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5 March 2015
Jury Convicts Major Tobacco Distributor in $16 Million Excise Tax Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — After a seven–day trial, a federal jury found Moo Hoon “Steve” Kim, 54, resident of Cypress, Calif., guilty today of mail fraud, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge William B. Shubb.
Between 2006 and 2009, Kim was responsible for bringing over $35 million in untaxed other tobacco products (“OTP”) into the State of California. OTP is any tobacco product other than cigarettes, and consists primarily of cigars, chewing tobacco, and leaf tobacco.
The evidence at trial showed that Kim went to great lengths to conceal his OTP purchases from the State. He used front companies, set up by others at his direction, to disguise his illegal purchases and subsequent sales of untaxed OTP from out-of-state sources. These companies included KS Wholesale located in Vernon, Calif., and Cheap Cig Distributor located in Paramount, Calif. Kim also used another front company as a retail outlet for some of the untaxed OTP that he sold through his company, Jobber’s Wholesale. That business was Discounted Tobacco located in Long Beach, Calif. As a result of Kim’s scheme, the State of California was defrauded of over $16 million in excise taxes. A large percentage of the proceeds of the excise tax are used to fund California’s early childhood development program, First 5 California.
This case is the product of investigations by a specialized task force comprising the U.S. Attorney’s Office, the California Attorney General’s office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the California State Board of Equalization. For the last several years, these offices have supported a task force dedicated to combating the systemic problem of tobacco excise tax evasion in California. In 2007, the BOE estimated that the state lost approximately $90 million in unstamped tobacco excise taxes to contraband distributors, and approximately $120 million in excise taxes for taxed stamped tobacco like cigarettes. Because California has a relatively high tobacco excise tax rate, it is a frequent target for contraband tobacco smugglers and tax evaders. Assistant United States Attorney Michael D. Anderson and U.S. D.O.J. Antitrust Division Trial Attorney Richard A. Powers, designated as a Special Assistant United States Attorney, prosecuted the case.
“The fraudulent importation and sale of untaxed tobacco punishes honest merchants who play by the rules, and it deprives the State of California of needed tax revenue,” said U.S. Attorney Wagner. “We are gratified by the jury’s verdict, as the conviction of Steve Kim is a significant milestone in our ongoing partnership with the State of California and the ATF to put an end to this practice.”
“ATF works diligently to investigate and disrupt tobacco traffickers. These investigations are arduous and require a long-term commitment from members of our task force and prosecution team,” stated ATF Special Agent in Charge, Joseph M. Riehl. “Today’s guilty verdict is a win for law enforcement, the state of California, and our community.”
“Today’s verdict is a significant win in our battle against the underground economy,” said Board of Equalization Chairman Jerome E. Horton. “It reinforces the need for continued, persistent, and intelligent prosecution of these types of crimes."
Kim is scheduled to be sentenced by Judge Shubb on June 1, 2015. Kim faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Italian Shipping Company Fined $2.75M for Environmental CrimesRead the Press Release
WASHINGTON – Carbofin S.p.A., an Italian domiciled company that owned and operated the M/T Marigola was sentenced to pay an overall criminal penalty of $2.75M by the Honorable Virginia M. Hernandez Covington for knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS), announced the Department of Justice Environment and Natural Resources Division and the United States Attorney’s Office for the Middle District of Florida.
Out of the $2.75M criminal penalty, $600,000.00 will be paid to the National Marine Sanctuary Foundation for the benefit of Florida’s only national marine sanctuary: the Florida Keys National Marine Sanctuary. The funds are to be used to support the protection and preservation of natural resources located in and adjacent to the sanctuary, including the cleanup and remediation of pollution in the sanctuary; restoration of injured resources, particularly coral reefs and seagrass beds and species dependent on those habitats. The funds will also support scientific research in, and public education about, the Florida Keys National Marine Sanctuary
During 2013 and 2014, on numerous international voyages, senior members of the crew of the M/T Marigola directed the installation and use of a so-called “magic hose” to dispose of sludge, waste oil and oil-contaminated bilge water directly into the sea bypassing required pollution prevention equipment. On April 16, 2014, the vessel called upon the Port of Tampa to load anhydrous ammonia. Coast Guard inspectors boarded the vessel and were approached by two junior engineering crew members who showed the inspectors a video of the “magic pipe” hooked up between piping leading to the bilge tank and the vessel’s boiler blow down valve. The boiler blow down valve is a discharge point for the boiler to release hot water and steam. The inspectors had the valve removed and an oily black substance was discovered. Oil samples taken from the “magic hose”, the bilge piping and the boiler blow down valve matched. The Chief Engineer, Carmelo Giano, and the Second Engineer, Alessandro Messore, had previously pleaded guilty and were sentenced for their role in ordering the use of the “magic hose” to illegally discharge oily waste into the sea.
"We are extremely grateful to the U.S. Department of Justice in supporting the work of the National Marine Sanctuary Foundation on behalf of the nation's marine sanctuaries, including here at the Florida Keys National Marine Sanctuary," said Jason Patlis, President and CEO of the National Marine Sanctuary Foundation. "These funds will go to critical education, research and restoration activities, including deployment of mooring buoys, coral reef restoration, and study and mitigation of invasive species impacts."
"Marine environmental protection is one of the Coast Guard's primary missions," said Capt. Gregory Case, Captain of the Port at Sector St. Petersburg. "The Coast Guard takes marine pollution seriously and works cohesively with our partner agencies to hold those who violate international law accountable for their actions. We anticipate the results of this case will deter future illegal oil discharges into the sea."
Consistent with requirements in the APPS regulations, a vessel like the M/T Marigola, must maintain a record known as an oil record book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person or persons in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the oily water separator (OWS). Waste oil and sludge can only be disposed of using an on-board incinerator or by discharging the waste to a shore-side facility, barge or tanker truck. Giano and Messore falsified the oil record book by not recording that oily waste was being disposed of through the boiler blow down valve.
During the course of the investigation, it was revealed that the oil record book for the M/T Marigola was falsified since at least June 16, 2013. The investigation also revealed that illegal oily waste discharges had occurred from two other vessels owned and operated by Carbofin, the M/T’s Marola and Solaro. On the M/T Marola, a “magic hose” was used between on or about December 2012 and April 2013 and on the M/T Solaro between on or about February to August 2013.
The case was investigated by U.S. Coast Guard Sector St. Petersburg and the U.S. Coast Guard Investigative Service. The case was prosecuted by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice and Matthew Mueller of the U.S. Attorney’s Office for the Middle District of Florida.
Inmate Sentenced for Filing False Income Tax Returns for Fellow PrisonersRead the Press Release
CINCINNATI, OHIO -- James Jeremy Savage, 41, originally from Springfield, Ohio, was sentenced to 30 months in prison, three years of supervised release, and was ordered to pay restitution to the Internal Revenue Service (IRS) in the amount of $148,307.04 for filing false claims for income tax refunds with IRS. Savage was incarcerated in Ohio state correctional facilities in Warren and Madison counties when he committed this crime. Savage previously pleaded guilty one count of a multi-count indictment charging Savage with this scheme.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the sentence handed down today by U.S. District Judge Susan J. Dlott.
According to court documents, during the 2007 through 2011 income tax years Savage participated in a scheme to defraud the IRS relative to filing false claims for income tax refunds for his jailmates serving prison terms.
From approximately October 22, 2008 to August 24, 2011 while incarcerated, Savage prepared fictitious income tax returns for fellow inmates. The income tax returns prepared by Savage reported false wages not supported by Forms W-2 or other income documentation and the tax refunds were calculated based on false federal income tax withholdings as well as various tax credits.
Savage knew the inmates, for whom he prepared income tax returns, had not worked and in some cases had been incarcerated for multiple years. In many instances, Savage prepared multiple income tax returns for the inmates, including returns for the prior tax years that had not been filed. In an effort to convince the inmates that they were entitled to an income tax refund, Savage said the money was “free money,” a result of “stimulus money” provided by the President, as well as money from back taxes.
Savage caused at least ninety-nine (99) false claims for income tax refunds to be filed with the IRS totaling at least $148,307.04.
Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office stated, “This 30-month sentence demonstrates our unwavering commitment to protecting the interests of law-abiding taxpayers. We will continue to partner with the U.S. Attorney’s Office and investigate the criminals who engage in such brazen and fraudulent conduct, ensuring that the only citizens who receive tax refunds are those who are entitled to them.”
U.S. Attorney Stewart commended the investigation by special agents of IRS-Criminal Investigation, and Assistant United States Attorneys Anne L. Porter, who prosecuted the case.
Independence Business Owner Plead Guilty to Filing a False Tax ReturnRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of an Independence, Mo., business has pleaded guilty in federal court to failing to report business income on her federal income tax return.
Peggy Hennon, 57, Independence, the owner and operator of Peggy’s Tow, pleaded guilty before U.S. Magistrate Judge John T. Maughmer on Monday, March 2, 2015. Hennon pleaded guilty to filing a false income tax return for the 2007 tax year. The government contends that Hennon failed to report more than $192,000 in business income.
Peggy’s Tow purchased vehicles as scrap and sold them to scrap yards in the Kansas City metro area. After the vehicles were sold to the scrap yard, Hennon either deposited the check into one of her checking accounts or cashed the check at a gas station or bank.
According to the plea agreement, Hennon engaged in a scheme to falsely under-report the gross receipts for her business in order to significantly reduce her tax liability. Although Hennon used a professional tax preparer, she provided the information regarding her income and expenses. Hennon cashed a significant amount of checks she received from the sale of scrap vehicles and failed to include those cashed checks on her tax returns for tax year 2007.
Hennon filed her federal income tax return for 2007 on Oct. 16, 2008. Hennon substantially understated her gross receipts in the amounts of $192,201 for tax year 2007. Hennon stated that she received $168,549 in gross receipts in tax year 2007 when she actually knew her gross receipts were at least $360,750. The additional tax due and owing for 2007 is $57,726.
Under federal statutes, Hennon is subject to a sentence of up to three years in federal prison without parole, plus a fine up to $100,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation.
Husband and Wife Arraigned on Charges of Fraud and Money Laundering Related to Classic Car SchemeRead the Press Release
Law Enforcement Seeking Assistance From Potential Victims
Fort Smith, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Travis Allen Blount, Jr., aka Travis Allen, or Allen Blount, age 56, of Kirbyville, Missouri and his wife Sandra J. Blount, age 47, of Kirbyville, Missouri, each appeared separately this week in United States District Court for arraignment on charges related to a scheme to defraud involving classic and vintage cars. The Honorable Mark E. Ford presided over both hearings; each defendant pleaded not-guilty to all charges. Travis Blount previously lived in Harrison and Hot Springs, Arkansas. Prior to moving to Arkansas, Blount lived in Louisiana. The defendants are scheduled for trial on April 6, 2015 before United States District Judge P.K. Holmes III.
U.S. Attorney Eldridge stated, “We are committed to identifying and prosecuting all types of fraudulent schemes that prey on innocent people. We ask for the public’s help with identifying all of the victims in this case, to ensure that justice is pursued for all fraudulent conduct involved. Potential victims should contact Law Enforcement at the telephone number below with any relevant information.”
As alleged in the complaint, the Blounts operated two car lots, “Corvettes and Classics” in Harrison, Arkansas and “Al’s Hot Rods” in Kirbyville, Missouri. The Blounts made agreements with victims to sell classic and vintage vehicles on consignment. Instead of compensating victims, the Blounts frequently sold cars without paying the owners and accepted payments from buyers without delivering the vehicle or title. Please contact Special Agent Tim Arsenault at 479-571-9763 if you have any information in this case.
A Federal Grand Jury charged Travis A. Blount, Jr. with the following: one count of Conspiracy to Defraud, three counts of Mail Fraud, four counts of Wire Fraud, two counts of Interstate Transportation of Goods to Conceal a Scheme to Defraud, and four counts of Money Laundering. Sandra J. Blount was charged with the following offenses: one count of Conspiracy to Defraud, one count of Aiding and Abetting Mail Fraud, one count of Aiding and Abetting Wire Fraud, one count of Aiding and Abetting Interstate Transportation of Goods to Conceal a Scheme to Defraud, and one count of Aiding and Abetting Money Laundering.
This case is being investigated by the Financial Crimes Task Force in the Western District of Arkansas, the Internal Revenue Service - Criminal Investigation Division, Homeland Security Investigations, the Fayetteville Police Department, and the Harrison Police Department. Assistant U.S. Attorney Kyra Jenner is prosecuting the case for the United States.
The charges in the complaint are only allegations. A person is presumed innocent unless or until he or she is proven guilty beyond a reasonable doubt in a court of law.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FELIX HUMBERTO FIGUEROA-LOPEZ, age 42, a Honduran citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced FIGUEROA-LOPEZ to 15 months imprisonment followed by three years of supervised release, and a $100 special assessment. Following his incarceration, FIGUEROA-LOPEZ will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, on or about August 16, 2014, Jefferson Parish Sheriff deputies arrested FIGUEROA-LOPEZ for disturbing the peace/fighting. The deputies then contacted agents of the U.S. Immigration and Customs Enforcement, who discovered that FIGUEROA-LOPEZ was a Honduran national who had been previously deported from the United States in 1999 and 2004. ICE agents confirmed that FIGUEROA-LOPEZ had again illegally reentered the United States without inspection by a United States Immigration official. Agents placed an ICE detainer on FIGUEROA-LOPEZ in order to hold him for criminal prosecution.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters was in charge of the prosecution.
Honduran National Sentenced for Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE EDGARDO CANALES-MADRID, age 25, a citizen of Honduras, was sentenced after previously pleading guilty to a one-count Bill of Information for illegal reentry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced CANALES-MADRID to times served, which was approximately three months imprisonment, and a $100 special assessment. CANALES-MADRID will be surrendered to the custody of the U.S. Immigration & Customs Enforcement for removal proceedings.
According to court documents, CANALES-MADRID was found in the United States on December 1, 2014 after having been officially deported and removed on or about October 6, 2011.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
Gretna Woman Charged with Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that THERA ELLISON, age 58, a resident of Gretna, was charged today with theft of government funds.
According to the Indictment, ELLISON received Federal Emergency Management Agency assistance in order to replace a Hurricane Katrina-damaged school building. It is alleged that ELLISON spent some of the funds on improper purposes, including her own personal benefit, even though she had represented that the funds would be used to pay specific expenses related to the replacement of the building.
If convicted, ELLISON faces up to ten years’ incarceration and a fine of up to $250,000. U.S. Attorney Polite reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Department of Homeland Security - Office of Inspector General in investigating this matter and thanked the Office of Louisiana Legislative Auditor for its assistance. Assistant U.S. Attorney Chandra Menon is in charge of this prosecution.
Getaway Driver in Bank Robbery SentencedRead the Press Release
Gregory Gilmer, Jr., 34, of Belleville, was sentenced today by Chief United States District Court Judge Michael J. Reagan to 70 months in federal prison for armed bank robbery and conspiracy to commit bank robbery, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois.
According to court documents, Gilmer, Cortez Beckman, and Jimmie Rhodes agreed to rob the Gateway Metro Federal Credit Union in Swansea, Illinois on April 30, 2013. Gilmer served as the getaway driver, while Beckman and Rhodes went inside the credit union armed with a BB gun and stole $10,092.00. The three men fled the scene. Law enforcement in Belleville attempted to stop the getaway car. When the car would not, a vehicle chase ensued. The getaway car crashed, and the three men fled on foot. Beckman was found under a chicken coup with the robbery proceeds and arrested. Rhodes and Gilmer were arrested a short time later. All three men pled guilty and are serving time in the Bureau of Prisons.
Chief Judge Reagan sentenced Gilmer to a total of 70 months in federal prison: 60 months for the conspiracy to commit bank robbery and 70 months for armed bank robbery to run concurrently. There is no parole in the federal prison system. In addition to the prison sentence, Judge Reagan also sentenced Gilmer to serve 3years of supervised release. United States Attorney Wigginton stated, "I am pleased with sentence imposed by Chief Judge Reagan. The prosecution of this bank robbery demonstrates my office’s sincere commitment to doing everything we can to assist law enforcement in targeting, investigating, and prosecuting those individuals that seek to profit from violent crimes. Hopefully my Armed Robbery Initiative, coupled with prosecutions of any kind of theft or robbery, will make our communities safer places to live and work."
The Swansea, Illinois, Police Department and the Federal Bureau of Investigation investigated this case with the assistance of the Belleville, Illinois, Police Department and the Illinois State Police. Assistant United States Attorney Monica A. Stump prosecuted the offense.
Former Georgia Department of Corrections Employees and Accomplice Indicted for Stealing State Restitution FundsRead the Press Release
ATLANTA - Tammi Stephens, Daynna Gregory, and Richard Cantrell have been arraigned on federal charges of theft of public funds and conspiracy stemming from an alleged check fraud scheme to steal from a victims’ restitution fund controlled by the Georgia Department of Corrections, where Stephens and Gregory worked until recently.
“These defendants are charged with stealing from a fund set up to compensate victims of crime,” said Acting U.S. Attorney John Horn. “At the time of their alleged actions, Stephens and Gregory were Georgia Department of Corrections employees, holding positions in which they were responsible for issuing checks to crime victims.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The allegations contained within this federal indictment involve a serious breach of trust by these defendants. The FBI remains committed toward investigating and presenting for prosecution those individuals who would use their positions of trust within government for personal gain.”“The abuse of public trust by Stephens and Gregory as state employees, and their betrayal of the victims we serve are actions that won’t be tolerated,” said Homer Bryson, Commissioner of the Georgia Department of Corrections. “We appreciate the swift response by the FBI, and the diligence of our staff in identifying this serious breach. We are committed to fully cooperating and assisting with the investigation and prosecution of these former employees,” added Bryson.
According to Acting U.S. Attorney Horn, the indictment, and other information presented in court: From September 2013 to June 2014, Stephens and Gregory used their positions as clerks in the Georgia Department of Corrections’ banking unit to issue fraudulent checks drawn on a fund established to provide restitution to victims of other crimes. The indictment further alleges that Stephens and Gregory made the checks payable to a flower shop owned by Cantrell, who was not an employee of the Department. The defendants purposely issued fraudulent checks to the flower shop in order create the appearance that the restitution checks were being paid to real crime victims. After printing the fraudulent checks, Stephens and Gregory allegedly altered the Department’s financial records to hide their theft. The fraudulent checks were then delivered to Cantrell, who cashed them and split the proceeds with Stephens and Gregory. In total, the defendants allegedly stole more than $232,000, which they then spent at big box stores and department stores.
Tammi Stephens, 37, of Forsyth, Georgia, Daynna Gregory, 41, of Lithonia, Georgia, and Richard Cantrell, 54, of Marietta, Georgia were indicted by a federal grand jury on March 3, 2015. All three defendants were arraigned this afternoon before Magistrate Judge E. Clayton Scofield, III.Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Kurt R. Erskine and Special Assistant United States Attorney Trevor C. Wilmot are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Final Defendant in Multi-State Drug Trafficking Organization Enters Guilty PleaRead the Press Release
ABINGDON, VIRGINIA – Acting United States Attorney Anthony P. Giorno announced today that William Hunt, Jr., 55, Abingdon, Virginia, entered a plea of guilty today in the United States District Court for the Western District of Virginia in Abingdon. Hunt pleaded guilty to one count of use of a communications facility in furtherance of a drug trafficking offense. Hunt’s guilty plea brings the total number of defendants found guilty to twenty-eight as a result of “Operation Saltvegas”, a multi-agency investigation into methamphetamine trafficking in Southwest Virginia and Northeast Tennessee.
According to evidence presented at multiple hearings by Assistant United States Attorney Zachary T. Lee, the drug trafficking organization led by Richard Shaw, Mountain City, Tennessee, was a supplier of large quantities of methamphetamine to more than twenty-seven sub-distributors in both Northeast Tennessee and Southwest Virginia. The drug trafficking organization was uncovered as part of a multi-agency investigation involving federal, state and local law enforcement in both Virginia and Tennessee. As a result of the investigation twenty-eight individuals have pleaded guilty and agreed to forfeit more than $200,000. To date, twenty-five individuals have been sentenced as a result of the investigation. The defendants that have been sentenced are:- Richard Shaw 59, Mountain City, TN – 210 months imprisonment
- Jeramiah Yates, 34, Vilas, NC – 37 months imprisonment
- Melvin Campbell, 45, Mountain City, TN – 7 months imprisonment
- Daniel Reece, 46, Mountain City, TN – 72 months imprisonment
- Linda Walters, 46, Mountain City, TN – 12 months and 1 day imprisonment
- Russell Wayne Cassell a/k/a “Rusty”, 44, Glade Spring, VA – 41 months imprisonment
- Kenneth Craig Buchanan a/k/a “Bubba”, 50, Glade Spring, VA – 24 months imprisonment
- Stephanie Patrick, 40, Glade Spring, VA – 24 months imprisonment
- Roger Lawson, 65, Glade Spring, VA – 46 months imprisonment
- Toby Mock, 44, Glade Spring, VA – 6 months imprisonment
- Rachel Peake, 44, Atkins, VA – 6 months imprisonment
- Jason Mullinax, 37, Chilhowie, VA – 36 months imprisonment
- Roger Austin, Jr. a/k/a “Fat Rog”, 52, Glade Spring, VA – 121 months imprisonment
- Angela Surber, 40, Chilhowie, VA – 37 months imprisonment
- Timothy Nickolas Rabara, 26, Marion, VA – 5 years probation
- Albert Hague, 56, Mountain City, TN – 30 months imprisonment
- Kimberly Ann Bradley, 44, Johnson City, TN – 12 months and 1 day imprisonment
- James Poore a/k/a “Danny”, 48, Glade Spring, VA – 18 months imprisonment
- Tony Delp, Glade Spring, VA – 6 months imprisonment
- Katherine Mitchell, 55, Saltville, VA – 78 months imprisonment
- Gary Lee Howell, 53, Saltville, VA – 121 months imprisonment
- Angeline Delp, 53, Saltville, VA – 6 months imprisonment
- Tony Delp, 63, Saltville, VA – 6 months imprisonment
- Angela Surber, 40, Glade Spring, VA – 37 months imprisonment
- Brandi Dunford, 34, Abingdon, VA – 60 months imprisonment
The investigation of this case was conducted by the Washington County Sheriff’s Office, Russell County Sheriff’s Office, Smyth County Sheriff’s Office, Abingdon Police Department, Virginia State Police, Johnson County, Tennessee Sheriff’s Office, Tennessee Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, and the United States Marshals Service. The Smyth County Commonwealth’s Attorney’s Office and the Washington County Commonwealth’s Attorney’s Office also assisted in the investigation and prosecution of this case. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.Eilin Castillo Charged with Illegal Entry, Gun PossessionRead the Press Release
St. Thomas, USVI – A federal grand jury returned a three-count indictment on March 5, 2015, charging Eilin Montano Castillo, 33, of the Dominican Republic with possession of a firearm by an illegal alien, possession of a firearm with an obliterated serial number, and illegal entry by an alien, United States Attorney Ronald W. Sharpe announced.
Castillo was arrested on November 17, 2014, and remains in custody while he awaits arraignment and advice of rights on the indictment. If convicted for possession of a firearm by an illegal alien, Castillo faces a maximum penalty of 10 years in prison. If convicted for possession of a firearm with an obliterated serial number, he faces a maximum penalty of five years in prison, and if convicted on the illegal entry by an alien charge, he faces a maximum of six months in prison.
United States Attorney Sharpe reminds the public that an indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless found guilty.
This case is being investigated by the U.S. Department of Homeland Security, Homeland Security Investigations, and is being prosecuted by Assistant U.S. Attorney David White.
Dettelbach to Lead Delegation of U.S. Attorneys to Selma to Commemorate "Bloody Sunday"Read the Press Release
U.S. Attorney for the Northern District of Ohio Steven M. Dettelbach will lead a delegation of 25 U.S. Attorneys from across the country to Selma, Ala., this weekend to commemorate the 50th anniversary of the "Bloody Sunday" march and discuss the state of civil rights in America.
"This weekend we will all remember that freedom is not cheap," Dettelbach said. "That the rights we cherish were paid for with the tears, the sweat and even the blood of brave men and women who came before us and fought for them in places like a bridge in Selma, Alabama. As we continue the struggle to keep those rights, and extend them to every person in this country, it is important that we remember that we owe it both to our past and the future to never give up."
This weekend marks the 50th anniversary of "Bloody Sunday" and the Selma-to-Montgomery march in support of passage of the Voting Rights Act.
Dettelbach chairs the Attorney General's Advisory Committee's Civil Rights subcommittee. This weekend's events will include a speech from President Obama at the Edmund Pettus Bridge. Dettelbach will also be involved in discussions about police-community relations, marriage equality, voting rights, the Americans with Disabilities Act and enforcement of other civil rights.
Couple who Fled to Eastern Europe During Bank Fraud Investigation Enter Guilty PleasRead the Press Release
A King County couple who fled to Moldova, in Eastern Europe before being indicted by a federal grand jury for bank fraud related to loans fraudulently obtained from Westsound Bank, entered guilty pleas today in U.S. District Court in Seattle, announced Acting United States Attorney Annette L. Hayes. ALEKSANDR KRAVCHENKO, 36, pleaded guilty to conspiracy to commit bank fraud and filing a false income tax return. GALINA KRAVCHENKO, 35, pleaded guilty to filing a false income tax return. The couple profited from a mortgage fraud scheme in which ALEKSANDR KRAVCHENKO submitted phony loan applications to Westsound Bank. GALINA KRAVCHENKO acted as the real estate agent in the scheme earning large commissions on the fraudulent sales. ALEKSANDR KRAVCHENKO’s plea agreement estimates the loss amount on the bank fraud scheme at more than $10 million, and the tax loss on the false returns at more than $370,000. Chief U.S. District Judge Marsha J. Pechman scheduled sentencing for June 5, 2015.
According to records filed in the case, the KRAVCHENKOs were indicted in May 2009 for an extensive bank fraud scheme involving straw buyers and false statements on mortgage applications. According to facts admitted in the plea agreements, ALEKSANDR KRAVCHENKO had his wife GALINA, a real estate agent, locate real property that was available for purchase. ALEKSANDR KRAVCHENKO then recruited otherwise unqualified buyers to participate in purchasing and building on the properties. ALEKSANDR KRAVCHENKO submitted false and fraudulent construction loan applications and related documents to Westsound Bank, thereby causing Westsound Bank to make loans. A portion of the fraudulently-obtained loan proceeds were diverted for ALEKSANDR KRAVCHENKO’s personal use and benefit, and to further the fraud scheme. GALINA KRAVCHENKO made substantial real estate commissions on the deals. ALEKSANDR KRAVCHENKO submitted 55 loan packets to Westsound Bank worth $49 million – ultimately the bank suffered a $10.7 million loss on the loans and was closed by regulators on May 8, 2009.
Aware of the investigation, but before the indictment was returned, the two KRAVENCHENKOs fled the U.S. and went to Moldova where ALEKSANDR KRAVCHENKO retains citizenship. The two were out of the reach of U.S. law enforcement until December 2014, when GALINA KRAVCHENKO was returned to the U.S. based on an extradition warrant. GALINA KRAVCHENKO had been arrested in Moldova in September 2014 for having false Moldovan and Russian travel documents. GALINA KRAVCHENKO has been in custody since December 2014. ALEKSANDR KRAVCHENKO returned to the U.S on February 23, 2015 to resolve the criminal charges.
Under the terms of the plea agreements, both the prosecution and defense will recommend a five year prison term for ALEKSANDR KRAVCHENKO. He has agreed to make restitution of $10,759,722 for the bank fraud scheme and $370,541 for filing a false tax return. GALINA KRAVCHENKO is equally responsible for the $370,541 for filing a false tax return. Prosecutors will recommend a sentence of time already served in prison for her.
The case was investigated by the FBI, the Federal Deposit Insurance Corporation, Office of Inspector General, the Internal Revenue Service, Criminal Investigations, and the Washington State Department of Financial Institutions. The case is being prosecuted by Assistant United States Attorneys Tessa Gorman and Thomas Woods.
Press contact for the U.S. Attorney’s Office is Public Affairs Officer Emily Langlie at (206) 553-4110 or [email protected].
Co-Defendants in Scheme to Bribe FBI Agent Sentenced in White Plains Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Leslie R. Caldwell, the Assistant Attorney General of the Justice Department’s Criminal Division, and Michael E. Horowitz, the Justice Department Inspector General, announced that JOHANNES THALER and RIZVE AHMED, a/k/a “Caesar,” were sentenced yesterday in White Plains federal court to 30 months and 42 months in prison, respectively. THALER and AHMED were sentenced in connection with a bribery scheme with a third defendant, former FBI Special Agent Robert Lustyik, who awaits sentencing. The sentences were imposed by the Honorable Vincent L. Briccetti, United States District Judge.
According to the Complaint, the Indictment, court hearings, and yesterday’s proceedings:
Lustyik was a Special Agent with the Federal Bureau of Investigation (“FBI”) who worked on the counterintelligence squad in the White Plains Resident Agency. THALER was Lustyik’s friend, and AHMED was an acquaintance of THALER. From in or about September 2011 through March 2012, Lustyik, THALER, and AHMED engaged in a bribery scheme. As part of the scheme, Lustyik and THALER solicited payments of money from AHMED, in exchange for Lustyik’s agreement to provide internal, confidential documents and other confidential information to which Lustyik had access by virtue of his position as an FBI Special Agent. The documents and information pertained to a prominent citizen of Bangladesh (“Individual 1”). AHMED perceived himself on the opposite side of a political rivalry with Individual 1. AHMED sought, among other things, to obtain information about Individual 1, to locate Individual 1, and to harm Individual 1 and others associated with Individual 1.
As part of the scheme, Lustyik and THALER exchanged text messages, including messages about how to pressure AHMED to pay them additional money in exchange for confidential information. For example, in text messages, Lustyik told THALER, “we need to push [AHMED] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” THALER responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
For another example, in or about late January 2012, Lustyik, upon learning that AHMED was considering using a different source to obtain confidential information about Individual 1, texted THALER, “I want to kill C . . . . I hung my ass out the window n we got nothing? . . . . Tell [AHMED], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [AHMED and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to Individual 1].” Lustyik further texted THALER, “So bottom line. I need ten gs asap. We gotta squeeze C.”
THALER, 51, of New Fairfield, Connecticut, and AHMED, 35, of Danbury, Connecticut, were each sentenced for bribery and conspiracy to commit fraud, to which each previously pled guilty.
Lustyik, 52, of Westchester County, pled guilty on December 23, 2014, to all five counts in the Indictment in which he is charged. Lustyik pled guilty to (1) conspiracy to engage in a bribery scheme; (2) soliciting bribes by a public official; (3) conspiracy to defraud the citizens of the United States and the FBI; (4) theft of government property; and (5) unauthorized disclosure of a Suspicious Activity Report. Lustyik is scheduled to be sentenced by Judge Briccetti on April 30, 2015, at 9:30 a.m.
Mr. Bharara praised the efforts of the Department of Justice Office of the Inspector General, which conducted the investigation in this case.
The prosecution is being handled by the Office’s White Plains Division and by the Public Integrity Section of the U.S. Department of Justice. Assistant United States Attorney Benjamin Allee and Trial Attorney Emily Rae Woods are in charge of the prosecution.
Cedar Rapids Woman Charged with Filing Fraudulent Tax Returns and Aggravated Identity TheftRead the Press Release
Gwendolyn Murray, 33, from Cedar Rapids, Iowa, has been charged with twelve counts of filing false claims for tax refunds, seven counts of theft of government property, and two counts of aggravated identity theft. The charges are contained in an Indictment unsealed on March 3, 2015, in United States District Court in Cedar Rapids.
The Indictment alleges that in 2012 and 2013, Murray, using other names, prepared and filed twelve fraudulent tax returns claiming tax refunds to which no one was entitled. The Indictment further alleges that she stole money from the Internal Revenue Service when she received refunds from seven of the fraudulent returns she filed. Finally, the Indictment alleges Murray stole the identities of two people by using their names, social security numbers, and signatures in furtherance of her theft of government property.
If convicted on all charges, Murray faces a mandatory minimum sentence of two years’ imprisonment and a possible maximum sentence of 134 years’ imprisonment, a fine, $2100 in special assessments, and a term of supervised release following any imprisonment.
Murray appeared on March 3, 2015, in federal court in Cedar Rapids and was released on bond. Murray’s 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.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 15-CR-0015-LRR. Follow us on Twitter @USAO_NDIA.
California Man Pleads Guilty to Possession of Child PornographyRead the Press Release
DES MOINES, IA – On March 5, 2015, David Anthony Lavera, age 33, of San Diego, California, plead guilty to federal possession of child pornography charges before U.S. Magistrate Judge Ross Walters, announced United States Attorney Nicholas A. Klinefeldt. Sentencing has been scheduled for June 5, 2015, at 3:00 p.m., before Chief Judge John A. Jarvey at the United States Courthouse in Des Moines, Iowa.
Lavera pled guilty under a plea agreement that calls for him to serve 63 months in federal prison, to be followed by 10 years of supervised release.
As a factual basis for his plea, Lavera admitted that on June 11, 2014, he knowingly possessed child pornography of a minor that he had produced at a residence in Newton, Iowa, using a hidden camera.
Any persons having knowledge of a child being sexually abused, or of a person committing child pornography crimes, are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
The investigation was conducted by the Jasper County Sheriff’s Office, the Newton, Iowa, Police Department, the Iowa Department of Criminal Investigation, and Homeland Security Investigations. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Belleville Man Sentenced for Cocaine Trafficking Conspiracy, Possession of A Firearm in Furtherance of the Conspiracy, and Distribution of Crack CocaineRead the Press Release
Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 5, 2015, Martez Moore, 40, formerly of Belleville, Illinois, was sentenced for Conspiracy to Distribute and Possess with Intent to Distribute Cocaine (Count 1), Possession of a Firearm in Furtherance of a Drug Trafficking Crime (Count 2), and Distribution of Cocaine Base in the Form Commonly Known as "Crack" (Counts 3 and 4), following his guilty plea to the charges on September 24, 2014. Moore was sentenced to 151 months in federal prison on Counts 1, 3 and 4, the sentences to run concurrently, and 60 months in prison on Count 2, the sentence to run consecutively to the sentence imposed on Count 1, for a total sentence of 211 months in prison. He was also ordered to serve 5 years’ supervised release following service of his term of imprisonment, and to pay a $400 special assessment. Moore has been in custody since his arrest on May 7, 2014.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) beginning in April 2013. An ATF special agent posed as a cocaine distributor for a Los Angeles based cocaine trafficking organization which was considering using the Metro East St. Louis area as a hub for distribution. The undercover ATF agent was first introduced to Martez Moore and later to Antwone Johnson, Dewayne Hill, Brian Matthews, Bryant Sawyer, Jaren
Jamison, and former East St. Louis police detective Orlando Ward. The undercover agent’s meetings with Moore culminated in Moore asking the undercover agent to broker the supply of 10 kilograms of cocaine from the Los Angeles organization. In return, Moore agreed to provide armed security for the anticipated delivery of 10 kilograms of cocaine and distributors for the cocaine. Moore recruited Johnson as a distributor, and Matthews, Sawyer and Jamison as armed security. Moore also recruited Dewayne Hill to protect him when he accepted delivery of the cocaine. Finally, Moore recruited Orlando Ward, a then detective with the East St. Louis Police Department, to provide police information and to help the conspiracy avoid law enforcement detection. Moore was the last to be sentenced in the case.
The case was assigned to Assistant United States Attorney Kit Morrissey.
Battle Creek Man Convicted of School Shooting ThreatsRead the Press Release
GRAND RAPIDS, MICHIGAN – A federal judge convicted Timothy Siangdun of Battle Creek, Michigan of three counts of making interstate communications with threat to injure. U.S. District Judge Janet T. Neff heard the case without a jury on Thursday, February 26, 2015 and found Siangdun guilty as charged in the indictment of making three threatening Facebook postings regarding school shootings at Western Michigan University. A bond revocation motion filed the next morning alleged that upon returning home from the trial, Siangdun posted another school shooting threat to the Western Michigan University Facebook page. Siangdun was taken into custody and his bond subsequently revoked by the Court pending his sentencing on June 4, 2015. He faces a maximum sentence of five years’ imprisonment and a $250,000 fine.
The U.S. Attorney’s Office for the Western District of Michigan was assisted in the investigation by the Springfield Department of Public Safety, Western Michigan University Department of Public Safety, Calhoun County Sheriff’s Office, Calhoun County Prosecuting Attorney, Battle Creek Police Department, and the Federal Bureau of Investigation.
U.S. Attorney Patrick A. Miles praised the cooperation among federal, state, and local investigators in locating and prosecuting Siangdun. “Online threats of violence have no place in the Western District of Michigan. Our state and local partners worked long hours to see that these threats were fully investigated for possible prosecution.”
“Mr. Siangdun posted numerous messages on-line in which he threatened acts of violence at Western Michigan University, including threats of a school shooting. Immediately following his conviction on these serious charges, and after being cautioned by a federal judge, he engaged in the same conduct once again, making further threats on-line,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI and our law enforcement partners investigate and address these types of threats with the highest priority. In our continuous efforts to ensure public safety and keep people safe, we will continue to identify, pursue, and hold accountable those who use the Internet or other means to communicate threats of this nature.”
This case is being prosecuted by Assistant U.S. Attorney Clay M. West.
Assumption Parish Men Indicted for Violations of the Federal Controlled Substances ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TOMMY THOMPSON, age 29, a resident of Napoleonville, and STACEY MATTHEWS, age 43, a resident of Thibodaux, were charged on February 12, 2015, in a twenty-count Indictment for violations of the Federal Controlled Substances Act. The indictment was recently unsealed.
According to the Indictment, THOMPSON and MATTHEWS were engaged in a conspiracy to sell cocaine hydrochloride. THOMPSON was also indicted on conspiring to distribute crack cocaine as well as several counts of distributions of crack cocaine, cocaine hydrochloride and marijuana. In addition, THOMPSON faces charges of possessing a firearm in furtherance of his drug trafficking trade and for being a convicted felon in possession of a firearm in violation of the Federal Gun Control Act. MATTHEWS was indicted for distributing cocaine hydrochloride.
Cocaine Hydrochloride Conspiracy charge – THOMPSON and MATTHEWS
- maximum of 20 years imprisonment
- maximum fine of $1,000,000
- minimum 3 years of supervised release
Crack Cocaine Conspiracy charge – THOMPSON
- maximum of 20 years imprisonment
- maximum fine of $1,000,000
- minimum 3 years of supervised release
Distribution of crack cocaine charge – THOMPSON
- maximum of 40 years imprisonment
- maximum fine of $5,000,000
- minimum of 4 years of supervised release
Distribution of powder cocaine charge – THOMPSON
- maximum of 20 years imprisonment
- maximum fine of $1,000,000
- minimum 3 years of supervised release
Distribution of marijuana charge – THOMPSON
- maximum of 20 years imprisonment
- maximum fine of $1,000,000
- minimum of 3 years of supervised release
Possession a firearm in furtherance of drug trafficking charge – THOMPSON
- minimum of 5 years up to life imprisonment
Being a convicted felon in possession of a firearm charge – THOMPSON
- maximum 10 years imprisonment
- maximum fine of $250,000
- maximum of 3 years of supervised release
Distribution of cocaine hydrochloride charge – MATTHEWS
- maximum 10 years imprisonment
- maximum fine of $1,000,000
- minimum of 3 years of supervised release
U. S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Louisiana State Police and the Assumption Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Angela Davis Sentenced to Six Months in Prison Followed by Six Month of Home Detention for Filing False Tax ReturnsRead the Press Release
KNOXVILLE, Tenn. – On Mar. 4, 2015, Angela Davis, 39, of Knoxville, Tenn., was sentenced by the Honorable Pamela Reeves, U.S. District Judge, to serve six months in prison followed by six months home detention, a year on supervised release and $61,276.00 in restitution to the Internal Revenue Internal Revenue Service (IRS). Davis pleaded guilty in July 2014 to a federal grand jury indictment charging her with filing false tax returns.
The indictment and subsequent conviction of Angela Davis was the result of an investigation conducted by IRS - Criminal Investigation, Knoxville Police Department and U.S. Postal Inspection Service. Assistant U.S. Attorney Jennifer Kolman represented the United States.
Albuquerque Man Pleads Guilty to Laundering Money for Major Narcotics Trafficking OrganizationRead the Press Release
ALBUQUERQUE – Jerome Eckstein, 39, of Albuquerque, N.M., pled guilty today to a money laundering charge under a plea agreement with the U.S. Attorney’s Office that provides for up to 20 months in federal prison.
Eckstein was one of 19 defendants charged in Dec. 2012, with drug trafficking and money laundering charges in a 60-count indictment. The indictment was superseded twice; first in Feb. 2014, to add a 20th defendant and a witness tampering charge, and again in Sept. 2014, to add another witness tampering charge and a heroin trafficking charge.
The charges filed in the case were the result of a 16-month multi-agency investigation into a drug trafficking organization headed by Christopher Roybal, 35, of Albuquerque, N.M., which was led by the FBI, IRS and Albuquerque Police Department with assistance from the DEA, the HIDTA Region I Narcotic Task Force and the Bernalillo County Sheriff’s Office. The investigation, code-named “Operation Rain Check,” was designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program. OCDETF is a nationwide Department of Justice program that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
According to the original indictment, Roybal and ten others conspired to distribute large quantities of cocaine in New Mexico between Aug. 2011 and Dec. 2012. It further alleged that Roybal and nine others conspired to distribute marijuana between Oct. 2011 and Dec. 2012. The indictment also included three separate money laundering conspiracies, 22 money laundering offenses, and 18 “telephone counts,” offenses alleging the use of a communications device to facilitate a drug trafficking offense. The indictment was superseded in May 2014, to add a new charge against defendant George Roybal, 53, of Albuquerque, alleging that he threatened an FBI informant to prevent the informant from testifying at the trial of this case which was then scheduled to begin on May 19, 2014. It was superseded again in Sept. 2014, to add two new charges against defendant Kenneth Ulibarri, 36, of Albuquerque. The new charges alleged that Ulibarri attempted to murder an FBI informant to prevent that informant from testifying at the trial of this case which was then scheduled to begin on Nov. 10, 2014, and also charged Ulibarri with distributing heroin in Bernalillo County, N.M., in May 2014.
During today’s proceedings, Eckstein pled guilty to a money laundering charge in the second superseding indictment. In entering his guilty plea, Eckstein admitted that between Nov. 2011 and Dec. 2012, he received a large sum of cash from an undercover agent as part of a sting operation. Eckstein further admitted that he should have known that undercover agent was holding himself out to be a drug dealer and that the cash he provided to Eckstein were drug proceeds. Eckstein admitted paying money back to the undercover agent with checks made payable to fictitious companies for work that was never performed.
Two of the defendants charged in this case have entered not guilty pleas and are pending trial. Charges in indictments are merely accusations and criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
This case was investigated by the FBI, IRS Criminal Investigation and the Albuquerque Police Department, with assistance from the DEA, the HIDTA Region I Narcotics Task Force and the Bernalillo County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorneys Joel R. Meyers and Shana B. Long. Assistant U.S. Attorney Stephen R. Kotz is responsible for litigating the related civil asset forfeiture actions.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking ChargesRead the Press Release
ALBUQUERQUE – Lawrence Anthony Martinez, 39, of Albuquerque, N.M., pleaded guilty today in federal court to methamphetamine trafficking charges. Under the terms of his plea agreement, Martinez will be sentenced to 72 months in prison followed by a term of supervised release to be determined by the court.
Martinez was arrested on April 7, 2014, on a criminal complaint charging him with being a felon in possession of a firearm and ammunition in Bernalillo County, N.M., on Jan. 20, 2014. According to the complaint, Martinez was arrested by Albuquerque Police Department (APD) officers on Jan. 20, 2014, after the officers found Martinez in possession of a pistol and methamphetamine during a child welfare check at his residence. Martinez subsequently was indicted on April 9, 2014, and charged with being a felon in possession of a firearm and ammunition, possession of methamphetamine with intent to distribute, and using and carrying a firearm in relation to a drug trafficking crime. At the time, Martinez was prohibited from possessing firearms or ammunition because he previously had been convicted of numerous felony offenses, including possession of a controlled substance, aggravated battery with a deadly weapon causing great bodily harm, burglary, stealing a motor vehicle, receiving or transferring a stolen vehicle, larceny, and aggravated fleeing a law enforcement officer.
During today’s proceedings, Martinez pled guilty to Count 2 of the indictment and admitted possessing methamphetamine with intent to distribute it for monetary gain on Jan. 20, 2014, in Albuquerque.
Martinez has been in custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and APD. Assistant U.S. Attorney Jon K. Stanford is prosecuting this case.
This case is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Albuquerque Man Pleads Guilty to Brandishing a Firearm During Robbery of the First Financial Credit Union in February 2014Read the Press Release
ALBUQUERQUE – Devin Jasperse, 31, of Albuquerque, N.M., pled guilty this morning in federal court to the armed robbery of the First Financial Credit Union located on Coors Boulevard in Albuquerque, and to brandishing a semi-automatic pistol during the commissioning of that crime.
Jasperse was arrested on March 27, 2014, on a criminal complaint charging him with the armed robbery of the bank on Feb. 19, 2014, and with brandishing a firearm during a crime of violence. Jasperse subsequently was indicted on the same charges in a two-count indictment on April 23, 2014.
During today’s proceedings, Jasperse pled guilty to both counts of the indictment and admitted that on Feb. 19, 2014, he robbed the First Financial Credit Union at gunpoint. Jasperse admitted climbing over the teller counter, and yelling that he was committing a bank robbery and that he had a gun. After three bank tellers complied with his demands for cash, Jasperse climbed back over the teller counter and ran out of the bank with the cash. In entering his guilty plea, Jasperse also admitted that he disposed of the gun he used in the armed bank robbery and that he had stashed another firearm at an apartment which was later seized by law enforcement.
At sentencing, Jasperse faces a statutory maximum penalty of 25 years in federal prison on the armed bank robbery charge. He also faces a mandatory seven years in prison on the firearms charge that must be served consecutive to any sentence imposed on the armed bank robbery charge. Jasperse remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department. Assistant U.S. Attorney Lynn Wei-Yu Wang is prosecuting this case.
Alan Tikal Sentenciado A 24 Anos De Prision Por Liderar Un Fraude Masivo De Rescate De Ejecucion HipotecariaRead the Press Release
SACRAMENTO, Calif. — Benjamin B. Wagner, procurador federal del Distrito Oriental de California, informó que el Juez de Distrito Federal de los Estados Unidos, Troy L. Nunley, sentenció a Alan David Tikal de 46 años, anterior residente de Brentwood, California, a cumplir una condena de 24 años de prisión luego de declararlo culpable de once cargos de fraude por correo y un cargo de fraude por correo relacionado con la estafa de rescate de ejecución hipotecaria. Tikal fue hallado culpable mediante juicio sin jurado ante el Juez Nunley el 15 de septiembre de 2014.
Según las pruebas presentadas durante el juicio, entre el 7 de enero de 2010 y el 20 de agosto de 2013, Tikal lideró una empresa conocida como KATN, dirigida a los propietarios de viviendas con problemas financieros y con dificultades para efectuar los pagos mensuales de sus hipotecas. Muchas de sus víctimas no hablaban inglés. Tikal prometió reducir sus deudas hipotecarias pendientes de pago en un 75%, afirmando falsamente ser un banquero privado registrado con acceso a una extensa línea de crédito y con la capacidad de pagar la totalidad de las deudas hipotecarias de los propietarios. Tikal les afirmó a los propietarios de viviendas que, a cambio de diferentes honorarios y pagos, extinguiría las obligaciones relacionadas a sus préstamos vigentes, reduciéndolas a nuevos préstamos con Tikal por montos equivalentes al 25% de su obligación original. Al confiar en las falsas declaraciones efectuadas por Tikal, muchos de estos propietarios dejaron de efectuar los pagos de sus préstamos hipotecarios vigentes y en consecuencia perdieron sus viviendas por ejecución hipotecaria.
De hecho, Tikal, nunca efectuó pago alguno a ninguna institución financiera en representación de los propietarios para cumplir con las obligaciones de sus deudas hipotecarias pre-existentes, sino que sencillamente, el mismo Tikal, sus familiares y asociados gastaron los supuestos pagos del "préstamo" para su uso personal y no hubo ni una sola instancia en la cual se pagara, condonara o extinguiera de otro modo la deuda de los propietarios como resultado del programa de asistencia hipotecaria. En total, Tikal y sus asociados convencieron a màs de 1,000 propietarios de viviendas en California y en otros estados a participar en el programa. Como resultado de su participación, muchos de los propietarios cayeron en mora debido a la falta de pago de sus préstamos y finalmente perdieron sus viviendas por ejecución hipotecaria. Dichos propietarios pagaron màs de $5,800,000 por honorarios y pagos mensuales para el programa. De ese monto, al menos $2,500,000 de los pagos efectuados se depositaron en cuentas que controlaba Tikal y/o su familia.
Al pronunciar la sentencia de Tikal, el Juez Nunley se refirió a las víctimas que, a consecuencia del fraude de Tikal, "no pueden residir en las viviendas que tenían, las cuales en algunos casos, trataron de pagar durante toda la vida." El Juez Nunley dijo que Tikal es "el cerebro detràs de toda esta conspiración" y que se merece la sentencia que recibió.
"La crisis financiera que golpeó tan fuerte a nuestras comunidades hizo que para muchos fuera muy difícil pagar todas las cuentas," dijo el procurador federal del Distrito Oriental de California, Wagner. "Alan Tikal se aprovechó de forma cínica de la desesperación de estas personas para sacar ganancias, robando los pagos que estaban destinados a preservar los hogares de estas familias. A pesar de que no podemos reparar el daño que Tikal ha ocasionado, la sentencia que se impone hoy brinda una medida de justicia."
"Las acciones de Alan Tikal fueron ilegales y no se toleraràn en California. Él y sus socios estafaron a cientos de trabajadores diligentes de California que luchaban para conservar sus hogares durante la crisis de las ejecuciones hipotecarias en nuestro estado," dijo la procuradora general del California, Kamela Harris. "Esta conspiración depredadora les robó los ahorros de toda una vida a muchas familias, y en muchos casos, sus viviendas. Le agradezco a nuestra Fuerza de Ataque contra el Fraude Hipotecario de California y al Departamento de Justicia de los Estados Unidos por su trabajo al hacer posible el enjuiciamiento de estos individuos."
"El acusado abusó de los propietarios desesperados y atrapados por la crisis financiera que buscaban una forma de permanecer en sus hogares", dijo José M. Martínez, Agente Especial en Jefe del Departamento de Investigación Delictiva del IRS (IRS-CI, por sus siglas en inglés). "En lugar de efectuar pagos a los bancos, los acusados se quedaban con el dinero. Tikal llevaba un lujoso estilo de vida que incluía automóviles nuevos, vuelos en aviones privados alquilados y un traje de $5,000. Aunque esta sentencia no puede revertir el daño que causó el Sr. Tikal y sus co-acusados, se destaca el constante compromiso del IRS-CI al hacer responsables a los involucrados en este tipo de delitos.
“Hoy se hizo justicia al sentenciar a Tikal a 24 años en la prisión federal por estafar a los propietarios con dificultades financieras por millones de dólares, ocasionando la ejecución hipotecaria de sus viviendas y destruyendo sus vidas," dijo Christy Romero, Inspectora General Especial para TARP (SIGTARP). "La elocuencia de Tikal y sus promesas llamativas atrajeron a las víctimas, muchas de las cuales no hablaban inglés y sencillamente tenían la esperanza de salvar sus hogares de la ejecución hipotecaria, pero las palabras de Tikal eran tan solo mentiras y artimañas disfrazadas de sofisticación financiera. La arrogancia de Tikal fue suprema al darle a su plan el nombre ‘KATN Trust, (Kicking Ass, Taking Names),’ acrónimo en inglés que significa ganarlo todo, tomando nombres; e incluso luego de que se le acusara y arrestara, continuó con su estafa desde su celda en la càrcel con la ayuda de sus conspiradores asociados. La sentencia impuesta hoy es una advertencia para quienquiera que considere la posibilidad de llevar a cabo o que esté involucrado en un plan para estafar a propietarios con dificultades financieras y un recordatorio de la seriedad y gravedad moral de su delito. SIGTARP se mantiene en unión firme con nuestros socios del orden público para llevar ante la justicia ràpidamente a todos aquellos que cometan un fraude relacionado con el Programa de Alivio de Activos en Problemas (TARP, por sus siglas en inglés).”
Este caso es un proceso conjunto de la Procuraduría Federal para el Distrito Oriental de California y la Procuraduría General de California. Es el resultado de una investigación exhaustiva que realizó la Inspectora General Especial para el Programa de Alivio de Activos en Problemas (SIGTARP), el Departamento de Investigación Delictiva del IRS, el Departamento de Justicia de California y la Procuraduría del Distrito del Condado de Stanislaus. El ayudante del procurador federal para el Distrito Oriental de California, Philip Ferrari, y la Procuradora General Adjunta de California, Maggy Krell, estàn a cargo de procesar el caso.
Se programó una audiencia sobre indemnización para el 26 de marzo de 2016. El co-acusado, Ray Kornfeld, fue sentenciado previamente una condena a 5 años de prisión. La co-acusada Tamara Tikal se declaró culpable previamente y se ha programado su pronunciación de sentencia por Juez Nunley para el 23 de abril de 2015.
Alan Tikal Sentenced to 24 Years in Prison for Leading Massive Foreclosure Rescue ScamRead the Press Release
SACRAMENTO, Calif. — Alan David Tikal, 46, formerly of Brentwood, Calif., was sentenced today by United States District Judge Troy L. Nunley to 24 years in prison for his convictions on eleven counts of mail fraud and one count of mail fraud relating to a foreclosure rescue scam, United States Attorney Benjamin B. Wagner announced. Tikal was convicted following a bench trial before Judge Nunley on September 15, 2014.
According to evidence presented at trial, between January 7, 2010, and August 20, 2013, Tikal was the principal behind a business known as KATN, which targeted distressed homeowners experiencing difficulties making their existing monthly mortgage payments. Many of the victims did not speak English. Tikal promised to reduce their outstanding mortgage debt by 75%, falsely claiming he was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgage debts in full. Tikal told homeowners that in return for various fees and payments, their existing loan obligations would be extinguished, and the homeowners would then owe new loans to Tikal in an amount equaling 25% of their original obligation. In reliance upon misrepresentations made by Tikal, many of these homeowners stopped making payments on their existing mortgage loans and lost their homes to foreclosure as a result.
In fact, Tikal never made any payments to financial institutions on behalf of homeowners in satisfaction of their pre-existing mortgage debt obligations; the purported “loan” payments paid to Tikal were simply spent by himself, his family and his associates for personal use; and there was not a single instance in which a homeowner’s debt was paid, forgiven or otherwise extinguished as a result of the mortgage relief program. In all, Tikal and his associated convinced more than 1,000 homeowners in California and other states to participate in the program. As a result of their participation, many homeowners became delinquent on their loans and ultimately had their homes foreclosed upon. Those homeowners paid more than $5,800,000 in fees and monthly payments into the program. Of that, more than at least $2,500,000 was paid into accounts controlled by Tikal and/or his family.
In sentencing Tikal, Judge Nunley referenced the victims who, as a result of their participation in Tikal’s scam, “can’t reside in houses they had, in some instances, spent their entire lives trying to pay off.” Judge Nunley called Tikal “the mastermind behind this whole scheme,” and said Tikal was deserving of the sentence he was receiving.
“The financial crisis that hit our communities so hard made it very difficult for a lot of people to make ends meet,“ said U.S. Attorney Wagner. “Alan Tikal cynically took advantage of the desperation those people felt for his own profit, stealing payments meant to preserve family homes. Although we cannot undo the harm Tikal inflicted, today’s sentence provides a measure of justice.”
“Alan Tikal’s actions were illegal and will not be tolerated in California. He and his partners defrauded hundreds of hard-working Californians who were fighting to keep their homes during our state’s foreclosure crisis,” Attorney General Harris said. “This predatory scheme robbed families of their life savings and in many cases, their homes. I thank our California Mortgage Fraud Strike Force and the U.S. Department of Justice for their work to bring these individuals to justice.”
“The defendant preyed on desperate homeowners who were caught up in the financial melt-down and looking for ways to stay in their homes”, said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “Rather than making payments to the banks, the defendants pocketed the money. Tikal lived a lavish lifestyle with new cars, chartered private airplane flights and a $5,000 suit. While this sentence cannot reverse the damage caused by Mr. Tikal and his co-defendants, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”
“Justice was served today when Tikal was sentenced to 24 years in federal prison for defrauding struggling homeowners out of millions of dollars, sending their homes into foreclosure, and destroying their lives,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Tikal’s silver tongue and gilded promises enticed victims, many of whom weren’t fluent in English and were simply holding out hope of saving their homes from foreclosure, yet Tikal’s words were nothing more than lies and gibberish that he masqueraded as financial sophistication. Tikal’s arrogance was supreme; he named his scheme ‘KATN Trust,’ short for ‘Kicking Ass, Taking Names,’ and even after being charged and locked-up, he continued to operate the scam from his jail cell with the help of co-conspirators. Today’s sentence is a warning to anyone either considering or engaged in a scheme to defraud struggling homeowners and a reminder of the seriousness and moral reprehensibility of their crime. SIGTARP stands united with our law enforcement partners to bring swift justice to perpetrators of fraud related to TARP.”
This case is a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of extensive investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and California Deputy Attorney General Maggy Krell are prosecuting the case.
A hearing on restitution has been scheduled for March 26, 2016. Co-defendant Ray Kornfeld was previously sentenced to a term of imprisonment of 5 years. Co-defendant Tamara Tikal previously entered a guilty plea and is scheduled to be sentenced by Judge Nunley on April 23, 2015.Akron Man Sentenced for Conspiracy to Import Bath Salts from ChinaRead the Press Release
CONTACT: Karen Brown
PHONE: (716) 843-5836
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Rodney Howard, 45, of Akron, N.Y., was sentenced to 36 months in prison by United States District Court Judge William M. Skretny for conspiracy to import alpha-PVP, a synthetic drug also commonly known as “bath salts.”
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that a quantity of bath salts was ordered over the Internet from China and addressed to a third party at the defendant’s residence in Akron. On April 15, 2014, Howard arrived at the United States Post Office in Akron and picked up the package, which contained 14 ounces of alpha-PVP. Special Agents from Homeland Security Investigations then arrested the defendant.
The sentencing is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, and Special Agents of the U.S. Postal Inspection Service, Boston Division, under the direction of Inspector in Charge, Shelly A. Binkowski.
Additional Ms-13 Gang Member Indicted for Murder of 19-Year-Old Man in Long IslandRead the Press Release
Earlier today, a superseding indictment was unsealed charging the defendant, Milton Contreras, along with previously-charged co-defendants, Byron Lopez and Oscar Welman Espinoza-Merino, with conspiracy to commit murder in-aid-of racketeering, murder in-aid-of racketeering, obstruction-of-justice murder, and firearms offenses1. If convicted, the defendant will face mandatory life imprisonment. Contreras, who was arrested this morning in Kansas City, Kansas, will be presented for arraignment later today at the United States Courthouse in Kansas City, Kansas.
The charges and arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Anthony Scandiffio, Deputy Special Agent-in-Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, New York Field Office (HSI); Delano A. Reid, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Explosives and Firearms, New York Field Division (ATF); and William J. Bratton, Commissioner, New York City Police Department.
“With this arrest, the Office brings another member of the MS-13 gang to justice for a brutal murder in one of our communities last year. The prosecution of these three defendants is a part of the Office’s ongoing commitment to dismantle MS-13, which for years has fomented violence and lawlessness in neighborhoods throughout Queens and Long Island.” Ms. Lynch thanked the Suffolk County Police Department for its assistance with the investigation; the United States Marshals Service Regional Fugitive Task Force for its assistance in locating Contreras; and the United States Attorney’s Office for the District of Kansas for its assistance with the arraignment.
As alleged in court documents, Contreras is a member of the Brentwood, Long Island chapter of the violent street gang La Mara Salvatrucha, also known as “MS-13.” On February 25, 2014, Contreras, Espinoza-Merino, and Lopez directed the victim, fellow gang member Sidney Valverde, to travel to Long Island under the false pretense that they needed him to assist in gang business there. In fact, the co-conspirators planned to kill Valverde because they believed that he was providing information about the gang’s activities to federal law enforcement. After Valverde traveled to Long Island, the co-conspirators shot him in the back of the head and left his body on Miller Place Beach in Suffolk County, where it was discovered by a beachcomber approximately two weeks later.
The indictment of Contreras is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent international street gang comprised primarily of immigrants from El Salvador and Honduras. With numerous chapters, or “cliques,” throughout the United States, MS-13 has a significant presence in Queens and is the largest street gang in Long Island. Since 2003, more than 250 MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. More than 150 of those MS-13 members have been convicted on federal racketeering charges. Since 2010 alone, this Office has obtained indictments charging MS-13 members with carrying out more than 20 murders in the Eastern District of New York and has convicted more than 35 MS-13 members in connection with those murders.
The government’s case is being prosecuted by Assistant United States Attorneys Darren A. LaVerne and Alixandra E. Smith.
The Defendant:
MILTON CONTRERAS, also known as “Diabolico”
Age: 19
____________________________________________
1 The charges contained in the indictments are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Additional Defendants Named in Pittsburgh-area Drug Trafficking ConspiraciesRead the Press Release
PITTSBURGH- Following the indictments of 40 defendants in October 2014, a grand jury last week issued additional and superseding indictments all relating to a lengthy investigation into drug trafficking in the Homewood neighborhood Pittsburgh and other communities in the Greater Pittsburgh area. On Feb. 27, 2015, a federal grand jury issued four related superseding indictments and three new indictments adding an additional 14 defendants, United States Attorney David J. Hickton announced today.
“Maintaining the safety and security of our communities is paramount to law enforcement at all levels, and we remain relentless in our determination to bring to justice the violent criminals and drug traffickers who threaten neighborhood stability,” said U.S. Attorney Hickton. “The law-abiding residents of Homewood deserve to be free from fear of violent activity and drug trafficking. We are committed to ensuring they enjoy that freedom.”
“This long-term, multi-agency initiative centered in and around Homewood and the City of Pittsburgh has led to the indictment of more than 100 defendants, the seizure of more than $1 million as well as large quantities of weapons and drugs,” added Scott S. Smith, Special Agent in Charge of the FBI – Pittsburgh Division.
“ATF will continue to work side-by-side with our Federal, State, and local law enforcement partners to terminate gang violence that is often driven by the illegal drug trade”, said ATF Special Agent in Charge Sam Rabadi. “Pittsburgh’s neighborhoods belong to its law-abiding residents, its rightful residents, not to armed drug gangs.”
THE INDICTMENTS
The first indictment (second superseding), containing two counts, named:- Lionel Cannon, 49, of Cleveland, Ohio, currently incarcerated;
- Cecil Pinnix, 45, of Pittsburgh, PA, currently incarcerated;
- Misha Cannon, 44, of San Bernardino, CA, currently incarcerated;
- Jason Hunter, 40, of Los Angeles, CA, currently incarcerated;
- Tieriq Pinnix, 21, of Pittsburgh, PA;
- Devonte White, 22, of Pittsburgh, PA, currently incarcerated;
- Ellis Harris, 45, of Pittsburgh, PA, currently incarcerated;
- Aaron Reed, 34, of Wilkinsburg, PA, currently incarcerated;
- Douglas Smith, Jr., 43, of Penn Hills, PA, currently incarcerated;
- Gregory Price, 38, of Penn Hills, PA, currently incarcerated;
- Anthony Donald, 47, of Pittsburgh, PA;
- Michael Lyons, 39, of Pittsburgh, PA; and
- William Blair, 33, of New Kensington, PA.
According to the second superseding indictment, from in and around December 2013, and continuing thereafter to in and around August 2014, in the Western District of Pennsylvania and elsewhere, with the exception of William Blair, the defendants conspired to possess with intent to distribute and distribute five kilograms or more of cocaine. Also according to the superseding indictment, during that same time frame, Lionel Cannon, Cecil Pinnix, Ellis Harris, Douglas Smith, Jr., and William Blair conspired to possess with intent to distribute and distribute 100 grams or more of heroin.
For all defendants except for William Blair, the law provides for a maximum sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. For Blair, the law provides for a maximum sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both.
The second indictment (superseding), containing three counts, named:
- Tracey Yancey, 52, of Pittsburgh, PA;
- John Alexander, 50, of Pittsburgh, PA, currently incarcerated;
- Andre Collington, 43, of Pleasant Hills, PA, currently incarcerated;
- David Irwin, 43, of White Oak, PA, currently incarcerated;
- Abdul Boyd, 38, of Penn Hills, PA;
- Brittanie Dickerson, 25, of Penn Hills, PA;
- Lavon Hudgins, 44, of Wilkinsburg, PA;
- Sidney Pinnix, 48, of Pittsburgh, PA, currently incarcerated;
- Lamaca Davis, 42, of Pittsburgh, PA;
- Edwina Yancey, 30, of Pittsburgh, PA;
- James McCray, 37, of Pittsburgh, PA;
- Keith Beck, 22, of Penn Hills, PA;
- Kelvin Whittle, 56, of Wilkinsburg, PA;
- John Phillips, 34, of Wilkinsburg, PA;
- Damien Petty, 52, of Verona, PA; and
- Aaron Atkins, 33, of Penn Hills, PA.
According to the indictment, from in and around December 2013, and continuing thereafter to in and around August 2014, the defendants (not including Edwina Yancey) conspired to possess with intent to distribute and distribute cocaine; Tracey Yancey, John Alexander, David Irwin, Abdul Boyd, James McCray, and Aaron Atkins are charged with conspiring to possess with intent to distribute and distribute 500 grams or more of cocaine. Also according to the indictment, on July 28, 2014, Tracey Yancey, a convicted felon, unlawfully possessed a firearm. Also according to the indictment, on July 28, 2014, Edwina Yancey falsified a firearms purchase form in connection with the purchase of that firearm (i.e., was involved in the straw purchase of the gun).
The law provides for a maximum sentence on the drug charges of not less than five years and up to 40 years in prison, a fine of $2,000,000, or both. The law provides for a maximum sentence on the firearms charges of up to 10 years in prison, a fine of $250,000, or both.
The third superseding indictment, containing one count, named:
- John Alexander, 50, of Pittsburgh, PA, currently incarcerated;
- Andre Collington, 43, of Pleasant Hills, PA, currently incarcerated;
- Roxanne Thompson, 26, of Pittsburgh, PA;
- Mark Spearman, 33, of Pittsburgh, PA;
- Harold Neal, 53, of Pittsburgh, PA;
- Larry Washington, 63, of Wilkinsburg, PA;
- Cora Everett, 45, of Pittsburgh, PA;
- Roger Dorsey, 32, of West Mifflin, PA; and
- Paul Wheat, 42, of Pittsburgh, PA.
According to the indictment, from in and around December 2013, and continuing thereafter to in and around August 2014, the defendants conspired to possess with intent to distribute and distribute crack cocaine. John Alexander and Andre Collington are charged with conspiring to possess with intent to distribute and distribute more than 28 grams of crack cocaine.
The law provides for a maximum sentence of not less than 5 years and up to 40 years in prison, a fine of $5,000,000, or both.
The fourth superseding indictment, containing four counts, named:
- Sekou Brooks, 38, of Pittsburgh, PA;
- Abdul Qawee Daniels, 38, of Monroeville, PA;
- Eddie Garrett, 43, of Clarksburg, WV;
- David Earl Hamilton, 35, of Clarksburg, WV; and
- Kadesha Marie Mitchell, 37, of Pittsburgh, PA.
According to the superseding indictment, from in and around December 2013, and continuing to in and around June 2014, in the Western District of Pennsylvania and elsewhere, defendants Sekou Brooks, Abdul Daniels, David Earl Hamilton, and Kadesha Marie Mitchell conspired to distribute and possess with the intent to distribute 280 grams or more of crack cocaine. Also according to the superseding indictment, on or about March 20, 2014, defendants Eddie Garrett and David Earl Hamilton possessed with intent to distribute 28 grams or more of crack cocaine. Finally, on or about Aug. 19, 2014, Sekou Brooks, a convicted felon, unlawfully possessed a firearm, and possessed with intent to distribute quantities of crack cocaine and powder cocaine.
With the exception of defendant Garrett, the law provides for a maximum total sentence of not less than 10 years and up to life in prison, a fine of $10,000,000, or both. For defendant Garrett, the law provides for a maximum total sentence of not less than 5 years and up to 40 years in prison, a fine of $5,000,000, or both.
A fifth indictment, containing two counts, named Ronald Broadus, 41, of Penn Hills, PA. According to the indictment, from on or about May 1, 2014, and continuing thereafter to on or about May 28, 2014, Ronald Broadus conspired to distribute and to possess with intent to distribute crack cocaine and heroin. Also according to the indictment, the defendant conspired with others to possess and carry a firearm in furtherance, and during and in relation to, a drug trafficking crime.
The law provides for a maximum sentence of 50 years in prison, a fine of $2,250,000, or both.
A sixth indictment, containing one count, named Dwayne Allen, a/k/a Dewayne Allen, 40, of Pittsburgh, PA. According to the indictment presented to the court, on or about Dec. 5, 2013, and Jan. 28, 2014, in the Western District of Pennsylvania, Allen distributed and possessed with the intent to distribute crack cocaine. In addition, on or about Feb. 14, 2014, Allen distributed and possessed with the intent to distribute 28 grams or more of crack cocaine.
The law provides for a maximum total sentence of not less than five years and up to 40 years in prison, a fine of $5,000,000, or both.
A seventh indictment, containing one-count, named William Lowe, 36, of Pittsburgh, PA. According to the indictment presented to the court, on or about Nov. 6, 2013, in the Western District of Pennsylvania, Lowe distributed and possessed with the intent to distribute crack cocaine.
The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the individual defendant.
Assistant United States Attorneys Troy Rivetti and Tonya Sulia Goodman are prosecuting these cases on behalf of the government.
The Federal Bureau of Investigation, the FBI Greater Pittsburgh Safe Streets Task Force, including the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Inspection Service, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, Pennsylvania Office of the Attorney General, Munhall Police Department, Duquesne Police Department, Monroeville Police Department, Allegheny County Police Department, West Mifflin Police Department, Bellevue Police Department, and the Pittsburgh Bureau of Police conducted the investigation leading to the indictments in this case
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Acoma Pueblo Man Sentenced to Fifteen Months for Failure to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Mervin Hayah, 47, a member and resident of Acoma Pueblo, N.M., was sentenced this morning in federal court to 15 months in federal prison followed by five years of supervised release for failing to comply with the Sex Offender Registration and Notification Act (SORNA).
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Hayah was arrested on Nov. 20, 2013, in Grants, N.M., on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. On Dec. 17, 2013, Hayah was indicted for failing to update his registration between July 2013 and Oct. 2013 in Cibola County, N.M.
Court filings reflect that Hayah was convicted of a federal child sexual abuse offense in April 2002. On July 15, 2011, Hayah registered as a sex offender in Cibola County, N.M., and on April 29, 2013, he registered as a sex offender with the Acoma Pueblo Police in Acoma Pueblo. When he registered with Acoma Pueblo, Hayah was informed that he was required to update his registration by July 29, 2013, and Hayah failed to update his registration as required.
Hayah pled guilty to the indictment on Jan. 22, 2014.
This case was investigated by the U.S. Marshals Service and was prosecuted by Assistant U.S. Attorneys Novaline D. Wilson and David Adams.
4 March 2015
Xplor Energy Sentenced for Felony Clean Water Act ViolationRead the Press Release
XPLOR Energy SPV-1, Inc. (“XPLOR”), an Oklahoma corporation based in Southlake, Texas, was sentenced today for violating the Clean Water Act. U.S. District Judge Sarah S. Vance sentenced the company to serve three years of probation and pay a $3.1 million monetary penalty. The monetary penalty includes payments of $2.5 million to the United States Treasury, $600,000 to the Louisiana Department of Environmental Quality Trust Fund. In November 2014, XPLOR pled guilty to one felony count of knowingly discharging produced water in the Breton Sound Area of the Gulf of Mexico in violation of the Clean Water Act, Title 33, United States Code, Section 1319(c)(2)(A).
According to court documents, from on or about November 24, 1997, until November 18, 2011, XPLOR operated the MP 35 offshore facility (“MP 35 Platform”). XPLOR operated the MP 35 Platform for the purpose of extracting oil and natural gas.
As part of the oil and gas production, separation and processing, XPLOR was tasked with disposing of the pollutant known as “produced water” or “brine” which is produced with the extracted oil and natural gas. The MP 35 Platform was designed to dispose of this pollutant by forcing the produced water, under pump generated pressure, into disposal/injection wells located in Gulf of Mexico waters near the MP 35 Platform.
In or near November 2011, XPLOR transferred ownership and operation to another corporation. The platform’s new owner quickly discovered the platform was continuously discharging produced water containing oil and other harmful substances into the waters of the United States. The new owner immediately contacted regulatory authorities to report the discharge. The ensuing investigation revealed that XPLOR had knowingly discharged produced water containing oil into waters of the United States without any permit from faulty injection lines/pipes leading from the platform to the disposal wells used to store the produced water containing oil, and from produced water disposal wells which had insufficient capacity to hold the produced water. Despite knowing of this consistent discharge from the injection lines and the insufficient capacity of their disposal wells, XPLOR failed to adequately repair these faulty injection lines and disposal wells. XPLOR’s intentional failure to make these repairs resulted in the repeated discharge of produced water containing oil into the waters of the United States from in or near October 2009, and continuing through to November 18, 2011. XPLOR’s actions resulted in a total monetary savings or gain to them in the amount of approximately $1,550,000.
“Our Office will continue to work with its law enforcement partners to pursue charges against individuals and corporations whose illegal conduct threatens our region’s natural resources and public health,” stated U.S. Attorney Kenneth A. Polite.
“Developing domestic sources of energy must be done responsibly and safely,” said Daniel J. Pflaster, Acting Special Agent in Charge of EPA’s criminal enforcement program in Louisiana. “EPA will continue to work with its law enforcement partners to hold companies accountable for illegal conduct, and to assure compliance with laws that protect the public and the delicate Gulf Coast ecosystem from harm.”
“The Louisiana Department of Environmental Quality will not tolerate any business, corporation or individual that bypasses state and federal laws for personal, professional or monetary gain,” stated Peggy Hatch, Secretary of the Louisiana Department of Environmental Quality. “We take unpermitted discharges very seriously and will continue to aggressively prosecute those found to be in violation of environmental regulations.”
U.S. Attorney Polite praised the work of the Criminal Investigation Division of the United States Environmental Protection Agency (“EPA-CID”) and the Criminal Investigation Division of the Louisiana Department of Environmental Quality (“DEQ-CID”) in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Worship Minister Pleads Guilty to Receipt of Child PornographyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Mark Daniel DeHaven (33, Winter Garden) has pleaded guilty to one count of receipt of child pornography. He faces a mandatory minimum of five, up to 20 years, in federal prison. His sentencing hearing is scheduled for May 21, 2015. DeHaven was arrested and made his initial appearance in federal court on October 30, 2014.
According to the plea agreement, on April 8, 2014, the Winter Garden Police Department received a report from the Seminole County Sheriff’s Office about a cyber-crime tip from the National Center for Missing and Exploited Children. The tip concerned child pornography that was being sent or attempting to be sent over the Internet. Further investigation traced the information to DeHaven’s residence. On June 10, 2014, law enforcement executed a search warrant at DeHaven’s residence and seized several computers and electronic media. Forensic analyses of the equipment revealed that DeHaven had received images depicting children engaging in sexually explicit conduct. During the change of plea hearing, DeHaven acknowledged that, prior to his arrest, he was leading worship for a church.
This case was investigated by the Federal Bureau of Investigation and the Winter Garden Police Department. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Wisconsin Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
A Wisconsin man pled guilty to one count of conspiring to distribute methamphetamine February 27, 2015, in federal court in Cedar Rapids, Iowa.
During the conspiracy, from January 2012 through December 2014, Ryan Michael Schroeder, age 26, from LaCrosse, Wisconsin, conspired to distribute 500 grams or more of methamphetamine. Schroeder conducted transactions involving multiple ounce quantities of methamphetamine in Hampton and Mason City, Iowa. Schroeder was also delivering and selling methamphetamine to numerous persons in Minnesota.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Schroeder remains in custody of the United States Marshal; was taken into custody by the United States Marshal after the guilty plea and pending sentencing. Schroeder faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, a $100 special assessment, and 5-years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the North Central Iowa Narcotics Task Force, Cerro Gordo County Sheriff’s Office, Mason City Police Department, Iowa Division of Narcotics Enforcement, and Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-3071.
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Waterbury Resident Pleads Guilty to Enticing A Minor He Met at ChurchRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MIGUEL TORRES, 45, of Waterbury, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in Bridgeport to one count of enticing a minor female to send him sexually explicit videos and pictures of herself.
According to court documents and statements made in court, TORRES met a minor female at the church they both attended. TORRES offered to mentor the minor, gave her his cell phone number, and they began communicating via text messages. In late June 2013, when the minor was 14 years old, TORRES began to ask the minor to send him sexually explicit videos and pictures. Their text message conversations became sexually explicit, and TORRES persuaded the minor to take sexually explicit videos and pictures of herself and send them to him. TORRES also sent the minor sexually explicit videos and pictures of himself, and he told her that he had engaged in sexual conduct with other girls so that the minor would be comfortable with it.
Judge Meyer scheduled sentencing for May 27, 2015, at which time TORRES faces a mandatory minimum term of imprisonment of 10 years, a maximum term of imprisonment of life, and a fine of up to $250,000.
TORRES has been detained since his arrest on related state charges on August 30, 2013.
This matter is being investigated by the Waterbury Police Department and Homeland Security Investigations. The Connecticut State’s Attorney’s Office in Waterbury is also providing critical assistance in this investigation. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]United States Assists Korean Authorities in Recovering over $28.7 Million in Corruption Proceeds of Former President of the Republic of KoreaRead the Press Release
The Department of Justice has reached a settlement of its civil forfeiture cases against $1.2 million in assets in the United States traceable to corruption proceeds accumulated by Chun Doo Hwan, the former president of the Republic of Korea. The department also assisted the government of the Republic of Korea in recovering an additional $27.5 million in satisfaction of an outstanding criminal restitution order against former President Chun.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Director Sarah R. Saldaña of U.S. Immigration and Customs Enforcement (ICE) and Assistant Director in Charge David Bowdich of the FBI’s Los Angeles Field Office made the announcement after the settlement was signed and papers requesting that the court execute the agreement were filed with the U.S. District Court for the Central District of California.
“Chun Doo Hwan’s campaign of corruption and bribery while serving as Korea’s president betrayed the trust of the Korean people, deprived Korea’s government of precious resources and undermined the rule of law,” said Assistant Attorney General Caldwell. “Fighting corruption is a global imperative that demands a coordinated global response. The close cooperation between the United States and Korea in successfully recovering corruption proceeds stands as a testament to our resolve to battle the scourge of corruption through international collaboration.”
“Former Korean President Chun violated the trust of the people of Korea,” said Director Saldaña. “The results in this case reflect the outstanding international cooperation that exists between U.S. law enforcement and the government of Korea.”
"The U.S. will not idly standby and serve as a money laundering haven for foreign officials to hide corrupt activities,” said Assistant Director in Charge David Bowdich. “The FBI will continue to collaborate with our foreign partners by leveraging its resources in order to identify those engaged in foreign corruption and to recover their ill-gotten gains.”
According to court documents, President Chun was convicted in Korea in 1997 of receiving more than $200 million in bribes from Korean businesses and companies. President Chun and his relatives laundered some of these corruption proceeds through a web of nominees, trusts and shell companies in both Korea and the United States.
Under the terms of the U.S. settlement, $1,116,951.45 in assets will be forfeited to the United States. During the joint U.S.-Korean investigation, approximately $27.5 million in additional funds were paid by an associate of former President Chun to the Korean government to partially settle the judgment entered against former President Chun upon his criminal conviction. Including the settlement announced today, the U.S. and Korean authorities have recovered more than $28.7 million in connection with Korea’s investigation and prosecution of former President Chun.
The investigation was conducted jointly by the FBI’s West Covina Resident Agency of the Los Angeles Division, ICE’s Homeland Security Investigations’ (HSI) Philadelphia Office, HSI's Attaché in Seoul, South Korea and the FBI Kleptocracy Program of the International Corruption Unit within the Criminal Investigation Division. The case is being prosecuted by Trial Attorneys Woo S. Lee and Della Sentilles of the Criminal Division’s Asset Forfeiture and Money Laundering Section, Assistant U.S. Attorneys Katharine Schonbachler and Steven R. Welk of the Central District of California, and Assistant U.S. Attorneys Joseph Minni and Alvin Stout of the Eastern District of Pennsylvania. The Criminal Division’s Office of International Affairs provided substantial support.
The department is grateful for the significant assistance provided by the Seoul Central District Public Prosecutor’s Office, Korea’s Supreme Prosecutor’s Office - Anti-Corruption Supervisory Division and the Ministry of Justice’s International Criminal Affairs Division in investigating and forfeiting these corruption proceeds.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Chun Executed Agreement
Chun Notice of Settlement
Union County, New Jersey, Youth Organization Leader Charged with Possessing Images of Child Sexual AbuseRead the Press Release
NEWARK, N.J. – A Linden, New Jersey, man who was a leader in a boys youth organization and a religious education teacher was charged today with possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Gregory J. Aker, 45, is charged by complaint with one count of possessing child pornography. He is currently in state custody and is scheduled to appear in Newark federal court on March 12, 2015 before U.S. Magistrate Judge Mark Falk.
According to the complaint filed in court today:
Aker was a leader with a boys youth organization and a religious education teacher with his church. On Feb. 22, 2014, Aker was arrested by the Linden Police Department for sexual assault and endangering the welfare of two minor children. After his arrest, law enforcement obtained multiple computers and electronic storage media from Aker’s residence. These devices contained approximately 1,240 images and 43 videos of child pornography, including images of prepubescent children being sexually abused.
The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine.U.S. Attorney Fishman credited Special Agents with the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, the New Jersey Regional Computer Forensics Laboratory, the Union County Prosecutor’s Office and the Linden Police Department with the investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Criminal Division in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty
15-077
Defense counsel: TBD
Two St. Thomas Men Sentenced to Prison for Firearm PossessionRead the Press Release
St. Thomas, USVI – District Court Judge Curtis V. Gomez, on March 4, 2015, sentenced Desi Henry, Jr., 21, to 40 months in prison for possession of a firearm with an obliterated serial number, and Jibri Roberts, 22, to five months in prison for possession of a firearm within a school zone, United States Attorney Ronald W. Sharpe announced today.
According to court records, both men were in possession of three firearms that were discovered after a traffic stop on September 24, 2014 on Veterans Drive, St. Thomas.
On December 8, 2014, Roberts pleaded guilty to possession of a firearm in a school zone and Henry pleaded guilty to possession of a firearm with an obliterated serial number and possession of an unlicensed firearm. Judge Gomez sentenced Henry to 40 months in prison on each of the two gun charges, with both sentences to run concurrently. He also sentenced Henry to three years of supervised release and Roberts to one year of supervised release.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It was prosecuted by Assistant U.S. Attorney Sigrid M. Tejo-Sprotte.
Two Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Teresa Jones Tubbs, 45, and Richard Terrell Underwood, 30, both of Marion, Alabama, were sentenced today in federal court for actions which furthered the operation of a drug trafficking conspiracy from 2009 through June of 2014. Tubbs and Underwood pled guilty to the federal charge of misprision of a felony, an offense which requires proof that each had knowledge of illegal activity, each engaged in conduct which concealed the illegal activity, and that neither reported the illegal activity to the appropriate authority. The charge, itself a felony, carries a penalty of up to three years’ imprisonment, a supervised release term of one year, a $250,000 fine and a $100 special mandatory assessment.
United States District Court Judge Kristi K. Dubose imposed a sentence of three years’ probation in each case. Each defendant was ordered to undergo testing and treatment for drug abuse while on supervised release. No fine was imposed, but the judge ordered that each defendant pay the special mandatory assessment of $100.
The case was investigated by the 4th Judicial Circuit Task Force, the Alabama Attorney General’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney=s Office by Assistant United States Attorney Gloria Bedwell.
Two Executives Indicted for Scheming to Defraud Chicago and Other Governments of Grant Funds Intended to Establish Charging Stations for Electric VehiclesRead the Press Release
CHICAGO — Owners of a green tech startup company that installed and maintained charging stations for plug-in electric vehicles were indicted yesterday for allegedly engaging in a scheme to fraudulently obtain federal and state grant funds, from the City of Chicago, the State of Pennsylvania Department of Environmental Protection, and two California entities: the Bay Area Air Quality Management District, and the Association of Bay Area Governments.
Defendants Mariana Gerzanych, 36, and Timothy Mason, 58, both of California, were co-owners of 350Green LLC of Los Angeles, California, which purported to install and maintain charging stations for plug in electric vehicles. Between 2010 and 2012, 350Green obtained over $2.9 million in grants from the City of Chicago, the Pennsylvania Department of Environmental Protection, the Association of Bay Area Governments, and the Bay Area Air Quality Management District, to install and maintain public electric vehicle charging stations.
Gerzanych and Mason were each charged with five counts of wire fraud in an indictment returned by a federal grand jury yesterday and announced today. They will appear before U.S. District Court for arraignment at a later date. According to the indictment, between August 2010 and September 2012, as principals of 350Green, Mason and Gerzanych applied for and received over $2.9 million in grants from the City of Chicago, the Pennsylvania Department of Environmental Protection, the Association of Bay Area Governments, and the Bay Area Air Quality Management District. The grant funds were intended to support installation and operation of charging stations for electric vehicles. In particular, the indictment alleges that, in order to obtain grant funds, Mason and Gerzanych falsely claimed that a company called Actium Power had supplied Level 3 DC fast chargers to 350Green and that 350Green had paid Actium Power for those chargers, when in fact Actium Power did not supply the chargers, and the actual manufacturer of the chargers was never paid. Further, the indictment alleges that, in order to obtain the grant funds, 350Green submitted claims to the City of Chicago falsely representing that subcontractors and vendors had been paid when in fact, they had not.
As a result of Mason and Gerzanych’s false claims, the City of Chicago and the State of Pennsylvania Department of Environmental Protection paid 350Green. In order to cover up the scheme, the indictment further alleges that Mason and Gerzanych made false statements to 350Green’s governmental partners regarding 350Green’s financial status and reasons for 350Green’s financial difficulties.
Each count of the indictment carries a maximum penalty of 20 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines. The indictment also seeks forfeiture of approximately $1.9 million.
“These grant funds were intended to help communities live in a more eco-friendly way. The Department of Justice will not tolerate fraud at the expense of such an important mission,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois.
“There will always be those who see innovation as just another mark for fraud and deception, so we are gratified by the continuing collaboration with our federal partners in stopping old school exploitation of new programs directed at tomorrow's challenges,” said Inspector General Joseph Ferguson.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Joseph Ferguson, Inspector General for the City of Chicago; and John R. Hartman, Deputy Inspector General for Investigations of the U.S. Department of Energy Office of Inspector General. Also participating in the investigation was the Harrisburg, Pennsylvania Office of the Federal Bureau of Investigation.
The government is being represented by Assistant United States Attorney Maureen E. Merin.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Two Connecticut Men Sentenced to Federal Prison for Scheme to Bribe FBI Agent in New YorkRead the Press Release
Two Connecticut-area men were sentenced to federal prison today for their roles in a bribery scheme to obtain confidential, internal law enforcement documents and information from a former FBI Special Agent in White Plains, New York.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Justice Department Inspector General Michael E. Horowitz made the announcement. The sentences were imposed by U.S. District Judge Vincent L. Briccetti of the Southern District of New York.
Rizve Ahmed, aka “Caesar,” 36, of Danbury, Connecticut, and Johannes Thaler, 51, of New Fairfield, Connecticut, were sentenced to 42 months in prison and 30 months in prison, respectively. In October 2014, both defendants pleaded guilty to bribery and conspiracy to commit wire fraud and honest services fraud.
In pleading guilty, Thaler and Ahmed admitted that, from September 2011 through March 2012, Thaler and FBI Special Agent Robert Lustyik solicited payments from Ahmed, in exchange for Lustyik’s agreement to provide internal, confidential documents and other confidential information to which Lustyik had access by virtue of his position as an FBI Special Agent. Thaler was Lustyik’s friend, and Ahmed, a native of Bangladesh, was an acquaintance of Thaler. The confidential documents and information pertained to a prominent citizen of Bangladesh who was affiliated with a political party opposing Ahmed’s views. Ahmed requested the confidential information to help him locate and harm his political rival and others associated with the intended victim.
As part of the scheme, Lustyik and Thaler exchanged text messages about how to pressure Ahmed to pay them additional money in exchange for confidential information. For example, in text messages, Lustyik told Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” Thaler responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
Additionally, in late January 2012, Lustyik learned that Ahmed was considering using a different source to obtain confidential information. In response, Lustyik sent a text message to Thaler stating, “I want to kill C [Ahmed] . . . . I hung my ass out the window n we got nothing? . . . . Tell [Ahmed], I’ve got [the victim’s] number and I’m pissed. . . . I will put a wire on n get [Ahmed and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to [the victim].” Lustyik further stated, “So bottom line. I need ten gs asap. We gotta squeeze C.”
Lustyik pleaded guilty on Dec. 23, 2014, to all five counts against him in the indictment: conspiracy to engage in a bribery scheme; soliciting bribes by a public official; conspiracy to defraud the citizens of the U.S. and the FBI; theft of government property; and unauthorized disclosure of a Suspicious Activity Report. He is scheduled to be sentenced by Judge Briccetti on April 30, 2015, at 9:30 a.m.
The case was investigated by the Department of Justice Office of the Inspector General, and prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Benjamin Allee of the Southern District of New York.
Teacher Sentenced to 5 Years in Prison for Child Pornography OffenseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH RAJKUMAR, 44, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 60 months of imprisonment, with credit for time already served, and 10 years of supervised release. RAJKUMAR has been detained since January 2014.
According to court documents and statements made in court, in approximately April 2011, RAJKUMAR, who was a science teacher and advisor to the Science Olympiad team at Miss Porter’s School in Farmington, befriended a minor female victim who was a student at the school. Before the victim left the school for summer break in June 2011, RAJKUMAR pressured her to create an anonymous email account that did not contain her name, which she eventually did. RAJKUMAR had already created an anonymous email account for his own use, in violation of the school’s policy that teachers and students should communicate via email only through a school-sponsored website. Through the email accounts, RAJKUMAR and the victim frequently engaged in video chats and, during the chats, RAJKUMAR made multiple attempts to get the victim to remove her shirt. The victim initially resisted, but eventually succumbed to RAJKUMAR’s advances and exposed her chest to him through the video chat.
Beginning in approximately November 2011, RAJKUMAR and the victim engaged in a sexual relationship that lasted several months. The investigation revealed evidence of numerous video chats that took place through at least April 2012. In the chats, RAJKUMAR frequently made lascivious comments to the victim and pressured her to expose herself.
The investigation further revealed that RAJKUMAR had also begun to harass other young girls at the school in person and through electronic communications. He told one female student via text message that she looked “hot” in the pants she was wearing at a school event and told another that she should create an anonymous email account so that they could do “naughty things” that were “secret.” In total, RAJKUMAR corresponded with at least six victims, including the one victim with whom he eventually had sexual intercourse. RAJKUMAR asked at least one of the other victims to start a physical relationship with him.
On November 18, 2014, RAJKUMAR pleaded guilty to one count of attempted receipt of child pornography.
RAJKUMAR also pleaded guilty in state court to sexual assault in the second degree and, in January 2014, was sentenced to 10 years of incarceration, execution suspended after 18 months, and 10 years of probation.
This matter was investigated by Homeland Security Investigations and the Farmington Police Department. The case was prosecuted by Assistant U.S. Attorney Sarala V. NagalaPUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]St. Charles Parish Tax Preparer Sentenced to 18 Months ImprisonmentRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LASHANDA VINNETT, age 30, of Destrehan, was sentenced today for conspiracy to defraud the United States and, specifically, the Internal Revenue Service.
United States District Court Judge Ivan L.R. Lemelle sentenced VINNETT to 18 months incarceration, 3 years supervised release and restitution in the amount of $1,092,681.43 to the United States. On October 21, 2014, co-defendant CATHY VINNETT, LASHANDA’s mother, was sentenced to 41 months incarceration.
According to court documents, CATHY VINNETT opened the D&C Tax Service in 2006, and in 2008, CATHY VINNETT and LASHANDA VINNETT (“the VINNETTs”) created River Parish Tax Professionals (“River Parish”). River Parish was established by the VINNETTs for the purpose of filing fraudulent tax returns. The VINNETTs, through their company, River Parish, filed approximately 310 tax returns which falsely claimed the First-Time Homebuyer Credit, the Earned Income Tax Credit, as well as the listing of false dependents, resulting in approximately $1.845 million in fraudulent tax refunds. Prior to today’s proceeding, the IRS seized approximately $482,000 in illegal proceeds from bank accounts controlled by the VINNETTs. In addition, the IRS successfully detected and prevented approximately $270,000 in intended fraudulent refunds before they were processed.
The VINNETTs utilized recruiters to locate potential clients. These recruiters advised potential clients that the federal Government was giving out stimulus money and instructed the individuals to visit River Parish in order to obtain their money. The VINNETTs would interview clients at their office in LaPlace, Louisiana, to obtain their personal information including their name, address, and Social Security Number. The VINNETTs used that personal information to file false tax returns. The clients had no knowledge that the VINNETTs were filing false returns in their names.
Further, the VINNETTs specifically attempted to conceal and shield CATHY’s identity from the IRS, knowing that the IRS had previously suspended CATHY’s Electronic Filing Identification Number as a result of another fraudulent tax scheme involving D&C Tax Service.
“I want to commend the IRS-CI for their exemplary work investigating River Parish Tax Professionals and its owner, Cathy Vinnett, and her daughter, Lashanda Vinnett,” stated U.S. Attorney Kenneth A. Polite. “The U.S. Attorney’s Office will continue to work closely with our law enforcement partners to prevent fraud on any level and, in particular, those individuals who prepare and file fraudulent tax returns.”
Acting Special Agent in Charge, Jerome R. McDuffie, of the IRS – Criminal Investigation New Orleans Field Office, stated, “We are very pleased with the sentences imposed by the court in this matter. Cathy and Lashanda Vinnett used their business to defraud the government and to take advantage of unsuspecting taxpayers. Lengthy prison sentences will allow them ample time to consider the seriousness of their crimes. IRS-CI is diligent in our efforts to combat return preparer fraud. As filing season is still underway, I would like to encourage taxpayers to exercise caution when choosing a return preparer, and also to report those they suspect of wrongdoing.”
U.S. Attorney Polite praised the work of the Internal Revenue Service-Criminal Investigation Division in investigating this matter. Fraud Unit Chief and Assistant U. S. Attorney Brian M. Klebba and Assistant U.S. Attorney Matthew Payne were in charge of the prosecution.
Seven Members of Minneapolis-based Gang Charged in 31-count Indictment with Conspiracy to Distribute Crack Cocaine Throughout MinnesotaRead the Press Release
United States Attorney Andrew M. Luger, Minneapolis Police Chief Janeé Harteau and FBI Special Agent in Charge Richard Thornton today announced a federal indictment charging seven members of the Taliban gang and the Young N Thuggin (YNT) gang with conspiring to distribute crack cocaine in the Twin Cities and Greater Minnesota.1 The defendants include both leaders and other members of the two gangs. They are charged with conspiracy to distribute cocaine base (crack) and distribution of crack.
“Late last year we indicted more than a dozen members of two violent Minneapolis gangs, the 19-Dipset and Stick Up Boys,” said U.S. Attorney Luger. “We are today announcing a new indictment of their main rivals. Leaders and members of the Taliban and YNT are charged with using violence and intimidation to control a drug distribution operation stretching from Minneapolis to Fargo. Working closely with our law enforcement partners, we are continuing to investigate and stop drug dealers and the violence that too often accompanies their illegal activity.”
Minneapolis Police Chief Janeé Harteau said: “Today we see the results of a long term investigation into a violent street gang that has plagued the streets of Minneapolis for too long. As a result of our collaborative partnerships with our state and federal partners, several members of that gang are facing federal indictments for their long history of criminal activity. Today we say thank you to all of our partners for helping to make Minneapolis a safer city.”
"The FBI remains committed to combating gang violence and in keeping our streets safe,” said FBI Special Agent in Charge Richard Thornton. “Keeping citizens free from the specter of gang violence is a priority for the FBI and its local partners which comprise the Minnesota Safe Streets Task Force. The FBI and its partners in the Minnesota Safe Streets Task Force will continue to collaborate in targeting the worst offenders when it comes to gang violence in Minnesota."
Minnesota Bureau of Criminal Apprehension Superintendent Wade Setter said: “The BCA is committed to supporting multi-agency operations such as this. Today's events come as a result of our successful collaboration.”
According to the indictment and documents filed in court, between January and December 2014, the defendants were organizers and members of two closely associated street gangs, the Taliban and the YNT. Some of the indicted co-conspirators had more influence in the gang, based on their seniority and criminal activity. The gang members use hand gestures, social media, and specific language to communicate amongst each other and to convey membership. They claim an area of north Minneapolis as their territory, and other north Minneapolis gangs, including the 19- Dipset and Stick Up Boys, as enemies.
According to the indictment and documents filed in court, the Taliban and YNT are organized for the purpose of making money by trafficking in illegal drugs, among other criminal activity. Members of the Taliban and YNT frequently travel to St. Cloud and Duluth, Minnesota, and to Fargo, North Dakota, to sell crack. Crack that the Taliban and YNT could sell in Minneapolis for $20 could be sold for $50 in Greater Minnesota and in North Dakota. Similarly, an amount of crack cocaine sold for $150 in the Metro area would sell for between $220 and $250 in Greater Minnesota.
According to the indictment and documents filed in court, some of the members of the gang carry guns to protect themselves and their money while trafficking crack cocaine. They also use guns to both protect against attacks by rival gangs and to retaliate violently to threats or assaults by their rivals. Their use of weapons is intended to gain street supremacy and further the gang’s ability to sell illegal drugs.
The indictment is the result of an investigation conducted by the Safe Streets Task Force, which is comprised of federal and local law enforcement agencies, including, but not limited to, the FBI, Minneapolis Police Department, Minnesota Bureau of Criminal Apprehension and St. Paul Police Department. The St. Cloud Violent Crimes Task Force and the St. Cloud Police Department were a critical part of this investigation.
This case is being prosecuted by Assistant U.S. Attorney David Steinkamp.
Defendant Information: LOUIS LEE FRASIER BANKS, a/k/a “G.I.,” 25
Anoka County Jail
Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 10 counts
• Possession with Intent to Distribute Cocaine Base, 1 count
• Possession of a Firearm During and in Relation to a Drug Trafficking Crime, 1 count
• Felon in Possession of a Firearm, 1 count
CARNEL LAVEL HARRISON, a/k/a “Boo Man,” 26
Unknown
Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 4 counts
• Felon in Possession of a Firearm, 2 counts
• Distribution of Heroin, 1 count
DEJUAN PIERRE DARKYSE WASHINGTON, a/k/a “DJ,” 23
Unknown
Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 3 counts
• Felon in Possession of a Firearm, 1 count
TERRELL VONSHAY ROBERSON, a/k/a “Get Right,” a/k/a “Slim,” 18
Unknown
Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 5 counts
• Distribution of Heroin, 1 count
LAQUEDRICK LEMEL AS-SIDIQ, a/k/a “Quady,” a/k/a “C,” 25
Unknown
Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 4 counts
DONTE TRAMAYNE SMITH, a/k/a “Five,” 25
Unknown
Charges: • Conspiracy to Distribute Crack Cocaine, 1 count
• Distribution of Cocaine Base, 4 counts
CORTEZ DAVON BLAKEMORE, a/k/a “Tez,” 24
Minneapolis, Minn.
Charges: • Felon in Possession of a Firearm, 1 countTaliban-YNT Indictment
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Seven Individuals Indicted in Multimillion-Dollar Business Opportunity Fraud ScamRead the Press Release
Scheme Victimized More Than 1,000 Individuals throughout the United States
The Justice Department announced today the unsealing of an indictment charging seven individuals in connection with a vending machine “business opportunity” that defrauded thousands of victims across the country. The indictment was returned by a federal grand jury in New York City. The following individuals were named as defendants in the indictment:
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Kenneth Levin, 68, of New York City, Founder and President
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Taylor Levin, 33, of New York City, Manager and Sales Representative
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Sears Hobbs, 51, of New York City, Sales Representative
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James Conley, 58, of Brooklyn, New York, Sales Representative
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Marcel Harris, 51, of Brooklyn, Sales Representative
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Steve Friedman, 78, of New York City, Sales Representative
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Jonathan Campbell, 76, of New York City, Sales Representative
Each of the defendants is charged with conspiracy to commit mail and wire fraud, mail fraud, and wire fraud. Each charge carries a statutory maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
The indictment alleges that Kenneth Levin, Taylor Levin and their sales representatives made material misrepresentations about the profits customers would make from vending machines and the locations customers would receive for vending machines. As part of the purported business opportunity package, they offered to sell to customers vending machines for which pre-established, high-profit locations were already identified, and to connect customers with experienced “locators,” who would facilitate placing the vending machines in those pre-determined locations. They further promised to provide training and ongoing customer assistance in how to operate a successful vending machine business and assured customers that they would earn significant profits from the vending machines in a relatively short period of time.
The defendants are also alleged to have misled prospective customers about the profits customers could earn from the machines. They assured prospective customers that they would earn significant profits from the vending machines in a relatively short period of time. Several of the defendants also misled customers into believing that the defendants personally owned vending machines which were profitable. They made these assertions knowing that there were scores of dissatisfied customers who, rather than making any profit, had lost their entire investment. Through their scheme, the business opportunity companies obtained nearly $9 million from more than 1,300 customers throughout the United States.
“Business opportunity fraud insidiously targets Americans in search of a better future for their families,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “Instead of becoming successful entrepreneurs, customers become victims, and often lose their life’s savings.”
“As alleged, the defendants preyed on prospective customers by inventing facts and making false promises to make a proposed vending machine ‘business opportunity’ appear more attractive,” said U.S. Attorney Preet Bharara of the Southern District of New York. “As I have noted before, we are taking a close look at fraud that targets consumers and we will aggressively prosecute such conduct wherever we find it.”
“These arrests occurring during National Consumer Protection Week offer a great opportunity for us to highlight our message of fraud prevention,” said Inspector in Charge Ronald J. Verrochio of the U.S. Postal Inspection Service (USPIS) Miami Office. “We will continue to investigate these frauds however; consumers need to protect themselves from these frauds by proceeding carefully when investing their money.”
The indictment states that during the conspiracy, the Levins and their sales representatives encouraged prospective customers to contact locating companies to verify that the routes were available. The operators of locating companies were directed to echo the false statements made to customers and affirm that high-traffic, and therefore profitable, locations had already been found and were waiting in the prospective customers’ respective geographic areas.
The indictment alleges that, in reality, the locating companies who worked with the business opportunity company did not have high-traffic locations or routes waiting in the prospective customer’s area. The locating companies had no special skills, tools or expertise in finding locations and generally placed consumers’ machines wherever they could, often in businesses that had not consented to housing the machines or that soon demanded that the machines be removed. The vending machines generated little business and customers lost nearly all, if not all, of their investments.
Acting Assistant Attorney General Mizer and U.S. Attorney Bharara praised USPIS for their outstanding work in the investigation.
This matter is being handled by the U.S. Attorney’s Office of the Southern District of New York’s Complex Frauds Unit. Assistant U.S. Attorneys Janis Echenberg and Jennifer Beidel of the Southern District of New York and Trial Attorney Jessica Gunder of the Civil Division’s Consumer Protection Branch are prosecuting the case.
The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
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Seven Individuals Charged in Manhattan Federal Court in Connection with Multimillion-Dollar Vending Machine “Business Opportunity” SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division, and Ronald J. Verrochio, the Inspector-in-Charge of the Miami Office of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment in Manhattan federal court charging KENNETH LEVIN, the owner of a company that purported to sell lucrative vending machine “business opportunities,” and six employees of the company, TAYLOR LEVIN, SEARS HOBBS, JAMES CONLEY, MARCEL HARRIS, STEPHEN FRIEDMAN, and JONATHAN CAMPBELL, for their alleged participation in a nearly $9 million scheme that victimized at least 1,300 consumers across the country. KENNETH LEVIN, TAYLOR LEVIN, SEARS HOBBS, JONATHAN CAMPBELL, and STEPHEN FRIEDMAN were taken into custody earlier this morning and will be presented before to U.S. District Judge Katherine B. Forrest, to whom the case is assigned. MARCEL HARRIS and JAMES CONLEY remain at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants preyed on prospective customers by inventing facts and making false promises to make a proposed vending machine ‘business opportunity’ appear more attractive. As I have noted before, we are taking a close look at fraud that targets consumers and we will aggressively prosecute such conduct wherever we find it.”
Acting Assistant Attorney General Benjamin Mizer said: “Business opportunity fraud insidiously targets Americans in search of a better future for their families. Instead of becoming successful entrepreneurs, customers become victims, and often lose their life’s savings.”
USPIS Inspector-in-Charge Ronald Verrochio said: “These arrests occurring during National Consumer Protection Week offer a great opportunity for us to highlight our message of fraud prevention. We are committed to investigating these schemes and educating consumers on how to protect themselves from these types of frauds.”
According to the allegations contained in the Indictment and statements made in court:
From approximately January 2005 to December 2011, the defendants perpetrated a scheme to defraud more than 1,000 consumers by making material misrepresentations in an effort to induce those consumers to invest thousands of dollars in purported vending machine “business opportunities.” Through a company located in Manhattan, New York (“Company-1”), and its successor companies (the “Business Opportunity Companies”), the defendants and other employees falsely promised customers that if they purchased packages of five or ten vending machines, the customers would be provided access to pre-established, high-profit locations for the machines, and would be connected with experienced “locators,” who would facilitate placing the vending machines in those pre-determined locations. They further falsely promised to provide training and ongoing customer assistance on how to operate a successful vending machine business, and misled customers about the features of the vending machines – including purposefully concealing the fact that the machines were manually operated, accepting only exact change, rather than automatic machines that accept bills and provide change. Despite the defendants’ claims, there were no pre-determined locations available, locators were inexperienced and ill-equipped to find profitable locations for the vending machines, and the Business Opportunity Companies delivered little or no follow-up service or assistance to their customers.
The defendants also misled prospective customers about the profits customers could earn from the machines. They assured prospective customers that they would earn significant profits from the vending machines in a relatively short period of time. Several of the defendants also misled customers into believing that the defendants personally owned vending machines that were profitable. They made these assertions knowing that there were scores of dissatisfied customers who, rather than making any profit, had lost their entire investment. Through their scheme, the Business Opportunity Companies obtained nearly $9 million from more than 1,300 customers throughout the United States.
The Business Opportunity Companies also encouraged prospective customers to contact locating companies to verify that the purported locations were available. The operators of locating companies were directed to echo the false statements made to customers and affirm that high-traffic, and therefore profitable, locations had already been found and were waiting in the prospective customers’ respective geographic areas. In reality, the locating companies who worked with the Business Opportunity Companies did not have high-traffic locations or routes waiting in the prospective customer’s area. The locating companies had no special skills, tools, or expertise in finding locations and generally placed consumers’ machines wherever they could, often in businesses that had not consented to housing the machines or that soon demanded that the machines be removed. The vending machines generated little business and customers lost nearly all, if not all, of their investments.
KENNETH LEVIN, the founder and President of the Business Opportunity Companies, operated and controlled the Business Opportunity Companies’ day-to-day operations. To acquire customers, the Business Opportunity Companies placed advertisements in newspapers throughout the United States, claiming that the Business Opportunity Companies had high-profit locations available for the placement of vending machines. Prospective customers responding to the advertisements were sent misleading promotional materials and also spoke by telephone with representatives of the Business Opportunity Companies, including KENNETH LEVIN’s son, TAYLOR LEVIN, HOBBS, who used the aliases “Kelly Chase” and “Karen White,” to avoid association with customer complaints, CONLEY, HARRIS, FRIEDMAN, and CAMPBELL. Each of the defendants made various misrepresentations as described above to induce customers to buy the vending machine “business opportunity.” The defendants further concealed from prospective customers the fact that the Business Opportunity Companies received numerous complaints from customers about the lack of profitability of the vending machine “business opportunity” they were selling and the locators’ complete failure to place the vending machines in profitable locations. In an effort to conceal customer complaints from prospective customers, the Business Opportunity Companies changed their name regularly, both to avoid association with previous complaints, and to evade a federal law requiring them to provide prospective customers with a list of recent customers.
KENNETH LEVIN, 68, of Manhattan, New York; TAYLOR LEVIN, 33, of Manhattan, New York; HOBBS, 51, of Manhattan, New York; CONLEY, 58, of Brooklyn, New York; HARRIS, 51, of Brooklyn, New York; FRIEDMAN, 78 of Manhattan, New York; and CAMPBELL, 76, of Manhattan, New York, are each charged with one count of conspiracy to commit mail fraud and wire fraud, and one count each of mail fraud and wire fraud, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Bharara praised USPIS for their outstanding work in the investigation. Mr. Bharara also thanked the Justice Department’s Civil Division for its assistance.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Janis Echenberg and Jennifer Beidel, and Department of Justice Consumer Protection Branch Trial Attorney Jessica Gunder are in charge of the case.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Rockport Dentist Settles Federal Health Care Fraud ComplaintRead the Press Release
Contact: Andrew K. Lizotte
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Dr. Daniel P. Schecter, a dentist who provided services in Rockport, Maine, has paid $484,744.80 to settle claims involving improper billing to MaineCare (Maine’s Medicaid program).
After an investigation by the U.S. Attorney’s Office, the U.S. Department of Health and Human Services, and the Maine Attorney General’s Office throughout which Dr. Schecter cooperated, the United States and the State of Maine filed a civil complaint seeking monetary damages against Dr. Schecter alleging that he violated the federal False Claims Act from January 1, 2009 through November 19, 2012, by improperly billing MaineCare for services rendered without medical necessity and proper supporting documentation, for unsubstantiated tooth extractions and for narcotics prescribed without proper justification. The settlement amount represents the amount of monies improperly billed by Dr. Schecter and held in suspension by the Maine Department of Health and Human Services as a result of the investigation.
The investigation was conducted by the U.S. Attorney’s Office, the U.S. Department of Health & Human Services, Office of Inspector General, and the Attorney General’s Office of the State of Maine.
Rochester Woman Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr., of the Western District of New York, announced that Jennifer Gilbert, 47, of Rochester, New York, pleaded guilty before U.S. District Judge Frank P. Geraci to fraudulently obtaining a U.S. Passport by making false statements in the passport application. The maximum penalty for this charge is a term of imprisonment of 10 years and a fine of $250,000.Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Jennifer Gilbert applied for a passport in 2007 using the name and identification of another individual, Lena B.W. Years later, in May 2014, Lena B.W. applied for a passport for herself. Lena B.W.’s application triggered a review of the 2007 application that defendant had submitted, and resulted in defendant’s fraud being discovered.
Sentencing is scheduled for June 4, 2015, at 3:00 pm, before Judge Geraci.
This criminal complaint is the culmination of an investigation by Special Agents from the United States Department of State.
Princeton man pleads guilty to federal drug chargeRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that a Princeton man pled guilty to a drug charge before Senior United States District Judge David A. Faber in federal court in Bluefield. Lamar Baxter, 39, pled guilty to using a phone to arrange a drug deal. Baxter admitted that on November 11, 2014, he used a telephone in Princeton to speak with an informant to arrange a drug deal. A short time later Baxter sold seven oxycodone pills to the informant.
Baxter faces up to 20 years in prison and a $1,000,000 fine when he is sentenced on June 25, 2015.
The case was investigated by the Southern Regional Drug and Violent Crime Task Force and it is being prosecuted by Assistant United States Attorney John File under the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal drug trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Portland Man Sentenced to Almost 15 Years on Drug ChargesRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that George Noonan, 51, of Portland, Maine, was sentenced yesterday in U.S. District Court by Judge George Z. Singal to 176 months in prison and 8 years of supervised release for conspiracy to distribute cocaine and distribution of cocaine. Noonan pleaded guilty on November 19, 2014.
According to court records, between early 2010 and June 2013, Noonan and others acquired cocaine in Massachusetts and distributed over 1,200 grams of it in the Portland area. Noonan was subject to an enhanced sentence as a career offender because this conviction was his third felony drug trafficking conviction.
This case was investigated by the Southern Maine Gang Task Force, which is comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland and Biddeford Police Departments. The Maine Drug Enforcement Agency also participated in the investigation.
Pennsylvania Man Sentenced to Five Years of Probation for Failing to Pay Child SupportRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that James Christopher Blyler, 38, of Hanover Pennsylvania, was sentenced today in U.S. District Court by Judge D. Brock Hornby to five years of probation for failing to pay child support. He was also ordered to pay $71,252.87 in restitution representing his total arrearage to date. Blyler was arrested on October 6, 2014 and has been detained since then. He pled guilty on October 28, 2014.
According to court documents, on April 20, 2004, Blyler was ordered by a Maine district court to pay $165 per week toward the support of his child until the child reached the age of 18 in 2017. Shortly after the order issued, Blyler left Maine to live in other states including Texas, Pennsylvania, and Maryland. In May of 2010, Blyler pleaded guilty to failing to pay child support and was sentenced to three months in prison and one year of supervised release.
Blyler’s probation conditions require him to pay his restitution obligation and court-ordered child support. In explaining the sentence, Judge Hornby observed that Blyler had been detained for five months, explained that the statutory purposes of criminal punishment include getting defendants to pay restitution and getting parents to pay child support. Judge Hornby admonished Blyler to take the opportunity to make things right and warned him that if he violated probation he would go to prison.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Maine Department of Health and Human Services, Maine Child Support: Division of Support Enforcement & Recovery.