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Wednesday 14 January 2015
Arkansas Man Pleads Guilty to Bank Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Crawford, Ark., man pleaded guilty in federal court today to leading a bank fraud conspiracy that used stolen mail and fake identifications to cash nearly $160,000 in fraudulent checks in Webster County, Mo., and elsewhere.
Phillip Daren Shockey, 49, of Crawford, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in an Aug. 27, 2014, federal indictment. Under the terms of today’s plea agreement, Shockey must pay a money judgment of $159,842, which represents the proceeds of the conspiracy and for which he is jointly and severally liable to pay with co-defendants.
By pleading guilty today, Shockey admitted that he was the leader of the conspiracy to defraud more than a dozen banks from July 31, 2013, to Feb. 28, 2014, by passing counterfeited and forged checks with fake identification documents. At least 12 co-conspirators stole mail, printed counterfeit checks, passed counterfeit checks with fake identification and opened at least five fictitious businesses for the sole purpose of concealing the deposit and subsequent withdrawal of counterfeit checks.
Shockey recruited co-conspirators to steal mail and act as “check runners” who used false identity documents in order to cash fraudulent checks drawn upon the accounts of bank customers. Shockey possessed computers, printers, scanners, cell phones, thumb drives, stolen mail and software in order to produce fraudulent identification and checks for his co-conspirators. Shockey also used false identifications of the banks’ customers and others in order to pass and attempt to pass fraudulent checks.
Shockey and those working at his direction passed and attempted to pass approximately 51 checks for a loss of at least $159,842.
Under federal statutes, Shockey is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Secret Service Financial Crimes Task Force, the U.S. Postal Service – Criminal Investigations, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Tulsa, Okla., Police Department, the Jasper County, Mo., Sheriff’s Office, the Webster County, Mo., Sheriff’s Office, the Greene County, Mo., Sheriff’s Office, the Columbia, Mo., Police Department, the Blue Springs, Mo., Police Department, the Monett, Mo., Police Department, the Pierce City, Mo., Police Department, the St. Clair County, Mo., Sheriff’s Department, the Rolla, Mo., Police Department and the Catoosa, Okla., Police Department.
Arizona Resident Charged with Failing to Pay Child Support to RI FamilyRead the Press Release
PROVIDENCE, R.I. – John Crosslin, 51, of San Tan Valley, Arizona, has been charged in federal court in Providence with failing to pay legal child support obligations for his son totaling more than $116,000, announced United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General.
According to an information filed in federal court today by the United States Attorney’s Office, in December 1994, a judge of the Rhode Island Family Court initially ordered the defendant to pay child support of $55 per week for his son. Effective July 2001, the Family Court ordered the support payment increased to approximately $152 per week.
It is alleged in court documents that since being ordered to make child support payments, John Crosslin has made only sporadic payments, if any, under the Family Court’s order. As of January 14, 2014, the defendant’s arrearage on his child support payments is approximately $116,391.66.
According to court documents, while the defendant has resided in other states, including Colorado and Arizona, he has had the ability to make child support payments but has failed to do so.
Failure to meet child support obligations, as defined in 8 U.S.C. '228(f)(3), is punishable by statutory penalties of up to 6 months in federal prison or 5 years probation, a $5,000 fine, 1 year supervised release, and mandatory restitution equal to the unpaid support obligation.
An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Rhode Island Child Support Enforcement Office.
A court date in this matter has not yet been scheduled.
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Contact: 401-709-5357
[email protected]Aliquippa Man Sentenced for Fraud SchemeRead the Press Release
PITTSBURGH - A Beaver County resident has been sentenced in federal court to 33 months imprisonment, and ordered to pay $415,389.32 in restitution on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Peter A. Kalemon, 46, of Aliquippa, Pa.
According to information presented to the court, Kalemon defrauded his former employer of $359,389.32 over approximately three years by submitting 126 fraudulent invoices which were paid to Kalemon’s fictitious transportation company via 81 checks mailed to his P.O. Box in Wheeling, West Virginia. In addition, Kalemon admitted negotiating another 176 fraudulent checks drawn against his former employer between March of 2012 and July of 2014, all of which he cashed in Wheeling for another $56,000.
Prior to imposing sentence, Judge Diamond stated that this well-planned crime was a violation of trust; and, although the defendant’s family responsibilities were a mitigating factor, the crime was aggravated because the defendant continued it after being detected.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Kalemon.
Abita Springs Man Sentenced for Running Illegal Wagering Operation and Money LaunderingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FRANK FRABBIELE, age 79, of Abita Springs, was sentenced today after previously pleading guilty to the transmission of wagering information and money laundering.
U.S. District Judge Helen G. Berrigan sentenced FRABBIELE to 8 months incarceration, forfeiture in the amount of $209,203.87, and a $200 special assessment.
According to court documents, beginning not later than January 2008 and continuing until April 9, 2014, FRABBIELE operated a gambling operation in which he took bets and wagers on football, basketball, and baseball games. In the course of conducting his gambling operation, FRABBIELE used a “pay-per-head” betting website based in Costa Rica to track, record, and register bets and clients, to which FRABBIELE paid a per-client fee. FRABBIELE’S relationship with the website caused information to be transmitted by wire from Abita Springs to the country of Costa Rica for the purposes of assisting in placing bets on football, baseball, and basketball. FRABBIELE also committed money laundering by depositing $20,000 cash, which was proceeds of the gambling operation, into a bank account on November 15, 2012.
U.S. Attorney Polite praised the work of the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation for investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Adams County Correctional Facility Inmate Pleads Guilty to Second Degree MurderRead the Press Release
Jackson, Miss –Ricardo Gonzalez-Porras, a federal inmate from Mexico, pled guilty today, before U.S. Senior District Judge David C. Bramlette, III, to second degree murder, U.S. Attorney Gregory K. Davis, announced.
The offense occurred on May 20, 2012 at the Adams County Correctional Center. During the riot, several correctional officers were assaulted and one Correctional Officer (CO) died as a result of injuries he received during these assaults. Other COs were taken captive and held hostage for several hours by participants in the riot. Total damage to ACCC was estimated to be $1,305,142.00.
U.S. Senior District Judge David C. Bramlette, III will sentence Gonzalez-Porras on April 7, 2015. The defendant faces a maximum sentence of life in prison and $250,000 fine.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Adams County Sheriff’s Office. Assistant U.S. Attorneys Pat Lemon and Jerry Rushing are prosecuting the case.
Tuesday 13 January 2015
Zephyrhills Brothers Sentenced to Prison for Firearms OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Dannie Carl Rayford, Jr. (32) to 15 years in federal prison, and his brother, Jermain Lavan Harrison (30), to 12 years and 7 months in federal prison for possessing firearms and ammunition. Both men were previously convicted of multiple felony offenses, including armed burglaries and drug violations.
Rayford and Harrison pleaded guilty on October 7, 2014.
According to court documents, on January 28, 2014, an undercover detective with the Pasco County Sheriff’s Office purchased an SKS assault rifle and narcotics from Harrison at the brothers’ residence. During the execution of a search warrant several days later, law enforcement officers found Harrison in possession of a loaded semi-automatic pistol. Officers also recovered four additional firearms, including two shotguns, as well as ammunition and an assortment of narcotics in Rayford’s bedroom. Both brothers subsequently admitted to dealing in narcotics and firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pasco County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to reduce violent crime in our communities.
Worcester County Man Sentenced to 16 Years in Prison for Producing Pornography Involving Two Girls Ages 10 and 12Read the Press Release
Also Possessed Over 8,000 Images and Videos of Child Pornography
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Laiton Blake Witkowski, age 42, of Stockton, Maryland, today to 16 years in prison, followed by lifetime supervised release, for producing and possessing child pornography. Judge Hollander also ordered that upon his release from prison Witkowski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.
According to his plea agreement, on October 8, 2013, Witkowski used a file sharing network which enabled a law enforcement officer to download from Witkowski’s computer. After further investigation, a search warrant was executed at his residence on February 6, 2014. Computers, hard drives, other electronic devices and approximately 455 CDs and DVDs were seized, all containing, or were used to produce and store, child pornography. A computer, eMachine and electronic notebook alone contained 8,000 images and 100 videos of child pornography. The CDs and DVDs also contained thousands of images and videos of child pornography, including images and videos involving prepubescent minors, and depicting sadism, masochism and other violence.
Further analysis revealed that Witkowski had produced images and videos of child pornography of two girls in August to September of 2009. The girls were approximately 10 and 12 years old at the time. In some images one victim appears to be sleeping, and in other images, the other victim is using the bathroom, or sitting at a computer with Witkowski standing behind her in sexually explicit poses.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Ocean City, Worcester County Sheriff’s Office, Maryland State Police Internet Crimes Against Children Task Force (ICAC) and the Worcester County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Woman Charged for Scamming $2 Million Life Insurance Payout Based on Fake DeathRead the Press Release
United States Attorney Andrew M. Luger today announced a complaint charging IRINA VOROTINOV, 48, with defrauding Mutual of Omaha Insurance Company for more than $2 million in life insurance proceeds by falsely claiming that her former husband died. Her son, ALKON VOROTINOV, 25, is charged with actively concealing the fraudulent scheme. IRINA was charged by criminal complaint with mail fraud, and ALKON was charged with having knowledge of the actual commission of a felony and concealing the crime. Both defendants appeared today before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota.
Assistant United States Attorney David J. MacLaughlin, who is prosecuting the case, said: “Fraud against insurance companies drives up the premiums paid by legitimate insureds. Those who cheat insurance companies should expect to be investigated, prosecuted, and held accountable for the economic harm inflicted on those who deal honestly with the insurance industry.”
According to the criminal complaint and documents filed in court, on April 22, 2010, Igor Vorotinov purchased a life insurance policy on his own life from Mutual of Omaha, and listed IRINA VOROTINOV and ALKON VOROTINOV as the beneficiaries. On October 1, 2011, police in Moldova received a phone call reporting a dead body at the entrance of the Cojusna village in central Moldova. Documents recovered from the body, including a passport, hotel cards, and contact phone numbers, identified the man as Igor Vorotinov.
According to the criminal complaint and documents filed in court, IRINA VOROTINOV traveled to Moldova to identify the body. Along with Igor’s cousin and a representative from the U.S. Embassy, IRINA went to the morgue where she identified the body as Igor. At IRINA’S request, the body was cremated on October 20, 2011, in Odessa, Ukraine. IRINA returned to Minnesota on October 29, 2011, and filed a death claim with Mutual of Omaha on November 7, 2011. Mutual of Omaha paid IRINA $2,048,414.09 in the form of a check sent on March 23, 2012, by U.S. mail to IRINA’S home in Maple Grove, Minnesota.
According to the criminal complaint and documents filed in court, IRINA and ALKON VOROTINOV opened an account at a local branch of U.S. Bank and deposited the check, which they both knew to be the life insurance policy proceeds resulting from the death of Igor Vorotinov. Between March 29, 2012 and January 2015, IRINA and ALKON together transferred more than $1.5 million of the life insurance proceeds to accounts located in Switzerland and Moldova.
According to the criminal complaint and documents filed in court, on November 27, 2013, ALKON was stopped by Customs and Border Protection (CBP) in Detroit, Michigan upon returning from a trip to Moldova. A computer seized by CBP agents contained digital photographs of Igor Vorotinov taken on April 19, 2013 and on May 12, 2013, in which Igor is alive.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information:
IRINA VOROTINOV, 50
Plymouth, Minn.
Charge:
• Mail Fraud, 1 count
ALKON VOROTINOV, 25
Plymouth, Minn.
Charge:
• Misprision of a Felony, 1 countVorotinov Complaint
The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Wisconsin Man Charged with Polo Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Wisconsin man was charged in federal court today with robbing a Polo, Mo., bank.
Oran Woodfin, 30, of Wisconsin, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Woodfin remains in federal custody pending a detention hearing.
Today’s federal criminal complaint alleges that Woodfin stole $7,867 from Bank Northwest, 305 Main St., Polo, on Friday, Jan. 9, 2015.
According to an affidavit filed in support of the criminal complaint, Woodfin entered the bank, approached a bank teller and ordered her, “Give me your money.” He allegedly kept his left hand inside his jacket as though he had a weapon. The teller pleaded with him, “Don’t shoot me,” and placed the cash from her teller drawer on the counter. Woodfin allegedly picked up the money and walked out of the bank.
Bank surveillance photos indicated the robber was driving a red Dodge extended cab pickup truck with a black canvas tonto cover in the bed of the truck. A witness to the robbery observed the truck had a broken driver’s side taillight cover although the bulb was still functioning. Photographs of the robber and the pickup truck were disseminated to the media.
On the same day, the affidavit says, Woodfin checked into the Super 8 Motel in Richmond, Mo. Employees at the motel saw the surveillance photos on a television newscast, thought that Woodfin and his vehicle matched the descriptions from the bank robbery and the photos, and notified the police department.
Richmond police officers arrested Woodfin without incident outside his motel room. Officers executed a search warrant at the motel room and seized $7,145, a new computer, clothes and a container of alcohol. The pickup truck had been reported as stolen out of Clark County, Wisconsin. Woodfin had a warrant for his arrest out of Wisconsin for a probation and parole violation.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Brent Venneman and D. Michael Green. It was investigated by the Caldwell County, Mo., Sheriff’s Department, the Polo, Mo., Police Department, the Richmond, Mo., Police Department, the Ray County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the FBI.
West Seneca Nurse Practioner Pleads Guilty to Tax EvasionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Scott Leuthe, 43, of West Seneca, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to tax evasion. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, said that between 2008 and 2011, Leuthe worked as a nurse a nurse practitioner for two diagnostic imaging businesses in the Western New York area. The defendant was paid as an independent contractor by both businesses but failed to report any of the income he received from one of the companies while claiming all the expenses he incurred in the performance of his duties there. Leuthe’s unreported income during this four-year period was in excess of $400,000. As a result, the defendant failed to pay approximately $134,000 in income taxes.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction Special Agent-in-Charge Shantelle P. Kitchen.
Sentencing is scheduled for April 20, 2015 at 1:00 p.m. before Judge Arcara.
Utah Man Pleads Guilty in Chinese Magnesium SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716)843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul Jr. announced today that Eldon Bott, 66, of Bringham City, UT, pleaded guilty conspiracy to commit money laundering before Chief U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 10 years in prison and a $250,000.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant and Gregory Magness arranged to become a source of supply for magnesium used in the production of countermeasure flares. Bott thereafter entered into an agreement with ESM Group, Inc., whereby he was compensated based on the amount of magnesium ESM sold for the production of countermeasure flares.
Between December 2003 and continuing through October 2006, the defendant sold magnesium powder used in the production of countermeasure flares for the United States Department of Defense. During this time period, the Department of Defense had a restriction that the magnesium used to produce countermeasure flares for the Department of Defense could not be from a foreign source. Aware of this restriction, the defendant knew that the magnesium blend that had been and continued to be sold for use in the production of countermeasure flares for the DoD contained atomized magnesium from China. Bott prepared certificates, relied on by the DoD, that misrepresented the supplied magnesium.
“The defendants in this case stand convicted of violating laws which protect American soldiers serving in times of war, and American businesses operating in times of peace,” said U.S. Attorney Hochul. “Particularly where the defense industry is concerned, this Office will not allow anyone to put personal profit ahead of public duty and military necessity.”
“These guilty pleas bring this nearly decade-long probe closer to full resolution,” said James Spero, HSI Special Agent in Charge. “HSI special agents, through an extensive investigation, proved that the individuals perpetuating this scheme essentially engaged in a reckless pattern of shortcut taking that put American servicemembers’ lives at risk. Our action in this case prevented untold harm.”
"Today's guilty plea demonstrates the continued commitment of the Defense Criminal Investigative Service (DCIS) and our partner agencies to pro-actively identify those intent on providing substandard, substituted products to the U.S. military in exchange for unwarranted exorbitant profits," said Craig W. Rupert, Special Agent in Charge, DCIS Northeast Field Office, the investigative arm of the Department of Defense (DoD), Office of the Inspector General. "Such schemes, perpetrated by dishonest contractors and individuals, place the American Warfighter in danger and erodes the confidence of the American taxpaying public."
IRS-Criminal Investigation Acting Special Agent in Charge Thomas E. Bishop said: “IRS Criminal Investigation was pleased to lend its expertise in conducting financial investigations to this diverse team of investigators. Through the cooperation among several law enforcement agencies, a complex scheme to defraud the U.S. government and potentially harm our nation’s security has been unraveled.”
In April 2010, Gregory Magness, Justin Magness, William Nehill, Charles Wright, and Eldon Bott were charged with participating in a conspiracy to import Chinese magnesium into the United States. All defendants now stand convicted.
The plea is the culmination of an investigation on the part of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, and the Department of Defense Criminal Investigative Service, under the direction of Edward T. Bradley, Special Agent in Charge, Northeast Field Office.
Eldon Bott is scheduled to be sentenced on May 27, 2015 at 2:00 p.m. by Judge Skretny.
United States Reaches Settlement Regarding Cleanup of Superfund Site in Warren County, New JerseyRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a proposed settlement with Pechiney Plastic Packaging Inc. (Pechiney), Albéa Americas Inc., Bristol-Myers Squibb Company, Citigroup Inc., and Rexam Beverage Can Company regarding the cleanup of the Pohatcong Valley Groundwater Contamination Superfund Site in Washington Borough, Washington Township, Franklin Township and Greenwich Township in Warren County, New Jersey. The Pohatcong site is contaminated with trichloroethylene (TCE) and perchloroethylene (PCE).
Under the proposed settlement, Pechiney will have primary responsibility for cleaning up contaminated soil and groundwater at the site, connecting some residents to public water to avoid contaminated groundwater, and operating systems to capture vapors that are getting into a manufacturing facility. As a precaution, Pechiney is continuing to monitor for vapor intrusion into homes at the site. In addition, EPA will receive approximately $29.5 million for certain past costs. Pechiney will also perform current and future cleanup work estimated to cost $62.5 million and will pay EPA’s future oversight costs.
As part of the settlement, EPA will recover civil penalties from Pechiney to resolve allegations that Pechiney violated a previous EPA order by failing to make satisfactory progress on a portion of the cleanup at the site. Pechiney will pay a cash penalty of $282,000. Pechiney will also restore and preserve approximately 60 acres of land, valued at $1.1 million, in Warren County, through a supplemental environmental project. This land will be converted to native grassland and will become part of the Morris Canal Greenway. The land will be managed by Warren County through its existing relationship with the New Jersey Youth Corps of Phillipsburg, a “second chance” program for young adults that provides opportunities to earn a GED while providing a valuable service to the community.
“This agreement will address a legacy of contaminated groundwater and soil in Warren County that exposed this community to dangerous health risks,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The settlement will help ensure residents have access to clean drinking water, require Pechiney to restore and preserve valuable native grasslands and pay for millions in past cleanup costs.”
“The settlement advances our cleanup and will help protect drinking water as well as safeguard people’s health,” said Regional Administrator Judith A. Enck for EPA. “The remaining cleanup work at the Pohatcong Valley site will proceed and an area of open space that can be enjoyed by members of the public will be restored and preserved.”
EPA added the Pohatcong site to the Superfund list in 1989 because of elevated levels of volatile organic contaminants, including TCE and PCE, in the groundwater. These contaminants were detected in public supply wells, which are now treated to meet drinking water standards before the water is distributed. The site includes a contaminated groundwater plume that is approximately 10 miles long and approximately 1.5 miles wide; nearly 9,800 acres.
Because of the size and complexity of the site, EPA divided the site into three parts. Today’s settlement covers work in all three portions of the site.
The first part is a large area of groundwater contamination located in Washington Borough. Residents of this area do not drink the groundwater because they receive drinking water from a public water supply that meets drinking water standards. For this part of the site, in 2006, EPA finalized a plan to pump out the contaminated groundwater and treat it using a technology that will strip out the pollutants by blowing air through the contaminated water to separate out the chemicals. The resulting clean water will be pumped back into the ground. An engineering design is underway to carry out this remedy. EPA is also performing a pump and treat remedy for a portion of the groundwater that is primarily contaminated with PCE. Some of the proceeds recovered through the settlement will fund this part of the site cleanup.
The second area of the site includes contaminated ground water in Franklin and Greenwich Townships. There is no public water supply currently available in most of this area and drinking water wells that are impacted by contamination have received individual treatment systems to provide safe drinking water. For this area, EPA is requiring the construction of water lines to provide potable water. The engineering design for this part of the project in ongoing.
The third part of the site is the contaminated soil and sediment in and around the former American National Can facility in Washington Township. EPA has determined that the primary source of TCE contamination in this area is the former American National Can facility, which was owned and operated by Pechiney in the 1990s and is currently owned and operated by Albéa Americas Inc. EPA is continuing to investigate this contamination. Pechiney has agreed to perform the cleanup on Albéa’s property, and the parties have reserved the issue of who will be responsible for remaining cleanup activities in this area.
In 2013, EPA’s indoor air sampling of the Albéa Americas facility showed unacceptable levels of TCE. EPA worked with Albéa to take actions to protect workers from exposure to harmful gases by reducing the levels of toxic contaminants in the air in the facility to safe levels. These steps included building a system that removes harmful chemicals from soil by extracting them in vapor form with a vacuum and then filtering the vapors through carbon filters to remove contaminants. EPA will be reimbursed for this work through the settlement.
The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers. EPA searches for parties legally responsible for the contamination at sites, and it seeks to hold those parties accountable for the costs of investigations and cleanups. Under today’s settlement, the parties responsible for the site are paying for or performing the cleanup work.
The proposed settlement will be subject to a 30-day public comment period upon the publication of a notice in the Federal Register.
Once it is published, a copy of the Federal Register notice with instructions about how to comment can be found on the Justice Department’s website.
The settlement requires approval by the U.S. District Court before becoming final.
For more information on the Pohatcong Valley Groundwater Contamination Superfund site, go to EPA’s website.
Twin Falls Woman Pleads Guilty to Controlled Substance DeliveryRead the Press Release
BOISE – Krista Federer, 46, of Twin Falls, Idaho, pleaded guilty today to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. The controlled substances were prescription medications diverted from the pharmacy where Federer worked, said Olson. Sentencing is set for March 26, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
According to the plea agreement, Federer worked as a pharmacy technician in a pharmacy in Twin Falls, Idaho. She stole and sold bottles of controlled substance prescriptions from the pharmacy stock to another individual without a prescription and outside the normal course of standard pharmacy practice. Generally, Federer arranged for the sales by text message and then put pill bottles in her car glove box in the pharmacy parking lot, where another individual retrieved the controlled substances and left payments. Specifically, on October 6, 2014, Federer illegally sold two bottles, each containing 100 pills of 20 mg oxycodone, and two bottles, each containing 100 pills of Dilaudid 4 mg (hydromorphone) for a total of $1,200. On October 14, 2014, Federer committed a similar diversion of controlled substances from her employer pharmacy by placing in her glove box three bottles, each containing 100 pills of oxycodone 30 mg, in exchange for $1,500. All of these are Schedule II controlled substances.
The case was initiated and investigated by the Twin Falls Police Department, and the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Taos Pueblo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Phillip Martinez, Jr., 59, a member and resident of Taos Pueblo, was sentenced today to 27 months in federal prison for his assault conviction. Martinez will be on supervised release for three years after completing his prison sentence.
Martinez was arrested in Oct. 2013, on an indictment charging him with assault with a dangerous weapon. According to the indictment, Martinez assaulted another Taos Pueblo man with a stick in the Pueblo of Taos on April 29, 2013.On June 9, 2014, Martinez pled guilty to a felony information charging him with assault resulting in serious bodily injury. In entering his guilty plea, Martinez acknowledged that the victim suffered serious bodily injury as a result of the assault.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.Shiprock Man Sentenced to Federal Prison for Robbing Farmington Bank Branch in February 2014Read the Press Release
ALBUQUERQUE – Ryan Lowe, 20, of Shiprock, N.M., was sentenced today to 30 months in federal prison for his bank robbery conviction. Lowe will be on supervised release for three years after completing his prison sentence. Lowe also was ordered to pay restitution to the victim of his crime.
Lowe was arrested on June 4, 2014, on a criminal complaint alleging that he robbed the Citizens Bank branch located at 500 West Broadway in Farmington, N.M., on Feb. 13. 2014. Lowe subsequently was charged with bank robbery in an indictment filed on June 11, 2014.
According to court filings, Lowe robbed the bank on Feb. 13, 2014, by presenting a demand note to a bank teller and taking cash from the teller. Between Feb. 14, 2014 and April 16, 2014, the FBI interviewed a series of witnesses who provided evidence establishing that Lowe was the person who robbed the bank.
Lowe entered a guilty plea to the indictment on Sept. 12, 2014. The guilty plea was entered without the benefit of a plea agreement.
This case was investigated by the Farmington office of the FBI and was prosecuted by Assistant U.S. Attorney Norman Cairns.
Pinetop Man Sentenced to 10 Years for AssaultRead the Press Release
Public Affairs
COSME LOPEZ
Telephone: 602.514.7694
Mobile: 602.686-8614
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WWW.JUSTICE.GOV/USAO/AZPINETOP MAN SENTENCED TO 10 YEARS FOR ASSAULT
PHOENIX – On Jan. 12, 2015, Lloyd Tito Burnette, Jr., 33, of Pinetop, Ariz., was sentenced by U.S. District Judge Paul G. Rosenblatt to 10 years’ imprisonment. Burnette pleaded guilty on Oct. 6, 2014, to assault resulting in serious bodily injury.
Burnette, a member of the White Mountain Apache Tribe, took his victim to a remote area of the Fort Apache Indian Reservation and assaulted her. As a result, the victim sustained serious bodily injuries.
The investigation was handled by the Bureau of Indian Affairs and the Federal Bureau of Investigation. The prosecution was handled by Dimitra H. Sampson and Rachel Stoddard.
CASE NUMBER: CR-13-8109-PCT-PGR
RELEASE NUMBER: 2015-005_Burnette# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Omaha Man Sentenced for Filing False Federal Income Tax ReturnsRead the Press Release
Dewayne K. Long, 53, of Omaha, Nebraska, was sentenced for conspiracy to defraud the United States by filing false federal income tax returns for income tax refunds. The Honorable Joseph Bataillon sentenced Long to one year and one day in prison, three years of supervised release and restitution in the amount of $440,924.00.
Beginning around December 1, 2008, through March 2010, Dewayne K. Long, and another individual conspired to defraud the Internal Revenue Service by filing false federal income tax returns which contained fraudulent claims for income tax refunds. These claims were based upon false amounts of federal income tax withheld which were reported on false Forms 1099-0ID. The Form 1099-OIDs (Original Issue Discount) improperly claimed that the clients had income and corresponding federal income taxes withheld, which resulted in a refund due from the IRS. Long and his co-conspirator caused nine (9) false claims to be filed with the IRS, totaling $4,701,010.00.“This defendant filed fraudulent tax returns with bogus claims in an attempt to steal from the U.S. Treasury and the taxpaying public,” said Tanya Brewer, Acting Special Agent in Charge of IRS Criminal Investigation.
This case was investigated by the IRS Criminal Investigation Division and the U.S. Postal Inspection Service.
New Orleans Woman Sentenced for Conspiracy to Commit Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KWANZA WELLS, age 34, a resident of New Orleans, was sentenced today for conspiring to defraud the Gulf Coast Claims Facility (GCCF).
U.S. District Judge Jay C. Zainey sentenced WELLS to three years probation, 72 hours of community service, $19,500 in restitution to the Deepwater Horizon Oilfield Trust, and $100 special assessment.
According to court documents WELLS, conspired to device a scheme to obtain money by means of fraudulent representations to defraud the GCCF. As a result of her false and fraudulent representations and documentation, the GCCF paid WELLS approximately $19,500.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the United States Secret Service and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Morris County, New Jersey, Man Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – Special agents of the FBIand officers of the Madison Police Department (MPD) arrested a Morris County, New Jersey, man at his home this morning for allegedly distributing sexually explicit images of children from his home computer, U.S. Attorney Paul J. Fishman announced.
Michael Hodukavich, 24, is charged by complaint with one count of distributing images of child sexual abuse over the Internet. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $100,000 bond.
According to the criminal complaint filed today:
On Nov. 20 and 21, 2014, Hodukavich distributed videos and images depicting child sexual abuse on the Internet via peer-to-peer file sharing software, which allowed others access to the material in shared directories. An undercover agent discovered and downloaded the images and videos, and the username and IP address of the sharer was traced back to Hodukavich’s residence.
The distribution count carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and the MPD, under the direction of Chief Darren Dachisen, Chief of Police, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Melissa M. Wangenheim of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
15-012
Defense counsel: James S. Friedman Esq., NewarkHodukavich, Michael Complaint
Miami-Dade Resident Sentenced to 14 Years in Prison in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Wisly Toussaint, 36, of Miami, was sentenced to 14 years in prison, followed by three years of supervised release, and was ordered to pay $317,557 in restitution.
Toussaint was previously convicted by a federal jury of one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b), two counts of access device fraud, in violation of Title 18, United States Code, Section 1029(a), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to evidence presented during the five-day trial, Toussaint possessed and trafficked in personal identifying information (PII), that is names, dates of birth and social security numbers, stolen from a mental health facility in Philadelphia, Pennsylvania. In October of 2013, Toussaint was approached by two individuals cooperating with law enforcement and agreed to sell the cooperators the stolen PII, which Toussaint stated he obtained from a partner in Sarasota, Florida. Toussaint later sold the cooperators hundreds of identities stolen from the mental health facility in two separately recorded meetings.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Maryland Woman Sentenced to Federal Prison for Massive Identity Theft and Tax Fraud SchemeRead the Press Release
A former bank employee was sentenced today to serve 87 months in prison for her role in a far-reaching identity theft and tax fraud scheme in which she used her position to help process deposits and withdrawals of nearly $1.1 million in fraudulently obtained federal income tax refunds.
Yvette Haden, 50, of Suitland, Maryland, is among approximately a dozen people who have pleaded guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information. The overall case involves the filing of at least 12,000 fraudulent federal income tax returns.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s Washington Division, Assistant Inspector General for Investigations John L. Phillips for the U.S. Department of Treasury, and Special Agent in Charge Kathy A. Michalko for the U.S. Secret Service’s Washington Field Office.
Haden pleaded guilty in April 2014 in the U.S. District Court for the District of Columbia to one count of conspiracy to defraud the United States and one count of bank fraud. She was sentenced by the Honorable Rosemary M. Collyer. As part of her plea agreement, Haden must pay $973,376 in restitution to the IRS and she also is subject to a forfeiture money judgment of the same amount. Upon completion of her prison term, Haden will be placed on three years of supervised release.
Haden was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance. At least 12,000 fraudulent federal income tax returns were filed for the tax years of 2005 through 2012, seeking refunds of at least $40 million. The returns were often filed in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. The refunds listed more than 400 “taxpayer” addresses in the District of Columbia, Maryland and Virginia.
The government’s evidence showed that participants in the schemes had various roles: some stole the identifying information; some permitted their personal identifying information to be used; some created and mailed the fraudulent federal tax returns; some permitted their addresses to be used for receipt of the refund checks; some helped cash the checks; some provided bank accounts for negotiation of checks; and some forged endorsements of identity theft victims on the refund checks.
According to the government’s evidence, from 2007 through 2010, Haden was employed as a financial services representative at a bank branch in Southeast Washington, D.C. She assisted co-conspirators in the scheme and violated the bank’s policies and procedures through a series of actions, including opening three business checking accounts in the names of three purported sole proprietorships. Haden, who at the time of her crimes had more than 25 years of banking industry experience, was solely responsible for verifying client identities and documents and entering client information directly into the computer. Once the accounts were opened, Haden aided the co-conspirators by processing deposits of fraudulently obtained U.S. income tax refund checks, as well as withdrawals. To hide her activity, she falsified slips documenting withdrawals. Haden was compensated by one of the co-conspirators for her role in the offenses.
Also, according to the government’s evidence, Haden opened a checking account in her own name at a credit union in 2012 and deposited or transferred 14 refund checks to that account.
In total, from June 2010 through November 2012, Haden negotiated 398 fraudulent income tax refund checks totaling $1,024,271.
In announcing the sentence, U.S. Attorney Machen, Acting Deputy Assistant Attorney General Wszalek, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Special Agent in Charge Michalko commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the U.S. Attorney’s Office’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who are prosecuting cases in the investigation.
Maryland Woman Sentenced to Federal Prison for Massive Identity Theft and Tax Fraud SchemeDefendant, A Bank Employee, Processed Deposits and Withdrawals of More Than $1 Million in Fraudulently Obtained Tax RefundsRead the Press Release
WASHINGTON –A former bank employee was sentenced today to serve 87 months in prison for her role in a far-reaching identity theft and tax fraud scheme in which she used her position to help process deposits and withdrawals of nearly $1.1 million in fraudulently obtained federal income tax refunds.
Yvette Haden, 50, of Suitland, Maryland, is among approximately a dozen people who have pleaded guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information. The overall case involves the filing of at least 12,000 fraudulent federal income tax returns.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s Washington Division, Assistant Inspector General for Investigations John L. Phillips for the U.S. Department of Treasury, and Special Agent in Charge Kathy A. Michalko for the U.S. Secret Service’s Washington Field Office.
Haden pleaded guilty in April 2014 in the U.S. District Court for the District of Columbia to one count of conspiracy to defraud the United States and one count of bank fraud. She was sentenced by the Honorable Rosemary M. Collyer. As part of her plea agreement, Haden must pay $973,376 in restitution to the IRS and she also is subject to a forfeiture money judgment of the same amount. Upon completion of her prison term, Haden will be placed on three years of supervised release.
Haden was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance. At least 12,000 fraudulent federal income tax returns were filed for the tax years of 2005 through 2012, seeking refunds of at least $40 million. The returns were often filed in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. The refunds listed more than 400 “taxpayer” addresses in the District of Columbia, Maryland and Virginia.
The government’s evidence showed that participants in the schemes had various roles: some stole the identifying information; some permitted their personal identifying information to be used; some created and mailed the fraudulent federal tax returns; some permitted their addresses to be used for receipt of the refund checks; some helped cash the checks; some provided bank accounts for negotiation of checks; and some forged endorsements of identity theft victims on the refund checks.
According to the government’s evidence, from 2007 through 2010, Haden was employed as a financial services representative at a bank branch in Southeast Washington, D.C. She assisted co-conspirators in the scheme and violated the bank’s policies and procedures through a series of actions, including opening three business checking accounts in the names of three purported sole proprietorships. Haden, who at the time of her crimes had more than 25 years of banking industry experience, was solely responsible for verifying client identities and documents and entering client information directly into the computer. Once the accounts were opened, Haden aided the co-conspirators by processing deposits of fraudulently obtained U.S. income tax refund checks, as well as withdrawals. To hide her activity, she falsified slips documenting withdrawals. Haden was compensated by one of the co-conspirators for her role in the offenses.
Also, according to the government’s evidence, Haden opened a checking account in her own name at a credit union in 2012 and deposited or transferred 14 refund checks to that account.
In total, from June 2010 through November 2012, Haden negotiated 398 fraudulent income tax refund checks totaling $1,024,271.
In announcing the sentence, U.S. Attorney Machen, Acting Deputy Assistant Attorney General Wszalek, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Special Agent in Charge Michalko commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the U.S. Attorney’s Office’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who are prosecuting cases in the investigation.
15-011Lyons Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Daniel Safranec, 29, of Lyons, NY, who was convicted of manufacturing more than 50 marijuana plants, was sentenced to 12 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on November 6, 2012, New York State Police troopers responded to a call in vicinity of 7312 Old Lyons Road in Lyons for a report of pigs which were not contained within a pen. Upon arrival, troopers saw two pigs loose in the yard of the residence. Troopers approached the residence to speak with the owner, whom they identified as Daniel Safranec, and detected the smell of marijuana coming from the residence. They briefly spoke with the defendant and then left the area. Troopers later returned with a search warrant. During the execution of the search warrant, troopers located 261 marijuana plants in various stages of growth, mason jars used for storage of dried marijuana, and various pieces of high wattage grow lights and other equipment necessary for operating a sophisticated indoor marijuana cultivation operation. Law enforcement also located and seized approximately $800.00 in US currency.
In April of 2013, after a follow-up investigation, Safranec was arrested on federal drug charges related to the November 6, 2012, incident. When officers went to arrest Safranec on April 23, 2013, they observed approximately five bundles of a substance which they believed to be marijuana located on a kitchen counter, marijuana clippings in a plastic bin in the living room and a glass mason jar on the kitchen counter which contained dried marijuana. Law enforcement obtained a second search warrant for the residence. Agents found marijuana on the floor near the bedrooms and multiple marijuana plant structures at various stages of growth, as well as equipment associated with a marijuana grow operation. In a barn on the property, officers discovered racks of marijuana which had been harvested and appeared to be drying. The harvested marijuana and the various items associated with marijuana cultivation, as well as a total of 202 marijuana plants, were seized.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the New York State Police, under the direction of Major Craig S. Hanesworth.
Luzerne County Man Sentenced to Prison on Drug ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County man was sentenced today, in federal court in Scranton, by Senior United States District Judge Edwin Kosik, to serve 60 months in prison on a charge of possession with intent to distribute marijuana.
According to United States Attorney Peter Smith, Michael Hughes, age 27, a resident of Kingston, pleaded guilty to the charge last year. Hughes was ordered to serve an additional 3 years’ under court supervision upon his release from prison.
Hughes was charged after an investigation conducted by the Kingston Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives resulted in the seizure of a firearm and a distribution quantity of marijuana from a vehicle operated by Hughes.The case was prosecuted by Former Assistant United States Attorney Amy Newman and Assistant United States Attorney William S. Houser.
Local Podiatrist Pleads Guilty to Health Care Fraud ChargesRead the Press Release
St. Louis, MO – LAWRENCE B. IKEN, DPM, and his company each pled guilty to charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided by Dr. Iken, from 2006 through July 2014. As part of his plea, Dr. Iken has agreed to a money judgment of $999,170, which represents the amount of reimbursement that he and his company received for the health care claims.
According to court documents, Dr. Iken and his company, Lawrence B. Iken, DPM, LLC., have offices in Manchester and Creve Coeur, Missouri. Dr. Iken is a sole practitioner who provided podiatry services to patients at his Manchester and at his Creve Coeur offices and at various nursing homes in the St. Louis area. In addition to his office practice, Dr. Iken is an independent contractor for Preferred Podiatry Group, Inc. (PPG). According to its website, PPG provides podiatric care to residents in nursing homes and other long-term care facilities in Missouri and five other states. As a PPG contractor, Dr. Iken provided services to nursing home residents on Wednesdays and Thursdays. With his plea, Dr. Iken admitted that on thousands of occasions, he billed Medicare, Medicaid and private insurance companies for the incision and drainage of abscesses and hematomas, when he actually only clipped the toenails of the patients.
Iken, of Chesterfield, and his company each pled guilty to one felony count of healthcare fraud before United States District Judge Ronald L. White. Sentencing has been set for April 17, 2015.
Dr. Iken now faces a maximum penalty of 10 years in prison and/or fines up to $250,000; the company faces a maximum fine of $500,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Local Businessman Pleads Guilty to Failing to File Tax ReturnRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID DAY, age 56, a resident of New Orleans, pled guilty today to failure to file tax returns.
According to the Bill of Information, from January 1, 2007, through at least December 31, 2010, DAY owned and operated Louisiana Support Services, Inc. (“LSS”), a limited liability corporation that provided courier services for law firms in southeast Louisiana. DAY was primarily responsible for the day-to-day activities of the company, including all financial matters and bookkeeping. From 2007 through 2010, DAY earned substantial amounts of income from the operation of LSS. For each of the tax years 2007 through 2010, DAY did not file individual tax returns within the time set forth by law and did not request an extension of time in which to file a return.
DAY pled guilty to failure to file a tax return for the year 2009, which carries a possible a maximum term of imprisonment of one year, a fine of $25,000 and one year of supervised release following any term of imprisonment.
U.S. District Judge Jay C. Zainey set sentencing on April 14, 2015.
U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigations Division in investigating this matter. Assistant U. S. Attorney Patrice Harris Sullivan is in charge of the prosecution.
KC Man Sentenced to Life in Prison for $20 Million Drug-trafficking Conspiracy, Murder-for-hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., was sentenced in federal court today for his role in a multi-million dollar drug-trafficking conspiracy and an unsuccessful murder-for-hire conspiracy.
Andre Taylor, also known as “Dre,” 49, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to life plus 30 years in federal prison without parole. The court sentenced Taylor to life in prison for the drug-trafficking and murder-for-hire convictions. The court also sentenced Taylor to a consecutive term of 30 years for possessing a machine gun in furtherance of a crime of violence.
On Sept. 10, 2014, Taylor was found guilty at trial of participating in a conspiracy to distribute large quantities of marijuana and cocaine between Feb. 1, 2010, and Feb. 25, 2014. Taylor was also convicted of participating in a conspiracy to commit murder-for-hire, aiding and abetting the distribution of cocaine and possessing a machine gun in furtherance of a crime of violence (the murder-for-hire conspiracy).
Evidence introduced during the trial indicated that Taylor was the head of a major cocaine and marijuana distribution organization in the metropolitan area. A Mexico-based cartel supplied narcotics to the drug-trafficking organization and Taylor sometimes traveled to Mexico to buy drugs for resale within the Kansas City area. Taylor boasted that he personally sent $20 million back to Mexico. Numerous shipments of cocaine, totaling more than 100 kilograms, were transported to Kansas City from Mexico.
Taylor’s relatives and others assisted him in recruiting buyers and arranging sales. His base of operation was in the 2300 block of Hardesty in Kansas City, Mo., where his family owned three houses next door to each other. Confidential informants participated in numerous controlled buys of narcotics. Many of those buys took place in, around, or outside of the three Taylor houses.
In intercepted telephone conversations, Taylor boasted of spending millions of dollars to buy drugs to sell in the Kansas City area. Based on telephone interceptions, a murder-for-hire plot was discovered during the conspiracy. The intended victim was a co-conspirator and former trusted associate of Taylor’s.
Co-defendant Victor Vickers, also known as “VV,” 30, of Kansas City, was found guilty at trial of participating in a conspiracy to distribute less than 100 kilograms of marijuana. In addition to Taylor and Vickers, 17 co-defendants have pleaded guilty to charges contained in the federal indictment.
Drug-Trafficking Conspiracy
A confidential source completed a series of controlled purchases of cocaine from Taylor and his co-conspirators in 2011 and 2012.
On Sept. 27, 2012, search warrants were executed at the three homes owned by the Taylor family at 23rd and Hardesty. Approximately 227 pounds of marijuana was seized, as well as an assault rifle and body-armor-piercing bullets. In addition, on Nov. 30, 2012, more than 1,000 pounds of marijuana, which was intended for delivery to Taylor, was recovered from a truck and trailer being driven by a co-conspirator. This co-conspirator told investigators that he had delivered marijuana to Kansas City to Taylor seven or eight times, and he had transported $500,000 to $700,000 to Arizona for these drug shipments.
FBI agents conservatively estimate that Taylor was responsible for distributing at least 120 kilograms of cocaine and at least 2,000 pounds of marijuana, either himself or through one of his many confederates.
Murder for Hire Conspiracy
The intended victim of the murder-for-hire conspiracy was co-defendant William E. Brown, also known as “Billy,” 43, of Kansas City. Taylor believed that Brown, a one-time trusted associate, stole $500,000 and more than 13 kilograms of cocaine from Taylor’s downtown loft apartment. (Taylor also maintained a residence at a luxury apartment on the County Club Plaza.) Taylor sought to hire a “hit man” to do the job and contacted co-defendant Kenneth Vaughn Cooper, 32, of Kansas City.
Brown pleaded guilty to his role in the drug-trafficking conspiracy and admitted that he purchased at least five kilograms of cocaine from Taylor. Cooper pleaded guilty to his role in the murder-for-hire conspiracy and admitted that he was supposed to be paid a share of the stolen $500,000 for committing the murder.
On Aug. 18, 2012, FBI agents intercepted a telephone call in which Taylor said, “it’s necessary to kill him,” referring to Brown.
On Aug. 21, 2012, agents intercepted a phone call between Cooper and Taylor. Taylor said he had a “hammer” at “23rd and Hardesty” and Cooper said he was going to come and get it. Later that day, Jackson County Sheriff’s deputies arrested Cooper on outstanding warrants while he was a passenger in a truck driven by his father. As deputies approached the vehicle they could smell burnt marijuana coming from inside. When the vehicle was searched, deputies recovered a firearms case behind the driver’s seat that contained a machine gun – a MAC-10 style homemade .45-caliber firearm with no serial number – and a metal stick magazine with 18 live rounds of .45-caliber ammunition.
This case was prosecuted by Assistant U.S. Attorneys Stefan C. Hughes and Cindi Woolery. It was investigated by the FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, the Jackson County Drug Task Force, the Lee’s Summit, Mo., Police Department, and the Kansas City, Mo., Police Department.
KC Man Charged with Bank Robbery, Carjacking Following Police ShootingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was shot by police officers was charged in federal court today with bank robbery and carjacking.
Steven Marquain Davis, 29, of Kansas City, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Davis is charged with armed bank robbery, carjacking and use of a firearm during a violent crime (carjacking).
Today’s criminal complaint alleges that Davis used a bomb to rob the Commerce Bank at 922 Walnut St., Kansas City, Mo., on Friday, Jan. 9, 2015.
According to an affidavit filed in support of the criminal complaint, Davis entered the bank between 4:10 and 4:20 p.m. Davis, allegedly holding a remote control device, approached a teller counter and placed a black duffel bag on the counter. The remote control was described as having a red wire wrapped around it and similar in appearance to the remote used on remote control toys. Davis allegedly told the teller “gimme everything” and that “it’s” on the side of the building, which the teller believed referred to a bomb because of the remote he was holding. The teller placed $29,689 in the black duffel bag.
After Davis left the bank, the affidavit says, he approached a 2012 Suzuki Grand Vitara on Petticoat Lane, mid-block between Main Street and Walnut Avenue. Davis allegedly pulled on the door handle and ordered the driver to open the door. When she refused, he allegedly pointed a handgun at her and again stated, “Open the door.” He began banging on the window of her vehicle with the handgun, the affidavit says, before she drove away from the area.
A witness confronted Davis in the street, the affidavit says. Davis allegedly pointed a handgun at the witness and stated, “What are you looking at?” Davis allegedly tried unsuccessfully to get into two other cars in the area before multiple police officers arrived on the scene. Davis allegedly pointed a handgun at the officers, who then fired at Davis and wounded him before taking him into custody. Investigators collected $29,690, a remote device and a Smith & Wesson .38-caliber revolver from the scene where Davis was arrested.
FBI agents located a device that appeared to be a bomb in the southwest area of the bank lobby. FBI and Kansas City, Mo., Police Department bomb technicians responded and determined the explosive device posed an imminent threat to public safety. Bomb technicians rendered the device safe.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Reaches Settlement with National Museum of Crime and Punishment to Improve Access for People with DisabilitiesRead the Press Release
The Department of Justice announced today that it has reached a settlement with the National Museum of Crime and Punishment (Crime Museum) to address alleged violations of the Americans with Disabilities Act (ADA). The settlement agreement resolves allegations that some of the Crime Museum’s programs, exhibits and facilities were not accessible to people with disabilities. As a place of public accommodation under Title III of the ADA, the Crime Museum is required to be accessible to people with disabilities and provide full and equal enjoyment of its goods, services and facilities.
The Crime Museum, located in Washington, D.C., explores the history of crime, law enforcement, forensic science and crime scene investigation (CSI). Displays and exhibits are spread across three stories and 28,000 square feet of gallery space focusing on law enforcement from medieval times, the time of pirates and the old west, up to the present. The Crime Museum’s permanent exhibits include a CSI lab, a simulated FBI shooting range, a high speed police simulator, a galley of notorious criminals and America’s Most Wanted stage set.
Under the settlement, the Crime Museum must take steps to ensure that all of its programs, exhibits and facilities are accessible to people with disabilities, including by:
- providing staff assistance or pre-recorded audio description of program and exhibit information for patrons who are blind or have low vision;
- providing a printed copy of program information that is not currently available in print, such as daily and seasonal exhibits that are not in the printed brochure, for patrons who are deaf or hard of hearing;
- providing museum tours that are audio described and include tactile experiences for individuals who are blind or have low vision;
- providing printed materials, floor plans and maps in alternate formats (audio, large print and Braille);
- providing a description in an accessible format of each museum-sponsored public program and special event;
- ensuring that its website conforms to the Level AA Success Criteria and Conformance Requirements of the Web Content Accessibility Guidelines 2.0; and
- remediating physical barriers such as protruding objects, inaccessible routes and restroom barriers.
“This agreement ensures that people with disabilities will be able to enjoy the fascinating elements of the history of crime and law enforcement together with their friends and family just like other patrons,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Justice Department is committed to removing these types of barriers, and we commend the Crime Museum’s efforts to improve accessibility for all patrons.”
The agreement resolves a compliance review under the ADA. People interested in finding out more about the ADA, the Standards for Accessible Design or this agreement can call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or visit the ADA website.
Jury Finds Red Lake Man Guilty of Distributing Child PornographyRead the Press Release
James Needham possessed more than 1,300 images of child sexual abuse
United States Attorney Andrew M. Luger today announced the conviction of JAMES PATRICK NEEDHAM, 53, of Red Lake, Minn., for distributing and possessing images and videos containing child pornography. On May 7, 2013, NEEDHAM was indicted on one count of Distribution of Child Pornography and one count of Possession of Child Pornography. On January 9, 2015, following a three-day trial, a federal jury found NEEDHAM guilty on both counts.
“Protecting children from the physical and psychological trauma associated with the distribution of images and videos portraying their sexual abuse is a law enforcement priority,” said Assistant U.S. Attorney Laura M. Provinzino. “This verdict demonstrates that those who possess and distribute child pornography will be prosecuted to the fullest extent of the law. I thank the jury members for their service in this very difficult case.”
As proven at trial, NEEDHAM possessed images and videos containing visual depictions of minors engaged in sexually explicit conduct. On August 4, 2010, NEEDHAM distributed several images of similar material. According to documents filed in court, the illegal images were reported to the National Center for Missing and Exploited Children (NCMEC) through its “Cyber Tipline.” The NCMEC notified the FBI which, in turn, tracked the username and IP address associated with the illegal images to NEEDHAM’S Red Lake residence. The Red Lake Police Department discovered more than 1,300 images and 100 videos containing child pornography on a computer at NEEDHAM’S home.
U.S. District Judge John R. Tunheim will sentence NEEDHAM at a later date, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Police Department in response to “cyber tips” reported to the National Center for Missing and Exploited Children.
Assistant U.S. Attorneys Laura M. Provinzino and Katharine T. Buzicky are prosecuting this case.
This case was brought as part of Project Safe Childhood (“PSC”), 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 U.S. Attorney offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
Defendant Information:
JAMES PATRICK NEEDHAM, 53
Red Lake, Minn.
Convicted:
• Distribution of Child Pornography, 1 count
• Possession of Child Pornography, 1 countJury Convicts Gregoire George of Possession of Prison Contraband ChargesRead the Press Release
St. Croix, USVI B After a three-day trial, a federal jury on St. Croix convicted Gregoire George, 37, of St. Thomas, of two counts of Possession of Prison Contraband and one count of Promoting Prison Contraband announced United States Attorney Ronald W. Sharpe, , Drug Enforcement Administration (DEA) Special Agent-in-Charge Vito S. Guarino, and United States Marshal Cheryl Jacobs.
The top count carries a maximum penalty of five years in prison. George remains incarcerated pending sentencing. No sentencing date has been set.
Evidence presented at trial established that on June 14, 2013, while an inmate at the Golden Grove Adult Correctional Facility on St. Croix, George was found to be in possession of a cellular phone and a homemade weapon commonly referred to as a shank. Both prohibited items were found inside his cell by Virgin Islands Bureau of Corrections Officers.
"Contraband in prison is something that threatens the safety and security of inmates, employees, and the community as whole. Inmates in possession of cellular telephones present a particularly sinister threat as they can be used to facilitate criminal activity including narcotics distribution and murder, " U.S. Attorney Sharpe said.
United States Attorney Sharpe commended the efforts of the DEA, USMS and the Virgin Islands Bureau of Corrections who investigated the case and Assistant United States Attorneys Rami S. Badawy and Everard Potter who prosecuted it.
Houston Woman Sentenced for Defrauding Charity Organization of More Than $65KRead the Press Release
HOUSTON – Simone Nicole Gary, 36, of Houston, has been ordered to federal prison following her convictions of mail and Social Security fraud in relation to the submission of fraudulent claims to the American Kidney Fund (AKF), announced U.S. Attorney Kenneth Magidson. She pleaded guilty Aug. 11, 2014.
Today, U.S. District Judge Lynn N. Hughes, who accepted the guilty plea, upwardly departed and handed Gary a sentence of 69 months in federal prison to be immediately followed by three years of supervised release. At the hearing, Judge Hughes questioned Gary extensively about her criminal history and stated that the defendant had been involved in a widespread spree of stealing other people’s money. The court has also entered an order imposing restitution in the amount of $79,201.89.
On July 15, 2010, Gary used the name and Social Security number of another person to obtain employment at Fresenius Medical Clinic (FMC) in Houston as a financial coordinator. As part of her duties, Gary assisted clients with their financial needs and verified insurance information.
FMC provides kidney dialysis to patients with kidney failure and is a longtime client of AKF, located in Rockville, Md. AKF awards financial grants to dialysis patients to obtain health care insurance. AKF has an online process which allows a dialysis clinic to submit a grant application on behalf of a patient.
While employed at FMC, Gary submitted fraudulent applications to AKF for grants to patients undergoing dialysis. As a result, AKF mailed grant checks payable to these patients to the attention of Gary at FMC in Houston. Gary took these checks, forged patient signatures and then deposited them into her own bank account.
As a result of the scheme, AKF suffered a loss of $65,768.78.
Previously released on bond, Gary was permitted to remain on bond but ordered to voluntarily surrender either to a designated U.S. Bureau of Prisons facility or to the U.S. Marshals Service on Feb. 3, 2015.
The case was investigated by the Secret Service and Social Security Administration - Office of Inspector General. Assistant U.S. Attorney John Braddock is prosecuting.
Hartford Heroin Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that ERIC COLON, 29, of Hartford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for conspiring to possess and distribute heroin, some of which he stole from his drug supplier.
According to court documents and statements made in court, in January 2013, the DEA’s Hartford Task Force began an investigation into the narcotics distribution activities of Luis Fernandez of East Hartford. The investigation, which included the use of court-authorized wiretaps and controlled purchases of narcotics, revealed that Fernandez’s family members and associates in southern California shipped heroin, cocaine and marijuana to Fernandez at various addresses in the Hartford area. Fernandez, who also was supplied with narcotics from individuals in New York, sold the drugs locally to other dealers and customers.
The investigation revealed that COLON acquired distribution quantities of heroin from co-defendant Jose Rivera-Baron on several occasions. During the course of the investigation, COLON, on behalf of co-defendant Joshua Saez, made arrangements to obtain approximately 140 grams of heroin from Rivera-Baron. On August 16, 2013, while under law enforcement surveillance, Rivera-Baron met with COLON and Saez in the parking lot of a restaurant on Franklin Avenue in Hartford. Following the meeting, COLON drove away at high rate of speed. Investigators believed that Rivera-Baron had been robbed and pursued COLON’s car. Saez exited the car and was taken into custody, but the chase of COLON was terminated for public safety reasons.
A search of Saez’s person revealed two handguns, as well as 138.1 grams of heroin that SAEZ and Colon had stolen from Rivera-Baron.
The quantity of heroin that Saez possessed would have produced nearly 7000 individual dosage bags and had a street value of approximately $35,000.
COLON was arrested on October 9, 2013. On October 20, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 100 grams or more of heroin.
More than 20 individuals have been charged with narcotics distribution and related offenses as a result of this investigation. Fernandez, Saez and Rivera-Baron have pleaded guilty and, on December 2, 2014, Saez was sentenced to 71 months of imprisonment. Fernandez and Rivera-Baron await sentencing.
This investigation has been led by the Drug Enforcement Administration’s Hartford Task Force, including personnel from the DEA Hartford Resident Office and the Bristol, Hartford, Manchester, New Britain, Newington, and Wethersfield Police Departments. Agencies assisting the investigation include the DEA in New Haven, Bridgeport, Los Angeles and Panama, Federal Bureau of Investigation, U.S. Marshals Service, U.S. Department of Homeland Security, U.S. Postal Inspection Service, Connecticut State Police, State of Connecticut Office of Adult Probation, and the Hartford, East Hartford and New Britain Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys S. Dave Vatti and Assistant U.S. Attorney Gabriel J. Vidoni.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Grants Pass Brothers Sentenced to Federal Prison for Drug TraffickingRead the Press Release
MEDFORD, Ore— On Monday, January 12, 2015, Senior U.S. District Judge Owen M. Panner sentenced Marco Antonio Gutierrez, 36, of Grants Pass, Oregon, to 14 years in federal prison, and his brother Samuel De La Cruz Gutierrez, 43, to 10 years federal prison, after they pled guilty to possession of methamphetamine and heroin with intent to distribute. Both will be on five years of supervised release after they complete their prison terms.
On January 21, 2014, the Rogue Area Drug Enforcement Team (RADE) executed a search warrant at the Gutierrez’ residence in Grants Pass, Oregon. The search warrant was based on information that the Gutierrez brothers were selling methamphetamine and heroin, possessed numerous firearms, and were frequently armed. Samuel and Marco Gutierrez were arrested just outside the front door. Samuel Gutierrez possessed $808 cash and several oxycodone pills. Marco Gutierrez possessed $4,982 cash and a user amount of methamphetamine. Inside the trailer officers found 116 grams actual methamphetamine, 870 grams of heroin, packaging materials, scales, and drug records. Officers also found several loaded firearms throughout the trailer, including a sawed-off shotgun, a stolen Colt .45 handgun, a .25 handgun, a .22 caliber revolver, a Smith and Wesson 9mm handgun, a Ruger .380 handgun, and a stolen Ruger Mini 14 assault rifle in a gun bag with three loaded high capacity magazines. Officers also found other stolen property, including a quad ATV and motorcycle.
Marco Gutierrez’s previous felony convictions include sale or transportation of marijuana in 1996, inflicting corporal injury on spouse in 2008, and transportation of a controlled substance in 2008. Marco Gutierrez also had a pending California charge from September 2013 in which multiple firearms and several rounds of ammunition were discovered in his vehicle during a traffic stop. Samuel Gutierrez has no prior criminal history.
This case was investigated jointly by the Rogue Area Drug Enforcement Team, the U.S. Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, and Firearms (ATF), Immigration and Customs Enforcement (ICE), and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Golden Grove Prisoner Sentenced to Four Months in Prison for Cell Phone PossessionRead the Press Release
St. Croix, USVI - District Court Judge Raymond Finch, on December 22, 2014, sentenced Golden Grove Prisoner Avery Monsanto, age 51, to four months in prison for Possession of Prison Contraband, United States Attorney Ronald W. Sharpe and U.S. Drug Enforcement Administration (DEA) Special Agent-in-Charge Vito S. Guarino announced. The sentence must be served consecutively to the sentence Monsanto was serving at the time of the offense. The Court also sentenced Monsanto to one year of supervised release.
Monsanto entered a guilty plea to Possession of Prison Contraband on August 6, 2014. The offense stemmed from a search of Monsanto’s prison cell while he was an inmate at Golden Grove Adult Correctional Facility located on St. Croix on April 7, 2014. Law enforcement officers discovered and seized three cellular telephones in a cell solely occupied by Monsanto. Cellular telephones are prohibited contraband in correctional facilities because they are known to be used by prisoners to intimidate witnesses, orchestrate narcotics transactions, and to facilitate other criminal activity including murders.
The case was investigated by the V.I. Bureau of Corrections Gang Intelligence Search Team and the DEA. This case was prosecuted by Assistant United States Attorneys Everard Potter and Rami Badawy.
Former Princeton, N.J. Youth Soccer Coach Sentenced to Three Years in Prison for Possessing Images of Sexually Exploited ChildrenRead the Press Release
TRENTON, N.J. – A former Princeton, New Jersey, youth soccer coach was sentenced today to 36 months in prison for possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Jorge A. Roman, 50, previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of possession of child pornography. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:On May 16, 2013, Roman possessed 600 or more images of child sexual abuse on various DVDs, computers or other digital media at his residence in Princeton. Some of the images in Roman’s possession were images of prepubescent minors engaged in sexually explicit conduct.
In addition to the prison term, Judge Pisano sentenced Roman to serve five years of supervised release.U.S. Attorney Fishman credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Postal Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office in Trenton.
15-010
Defense counsel: Lisa Van Hoeck Esq., Assistant Federal Public Defender, TrentonFormer Immigration Consultant Pleads Guilty to Filing False Tax ReturnsRead the Press Release
SAN JOSE – Evelyn Sineneng-Smith pleaded guilty in federal court in San Jose yesterday to filing a false tax return, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
In pleading guilty, Sineneng-Smith admitted that she operated an immigration consultation business and most of the income listed on her tax returns came from payments from her clients. She admitted that she filed false individual income tax returns for the 2002 and 2003 tax years by only providing her accountant with some of the financial records from her business, and these records materially understated her gross business income for each tax year. She further admitted that when she mailed the returns to the Internal Revenue Service, she knew that each return was not true and correct as to the amount of the gross receipts reports on the returns and would be paying less income taxes than she actually owed.
Sineneng-Smith, 67, of San Jose, Calif., was indicted by a federal Grand Jury on July 14, 2010. She was charged with two counts of willfully subscribing to a false tax return, in violation of 26 U.S.C. § 7206(1), three counts of encouraging and inducing illegal immigration for private financial gain, in violation of 8 U.S.C. §§ 1324(a)(1)(A)(iv) and (B)(i), and three counts of mail fraud, in violation of 18 U.S.C. § 1341. The tax counts were severed from the immigration and mail fraud counts. On July 30, 2013, a jury convicted Sineneng-Smith of three counts of encouraging and inducing illegal immigration for private financial gain, in violation of 8 U.S.C. §§ 1324(a)(1)(A)(iv) and (B)(i), and three counts of mail fraud, in violation of 18 U.S.C. § 1341.
Sineneng-Smith’s sentencing hearing is scheduled for May 18, 2015, before the Honorable Ronald M. Whyte, U.S. District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of 26 U.S.C. § 7206(1) is three years in prison and a fine of $100,000, plus restitution. The maximum statutory penalty for each count in violation of 8 U.S.C. §§ 1324(a)(1)(A)(iv) and (B)(i) is 10 years in prison and a fine of $250,000, plus restitution. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1341 is 20 years in prison and a fine of $250,000 fine, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Susan Knight and Philip Guentert are the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tracey Andersen and Nina Burney. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Five Defendants Plead Guilty in Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
Five Miami Dade College students, three of whom were employees of Target, pled guilty for their role in stolen identity tax refund fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Andy Lamour, 22, Tamica Smith, 26, Marie Joseph, 25, Gerrey Cherrelus, 22, and Sandy Jean-Louis, 21, all of Miami, each pled guilty to one count of conspiracy to commit an offense against the United States and to one count of theft of government property or money. As part of their plea agreements, Lamour, Smith, Joseph, Cherrelus and Jean-Louis agreed to pay restitution in the amounts of $26,172.00, $17,395.00, $22.399.00, $13,242.00, and $28,561.63, respectively.
According to court documents, Lamour, Cherrelus and Jean-Louis were students at Miami Dade College; Lamour, Smith and Joseph were employees of Target. From April 17, 2012 to January 24, 2013, the defendants participated in a tax fraud scheme with co-defendant Emmanuel Avrilien, 22, of Miami, where the defendants received fraudulently obtained tax refunds in their personal Higher One, Inc. and Citibank accounts. Defendant Avrilien paid the other defendants for allowing their accounts to receive the stolen tax refunds, and paid Lamour for recruiting Joseph and other individuals to participate in the scheme.
Court documents also state that defendant Avrilien and unknown co-conspirators filed a total of 139 fraudulent tax returns which directed the tax refunds to be deposited into one of the other defendant's accounts. After the tax refunds were deposited into a defendant’s account, that defendant withdrew the money from the account at ATMs or through counter withdrawals.
Sentencing for the defendants is scheduled for March 26, 2015. At sentencing, the defendants face up to five years in prison for the conspiracy charge, and up to ten years in prison for the theft of government property charge.
Avrilien is scheduled to commence trial on May 4, 2015.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to USPIS, IRS-CI, FBI, and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fifteen Charged in White Plains Federal Court with Narcotics Trafficking in and Around Westchester CountyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-In-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and George N. Longworth, the Commissioner of the Westchester County Department of Public Safety, on behalf of the Westchester County Northern Narcotics Initiative, announced the unsealing of an Indictment charging 15 defendants with conspiring to distribute heroin, crack cocaine, and powder cocaine in and around Westchester County from at least in or about January 2014 up to and including in or about January 2015.
Manhattan U.S. Attorney Bharara stated: “Illegal, damaging drugs such as heroin, crack and cocaine continue to be scourges of many communities north of New York City. We and our federal and local law enforcement partners are determined to prevent drug organizations from taking root in our communities, as evidenced by today’s charges and arrests.”
FBI Assistant Director-in-Charge Venizelos stated: “With the scourge of drugs often comes addiction and violence that can cripple a community. We will continue to dismantle the infrastructure for distributing heroin and cocaine, wherever we find it.”
Commissioner Longworth stated: “I am grateful to the FBI and the local chiefs of police who committed resources and personnel to this year-long, multi-agency investigation. I would also like to thank the U.S. Attorney’s Office and the Westchester District Attorney’s Office for partnering with us to combat the scourge of heroin in our communities.”
According to allegations in the Indictment unsealed today in White Plains federal court:
The Indictment charges 15 defendants and contains three counts. Count One charges LAKUAN RHYNE, a/k/a “Rico,” 22, JESSE DABBS, 24, DAIVON PRYOR, 19, JONATHAN THORNTON, a/k/a “Staxx,” 29, JOHNSON VANIYAPURAKAL, 26, and ALLEN WRIGHT, 24, with conspiring to distribute, and possess with intent to distribute, one kilogram or more of heroin in and around Westchester County, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A).
Count Two charges RHYNE, DABBS, MICHAEL DOUSE, 38, MICHAEL GRAY, 48, ANGELO HARRIS, 34, KEVIN HERBIN, 23, KEVIN MALLORY, 43, ROBERT MILLER, 35, DWAYNE MOUNTAIN, 27, and THORNTON with conspiring to distribute, and possess with intent to distribute, 280 grams or more of crack cocaine in and around Westchester County, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A).
Count Three charges RHYNE, DABBS, CURTIS DIMMIE, 47, DOUSE, GRAY, MICHAEL HARRINGTON, 34, MALLORY, MILLER, THORNTON, and VANIYAPURAKAL with conspiring to distribute, and possess with intent to distribute, 500 grams or more of cocaine in and around Westchester County, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B).
The charges against each defendant and the corresponding maximum potential penalties are outlined in the chart attached to this press release.
Twelve of the 15 defendants charged in the Indictment unsealed today were arrested today or had previously been taken into custody. Those defendants were presented in White Plains federal court this afternoon before U.S. Magistrate Judge Judith C. McCarthy. RHYNE was previously taken into custody by Arkansas state authorities, and will be presented in White Plains federal court on a future date.
Mr. Bharara praised the outstanding investigative work of the FBI, the Westchester County Northern Narcotics Initiative, comprised of the Westchester County Department of Public Safety and the police departments of Peekskill, Croton-on-Hudson, Buchanan, Bedford, Yorktown, Mount Kisco, and Ossining, as well as the FBI Violent Crimes Task Force. He also thanked the Westchester County District Attorney’s Office for its participation.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys George Turner and Michael Gerber are in charge of the prosecution. Assistant U.S. Attorney Margaret Graham is responsible for the forfeiture aspects of the case.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Rhyne, Lakuan, et al. Indictment 15 Cr 005
Federal Judge Sentences Three Women to Prison for Tax FraudRead the Press Release
BIRMINGHAM -- A federal judge on Monday sentenced three members of a Birmingham-area tax-fraud ring to years in prison for filing false tax returns in other people's names, announced U.S. Attorney Joyce White Vance and Internal Revenue Service-Criminal Investigation Division Special Agent in Charge Veronica Hyman-Pillot.Chief U.S. District Judge Karon O. Bowdre sentenced LATOSHIA SHEVELL HOLLIS, 39, to eight years and four months in prison; ANGELA GERNIAL BENNETT, 52, to five years and three months in prison; and KENNETHEA LASHELLE PARKS, 33, to two years in prison. The three Birmingham women all pleaded guilty last year to one count of conspiracy to defraud the government by filing false income tax returns. Together, they must pay $234,202 in restitution to the government.
During the sentencing hearings, the judge noted that it had become a popular "get rich quick scheme" in some criminal quarters to file fake tax returns in order to get the IRS to unwittingly send refund money to the criminals.
The group in which Hollis, Bennett and Parks participated sought nearly $900,000 in stolen tax-refund money over two years, and successfully received about $234,000. The conspiracy gathered personally identifying information on other people and used it to file false federal income tax returns in the names of at least 30 individuals for the 2008 tax year and at least 118 individuals for the 2009 tax year.
Hollis and Parks had extensive criminal histories, the judge noted, and said it is "time the community realizes that these crimes do not pay in the long run.""People who engage in tax fraud steal from each of us who pay our taxes as required," Vance said. "Monday's sentences punish these criminals for their fraud and theft and send the message to others who might think about participating in similar misdeeds that prison is the price they could pay," Vance said.
"Internal Revenue Service Criminal Investigation continues to make identity theft and refund fraud a top priority," Hyman-Pillot said. "Angela Bennett, Latoshia Hollis and Kennethea Parks stole from the United States Treasury and had no regard for the victims of their schemes. Our agency has a zero-tolerance policy for this type of criminal behavior," she said. "Monday's sentencing comes on the brink of tax-filing season, and I hope it serves as a warning to those who are considering similar criminal activities."
IRS-CID investigated the case, which Assistant U.S. Attorney Melissa K. Atwood prosecuted.
Federal Grand Jury IndcitmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Anderson County Resident Indicted for Possession of Child Pornograph
David D. Survilas, age 46, of Walhalla, South Carolina, was charged in a 1-count Indictment with possession of child pornography. The maximum penalty Survilas could receive is not more than twenty (20) years imprisonment and a fine of $250,000.00. This case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Foreign Nationals Charged with Illegal Re-entry
Jorge Hernandez-Morales, Nestor Perez-Antonio, Gerson David Ordonez-Irias, Ramon Alvarez-Ornelas, and Francisco Martinez-Sebastian were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by U.S. Immigration and Customs Enforcement (ICE) agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
Individual Indicted for Failure to Register as a Sex Offender
Paul Edward Philson, Jr., was charged in a 1-count Indictment with failure to register as a sex offender, a violation of Title 18, United States Code, Section 2250. The maximum penalty Philson could receive is ten years imprisonment. The case was investigated by agents of the United States Marshals Service and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Evansville man sentenced to 40 months in fraud caseRead the Press Release
Former insurance agent conspired to steal over $160,000 in commissions based on fraudulent annuity sales to elderly clients
EVANSVILLE - Josh J. Minkler, Acting United States Attorney, announced today an Evansville man was sentenced to 40 months (over three years) in federal prison by U.S. District Chief Judge Richard L. Young. Danny Lee Beavin, 40, Evansville, was found guilty yesterday of wire fraud, conspiracy to commit wire fraud, mail fraud and access device fraud.
“Risking the life’s savings of our seniors to make a fraudulent commission is a crime we take very seriously in my office,” said Minkler. “Those who choose to betray the trust of some of our most beloved citizens will be held strictly accountable.”
Beavin persuaded clients who were over 80 years old, to purchase annuity insurance policies issued by the Americo Company. Beavin made false statements on the applications indicating the clients were younger than 80, allowing him a larger commission. In some cases, he received commissions up to 9% of the original lump sum purchase amount. In some cases, persons over 80 years old were not eligible for the annuity policy he sold to them. The elderly clients trusted Beavin protect their interests and submit accurate information to the insurance company.
Beavin appeared before a magistrate judge on January 16, 2014, for an initial appearance on the original charges. After being released, he went to several health clubs in Vanderburgh and Warrick Counties for the purpose of stealing car keys and wallets from health club members who were using the facility. Beavin successfully used the stolen credit and debit cards of three the health club victims totaling $1,668, and attempted to use the cards for another $931. He used some of the money to buy gift cards, alcohol at an Evansville nightclub, gasoline and cash advances.
This case was jointly investigated by the United States Secret Service and the Evansville Police Department.
According to Assistant United States Attorney Todd Shellenbarger, who prosecuted the case for the government, Beavin was fined $2,000 and must serve three years of supervised release after his sentence. During the period of supervised release Beavin was ordered to pay restitution to the victims.Doctor Sentenced to Four Years for Tax FraudRead the Press Release
SAN DIEGO – Judge Anthony J. Battaglia today sentenced Dr. James Francis Murphy to 48 months in custody for his years-long efforts to obstruct the IRS from assessing and collecting the hundreds of thousands of dollars of income taxes he owed from the operation of his medical practices in Encinitas, California, and Omaha, Nebraska. Dr. Murphy was also ordered to pay nearly half a million dollars in restitution to the Internal Revenue Service.
His wife, Denine Christine Murphy, a co-defendant in the case, was sentenced to 12 months of house arrest and ordered to pay restitution of $147,528.
Evidence presented at trial showed that despite earning as much as $1 million a year from their osteopathic medical practice, Dr. and Mrs. Murphy paid almost no federal income taxes for a decade. Instead of accurately declaring their income and paying taxes lawfully owed to the United States, and despite repeated warnings from the IRS, the Murphys filed false income tax returns for the medical practice using a bogus “trust,” and filed false personal income tax returns concealing their true income. In addition, in some years the Murphys simply refused to file required tax returns at all. Incredibly, for several years their fraudulent tax returns triggered the Earned Income Credit, and resulted in their receiving tax refunds from the IRS.
As presented at trial, when confronted by the IRS and notified that they owed substantial sums in taxes, the Murphys engaged in a variety of schemes to prevent the United States from correctly assessing and collecting these taxes. These schemes included: (1) falsely claiming that they were not citizens of the United States; (2) frivolously claiming that the federal tax laws did not apply to them; (3) fraudulently presenting fictitious documents such as “Private Offset Discharge and Indemnity Bonds” and “Bonded Promissory Notes,” purportedly worth hundreds of millions of dollars, as payment on their tax obligations; and (4) fraudulently claiming that the hundreds of thousands of dollars they paid to credit card companies, utilities, and other vendors were actually withholdings of federal income taxes, thereby entitling them to over a million dollars in refunds from the IRS. The defendants even claimed that the then-Secretary of the Treasury, Henry Paulson, was their “fiduciary,” who was responsible for paying their taxes.
The defendants were found guilty by a jury on June 20, 2014 after a two-week jury trial held before Judge Battaglia. At today’s sentencing, Judge Battaglia described Dr. Murphy’s conduct as “a calculated, deliberate, and orchestrated series of efforts…to avoid tax liability.” The court noted that Dr. Murphy’s crimes represented “a pretty offensive set of circumstances.” Judge Battaglia decried the “nature of the arrogance, [in] how these mechanisms were utilized” to carry out what the court characterized as an “all out scheme to defraud the government.”
U.S. Attorney Laura E. Duffy commented, “The Murphys went to outrageous lengths to deprive the U.S. taxpayers of their fair share of the tax burden. It is especially egregious that they exploited the Earned Income Tax Credit, a credit intended to benefit low-income working families, to collect refunds they were not entitled to receive. Taxpayers should be aware that schemes to avoid paying taxes will result in serious consequences – including significant jail time – in addition to having to pay back taxes with interest.”
“As we approach tax filing season, it’s more important than ever that the American people feel confident that everyone is playing by the rules and paying the taxes they owe,” said Erick Martinez, Special Agent in Charge of IRS Criminal Investigation. “No matter what the source of income, all income is taxable. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’ enforcement strategy.”
Rod Ammari, Special Agent in Charge of the Treasury Inspector General for Tax Administration stated, “James and Christine Murphy’s attempts to corruptly impede tax administration by submitting fraudulent documents to the IRS will not be tolerated. These schemes that are used to avoid paying their fair share affects all hard working taxpayers, and Treasury Inspector General for Tax Administration is committed to investigating these criminal schemes.”
Dr. Murphy is required to surrender to begin his custodial term by February 24, 2015.
DEFENDANT Case Number: 12CR2497-AJB Dr. James Francis Murphy Age: 53Encinitas, California
Denine Christine Murphy Age: 52Encinitas, California
CHARGESCount 1: Corrupt interference with the administration of the internal revenue laws, in violation of 26 U.S.C. § 7212(a). Both defendants. Maximum penalties – 3 years’ custody, $250,000 fine.
Counts 2-5: Presenting fictitious financial obligations, in violation of 18 U.S.C. § 514. Defendant Dr. James Francis Murphy. Maximum penalties – 10 years’ custody and $250,000 fine (per count).
Counts 6-8: False claims to the United States, in violation of 18 U.S.C. § 287. Both defendants. Maximum penalties – 5 years’ custody and $250,000 fine (per count). INVESTIGATING AGENCIESInternal Revenue Service, Criminal Investigation
Treasury Inspector General for Tax AdministrationDetroit Gang Leader Sentenced to 346 Months in Prison for Planning Armed RobberyRead the Press Release
A leader of a street gang that operated on the east side of Detroit was sentenced to 346 months in prison today for aiding and abetting an armed robbery of a Little Caesars pizza restaurant, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Special Agent in Charge Steven Bogdalek of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Detroit.
Christopher LaJuan Tibbs, 38, of Detroit, was convicted on Aug. 29, 2014, of aiding and abetting an armed robbery after a three-day trial before U.S. District Judge Bernard A. Friedman of the Eastern District of Michigan.
The evidence at trial established that Tibbs, also known as “Chief Fatah,” was the leader of the Michigan branch of the Mafia Insane Vice Lords, a violent street gang that operated primarily on the east side of Detroit. The Mafia Insane Vice Lords was a local faction of the national Vice Lord gang that originated in Chicago. The evidence at trial further showed that, during his leadership of the Mafia Insane Vice Lords, Tibbs recruited and used young adults and children to commit crimes for the gang, and ordered the murder of a witness in connection with this case.
The evidence at trial showed that Tibbs helped plan an armed robbery of a Little Caesars restaurant in Redford, Michigan, in September 2013. Tibbs “blessed” it as a mission for the gang, and sent four subordinate members to commit the crime. As part of the planning for the robbery, Tibbs instructed the robbers to disable the cameras and phones in the Little Caesars. Tibbs also told the robbers what to wear, had them diagram the Little Caesars, and instructed them how to use the gun during the robbery. During the robbery, one of the robbers brandished a gun and forced the employees, including a pregnant woman, inside the store, where the robbers tore down the surveillance cameras. At the robbers’ direction, the employees disabled the alarm and opened the safe. Although he was not present for the robbery itself, Tibbs took a majority of the proceeds, some of which were spent on the gang.
This case marked the first time that the federal criminal street gang enhancement was charged in the Eastern District of Michigan. Because the jury found that Tibbs committed the crime to advance the criminal activities of his gang, the maximum penalty for aiding and abetting the robbery was increased.
The case was investigated by the ATF, with assistance from the Redford Police Department, Detroit Police Department, and Chicago Police Department. The case was prosecuted by Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Louis Gabel of the Eastern District of Michigan.
Department of Justice Seeks Recovery of Approximately $1,528,000 in Bribes Paid to a Honduran OfficialRead the Press Release
The Department of Justice filed today a civil forfeiture complaint seeking the forfeiture of nine properties worth approximately $1,528,000 that were allegedly purchased with funds traceable to a $2 million bribe paid by a Honduran information-technology company to the former Executive Director of the Honduran Institute of Social Security.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Polite, Jr. of the Eastern District of Louisiana and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) made the announcement.
“Mario Zelaya was the director of Honduras’s social security agency, but instead of building a social safety net for his country’s citizens, he allegedly used his position of public trust to steal public money for himself,” said Assistant Attorney General Caldwell. “Our action today highlights how the Criminal Division’s Kleptocracy Initiative, with our network of law enforcement partners around the globe, will trace and recover the ill-gotten gains of corrupt officials. Criminals should make no mistake: the United States is not a safe haven for the proceeds of your crimes. If you hide or invest your stolen money here, we will use all the legal tools we have to find it and seize it.”
“The United States Attorney’s Office for the Eastern District of Louisiana is committed to working with our law enforcement partners, both domestically and internationally, to ensure that this district is not used to launder corruptly obtained funds, no matter the source of the corruption,” said U.S. Attorney Polite.
“ICE’s Homeland Security Investigations will continue to work in cooperation with our international law enforcement partners to ensure that our country is not used as a safe haven for corrupt foreign officials to hide their assets,” said HSI Executive Associate Director Edge.
From 2010 to 2014, Dr. Mario Roberto Zelaya Rojas, 46, of Tegucigalpa, Honduras, served as the Executive Director of the Honduran Institute of Social Security (HISS), a Honduran Government agency that provides social security services, including workers’ compensation, retirement, maternity, and death benefits. According to allegations in the forfeiture complaint, Zelaya solicited and accepted $2.08 million in bribes from Compania De Servicios Multiples, S. de R. L. (COSEM) in exchange for prioritizing and expediting payments owed to COSEM under a $19 million contract with HISS. Zelaya also allegedly instructed COSEM to make bribe payments to two members of the Board of Directors of HISS charged with overseeing the COSEM contract. To conceal the illicit payments, COSEM allegedly sent the bribes through its affiliate company, CA Technologies.
As further alleged in the complaint, the bribe proceeds were then laundered into the United States and used by Zelaya and his brother, Carlos Alberto Zelaya Rojas, to acquire real estate in the New Orleans area. Certain properties were titled in the name of companies nominally controlled by Zelaya’s brother in an effort to conceal the illicit source of the funds as well as the beneficial owner. The current action seeks forfeiture of nine properties acquired with the proceeds of Zelaya’s alleged bribery scheme.
The investigation was conducted by HSI’s New Orleans and Miami Field Offices. The case is being handled by Trial Attorneys Stephen A. Gibbons and Marybeth Grunstra of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Daniel P. Friel of the Eastern District of Louisiana. Substantial assistance was provided by the Public Ministry of the Republic of Honduras and the HSI Attaché Tegucigalpa. The Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training Resident Legal Advisor in Tegucigalpa also provided valuable assistance.
This case was brought under the Kleptocracy Asset Recovery Initiative. Under that initiative, dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section work in partnership with U.S. Attorneys’ Offices and federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where possible and appropriate, put forfeited corruption proceeds to use for the benefit of the people of the country harmed by the abuse of public office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Complaint
Department of Justice Seeks Recovery of Approximately $1,528,000 in Bribes Paid to A Honduran OfficialRead the Press Release
The Department of Justice filed today a civil forfeiture complaint seeking the forfeiture of nine properties worth approximately $1,528,000 that were allegedly purchased with funds traceable to a $2 million bribe paid by a Honduran information-technology company to the former Executive Director of the Honduran Institute of Social Security.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Polite, Jr. of the Eastern District of Louisiana and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) made the announcement.
“Mario Zelaya was the director of Honduras’s social security agency, but instead of building a social safety net for his country’s citizens, he allegedly used his position of public trust to steal public money for himself,” said Assistant Attorney General Caldwell. “Our action today highlights how the Criminal Division’s Kleptocracy Initiative, with our network of law enforcement partners around the globe, will trace and recover the ill-gotten gains of corrupt officials. Criminals should make no mistake: the United States is not a safe haven for the proceeds of your crimes. If you hide or invest your stolen money here, we will use all the legal tools we have to find it and seize it.”
“The United States Attorney’s Office for the Eastern District of Louisiana is committed to working with our law enforcement partners, both domestically and internationally, to ensure that this district is not used to launder corruptly obtained funds, no matter the source of the corruption,” said U.S. Attorney Polite.
“ICE’s Homeland Security Investigations will continue to work in cooperation with our international law enforcement partners to ensure that our country is not used as a safe haven for corrupt foreign officials to hide their assets,” said HSI Executive Associate Director Edge.
From 2010 to 2014, Dr. Mario Roberto Zelaya Rojas, 46, of Tegucigalpa, Honduras, served as the Executive Director of the Honduran Institute of Social Security (HISS), a Honduran Government agency that provides social security services, including workers’ compensation, retirement, maternity, and death benefits. According to allegations in the forfeiture complaint, Zelaya solicited and accepted $2.08 million in bribes from Compania De Servicios Multiples, S. de R. L. (COSEM) in exchange for prioritizing and expediting payments owed to COSEM under a $19 million contract with HISS. Zelaya also allegedly instructed COSEM to make bribe payments to two members of the Board of Directors of HISS charged with overseeing the COSEM contract. To conceal the illicit payments, COSEM allegedly sent the bribes through its affiliate company, CA Technologies.
As further alleged in the complaint, the bribe proceeds were then laundered into the United States and used by Zelaya and his brother, Carlos Alberto Zelaya Rojas, to acquire real estate in the New Orleans area. Certain properties were titled in the name of companies nominally controlled by Zelaya’s brother in an effort to conceal the illicit source of the funds as well as the beneficial owner. The current action seeks forfeiture of nine properties acquired with the proceeds of Zelaya’s alleged bribery scheme.
The investigation was conducted by HSI’s New Orleans and Miami Field Offices. The case is being handled by Trial Attorneys Stephen A. Gibbons and Marybeth Grunstra of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Daniel P. Friel of the Eastern District of Louisiana. Substantial assistance was provided by the Public Ministry of the Republic of Honduras and the HSI Attaché Tegucigalpa.
This case was brought under the Kleptocracy Asset Recovery Initiative. Under that initiative, dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section work in partnership with U.S. Attorneys’ Offices and federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where possible and appropriate, put forfeited corruption proceeds to use for the benefit of the people of the country harmed by the abuse of public office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Counterfeit DVD Movie Supplier Sentenced to Federal PrisonRead the Press Release
A Brooklyn man was sentenced yesterday in Honolulu for his involvement in a counterfeit DVD movie ring, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Florence T. Nakakuni of the District of Hawaii.
Yakov Meir Chazanow, 41, was sentenced yesterday by U.S. District Judge Leslie E. Kobayashi of the District of Hawaii to serve 21 months in prison for conspiring to commit criminal copyright infringement, manufacturing counterfeit goods and to traffic in goods bearing counterfeit Dolby trademarks and counterfeit labels.
According to the evidence set forth in the record and at sentencing, from 2004 to 2011, Chazanow supplied over 30,000 high-quality pirated DVDs containing infringing copies of copyright-protected Asian action movies and corresponding counterfeit labels and packaging. He then distributed them to co-conspirators, who in turn sold them to consumers in stores and online.
Chazanow, Sharon Josef and Jeffrey Alan Stockton were all charged in June 2013, and Stockton pleaded guilty to the charged conspiracy and two counts of trafficking in counterfeit labels on Sept. 19, 2013. On Feb. 3, 2014, Chazanow pleaded guilty to the above charges, and Josef pleaded guilty to misdemeanor copyright infringement. On May 12, 2014, the court sentenced Stockton to 21 months in prison, ordered him to pay restitution of $150, and entered a preliminary order directing Stockton to forfeit $250,000 in illegal proceeds, $32,154 in U.S. currency, a 2003 Toyota Tundra, 29 gold bars, 62 gold coins, six palladium coins and five silver coins. Josef, who supplied pirated DVDs from 2011 to 2012, was sentenced yesterday to serve four months in prison.
The case was investigated by Immigration and Customs Enforcement’s Homeland Security Investigations. Assistance was provided by the Motion Picture Association of America, Dolby Laboratories, Inc. and DVD Format/Logo Licensing Corporation. The case was prosecuted by Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Andrea W. Hattan and Leslie E. Osborne, Jr. of the District of Hawaii.
Corrections Officer Admits Smuggling Cell Phones into Essex County Correctional Facility for Cash BribesRead the Press Release
TRENTON, N.J. – An Essex County Corrections Officer today admitted her involvement in a scheme to smuggle contraband, including cell phones, into the Essex County Correctional Facility, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Channel Lespinasse, 26, of Florham Park, New Jersey, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging her with one count of conspiring to commit extortion under color of official right.
According to documents filed in this and related cases and statements made in court:
On multiple occasions between August 2013 and January 2014, Lespinasse delivered contraband to federal pretrial detainees at the Essex County Correctional Facility in exchange for cash bribes. On one occasion in November 2013, Lespinasse agreed to deliver a cell phone to an inmate in exchange for $1,000. A conspirator retrieved the cell phone and the $1,000 payment from an individual outside of the facility – actually an undercover FBI agent – and gave the phone, along with a portion of the payment, to Lespinasse, who then delivered the contraband to the inmate.
The conspiracy charge to which Lespinasse pleaded guilty carries a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 7, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and investigators with the Internal Affairs Division of Essex County Correctional Facility, under the leadership of Essex County Corrections Director Al Ortiz, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Rob Frazer of the office’s Organized Crime/Gangs Unit in Newark.
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Defense counsel: Paulette Pitt Esq., Woodbridge, New JerseyCorporation Owner/CEO Sentenced to Statutory Maximum for Federal Income Tax FraudRead the Press Release
HOUSTON - Robert Earl Carter, 65, a resident of Fresno and the former owner/CEO of Enterprise Advisory Services Inc. (EASI), has been ordered to federal prison as a result of being convicted for making false statements in a federal income tax return, announced U.S. Attorney Kenneth Magidson. Carter pleaded guilty Sept. 9, 2014.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Carter the statutory maximum of 36 months in federal prison to be immediately followed by a year of supervised release. At the hearing, additional evidence was presented including testimony from a Texas Southern University (TSU) representative who informed the court TSU had never received the half-million-dollar African Art donation Carter reported in his 2005 federal income tax return. Carter had also claimed the art, via carryover charitable donation deductions, in his 2007 to 2010 tax returns. He was further ordered to pay a $75,000 fine. In handing down the sentence, Judge Ellison concluded Carter had not accepted responsibility for his criminal conduct and found his sworn assertion regarding the art not credible.
At the time of his plea, Carter admitted he willfully made a materially false statement in his 2009 personal federal income tax return by under reporting the total income he earned that year. Carter reported a total income of $276,270, failing to disclose an additional $309,821 in bonus income he received during that year. The investigation established that he had those bonus monies converted into a check payable directly to another company controlled by a family member. Approximately one month later, $286,821 was returned directly to Carter via a cashier's check.
EASI also issued Carter another bonus check for $195,000 on Dec. 22, 2009, which he deposited into his personal savings account. EASI reported this $195,000 payment as executive variable pay (a financial incentive program recognizing the contribution employees make to EASI’s success). EASI did not report the income in Carter’s W-2 form or issue a form 1099-MISC because EASI recorded this bonus payment as a reimbursement payment to Carter.
Carter did not, as required, report this $195,000 personal income on his 2009 individual federal income tax return.
In sum, Carter willfully and intentionally failed to report personal income totaling $504,821 on his 2009 tax return.
Previously released on bond, Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Internal Revenue Service – Criminal Investigation and NASA - Office of Inspector General. Assistant U.S. Attorney Daniel C. Rodriguez is prosecuting.
Convicted Sex Offender Pleads Guilty to Federal Charge of Failure to Register as AaSex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Nicodemus Darnell Jefferson (40, Jacksonville) has pleaded guilty to failing to register as a sex offender after traveling to Florida from Maryland. He faces up to 10 years in federal prison and a $250,000 fine. A sentencing date has not yet been set. Jefferson has been in custody since his arrest on September 30, 2014.
According to court documents, in December 1998, Jefferson was convicted of criminal sexual conduct with a minor in Charleston County, South Carolina. Subsequent to his conviction, he traveled from Maryland to Florida, where he has since resided. Jefferson failed to register as a sex offender in Florida as required by the Sex Offender Registration and Notification Act. On September 30, 2014, he was arrested at his Jacksonville residence and acknowledged that he had been living there since June 2014. He had obtained a Florida identification card on August 4, 2014, that referenced a different Jacksonville address as his residence.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the Jacksonville Sheriff’s Office, the United States Marshals Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another 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, 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.