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26 March 2015
Philadelphia Man Charged with Straw Purchasing GunsRead the Press Release
PHILADELPHIA – Robert Alton Stukes, 22, of Philadelphia, PA, was charged today by indictment with three counts of making false statements to a firearms dealer, announced United States Attorney Zane David Memeger. According to the indictment, on three separate occasions - January 15, 2014, January 17, 2014, and March 7, 2014 - Stukes straw purchased guns from Delaware Valley Sports Center, Inc., located at 101 Geiger Road in Philadelphia, PA.
The indictment alleges that Stukes bought a rifle and three handguns for Anthony Andrews, charged elsewhere, who was a convicted felon, having been convicted in a court of the Commonwealth of Pennsylvania.
If convicted of all counts, Stukes faces a possible advisory sentencing guideline range of at least 21 months in prison, with a maximum statutory sentence of 25 years in prison, a fine of up to $250,000, a $400 special assessment, and three years of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Jose Arteaga.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Charged with Robbing Car Title OfficeRead the Press Release
PHILADELPHIA - Jahmal Williams, 27, of Philadelphia, Pennsylvania was charged today by indictment with robbery which interferes with interstate commerce, brandishing a firearm during and in relation to a crime of violence, and possession of a firearm by a convicted felon, announced United States Attorney Zane David Memeger. The charges arise from the defendant’s gunpoint robbery of Tag It Tag Agency, a vehicle registration and title transfer company, located at 4973 Lancaster Avenue, in Philadelphia, Pennsylvania.
If convicted the defendant faces a maximum possible sentence of life imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is being prosecuted by Assistant United States Attorney Yvonne Osirim.
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacist Sentenced in Manhattan Federal Court to 36 Months in Prison for Multimillion-Dollar Medicare/Medicaid Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that PURNA CHANDRA ARAMALLA was sentenced today to 36 months in prison, and ordered to pay over $7 million in restitution, for conducting a scheme to defraud Medicaid, Medicare, and the New York State-funded AIDS Drug Assistance Program (“ADAP”) through the purchase and sale of illegally diverted prescription drugs, including HIV medication. ARAMALLA was also sentenced for tax evasion. He was sentenced by U.S. District Judge Paul A. Crotty.
Manhattan U.S. Attorney Preet Bharara said: “Purna Aramalla’s prescription drug diversion scheme defrauded millions of dollars from programs established to provide health care assistance for the elderly and indigent. The scheme also jeopardized the health of anyone induced to sell his or her prescription or medication, and anyone who unwittingly purchased repackaged drugs.”
ARAMALLA, a pharmacist, owned and operated A Fair Deal Pharmacy Inc. in Queens, New York, and Quality Drug Inc. in the Bronx, New York. Using these pharmacies, ARAMALLA carried out a multimillion-dollar scheme to defraud the New York State Medicaid, Medicare, and ADAP programs through the sale of diverted prescription drugs, that is, drugs not obtained from legitimate sources.
As part of the scheme, ARAMALLA purchased prescription drugs, including high-cost medications used to treat HIV, that were obtained from patients who sold the drugs rather than use them to treat their illnesses. ARAMALLA then repackaged and resold those prescription drugs to his customers, as if they were new drugs obtained from legitimate sources. ARAMALLA requested and received reimbursement from Medicaid, Medicare, and ADAP in connection with these sales, even though these programs would not have been willing to reimburse the cost of second-hand drugs. In addition, in some cases, these programs had already paid for the prescription drugs when they were initially dispensed. In order to make the diverted drugs appear to be new drugs from legitimate sources, ARAMALLA and his co-conspirators used lighter fluid and other means to dissolve the adhesive on the patient labels on prescription bottles so that they could be removed and replaced with new labels.
ARAMALLA also sought and obtained reimbursement for prescription drugs that were never actually dispensed to patients. Instead, customers with prescriptions for drugs essentially “sold” their prescriptions to ARAMALLA, agreeing not to take delivery of the drugs in exchange for a share of the reimbursed proceeds.
From January 2010 to September 2013, ARAMALLA’s pharmacies received more than $10 million in reimbursements from Medicaid, Medicare, and ADAP that cannot be accounted for by ARAMALLA’s purchases from legitimate wholesalers.
In addition to his prison term, ARAMALLA, 67, of Port Washington, New York, was ordered to forfeit $7,503,605, pay restitution to his victims in the same amount, file amended tax returns for the years 2010 through 2012, and pay back taxes and applicable penalties.
Mr. Bharara praised the outstanding investigative work of the New York FBI Health Care Fraud Task Force and the Internal Revenue Service. He also thanked the U.S. Department of Health and Human Services, Office of Inspector General, the New York State Office of Medicaid Inspector General, and the New York City Human Resources Administration.
The New York FBI Health Care Fraud Task Force was formed in 2007 in an effort to combat health care fraud in the greater New York City area. The task force comprises agents, officers, and investigators from the Federal Bureau of Investigation, the New York City Police Department, the New York State Insurance Fraud Bureau, U.S. Department of Labor, U.S. Office of Personnel Management Inspector General, U.S. Food and Drug Administration, New York State Attorney General's Office, New York State Office of Medicaid Inspector General, New York State Health and Hospitals Inspector General, and the National Insurance Crime Bureau.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Niketh Velamoor and Andrew Adams are in charge of the prosecution.
Owings Mills Felon Pleads Guilty to Illegal Possession of a GunRead the Press Release
Baltimore, Maryland –Darrick Jerome Greer, age 25, of Owings Mills, Maryland, pleaded guilty today to being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Colonel William M. Pallozzi, Acting Superintendent of the Maryland State Police.
According to his plea, on September 26, 2014, Greer was driving a vehicle that was stopped by a Maryland State Police trooper. The trooper discovered that Greer possessed a loaded .380 caliber semi-automatic handgun, which had been stolen from its originally registered owner.
At the time, Greer was on release, pending sentencing in a bank fraud case in which he used the personal identifying information of over 50 individuals, resulting in a total loss to two banks of $183,846.96.
Greer had previously been convicted of a felony and therefore was prohibited from possessing a firearm or ammunition. In addition, Greer’s conditions of release precluded his committing any federal, state or local offenses.
Greer faces a maximum sentence of 10 years in prison. U.S. District Judge J. Frederick Motz has scheduled Greer’s sentencing for June 3, 2015, at 9:30 a.m.
On November 21, 2014, Judge Motz sentenced Greer to 42 months in prison for bank fraud and aggravated identity theft and ordered Greer to pay restitution of $183,846.96.
United States Attorney Rod J. Rosenstein commended the ATF, Secret Service and Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham, who is prosecuting the case.
One Man Arrested While Attempting to Travel Abroad; Both Chicago Area Men Spoke of Using Army Uniforms, Military Knowledge and Access to Attack Illinois Military InstallationRead the Press Release
CHICAGO ― U.S. Attorney Zachary T. Fardon of the Northern District of Illinois, Assistant Attorney General for National Security John P. Carlin, and Special Agent in Charge Robert Holley of the FBI’s Chicago Division announced today that two Aurora, Illinois, men were arrested Wednesday night for allegedly conspiring to provide material support to Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization.
Army National Guard Specialist Hasan Edmonds, 22, a U.S. citizen, was arrested without incident at Chicago Midway International Airport by members of the Chicago FBI’s Joint Terrorism Task Force (JTTF) while attempting to fly to Cairo, Egypt. Jonas Edmonds, 29, a U.S. citizen, was arrested without incident at his home in Aurora. After the arrests on Wednesday night, agents executed search warrants at the residences of both defendants. The defendants were charged in a criminal complaint filed yesterday in U.S. District Court of the Northern District of Illinois with one count of conspiring to provide material support and resources to a foreign terrorist organization. The initial appearances of Hasan Edmonds and Jonas Edmonds are scheduled at 3:00 p.m. today before U.S. Magistrate Judge Sheila Finnegan.
As alleged in the complaint, in late 2014, Hasan Edmonds came to the attention of the FBI. The investigation subsequently revealed that he and Jonas Edmonds had devised a plan for Hasan Edmonds to travel overseas for the purpose of waging violence on behalf of ISIL. Hasan Edmonds, a current member of the Illinois Army National Guard, planned to use his military training to fight on behalf of ISIL. As part of their plans, Hasan Edmonds booked airline travel to depart yesterday from Chicago and arrive in Cairo today, with layovers in Detroit and Amsterdam.
As alleged in the complaint, both defendants also planned for Jonas Edmonds to carry out an act of terrorism in the United States after Hasan Edmonds departed. In particular, both defendants met with an FBI undercover employee and presented a plan to carry out an armed attack against a U.S. military facility in northern Illinois, an installation where Hasan Edmonds had been training. Jonas Edmonds asked the FBI undercover employee to assist in the attack and explained that they would use Hasan Edmonds’ uniforms and the information he supplied about how to access the installation and target officers for attack.
“We will pursue and prosecute with vigor those who support ISIL and its agenda of ruthless violence,” said U.S. Attorney Fardon. “Anyone who threatens to harm our citizens and allies, whether abroad or here at home, will face the full force of justice.”
“According to the charges filed today, the defendants allegedly conspired to provide material support to ISIL and planned to travel overseas to support the terrorist organization,” said Assistant Attorney General Carlin. “In addition, they plotted to attack members of our military within the United States. Disturbingly, one of the defendants currently wears the same uniform of those they allegedly planned to attack. I want to thank the many agents, analysts, and prosecutors who are responsible for disrupting the threat posed by these defendants.”
“The arrests today are the culmination of a successful investigation that involved a great deal of coordination and communication with our law enforcement and military partners,” said Special Agent in Charge Holley. “Throughout the course of this investigation, the defendants were closely and carefully monitored to ensure the safety of the public and our service men and women.”
Conspiring to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The case was investigated by the FBI’s JTTF, which is comprised of special agents of the FBI, officers of the Chicago Police Department and representatives from an additional 20 federal, state and local law enforcement agencies. Assistant Attorney General Carlin joins U.S. Attorney Fardon in extending his appreciation to the JTTF.
The Chicago Police Department, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), the Illinois State Police, the Aurora Police Department and the Illinois National Guard also provided significant assistance.
The government is being represented by Assistant U.S. Attorneys Barry Jonas and John Kness of the Northern District of Illinois, and Trial Attorney Lolita Lukose of the National Security Division’s Counterterrorism Section.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
New Yorker Sentenced to 12 Months in Federal Prison for Marijuana Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Gary Anthony Harris, 50, of Carle Place, N.Y., was sentenced this morning in federal court in Las Cruces, N.M., to 12 months in federal prison followed by two years of supervised release for his conviction on marijuana trafficking charges.
Harris and co-defendant Eric Bernard Harris, 46, of St. Albans, N.Y., were charged by criminal complaint on Aug. 8, 2013, with conspiracy to distribute marijuana. The criminal complaint stated that on July 27, 2011, Carl Francis Carter, 61, of Deptford, N.J., was arrested in Hidalgo County, N.M., after an officer of the New Mexico Department of Public Safety Motor Transportation Division found 527 kilograms (1163 pounds) of marijuana concealed in Carter’s commercial vehicle during a routine inspection. Subsequent investigation by Homeland Security Investigations (HSI) linked Gary Harris and Eric Harris to the marijuana seized from Carter.
According to the criminal complaint, Carter had been in communication with Gary Harris on the night of his arrest, and Eric Harris had attempted to contact Carter the morning after his arrest. Investigations also revealed that Gary Harris and Eric Harris traveled from New York to Phoenix, Ariz., on July 17, 2011, to facilitate the purchase of the marijuana found in Carter’s commercial vehicle and to transport it from Tucson, Ariz., to New York. Gary Harris and Eric Harris traveled back to New York on July 27, 2011, following Carter’s arrest.
On Aug. 13, 2013, HSI agents arrested Gary Harris in Carle Place, N.Y., and Eric Harris in New York, N.Y. The two men subsequently appeared in Las Cruces federal court to face the charges against them. On Nov. 13, 2013, Gary Harris and Eric Harris were indicted and charged with conspiracy and possession of marijuana with intent to distribute.
On March 4, 2014, Gary Harris pleaded guilty to possession of marijuana with intent to distribute. In his plea agreement, Gary Harris admitted possession of 300 pounds of the marijuana that was found in Carter’s commercial vehicle. He also acknowledged that Carter was hauling a total of 527 kilograms (1163 pounds) of marijuana when he was arrested on July 27, 2011. Gary Harris further admitted traveling from New York to Phoenix to facilitate the purchase and transportation of the marijuana seized from Carter. As part of his plea agreement with the U.S. Attorney’s Office, Gary Harris forfeited $52,882.97 in drug proceeds which were seized from two bank accounts and a safe deposit box by HSI pursuant to seizure warrants.
Carter pled guilty to a marijuana trafficking charge on Jan. 31, 2012, and admitted knowingly possessing 527 kilograms of marijuana on July 27, 2011. Carter admitted knowing that the marijuana was concealed in his commercial vehicle and that he expected to be paid for delivering the marijuana for further distribution. Carter’s sentencing hearing has yet to be scheduled. He faces a penalty of not less than five years and not more than 40 years in prison when he is sentenced.
On March 7, 2014, Eric Harris pleaded guilty to both counts of the Indictment charging him with conspiracy to distribute marijuana and possession of marijuana with intent to distribute, and admitted conspiring with Gary Harris, Carter and others to distribute the 527 kilograms of marijuana found in Carter’s commercial vehicle. At sentencing, Eric Harris faces a sentence of not less than five years and not more than 40 years in prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Deming office of HSI with assistance from the New Mexico Department of Public Safety Motor Transportation Division, and is being prosecuted by Assistant U.S. Attorneys Randy M. Castellano and Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office.
New Orleans Woman Pleads Guilty to Theft of Bank FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GAIL TEAGUE, 48, of New Orleans, pled guilty yesterday to defrauding Ochsner Federal Credit Union in connection with the theft of funds during her employment.
According to the Bill of Information, TEAGUE was employed by Ochsner Federal Credit Union, first as a part-time employee and subsequently as office manager at the credit union from approximately 2000 until approximately May 2013. TEAGUE admitted to stealing $34,000 by creating a fraudulent loan. Specifically, in or around January, 2013, TEAGUE created a fictitious loan in the name “William Morris.” This loan was disbursed in the form of an official credit union check made payable to a local automobile dealership. The check was redeposited into the credit union. TEAGUE then withdrew $34,000 cash from the vault. Credit Union auditors interviewed TEAGUE and she signed a hand written confession on May 17, 2013 acknowledging that she stole $34,000.
TEAGUE faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000 and up to three years of supervised release. U.S. District Judge Stanwood R. Duval, Jr. set sentencing for July 15, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the National Credit Union Administration in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
New Hampshire Man Pleads Guilty to String of Armed RobberiesRead the Press Release
BOSTON – A Salem, New Hampshire man pleaded guilty today to committing six armed bank robberies in the Merrimack Valley area in 2013.
Rafael Beamud, Jr., 34, pleaded guilty today to six counts of armed robbery and one count of possession of a firearm in furtherance of his crimes. U.S. District Court Judge Denise J. Casper scheduled sentencing for June 18, 2015.
On Feb. 21, 2013, Beamud walked into a TD Bank in Methuen. He approached a teller, brandishing a firearm, and ordered the teller to empty the cash drawers, making sure there was no “dye pack” put into plastic bags that he provided. Beamud threatened to shoot if an alarm was tripped. The teller placed the money from the drawers into one of the plastic bags and Beamud left the bank, leaving one of the plastic bags behind. The bag was processed for fingerprints which led to Beamud’s identification. He was arrested in April 2013 whereupon he confessed to committing a total of 16 armed robberies across three New England states, including 13 in Massachusetts.
The charge of armed robbery provides a sentence of no greater than 25 years in prison, five years supervised release, and $250,000 fine on each count. The charge of brandishing a firearm during the commission of a crime of violence provides for a mandatory minimum term of seven years in prison with no greater than a lifetime in prison, five years of supervised release, and a $250,000 fine. 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 Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was also provided by the Drug Enforcement Administration; Salem, N.H., North Andover, Dracut, and Methuen Police Departments; and the Massachusetts State Police. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte of Ortiz’s Major Crimes Unit.
Navajo Man from Magdalena Pleads Guilty to Federal Child Sexual Abuse ChargesRead the Press Release
ALBUQUERQUE – Chris Apachito, 41, an enrolled member of the Navajo Nation who resides in Magdalena, N.M., pleaded guilty this morning in federal court in Albuquerque, N.M., to a felony information charging him with sexually abusing four minor females over a twenty-one-year period. Under the terms of his plea agreement, Apachito will be sentenced to 25 years in federal prison followed by a term of supervised release to be determined by the court. Apachito will be required to register as a sex offender after completing his prison sentence.
Apachito was arrested on Nov. 21, 2014, on an indictment alleging the he sexually abused a child under the age of 16 from May 2012 through Jan. 2014. The indictment alleged that Apachito violated the young victim in locations within the Navajo Indian Reservation in Socorro County, N.M.
During today’s hearing, Apachito entered a guilty plea to a felony information charging him with having unlawful sexual contact with four children between 1991 and 2012. In entering his guilty plea, Apachito admitted sexually molesting an eight-year-old child and a six-year-old child between Sept. 1991 and Oct. 1991. He also admitted sexually molesting a 16-year-old child in March 2006, and a 13-year-old child between May 2012 and Sept. 2012. Apachito admitted that he committed these crimes in Alamo, N.M., which is within the Navajo Indian Reservation.
Apachito has been in the custody of the U.S. Marshals Service since his arrest and will remain detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Navajo Nation Division of Public Safety. The case is being prosecuted by Assistant U.S. Attorneys Kristopher N. Houghton and Niki Tapia-Brito as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Navajo Man from Arizona Sentenced for Federal Misdemeanor Assault Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Calvin Fuson, 44, an enrolled member of the Navajo Nation who resides in Winslow, Ariz., was sentenced this morning in federal court in Albuquerque, N.M., to 345 days or time served in federal prison for his misdemeanor assault conviction.
Fuson was arrested on April 17, 2014, on a criminal complaint alleging that on Dec. 25, 2013, he assaulted a Navajo man by stabbing him with a knife. According to the complaint, officers of the Navajo Nation Division of Public Safety responded to a call reporting a stabbing that occurred in Naschitti, N.M., which is located on the Navajo Indian Reservation. The victim was treated for a stab wound. Fuson subsequently was indicted and charged with assault resulting in serious bodily injury and assault with a dangerous weapon.
On Feb. 12, 2015, Fuson pled guilty to a misdemeanor information charging him with assault by striking, beating or wounding. In entering his guilty plea, Fuson admitted that on Dec. 25, 2013, while at his family’s residence in Naschitti, he stabbed the victim, a 50-year-old Navajo man, with a knife during a fight. Both Fuson and the victim required medical treatment for injuries he sustained during the fight.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Nampa Woman Pleads Guilty to Distribution of MethamphetamineRead the Press Release
BOISE – Brandi Larrea, 31, of Nampa, Idaho, pleaded guilty today in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced. Larrea was indicted on October 15, 2014.
According to the plea agreement, Larrea admitting selling methamphetamine at her residence in Nampa, Idaho, on five separate occasions in January and March of 2013, and from March to May of 2014, totaling 33.3 grams of actual methamphetamine. In June of 2013, law enforcement agents with the Treasure Valley Metro Violent Crimes Task Force and the Federal Bureau of Investigation searched the defendant's residence pursuant to a search warrant and discovered 24 grams of actual methamphetamine and digital scales.
Distribution of methamphetamine is punishable by up to 20 years imprisonment, a $1,000,000 fine, and at least three years of supervised release. As part of her plea, Larrea also agreed to forfeit at least $1,835.00 in cash proceeds of the charged offenses.
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 the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force iscomprised 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.
McDowell County woman sentence in federal court for filing fraudulent water quality reportsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Bonita Witt-Hird, 60, of Thorpe (McDowell County), West Virginia, was sentenced today to one year and one day in federal prison for filing fraudulent water quality reports.
Witt-Hird was formerly employed as the office manager for Richmorr Associates, Inc., an environmental engineering firm in Elkview, West Virginia. Richmorr provides water sampling services to wastewater treatment plants throughout West Virginia. Wastewater plants are required by state and federal law to sample wastewater discharges. The results are submitted to the West Virginia Department of Environmental Protection (WVDEP). WVDEP reviews the results to ensure compliance with water quality standards. In the event of non-compliance, WVDEP may levy fines or, in extreme cases, shut down the wastewater treatment plant.
In November of 2015, Witt-Hird pleaded guilty admitting that from April of 2012 to June of 2013, she filed approximately 80 false reports with the WVDEP. The false reports made it appear that current water quality sampling had been performed for the wastewater plants when, in fact, the test results had been copied from previous years.
Witt-Hird previously plead guilty in September of 2013 to obstructing an IRS investigation and served a one year sentence imposed for that offense.
The wastewater investigation was conducted by the Environmental Protection Agency, Criminal Investigation Division, the WVDEP and the Federal Bureau of Investigation. Assistant United States Attorney Erik S. Goes was responsible for the prosecution.
Marion Illinois Woman Sentenced to Prison for Participating in Conspiracy to Defraud the Internal Revenue ServiceRead the Press Release
Tajuana L. Sullivan, 27, of Marion, Illinois, was sentenced to a total of thirty-eight months in prison for her role in a conspiracy to defraud the Internal Revenue Service by submitting numerous false federal tax returns. Her sentence included a two year prison sentence for aggravated identity theft for using a stolen identity of another in submitting a fraudulent tax return, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Sullivan was ordered to pay restitution in the amount of $98,091.53 as a condition of three years supervised release following her prison sentence.
Facts which led to the case showed that on February 19, 2013, deputies with the Shelby County Sheriff’s Office conducted a traffic stop on a vehicle driven by Sullivan. Approximately 53 debit cards and a notebook with names and identifying information were found in Sullivan’s possession.
This information was turned over to the IRS Scheme Development Center (SDC), which utilizes databases to research possible tax refund fraud schemes. The SDC linked tax returns based on the notebook containing identifying information found in Sullivan’s vehicle, internet protocol (IP) addresses, employers, occupations, and electronic filing identification numbers (EFIN), which revealed a tax refund scheme, some of which involved stolen identities. The data provided by the SDC consisted of 2011 and 2012 tax returns, which were filed during the years 2012 and 2013, respectively. This tax refund scheme consisted of approximately 86 federal income tax returns, which claimed approximately $283,700 in fraudulent tax refunds.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations, the U.S. Postal Inspection Service, the U.S. Secret Service, and the Shelby County Sheriff's Office. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Major Drug Trafficker Sentenced in Manhattan Federal Court to Life Plus 30 Years in Prison for Two Murder-For-Hire Conspiracies, Attempted Murder, and Narcotics and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROGER KEY, a/k/a “Luchie,” a violent and large-scale drug trafficker who operated in Manhattan and the Bronx, New York, was sentenced today in Manhattan federal court to life plus 30 years in prison in connection with his role in carrying out two murder-for-hire conspiracies – resulting in the murder of one victim and the near-fatal shooting of an innocent bystander – attempted murder, and narcotics and firearms offenses. KEY was convicted in April 2014 following a three-week jury trial before U.S. District Judge Sidney H. Stein, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “With today’s sentence, Roger Key has been punished with life in prison for his lethal laundry list of murder, gun, and drug-related offenses, and the Southern District of New York is safer as a result. I would like to thank our federal and local law enforcement partners for helping us to develop and bring this case.”
According to court documents, the evidence presented at trial, and today’s proceedings:
From 2009 through September 2012, KEY supplied powder cocaine and crack cocaine to various drug organizations operating in Manhattan and the Bronx. KEY also used, carried, and possessed firearms during the narcotics conspiracy.
In September 2010, KEY hired a co-conspirator to murder Terry Harrison. Harrison was shot and killed on September 10, 2010, at 681 Courtlandt Avenue in the Bronx. Harrison was the leader of a rival drug-trafficking crew with whom KEY and his co-conspirators were engaged in a violent conflict over drug-trafficking territory in the Bronx.
From October 2011 through December 2011, KEY hired a co-conspirator to kill Matthew Allen, and aided and abetted the attempted murder-for-hire of Matthew Allen on November 16, 2011, which resulted in the non-fatal shooting of another victim, at 302 Brooklyn Avenue, Brooklyn, New York.
In addition to the prison term, KEY, 38, of the Bronx, New York, was sentenced to 10 years of supervised release.
At trial, KEY was convicted of narcotics conspiracy, conspiracy to commit the murder-for-hire of Matthew Allen, the attempted murder-for-hire of Matthew Allen, conspiracy to commit the murder-for-hire of Terry Harrison, and firearms possession and use in connection with both the narcotics conspiracy and the Matthew Allen murder plot. KEY was acquitted at trial of the murder-for-hire of Terry Harrison, murder in connection with a drug crime, and a firearms possession charge in connection with that murder.
KEY is the last of 18 defendants originally charged in this case to be convicted and sentenced in proceedings before Judge Stein. He is also the last of a total of four individuals who have been convicted and sentenced for offenses relating to the conspiracy to commit the murder-for-hire and the attempted murder-for-hire of Matthew Allen.
Mr. Bharara praised the outstanding work of the Federal Bureau of the Investigation, the Westchester County Violent Crimes Task Force, and the New York City Police Department, including the 40th Precinct Detective Squad and the Manhattan North Narcotics Major Case Unit, who conducted the investigation of the case. Mr. Bharara also thanked the New York County District Attorney’s Office, who provided critical assistance in the investigation and prosecution of the case.
This case is being overseen by the Office’s Violent & Organized Crime Unit. Assistant United States Attorneys Abigail S. Kurland and Adam Fee are in charge of the prosecution.
Kentucky man indicted for defrauding U.S. Department of Veteran's AffairsRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced today that a Kentucky man was indicted on March 25, 2015, by a federal grand jury sitting in Charleston for allegedly defrauding the U.S. Veteran’s Affairs (VA) Disability Compensation Program. The indictment charges Phillip M. Henderson, 50, of Olive Hill, Kentucky with fraudulently receiving approximately $800,000 in compensation and other benefits, including funds for the installation of a swimming pool and a vehicle, from March 17, 1995 to February 27, 2015. The indictment includes nine counts of wire fraud, which reflect payments from the VA to Henderson.
Each count carries a statutory maximum of 30 years and a $1,000,000 fine upon conviction.
The U.S. Department of Veteran’s Affairs, Office of Inspector General, is conducting the investigation, assisted by the Federal Bureau of Investigation. Assistant United States Attorney Eumi L. Choi is in charge of the prosecution.
A copy of the indictment is linked below Henderson Indictment.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
KCI Baggage Handler Sentenced for Child Porn After Cell Phone Found in Dallas AirportRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former airport baggage handler whose lost cell phone was discovered at a Dallas, Texas airport – along with images of child pornography – was sentenced in federal court today.
Jason W. Duncan, 34, of Platte City, was sentenced by U.S. District Judge Brian C. Wimes to six years and six months in federal prison without parole.
On Sept. 18, 2014, Duncan pleaded guilty to attempting to receive child pornography.
In 2012 Jason Duncan worked as a baggage handler for Southwest Airlines at Kansas City International Airport. On March 12, 2012, Duncan was loading bags on a plane when he accidentally dropped his phone in the cargo hold of the plane that was destined for Dallas. Duncan contacted his supervisor at Southwest and requested them to look for his phone when the plane landed in Dallas. The phone was located by two baggage handlers in Dallas. As they accessed the phone to locate a telephone number, they observed what they believed to be pictures of child pornography. A Dallas detective was notified, who identified multiple images of child pornography on Duncan’s cell phone, including images of toddlers and one image of a naked child in bondage.
The investigation was referred to a Kansas City, Mo., police detective, who discovered additional images of child pornography on the SD memory card inside the cell phone. Duncan’s collection included multiple images of sadistic and violent sexual abuse of prepubescent children, including babies.
Duncan eventually admitted to searching for and saving images of child pornography to his cell phone from different sites on the Internet, and said he had been doing so for a couple of years.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Jury Convicts Modesto Man for Production of Child Pornography and Attempted Sex Trafficking of A MinorRead the Press Release
FRESNO, Calif. — After a five–day trial, a federal jury found Ricky Davis, 36, of Modesto, guilty late Wednesday afternoon of production of child pornography and attempted sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Anthony W. Ishii.
According to evidence presented at trial, in September 2011 Davis invited a 13-year-old minor to his home for the ostensible purpose of giving her a tattoo. After her arrival, Davis instead took sexually explicit photographs of her and posted them online within an advertisement for prostitution. Davis also provided the minor’s contact information to someone responding to this advertisement. An analysis of digital evidence revealed the photographs to have been on Davis’s cellphone and computer, and metadata from the pictures established that they were taken from a cellphone matching the make and model of defendant’s phone. After the presentation of evidence, the jury deliberated for less than three hours before reaching its verdict.
This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento Police Department, and the California Highway Patrol, all members of the FBI’s Sacramento-based Child Exploitation Task Force, as well as the South San Francisco Police Department and California Department of Corrections and Rehabilitation. Assistant United States Attorneys Brian W. Enos and Alyson A. Berg are prosecuting the case.
Davis has been in custody since his arrest on January 26, 2012, and is scheduled to be sentenced by Judge Ishii on June 22, 2015. Davis faces a maximum statutory penalty of 30 years in prison for the production of child pornography count and a maximum statutory penalty of life in prison for the attempted sex trafficking count, as well as a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the US Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to prosecute those who sexually exploit children and to identify victims. For more information about PSC, visit www.usdoj.gov/psc.
Jury Convicts Former High-Ranking BLM OfficialRead the Press Release
GREAT FALLS – The former State Director of the Bureau of Land Management’s Eastern States Region, which is responsible for the stewardship of the public lands and resources under the jurisdiction of the BLM in 31 States east of and bordering the Mississippi River, was convicted of fraud and theft by a federal jury in Great Falls Wednesday night.
John Grimson Lyon, 61, of Clifton, Virginia, faces a possible 35 years imprisonment, $750,000 in fines, and $112,000 in forfeitures. Judge Brian Morris of Great Falls set sentencing for June 25, 2015.
As a State Director, Lyon was part of the Senior Executive Service, whose members serve in the key positions just below the top Presidential appointees. Lyon was convicted of approving time sheet information for one of his Deputy State Directors, Larry Ray Denny, 67, of Box Elder, even though Denny had left his position in Virginia in July 2012 to return to Montana and take a job with the Chippewa Cree Tribe on the Rocky Boy’s Indian Reservation. Federal prosecutors alleged that Lyon knew or should have known that his subordinate had abandoned his position and was performing no work on behalf of the federal government when he told BLM time keepers to continue to enter Denny’s hours as if he were earning a federal paycheck.
Lyon continued to present and certify as true work hours, sick leave hours, and annual leave hours to his staff, on Denny’s behalf, until Denny ultimately resigned in March of 2013. After leaving Virginia, and as a result of Lyon’s actions, Denny received an additional $112,000 in federal wages and benefits, all while working as Energy Projects Manager for the tribe. The scheme was discovered in February 2013 when a BLM employee in Montana sent an inquiry to that agency’s headquarters asking for clarification as to whether Denny was still a BLM employee. Denny had been working on oil and gas issues for the Tribe and the agency was unsure whether he was interacting with federal agencies as a BLM employee or as a representative of the Chippewa Cree Tribe.
Eastern States Office employees testified that Lyon rebuffed any inquiry into Denny’s status, telling them that Denny’s absence was related to a private medical issue and would not be discussed. An internal investigation revealed that Denny had over 3,000 unopened emails in his government email inbox. Employees testified that once Denny left Virginia there was “radio silence” and he could not be reached. One employee testified that she called Denny twice shortly after his departure; one the second call, Denny hung up on her once he determined who was calling. Lyon claimed Denny had been giving him valuable consultation on oil and gas matters which justified his work hours. An investigator with the Department of Interior’s Office of Inspector General testified that she reviewed Lyon’s phone records and found less than three hours of conversation in the eight-month period between July 2012 and March 2013. Emails and phone records revealed that Lyon and Denny regularly used non-government email and phones to communicate, thereby creating no data trail in government servers or phone records.
In November 2012, three months after Denny left and ceased working for BLM, Lyon rated Denny’s performance “exceptional” and approved a $3,200 cash bonus.
Denny plead guilty to all counts and the forfeiture three days before Lyon’s trial.
The guilty verdict is the latest in a series of prosecutions and convictions relating to public corruption, fraud, and theft in federal grants, contracts and programs brought by the investigators and prosecutors of the U.S. Attorney’s Guardians Project, an anti-corruption strike force created in 2011. The Denny-Lyon case was investigated by an agent of the Department of Interior’s Office of Inspector General.
United States Attorney Michael Cotter said that “We prosecute people who steal and cheat the taxpayers every day. Federal officials, regardless of their power or position, will be held to the same standard. The jury’s verdict sends a message. ‘It’s not your money. You are trusted to protect it. Do your duty or we will do ours.’”
Indictment Alleges Four Men Committed Hobbs Act RobberyRead the Press Release
PHILADELPHIA – Jibri Cunningham, 27, of Sharon Hill, PA, Tajeldin Cunningham, 28, Samar Taylor, 26, and Lavell Carter, 22, all of Philadelphia, were charged today by indictment with Hobbs Act Robbery and a gun offense, announced United States Attorney Zane David Memeger. According to the indictment, on December 27, 2013, the defendants robbed the owner of H&Y Royal Jewelers, located at 2437 South 23rd Street, in Philadelphia. The indictment alleges that the defendants stole money from the owner and his family using guns.
If convicted of both charges, each defendant faces a mandatory term of 84 months in prison in addition to the following possible advisory sentencing guideline ranges: Jibri Cunningham, 63 to 84 months in prison; Tajeldin Cunningham, 30 to 51 months in prison; Samuel Taylor, 46 to 78 months in prison; and Lavell Carter, 37 to 63 months in prison; plus possible fines, supervised release, and a special assessment of $200.
The case was investigated by the FBI, the United States Marshal Service, Lower Gwynedd Township Police, Montgomery County Police Department, and White Marsh Police Department and is being prosecuted by Assistant United States Attorney Jennifer C. Barry.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Indianapolis heroin trafficking operation dismantledRead the Press Release
Arizona to Indianapolis drug connection disrupted with arrests and confiscation of heroin, cocaine and over $1.8 million in cash
PRESS RELEASE
Indianapolis--United States Attorney Josh J. Minkler, Marion County Prosecutor Terry Curry and Indianapolis Metropolitan Police Department Chief Rick Hite, announced today four men have been charged federally for their role a drug trafficking operation that stretched from Tempe, Arizona to Indianapolis. Federal agents and IMPD detectives served search warrants at three west-side locations yesterday morning and confiscated large quantities of heroin, cocaine and cash.
Those arrested include:
- Geraldo Colon, 46, Indianapolis
- Darrell Fuqua, 39, Indianapolis
- Agustin Osuna-Toquillas, 26
- Marco AntonioBueno-Acosta, 24
All were charged with Conspiracy to distribute heroin and cocaine.
“Drug dealing has proven fatal too many times recently in Indianapolis,” said Minkler. “Our top commitment remains doing everything possible to keep our neighborhoods safe and we will use all laws at our disposal to make that happen. Dismantling armed drug trafficking organizations is a critical component to our priority of reducing violent crime in Indianapolis.”
“The collaborative efforts in this case by our investigators, law enforcement and federal agency partners, showcase the overall commitment of improving the quality of life in our city,” said Chief Rick Hite. “By disrupting and dismantling major organizations that introduce and distribute the illegal drugs found in our streets, we can continue our focus on eliminating one of the major root causes of violent crime in our community.”
Law enforcement officials have been pursuing this investigation since late 2013. In January 2014, after an investigation by the Marion County Prosecutor’s Office and IMPD, 13 individuals were arrested after officers seized approximately eight kilograms of cocaine, twelve firearms (including two assault rifles and two stolen handguns) and $200,000.00 in the Bulter-Tarkington area. As a result of their investigation, Colon was identified as a major target.
In May 2014, Drug Enforcement Administration agents in Phoenix, AZ., provided information that large amounts of narcotics were being shipped to Indianapolis. Colon again was a primary target as one of the main distributors of narcotics in the Indianapolis area. As a result of the information from DEA, several arrests were made involving large quantities of heroin and cocaine. On May 15, 2014, one kilogram of heroin, two firearms and over $1.8 million in currency was confiscated from a Greenwood, Indiana residence with connections back to Colon. On May 29, 2014, IMPD detectives obtained information involving the same group that led to the seizure of approximately forty pounds of methamphetamine and five firearms – two of which were stolen.
On January 20, 2015, law enforcement arrested Daniel Stewart, an associate of Colon and confiscated five handguns (two of which were stolen) approximately two kilograms of heroin, two kilograms of cocaine and two pounds of methamphetamine along with $487,542.00 in U.S. currency. Law enforcement continued their surveillance of Colon and on March 24, 2015, he was observed loading a large box into the rear of a vehicle at his residence in the 3500 block of N. Moller Road. The vehicle drove away but was stopped a few minutes later and was found to contain 10 kilograms of cocaine and four kilograms of heroin.
Search warrants were served at Colon’s residence and two other locations known to be associated with Colon on March 24, 2015. There, officers found four kilograms of cocaine, three kilograms of heroin and well over $1.8 million in cash.
In total, 20 federal and 45 state defendants have been charged, over ten kilograms of heroin, 25 kilograms of cocaine, 42 pounds of methamphetamine, 25 guns and $ 4.5 million in cash has been confiscated.
This investigation was conducted through the efforts of the Marion County Prosecutor’s Office, IMPD, Homeland Security Investigations, Internal Revenue Service, Drug Enforcement Administration and the Indiana State Police.
According to Assistant U.S. Attorney Michelle Brady who is prosecuting this case for the government, all defendants face from 10 years to life if convicted.
A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Idaho Falls Woman Pleads Guilty to Stealing Her Deceased Mother’s Social Security BenefitsRead the Press Release
POCATELLO - Wendy K. Banks, 55, of, Idaho Falls, Idaho, pleaded guilty today to theft of government funds, U.S. Attorney Wendy J. Olson announced. She was indicted by a grand jury on November 20, 2014.
According to the plea agreement, Banks admitted that between June 2009 and January 2014, she stole $29,600.20 of her deceased mother’s monthly social security benefits. After her mother’s death, Banks maintained the joint bank account she had shared with her mother. Banks forged her mother’s signature or wrote “for deposit” on the social security checks and deposited them in the joint account, eventually changing the checks to direct deposit in the joint account.
The charge of theft of government funds is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for June 23, 2015 in Pocatello before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the Social Security Administration Office of Inspector General. The case was prosecuted by a Special Assistant U.S. Attorney as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office to prosecute social security fraud.
Hobbs Man Pleads Guilty to Federal Methamphetamine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Sabre R. Carney, 24, of Hobbs, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to trafficking methamphetamine in Lea County, N.M.
Carney was arrested on Jan. 6, 2015, on a criminal complaint charging him with possession of methamphetamine and cocaine with intent to distribute. According to the complaint, officers of the Probation and Parole Division of the New Mexico Corrections Department found approximately 7.8 grams of cocaine and 3.1 grams of marijuana in Carney’s pockets and a handgun, 20.9 grams of methamphetamine and 22.7 grams of cocaine in a vehicle parked in the driveway of Carney’s residence when they conducted a home visit on Nov. 19, 2014. The Probation and Parole officers then contacted the Lea County Drug Task Force (LCDTF) who obtained a search warrant for Carney’s residence where they found approximately 87.5 gram of methamphetamine, electronic scales and $981.00 in cash.
During today’s proceedings, Carney pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering his guilty plea, Carney admitted that on Nov. 19, 2014, a probation officer searched the vehicle and found methamphetamine and a handgun. Carney further admitted that LCDTF officers found methamphetamine, which he intended to distribute to others, when they searched his residence later that same day.
At sentencing, Carney faces a mandatory minimum of five years and a maximum of 40 years in federal prison followed by at least four years of supervised release. He remains detained pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA and the Lea County Drug Task Force, with assistance from the Probation and Parole Division of the New Mexico Corrections Department. Assistant U.S. Attorney Terri J. Abernathy of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
The Lea County Drug Task Force is comprised of officers from the Lea County Sheriff’s Office, Hobbs Police Department, Lovington Police Department, Eunice Police Department the Tatum Police Department and the Jal Police Department, and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Guatemalan Man Sentenced on Immigration ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Ignacio Lopez-Perez, 38, a native and citizen of Guatemala, pleaded guilty before Senior U.S. District Judge William M. Skretny to being found in the United States after being deported on numerous occasions. The defendant was sentenced to time served by Judge Skretny.Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that on December 4, 2014, the defendant was found at the Seneca Allegany Hotel and Casino in Salamanca, NY after having been previously deported from the United States on five occasions.
This case was the culmination of an investigation on the part of agents of the U.S. Border Patrol, under the direction of Steven J. Oldman, Patrol Agent in Charge, and the Cattaraugus County Sheriff's Office, under the direction of Sheriff Timothy Whitcomb.
Gretna Man Sentenced to 15 Years in Prison for Sexual Exploitation of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KEITH JOSEPH MCGEE, age 31, of Gretna, was sentenced today for various charges of sexual exploitation of children. In June 2014, a federal jury found MCGEE guilty of 3 counts, specifically: attempting to coerce a minor to produce images of sexually explicit conduct; receiving sexually explicit images of a 14-year-old boy; and receiving sexually explicit images from a 15-year old boy.
U.S. District Judge Jay C. Zainey sentenced MCGEE to 180 months imprisonment, to be followed by 5 years of supervised release.
According to evidence introduced in trial, MCGEE, formerly a foreign language teacher at several Catholic high schools, posted numerous personal advertisements on an online classified advertisement website designed seeking sexual interactions with “young teens” and “Catholic high school boys.” Additionally, between January 29, 2013, and February 11, 2013, MCGEE corresponded with two actual minors and an undercover FBI agent posing as a minor by e-mail, text message, and on smartphone social media applications. During those correspondences, MCGEE confirmed that each person was a minor and then repeatedly encouraged and enticed them to provide him with sexually explicit pictures. In addition to seeking sexually explicit pictures, MCGEE attempted to arrange sexual liaisons with the boys, including driving to the home of the 15-year-old boy at around 2:00 a.m. Additionally, evidence introduced at trial indicated that MCGEE engaged in sexually explicit conversations and exchanged sexually explicit pictures with approximately six other minors who have not been identified.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Jordan Ginsberg and Patrice Harris Sullivan were in charge of the prosecution.
Fresno and Bakersfield Men Indicted for Laser Strikes on Law Enforcement HelicoptersRead the Press Release
FRESNO, Calif. — A federal grand jury returned two separate indictments Thursday, charging one defendant with a laser strike of a police helicopter in Fresno, and one with a laser strike of a sheriff’s helicopter in Bakersfield, United States Attorney Benjamin B. Wagner announced.
Laser Strikes of Fresno PD Helicopter
Johnny Alexander Quenga, 28, of Fresno, was charged with interfering with the safe operation of Air 1, a Fresno Police Department helicopter, and aiming the beam of a green laser at the aircraft. According to court documents, on March 5, 2015, Air 1 was repeatedly struck by a powerful green laser attached to an airsoft rifle that was seized from Quenga’s residence. As a result, it is alleged the airmen experienced various vision difficulties. Quenga is scheduled for arraignment on the indictment today at 1:00 p.m.Laser Strikes of Kern County Sheriff’s Helicopter
According to court documents, on September 12, 2014, Barry Lee Bowser Jr., 51, of Bakersfield, aimed the beam of a green laser at Air-1, a Kern County Sheriff’s helicopter while it was providing support to ground units responding to a man armed with a gun. The mission was diverted when the cockpit of Air-1 was illuminated by a bright green laser. It is alleged that the illumination caused the pilot to experience vision difficulties. Bowser fled from Bakersfield following the incident last September and was recently arrested in San Luis Obispo. Bowser is scheduled for arraignment on the indictment on March 30, 2015. He was ordered detained as a flight risk.The case against Quenga is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. The case against Bowser is the product of an investigation by the FBI, Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting both cases.
Quenga faces up to 20 years in prison and a fine of up to $250,000 if convicted of interfering with the safe operation of an aircraft, and five years in prison and a fine of up to $250,000 if convicted of aiming the beam of a laser pointer at an aircraft. Bowser faces a prison term of five years and a fine of up to $250,000. Any sentence imposed on either defendant, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; both defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2014, the Federal Aviation Administration (FAA) received 3,894 reports of incidents involving laser strikes on aircraft. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 150 reported incidents, with the majority in Bakersfield, Fresno, and Modesto. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.
Thousands of laser attacks go unreported every year. If you have information about a lasing incident, or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.
Fourth Ocean Shipping Executive Pleads Guilty to Price Fixing on Ocean Shipping Services for Cars and TrucksRead the Press Release
An executive of Japan-based Kawasaki Kisen Kaisha Ltd. (K-Line) pleaded guilty today and was sentenced to 18 months in a U.S. prison for his involvement in a conspiracy to fix prices, allocate customers and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed in U.S. District Court of the District of Maryland in Baltimore on Jan. 22, 2015, Toru Otoda, who was a general manager in K-Line’s car carrier division, conspired to allocate customers and routes, rig bids and fix prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. Otoda participated in the conspiracy from at least as early as November 2010 until at least September 2012.
Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and off of an ocean-going vessel. Examples of this cargo include new and used cars and trucks and construction and agricultural equipment.
“Today’s sentence reinforces our commitment to hold executives accountable for colluding to fix ocean freight prices,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “This investigation will continue as we seek to prosecute the executives who conspired and the companies that employed them.”
“Price fixing and bid rigging are crimes most people don’t see, but they have a direct impact on everyone’s wallet,” said Special Agent in Charge Steve Vogt of the FBI’s Baltimore Field Office. “Our goal in the FBI is to expose the back room deals and secret handshakes, and to stop the culture in some businesses that allows these crimes to take place.”
Pursuant to the plea agreement, which the court accepted today, Otoda was sentenced to serve an 18-month prison term and pay a $20,000 criminal fine for his participation in the conspiracy. In addition, Otoda has agreed to assist the department in its ongoing investigation into the ocean shipping industry.
Otoda was charged with a violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for an individual. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s sentence is the fourth against an individual in the division’s ocean shipping investigation, and the third against an individual from K-Line. Three corporations have agreed to plead guilty and to pay criminal fines totaling more than $136 million, including K-Line, which was sentenced to pay a criminal fine of $67.7 million.
Today’s plea agreement is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit. Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Baltimore Field Office at 410-265-8080.
Four Men Sentenced for Stealing Millions from Bank of New York MellonRead the Press Release
ATLANTA - Zachary Vaughn, Derek Spinks, Harry Cobb, and William Leese have been sentenced for their respective roles in a conspiracy to steal more than $4 million from the Bank of New York Mellon.
“In 2009, Defendant Vaughn brazenly stole more than $4 million and for years manipulated bank accounts to cover his tracks, all for the benefit of himself and his coconspirators who enjoyed the fruits of the theft,” said Acting U.S. Attorney John Horn. “Citizens trust financial institutions with their money every day and have the right to expect that bank employees handling their accounts have the utmost integrity. Those who enrich themselves by stealing someone else’s money will be caught and prosecuted.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of these four defendants brings to a close an extensive and expensive bank fraud scheme. With restitution amounts in excess of $4 million dollars, these individuals will have many years to contemplate their bad decisions.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: From 2005 to 2013, Zachary Vaughn was employed by the Bank of New York Mellon at its Atlanta, Georgia location. In his position, Vaughn had access to client funds that were held at the bank, including an account that held more than $4.3 million in reserve funds, which belonged to a customer of the bank. Vaughn and defendant Derek Spinks decided to steal the funds from the bank.
In December 2009, Vaughn wired $4.3 million from the Bank of New York to a bank account in the name of a business owned by Derek Spinks. Soon thereafter, Spinks and defendant William Leese decided to invest the money in C&L Logistics and Transportation, LLC, a business owned by Leese and defendant Harry Cobb. In January 2010, the defendants arranged to move the $4 million to a C&L bank account that was controlled by Leese and Cobb.
The defendants then used the stolen funds for C&L business expenses as well as for personal expenses, including purchasing personal vehicles, a suite at Atlanta Hawks basketball games, gold, and funding personal travel expenses. Vaughn, who remained employed at the Bank of New York until 2013, continually moved client funds from one account to another so that the original theft went undetected until 2013, when he left his employment with the Bank.
The defendants were sentenced by United States District Judge Orinda B. Evans as follows:- Vaughn, 35, of Atlanta, Georgia, was sentenced on February 19, 2015, to five years, three months in prison to be followed by five years of supervised release. Vaughn was convicted after pleading guilty on August 18, 2014.
- Spinks, 35, of Austell, Georgia, was sentenced March 26, 2015, to two years, nine months in prison to be followed by five years of supervised release. Spinks was convicted after pleading guilty on September 4, 2014.
- Cobb, 48, of Decatur, Georgia, was sentenced March 26, 2015, to one year, eight months in prison to be followed by five years of supervised release. Cobb was convicted after pleading guilty on September 15, 2014.
- Leese, 33, of Duluth, Georgia, was sentenced on February 19, 2015, to three years, one month in prison to be followed by five years of supervised release. Leese was convicted after pleading guilty on December 5, 2014.
Additionally, all of the defendants were ordered to pay restitution to the Bank of New York in the amount of $4,387,598.57.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jamie L. Mickelson prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Fort Smith Man Sentenced to over 17 Years in Prison for Role in Drug Trafficking OrganizationRead the Press Release
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that William Joseph Alexander, aka “Weenie”, age 33, of Fort Smith, was sentenced today to 210 months in federal prison followed by five years of supervised release on one count of Possession of Methamphetamine with Intent to Distribute. 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, “Kids in Fort Smith and across our district deserve to grow up in an environment free from drug trafficking and the crime and violence it brings with it. The sentence announced today reinforces our commitment to work with federal, state, and local law enforcement agencies to prosecute and dismantle drug trafficking organizations across the Western District of Arkansas.”
“We appreciate the opportunity to work with our partners in law enforcement, in this case specifically the U.S. Attorney’s Office of the Western District of Arkansas and the Drug Enforcement Administration,” stated Major Mark Hallum with the Fort Smith Police Department, “We are committed to strengthening our regional cooperation to bring to justice those who choose to engage in narcotics trafficking.”
According to court records, in November of 2013, agents with the Drug Enforcement Administration (DEA) learned that large quantities of methamphetamine were being distributed out of the Fort Smith, Arkansas area by a drug trafficking organization that involved William Alexander. During the investigation, agents learned that Alexander was obtaining large quantities of methamphetamine from sources of supply outside of the Western District of Arkansas. On July 13, 2014, agents with the DEA followed Alexander and another co-conspirator, Rosa Sharon, from Oklahoma to Fort Smith. At approximately 2:00 a.m., an officer with the Fort Smith Police Department conducted a traffic stop on the vehicle being driven by Rosa Sharon in which Alexander was a passenger. During a subsequent search of the vehicle, the officer located approximately seven pounds of methamphetamine. Alexander and Sharon were then arrested and taken to the Fort Smith Police Department for interviews. After being advised of his Miranda rights, Alexander admitted to possessing the methamphetamine located in his vehicle with the intent to distribute it to others. Alexander pleaded guilty to the charge of Possession of Methamphetamine with Intent to Distribute on November 24, 2014. Alexander’s co-conspirator, Rosa Sharon, age 50 of Fort Smith, pleaded guilty to one count of Conspiracy to Distribute Methamphetamine on November 24, 2014, and will be sentenced at a later date. Randal Jernigan, age 31 of Fort Smith, a co-defendant in the case, was arrested on July 15, 2014, and pleaded guilty to one count of Distribution of Methamphetamine on September 30, 2014. Jernigan was sentenced to 84 months in prison followed by three years of supervised release.
This case was investigated by the Drug Enforcement Administration (DEA) and the Fort Smith Police Department. Assistant United States Attorney Clay Fowlkes 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@ www.pacer.gov
Former United Commercial Bank Chief Credit Officer Convicted of Securities and Other Corporate Fraud After TrialRead the Press Release
The Fraud Caused the Ninth Largest Bank Failure with Estimated Losses in Excess Of $677 Million
A jury convicted Ebrahim Shabudin yesterday of seven felony counts of conspiracy, securities fraud and other corporate fraud offenses stemming from the failure of United Commercial Bank (UCB), announced U.S. Attorney Melinda Haag of the Northern District of California, Acting Inspector General Fred W. Gibson Jr. of the Federal Deposit Insurance Corporation’s Office of the Inspector General, Special Inspector General Christy Romero of the Troubled Asset Relief Program, Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau’s Office of the Inspector General and Special Agent in Charge David J. Johnson of the FBI’s San Francisco Division.
Shabudin, 66, of Moraga, California, was the Chief Operating Officer and Chief Credit Officer at UCB in 2008 and 2009. Shabudin was the second most senior officer in executive management at UCB after former Chief Executive Officer Thomas Shiu-Kit (Tommy) Wu.
On Nov. 6, 2009, UCB was taken over by the Federal Deposit Insurance Corporation (FDIC). With over $10.9 billion in assets, UCB’s failure was the ninth largest failure since 2007 of a bank insured by the FDIC’s Deposit Insurance Fund, according to the FDIC. In 2013, FDIC estimated that total losses for UCB would exceed $1.1 billion. Through 2014, however, with the recovery of the U.S. economy, FDIC now estimates the loss to the Deposit Insurance Fund to be approximately $677 million. On Nov. 14, 2008, the Troubled Asset Relief Program (TARP) provided approximately $298 million in federal funds to UCB during the financial crisis.
Late yesterday, a jury found Shabudin guilty of conspiring with others within the bank to falsify key bank records as part of a scheme to conceal millions of dollars in losses and falsely inflate the bank’s financial statements. Among the records falsified were those filed with the U.S. Securities and Exchange Commission (SEC) and FDIC related to the third and fourth quarters of 2008 describing UCB’s so-called Allowance for Loan Losses. Also falsified were documents relating to UCB’s quarterly and year-end earnings per share as announced by the bank to the investing public. The guilty verdict followed a six-week jury trial before U.S. District Judge Jeffrey S. White of the Northern District of California.
“UCB is one of the largest criminal prosecutions brought by the U.S. Department of Justice of wrongdoing by bank officers arising out of the 2008 financial crisis,” said U.S. Attorney Haag. “With actual losses exceeding a half a billion dollars, the prosecution of Shabudin and other senior officers at UCB is one of the most significant financial fraud cases in the history of the Northern District of California. I am proud of the collaboration with our law enforcement partners at FDIC-OIG, SIGTARP, Federal Reserve Board and CFPB-OIG and the FBI, without whom the successful prosecution of this complex and challenging case would not have been possible.”
“The FDIC Office of Inspector General (OIG) is pleased to have joined the U.S. Attorney’s Office and our law enforcement colleagues in investigating the fraud that led to the conviction of Mr. Shabudin on all seven counts,” said Acting Inspector General Gibson. “It is particularly troubling to the FDIC-OIG when bank insiders violate the public trust and engage in activities that cause losses to the Deposit Insurance Fund—in this case, a $677 million loss to the DIF. We are committed in our efforts to maintain integrity in our nation’s banks and to ensure safe and sound operations in our financial institutions throughout the country. I commend the dedication and persistent efforts of all those involved in bringing this case to justice.”
“The federal jury’s decision to convict Ebrahim Shabudin marks the third criminal conviction of a United Commercial Bank officer,” said Special Inspector General Romero. “After receiving TARP in November 2008, UCB failed about a year later, leaving $298 million in losses on taxpayers’ TARP investment in the bank. SIGTARP is on watch, protecting American taxpayers, and we thank Melinda Haag and her exceptional team of prosecutors for standing united with SIGTARP in the fight against bailout-related crime.”
“Bank executives engaged in fraud to deceive regulators and the public must be brought to justice for their actions,” said Inspector General Bialek. “I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to this conviction.”
“The FBI, Special Inspectors General for Troubled Asset Relief Program, Federal Deposit Insurance Corporation, and Federal Reserve Board recognize the importance of prosecuting those who defrauded the U.S. people after the 2008 financial crisis, and will continue to pursue and prosecute like-minded perpetrators,” said Special Agent in Charge Johnson.
The jury convicted Shabudin yesterday of one count of Conspiracy to Commit Securities Fraud, one count of Securities Fraud, one count of Falsifying Corporate Books and Records, one count of False Statements to Accountants, one count of Circumventing Internal Accounting Controls, one count of Conspiracy to Commit False Bank Entries, Reports, and Transactions and one count of False Bank Entries, Reports and Transactions.
In all, Shabudin faces a total overall maximum term of 145 years of imprisonment, up to $16,750,700 in fines and assessments and up to 27 years of supervised release. Shabudin’s actual term of imprisonment, fines and assessments and term of supervised release will be imposed by the court at a sentencing hearing currently set for June 30, 2015, after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence.
On Dec. 9, 2014, UCB’s Chief Financial Officer, Craig S. On, pleaded guilty to one count of Conspiracy to Make a Materially False and Misleading Statement to an Accountant.
On Oct. 7, 2014, the bank’s Senior Vice President, Thomas Yu, pleaded guilty to charges of conspiracy to commit false bank entries, reports and transactions related to his preparation of false and misleading reports.
The prosecution is the result of a five year investigation by the FDIC-OIG, SIGTARP, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau Office of Inspector General and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Adam A. Reeves and Robert David Rees of the Northern District of California, with the assistance of Denise Oki, Phillip Villanueva, Bridget Kilkenny and Trina Khadoo.
Former United Commercial Bank Chief Credit Officer Convicted of Securities and Other Corporate Fraud After TrialRead the Press Release
OAKLAND – A jury convicted Ebrahim Shabudin yesterday of seven felony counts of conspiracy, securities fraud, and other corporate fraud offenses stemming from the failure of United Commercial Bank, announced U.S. Attorney Melinda Haag; Federal Deposit Insurance Corporation, Office of the Inspector General, Acting Inspector General Fred W. Gibson, Jr.; Special Inspector General for the Troubled Asset Relief Program Christy Romero; Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Office of the Inspector General, Inspector General Mark Bialek; and FBI Special Agent in Charge David J. Johnson.
Shabudin, 66, of Moraga, Calif., was the Chief Operating Officer and Chief Credit Officer at United Commercial Bank (“UCB”) in 2008 and 2009. Shabudin was the second most senior officer in executive management at UCB after former Chief Executive Officer Thomas Shiu-Kit (“Tommy”) Wu.
On November 6, 2009, UCB was taken over by the Federal Deposit Insurance Corporation (“FDIC”). With over $10.9 billion in assets, UCB’s failure was the ninth largest failure since 2007 of a bank insured by the FDIC’s Deposit Insurance Fund, according to the FDIC. In 2013, FDIC estimated that total losses for UCB would exceed $1.1 billion. Through 2014, however, with the recovery of the United States economy, FDIC now estimates the loss to the Deposit Insurance Fund to be approximately $677 million. On November 14, 2008, the Troubled Asset Relief Program (“TARP”) provided approximately $298 million in federal funds to UCB during the financial crisis.
Late yesterday, a jury found Shabudin guilty of conspiring with others within the bank to falsify key bank records as part of a scheme to conceal millions of dollars in losses and falsely inflate the bank’s financial statements. Among the records falsified were those filed with the United States Securities and Exchange Commission (“SEC”) and FDIC related to the third and fourth quarters of 2008 describing UCB’s so-called Allowance for Loan Losses. Also falsified were documents relating to UCB’s quarterly and year-end earnings per share as announced by the bank to the investing public. The guilty verdict followed a six-week jury trial before the Honorable Jeffrey S. White, U.S. District Judge.
“UCB is one of the largest criminal prosecutions brought by the United States Department of Justice of wrongdoing by bank officers arising out of the 2008 financial crisis,” U.S. Attorney Melinda Haag stated. “With actual losses exceeding a half a billion dollars, the prosecution of Shabudin and other senior officers at UCB is one of the most significant financial fraud cases in the history of the Northern District of California. I am proud of the collaboration with our law enforcement partners at FDIC-OIG, SIGTARP, Federal Reserve Board, and CFPB-OIG and the FBI, without whom the successful prosecution of this complex and challenging case would not have been possible.”
Fred W. Gibson, Jr., FDIC Acting Inspector General, stated that “the FDIC Office of Inspector General (OIG) is pleased to have joined the U.S. Attorney’s Office and our law enforcement colleagues in investigating the fraud that led to the conviction of Mr. Shabudin on all seven counts. It is particularly troubling to the FDIC-OIG when bank insiders violate the public trust and engage in activities that cause losses to the Deposit Insurance Fund—in this case, a $677 million loss to the DIF. We are committed in our efforts to maintain integrity in our nation’s banks and to ensure safe and sound operations in our financial institutions throughout the country. I commend the dedication and persistent efforts of all those involved in bringing this case to justice.”
“The federal jury’s decision to convict Ebrahim Shabudin marks the third criminal conviction of a United Commercial Bank officer,” said Christy Romero, Special Inspector General for TARP. “After receiving TARP in November 2008, UCB failed about a year later, leaving $298 million in losses on taxpayers’ TARP investment in the bank. SIGTARP is on watch, protecting American taxpayers, and we thank Melinda Haag and her exceptional team of prosecutors for standing united with SIGTARP in the fight against bailout-related crime.”
“Bank executives engaged in fraud to deceive regulators and the public must be brought to justice for their actions,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to this conviction.”
FBI Special Agent in Charge David J. Johnson added, “The FBI, Special Inspectors General for Troubled Asset Relief Program, Federal Deposit Insurance Corporation, and Federal Reserve Board recognize the importance of prosecuting those who defrauded the U.S. people after the 2008 financial crisis, and will continue to pursue and prosecute like-minded perpetrators.”
The jury convicted Shabudin of the following seven crimes yesterday by their verdict:
- Count One: Conspiracy to Commit Securities Fraud, in violation of 18 U.S.C. § 1349, with a maximum penalty of 25 years of imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.
- Count Two: Securities Fraud, in violation of 18 U.S.C. § 1348, with a maximum penalty of 25 years of imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.
- Count Three: Falsifying Corporate Books and Records, in violation of 15 U.S.C. §§ 78m(b)(2)(A), 78m(b)(5), and 78ff, and 17 C.F.R. § 240.13b2-1, with a maximum penalty of 20 years of imprisonment, a $5,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
- Count Four: False Statements to Accountants, in violation of 15 U.S.C. § 78ff, and 17 C.F.R. § 13b2-2, with a maximum penalty of 20 years of imprisonment, a $5,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
- Count Five: Circumventing Internal Accounting Controls, in violation of 15 U.S.C. §§ 78m(b)(2)(B) and 78ff, with a maximum penalty of 20 years or imprisonment, a $5,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
- Count Six: Conspiracy to Commit False Bank Entries, Reports, and Transactions, in violation of 18 U.S.C. § 371, with a maximum penalty of 5 years of imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
- Court Seven: False Bank Entries, Reports, and Transactions, in violation of 18 U.S.C. § 1005, with a maximum penalty of 30 years of imprisonment, a $1,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
In all, Shabudin faces a total overall maximum term of 145 years of imprisonment, up to $16,750,700 in fines and assessments, and up to 27 years of supervised release. Shabudin’s actual term of imprisonment, fines and assessments, and term of supervised release will be imposed by the court at a sentencing hearing currently set for June 30, 2015, after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
On December 9, 2014, UCB’s Chief Financial Officer, Craig S. On, pleaded guilty to one count of Conspiracy to Make a Materially False and Misleading Statement to an Accountant.
On October 7, 2014, the bank’s Senior Vice President, Thomas Yu, pleaded guilty to charges of conspiracy to commit false bank entries, reports, and transactions related to his preparation of false and misleading reports.
Assistant U.S. Attorneys Adam A. Reeves and Robert David Rees are prosecuting the case with the assistance of Denise Oki, Phillip Villanueva, Bridget Kilkenny and Trina Khadoo. The prosecution is the result of a five year investigation by the FDIC-OIG, SIGTARP, the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau Office of Inspector General, and the FBI.
Former Office Manager from Jones Sentenced to 94 Months in Prison in Connection with over $1 Million Embezzlement and Tax FraudRead the Press Release
Oklahoma City, Oklahoma –JULIE ANN SMITH (a/k/a “Julie A. Judkins” and “Julie A. Judkins Smith”), of Jones, Oklahoma, was sentenced today to serve 94 months in federal prison and ordered to pay $1,237,939.22 in restitution for embezzling from her former employer and for tax fraud, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
On October 30, 2014, a federal jury found Smith guilty of 36 counts of bank fraud, mail fraud, aggravated identity theft, forged securities, and tax fraud. According to evidence presented at trial, Smith worked from 2000 until late June 2012 at Power Equipment & Engineering, Inc. (“PE&E”), in Oklahoma City. At PE&E, Smith was the accounts-payable clerk and office manager, where she prepared checks and paid invoices for the company. While employed at PE&E from June of 2002 through June of 2012, Smith forged approximately 195 PE&E checks by using the company owner’s signature stamp without PE&E’s permission or knowledge. The forged checks totaled more than $1 million. The evidence showed that Smith disguised the forged checks through false entries on PE&E’s accounting system, wrote many of the forged checks to a fake company under her control, and directed other forged checks to credit card companies, financial institutions, and vendors for her personal benefit. Finally, the evidence showed that Smith filed materially false federal income tax returns for years 2008 through 2012.
Today, United States District Judge Stephen P. Friot sentenced Smith to 94 months in federal prison, and ordered her to pay $1,237,939.22 in restitution. Judge Friot ordered Smith to pay $1,036,816.22 in restitution to PE&E for the embezzlement, and $201,123.00 in restitution to the Internal Revenue Service. The 94-month sentence includes 70 months’ imprisonment for the bank fraud, mail fraud, and forged security counts, followed by 24 additional months in prison for one count of aggravated identify theft. Judge Friot sentenced Smith to 36 months’ imprisonment for the tax fraud, to be served at the same time as the 70-month term of imprisonment. After her incarceration, Smith will be on supervised release for five years. At the end of today’s sentencing, Smith was taken into custody to begin service of her federal sentence.
This sentence is the result of an investigation conducted by the Internal Revenue Service - Criminal Investigations, United States Secret Service, Federal Bureau of Investigation, and Oklahoma City Police Department. The case was prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Jessica L. Perry.
Reference is made to court filings for further information.
Former Merrimack College Financial Aid Director Sentenced for Loan FraudRead the Press Release
BOSTON – The former Director of Financial Aid for Merrimack College was sentenced on Tuesday, March 24, 2015, for fraudulently obtaining Perkins Loan funding for students over a nine-year period.
Christine Mordach, 63, of Methuen, was sentenced by U.S. District Court Chief Judge Patti B. Saris to one year and one day in prison. A restitution hearing was scheduled for June 22, 2015. In November 2014, Mordach pleaded guilty to mail and wire fraud.
As the Director of Financial Aid for Merrimack College, Mordach was responsible for administering the Perkins Loan program at Merrimack College. The Federal Perkins Loan Program provides low-interest loans to help needy students finance the costs of post-secondary education. The United States Department of Education provides Perkins Loan funding to each participating school, and the school determines which students have the greatest need and disburses the funds accordingly. Each school’s revolving Perkins Loan fund is replenished by ongoing activities, such as collections by the school on outstanding Perkins Loans the school makes. If awarded a Perkins Loan, a student must complete and sign a Perkins Loan promissory note in order to receive the loan funds.
Between at least 1998 and 2007, Mordach caused Perkins Loan funds to be fraudulently disbursed to Merrimack College students. Specifically, Mordach disbursed the Perkins Loan funds to students without a signed promissory note and without the students’ knowledge or approval. Through at least September 2011, Mordach took actions to conceal the fraudulent loans from the students, their parents, and from Merrimack College.
United States Attorney Carmen M. Ortiz; Brian Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Region I and II; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Kristina E. Barclay of Ortiz’s Public Corruption Unit.
Former Federal Credit Union Employee Sentenced for Bank Fraud and Filing False Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Kelly Yawn, age 32 , of Hahira, Georgia, was sentenced on March 25, 2015 by the Honorable Hugh Lawson, Senior United States District Judge, in Valdosta, to serve 41 months in prison for bank fraud and filing false tax returns. Ms. Yawn was also ordered to pay restitution totaling $628,539.34 to the fraud victims and $139,865 to the IRS as unpaid taxes on unreported income for tax years 2008 through 2011.
On January 6, 2015, Ms. Yawn entered a guilty plea to the charges in the District Court. In entering her plea, Ms. Yawn admitted that while employed by Georgia Power Valdosta Federal Credit Union (GPVFCU) between February 2008 and November 2011, she accessed the credit union’s computer system to prevent electronic transactions (ACH) and written share drafts from posting to her account. Using that scheme, Ms. Yawn was able to misdirect for her own benefit more than 900 share drafts and more than 1200 ACH transactions, totaling more than $499,000.00 which were paid from GPVFCU funds. Ms. Yawn took additional actions to cover up the transactions so that they would not be discovered by GPVFCU or outside auditors by posting fraudulent deposits to GPVFCU’s accounts.
Ms. Yawn also filed federal income tax returns for 2008 through 2011 that were false. Ms. Yawn failed to include the money she received from the scheme on her federal tax returns as income in those years.
“Ms. Yawn took advantage of the trust her employer had in her to illegally fund her family’s lifestyle over a four year period. She robbed the Credit Union just as much as if she had come in with mask and gun, and made off with more money” said United States Attorney Michael J. Moore. “Today’s prison sentence, including the sizable restitution for victim losses and unpaid taxes she now owes, ensures that Ms. Yawn will not walk away from the damage her crime has caused and sends a message to others that, in the end, theft does not pay.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: "Ms. Yawn will now have plenty of time to reflect on her poor choice to steal from her own bank. Bank fraud is not a victimless crime and the FBI will continue to provide significant investigative assets toward identifying, investigating, and presenting for prosecution those individuals who would engage in such criminal activities."
“Ms. Yawn used her position as an employee of Georgia Power Valdosta Credit Union to manipulate the financial system in order to steal income, conceal the theft and then failed to report the income on her tax return” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “This sentence is a vital element in maintaining public confidence in our legal and financial system.”
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service - Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service. Assistant United States Attorney Robert D. McCullers prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Department of Defense Contractor Pleads Guilty to Wire Fraud, Assault of Federal OfficerRead the Press Release
DAYTON – Metin Atilan, 55, formerly of Las Vegas, pleaded guilty in U.S. District Court to conspiracy to commit wire fraud, assault of a federal officer and failure to appear on pretrial release. Atilan, a former Department of Defense contractor, was extradited from Iraq to the United States in July. He was the first person extradited from Iraq to the United States pursuant to the U.S.-Iraq extradition treaty of 1936.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Office and Assistant Special Agent in Charge Jeffrey Arsenault of the Defense Criminal Investigation Service (DCIS) announced the plea entered into yesterday before U.S. District Judge Thomas Rose.
Atilan, a dual U.S. and Turkish citizen, was charged by indictment on June 10, 2008. According to court documents, Atilan is President and Chief Executive Officer of PMA Services, Ltd. of Las Vegas and Kayteks Ltd. of Adna, Turkey. In 2006 through 2008, Atilan offered bribes and kickbacks in order to secure contracts for businesses he owned in connection with services and construction associated with U.S. military operations in Iraq. Some of the Defense Department contracting officials who Atilan is accused of trying to bribe were stationed in Dayton at the time.
Atilan was first arrested in Las Vegas on May 23, 2008. Atilan was placed on electronic monitoring there pending his formal hearing before a federal judge in Dayton, Ohio. On June 15, 2008, Atilan violated the terms of his pretrial release by cutting off his electronic bracelet and fleeing the country. Atilan also forcibly resisted and assaulted a federal officer who was escorting him from Iraq to the United States on July 24, 2014.The government sought his extradition, and Atilan arrived in Dayton, Ohio on July 27, 2014.
Conspiracy to commit wire fraud is a crime punishable by up to 30 years in prison. The court may impose a sentence of up to 8 years in prison for assault of a federal officer and up to 10 years for failure to appear on pretrial release.
Atilan is scheduled for sentencing on July 1, 2015.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and DCIS as well as Assistant United States Attorney Dwight Keller, who is representing the United States in this case.
Former Corrections Officer Sentenced to 27 Months in Prison for Taking Cash to Smuggle Contraband into FacilityRead the Press Release
WASHINGTON - Darren Malry, 52, a former corrections officer who worked for the Corrections Corporation of America (CCA), has been sentenced to 27 months in prison after earlier pleading guilty to a bribery charge for accepting money to smuggle contraband into the District of Columbia’s Correctional Treatment Facility.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr.; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas N. Faust, Director of the District of Columbia Department of Corrections.
Malry, of Laurel, Md., pled guilty in October 2014 in the U.S. District Court for the District of Columbia. He was sentenced on March 25, 2015, by the Honorable Colleen Kollar-Kotelly. After his prison term, Malry will be placed on two years of supervised release.
According to the government’s evidence, Malry had worked for CCA as a corrections officer at the Correctional Treatment Facility. CCA, a private company, has a contract to provide services to the Correctional Treatment Facility.
On March 11, 2014, Malry met with an undercover FBI agent who gave him a cellphone, cigarettes, and rolling papers for Malry to deliver to an inmate housed at the Correctional Treatment Facility. Malry also accepted $750 in cash at that meeting, given in exchange for Malry smuggling the contraband into the facility and delivering it to the inmate.
Malry met again with the agent on April 21, 2014. At that meeting, the agent gave Malry cigarettes and several packages of a substance resembling marijuana. This time, Malry accepted $600 in cash, which was in exchange for Malry smuggling the contraband into facility for the same inmate. Malry subsequently was arrested.
In a related investigation, another former Corrections Company of America officer at the Correctional Treatment Facility, Lenard Fleming, 34, pled guilty in November 2014, to a bribery charge. He was sentenced last week to 27 months in prison.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Director Faust commended the work of those who jointly worked the case, including agents from the FBI’s Washington Field Office, investigators from the District of Columbia Department of Corrections Office of Investigative Services, and investigators from the Corrections Corporation of America. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; Assistant U.S. Attorneys Melinda Williams, Todd Gee, and former Assistant U.S. Attorney Justin Dillon, who assisted in the investigation, and Assistant U.S. Attorneys Catherine K. Connelly, Allessandra Stewart, Arvind Lal, and Tom Swanton, who assisted with forfeiture issues. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Richard DiZinno, who prosecuted the case.
Former Belgrade State Bank Branch Manager Pleads Guilty to Purposefully Evading Reporting RequirementsRead the Press Release
St. Louis, MO – SHEILA AUBUCHON pled guilty today to charges relating to her willful failure to file reports of more than $100,000 in cash transactions during her employment with Belgrade State Bank, in violation of federal bank reporting requirements.
Aubuchon, of Potosi, Missouri, pled guilty to two felony counts of purposefully causing Belgrade Bank to fail to file currency transaction reports, or CTRs, with the Internal Revenue Service. Under federal law, financial institutions such as Belgrade State Bank are required to file a CTR whenever they process a transaction involving more than $10,000 in U.S. currency. Aubuchon admitted that, on five separate occasions in 2009 and 2010, while serving as the Branch Manager of the Potosi Branch of Belgrade State Bank, she caused the bank to fail to file such reports and did so intentionally for the purpose of evading the reporting requirements. Aubuchon pled guilty to the charges before United States District Judge Rodney W. Sippel, in St. Louis. Sentencing has been set for June 26, 2015.
Each count to which Aubuchon pled guilty carries a maximum penalty of five years in prison. In determining any actual sentence imposed, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case is being investigated by the United States Secret Service and the Internal Revenue Service. Assistant United States Attorney Richard E. Finneran is handling the case for the U.S. Attorney’s Office.
Feds Combating Health Care Fraud on Multiple FrontsRead the Press Release
Civil, criminal and administrative sanctions combined with outreach to professionals netting positive results and millions in recoveries.
GRAND RAPIDS, MICHIGAN –United States Attorney for the Western District of Michigan Patrick Miles, Jr. announced this week that the multi-prong approach to combat health care fraud his office uses has achieved unprecedented results for the Western District. Miles said his office seeks to pursue criminal charges, civil penalties and administrative exclusions in health care fraud cases as well as educate health care providers and the public about detecting and avoiding health care fraud practices. “We made addressing financial frauds, such as a health care fraud, one of our top U.S. Attorney’s Office priorities,” U.S. Attorney Miles said. “We put additional resources into prosecuting health care fraud cases and warning practitioners of our emphasis on pursuing both health care fraud prosecutions and civil remedies. We hold corporations and individuals accountable for wrongdoing. Consequently, we are seeing very positive results.”
Specifically, U.S. Attorney Miles noted that over the past two years his U.S. Attorney’s Office has obtained 20 criminal convictions in cases involving health care fraud or health care practitioners, negotiated over $5,500,000 in civil health care fraud settlements, caused mandatory or voluntary federal health care program exclusions of doctors and other practitioners totaling over 50 years, and seen a $100,000,000 decrease in Medicare home health care expenditures in the Western District of Michigan largely due to federal investigations, prosecutions, and educational outreach efforts focused on home health care and home health care kickback payments.
U.S. Attorney Miles praised the collaborative efforts of the federal prosecutors in his office working along with law enforcement investigative partners such as the Drug Enforcement Agency (DEA), Federal Bureau of Investigation (FBI) and U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). In the Western District of Michigan veteran Federal prosecutor Ray Beckering is the U.S. Attorney’s Office Criminal Health Care Fraud Coordinator and the Civil Health Care Fraud Coordinator is Assistant U.S. Attorney Adam Townshend. Miles stated, “AUSA Beckering, AUSA Townshend, and other AUSAs engage various Michigan health care communities through outreach efforts including speaking at annual conference sessions for the Michigan Academy of Physician Assistants, the Michigan Council of Nurse Practitioners, and physician groups to educate practitioners on illegal kickback schemes and diverting prescription drugs.”
“The partnership between the U.S. Attorney’s Office and the HHS-Office of Inspector General is very strong”, stated Lamont Pugh III, Special Agent in Charge, DHHS-OIG-OI-Chicago Region. “A significant part of the OIG’s mission is to protect the integrity of the Medicare and Medicaid programs and the health and welfare of the people they serve. The OIG continues to work diligently to identify, investigate, and seek the indictment and conviction of those who would attack these programs. We will continue to work in concert with the U.S. Attorney’s Office and other law enforcement agencies to hold wrongdoers accountable”.
U.S. Attorney Miles said that many health care frauds involve unnecessary procedures and tests. “Law enforcement and our Office continue to focus on unnecessary laboratory testing, including unnecessary blood, urine, and drug testing. We will also address improper relationships between practitioners and laboratory testing companies,” Miles said.
It is illegal to offer or request, or pay or receive, money or anything of value in exchange for referring Medicare and Medicaid patients for health care services. U.S. Attorney Miles observed that “kickbacks and other suspect arrangements are saturating the Western District of Michigan, particularly in the areas of home health care, diagnostic testing, and laboratory testing. Kickbacks also distort the competitive playing field, taking business away from providers who play by the rules.”
U.S. Attorney Miles says patients and health care consumers can help stop frauds by looking out for the following “Red Flags”:
• Benefit Statements: -- Check for services and procedures not rendered
-- Cost of procedures disproportionate with time or complexity• Waivers of Co-Payments: -- Blanket waivers of copays are generally not permitted
-- Good indication of fraud schemes because if patients are not paying, they are unlikely to scrutinize insurance billingsThe following are some recent health care fraud case highlights from the U.S. Attorney’s Office in the Western District of Michigan:
Civil Case Settlements
United States, et al., ex rel. Jahn, et al. v. Agility Health, Inc., et al.
The U.S. Attorney’s Office recovered $1,000,000 in a whistleblower lawsuit involving allegations of false claims to Medicare for skilled therapy services that were not provided or provided to beneficiaries who were incapable of participating in therapy programs. The whistleblowers recovered more than $200,000.
United States v. Portage Hospital LLC
The U.S. Attorney’s Office recovered $4,446,392.43 in a voluntary disclosure by Portage Hospital in Hancock, Michigan stemming from billings by the hospital’s home health care agency for physical therapy services -- purportedly performed by a single staff physical therapist -- that were medically unnecessary and/or lacked adequate documentation.
United States ex rel. Morgan v. Advanced Professional Home Health Care
The U.S. Attorney’s Office recovered $57,000 in an action brought by a whistleblower, and the home health care agency agreed to implement a compliance program to resolve allegations that the agency illegally altered physicians’ signature dates and other information on physician orders in order to bill home health care services to Medicare.
Criminal Convictions
United States v. Kim Mulder, et al.
Initiated by reports from former employees, the execution of federal search warrants and a DEA Immediate Suspension Order resulted in the cessation of operations and the subsequent filing of criminal charges against eighteen Kentwood Pharmacy officers and employees related to the dispensing and billing for adulterated and misbranded drugs to nursing homes and adult foster care homes. The convictions included felony charges for six licensed pharmacists and prison sentences of six years for the head pharmacist and fourteen years for the Vice President of Sales. The CEO Kim Mulder and one other pharmacist are pending sentencing. The district court found a Medicare fraud loss of over $80,000,000 stemming from payments for the recycled drugs and ordered over $8,000,000 in restitution.
United States v. Chyawan Bansil, Shannon Wiggins, Mohamad Abduljaber
Reports concerning the diversion of prescription drugs led to an investigation of the Lansing medical practice of Dr. Shannon Wiggins. Undercover patient visits revealed an illegal kickback scheme where Dr. Wiggins and her husband/ officer manager Mohamad Abduljaber were paid to refer patients for purported EMG and nerve conduction testing that was not necessary and often not performed. Dr. Wiggins also charged cash payments for medical marijuana certifications. The investigation exposed that Dr. Wiggins and Mr. Abduljaber did not report the cash income to the IRS. Global resolutions of civil claims and criminal kickback and tax charges resulted in: felony convictions and prison sentences for all three defendants; collection from Mr. Bansil of $2,250,000 in civil treble damages on behalf of Medicare and $350,000 in restitution paid to BCBSM; $150,000 in forfeiture from Mr. Bansil; and court-ordered restitution from Dr. Wiggins and Mr. Abduljaber of $285,781 to Medicaid and forfeiture of $550,000, including automobiles and real property. The pattern of Dr. Wiggins’ referrals demonstrates the costly impact of unnecessary testing as a result of illegal kickback payments.
United States v. Babubhai Rathod et al.
In an ongoing civil case and parallel criminal investigation stemming from the filing of a whistleblower lawsuit, the U.S Attorney’s Office has convicted nine individuals on felony kickback and health care fraud charges and reached civil settlements with an additional six practitioners that total over $1,200,000 and involve 25 years of individual exclusions from federal health care programs. To date, the whistleblower has received more than $200,000.
The lead defendant, Babubhai Rathod of Okemos, Michigan, was sentenced to four years’ imprisonment for coordinating illegal referral payments to physician assistants and doctors to refer patients to his physical therapy clinics and a home health care agency. Rathod lost his physical therapy license as a result of a criminal conviction and allegations of patient assaults, but he was able to open a home health agency based on the fact that there are no licensing or certificate of need requirements to opening a home health company in Michigan. The government collected $900,000 in a related civil False Claims Act settlement.
United States v. Anthony Kirk
United States v. Martin HoffmeisterAs part of a state-wide initiative, HHS-OIG separately investigated Grand Rapids podiatrists Anthony Kirk and Martin Hoffmeister for the billing of nail avulsions. Dr. Kirk pled guilty to felony health care fraud, was sentenced to six months in prison, and was ordered to pay $65,110 in restitution and a $15,000 fine. Dr. Hoffmeister pled guilty to a misdemeanor charge and was ordered to pay over $50,000. Both podiatrists were excluded from participation with Medicare and Medicaid for at least five years. The prosecution of these cases and others in the Eastern District of Michigan has resulted in an annual reduction of almost 30%, or $3,000,000, in nail avulsion payments by Medicare.
To report any kind of Health Care Fraud, people are encouraged to contact HHS through their tip line—1-800-HHS-TIPS.
END
Federal Jury Convicts Wellington Man on Child Pornography ChargesRead the Press Release
WICHITA, KAN. – A federal jury Thursday returned guilty verdicts in the trial of a Wellington man charged with distributing child pornography, U.S. Attorney Barry Grissom said.
Steven J. Meisel, 48, Wellington, Kan., was convicted on one count of distributing child pornography and one count of possessing child pornography. During trial, prosecutors presented evidence that on May 9, 2014, a Wichita police detective downloaded child pornography from Meisel’s computer over the ARES P2P computer network. The files included images of prepubescent children engaged in sex acts. Investigators followed an electronic trail to Meisel’s computer at his residence in Wellington.
Sentencing is set for July 1. He faces a penalty of not less than five years and not more than 20 years and a fine up to $250,000 on the distribution charge; and a maximum penalty of 10 years and a fine up to $250,000 on the possession charge. Grissom commended the Wichita Police Department, the Sedgwick County Sheriff’s Office, the Exploited and Missing Child Unit, the Internet Crimes Against Children Task Force, the Wellington Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Federal Court Sentences Former Davenport Man for Conspiracy to Distribute MarijuanaRead the Press Release
DAVENPORT, IA - On March 26, 2015, Jared Michael Fromknecht, age 23, formerly of Davenport, Iowa, and Denver, Colorado, was sentenced by United States District Court Senior Judge James E. Gritzner to 59 months in prison, after pleading guilty to conspiracy to distribute at least 100 kilograms of marijuana, announced United States Attorney Nicholas A. Klinefeldt. Fromknecht was also ordered to serve three years of supervised release, and to pay $100 towards the Crime Victims Fund.
From approximately May 2011, to March 6, 2013, Fromknecht agreed with several individuals, including George Podes, Morgan Hermiston, Charles Williams, Harrison Summers, Jacob Aldrich, Michael Wood and Austin Iossi to distribute marijuana. Fromknecht would obtain multiple pound quantities of marijuana in Colorado, mainly from Podes, and ship this marijuana, or direct others to ship this marijuana by mail service to Iowa. During this conspiracy, Fromknecht was present at the Denver residence of George Podes, and assisted Podes in cultivating and growing marijuana. Fromknecht shipped marijuana to Charles Williams and directed Williams to deposit payment in a bank account. Fromknecht mailed packages of marijuana to Jacob Aldrich and Michal Wood and directed them to deliver this marijuana to Morgan Hermiston. He also recruited Andres Guillermo Sanchez to ship marijuana through the mail and receive payments for these drugs in Colorado. During this conspiracy, drug proceeds of over $200,000 were deposited in a bank account. Fromknecht admitted being responsible for in excess of 100 kilograms of marijuana.
This case was investigated by the Drug Enforcement Administration, the Iowa Department of Public Safety-Division of Narcotics Enforcement, the United States Postal Inspections Service, and the Davenport, Iowa, Police Department. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Fairbanks Drug Dealer Convicted of ConspiracyRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that after a two–day trial, a federal jury found Etienne Q. Devoe, 42, of Fairbanks, Alaska, guilty of Conspiracy to Distribute Cocaine and Heroin, and Conspiracy to Money Launder.
According to the evidence at trial, Devoe was a drug dealer located in Fairbanks. Between May 2, 2013, and June 13, 2013, law enforcement captured phone calls and text messages between Devoe and his co-conspirator, Steven N. Taylor. In those calls, Devoe and Taylor discussed their ongoing drug trafficking relationship. As part of that relationship, Taylor supplied cocaine and heroin to Devoe for distribution in and around the Fairbanks area. Devoe paid for those drugs by sending Taylor money through a checking account at a local bank.
On June 20, 2013, Fairbanks police responded to shooting at a rented house on Gillem Way. Devoe was found hiding in an upstairs bedroom closet at the residence, which he shared with his girlfriend. Also located in the residence were drug trafficking supplies, including packaging materials and an adulterant commonly used to cut cocaine prior to its resale.
This is Devoe’s second federal conviction for a drug trafficking offense. In February 2012, Devoe was found in possession of approximately 6 ounces of cocaine, along with packaging material. He was convicted of Possession of Cocaine with the Intent to Distribute and sentenced to 57 months imprisonment. The case number for that matter is 4:14-cr-00002-RRB.
The case was the product of an investigation by multiple law enforcement agencies, including the Drug Enforcement Administration, Internal Revenue Service, FBI Safe Streets Task Force, Anchorage Police Department, Fairbanks Police Department, Alaska State Troopers, and the University of Alaska, Fairbanks Police. Assistant U.S. Attorneys Kyle Reardon, and Timothy Edmonds prosecuted the case.
Devoe was indicted on June 16, 2014. Other defendants named in the Indictment include Taylor, James Brown, Sr., Leonard D. Charles, Shawn Cortez Cloyd, Timothy W. Northcutt, Joshua J. Haynes, Gabrielle P. Haynes, and Joseph E. Irving.
Devoe is scheduled to be sentenced by Judge Ralph R. Beistline on June 8, 2015
The maximum statutory penalty for a violation of 21 U.S.C. §§ 841(a)(1) and 846, Conspiracy to Distribute Controlled Substances, is not less than five years and up to 40 years imprisonment, a fine of $5,000,000, a four-year term of supervised release, and a $100 special assessment. The maximum statutory penalty for a violation of 18 U.S.C. § 1956(h), Money Laundering Conspiracy, is up to 20 years imprisonment, a fine of up to $500,000, a five year term of supervised release, and a $100 special assessment. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
“Drug trafficking is motivated by money. IRS CI, DEA, and our other law enforcement partners are motivated to protect our communities by clearing our streets of those who distribute and profit from the sale of illicit drugs. This verdict sends a strong message that the full force of the law will vigorously work together to eradicate drug conspiracies,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigation.
“This verdict is the result of law enforcement working together in bringing a longtime Fairbanks drug trafficker to justice,” said DEA Acting Special Agent in Charge Douglas James. “This significant investigation could not have been done without the collaboration of the many federal, state and local law enforcement partners who are dedicated in dismantling major drug trafficking organizations.”
“The mission of the FBI Safe Streets Task Force was exemplified by this case - Operation Super Bad - which is to identify and target for prosecution criminal enterprises and groups responsible for a myriad of crimes that negatively impact the community. The guilty verdict for Mr. Devoe represents another violent offender off the streets of Alaska,” said FBI Supervisory Special Agent Kurt S. Ormberg.
Ex-Professional Boxer Sentenced for Marijuana TraffickingRead the Press Release
TUCSON, Ariz. – On March 25, 2015, Juan Antonio Suazo, 34, of Tucson, Ariz., was sentenced by Chief U.S. District Court Judge Raner C. Collins to 84 months in prison and fined $15,000. Suazo pleaded guilty on Dec. 2, 2014, to conspiracy to possess with the intent to distribute more than 100 kilograms of marijuana.
In 2009, Suazo, a former Golden Gloves champion and ex-professional boxer, supplied 300- to 350- pound loads of marijuana on multiple occasions to the buyers for distribution in several states including Nebraska, and received in excess of three million dollars in return. The U.S. government seized approximately one million dollars in the course of the investigation.
The investigation in this case was conducted by agencies participating in the Organized Crime Drug Enforcement Task Force. The lead agencies were the U.S. Drug Enforcement Administration and the Federal Bureau of Investigation assisted by the Internal Revenue Service- Criminal Investigation. Other participants included the Tucson Police Department, Arizona Department of Public Safety, and the Arizona Department of Transportation. The prosecution was handled by Anthony E. Maingot and Heather Sechrist, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-13-0865-TUC-RCC
RELEASE NUMBER: 2015-025_ Suazo
East St. Louis Man Sentenced to Prison for Gun PossessionRead the Press Release
James J. Young, 21, of East St. Louis, Illinois, was sentenced today in the U.S. District Court for the Southern District of Illinois to 37 months in prison and 3 years of supervised release on one count of Possession of a Weapon by a Felon. Evidence showed that Young was on parole and was living in public housing in East St. Louis with his mother. On May 1, 2014, during a parole compliance check, Young was found to be in possession of a Glock Model 27, .40 caliber pistol, loaded with 13 rounds. He had previously been convicted of Attempted Residential Burglary.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Illinois Department of Corrections Parole Office. The case was prosecuted by Assistant United States Attorney Laura Reppert.
Defendant Pleads Guilty to Robbing Three Banks as the Bearded BanditRead the Press Release
SAN DIEGO – Christopher Andrew Gibson, dubbed the “Bearded Bandit,” pleaded guilty today to robbing three San Diego banks of more than $7,600 in late 2014.
Gibson entered his plea before U.S. Magistrate Judge Karen S. Crawford to three counts of bank robbery, and was ordered to appear in front of U.S. District Judge Marilyn L. Huff for sentencing on July 20, 2015.
In the course of the investigation, the Federal Bureau of Investigation learned that Gibson committed the first bank robbery within hours of being released from the George Bailey Detention Facility, where he was held on unrelated charges. Gibson was dubbed the “Bearded Bandit” because of the shaggy facial hair he had in the first two robberies.
According to his plea agreement, Gibson entered Wells Fargo Bank, located at 685 Saturn Boulevard, San Diego, on October 7, 2014, and presented a bank employee with a note that was paraphrased as follows: “I know your training. No dye packs. No GPS devices. I want $4,567. Hurry cause I'm not waiting all day.” Gibson then took approximately $1,419.00 from the employee and fled the bank.
Gibson admitted in his plea agreement that he followed up with a robbery a week later in Vista at a Chase Bank, located at 1641 South Melrose Drive, on October 15, 2014. During the robbery, Gibson presented a bank employee with a note, which in effect said, “I know your training. I want $4,788 in 15 seconds. No dye packs or GPS devices.” Gibson took approximately $2,240.00 from the employee and fled the bank.
Gibson’s final robbery occurred at a second Chase Bank, located at 985 Vista Way in Vista, on November 6, 2014, his plea agreement said. During the robbery, Gibson presented a bank employee with a note, reading to the effect, “Don't be stupid and press any buttons. I know your training so just cooperate. I want $4,000 and no GPS devices or dye packs. No fake bills. I'm counting to 30.” Gibson took approximately $4,000.00 from the employee and fled the bank. The demand notes were not recovered.
DEFENDANTS Case Number: Christopher Andrew Gibson Age: 26 Vista, California CHARGESCounts 1-3: Bank Robbery – Title 18, U.S.C., Section 2113(a)
INVESTIGATING AGENCIES
Maximum penalty: 20 years’ imprisonment and $250,000 fineFederal Bureau of Investigation
Court of Appeals Upholds Conviction and Sentence of a Woman who Concealed her Role in Rwandan GenocideRead the Press Release
BOSTON – The U.S. Court of Appeals for the First Circuit in Boston affirmed the conviction and sentence of a Manchester woman who was convicted of procuring citizenship unlawfully. This was the first such conviction in the nation based on concealing one’s personal participation in the Rwandan genocide.
Beatrice Munyenyezi, 45, was convicted in February 2013 following a 12-day trial of obtaining her U.S. citizenship unlawfully after fleeing her native country of Rwanda by misrepresenting material facts to U.S. Immigration authorities both before and after she arrived here. She was sentenced in July 2013 to 10 years in prison and stripped of her U.S. citizenship.
Munyenyezi concealed her role in the 1994 Rwandan genocide, including her involvement in the MRND (National Republican Movement for Democracy and Development), the political party in power before and during the genocide, and its youth wing, the Interahamwe. In affirming Munyenyezi’s conviction and sentence, the Court of Appeals stated that the evidence at trial provided for a “bone-chilling read,” and that the jury could reasonably have concluded that Munyenyezi, “personally inspected IDs” at a roadblock in front of the Hotel Ihuriro, where Munyenyezi was living during the genocide, that she “separated those who would live from those who would die (and die gruesomely), and kept records of the ghastly-goings on,” and thereafter misrepresented these facts in order to obtain immigration and naturalization benefits.
In a separate appeal, the Court of Appeals also affirmed the conviction of Prudence Kantengwa, a/k/a Prudentienne Kantengwa, on charges of immigration fraud, perjury, and obstruction of proceedings before an immigration court. The charges against Kantengwa stemmed from lies she told about her membership in the MRND, her husband’s role as the director of Rwandas internal security service, and her knowledge of the existence of a genocidal roadblock erected in front of the Hotel Ihuriro, where Kantengwa spent half the period of the genocide in the company of individuals subsequently convicted of genocide in the International Criminal Tribunal for Rwanda.
United States Attorney Carmen M. Ortiz said, “These cases should send a strong message to all those who would seek to cheat the immigration system by lying about their background or otherwise deceiving U.S. immigration authorities. The United States will not be a safe haven for those who conceal their past in order to gain the privilege of living in this country.”
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. The cases were prosecuted by Assistant U.S. Attorneys Aloke Chakravarty and John Capin of Ortiz’s Anti‑Terrorism Unit in the District of Massachusetts. The appeals were handled by Assistant U.S. Attorney Mark T. Quinlivan of Ortiz’s Appeals Unit.
Convicted Felon Sentenced to over 5 Years in Prison for Possessing FirearmRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STEPHEN FARRELL, age 25, of Metairie, was sentenced today after having previously pled guilty to possession of a firearm by a convicted felon.
U.S. District Judge Jane Triche Milazzo sentenced FARRELL to 68 months of incarceration, to be followed by 3 years of supervised release.
According to court documents, on May 8, 2013, Jefferson Parish Sheriff’s Office detectives searched FARRELL’s residence located at 705 Central Avenue in Metairie. During the search, detectives found a loaded Taurus International .380 caliber firearm and ammunition.
Court records revealed that FARRELL was convicted on or about February 6, 2007, of attempted armed robbery in the 24th Judicial District Court in Jefferson Parish. As such, he was prohibited from possessing firearms by both state and federal law.
U.S. Attorney Polite praised the work of the Alcohol, Tobacco, Firearms and Explosives, New Orleans Division Office and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Nolan D. Paige was in charge of the investigation.
Connecticut Man Pleads Guilty in White Plains Federal Court to Nearly $ 1 Million Fraud Against More Than 30 Businesses in Eight StatesRead 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”), announced that SHANE FUSCO pled guilty today to bank fraud charges.
FUSCO is charged with one count of conspiracy to commit bank fraud and one count of bank fraud.
Manhattan U.S. Attorney Bharara stated: “Shane Fusco brazenly defrauded dozens of small businesses up and down the Eastern seaboard of hundreds of thousands of dollars in goods using fraudulent bank checks and fraudulent personal checks. In the end, Fusco will face justice for trying to steal close to a million dollars in goods.”
FBI Assistant Director Diego Rodriguez stated: “Fusco conned more than two dozen businesses out of nearly $1 million in a scheme that served to further enrich his lifestyle. Stealing money from victims in this way not only compromises the livelihood of business owners, but could also lead to long-term financial consequences for the victim companies. As evidenced by today’s plea, the time has come for Fusco to pay the price for his crimes.”
According to the Information filed in White Plains federal court and public information:
For almost two years, FUSCO fraudulently created bank and personal checks in a scheme to obtain vehicle parts and jewelry, among other items, from 34 businesses and one individual. FUSCO was eventually caught using a fake check in an attempt to buy tires while driving a stolen truck that was hitched to a stolen trailer.
FUSCO faces a maximum sentence of 30 years in prison on each count in the Information. He is scheduled to be sentenced on July 8, 2015. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes, any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding efforts of the United States Attorney’s Office for the District of Connecticut, the FBI, the United States Secret Service Connecticut Financial Crimes Task Force, the Orange County Sherriff’s Office, and the Connecticut State Police.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney John P. Collins, Jr., is in charge of the prosecution.
Cincinnati Man Sentenced for Operating Sex Trafficking Scheme in Ohio and KentuckyRead the Press Release
Defendant Used Violent Assaults and Physical Restraints to Compel Young Women to Engage in Prostitution for the Defendant’s Profit
Senior U.S. District Judge John G. Heyburn II of the Western District of Kentucky sentenced Cincinnati resident, Christopher Hisle, 45, to serve 180 months in prison and 10 years of supervised release, the Justice Department announced today. Restitution will be determined at a future date. Hisle pleaded guilty on Nov. 14, 2014, to sex trafficking by force, fraud and coercion, and to enticing individuals to travel in interstate commerce for prostitution and transporting individuals in interstate commerce for prostitution.
Police arrested Hisle on April 8, 2014, in Louisville, Kentucky, after he drove a young woman from Cincinnati to Louisville to engage in prostitution at a Louisville motel. Subsequent investigation linked Hisle to the prostitution of multiple additional women in Ohio, Kentucky and elsewhere.
According to the evidence presented in court proceedings and documents filed in the case, Hisle physically assaulted several of the young women he exploited for prostitution, including striking one of the victims in the face when she threatened to run away. In furtherance of his sex trafficking scheme, Hisle controlled the women he prostituted by various means, including boards and locks which restricted the women’s ability to exit the dwelling where Hisle housed them when he was not transporting them for prostitution.
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” said Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “This sentence sends a clear message that the United States will not tolerate modern-day slavery and will work tirelessly to restore the rights and dignity of the victims of this crime.”
“The horrors of human trafficking cause unimaginable pain, desperation and despair,” said Acting U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky. “And the fear of violence and other reprisals all too often keep victims from reporting this heinous crime. My office is working hard to train our law enforcement partners so that we can recognize this tragic situation and then bring justice with a solid sentence for the defendants and an order of restitution for victims.”
“Protecting the civil rights of every individual in our community is one the FBI’s top criminal priorities,” said Special Agent in Charge Howard S. Marshall of the FBI’s Louisville Office. “We work closely with community leaders and our law enforcement partners to proactively target predators involved in human trafficking. These women were exploited as a reusable commodity by men that forced them to participate in the sex trafficking industry. Our agents and task force officers work tirelessly to address every civil rights allegation we receive; I am proud of the hard work they do to protect and rescue the victims that are unable to defend themselves.”
This case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Cincinnati Man Sentenced for Operating Sex Trafficking Scheme in Ohio and KentuckyRead the Press Release
Defendant Used Violent Assaults and Physical Restraints to Compel Young Women to Engage in Prostitution for the Defendant’s Profit
WASHINGTON – Senior U.S. District Judge John G. Heyburn II of the Western District of Kentucky sentenced Cincinnati resident, Christopher Hisle, 45, to serve 180 months in prison and 10 years of supervised release, the Justice Department announced today. Restitution will be determined at a future date. Hisle pleaded guilty on Nov. 14, 2014, to sex trafficking by force, fraud and coercion, and to enticing individuals to travel in interstate commerce for prostitution and transporting individuals in interstate commerce for prostitution.
Police arrested Hisle on April 8, 2014, in Louisville, Kentucky, after he drove a young woman from Cincinnati to Louisville to engage in prostitution at a Louisville motel. Subsequent investigation linked Hisle to the prostitution of multiple additional women in Ohio, Kentucky and elsewhere.
According to the evidence presented in court proceedings and documents filed in the case, Hisle physically assaulted several of the young women he exploited for prostitution, including striking one of the victims in the face when she threatened to run away. In furtherance of his sex trafficking scheme, Hisle controlled the women he prostituted by various means, including boards and locks which restricted the women’s ability to exit the dwelling where Hisle housed them when he was not transporting them for prostitution.
“This defendant preyed on vulnerable young victims and cruelly exploited them for his profit,” said Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division. “This sentence sends a clear message that the United States will not tolerate modern-day slavery and will work tirelessly to restore the rights and dignity of the victims of this crime.”
“The horrors of human trafficking cause unimaginable pain, desperation and despair,” said Acting U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky. “And the fear of violence and other reprisals all too often keep victims from reporting this heinous crime. My office is working hard to train our law enforcement partners so that we can recognize this tragic situation and then bring justice with a solid sentence for the defendants and an order of restitution for victims.”
“Protecting the civil rights of every individual in our community is one the FBI’s top criminal priorities,” said Special Agent in Charge Howard S. Marshall of the FBI’s Louisville Office. “We work closely with community leaders and our law enforcement partners to proactively target predators involved in human trafficking. These women were exploited as a reusable commodity by men that forced them to participate in the sex trafficking industry. Our agents and task force officers work tirelessly to address every civil rights allegation we receive; I am proud of the hard work they do to protect and rescue the victims that are unable to defend themselves.”
This case was investigated by the FBI and was prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Chicago Attorney Guilty of Large Scale Fraudulent Investment SchemeRead the Press Release
Contact Person: David Stephens (864) 282-2100
Greenville, South Carolina ---- United States Attorney Bill Nettles announced that Kathleen Niew, of Chicago, Illinois, pled guilty in Columbia, South Carolina, today to three counts of Wire Fraud in violation of Title 18, United States Code, Section 1343. Niew faces a possible sentence on each count of up to 20 years in prison and a fine of up to $250,000.00. The plea was accepted by United States District Judge Mary G. Lewis, who will sentence Niew after an investigation by the United States Probation Office.
Mr. Nettles stated that the case was investigated by the Federal Bureau of Investigation (FBI) along with Assistant United States Attorney David C. Stephens who prosecuted the case. At the guilty plea hearing, Mr. Stephens advised the Court of the following facts.
The FBI working out of Greenville, South Carolina, has conducted a decade long undercover operation into persons offering bogus investments commonly referred to as High Yield Investment Programs. In these schemes, victims are told that there are secret European medium term note trading programs that are risk free and yield returns of as much as 100% per month. Such trading programs, of course, do not exist; however, the “pitch” can be so convincing that the U. S. Department of the Treasury has documented tens of millions of dollars of losses every day.
Niew was one of over 150 persons caught in the undercover operation. She was recorded on the telephone offering one of these bogus investments to persons she believed were potential investors in South Carolina. Niew then traveled to South Carolina and met in person with the investors who she was led to believe controlled the investment funds of a large national charity. The amount that she sought to obtain was $100 Million. Unbeknownst to Niew the persons she was dealing with were FBI Special Agents pretending to be potential investors and her entire fraudulent presentation was being videotaped.
Mr. Stephens also advised the Court that in addition to the above-described attempted fraud, it is believed that Niew stole millions of dollars from actual investors and the names of those persons and their exact losses continue to be investigated. Mr. Nettles asked that anyone who has had financial dealings with Niew and lost money in those dealings to please contact his Victim-Witness Coordinator at (803) 929-3000 or Mr. Stephens at (864) 282-2100.
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Charleston man indicted for filing fraudulent tax returnsRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that a 39-year old man was indicted yesterday by a federal grand jury sitting in Charleston for filing multiple false claims with the Internal Revenue Service. According to the 12-count indictment, Michael D. Jarrell, formerly of Boone County, West Virginia, filed fraudulent Individual Income Tax Return Forms for tax years 2009 – 2011, in which he claimed refunds in the names of individuals for whom he was not authorized to file. Further, as alleged in the indictment, these tax forms contained false information about the residences, employment, bank accounts and income for these individuals, as well as false withholdings. The false refunds totaled over $57,000.
Each count carries a statutory maximum of up to five years’ imprisonment upon conviction.
The investigation is being conducted by the Internal Revenue Service under its stolen identity refund fraud initiative. Assistant United States Attorney Eumi L. Choi is in charge of the prosecution.
A copy of the indictment is linked below.
Note: the charges contained in the indictment are merely accusation, and the defendant is presumed innocent unless and until proved guilty.