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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.
Serial Bank Robber Sentenced to 25 Years in PrisonRead the Press Release
Former Broward County resident sentenced to 25 years imprisonment for robbing five banks located in Broward County, and his attempted robbery of a bank located in Tamarac.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
United States Judge James I. Cohn sentenced Jeffrey Ross, 28, to 199 months imprisonment, consecutive to a 101 month sentence Ross is currently serving out of the Eastern District of Michigan. The evidence established that in September 2012, Ross attempted to rob a bank in Tamarac. During the robbery, he displayed a firearm that was concealed in his waistband and demanded that the bank teller give him money. When the teller was slow to respond, Ross fled the bank to avoid apprehension. From October 19, 2012 through February 28, 2013, Ross robbed five banks in Broward County. During each of the robberies, Ross displayed a firearm that was concealed in his waistband. In total, Ross stole $9,646.
After the last robbery, Ross fled to Michigan where he committed another bank robbery in July 2013. During that robbery, Ross pointed a firearm at bank employees and stole $4,350. Ross then ordered all the employees into the bank vault before he fled the scene. After a foot pursuit and area canvas by the police, law enforcement apprehended Ross in the bushes next to a building located near the bank. After pleading guilty in Michigan and being sentenced to 101 month, Ross was extradited to South Florida to face charges.
U.S. Attorney Wifredo Ferrer commended the FBI’s Violent Crime Task Force, BSO, and the Ft. Lauderdale Police Departments for their investigative efforts on this matter. The FBI’s Violent Crime Task Force includes members from the FBI, BSO, and other local police departments. This case was prosecuted by Assistant U.S. Attorney Mark Dispoto.
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.
Richland Man Sentenced to 15 Months for Tampering with Pill BottlesRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that Brian Francis Conover, 35, of Richland, Michigan, was sentenced to serve 15 months in federal custody. He was also ordered to pay $13,396 in restitution to Meijer Stores and will serve a year under court supervision after he is released from prison.
On November 3, 2014, Conover pleaded guilty to adulterating dietary supplements. From July 27, 2014 to August 15, 2014, he purchased over-the-counter dietary supplements from Meijer stores located in Kalamazoo, Allegan, and Calhoun counties. He then removed and substituted the contents of the pill bottles and returned the bottles to the store shelves, which he had repackaged and resealed in the original product boxes. The over-the-counter dietary supplements included Schiff Mega Red Omega-3 Krill Oil, Bayer Women’s One-A-Day, and Nature’s Bounty Biotin. Once discovered, Meijer removed all of the products from its shelves in the affected counties. Law enforcement officials examined the packages, bottles, and contents and discovered foreign substances, including pet food, raisins, chocolate chips, aspirin, prescription strength pain medication, such as acetaminophen and ibuprofen, and the prescription drugs Coumadin and Sotalol. Coumadin is a blood thinner and Sotalol is a medication to regulate heartbeats. Upon executing a search warrant on Conover’s apartment, on August 28, 2014, law enforcement found large quantities of the over-the-counter products, packaging, and bottles. Conover was arrested on September 2, 2014, and has remained in custody. In imposing sentence, Chief U.S. District Judge Paul L. Maloney expressed dismay at Conover’s lack of concern for others and noted that Coumadin could be fatal if taken by the wrong person. Judge Maloney stated that Conover does what he wants to do with little or no concern for others and the rules. Judge Maloney further stated that the dollar amount loss did not fully reflect the impact on the public and Meijer. U.S. Attorney Miles echoed Judge Maloney’s concerns, “Tampering with over-the-counter supplements and adulterating food can seriously harm or even kill people. Conover’s criminal actions were a blow to our trust and confidence in what we consume and put in our bodies. Americans rightfully demand that trust and confidence. Along with our federal and state law enforcement partners, we will vigorously investigate and prosecute this sort of criminal behavior.” The sentence imposed by the court in this matter reflects the seriousness of the potential harm the defendant’s actions could have inflicted on innocent consumers,” said Special Agent in Charge John J. Redmond, FDA Office of Criminal Investigations (OCI) Chicago Field Office. “OCI will continue to work with our law enforcement partners to pursue those who choose to put the public health at risk for their own personal gain.” Investigation of this case was conducted by the FBI, Food and Drug Administration – Office of Criminal Investigations, Portage Public Safety, Kalamazoo County Sheriff’s Department, with the assistance of FBI and FDA-OCI in Minneapolis, Minnesota. Assistant United States Attorney Daniel Mekaru prosecuted the case. ENDRequest for CoverageRead the Press Release
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian, along with heads of the FBI, DEA, ICE/HSI, U.S. Marshals Service, U.S. Secret Service, U.S. Postal Inspection Service and Troy Police Department, will meet with TRIP – Troy Rehabilitation & Improvement Program – and TNAC – Troy Neighborhood Action Council – members to discuss how the federal and local law enforcement agencies work to keep them safe and address their crime concerns. The meeting is titled "Your Federal Tool Box". The meeting details are:
Monday, March 23rd
6 – 7:30 PM
Blitman Commons Residence Hall
1800 6th Ave.
Troy, NYRenton Man who Killed 18-Year-Old in Deadly Drug Deal Sentenced to 10 Years in PrisonRead the Press Release
A Renton man who shot and killed an 18-year-old as he ran from the scene of a failed drug robbery was sentenced today in U.S. District Court in Seattle to ten years in prison and four years of supervised release, announced Acting U. S. Attorney Annette L. Hayes. DAVID STEVEN ROSS, 36, pleaded guilty to three federal felonies: conspiracy to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and unlawful possession of a firearm. At the sentencing hearing U.S. District Judge Robert S. Lasnik said, “The fact that you brought that firearm to a volatile situation, knowing it was suspicious…. You should have walked away.”
“This case is a grim reminder that drugs and guns don’t mix, said Acting U.S. Attorney Annette L. Hayes. “No matter what the drug, we will not allow the violence that comes from this dangerous combination to go unpunished. That is especially true when – as in this case – the gun is in the hands of a convicted felon.”
According to the records filed in King County Superior Court and federal court, ROSS and an associate arrived at a Federal Way apartment complex to sell two pounds of marijuana to two men – Lenny Brikn and his brother, Deshawn Boykin. ROSS was armed with a stolen gun, despite having two previous felony drug convictions that prohibited him from possessing a firearm. Brikn and Boykin drew “Mac 10” style semi-automatic pistols, ordered ROSS and his associate to lie on the ground, and attempted to rob them of the marijuana. ROSS claimed to be an undercover police officer, and scared Brikn and Boykin into running away. As the two would-be robbers fled, ROSS drew his gun, aimed and fired multiple times at the men. Boykin was hit twice in the back and died of his wounds at St. Francis Medical Center.
Lenny Brikn, Jr., 20, of Federal Way was sentenced last September to seven years in prison for Possession of a Firearm in Furtherance of a Crime of Violence & a Drug Trafficking Crime.
The case was investigated by the Federal Way Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Registered Sex Offender Sentenced to 23 Years in Prison for Photographing his Molestation of a Sleeping ChildRead the Press Release
A registered sex offender with a long history of sex crimes was sentenced today in U.S. District Court in Tacoma to 23 years in prison and 25 years of supervised release, announced Acting United States Attorney Annette L. Hayes. BLAINE K. NIPP, 37, from Vancouver, Washington, made sexually explicit videos and photographs of a 10-year-old girl who had been given pain medicine for a broken bone. The girl’s parents had no idea NIPP was a registered sex offender when they accepted his offer to care for their daughter while she recovered from the injury. At sentencing U.S. District Judge Robert J. Bryan said, “The defendant’s actions are harmful to others, so it is important to keep him in custody for a long period of time to protect the public from further crimes.”
“This horrifying betrayal of trust deserves a significant prison sentence,” said Acting United States Attorney Annette L. Hayes. “The defendant knew he was prohibited from having contact with children and yet he still did so to satisfy his prurient interests. To molest a child suffering from a serious injury, and under the influence of powerful pain medication, is outrageous. I commend the efforts of the DHS HSI agents and investigators whose careful investigative work uncovered the defendant’s crime and led directly to the sentence that the court imposed today.”
NIPP was convicted of his first sex offense nearly 20 years ago when he fathered a child with a 13-year-old girl. In the years that followed NIPP was convicted of child pornography offenses and of entering and trespassing in an apartment where a 10-year-old was home alone. In August 2013, NIPP volunteered to assist the family of a 10-year-old girl who had suffered a broken leg while riding her bike. The family was acquainted with NIPP, but did not know him well. While alone with the injured child, NIPP took sexually explicit pictures of her while she was asleep on pain medication. NIPP also made explicit videos of his own sexual arousal and the drugged child. The photos were later discovered on NIPP’s electronic devices, after he became the target of an investigation for trading child pornography over the internet. NIPP was arrested in January 2014 and has remained in custody since that time.
“Nipp’s trading of Internet child pornography was a symptom of a larger problem,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “As we later learned through our investigation, the defendant used his charm to manipulate his way into situations where he could victimize young girls. With this sentence, children will be safe from Nipp. However, his victims must live the rest of their lives with the scars of his sexual abuse.”
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Marci Ellsworth.
Prisoners Sentenced for Assaulting Fellow InmateRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that two prisoners at the U.S. Penitentiary in Pollock, La., were sentenced for beating a fellow inmate resulting in traumatic brain injury.
Jeffrey Lovell, 33, Evansville, Ind., and Christopher Simpson, 36, of Hendersonville, N.C., were sentenced by U.S. District Judge Dee D. Drell to 68 months and 71 months in prison respectively for one count of assault resulting in serious bodily injury. They were also sentenced to three years of supervised release. According to evidence presented at the guilty pleas, video cameras captured Lovell and Simpson assaulting a third inmate outside of his cell on June 11, 2013 at the U.S. Penitentiary in Pollock. The inmate was struck around his head and torso. The prisoner was later brought to a hospital where he was treated for traumatic brain injury, which required a feeding tube.
The FBI and the U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.
Powell County Couple Sentenced to 41 Months for Manufacturing Counterfeit BillsRead the Press Release
LEXINGTON — A Powell County couple, that previously admitted to selling nearly $3,000 in counterfeit money, have both been sentenced to 41 months in federal prison.
On Wednesday, U.S. District Judge Danny C. Reeves sentenced Timothy Ray Profitt, 34, and his wife, Amanda Marie Profitt, 27, for counterfeiting securities of the United States. Under federal law, each defendant will have to serve 85 percent of their prison sentence.
According to their plea agreements, between September 26, 2013 and October 2, 2013, the Profitts manufactured 143 counterfeit bills, all in denominations of $20. They then sold $2,860 in counterfeit bills to others in Powell County, for less than the face value of the counterfeit money.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Craig Hutzell, Acting Special Agent in Charge, United States Secret Service, jointly announced the sentences.
The investigation was conducted by the U.S. Secret Service and the Winchester Police Department. Assistant U.S. Attorney Kate K. Smith prosecuted this case on behalf of the federal government.
Port Allen Man Convicted and Sentenced for Transporting Unlawfully Taken WildlifeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that ANDRE A. CHUSTZ JR., age 50, of Port Allen, Louisiana pled guilty and was sentenced for his violation of the Federal wildlife laws.
CHUSTZ was charged in a Bill of Information, filed on January 23, 2015, charging him with transporting unlawfully-taken wildlife, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(2). At his guilty plea this morning, CHUSTZ admitted that in November 2013, he engaged in the unlawful hunting of deer in Breckenridge County, Kentucky without having first obtained the required non-resident hunting licence and permit. CHUSTZ admitted he killed a 12- point whitetail buck (pictured below) and then caused another person, a Kentucky resident, to falsely report that the buck had been legally harvested. CHUSTZ then knowingly transported the cape, antlers, and meat from Kentucky to Louisiana and had the shoulder mount prepared by a local taxidermist.
At today’s sentencing, United States Magistrate Judge Stephen C. Riedlinger sentenced CHUSTZ to a 1-year term of probation, during which time CHUSTZ is barred from any and all deer hunting. CHUSTZ was also ordered to pay a $500 fine, to make restitution in the amount of $190 to the Commonwealth of Kentucky, and to forfeit the shoulder mount of the buck.
U.S. Attorney Green stated: “Wildlife laws are designed to protect our natural resources and to ensure that, through mandatory license and permit fees, States are able to offer quality hunting experiences to all citizens. Today’s guilty plea and sentence reflect the seriousness of the defendant’s conduct and should act as a deterrent to others who might consider traveling from Louisiana to hunt in other States, without purchasing the required non-resident licences and permits.”
This investigation was handled by the U.S. Attorney’s Office and the United States Fish and Wildlife Service. This matter is being prosecuted by Assistant United States Attorney Lyman E. Thornton III and investigated by USFWS Special Agent Ben Bryant.
Pittsburgh Man Sentenced to 5 Years in Prison for Conspiring to Distribute HeroinRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to five years imprisonment followed by four years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Donald Freeman, age 25.
According to information presented to the court, from in and around December 2013, and continuing thereafter to in and around March 2014, Freeman conspired with others to distribute and possess with intent to distribute 100 grams or more of heroin, a Schedule I controlled substance.
Assistant United States Attorneys Amy L. Johnston and Cindy K. Chung prosecuted this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to successful prosecution of Freeman. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Streets Task Force including Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Police Department. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Philadelphia Woman Charged with Stealing Dead Husband's Retirement BenefitsRead the Press Release
PHILADELPHIA - Shirley Goldwire, 68, of Philadelphia, Pennsylvania, was charged by information with two counts of theft of government funds, announced United States Attorney Zane David Memeger. According to the information, the defendant received retirement benefits intended for her husband, after her husband’s death in July 1998 until the defendant’s fraud was discovered in 2012. Additionally, the defendant is alleged to have also stolen money intended for a friend of her ex-husband, who was also deceased at the time of the defendant’s husband’s death. The defendant’s alleged actions resulted in a loss to the government of approximately $264,021.
If convicted, the defendant faces a maximum possible sentence of 20 years in prison, a three‑year period of supervised release, restitution to the government of $264,021, a $500,000 fine, and a $200 special assessment.
The case was investigated by the Social Security Administration, Office of Inspector General, and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Owner of Medical Equipment Supply Company Convicted for $3.5 Million Medicare and Medi-Cal Fraud SchemeRead the Press Release
A jury in federal court in Los Angeles convicted the former owner of a durable medical equipment supply company of health care fraud charges in connection with a $3.5 million Medicare and Medi-Cal fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Los Angeles Region, Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Field Office, and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Bureau of Medi-Cal Fraud and Elder Abuse made the announcement.
Sylvia Walter-Eze, 48, of Stevenson Ranch, California, was convicted of one count of conspiracy to commit health care fraud, four counts of health care fraud, and one count of conspiracy to pay and receive illegal kickbacks. Sentencing is scheduled for June 15, 2015, before U.S. District Judge R. Gary Klausner of the Central District of California.
The evidence at trial demonstrated that Walter-Eze, the then-owner of Ezcor Medical Supply, paid illegal kickbacks to patient recruiters in exchange for patient referrals. The evidence further showed that Walter-Eze paid kickbacks to physicians for fraudulent prescriptions, primarily for medically unnecessary—but expensive—power wheelchairs, that she then used to support her fraudulent bills to Medicare and Medi-Cal.
Between 2007 and 2012, Walter-Eze submitted $3,521,786 in claims to Medicare and Medi-Cal, and received $1,939,529 in reimbursement for those claims.
The case was investigated by the FBI, HHS-OIG’s Los Angeles Regional Office and the California Department of Justice, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case was prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner of Los Angeles Medical Supply Company Convicted in $3.3 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Los Angeles found the owner of a medical supply company guilty of four counts of health care fraud today in connection with a $3.3 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California, Special Agent in Charge Glenn R. Ferry of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Region and Assistant Director in Charge David L. Bowdich of the FBI’s Los Angeles Field Office made the announcement.
Hakop Gambaryan, 55, of East Hollywood, the owner of Colonial Medical Supply, was convicted of four counts of health care fraud. A sentencing hearing will take place before U.S. District Judge Otis D. Wright II of the Central District of California, and will be scheduled at a later date.
According to evidence presented at trial, between March 2006 and December 2012, Gambaryan paid cash kickbacks to medical clinics for fraudulent prescriptions for durable medical equipment, such as expensive power wheelchairs, which the patients did not need. Gambaryan then used these prescriptions to bill Medicare for the unnecessary power wheelchairs and other equipment.
At trial, the evidence established that Gambaryan personally delivered power wheelchairs to many beneficiaries who were able to walk without assistance. In one instance, Gambaryan carried a power wheelchair up a flight of stairs for a woman who lived in a second floor apartment with no elevator. In another instance, the power wheelchair would not fit inside the beneficiary’s home so Gambaryan put it in the beneficiary’s garage.
The evidence also demonstrated that Gambaryan generated false documentation to support the fraudulent claims, including fake home assessments that made it appear home assessments had occurred when they had not. In addition, Gambaryan photocopied beneficiary signatures hundreds of times to create the appearance that the beneficiaries consented to ongoing durable medical equipment rentals, when in reality, at least two of the beneficiaries had passed away prior to the date they supposedly signed the rental agreements.
The evidence showed that Gambaryan submitted approximately $3.3 million in false and fraudulent claims to Medicare, and received more than $1.7 million on those claims.
The case was investigated by the FBI and HHS-OIG. The case is being prosecuted by Trial Attorneys Fred Medick and Ritesh Srivastava of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Owner of Tax Preparation Business Sentenced to Prison for Tax FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jennifer Rodriguez, age 41, of Hyattsville, Maryland today to a year and a day in prison followed by three years of supervised release for a fraud conspiracy arising from the filing of 283 false tax returns. Judge Motz entered an order that Rodriguez pay restitution of $983,382, the amount of fraudulent tax refunds paid by the IRS.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“The sole objective of Ms. Rodriguez’s identity theft scheme was to unjustly enrich herself at the expense of the American taxpayer,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today's sentencing of Ms. Rodriguez should serve as a stark reminder to others that criminal behavior comes with a cost, prison time.”
According to her plea agreement, Rodriguez owned Latin Multi Services, a tax preparation service located in Silver Spring, Maryland. From October or November 2010 to January 2012, Rodriguez filed false income tax returns using the stolen identities of Puerto Rico residents. The stolen identities of families, including minor children, were obtained from a co-conspirator residing in Puerto Rico. Rodriguez falsely listed the tax payers’ home addresses as her own home address in Maryland, or variations of her business address. These tax returns also included fabricated income and deductions. All of the fraudulent returns requested refunds to be deposited in bank accounts that Rodriguez or a co-conspirator controlled.
Over the course of the scheme, Rodriguez filed 283 false tax returns which caused IRS to pay $983,382 in fraudulent refunds.
United States Attorney Rod J. Rosenstein praised the IRS – Criminal Investigation for its work in the investigation and thanked Assistant U.S. Attorney Bryan E. Foreman, who prosecuted the case.
North Carolina Real Estate Investor Indicted for Conspiracy to Commit Mail FraudRead the Press Release
A federal grand jury in Raleigh, North Carolina, returned a one-count indictment against a real estate investor, charging him with conspiracy to commit mail fraud as part of a scheme related to public real estate foreclosure auctions, the Department of Justice announced today.
The indictment, filed in U.S. District Court of the Eastern District of North Carolina on March 18, 2015, charges real estate investor Rodney S. Daw, of Raleigh, with conspiracy to commit mail fraud affecting a financial institution. The department alleged that the scheme defrauded homeowners, financial institutions and others with a legal interest in selected foreclosure properties, for the unlawful purpose of obtaining money and property through fraudulent pretenses, representations or promises.
The indictment charges Daw with conspiring with others to, among other things, make and receive payoffs from co-conspirators in exchange for agreements not to compete in public auctions, and to divert money away from homeowners, financial institutions and others with a legal interest in selected properties. Several financial institutions suffered actual monetary losses as a result of the conspiracy. According to the indictment, Daw participated in the mail fraud conspiracy beginning at least as early as December 2002 and continuing until at least April 2005.
“This action marks the fourth state in which a defendant has been indicted in our ongoing investigation into illegal conduct at public real estate foreclosure auctions,” said Assistant Attorney General Bill Baer of the Antitrust Division. “We will continue to vigorously pursue those individuals who sought to capitalize on this nation’s financial crisis by seeking personal gain at the expense of homeowners and financial institutions.”
“This federal indictment illustrates the FBI’s commitment toward assisting the U.S. Department of Justice’s Antitrust Division in ensuring that those who engage in real estate investments and transactions do so on a level playing field,” said Special Agency in Charge J. Britt Johnson of the FBI’s Atlanta Field Office. “The FBI asks that anyone with information regarding such activities as alleged in this indictment contact their nearest FBI field office.”
To date, two individuals have pleaded guilty in connection with the department’s ongoing investigation into bid rigging and fraudulent schemes in the North Carolina real estate foreclosure auction industry.
The charge of conspiracy to commit mail fraud affecting a financial institution carries a maximum penalty of 30 years in prison and a $1 million fine.
This charge stems from an ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section and the FBI’s Atlanta Field Office, with the assistance of the U.S. Attorney’s Office of the Eastern District of North Carolina. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions in North Carolina should contact the Washington Criminal II Section of the Antitrust Division at 202-598-2507, or visit www.justice.gov/atr/contact/newcase.htm.
These charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Non-Indian Man from Albuquerque Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Alex R. Alicea pleaded guilty today in federal court to assaulting an Indian man by threatening him with a firearm at a convenience store located in Albuquerque, N.M., on land held in trust by the United States for the 19 Indian Pueblos in New Mexico.
Alicea, 33, a non-Indian man who resides in Albuquerque, was arrested on Oct. 31, 2014, on a criminal complaint alleging that he assaulted an Oglala Sioux Indian man on Oct. 26, 2014, by brandishing a firearm at him. According to the criminal complaint, the assault occurred at the Four Winds Travel Center, which is next to the Indian Pueblo Cultural Center on land that is deemed as Indian Country in Albuquerque.
During today’s proceedings, Alicea pled guilty to a felony information charging him with aggravated assault with a deadly weapon. In entering his guilty plea, Alicea admitted that on Oct. 26, 2014, he assaulted the victim by intentionally and recklessly displaying a firearm in a threatening manner.
At sentencing, Alicea faces a statutory maximum penalty of 18 months in federal prison followed by a term of supervised release to be determined by the court. A sentencing hearing has not yet been scheduled.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and the Albuquerque Police Department. Assistant U.S. Attorney Novaline Wilson is prosecuting this case.
Mexican Man Sentenced for Misprision of a FelonyRead the Press Release
United States Attorney Deborah R. Gilg announced that on March 20, 2015, Javier Gomez Zambrano, 21, a citizen of Mexico, was sentenced to 12 months and one day in prison for misprision of a felony, (failing to report actual knowledge of the commission of a felony as soon as possible). Gomez Zambrano was ordered to serve one year on supervised release following the prison term. However, he is expected to be deported upon completion of his prison sentence.
On the evening of April 21, 2014, Lincoln Police Department narcotics officers observed a meeting between persons in a car and a semi-tractor trailer truck in Lincoln. Persons were seen moving between the car and the truck. The car then returned to a nearby motel, and the truck headed eastbound on I-80. The truck was contacted at the Ashland/Waverly scales on eastbound I-80 and subjected to a Nebraska State Patrol Carrier Enforcement inspection. The driver admitted he had just delivered what he believed to be either money or drugs in Lincoln. A search warrant was served at the Lincoln motel room where Gomez Zambrano and two other persons were staying. Officers found an air compressor containing over 2.7 kilograms of methamphetamine which was found to be approximately 95% pure. The air compressor was covered by clothing belonging to all three occupants of the room.
One of those two occupants of the room later told officers he obtained the air compressor containing the methamphetamine from the truck driver and intended to deliver it to a customer in Lincoln. Prior to the search of their motel room, the witness said he told Gomez Zambrano and the third occupant of the motel room about the methamphetamine and about his plan to deliver it. Gomez Zambrano allowed his clothing to be used to conceal the air compressor containing the methamphetamine, and Gomez Zambrano failed to notify officers of its presence when they entered the room to serve the search warrant.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Maryland Man Sentenced to 10 Years in Prison for Shooting Outside Northwest Washington Night ClubRead the Press Release
WASHINGTON – Jonathan Blades, 30, of Suitland, Md., was sentenced today to 10 years in prison on charges stemming from a shooting outside a night club in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Blades was found guilty in January 2015, following a trial in the Superior Court of the District of Columbia, of charges of assault with intent to kill while armed, aggravated assault while armed and related firearms offenses. He was sentenced by the Honorable Michael Ryan. Upon completion of his prison term, Blades will be placed on five years of supervised release.
According to the government’s evidence, on Sunday, Feb. 2, 2014, at about 3 a.m., Blades and the victim engaged in a physical altercation after leaving a night club at 20th and K Streets NW. After the fight had stopped, Blades went to his car and retrieved a 40-caliber semi-automatic handgun. Then, as the victim ran from Blades, Blades shot nine times. The gunfire hit the victim, sending a bullet through his back and shoulder. The victim fled to a gas station several blocks away, at 22d and M Streets NW, where a citizen offered him first aid. He was hospitalized for his injuries. Blades was arrested on Feb. 5, 2014.
In announcing the sentence, U.S. Attorney Machen expressed his appreciation to the Metropolitan Police Department, the U.S. Marshals Service, and the Prince George’s County, Md. Police Department for their work on the case. He also acknowledged the work of Paralegal Specialist Allison Gregory Daniels, Victim/Witness Advocate Diana Lim, and Litigation Technology Specialist Leif Hickling, all of the U.S. Attorney’s Office. Finally, he commended Assistant U.S. Attorneys Scott Sroka and Christopher Macchiaroli, who tried the case.
Marketing Director for Local College Sentenced for Defrauding the CollegeRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr. announced today that Gregory A. DeRue of Granger, Indiana was sentenced to 21 months in prison for mail fraud. DeRue was also ordered to pay restitution of $208,133 to the victim of his scheme, Southwestern Michigan College, and agreed in a plea agreement that his asset forfeiture liability was $199,282. Following DeRue’s release from prison, he will serve a 24-month term of supervision by the Court. DeRue pleaded guilty to the charge before Chief U.S. District Judge Paul L. Maloney on November 17, 2014.
DeRue admitted in a plea agreement that while employed at Southwestern Michigan College as the Executive Director of Marketing, he contracted with DMG Media to handle all of the College’s television, radio, and billboard advertising. Unbeknownst to the College, DMG Media was a front company for DeRue himself, who invoiced the College for more than the gross amount of the services actually provided by DMG Media, invoiced the College for services DMG Media never provided, and failed to pay certain media outlets for services that had already been invoiced by DMG Media and paid by the College. The College discovered financial discrepancies in the summer of 2013 regarding DMG Media’s invoices, which totaled $487,427 over this period, and ultimately calculated the loss amount at $208,133 connected to DeRue’s mail fraud. Chief Judge Maloney adopted this loss amount number in calculating restitution owed and DeRue’s ultimate sentence.
The President of Southwestern Michigan College, Dr. David Mathews, spoke at sentencing about the negative impact on student enrollment and College finances from DeRue’s actions while Executive Director of Marketing.
U.S. Attorney Pat Miles commented that “People, like DeRue, who commit frauds not only face significant prison sentences and restitution orders, but they truly harm others. In this case, an institution of higher education and its students, faculty, and staff were harmed. I hope this conviction, sentence, and restitution will help deter others from committing selfish white collar crimes.”
“The defendant’s criminal actions, as a university employee, were selfish and inexcusable” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, together with our local, state, and federal partners will continue to fight white collar crime and corruption, and hold perpetrators accountable for their greedy actions.”
The Dowagiac Police Department and the Federal Bureau of Investigation investigated this case, with assistance from Southwestern Michigan College. Assistant U.S. Attorney Clay M. West prosecuted the case.
Manhattan U.S. Attorney Announces Conviction of Mikhail Zemlyansky on Racketeering, Securities Fraud, Mail Fraud, and Wire Fraud ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MIKHAIL ZEMLYANSKY was found guilty yesterday on racketeering conspiracy, securities fraud, mail fraud, and wire fraud charges following a four-week jury trial before United States District Judge J. Paul Oetken. The jury convicted ZEMLYANSKY of racketeering stemming from the largest single no-fault automobile insurance fraud scheme ever charged, and his two investment fraud schemes, Lyons Ward & Associates and the Rockford Group.
U.S. Attorney Preet Bharara said: “Mikhail Zemlyansky now stands convicted of spearheading three fraud schemes: one in which the defendant and his co-conspirators billed insurance companies for over $100 million in fraudulent medical treatments, and two that swindled investors out of over $18 million. Worse yet, Zemlyansky laundered the fruits of his crimes through check-cashing entities and shell companies, and invested his criminal proceeds on luxury items. Today’s verdict ensures that he will be punished for the vortex of fraud he orchestrated.”
According to the allegations in the Superseding Indictment and evidence admitted at trial:
From 2007 through 2012, ZEMLYANSKY was a leader of an enterprise engaged in a pattern of racketeering that included a massive scheme to defraud automobile insurance companies under New York’s no-fault insurance law, multiple securities fraud schemes, money laundering, and the operation of illegal gambling businesses.
Under New York State Law, every vehicle registered in the State is required to have no-fault automobile insurance, which enables the driver and passengers of a registered and insured vehicle to obtain benefits of up to $50,000 per person for injuries sustained in an automobile accident, regardless of fault (the “No-Fault Law”). The No-Fault Law requires prompt payment for medical treatment, thereby obviating the need for claimants to file personal injury lawsuits in order to be reimbursed. Under the No-Fault Law, patients can assign their right to reimbursement from an insurance company to others, including medical clinics that provide treatment for their injuries. New York State law also requires that all medical clinics in the state be incorporated, owned, operated, and/or controlled by a licensed medical practitioner in order to be eligible for reimbursement under the No-Fault Law. Insurance companies will not honor claims for medical treatments from a medical clinic that is not actually owned, operated, and controlled by a licensed medical professional.
From 2007 through 2012, ZEMLYANSKY’S organization defrauded automobile insurance companies of more than $100 million by, among other things, creating and operating medical clinics that provided unnecessary and excessive medical treatments in order to take advantage of the No-Fault Law. In addition, ZEMLYANSKY’S organization fraudulently owned and controlled more than a dozen medical professional corporations (“PCs”) – including no-fault clinics, MRI offices, and acupuncture and chiropractic PCs – by paying licensed medical professionals to use their licenses to incorporate the professional corporations. ZEMLYANSKY and his co-conspirators paid kickbacks of thousands of dollars to runners to recruit patients to receive the same battery of tests and treatments, and received kickbacks from other co-conspirators for referring patients for additional unnecessary treatments. All told, ZEMLYANSKY’S organization billed insurance companies for more than $100 million in fraudulent medical treatments. Furthermore, ZEMLYANSKY and his co-conspirators further laundered the proceeds of the fraud through check-cashing entities and shell companies, and used the money to pay for luxury cars, watches and vacations.
In addition to the no-fault insurance fraud, ZEMLYANSKY was convicted for operating two investment fraud schemes that swindled innocent victims out of nearly $18 million. Both fraudulent entities – Lyons Ward & Associates and the Rockford Group – purported to be settlement claims funding companies that invested in lawsuits in return for a portion of future settlements. As part of these schemes, ZEMLYANSKY and his co-conspirators created bogus documents and account statements used by cold-callers working in boiler rooms to solicit victims through false representations. In reality, there was no investment fund at all; instead, ZEMLYANSKY and his co-conspirators simply stole the money invested by victims and laundered the proceeds by wiring them overseas to shell companies in Eastern Europe, which were then turned into cash in the United States.
Finally, ZEMLYANSKY’S organization operated high-stakes illegal poker games in Mill Basin, Brooklyn, that netted profits of tens of thousands of dollars per game.
ZEMLYANSKY was convicted of one count of conspiracy to commit racketeering, which carries a maximum sentence of 20 years in prison. In addition, ZEMLYANSKY was convicted of one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years; mail fraud and wire fraud, which carries a maximum sentence of 20 years; as well as substantive counts of securities fraud, mail fraud and wire fraud, each carrying a maximum of 20 years. ZEMLYANSKY is scheduled to be sentenced on July 15, 2015, at 3:00 p.m., before Judge Oetken. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
ZEMLYANSKY, 37, of Hewlett, New York, was initially arrested on February 29, 2012, and is the 34th defendant convicted in this case. ZEMLYANSKY was remanded pending sentencing following his conviction.
At ZEMLYANSKY’S first trial in the fall of 2013, a mistrial was declared on Count One – which also charged ZEMLYANSKY with racketeering conspiracy – after the jury failed to reach a unanimous verdict. At that trial, ZEMLYANSKY was acquitted of eight counts of charges related to the no-fault insurance fraud scheme and money laundering.
U.S. Attorney Preet Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation. Mr. Bharara also thanked the National Insurance Crime Bureau, the investigative units of the insurance companies, the Manhattan District Attorney’s Office, and the Alabama Securities Commission for their valuable assistance with the investigation.
The case is being prosecuted by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorneys Daniel S. Goldman, Daniel S. Noble, and Joshua A. Naftalis are in charge of the prosecution. Assistant U.S. Attorney Carolina Fornos of the Office’s Money Laundering & Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Man Sentenced to Prison for Maintaining A Drug HouseRead the Press Release
Larry Watson, 58, of East St. Louis, was sentenced to a total of 60 months in prison on an indictment charging him with Maintaining Drug-Involved Premises, as well as revocation of his supervised release, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Following his prison sentence, Watson was ordered to be on federal supervised release for 3 years and to perform 200 hours of community service during those 3 years of supervised release. Watson was also ordered to pay a fine of $350, as well as a $100 special assessment.
Facts showed that on December 3, 2014, Watson pled guilty to an Indictment which charged maintaining drug-involved premises. Because Watson was on supervised release, that release was revoked and a concurrent sentence was given for the revocation.
This case was investigated by the Illinois State Police, Metropolitan Enforcement Group of Southwestern Illinois and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Deirdre A. Durborow.
Man Charge in Post Office SchemeRead the Press Release
CHARLOTTE, N.C. – A federal grand jury returned a criminal indictment today against Jimmy Lee Williams, 47, charging him with 29 felony charges in connection with a fraudulent check fraud scheme that allegedly netted more than $650,000 in postage stamps and other merchandise, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Williams is also known by several aliases including Jimmy Williamson.
Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service; John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; and B.W. Collier, Acting Director of the North Carolina State Bureau of Investigation join Acting U.S. Attorney Rose in making todays’ announcement.
According to allegations contained in the indictment, in two separate time periods between November 2010 to present, Williams used two different networks of conspirators to defraud U.S. Post Offices and other businesses in the Southeast region. According to the indictment, Williams provided counterfeit checks and fake identification to his 16 accomplices, who used them to buy postage stamps, gift cards and other merchandise from U.S. Post Offices, retail stores and warehouses throughout North and South Carolina, Virginia, Maryland and the District of Columbia.
According to the indictment, Williams and/or his accomplices purchased postage stamps and other goods with a total face value of more than $650,000 using counterfeit or fraudulent checks. In the first scheme, Williams used counterfeit checks manufactured by Ronald Carr, who was charged last year in a related case with bank fraud and defrauding the United States. In the second scheme, Williams used checks drawn on his own closed accounts and the bank accounts of accomplices he met in prison and through youth football leagues in the Concord, North Carolina area. One such accomplice, Javorick Moore, was convicted in a related case in 2014 in the Eastern District of Virginia of defrauding the post office and other offenses. In both schemes, Williams’ accomplices gave the stamps they obtained to Williams, who then sold them to an Internet company in California as well as a North Carolina pawn shop, typically for 50%-70% of the face value. Williams carried out the first scheme while released on bond for a violation of a condition of supervised release arising from a previous federal conviction.
Williams has been charged with two counts of conspiracy which each carry a maximum prison term of five years and a $250,000 fine; five counts of making & counterfeit securities which carry a maximum of 10 years in prison and a $250,000 fine per count; five counts of theft of government property which carry a maximum of 10 years in prison and a $250,000 fine per count; five counts of receiving stolen government property which carry a maximum of 10 years in prison and a $250,000 fine per count; five counts of scheme to obtain bank property which carry a maximum of 30 years in prison and a $1 million fine per count; three counts of interstate transportation of stolen property which carry a maximum of 10 years in prison and a $250,000 fine per count; and one count of concealment money laundering which carries a maximum of 20 years in prison and a $500,000 fine.
Williams is currently in federal custody. He will be ordered to appear in court on the charges in the coming days.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
USPIS, the FBI, and NC SBI investigated the case. Assistant U.S. Attorney Michael Savage, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Mississippi Man Sentenced to 37 Months in Prison for Tax FraudRead the Press Release
Jackson, Miss. – Flowers Curtis, a.k.a. Jim Curtis, 57, of Hermanville, Mississippi, was sentenced on Thursday, March 19, 2015 by Senior U.S. District Judge David C. Bramlette to 37 months in federal prison followed by three years of supervised release for committing tax fraud, U.S. Attorney Gregory K. Davis announced. Curtis was also ordered to pay restitution in the amount of $185,176.00.
Following an August, 2014 jury trial before Senior U.S. District Judge David C. Bramlette III in Natchez, Curtis was convicted of seven counts of knowingly representing a false claim to the IRS. According to court documents, from on or about Jan. 17, 2009, to on or about Feb. 15, 2012, in Claiborne County and Franklin County, Mississippi, Curtis filed income tax returns for tax years 2008 through 2011 requesting payment of refunds which he knew to be fraudulent in nature. Curtis made the claims by preparing and causing to be prepared, U.S. Individual Income Tax Returns, Form 1040, which were then presented to the Internal Revenue Service for payment.
This case was investigated by the IRS Criminal Investigation and prosecuted by First Assistant U.S. Attorney Harold Brittain.
Lewis County, WV man convicted of oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Isaac Tyler Waugh, 20, of Crawford, West Virginia, was convicted in federal court today of prescription painkiller trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Lewis County Sheriff’s Office revealed that Waugh sold oxycodone in Lewis County, West Virginia in May 2014.
Waugh pled guilty today to two counts of “Distribution of Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000.00 on each count. 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 defendant.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Kodiak Man Indicted for AssaultRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Kodiak man was indicted by a federal grand jury in Anchorage, Alaska for Assault.
Michael Ensley, 55, of Kodiak, Alaska was charged with one count of assault causing serious bodily injury, and one count of unlawfully entering U.S. Coast Guard property, Coast Guard base Kodiak, to conduct the assault.
Assistant U.S. Attorney Bryan Schroder, who presented the case to the grand jury, indicated that Ensley faces a maximum sentence of 10 years in prison, and a $250,000 dollar fine. Under the U.S. Sentencing Guidelines, the actual sentence imposed will be based on a number of factors, including the seriousness of the offense and any prior criminal history of the defendant.
The U.S. Coast Guard Investigative Service and the Alaska State Troopers 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.
Jury Convicts Man of Filing 26 False Tax Claims and Obstructing IRSRead the Press Release
HOUSTON – Kenneth Robert Bruce has been convicted on all counts as charged, to include 26 counts of willfully filing a false claim against the U.S. and for obstructing the Internal Revenue Service (IRS), announced U.S. Attorney Kenneth Magidson. The verdict was returned late yesterday after a five-day trial and approximately 2 ½ hours of deliberation.
During trial, the jury heard that Bruce prepared 26 false income tax returns or amended income tax returns claiming a total of more than $9 million in false income tax refunds. One return was for himself and 25 were for other taxpayers.
Bruce attached false IRS forms 1099-OID (Original Issue Discount) to the tax returns, falsely reporting the taxpayers had received huge amounts of income from OID and had all or nearly all of the false amounts of income withheld for federal income taxes. The huge, false amounts of withholdings formed the bases for the claims for false claims for tax refunds.
The jury also convicted Bruce on one count of corruptly endeavoring to obstruct and impede the administration of the Internal Revenue Code.
U.S. District Judge Nancy Atlas presided over trial and has set sentencing for June 9, 2015. At that time Bruce faces up to five years on each count of filing a false claim and up to three years for the obstruction. Each conviction also carries as possible punishment a $250,000 fine.
The convictions were the result of an investigation by IRS - Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorneys Charles J. Escher and Jim McAlister are prosecuting the case.
Judge Sentences Eastern Pennsylvania Man to 20 Years in Prison for Heroin Trafficking SchemeRead the Press Release
PITTSBURGH - A resident of Nazareth, Pa., has been sentenced in federal court to 20 years imprisonment followed by 10 years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence on Keith Eutsey, age 39.
According to information presented to the court, from on or about March 1, 2014 and continuing thereafter to on or about April 3, 2014, Eutsey conspired with others to distribute and possess with intent to distribute 1 kilogram or more of heroin, a Schedule I controlled substance.
Assistant United States Attorneys Amy L. Johnston and Cindy K. Chung prosecuted this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to successful prosecution of Eutsey. The task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, and the Pittsburgh Police Department. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
Jamestown Man Indicted on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an indictment charging Ismael Burgos, 53, Jamestown, NY, with attempted possession with intent to distribute cocaine. The charge carries a maximum of 20 years in prison.
Assistant U.S. Attorney Caleb J. Petzoldt, who is handling the case, stated that according to the indictment, on January 27, 2015, the defendant attempted to receive a package which investigators determined contained a quantity of cocaine.
The indictment is the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, Boston Division, and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Office.
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.
Jacksonville Man Charged with Advertising for Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Chad Jason Lansford (29, Jacksonville) with advertising for child pornography. If convicted, he faces a mandatory minimum penalty of 15 years, up to 30 years, in federal prison, and a potential life term of supervision. During his initial court appearance, Lansford was ordered detained pending his arraignment and detention hearing scheduled for March 24, 2015.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Indictment: Money Laundering Scheme Delivered $13 Million in Wages to Undocumented WorkersRead the Press Release
KANSAS CITY, KAN. – A Lawrence contractor and five other people have been charged with money laundering, bank fraud and harboring undocumented workers, said U.S. Attorney Barry Grissom. A federal indictment unsealed today alleges they were part of a scheme to convert more than $13 million in payroll checks into cash to pay crews of undocumented workers installing drywall in the Kansas City metro area.
“The indictment alleges the money flowed through an illegal pipeline,” said U.S. Attorney Barry Grissom. “At one end were contractors who wanted cheap labor. At the other end were undocumented workers who needed a job.”
Charged in the case are:
- Keith L. Countess, 55, Lawrence, Kan., owner of Plaster Masters, L.C., a drywall subcontractor for commercial and residential construction projects. The company is located at 619 N. 2nd in Lawrence.
- Marcos Lane Stubbs, 44, who is alleged to have devised the scheme to enable drywall subcontractors to use undocumented workers.
- Luis Felipe Guerrero-Guerrero, 26, who is alleged to have managed crews of workers installing drywall.
- Jose Felipe Hernandez-Calvillo, 39, who is alleged to have managed a crew of workers installing drywall.
- Mauro Papalotzi, 34, who is alleged to have managed crews of workers installing drywall.
- Isaac Gallegos, 35, who is alleged to have allowed the scheme to be operated out of his Boost Mobile telephone store. It was located in the 1300 block of Santa Fe in Olathe, Kan.
The indictment alleges the scheme revolved around another man – Jose R. Torres, 51 – who was charged and convicted in a separate case. Torres pleaded guilty to one count of harboring undocumented workers and one count of operating an unlicensed money transmitting business. He is awaiting sentencing.
The indictment alleges Gallegos and Stubbs first explained to Torres how the scheme would work and how he could make money by becoming a financial intermediary between drywall subcontractors and drywall construction crews made up primarily of undocumented workers. They told Torres that in order to pay undocumented workers someone had to serve as a financial conduit between the subcontractors and the workers. The subcontractors would contract directly with drywall crews but would use Torres as a financial intermediary.
The scheme involved Torres holding himself out as a drywall subcontractor while in fact his role was merely to receive checks from drywall construction crews, deposit the checks into his own accounts, withdraw cash from his accounts and pay the crew leaders, who in turn paid themselves and the members of the crews. Torres kept 5 percent as his fee.
To get the venture started, Torres borrowed $1,400 from Gallegos, who allowed him to work out of Gallego’s Boost Mobile store in Olathe. Drywall crews were paid weekly. The subcontractor made checks payable to “Jose R. Torres Drywall.” The checks were taken to Torres, usually at the Boost Mobile store. He would deposit the checks. Later, usually on Saturday mornings, he would withdraw cash from his accounts. He would put the cash into envelopes with the crew leaders’ names on them. The crew leaders would pick them up, usually at the Boost Mobile store.
Between October 2012 and June 2014, checks totaling about $13.2 million were deposited into Torres’ accounts at Bank of America and Wells Fargo.
Upon conviction, the crimes carry the following penalties:
- Conspiracy to harbor undocumented workers: A maximum penalty of five years and a fine up to $250,000.
- Harboring undocumented workers: A maximum penalty of five years and a fine up to $250,000 on each count.
- Conspiracy to commit money laundering: A maximum penalty of five years and a fine up to $250,000 on each count.
- Money laundering: A maximum penalty of 20 years and a fine up to $500,000 on each count.
- Conspiracy to commit bank fraud: A maximum penalty of five years and a fine up to $250,000 on each count.
- Bank fraud: A maximum penalty of 30 years and a fine up to $1 million on each count.
Homeland Security Investigations (HSI) and the Internal Revenue Service – Criminal Investigation investigated. Assistant U.S. Attorney Jabari Wamble and Assistant U.S. Attorney Brent Anderson are prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indictment: Kansas City, Kan., Woman Prepared False Tax ReturnsRead the Press Release
KANSAS CITY, KAN. – A Kansas City, Kan., woman has been indicted on charges of preparing false federal income tax returns, U.S. Attorney Barry Grissom said today.
Prayshana Washington, 27, Kansas City, Kan., was indicted Thursday in U.S. District Court in Kansas City, Kan., on 21 counts of aiding and assisting in the preparation of federal income tax returns containing false information.
The indictment cites tax returns filed for 15 individuals for tax years 2011 and 2012 containing false information on wages, dependents, and education credits and American Opportunity Credits that help pay college expenses. The Internal Revenue Service – Criminal Investigation investigated. Assistant U.S. Attorney Scott Rask and Matthew Kluge, Trial Attorney with the U.S. Department of Justice, Tax Division, are prosecuting.
OTHER INDICTMENTS
Charles Leonhardt Haupt, 31, La Cygne, Kan., was indicted Thursday on one count of conspiracy to distribute methamphetamine, one count of unlawful possession of a firearm in furtherance of drug trafficking, and two counts of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred in February and March 2015 in Linn County, Kan.
If convicted, he faces a penalty of not less than 10 years in federal prison and a fine up to $10 million on the methamphetamine charge, not less than five years (consecutive to other sentences) and a fine up to $250,000 on the charge of possessing a firearm in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on each of the other two counts. The Kansas Bureau of Investigation and the FBI investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Jonathan Luis Martin, 30, of Franklin County, Kan., and Charles Bradley Grissom, 26, of Franklin County, Kan., are charged in a superseding indictment with one count of unlawful possession of a pipe bomb. In addition, Martin is charged with one count of unlawful possession of a sawed off shotgun and one count of unlawful possession of a firearm following a felony conviction. In addition, Grissom is charged with one additional count of unlawfully making a pipe bomb and one count of unlawful possession of a destructive device (pipe bomb) after a felony conviction. The crimes are alleged to have occurred in August and December 2014 in Franklin County, Kan.
If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000 on each count. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
In a separate superseding indictment, Charles Bradley Grissom, 26, of Franklin County, Kan., is charged with one count of distributing methamphetamine, one count of unlawfully possessing firearms in furtherance of drug trafficking, one count of unlawfully possessing a firearm while he was a user on methamphetamine, and one count of unlawful possession of a firearm following a felony conviction. The crimes are alleged to have occurred in May and August 2014 in Franklin County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $1 million on the methamphetamine charge, not less than five years and a fine up to $250,000 on the charge of unlawful possession of firearms in furtherance of drug trafficking, and a maximum penalty of 10 years and a fine up to $250,000 on each of the other counts. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Petsami Phommaseng, 34, Lawrence, Kan., is charged in a superseding indictment with two counts of unlawful possession of a firearm in furtherance of drug trafficking and two counts of unlawful possession of a firearm by a user of methamphetamine. Co-defendant Susan Khampannha, Lawrence, Kan., is charged with unlawfully allowing a residence in the 2500 block of Ousdahl Road in Lawrence to be used for distributing methamphetamine. The crimes are alleged to have occurred in 2014 and 2015 in Lawrence.
Upon conviction, the crimes carry the following penalties:
Unlawful possession of a firearm in furtherance of drug trafficking: Not less than five years in federal prison and a fine up to $250,000.
Unlawful possession of a firearm by a user of methamphetamine: A maximum penalty of 10 years and a fine up to $250,000.
Maintaining a residence in furtherance of drug trafficking: A maximum penalty of 20 years and a fine up to $250,000.
The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Adam Davis, 39, Parsons, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred July 24, 2014, in Parsons, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Scott Rask is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indianapolis tax preparer indicted for fraudulent returnsRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced the indictment of a former Indianapolis resident for preparing and assisting in filing fraudulent tax returns. Doris Brown, 48, was indicted before a federal grand jury this week.
Brown operated a business called “Get Money Taxes” on the Eastside of Indianapolis where she prepared and filed clients’ tax returns, something she had been doing for over 20 years. The indictment alleges that in 2010, she prepared and filed a false federal income tax return that artificially inflated her client’s refund – causing the IRS to refund the taxpayer more than what she was actually owed. Brown is alleged to have accomplished this by exploiting the Earned Income Tax Credit, a federal tax credit designed to assist working low-to-middle income families. To inflate her client’s refund, Brown is alleged to have included false “business income” and “dependent” information on her client’s return.
Specifically, the indictment alleges that Brown purchased a child’s information from someone in the community, including name and Social Security number, for use as a “dependent” on a tax return. Brown then allegedly used the child’s information in preparing and filing the client’s tax return in 2010, knowing that the client had no relation to the child and could not claim the child as a dependent.
Additionally, the indictment alleges that Brown used the same child as a “dependent” on her own taxes that she filed in 2011, knowing that she had no relation to the child and could not claim the child as a dependent.
The IRS Criminal Investigation Division is committed to ensuring that all taxpayers pay their fair share,” said Stephen Boyd, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. “We are aggressively serving the American people by investigating criminal violations of the Internal Revenue Code. Tax fraud does not know a season – IRS Special Agents pursue criminals year round, not only at tax time. Taxpayers who might be thinking about cheating with the filing deadline looming should think twice or they will risk the consequences.”
According to Assistant United States Attorney Nicholas Linder, who is prosecuting the case, Brown could face up to six years if convicted on all counts.
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.
Hanover Postal Carrier Pleads Guilty to Destruction of MailRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Stacie Ann Stevens, age 41, of Hanover, Pennsylvania was charged with destruction of mail in a criminal information filed in U.S. District Court in Harrisburg and pled guilty before Senior United States District Court Judge William C. Caldwell on March 19, 2015.
According to U.S. Attorney Peter Smith, between July and October, 2014, Stevens, a postal carrier, began opening greeting cards and other mail and stealing the cash and gift cards contained inside. The theft was discovered after residents complained about missing or torn mail. In October 2014, Stevens was caught on surveillance video using one of the stolen gift cards at a local store. If convicted, Stevens faces one year imprisonment and a fine of up to $100,000.
Stevens has resigned from the Postal Service. The Government has filed a plea agreement with the defendant which is subject to approval of the court. As part of the agreement, Stevens agreed to pay restitution to the victims.
This case is being investigated by the United States Postal Service, Office of Inspector General and the Carroll Valley Borough Police Department and is being prosecuted by Assistant United States Attorney Daryl F. Bloom.
Anyone who believes they may be a victim or who has further information should contact Special Agent Michael Brennan, United States Postal Service, Office of Inspector General at 717-395-9515.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.