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10 February 2015
St. Joseph Man Sentenced to 17 Years, Among 10 St. Joseph Residents Sentenced for Drug TraffickingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 10 St. Joseph, Mo., residents have been sentenced in federal court for their roles in a drug-trafficking conspiracy.
Operation Family Feud was a partnership between the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the St. Joseph, Mo., Police Department, the Buchanan County, Mo., Sheriff’s Department and the Buchanan County Drug Strike Force. Numerous firearms and various quantities of crack cocaine, powder cocaine and marijuana were seized or purchased during the investigation.
Terrance A. Johnson, also known as “Skurge,” 34, of St. Joseph, was sentenced by U.S. District Judge Dean Whipple today to 15 years in federal prison without parole. Johnson was sentenced to an additional two years in prison for violating his supervised release in a separate and unrelated case, for a total sentence of 17 years in federal prison without parole.
Johnson was the source of cocaine and crack cocaine for the conspiracy. Johnson is among 16 defendants who have pleaded guilty to participating in a conspiracy to distribute 280 grams or more of crack cocaine and five kilograms or more of powder cocaine between Jan. 1, 2009, and Oct. 17, 2012. An additional co-defendant has pleaded guilty to a related drug-trafficking charge.
Johnson pleaded guilty to being a felon in possession of a firearm in 2006 and was sentenced to three years and one month in federal prison. Following his incarceration for that conviction, he was serving a three-year term of supervised release while he was involved in the drug-trafficking conspiracy. His supervised release was revoked today.
Also sentenced today to 10 years in federal prison were Anthony M. Busey, also known as “Bew” or “AB,” 36, Dejuan Ford, also known as “Lil Doe,” 23, and Ramon W. Ford, also known as “R-Lo,” 25, all of St. Joseph. Anthony A. Wilson, also known as “Tone Loc,” 28, of St. Joseph, was sentenced today to two years and three months in prison.
Five co-defendants were sentenced on Monday, Feb. 9, 2015. Keyon R. Wilkinson, also known as “Key” or “Lovey,” 23, of St. Joseph, was sentenced to five years and 10 months in federal prison without parole. Wilkinson was identified in court documents as a member of a St. Joseph street gang, the “17th Street Zillas.” A confidential informant bought crack cocaine from Wilkinson approximately 150 times over the course of the conspiracy.
Also sentenced yesterday were St. Joseph residents Donald J. Greer, also known as “DJ,” 34, to five years in federal prison, Dareal S. Green, also known as “DG,” 27, to seven years and three months in prison, and Duran Hughes, also known as “Bozey,” 29, to eight years in prison.
Co-defendant Jarrodd D. Page, also known as “JP” or “Pistol,” 22, of St. Joseph, was sentenced on Feb. 2, 2015, to seven years in federal prison without parole.
Co-defendants Jaron M. Ewing, also known as “Pork,” 21, Elliott D. Ross, also known as “El,” 22, Markanthony T. Greer, also known as “Nate,” 31, Jamie G. Beattie, 54, Karlo L. Ginn, also known as “Los,” 32, all of St. Joseph, and Tyrell W. E. Page, also known as “Relby Gunz” or “Young Gunna,” 29, of Gladstone, Mo., have pleaded guilty to their roles in the conspiracy and await sentencing. Susan A. Thomas, also known as “Mama Sue,” 58, pleaded guilty to maintaining an apartment that was made available for the unlawful distribution of crack cocaine, and awaits sentencing.
This case is being prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the Buchanan County, Mo., Sheriff’s Department, the St. Joseph, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Buchanan County Drug Strike Force.
Shonto Man Sentenced to 7 Years for AssaultRead the Press Release
PHOENIX – On Feb. 9, 2015, Norman George Begay, Jr., 31, of Shonto, Ariz., a member of the Navajo Nation, was sentenced by U.S. District Judge Douglas L. Rayes to seven years’ imprisonment for stabbing his victim, resulting in serious bodily injuries. Begay pleaded guilty on Sept. 22, 2014, to assault resulting in serious bodily injury, occurring on the Navajo Indian Reservation.
The investigation was handled by the Federal Bureau of Investigation and the Navajo Nation Department of Criminal Investigation. The prosecution was handled by Dimitra H. Sampson.
CASE NUMBER: CR-14-8093-PCT-DLR
RELEASE NUMBER: 2015-014_Begay
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
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Saratoga Couple Indicted for Tax and Mortgage FraudRead the Press Release
SAN JOSE – Meili Lin, AKA Ally Lin, and Jyh-Chau Horng, AKA Henry Horng, were arraigned today on charges of tax and mortgage fraud, announced United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez
A federal grand jury in San Jose indicted Lin and Horng on two counts of filing false tax returns, in violation of 26 U.S.C. § 7206(1), on January 28, 2015. Horng was also charged with one count of making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2), and two counts of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014. Lin was also separately charged with one count of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014.
According to the Indictment, Lin and Horng, then a married couple residing in Saratoga, Calif., filed joint federal income tax returns for 2006 and 2007 which underreported their income, and which failed to disclose Lin’s interest in foreign financial accounts in 2006. The Indictment alleges that Horng subsequently made several materially false statements to an IRS Revenue Agent regarding the couple’s income and Lin’s foreign accounts, among other things. The Indictment further alleges that Lin and Horng both submitted mortgage applications to federally insured lenders that contained materially false information.
Lin and Horng were arrested and made their initial appearances in federal court today in San Jose before the Honorable Paul S. Grewal, U.S. Magistrate Judge. Lin and Horng are next scheduled to appear before Judge Grewal on February 13, 2015 at 1:30 pm.
The maximum statutory penalty for each count of filing a false tax return, in violation of 26 U.S.C. § 7206(1), is three years in prison and a $250,000 fine. The maximum statutory penalty for making false statements to a government agency. in violation of 18 U.S.C. § 1001(a)(2), is five years in prison and a $250,000 fine. The maximum statutory penalty for each count of making false statements to a federally insured institution, in violation of 18 U.S.C. § 1014, is thirty years in prison and a $1,000,000 fine. 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.
Michael G. Pitman is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Lin and Horng must be presumed innocent unless and until proven guilty.
Salinas Man Sentenced to 181 Month in Prison for Drug Trafficking and Firearm OffensesRead the Press Release
SAN JOSE – Hector David Lopez-Banuelos was sentenced yesterday to 181 months in prison, announced United States Attorney Melinda Haag and U.S. Immigration and Customs Enforcement, Homeland Security Investigations Acting Special Agent in Charge Tatum King.
Lopez-Banuelos, 35, of Salinas, Calif., was convicted by a jury on August 27, 2014, of possession of cocaine with intent to distribute, possession of methamphetamine with intent to distribute, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking offense.
Evidence at trial showed that Lopez-Banuelos possessed 814.5 grams of cocaine, 464.7 grams of actual methamphetamine, and a loaded Smith and Wesson 9mm semi-automatic pistol. Law enforcement officers discovered the drugs and weapon during the execution of a state probation search on Lopez-Banuelos’s residence. During the search, officers found a digital scale, a cutting agent, and notebooks containing entries consistent with drug trafficking activity. Officers also found 50 rounds of ammunition hidden behind a false outlet box in the wall. In addition, officers found a bulletproof vest in the residence.
Lopez-Banuelos was indicted by a federal grand jury on September 18, 2013. The sentence was handed down by the Honorable Edward J. Davila, U.S. District Court Judge, following the jury’s return of guilty verdicts on two counts of 21 U.S.C. Section 841, one count of 18 U.S.C. Section 922(g), and one count of 18 U.S.C. Section 924(c). Judge Davila also sentenced the defendant to a five-year period of supervised release. The defendant, who had been in custody, was remanded to the Bureau of Prisons to commence service of his sentence.
The prosecution is the result of an investigation by the Immigration and Customs Enforcement – HSI, the Monterey County Peninsula Regional Violence and Narcotics Team, the Seaside Police Department, and the Monterey County Probation Department.
Rossford Woman Charged with StructuringRead the Press Release
A criminal information was filed charging Jacquelyn A. Bradley, 58, of Rossford, Ohio, with structuring a currency transaction to avoid a reporting requirement, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service – Criminal Investigations, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Rossford Man Charged with Crimes Related to Fraudulent Sales of 33 Homes in Toledo AreaRead the Press Release
A criminal information was filed charging Herman Wayne Bradley, 59, of Rossford, Ohio, for his role in a bank fraud conspiracy, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Bradley is accused of defrauding several lending institutions related to the sale of at least 33 properties in the Toledo area in 2005 and 2006. He did this by representing to various lenders false sales prices on homes, then adding “addendums” for a lower sales price and keeping the difference, according to court documents.
Bradley faces one count each of conspiracy to commit bank fraud, bank fraud, money laundering and filing a false tax return.
The conspiracy took place between November 2005 and continuing through December 2008, according to the information.
Prosecutors are also seeking to forfeit more than $2 million in cash seized in 2011 from 713 Glenwood Road, Rossford, as well as a 2010 Ford F-150 truck.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service-Criminal Investigations, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ronald Randolph Radford Sentenced to 15 Years in Prison for Distributing Child PornographyRead the Press Release
GREENEVILLE, Tenn.- Ronald Randolph Radford, 68, of Johnson City, Tenn., was sentenced on Feb. 9, 2015, to serve 15 years in prison followed by a 10 year term of supervised release with special conditions of release, by the Honorable J. Ronnie Greer, U.S. District Judge for the Eastern District of Tennessee. The sentence was the result of a guilty plea by Radford on Aug. 14, 2014, to a federal grand jury indictment charging him with distributing, receiving, and possessing child pornography. Radford has been in federal custody since his arrest on Apr. 17, 2014.
The indictment and subsequent conviction of Radford was the result of an investigation conducted by the Federal Bureau of Investigation, Tennessee Bureau of Investigation, and Johnson City Police Department. Assistant United States Attorney Helen Smith represented the United States.
At sentencing, Judge Greer noted the seriousness of the offense Radford committed, the high image count of Radford's child porn collection, the need to promote respect for the law, the need to adequately deter such offenses in the general public, the need to protect the public, and Radford's personal history and characteristics.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Rochester Man Pleads Guilty in Plot to Murder A Witness in Sex Trafficking CaseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Robert J. Palermo, 31, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to conspiracy to murder a witness. The charges carry a maximum penalty of 30 years iIn prison, a fine of $250,000 or both.Assistant U.S. Robert A. Marangola, who is handling the case, stated that Palermo, who was in jail on pending federal charges of conspiracy to commit sex trafficking and sex trafficking of a minor, attempted to obtain a hitman to murder the 15 year-old female sex trafficking victim. Over the telephone and in letters, the defendant spoke to multiple individuals about his plot to have a hitman murder the victim in order to prevent her from testifying against him.
To bring the murder plot to fruition, Palermo provided the victim’s name, description and directions to an address as well as the phone number for a person outside of jail for the hitman to contact on behalf of Palermo. Law enforcement officers learned of the plot before any harm came to the victim.
The conviction is the culmination of an investigation on the part of the Federal Bureau of Investigation's Cyber Crimes Task Force, which includes the Rochester Police Department, under the direction of Chief Michael Ciminelli, the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, and Special Agents of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Monroe County District Attorney's Office, under the direction of Sandra Doorley.
Sentencing is scheduled for May 14, 2015 at 4:00 p.m. before Judge Geraci, Jr.
Robertson County Schools Reach Settlement with the Department of Justice to Further School DesegregationRead the Press Release
Today, the Department of Justice reached a settlement agreement with the Robertson County, Tennessee, school district to resolve the department’s determination that the district had yet to fulfill its desegregation obligations in the areas of student assignment and school construction. The department identified a series of district decisions that, over decades, impeded desegregation by building and expanding almost all-white schools while leaving African-American students disproportionately in overcrowded schools with portable classrooms.
As a school system formerly segregated by law, the district has a duty to remedy past discrimination and avoid actions that reestablish segregated schools. The district also has an ongoing obligation under federal civil rights laws to treat all students equitably regardless of race or ethnicity. Under the agreement, all Robertson County students will be assigned to schools, and school facilities will be constructed and maintained, in a desegregated and non-discriminatory manner.
In addition, the agreement ensures that:
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the new elementary school set to open next year will be desegregated,
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overcrowding at predominately minority schools is addressed,
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anticipated changes in student assignment to middle and high schools will further desegregation, and
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cultural sensitivity and competency training is provided to teachers and staff.
“We are pleased that the Robertson County Schools has committed to take steps to provide all students with equitable educational opportunities regardless of race,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “We will work closely with the district as it implements the agreement and develops an effective student assignment plan for its middle and high schools.”
Promoting school desegregation is a priority of the department’s Civil Rights Division. Additional information about the Division is available at www.justice.gov/crt.
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Pennsylvania Man Admits Defrauding Computer Equipment Companies for $2.5 MillionRead the Press Release
TRENTON, N.J. – A Gladwyne, Pennsylvania, man today admitted using phony documents and “straw buyers” to fraudulently secure millions of dollars in discounted computer equipment from Hewlett-Packard Co. (HP) and Cisco Systems Inc. (Cisco), U.S. Attorney Paul J. Fishman announced.
Andrew Silverman, 51, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
From January 2008 through May 2012, Silverman exploited HP and Cisco discount programs that provided reduced prices on products used locally within a certain country and were not resold. As the president and owner of DataQ Internet Equipment Corp., which sold computer hardware and software, Silverman was not eligible to receive these discounts.
Silverman admitted that he recruited business owners to pose as buyers interested in securing a large volume of computing products. He directed these straw buyers to falsely tell HP and Cisco that the procured products would be used internally by those individuals’ businesses and not resold. Once negotiations were complete and the straw buyers fraudulently secured the discounts, Silverman sent funds via international wire transfers to the straw buyers to cover the purchase cost. He then had the discounted equipment shipped to destinations other than the straw buyer’s businesses, including to New Jersey and other locations in the United States.
Silverman also admitted he sent multiple emails to HP representatives posing as an individual named “P.B,” regarding the purchase of deeply discounted HP equipment. Silverman created a company called Integrated Data Centers to conduct negotiations with an HP representative so he could fraudulently obtain discounted HP products.
The estimated combined losses to HP and Cisco are $2.5 million.
The wire fraud charge to which Silverman pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Silverman will be required to forfeit $2.5 million under terms of the plea agreement. Sentencing is scheduled for May 19, 2015.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark; and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the U.S. Attorney’s Economic Crimes Unit in Newark.15-052
Defense counsel: William Winning and Megan Scheib Esqs., Conshohocken, Pa., and Gerald Krovatin Esq., Newark
Owner of Miami Home Health Company Pleads Guilty for Role in $6.9 Million Medicare Fraud SchemeRead the Press Release
The owner of a Miami home health care agency pleaded guilty today in connection with a $6.9 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Orelvis Olivera, 45, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida. A sentencing hearing is scheduled for April 21, 2015.
According to his plea documents, Olivera was an owner and operator of Acclaim Home Healthcare Inc. (Acclaim Home Health), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Olivera admitted that he and his co-conspirators operated Acclaim Home Health for the purpose of billing the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary.
Olivera further admitted that he paid kickbacks and bribes to patient recruiters in exchange for patient referrals, as well as prescriptions, plans of care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries. Olivera admitted that he and his co-conspirators used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services.
From May 2008 to September 2014, Acclaim Home Health billed Medicare approximately $6.9 million for fraudulent claims, and was paid approximately $5.7 million for the same.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorney Kelly Graves of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Operator of Northeastern Pennsylvania Investment Firm Charged with Two Million Dollar Fraud SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania has filed criminal charges against Jason A. Muskey, age 37, of Moosic, Pennsylvania, the operator of a financial services firm, alleging that Muskey diverted approximately two million dollars from clients’ accounts at the firm over a seven year period from 2007 to 2014.
According to United States Attorney Peter Smith, Muskey is charged with mail fraud, money laundering and identity theft in a Criminal Information filed today in the United States District Court in Scranton. The charges allege that Muskey, through his firm, Muskey Financial Services, offered financial advice and investment services to clients. After being entrusted with his clients’ funds, Muskey allegedly forged clients’ signatures to obtain funds from his clients’ investment accounts, deposited funds into his personal accounts and used the money for his own personal benefit. Muskey allegedly falsely represented to clients that the funds were being used to better their investments. When clients requested return or withdrawal of their funds, Muskey allegedly took funds from accounts of other clients and purchased cashier checks to pay the clients who requested withdrawal. Some of the diverted funds came from individual retirement accounts (IRA’s) of clients. Muskey also allegedly used identification information of other persons to gain access to funds to carry out his scheme.
According to the United States Attorney’s Office, there were approximately 26 victims of Muskey’s scheme. The Criminal Information alleges that the government is seeking forfeiture of property obtained with the proceeds of the fraud scheme, including:
- property in Nuangola, Pennsylvania; - proceeds from property in Moosic, Pennsylvania; - timeshare properties in Mountain Laurel Resort and Spa, White Haven, Pennsylvania and the Grand Cayman Island Resort; - the contents of bank accounts at PNC Bank, Peoples Security Bank and a Union Central 401(k) plan; - two boats, three trailers and a pickup truck.
The Government also filed a plea agreement with the defendant which is subject to the approval of the court. If convicted, Muskey faces a maximum of 22 years in prison and $1,000,000 in fines.
The investigation is being conducted by the United States Secret Service with the assistance of the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Michelle L. Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Nevada Man Sentenced to Nearly 10 Years in Prison in Fraud Scheme Targeting Chiropractors Who Developed Pain-Relieving Back BraceRead the Press Release
SANTA ANA, California – A Nevada man who was already serving seven years in federal prison for running an investment scheme has received a second sentence of nearly 10 years for defrauding the inventors of a back brace device called the “Gorillaback.”
Jonathan Glen Turner, 40, of Las Vegas, was sentenced to 115 months in federal prison late yesterday by United States District Judge James V. Selna. In addition to the prison term of almost 10 years – which will run consecutive to an 84-month sentence Turner received in May 2014 – Judge Selna ordered the defendant to pay $229,500 in restitution.
Following a three-week trial in August 2013 in which he represented himself, Turner was found guilty of three counts of wire fraud and one count of committing a felony while on pre-trial release. The evidence at trial showed that Turner, while free on bond in the earlier investment fraud case, befriended a Las Vegas chiropractor who had invented the Gorillaback device. Turner advised the inventor that he had been in the sales business and could sell the Gorillaback product. Turner, the chiropractor, and the chiropractor’s wife then formed a company – Products International – to manufacture and sell the back brace.
However, Turner made no effort to sell the device. He instead created fraudulent purchase orders to create the false impression that more than 10,000 Gorillabacks had been ordered and sold. Turner concealed the fact that he did not have the means to manufacture the device and there were no actual buyers.
Turner persuaded the victims to obtain investment money from their family and friends to have the “pre-sold” devices manufactured. Between March 2011 and January 2012, four additional victims in Orange County invested to have the devices manufactured, for a total loss to all victims of approximately $229,500.
Instead of using the money to manufacture Gorillabacks, Turner deposited the funds into bank accounts under his control and used the money for his personal use. Turner was arrested in this case in April 2012 and has been held without bond since that time.
While conducting the fraud involving the Gorillaback device, Turner was pending trial in another fraud that cost victims $2.6 million. Turner went to trial in that case in October 2012 and was convicted by a jury of two counts of mail fraud and two counts of wire fraud. He was sentenced in May 2014 (see: http://www.fbi.gov/losangeles/press-releases/2014/las-vegas-man-sentenced-to-more-than-seven-years-in-fraud-scheme-that-caused-orange-county-victims-to-lose-more-than-1-million).
Both cases against Turner were the product of investigations by the Federal Bureau of Investigation.
Release No. 15-012
Mt. Vernon, Indiana, man sentenced to nine years for robbery with a sawed off shotgunRead the Press Release
PRESS RELEASE
Evansville – Josh J. Minkler, Acting United States Attorney, announced today that a Mount Vernon man was sentenced in federal court for his role in a summer 2013, robbery of a convenience store. Roger Thomas, Jr., 20, was sentenced to 108 months (nine years) in prison by U.S. District Chief Judge Richard L. Young after being found guilty of robbery, use of a firearm in connection with a crime of violence, and possession of a sawed off shotgun.
Court documents indicated, Thomas entered a convenience store on West Fourth Street in Mount Vernon, just after midnight on August 20, 2013. He was wearing dark clothing over his head and face as he approached the clerk with a saw-off shotgun and demanded money, threatening to shoot if the clerk did not comply. Thomas took cash, several cartons of cigarettes and lottery tickets as he ran from the store.
Officers from the Mount Vernon Police Department quickly responded and located Thomas sitting in a vehicle near the robbery location. They secured a search warrant for the vehicle and found cash, lottery tickets, cigarettes and the loaded saw-off shotgun used in the robbery.
“The reduction of violent crime remains a top priority for this office,” said Minkler. “Those who choose to terrorize our neighborhoods using violence, will be held strictly accountable and find themselves serving federal time.”
This case was the result of an investigation by the Federal Bureau of Investigation Safe Streets Task Force and the Mt. Vernon Police Department.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Thomas must serve three years of supervised release after his sentence.
Miami-Dade County Resident Convicted for being a Felon in Possession of a FirearmRead the Press Release
An Overtown resident was convicted by a jury for being a felon in possession of a firearm.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Jarod Montell Alonso, a/k/a “Rob Dough,” 29, was convicted in a three-day trial before U.S. District Judge Beth Bloom for being a felon in possession of a firearm. The jury was presented with evidence of the terror Alonso brought upon the residents of Overtown. The facts of the conviction include Alonso shoving the barrel of an AK-47 into the face of a 50-year old grandmother, as she walked from a neighborhood corner store. Just minutes after Alonso threatened to kill the grandmother, Alonso was tracked down to a nearby apartment and arrested. During his arrest, a defiant Alonso yelled to police, “I run that block.” Police searched the apartment where Alonso was found, and discovered the firearm Alonso used during the assault, hidden inside a 5-year old child’s bedroom.
Alonso has previously been convicted of state felony crimes, including attempted first degree murder, and now faces a minimum sentence of 15 years in prison as an armed career criminal.
Alonso is scheduled to be sentenced on April 17, 2015, at 9:00 a.m.
This case is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
Mr. Ferrer commended the investigative efforts of ATF and MPD. The case is being prosecuted by Assistant U.S. Attorneys Breezye Telfair and Benjamin Widlanski.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Convicted for Assault on a Federal Law Enforcement OfficerRead the Press Release
After a week-long trial, a federal jury convicted a trucker and Miami, Florida resident of assault upon a federal law enforcement officer. Evidence presented at trial showed that the defendant, after being asked to leave the Claude Pepper Federal Building in downtown Miami, punched a security officer in the face.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Curtis Huston, Threat Management Branch Chief, Federal Protective Service (FPS), made the announcement.
According to the evidence presented at trial, on February 20, 2014, Lark Suddith, 67, who was in the security line in the lobby of the Claude Pepper Federal Building, began complaining about the wait time so loudly and inappropriately that he created a disturbance. A security officer asked Suddith multiple times to calm down and to stop yelling and cursing, but Suddith refused. Over the next several minutes, Suddith continued to disrupt business in the building and create a security concern, and ignored further warnings from the security officer to cease or face removal from the building. Finally, the security officer asked Suddith to leave the building and, when Suddith refused, the security officer had to use physical force to remove Suddith, who was twice the officer’s size. The security officer put his hands on Suddith’s shoulder and back and walked him out of the building. While the security officer was walking Suddith through the doors of the building, Suddith turned and punched the security officer in the face.
At trial, the security officer testified about how the incident occurred, and the jury watched the building security video, which captured the entire incident. In addition, a Special Agent with the FPS testified about how the security officer’s use of force to remove Suddith was appropriate, as Suddith’s defense at trial was that the security officer used excessive force such that he was justified in punching the officer in the face. Evidence at trial further revealed that this was not the first incident of violence involving the defendant, as he was also convicted by a jury of misdemeanor battery in 2012.
At sentencing, Suddith faces up to 33 months in prison for assault. Suddith is scheduled to be sentenced on April 6, 2015, at 3:00 p.m., before U.S. District Judge Joan A. Lenard.
Mr. Ferrer commended the investigative efforts of FPS. This case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Who Operated Reno Consulting Firm Sentenced to 2 1/2 Years in Prison for Theft and Failing to Pay Employment TaxesRead the Press Release
RENO, Nev. – Michael Stickler, 54, of Reno, was sentenced on Monday, Feb. 9, 2015, by U.S. District Judge Miranda M. Du to 2½ years in federal prison, three years of supervised release, 100 hours of community service, and ordered to pay $200,000 in restitution to the U.S. Department of Health and Human Services and $100,899 to the IRS for his convictions on theft of federal grant money and failing to pay employment taxes, announced U.S. Attorney Daniel G. Bogden for the District of Nevada.
“Government programs are often the victims of scams and fraud,” said U.S. Attorney Bogden. “If you steal from a federal program, you risk being investigated, prosecuted and sent to prison.”
Stickler owned and operated a company in Reno called Faith Based Solutions from 1999 to 2009. In 2007, Faith Based Solutions, received $500,000 in federal grant money to teach non-profit organizations how to apply for federal government grants. Part of the grant terms required that $200,000 of the grant funds be paid to sub-grantees. However, Stickler drew down all of the grant funds in the first seven months of the grant period and no money was ever provided to any sub-grantee. Rather, Stickler put the money in accounts that he controlled and used it to pay large salaries to himself and family members, to take elaborate vacations, and for other items that were not approved by the grant. Stickler also collected and withheld employment and FICA taxes from his employees’ wages, but failed to pay them over to the IRS.
Stickler pleaded guilty to one tax charge and was convicted by a jury of the theft charge. He is released on a personal recognizance bond and must report to federal prison by May 11, 2015.
The cases were investigated by IRS Criminal Investigation and the U.S. Department of Health and Human Services Office of Inspector General. They were prosecuted by Assistant U.S. Attorney Carla B. Higginbotham.
Macy Residents Sentenced for Copyright InfringementRead the Press Release
United States Attorney Deborah R. Gilg announced that William Cayou, age 34,of Lincoln, Nebraska, and Holly Cayou, age 39, of Macy, Nebraska, were sentenced upon their convictions for copyright infringement. On February 9, 2015, Chief United States District Court Judge Laurie Smith Camp sentenced William Cayou to 5 years’ probation. On January 12, 2015, United States Magistrate Judge Thomas D. Thalken sentenced Holly Cayou to 5 years’ probation. While on probation, the Cayous will each have to perform 200 hours of community service and each defendant will have to separately pay $1,500 in restitution.
William Webster and Holly Cayou were formerly married and resided in Macy, Nebraska on the Omaha Indian Reservation from 2011 through 2013. From May 1, 2011 through May 6, 2013, the Cayous obtained pirated copies of copyrighted motion pictures which they reproduced and sold to persons on the Omaha Indian Reservation without the consent of the copyright holders. The investigation revealed that Holly Cayou sold approximately 600 DVDs and William Cayou sold approximately 1,250 DVDs during the time period.
This case was investigated by the Federal Bureau of Investigation.
Lawn Care Business Owner Sentenced for Lying to Receive Workers' Compensation BenefitsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced that a Breaux Bridge man was sentenced Monday to six months in prison and six months of home confinement for lying in order to continue receiving disability benefits to which he was not entitled.
Mervin J. Noel, 51, of Breaux Bridge, La., was sentenced by U.S. District Judge Elizabeth E. Foote for one count of making false statements to continue receiving workers’ compensation benefits under the Longshore and Harbor Workers’ Compensation Act. He was also sentenced to three years of supervised release and ordered to pay $138,247 restitution to the Social Security Administration (SSA) and Louisiana Workers Compensation Corporation (LWCC).
According to evidence presented at the October 7, 2014 guilty plea, Noel began receiving workers’ compensation and Social Security disability benefits after sustaining an injury while working on an offshore oil platform in 1994. In 2007, Noel began operating a lawn care business without informing either the LWCC or SSA that he was employed and earning income. Instead, on four occasions Noel falsely reported on official documents mailed to LWCC officials that he had no earnings from employment. Noel also appeared in person before SSA officials on April 11, 2014 and falsely reported that he had not worked since becoming disabled. As a result, Noel received $20,776 in workers’ compensation benefits and $118,220 in Social Security benefits to which he was not entitled.
The SSA conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Jury Convicts Houston Man of Smuggling Almost 9 Kilograms of MethamphetamineRead the Press Release
HOUSTON – A federal jury in Houston has convicted Larry Maurice Favorite, 32, of Houston, of possession with intent to distribute at least 500 grams of a mixture or substance containing methamphetamine and conspiracy to do the same, announced U.S. Attorney Kenneth Magidson. The jury returned its verdict this afternoon following a two-day trial before U.S. District Judge Gray Miller.
The jury hard that on June 22, 2012, Favorite drove a Honda minivan from Laredo to the Border Patrol immigration checkpoint on Highway 59, approximately 16 miles west of Freer. His mother, Juanita Eva Velasquez, was riding as a front seat passenger. A law enforcement canine alerted to the van in primary inspection, at which time agents sent the van and occupants to secondary inspection. A search was conducted which revealed three unmarked glass bottles in a bag located near the front passenger seat of the van. The bottles contained a brown liquid that appeared to be thicker than water.Agents then found six more identical looking bottles behind the center console area. The nine bottles held a total of approximately nine liters of liquid, which agents field tested positive for methamphetamine.
Velasquez and Favorite were immediately arrested and agents with the Drug Enforcement Administration (DEA) conducted further investigation. Favorite initially told agents he did not know there were any bottles in the van and that he and his mother had driven down from Houston.
However, when agents asked if the bottles belonged to his mother, Favorite then claimed they were only his. He stated he received them previously from a Hispanic male, but would not elaborate.
The bottles were sent to the DEA laboratory for more thorough testing. The laboratory confirmed the liquid contained methamphetamine having a net weight of 8.966 kilograms with a purity level of 48.4%. The total amount of actual methamphetamine in the bottles was 4.339 kilograms.
As a result of the conviction today, Favorite faces a minimum of 10 years and up to life in federal prison and a possible $10 million fine. He is set for sentencing May 22, 2015.
Velasquez was also charged and pleaded guilty last week to the methamphetamine trafficking conspiracy. She will also be sentenced May 22, 2015.
The investigation leading to the charges in this case was conducted by DEA and Border Patrol. Assistant U.S. Attorney Arthur R. Jones and Anibal Alaniz prosecuted the case.
Joplin, Mountain Grove brothers indicted for $5.6 Million SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that two brothers in Joplin, Mo., and Mountain Grove, Mo., and two employees have been indicted by a federal grand jury for their roles in a conspiracy to sell more than $5.6 million worth of spent cooking oil – stolen from restaurants across five states – to a recycling facility in Oklahoma.
Jeffery Lynn Fleming, 58, of Joplin, his brother, Brian Dale Fleming, 48, of Mountain Grove, and Virgil Orin Bird, Jr., 51, and Neal Sawyer Robbins, 28, both of Joplin, were charged in a 12-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Jan. 20, 2015. That indictment was unsealed and made public today upon Jeffery and Brian Fleming’s arrests and initial court appearances.
According to the indictment, Jeffery and Brian Fleming sold approximately $5,658,636 worth of spent cooking oil that had been stolen from restaurants to a grease recycling business in Tulsa, Okla., between Nov. 1, 2010, and Sept. 30, 2011.
Spent cooking oil was the by-product of cooking oil that restaurants used for frying food. Restaurants had on-site collection tanks in which their spent cooking oil was stored. Many restaurants established contracts with various companies for the collection and removal of spent cooking oil.
Jeffery Fleming operated Fleming Recycling, LLC, in Carterville, Mo. Fleming Recycling allegedly bought stolen spent cooking oil from drivers who stole it from numerous restaurants in Missouri, Tennessee, Iowa, Kansas and Oklahoma. Fleming Recycling then allegedly sold the stolen spent cooking oil to a grease recycling business in Tulsa. Bird and Robbins worked for Jeffery Fleming at Fleming Recycling.
Brian Fleming operated Tri-State Grease in Cabool, Mo. Tri-State Grease allegedly bought stolen spent cooking oil from drivers who stole it both inside and outside the state of Missouri. Tri-State Grease then allegedly sold the stolen spent cooking oil to Fleming Recycling.
All four defendants are charged with participating in a conspiracy to commit the crime of interstate transportation of stolen property.
According to the indictment, a grease recycling business in Tulsa sent a tanker truck to Fleming Recycling on an almost-daily basis. Each tanker truck held approximately 45,000 pounds of stolen spent cooking oil that was valued at approximately $20,000.
The indictment alleges a number of specific instances in which stolen spent cooking oil was sold to the Tulsa business. For example, on Jan. 31, 2011, three tanker truck loads of stolen spent cooking oil allegedly were transported to Tulsa. The Tulsa recycling business then allegedly sent three wire transfers totaling $44,873 to Jeffery Fleming as payment.
The federal indictment cites several instances in which undercover law enforcement officers sold truck-loads of purportedly stolen spent cooking oil to Fleming Recycling and received payment. For example, on July 11, 2011, Brian Fleming allegedly assisted undercover officers in the purported theft of approximately 32,000 pounds of spent cooking oil with a purported value of approximately $9,000 from an undercover tanker truck. The next day, the indictment says, Brian Fleming paid an undercover officer $4,650 for the purported stolen spent cooking oil.
During the conspiracy, the indictment says, Jeffery Fleming (through Fleming Recycling) paid Brian Fleming, Bird, Robbins and other co-conspirators approximately $2,600,709 for stolen spent cooking oil.
In addition to the conspiracy, Jeffery Fleming is charged with one count of interstate transportation of stolen goods, two counts of conducting financial transactions with criminally-derived proceeds, one count of making false statements on tax returns, one count of structuring a financial transaction in order to evade federal reporting requirements and one count of causing a financial institution to fail to file a transaction report. Jeffery Fleming and the other defendants are also charged in five separate money-laundering counts for conducting financial transactions to promote an unlawful activity.
The federal indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government $595,429 seized by law enforcement officers and a money judgment of $5,658,636, representing the proceeds of the alleged offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Abram McGull and Patrick Carney. It was investigated by IRS-Criminal Investigation, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Iowa Home Care Company to Pay $5.63 Million to Settle False Claims Act AllegationsRead the Press Release
ResCare Iowa Inc. has agreed to pay $5.63 million to the United States and the state of Iowa to resolve allegations that it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs, the Department of Justice announced today. ResCare Iowa – a subsidiary of Louisville, Kentucky, based ResCare Inc. – provides home healthcare services to patients in the state of Iowa.
“Home health agencies that bill Medicare and Medicaid must follow the rules,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “This settlement demonstrates the Department’s commitment to safeguarding taxpayer dollars and ensuring that they are used to provide medically necessary services to federal health care beneficiaries.”
The rules of both Medicare and the state of Iowa’s Medicaid program require an independent physician to certify that home healthcare services are medically necessary and to order the specific type and amount of healthcare services to be provided by the home health agency. Additionally, since 2011, Medicare and Iowa Medicaid rules require these independent physicians to perform an in-person “face-to-face” assessment of each patient before the home health agency can bill the government for any home healthcare services. The settlement resolves allegations that between 2009 and 2014, ResCare Iowa billed the government for services provided to Medicare and Medicaid patients in Iowa without documenting compliance with these requirements.
“We commenced this investigation due to concerns that this provider was not complying with the rules and was not submitting accurate claims for payment,” said U.S. Attorney Kevin W. Techau of the Northern District of Iowa. “When the government pays for home-based medical services, we are dedicated to ensuring the money is well spent and medically deserving patients receive the care to which they are entitled.”
“Home health care providers that receive Medicare and Medicaid funds must abide by rules designed to ensure taxpayer funds are spent properly and that patients receive the appropriate care,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to hold health care providers accountable for submitting improper claims.”
Medicaid is jointly funded by the states and the federal government. The state of Iowa, which paid part of the Medicaid funds at issue, will receive $2.32 million of the settlement amount.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.6 billion through False Claims Act cases, with more than $15.1 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Northern District of Iowa, HHS-OIG and the Iowa Attorney General’s Office. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Iowa Home Care Company to Pay $5.63 Million to Settle False Claims Act AllegationsRead the Press Release
Contact: Steve Young
CEDAR RAPIDS – ResCare Iowa Inc. has agreed to pay $5.63 million to the United States and the state of Iowa to resolve allegations that it violated the False Claims Act by submitting false home healthcare billings to the Medicare and Medicaid programs, the Department of Justice announced today. ResCare Iowa – a subsidiary of Louisville, Kentucky, based ResCare Inc. – provides home healthcare services to patients in the state of Iowa.
“We commenced this investigation due to concerns that this provider was not complying with the rules and was not submitting accurate claims for payment,” said U.S. Attorney Kevin W. Techau of the Northern District of Iowa. “When the government pays for home-based medical services, we are dedicated to ensuring the money is well spent and medically deserving patients receive the care to which they are entitled.”
“Home health agencies that bill Medicare and Medicaid must follow the rules,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “This settlement demonstrates the Department’s commitment to safeguarding taxpayer dollars and ensuring that they are used to provide medically necessary services to federal health care beneficiaries.”
The rules of both Medicare and the state of Iowa’s Medicaid program require an independent physician to certify that home healthcare services are medically necessary and to order the specific type and amount of healthcare services to be provided by the home health agency. Additionally, since 2011, Medicare and Iowa Medicaid rules require these independent physicians to perform an in-person “face-to-face” assessment of each patient before the home health agency can bill the government for any home healthcare services. The settlement resolves allegations that between 2009 and 2014, ResCare Iowa billed the government for services provided to Medicare and Medicaid patients in Iowa without documenting compliance with these requirements.
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“Home health care providers that receive Medicare and Medicaid funds must abide by rules designed to ensure taxpayer funds are spent properly and that patients receive the appropriate care,” said Special Agent in Charge Gerald T. Roy of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to hold health care providers accountable for submitting improper claims.”Medicaid is jointly funded by the states and the federal government. The state of Iowa, which paid part of the Medicaid funds at issue, will receive $2.32 million of the settlement amount.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $23.6 billion through False Claims Act cases, with more than $15.1 billion of that amount recovered in cases involving fraud against federal health care programs.
This settlement was the result of a coordinated effort by the Civil Division, Assistant U.S. Attorney Jacob Schunk for the Northern District of Iowa, HHS-OIG, and the Iowa Attorney General’s Office. The claims settled by this agreement are allegations only, and there has been no determination of liability.
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INFORMATION: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Johnston in Great Falls on February 10, 2015, and entering pleas of Not Guilty were:
- JAMES CAMPBELL, a 37-year-old resident of Poplar, appeared on charges of strangulation. If convicted of the charge contained in the indictment, CAMPBELL faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Fort Peck Tribes Department of Law & Justice. PACER Case Reference: 15-15
- SARA LYNN DARNELL, a 42-year-old resident of Poplar, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, DARNELL faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference: 15-13
- GARY O’NEAL DRUM, a 27-year-old resident of Poplar, appeared on charges of burglary. If convicted of the charge contained in the indictment, DRUM faces 20 years in prison, $50,000 in fines and 3 years supervised release. The case was investigated by the Fort Peck Tribes Department of Law & Justice. PACER Case Reference: 15-14
- JEFFERY JOHN HELM, a 60-year-old resident of Nashua, appeared on charges of conspiracy to possess with intent to distribute oxycodone and morphine, possession with intent to distribute oxycodone and morphine, and distribution of oxycodone and morphine. If convicted of the most serious charges contained in the indictment, HELM faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 15-12
Appearing before U.S. Magistrate Judge Lynch in Missoula on February 10, 2015, and entering pleas of Not Guilty were:
- ERIKA RAE BROWN, a 44-year-old resident of San Diego, California, appeared on charges of money laundering and false statements to a government agency. If convicted of the most serious charge contained in the indictment, BROWN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Services. PACER Case Reference: 15-01
- ROBIN RENEE SERVERA, a 44-year-old resident of Helena, appeared on charges of conspiracy to possess methamphetamine with intent to distribute and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, SERVERA faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Missouri River Drug Task Force. PACER Case Reference: 15-04
Appearing before U.S. Magistrate Judge Johnston in Great Falls on February 9, 2015, and entering pleas of Not Guilty were:
- TERRY MICHAEL CROFF, a 55-year-old resident of Cut Bank, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, CROFF faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs and Federal Bureau of Investigation. PACER Case Reference: 15-11
- AUSTIN JAY MANCHA, a 32-year-old resident of Browning, appeared on charges of assault with a dangerous weapon, use and brandishing of a firearm during a crime of violence and felon in possession of a firearm. If convicted of the most serious charges contained in the indictment, MANCH faces life in prison, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 15-10
- SEAN MILO STIFFARM, a 24-year-old resident of Harlem, appeared on charges of involuntary manslaughter. If convicted of the charge contained in the indictment, STIFFARM faces 8 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Belknap Law Enforcement Services. PACER Case Reference: 15-08
Appearing before U.S. Magistrate Judge Lynch in Missoula on February 6, 2015, and entering pleas of Not Guilty were:
- OSCAR VILLALOBOS, a 26-year-old resident of Washington, appeared on charges of conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, VILLALOBOS faces life in prison, $10,000,000 in fines and 5 years supervised release. The case was investigated by the Drug Enforcement Administration and the Missoula HIDTA. PACER Case Reference: 15-02
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hopi Man Sentenced to 43 Months in Federal Prison for Sexual Abuse of a MinorRead the Press Release
PHOENIX – On Feb. 9, 2015, U.S. District Judge Neil V. Wake sentenced Devonte Lee Silas, 19, of Hotevilla, Ariz., to 43 months in federal prison. Silas was also sentenced to a life term of supervised release following his release from prison. On Nov. 20, 2014, Silas, a member of the Hopi Tribe, pleaded guilty to one count of sexual abuse of a minor, occurring on the Hopi Reservation.
The investigation in this case was conducted by the BIA-Hopi Agency.
CASE NUMBER: CR-14-8216-NVW (BSB)
RELEASE NUMBER: 2015-012_Silas
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
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Hidalgo HUD Officials Charged with Conspiracy to Commit Bribery and EmbezzlementRead the Press Release
McALLEN, Texas ‐ Susana Munguia, 61, and Lubina Pedraza, 54, both of Hidalgo, have been arrested and charged with conspiracy to commit bribery and embezzlement and several counts of bribery, announced U.S. Attorney Kenneth Magidson.
Munguia and Pedraza were former officials with the City of Hidalgo Housing Authority who worked directly with the Department of Housing and Urban Development (HUD) Housing Choice Voucher Program (HCVP). Munguia was the executive director and Pedraza was a secretary.
The indictment charging them was returned under seal Feb. 3, 2015, and unsealed today upon their arrest. They made their initial appearances before U.S. Magistrate Judge Dorina Ramos this morning, at which time they were temporarily ordered into custody pending a detention hearing set for Feb. 13, 2015, at 11:00 a.m.
From July 2011 to May 2014, Munguia and Pedraza allegedly used their positions as public officials to engage in a bribery scheme. According to the indictment, the two women solicited and received bribes in exchange for allowing individuals to skip the Section 8 waitlist and immediately obtain housing assistance from the HCVP. Individuals paid, directly or through a third party, a monetary bribe to Munguia and Pedraza in order to bypass the waitlist system and to receive immediate approval to obtain vouchers for housing subsidies under the HCVP, according to the indictment.
Pedraza was responsible for assigning housing to the payee or beneficiary and issued checks to subsidize their rent payments. The indictment alleges that after Munguia and Pedraza received the bribe, the paying party (or the person for whom payment was made), would immediately receive their subsidized housing.
The indictment further alleges that from July 2013 to May 2014, Munguia and Pedraza also engaged in an embezzlement scheme, during which they took more than $5,000 in HUD funds through the issuance of false and fraudulent checks for Section 8 housing assistance. Pedraza was also responsible for the processing of rental subsidies to various landlords/owners.The indictment alleges that uponpreparing the legitimate checks to pay the subsidies, Pedraza did cause multiple false and fraudulent check requests to be issued based on a falsified need for monthly Housing Authority payments to a particular owner/landlord. These fraudulent checks were made out to owners/landlords who either did not own or maintain a rental property and/or the property was not occupied by a Section 8 tenant, according to the allegations.
Munguia was responsible for the verification of the payment and the authorizing signature on the check. The indictment alleges that after Mungia issued and signed the fraudulent checks, Pedraza would then cash the fraudulent checks at Casa de Cambio or deposit the check at a BBVA Compass Bank and subsequently withdraw the money. Both women allegedly shared in the fraudulent proceeds.
If convicted, Munguia and Pedraza face up to 15 years in federal prison for the bribery charges and up to five years for the conspiracy charges.
The investigation leading to the charges was conducted by HUD-Office of Inspector General and the FBI. Assistant U.S. Attorney Kristen Rees 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.Hartford Man Admits Manufacturing and Distributing PcpRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a KEVIN BETTS, also known as “KK,” 28, of Hartford, pleaded guilty today in Hartford federal court to a federal charge stemming from his manufacture and distribution of PCP.
According to court documents and statements made in court, BETTS manufactured Phencyclidine (“PCP”) in his apartment at 57 Sumner Street in Hartford and, on five occasions in July and August 2014, sold the drug out of his apartment to an individual working with law enforcement.
On August 1, 2014, investigators searched the apartment and recovered more than 60 grams of PCP, scales, packaging material, six firearms, approximately 215 rounds of ammunition and a bullet proof vest.
BETTS pleaded guilty to one count of maintaining a drug-involved premises, which carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Michael P. Shea on May 5, 2015. As part of the resolution of this case, BETTS agreed to the forfeiture of the firearms, ammunition and bullet proof vest.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. Close associates of BETTS attended a call-in on April 1, 2014, in Hartford, but members of their group are suspected of being involved in several shooting incidents since then.
This ongoing investigation is being conducted by the Hartford Police Department and the FBI’s Northern Connecticut Violent Crimes Task Force. The FBI task force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Hartford Heroin Trafficker Sentenced to 46 Months in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CHRISTOPHER CARDONA, also known as “Tito,” 30, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, a joint investigation into heroin trafficking in the Hartford area identified CARDONA as a distributor of the drug. On two occasions in March 2014, an individual working with law enforcement purchased approximately nine grams of heroin from Antonio Baez of Hartford. The investigation revealed that CARDONA and another individual supplied the heroin to Baez, and had been supplying Baez with heroin for approximately two years.
CARDONA has been detained since his arrest on March 12, 2014. On November 19, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute heroin, and to distribute, heroin.
Baez has pleaded guilty and awaits sentencing.
This matter is being investigated by the Drug Enforcement Administration, Federal Bureau of Investigation and Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Patrick Caruso and Brian Leaming.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Harrisburg Man Sentenced to 139 Months for Distribution of Crack CocaineRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge John E. Jones sentenced Terrell Hickerson, age 35, of Harrisburg, to 139 months’ imprisonment after Hickerson pleaded guilty in August 2014 to distribution and possession with intent to distribute cocaine base, also known as crack cocaine.
According to U.S. Attorney Peter Smith, as early as the fall of 2012, Hickerson began selling crack cocaine in the Harrisburg area. This conviction represents Hickerson’s third drug trafficking conviction; he was most recently released in September 2011 after serving a 97 month term of imprisonment for conspiracy to distribute crack cocaine.
This case was investigated by the Federal Bureau of Investigation Capital City Safe Streets Task Force, the Harrisburg Bureau of Police, the Hampden Township Police Department and the Dauphin County Drug Task Force. The case was prosecuted by Assistant United States Attorney Daryl F. Bloom.
Gila River Man Sentenced to 14 Years in Prison for MurderRead the Press Release
PHOENIX – On Feb. 9, 2015, Lorenzo Dale Flores, 20, a member of the Gila River Indian Community, was sentenced by U.S. District Judge John J. Tuchi to 168 months in prison. Flores pleaded guilty on Oct. 14, 2014, to second degree murder, occurring within the Gila River Indian Community.
On May 26, 2014, Flores shot the victim multiple times outside a home in Bapchule, Ariz.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-00923-PHX-JJT
RELEASE NUMBER: 2015-015_Flores
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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.
Fresno Woman Pleads Guilty to Embezzling More Than $300,000 from Former Law Firm EmployerRead the Press Release
FRESNO, Calif. — Shelley Corkins, also known as Shelley Kimbrell, 38, of Fresno, pleaded guilty today to three counts of wire fraud in connection with her embezzlement of money from the law firm that formerly employed her, United States Attorney Benjamin B. Wagner announced.
According to the plea agreement, Corkins formerly was employed by a Fresno-based law firm as a bookkeeper and accounting department supervisor. Between January 2008 and May 2012, Corkins abused her access and authority to manage the law firm’s finances and embezzled the law firm’s money for her own personal use. Corkins used her company credit card to make personal purchases at various retail outlets, including clothing and toy stores, electronically transferred funds from the law firm’s bank accounts to her own, and embezzled the law firm’s petty cash. Corkins admitted that while employed with the law firm, she embezzled at least $317,000 of the law firm’s money.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christopher Baker is prosecuting the case.
Corkins is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on May 11, 2015. The maximum statutory penalty for each of the three counts of wire fraud is 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Franklin County Woman Sentenced to 27 Months in Federal Drug Trafficking CaseRead the Press Release
The United States Attorney=s Office for the Middle District of Pennsylvania announced today that Senior U.S. District Court Judge Sylvia H. Rambo sentenced Perla Roman, 32, of Waynesboro, Pennsylvania to 27 months of incarceration for her participation in a drug trafficking conspiracy. On July 28, 2014, Roman pleaded guilty to conspiring with others to distribute and possess with the intent to distribute cocaine hydrochloride.
According to U.S. Attorney Peter Smith, from 2010 to 2013, Roman and others distributed cocaine hydrochloride in the Middle District of Pennsylvania, Maryland and Virginia. This organization obtained cocaine in Chicago, Illinois, transported it back to the Waynesboro, PA area and distributed it in the surrounding counties as well as Maryland and Virginia.
This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Four Columbia Residents Indicted in Heroin ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four Columbia, Mo., residents were indicted by a federal grand jury today for their roles in a conspiracy to distribute heroin in which two persons suffered an overdose.
Javis Deonn Wideman, 36, also known as “Booby” or “Boobie,” James Delvico Borden, also known as “Earl Johnson,” 38, Alec Matthew Ell, 20, and Angelica Melanie Polston, 20, all of Columbia, were charged in a 10-count superseding indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a Dec. 17, 2014, indictment that charged only Ell and Polston, and a Jan. 21, 2015, criminal complaint that charged only Wideman and Borden.
Today’s indictment alleges that all four defendants participated in a conspiracy to distribute heroin in Boone County from February 2014 to Jan. 20, 2015. The conduct of Wideman and Borden as members of the conspiracy, the indictment says, involved 100 grams or more of heroin.
According to an affidavit filed in support of the original criminal complaint, Columbia police officers were dispatched to a residence on Jan. 10, 2015, in reference to a heroin overdose. Upon arrival, officers discovered an unresponsive man and woman. Medical personal were able to revive both of them and the woman was transported to the hospital for further treatment. Officers searched the residence and discovered a package of heroin, still unused, along with drug paraphernalia used to inject heroin. A resident told officers that Wideman had supplied the heroin.
Wideman was arrested on Jan. 20, 2015, the affidavit says, after a cooperating individual met Wideman to purchase a half gram of heroin. Borden was arrested at his residence on the same day. Officers executed a search warrant at Borden’s apartment and found approximately 100 grams of heroin packaged for distribution, along with scales and other items.
According to the affidavit, Wideman and Borden both participated in undercover purchases of heroin in August and September 2014 through an individual who was cooperating with a law enforcement investigation.
In addition to the conspiracy, Ell is charged separately with four counts of distributing heroin and one count of possessing heroin with the intent to distribute. Ell and Polston are also charged together in one count of distributing heroin. Wideman and Borden are each charged separately with one count of distributing heroin and they are charged together in one count of distributing heroin.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the Jefferson City, Mo., Police Department and MUSTANG (Mid-Missouri Unified Strike Team and Narcotics Group).
Former W.Va. State Police employee gets two years for child porn possessionRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Jeffrey Erra Osborne, 49, of Clendenin, West Virginia, was sentenced to two years in federal prison and 10 years of supervised release.
Osborne was employed by the West Virginia State Police for 21 years, most recently as a forensic analyst.
On Nov. 24, 2014, Osborne pleaded guilty to possession of pictures of prepubescent minors engaged in sexual acts. Osborne admitted that on Jan. 17, 2014, he possessed the images on his personal computer in his residence. As part of Osborne’s plea agreement, he has surrendered possession of computers, hard drives and electronic storage devices seized during the execution of the search warrant.
United States District Judge John T. Copenhaver, Jr. imposed the sentence.
The case was investigated by the West Virginia Internet Crimes Against Children Task Force and West Virginia State Police. Assistant United States Attorney Lisa. G. Johnston was in charge of the prosecution.
The case was prosecuted as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
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Former Starr County Deputy Sheriff Pleads Guilty to Drug TraffickingRead the Press Release
LAREDO, Texas - Amy Reyes, 32, a former deputy with the Starr County Sheriff’s Office (SCSO), and her bother Bobby Lee Reyes, 36, both of Rio Grande City, have entered guilty pleas to possession with intent to distribute 34 kilograms of marijuana, announced U.S. Attorney Kenneth Magidson.
On Nov. 10, 2014 Amy Reyes and her brother were arrested at the Border Patrol (BP) Checkpoint located on Highway-16 in Hebbronville. Bobby Lee Reyes was driving a 2010 Chevy Malibu vehicle, while his sister rode as a passenger in the front seat.
Upon primary inspection, a canine alerted to the presence of narcotics within the vehicle. Agents then conducted an x-ray examination, during which time agents discovered 12 bundles of marijuana, weighing 34.9 kilograms, underneath the vehicle’s floor carpet.
Both defendants admitted trafficking marijuana to Houston and expected to receive financial compensation for their involvement. Amy Reyes was employed as a deputy with SCSO, but has since been terminated.U.S. District Judge Marina Garcia Marmolejo will set sentencing in the near future. At that time, the siblings will face up to five years in federal prison and a possible $250,000 maximum fine. They were permitted to remain on bond pending that hearing.
The charges are the result of an investigation by BP and the Drug Enforcement Administration. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting the case.
Former Rite Aid Vice President and New Jersey Businessman Plead Guilty in $29.1 Million Fraud & Kickback SchemeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a former Rite Aid Vice President and a New Jersey business man have pleaded guilty to charges in connection with a $29.1 million dollar surplus inventory sales/kickback scheme. Rite Aid is a publicly-owned national drug store chain with its headquarters located in Camp Hill, Pennsylvania.
During a hearing before U.S. District Court Judge John E. Jones III this afternoon, Jay Findling, age 54, of Manalapan, New Jersey, pleaded guilty to an Information charging him with Conspiracy to commit Wire Fraud. In a separate proceeding held earlier in the day, Judge Jones also accepted the guilty plea of former Rite Aid Vice President Timothy P. Foster, age 65, of Portland, Oregon, to the same Information charging him with False Statements to Authorities. Both charges are punishable by up to 5 years imprisonment and a $250,000 fine.
According to U.S. Attorney Peter Smith, the charges are based upon Foster’s and Findling’s 9 year conspiracy to defraud Rite Aid via a surplus inventory sales scheme. During the time period in question, Foster worked for Rite Aid in Oregon. As the Vice President for Quality Assurance, Foster’s primary responsibilities involved the liquidation of surplus Rite Aid inventory across the United States. The scheme succeeded by making Rite Aid believe its surplus inventory had been sold to Findling’s company, J. Finn Industries, LLC, for amounts reported by Foster when, in fact, the inventory had been sold to third parties for greater amounts. Findling would then kick back a portion of his profits to Foster. The scheme started in 2001 and continued until February of 2010 when Foster resigned from Rite Aid.
During the guilty plea proceeding Findling admitted he established a bank account in New Jersey under the name of “Rite Aid Salvage Liquidation.” The account was used by the conspirators to collect the payments from the real buyers of the surplus Rite Aid inventory. After the payments were received, Findling would send lesser amounts dictated by Foster to Rite Aid for the goods, thus inducing Rite Aid to believe the inventory had been purchased by J. Finn Industries, not the real buyers. During the guilty plea proceeding the government alleged Findling received at least $127.7 million from the real buyers of the surplus Rite Aid inventory but, with Foster’s help, only tendered $98.6 million of that amount to Rite Aid, leaving Findling approximately $29.1 million in profits from the scheme. The government also alleged Findling kicked back approximately $5.7 million of the $29.1 million to Foster.
Foster admitted during his guilty plea hearing that he knowingly and willfully lied when he was interviewed by the FBI in January of 2014 and denied he conspired with Findling to defraud Rite Aid. Foster subsequently recanted his false statements when he was re-interviewed by the FBI on May 1, 2014. During that interview Foster not only admitted he conspired to defraud Rite Aid with Findling, he voluntarily surrendered $2.9 million in cash he had received from Findling over the life of the conspiracy. Foster had stored the cash stored in three 5 gallon paint containers in his Phoenix, Arizona garage.
The Information was filed pursuant to plea agreements with the two defendants. Both agreements require the defendants to cooperate with the government and to pay restitution to Rite Aid as ordered by the court. Findling’s plea agreement also obligated him to make a $11.6 million dollar, lump sum forfeiture payment to the government, which Findling turned over to the U.S. Marshal Service Asset Forfeiture Fund at the conclusion of the hearing.
The case was investigated by the Harrisburg Office of the FBI. Both defendants are being prosecuted by Assistant United States Attorney Kim Douglas Daniel assisted by David Clark, Litigation Financial Analyst.
Former Maricopa County Jail Inmate Sentenced for Tax FraudRead the Press Release
PHOENIX – On Feb. 9, 2015, Steven Scott Pearce, 57, of Phoenix, Ariz., was sentenced by U.S. District Judge Diane J. Humetewa to 33 months of imprisonment for preparing false tax refund claims while incarcerated at the Maricopa County Jail. Pearce pleaded guilty on Oct. 7, 2014, to conspiracy to file false claims.
As part of his plea agreement, Pearce admitted preparing federal income tax returns using other inmates’ names, social security numbers, and dates of birth, and then listing false income and tax withholding so that the Internal Revenue Service would issue a false refund. Pearce admitted working with others inside and outside the jail to help prepare the tax returns, mail the returns to the Internal Revenue Service, and cash refund checks. Pearce admitted that he prepared at least 17 tax returns claiming a total of approximately $285,000 in false tax refunds.
Most of the false tax refunds were identified before refunds were issued, and Pearce claimed at sentencing that he did not receive any profits. At the time, Pearce was serving a five year state prison sentence for unrelated crimes. Pearce’s 33-month sentence for the tax fraud scheme will be served consecutive to his state prison sentence.
The investigation in this case was conducted by the Maricopa County Sheriff’s Office and the Internal Revenue Service-Criminal Investigation. The prosecution was handled by James R. Knapp, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-0097-PHX-DJH
RELEASE NUMBER: 2015-011_Pearce
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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.
Former Jackson Tax Preparer Found Guilty of Tax FraudRead the Press Release
A Jackson tax preparer was found guilty yesterday of 20 counts of filing false tax returns today by a federal jury after a week-long trial, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Jarod Koopman, Internal Revenue Service Criminal Investigation.
Richard Alan Williams was found guilty of three counts of subscribing and filing false personal income tax returns for himself and 17 counts of assisting in the preparation and filing of false tax returns for his customers. The case was tried before U.S. District Judge Stephen J. Murphy, III.
At trial, witness testimony and exhibits established that Williams owned and operated Imperial Tax Service on Prospect Street in Jackson, and prepared and filed false tax returns for individuals for the 2004, 2006 and 2007 tax years. These returns claimed false business expenses or losses. The falsified items caused the taxpayers’ refunds to be larger than what they were entitled to by either reducing their taxable income with phony business expense losses or increasing the Earned Income Credit they were entitled to receive by adding the right amount of phony business income.
Additionally, Williams declared that his own income was only $1 in 2004; $2 in 2006; and $10 in 2007 when, in fact, he earned substantial fees for preparing tax returns during each of those years. The taxpayers who testified that Williams had prepared their returns, but had added phony business expenses or income, were unaware of the false items Williams had included to increase their refunds. However, a number of them have since been audited by the IRS and have been directed to pay back the excess refunds they received for those years along with penalties and interest.
A sentencing hearing was set for June 5. The maximum penalty for each offense of conviction is up to three years imprisonment, a $250,000 fine, and 1 year of supervised release.
"IRS Criminal Investigation focuses on protecting revenue by identifying, investigating and prosecuting abusive return preparers. This case accentuates the importance for taxpayers to carefully select a tax return preparer,” said Special Agent in Charge Koopman.
The case was investigated by Special Agents of the IRS Criminal Investigations and prosecuted by Assistant U.S. Attorneys Christopher Varner and Ross I. MacKenzie.
Former District of Columbia Technology Executive Pleads Guilty to Failing to Pay Employment TaxesRead the Press Release
The former operator of the wireless technology company Distributive Networks LLC (Distributive Networks) pleaded guilty today in federal court to willfully failing to pay more than $900,000 in employment taxes, Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division and the Internal Revenue Service (IRS) announced.
Kevin Bertram pleaded guilty to a criminal information filed in the U.S. District Court for the District of Columbia. According to court documents, Bertram operated Distributive Networks from 2004 through 2010. Distributive Networks was a wireless technology company located in the District of Columbia.
According to court documents, Bertram was responsible for Distributive Networks’ federal tax obligations and he failed to account for and pay employment taxes due and owed to the IRS. From late-2007 through mid-2009, Bertram failed to file IRS Forms 941 (Employer’s Quarterly Federal Tax Returns) and failed to pay $927,922 in employment taxes that he had withheld from his employees’ wages. These taxes included federal income, social security and Medicare taxes that the company was required to withhold from its employees’ wages, as well as the company’s portion of social security and Medicare taxes.
As a condition of the plea agreement, Bertram is required to make restitution to the IRS. Bertram also faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000. U.S. District Court Judge Amy Berman Jackson set sentencing for May 5.
The case was investigated by special agents from IRS-Criminal Investigation and prosecuted by Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Tax Division.
Former CFO Sentenced to 57 Months in Prison for Embezzling over $900,000 from Non-Profit EmployerRead the Press Release
SAN FRANCISCO - Robert Bradley Strahan, a/k/a Robin Bradley, a/k/a Kaola Bradley, was sentenced yesterday to 57 months in prison, and ordered to pay $1,105,481 in restitution for an embezzlement scheme, announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation Special Agent in Charge José M. Martinez.
Strahan, 51, of San Francisco, pleaded guilty on November 3, 2014, to wire fraud, mail fraud, and tax evasion. According to the plea agreement, Strahan admitted to embezzling more than $920,000 from a non-profit trade association in San Francisco where he worked as the chief financial officer. Strahan’s responsibilities included bookkeeping, payroll, and accounting. As the CFO, he had complete control over and access to the association’s books, records, and bank accounts. Without the knowledge or authorization of the non-profit trade association, Strahan wrote and cashed checks payable to himself and to “Cash” totaling over $550,000; he used the association’s credit cards to make unauthorized purchases totaling over $250,000; and he put an acquaintance on the payroll who received over $120,000 but did almost no work. To conceal the money that he embezzled, Strahan made false entries in the association’s accounting systems. Strahan also emailed false financial statements to the board of directors that omitted the funds he was taking for his personal use. Finally, Strahan did not pay income taxes on any of the money he embezzled for calendar years 2009 through 2013, resulting in tax due and owing to the Internal Revenue Service of over $175,000.
Strahanwas charged by superseding indictment on August 7, 2014, with three counts of wire fraud, two counts of mail fraud, and two counts of tax evasion.
The sentence was handed down by the Honorable Thelton E. Henderson, United States District Court Judge, in San Francisco, following guilty pleas to four counts – two counts of wire fraud, in violation of 18 U.S.C. § 1343, one count of mail fraud, in violation of 18 U.S.C. § 1341, and one count of tax evasion, in violation of 26 U.S.C. § 7201. Judge Henderson also sentenced the defendant to a 3 year period of supervised release and ordered the defendant to pay $1,105,481 in restitution to victims. Strahan was arrested on May 30, 2014, and has remained in custody since that time.
Hallie Mitchell Hoffman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Mary Mallory and Bridget Kilkenny. The prosecution is the result of an investigation by the FBI and the IRS, Criminal Investigation.
Former Assistant Vice President of Bank Indicted for Bank Fraud and Embezzling more than $1 MillionRead the Press Release
NEWARK, N.J. - A former bank assistant vice president was indicted today by a federal grand jury in connection with a scheme to embezzle more than $1 million while she worked at a bank in Fort Lee, New Jersey, U.S. Attorney Paul J. Fishman announced.
Miye Chon, a/k/a/ “Karen Chon,” 34, of Englewood Cliffs, New Jersey, was charged with one count of bank fraud and 27 counts of theft, embezzlement or misapplication of funds by a bank officer or employee.
According to documents filed in this case and statements made is court:
Chon was employed by BankAsiana, a federally insured financial institution, as an operations officer and later as an assistant vice president and operations officer at the bank’s Fort Lee branch until the bank was acquired by Wilshire Bank in October 2013. Chon had access to customer accounts and the bank’s internal account records, computer system and vault. Over several years, Chon stole more than $1 million from BankAsiana’s customer accounts by regularly making unauthorized transfers from customer certificate of deposit (CD) accounts into BankAsiana’s vault cash account and then physically removing cash from the bank’s vault.
BankAsiana’s successor began an internal investigation after a customer found problems with the customer’s tax forms and account records. The bank discovered that Chon had accessed BankAsiana’s computer systems using her unique account access credentials on multiple occasions in order to make unauthorized transfers from customer CDs to the bank’s vault account and then removing the cash. Chon had avoided detection by making false entries in the bank’s records and by taking steps to transfer money back into customer CDs before they were set to reach maturity. She would transfer funds from newer CDs at the bank into maturing CDs that were short funds as a result of her having previously transferred money out of them.
Chon accomplished this scheme on dozens of occasions, typically taking tens of thousands of dollars at a time. One time, she converted $100,000 from a customer’s CD account. Bank records further show that during just one week between Sept. 27, 2013 and Oct. 4, 2013, Chon’s last day working at the bank, she made multiple unauthorized transfers from customer accounts in amounts totaling approximately $1.2 million to cover losses in other customer accounts that she had previously looted as part of the scheme. According to the successor bank’s investigation, the scheme resulted in a $1.4 million loss to the bank.
Chon faces a maximum potential sentence of 30 years in prison on each count and a fine of $1 million, or twice the gross gain or loss resulting from the scheme, as well as mandatory restitution in the full amount of the loss to the victim bank.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel, with the investigation leading to today’s indictment.
The charges in the indictment against Chon are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorney Paul A. Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit.
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Defense counsel: Matthew Jeon Esq., Fort Lee
Federal Jury Convicts Man of Possessing Firearm with Obliterated Serial NumberRead the Press Release
St. Thomas, USVI- After a two-day trial in District Court on St. Thomas, a federal jury today found Jace Clendinen, 31, guilty of possessing a firearm with an obliterated serial number, announced United States Attorney Ronald W. Sharpe.
According to the evidence presented at trial, on September 1, 2014, officers of the Virgin Islands Police Department were in the area of the Smith Bay Ballpark during Labor Day J’Ouvert activities when they witnessed an ammunition magazine fall from a flatbed truck carrying the band. Officers ordered everyone off of the truck to determine who had a firearm. Clendinen jumped from the truck and rapidly walked away from the officers. Officers pursued Clendinen and discovered a Fabrique Nationale firearm with an obliterated serial number in Clendinen’s pant leg.
Clendinen’s sentencing is scheduled for May 25, 2015. He faces a maximum sentence of five years in prison and a $250,000 fine.
United States Attorney Sharpe commended the efforts of the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives who investigated the case. The case was prosecuted by Assistant U.S. Attorneys Everard E. Potter and Segrid T. Sprotte.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803)929-3000
Greenville, South Carolina ----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following: Foreign Nationals Charged with Illegal Re-entry
Evaristo Sanchez-Lozano, Margarito Pascual-Magana, and Abner Diaz-Lopez were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by U.S. Immigration and Customs Enforcement (ICE) agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803)929-3000
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following: Charleston Man Indicted for Investment Fraud
Robert C. Jordan, age 64, of Charleston, South Carolina, was charged in a 6-count Indictment for Wire Fraud and Making a False Statement on a Loan Application, a violation of 18 U.S.C. §§ 1343 and 1014. The maximum penalty that Jordan could receive is 30 years imprisonment and a maximum fine of $1 million. The case was investigated by agents of the FBI and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
St. Stephen Man Indicted for Theft of Government
Jerome Ravenell, age 58, of St. Stephen, South Carolina was charged in a 1-count Indictment for Theft of Government Property, a violation of 18 U. S. C. § 641. The maximum penalty that Ravenell could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Social Security Administration and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Englewood Man Charged with Conspiracy to Commit Bank FraudRead the Press Release
A criminal information was filed charging Lawrence Cline, 62, of Englewood, Ohio, with conspiracy to commit bank fraud and bank fraud related to the sale of four homes in Toledo, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The conspiracy took place from at least November 2005 through July 2006, according to court documents.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service-Criminal Investigations, Toledo, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Duval County Man Sentenced to Prison for Identity Theft and Counterfeit ChecksRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Larry Bernard Taylor (49, Jacksonville) to 20 months in federal prison for identity theft and aiding and abetting the attempted passing of counterfeit checks. He pleaded guilty on November 13, 2014.
According to court documents, on February 26, 2014, the Florida Highway Patrol (FHP) conducted a traffic stop of a vehicle Jasper Shields was driving on Interstate 95 in Duval County. Larry Bernard Taylor was a passenger in the vehicle. When asked for identification, Taylor identified himself as L.C. and provided a Florida Identification Card to the FHP trooper in the name of L.C. After further questioning, Taylor admitted his true identity. Shields subsequently provided consent for a vehicle search, during which officers located 12 counterfeit business checks purportedly issued from Walgreens. The checks were made out to three different payees, in various amounts.
On February 2, 2015, Shields was sentenced to 57 months in federal prison for his role in the scheme to pass counterfeit business checks and for violating his supervised release.
This case was investigated by the United States Secret Service North Florida High-Tech Crime Task Force and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
District Court Enters Permanent Injunction Against San Francisco Soy and Tofu Company and Senior Officers to Stop Distribution of Adulterated ProductsRead the Press Release
The U.S. District Court for the Northern District of California entered a consent decree of permanent injunction against Fong Kee Tofu Co. Inc., Yan Hui Fong, the firm’s co-owner and chief executive officer, and Jen Ying Fong and Suny Fong, co-owners and corporate officers, to prevent the distribution of adulterated tofu and other soy food products, the Department of Justice announced today.
The department filed a complaint in the Northern District of California on Jan. 23 at the request of the U.S. Food and Drug Administration (FDA). The complaint alleges that the defendants have a history of processing soy food products under insanitary conditions. As detailed in the complaint, the company receives, prepares, processes, manufactures, labels, packs, holds and distributes soy food products including soy drinks, firm tofu, soft tofu, fried tofu balls (oil bean cake) and soybean cake. The complaint also alleges that Yan Hui Fong, Suny Fong and Jen Yin Fong are Fong Kee Tofu’s corporate officers with the authority and responsibility for preventing and correcting violations of federal law at the company.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and to be bound by a permanent injunction that requires Fong Kee Tofu to cease all operations and requires that if the defendants wish to resume manufacturing and distributing food in the future, the FDA first must determine that the firm’s manufacturing practices have come into compliance with the law.
“Fong Kee Tofu was repeatedly informed that the sanitation practices at its facility were deficient,” said Acting Assistant Attorney General Joyce R. Branda of the Justice Department’s Civil Division. “The failure to make sure that its facility was operating under sanitary conditions could be a serious risk to the public health and needed to be remedied.”
According to the complaint, FDA inspectors in 2014 observed pigeons on top of plastic-wrapped raw soybean pallets and they observed insects flying around the area used to process firm tofu. The complaint further alleges that employees were observed using utensils that had not been properly sanitized in food production and packing tofu without washing or sanitizing their hands after coming into contact with insanitary objects. In addition, according to the complaint, residue was observed on equipment used in processing tofu even after the equipment had been cleaned. Under federal law, food manufacturers are required to comply with current good manufacturing practices to ensure that all food distributed into interstate commerce is not adulterated.
The government is represented by Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Counsel for Enforcement Deeona Gaskin of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.
Defendants Sentenced in Drug Distribution ConspiracyRead the Press Release
WICHITA FALLS, Texas — Two defendants, who pleaded guilty in June 2014 to their respective roles in a crack cocaine/cocaine powder distribution conspiracy that operated in Wichita Falls and McAllen, Texas, have been sentenced, announced John Parker, Acting U.S. Attorney for the Northern District of Texas..
Yesterday, U.S. District Judge Reed C. O’Connor sentenced Rodolfo Trevino, 34, of Wichita Falls, to a 97-month term of imprisonment. Trevino pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine base and one count of money laundering. Judge O’Connor also ordered that Trevino forfeit a residence located in the University Park subdivision in Wichita Falls, a Land Rover Range Rover, a Hummer H2, a firearm and assorted ammunition.
In mid-December 2014, Judge O’Connor sentenced co-defendant Rene Villastrigo, Jr., 34, also of Wichita Falls, to 30 months in federal prison. He pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine.
Beginning sometime in 2012 and continuing to April 18, 2014, Trevino and Villastrigo conspired together and with Senobio Ortiz, Jr., of McAllen Texas, and others, to possess with the intent to distribute cocaine and cocaine base. Ortiz has pleaded guilty to one count of conspiracy to possess with the intent to distribute cocaine, and he is scheduled to be sentenced in April 2015.
According to court documents, Trevino traveled frequently to McAllen, where he recruited Ortiz to regularly transport cocaine and marijuana from McAllen to Wichita Falls. Trevino also recruited Villastrigo to rent a residence in Wichita Falls to store and repackage the cocaine and marijuana for distribution. Trevino used this residence to convert the powder cocaine into crack cocaine.
Trevino deposited the drug proceeds he acquired into bank accounts in Wichita Falls and withdrew those deposits in the McAllen area, intending for these financial transactions to conceal his drug trafficking activity.
On April 18, 2014, law enforcement executed a search warrant at a residence in Wichita Falls where Trevino and Villastrigo manufactured crack cocaine. Both Trevino and Villastrigo were present at the time, and officers found approximately 250 grams of cocaine base and eight packages of marijuana, each weighing more than one pound. Officers found a firearm during a search of Trevino’s girlfriend’s home, and they found ammunition for the firearm at Trevino’s home.
The FBI’s Safe Streets Task Force (SSTF), Wichita Falls Police Department, and Internal Revenue Service Criminal Investigation investigated. Assistant U.S. Attorney Suzanna Etessam prosecuted the criminal case, and Assistant U.S. Attorney John de la Garza prosecuted the forfeitures.
Convicted Sex Offender Pleads Guilty to Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Rodney Joel Neal (53, Montezuma, Georgia) has pleaded guilty to failing to register as a sex offender. He faces up to 10 years in federal prison and a $250,000 fine. Neal has been in custody since his arrest on October 10, 2014.
According to court documents, in May 1988, Neal was found guilty and sentenced for committing aggravated child molestation and child molestation in Macon County, Georgia. In July 2014, he moved from Georgia to Jacksonville, but failed to register as a sex offender in Florida, as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the Jacksonville Sheriff’s Office, the United States Marshals Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Community Book Discussions Aim to Spark Conversations, Understanding Across Racial DivideRead the Press Release
Local civic and social organizations are breaking racial, ethnic and religious boundaries by discussing Tanner Colby's Vestavia Hills-based book, Some of My Best Friends Are Black: The Strange Story of Integration in America. Discussions begin Sunday throughout the metro area.
The effort is the brainchild of Bettina Byrd-Giles, chief executive officer of Bethesda Life Center Inc. in Ensley, who has worked with race relations efforts in Birmingham for more than 20 years. As Bethesda's CEO, she has seen the devastating effects of de facto segregation first hand. Byrd-Giles sought and received support in organizing the community discussions from the Community Affairs Committee of REV Birmingham and U.S. Attorney Joyce White Vance.
"One of the many lessons we have learned from the tragedy in Ferguson is that communities have to be unafraid to talk openly about the difficult and sometimes painful issue of race," Vance said. "Open discussion can diminish the lack of racial tolerance and understanding," she said. "I am proud to be part of a community where so many people, from so many walks of life, are willing to come together with people they don't know in order to build better relationships and, ultimately, a stronger community."
"The doors are open; let us continue to dialogue truthfully. It is about more than just color, it is how and why people see what they see in others," said CAC Co-Chairwoman Alice Westery. At the pilot discussion Feb. 4 at the CAC Race Relation Round Table on Some of My Best Friends are Black, "the group that I facilitated continued to bring up the need to understand that black people, and all minorities, can feel it when they are not accepted or properly acknowledged as a human being with human rights," Westery said.
This year's annual Martin Luther King Jr. Unity Breakfast, where Colby was the keynote speaker, kicked off the February community book discussion. Participants have two avenues to get involved with the discussion. The first option is to organize a discussion in which one group invites a similar group or organization of a different culture to participate. The plan is for groups to have as much in common as possible, and facilitators will assist the discussion. The expectation is that these discussions will yield specific action steps to address de facto segregation. These matched group discussions are taking place Sunday through Feb. 21, and at least 20 are registered.
Some of the pairings include Sisters Chaverim, which is a group of Jewish and African American leaders. The Birmingham Alumnae Chapter of Delta Sigma Sorority Inc. is hosting The Junior League of Birmingham. The Rotary Club of Birmingham is hosting several African American civic leaders at a discussion at Taj India restaurant. The Vestavia community is also planning a discussion.
A second option is for people to join an open discussion in one of several metro area locations Feb. 22 - 28. The events will be led by experienced race relations facilitators who were former Anytown, AL, or National Coalition for Community Justice staff. There are two discussions targeted to the under-40 crowd. For locations and times, please visit Birmingham Magic City Crossings at this site: https://www.eventbrite.com/d/local/magic-city-crossings/. There is no cost for participating, but it is requested that participants read at least Parts I & II of Some of My Best Friends are Black.
The anticipated outcome is to discuss how the community remains segregated, despite the strides of the Civil Rights Movement to eliminate legalized racial segregation. Participants will be asked what they can do, personally and collectively, to address de facto segregation in the Birmingham metro area. The results will be collected by the facilitators and discussed to see what the next steps will be.
For more information, please contact Bettina Byrd-Giles [email protected]
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