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20 March 2015
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.
Greenbrier Village Settles Lawsuit Alleging Unlawful Discrimination Against Families with Children in Violation of Fair Housing ActRead the Press Release
The Department of Justice today announced a settlement agreement between the United States, the Greenbrier Village Homeowner’s Association Inc. (Greenbrier), Gassen Company Inc. (Gassen) and an individual Gassen employee to resolve a lawsuit filed on Nov. 25, 2013. The lawsuit alleged that Greenbrier and Gassen unlawfully discriminated against residents with children by issuing and enforcing rules regarding the use of common areas at the Condominiums of Greenbrier Village. The settlement includes a commitment from Greenbrier to establish a new non-discrimination policy in accordance with the Fair Housing Act, pay a $10,000 penalty to the United States and pay $100,000 to six families that suffered as a result of the discrimination.
“The Fair Housing Act prohibits housing providers from discriminating against families with children,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “This means more than just allowing those families to live at the property. It means giving these families fair access to the common areas and amenities.”
“Housing discrimination has no place in Minnesota,” said U.S. Attorney Andrew M. Luger of the District of Minnesota. “This case reaffirms the long-held principle of our civil rights laws that families come in all shapes and sizes. Arbitrary rules that restrict the rights of children to enjoy the places where they live are not acceptable.”
“Families with children have the right to live in condos that don’t meet federal requirements to qualify as housing for older persons,” said HUD Assistant Secretary Gustavo Velasquez for Fair Housing and Equal Opportunity. “HUD is sending a clear message to homeowners associations and management companies that they must comply with the Fair Housing Act.”
According to the settlement agreement and documents filed in court, Greenbrier and Gassen allegedly engaged in a pattern of discrimination by creating and enforcing rules in a manner that prevented children from equal enjoyment of common areas and making statements that indicated a preference against families with children. The United States alleged that the defendants required children to be supervised at all times when in a common area, prohibited or unreasonably restricted children from using the common areas and selectively enforced the common area rules by issuing warnings and violation notices to residents with children, but not to adult residents engaging in the same activities.
According to the settlement agreement, at least six families suffered as a result of Greenbrier and Gassen’s alleged discrimination. Greenbrier agreed to a financial settlement with each of the families, totaling $100,000. Greenbrier will also adopt and implement a new anti-discrimination policy, its board members and staff will undergo training on the Fair Housing Act, with a specific emphasis on discrimination on the basis of familial status, and Greenbrier will pay a civil penalty to the United States.
Attorneys from the Civil Rights Division and Assistant U.S. Attorneys Bahram Samie and Ana Voss of the District of Minnesota handled this matter for the United States.
U.S. Attorney Luger thanked HUD’s Office of Fair Housing and Equal Opportunity for assisting in the investigation.
Greenbrier Village Settles Law Suit Alleging Unlawful Discrimination Against Families with Children in Violation of Fair Housing ActRead the Press Release
United States Attorney Andrew M. Luger today announced a settlement agreement between the United States, the Greenbrier Village Homeowner’s Association, Inc. (Greenbrier), and Gassen Company, Inc. (Gassen) and an individual Gassen employee to resolve a lawsuit filed on November 25, 2013. The lawsuit alleged that Greenbrier and Gassen unlawfully discriminated against residents with children by issuing and enforcing rules regarding the use of common areas at the Condominiums of Greenbrier Village. The settlement includes a commitment from Greenbrier to establish a new non-discrimination policy in accordance with the Fair Housing Act, pay a $10,000 penalty to the United States and pay $100,000 to six families that suffered as a result of the discrimination.
“Housing discrimination has no place in Minnesota,” said United States Attorney Andrew M. Luger. “This case reaffirms the long-held principle of our civil rights laws that families come in all shapes and sizes. Arbitrary rules that restrict the rights of children to enjoy the places where they live are not acceptable.”
“The Fair Housing Act prohibits housing providers from discriminating against families with children. This means more than just allowing those families to live at the property. It means giving these families fair access to the common areas and amenities,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division.
“Families with children have the right to live in condos that don’t meet federal requirements to qualify as housing for older persons,” said Gustavo Velasquez, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD is sending a clear message to homeowners associations and management companies that they must comply with the Fair Housing Act.”
According to the settlement agreement and documents filed in court, Greenbrier and Gassen allegedly engaged in a pattern of discrimination by creating and enforcing rules in a manner that prevented children from equal enjoyment of common areas and making statements that indicated a preference against families with children. The United States alleged that the defendants required children to be supervised at all times when in a common area, prohibited or unreasonably restricted children from using the common areas and selectively enforced the common area rules by issuing warnings and violation notices to residents with children, but not to adult residents engaging in the same activities.
According to the settlement agreement, at least six families suffered as a result of Greenbrier and Gassen’s alleged discrimination. Greenbrier agreed to a financial settlement with each of the families, totaling $100,000. Greenbrier will also adopt and implement a new anti-discrimination policy, its board members and staff will undergo training on the Fair Housing Act, with a specific emphasis on discrimination on the basis of familial status, and Greenbrier will pay a civil penalty to the United States.
Assistant U.S. Attorneys Bahram Samie and Ana Voss and attorneys from the Department of Justice Civil Rights Division handled this matter for the United States.
U.S. Attorney Luger thanked the Office of Fair Housing and Equal Opportunity at the United States Department of Housing and Urban Development for assisting in the investigation.Greenbrier Consent Order
Garland Man Sentenced to 96 Months in Federal Prison on Child Pornography ConvictionRead the Press Release
DALLAS — A Garland, Texas, man, Jonathan Ramirez, 26, was sentenced this week by U.S. District Judge Ed Kinkeade to 96 months in federal prison, following his guilty plea in November 2014 to one count of receipt of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
According to documents filed in the case, in June 2014, a Task Force Officer with the FBI, working online in an undercover capacity investigating the distribution of child pornography and the sexual exploitation of children, learned that a specific IP address, later linked to Ramirez, had made 78 files of child pornography available for sharing. Based in part on that discovery, the following month, law enforcement with the FBI Dallas Child Exploitation Task Force and the Garland Police Department executed a federal search warrant at Ramirez’s home. Agents seized an external hard drive and other media belonging to Ramirez. A review of the evidence revealed that the hard drive contained several child pornography videos.
Ramirez admitting using ARES P2P file sharing network to view and download images and videos of child pornography that he would then move to an external hard drive. He admitted that he had more than 175 videos and 50 images of child pornography on his computer and external hard drive.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI’s Dallas Child Exploitation Task Force and the Garland Police Department investigated. Assistant U.S. Attorney Camille Sparks prosecuted.
Gang Leader Sentenced to 151 Months in Prison for Selling HeroinRead the Press Release
CAMDEN, N.J. – An admitted leader of the “Fruit Town Brims” set of the Bloods street gang was sentenced today to 151 months in prison for dealing heroin, U.S. Attorney Paul J. Fishman announced.
Tyrone Tyson Sr., 40, of Camden, pleaded guilty in October 2014 before U.S. District Judge Joseph E. Irenas to an information charging him with distributing and possession with intent to distribute 100 grams or more of heroin. Judge Irenas imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Tyson controlled the activities of the “Fruit Town Brims” set of the Bloods in Camden. He was released in August 2013 from a 21-year state prison term for first-degree aggravated manslaughter and second-degree aggravated assault for shooting two people seated inside of a car and killing one of them. He began selling heroin in the area of North 32nd Street in Camden and sold heroin to an undercover agent twice in September 2013, just one month after being released from prison. Tyson’s criminal history also includes convictions for possession of controlled dangerous substances, second-degree aggravated assault, third-degree aggravated assault, conspiracy to distribute controlled dangerous substances, and possessing an electronic communication device in a correctional facility.
In late July 2013, members of the Camden High Intensity Drug Trafficking Area (HIDTA) Task Force conducted an investigation into Tyson’s drug trafficking activities, using surveillance, undercover officers, confidential informants, audio recordings and controlled drug purchases. The investigation revealed Tyson was selling heroin in the area of North 32nd Street in Camden and, in fact, sold heroin to an undercover law enforcement agent on two occasions.
In addition to the prison term, Judge Irenas sentenced Tyson to five years of supervised release.
U.S. Attorney Fishman credited special agents of the N.J. Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski; Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Kevin Kelly; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; the Gloucester County Prosecutor’s Office, under the direction of Prosecutor Sean F. Dalton; and the Burlington County Prosecutor’s Office, under the direction of Prosecutor Robert D. Bernardi, with the investigation leading to today’s sentencing.He also thanked officers of the Camden County Sheriff’s Department, the Delaware River Port Authority Police, the Gloucester City Police Department, the Westampton New Jersey Police Department, the Monroe Township Police Department and the Washington Township Police Department for taking part in the investigation.
The government is represented by Special Assistant U.S. Attorney Erin M. Fay of the Camden office.This case was developed through the work of the Camden Collaborative Crime Commission (C-4). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop investigative strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute the most dangerous criminals in one of our nation’s most dangerous cities.
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Defense Counsel: Scott Cohen Esq., Cherry Hill, N.J.
Four sentenced on drug trafficking chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Four individuals were sentenced in federal court in Clarksburg today on drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced.
Natasha Nicole Selmon, 34, of Shinnston, West Virginia, Jessica Earnest, 32, of Mount Clare, West Virginia, and Stephanie Michelle Furner, 35, of Salem, West Virginia, were each involved in the distribution of bath salts known as “Power X Energy Soak.” The bath salts contained a controlled substance known as “α-Pyrrolidinovalerophenone” or “α-PVP.”
Selmon and Earnest each pled guilty in November 2014 to one count of “Possession with Intent to Distribute Controlled Substance Analogue – Aiding and Abetting” Selmon was sentenced today to 18 months in prison with credit for time served since February 2015. Earnest was sentenced today to 6 months in prison.
Furner pled guilty in November 2014 to one count of “Distribution of Controlled Substance Analogue – Aiding and Abetting.” She was sentenced today to 5 months in prison.
Eric Holt, 44, of Lumberport, West Virginia, was sentenced today to three years of probation for selling crack cocaine in Harrison County, West Virginia. He pled guilty in November 2014 to one count of “Distribution of Cocaine Base - Aiding and Abetting.” Holt will serve the first four months of his probation on home detention.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Irene M. Keeley presided.
Four Shelby County Jailers Indicted for Attempting to Smuggle Narcotics into the Shelby County JailRead the Press Release
Memphis, TN – Four Shelby County jailers were arrested late yesterday and early this morning on federal charges of attempting to smuggle OxyContin into the Shelby County Jail to provide to inmates.
The four defendants are named in federal indictments returned yesterday. The indictments allege attempted possession with the intent to distribute OxyContin, a schedule II controlled substance.
“As the indictments allege, these defendants participated in a scheme to accept bribes from inmates in exchange for violating the very laws they swore to uphold,” stated United States Attorney Edward Stanton III. “These individuals falsely believed that they were above the law, and now they are facing prison time behind the bars they once were responsible for guarding.”
Those named in the indictments are:
Anthony Thomas, 27, of Memphis, TN; Marcus Green, 33, of Covington, TN; Brian Grammer, 35, of Memphis, TN; and
Torriano Vaughn, 28, of Cordova, TN.The indictments allege that the defendants devised a scheme to smuggle OxyContin, a schedule II controlled substance, into the Shelby County Jail located at 201 Poplar, Memphis, TN. The defendants would allegedly contact inmates and offer to smuggle illegal drugs into the Shelby County Jail for a predetermined amount of money. The defendants would then meet a third party affiliated with the inmate at a location within the Memphis metropolitan area. The third party would give the defendants what they believed was OxyContin and the defendants would accept the money in return. The contraband would then be smuggled into the Shelby County Jail and given to inmates.
“Over a year ago we began a long term investigation regarding drugs being smuggled into our jail,” said Shelby County Sheriff Bill Oldham. “I want to thank the Tarnished Badge Task Force for their hard work. Special Agent Todd McCall for his support, U.S. Attorney Edward Stanton and in particular Assistant U.S. Attorney Brian Coleman for his guidance and counsel with this investigation. Also, Attorney General Amy Weirich for her assistance in this investigation as well. This activity will not be tolerated. The Sheriff’s Office will attack this with all of the resources available to us. Finally, to the other employees willing to violate their oath and put jailers at risk we will get you and prosecute you to the fullest extent of the law.”
“Public corruption is the number one criminal priority of the FBI, and we will always work tirelessly with our law enforcement partners to root out those in a position of public trust who violate the law to line their own pockets,” said A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “These indictments send the message that the bad acts of a small few will not be allowed to continue and impugn the reputation of those who honorably serve the public day-in and day-out.”
The four defendants’ initial appearances will be held today. If they are convicted, they each would face a statutory maximum sentence of 20 years in federal prison.
This case was investigated by the Tarnished Badge Task Force, which is comprised of investigators from the Shelby County Sheriff’s Office, Memphis Police Department and Federal Bureau of Investigation. The government’s case is being prosecuted by Assistant U.S. Attorney Brian K. Coleman.
The charges and allegations contained in indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Four Convicted in $1.6 Million Luxury Automobile Loan Fraud SchemeRead the Press Release
CHICAGO — Three Chicago-area defendants, and a fourth defendant from Decatur, Ga., were convicted of federal bank fraud charges for engaging in a scheme to fraudulently obtain 51 luxury automobile loans totaling approximately $1.6 million without ever intending that the borrowers would purchase the high-end cars that they claimed to be buying. As a result, various credit union lenders, including Credit Union 1, Great Lakes Credit Union, Navy Federal Credit Union, Pentagon Federal Credit Union, and Sherwin-Williams Credit Union, incurred losses totaling at least $853,000. Two of the four charged defendants were convicted today by a jury in U.S. District Court Andrea R. Wood’s courtroom. Two additional defendants involved in the scheme pled guilty before trial.
The two men convicted at trial yesterday were PRECIOUS W. HOUSE, 47, of Chicago, the president of Rolling Auto, Inc. of Plymouth, Ind., and XPress Automotives of Chicago, two wholesale auto dealerships that purported to be selling many of the autos. HOUSE was convicted of five counts of bank fraud. Also convicted at trial was BRIAN K. HUGHES, 41, of Homewood, the president of Hughes Corporate Consulting. HUGHES was convicted of four counts of bank fraud and one count of making false statements on a loan application. The defendants’ sentencings were set for June 2015.
Two remaining defendants pled guilty: KEITH B. FOSTER, 46, of Harvey, pled in October 2014 to one count of making false statements on a loan application. FOSTER was sentenced to 12 months imprisonment and has been ordered to surrender April 6, 2015. CRYSTAL WILLIAMS, 31, of Decatur, Georgia, pled guilty in September 2014 to one count of bank fraud and will be sentenced at a later date.
According to court records, between February and November 2013, defendants HOUSE and HUGHES recruited individuals seeking loans and agreed to find loans for them in exchange for a fee of 20 to 30 percent of the loan. The defendants obtained at least 36 automobile loans of the 51 total sought on behalf of the applicants, and the defendants fraudulently obtained approximately $1.12 million of the total $1.6 million for which they applied.
In order to obtain the loans, the defendants made, and caused the loan applicants to make, false representations in documents such as loan applications, vehicle purchase orders, and verifications of employment. The false statements concerned the applicants’ income, employment, credit history, intent to use the loan proceeds to purchase automobiles, and the existence of contracts obligating the borrowers to purchase vehicles from defendant HOUSE and his companies, Rolling Auto and XPress Automotives. The purchase orders falsely represented that the loan applicants had contracts to purchase from HOUSE’s dealership various luxury autos made by BMW, Chevrolet, Jaguar, Lexus, Mercedes-Benz, Nissan, and Porsche. If the individual applicants refused to cash checks obtained as part of the scheme, defendant HUGHES threatened them with civil lawsuits and criminal prosecutions. Defendant HOUSE then deposited the loan proceeds into bank accounts he controlled in Illinois, California, and Georgia.
The indictment was previously announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The Government was represented by Assistant U.S. Attorneys Christopher R. McFadden and Sunil Harjani.
Each count of bank fraud and making false statements on loan applications carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. The Court may impose an alternate fine totaling twice the loss to any victim or twice the gain to the defendant, whichever is greater. The Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
Former U.K. Rabobank Trader Appears in U.S. Court to Face LIBOR Interest Rate Manipulation ChargesRead the Press Release
The former global head of liquidity and finance for Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) has waived extradition and appeared in U.S. federal court today for an arraignment on charges related to his alleged role in a scheme to manipulate the U.S. Dollar (USD) and Yen London InterBank Offered Rate (LIBOR), a benchmark interest rate.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.
Anthony Allen, 43, of Hertsfordshire, England, appeared in the Southern District of New York and pleaded not guilty to a superseding indictment charging him with conspiracy to commit wire and bank fraud and substantive counts of wire fraud. The court released Allen on a $500,000 bond and set a trial date for Oct. 5, 2015.
According to the superseding indictment, at the time relevant to the charges, LIBOR was an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believed they would be charged if borrowing from other banks. It serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for U.S. Dollar and Yen currency for a specific maturity was the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.
According to allegations in the superseding indictment, Allen, who was Rabobank’s Global Head of Liquidity & Finance and the manager of the company’s money market desk in London, put in place a system in which Rabobank employees who traded in derivative products linked to USD and Yen LIBOR regularly communicated their trading positions to Rabobank’s LIBOR submitters, who submitted Rabobank’s LIBOR contributions to the BBA. Rabobank traders entered into derivative contracts containing USD or Yen LIBOR as a price component and they allegedly asked others at Rabobank to submit LIBOR contributions consistent with the traders’ or the bank’s financial interests, to benefit the traders’ or the banks’ trading positions.
The charges in the superseding indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The investigation is being conducted by special agents, forensic accountants and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by the Criminal Division’s Fraud Section and the Antitrust Division. The Criminal Division’s Office of International Affairs has provided assistance in this matter.
The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the investigation. The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of conduct at Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.
Former SSA Employee Sentenced to 21 Months in Federal Prison for Role in Conspiracy to Defraud the SSARead the Press Release
DALLAS — A former employee of the Social Security Administration (SSA) was sentenced this morning for his role in a conspiracy to defraud the SSA, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Carwin Shaw, 33, of Arlington, Texas, was sentenced to 21 months in federal prison and ordered to pay $78,165 in restitution. He pleaded guilty in December 2014 to one count of conspiracy to commit theft of government funds. He must surrender to the Bureau of Prisons on April 28, 2015.
Shaw, along with co-defendants Amanda Johnson, 35, April Harvey, 36, and Lanusha Lemmons, 25, all of Arlington, were each indicted in May 2014 on one count of conspiracy to defraud the U.S. and one count of theft of government funds. Lemmons pleaded guilty to her role and was sentenced earlier this month to a two-year term of probation. A trial date of April 27, 2015, is set for defendants Johnson and Harvey.
According to documents filed in the case, Shaw, who worked as a Service Representative in the SSA’s Mid-Cities Field Office, located in Grand Prairie, Texas, had access to the SSA’s electronic databases. He admitted that he made agreements with co-conspirators to illegally obtain SSA funds by manipulating SSA’s electronic databases to achieve multiple objectives.
In some instances, for example, he manipulated the verified income attributed to Supplemental Security Income beneficiaries that resulted in the issuance of larger payments than authorized, the issuance of payments when none were due, and the removal of legitimate overpayments posted to beneficiary’s record. Shaw further admitted using the SSA’s electronic systems that interface with the U.S. Treasury Department to issue duplicate checks to beneficiaries when only one check was due. Shaw would cut additional checks to the co-conspirators by alleging their initial check had been lost or stolen, split the second check with the co-conspirator and then access the system and waive the overpayment so that it would not be recovered from any future benefits. Each co-conspirator was the representative payee for one minor or otherwise incompetent Social Security beneficiary.
The loss to the SSA as a result of all of Shaw’s relevant conduct is approximately $78,165.
The case was investigated by the SSA’s Office of the Inspector General. The case is being prosecuted by Special Assistant U.S. Attorney Nicole Dana.
Former Lafayette County Treasurer/tax Collector Sentenced to 24 Months for Embezzlement of Public FundsRead the Press Release
Texarkana, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Keesha Rose, age 37, of Lewisville, Arkansas, was sentenced today to 24 months in prison followed by three years of supervised release on one count of Theft Concerning Programs Receiving Federal Funds. Rose served as the County Treasurer and Tax Collector for Lafayette County. She was also ordered to pay restitution in the amount of $282,036.97. The Honorable Harry F. Barnes presided over the sentencing hearing in the United States District Court in Texarkana.
U. S. Attorney Eldridge stated, “The conduct by this public official is shameful and a disgrace to all other public officials who are dedicated to the service to which they have been elected; such an abuse of public trust is offensive to other honest elected officers that are loyal to their positions. We remain committed to investigating and prosecuting those who embezzle public funds throughout the Western District of Arkansas.”
“Arkansas deserves and is blessed with so many public servants who do the right things for the right reasons. However, corrupt public officials erode the trust necessary for our democracy to function,” stated Special Agent in Charge David T. Resch with the Little Rock FBI, “We appreciate our partnership with the United States Attorney’s Office and the Arkansas State Police as we continue to confront public corruption as a top priority in Arkansas.”
According to court records, Keesha Rose was elected as Treasurer and Tax Collector for Lafayette County, Arkansas in November, 2010 and was responsible for collection and administration of all funds collected and disbursed on behalf of Lafayette County. Lafayette County received benefits in excess of $10,000 under a Federal program for the both 2011 and 2012. On May 31, 2013, The Arkansas Division of Legislative Audit reported that a comparison of cash receipts to cash bank deposits revealed that $162,275.00 was not deposited in the county’s bank accounts by Rose for a period of January 1, 2011 through September 20, 2012. The auditors noted numerous issues with accounting processes and recordkeeping that were consistent with the embezzlement of funds. In addition to the $162,275.00, auditors determined that for the time period between September 20, 2012 and November 7, 2013, an additional $81,618 in public funds was embezzled by Rose, bringing the total amount known prior Ms. Rose’s change of plea to $243,893.00. Rose pleaded guilty to the charge on October 29, 2014. Subsequent to Ms. Rose’s change of plea, auditors determined that for the time period between November 7, 2013 and April 30, 2014, and additional $38,143.97 in public funds was also embezzled, bringing the total amount of embezzled funds to $282,036.97.
This case was investigated by the Federal Bureau of Investigation and the Arkansas State Police. Assistant U. S. Attorney Jonathan Ross prosecuted the case for the United States.
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Related court documents may be found on Public Access to Electronic Records [email protected]
Former HPD Officer Ordered to Prison for Drug Conspiracy ConvictionRead the Press Release
HOUSTON - Former Houston Police Department (HPD) officer Marcos E. Carrion has been ordered to federal prison for his role in a drug conspiracy, announced U.S. Attorney Kenneth Magidson. Carrion entered a guilty plea to the charge Thursday, Oct. 9, 2014.
Today, U.S. District Judge Sim Lake, who accepted the plea, handed Carrion a total sentence of 70 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, Judge Lake noted that Carrion violated a position of trust by agreeing to escort cocaine loads in the city.
On April 16, 2014, a Houston grand jury returned a sealed indictment charging Carrion with conspiring with others to possess with the intent to distribute five or more kilograms of cocaine from mid-2013 through April 2014. Carrion, 37, a five-year HPD veteran, had been assigned to the Southwest Patrol Division prior to resigning from his position.
As part of his plea agreement, Carrion admitted to providing security for a narcotics transaction which involved 10 kilograms of cocaine. During negotiations, Carrion stated he was an HPD officer and that he “had a lot to lose,” but ultimately agreed to providing security in exchange for $2,500. After being paid, Carrion falsely claimed another officer was present and demanded another $2,500.
Carrion also agreed to provide security for future transactions which were to involve 20-30 kilogram loads of cocaine. He claimed he could arrange for additional uniformed officers to assist whom he would pay and instruct to just show up, not ask questions and do what he said.
Carrion was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.The Drug Enforcement Administration, Houston Police Department and FBI investigated. Assistant U.S. Attorneys Mark E. Donnelly and Shelley J. Hicks are prosecuting the case.
Former FBI Agent Charged with Obstructing Justice, Falsifying Records and Possessing HeroinRead the Press Release
A Maryland man was charged today in the District of Columbia with crimes arising out of his tampering with substantial quantities of drug evidence while working as a Special Agent with the Federal Bureau of Investigation (FBI), announced U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania. The 64-count information charges Matthew Lowry with 20 counts of obstruction of justice, 18 counts of falsification of records, 13 counts of conversion of property, and 13 counts of possession of heroin.
Matthew Lowry, 33, of Upper Marlboro, Maryland, was assigned to the Washington, D.C. Field Office (WFO), and was a member of the Cross-Border Task Force (CBTF). As a member of the CBTF, the defendant participated in several large-scale investigations that resulted in numerous seizures of significant quantities of narcotics, including heroin. According to the information, in 2013 and 2014, the defendant tampered with heroin evidence seized during several of his investigations. As those investigations occurred within the District of Columbia and the districts surrounding it, those offices have been recused by the Department of Justice, and the prosecution is being conducted by the U.S. Attorney’s Office of the Eastern District of Pennsylvania.
In several instances, it is alleged that the defendant went to the WFO’s Evidence Control Center (ECC) and removed seized heroin from evidence, writing on a chain of custody record a false explanation for his taking of the evidence. The information alleges that over a period of several weeks or months, the defendant kept the heroin in his car and periodically ingested it. Before returning the heroin to the ECC or bringing it to a laboratory for testing, the defendant allegedly added to the heroin a measured amount of a cutting agent, either the supplement Creatine or the laxative Purelax, in order to account for the weight discrepancy resulting from his illegal usage; placed the altered heroin into a new evidence bag, on which he placed a new sticker signifying that the evidence bag had been sealed; copied the content written on the original sealing sticker to the new sealing sticker, forging the names or signatures of FBI agents who purportedly witnessed his sealing of the evidence; peeled off a barcode sticker from the original evidence bag and applied it to the new bag; and disposed of the original evidence bag and sealing sticker.
The defendant also participated in many undercover, controlled purchases of heroin from targets in his investigations. Following several of these transactions, the defendant, rather than check the heroin into evidence as required, is alleged to have kept the heroin in his car for a period of several weeks or months, during which he periodically ingested it. Before checking the heroin into the ECC, it is alleged that the defendant added a cutting agent to account for the weight discrepancy resulting from his ingesting the heroin; placed sealing stickers on evidence bags and filled out all requested information except for the seizure and sealing dates, which he left blank; requested that another agent, who had no knowledge of the defendant’s improper motives, sign as the witnessing official the undated sealing stickers; and wrote on the sealing stickers the accurate date on which the drugs were seized but falsely indicated that the evidence was sealed that same day.
Additionally, on one occasion, the defendant participated in an undercover, controlled purchase of heroin from a target, and in lieu of turning the heroin into evidence and documenting its seizure, the defendant allegedly ingested the heroin and never turned it into evidence.
The FBI referred this matter to the Department of Justice Office of the Inspector General (DOJ-OIG), which initiated the investigation. The investigation has not identified any criminal conduct by other agents
If convicted, the defendant faces at least 87 months in prison under the advisory guideline range calculated by the government, three years of supervised release, a fine of up to $16 million, and a $6,400 special assessment.
The case was investigated by the DOJ-OIG, with assistance from the FBI as requested by the DOJ-OIG. The case is being prosecuted by Assistant U.S. Attorneys Kevin R. Brenner and Maureen McCartney.
An information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Lowry Information
Former Employee Charged with Embezzling over $2.5 Million from Marietta, Ga., Hair Products CompanyRead the Press Release
ATLANTA - Veria Fields, a former employee of Bronner Bros., Inc., has been arraigned on nine counts of mail fraud relating to theft from her former employer. Fields was indicted by a federal grand jury on March 4, 2015.
“Small businesses depend on their finance and accounting personnel to safeguard the financial health of the company and its employees,” said Acting U.S. Attorney John Horn. “This defendant is charged with violating this trust and helped herself to millions of the company’s dollars over several years.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The loss amount in this case is significant and, with the federal indictment and arrest of Ms. Fields, the former Accounts Receivable Manager at the victim company, this matter will have its day in court.”
According to Acting U.S. Attorney Horn, the charges and other information presented in court: Fields was the Accounts Receivable Manager for Bronner Bros. Inc., a wholesaler of African American hair care products headquartered in Marietta, Georgia, Fields also informally performed customer service functions for the company. From 2006 through 2010, Fields allegedly embezzled over $2.5 million from Bronner Bros. by offering customers unauthorized discounts of five to ten percent in exchange for cash payments made directly to her. Thereafter, customers continued to submit orders with the expectation that they would receive the cash discounts promised by the defendant. To conceal the unauthorized discounts and her theft from Bronner Bros, Fields allegedly used her position as Accounts Receivable Manager to create false and fraudulent accounting entries.
Fields, 54, of Atlanta, Georgia, was arraigned on March 19, 2015, before U.S. Chief Magistrate Judge Janet F. King.Members of the public are reminded that the indictment contains only charges. The defendant is presumed innocent of the charges and it will be the government's burden to prove the defendant's guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Defense Contractor Pleads Guilty to Paying Bribes in IraqRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Ankana Pecault Stovall (47, Riverview) has pleaded guilty to an indictment charging her with conspiracy to pay gratuities and supplement the salary of members of the U.S. military in order to gain favorable contracting treatment in Iraq. She faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set. The indictment also notifies Stovall that the United States is seeking a money judgment in the amount of $19,500.
Two co-conspirators, U.S. Army Master Gunnery Sergeant Timothy Lerone Benton (Virginia) and U.S. Army First Sergeant Richard Allen Smith (Delaware), previously pleaded guilty in federal court in Tampa to accepting gratuities from Stovall during their time in Iraq in exchange for preferential contracting treatment for Stovall and her associated contracting companies.
According to court documents, between June 2007 and October 2009, Stovall was working for a defense contractor in Iraq and operating her own Riverview-based contracting company, Logistics Support and Services Company (“LSS”), which were both doing business with the U.S. military on Camp Liberty in Baghdad. Stovall was involved in a personal and financial relationship with Benton, who used his official position in Iraq to benefit Stovall, LSS, and Stovall’s employer by escorting trucks loaded with furniture, gravel, and other supplies through Camp Liberty to circumvent the required security procedures on the base. For his assistance, Stovall would pay Benton cash. Benton also assisted Stovall and LSS in receiving cash purchase orders for supplies through his unit at Camp Liberty, including two 47-inch LCD televisions for $6,400 and 100 digital cables for $5,500. After Benton returned from Iraq, Stovall used LSS funds to pay for a vacation to the Bahamas for her and Benton. Later that year, she gave Benton a $5,000, no-interest loan. In early 2010, Benton used his official position at the Pentagon to draft two official memoranda sponsoring and endorsing Stovall and LSS to conduct business on Camp Liberty.
In addition to the payments to Benton, Stovall regularly made cash payments in the amount of $3,000 to Smith on behalf of her employer. Smith was the U.S. government employee in charge of the motor pool on Camp Liberty and was responsible for assigning military vehicle maintenance work to contractors. On multiple occasions, Stovall made cash payments to Smith to ensure that her employer would receive favorable treatment and contracts to perform work at the motor pool.
This case was investigated by the Defense Criminal Investigative Service, the United States Army – Criminal Investigation Command, and the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Josephine W. Thomas.
Former DeKalb County Commissioner Sentenced for Stealing County FundsRead the Press Release
ATLANTA – Elaine Boyer, former Commissioner of District 1 in DeKalb County, Georgia, has been sentenced for embezzling county funds and misusing her government credit card.
“Elaine Boyer helped herself to over $75,000 in taxpayer funds which were intended to benefit and improve DeKalb County,” said Acting U.S. Attorney John A. Horn. “Instead, she used the money for things like her personal travel and for purchases at high-end department stores. The citizens of DeKalb County deserve to be represented by honest elected officials who put the interests of the public first.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The sentencing of former Dekalb County Commissioner Boyer concludes a lengthy career serving the people of Dekalb County. In spite of her otherwise admirable service to her community, Ms. Boyer lost her way and crossed the line of the law, resulting in the end of her public service career and time in federal prison to reflect on it all.”
According to Acting U.S. Attorney Horn, the charges, and other information presented in court: In DeKalb County, Georgia, the Board of Commissioners (“BOC”) serves as the legislative branch of the DeKalb County Government. The BOC is comprised of seven part-time commissioners, who are elected to serve four-year terms. Each of the seven Commissioners is responsible for the management of their respective offices, which includes controlling the offices’ budget and hiring staff members, contractors, and consultants. In recent years, the operating budget for a Commissioner’s office has been approximately $250,000 per year. The Commissioners may use their budget only for county-related business.
In 1992, Ms. Boyer began serving as the Commissioner of District 1, which served citizens in north DeKalb County, including in Brookhaven, Dunwoody, Tucker, and Smoke Rise, Georgia. Among other responsibilities, Ms. Boyer sat on the BOC’s Finance, Budget, and Audit Committee and was the Chairwoman of the Employee Relations and Community Services Committee. Although Boyer’s term of office did not expire until 2016, she resigned on August 25, 2014, the day before she was charged in this case.
In September 2009, as the Commissioner of District 1, Ms. Boyer retained an individual (“Advisor”) supposedly to assist her with government consulting and advisory duties on issues that affected her constituents. From September 2009 to November 2011, false invoices were submitted to Ms. Boyer’s office for consulting services purportedly rendered by the Advisor. In fact, the Advisor performed no services for Ms. Boyer, District 1 constituents, or DeKalb County. Ms. Boyer used the false invoices as a basis to authorize payments to the Advisor. Based on requisition requests from Ms. Boyer, DeKalb County issued approximately 35 checks to the Advisor for consulting services that were never performed. In total, DeKalb County paid the Advisor approximately $80,000, believing that legitimate services had been performed for the county.
After being paid by DeKalb County, the Advisor funneled approximately 75% of the money received from DeKalb County into Ms. Boyer’s personal bank account. Between September 2009 and November 2011, the Advisor deposited approximately $60,000 in DeKalb County funds into Ms. Boyer’s personal bank account (while retaining the remainder of the money). In turn, Ms. Boyer used the money deposited into her account to pay personal expenses, including purchases at hotels and high-end department stores.
Additionally, in her capacity as a Commissioner, DeKalb County issued Ms. Boyer a Visa Purchasing Card (“P-Card”) to make county-related purchases. On January 14, 2010, she signed a Cardholder Users’ Agreement stating she would not use the P-Card to make personal purchases.
From October 2010 to February 2014, Ms. Boyer made more than 50 personal purchases on her P-Card, including purchasing airline tickets and hotel rooms for herself and her family for personal travel. In total, she made over $15,000 worth of purchases on her P-Card for personal goods and services.
On September 3, 2014, Elaine Boyer, 58, of Stone Mountain, Georgia, pleaded guilty to one count of conspiring to commit mail fraud and one count of wire fraud. Today, Boyer was sentenced to one year, two months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $87,350.
On February 20, 2015, Elaine Boyer’s husband, John Boyer, 62, of Stone Mountain, Georgia, also pleaded guilty to one count of conspiring to commit mail fraud. Mr. Boyer is scheduled to be sentenced on May 6, 2015, at 2:00 p.m., before the Honorable Orinda D. Evans.
This case is being investigated by Federal Bureau of Investigation.
Assistant United States Attorneys Jeffrey W. Davis and Kurt R. Erskine are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former D.C. Goverment Employee Pleads Guilty to Using Government-Issued Credit Cards for Personal PurposesRead the Press Release
WASHINGTON – Terrell McCray, 31, a former employee of the District of Columbia Department of Fire and Emergency Medical Services (DCFEMS), pled guilty today to using government-issued credit cards to make purchases over $4,000 in gasoline for personal vehicles, announced U.S. Attorney Ronald C. Machen Jr. and Robert C. Erickson, Deputy Inspector General of the U.S. General Services Administration (GSA).
McCray was arrested in January 2015, following an investigation by the Office of the Inspector General for the U.S. General Services Administration (GSA). He had been a ticket writer in the DCFEMS Fleet Division.
McCray, of Washington, D.C., pled guilty in the Superior Court of the District of Columbia to a charge of first-degree misdemeanor fraud. The Honorable Neal E. Kravitz scheduled sentencing for May 20, 2015. The charge carries a statutory maximum of 180 days in jail and/or financial penalties. The plea agreement calls for McCray to make full restitution.
In a related investigation, Kimberley Pinkney, 45, of Washington, D.C., pled guilty on March 9, 2015 to second-degree felony fraud. Pinkney, a former inspector with DCFEMS, admitted using her government-issued credit card to purchase over $11,000 in gasoline for her personal vehicle. She is to be sentenced on May 5, 2015. She also agreed to make full restitution.
According to a proffer of facts submitted at today’s plea hearing, GSA administers the leases of over 150,000 government vehicles, including 41 to DCFEMS. Each vehicle is assigned a credit card to be used to purchase fuel and pay for other normal vehicle-related expenses, such as car washes and routine maintenance. GSA pays charges on the cards with federal funds.
McCray’s actions came to light in the fall of 2014 during a proactive review of purchases associated with the government credit cards. Investigators flagged suspicious activity. McCray was interviewed by GSA investigators in December 2014 after he was observed that month selling gas to fuel two Mercedes Benz sedans with Maryland license plates. The investigation also determined he fueled his own Jaguar and other persons’ vehicles on multiple occasions.
McCray acknowledged to investigators that he used government cards for personal use, and stated that he also sold gas at discounts to friends and acquaintances. A review of purchases made between Aug. 16, 2014 and Dec. 12, 2014, showed that the total fraud generated by his use of these cards as $4,170.
In announcing the plea, U.S. Attorney Machen and Deputy Inspector General Erickson commended those who investigated the case, including the team led by Special Agent in Charge Gerald Garren. They also expressed appreciation for the assistance provided by the Internal Affairs Unit and the command staff of the D.C. Department of Fire and Emergency Medical Services. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kristy Penny and Assistant U.S. Attorney Stephanie G. Miller, who is prosecuting the case.
Former Contract Employee of Radford Army Ammunition Plant Charged with Sexual AssaultRead the Press Release
ROANOKE, VIRGINIA – A former contract employee at the Radford Army Ammunition Plant has been indicted by a federal grand jury sitting in the Western District of Virginia in Roanoke on sexual assault charges.
Joshua Linkous, 39, of Dublin, Va., has been charged with one count of aggravated sexual abuse by force, three counts of abusive sexual contact and five counts of attempted aggravated sexual abuse by force.
According to the indictment, Linkous is alleged to have sexually assaulted AV1 [Adult Victim #1] on July 27, 2014 through the penetration of the genital opening by hand or finger. Linkous is also accused of attempting to sexually assault AV1 in March or April of 2014 and again in early 2013. All of these actions took place within the boundaries of the Radford Army Ammunition Plant.
In addition, Linkous is charged with attempting to sexually assault AV2 [Adult Victim #2] in or around May 2014 and again in or around June 2014. Linkous is also charged with abusive sexual contact against AV2 for the June 2014 incident. All of these actions took place within the boundaries of the Radford Army Ammunition Plant.
The indictment also alleges that between August 2010 and December 2011, Linkous attempted to sexually assault AV3 [Adult Victim #3]. The defendant is also charged with abusive sexual contact for the incident between August 2010 and December 2011.
If convicted, Linkous faces a maximum possible penalty of life in prison.
The investigation of the case was conducted by the United States Army’s Criminal Investigation Division, the Federal Bureau of Investigation, and the Defense Criminal Investigative Service. Assistant United States Attorneys Erin Kulpa and Laura Rottenborn will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Former Bradenton Housing Authority Project Director Pleads Guilty to Theft of Government FundsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Stephany West (51, Bradenton) today pleaded guilty to theft of federal funds. She faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, from June 2, 2008, until September 19, 2013, West, a/k/a “Stephany Shaw,” was employed as the Project Director of the Bradenton Housing Authority (“BHA”). The BHA is a local housing authority agency of the City of Bradenton and received $10,000 or more in federal funds from the United States Department of Housing and Urban Development.
Between September 2010 and September 2013, West was routinely absent from the BHA and engaged in non-BHA activities during work hours. She failed to take annual or sick leave for these absences, and accepted her regular salary for work. From September 2010 through September 2012, West was absent and engaged in non-BHA activities at least 25 percent of the time. Between September 2012 and September 19, 2013, West was absent and engaged in non-BHA activities approximately 50 percent of the time. In total, West stole and knowingly converted to her own use approximately $73,783. from the BHA by taking salary, benefits, and bonuses that she had not earned and to which she was not entitled. She stole another $30,767.60 by cashing out unused annual and sick leave, which she should have otherwise used while spending work hours attending to personal affairs. Thus, West’s actions caused a total loss to the BHA of approximately $104,550.
This case was investigated by the U.S. Department of Housing and Urban Development - Office of Inspector General, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Bradenton Police Department. It is being prosecuted by Assistant United States Attorney Jennifer L. Peresie.