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16 March 2015
Twenty-Four Years in Federal Prison for Forestville Man Convicted for Cocaine Distribution and Illegal Possession of FirearmsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced David Dwayne Rudolph, age 33, of Capitol Heights, Maryland today to 24 years in prison, followed by five years of supervised release, for possession with intent to distribute crack and powder cocaine and marijuana; and for being a felon in possession of a firearm. Judge Chuang also ordered that Rudolph forfeit four firearms and $9,432 in cash seized during the investigation, as well as a 2005 GMC Yukon used by Rudolph to facilitate his drug trafficking.
“Despite four prior state felony convictions, David Dwayne Rudolph was caught with an arsenal of loaded weapons and other tools of the drug trade,” said U.S. Attorney Rod J. Rosenstein. “If we want to continue reducing violent crime, we need to show zero tolerance for armed criminals.”
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; and Chief Mark A. Magaw of the Prince George’s County Police Department.
According to his plea agreement, on April 8, 2014, Prince George’s County Police officers executed a search warrant at a Forestville apartment used by Rudolph to store drugs. The search recovered a semi-automatic handgun, 160 grams of crack cocaine, 115 grams of marijuana, and three digital scales and a glass container with cocaine residue.
On June 26, 2014, Prince George’s County Police officers executed an arrest warrant for Rudolph when he was driving his vehicle, a 2005 GMC Yukon. Officers located $1,725 in cash, 39 bags containing a total of 17 grams of crack cocaine, and several cell phones in the car. The next day, law enforcement executed a search warrant at Rudolph’s residence in Forestville. During the search, officers recovered a bullet proof vest, approximately 690 grams of crack cocaine, 55 grams of powder cocaine, 1,205 grams of marijuana, and $7,707 in cash. In addition, law enforcement recovered a .45 caliber pistol loaded with 12 rounds of ammunition, a 9mm pistol loaded with 16 rounds of ammunition, and a .32 caliber pistol loaded with 11 rounds of ammunition. Rudolph had previous felony convictions and was prohibited from possessing a firearm or ammunition.
United States Attorney Rod J. Rosenstein praised the ATF and Prince George’s County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Leah J. Bressack and Lindsay Eyler Kaplan, who prosecuted the case.
Topeka Man Pleads No Contest in Two Armed RobberiesRead the Press Release
TOPEKA, KAN. - A Topeka man pleaded no contest Monday to federal armed robbery charges, U.S. Attorney Barry Grissom said.
Henry Earl Sirvira, 46, Topeka, Kan., entered a plea of nolo contendere to two counts of commercial robbery and one count of brandishing a firearm during a robbery. During the plea hearing, prosecutors told the judge that on July 29, 2013, Sirvira and co-defendant Quartez Norwood robbed the EZ Payday Advance at 2613 S.W. 21st Street in Topeka. Sirvira pointed a handgun at an employee and threatened to kill him unless he opened the safe.
On Aug. 3, 2013, Sirvira and Norwood robbed the Family Dollar Store at 2616 S.E. 6th Street in Topeka. Norwood pointed a gun at the clerk while Sirvira assaulted a patron in another part of the store.
Sentencing is set for June 1. Both parties have agreed to recommend a sentence of 11 years in federal prison.
Co-defendants include:
Quartez Norwood, who was sentenced to 180 months.
Henry Lavelle Davis, who was sentenced to 84 months.
Robert Wayne Redmond, who was sentenced to 60 months.
Xavier Leron Sims, who was sentenced to 35 months.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.
Topeka Business Owner Sentenced in Check Kiting SchemeRead the Press Release
TOPEKA, KAN. - A Topeka business owner who pleaded guilty to writing more than 5,000 insufficient fund checks in a check kiting scheme was sentenced Monday to 37 months in federal prison, U.S. Attorney Barry Grissom said. The defendant was ordered to pay more than $538,000 in restitution.
John Charles Humpage, III, 49, Topeka, Kan., pleaded guilty to one count of bank fraud. In his plea, he admitted that in 2008 he defrauded the Educational Credit Union, Kaw Valley State Bank and Alliance Bank. Humpage did business under various names including Humpco, Inc., Crescent Limousine, Yellow Cab of Topeka and Wire and Glass Lease, LLC. He carried out a scheme to defraud the banks by exchanging and cross-depositing insufficiently funded checks between two or more of his bank accounts. In that manner, he generated artificially inflated account balances. The check kiting scheme utilized bank system Afloat@ periods for purposes of creating artificially enhanced bank account balances.
From May through August 2008 he exchanged and cross deposited more than 5,000 insufficient checks and created in excess of $78 million in aggregate deposit amounts. Those deposits falsely inflated his bank account balances by more than $600,000.
Grissom commended the FBI and Assistant U.S. Attorney Richard Hathaway for his work on the case.
Three Individuals Charged with Defrauding Banks and Usda Export Financing ProgramRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that on February 20, 2015, a federal grand jury in New Haven returned a 23-count indictment charging BRETT C. LILLEMOE, 45, of Minneapolis, Minn., PABLO CALDERON, 59, Darien, Conn., and SARAH ZIRBES, 39, Minneapolis, Minn., with conspiracy, fraud and money laundering offenses related to a multimillion dollar scheme to defraud banks participating in a USDA-backed export financing program. The indictment alleges that the three defendants engaged in a conspiracy to defraud U.S. financial institutions that secured loans to Russian Banks based on altered documents. The loans were backed by a credit guarantee program run by the U.S. Department of Agriculture (USDA), and when the loans went into default and were subsequently not paid back, the USDA lost millions of dollars.
LILLEMOE was arraigned on March 13 in Bridgeport federal court. He entered a plea of not guilty to all of the charges against him and was released on a $250,000 bond. ZIRBES was arraigned on March 6, pleaded not guilty and is released on a $100,000 bond. CALDERON is scheduled to be arraigned this afternoon at in Bridgeport.
As alleged in the indictment, the USDA provides credit guarantees through the Export Credit Guarantee Program (GSM-102), which is designed to encourage financing of commercial exports of U.S. agricultural products. The GSM-102 program guarantees credit extended by U.S. financial institutions in the U.S. to approved foreign banks, including banks in Russia. As part of the program, the Commodity Credit Corporation (CCC), which is an agency and instrumentality of the USDA, enters into payment guarantees (“credit guarantees”).
The credit guarantees are designed to encourage exports to buyers in foreign countries – mainly developing countries. The program operates in cases where credit is necessary to increase or maintain U.S. exports to a foreign market and where U.S. financial institutions might be otherwise unwilling to provide financing without the guarantee. In providing the credit guarantee facility, the CCC seeks to expand market opportunities for U.S. agricultural exporters and assist long-term market development for U.S. agricultural commodities.
In connection with the GSM-102 program, a foreign importer that has contracted to buy U.S. agricultural products can apply for a letter of credit (“LOC”) from a foreign bank that has been approved by the USDA’s Foreign Agricultural Service (FAS). The foreign bank then issues a letter of credit in favor of the U.S. exporter. The U.S. exporter then, consistent with the requirements of the GSM-102 program, presents proper shipping documents to an approved U.S. financial institution, including a copy of an original bill of lading, certificate of origin, and evidence of export. The U.S. financial institution then provides funds to the U.S. exporter which, in exchange, assigns the rights to the proceeds payable under the letter of credit from the foreign bank to the U.S. financial institution in the same dollar-denominated amount, less any fees. If the foreign bank defaults on its payments to the U.S. financial institution, the U.S. financial institution may submit a claim to the USDA FAS under the guarantee for up to 98 percent of the payment amount owed at the time of the default.
The indictment alleges that between September 2007 and January 2012, LILLEMOE, CALDERON, ZERBES and others devised and executed a scheme to defraud various U.S. financial institutions, including Deutsche Bank A.G. and Colorado-based CoBank ACB, by presenting false and altered shipping documents, including altered bills of lading, in connection with securing funding on loans guaranteed by the GSM-102.
The indictment alleges that LILLEMOE, CALDERON, ZERBES established multiple entities with separate names for the purpose of obtaining a greater share of the allocation of guarantees from the GSM-102 program, and used multiple bank accounts in the names of the various entities in order to further create the appearance that the entities were operating as separate and unrelated entities. The defendants then, in various ways, paid for or otherwise acquired bills of lading and other shipping documents for shipments of agricultural products that they did not physically ship and for which they did not participate in the physical movement of the products in any capacity.
It is further alleged that LILLEMOE entered into agreements with foreign banks, including International Industrial Bank (IIB) in Russia, to provide them capital that would be made available to them from a U.S. financial institution through the use of the GSM-102 program. LILLEMOE subsequently obtained letters of credit from the foreign banks. LILLEMOE, CALDERON, and ZIRBES and others then altered copies of certain shipping documents, including bills of lading marked “Copy non negotiable,” by whiting out portions of the documents, stamping the word “original” on the documents, and adding shading on certain sections of the bills of lading. The defendants also prepared and executed documents termed “commercial invoices” purporting to represent sales of agricultural commodities between entities that they controlled, as well as between entities that they controlled and other entities.
The defendants then used these fraudulent documents to obtain large amounts of capital from U.S. banks in connection with the GSM-102 program, and then provided the funds to the foreign banks in exchange for a percentage fee for themselves and their various entities. Although the foreign banks were obligated to repay the funds to the U.S. financial institutions by virtue of the letters of credit issued to the U.S. financial institutions, in a number of instances, the foreign banks failed to do so. Nevertheless, LILLEMOE, CALDERON, ZIRBES and their various entities retained millions of dollars of fees they had collected in connection with the GSM-102 transactions.
Through this alleged scheme, the foreign banks defaulted on over $10 million of loans for which the USDA’s GSM-102 program had to pay out the guarantees.
The indictment further alleges that, on November 17, 2011, CALDERON stated to federal agents investigating this matter that LILLEMOE was his “supplier” and that he, CALDERON, “purchased commodities from Lillemoe.” In truth, LILLEMOE was not CALDERON’s supplier and CALDERON did not purchase commodities from LILLEMOE. Rather, LILLEMOE was a partner and co-conspirator with whom CALDERON orchestrated paper-only transactions.
The indictment charges LILLEMOE, CALDERON and ZIRBES with one count of conspiracy to commit wire fraud and bank fraud, and multiple counts of wire fraud, offenses that carry a maximum term of imprisonment of 20 years on each count. The indictment also charges each defendant with one count of bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of money laundering, which carries a maximum term of imprisonment of 10 years. In addition, CALDERON is charged with one count of making a false statement to federal law enforcement, which carries a maximum term of imprisonment of five years.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation Division and U.S. Department of Agriculture, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and John H. Durham.
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(203) 821-3722 [email protected]Three Defendants Plead Guilty in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Three members of the same family entered guilty pleas today in connection with a $5.6 million mortgage fraud scheme in Bakersfield, U.S. Attorney Benjamin B. Wagner announced.
Bakersfield residents Eliseo Jara Jr., 35, and his brother, Sergio Jara, 33, pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud. Sergio Jara’s wife, Melissa Jara, 34, pleaded guilty to wire fraud.
According to court documents, from 2007 to 2010, the Jara brothers conspired with others to use straw buyers to purchase residential properties in Bakersfield developed by Jara Brothers Investments (JBI) and Pershing Partners LLC. The conspirators paid straw buyers to purchase the properties from JBI and Pershing Partners, and funded the purchases using loans they obtained for the straw buyers based on false and fraudulent loan applications. Melissa Jara admitted to causing false loan applications and supporting documents to be submitted to a lender in order for a straw buyer to finance the purchase of a property from an LLC that she owned and controlled.
As part of their plea agreements, each defendant agreed to forfeit their interests in six properties in Bakersfield, a 2007 Lexus, and approximately $110,419 seized from a bank account. Additionally, Eliseo Jara agreed to a personal forfeiture money judgment of $5,664,250. Sergio Jara agreed to a personal forfeiture money judgment of $4,743,500. Melissa Jara agreed to a personal forfeiture money judgment of $534,750. Melissa Jara also agreed to deposit $100,000 with the Court toward her victim restitution obligation prior to her sentencing hearing.
This case is the product of a joint investigation by the Internal Revenue Service‑Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Megan A. S. Richards are prosecuting the case.
The maximum sentence for the conspiracy charge and the wire fraud charge is 30 years in prison and a $1 million fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Four co-defendants have previously pleaded guilty. Antonio Perez-Marcial was sentenced on May 12, 2014 to 46 months in prison. Arlene Mojardin is scheduled to be sentenced on May 18, 2015. Candace Gonzales is scheduled to be sentenced on June 8, 2015. Ricardo Salinas is set for sentencing on June 29, 2015. The indictment charges two additional defendants, who are set to proceed to trial on April 28, 2015, before Judge Ishii. The charges as to these defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Taiwan Businessman Sentenced to 24 Months for Conspiring to Violate U.S. Laws Preventing Proliferation of Weapons of Mass DestructionRead the Press Release
Assistant Attorney General for National Security John P. Carlin; U.S. Attorney Zachary T. Fardon of the Northern District of Illinois; Special Agent in Charge Robert J. Holley of the FBI’s Chicago Office; Special Agent in Charge Gary Hartwig of U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) in Chicago; and Acting Special Agent in Charge David Nardella of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement of the Chicago Field Office announced today that a former resident of Taiwan, who the United States has linked to the supply of weapons manufacturing machinery to North Korea, was sentenced today to serve 24 months in federal prison by U.S. District Court Judge Charles R. Norgle of the Northern District of Illinois.
The defendant, Hsien Tai Tsai, 69, pleaded guilty in October 2014, admitting that he conspired with others to interfere with and obstruct U.S. regulations that seek to disrupt the proliferation of weapons of mass destruction. When imposing sentence, Judge Norgle credited Tsai for the substantial assistance he provided, and would continue to provide, to the government in its investigation of weapons of mass destruction proliferators. Tsai, also known as Alex Tsai, was arrested in May 2013 in Tallinn, Estonia, and was later extradited to the United States, where he remains in federal custody.
“Hsien Tai Tsai violated a critical sanctions regime and undermined and interfered with U.S. efforts to disrupt North Korea's weapons of mass destruction and advanced weapons programs,” said Assistant Attorney General Carlin. “These sanctions are meant to raise the cost for WMD proliferators to do business and deter others from proliferating by denying them access to our financial and commercial systems. This prosecution makes clear that we will use all of our tools to identify and arrest WMD proliferators and to disrupt their efforts to undermine our country's security. I’d like to thank all who helped with this investigation and prosecution.”
“Aggressive enforcement of U.S. laws targeting those who supply goods, services or other support to proliferators of weapons of mass destruction is vital to ensuring global safety,” said U.S. Attorney Fardon. “As this case demonstrates, companies and individuals who seek to evade these laws will confront an international law enforcement community working cooperatively and effectively to stem these threats.”
According to court documents, Tsai was associated with at least three companies based in Taiwan – Global Interface Company Inc., Trans Merits Co. Ltd., and Trans Multi Mechanics Co. Ltd. – that purchased and then exported, and attempted to purchase and then export, from the United States and other countries machinery used to fabricate metals and other materials with a high degree of precision.
In January 2009, under Executive Order 13382, which sanctions proliferators of weapons of mass destruction and their supporters, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated Tsai, Global Interface and Trans Merits as proliferators of weapons of mass destruction, isolating them from the U.S. financial and commercial systems and prohibiting any person or company in the United States from knowingly engaging in any transaction or dealing with them. At that time, the Treasury Department said that Tsai was designated because he provided, or attempted to provide, financial, technological, or other support for, or goods or services in support of, the Korea Mining Development Trading Corporation, which the Treasury Department has stated is North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons. Additionally, Tsai he had been involved in shipping items to North Korea that could be used to support North Korea’s advanced weapons program. After the OFAC designations, Tsai and others continued to conduct business together, but attempted to hide Tsai’s and Trans Merit’s involvement in those transactions by conducting business under different company names, including Trans Multi Mechanics. Later, in 2013, Trans Multi Mechanics was also designated by OFAC.
In pleading guilty, Tsai admitted that he was involved in multiple commercial and financial transactions to undermine the sanctions against WMD proliferations, including the purchase of a Bryant center hole grinder from a U.S. company based in suburban Chicago, and exported it to Taiwan in 2009 using the company Trans Multi Mechanics. A Bryant center hole grinder is a machine tool used to grind a center hole, with precisely smooth sides, through the length of a material. Tsai also admitted having a role in Trans Merits’ transactions involving LED road lights and an oil pump, and using third parties to wire transfer funds to the United States.
The case was investigated by the FBI, ICE-HSI and the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement, with assistance provided by the Justice Department’s Office of International Affairs. Assistant Attorney General Carlin would like to give special thanks to the Estonian Internal Security Service and the Estonian Prosecutor’s Office who cooperated with the United States. The case is being prosecuted by Assistant U.S. Attorney Brian Hayes of the Northern District of Illinois and Trial Attorney Brandon L. Van Grack of the Justice Department’s National Security Division.
Taiwan Businessman Sentenced to 24 Months for Conspiring to Violate U.S. Laws Preventing Proliferation of Weapons of Mass DestructionRead the Press Release
CHICAGO – Assistant Attorney General for National Security John P. Carlin; U.S. Attorney Zachary T. Fardon of the Northern District of Illinois; Special Agent in Charge Robert J. Holley of the FBI’s Chicago Office; Special Agent in Charge Gary Hartwig of U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) in Chicago; and Acting Special Agent in Charge David Nardella of the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement of the Chicago Field Office announced today that a former resident of Taiwan, who the United States has linked to the supply of weapons manufacturing machinery to North Korea, was sentenced today to serve 24 months in federal prison by U.S. District Court Judge Charles R. Norgle of the Northern District of Illinois. The defendant, Hsien Tai Tsai, 69, pleaded guilty in October 2014, admitting that he conspired with others to interfere with and obstruct U.S. regulations that seek to disrupt the proliferation of weapons of mass destruction. When imposing sentence, Judge Norgle credited Tsai for the substantial assistance he provided, and would continue to provide, to the government in its investigation of weapons of mass destruction proliferators. Tsai, also known as Alex Tsai, was arrested in May 2013 in Tallinn, Estonia, and was later extradited to the United States, where he remains in federal custody.
“Aggressive enforcement of U.S. laws targeting those who supply goods, services, or other support to proliferators of weapons of mass destruction is vital to ensuring global safety,” stated Zachary T. Fardon, United States Attorney, after the sentence was announced. “As this case demonstrates, companies and individuals who seek to evade these laws will confront an international law enforcement community working cooperatively and effectively to stem these threats,” said U.S. Attorney Fardon.
“Hsien Tai Tsai violated a critical sanctions regime and undermined and interfered with U.S. efforts to disrupt North Korea's weapons of mass destruction and advanced weapons programs,” said Assistant Attorney General Carlin. “These sanctions are meant to raise the cost for WMD proliferators to do business and deter others from proliferating by denying them access to our financial and commercial systems. This prosecution makes clear that we will use all of our tools to identify and arrest WMD proliferators and to disrupt their efforts to undermine our country's security. I’d like to thank all who helped with this investigation and prosecution.”
According to court documents, Tsai was associated with at least three companies based in Taiwan – Global Interface Company Inc., Trans Merits Co. Ltd., and Trans Multi Mechanics Co. Ltd. – that purchased and then exported, and attempted to purchase and then export, from the United States and other countries machinery used to fabricate metals and other materials with a high degree of precision.
In January 2009, under Executive Order 13382, which sanctions proliferators of weapons of mass destruction and their supporters, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated Tsai, Global Interface and Trans Merits as proliferators of weapons of mass destruction, isolating them from the U.S. financial and commercial systems and prohibiting any person or company in the United States from knowingly engaging in any transaction or dealing with them. At that time, the Treasury Department said that Tsai was designated because he provided, or attempted to provide, financial, technological, or other support for, or goods or services in support of, the Korea Mining Development Trading Corporation, which the Treasury Department has stated is North Korea’s premier arms dealer and main exporter of goods and equipment related to ballistic missiles and conventional weapons. Additionally, Tsai had been involved in shipping items to North Korea that could be used to support North Korea’s advanced weapons program. After the OFAC designations, Tsai and others continued to conduct business together, but attempted to hide Tsai’s and Trans Merit’s involvement in those transactions by conducting business under different company names, including Trans Multi Mechanics. Later, in 2013, Trans Multi Mechanics was also designated by OFAC.
In pleading guilty, Tsai admitted that he was involved in multiple commercial and financial transactions to undermine the sanctions against WMD proliferations, including the purchase of a Bryant center hole grinder from a U.S. company based in suburban Chicago, and exported it to Taiwan in 2009 using the company Trans Multi Mechanics. A Bryant center hole grinder is a machine tool used to grind a center hole, with precisely smooth sides, through the length of a material. Tsai also admitted having a role in Trans Merits’ transactions involving LED road lights and an oil pump, and using third parties to wire transfer funds to the United States.
The case was investigated by the FBI, ICE-HSI and the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement, with assistance provided by the Justice Department’s Office of International Affairs. The Estonian Internal Security Service and the Estonian Prosecutor’s Office cooperated with the United States. The case was prosecuted by Assistant U.S. Attorney Brian Hayes of the Northern District of Illinois and Trial Attorney Brandon L. Van Grack of the Justice Department’s National Security Division.
Taft Man Sentenced to 10 Years in Prison for Possession with Intent to Distribute Methamphetamine and HeroinRead the Press Release
FRESNO, Calif. — David Edward Hampton Jr., 34, of Taft, was sentenced today by United States District Judge Lawrence J. O’Neil to 10 years and one month in prison for possession with intent to distribute methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, in February 2014, agents learned that Hampton had mailed a package to Rapid City, South Dakota from Taft. It was believed that the package was destined for one of Hampton’s methamphetamine distributors. The package was intercepted and found to contain approximately 444 grams of methamphetamine. On March 24, 2014, Hampton mailed another package from Taft to South Dakota, which was also seized and found to contain approximately 167 grams of methamphetamine.
On March 25, 2014, a federal search warrant was executed on Hampton’s residence and agents found approximately 459 grams of methamphetamine and 16 grams of heroin. Hampton admitted that the narcotics seized from his residence were his and that he intended to distribute them for profit.
This case was the product of an investigation by the Violent Crime Task Force which includes the Bakersfield Police Department, the Kern County Sheriff’s Office, the Kern County Probation Office, and the Federal Bureau of Investigation. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Sugar Land Man Heads to Prison for Trafficking Counterfeit Louis Vuitton, Coach and Other MerchandiseRead the Press Release
HOUSTON – Han Woon Liew, 46, of Sugar Land, has been ordered to federal prison following his conviction of conspiracy to traffic in counterfeit goods, announced United States Attorney Kenneth Magidson along with Brian M. Moskowitz, special agent in charge of Homeland Security Investigations (HSI) in Houston. Liew pleaded guilty Nov. 18, 2014.
Today, U.S. District Judge Lynn C. Hughes ordered he serve 70 months of federal imprisonment to be immediately followed by three years of supervised release. He was further ordered to pay $2.6 million in restitution.
“The partnership between HSI - Houston special agents and officers of the Houston Police Department (HPD) led to the downfall of one of the region’s largest distributors of counterfeit luxury goods” said Moskowitz. “The significant prison sentence imposed by the court highlights the serious nature of intellectual property crimes and the large restitution figure reinforces the fact that these are not victimless crimes.”
Liew admitted that from January 2012 through April 2014, he intentionally trafficked in goods, specifically counterfeit Louis Vuitton, Michael Kors, Coach and Gucci purses and wallets. Liew knowingly used counterfeit marks, which were registered trademarks, in an attempt to make the items appear legitimate.
Liew was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by Homeland Security Investigations with the assistance of HPD. Assistant U.S. Attorney (AUSA) Celia Moyer and Special AUSA Mark Evans are prosecuting the case.
Statement by Attorney General Holder on the Departure of Ronald C. Machen Jr. as the US Attorney of the District of ColumbiaRead the Press Release
Attorney General Eric Holder released the following statement on the departure of U.S. Attorney Ronald C. Machen Jr. of the District of Columbia:
“During more than five years as U.S. Attorney of the District of Columbia, Ron Machen Jr. has distinguished himself as a skilled leader, a devoted public servant and a forceful champion of justice on behalf of the American people. Throughout his remarkable tenure, Ron has applied his boundless talent and consummate judgment to protect the safety and security of all Americans in cases involving violent crime, national security threats and public corruption. As one of Ron’s predecessors as U.S. Attorney in Washington, I know firsthand the unique demands of leading the nation’s largest U.S. Attorney’s Office. But Ron has never been deterred by a difficult challenge, nor slowed in his pursuit of a safer, stronger Washington. I was fortunate to be able to hire Ron as an Assistant U.S. Attorney in the Office in 1997, and I see in him now the exceptional qualities that I saw in him then: unassailable integrity, relentless determination and a passion for law and justice. I congratulate him on the outstanding results he has achieved as U.S. Attorney of the District of Columbia. I thank him for his inspiring service. And I look forward to all that he will accomplish in the next stage of his already extraordinary career.”
Six Leaders and Members of Phantom Outlaw Motorcycle Club and Vice Lords Street Gang Convicted of Violent Racketeering-Related CrimesRead the Press Release
Today, a federal jury in Detroit convicted six leaders and members of the violent Phantom Outlaw Motorcycle Club, many of whom were also leaders and members of the Vice Lords street gang, of conspiracy to commit murder and other violent racketeering-related offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Steve Bogdalek of the Bureau of Alcohol, Tobacco, Firearms and Explosives’s (ATF) Detroit Field Division and Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Division made the announcement.
“The Phantom Motorcycle Club used violence and plotted murder in an effort to prevail in a gang war against rival motorcycle clubs in Michigan and throughout the country, and its leaders and members attempted to kill anyone who stood in their way,” said Assistant Attorney General Caldwell. “The trial convictions of the gang’s National President, National Enforcer and four other members bring to a close this dangerous organization’s violent reign. I am thankful for the courageous and diligent efforts of our prosecutors and law enforcement partners who successfully brought this criminal enterprise to justice.”
“The Detroit One partnership has focused on dismantling violent street gangs like this one because they cause intolerable harm to public safety in our neighborhoods,” said U.S. Attorney McQuade. “We will continue to target and disrupt violent gangs in hopes of restoring peace for residents in our community.”
“The amount of pain, suffering and fear that violent gangs bring to our communities is immeasurable,” said Special Agent in Charge Bogdalek. “Our goal was to disable the group by targeting its leadership, the convictions today of leaders and members of these illegal motorcycle gangs is an excellent example of success that comes from effective law enforcement cooperation.”
“As part of the Detroit One Initiative, this joint investigation effectively targeted and neutralized violent criminal offenders of the Phantom Outlaw Motorcycle Club,” said Special Agent in Charge Abbate. “Our efforts to combat violent crime continue to be waged each and every day in cooperation with our local, state, and federal law enforcement partners. Protecting our communities from offenders such as these is among our highest priorities, and we will continue this fight on behalf of the citizens we serve and protect.”
The jury convicted the defendants of the following offenses:
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Antonio Johnson, aka, “Mister Tony,” “MT,” and “Big Bro,” 40, of Detroit, the National President of the Phantoms and the “Three-Star General” over the Vice Lords street gang in Michigan, was convicted of engaging in a RICO conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, using and carrying firearms during and in relation to a crime of violence and being a felon in possession of firearms.
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Marvin Nicholson, aka, “Chosen One,” 46, of Detroit, the National Enforcer of the Phantoms and a Vice Lords member, was convicted of engaging in a RICO conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering, assault on federal officers, using and carrying firearms during and in relation to a crime of violence and being a felon in possession of firearms.
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Brian Sorrell, 28, aka, “PC,” of Detroit, a member of the Detroit Chapter of the Phantoms and the Vice Lords, was convicted of engaging in a RICO conspiracy, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, conspiracy to assault with a dangerous weapon in aid of racketeering and using and carrying firearms during and in relation to a crime of violence.
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Sherman Brown, aka, “Tank,” 43, of Detroit, the Sergeant-at-Arms of the Detroit Chapter of the Phantoms and a Vice Lords member, was convicted of conspiracy to commit murder in aid of racketeering.
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Brian Jackson, aka, “Wood,” 48, of Detroit, the Master Sergeant of the Inkster, Michigan Chapter of the Phantoms, was convicted of conspiracy to commit murder in aid of racketeering.
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Matthew Schamante, aka, “Arsenal,” 32, of Waterford, Michigan, the President of the Pontiac, Michigan Chapter of the Phantoms, was convicted of engaging in a RICO conspiracy and possessing an unregistered short-barrel shotgun.
At trial, evidence showed that the Phantom Outlaw Motorcycle Club is headquartered in northwest Detroit and has chapters throughout Michigan, Ohio, Kentucky, Illinois, New York, New Jersey, Texas, Georgia, Missouri and Tennessee, as well as a chapter of “Nomads” that travel at will. The evidence showed that the club and its members were involved in a range of criminal activity including conspiracy to commit murder, shootings, robbery, extortion and the possession and sale of stolen vehicles and motorcycles.
Evidence also showed that the leadership of the Phantoms was heavily involved in the Vice Lords street gang, including Johnson, who was both the National President of the Phantoms and the “Three-Star General” over the Vice Lords street gang in Michigan. The Vice Lords is a well-known street gang originating from Chicago. Specifically, the evidence showed that Johnson used the Vice Lords to assist the Phantoms in various criminal endeavors, including to search for and violently attack rivals of the Phantoms.
The evidence specifically demonstrated that, on Sept. 8, 2013, Johnson ordered numerous Phantoms, including Nicholson and Sorrell, to take the vests or “rags” of the Satan Sidekicks Motorcycle Club, a rival motorcycle club. During the attempted robbery, Sorrell shot the victim in the face.
Additionally, according to the evidence, Johnson blamed the Hell Lovers Outlaw Motorcycle Club for the murder of a Phantoms member in late September 2013, and ordered a three-phase murder plot against the Hell Lovers in retaliation. In the first phase, the Phantoms were to murder at least three members of the Hell Lovers in Detroit in order to lure additional Hell Lovers to Michigan for the funeral. In the second phase, the Phantoms were to murder all members of the Hell Lovers who would be at the Hell Lovers’ Detroit, Michigan clubhouse following the funeral of the three members murdered in the first phase. In the third phase, the Phantoms were to kill Hell Lovers in other cities throughout the country where the Phantoms had chapters. The mass murder plot was interrupted before it came to fruition by search warrants executed by the ATF and FBI in October 2013. At trial, evidence showed that the Phantoms were preparing for the first phase of the murder plot at the time of the search warrants, including stockpiling firearms, hiring a thief to steal a van to be used in the murders, conducting research and surveillance of their intended victims, and assigning Phantom members and Vice Lords members to stalk and murder the intended victims. Johnson, Nicholson, Sorrell, Brown and Jackson were all convicted of the murder plot.
Finally, the evidence demonstrated that, on Oct. 4, 2013, while the ATF and FBI attempted to execute a search warrant at his residence in Detroit, Nicholson shot at ATF agents four times as they attempted to enter his residence. A wall prevented the bullets from hitting the agents. The firearm that Nicholson used to shoot at the ATF agents was registered to Schamante.
Sentencing hearings will be scheduled at a later date before U.S. District Judge Paul D. Borman of the Eastern District of Michigan. Five defendants have previously pleaded guilty in the case to charges including RICO conspiracy and assault with a dangerous weapon in aid of racketeering, and await sentencing.
The arrests in this case were made as part of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit, and through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and the FBI. By working collaboratively, local, state and federal law enforcement are striving to maximize their ability to identify and arrest the persons and groups initiating the violence in Detroit. These convictions are a tangible and significant result of this joint effort.
The case is being prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section, and Assistant U.S. Attorneys Christopher Graveline and Louis Gabel of the Eastern District of Michigan.
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Serial Bank Robber Receives 25-Year Federal Prison TermRead the Press Release
PORTLAND, Ore.—Christian Olivier DeLaurentiis, 33, of Aloha, Oregon, was sentenced today by U.S. District Judge Marco Hernandez to 25 years in prison for a series of seven bank robberies committed in Western Oregon in early 2012. Judge Hernandez ordered the sentence to be served concurrently with the sentence yet to be imposed in Washington County Circuit Court for aggravated murder and abuse of a corpse, to which defendant has also pleaded guilty.
DeLaurentiis pleaded guilty in federal court on November 17, 2014, to the following bank robberies:
- January 2, 2012, at U.S. Bank in Medford, Oregon;
- February 8, 2012, at U.S. Bank in Hillsboro, Oregon;
- February 13, 2012, at U.S. Bank in Clackamas, Oregon;
- February 24, 2012, at U.S. Bank in Beaverton, Oregon;
- February 28, 2012, at Wells Fargo Bank in Troutdale, Oregon;
- March 19, 2012, at U.S. Bank in Wilsonville, Oregon;
- April 3, 2012, at Washington Federal Bank in Woodburn, Oregon.
The first five robberies involved demand notes with representations that DeLaurentiis was armed, but the tellers saw no weapons.In the Wilsonville robbery DeLaurentiis was armed with a purported bomb which turned out to be a hoax device.In the Woodburn robbery he was armed with a handgun which he waved at the tellers.
DeLaurentiis is awaiting sentencing in Washington County on his guilty pleas to the murder and dismemberment of an accomplice in the bank robberies. In May 2012 law enforcement officers found the remains of the accomplice in a freezer in DeLaurentiis’ Aloha residence.
The bank robbery investigations were conducted by the FBI in conjunction with local law enforcement agencies in each jurisdiction. The federal case was prosecuted by Assistant U. S. Attorney Stephen F. Peifer.
Self Storage Managers Plead Guilty to Investment FraudRead the Press Release
SAN DIEGO – The three owner/operators of Equity Based Services (EBS), Howard Kaplan and his two sons, Stephen and Eric Kaplan, pled guilty today to conspiring to commit wire fraud. According to the charging documents, the three principals admitted stealing over a half million dollars from investors while operating the business.
EBS (operating as American Mini Storage) was formed, in 1995, as a San Diego-based private real estate company specializing in the acquisition and management of self-storage properties. According to the plea agreements filed in court, beginning in or about 2001 and continuing to sometime in 2010, the company and its affiliates offered individuals the opportunity to invest in syndicates comprised of approximately 77 self-storage projects in a dozen different states. In doing so, they failed to disclose material information about the source of periodic return payments and the actual past performance of the self-storage projects.
Investors in the various syndicates were convinced to invest with the Kaplans, in part, by the representation that they would be entitled to a “Preferred Return,” usually in the amount of 8% per annum. This Preferred Return would generally be paid on a monthly, quarterly or other periodic basis; and, if not paid, would accrue until the property was sold. Investors were also promised that the defendants would not share in or be paid their fee (consisting of 25% of the profits) unless and until all other investors had received their 8% return. From approximately 2002 through August 2010, EBS regularly distributed the 8% periodic return to investors. Based, in part, on these regular 8% Preferred Returns, many earlier investors invested in one or more subsequent projects. These regular payments also attracted new investors.
Unknown to investors, some of the regular 8% Preferred Returns were made possible only because defendant Howard Kaplan was diverting funds from better-performing properties or using fees paid to EBS generated by new project syndications. As admitted in court proceedings, defendant Howard Kaplan failed to disclose to investors that their investment project was not generating enough operational profit to justify the 8% return. Similarly, he concealed from investors that certain individual syndications were, in fact, not generating sufficient funds to even cover their operational costs and debt service. In addition, Howard Kaplan also failed to disclose to investors that he was commingling their funds and using them to pay other projects’ debt service.
In entering his plea, Howard Kaplan admitted he breached his fiduciary responsibility and duty to investors by pre-funding the return payments through a process of raising excess funds for individual projects. Also, he induced investors to invest additional funds in projects without informing these investors as to the true financial condition of the properties, and created new and sometimes undisclosed fees called “capital assignment considerations” and “equity consulting fees”.
Defendants Stephen and Eric Kaplan admitted they were aware of the above misconduct by their father no later than January 2010. Despite this knowledge, they continued to seek and accept investments while failing to disclose the true financial status of the properties and misuse of funds to both new and old investors.
This case is being co-prosecuted with the California Attorney General’s Office, with assistance from the California Department of Business Oversight.
DEFENDANTS Case Number: Howard Kaplan Age: 71 El Cajon, California Stephen Kaplan Age: 51 La Jolla, California Eric Kaplan Age: 43 San Diego, California CHARGESTitle 18, U.S.C., Sec. 371 – Conspiracy to commit wire fraud. Maximum penalties under the statute include 5 years in prison, $250,000 fine, three years of supervised release.
INVESTIGATING AGENCIESCalifornia Department of Business Oversight
Federal Bureau of InvestigationReno, Nevada Man Sentenced for Aggravated Identity Theft for Fraudulent Credit Card Use in BoiseRead the Press Release
BOISE – Rapphel Johnson, 28, of Reno, Nevada, was sentenced today to 24 months in prison for aggravated identity theft, U.S. Attorney Wendy J. Olson announced. U.S. District Chief Judge B. Lynn Winmill also ordered Johnson to pay a $5,000 fine, and serve one year of supervised release following the prison term.
Johnson was indicted in September 2014, for access device fraud (credit card fraud) and aggravated identity theft. According to the plea agreement, Johnson admitted that on September 1, 2014, he and a co-defendant knowingly used counterfeit credit cards containing the account numbers of real people to make a number of fraudulent purchases in Boise at stores including Rite Aid, Subway, T-Mobile, Finish Line, and Macy’s. In particular, Johnson admitted using a counterfeit credit card, with another person’s account number, to purchase a Microsoft Surface Pro 3 at the Boise Towne Square Mall. Additionally, Johnson admitted that when he was contacted by police at a motel room rented with a counterfeit credit card, he threw several counterfeit credit cards out the motel room window.
Johnson’s co-defendant, Elizabeth Carter, is scheduled for sentencing on May 12, 2015.
The case was investigated by the United States Secret Service and the Boise Police Department.
Pikesville Business Owner Pleads Guilty to Conspiracy to Distribute over $6.6 Million in Contraband CigarettesRead the Press Release
Baltimore, Maryland – Ilgar Rakhamimov, age 41, of Pikesville, Maryland, pleaded guilty today to conspiracy to receive, possess, sell and distribute over $6.6 million in contraband cigarettes, that is, cigarettes on which the applicable state taxes have not been paid.
The guilty plea 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; Chief James W. Johnson of the Baltimore County Police Department; Special Agent in Charge Antoinette V. Henry of the U.S. Food & Drug Administration, Office of Criminal Investigations; and Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services.
According to their guilty pleas, Elmar Rakhamimov (no relation to Ilgar Rakhamimov) was the leader and organizer of the scheme, and he coordinated with Ilgar Rakhamimov and another conspirator to collect the money to purchase the contraband cigarettes, and to arrange for the storage and transportation of the contraband cigarettes to Brooklyn, New York. Other members of the conspiracy included Zarakh Yelizarov, Salim Yusufov, Adam Azerman, Shamil Novakhov, and Ruslan Ykiew. Elmar Rakhamimov, Ilgar Rakhamimov, and another conspirator purchased contraband cigarettes on 18 occasions between December of 2011 and November of 2013 from an undercover FBI agent operating in the Baltimore County, Maryland area.
The first transaction occurred at Chesapeake Monuments, a business owned by Ilgar Rakhamimov, on December 11, 2011, when Elmar Rakhamimov and Ilgar Rakhamimov purchased 20 master cases of contraband cigarettes in exchange for $18,000 in cash. After the first transaction, the contraband cigarettes were delivered to and stored at the home of Elmar Rakhamimov in Owings Mills. Prior to each transaction, Elmar Rakhamimov, Ilgar Rakhamimov, and a third co-conspirator discussed the transaction on the phone, and frequently met at Elmar Rakhamimov’s home to discuss the purchase and compile and count the money for the transaction.
The cigarettes were sold and distributed in quantities of 10,000 cigarettes or more, and bore no evidence of the payment of applicable state sales taxes. At the time of the indictment the cigarette tax in Maryland was $2.00 per package of cigarettes ($20 per carton of cigarettes) and the cigarette tax in New York was $4.35 per package of cigarettes ($43.50 per carton of cigarettes). The total tax evaded over the course of the conspiracy was more than $2.5 million.
Following many of the deliveries, the conspirators met at Elmar Rakhamimov’s residence to discuss moving the cigarettes to Brooklyn, New York where the cigarettes were sold at a profit to individuals in New York, who further distributed the contraband cigarettes. The cigarettes were often transported from Maryland to New York by Adam Azerman, who delivered them to Shamil Novakhov, a relative of Ilgar Rakhamimov. Ilgar Rakhamimov brought Novakhov into the conspiracy, and was the primary contact with Novakov throughout the conspiracy. Novakhov’s nephew, Ruslan Ykiew, also would travel from New York to Maryland to obtain contraband cigarettes and transport them to his uncle in New York. Ykiew initially stored the cigarettes in a restaurant he owned. At Novakhov’s request, in 2012 Ykiew rented a warehouse for the storage of the contraband cigarettes. Ilgar Rakhamimov and his co-conspirators paid $30 for each carton of contraband cigarettes, and sold them to buyers in New York for approximately $41 - $45 per carton.
Yelizarov and Elmar Rakhamimov laundered the proceeds of the contraband cigarette sales through an international money laundering operation that wired funds from banks located in Latvia, Cyprus, Estonia, and New York, to a bank in Maryland, disguising the money as legitimate business payments for medical equipment or supplies. From December 27, 2012 through September 5, 2013, Yelizarov and Rakhamimov wired a total of $649,500 through 12 transactions.
Ilgar Rakhamimov faces a maximum sentence of five years in prison for conspiracy to traffic in contraband cigarettes. As part of his plea agreement, Ilgar Rakhamimov is also required to pay a $50,000 fine. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for Ilgar Rakhamimov for June 11, 2015, at 1:00 p.m.
Elmar Rakhamimov, a/k/a “Eric Rakhamimov,” age 42, of Owings Mills, Maryland, and his brother, Salim Yusufov, age 43, of Reisterstown, Maryland; Zarakh Yelizarov, age 52, and Adam Azerman, age 59, both of Pikesville; and Shamil Novakhov, age 58, and Ruslan Ykiew, age 39, both of Brooklyn, New York, previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department, U.S. Food & Drug Administration, Office of Criminal Investigations and Office of Inspector General of the Department of Health and Human Services – Office of Investigations for their work in the investigation and the Medicaid Fraud Control Unit of the Maryland Attorney General’s Office for its assistance in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Paul E. Budlow and John W. Sippel, Jr., who are prosecuting the case.
Philadelphia Woman Charged with Concealing Child's Death to Continue Receiving BenefitsRead the Press Release
PHILADELPHIA - Nakia Calicat, 38, of Philadelphia, PA, was charged by indictment, unsealed today, with concealing the death of her child in order to continue receiving Supplemental Security Income payments for her deceased daughter, announced United States Attorney Zane David Memeger. Calicat is charged with ten counts of wire fraud, one count of theft of government money, two counts of false statements, and one count of Social Security representative payee fraud.
Calicat gave birth to a child in December 2006 and filed for SSI benefits in March 2007. The child died in July of 2010 but the Social Security Administration (“SSA”) did not learn of the death until August of 2013. SSA sent notice to Calicat that the benefits for her child would be terminated. In October 2013, the indictment alleges that Calicat told an SSA employee that her child was still alive. In August 2014, Calicat spoke to a Special Agent with the Social Security Administration Office of Inspector General and, again, allegedly lied about her daughter’s death. According to the indictment, between July 2010 and August 2014, Calicat illegally received Social Security benefits on behalf of her decease child defrauding the government of approximately $26,224.
If convicted, the defendant faces a maximum possible statutory sentence of up to 225 years in prison, a three‑year period of supervised release, a $3.5 million fine, restitution of $26,224 and a $1,400 special assessment.
The case was investigated by the Social Security Administration Office of Inspector General and is being prosecuted by Special Assistant United States Attorney Amanda R. Reinitz.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
North Carolina Man Indicted for Filing False Claims for Tax Refunds and Identity TheftRead the Press Release
A federal grand jury in the Eastern District of North Carolina has returned an indictment against a Raleigh, North Carolina, resident for one count of conspiracy to defraud the United States, 17 counts of presenting false claims to the Internal Revenue Service (IRS), three counts of wire fraud and two counts of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
Christian Rhodes, of Raleigh, was arrested earlier today on the indictment, which alleges that Rhodes and others solicited individuals in order to prepare their federal tax returns that used false information to claim tax refunds that the individuals were not entitled to receive. The tax returns that Rhodes prepared and filed contained false wages, tax withholdings and deductions. Rhodes directed the IRS to deposit refunds electronically into bank accounts in his own name and in the names of third-party taxpayers. Rhodes also used stolen identities in order to file false claims for tax refunds.
If convicted, Rhodes faces a statutory maximum sentence of 10 years in prison for the conspiracy count, five years in prison for each false claims count, 20 years in prison for each wire fraud count, and a maximum fine of $250,000 for each count. Rhodes also faces a statutory mandatory minimum sentence of two years in prison for the aggravated identity theft count.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Walker commended the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Susan Menzer of the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorneys Lauren Castaldi and Rebecca Perlmutter of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
An indictment is merely a formal charge by the grand jury. The defendant is presumed innocent unless and until proven guilty in a U.S. District Court.
North Carolina Man Indicted for Filing False Claims for Tax Refunds and Identity TheftRead the Press Release
WASHINGTON – A federal grand jury in the Eastern District of North Carolina has returned an indictment against a Raleigh, North Carolina, resident for one count of conspiracy to defraud the United States, 17 counts of presenting false claims to the Internal Revenue Service (IRS), three counts of wire fraud and two counts of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
Christian Rhodes, of Raleigh, was arrested earlier today on the indictment, which alleges that Rhodes and others solicited individuals in order to prepare their federal tax returns that used false information to claim tax refunds that the individuals were not entitled to receive. The tax returns that Rhodes prepared and filed contained false wages, tax withholdings and deductions. Rhodes directed the IRS to deposit refunds electronically into bank accounts in his own name and in the names of third-party taxpayers. Rhodes also used stolen identities in order to file false claims for tax refunds.
If convicted, Rhodes faces a statutory maximum sentence of 10 years in prison for the conspiracy count, five years in prison for each false claims count, 20 years in prison for each wire fraud count, and a maximum fine of $250,000 for each count. Rhodes also faces a statutory mandatory minimum sentence of two years in prison for the aggravated identity theft count.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Walker commended the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Susan Menzer of the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorneys Lauren Castaldi and Rebecca Perlmutter of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
An indictment is merely a formal charge by the grand jury. The defendant is presumed innocent unless and until proven guilty in a U.S. District Court.
New Jersey Man Sentenced for Taking Minor Across State Lines for SexRead the Press Release
Louay Shaman, 32, of Cliffside Heights, New Jersey, was sentenced on March 13, 2015, to eight years in prison for traveling with purpose of having illicit sexual conduct with a minor. Shaman pleaded guilty to the charge on January 6, 2014.
Shaman met the then-14-year old victim on an Internet dating site called “Are You Interested.” He conversed with her via the Internet two days before driving to her home near Allentown, Pennsylvania, meeting her for the first time, driving her back to New Jersey, and having sex with her in the car.
In addition to the prison term, U.S. District Court Judge James Knoll Gardner ordered 10 years of supervised release, forfeiture of the defendant’s BMW, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation and a Pennsylvania local police department. It was prosecuted by Assistant United States Attorney Albert S. Glenn.
New Jersey Man Pleads Guilty to Role in Anabolic Steroid Distribution RingRead the Press Release
MONROE La. – United States Attorney Stephanie A. Finley announced today that a New Jersey man pleaded guilty for his role in importing and selling anabolic steroids.
Justin R. Kull, 28, of Turnersville, N.J., entered a conditional guilty plea for one count of conspiracy to distribute Schedule III controlled substances before U.S. Magistrate Judge Karen L. Hayes. The plea will become final when accepted by U.S. District Judge Robert G. James. According to evidence presented at the guilty plea, Kull in addition to Gary Lynn Ward, 47; and David Ray Dean, 47, both of Monroe, conspired to possess with intent to distribute anabolic steroids starting sometime in 2013 until August 27, 2013. Kull was a nurse from New Jersey who supplied quantities of steroids to Ward and Dean. Ward and Dean would also import the drugs from overseas and other domestic sources. They would then process the drugs in a makeshift lab in the Monroe area and distribute them.
Kull faces up to 20 years in prison, at least four years supervised release, and a $1 million fine. A sentencing date of June 15, 2015 was set. Dean pleaded guilty February 18, 2015, and Ward pleaded guilty March 6, 2015 to one count of conspiracy to distribute Schedule III controlled substances. Dean is to be sentenced July 6, 2015, and Ward is to be sentenced on June 15, 2015.
United States Customs and Border Patrol-Homeland Security Investigations, the U.S. Postal Inspection Service and Louisiana State Police participated in the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Monroe County Woman Pleads Guilty to Participating in Drug ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 21-year-old Tobyhanna Township woman pleaded guilty today before U.S. Magistrate Judge Karoline Mehalchick in Scranton, to participating in a conspiracy to distribute heroin and cocaine in Monroe and Wayne Counties between 2011 and 2014.
According to United States Attorney Peter Smith, the defendant, Tiffanyann Cruz, admitted to distributing heroin on two occasions in November 2013, in drug transactions that were arranged by other members of her family. Three other Cruz family members - Brandon Cruz, Rubie Cruz, and Carlos Cruz - are charged in the case and are awaiting trial
Cruz was indicted by a federal grand jury in August 2014, as a result of an investigation by the Drug Enforcement Administration, the Pennsylvania State Police, and the Wayne County District Attorney’s Office. U.S. District Court Judge Richard P. Conaboy will schedule sentencing at a later date.Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #Monroe County Man Sentenced to More Than 15 Years in Prison for Role in Heroin Conspiracy and Supervised Release ViolationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 41-year-old Effort man was sentenced today to a total of 181 months in prison for his role in a heroin trafficking conspiracy and for violating conditions of his supervised release.
According to United States Attorney Peter Smith, the defendant, Kerion Johnson, previously pleaded guilty to committing the crime between November 2013 and April 22, 2014 in Monroe County. Johnson also admitted to committing the crime while he was on supervised release from an earlier federal drug conviction.
In today’s first proceeding, Senior U.S. District Court Judge Richard P. Conaboy imposed a 151-month prison sentence on Johnson for the conspiracy offense. A short time later, Senior U.S. District Court Judge James M. Munley imposed a 30-month sentence on Johnson for violating the conditions of supervised release, and ordered the 30-month sentence to run consecutive to the 151-month sentence.
In regard to the more recent offense, Johnson was charged in a Criminal Information filed by the United States Attorney on June 4, 2014, following an investigation by special agents of the Federal Bureau of Investigation and the Pennsylvania State Police.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Miami Man Sentenced to 170 Months in Prison for Prescription Drug Diversion ConspiracyRead the Press Release
Rashad Woodside, 38, of Miami, Florida, was sentenced on March 12, 2015, to 170 months in prison by U.S. District Court Chief Judge Kevin H. Sharp, for conspiring to possess and distribute a variety of diverted prescription drugs, including Oxycodone and Oxymorphone, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Woodside pleaded guilty to the charges in July 2014.
During testimony at the sentencing hearing, it was revealed that over a period of several years, Woodside sent tens of thousands of diverted prescription pills from Miami, Florida to two of his co-defendants who resided in the Middle District of Tennessee. Judge Sharp described Woodside as an “opportunist” and found that he held a leadership role in the conspiracy.
This matter was investigated by the Drug Enforcement Administration, the Lebanon Police Department, and the United States Postal Inspection Service. The United States was represented by Assistant U.S. Attorney Brent A. Hannafan.
Marshall County man convicted of cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Thaddeus Emrys Richardson, 29, of McMechen, West Virginia, was convicted in federal court today for crack cocaine trafficking in Ohio County, West Virginia in August 2014, United States Attorney William J. Ihlenfeld, II, announced.
Richardson pled guilty today to one count of “Possession with Intent to Distribute Cocaine Base.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David Perri is prosecuting the case on behalf of the government. The Wheeling Police Department is leading the investigation.
Senior U.S. District Judge Frederick P. Stamp presided.
Many Resident Sentenced to More Than 6 Years in Prison for Distribution of MethamphetamineRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a man from Many was sentenced to 78 months in prison for distributing methamphetamine.
Marcus Johnson, 38, of Many, La., was sentenced by U.S. District Judge S. Maurice Hicks Jr. on one count of distribution of methamphetamine. He was also sentenced to three years of supervised release. According to evidence presented at the December 10, 2014, guilty plea, law enforcement agents conducted controlled buys of methamphetamine from Johnson on November 4, 7, and 12 of 2013. Johnson would conduct methamphetamine sales at various retail stores in Many.
The DEA and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown prosecuted the case.
Manhattan U.S. Attorney Announces Charges Against Bronx Man for Aiming A Laser Beam at AircraftRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), and Michael A. Fedorko, Superintendent of Police and Director of Public Safety for the Port Authority of New York and New Jersey (“PAPD”), announced that ELEHECER BALAGUER was arrested today for aiming the beam of a laser pointer at aircraft in the vicinity of LaGuardia Airport. BALAGUER surrendered to the FBI this morning, and appeared before U.S. Magistrate Judge Debra C. Freeman in Manhattan federal court earlier today.
U.S. Attorney Preet Bharara said: “As charged, Elehecer Balaguer’s actions were simple but potentially disastrous: pointing a powerful laser at airplanes carrying hundreds of people and then at a police helicopter. In fact these actions had dire consequences that could have been worse yet, including impairing and damaging the vision of pilots with the possibility of creating real danger to the aircraft. I commend the NYPD Aviation Unit pilots who, at great risk to themselves, located the source of these incidents.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The behavior displayed by Mr. Balaguer was more than careless. Pointing a laser at an aircraft during its operation creates a dangerous situation for pilots, passengers, and innocent bystanders on the ground. The FBI will vigorously pursue these criminal acts. For the safety of all who fly, we remind the public to alert law enforcement of any known incidents of laser strikes.”
Police Commissioner William J. Bratton said: “Pointing a laser pointer at the operator of an aircraft is an irresponsible act that poses a real and immediate danger. It is important that the public understands that the intentional misuse of this device has the potential to create a devastating outcome and is against the law.”
According to the Complaint filed in Manhattan federal court today:
On March 9, 2015, three pilots of commercial airplanes arriving at or departing from LaGuardia Airport in Queens were stuck in the eyes with a bright green beam, causing the pilots to lose focus temporarily and, in two instances, briefly blinding the pilots. In response, an Air Traffic Controller at LaGuardia Airport temporarily changed the runway directions used for all airplanes arriving at and departing from LaGuardia Airport that evening, so that airplanes would avoid the laser beam.
Each of the pilots who was struck with the green beam noticed that the beam appeared to originate from the Bronx, New York. Later in the evening on March 9, 2015, officers from the NYPD Aviation Unit responded to the pilots’ complaints by flying in a helicopter (the “NYPD Helicopter”) in the vicinity of the location where the airplanes had been struck with a beam. While the NYPD Helicopter was in that area, a green beam was directed into the cockpit of the NYPD Helicopter, causing both of the pilots also to lose sight temporarily. The pilots on board the NYPD Helicopter observed that the laser beam appeared to originate from a particular second floor apartment of a building in the Bronx (the “Apartment”).
NYPD officers responded to the Apartment later in the night of March 9, 2015. BALAGUER and others were present in the Apartment. The officers recovered a laser pointer (the “Laser Pointer”) from the top of a refrigerator near the window from where the green beam that struck the NYPD Helicopter appeared to have originated. Written on the Laser Pointer is the warning: “DANGER – LASER RADIATION – AVOID DIRECT EYE EXPOSURE.” When questioned the night of March 9, 2015, BALAGUER admitted that he owned the Laser Pointer, but denied knowing who pointed the Laser Pointer at passing airplanes.
On March 13, 2015, BALAGUER admitted to law enforcement that he shined the beam of the Laser Pointer at an airplane on March 9, 2015. BALAGUER further admitted to lying to law enforcement when he was interviewed by NYPD officers on March 9, 2015.
BALAGUER, 54, is charged with one count of aiming a laser pointer at an aircraft, which carries a maximum penalty of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
U.S. Attorney Bharara praised the investigative work of the New York FBI’s Joint Terrorism Task Force – which principally consists of agents from the FBI and detectives from the NYPD, and comprises investigators from numerous federal, state, and local law enforcement agencies. Mr. Bharara also thanked the NYPD’s Aviation Unit and the Port Authority of New York and New Jersey.
This case is being handled by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Ian McGinley is in charge of the prosecution.
The charge in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Elehecer Balaguer Complaint
Man Charged in Multi-Year Fraud SchemeRead the Press Release
HOUSTON – A man believed to be from the Houston area has been arrested on allegations he engaged in an eight-year bank fraud, identity theft and money laundering scheme, announced U.S. Attorney Kenneth Magidson.
Andre Lamont Chenier, 41, was arrested late Friday, March 13, 2015, and will make his initial appearance before U.S. Magistrate Judge George Hanks at 10:00 a.m. today.
The indictment alleges Chenier engaged in a bank fraud scheme spanning from July 2004 to August 2012, during which time he obtained fraudulent commercial loans from local banks using falsified documents and someone else’s Social Security number and laundering the proceeds.
In 2004, Chenierallegedly applied for a $100,000 revolving line of credit loan from a local bank for a company called Teksync Inc. The indictment alleges he requested to have the $100,000 loan increased to $2 million in 2006. As part of his increase request, Chenier allegedly submitted a Personal Financial Statement—Business Banking that contained false and fraudulent information about stock ownership and an Ameritrade account statement that listed fictitious stock ownership and account balances. The indictment further alleges that as part of this statement, Chenier also submitted a falsified balance sheet and bank statement for Teksync that listed a bank balance of $9,309,796.16 when, in fact, the true balance was only $100.
According to the indictment, in 2011, Chenier began the process of applying for a $1,250,000 revolving line of credit loan from another bank for a company called Scott & Burgess. Similar to the other loan, Chenier allegedly submitted a Personal Financial Statement and accounts receivables report that listed fictitious assets as well as U.S. Individual Income Tax Returns that contained the Social Security number of someone else.
If convicted, Chenier faces federal prison time of up to 30 years on the bank fraud charges, 10 years on the money laundering charges as well as a mandatory two years for aggravated which must be served consecutively to any other sentence imposed.
The charges are the result of an investigation conducted by the FBI, Federal Deposit Insurance Corporation – Office of Inspector General and Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Belinda Beek is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
Los Angeles-Area Pharmacist Pleads Guilty to Medicare Part D Fraud SchemeRead the Press Release
A pharmacist who owned and operated a pharmacy in Los Angeles pleaded guilty today in connection with a Medicare fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Field Office.
Rouzbeh Javaherian, 34, of Beverly Grove, California, pleaded guilty to health care fraud in connection with a scheme to defraud the Medicare Part D program through a pharmacy called Emoonah Inc., doing business as Westaid Pharmacy and Medical Supply (Westaid). According to admissions in the plea agreement, Javaherian was a licensed pharmacist and owner of Westaid, which was located in Los Angeles. From January 2008 to November 2014, Javaherian devised and executed a scheme to defraud the Medicare Part D program by paying illegal cash kickbacks to Medicare beneficiaries to induce them to submit their prescriptions to Westaid. Javaherian then filled some of those prescriptions, but also submitted false and fraudulent claims to Medicare Part D plan sponsors for prescriptions that he did not actually fill.
From January 2008 to November 2014, Javaherian received approximately $644,060 in overpayments from Medicare as the result of the fraud scheme.
Sentencing is scheduled for June 1, 2015, before U.S. District Judge Stephen V. Wilson of the Central District of California.
The case was investigated by the FBI, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case is being prosecuted by Trial Attorney Alexander F. Porter of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Lewis County man convicted of painkiller traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Alex Paul Jordan, 26, of Jane Lew, West Virginia, was convicted in federal court today of oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Jordan admitted to his involvement in oxycodone trafficking in Lewis County, West Virginia in January 2014. He pled guilty today to one count of “Distribution of Oxycodone – Aiding and Abetting.” He faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government. The Lewis County Sheriff’s Office is leading the investigation.
U.S. Magistrate Judge John S. Kaull presided.
Kalamazoo Woman Indicted on Multiple Counts of Tax FraudRead the Press Release
“#1 Tax Lady” charged with filing multiple phony tax returns
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles announced today that Fontrice Lenee Charles, 39, of Kalamazoo, Michigan, appeared in federal district court today to be arraigned on 27 felony charges. The charges stem from Charles’s Kalamazoo business, “#1 Tax Lady.”
On March 6, 2015, a federal grand jury charged Charles with 27 federal felony offenses. Counts 1-25 allege that Charles filed false tax returns for others, and supplied false information designed to ensure hefty refunds, between January 17, 2011 and February 4, 2014. Further information disclosed on court records indicate that Charles prepared 482 such tax returns during this period, resulting in improper tax refunds of approximately $2,000,000. Each of these counts carries a maximum possible sentence of five years in prison and other penalties.
Counts 26 and 27 of the indictment allege that Charles’s own tax returns for 2010 and 2011 were false as well. The indictment alleges that these returns were false because they did not report the income that Charles earned as a result of her fraudulent tax preparation activity, and because she claimed a deceased person as a dependent. Filing false tax returns is a violation of federal law and each offense carries a maximum penalty of three years in prison.
Charles appeared in federal court today before Magistrate Judge Ellen Carmody. Charles requested court-appointed counsel, and the judge released Charles on bond. An arraignment and initial pretrial conference will be scheduled later this week. Chief U.S. District Judge Paul Maloney will preside over the resolution of the case. Prosecution of the matter has been assigned to Timothy VerHey, Assistant U.S. Attorney. The matter was investigated by the Grand Rapids office of the Internal Revenue Service Criminal Investigation.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
END
KC Man Pleads Guilty to $1.2 Million Arson, Insurance Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was injured while setting a house on fire and forced to shed his burning pants in the street, pleaded guilty in federal court today to his role in a nearly $1.2 million arson and insurance fraud conspiracy.
John S. Wayne, 31, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to one count of conspiracy to commit arson, use of a fire to commit a federal crime, mail fraud and wire fraud. In addition to the conspiracy, Wayne pleaded guilty to one count of arson.
Wayne is among six co-conspirators – all of whom have pleaded guilty – who bought, over-insured and burned five houses in Kansas City. The total actual loss to insurance companies in the scheme was $434,938, while the total intended loss was $1,196,840.
On April 23, 2011, the house at 4901 Agnes partially burned, and the fire was determined to be arson. Two days later, on April 25, 2011, Wayne and co-defendant Joshua Stamps, 28, of Independence, Mo., burned the house in another arson fire. This time the house was a total loss.
A witness saw Wayne running from the house with his pants on fire. Wayne took his pants off and left them in the street. Kansas City police detectives recovered burned sweatpants and boots from the street; DNA recovered from the pants confirmed that Wayne wore the burned pants discarded in the street. A chemical analysis established that the pants and boots had evaporated gasoline on them.
Wayne was admitted to Research Medical Center with severe burns to his legs later that day. Wayne told investigators that Stamps, who was driving, refused to take him to a hospital and instead took him home and bought him some burn cream. Wayne said the burn cream wasn’t going to work so he went to the hospital.
On June 22, 2011, as a result of false and fraudulent claims, American Family Insurance issued a check for $29,881 to Kansas City Missouri Treasurer. (This is standard procedure in event of a total loss. When the insured/owner can prove the property has been cleared of debris, the check is then refunded to the owner.) Also on June 22, 2011, American Family Insurance issued a check for $88,645 to Area Contractors, which was owned by Stamps’s mother and co-defendant, Randy Stamps, 57, of Kansas City, Mo. Area Contractors issued a purported invoice and contract for $53,000, supposedly for work done at the property. However, Area Contractors did no work.
Joshua Stamps was the leader of the conspiracy. Beginning in July 2007, Joshua Stamps bought houses costing from $6,500 to $15,000. He used co-conspirators as straw owners for three of the houses, while other co-conspirators helped commit the arsons and/or acted as tenants so the properties could be classified as rentals.
In the conspiracy that lasted until 2013, Joshua Stamps and his co-conspirators insured the houses for much more than the purchase price, in amounts from $88,000 to $307,000. Joshua Stamps and his co-conspirators made false statements on the insurance applications, such as that the houses were rented and/or occupied, that there were valuable contents in the houses, and that the houses had been renovated.
Joshua Stamps and his co-conspirators set fire to the houses. The listed owner of the house that burned would then claim a total loss with the applicable insurance company and would falsely claim they had no knowledge of, or involvement in, the fire.
Under the terms of today’s plea agreement, Wayne must pay a money judgment of $434,938, which represents the proceeds of the conspiracy. Wayne is subject to a mandatory minimum sentence of five years in federal prison without parole, up to 25 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department.
Justice Department and New York Attorney General Secure Settlement with New York City Tour Bus Joint VentureRead the Press Release
The Department of Justice and New York State Attorney General today announced that they have reached a settlement with Coach USA Inc., City Sights LLC and their joint venture, Twin America LLC, to remedy competitive concerns in the New York City hop-on, hop-off bus tour market. The settlement requires the defendants to relinquish all of City Sights’ Manhattan bus stop authorizations and disgorge $7.5 million in ill-gotten profits that the defendants obtained by operating Twin America in violation of the antitrust laws.
The settlement resolves a lawsuit filed on Dec. 11, 2012, in the U.S. District Court of the Southern District of New York alleging that the March 2009 formation of Twin America violated the antitrust laws and resulted in higher prices for hop-on, hop-off bus tours in New York City. Trial had been set for Feb. 23, 2015 before the parties adjourned the trial date to facilitate settlement discussions. Today’s settlement, if approved by the court, would resolve the claims alleged in the complaint filed in this case.
“The formation of Twin America gave Coach and City Sights an unlawful monopoly over the New York City hop-on, hop-off bus tour market and allowed them to immediately increase prices to consumers,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division. “As a result of the joint efforts of the Antitrust Division and the New York Attorney General, Coach and City Sights will forfeit key bus stop authorizations throughout Manhattan to restore competition and surrender illegal profits they obtained from violating the antitrust laws.”
“By eliminating the competition between them, the largest operators of New York City’s iconic double-decker tour buses were able to raise prices and deprive city visitors of the benefits of a free and fair market,” said New York Attorney General Eric T. Schneiderman. “This settlement allows competition to thrive once again, and ensures that these companies did not profit from operating an unlawful and anticompetitive joint venture. I thank the Justice Department’s Antitrust Division for partnering with my office to achieve this resolution for consumers in New York.”
As alleged in the complaint, prior to the formation of Twin America, Coach, the long-standing market leader through its “Gray Line New York” brand, and City Sights, a firm that launched the “CitySights NY” brand in 2005, accounted for approximately 99 percent of the hop-on, hop-off bus tour market in New York City. Between 2005 and early 2009, the two companies engaged in vigorous head-to-head competition on price and product offerings that directly benefited consumers.
The formation of Twin America ended competition between Coach and City Sights and enabled them to increase hop-on, hop-off bus tour prices by approximately 10 percent. According to the complaint, Coach and its corporate parent, Stagecoach Group PLC, had long assumed that combining with Coach’s only meaningful competitor would allow the merged firm to raise prices and communicated this assumption to City Sights during joint venture negotiations. In early 2009, over a period of approximately two months, Coach and City Sights implemented the price increases and executed the joint venture. The joint venture continues to operate both the Gray Line New York and CitySights NY brands today.
For more than three years following Twin America’s formation, there was no new entry or expansion in the market, and Coach and City Sights sustained the 2009 price increases. Although some firms have entered since 2012, they have been unable to obtain bus stop authorizations from the New York City Department of Transportation (NYCDOT) at or sufficiently close to top attractions and neighborhoods to meaningfully compete with Twin America. NYCDOT is the city agency in charge of managing bus stop authorizations, which are required for hop-on, hop-off operators to load and unload passengers. Both Coach and City Sights hold large portfolios of bus stop authorizations covering virtually all of Manhattan’s key attractions that the firms received from the NYCDOT years ago before many locations were at capacity. The formation of Twin America gave them a dominant share of the competitively-meaningful bus stop authorizations in Manhattan.
The proposed settlement requires Twin America to divest all of City Sights’ Manhattan bus stop authorizations by relinquishing them to the NYCDOT. The relinquished bus stop authorizations include highly-coveted locations such as the areas surrounding Times Square, the Empire State Building and Battery Park, where rival firms have been chronically unable to obtain competitive bus stop authorizations. By increasing the NYCDOT’s inventory of bus stops and freeing up capacity at approximately 50 locations throughout Manhattan, the settlement will significantly ease the most intractable barrier to rivals being able to meaningfully compete with Twin America. The defendants will continue to hold Gray Line New York’s bus stop authorizations for their own hop-on, hop-off service.
The settlement also requires the defendants to disgorge $7.5 million in profits they obtained from the operation of their illegal joint venture. This amount is in addition to $19 million that the defendants had already agreed to pay to a class of consumers to settle related private litigation brought after the filing of the government’s complaint. The United States and the New York Attorney General determined that the defendants earned profits in excess of $19 million from their unlawful monopoly and that disgorgement was particularly appropriate on the facts of this case – a consummated merger involving an anticompetitive price increase and deliberate attempts to evade antitrust enforcement. The payment of $7.5 million in disgorgement will deprive the defendants of ill-gotten profits they retained even after the class settlement and deter future antitrust law violations.
In a separate but related filing, Coach USA has further agreed to reimburse the United States $250,000 in attorney’s fees and costs to resolve claims that the Coach defendants spoliated evidence and failed to meet their document preservation obligations.
The settlement of the lawsuit also requires Coach and Twin America to establish antitrust training programs and that the defendants provide the government with advance notice of any future acquisition in the New York City hop-on hop-off bus tour market that is not otherwise reportable under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the HSR Act).
Coach USA is a Delaware corporation with its principal place of business in Paramus, New Jersey. Coach offers scheduled bus routes, motorcoach tours, charters and city sightseeing tours in the United States and Canada. Coach is a wholly-owned subsidiary of Stagecoach Group PLC, a leading international public transport company based in the United Kingdom.
City Sights is a New York limited liability company with its principal place of business in New York City. City Sights is part of the New York Airport Service group of companies, one of New York City’s largest operators of ground transportation, tour and sightseeing services for leisure and corporate markets.
Twin America is a Delaware limited liability company with its principal place of business in New York City.
As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to William H. Stallings, Chief, Transportation, Energy and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court of the Southern District of New York may enter the proposed final judgment upon finding that it is in the public interest.
BACKGROUND
The transaction forming Twin America was not required to be reported under the HSR Act, and the department did not learn about the joint venture until after its consummation. The State of New York was similarly unaware of Twin America at the time of its formation, but began to investigate shortly thereafter and issued subpoenas in the summer of 2009.
After receiving the subpoenas, the defendants delayed the State of New York’s antitrust investigation by belatedly filing the transaction with the federal Surface Transportation Board (STB) and asserting that the STB had exclusive jurisdiction. The STB rejected the joint venture in early 2011 as not in the “public interest” and affirmed its ruling in early 2012, directing the defendants to either dissolve Twin America or terminate minimal interstate operations that provided the basis for STB jurisdiction. The defendants chose the latter, which removed the matter from STB jurisdiction but did nothing to address the joint venture’s anticompetitive effects in New York City. The department and New York State Attorney General’s lawsuit followed in December 2012.
Justice Department Issues Statement on the Abandonment of the National Cinemedia/Screenvision MergerRead the Press Release
Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division issued the following statement today after National CineMedia Inc. (NCM) abandoned its proposed acquisition of Screenvision LLC, which the department had filed suit to block in November:
“This result is a victory for advertisers, movie theaters and consumers. Had this merger-to-monopoly gone forward, it would have combined the only two significant cinema advertising networks in the United States, creating an unlawful monopoly in the markets for cinema advertising and preshow services. The Antitrust Division’s lawsuit, which sought to prevent the companies from merging and preserve their existing head-to-head competition, was filed late last year in the U.S. District Court of the Southern District of New York.
“Nothing harms competition more than the creation of a monopoly through merger. In recent years, NCM and Screenvision competed aggressively by offering lower prices to advertisers, a variety of attractive financial incentives to movie theaters and better products and services overall. This scheme to eliminate competition should never have been considered, much less publicly proposed. We sued to preserve the significant competition between these competitors, and with the parties’ abandonment, we achieved that result. Their decision to abandon the transaction less than a month before trial is a testament to the strength of the Antitrust Division’s case and the hard work of our talented litigation team.”
Johnson City Resident Charles Randall Whitson Sentenced to Serve 87 Months in Federal Prison for Role in Drug ConspiracyRead the Press Release
GREENEVILLE, Tenn. – Charles Randall Whitson, 54, of Johnson City, Tenn., was sentenced on Mar. 16, 2015, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 87 months in federal prison. Whitson was previously convicted of conspiracy to distribute, and possess with the intent to distribute, 280 grams or more of a mixture and substance containing a detectable amount of cocaine base (“crack”). There is no parole in the federal system.
For approximately three years, Whitson participated in a large-scale crack cocaine conspiracy. He served as a street-level distributor and facilitator, repeatedly selling crack cocaine and arranging deals for others. As part of his plea agreement on file with the U.S. District Court, Whitson admitted to being personally responsible for at least 280 grams, but less than 840 grams, of crack cocaine. Whitson often used his residence as a place from which to sell crack cocaine, and let his coconspirators do the same.
As part of the investigation, law enforcement conducted seven different controlled drug transactions with members of this conspiracy. On three of those occasions, Whitson himself sold crack cocaine to individuals working with and acting under the supervision of law enforcement agents and officers.
Two others have previously been sentenced as part of this conspiracy. Michelle Nicole Lane, 33, of Blountville, Tenn., was sentenced to serve 132 months in prison. Cedric Nickose Carr, 29, of Chattanooga, Tenn. was sentenced to serve 120 months.
This case was the product of cooperation between the Johnson City Police Department, and Federal Bureau of Investigation. Assistant U.S. Attorney Nick Regalia represented the United States.
Huntington man pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that a Huntington man who participated in a heroin distribution ring in 2014, pleaded guilty today in federal court in Huntington to a drug charge. Paul A. Roberts, Jr., 21, entered a guilty plea for providing a residence in Huntington that was used by him and others as base for the distribution of heroin in the community.
From at least October of 2014 to December of 2014, Roberts and others used a home at 403 Homestead Place, Huntington, to operate their heroin distribution ring. Roberts signed a lease for the property, knowing it would be used as a base to store, package and distribute heroin.
On December 6, 2014, a United States Postal Inspector intercepted a package addressed to Roberts Homestead Place home. The package contained approximately 230 grams of heroin. After agents delivered the package, they executed a search warrant and seized heroin, equipment used to package and distribute heroin, more than $6,500 in cash, and four guns.
Roberts faces up to 20 years in federal prison, and is scheduled to be sentenced on June 15, 2015.
The Federal Bureau of Investigation Task Force, United States Postal Service, West Virginia State Police and Huntington Police Department conducted the investigation. Assistant United States Attorney Joseph F. Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
HHS OIG Top 10 Most Wanted Sentenced to 57 Months PrisonRead the Press Release
Contact Person: Jim May (803) 929-3000
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Columbia, South Carolina---- United States Attorney Bill Nettles stated that Karo Gotti Blkhoyan, a/k/a “Gotti,” age 34, of Glendale, California was sentenced last week in federal court in Columbia, South Carolina, for Conspiracy to Commit Money Laundering , a violation of 18 U.S.C. § 1956(h). Senior United States District Judge Cameron McGowan Currie of Columbia sentenced Blkhoyan to 57 months and three years supervised release. Blkhoyan was fugitive for approximately two years, when was arrested at the San Francisco International Airport attempting to re-enter the country.
Evidence presented established that the conspiracy was a transnational criminal organization that established a “ghost” medical clinic in South Carolina using stolen information from a South Carolina doctor. Members of the conspiracy enrolled the clinic in Medicare, established bank accounts, linked the bank accounts to a fictitious address which was a mailbox store, registered the clinic with the South Carolina Secretary of State, and began to bill Medicare. All together, the “ghost” clinic billed Medicare over 1.1 million dollars, with Medicare paying approximately $350,000 worth of claims. The money that was paid was laundered through Southern Californian banks and shell businesses by members of the conspiracy. During the sentencing hearing, Blkhoyan challenged his role in the conspiracy; however, the Court found that the defendant was a manager/supervisor of the conspiracy which increased his sentencing guidelines. Two other members of the conspiracy have previously pleaded guilty to laundering money. Four members of the conspiracy are currently international fugitives.
United States Attorney, Bill Nettles, stated ““When the rich take things that don’t belong to them they want us to call it fraud. But let’s be clear, it is stealing, it is wrong and against the law. He stole from all of us. We will continue to aggressively prosecute those who steal from us. Let there be no doubt about that.”
“Healthcare fraud is undoubtedly a lucrative business, but the business of IRS Criminal Investigation and our law enforcement partners, is to pursue criminals such as Karo Blkhoyan, and bring them to justice, no matter where they may attempt to hide.” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “Blkhoyan’s sentence is a warning to others that would defraud Medicare and steal from the programs that provide assistance for individuals in need. We will investigate every dollar, every fraudulent claim, and when you are found, you will go to prison.”
"Our agency is dedicated to investigating those responsible for health care fraud, including this former Most Wanted health care fugitive, who stole scarce taxpayer money meant to pay for legitimate patient care,” said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General’s Atlanta region. “Working closely with our law enforcement partners, our agents are determined to hold such fraudsters accountable for their crimes."
“Health care fraud affects every American. Waste, fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for all Americans. The sentencing of Karo Blkhoyan, shows the commitment of the FBI to stop those who would illegally manipulate the system. We are pleased with Blkhoyan’s sentence to 57 months,” stated Special Agent Charge, David A. Thomas, Columbia FBI Field Office.
The case was investigated by agents of the HHS OIG, IRS CID and FBI. Assistant United States Attorney Jim May of the Columbia office prosecuted the case.Georgia Man Pleads Guilty to Conspiracy to Commit Wire Fraud and Aggravated Identity Theft for Credit Card Fraud SchemeRead the Press Release
BOISE – Brian Treadwell, 25, of Buford, Georgia, pleaded guilty today in United States District Court to one count of conspiracy to commit wire fraud and one count of aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Sentencing is set for June 16, 2015, before U.S. District Chief Judge B. Lynn Winmill.
Treadwell was indicted, along with Rakeen Anderson, 31, of Atlanta, Georgia; Kyandre Banks, 34, of Lilburn, Georgia; Terrance Barimah, 26, of Floranceville, Georgia; Clarence Collins, 34, of Douglasville, Georgia; Jean Estinville, 26, of Lawrenceville, Georgia; Rashine Kale, 38, of Lawrenceville, Georgia; Charles Moore, 25, of Stone Mountain, Georgia; Jonathan Penn, 20, of Suwanee, Georgia; and Mikki Williams, 24, of Atlanta, Georgia on charges relating to a wire fraud and identity theft scheme. Banks, Collins, Estinville, Kale, Moore, Penn, Treadwell, and Williams were each charged with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Anderson was charged with conspiracy to commit wire fraud and wire fraud. Barimah was charged with conspiracy to commit wire fraud and illegal possession of device-making equipment.
According to the plea agreement, Treadwell traveled to the District of Idaho, along with his co-defendants, for the purpose of making fraudulent purchases of gift cards and prepaid debit cards from retail stores, using stolen credit card numbers encoded onto stock debit cards. Treadwell admitted to obtaining the stock debit cards encoded with unauthorized credit card numbers, and making purchases at retail stores on October 5, 2014. In all, Treadwell admitted to traveling to four separate retail stores, and making eight total purchases, using six different credit cards numbers that he was not authorized to use. Upon his arrest, Treadwell was found in possession of 10 debit cards encoded with unauthorized credit card numbers.
Conspiracy to Commit Wire Fraud is punishable by up to 20 years imprisonment, a $250,000 fine, a term of supervised release of not more than three years, and a $100 special assessment. Aggravated identity theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, a maximum fine of $250,000, and a special assessment of $100. As part of his plea, Treadwell also agreed to forfeit $49,953.41 in cash proceeds of the charged offenses.
Co-defendants Anderson, Barimah, Collins, Estinville, Kale, Moore, Penn, and Williams are currently scheduled for a jury trial on April 27, 2015. Co-defendant Kyandre Banks remains a fugitive.
The case was investigated by the United States Secret Service and the Boise Police Department.
Fresno Woman Pleads Guilty to Embezzling Money from Vocational CollegeRead the Press Release
FRESNO, Calif. —Sandi Marie Hollifield, 49, of Fresno, pleaded guilty today to theft from a program receiving federal funds, United States Attorney Benjamin B. Wagner announced.
According to court documents, Hollifield worked under contract at Galen College, a now-defunct vocational college in Fresno, as a bookkeeper. Beginning in September 2008, Hollifield embezzled money from Galen College by creating false invoices for supplies and charging Galen College for those supplies. These charges caused Galen College to issue checks paying the false invoices to Hollifield under the name of her fictitious business, “Total Business Forms.” Between September 15, 2008, and April 13, 2010, Hollifield deposited Galen College checks made payable to Total Business Forms totaling approximately $85,448.
This case is the product of an investigation by the Department of Education, Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Hollifield is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on June 15, 2015. Hollifield faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Letter Carriers Plead Guilty to A Drug Distribution Conspiracy and to Accepting Bribes to Divert Packages Containing MarijuanaRead the Press Release
Baltimore, Maryland – A former U.S. Postal Service (USPS) letter carrier, Antoinette McDaniels, age 46, of Windsor Mill, Maryland, pleaded guilty today to a bribery and drug conspiracy in which she accepted bribes to divert packages of marijuana sent through the mail and deliver the packages to co-conspirators. Former USPS letter carrier, Hilary Gainey, age 26, of Baltimore, pleaded guilty to the same charges on March 6, 2015.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City Sheriff John Anderson.
“The US Postal Inspection Service is determined to protect Postal employees and the US Mail from criminal misuse and unsafe elements,” said David M. McGinnis, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service - Washington Division. Inspector McGinnis continued, “Postal Inspectors will continue to team with our law enforcement partners to pursue those individuals who would endanger Postal employees and corrupt the US Postal Service to further their criminal enterprises.”
According to the their plea agreements, McDaniels and Gainey conspired with others who paid them bribes in exchange for diverting packages containing marijuana and delivering those packages to the co-conspirators.
Specifically, Gainey and McDaniels admitted that in December 2013 and January 2014, respectively, while they were employed by the U.S. Postal Service as letter carriers, they agreed to divert specific packages sent through the U.S. mail that contained marijuana, and deliver those packages to co-conspirators, in exchange for $100 per parcel. According to their plea agreements, the packages were sent via the U.S. mail from Arizona, California, Florida, and elsewhere, to addresses along McDaniels’ route in Baltimore and Gainey’s route in Columbia, Maryland.
During the course of the conspiracy Gainey and McDaniels delivered approximately 100 packages and 30 packages, respectively, to their co-conspirators, and were paid approximately $100 per delivery. In addition, McDaniels received a total of $1,700 from co-conspirators in the form of “loans” that they never requested to be paid back. Gainey was paid a total of $10,000 by the co-conspirators and McDaniels was paid a total of $4,700 by the co-conspirators. The total amount of marijuana distributed by McDaniels during the course of the conspiracy was between 80 and 100 kilograms. During her participation in the conspiracy, Gainey is responsible for the distribution of between 100 and 400 kilograms of marijuana.
McDaniels and Gainey each face a maximum sentence of five years in prison for the bribery conspiracy and two years in prison for bribery. McDaniel faces a maximum of 20 years in prison and Gainey faces a mandatory five years and up to 40 years in prison, for conspiracy to distribute and possess with intent to distribute marijuana. U.S. District Judge J. Frederick Motz has scheduled sentencing for McDaniels on May 8, 2015, at 10:00 a.m. and for Gainey on June 5, 2015, at 9:30 a.m.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service, DEA, Maryland State Police, Baltimore City Police Department and Baltimore City Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Jason D. Medinger, who is prosecuting the case.
Former Freedom Industries executives plead guilty to environmental crimesRead the Press Release
CHARLESTON, W.Va. – William E. Tis and Charles E. Herzing, former owners, officers, and directors of Freedom Industries, Inc., pleaded guilty in federal court in Charleston today to an environmental crime in connection with the January 2014 Elk River chemical spill, U.S. Attorney Booth Goodwin announced. Both men pleaded guilty to causing the unlawful discharge of MCHM into the Elk River without a permit. Sentencing is set for June 22, 2015.
The case is being investigated by the Federal Bureau of Investigation and the Environmental Protection Agency – Criminal Investigation Division.
Tis and Herzing’s plea agreements, which include stipulations of facts in which they admit their criminal conduct, are linked below.
Flatwoods, WV man convicted of assaulting federal employeeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Albert L. Fuhrmaneck, 50, of Flatwoods, West Virginia, was convicted in federal court today of assaulting a Department of Veterans Affairs employee, United States Attorney William J. Ihlenfeld, II, announced.In June 2014, Fuhrmaneck engaged in a verbal and physical confrontation with employees of the Department of Veterans Affairs Community Based Outpatient Clinic in Sutton, West Virginia.
Fuhrmaneck pled no contest today to one count of “Simple Assault on Federal Property.” He faces up to six months in prison and a fine of up to $5,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Fuhrmaneck’s plea of no contest, which has the same legal effect as a guilty plea, was accepted over the objection of the government.
Assistant U.S. Attorney Andrew Cogar is prosecuting the case on behalf of the government. The Department of Veterans Affairs Police are leading the investigation.
U.S. Magistrate Judge John S. Kaull presided.
Executive Office for Immigration Review Releases FY 2014 Statistics YearbookRead the Press Release
FALLS CHURCH, Va. - The Executive Office for Immigration Review (EOIR) today announced the release of its Fiscal Year (FY) 2014 Statistics Yearbook.
The book is a representation of data that EOIR tracked and compiled during the previous fiscal year. As in previous years, the figures and tables contained within the book examine respondents' cases by nationality, language, and disposition, and provide detailed information surrounding asylum cases.
"The annual publication of the Statistics Yearbook is one way in which EOIR works to provide transparency into the agency's daily work," said EOIR Director Juan P. Osuna. "We believe that providing our stakeholders with this tool allows for an improved understanding about agency policies and procedures."
Hard copies of the publication are not available to the public, but a user-friendly version is available at http://www.justice.gov/eoir/statspub/fy14syb.pdf.
- EOIR -
The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR's immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals—whom the Department of Homeland Security charges with violating immigration law—should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR's Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.
District Man Sentenced to 15 Years in PrisonRead the Press Release
District Man Sentenced to 15 Years in Prison
For Killing Man Following Brief Argument Over Beer
Shooting Took Place at Northwest Washington Park
WASHINGTON - James Johnson, 32, of Washington, D.C., has been sentenced to 15 years in prison for fatally shooting a man last year at a park in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced today.
Johnson pled guilty in November 2014, in the Superior Court of the District of Columbia, to voluntary manslaughter while armed for the death of Talbert Bright. The plea, which was contingent upon the Court’s approval, called for a prison term of 15 years. The Honorable John Ramsey Johnson accepted the plea on March 13, 2015, and sentenced Johnson accordingly. Upon completion of his prison term, Johnson is to be placed on five years of supervised release.
According to the government’s evidence, in the early morning hours of June 28, 2014, Johnson was in a small park in the 200 block of Massachusetts Avenue NW, drinking beer with other individuals who had come there for a social gathering. Johnson had a small cooler filled with several cans of beer. Mr. Bright, 48, who had been in the park earlier that evening but had left to go home, returned to the park at about 2:45 a.m.
Shortly after Mr. Bright arrived, he and Johnson engaged in a brief verbal argument over beer. Mr. Bright took sneakers out of his duffel bag to change into from the sandals he had on his feet. While Mr. Bright changed into his sneakers, Johnson reached into a black backpack and took out a .9 mm pistol, pointed the gun at Mr. Bright, and fired several times. Mr. Bright was hit three times, once in the center of his chest. He was transported to Washington Hospital Center, where he was pronounced dead shortly thereafter.
In announcing the sentence, U.S. Attorney Machen commended the work of the detectives of the Criminal Investigations Division, crime scene officers, and the First Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Allen and Paralegal Specialist Lashone Samuels. Finally, he acknowledged the efforts of Assistant U.S. Attorney Richard DiZinno, who prosecuted the case.
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Detroit man pleads guilty to distributing heroin in HuntingtonRead the Press Release
Huntington, W.VA. – United States Attorney Booth Goodwin announced that Keith Cornell McKinney, also known as “Tony,” 32, of Detroit, Michigan, pleaded guilty today to distribution of heroin.
McKinney admitted that on October 9, 2013, he sold heroin to an informant working for the Huntington Drug & Violent Crimes Task Force. The transaction occurred at a residence on Rear 30th Street in Huntington.
McKinney who is scheduled to be sentenced on June 15, 2015, faces up to 20 years in federal prison and a $1 million fine.
The case is being investigated by the Federal Bureau of Investigation, Barboursville Police Department, Cabell County Sheriff’s Department and the Huntington Drug & Violent Crimes Task Force. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Department of Justice Files Suit Against Storage Company for Unlawfully Selling Service Members' BelongingsRead the Press Release
The Department of Justice has filed a lawsuit to recover damages from a storage company that allegedly violated the Servicemembers Civil Relief Act (SCRA) when it sold service members’ personal property without obtaining the necessary court orders. The defendants in this lawsuit are Daniel E. Homan and Horoy Inc., doing business as Across Town Movers—a San Diego, California, storage company. Homan is the President and sole owner of Horoy Inc.
The SCRA protects the rights of service members while on active duty by suspending or modifying certain civil obligations. The law states that a storage lien may not be enforced against service members during, or 90 days subsequent to, their period of military service without a court order. The Department of Justice’s complaint alleges that, since 2011, Across Town Movers sold the personal property of 11 service members without obtaining a required court order.
The complaint further alleges that after illegally selling one of the service member’s personal property, Across Town Movers continued to receive regular payments from the United States for storage of the sold property. That service member is U.S. Navy Master Chief Petty Officer Thomas E. Ward.
In 2006, Master Chief Ward, a 30-year veteran, was deployed overseas. He placed his valuable car parts and many household items into storage, and entrusted Across Town Movers to keep his personal property safe until he returned. Just before he returned home, he learned that Across Town Movers had auctioned all of his stored personal property, including vintage original car parts.
“Federal law does not allow storage companies to sell the contents of a service member’s storage lot without a court order,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Storage companies should check the Defense Department’s military database and other resources before conducting any auction to see if the customer is protected by the Servicemembers Civil Relief Act. The Department of Justice is committed to protecting the rights of the men and women who serve in our Armed Forces and we will continue to devote time and resources to make sure that they are given the legal protections they deserve.”
“Service members, especially when deployed overseas, should be able to focus on protecting our county and shouldn’t have to worry about losing their personal property,” said U.S. Attorney Laura E. Duffy of the Southern District of California. “Congress enacted the SCRA for this purpose, and we will pursue all appropriate remedies to ensure that our service members’ rights are protected. Whether large or small, businesses will be held accountable for violating those rights.”
In addition to seeking damages for the value of the auctioned goods, the SCRA provides for civil monetary penalties of up to $55,000 for the first offense and $110,000 for each subsequent offense. The Department of Justice will also seek injunctive relief.
This lawsuit was filed today in the Southern District of California. This matter resulted from a referral to the Justice Department by the U.S. Navy.
Service members and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting service members is available at www.servicemembers.gov.
This matter is being handled by Assistant U.S. Attorneys Dylan M. Aste and Leslie M. Gardner of the Southern District of California.
Department of Justice Files Suit Against Storage Company for Unlawfully Selling Servicemembers’ BelongingsRead the Press Release
SAN DIEGO – The Department of Justice has filed a lawsuit to recover damages from a storage company that allegedly violated the Servicemembers Civil Relief Act when it sold service members’ personal property without obtaining the necessary court orders. The defendants in this lawsuit are Daniel E. Homan and Horoy Inc., doing business as Across Town Movers—a San Diego, California, storage company. Homan is the President and sole owner of Horoy Inc.
The Servicemembers Civil Relief Act, known as SCRA, protects the rights of service members while on active duty by suspending or modifying certain civil obligations. The law states that a storage lien may not be enforced against service members during, or 90 days subsequent to, their period of military service without a court order. The Department of Justice’s complaint alleges that, since 2011, Across Town Movers sold the personal property of 11 service members without obtaining a required court order.
The complaint further alleges that after illegally selling one of the service member’s personal property, Across Town Movers continued to receive regular payments from the United States for storage of the sold property. That service member is U.S. Navy Master Chief Petty Officer Thomas E. Ward.
In 2006, Master Chief Ward, a 30-year veteran, was deployed overseas. He placed his valuable car parts and many household items into storage, and entrusted Across Town Movers to keep his personal property safe until he returned. Just before he returned home, he learned that Across Town Movers had auctioned all of his stored personal property, including vintage original car parts.
“Service members, especially when deployed overseas, should be able to focus on protecting our county and shouldn’t have to worry about losing their personal property,” said U.S. Attorney Laura E. Duffy of the Southern District of California. “Congress enacted the SCRA for this purpose, and we will pursue all appropriate remedies to ensure that our service members’ rights are protected. Whether large or small, businesses will be held accountable for violating those rights.”
“Federal law does not allow storage companies to sell the contents of a servicemember’s storage lot without a court order,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Storage companies should check the Defense Department’s military database and other resources before conducting any auction to see if the customer is protected by the Servicemembers Civil Relief Act. The Department of Justice is committed to protecting the rights of the men and women who serve in our Armed Forces and we will continue to devote time and resources to make sure that they are given the legal protections they deserve.”
In addition to seeking damages for the value of the auctioned goods, the SCRA provides for civil monetary penalties of up to $55,000 for the first offense and $110,000 for each subsequent offense. The Department of Justice will also seek injunctive relief.
This lawsuit was filed today in the Southern District of California. This matter resulted from a referral to the Justice Department by the U.S. Navy.
Service members and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting service members is available at www.servicemembers.gov.
This matter is being handled by Assistant U.S. Attorneys Dylan M. Aste and Leslie M. Gardner of the Southern District of California.
Clarksburg man sentenced for drug traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joseph Scott Green, 46, of Clarksburg, was sentenced to 66 months in prison for drug trafficking, United States Attorney William J. Ihlenfeld, II, announced.During a December 2012 traffic stop, Green, also known as “Scotty,” was discovered in possession of bath salts and a loaded 12 gauge shotgun. He pled guilty in November 2014 to one count of “Possession with Intent to Distribute Controlled Substance Analogue,” and one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime.” He was sentenced to sixty months in prison for the firearm offense and six months in prison for the drug trafficking offense.
Assistant U.S. Attorney Shawn Morgan prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, led the investigation.
U.S. District Judge Irene M. Keeley presided.
Christopher C. Myers Appointed as Acting United States Attorney for the District of North DakotaRead the Press Release
FARGO - The Executive Office of United States Attorneys has selected Christopher C. Myers to serve as Acting United States Attorney pending the confirmation of a presidentially-appointed United States Attorney for the District of North Dakota.
Chris started in the office as an Assistant United States Attorney in 2002 after being hired by former United States Attorney Drew Wrigley and has been a federal prosecutor in the U.S. Attorney's office for nearly thirteen (13) years, spending ten (10) years as the Organized Crime Drug Enforcement Task Force (OCDETF) prosecutor. In the OCDETF role, Chris specialized in identifying, targeting, and dismantling criminal enterprises of national and international scope.
In December of 2013 Chris was promoted to First Assistant United States Attorney by former United States Attorney Tim Purdon and served as second-in-command of the U.S. Attorney's Office.
Prior to joining the U.S. Attorney's Office Chris was the Chief Assistant Clay County Attorney (1998-2002) and an Assistant Cass County States Attorney (1997-1998).
Before becoming a prosecutor, Chris was a Special Agent with the North Dakota Bureau of Criminal Investigation, specializing in narcotics investigations.
Chris is a graduate of Fargo North High School, North Dakota State University, and earned a Masters Degree in Public Administration as well as his law degree from Drake University.
Chesapeake Man Sentenced for Distribution of Child PornographyRead the Press Release
NORFOLK, Va. – Michael Odell Shaddeau, 31, of Chesapeake, Virginia, was sentenced today to 10 years in prison, followed by 15 years of supervised release for distribution of child pornography.
Shaddeau pleaded guilty to a criminal information on December 2, 2014. According to court documents, Shaddeau was discovered distributing and trading images of child pornography via e-mail using his Sony PlayStation Vita handheld console. Homeland Security Investigations and parallel agencies made the discovery which resulted in Shaddeau’s identification.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C., and Colonel K. L. Wright, Chief of Police, Chesapeake Police Department, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
This case was investigated by Homeland Security Investigations and the Chesapeake Police Department. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14cr143Car Salesman Sentenced to Prison for Odometer Fraud SchemeRead the Press Release
A car salesman was sentenced earlier today in U.S. District Court in Los Angeles to serve one year and one day in prison on charges related to an odometer tampering scheme, the Justice Department announced.
Jeffrey Levy, 63, of Woodland Hills, California, was also ordered to pay $115,818.80 in restitution to victims who purchased vehicles without knowing the odometers displayed incorrect mileages. In November 2014, Levy pleaded guilty to one count of conspiracy to tamper with odometers.
“A car salesman should know better than anyone that odometer tampering is a fraud and a crime,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “As this prosecution demonstrates, criminals with an electronic tool can easily alter electronic vehicle odometers, defrauding future car buyers.”
Levy was a salesman at Galpin Ford in North Hills, California. In his guilty plea, Levy admitted that he referred customers and friends to his co-conspirator, Shamai Salpeter, who rolled back odometers in the driveway of his residence in Woodland Hills. Salpeter was also charged and pleaded guilty to odometer tampering and conspiracy to commit odometer fraud and is scheduled to be sentenced on April 13.
Levy knew that some of his customers had exceeded the maximum allowed mileage under the terms of their leases and wished to avoid fees and penalties. He knew that other customers wanted to lower the mileage on their odometers to make their vehicles more valuable when they traded in the vehicles. After Salpeter altered the odometers, Levy’s customers returned or traded in their vehicles with false, lower mileage readings. Levy accepted the vehicles without alerting Galpin Ford that the odometer readings were false. Future purchasers of the vehicles were defrauded because they purchased vehicles with false odometer readings. Galpin Ford cooperated with the government’s investigation.
“Tampering with odometers is a crime that puts consumers’ lives and wallets at risk,” said Administrator Mark Rosekind of the National Highway Traffic Safety Administration (NHTSA). “Not only do purchasers end up paying more for used cars, but rolling back the mileage on odometers hides necessary information that could ultimately affect a car’s safety and the costs of future repairs to consumers.”
This case is being prosecuted by Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch. The case was investigated by the NHTSA’s Office of Odometer Fraud Investigation and California’s Department of Motor Vehicles.
NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals who have information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.
More information on odometer fraud is available on the NHTSA website, and tips on detecting and avoiding odometer fraud are available at this page.