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9 March 2015
Parmelee Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Richard Fool Bull, age 37, was indicted on February 10, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 3, 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 on or about between November 14, 2014, and December 9, 2014, Fool Bull, 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, knowingly failed to register and update his registration.
The charge is merely an accusation and Fool Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Fool Bull was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Owner of Overland Park Hotel Sentenced to Prison for Employing Undocumented WorkersRead the Press Release
KANSAS CITY, KAN. - The owner of an Overland Park hotel was sentenced Monday to 27 months in federal prison for employing undocumented workers, who were paid less than other employees, U.S. Attorney Barry Grissom said. Last month, the defendant’s wife was sentenced to 21 months in the same case.
“I hope Kansas business owners are listening,” said Grissom. “You can go to prison for knowingly employing undocumented workers. Violating federal law is not a good business strategy.”
Munir Ahmad Chaudary, 53, and his wife, Rhonda R. Bridge, 42, both of Overland Park, Kan., pleaded guilty to one count of conspiracy to harbor undocumented aliens for financial gain. In their pleas, they admitted employing undocumented workers at two hotels they owned: A Clarion Hotel at 7000 W. 108th in Overland Park, and a Clarion Hotel at 11828 NW Plaza Circle in Kansas City, Mo.
Chaudary and Bridge lowered their hotels’ operating costs and put themselves at a competitive advantage by not paying Social Security, Workers Compensation and unemployment insurance for the undocumented workers.
“The Chaudarys sought to game the system and gain an unfair business advantage over their legitimate competitors by hiring illegal aliens at cut-rate wages,” said Gary Hartwig, special agent in charge of HSI Chicago. “Homeland Security Investigations will continue to work with our federal, state, and local partners to keep the playing field level for all American business owners.”
“Employers who are covered by the Fair Labor Standards Act must pay minimum wages and overtime premiums to their employees. They must not be allowed to evade these provisions by hiring undocumented workers and paying them less than the statute requires,” said Ricky Robinson, Acting District Director of the Kansas City District Office of the Wage and Hour Division of the U.S. Department of Labor. “We will continue to enforce the FLSA without regard to whether an employee is documented or undocumented. Under the FLSA, the Department (or an employee) seeks back pay for hours an employee has actually worked, under laws that require payment for such work.”
According to court records, the investigation began in December 2011 when the U.S. Department of Homeland Security (DHS) and the Kansas Department of Revenue (KDOR) received information that the owners of the hotels were employing foreign nationals who were not lawfully present in the United States. In June 2012, an undercover agent posing as an undocumented worker got a job at the Overland Park Hotel. He was hired even though he told his employers he was not authorized to work in the United States.
In 2011 and 2012 the defendants filed false and fraudulent Quarterly Wage Reports and Unemployment Tax Returns with the Kansas Department of Labor in which they under-reported the number of employees at the Overland Park hotel, the amount of total wages paid and the amount of unemployment taxes due.
Chaudary is the final defendant to be sentenced in the case. Judith Vanzant, a hotel manager, and Syed Naqvi, a Pakistani native who worked as a desk clerk, already were sentenced.
The government also is seeking forfeiture of the proceeds of the crime. The judge will take up that issue at a later time.
Grissom commended Homeland Security Investigations (HSI), the Kansas Department of Revenue (KDOR), the Overland Park Police Department, the U.S. Department of Labor and Assistant U.S. Attorney Brent Anderson for their work on the case.
Omaha Woman Sentenced for Theft of Government Property and Mail FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that the Honorable Laurie Smith Camp sentenced LaTosha Bolton, age 48, of Omaha, Nebraska, to one year, three months imprisonment after a jury had previously found her guilty of theft of government property and mail fraud. Trial was held in October 2014. Ms. Bolton was also ordered to pay the Social Security Administration $124,960.90 and will serve a three-year term of supervised release after she completes her incarceration.
From 1993 until 2013 Ms. Bolton was receiving Supplemental Security Income benefits on behalf of one of her children. While it was clear the child did have a disability, by finding her guilty, the jury found that Ms. Bolton did not use the money for the benefit of her child as required by law. Ms. Bolton received $124,960.00 of government SSI funds and most of that money was sent through the United States mail.
The case was investigated by the Office of Inspector General, Social Security.
Oklahoma City Man Pleads Guilty to Child Sex TraffickingRead the Press Release
Oklahoma City, Oklahoma – Today, WILLIAM VONTRAIL JOHNSON, 28, from Oklahoma City, pleaded guilty to prostituting a 14-year-old girl in an Oklahoma City motel, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on June 13, 2014, a sting operation led by the Oklahoma Bureau of Narcotics Human Trafficking Division and the Oklahoma City Police Department Vice Unit recovered a 14-year-old girl from an Oklahoma City hotel where she was being prostituted by Mr. Johnson. An online advertisement for escort services led law enforcement to the girl. Shortly after the girl was recovered from the hotel room, Mr. Johnson was arrested in the parking lot with a key to the hotel room where the girl was recovered. Mr. Johnson also had $800 in cash and a smart phone, which was examined by law enforcement. Mr. Johnson’s internet history on his smart phone showed it had been used to post the online advertisement that law enforcement had responded to. The smart phone also stored numerous images of the girl and a video of Mr. Johnson engaging in sex acts with her.
Mr. Johnson was indicted by a federal grand jury on December 3, 2014. During the plea hearing today, Mr. Johnson admitted to child sex trafficking of the 14-year-old girl in Oklahoma City and Texas, including posting advertisements online and accepting money in exchange for her performing sex acts.
At sentencing, Mr. Johnson faces a mandatory minimum of ten years and up to life in prison. A sentencing hearing will be set by the court in approximately 90 days.
This case is the result of an investigation by the Oklahoma Bureau of Narcotics Human Trafficking Division, the Oklahoma City Police Department Vice Unit, and the Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorneys Brandon Hale and K. McKenzie Anderson.
Nevada Husband and Wife Sentenced for Social Security FraudRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Nevada, Mo., couple was sentenced in federal court today for Social Security fraud.
Reta Jo Carpenter, 53, and her husband, Oren Daniel Carpenter, 52, both of Nevada, were sentenced in separate appearances before U.S. District Judge M. Douglas Harpool. Reta Carpenter was sentenced to 15 months in federal prison and Oren Carpenter was sentenced to five years of probation. The Carpenters were also ordered to pay $96,711 in restitution to the Social Security Administration.
On Oct. 7, 2014, the Carpenters pleaded guilty to making false statements to the Social Security Administration. Reta Carpenter, who was unemployed and disabled, had been receiving Supplemental Security Income (SSI) benefits since 1990. In 1997, she falsely claimed that Oren Carpenter no longer lived with her. When Oren Carpenter was interviewed by federal agents, he falsely stated that he did not share a residence with his wife and falsely claimed that he had been living with other family members.
As a result, Oren Carpenter’s annual income was no longer considered in determining Reta Carpenter’s eligibility for SSI benefits. This resulted in overpayments to Reta Carpenter totaling $99,411 as of Aug. 23, 2012.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the Social Security Administration, Office of Inspector General.
Navajo Man Sentenced for Assaulting Federally Commissioned Tribal OfficerRead the Press Release
ALBUQUERQUE – Adrian Lopez, 25, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., was sentenced this morning in federal court to 15 months in prison followed by two years of supervised release for assaulting a federal law enforcement officer.
Lopez was arrested Sept. 12, 2014, on a criminal complaint charging him with assault on a federal officer. According to the complaint, Lopez assaulted a tribal officer who was commissioned as a special federal officer by the BIA on the Navajo Indian Reservation in San Juan County, N.M., on July 28, 2014, following a high speed vehicle pursuit. Lopez subsequently was indicted and charged with assaulting a federal officer.
On Dec. 10, 2014, Lopez pled guilty to the indictment. In his plea agreement, Lopez admitted being in a vehicle that was fleeing from tribal officers. Lopez admitted that he and another person fled from the vehicle after it crashed, and that they ignored commands from the officers. As officers attempted to arrest the couple, Lopez grabbed an officer’s belt and pulled him to the ground. Lopez then struck the officer in the head several times and pushed his head into the ground with his hands.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Linda Mott.
Monticello Man Charged with Attempted Enticement of A MinorRead the Press Release
Colton Rickels, age 19, of Monticello, Iowa, has been charged with one count of attempted enticement of a minor. The charge is contained in an Indictment filed on March 4, 2015, in United States District Court in Cedar Rapids.
The Indictment alleges that, in October 2014, Rickels attempted to persuade, induce, entice, and coerce a minor female to engage in criminal sexual activity.
If convicted, Rickels faces a mandatory minimum sentence of ten years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, a $100 special assessment, and at least five years and up to life on supervised release following any imprisonment.
Rickels appeared for a detention hearing today in federal court in Cedar Rapids and was released on bond. Rickels’ next appearance for trial is set for May 4, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Monticello Police Department, and the Cedar Rapids Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-20.
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Montgomery County Man Gets Prison Term for Clean Air Act ViolationRead the Press Release
PHILADELPHIA - Anthony Biello II, 56, formerly of Ambler, Pennsylvania, was sentenced today to one year and one day in prison for violating the Clean Air Act. Biello failed to notify the City of Philadelphia’s Air Management Services division of the U.S. Environmental Protection Agency of the removal of asbestos-containing material from a former church located at 1133 Spring Garden Street in Philadelphia.
In addition to the prison term, United States District Court Judge Paul S. Diamond ordered a $100 fine, restitution to the City of Philadelphia of $12,000, a $100 special assessment and two years of supervised release. The court also ordered that the defendant not work in the asbestos removal industry during the period of supervised release.
“Asbestos must be removed and disposed of safely and legally,” said David G. McLeod, Jr., Special Agent in Charge of EPA's criminal enforcement program in the Middle Atlantic States. “There is no 'safe' level of exposure to asbestos. It is a serious threat to the general public's health and safety. Today's sentencing demonstrates that those who try to make money by breaking the law and putting others at potential risk will be vigorously prosecuted.”
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the City of Philadelphia’s Air Management Services office. The case was prosecuted by Special Assistant United States Attorneys Martin Harrell and Patricia C. Miller from the EPA.
Mobile County Man Sentenced to 121 Months for Armed CarjackingRead the Press Release
The United States Attorney Kenyen Brown announces that Vincent Cole, a 26 year old, Mobile, Alabama resident, was sentenced today to 121 months incarceration for pointing a firearm in the face of a Mobile citizen and forcing that citizen to give Mr. Cole his 1993 customized Chevrolet Suburban and other items.
On December 2, 2014, Mr. Cole pled guilty to carjacking and using a firearm during an in relation to a crime of violence.
In detail, on November 4, 2012, at approximately 4 a.m., Cole approached a Mobile citizen as the citizen exited his vehicle in the driveway of the citizen’s home. Cole pointed a gun at the citizen and told him to give Cole all of his money and his vehicle. The citizen complied and gave Cole, not only the $40.00 cash in his pocket and the keys to his customized 1993 Chevrolet Suburban, but also his cell phone SIM card. Cole took the items then fled in the vehicle.
A short time later, the citizen gave a detailed description of Cole and what he was wearing, (including a gray hoodie) to police officers. Within hours, the citizen’s vehicle was found vehicle was found. The radio, speakers and amplifier and several high grade sound system items were
missing from the vehicle. The crime scene techs were able to lift comparable prints from the vehicle. The prints were run through a criminal fingerprint database and were matched to Cole. Officers showed a photo spread to the citizen with Cole’s photo included. The citizen positively identified Cole from the photo spread as the carjacker.
An Arrest warrant was obtained for Cole and he was arrested on November 6, 2012, at his residence without incident. A search warranted was obtained for his residence, and seized during the execution of the warrant were, ammunition, a car radio, speakers, an amplifier, and a gray hoodie. All items recovered were taken for the Chevy Suburban.
Detectives of the Mobile Police Department along with state task forces agents assigned to the Federal Bureau of Investigation’s violent crime unit investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Miami-Dade County Resident Convicted for Being a Felon in Possession of a FirearmRead the Press Release
A Brownsville resident was convicted by a jury for being a felon in possession of a firearm.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Contrell Leo Floyd, a/k/a “Kevin Wells,” 34, was convicted in a two-day trial before U.S. District Judge Federico A. Moreno for being a felon in possession of a firearm. In the early afternoon of October 20, 2014, two Robbery Intervention Detail MDPD Detectives in an unmarked vehicle saw Floyd in front of Brownsville middle school and began to approach Floyd to ask him questions. Before they could speak with him, Floyd quickly stopped, turned toward the car, and pulled up his shirt to flash a handgun that was tucked in his waistband. Immediately upon seeing the gun, one detective drew his weapon and announced “police!” Floyd fled and threw the firearm into a public park in front of Brownsville middle school. The police officers apprehended Floyd after a short pursuit and recovered the loaded handgun.
Floyd had been previously convicted of state felony crimes, including armed robbery with a firearm.
Floyd is scheduled to be sentenced on May 11, 2015, at 10:00 a.m., and faces a minimum sentence of 15 years in prison as an armed career criminal.
Mr. Ferrer commended the investigative efforts of ATF and MDPD. The case is being prosecuted by Assistant U.S. Attorneys Timothy Abraham and Vanessa Snyder.
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 Sentenced to Federal Prison for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Patsy Vega-Montoya, 25, a Mexican national from Sonora, Mexico, was sentenced this morning in federal court in Albuquerque, N.M., to 41 months in federal prison. Vega-Montoya will be deported after completing her term of imprisonment.
Vega-Montoya was arrested on Sept. 10, 2014, near Grants, N.M., after the New Mexico State Police found packages containing approximately 5.95 kilograms of heroin in her vehicle following a routine traffic stop. Vega-Montoya subsequently was indicted on Sept. 23, 2014, and charged with possession of heroin with intent to distribute.
On Dec. 8, 2014, Vega-Montoya pled guilty to a felony information charging her with possession of heroin with intent to distribute. In entering her guilty plea, Vega-Montoya admitted that on Sept. 10, 2014, when she was stopped by New Mexico State Police, she gave the officers permission to search her vehicle. During the search, the officers found 11 packages containing approximately 5.95 kilograms of heroin which Vega-Montoya was being paid to transport to Colorado.
This case was investigated by the Albuquerque office of the DEA and New Mexico State Police and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
This case was prosecuted pursuant to the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative is a collaborative effort between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center that is partnering 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. The HOPE Initiative comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. The law enforcement component of the HOPE Initiative is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative.
Madison Man Sentenced for Gun PossessionRead the Press Release
Dexter L. McClendon, 26, of Madison, IL, was sentenced Friday in the U.S. District Court for the Southern District of Illinois to 6 months in prison, followed by 12 months of home confinement on one count of Possession of a Weapon by a Prohibited Person, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
McClendon had previously been convicted of a misdemeanor Domestic Battery offense, which prohibited him from possessing any firearms or ammunition. On July 28, 2014, he had been in possession of a 7.62 caliber rifle.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant United States Attorney Laura Reppert.
Louisiana Army National Guard Soldier Pleads GuiltyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that on Friday, March 6, 2015, PABLO E. PAZ, 45, of New Orleans, pled guilty to one count of conspiracy to commit theft of government funds.
According to court documents, PAZ was a recruiter for the Louisiana Army National Guard. In this capacity, Paz obtained personally identifiable information (PII), such as names, dates of birth and social security numbers, from potential soldiers that came to the recruiting station for the purpose of becoming a soldier. Paz provided the PII of potential soldiers to his co-defendant, Ramon Madrid, without the knowledge or consent of the soldiers, to obtain Guard Recruiter Assistance Program (G-RAP) incentive payments to which they were not entitled. Madrid received approximately $30,000 in fraudulently obtained recruitment incentive payments, a portion of which he provided to PAZ.
PAZ faces a maximum term of five years imprisonment, a fine of up to $250,000, and up to three years of supervised release. U.S. District Judge Jay C. Zainey set sentencing for June 2, 2015.
U.S. Attorney Polite praised the work of the United States Army Criminal Investigation Division Command and the Defense Criminal Investigative Service in investigating this matter. Public Integrity Unit Chief Tracey N. Knight is in charge of the prosecution.
Lackawanna Man Pleads Guilty to Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Carvis McCutcheon, 34, of Lackawanna NY, pleaded guilty to conspiracy to possess with the intent to distribute crack cocaine before U.S. District Judge Richard J. Arcara. The charge carries a mandatory minimum five years in prison and a maximum of 40 years.Assistant U.S. Attorney John M. Alsup, who is handling the case, stated that the defendant conspired with others to sell crack cocaine in Lackawanna. Some of the sales took place in the area of the Gates Housing Facility.
"As this case demonstrates, our Office will simply not allow a defendant to turn a facility created for the public good into a private prison of misery, said U.S. Attorney Hochul."
The plea is the culmination of an investigation on the part of the Lackawanna Police Department, under the direction of Chief James Michel and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. hunt, New York Field Division.
Sentencing is scheduled for before June 29, 2015 at 12:30 p.m. before Judge Arcara.
Kyle Woman Indicted for Abusing InfantRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, woman has been indicted by a federal grand jury for Felony Child Abuse & Neglect.
Jeannie Janis, age 29, was indicted on February 18, 2015. She appeared before U.S. Magistrate Judge Veronica L. Duffy on March 4, 2015, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that in June of 2014, at Pine Ridge, Janis intentionally caused serious injuries to her 5-week old baby boy.
The charge is merely an accusation and Janis is presumed innocent until and unless proven guilty.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Janis was released pending trial. A trial date has not been set.Justice Department Settles Lawsuit Against International Hotel Chain over Discrimination Against Foreign-Born WorkerRead the Press Release
The Justice Department announced today that it reached a settlement with Hilton Worldwide (Hilton), an international hotel chain, to resolve allegations that Hilton discriminated against a foreign-born worker. Specifically, the department found that a Hilton-owned hotel in Naples, Florida, discriminated against an asylee by improperly rejecting his Social Security card when the hotel reverified his employment authorization.
Under the anti-discrimination provision of the Immigration and Nationality Act (INA), employers cannot reject an employee’s work-authorization documents because of the employee’s citizenship, immigration status or national origin. When verifying or re-verifying an employee’s work authorization, employers must allow workers to choose which documents to present from the lists of acceptable documents, and employers cannot reject documents that reasonably appear to be genuine and relate to the worker.
This matter first came to the department’s attention through the worker hotline of the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC). By the time the parties reached a settlement, Hilton had rehired the worker who was harmed by the company’s practices. Under the settlement agreement, Hilton will pay the worker $12,600 for lost wages, pay a $550 civil penalty to the United States, change its employment policies and be subject to two years of monitoring by the Justice Department.
“Employers must ensure that they have non-discriminatory Form I-9 practices,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Justice Department will continue to work with employers to help implement best practices that comply with federal law.”
The department recently issued a document, How Employers Can Avoid Discrimination in the Form I-9 and E-Verify Processes, to help employers implement best practices that comply with federal law. OSC is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email [email protected] or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to (1) different documentary requirements based on their citizenship, immigration status, or national origin, or (2) discrimination based on their citizenship, immigration status or national origin in hiring, firing, or recruitment or referral for a fee, should contact OSC’s worker hotline for assistance.
Justice Department Seeks to Permanently Shut Down California Tax Preparer and Convicted FelonRead the Press Release
The United States has asked a federal court in Sacramento, California, to bar a Ripon, California, man from preparing tax returns for others, the Justice Department announced today.
According to the government’s complaint, Sarad Chand has repeatedly prepared federal tax returns that understate his customers’ federal tax liabilities.
The complaint alleges that Chand, and others working with him under the business name S. Chand Tax & Accounting Services, prepared tax returns that falsely claimed inflated or fabricated tax credits or deductions. The suit notes that Chand most frequently prepared returns that falsely inflated unreimbursed employee business expenses. Chand also created Schedule Cs (Profit or Loss From Business) with false income, while for other clients he created false losses or inflated expenses, according to the suit. According to the complaint, these fabrications served to improperly reduce the customers’ taxable income and resulted in reduced tax liability or inappropriate tax refunds. Moreover, according to the complaint, Chand also led his customers to believe that he was a former Internal Revenue Service (IRS) employee, when he was not.
The suit also notes that on May 15, 2014, Chand pleaded guilty to aiding and assisting in the preparation and presentation of a false and fraudulent tax return in United States v. Chand, et al., Case No.1:12-CR-00425 (E.D. Cal.). As part of his plea agreement, Chand agreed to the entry of a permanent civil injunction, according to the complaint.
The suit alleges that the IRS has completed examinations of 919 of the approximately 8155 tax returns Chand prepared from 2008 to 2012, and that nearly all of the examined returns resulted in a finding of deficiency or denial of a refund claim. The total tax understatement from the 886 returns found to be inaccurate totaled more than $2.7 million.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2015. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jury Finds Fayetteville Businessman Guilty of Bank FraudRead the Press Release
Fayetteville, Arkansas – The United States Attorney’s Office for the Western District of Arkansas, announced that Andrew C. Judkins, age 42, of Bixby, Oklahoma, formerly of Fayetteville, was found guilty on two counts of Bank Fraud following a five day jury trial. During the trial, the jury was presented with over 300 exhibits and heard from 39 witnesses. The Honorable Timothy L. Brooks presided over the trial in United States District Court.
According to evidence presented at the trial, in June of 2008, Judkins executed a scheme to obtain money and funds owned by and under the custody and control of First Security Bank by means of false and fraudulent pretenses, representations and promises. Namely, Judkins submitted a fake invoice representing A. Camp Equipment’s purchase of two dump trucks in the amount of $500,000.00 to First Security Bank. A. Camp Equipment was a business in Fayetteville, owned and operated by Judkins, which sold, rented, and serviced new and used heavy equipment such as dump trucks and bulldozers. Judkins purchased the two trucks in 2007 for $30,000.00 each, and in 2008, represented to First Security Bank that each truck was worth $250,000.00. In August of 2009, Judkins knowingly executed a scheme to defraud First Security Bank, by delivering to the First Security Bank representative conducting an on-site floor plan audit at A. Camp Equipment in Fayetteville, a false and fraudulent rental agreement that showed one of the dump trucks, in which First Security Bank held a $250,000.00 security interest, had been rented to Keepes Construction in Sallisaw, Oklahoma. This false rental agreement was delivered in order to conceal from First Security Bank that one of the dump trucks had actually been sold in July, 2008, for $74,000.00, without Judkins repaying First Security Bank.
Judkins was indicted by a Federal Grand Jury in December of 2013. Sentencing will be held at a later date. The maximum penalty for each count is not more than 30 years imprisonment, not more than $1,000,000.00 fine, or both imprisonment and fine. The defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violations. The sentence will not exceed the statutory maximum for each count in this case, and in most cases will be less than the maximum.
This case was investigated by the Federal Bureau of Investigations. Assistant United States Attorneys Kyra Jenner and Steve Snyder prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov* * * E N D * * *
Iranian Pilot Sentenced to 27 Months in Prison for Stealing U.S. Pilot’s Identity to Obtain Federal Aviation Administration CredentialsRead the Press Release
An Iranian man was sentenced today in Houston to serve 27 months in prison for using personally identifying information stolen from a U.S. pilot to fraudulently obtain a U.S. Federal Aviation Administration (FAA) Airline Transport Pilot (ATP) certificate and flight instructor certificate. At today’s sentencing hearing, the government indicated that the defendant sought the FAA credentials to allow him to fly aircraft for profit, and that there was no evidence that he was engaged in any terrorism-related activity.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
Nader Ali Sabouri Haghighi, 41, of Iran, pleaded guilty on Nov. 3, 2014, to four counts of identity theft related to his use of the victim pilot’s passport and personally identifying information to fraudulently obtain the FAA credentials at issue. U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas imposed the sentence.
An ATP certificate is the highest grade of certificate issued by the FAA. It authorizes the holder to pilot multi-engine aircraft under U.S. aviation regulations.
At his plea hearing, Haghighi admitted that he stole the identity of the victim pilot, which he used to obtain certain FAA credentials. These credentials permit a pilot to fly multi-engine aircraft, and have strict requirements for training, knowledge and experience. Haghighi had never been issued these specific credentials, and a general pilot’s license he had previously been issued had been revoked by the FAA.
Haghighi admitted that he used the victim pilot’s information to log onto the Airman Services Records System, an on-line database used by the FAA to monitor and regulate persons authorized to fly aircraft, posing as the victim pilot. He then changed the contact information associated with the victim pilot’s profile and requested a replacement ATP certificate and flight instructor certificate.
Haghighi also admitted that he fraudulently obtained a credit card in the victim pilot’s name and used the credit card to pay for the replacement FAA credentials.
According to court records, on Sept. 15, 2012, Haghighi crashed an airplane in Bornholm, Denmark, while in possession of the victim’s ATP certificate. After facing criminal charges in Denmark and Germany, Haghighi returned to Iran, only to later resurface in Indonesia. He was finally arrested in Panama, where he waived extradition to the United States in August 2014.
The case was investigated by the Office of Inspector General of the U.S. Department of Transportation, with significant assistance from the Federal Aviation Administration, the Diplomatic Security Service of the State Department and the Department of Homeland Security’s U.S. Immigration and Customs Enforcement, Homeland Security Investigations. The Criminal Division’s Office of International Affairs and the FBI also provided significant assistance in Haghighi’s apprehension and extradition. Assistance was also provided by the Bornholms Politi (Denmark Police). The case was prosecuted by Senior Trial Attorney William A. Hall Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Craig Feazel of the Southern District of Texas.
Indictment: Former Osawatomie Recreation Director Embezzled More Than $125,000Read the Press Release
WICHITA, KAN. - The former recreation director for the City of Osawatomie is scheduled to appear in court this month on a federal indictment alleging he embezzled more than $125,000 from the city, U.S. Attorney Barry Grissom said Monday.
Ron Maring, 53, Osawatomie, Kan., is scheduled for an initial appearance March 27 in U.S. District Court in Wichita. He is charged with four counts of tax fraud and 10 counts of money laundering.
The indictment alleges that from 2008 to 2011 while Maring was director of the Osawatomie Recreation Commission he embezzled approximately $125,665. He wrote checks from the recreation commission’s account to himself and to American Legion Baseball. He converted the money for his own use and not for the use of the recreation commission or American Legion Baseball.
As part of the scheme, he persuaded recreation commission board members to sign blank checks, used his own signature as an endorsement, instructed a recreation commission employee to endorse checks and forged the name of recreation commission members.
The indictment alleges he failed to report the embezzled money as income on his 2008, 2009, 2010 and 2011 federal income taxes. The indictment also cites 10 dates in 2011 in which Maring deposited stolen funds into his personal account.
The Osawatomie Police Department, the Kansas Department of Revenue, Office of Special Investigation, and the Internal Revenue Service – Criminal Investigations investigated. Assistant U.S. Attorney Aaron Smith is prosecuting.
Hudson County Man Admits Role in $13 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. - A Hudson County, New Jersey, man today admitted his role in a $13 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos in Wildwood and Wildwood Crest, New Jersey, U.S. Attorney Paul J. Fishman announced.
John Leadbeater, 58, of Kearny, New Jersey, pleaded guilty before U.S. District Judge Jerome B. Simandle in Camden federal court to a superseding indictment charging him with conspiracy to commit wire fraud. The plea came after the first week in what prosecutors and defense lawyers expected to be a lengthy mortgage fraud trial.
According to documents filed in this case and statements made in court: Leadbeater and the conspirators located for purchase condominiums overbuilt by financially distressed developers in Wildwood and Wildwood Crest, New Jersey. Leadbeater and his conspirators recruited “straw buyers” from New Jersey, New York, Ohio, Arkansas, and California, to purchase those properties. The straw buyers had good credit scores, but lacked the financial resources to qualify for the mortgage loans. The conspirators created false documents such as loan applications that contained fraudulent financial and employment information, to make the straw buyers appear more credit-worthy than they actually were in order to induce the lenders to make the loans.
To prepare the straw buyers’ false loan applications, Leadbeater and his conspirators caused fraudulent mortgage loan applications in the name of the straw buyers to be submitted to mortgage brokers that the brokers knew were false, attributing to the straw buyers inflated income and assets. Once the loans were approved, Leadbeater and his conspirators created and signed fraudulent closing documents in order to induce the mortgage lenders to send the loan proceeds in connection with real estate closings on the properties. Once the mortgage lenders sent the loan proceeds, Leadbeater and his conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to the other members of the conspiracy for their respective roles.
Leadbeater admitted to personally participating in fraudulent activity related to nine properties in Wildwood and Wildwood Crest. He admitted to causing mortgage lenders to fund $4,711,557 worth of mortgages based on false and fraudulent loan applications and closing documents prepared by him and his conspirators. As part of his guilty plea to the wire fraud conspiracy, prosecutors agreed to dismiss a charge of money laundering conspiracy.
Twelve of the conspirators not charged in the superseding indictment have already pleaded guilty to the mortgage fraud scheme. On diverse dates in 2013, John Bingaman, 45, of Benton, Arkansas; Angela Celli, 42, of Somerset, Massachusetts; Deborah Hanson, 52, of Sewell, New Jersey; Robert Horton, 40, of Nashport, Ohio; Michelle Martinez, 50, of Brick, New Jersey; Ernesto Rodriguez, 46, of Brick; Dana Rummerfield, 48, of Los Angeles, California; Justin Spradley, 37, of Cincinnati, Ohio; and Paul Watterson, 54, of Maplewood, New Jersey, pleaded guilty before the Judge Simandle. In 2015, Sweet Briar Development Corp. of New Jersey; Joel Tirado, 51, of Woodbridge, New Jersey; and Diana Wisniewski, 45, of Kings Park, New York, pleaded guilty before Judge Simandle. All await sentencing.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for June 26, 2015.
U.S. Attorney Fishman credited special agents from the FBI”s Atlantic City Resident Agency, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and special agents of IRS - Criminal Investigation in Mays Landing, under the direction of Special Agent in Charge Jonathan Larsen in Newark, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and Matthew T. Smith of the U.S. Attorney=s Office Criminal Division in Camden.
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Defense counsel: Thomas J. Cammarata Esq. and Jeffrey Garrigan Esq., Jersey CityLeadbeater, John Superseding Indictment
Guilty Plea in Bakersfield Mortgage Fraud SchemeRead the Press Release
FRESNO, Calif. — Arlene Jeanette Mojardin, 32, of Bakersfield, pleaded guilty today to conspiracy to commit bank fraud, mail fraud, and wire fraud, in connection with a mortgage fraud scheme in Bakersfield, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, from 2007 to 2010, Mojardin conspired with others to use straw buyers to purchase residential properties in Bakersfield. They paid straw buyers to purchase properties developed by Jara Brothers Investments (JBI) and Pershing Partners LLC and funded the purchases using loans they obtained based on false and fraudulent loan applications. The loan applications contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties. The conspirators concealed from the lenders that the property developers funded some down payments. The conspirators also submitted false supporting documentation to lenders such as false and altered bank account statements purporting to show that the straw buyers had a high bank account balances, false verifications of the straw buyers’ bank account funds, false verifications of rent purporting to be from straw buyers’ landlords, false pay stubs, and false verifications of employment.
Mojardin was a licensed real estate agent and handled many of the real estate transactions in furtherance of the conspiracy. She was also employed at relevant times at JBI, was a property buyer from Pershing Partners on at least two of the real estate transactions in the conspiracy, and obtained loans based on false and fraudulent information. Mojardin received proceeds from the conspiracy including payments for purchasing property as a nominee buyer and payments for acting as the real estate agent on many of the other transactions in the conspiracy. Mojardin admitted she caused lenders approximately $3,713,600 in losses due to her role in the conspiracy.
This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Megan A. S. Richards are prosecuting the case.
Mojardin is scheduled to be sentenced on May 18, 2015, by Senior United States District Judge Anthony W. Ishii. The maximum sentence for the conspiracy charge is 30 years in prison and a $1 million fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Antonio Perez-Marcial was sentenced on May 12, 2014, to 46 months in prison for his role in the conspiracy. Co-defendant Candace Gonzales previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and her sentencing is set for June 8, 2015. Co-defendant Ricardo Salinas previously pleaded guilty to bank fraud, and his sentencing is set for June 29, 2015. The indictment charges five additional defendants, who are set to proceed to trial on April 28, 2015, before Judge Ishii. The charges as to these defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fresno Pharmacy Agrees to Pay $1 Million in Civil Penalties to Resolve Controlled Substances Act ClaimsRead the Press Release
FRESNO, Calif. — Cedar Pharmacy has agreed to pay $1 million to settle claims that it failed to properly record hundreds of transactions involving controlled substances, failed to maintain complete and accurate records, and failed to follow prescription issuance guidelines in violation of the Controlled Substances Act (CSA), United States Attorney Benjamin Wagner announced today.
An audit and investigation of Cedar Pharmacy began in April 2013 when a drug offender on probation was found to be in possession of approximately $9,000 in cash and 34 prescription receipts with different patient names and addresses. All of the prescription receipts were from Cedar Pharmacy. The prescriptions, which were primarily for oxycodone, had been written by Dr. Jose Luis Flores who surrendered his medical license on April 16, 2014, following an investigation by the Medical Board of California. Cedar Pharmacy disclosed that the prescriptions had been filled a month earlier for a man who had paid in cash and had brought in 30 different driver’s licenses.
Cedar Pharmacy has also agreed to comply with a detailed action plan developed by the U.S. Attorney’s Office and the Drug Enforcement Administration. Per the action plan, employees who handle controlled substances must immediately complete a training program that addresses methods of detecting and preventing diversion as well as the requirements of federal law that a prescription may not be filled when a pharmacist has reason to know that it was issued for other than a legitimate medical purpose or by a practitioner acting outside the usual course of professional practice.
Should Cedar Pharmacy successfully complete the terms of the action plan and have no material violations, the United States will reduce the amount ultimately paid in settlement. The payment and action plan resolve the United States’ claims that Cedar Pharmacy violated the CSA.
“The abuse of prescription painkillers has become epidemic,” said United States Attorney Wagner. “The Controlled Substances Act is a tool to assist the DEA with better monitoring the movement of prescription drugs to end users. When pharmacies are lax in their record keeping or supervision of their drug-dispensing operations as required by the CSA, opportunities arise for the diversion of powerful drugs to unintended users who may be injured by them. Our office will continue to work with our law enforcement partners to investigate these cases and enforce federal law.”
“This significant civil penalty demonstrates our commitment to preventing the diversion of these substances by holding those accountable who are responsible for their distribution. The public can report illicit pharmaceutical activities online at www.DEAdiversion.usdoj.gov,” stated DEA Acting Special Agent in Charge Bruce C. Balzano. “The successful outcome of this investigation represents cooperation between DEA, the Clovis Police Department, Fresno County Sheriff’s Office, Kings County Sheriff’s Office and the California State Board of Pharmacy.”
Assistant United States Attorney Marilee L. Miller prosecuted the case.
Four convicted of heroin trafficking in ClarksburgRead the Press Release
CLARKSBURG, WEST VIRGINIA – Four individuals, including a Pennsylvania man, were convicted of drug trafficking near protected locations in Clarksburg, United States Attorney William J. Ihlenfeld, II, announced.
Robert Crenshaw, also known as “Pops,” 61, of McKeesport, Pennsylvania, admitted to heroin trafficking near a Clarksburg public housing authority facility. He pled guilty to one count of “Possession with Intent to Distribute Heroin within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $1,000,000.00.
Al-Teric Garrett, 23, of Clarksburg, admitted to heroin trafficking near a Clarksburg playground in December 2014. He pled guilty to one count of “Possession with Intent to Distribute Heroin within 1,000 Feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.00.
Jason Grant, 30, and Whitney M. Golden, 25, both of Clarksburg, admitted to heroin trafficking near a Clarksburg park in December 2014. They each pled guilty to one count of “Possession with Intent to Distribute Heroin within 1,000 Feet of a Protected Location – Aiding and Abetting,” for which they each face between one and forty years in prison and a fine of up to $2,000,000.00. Grant also pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime,” for which he faces up to between five years and life in prison and a fine of up to $250,000.00.
Assistant U.S. Attorney Shawn Morgan prosecuted the cases on behalf of the government. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, is leading the investigations.
U.S. District Court Judge Irene M. Keeley presided.
Four Street Gang Members Convicted for Drug Conspiracy, Firearm and Violent Crime ChargesRead the Press Release
The leader and three other members of Big Money Team (BMT), a violent street gang that operates in the Little Havana and Allapattah neighborhoods of Miami, Florida, have been convicted of drug conspiracy, firearm and violent crime charges following a one month long trial.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Defendants Maurin Chacon a/k/a “Tiny,” a/k/a “Peludo,” a/k/a “Yung Patron,” 27, Christopher Altamirano a.k.a “Tango,” a.k.a “Peter Baitz,” 22, Rodolfo Portela a.k.a “Papo L. Desperado,” 29, and James Dixon a.k.a “Smoke,” 20, each of Miami, Florida, were convicted of conspiracy to possess controlled substances with intent to distribute. Additionally, Chacon, Altamirano and Portela were convicted of possession of firearms in furtherance of drug trafficking or violent crime. Chacon and Portela were also convicted of firearm and ammunition possession by convicted felons. Additionally, Altamirno was also convicted of the commission of violent crime in aid of racketeering, in relation to a November 20, 2013 armed robbery. The charges resulted from a second superseding indictment returned by a federal grand jury on October 3, 2014, following an investigation that began in March of 2013.
During the trial, a civilian witness testified that the BMT “invaded” and “took over” a neighborhood in Little Havana. According to the civilian witness, BMT members robbed and sold narcotics on a daily basis. Through cooperating defendant testimony, the jury heard that members of the BMT gained status within the gang through the commission of violent acts. The trial evidence also included jailhouse phone calls which captured BMT members discussing the operation of their narcotics and prostitution activities, thwarting law enforcement’s investigation of the group, the recovery of a firearm used during a robbery to prevent law enforcement seizure, and the brutal assault of a witness who cooperated with authorities.
Further, the government introduced evidence of BMT’s commitment to criminal activity and long term criminal associations. For example, the government introduced a photograph that Chacon, the leader of the organization, posted on a social media site. The photograph was of Chacon posing in front of the state criminal courthouse and had the underlying caption in which Chacon compared himself to the former leader of the Gambino Crime family, John Gotti. Additional trial evidence included undercover recordings of gang members distributing narcotics and conducting a gun sale.
“The conviction of four violent members of the street gang ‘Big Money Team,’ including the gang’s leader, is a victory for the residents of Little Havana and Allapattah. These gang members used violence to intimidate, harass and oppress our community’s citizens,” said U.S. Attorney Wifredo A. Ferrer. “We will continue to partner with our federal and local law enforcement partners to bring to justice those whose violent criminal conduct and brazen threats paralyze neighborhoods with fear.”
ATF Special Agent in Charge Hugo Barrera stated, “Today’s conviction demonstrates law enforcement’s commitment to disrupt violent criminals that are affecting the quality of life of our law abiding citizens. This illustrates the collaborative teamwork of federal, state and local law enforcement working together to combat violent crime and make our communities safer.”
Miami Police Department Chief of Police Rodolfo Llanes added, “These convictions are a testament to what we can achieve in our efforts to reduce violent crimes, as well as, the surge of dangerous narcotics and illegal weapons when we partner with the community and other law enforcement agencies at all levels, local, state and federal. Together we will make Miami a safer place to live, work, play and visit.”
The investigation identified the convicted gang members, including Chacon, the group’s leader, and their associates with participation in armed street-level drug trafficking. Prior to the jury verdict, the following defendants pled guilty to participating in the gang’s drug trafficking conspiracy:
Dayaan Zequera a.k.a “Dsbf BMT Kid,” 24, Angel Martinez a.k.a “Telly” a.k.a “Tboy,” 22, Miguel Rodriguez a.k.a “Fat Boy,” a.k.a “Barba,” 19, Kevin Diaz, 19, Nadim Guzman, 21, Raymond Moore a/k/a “Flaco,” a/k/a “Dinero Banks,” a.k.a “Young Gunna,” 22, Luis Salas a/k/a “Chico Black,” 22, Christian Ramirez a.k.a “Joker”, 31, Carlos Tinoco a/k/a “C-Lo,” 22, Steven Castro a/k/a “YM Stevo,” 23, Fernando Roberto Darce a/k/a “Bonesz”, 20, and
Mario Balboa, 29, all of Miami.The defendants face minimum mandatory terms from 10 years to life in prison, with maximum statutory terms varying from 20 years to life in prison for the aforementioned charges.
On June 29, 2015 the following defendants face trial on charges relating to the investigation:
Alioth Salas, a/k/a “Ali,” 27, Joseph Thompson a/k/a “Joe,” 29, Dwight Forte, 22, and
Joel Diaz a/k/a “Borie,” a/k/a “El Paisa,” and a/k/a “Buom Clock,” 25.Mr. Ferrer commended the investigative efforts of ATF and MPD’s Gang Intelligence Detail through their participation in the Miami-Dade County Multi-Agency Gang Task Force. Mr. Ferrer also thanked the Miami-Dade Police Department’s Robbery Bureau and Street Gang Section, the MPD’s Little Havana Problem Solving Team, the MPD’s Robbery Unit, the Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit and the Miami-Dade State Attorney’s Gang Strike Force. This case is being prosecuted by Assistant U.S. Attorney’s Ignacio J. Vàzquez, Jr. and Ilham Hosseini.
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.
Four Elkins area men arrested on federal drug trafficking chargesRead the Press Release
ELKINS, WEST VIRGINIA – Four Elkins area men were arrested today after a federal grand jury returned an indictment charging them with marijuana and oxycodone trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Chad Allen Workman, 37, of Beverly, West Virginia, Charles Shawn Shannon, 54, of Belington, West Virginia, Roy Melvin Isner, 62, and Mark W. Lambert, 39, both of Elkins, are alleged to have operated an extensive and long-term drug trafficking operation within the Northern District of West Virginia. Workman is further alleged to have utilized the unlawful proceeds of the drug trafficking operation to purchase vehicles, real estate, and person vacations.
The defendants are each charged with one count of “Marijuana Conspiracy,” for which they each face up to five years in prison and a fine of up to $250,000.00.
Workman is further charged with: • One count of “Money Laundering,” for which he faces up to 20 years in prison and a fine of up to $500,000.00, • One count of “Maintaining Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00, • One count of “Possession with Intent to Distribute Marijuana,” for which he faces up to five years in prison and a fine of up to $250,000.00, • One count of “Possession of an Unregistered Machine Gun,” for which he faces up to five years in prison and a fine of up to $250,000.00, and
• One count of “Possession of a Firearm by an Unlawful Drug User,” for which he faces up to 10 years in prison and a fine of up to $250,000.00.
Lambert is further charged with: • One count of “Maintaining Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00, • Four counts of “Distribution of Marijuana.” He faces up to five years in prison and a fine of up to $250,000.00 on each count.
Isner is further charged with: • One count of “Maintaining Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00, • One count of “Possession with Intent to Distribute Marijuana,” for which he faces up to five years in prison and a fine of up to $250,000.00, • One count of “Possession with Intent to Distribute Oxycodone,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.
Shannon is further charged with two counts of “Distribution of Marijuana.” He faces up to five years in prison and a fine of up to $250,000.00 on each count.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
The defendants charged in the present indictment are alleged to have worked closely with other individuals previously charged with drug trafficking in the Northern District of West Virginia. Chad Frederick Arbogast, 36, of Belington, West Virginia, was sentenced to 46 months in prison for selling oxycodone in Barbour County, West Virginia. Chad Preston, 35, of Coalton, West Virginia, was sentenced to three years of probation for oxycodone trafficking in Elkins.
A federal grand jury returned an indictment in December 2014 charging four individuals for their role in a scheme to procure oxycodone from sources in Detroit, New Jersey, and Florida for redistribution and sale in West Virginia. Jonathan Paul Calain, 37, of Elkins, pled guilty in February 2015 to one count of “Conspiracy to Distribute Oxycodone,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00. Matthew L. Cordero, 32, of Vineland, New Jersey, pled guilty in February 2015 to “Distribution of Oxycodone” for which he faces up to 20 years in prison and a fine of to $1,000,000.00. Gregory Stephen Scott, 34, of Beverly West Virginia, pled guilty in February 2015 to one count of “Distribution of Oxycodone – Aiding and Abetting,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00. Stevie Lea Sharp, 28, of Coalton, West Virginia, pled guilty in February 2015 to one count of “Distribution of Oxycodone,” for which she faces up to 20 years in prison and a fine of up to $1,000,000.00.
In another related matter, a federal grand jury returned an indictment in December 2014 charging Arthur Woodrow Pritt, Jr., 38, of Archer, Florida, with transporting marijuana from Florida into West Virginia. He pled guilty in February 2015 to one count of “Conspiracy to Distribute Marijuana,” for which he faces up to five years in prison and a fine of up to $250,000.00.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force is leading the inquiry. The Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police Bureau of Criminal Investigation, and the Upshur County Sheriff’s Office are also investigating.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.Former Navy Top Gun Instructor Found Guilty on Charges of Production Child Pornography and Obstruction of JusticeRead the Press Release
NORFOLK, Va. – Daniel Chase Harris, 31, of Virginia Beach, Virginia, was convicted today by a federal jury after a 12-day trial on 31 counts including production of child pornography, use of a facility of interstate commerce to entice a minor to engage in criminal sexual activity, receipt of child pornography, transportation of child pornography, possession of child pornography and obstruction of justice.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; Randy C. Krantz, Commonwealth’s Attorney for Bedford County; and Bedford County Sheriff Mike Brown of the Southern Virginia Internet Crimes Against Children Taskforce, made the announcement after the verdict was accepted by U.S. District Judge Mark S. Davis.
Harris was indicted by a federal grand jury on a superseding indictment on September 17, 2014. According to court records and the evidence at trial, Harris was a Lieutenant in the U.S. Navy and a Navy Top Gun instructor stationed at Naval Air Station Oceana and was originally arrested by Bedford County Sheriff’s Office in November 2013. The investigation and evidence at trial revealed that Harris posed online as a teenage boy and would convince young teen girls between the ages of 12 and 17 to send him risqué pictures of themselves. He then extorted the girls to send him additional, sexually graphic and explicit images of themselves or he threatened them with posting the images online or sending the images to family or friends. Nine victims were involved in this case, three of whom are from Virginia.
Harris faces a maximum penalty of life in prison when sentenced on July 13, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Homeland Security Investigations and the Southern Virginia Internet Crimes Against Children Task Force (SOVA ICAC) led the investigation in this case. Assistant U.S. Attorney Elizabeth M. Yusi and Special Assistant U.S. Attorney Wes Nance, Deputy Commonwealth’s Attorney for Bedford County, are prosecuting the case.A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-76.
Former D.C. Government Employee Pleads Guilty to Using Government-Issued Credit Card for Personal Purposes Admits Making over 200 Purchases of Gasoline for Personal Vehicle, Totaling over $11,000Read the Press Release
WASHINGTON – Kimberley Pinkney, a former inspector with the District of Columbia Department of Fire and Emergency Medical Services (DCFEMS), pled guilty today to using her government-issued credit card to purchase over $11,000 in gasoline for her personal vehicle, announced U.S. Attorney Ronald C. Machen Jr. and Robert C. Erickson, Deputy Inspector General of the U.S. General Services Administration (GSA).
Pinkney, 45, of Washington, D.C., pled guilty in the Superior Court of the District of Columbia to a charge of second-degree felony fraud. The Honorable Juliet McKenna scheduled sentencing for May 5, 2015. The charge carries a statutory maximum of three years in prison and potential financial penalties. The plea agreement calls for Pinkney to make full restitution.
Pinkney was arrested in January 2015, following an investigation by the Office of the Inspector General for the U.S. General Services Administration (GSA). She has since resigned from the D.C. Department of Fire and Emergency Medical Services.“This D.C. employee ripped off $11,000 from the taxpayer, one tank of gas at a time,” said U.S. Attorney Machen. “A government job is an opportunity to serve the public, not to rob them blind. I want to thank the agents who dug through the financial records to uncover this fraud.”
“I appreciate the hard work of our special agents on this case,” said Deputy Inspector General Erickson. “People cannot steal from American taxpayers and expect to get away with it.”According to a proffer of facts submitted at today’s plea hearing, GSA administers the leases of over 150,000 government vehicles, including 41 to DCFEMS. Each vehicle is assigned a credit card to be used to purchase fuel and pay for other normal vehicle-related expenses, such as car washes and routine maintenance. Charges incurred on the cards are paid with federal funds by GSA. Pinkney was provided with such a credit card for the vehicle she used as an inspector with DCFEMS. Her conduct came to light in the fall of 2014 during a proactive review of purchases associated with the government credit cards. Investigators flagged suspicious activity, such as multiple same-day purchases of gasoline and purchases of more fuel than the vehicle’s tank capacity. A majority of these purchases were made in Southeast Washington.
All told, the investigation revealed that, during the time period of July 7, 2011 through Dec. 10, 2014, Pinkney purchased gasoline at three Southeast Washington gas stations on more than 200 occasions for charging totaling $11,334 for her own personal purposes.
In announcing the plea, U.S. Attorney Machen and Deputy Inspector General Erickson commended those who investigated the case, including the team led by Special Agent in Charge Gerald Garren. They also expressed appreciation for the assistance provided by the Internal Affairs Unit and the command staff of the D.C. Department of Fire and Emergency Medical Services. Finally, they acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kristy Penny and Assistant U.S. Attorney Stephanie G. Miller, who is prosecuting the case.
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Former Customs and Border Protection Officer Admits Leading Interstate Methamphetamine Distribution RingRead the Press Release
NEWARK, N.J. - A former officer with U.S. Customs and Border Protection (CBP) today admitted coordinating shipments of crystal methamphetamine from interstate suppliers and providing them to retailers in North Jersey, U.S. Attorney Paul J. Fishman announced.
John Freehauf, a/k/a “Johnnie Rocket,” 37, of Jersey City, New Jersey, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with one count of knowingly and intentionally conspiring with others to distribute 50 grams or more of methamphetamine.
According to documents filed in this case and statements made in court:Individuals operating in Arizona, California, Nevada and elsewhere sent parcels containing large quantities of methamphetamine through the U.S. mail to addresses provided by New Jersey-based conspirators, who would then repackage the methamphetamine and distribute it to lower level dealers in and around New Jersey. Conspirators working for the U.S. Postal Service would sometimes supervise receipt of the methamphetamine-laden parcels to ensure successful delivery.
Freehauf admitted that between July 2013 and June 2014, he conspired with others to distribute an average of three to five pounds of crystal methamphetamine per month in North Jersey. Freehauf admitted that he arranged the shipments from California, Arizona and elsewhere and repackaged the drugs for distribution to lower level dealers.
Freehauf and the other defendants were charged by complaint on June 18, 2014, with conspiracy to distribute methamphetamine:
NameAge
Residence
37
Jersey City
Benjamin Navarro
44
Jersey City
Maria Lisa Pascual
37
North Bergen, N.J.
Arnold Balagtas
55
Jersey City
Margaret Tiangco
39
Jersey City
Javier Diaz
31
Los Angeles, Calif.
Candace Healy
21
Fresh Meadows, N.Y.
Ricce Anciado Jr.
44
Union, N.J.
Stephanie Luna
36
Bergenfield, N.J.
Benedict Cipriano
52
Jersey City
Ricky Tulud
44
Belleville, N.J.
Janice Vidallon
32
Belleville
Ryan Bontempi
35
Phoenix, Ariz.
Howard Taylor
49
Phoenix
Carlos Asturias
43
Clifton, N.J.
The conspiracy charge to which Freehauf pleaded guilty carries a mandatory minimum penalty of 10 years in prison and a maximum of life in prison and a $10 million fine. Sentencing is scheduled for July 1, 2015.
Diaz, Anciado, Cipriano, Tulud, Bontempi, and Asturias have also pleaded guilty to their roles in the conspiracy. Charges against Navarro, Pascual, Tiangco, Healy, Luna, Vidallon, and Taylor are still pending. The charges and allegations against them are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski; U.S. Postal Inspectors under the direction of Inspector in Charge Maria L. Kelokates; law enforcement officers from the N.J. National Guard Counter Drug Task Force, under the direction of the Adjutant General, Brig. Gen. Michael L. Cunniff; the N.J. State Police, under the direction of Superintendent Rick Fuentes; the Edison Police Department, under the direction of Chief Thomas Bryan; and the Jersey City Police Department, under the direction of Chief Robert Cowan, with the investigation.
The government is represented by Assistant U.S. Attorney Adam N. Subervi of the U.S. Attorney’s Organized Crime Drug Enforcement Task Force (OCDETF) unit in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.15-085
Defense counsel: Joseph R. Rubino Esq., West Orange, New JerseyFlorida Home Health Care Company Agrees to Pay $1.1 Million to Resolve False Claims Act AllegationsRead the Press Release
Recovery Home Care Inc., Recovery Home Care Services Inc. (collectively Recovery Home Care) and National Home Care Holdings LLC have agreed to pay $1.1 million to resolve allegations that the Recovery Home Care entities violated the False Claims Act by improperly paying doctors for referrals of home health care services provided to Medicare patients, the Department of Justice announced today. The Recovery Home Care entities provide home health care services to Medicare beneficiaries and were purchased by National Home Care Holdings LLC in 2012, after the conduct addressed by the settlement occurred.
“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
From 2009 through 2012, Recovery Home Care, headquartered in West Palm Beach, Florida, allegedly paid dozens of physicians thousands of dollars per month to perform patient chart reviews. According to the government’s lawsuit, the physicians were over-compensated for any actual work they performed and, in reality, payments to the physicians were used to induce them to refer their patients to Recovery Home Care, in violation of the Anti-Kickback Statute and the Stark Law.
“Inducements of this kind are designed to improperly influence a physician’s independent medical judgment,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “This lawsuit and today’s settlement attests to our office’s on-going commitment to safeguard federal health care program beneficiaries from the effects of such illegal conduct.”
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids a home health care provider from billing Medicare for certain services referred by physicians who have a financial relationship with the entity.
The settlement partially resolves allegations made in a lawsuit filed in federal court in Tampa, Florida, by Gregory Simony, a former employee of Recovery Home Care. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in part in this case. Simony will receive $198,000 of the recovered funds. The government continues to litigate this case against Recovery Home Care’s previous owner, Mark Conklin.
This settlement 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 a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida and HHS-OIG.
The case is captioned United States ex rel. Simony v. Recovery Home Care, et al., Case No. 8-12-cv-2495-T-36TBM (M.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida Home Health Care Company Agrees to Pay $1.1 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – Recovery Home Care Inc., Recovery Home Care Services Inc. (collectively Recovery Home Care) and National Home Care Holdings LLC have agreed to pay $1.1 million to resolve allegations that the Recovery Home Care entities violated the False Claims Act by improperly paying doctors for referrals of home health care services provided to Medicare patients, the Department of Justice announced today. The Recovery Home Care entities provide home health care services to Medicare beneficiaries and were purchased by National Home Care Holdings LLC in 2012, after the conduct addressed by the settlement occurred.
“Health care providers that attempt to profit by providing illegal inducements will be held accountable,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “We will continue to advocate for the appropriate use of Medicare funds and the proper care of our senior citizens.”
From 2009 through 2012, Recovery Home Care, headquartered in West Palm Beach, Florida, allegedly paid dozens of physicians thousands of dollars per month to perform patient chart reviews. According to the government’s lawsuit, the physicians were over-compensated for any actual work they performed and, in reality, payments to the physicians were used to induce them to refer their patients to Recovery Home Care, in violation of the Anti-Kickback Statute and the Stark Law.
“Inducements of this kind are designed to improperly influence a physician’s independent medical judgment,” said U.S. Attorney A. Lee Bentley III of the Middle District of Florida. “This lawsuit and today’s settlement attests to our office’s on-going commitment to safeguard federal health care program beneficiaries from the effects of such illegal conduct.”
The Anti-Kickback Statute and the Stark Law are intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare. The Stark Law forbids a home health care provider from billing Medicare for certain services referred by physicians who have a financial relationship with the entity.
The settlement partially resolves allegations made in a lawsuit filed in federal court in Tampa, Florida, by Gregory Simony, a former employee of Recovery Home Care. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in part in this case. Simony will receive $198,000 of the recovered funds. The government continues to litigate this case against Recovery Home Care’s previous owner, Mark Conklin.
This settlement 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 a total of more than $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Middle District of Florida and HHS-OIG.
The case is captioned United States ex rel. Simony v. Recovery Home Care, et al., Case No. 8-12-cv-2495-T-36TBM (M.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Federal Jury Convicts St. Croix Woman of Robbery ChargesRead the Press Release
St. Croix, USVI – After a five-day jury trial, a federal jury on March 6, 2015 convicted St. Croix resident Ketisha Isles, 23,of Conspiracy to Interfere with Commerce by Robbery and Interference with Commerce by Robbery, announced United States Attorney Ronald W. Sharpe, Federal Bureau of Investigation Special Agent-in-Charge Carlos Cases, and Virgin Islands Police Commissioner Delroy Richards.
Evidence presented at trial established that on June 17, 2013, after Isles was buzzed into Perfection Jewelry Store, she held the door open for three masked gunmen to enter. Once in the store, one of the gunmen hit an employee several times with a gun. Another man stood at the door while the other two went behind the counter, broke the display case and stole approximately $100,000.00 worth of 14 carat gold jewelry. The evidence also showed that Isles knew of the robbery before it happened and agreed to hold the door open for the gunmen.
“The U.S. Attorney’s Office is committed to working with our federal and local partners to ensure that violent offenders are brought to justice,” U.S. Attorney Sharpe said. Isles faces a maximum penalty of 20 years in prison for each of the two counts for which she was convicted. She was released on a $25,000 unsecured bond and remains free pending sentencing. No sentencing date has been set.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rhonda Williams-Henry.
Essex County, New Jersey, Man Admits Bloomfield, New Jersey Bank RobberyRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted robbing the PNC Bank in Bloomfield, New Jersey, in June 2014, U.S. Attorney Paul J. Fishman announced.
Kenneth Grant, 47, of East Orange, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of bank robbery.According to documents filed in this case and statements made in court:
On June 13, 2014, Grant entered the PNC Bank in Bloomfield and wrote: “I HAVE GUN 100, 20, 50 NO DIE (sic) PACKS” on the back of a deposit slip. Grant handed the note to a teller, demanded money, and told her not to trigger an alarm or he would shoot her. The teller gave Grant money, and he fled the bank.
The bank robbery charge carries a maximum statutory penalty of 20 years in prison and a $250,000 fine or twice the gain to the defendant or loss to any victims. Sentencing is scheduled for June 15, 2015.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and officers of the Bloomfield Police Department, under the direction of Chief Randy Foster, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney David W. Feder of the U.S. Attorney’s Office General Crimes Unit in Newark.
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Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, NewarkGrant, Kenneth Indictment
Escondido Resident Sentenced for Bulk Cash SmugglingRead the Press Release
FRESNO, Calif. — Martin Rojas-Cuamba (Rojas), 46, of Escondido, was sentenced today to 364 days in custody for smuggling cash proceeds from the cultivation of marijuana in Tulare, Kern, and San Diego Counties, U.S. Attorney Benjamin B. Wagner announced. U.S. District Judge Lawrence J. O’Neill also ordered the forfeiture of $53,750 in drug proceeds that was seized from Rojas’ residence.
According to court documents, Rojas intended to smuggle $88,950 in cash from the United States to Mexico to evade the currency transaction reporting requirement. Rojas was connected to several marijuana cultivation operations on agricultural lands in Terra Bella and Bakersfield. During a search of his residence, law enforcement officers seized $53,750 in cash. During a search of the cultivation operation in Terra Bella, law enforcement officers also seized records showing wire transfers of money to Mexico from Rojas’ address in Escondido.
This case was the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, the Tulare County Sheriff’s Office, the Kern County Sheriff’s Office, the Ventura County Sheriff’s Office, the San Luis Obispo County Sheriff’s Office, and the Escondido Police Department. Assistant United States Attorney Karen Escobar prosecuted the case.
Eagle Butte Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of assaulting a Cheyenne River Tribal Officer, was sentenced on March 4, 2015, by U.S. Magistrate Judge Mark A. Moreno.
Lucas Curley, age 24, was sentenced to 5 months in custody, 3 months of home confinement, 1 year of supervised release, and a $25 special assessment to the Federal Crime Victims Fund.
Curley was indicted by a federal grand jury on October 15, 2014, for Assaulting, Resisting, or Impeding an Officer Involving Physical Contact. He pled guilty to Assaulting, Resisting, and Impeding an Officer on December 8, 2014.
The conviction arose from a March 2014 incident at the Walter Miner Law Enforcement Center in Eagle Butte, in which Curley forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a Cheyenne River Sioux Detention Officer, while that officer was employed under a contract with the Bureau of Indian Affairs, and while the officer was engaged in the performance of his official duties.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Division. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Curley was immediately turned over to the custody of the U.S. Marshals Service to begin serving his sentence.
Eagle Butte Man Charged with Aggravated Sexual Abuse of A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for two counts of Aggravated Sexual Abuse of Children.
Leonard Rondeau, age 39, was indicted on February 11, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on February 17, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, a minimum of 5 years up to life of supervised release, and a $100 special assessment. Restitution may also be ordered.
The Indictment alleges that between April 11, 2003, and December 22, 2005, Rondeau engaged in, or attempted to engage in, a sexual act with two different children under the age of 12.
The charges are merely an accusation and Rondeau is presumed innocent until and unless proven guilty.The investigation is being conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Rondeau was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Denver Felon Sentenced to 16 Years in Federal Prison for Gun and Drug DistributionRead the Press Release
DENVER – A Denver man was sentenced to serve 16 years in federal prison last Friday for gun and drug charges, the U.S. Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced. Maurice Alyn Mickling, age 28, of Denver, was ordered to serve 192 months in prison, followed by 4 years on supervised release by U.S. District Court Judge Raymond P. Moore. Mickling appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Mickling was indicted by a federal grand jury in Denver on January 7, 2014. He was found guilty of gun and drug distribution charges following a the three-day jury trial in front of Judge Moore on August 27, 2014. The jury deliberated for approximately three hours before delivering their verdicts. He was sentenced on Friday, March 3, 2015.
According to court documents as well as facts presented during the trial, in December of 2013 Mickling, who was wanted for parole violations, was located at the Ramada Inn on Colfax and Marion. The Denver SWAT Team was called because of Mickling’s prior violent felony convictions and because he was believed to be armed. As SWAT arrived, Mickling saw the team, and immediately fled on foot. Mickling got to the corner of the parking lot, threw a loaded handgun high into the air over the fence, dropped a toiletry style bag, and then jumped the fence. Mickling threw the firearm so far that it flew across the street and struck an innocent bystander in the leg.Once Mickling was over the fence, he slipped on some ice, and was immediately apprehended by officers. Inside the dropped bag was 3.6 grams of crack and a digital scale, which is traditionally indicative of drug distribution. He also had $756 in cash on his person.
“Defendant Mickling, who had a long criminal history, including a conviction for a crime of violence, was armed with a firearm, posing a serious danger to the community,” U.S. Attorney John Walsh said. “The 16 year prison sentence means this defendant will not endanger his community for a long time to come.”
“Mr. Mickling is an example of the worst of the worst kind of criminal and today’s sentencing reflects that,” said Luke Franey, Special Agent in Charge, ATF Denver Field Division. “With multiple violent felonies on his record, he continued to possess firearms and endanger the public.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Denver Police Department, and the Colorado Department of Corrections, Division of Adult Parole.
This case was prosecuted by Assistant U.S. Attorneys Jeremy Sibert and David Tonini.
Damion Richards and Delroy Williams Arraigned on Charges of Money Laundering and Oxycodone TraffickingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Damion Richards, 34, and Delroy Williams, 38, both of Brooklyn, New York, were arraigned today on charges of money laundering and conspiring to distribute oxycodone. A federal grand jury sitting in Burlington handed down the three-count indictment.
At the arraignment before the Honorable John M. Conroy, both men pled not guilty to the charges. Judge Conroy also released both men on conditions restricting their travel to the states of Vermont and New York.According to prosecutors, Richards and Williams are accused of working with Caryn Bartlett, of Winooski, to sell significant quantities of oxycodone in Chittenden County from about March 2013 through late October of 2013. Bartlett served as their Vermont distributor and funneled drug proceeds to Richards and Williams by depositing funds in their bank accounts. Bartlett has already pled guilty in federal court to conspiracy to distribute oxycodone.
The indictment charging Richards and Williams with drug trafficking and money laundering is an accusation only; they are presumed innocent unless and until proven guilty. If convicted on the drug trafficking charge, they face up to 20 years in prison. The money laundering counts carry also carry a maximum penalty of 20 years= imprisonment. The actual sentence, in the event of conviction, will be determined by the Court with reference to the advisory Federal Sentencing Guidelines.
The investigation was led by the Federal Bureau of Investigation.Assistant United States Attorney Christina E. Nolan is handling the prosecution. Richards is represented by Jason Sawyer, Esq., of Burlington. Williams is represented by Robert Hemley, Esq., also of Burlington.
Credit Union Employee Sentenced for Stealing $400,000Read the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Maxime Maiga, age 37, of Montgomery Village, Maryland, today to two years and a day followed by two years of supervised release for wire fraud and aggravated identity theft. Judge Grimm also entered an order that Maiga forfeit $11,000 and pay $400,000 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office.
According to his plea, Maiga worked as a communication center associate at a Washington, D.C. credit union that provides financial services to individuals and their families associated with the World Bank Group and the International Monetary Fund, and offers consumer banking services.
On January 8, 2013, Maiga fraudulently accessed and viewed identification documents and financial information of two account members of the credit union who were foreign nationals. A few days later, Maiga again fraudulently accessed the victim members’ identification documents and printed one of the victim’s passport and membership eligibility form. On January 22, 2013, Maiga sent the identity documents to a co-conspirator, who faxed a letter to the credit union, bearing a forged signature of the victim and an altered copy of the victim’s diplomatic passport. The letter requested the password for the victims’ credit union online banking account. Maiga and his co-conspirators used the password for online access to change the victims’ email address and phone number.
On February 12, 2013, Maiga fraudulently asked another credit union employee to access and print one of the victim’s tax withholding forms and the victims’ signature cards. The requested documentation was provided to Maiga. The next day, he and his co-conspirators fraudulently requested monthly automatic recurrent wire transfers of $200,000 each from the victims’ credit union account to a co-conspirator’s account. On February 14, 2013, a conspirator used the documentation Maiga had fraudulently obtained to pose as one of the victims and obtain $200,000 from the victims’ account. An additional $200,000 was transferred on March 1, 2013 as a result of the fraudulent request for automatic recurrent transfers.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorney Kelly O. Hayes, who prosecuted the case.
Co-Defendants in Marriage Fraud Scheme Plead GuiltyRead the Press Release
Baltimore, Maryland – Mucahid Calisir, age 29, a Turkish citizen who had been residing in Millsboro, Delaware; and Darya Tarasova, age 26, a Russian citizen who had been residing in Cambridge, Maryland, pleaded guilty to marriage fraud and passport fraud; and co-defendant Evgeniya Yarina, age 27, a Russian citizen currently residing in New York, pleaded guilty to conspiracy to commit marriage fraud on Friday, March 6, 2015, in connection with a scheme to obtain beneficial immigration status leading to U.S. citizenship. U.S. District Judge James K. Bredar sentenced Calisir to two months in prison followed by three years of supervised release.
Co-defendant Aleksandr Mavrin, age 27, a Russian citizen who had been residing in Frankford, Delaware, previously pleaded guilty to conspiracy to commit marriage fraud and was sentenced on March 2, 2015 to time served followed by one year of supervised release.
Calisir, Mavrin and Tarasova consented to deportation and will be removed from the United States. As a result of her conviction, Yarina may be subject to deportation.
The guilty pleas and sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Field Office Director Dorothy Herrera-Niles of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO); Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS), Baltimore District Office.
According to their plea agreements, Calisir entered the United States in 2008, Yarina and Mavrin entered the United States in 2009, and Tarasova entered the United States in 2010. Calisir Tarasova, Yarina, and Mavrin conspired to enter into marriages with U.S. citizens solely for the purpose of obtaining immigration status to which they would not otherwise be entitled. Calisir and his co-defendants assisted each other in locating and identifying United States citizens with whom they could enter into these fraudulent marriages, generally in exchange for some economic benefit to the United States citizen.
For example, on December 30, 2010, Calisir entered into a fraudulent marriage with S.O., a United States citizen. On April 11, 2011, co-defendant Tarasova married E.C., a United States citizen and co-defendant Mavrin married K.M., a United States citizen, on September 26, 2012, after being introduced to K.M. by Calisir. Yarina married H.P., a United States citizen on November 30, 2012. Following each of their marriages, the defendants submitted forms and applications to DHS, Immigration and Customs Enforcement, in which each fraudulently represented that their marriage to the U.S. citizen was a legitimate marriage when it was actually entered into so that the defendants each could receive beneficial immigration status.
In June 2013, Tarasova gave birth to a baby girl. In October 2013 Tarasova submitted an application for a United States passport for the baby, which contained a false statement that E.C. was the father of the child, when in reality Calisir was the father of the baby. Calisir assisted Tarasova in the submission of documents in support of the baby’s U.S. passport application.
Judge Bredar scheduled sentencing for Tarasova on June 1, 2015 at 10:30 a.m., and for Yarina on May 27, 2015 at 10:00 a.m.
United States Attorney Rod J. Rosenstein commended ICE ERO, HSI-Baltimore, the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service and U.S. Citizenship and Immigration Services for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Ayn B. Ducao, who is prosecuting the case.
Cheylan woman sentenced for heroin distributionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Jennifer McClure, 31, of Chelyan, West Virginia, was sentenced today in federal court in Charleston to time served from November 25, 2014 to the present, followed by three years of supervised release. McClure previously pled guilty in December of 2014, admitting that she sold heroin to a confidential informant working with the Kanawha County Sheriff’s Department. The drug deal took place at McClure’s home on Firefly Lane in Chelyan.
The case was investigated by the Kanawha County Sheriff’s Department and was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Assistant United States Attorney John Frail is responsible for the prosecution.
Carlisle Man Sentenced for Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Mark Allen Parks, Jr., age 34, of Carlisle, Pennsylvania was sentenced by Chief Judge Christopher C. Connor to 78 months in federal prison on drug trafficking charges.
According to United States Attorney Peter Smith, Parks supplied heroin to individuals in the Franklin and Cumberland County areas from October 2013 through April 2014.
Parks was indicted by a grand jury in May 2014 and plead guilty in August 2014.
This case was jointly investigated by the Drug Enforcement Administration, Shippensburg Police Department, the Pennsylvania State Police, the Cumberland County Drug Task Force, the Cumberland County District Attorney’s Office and the Franklin County District Attorney’s Office. This case was prosecuted by Assistant United States Attorney Meredith A. Taylor.
Cahokia Man Sentenced to Prison for Gun PossessionRead the Press Release
James B. Moore, 54, of Cahokia, IL, was sentenced Friday in the U.S. District Court for the Southern District of Illinois to 46 months in prison and 3 years of supervised release on one count of Possession of a Weapon by a Felon, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
Moore had been in possession of a .357 Magnum and had previously been convicted of Armed Robbery. He has been in custody since June 20, 2014.
The case was investigated by the Cahokia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant United States Attorney Laura Reppert.
Bookkeeper Pleads Guilty to Stealing over $179,000 from Her EmployerRead the Press Release
Greenbelt, Maryland – Jessica Lee Warner, age 39, of Baltimore, pleaded guilty today to wire fraud and aggravated identity theft.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
According to her plea, Warner was the bookkeeper for a company located in Montgomery County, responsible for electronically submitting employee payroll information to a payroll processing service. From 2007 to December 2012, Warner fraudulently used her position as a bookkeeper to increase her salary, and write checks from her employer’s bank accounts to herself and others, forging the signature of an individual who had signatory authority on the company’s checking accounts. Warner deposited the forged checks into her own bank account.
Warner has agreed to pay restitution of at least $179,647.16, the amount she stole from her employer.
Warner faces a maximum sentence of 20 years in prison and a $250,000 fine for wire fraud, and a mandatory minimum of two years in prison consecutive to any other sentence for aggravated identity theft. U.S. District Judge Paul W. Grimm scheduled her sentencing for August 31, 2015, at 9:30 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service and Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom and Leah Jo Bressack, who are prosecuting the case.
Bakersfield Man Sentenced to over 14 Years in Prison for His Conviction in A Large Methamphetamine ConspiracyRead the Press Release
Fresno, California –Miguel Marquez, 30, of Bakersfield, was sentenced today to 14 years and eight months in prison for conspiracy to distribute and possess with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced. U.S. District Judge Lawrence J. O’Neill also ordered Marquez to forfeit over $30,000.
According to court documents, an investigation indicated that on October 22, 2014, Marquez would be receiving a shipment of crystal methamphetamine from his source of supply. On that day, task force agents set up surveillance at Marquez’s residence. Agents observed Marquez meet with two individuals who drove to Marquez’s residence from the Los Angeles area to deliver the suspected narcotics. Agents arrested Marquez and the two individuals identified as Luis Alfonso Mendivil, 23, of Riverside, and Jonathen Leyva, 28, of Rialto. Subsequent searches resulted in the seizure of $30,630 from Mendivil and Leyva’s vehicle, approximately 2.6 kilograms of crystal methamphetamine from inside Marquez’s home, and a firearm. In addition to the crystal meth seized from Marquez’s residence, officers also located a stash location just outside of Marquez’s home where officers seized a stolen loaded machine pistol and approximately 1.9 kilograms of additional crystal methamphetamine.
Mendivil and Leyva pleaded guilty to use of an interstate facility to aid racketeering, and were sentenced to five years in prison.
This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Bakersfield Man Sentenced to 5 Years and 9 Months in Prison for Being A Felon in Possession of A FirearmRead the Press Release
FRESNO, Calif. –Vincent Deleon, 32, of Bakersfield, was sentenced today by United States District Court Judge Lawrence J. O’Neil to five years and nine months in prison for possession of a firearm by a previously convicted felon, United States Attorney Benjamin B. Wagner announced.
On November 6, 2013, the FBI’s Violent Crime Task Force received information that Deleon, who was wanted on two Kern County felony warrants, was in an apartment on Monterey Street in Bakersfield. Task force agents set up surveillance and when Deleon came out of the residence, they identified themselves and told him to stop. Deleon immediately fled from the agents and in his flight, threw a Smith & Wesson 9 mm pistol over a fence. Agents arrested Deleon and found the firearm at the adjacent property.
This case was the product of an investigation by the Violent Crime Task Force, which includes Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Kern County Probation Office. Assistant U.S. Attorney Brian K. Delaney prosecuted the case.
Attorney Enters Guilty Plea in Investment Fraud CaseRead the Press Release
Contact Person: T. DeWayne Pearson (803) 929-3000
Columbia, South Carolina - United States Attorney Bill Nettles stated today that Michael Mark McAdams, age 43, of Myrtle Beach, and Robert Dane Freeman, age 69, of Greenville, SC, have entered guilty pleas to conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349. According to facts presented during the guilty plea hearing, McAdams and Freeman solicited millions of dollars from investors in connection with a scheme that purported to double or triple the victims’ money using a series of overseas banking transactions. McAdams was working as an attorney in Myrtle Beach, South Carolina and solicited clients into the fraudulent scheme. McAdams and Freeman used the funds invested by the victims for personal expenses. McAdams also used funds invested by new victims to make lulling payments in order to hide the scheme from previous victims. McAdams has been suspended from the practice of law by the South Carolina Supreme Court. Sentencing in the case has not yet been scheduled, but McAdams and Freeman face a maximum penalty of twenty years of imprisonment and a fine of $250,000. The case was investigated by Special Agents with the Federal Bureau of Investigations (FBI). The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.####
Albuquerque Barber Pleads Guilty to Defrauding Federal Food Stamp ProgramRead the Press Release
ALBUQUERQUE – Joshua Moya, 33, of Albuquerque, N.M., entered a guilty plea this morning to defrauding the Supplemental Nutrition Assistance Program, more commonly known as the Food Stamp Program. Under the terms of his plea agreement, Moya will be sentenced to six months of imprisonment followed by a term of supervised release to be determined by the court. Moya also will be required to pay $2444.00 in restitution.
Moya is one of six Albuquerque residents charged with defrauding the Food Stamp Program in a 32-count indictment that was filed in Aug. 2014. The indictment alleged that between Dec. 2006 and Feb. 2010, Joseph Martin Padilla, 33, conspired with Moya, Sergio Escobedo, 36, Veronica Hernandez, 44, Justin Quintana, 28, and Wilfredo Lopez, 46, conspired to defraud the United States through the unauthorized use of Food Stamp benefits, which are currently called Supplemental Nutrition Assistance Program (SNAP) benefits. During this time, Padilla worked as a Family Assistance Analyst for the Income Support Division of the New Mexico Human Services Department where he allegedly was responsible for determining applicants’ eligibility and benefit level for SNAP benefits.
According to the indictment, SNAP is funded by the U.S. Department of Agriculture and is administered by the States. The program was created to alleviate hunger and malnutrition, and permits low income households to obtain more nutritious diet by increasing the food purchasing power for eligible households. In New Mexico, individuals qualify to participate in SNAP based on income and need by completing an application with the Income Support Division of the New Mexico Human Services Department. Once an applicant is deemed eligible for SNAP benefits by a Family Assistance Analyst, the Analyst establishes a SNAP account in the applicant’s name and electronic benefit transfers (EBT), which are determined based on income, resources and household size, are deposited into the account on a monthly basis.
Count 1 of the indictment alleges that Padilla abused his position as a Family Assistance Analyst to conspire with his co-defendants to defraud the United States through the unauthorized use of SNAP benefits. It alleges that Padilla used names and personal identifiers he obtained from his co-defendants to establish fraudulent SNAP accounts, sometimes in exchange for cash or other things of value. Count 2 alleges that Padilla established a fraudulent SNAP account and used the account to fraudulently obtain approximately $1,468.00 in SNAP benefits for himself. Counts 3 through 27 of the indictment allege that Padilla fraudulently established 25 separate SNAP accounts through which the United States was defrauded of approximately $45,263.00 in SNAP benefits. Counts 28 through 32 allege that Padilla, aided and abetted by his co-defendants, fraudulently established SNAP accounts that were used to fraudulently obtain an aggregate of $12,705.00 in SNAP benefits.
During today’s change of plea hearing, Moya entered a guilty plea to Count 31 of the indictment and admitted that he fraudulently obtained SNAP benefits to which he was not entitled. In his plea agreement, Moya admitted that in early Dec. 2009, Padilla approached him while he was working in an Albuquerque barber shop and provided him with an application to obtain food stamps. Moya admitted knowing that Padilla worked for the State of New Mexico and had the ability to register him for SNAP benefits. Moya completed the application and returned it to Padilla for processing even though he knew that he was not entitled to SNAP benefits. Moya admitted unlawfully receiving $866.00 in SNAP benefits. Moya also admitted providing another application for SNAP benefits to a family member and that his relative unlawfully received $1578.00 in SNAP benefits.
Padilla and his four remaining co-defendants have entered not guilty pleas to the charges in the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Office of Inspector General for the U.S. Department of Agriculture, and is being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
7 March 2015
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla.— The results of the March 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.Christobal Calles-Santos. Alien in the United States After Deportation. Calles-Santos, 23, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March 2013 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Ruth Ann Dameron. Possession of Methamphetamine with Intent to Distribute.Dameron, 49, of Afton, Oklahoma, is charged with possessing methamphetamine with intent to distribute. If convicted, the statutory maximum penalty is 20 years in prison and a $1,000,000 fine. The Bureau of Indian Affairs is the investigating agency.
Ubaldo Esparza-Ortiz. Alien in the United States After Deportation. Esparza-Ortiz, 28, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in November 2013 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Marquillion Glover, Kennan Jackson, Demario Grayson, Rashad Phipps, and Steven Claude President. Drug Conspiracy, Possession with Intent to Distribute Cocaine, Maintaining a Drug Involved Premise, and Felon in Possession of a Firearm.Glover, 31, Jackson, 34, Grayson, 38, Phipps, 35, and President, 23, all of Tulsa, are charged with conspiring to possess cocaine with the intent to distribute. All of the defendants are also alleged to have maintained a house to process and distribute cocaine. Jackson is also charged with possessing a .45 caliber pistol after a prior drug felony conviction. If convicted, the drug conspiracy charge carries a statutory minimum penalty of five years and a maximum penalty of 40 years in prison and a $5,000,000 fine; the possession of cocaine with intent to distribute charge carries a statutory maximum penalty of 20 years in prison and a $1,000,000 fine; the maintaining a drug involved premises charge carries a statutory maximum penalty of 20 years in prison and a $500,000 fine. Jackson also faces a statutory maximum penalty of 10 years in prison and a $250,000 fine for being a felon in possession of a firearm. If convicted, the defendants face a money forfeiture judgment representing proceeds obtained as a result of the drug conspiracy and related offenses. Jackson also faces forfeiture of the firearm. The case is a joint investigation by Federal Bureau of Investigation, the Tulsa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Milton Islam. Theft of Government Property. Islam, 46, of Broken Arrow, Oklahoma, is charged with stealing approximately $282,912 from the U.S. Department of Agriculture Supplemental Nutrition Assistance Program, formerly known as Food Stamps, from May 26, 2011 to July 31, 2014. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The U.S. Department of Agriculture-Office of the Inspector General is the investigating agency.
Cody Douglas Jones. Felon in Possession of a Firearm and Ammunition, Possession of a Firearm in Furtherance of Drug Trafficking Crimes, and Possession of Methamphetamine with Intent to Distribute. Jones, 26, of Joplin, Missouri, is charged with possessing a 9mm caliber pistol and ammunition after prior felony convictions in Missouri and for possessing the weapon in furtherance of a drug trafficking crime. Jones is also alleged to have possessed methamphetamine with the intent to distribute. If convicted, the felon in possession of a firearm and ammunition charge carries a statutory maximum penalty of 10 years in prison and a $250,000 fine; the possession of a firearm in furtherance of drug trafficking crimes charge carries a statutory minimum penalty of five years and up to life in prison and a fine of $250,000; and the possession of methamphetamine with intent to distribute charge carries a statutory maximum penalty of 20 years in prison and $1,000,000 fine. Upon conviction, Jones also faces forfeiture of the firearm and ammunition. The Bureau of Indian Affairs is the investigating agency.
Jhony Morales-Cruz. Alien in the United States After Deportation. Morales-Cruz, 22, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in March 2014 near Eagle Pass, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Isabel Rodriguez-Fraire. Alien in the United States After Deportation. Rodriguez-Fraire, 34, was arrested in Tulsa County and is charged with having returned to the United States unlawfully after being deported in April 2008 near El Paso, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement is the investigating agency.
Jelani Traylamont Sisco. Felon in Possession of a Firearm. Sisco, 39, of Tulsa, is charged with possessing a 9mm caliber pistol after prior felony convictions. If convicted, the statutory maximum penalty is 10 years in prison and a $250,000 fine. The case is a joint investigation by the Federal Bureau of Investigation, the Tulsa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Luis Miguel Velasquez-Cuevas. Misuse of Social Security Number and Alien in the United States After Deportation. Velasquez-Cuevas, 28, is charged with presenting a false social security number with the intent to deceive the Wyandotte Nation Casino and the Internal Revenue Service. Velasquez-Cuevas is also alleged to have returned to the United States unlawfully after being deported in December 2009 near El Paso, Texas. If convicted, the misuse of a social security number charge carries a statutory maximum penalty of five years in prison and a $250,000 fine; and the alien in the U.S. after deportation charge carries a statutory maximum penalty of 20 years in prison and a $250,000 fine. United States Immigration and Customs Enforcement and the Wyandotte Nation Police are the investigating agencies.
6 March 2015
“Queen of Tax Fraud” Resentenced to 21 Years in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody yesterday sentenced Rashia Wilson (29, formerly of Wimauma) to 21 years in federal prison for wire fraud, aggravated identity theft, and being a felon in possession of firearms. The Court also ordered her to forfeit $2,240,096.39, which constitutes the proceeds traceable to the offense.
Wilson pleaded guilty to the felon-in-possession charge in on December 6, 2012, and later to the wire fraud and aggravated identity theft counts pursuant to a plea agreement on April 3, 2013. She was initially sentenced on July 16, 2013, after which she appealed. The Eleventh Circuit Court of Appeals granted her a re-sentencing following the appeal.
According to court documents, from at least April 2009, through September 2012, Wilson and her co-conspirator, Maurice J. Larry, engaged in a scheme to defraud the Internal Revenue Service (IRS) by negotiating fraudulently obtained tax refunds. They did so by receiving U.S. Treasury checks and pre-paid debit cards that were loaded with proceeds derived from filing false and fraudulent federal income tax returns in other individuals' names, without their permission or knowledge. Wilson and Larry filed these tax returns from multiple locations, including Wilson's residence and hotels in the Tampa area. Wilson, Larry, and others then used these fraudulently obtained tax refunds to make hundreds of thousands of dollars of retail purchases, to purchase money orders, and to withdraw cash.
During the course of the investigation, agents searched Wilson's residence and Larry's storage unit, where they recovered thousands of names and social security numbers found in ledgers, and on various other records, including medical billing records. Agents also found high-end accessories, jewelry, and a handgun in Wilson's home. Further, additional reloadable debit cards loaded with fraudulent tax refunds were found in both locations.
Law enforcement also discovered that Wilson, who referred to herself as the "First Lady" and "Queen of Tax Fraud," had spent $30,000 on her daughter's first birthday party and had purchased a 2013 Audi valued at approximately $90,000, both of which had been funded by the proceeds of the tax fraud scheme. The government seized this vehicle and other items during the course of the investigation. The IRS estimates that the actual loss from Wilson and Larry's scheme is at least $3,147,477, and the intended loss was in excess of $11 million.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the United States Secret Service, the United States Postal Inspection Service, the Tampa Police Department, and the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Amanda L. Riedel and Sara C. Sweeney. The appeal was handled by Assistant United States Attorney Peter J. Sholl.