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Monday 26 January 2015
13 Suspects Indicted in West Tennessee on Federal Drug Trafficking ViolationsRead the Press Release
Jackson, Tenn. –Edward L. Stanton III, United States Attorney for the Western District of Tennessee; A. Todd McCall, Special Agent in Charge of the Memphis Division of the FBI; Steve Isbell, Chief of Police for the Dyersburg Police Department; and Jeff Box, Sheriff of Dyer County, announced today the unsealing of an indictment charging 13 suspects with federal drug trafficking violations. The suspects were arrested early today during a round-up conducted by multiple federal (the FBI, DEA, ATF and U.S. Marshals Service), state (Tennessee Bureau of Investigation, 24th Judicial District Drug Task Force, and Tennessee Highway Patrol), and local law enforcement agencies (Dyer County Sheriff’s Department, Dyersburg Police Department, Jackson Police Department, Lexington Police Department, and Madison County Sheriff’s Department).
The indictments were returned by a federal grand jury in Jackson on January 20, 2015, but remained under seal until today’s arrests. Each indictment contained counts alleging violations of the Controlled Substances Act.
The suspects arrested during the operation were:
• Troy Richard Anderson Jr, 25 (already in state custody) • Tyler Demond Armstrong, 24, of Dyer County • Bree Anna Blalock, 26, of Dyer County • Tyrus Ray Blalock, 45, of Dyer County • Amy Hurt Dew, 50, of Dyer County • Antonia Marshell Jones, 30, of Dyer County • Marlos Lekeith Mann, 39 (already in state custody) • William Frank Perry Jr, 44, of Dyer County • Anthony Lee Randaul, 36, of Dyer County • Steve Lee Roby, 44, of Dyer County • Kenny Charles Vaughn, 37 (already in federal custody) • Terrance Terone Warren, 49, of Dyer County
During the course of this investigation, law enforcement officials have seized illicit narcotics, U.S. currency, firearms, and drug paraphernalia.
The charges in the indictments stem from the illegal activity of selling, manufacturing, and distributing, powder cocaine, crack cocaine, and marijuana, as well as the unlawful possession of ammunition by convicted felons.
“These individuals are charged with serious drug crimes, and the consequences they face if convicted are also serious,” said U.S. Attorney Stanton. “Illegal drug trafficking and the violence that often accompanies it are a plague upon our communities. My office will vigorously pursue any and all involved in these illegal activities.”
“These indictments and arrests are the result of the cooperation of local, state and federal law enforcement agencies and the hard work of the men and women from all of the agencies involved,” said Special Agent in Charge A. Todd McCall. “The FBI is dedicated to continuing to work with our partners to target, investigate and bring to justice those who prey on our community.”
“I am grateful for our federal, state, and local law enforcement partners for their assistance. We are a team that is committed to suppress the criminal element in our community,” stated Chief of Police Isbell. “I would also like to recognize the men and women of the Dyersburg Police Department for their hard work. It is truly their work and dedication that has made this a successful operation.”
“This Task Force partnership with both our sheriff's office, police department and the FBI has been beneficial in providing the additional resources needed to make these type of cases targeting illegal activity,” stated Sheriff Box. “This operation is another example of how well our agencies work together in this partnership to attack drugs and criminal activity. Protecting our citizens of this community from crime is our highest priority, we will continue to work with our partners to detect, investigate and prosecute those who seek to advance criminal activity. I want to commend our TFO's, FBI agents and the U.S. Attorney's Office for being a dedicated team in the support of making Dyersburg and Dyer County a safer community.”
The case was investigated by members of the FBI’s Memphis Safe Streets Task Force (ME SSTF). The ME SSTF is a FBI sponsored task force comprised of agents from the FBI Memphis Division’s Jackson Resident Agency, the Dyer County Sheriff’s Department, the Dyersburg Police Department, the Jackson Police Department, and the Lexington Police Department. The ME SSTF focuses on bringing together the combined resources of the FBI and other federal, state, and local law enforcement partners to address violent criminal threats. This case is being prosecuted by Assistant United States Attorney Beth Boswell on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13 Sospechosos Acusados En El Oeste De Tennessee En Violaciones Federales Por Trafico De DrogasRead the Press Release
Jackson, Tennessee - Edward L. Stanton III, Fiscal Federal para el Distrito Oeste de Tennessee; A. Todd McCall, Agente Especial a Cargo de la División del FBI de Memphis; Steve Isbell, Jefe de la Policía del Departamento de Policía de Dyersburg; y Jeff Box, el Jefe de la Policía del condado de Dyer, anunciaron hoy la revelación de una acusación formal contra 13 sospechosos con violaciones federales por narcotràfico. Los sospechosos fueron detenidos la madrugada de hoy durante una redada llevada a cabo por múltiples agencias federales (FBI, DEA, ATF y US Servicio de Aguaciles), estatales (Oficina de Investigaciones de Tennessee, 24ta Distrito Judicial del Destacamento Antidroga y las Patrulla de Carreteras de Tennessee) y fuerzas locales del orden (Departamento del Jefe de la Policía del Condado de Dyer, Departamento de Policía de Dyersburg, Departamento de Policía de Jackson, Departamento de Policía de Lexington y el Departamento del Sheriff del Condado de Madison).
Las acusaciones fueron devueltas por un gran jurado federal en Jackson el 20 de enero de 2015, pero se mantuvo bajo sello hasta los arrestos de hoy. Cada acusación contenía recuentos alegando violaciones de la Ley de Sustancias Controladas.
Los sospechosos arrestados durante la operación fueron:
• Troy Richard Anderson Jr, 25 (ya bajo custodia estatal) • Tyler Demond Armstrong, 24, of Dyer County • Bree Anna Blalock, 26, of Dyer County • Tyrus Ray Blalock, 45, of Dyer County • Amy Hurt Dew, 50, of Dyer County • Antonia Marshell Jones, 30, of Dyer County • Marlos Lekeith Mann, 39 (ya bajo custodia estatal) • William Frank Perry Jr, 44, of Dyer County • Anthony Lee Randaul, 36, of Dyer County • Steve Lee Roby, 44, of Dyer County • Kenny Charles Vaughn, 37 (ya bajo custodia federal) • Terrance Terone Warren, 49, of Dyer County
Durante el curso de esta investigación, los agentes del orden han incautado estupefacientes ilícitos, moneda de Estados Unidos, armas de fuego y parafernalia de drogas.
Los cargos en las acusaciones se derivan de la actividad ilegal de venta, fabricación y distribución de cocaína en polvo, crack y marihuana, así como la posesión ilegal de municiones por criminales convictos.
“Estos individuos estàn acusados de delitos graves por drogas, así como las consecuencias que ellos enfrentan si son declarados culpable también son graves ", dijo el Fiscal Federal Stanton. "El tràfico ilegal de drogas y la violencia que a menudo la acompaña son una plaga sobre nuestras comunidades. Mi oficina perseguirà enérgicamente cualquier y todos los involucrados en estas actividades ilegales.”
“Estas acusaciones y arrestos son el resultado de la cooperación de las agencias policiales locales, estatales y federales y el trabajo duro de los hombres y mujeres de todas las agencias involucradas ", dijo el agente especial a cargo A. Todd McCall. "El FBI està dedicado a continuar trabajando con nuestros socios para orientar, investigar y llevar ante la justicia a los que se aprovechan de nuestra comunidad.”
“Estoy agradecido por la asistencia de nuestros federales, estatales y socios locales de la ley. Somos un equipo que se ha comprometido a suprimir el elemento criminal en nuestra comunidad ", declaró Jefe de Policía Isbell. "También me gustaría reconocer a los hombres y mujeres del Departamento de Policía de Dyersburg por su arduo trabajo. Es realmente su trabajo y dedicación la que ha hecho de esta una operación exitosa.”
“Esta asociación con los Grupo de Misiones Especiales de ambas Oficinas del Sheriff, tanto de nuestro Departamento de la Policía y el FBI ha sido beneficioso en el suministro de los recursos adicionales necesarios para hacer estos tipos de casos dirigidos a actividades ilegales", afirmó Sheriff Box. "Esta operación es otro ejemplo de lo bien que nuestros organismos trabajan juntos en esta alianza para atacar a las drogas y la actividad delictiva. Proteger a los ciudadanos de esta comunidad ante la delincuencia es nuestra màxima prioridad, vamos a seguir trabajando con nuestros socios para detectar, investigar y enjuiciar a aquellos que buscan avanzar en la actividad criminal. Quiero felicitar a nuestro Grupo de Misiones Especiales, agentes del FBI y la Oficina del Fiscal de Estados Unidos por ser un equipo dedicado al apoyo y por hacer de Dyersburg y el condado de Dyer una comunidad màs segura.”
El caso fue investigado por los miembros del FBI llamado Fuerzas Especial de las Calles Segura de Memphis, por sus siglas en inglés (ME SSTF). El ME SSTF es un grupo de misiones especiales patrocinado por el FBI compuesto por agentes de la Agencia de Residente de Jackson de la División del FBI de Memphis, el Departamento del Sheriff del condado de Dyer, el Departamento de Policía de Dyersburg, el Departamento de Policía de Jackson, y el Departamento de Policía de Lexington. El ME SSTF se centra en recopilar los recursos combinados del FBI y otras agencias federales, estatales y locales de la ley para hacer frente a las amenazas de criminales violentos. Este caso està siendo procesado por el Fiscal Federal Auxiliar Beth Boswell en nombre del gobierno.
Los cargos y alegaciones contenidos en la acusación son meras acusaciones y los acusados son considerados inocentes hasta que se demuestre su culpabilidad.
Version en Inglés
Sunday 25 January 2015
Federal Officials Participate in New Mexico Pharmacists Association’s Mid-Winter MeetingRead the Press Release
ALBUQUERQUE – Representatives from the U.S. Attorney’s Office and the DEA participated in the New Mexico Pharmacists Association’s Mid-Winter Meeting held this weekend in Albuquerque, N.M., for the purpose of educating the Association’s membership about how prescription drug trafficking and abuse contributes to New Mexico’s heroin and opioid epidemic and enlisting their support in combatting the epidemic.
Group Supervisor Richard Stark of the Tactical Diversion Squad at the Albuquerque Office of the DEA delivered a presentation entitled, “The Prescription Drug Epidemic in New Mexico: How Promoting a Partnership between the DEA and Pharmacists Can Help.” Assistant U.S. Attorney Joel R. Meyers, Supervisor of the Organized Crime Section of the U.S. Attorney’s Office, discussed the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. This Initiative, which was launched earlier this month, is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center in partnership with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in the District of New Mexico.
“New Mexico’s opioid addiction and overdose death rates have been at or near the top of the national scale for years,” said U.S. Attorney Damon P. Martinez. “Under the HOPE Initiative, one way we will take on this epidemic is by educating medical professionals about how they can educate their patients, particularly young adults, about the dangers of prescription drug abuse.”
Special Agent in Charge Will Glaspy of DEA’s El Paso Division added, “DEA is committed to developing and maintaining strong working relationships with pharmacists and other registrants. By ensuring that pharmacists have the education and tools they need so they can educate parents and young people about the dangers of prescription drug misuse and abuse, we can and will make a difference in combatting this deadly epidemic.”
The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The participation of the U.S. Attorney’s Office and the DEA in the New Mexico Pharmacists Association’s Med-Winter Meeting was undertaken under the prevention and education component of the HOPE Initiative.
Friday 23 January 2015
Woodbridge Attorney Sentenced to Prison for Failing to Pay Nearly $400k in Federal Income TaxesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JERRY GRUENBAUM, 59, of Woodbridge, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to six months of imprisonment, followed by one year of supervised release, for failing to pay taxes on more than $1.3 million in income over a six-year period.
According to court documents and statements made in court, from 2005 to 2010, GRUENBAUM, an attorney, failed to report approximately $1,310,100 in taxable income on his federal tax returns. For the 2005, 2006 and 2007 tax years, GRUENBAUM filed tax returns that he knew significantly understated his actual taxable income, and for the 2008, 2009 and 2010 tax years, he failed to file any tax returns. Through this scheme, GRUENBAUM failed to pay $394,226 in additional tax due.
GRUENBAUM also took steps to make it difficult for the IRS to determine his true income, including calculating the gross receipt figures for one of his businesses by reviewing just one of a number of the business’s bank accounts that he knew had reportable income. He also utilized corporate bank accounts to pay his personal expenses, and received compensation for services rendered from at least three different corporations in the form of stock shares and salaries, and failed to report this income on his tax returns.
GRUENBAUM is required to pay approximately $877,646 in back taxes, penalties and interest.On July 15, 2014, GRUENBAUM pleaded guilty to two counts of filing a false federal tax return.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
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[email protected]Woman Sentenced for Defrauding Gordon Oaks' ResidentsRead the Press Release
The United States Attorney for the Southern District of Alabama, Kenyen R. Brown, announces that Ashley Robinson Fuqua, was sentenced today to serve 3 years probation, and to pay $20, 962.32 and a $100.00 SA. This case came to the attention of the Mobile Police Department when it was reported that new residents at Gordon Oaks had given Fuqua, an employee of Gordon Oaks, cash and checks intended to pay their rent and fees at the assisted living facility. Instead, Fuqua altered the checks and deposited them into her own account.
This case was investigated by the Mobile Police Department.
Wise Dentist Sentenced on Drug ChargesRead the Press Release
BIG STONE GAP, VIRGINIA – A dentist from Wise, Virginia, who previously pleaded guilty to illegally possessing and distributing more than 10,000 dosages of hydrocodone, was sentenced today in the United States District Court for the Western District of Virginia in Big Stone Gap.
In August 2014, Newton Carroll Mullins, 66, of Wise, Va., waived his right to be indicted and pled guilty to a two-count Information charging him with one count of possession with the intent to distribute and distributing hydrocodone and one count of causing the possession of more than 10,000 dosage units of hydrocodone by fraud. Today in District Court he was sentenced to two months of federal incarceration to be followed by four months on home incarceration.
“The abuse of prescription drugs continues to plague communities in Southwest Virginia and across the country,” Acting United States Attorney Anthony P. Giorno said today. “The problem impacts all levels of society and destroys communities. Long-term abuse of prescription drugs often leads to use of other opioids like heroin. We will continue to aggressively combat the abuse of opioids through vigorous enforcement actions and targeted outreach initiatives.”
Mullins previously admitted that between December 2012 and March 2014 he ordered large amounts of hydrocodone from a drug distributor for use by his dental practice. However, Mullins and his friend used the hydrocodone for their personal use. In addition, Mullins admitted to writing prescriptions for hydrocodone to his employees, who would fill the prescriptions and provide the drugs to Mullins.
The investigation of the case was conducted by the Drug Enforcement Administration’s Tactical Diversion Squad. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
Winchester Man Sentenced on Child Pornography ChargesRead the Press Release
HARRISONBURG, VIRGINIA – A Winchester, Virginia man who previously pleaded guilty to two charges related to child pornography, was sentenced late yesterday in the United States District Court for the Western District of Virginia in Harrisonburg.
Justin Katz, 22, of Winchester, Va., previously pled guilty to one count of possession of child pornography and one count of distribution of child pornography. Yesterday in District Court, Katz was sentenced to 96 months of federal incarceration.
“The United States Attorney’s Office, along with our federal and state partners, will continue to prioritize cases involving the exploitation of children,” Acting United States Attorney Anthony P. Giorno said today. “Those dedicated to investigating and prosecuting crimes again children will continue to search out those individuals who traffic in this obscene material and bring them to justice.”
“The possession and distribution of child pornography is not a victimless crime,” said Clark E. Settles, special agent in charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C. “Each time a predator like Katz views or shares those images and videos, a child is victimized all over again. Let this sentence be a warning to child predators. We will find you, investigate you and ensure you are prosecuted to the fullest extent of the law.”
According to evidence presented at previous hearings by Assistant United States Attorney Elizabeth G. Wright, on April 10, 2012, an agent with Homeland Security Investigations, working out of San Diego, Calif., was working in an undercover capacity while browsing the Gnutella network, a large peer-to-peer file sharing network often utilized by child pornographers to trade child pornography.
Through the file sharing feature of the network, the undercover agent was able to download two child pornography video files from an IP address associated with the residence of Mr. Katz in Winchester, Virginia. A search warrant of the defendant’s residence was executed in September 2012. A forensic examination of the defendant’s computer revealed 194 images depicting child pornography, which included 172 images depicting pre-pubescent child pornography, and 202 videos depicting child pornography, which included 100 videos depicting pre-pubescent child pornography.
The investigation of the case was conducted by Homeland Security Investigations with assistance from the Computer Forensic Unit of the Virginia Office of the Attorney General. Assistant United States Attorney Elizabeth G. Wright prosecuted the case for the United States.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Jerome White, 25, of South Bend, Indiana pled guilty to the felony offense of possession of a firearm in furtherance of a drug trafficking crime. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Drug Enforcement Administration. Sentencing has been set for April 24, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Dion Courtney, 38, of Gary, Indiana pled guilty to the felony offenses of theft of public funds and aggravated identity theft. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service-Criminal Investigation Division, U.S. Postal Inspection Service, U.S. Secret Service, and Social Security Administration-Office of Inspector General. Sentencing has not yet been scheduled. This case is being prosecuted by Assistant United States Attorney Toi Denise Houston.
- Jarrett Danley, 30, of Gary, Indiana pled guilty to the felony offense of distribution of crack. This charge was filed as a result of an investigation by Federal Bureau of Investigation GRIT task force. Sentencing has been set for April 17, 2015. This case is being prosecuted by Assistant United States Attorney Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Juan M. Sosa, 51, of Fort Wayne, Indiana pled guilty to the felony offense of being a convicted felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
Warren County, New Jersey, Construction Business Owner Admits Concealing Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A Belvidere, New Jersey, man today admitted he concealed a mortgage fraud scheme carried out by his wife, a former real estate title agent, in which they obtained seven loans, totaling more than $3.7 million, on two properties located in Belvidere and Wood-Ridge, New Jersey, U.S. Attorney Paul J. Fishman announced.
Zbigniew Cichy, 45, pleaded guilty before U.S. District Judge Stanley R. Chesler to a superseding information charging him with one count of misprision of felony.
According to documents filed in this case and statements made in court:
Cichy owned and operated Global Builders LLC, a construction company. His wife, Ania Nowak, 48, also of Belvidere, was the owner and operator of A.N. Title Agency LLC and was an agent for Stewart Title Guaranty Company.
Nowak obtained seven mortgage loans through fraudulent means, including: an April 2005 loan for her sham sale of the Wood-Ridge property to Cichy; Cichy’s November 2005 refinancing loan on the Wood-Ridge property; a 2005 construction loan to build a house on the Belvidere property owned by Cichy; Cichy’s August 2006 loan on the Belvidere property; May 2007 loans for Cichy’s sham sale of the Belvidere property to another conspirator in the scheme, Kim Salvemini, 60, of Wallington, New Jersey; Salvemini’s May 2007 refinancing loan on the Belvidere property; and Cichy’s November 2007 refinancing loan on the Belvidere property. Nowak admitted that, for each of the seven loans, she lied on loan documents, failed to pay off prior mortgages at closing, failed to record the mortgages and any deeds and that most of the loans went into default for non-payment.
Cichy admitted that although he was aware of the mortgage fraud scheme, including Nowak’s failure to pay off existing liens at closing, he failed to report the fraudulent mortgage transactions to authorities. Instead, Cichy took steps to conceal the scheme by making mortgage payments on a number of the fraudulent loans out of his personal and business accounts to prevent foreclosure and thereby conceal from lenders that the loans had been obtained through fraud. Cichy also admitted to lying on certain loan documents that were used in furtherance of the scheme.
The charge of misprision of felony to which Cichy pleaded guilty carries a maximum penalty of three years in prison and a fine of $250,000, or twice the gross gain or loss resulting from the offense. Sentencing is scheduled for May 5, 2015.
Nowak pleaded guilty on Jan. 15, 2015, and is also scheduled to be sentenced May 5, 2015. Salvemini previously pleaded guilty to her role in the scheme and awaits sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shirley U. Emehelu and Senior Litigation Counsel Leslie F. Schwartz of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark.
Today’s guilty plea is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorney’s offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
15-031
Defense counsel: Carl J. Herman Esq., West Orange, New Jersey
Virginia Man Pleads Guilty to Contraband Cigarette TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Virginia man pleaded guilty in federal court today to his role in a multi-million dollar, multi-state conspiracy to transport hundreds of thousands of cartons of contraband cigarettes from the Kansas City, Mo., area to the state of New York, where they were sold primarily on Indian reservations.
Gerald E. Barber, 68, of Virginia, pleaded guilty before U.S. District Judge Brian C. Wimes to participating in a conspiracy to commit wire fraud and contraband cigarette trafficking from July 2010 to Jan. 26, 2012.
Barber was the president of the Seneca-Cayuga Tobacco Company (SCTC) in Grove, Okla., which is a corporation operated by the Seneca Cayuga Tribe of Oklahoma, a federally recognized Indian tribe.
Although SCTC manufactures its own brands of native cigarettes, Barter was interested in selling unstamped and untaxed premium-brand cigarettes to smoke shops on other Indian nations, specifically in the state of New York. New York pre-collects an excise tax of $4.35 per pack of cigarettes from wholesalers for sales to Indian nations and tribes. Federal and New York state law requires that tax stamps be affixed to cigarette packages – prior to their sale to consumers – reflecting that the required state taxes have been paid. As part of this conspiracy, New York’s state excise tax of $4.35 per pack was not paid.
Barber ordered premium-brand contraband cigarettes from a co-conspirator, who in turn purchased those cigarettes from co-defendant Craig Sheffler, 45, of Independence, through his business, Cheap Tobacco Wholesale.
Sheffler, who pleaded guilty to his role in the conspiracy on Dec. 19, 2014, made regular purchases of contraband cigarettes from undercover agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Barber then sold those premium-brand cigarettes to smoke shops located on New York Indian reservations, including Jan’s Smoke Shop and AJ’s Candy & Tobacco, LLC, both of whom have pleaded guilty to their roles in the conspiracy. The contraband cigarettes were transported to New York without prior approval by the New York Department of Taxation and Finance and without first paying the required $4.35 per pack excise tax. The benefit to those smoke shops was that they did not pay New York state cigarette taxes; thus, they could undercut the prices charged by off-reservation cigarette retailers by over $40 per carton.
To pay for the cigarettes (which were charged on delivery), the Indian smoke shops wired money across state lines, often to SCTC. SCTC then wired money across state lines to co-conspirators, who wired money across state lines to Cheap Tobacco Wholesale. Sheffler paid the undercover ATF agents, often in cash.
Under the terms of today’s plea agreement, Barber must pay a money judgment in the amount of $80,000, representing the remaining profits obtained by SCTC as a result of his role in the conspiracy.
According to the indictment, conspirators purchased more than $17 million worth of contraband cigarettes from ATF agents during an undercover operation. Approximately 201,340 cartons of cigarettes – containing 10 packs per carton – were transported to New York without paying the required $4.35 per pack excise tax. The untaxed cigarettes were sold by New York retailers and smoke shops on the reservations in the state of New York. The total state excise tax lost to the state of New York was more than $8 million.
Under federal statutes, Barber is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. 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. Attorneys Paul S. Becker and Justin G. Davids. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, IRS – Criminal Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General and the Kansas City, Mo., Police Department.
Vermont Man Convicted of Fraudulently Obtaining United States CitizenshipRead the Press Release
BURLINGTON – A Bosnian-born Burlington, Vermont man was found guilty today of obtaining his naturalized citizenship through fraud by giving false information to a U.S. official while applying for an immigration benefit and lying to gain entry into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Eugenia A.P. Cowles of the District of Vermont, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Special Agent in Charge Bruce Foucart of the HSI Boston Office and Special Agent in Charge Andrew W. Vale of the FBI’s Albany Field Office made the announcement.
Edin Sakoc, 55, of Burlington, Vermont, was convicted following an eight day jury trial on one count of obtaining naturalization contrary to law in violation of 18 U.S.C. 1425(a). The jury unanimously concluded that Sakoc had lied on his naturalization application when he denied previously lying to U.S. immigration officials to gain an immigration benefit and when he denied ever lying to obtain entry to the United States. Sakoc faces a sentence of imprisonment of up to 10 years and a $250,000 fine and denaturalization as a consequence of his conviction. He will remain on release conditions until his sentencing.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] or toll-free at 1-800-813-5863 or the HSI tip line at 1-866-DHS-2-ICE or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.The case was investigated jointly by HSI Burlington and the FBI’s Albany Division. ICE’s Human Rights Violators and War Crimes Center assisted in this investigation. Valuable assistance was provided by the Criminal Division’s Office of International Affairs and its counterpart at the Prosecutor’s Office of Bosnia and Herzegovina. The case is being prosecuted by Senior Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Acting United States Attorney Eugenia A.P. Cowles of the District of Vermont.
United States Settles False Claims Act Allegations Against Florida-Based Dermatology Practice for $3 Million; Three Whistleblowers to Collect more than $500,000Read the Press Release
Orlando, Florida - The United States has settled a lawsuit brought by three whistleblowers that alleges a central Florida based dermatology practice knowingly billed the government millions of dollars for procedures that lacked basic indicia of medical necessity and, in some cases, had been performed by unlicensed, uncredentialed, and unsupervised employees. The qui tam complaint, filed by three former employees of the clinic, alleges that the defendants – a dermatology practice and its owner – violated the False Claims Act (FCA) by knowingly submitting false claims to the government for payment.
The government announced today that it has reached a settlement with the defendant, Associates in Dermatology, and the physician who owned the practice, Dr. Michael Steppie. In reaching this settlement, the parties resolved allegations that, from January 1, 2009, until October 2013, Dr. Steppie operated a dermatology practice that had an unlicensed medical assistant performing radiation therapy without proper supervision. The whistleblowers, in many instances, alleged that the medical assistant lacked the basic knowledge to perform the tests she was performing. In addition, the allegations included that the clinic performed unnecessary destructions of skin lesions and that these destructions lacked proper documentation. Associates in Dermatology and Dr. Steppie agreed to pay the United States $3 million dollars to resolve these allegations.
"The United States Attorney's Office is committed to taking the necessary steps to protect Medicare, TRICARE, and other federal health care programs from fraud," said A. Lee Bentley, III, U.S. Attorney for the Middle District of Florida. "By bringing FCA cases such as this, we recover funds obtained through fraud and deter others from attempting similar schemes."
"This case underscores how important it is for health care providers to properly document the services they bill to Medicare," stated Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services - Office of Inspector General. "We will continue to work with our law enforcement partners to protect the integrity of federal health care programs."
This lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Katherine Brown, Amber Bradshaw, and Vanessa Santos, former employees at the clinic. Under those provisions, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. The three relators will receive more than $500,000 as part of today’s settlement.
This matter illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered more than $23.4 billion through False Claims Act cases, with more than $14.9 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was investigated by Federal Bureau of Investigation, the Defense Criminal Investigative Services, the Health and Human Services - Office of Inspector General and Office of Counsel to Inspector General, and the Defense Health Agency Program Integrity Office. It was handled by Assistant United States Attorney Jason Mehta.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The lawsuit against the defendants was filed in the U.S. District Court for the Middle District of Florida and is captioned United States ex rel. Brown et al v. Associates in Dermatology, Michael Steppie, and William Steele.
Two Sioux City Brothers Sentenced to Lengthy Prison Terms for Violent Crime SpreeRead the Press Release
Contact: Steve Young
Sioux City brothers have been sentenced to federal prison after they were convicted by a federal jury in Sioux City on August 29, 2014, following a two and one-half day jury trial.
Jamal Dean, 23, of Sioux City, was convicted of conspiracy, felon in possession of a firearm, carjacking, and two counts each of robbery, and twice brandishing a gun in furtherance of a violent crime. He was found not guilty of one count of carjacking and one count of interstate transport of a stolen vehicle. His brother, Levon Dean Jr., 25, also of Sioux City, was convicted of conspiracy, felon in possession of a firearm, and two counts each of robbery and possessing a gun in furtherance of a violent crime. He was found not guilty of both counts of carjacking and one count of interstate transport of a stolen vehicle. One count of interstate transport of a stolen vehicle was dismissed.
Evidence at trial showed the brothers conspired to rob two local drug dealers. On April 15, 2013, they traveled together from Nebraska to Iowa where they beat and robbed the first drug dealer at gunpoint inside a room at a Sioux City motel and then left with his car, methamphetamine, cash and other items. On April 24, 2013, the brothers again traveled to Iowa where they beat and robbed a second drug dealer at gunpoint inside his Sioux City home taking his car, methamphetamine, cash and other items. After both attacks the men retreated back to Nebraska.
Evidence at the sentencing hearing additionally revealed that while an Iowa arrest warrant was pending for Jamal Dean, he was a passenger in a car that was stopped by Sioux City Police Officer Kevin McCormick. Dean exited the vehicle and began firing a number of rounds at the officer, one of which struck him in the head. After this shooting, Dean fled but was captured in Texas traveling south just 70 miles from the Mexican border. Evidence at sentencing also revealed Dean had assaulted a woman and shot two other men, before shooting Officer McCormick.
Jamal Dean and Levon Dean Jr. were sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Jamal Dean was sentenced to life imprisonment. Levon Dean was sentenced to 400 months’ imprisonment, to be followed by a life term of supervised release.
There is no parole in the federal system. Both Jamal Dean and Levon Dean Jr. are being held in the United States Marshal’s custody until they can be transported to a federal prison.
Gregory Gant, Special Agent in Charge of the Kansas City Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives commended the law enforcement collaboration that this case highlights saying, "This case is a powerful example of law enforcement agencies working together to rid our neighborhoods of the most violent criminals that tear at the very fabric of our communities."
Woodbury County Sheriff David A. Drew echoed similar sentiments adding, “Once again Siouxland, in the highest traditions, has pulled together in a unified effort by police and citizens to bring these cases to resolution. Our goal is to continue this spirit of cooperation, rely upon citizen involvement and continue building upon our open relationships of mutual trust, respect and understanding.”
Kevin W. Techau, United States Attorney for the Northern District of Iowa, added, “One of the United States Department of Justice’s top priorities is helping our federal, state and local law enforcement agencies protect our nation’s communities as safe places where our citizens can live work and raise a family. Violent criminals are a threat to the law-abiding people of our communities. This case is an excellent example of the federal-state-local partnerships working today. The collaboration of all of the agencies involved was pivotal in this case and would not have been possible but for superior working relationships. My office shares great pride with our partners in successfully prosecuting the Dean brothers and bringing them to justice. It should also serve to remind others who break the law that we will continue to work to bring them to justice.”
Douglas Young, Chief of Police, Sioux City Police Department, added, “Today, the Federal Government has fulfilled its obligation to protect its citizens with the sentencing of Jamal Dean. This was a case of drugs, guns and gangs that has left a trail of victims over the past years. The successful prosecution of this case is a testament to the partnerships and relationships we have formed with our Federal, State and local agencies over the years".
The case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun crimes. It was investigated by the Sioux City Police Department, South Sioux City Police Department, Woodbury County, Iowa Sheriff Office, Dakota County, Nebraska Sheriff’s Office, The Woodbury County, Iowa County Attorney’s Office, United States Marshal’s Service, Iowa and Texas Departments of Public Safety, Iowa Department of Motor Vehicles, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-4082.
Two Sentenced in International Heroin, Cocaine Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Alexander Tovar, 26, and Miguel Valentin, 30, of Providence, have been sentenced to 5 years in federal prison for their participation in a heroin and cocaine trafficking conspiracy, that ended with the seizure of more than 486 grams of heroin and 462 grams of cocaine, announced United States Attorney Peter F. Neronha and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) for New England.
At sentencing today, U.S. District Court Chief Judge William E. Smith also ordered Tovar to serve 3 years supervised release upon completion of his prison term. Tovar pleaded guilty on September 12, 2014, to one count each of conspiracy to possess with the intent to distribute cocaine and heroin, possession with the intent to distribute heroin, and possession with the intent to distribute cocaine.
On November 14, 2014, U.S. District Court Chief Judge William E. Smith sentenced Miguel Valentin to 5 years in federal prison to be followed by 3 years supervised release. He pleaded guilty on July 31, 2014, to one count each of conspiracy to possess with the intent to distribute cocaine and heroin, possession with the intent to distribute heroin, and possession with the intent to distribute cocaine.
According to court documents and information presented to the court, on December 21, 2013, a United States Customs and Border Protection (CBP) agent inspecting packages arriving in the United States from Venezuela discovered two similar packages, one containing 486.4 grams of heroin and the other containing 462.2 grams of cocaine. The packages were addressed for delivery to separate Boston area residences. CBP shipped both packages to Boston where they were turned over to the Criminal Investigations Division of Homeland Security.
On December 26, 2013, following two failed attempts by HSI Task Force undercover agents and Massachusetts State Police to deliver the package containing the heroin to the addressee, the package was returned to the shipping company office. While attempting to deliver the package, law enforcement spotted a vehicle with Rhode Island license plates and the two defendants. During the second attempted delivery, Valentin approached the delivery truck attempting to accept delivery of the package. He was refused delivery because he was not the addressee and could not prove he was authorized to accept delivery. Valentin then left the area in the vehicle with Rhode Island plates, being driven by Tovar.
According to information presented to the court, later the same day, the delivery company notified law enforcement that a person purporting to be the addressee called the delivery company and authorized release of his package to Miguel Valentin. The shipping company also received a telephone call requesting that the second package be released to a female whose name was provided to the shipping company. The next morning, Valentin arrived in a vehicle which also contained the female authorized to receive the package. Valentin went inside and accepted delivery from undercover agents who were posing as shipping company employees. Valentin was detained as he left the building.
Subsequent to Valentin’s arrest, HSI agents arranged to have the packages forwarded to Alexander Tovar. Tovar was observed by investigators taking receipt of the packages in Providence and was arrested.
The defendants have been detained in federal custody since their arrest.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Two Men Indicted for Burglarizing Sand Point Post OfficeRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen Loeffler announced today that an indictment had been returned charging two men with burglarizing the post office in Sand Point, Alaska.
Sheldon Wilson Shuravloff, 21, and Keith Lee Wilson Jr., 18, both of Sand Point Alaska are named in both counts of the two-count indictment. The first count charges the men with conspiring to burglarize the post office in late December 2014. The second count charges both with forcibly breaking into the post office with the intent to commit a larceny or other crime once inside. The indictment stems from a break in that occurred at the post office on or about December 28 of last year. The burglary resulted in damage to the post office itself and to some postal equipment kept inside. It also forced the post office to close for a week, thereby preventing Sand Point residents from receiving their mail.
Assistant United States Attorney Stephanie Courter, who presented the case to the grand jury, indicated both Shuravloff and Wilson face up to five years in prison and a fine of up to $250,000 on each of the two charges. The law also allows a court, upon a conviction, to order the men to pay restitution in the amount of the damage done to the post office as a result of their actions. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
The men will be arraigned in federal court in the coming days. The United States Postal Inspection Service, the Sand Point Police Department, and the Alaska State Troopers conducted the investigation leading to the indictment in this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Men Charged with Sex TraffickingRead the Press Release
CINCINNATI – A federal grand jury has charged Anthony Lee Brown, 48, of Cincinnati, Ohio and Christopher Combs, 25, of Cincinnati, Ohio, with sex trafficking in an indictment returned in Cincinnati.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John Barrios, Federal Bureau of Investigation (FBI) Acting Special Agent in Charge - Cincinnati Division, and Jeffrey Blackwell, Cincinnati Chief of Police, announced the indictment returned yesterday.
The indictment alleges that beginning on or about October 7, 2014 through November 18, 2014, Brown and Combs used a facility of interstate commerce to coerce and entice individuals to engage in sexual activity. The defendants allegedly transported individuals from Ohio to Kentucky and elsewhere to engage in prostitution.
Coercion and enticement is a crime that is punishable by up to 20 years in prison. Transportation of an individual to engage is prostitution is a crime punishable by up to 10 years imprisonment.
Brown and Combs were arrested by Officers assigned to the Cincinnati Police Department – Vice Unit and Special Agents with the FBI on January 22.
U.S. Attorney Stewart commended the investigation of this case by the FBI, Cincinnati Police Department, and Assistant U.S. Attorney Christy Muncy, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Turkish Man Sentenced for Smuggling Adulturated and Misbranded Cancer DrugsRead the Press Release
St. Louis, MO – SABAHADDIN AKMAN, the owner and manager of a Turkish drug wholesaler, was sentenced to 30 months imprisonment and fined $150,000 for smuggling misbranded and adulterated cancer treatment drugs into the United States, including multiple shipments of Altuzan® (the Turkish version of Avastin®) that he sent from Turkey to Chesterfield, Missouri. Akman also paid a forfeiture of $150,000 before sentencing.
According to Akman’s plea agreement, Akman’s company used shipping labels that concealed the illegal nature of the prescription drug shipments, including customs declarations falsely describing the contents as "gifts" or "documents" or "product sample" with no or low declared monetary values. Akman’s company also ensured that large drug shipments were broken into several smaller packages to reduce the likelihood of seizures by U.S. Customs authorities and the corresponding loss of expensive drug shipments. Akman admitted that he shipped some prescription cancer treatment drugs that required constant cold temperatures to maintain their stability and integrity to the United States with no effort or ineffective efforts to maintain temperature protection for the drug shipments. Akman further admitted that some chemotherapy drugs he shipped to the United States had different lot numbers on the exterior packaging than the lot numbers on the drug vials inside the packages.
Further, Akman admitted in his plea agreement that his company sold Altuzan® to Richard Taylor, a United Kingdom drug wholesaler. The U.S. Food and Drug Administration’s ("FDA") Office of Criminal Investigations ("FDA-OCI") previously seized Altuzan® from various U.S. physicians and customers of Taylor in 2012, and ultimately determined that this Altuzan® had no active drug ingredients inside the drug vials and contained mold and water instead of medicine. FDA issued several public safety alerts about these events. FDA-OCI’s ongoing investigation has led to a number of related prosecutions in this District, including Dr. Abid Nisar, Sandra Behe, James Newcomb, Richard Taylor, Dr. Erick Falconer and Greg Martin, as well as prosecutions in the Southern District of California.
"Patients receiving cancer treatment drugs should be assured that the medications meet FDA’s standards for safety and quality, said Catherine Hermsen, Special Agent in Charge, FDA Kansas City Field Office. "OCI will continue its vigilance over the prescription drug supply chain to ensure that the drugs reaching patients comply with federal law, and that those who attempt to circumvent the agency’s oversight will be brought to justice."
This case was investigated by FDA’s Office of Criminal Investigations, with assistance from the United States Marshal’s Service; the United States Attorney’s Office for the District of Puerto Rico; the Office of Inspector General for the U.S. Department of Health and Human Services; the Johnson County, Kansas Sheriff’s Office Criminalistics Laboratory; Europol; the Bonn prosecutor in Germany (Staatsanwaltschaft); the Federal Criminal Police of Germany (Bundeskriminalamt, BKA); the Dusseldorf Police; the German State Criminal Police (Landeskriminalamt, LKA); the U.S. Department of State’s Diplomatic Security Service; the U.S. Consulate General’s Overseas Criminal Investigations Branch in Istanbul, Turkey and the Drug Enforcement Administration.
The case was prosecuted by the Health Care Fraud Unit of the U.S. Attorney’s Office for the Eastern District of Missouri.
Three Perry County Residents Plead Guilty to Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn January 22, 2015, Brant A. Sizemore, 38, and Clinton Waters, 37, both of DuQuoin, and Jamey A. Carson, 36, of Pinckneyville, entered guilty pleas to a one-count indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment alleges that the offense occurred between 2012 and September 2014, in Perry, Jackson, Randolph, Williamson, and Franklin Counties. Evidence at the plea hearings established that Sizemore, Waters, and Carson were involved with each other and with others in the manufacture of methamphetamine. They are all being held without bond pending May 22, 2015, sentencing hearings.
The offense carries a penalty of a term in federal prison of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Texas Man Pleads Guilty to Stealing $930,000 from St. Joseph EmployerRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Weatherford, Texas man has pleaded guilty in federal court to a mail fraud scheme in which he embezzled more than $930,000 from Herzog Contracting Corporation in St. Joseph, Mo.
Daniel Reif, 48, of Weatherford, Texas, pleaded guilty before U.S. District Judge Beth Phillips on Thursday, Jan. 22, 2015, to one count of mail fraud and one count of filing a false income tax return.
By pleading guilty, Reif admitted that he engaged in a scheme to defraud Herzog from January 2006 through Aug. 26, 2011. The government’s evidence establishes the amount embezzled by Reif totaled at least $931,256.
Herzog, which constructs railroads, highways, bridges, and airports, has a regional office in Irving, Texas. Reif began working for Herzog in the Irving office in August 2005. Reif was the manager of signals for Herzog and responsible for procuring materials and services from vendors in order to fulfill the needs of existing jobs; he was also responsible for oversight of the installation and performance of those services and materials. Reif was authorized to approve payments to vendors under his supervision and responsibility.
Reif founded his own company, Railway Signal Solutions, LLC (RSS), in February 2005. Reif began ordering project materials and services from supply vendors through RSS, then re-selling those products and services to Herzog at inflated prices. The RSS invoices made it appear as though the materials and services were being provided directly by RSS, an ostensibly independent supply vendor.
Reif, on behalf of RSS, paid the original, true vendors with a personal credit card or cashier’s check. Reif then, through RSS, invoiced Herzog for a higher price. The difference between the true price and Reif’s inflated price varied from 10 percent to over 100 percent. After RSS invoiced Herzog, Reif actually authorized payment of the inflated invoices himself.
Over the course of Reif’s scheme, RSS invoiced Herzog a total amount of at least $3,883,306, and Herzog paid RSS a total of at least $3,657,896.
Today’s plea agreement cites one instance of a $292,241 check from Herzog made payable to RSS that was mailed on March 10, 2010. The check was sent as payment for two invoices, one of which was sent by RSS to Herzog for a signal material package in the amount of $246,856. Reif, through his company RSS, had paid $152,686 for this same part, thus marking up the part by $94,170 and defrauding Herzog that same amount.
Reif also admitted that he filed a false federal income tax return on April 19, 2009, for the year 2008. According to the plea agreement, Reif claimed $990,159 in business expenses, although $498,301 of his business expenses had already been reimbursed by Herzog, his employer. The return materially understated his taxable income, resulting in a tax loss to the government of $192,230.
Under the terms of the plea agreement, Reig will be sentenced to 36 to 38 months in federal prison without parole and must pay restitution in an amount to be determined by the court. Reif must forfeit to the government $105,000 seized from his TD Ameritrade account and a 2010 Tige boat and trailer; Reif also must make a $225,000 payment on or before the date of sentencing. 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 FBI and IRS-Criminal Investigation.
Tennesse Business Owner Sentenced to 10 Years for $3.5 Million Cargo Theft SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Memphis, Tenn., business owner was sentenced in federal court today for his role in a cargo theft scheme that included a theft in West Plains, Mo.
Earl Stanley Nunn, 60, of Memphis, was sentenced by U.S. District Judge Gary A. Fenner to 10 years in federal prison without parole, which is the maximum sentence for the offense. The court also ordered Nunn to pay $3,514,521 in restitution.
On July 14, 2014, Nunn pleaded guilty to theft of an interstate shipment. Nunn, the owner of Nu World Trucking, LLC, was the leader of a cargo theft ring that used the resources of Nu World Trucking to steal cargo in various states. They did so by “bob-tailing” (meaning they traveled in a road tractor truck, without a semi-trailer attached) through truck stops and service stations located on or near interstate highways, looking for semi-trailers that had been left parked and unattended, and were not coupled to road tractors. When they located a semi-trailer that appeared to be unattended, they would steal the semi-trailer and the goods it contained by coupling their road tractor truck to it and driving off. After having stolen a semi-trailer and its contents, they usually transported the stolen goods to the Chicago, Ill., and Detroit, Mich., areas to be “fenced” or sold.
Co-conspirators committed thefts in various states, including Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Missouri, Nebraska, Ohio, Tennessee, Texas, and Virginia.
Nunn’s co-conspirators included his nephew, Michael Lee Sherley, 50, of Memphis, his son, Roderick Nunn (who pleaded guilty in a related case in the Western District of Michigan) and others. Sherley was sentenced on Sept. 18, 2014, to four years and six months in federal prison without parole. (The sentence includes a 33-month term for his conviction for theft of an interstate shipment, plus a 21-month term for the revocation of his supervised release in a prior unrelated federal conviction in the Western District of Tennessee.)
The specific charge to which both Nunn and Sherley pleaded guilty involves a theft that occurred on May 11, 2013, at the Snappy Mart Truck Stop in West Plains. Nunn and Sherley stole a 2000 Wabash trailer (valued at $7,500), which contained a load of Green Giant canned corn (valued at $73,008). The trailer, owned by Bryant Freight, LLC, was in transit from Minnesota to a food bank in Arkansas. Nunn and Sherley admitted that they traveled through Missouri and Indiana with the stolen cargo before being apprehended in Michigan.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI’s Memphis Cargo Theft Task Force, the U.S. Marshal’s Service, the West Plains, Mo., Police Department and the Michigan State Highway Patrol.
Tax Fraud Scheme Results in Five ConvictionsRead the Press Release
PENSACOLA, FLORIDA – At the conclusion of a twelve-day trial in Pensacola before Senior United States District Judge Roger Vinson, five defendants were convicted yesterday of a federal tax fraud scheme. A federal jury convicted John David Castleberry, 64, and Teresa Haggerty, 61, both formerly of Pensacola Beach, Florida, Mark Douglas Stokes, 61, and Melinda K. Stokes, 60, of Colleyville, Texas, and Christopher Stephen Baum, 57, of Arlington, Texas, of conspiracy to file and assist in the filing of fraudulent tax returns and conspiracy to defraud the United States by making fraudulent tax refund claims and impeding the IRS in the assessment and collection of federal income taxes. Castleberry and Haggerty were also found guilty on two additional counts of aiding the filing of false federal income tax returns in which they fraudulently claimed tax refunds. Castleberry was also convicted of filing a false income tax return in his own name. Prior to the trial, Barbara Denise Stephens, 52, of Arlington, Texas, Sheila Lin Castleberry, 63, of Portland, Oregon, and Deborah Tenney, 61, of Sarasota, Florida, each pled guilty to conspiracy to file and assist in the filing of fraudulent tax returns and conspiracy to defraud the United States by making fraudulent tax refund claims and impeding the IRS in the assessment and collection of federal income taxes. The verdicts and guilty pleas were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that between 2008 and 2010, the defendants helped to prepare and file fraudulent tax returns seeking more than $9 million in refunds. The defendants perpetrated the scheme by falsely reporting to the IRS, using an IRS form, that defendants’ or their clients’ creditors had paid large amounts of interest, withheld equally large amounts of federal income taxes, and paid this money over to the IRS. As a result of the fraudulently overstated income tax withholdings, the tax returns that were filed on behalf of the defendants, or their clients, claimed large refunds to which they were not entitled. The defendants used this method in an attempt to pay off their debts with fraudulent tax refunds.
In announcing the verdicts and the guilty pleas, United States Attorney Marsh said, “I commend the Treasury Inspector General for Tax Administration and the IRS for their hard work in this case. The United States Attorney’s Office is committed to aggressively pursuing and bringing to justice those who steal tax dollars and willfully undermine the tax system.”
Special Agent in Charge James D. Robnett stated, “Tax fraud against the government takes many forms, but the most egregious is the blatant theft of government funds under the pretense of make-believe earnings and tax withholdings. The IRS will continue to vigorously enforce the tax laws and for those who think that far-fetched ideas for quick cash from the government using false information is a good idea, they should take note that there are dire consequences to be faced should they decide to follow internet myths and fallacies.”
Defendants Mark Douglas Stokes, Melinda K. Stokes, and Christopher Baum are all scheduled to be sentenced on April 15, 2015. Defendants John David Castleberry and Teresa Haggerty are scheduled for sentencing the following day. All sentences will be held before Senior United States District Judge Roger Vinson.
The case was investigated by agents of the Internal Revenue Service – Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA) Dallas Field Division. The case was prosecuted by Assistant United States Attorneys Randall J. Hensel and J. Ryan Love.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Tampa Man Charged for his Role in Stolen Identity Refund SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Demetrius Wright with four counts of theft of government funds, two counts of aggravated identity theft, and one count of conspiracy to commit aggravated identity theft and theft of government funds. If convicted, he faces a maximum penalty of ten years in federal prison for each of the theft charges, two years for each aggravated identity theft charge, and up to five years’ imprisonment for the conspiracy offense. The indictment also notifies Wright that the United States is seeking a money judgment in the amount of $165,317.00, the proceeds of the criminal conduct.
According to the indictment, between February 2012 and December 2014, Wright engaged in a conspiracy with others to file fraudulent federal income tax returns on behalf of taxpayers who had no knowledge of the scheme. As a result of the numerous fraudulently filed tax returns, the Internal Revenue Service paid a total of $165,317.00 into various bank accounts to which Wright had access.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Tampa Man Charged for His Role in Stolen Identity Refund SchemeRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Demetrius Wright with four counts of theft of government funds, two counts of aggravated identity theft, and one count of conspiracy to commit aggravated identity theft and theft of government funds. If convicted, he faces a maximum penalty of ten years in federal prison for each of the theft charges, two years for each aggravated identity theft charge, and up to five years’ imprisonment for the conspiracy offense. The indictment also notifies Wright that the United States is seeking a money judgment in the amount of $165,317.00, the proceeds of the criminal conduct.
According to the indictment, between February 2012 and December 2014, Wright engaged in a conspiracy with others to file fraudulent federal income tax returns on behalf of taxpayers who had no knowledge of the scheme. As a result of the numerous fraudulently filed tax returns, the Internal Revenue Service paid a total of $165,317.00 into various bank accounts to which Wright had access.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Jay L. Hoffer.
Springdale Man Sentenced to Five Years for Felon in Posession of Firearm ViolationRead the Press Release
Fayetteville, Arkansas – Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that James Ray King Jr., age 57, of Springdale, was sentenced today to 60 months in prison with three years of supervised release for being a felon in possession of a firearm. United States District Judge Timothy L. Brooks presided over the sentencing in the United States District Court in Fayetteville.
United States Attorney Eldridge commented “Felons in possession of firearms pose a serious threat of harm to police officers and citizens in our communities. Our office, along with local authorities, will continue to relentlessly investigate and prosecute these types of cases in order to keep communities throughout the Western District of Arkansas safe from senseless violence.”
According to court records, on March 26, 2014, officers with the Springdale Police Department were dispatched to a disturbance at Johnson Meadows Apartments in Springdale. Upon arrival, officers observed King outside of his apartment in possession of a firearm. King was taken into custody at that time, and officers determined that the firearm was stolen. At King’s residence, officers located pipes, digital scales, and numerous plastic baggies used for packaging drugs. Outside of King’s apartment, officers located 14 grams of methamphetamine in yard debris near the location where King was taken into custody. King has previously been convicted of two felony drug charges coming out of Howard County, Arkansas, and as a prior felon is prohibited from possessing firearms. The stolen firearm in King’s possession was determined to have been manufactured outside the state of Arkansas. On July 8, 2014, King pleaded guilty to one count of being a felon in possession of a firearm.
This case was investigated by the Springdale Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney David Harris prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Rosebud Woman Sentenced for Two Second Degree MurdersRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman convicted of two counts of Second Degree Murder was sentenced on January 20, 2015, by U.S. District Judge Roberto A. Lange.
Crystal Red Hawk, age 37, was sentenced to 300 months in custody, 3 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund. Restitution will also be ordered.
Red Hawk, along with co-defendants Billy Ray McCloskey and Riley McCloskey, were all indicted by a federal grand jury on February 12, 2014, for First Degree Murder, Kidnapping, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Interstate Transportation of a Stolen Motor Vehicle, and Larceny. Red Hawk pled guilty to two counts of Second Degree Murder on October 27, 2014.
The co-defendants in the case were both previously sentenced on October 27, 2014. BillyRay McCloskey, age 24 from St. Francis, South Dakota, was sentenced to two terms of life imprisonment for two counts of First Degree Murder, and a $200 special assessment to the Federal Crime Victims Fund.
Riley McCloskey, age 21 from St. Francis, was convicted of two counts of Second Degree Murder, and sentenced to 210 months in custody, 5 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
In the late evening hours of December 23, 2013, BillyRay McCloskey and Calvin Kills In Water physically fought each other at a home in St. Francis. BillyRay McCloskey knocked Kills In Water to the kitchen floor and kicked him repeatedly in the head, face, and body until Kills In Water lost consciousness. Crystal Red Hawk was present during the assault on Kills In Water. Riley McCloskey arrived at the residence after the assault, while Kills In Water was lying on the floor unconscious and bleeding. Seventy-six year old Benjamin Clifford was asleep in the living room.
The Defendants decided to remove Kills In Water from the residence. The plan was to wrap a shower curtain or blanket around Kills In Water to keep the blood from dripping on the upholstery in the car in which they intended to transport him. The car belonged to Benjamin Clifford.
BillyRay McCloskey and Riley McCloskey supported Kills In Water between them and “walked” him out to Clifford’s car. They loaded him in to the rear passenger seat of the vehicle. As they were doing so, Clifford, the owner of the vehicle, ran outside and said he would drive his own car.
Clifford drove the vehicle as they left the residence, with Crystal Red Hawk in the front passenger seat, Riley McCloskey in the driver side rear passenger seat, and BillyRay McCloskey in the center of the rear passenger seat. The plan was to drive to the community of St. Francis to a trailer house located behind a store where they could drop off Kills In Water with someone who knew him. Clifford suggested that they take Kills In Water to the hospital, but BillyRay McCloskey said no. Clifford then drove the vehicle behind the trailer house according to the original plan and honked the car horn in an effort to get someone’s attention inside the trailer. As he did so, BillyRay McCloskey reached over the back of the front seat and placed his forearm around Clifford’s neck in a sleeper hold until he lost consciousness. The vehicle was driven away from the scene and down a highway south of St. Francis, where the vehicle stopped and BillyRay McCloskey searched the front of the car until he found a screw driver. BillyRay McCloskey then turned around to face the back seat, got on his knees, and stabbed Kills In Water in the chest several times with the screw driver.
The Defendants then proceeded into Nebraska, stopping in front of a gate into a pasture in rural Cherry County. BillyRay McCloskey opened the gate and Crystal Red Hawk continued to drive the vehicle into the pasture, coming to a stop near a grove of trees. BillyRay McCloskey and the others removed both Clifford, who was unconscious but alive, and Kills In Water from the vehicle and drug their bodies from the car to the grove of trees.
After leaving the location where the bodies were dumped, BillyRay McCloskey threw the screw driver out of the front passenger side window. The Federal Bureau of Investigation (FBI) ultimately recovered a Phillips screw driver, and DNA testing of the screw driver indicated the presence of blood from both Clifford and Kills In Water.
The bodies of both Clifford and Kills In Water were located and recovered in the early morning hours of December 30, 2013. Kills In Water was found with his hands bound behind his back with a pair of pants.
Several days later, law enforcement authorities apprehended BillyRay McCloskey, who admitted he strangled Clifford until he was unconscious and also admitted to stabbing him in the chest at least 5 times with a screw driver. He also admitted that he stabbed Kills In Water at least seven times in the throat and had dumped the bodies in a remote area.
An autopsy was performed on the bodies of Clifford and Kills In Water. The autopsy report of Benjamin Clifford concluded that the cause of death was stab wounds to the left chest, with neck compression “asphyxia” as a probable contributing factor. The autopsy noted seven puncture wounds in the upper chest region.
The autopsy report of Calvin Kills In Water indicated that the cause of death was stab wound type injuries involving the head and neck area, with a likely contributing factor of blunt force trauma to the head.
This case was investigated by the FBI and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Red Hawk was immediately turned over to the custody of the U.S. Marshals Service.
Rosebud Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Kameron Jackson, age 22, was indicted on August 19, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 20, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 15, 2014, and August 7, 2014, Jackson, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to register and update his registration.
The charge is merely an accusation and Jackson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Jackson was remanded to the custody of the U.S. Marshals Service.
Registered Sex Offender Sentenced to 10 Years for Possessing Child PornographyRead the Press Release
MISSOULA – A Kalispell man was sentenced today for possessing child pornography. Darrin Evan Malley, 36, was ordered to serve 120 months in prison followed by 15 years of supervised release in connection to his October 2014 guilty plea. U.S. District Court Judge Dana L. Christensen presided over the sentencing.
Assistant U.S. Attorney Zeno Baucus told the court that law enforcement received a complaint from a concerned citizen who had viewed child pornography on the defendant’s computer. At the time, the defendant was a registered sex offender who had previously been convicted of transporting/shipping child pornography. A forensic review of the defendant’s electronic media revealed over 1,000 images and roughly 20 videos of child pornography. The defendant acknowledged that he knew it was illegal to possess child pornography.
The investigation was conducted by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Zeno Baucus.
Postal Service Employee Sentenced to Probation with Home Detention for Stealing from MailRead the Press Release
PITTSBURGH - A resident of Parker, Pa., has been sentenced in federal court to two years probation, which includes three months home detention, and a $500 fine on her conviction of theft of mail by a Postal employee, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Pamela D. Vogt, 44.
According to information presented to the court, on or about Feb. 6, 2014, Vogt, while working as a U.S. Postal Service employee, removed a $20 bill from a greeting card contained in an envelope which was addressed and intended for delivery by the U.S. Postal Service.
Assistant United States Attorney Margaret E. Picking prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Postal Service-Office of Inspector General (USPIS) for the investigation leading to the successful prosecution of Vogt.
Police Officer in Fulton, New York, Sentenced for Assaulting a Man in His CustodyRead the Press Release
Joseph Arigo, 47, a former sergeant with the Fulton Police Department in Fulton, New York, was sentenced today in federal court to 15 months in prison and three years probation for beating a handcuffed man inside the Fulton police station. In September 2014, Arigo pleaded guilty in federal court to one count of deprivation of rights under color of law.
According to court documents filed in connection with his guilty plea, Arigo was sitting at the sergeant’s desk on June 28, 2014, when a handcuffed man, G.B., was brought into the police station. G.B. was yelling, but was not physically threatening any officers or himself. Arigo pulled the video camera out of the wall to stop it from recording, walked into the room where G.B. was, shoved his head into the bench and punched him in the head multiple times. G.B. suffered cuts and bruising, lost consciousness and required seven stitches. After the incident, Arigo lied to his supervisors and in two official reports in an attempt to conceal his actions.
This case was investigated by the Syracuse Resident Agency of the Albany Division of the FBI and was prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Phoenix Man Sentenced to 327 Months in Federal Prison on Federal Child Pornography ConvictionsRead the Press Release
LUBBOCK, Texas — Gregory James Flohr, 54, a former resident of Phoenix, Arizona, was sentenced today by U.S. District Judge Sam R. Cummings to 327 months in federal prison, following his guilty plea in August 2014 to one count of transportation of child pornography and one count of possession of child pornography. Today’s announcement was made by John Parker, Acting U.S. Attorney for the Northern District of Texas.
Flohr has been in custody since his arrest last summer on a related federal criminal complaint.
According to the factual resume filed in the case, when Flohr traveled from Arizona to Texas, he intentionally transported videos depicting a prepubescent female minor engaged in sexually explicit conduct. In addition, on the evening of July 2, 2014, Flohr knowingly possessed a Samsung cell phone that contained a child pornography video that had been transported from Arizona.
According to the complaint filed in the case, the investigation began on July 2, 2014, after Flohr entered a T-Mobile store in Lubbock, accompanied by “Jane Doe,” a female minor under age 12. Flohr purchased a new cell phone for himself and requested that the T-Mobile staff transfer data from his existing cell phone onto the newly purchased cell phone. This process involved Flohr telling the T-Mobile employee his Google Gmail account and password to facilitate the data transfer. During the data transfer, the employee noticed several images and videos of Flohr engaged in sexual contact with Jane Doe. After Flohr left the store, T-Mobile contacted the Lubbock Police Department to report the incident.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Lubbock Police Department Internet Crimes Against Children (ICAC) Task Force, the Hockley County Sheriff’s Office, the Phoenix Police Department, Phoenix, Arizona, and the FBI, investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Palm Beach County Resident Pleads Guilty under the Espionage Act and Computer Fraud and Abuse Act for Accessing and Removing Classified Information from Military ComputersRead the Press Release
West Palm Beach resident pled guilty to willful retention of classified national defense information pursuant to the Espionage Act, one count of computer intrusion pursuant to the Computer Fraud and Abuse Act, and one count of conspiracy to commit naturalization fraud, while employed as a computer systems administrator at a U.S. Military installation in Honduras.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force, made the announcement.
Christopher R. Glenn, 34, gained unauthorized access to classified computer files containing national defense information that belonged to the Department of Defense and U.S. Southern Command’s Joint Task Force Bravo in Soto Cano Air Base, Honduras. Once Glenn accessed those files, he copied classified information stored under the Joint Task Force Commander’s account, which information he retained.
Glenn also conspired with his wife, Khadraa A. Glenn, 28, to commit naturalization fraud for her benefit by fabricating fraudulent documents and submitting false statements and the documents to the U.S. Citizenship and Immigration Services (USCIS). Khadraa A. Glenn previously pled guilty to naturalization fraud conspiracy and was sentenced on October 7, 2014.
“Obtaining national defense information when you are not entitled to it is a serious threat to our national security,” said U.S. Attorney Wifredo Ferrer. “In committing this crime, Christopher Glenn abused his position of trust. Violations of the espionage act and computer intrusion are unacceptable and we will continue to investigate and seek to hold accountable those who engage in it.”
“Christopher Glenn accessed, copied and retained classified information that belonged to the Department of Defense and the U.S. Southern Command’s Joint Task Force, without authorization,” said Assistant Attorney General Carlin. “Systems administrators occupy a place of unique trust in an organization due to their extensive access to the cyber systems they maintain. With today’s plea, Mr. Glenn is being held accountable for his violation of that trust.”
“The Cold War may be over, but espionage, spies trying to steal our nation’s most valuable secrets are still at it,” said George L. Piro, Special Agent in Charge, FBI Miami. “More than ever, the FBI remains vigilant to protect critical national secrets and assets. If you are aware of this type of activity, report it immediately to the FBI.”
Glenn is scheduled to be sentenced by U.S. District Judge Kenneth A. Marra, on April 17, 2015, at 2:00 p.m. He faces a possible statutory maximum sentence of up to 10 years in prison on each of counts 1 and 5, and up to 5 years in prison on count 10; 3 years of supervised release and a $250,000 fine.
Mr. Ferrer commended the investigative efforts of the FBI, U.S. Army’s 470th Military Intelligence Brigade, U.S. Army’s Criminal Investigations Division, the U.S. Southern Command (SOUTHCOM), USCIS, Internal Revenue Service, Department of Homeland Security and the South Florida Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorney Ricardo Del Toro and Trial Attorney Christian Ford of the Counterespionage Section of the Department of Justice’s National Security Division.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Pleads Guilty Under the Espionage Act and Computer Fraud and Abuse Act for Accessing and Removing Classified Information from Military ComputersRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge George Piro for the FBI’s Miami Field Office and the members of the South Florida Joint Terrorism Task Force announced that a West Palm Beach resident pleaded guilty to willful retention of classified national defense information pursuant to the Espionage Act, one count of computer intrusion pursuant to the Computer Fraud and Abuse Act, and one count of conspiracy to commit naturalization fraud, while employed as a computer systems administrator at a U.S. Military installation in Honduras.
Christopher R. Glenn, 34, gained unauthorized access to classified computer files containing national defense information that belonged to the Department of Defense and U.S. Southern Command’s Joint Task Force Bravo in Soto Cano Air Base, Honduras. Once Glenn accessed those files, he copied classified information stored under the Joint Task Force Commander’s account, which information he retained.
Glenn also conspired with his wife, Khadraa A. Glenn, 28, to commit naturalization fraud for her benefit by fabricating fraudulent documents and submitting false statements and the documents to the U.S. Citizenship and Immigration Services (USCIS). Khadraa A. Glenn previously pleaded guilty to naturalization fraud conspiracy and was sentenced on Oct. 7, 2014.
“Christopher Glenn accessed, copied and retained classified information that belonged to the Department of Defense and the U.S. Southern Command’s Joint Task Force, without authorization,” said Assistant Attorney General Carlin. “Systems administrators occupy a place of unique trust in an organization due to their extensive access to the cyber systems they maintain. With today’s plea, Mr. Glenn is being held accountable for his violation of that trust.”
“Obtaining national defense information when you are not entitled to it is a serious threat to our national security,” said U.S. Attorney Ferrer. “In committing this crime, Christopher Glenn abused his position of trust. Violations of the espionage act and computer intrusion are unacceptable and we will continue to investigate and seek to hold accountable those who engage in it.”
“The Cold War may be over, but espionage, spies trying to steal our nation’s most valuable secrets are still at it,” said Special Agent in Charge Piro. “More than ever, the FBI remains vigilant to protect critical national secrets and assets. If you are aware of this type of activity, report it immediately to the FBI.”
Glenn is scheduled to be sentenced by U.S. District Judge Kenneth A. Marra, on April 17, 2015.
Assistant Attorney General Carlin would like to thank the investigative efforts of the FBI, U.S. Army’s 470th Military Intelligence Brigade, U.S. Army’s Criminal Investigations Division, the U.S. Southern Command (SOUTHCOM), USCIS, Internal Revenue Service, Department of Homeland Security and the South Florida Joint Terrorism Task Force. The case is being prosecuted by Trial Attorney Christian Ford of the Counterespionage Section of the Department of Justice’s National Security Division and Assistant U.S. Attorney Ricardo Del Toro of the Southern District of Florida.
Pair Sentenced to Federal Prison Terms for Swindling $30 Million from More Than 100 Investors in Purported Telecom BusinessRead the Press Release
CHICAGO " Two defendants were sentenced today to federal prison terms for an investment fraud scheme in which they swindled more than $30 million from more than 100 investors in a purported voice-over-internet telecommunications business. One defendant, GAIL HOWARD, was sentenced to seven years in prison, while her co-defendant, JAMES JEDYNAK, was sentenced to 6½ years in prison. Together, Howard and Jedynak misappropriated more than $6 million of investors’ funds for their own benefit.
Howard, 64, of Springdale, Ark., and formerly of California, pleaded guilty to wire fraud, while Jedynak, 49, of Hemlock, Mich., and formerly of north suburban Northfield, was convicted of wire fraud at a trial in June 2013.
Both defendants were ordered to pay $30.27 million in restitution by U.S. District Judge Robert M. Dow, Jr., who imposed the sentences today in Federal Court in Chicago. Jedynak and Howard were each ordered to start serving their sentences on April 28.
According to court records, Howard was president and chief executive officer, and Jedynak was in charge of recruiting investors, at Unified Worldwide Transport, LLC (UWT), a Santa Monica, Calif., company that purported to be in the business of routing voice-over-internet protocol (VOIP) telecommunications traffic. UWT sold equity shares to investors through private placement offerings, and Jedynak was responsible for recruiting individuals and entities, including some from the Chicago area, to invest in the business.
Between 2003 and 2007, Howard and Jedynak raised more than $30 million through the fraudulent offer and sale of investment interests and loans to UWT. They falsely represented that investments and loans would be used to acquire telecommunications routes, build network infrastructure, provide working capital, repay debt, and purchase licenses and equipment. Instead, they misappropriated approximately $6.2 million to purchase luxury goods and services, such as a swimming pool, a boat, jewelry, and plastic surgery, to pay for home improvements, to make payments to friends and relatives, to make personal investments, to purchase real estate, and to fund outside business interests.
To facilitate the fraud scheme, the defendants falsely represented that UWT had a contract with Illinois-based Caterpillar Corp., which they claimed owed UWT a lot of money, when in fact there was no contract and no money owed.
Jedynak falsely represented to investors that he would receive no compensation from UWT until investors received all of their principal back. Howard told investors that she had a law degree and a master"s degree in business administration and had worked as a state prosecutor in Arkansas, none of which was true.
The sentences were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois Department of Securities assisted the investigation conducted by the FBI.
The government was represented by Assistant U.S. Attorneys Rachel Cannon, Ryan Hedges, and Derek Owens.
Northern Colorado Heroin Network Dismantled by the FBI and the Longmont Police DepartmentRead the Press Release
FEDERAL CHARGES INCLUDE DISTRIBUTION OF HEROIN RESULTING IN DEATH
DENVER – Longmont Police Officers and FBI special agents today dismantled a heroin distribution network centered in Northern Colorado, the U.S. Attorney’s Office, FBI and Longmont Police Department announced today. Ten defendants were arrested based on an either a federal indictment returned by a federal grand jury in Denver or a state arrest warrant. One of the four federal defendants, Brice Alday, of Longmont, appeared in U.S. District Court in Denver this afternoon, where he was advised of his rights and the charges pending against him. Four defendants remain at large, and arrests are ongoing.
In September 2014, the Longmont Police Department’s Special Enforcement Unit (SEU), and the Federal Bureau of Investigations (FBI) initiated a joint investigation into a heroin use and distribution ring working primarily in Longmont, but with connections to other communities in Northern Colorado. As a result of this investigation, four persons were indicted on federal charges related to heroin distribution – including an allegation that the distribution resulted in death. In addition to the federal defendants, 10 others were named in state charges for possession and/or distribution of a schedule I controlled substance.
The federal indictment includes four federal defendants. Alday and his three co-defendant face four counts, including Conspiracy to distribute and possess with the intent to distribute heroin – the use of which resulted in death. All four defendants also face distribution of heroin resulting in death. Alday and two others also face use of communication facility, a telephone, in furtherance of the drug trafficking crime.
The Longmont Police Department is still looking for many of the suspects and are requesting the assistance from the public. Anyone with information on this crime, or any other crime, is asked to call the Longmont Police Department at 303-651-8501 or Northern Colorado Crime Stoppers at 1-800-222-TIPS (8477). Crime Stoppers provides a way for members of the community to assist local law enforcement agencies in the fight against crime. Crime Stoppers knows "someone other than the criminal has information that can help solve a crime". Crime Stoppers offers ANONYMITY to people who provide information about crimes AND pays rewards when the information supplied leads to an arrest. People providing information to Northern Colorado Crime Stoppers that lead to the arrest and filing of charges for this crime may receive up to a $2,000.00 reward and remain anonymous. Tips can also be provided to the Northern Colorado Crime Stoppers via the internet at www.nococrimestoppers.com or by Text to: 244637 (crimes) Keyword: NOCO (followed by your tip).
“Tragically, heroin use has climbed dramatically in Colorado, which has led to an epidemic of heroin overdose deaths,” said U.S. Attorney John Walsh. “Thanks to the FBI and the Longmont Police Department, a Northern Colorado heroin distribution network that was responsible for the death of an individual has been dismantled. But our work in this area is far from done.”
“These arrests highlight a commitment by federal and local agencies to address criminal enterprises responsible for a surge in the trafficking of heroin and resulting overdoses that take lives and destroy families,” said FBI Denver Special Agent in Charge Thomas Ravenelle. “We extend our gratitude to the Longmont Police Department and United States Attorney’s Office for working together and using innovative strategies to dismantle groups that threaten the well-being of our communities.”
The federal defendants face a variety of drug distribution related charges. All four also face the charge of Conspiracy to distribute and possess with intent to distribute heroin – the use of which resulted in death. The four also face distribution of heroin resulting in death. Each count carries a penalty of not less than 20 years, and up to life in federal prison, and up to a $1,000,000 fine. If convicted of use of a communication facility, each of the three defendants who were indicted on that charge face not more than 4 years in prison, and up to a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation, Fort Collins Resident Agency and the Longmont Police Department. In addition, the Boulder District Attorney’s Office is working closely with law enforcement on the prosecution of the state defendants.
The federal defendants are being prosecuted by Assistant U.S. Attorney Bradley Giles.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Norridgewock Man Sentenced to 65 Years for Child Exploitation and PornographyRead the Press Release
Patrik Arsenault, 28, was sentenced in U.S. District Court by Judge John A. Woodcock Jr. to 65 years in prison, to be followed by a lifetime of supervised release for sexual exploitation of a minor and transportation, receipt and possession of child pornography U.S. Attorney Thomas E. Delahanty II announced. Arsenault pleaded guilty on July 8, 2014.
According to court records, in June and July of 2013, the defendant, a former special education teacher, sexually abused three minors and recorded images and videos the abuse. The defendant then sent recordings of the abuse, as well as other images of child pornography, to several e-mail trading partners. The defendant also received images of child pornography from his trading partners. On Aug. 21, 2013, agents seized a hard drive during the execution of a search warrant at the defendant’s residence. A forensic examination revealed videos and images of the defendant’s abuse of the minors and over 7,500 images and 250 videos depicting child pornography.
“Despicable crimes like this rob our children of their innocence,” said Special Agent in Charge Bruce Foucart of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Boston. “We entrust teachers to serve as role models for our children and safeguard their welfare. As this sentence makes clear, when that trust is violated, there will be severe consequences. This case should also serve as a stern warning to those who mistakenly believe cyberspace affords them anonymity on the Internet to sexually exploit children with impunity.”
“It was his hard work and diligence in identifying the defendant after his activity had been discovered that brought him to justice,” said U.S. Attorney Delahanty on the work of HSI Special Agent Anthony Castellanos. “These cases are very difficult because of the subject matter, but also because of the necessity to link the defendant to the disturbing images and on-line conduct. Special Agent Castellanos’s continued persistence has limited the exposure of the minors to further exploitation. People who engage in this conduct should expect to receive very lengthy sentences.”
The investigation was conducted jointly by HSI, the Maine State Police and the Computer Crimes Unit of the Maine State Police. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Orleans Couple Indicted for Violations of the Federal Controlled Substances Act and Money LaunderingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GROSS WILLIAMS, age 49, and his wife, KATHLEEN WILLIAMS, age 46, both of New Orleans, were charged yesterday in a five-count Indictment for violations of the Federal Controlled Substances Act, the Federal Gun Control Act, conspiracy to launder money and obstruction of justice.
According to the Indictment, GROSS WILLIAMS possessed with the intent to distribute and distributed one kilogram or more of heroin and five kilograms or more of cocaine. GROSS WILLIAMS is also alleged to have possessed a firearm in furtherance of those drug trafficking crimes and to have illegally possessed a weapon after a felony conviction. KATHLEEN WILLIAMS and GROSS WILLIAMS were also charged with conspiring to launder the proceeds of GROSS WILLIAMS’s drug trafficking. KATHELEEN WILLIAMS was additionally charged with obstruction of justice for destroying a cellular telephone.
If convicted, GROSS WILLIAMS faces a minimum term of imprisonment of 15 years to a maximum of life, a fine of up to $10,000,000 and 5 years of supervised release following any term of imprisonment.
If convicted, KATHLEEN WILLIAMS faces a maximum term of imprisonment of 40 years, a fine of up to $500,000, and 3 years of supervised release following any term of imprisonment.
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, the New Orleans Police Department, and Louisiana Probation and Parole in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Monahans Man Pleads Guilty in Oil Theft SchemeRead the Press Release
In Midland, 33-year-old David Wayne Schroeder of Monahans, TX, faces up to ten years in federal prison for theft of approximately $58,000 worth of oil announced Acting United States Attorney Richard L. Durbin, Jr., and FBI Special Agent in Charge Douglas E. Lindquist, El Paso Division.
Appearing yesterday before United States Magistrate Judge David Counts, Schroeder pleaded guilty to three counts of theft from an interstate shipment. By pleading guilty, Schroeder admitted that on three separate occasions in November and December 2013, Schroeder stole oil from different Permian Basin companies. On November 13, 2013, Schroeder admittedly stole a truckload of oil from Williams Oil Company in Crane County and delivered it to Itero Energy’s site in Monahans for payment. On November 27, 2013, Schroeder admittedly stole a truckload of oil from Devon Energy in Crane County and delivered it to Itero for payment. The estimated value of each load of stolen oil is $10,000.
The final incident, according to court records, occurred during the evening hours of November 30, 2013, and into the early morning hours of December 1, 2013, when Schroeder admittedly used a stolen vacuum truck and trailer to steal five tankerloads (approximately 520 barrels) of oil from a Whiting Petroleum lease in Ward County. Schroeder delivered the stolen oil to Itero for payment. A Ward County Sheriff’s deputy dispatched to investigate a possible stolen vacuum truck on Itero’s site witnessed Schroeder off-loading oil and attempted to question him. After a brief altercation with the deputy, Schroeder managed to flee the scene in a stolen vehicle, but was apprehended later that morning in Monahans. Investigators discovered Schroeder had left four tickets each documenting a separate tanker load delivered to Itero’s site. In the normal course of business, the tickets would have justified and likely led to Itero’s payment for the oil deliveries.
Schroeder remains in federal custody pending sentencing scheduled for April 10, 2015, in Midland before U.S. District Judge Robert A. Junell.
This investigation was conducted by the FBI’s Permian Basin Oilfield Theft Task Force, which consists of federal agents as well as law enforcement officers from the Midland County Sheriff’s Office and the Andrews County Sheriff’s Office. Assistant United States Attorney John Klassen is prosecuting this case on behalf of the Government.
Mobridge Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mobridge, South Dakota, man charged with Assaulting, Resisting, and Impeding a Federal Officer pled guilty to and was sentenced on January 20, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Ed Charles LeClair, IV, age 22, was sentenced to 6 months in custody, 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
The conviction stems from an incident that took place in Timber Lake at the Days of 1910 City Celebration on or about July 27, 2014, when LeClair forcibly assaulted a Dewey County Deputy Sheriff. At the time of the assault, the Deputy Sheriff was assisting federal law enforcement officers in an arrest of the Defendant at the beer tent.
The investigation was conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson. LeClair was remanded to the custody of the U.S. Marshals Service.
Missouri Woman Pleads Guilty in Kansas in Multimillion-Dollar Designer Drug CaseRead the Press Release
KANSAS CITY, KAN. – A Missouri woman pleaded guilty Friday to being part of a conspiracy to operate an Olathe-based business that sold at least $16 million worth of synthetic forms of marijuana and other street drugs, U.S. Attorney Barry Grissom said.
Cindy McRoberts, 49, Lees Summit, Mo., pleaded guilty in U.S. District Court in Kansas City, Kan., to one count of conspiracy to distribute controlled substances and analogues of controlled substances.
According to court records, McRoberts was an employee who worked for co-defendants Tracy Picanso and Roy Ehrett, who owned Olathe-based businesses that produced and sold dangerous controlled substances and controlled substance analogues of THC (the active ingredient in marijuana) and methcathinones (stimulants). They used the Internet to market their products under exotic names including Pump It, Head Trip, Black Arts, Grave Digger, Voodoo Doll and Lights Out. Some of the drugs were manufactured in buckets on warehouse floors.
McRoberts worked as the office manager at the office in Olathe and at warehouses in Kansas City, Mo. She answered phones, handled online orders, leased post office boxes, picked up shipments of illegal substances and chemicals, and transported illegal substances and chemicals between warehouses.
She is set for sentencing April 27. She faces a maximum penalty of 20 years and a fine up to $1 million. Co-defendants Picanso and Ehrett are set for sentencing April 13.
Grissom commended the Drug Enforcement Administration, the Food and Drug Administration – Office of Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, Customs and Border Protection, the FBI, the Overland Park Police Department, the Johnson County Sheriff’s Office, the Olathe Police Department, the St. Joseph Police Department and the Buchanan County Drug Strike Force and Assistant U.S. Attorney Tanya Treadway for her work on the case.
Michigan Man Sentenced to Prison for Home Mortgage Fraud ConspiracyRead the Press Release
A Northville, Michigan, resident was sentenced today in U.S. District Court for the Eastern District of Michigan to serve 15 months in prison, five years of supervised released and was ordered to pay $394,000 in restitution to five defrauded banks for committing bank fraud, the Department of Justice announced.
Wasseem Shamoun pleaded guilty on Aug. 12, 2014, to conspiracy to commit bank fraud. The superseding indictment alleged that from approximately January 2006 to December 2008, Shamoun and his six other co-defendants conspired to defraud financial lending institutions to obtain residential mortgage loans by providing fraudulent information on loan applications. According to court documents, the defendants devised a scheme to purchase single-family homes for approximately $5,000 to $40,000 each, and then recruited straw buyers to submit fraudulent loan applications for home mortgages substantially above the original purchase price. The loan applications falsified the straw buyers’ assets, income and down payment, among other things. The straw buyers were paid fees for their participation, which were sometimes falsely disguised as “landscaping” or “construction” fees. The conspirators made a substantial profit and paid themselves commissions on the sales. Every home purchased and sold as part of the scheme went into foreclosure. According to court documents, Shamoun’s role in the conspiracy was to sell properties to the straw buyers. He was directly responsible for a criminal loss of approximately $394,000.
In addition to the seven individuals indicted in the case, two others connected to the scheme have pleaded guilty. One individual is a straw buyer of multiple properties who received substantial fees as part of the scheme. The other individual is a mortgage broker who assisted in the preparation of the false mortgage loan applications. Both are awaiting sentencing in their cases.
This case was investigated by the FBI, IRS-Criminal Investigation and the Drug Enforcement Administration. Senior Litigation Counsel Corey Smith and Trial Attorney Mark S. McDonald of the Justice Department’s Tax Division prosecuted the case.
Michigan Company President Sentenced for Fraud and Tax EvasionRead the Press Release
A Plymouth, Michigan, resident was sentenced today in the U.S. District Court for the Eastern District of Michigan to serve 42 months in prison to be followed by one year of supervised release for committing wire fraud and tax evasion, the Justice Department and the Internal Revenue Service (IRS) announced.
According to court documents, Michael Stover was the president of Omni Facility Services (Omni), a janitorial company located in Southfield, Michigan. As part of his responsibilities as president, Stover approved and paid subcontractors of Omni. Stover incorporated a fictitious subcontractor called Envirovac Inc., and from 2004 through 2010, he created fictitious invoices from Envirovac that billed Omni for work that was never performed. Stover then approved payment of those invoices on Omni’s behalf. The payments to Envirovac actually went to Stover. Over the course of this scheme, Stover embezzled approximately $2.178 million from Omni. On his federal income tax return for 2007, Stover failed to report the income that he had embezzled from Omni.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorneys Yael T. Epstein and Kenneth C. Vert of the Tax Division prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Miami-Dade County Resident Sentenced in Identity Theft Scheme Involving over 8,600 Patients’ IdentitiesRead the Press Release
A Miami-Dade County resident was sentenced to 61 months in prison, followed by two years of supervised release.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
Noel Barrientos previously pled guilty to one count of possessing fifteen or more access devices (social security numbers of other people) and one count of aggravated identity theft.
According to court documents, law enforcement executed a search warrant at Barrientos’ residence based on suspected narcotics activity. During the search warrant, officers observed and recovered a total of 15 credit/debit cards that were located throughout the premises all in different names including names of men and women not associated with Barrientos or his residence. Three of the cards were located in Barrientos’ wallet.
Court documents also state that during the search warrant, law enforcement found a computer that contained a file with the names, dates of birth, and social security numbers of 8,678 unique patients. Agents determined that the list came from a doctor’s office located on Sunset Drive in South Miami. A former doctor’s office employee, Gillian Armstrong [1:14-cr-20339], had access to the patient list and sold it to Barrientos. Barrientos sold the names to other individuals who used the fraudulently obtained names to file fraudulent income tax returns. Law enforcement officers also tracked fraudulent income tax return filings to Barrientos’ residence.
On September 16, 2015, Armstrong was sentenced to 36 months in prison, followed by three years of supervised release for her role in the scheme. Armstrong previously pled guilty to one count of possessing fifteen or more access devices (social security numbers of other people) and one count of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Brooke C. Watson.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MIGUEL ANGEL LOPEZ-HERNANDEZ, age 23, a citizen of Mexico, pled guilty yesterday to a one-count Indictment for illegal reentry of a removed alien.
According to the Indictment, on or about October 26, 2014, LOPEZ-HERNANDEZ was found in the United States after having been officially deported and removed on or about May 9, 2011.
LOPEZ-HERNANDEZ faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Jane Triche Milazzo set sentencing for March 26, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
McLaughlin Man Charged with Failure to AppearRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Failure to Appear.
Brett Charles Roach, age 27, was indicted on January 14, 2015. He appeared before U.S. Magistrate Judge William D. Gerdes on January 16, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges Roach was released from custody on a previously indicted charge, upon certain conditions imposed by the Court, including the condition that Roach attend all matters scheduled by the Court. On September 29, 2014, Roach was set to appear before the Honorable Charles B. Kornmann, U.S. District Judge, at Aberdeen, South Dakota, for jury selection. Roach is alleged to have knowingly failed to appear at this hearing, as required.
The charge is merely an accusation and Roach is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Roach was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Maryland Man Sentenced in Manhattan Federal Court to 20 Years in Prison for Sex Trafficking and Transporting A Minor Interstate for the Purpose of ProstitutionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that JABAR GILLIAM was sentenced in Manhattan federal court to 20 years in prison for trafficking a 16 year-old girl (the “Victim”) from Maryland to the Bronx and forcing her to engage in prostitution. GILLIAM was convicted of one count of sex trafficking of a minor by means of force, fraud or coercion and one count of transporting a minor interstate for the purpose of prostitution in September 2012 following a four-day trial before U.S. District Judge Thomas P. Griesa and a jury. GILLIAM was sentenced today by Judge Griesa.
Manhattan U.S. Attorney Preet Bharara said: “Jabar Gilliam forced a young woman into prostitution, and repeatedly subjected her to abuse of all kinds and threats, in effect terrorizing her physically and emotionally. Gilliam deserved a heavy punishment and that is what he received. I would like to thank the Federal Bureau of Investigation, the New York Police Department, and the Maryland State Police Department for helping this Office prosecute and punish those who perpetrate the heinous crime of sex trafficking of minors.”
According to the evidence at trial and documents filed in the case:
In October 2011, GILLIAM recruited the Victim to travel to New York to work for him as a prostitute. In addition to physically and sexually assaulting her, Gilliam threatened both the Victim and her family if she did not continue to work for him. In December 2011, GILLIAM traveled with the Victim from Maryland to New York, and thereafter, he arranged for her to engage in commercial sex acts with various individuals. GILLIAM set the prices for the commercial sex acts, and kept all of the money for himself. While in New York, he also continued physically, sexually and psychologically abusing the Victim. On December 2, 2011, GILLIAM was arrested as he and the Victim were returning to the apartment in the Bronx where he had prostituted her earlier that day.
In addition to the prison term, GILLIAM, 32, of Hagerstown, Maryland, was sentenced to five years of supervised release, and ordered to pay restitution in the amount of $2,100 to the Victim.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Maryland State Police Department.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Kristy J. Greenberg is in charge of the prosecution.
Manhattan U.S. Attorney Announces That Historic $5.15 Billion Environmental and Tort Settlement with Anadarko Petroleum Corp. Goes into EffectRead the Press Release
More than $4.4 Billion of the Money Expected to Be Distributed to Fund Environmental Clean-Up and Claims; More than $600 Million for Tort Victims
Largest Litigation Recovery by Government for the Clean-Up of Environmental Contamination
Preet Bharara, the United States Attorney for the Southern District of New York, John C. Cruden, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division (“ENRD”), and Cynthia Giles, Assistant Administrator of the U.S. Environmental Protection Agency, announced today that the historic settlement between the United States, co-plaintiff Anadarko Litigation Trust (the “Trust”), and Anadarko Petroleum Corporation and its affiliates (the “defendants”) has gone into effect. This settlement resolves fraudulent conveyance claims brought by the United States and the Trust against the defendants in the bankruptcy of Tronox Inc. and its subsidiaries. Today, pursuant to the settlement agreement, the defendants paid $5.15 billion, plus interest, to the Trust. The Trust is expected to distribute more than $4.4 billion to fund environmental clean-up and for environmental claims. The settlement constitutes the largest payment for the clean-up of environmental contamination ever obtained in a lawsuit brought by the Department of Justice.
Manhattan U.S. Attorney Preet Bharara said: “The Kerr-McGee Corporation spent decades despoiling our Nation’s natural resources, leaving a toxic legacy for communities across the nation, from Sidney, New York, to the Navajo Nation. Then, Kerr-McGee tried to escape the consequences of its misdeeds by transferring its most valuable assets to affiliates, leaving an insolvent shell behind, unable to pay its environmental liabilities. As today’s historic payment shows, the Government will not allow polluters to escape paying for the damage they inflict on our land, water and people, and we will hold accountable those who attempt to shield themselves from responsibility behind improper corporate transactions.”
Assistant Attorney General John C. Cruden said: “This recovery will lead to cleanups across the country that will undo lasting damage to the environment, including contamination of tribal lands, by Kerr-McGee’s businesses. This result emphatically demonstrates the Justice Department’s commitment to environmental justice for all Americans, and it fulfills the Department’s promise to hold accountable those who pollute and those who try to foist their responsibility for cleanup on the American taxpayer.”
EPA Assistant Administrator Cynthia Giles said: “If you pollute the environment, you should be responsible for cleaning it up. From Navajo Nation to low income neighborhoods across America, more than $4.4 billion will be put to work cleaning up toxic pollution. This historical environmental cleanup will have a lasting impact on American communities.”
Settlement Approval
As noted by United States District Judge Katherine B. Forrest, in approving the settlement in November, this case arises from a “series of transactions [by the Kerr-McGee Corporation] that resulted in the spin-off of Tronox, which Kerr-McGee left saddled with the massive environmental and tort liabilities it had accumulated over the course of decades of operating in the chemical, mining, and oil and gas industries, but without sufficient assets with which to address these liabilities.” For this reason, as the District Court explained, both the United States and the Tronox estate (now represented by the Trust) brought fraudulent conveyance claims against the defendants.
On April 3, 2014, the United States announced this settlement resolving the claims against the defendants, which was then subject to a period of public comment and judicial approval. After receiving and considering comments from the public, the United States sought approval of the settlement agreement, and on November 10, 2014, the district court approved the settlement as “fair and reasonable.” The deadline for any appeals from the district court’s decision passed on January 20, 2015, without any appeals having been taken and therefore the settlement agreement went into effect on January 21, 2015.
Today, pursuant to the settlement agreement, the defendants paid $5.15 billion, plus interest from April 3, 2014, to the Trust. Pursuant to the terms of prior agreements in the Tronox bankruptcy, the Government estimates that more than $4.4 billion of this recovery will be paid to the United States, state governments, the Navajo Nation, and four environmental response trusts created in the bankruptcy to clean up contaminated property. An estimated more than $600 million will be paid to a trust created to pay tort victims.
Mr. Bharara again thanked the many federal, state, and tribal officials who worked tirelessly on this matter, as well as the Trust, its trustee, and its counsel, for their critical work on this case.
This case was handled by the Environmental Protection Unit and the Tax and Bankruptcy Unit of the Office’s Civil Division. Assistant U.S. Attorney Robert William Yalen is in charge of the case, which he handled along with Assistant U.S. Attorney Joseph Pantoja and Alan S. Tenenbaum, Katherine Kane, Frederick S. Phillips, Marcello Mollo, and Erica Pencak of ENRD.
Manager in Loan Modification Scheme Sentenced to 36 Months in PrisonRead the Press Release
A Broward County resident was sentenced today by U.S. District Judge Kenneth Marra to 36 months in prison, to be followed by two years of supervised release and was ordered to pay $350,470.00 in restitution in a loan modification scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Jeffrey Charles Leroy Taylor, 40, of Fort Lauderdale, previously pled guilty to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided. All ten defendants charged in this case have pled guilty to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. Taylor’s co-defendants received initial sentences ranging from 21 months to 134 months in prison.
The indictment alleges that Jason Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Jeffrey Taylor served as a team manager of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments. According to the Sentencing Memorandum filed by the defendant, Jeffrey Taylor previously played football for the University of Miami and the Tampa Bay Buccaneers.
As alleged in the indictment, the defendants made false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling more than seven million dollars to the defendants.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Sentenced for Preparing False Income Tax ReturnRead the Press Release
HOUSTON – Income tax return preparer Simon Makangula has been ordered to prison for willfully aiding and assisting in the preparation of a false income tax return for a client, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI). Makangula pleaded guilty Oct. 15, 2014.
Today, U.S. District Judge Gray H. Miller sentenced ordered Makanagula to serve 18 months in federal prison and must pay $51,645.00 in restitution to the IRS.
Makangula was convicted of assisting in the preparation of one false U.S. Individual Income Tax Return. According to the plea agreement filed in the record of the case, Makangula admitted that the return contained two false dependents, a false refundable education credit, a false earned income credit and a false Schedule C loss from a sole proprietorship that the taxpayer did not have. Makangula admitted that the tax loss on the return in question was approximately $9,731.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.