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9 April 2015
Michigan Resident Sentenced to Prison for Criminal Contempt Involving Federal Tax ObligationsRead the Press Release
A resident of Commerce Township, Michigan, was sentenced to serve 18 months in prison to be followed by one year of supervised release for criminal contempt, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
In July 2014, Doreen Hendrickson was convicted of criminal contempt following a federal jury trial in Detroit. Hendrickson violated an injunction involving federal tax obligations issued by U.S. District Judge Nancy Edmunds of the Eastern District of Michigan in May 2007. Today’s sentence was imposed by U.S. District Judge Victoria Roberts.
According to court filings and evidence presented at trial, Hendrickson and her husband, Peter Hendrickson, filed federal income tax returns for the years 2002 and 2003 on which they falsely claimed they earned zero wages. Based on these false returns, the Internal Revenue Service (IRS) issued the Hendricksons more than $20,000 in income tax refunds that they were not entitled to receive. In 2006, the Tax Division sued the Hendricksons to recover these refunds. As part of that litigation, Judge Edmunds ordered the Hendricksons to file corrected amended tax returns for 2002 and 2003 that reported all of their income, and further ordered them to repay their fraudulently obtained refunds to the IRS. Judge Edmunds also barred the Hendricksons from filing additional false tax returns.
In 2009, Peter Hendrickson was convicted of filing multiple false income tax returns, including the 2002 and 2003 returns that he filed jointly with his wife. The tax returns at issue were based on the false and frivolous tax theories that Peter Hendrickson promoted in his book, “Cracking the Code,” and on his website, Lost Horizons. Peter Hendrickson was sentenced to serve 27 months in prison in that case.
The evidence presented at Doreen Hendrickson’s trial showed that she violated the injunction issued by Judge Edmunds when she failed to file amended 2002 and 2003 tax returns. Also, in direct violation of Judge Edmunds’s order, Hendrickson filed a false income tax return for 2008 on which she falsely claimed that wages she earned as a movie extra were not taxable. This tax return was submitted while her husband was under indictment for filing false tax returns.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Melissa S. Siskind, Jeffrey B. Bender and Jeffrey A. McLellan of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the Eastern District of Michigan for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Member of Organized Cybercrime Ring Sentenced to 150 Months in Prison for Selling Stolen and Counterfeit Credit CardsRead the Press Release
A member of the identity theft and credit card fraud ring known as “Carder.su” was sentenced today to 150 months in federal prison for selling stolen and counterfeit credit cards over the Internet. He was further ordered to pay $50.8 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Las Vegas Field Office made the announcement. U.S. District Judge Andrew P. Gordon of the District of Nevada imposed the sentence.
“Criminal cyber organizations like Carder.su threaten not just U.S. citizens but people in every corner of the globe,” said Assistant Attorney General Caldwell. “Managers in Russia seamlessly ran their criminal enterprise online using, among others, a counterfeit card vendor from New Jersey, with whom they communicated through screen name aliases. The success in this case was achieved through equally seamless cooperation with our foreign law enforcement partners and effective use of the RICO statute. As more countries work with us to fight these organizations, we will continue to evolve to meet this growing threat.”
“Mr. Smith’s crimes were very serious and justify a lengthy prison sentence,” said U.S. Attorney Bogden. “He admitted that he caused a loss of seven to $20 million involving over 250 victims, and that he obstructed justice when he fled to Jamaica while released on bond awaiting trial. We are working closely with our international, federal, state and local law enforcement partners to make sure that the perpetrators of these sorts of crimes are prosecuted no matter where in the world they commit their crimes or attempt to flee.”
“As this sentence demonstrates, cyber-criminals who purposely harm innocent Americans and compromise our financial system and global commerce will be aggressively pursued, investigated and prosecuted,” said Assistant Special Agent in Charge Harris. “These criminals may believe they can escape detection by fleeing the country and hiding behind their computer screens, but as this case shows, cyberspace is not a refuge from justice.”
Jermaine Smith, aka “SirCharlie57,” aka “Fairbusinessman,” 34, of East Orange, New Jersey, pleaded guilty in October 2014 to one count of participating in a racketeer influenced corrupt organization.
During his guilty plea, Smith admitted that in May 2009 he became associated with the Carder.su organization, a criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Specifically, Smith admitted that he operated as a vendor on the organization’s websites, using the “SirCharlie57” and “Fairbusinessman” nicknames. While acting as a vendor under those online monikers, Smith sold counterfeit credit cards to an undercover special agent. Those counterfeit credit cards were successfully processed for fingerprints, identifying Smith as the true user of the online screennames. In addition to the sale of the counterfeit credit cards, Smith admitted that he possessed over 2,150 stolen credit and debit card account numbers.
While on pretrial release in this case, Smith removed an electronic monitoring device from his person and fled to Jamaica. He was arrested four months later and returned to Nevada.
Fifty-six individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 26 individuals have been convicted and the rest are either fugitives or are pending trial.
The cases were investigated by ICE-HSI and the U.S. Secret Service, and are being prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.
This prosecution is in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes, enhancing coordination and cooperation among federal, state and local authorities, addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
Media AdvisoryRead the Press Release
Sioux City, Iowa – The United States Attorney’s Office for the Northern District of Iowa will hold a press conference on April 13th following the sentencing in federal court of Quality Egg, LLC, Austin (Jack) DeCoster, and Peter DeCoster.
The egg production company was linked to a nationwide salmonellosis outbreak during the spring and summer of 2010. There were nearly 2,000 reported consumer illnesses in multiple states, which led to the recall of millions of eggs produced by the company.
The United States Attorney, Kevin Techau, will be joined at the press conference by representatives from the FDA, USDA and Consumer Protection Branch of the US Department of Justice.
Event Details
When: Monday, April 13, 2015
Where: U.S. Attorney’s Office, Ho-Chunk Centre, 600 Fourth St. Sioux City, Iowa. Those wishing to attend need to report to the 6th Floor to get a pass and be escorted to the 7th Floor Conference Room.
Time: To follow after the sentencing, which begins at 9:00 a.m.
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Madison, Wisconsin, Man Charged with Attempting to Provide Material Support to ISILRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney John W. Vaudreuil of the Western District of Wisconsin and Special Agent in Charge Robert J. Shields Jr. of the FBI’s Milwaukee Division announced that Joshua Ray Van Haften, 34, of Madison, Wisconsin, has been charged with attempting to provide material support and resources, namely himself as personnel, to a foreign terrorist organization. As alleged in the complaint, Van Haften intended to travel into Iraq or Syria to join the Islamic State of Iraq and the Levant (ISIL).
The complaint alleges that Van Haften left the United States on Aug. 26, 2014, and traveled to Istanbul. As alleged in the complaint, Turkey shares a land border with Syria and is known to be an entry point into Syria for those who wish to join ISIL.
“Van Haften traveled overseas for the alleged purpose of joining and attempting to provide material support to ISIL,” said Assistant Attorney General Carlin. “Stemming the flow of foreign fighters to Iraq and Syria and holding accountable those who attempt to provide material support to designated foreign terrorist organizations remains a top priority for the National Security Division. I would like to thank all the agents, analysts and prosecutors who are responsible for this case.”
“We will continue to work with our law enforcement partners to investigate, arrest, and vigorously prosecute all extremists who choose to aid ISIL, or any other terrorist organization, and to stop them before they harm the United States or our allies,” said U.S. Attorney Vaudreuil. “We also remain committed to working with dedicated community members to bring this cycle to an end.”
“This arrest underscores the importance of our JTTF law enforcement partnerships to bring those to justice who provide support and resources to terrorist organizations such as ISIL,” said Special Agent in Charge Shields. “We hope this arrest will serve as a deterrent for others who may be terrorist sympathizers here in Wisconsin, across the nation or abroad: they will be held accountable for support of terrorism against our citizens and our international partners.”
Van Haften was arrested at O’Hare Airport in Chicago yesterday evening after his arrival in custody on an international flight from Turkey.
Van Haften will make an initial appearance in U.S. District Court at 9:45 a.m. CDT today before U.S. Magistrate Judge Stephen L. Crocker of the Western District of Wisconsin. If convicted, the defendant faces a maximum penalty of 15 years in federal prison.
This case was investigated by the Joint Terrorism Task Force, the members of which include the FBI, the Wisconsin Department of Justice’s Division of Criminal Investigation, the Dane County Sheriff’s Office and the University of Wisconsin Police Department. Assistance was also provided by the Department of Homeland Security. The case is being prosecuted by U.S. Attorney Vaudreuil and Assistant U.S. Attorney Jeffrey Anderson of the Western District of Wisconsin, and Trial Attorney Lolita Lukose of the Justice Department’s National Security Division.
The charges contained a complaint are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
Van Haften Complaint
MS-13 Gang Associate Convicted for the Robbery of A Brothel That Included A Rape and MurderRead the Press Release
Greenbelt, Maryland - A federal jury today convicted Alexsi Lopez, age 26, of Hyattsville, Maryland, of conspiracy and the violent robbery of a Hyattsville brothel that resulted in a rape and murder.
The conviction 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 Mark A. Magaw of the Prince George’s County Police Department.
According to the evidence presented at his six day trial, Lopez was associated with the MS-13 gang and knew his co-defendant, Ramon Miguel Cerros-Cruz through MS-13. Evidence showed that Lopez and Cerros-Cruz familiarized themselves with the location and operation of brothels in the Hyattsville-Langley Park area of Prince George’s County, then planned the robbery of a Hyattsville brothel apartment. According to trial testimony, on February 28, 2007, Lopez and Cerros-Cruz entered the brothel apartment armed with knives, and using force and violence, demanded money from the people within the brothel and searched the apartment for cash and items of value. Witnesses testified that Lopez and Cerros-Cruz bound one of the brothel’s employees, raped another employee and murdered a third person who arrived at the brothel during the commission of the rape and robbery, stabbing him multiple times when he resisted the demands of the defendants. DNA evidence placed Lopez and Cerros-Cruz at the scene.
Lopez faces a maximum sentence of 20 years in prison for the conspiracy and for the robbery. U.S. District Judge Paul W. Grimm has scheduled sentencing for August 24, 2015, at 1:00 p.m.
Ramon Miguel Cerros-Cruz, age 25, of Silver Spring, Maryland previously pleaded guilty and was sentenced of 10 years in prison for the robbery.
United States Attorney Rod J. Rosenstein praised HSI Baltimore and the Prince George’s County Police Department for their work in the investigation and thanked the Prince Georges County Department of Corrections and the Maryland Department of Public Safety and Correctional Services for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau and Daniel C. Gardner, who are prosecuting the case.
Lubbock Man Sentenced to 78 Months in Federal Prison for Possessing Child PornographyRead the Press Release
LUBBOCK, Texas — A 58-year-old Lubbock, Texas, man, who admitted possessing child pornography, was sentenced this morning, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Rassie Cleveland Martin was sentenced to 78 months in federal prison by U.S. District Judge Sam R. Cummings. Martin must surrender to the Bureau of Prisons by May 15, 2015.
According to plea documents filed in the case, Martin used a desktop computer at his residence to search the Internet for images and videos of child pornography. He searched with the intent of locating material depicting minors engaging in sexually explicit conduct, and in the course of searching for this material, located, downloaded, and viewed numerous images and videos constituting child pornography.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Local Insurance Salesman Pleads Guilty to Fraud and Tax ChargesRead the Press Release
St. Louis, MO – PAUL PARKER pled guilty to charges involving a scheme to defraud four clients by using their investment funds to pay his expenses and gamble. He also admitted that he willfully failed to file tax returns during the scheme, in part to avoid reporting his income from the fraud.
According to court documents, Parker held an account in the name of American Investors, Inc. for the purported purpose of receiving funds from clients to purchase life insurance annuities. Rather than purchase annuities on his clients’ behalf, however, Parker spent their money on personal expenses and gambling. In the course of the scheme, Parker also used monies contributed by later clients to fund repayments to prior clients. In total, Parker took in approximately $259,168 through false and fraudulent pretenses, resulting in a loss to investors of approximately $209,168. Parker also admitted to failing to file federal income tax returns for three years from 2010 to 2012.
Parker, St. Louis, Missouri, pled guilty to one felony count of mail fraud and three counts of failure to file a tax return before United States District Judge Rodney W. Sippel. Sentencing has been set for July 16, 2015.
Mail fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000; each count of failure to file tax returns carries a maximum penalty of one year in prison and/or fines up to $25,000.
This was investigated by Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney Richard Finneran is handling the case for the U.S. Attorney’s Office.
Leader of Drug Trafficking Organization Sentenced to 20 Years in Prison Following Operation Crystal ClearRead the Press Release
El Dorado, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Jamie B. Martin, age 36, of Waldo, Arkansas, was sentenced to 240 months in prison followed by three years of supervised release on one count of Conspiracy to Distribute Methamphetamine as part of “Operation Crystal Clear”, an investigation into large-scale drug trafficking of methamphetamine throughout Columbia County, Arkansas, and surrounding areas. The Honorable Susan O. Hickey presided over the sentencing hearing in the United States District Court in El Dorado.
U.S. Attorney Eldridge commented, “With the sentence announced today, another drug trafficking organization has been successfully dismantled, and its leader brought to justice. The criminal activity involved in this case victimized the people of Waldo, Magnolia, and the surrounding area. Our office remains committed to vigilantly and aggressively prosecuting drug trafficking organizations across the Western District of Arkansas in order to eradicate the crime and violence they bring into our communities.”
“Martin earned this sentence,” stated Special Agent in Charge David T. Resch of the Federal Bureau of Investigation in Little Rock. “The FBI, FBI Task Force, and our partnership with the United States Attorney’s Office, the Magnolia Police Department, and the 13th Judicial Drug Task Force will continue to work to dismantle dangerous drug trafficking organizations in our communities.”
According to court records, beginning in 2011, agents with the FBI and FBI Task Force initiated an investigation, known as “Operation Crystal Clear”, into Jamie Martin and his drug trafficking organization. During the investigation, agents identified Martin as a source of supply in Columbia County, Arkansas. Pursuant to a court order, agents intercepted the wire and electronic communications of a cell phone used by Jamie Martin. Over the course of the court-ordered interception, investigators received numerous wire and electronic communications between Martin and his co-conspirators discussing the distribution of methamphetamine and collection of drug debts. In many of the communications, Martin and co-conspirators used coded language to disguise their drug trafficking activities. Through their investigation, agents learned that Martin was responsible for the distribution of ounce quantities of methamphetamine to various customers in the Western District of Arkansas. Additionally, during the course of the investigation, agents conducted numerous controlled purchases of methamphetamine from Martin. During the course of those controlled buys, Martin sent various co-conspirators to deliver the methamphetamine on his behalf. As a result of this investigation, agents seized over three pounds of methamphetamine, five firearms, and approximately $160,000 in cash. Martin and his co-conspirators were originally charged in a 15-count indictment by a Federal Grand Jury which was filed on March 6, 2013. Martin pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on December 11, 2013. During sentencing, it was determined that Martin was an organizer or leader of a criminal activity that involved five or more participants and that Martin possessed a dangerous weapon during the commission of the offense.
Following are Martin’s co-conspirators who were charged in federal court and their sentences for their involvement in “Operation Crystal Clear”. Numerous other co-conspirators were charged in the state court system.
Claudie J. Miller, aka “June Bug”, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine and was sentenced to 140 months in prison.
Chevis D. Johnson pleaded guilty to one count of Distribution of Methamphetamine and Aiding and Abetting and was sentenced to 180 months in prison.
Courtney K. Loudermill pleaded guilty to one count of Conspiracy to Distribute Methamphetamine and was sentenced to 48 months in prison.
Curtis J. Cole, aka “Peetie”, pleaded guilty to one count of Distribution of More than 50 grams of Methamphetamine and was sentenced to 168 months in prison.
Ervin K. Moss, aka “Kelso”, pleaded guilty to one count of the Use of a Communication Facility in Furtherance of the Distribution of Methamphetamine and was sentenced to 6 months in prison.
Monte V. Dismuke pleaded guilty to one count of Use of a Communication Facility in Furtherance of the Distribution of Methamphetamine and was sentenced to 48 months in prison.
This case was investigated by the FBI, the FBI Task Force, the Magnolia Police Department, and the 13th Judicial Drug Task Force. Assistant United States Attorney Ben Wulff prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records Website at www.Pacer.gov
Latrobe Man Pleads Guilty to Producing Child PornographyRead the Press Release
PITTSBURGH - A resident of Westmoreland County, Pennsylvania, pleaded guilty in federal court to a charge of production of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
Thomas Deglau, 56, formerly of Latrobe, Pa. pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on dates from on or about January 2012 to January 2014, Deglau employed, used, persuaded, induced, enticed, and coerced a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the sexual exploitation of the minors.
Judge Hornak scheduled sentencing for July 30, 2015, at 2:30 p.m. The law provides for a total sentence of 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Deglau.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Las Vegas Tax Preparer Indicted by Federal Grand Jury for Preparing False Tax Returns for ClientsRead the Press Release
A Las Vegas tax return preparer was indicted yesterday on 66 counts of preparing and causing the filing of false tax returns, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Daniel G. Bogden of the U.S. Attorney’s Office for the District of Nevada announced today.
According to the allegations in the indictment, Rosherral Beverly, of Clark County, Neveda, operated a tax preparation and bookkeeping business named RBTB Inc. From approximately 2006 through 2011, Beverly was RBTB Inc.’s sole owner and tax return preparer. Beverly aided and assisted in preparing false and fraudulent tax returns for her clients for the tax years 2008, 2009 and 2010. The tax returns included various false items, including charitable contributions, gambling losses, tuition deductions, education credits and job, travel and vehicle expenses.
If convicted, Beverly faces a statutory maximum sentence of three years in prison and a $250,000 fine for each count of aiding and assisting in the preparation of false tax returns.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended the special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorney Christopher J. Maietta of the Tax Division and Assistant U.S. Attorney Nicholas D. Dickinson of the District of Nevada, who are prosecuting the case.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
More information about the Tax Division and its enforcement efforts is available on the division’s website.
Kenyan pleads guilty to charge in Dreamboard child sex exploitation site caseRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Kenyan pleaded guilty to producing child pornography for the Dreamboard child sex exploitation and child pornography site.
Brian Musomba Maweu, 51, of Kenya, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of engaging in a child exploitation enterprise. He was recently extradited to the United States from Kenya. According to evidence presented at the guilty plea, Maweu, using the online alias “Catfish,” made 121 posts on the Dreamboard site, which he joined on January 18, 2009. Of those posts, 34 were of child pornography he produced himself. Maweu was considered a “Super VIP” level member of the Dreamboard site. Super VIP is a designation given to members who were prominent on the site and produced homemade child pornography.
Maweu faces 20 years to life in prison, not less than five years to not more than life of supervised release, and a $250,000 fine. A sentencing date of July 14, 2015 was set.
Maweu was charged in an indictment unsealed on Aug. 3, 2011. The charges were the result of Operation Delego, an investigation launched in December 2009 that targeted individuals around the world for their participation in Dreamboard. The board was a private, members-only, online bulletin board that was created and operated to promote pedophilia and encourage the sexual abuse of very young children in an environment designed to avoid law enforcement detection.
A total of 72 individuals, including Maweu, were charged as a result of Operation Delego. To date, 57 of the 72 charged defendants have been arrested in the United States and abroad. Eight of the 57 are in the process of being extradited to the United States. Forty-eight individuals have pleaded guilty, and one was convicted after trial. The 47 individuals who have pleaded guilty or found guilty for their roles in the conspiracy have been sentenced to prison and have received sentences ranging between five years to life in prison. Three defendants have received life sentences, including the one who was convicted at trial. Fifteen of the 72 charged individuals remain at large and are known only by their online identities. Efforts to identify and apprehend these individuals continue. Operation Delego represents the largest prosecution to date in the United States of individuals who have participated in an online bulletin board conceived and operated for the sole purpose of promoting child sexual abuse, disseminating child pornography and evading law enforcement.
“There is still much work to be done before most, if not all, online operations like this one can be stopped,” Finley stated. “It took the work of agencies, both domestic and international, to find and bring this defendant to justice. We hope to make more arrests in the case and bring to justice all of the individuals who perpetrate such vile schemes that endanger children. I want to thank all the agencies and prosecutors who have worked on this case.”
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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case is being prosecuted by Assistant U.S. Attorneys John Luke Walker and Michael O’Mara of the Western District of Louisiana and Trial Attorney Keith Becker of CEOS. The Criminal Division’s Office of International Affairs provided substantial assistance. The investigation was conducted by ICE-Homeland Security Investigations, the Child Exploitation Section of ICE’s Cyber Crime Center, CEOS, CEOS’s High Technology Investigative Unit and 35 ICE offices in the United States and 11 ICE attaches offices in 13 countries around the world, with assistance provided by numerous local and international law enforcement agencies across the United States and throughout the world.
ICE encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-DHS-2ICE. This hotline is staffed around the clock by investigators. Tips or other information can also be submitted to ICE online at www.ice.gov/exec/forms/hsi-tips/tips.asp. Tips may be reported anonymously.
Judge Sentences Johnstown Crack Dealer to 10-Year Prison TermRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been sentenced in federal court to 120 months in prison and three years supervised release on his conviction of distribution of cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on John D. Malden, 40, of Johnstown, Pa.
According to information presented to the court, on April 25, 2013, Malden distributed less than 28 grams of cocaine base.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force for the investigation leading to the successful prosecution of Malden.
Johnstown Man Indicted on Federal Drug and Firearms ChargesRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., has been indicted by a federal grand jury in Johnstown on charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
The three-count indictment named Tony U. Atwood, 43, of Johnstown, Pa., as the sole defendant.
According to the indictment, on June 4, 2014, Atwood distributed less than 100 grams of heroin, and he possessed less than 100 grams of heroin with the intent to distribute it. In addition, on the same day, Atwood, who had been convicted in 1995 in Cambria County, Pennsylvania, of Drug Act/Possession with the intent to deliver a controlled substance, unlawfully possessed a Titan semi-automatic pistol. Federal law prohibits persons who have been convicted of a crime punishable by imprisonment for more than one year from possessing ammunition or firearms. Drug Act/Possession with the intent to deliver a controlled substance is such a crime.
The law provides for a maximum total sentence of 50 years in prison, a fine of $2,250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
According to Mr. Hickton, Atwood is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Jefferson County Man Sentenced for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A 34-year-old Port Arthur, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Damien Oasis Winn pleaded guilty on Dec. 4, 2014, to possession of child pornography and was sentenced to 86 months in federal prison today by U.S. District Judge Ron Clark.
According to information presented in court, in December 2013, law enforcement officers conducting Internet undercover operations were made aware of a computer offering files containing child pornography for distribution. Further investigation revealed the computer belonged to Winn. On June 19, 2014, a federal search warrant was executed at Winn’s residence and numerous computers and digital storage devices were seized. A forensic analysis of Winn’s computer revealed over 600 images, including 31 videos, of child pornography. Winn was indicted by a federal grand jury on Sep. 3, 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.
Jackson Woman Sentenced to Ten Years in Prison for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss. – Marietta Harris, 39, of Jackson, was sentenced on April 8, 2015 by U.S. District Judge Henry T. Wingate to 120 months in federal prison followed by three years of supervised release for stolen identity refund fraud, announced U.S. Attorney Gregory K. Davis and Acting Special Agent in Charge Jerome R. McDuffie with IRS Criminal Investigation. Harris was also ordered to pay restitution to the Internal Revenue Service in the amount of $771,956.27.
Harris admitted to conspiring to defraud the government by using personal identifying information, including names and social security numbers which had been stolen from the Central Mississippi Correctional Facility located in Rankin County, the University of Mississippi Medical Center and other locations. The information was then used by Harris and her co-conspirators to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. Refunds were then electronically deposited into various bank accounts in Mississippi belonging to Harris and her co-conspirators.
U.S. Attorney Gregory K. Davis commended the agents with IRS Criminal Investigation and the U.S. Secret Service who investigated this case. "The prosecution of stolen identity refund fraud cases continues to be a top priority of the Department of Justice. Today’s sentencing should serve as a warning that those who choose to prey on others to enrich themselves will be brought to justice," said U.S. Attorney Davis.
Acting Special Agent in Charge, Jerome R. McDuffie, IRS – Criminal Investigation, stated, "We are very pleased with the sentence handed down by the court in this matter. Marietta Harris engaged in a conspiracy that involved the use of stolen identification information which originated from the MDOC, the University of Mississippi Medical Center, and a local physician patient database. The use of this information to prepare fraudulent tax returns not only resulted in the victimization of the government and its taxpayers, but many vulnerable individuals as well. She earned her time in prison, and must now commence with making recompense for her actions. The Special Agents of IRS – Criminal Investigation remain diligent in our pursuit of the
most egregious cases involving identity theft, and are committed to our partnerships with other federal agencies to put an end to Stolen Identity Refund Fraud."
This case was investigated by the United State Secret Service and the Internal Revenue Service Criminal Investigation. It was prosecuted by Assistant United States Attorney Patrick Lemon.
Irondequoit Woman Charged with Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Megan McDonald, 35, of Irondequoit, NY, was arrested and charged by criminal complaint with production, distribution and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 40 and a fine of $250,000.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, the defendant engaged in an ongoing conversation online with co-defendant Jason Cortese. He was arrested and charged with attempted production of child pornography, enticement of a minor, distribution and possession of child pornography on March 31, 2015.
During these online chats, the complaint states that McDonald expressed a sexual interest in young girls and sent Cortese numerous images of nude children, including nude images and videos of a victim identified in this case. According to the complaint, McDonald sent the images to Cortese’s phone two or three years ago. A search of the phone by law enforcement officers uncovered images and videos that appear to depict the victim as well as a second victim in this case.
The complaint also states that one of the victims was four years old when the images and videos were produced by McDonald. The defendant, according to the complaint, also produced the images of the second victim who was one year old at the time they were produced.
McDonald made an initial appearance this afternoon before U.S. Magistrate Judge Marian W. Payson and is due back in court on April 13, 2015 at 3:00 p.m. for a detention hearing.
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn, and the Irondequoit Police Department, under the direction of Chief Richard V. Tantalo.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Illegal Alien to Serve Prison Time for Drug Crimes Before Deportation to MexicoRead the Press Release
PITTSBURGH - A native of Mexico, and a part-time visitor to the Los Angeles area of California, pleaded guilty in federal court to criminal charges regarding his cocaine trafficking and laundering of drug money on March 7, 2015, United States Attorney David J. Hickton announced today.
Gustavo Godinez who goes by the aliases Jorge Navarro Ochoa, Abel Acosta, Sergio Leon- Fregosa, Gustavo Torres, and “Tigre” (Spanish for “Tiger”), pleaded guilty to all of his charges before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Godinez is a Mexican-born drug dealer who supplied between five and 15 kilograms of cocaine to Pittsburgh area drug dealers between 2012 and 2013. Using his drug proceeds, Godinez obtained expensive vehicles in the names of others and also opened bank accounts in the names of others. The federal investigation revealed that Godinez obtained drug payments from the Pittsburgh cocaine sales in the form of bank deposits, money orders, and wire transfers and that he utilized various associates in multiple states to obtain, deposit, cash, and withdraw the funds, incorrectly believing that his efforts would make it impossible for law enforcement to trace the money back to him. The organization kept the amounts of the money orders below federal reporting obligations for the same reason.
Judge Hornak scheduled sentencing for July 30, 2015, at 10 a.m. and ordered a detailed presentence report to be prepared by the United States Probation Office containing various aspects of the defendant’s life including: his juvenile and adult criminal history; family background; educational landmarks; and any work history. Godinez personally signed a written plea agreement with the government which was provided to the court. If the plea agreement is accepted by Judge Hornak after reviewing the presentence report, the defendant will serve 10 years in federal prison in addition to supervision and a fine to be determined by the Court. Since the defendant was on supervision in California during 2012-13 for a previous conviction involving his attempted sale of methamphetamine, Godinez acknowledged in court that he faces the possibility of additional incarceration in California.
Pending sentencing, the court ordered that Godinez remain incarcerated in the custody of the United States Marshal Service. Court filings indicate that Godinez had been kept in a secure area of a federal facility as a result of alleged threats to government witnesses and his previous attorney.
Assistant United States Attorneys Jonathan Ortiz and Ross Lenhardt from the Violent Crime Section of the United States Attorney’s Office prosecuted Godinez on behalf of the government.
United States Attorney Hickton praised the collaborative efforts of all of the federal, state and local law enforcement officers who worked together to bring Godinez and his associates to justice. United States Attorney Hickton noted the efforts of the Drug Enforcement Administration, whose investigation was led by Special Agent Mark Koss of the Pittsburgh District Office, and DEA HIDTA (High Intensity Drug Trafficking Area) Group 44, whose investigation was led by Los Angeles Police Detective Sal Duarte. U.S. Attorney Hickton specifically noted the valuable efforts of the United States Postal Service, the Internal Revenue Service- Criminal Investigations, the Pennsylvania Attorney General’s Office, the Department of Homeland Security and numerous other officers and agencies.
Godinez and his drug trafficking organization was prosecuted through a multi-agency federal effort within the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program is intended to focus on prosecuting large scale drug traffickers whose crimes directly affect multiple jurisdictions within the United States.
Harrisburg Man Sentenced to 48 Months in Prison for Distribution of CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerome Brunson, age 49, of Harrisburg, was sentenced to 48 months in prison today by Chief U.S. District Court Judge Christopher C. Conner in Harrisburg, for distribution of cocaine hydrochloride.
According to United States Attorney Peter Smith, Brunson was charged in a Criminal Superseding Information filed by the United States Attorney on December 4, 2014. Brunson pled guilty on this same date.
Judge Conner ordered Brunson to be placed on three years of supervised release following his prison sentence. Brunson must also pay a $400 fine and a $100 special assessment.
The case was investigated by Drug Enforcement Administration (DEA) and Dauphin County Drug Task Force. Assistant U.S. Attorney Daryl F. Bloom prosecuted the case.
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Grand Jury Indicts Woman for Tax and Identity Theft SchemeRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced the filing of criminal charges against another individual accused of committing theft of government property and aggravated identity theft in the Baton Rouge area, as part of an ongoing effort by the United States Attorney’s Office, the Internal Revenue Service’s Criminal Investigations Division, and the United States Department of Justice’s Tax Division to combat stolen identity refund fraud and other tax fraud schemes.
LAGUARDIA COSTON, age 27, of Baton Rouge, Louisiana, was charged in an indictment with four counts of theft of government property; four counts of receiving stolen government property; and two counts of aggravated identity theft. If convicted, the defendant faces a significant term of imprisonment, fines, restitution, and the forfeiture of the proceeds from the alleged scheme.
The indictment alleges that COSTON obtained numerous federal tax refunds, via checks deposited with and electronic wire transfers to bank accounts she controlled, knowing that the refunds belonged to other taxpayers and that she was not entitled to the funds. According to the indictment, COSTON also knowingly possessed and used the taxpayers’ names and social security numbers.
U.S. Attorney Green stated: “This indictment reflects our continuing commitment to stop identity theft and tax fraud schemes. We are dedicated to aggressively pursuing such criminality wherever it is found. I commend the hard work of the IRS-CI and the prosecutors working on these important matters.”
“We will continue to work aggressively with the United States Attorney's Office to protect innocent taxpayers and preserve the integrity of our tax system.” said Jerome R. McDuffie, Acting Special Agent in Charge, IRS Criminal Investigation. “We will vigorously pursue fraudulent refund claims and those individuals who engage in identity theft. Protecting taxpayer’s money and personal information will remain one of our core missions.”
This matter is being handled by the IRS Criminal Investigation. It is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Former State Representative Tyrone Brooks, Sr., Pleads Guilty to Fraud and Tax ChargesRead the Press Release
ATLANTA - Tyrone Brooks, Sr., has pleaded guilty to charges that he misappropriated almost $1 million in charitable funds from Universal Humanities, a charity he founded in 1990, and the Georgia Association of Black Elected Officials (GABEO). From the mid-1990s through 2012, Brooks solicited contributions from individuals and corporate donors to combat illiteracy and fund other charitable causes, but then used the money to pay personal expenses for himself and his family.
“Through two charitable organizations he led, Representative Brooks raised over one million dollars for the causes of illiteracy, crime and voter disenfranchisement that plague our disadvantaged communities, especially ones in poor and rural areas,” said Acting U.S. Attorney John Horn. “Sadly, Representative Brooks misappropriated nearly all of the money to pay personal expenses for himself and his family. By diverting these funds, he deprived those communities from receiving the literacy training and other assistance that they so desperately needed.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “People have a right to expect honesty and integrity from their elected officials. The FBI’s Public Corruption program plays a vital role in ensuring that any such departures from the expected honesty and integrity of public officials that result in violations of the law will be investigated. The FBI launched its investigation in this matter based on information and facts that indicated that a State elected official was using undue influence for personal gain. The FBI, in conjunction with IRS-CI, followed those facts throughout this investigation, which led to this guilty plea of former State Representative Tyrone Brooks.”
“Mr. Brooks exploited his position as representative and director of Universal Humanities and GABEO for his own personal financial gain, which came at the expense of the organizations and people he was trusted to serve,” stated Special Agent in Charge, Veronica F. Hyman-Pillot, IRS Criminal Investigation. “In addition, Brooks stole money from the American taxpayers by failing to report the income and pay taxes on the money he diverted.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Universal Humanities SchemeThe government presented evidence at the plea hearing that from at least 1995 through 2012, Brooks solicited contributions for Universal Humanities from corporate and individual donors purportedly to combat illiteracy in disadvantaged communities in Georgia and across the southeastern United States, eventually raising more than $800,000. Donors included the Coca-Cola Company, Georgia Pacific Company, Northside Hospital, and others who gave smaller amounts. Brooks made specific false representations in his written solicitations about the work that Universal Humanities was doing to combat illiteracy; he described how the donated funds would be used, claiming that Universal Humanities had established literacy programs, conducted workshops, and tutored and mentored students. He also falsely claimed that Universal Humanities used a staff and operated under the leadership of a board of directors.
In reality, Brooks did not use the donations to promote and address literacy in Georgia or elsewhere, or to retain a staff, occupy office space, fund workshops, hire instructors, or conduct programs attended by students. Instead, Brooks used the money to pay personal expenses for himself and members of his family, including home repairs, furniture, lawn service, life insurance, entertainment, personal credit card expenses, utility bills, food and clothing, dry cleaning, electronic equipment, jewelry, and payments on personal loans, among other personal expenses.
Brooks generally accomplished the diversion of funds by depositing the solicited donations into a bank account that he established in the name of Universal Humanities, then almost immediately transferring the funds to a personal account, from which he paid personal expenses. At times, Brooks paid personal expenses directly from the Universal Humanities account.
Contrary to Brooks’ representations to donors, Universal Humanities never had a functioning board of directors. The individuals listed on the solicitations and incorporation documents were unaware that Brooks had identified them as Universal Humanities board members, and most had never even heard of the organization.
Brooks represented in a 1999 solicitation that Universal Humanities had been “so successful” in Georgia that it was expanding its programs to other states in the Southeast, and expected to have a projected budget of $500,000. In truth, Universal Humanities did not have an operational literacy program inside or outside of Georgia, nor did it have a projected budget of $500,000.
Brooks represented that Universal Humanities’ literacy program, which Brooks called “Visions of Literacy,” consisted of a host of “outlets” created to increase literacy and included activities such as seminars, workshops, tutoring, mentoring, and rallies. Brooks further claimed that Universal Humanities and its “staff had over 40 years’ experience in assisting U.S. communities through a variety of efforts,” and that 10,000 people would be the direct beneficiaries of the literacy program. In fact, Universal Humanities and Brooks did not operate a functional literacy program, did not host the literacy activities described in the solicitation, or did not have a staff.
Brooks represented in a 2011 solicitation that the Visions of Literacy program conducted monthly workshops, seminars, and advocacy outreach activities, and that the solicited funds would be used to hire retired teachers and administrators as “educational consultants” to gain targeted results. Instead, Brooks spent the funds donated in response to this solicitation on payments for personal credit card charges, personal loan payments, utility bills, and a $500 check to a family member as a Christmas gift.
Unbeknownst to GABEO, Brooks represented in a 2011 solicitation that GABEO was a “sister organization” to Universal Humanities and that GABEO was committed to the “growth and advancement of Universal Humanities.” Brooks falsely claimed that GABEO members spoke in public forums to implement and promote Universal Humanities’ programs; that GABEO members taught at Universal Humanities meetings and classes “alongside” Universal Humanities community organizers; and that GABEO members served on the Universal Humanities’ board of directors, steering committee, fundraising committee, and program management committees, though the purported committees were nonexistent.
As a result of Brooks’ misappropriation, the intended beneficiaries of the donated funds did not receive the needed literacy training or assistance.
GABEO Scheme
The government presented evidence at the plea hearing that Brooks also diverted charitable donations he solicited on behalf of GABEO and used much of the money to pay personal expenses for himself and his family. GABEO is an organization of state, county, and municipal elected officials which promotes crime prevention, voter registration, literacy and economic empowerment initiatives.
Brooks solicited contributions for GABEO from corporations, organizations and individuals. When Brooks was elected as GABEO’s President in 1993, the organization already maintained an official bank account at a local bank. This account was administered by GABEO’s Treasurer, and disbursements required two signatures by GABEO Board members. In December 1997, Brooks secretly opened a second GABEO bank account at a different bank. Brooks set himself up as the sole signatory on this account, and had the account statements sent to his address rather than the address of the GABEO Treasurer. Brooks then deposited the donations that he solicited on behalf of GABEO into this undisclosed account, and used much of these funds to pay personal expenses for himself and his relatives.
Between 2002 and 2012, businesses, civic, religious groups and individuals contributed approximately $300,000 to GABEO through Brooks, which he then deposited into the undisclosed GABEO account. Brooks misappropriated donations that he solicited on behalf of GABEO from corporations, local teacher unions, small business owners, and individual donors – all of whom relied on Brooks’ assurances that the contributions were intended to further GABEO’s community activities. The GABEO Board was unaware of this activity and did not approve these transactions.
Brooks misappropriated the GABEO funds in much the same manner as the Universal Humanities funds. Brooks deposited funds he solicited on behalf of GABEO into the undisclosed GABEO account, then transferred the funds to his personal account, from which he paid his personal expenses. While Brooks utilized some of the GABEO donations to pay expenses related to GABEO’s annual meetings, he utilized much of the GABEO funds for personal expenses.
During the time that Brooks acted as GABEO’s President, a variety of charitable groups, companies and individuals made donations to GABEO through Brooks. These donors relied on Brooks’ representations that GABEO would use the contributions to defray the costs of the organization’s annual meetings and convention, and to support GABEO’s programs.
Brooks made specific false representations to donors about how the solicited funds would be used, claiming that the funds would be used to cover the expenses of annual GABEO meetings, support GABEO crime prevention and child hunger initiatives, voter registration, felon rehabilitation initiatives, and literacy programs. Donors included Coca Cola, Georgia Power, the International Brotherhood of Teamsters and others. Instead, Brooks deposited these funds into the undisclosed GABEO account that he controlled and then transferred the money to his personal account, ultimately using most of the contributions to pay personal expenses.
By misappropriating GABEO donations for his personal use, Brooks benefitted himself at the expense of both GABEO and the communities most in need of the literacy, crime prevention and voter registration programs for which the funds were intended.
False Tax Returns ChargesFinally, Brooks pleaded guilty to tax fraud and, in so doing, he admitted he substantially underreported his income to the IRS for the 2011 tax year. Despite Brooks’ misappropriation of Universal Humanities and GABEO funds, his tax return for the 2011 tax year falsely reported a salary of only approximately $35,000 annually.
Brooks, 68, of Atlanta, Georgia, pleaded nolo contendere guilty to five counts of mail and wire fraud and fully admitted his guilt as to one count of tax fraud.
This case is being investigated by Special Agents of the Federal Bureau of Investigation and Internal Revenue Service.
Assistant United States Attorneys Kurt R. Erskine, Richard S. Moultrie, Jr. and Kamal Ghali are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.Former Piedras Negras “Plaza” Drug Trafficker Pleads Guilty to Federal Drug Distribution ChargeRead the Press Release
In San Antonio today, 46-year-old Esiquiel Rodriguez (aka “Cheke”), a former major drug trafficker in the Piedras Negras “Plaza,” pleaded guilty to his leadership role in the importation and distribution of thousands of kilograms of narcotics into the United States from Mexico announced Acting United States Attorney Richard Durbin, Jr., DEA Special Agent in Charge Joseph Arabit and San Antonio Police Chief Anthony Treviño.
Appearing before Chief United States District Judge Fred Biery this morning, Rodriguez pleaded guilty to one count of conspiracy to possess with intent to distribute a controlled substance. By pleading guilty, Rodriguez admitted that since the early 2000s, he was one of the major drug traffickers in the Piedras Negras “Plaza” in Coahuila, Mexico, and was responsible for the transportation of thousands of kilograms of cocaine and marijuana from Mexico into the United States.
Law enforcement investigations revealed that Rodriguez had strong associations with various large scale narcotics organizations, including the Los Zetas transnational drug cartel. From approximately 2007 through 2009, Rodriguez worked with various high level Zetas trafficking cocaine. The investigation revealed that between 2007 and 2009, Rodriguez and others smuggled a minimum of 500 kilograms of cocaine per month from Mexico into the United States, and at least 6,000 kilograms per year during this time frame. Most of this cocaine was smuggled through the Eagle Pass Port of Entry to San Antonio and then distributed to other destinations throughout the United States. Many of the same persons and vehicles used to smuggle narcotics into the United States were used to smuggle millions of dollars of drug proceeds back into Mexico as well as weapons for the Zetas. These weapons were assault type weapons which were used to control the Plazas or drug trafficking areas controlled by the Zetas.
As a result of his guilty plea to the conspiracy charge, Rodriguez faces a sentence of 35 years in federal prison if the terms of the plea agreement are approved by the Court. Sentencing is scheduled for 8:30am on July 24, 2015, before Chief Judge Biery.
In a separate but related matter, Rodriguez was arrested in April 2013 by the San Antonio Police Department and charged with possession with intent to distribute methamphetamine. On September 29, 2014, Rodriguez pleaded guilty to possession with intent to distribute over 300 grams of pure methamphetamine. He faces between ten years and life in federal prison. Sentencing on the methamphetamine charge, which will be before U.S. District Judge Orlando Garcia, has yet to be scheduled.
These charges resulted from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation conducted by agents with the Drug Enforcement Administration (DEA), San Antonio Police Department and the High Intensity Drug Trafficking Area Task Force (HIDTA), which is comprised of investigators from the Texas Department of Public Safety, Homeland Security Investigations (HSI), Federal Bureau of Investigation (FBI) , Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Internal Revenue Service-Criminal Investigation (IRS-CI). The U.S. Border Patrol also assisted in this investigation.
The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering operations, and those primarily responsible for the nation’s illegal drug supply.
Former Owner of Defense Contracting Company Admits Defrauding U.S. Department of Defense with Foreign Aircraft PartsRead the Press Release
TRENTON, N.J. – The former owner of a New Jersey defense contracting business today admitted supplying the U.S. Department of Defense (DoD) with foreign-made replacement parts on contracts that only allow products manufactured in the United States, U.S. Attorney Paul J. Fishman announced.
Mehmet Karatokus, 39, of Ankara, Turkey, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of mail fraud.
According to documents filed in the case and statements made in court:
Karatokus, a Turkish citizen who became a United States resident in 2013, was the founder and owner of Diamond Parts, a company that supplied the DoD with replacement parts for aircraft and other defense items. When he registered the company with the DoD, Karatokus provided a location in Red Bank, New Jersey, even though Diamond Parts did not have manufacturing capabilities in the United States. The investigation revealed that Diamond Parts was actually a shell company created for the purpose of obtaining DoD contracts that Turkish-based manufacturers were not permitted to receive.
From January 2012 to September 2013, Karatokus submitted fraudulent bids stating that Diamond would provide parts manufactured in the United States, when in fact, the items were manufactured in Turkey. Karatokus admitted that in March 2012, he submitted a false bid to provide the DoD with replacement parts for the Hercules C-130 aircraft. Based on Karatokus’ false bid, Diamond Parts was awarded the contract, which was valued at $10,350. Shipping records showed that the parts were sent from Turkey on Sept. 25, 2012, to a packaging and shipping company in Clifton, New Jersey. The parts were subsequently provided to the DoD on Oct. 10, 2012. DoD testing later revealed that the parts had dimensional nonconformities, exhibited poor workmanship and lacked critical markings which could result in a safety issue. As a result, the parts were suspended from use.
The mail fraud count to which Karatokus pleaded guilty is punishable by a maximum penalty of 20 years in prison and a $250,000 fine. As part of the plea, Karatokus must pay restitution of $641,454, representing the funds paid to him pursuant to the fraudulent contracts. Sentencing is scheduled for July 15, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the leadership of Special Agent in Charge Craig W. Rupert, and special agents of the Department of Homeland Security, Homeland Security Investigations, Counter Proliferation Investigations, under the supervision of Special Agent in Charge Kevin Kelly, with the investigation leading to today’s plea.
The government is represented by Assistant U.S. Attorney Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Timothy R. Anderson Esq., Red Bank, New Jersey
Former Ohio State Trooper Sentenced to 60 Months in Prison for Coercing Female Motorists to Engage in Sexual Acts for Lenient TreatmentRead the Press Release
A former trooper with the Ohio State Highway Patrol was sentenced today in Columbus, Ohio, to 60 months in federal prison for coercing four female victims to engage in sexual acts in exchange for lenient treatment in connection with potential criminal cases and traffic tickets.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, Superintendent of the Ohio State Highway Patrol (OSP) Colonel Paul A. Pride and Licking County Prosecutor Kenneth W. Oswalt made the announcement. U.S. District Judge Michael H. Watson of the Southern District of Ohio imposed the sentence.
Bryan D. Lee, 31, of Lancaster, Ohio, pleaded guilty on Oct. 29, 2014, to four counts of violating the civil rights of female motorists and one count of engaging in cyber stalking. Lee served as an OSP Trooper from approximately January 2006 until October 2013. As part of his plea, Lee admitted that he violated the civil rights of four female victims by coercing them in his official capacity to commit sexual acts, some of which he photographed, in exchange for his agreement not to file criminal charges or issue traffic infractions against the victims or their friends. Lee further admitted that he engaged in sexual contact with certain victims while they were under arrest and restrained in handcuffs. Lee also harassed and threatened some of the victims, including sending threatening electronic messages to one individual who he pulled over twice during a one-month period.
This case was investigated by the Columbus office of the FBI’s Cincinnati Division and OSP. The case was prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio. Also assisting in the investigation was Fairfield County Special Prosecutor Martin Frantz.
Former Ohio State Trooper Sentenced to 60 Months in Prison for Coercing Female Motorists to Engage in Sexual Acts for Lenient TreatmentRead the Press Release
WASHINGTON – A former trooper with the Ohio State Highway Patrol was sentenced today in Columbus, Ohio, to 60 months in federal prison for coercing four female victims to engage in sexual acts in exchange for lenient treatment in connection with potential criminal cases and traffic tickets.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, Superintendent of the Ohio State Highway Patrol (OSP) Colonel Paul A. Pride and Licking County Prosecutor Kenneth W. Oswalt made the announcement. U.S. District Judge Michael H. Watson of the Southern District of Ohio imposed the sentence.
Bryan D. Lee, 31, of Lancaster, Ohio, pleaded guilty on Oct. 29, 2014, to four counts of violating the civil rights of female motorists and one count of engaging in cyber stalking. Lee served as an OSP Trooper from approximately January 2006 until October 2013. As part of his plea, Lee admitted that he violated the civil rights of four female victims by coercing them in his official capacity to commit sexual acts, some of which he photographed, in exchange for his agreement not to file criminal charges or issue traffic infractions against the victims or their friends. Lee further admitted that he engaged in sexual contact with certain victims while they were under arrest and restrained in handcuffs. Lee also harassed and threatened some of the victims, including sending threatening electronic messages to one individual who he pulled over twice during a one-month period.
This case was investigated by the Columbus office of the FBI’s Cincinnati Division and OSP. The case was prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio. Also assisting in the investigation was Fairfield County Special Prosecutor Martin Frantz.
Former Local 17 Business Agent Pleads Guilty to Misusing Dmv DatabaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – The United States Attorney’s Office announced today that Jeffrey A. Peterson, 51, of Freedom, NY, pleaded guilty to exceeding authorized access to the New York State Department of Motor Vehicles (NYS DMV) database before Senior U.S. District Court Judge William M. Skretny. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Anthony M. Bruce, who is handling the prosecution, stated that Peterson was employed as a business agent with Local 17 of the Operating Engineers International, AFL-CIO. As a business agent, the defendant had authority to access to the NYS DMV database for the limited purpose of determining if current Local 17 members had up to date commercial drivers’ licenses.
On April 25, 2005, Peterson accessed the NYS DMV database to determine the registered owner of a vehicle that appeared at a Local 17 picket line outside Portville, NY four days earlier on April 21, 2005. Such an inquiry was outside the scope of the agreement between Local 17 and the NYS DMV. This vehicle, as it turned out, belonged to the United States Department of Labor, Office of Inspector General and was being driven by a Department of Labor Special Agent. This incident was just one of multiple violations of the agreement which resulted in the NYS DMV denying Local 17 further access to the database.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, and Special Agents of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia of the New York Regional Office
Sentencing is scheduled for July 15, 2015 at 2:00 p.m. before Judge Skretny.
Former Instructor at Big Spring Correctional Center Sentenced to Six Months in Federal Prison and Remanded into CustodyRead the Press Release
LUBBOCK, Texas — A former instructor at the Big Spring Correctional Center (BSCC), who admitted smuggling contraband into the facility, selling it, and then lying about it to federal investigators, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Ronald Craig Maxwell, 44, of Big Spring, Texas, was sentenced to six months in federal prison this morning by U.S. District Judge Sam R. Cummings. Maxwell pleaded guilty in October 2014 to an Information charging one count of making false statements and aiding and abetting. Judge Cummings remanded Maxwell to the custody of the U.S. Marshal following this morning’s hearing.
In a related case, BSCC inmate, Lorenzo Salgado, 53, pleaded guilty to one count of misprision of a felony and was sentenced last month to serve six months in prison on the conviction. Salgado admitted he concealed the fact that Maxwell smuggled contraband in to him.
According to documents filed in the cases, on July 31, 2013, BSCC officials conducted a search of Maxwell’s office in the prison and discovered 30 packs of tobacco. Maxwell was a contract teacher from Howard College who taught at BSCC. Salgado was one of his students.
On August 2, 2013, Special Agents with the Office of the Inspector General (OIG), Investigations Division, Department of Justice, interviewed Maxwell, who denied that he had smuggled any contraband into the prison or received any money, or anything else, from inmates or family or friends of inmates. Instead, Maxwell stated that he had smuggled tobacco out of the BSCC when bags of what he believed to be marijuana or tobacco dropped from the ceiling into his office at the prison.
Further investigation revealed that several inmates had established a relationship with Maxwell, and that he was smuggling contraband to them in exchange for money. Maxwell eventually confessed that he had intentionally provided a false statement to the OIG Special Agents, and he admitted that he had indeed smuggled tobacco and alcohol into the BSCC for inmate Salgado. He further stated that he had smuggled alcohol and approximately 150-200 bags of Buglar tobacco, and he was paid at least $4,500 for the contraband.
The Department of Justice Office OIG conducted the investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Former Fresno Police Department Deputy Chief and Six Others Indicted for Drug TraffickingRead the Press Release
FRESNO, Calif. — A federal grand jury indicted former Fresno deputy police chief Keith Foster and six others today, charging them with a variety of drug trafficking offenses, United States Attorney Benjamin B. Wagner announced.
In addition to Keith Foster, 51, the indictment includes charges against Randy Flowers, 48; Iran Dennis “Denny” Foster, 44; Rafael Guzman, 41; Jennifer Donabedian, 35; and Sarah Ybarra, 37, all of Fresno; and Ricky Reynolds, 30, of Shasta Lake. All defendants are scheduled to be arraigned on the indictment at 1:30 p.m. on Friday, April 10, 2015.
The indictment charges Keith Foster with participating in three separate conspiracies to distribute different controlled substances over the course of the past year. Keith Foster is charged with conspiring with Randy Flowers to distribute oxycodone. They are charged individually in four separate counts to distribute, or possess with the intent to distribute oxycodone. Flowers is further charged with being a felon in possession of three firearms.
Keith Foster and Rafael Guzman are charged with conspiring to distribute heroin. Keith Foster is also charged with conspiring with Reynolds, Donabedian, Ybarra and Denny Foster to distribute marijuana. Reynolds is separately charged with manufacturing marijuana, and both Reynolds and Denny Foster are charged individually in various counts alleging distribution of marijuana. Denny Foster is also charged with being a felon in possession of a firearm. Each defendant is charged in at least one count with using a cellphone in furtherance of a drug trafficking offense. Finally, Denny Foster and Guzman are charged with conspiring to distribute methamphetamine, cocaine and heroin.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. U.S. Attorney Wagner expressed his appreciation for the hard work done by the FBI and ATF investigators in the course of the investigation. Assistant United States Attorneys Melanie L. Alsworth and Dawrence W. Rice are prosecuting the case.
If convicted, the defendants face a statutory maximum penalty of 20 years in prison and a $1 million fine for the counts charging controlled substances other than or in addition to marijuana, a maximum of five years in prison and a $250,000 fine for the marijuana-only trafficking offenses, four years in prison and a $250,000 fine for using a cellphone to facilitate the commission of a felony, and a maximum penalty of 10 years in prison and a $250,000 fine for being a felon in possession of a firearm. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Florida State University Finance Professor Indicted for EmbezzlementRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury returned an indictment charging former Florida State University Finance Professor, James S. Doran, 39, of Boulder, Colorado, with embezzlement. The indictment, which was unsealed today, was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, between May 2010 and March 2011, Doran, while employed as an Assistant Professor of Finance at Florida State University, embezzled more than $650,000 in funds held by FSU. The arraignment is scheduled for April 24 at 10:00 a.m. before Judge Charles A. Stampelos at the United States Courthouse, in Tallahassee, Florida.
The case is being investigated by the United States Secret Service, the Florida State University Police Department, and the Florida State University Office of Inspector General Services. It is being prosecuted by Assistant United States Attorney Jason R. Coody.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Corrections Supervisor at Gallup-McKinley Adult Detention Center Sentenced for Sexually Assaulting Female Inmates in His CustodyRead the Press Release
ALBUQUERQUE – John Greene, 70, a former captain at the Gallup-McKinley Adult Detention Center (GMADC), was sentenced today on charges related to sexual assaults of female inmates in his custody.In Nov. 2014, Greene pled guilty to three counts of violating each of three victims’ rights to bodily integrity by engaging in sexual contact against their will.Greene also pled guilty to two counts of making material false statements to the FBI when he denied touching the breasts of one female inmate and having personal contact with another female inmate.Greene was sentenced to five years of federal probation.
According to court documents, Greene admitted that in his capacity as a captain at GMADC, he had regular access to female inmates when he accompanied them to court hearings, transported them to other facilities, and had them brought to his office.This regular access gave him the opportunity to engage in unwanted sexual contact with three different women in Dec. 2008 and Jan. 2009.Greene committed these acts, knowing it was wrong, against the law, and without the victims’ consent, but he did so anyway for his own gratification.
Greene also admitted that he lied to the FBI both when he denied touching the breasts of one of the woman in his custody for whom he was charged with touching in count one.He also lied when he denied having personal contact with yet another woman in his custody, not already listed in the indictment.
This case was investigated by the Gallup Resident Agency of the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorney Holland S. Kastrin for the District of New Mexico and Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Former Cambridge Resident Convicted of Swindling Money through Prep School Admissions BusinessRead the Press Release
BOSTON – The owner and operator of a prep school admissions business was convicted yesterday in U.S. District Court in Boston in connection with his role in embezzling funds.
Mark J. Zimny, 43, was convicted by a federal jury on five counts of wire fraud, five counts of unlawful money laundering, two counts of filing false federal tax returns and one count of bank fraud. The jury acquitted Zimny on an additional count of bank fraud. U.S. District Court Judge Rya W. Zobel scheduled sentencing for July 9, 2015.
Zimny owned and operated a business called IvyAdmit Consulting Associates that claimed to assist students in obtaining admission to elite American prep schools, colleges and universities. In 2008, Zimny defrauded a couple from Hong Kong of more than $650,000 by promising that if they provided him large funds to give to prep schools in New England for "development contributions," he could influence admissions decisions to the schools on behalf of the couple’s two children. Rather than delivering the funds to the schools as he promised, however, Zimny embezzled the funds for his own purposes.
Zimny was found guilty of tax violations for underreporting the gross receipts of IvyAdmit for tax years 2008 and 2009 in personal tax returns filed with the IRS.
Furthermore, Zimny defrauded Mt. Washington Bank (now part of East Boston Savings Bank) by providing the bank with false information, including fictitious tax returns that over reported his receipts from IvyAdmit, to support his application for a mortgage loan.
The charges of wire fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release and a $250,000 fine on each count; the charges of money laundering provide for a sentence of no greater than 10 years in prison, two years of supervised release and a $250,000 fine on each count; the charge of bank fraud provides for a sentence of no greater than 30 years in prison, five years of supervised release and a $1 million fine; the charges of filing false tax returns provides for a sentence of no greater than three years in prison, one year of supervised release and a $250,000 fine on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Victor A. Wild of Ortiz’s Economic Crimes Unit and Giselle J. Joffre of Ortiz’s Civil Division.
Former CEO of Local University Pleads Guilty to Submitting False Documents to Department of Homeland SecurityRead the Press Release
SAN JOSE- Jerry Wang, the Chief Executive Officer of Herguan University in Sunnyvale, California, pleaded guilty today in federal court to submitting false documents to the Department of Homeland Security (DHS), announced United States Attorney Melinda Haag and Tatum King, acting special agent in charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
Jerry Wang, 34 of Santa Clara, was indicted July 24, 2012, on 15 charges arising out of a visa fraud scheme in connection with Herguan University. The superseding indictment filed October 30, 2014, alleges that, starting in July 2007, Wang and others caused Herguan to submit fraudulent documents to the DHS Student and Visitor Exchange Program (SEVP) in support of a petition to admit foreign students. Wang was charged with conspiracy to commit visa fraud, in violation of 18 U.S.C. § 371; aiding and abetting visa fraud, in violation of 18 U.S.C. §§ 1546; aiding and abetting unauthorized access of a government computer, in violation of 18 U.S.C. § 1030(a); use of false documents, in violation of 18 U.S.C. § 1001(a)(3); and aggravated identity theft, in violation of 18 U.S.C. § 1028A.
Today, Wang pleaded guilty to one false document count, specifically submitting a fraudulent Academic Warning Letter to DHS, in violation of 18 U.S.C. § 1001(a)(3). In so doing, he admitted participating in the scheme to commit visa fraud, and that the scheme involved more than 100 immigration-related documents known as “Forms I-20.” Wang further admitted aiding and abetting the unauthorized access of a DHS computer database.
As part of his plea, Wang agreed to be sentenced to a term of imprisonment between three months and two years, as well as to forfeit $700,000, representing fraud proceeds and the value of property used to facilitate his crimes.
Wang’s sentencing hearing is scheduled for September 14, 2015 at 1:30 p.m. before the Honorable Edward J. Davila, U.S. District Judge, in San Jose. Any sentence will 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. Attorneys Hartley M. K. West and Maia T. Perez are prosecuting the case with the assistance of Helen Yee, Natachiana Williams, Rosario Calderon, and Trina Khadoo. The prosecution is the result of an investigation by Document and Benefit Fraud Task Force (DBFTF) overseen by HSI. The DBFTF is a multi-agency task force that coordinates investigations related to fraud schemes involving immigration documents and benefits.
Former Bookkeeper for Veterans Services Organization Charged with Fraud, Tax OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned a 10-count indictment today charging CYNTHIA TANNER, 53, of Darien, with fraud and tax evasion offenses stemming from her alleged embezzlement of approximately $800,000 from a Connecticut-based veterans services organization.
As alleged in the indictment, TANNER was employed as a bookkeeper for the National Veterans Service Fund (“NVSF”) located in Darien. The stated mission of the NVSF was to provide “case managed social services and limited medical assistance to Vietnam and Persian Gulf War veterans and their families, with a focus on families with disabled children.” From approximately January 2009 through June 2014, TANNER used approximately $800,000 in NVSF funds to pay various personal expenses for her and her family members. She also altered records to conceal her scheme and by falsely claiming that the stolen monies were being paid to veterans in need.
The indictment further alleges that TANNER failed to report $794,768.47 in embezzled income on her 2009 through 2013 federal tax returns, resulting in a tax loss of $270,026.
The indictment charges TANNER with five counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count, and five counts of tax evasion, an offense that carries a maximum term of imprisonment of five years on each count.
TANNER has been detained on related state charges since her arrest on June 2, 2014.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and s defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is assigned to Senior U.S. District Judge Warren W. Eginton in Bridgeport.
This investigation is being conducted by the U.S. Secret Service, Internal Revenue Service – Criminal Investigation Division, and Darien Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Federal Inmates Sentenced for ContrabandRead the Press Release
ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that two federal inmates have been sentenced to serve additional federal jail time after they possessed and attempted to possess cell phones and tobacco while housed at the United States Penitentiary Lee and the adjoining Satellite Prison Camp.
Fernando Glenn, 32, and Robert Wilson, 40, were sentenced in the United States District Court for the Western District of Virginia in Abingdon on March 24, 2015, for possession of contraband and attempt to possess contraband.
Glenn, who at the time he committed the offense was serving an aggregate 120-month term of imprisonment for possession with intent to distribute cocaine base and possession of a firearm in furtherance of a drug trafficking crime arising out of the United States District Court for the Eastern District of Missouri, was sentenced to 12 months and a day of federal incarceration for his possession of cell phones and tobacco at the United States Penitentiary Lee’s adjoining Satellite Prison Camp.
Wilson, who is currently serving a 240-month term of imprisonment for possession of a firearm by a convicted felon arising out of the United States District Court for the Eastern District of Texas, was sentenced to an additional 24 months of federal incarceration for his attempt to possess cell phones and tobacco at the United States Penitentiary Lee.
According to evidence provided by Special Assistant United States Attorney Debbie Stevens, in 2014, Glenn and Wilson arranged for cell phones and tobacco to be dropped off near the United States Penitentiary Lee’s Satellite Prison Camp. Glenn then retrieved the contraband and took steps to have the cell phones and tobacco introduced into the United States Penitentiary Lee for possession by Wilson.
The investigation was handled by the Federal Bureau of Investigation and the Special Investigative Unit of the Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Federal Inmates Sentenced for Conspiracy to Possess with Intent to Distribute HeroinRead the Press Release
ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that two federal inmates currently serving federal prison sentences have been sentenced to serve additional federal time after they conspired to possess with the intent to distribute heroin while housed at the United States Penitentiary Lee.
Rafaiel Ivey, 38, and Trent Antwine, 50, were sentenced in the United States District Court for the Western District of Virginia in Abingdon on February 20, 2015, for conspiracy to possess with intent to distribute heroin.
Ivey, who is currently serving a 188-month term of imprisonment for possession of a firearm by a convicted felon arising out of the United States District Court for the Northern District of Georgia, was sentenced to an additional 84 months of federal incarceration for his role in the conspiracy to have heroin introduced into the United States Penitentiary Lee for distribution within the prison.
Antwine, who is currently serving a 188-month term of imprisonment for drug conspiracy arising out of the United States District Court for the District of Alaska, was sentenced to an additional 48 months of federal incarceration for his role in the conspiracy.
According to evidence provided by Special Assistant United States Attorney Debbie Stevens, in October 2011, Ivey and Antwine arranged for a visitor to bring heroin into the visiting room of the United States Penitentiary Lee for further distribution within the prison.
The investigation was handled by the Federal Bureau of Investigation and the Special Investigative Unit of the Bureau of Prisons. Special Assistant United States Attorney Debbie Stevens prosecuted the case for the United States.
Falls Church Man Sentenced to Six Years in Prison for Receiving and Possessing over 10,000 Child Pornography FilesRead the Press Release
Used eDonkey peer-to-peer network, Usenet Newsgroup to download child pornography
ALEXANDRIA, Va. – Ralph Freeman, 54, of Falls Church, Virginia, was sentenced today to six years in prison, followed by 15 years of supervised release, for receiving and possessing thousands of child pornography files that he downloaded from online networks.
Freeman was found guilty on January 2, 2015, following a bench trial that concluded in November 2014. According to court documents, Freeman used the eDonkey peer-to-peer network and Usenet Newsgroup to download child pornography. More than 2,900 still-image files and 180 video files of suspected child pornography were found on a desktop, and more than 9,000 images were found on an external hard drive at Freeman’s residence. Freeman viewed, accessed, received, and downloaded child pornography files between 2005 and 2013.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Washington, D.C., made the announcement after sentencing by U.S. District Judge James C. Cacheris.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorneys Matthew Gardner and Tracy Doherty-McCormick prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-322.
Fairview Man Sentenced to 22 Years for Drug and Gun CrimesRead the Press Release
BILLINGS – In a hearing in Billings today, U.S. District Judge Susan Watters sentenced Ryan Edward Lee, 32, of Fairview, to 270 months in prison followed by 5 years supervised release in connection to his November 2014 guilty plea to conspiracy to possess with the intent to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking offense.
In pleadings filed at the time of the guilty pleas, Assistant U.S. Attorney Bryan Whittaker told the court that from November 2013 to January 9, 2014, agents of the U.S. Drug Enforcement Administration and the Montana Division of Criminal Investigation investigated drug trafficking in the Bakken Fields, including allegations of methamphetamine distribution in and around Sidney, Montana, in Richland County. Using informants and law enforcement controlled exchanges, agents observed Lee deliver methamphetamine to another individual on two separate occasions.
After the first sale, Lee was pulled over by the Montana Highway Patrol for traffic violations. Lee provided false identification and received a warning for the traffic violations.
After the second sale, Montana Highway Patrol again conducted a traffic stop of Lee’s vehicle. Following a pat down search of the defendant, law enforcement found $2,500 in cash in Lee’s pocket. Once placed in the back of the patrol car, Lee kicked out a window and attempted to escape by fleeing on foot. After a chase, Lee was apprehended. During a search of Lee’s vehicle, law enforcement officers discovered a metal flip container with a digital scale and approximately 2 oz. of methamphetamine among other items and drug paraphernalia behind Lee’s driver’s seat. They also discovered, lodged between the seat and center console, a loaded .380 semi-automatic pistol. A trace on the handgun revealed that Lee had purchased it several months earlier using a false identification and a false name—the same stolen identity he used multiple times with the Montana Highway Patrol.
In addition, after his arrest and while in custody in Yellowstone County Detention Facility, it was discovered that Lee had attempted an escape by breaking out the window of his cell and that he had been chipping away the wall outside the window for at least three months.
The prosecution was part of Project Safe Bakken, a cooperative effort between federal and state prosecutors and federal, state, local, and tribal law enforcement agencies in Montana and North Dakota. Drug crimes in the Bakken area have increased dramatically since the oil boom began in the region several years ago. Federal prosecution has been a priority of U.S. Attorney Michael Cotter as a way to assist state, county, and city authorities with the substantially increased demand on law enforcement resources. Parole has been abolished in the federal system and although Lee may be entitled to good time credit of up to 15% of his sentence, the sentence imposed will be the sentence served.
The investigation was conducted by the Drug Enforcement Administration, Montana Division of Criminal Investigations, Montana Highway Patrol and the Federal Bureau of Investigation.
Detroit Police Lieutentant, Officer Charged with Robbery, Extortion, Drug and Firearm OffensesRead the Press Release
A Detroit Police lieutenant and an officer were indicted yesterday on charges of robbing drug dealers and stealing drugs and money obtained in police searches, U.S. Attorney Barbara L. McQuade announced today.The indictment was sealed until this morning.
Joining McQuade in the announcement were Special Agent in Charge Paul M. Abbate of the Federal Bureau of Investigation’s Detroit Division, Chief James E. Craig of the Detroit Police Department and Special Agent in Charge Joseph P. Reagan, Drug Enforcement Administration, Detroit Field Division.
Lieutenant David Hansberry, 34, and Officer Bryan Watson, 46, each were charged with conspiracy to possess with intent to distribute narcotics, conspiracy to interfere with commerce by robbery, multiple counts of interference with commerce by robbery and extortion, possession with intent to distribute five or more kilograms of cocaine and two counts of possessing a firearm in furtherance of a crime of violence and drug trafficking crime. A third defendant, Kevlin Omar Brown, 45, was also charged with one count of interference with commerce by robbery and extortion.
According to the indictment, the defendants arranged drug transactions with civilians, including confidential sources, so that they could rob and extort them. The defendants allegedly carried out traffic stops and fake arrests, and then stole drugs, money and personal property from their victims. Hansberry and Watson are charged with using their status as law enforcement officers to assist in their scheme, by driving police vehicles, activating lights on their police vehicles, wearing police-issued attire, displaying official badges and carrying firearms. Hansberry and Watson also allegedly identified themselves as police officers to coerce their victims into complying with their demands and to encourage their victims to flee, leaving behind illegal drugs, money, and personal property. The indictment also alleges that Hansberry and Watson failed to log into evidence money and drugs seized during searches of homes. Instead, they split the proceeds and arranged for the sale of the drugs, sharing the proceeds generated by the sales.
“Officers who violate the law cannot be tolerated because effective law enforcement requires public trust,” McQuade said. “We applaud Chief Craig’s commitment to root out any officers who tarnish the badge.”
“Special Agent in Charge Abbate stated, “Every police officer who would dishonor the badge must know that they will be held accountable under the law. As law enforcement officers, we owe a tremendous duty to the public we serve, and therefore must be held to the highest standards of trust and integrity. The FBI and its law enforcement partners are committed to ensuring that these fundamental principles are fully maintained and enforced without compromise.”
“The vast majority of the men and women of the Detroit Police Department are honest and hard-working, but these defendants betrayed their oath and their fellow officers,” said Chief Craig. “We are committed to the highest standards of integrity, and we will remove any officers who do not live up to those high standards.”
Hansberry and Watson were previously assigned to the now-disbanded Narcotics Section of the Detroit Police Department. Since October 2014, they have been on suspension by the Detroit Police Department.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The case was investigated by the by the FBI Detroit Area Public Corruption Task Force, in collaboration with the Detroit Police Department’s Office of Internal Affairs and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Sheldon Light and Louis P. Gabel.
Deportation Officer Arrested for Harboring an Illegal Alien and Lying to U.S. Immigration AuthoritiesRead the Press Release
NEWARK, N.J. – A deportation officer with Immigration and Customs Enforcement (ICE) surrendered this morning to special agents of ICE’s Office of Professional Responsibility on charges of harboring his girlfriend, an illegal alien, and making false statements about his ownership of a hair salon, U.S. Attorney Paul J. Fishman announced.
Arnaldo Echevarria, 37, of Somerset, New Jersey, is charged by criminal complaint with one count of harboring an illegal alien and one count of making false statements. Echevarria is scheduled for an initial appearance and bail hearing this afternoon before U.S. Magistrate Judge Steven C. Mannion.
According to the criminal complaint unsealed today:
Echevarria was a deportation officer with ICE, a division of the U.S. Department of Homeland Security. In December 2012, Echevarria received permission from his superiors at ICE to open a hair salon in West Orange, New Jersey. Echevarria certified to ICE that the hair salon would not conflict with ICE matters and would not involve illegal aliens. However, Echevarria employed his girlfriend at the time, an illegal alien, to manage the salon. Echevarria’s girlfriend had entered the United States illegally, using the name and identification of an individual in Puerto Rico to obtain a Pennsylvania identification card.
Echevarria allegedly knew his girlfriend and another salon employee resided in the United States illegally. Prior to opening the hair salon, Echevarria queried the name and date of birth of his girlfriend’s alias in various law enforcement databases. After opening the salon, Echevarria allegedly ensured that his girlfriend’s illegal status remained a secret by signing the lease for her apartment and by placing her cable and electric bills in his name. In addition to driving his girlfriend and other salon employees to and from the salon each day, Echevarria also paid the employees in cash and never asked them to fill out employment eligibility paperwork.
The charges of harboring an illegal alien and making false statements are each punishable by a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of ICE, Office of Professional Responsibility, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Defense counsel: Michael Koribanics Esq., Clifton, New Jersey
echevarria_arnaldo_complaint.pdf
Defendants Charged in Separate Fraud Schemes that Resulted in Thousands of Identities Stolen and Used to Commit Fraud SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity (DEO), Thomas Caul, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Steve Steinberg, Chief, Aventura Police Department, J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), announce the filing of federal charges against 42 defendants in 25 separate cases, dealing with tens of thousands of stolen identities and millions of dollars stolen from victims and government agencies through fraudulent schemes. Today’s cases reaffirm the joint federal, state and local commitment to the prosecution of perpetrators who steal, sell and use personal identification information to commit identity theft fraud schemes.
According to the Federal Trade Commission, Florida had the highest rate of identity theft in the United States in both 2013 and 2014. While identity theft in Florida ranks highest in the United States, the identity theft rate in Miami has reached near epidemic proportions. Florida’s rate of 186.3 identity theft complaints per 100,000 residents – the highest in the United States – is dwarfed by the Miami rate of 316.2 complaints per 100,000 residents.
In an attempt to combat the rising wave of stolen identity tax refund scams, and armed with recent directives from the Department of Justice’s Tax Division, making prosecutions faster and easier, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force) in August 2012. With the escalating spread of fraud offenses, the Strike Force has broadened the scope of its focus and is now identified as the Identity Theft Strike Force.
The members of the Strike Force, and participating agencies, include the United States Attorney’s Office, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Federal Bureau of Investigation (FBI), Miami Field Office, U.S. Secret Service, U.S. Postal Inspection Service (USPIS), Miami Division, Social Security Administration, Office of Inspector General (SSA-OIG), United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Aventura Police Department, North Miami Beach Police Department, Miami-Dade Police Department, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Broward Sheriff’s Office (BSO), Sunrise Police Department, Coral Springs Police Department, Miramar Police Department, North Miami Police Department, City of Miami Police Department, Ohio Department of Taxation, Michigan Unemployment Insurance Agency, and Texas Workforce Commission.
Since the inception of the Strike Force, we have charged 359 defendants, who were responsible for approximately $314 million in intended losses and in excess of $125 million in actual SIRF fraud loss.
The U.S. Attorney’s Office and the IRS have also attacked this problem at its root by revoking so called “electronic filing identification numbers” or EFIN numbers, which allow individuals to file tax returns on behalf of others.
United States Attorney Wifredo A. Ferrer stated, “Identity theft is a virus that has engulfed our community. Evolving fraud schemes are sweeping the state, utilizing the stolen personal identification information of our residents and individuals throughout the country. Theft of personal information is no less egregious when it is perpetrated by offenders who operate fraud schemes from their own homes and places of business. We are committed to stopping the fraud and encourage institutions to establish protective measure that will ensure personal information is not jeopardized. Our Office thanks the countless members of federal, state and local law enforcement agencies and other governmental entities who work together to fight these pervasive crimes and hold the offenders accountable.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, stated, “Stolen Identity Refund Fraud is an ongoing battle that requires constant, joint and aggressive law enforcement actions to continue protecting the citizens of Florida. Today’s announcement should serve as a strong warning to those who are considering similar conduct. Law enforcement is serious about investigating identity theft crimes, and IRS Criminal Investigation is committed to working with the U.S. Attorney’s Office and our partners on the Identity Theft Strike Force to combat the fraud.”
DEO Executive Director Jesse Panuccio said, “Identity theft and public-benefits fraud have reached crisis levels. This fraud harms those whose identities are stolen, robs the social safety net of resources meant for hardworking Floridians, imposes significant costs on taxpayers, and undermines public trust. Our goal at DEO is to set a national standard in preventing, detecting, and helping to prosecute this fraud. We are making great strides within the Reemployment Assistance program, and in the last year our new fraud detection measures uncovered and halted 97,000 fraudulent claims, worth more than $400 million.”
“The epidemic of identity theft and tax fraud has hit South Florida hard in the past few years. The creation of the South Florida Identity Theft Strike Force has allowed the law enforcement members involved in the task force to work together, on many different levels, to combat this epidemic” said Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “These arrests should send a message to criminals that we will bring them to justice.”
“HSI will not tolerate criminals taking advantage of our citizens through identity theft schemes and we will continue to work hand-in-hand with our law enforcement partners to bring them to justice,” said Alysa D. Erichs, Special Agent in Charge of Homeland Security Investigations Miami. “Identity theft causes distressing hardships for many citizens and has a devastating impact on the entire community.”
J.D. Patterson, Director of Miami Dade Police Department stated, “It is extremely important for law enforcement agencies to work in collaboration with each other and our communities to address crimes that span the jurisdictional boundaries of one agency and impact thousands of our citizens. The Miami-Dade Police Department remains committed to working together with fellow law enforcement agencies in the fight against fraud.”
Today, U.S. Attorney Ferrer, joined by members of the Identity Theft Strike Force, announce the most recent results of their investigative efforts. The cases announced today include:
1. United States v. Densom Beaucejour and Winzord Beaucejour, Case No. 15-20190-CR-Ungaro
On March 24, 2015, Densom Beaucejour, 22, and Winzord Beaucejour, 21, both of Miami Gardens, were charged in a six-count indictment for their participation in a conspiracy to use stolen identities to commit unemployment insurance fraud, state income tax fraud, and federal income tax fraud.
According to public documents, the investigation in this case began in January 2015, when a local police officer reported that he/she was the victim of identity theft and that a fraudulent unemployment insurance claim had been filed in his/her name. Subsequent investigation by federal law enforcement revealed numerous instances of suspected unemployment insurance fraud connected to the defendants’ residence.
On March 11, 2015, law enforcement agents executed a federal search warrant at the defendants’ residence. Inside several bedrooms in the defendants’ home, law enforcement found numerous sheets of paper, ledgers, and other documents with personal identifying information (“PII”) – including names, dates of birth, and Social Security numbers – of more than 1,000 individuals. Agents also discovered three handguns (one of which had been reported stolen), $8,600 in cash, and several credit cards embossed with names of individuals that did not appear to live at the defendants’ residence. Densom Beaucejour admitted to law enforcement that he possessed the PII found in his bedroom and had used some of it to commit fraud.
The indictment charges the defendants with engaging in a conspiracy between February 2, 2014, and March 11, 2015, to use stolen PII to file fraudulent Florida unemployment insurance claims, fraudulent federal income tax returns, and fraudulent State of Ohio income tax returns. The fraudulent claims and refund amounts -- ranging between $275 and $7,581 -- are alleged to have been filed from the defendants’ home in Miami Gardens.
The defendants were charged with conspiracy to use unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
2. United States v. Cora Eutsay, Case No. 15-2250-MJ-Turnoff
Cora Eutsay, 50, of Miami, was charged by criminal complaint with trafficking in and using unauthorized access devices to obtain anything of value, aggregating $1,000 or more in a one year period.
As alleged in the complaint, Eutsay worked for CareerSource South Florida in the Opa Locka office. During her employment, Eutsay sought and inappropriately obtained access to the Department of Children and Families’ ACCESS Florida System, a State database containing the personally identifying information, including names, dates of birth, and social security numbers (“PII”) of individuals who applied for public benefits in Florida. Eutsay’s employment credentials were used on several occasions to run queries in the ACCESS Florida database for the PII of persons who had previously applied for public benefits. Eutsay then sold the PII of more than 200 individuals.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, USSS, BSO, and DEO. The case is being prosecuted by Assistant U.S. Attorney Jaime Galvin.
3. United States v. Kyron Jonathon Nedd, Case No. 15-2426-MJ-Goodman
On April 1, 2015, Kyron Jonathan Nedd, 22, of Miami Gardens, was charged by criminal complaint for his participation in a stolen identity tax fraud scheme.
According to the criminal complaint, between February 1, 2014 and July 18, 2014, a total of 379 fraudulent federal income tax returns, for tax year 2013, were filed with the Internal Revenue Service (“IRS”) from Nedd’s residence in Miami Gardens. The returns claimed $843,295 in tax refunds. The IRS refunded approximately $64,557 for those fraudulently filed tax returns.
On February 12, 2015, a federal search warrant was executed at Nedd’s residence, where agents discovered items containing personal identification information (“PII”) - names, dates of birth and social security numbers - of hundreds of individuals. Inside Nedd’s bedroom, law enforcement found a safe with numerous debit cards and computer-generated printouts from the State of Florida Department of Children and Families (“DCF”) database. The printouts contained the name they contained the name “C.Eutsay” at the top of the documents as well as her ID number and system identification number for “Cora Eutsay,” who, as noted above, was charged in a separate criminal complaint in Case No. 15-2250-MJ-Turnoff, with selling PII that she had unlawfully obtained from the DCF database. IRS-CI agents have since determined that there were numerous instances in which the PII contained on the DCF printouts matched up with fraudulent returns filed from Nedd’s residence.
According to the complaint, federal law enforcement agents interviewed Nedd after serving the federal search warrant. Nedd admitted to law enforcement that he electronically filed the income tax returns from his house and that the returns were false and done without the taxpayers’ permission.
The criminal complaint charges the defendant with use of one more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the IRS-CI, USPS-OIG, DOL-OIG, and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
4. United States v. Earnest Thad Etienne and Wilbert Champagne, Case No. 15-20054-CR-Ungaro
On January 30, 2015, Earnest Thad Etienne, 29, and Wilbert Champagne, 20, both of North Miami Beach, were charged in a five-count indictment for their participation in a conspiracy to commit state income tax fraud using stolen identities.
According to the indictment and other court records, on September 26, 2014, law enforcement executed a state search warrant at Etienne’s residence pursuant to an investigation of a homicide that took place in front of Etienne’s home. During the search, law enforcement officers discovered fifteen prepaid debit cards embossed with various individuals’ names, a thumb drive, ammunition, and $7,750 in cash in Etienne’s bedroom. In another room in the residence, law enforcement discovered additional electronic devices and a bank debit card embossed with the name of an individual who did not appear to live in the residence. Several firearms and additional ammunition were found in the back yard of the home.
Subsequent investigation by federal law enforcement revealed that the thumb drive discovered in Etienne’s room contained the personal identifying information (“PII”) – including names, dates of birth, and social security numbers – of more than 650 individuals with addresses in Ohio. In addition, Etienne used at least one of the debit cards found in his residence to withdraw money associated with fraudulent state of Ohio income tax refunds.
The indictment alleges that between January 14, 2014, and September 26, 2014, Etienne and his co-conspirators caused fraudulent income tax returns to be filed in the State of Ohio seeking tax refunds in amounts ranging between $7,543 and $11,515. The conspirators caused the State of Ohio to pay the fraudulent tax refunds to pre-paid debit cards in other individuals’ names or to a bank account in one of the co-conspirator’s names. The indictment alleges that on several occasions, Etienne withdrew money from the bank account in his co-conspirator’s name that contained fraudulent income tax refunds from the State of Ohio.
Etienne and Champagne were charged with conspiracy to use unauthorized access devices and aggravated identity theft. Etienne was also charged with possession of fifteen or more unauthorized access devices. Champagne was also charged with use of unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
5. United States v. Leonce V. Jeudy, Case No. 15-60037-CR-Bloom
On March 3, 2015, Leonce V. Jeudy, 24, of Plantation, was charged in a six count indictment for his participation in a scheme utilizing stolen identities to commit income tax, unemployment, and credit card fraud.
According to court documents, on January 7, 2015, a detective with the Sunrise Police Department initiated a traffic stop of a vehicle being driven by Jeudy. After smelling the odor of marijuana emanating from inside the vehicle, the detective conducted a search of the car and found a loaded handgun, ammunition, approximately twenty credit cards in various names, new iPhones and iPads, bank records of an unrelated individual, and four receipts for Visa debit cards purchased earlier that day for $2,000. Jeaudy admitted that he had purchased the debit cards and electronic devices with the credit cards that he had obtained fraudulently.
Police officers obtained a state search warrant for Jeudy’s residence. During the execution of the warrant, inside Jeudy’s bedroom officers found more than 100 credit and debit cards in the names of various individuals including Jeudy, numerous documents with the names, dates of birth, and social security numbers (“PII”) of different individuals, and various electronic devices including five computers, three thumb drives, and seven cellular telephones. The officers also recovered from Jeudy’s residence an AK-47 rifle, hundreds of rounds of different caliber ammunition, MDMA and Methamphetamine, several smaller packages of powder and crack cocaine, and other drug paraphernalia.
Subsequent forensic analysis by federal law enforcement revealed more than 8,000 sets of PII were found on the recovered thumb drives. In addition, an analysis revealed that eighteen of the recovered debit cards had received approximately $30,000 in fraudulent income tax refunds and two of the debit cards were associated with fraudulent unemployment insurance claims.
The indictment charges the defendant with six counts of possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, trafficking and using unauthorized access devices, possession of unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Sunrise Police Department, IRS-CI, the DOL-OIG, and USSS. The case is being prosecuted by Assistant U.S. Attorney Jonathan Kobrinski.
6. United States v. Jesney Eliassaint, Case No.15-2378-MJ-Simonton
On March 23, 2015, Jesney Eliassaint, 33, of Miami, was charged by criminal complaint for his involvement in an identity theft scheme.
According to the criminal complaint, in February 2014, officers with the Miami Gardens Police Department performed a traffic stop of a car for having an expired vehicle registration. Inside the car were several iPads and sheets of paper containing (“PII”) – including names, dates of birth, and Social Security numbers - of various individuals. A subsequent investigation by the USSS revealed that there were approximately 137 different names, with corresponding PII, printed on the sheets, some of which had the word “Patient” written across the top. The USSS determined that the PII found in the vehicle originated from a data breach at Aventura Hospital. The breach had been executed from Eliassaint’s computer in the hospital’s medical billing department. According to Aventura Hospital, computer records revealed that Eliassaint had conducted approximately 4,000 inquiries for patients by their date of birth.
During the investigation, USSS agents interviewed Eliassaint, who admitted to conducting the searches and printing out patient records containing the PII while he was working as a contract employee for an outside company. Eliassaint also told USSS agents that he would take screen shots of the patient records and then print them out to avoid detection. Eliassaint stated that he sold the sheets of paper, containing PII, for approximately $100 per sheet, to several individuals. Eliassaint estimated that he made a total of $2,000 for selling the patients’ information.
The defendant is charged with access device fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the USSS. The case is being prosecuted by Assistant U.S. Attorney Robert J. Emery.
7. United States v. Bradley Lee Ritter, Case No. 15-20215-CR-Gayles
On Tuesday, March 31, 2015, Bradley Lee Ritter, 23, of North Miami, was charged in a five-count indictment in a scheme to steal unemployment insurance payments by filing fraudulent claims using stolen personally identifying information of numerous Florida residents.
According to court documents, numerous unemployment insurance claims filed in both the State of Florida and the State of Texas were connected to Ritter’s residence. On March 18, 2015, a federal search warrant was executed at the defendant’s home. In one bedroom, along with Ritter’s personal items, law enforcement discovered numerous sheets of paper, ledgers, and other documents containing the personally identifying information (“PII”) - names, dates of birth, and Social Security numbers - of approximately 1,000 individuals. Law enforcement contacted three individuals whose PII was found in Ritter’s home and had unemployment claims submitted in their names. All three individuals revealed that they did not file the claim or authorize anyone to use their identity.
The indictment charges the defendant with use of unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, DEO, the USPIS, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.
8. United States v. Renet Blanc, Case No. 15-2357-MJ-O’Sullivan
On Thursday, March 19, Renet Blanc, 21, of North Miami, was charged by criminal complaint for his participation in an unemployment insurance fraud scheme.
According to the complaint and other public documents, Renet Blanc was involved in a scheme that utilized the stolen identities of Michigan and Florida residents to file fraudulent unemployment insurance claims in both those states. The State of Michigan Unemployment Insurance Agency then sent unemployment payments, by direct deposit, to Blanc’s bank account in Florida. Blanc was identified on bank surveillance photos withdrawing some of the unauthorized funds.
On Wednesday, March 18, 2015, a federal search warrant was executed at Blanc’s residence. In one bedroom, along with Blanc’s personal items, law enforcement discovered numerous sheets of paper, ledgers, and other documents containing the personally identifying information (“PII”) - including names, dates of birth, and Social Security numbers - of various individuals who did not appear to live at Blanc’s residence. In particular, law enforcement discovered in excess of 50 unique sets of PII on notebook paper, W-2 employment forms, and patient records. Law enforcement also discovered the debit card Blanc was captured using at the bank to withdraw fraudulent unemployment insurance funds.
The complaint charges the defendant with possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, SSA-OIG, DEO, USPIS, ICE-HSI, NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.
9. United States v. Ronet Blanc, Case No. 14-2458-MJ-McAliley
On Tuesday, April 7, 2015, Ronet Blanc, 24, of North Miami, was charged by criminal complaint with participating in an unemployment insurance fraud scheme.
According to the complaint and other public documents, Ronet Blanc was involved in a scheme that utilized stolen identities of Michigan and Florida residents to file fraudulent unemployment insurance claims in both those states. The State of Michigan Unemployment Insurance Agency (“UIA”) sent the unemployment insurance payments by direct deposit to Blanc’s bank account in Florida. The complaint alleges that Blanc was identified withdrawing some of the unauthorized funds, in bank surveillance photographs.
On Wednesday, March 18, 2015, officers executed a federal search warrant at Blanc’s residence. In one bedroom, along with Blanc’s personal items, law enforcement discovered a laptop computer. A subsequent forensic search of the computer revealed Blanc’s resume and a spreadsheet containing the personal identification information (“PII”) – including names, dates of birth, and social security numbers - of at least 3,000 individuals.
The complaint charges the defendant with possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, SSA-OIG, DEO, USPIS, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.
10. United States v. Luis Daniel Lopez Morales and Rigo Octavio Lopez, Case No. 15-2428-MJ-Goodman
On April 1, 2015, Luis Daniel Lopez Morales, 19, and Rigo Octavio Lopez, 25, both of North Miami, were charged by criminal complaint for their participation in a fraudulent tax refund scheme.
The complaint alleges that between January 31, 2014, and July 8, 2014, a total of 494 fraudulent income tax returns for tax year 2013 were filed with the Internal Revenue Service (“IRS”) from the defendants’ home in North Miami. The fraudulent returns claimed approximately $237,092 in tax refunds. The IRS paid out approximately $49,902 for the fraudulent returns.
On February 11, 2015, a federal search warrant was executed at the home of Lopez and Lopez Morales. Federal Agents recovered dozens of items containing personal identifying information (“PII”), including handwritten ledgers with account and PIN numbers, handwritten documents with names and dollar amounts, numerous pre-paid debit cards, lists from the Florida Department of Motor Vehicles (“FLDMV”) and print-outs of “Student Information” from the Miami-Dade Public School system. The school print-outs contained the names, dates of birth, and social security numbers of current or former Miami-Dade students. Some of the PII listed in the print-outs corresponded with fraudulent income tax returns that had been filed from the defendants’ residence.
Both Lopez and Lopez Morales admitted to law enforcement that they conspired to file fraudulent income tax returns from their home.
The complaint charges the defendants with conspiracy to use one or more access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
11. United States v. Antwan Lamar Edwards, et. al, Case No. 15-20174-CR-Cooke
On March 19, 2015, Antwan Lamar Edwards, 26, of Miramar, and Dennis Franks, Jr., 27, of Miami, were charged by indictment for their participation in a scheme to file fraudulent tax returns using stolen personal identity information.
According to the indictment, the defendants were the registered managers of a tax preparation business called All-Star Tax Solutions, LLC (“ASTS”), a Florida corporation with its principal place of business in Miami. Over the course of almost two years, the defendants used ASTS’s Electronic Filing Identification Number (“EFIN”) and their respective Preparer Tax Identification Numbers (“PTINs”) to e-file fraudulent tax returns using stolen personal identification information and fabricated W-2 statements. The indictment alleges that the defendants filed the false returns from their residences and claimed refunds for the 2011 tax year in amounts ranging between $563 and $6,515, which were paid by check and direct deposit onto debit cards mailed to ASTS.
The thirty-one count indictment charges the defendants with conspiracy, submitting false claims to the government, wire fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Christopher Browne.
12. United States v. Christopher M. Mack, Case No. 15-2317-MJ-O’Sullivan
On March 16, 2015, Christopher M. Mack, 30, of Miami, was charged by criminal complaint for operating a scheme to skim credit card numbers, manufacture counterfeit credit cards, and file false federal income tax returns.
According to the criminal complaint, the defendant engaged in a scheme to skim credit card numbers from the customers of a South Beach restaurant. Pursuant to the investigation and the execution of a search warrant at Mack’s residence, officers discovered a magnetic stripe encoder, a credit card skimmer, over 100 counterfeit credit cards embossed with Mack’s name, three spiral notebooks filled with the personal identifying information of over 500 individuals, and loose sheets of paper filled with over 1,000 social security numbers.
Pursuant to the complaint, a Miami Dade Police Department (“MDPD”) detective selected for further inspection fifty entries from the hundreds listed in the spiral notebooks. The detective discovered that the fifty entries represented a total of $232,344.00 in filed returns. Further investigation revealed that individuals listed in the entries had false tax return filings associated with the discovered PII. Of those false filings, four resulted in paid disbursements.
The complaint charges the defendant with possessing fifteen or more counterfeit or unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the MDPD and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
13. United States v. Yvenante Achille, Case. No. 15-20229-CR-Lenard
In April 3, 2015, defendant Yvenante Achille, 30, of Miami, was charged by indictment for her participation in an identity theft tax fraud scheme.
According to the indictment, Achille was an employee of a community health care provider. As part of her regular employment, the defendant had access to patient records, which contained personal identifying information (“PII”). Between August 22, 2013, and March 26, 2104, the defendant stole the PII of more than 9,000 current and former patients. Achille provided the stolen PII, without the patients authorization or permission, to a co-conspirator. Using a patient’s PII, the co-conspirator filed a fraudulent tax return.
The indictment charges the defendant with conspiracy to commit access device fraud, possession of fifteen or more unauthorized access devices, and possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
14. United States v. John Mackenley Cesar, et. al, Case No. 15-60071-CR-Zloch
On April 2, 2015, John Mackenley Cesar, 26, of Miami, Chedlor Dorilus, 22, of Hollywood, Lawrence Bernadel (“Bernadel”), 22, of Tallahassee, Ariel Ronet Walker, 22, of Tallahassee, and Lubens Inalien, a/k/a “Lubaby,” 29, of Fort Lauderdale, were charged in a six count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the indictment, from January 29, 2014, through April 17, 2014, in Fort Lauderdale and Tallahassee, Florida, the defendants used an Electronic Filing Identification Number (“EFIN”), in the name of Canaan Plus Tax, Inc. of Miami Gardens, to file fraudulent tax returns with the Internal Revenue Service (“IRS”). The defendants used the personal identification information (“PII”) of hundreds of individuals, including PII obtained from the Texas Department of Public Safety, to file the fraudulent tax returns. After the fraudulent tax returns were received by the IRS, the defendants arranged to have the tax refund payments deposited onto pre-paid debit cards. After the monies were deposited onto the cards, they were used by the defendants to purchase items and make withdrawals from ATMs in Broward County and elsewhere. The indictment alleges that through the submission of the fraudulent tax returns, the defendants sought to obtain approximately $800,000 in tax refunds.
The defendants were charged with conspiracy to defraud the United States, conspiracy to possess fifteen or more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
15. United States v. Kiesha Adderly Mitchell and Melissa Pearl Davis, Case No. 15-20131-CR-Gayles
On March 5, 2015, Kiesha Adderly Mitchell, 36, and Melissa Pearl Davis, 32, both of Miami, were charged in a seventeen count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the indictment, in 2009 the defendants applied to the Internal Revenue Service (“IRS”) for Electronic Filing Identification Numbers (“EFIN”) in the name of corporate or fictitious entities they controlled, including K. Mitch Services, Inc. and Pebbles Tax & Notary Services. The defendants submitted false and fraudulent federal income tax returns to the IRS, using the names and Social Security numbers of other individuals, without the taxpayers’ authority. The defendants filed the false and fraudulent tax returns using EFINs, issued in the names of K. Mitch Services Inc. and Pebbles Tax & Notary Services, among others. After the tax returns were received by the IRS, various financial institutions would authorize refund anticipation loans (“RALs”) in the names of fraudulent tax return applicants. The refunds were to be loaded onto debit cards controlled by the defendants. The defendants then used those debit cards for their personal use and enrichment.
The indictment alleges that the defendants submitted fraudulent tax returns for tax years 2011 through 2013, seeking refunds in amounts ranging between $1,122 and $5,830.
The defendants were charged with conspiracy to defraud the government with false claims, filing false, fictitious, and fraudulent claims, possession of fifteen or more unauthorized access devices, and aggravated identity theft
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
16. United States v. Alexander Paul, Case No. 15-20236-CR-Lenard/Goodman.
On April 7, 2015, Alexander Paul, 23, of North Miami, was charged in a two count information for his participation in an identity theft scheme.
According to the information, on or about June 5, 2014, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred the means of identification, specifically, the name and date of birth, of an individual with the initials “C.F.”
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
17. United States v. Ashley Leroy, Case No. 15-60009-CR-Bloom
On January 22, 2015, Ashley Monique Leroy, 26, of Davie, was charged in a three count indictment for her participation in an identity theft scheme.
According to the indictment, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred the means of identification, specifically, the name and date of birth, of two individuals.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI and the City of Miramar Police Department. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
18. United States v. Bash-Dee Antoine Barlatier, Case No. 15-20111-CR-Middlebrooks
On February 27, 2015, Bash-Dee Antoine Barlatier, 28, of North Miami Beach, was charged in a three count indictment for his participation in an unemployment insurance fraud scheme.
According to the indictment, Barlatier used the names and social security numbers of other individuals to obtain anything of value aggregating $1,000 or more. The defendant also used the names and debit cards of two individuals in relation to that offense.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
19. United States v. Christ Lamarre, et al., Case No. 15-20109-CR-King
On February 27, 2015, Christ Lamarre, 24, Antonio Hernandez, 21, and Christopher Carre, 19, all of North Miami Beach, were charged in a five-count indictment for their participation in a conspiracy to commit unemployment insurance fraud.
According to the indictment, the co-conspirators used the names and social security numbers of other individuals to file fraudulent unemployment insurance claims. The co-conspirators caused the fraudulent unemployment insurance benefits to be electronically deposited into a bank account they controlled. The defendants then withdrew fraudulent funds from the bank account, using debit cards issued in the name of another individual.
The defendants are charged with conspiracy to commit access device fraud, access device fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
20. United States v. Rashad Aquil Emmons and Adrian Claude Green, Jr., Case. No. 15-60057-CR-Bloom
On March 20, 2015, Rashad Aquil Emmons, 25, of Marietta, GA, and Adrian Claude Green, Jr., 24, of Miami Gardens, were charged in a nine-count indictment for their participation in a stolen identity tax refund scheme.
According the indictment, the defendants engaged in a conspiracy pursuant to which illicit federal tax refunds were deposited by the IRS onto prepaid debit cards. The indictment alleges that from March 17, 2012, through April 5, 2012, Emmons and Green used a number of those prepaid debit cards, registered in the names of various individuals, to purchase a 2007 BMW and a 2009 Mercedes Benz at a car dealership in Broward County.
The defendants are charged with conspiracy to commit access device fraud, access device fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Aventura Police Department. The case is being prosecuted by Assistant United States Attorney Tonya Long.
21. United States v. Junior St. Fleurose, Case No. 15-20155-CR-Moore
On March 12, 2015, Junior St. Fleurose, 29, of Miami, was charged with five counts of theft of government funds.
According to the indictment, from March 30, 2010, through June 16, 2011, Fleurose received a total of approximately $112,665.95 in fraudulent tax refunds via U.S. Treasury checks or electronic funds transfers issued to various payees.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and USPIS. The case is being prosecuted by Assistant U.S. Attorneys Aileen Cannon and Ilham Hosseini.
22. United States v. Michelson Jeancy, Case No. 15-20230-CR-Huck
On April 3, 2015, defendant Michelson Jeancy, 35, of Miami, was charged by indictment for his participation in an identity theft tax fraud scheme.
According to the indictment, Jeancy was an employee of a Miami-Dade College. As part of his regular employment, the defendant had access to student records, which contained personal identifying information (“PII”). Between February 2013, and June 2104, the defendant stole the PII of current and former Miami Dade College students. Using the students’ PII, the defendant and his accomplices filed fraudulent tax returns.
The indictment charges the defendant with wire fraud, aggravated identity theft and possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the City of Aventura Police Department, IRS-CI, and FBI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
23. United States v. Brandi Mary Janice Stroman, et. al, Case No. 15-60045-CR-Zloch
On March 10, 2015, Brandi Mary Janice Stroman, 30, of Oakland Park, Dezman Dunbar Zama, 34, of Fort Lauderdale, Cornelius Craig Bosket, 32, of Fort Lauderdale, and Jerrod Dashon Bosket, 26, of Oarlando, were charged in a twenty-four count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the indictment, from November 2009, to March 28, 2014, the defendants obtained income tax refunds from the U.S. Department of the Treasury in the names of unsuspecting identity theft victims. After coconspirators obtained the personal identification information (“PII), including names, social security numbers, and dates of birth of real persons, the defendants and their coconspirators used the PII to electronically file fraudulent tax returns with the Internal Revenue Service (“IRS”) claiming tax refunds to which they were not entitled. The defendants then, in part, used their personal bank accounts to receive the fraudulently obtained tax refunds by direct deposit or through depositing U.S. Treasury tax refund checks to those accounts. The defendants withdrew the money using a variety of methods including making ATM withdrawals, purchasing items or paying their bills, and moving the funds to other accounts.
The charges in the indictment include conspiracy to commit wire, mail, and bank fraud, access device fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
24. United States v. Thomas Jerry, III, Case No. 15-20228-CR-Scola
On April 3, 2015, defendant Thomas Jerry III, 31, of Miami, was charged by indictment for his participation in an identity theft scheme.
According to the indictment, on or about July 24, 2014, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred, possessed and used the means of identification, specifically, the name and social security number, of two individuals.
The indictment charges the defendant with possession of fifteen or more unauthorized access devices, aggravated identity theft, and being a felon in possession of firearms and ammunition.
Mr. Ferrer commended the investigative efforts of the City of Aventura Police Department, IRS-CI, FBI, ATF, and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
If convicted, the defendants face a possible maximum statutory sentence of ten years in prison for trafficking in or using one or more unauthorized access devices during a one-year period and by such conduct obtains anything of value over $1,000; ten years in prison for stealing government funds; and two years in prison consecutive to any other term for aggravated identity theft.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Dallas Woman Faces up to 15 Years in Federal Prison After Jury Finds She Lied in Bankruptcy FilingsRead the Press Release
DALLAS — Following a two-day trial before U.S. District Judge Sam A. Lindsay, a federal jury has convicted a Dallas woman on three felony offenses stemming from bankruptcy petitions she filed, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Julie Grant, a/k/a Juliana Jacobs Grant, Juliana Okwue Jacobs Grant and Juliana Okwuenu, 49, was convicted on three counts of making false statements under penalty of perjury. Each count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. Grant, who was placed on electronic monitoring, is scheduled to be sentenced by Judge Lindsay on September 21, 2015.
Grant, using two different Social Security Numbers, filed voluntary bankruptcy petitions on October 3, 2008, March 2, 2009, July 6, 2009, December 16, 2009, and August 9, 2011. In some of the petitions, Grant was represented by counsel, and in some, she acted pro se (without counsel.)
The government presented evidence that in the August 9, 2011, petition, Grant fraudulently concealed two bankruptcy cases she filed in the Northern District of Texas in October 2008 and March 2009. Grant also falsely stated in the December 16, 2009, petition and the August 9, 2011, petition, that she had only used one Social Security Number, when, in fact, she had used at least one other Social Security Number in other bankruptcy petitions that she knew she was obligated to disclose.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the recent Bankruptcy Fraud Initiative within the Northern District of Texas. As an example, in late January 2015, a Waxahachie, Texas, man, James Derek Howard, was sentenced to one year and one day in federal prison and was ordered to pay restitution after he pleaded guilty to a bankruptcy fraud offense.
Since May 2013, nine debtors have been charged in the district with various felony offenses, and to date, seven of these defendants have been convicted. One defendant is awaiting trial and one defendant remains a fugitive.
The Office of the Inspector General, Social Security Administration investigated. Assistant U.S. Attorney David Jarvis prosecuted.
Corpus Christi Man Convicted of Possessing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Winfred Eric Clanton, 68, of Corpus Christi, has pleaded guilty to possessing child pornography, announced U.S. Attorney Kenneth Magidson.
The investigation began when Corpus Christi Police received a cyber-tip from the National Center for Missing and Exploited Children (NCMEC) about an email address associated with child pornography. According to the tip, America Online (AOL) contacted NCMEC and advised them that AOL had discovered emails containing child pornography. Investigators determined Clanton was the Internet service subscriber associated with the email address.
In November 2013, investigators obtained and executed a search warrant at Clanton’s residence, at which time they seized various electronic devices which forensic analysis later revealed 115 images of child pornography depicting prepubescent girls unclothed and posing in a sexually explicit manner. Clanton provided a statement to law enforcement admitting to having accessed the child pornography and having a sexual interest in children.
U.S. Magistrate Judge Jason B. Libby accepted the guilty plea today and sentencing is set for July 16, 2015, before U.S. District Judge Nelva Gonzales Ramos. Clanton faces up to 10 years imprisonment and a $250,000 maximum fine as well as the possibility of up to life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Clanton was permitted to remain on bond pending sentencing.
Corpus Christi Police Department – Internet Crimes Against Children Task Force and the FBI investigated the case.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Convicted Sex Predator Sentenced to 180 Years in Federal PrisonRead the Press Release
DALLAS — Timothy Rinehart, 36, of Dallas, was sentenced today by U.S. District Judge Jane J. Boyle to serve a total of 180 years in federal prison, following his guilty plea in August 2014 to a superseding indictment charging a multitude of child pornography offenses, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Specifically, Judge Boyle sentenced Rinehart to the maximum statutory sentence for each of his counts of conviction. Rinehart pleaded guilty to one count of production of child pornography, one count of attempted transportation of child pornography, one count of transportation of child pornography, two counts of possession of child pornography, and one count of a registered sex offender committing a felony offense involving a minor.
A convicted sex offender, Rinehart was sentenced to 51 months in federal prison in August 2006, after pleading guilty to one count of possession of child pornography in the Eastern District of Texas.
In April 2012, Rinehart used John Doe, a four-year-old male minor, to engage in sexually explicit conduct and then used his cell phone to take photos of that conduct. In late May 2012, Rinehart used his computer, the Internet and peer-to-peer file sharing to share images of minor boys engaged in sexually explicit conduct. In early May 2013, Rinehart again used peer-to-peer file sharing to share images of minors engaging in sexually explicit conduct. On October 5, 2012, Rinehart possessed a cell phone and an external hard drive that each contained images of minors involved in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Contractor Charged with Bribing Former City of Portland Smart Parking Meter ManagerRead the Press Release
PORTLAND, Ore. – Billy J. Williams, Acting U.S. Attorney for the District of Oregon, today announced the unsealing of a criminal Information charging George R. Levey, 58, of Tarpon Springs, Florida, with honest services wire fraud in connection with Levey allegedly bribing Ellis McCoy, the former City of Portland Bureau of Transportation Manager in charge of Portland’s smart parking meter program.
The Information alleges that from 2002 through July 2011, Levey, formerly an executive with Schlumberger Industries, Inc. and later the owner and president of Cale Parking Systems, USA, Inc., bribed McCoy with golf trips, gambling trips, vacation trips, $56,675 in phony consulting fees paid to EKM Consulting, a business McCoy set up to receive and disguise these payments, and the promised payment of $137,100 when McCoy ended his employment with the City of Portland.
It is further alleged that Levey bribed McCoy so McCoy would speak favorably about Levey’s companies to other cities interested in buying smart parking meters. Additionally, McCoy would disclose to Levey information he learned from counterparts in other cities that would help Levey’s companies secure smart parking meter contracts with those cities, and would help Levey’s companies secure, keep, and expand contracts to supply smart parking meters to the City of Portland. In return for the bribes, McCoy gave Levey advice about how to draft contract proposals to be submitted to the City of Portland, disclosed to Levey internal deliberations of the Portland City Council and the Portland Bureau of Transportation, and testified before the Portland City Council in favor of awarding contracts to Levey’s companies.
“The citizens of every city in Oregon are entitled to honesty and transparency every time public money is spent,” said Acting U.S. Attorney Billy J. Williams. “The bribing of public officials involved in contracting corrupts the contracting process, harms honest contractors and citizens, and diminishes public trust in local government. This office, working with its law enforcement partners, makes it a priority to aggressively investigate and prosecute those who bribe public officials and the public officials themselves.”
Ellis McCoy has pleaded guilty to accepting bribes from previously undisclosed contractors and is scheduled to be sentenced on May 27, 2015.
This case was investigated by the FBI and the IRS-Criminal Investigation Division. The case is being prosecuted by Assistant U. S. Attorney Seth D. Uram.
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Columbian Citizen Sentenced to 25 Months Federal ImprisonmentRead the Press Release
ALBANY, NEW YORK – Walter Elicer Luna Cayseda, 49, of Bronx, New York, was sentenced Wednesday in United States District Court in Utica for making a false statement and aggravated identity theft, announced United States Attorney Richard S. Hartunian and United States Customs Acting Director of Field Operations Rose Hilmey, Buffalo, New York. United States District Court Judge David N. Hurd sentenced Luna Cayseda to 25 months imprisonment, followed by a three year period of supervised release. Upon completion of his sentence, the United States Department of Homeland Security will process the defendant for removal from the country.
These charges stemmed from the defendant’s conduct at the Champlain Port of Entry on August 26, 2014. At that time the defendant provided authorities with a false name telling them he was a United States citizen born in Puerto Rico. He made these statements during an immigration inspection at the Port of Entry. The defendant also used a New York State driver’s license that contained his picture but listed a false name. The defendant is actually a citizen of Columbia. He was previously removed from the United States to Columbia in 1997.
The case was investigated by the United States Department of Homeland Security, Customs and Border Protection, Champlain, New York. The case was prosecuted by Assistant United States Attorney Edward P. Grogan.
Columbia County Man Pleads Guilty to Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 57-year-old Berwick man pleaded guilty today before Senior U.S. District Court Judge A. Richard Caputo in Wilkes-Barre, to producing child pornography.
According to United States Attorney Peter Smith, the defendant, Rickie Sitler, admitted to using a four-year-old child to engage in sexually explicit conduct for the purpose of producing images of such conduct. Sitler committed the crime between late November to early December 2014.
Sitler was indicted by a federal grand jury in March 2015, as a result of an investigation by agents of Homeland Security Investigations, the Berwick Police Department, and the Columbia County District Attorney’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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 30 years imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Judge Caputo scheduled sentencing for July 13, 2015.
Colorado Man Pleads Guilty to Federal Sex Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – A Colorado man pleaded guilty in federal court in Albuquerque, N.M., this morning to sex trafficking charges, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
David Justin Lynch, 39, of Colorado Springs, Colo., entered a guilty plea to a two-count indictment charging him with coercing a woman to travel in interstate commerce for prostitution, and traveling in interstate commerce for the purpose of promoting prostitution. Under the terms of his plea agreement, Lynch will be sentenced to six years in federal prison to be served consecutive to the four years he already has served in state custody based on related-state charges.
On March 24, 2011, a federal criminal complaint was filed charging Lynch with coercing a woman to travel in interstate commerce to engage in prostitution. Thereafter, on July 27, 2011, an indictment was filed charging Lynch with coercing the victim to travel in interstate commerce for prostitution and traveling in interstate commerce for the purpose of promoting prostitution. The criminal complaint and indictment remained under seal until Oct. 2014, while state prosecutors proceeded with the prosecution of related-state charges against Lynch. On April 7, 2015, Lynch was arrested on the federal charges after he was transferred from state custody to federal custody.
According to court documents, the FBI and APD initiated a federal human trafficking investigation into Lynch on March 22, 2011, the day after Lynch was arrested by APD on state charges. The investigation revealed that between Dec. 2010 and March 2011, Lynch coerced the victim to travel to Colorado, Idaho, Kansas, Missouri and New Mexico for the purpose of engaging in prostitution. Lynch and the victim remained in each location for a week or two, staying in different hotels, where the victim performed sexual acts with customers who responded to advertisements placed by Lynch on a website commonly used to post ads for prostitution.
Court documents reflect that initially, the victim was required to pay fifty percent of her earnings to Lynch but beginning in Jan. 2011, Lynch took all of the victim’s earnings, giving her only enough money to pay for the hotel room, food and basic necessities. Also in Jan. 2011, Lynch verbally threatened the victim, who felt that she could not stop working as a prostitute for Lynch. In Feb. 2011, Lynch allegedly held a knife to the victim’s throat and threatened her because she was not making enough money and “wasn’t nice enough” to the customers.
Lynch and the victim were arrested by APD on March 21, 2011, after APD responded to an ad placed by Lynch on a website commonly used to post ads for prostitution. After her arrest, the victim told officers that she wanted to leave Lynch and stop working as a prostitute but was afraid that Lynch would “track her down and kill her” if she left. The victim said she felt coerced to engage in prostitution for Lynch because of his threats against her and his control of her earnings.
During today’s change of plea hearing, Lynch entered guilty pleas to both counts of the indictment. In his plea agreement, Lynch admitted that from Nov. 1, 2011 through March 21, 2011, he coerced the victim to travel in interstate commerce from Colorado to New Mexico and other places to engage in prostitution. Lynch also acknowledged that he traveled in interstate commerce to promote and facilitate prostitution.
Lynch remains in federal custody pending his sentencing hearing which has yet to be scheduled.
“Human trafficking causes unimaginable pain, desperation and despair, and the fear of violence and other reprisals all too often keep victims from reporting this heinous crime,” said U.S. Attorney Damon P. Martinez. “This prosecution sends a clear message that the United States will not tolerate modern-day slavery and will work tirelessly to restore the rights and dignity of the victims of human trafficking crimes.”
“Unfortunately, human trafficking continues to occur in our society, and the FBI is committed to combating this reprehensible crime wherever we find it,” said Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division. “I am proud of the work of the FBI Special Agents and Professional Support staff on this case, and I thank the U.S. Attorney's Office and the Albuquerque Police Department for their invaluable assistance. If you are the victim of human trafficking or have information about such a crime, I urge you to call the National Human Trafficking Resource Center at 1-888-373-7888.”
“The Albuquerque Police Department works closely with our law enforcement partners to proactively target predators involved in human trafficking,” said Chief Gorden Eden, Jr., of the Albuquerque Police Department. “Like the victim in this case, victims of human trafficking are exploited as a reusable commodity by those who force them to participate in the sex trafficking industry. APD is proud to work with the FBI and the U.S. Attorney’s Office to protect and rescue victims who are unable to defend themselves.”
This case was investigated by the Albuquerque office of the FBI and APD, and is being prosecuted by Assistant U.S. Attorneys Norman Cairns and Kimberly A. Brawley.
Clinton G. Todman, Jr. Indicted on Firearm ChargesRead the Press Release
St. Thomas, USVI – A federal grand jury today returned a four-count indictment charging Clinton G. Todman, Jr., 44, with federal and territorial firearm offenses, United States Attorney Ronald W. Sharpe announced. Todman was arrested on March 23, 2015 on a warrant issued by U.S. Magistrate Judge Ruth Miller. He was released on an unsecured $25,000 bond.
According to the indictment, at the time of his arrest, Todman possessed a Kel-Tec, .40 caliber pistol with its identifying marks obliterated. In 1991, Todman was convicted of possession of crack cocaine with intent to distribute. As a convicted felon, he is prohibited from possessing a firearm. The federal charges against Todman are: felon in possession of a firearm and possession of a firearm with an obliterated serial number. The territorial charges are: unauthorized possession of a firearm and possession of a firearm with an altered identification mark while driving. If convicted, Todman faces up to 10 years in prison on the federal counts. With respect to the territorial counts, he faces a minimum mandatory sentence of 15 years in prison and a maximum sentence of 20 years in prison.
United States Attorney Sharpe reminds the public that an indictment is merely a formalcharging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Nelson L. Jones.
Chicago Man Sentenced for Federal Drug Violations in East TexasRead the Press Release
LUFKIN, Texas – A 43-year-old Chicago man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Frederick Mitchell pleaded guilty on Dec. 19, 2014 to conspiracy to possess with intent to distribute cocaine and use of an interstate facility in aid of racketeering and was sentenced to 84 months in federal prison on Apr. 8, 2015 by U.S. District Judge Ron Clark.
According to information presented in court, on July 6, 2014, Mitchell and a co-defendant, Henry Korvette Bams, were stopped for a traffic violation by the Texas Department of Public Safety on US Highway 259 in Nacogdoches County, Texas. The officer conducted a search of the vehicle and seized approximately $253,341 in cash and a small quantity of marijuana. Both men were eventually released on bail on July 9, 2014. On July 22, 2014, Bams and Mitchell were stopped again for a traffic violation by Arkansas State Police in Hot Springs County, Arkansas, on Interstate Highway 30. The officer received consent to search the vehicle and discovered approximately ten kilograms of suspected cocaine located inside a hidden compartment within the vehicle. Two bank deposit slips were also discovered within the vehicle. On Aug. 1, 2014, agents with the Internal Revenue Service and the Drug Enforcement Administration executed a seizure warrant on the bank account and seized approximately $135,015.14 in suspected drug proceeds. Bams is awaiting trial on pending charges.
This case was investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, and the Texas Department of Public Safety, and prosecuted by Assistant U.S. Attorney Baylor Wortham.
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Chestertown Felon Sentenced to 10 Years in Prison for Obtaining Guns Through Straw Purchases and TheftRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Daniel P. Welch, age 36, of Crumpton and Chestertown, Maryland, to 10 years in prison followed by three years of supervised release. Welch, who was prohibited from possessing firearms because of his criminal record, obtained guns through straw purchases and theft.
“It is illegal to help a criminal get a gun,” said U.S. Attorney Rod J. Rosenstein.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Queen Anne’s County Sheriff R. Gary Hofmann III; Chief G. Adrian Baker of the Chestertown Police Department; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to his guilty pleas, Welch is a previously convicted felon and therefore is prohibited from possessing firearms. Welch and co-defendant Jonathan Sutton have known each other since they were small children. At Welch’s request, between January 29, 2011 and January 31, 2014, Sutton obtained six firearms for Welch through private sellers and through “straw purchases” by Sutton from a federally licensed firearms dealer. A “straw purchase” occurs when an individual, who is ineligible to lawfully purchase a firearm, such as a previously convicted felon, solicits another to conduct the transaction.
Welch admitted that on January 29, 2011, he and Sutton visited four ATMs in Stevensville, Maryland, near a federally licensed firearms dealer, and Welch withdrew approximately $1,700 in cash. Welch and Sutton then went to the firearms dealer and selected firearms for Sutton to purchase for Welch. Sutton purchased a Smith & Wesson MP5-22, a Mossberg Persuada 500, and a Century Arms SKS. Sutton completed the required forms indicating that he was the actual buyer of the firearms and was not acquiring the firearms for another person. On February 1, 2011, Sutton picked up the guns, which he then transferred to Welch. On February 11, 2011, Sutton purchased a Marlin rifle from the firearms dealer, again completing the required form and falsely indicting that he was buying the gun for himself. In 2012, Sutton acquired a Remington Arms 597 and a Ruger Single Six, both .22 caliber, through private purchases. Those guns were subsequently possessed by Welch.
Welch also admitted that on May 17, 2013, he broke into a neighbor’s home and stole an express pump action 20 gauge shotgun with a 21 inch barrel and other items. On June 14, 2103, officers with the Queen Anne’s County Sheriff’s Office executed a search warrant at Welch’s residence in Crumpton and recovered items Welch had stolen from the neighbor, including the shotgun. Welch had sawed off a portion of the barrel and removed the serial number. During the search, officers also located the two firearms Welch received from Sutton in 2012. A subsequent search of Welch’s residence recovered the Marlin rifle from Welch’s bedroom.
Jonathan M. Sutton, age 36, of Chestertown, Maryland, pleaded guilty to conspiring to unlawfully obtain firearms for a prohibited person and is scheduled to be sentenced on April 16, 2015, at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, Queen Anne’s County Sheriff’s Office, Chestertown Police Department and the Queen Anne’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Zachary A. Myers, who is prosecuting the case.
Caribou Man Pleads Guilty to Firearm ChargeRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373
Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that George D. LaCasse, 35, of Caribou, Maine, pleaded guilty today in U.S. District Court to unlawful possession of a firearm by a felon.Court records reveal that on May 23, 2014, LaCasse arranged for another person to purchase a 9mm pistol for him from Ben’s Trading Post in Presque Isle, Maine. LaCasse was at the Trading Post when the firearm was purchased. Witnesses saw him with the pistol. He admitted to others that he had a gun. Federal agents also recovered 9mm casings and other evidence that LaCasse had used the firearm for target practice. LaCasse was prohibited from possessing firearms because he had felony convictions in Massachusetts in 2009.
LaCasse faces up to ten years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Caribou Police Department.