Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
4 March 2015
Bastrop Woman Pleads Guilty to Filing False Tax ReturnsRead the Press Release
MONROE, La. – United States Attorney Stephanie A. Finley announced today that a Bastrop woman pleaded guilty on Tuesday, to filing false tax returns.
Stella Marie Dunlap, 37, of Bastrop, La., entered a conditional guilty plea before U.S. Magistrate Judge Karen L. Hayes, to one count of aiding and subscribing a false tax return. The plea will become final when accepted by U.S. District Judge Robert G. James. According to evidence presented at the guilty plea, Dunlap filed fraudulent Forms 1040 during the 2010 and 2011 tax filing seasons while employed as a tax preparer at Faster Tax Services in Bastrop. The returns contained fraudulent W-2 income information from fictitious companies, and the information was used to file Earned Income Tax Credit withholdings. As a result of the fraud, the IRS issued $104,401 in refunds to which taxpayers where not entitled. Dunlap received kickbacks from some of customers as part of the scheme.
Dunlap faces up to three years in prison, one year of supervised release, a $250,000 fine, and restitution. A sentencing date of June 15, 2015 was set.
Internal Revenue Service - Criminal Investigations conducted the investigation. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
Alton Man Sentenced for Selling HeroinRead the Press Release
The United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Glenn P. Lowers, 25, of Alton, Illinois, was sentenced on Wednesday, March 4, 2015 to 144 months in federal prison for selling the heroin which killed Alton resident Joshua Shelton.
U.S. Attorney Wigginton commented, "The sentence imposed today is another example of the anti-heroin initiative which I started when I took office. Our anti-heroin initiative is active and ongoing, and it will continue. We are trying to send a message to drug dealers out there that they risk a severe prison sentence every time they sell heroin, especially to a young person in the Southern District of Illinois."
Upon release from prison, Lowers will also be required to serve a supervised release term of three years.
Shelton was 21 years old when he died of a heroin overdose in Alton on September 4, 2013.
Lowers admitted selling Shelton 1/10 gram of heroin for $10 shortly before Shelton’s grandfather discovered his grandson’s body.
The investigation which resulted in Lowers’ arrest and conviction was conducted by the Alton, Illinois Police Department.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Albuquerque Man Pleads Guilty to Federal Methamphetamine Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Manuel Chavez, 33, of Albuquerque, N.M., entered a guilty plea in federal court this morning to methamphetamine trafficking and firearms charges. Under the terms of his plea agreement, Chavez will be sentenced to 15 years in federal prison followed by a term of supervised release to be determined by the court.
Chavez was arrested on April 29, 2014, on a four-count indictment charging him with methamphetamine trafficking and firearms charges. Counts 1 and 2 of the indictment charged Chavez with being a felon in possession of firearms and ammunition in Sept. and Oct. 2013. At the time, Chavez was prohibited from possessing firearms or ammunition because he previously had been convicted of the following felony offenses: conspiracy to possess methamphetamine with intent to distribute, contributing to the delinquency of a minor, aggravated assault, possession of a controlled substance, attempt to bring contraband into a prison and aggravated fleeing from law enforcement. Counts 3 and 4 charged Chavez with possession of methamphetamine with intent to distribute and using and carrying a firearm in relation to a drug trafficking crime on Oct. 24, 2013. The indictment alleged that Chavez committed all four offenses in Bernalillo County, N.M.
During today’s change of plea hearing, Chavez pled guilty to Counts 3 and 4 of the indictment. In his plea agreement, Chavez admitted that on Oct. 24, 2013, deputies of the Bernalillo County Sheriff’s Office executed a search warrant at his residence and found Chavez in possession of more than four ounces of methamphetamine and three firearms and ammunition.
Chavez has been in federal custody since his arrest and 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, the Bernalillo County Sheriff’s Office and the Albuquerque Police Department. The case is being prosecuted by Assistant U.S. Attorneys Kimberly A. Brawley and Sarah Mease.
The 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.
Al-Qaeda Operative Convicted for Role in International Terrorism Plot Targeting the United States and EuropeRead the Press Release
Defendant and Co-Plotters Came Within Days of Bombing a U.K. Shopping Mall
U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Attorney General for National Security John P. Carlin, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Field Office and Commissioner William J. Bratton of the New York City Police Department (NYPD) announced that earlier today, following a two-week trial, Abid Naseer, 28, a Pakistani national who joined al-Qaeda and plotted to commit a terrorist attack in the United Kingdom, was found guilty by a jury in Brooklyn federal court of providing material support to al-Qaeda, conspiring to provide material support to al-Qaeda, and conspiring to use a destructive device in relation to a crime of violence. The evidence at trial established that the defendant and his accomplices came within days of executing a plot to conduct an attack on a busy shopping mall located in the city center of Manchester, United Kingdom, in April 2009. The planned attack, which also targeted the New York City subway system and a newspaper office in Copenhagen, Denmark, had been directed by and coordinated with senior al-Qaeda leaders in Pakistan. Naseer is the eighth defendant to face charges, and the fourth to be convicted, in Brooklyn federal court related to the al-Qaeda plot, which also involved Adis Medunjanin, Najibullah Zazi, and Zarein Ahmedzay, the three members of the cell that targeted New York City.
“This al-Qaeda plot was intended by the group’s leaders to send a message to the United States and its allies,” said U.S. Attorney Lynch. “Today’s verdict sends an even more powerful message in response: the United States will stop at nothing in order to hold those who plot to kill and maim in the name of religion accountable for their grievous crimes.” U.S. Attorney Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which led the investigation and comprises a large number of federal, state, and local agencies from the region. U.S. Attorney Lynch also extended her appreciation to the law enforcement authorities in the United Kingdom and Norway, including the Greater Manchester Police, the British Security Service, and the Norwegian Police Security Service, for their outstanding assistance with the case.
“Abid Naseer was part of an al Qaeda conspiracy that targeted Western countries, including the United States and the United Kingdom, for terrorist attack,” said Assistant Attorney General Carlin. “His conviction reflects our dedication to identifying and holding accountable those who seek to target the United States and its allies. I want to thank the many agents, analysts, and prosecutors who are responsible for this successful result.”
“Naseer knowingly and willingly conspired with others to carry out a destructive plot on behalf of al-Qaeda,” said FBI Assistant Director in Charge Rodriquez. “The wheels were set in motion, and he and his accomplices were prepared to execute their plan. Those who pledge allegiance to terrorists and terrorist organizations throughout the world will be brought to justice, and every effort will be made to protect Americans and our interests throughout the world. The FBI will continue to work with our local and international partners to mitigate the threat of global terrorism.”
“The Abid Naseer case demonstrates that terrorists who target the U.S. and its allies will be brought to justice, no matter where they are,” said NYPD Commissioner Bratton. “This investigation involved leads from the streets of Manchester, England, to New York City, to Usama Bin Laden’s hidden lair in Pakistan. I want to thank the U.S. Attorney for the Eastern District and the members of the N.Y. FBI-NYPD Joint Terrorism Task Force for the work that led to this successful prosecution.”
In approximately September 2008, al-Qaeda leaders in Pakistan recruited Medunjanin, Zazi, and Ahmedzay, three friends from New York City, to conduct a suicide bombing attack in New York City. Those al-Qaeda leaders, including Adnan El-Shukrijumah and Saleh al-Somali, communicated with Zazi about the plot through an al-Qaeda facilitator named “Ahmad,” who was located in Peshawar, Pakistan. In early September 2009, after Medunjanin, Zazi, and Ahmedzay had selected the New York City subway system as their target, Zazi emailed with “Ahmad” in Pakistan about the proper ingredients for the main charge explosive, which included flour and oil. Zazi pleaded guilty to his role in the plot on Feb. 22, 2010; Ahmedzay pleaded guilty on April 23, 2010; and Medunjanin was convicted after trial on May 1, 2012.
The investigation by authorities in the United States and United Kingdom revealed that “Ahmad” had also been communicating with the defendant earlier in 2009. The evidence at trial demonstrated that the defendant and his Pakistani accomplices had been dispatched by al-Qaeda to the U.K. in 2006 in order to begin preparations for an attack in that country. The defendant and his co-conspirators entered the U.K. on student visas but then immediately dropped out of the university in which they had enrolled. The defendant, like Zazi, returned briefly to Peshawar in November 2008, at the same time Zazi and his co-conspirators were receiving weapons and explosives training from al-Qaeda in that region. After returning to the U.K., the defendant sent messages back and forth to the same email account that “Ahmad” was also using to communicate with the American-based al-Qaeda cell on behalf of Saleh al-Somali, al-Qaeda’s then-head of external operations. In the messages, the defendant used coded language to refer to different types of explosives. At the culmination of the plot, in early April 2009, the defendant told “Ahmad” that he was planning a large “wedding” for numerous guests during the upcoming Easter weekend, and that “Ahmad” – whom he called “Sohaib” – should be ready. Notably, Zazi testified that Ahmad had instructed him to use the same code of “marriage” to refer to the planned attack on the New York City subway, and that Zazi emailed Ahmad that “the marriage is ready” just before he drove to New York in early September 2009 to conduct the attack.
On April 8, 2009, the defendant and several associates were arrested in the United Kingdom. In connection with these arrests, U.K. authorities conducted searches of the plotters’ homes as well as an internet café used by the defendant to send his messages to Ahmad, where they seized a large volume of electronic media. As demonstrated at trial, a forensic review of that electronic media revealed that the defendant had downloaded several jihadi nasheeds, or anthems, calling for “death in large numbers.” A document recovered from the raid on Usama bin Laden’s compound in May 2011 contained a letter from Saleh al-Somali to Bin Laden, written on April 16, 2009, that discussed the defendant and his accomplices’ arrests in the U.K.
On Jan. 30, 2012, three defendants were also convicted in a Norwegian court of plotting a similar terrorist attack in Denmark as part of the same overall multinational al-Qaeda conspiracy. During that trial, the United States made available to the Norwegian prosecutors three witnesses who also pleaded guilty to terrorism offenses in the Eastern District of New York: Zazi, Ahmedzay, and Bryant Neal Vinas. Zazi and Ahmedzay again testified in the trial against Naseer.
The defendant faces up to life imprisonment when he is sentenced at a later date by the Honorable Raymond J. Dearie.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad, Celia A. Cohen, and Michael P. Canty, with assistance provided by the Justice Department’s National Security Division and Office of International Affairs.
Al-Qaeda Operative Convicted for Role in International Terrorism Plot Targeting the United States and EuropeRead the Press Release
Earlier today, following a two-week trial, Abid Naseer, a Pakistani national who joined al-Qaeda and plotted to commit a terrorist attack in the United Kingdom, was found guilty by a jury in Brooklyn federal court of providing material support to al-Qaeda, conspiring to provide material support to al-Qaeda, and conspiring to use a destructive device in relation to a crime of violence. The evidence at trial established that the defendant and his accomplices came within days of executing a plot to conduct an attack on a busy shopping mall located in the city center of Manchester, United Kingdom in April 2009. The planned attack, which also targeted the New York City subway system and a newspaper office in Copenhagen, Denmark, had been directed by and coordinated with senior al-Qaeda leaders in Pakistan. Naseer is the eighth defendant to face charges, and the fourth to be convicted, in Brooklyn federal court related to the al-Qaeda plot, which also involved Adis Medunjanin, Najibullah Zazi, and Zarein Ahmedzay, the three members of the cell that targeted New York City.
The verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; John P. Carlin, Assistant Attorney General for National Security; Diego G. Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“This al-Qaeda plot was intended by the group’s leaders to send a message to the United States and its allies,” stated United States Attorney Lynch. “Today’s verdict sends an even more powerful message in response: the United States will stop at nothing in order to hold those who plot to kill and maim on behalf of terrorist groups accountable for their grievous crimes.” Ms. Lynch extended her grateful appreciation to the FBI’s Joint Terrorism Task Force, which led the investigation and comprises a large number of federal, state, and local agencies from the region. She also sent her appreciation to the Internal Revenue Service–Criminal Investigation, New York, the U.S. Marshal Service, Brooklyn, and the law enforcement authorities in the United Kingdom and Norway, including the Greater Manchester Police, the British Security Service, and the Norwegian Police Security Service, for their outstanding assistance with the case.
“Abid Naseer was part of an al Qaeda conspiracy that targeted Western countries, including the United States and the United Kingdom, for terrorist attack,” said Assistant Attorney General Carlin. “His conviction reflects our dedication to identifying and holding accountable those who seek to target the United States and its allies. I want to thank the many agents, analysts, and prosecutors who are responsible for this successful result.”
FBI Assistant Director-in-Charge Rodriguez stated, “Naseer knowingly and willingly conspired with others to carry out a destructive plot on behalf of al-Qaeda. The wheels were set in motion, and he and his accomplices were prepared to execute their plan. Those who pledge allegiance to terrorists and terrorist organizations throughout the world will be brought to justice, and every effort will be made to protect Americans and our interests throughout the world. The FBI will continue to work with our local and international partners to mitigate the threat of global terrorism.”
“The Abid Naseer case demonstrates that terrorists who target the U.S. and its allies will be brought to justice, no matter where they are. This investigation involved leads from the streets of Manchester, England, to New York City, to Usama Bin Laden’s hidden lair in Pakistan. I want to thank the U.S. Attorney for the Eastern District and the members of the N.Y. FBI-NYPD Joint Terrorism Task Force for the work that led to this successful prosecution,” said Police Commissioner Bratton.
In approximately September 2008, al-Qaeda leaders in Pakistan recruited Medunjanin, Zazi, and Ahmedzay, three friends from New York City, to conduct a suicide bombing attack in New York City. Those al-Qaeda leaders, including Adnan El-Shukrijumah and Saleh al-Somali, communicated with Zazi about the plot through an al-Qaeda facilitator named “Ahmad,” who was located in Peshawar, Pakistan. In early September 2009, after Medunjanin, Zazi, and Ahmedzay had selected the New York City subway system as their target, Zazi emailed with “Ahmad” in Pakistan about the proper ingredients for the main charge explosive, which included flour and oil. Zazi pleaded guilty to his role in the plot on February 22, 2010; Ahmedzay pleaded guilty on April 23, 2010; and Medunjanin was convicted after trial on May 1, 2012.
The investigation by authorities in the United States and United Kingdom revealed that “Ahmad” had also been communicating with the defendant earlier in 2009. The evidence at trial demonstrated that the defendant and his Pakistani accomplices had been dispatched by al-Qaeda to the U.K. in 2006 in order to begin preparations for an attack in that country. The defendant and his co-conspirators entered the U.K. on student visas but then immediately dropped out of the university in which they had enrolled. The defendant, like Zazi, returned briefly to Peshawar in November 2008, at the same time Zazi and his co-conspirators were receiving weapons and explosives training from al-Qaeda in that region. After returning to the U.K., the defendant sent messages back and forth to the same email account that “Ahmad” was also using to communicate with the American-based al-Qaeda cell on behalf of Saleh al-Somali, al-Qaeda’s then-head of external operations. In the messages, the defendant used coded language to refer to different types of explosives. At the culmination of the plot, in early April 2009, the defendant told “Ahmad” that he was planning a large “wedding” for numerous guests during the upcoming Easter weekend, and that “Ahmad” – whom he called “Sohaib” – should be ready. Notably, Zazi testified that Ahmad had instructed him to use the same code of “marriage” to refer to the planned attack on the New York City subway, and that Zazi emailed Ahmad that “the marriage is ready” just before he drove to New York in early September 2009 to conduct the attack.
On April 8, 2009, the defendant and several associates were arrested in the United Kingdom. In connection with these arrests, U.K. authorities conducted searches of the plotters’ homes as well as an internet café used by the defendant to send his messages to Ahmad, where they seized a large volume of electronic media. As demonstrated at trial, a forensic review of that electronic media revealed that the defendant had downloaded several jihadi nasheeds, or anthems, calling for “death in large numbers.” A document recovered from the raid on Usama bin Laden’s compound in May 2011 contained a letter from Saleh al-Somali to Bin Laden, written on April 16, 2009, that discussed the defendant and his accomplices’ arrests in the U.K.
On January 30, 2012, three defendants were also convicted in a Norwegian court of plotting a similar terrorist attack in Denmark as part of the same overall multinational al-Qaeda conspiracy. During that trial, the United States made available to the Norwegian prosecutors three witnesses who also pleaded guilty to terrorism offenses in the Eastern District of New York: Zazi, Ahmedzay, and Bryant Neal Vinas. Zazi and Ahmedzay again testified in the trial against Naseer.
The defendant faces up to life imprisonment when he is sentenced by the Honorable Raymond J. Dearie.
The government’s case is being prosecuted by Assistant United States Attorneys Zainab Ahmad, Celia A. Cohen, and Michael P. Canty, with assistance provided by the Justice Department’s National Security Division and Office of International Affairs.
The Defendant:
ABID NASEER
Age: 28
E.D.N.Y. Docket No. 10-CR-019 (RJD)
Aggravated Felon Sentenced to Prison for Illegal Re-EntryRead the Press Release
A woman who failed to surrender to serve a previous sentence for illegal re-entry was sentenced February 27, 2015, to 12 months in in federal prison.
Maria Parra-Rosales, age 27, from Mexico, received the prison term after an October 27, 2014, guilty plea to one count of failure to surrender.
At the guilty plea, Parra-Rosales admitted she fled to Mexico after being convicted on November 15, 2013, in the United States District Court for the Northern District of Iowa of illegal re-entry as an aggravated felon. Parra-Rosales was to self-surrender to the Waseca Women’s Institution in Minnesota on May 15, 2014. She failed to surrender, and a warrant was issued for her arrest. Eventually, she surrendered herself to the U.S. Border Patrol at the United States border on June 26, 2014.
Parra-Rosales was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Parra-Rosales was sentenced to 12 months’ imprisonment. She must also serve a 1-year term of supervised release after the prison term. A special assessment of $100 was imposed. There is no parole in the federal system.
Parra-Rosales is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by the U.S. Marshals’ Service and Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-4077.
Follow us on Twitter @USAO_NDIA.
Aggravated Felon Sentenced to Prison for Illegal Re-EntryRead the Press Release
A man who illegally re-entered the United States from Mexico was sentenced February 27, 2015, to 7 months in in federal prison.
Christian Vargas-Ortiz, age 22, from Mexico, received the prison term after a November 6, 2014, guilty plea to one count of illegal re-entry as an aggravated felon.
At the guilty plea, Vargas-Ortiz admitted he had re-entered the United States without permission after being removed from the country on May 30, 2014. On November 6, 2013, Vargas-Ortiz was convicted of identity theft and forgery in the Iowa District Court for Sioux County. Vargas-Ortiz came to the attention of Homeland Security Investigations (HSI) after he was arrested on August 22, 2014, in Sioux County, Iowa for driving while license barred.
Vargas-Ortiz was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Vargas-Ortiz was sentenced to 7 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Vargas-Ortiz is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kevin C. Fletcher and investigated by HSI and the Enforcement and Removal Office of the Immigration and Customs Enforcement Bureau.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-4077.
Follow us on Twitter @USAO_NDIA.
10 Men Charged with Trafficking Guns into Camden, New Jersey, and Related Firearms OffensesRead the Press Release
CAMDEN, N.J. - Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), assisted by investigators from local, county, state and federal partner agencies, arrested multiple individuals throughout South Jersey and Pennsylvania this morning for illegally selling and possessing 82 firearms in the Camden area over a 12-month period, U.S. Attorney Paul J. Fishman announced.
Altogether, 10 men were charged, with eight arrested this morning during predawn raids, and two others already in custody on unrelated charges. Following six separate but coordinated ATF investigations that each involved video and audio-recorded illegal firearms sales by the defendants to a confidential informant and/or an undercover officer, the defendants were charged with various firearms offenses, including dealing firearms without a license, conspiring with others to deal firearms without a license, and selling stolen firearms. The defendants are scheduled to make their initial court appearances this afternoon before U.S. Magistrate Judge Karen M. Williams and U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
The guns ranged from semiautomatic pistols to sawed-off shotguns, assault-style rifles and pistols with high-capacity magazines. Many of the guns were stolen, straw-purchased, or had obliterated serial numbers. A ballistics vest, alleged by one of the sellers to have been stolen from a military base, was also sold to a cooperating informant.
“The great work of ATF and our other federal, state, and local law enforcement partners, took 82 guns off the streets of Camden. As alleged in the complaints, the defendants were willing to sell these weapons without regard to how they would ultimately be used. This is one part of our multi-facetted strategy to keep the people of Camden safe,” U.S. Attorney Fishman said.
“The alleged charges and subsequent arrests announced today send a direct message not to engage in the unlawful trafficking of firearms. Unlicensed dealers of firearms are nothing more than greedy criminal merchants, who seek profits at the expense of public safety, all too often with deadly consequences,” said ATF Special Agent in Charge George Belsky. “ATF will continue to identify, target, and arrest gun thieves, gun traffickers, and straw buyers, who are responsible for starting the sequence of violence in our neighborhoods by peddling guns to criminals. ATF remains dedicated to our core mission of fighting violent crime with our State and local partners to keep our homes, streets, and neighborhoods safe from firearms related violence.”According to separate federal criminal complaints filed today in Camden federal court:
- Orlando Matos, 47, of Camden, Robby Velazquez, 24, of Pennsauken, New Jersey and Orlando Velazquez, 46, of Pennsauken were each charged with one count of dealing firearms without a license and one count of conspiring with others to deal firearms without a license. Matos is also charged with one count of being a felon in possession of a firearm. From March 2014 through February 2015, Matos and Velazquez allegedly sold 30 firearms, including two sawed-off shotguns and a high-capacity assault-style rifle. Several of the firearms were stolen or had obliterated serial numbers.
- David Potts, 43, of Camden, and Darnel Johns, 47, of Albrightsville, Pennsylvania,are each charged with one count of conspiring with others to deal firearms without a license. Potts is also charged with one count of being a felon in possession of a firearm. From September 2014 through December 2014, Potts and Johns allegedly sold 22 firearms, including a sawed-off shotgun, three high-capacity assault-style rifles (one with a 73-round drum magazine and one with five 30-round magazines) and a high-capacity assault-style pistol with a 30-round magazine. Several of the guns were stolen, had obliterated serial numbers or were straw-purchased.
- Donavin Jackson, 20, of Cherry Hill, New Jersey, and Dominique Lawrence, 27, of Camden, are each charged with one count of dealing firearms without a license. From June 2014 through July 2014, Jackson and Lawrence allegedly sold six firearms, including a high-capacity assault-style rifle and a high-capacity assault-style pistol. One of the guns had an obliterated serial number and was straw-purchased.
- Jayson Quinones, 21, of Camden,is charged with one count of dealing firearms without a license. From September 2014 through January 2015, Quinones allegedly sold eight firearms, including a .45 caliber pistol and a .357 Magnum revolver.
- Dante Witcher, 45, of Camden, is charged with one count of dealing firearms without a license, one count of being a felon in possession of a firearm and one count of selling a stolen firearm. From September 2014 through November 2014, Witcher allegedly sold 15 firearms, all of which were stolen from gun stores in North Carolina. All fifteen firearms were new, high-caliber (9mm, .40, .44) handguns.
- Elliot Nock, 31, of Camden,is charged with one count of being a felon in possession of a firearm. On Oct. 31, 2013, the defendant allegedly sold a high-capacity assault-style pistol with a 30-round magazine.
Both the charge of conspiring to deal firearms without a license and the related charges of dealing firearms without a license each carry a maximum potential penalty of five years in prison and a $250,000 fine. The charges of possessing a firearm while being a convicted felon and selling a stolen firearm each carry a maximum penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of George P. Belsky, Jr.; Special Agent in Charge of ATF’s Newark Field Division, and Essam Rabadi, Special Agent in Charge of ATF’s Philadelphia Field Division, with the investigation. He additionally credited special agents of the DEA, Maple Shade Resident Office, under the direction of Special Agent in Charge Carl J. Kotowski; the ATF Charlotte Field Division under the direction of Special Agent in Charge, Wayne L. Dixie, Jr.; investigators with the Camden County Prosecutor’s Office, under the direction of Prosecutor Eva Marie Colalillo; detectives of the Camden County Police Department – Metro, under the direction of Chief J. Scott Thomson; the Newark Police Department’s Ballistics Laboratory; and the Bergen County Sheriff’s Office Ballistics Laboratory, with the investigation. He additionally credited the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos, Jr.; investigators under the Camden High Intensity Drug Trafficking Area; the New Jersey State Police’s Metro South Unit, under the direction of Superintendent Col. Rick Fuentes; the New Jersey State Parole Board, under the direction of Chairman James T. Plousis; the Camden County Sheriff’s Office, under the direction of Sheriff Charles H. Billingham; and the Cherry Hill, Pennsauken and Maple Shade Police Departments.
The government is represented by Assistant U.S. Attorneys Howard Wiener (Potts and Johns), Steven J. D’Aguanno (Quinones), Patrick C. Askin (Jackson and Lawrence), Justin C. Danilewitz (Matos, Robby and Orlando Velazquez) and Sara Aliabadi (Witcher, Nock) of the U.S. Attorney’s Office Criminal Division in Camden.
This case was coordinated through the Camden County Crime Collaboration (“C-4”). Every federal, state and local law enforcement agency and prosecutor’s office responsible for combating drug trafficking, gang activity and violent crime in Camden has come together in one location to share intelligence, develop strategies and support the investigative and prosecutorial efforts of its partners. C-4 has merged the individual missions of the various law enforcement agencies into a single strategic attack on drug trafficking and drug-related violent crime. Such intense coordination greatly enhances the law enforcement community’s ability to correctly identify and successfully prosecute Camden’s most dangerous criminals.
The charges and allegations contained in the complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
15-075
Defense counsel: TBD
3 March 2015
York Springs Man Sentenced to Prison for Workers' Compensation FraudRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Robert M. Fowler, 61, of York Springs, Pennsylvania, was sentenced yesterday for workers' compensation fraud involving $24,934.68 of benefits he was not entitled to receive. U.S. District Court Judge William W. Caldwell sentenced Mr. Fowler to three months' imprisonment to be followed by two years supervised release and ordered him to pay $23,792.00 in restitution. Fowler was ordered to surrender to the Bureau of Prisons by March 25, 2015.
According to U.S. Attorney Peter Smith, Fowler sustained an on-the-job injury in 1999 while working at the Defense Industrial Plant Equipment Center in Mechanicsburg, Pennsylvania, and began receiving federal workers' compensation benefits from the Office of Workers' Compensation Programs (OWCP) shortly thereafter. Recipients of these benefits are required to submit forms to OWCP on a periodic basis to insure they are still eligible to receive the benefits.
Fowler previously admitted that he lied on several forms he submitted to OWCP because he falsely claimed he was not incarcerated during the prior fifteen months for a felony and was residing with his wife. In fact, Fowler was in the Adams County Jail between September 2012 and July 2013 and had not resided with his wife between October 2010 and March 2014. As a result of the false statements, OWCP paid Fowler $24,934.18 which he was not entitled to receive.
Fowler was charged in a criminal Information filed in the U.S. District Court in July 2014.
The case was investigated by the U.S. Department of Labor, Office of Inspector General, and was assigned to Bruce Brandler, Chief of the Criminal Division, for prosecution.
Worley Man Sentenced for Theft from the Benewah MarketRead the Press Release
COEUR D'ALENE - Adam Lee SiJohn, 26, of Worley, Idaho, was sentenced today to six months in prison for his part in the theft of more than $22,000 from the Benewah Market in Plummer, Idaho, U.S. Attorney Wendy J. Olson announced. U.S. District Court Judge Edward J. Lodge also ordered SiJohn to pay $22,665.04 in restitution. SiJohn was indicted by a federal grand jury in Coeur d'Alene on October 21, 2014, and pleaded guilty to theft from a tribal organization on December 10, 2014.
According to the plea agreement, SiJohn admitted that on the late evening and early morning of August 20 and 21, 2014, he and his two co-defendants devised a plan to rob the Benewah Market. SiJohn as given the keys and the combination to the store safe. SiJohn took three bank bags from the safe. The bags contained cash and checks totaling $22,655.04.
The case was investigated by the Coeur d’Alene Tribal Police and the Federal Bureau of Investigation.
Virginia Man Sentenced to 54 Months in Prison for Possession of Child Pornography and Traveling to Engage in Illicit Sexual Conduct with a MinorRead the Press Release
WASHINGTON – Ryan Chord, 35, of Virginia Beach, Va., was sentenced today to 54 months in prison on federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Chord pled guilty in November 2014 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Christopher R. Cooper. Upon completion of his prison term, Chord will be placed on 10 years of supervised release. He also will be required to register as a sex offender for at least 15 years.
According to the government's evidence, on Feb. 21, 2014, Chord contacted an undercover officer with the FBI's Child Exploitation Task Force, through a social network site. Over the next few days, Chord engaged in instant messaging with the undercover officer, whom he believed was the father of an under-aged girl. During this period, Chord arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During the course of their communications, Chord also sent the undercover officer approximately 17 images of child pornography. On March 7, 2014, Chord traveled from Virginia Beach to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who prosecuted the case.
15-035
Union County, New Jersey, Salesman Admits to Bribing a Doctor in Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
Thirty-seven Defendants – Including 24 Doctors – Have Pleaded Guilty to Roles in Massive Healthcare Bribery Scheme
NEWARK, N.J. – A Berkeley Heights, New Jersey, man today admitted bribing a doctor in exchange for test referrals as part of a long-running and elaborate scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced.
Michael J. Zarrelli, 48, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of conspiring to bribe a doctor and one count of money laundering.
Including Zarrelli, 37 people – 24 of them doctors – have pleaded guilty in connection with the bribery scheme – which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. The investigation has to date recovered more than $10.5 million through forfeiture.According to documents filed in this and related cases and statements made in court:
Zarrelli admitted he agreed with BLS president David Nicoll, 40, of Mountain Lakes, New Jersey, his brother, Scott Nicoll, 34, of Wayne, New Jersey, and others to pay cash bribes to a doctor in return for referring patient blood specimens to BLS. The referrals sent to BLS by the doctor that Zarrelli bribed generated more than $400,000 in lab business for BLS.
On April 9, 2013, federal agents arrested David and Scott Nicoll, as well as Craig Nordman, 36, of Whippany, New Jersey, a BLS employee and the CEO of Advantech Sales LLC – one of several entities used by BLS to make illegal payments. They were charged by federal complaint with the bribery conspiracy, along with the BLS company and Frank Santangelo, 45, of Boonton, New Jersey. In June 2013, David and Scott Nicoll, Nordman, and four other associates of BLS pleaded guilty to charges related to their involvement. Santangelo, a doctor, pleaded guilty in August 2013 to charges relating to his role in the scheme.
The bribery count to which Zarrelli pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The money laundering count carries a maximum potential penalty of 20 years in prison and a $500,000 fine. Sentencing is scheduled for June 30, 2015. As part of his guilty plea, Zarrelli must forfeit $247,264, representing the payment he received from BLS.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel; the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; IRS– Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the ongoing investigation leading to today’s guilty plea.
The Government is represented by Assistant U.S. Attorney Joseph N. Minish, Senior Litigation Counsel Andrew Leven, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $635 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
15-074Defense counsel: Michael Critchley Esq., Roseland, New Jersey
U.S. Trustee Program Reaches $50 Million Settlement with JPMorgan Chase to Protect Homeowners in BankruptcyRead the Press Release
Settlement Addresses Robo-Signing and Other Improper Practices in Bankruptcy Cases
The Department of Justice’s U.S. Trustee Program (USTP) has entered into a national settlement agreement with JPMorgan Chase Bank N.A. (Chase) requiring Chase to pay more than $50 million, including cash payments, mortgage loan credits and loan forgiveness, to over 25,000 homeowners who are or were in bankruptcy. Chase will also change internal operations and submit to oversight by an independent compliance reviewer. The proposed settlement has been filed in the U.S. Bankruptcy Court for the Eastern District of Michigan, where it is subject to court approval.
In the proposed settlement, Chase acknowledges that it filed in bankruptcy courts around the country more than 50,000 payment change notices that were improperly signed, under penalty of perjury, by persons who had not reviewed the accuracy of the notices. More than 25,000 notices were signed in the names of former employees or of employees who had nothing to do with reviewing the accuracy of the filings. The rest of the notices were signed by individuals employed by a third party vendor on matters unrelated to checking the accuracy of the filings.
Chase also acknowledges that it failed to file timely, accurate notices of mortgage payment changes and failed to provide timely, accurate escrow statements.
“It is shocking that the conduct admitted to by Chase in this settlement, including the filing of tens of thousands of documents in court that never had been reviewed by the people who attested to their accuracy, continued as long as it did,” said Acting Associate Attorney General Stuart F. Delery. “Such unlawful and abusive banking practices can deprive American homeowners of a fair chance in the bankruptcy system, and we will not tolerate them.”
“This settlement should signal once again to banks and mortgage servicers that they cannot continue to flout legal requirements, compromise the integrity of the bankruptcy system and abuse their customers in financial distress,” said Director Cliff White of the U.S. Trustee Program. “It should be acknowledged that Chase responded to the U.S. Trustee’s court actions by conducting an internal investigation and taking steps to mitigate harm to homeowners. But years after uncovering improper mortgage servicing practices and entering into court-ordered settlements to fix flawed systems, it is deeply disturbing that a major bank would still make improper court filings and fail to provide adequate and timely notices to homeowners about payments due. Other servicers should take note that the U.S. Trustee Program will continue to police their practices and will work to ensure that those who do not comply with bankruptcy law protections for homeowners will pay a price, just as Chase has done in this matter.”
Payments, Credits and Contributions of More Than $50 Million:
In the proposed settlement, Chase agrees to provide payments, credits and contributions totaling more than $50 million:
-
Chase will provide $22.4 million in credits and second lien forgiveness to about 400 homeowners who received inaccurate payment increase notices during their bankruptcy cases.
-
Chase will pay $10.8 million to more than 12,000 homeowners in bankruptcy through credits or refunds for payment increases or decreases that were not timely filed in bankruptcy court and noticed to the homeowners.
-
Chase will pay $4.8 million to more than 18,000 homeowners who did not receive accurate and timely escrow statements. This includes credits for taxes and insurance owed by the homeowners and paid by Chase during periods covered by escrow statements that were not timely filed and transmitted to homeowners.
-
Chase will pay $4.9 million, through payment of approximately $600 per loan, to more than 8,000 homeowners whose escrow payments Chase may have applied in a manner inconsistent with escrow statements it provided to the homeowners.
-
Chase will contribute $7.5 million to the American Bankruptcy Institute’s endowment for financial education and support for the Credit Abuse Resistance Education Program.
Changes to Internal Operations: In the proposed settlement Chase also agrees to make necessary changes to its technology, policies, procedures, internal controls and other oversight systems to ensure that the problems identified in the settlement do not recur.
Oversight by Independent Reviewer: Amy Walsh, a partner with the law firm Morvillo LLP, has been selected to serve as independent reviewer to verify that Chase complies with the settlement order. The independent reviewer will file public reports with the bankruptcy court.
No Effect on Additional Relief by Homeowners: This settlement does not affect the rights of any homeowners to seek any relief against Chase that they may deem appropriate.
Chase Contact Information: Homeowners with questions about the settlement may contact Chase at 866-451-2327.
The settlement is the culmination of actions taken by the U.S. Trustee Program in districts around the country concerning Chase’s improper practices in bankruptcy cases, including robo-signing. Director White commended the U.S. Trustee Program team in the field and headquarters who expertly identified, investigated, litigated and settled this matter, including Deputy Director and General Counsel Ramona Elliott, National Creditor Enforcement Coordinator Gail Geiger and Trial Attorneys Diarmuid Gorham and Kelley Callard.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The U.S. Trustee Program has 21 regions and 93 field office locations.
-
U.S. Trustee Program Reaches $50 Million Settlement with JPMorgan Chase to Protect Homeowners in BankruptcyRead the Press Release
Settlement Addresses Robo-Signing and Other Improper Practices in Bankruptcy Cases
WASHINGTON – The Department of Justice’s United States Trustee Program (USTP) has entered into a national settlement agreement with JPMorgan Chase Bank, N.A. (Chase) requiring Chase to pay more than $50 million including cash payments, mortgage loan credits and loan forgiveness to over 25,000 homeowners who are or were in bankruptcy. Chase will also change internal operations and submit to oversight by an independent compliance reviewer. The proposed settlement has been filed in the United States Bankruptcy Court for the Eastern District of Michigan, where it is subject to court approval.
In the proposed settlement, Chase acknowledges that it filed in bankruptcy courts around the country more than 50,000 payment change notices that were improperly signed, under penalty of perjury, by persons who had not reviewed the accuracy of the notices. More than 25,000 notices were signed in the names of former employees or of employees who had nothing to do with reviewing the accuracy of the filings. The rest of the notices were signed by individuals employed by a third party vendor on matters unrelated to checking the accuracy of the filings.
Chase also acknowledges that it failed to file timely, accurate notices of mortgage payment changes and failed to provide timely, accurate escrow statements.
“It is shocking that the conduct admitted to by Chase in this settlement, including the filing of tens of thousands of documents in court that never had been reviewed by the people who attested to their accuracy, continued as long as it did,” said Acting Associate Attorney General Stuart F. Delery. “Such unlawful and abusive banking practices can deprive American homeowners of a fair chance in the bankruptcy system, and we will not tolerate them.”
“This settlement should signal once again to banks and mortgage servicers that they cannot continue to flout legal requirements, compromise the integrity of the bankruptcy system and abuse their customers in financial distress,” stated U.S. Trustee Program Director Cliff White. “It should be acknowledged that Chase responded to the U.S. Trustee’s court actions by conducting an internal investigation and taking steps to mitigate harm to homeowners. But years after uncovering improper mortgage servicing practices and entering into court-ordered settlements to fix flawed systems, it is deeply disturbing that a major bank would still make improper court filings and fail to provide adequate and timely notices to homeowners about payments due. Other servicers should take note that the U.S. Trustee Program will continue to police their practices and will work to ensure that those who do not comply with bankruptcy law protections for homeowners will pay a price, just as Chase has done in this matter.”
Payments, Credits and Contributions of More Than $50 Million.
In the proposed settlement, Chase agrees to provide payments, credits and contributions totaling more than $50 million:
- Chase will provide $22.4 million in credits and second lien forgiveness to about 400 homeowners who received inaccurate payment increase notices during their bankruptcy cases.
- Chase will pay $10.8 million to more than 12,000 homeowners in bankruptcy through credits or refunds for payment increases or decreases that were not timely filed in bankruptcy court and noticed to the homeowners.
- Chase will pay $4.8 million to more than 18,000 homeowners who did not receive accurate and timely escrow statements. This includes credits for taxes and insurance owed by the homeowners and paid by Chase during periods covered by escrow statements that were not timely filed and transmitted to homeowners.
- Chase will pay $4.9 million, through payment of approximately $600 per loan, to more than 8,000 homeowners whose escrow payments Chase may have applied in a manner inconsistent with escrow statements it provided to the homeowners.
- Chase will contribute $7.5 million to the American Bankruptcy Institute’s endowment for financial education and support for the Credit Abuse Resistance Education Program.
Changes to Internal Operations. In the proposed settlement Chase also agrees to make necessary changes to its technology, policies, procedures, internal controls and other oversight systems to ensure that the problems identified in the settlement do not recur.
Oversight by Independent Reviewer. Amy Walsh, a partner with the law firm Morvillo LLP, has been selected to serve as independent reviewer to verify that Chase complies with the settlement order. The independent reviewer will file public reports with the bankruptcy court.
No Effect on Additional Relief by Homeowners. This settlement does not affect the rights of any homeowners to seek any relief against Chase that they may deem appropriate.
Chase Contact Information. Homeowners with questions about the settlement may contact Chase at 866-451-2327.
The settlement is the culmination of actions taken by the USTP in districts around the country concerning Chase’s improper practices in bankruptcy cases, including robo-signing. Director White commended the USTP team in the field and headquarters who expertly identified, investigated, litigated and settled this matter, including Deputy Director and General Counsel Ramona Elliott, National Creditor Enforcement Coordinator Gail Geiger and Trial Attorneys Diarmuid Gorham and Kelley Callard.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 93 field office locations.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Order Approving Settlement [PDF 3.96 MB]
U.S. Navy Veteran Sentenced to More Than Seven Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Richard Dale Brooks (55, Cocoa) to 7 years and 11 months in federal prison on five counts of receiving child pornography over the Internet, and one count of possessing child pornography. The Court also ordered him to forfeit a computer that he had used in the commission of the offenses.
A federal jury found Brooks guilty, after a three-day trial, on June 5, 2014.
At trial, the government presented evidence that law enforcement had identified Richard Dale Brooks while investigating individuals sharing child pornography via a peer-to-peer file-sharing program in May 2012. Law enforcement obtained a search warrant for Brooks’s Jacksonville residence and discovered several computers containing child pornography. Specifically, agents discovered that Brooks had received at least 49 still images and 78 video files of child pornography, including depictions of prepubescent minors and child pornography material portraying sadistic and masochistic conduct, and depictions of violence.
According to court documents, Brooks requested a sentence of 60 months’ imprisonment, the lowest available sentence under the law, in light of his 20-year military career and his lack of criminal history.
The case was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations and the Jacksonville Sheriff's Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
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.
Two Members of Sports Betting Ring Sentenced to Prison for RacketeeringRead the Press Release
PHILADELPHIA – Two members of the Mastronardo Bookmaking Organization, a multi-million dollar sports betting operation, were sentenced to prison today by U.S. District Court Judge Jan E. DuBois. John Vito Mastronardo, Jr., 59, of Boca Raton, Florida, was sentenced to nine months in prison, to be followed by three years of supervised release with the first 9 months on house arrest, and a $5,000 fine. He pleaded guilty, on February 6, 2014, to conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, conducting three conspiracies to launder money, and transmitting wagering information. Joseph F. Mastronardo, 33, of Huntingdon Valley, Pennsylvania, was sentenced to five months in prison, to be followed by three years of supervised release with the first 5 months on house arrest, and a $5,000 fine. He pleaded guilty, on January 31, 2014, to conspiring to participate in a racketeering enterprise (RICO), conducting an illegal gambling business, conspiring to launder money, and aggravated structuring. Joseph F. Mastronardo is the son of Joseph Vito Mastronardo, Jr., who was the leader of the organization.
At its peak, the Mastronardo Bookmaking Organization had more than 1,000 bettors and was generating millions of dollars a year. Between January 1, 2005 and January 1, 2011, the organization utilized internet websites (www.betroma.com and www.betrose.com) and telephone numbers that allowed bettors to place sports bets on football, baseball, basketball, golf, horse racing, and other sporting events. Residents of Costa Rica staffed the internet websites and answered the telephones. In 2006 and 2010, law enforcement seized over $2.1 million of cash that Joseph Vito Mastronardo, Jr., hid in and around his home, including in specially-built secret compartments and in PVC pipes that were buried in his backyard.
A total of 16 defendants were indicted in the case, 15 of whom were charged with conspiring to participate in a racketeering enterprise (RICO) and conducting an illegal gambling business. All 15 pleaded guilty. Charges against the 16th defendant, Joanna Mastronardo, will be dismissed. U.S. District Court Judge Jan E. DuBois has ordered the forfeiture of approximately $3.7 million in the case. Sentencing hearings are pending for 12 of the defendants.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, the Montgomery County Detective Bureau, and the Montgomery County District Attorney’s Office. It is being prosecuted by Assistant United States Attorney Jason P. Bologna and Department of Justice Trial Attorney Kelly Pearson.
Two Indicted for Making Terrorist HoaxRead the Press Release
Oklahoma City, Oklahoma – Today, a federal grand jury returned an indictment charging ISRAA JAFAR ALI, 19, from Oklahoma City, and SAJJAD HUSSEIN AL FEHAIDAH, 23, from Saudi Arabia, with conspiracy to make a terrorist hoax and for making a terrorist hoax, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to the indictment, it is alleged that on September 19, 2014, Ms. Ali made a 911 call to the Edmond Police Department using the cell phone of her boyfriend, Mr. Al Fenaidah. Ms. Ali allegedly reported that a Saudi Arabian international male student would commit a suicide bombing at an unspecified Christian church near the University of Central Oklahoma (UCO) campus within two to three weeks by strapping ion himself an explosive device (a bomb laden vest containing nails) to kill a number of people. It is alleged that Mr. Al Fenaidah provided Ms. Ali his cell phone to make the false report and accessed his Facebook account to research biographical information on the Saudi Arabian male to provide to Ali. The indictment alleges that the purpose of the conspiracy by Ali and Fehaidah was to retaliate against the Saudi Arabian male international student.
If convicted, each defendant faces up to five years in prison and a $250,000 fine on the conspiracy count and up to five years in prison and a $250,000 fine on the terrorist hoax count. Reference is made to the court record for further information. The public is reminded this is simply a charge and both defendants are presumed innocent unless and until they are convicted beyond a reasonable doubt.
The Federal Bureau of Investigation and United States Attorney’s Office would like to thank the Edmond Police Department and the following members of the FBI Joint Terrorism Task Force who assisted in the investigation: the Oklahoma City Police Department, the Oklahoma Highway Patrol, the United States Secret Service, and the Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney Ed Kumiega.
Two Former Civilian Military Employees and One Military Contractor Convicted in Bribery Scheme at Georgia Military BaseRead the Press Release
Two former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one military contractor were convicted by a federal jury today of bribery and fraud charges related to military trucking contracts, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Christopher Whitman, 48, co-owner of United Logistics, an Albany-based trucking company and freight transportation broker, was convicted of 43 counts of honest services wire fraud, five counts of bribery, five counts of obstructing justice and one count of theft of government property. Shawn McCarty, 36, of Albany, Georgia, a former employee at the MCLB-Albany, was convicted of 15 counts of honest services wire fraud, one count of bribery and one count of obstructing justice. Bradford Newell, 43, of Sylvester, Georgia, also a former employee at the MCLB-Albany, was convicted of 13 counts of honest services wire fraud, one count of bribery and one count of theft of government property.
According to evidence presented at trial, Whitman paid more than $800,000 in bribes to three former officials of the Defense Logistics Agency (DLA) at the MCLB-Albany, including the head of the DLA Traffic Office and McCarty, to obtain commercial trucking business from the base. The transportation contracts were loaded with unnecessary premium-priced requirements, including expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity. As a result of these contracts, Whitman’s company grossed more than $37 million over less than four years.
The evidence further demonstrated that Whitman paid approximately $200,000 in bribes to the former inventory control manager of the Distribution Management Center at MCLB-Albany, Newell and others, who used their official positions to help Whitman steal more than $1 million in surplus equipment from the base, including bulldozers, cranes and front-end loaders. In exchange for the bribes, Newell and the inventory control manager removed the surplus items from Marine Corps inventory and arranged to have them transported off the base by Whitman’s company. Whitman then arranged to improve and paint the stolen equipment, and sell it to private purchasers.
One former United Logistics employee, a business partner of Whitman’s, two former DLA officials and another MCLB official previously pleaded guilty for their roles in the fraud and corruption scheme.
The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General, and the Department of Labor Office of the Inspector General. The case is being prosecuted by Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The associated forfeiture litigation is being handled by Assistant Deputy Chief Darrin McCullough of the Asset Forfeiture and Money Laundering Section and the Middle District of Georgia.
Two Former Civilian Military Employees and One Military Contractor Convicted in Bribery Scheme at Georgia Military BaseRead the Press Release
WASHINGTON – Two former civilian employees at the Marine Corps Logistics Base (MCLB) in Albany, Georgia, and one military contractor were convicted by a federal jury today of bribery and fraud charges related to military trucking contracts, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Christopher Whitman, 48, co-owner of United Logistics, an Albany-based trucking company and freight transportation broker, was convicted of 43 counts of honest services wire fraud, five counts of bribery, five counts of obstructing justice and one count of theft of government property. Shawn McCarty, 36, of Albany, Georgia, a former employee at the MCLB-Albany, was convicted of 15 counts of honest services wire fraud, one count of bribery and one count of obstructing justice. Bradford Newell, 43, of Sylvester, Georgia, also a former employee at the MCLB-Albany, was convicted of 13 counts of honest services wire fraud, one count of bribery and one count of theft of government property.
According to evidence presented at trial, Whitman paid more than $800,000 in bribes to three former officials of the Defense Logistics Agency (DLA) at the MCLB-Albany, including the head of the DLA Traffic Office and McCarty, to obtain commercial trucking business from the base. The transportation contracts were loaded with unnecessary premium-priced requirements, including expedited service, expensive trailers and exclusive use, which requires that freight be shipped separately from other equipment, even if that results in a truck not being filled to capacity. As a result of these contracts, Whitman’s company grossed more than $37 million over less than four years.
The evidence further demonstrated that Whitman paid approximately $200,000 in bribes to the former inventory control manager of the Distribution Management Center at MCLB-Albany, Newell and others, who used their official positions to help Whitman steal more than $1 million in surplus equipment from the base, including bulldozers, cranes and front-end loaders. In exchange for the bribes, Newell and the inventory control manager removed the surplus items from Marine Corps inventory and arranged to have them transported off the base by Whitman’s company. Whitman then arranged to improve and paint the stolen equipment, and sell it to private purchasers.
One former United Logistics employee, a business partner of Whitman’s, two former DLA officials and another MCLB official previously pleaded guilty for their roles in the fraud and corruption scheme.
The case was investigated by the Naval Criminal Investigative Service, with assistance from the Dougherty County District Attorney’s Office Economic Crime Unit, Defense Criminal Investigative Service, DLA Office of the Inspector General, and the Department of Labor Office of the Inspector General. The case is being prosecuted by Deputy Chief J.P. Cooney and Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. The associated forfeiture litigation is being handled by Assistant Deputy Chief Darrin McCullough of the Asset Forfeiture and Money Laundering Section and the Middle District of Georgia.
Three Worcester Men Convicted in Crack Cocaine Conspiracy TrialRead the Press Release
BOSTON – Following a seven-day trial, three Worcester men were convicted yesterday of distributing crack cocaine in the City of Worcester and surrounding areas.
Sergio Hernandez, 33, James "Speedro" Dunston, 33, and Anthony Wooldridge, 30, were convicted of conspiracy with the intent to distribute over 280 grams of “crack” cocaine. Wooldridge was also convicted of possession with intent to distribute cocaine. A fourth co-defendant, Richard Cruz, aka Compi, 42, of Puerto Rico, pleaded guilty on the second day of trial to conspiring to sell over 500 grams of powder cocaine. U.S. District Court Judge Timothy Hillman scheduled sentencing for May 14, 2015 for Cruz, May 15, 2015 for Wooldridge, May 22, 2015 for Dunston, and May 26, 2015 for Hernandez. The Massachusetts defendants were arrested in September 2012, and Cruz was simultaneously arrested at his residence in Puerto Rico.
The conspiracy charges arose from a year-long investigation into a crack cocaine network run by Hernandez, Dunston and Wooldridge in Worcester. On numerous occasions, Hernandez, Dunston and Wooldridge bought 200-500 gram amounts of powder cocaine from a number of sources inside and outside of Massachusetts. They then cooked down the cocaine into crack and distributed it in and around Worcester. Evidence presented at trial included an undercover officer’s purchases of crack cocaine from the defendants, approximately 30,000 intercepted phone calls and text messages, and the August 2012 seizure of one half kilogram of powder cocaine that Cruz sent from Puerto Rico to Hernandez in Worcester through the U.S. mail.
In total, fourteen individuals were charged as a result of the joint investigation by the Drug Enforcement Administration, Worcester Police Department, and U.S. Postal Inspection Service. Three codefendants -- Shawna Gotsis, Janette Hernandez and Jeneva Hernandez -- previously pleaded guilty to similar federal offenses. The Worcester County District Attorney's Office charged seven other co-conspirators in Massachusetts state court.
The charging statute provides a mandatory minimum sentence of 10 years and no greater than life in prison, a minimum of five years and up to a lifetime of supervised release, and a fine of $8 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Gary J. Gimme, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Cory S. Flashner and Greg A. Friedholm of Ortiz’s Worcester Branch Office.
Three More Arrest in Las Vegas-To-Anchorage Cocaine and Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska –U.S. Attorney Karen Loeffler announced today that the following individuals have been arrested in connection with a drug and money laundering conspiracy investigation involving the smuggling of cocaine to Alaska through Las Vegas McCarron International Airport. The new defendants are:
- CLARENCE ANTHONY HATTON, a/k/a “C-Money”, age 46, of Henderson, NV
- MICHAEL VONTRELL LANGDON, a/k/a "Money mike", age 35, of Renton, Washington
- ANTONIO DEMETRIUS BECKWITH, a/k/a "TWIN”, age 38, of Anchorage, AK
The men join DAREN D. COLE, DEWANE E. BLUE, and BRYAN M. BLEDSOE who have been previously indicted. On February 17, 2015, a grand jury in Anchorage charged HATTON, LANGDON, and BECKWITH with one count of drug conspiracy and one count money laundering conspiracy. Also included in the indictment were criminal forfeiture allegations.
According to the indictment, between approximately March 2012 and June 6, 2014, each of the six men participated in a scheme to acquire and distribute cocaine. HATTON would provide his conspirators with drugs in Las Vegas, Nevada. BLEDSOE had employee credentials that allowed him to bypass security screening at the airport in Las Vegas and bring the drugs into the airport undetected. BLEDSOE would then provide the drugs to others in the conspiracy that had cleared security checkpoints and the drugs would be brought to Alaska, and other states, in carry-on luggage. The drugs were distributed in Alaska and COLE, BECKWITH, and others would use the U.S. Mail, or other parcel delivery services, to send money from Alaska to HATTON, LANGDON, and other conspirators, in Washington State and Nevada.
The indictment alleges a total of 27 acts in furtherance of the drug conspiracy, including a sequence of events that occurred on June 1, 2014 when BLEDSOE brought a bag containing 10 kilograms of cocaine that originated with HATTON into the airport. After bypassing security, BLEDSOE met BLUE in a bathroom and provided BLUE with the cocaine. BLUE then met COLE in another bathroom and provided COLE with the cocaine.
The forfeiture allegations in the indictment seek to forfeit property allegedly derived from or used in the drug or money laundering conspiracies, including over $620,000; one Cadillac Escalade; one BMW; and one Mercedes.
According to Assistant U.S. Attorney Frank V. Russo, if convicted, the defendants face a potential life sentence on the drug trafficking conspiracy, with a mandatory minimum of ten years in prison. The money laundering conspiracy charges carry a maximum penalty of 20 years in prison, as well as fines related to the amount of money laundered. Under the federal sentencing statutes the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
An indictment is only a charging document and is not evidence of guilt. Defendants are presumed innocent and are entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
The Drug Enforcement Administration, by both its Anchorage and Las Vegas District Offices, the Internal Revenue Service Criminal Investigative Division, the United States Postal Inspection Service, both in Anchorage and Las Vegas, the FBI Anchorage Safe Streets Task Force, the Anchorage Police Department, the Las Vegas Metropolitan Police Department, the Henderson Police Department, and the North Las Vegas Police Department conducted the investigation leading to the criminal charges in this case. The Clark County Department of Aviation has been assisting authorities with their investigation.
Three Florida Men and a Corporation Convicted for Running Illegal International Gambling EnterpriseRead the Press Release
A federal jury in Oklahoma City convicted three Florida men and a Florida corporation today for their participation in an illegal international gambling and money laundering enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sanford C. Coats of the Western District of Oklahoma.
“In the age of the internet, what used to be a crime conducted by bookies on street corners is now an international criminal enterprise,” said Assistant Attorney General Caldwell. “Operating on-line but off-shore, the individuals convicted in this case raked in more than a billion dollars in illegal gambling proceeds. But as these convictions demonstrate, no matter where or how organized criminals operate, the Criminal Division will bring them to justice.”
“This is a great result in this important case,” said U.S Attorney Coats. “I applaud the tremendous, collaborative efforts of our law enforcement partners and the prosecution team.”
Paul Francis Tucker, 50, of Mount Dora, Florida, Luis Robles, 50, of St. Pete Beach, Florida, and Zapt Electrical Sales Inc., a corporation registered in Florida and owned by Tucker, were found guilty of engaging in a racketeering conspiracy, conducting an illegal gambling business and conspiracy to commit money laundering. Christopher Lee Tanner, 58, of Sarasota, Florida, was found guilty of conducting an illegal gambling ring. A sentencing date will be set by the court in approximately 90 days, and the hearing will take place before U.S. District Judge Stephen P. Friot of the Western District of Oklahoma.
According to evidence presented at trial, from 2003 to 2013, Tanner, Tucker, Robles and Zapt Electrical Sales conspired with others to operate internet and telephone gambling services from Panama City, Panama through an enterprise known as Legendz Sports. The international gambling enterprise took more than $1 billon in illegal wagers, almost exclusively from gamblers in the United States on American sporting events.
The evidence demonstrated that Tanner and Tucker worked as bookies in Florida, and illegally solicited and accepted sports wagers and settled gambling debts. Tucker also used Zapt Electrical Sales and its bank account to launder gambling proceeds collected from losing bettors.
The evidence showed that Robles worked as a runner for the enterprise, delivering cash to Legendz Sports bookies to make payouts and picking up cash profits from the bookies. According to the evidence at trial, bookies and runners for Legendz Sports transported millions of dollars of gambling proceeds in cash and checks from the United States to Panama. The checks were made out to various shell companies created by Legendz Sports all over Central America to launder gambling proceeds.
The case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Susan Dickerson Cox and Travis D. Smith of the Western District of Oklahoma.
Three Florida Men and a Corporation Convicted for Running Illegal International Gambling EnterpriseRead the Press Release
WASHINGTON – A federal jury in Oklahoma City convicted three Florida men and a Florida corporation today for their participation in an illegal international gambling and money laundering enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Sanford C. Coats of the Western District of Oklahoma.
“In the age of the internet, what used to be a crime conducted by bookies on street corners is now an international criminal enterprise,” said Assistant Attorney General Caldwell. “Operating on-line but off-shore, the individuals convicted in this case raked in more than a billion dollars in illegal gambling proceeds. But as these convictions demonstrate, no matter where or how organized criminals operate, the Criminal Division will bring them to justice.”
“This is a great result in this important case,” said U.S Attorney Coats. “I applaud the tremendous, collaborative efforts of our law enforcement partners and the prosecution team.”
Paul Francis Tucker, 50, of Mount Dora, Florida, Luis Robles, 50, of St. Beach, Florida, and Zapt Electrical Sales Inc., a corporation registered in Florida and owned by Tucker, were found guilty of engaging in a racketeering conspiracy, conducting an illegal gambling business and conspiracy to commit money laundering. Christopher Lee Tanner, 58, of Sarasota, Florida, was found guilty of conducting an illegal gambling ring. A sentencing date will be set by the court in approximately 90 days, and the hearing will take place before U.S. District Judge Stephen P. Friot of the Western District of Oklahoma.
According to evidence presented at trial, from 2003 to 2013, Tanner, Tucker, Robles and Zapt Electrical Sales conspired with others to operate internet and telephone gambling services from Panama City, Panama through an enterprise known as Legendz Sports. The international gambling enterprise took more than $1 billon in illegal wagers, almost exclusively from gamblers in the United States on American sporting events.
The evidence demonstrated that Tanner and Tucker worked as bookies in Florida, and illegally solicited and accepted sports wagers and settled gambling debts. Tucker also used Zapt Electrical Sales and its bank account to launder gambling proceeds collected from losing bettors.
The evidence showed that Robles worked as a runner for the enterprise, delivering cash to Legendz Sports bookies to make payouts and picking up cash profits from the bookies. According to the evidence at trial, bookies and runners for Legendz Sports transported millions of dollars of gambling proceeds in cash and checks from the United States to Panama. The checks were made out to various shell companies created by Legendz Sports all over Central America to launder gambling proceeds.
The case was investigated by the FBI and Internal Revenue Service-Criminal Investigation, with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Trial Attorney John S. Han of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Susan Dickerson Cox and Travis D. Smith of the Western District of Oklahoma.
Statement from the Justice Department on the Criminal Charges Against David PetraeusRead the Press Release
Justice Department Spokesman Marc Raimondi released the following statement Tuesday:
“Three documents – a criminal Information, a plea agreement, and a statement of facts – were filed today in the United States District Court for the Western District of North Carolina’s Charlotte Division in the case of United States v. David Howell Petraeus. The criminal Information charges the defendant with one count of unauthorized removal and retention of classified material, in violation of 18 U.S.C. § 1924. The plea agreement and corresponding statement of facts, both signed by the defendant, indicate that he will plead guilty to the one-count criminal Information."
Petraeus Plea Agreement
Petraeus Factual Basis
Petraeus Bill of Information
St. Johns County Employee Pleads Guilty to ExtortionRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Will Randy Rogers (64, St. Augustine) pleaded guilty yesterday to extortion. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, in August 2013, a St. Johns County businessman notified the Federal Bureau of Investigation that Rogers, then a construction inspector employed by St. Johns County, had been extorting money from him in connection with Rogers’s inspections of his various businesses, which shipped products out of the State of Florida. According to the businessman, Rogers harassed him by threatening to report non-existent code violations that, if reported, would have had a negative financial impact on the businesses. Prior to reporting Rogers’s conduct, the businessman had already paid Rogers $1,500. Thereafter, he recorded several conversations with Rogers, and between July 2013 and April 2014, made payments to Rogers totaling $6,000. When meeting with the businessman, Rogers often drove his St. Johns County issued vehicle.
On April 1, 2014, after Rogers took $2,000 from the businessman in order to not report alleged code violations, FBI agents stopped Rogers in his county vehicle and recovered the cash.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Julie Hackenberry.
Santa Rosa Tax Return Preparer Sentenced to 18 Months for Tax Fraud and Failing to Report Foreign Bank Accounts Omitting More than $587,000 of IncomeRead the Press Release
SAN FRANCISCO – Efrain Arturo Jovel was sentenced today to 18 months in prison for filing false tax returns and failing to report his financial interest in foreign bank accounts, U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez, announced.
Jovel pleaded guilty on October 21, 2014, to willfully failing to report his financial interest in several foreign bank accounts, in violation of 31 U.S.C. §§ 5314 and 5322(a), and to knowingly signing his false 2009 and 2010 federal income tax returns. According to the plea agreement, Jovel owned and operated a tax return preparation business for over 30 years, first out of his home, then out of offices on Guerneville Road, both in Santa Rosa, Calif. On average, Jovel prepared approximately 1,800 tax returns per year. Jovel admitted that for the tax years 2009 and 2010, he filed personal U.S. Individual Income tax returns that were false in that he did not disclose his foreign bank accounts at Banco HSBC Salvadoreno, S.A. and Banco Reformador, S.A. In addition, Jovel did not disclose interest income of $35,104 earned in 2009 and 2010 on the funds held in these foreign bank accounts. Jovel additionally admitted that he willfully underreported gross receipts from his tax preparation service of $244,120 and $307,846, respectively. This resulted in a tax loss of $175,023. Jovel further agreed to pay a penalty of $287,896 prior to sentencing.
Jovel, 64, of Santa Rosa, was charged on September 9, 2014, with one count of willfully violating foreign bank account reporting requirements and two counts of subscribing to false tax returns.
The sentence was handed down by the Honorable Richard Seeborg, U.S. District Court Judge. In addition to the 18-month sentence, Jovel was also sentenced to a three-year period of supervised release, ordered to pay restitution of $175,023 and a $10,000 fine.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the IRS - Criminal Investigation.
San Jose Man Sentenced to 14 Years in Prison for Methamphetamine TraffickingRead the Press Release
SAN JOSE – Omar Gonzalez was sentenced today to 174 months in prison for conspiracy to possess with intent to distribute and to distribute methamphetamine, announced United States Attorney Melinda Haag and Drug Enforcement Administration Acting Special Agent in Charge Bruce Balzano.
Gonzalez previously pleaded guilty pursuant to a plea agreement on August 20, 2014 to one count of conspiracy to possess with intent to distribute and to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1). According to the plea agreement, Gonzalez admitted that, between May and November of 2012, he conspired with other individuals to distribute methamphetamine in Northern California. When law enforcement officers executed a search warrant at his residence in San Jose, California, on November 30, 2012, they found 2.9 kilograms of methamphetamine that was approximately 99.7% pure.
Gonzalez, 31, of San Jose, Calif., was indicted by a federal grand jury on February 28, 2013, for conspiring to distribute methamphetamine.
The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Court Judge, following a guilty plea on one count in violation of 21 U.S.C. § 841(a)(1). Judge Koh also sentenced Gonzalez to a 5 year period of supervised release. The defendant has been in federal custody since November 30, 2012.
Richard Cheng and Chinhayi Cadet are the Assistant U.S. Attorneys who are prosecuting the case. This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.
Rockford Man Sentenced to More Than 10 Years in Federal Prison for Possessing Heroin, Marijuana and A FirearmRead the Press Release
ROCKFORD — A Rockford man was sentenced today in federal court to a total of 124 months in federal prison for committing firearms and drug trafficking offenses. JARIMNE FREEMAN, 30, was sentenced by U.S. District Judge Frederick J. Kapala to serve 64 months’ imprisonment for possessing with intent to distribute heroin and marijuana. In addition, the court sentenced Freeman to serve a consecutive term of 60 months’ imprisonment for possessing a firearm in furtherance of his drug trafficking crime. After serving his sentence in federal prison, Freeman will be placed on 3 years of supervised release. Freeman was also ordered to pay a special assessment of $200.
Freeman pleaded guilty on October 21, 2014. According to the written plea agreement, on October 10, 2013, Freeman agreed to meet with an individual who was cooperating with the Winnebago County Sheriff’s Department (“WCSD”) at a location in Rockford and sell the cooperating individual 10 grams of heroin. The plea agreement noted that Freeman was arrested by WCSD deputies when Freeman arrived at the agreed upon location. The plea agreement further noted that at the time Freeman was arrested by WCSD deputies and Freeman’s vehicle was searched, Freeman possessed approximately 8.9 grams of heroin and approximately 57.2 grams of marijuana in plastic bags in the center console, approximately 267 grams of marijuana in two plastic bags in the back seat, and a loaded FEG 9mm pistol under the driver’s side floor mat of Freeman’s vehicle. Freeman also possessed approximately 9.6 grams of heroin in a plastic bag and $1,691 in his front right pants pocket. Freeman admitted that he intended to sell the heroin and marijuana he possessed on October 10, 2013 to other individuals. Freeman further admitted in the plea agreement that he possessed the FEG 9mm pistol on October 10, 2013 to protect his heroin and marijuana and his drug trafficking proceeds. The plea agreement further noted that in the eight months prior to October 10, 2013, Freeman sold approximately 50 grams of heroin per month to his customers for a total of approximately 400 grams of heroin.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Carl J. Vasilko, Special Agent-in-Charge of the Chicago Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Gary Caruana, Winnebago County Sheriff.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Rochester Man Sentenced for OnlineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced that Matthew D. King, 31, of Rochester, N.Y., who was convicted of online enticement of a minor, was sentenced yesterday to 121 months in federal prison to be followed by 15 years of supervised release by U.S. District Court Judge Frank P. Geraci. King was also ordered to register as a sex offender.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that in 2012, the defendant was employed as a Youth Care Professional at the Hillside Children’s Center (HCC), a provider of care for youth and families with a wide range of emotional, behavioral, or life-circumstance challenges. In this role, King had direct supervisory responsibility over at risk youth, including the victim who was a 15 year old child.
Between February and August 2012, the defendant came into contact with the child on a regular basis and would frequently discuss sexual topics with the victim. King eventually asked the child to engage in sexual activity, and in fact did engage in sexual activity with the child on several occasions at or around HCC. In August of 2012, the victim reported this activity to HCC staff after King was reassigned as his supervisor. HCC immediately notified the New York State Police who conducted an investigation.
The investigation revealed that the defendant and the child engaged in sexual conduct on multiple occasions. Investigators also learned that on July 23, 2012, King contacted the child over the internet using an online social networking site, to arrange a sexual meeting with the child later that day. The defendant used this online contact to entice the child to engage in sexual conduct, which then took place. State Police contacted Homeland Security Investigations for assistance.
Following the State Police investigation, the defendant was charged with and pled guilty to five counts of Criminal Sexual Act, 3rd Degree (Felony) and two counts of Endangering the Welfare of a Minor (misdemeanor) in State Court related to his contact children under his care.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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 better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea is the culmination of an investigation on the part of Investigators with the New York State Police, under the direction of Major Scott Crosier, and Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Repeat Bank Robber Sentenced to 99 MonthsRead the Press Release
COEUR D’ALENE - Ricky Allen Fisher, 35, of Coeur d’Alene, Idaho, was sentenced today to 99 months in federal prison for bank robberies he committed in Ontario, Oregon and Cottonwood, Idaho, announced U.S. Attorney Wendy J. Olson. U.S. District Court Judge Edward J. Lodge increased Fisher’s sentence from 87 to 99 months because Fisher committed the bank robberies within days of being released from prison. Judge Lodge also ordered Fisher to pay restitution to each of the three banks he robbed. Fisher pleaded guilty to the charges on December 8, 2014.
In his plea agreement, Fisher admitted to being released from federal prison on May 6, 2014. Fisher left the prison and took a bus to Idaho. He arrived on May 9, 2014, and was taken to Ontario, Oregon, where he robbed a Chase Bank of $1,600. Five days later he entered U.S. Bank in Ontario, Oregon, demanded cash and left with $1,334.00. On May 16, 2014, Fisher robbed the U.S. Bank in Cottonwood, Idaho and took $2,324.00. Fisher was driven to each bank by Jennifer Balfe, 19, who previously pled guilty and was sentenced to 27 months in prison.
This case was investigated by the Federal Bureau of Investigation and Lewiston City Police, Idaho State Police, Ontario City Police, Cottonwood City Police and Idaho County Sheriff’s Office.
Reading Man Sentenced to 28 Months in Prison for Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 58-year-old Reading man was sentenced to 28 months in prison Friday by U.S. District Court Judge Robert D. Mariani for conspiring with others to distribute heroin in the Monroe-Berks County area in 2013.
According to United States Attorney Peter Smith, the defendant, Richard Carvajal, previously pleaded guilty to participating in the drug conspiracy.
Carvajal was indicted by a federal grand jury in March 2014, as a result of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, and Berks County Detectives.
Judge Mariani also ordered Carvajal to serve three years on supervised release following his prison sentence, and to pay a special assessment of $100.
Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
Principals and Associates of Local Environmental Consulting Firm Plead Guilty to Multi-Million Dollar Fraud SchemeRead the Press Release
Springfield, Ill. – U.S. Attorney Jim Lewis, Central District of Illinois, announced today that five defendants have recently entered pleas of guilty related to a scheme that defrauded the Illinois Environmental Protection Agency of millions of dollars. The charges against the men relate to a scheme that, over a period of 12 years, from 2001 to 2013, swindled money from a fund administered by Illinois EPA to clean up sites contaminated by leaking underground storage tanks.
The current owner of Environmental Management of Illinois, Inc. (EMI), Michael R. Keebler, 41, of Worthington Chase, Sherman, Ill., entered pleas of guilty late Friday, Feb. 27, to two counts of conspiracy to commit mail fraud. EMI founders, Eric M. Andrews, 51, of Overton Road, Springfield, Ill., and his brother, Joel T. Andrews, 46, of Emerson Road, New Berlin, Ill., each pled guilty yesterday to one count of conspiracy to commit mail fraud. In a separate but related case, Michael Keebler’s brothers, Duane T. Keebler, 42, of Rain Hollow Drive, Maryland Heights, Mo., and Joseph R. Keebler, 44, of South Illinois Ave, Carbondale, Ill., each entered pleas of guilty on Feb. 20, to one count of conspiracy to commit mail fraud.
“These defendants have now admitted that they cheated the taxpayers of this State out of millions of dollars,” said U.S. Attorney Lewis. “We commend the USEPA and the FBI for their determined investigative efforts, in order to bring these defendants to justice.”
Joel Andrews founded EMI in 1997 and served as president, and Eric Andrews joined in 1999 as vice-president. In April of 2001, professional engineer Michael Keebler joined the firm. In 2006, the firm was sold to Michael Keebler, who has remained as the firm’s principal owner and president. EMI is located at 1154 N. Bradfordton Road, Springfield. The environmental consulting firm worked with property owners to cleanup property contaminated by petroleum leaks, spills, or overfills from underground storage tanks. The firm then sought reimbursement of its costs to remediate the land from a fund administered by a designated section within Illinois EPA.
The U.S. EPA has a cooperative agreement with the State of Illinois to administer the UST (underground storage tanks) program. IEPA and the Illinois Office of the State Fire Marshal share administration of the UST fund which assists tank owners and operators with the cleanup costs of petroleum leaks from USTs. The State Fire Marshal administers the preventative and permitting aspects of the program. If there is a spill or leak, IEPA is responsible for oversight of the cleanup investigation and the corrective action, in order to clear the property for use again. State taxes and fees paid on the purchase of gasoline fund the Leaking UST (LUST) program.
According to plea agreements filed by the parties, Michael Keebler, and Eric and Joel Andrews each admitted that they conspired to defraud the LUST fund by artificially inflating expenses they incurred in remediating property. For example, as principals of EMI, they admitted they reached agreements with their vendors to submit two invoices for certain services: one invoice listed the real costs of the service provided and the payment to be made by EMI, and a second invoice which inflated the amount of work performed and supplies used, the amount charged for the work, or both. The inflated invoice would then be provided to Illinois EPA for reimbursement. Keebler and the Andrews would also pay certain vendors a reduced rate, but misrepresent to the Illinois IEPA that they had paid full price. At other times they would simply create or modify an existing invoice to reflect a higher charge than was actually paid and would submit that to IEPA for reimbursement.
In 2003, Keebler, Joel and Eric Andrews created a second company, known as Environmental Control Systems (ECS), which they represented as a separate entity performing services as a subcontractor for EMI on cleanup sites. In fact, ECS performed no service, but the principals would direct the actual subcontractors to invoice ECS, and ECS would pay the subcontractors for the work. An ECS invoice with a substantial mark-up was then presented to Illinois EPA as EMI’s cost for the project.
For example, in June 2006, EMI had a contract to clean a service station site in Dupo, Ill. Several subcontractors were hired to dig and haul away a certain amount of soil, and to backfill the site with clean soil. These subcontractors were paid approximately $250,000 for their services. Nevertheless, EMI falsely represented to Illinois EPA that ECS had performed these services at a cost of $694,415.00, which was the amount of reimbursement paid by the State. In total, Keebler and Joel and Eric Andrews split more than $13.6 million in profits from the company known as ECS.
In a separate but related case, Michael R. Keebler pled guilty to the second count of conspiracy to commit mail fraud for a similar scheme worked with his brothers, Duane and Joseph Keebler. Both Duane and Joseph Keebler pleaded guilty to starting their own environmental consulting firm, TKO Environmental Solutions, Inc., and inflating invoices through a different company they owned, known as Total Contracting Services, LLC, both registered businesses in Carbondale, Ill. In addition, Duane and Joseph Keebler purchased properties which had either been contaminated or were being contaminated by leaking underground storage tanks. As property owners, the brothers would then purport to contract with one of their own companies or with EMI to coordinate the cleanup. In doing so, Duane and Joseph Keebler would directly, and through Michael Keebler, disguise and inflate invoices from subcontractors and submit the fraudulent and inflated invoices to Illinois EPA for reimbursement from the LUST fund.
Another defendant, Jeremy L. VanScyoc, 38, of the 400 block of Elle Court, Springfield, waived indictment on Mar. 10, 2014, and pled guilty to one count of conspiracy to commit mail fraud. VanScyoc admitted that after he joined EMI he agreed to engage in the fraud scheme by inflating subcontractor invoices.
Each count of conspiracy to commit mail fraud carries a maximum possible penalty of five years in prison; fines of up to $250,000 or twice the amount of loss; as well as restitution to the Illinois EPA and forfeiture of any profits from fraudulent transactions. According to plea agreements filed with the court, Joel and Eric Andrews and Michael Keebler have agreed to forfeit various pieces of property and bank accounts. The court, however, will make the final determination of the total amount of loss to be repaid following a hearing which is set to begin on August 10, 2015. Sentencing dates will be set for Michael Keebler, Joel Andrews and Eric Andrews following that hearing.
Both Duane and Joseph Keebler have agreed to a loss amount in their cases, and will pay restitution in the total amount of $179,438. They are scheduled to be sentenced before U.S. District Judge Sue E. Myerscough on June 22, 2015. Jeremy VanScyoc is scheduled to be sentenced on April 13, 2015.
The case is being prosecuted by Assistant U.S. Attorneys Patrick D. Hansen and John E. Childress. The charges are the result of a two-year investigation by the Federal Bureau of Investigation and the U.S. Environmental Protection Agency, Criminal Investigation Division. The investigation was initiated by a former Illinois State Police Inspector on contract with the Illinois Environmental Protection Agency.
Photographer Sentenced to Prison for Sexual Exploitation of ChildrenRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 54-year-old McKinney, Texas photographer has been sentenced to federal prison for sexual exploitation of children in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Todd Fleming pleaded guilty on October 2, 2014, to sexual exploitation of children and was sentenced to 240 months in federal prison today by U.S. District Judge Michael H. Schneider. Fleming will be required to register as a sex offender and serve a life term of supervised release upon his release from federal prison.
Fleming was indicted by a federal grand jury on April 17, 2013, and charged with twenty-four counts of sexual exploitation of children and one count of possession of materials involving the sexual exploitation of minors.
According to information presented in court, between 1999 and 2007, Fleming, knowingly employed, used, persuaded, induced, enticed, and coerced eight minor females to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct.
“Sexually exploiting children is a crime that has traumatic effects on the most vulnerable members of our society," said Katherine Greer, acting Special Agent in Charge of Homeland Security Investigations (HSI) in Dallas. “HSI will continue to work aggressively with our law enforcement partners to identify and apprehend individuals who sexually exploit our children and deprive them of their innocence.
“Today, Todd Fleming received a sentence that was both fair and appropriately severe,” said U.S. Attorney Bales. “I sincerely hope that the punishment, and the shame, experienced by this defendant will serve as a warning to others attempting to victimize our children. We will continue to have zero tolerance for child pornographers in the Eastern District of Texas.”
The investigation leading to the charges was conducted by agents from the U.S. Department of Homeland Security - Homeland Security Investigations (DHS-HSI) and Texas Department of Public Safety - Criminal Investigations Division (DPS-CID). Assistant U.S. Attorney Nathaniel C. Kummerfeld is prosecuting this case.Philadelphia Businessman Pleads Guilty in Corruption CaseRead the Press Release
PHILADELPHIA – Sam Kuttab, 55, of Wyncote, Pennsylvania, pleaded guilty today to participating in a scheme to have a Philadelphia Municipal Court Judge use his judicial position to influence the outcome of a small claims case in the Philadelphia Municipal Court, announced United States Attorney Zane David Memeger. Kuttab, a Philadelphia area businessman, pleaded guilty to an information charging him with one count of mail fraud.
According to documents filed in the case, on September 30, 2011, Kuttab notified former Philadelphia Municipal Court Judge Joseph Waters that he had a small claims case pending in the Municipal Court. Kuttab’s company, Donegal Investment Properties, was sued by another company, identified as Company B, for $2733 in unpaid fees for security services. According to the documents, Waters then used his judicial position to achieve an outcome favorable to Kuttab. Specifically, Waters called two other Municipal Court judges assigned to the case on different dates, explained his relationship with Kuttab, and asked them to rule in Kuttab’s favor. In September 2011, the Municipal Court Judge identified in the information as Judge #1 granted Kuttab’s company a continuance in the case over Company B’s objection after receiving Waters’ call. In November 2011, the Municipal Court Judge identified in the information as Judge #2 adjudicated the case in Kuttab’s favor after Waters called and said that Kuttab was “a friend of mine.” After losing the case, the plaintiff threatened to appeal the verdict, and Waters mediated a settlement in which Kuttab agreed to pay $600 to settle the case. After attorney fees, Company B received $400 rather than the $2733 for which he sued.
Kuttab admitted today that he and Donegal gained a secret advantage through a series of secret ex parte communications between Waters and the other Municipal Court judges, some of which were recorded in FBI wiretaps, and that he participated in the scheme with Waters to cause favorable rulings for Donegal.
In September 2014, Waters plead guilty for his role in fixing this case as well as fixing a criminal case conceived as part of an FBI sting operation. He was sentenced to 24 months in prison.
U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for a date in July 2015 to be determined. Kuttab faces a maximum statutory sentence of 20 years in prison, a fine of up to $250,000 and up to three years of supervised release.
The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pastor, Alleged Sexual Predator on Marshals' 15 Most Wanted List CapturedRead the Press Release
After only three months on the U.S. Marshals 15 Most Wanted fugitive list, self-proclaimed pastor and accused sexual predator Victor Arden Barnard was arrested Friday, February 27, in Pipa, Brazil. Barnard, 53, is wanted by the Pine County Sheriff’s Office in Pine City, Minnesota, for 59 felony counts of criminal sexual assault stemming from allegations that he sexually abused young girls while acting as their pastor. The U.S. Marshals joined the manhunt for Barnard in April 2014.
The manhunt for Barnard gained momentum when U.S. Marshals developed significant information leading them to believe he was either in Brazil or receiving assistance from his followers there. After a lengthy and thorough investigation, Barnard was located and arrested by Brazilian law enforcement authorities.
The efforts of the Pine County Sheriff’s Office, U.S. Department of Justice, Office of International Affairs, the U.S. Department of State’s Diplomatic Security Service, Interpol Washington, and U.S. Marshals Service all contributed to the successful arrest of Barnard.
Barnard is being held in Brazil pending extradition back to the U.S.
Panama City Man Convicted of Possessing Firearm as a Convicted FelonRead the Press Release
PANAMA CITY, FLORIDA – Late yesterday, a federal grand jury in Panama City, Florida, convicted Sammie Lee Underwood III, 22, of Panama City, of being a felon in possession of a loaded .380 caliber pistol. The verdict was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in May 2014, Panama City police officers were on patrol in the Glenwood neighborhood when Underwood, driving a white Chevrolet Tahoe, ran a stop sign. He then led the officers on a chase through the neighborhood. As officers finally approached Underwood’s still-moving vehicle, he jumped out and fled on foot. The driverless vehicle then collided with a residence on East 13th Court. Under the Tahoe’s driver seat, officers found the loaded firearm and baggies of crack cocaine, bath salts, and marijuana. Testimony from Florida Department of Law Enforcement Crime Laboratory analysts showed that DNA recovered from the firearm matched Underwood.
Underwood faces a maximum of 10 years’ imprisonment. Sentencing has been set for June 3, 2015, at 9:30 a.m. before the Honorable Richard Smoak at the United States Courthouse, 30 West Government Street, Panama City. The case was investigated by the Panama City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Gayle Littleton and Katy Risinger.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Panama City Man Convicted of Possessing Firearm as a Convicted FelonRead the Press Release
PANAMA CITY, FLORIDA – Late yesterday, a federal jury in Panama City, Florida, convicted Sammie Lee Underwood III, 22, of Panama City, of being a felon in possession of a loaded .380 caliber pistol. The verdict was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
At trial, the government presented evidence that, in May 2014, Panama City police officers were on patrol in the Glenwood neighborhood when Underwood, driving a white Chevrolet Tahoe, ran a stop sign. He then led the officers on a chase through the neighborhood. As officers finally approached Underwood’s still-moving vehicle, he jumped out and fled on foot. The driverless vehicle then collided with a residence on East 13th Court. Under the Tahoe’s driver seat, officers found the loaded firearm and baggies of crack cocaine, bath salts, and marijuana. Testimony from Florida Department of Law Enforcement Crime Laboratory analysts showed that DNA recovered from the firearm matched Underwood.
Underwood faces a maximum of 10 years’ imprisonment. Sentencing has been set for June 3, 2015, at 9:30 a.m. before the Honorable Richard Smoak at the United States Courthouse, 30 West Government Street, Panama City. The case was investigated by the Panama City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Gayle Littleton and Katy Risinger.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Owner and Operator of Yonkers Construction Company Pleads Guilty in Manhattan Federal Court to $800,000 Income and Payroll Tax FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CID”), announced today that TARIQ TAHIR, the owner and operator of DNS Construction Corporation, pled guilty today in Manhattan federal court to two counts of tax fraud for failing to pay over $800,000 in income taxes and payroll taxes from 2006 to 2008. TAHIR pled guilty before U.S. District Judge Andrew L. Carter, Jr.
Manhattan U.S. Attorney Preet Bharara said: “As a business owner, Tariq Tahir had a responsibility to pay his fair share in taxes. With his guilty plea today, he has acknowledged that he neglected that responsibility and must face the consequences.”
IRS-CI Special Agent in Charge Shantelle P. Kitchen said: “Conducting business in cash for the express purpose of evading taxes does not guarantee that you will avoid detection. Business owners who willfully underreport their business receipts and fail to pay over the correct amount of payroll taxes ultimately place additional burdens on law abiding taxpayers. IRS-Criminal Investigation is committed to ensuring that every taxpayer pays his or her fair share.”
According to the criminal information, other documents filed in Manhattan federal court, and statements made at related court proceedings:
TAHIR owned and operated a Yonkers-based construction company named DNS Construction Corporation (“DNS”). From 2006 through 2008, TAHIR engaged in two tax fraud schemes in order to avoid paying over $800,000 in income taxes and payroll taxes that were due and owing by DNS. To execute the first scheme, TAHIR cashed checks at multiple check-cashing businesses in Manhattan and Brooklyn, rather than depositing those checks into the bank accounts of DNS, so that he could conceal DNS’s true revenues from state and federal tax authorities. To carry out the second scheme, TAHIR paid DNS’s employees primarily in cash so that he would be able to omit these salary payments from DNS’s federal tax returns without detection by tax authorities. By failing to report these payments, TAHIR underpaid the federal payroll taxes due and owing by DNS during this period.
TAHIR, 66, of Yonkers, faces a maximum sentence of three years in prison for each of the tax fraud counts, for a total maximum sentence of six years in prison. As part of his plea agreement, TAHIR is also required to pay more than $771,000 in restitution to the IRS and more than $112,000 in restitution to New York State. He is scheduled to be sentenced by Judge Carter on Friday, June 5, 2015, at 10:00 a.m.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation Division. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Jonathan Cohen is in charge of the prosecution.
U.S. v. Tariq Tahir Information
Orange County Man Sentenced to Twelve Years in Prison for Attempting to Entice Minors to Engage in Sexual ActivityRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced Jonathan S. Bergeron (30, Orlando) to 12 years in prison for attempting to persuade, induce, and entice two minors he believed to be 12 and 8 years of age to engage in illicit sexual conduct. He pleaded guilty on October 13, 2014.
According to the plea agreement, on July 9, 2014, Bergeron contacted an undercover FBI agent online who was posing as the father of two minors. Over the course of several days, Bergeron solicited sex with the children and said that he was using a website centered on incest to “navigate his way to more locals with young daughters.” Bergeron indicated that he wanted to network with like-minded individuals, and make having sex with children a recurrent event in his life.
On July 10, 2014, Bergeron traveled from Orlando to Lake Mary, where he intended to meet with the minors for the purpose of engaging in illicit sexual conduct. He was subsequently arrested.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United State 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 the 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.
Ohio man sentenced to ten years for heroin traffickingRead the Press Release
WHEELING, WEST VIRGINIA – Shawn Lemont McClain, 35, of Cleveland, Ohio, was sentenced today to 120 months in prison for heroin trafficking, United States Attorney William J. Ihlenfeld, II announced.
In imposing the ten year prison sentence, a significant upward variance from the applicable advisory sentencing guideline range, the court noted that McClain, an Ohio resident, crossed state lines and targeted the Ohio Valley to operate a drug trafficking operation that amounted to a business enterprise. The court emphasized the necessity of the prison term by noting that McClain continued to sell heroin while on pretrial release.
The Mountaineer Highway Interdiction Team discovered McClain in possession of heroin in Ohio County, West Virginia. He pled guilty in September 2014 to one count of “Possession with Intent to Distribute Heroin.”
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government.
Chief U.S. District Judge John Preston Bailey presided.
Ohio man charged with failure to update sex offender registrationRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Richard Doman, 46, of Lorain, Ohio, with failing to properly register as a convicted sex offender, United States Attorney William J. Ihlenfeld, II, announced.
Doman was convicted in 2003 of "Statutory Sexual Assault" and "Indecent Assault" in the Court of Common Pleas of York County, Pennsylvania. As a result of that conviction, he is required to register as a sex offender. Doman is alleged to have moved from Ohio to West Virginia in 2014 without updating his sex offender registration.
Doman is charged with one count of "Failure to Update Sex Offender Registration." He faces up to 10 years in prison and a fine of up to $250,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn Morgan is prosecuting the case on behalf of the government. The United States Marshals Service is leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Ninth Defendant Sentenced in Elk Grove Mortgage Fraud CaseRead the Press Release
SACRAMENTO, Calif. — Dana Faulkner, 48, resident of Oakland, CA, was sentenced today by United States District Judge John A. Mendez to one year in prison for conspiring to commit mail fraud and make false statements in loan applications, United States Attorney Benjamin B. Wagner announced. In addition, Faulkner was ordered to pay over $3 million in restitution to defrauded financial institutions.
Faulkner is the ninth defendant to be sentenced as the result of a large scale mortgage fraud scheme operating out of the Elk Grove headquarters of Liberty Real Estate & Investment Company and Liberty Mortgage Company. Hoda Samuel, the owner and principal operator of both companies, was convicted after a jury trial in January of 2013, and is currently serving a ten year prison sentence.
According to Faulkner’s plea agreement, and to the evidence presented at Samuel’s trial, in 2006 and 2007 the defendants participated in a scheme to defraud whereby misrepresentations were made to various financial institutions to convince them to finance the purchase of residential properties. Loan applications prepared by Liberty Mortgage Company misrepresented borrowers’ abilities to pay back loans, by overstating and/or falsifying employment, income and assets. In addition, the defendants drafted purchase contracts making offers significantly above what the sellers were asking for their properties. The excess amounts were paid back to the purchasers at escrow, disguised as payments for fictional repairs and remodeling to the properties. In many cases, these kickbacks were falsely described as payments to render the properties compliant with the Americans with Disabilities Act. Although the indictment identified 30 such fraudulent residential real estate transactions, the evidence at trial was that the fraud at Liberty was pervasive.
Although she was unlicensed, defendant Faulkner acted as both a real estate agent and loan officer as a Liberty employee. She recruited people to serves as buyers, sometimes of more than one property. She convinced the buyers that they could qualify for home loans, and added that they would receive cash payments at the close of transactions to help cover mortgage payments and pay off other bills. She filled out fraudulent loan applications, and she helped to arrange for the disguised kickback payments to be made to her clients.Almost all of the 30 properties listed in the indictment went into foreclosure, resulting in a loss of over $5 million to financial institutions.
"Mortgage fraud is an incredibly destructive crime that leaves many victims in its wake," said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. "The defendant played a significant role in a scheme that hurt so many people and affected so many of our communities. IRS-CI is committed to pursuing those who line their pockets with profits from these schemes."
“Faulkner made false promises and statements to benefit from a scheme that left ruin in its wake,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “These sorts of schemes damaged neighborhoods and the regional economy, flooding the market with foreclosed homes. The FBI will continue to work with its law enforcement partners to ensure such crimes do not go unpunished.”
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigations, and the Federal Bureau of Investigation. Assistant United States Attorneys Philip Ferrari and Todd Pickles prosecuted the case.
New York Man Pleads Guilty to Emailing Death Threats to an Employee of an American Islamic OrganizationRead the Press Release
Bernhard Laufer, 58, a resident of Rego Park, Queens, New York, pleaded guilty yesterday in federal court in the Eastern District of New York, to sending threatening communications from New York to an employee of the Council on American Islamic Relations (CAIR) located in Washington, D.C. CAIR is a civil rights and advocacy group with offices nationwide.
According to documents filed with the court and statements made during the guilty plea hearing, Laufer admitted that he sent threatening communications to the employee of CAIR in June 2014. These communications threatened the employee with significant bodily harm and death.
"Those who make violent threats to others because of race, religion or national origin must be held accountable,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Justice Department is committed to vigorously prosecuting those who engage in such conduct.”
Laufer faces a maximum sentence of five years imprisonment.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Roy Conn of the Justice Department’s Civil Rights Division and Assistant United States Attorney Hiral Mehta for the Eastern District of New York.
New Jersey Man Charged with Passing Counterfeit Currency at Poconos CasinoRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced the filing of a criminal information yesterday charging Walter Cruz, Jr., age 36, of Paterson, New Jersey, with passing counterfeit United States currency at the Mount Airy Casino in Mt. Pocono, Pennsylvania, on October 20, 2014. The government also filed a plea agreement with the defendant which is subject to approval by the Court.
According to United States Attorney Peter Smith, the charge is the result of an investigation conducted by the Pennsylvania State Police and the United States Secret Service. Prosecution is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is twenty years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New Castle Man Charged with Robbing Two Banks in His HometownRead the Press Release
PITTSBURGH - A Lawrence County resident has been indicted by a federal grand jury in Pittsburgh on charges of bank robbery, United States Attorney David J. Hickton announced today.
The two-count indictment named Calvin Smith, 43, as the sole defendant.
According to the Indictment, on Nov. 5, 2014, Smith robbed Huntington Bank located at 101 E. Washington St., in New Castle and on Dec. 2, 2014, Smith robbed First Commonwealth Bank located at 27 E. Washington St., also in New Castle. The banks are both insured by the Federal Deposit Insurance Corporation.
For each count, the law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, 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 defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the New Castle City Police Department conducted the investigation leading to the Indictment in this case.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Moundsville, WV man charged with methamphetamine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Nicholas S. Dubrowski, 27, of Moundsville, West Virginia, with distributing methamphetamine in Marshall County, West Virginia in January and February 2015, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Marshall County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that Dubrowski both manufactured and received shipments of methamphetamine for redistribution and sale.
Dubrowski, also known as "Country," is charged with one count of "Conspiracy to Possess with Intent to Distribute Methamphetamine," and one count of "Possession with Intent to Distribute Methamphetamine." He faces up to 20 years in prison and a fine of up to $1,000,000.00 on each of the two counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah Montoro is prosecuting the case on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Morgantown CPA charged with tax fraudRead the Press Release
CLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Certified Public Accountant Gregory N. Cason, 45, of Morgantown, West Virginia, with tax fraud, United States Attorney William J. Ihlenfeld, II, announced.
Cason prepared tax returns for AKA Enterprises, Inc., a business entity operating several business in Morgantown, including a bar and restaurant facility. Cason is alleged to have knowingly underreported income, failed to report expenses paid in cash, and failed to report periodic cash payments to employees.
Cason is charged with one count of "Conspiracy to Defraud the Internal Revenue Service and to Aid and Assist in the Preparation and Filing of False Tax Forms," for which he faces up to five years in prison and a fine of up to $250,000.00. He is further charged with two counts of "Aid and Assist in the Preparation and Filing of False Tax Form." He faces up to three years in prison and a fine of up to $250,000.00 on each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government. The Internal Revenue Service – Criminal Investigation is leading the investigation.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Mexican National Sentenced to 12 Months Imprisonment for Eighth Illegal Reentry into United StatesRead the Press Release
The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that Santiago Ortiz-Otiz, formerly of New Cumberland, PA, was sentenced yesterday for illegal reentry. U.S. District Court Judge William J. Caldwell sentenced Ortiz-Ortiz to the one year imprisonment followed by 3 years supervised release.
Ortiz-Ortiz, a citizen of Mexico, was arrested by agents from the U.S. Immigration and Customs Enforcement (ICE) at the restaurant where he worked in Etters, PA, on April 23, 2014. Thereafter, Ortiz-Ortiz was indicted by a grand jury in Harrisburg for illegal entry into the United States after a felony conviction in May 2014. Ortiz-Ortiz pleaded guilty to the Indictment in October 2014.
The government’s investigation revealed Ortiz-Ortiz had been deported from the United States on eight prior occasions since 1987. His most recent deportation took place on August 8, 2008.
The case was investigated by the Homeland Security Investigations and was prosecuted by Assistant United States Attorney Kim Douglas Daniel.
# # #Mexican National Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOEL CANUL-CAUICH, age 26, a citizen of Mexico, pled guilty today to a one-count Bill of Information for illegal reentry of removed alien.
According to the Bill of Information, on or about January 20, 2015, CANUL-CAUICH was found in the United States after having been officially deported and removed on or about April 20, 2010.
CANUL-CAUICH faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Lance M. Africk set sentencing for April 16, 2015.
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.
Marion Woman Sentenced for Methamphetamine OffenseRead the Press Release
On March 3, 2015, Sarah Lindsey, 30, of Marion, Ill., was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Lindsey, who had previously pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 120 months in prison, to be followed by 3 years of supervised release, and fined $200.00. Lindsey was given credit for 10 months previously served on a related state case. The federal offense occurred between 2012 and January 22, 2014, in Williamson and Jackson Counties. Evidence at the plea hearing established that Lindsey was involved with others in the manufacture of methamphetamine. Lindsay obtained pseudoephedrine pills for herself or others to use to manufacture methamphetamine. During a January 22, 2014, Illinois Department of Corrections compliance check, agents located a methamphetamine lab at Lindsey’s Marion residence. At sentencing, the district judge found that Lindsey was responsible for the unlawful possession of more than 479 grams of pseudoephedrine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Illinois State Police/Southern Illinois Drug Task Force, Southern Illinois Enforcement Group, Marion Police Department and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.