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Friday 30 January 2015
DEA Augments Tactical Diversion Squad with Officers from Santa Fe and Albuquerque Police DepartmentsRead the Press Release
ALBUQUERQUE – The Albuquerque office of the DEA has expanded its Tactical Diversion Squad (TDS) to include two Santa Fe Police Department officers and an Albuquerque Police Department officer. DEA’s TDSs combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The expansion of the TDS in Albuquerque was undertaken as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, which was launched earlier this month to address New Mexico’s heroin and opioid crisis. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center working in partnership with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in Mexico. The Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning.
“New Mexico’s opioid addiction and overdose death rates have been at or near the top of the national scale for years,” said U.S. Attorney Damon P. Martinez. “We are pleased to have local officers from communities hardest hit by this crisis join our efforts to take on this deadly epidemic.”
Assistant Special Agent in Charge Sean R. Waite said, “DEA’s efforts in New Mexico are impossible without the support of our local partners. We value the relationships we have developed with the Santa Fe and Albuquerque Police Departments. Together we will continue to attack heroin and opioid trafficking in our communities.”
“The Santa Fe Police Department is committed to being part of this multi-agency response to a vicious epidemic that has trapped too many New Mexicans in a vicious cycle of drugs, criminality, incarceration and death,” said Santa Fe Police Chief Eric Garcia. “We will work aggressively with our partners on the DEA’s Tactical Diversion Squad to keep our streets safe and our children free from drug addiction and abuse.”
“Heroin deaths have reached epidemic levels in the state,” said Albuquerque Police Chief Gorden E. Eden. “The Drug Enforcement Agency has expanded its tactical diversion task force to target heroin dealers and the diversion of licit pharmaceuticals. This expanded partnership will also focus on prevention, education and restoring our communities.”
The newly-expanded TDS will focus its efforts on the prevention and education and law enforcement components of the HOPE Initiative. On the law enforcement front, the TDS will investigate violations of the Controlled Substances Act and other laws pertaining to the diversion of controlled substance pharmaceuticals. It will prioritize investigating, disrupting and dismantling individuals and organizations involved in diversion schemes (e.g., “doctor shopping,” prescription forgery rings, and doctors or pharmacists who illegally diverts prescription controlled substances. The TDS’s efforts on the prevention and education front will include educating medical professionals about how prescription drug trafficking and abuse contributes to New Mexico’s heroin and opioid epidemic, and making presentations on the dangers of prescription drug abuse to teenagers and their parents.
Customs and Border Protection Officer SentencedRead the Press Release
SYRACUSE, NEW YORK – Richard S. Hartunian, the United States Attorney for the Northern District of New York announced that Todd L Tyo, 50 of Heuvelton, New York, was sentenced yesterday in United States District Court in Utica to a one year term of probation and a $100 fine in connection with his conviction after a jury trial for two felony violations of making false entries in a U.S. Customs and Border Protection cash register computer at the Alexandria Bay Port of Entry. Tyo, a uniformed U.S. Customs and Border Protection Officer, made the false entries in connection with his receipt of cash from commercial trucks entering the United States from Canada in April and July of 2011.
This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General (Buffalo, New York and Philadelphia, Pa. offices). The case was prosecuted by Assistant U.S. Attorney Richard R. Southwick.
Conspirators in Baltimore Bank Fraud Scheme Sentenced to PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Ramon Ingram, age 28, of Baltimore, today to four years in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft. Judge Bennett also ordered Ingram to pay restitution of $191,958.39.
Judge Bennett sentenced co-defendants Quincy Jackson, age 27, and Marlon King, Jr., age 28, both of Baltimore, each to two years in prison, followed by five years of supervised, and ordered them to pay restitution of $225,626.32. Jackson was sentenced on January 26, 2015 and King was sentenced on January 29, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement and other court documents, from April 2012 through December 2013, Ingram conspired with co-defendants Quincy Jackson and Marlon King, Jr., to defraud financial institutions by using credit cards issued to customers of the financial institution, without the customers’ knowledge or permission, to purchase gift cards and other items at various retail locations. Ingram recruited Jackson and King to participate in the scheme.
For example, on April 15, 2012, Ingram and Jackson entered a Rite Aid located on Shipping Place in Baltimore County, where Ingram used a Susquehanna Bank card and a USAA Bank credit card, each in the name of a different victim, to make purchases. On June 19, 2012, Ingram and Jackson entered a Rite Aid located on W. Lexington Street in Baltimore, and Ingram fraudulently used a Discover credit card and a VISA credit card to make purchases.
On October 1, 2013, Jackson and King went to a department store located on Reisterstown Road in Baltimore, and fraudulently used a gift card to make purchases. The gift card was purchased at a Rite Aid located on Padonia Road in Baltimore County, using a Susquehanna credit card belonging to another individual, without the victim’s knowledge or permission.
According to court documents, Ingram and his co-conspirators used the identities of over 250 victims to make fraudulent purchases. The total loss caused by the conspiracy to Rite Aid was $191,958.39.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Baltimore Police Department and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary Myers, who are prosecuting the case.
Columbus Man Sentenced to 15 Years for Sex Trafficking of ChildrenRead the Press Release
COLUMBUS – Valerio Alexander, 46, of Columbus, was sentenced in U.S. District Court to 15 years in prison for human trafficking.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon Miller, Special Agent in Charge, Homeland Security Investigations (HSI), Ohio Attorney General Mike DeWine, Ohio State Highway Patrol Commander Paul Pride and Columbus Police Chief Kim Jacobs announced the sentenced handed down by U.S. District Judge Edmund A. Sargus Jr.
According to court documents, a 16-year-old female was taken to Alexander’s home for the purpose of exchanging sex for drugs by co-defendant Thomasina Howard. Alexander suggested he could provide them food, shelter and drugs, in exchange for Howard and the victim engaging in prostitution for Alexander’s financial benefit.
Alexander took photographs of the child and caused the pictures to be used as advertisements for prostitution on Backpage.com. Alexander instructed the victim to stay at a Columbus apartment he provided and offered her condoms and marijuana to “calm her nerves.” The victim followed Alexander’s instructions and engaged in sexual activity for money.
Alexander pleaded guilty on January 18, 2014 to sex trafficking of children.
“The defendant caused a 16-year-old female to engage in a commercial sex act, by taking sexually suggestive photographs of her, causing those photographs to be placed in advertisements for prostitution, and instructing her how to speak to prostitution clients that called in response to the advertisement,” Assistant U.S. Attorney Heather Hill told the court.
U.S. Attorney Stewart commended the investigation by HSI, Columbus Police and Ohio Attorney General DeWine’s Ohio Organized Crime Investigations Commission.
U.S. Attorney Stewart also commended Assistant U.S. Attorneys Heather Hill and Deborah Solove, who prosecuted the case.
Coatesville Woman Charged with Bilking Comcast Employee Retirement AccountsRead the Press Release
PHILADELPHIA - Laura Wayne, 37, of Coatesville, Pennsylvania, was charged today by information with seven counts of wire fraud, announced United States Attorney Zane David Memeger. While employed as an administrator of employee retirement accounts at the Comcast Corporation, Wayne created dummy retirement accounts and used the accounts to defraud Comcast of approximately $124,876.
According to the information, Wayne created dummy accounts that appeared to be 401(k) retirement accounts managed by Fidelity Company for the benefit of Comcast employees; used the names of non-employees and their actual birthdates and social security numbers to create fraudulent employee 401(k) accounts; entered dollar amounts in the dummy accounts on the spreadsheets she sent to Fidelity so that Comcast would put money into the dummy employee accounts; and created fake on-line Fidelity accounts so that she could access the dummy employee accounts. It is further alleged that between April 2013 and January 2014, Wayne used the fake on-line accounts that she had created to direct that Fidelity transfer funds from the dummy accounts to bank accounts that she controlled.
If convicted, the defendant faces a maximum possible sentence of 140 years of in prison, three years of supervised release, restitution, a $1.75 million fine, and a $700 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Laurie Magid.
UNITED STATES ATTORNEY'S OFFICE Contact: PATTY HARTMAN
EASTERN DISTRICT, PENNSYLVANIA Media Contact
Suite 1250, 615 Chestnut Street 215-861-8525
Philadelphia, PA 19106
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Caldwell Man Sentenced in Tire Dumping CaseRead the Press Release
Boise - Terry Dorton Anderson, 49, of Caldwell, Idaho, was sentenced today at the federal courthouse in Boise, Idaho on two felony counts of illegally damaging public land by dumping hundreds of old tires, United States Attorney Wendy J. Olson announced. Chief United States District Judge B. Lynn Winmill sentenced Anderson to five years of probation so he can work to pay mandatory restitution of $14,500 for clean-up of Squaw Creek Canyon, and restitution in the amount of $7,157 for clean-up of land near Highway 78. Anderson can receive credit for the Highway 78 restitution if he cleans up and properly disposes of the hundreds of tires from the Highway 78 location to BLM’s satisfaction by June 15, 2015.
Anderson pleaded guilty on November 5, 2014. At his plea hearing, he admitted that, between July and December, 2012, he dumped hundreds of junk tires in Owyhee County on federal public lands administered by the Bureau of Land Management (BLM) in the steep-walled Squaw Creek Canyon area below Highway 95 south of Marsing, and on a dirt road near Mile Post 4 of Highway 78.
At sentencing, Assistant U.S. Attorney Marc Haws told the Court: “The creation of this good Earth did not result in any ‘trash lands;’ the only ‘trash lands’ are those disgraced areas trashed by some people. And one dump on public lands tends to get replicated by more people dumping there. This abuse of public land has to stop.” Chief Judge Winmill said that environmental crimes are clearly in the category of actions—like serious crimes against people—that have serious impact upon our nation. He noted that we live on a planet we can’t leave, “so we have an obligation to maintain the environment and protect it.”
“Dumping of junk tires or any kind of waste is a scourge on lands used by the public throughout southern Idaho,” said Olson. “Investigation and prosecution of these cases is a priority for the BLM and for this office. We will continue to join with our state and county partners to protect Idaho’s precious public land resources.”
This case was investigated by the Bureau of Land Management with the assistance of the Idaho Department of Environmental Quality, the Canyon County Sheriff’s Office, and the Owyhee County Sheriff’s Office.
SQUAW CREEK
HIGHWAY 78
CEO and Head Trader of Bankrupt Sentinel Management Sentenced to Prison Terms for $665 Million Fraud Scheme Before Firm’s 2007 CollapseRead the Press Release
CHICAGO — The former chief executive officer of the bankrupt Sentinel Management Group, Inc., was sentenced today to 14 years, and the firm’s former head trader was sentenced to eight years, in federal prison for defrauding hundreds of victims, including customers of Sentinel’s own clients, of more than $665 million before the firm collapsed in August 2007. The former CEO, ERIC A. BLOOM, misappropriated securities belonging to scores of customers by using them as collateral for a loan that Sentinel obtained from Bank of New York Mellon Corp. The bank loan was used, in part, to purchase millions of dollars’ worth of high-risk, illiquid securities not for customers, but for a trading portfolio maintained for the benefit of Sentinel’s officers, including Bloom, members of his family, and corporations controlled by the Bloom family.
Bloom, 49, of Northbrook was convicted in March 2014 of 18 counts of wire fraud and one count of investment adviser fraud after a four-week trial in U.S. District Court. The case is the largest financial fraud case ever prosecuted in Federal Court in Chicago.
U.S. District Court Judge Ronald Guzman said Bloom lied, cheated, and stole from Sentinel’s clients. “I don’t know how he [Bloom] could have expected anything short of horrific losses in any market downturn,” the judge said in imposing the sentence, which he ordered Bloom to start serving on April 30.
Sentinel was located in suburban Northbrook and managed short-term cash investments of futures commission merchants, commodity pools, hedge funds, and other customers. Sentinel’s former head trader, CHARLES K. MOSLEY, 51 of Vernon Hills, pleaded guilty in October 2013 to two counts of investment adviser fraud. He was sentenced after Bloom to eight years in prison, and was ordered to surrender on July 29.
Judge Guzman also ordered both defendants to pay restitution totaling $665,923,451.
“The magnitude of Bloom’s crimes is enormous, and the impact on his victims devastating, with victims around the world suffering losses . . . The Financial crisis did not cause Sentinel’s implosion; it merely tore away the façade of Sentinel’s legitimacy,” Assistant U.S. Attorney Clifford C. Histed argued in a sentencing memo. “The Sentinel case has had an enormous effect on the business and legal community in Chicago for years, and will continue to do so for years to come, and has become an infamous risk management case study,” he added.
Robert B. Wasserman, the Commodity Futures Trading Commission’s chief counsel for its Division of Clearing and Risk, testified at today’s hearing and said in a previous declaration said that Bloom’s fraud scheme “posed the threat of a massive liquidity crisis in the futures market and subjected over a dozen FCMs to immediate risk of insolvency.”
According to court records and the evidence at trial, Bloom was responsible for Sentinel’s day-to-day operations, misled customers four days before Sentinel declared bankruptcy by blaming Sentinel’s financial problems on the “liquidity crisis” and “investor fear and panic” when he knew that the actual reasons for Sentinel’s financial problems were its purchase of high-risk, illiquid securities, excessive use of leverage, and the resulting indebtedness on the Bank of New York loan, which had a balance exceeding $415 million on Aug. 13, 2007. Sentinel declared bankruptcy on Aug. 17, 2007.
Between January 2003 and August 2007, Bloom fraudulently obtained and retained under management more than $1 billion of customers’ funds by falsely representing the risks associated with investing with Sentinel, the use of customers’ funds and securities, the value of customers’ investments, and the profitability of investing with Sentinel. Bloom used customers’ securities invested in Sentinel’s “125 Portfolio” and its “Prime Portfolio” as collateral for its loan with Bank of New York to purchase millions of dollars’ worth of high-risk, illiquid collateralized debt obligations (CDOs).
Bloom lied about customers’ investments and engaged in an undisclosed trading strategy with Sentinel’s own “House Portfolio,” which they traded for the benefit of themselves and Bloom family members. The undisclosed trading strategy included extensive borrowing and a high concentration of CDOs that were inconsistent with the representations Bloom made to customers regarding separate investment portfolios. The undisclosed strategy affected all customers, regardless of the trading portfolio in which they were invested, because Bloom directed employees to use customers’ securities as collateral when Sentinel borrowed money from the Bank of New York and so-called “repo” lenders, and then used the borrowed money to carry out the undisclosed trading strategy. (Under a repurchase agreement, known as a “repo,” a party such as Sentinel, effectively a borrower, sold securities to a counterparty, effectively a lender, with an agreement to repurchase the securities at a later date.)
As part of the fraud scheme, Bloom falsely represented the returns generated by the securities in each Sentinel portfolio to customers. Rather than giving customers the actual returns generated by a particular portfolio, Bloom directed employees on a daily basis to pool the trading results for all of Sentinel’s portfolios and then allocated the returns to the various portfolios as they saw fit. To conceal the scheme, to encourage customers to invest additional funds, and to otherwise lull customers, Bloom on a daily basis caused false and misleading account statements to be created and distributed to customers, including via email. These account statements reported returns earned by customers without disclosing that the returns actually were allocated by Bloom and his employees and were not the result of the market performance of the customers’ particular portfolios. The account statements also listed the purported value of securities being held by each portfolio without disclosing that the securities were being used as collateral for Sentinel’s loan from Bank of New York.
In July and August 2007, Bloom knew that Sentinel was approaching insolvency and that defaulting on the Bank of New York loan was a real possibility, yet he caused Sentinel to take in more than $100 million in customers’ money and continued to conceal Sentinel’s true financial condition from customers.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago. Also assisting in the investigation were the Labor Department’s Employee Benefits Security Administration, the Commodity Futures Trading Commission, and the Securities and Exchange Commission. The CFTC and the SEC filed separate civil enforcement lawsuits following the collapse of Sentinel, which remains in bankruptcy proceedings.
The government was represented by Assistant U.S. Attorneys Clifford C. Histed and Patrick M. Otlewski.
Brevard County Men Sentenced to More Than 10 Years for Operating $18 Million Fraud SchemeRead the Press Release
Orlando, FL – Senior U.S. District Judge John Antoon, II today sentenced Donald Ray Babb (58, Merritt Island) and Ralph Victor Ruth (61, Melbourne) to ten years and one month in federal prison for conspiracy to commit wire fraud. The Court also ordered the forfeiture of their interest in the following properties: 422 Waterside Drive, Merritt Island, FL; 3502 Tipperary Drive, Merritt Island, FL; 3661 Turtle Mound Road, Melbourne, FL; 312 Sycamore Circle, Warne, NC; and 3498 NC Highway 60, Murphy, NC, which were traceable to proceeds of the offense. As part of their sentence, the Court also entered a money judgment in the amount of $18,731,125.58, the proceeds of the conspiracy, and ordered restitution in the amount of $9,728,968.48. Both pleaded guilty on November 12, 2014.
According to court documents, between June 2006 and December 2013, Babb and Ruth orchestrated a scheme in Brevard County that ultimately defrauded approximately 181 investors out of $18.7 million. Doing business as Southeast Mutual Insurance and Investment, LLC, Capstar Industries, LLC, and First Merchant Capital, LLC, Babb and Ruth falsely represented their businesses as licensed financial institutions whose deposits were insured by the FDIC. Using these entities, they advertised risk-free Certificates of Deposit (CDs) investment opportunities that yielded high rates of return. However, neither Babb nor Ruth ever purchased a CD for an investor. Instead, they used the money to make payments to earlier investors in the scheme, and to purchase real estate and other luxury items for themselves.
This case was investigated by Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, the Florida Office of Financial Regulation, and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney David Haas.
Bolton Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – Michael Hayes, 24, of Bolton, was sentenced yesterday by U.S. District Court Judge Timothy S. Hillman to 40 months in prison and eight years of supervised release for possession of child pornography. The court scheduled a hearing in March 2015 on the issue of restitution. Hayes pleaded guilty to the charge in September 2014.
In November 2013, Hayes permitted an undercover federal agent, through the use of a peer-2-peer file sharing network, to download a number of image files and video files which depict child pornography. During the subsequent execution of a search warrant at Hayes's residence, a laptop computer and other storage media were seized, which contained over 2,000 images and videos of child pornography.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Bolton Police Chief Vincent C. Alfano, made the announcement. The case is being prosecuted by Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Blanchester Man Sentenced to 30 Years in Prison for Producing Pornography of ChildrenRead the Press Release
CINCINNATI – Stewart M. Kidwell, 37, of Blanchester, was sentenced in U.S. District Court to 30 years in prison for production of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John Barrios, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, Hamilton County Sheriff Jim Neil, Cincinnati Police Chief Jeffrey Blackwell and members of the Greater Cincinnati Internet Crimes Against Children Task Force, announced the sentence handed down today by U.S. District Judge Susan J. Dlott.
According to court documents, the Cincinnati Police Department received a report from a citizen concerned by Kidwell’s statements on social media. Agents with the Greater Cincinnati Internet Crimes Against Children Task Force communicated with Kidwell undercover. During this communication, Kidwell told task force officers he was into “young taboo” and sent several pornographic images of a pre-pubescent girl.
Investigators also discovered a posting on Kidwell’s public Facebook page with a link to an incest website with a message that he was “willing to share.”
While executing a search warrant, Kidwell agreed to speak with law enforcement officials and admitted to taking the child pornographic photos he sent to the undercover officer. He identified the female depicted in the photos as a family member, who was less than 6 years of age at the time the photos were taken.
Kidwell pleaded guilty on August 18, 2014 to production of child pornography. He was also sentenced to lifetime supervised release.“Kidwell’s actions are outrageous and reprehensible,” Assistant U.S. Attorney Christy Muncy told the court. “They have no place in a decent society whose mission should be to protect and nurture children, not abuse them. Kidwell was charged with the duty to protect the victim from the evils of the world – not be the evil.”
Agencies participating in the task force in addition to the U.S. Attorney’s Office are the:
Amberley Village Police Department
Blue Ash Police Department
Cincinnati Police Department
Federal Bureau of Investigation
Hamilton County Prosecutor Joe Deters
Hamilton County Sheriff Jim Neil
Homeland Security Investigations
Secret Service
U.S. Marshals Service
West Chester Police DepartmentU.S. Attorney Stewart commended the cooperative investigation by task force officers, as well as Assistant United States Attorney Christy Muncy, who prosecuted the case.
Bismarck Businessman Sentenced for Tax EvasionRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on Jan. 30, 2015, Youde Li, 42, Bismarck, N.D., was sentenced before U. S. District Judge Daniel L. Hovland to time served and three years’ supervised release on four counts of tax evasion. Judge Hovland also ordered that Li pay $400 to the Crime Victims Fund as well as paying restitution to the IRS.
In March 2012, a search warrant was conducted on Li’s primary residence, the “China Garden” restaurant, and two safe deposit boxes. Bookkeeping records along with cash were discovered at Li’s residence. Li pleaded guilty to 4 counts of Tax Evasion for underreporting income of $961,000 from his Bismarck, N.D., restaurant called: “China Garden”.
U.S. Attorney Purdon stated, “The U. S. Attorney’s office is committed to the enforcement of all federal tax violations, from refund scams to tax evasion schemes, and will continue to aggressively prosecute this category of federal crimes.”
Shea Jones, Special Agent in Charge of the St. Paul Field Office stated, "Today's sentencing of business owner Mr. Youde Li again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system. Our system of taxation depends on everybody paying their fair share.”
Agents for the IRS were able to locate a set of books kept by the defendant which accounted for the illegal cash as well as a set of “cooked” books which attempted to falsely reflect that no cash had been skimmed from the business by Li. Also, Li failed to report any of the income on his 1040 personal tax returns.
This case was investigated by Internal Revenue Service.
Assistant U. S. attorney Cameron Hayden prosecuted the case.
Attorney Sentenced in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that David Boden, 53, of Hallandale Beach, was sentenced today in West Palm Beach by United States District Judge Kenneth A. Marra to 18 months in prison, to be followed by one year of supervised release. On October 23, 2014, Boden pled guilty to conspiracy to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
Boden was an attorney who, in April 2008, began employment at RRA as a non-equity shareholder. In connection with his guilty plea, Boden admitted that, in February 2009, he began assisting broker Richard L. Pearson in the sale of the settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to Boden for his services. Beginning in September 2009, a group of investors (the “Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. Boden and Pearson, through material misstatements and omissions made to the Investor Group, caused it to incur a loss of approximately $2,400,000.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case was prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. 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.
Attorney Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY G. GRIFFIN, 55, of Ridgefield, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment, followed by one year of supervised release, for filing false tax returns. He also was ordered to pay a $1,000 fine and restitution to the U.S Treasury.
According to court documents and statements made in court, GRIFFIN practiced law in Bronxville, New York, and his clients paid him for his legal services. In 2006, the Internal Revenue Service sent letters to GRIFFIN about his having not filed income tax returns for 2002, 2003, and 2004 tax years. In response to the IRS inquiry, GRIFFIN prepared and submitted fraudulent individual income tax returns for the 2003 and 2004 tax years. The 2003 return reported income of $77,713, gross receipts from the law practice of $225,825, a net profit of $32,200, and a total tax of $10,981. The 2004 return reported income of $67,983, gross receipts from the law practice of $234,894, a net profit of $39,767, and a total tax of $9,606. A subsequent criminal investigation determined that GRIFFIN did not report on these two tax returns approximately $498,934 in additional gross receipts from his law practice, resulting in additional tax due of $136,844.
On September 30, 2014, GRIFFIN waived his right to indictment and pleaded guilty to one count of filing a false tax return.
Judge Underhill ordered GRIFFIN to make restitution to the U.S. Department of Treasury in the total amount of $153,807 – which includes $136,844 for the 2003 and 2004 tax years and $16,963 for the 2005 and 2006 tax years – plus applicable penalties and interest.
GRIFFIN also has two pending criminal cases in the State of New York, one involving his alleged embezzlement of $1,955,000 from the United Hebrew Cemetery on Staten Island, and one involving his alleged embezzlement of approximately $750,000 from seven clients.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Ardmore Woman Pleads Guilty to Theft of Government FundsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that PATRICIA ANN RABORN age 56, of Ardmore, Oklahoma, pled guilty to Theft of Government Funds, in violation of Title 18, United States Code, Sections 641 and 2.
The charge arose from an investigation by the Social Security Administration, Office of Inspector General.
The Indictment alleged that beginning in or around July 2006, and continuing until in or around February, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and willfully embezzle, steal, and purloin money of the Social Security Administration, namely, Social Security Disability Income payments to which she knew she was not entitled, having a value in excess of $1,000.00. The Indictment further alleged that beginning in or around March 2005, and continuing until in or around October, 2012, the defendant had knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Rob Wallace represented the United States.
Amite Woman Pleads Guilty to Theft of Bank FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANGELA LEMOINE, 43, of Amite, pled guilty today to a one-count Bill of Information charging her with the theft of funds.
According court documents, from approximately November 2005 until approximately March 1, 2013, LEMOINE worked for First NBC Bank as a manager at the Kentwood Branch. LEMOINE, admitted to stealing $14,000 by forging a customer’s signature on a maturing Certificate of Deposit (CD). Specifically, on August 6, 2012, LEMOINE withdrew $14,000 from a customer’s CD which was maturing, forged the customer’s signature, and had a teller advance her the $14,000 in cash, which she kept in her possession. LEMOINE signed a hand written confession on March 1, 2013 acknowledging that she stole $14,000. LEMOINE has made full restitution to the bank.
LEMOINE faces a possible maximum sentence of 10 years imprisonment, and/or a fine of $250,000 and up to 3 years of supervised release following any term of imprisonment. U.S. District Judge Carl J. Barbier set sentencing for April 30, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this case. Assistant United States Attorney Carter K. D. Guice, Jr is in charge of the prosecution.
111 Arrests Made in Operation “Wild Wild East”Read the Press Release
U.S. Attorney Kenneth A. Polite, DEA Special Agent in Charge Raymond “Keith” Brown, FBI Special Agent in Charge Michael Anderson, Orleans Parish District Attorney Leon Cannizzaro, New Orleans Police Superintendent Michael Harrison, and Louisiana State Probation and Parole District Administrator Frank Palestina announce the results of Operation “Wild Wild East.”
Beginning in late July 2014, DEA New Orleans Field Division initiated and led Operation Wild Wild East as part of a Violent Trafficker Initiative (VTI). This operation was in response to a sharp increase in shootings and homicides in eastern New Orleans. DEA and FBI agents, in conjunction with the New Orleans Police Department and Louisiana State Probation and Parole, began the VTI by targeting violent, repeat offenders selling heroin, crack cocaine, and guns. Over a six month period, Special Agents conducted undercover buys and telephone wire intercepts concentrated in eastern New Orleans.
On January 29, 2015, DEA, FBI, New Orleans Police Department, Louisiana State Probation & Parole conducted multiple search and arrest operations involving more than 110 law enforcement officers. This operation resulted in 111 arrests (19 Federal / 92 State) with the seizures of 32 guns (4 rifles, 27 handguns, 1 shotgun), 1 ballistic vest, 9 vehicles, $971,234 U.S. Currency, jewelry valued at $332,289, and quantities of heroin and crack cocaine. Of the 111 arrested during this operation, 65 had prior felony arrests. These repeat offenders were removed off the street - relieving the crime riddled eastern New Orleans 7th District of a tremendous burden.
“This is the way law enforcement will do business in this region,” stated U.S. Attorney Kenneth A. Polite. “Together, we are focusing on identifying, investigating, engaging, and ultimately removing perpetrators of violence from our streets. Whether it is through the MAG Unit, headed by NOPD and headquartered at ATF, the FBI Safe Streets Task Force, or efforts like DEA’s Operation Wild Wild East, we are all in this fight to ensure a safer New Orleans area.”
“Drug trafficking is one of the primary drivers of violent crime across the United States, and the City of New Orleans is no exception,” said DEA Special Agent in Charge Keith Brown. “This operation focused the joint efforts of DEA and our law enforcement partners on those drug dealers who preyed upon the good people in New Orleans East by selling drugs and committing acts of violence to protect their illegal business, and to retaliate on their perceived competition. Drug dealing and violent crime often walk hand in hand spreading fear and destruction wherever they go, and we in law enforcement have an obligation to put a stop to those who would destroy our communities. DEA is committed to its partnerships with the New Orleans Police Department, the Louisiana Department of Public Safety and Corrections Division of Probation and Parole, the FBI, and the other dedicated law enforcement officers who work in and around the City of New Orleans in our ongoing efforts to make it a safer and better place for our families and children.”
Thursday 29 January 2015
Wyoming Man Sentenced for Failing to Update His Registration as A Sex OffenderRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on January 27, 2015, Wolfe Jon Taylor Willow, a 29 year old Northern Arapaho Tribal Member, was sentenced for failure to update his sex offender registration for a period of time in January 2014, when his whereabouts were unknown. Willow was sentenced by U.S. District Judge Scott Skavdahl to 16 months imprisonment, 14 years of supervised release, a $200 fine and a $100.00 special assessment. This case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Westminster Investment Advisor Indicted for Theft of Client MoneyRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Jasper Buck, age 59, formerly of Westminster, Maryland and elsewhere including Sanford and Lake Mary, Florida, for mail fraud arising from an investment fraud scheme. The indictment was returned on January 21, 2015 and unsealed today upon the arrest of the defendant. An initial appearance is expected to be scheduled in federal court in the Middle District of Florida today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the five count indictment, Buck worked for mortgage companies, but held himself out to investors as an experienced investment advisor through Portfolio Financial Group (PFG). The indictment alleges that from October 2006 through at least December 2014, Buck told his victims that PFG would loan money provided by the victims to borrowers who needed funds quickly or were unable to obtain traditional bank loans and were therefore willing to pay a higher interest rate on the loans. In fact, there were no such borrowers, and Buck used the victims’ money for his own personal use or to further his fraud scheme.
Buck told his victims that there were other owners and employees of PFG. However, bank accounts for PFG listed Buck as a signatory, and PFG’s addresses were listed as either Buck’s personal residence or shipping and packaging stores such as UPS.
Buck convinced some victims to refinance their home mortgages and use lines of credits in order to invest the proceeds with Buck through PFG. Buck is alleged to have promised the victims that they would receive a monthly return on their investments greater than the victims’ monthly loan payments. In addition, he convinced some victims to move their retirement savings into an account with a self-directed IRA custodian for the purpose of then having those funds transferred to him. Rather than investing the money turned over to him, Buck used some of the money on himself, as well as to pay other victims in order to convince those victims that their investments were earning the promised returns.
Beginning in January 2014 when Buck had exhausted all of the victims’ funds in his PFG account and could no longer make any payments to the victims, he falsely represented that: there was no issue with PFG financially; PFG was updating software, or was slowed by new federal regulations, or was being sold to another company and no assets could be released until the sale was complete; victim money was in PFG’s possession, but Buck could not physically access it; or that Buck was pursuing legal action against PFG.
As a result of the scheme, Buck obtained at least $1,961,364 from the victims. The indictment seeks forfeiture of at least this amount.
Buck faces a maximum sentence of 20 years in prison and a $250,000 fine on each of the five counts of mail fraud.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Sean Delaney, who is prosecuting the case.
Watertown Man Indicted for Armed Sunoco RobberyRead the Press Release
SYRACUSE, NEW YORK - A grand jury in the Northern District of New York returned an indictment charging YARBROUGH LATULAS (30, of Watertown, NY) with three felony offenses: Count One charges him with interference with interstate commerce by robbery; Count Two charges him with using and carrying a firearm during and in relation to a crime of violence; and Count Three charges him with being a felon in possession of a firearm, according to U.S. Attorney RICHARD S. HARTUNIAN. If found guilty, the defendant faces a statutory maximum sentence of life imprisonment, a mandatory minimum of 10 years imprisonment, and a maximum fine of $250,000.00 per count of conviction.
The indictment alleges that on July 31, 2013, the defendant and another male entered the Sunoco located at 1222 Washington Street, Watertown, New York intending to commit a robbery. After entering the Sunoco, YARBROUGH LATULAS stole money and tobacco products from an employee of Sunoco while the other male brandished a short-barreled 12 gauge shotgun. LATULAS is a convicted felon, having been previously convicted in Jefferson County Court on October 16, 2006, for the New York State felony crime of Attempted Forgery in the Second Degree.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution resulted from an investigation conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Syracuse, New York, the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Warrensville Heights Woman Accused of Stealing $189,000 from Social Security over 20 YearsRead the Press Release
A federal grand jury today returned an indictment charging Paula Laverne Gist, 67, of Warrensville Heights, with theft of public money, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The alleged theft of Social Security funds occurred between 1994 and 2014 and totaled approximately $189,564, according to the indictment
The United States Social Security Administration Office of the Inspector General conducted the investigation. The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Violent Gang Member Sentenced to 38 Years in Prison for Racketeering Murder in San JoseRead the Press Release
SAN JOSE – Victor Manuel Rodriguez, a/k/a "Silencer," was sentenced today to 38 years in prison for Racketeering Conspiracy, including conspiracy to commit murder, Possession/Use of a Firearm During and in Relation to a Crime of Violence, Use of a Firearm in Furtherance of a Crime of Violence Resulting in Murder, and Distribution of Methamphetamine, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Rodriguez, 26, of San Jose, Calif., pleaded guilty on March 26, 2014.
According to court records Rodriguez is a member of the Varrio Tami Lee Gangsters (VTG), a Sureño street gang in San Jose. Members of the VTG gang are allied with members of another Sureño gang in San Jose, Varrio Colonias Trece (Colonias). The united Colonias/VTG Gang engage in crimes such as robbery, narcotics trafficking, and murder. Among other acts of violence, members of the Colonias/VTG Gang sought to attack and kill members of rival Norteño gangs.
On the afternoon of August 13, 2012, on Denair Avenue in the vicinity of Letitia Street in San Jose, Rodriguez and his co-defendant Jose Farias Barahas, a/k/a “Oso,” a Colonias gang member, were in a car “hunting” for rival Norteño gang members in retaliation for Norteño spray painted graffiti in the Colonias/VTG Gang’s territory. Rodriguez spotted a young Hispanic man that he did not know standing in a driveway and believed the young man was a Norteño based on his appearance. Rodriguez directed Barahas to turn the car around and pull up next to the young man. Rodriguez exited the vehicle carrying a loaded .38 caliber revolver and fired two shots at the victim at close range, striking him once in the head. The victim, who died two days later, was not a Norteño gang member. Rather, he was simply standing alone in his own driveway after having just arrived home with his girlfriend from the veterinarian where they had taken their sick dog.
“While this sentence cannot relieve the pain and loss suffered by the victim’s family, it is my hope that it will at least lend them some measure of comfort, knowing that one of the perpetrators of this crime will spend over three decades in jail,” said U.S. Attorney Melinda Haag. “This office will devote as many resources as necessary to partner with local and federal law enforcement agencies which are tirelessly working to rid this community of the senseless violence perpetrated by gang members.”
“The suppression of gang violence continues to be a top priority for the FBI. In coordination with our state and local partners, we hope to continue efforts to dampen and eventually eradicate gang violence in our neighborhoods, “ said SAC David Johnson. “Today’s sentencing reinforces the impact our justice system can have on helping to bring closure to those effected by violent acts.”
The Honorable Edward J. Davila, United States District Court Judge, handed down the sentence of 38 years in prison for Rodriguez. Co-defendant Barahas has also pleaded guilty and is scheduled to be sentenced by Judge Davila on March 26, 2015. Both defendants have been in custody since their arrest on October 3, 2012.
Stephen Meyer and Daniel Kaleba are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of paralegal Nina Burney. The prosecution is the result of an investigation by the FBI and the San Jose Police Department.
United States and Colombian Law Enforcement Authorities Execute Simultaneous Arrests in Puerto Rico, Florida and Colombia Dismantling International Drug Trafficking and Money Laundering OrganizationRead the Press Release
This morning, U.S. federal agents in coordination with Colombian law enforcement authorities simultaneously executed arrest warrants in Puerto Rico, Florida and Colombia, dismantling an international drug trafficking and money laundering organization responsible for the importation of multi-kilogram quantities of cocaine into the United States and the laundering of millions of dollars in drug proceeds, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico announced today.
Last month, a federal grand jury in the District of Puerto Rico returned a 23-count indictment charging 29 individuals with numerous violations to federal narcotics and money laundering laws. The charges include conspiracy to import controlled substances, conspiracy to possess controlled substances, conspiracy to launder monetary instruments and substantive counts of money laundering and international money laundering. The indictment also contains a forfeiture allegation for the proceeds obtained as a result of the organization’s illegal activities.
The individuals named in the indictment are Carlos A. Segura-Galvis, Adolfo León García-Sierra, Jair Eudoro Ramírez-Díaz, Roque Caballero-Caballero, Hugo Ocampo-Gutierrez, Mireya Cabra-Traslaviña, Elkin Meléndez-Santiago, Gamalier González-Maldonado, Giovanni Cosme-Fernández, Eduardo Esteras-Rosado, José O. Medina-Nery, Hugo Enrique Romero-Vargas, Edison Miranda-Angulo, Noe Carbajal, Felipe Francisco De La Plaza, Edwin Lozada-Flores, Miguel Vargas-Roa, Ricardo Rodríguez-Rodríguez, Jorge Villarran-Romero, Francisco Otero-Retamar, Miguel A. Lebrón-Hernández, Eldin Meléndez-Santiago, Ángel M. Sierra-Rivera, Bergman Santiago-Contes, José Martínez-Meléndez, Flor Marina González-Rojas, Geovanny Mosquera-Vanegas, Yurgen Gabriel Álvarez-Gutierrez and Brian Montalvo-Tolentino.
Nine of the 29 defendants, Adolfo León García-Sierra, Jair Eudoro Ramírez-Díaz, Roque Caballero-Caballero, Hugo Ocampo-Gutierrez, Mireya Cabra-Traslaviña, Hugo Enrique Romero-Vargas, Flor Marina González-Rojas, Geovanny Mosquera-Vanegas and Yurgen Gabriel Álvarez-Gutierrez, will be extradited from Colombia to stand trial in the District of Puerto Rico.
The investigation leading to today’s arrests uncovered that from November 2010 through September 2012, members of this drug smuggling and money laundering organization operating in Colombia were sending kilogram quantities of cocaine to Puerto Rico using go-fast vessels. Members of the organization in Colombia and Puerto Rico would coordinate the maritime transportation in the following way: the vessels would depart from the northern part of Venezuela and would meet other vessels departing from Puerto Rico to receive the drugs at a pre-arranged point, approximately 100 nautical miles south of Puerto Rico. On some occasions, the vessels coming from Venezuela would travel directly to the island of Vieques, Puerto Rico, to deliver the drugs to individuals that were waiting for the drugs at shore. The drugs would be briefly stored in Vieques until the same was transported into the main island of Puerto Rico through the Fajardo-Vieques ferry. On some occasions the organization also used cargo containers and other type of vessels to smuggle cocaine and heroin into Puerto Rico.
It was also part of the modus operandi of this organization to require that members of the organization in Puerto Rico would travel to Venezuela and other places and remain there during the drug smuggling ventures to act as a personal guarantee, also known as “fiscales,” for the payment of the controlled substances smuggled into Puerto Rico.
Once the drugs were smuggled into Puerto Rico, members of the organization operating in the Barrio Obrero ward of Santurce and other parts of the San Juan, Puerto Rico, metropolitan area would receive the drugs and distribute it in Puerto Rico for financial gain. A portion of the drugs would be further transported to New York for further distribution and additional financial gain. Once the drugs were distributed, members of the organization would reap the profits from the sale of the controlled substances and would wait for instructions from Colombia on how to send the proceeds of their illegal drug trafficking business back to Colombia.
The organization would repatriate their illegal proceeds through wire transfers to banking institutions in Panama and China, Western Union transfers to individuals in Colombia and Peru and by the use of couriers traveling to Puerto Rico from Colombia, Venezuela and/or Florida to receive hundreds of thousands of dollars in bulk cash.
The investigation also revealed that the organization used threats, intimidation and acts of violence, including kidnappings, to collect debts for the controlled substances smuggled into Puerto Rico.
Today’s arrests are the result of a long-term investigation led by special agents from the U.S. Department of Homeland Security Homeland Security Investigations (HSI), in San Juan as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
“These arrests are a clear indication of the success of the OCDETF program in the fight against drug trafficking,” said U.S. Attorney Rodríguez-Vélez. “Today’s arrests dismantle an organization that coordinated not only the traffic of drugs within Colombia and the United States, but also the movement of drug money, which is essential to the success of these illegal activities. Among the individuals to be extradited from Colombia are drug owners, a maritime transportation coordinator, a money broker and enforcers for the drug trafficking organization. Two of the individuals named in this indictment have been listed as regional priority targets of the OCDETF program and are now behind bars facing long terms of imprisonment. We will continue maximizing our multi-agency efforts and will combine resources to investigate and prosecute those who disregard our laws and try to smuggle drugs into our jurisdiction.”
“This case exemplifies that those involved in the distribution of narcotics and other contraband will be vigorously investigated and prosecuted,” said Special Agent in Charge Ángel M. Meléndez of HSI San Juan. “Drug trafficking organizations must be aggressively attacked and dismantled at every level - from the street dealer to the international supplier and drug lord. Through the coordinated efforts of our federal, state and local law enforcement partners, we have effectively eradicated an organization responsible for bringing significant quantities of drugs into our communities.”
The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations and up to 20 years for the money laundering violations. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Carlos R. Cardona for the District of Puerto Rico.
The U.S. Attorney’s Office for the District of Puerto Rico gratefully acknowledges the assistance of the U.S. Department of Justice’s Office of International Affairs, the office of the Judicial Attaché of the U.S. Embassy in Colombia, HSI special agents in Bogota, Colombia, and Colombian law enforcement authorities for their assistance and support provided in this case.
United States Attorney’s Office announces sentencing of former redevelopment commission memberRead the Press Release
John “Jay” Carter sentenced for his role in major money laundering scheme involving drug money from local marijuana dealers
PRESS RELEASE
EVANSVILLE- Josh J. Minkler, Acting United States Attorney, announced today the sentencing of a former member of the Evansville Redevelopment Commission for his role in a major drug-laundering scheme. John “Jay” Carter 49, was sentenced to four years in federal prison by U.S. District Judge Richard L. Young. Carter was convicted in October of last year on eight counts of money laundering, two counts of making false statements to federal agents and structuring a money transaction.
“The citizens of Evansville deserve better from their public officials,” said Minkler. “Mr. Carter used his position of authority to bypass the legal system and used dirty drug money to assist criminals and better himself.”
According to court documents and testimony, two Evansville-area residents, were involved in a large-scale drug trafficking operation, moving hundreds of pounds of marijuana to the tri-state area from Mexico and Texas. This activity generated large amounts of cash proceeds.
Carter assisted these men in efforts to launder their money by concealing its origin through real estate transfers, business deals, financial transactions and in at least one case, testified before the Evansville Public Safety Committee to support awarding a city contract that benefitted them.
Carter used $90,000 in drug proceeds to transfer ownership of a property on South Kentucky Avenue from one of the dealers, then transferred the property to himself. He used thousands of dollars in drug proceeds to purchase automobiles, a towing business and wreckers, later used for a City contract in Evansville. Carter also used money from drug transactions to purchase Jazzy Grooves Nightclub located on Main Street in Downtown Evansville.
This case was investigated by the Internal Revenue Service, the Evansville Police Department and the Drug Enforcement Administration.
“IRS-Criminal Investigation is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society,” said Special Agent in Charge James C. Lee. “When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the public trust. IRS-CI helps maintain that public trust and ensure that everyone pays their fair share.”
According to Assistant United States Attorney Matthew Brookman, who prosecuted this case for the government, Carter must serve three years of supervised release after his sentence.
United States Attorney for Southern Illinois Announces Crackdown on Federal Tax FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, along with David E. Talcott, Assistant Special Agent in Charge, Internal Revenue Service/Criminal Investigation, Chicago Field Office, highlighted today a full series of recent Indictments and criminal prosecutions aimed at combating federal tax fraud. United States Attorney Wigginton noted, “These fraudsters are stealing from every lawful citizen in the United States. Stiff prison terms will help to end these thefts. If you engage in tax fraud in the Southern District of Illinois, we will be looking for you and will put you in jail. I am hoping that the timing of this announcement, just nine days into this years’ tax filing season, will serve to warn and deter those thinking about cheating our citizens – prison time, far away from family and friends, cannot be worth the amount of money you would get from such a theft!”
"Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said James C. Lee, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. "Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."
Examples of the cases currently prosecuted serve to highlight this effort –
United States v. Edric Russell, Lakesha Wilson, Melissa Wiley, Tanesa Beverly & Pierre Carter
On January 22, 2015, a grand jury sitting in East St. Louis returned a 22 count indictment charging Edric A. Russell, 34, of East St. Louis, Lakesha R. Wilson, 27, of East St. Louis, Melissa L. Wiley, 33, of Granite City, Tanesa L. Beverly, 31, of Belleville, and Pierre J. Carter, 32, of East St. Louis, with conspiring to submit false claims to the United States and preparing false federal income tax returns. Each of these persons worked as a return preparer at a tax preparation business known as Tax King. Tax King was located on Collinsville Avenue in East St. Louis. The false tax returns were for the 2011 and the 2012 tax years. The indictment charges that these five tax preparers falsified items on their clients’ returns in order to cause the clients to receive larger refunds than they were entitled to. Specifically, it is alleged that the prepares: (1) created false Business Income and Schedules Cs in order to cause their clients to qualify for larger Earned Income Credits (“EICs”); (2) falsified wages, again to cause the clients to qualify for a larger EICs; (3) created false education expenses so that their clients would qualify for an American opportunity education credit; and (4) created false information regarding fuel taxes so that the clients would qualify for a federal fuel tax credit. Tax King charged its clients fees which ranged from approximately $400 to $650. In addition, the five preparers typically requested cash “tips” that ranged from approximately $100 to $1,000. The charge of conspiring to submit false claims carries a maximum sentence of 10 years in federal prison and a $250,000 fine. Each charge of preparing false income tax returns carries a maximum sentence of 3 years in federal prison and a fine of $250,000. The case was investigated by the Internal Revenue Service/Criminal Investigation. The prosecution is being handled by Assistant United States Attorney Scott A. Verseman.
United States v. Aisha Wright
Aisha Wright, age 33, of Alton, Illinois, waived indictment and pled guilty on January 16, 2015, to two counts of Making False Claims Against the United States. Aisha Wright operated A W Mobile Taxes, in Alton, Illinois. Potential fraud was detected by the Scheme Development Center of the I.R.S. Two undercover agents were sent to have tax returns prepared which were fraudulent. Further investigation revealed systematic preparation of false returns for taxpayers that falsified Schedule A deductions, Schedule C self-employment income, and falsified Page 3 of 8 education expenses for receipt of the education tax credit. Total losses exceed $1,000,000. Wright faces up to ten years in prison, three years supervised release, a fine of up to $250,000 and restitution. Sentencing is scheduled for April 17, 2015. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Shanta Doss
A federal grand jury returned an indictment on January 21, 2015, charging Shanta Doss, 31, of Shiloh, Illinois, with fifteen counts of making False Claims Against the United States through the filing of false federal tax returns, and one count of Making A False Declaration Before A Federal Grand Jury. The indictment charges that Shanta Doss prepared false returns for others as a paid preparer but did not sign the returns. The indictment charges that she made up numbers for Schedule C self-employment which allowed individuals to fraudulently receive additional earned income credit and larger federal tax refunds than they were entitled. Shanta Doss faces up to eighty years in prison, three years supervised release, a $250,000 fine and restitution. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Doressa Braggs
On January 29, 2015, Doressa Braggs, 46, of Belleville, Illinois, entered pleas of guilty to ten counts of Making False Claims Against the United States through the filing of federal tax returns and one count of Aggravated Identity Theft in Using a Social Security Number of Another during and in Relation to Wire Fraud. She faces a maximum sentence of up to fifty years in prison for the false claims and a mandatory consecutive two year prison sentence for the aggravated identity theft. In addition she faces up to three years supervised release, a $250,000 fine and restitution. As part of the plea, Braggs acknowledged that beginning in 2010 and continuing through the summer of 2012, she knowingly prepared and submitted false tax returns to obtain the payment of false and fraudulent federal income tax refunds from the Internal Revenue Service. The IRS Scheme Development Center (SDC) utilizes databases to research possible tax refund fraud schemes. The SDC linked tax returns based on internet protocol (IP) addresses, wage amounts, federal tax withholding amounts, employers, Page 4 of 8 occupations, electronic filing identification numbers (EFIN), and bank accounts, which revealed a tax refund scheme. The false returns prepared by Braggs utilized Forms W-2 which claimed false wages and false federal income tax withholdings. In some cases, she simply falsified the W-2s that she received from her clients, to overstate the wages and federal income tax withholding; in other cases (e.g., where the client was unemployed/did not have a W-2, she would fabricate an entirely false W-2-again, to report fictitious wages and federal income tax withholding. Many of the returns also claimed false Schedule C business expenses/losses. Braggs would typically list grooming type professions (e.g., hairstylist, beautician, etc.) on the fabricated Schedule C's that she filed with her clients' returns. Braggs falsely did not list herself in the "paid preparer" section of the returns. Sentencing has been scheduled for May 8, 2015. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Sylvia Baker, Alicia Jackson, Sylvin Baker and Lamarion Shanes
A federal grand jury returned an eight-count indictment on October 22, 2014, charging four Metro-east residents with participating in a scheme to submit false claims for federal tax refunds. Sylvia Baker, 30, Fairview Heights, and Alicia Jackson, 40, Belleville, are charged with participating in a conspiracy to defraud the United States by making false claims for tax refunds to the Internal Revenue Service by submitting false federal income tax returns. Sylvia Baker is also charged in five additional counts of submitting false tax returns for others and is charged with making a false statement to the Internal Revenue Service when interviewed during the criminal investigation. She faces a prison sentence of up to 40 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Alicia Jackson is also charged in two additional counts for making false claims for federal tax refunds and faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Lamarion Shanes, 32, East St. Louis, is charged in two counts of making false claims for federal tax refunds and faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Sylvin Baker, 58, East St. Louis, is charged in one count of making a false claim for a federal tax refund in submitting a false federal income tax return and faces a prison sentence of up to 5 years, a fine of up to $250,000, and up to 3 Page 5 of 8 years’ supervised release after serving her sentence and mandatory restitution. Trial is scheduled for March 9, 2015. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Tajuana Sullivan
Tajuana L. Sullivan, 27, of Marion, Illinois, on November 26, 2014, entered pleas of guilty to conspiracy to defraud the Internal Revenue Service by submitting numerous false federal tax returns. She also pled guilty to aggravated identity theft for using a stolen identity of another in submitting a fraudulent tax return. Sullivan faces a prison sentence of up to 37 years, a fine of up to $1,000,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Sentencing has been scheduled for March 26, 2015. On February 19, 2013, deputies with the Shelby County Sheriff’s Office conducted a traffic stop on a vehicle driven by Tajuana L. Sullivan. Upon a search of the vehicle, approximately 53 debit cards and a notebook with names and identifying information were found in Tajuana L. Sullivan’s possession. The IRS Scheme Development Center (SDC) utilizes databases to research possible tax refund fraud schemes. The SDC linked tax returns based on the notebook containing identifying information found in Tajuana L. Sullivan’s’ vehicle, internet protocol (IP) addresses, employers, occupations, and electronic filing identification numbers (EFIN), which revealed a tax refund scheme, some of which involved stolen identities. The data provided by the SDC consisted of 2011 and 2012 tax returns, which were filed during the years 2012 and 2013, respectively. This tax refund scheme consisted of approximately 86 federal income tax returns, which claimed approximately $283,700 in fraudulent tax refunds. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Destry Marcotte
Destry Marcotte, 48, of Belleville, Illinois, is awaiting sentencing scheduled for February 4, 2015, for the offenses of Making False Claims Against the United States through the submission of fraudulent returns and for Failure to Appear for Sentencing. On October 23, 2013, Marcotte was originally convicted by a jury of making false claims against the United States. Before the Page 6 of 8 Internal Revenue Service and during trial he made “sovereign citizen” claims of not being subject to the laws of the United States. He then failed to appear for his sentencing originally scheduled for May 1, 2014, and was indicted for Failure to Appear. He cut off and discarded a location monitoring device. He was apprehended on September 22, 2014. On October 30, 2014, he entered a plea of guilty to the failure to appear offense. He faces a total maximum punishment of up to thirty years in prison; three years supervised release, a $250,000 fine, and restitution. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Melissa Perkins
On July 23, 2014, Melissa Perkins, 33, of Tioga County, New York was charged with Conspiracy to Commit Wire Fraud through Identity Theft and Tax Fraud. Perkins has requested that the matter be transferred to the Northern District of New York for disposition. She faces a maximum penalty of up to twenty years in prison; three years supervised release, a $250,000 fine and restitution. The Indictment charges that on or about January 31, 2014, through approximately February 28, 2014, an unidentified co-conspirator hacked into a computer server of a C.P.A. firm located in Alton, Illinois, in Madison County, Illinois. The hacker reviewed tax return information of individuals and unlawfully obtained hundreds of individual personal identifiers including individuals’ Social Security numbers. The stolen personal identifier information was then used to unlawfully and fraudulently file federal tax returns using the stolen identities of clients of the Alton accounting firm in order to obtain fraudulent federal tax refunds. It was part of the conspiracy to recruit individuals to open up bank accounts and prepaid debit card accounts in order to receive the federal tax refunds. In December of 2013, Melissa Perkins, opened up a bank account at M & T Bank at the direction of a conspirator who identified himself as "Scott McConnell" in order to receive money and forward the money on to the co-conspirator. Melissa Perkins "met" Scott McConnell in or about October of 2013, through an online dating website. Scott McConnell identified himself as being in the U.S. Army and indicated he would be receiving money and would direct her to forward money to his mother in Nigeria. Thereafter, Perkins received numerous federal and state tax refunds which were deposited into her account. She would wire transfer the majority of the refunds to Nigeria. The indictment alleges that she Page 7 of 8 continued to receive the deposits into her account and continued to forward the funds to Nigeria after being advised that her conduct was illegal. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Tanya Nichols and Justin Durley
Two Missouri residents were indicted by the federal grand jury on August 20, 2014, in a lengthy indictment alleging that Tanya Nichols, 33, of St. Louis, Missouri, functioned as a dishonest tax preparer who filed false tax returns to claim inflated tax returns for low-income tax filers. Nichols’ half-brother, Justin Durley, 30, of Hazelwood, Missouri, was charged with theft of government property for his role in the refund scheme. Nichols and Durley are scheduled for trial on February 9, 2015. The tax refund scheme alleged that Nichols prepared fraudulent income tax returns for individual tax filers in order to generate “refundable tax credits,” such as the earned income tax credit (EIC) and the child tax credit, which were refunded to the filer. The false information contained in the income tax returns prevented the IRS from making an accurate assessment of tax liabilities. It also prevented the IRS from making a correct distribution of income tax refunds. The false tax returns generated a larger tax refund than the filers were entitled to receive. Nichols shared the proceeds generated from the fraudulent returns with the tax filers, while collecting a fee in excess of that typically charged by legitimate tax preparers. Nichols also paid finders’ fees to those who recruited tax filers to participate in the scheme. The indictment charges that Nichols and her coconspirators solicited low-income individuals residing in St. Louis, Missouri and East St. Louis, Illinois to become participants in this refund scheme by promising IRS tax refunds, sometimes marketed as “free money.” The indictment explains that “refundable tax credits” are vulnerable to abuse because they have cash value to tax filers. That means a filer can receive “refund” payments for refundable credits even when the person filing the tax return has never paid any income tax whatsoever. In the case of low-income tax filers, it is common for a person to have little or no federal tax liability while still qualifying to receive these valuable refundable tax credits. This means that a low-income filer can receive a tax “refund” that exceeds the amount of income tax the filer actually paid. In that situation, the filer is not receiving a refund of their money; but rather they Page 8 of 8 are actually profiting from the tax code by receiving thousands of dollars’ worth of refundable tax credits that exceed the filer’s tax obligations. The indictment alleges that Nichols took advantage of this system by falsifying income, employment, dependents, and other factors, to fraudulently generate these large refundable tax credits. Conspiracy is punishable by not more than 5 years in federal prison, a $250,000 fine, and not more than 5 years supervised release. Theft of government property is punishable by not more than 10 years in prison, a $250,000 fine and not more than three years supervised release. Each count of wire fraud is punishable by not more than 20 years in prison, a $250,000 fine, and not more than three years of supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. The investigation is being conducted by agents from the Internal Revenue Service / Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft. NOTE: In of these all cases, an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of the charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
United States and Colombian Law Enforcement Authorities Execute Simultaneous Arrests in Puerto Rico, Florida and Colombia Dismantling International Drug Trafficking and Money Laundering OrganizationRead the Press Release
SAN JUAN, PR –This morning, federal agents in coordination with Colombian law enforcement authorities simultaneously executed arrest warrants in Puerto Rico, Florida, and Colombia, dismantling an international drug trafficking and money laundering organization responsible for the importation of multi-kilogram quantities of cocaine into the United States and the laundering of millions of dollars in drug proceeds, announced United States Attorney Rosa Emilia Rodríguez-Vélez today.
Last month, a federal grand jury in the District of Puerto Rico returned a twenty-three count indictment charging 29 individuals with numerous violations to federal narcotics and money laundering laws. The charges include: conspiracy to import controlled substances, conspiracy to possess controlled substances, conspiracy to launder monetary instruments and substantive counts of money laundering and international money laundering. The indictment also contains a forfeiture allegation for the proceeds obtained as a result of the organization’s illegal activities.
The individuals named in the indictment are: Carlos A. Segura-Galvis, Adolfo León García-Sierra, Jair Eudoro Ramírez-Díaz, Roque Caballero-Caballero, Hugo Ocampo-Gutierrez, Mireya Cabra-Traslaviña, Elkin Meléndez-Santiago, Gamalier Gonzàlez-Maldonado, Giovanni Cosme-Fernàndez, Eduardo Esteras-Rosado, José O. Medina-Nery, Hugo Enrique Romero-Vargas, Edison Miranda-Angulo, Noe Carbajal, Felipe Francisco De La Plaza, Edwin Lozada-Flores, Miguel Vargas-Roa, Ricardo Rodríguez-Rodríguez, Jorge Villarran-Romero, Francisco Otero-Retamar, Miguel A. Lebrón-Hernàndez, Eldin Meléndez-Santiago, Ángel M. Sierra-Rivera, Bergman Santiago-Contes, José Martínez-Meléndez, Flor Marina Gonzàlez-Rojas, Geovanny Mosquera-Vanegas, Yurgen Gabriel Álvarez-Gutierrez, and Brian Montalvo-Tolentino.
Nine of the twenty-nine defendants, to wit: Adolfo León García-Sierra, Jair Eudoro Ramírez-Díaz, Roque Caballero-Caballero, Hugo Ocampo-Gutierrez, Mireya Cabra-Traslaviña, Hugo Enrique Romero-Vargas, Flor Marina Gonzàlez-Rojas, Geovanny Mosquera-Vanegas, and Yurgen Gabriel Álvarez-Gutierrez, will be extradited from Colombia to stand trial in the District of Puerto Rico.
The investigation leading to today’s arrests uncovered that, from November 2010 through September 2012, members of this drug smuggling and money laundering organization operating in Colombia were sending kilogram quantities of cocaine to Puerto Rico using go-fast vessels. Members of the organization in Colombia and Puerto Rico would coordinate the maritime transportation in the following way: the vessels would depart from the northern part of Venezuela and would meet other vessels departing from Puerto Rico to receive the drugs at a pre-arranged point, approximately 100 nautical miles south of Puerto Rico. On some occasions, the vessels coming from Venezuela would travel directly to the island of Vieques, Puerto Rico to deliver the drugs to individuals who were waiting for the drugs at shore. The drugs would be briefly stored in Vieques until the same was transported into the main island of Puerto Rico through the Fajardo-Vieques ferry. On some occasions the organization also used cargo containers and other type of vessels to smuggle cocaine and heroin into Puerto Rico.It was also part of the modus operandi of this organization to require that members of the organization in Puerto Rico travel to Venezuela and other places and remain there during the drug smuggling ventures to act as a personal guarantee (also known as “fiscales”) for the payment of the controlled substances smuggled into Puerto Rico.
Once the drugs were smuggled into Puerto Rico, members of the organization operating in the Barrio Obrero ward of Santurce and other parts of the San Juan metropolitan area would receive the drugs and distribute it in Puerto Rico for financial gain. A portion of the drugs would be transported to New York for further distribution and additional financial gain. Once the drugs were distributed, members of the organization would reap the profits from the sale of the controlled substances and would wait for instructions from Colombia on how to send the proceeds of their illegal drug trafficking business back to Colombia.The organization would repatriate their illegal proceeds through wire transfers to banking institutions in Panama and China, Western Union transfers to individuals in Colombia and Peru, and by the use of couriers traveling to Puerto Rico from Colombia, Venezuela and/or Florida to receive hundreds of thousands of dollars in bulk cash.
The investigation also revealed that the organization used threats, intimidation, and acts of violence, to include kidnappings, to collect debts for the controlled substances smuggled into Puerto Rico.
Today’s arrests are the result of a long-term investigation led by special agents from the United States Department of Homeland Security, Homeland Security Investigations (HSI), in San Juan, Puerto Rico as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
“These arrests are a clear indication of the success of the OCDETF program in the fight against drug trafficking. Today’s arrests dismantle an organization that coordinated not only the traffic of drugs within Colombia and the United States, but also the movement of drug money, which is essential to the success of these illegal activities. Among the individuals to be extradited from Colombia are drug owners, a maritime transportation coordinator, a money broker, and enforcers for the drug trafficking organization. Two of the individuals named in this indictment have been listed as regional priority targets (RPOTs) of the OCDETF program and are now behind bars facing long terms of imprisonment,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue maximizing our multi-agency efforts and will combine resources to investigate and prosecute those who disregard our laws and try to smuggle drugs into our jurisdiction.”
“This case exemplifies that those involved in the distribution of narcotics and other contraband will be vigorously investigated and prosecuted,” said Ángel M. Meléndez, special agent in charge of HSI San Juan. “Drug trafficking organizations must be aggressively attacked and dismantled at every level - from the street dealer to the international supplier and drug lord. Through the coordinated efforts of our federal, state and local law enforcement partners, we have effectively eradicated an organization responsible for bringing significant quantities of drugs into our communities.”
The case is being prosecuted by Assistant United States Attorney Carlos R. Cardona.
The United States Attorney’s Office for the District of Puerto Rico gratefully acknowledges the assistance of the US Department of Justice Office of International Affairs, the office of the Judicial Attaché of the US Embassy in Colombia, HSI special agents in Bogota, Colombia, and Colombian law enforcement authorities for their assistance and support provided in this case.
The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations and up to 20 years for the money laundering violations. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Two Minnesota Men Sentenced to Federal Prison for Meth-Distribution ConspiracyRead the Press Release
Contact: Steve Young
Two men who conspired to distribute methamphetamine were each sentenced January 26, 2015, to more than 11 years in federal prison.
Isaias Vasquez-Amaya, age 31, of Crystal, Minnesota, received the prison term after a November 13, 2014, guilty plea, and Jose Nicolas Vasquez-Mendez, age 30, of Crystal, Minnesota, received his prison term after an October 10, 2014, guilty plea. Each pled guilty to conspiracy to distribute methamphetamine.
Information provided by the United States at the sentencing’s and change of plea hearings showed Vasquez-Mendez distributed methamphetamine to confidential informants during his involvement in the conspiracy from February 2014 through August 27, 2014. Vasquez-Amaya was involved in controlled buys from undercover officers on numerous occasions and was responsible for the distribution of more than 500 grams of actual (pure) methamphetamine. Both were in possession of more than 600 grams of actual (pure) methamphetamine on August 27, 2014, during a traffic stop.
Vasquez-Amaya and Vasquez-Mendez were sentenced in Cedar Rapids, Iowa, by United States District Court Chief Judge Linda R. Reade. Each were sentenced to 135 months’ imprisonment. Both must also serve a 5-year term of supervised release after the prison term. Vasquez-Amaya was ordered to pay a $200 special assessment and Vasquez-Mendez was ordered to pay a $100 special assessment. There is no parole in the federal system.
Both are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney John Lammers and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Iowa Department of Public Safety Division of Narcotics Enforcement, the Iowa State Patrol, the North Central Iowa Narcotics Task Force, and the South Central Drug Investigation Unit out of Minnesota.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-3047.
Two Illinois Women Sentenced on Charges for Illegally Obtaining Controlled Substance by FraudRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Abbe L. Terry, 51, of East Alton, Illinois, and Jacklyn McCormack, 26, of Belleville, Illinois, were sentenced this week in the United States District Court in East Saint Louis.
The district court ordered Terry to serve six months of imprisonment and one year of supervised release. The court also ordered Terry to pay $300 in special assessments. At her plea, Terry admitted that on May 10, 2013, October 13, 2013 and October 23, 2013, she had, through the use of fraud and forgery, obtained Duragesic Patches referred to as Fentanyl, a Schedule II controlled substance. Terry admitted that she used forged prescriptions that she had made on a home computer to obtain the controlled substances that had not been lawfully prescribed to her. Terry obtained the substances from pharmacies in Alton, Illinois.
The district court ordered McCormack to serve four months of imprisonment and three years of supervised release. The first three months of supervised release are ordered to be served in a halfway house. The court also ordered McCormack to pay $134.37 in restitution, divided equally, to the Illinois Department of Healthcare and Family Services and the U.S. Department of Health and Human Services’ Center for Medicare and Medicaid Services and pay $400 in special assessments. At her plea, McCormack admitted to using forged prescriptions to obtain Oxycodone, a Schedule II narcotic control substance.
Two Cleveland Woman Accused of Using Counterfeit Checks to Get Prepaid Cards at Target StoresRead the Press Release
A federal grand jury today returned an indictment in U.S. District Court charging Stephanie Laverne Washington, 46, and Carolyn Badley-Pinson, 56, both of Cleveland, with bank fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The women are accused of using counterfeit checks to obtain prepaid debit or credit cards at 26 Target stores in Ohio, including stores in Willoughby, Mayfield Heights, Akron and North Olmsted between 2010 and 2013. Several financial institutions were defrauded a total of approximately $164,083 as a result of the scheme, according to the indictment.
The United States Secret Service and the Ontario (Ohio) Police Department conducted the investigation. The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Indictments for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned three indictments today, separately charging three men with trafficking methamphetamine, United States Attorney Benjamin B. Wagner announced. Assistant United States Attorney Jason S. Hitt is prosecuting the cases.
Alejandro Ortiz-Salas, 37, a citizen of Mexico, is charged with three counts of distributing methamphetamine. According to court documents, Ortiz-Salas sold methamphetamine in the Sacramento area in 2004. After a criminal complaint was issued charging him with distribution, he fled from the Eastern District of California. He was apprehended in December 2014 near the border between Texas and Mexico and brought to Sacramento. This case is the product of an investigation by the Drug Enforcement Administration and the Yolo County Narcotics Enforcement Team. Docket #: 2:15-cr-026 GEB
The following two cases are the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Glenn Interagency Narcotics Task Force, and the California Highway Patrol. Sergio Carrillo-Raygoza, 20, was charged with possessing with intent to distribute methamphetamine. According to court documents, on January 21, 2015, Carrillo-Raygoza was stopped by law enforcement in Glenn County for a traffic violation. Two pounds of methamphetamine was found in his vehicle. Docket #: 2:15-cr-024 KJM
Ulices Beltran, 21, was charged with possessing with intent to distribute methamphetamine. According to court documents, on January 21, 2015, a traffic stop of Beltran resulted in the seizure of two pounds of methamphetamine from his vehicle. Docket #: 2:15-cr-025 KJM
If convicted, all three defendants face a maximum statutory penalty of up to 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.Three Echols County Residents Indicted on Dog Fighting, Firearms and Narcotics ChargesRead the Press Release
United States Attorney Michael J. Moore announced today that a federal grand jury returned a multiple count indictment in the United States District Court for the Middle District of Georgia, Valdosta Division, charging Raymond Lee Hendrix (a/k/a “Georgia Lee” and “Lee”), of Echols County, Georgia; Willie Henderson, of Lowndes County, Georgia; and Tara Renee Hunt, of Echols County, Georgia, with conspiracy to travel in interstate commerce to sponsor and exhibit a dog in an animal fighting venture. If convicted, they could face a sentence of 5 years imprisonment, $250,000 fine, or both.Other charges include:
- travel in interstate commerce to sponsor and exhibit a dog in an animal fighting venture (Hendrix and Hunt) – potential sentence of 5 years imprisonment, $250,000, or both;
- possessing, training and transporting a dog in an animal fighting venture (Hendrix, Henderson and Hunt) – potential sentence of 5 years imprisonment, $250,00 fine, or both;
- buying, selling, delivering, possessing, training, transporting and receiving a dog in an animal fighting venture (Hendrix, Henderson, Hunt) – potential sentence of 5 years imprisonment, $250,00 fine, or both;
- possession of a firearm in furtherance of a crime of violence (Hendrix and Henderson) – potential sentence of 5 years to life in prison consecutive to any other term of imprisonment, $250,000 fine, or both;
- manufacturing marijuana (Henderson) – potential sentence of 20 years imprisonment, $1,000,000 fine, or both;
- maintaining a drug involved premises (Henderson) – potential sentence of 20 years imprisonment, $500,000 fine, or both;
- possession of a firearm in furtherance of a drug trafficking crime (Henderson) - potential sentence of 5 years to life in prison consecutive to any other term of imprisonment, $250,000 fine, or both;
- possession of a firearm by a convicted felon (Henderson) – potential sentence of 10 years imprisonment, $250,000 fine, or both.
Mr. Hendrix appeared before U.S. Magistrate Judge Thomas Q. Langstaff on January 15, 2015 in Albany for his initial appearance and arraignment. He was released on a $15,000 unsecured bond.
Ms. Hunt appeared before Judge Langstaff on January 28, 2015 in Albany for her initial appearance and arraignment. She was released on a $10,000 unsecured bond.
Mr. Henderson is scheduled to appear in U.S. District Court in Albany on February 3, 2015 for his initial appearance and arraignment.A copy of the indictment is attached. An indictment is only an allegation. The accused are presumed innocent until and unless proven guilty.
The case resulted from an inter-agency investigation conducted by the Federal Bureau of Investigation, United States Department of Agriculture – Office of Inspector General, Echols County (Georgia) Sheriff’s Office, Auburn (Alabama) Police Department, Bainbridge (Georgia) Department of Public Safety, Alabama Alcoholic Beverage Control Board, Lee County (Georgia) Sheriff’s Office along with assistance from the Humane Society of the United States and the American Society for the Prevention of Cruelty to Animals. Assistant United States Attorney Julia C. Bowen is prosecuting the case for the government.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
Three Area Tax Preparers Indicted on Charges Involving Filing False Tax ReturnsRead the Press Release
St. Louis, MO – Three tax preparers who worked for Tax King, a local tax preparation business, have been charged for their alleged preparation of false tax returns for customers for tax years 2011 and 2012.
BROOKLYN WHITE, WILLIE KNOX and ANGEL BAILEY-DYSON, all of St. Louis, were each indicted by a federal grand jury on multiple counts of filing false tax returns. The indictment alleges that the three defendants falsely and fraudulently minimized their customers’ liability and thereby maximized their customers’ tax refunds.
"Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said Tanya Brewer, Assistant Special Agent in Charge, IRS Criminal Investigation, St. Louis Field Office. "Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."
If convicted, each count carries a maximum penalty of three years in prison and/or fines up to $100,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Tax Preparer Charged in Tax Fraud SchemeRead the Press Release
PHILADELPHIA - David Nixon, 50, of Philadelphia, Pennsylvania, was charged today by superseding indictment with 84 counts of aiding and assisting in the preparation of materially false income tax returns, announced United States Attorney Zane David Memeger.
According to the superseding indictment, Nixon, the owner of Economy Tax Services, prepared materially false federal income tax returns for tax years 2007 through 2009 which included fraudulent credits for children, earned income, tuition and fees, and residential energy efficiency property; incorrect filing status; and false or falsely inflated Form 1040 Schedule A deductions for charitable contributions and employee business expenses. The prepared and filed returns reduced the amount of tax owned by Nixon's clients and increased the amount of the refunds to the clients. The indictment alleges that as the result of the false and fraudulent income tax returns, Nixon's clients received more than $200,000 in fraudulently inflated refunds.
If convicted the defendant faces a maximum possible sentence of 252 years of in prison, a fine of $21 million, one year of supervised release, and a special assessment of $8,400.
The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.
An indictment or Information is only an accusation. A defendant is presumed innocent unless and until proven guilty.
Tax Preparation Business Owner and Son Convicted of Conspiring to Defraud the United States and Preparing False Tax ReturnsRead the Press Release
A Washington, D.C., tax return preparer and former Washington, D.C., public school teacher and her son, a current Washington, D.C., public school teacher, were convicted today by a federal jury of conspiracy and preparing and filing false tax returns, the Justice Department and the Internal Revenue Service (IRS) announced.
According to the evidence presented at trial, Sherri Davis, 42, of Washington, D.C., was the owner and operator of 2FT Fast Facts Tax Service, a tax return preparation business operating in Washington, D.C., from 2003 to 2012. In 2012, Sherri Davis changed the business name to Davis Financial Services and her son, Andre Davis, 24, was listed as the owner and operator of the business.
Sherri and Andre Davis were each convicted on one count of conspiracy to defraud the United States. Sherri Davis was also convicted of 25 counts of aiding and assisting in the preparation and filing of false federal income tax returns and three counts of filing false personal income tax returns. Andre Davis, a Washington, D.C., resident, was also convicted of one count of aiding and assisting in the preparation and filing of false tax returns.
“As we enter the 2015 filing season, tax return preparers should take note of today’s conviction,” said Principal Deputy Assistant Attorney General Caroline D. Ciraolo for the Department of Justice’s Tax Division. “The Department of Justice’s Tax Division, working with IRS-Criminal Investigation, the Offices of the U.S. Attorneys and other local, state and federal law enforcement partners, will identify, investigate and prosecute to the fullest extent of the law those individuals who willfully participate in the preparation and filing of false returns. These individuals are a threat to the integrity of the tax system, and will face felony charges, incarceration and substantial economic sanctions.”
At trial, the evidence established that Sherri and Andre Davis prepared and filed false tax returns for clients that included various false and fraudulent schedules, deductions, expenses and credits with the goal of reducing the amount of taxes owed by the taxpayers and obtaining larger refunds for the taxpayers than they were entitled to receive. In some instances, Sherri and Andre Davis and those working for them attached to the false tax returns false and fraudulent Schedules C that reported false business losses and false Schedules A that reported fraudulent itemized deductions. On some returns, the Schedule C business claimed on the return was completely fabricated. On other returns, the Schedule A included false or grossly inflated gifts to charity, job expenses and other miscellaneous expenses.
The evidence at trial further established that for calendar years 2007 through 2009, Sherri Davis filed her own false income tax returns in which she failed to report more than $300,000 in tax preparation fees that she received from her business.
“Intentionally preparing false tax returns is a criminal offense that reflects badly on the entire industry,” said Special Agent in Charge Thomas J. Kelly of IRS-Criminal Investigation’s Washington, D.C., Field Office. “As Sherri and Andre Davis found out today, it is not a good idea to file false tax returns and expect the IRS not to investigate and recommend prosecution. IRS-Criminal Investigation is committed to holding individuals accountable for their criminal actions.”
Sherri and Andre Davis will be sentenced on April 29 in the U.S. District Court for the District of Columbia by U.S. District Judge Thomas Hogan. The conspiracy conviction has a statutory maximum sentence of five years in prison and a $250,000 fine. Each of the remaining counts of conviction has a statutory maximum sentence of three years in prison and fine of $250,000.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the D.C. Office of Tax and Revenue Criminal Investigation Division, who investigated the case, as well as Trial Attorneys Jessica Moran, Tiwana Fleming and Mark McDonald for the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the District of Columbia for their substantial assistance.
Suburban Man Sentenced to 25 Years in Federal Prison for Cheating 455 Investors of $105 Million and Causing $34 Million LossRead the Press Release
CHICAGO ― A northwest suburban man was sentenced today for engaging in a lengthy investment fraud scheme in which he and a co-defendant swindled approximately $105 million from 455 investors who invested in funds they purported to operate. The defendant, DANIEL SPITZER, pleaded guilty to 10 counts of mail fraud last July on the day his trial was scheduled to begin in Federal Court. Spitzer misused the money he raised from investors for his own benefit and to make Ponzi-type payments to investors, resulting in a loss of $33.98 million to at least 279 victims, many of them elderly.
Spitzer, 55, of North Barrington and formerly of the U.S. Virgin Islands, caused “very substantial damage,” U.S. District Judge James Zagel said in imposing the sentence today, a day after he ordered Spitzer into federal custody. The judge also ordered restitution of $33.98 million.
Spitzer engaged in an “extended act of greed,” between late 2004 and early 2010, Assistant U.S. Attorney Madeleine Murphy argued at today’s hearing.
According to court records, Spitzer was the principal officer and sole shareholder of Kenzie Financial Management; the sole manager and member of Kenzie Services, LLC; the president of Draseena Funds Group, Corp.; the manager of DN Management Company, LLC; and the manager of Nerium Management Company.
Co-defendant ALFRED GEREBIZZA, 59, formerly of Crystal Lake and Palm Beach Gardens, Fla., was the secretary and a director of Draseena and a sales agent for the Kenzie Funds, who also held himself out as a trader. Gerebizza was convicted at trial last July of 10 counts of mail fraud and six counts of federal income tax fraud. He is in federal custody awaiting sentencing.
Through these entities, Spitzer controlled 12 investment funds collectively known as the “Kenzie Funds.” Spitzer and Gerebizza offered and sold to the public investments in the various Kenzie Funds in the form of membership interests and limited partnerships. Through sales agents and various marketing materials, they informed investors and potential investors that their investments would be used primarily in foreign currency trading, that the Kenzie Funds had never lost money, and that they had achieved profitable historical returns. The defendants had to continually raise funds through the solicitation of new investors in the Kenzie Funds to make payments on investments made by earlier investors, all of which they concealed and intentionally failed to disclose to both new and earlier investors. Although Spitzer and Gerebizza falsely represented to prospective investors and current investors that different Kenzie Funds had different levels of risk and different investment strategies, they commingled the money invested in all 12 Kenzie Funds, then misappropriated a significant portion, and only invested less than one-third of the approximately $105 million raised from investors.
The defendants represented to investors that the Kenzie Funds had rates of returns ranging from 4.52 percent to 13.54 percent over the prior five years, although the bank accounts for the Kenzie Funds reflected that the total net return during that period was less than one percent. As of June 30, 2009, they represented that the Kenzie Funds were worth approximately $250 million when, in fact, the Funds collectively had only approximately $4 million in their bank accounts.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and James C. Lee, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division. The Chicago Regional Office of the Securities and Exchange Commission assisted the investigation.
The government was represented by Assistant U.S. Attorneys Madeleine Murphy, Jason Yonan, and Jessica Romero.
Stockton Residents Indicted in Phony Tax Return SchemeRead the Press Release
FRESNO, Calif. — Two Stockton residents were indicted today for a conspiracy to fraudulently obtain tax refunds, United States Attorney Benjamin B. Wagner announced.
Vivian Marie Williams, 49, was charged with 44 counts of conspiracy, false claims to a government agency, identity theft, and aiding and assisting in the preparation of false and fraudulent tax returns. Darrell Lemont Morris, 43, was charged with one count of conspiracy.
According to the indictment, Williams was a tax preparer who operated out of her home using the business name Williams Financial Service. Between January 2010 and March 2011, Williams allegedly submitted tax returns for both legitimate clients and in the names of victims of identity theft. The tax returns for legitimate clients reported inflated business and wage income, which allowed the taxpayers to claim a higher tax refund as a result of the Earned Income Tax Credit and the Child Tax Credit. The tax returns for victims of identity theft were allegedly submitted without the knowledge of the taxpayers, and allowed Williams to collect tax refunds on their behalf. The indictment alleges that Morris conspired with Williams in the scheme to file tax returns on behalf of victims of identity theft, allowed Williams to use his bank accounts for the deposit of tax refunds, and then shared in the proceeds with Williams.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
If convicted, Williams faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count of filing a false claim; 15 years in prison and a $250,000 fine for each count of identity theft; and three years in prison and a $250,000 fine for each count of aiding in the preparation of false tax returns. Williams and Morris each face a maximum statutory penalty of 15 years in prison and a $250,000 fine for conspiracy. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Somerville Man Sentenced for Leading Armed Robbery ConspiracyRead the Press Release
BOSTON – A Somerville man was sentenced today for leading an armed robbery conspiracy and possessing an illegal firearm.
Antonio Correia, Sr., 45, of Somerville, was sentenced before U.S. District Court Judge Richard G. Stearns to 123 months in prison and five years of supervised release. In April 2014, Correia pleaded guilty to conspiracy to commit robbery, possession of a firearm in furtherance of a violent crime, and four counts of being a felon in possession of a firearm.
After selling five firearms, including a rifle and shotgun, to a cooperating witness, Correia sought to use the cooperating witness to identify a drug dealer whom he could rob. The cooperator provided this information to law enforcement officers who then created a sting operation using a fictitious target in Malden to investigate Correia. Correia arranged for five other men to participate in the planned robbery on Aug. 2, 2013, several of whom travelled to Massachusetts from New Jersey the day before. On that date, Correia and two men traveled to the alleged robbery site in a car driven by the cooperating witness, while three other co-conspirators followed in a pick-up truck. Correia and another man were each armed with a loaded, semi-automatic pistol. In addition to the two handguns, the six conspirators also possessed a starter’s pistol (which could be used to intimidate their victim by firing blanks), an electric taser, two knives, pepper spray, plastic zip ties, masks, and gloves. Once the two vehicles, which were being followed by law enforcement officers, arrived at the alleged site of the robbery, officers participating in the sting operation arrested all of the conspirators.
The five co-conspirators, Antonio Carreia, Jr., Marquis Simmons, Julio Rodriguez, Branden Correia, and Jokarly Fernandez, pleaded guilty to federal charges and were sentenced by Judge Stearns.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Malden Police Chief Kevin Molis; and Middlesex Sheriff Peter J. Koutoujian, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Michael Crowley of Ortiz’s Organized Crime Strike Force Unit.
Snoqualmie Washington Man Indicted for Extensive Benefits Fraud SchemeRead the Press Release
A federal grand jury has indicted a former federal employee for multiple counts of wire fraud and mail fraud, and making false statements in connection with an extensive scheme to fraudulently obtain federal and state benefits, announced Acting United States Attorney Annette L. Hayes. DARRYL LEE WRIGHT, 46, of Snoqualmie, Washington, will appear today in U. S. District Court in Tacoma at 2:30 p.m. His sister KAREN M. BEVENS, 43, of Duvall, Washington, who is charged in one of the counts, will appear for arraignment next week. The indictment was returned following an investigation that revealed that WRIGHT was making false and conflicting claims to various agencies in an effort to fraudulently obtain benefits. The charged criminal conduct allegedly occurred from 2005 to the present, during which WRIGHT is alleged to have fraudulently received more than $250,000 in benefits.
According to the indictment, WRIGHT made a variety of false claims in his scheme to defraud the Department of Veterans Affairs, the Social Security Administration, and the Washington State Department of Employment Security. False statements also were made to the Department of Commerce, the Office of Personnel Management, the Washington State Department of Social and Health Services and the U.S. Army.
The nine count indictment charges schemes to commit both wire fraud and mail fraud, making false statements to the Army, and making a false statement to the U.S. Department of Commerce.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by multiple agencies led by the Social Security Office of Inspector General (SSA-OIG). The Office of Inspector General of these agencies were involved in the investigation: Veterans Affairs (VA-OIG), Department of Commerce (DOC-OIG), Office of Personnel Management (OPM-OIG), and General Services Administration (GSA-OIG). Also contributing to the investigation is the FBI, U.S. Army Criminal Investigation Division, the Washington National Guard, the Washington Employment Security Department and the Washington State Department of Social and Health Services.
The case is being prosecuted by Assistant United States Attorney David Reese Jennings.
Smith County Man Sentenced for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 39-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Micol Jauron Sears pleaded guilty on Sep. 3, 2014 to conspiracy to possess with intent to distribute crack cocaine and was sentenced to 168 months in federal prison today by U.S. District Judge Michael H. Schneider. Sears was also ordered to submit to forfeiture of $25,000.
According to information presented in court, on Apr. 9, 2014, a federal search warrant was executed at Sears’ residence in Tyler during which law enforcement officers located 1.8 kilograms of crack cocaine, six firearms and a safe containing $39,900 in cash. Sears had previously been indicted by a federal grand jury on Mar. 26, 2014 and charged with drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation, the Tyler Police Department, and the FBI HIDTA Task Force and prosecuted by Assistant U.S. Attorney Bill Baldwin.Sentencings for January 22 - 27, 2015Read the Press Release
Wayne Bailey, 39, of West Jordan, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 27, 2015, for conspiracy to possess with intent to distribute heroin resulting in death. Bailey was arrested in West Jordan, Utah. He received 97 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Heather L. Fletcher, 27, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 26, 2015, for conspiracy to possess with intent to distribute heroin. Fletcher was arrested in Rock Springs, Wyoming. She received 37 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $150.00 fine and a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Skyeler I. French, 28, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 26, 2015, for conspiracy to possess with intent to distribute heroin. French was arrested in Rock Springs, Wyoming. He received 87 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Shaelynn Dawn Smith, 23, of Evanston, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 26, 2015, for conspiracy to possess with intent to distribute, and to distribute, at least 350 grams but less than 500 grams of methamphetamine. Smith was arrested in Evanston, Wyoming. She received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $150.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Erik M. Styles, 27, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 22, 2015, for conspiracy to possess with intent to distribute heroin and distribution of heroin. Styles was arrested in Rock Springs, Wyoming. He received 37 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Scranton Man Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 28-year-old Scranton resident pleaded guilty today before Senior United States District Court Judge James M. Munley in Scranton, to conspiracy to commit sex trafficking of a minor.
According to United States Attorney Peter Smith, Sean Cantelmo admitted to conspiring with others to have a 17-year-old female engage in prostitution and illegal sexual activity during February through May 2014. Cantelmo admitted that he and others used a cell phone to post advertisements for "escort services" involving the minor female on a website, rented motel rooms in Lackawanna and Luzerne Counties to facilitate the prostitution activities, and purchased condoms for the minor to use when engaging in commercial sex acts.
Cantelmo was indicted by a federal grand jury in August 2014, as a result of an investigation by agents of the Homeland Security Investigations and the Pennsylvania State Police.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled Cantelmo’s sentencing for May 5, 2015. Cantelmo faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Rosebud Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Anthony One Star, Jr., age 27, was indicted on January 14, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 26, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
One Star is alleged to have forcibly assaulted, resisted, opposed, and impeded a Rosebud Sioux Tribe law enforcement officer in November 2014, in Rosebud. The incident resulted in physical contact with the officer.
The charge is merely an accusation and One Star is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
One Star was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Romanian National Admits Role as Ringleader of $5 Million ATM Skimming SchemeRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Sweden and extradited to the United States admitted today to directing a large-scale scheme that stole bank account information through a process commonly referred to as “ATM skimming,” in which conspirators secretly installed card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Marius Vintila, a/k/a “Dan Girneata,” 31, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of a superseding indictment, conspiracy to commit bank fraud, and Count Two, aggravated identity theft.
In July 2013, as federal agents in New Jersey arrested various members of his large-scale ATM skimming scheme, Vintila fled the United States. On Sept. 24, 2013, he was apprehended in Sweden and subsequently extradited to the United States. Vintila has been held without bail since his arrival in the United States in February 2014.
According to documents filed in this and other cases and statements made in court:
Vintila was the ringleader of an extensive ATM skimming scheme that targeted thousands of bank customers and defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million.
Vintila and his conspirators constructed sophisticated card-reader devices capable of reading and storing customers’ bank account information as the customers performed routine bank transactions at ATMs. Vintila and his conspirators also concealed pinhole cameras in panels designed to match existing ATM components. Vintila then taught and directed several conspirators to install the devices on ATMs. Once installed, the card-reader devices secretly read identity and account information contained on the magnetic strip of customer ATM cards. The pinhole cameras recorded customer keystrokes as they entered their personal identification numbers.
After the account information was stolen, Vintila and his conspirators used the stolen data to create thousands of fraudulent ATM cards, which they used to withdraw millions of dollars from customers’ bank accounts. Vintila also used an alias, “Dan Girneata,” to open bank accounts, rent vehicles and rent multiple self-storage units where he stored skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds. Vintila also provided other conspirators with fake passports and aliases to use in furtherance of the scheme.Vintila’s ATM skimming operation is one of the largest ever uncovered by law enforcement. To date, 16 individuals, including Vintila, have been charged. Eleven of those 16 have pleaded guilty. Bogdan Radu, 30, who was charged separately, helped design and construct the ATM skimming devices used during a large portion of the scheme. Radu pleaded guilty to bank fraud conspiracy and aggravated identity theft in February 2014. Enes Causevic, 24, Marius Cotiga, 35, Constantin Ginga, 53, Dezso Gyapias, 29, Ioan Leusca, 30, Constantin Pendus, 30, and Emil Revesz, 30, all charged separately from Vintila, participated in Vintila’s ATM skimming scheme by installing or removing the devices, and by subsequently using the fraudulent ATM cards to withdraw cash from compromised bank accounts. Florin Apetrei, 18, Luis Franco, 23, and Mirel Hadzalic, 24, participated in the scheme by using the fraudulent ATM cards to withdraw cash. Causevic, Cotiga, Ginga, Gyapias, Leusca and Revesz all pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. Apetrei, Cotiga, Pendus, Franco and Hadzalic pleaded guilty to bank fraud conspiracy. For their roles in the scheme, Judge Martini sentenced Ginga, Gyapias and Leusca each to 57 months’ imprisonment. Franco and Pendus each received sentences of 33 months in prison. Hadzalic and Apetrei each received 34 and 24 months in prison, respectively. Causevic, Cotiga, Radu and Revesz are still await sentencing.
Dinu Horvat, 28, who was charged as a co-defendant along with Vintila, has pleaded not guilty, and is scheduled to stand trial in March 2015. Charges remain pending against Alin Dumitru Carabus, 40, Ionut Vasile Ciurba-Stana, a/k/a “Ciorba,” 28, and Robert Eduard Mate, a/k/a “Chioru,” 29, three additional members of the conspiracy who were charged by indictment on April 16, 2014. Carabus, Ciurba-Stana, and Mate were all apprehended in Spain, and requests for extradition to the United States are pending.
The bank fraud conspiracy charge to which Vintila pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine. Vintila is scheduled for sentencing on May 5, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Carl Agnelli, along with special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge John P. Woods, with the investigation leading to today’s guilty plea.
The charges against Horvat, Carabus, Ciurba-Stana and Mate are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division, Economic Crimes Unit, in Newark.
15-037
Defense Counsel: Brian Neary Esq., Hackensack, New Jersey
Vintila, Marius Superseding Indictment
Rocky Mount Tax Service Owner Sentenced for Tax FraudRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court yesterday, United States District Judge Terrence W. Boyle sentenced TINA LURETHA TYREE JOHNSON, 46, of Rocky Mount, North Carolina to 30 months imprisonment and 3 years of supervised release. On July 18, 2013, JOHNSON pled guilty to Tax Fraud and Aiding and Abetting in violation of Title 18, United States Code, Section 287 and 2.
U.S. Attorney Walker stated, “Our tax system relies on the honesty of tax payers with a heightened duty of honesty expected from professional tax preparers. Whenever someone like JOHNSON deliberately files false returns, the U.S. Attorney’s Office in support of the IRS will pursue the matter through the Courts as provided by our laws.”
According to the Criminal Information filed on January 31, 2013, JOHNSON, beginning in or about January 2008 and continuing until on or about June 2008, did knowingly make and present, and caused to be made and presented, to the Internal Revenue Service claims against the United States for payment that were false by preparing federal income tax returns for individuals totaling approximately $40,867.00. Johnson’s sentence was based on all relevant tax fraud conduct, not just the $40,867 list in the Criminal Information, which totaled over $400,000 in actual loss and $1 million in intended loss to the IRS.
“Filing a truthful, accurate federal tax return is a responsibility that hardworking taxpayers take very seriously, and so should their tax preparers, said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. This sentence is a clear message to unscrupulous tax return preparers, such as Tina Johnson, that with criminal activity and greed comes severe consequence. I would encourage citizens to avoid being taken advantage of by seeking out credentialed, reputable tax preparers during the current filing season.”
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney David Bragdon is handling the sentencing on behalf of the government.
Rhode Island Real Estate Businessman Convicted of Tax FraudRead the Press Release
WASHINGTON – A federal jury sitting in Providence, Rhode Island, convicted a Cranston, Rhode Island, man of one count of corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), one count of tax evasion and two counts of aiding and assisting in the preparation and filing of false corporate tax returns, the Justice Department and the IRS announced.
John Fall was remanded into custody after the jury verdict on Monday. Fall faces a statutory maximum sentence of 14 years in prison and a $1 million fine at his sentencing on April 28 before U.S. District Judge John J. McConnell Jr. for the District of Rhode Island.
According to the evidence presented at trial, Fall was a real estate consultant who bought, sold and brokered real estate. Fall also participated in handling the financial affairs of his wife and her businesses, including her dental practice, Comfort Dental Inc., and Broad Street Investments. Between 1999 and 2010, Fall used numerous nominee entities and business names to conceal his business and financial transactions. Fall also used multiple bank accounts, including commingled or “warehouse” bank accounts, in at least six states to conceal his financial transactions, as well as certain financial transactions of Comfort Dental and Broad Street Investments. To further disguise business and financial transactions, Fall used fake names and aliases to conceal his ownership and control over his nominee entities.
The evidence at trial proved that Fall filed false federal income tax returns for 1998 and 1999, and failed to file any tax returns for the years 2000 through 2010. The IRS audited Fall for 1998 through 2000, assessing him taxes totaling approximately $72,000.
The evidence at trial further established that Fall caused the filing of false tax returns on behalf of Comfort Dental for the years 2005 through 2007. Fall caused his wife’s businesses to make payments to his various entities which were falsely recorded on the corporate tax returns as deductible business expenses. When Comfort Dental and Fall’s wife were audited civilly by the IRS in late 2008, Fall attempted to obstruct the audit by encouraging his wife’s accountant not to provide the IRS with information requested through an IRS summons, and instead provided false and fraudulent information and documentation to the IRS concerning the nature of the payments by Comfort Dental and Broad Street Investments to his various entities. Fall also attempted to obstruct his wife’s compliance with an IRS summons.
This case was investigated by special agents with the IRS – Criminal Investigation. The case is being prosecuted by Assistant Chief John Kane and Trial Attorney Jeffrey Bender with the Justice Department’s Tax Division.
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15-097IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Remsen Man Pleads Guilty to Violations of Clean Water ActRead the Press Release
Contact: Steve Young
A man who was employed by a pork processing plant and oversaw the facility’s wastewater treatment lagoons pled guilty on December 16, 2014, in federal court in Sioux City to knowingly discharging a pollutant thereby resulting in a fish kill.
Michael J. Wolf, age, 57 from Remsen, Iowa, was convicted of one count of discharging pollutant in a water of the United States.
At the plea hearing, Wolf admitted in or about August, 2012, Sioux-Preme Packing Corporation contracted with a company to remove and replace debris from the SPC wastewater treatment lagoons, and that beginning on October 23, 2012 and continuing to October 24, 2012, he discharged the contents of the treatment lagoons (which included pollutants such as biological material and agricultural waste) through a valve, pipe and pump building into a tributary of the West Branch of the Floyd River. Wolf admitted that between October 23 and 24th, 2012, he intentionally and unlawfully discharged approximately 845,000 gallons of untested wastewater and pollutant into the tributary over an 11.5 hour period.
On October 27, 2012, the IDNR Spencer Field Office received reports of cloudy water and stressed fish downstream of the SPC facility and began investigating. Two days later, IDNR investigators observed dead fish and discolored water downstream of the SPC facility.
On November 2, 2012, the Iowa Department of Natural Resources Fisheries Bureau finished conducting their fish kill assessment. Based on observations by fisheries staff from the confluence of the unnamed tributary and West Branch of the Floyd River, and extending downstream 11.13 miles, fish of various species were killed and more were otherwise negatively affected by the criminal discharge. .
Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Wolf remains free on bond previously set pending sentencing. Wolf faces up to three years’ imprisonment, a fine of not less than $5,000 up to $50,000 per day of violation, $100 in special assessment, and up to one year of supervised release following any imprisonment.The case was investigated by the United States Environmental Protection Agency and the Iowa Department of Natural Resources and is being prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4091.
Pennsylvania Doctor and Receptionist Charged with Running "Pill Mill"Read the Press Release
PHILADELPHIA – William J. O’Brien III, 49, and Angela Rongione, 29, both of Philadelphia, were charged by indictment, unsealed today, with running a “pill mill” from O’Brien’s medical offices in Philadelphia and Levittown, PA, announced United States Attorney Zane David Memeger. Both defendants are charged with one count of conspiracy to distribute controlled substances. O’Brien, a doctor of osteopathic medicine, is also charged with 26 counts of illegally distributing oxycodone, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, outside the usual course of professional practice and for no legitimate medical purpose.
According to the indictment, between January 2014 and December 2014, O’Brien’s so-called Apatients@ could obtain prescriptions for addictive and dangerous controlled substances for a fee and without a physical examination or any other medical care or treatment. O’Brien typically charged customers $250 cash for the first appointment to buy prescriptions and $200 for each appointment to obtain refills. O’Brien allegedly falsified “medical” records to make it look as though customers had received physical examinations and medical treatment from him when they had not. It is further alleged that O’Brien was willing to exchange favors for higher doses of narcotics. For example, on or about October 2, 2014, O’Brien allegedly offered to trade a prescription for a sex act.
If convicted, defendant O’Brien faces 20 years in prison for the conspiracy charge and five years for each of the distribution counts and substantial fines and criminal forfeiture. Defendant Rongione faces 20 years in prison for the conspiracy charge.
The case was investigated by the FBI, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorney M. Beth Leahy.
Pediatric Nurse Pleads Guilty to Sexual Exploitation of Children in His CareRead the Press Release
SAN DIEGO, CA – Michael William Lutts, a 50-year-old foster parent and pediatric nurse, pleaded guilty in federal court today to sexually exploiting a two-month-old premature boy and an 11-month-old girl who had been placed in his care last summer.
According to his plea agreement, Lutts admitted to 15 instances in July and August in which he photographed and videotaped the babies in sexually explicit situations at both his home and workplace. In one image, the defendant photographed his own exposed genitals beside the infant, who was still wearing his hospital bracelet. In some of the images and videos, the baby is crying as Lutts sexually abuses him. Lutts also admitted emailing sexually explicit images of children to others.
Lutts pleaded guilty to two counts of sexual exploitation of a minor and one count of distribution of child pornography before U.S. Magistrate Judge Jill L. Burkhardt. He faces up to 80 years in prison, and has agreed to forfeit his College area home where most of the crimes occurred.
“This is a deeply disturbing case,” said U.S. Attorney Laura Duffy. “We will do everything in our power to protect our precious, defenseless children from sexual abuse and exploitation, especially at the hands of caregivers who are supposed to keep them safe .”
FBI Special Agent in Charge Eric S. Birnbaum commented, “Though the FBI investigates many types of criminal investigations, it is particularly disturbing when the victims are sexually exploited children or infants. When this type of sexual exploitation takes place, the FBI and our law enforcement partners will aggressively pursue those who would exploit and abuse children, and bring them to justice."
DEFENDANT Case Number: 14CR2542-JAH Michael William Lutts Age: 50 San Diego, California CHARGESCounts 1, 17: Sexual Exploitation of a Minor, in violation of 18 U.S.C. §2251(a)
Maximum Penalties: Thirty years in prison, mandatory minimum 15 years per countCounts 16: Distribution of Child Pornography, in violation of 18 U.S.C. §2252(a)(2)
INVESTIGATING AGENCIES
Maximum Penalties: Twenty years in prison, mandatory minimum 5 yearsFederal Bureau of Investigation
Pasadena Man Convicted for Conspiracy to Distribute and Receive Child PornographyRead the Press Release
Baltimore, Maryland – A federal jury convicted Howard James Clem IV, a/k/a “Jamie,” age 33, of Pasadena, Maryland, late yesterday for conspiracy to distribute and receive child pornography, and for receipt and possession of child pornography. U.S. District Judge Marvin J. Garbis ordered that Clem be immediately taken into custody.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Anne Arundel County Police Chief Tim Altomare.
According to the evidence presented at Clem’s six day trial, Clem met Erin Elizabeth Mali in a mobile social networking and dating application in September 2012. Many of the communications exchanged by Mali and Clem, and images Mali sent to Clem focused on graphic sexual conduct involving prepubescent minors. Mali sent Clem images depicting prepubescent minors engaged in sexually explicit conduct, including a prepubescent female whom Mali and Clem identified by name.
According to witness testimony, on June 3, 2013, the social networking and dating application and website captured the images and communications exchanged by Mali and Clem, including child pornography, which caused a “cybertip” to be generated to the National Center for Missing and Exploited Children. An investigation by the Anne Arundel County Police Department resulted in a search warrant being executed at Clem’s and Mali’s residences and on their social networking accounts.
As a result of his conviction, Clem will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Clem faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison for conspiracy to distribute and receive child pornography and for each of two counts of receipt of child pornography; and a maximum of 20 years in prison for possession of child pornography, each followed by up to lifetime of supervised release. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Clem on May 27, 2015 at 10:00 a.m.
Erin Elizabeth Mali, age 32, of Arnold, Maryland, previously pleaded guilty to conspiracy to distribute and receive child pornography, and to distribution of child pornography. Mali is also detained and Judge Garbis has scheduled her sentencing for March 3, 2015, at 1:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Leo J. Wise, who are prosecuting the case.
Operator of Local Flea Market Sentenced on Federal Intellectual Property ChargesRead the Press Release
St. Louis, MO – JACK FRISON, SR. was sentenced to twenty-four months of imprisonment on multiple charges relating to his involvement in the sale of counterfeit goods and DVDs.
According to testimony presented at trial in June, for more than two decades, Frison owned and operated the Frison Flea Market in Pagedale, MO. Vendors paid Frison a rental fee to rent and operate sales booths at his Flea Market. For more than ten years, many of Frison’s vendors openly sold counterfeit goods from their booths at the Market. The counterfeit goods included clothing, footwear, purses, accessories, movie DVDs and music CDs. Some of the vendors sold counterfeit purses and similar luxury items bearing marks owned by Coach, Louis Vuitton, Dolce & Gabbana and others. Frison knew that the goods were counterfeit and allowed vendors to continue selling such goods. Rather than removing vendors selling illegal goods, Frison fined them instead, adding to his income.
Frison, of Frontenac, MO, was convicted of one felony count of conspiracy to traffic in counterfeit goods, one felony count of aiding and abetting felony copyright infringement and one felony count of aiding and abetting trafficking counterfeit goods. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant United States Attorneys John Bodenhausen and Jennifer Roy handled the case for the U.S. Attorney?s Office.
Ohio and Pennsylvania men sentenced for cocaine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jermell Simpson, 31, of Columbus, Ohio, and Mario Walton, 33, of Pittsburgh, Pennsylvania, were sentenced today for distributing crack cocaine, United States Attorney William J. Ihlenfeld, II, announced today.
Walton was sentenced today to 30 months in prison with credit for time served since July 2014. An investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that he sold crack cocaine in July 2014 near Bridgeport, West Virginia. He pled guilty in October 2014 to one count of “Distribution of Cocaine Base, Aiding and Abetting.”
Simpson was sentenced today to 46 months in prison. An investigation by the Mon Valley Drug & Violent Crime Task Force revealed that he sold crack cocaine in Monongalia County, West Virginia. He pled guilty in September 2014 to one count of “Distribution of Cocaine Base.”
Assistant U.S. Attorney Zelda Wesley prosecuted the cases on behalf of the government.
U.S. District Judge Irene M. Keeley presided.