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Monday 12 January 2015
Justice Department Settles Americans with Disabilties Act Case with Quinnipiac UniversityRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division, today announced that the government has reached a settlement with Quinnipiac University to resolve allegations that the university violated the Americans with Disabilities Act (ADA) by placing a student who had been diagnosed with depression on a mandatory medical leave of absence without first considering options for the student’s continued enrollment. Quinnipiac University is a private, coeducational university located in Hamden, Connecticut.
This matter stems from a complaint from a Quinnipiac University (“Quinnipiac”) student who had been removed from the university after she sought mental health counseling at the university. The complainant also alleged that, after she had been removed, Quinnipiac denied her request to refund her tuition.
Title III of the ADA prohibits discrimination on the basis of disability, including depression, by places of public accommodation.
The investigation determined that Quinnipiac discriminated against the complainant by placing her on mandatory medical leave because of her depression, and failed to consider modifying its mandatory medical leave policy to permit the complainant to complete her course work while living off campus by attending classes either online or in person.
Under the settlement agreement, Quinnipiac has agreed to pay to the complainant $17,000 to compensate her for emotional distress, pain and suffering, and $15,126.42 to pay off the loan she obtained to pay tuition to Quinnipiac. Quinnipiac also has agreed to implement a policy stating that it will not discriminate against applicants or students on the basis of disability, including persons with mental health disabilities, and to examine what modifications it can make to allow students with mental health disabilities to continue to participate in educational programs and attend their classes while seeking treatment for mental health conditions. The university also will provide training on Title III of the ADA, with a focus on mental health-related disability discrimination, to all staff.
“Quinnipiac removed this student from the university at a very vulnerable time in her life, and saddled her with a large student loan payment,” said U.S. Attorney Daly. “Instead of removing students from school, educational institutions must be equipped to manage and educate students who recognize, disclose and are treating their mental health disabilities. We’re pleased that Quinnipiac has settled this matter, compensated the complainant and will implement a non-discrimination policy to help prevent this ADA violation from occurring in the future.”
“This settlement agreement reflects the critical role that educational institutions play in ensuring that students with mental health disabilities are afforded an equal opportunity to fully participate in all that colleges and universities have to offer,” said Acting Assistant Attorney General Gupta. “Under the ADA, universities like Quinnipiac cannot apply blanket policies that result in unnecessary exclusion of students with disabilities if reasonable modifications would permit continued participation; in many cases, such modifications can be as simple as allowing a student to complete coursework on a modified schedule.”
This matter was handled by Assistant U.S. Attorney Lisa Perkins of the District of Connecticut and Trial Attorney Nabina Sinha of the Disability Rights Section of the Justice Department’s Civil Rights Division.
The U.S. Attorney’s Office for the District of Connecticut has partnered with federal and state agencies and advocacy groups to form the Educational Opportunities Civil Rights Working Group to address civil rights violations by public and private educational institutions, afterschool programs, summer camps and day care centers. To contact the Working Group, please call 203-821-3836.
Additional information about the ADA can be found at www.ada.gov or by calling the Department’s toll-free information line at 800-514-0301 or 800-514-0383 (TTY).
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Jury Convicts Titusville Police Officer for Federal Drug CrimesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Richard Irizarry (45, Viera) guilty of attempting to help distribute one kilogram of cocaine, and using a cellular telephone to commit a drug trafficking offense. He faces a maximum penalty of 40 years in federal prison. The sentencing hearing is scheduled for March 31, 2015.
According to testimony and evidence presented at trial, Irizarry joined the Titusville Police Department in 2010 as a sworn law enforcement officer. In the summer of 2013, he responded to an apartment complex and befriended a person, who, unbeknownst to Irizarry, was a DEA confidential informant. While at a New Year’s Eve party in 2013, Irizarry told the informant that he knew that he was a drug dealer, and that Irizarry wanted to get into the drug business with him to make money. On New Year’s Day, the informant reported the conversation to DEA, which immediately initiated an investigation.
On several occasions, Irizarry met with or called the informant, who recorded all of their meetings and telephone conversations. Irizarry often used his official police vehicle to meet the informant after his shift was over. On January 13, 2014, Irizarry looked up a license plate in a confidential database for the informant and identified it as belonging to an undercover DEA car. On another occasion, while on duty and in uniform, Irizarry parked his patrol car 50 feet away from the informant and an undercover agent that Irizarry believed was also a drug dealer. After listening to his police radio, Irizarry used his cellphone to tell the informant that it was safe to do a deal. Following that call, the informant handed the undercover agent what Irizarry believed was a kilogram of cocaine. For protecting the drug deal, the informant paid Irizarry $500.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Vincent A. Citro.
Joint Statement from the Justice Department and the Office of the Director of National Intelligence on the Declassification of Renewal of Collection Under Section 501 of the Foreign Intelligence Surveillance ActRead the Press Release
The Justice Department and the Office of the Director of National Intelligence released the following joint statement today:
On Dec. 8, 2014, the Director of National Intelligence declassified and disclosed publicly that the U.S. government had filed an application with the Foreign Intelligence Surveillance Court seeking renewal of the authority to collect telephony metadata in bulk, and that the FISC renewed that authority.
The FISC’s Dec. 4, 2014, primary order renewing the collection expires on Feb. 27, 2015. The DNI also announced that the administration was undertaking a declassification of the Dec. 4, 2014, primary order. Following this declassification review by the executive branch, the DNI has declassified and released in redacted form the Dec. 4, 2014, Primary Order signed by Judge Michael W. Mosman.
This order is now publicly available at the ODNI website, dni.gov, and the ODNI’s public website dedicated to fostering greater public visibility into the intelligence activities of the government, icontherecord.tumblr.com.
Insider iPad Thief ChargedRead the Press Release
BOSTON – The Director of Technical and Development Operations at a South Boston-based media technology company was charged today in connection with his alleged theft of nearly one million dollars’ worth of iPads and other Apple products from his employer.
Michael S. Denning, 33, of Peabody, was charged in an Information with mail fraud and filing false tax returns.
The Information alleges that in late 2010, Denning began working at a South Boston-based media technology company where his job responsibilities included purchasing computer equipment, software, and other technology-based products for use by employees. Shortly after he was hired, Denning began ordering extra Apple computer equipment, primarily iPads, from a wholesale computer vendor. Denning then intercepted these packages and sold them for cash, initially on eBay and Craigslist, and later to eBay resellers. Denning generated and submitted fraudulent invoices so that his company would pay the wholesale vendor. In doing so, Denning changed the description on the invoices so that they appeared to be for other items that he had legitimately purchased, such as software licenses, toner cartridges, computer monitors and other items. He also took measures to conceal the theft with the wholesale vendor, for instance by falsely noting that the iPads ordered were for “new hires.” By the end of 2013, Denning, who was promoted to Director of Technical and Development Operations, had ordered almost one million dollars of Apple computer equipment in this manner when only a handful of these products were legitimate purchases. Denning filed individual income tax returns that falsely listed his salary from as his employer as his only source of income.
The charge of mail fraud provides a statutory maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gain or loss, whichever is greater. The charge of filing false tax returns provides a sentence of no greater than three years in prison, one year of supervised release, a fine of $250,000 or twice the gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service; and William P. Offord, Special Agent In Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
The details in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hutchinson Woman Pleads Guilty to False Tax Claim, Firearms ChargeRead the Press Release
WICHITA, KAN. - A Hutchinson woman pleaded guilty Monday to filing a false tax return and violating a federal law prohibiting her from having a gun, U.S. Attorney Barry Grissom said.
Rhonda J. Simmons, 40, Hutchinson, Kan., pleaded guilty to one count of presenting a false tax claim and one count of unlawful possession of a firearm after a felony conviction. In her plea, she admitted that on April 15, 2012, she prepared a false income tax return seeking a refund of $3,014.
On Aug. 14, 2012, the Hutchinson Police Department executed a search warrant on the residence where she was living in Hutchinson. They seized a 20 gauge shotgun belonging to Simmons. She was prohibited from possessing a firearm because she had been convicted of a felony in 2007 in Georgia.
Sentencing is set for March 30. She faces a maximum penalty of 10 years and a fine up to $250,000 on the firearm charge, and a maximum penalty of five years and a fine up to $250,000 on the tax charge.
Grissom commended the Internal Revenue Service and the Hutchinson Police Department for their work on the case.
Huntington man sentenced for distribution of oxymorphoneRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Joey Jamal Braggs, also known as “Fresh,” 30, of Huntington, West Virginia, was sentenced to 12 months and one day in federal prison.
Braggs pleaded guilty in September 2014, to selling oxymorphone to a confidential informant.
On July 25, 2014, Braggs met with and sold the informant 10 oxymorphone pills in exchange for $600. Braggs sold eight additional 40-mg oxymorphone pills to the informant through a middle man on July 28, 2014.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The investigation was conducted by the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Gregory McVey handled the prosecution of this case.
Huntington man pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Thomas Edward Hill, 40, of Huntington, West Virginia, pleaded guilty to distributing heroin.
On May 21, 2014, officers utilized a confidential informant to arrange a heroin transaction through Clarence Edward House II, also known as “Nitty.” The informant contacted House and negotiated the purchase of 7.5 grams of heroin in exchange for $800. House and Hill later met with the informant in House’s vehicle, where Hill distributed the heroin to the informant at House’s direction.
House pleaded guilty to aiding and abetting the distribution a quantity of heroin on Dec. 8, 2014.
Hill faces up to 20 years in federal prison, and is scheduled to be sentenced on April 13, 2015.
Chief United States District Judge Robert. C. Chambers presided over the plea hearing.
The Federal Bureau of Investigation Drug Task Force conducted the investigation. Assistant United States Attorney Joseph Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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.
Hamilton Man Sentenced to 195 Months for Bank Robbery, Owning Child PornographyRead the Press Release
CINCINNATI – Shane E. Bowlin, 39, of Hamilton, Ohio, was sentenced in U.S. District Court today to 195 months in prison for bank robbery, attempted bank robbery and possession of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Steven Dettelbach, United States Attorney for the Northern District of Ohio, Barbara L. McQuade, United States Attorney for the Eastern District of Michigan, David J. Hickton, United States Attorney for the Western District of Pennsylvania, and John Barrios, Federal Bureau of Investigation (FBI) Acting Special Agent in Charge, Cincinnati Division, announced the sentenced handed down today by U.S. District Judge Timothy S. Black.
On or about June 20, 2013, Bowlin robbed a Fifth Third Bank in Lambertville, Mich. During that robbery he utilized a dangerous weapon. Later that month, he attempted to rob a Citizens Bank in Verona, Pa. and successfully robbed a PNC Bank in Cuyahoga Falls, Ohio. In July, he robbed the Delaware County Bank and Trust Company in Galena, Ohio.
In July, investigators discovered a large amount of cash in a hotel room occupied by Bowlin and in his vehicle. They also uncovered dye-stained money and disposable gloves tying him to the Lambertville robbery. During the search, officers also discovered approximately 1700 images and 55 videos depicting child pornography in a thumb drive and on a laptop computer.
Bowlin pleaded guilty to three counts of bank robbery, including the Michigan robbery which was originally filed in the Eastern District of Michigan and transferred to the Southern District of Ohio. He also pleaded guilty to one count of attempted bank robbery and possession of child pornography.Bowlin was also sentenced to 5 years supervised release with a lifetime of registration as a sexual offender.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, Sharonville Police Department, Ohio Bureau of Criminal Investigation, Delaware County Sheriff’s Office, Cuyahoga Falls Police Department, Canal Fulton Police Department, Monroe County, Mich. Sheriff’s Office, and Penn Hills, Pa. Police Department, as well as Criminal Chief Kenneth L. Parker, who is representing the United States in this case.
Gila River Man Sentenced to 18 Years in Prison for MurderRead the Press Release
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WWW.JUSTICE.GOV/USAO/AZGILA RIVER MAN SENTENCED TO 18 YEARS IN PRISON FOR MURDER
PHOENIX – On Jan. 12, 2015, Christian Kisto Vela, 22, a member of the Gila River Indian Community, was sentenced by U.S. District Judge Diane Humetewa to 216 months in prison. Vela pleaded guilty on Oct. 14, 2014, to second degree murder.
On April 12, 2014, the defendant shot the victim to death outside a home in Bapchule, Arizona.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan and Melissa Karlen, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-14-00583-PHX-DJH
RELEASE NUMBER: 2015-04_Vela# # #
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.Fourth Man Enters Guilty Plea Relating to Large Sequoia National Forest Marijuana GrowRead the Press Release
FRESNO, Calif. — David Arreola Villareal, 29, of Michoacàn, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land and possessing a firearm in furtherance of the conspiracy, U.S. Attorney Benjamin B. Wagner announced.
According to the plea agreement, Arreola and co-defendants Hernan Cortez‑Villaseñor, 40, Homero Pacheco-Rivera, 22, Alfonso Cornejo, 32, and Jose Luis García-Villa, 22, also of Michoacàn, Mexico, conspired to grow approximately 8,876 marijuana plants in the Greenhorn Creek area of the Sequoia National Forest in Kern County. Arreola possessed a 9 millimeter semi-automatic handgun when he was arrested at the grow site.
In pleading guilty, Arreola also agreed to compensate the U.S. Forest Service for the extensive damage to the land and natural resources caused by the cultivation. Native oak trees and other vegetation were cut down or otherwise killed to make room for the marijuana plants. The soil was tilled, and fertilizers and pesticides, including Fosfuro de Zinc, an illegal rat poison, were spread throughout the site. Fosfuro de Zinc contains zinc phosphide, a highly toxic chemical that can sicken or kill human beings. When Arreola was apprehended, he was sick and had to be air-lifted out of the grow site. According to Arreola, several other growers had previously left the site, because they were sick.
Arreola is scheduled for sentencing on March 23, 2015, before Senior U.S. District Judge Anthony W. Ishii. He faces a maximum prison sentence of five years for the drug conspiracy and a mandatory consecutive prison term of five years for the gun charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Cortez-Villaseñor, Cornejo, and García-Villa previously entered guilty pleas. Cortez-Villaseñor was sentenced to a 10-year prison term, while Cornejo and García-Villa were both sentenced to prison terms of three years and 10 months. Pacheco-Rivera is a fugitive.This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Environmental Protection Agency Criminal Investigation Division, and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Four Portland Residents Plead Guilty to $1 Million Tax Fraud SchemeRead the Press Release
Acting Deputy Assistant Attorney General Larry J. Wszalek for the Department of Justice’s Tax Division, U.S. Attorney S. Amanda Marshall for the District of Oregon and Chief Richard Weber for the Internal Revenue Service-Criminal Investigation (IRS-CI) announced that Jheraun Dunlap, Ernest Bagsby, Jermaine Moore and Brandi McCall pleaded guilty today to a $1 million federal tax refund fraud scheme.
Dunlap admitted to filing 208 false federal income tax returns with false wages, false withholding and false refundable credits that claimed a total of more than $1 million in fraudulent refunds. Dunlap filed false tax returns using the names and social security numbers of other individuals obtained directly and through Bagsby, Moore and McCall. Dunlap filed a number of false tax returns using identities stolen by co-defendant Carolyn Gallagher, who previously pleaded guilty to identity theft. Dunlap also used addresses obtained by Bagsby, Moore and McCall to receive stored-value debit cards loaded with fraudulent income tax refunds.
On Jan. 12, all four defendants pleaded guilty before Senior District Judge Robert E. Jones in the District of Oregon. Dunlap pleaded guilty to conspiracy to defraud the government, wire fraud and aggravated identity theft. Bagsby and Moore pleaded guilty to conspiracy to defraud the government, theft of government funds and aggravated identity theft. McCall pleaded guilty to conspiracy to defraud the government. All four defendants have agreed to pay full restitution to the U.S. Treasury in the amount of $427,896.
This case was investigated by the IRS-CI’s Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former USD Athletes Sentenced in IRS Fraud CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that two former University of South Dakota football players convicted of Conspiracy to Defraud the United States and Aggravated Identity Theft were sentenced on January 12, 2015, by U.S. District Judge Karen E. Schreier.
Alphonso Rico Valdez, age 23, of Nashville, Tennessee, was sentenced to 37 months in prison on the conspiracy charge, and 24 months on the ID theft charge, to be served consecutively. Upon release from prison he will be on supervised release for 3 years. Valdez was also ordered to make restitution to the Internal Revenue Service (IRS) in the amount of $421,116, and to two ID theft victims in the amount of $866.83.
Terry Daron Liggins, age 29, of Sioux Falls, South Dakota, was sentenced to 15 months in prison on the conspiracy charge, and 24 months on the ID theft charge, to be served consecutively. Upon release from prison he will be on supervised release for 3 years. Liggins was also ordered to make restitution to the IRS in the amount of $339,535, and to two ID theft victims in the amount of $866.83.
Valdez, Liggins, and 9 others were indicted on the above charges by a federal grand jury on May 8, 2013. Valdez and Liggins pled guilty on October 16, 2014.
Valdez and Liggins were involved in a scheme to defraud the United States by using personal identifying information, including names, Social Security numbers, and dates of birth, of other individuals to file bogus income tax returns showing tax refunds due. The requested refunds totaled approximately $1 million, and the IRS paid fraudulent claims of over $400,000 before the fraud came to light.
During his involvement in the scheme, Valdez had co-conspirators obtain identities, including names, Social Security numbers, and dates of birth. Valdez provided the stolen identities to other co-conspirators to be used to file fraudulent income tax returns with the IRS. Valdez also had co-conspirators provide him with addresses to use on the fraudulent income tax returns and, in turn, provided those addresses to other co-conspirators so that refund checks could be received in the mail. Valdez received fraudulent income tax refunds in the mail at the addresses he obtained/provided, and deposited the funds into his own bank accounts and those of his co-conspirators.
During Liggins’ involvement in the scheme, he sent a text message to a co-conspirator containing stolen identities, including names, Social Security numbers, and dates of birth, to be used to file fraudulent income tax returns with the IRS. He also provided a co-conspirator with addresses knowing that the addresses would be used in the scheme to receive fraudulent tax refunds in the mail.This case was investigated by the Vermillion Police Department, the South Dakota Division of Criminal Investigation, and the IRS Criminal Investigation Division. Assistant U.S. Attorney John E. Haak prosecuted the case.
Both men were ordered to surrender to the U.S. Marshals Service by noon on February 16, 2015.
Former Sandwich, Illinois Business Owner Pleads Guilty to Making A False Statement to A Financial InstitutionRead the Press Release
ROCKFORD — A former Sandwich, Ill. business owner pleaded guilty today before U.S. District Judge Frederick J. Kapala to a charge of making a false statement to a financial institution. The defendant, STEVEN J. MOORHOUSE, 62, was President and majority owner of Jefsco Manufacturing Co., Inc., a manufacturing business.
According to the plea agreement, during July 2009, Moorhouse sought a lender to make business loans to Jefsco and began to provide Jefsco’s financial information to Old Second National Bank (OSNB). The plea agreement further states that on Dec. 4, 2009, Moorhouse provided OSNB with a document that falsely inflated the value of the accounts receivable owed to Jefsco by hundreds of thousands of dollars. Moorhouse admitted he was aware that the amount of loan proceeds that OSNB would disburse would be, in part, determined by the amount of receivables.
Moorhouse faces a penalty of up to 30 years in prison, a term of supervised release of up to five years following imprisonment, a fine of up to $1 million, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution. Sentencing for Moorhouse is set for April 16, 2015, at 2:30 p.m.
The guilty plea was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Christy Romero, Special Inspector General for the Troubled Asset Relief Program; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation was conducted jointly by the Office of the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Former Puerto Rico Police Officer Sentenced for Obstructing Civil Rights InvestigationRead the Press Release
Former Police of Puerto Rico Officer Angel Torres Quinones was sentenced today to serve 46 months in prison for obstructing the civil rights investigation into the fatal beating of Jose Luis Irizarry Perez, 19, announced Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-Velez for the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.
Torres Quinones pleaded guilty to obstruction of justice for providing misleading information to the local Puerto Rico prosecutor who initially investigated the police-involved beating of Irizarry Perez. Five other former Puerto Rico police officers, who also pleaded guilty, are currently awaiting sentencing for their roles in the beating of Irizarry Perez and subsequent obstruction of the investigation. According to documents filed in connection with the guilty pleas, two former Puerto Rico police officers violated the constitutional rights of Irizarry Perez by striking him with their police batons while another former police officer physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.
U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by three years of supervised release. During the three-year term, the defendant will be under federal supervision, and risks additional prison time should he violate any terms of his supervised release.
“The department will continue to ensure that those who cover up civil rights violations are brought to justice,” said Acting Assistant Attorney General Gupta. “Like an officer who unnecessarily uses excessive force, a police officer who obstructs a civil rights investigation violates his oath to the people he serves.”
“Today’s sentencing brings a measure of justice to the family of Jose Luis Irizarry Perez,” said U.S. Attorney Rodriguez-Vélez. “The U.S. Attorney’s Office and its law enforcement partners will hold accountable those who abuse their power and official positions at the expense of constitutionally guaranteed civil rights.”
This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras for the District of Puerto Rico.
Former Prison Doctor Pleads Guilty to Schemes to Defraud the GovernmentRead the Press Release
PHILADELPHIA - Dennis Erik Fluck Von Kiel, 58, of New Tripoli, PA, pleaded guilty today to 17 counts stemming from his schemes to: defraud the IRS and the Department of Health and Human Services out of hundreds of thousands of dollars, get financial aid grants for his four eldest children, file false claims for social security disability insurance, and lie at a bankruptcy proceeding. Von Kiel is the former medical director of Lehigh County Prison. He pleaded guilty to conspiracy to defraud the United States, five counts of attempting to defeat or evade a federal tax, one count of attempting to obstruct the due administration of the internal revenue code, five counts of failure to file tax returns, one count of wire fraud and aiding and abetting wire fraud, one count of perjury in a bankruptcy proceeding, one count of financial aid fraud and aiding and abetting financial aid fraud, and two counts of mail fraud and attempted mail fraud. The plea agreement recommends a 41-month prison term. U.S. District Court Judge Jeffrey L. Schmehl will make the final determination on sentencing at a hearing scheduled for April 20, 2015.
Since 2001, Von Kiel has engaged in a series of illegal schemes which were designed to help him evade creditors, including the Department of Health and Human Services to whom Von Kiel owed hundreds of thousands of dollars in outstanding medical school loans. He tried to defraud the IRS in order to avoid paying more than $200,000 in duly-owed personal income taxes. Von Kiel also lied on applications to the Department of Education for financial student aid for four of his children, which enabled them to receive more than $36,000 in federal Pell Grants for their college educations. Von Kiel tried to file a fraudulent claim for social security disability benefits by falsely claiming that he suffered from post-traumatic stress disorder. He also intentional made a false statement under oath in a bankruptcy proceeding.
Von Kiel is a doctor of osteopathy whose medical practice included treating inmates at LCP from approximately March 1989 until approximately August 2013. Most of Von Kiel’s schemes involved him pretending to become a minister of a “church” called the International Academy of Lymphology (which later changed its name to the International Academy of Life and then the Christian Forum Assembly), purporting to take a “vow of poverty,” and then claiming that he had no taxable income because his earnings belonged to “church.” Von Kiel convinced his employer that he was exempt from federal tax withholdings and directed his employer to deposit his bi-weekly paychecks into bank accounts for his “church.” Once the money arrived in those accounts, co-conspirators would transfer nearly the same amount of money into Pennsylvania bank accounts controlled by Von Kiel. Von Kiel then used the money to pay for all of his family’s day-to-day living expenses and to buy some luxury items.
Von Kiel has been held without bail at the Federal Detention Center since his arrest on February 28, 2014. Von Kiel also faces up to three years of supervised release, restitution to the IRS in the amount of $256,920, $262,303.11 to the Department of Health and Human Services and $36,314 to the Department of Education, forfeiture of $165,988.29, a fine of up to $2,895,000, and a $1,700 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations, the FBI, and the Department of Education’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Former Insurance Agent Sentenced for Stealing from His ClientsRead the Press Release
WICHITA, KAN. - A former insurance agent in Wichita was sentenced Monday to 42 months in federal prison for stealing from his clients, U.S. Attorney Barry Grissom said.
Jason Matthew Pennington, 43, Wichita, Kan., pleaded guilty to two counts of wire fraud and one count of attempted bank fraud. In his plea, he admitted the crimes occurred while he was an agent working for State Farm Insurance.
WIRE FRAUD (Count Two)
In 2000, Wendell and Marita Hill, who had purchased insurance policies from State Farm, became clients of Pennington after their former State Farm agent retired. In Nov. 2004, the Hills purchased a life insurance policy through Pennington valued at more than $3.4 million. The policy was issued by Phoenix Life Insurance Company, an insurance provider affiliated with State Farm Insurance.
In 2008, Pennington devised a scheme to defraud the Hills and Phoenix. On Feb. 29, 2008, he sent a fax to Phoenix Life Insurance Company requesting a loan of $105,000 on the Hills’ life insurance policy. The loan contained the forged signature of Brent Hill, who was trustee of the Hill Family Trust. Brent Hill did not make the request for the loan.
WIRE FRAUD: (Count Four)
In 2006, Marlene Brown, who had retired following a 37-year career with the Wichita Public Schools as a teacher, coach and school administrator, purchased a State Farm life insurance policy through Pennington. The policy was valued at $1.3 million.
In September 2009, Pennington contacted State Farm and changed the address for Marlene Brown’s insurance policy to his business address. He then sent a fax to State Farm making a withdrawal of $278,250 on the policy. Pennington forged Brown’s signature and requested the withdrawal without her knowledge.
When State Farm called him to ask why the money was to be sent to his office instead of Brown’s home, Pennington lied and told them Brown was his mother-in-law.
Marlene Brown died Oct. 27, 2009.
ATTEMPTED BANK FRAUD: (Count 45)
In February 2010, Pennington applied for a line of credit from State Farm Bank. In order to qualify for the credit, he did not report to the bank that he was required to pay $5,000 a month in child support and alimony to his first wife. He also falsely reported that his second wife was receiving an annual salary as an employee of his insurance office.
Grissom commended the FBI, IRS - Criminal Investigation Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.
Former Fort Rucker Soldier Sentenced to Six Years in Daughter’s DeathRead the Press Release
Montgomery, Alabama - Benjamin Schrad, a former soldier stationed at Fort Rucker, was sentenced Friday, January 9, 2015, to six years in prison for manslaughter. Schrad’s sentence follows his conviction in federal court for the 2011 death of his four-year old daughter.
The sentence was announced by United States Attorney for the Middle District of Alabama, George L. Beck, Jr., who noted that the sentence was above the recommended sentencing range of 33-41 months set out in the Federal Sentencing Guidelines.
Schrad, 31, from Storm Lake, Iowa, was stationed and living in base housing at Fort Rucker when he rushed his daughter to an emergency room in Enterprise in August 2011, advising doctors that she had collapsed while they were playing at home. However, medical testimony at the trial established that the girl was violently shaken and that the injuries that caused her death could not have resulted from a mere fall.
“The U. S. Attorney’s Office is grateful that the judge in this case upwardly departed from the guidelines and sentenced the offender to 72 months,” stated U.S. Attorney George Beck. “This is a heartbreaking case involving the death of a child, and it is unfortunate that the Federal Sentencing Guidelines only allow for such a narrow sentencing range. A review of the current guidelines by the Sentencing Commission would be welcomed, followed by revisions that would ensure that the level of punishment could more adequately reflect the devastating nature of the crime.”
This case was investigated by the Federal Bureau of Investigation (FBI), the Army Criminal Investigative Division at Fort Rucker, and the Alabama Department of Forensic Sciences. The Birmingham Children’s Hospital also provided assistance in the investigation and trial of this case. This case was prosecuted by Assistant United States Attorneys Susan Redmond and Bob Anderson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Albany Resident Charged with Possessing Child PornographyRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Konrad P. Wolff, on Dec. 18, 2014, with one count of possessing child pornography, announced United States Attorney Melinda Haag and Federal Bureau of Investigation, Special Agent in Charge David J. Johnson.
According to the indictment, Wolff, 27, previously of Albany, Calif., is alleged to have knowingly possessed video and image files depicting minor and prepubescent children engaging in sexually explicit conduct. Wolff was arrested on Jan. 8, 2015, at Ft. Benning, Georgia, and made his initial appearance in federal court in Columbus, Ga., that same day. Wolff has been remanded to the custody of the U.S. Marshals Service and will be returned to the Northern District of California to answer the Indictment. His next appearance will be before the Honorable James Donato, United States District Court Judge, at a time to be determined.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison and a fine of $250,000, for his alleged violation of 18 U.S.C. § 2252(a)(4)(B). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Scott D. Joiner is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by the FBI and the University of California, Berkeley, Police Department.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the January 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.Roy James Hudson. Felon in Possession of Firearm and Ammunition, Possession of an Unregistered Weapon Made from a Shotgun, and Possession of an Unregistered Weapon Made from a Rifle. Hudson, 28, of Pryor, Oklahoma, is charged with possessing 13 firearms and various rounds of ammunition after prior felony convictions. The firearms include unregistered short-barreled weapons made from a shotgun and a rifle. If convicted, the minimum statutory penalty for possession of the firearms and ammunition after felony convictions is 15 years in prison and the maximum statutory penalty is life in prison. If convicted, the maximum penalty for possessing unregistered short-barreled weapons made from a shotgun and a rifle is 10 years in prison. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mayes County Sheriff’s Office, and the Pryor Police Department are the investigative agencies.
Mario Jimenez-Ramirez. Reentry of Removed Alien. Jimenez-Ramirez, 36, was arrested and is charged with having returned to the United States unlawfully after being deported in February 2009 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigating agency.
Rene Marmolejo-Rodriguez. Reentry of Removed Alien. Marmolejo-Rodriguez, 32, was arrested and is charged with having returned to the United States unlawfully after being deported in November 2009 near San Ysidro, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigating agency.
Kelly Verd Nichols. Mail Fraud and Unlawful Monetary Transactions. Nichols, 46, of Sapulpa, Oklahoma, is charged with two counts of mail fraud and four counts of unlawful money transactions occurring between December 2009 and June 2010. If convicted, the statutory maximum penalty is not more than 20 years in prison for mail fraud and not more than 10 years in prison for unlawful monetary transactions. The indictment also contains forfeiture allegations which provide notice to the defendant that upon conviction he also faces entry of a forfeiture money judgment in the amount of $267,000. The Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation are the investigating agencies.
Beto Romero-Lozada. Reentry of Removed Alien. Romero-Lozada, 43, was arrested and is charged with having returned to the United States unlawfully after being deported in April 2007 near San Ysidro, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigating agency.
Jacob Dane Young and Jamie Lee King. Drug Conspiracy, Possession of Marijuana with Intent to Distribute and Possession of Firearms in Furtherance of a Drug Trafficking Crime. Young, 24, and King, 23, both of Tulsa, are charged with possessing marijuana with intent to distribute and conspiring to distribute marijuana. Upon conviction, the defendants face entry of a criminal forfeiture money judgment representing proceeds obtained as a result of the drug conspiracy and any property used to facilitate the drug offenses. Both defendants are also charged with possessing 15 firearms in furtherance of a drug trafficking crime. King is additionally charged with possessing a machine gun in furtherance of a drug trafficking crime. If convicted, the statutory maximum penalty for possessing marijuana with intent to distribute and conspiracy is five years in prison. If convicted, the statutory minimum penalty for possessing firearms in furtherance of a drug trafficking crime is five years in prison and the statutory maximum penalty is life in prison. If convicted, the statutory minimum penalty for possessing a machine gun in furtherance of a drug trafficking crime is 30 years in prison and the statutory maximum penalty is life in prison. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Father and Son Plead 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 Gregory Magness, 66, of Polk, PA, pleaded guilty to conspiracy to smuggle and conspiracy to commit money laundering before Chief U.S. District Judge William M. Skretny. The charges carry a maximum penalty of 10 years, and a $250,000 fine. In addition, Magness’ son Justin, 36, of Oil City, PA, pleaded guilty to aiding and abetting in the presentation of a false document to Custom and Border Protection officers. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated the Gregory Mangess was the president of Superior Metal Powders, Inc. and Justin Magness served as vice-president. The company was in the business of supplying specialty metal powders which included magnesium and magnesium reagent. Between 2003 and 2006, Superior Metal Powders had an agreement to provide the ESM Group Inc. with pure magnesium powder. ESM then sold the magnesium powder to Kilgore Flares Inc. which used the magnesium to produce countermeasure flares for the United States Department of Defense.
Gregory and Justin Magness bought the magnesium that was supplied to ESM from William Nehill which was imported from China. At the time of the importations, the United States had a 305.56% antidumping duty in place with respect to the type of magnesium powder the defendants were importing through Nehill. In order to avoid the antidumping duty, the defendants mixed the pure magnesium with chunks of aluminum and falsely labeled it as magnesium reagent. By doing so, the duty imposed on the shipments was only 5%. The mislabeling resulted in a $6,000,000 duty loss to the United States. During one such import in 2004, Justin Magness aided William Nehill in preparing false documents that were provided to and relied on by customs resulting in a lower duty cost.
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. Gregory and Justin Magness, as well as defendants Nehill and Wright have all been convicted. Charges are pending against Eldon Bott. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The pleas are 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, Acting 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.
Gregory and Justin Magness will be sentenced on May 13, 2015 at 9:00 a.m. by Judge Skretny.
Eight sentenced for trafficking heroin, other drugsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistEight sentenced for trafficking heroin, other drugs
MARTINSBURG, WEST VIRGINIA – Eight individuals were sentenced in federal court today for distributing heroin and other drugs, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Federal Bureau of Investigation, the Potomac Highlands Drug and Violent Crimes Task Force, and Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, revealed a drug distribution network in which heroin transported from Baltimore, Maryland and oxycodone were sold within the Northern District of West Virginia. Six individuals were sentenced for their role in the drug trafficking operation, including:
• Stephanie Lee Butts, 38, of Petersburg, West Virginia, was sentenced to 115 months in prison after she was discovered in possession of heroin in January 2014. She pled guilty in September 2014 to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.”
• Christian Nicole Pierce, 22, was sentenced to 46 months in prison for her role in selling heroin as part of the larger distribution network. She pled guilty in September 2014 to one count of “Drug Conspiracy – Heroin.”
• Brenda Michelle Sams, 35, of Brandywine, Maryland was sentenced to 21 months in prison for her role in selling heroin as part of the larger distribution network. She pled guilty in October 2014 to one count of “Drug Conspiracy – Heroin.”
• Brandy Netz, 30, of Martinsburg, West Virginia, was sentenced to 10 months in prison for selling heroin in April 2014. She pled guilty in October 2014 to one count of “Aiding and Abetting Distribution of Heroin.”
• Crystalin Nicole Holliday, 24, of Martinsburg, West Virginia was sentenced to three years of probation months in prison for selling heroin in April 2014. She pled guilty in September 2014 to one count of “Aiding and Abetting Distribution of Heroin.”
• Thomas Richard Greenfield, Jr., 58, of Martinsburg, West Virginia, was sentenced to three years of probation for selling oxycodone in April 2014. He pled guilty in September 2014 to one count of “Aiding and Abetting Distribution of Oxycodone.”In another matter, Derwin Lee Harris, 48, of Harrisburg, Pennsylvania, was sentenced to 12 months in prison for his role in a conspiracy to distribute heroin and cocaine in July 2013. He pled guilty in October 2014 to one count of “Drug Conspiracy” following an investigation by the Martinsburg Police Department.
Additionally, Darrell Sherwood Logan, 57, of Martinsburg, West Virginia, was sentenced to time served since September 2014 for selling crack cocaine. He pled guilty in September 2014 to one count of “Aiding and Abetting Distribution of Cocaine Base” following an investigation by the Eastern Panhandle Drug and Violent Crimes Task Force.
Assistant U.S. Attorney Jarod Douglas prosecuted the cases on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Doctor and Pharmacist Charged Distributing 1.6 Million Doses of OxycodoneRead the Press Release
HOUSTON – Richard Arthur Evans, M.D., 70, and David D. Devido, R.Ph., 76, both of Houston, have been charged in a 24-count indictment alleging a conspiracy to commit distribution of controlled substances, mail fraud, health care fraud and money laundering, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Joseph Arabit of the Drug Enforcement Administration (DEA) and Special Agent in Charge Lucy Cruz of Internal Revenue Service – Criminal Investigation (IRS-CI).
The indictment was returned under seal Wednesday, Jan. 7, 2015. Both men surrendered to federal authorities this morning at which time the indictment was unsealed.
Evans and Devido are charged with conspiring to distribute the prescription drugs oxycodone and hydrocodone, both highly addictive and highly abused pain relievers. Both drugs are semi-synthetic opiates which can be only acquired legally by prescription and dispensed by a pharmacist. As a physician, Evans wrote prescriptions and Devido dispensed the drugs, according to the indictment.
The indictment alleges both men distributed these drugs outside the course of professional practice and not for a legitimate medical purpose. Evans allegedly saw patients from Louisiana and other states, prescribed oxycodone products and directed patients to Briargrove Pharmacy in Houston. Devido had previously owned the pharmacy until it was sold recently.
The indictment further alleges Evans charged patients $200-$240 in cash for an initial office visit at which time the patient would obtain their first prescription. Refills are not permitted for these narcotics. Patients were allegedly told they could obtain a second prescription in 30 days without an office visit and a third in another 30 days as long as the patient sent a money order to Evans for $200-$240 on each occasion for “office visits.”
The indictment alleges Evans and his staff would deliver the prescription to Devido at Briargrove Pharmacy. Devido and his staff at Briargrove Pharmacy would allegedly send these drugs through the U.S. mail and FedEx to patients in Louisiana and other states.
The indictment alleges Evans prescribed and Devido dispensed approximately 1.6 million dosage units of oxycodone in a three-year-period.
Both defendants are charged with one count of conspiracy to distribute narcotics which carries a maximum penalty of five years in federal prison. They also face six counts of distribution of controlled substances and eight counts of mail fraud, all of which carry a possible 20-year-prison term. Devido is also charged with four counts of health care fraud and faces another 20 years for each conviction, while Evans faces five counts of money laundering, each carrying another 10 years of federal imprisonment. All charges also carry a possible $250,000 fine, upon conviction.
The investigation was conducted jointly by the DEA, IRS-CI, U.S. Postal Inspection Service, U.S. Department of Health and Human Services and the Texas State Board of Pharmacy. Assistant U.S. Attorney Cedric L. Joubert is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Detroit man sentenced for felony possession of firearm, supervised release revocationRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Keival Lewis Kelley, also known as “Swell,” 31, of Huntington, West Virginia, was sentenced to 70 months in federal prison for being a felon in possession of a firearm and 24 months for a supervised release revocation.
Kelley pleaded guilty in December 2014, to being a felon in possession of a firearm.
On July 2, 2014, Kelley was arrested in Huntington on a federal warrant for heroin trafficking. At the time of his arrest he was found to be in possession of a loaded Taurus .25-caliber semi-automatic pistol. He had previously been convicted of crack distribution in the Southern District of West Virginia, and was serving a term of supervised release when arrested.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The investigation was conducted by the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Joshua Hanks handled the prosecution of this case.
The case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a commitment of U.S. Attorney Goodwin’s office and other officials nationwide to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Davidsonville Man Sentenced to 8 Years in Prison for Distributing Heroin and Oxycodone and Illegally Possessing A Pipe BombRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Benjamin K. Bray, age 30, of Davidsonville, Maryland, to eight years in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to being a felon in possession of an explosive device.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief Marc S. Bashoor of the Prince George’s County Fire/EMS.
According to his plea agreement, from at least January 2011 through December 2012, Bray conspired with John Frank Jenkins and others to distribute oxycodone. Bray and his co-conspirators presented forged prescriptions for oxycodone pills to different pharmacies approximately twice a week from the spring of 2011 through the summer of 2012. Bray and his co-conspirators consumed some of the pills and sold the rest. During the conspiracy, Bray began to use and distribute heroin as a cheaper substitute for the oxycodone, selling heroin to pay for the heroin he used.In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs which he intended to use to blow up the drug customer’s vehicle. Bray supplied the black powder for the pipe bombs.
Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied in June 2012. On December 18, 2012, Bray and Jenkins were out of heroin and needed money to purchase heroin. Jenkins contacted the customer, but could not collect the debt. Bray and Jenkins carried one of the pipe bombs to the customer’s home. Bray placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.
John Frank Jenkins, age 31, of College Park, Maryland was previously sentenced to 121 months in prison followed by 14 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and oxycodone; and to 10 years in prison for making an explosive device and being a felon in possession of an explosive device. The sentences are to be served concurrently. Judge Grimm also ordered Jenkins to pay restitution of $475.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Connecticut Investment Advisor Sentenced to 40 Months in Federal Prison for Cherry-picking SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NOAH L. MYERS, 43, of Lyme, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 40 months of imprisonment, followed by three years of supervised release, for defrauding investment clients in a “cherry-picking” securities scheme. MYERS also was ordered to perform 150 hours of community service.
“Investors have a right to the fair and ethical management of their savings,” stated U.S. Attorney Daly. “The sentence imposed today serves as ample warning that money managers who breach their clients trust in violation of federal securities laws will be prosecuted and risk losing their freedom and ill-gotten gains. We thank the FBI and the SEC for their efforts in uncovering this cherry-picking scheme.”
“Cherry-picking” is a fraudulent securities trading practice in which the responsible individual executes trades without assigning those trades to a particular trading account until the individual determines whether or not the trade has become profitable or suffered losses. The responsible individual then allocates the profitable trades to favored accounts – often the individual’s own account – and assigns unprofitable trades to disfavored client accounts.
According to court documents and statements made in court, MYERS was the sole owner of MiddleCove Capital, LLC (“MiddleCove”), a Connecticut limited liability company with its principal place of business in the Centerbrook section of Essex. MiddleCove had been registered with the U.S. Securities and Exchange Commission (“SEC”) as an investment adviser since 2008, and MYERS was the portfolio manager and managed a number of client accounts with assets of approximately $129 million. MiddleCove used Charles Schwab & Co., Inc. (“Schwab”) to trade securities and as the custodian of the investments held in client accounts. As part of the trading arrangement with Schwab, MYERS was permitted to place block purchases and sales of securities through a master account with Schwab and then, later in the day, allocate the purchases and sales to various accounts, including his personal accounts and various client accounts, all held by Schwab.
Between April 2009 and November 2010, MYERS engaged in “cherry-picking” at MiddleCove by purchasing the leveraged exchange traded fund (ETF) ProShares UltraShort Financials, otherwise known by its ticker symbol “SKF,” as well as other securities. MYERS then disproportionately allocated trades that had appreciated in value during the course of the day to his personal and business accounts and allocated trades that had depreciated in value during the day to the accounts of his advisory clients. As a result, MYERS gained as his clients suffered commensurate trading losses.
For example, in August 2009, on the nine days when MYERS purchased SKF in block trades in the master account and the security was sold as a day trade, MYERS allocated between 9 percent and 32 percent of the profitable block trades to his personal accounts. On three of those days he allocated between 27 percent and 31 percent of the profitable day trades to his personal accounts.
In addition, on September 2, 2009, MYERS purchased SKF in a block trade in the master account and, after the investment increased in value, sold the shares in a day trade and allocated more than 31 percent of the investment to his personal accounts. In sharp contrast, MYERS undertook four additional block purchases in the master account of SKF on September 3, 4, 16 and 28, 2009. On each of these days, when the SKF investment declined in value by the close of trading, MYERS allocated no more than 5 percent of the block trade to his personal accounts and instead allocated the remaining 95 percent of the shares to his clients’ accounts.
In filings with the SEC in April 2009 and March 2010, MYERS and MiddleCove represented that batched trades would be allocated fairly and not unduly favor MYERS or MiddleCove.
On January 16, 2013, the SEC issued an order revoking the registration of MiddleCove as an investment adviser and barred MYERS from the securities industry. MYERS also was ordered to pay $462,022 disgorgement, $26,096 in prejudgment interest, and a civil penalty of $300,000.
On October 20, 2014, MYERS waived his right to indictment and pleaded guilty to one count of security fraud.
This matter was investigated by the Federal Bureau of Investigation with the substantial assistance of the U.S. Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Citizens of Benin, Africa Sentenced to Time Served for Fraud Related ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that the Honorable Laurie Smith Camp, Chief United States District Court Judge sentenced Cossi Deguenon and Micheline Bolarywa to time served after they pled guilty to fraud related charges.
Cossi Deguenon and Micheline Bolarywa are citizens of Benin, Africa and had come to the United States on student visas. Deguenon came in 2006 and Bolarywa came in 2008. Deguenon married a United States Citizen in 2011 and subsequent to that marriage he applied for a green card based on his new status as the spouse of a citizen. When United States Citizen and Immigration Services processed his application they determined the marriage was entered into fraudulently and was a sham. In fact, in 2009, Cossi Deguenon and Micheline Bolarywa applied for and received a marriage license in Douglas County. Federal agents served a search warrant at Deguenon’s residence and found wedding pictures of Cossi Deguenon and Micheline Bolarywa from 2009. During the investigation it was learned that Micheline Bolarywa had been employed at Remington Lodging and Hospitality, a Marriott Corporation, and that when she applied for the job, affirmed that she was a United States citizen when in fact she wasn’t.
Cossi Deguenon pled guilty to marriage fraud and served 9 days in jail. Micheline Bolarywa pled guilty to making a false statement under oath and served 6 days. Both Cossi Deguenon and Micheline Bolarywa are being deported to Benin.
The case was investigated by the United States Citizen and Immigration and Services and Homeland Security Investigations.
Chief Compliance Officer of WG Trading Company, LP, Sentenced in Manhattan Federal Court for Several Hundred Million-Dollar Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DEBORAH DUFFY, the former Chief Compliance Officer of WG Trading Company, LP (“WG Trading”), was sentenced in Manhattan federal court to time served in prison for conspiracy, securities fraud, and money laundering. DUFFY maintained the books and records for WG Trading, a fraudulent commodities trading and investment advisory scheme run by principals Stephen Walsh and Paul Greenwood, which raised billions of dollars, misappropriated hundreds of millions of those dollars for their own personal benefit, and then created false promissory notes and account statements to conceal their theft. DUFFY pled guilty on July 21, 2009, and was sentenced on January 8, 2015, by United States District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara said: “Deborah Duffy abdicated her oversight responsibility at WG Trading, enabling Walsh and Greenwood to perpetuate their massive investment fraud scheme. But she not only admitted her conduct, she assisted the government’s investigation. Her sentence today reflects both her acknowledgment of her guilt and the value of her cooperation.”
According to the Information, other documents filed in Manhattan federal court, and statements made during court proceedings:
From at least 1996 through February 2009, Walsh and Greenwood solicited $7.6 billion in investor funds on the understanding that they would invest the funds in a program called “equity index arbitrage,” which they represented was a conservative trading strategy that had outperformed the results of the S&P 500 Index for more than ten years. As a result, several institutional investors – including charitable and university foundations, retirement and pension plans, and other institutions – invested billions of dollars. Contrary to their representations to investors, Walsh and Greenwood misappropriated hundreds of millions of dollars in investor funds for their own personal use and to satisfy obligations on investments that were unrelated to the “equity index arbitrage” trading business. Walsh and Greenwood executed promissory notes to, among other things, conceal trading losses and their misappropriation of investor funds. These promissory notes totaled approximately $554 million, and these notes materially misstated the financial condition of WG Trading and misled investors. Walsh and Greenwood also created and caused others to create false account statements that were sent to clients to reflect fictitious returns consistent with the returns that had been promised to those clients.
During this time period, DUFFY was the Chief Compliance Officer of WG Trading. Among other duties, she maintained the books and records of WG Trading, communicated with WG Trading’s regulators and auditors, and prepared and maintained the promissory notes signed by Walsh and Greenwood.
In addition time served, DUFFY, 59, of Mahwah, New Jersey, was sentenced to one year of supervised release and ordered to forfeit $1,272,841. The Court further ordered restitution to be paid by DUFFY in an amount to be determined.
Walsh pled guilty on April 25, 2014, and was sentenced on October 29, 2014, by United States District Judge Miriam Goldman Cedarbaum to 20 years in prison. Greenwood pled guilty on July 28, 2010, and was sentenced on December 3, 2014, by Judge Cedarbaum to 10 years in prison.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Securities and Exchange Commission, the United States Commodity Futures Trading Commission, and the National Futures Association, for their assistance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jessica A. Masella is in charge of the prosecution.
Chesapeake Woman Sentenced for Conspiracy to Commit Wire Fraud and Identity TheftRead the Press Release
NORFOLK, Va. – Shavika Thompson, age 36, of Chesapeake was sentenced yesterday to 41 months in prison for conspiracy to commit wire fraud and a consecutive sentence of 24 months for aggravated identity theft. Thompson was also ordered to pay restitution in the amount of $99,875.97.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.
Thompson pled guilty to the charge on September 4, 2014. According to court documents, Thompson and co-conspirator, Sheila Clark Lewis, acquired identity information without authorization from Thompson’s employer, a telephone messaging service that catered to medical offices. In many cases, they used the information to establish store credit card accounts at K-Mart, Sears, and Kohl’s department stores. At various times between November 2012 and September 2013, they made purchases using the victims’ accounts. The identity victims included elderly medical patients. Surveillance videos showed that Thompson and Lewis were often together at the time of a purchase or attempted purchase. Over the course of about one year, they purchased or attempted to purchase nearly $100,000 in merchandise. Both defendants were under supervised release during the time of the offenses. Both had been previously prosecuted by the Norfolk office.
This case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Randy Stoker prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-88.Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: BARBARA BURNS
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BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Gregory Pendziwiatr, 46, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute fentanyl, was sentenced to 15 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that Pendziwiatr and co-defendant Mary Moran sold prescription fentanyl patches to another co-defendant, Barbara Moran. Co-defendant Barbara Moran sold the fentanyl patches to others in the City of Buffalo including a third co-defendant Jordan Warunek.
Jordan Warunek and Mary Moran were also convicted of conspiracy to possess with intent to distribute and distribute fentanyl and were sentenced to two years probation and one year in prison respectively. Barbara Moran will be sentenced by Judge Arcara on February 2, 2105.
“Narcotics which are trafficked illegally do not always originate from outside the country, or Western New York,” said U.S. Attorney Hochul. “Sometimes, persons with valid medical prescriptions choose to become nothing more than neighborhood drug dealers by selling that which a doctor intended for their benefit. This Office will prosecute any who would poison the community by trafficking in addictive or deadly substances such as fentanyl, regardless of how the person acquires the product.”
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zach.
Brian Murphy Sentenced to 45 Months in Prison for Conspiracy to Commit Mail and Wire Fraud Through Benchmark Capital Ponzi SchemeRead the Press Release
KNOXVILLE, Tenn. - Brian Murphy, 43, of Knoxville, Tenn., was sentenced on January 8, 2015, to serve 45 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge. Murphy was also ordered to pay $18 million in restitution to the victims in the case.
Murphy pleaded guilty in August 2014, to a federal indictment charging him with conspiracy to commit mail and wire fraud. The indictment arose out of Murphy’s participation with Joyce Allen and the late Charles Candler in the operation of a business known as Benchmark Capital, which was discovered to be a Ponzi scheme that financially ruined many of its hundreds of victims. Candler, Allen, Murphy and others vouched for the soundness of investment annuities they sold when in fact they were worthless.
The indictment and subsequent conviction of Murphy was the result of a three-year investigation conducted by the Internal Revenue Service, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant U.S. Attorneys Frank Dale and Jennifer Kolman represented the United States.
Bedford County Man Pleads Guilty to Trafficking in Counterfeit Pro Sports Team ApparelRead the Press Release
JOHNSTOWN, Pa. - A resident of Everett, Pa., pleaded guilty in federal court to a charge of trafficking in counterfeit goods, United States Attorney David J. Hickton announced today.
John F. Crawford, IV, 48, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Oct. 25, 2012, Crawford trafficked in various counterfeit National Football League, National Hockey League and Major League Baseball logo apparel.
Judge Gibson scheduled sentencing for May 12, 2015, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Crawford on $5,000 bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security-Homeland Security Investigations conducted the investigation that led to the prosecution of Crawford.
Bank Employee Sentenced to Federal Prison for Embezzling More Than $450,000Read the Press Release
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Deirdre M, Daly, United States Attorney for the District of Connecticut, announced that MARIA ROSA ESTEVES, 41, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 12 months and one day of imprisonment, followed by six months of home confinement and three years of supervised release, for embezzling more than $450,000 from the bank where she was employed. ESTEVES also was ordered to pay full restitution, and to perform 60 hours of community service during her term of supervised release.
According to court documents and statements made in court, ESTEVES was employed by People’s United Bank from 1993 to 2014. Beginning in 2006, ESTEVES worked primarily in the bank’s Adjustments Department, ultimately holding the title of Lead Adjuster with responsibilities that included arranging for bank cashiers’ checks to be issued to customers when a customer’s account needed to be adjusted. ESTEVES used her position in the Adjustments Department to embezzle $452.122.08 from the bank by causing the bank to issue cashiers’ checks that ESTEVES would then use to pay persons or entities that she owed money to, including her utility company, homeowner’s insurance company and mortgage providers. ESTEVES also embezzled money by depositing cashiers’ checks into bank accounts she controlled and from which she, or others associated with her, were able to access the funds. In total, ESTEVES misappropriated more than 300 cashiers’ checks.
ESTEVES was ordered to report to prison on March 2, 2015.
On August 14, 2014, ESTEVES pleaded guilty to one count of embezzlement from a federally insured bank.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by Senior Litigation Counsel Richard J. Schechter.
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[email protected]Antioch Woman Charged with Fraudulently Obtaining CitizenshipRead the Press Release
SAN JOSE – Vivian Chike Obichere was arraigned on Friday, Jan. 9, 2015, on charges of making false statements in passport applications, unlawfully obtaining naturalization, and committing perjury in two interviews concerning her application for citizenship, announced United States Attorney Melinda Haag and Special Agent in Charge David Zebley of the U.S. Department of State, Diplomatic Security Service.
A federal grand jury in San Francisco indicted Obichere, 61, of Antioch, on Jan. 6, 2015. According to the indictment, Obichere submitted a fraudulent passport application using the identity of a deceased American citizen. The indictment also alleges that Obichere lied about her use of the false identity in her application to become a naturalized American citizen, which she filed in her own identity, and in the interviews concerning her naturalization application. As a result of those lies, Obichere’s application for American citizenship was granted. According to the indictment, Obichere also lied about her use of the false identity in a subsequent passport application submitted in her own identity after becoming a citizen.
Obichere was arrested at her home early Friday morning and made her initial appearance in federal court in San Jose that afternoon. Obichere was released on bond. Bail was set at $50,000. Obichere’s next scheduled appearance is at 1:30 p.m. on Feb. 9, 2015, before the Honorable Edward J. Davila, United States District Court Judge.
An indictment merely alleges that crimes have been committed, and defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of ten years imprisonment, and a fine of $250,000, for each violation of 18 U.S.C. §§ 1542 (false statement in application for a passport) and 1425(b) (unlawful naturalization), and a maximum sentence of five years imprisonment, and a fine of $250,000, for each violation of 18 U.S.C. § 1621 (perjury). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rita F. Lin is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of an investigation led by the U.S. Department of State Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF) overseen by U.S. Immigration and Customs Enforcement Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Antioch Resident Sentenced to 30-Months in Custody for Aggravated Identity Theft in Tax Fraud SchemeRead the Press Release
OAKLAND – Starkisha Benson was sentenced to 30 months in prison on Friday, Jan. 9, 2015, for conspiring to file false claims and aggravated identity theft, United States Attorney Melinda Haag and IRS-CI Internal Revenue Service – Criminal Investigation Division Special Agent in Charge José M. Martinez, announced.
Benson pleaded guilty on Oct. 3, 2014. According to her plea agreement, Benson filed false tax returns from her residence and from other locations along with her co-conspirators. Bensons admitted that she filed these false tax returns using stolen identities. Benson specifically acknowledged that she stole one person’s identity and used that information to file false 2009 and 2010 tax returns. Benson also misused the identity of that same person’s minor child. Benson further acknowledged embezzling fraudulent tax refunds from the Internal Revenue Service and keeping the money for her own use. In addition to the prison sentence, Benson was ordered to pay restitution in the amount of $98,927.
The charges against Benson were the result of an investigation initiated by the Berkeley Police Department. On April 7, 2011, during a consent search of a vehicle, the Berkeley Police Department uncovered a notebook with co-defendant Khyber Law’s name on the cover. The notebook contained the identity profiles of eleven people including their names, dates of birth, bank account numbers, bank routing numbers, email addresses, and passwords. Eight of these eleven identity profiles were used to file false federal income tax returns.
Benson, 36, of Antioch, was charged with Khyber Law and Jessika Green in a twenty-four count superseding indictment on Dec. 17, 2013. The defendants were all charged with wire fraud, conspiracy to file false claims, filing false claims, effecting fraudulent transactions with an access device, theft of public money, and aggravated identity theft. Law and Green each pleaded guilty to conspiracy to file false claims. Law, 26, of Antioch is scheduled to be sentenced on Jan. 30, 2015. Green, 33, also of Antioch, is scheduled to be sentenced on Feb. 20, 2015.
The sentence was handed down by the Honorable Jon S. Tigar, United States District Court Judge. Judge Tigar also sentenced the defendant to a three year period of supervised release and restitution. The defendant will begin serving the sentence on March 6, 2015.
Assistant U.S. Attorney Thomas Newman and Special Assistant U.S. Attorney Kate Patchen and are prosecuting the case. The prosecution is the result of an investigation by the Berkeley Police Department and the IRS, Criminal Investigation Division.
Another Member of Large Scale Pensacola Cocaine Trafficking Organization Sentenced to Federal PrisonRead the Press Release
PENSACOLA, FLORIDA – Victor D. Rome, 39, from the Pensacola area, was sentenced in federal court today on drug trafficking conspiracy charges. Rome was sentenced by Chief United States District Judge M. Casey Rodgers to 280 months’ imprisonment and 10 years of supervision upon his release. The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Rome’s indictment was part of a continuing investigation into a large scale distribution network that involved the transportation of cocaine from Texas into the Northern District of Florida. Rome’s co-conspirators Coneil T. Wilkins and Ricky L. Blankenship were sentenced last year. On February 13, 2014, Wilkins was sentenced by Senior United States District Judge Lacey A. Collier to 35 years in federal prison for his role in the distribution of approximately $20 million worth of cocaine in Pensacola. On May 15, 2014, Blankenship was sentenced by Judge Collier to life imprisonment for related drug trafficking offenses.
United States Attorney Marsh praised the work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Escambia County Sheriff’s Office, the Pensacola Police Department, and the State Attorney's Office for the 1st Judicial Circuit, whose joint investigation led to the indictments in these cases.
The cases were prosecuted by Assistant United States Attorney David L. Goldberg.
“I commend our federal, state, and local law enforcement partners for their commitment to public service and community safety,” said United States Attorney Marsh. “This teamwork has resulted in the dismantling of a multi-year criminal conspiracy and demonstrates how the collaboration of all levels of government helps to protect the Northern District of Florida from dangerous drugs.”
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. The office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Andover Man Pleads Guilty to Mishandling ChemicalsRead the Press Release
WICHITA, KAN. - The owner of a plastics recycling company in El Dorado pleaded guilty Monday to mishandling waste chemicals and agreed to pay more than $118,000 in restitution to the Environmental Protection Agency, U.S. Attorney Barry Grissom.
Brian J. Riley, 41, Andover, Kan., owner of Integrated Plastic Solutions, LLC., pleaded guilty to one count of negligent exposure to a hazardous air pollutant. In his plea, he admitted the company stored hazardous wastes at its facility in the form of paints, solvents and other chemicals. The paints and solvents contained ethyl benzene, which is classified as a hazardous air pollutant. After becoming aware that the Kansas Department of Health and Environment was investigating the company’s waste handling practices, Riley allowed some paints and solvents to be dumped on the IPS grounds, releasing ethyl benzene and exposing employees to the risk of flash fire and explosion.
Sentencing is set for March 30. He faces a maximum penalty of a year in federal prison and a fine up to $100,000. Grissom commended the Environmental Protection Agency and Assistant U.S. Attorney Alan Metzger for their work on the case.
Anchorage Man Sentenced to more than 21 Years for Drug Trafficking, Causing Death of Young WomanRead the Press Release
Anchorage, Alaska B U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced by United States District Court Judge Timothy M. Burgess to serve 262 months in federal prison for his role in a drug trafficking conspiracy that led to the death of a young woman.
Dwight Williams, 51, of Anchorage, Alaska previously pled guilty to participating in a drug conspiracy to distribute significant quantities of heroin and methamphetamine. As part of the conspiracy, in early August 2013, Williams and a co-conspirator sold approximately 14 grams of methamphetamine in exchange for $1350.
Williams also admitted that, just a few weeks later, he distributed heroin to a young woman, S.C., and that giving heroin to S.C. resulted in her death from an overdose. Specifically, Williams admitted that on August 26, 2013, he and S.C. traveled to a hotel in Anchorage where, in the early morning hours, Williams supplied S.C. with the heroin that ultimately caused her death. After distributing heroin to S.C., Williams took steps to conceal his involvement in her death by making false claims to law enforcement.
Just three days after S.C.’s tragic death, Williams continued his drug trafficking activities, this time working with others to distribute more than 100 grams of heroin and almost 30 grams of nearly pure methamphetamine. On August 29, 2013, Williams and a co-conspirator traveled to another hotel in Anchorage where the group rented a room. Williams arrived at the hotel on that date already in possession of both heroin and methamphetamine that he and his associates intended to distribute.
Upon his release from prison, Williams will remain under court supervision for five years. He was also ordered by Judge Burgess to forfeit a Cadillac Escalade that he used to facilitate his drug trafficking activities.
In sentencing Williams, Judge Burgess noted that he found it difficult to emphasize how sad this case is for the victims. He also called Williams’ actions extremely reckless and cited the need for the sentence in the case to protect the public from future crimes by Williams.
In announcing the sentence, U.S. Attorney Loeffler praised the Drug Enforcement Administration, the Anchorage Police Department, and Homeland Security Investigations for their investigation of the case.
Additional Charges in Ongoing National Guard Recruiting-Fraud InvestigationRead the Press Release
SACRAMENTO, Calif. — Steel A. Davis, 42, of Paradise, was arraigned today in federal court, charged with wire fraud in a scheme to obtain bonuses for purportedly referring individuals to enlist in the California National Guard, United States Attorney Benjamin B. Wagner announced. Davis pleaded not guilty to the charges.
According to court documents, the United States Army contracted with a company called Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive monetary compensation disbursed by DOCUPAK.
According to the indictment, Davis, who was a recruiter with the California National Guard at the time, is alleged to have given recruits’ information to recruiting assistants, who would then file false claims with DOCUPAK that they had referred the recruits to join the Guard when, in fact, the recruits had joined on their own initiative. When the compensation was received, Davis is alleged to have then split the proceeds of the fraud with the recruiting assistants.
This case is the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the case.
If convicted, Davis faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
In May 2014, eight other National Guard soldiers were indicted in Sacramento and Fresno. Two of those defendants have pleaded guilty. The remaining cases are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Friday 9 January 2015
Willoughby Hills Man Sentenced to Prison for False Tax ReturnsRead the Press Release
A Willoughby Hills man was sentenced to 18 months in prison for filing false tax returns, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Alexander J. Cucu, 41, filed false tax returns in 2008, 2009 and 2010, underreporting his income by approximately $139,434. He pleaded guilty to three counts last year.
This case is being handled by Assistant U.S. Attorney Mark S. Bennett following an investigation by the Internal Revenue Service – Criminal Investigations.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Matthew Eash, 33, of Bristol, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for April 8, 2015. This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
- Derrick Smith, 40, of South Bend, Indiana pled guilty to the felony offense of felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for April 8, 2015. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Andre A. Forbes, 40, of South Bend, Indiana pled guilty to the felony offenses of distribution of crack cocaine and cocaine powder, being a felon in possession of a firearm, and tampering with a government witness. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for April 15, 2015. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
If convicted in court, any specific sentence to be imposed will be
determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.DISPOSITIONS
- Kevin A. Hoffman, 40, of St. John, Indiana was sentenced to 300 months imprisonment with 10 years supervised release after being found guilty by jury trial to the felony offenses of production and possession of child pornography. According to documents filed in this case, in September 2013, Hoffman was living with his girlfriend. Also living at the address were his girlfriend’s daughters ages 18 and 6. Hoffman used his cell phone to take nude photographs of the youngest child. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney John Maciejczyk.
- Carla Latice Merriweather, 25, of South Bend was sentenced to 60 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being an unlawful user of a controlled substance in possession of a firearm. According to documents filed in this case, in the early morning hours of August 6, 2014, the defendant stole a white pickup truck in South Bend, Indiana. Inside the truck was a loaded AMT pistol, model: Backup, caliber: .380. The defendant then used that firearm to shoot at a male who was pursuing her from whom she had obtained controlled substances in the past who she believed was following her in an effort to collect a drug debt. This occurred near the intersection of Western and Walnut in South Bend. A little after 3:00 a.m. on August 6, 2014, police then saw the defendant driving the stolen vehicle and attempted to stop the vehicle. The defendant then led police on high speed chase. At one point during the chase, the defendant ran a red light and narrowly missed colliding with another vehicle who was proceeding through the intersection on a green light. While police were in pursuit and attempting to apprehend her, the defendant fired multiple rounds from the stolen handgun at the pursuing officers. The vehicle pursuit ended at Barbie Street and Main Street in South Bend where Merriweather initially refused to exit the truck despite police commands to do so. Merriweather was subsequently taken into custody. After being placed in a police vehicle, the defendant then began to kick at the windows of the police car. Officers tried to restrain her, and she attempted to bite the officers. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Marlon Carr, 31, of Gary, Indiana was sentenced to 30 months imprisonment with 1 year supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on April 30, 2014, Carr was arrested by the Lake County Sheriff’s Department in the area of 2600 Jefferson in Gary, Indiana in possession of a firearm. Carr had been convicted of robbery in Lake County, Indiana . This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
- Akeem Dillon, 28, of Sauk Village, Illinois was sentenced to 41 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, on February 24, 2014, Dillon possessed multiple firearms after being convicted of a felony drug crime in 2004. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Chicago Police Department. This case was prosecuted by Assistant United States Attorney Thomas McGrath.
- Ola Mohammad 33, of Bridgeview, Illinois was sentenced to 18 months imprisonment with 1 year supervised release and ordered to pay $401,300.16 in restitution after pleading guilty to the felony offenses of knowingly and willfully conspiring to defraud the United States Department of Agriculture (USDA) Supplemental Nutrition Assistance Program (SNAP) benefit program and defrauding the USDA SNAP benefit program through wire fraud. This case was the result of an investigation by the Federal Bureau of Investigation and the United States Department of Agriculture. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Vienna man sentenced for participating in drug distribution ringRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Timothy A. Fields, 38, of Vienna, West Virginia, was sentenced to 72 months in federal prison with 3 years supervised release.
Bennett pleaded guilty in October 2014, to participating in a marijuana and cocaine distribution ring operating in and around Parkersburg, West Virginia and Belpre, Ohio. He admitted to receiving drugs through the mail, distributing the drugs and delivering or wiring cash proceeds at the direction of another party.
Between October 2013 and April 2014, task for officers from the Washington County Major Crimes Task Force (Ohio) and the Parkersburg Narcotics and Violent Crimes Task Force made multiple controlled purchases of marijuana and cocaine from Fields and other members of the distribution ring.
The investigation was conducted by the Internal Revenue Service, Parkersburg Narcotics and Violent Crimes Task Force and Washington County Major Crimes Task Force
United States District Judge John T. Copenhaver imposed the sentence.
Assistant United States Attorney Joshua Hanks handled the prosecution of this case.
United States Attorney announces arrest of Center Township officialRead the Press Release
Township Community Business Counselor alleged to have embezzled over $66,000 in Social Security benefits intended for the elderly and disabled
INDIANAPOLIS - Acting United States Attorney, Josh J Minkler announced this morning the arrest of Carmen Batts-Porter, 32, Indianapolis, who was charged by criminal complaint with theft/embezzlement of federal program funds. Batts- Porter serves as the Community Business Counselor for the Center Township Trustees Office, administering Social Security or SSI payments to beneficiaries who are incapable of managing their own payments.
"Stealing from those who are the least capable is a crime we will never look away from,” said Minkler. "If you do not uphold the public trust, our Public Integrity Working Group will find you, investigate you and the U.S. Attorney's Office will prosecute you to the fullest extent of the law." Minkler further stated. “This is the second time in six months federal law enforcement has had to police the Center Township Trustee’s Office. It is time for Center Township Government to clean up this mess.”
Batts-Porter worked at the Center Township Trustee’s Office which serves as the Representative Payee (RP) for Social Security benefits. The RP administered SSI payments to beneficiaries and whose main responsibility is to use the SSI benefits to pay for current and foreseeable needs of the beneficiary. The Center Township Trustee’s Office manages over $1 million annually for the Social Security Administration.
The criminal complaint alleges that from 2010 to 2014 Batts-Porter embezzled $66,682 in Social Security Administration (SSA) funds which were held in trust for SSA beneficiaries. It is further alleged that she used the embezzled money to pay person credit cards during that period. The funds were discovered to be missing during a routine audit by SSA investigators.
Minkler explained this case was the result of outstanding law enforcement work by the
Federal Bureau of Investigation, the Social Security Administration, Office of Inspector General, and the Indiana State Board of Accounts. All three agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Individuals with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.FBI Special Agent in Charge W. Jay Abbott said, ‘“The FBI is committed to investigating individuals that violate the public’s trust.”
SSA OIG, Office of Investigation, Special Agent in Charge William J. Cotter said, “It is unfortunate that, once again, the Public’s confidence in government is shaken by a civil servant lining her pockets with money stolen from some of the most vulnerable members of our society.”
According to Senior Litigation Counsel Bradley A. Blackington, who is prosecuting the case for the government, Batts-Porter could be sentenced up to 10 years in federal prison if convicted. She had her initial appearance before a magistrate judge yesterday and was released; no future court date has been set.A complaint is only charges and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Individuals Sentenced in Federal Court for Defrauding AIG out of Hundreds of Thousands of Dollars in West Des Moines, IowaRead the Press Release
DES MOINES, IA – Former Iowa resident Christina M. Pender and California resident Robert K. Taylor have pled guilty to defrauding insurance company AIG out of hundreds of thousands of dollars. Taylor also pled guilty to making false statements to a financial institution involving a mortgage fraud scheme in California. Pender pled guilty on April 17, 2014, and Taylor pled guilty on August 27, 2014.
On May 21, 2013, a federal grand jury in the Southern District of Iowa indicted Pender and Taylor for wire fraud. From approximately April 1, 2010 to January 5, 2011, Pender and Taylor perpetrated a scheme whereby Pender, then an AIG insurance adjuster located in West Des Moines, Iowa, approved payments to companies owned by Taylor for expert services that were never provided. Taylor’s companies were based in California, where he resided, and included TEI Group Associates, Inc., TEI Group, Inc., and Equitable Consulting Solutions. Pender also approved payments for expert services that were not provided to another Iowa-based company, MDP Group, which was owned, in part, by her then-boyfriend. All of the alleged services were supposed to be for consulting in furtherance of AIG’s handling of construction defect claims that were in litigation. In total, Pender admitted that she approved approximately $925,406 in payments by AIG for services that were not provided. Taylor received $666,128.98 of those payments.
During the pendency of the prosecution for wire fraud, the Government discovered that Taylor was also part of a mortgage fraud scheme in California. From approximately December 2005 through April 2006, Taylor applied for and received mortgage loans and lines of credit that he used for the purchase and refinance of several real properties in Kingsburg, California. In his mortgage loan and line of credit applications for these properties, Taylor knowingly and fraudulently identified his social security number as a number which he knew was not his social security number in an effort to influence the approval and funding of the loans. Taylor ultimately defaulted on his payment obligations, and the Kingsburg properties were foreclosed. Then, on November 20, 2012, Taylor subsequently filed a petition for bankruptcy using the fraudulent social security number. As a result of Taylor’s false statements for the purpose of obtaining the mortgage loans and lines of credit, Taylor caused lending institutions, including Countrywide Bank, losses of $326,100. Taylor pled guilty to an Information charging him with making false statements to a financial institution.
Pender was sentenced to 18 months in prison and ordered to pay restitution in the amount of $879,401.74 to AIG. Taylor was sentenced to 28 months in prison and ordered to pay restitution in the amount of $376,468.80 to Bank of America and $623,924.72 to AIG.
The wire fraud case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa. The case involving false statements to a financial institution was investigated by the Federal Deposit Insurance Corporation—Office of Inspector General and prosecuted by the United States Attorney’s Offices for the Eastern District of California and the Southern District of Iowa.
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Two Conspirators Sentenced for Fraudulently Using the Identities of Others to Buy Luxury VehiclesRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Michael Lee Kelly, age 34, of Baltimore, today to 45 months in prison followed by four years of supervised release for bank fraud conspiracy and aggravated identity theft arising from a scheme to buy luxury vehicles using the personal identity information of others. On January 6, 2015, Judge Bennett sentenced co-conspirator Michael Christopher Marshall, age 35, also of Baltimore, who was the leader of the scheme, to 61 months in prison followed by four years of supervised release for the same offenses.The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to their plea agreements, from December 2009 to November 2010, Kelly and Marshall selected automobiles to buy from Maryland dealerships. They used the identities of others to finance the purchase of the vehicles because they knew that they would not qualify for financing using their own identities. In some cases, others were willing to allow the defendants to use their identities. In other cases, the defendants used stolen identity information, a counterfeit identification document and an imposter posing as the victim to complete the purchases.
For example, in December 2009, Marshall used the identity of another whose identity was stolen to purchase a 2007 Mercedes S550 from a car dealer in Owings Mills, Maryland.
In May of 2010, Marshall asked Kelly to find an individual who was about the same age as another man whose identity had been stolen. Kelly recruited his uncle, Guillermo Torres, to pose as this victim, and obtained a counterfeit identification bearing the personal identity of the victim but the picture of Torres. On May 28, 2010, Kelly drove Torres to a car dealer where Torres waited outside while Kelly selected a 2007 Mercedes S-550 and completed an application to purchase the car. Torres then signed as the victim and used the counterfeit driver’s license to obtain financing. On that same date, Marshall and Kelly drove Torres to another auto dealer where Torres again posed as the victim and provided the counterfeit driver’s license in order to obtain financing of a 2008 BMW and a 2009 Audi S5.
During Marshall’s participation in the conspiracy, he and his co-conspirators obtained or attempted to obtain between $400,000 and $1 million in financing, and defrauded between 10 and 50 individuals and financial institutions. During Kelly’s participation in the conspiracy, he and his co-conspirators obtained or attempted to obtain between $200,000 and $400,000 in financing, and defrauded at least 10 individuals and institutions.
Guillermo Torres, age 50, of Owings Mills, previously pleaded guilty to his participation in the scheme and is scheduled to be sentenced on January 15, 2015 at 3:00 p.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service for its work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who prosecuted the case.
Twenty Year-Old Man Sentenced for Child PornographyRead the Press Release
SAN JUAN, P.R. – Today, defendant Anthony Alemàn-Pagàn was sentenced to a term of imprisonment of 97 months followed by 18 years of Supervised Release Term by US District Court Judge Daniel R. Domínguez, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
On June 13, 2012, Alemàn-Pagàn was charged with transportation, receipt and possession of child pornography. According to the charging document, Alemàn-Pagàn knowingly sent an email message from his personal email account to more than 50 addressees containing two compressed files entitled “Girls.zip” and “Boys.zip, which when extracted revealed images depicting graphic and violent images of child pornography. The indictment revealed that, on several occasions, he received files containing child pornography. On April 3, 2014, the defendant pled guilty to one count of receipt of child pornography.
“I sincerely hope that a sentence of 8 years incarceration sends a clear message to anyone who knowingly searches for, receives and downloads images of child pornography from the internet. If you do or have considered doing so, please think long and hard what a sentence of 8 years incarceration would do to your life and that of your family. The U.S. Department of Justice, through its Project Safe Childhood, continues day-in and day-out investigating and prosecuting online sexual predators of minors,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez.
The investigation was led by Immigration and Customs Enforcement (ICE) Homeland Security Investigations (DHS) and the Puerto Rico Police Department. The case was prosecuted by Assistant U.S. Attorney Marshal Morgan.Three Individuals Sentenced on Identity Theft and Credit Card Fraud ChargesRead the Press Release
St. Louis, MO – These individuals recruited young United States citizens with promises of large financial gain with relatively limited risk if they agreed to travel throughout the United States and pass credit cards embedded with the numbers obtained from the various databases.
According to court documents, in May 2014, individuals residing in Mexico and Arizona initiated a scheme to fraudulently obtain access to the databases of credit card processing systems. These individuals recruited young United States citizens with promises of large financial gain with relatively limited risk if they agreed to travel throughout the United States and pass credit cards embedded with the numbers obtained from the various databases. Upon obtaining the consent of their recruits, the individuals produced credit cards bearing the names of financial institutions operating in Mexico and embossed with the names of the recruits. The counterfeit credit cards were hidden in items such as magazines and sent through interstate carriers such as Federal Express to the carriers shipping offices. A more experienced individual traveled with the recruits in order to instruct them as to the type of purchases to make and how to handle the logistics of the scheme, such as obtaining transportation and lodging. When the recruits and their supervisor arrived at the designated location, they retrieved the packages from the shipping location, and proceeded to use the counterfeit cards to purchase assorted merchandise.
In the fall of 2013, unknown individuals breached the database of Heartland Payment Systems, a credit card processing system that services business, such as a restaurant in Ellisville, Missouri. Unfortunately, the restaurant did not receive notice of the breach until June 2014. In the intervening time, near May 20, 2014, in Tucson, Arizona, an unidentified individual approached Israel Olivas Jr. with the offer of participating in the scheme. Olivas agreed to participate and Olivas recruited Carlos Alonso Serna, Jr. to join the endeavor. Upon obtaining the consent of Olivas and Serna, the unidentified individual introduced Olivas to Luis Ruben Sanchez-Castro, a citizen of Mexico who entered the United States in Nogales, Arizona, with proper documentation. Sanchez-Castro had participated in the conspiracy on four to five occasions prior to meeting Olivas.
Olivas, Serna and Sanchez-Castro flew from Arizona to Kansas City, Missouri, in May 2014. Sanchez-Castro rented a vehicle using a counterfeit credit card. He and Olivas drove to a FedEx store in the Western District of Missouri to accept delivery of the package containing the counterfeit credit cards that had been sent from Arizona. Between May 22, 2014, and May 26, 2014, Olivas, Serna and Sanchez-Castro traveled from the Western District of Missouri, to the Eastern District of Missouri and continued to the Southern District of Illinois, using counterfeit credit cards embedded with the account numbers of individuals they believed to be residents of the St. Louis Metropolitan area. Of the 155 cards transported into the Eastern District of Missouri, the account numbers of approximately 105 residents of the St. Louis Metropolitan area were embedded on the cards bearing the names of the defendants. As a result of the number of cards, the loss exceeded $70,000Olivas, Serna, Jr. and Sanchez-Castro appeared today for sentencing before United States District Judge Carol E. Jackson. Sanchez-Castro, who was also charged with aggravated identity theft, was sentenced to 45 months incarceration. Olivas was sentenced to 24 months incarceration and Serna, Jr. received a sentence of 30 months incarceration. Each of the defendants was also ordered to pay restitution to the identified victims of the scheme.
Two additional people, Yesenia Melissa Celaya-Rivera and Yennica Guadalupe Soto-Campa, citizens of Mexico, were charged this week in a separate indictment based upon their participation in the scheme between December 12 and December 15, 2014.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
These cases were investigated by the United States Postal Inspection Service, the Illinois State Police and the City of Chesterfield, Missouri Police Department. Assistant United States Attorney Tracy Berry handled the cases for the U.S. Attorney's Office.Texan Sentenced to 84 Months in Prison for Methamphetamine Distribution ConspiracyRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Dallas man was sentenced Thursday to 84 months in prison for a conspiracy to sell methamphetamine in the Shreveport area.
Leonardo A. Gonzalez, 36, of Dallas, was sentenced by U.S. District Judge Donald E. Walter for one count of conspiracy to possess with intent to distribute 5 or more grams of methamphetamine. He was also sentenced to five years of supervised release. According to the February 26, 2014 guilty plea, the DEA conducted two controlled purchases of methamphetamine from codefendant Bruce A. Lee in the Shreveport area in September of 2013. Lee and Gonzalez were later questioned and searched. Agents found 3 ounces of methamphetamine in Lee’s vehicle and 5 ounces of methamphetamine in an apartment Lee was using in Shreveport. Gonzalez admitted to obtaining the drugs from a Texas source and selling them to Lee. Agents recovered $10,000 from Gonzalez’s vehicle.
Lee was sentenced to 60 months in prison and five years of supervised release on July 9, 2014 for one count of conspiracy to possess with intent to distribute 5 or more grams of methamphetamine.
The DEA, Caddo Parish Sheriff’s Office, and the Texas Department of Public Safety took part in the investigation. Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.
Tax Preparer Sentenced to Prison for Filing False ReturnsRead the Press Release
Claimed False Deductions, Business Losses and First Time Homebuyer Credits
on Federal Tax Returns
Baltimore, Maryland - U.S. District Judge Marvin J. Garbis sentenced Judianne Horn, age 44, of Owings Mills, Maryland today to 33 months in prison followed by one year of supervised release for aiding in the preparation of false tax returns.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to her plea agreement, from 2007 to at least 2010, Horn prepared approximately 3,000 tax returns for clients. Horn was self-employed and operated a tax preparation business out of her home in 2007 and again in 2010. In 2008 to 2009, Horn was employed at two other tax preparation businesses located in Owings Mills and Randallstown, Maryland. In all these years, Horn filed federal tax returns which she knew included false deductions or false business losses, thus generating a larger tax refund than the client was otherwise lawfully entitled. Horn admitted that 42 of these tax returns were false and that the total tax loss generated by the fraudulent tax returns is $281,764.Additionally, Horn also filed numerous false tax returns which claimed that the client was entitled to the first time home buyer credit. The credit was designed for persons who purchased a new home after April 8, 2008, and before May 1, 2010 and who did not own a home in the prior three years. A qualified taxpayer could receive a credit of up to $8,000. On at least five tax returns, Horn claimed that the taxpayer qualified for this credit, when in fact the taxpayer had not purchased a home at all. Horn directed the full $8,000 credit to a bank account she controlled.
United States Attorney Rod J. Rosenstein praised the IRS Criminal Investigation for its work in the investigation, and thanked Assistant U.S. Attorneys David I. Sharfstein and Gregory R. Bockin, who prosecuted the case.