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23 March 2015
Frisco Man Sentenced to 10 Years in Federal Prison for the Attempted Enticement of A MinorRead the Press Release
DALLAS, Texas — Matthew Jarmon, 24, of Frisco, Texas, was sentenced this morning by U.S. District Judge David C. Godbey to 10 years in federal prison, following his guilty plea in December 2014 to one count of attempted enticement of a minor, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
According to the factual resume filed in the case, in June 2014, Jarmon used his computer to engage in a number of sexually explicit “chat” conversations with a minor under the age of 17. Jarmon made plans to meet the minor and to engage in sexual activity with the minor. Upon arriving at the pre-arranged location on June 18, 2014, Jarmon was arrested by law enforcement.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Garland Police Department and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Camille Sparks prosecuted.
Fresno Woman Pleads Guilty to Bomb Threat Hoax at Fresno City CollegeRead the Press Release
FRESNO, Calif. —Judy Gutierrez, 22, of Fresno, pleaded guilty today to violating federal law by making a false bomb threat (false information and hoax), United States Attorney Benjamin B. Wagner announced.
According to court documents, on January 22, 2014, Judy Gutierrez emailed a bomb threat to her biology professor at Fresno City College resulting in classes in the science building being cancelled for the day. The science building was evacuated and searched, but no bomb was found by police.
This case is the product of an investigation by the Federal Bureau of Investigation and the State Center Community College District Police Department. Assistant United States Attorney Duce Rice is prosecuting the case.
Gutierrez is scheduled to be sentenced by United States District Judge Anthony W. Ishii on July 27, 2015. Gutierrez faces a maximum statutory penalty of five years in prison and a $250,000 fine. 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.
Freedom Industries pleads guilty to environmental crimesRead the Press Release
Charleston, W.Va. – Freedom Industries pleaded guilty in federal court today in Charleston to three environmental crimes in connection with the January 2014 Elk River chemical spill, U.S. Attorney Booth Goodwin announced. Freedom, which owned and operated the facility from which the chemical MCHM spilled into the river, pleaded guilty to negligent discharge of a pollutant, the unlawful discharge of refuse, and violating a permit condition. Sentencing of the company is scheduled for June 29, 2015.
The case is being investigated by the Federal Bureau of Investigation and the Environmental Protection Agency - Criminal Investigation Division.
Former U.K. Rabobank Derivatives Trader Pleads Guilty to LIBOR Interest Rate Manipulation ChargesRead the Press Release
A former senior derivatives trader at the London desk for Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) pleaded guilty today in U.S. federal court for his role in a scheme to manipulate the U.S. Dollar (USD) and Yen London InterBank Offered Rate (LIBOR), a benchmark interest rate.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.
Lee Stewart, 51, of London appeared in the Southern District of New York before United States District Judge Jed S. Rakoff and pleaded guilty to one count of conspiracy to commit wire and bank fraud. A sentencing hearing is scheduled for June 9, 2017.
At the time relevant to the charges, LIBOR was an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believed they would be charged if borrowing from other banks. It served as the primary benchmark for short-term interest rates globally and was used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. LIBOR was published by the British Bankers’ Association, a trade association based in London, and was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for U.S. Dollar and Yen currency for a specific maturity was the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
According to admissions made in connection with his guilty plea, Stewart worked as a senior derivatives trader at Rabobank’s London desk from 1993 to 2009, and entered into derivative contracts involving interest rate swaps linked to the U.S. Dollar LIBOR rate. Stewart admitted that from May 2006 through early 2011, he conspired with others at Rabobank to manipulate the LIBOR benchmark interest rate, which was tied to the profitability of interest rate derivative trades entered into by Rabobank traders.
The investigation is being conducted by special agents, forensic accountants and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section and Trial Attorney Michael T. Koenig of the Antitrust Division. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the investigation. The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of conduct at Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
Former Owner of Health PMO Serves Nearly Four Years in Prison for Illegal Distribution of Drugs and Money LaunderingRead the Press Release
-Websites were used to dispense pharmaceutical drugs without prescriptions
LOUISVILLE, Ky. – The former owner of Health PMO was sentenced to time served, of 45 months in prison, and ordered to pay $20,000 in restitution by Senior Judge Charles R. Simpson, III in U.S. Federal Court today, for conspiring to illegally distribute and dispense controlled substances, wire fraud, and conspiring to commit money laundering, announced Acting U.S. Attorney John E. Kuhn, Jr.
Stacy Allen Taylor, age 47, of Louisville, pleaded guilty to the charges on October 22, 2014, in U.S. District Court. Taylor admitted that between March of 2008 and March of 2009, he conspired and agreed with others to distribute and dispense prescription drugs, by setting up an internet pharmacy to dispense controlled substances to customers without valid prescriptions. Taylor used various web site addresses including www.RXvaluePharm.com to distribute and dispense hundreds of orders for prescription drugs, throughout the United States each day, generating sales of Schedule II, III, and IV controlled substances for a profit that totaled $790,753.51.
“Many of these drugs had a high potential for abuse and dependence,” stated Acting U.S. Attorney John Kuhn. “Without a license to prescribe or dispense prescription drugs, Taylor was no more than a drug dealer with a website. We hope and expect today’s sentence will be a deterrent to those who might consider trying to conduct illegal pharmaceutical sales using the internet.”
According to court documents, customers were not required to provide prescriptions from a practitioner, licensed by law, to administer such drugs before dispensing the controlled prescription drugs. Instead, Taylor permitted customers to fill out forms or provide information to telemarketing sales agents, allowing customers to choose the type and quantity of controlled substances and other prescriptions they wished to purchase. Over time, Taylor approved every order for which a valid credit card was provided and unlawfully distributed hundreds of prescriptions drugs on a daily basis. At no time was Taylor licensed to practice medicine or pharmacy by the Commonwealth of Kentucky.
As part of this scheme, Taylor admitted that beginning in March 2008, and continuing until at least March 2009, he committed wire fraud. Taylor conspired with others to conduct financial transactions affecting interstate and foreign commerce which involved the proceeds of unlawful activity, namely, the unlawful distribution and dispensing of, and conspiracy to distribute and dispense, controlled substances and other substances. To accomplish this, Taylor and his co-conspirators sent wire transfers from a Health PMO Class Act Federal Credit Union account to an account at the Federal Bank of the Middle East, Ltd., Nicosia, Cypress. These wire transfers were from the proceeds of selling and distributing controlled substances and other drugs to customers in the United States and other locations.
Further, Taylor admitted to knowingly engaging in a scheme to defraud investors of Health PMO beginning in June 2008. This scheme was used to obtain money and property by soliciting and receiving money from individuals by promising them stock in Health PMO. Taylor falsely represented and promised to provide investment interest (stock) in Health PMO. Instead, Taylor used the funds received for his personal benefit and gain.
The case was prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and was investigated by the U.S. Food and Drug Administration Office of Criminal Investigations and the United State Postal Inspection Service.
Former Omaha Man Sentenced for Bank RobberyRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 20, 2015, Trent Nitzel, 46, formerly of Omaha, Nebraska, was sentenced in federal court in Omaha for Bank Robbery. The Honorable Joseph F. Bataillon sentenced Nitzel to 44 months in prison. Nitzel has been incarcerated since December 5, 2011, and was given credit for approximately 40 months of prison time already served. Nitzel’s sentence of 44 months prison will be in addition to the 40 months of prison already served. There is no parole in the federal system. After his release from prison, Nitzel will begin a three year term of supervised release.
On October 24, 2011, Nitzel robbed the Centennial Bank, located at 6307 Center Street, Omaha, Nebraska. During the robbery, Nitzel took from Centennial Bank an amount totaling approximately $5,027.00. On October 28, 2011, Nitzel robbed the First National Bank, located at 1601 Capitol Street, Omaha, Nebraska. During the robbery, Nitzel took from First National Bank an amount totaling approximately $3,730.00. During both of the robberies, Nitzel handed the teller a note demanding money. Nitzel did not use or display a weapon during either of the robberies.
Omaha Police investigated the robberies.
Former Dunwoody Police Detective Pleads Guilty to Running Fraudulent Warrant Checks in Return for Airline Tickets and Other KickbacksRead the Press Release
ATLANTA – Former Dunwoody Police Detective Robert Pasquale Bentivegna has pleaded guilty to disclosing sensitive law enforcement information in exchange for receiving kickbacks for him and his family.
“It is a sad day when a career law enforcement officer turns his back on decades of public service by selling his access to sensitive law enforcement information,” said Acting U.S. Attorney John Horn. “Bentivegna’s conduct undermines trust in law enforcement and could have exposed the public to significant harm.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s number one criminal investigative program remains that of public corruption due to the vast harm that it can cause. The guilty plea of former Dunwoody Det. Bentivegna illustrates the betrayal of the badge by a very seasoned law enforcement officer and the consequences that he now faces for this betrayal.”
“Acts of corruption within the Department of Homeland Security represent a serious threat to our nation and undermines the integrity of all DHS employees, who strive to maintain the integrity of the Department. The Office of Inspector General and its law enforcement partners will continue to pursue allegations of corruption and hold such shameless individuals like Mr. Bentivegna accountable,” said James E. Ward, Special Agent in Charge, DHS-OIG.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In July 2011, Bentivegna, a career law enforcement officer employed at the time with the Dunwoody, Georgia, Police Department and who had also served as a federal task force officer, began using an individual connected with a variety of illegal activities as a confidential informant.
In exchange for valuable personal items for himself and his family, Bentivegna performed searches and informed the confidential informant about any active arrest warrants listed under the informant's name in the Georgia Crime Information Center (“GCIC”) database. Such information can be valuable information to criminals, allowing them to flee before authorities can arrest them. In exchange, over the course of approximately 18 months, Bentivegna received airline tickets for himself and his wife to travel to New York, his daughter received a convertible car which she used for over a year, and his son received a car to drive for a period of time.
Bentivegna, 64, of Woodstock, Georgia, pleaded guilty to computer fraud for accessing information in the GCIC database for an improper purpose. Sentencing is scheduled for June 1, 2015 before United States District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation and Department of Homeland Security - Office of the Inspector General.
Assistant United States Attorney Garrett L. Bradford is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Dunwoody Police Detective Pleads Guilty to Running Fraudulent Warrant Checks in Return for Airline Tickets and Other KickbacksRead the Press Release
ATLANTA – Former Dunwoody Police Detective Robert Pasquale Bentivegna has pleaded guilty to disclosing sensitive law enforcement information in exchange for receiving kickbacks for him and his family.
“It is a sad day when a career law enforcement officer turns his back on decades of public service by selling his access to sensitive law enforcement information,” said Acting U.S. Attorney John Horn. “Bentivegna’s conduct undermines trust in law enforcement and could have exposed the public to significant harm.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The FBI’s number one criminal investigative program remains that of public corruption due to the vast harm that it can cause. The guilty plea of former Dunwoody Det. Bentivegna illustrates the betrayal of the badge by a very seasoned law enforcement officer and the consequences that he now faces for this betrayal.”
“Acts of corruption within the Department of Homeland Security represent a serious threat to our nation and undermines the integrity of all DHS employees, who strive to maintain the integrity of the Department. The Office of Inspector General and its law enforcement partners will continue to pursue allegations of corruption and hold such shameless individuals like Mr. Bentivegna accountable,” said James E. Ward, Special Agent in Charge, DHS-OIG.
According to Acting U.S. Attorney Horn, the charges and other information presented in court: In July 2011, Bentivegna, a career law enforcement officer employed at the time with the Dunwoody, Georgia, Police Department and who had also served as a federal task force officer, began using an individual connected with a variety of illegal activities as a confidential informant.
In exchange for valuable personal items for himself and his family, Bentivegna performed searches and informed the confidential informant about any active arrest warrants listed under the informant's name in the Georgia Crime Information Center (“GCIC”) database. Such information can be valuable information to criminals, allowing them to flee before authorities can arrest them. In exchange, over the course of approximately 18 months, Bentivegna received airline tickets for himself and his wife to travel to New York, his daughter received a convertible car which she used for over a year, and his son received a car to drive for a period of time.
Bentivegna, 64, of Woodstock, Georgia, pleaded guilty to computer fraud for accessing information in the GCIC database for an improper purpose. Sentencing is scheduled for June 1, 2015 before United States District Judge Leigh Martin May.
This case is being investigated by the Federal Bureau of Investigation and Department of Homeland Security - Office of the Inspector General.
Assistant United States Attorney Garrett L. Bradford is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Bechtel Executive Sentenced to 42 Months in Prison and Ordered to Forfeit $5.2 Million in Connection with Kickback SchemeRead the Press Release
The former principal vice president of Bechtel Corporation and general manager of a joint venture operated by Bechtel and an Egyptian utility company was sentenced today to 42 months in prison for accepting $5.2 million in kickbacks to manipulate the competitive bidding process for state-run power contracts in Egypt.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office made the announcement.
Asem Elgawhary, 73, of Potomac, Maryland, pleaded guilty on Dec. 4, 2014, to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws. In imposing sentence today, U.S. District Judge Deborah K. Chasanow of the District of Maryland also ordered Elgawhary to forfeit $5.2 million.
From 1996 to 2011, Elgawhary was assigned by Bechtel—a U.S. corporation engaged in engineering, construction and project management—to be the general manager at Power Generation Engineering and Services Company (PGESCo), a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company, known as EEHC. PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. According to his plea agreement, Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. One of the power companies, Alstom S.A., together with a Swiss subsidiary, pleaded guilty on Dec. 22, 2014, to violations of the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay bribes to foreign officials, including Elgawhary, in various countries.
As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control. Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors, falsely certifying that he had no knowledge or suspicion of any fraud at PGESCo, and that there were no possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements. Elgawhary also admitted that, in a further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.
Elgawhary further admitted to obstructing and interfering with tax laws by failing to report any of the kickback payments as income for the tax years 2008 through 2011 and providing false information about foreign bank accounts.
Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a criminal complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.
The case was investigated by the FBI’s Baltimore Division and IRS-CI’s Washington D.C. Field Office. Significant assistance was provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus. The case was prosecuted by Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David I. Salem of the District of Maryland.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Bechtel Executive Sentenced to over Three Years in Prison and Ordered to Forfeit $5.2 Million in Connection with Kickback SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Asem Elgawhary, 73, of Potomac, Maryland today to 42 months in prison for accepting $5.2 million in kickbacks to manipulate the competitive bidding process for state-run power contracts in Egypt. Judge Chasanow also ordered Elgawhary to forfeit $5.2 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office.
Elgawhary, the former principal vice president of Bechtel Corporation and general manager of a joint venture operated by Bechtel and an Egyptian utility company pleaded guilty on Dec. 4, 2014, to mail fraud, conspiracy to commit money laundering, and obstruction and interference with the administration of the tax laws.
From 1996 to 2011, Elgawhary was assigned by Bechtel—a U.S. corporation engaged in engineering, construction and project management—to be the general manager at Power Generation Engineering and Services Company (PGESCo), a joint venture between Bechtel and Egypt’s state-owned and state-controlled electricity company, known as EEHC. PGESCo assisted EEHC in identifying possible subcontractors, soliciting bids and awarding contracts to perform power projects for EEHC. According to his plea agreement, Elgawhary admitted to accepting a total of $5.2 million from three power companies, which they paid to secure a competitive and unfair advantage in the bidding process. One of the power companies, Alstom S.A., together with a Swiss subsidiary, pleaded guilty on Dec. 22, 2014, to violations of the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay bribes to foreign officials, including Elgawhary, in various countries.
As Elgawhary admitted in his plea agreement, he attempted to conceal the kickback scheme by routing the payments through various off-shore bank accounts, including Swiss bank accounts, under his control. Elgawhary also sent various documents and “Representation Letters” to Bechtel executives and members of the PGESCo Board of Directors, falsely certifying that he had no knowledge or suspicion of any fraud at PGESCo, and that there were no possible violations of law or regulations that should have been considered for disclosure in PGESCo’s financial statements. Elgawhary also admitted that, in a further attempt to conceal the scheme, he made misrepresentations to counsel for Bechtel when he was interviewed in April 2011.
Elgawhary further admitted to obstructing and interfering with tax laws by failing to report any of the kickback payments as income for the tax years 2008 through 2011 and providing false information about foreign bank accounts.
Elgawhary, a dual U.S. and Egyptian citizen, was arrested on a criminal complaint when he flew into the United States on Nov. 26, 2013, and was indicted on Feb. 10, 2014.
United States Attorney Rod J. Rosenstein thanked the FBI and IRS-CI for their work in the investigation. U.S. Attorney Rosenstein also recognized the significant assistance provided by the Criminal Division’s Office of International Affairs, and law enforcement counterparts in Switzerland, Germany, Italy, Saudi Arabia and Cyprus. Mr. Rosenstein praised Assistant U.S. Attorney David I. Salem and Assistant Chief Daniel S. Kahn of the Criminal Division’s Fraud Section, who prosecuted the case.
Former Banker in Great Bend Pleads Guilty to Bank FraudRead the Press Release
WICHITA, KAN. - A former loan officer for a bank in Great Bend pleaded guilty Monday to a federal charge of bank fraud, U.S. Attorney Barry Grissom said.
Brian W. Harrison, 56, Great Bend, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted the crime occurred during the time from 2004 to 2012 when he was a loan officer for Farmer’s Bank and Trust in Great Bend.
His duties included reviewing, approving and disbursing loans within his lending authority without the approval of the bank’s loan committee. In furtherance of a scheme to defraud the bank, he made or caused to be made false statements to the bank to hide the poor performance of various loans he made. His false statements were intended to deflect questions from the bank about problems with the loans. He falsified credit and loan applications, promissory notes and security agreements on behalf of a purported debtor without the debtor’s proper authority.
Sentencing is set for he. Both parties have agreed to recommend a sentence of six months in prison, followed by six months home detention, as well as an order to pay more than $124,000 in restitution.
Grissom commended the FBI, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) and Assistant U.S. Attorney Aaron Smith for their work on the case.
Fireman's Fund Insurance Company to Pay $44 Million to Settle False Claims Act AllegationsRead the Press Release
Fireman’s Fund Insurance Company has agreed to pay $44 million to settle allegations under the False Claims Act that it knowingly issued insurance policies that were ineligible under the U.S. Department of Agriculture’s (USDA) federal crop insurance program and falsified documents, the Justice Department announced today. Fireman’s Fund, an Allianz SE subsidiary headquartered in Novato, California, provides personal and commercial property insurance throughout the United States.
“Federal crop insurance provides vital support for farmers suffering crop losses due to natural disasters,” said Acting Assistant Attorney General Benjamin C. Mizer of the Department’s Civil Division. “The Department of Justice will continue aggressively to pursue those who abuse this important program.”
Between 1999 and 2002, Fireman’s Fund operated a crop insurance business and participated in the federal crop insurance program. Under the program, Fireman’s Fund sold and serviced crop insurance policies that were reinsured by the USDA for a portion of the risks.
The United States alleged that between Jan. 1, 1999, and Dec. 31, 2002, Fireman’s Fund knowingly issued federally reinsured crop insurance policies that were ineligible for federal reinsurance. Specifically, Fireman’s Fund allegedly backdated policies, forged farmers’ signatures, accepted late and altered documents, whited-out dates and signatures, and signed documents after relevant deadlines. The policies were issued by Fireman’s Fund offices in Modesto, California; Lambert, Mississippi; Fargo, North Dakota; Lubbock, Texas; Prosser, Washington; and Overland Park, Kansas.
“Today's announcement shows how working alongside our partners in law enforcement, we will ensure the integrity of the crop insurance program for American taxpayers and producers alike,” said Risk Management Agency Administrator Brandon Willis of the USDA.
The settlement resulted from a coordinated investigation by the Justice Department’s Civil Division, the U.S. Attorney’s Office in the Western District of North Carolina and the USDA’s Office of Inspector General, Office of Investigations, Office of General Counsel, and Risk Management Agency, including its Special Investigations Branch. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Federal Jury Convicts Scientists of Wire Fraud, Identity Theft, and ObstructionRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Mahmoud Aldissi (a/k/a, Matt) and Anastassia Bogomolova (a/k/a, Anastasia) guilty of conspiracy to commit wire fraud, wire fraud (7 counts), aggravated identity theft (5 counts), and falsification of records involving a federal investigation (2 counts). Aldissi and Bogomolova each face a maximum penalty of 20 years in federal prison. The sentencing hearing has been set for May 28, 2015.
According to testimony and evidence presented during the month-long trial, through their two companies, Fractal Systems, Inc., and Smart Polymers Research Corp., Aldissi and Bogomolova fraudulently obtained approximately $10.5 million worth of small business research awards from the federal government. In order to be awarded contracts, they submitted proposals using the stolen identities of real people in order to create false endorsements of and for their proposed contracts. In the proposals, they also lied about their facilities, costs, the principal investigator on some of the contracts, and certifications in the proposals.
“The Small Business Innovation Research program is a vital link in stimulating innovative technologies. The conviction of these individuals on all charges including identify theft and falsification of records sends a clear message that fraud in this program will not be tolerated,” said Allison C. Lerner, Inspector General at the National Science Foundation. “I commend the U.S. Attorney’s Office and our investigative partners for their work on this case.”
"This conviction demonstrates the commitment of the Defense Criminal Investigative Service and its law enforcement partners to protect the integrity of all Department of Defense programs," said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS aggressively investigates violators who defraud the DoD procurement process, to preserve precious American taxpayer dollars intended to support our Warfighters."
"These guilty verdicts are another win for our organization," said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. "Although these two defendants tried to cover their tracks with layers of deceptive paperwork, our special agents, in cooperation with other law enforcement agencies, were able to peel back the layers and uncover their scheme to defraud multiple government agencies."
“These defendants stole millions of dollars from the American taxpayer by systematically scheming to take contracting opportunities from legitimate business owners. This audacious scheme included several contracts awarded by the U.S. Environmental Protection Agency (EPA). The EPA’s Office of Inspector General (OIG) will continue to work with our law enforcement partners to aggressively investigate and expose these types of crimes,” said Jerry Polk, Acting Special Agent in Charge, EPA OIG Atlanta Field Office.
Paul Martin, NASA Inspector General, congratulated the prosecution team and noted that, “The NASA Office of Inspector General is committed to ensuring aggressive oversight of taxpayer funds used for scientific research by NASA contractors and grantees.”
This case was investigated by Defense Criminal Investigative Service (DCIS), National Aeronautics and Space Administration’s Office of the Inspector General (NASA-OIG), the Major Procurement Fraud Unit (MPFU) of the United States Army Criminal Investigation Division (Army CID), National Science Foundation’s Office of the Inspector General (NSF-OIG), the Environmental Protection Agency’s Office of the Inspector General (EPA-OIG), the Department of Energy’s Office of the Inspector General (DOE-OIG), and the Department of Homeland Security’s Office of the Inspector General (DHS-OIG). It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Federal Grand Jury Indicts Six for Conspiracy to Use Stolen Credit Card NumbersRead the Press Release
United States Attorney Deborah R. Gilg announced the indictment of six people in a conspiracy to use stolen debit and credit card account numbers. An Indictment, unsealed today, alleges between March and September of 2014, Angel A. Oramas, Jorge E. Aleman Tsuhako, Vilma E. Fernandez, Anyier Paladon, Elain Cartaya and Yusnel Abreu Lamas, agreed to use account numbers of legitimate credit and debit card holders living in various states within the United States, Japan and Spain, that had been stolen and re-encoded onto other plastic cards. The legitimate card holders had possession of their credit and debit cards; however, their account numbers were stolen and allegedly used by the defendants to purchase merchandise, food, gift cards, and gasoline from southeast Nebraska merchants including Shopko, Walmart, Sam’s Club, Home Depot, Hy-Vee Gas, Cenex, and J.C. Penney in Lincoln, Omaha, Grand Island, Beatrice, Crete and Gretna.
Three of the defendants are charged in a second count of the Indictment with possession of 15 or more unauthorized "access devices" - - the stolen debit and credit card account numbers - - on April 21, 2014. A third count of the Indictment alleges the six defendants used the unauthorized account numbers to purchase merchandise valued at $74,772.50.
The Indictment also alleges a 2004 Ford Super Duty Ford and an H&H utility trailer were used to commit the offenses, and should be forfeited to the United States.
The six defendants: Angel Oramas (42) of Columbus, Nebraska; Jorge E. Tsuhako, a/k/a Jorge E. Aleman (44), of Crete, Nebraska; Vilma E. Fernandez (48) of Wilber, Nebraska; Anyier Paladon (38), of Crete, Nebraska; Elain Cartaya (34) of Crete, Nebraska and Yusnel Abreu Lamas (29) of Grand Island, Nebraska, were arrested at various locations on Monday and entered not guilty pleas at their initial appearances before United States Magistrate Judge Cheryl R. Zwart in Lincoln, Nebraska. The possible penalties include up to 10 years in prison, $250,000 fine, and up to three years of supervised release after any prison term.
The case was investigated by the Lincoln Police Department with the assistance of the Federal Bureau of Investigation and United States Marshal's Service.
Eureka Man Pleads Guilty to ‘Washing’ BillsRead the Press Release
WICHITA, KAN. - A Eureka man pleaded guilty Monday to making counterfeit money by “washing” old bills, U.S. Attorney Barry Grissom said.
Rusty D. Banning, 35, Eureka, Kan., pleaded guilty to one count of counterfeiting. In his plea, he admitted that in May 2014 he manufactured counterfeit $50 bills by “washing” genuine bills of smaller denominations and using a computer and printer to print the image of a $50 bill on the “washed” bill.
Sentencing is set for May 27. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000.
Grissom commended the U.S. Secret Service and Assistant U.S. Attorney Alan Metzger for their work on the case.
Employee Charged with Defrauding Memorial Herman Hospital System of Nearly $10 Million in False Invoicing SchemeRead the Press Release
HOUSTON – Kenneth Joseph Wild II, 49, of Katy, has been arrested for allegedly defrauding his employer, Memorial Herman Health Systems (MHHS), of nearly $10 million over a 14-year period, announced United States Attorney Kenneth Magidson.
Wild is expected to make his initial appearance before U.S. Magistrate Judge Mary Milloy at 10 a.m. today, at which time the government is expected to request he be detained pending further criminal proceedings.
The complaint alleges that on or about Feb. 23, 2001, Wild was appointed the manager of Printing and Mail Services, a division within MHHS which outsources the creation of all informational and promotional materials disseminated by MHHS. In this role, Wild had the responsibility for approving invoices submitted for printing services utilized by MHHS and for forwarding those invoices on to accounts payable for payments to be remitted via checks delivered by U.S. mail.
According to the complaint, on or about March 8, 2001, just two weeks after Wild’s promotion to management, an entity named Digital Designs Limited began submitting invoices to MHHS for printing and data conversion services purportedly provided to MHHS. These invoices were submitted by the Printing Services Division and Wild allegedly authorized the payments to Digital Designs. For the next 14 years, the complaint alleges Digital Designs submitted more than 200 invoices to MHHS, varying in frequency and amount each year. The Digital Designs invoices directed all payments to be remitted to a Post Office box in Houston. To date, MHHS has mailed well more than $9 million in payments to Digital Designs at that address, according to the complaint.
On March 11, 2015, MHHS’s chief audit and compliance officer received an anonymous, hand-written letter alleging the Digital Designs account was an anomalous, ghost account and asking for an investigation, according to the allegations. As a result, MHHS swiftly conducted a preliminary review of the account and immediately reached out to law enforcement to report the incident.According to the complaint, the investigation revealed that Wild allegedly opened the Post Office box where the Digital Designs payments were sent and that he had previously obtained an assumed name certificate for “Digital Designs of Texas, P.O. Box 36345, Houston, TX 77236.”
The investigation further revealed that payments remitted to Digital Designs were allegedly deposited into a bank account which was assigned to Wild with a dba of Digital Designs. The complaint further alleges that a preliminary review of the activity in that account indicates no actual business operations, but appears to be a pass-through account for Wild to allegedly disseminate payments to himself to his other bank accounts. The other accounts appear to show a pattern of significant expenditures for Wild’s credit card payments, substantial interior home improvements and enormous cash withdrawals, according to the allegations in the complaint.
If convicted of mail or wire fraud, Wild faces up to up to 20 years in federal prison and a possible $250,000 maximum fine.
The charges are the result of an investigation by U.S. Postal Inspection Service. Assistant U.S. Attorney Jason Varnado is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Eight New Defendants Charged in Racketeering Conspiracy Related to Gang Activity in the Cherry Hill Area of BaltimoreRead the Press Release
Baltimore, Maryland - A federal grand jury has returned a superseding indictment charging eight new defendants with racketeering conspiracy, drug and gun charges related to their gang activities as members and associates of the UDH or “Up Da Hill” organization, which operates in the Cherry Hill section of Baltimore. The superseding indictment, which was returned on March 18, 2015, and unsealed on March 20, 2015, also adds new charges against four defendants charged in the original indictment.
The superseding indictment charges the following defendants:
Steven Jackson, a/k/a Cutty, age 24, of Baltimore;
Asim Benns, a/k/a Seem, age 31, of Baltimore;
Clarence Shipley, a/k/a Mook, age 27, of Baltimore;
Gregory Sykes-Bey, age 21, of Baltimore;
*Elijah Sykes-Bey, a/k/a LaLa, age 20, of Baltimore;
*Cornell Harvey, a/k/a Little Head, age 27, of Baltimore;
*James Scott, a/k/a Mook Day, age 23, of Essex, Maryland;
*Lamont Jones, a/k/a Butt Juice, age 22, of Baltimore;
*Dominic Evans, a/k/a Flatline, age 25, of Baltimore;
*Michael Smith, a/k/a Lil Mikey, age 22, of Baltimore;
*Donte Thornton, a/k/a Tay, age 30, of Baltimore; and
*Alonzo Clea, a/k/a Zo, age 25, of Baltimore.
* - indicates new defendant charged in this indictment.
The superseding indictment 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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
All 12 defendants are charged in a racketeering conspiracy as well as in a conspiracy to distribute heroin, powder and crack cocaine, and marijuana as members of the “UDH” organization, which operates in the area of Cherry Hill known as “Up the Hill” or “Up da Hill.”
According to the superseding indictment, the members of UDH were part of a racketeering enterprise and protected their power, territory and profits through the use of violence, threats of violence, intimidation, robbery, narcotics trafficking and obstruction of justice. The superseding indictment alleges that UDH members have also committed murders, attempted murders, assaults, carjackings, obstruction of justice and robberies. Specifically, the superseding indictment alleges that, beginning in 2004, UDH members committed six murders of rival gang members and/or drug dealers, and shot nine other individuals. In addition, the superseding indictment alleges that members of UDH committed home invasion, street and bank robberies in order to fund their narcotics activities.
All 12 defendants face a maximum sentence of life in prison. All are detained pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation and thanked the FBI, Baltimore County Police Department, Anne Arundel County Police Department, and Baltimore City Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Andrea L. Smith, Seema Mittal, and Patricia C. McLane, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Eight Arrested for Role in Timeshare Telemarketing Fraud Scheme That Targeted Individuals Age 55 and OlderRead the Press Release
www.postalinspectorsurvey.com/haffar
DALLAS — Eight residents of Florida were arrested or self-surrendered over the past few days on charges outlined in a federal indictment returned by a grand jury in Dallas last month and unsealed last week. The allegations in the indictment stem from the operation of a telemarketing fraud scheme that targeted persons over the age of 55. The announcement was made today by John Parker, Acting U.S. Attorney for the Northern District of Texas.
The eight-count indictment charges each of the below-listed defendants with one count of conspiracy to commit mail fraud, wire fraud, bank fraud and telemarketing fraud and seven substantive counts of mail fraud, telemarketing fraud, and aiding and abetting. Each defendant made his initial appearance last week before various U.S. Magistrate Judges in the Southern and Middle Districts of Florida. The eight defendants who appeared were released on various bond conditions, and most were ordered to appear for arraignment in the Northern District of Texas on March 30, 2015, at 2:00 p.m.
Max Joseph Chilson, 36, of Lake Mary, Florida.
Gunner Dell Jenkins, 36, of Orlando, Florida.
Antonio Enrique Martinez, 43, of Kissimmee, Florida.
Richard Mendez, 44, of Kissimmee, Florida.
Victor Sanchez, 45, of Hollywood, Florida.
Angelina Laboy Smith, 37, of Orlando, Florida.
Harold Eugene Smith, a/k/a H.E. Smith, 72, of Kissimmee, Florida.
Jonathon Edward Warren, 32, of Winter Garden, Florida.
The indictment alleges that from at least March 2009 to March 2011, the above defendants conspired together and with others to commit mail, wire, bank and telemarketing fraud in connection with a telemarketing scheme that targeted and victimized persons over the age of 55 in the U.S. and in Canada. As part of the elaborate scheme, the conspirators made unsolicited phone calls to owners of resort timeshare properties to induce them into paying fees associated with the bogus sale of their property. They misrepresented the existence of a buyer for their timeshare and solicited money from them to facilitate the sale. They solicited the timeshare owners to enter into agreements to sell their timeshares and pay for alleged “closing costs” with their credit cards, personal checks, bank checks, or through electronic check conversion.
As part of the conspiracy, the defendants also instituted a bogus telephone verification process to make follow-up phone calls to the targeted timeshare owners to give them the false impression they were dealing with entities that would protect their money and property, and to trick them into making recorded statements that no sale had been promised by the telemarketers.
Further, the defendants falsely represented their companies were global leaders in connecting timeshares to buyers, sellers, and renters; their companies were full-service timeshare resale companies and vacation rental agencies with more than 30 years of experience in timeshares; bona fide buyers were interested in purchasing the owner’s properties and offers exceeded the original amount paid for the properties; buyers had already paid money into an escrow account, been approved by a lender, and were ready to close; the timeshare owner would receive all the funds from the purchase within 45 to 90 days; and that the timeshare owners must pay a one-time fee to cover the title search and other closing costs before the sale could close.
After obtaining money from the timeshare owners, the defendants, in order to lull the timeshare owners and cause them to not question, investigate or report the status of the transaction, made additional false and fraudulent statements to the timeshare owners, including advising them they were protected under established telemarketing laws and could cancel their contract and request a refund by mailing written notification within seven days of receiving the contract and advising them they could phone or send correspondence to Resorts Condos Management in Irving, Texas, — which, unbeknownst to the owners was in fact, a boiler room.
An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, the conspiracy count carries a maximum statutory penalty of 30 years in federal prison, a mandatory 10-year penalty and a $1 million fine. Each of the seven remaining substantive counts carries a maximum statutory penalty of 20 years in federal prison, a mandatory 10-year penalty and up to a $250,000 fine. Restitution could also be ordered.
Information for Timeshare Owners Affected by the Scheme:
1. If you believe you were the victim of criminal fraud committed by any of the defendants, possibly using the below company names, please go to www.postalinspectorsurvey.com/haffar and complete the questionnaire:
Resorts Condos Management; Timeshare Goldline; JAMS Management; Vision Ventures Inc.; Timeshare Services Today; Vacation Equity Marketing, Inc.; Maximum Properties; Universal Processing Services of Wisconsin, LLC, also known as Newtek Merchant Solutions; HES Merchant Services, Inc.; Interval Equity Marketing, Inc.; Vacations And Resorts; and
Visionary Investments, LLC.The information you provide through the questionnaire regarding your experience may be helpful in the criminal investigation and prosecution of this case. A law enforcement agent may contact you with additional questions or to request documents you may have received or submitted during your dealings with these businesses. To access the questionnaire, please go to www.postalinspectorsurvey.com/haffar and input the user name timeshare and the password uspis.
Please note that submitting the questionnaire is NOT a substitute for consulting with your own attorney to determine what actions and remedies are available to you through civil litigation or other federal or state agencies.
2. On or after March 30, 2015, you may access the websites for the U.S. Attorney’s Office for the Northern District of Texas http://www.justice.gov/usao/txn/to obtain more information on the case or the court proceedings.
3. If you have any questions related to this matter that are not addressed at the above website, you may contact the government on or after March 30, 2015, at the e-mail address [email protected].
The U.S. Postal Inspection Service is investigating this fraud. The Orlando Police Department provided substantial assistance in the investigation and apprehension of the defendants. Assistant U.S. Attorney C.S. Heath is prosecuting.
Detroit-Area Business Owners Plead Guilty to Filing a False Tax ReturnRead the Press Release
Two West Bloomfield, Michigan, residents and Detroit-area business owners pleaded guilty today in the U.S. District Court for the Eastern District of Michigan in Detroit to one count of filing a false federal income tax return, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the court filings, Todd and Stephen Schlussel each filed a false 2008 tax return that failed to report a significant amount of income. The unreported income was from several Detroit-area businesses that they operated and controlled, including Phoenix Real Estate Company, Phoenix Preferred Properties LLC, Phoenix Office Plaza-II LLC, the Lumber Company and FS Investments LLC.
U.S. District Judge Arthur J. Tarnow scheduled sentencing for Sept. 28. Both face a statutory maximum sentence of three years in prison and a fine of up to $250,000.
Acting Assistant Attorney General Ciraolo commended special agents of IRS–Criminal Investigation, who investigated the case, and Trial Attorneys Mark McDonald and Christopher O’Donnell of the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of Michigan for their assistance on the case.
Department of Justice Releases Report on Philadelphia Police Department's Use of Deadly ForceRead the Press Release
Office of Community Oriented Policing Services Releases 48 Findings and 91 Recommendations to Implement Best Practices at the Philadelphia Police Department
Note: The report, Collaborative Reform Initiative—An Assessment of Deadly Force in the Philadelphia Police Department can be found HERE on the COPS Office website.
The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced the release of its initial report on the Philadelphia Police Department’s use of deadly force policies and practices.
In 2013, in response to an increase in officer-involved shootings, Philadelphia Police Commissioner Charles Ramsey requested technical assistance from the COPS Office. Launched in November 2013, the Collaborative Reform Initiative in Philadelphia focuses on the use of deadly force over a seven-year period.
“I applaud Commissioner Ramsey for stepping forward to take a more critical look at the use of force policies and practices within the Philadelphia Police Department,” said COPS Office Director Ronald Davis. “Through enhanced training, improved transparency of deadly force investigations, and strengthened use of force review processes, I am confident the Philadelphia Police Department will see great improvement to its law enforcement policies. The recommendations presented today benefit not only this department, but can serve as a guide for other police agencies across the country facing similar challenges.”
The COPS Office’s training and technical assistance provider for the assessment, CNA, reviewed hundreds of departmental policies, manuals and training plans; conducted 164 interviews with community members and department civilian and sworn personnel; facilitated focus groups with city and department stakeholders; and directly observed operations, including the use of force review board hearings of 20 officer-involved shooting incidents.
Through its 48 findings, the assessment identifies serious deficiencies in the department’s use of force policies and training, including a failure to maintain a certified field training program; deficient, inconsistent supervision and operational control of officer-involved shooting investigations and crime scenes; and oversight and accountability practices in need of improvement, the most notable being the need for the department to fully cooperate with the Police Advisory Commission.
To address these issues, the report prescribes 91 recommendations to help the department improve with respect to the use of force and implement industry best practices. The COPS Office will work with the Philadelphia Police Department over the next 18 months to help them implement these recommendations and will provide two progress reports during this time.
The report, Collaborative Reform Initiative—An Assessment of Deadly Force in the Philadelphia Police Department can be found on the COPS Office website.
The assessment was administered as part of the COPS Office's Collaborative Reform Initiative for Technical Assistance, designed to provide technical assistance to agencies facing significant law enforcement-related issues. Using subject matter experts, interviews and direct observations, as well as conducting extensive research and analysis, the COPS Office assists law enforcement agencies with enhancing and improving their policies and procedures, their operating systems and their professional culture. The COPS Office can issue a series of recommendations and be instrumental in assisting agencies with the implementation of those recommendations.
The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has awarded more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 126,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about COPS, please visit the COPS Office website.
Convicted felon pleads guilty to unlawfully possessing a firearmRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a convicted felon from the Washington, D.C. area pleaded guilty today in federal court in Charleston to unlawfully possessing a firearm. Sean Anthony Nalle, 30, of Washington, D.C. entered a guilty plea to pawning a semiautomatic pistol at Carl’s Pawn Shop on Dudley Avenue in Parkersburg, West Virginia. Nalle was prohibited from possessing the firearm because of prior federal drug trafficking convictions in the District of Columbia in 2006 and 2009.
Nalle faces up to ten years in federal prison, and is scheduled to be sentenced on June 23, 2015.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Parkersburg Police Department conducted the investigation. Assistant United States Attorney Joshua C. Hanks is in charge of the prosecution.
The case is part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Convicted Felons Charged with Unlawfully Possessing FirearmsRead the Press Release
PANAMA CITY, FLORIDA – A federal grand jury returned a 13-count indictment charging Linda M. Taylor, 35, and Donnie N. Whitfield, 24, both of Panama City, with possessing firearms as convicted felons. The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment alleges that, on six different occasions between December 2014 and February 2015, Taylor possessed a Smith and Wesson .40 caliber pistol, a Phoenix Arms .22 caliber pistol, a Lorcin .380 caliber pistol, a Maverick 12-gauge shotgun, a Sig Sauer 9 millimeter pistol, and ammunition. The indictment further alleges that the Smith and Wesson .40 caliber pistol and the Phoenix Arms .22 caliber pistol were stolen and sold. Taylor is also charged with trafficking in methamphetamine, and Whitfield is charged with possessing the same Maverick 12-gauge shotgun. The arraignment and initial appearance are scheduled for 1:30 p.m. today before Magistrate Judge Larry A. Bodiford at the U.S. Courthouse, 30 West Government Street, Panama City, Florida.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Gayle E. Littleton.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Collin County Man Sentenced to 151 Months for Multimillion-dollarRead the Press Release
SHERMAN, Texas – A 35-year-old Allen, Texas man has been sentenced to federal prison for mail fraud violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Marcus Brian Curry pleaded guilty on July 29, 2014 to mail fraud and was sentenced to 151 months in federal prison today by U.S. District Judge Amos L. Mazzant. A hearing to determine restitution will be held in approximately 90 days. A date for the hearing has not been set.
According to information presented in court, from June 2006 to February 2014, Curry, the owner and operator of South Coast Group, L.P., a real estate company located in Allen, Texas, devised a scheme to defraud certain homeowners and buyers. To facilitate the scheme, Curry solicited distressed homeowners who were facing possible foreclosure through mail advertisements and his website, www .soldthismonth.com, and convinced them they could protect their credit by transferring the title to their homes to him with the promise he would assume responsibility for making the mortgage payments. Curry then solicited buyers with below average credit through his website, www .allcreditisokay.com, and would then sell the property to a new buyer representing that Curry was the true owner of the property, omitting that there was still an original lien holder, and in most cases, not paying the mortgage payments to the original lien holder as promised. In order to conceal the existing lien from the buyer, Curry financed the mortgage himself, set up “land trusts” pertaining to each transaction, designated himself as the “trustee,” and had the new buyer send payments to a private mail box under his control with the understanding that Curry, as trustee, would then make the mortgage payments.
After approximately six to ten months the buyer learned that the mortgage payments were delinquent pursuant to (1) either a delinquent notice from the true lending institution that held the note on the property or (2) from the original homeowner after the original owner had been contacted by the true lending institution. In turn, the lending institution often made a demand for payment-in-full for the remaining balance of the mortgage – despite the buyer’s submission of monthly payments to Curry. When the buyer was unable to make the full payment to the lending institution, the lending institution initiated the foreclosure process and the buyer was often evicted.
As part of the fraud scheme, more than 50 homeowners and buyers relied on Curry’s false material representations. As a result of his fraudulent actions, Curry personally gained $1,574,900, and caused a loss to homeowners, buyers and lending institutions of approximately $2,362,350.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Eason.
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Chicago Man Pleads Guilty to Heroin ChargesRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Dominque A. Burwell, 21, of Chicago, Illinois, pled guilty today to Conspiracy to Distribute Heroin from September 2012 through October 2014 in Marion County (Count 1); and Distribution of Heroin on July 29, 2014, in Marion County (Count 7).
Count 1 carries a maximum penalty of not less than 5 years’ in prison, up to 40 years’ in prison, a $5 million fine, and at least 4 years’ supervised release. Count 7 carries a maximum penalty of 20 years’ in prison, a $1 million fine, and not less than 3 years’ supervised release. Both counts require an assessment of $100.
According to court documents, Burwell agreed with his co-defendants, a cousin and a friend, to distribute heroin for profit in Centralia, Marion County, Illinois. Burwell and the others shared a cell phone which customers would contact to order heroin. Burwell often answered the shared cell phone, took the order, and then sent the others to complete the transaction with the customer at whatever location Burwell designated.
Information leading to the charges against Burwell was obtained in an investigation conducted by the FBI, the Marion County Sheriff’s Office, and the Clinton County Sheriff’s Department. The case is being handled by Assistant United States Attorney Kit Morrissey.
California Man Sentenced to Federal Prison for Multi-State Bank Fraud SchemeRead the Press Release
ALBUQUERQUE – Kevin Cohn, 31, of Rialta, Calif., was sentenced this morning to 33 months followed by three years of supervised release for his conspiracy to commit bank fraud conviction. Cohn was also ordered to pay $30,514.16 in restitution.
Cohn’s co-defendants, Denny Smith, 51, of Hesperia, Calif., and Michael Anthony Bjornethun, 40, of Riverside, Calif., were charged with bank fraud offenses in a criminal complaint filed on Jan. 13, 2014. The two subsequently were indicted on Jan. 22, 2014, and charged with conspiracy to commit bank fraud and five counts of bank fraud.
Cohn was added as a defendant to the case in a 12-count superseding indictment filed on March 26, 2014. Count 1 of the indictment charged Smith and Cohn with conspiracy to commit bank fraud and Count 2 charged Smith and Bjornethun with the same offense. Counts 3 through 12 charged the three men with individual bank fraud offenses. According to the superseding indictment and other court filings, Cohn, Smith and Bjornethun perpetuated a scheme in Jan. 2014, to defraud a bank by using counterfeit debit cards to purchase items from U.S. Post Offices in New Mexico, Arizona and Texas.
On Dec. 9, 2014, Cohn pled guilty to Count 1 of the superseding indictment charging him with conspiracy to commit bank fraud. In entering his guilty plea, Cohn admitted that in Jan. 2014, he traveled with Smith from California to Arizona, New Mexico and Texas, where they visited various post offices and purchased stamps, gift cards and other items with counterfeit debit cards. Cohn admitted that the purpose of the trip was to commit fraud. In his plea agreement, Cohn admitted that he and his co-conspirators perpetuated fraud in the amount of $30,505.52 during the life of their bank fraud scheme.
Cohn’s co-defendants previously entered guilty pleas and have been sentenced. Smith entered a guilty plea on June 24, 2014, to Counts 1 and 2 of the superseding indictment. He was sentenced on Aug. 25, 2014, to 27 months in federal prison followed by three years of supervised release. Bjornethun plead guilty to the original indictment without the benefit of a plea agreement on March 19, 2014. On June 30, 2014, he was sentenced to 172 days of time served followed by two years of supervised release.
This case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistants U.S. Attorney Samuel A. Hurtado and C. Paige Messec.
California Man Indicted for Attempted Armed Robbery of Humboldt BancorpSouth and Assaulting A Bank EmployeeRead the Press Release
Jackson, TN – A former California resident has been charged in a federal indictment that accuses him of attempted armed robbery of BancorpSouth in Humboldt, TN, and use of a dangerous weapon.
Dominic Williams, 39, recently of Humboldt, TN, was named today in a three-count indictment charging one count of using a dangerous weapon; one count attempted bank robbery; and one count of being a felon in possession of a firearm.
According to court documents, at approximately 7:00 a.m. on March 18, 2015, Williams, who had recently relocated to Humboldt, TN from California, hid in the carport of a bank employee’s residence. Williams approached the bank employee at gunpoint when she was about to get into her car and drive to work. He then forced the victim to drive to BancorpSouth and open the exterior doors of the bank.
Once inside the bank, Williams attempted to force the victim at gunpoint to open the bank safe, but she was unable to do so. He then shot the victim and fled through a back window of the bank.
Williams is scheduled for a detention hearing at 10:00 a.m. today. If Williams is convicted, he will face a statutory maximum sentence of life in federal prison.
This case was investigated by the Humboldt Police Department; Gibson County Sheriff’s Office; West Tennessee Violent Crime and Drug Task Force (28th, 29th, 30th Judicial Districts; and the Federal Bureau of Investigation – Memphis Jackson Resident Agency. The government’s case is being prosecuted by Assistant U.S. Attorney Matthew Wilson.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Brighton Man Charged in Child Pornography CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Joseph Lamica, 25, of Brighton, NY, was arrested and charged by criminal complaint with attempted production of child pornography and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a fine of $250,000.“Thanks to a parent’s willingness to inquire further into conduct which seemed questionable, this case was brought to a rapid conclusion,” said U.S. Attorney Hochul. “The case further serves as a reminder of how important it is for parents to exercise caution when entrusting their children to strangers.”
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, Lamica was a babysitter who advertised his services on Care.com and Craigslist.com. A family the defendant was working for discovered that Lamica was engaging in inappropriate behavior with nine-year-old son and terminated the babysitting contract. Thereafter, the defendant attempted to approach the boy at school.
The Monroe County Sheriff’s Office obtained a search warrant and searched Lamica’s residence. Deputies found materials and notebooks with writings expressing the defendant’s interest in young boys. Another search warrant was obtained for Lamica’s digital media hardware which contained images of child pornography, and a video of another minor the defendant babysat in 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint is the culmination of an investigation on the part of the Federal Bureau of Investigation Child Exploitation Task Force, and the Monroe County Sheriff’s Office, under the direction of Sheriff Patrick O’Flynn.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Baltimore Felon Sentenced to 10 Years in Prison for Heroin Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Anthony Miles, a/k/a “Bigs,” and “Fat Boy,” age 30, of Baltimore, late on March 20, 2015, to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea agreement, as part of an investigation into a drug trafficking organization that operated primarily in Baltimore City and Baltimore County, Miles was intercepted in text messages, telephone calls and other recordings arranging heroin transactions. On numerous occasions a cooperating witness drove Miles to locations in the Baltimore area to meet co-conspirators. At the meetings, Miles delivered heroin to the co-conspirators and collected payment for the drugs. For example on February 15, 2013, after delivering heroin to at least three co-conspirators and collecting money, Miles reportedly raised up a large stack of cash, holding it with both hands, and screamed that he just made $20,000 in an hour.
Over the course of the conspiracy Miles was responsible for the distribution of more than one kilogram of heroin. Miles’ participation in the heroin conspiracy violated the conditions of his supervised release for a previous federal drug conviction.
A total of 12 defendants, including Miles, Enzo Blanks, a/k/a “Zo,” age 29, and Marlow Bates, a/k/a “Low,” age 33, both of Baltimore, have been convicted for the heroin distribution conspiracy. Blanks and Bates were also sentenced to 10 years in prison for their roles in the conspiracy.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore Police Department and Baltimore County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Arrest Made in Investigation of Explosive Device Left in Vickery Creek ParkRead the Press Release
ATLANTA - Michael C. Sibley made his initial appearance on federal charges that he intentionally conveyed false information relating to the unlawful use of an explosive device, and attempting to damage federal property by use of an explosive device, in connection with a device found in Vickery Creek Park in Roswell, Georgia, in November, 2014. Sibley was arrested by the FBI pursuant to a criminal complaint on March 21, 2015.
“The defendant allegedly placed a bag containing what appeared to be pipe bombs in Vickery Creek Park. This arrest should reassure the community that serious crimes like this will be investigated thoroughly and all leads followed to identify the perpetrator,” said Acting U. S. Attorney John Horn.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Reports of backpacks containing possible explosive devices are obviously taken seriously by the FBI and its Joint Terrorism Task Force (JTTF). The law enforcement response by Roswell Police, the FBI and its JTTF, as well as a significant response by area Explosives Ordnance Disposal units, was not only time consuming but costly to the taxpayers.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: On November 4, 2014, a citizen reported the presence of a suspicious package in Vickery Creek Park, located in Roswell, Georgia. That day, Roswell, Georgia, police officers found a backpack along a trail in the park that contained two partially assembled improvised explosive devices, also referred to as pipe bombs. The backpack also contained a Falcons schedule, a MARTA schedule and other papers, books and clothing.
On March 20, 2015, FBI agents identified Sibley as the individual who placed the device in the park and arrested him on a criminal complaint. The complaint charges Sibley with 1) intentionally conveying false information under circumstances where such information reasonably indicated that a violation of a federal statute prohibiting the unlawful use of an explosive device would take place, in violation of 18 U.S.C. Section 1038; and 2) attempting to damage federal property by use of an explosive device, in violation of 18 U.S.C. Section 844(f)(1).
Michael C. Sibley, 67, of Marietta, Georgia, appeared today before United States Magistrate Judge Linda T. Walker.
Members of the public are reminded that the Criminal Complaint only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Tracia M. King is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Appellate Court Affirms 50-Year Sentence for Donald J. Jones, IIIRead the Press Release
PROVIDENCE, R.I. – The United States Court of Appeals For the First Circuit in Boston today affirmed the sentence of 50-years in federal prison imposed on Donald J. Jones, III, on charges of interstate travel to engage in illicit sexual acts with a minor, aggravated sexual assault, enticement of a minor, and distribution of child pornography. Jones was convicted by a jury at trial in May 2012. U.S. District Court Chief Judge William E. Smith imposed a sentence of 50-years in prison on September 11, 2014.
Today’s Appellate Court decision, the government’s motion for summary disposition and press releases issued at the time of Jones’ conviction and sentencing hearing are attached.
Assistant U.S. Attorney Donald C. Lockhart represented the Government in this matter before the United States Court of Appeals For the First Circuit.
The case was prosecuted in U.S. District Court in Providence by First Assistant United States Attorney Stephen G. Dambruch and Assistant U.S. Attorney Leslie J. Kane.
No. 14-2037
UNITED STATES, Appellee, v.
DONALD J. JONES, III, a/k/a Don Juan, Defendant, Appellant.
Before
Torruella, Howard and Barron, Circuit Judges.
__________________
Entered: March 23, 2015Appellant Donald J. Jones, III, challenges his 50-year sentence for six convictions stemming from his attempt to engage in a sex act with a child across state lines and his possession and interstate transport of child pornography. Having thoroughly reviewed relevant portions of the record and each of Jones' arguments, we conclude that the district court's sentencing methodology was procedurally and substantively sound and that the district court did not abuse its discretion by imposing the sentence it did. See United States v. Politano, 522 F.3d 69, 72-73 (1st Cir. 2008) (setting out standard of review and general principles). Accordingly, the government's motion for summary disposition is , and the judgment of the district court is .
By the Court: /s/ Margaret Carter, Clerk
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Anchorage Man Convicted of Child Exploitation ChargesRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was convicted on Monday, March 23, 2015, in a case involving an American exploiting children in Cambodia.
A federal jury found Jason Jayavarman guilty of two counts: attempted sexual exploitation of children, in violation of 18 U.S.C. 2251(c), and attempted travel with intent to engage in illicit sexual conduct in a foreign place, in violation of 18 U.S.C. 2423(b).
Jayavarman, 45, was tried before U.S. District Court Judge Sharon L. Gleason in Anchorage. According to Assistant U.S. Attorney Audrey J. Renschen and U.S. Department of Justice, Child Exploitation and Obscenity Section, Trial Attorney Ravi Sinha, who prosecuted the case, the evidence presented at trial established that Jayavarman produced multiple videos of child pornography in Cambodia, between 2010 and 2013, which he then transported to the United States.
The evidence also established that, at the time of his arrest, Jayavarman planned a trip to Cambodia with the intent that, upon arrival, he and another individual, later revealed to be an undercover FBI agent, would engage in commercial sex acts with children as young as 12.
Jayavarman’s child exploitation activities came to light following a concerned citizen’s anonymous tip to Crime Stoppers. Jayavarman remains in custody pending sentencing. Based on the charges of conviction, Jayavarman faces a mandatory minimum of 15 years and a maximum of 60 years in prison, as well as lifetime registration as a sex offender.
United States Attorney Karen L. Loeffler noted, “These verdicts are the result of our committed efforts, working with all of our law enforcement partners, to fight exploitation of children, wherever it occurs, with all resources at our disposal and to prosecute those who prey on children to the fullest extent of the law".
Ms. Loeffler commends the Federal Bureau of Investigation, the Anchorage Police Department, and Crime Stoppers for the investigation leading to the successful prosecution of Jayavarman.
4 Convicted in Sex Trafficking of Minors CaseRead the Press Release
HOUSTON – Four people have been convicted for their roles in a sex trafficking of minors conspiracy in which young females were forced and/or coerced to engaged in commercial sex acts, announced U.S. Attorney Kenneth Magidson.
Emanuel Dandre Wade, 25, pleaded guilty to two counts of sex trafficking of minors. Charmaine Henderson, 26, and Ashley Shawntal Williams, 22, both entered guilty pleas to conspiracy to commit sex trafficking, while Henderson also pleaded to one count of sex trafficking of minors. Darquesha Perry, 27, entered a plea of guilty to misprision of a felony.
Wade and Henderson claimed to own a modeling agency, which, in reality, was a front for prostitution. Wade admitted he coerced minor females to engage in prostitution under the initial guise of “modeling.” He took pictures of the minors and advertised their services on websites.
One of the girls was continually beaten by Wade and forced to continue to prostitute. She indicated that on one occasion, she was beaten for simply giving Wade the wrong number of cigarettes. She was eventually recovered by law enforcement.
After the victim’s rescue, Williams contacted her and lied to her, stating she was no longer associating with Wade and to come “hang out” with her. She then took her to a hotel room where Wade was waiting. The victim claimed Wade beat her again, but was eventually able to contact her mother who took her to a hospital to receive treatment.
Wade had also reached out to another victim via a social networking site under the guise of looking for a model. He eventually coerced her into prostitution and kept all of the monies she earned.
Williams admitted to transporting victims to “dates” in her vehicle and had rented motel rooms for the commercial sex acts. She knew the women were minors.
Perry had also provided transportation and allowed Wade to move into her apartment while running his criminal enterprise.
United States District Court Judge Gray Miller accepted the pleas today and has set sentencing for July 10, 2015. At that time, Wade, Henderson and Williams each face up to life in federal prison for each of their counts of conviction. Perry faces up to three years in prison.
Wade and Henderson are in custody, while Perry and Williams remain on release pending their sentencing hearings.
The charges are the result of an investigation conducted by the Houston FBI Innocence Lost Task Force, which includes personnel from the FBI, Houston Police Department and the Harris County Sheriff’s Office. Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
20 March 2015
Week in Review –south BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Jason C. Roames, 35, of Michigan City, Indiana pled guilty to the felony offense of possession of child pornography. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the FBI. Sentencing has been set for June 28, 2015. This case is being prosecuted by Assistant United States Attorney John Maciejczyk.
- Ewing Teal, 26, of South Bend, Indiana pled guilty to the felony offense of possession with intent to distribute cocaine base (crack). The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by DEA. Sentencing has been set for June 24, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Jordan Gutkowski, 28, of Michigan City, Indiana pled guilty to the felony offense of conspiracy to distribute heroin. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by DEA. Sentencing has been set for June 25, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Miguel Gregory Vera, 23, of South Bend, Indiana pled guilty to the felony offenses of false statements on acquisition of a firearm and drug user in possession of firearms. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for June 17, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Justin Bowles, 25, of South Bend, Indiana was sentenced to 60 months imprisonment with 4 years supervised release after pleading guilty to the felony offense of possession with intent to distribute cocaine base over 28 grams. According to documents filed in this case, on April 10, 2014, in a residence located in South Bend, Bowles possessed a package containing a white rocklike substance that was cocaine base (crack). It was Bowles intent to sell this substance. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review –hammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Keandria C. Jones, 25, of Gary, Indiana pled guilty to the felony offense of making a false statement in connection with the acquisition of a firearm in violation of 18 U.S.C ' 922(a)(g). This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for June 25, 2015. This case is being prosecuted by Assistant United States Attorney Nicholas J. Padilla
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Robinson Morales, 37, of East Chicago, Indiana, was sentenced to 24 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on March 15, 2013, Morales possessed a .22 caliber pistol after having been convicted of crime punishable by imprisonment exceeding one year. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Nicholas J. Padilla.
- Jose L. Ruiz-Medina, 49, of Hammond, Indiana was sentenced to time served and will face immigration removal proceedings after pleading guilty to the felony offense of illegal re-entry. According to documents filed in this case, the defendant had been previously deported to Mexico from the United States after having been convicted of a felony offense in the State of California. On or about October 2014, the defendant, a citizen of Mexico, illegally re-entered the United States and eluded and evaded immigration officials until found and arrested by law enforcement. This case was the result of an investigation by the Homeland Security Investigations. This case was prosecuted by Assistant United States Attorney Randall Stewart.
Week in Review –fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Ashley Taylor, 26, of Fort Wayne, Indiana was sentenced to 1 year probation and ordered to pay $370.33 in restitution after pleading guilty to the felony offense of theft or receipt of stolen mail matter. According to documents filed in this case, on or about July 23, 2014, Taylor unlawfully possessed mail matter which had been stolen. Postal customers in the 46845 zip code had filed numerous complaints with the Allen County Sherriff’s Department and the United States Postal Inspector about missing or stolen mail, or about finding open, discarded mail in their area. This case was the result of an investigation by the United States Postal Inspection Service and the Allen County Police Department. This case was prosecuted by Assistant United States Attorneys Tina L. Nommay and Nathaniel C. Henson.
- Pedro Castaneda, Jr., 41, of Fort Wayne, Indiana was sentenced to 57 months imprisonment with 1 year supervised release and ordered to forfeit $1,000, after pleading guilty to the felony offense of conspiracy to distribute and possess with intent to distribute cocaine. According to documents filed in this case, from on or about November 8, 2010, and continuing to on or about April 13, 2011, Castaneda knowingly and intentionally conspired to distribute and possess with intent to distribute 5 kilograms or more of cocaine. This case was the result of an investigation by the Federal Bureau of Investigation, Fort Wayne Safe Streets Task Force, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force and the New Haven Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
U.S. Attorney to Moderate Panel of Experts on Cybercrime and SecurityRead the Press Release
BIRMINGHAM -- U.S. Attorney Joyce White Vance on Monday will moderate a panel of cyber security experts discussing cybercrime and what businesses can do to minimize the threat of intrusion into their computer systems.
In conjunction with the non-profit technology association, TechBirmingham, the U.S. Attorney's Office is presenting the Panel on Cybercrime and Cyber Prevention: The Partnership between Government and Business. The event will be from 8:30 a.m. to 11 a.m. in the Alabama Power Headquarters Auditorium, 600 18th Street North, in Birmingham.
The panelists include:
Lt. Gen. Ronald L. Burgess Jr., who retired from the U.S. Army as director of the Defense Intelligence Agency and now works for Auburn University as senior counsel for national security programs, cyber programs and military affairs; David H. Laufmann, chief of the Counterespionage Section in the National Security Division of the Department of Justice;
Jenny Durkan, former U.S. Attorney in Seattle, who ran the cyber program for U.S. Attorneys nationwide and is now global chair of the Cyber Law and Privacy Group;
Michele Cantley, who recently retired as chief information security officer at Regions Bank.
The panel will address the nature of cyber threats, possible prevention and mitigation steps, and best practices for working with federal law enforcement.
"Cybercrime is becoming pervasive and it is important to build awareness and plan in advance of an event," Vance said. "This is true, despite the nature or size of your organization, if you have information on your system you wish to protect," she said.
The event is free to attend. For more information and to register visit: techbirmingham.com/events/
U.S. Attorney Fardon Hosts Second Roundtable to Discuss Building Community TrustRead the Press Release
CHICAGO — Members of the community including religious, civic, and business leaders, youth leaders, and top law enforcement met yesterday to continue discussions around building community trust in the neighborhoods of Chicago. This is the second of such meetings, hosted by U.S. Attorney Zachary T. Fardon, and is a follow up to the original roundtable held in December 2014 with United States Attorney General Eric Holder. Among those participating in today’s meeting were Ronald Davis, Executive Director of President Obama’s Task Force on 21st Century Policy, Cook County State’s Attorney Anita Alvarez, Chicago Police Superintendent Garry McCarthy, and Deputy Chief Janey Rountree of the Mayor’s office.
The Department of Justice has made the issue of community policing and trust a top priority. Yesterday’s roundtable facilitated a candid dialogue about policing and trust issues, and focused on next steps for improving relationships between law enforcement and the community.
Mr. Davis, who is also Director of the Department of Justice’s Community Oriented Policing Services in Washington D.C. (known as “COPS”) led a discussion about the recently issued Interim Report from the President's Task Force on 21st Century Policing. In that report, the Task Force seeks to identify best practices and makes recommendations to the President on how policing practices can promote effective crime reduction while building public trust. The Task Force specifically examined, among other issues, how to foster strong, collaborative relationships between local law enforcement and the communities they protect.
As part of their ongoing dialogue, yesterday’s roundtable participants shared several important ideas for strengthening the relationship between law enforcement and our communities, and they committed to continue the dialogue going forward.
Two sentenced for manufacturing methamphetamine in Gilmer CountyRead the Press Release
CLARKSBURG, WEST VIRGINIA – James L. Ash, 44, of Glenville, West Virginia, and Sarah Snyder, 37, of Spencer, West Virginia, were sentenced today for manufacturing methamphetamine in Gilmer County, West Virginia, United States Attorney William J. Ihlenfeld, II, announced.
Ash pled guilty in November 2014 to one count of "Aiding and Abetting Manufacture of Methamphetamine.” He was sentenced today to 63 months in prison.
Snyder admitted that she utilized her residence to produce methamphetamine when she pled guilty in November 2014 to one count of “Maintaining a Drug-Involved Premises.” She was sentenced today to 57 months in prison.
Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The West Virginia State Police led the investigation.
U.S. District Judge Irene M. Keeley presided.
Two Twin Cities’ Restauranteurs Plead Guilty to Hiring Undocumented WorkersRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty pleas of MING GUO, 46, owner of two Twin Cities restaurants, both named Hibachi Grill and Supreme Buffet, and BIJIAN WENG, a/k/a “Wilson,” 28, manager of the restaurants, for employing unlawful aliens. GUO and WENG were charged on January 26, 2015, with one count each of Knowingly Hiring Ten or More Unlawful Aliens. GUO and WENG appeared earlier today in U.S. District Court in St. Paul, Minn.
“Undocumented workers are vulnerable to exploitation,” said Assistant U.S. Attorney Laura Provinzino. “Those who intentionally employ undocumented immigrants allow for these workers to be taken advantage of. Disrupting labor trafficking and punishing those who don’t follow the law is critical to ensure the safety of both legal and unauthorized workers.”
“The guilty pleas today should send a strong message to the Minnesota business community – companies that knowingly employ unauthorized aliens subject themselves to investigation and they will be punished accordingly.” said Special Agent in Charge J. Michael Netherland, of HSI St. Paul. “Our goal is to protect job opportunities for the nation’s legal workers and to level the playing field for those businesses that play by the rules.”
According to the defendants’ guilty plea and documents filed in court, from September 30, 2013 through September 30, 2014, GUO and WENG knowingly hired and employed at least 17 individuals who were not authorized to be employed or lawfully admitted for permanent residence in the United States. On September 30, 2014, HSI agents executed search warrants at the restaurants in Spring Lake Park and West St. Paul, Minnesota. They identified 17 undocumented workers working in the restaurants.
According to the defendants’ guilty plea and documents filed in court, GUO and WENG were aware that the employees were not authorized to work in the United States. Moreover, the defendants did not ask the employees to fill out paperwork, including I-9 Employment Eligibility Verification forms. GUO and WENG also failed to report the unauthorized workers to the Minnesota Department of Economic Development. The employees were paid in cash “off the books.”
This case is the result of an investigation conducted by Homeland Security Investigations.
Assistant U.S. Attorneys Julie E. Allyn and Laura M. Provinzino are prosecuting this case.
Defendant Information: MING GUO, 46
North Miami Beach, Fla.
Convicted: • Knowingly Hiring Ten or More Unlawful Aliens, 1 count
BIJIAN WENG, 28
Spring Lake Park, Minn.
Convicted: • Knowingly Hiring Ten or More Unlawful Aliens, 1 countTwo Jacksonville Men Charged with Investment FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Joshua Gilliland (31) and Chawalit (“Chow”) Wongkhiao (28), both of Jacksonville, with conspiracy to commit wire fraud and conspiracy to commit money laundering. If convicted on all counts, each faces a maximum penalty of 30 years in federal prison. The indictment also notifies both men that the United States intends to seek forfeiture of $1.13 million, which represents the proceeds of the wire fraud offense, and $4,104,823, the amount of money involved in the money laundering offense.
According to the indictment, Gilliland and Wongkhiao, doing business as Allied Markets LLC, solicited money for purported investments in foreign currency exchange (“forex”) transactions. Between March 2012 and July 2014, based on their representations, investors gave them substantial amounts of money. Contrary to their representations, Gilliland and Wongkhiao allegedly invested only about one-fifth of the total investors’ funds in forex transactions, which resulted in a loss. A large portion of the funds were used for personal expenses, including cash withdrawals, rent, furnishings, clothing, travel, food, and entertainment. They also used some of the funds received from later investors to pay off earlier investors.
An indictment is merely a formal charge that a defendant has committed a violation of one of more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, the Florida Office of Financial Regulation, and the Jacksonville Beach Police Department. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Two Former U.S. Army Soldiers Sentenced for Stealing $2.7 Million in Government Funds While Stationed in Saudi ArabiaRead the Press Release
NEWNAN, Ga. - Jasen Minter and Louis E. Nock have each been sentenced to four years, nine months in prison for stealing more than $2.7 million from a United States Government bank account while they were on active duty in the United States Army stationed in Riyadh, Saudi Arabia.
“This was an egregious abuse of trust by two former U.S. Army soldiers who had access to millions of dollars of government money,” said Acting U.S. Attorney John Horn. “Their conduct betrayed their trust and honor as servicemembers and took substantial funds away from the United States Military Training Mission in Saudi Arabia.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While the sentencing of both former U.S. Army Captain Jasen Minter and Sgt. First Class Louis Nock will finally hold them accountable for their criminal actions in stealing over two million dollars in government monies, it remains to be seen if they will be able to repay the government in spite of the fact that, as part of their sentencing, they are ordered by the court to do so. While both Minter and Nock were stationed in Saudi Arabia, their purpose as Finance Officers was to support the war fighter through the U.S. Military Training Mission. They, instead, literally sent boxes of U.S. cash back to the States for their own personal gain. This has been an extensive and protracted investigation initiated by the U.S. Army Criminal Investigative Division and the Department of Defense- Office of Inspector General. The FBI will continue to work with its military components in ensuring that U.S. funds designated for military use are used as intended and not diverted to personal bank accounts as was seen in this case.”
“Instead of serving their country honorably while stationed overseas in a sensitive assignment, these two U.S. Army finance officers betrayed it by abusing their positions of trust and embezzling more than $2.7 million in American taxpayer funds,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. “This sentencing should serve as a constant reminder that DCIS and our law enforcement partners will relentlessly pursue corruption, fraud, and abuse within Department of Defense programs anywhere in the world, and bring violators to justice.”
“This sentencing is another great example of the work our special agents do on a daily basis,” said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “The defendants attempted to profit by compromising the readiness of our servicemembers during a time of war, but this joint investigation unraveled their scheme and now they are being held responsible for betraying the trust placed in them.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Minter and Nock served as the Finance Officer and Deputy Finance Officer, respectively, for the United States Military Training Mission in Riyadh, Saudi Arabia from 2006 to 2007. As part of their duties in the Finance Office, Minter and Nock had access to a U.S. government bank account that was held at the Saudi American Bank.
In June 2006, the defendants withdrew approximately $1.2 million in cash from the bank account and kept those funds for their own benefit. In August 2006, they made another withdrawal of more than $1.5 million in cash, and again kept the funds for their own use instead of returning them to the Finance Office. Before leaving Saudi Arabia, both defendants falsely affirmed in Finance Office records that there were no missing funds from the bank account. An audit conducted by the Department of Defense later revealed the theft of funds.Jasen Minter, 44, of Fayetteville, Georgia, has been sentenced to four years, nine months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,216,617.97. Minter was convicted on these charges on November 21, 2014, after he pleaded guilty.
Louis E. Nock, 48, of Orlando, Florida, has been sentenced to four years, nine months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $2,216,617.97 to the United States Army. Nock was convicted of these charges on January 5, 2015, after he pleaded guilty.
This case was investigated by the United States Army Criminal Investigation Division, the Federal Bureau of Investigation, the United States Air Force Office of Special Investigations, and the Department of Defense, Office of the Inspector General.
Assistant United States Attorney Jamie 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 Newnan Division is http://www.justice.gov/usao/gan/.
Town of Oyster Bay Commissioner Frederick Ippolito Indicted for Six Years of Tax EvasionRead the Press Release
An indictment was unsealed today in United States District Court for the Eastern District of New York charging Frederick Ippolito, a resident of Syosset, New York, with six counts of tax evasion. Ippolito is the Commissioner of Planning and Development for the Town of Oyster Bay (TOB). Ippolito is scheduled to be arraigned this afternoon before United States Magistrate Judge A. Kathleen Tomlinson at the federal courthouse in Central Islip.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI).
According to the indictment, from 2008 to 2013, Ippolito received over $2 million in consulting fees from Carlo Lizza & Sons, Paving, Inc., a company located in Old Bethpage, New York, as well as from a principal of that company. Ippolito allegedly evaded taxes on that income by willfully failing to report it on his personal tax returns or the tax returns of entities he controlled. Ippolito is the President of CAI Associates, LTD, a consulting and snow removal business, and a former officer of CAI Restaurant, Inc., d/b/a Christiano’s, in Syosset, New York. If convicted, Ippolito faces a statutory maximum sentence of five years in prison and a fine of up to $250,000 on each of the six counts.
“Tax evasion victimizes every taxpaying American,” stated United States Attorney Lynch. “We and our partners in the IRS will continue to aggressively identify and pursue all individuals – including public officials – who evade their taxes. No one is above the law.”
IRS-CI Special Agent-in-Charge Kitchen stated, “The public expects their elected and appointed officials to obey the same laws as it does. IRS-Criminal Investigation is committed to ensuring that everyone pays their fair share. Public officials will be held accountable for their actions before they took office, while they serve the public, and after they leave office. They must meet their tax obligations just like the people they serve.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorneys Catherine M. Mirabile and Raymond A. Tierney.
The Defendant:
FREDERICK IPPOLITO
Age: 76
Syosset, New York
E.D.N.Y. Docket No. 15-CR-129
Three Sentenced in Income Tax Refund SchemeRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, South Carolina - United States Attorney Bill Nettles stated today that Ivon Martinez, age 40 of West Columbia, Alonzo Leon Ortega, age 42 of Lexington, and Francisco Campos Aguilar of Woodruff were sentenced in connection to a scheme to receive over $1.4 million dollars in fraudulent income tax refund checks from the United States Treasury. Leon-Ortega and Campos-Aguilar each entered guilty pleas to one count of conspiracy in violation of 18 United States Code, Section 371. Martinez pleaded guilty to unlawful identification document transfer in violation of 18 United States Code, Section 1028(a)(2) and aggravated identity theft in violation of 18 United States Code, Section 1028A. According to facts presented during the guilty plea hearing, Martinez bought or stole IRS form W-2s from migrant workers in and around the Lexington County area. Martinez and other members of the conspiracy used the W-2 forms to file fraudulent income tax returns, often adding multiple fictitious dependents to inflate the amount of the refunds. Ortega and Aguilar would then use forged Mexican Consular Identification Cards to cash the refund checks at retail locations around Lexington County. Martinez received a sentence of 42 months of incarceration, Leon Ortega received a sentence of 1 year of incarceration and Campos Aguilar received 8 months of home confinement and 5 years’ probation. In addition, all three defendants face possible deportation. Sentencing dates for the other members of the scheme have not been set.
“The IRS is aggressively pursuing those who steal others' identities in order to file false returns,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “Our cooperative work with the U.S. Attorney’s Office will help protect taxpayers in South Carolina from being victimized by identity theft. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible.” The case was investigated by Special Agents with the IRS, the Department of Homeland Security/HSI, The United States Postal Service and the South Carolina Law Enforcement Division and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.####
Three Individuals Plead Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Three individuals, including a former employee of the U.S. Postal Service, have pled guilty based on their participation in an identity theft tax refund fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Shawn Hawes, 34, of Miami, Florida, Toni Sophia Yates, 28, of Hollywood, Florida, and Kelly Urseles Roberts, 39, of Miami, Florida, each pled guilty to one count of aggravated identity theft. Hawes and Yates also pled guilty to one count of possession of fifteen or more unauthorized access devices. Roberts also pled guilty to one count of theft of government property.
According to court documents, law enforcement executed a search warrant at a storage unit rented to Yates. Hawes used this storage unit with Yates. During a search of the unit, law enforcement found, among other things, notebooks containing handwritten personal identifying information, including the social security numbers of approximately 600 individuals. In addition, law enforcement found equipment capable of creating false identification documents and credit/debit cards, and actual false identification documents and credit/debit cards. Yates name was embossed on a number of the cards. Inside one of the notebooks was the social security number of an individual who had a tax return filed on his behalf in 2014. The refund associated with this return had been direct deposited into Hawes’ bank account. This individual did not authorize Hawes or Yates to possess or use his personally identifiable information.
Defendant Hawes was arrested for, among other things, possession of stolen tax refund checks issued by the United States Treasury Department. Following Hawes’ arrest, law enforcement began focusing on who provided the treasury checks to Hawes. Law enforcement suspected that this source was a mail carrier because Hawes had referred to the course as the “postman.” Yates called a cooperating defendant and asked him if he was interested in buying more checks from the postman. The cooperating defendant said that he was interested. Ultimately, Roberts met with the cooperating defendant on three separate occasions and sold him a total of nine treasury checks.
Yates is scheduled to be sentenced on May 12, 2015 at 8:30 a.m. Roberts is scheduled to be sentenced on May 13, 2015 at 8:30 a.m. Hawes is scheduled to be sentenced on May 27, 2015 at 8:30 a.m. Each defendant will be sentenced by U.S. District Judge Cecilia M. Altonaga. At sentencing, each defendant faces a maximum of ten years in prison for the theft of government property and access device charges, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI, USPIS, and United States Postal Service Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tennessee Corporation and Employees Indicted by Federal Grand Jury for BriberyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that Herschell Becker, John Becker aka Jack Becker, and ADA Station Communication, Inc. were indicted by a federal grand jury in Anchorage for bribery of a public official. The offenses charged occurred from June 2014 through August 2014.
Herschell Becker, 48, of Grandview, Tennessee, and ADA Station Communication, Inc., based in Crossville, Tennesse were charged with three counts of bribery of a public official together with a criminal forfeiture allegation. Jack Becker, 53, of Crossville, Tennessee was charged with two counts of bribery of a public official together with a criminal forfeiture allegation.
According to the indictment, ADA Station Communication, Inc. was founded in 1995 and has been a telecommunication company, specializing in providing turnkey structured cabling infrastructures including analysis, design, engineering, installation, and maintenance of voice, video, and data networks, obtaining approximately 65% of its business from federal entities. ADA Station Communication, Inc. has had, and continues to have, subcontracts to install and upgrade fiber optic cables on Joint Base Elmendorf Richardson (JBER) during 2014 and 2015. Herschell Becker has been the Vice President of ADA Station Communication, Inc. since 1995 and Jack Becker has been an employee of ADA Station Communication, Inc. since approximately 2003.
The indictment alleges that on June 18, 2014, the defendants offered $10,000 to a U.S. Air Force Cable/Antenna Work Leader to accept work previously identified as deficient that they performed as subcontractors installing fiber optic cables on JBER as complete. The indictment further alleges that on August 28, 2014, the defendants gave $5,000 to a U.S. Air Force Cable/Antenna Work Leader to accept work previously identified as deficient that they performed as subcontractors installing fiber optic cables on JBER. The indictment also alleges that Herschell Becker and ADA Station Communication, Inc. offered a U.S. Air Force Cable/Antenna Work Leader that it would be well worth his while if he recommended ADA Station Communication, Inc. as subcontractors for future work on JBER.
Assistant U.S. Attorney Yvonne Lamoureux, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The Air Force Office of Special Investigations conducted the investigation leading to the indictment in this case.
An indictment 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.
Two Plead Guilty to Tax FraudRead the Press Release
Jackson, Miss - Jeffery Jamison, 57, of Brandon, and Ashley Davis, 30, of Jackson, pled guilty on Thursday, March 19, 2014 before Senior U.S. District Judge Tom S. Lee to intentionally failing to file a FORM 8300 with the U.S. Department of the Treasury in relation to their business activities at a Jackson used car dealership known as Spirit Automotive, announced U.S. Attorney Gregory K. Davis and Jerome R. McDuffie, Acting Special Agent in Charge of IRS Criminal Investigation.
According to the facts disclosed during the guilty plea, Jamison, the owner of Spirit Automotive, and Davis, his employee, accepted $13,400 in cash from an undercover special agent posing as a drug dealer. Jamison and Davis arranged the purchase of the car to make it appear that Spirit Automotive had received less than $10,001 in cash for the vehicle by creating a false financing agreement.
IRS Criminal Investigation Acting Special Agent in Charge, Jerome R. McDuffie, stated: "It is a violation of the law to accept over $10,000.00 in currency for the purchase of a vehicle and not file the required forms for federal reporting purposes. Jeffrey Jamison and Ashley Davis regularly conducted business at Spirit Automotive in a manner that violates federal statute. Individuals who engage in this type of activity often provide opportunity for drug dealers and others who traffic in illegally obtained currency to launder their money at the expense of honest citizens and taxpayers. The Special Agents of IRS - Criminal Investigation stand ready to pursue prosecution in these instances, and remain committed to upholding the legal statutes that are in place to protect the sanctity of our economy."
The defendants will be sentenced by Senior U.S. District Judge Tom S. Lee on June 4, 2015 at 9:30. They each face a maximum penalty of five years in prison and a $250,000 fine.
Statement by U.S. Attorney Damon P. Martinez on the Fatal Shooting of Navajo Tribal Police Officer Alex YazzieRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez released the following statement today regarding the fatal shooting of Alex Yazzie, a Police Officer with the Navajo Nation Division of Public Safety who was commissioned as a Special Federal Officer by the BIA’s Office of Justice Services:
“Officer Alex Yazzie was a dedicated law enforcement officer and a courageous public servant. Although he was taken from us so suddenly and far too soon, Officer Yazzie leaves behind an indelible legacy that will live on in the lives he touched through the work that the BIA, the Navajo Nation Division of Public Safety and all tribal police officers continue to perform to safeguard and protect our tribal communities. His loss is a tragic reminder that the work of our law enforcement officers is profoundly heroic and deserving of our most emphatic support. The thoughts and prayers of the law enforcement community will be with Officer Yazzie’s family and loved ones throughout this difficult time. And as we go forward, the Department of Justice and the U.S. Attorney’s Office intend to honor his service and his sacrifice by continuing to fight for the values he protected every day, and to protect the tribal communities for whom he gave his life.”
Statement by Attorney General Holder on the Departure of B. Todd Jones as the Director of the Bureau of Alcohol, Tobacco, Firearms and ExplosivesRead the Press Release
Attorney General Eric Holder released the following statement on the departure of Director B. Todd Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives:
“Throughout his tenure as Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Todd Jones has cemented his reputation as an exemplary leader, a consummate professional, and an outstanding public servant. Since 2011, when I asked Todd to serve as Acting Director of ATF, he has made bold changes, advanced forward-looking policies, and taken innovative steps to strengthen ATF’s investigative capabilities—including ballistic imaging technology that recently played a critical role in the investigation of the shooting of two police officers. With his guidance, ATF has implemented its Frontline business model—a data-driven approach designed to ensure the agency can focus its resources to achieve maximum impact. The agency has developed groundbreaking law enforcement initiatives across the country to combat violent crime and bring dangerous criminals to justice. And as a result of Todd’s leadership, ATF has built a proactive, creative, and effective team that is well-prepared to drive the agency into the future.
“As a former officer in the United States Marine Corps, a highly talented prosecutor, and a proven leader who has been named a U.S. Attorney by two different presidents, Todd Jones has never hesitated to answer the call to serve his community and his country with exceptional integrity and uncommon distinction. As the first ever Senate-confirmed Director of ATF, his indelible legacy will serve as an inspiring example for all those who follow him. On behalf of the Department of Justice, I thank him for his extraordinary service and wish him all the best as he takes the next steps in his already remarkable career.”
Speech Therapist Guilty of Health Care FraudRead the Press Release
HOUSTON – Rebecca Lee Rabon, 44, of Houston, has pleaded guilty to one count of conspiracy to commit health care fraud and five counts of health care fraud in relation to a health care fraud scheme that billed Tricare and Blue Cross and Blue Shield of Texas more than $3.7 million, announced U.S. Attorney Kenneth Magidson.
Rabon is a licensed speech therapist and the owner and operator of Rabon Communication Enhancement (RCE), a speech therapy clinic for children.
At the hearing today, she admitted that she worked together with Tiffany Nicole Thompson, 31, to submit claims to insurance providers for services that were not medically necessary and not provided. Rabon further admitted that between March 29, 2009, and Nov. 11, 2013, her clinic did not have the equipment or supplies to provide treatment for dysphagia - a swallowing and oral feeding dysfunction - and that neither she, nor any speech therapist employed at RCE, provided any of those treatments to children at the clinic.
Rabon further admitted she submitted $925,140 in false and fraudulent claims for herself and Thompson and three unsuspecting RCE employees for various medical and speech therapy services that were not provided, and including $110,550 in false and fraudulent claims under the medical insurance of one unsuspecting employee. Rabon admitted she and Thompson sent a forged letter to Blue Cross and Blue Shield of Texas with a false address for the employee to prevent the employee from discovering the fraud.In total, Tricare and Blue Cross and Blue Shield of Texas received approximately $3,784,642 in false and fraudulent claims from Rabon and paid her approximately $1,285,827 on those claims.
Rabon has been in custody since Jan. 23, 2015, for violating the terms of her pre-trial release.
U.S. District Judge Melinda Harmon has set sentencing for June 19, 2015, at which time Rabon faces up to 10 years in prison and a possible $250,000 maximum fine.
Thompson, of Katy, has also pleaded guilty to conspiracy and health care fraud charges related to the scheme and will be sentenced April 17, 2015.
The investigation into Rabon and Thompson was the result of an investigation conducted by agents from the Department of Defense - Criminal Investigative Service with assistance of Blue Cross and Blue Shield of Texas – Special Investigations Department. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
Six Arrests in City of Miami Public Corruption/Kickback CaseRead the Press Release
Two former City of Miami Public Service Aides (PSA) and four two truck drivers were arrested this morning for their alleged participation in a kickback/bribery scheme, in which the four tow truck drivers allegedly paid the PSAs thousands of dollars in a series of bribes over a multi-year period. In exchange for the payment, the PSAs allegedly provided to the drivers real-time accident location information that they had obtained from police computer software programs.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
City of Miami PSA Aristides Paulino, 31, City of Miami PSA Keri Dixon, 27, Jesus Tello, 29, Reinaldo Martin Cruz, 30, Ronald Alfaro, 27, and Michael Perez, 22, were charged by complaint with conspiring to commit wire fraud and pay bribes related to local agencies receiving federal funds.
According to the facts set forth in the complaint affidavit, the City of Miami has established a wrecker operator system for the purpose of protecting drivers and preventing corruption. For example, when a car is disabled because of an accident, the driver must call a tow company himself or herself, have his or her insurance company arrange a tow, or ask the responding officer or PSA to arrange a tow. If an officer or PSA is asked to arrange the tow, almost every police department, including MPD, has strict regulations on how that tow referral must be made.
As further alleged, the information provided by PSAs Paulino and Dixon to tow truck operators Tello, Martin Cruz, Alfaro and Perez, and other unnamed co-conspirators, enabled the tow truck operators to arrive first at accident scenes, often times even before the arrival of law enforcement. Once there, the tow truck operators would illegally solicit stranded accident victims for towing and steer those victims to a particular collision repair business.
The complaint also alleges that at the times when PSAs Paulino and Dixon were present at the accident locations, Paulino and Dixon actively assisted the tow truck operators in soliciting business from the stranded individuals. The particular collision repair business that profited from the illegal tows would then pay a kickback to the tow truck operators and PSAs so that they too would be enriched from their participation in the illegal scheme.
“After an accident, individuals are concerned with their well-being and the well-being of the other accident victims. The two Public Service Aides and four tow truck drivers arrested today used these concerns to violate their positions for illicit profit,” said U.S. Attorney Wifredo Ferrer. “The residents of Miami have a choice. If you are in an accident and a tow truck operator that you have not called arrives, know that you have the right to refuse that operator’s service. As the charges filed today demonstrate, we are committed to unraveling this scheme to bring those who target accident victims to justice.”
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the Internal Affairs Section of MPD. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.