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31 March 2015
Navajo Man from Beclabito Pleads Guilty to Federal Arson ChargeRead the Press Release
ALBUQUERQUE – Benjamin Joe Begay, Jr., 45, an enrolled member of the Navajo Nation who resides in Beclabito, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a federal arson charge.
Begay was arrested on Aug. 19, 2014, on a criminal complaint charging him with arson, and was indicted on that same charge on Aug. 26, 2014. According to court filings, Begay set fire to the residence he shared with his wife and children on July 31, 2014, following an argument with his family. The residence, its contents and a grey truck were a total loss to the fire.
During today’s proceedings, Begay admitted willfully and maliciously setting fire to the home he shared with his wife and family on July 31, 2014, on the Navajo Indian Reservation in San Juan County, N.M. At sentencing, Begay faces a statutory maximum penalty of life in prison and up to five years of supervised release. His sentencing hearing has yet to be scheduled.
This case was investigated by the Shiprock office of the Navajo Nation Division of Public Safety and the Farmington office of the FBI. This case is being prosecuted by Assistant U.S. Attorney Paul H. Spiers.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Nampa Woman Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE – Tara Noelle Rivera, 30, of Nampa, Idaho, pleaded guilty today in federal court in Boise to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Rivera was indicted on November 13, 2014.
According to court documents, Rivera admitted to selling methamphetamine to a police informant on three separate occasions in March 2014. Rivera also admitted to selling a 9 millimeter pistol to the informant. Rivera’s case is part of a larger long-term investigation by the Treasure Valley Metro Violent Crimes Task Force. The investigation focused on the “Norteno” Northside gang, which is active in Nampa and other parts of the Treasure Valley. Fourteen individuals were indicted on drug and gun charges as a result of the investigation.
Distribution of methamphetamine is punishable by up to 20 years imprisonment, a $1,000,000 fine, and at least three years of supervised release.
Sentencing is set for June 17, 2015, before Chief U.S. District Judge B. Lynn Winmill.
This case and the other related cases are the result of a joint investigation by theTreasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The cases are being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership, the Canyon County Prosecuting Attorney’s Office, and the State of Idaho to address gang crimes. The Treasure Valley partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Muskogee Woman Sentenced to 60 Months Probation for Concealing Person from ArrestRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JACLYN CAMPBELL, age 24, of Muskogee, Oklahoma was sentenced to 5 years of probation for Concealing Person from Arrest, in violation of Title 18, United States Code, Section 1071.
The charge is a result of an investigation by the United States Marshal Service. The defendant was indicted in November, 2014 and pled guilty in December, 2014.
The Indictment alleged that on or about October 2, 2014, in the Eastern District of Oklahoma, the defendant, JACLYN CAMPBELL, did willfully and knowingly harbor and conceal Joshua Allen Barnett, a person for whose arrest a warrant and process had been issued under the provisions of a law of the United States, so as to prevent the discovery and arrest of Joshua Allen Barnett, after notice and knowledge of the fact that a warrant and process had been issued for the apprehension of Joshua Allen Barnett, and which warrant had been issued on a felony charge.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Shannon Henson represented the United States.
Miami-Dade, Florida, Police Officer Admits Role in Cocaine Distribution ConspiracyRead the Press Release
NEWARK, N.J. – A former lieutenant with the Miami-Dade Police Department, Internal Affairs, today admitted his role in a narcotics conspiracy, including purchasing six firearms for a drug trafficking organization and smuggling those weapons through security checkpoints at the Miami International Airport, U.S. Attorney Paul J. Fishman announced.
Ralph Mata, 45, a/k/a “the Milk Man,” of Broward County, Florida, pleaded guilty before U.S. District Court Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of aiding and abetting a narcotics conspiracy, one count of conspiring to distribute cocaine and one count of engaging in monetary transactions in property derived from unlawful activity. Judge Wigenton continued Mata’s release on bail pending sentencing.
According to documents filed in this case and statements made in court:
From June 2012 through November 2012, Mata purchased at least six firearms from a gun store in Florida, which ultimately were provided to members of the Juan Arias Drug Trafficking Organization. Using his prior experience as a lieutenant assigned to the Miami International Airport, as well as his law enforcement contacts at the airport, Mata and others smuggled the six firearms through airport security checkpoints and onto a commercial airliner destined for the Dominican Republic.
Mata also provided advice, guidance and counsel to Juan Arias regarding the means and methods the drug trafficking organization should use to import and distribute cocaine. Mata transported narcotics proceeds for the organization.
He also engaged in monetary transactions in property derived from the sale of narcotics. On March 28, 2013, Mata traveled from Miami to New Jersey and received approximately $60,000 in narcotics proceeds from Juan Arias and others. Using a portion of that $60,000, Mata made separate $10,000 cash deposits at two different bank locations in Fort Lee, New Jersey. As payment for his assistance to the drug trafficking organization, Mata accepted a total of approximately $100,000 in cash and gifts from the Juan Arias drug trafficking organization.
The charges of aiding and abetting a narcotics conspiracy and conspiring to distribute cocaine each carry a minimum penalty of 10 years in prison, a maximum penalty of life imprisonment, and a maximum fine of $10 million. The money laundering charge is punishable by a maximum term of 10 years in prison and a $250,000 fine. As part of his plea, Mata also agreed to forfeit the $75,405.17 seized on April 9, 2014. Sentencing is scheduled for July 14, 2015.
U.S. Attorney Fishman credited special agents of the FBI’s Garret Mountain Resident Office, under the direction of Special Agent in Charge Richard M. Frankel in Newark; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea. He also thanked the Miami FBI, the Miami-Dade Police Department, the Miami-Area Corruption Task Force and the U.S. Immigration and Custom Enforcement’s Homeland Security Investigations, New York, for their assistance with the investigation.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorneys Mary E. Toscano and José R. Almonte of the Special Prosecutions Division in Newark, and Barbara Ward of the Office’s Asset Forfeiture and Money Laundering Unit.
Defense counsel: Jay V. Surgent Esq., Parsippany, New Jersey, and Bruce H. Fleisher Esq., Miami
Manhattan U.S. Attorney Announces Indictment of Former President of Law Enforcement Labor Union for Defrauding Union of FundsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Andriana Vamvakas, the New York District Director of the U.S. Department of Labor's Office of Labor Management Standards ("DOL-OLMS"), announced the indictment of former union president JOHN EARVIN for engaging in a fraudulent scheme to embezzle funds from the United Federation of Law Enforcement Officers (“UFLEO” or the “Union”). The UFLEO represents Special Inspectors employed by the Metropolitan Transportation Authority of New York (“MTA”). EARVIN was arrested today and will be arraigned later today in Manhattan federal court before Judge Gabriel W. Gorenstein. The case has been assigned to Judge Paul A. Engelmayer.
According to the allegations in the Indictment filed in Manhattan federal court yesterday:
From February 2007 through April 2010, EARVIN was the Union’s president, supervising the affairs of the Union and managing the Union’s finances, including through sole control of the Union’s bank account (the “Account”). Through his presidency, EARVIN allegedly perpetrated a scheme to defraud the Union by diverting Union dues payments deposited into the Account for his own benefit, principally by making hundreds of ATM withdrawals at off-track betting facilities and other locations and making personal use of the funds. In furtherance of the scheme, and to prevent its discovery, EARVIN, as alleged, repeatedly lied to Union members about the Account by, for example, claiming that he could not provide an accounting of funds to Union members because an independent auditor was reviewing the Union’s finances. As a result of the scheme, EARVIN is accused of defrauding the Union and its members of approximately $48,012.
EARVIN, 67, of New Rochelle, New York is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. The Indictment also seeks forfeiture of crime proceeds. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Preet Bharara thanked the DOL-OLMS for its work in the investigation.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Carrie H. Cohen and Jennifer Gachiri are in charge of the prosecution.
The charge contained in the Indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
U.S. v. John Earvin Indictment
Manhattan U.S. Attorney and FBI Assistant Director Announce Charges Against Founder of Non-Profit Organization for Defrauding Parents of Abducted ChildrenRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced charges against PETER SENESE, the Founding Director of the I CARE Foundation (“I CARE”), which advertises itself as a “self-funded non-profit organization dedicated to preventing child abduction and trafficking.” Since at least 2013, SENESE allegedly defrauded parents whose children were victims of international abduction by falsely representing that he, working with the worldwide resources of I CARE, could rescue their children and return to them to the United States in exchange for money for his purported rescue operation expenses. SENESE was arrested this morning in Brooklyn, New York, and will be presented later today before U.S. Magistrate Judge Gabriel W. Gorenstein.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Peter Senese fed a pack of lies to desperate parents by telling them, among other things, that he and his company could, for a price, locate and recover their internationally kidnapped children. In fact, he could do no such thing, but that didn’t stop him from allegedly repeatedly reaching out to the parents for more money to fund his non-existent rescue mission. This type of alleged fraud that preys on the especially vulnerable and desperate is a top priority for us, and we will work to ensure those who commit these outrageous crimes are held to strict account.”
FBI Assistant Director Diego Rodriguez said: “As alleged, Senese’s supposed self-funded corporation to prevent child abduction and trafficking turned out to be nothing more than a ruse. He allegedly preyed on the anguish of suffering families, left them open to be victimized a second time, and accepted their payments to fund his personal venture without ever having access to the worldwide resources of which he spoke. Fortunately, his journey ends today. The FBI and our law enforcement partners often work hand in hand on cases involving the mysterious disappearance of a child, and we will continue to protect the welfare of those faced with this terrible tragedy. ”
According to the allegations in the Complaint filed today in Manhattan federal court:
Through his websites (www.stopchildabduction.org and www.petersenese.com) and elsewhere, SENESE promotes I CARE as “a self-funded not-for-profit 501-C-3[sic] corporation” that “does not accept outside financial contributions and has reunited numerous internationally kidnapped children while preventing an exponentially larger number of children from abduction.” SENESE also represents that I CARE includes “some of the leading figures in the world dedicated to protecting children from abduction and trafficking” and that “there have been many, many children of international parental child abduction who have been reunited and returned home due directly to the great efforts, financial, legal, and investigative resources” of I CARE.
Between at least November 2013 and February 2015, SENESE specifically represented to victims that he could recover their children from other countries by working with a team of former members of the U.S. Army component Delta Force (“Delta Force”), of which SENESE claimed to have also been a member. SENESE repeatedly represented to one victim (“V-1”) that he could recover V-1’s child (“Child-1”) from India in a matter of weeks, but that he needed a few thousand dollars from V-1 to cover his operational expenses. In the months that followed, SENESE repeatedly represented that he was very close to recovering Child-1, appeared on a local radio program with V-1, and sent numerous text messages and emails stating, in part, that he was either in India or an unspecified “remote location” and that Child-1 would be returned to the United States in a matter of hours or days. During the same period, SENESE repeatedly asked for additional funds, typically ranging from $3,000 to $5,000 per month to cover his operational expenses.
In fact, SENESE has not traveled outside of the country for years. While SENESE represented that he was in foreign locations, he was actually in Miami, Florida; New York, New York; or Los Angeles, California. SENESE also has never had any affiliation with the United States military, and the children SENESE promised to recover have not been recovered.
SENESE, 49, of Brooklyn, New York, is charged with one count of wire fraud, which carries a maximum sentence of 30 years in prison. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding work of the FBI for its investigative efforts and ongoing support and assistance with the case.
The prosecution is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jaimie L. Nawaday is in charge of the case.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Peter Senese Complaint
Man Sentenced to 65 Months in Prison for Sexual Assault on Menominee ReservationRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that Avery A. Gomeyosh, (age: 36), of Green Bay, Wisconsin, was sentenced on February 16, 2015, to 65 months of imprisonment, followed by a 10 year term of supervised release. The sentence was the result of a guilty plea by Gomeyosh on October 21, 2014, to a federal indictment charging him with the aggravated sexual abuse of an adult female who was at the time incapable of appraising the nature of the conduct and physically incapable of declining participation in that sexual act
The investigation revealed that on May 31, 2014, Gomeyosh sexually assaulted an adult female, who was asleep at the time of the assault, at a residence on the Menominee Indian Reservation. Law enforcement officials interviewed Gomeyosh and he admitted that he sexually assaulted the victim.
This case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.
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Leader of Meth for Mail Ring Pleads Guilty to 16 Counts of Drug Dealing and FraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage man pled guilty in federal court in Anchorage to 16 counts of drug dealing and fraud.
Jonathon Escalante, a/k/a “Superman”, 45, of Anchorage, pled guilty in front of Chief United States District Court Judge Ralph R. Beistline.
According to pleadings filed in the case, from September 2013 through September 2014, Escalante was the leader of a mail theft ring in Anchorage. Escalante recruited others to help him commit the crimes of Possession of Stolen Mail, Bank Fraud, Credit Card Fraud, Aggravated Identity Theft, and Possession of a Counterfeit Security. Escalante and his co-conspirators used checks, credit cards and personal identification information stolen from the mail and from vehicle break-ins to obtain funds and merchandise to which they were not entitled. Escalante recruited his co-conspirators by providing them with methamphetamine and a portion of the items and cash obtained from the stolen checks and credit cards. Escalante and his co-conspirators obtained over $40,000 in cash and retail goods during the course of this scheme. The scheme covered all of Anchorage from Eagle River to Hillside, from the Jewel Lake area to Muldoon, and even as far south as Soldotna.
In addition to the mail theft ring, Escalante was also a drug dealer who sold methamphetamine throughout Anchorage. Escalante carried a 9mm Ruger pistol for protection while committing all of these crimes. Escalante had three prior felony convictions for similar types of fraud and was thus prohibited, as are all felons, from possessing a firearm. Escalante possessed one of the pistols while shooting at a victim from whom he had stolen a motorcycle.
Three of Escalante’s co-conspirators have pled guilty and are awaiting sentencing. A fourth co-conspirator is scheduled to change her plea on April 7, 2015.
Escalante faces a mandatory minimum five years in prison and a maximum of 40 years in prison and a $5 million fine.
The case was prosecuted by Assistant U.S. Attorney Aunnie Steward together with Special Assistant U.S. Attorney Erin Bennett who is a Municipality of Anchorage Prosecutor working with the U.S. Attorney’s office to assist in the prosecution of recidivist and violent criminals in the Anchorage area.
Ms. Loeffler commends the U.S. Postal Inspection Service, assisted by the Bureau of Alcohol Tobacco, and Firearms and the Anchorage Police Department for the investigation of this case.
Leader in Residential Mortgage Fraud Scheme Sentenced to 57 Months in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Edgar Tibakweitira, a/k/a “Edgar Julian,” “Charles Edgar Tibakweitira,” and “Edgar Gaudious Tibakweitira,” age 46, of Severn, Maryland, today to 57 months in prison, followed by five years of supervised release, for conspiracy to commit wire fraud and aggravated identity theft, arising from a residential mortgage fraud scheme. Judge Hazel also ordered Tibakweitira to pay restitution of $2,482,856.05.
Also today, Judge Hazel sentenced Nsane Phanuel Ligate, age 43, of Ashburn, Virginia, to five months in prison, followed by five months of home detention as part of three years of supervised release for conspiracy to commit wire fraud, in connection with a separate, but related mortgage fraud scheme. Ligate was also ordered to pay restitution of $352,091.82.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Cary A. Rubenstein of the U.S. Department of Housing and Urban Development Office of Inspector General; Deputy Inspector General for Investigations Rene Febles of the Federal Housing Finance Agency Office of Inspector General; Special Agent in Charge Kathy Michalko of the United States Secret Service – Washington Field Office; John L. Phillips, Assistant Inspector General for Investigations, U.S. Department of the Treasury - Office of Inspector General; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According his plea agreement, from March 2007 to November 2008, Tibakweitira, who was a real estate agent, and his co-conspirators sought mortgages for properties at values in excess of the properties’ actual market values. Tibakweitira recruited his wife Flavia Makundi, and others, including Mokorya Cosmos Wambura, Cane Mwihava and Annika Boas, to act as straw purchasers of homes.
Tibakweitira admitted that he procured inflated appraisals and created false addendums to the sales contracts requiring large amounts of loan proceeds to be disbursed for renovations or repairs. The defendants used stolen or false identities, false documents – including W-2 forms, earnings statements, and bank statements – and false credit information to induce lenders to provide residential mortgage loans to the straw buyers. Co-conspirator Carmen Johnson, through her company CJ Lending, created fictitious lines of credit for the straw buyers to fraudulently enhance their credit worthiness. Large amounts of the proceeds of the fraudulently obtained loans were disbursed from escrow accounts to Destiny Property Management, LLC and Destiny Property Management Company, which were shell companies owned by Tibakweitira, for repairs and renovations that were never made to the properties. These funds were paid to the defendants. The defendants did not make or stopped making the mortgage payments and allowed the properties, including 10 properties located in Severna Park, Baltimore, Hyattsville and Silver Spring, to go into foreclosure.
As a result of the conspiracy, lenders provided over $3.5 million for fraudulently obtained loans, which resulted in losses of almost $2.5 million to the lenders, the Federal Housing Administration which insured some of the loans, and the Federal National Mortgage Corporation (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), who purchased some of the loans in the secondary mortgage market.
In the second scheme, between April and July 2008, real estate agent Nsane Phanuel Ligate conspired with Carmen Johnson and others in a similar mortgage fraud scheme involving two properties in Baltimore, resulting in losses to HUD and the lender of $352,091.58.
Tibakweitira co-conspirators Flavia Makundi, age 43, of Severn Park, Maryland, Ayoub Luziga, age 36, of Bowie, Maryland, Raymond Abraham, age 48, of Silver Spring, Maryland, Mokorya Cosmas Wambura, age 42, of Takoma Park, Maryland, Abdallah Suleiman Kitwara, age 44, of Bowie, Maryland, pleaded guilty to their roles in the first scheme. Luziga was sentenced to 21 months in prison and ordered to pay restitution of $999,726. Kitwara was sentenced to 15 months in prison and ordered to pay $290,954 in restitution. Abraham was sentenced to 33 months in prison and ordered to pay $999,726 in restitution. Makundi was sentenced to time served. Annika Boas, age 37, of Mount Rainier, Maryland, was convicted after trial. Boas was sentenced to 27 months in prison and ordered to pay restitution of $511,147.
Ligate co-conspirators Cane Mwihava, age 44, of Bowie, Maryland, Larry Johnson, age 58, of Capital Heights, and Gladyness Silaa, age 36, of Bowie, Maryland also pleaded guilty to their roles in the second mortgage fraud scheme. Larry Johnson was sentenced to eight months in prison consecutive to the current sentence he is serving on an unrelated case and ordered to pay restitution of $352,091. Silaa was sentenced to six months home detention and ordered to pay $378,602 in restitution. Mwihava was sentenced to six months home detention and ordered to pay $352,091 in restitution.
Carmen Johnson, age 48, of Gambrills, Maryland, was convicted after trial for her participation in both schemes. Johnson is scheduled to be sentenced on June 3, 2015 at 10:00 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised HUD-OIG, FHFA-OIG, Treasury OIG, U.S. Secret Service and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley and Special Assistant U.S. Attorney Kevin Di Gregory, Investigative Counsel for the Federal Housing Finance Agency Inspector General, who prosecuted the case.
Lawrence Man Charged with Conspiracy to Import Methylone (“Molly”)Read the Press Release
BOSTON – A Lawrence man was arraigned yesterday on one count of conspiring to import controlled substances from China, including Methylone and a-PvP.
In August 2013, Stanislav Nestorov, 24, allegedly conspired with others to import controlled substances from China, including Methylone and a-PvP. Methylone, also known as “Molly,” and a-PvP, are synthetic drugs, meaning they are created in a laboratory. A-PvP is a controlled substance analog that is substantially similar in make-up and effect on the central nervous system to other Schedule I drugs and, like Molly, is highly dangerous to those who consume it.
The charging statute provides a sentence of no greater than 20 years in prison, a lifetime of supervised release, and a fine of $1 million. 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 and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. The case is being handled by Assistant U.S. Attorney Susan Winkler of Ortiz’s Drug Task Force Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lapwai Woman Admits to Concealing Person from ArrestRead the Press Release
COEUR D'ALENE - Nicole Shannon Rose Two Moon, 30, of Lapwai, Idaho, pleaded guilty today in federal court in Coeur d’Alene to concealing a person from arrest, U.S. Attorney Wendy J. Olson announced. Two Moon was indicted by a federal grand jury on November 18, 2014.
According to the plea agreement, Two Moon admitted that in April and May of 2014, she allowed Delbert George to stay at her house knowing a federal warrant had been issued for his arrest in March of 2014. Two Moon let him stay there to help George avoid detection on the warrant.
The charge of concealing person from arrest is punishable by up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for July 21, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
“I commend the collaborative efforts of law enforcement,” said Olson. “Harboring a fugitive is a serious crime which creates a potentially dangerous situation for all of those involved.”
The case was investigated by the Nez Perce Tribal Police and the Federal Bureau of Investigation.
Keshena Man Sentenced to 121 Months in Prison for Sexual AssaultRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that Michael P. Cantrell Sr., (age: 46), of Keshena, Wisconsin located on the Menominee Indian Reservation, was sentenced on March 27, 2015, to 121 months of imprisonment, followed by a 15 year term of supervised release. The sentence was the result of a guilty plea by Cantrell on December 2, 2014, to aggravated sexual abuse of an adult female by force.
The investigation revealed that on April 24, 2014, Cantrell, used force to sexually assault a female, at a residence on the Menominee Indian Reservation. Law enforcement officials interviewed Cantrell and he admitted that he sexually assaulted the victim.
This case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Benjamin L. Whittemore.
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Justice Department Asks Federal Court to Shut Down Detroit Area Mother-Daughter Tax Return PreparersRead the Press Release
The United States filed a complaint seeking to permanently bar a Detroit-area woman, her daughter, and the tax preparation businesses they operate from preparing federal tax returns for others, the Justice Department announced today.
The civil injunction complaint against Denise Pope and Janise Jones, which was filed in the U.S. District Court of the Eastern District of Michigan, alleges that Pope and Jones prepare federal income tax returns for customers that understate their correct tax liabilities.
Denise Pope, also known as Denise Miller, operates CDP Tax Services Inc., CDP Accounting Service, PC, dba CDP Tax and Uneek Business Solutions — each of which was named as a defendant, according to the suit.
The government’s suit alleges that the understatements are the result of improper earned income tax credits, education credits, charitable deductions, unreimbursed employee business expense deductions and Schedule C (Profit or Loss From Business) expenses and income, which the defendants claim for their customers despite any supporting documentation. Because some of these credits are refundable, the improper claims often result in larger than appropriate tax refunds, according to the suit. The complaint alleges that the Internal Revenue Service (IRS) interviewed several of the defendants’ customers, who stated that the improper deductions, credits and Schedule C business expenses and income were not based on information they provided to the defendants.
According to the complaint, the IRS estimates that the defendants, using these business entities, have prepared more than 3,000 tax returns since 2011. The complaint alleges that the IRS has completed examinations of 87 of those returns, and the total tax deficiency for those returns alone exceeds $460,000. Based on the number of returns these defendants prepared, the complaint alleges that the harm to the U.S. Treasury far exceeds $460,000.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on its website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Pope Complaint
International Shipping Company Pleads Guilty to Smuggling Endangered Sea Turtle ShellsRead the Press Release
SAN FRANCISCO, Calif.- London-based Hedley’s Humpers, Ltd., pleaded guilty in federal court in San Francisco today to smuggling two sea turtle shells into the United States in violation of the Endangered Species Act, announced United States Attorney Melinda Haag and U.S. Department of Commerce, National Oceanic and Atmospheric Administration Special Agent in Charge William Giles.
In pleading guilty, the corporate defendant admitted to fraudulently importing from Europe the shells, as well as other protected wildlife articles. The company further admitted it facilitated the concealment and transportation of the sea turtle shells to the United States. The shells were from the species Green Sea Turtle (Chelonia mydas) that are listed in Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora and are therefore are not permitted to be transported into the United States. The species of Green Sea Turtle also were identified as an endangered species under the Endangered Species Act. Notwithstanding the laws protecting the turtles and prohibiting transportation of the shells into the United States, Hedley’s Humpers imported the turtles’ shells from Europe and facilitated their concealment and transportation to the Northern District of California. Among the acts in which Hedley’s Humpers engaged was to falsely describe the sea turtle shells on an invoice as “2 mottled oval sculptures” and enclose the shells in a package labeled “1x armchair.” Heldey’s Humpers also admitted it smuggled other protected wildlife items in previous years, with a total market value of more than $70,000.
Hedley’s Humpers was indicted by a federal grand jury on July 15, 2014. On August 5, 2014, the grand jury issued a superseding indictment charging Hedley’s Jumpers with four counts of violating smuggling laws: one count of smuggling and aiding and abetting smuggling, in violation of 18 U.S.C. § 545; two counts of conspiracy to traffic and smuggle wildlife, in violation of 18 U.S.C. § 371; and one count of wildlife trafficking in violation of 16 U.S.C. §§ 3372(d) and 2273(d). Pursuant to today’s agreement, Hedley’s Humpers pleaded guilty to one count of smuggling in violation of 18 U.S.C. § 545.
Pursuant to the plea agreement, Hedley’s Humpers agreed to a three-year period of probation, a $75,000 fine, $25,000 in community service payments, and a $400 mandatory special assessment, although those sentencing provisions will have to be approved by the federal court. Sentencing is scheduled for July 7, 2015, at 2:00 p.m. before the Honorable William H. Alsup, U.S. District Judge, in San Francisco. 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. Attorney Hartley M.K. West is prosecuting the case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by the U.S. Department of Commerce, National Oceanic and Atmospheric Administration, and the U.S. Homeland Security Investigations Border Enforcement Security Task Force.
Husband and Wife Members of Sports Betting Ring SentencedRead the Press Release
PHILADELPHIA – Joseph and Anna Rose Vitelli, of Conshohocken, PA, were sentenced today for their roles in a Racketeering conspiracy involving the Mastronardo Bookmaking Organization. Joseph Vitelli, 71, was sentenced to five months in prison and three years of supervised release, with the first five months served on house arrest. His wife, Anna Rose, 67, was sentenced to five months in prison and three years of supervised release, with the first five months served on house arrest. Harry Murray, 62, of Boca Raton, FL, was also sentenced today for his role in the Racketeering conspiracy. Murray was sentenced to eight months in prison and two years of supervised release, with the first eight months served on house arrest. U.S. District Court Judge Jan E. DuBois handed down the sentences.
The Mastronardo Bookmaking Organization was a multi-million dollar sports betting operation with bettors throughout the U.S. At its peak, the organization had more than 1,000 bettors and was generating millions of dollars a year. The Vitellis and Murray were among 15 defendants charged by indictment with Racketeering conspiracy in the case. All 15 of those defendants pleaded guilty prior to trial. The government will forfeit approximately $3.7 million as a result of the guilty pleas in this case.
Joseph Vitelli and Anna Rose Vitelli owned J & A Check Cashing in Philadelphia. From 2005–2010, J & A Check Cashing laundered over $500,000 of checks to assist the Mastronardo Bookmaking Organization. And, in 2005 and 2006, the couple allowed the Mastronardo Bookmaking Organization to use a second floor office to run the illegal gambling business.
Murray was a bookmaker in Florida. He pleaded guilty to his role in three separate money laundering conspiracies, including the use of J & A Check Cashing to launder gambling proceeds. In March 2010, Joseph V. Mastronardo, Jr., in a conversation with Murray, commented “Well times like this I’m happy I’m a bookmaker,” to which Murray responded, “Me too.”
Between January 1, 2005 and January 1, 2011, the organization utilized internet websites and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events. Residents of Costa Rica staffed the internet and telephone sites. Members of the organization used telephone, Skype, email, text messaging, and in-person communication to take bets and collect or deliver payments that ranged from $1,000 to more than $100,000.
Prior to today’s hearings, four other defendants had been sentenced. Joseph Vito Mastronardo, Jr., was sentenced to 20 months in prison and a $100,000 fine. His son, Joseph F. Mastronardo, was sentenced was sentenced to five months in prison, three years of supervised release, with the first five months served on house arrest, and a $5,000 fine. His brother, John Vito Mastronardo, was sentenced to nine months in prison, three years of supervised release, with the first five months served on house arrest, and a $5,000 fine. An associate, Eric Woehlcke, was sentenced to eight months in prison, three years of supervised release, with the first eight months served on house arrest, and a $3,000 fine.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the Montgomery County Detective Bureau, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna.
Humble Woman Pleads Guilty in Second Fraud SchemeRead the Press Release
HOUSTON - Cheryl Reed Johnson aka Shawnee Reed and Cheryl Reed, 37, of Humble, has been convicted of engaging in a conspiracy to commit bank, mail and wire fraud as well as making false statements to a bank and wire fraud, announced U.S. Attorney Kenneth Magidson.
From approximately January 2005 through February 2014, Johnson illegally used various Social Security numbers not assigned to her by the Commissioner of Social Security. She would use those numbers in order to obtain loans from banks and other lending institutions to purchase houses and vehicles.
Johnson was also previously convicted in a second conspiracy related to tax fraud, including conspiracy to commit mail and wire fraud, conspiracy to make false claims to the Internal Revenue Service (IRS) and making a false claim to the IRS. In this scheme, Johnson and others claimed more than $2.2 million in false first time home buyer credits on 2008 returns they filed with the IRS. The fraudulent claims resulted in Johnson and her co-conspirators claiming more than $2.3 million in fraudulent refunds.
Johnson will be sentenced in both cases by U.S. District Judge Gray Miller on Aug. 7, 2015.
For the convictions today, she faces up to 30 years and a possible $1 million fine for conspiracy to commit bank, mail and wire fraud as well as the false statements conviction. For wire fraud, she also faces a possible maximum term of 20 years imprisonment and a possible $250,000 fine. In the second case, she will also face up to 20 years for the conspiracy to commit mail and wire fraud, another possible 10 years for the conspiracy to make false claims and up to five years for making the false claims.
She will remain in custody pending that hearing.
Both cases are the result of investigations conducted by the U.S. Postal Inspection Service and IRS - Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting the cases.
Greece Man Charged with Child Pornography and Enticement ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jason Cortese, 33, of Greece, NY, was arrested and charged by criminal complaint with attempted production of child pornography, enticement of a minor, distribution and possession of child pornography. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a fine of $250,000.Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, a family member of a 12-year old minor notified law enforcement officials after seeing the contents of the 12-year-old’s cell phone which included chats between the minor and the defendant. A forensic examination was conducted which revealed sexually explicit conversations between the 12-year-old and Cortese. The defendant was known to the 12-year-old minor as a family friend. The minor disclosed that the two started chatting directly with one another through Facebook and then through Kik and Instagram. The chats revealed that the defendant attempted to get sexually explicit photos from the minor, sent pictures of his private area to the minor, and sent images to the minor that appeared to depict child pornography.
“This Office consistently encourages parents and guardians to monitor any technology use by their children and those in their care,” said U.S. Attorney Hochul. “This case is a perfect example of why that is so important. It also shows that once adults alert law enforcement, we can and will follow up on any and all leads, wherever they take us.”
Cortese made an initial appearance this morning before U.S. Magistrate Judge Jonathan W. Feldman. The defendant is being held pending a detention hearing on April 2, 2015 at 10:30 a.m.
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.
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 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.
Governor, Goodwin and state and local officials unveil West Virginia Center for Children's JusticeRead the Press Release
Center will serve as a statewide clearinghouse for information, resources, training and technical assistance
CHARLESTON, W.Va. – Governor Earl Ray Tomblin, United States Attorney Booth Goodwin, and West Virginia State Police Colonel Jay Smithers, and other state and local officials, along with school, law enforcement, and child advocacy and mental health professionals, came together today to unveil the West Virginia Center for Children’s Justice. The Center, a collaborative effort between Goodwin’s office, West Virginia State Police and West Virginia Department of Health and Human Resources, Bureau for Children and Families, will serve as a statewide clearinghouse for information, resources, training and technical assistance.
The Center, located at the West Virginia State Police Professional Development Center in Dunbar, West Virginia, will house the West Virginia Defending Childhood Initiative Task Force (Handle With Care), West Virginia Children’s Justice Task Force, and the West Virginia Drug Endangered Children’s Task Force. All three task forces are charged with improving the investigation, prosecution and judicial handling of child abuse and neglect cases, strengthening prevention and intervention efforts, and promoting school-community partnerships aimed at ensuring that children who are exposed to trauma in their home, school or community receive appropriate interventions to help them achieve academically at their highest levels despite whatever traumatic circumstances they may have endured.
“I’m proud of the continued collaboration by our state’s law enforcement, Department of Health and Human Resources and educators to provide at-risk children with the support they need to heal, thrive and achieve long-term success in West Virginia,” Gov. Tomblin said. “I’m confident the West Virginia Center for Children’s Justice—through its partnership with schools and communities across the state—will play a significant role in expanding prevention and intervention services to ensure a promising future for our kids now and for years to come.”
The Center will promote safe and supportive homes, schools and communities that protect children, and help traumatized children heal and thrive. “This Center will improve communication and collaboration between law enforcement, prosecutors, schools, advocates and mental health providers, and help connect families, schools and communities to mental health services. We can no longer work in our silos focused on one piece of a child’s life puzzle. We must work together to make systemic improvements that can truly change the trajectory of a child’s path,” stated Goodwin.
Colonel Jay Smithers commented, “Child abuse is a community problem. No single agency can intervene effectively -- it takes a team. As law enforcement, we can play a crucial role in helping to link child victims to essential services and counseling. The West Virginia State Police is proud to house the Center for Children's Justice which will strengthen the multidisciplinary team response to child victims across the state.”
For more information about the West Virginia Center for Children’s Justice, visit www.handlewithcarewv.org.
Golden Grove Prisoner Sentenced to 30 Days in Prison for Cell Phone PossessionRead the Press Release
St. Croix, USVI - District Court Judge Raymond Finch, on March 30, 2015, sentenced Golden Grove Prisoner Al-Ahad Barbel, 29, to 30 days in prison for possession of prison contraband, announced United States Attorney Ronald W. Sharpe and U.S. Drug Enforcement Administration (DEA) Special Agent-in-Charge Vito S. Guarino. Barbel also was ordered to pay a special assessment of $100 to the court. The 30 days must be served consecutively to the sentence Barbel was serving at the time of the offense.
On June 20, 2014, Barbel pleaded guilty to possession of prison contraband after law enforcement officers discovered and seized a cellular phone and a subscriber identity module from his person while he was an inmate at the Golden Grove Adult Correctional Facility. On September 18, 2013, federal and local law enforcement officers conducted a search at the St. Croix facility for contraband. Cellular telephones are prohibited contraband in correctional facilities because they are known to be used by prisoners to intimidate witnesses, orchestrate narcotics transactions, and to facilitate other criminal activity, including murders.
The case was investigated by the V.I. Bureau of Corrections Gang Intelligence Search Team and the DEA. The case was prosecuted by Assistant United States Attorneys Alphonso Andrews and Rami Badawy.
Fort Smith Man Sentenced to Two Years in Prison for Bankruptcy Fraud and Being A Felon in Possession of A FirearmRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced today that Randall Bee “Randy” Blythe, age 58, of Fort Smith, was sentenced to 24 months in federal prison followed by three years of supervised release, and ordered to pay $468,309.58 in restitution on three counts of Bankruptcy Fraud and one count of being a Felon in Possession of a Firearm. On November 20, 2014, a jury found Blythe guilty of the charges following a four day jury trial. The Honorable P.K. Holmes, III presided over the sentencing hearing in The United States District Court in Fort Smith.
U.S. Attorney Eldridge commented, “This defendant fraudulently concealed assets from his creditors and from the Bankruptcy Court. This type of fraud will be prosecuted to the fullest extent in the Western District of Arkansas. People who use the bankruptcy system to discharge debts while hiding assets tarnish the system and do a disservice to the honest petitioners seeking a second chance.”
“The Defendant’s efforts to deceive the Federal Bankruptcy Court as to his true financial condition undermine the integrity of the system,” stated Special Agent in Charge David T. Resch, Little Rock Federal Bureau of Investigation. “We will continue to work together with the United States Attorney’s Office to send a clear message to those that participate in fraud of this nature.”
According to court records, beginning in September, 2008 and continuing through July, 2009, Blythe, in contemplation of a bankruptcy case, knowingly and fraudulently transferred property belonging to himself, including six collector automobiles and over $150,000 in checks, to his mother’s company, Classic Cars of Northwest Arkansas, thereby concealing it from his creditors and the Bankruptcy Court. Blythe also fraudulently submitted a Statement of Financial Affairs in which he omitted those transfers and income. Blythe was originally indicted by a federal grand jury on March 19, 2014, charging him with devising a scheme and artifice to defraud his creditors, the bankruptcy trustee and the Bankruptcy Court. On April 17, 2009, Blythe filed a Chapter 7 bankruptcy petition in the United States Bankruptcy Court for the Western District of Arkansas on behalf of his wife, Greta Blythe, and himself doing business as entities Tri-Eagle Enterprises, Inc., Dewalt Acceptance, Inc., Western Arkansas Motor, WD&G Properties, LLC, Elizabeth Hilton Management, Inc., and Western Motorsports, Inc. On July 27, 2009, Blythe and his wife were granted a discharge by the Bankruptcy Court of the Western District of Arkansas. Blythe misled the Bankruptcy Court and the Bankruptcy Trustee by disclosing assets of only $460,090.28. Blythe operated and controlled various business entities primarily involved in the sale of used vehicles, many of which were classified as “classic” or “collector” cars. Blythe created multiple entities which were owned in whole or in party by Blythe or other entities controlled by Blythe; these entities in addition to the above ones listed included Randy Blythe Dream Cars, Vento Motorcycles USA of Fort Smith, Vento Motorcycles USA of Northwest Arkansas, and Western Arkansas Motor Company. On December 22, 2008, “Classic Cars of Northwest Arkansas, Inc.” (“Classic Cars”) was created by Blythe’s mother. Classic Cars opened a First Western Bank Account on January 15, 2009, and between February 4, 2009, and April 13, 2009, in checks payable to Blythe and his various entities, $96,467.72 was deposited into that First Western Bank account. These funds were fraudulently omitted from Blythe’s Bankruptcy schedules and statements of financial affairs and not disclosed to the Bankruptcy Court as required. Between April 20, 2009, and July 27, 2009, the date of Blythe’s bankruptcy discharge, an additional $30,489.86 in checks payable to Blythe and his various entities were deposited into the First Western Bank Account. No accounts receivable were listed in Blythe’s Bankruptcy filings. Additionally, between December 22, 2008 and June 10, 2009, five vehicles owned by Western Arkansas Motor were transferred to Classic Cars and were fraudulently omitted from Bankruptcy filings and not disclosed to the Bankruptcy Court as required. An additional vehicle and a valuable set of collectible firearms were kept by Blythe and fraudulently omitted from the statement of financial affairs and were not disclosed to the Bankruptcy Court as required. Blythe, who was convicted of 21 counts of bank fraud in 2011, was also convicted of being a felon in possession of 11 collectible firearms. .
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ben Wulff and Assistant U.S. Attorney Aaron Jennen 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
Former eBAY Manager Sentenced to 30 Months for Stealing More Than $200,000 in IRS RefundsRead the Press Release
SAN JOSE, Calif. – Sanjeev Bais was sentenced to 30 months imprisonment and ordered to pay restitution of $247,541 for theft of government property, United States Attorney Melinda Haag and Special Agent in Charge José M. Martinez announced.
Bais, 41, of San Jose, pleaded guilty on December 8, 2014. According to the plea agreement, between February 2009 and April 2010, Bais and his partner stole $224,792 in IRS refunds by filing false tax returns. Bais, an eBay, Inc. manager at that time, had an email list consisting of employees of San Jose based technology companies. Using that email list, Bais sent an email soliciting tax return preparation services by a Certified Public Accountant named “Raj Malhotra.”
Bais admitted that while operating under the alias “Raj Malhotra,” he asked these victims for personal information, including copies of their driver’s licenses, Forms W-2, Forms 1099 and 1098, and other tax related documents. He also instructed these people to pay for the tax returns by submitting payments to his PayPal account. Bais and his partner prepared tax returns showing false Schedule C business losses, false “Other” losses, and false Schedule A items. Additionally, instead of sending the victims copies of the tax returns filed with the IRS, Bais and his partner sent fake copies that accurately reflected the individual tax liability of the victims. Bais and his partner submitted the tax returns to the IRS using Intuit, Turbo Tax, and by submitting paper tax returns. To further conceal his crimes, Bais and his partner deposited cash into the victims’ real bank accounts in amounts that matched the refunds shown on the fake tax returns that he sent to them. Bais used the fraudulently obtained money to pay his mortgage on a property in Belmont and provided $27,000 to his partner to deposit into an account with the State Bank of India.
The sentence was handed down by the Honorable Edward J. Davila, following a guilty plea on 14 counts of theft of government property in violation of 18 U.S.C. § 641. Judge Davila also sentenced the defendant to a one year period of supervised release. The defendant was ordered to surrender on June 8, 2015.
Assistant U.S. Attorney Thomas Moore is prosecuting this case. The prosecution is the result of an investigation the IRS, Criminal Investigation.
Former Top GSA Official Pleads Guilty to Filing False ClaimsRead the Press Release
SAN FRANCISCO- Jeffrey Neely, the former Acting Regional Administrator of the U.S. General Services Administration (GSA), pleaded guilty in federal court in San Francisco today to making a false claim to the United States, announced United States Attorney Melinda Haag and GSA Office of Inspector General, Acting Special Agent in Charge Theresa Quellhorst.
In pleading guilty, Neely, 59, of Gardnerville, NV, admitted to submitting a claim for reimbursement for, and causing GSA to pay, a claim for lodging expenses at a Las Vegas-area casino, which he knew was not incurred for official business.
In 2010, Neely was the Regional Commissioner for the Public Buildings Service for the Pacific Rim Region for the U.S. General Services Administration. The region includes California, Arizona, Hawaii, Nevada, American Samoa, the Northern Mariana Islands, Guam, and Saipan, as well as certain properties in Japan, Korea, Singapore, and elsewhere. Neely also was Acting Regional Administrator, making him the top official in the region for GSA. According to the plea agreement, Neely submitted to GSA a claim to be reimbursed for lodging expenses at M Resort Spa Casino Las Vegas which he knew was not incurred for official business. He also admitted he submitted and caused GSA to pay additional false claims during his tenure, that he improperly failed to claim annual leave on certain dates, and that these acts resulted in losses to GSA exceeding $5,000. He also agreed that these acts constitute an abuse of his position of trust with GSA, and that he obstructed justice during GSA’s investigation of his offenses by submitting a false document and falsely certifying it as true.
On September 25, 2014, a federal grand jury indicted Neely and charged him with three counts of making false claims, in violation of under 18 U.S.C. § 287; and two counts of making false statements and using false documents, in violation of 18 U.S.C. § 1001. Pursuant to the plea agreement, Neely pleaded guilty to one count of making a false claim to the United States, in violation of 18 U.S.C. § 287. He also agreed to pay $8,000 in restitution.
Neely remains out of custody pending his sentencing hearing, which is scheduled for June 30, 2015, at 2:30 p.m., before the Honorable Richard Seeborg, U.S. District Judge, in San Francisco. The maximum statutory penalty for a violation of 18 U.S.C. § 287 is a five year term of imprisonment, a fine of $250,000 (or twice the gross gain or loss resulting from the violation) plus restitution. However, 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. Attorney Hartley M.K. West is prosecuting the case with the assistance of Rosario Calderon. The prosecution is the result of an investigation by the GSA’s OIG.
Former Titusville Police Officer Sentenced to Ten Years in Prison for Participating in A Drug DealRead the Press Release
Orlando, Florida – United States District Judge Paul G. Byron today sentenced Richard Irizarry (46, Viera) to 10 years in federal prison, followed by four years of supervised release, for attempting to aid and abet the distribution of cocaine. A federal jury found him guilty on January 9, 2015.
According to evidence presented at trial, Irizarry joined the Titusville Police Department in 2010 as a sworn law enforcement officer. While on duty during the summer of 2013, he responded to an apartment complex and befriended a person, who, unbeknownst to Irizarry, was a DEA confidential informant. While at a New Year’s Eve party in 2013, Irizarry told the informant that he knew that the informant was a drug dealer, and that Irizarry wanted to get into the drug business with him to make money. The next day, the informant reported the conversation to DEA, which immediately initiated an investigation.
On several occasions, Irizarry met with or called the informant, who recorded all of their meetings and telephone conversations. Irizarry often used his official police vehicle to meet the informant after his shift was over. On January 13, 2014, Irizarry looked up a license plate in a confidential database for the informant and identified it as belonging to an undercover DEA car. On another occasion, while on duty and in uniform, Irizarry parked his patrol car 50 feet away from the informant and an undercover agent that Irizarry believed was also a drug dealer. After listening to his police radio, Irizarry used his cell phone to tell the informant that it was safe to do a deal. Following that call, the informant handed the undercover agent what Irizarry believed was a kilogram of cocaine. For protecting the drug deal, the informant paid Irizarry $500.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Vincent A. Citro.
Former Owner of Ohio Gambling Supplies Store Pleads Guilty to Gambling, Tax and Obstruction OffensesRead the Press Release
The former co-owner of R&J Partnership Ltd. doing business as Reece’s Las Vegas Supply (RLVS), a gambling supplies store located in Dayton, Ohio, has pleaded guilty to conspiracy to operate an illegal gambling business and operating an illegal gambling business, conspiracy to defraud the United States and witness tampering. The charges were part of an indictment unsealed on Sept. 26, 2014, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
The other defendants charged in the indictment, including Douglas A. Sanders, Jason S. Pulaski, Michael E. Gedeon, Jennifer Williams and Walter F. Dyer, previously pleaded guilty to illegal gambling and obstruction of justice offenses.
According to the indictment and the statement of facts as part of the plea agreement, between February 2004 and May 2011, Reece Powers II oversaw the recruitment of local 501(c)(3) non-profit charitable organizations to sponsor poker fundraisers that included casino-like card games. Powers entered into arrangements with the charitable organizations to control all of the funds generated from the poker fundraisers.
These poker fundraisers were exempted from the general prohibition against games of chance under then-existing Ohio laws, subject to the requirement that all the funds received from the games of chance, after deducting only prizes paid out and necessary expenses sanctioned under law, be transferred to the charitable organization for their sole benefit and use. Powers, with the help of his co-conspirators, took a portion of the money generated from the poker fundraisers and used those funds to pay the events’ workers, among other things, in violation of Ohio law and federal gambling laws.
Powers provided false accountings to the charitable organizations of the funds received from the events and skimmed a portion of the money. Powers either supervised or personally distributed illegal cash payments to his co-conspirators and employees who worked as card dealers, cashiers, chip sellers, pit bosses, tournament directors and managers. Powers and his co-conspirators also falsely held themselves out as uncompensated volunteers at the poker fundraisers.
In 2009, Powers and Allen Beck, a former business broker, conspired to defraud the Internal Revenue Service (IRS) in attempting to sell RLVS. Beck previously pleaded guilty to a conspiracy charge. In an effort by Powers to evade taxes, Powers and Beck arranged the sale to make it appear as if the business and its associated real estate was sold for an amount less than its actual sale price.
In February 2010, Powers also tampered with a witness testifying before a federal grand jury by instructing the witness to testify falsely that the witness and other RLVS staffers did not get paid for working at the poker fundraisers. Previously, Pulaski, Gedeon, Williams and Dyer each pleaded guilty to committing obstruction of justice by falsely testifying before a federal grand jury that they were uncompensated volunteers at the poker fundraisers.
U.S. District Judge Timothy Black of the Southern District of Ohio did not schedule a sentencing date. Powers faces a statutory maximum sentence of 35 years in prison and a fine of $1,000,000.
Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant Chief Jorge Almonte and Trial Attorneys Christopher P. O’Donnell and Austin F. Furman of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office of the Southern District of Ohio for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
Former MPD Detective Pleads Guilty to Money Laundering Charge Involving Purchases Made with Proceeds of Drug ConspiracyRead the Press Release
WASHINGTON – Stephanie Ellison, 50, a former Metropolitan Police Department (MPD) detective, pled guilty today to a money laundering charge stemming from the purchase and financing of two cars and a motorcycle with money that came from a drug conspiracy.
In a related plea, Raymond Proctor, 47, pled guilty today to drug conspiracy and money laundering charges.
The guilty pleas were announced by U.S. Attorney Ronald C. Machen Jr.; Charles E. Smith, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; Cathy L. Lanier, Chief of the Metropolitan Police Department, and Troy D. Berry, Sheriff of Charles County, Md.
Ellison pled guilty in the U.S. District Court for the District of Columbia to one count of conspiracy to launder monetary instruments. She faces a statutory maximum of 20 years in prison. The Honorable James E. Boasberg scheduled sentencing for June 9, 2015.
Proctor, of Washington, D.C., pled guilty to one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin and one count of conspiracy to launder monetary instruments. He faces a statutory maximum of 60 years of incarceration. He is to be sentenced on April 29, 2015.
According to the proffers of evidence filed with the Court, in 2010 the ATF, the MPD and the Charles County Sheriff’s Department began this joint investigation. During that investigation, Proctor sold a total of approximately 418 grams of heroin during several controlled purchases to multiple undercover agents in exchange for cash and export-only cigarettes.
During the course of this narcotics conspiracy, Proctor and Ellison conspired to launder monetary instruments. As part of this conspiracy, Proctor and Ellison purchased a 2006 Maserati, a 2007 Harley Davidson Night Rod, and a 2009 750LI BMW. Proctor and Ellison purchased these vehicles by commingling Proctor’s illegal proceeds with funds obtained from Ellison. Proctor and Ellison titled these vehicles in Ellison’s name; however, the vehicles were purchased for Proctor’s use. These vehicles were purchased to conceal and disguise the nature, source, and ownership of the narcotics proceeds, and hide the true ownership of the vehicles. According to the government’s evidence, Ellison knew that the property involved in these financial transactions represented the proceeds of some unlawful activity.
Ellison joined the MPD in 1986. The guilty pleas include consent orders of forfeiture for a money judgment which represent the proceeds of the crimes.
In announcing the pleas, U.S. Attorney Machen, Special Agent in Charge Smith, Chief Lanier, and Sheriff Berry commended the actions of the ATF Special Agents, Metropolitan Police Department officers, and members of the Charles County Sheriff’s Office who worked on the investigation and prosecution of this case. They also commended the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Catherine O’Neal, Kim Hall, Teesha Tobias, and Rosalind Pressley; Legal Assistant LaToya Wade, and former Legal Assistant Priscilla Hutson.
Finally, they expressed appreciation for the efforts of Assistant U.S. Attorneys Karla-Dee Clark and Zia Faruqui, who investigated and prosecuted these cases.
Former JSO Corrections Officer Sentenced for Possessing Child PornographyRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Leon Perry Brooks, Sr. (41, Jacksonville) to 21 months in federal prison for possessing child pornography. He was also ordered to register as a sex offender and to serve a five-year term of supervision following his prison term. A federal jury found Brooks guilty on October 8, 2014.
According to evidence presented at trial, in January 2013, a detective from the Jacksonville Sheriff Office, serving on the Internet Crimes Against Children Task Force, was able to download two videos depicting child pornography from an Internet Protocol address registered to Brooks. A search warrant was subsequently executed at his home, which resulted in the seizure of several computers. Two of these computers contained multiple videos depicting minors engaged in sexually explicit conduct.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in conjunction with the Jacksonville Sheriff’s Office’s Internet Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Diidri W. Robinson.
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 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 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.
Former FBI Special Agent Sentenced to 10 Years in Prison for Bribery and Obstruction SchemeRead the Press Release
Co-Conspirators Sentenced to 24 Months and 13 Months in Prison for Their Roles
SALT LAKE CITY – A former FBI special agent was sentenced today to 10 years in prison and ordered to forfeit $70,000 for soliciting and accepting bribes to obstruct a Utah federal grand jury investigation into an alleged kickback scheme involving a defense contractor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Carlie Christensen of the District of Utah and Justice Department Inspector General Michael E. Horowitz.
“FBI agents—like all federal law enforcement—must be above reproach, but former Special Agent Lustyik sold his badge and position of public trust to the highest bidder,” said Assistant Attorney General Caldwell. “This sentence serves as a stark reminder that no one is above the law. Corrupt officials who break the law and breach their oaths will be prosecuted and sent to prison, even if they come from within the ranks of federal law enforcement.”
“These three defendants attempted to thwart a significant criminal investigation in Utah,” said U.S. Attorney Christensen. “Two of these defendants were entrusted with protecting our citizens and upholding the law. Their conduct, in particular, stands in stark contrast to the integrity and sacrifice of the men and women in our military and law enforcement ranks and their sentences today send a powerful message that no one is above the law.”
“Today’s sentencings represent important steps toward justice in this case,” said Inspector General Horowitz. “Department of Justice employees and their associates must be held accountable when they abuse their authority and betray the public’s trust.”
Robert G. Lustyik Jr., 52, of Sleepy Hollow, New York, a 24-year veteran of the FBI, pleaded guilty to all charges in an 11-count indictment on Sept. 29, 2014. Specifically, Lustyik pleaded guilty to conspiracy to commit bribery and obstruction, eight counts of honest services wire fraud, obstruction of a grand jury investigation and obstruction of an agency proceeding.
Lustyik’s co-defendants, Michael L. Taylor, 54, of Harvard, Massachusetts, and Johannes W. Thaler, 51, of New Fairfield, Connecticut, were also sentenced today to 24 months in prison and 13 months in prison, respectively, for their roles in this scheme. Thaler was also ordered to forfeit $70,000, joint and several with Lustyik. U.S. District Senior Judge Tena Campbell of the District of Utah imposed all three sentences.
Lustyik and Thaler both pleaded guilty for their involvement in a similar bribery scheme in the Southern District of New York. Thaler was sentenced to 30 months in prison in that case, and will serve the two sentences consecutively. Lustyik is scheduled to be sentenced on April 30, 2015, in the Southern District of New York.
According to court documents, from October 2011 to September 2012, Lustyik and Thaler conspired to use Lustyik’s official position as an FBI counterintelligence special agent to obstruct a criminal investigation into Taylor, a businessman who owned and operated American International Security Corporation. Taylor was under investigation for allegedly paying kickbacks to obtain a series of contracts from the Department of Defense worth approximately $54 million. Taylor promised Lustyik and Thaler that, in exchange for their help, he would provide them cash and multimillion dollar business contracts. In an email message, Taylor told the two men, “I’ll make you guys more money than you can believe, provided they don’t think I’m a bad guy and put me in jail.”
According to court documents, Lustyik attempted to obstruct the investigation into Taylor by identifying Taylor as an official FBI confidential source in an effort to persuade the FBI, the Justice Department and the prosecutors and law enforcement agents in Utah that Taylor’s usefulness to the government outweighed the government’s interest in prosecuting him. Indeed, Lustyik emphasized that indicting Taylor would threaten the nation’s security. Lustyik also sought to take steps to directly intervene in the investigation by interviewing key witnesses.
According to court documents, the defendants boasted about the success of their scheme. In one email message, Lustyik wrote to Taylor, “The rate this is going. I will be indicted way before u ever are !!” Lustyik wrote separately to Thaler, “I can leave [the FBI] in June. But I’m afraid to if [Taylor] gets indicted n I’m not an agent I’m no help. Has he mentioned giving me‐u a salary?”
Taylor admitted at his plea hearing that, as part of this conspiracy, he offered Lustyik a six-figure salary and a share of the proceeds from various multi-million dollar business deals he was pursuing. Acknowledging this, Lustyik wrote to Taylor, “Let’s just get Utah over with and get stinking rich,” to which Taylor replied, “Getting stinking rick [sic], we are well on the way with that so I have the ball.”
The investigation was conducted by the U.S. Department of Justice Office of Inspector General. The case was prosecuted by Deputy Chief Peter Koski and Trial Attorney Maria Lerner of the Criminal Division’s Public Integrity Section and Trial Attorney Ann Marie Blaylock of the Criminal Division’s Asset Forfeiture and Money Laundering Section. Trial Attorney Scott Ferber of the National Security Division’s Counterespionage Section also assisted in the prosecution.
Former FBI Agent Pleads Guilty to Obstructing Justice, Falsifying Records, and Possessing HeroinRead the Press Release
PHILADELPHIA - Matthew Lowry, 33, of Upper Marlboro, Maryland, pleaded guilty today, in U.S. District Court in the District of Columbia, to crimes arising out of his tampering with substantial quantities of drug evidence while working as a Special Agent with the Federal Bureau of Investigation (“FBI”). Lowry pleaded guilty to 20 counts of obstruction of justice, 18 counts of falsification of records, 13 counts of conversion of property, and 13 counts of possession of heroin. U.S. District Court Judge Thomas F. Hogan scheduled a sentencing hearing for June 29, 2015. Lowry faces at least 87 months in prison under the advisory guideline range calculated by the government.
Lowry was assigned to the Washington, D.C. Field Office (“WFO”), and was a member of the Cross-Border Task Force (“CBTF”). He participated in the undercover purchase of heroin and, in lieu of turning the heroin into evidence and documenting its seizure, Lowry ingested the heroin. He also tampered with heroin evidence seized during several of his investigations.
The FBI referred this matter to the Department of Justice Office of the Inspector General, which initiated the investigation. Because Lowry’s investigations, as an agent, occurred within the District of Columbia and the districts surrounding it, those offices have been recused by the Department of Justice. The case was investigated by the Department of Justice Office of the Inspector General, with assistance from the Federal Bureau of Investigation as requested by the OIG. It is being prosecuted by Assistant United States Attorneys Kevin R. Brenner and Maureen McCartney.
Former Executive Sentenced to Federal Prison for Defrauding Health Care CompanyRead the Press Release
HOUSTON – Joseph S. Antonucci, 42, has been ordered to prison following his convictions on 15 counts of wire fraud, five counts of money laundering and one count of making a false statement to law enforcement agents, announced U.S. Attorney Kenneth Magidson. Antonucci’s scheme defrauded his former employer, Patriot Managed Health Care Systems Inc., and caused a significant monetary loss. The Houston resident pleaded guilty to defrauding his former employer on Oct. 23, 2014.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Antonucci a total sentence of 60 months in federal prison to be immediately followed by three years of supervised release. He was further ordered to pay $2.9 million in restitution.
Antonucci was employed by Patriot as executive vice president and treasurer at the company’s Houston headquarters. In this position, Antonucci ran the daily operations of the company, including soliciting and retaining clients, supervising other employees and controlling the company’s bank accounts.
The indictment charged Antonucci with defrauding Patriot by embezzling approximately $2.9 million from the company’s bank accounts from at least January 2007 through September 2012. At the time of his guilty plea, Antonucci admitted he made unauthorized withdrawals and transfers from Patriot’s bank accounts using a corporate debit card and wrote checks from these accounts to himself. Antonucci further caused Patriot’s account to transfer money by wire into both his own accounts and the accounts of third parties who provided services to Antonucci personally.
Antonucci executed the scheme by creating false financial documents which misrepresented key accounting figures for the company and overstated the company's net worth while concealing Antonucci's embezzlement. He sent these false documents via email to the managing partner of the investment fund that owned Patriot.
As part of his plea, Antonucci admitted he used emails to request additional capital investment from the managing partner, falsely claiming the funds were needed for legitimate business operations and concealing that the company actually needed money because of his own embezzlement.
Antonucci pleaded guilty to 15 counts of wire fraud based on these emails and personal expenses he paid (with Patriot’s money) for his American Express bill, gambling at the Palms Casino in Las Vegas and private jet travel. He further admitted to five counts of engaging in a monetary transactions with the proceeds of specified unlawful activity based on his use of Patriot funds to pay for additional personal expenses, including repayment of an Internal Revenue Service lien and a down payment on his home. He also admitted to making false a statement to FBI agents when they interviewed him in February 2013.
Antonucci was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Former Corrections Officer Pleads Guilty to Conspiring to Distribute Narcotics in Doña Ana County Detention CenterRead the Press Release
ALBUQUERQUE – Francisco Balderrama, 27, of El Paso, Texas, pleaded guilty today in federal court in Las Cruces, N.M., to conspiracy to distribute heroin, methamphetamine and cocaine within the Doña Ana County Detention Center (DACDC). At the time he committed the offense, Balderrama was employed as a corrections officer at the DACDC.
Balderrama was arrested on Oct. 6, 2014, on a criminal complaint charging him with conspiracy to distribute narcotics and providing contraband in a prison facility. The criminal complaint charged Balderrama with conspiring with co-defendants Virginia Aguirre, 54, and Delilah Morales, 23, both of Deming, N.M., and Brittany Huerta, 25, of Las Cruces to smuggle drugs and other contraband into the DACDC in June 2013. According to the complaint, an investigation by officers of the DACDC revealed Balderrama was conspiring with Aguirre, Morales and Huerta to smuggle drugs and drug paraphernalia into the DACDC at the behest of two federal inmates who were being held at the Detention Center.
Balderrama, Aguirre, Huerta and Morales subsequently were indicted on Jan. 14, 2015, and charged with conspiracy to distribute heroin, methamphetamine and cocaine in June 2013.
During today’s change of plea hearing, Balderrama pled guilty to the indictment and admitted that from June 3, 2013 through June 16, 2013, two inmates arranged for him to meet with Aguirre and Morales for the purpose of receiving a package containing drugs and other contraband together with a smuggling fee of $300.00 that was provided by Huerta. Balderrama further admitted that on June 16, 2013, Morales delivered the package of drugs and drug paraphernalia to him, and that he delivered the drugs and contraband to two inmates who were being held at the DACDC.
Aguirre, Huerta and Morales each pleaded guilty to the indictment earlier this month. Each admitted that from June 3, 2013 through June 16, 2013, they conspired with each other to provide a package containing heroin, cocaine, methamphetamine and other contraband to Balderrama on the evening of June 16, 2013, with the understanding that he would smuggle the package into the DACDC in exchange for a $300.00 fee.
At sentencing, each of the four defendants faces a statutory maximum penalty of 20 years in prison followed by not less than three years of supervised release. Their sentencing hearings have yet to be scheduled.
This case was investigated by the Las Cruces office of the U.S. Marshals Service, the Doña Ana County Detention Center and the New Mexico State Police. Assistant U.S. Attorney Edwin Garreth Winstead, III, is prosecuting the case.
Former Carrier Pleads Guilty to Stealing Mail from Rogersville ResidentsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former mail carrier who worked at the Rogersville, Mo., post office pleaded guilty in federal court today to stealing mail that contained cash and gift cards.
Margi J. Greek, 39, of Omaha, Ariz., waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to the theft of mail matter by an officer or employee. Greek was a substitute rural carrier from Nov. 30, 2013, until her termination on Nov. 21, 2014, for theft of mail.
By pleading guilty today, Greek admitted that she targeted incoming and outgoing mail that she believed contained cash and gift cards on her Rogersville route from May 1 through Nov. 21, 2014.
According to today’s plea agreement, several customers on the route complained about numerous pieces of missing mail. The missing mail was concentrated to a limited area and occurred only when Greek was delivering the mail. One resident agreed to cooperate with an investigation. Federal agents prepared an outgoing piece of mail with a delivery address in Lee’s Summit, Mo. The piece of mail contained a greeting card, $20 and a Walmart gift card. On Oct. 18, 2014, the customer placed the piece of mail in her mailbox for Greek to pick up and deliver. Agents observed Greek pick up the piece of mail from the customer’s mail box but the mail item was never delivered to the address in Lee’s Summit. The Walmart gift card was redeemed at Murphy’s Oil in Ozark, Mo., and video surveillance showed Greek redeeming the gift card to purchase gasoline.
A second piece of mail addressed to a non-existant Rogersville address with a return address from Kansas City, Mo. The piece of mail contained a Walmart gift card and was placed with the other mail. Greek sorted and delivered the mail on Nov. 8, 2014, but the item was not returned to the original sender as is proper U.S. Postal procedure. The Walmart gift card was redeemed at a Walmart store in Harrison, Ark. Photos and video surveillance showed Greek redeeming that gift card.
When agents interviewed Greek and searched her vehicle they found six unopened pieces of first-class mail and six pieces of standard mail, which contained gift cards from Visa and Walmart. Greek estimated that she stole and used approximately $200 in gift cards and $200 in cash from the mail, which she used to buy gasoline and food.
Under federal statutes, Greek is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Postal Service, Office of the Inspector General.
Food Service Company Manager Pleads Guilty to Embezzling over $402,000 in Customer PaymentsRead the Press Release
Baltimore, Maryland - Cesar Raphael Barretto, age 44, of Severn, Maryland, pleaded guilty today to wire fraud, in connection with a scheme to embezzle over $402,000 from the company where he worked.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea agreement, Barretto was a territory manager for U.S. Foods, Inc., a company that distributed food and supplies to restaurants, hospitals, hotels, and other businesses. Barretto worked out of the U.S. Foods office in Severn, where he was responsible for helping customers place orders for U.S. Foods products. Barretto transmitted customer orders to the company electronically. The orders were then sent to a regional distribution center where they were picked up by the customer, or picked up and delivered to the customer by Barretto. In addition, Barretto tracked the sales of products in his region and was responsible for collecting the balances due on customers’ invoices. When Barretto received a payment from a customer, he deposited it into the U.S. Foods bank account and emailed the company a collection report, which credited the customer’s account.
According to his plea agreement, from June 2010 through July 2012, Barretto defrauded one of U.S. Food’s customers, American Pollo Restaurant Group, by diverting over $402,000 in payments he received on their account to pay for cases of food that Barretto ordered for himself under the account of another U.S. Foods customer, a bakery located in Langley, Maryland, without that customer’s knowledge.
Specifically, Barretto admitted that he ordered cases of food from U.S. Foods for his own personal use, using the bakery customer’s account. Barretto made sure those products were delivered to the US Foods’ warehouse in Severn, Maryland, where he could pick them up in his car. Barretto paid for the unauthorized purchases by diverting a portion of the payments received from American Pollo to the bakery customer’s account. In collection reports emailed to U.S. Foods, Barretto falsely listed some of American Pollo’s payments as credits to the bakery customer’s account, thereby paying off the outstanding balances created in that account by Barretto’s unauthorized purchases. After Barretto picked up the products he purchased with embezzled funds, he sold them at a discounted price to a restaurant in Laurel, Maryland, in exchange for cash.
Over a two-year period, Barretto paid for more than 300 unauthorized food purchases from US Foods by creating and submitting false collection reports that transferred approximately $402,000 in collection payments from American Pollo to the bakery customer’s account.
As part of his plea agreement, Barretto will be required to pay restitution of $402,680, the full amount of the victim’s losses.
Barretto faces a maximum sentence of 20 years in prison for wire fraud. U.S. District Judge George L. Russell, III, has scheduled sentencing for July 23, 2015, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.
Female Armory Employee Indicted for Illegally Trafficking Firearms from the State of Florida to Puerto RicoRead the Press Release
SAN JUAN, P.R. – Today, a Federal grand jury returned a three-count indictment charging Emily Negrón for conspiracy and illegally transferring firearms to out-of-state residents, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Bureau of Alcohol, Tobacco, Firearms and Explosives is in charge of the investigation.
From in or about August of 2012, continuing through in or about December of 2012, the defendant, knowingly and willfully conspired and agreed with others known and unknown to the Grand Jury to commit offenses against the United States, that are: the transportation of firearms to an out-of-state resident. It was the purpose and object of the conspiracy to make false statements in connection with the purchase of firearms from a Federal Firearms Licensee so the firearms could be transferred from Orlando, Florida to the District of Puerto Rico.
Defendant Negrón knowingly accepted false information about the transferee to avoid the legally required instant criminal background check. In exchange, defendant received something of pecuniary value for each firearm that she facilitated to be delivered to the District of Puerto Rico.
Defendant was arrested in the Orlando Florida area today and is pending removal to the District of Puerto Rico. If convicted, the defendant faces a maximum possible sentence of five years on the conspiracy charge, and five years for each charge alleging a transfer of firearms to an out-of-state resident. The case is being investigated by ATF, and prosecuted by Assistant United States Attorneys Luke Cass and Alexander L. Alum.
An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty. The investigation is ongoing.Federal inmate sentenced for aggravated assault on correctional officerRead the Press Release
Terre Haute inmate serving 20 years for carjacking gets additional time for breaking correctional officer’s nose
PRESS RELEASE
Terre Haute – United States Attorney Josh J. Minkler, today announced the sentencing of an inmate in the Federal Correctional Complex-Terre Haute (FCCTH) for aggravated assault on a federal officer. Joshua A. Waldman, 33, of South Dakota, was found guilty in December of 2014, and sentenced to 60 months additional time by U. S. District Judge Jane Magnus-Stinson.
“Working at the Federal Correctional Complex is a very dangerous job,” said Minkler. “My office will continue to aggressively prosecute anyone who causes harm to our federal employees there.”
Waldman was assigned to the FCCTH, serving a 20 year sentence for a carjacking he committed in South Dakota. In June 2013, Waldman was subjected to a search when officers suspected he may be carrying contraband.
Officers ordered Waldman against a wall to be searched when he head-butted an officer, breaking his nose.
According to Assistant United States Attorney James M. Warden, who prosecuted the case, Waldman will serve his 60 month sentence consecutive to the 20 year sentence he is currently serving for a carjacking conviction.
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Essex County, New Jersey, Man Admits Armed Bank RobberyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted robbing an Investor’s Savings Bank in Irvington, New Jersey, U.S. Attorney Paul J. Fishman announced.
Karim Brunson, 25, of Newark, pleaded guilty before U.S. District Judge William H. Walls in Newark federal court to an indictment charging him with one count of armed bank robbery and one count of using a firearm during a crime of violence.
According to documents filed in this case and statements in court:
Brunson used a .357 caliber handgun to rob an Investor’s Savings Bank in Irvington on June 28, 2014. After entering the bank wearing a mask, Brunson approached a uniformed, off-duty Irvington police officer and pointed a handgun at his head. Brunson then threw a plastic bag to one of the bank tellers and demanded that bank employees fill the bag with money. As Brunson threw the plastic bag to the teller, the off-duty police officer pushed Brunson’s arm down and fought him for the gun in the bank lobby. Brunson was eventually subdued with the help of bank employees and another off-duty Irvington police officer who arrived at the bank during the robbery.
The bank robbery charge carries a maximum potential penalty of 25 years in prison and a fine of up to $250,000. The charge of using a firearm during a crime of violence carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison. Sentencing is scheduled for July 7, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; along with the Irvington Police Department under the direction of Police Director Musa A. Malik; and the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn Murray, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney James Donnelly of the U.S. Attorney’s Organized Crime/Gangs Unit in Newark.
Defense counsel: Richard Roberts Esq., Newark
brunson_karim_indictment.pdf
Eleven Plead Guilty in Heroin Trafficking Conspiracy; Two Plead Guilty to Distribution Resulting in DeathRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TERENCE TAYLOR, age 36; ARTHUR MCKINNIS, age 24; NOEL JONES, age 27; TERRELL DYER, age 30; PERCY DEPRON, age 28; ERNEST DIAZ, age 25; MALCOLM BOLDEN, age 20; TERRELL DAVIS, age 24; and MELVIN SMITH, age 30, all pled guilty today to an Indictment for conspiring to distribute one kilogram or more of heroin in the New Orleans area. TAYLOR and BOLDEN also pled guilty to distribution of heroin resulting in an overdose death. Two additional defendants, NARCISSE TROTTER, age 43, and AARONISHA LEWIS, age 26, also pled guilty to charges of using telephones in furtherance of the conspiracy.
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration (DEA) New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by TAYLOR and MCKINNIS to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation (FBI) to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that TAYLOR and others had been using a residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically, TAYLOR or another dealer would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
U.S. District Judge Kurt D. Engelhardt scheduled sentencing for June 24, 2015, as to all eleven defendants. TAYLOR and BOLDEN will face a sentence of twenty years to life in connection with the overdose death and a sentence of ten years to life regarding the conspiracy. MCKINNIS, JONES, DYER, DEPRON, DIAZ, DAVIS, and SMITH each face a sentence of ten years to life for their roles in the heroin conspiracy. TROTTER’s and LEWIS’s charges carry a sentence of up to four years per count. Trial as to the remaining defendant, THEODORE GRIFFIN, is scheduled for May 4, 2015.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF in investigating this matter with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
Eleven Plead Guilty in Heroin Trafficking Conspiracy; Two Plead Guilty to Distribution Resulting in DeathRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TERENCE TAYLOR, age 36; ARTHUR MCKINNIS, age 24; NOEL JONES, age 27; TERRELL DYER, age 30; PERCY DEPRON, age 28; ERNEST DIAZ, age 25; MALCOLM BOLDEN, age 20; TERRELL DAVIS, age 24; and MELVIN SMITH, age 30, all pled guilty today to an Indictment for conspiring to distribute one kilogram or more of heroin in the New Orleans area. TAYLOR and BOLDEN also pled guilty to distribution of heroin resulting in an overdose death. Two additional defendants, NARCISSE TROTTER, age 43, and AARONISHA LEWIS, age 26, also pled guilty to charges of using telephones in furtherance of the conspiracy.
According to court documents, the investigation of this trafficking organization included multiple court-authorized wiretaps by the Drug Enforcement Administration (DEA) New Orleans Police Department High-Intensity Drug Trafficking Area group, including taps of cell phones used by TAYLOR and MCKINNIS to communicate with suppliers, other co-conspirators, and customers. DEA worked together with agents of the Federal Bureau of Investigation (FBI) to conduct numerous undercover purchases of heroin, surveillance operations, searches, witness debriefings, records analyses, and other investigative techniques to uncover and dismantle the heroin trafficking activities of the group.
The investigation showed that TAYLOR and others had been using a residence in New Orleans East as a base of operations to meet with heroin suppliers, maintain a heroin stash, and provide heroin to other dealers.
Numerous daily heroin customers also called the ‘dope’ phones used by these defendants every day to order heroin. Typically, TAYLOR or another dealer would answer these calls, ask the caller how much heroin he or she wanted to buy, and direct the caller to drive to a gas station or other commercial location in the New Orleans East neighborhood. Through subsequent calls and then visual contact between the customer and dealer, the dealer would direct the customer to rendezvous in a parking lot or on a side street near the commercial location to conduct the heroin sale.
U.S. District Judge Kurt D. Engelhardt scheduled sentencing for June 24, 2015, as to all eleven defendants. TAYLOR and BOLDEN will face a sentence of twenty years to life in connection with the overdose death and a sentence of ten years to life regarding the conspiracy. MCKINNIS, JONES, DYER, DEPRON, DIAZ, DAVIS, and SMITH each face a sentence of ten years to life for their roles in the heroin conspiracy. TROTTER’s and LEWIS’s charges carry a sentence of up to four years per count. Trial as to the remaining defendant, THEODORE GRIFFIN, is scheduled for May 4, 2015.
U.S. Attorney Polite praised the work of the DEA New Orleans Police Department High-Intensity Drug Trafficking Area group, the FBI, and the ATF in investigating this matter with the assistance of the St. Tammany Sheriff’s Office, the St. Bernard Sheriff’s Office, and the Louisiana State Police. Assistant United States Attorneys Michael B. Redmann and Mark A. Miller are in charge of the prosecution.
Department of Justice Announces Investigation of the Dallas County Truancy Court and Juvenile District CourtsRead the Press Release
The Justice Department announced today that it has opened an investigation of Dallas County, Texas’s Truancy Court and Juvenile District Courts. The investigation will focus on whether the courts provide constitutionally required due process to all children charged with the criminal offense of failure to attend school, including whether those protections apply to children whom the county charges with contempt. The investigation will also focus on whether the courts provide meaningful access to the judicial process for children with disabilities.
“Failure to attend school” is a criminal charge under Texas law that is the equivalent of the juvenile status offense of “truancy.” Based on the department’s preliminary review, it believes that the county prosecuted approximately 20,000 failure to attend school cases in 2014.
“The Constitution’s guarantee of due process applies to every individual, regardless of age or disability,” said Attorney General Eric Holder. “This investigation continues the Justice Department’s focus on identifying and eliminating entryways to the school-to-prison pipeline, and illustrates the potential of federal civil rights law to protect the rights of vulnerable children facing life-altering circumstances. As the investigation moves forward, the Department of Justice will work to ensure that actions of Dallas County’s courts are appropriate; that our constitutional protections are respected; and that the children of Dallas County can receive the meaningful access to justice that all Americans deserve.”
“Ensuring that children’s rights under the Constitution and federal law are protected during the court process is a key step to dismantling the school-to-prison pipeline,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We hope to work cooperatively with the county in determining whether it has taken steps to ensure that its juvenile and criminal courts fully respect the rights of the children who come before them.”
“Ensuring that the children of Dallas County appearing before these courts are afforded the full protections afforded them under our constitution is essential to increasing the public’s confidence in the juvenile justice system,” said Acting U.S. Attorney John Parker of the Northern District of Texas.
This investigation will include a comprehensive review of policies, procedures, court documents and statistical data, as well as interviews of individuals knowledgeable about the courts’ processes.
The department will conduct the investigation using its authority under Section 14141 of the Violent Crime Control and Law Enforcement Act of 1994 and Title II of the Americans with Disabilities Act. Section 14141 prohibits a pattern or practice of deprivation of civil rights for juveniles in the administration of juvenile justice. Title II of the Americans with Disabilities Act prohibits discrimination against a qualified individual with a disability in many contexts, including the administration of justice. The department has conducted similar investigations in other jurisdictions, and in 2012 obtained important reforms following its investigation of the Juvenile Court of Memphis and Shelby County, Tennessee.
The Special Litigation Section of the Civil Rights Division is conducting this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by phone at 1-855-258-1433.
Department of Justice Announces Investigation of the Dallas County Truancy Court and Juvenile District CourtsRead the Press Release
WASHINGTON – The Justice Department announced today that it has opened an investigation of Dallas County, Texas’s Truancy Court and Juvenile District Courts. The investigation will focus on whether the courts provide constitutionally required due process to all children charged with the criminal offense of failure to attend school, including whether those protections apply to children whom the county charges with contempt. The investigation will also focus on whether the courts provide meaningful access to the judicial process for children with disabilities.
“Failure to attend school” is a criminal charge under Texas law that is the equivalent of the juvenile status offense of “truancy.” Based on the department’s preliminary review, it believes that the county prosecuted approximately 20,000 failure to attend school cases in 2014.
“The Constitution’s guarantee of due process applies to every individual, regardless of age or disability,” said Attorney General Eric Holder. “This investigation continues the Justice Department’s focus on identifying and eliminating entryways to the school-to-prison pipeline, and illustrates the potential of federal civil rights law to protect the rights of vulnerable children facing life-altering circumstances. As the investigation moves forward, the Department of Justice will work to ensure that actions of Dallas County’s courts are appropriate; that our constitutional protections are respected; and that the children of Dallas County can receive the meaningful access to justice that all Americans deserve.”
“Ensuring that children’s rights under the Constitution and federal law are protected during the court process is a key step to dismantling the school-to-prison pipeline,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We hope to work cooperatively with the county in determining whether it has taken steps to ensure that its juvenile and criminal courts fully respect the rights of the children who come before them.”
“Ensuring that the children of Dallas County appearing before these courts are afforded the full protections afforded them under our constitution is essential to increasing the public’s confidence in the juvenile justice system,” said Acting U.S. Attorney John Parker of the Northern District of Texas.
This investigation will include a comprehensive review of policies, procedures, court documents and statistical data, as well as interviews of individuals knowledgeable about the courts’ processes.
The department will conduct the investigation using its authority under Section 14141 of the Violent Crime Control and Law Enforcement Act of 1994 and Title II of the Americans with Disabilities Act. Section 14141 prohibits a pattern or practice of deprivation of civil rights for juveniles in the administration of juvenile justice. Title II of the Americans with Disabilities Act prohibits discrimination against a qualified individual with a disability in many contexts, including the administration of justice. The department has conducted similar investigations in other jurisdictions, and in 2012 obtained important reforms following its investigation of the Juvenile Court of Memphis and Shelby County, Tennessee.
The Special Litigation Section of the Civil Rights Division is conducting this investigation. Individuals with relevant information are encouraged to contact the department via email at [email protected] or by phone at 1-855-258-1433.
DeRidder woman pleads guilty to stealing more than $1.3 million from her employerRead the Press Release
LAKE CHARLES, La. – United States Attorney Stephanie A. Finley announced today that a DeRidder woman pleaded guilty to stealing more than $1.3 million from her employer.
Lisa H. Ernst, 52, of DeRidder, La., entered a conditional guilty plea for one count of wire fraud to U.S. Magistrate Judge Kathleen Kay. The plea will become final when accepted by U.S. District Judge Patricia Minaldi. According to evidence presented at the guilty plea, Ernst stole $1,351,259.86 from Amerisafe in Deridder, La., where she was employed from May 13, 2003 to March 4, 2014 in various capacities in the accounting department, including as an assistant manager. She made approximately 142 direct interbank transfers from the company’s bank account to her personal bank accounts. In addition to taking the money, she made false representations to company personnel in order to secure approval for the bank transfers, and then after transferring the money, she fabricated documents to conceal fraudulent transactions.
Ernst faces up to 20 years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of July 16, 2015 was set.
The FBI and the DeRidder Police Department conducted the investigation. Assistant U.S. Attorneys Joseph T. Mickel and David C. Joseph are prosecuting the case.
Counterfeit DVD Trafficker SentencedRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court on March 30, 2015, Senior United States District Judge James C. Fox sentenced CHRISTIAN PATRICK LUSARDI, 43,of Fayetteville, North Carolina, to 60 months in prison and 3 years of supervised release for Copyright Infringement and Trafficking in Counterfeit Labels. LUSARDI was ordered to pay $1,137,864.01 restitution. LUSARDI previously pled guilty to these charges on September 2, 2014.
Investigation revealed that several boxes of counterfeit DVDs mailed from China were intercepted by the National Intellectual Property Rights Coordination Center and Customs and Border Protection (CBP). The boxes of counterfeit DVDs were controlled delivered to the identified address. Shortly after the controlled delivery was complete, agents made contact with LUSARDI which resulted in the subsequent search of LUSARDI’s residence. The search resulted in the discovery of over 35,500 counterfeit DVDs. Investigation revealed that between June 2010 and July 2012, LUSARDI was in the business of receiving, manufacturing, and selling counterfeit DVDs in both the United States and Canada. It was determined that LUSARDI received over $1.3 million in his PayPal account during this time period.
The investigation of this case was conducted by the Department of Homeland Security and the United States Postal Inspection Service. The prosecution of the case was handled by Assistant United States Attorney Susan B. Menzer.California Man Indicted on Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that David Eric Crews (54, Sacramento, CA) has been indicted for failing to register as sex offender after traveling from the State of California. If convicted, he faces up to 10 years in federal prison and a potential lifetime of supervision. Crews was arrested on March 30, 2015, at a campground in Bunnell, Florida. He has been ordered detained pending his arraignment and detention hearing on April 2, 2015.
According to the indictment, on or about March 26, 1993, Crews was convicted and sentenced for rape, in concert with force or violence and sexual battery, in Sacramento, California. Between December 2, 2014 and March 13, 2015, he traveled from California to Florida and failed to register as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders. This case was investigated by the United States Marshals Service and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
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 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.
Bonners Ferry Man Pleads Guilty to Violent ATM Theft in McCallRead the Press Release
BOISE — Nathan Paul Davenport, 35, formerly of Bonners Ferry, Idaho, pleaded guilty yesterday to bank larceny by use of a dangerous weapon and use of a deadly weapon in the commission of a felony offense, U.S. Attorney Wendy J. Olson announced. Davenport was indicted by a federal grand jury on April 9, 2014.
According to the plea agreement, on January 10, 2014, Davenport and his co-defendant, Matthew Taber Annable, aiding and abetting each other, broke into and stole cash from an automated teller machine (ATM) located at the Idaho First Bank in McCall, Idaho. Davenport possessed, carried, used, and discharged a firearm, specifically a Ruger semiautomatic rifle, in connection with the offense. Davenport admitted that he used the rifle to shoot at pursuing McCall police officers. As relevant conduct, the indictment charged both men with other ATM larcenies committed against Idaho Banking Company in Boise and Meridian on January 5, 2014, and a conspiracy to commit a string of ATM larcenies in December, 2013 and January, 2014, which occurred in Wyoming, Colorado, Utah, as well as in Idaho.
Davenport did not challenge forfeiture allegations filed for the purpose of forfeiting firearms connected with the crimes, and proceeds of the crimes.
Davenport and Annable were arrested by FBI agents without incident on January 12, 2014, in Orem, Utah, in connection with a separate ATM robbery in Wyoming. The two men were in custody on the Wyoming charges prior to being transported to Boise on the Idaho charges. In the District of Wyoming, both men pleaded guilty to single counts of ATM theft and aiding and abetting and each received a fourteen month prison sentence.
Davenport’s sentencing is set for June 22, 2015, in front of U.S. District Judge Edward J. Lodge. Annable’s plea hearing is scheduled for April 20, 2015, also before Judge Lodge.
The charge of bank larceny by use of a dangerous weapon as charged in the Idaho indictment is punishable by up to 25 years in prison, a maximum fine of $250,000, and up to five years of supervised release. The charge of use of a deadly weapon during the commission of a felony offense is punishable by a mandatory minimum of ten years and up to life imprisonment, a maximum fine of $250,000, and up to five years of supervised release.
The case has been investigated by the Federal Bureau of Investigation, the Idaho State Police, the Valley County Sheriff’s Office, and the McCall Police Department.
Biddeford Man Sentenced to Fifteen Years on Robbery and Firearm ChargesRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Walter Heathcote, 26, of Biddeford, Maine was sentenced yesterday in U.S. District Court by Chief Judge Nancy Torresen to 15 years in prison and five years of supervised release for interference with commerce by robbery and possession of a firearm by a felon. Heathcote pleaded guilty to the charges on December 18, 2014.
Court records reveal that on December 2, 2013, Heathcote was the getaway driver for Charles Reed III and Ryan Forrest who robbed at gunpoint the Family Dollar Store in Biddeford.
As a result of prior convictions, Heathcote was subject to an enhanced sentence as an armed career criminal requiring a mandatory minimum of 15 years in prison.
The investigation was conducted by the Biddeford Police Department, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Attorney General Restricts Use of Asset Forfeiture in Structuring OffensesRead the Press Release
New Policy Limits Seizing Cash Deposited in a Way to Avoid Triggering Bank Reports to Most Serious Cases
As part of the Department of Justice’s comprehensive, ongoing review of the asset forfeiture program, Attorney General Eric Holder today issued a policy focusing the use of asset forfeiture authorities on the most serious illegal banking transactions, restricting civil or criminal forfeiture seizures for structuring until after a defendant has been criminally charged or has been found to have engaged in additional criminal activity, in most cases.
“With this new policy, the Department of Justice is taking action to ensure that we are allocating our resources to address the most serious offenses,” said Attorney General Holder. “Appropriate use of asset forfeiture law allows the Justice Department to safeguard the integrity, security and stability of our nation’s financial system while protecting the civil liberties of all Americans. And as we continue our comprehensive review of the Asset Forfeiture Program, we will stay focused on deterring criminal activity, assisting victims of wrongdoing and defending the rights of our citizens.”
Structuring generally occurs when, instead of conducting a single transaction in currency in an amount that would require a report to be filed or record made by a domestic financial institution, the violator conducts a series of currency transactions, willfully keeping each individual transaction at an amount below applicable thresholds to evade reporting or recording. In addition to being a stand-alone offense, structuring is a crime that often occurs in connection with other criminal activity.
Under the new policy, in the absence of criminal charges, judicially authorized warrants to seize bank accounts involved in structuring can only be obtained if the prosecutor first develops probable cause of additional federal criminal activity and that determination is approved by a supervisor. Otherwise, a prosecutor may ask a judge to issue a seizure warrant only if either the U.S. Attorney or the Chief of the Criminal Division’s Asset Forfeiture and Money Laundering Section personally determines that seizure would serve a compelling law enforcement interest.
In addition, the new policy imposes important protections after a seizure has taken place. The policy requires a prosecutor to promptly direct a seizing agency to return funds if the prosecutor determines that there is insufficient admissible evidence to prevail in a criminal or civil trial. The policy also imposes a 150-day deadline to file a criminal indictment or civil complaint against the seized funds, or otherwise directs a return of the full amount of the seized funds. Finally, the policy requires a formal, written settlement agreement vetted by a federal prosecutor for settlements of structuring offenses.
This new policy is the most recent result of the department’s ongoing review of the Asset Forfeiture Program to ensure that asset forfeiture – a critical law enforcement tool – can continue to be used to appropriately take the profits out of crime and return assets to victims, all while safeguarding civil liberties.
The policy was developed by the Asset Forfeiture and Money Laundering Section of the Criminal Division and the Attorney General’s Advisory Committee of U.S. Attorneys. The policy applies to all Department of Justice attorneys.
Attorney General's Memorandum and the Structuring Policy Directive
Attorney and Fiance Sentenced for Aiding and Abetting Custom’s ViolationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Benjamin Natter, 32, an attorney, and his fiancé Ruth Martinez, 37, both of New York, who were convicted of aiding and abetting the failure to present a vehicle for inspection to customs officers, were each sentenced to pay a $5,000 fine by U.S. Magistrate Judge Jeremiah J. McCarthy. Martinez also forfeited a Land Rover Defender.
Assistant U.S. Attorney Carol Bridge, who handled the case, stated that in May 2013, defendant Natter purchased an alleged 1985 Land Rover Defender from a seller in England. Natter then paid a friend to import the car into Canada.
On October 19, 2013, the friend who imported the car into Canada attempted to drive the Land Rover into the United States at the Rainbow Bridge Port of Entry. The plates used on the car were provided to the friend by Natter and Ruth Martinez.
The friend was pulled over by Custom and Border Protection Officers for a secondary inspection. During a search of the vehicle, officers found the vehicle’s actual license plates from England. Although the friend claimed that the Land Rover was produced in 1985, further inspection revealed the vehicle was in fact produced after 1985. The age of the vehicle prevented it from legally entering the United States due to the fact that the National Highway Safety Traffic Association does not allow the importation of any vehicle less than 25 years old without a safety inspection. The Land Rover was then seized by officers.
During the course of the investigation, both defendants provided false information to CBP officers regarding ownership and origin of the vehicle. After further investigation, it was learned that Natter was a collector of Land Rover Defender vehicles and orchestrated the smuggling attempt.
The sentencings are the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Ambulance Company Co-Owner Sentenced to Six Years for FraudRead the Press Release
PHILADELPHIA – Nazariy Kmet, 37, of Jamison, PA, a co-owner and the President of Life Support Corporation (Life Support), was sentenced today to 72 months in prison, for an extensive health care fraud scheme. The defendant pleaded guilty to health care fraud conspiracy and paying kickbacks. The company, Life Support, which is now defunct, had been located in the Feasterville-Trevose area and had been incorporated in 2010.
The defendant owned and operated Life Support, an ambulance company that transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. The defendant, or others acting on his behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendant and his employees knew that the patients could be transported safely by other means and that many of them were able to walk. The defendant paid kickbacks to patients so that the patients would continue to be transported by Life Support, as opposed to any other ambulance company. The defendant billed for the ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program paid more than $1.9 million and Highmark, Inc. paid an additional amount in excess of $150,000 for this inappropriate method of transportation.
In addition to the prison term, U.S. District Court Judge Nitza I. Quinones Alejandro ordered restitution of $1,912,526.32 to Medicare; restitution of $150,938.78 to Highmark, Inc.; a money judgment of $1,912,526.32; three years of supervised release to follow imprisonment, and forfeiture of vehicles. The defendant could also be excluded from participating in federal health care programs. He must surrender to begin serving his prison term on May 18, 2015.
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Albuquerque Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jean Claud Mills, 31, of Albuquerque, N.M., entered a guilty plea in federal court this morning to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Mills will be sentenced to 11 years in federal prison followed by a term of supervised release to be determined by the court.
Mills was arrested on May 16, 2014, on a criminal complaint charging him with possession of methamphetamine with intent to distribute and using and carrying a firearm in furtherance of a drug trafficking crime. Mills subsequently was indicted on June 11, 2014, and charged with (1) possession of methamphetamine with intent to distribute, (2) being a felon in possession of firearms and ammunition, and (3) using and carrying a firearm in relation to a drug trafficking crime. Court records reflect that in May 2014, Mills was prohibited from possessing firearms and ammunition because he previously had been convicted of felony offenses including possession of narcotics with intent to distribute and conspiracy to tamper with evidence.
According to the criminal complaint, on May 15, 2014, Mills attempted to sell a pound of methamphetamine to undercover detectives of the Albuquerque Police Department (APD) for $13,000.00. The APD detectives recovered a handgun and two magazines of ammunition from an open glove compartment in Mills’ vehicle.
During today’s change of plea hearing, Mills pled guilty to Counts 1 and 2 of the indictment. Mills admitted that on May 15, 2014, he sold a pound of methamphetamine to two men for $13,000.00, and was arrested by law enforcement officers before he got into his vehicle to leave. Mills further admitted that on that day he possessed a firearm even though he was a convicted felon and was on probation.
Mills has been in federal custody since his arrest and remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Border Enforcement Security Task Force of the Albuquerque office of Homeland Security Investigations (HSI) and APD. Assistant U.S. Attorney Presiliano Torrez is prosecuting the case.
30 March 2015
Wichita Man Sentenced to 6+ Years in Federal Mail Theft, Firearm CaseRead the Press Release
WICHITA, KAN. – A Wichita man was sentenced Monday to 78 months in federal prison in a federal mail theft case, U.S. Attorney Barry Grissom said.
Justin D. Anderson, 27, Wichita, Kan., pleaded guilty to one count of mail theft, one count of bank fraud and one count of unlawful possession of a firearm. In his plea he admitted that on Oct. 22, 2013, he and another person removed mail addressed to Geico Insurance from a U.S. Postal service mail receptacle in Wichita.
On Nov. 5, 2013, he presented and cashed an altered check at the Credit Union of America in Wichita. The check originally was written in the amount of $800 and made payable to Dewen Loan Servicing. He altered the check by adding his name to the payee line. He admits the check was stolen from a U.S. Postal Service mail receptacle.
In addition, he admitted that on Oct. 7, 2013, he possessed a 9 mm pistol. At the time he was prohibited from possessing a firearm because he had a prior felony conviction.
Grissom commended the U.S. Postal Inspection Service, the Sedgwick County Sheriff’s Department, the Wichita Police Department, the Derby Police Department and Assistant U.S. Attorney Debra Barnett for their work on the case.
Wheeling man convicted of possession of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Bernie George Baier, 51, of Wheeling, was convicted in federal court today of possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Wheeling Police Department, the West Virginia State Police, and the Federal Bureau of Investigation revealed that Baier obtained a wireless Internet password from his neighbor. He then used the neighbor’s wireless Internet connection to download images of child pornography throughout late 2014.
Baier, who was convicted in 1995 of the felony offense of “Gross Sexual Imposition” in Belmont County, Ohio, pled guilty today to one count of “Possession of Child Pornography.” He faces between 10 and 20 years in prison and fine of up to $250,000.00. Under the Fe¬¬¬deral Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government.
U.S. Magistrate Judge James E. Seibert presided.