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Wednesday 17 December 2014
Former Charlotte Resident Indicted on Securities and Wire Fraud ChargesRead the Press Release
CHARLOTTE, N.C. – On Tuesday, December 16, 2014, a grand jury sitting in Charlotte returned a federal indictment against Michael Francis Egan, III, 32, formerly of Charlotte, charging him with securities fraud and wire fraud in connection with a fraudulent investment scheme, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to allegations contained in the criminal indictment, from August 2007 to February 2012, Egan engaged in a fraudulent investment scheme by inducing his victims to enter into various fictitious business and investment contracts. The indictment alleges that Egan promised that he would invest the victims’ money in various projects, such as Halloween themed attractions, holiday themed attractions, land development and investment deals, and television shows, among others, when, in reality, Egan did not invest victims’ money as promised. According to allegations contained in the indictment, Egan further induced his victims to invest with him by lying about his financial background and personal assets. For example, the indictment alleges that Egan forged brokerage account statements to reflect fraudulent balances when, in reality, those accounts had no money or a fraction of the purported amount.
According to allegations contained in the indictment, Egan also lied to his investors about his professional connections and his investments. For example, as alleged in the indictment, Egan falsely told his victims he was a close associate and friend of the CEO of a major bank, a close associate or employee of a well-known investment mogul and that he owned a percentage of well-known hotels and casinos in Las Vegas. According to the indictment, instead of investing the victims’ money as promised, Egan used it to fund his lifestyle and to pay for personal expenses such as rent, his car lease, groceries, restaurants medical bills and pet care, among others.
Egan will be ordered by the U.S. District Court to appear on a summons for his initial appearance, which will be scheduled by the Court. If convicted, Egan faces a maximum of 20 years in prison and a $5 million fine for the securities fraud count and a 20 year prison term and a $250,000 fine for the wire fraud count.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case. The prosecution is being handled by Assistant U.S. Attorney Kevin Zolot of the Western District of North Carolina.
Final Member of Crack Cocaine Conspiracy SentencedRead the Press Release
HARRISONBURG, VIRGINIA – A Florida man, who along with eight other individuals conspired to sell large quantities of crack cocaine in the Winchester, Va. area, was sentenced this morning in the United States District Court for the Western District of Virginia in Harrisonburg.
Ethan Edward Jackson, 26, of Winchester, Va. and Clewiston, Fl., pled guilty in January 2014 to one count of conspiring to distribute and possess with the intent to distribute more than 280 grams of crack cocaine. This morning in District Court, Jackson was sentenced to 120 months’ imprisonment and five years of supervised release.
“These defendants operated a sophisticated illegal business importing dangerous drugs into our community,” United States Attorney Timothy J. Heaphy said today. “We must do all we can to punish those who profit from the addiction of others. We must also pursue education and treatment programs to reduce the demand for illegal drugs. A comprehensive approach is necessary in our continuing struggle to stem the flow of illegal drugs into our communities.”
In all, nine individuals have been convicted of trafficking large amounts of crack cocaine from Florida to the Winchester area for distribution. The crack cocaine brought into Winchester was sold in usually $50-$250 quantities and was sold to both end-users and other distributors. Members of the conspiracy made multiple runs to Florida per month and often operated out of hotels in the Winchester area. They traveled together, stayed in hotel rooms near one another and provided drugs to each other to further the conspiracy. One co-conspirator, Jeremiah Dion McMillan, was also transporting pressed heroin – heroin that had been compressed into pill form to resemble prescription pills – and prescription pills to the area and selling them here. Another co-conspirator, Johnny Lewis Hunter, transported and distributed powder cocaine in addition to crack cocaine from Florida.
Previously sentenced for their roles in the conspiracy are Kareem Lomax Robinson, 204 months; Bobby Clyde Stewart Jr., 180 months; Jeremiah Dion McMillian, 132 months; Johnny Lewis Hunter, 120 months; Lacy Leann Shuck, 120 months; Andrew James Thomas, 120 months; Wendal Anthony Ferguson, 96 months; Susan Ann Ruppenthal, 24 months.
The investigation of the case was conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg. Assistant United States Attorney Elizabeth Wright prosecuted the case for the United States.
Final Defendant Charged in Curry County Drug Trafficking Ring Enters Guilty PleaRead the Press Release
ALBUQUERQUE – Tina Tafoya, 33, of Clovis, N.M., pleaded guilty today to participating in a methamphetamine trafficking conspiracy in Curry County, N.M. Tafoya is the last of four defendants to enter a guilty plea in this case.Tafoya and her three co-defendants, Christopher Jason Kidd, 38, and John Jesse Perez, Jr., 45, both of Clovis, N.M., and Jeannette Driever, 37, of Grady, N.M., were indicted in Feb. 2014, on federal methamphetamine trafficking charges. Count 1 of the three-count indictment charged that the four defendants conspired to distribute methamphetamine in Curry County, N.M., between Sept. 2013 and Nov. 2013. Count 2 charged Kidd and Tafoya with possession of methamphetamine with intent to distribute on Nov. 6, 2013, and Count 3 charged Driever and Perez with possession of methamphetamine with intent to distribute on that same day.
In entering her guilty plea, Tafoya admitted conspiring with Kidd, Driever and Perez to distribute methamphetamine in Curry County in fall of 2013. Tafoya has been in federal custody since her arrest. She remains in custody pending her sentencing hearing which has yet to be scheduled. Under the terms of her plea agreement, Tafoya will be sentenced to 78 months in federal prison followed by five years of supervised release.
Kidd entered his guilty plea on Nov. 17, 2014, and admitted conspiring with his co-defendants to distribute methamphetamine in Curry County. Kidd admitted that he and Tafoya supplied quantities of methamphetamine to others, including Driever and Perez, who resold the methamphetamine in smaller quantities to users. According to Kidd’s plea agreement, on Nov. 9, 2013, Kidd and Tafoya supplied a pound of methamphetamine to Driever and Perez. On that day, Kidd and Tafoya possessed another half-pound of methamphetamine at their residence. The methamphetamine was seized later that day pursuant to search warrants.
Driever and Perez entered guilty pleas to federal drug trafficking charges on Nov. 20, 2014. Each pleaded guilty to participating in a conspiracy to distribute methamphetamine in Curry County. Driever admitted that she and Perez obtained quantities of methamphetamine from Kidd and Tafoya that they distributed to others. Perez acknowledged participating in a methamphetamine trafficking conspiracy that involved Driever, Kidd, Tafoya and others.
Tafoya’s co-defendants will be sentenced to the following terms of incarceration under the terms of their respective plea agreements: Kidd will serve 78 months; Driever will serve 60 months; and Perez will serve 36 months. Each will serve a five year term of supervised release after completing his or her prison sentence. All three remain in custody pending their sentencing hearings, which have not been scheduled.
This case was investigated by the Las Cruces Agency Office of the FBI’s Albuquerque Division, the Region V Drug Task Force and the New Mexico State Police, with assistance from the Ninth Judicial District Attorney’s Office. The Region V Drug Task Force is comprised of the Clovis Police Department, the Portales Police Department, Curry County Sheriff’s Office and the Roosevelt County Sheriff’s Office. Assistant U.S. Attorney Nicholas Jon Ganjei is prosecuting the case.Fifteen Charged in Third Wave of Federal Drug Trafficking Money Laundering, and Firearm Violation IndictmentsRead the Press Release
Follow @NDFLNewsPENSACOLA—Thirteen individuals from the Houston, Texas, and Pensacola areas were jointly indicted on federal drug trafficking and money laundering violations. They include:
Rodney D. Butler, 48;
Vernetta E. Harrison, 31;
Aston Ingram, 49;
Antonio Blackwell, 30;
Anthony Fisher, Jr., 25;
Terrance D. Goodman, 38;
Dexter A. Locke, 26;
Michael A. McCants, 27;
Lamarcus D. Ries, 28;
Rodney D. Ries, 26;
Nastassja N. Sassau, 27;
Charlie N. Steans, 47; and
Terrance T. Stone, 33.In conjunction with this thirteen co-defendant indictment, Darius D. Williams, 24, and Marheem R. Smith, 23, of Pensacola, were separately indicted on related federal firearms charges. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
First appearances will take place before United States Magistrate Judges in Pensacola, Florida, and Houston, Texas, and a projected trial date is February 2015 in Pensacola.
These indictments are part of a continuing investigation into the transportation of cocaine from Texas into the Northern District of Florida. U.S. Attorney Marsh praised the work of the Drug Enforcement Administration; Homeland Security Investigations; the Internal Revenue Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Escambia County Sheriff’s Office; the Santa Rosa County Sheriff’s Office; the Gulf Breeze Police Department; the Pensacola Police Department; and the State Attorney’s Office, whose joint investigation led to the indictments in the case. The cases are being prosecuted by Assistant U.S. Attorney David L. Goldberg.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial in a court of law.The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. Our office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Federal Inmate Charged in Connection with an Assault of Another InmateRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Federal Grand Jury in Scranton has returned a three-count indictment charging an inmate at the United States Penitentiary at Canaan, Pennsylvania, with participating in an assault of another inmate with dangerous weapons. James Banks, age 33, formerly of Tennessee, was charged with assault, conspiracy to commit assault, and with the illegal possession of a weapon by an inmate.
According to United States Attorney Peter Smith, the victim was another inmate who was stabbed by Banks’ coconspirator with a sharpened weapon commonly referred to as a shank. Banks allegedly participated in the assault by attempting to strike the victim with a lock attached to a length of cloth during the attack.
On December 4, 2014, Senior United States District Court Judge Richard P. Conaboy sentenced Banks’ coconspirator, Johnnie Williams, age 36, formerly of Memphis, Tennessee, to 30 months’ imprisonment for stabbing the victim. On September 10, 2014, Williams pleaded guilty to conspiracy to commit the assault.
The case was investigated by the FBI and the Special Investigation Section at USP-Canaan. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is ten years’ imprisonment for the assault, and five years’ imprisonment for the conspiracy charge and the weapon possession charge. Banks also faces a term of supervised release following imprisonment, and a fine if convicted. 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.
****Essex County, New Jersey, Tax Return Preparer Sentenced to 57 Months in Prison for Filing Tax Returns Using a Dead Person's IdentityRead the Press Release
Obtained More Than $350,000 in Fraudulent Tax Refunds
NEWARK, N.J. – An Essex County, New Jersey, tax return preparer was sentenced today to 57 months in prison for filing false claims with the IRS using a dead tax return preparer’s identification and preparing false documents for numerous fraudulent loans, U.S. Attorney Paul J. Fishman announced.
Todd P. Halpern, 49, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of filing false claims and one count of wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements in court:
In late 2008, Halpern purchased A & V Financial (A & V), a tax return preparation business located in Guttenberg, New Jersey, from the wife of the prior owner, identified only as “V.R.,” who had died in March 2008. Halpern received the company’s computers and all of its client records. As part of the agreement to purchase A & V, Halpern was to obtain a new Electronic Filing Identification Number (EFIN) in his own name. Instead, he continued to file tax returns using V.R.’s EFIN number because Halpern’s criminal record prevented him from obtaining an EFIN.
From 2009 through 2010, Halpern prepared and filed 657 fraudulent federal income tax returns with the IRS using V.R.’s EFIN. Halpern prepared and filed some of these fraudulent tax returns without the knowledge and authorization of the taxpayers identified on the returns. Some of these tax returns contained fraudulent income and deduction amounts, which generated fraudulent refunds that were directly deposited into Halpern’s bank account.
On June 24, 2009, Halpern prepared and filed a fraudulent 2008 U.S. Individual Income Tax Return 1040 form with the IRS in the name of B.G., which fraudulently claimed an income tax refund in the amount of $13,183. The 2008 1040 form prepared by Halpern contained false income and deduction entries for B.G., because B.G. did not have any income for that tax year and did not file an income tax return. The $13,183 tax refund was directly deposited into Halpern’s bank account.
Halpern received a total of $373,938 in fraudulent tax refunds. He used these funds to support his lavish lifestyle, including purchases at Prada, Chanel, Saks Fifth Avenue, and Bloomingdales, to acquire season tickets to the New York Giants, to purchase thousands of dollars in jewelry, gold coins, and silver certificates, to make car payments on multiple luxury vehicles, including a 2007 Cadillac Escalade and a 2008 Lexus GX-470, and to buy parts for his classic 1957 Chevy Bel Air.
From January 2008 through May 2012, Halpern prepared false documents for numerous fraudulent loans from financial institutions. Halpern prepared tax returns, W-2 forms, and bank statements showing inflated income and asset balances to be used to support loan applications for borrowers, including him, to acquire mortgage loans, primarily involving residential properties in New Jersey, as well as other personal and business loans. Halpern and others caused the fraudulent documents to be submitted to mortgage lenders, other financial institutions, the U.S. Department of Housing and Urban Development, and the Federal Housing Administration (FHA), which were relied upon for the approval of mortgage and other loans.
In November 2009, Halpern served as the buyer for the short sale of 215 Newark Ave., Bloomfield, New Jersey, from seller B.S. for a purchase price of approximately $185,000. In support of Halpern’s purchase of this property, an FHA-insured mortgage loan for Halpern in the amount of $181,649 was obtained from a New Jersey-based mortgage company. Halpern and others submitted numerous fraudulent documents to FHA and to the mortgage company, including false bank statements, pay stubs and 2008 federal income tax returns in Halpern and his wife’s names. As in his tax fraud scheme, the false tax returns that Halpern prepared reflected V.R.’s identification number in an effort to conceal that Halpern had personally prepared the tax returns.
At the plea hearing, the Judge Martini also entered a consent judgment and order of forfeiture for $373,938 and for a classic 1957 Chevy Bel Air, which constitutes the proceeds that Halpern obtained as a result of his frauds. In addition to the prison term, Judge Martini also sentenced Halpern to serve five years of supervised release and pay restitution of $1.3 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Cary Rubenstein, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Criminal Division in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Marshall J. Wofsy Esq., Jersey City, N.J.Elyria Man Sentenced to 20 Years in Prison for Selling Heroin and Fatal FentanylRead the Press Release
An Elyria man was sentenced to 20 years in prison for distributing heroin and fentanyl, including fentanyl that caused the death of an Elyria resident last year, law enforcement officials said.
The sentence announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, Ohio Attorney General Mike DeWine and Elyria Police Chief Duane Whitely.
Siarres R. Noble, age 29, pleaded guilty earlier this year to four counts of distribution of fentanyl, two counts of distribution of heroin and one count of possession with intent to distribute fentanyl.
Noble admitted selling heroin and fentanyl at various times in March and November 2013, including fentanyl that he sold on November 8, 2013, which resulted in the death of an Elyria resident one day later.
“The drugs sold by this defendant killed a woman,” Dettelbach said. “Heroin and fentanyl use leads to death, destroys lives and damages families. This should send a clear message to drug dealers who are doing nothing more than selling poison, that we in law enforcement will work death and overdose cases back from the victims, identify who supplied them the drugs and hold them accountable for their actions.”
“Siarres Noble did not just sell heroin – he sold poison and a woman is dead because of his actions,” Anthony said. “Today’s sentence demonstrates the seriousness of these cases and the strength of our commitment to working them with our local partners.”
“There will be consequences for those who continue to feed addiction in this state, and as today’s sentence makes clear, dealers will be held accountable for deaths caused by their drug sales,” said Attorney General DeWine. “Law enforcement will continue to collaborate on the state, federal, and local level to hold drug dealers and those who assist them responsible.”
Elyria Police Chief Duane Whitely said: “There is a serious drug problem in this country and it is important that law enforcement at every level take the steps necessary to combat the sales of illegal drugs. Sadly, in this case, the sale of drugs led to someone’s death. The weapon used may not have been a gun, but it is just as deadly.
“I want to thank everyone involved in this case for the effort they put into it. Starting with the response from Elyria Police Investigative Unit for responding so quickly to the spike in overdoses that led to the arrest of Siarres Noble for selling the drugs that led to the death. I appreciate the great working relationship with have with the FBI and the U.S. Attorney’s office. It is the strong working relationship between all of these agencies that led to the federal conviction of Siarres Noble,” Whitely said.
This case was investigated by the Elyria Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Robert F. Corts and Vasile C. Katsaros and Special Assistant United States Attorney Margaret Tomaro of the Ohio Attorney General’s Office.
Eleven Indicted in Heroin and Cocaine Distribution RingRead the Press Release
KNOXVILLE, Tenn. – On Dec. 16, 2014, a federal grand jury returned a one-count indictment against 11 individuals for conspiracy to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin and five kilograms or more of a mixture and substance containing a detectable amount of cocaine. Those indicted include:
Jerome Boone, 58, of Long Island, N.Y.; David Mayes, 57, of Blount County, Tenn.; Robert Cannon, 53, of Blount County, Tenn.; Jenni Fair, 40, of Blount County, Tenn.; Oliver Hicks, 46, of Blount County, Tenn.; Ladonald Hodge, 52, of Blount County, Tenn.; Joshua Kruse, 35, of Blount County, Tenn.; Joshua Millward, 41, of Blount County, Tenn.; Loretta Templeton, 49, of Blount County, Tenn.; William Templeton, 52, of Blount Count, Tenn.; and Gordon Yearwood, 56, of Brooklyn, N.Y.
All have been arrested and appeared in U.S. District Court. All except Gordon Yearwood have been held without bond pending trial set for Feb. 10, 2015, before the Honorable Thomas A. Varlan, U.S. District Judge.
If convicted, each faces a prison term of at least 10 years and up to life, a term of supervised release of at least 5 years and up to life, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment.
The indictment and supporting documentation are on file with the U.S. District Court in Knoxville, alleges that the conspiracy occurred between January and December 2014.
These arrest and charges are the result of an investigation by the Fifth Judicial Drug Task Force, which consists of officers and investigators from the Blount County Sheriff’s Office, Maryville Police Department and Alcoa Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Cynthia Davidson will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
East Windsor Woman Sentenced to 51 Months in Prison for Defrauding Mass Mutual, Other EmployersRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THERESA SUTHERLAND, 34, of East Windsor, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 51 months of imprisonment, followed by three years of supervised release, for engaging in a fraud and identity theft scheme.
According to court documents and statements made in court, SUTHERLAND was employed by Mass Mutual Financial Group as a claims examiner in the company’s Enfield office. Mass Mutual offers full-time employees up to $8,500 in college tuition reimbursement and up to $5,000 reimbursement for the expenses associated with the adoption of a child. SUTHERLAND and other Mass Mutual employees defrauded the company by submitting numerous fraudulent claims for tuition reimbursement and adoption expenses. In association with the fraudulent claims for adoption expenses, SUTHERLAND and her co-conspirators submitted birth certificates and Social Security numbers of actual children who were not their own.
SUTHERLAND and her co-conspirators received approximately $240,000 in fraudulent reimbursements during the conspiracy, and SUTHERLAND specifically received more than $75,000.
The investigation revealed that SUTHERLAND defrauded three other employers in addition to Mass Mutual. Judge Covello ordered her to pay total restitution of $400,000 to Mass Mutual and these former employers.
On November 19, 2013, SUTHERLAND pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
Four other former employees of Mass Mutual were charged as a result of this investigation.
This investigation is being conducted by the Connecticut Financial Crimes Task Force, including the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury forAssault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Julius Titus III, age 35, was indicted on December 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 11, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 26, 2014, at Eagle Butte, Titus unlawfully assaulted two victims. He is alleged to have assaulted the first victim with shod feet, a door, and a frying pan, causing serious bodily injury to that victim. On the same day, Titus assaulted the second victim, an intimate partner, and the assault resulted in substantial bodily injury to that victim as well.
The charges are merely accusations and Titus is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Titus was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Dougherty County School Teacher Pleads Guilty to Child Pornography ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Brian O. Brannen, aged 41, formerly of Albany, Georgia, entered a guilty plea to one count of possession of child pornography on December 15, 2014, before the Honorable W. Louis Sands, U.S. District Court Judge, in Albany, Georgia.Based on facts related by a person who had stayed briefly at Mr. Brannen’s residence that child pornography had been seen there and on Mr. Brannen’s computer, officers of the Dougherty County Sheriff’s Office obtained and executed a search warrant on that residence and computer. They found numerous images of child pornography indicating involvement with same by Mr. Brannen since at least 2007. The Department of Homeland Security became involved in the investigation and subsequently determined that the computer contained 24 video files depicting child pornography.”
Mr. Brannen will be sentenced in about 60 days. He faces a maximum possible sentence of twenty (20) years imprisonment, a maximum fine of $250,000, or both. He will also be required to register as a sex offender.
“Child pornography is a scourge that makes victims of the most innocent members of our society. I commend the investigators in this case for their diligence in uncovering the participation of Mr. Brannen in this illegal activity,” said U.S. Attorney Michael Moore.The case was investigated by Captain Craig Dodd and Lieutenant Julie Wood, with the Dougherty County Sheriff’s Office, with assistance from the U.S. Department of Homeland Security. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Defendant Sentenced in International Multi-Million Dollar Conspiracy to Manufacture and Distribute Designer DrugsRead the Press Release
Largest Synthetic Drug Prosecution in the District of OregonPORTLAND, Ore. – Ryan Ahidjou “Bo” Scott, 34, of Lake Oswego, Oregon, was sentenced by Honorable Ancer L. Haggerty to 96 months in prison following his convictions for conspiracy to distribute controlled substances and conspiracy to commit money laundering. The convictions stemmed from his role in leading an international drug-trafficking organization responsible for distributing over $5 million of synthetic designer drugs. The defendant was charged in federal court in May 2012, and pled guilty on May 27, 2014.
“This long-term investigation took down one of the largest synthetic drug manufacturers on the West Coast,” said U. S. Attorney Amanda Marshall. “These synthetic designer drugs are dangerous and we are fortunate to have partner agencies – HSI, IRS, and the DEA – who are committed to stopping the distribution of these poisons to our kids.”
The investigation began in 2011 when Customs and Border Protection (CBP) agents detected suspicious shipments imported from Peru destined for defendant Ryan Bo Scott’s company KTW Enterprises. Agents with Homeland Security Investigations (HSI), working with the Portland Police Bureau (PPB), executed a search warrant at defendant’s company in April 2011. There, they seized over 500 pounds of synthetic drug products packaged in 1 gram packets labeled as “K2” and “not for human consumption.” During the next several months, forensic experts employed by the Drug Enforcement Administration (DEA) confirmed the presence of over a dozen types of chemical compounds in the seized drug products that were both scheduled drugs and analogues of the same.
Through the remainder of 2011 and into early 2012, HSI and IRS agents, working closely with financial analysts from the Organized Crime and Drug Enforcement Task Force (OCDETF), gathered evidence that Scott was running a worldwide drug trafficking and money laundering conspiracy selling various synthetic designer drugs. Members of the conspiracy mixed chemical compounds together with herb extracts and marketed the resulting “K2” products as “incense.” Additionally, the defendants used the internet to market and distribute “K2” and purchased dozens of domain names, including “k2drugs.com” and “k2incense.org” to obtain a monopoly on the market for K2. The investigation culminated on May 15, 2012, with the execution of search warrants at the defendants’ residences and a warehouse in Vancouver, Washington, where agents seized hundreds of pounds of dried plant materials, packaging equipment, and chemicals. Pictures from the search warrants are attached:
The harmful and sometimes fatal consequences of synthetic drugs have been gaining attention nationally and beyond. In March 2011, the United States Drug Enforcement Administration (DEA) exercised its emergency scheduling powers placing these synthetic cannabinoids into Schedule I of the Controlled Substances Act (CSA) because it was necessary to avoid an imminent hazard to the public safety. Schedule I is the most restrictive category under the Controlled Substances Act, and it is reserved for those substances with a high potential for abuse, no accepted medical use for treatment in the United States, and a lack of accepted safety for use of the drug under medical supervision.
Synthetic cathinones (also known as “bath salts”) act as central nervous system stimulants causing rapid heart rate (which may lead to heart attacks and strokes), chest pains, nosebleeds, sweating, nausea, and vomiting. People who abuse these substances have reported agitation, insomnia, irritability, dizziness, depression, paranoia, delusions, suicidal thoughts, seizures, and panic attacks. Users have also reported effects including impaired perception of reality, reduced motor control, and decreased ability to think clearly. One of the most recent exposes on the dangers of synthetic drugs was aired last week on CNN, entitled “How Synthetic Drugs are Killing Kids.” http://www.cnn.com/2014/12/01/us/synthetic-drugs-investigation. Other national and local news agencies have reported the dangers and epidemic of synthetic drugs. http://time.com/57167/rise-of-fake-pot/#57167/rise-of-fake-pot (noting that the “most complicated drug problem in the world right now is not meth or cocaine or heroin. It is synthetic drugs, also known as legal highs or designer drugs”); http://eugenedailynews.com/2012/10/synthetic-drug-spice-linked-to-harmful-highs
http://www.katu.com/news/medicalalert/Synthetic-drug-spice-linked-to-kidney-failure-172872251.html (linking a half-dozen kidney failures in Oregon and Southwest Washington to local synthetic drug use).
“The loop hole the defendants thought they were exploiting closed in on them, but not before they made millions marketing illegal ‘incense’ to young people and military members,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “This was a despicable act considering the proof-positive evidence we now have of the harmful effects of the drug analogs associated with their illicit products. Fortunately, the investigative efforts of HSI and the IRS dismantled this major supplier of Spice.”
This case was investigated by the Department of Homeland Security (DHS), Internal Revenue Service (IRS), Drug Enforcement Administration (DEA), Customs and Border Protection (CBP). The case was prosecuted by Assistant United States Attorneys Leah K. Bolstad and Michelle H. Kerin.
Defendant Sentenced for Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and the members of the South Florida Joint Terrorism Task Force (JTTF), announce that Gufran Ahmed Kauser Mohammed, 31, a naturalized United States citizen and resident of Dammam, Saudi Arabia, was sentenced to 15 years in prison by U.S. District Judge Ursula Ungaro, for conspiring to provide material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (“AQI/al-Nusrah Front”), and al-Shabaab.
On July 11, 2014, Mohammed pled guilty to Count 1 of an Indictment charging him with conspiracy to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria, and al-Shabaab in Somalia. The charges allege that Mohammed sent a series of wire transfers to coconspirator Mohamed Hussein Said for the purpose of supporting al-Shabaab, and to an individual whom he believed was a terrorist fundraiser, recruiter, and supplier for the purpose of supporting al-Qa’ida and AQI/al-Nusrah Front. In addition, Mohammed agreed to support al-Qa’ida and AQI/al-Nusrah Front by recruiting individuals to fight in the conflict in Syria. Mohammed earmarked certain of his financial contributions for the purpose of buying weapons and funding attacks on United States citizens or the United Nations.
Mr. Ferrer commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. The case was prosecuted by Trial Attorney Jolie F. Zimmerman from the Counterterrorism Section of the Justice Department’s National Security Division and Assistant U.S. Attorneys Brian K. Frazier and Ricardo A. Del Toro.
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 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Sentenced for Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), announce that Gufran Ahmed Kauser Mohammed, 31, a naturalized United States citizen and resident of Dammam, Saudi Arabia, was sentenced to 15 years in prison by U.S. District Judge Ursula Ungaro, for conspiring to provide material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (“AQI/al-Nusrah Front”), and al-Shabaab.
On July 11, 2014, Mohammed pled guilty to Count 1 of an Indictment charging him with conspiracy to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria, and al-Shabaab in Somalia. The charges allege that Mohammed sent a series of wire transfers to coconspirator Mohamed Hussein Said for the purpose of supporting al-Shabaab, and to an individual whom he believed was a terrorist fundraiser, recruiter, and supplier for the purpose of supporting al-Qa’ida and AQI/al-Nusrah Front. In addition, Mohammed agreed to support al-Qa’ida and AQI/al-Nusrah Front by recruiting individuals to fight in the conflict in Syria. Mohammed earmarked certain of his financial contributions for the purpose of buying weapons and funding attacks on United States citizens or the United Nations.
Mr. Ferrer commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Brian K. Frazier and Ricardo A. Del Toro and Trial Attorney Jolie F. Zimmerman from the Counterterrorism Section of the Justice Department’s National Security Division.
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.
Dallas-Based Physician and Home Health Agency Nursing Director Sentenced in $3 Million Medicare Fraud ConspiracyRead the Press Release
DALLAS – A physician and a home health agency manager were sentenced today for their roles in a $3 million Medicare fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Joseph Megwa, M.D., 60, of Arlington, Texas, and Ebolose Eghobor, R.N., 49, of Grand Prairie, Texas, were sentenced today by U.S. District Judge Ed Knikeade to 120 months and 48 months respectively, in federal prison. In May 2014, Megwa and Eghobor were each convicted on one count of conspiracy to commit health care fraud. In addition, Mega was convicted on three counts of health care fraud and four counts of making false statements related to a health care benefit program based on his submission of false claims to Medicare for home visits or house calls to patients that he never actually made.
The home health care convictions related to a scheme involving PTM Healthcare Services Inc. (PTM), which was owned and operated by Ferguson Ikhile, R.N. Ikhile, 56, of Irving, Texas, pleaded guilty in 2013 to conspiracy to commit health care fraud and is scheduled to be sentenced on January 14 2015.
From approximately 2006 to 2011, PTM recruited Medicare beneficiaries so that PTM could bill Medicare for unnecessary home health services. Ikhile, Eghobor and others then prepared fraudulent medical records that made it appear that the beneficiaries needed home health services. In exchange for cash payments, Megwa, who owned and operated Raphem Medical Practice P.A., falsely certified that the beneficiaries needed home health services and that the services otherwise qualified for payment under Medicare.
The investigation was led by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office for the Northern District of Texas and the Criminal Division’s Fraud Section. The case was prosecuted by Deputy Chief Jeffrey A. Goldberg and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mindy Sauter and Michael Elliott of the Northern District of Texas.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is 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.
Convicted Fraudster Indicted for Failing to Surrender for Service of SentenceRead the Press Release
DALLAS — A Irving, Texas, man, who was sentenced to serve 70 months in federal prison in an investor fraud case, was indicted yesterday for failing to self-surrender to the Bureau of Prisons to serve that sentence, announced U.S. Attorney Sarah R. Saldaña.
Michael David Carroll, 39, pleaded guilty in April 2013 to one count of wire fraud stemming from his role as a registered agent, director and incorporator of The Salad Bowl Franchise Corporation. Carroll ran a scheme to defraud potential investors, and to obtain money and property under false and fraudulent pretenses, by fraudulently inducing investors to purchase a “Salad Bowl” franchise from him.
Carroll was sentenced on March 17, 2014, by U.S. District Judge David C. Godbey to 70 months in federal prison and ordered to pay more than $1.4 million in restitution. He was ordered to report to federal prison before 11:00 a.m. on Monday, May 14 2014, to begin serving that sentence.
According to the indictment, on April 18, 2014, the Court granted a defense request to delay Carroll’s report date and set a new report date of July 15, 2014. Again, on July 14, 2014, the Court granted another defense request to delay Carroll’s report date and set a new report date of no later than 2:00 p.m. on Monday, September 15, 2014. Carroll, however, failed to surrender for service of sentence. On September 17, 2014, Judge Godbey ordered that an arrest warrant be issued for Carroll.
If convicted, the maximum statutory penalty for this offense is 10 years in federal prison and a $250,000 fine. The provisions of 18 U.S.C. § 3146 require that any term of imprisonment imposed on Carroll for failure to surrender for service of sentence must be served consecutively to his 70-month sentence of imprisonment for investor fraud ordered by Judge Godbey in March of 2014.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty.
The FBI investigated the case and Assistant U.S. Attorney David L. Jarvis is prosecuting.
Convicted Felon from Camden County, New Jersey, Admits Role in Conspiracy to Traffic Guns from South Carolina to New JerseyRead the Press Release
CAMDEN, N.J. – A Lawnside, New Jersey, man today admitted illegally possessing firearms and selling 22 guns without a license, U.S. Attorney Paul J. Fishman announced.
Anthony Gilmore, a/k/a “Tone,” 25, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiring to deal firearms without a license and one count of possession of a firearm by a previously convicted felon.
According to documents filed in this case and statements made in court:
Between April 8, 2013, and July 8, 2014, Gilmore conspired with four others to sell 22 firearms on several occasions, for profit and without a license. The 22 firearms included handguns, shotguns, and an assault rifle. Gilmore personally sold or participated in the sale of at least seven firearms, including handguns and shotguns, as well as a bullet-proof vest, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Gilmore’s conspirators obtained the firearms in South Carolina and brought them to New Jersey on a weekly basis, at times using Amtrak to transport the guns. On two occasions, Gilmore sold a firearm to the cooperating witness along with ammunition. All 22 weapons are now in the custody of law enforcement.
The conspiracy charge to which Gilmore pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful possession of a firearm as a convicted felon charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 23, 2015.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George Belsky in Newark, New Jersey, with the investigation leading to today’s guilty plea. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon police departments, for their work in the case.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
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Defense counsel: Assistant Federal Public Defender Christopher O’Malley Esq., CamdenGilmore, Anthony Information
Colorado Men Sentenced for Flying More Than 70 Pounds of Cocaine to Baton RougeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson has sentenced VINCENT SALZANO, age 57, and ARMANDO SALZANO, age 33, both of Denver, Colorado, to lengthy prison terms for their roles in attempting to transport more than seventy (70) pounds of cocaine through Baton Rouge on a private aircraft.
VINCENT SALZANO was sentenced to serve sixty (60) months in federal prison following his conviction earlier this year for possession with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 841(a)(1). VINCENT SALZANO was also ordered to serve a 3-year term of supervised release following his release from imprisonment and pay a $5,000 fine. ARMANDO SALZANO was sentenced to serve forty-eight (48) months in federal prison, to be followed by a 2-year term of supervised release. ARMANDO SALZANO was also ordered to pay a $30,000 fine. The defendants were ordered to forfeit any and all property used to commit the offense.
Today’s sentences follow the defendants’ arrests in October of 2013 at the Baton Rouge Metropolitan Airport. On October 7, 2013, the defendants met and boarded a private plane, which VINCENT SALZANO controlled, which had been flown to Atlanta, Georgia at his direction. The following day, the defendants flew from Atlanta to the McAllen, Texas area, where they deplaned, left the airport, and obtained approximately 30 packaged bundles of cocaine. The defendants then re-boarded the plane, carrying the cocaine and intending to travel back to Atlanta. The plane stopped in Baton Rouge for fuel, at which point the SALZANOS were contacted by law enforcement agents and arrested. Both defendants pled guilty earlier this year.
The investigation is being conducted by the United States Attorney’s Office, the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Customs and Border Protection, and the Louisiana State Police, with assistance from the West Baton Rouge Parish Sheriff’s Department, the Federal Aviation Administration, and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Colorado Man Charged with Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Denver, Colorado, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Brandon Jeraye Trejo, age 22, was indicted on December 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 10, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a mandatory 3 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 14, 2014, Trejo knowingly and intentionally distributed, and possessed with intent to distribute, a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Trejo is presumed innocent until and unless proven guilty.The investigation is being conducted by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Trejo remains in custody pending release on bond. A trial date has not been set.
Colombian Boat Captain Sentenced to More Than 18 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Juan Yover Estrada-Mancilla (35, Colombia, South America) to 18 years and 9 months in federal prison for conspiracy to possess with intent to distribute five kilograms of cocaine while on board a vessel subject to the jurisdiction of the United States. Estrada-Mancilla is the last of three defendants to be sentenced in this case. On October 22, 2014, Jorge Mario Cuero-Delgado (47, Colombia), was sentenced to serve 10 years and 1 month in federal prison, and Franklin Albeiro Angulo-Montano (39, Colombia) was sentenced to serve 11 years and 3 months in federal prison.
All three Colombian nationals were arrested on May 18, 2014, when the self-propelled, semi-submersible vessel in which they were traveling was interdicted and searched by the U.S. Coast Guard (USCG). During the search of the vessel, members of the USCG team found and seized 2,838 kilograms of cocaine.
Estrada-Mancilla, the captain of the vessel, and the two crewmembers all previously pleaded guilty to the offense.
This case was investigated by OCDETF's Panama Express Strike Force, comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement=s Homeland Security Investigations, the United States Coast Guard Investigative Service, and the Joint Interagency Task Force South. The principal mission of the OCDETF Program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
This case was prosecuted by Assistant United States Attorney Maria Chapa Lopez.
Cocaine Trafficker Sentenced to More Than 33 Years in PrisonRead the Press Release
Conspiracy Involved Over 700 Kilograms of Cocaine Worth Over $21 Million
CHARLOTTE, NC B Pedro Oscar Dieguez, a/k/a “The Cuban,” was sentenced today by Chief U.S. District Judge Frank D. Whitney to serve 400 months in prison and five years of supervised release on cocaine trafficking and related charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered the defendant to pay a $20,000 fine and the forfeiture of Dieguez’s Mercedes vehicle, three firearms and $1,890 in cash.
U.S. Attorney Tompkins is joined in making today’s announcement by John S. Comer, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Sheriff Eddie Cathey of the Union County Sheriff’s Office (UCSO) and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed court documents, trial evidence presented, and today’s sentencing hearing:
In January 2014 following a four-day trial, Dieguez, 49, of Indian Trail, N.C. was convicted by a federal jury of conspiracy to distribute and to possess with intent to distribute cocaine and money laundering conspiracy. From about 2004 through 2013, Dieguez and his co-conspirators trafficked more than 700 kilograms of cocaine with an estimated street value of more than $21,000,000. Dieguez obtained his drug supplies from Mexican cartels and other sources of supply with connections to cartels and transported it to the Charlotte area using trucks. Dieguez and his conspirators ultimately redistributed the cocaine as crack cocaine. Dieguez engaged in a conspiracy to launder the drug proceeds through bank accounts and by purchasing expensive exotic horses. Dieguez kept the horses on his 16-acre ranch located in Indian Trail, which he also used to offload the drug shipments. While executing a search warrant at Dieguez’s ranch, law enforcement seized multiple firearms, including a .45 caliber High-Point handgun and a .22 Ruger handgun.
Dieguez, a Cuban national, has been in federal custody since April 24, 2013, after it was discovered that he had been planning to flee to Cuba. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Two of Dieguez’s conspirators, Maximiliano Aguilar-Rodriguez and Juan Diego Aguilar-Preciado were previously sentenced to 70 months and 46 months in prison, respectively, and to three years of supervised release.
The case was investigated by the DEA in Charlotte, UCSO, and CMPD. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman.
Cincinnati Man Sentenced to 222 Months for Receiving Child PornographyRead the Press Release
CINCINNATI – Christopher Blain, 38, of Cincinnati, was sentenced in U.S. District Court to 222 months in prison for receiving child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the sentence handed down yesterday by U.S. District Chief Judge Susan J. Dlott.
According to court documents, investigators discovered Blain had received 825 child pornography images to one of his email addresses, which incorporated the username KDDYLVR. Blain told investigators he created the email account in 2007. Analysis of the account confirmed that between May 8, 2013 and June 14, 2013, Blain received numerous images and/or videos depicting child pornography from other individuals. The images or videos depict prepubescent minors engaged in various sexual acts and are considered sadistic.
Blain pleaded guilty on June 2, 2014 to receipt of child pornography. He has been in custody since October 2013.This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's 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 as well as to identify and rescue victims.
U.S. Attorney Stewart commended the cooperative investigation by Homeland Security and the Secret Service, as well as Assistant United States Attorney Christy Muncy, who represented the United States in this case.
Cherry Creek Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Cherry Creek, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on December 15, 2014, by U.S. District Judge Roberto A. Lange.
Kelly Romero, age 27, was sentenced to 14 months in custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Romero was indicted by a federal grand jury on July 17, 2013. He pled guilty on September 22, 2014.
The conviction stems from an incident on May 16, 2013, when the victim returned to his home in Cherry Creek, after a day of shopping for items for his grandmother’s “Memorial Give Away.” At that point, Romero, who had been drinking, got into an argument with the victim, who is Romero’s brother. During the argument, Romero picked up and pointed a sawed-off shotgun at his brother, telling the victim to get out of the house or Romero would shoot him.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Romero was immediately turned over to the custody of the U.S. Marshals Service.
Cherokee, N.C. Man Sentenced TO More Than Nine Years in Prison in Connection with Oxycodone Distribution RingRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger today sentenced Jackie Lee Rattler, 55, of Cherokee, N.C. 108 months in prison on drug trafficking conspiracy charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Rattler was also ordered to serve three years under court supervision upon completion of his prison term.
U.S. Attorney Tompkins is joined in making today’s announcement by John S. Comer, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the North Carolina; Charles Addington, Deputy Associate Director of the Bureau of Indian Affairs, Division of Drug Enforcement; Chief Ben Reed of the Cherokee Indian Police Department; Sheriff Curtis Cochran of the Swain County Sheriff’s Office; Sheriff Mickey Anderson of the Graham County Sheriff’s Office; and Sheriff Jimmy Ashe of the Jackson County Sheriff’s Office.
According to filed court documents and today’s proceedings, Rattler and his co-defendants were involved in the trafficking of narcotics, including Oxycodone, cocaine, marijuana and Alprazolam in Swain and Jackson Counties. At today’s sentencing hearing, Rattler was found to be accountable for trafficking 477.20 grams Oxycodone, 3.05 kilograms of marijuana and 56.2 grams of cocaine. During the investigation, law enforcement also seized 42 firearms, including two Ruger M77 II rifles and a Smith & Wesson 66 Revolver. In September 2013, Rattler pleaded guilty to six counts of possession with intent to distribute a controlled substance and one count of being a controlled substance user in possession of firearms.
Rattler’s co-defendants have already been sentenced: Mark Allen Winstead was sentenced to 38 months; Timothy Leroy Rattler was sentenced to 18 months; Jacob Hunter Rattler was sentenced to 15 months; Taryn Krista Elizabeth Toineeta Rattler was sentenced to 70 months in prison and Evan Thomas Norris, Jr. was sentenced to 19 months in prison.
Jackie Rattler has been in federal custody since June 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Tompkins thanked all the law enforcement agencies involved in these investigations for their continued cooperation and assistance. The prosecution was handled by Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville.
Chamico Employee Sentenced for Conspiracy to Commit Mail FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TENILLE NIELSON, age 34, of Franklinton, was sentenced today for her role in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits.
U.S. District Judge Helen G. Berrigan sentenced NIELSON to 3 years probation and restitution in the amount of $6,422.
According to the court documents, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, NIELSON, along with CHARLES E. MIZELL, JR., TERRY CASTILOW, WILLIAM DARRYL KING, DAVID LOWE, JAMES CREEL, JERRY ATHEY, JACQUELINE MYERS, and ROGER NADEAU, conspired to defraud the Louisiana Workforce Commission (“LWC”) of money and property by means of false and fraudulent representations, pretenses and promises, well knowing the representations, pretenses and promises were false, and mailed and caused to be mailed through the United States Postal Service unemployment (“UI”) benefit claim forms for the purpose of obtaining UI benefits to which they were not entitled. Specifically, at the time NIELSON applied for UI benefits and made weekly representations to LWC that she was unemployed and not getting paid, MIZELL, JR., actually employed her at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.
U.S. Attorney Polite praised the work of the Department of Labor-OIG and the Federal Bureau of Investigation, with assistance from the Louisiana Workforce Commission in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Cargo Ship Chief Engineer Convicted of Environmental Crimes, Obstruction of Justice and Witness TamperingRead the Press Release
A chief engineer from the M/V Trident Navigator was convicted by a federal jury in New Orleans late yesterday after a week-long trial, of knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS), obstruction of justice and witness tampering, announced the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Louisiana.
Matthaios Fafalios, 64, a resident of Greece, was convicted of knowingly falsifying the vessel’s oil record book, obstruction of justice, and witness tampering related to his service onboard the M/V Trident Navigator and a subsequent U.S. Coast Guard boarding of the vessel in January 2014. In late December 2013, Fafalios ordered his engineering crew to construct a hose known in the industry as a “magic hose” to discharge the oily waste water that was in the vessel’s bilge holding tank. Two crewmembers onboard the vessel reported this illegal discharge to the Coast Guard. When coast guard inspectors boarded the vessel, Fafalios attempted to hide critical documents from the inspectors that indicated the illegal discharge occurred. Additionally, Fafalios ordered engineers under his command to lie to the Coast Guard about the illegal oily waste water discharge.
Consistent with requirements in the APPS regulations, a vessel like the M/V Trident Navigator, must maintain a record known as an oil record book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the oily water separator (OWS).
The operator of the vessel, Marine Managers LTD., had previously pleaded guilty to knowingly falsifying the oil record book and obstruction of justice and paid a total criminal penalty of $900,000.00.
The case was investigated by the U.S. Coast Guard Investigative Service. The case was prosecuted by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice and by Emily Greenfield of the U.S. Attorney’s Office for the Eastern District of Louisiana.
Cargo Ship Chief Engineer Convicted of Environmental Crimes, Obstruction of Justice and Witness TamperingRead the Press Release
A chief engineer from the M/V Trident Navigator was convicted by a federal jury in New Orleans late yesterday after a week-long trial, of knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS), obstruction of justice and witness tampering, announced the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Louisiana.
Matthaios Fafalios, 64, a resident of Greece, was convicted of knowingly falsifying the vessel’s oil record book, obstruction of justice, and witness tampering related to his service onboard the M/V Trident Navigator and a subsequent U.S. Coast Guard boarding of the vessel in January 2014. In late December 2013, Fafalios ordered his engineering crew to construct a hose known in the industry as a “magic hose” to discharge the oily waste water that was in the vessel’s bilge holding tank. Two crewmembers onboard the vessel reported this illegal discharge to the Coast Guard. When coast guard inspectors boarded the vessel, Fafalios attempted to hide critical documents from the inspectors that indicated the illegal discharge occurred. Additionally, Fafalios ordered engineers under his command to lie to the Coast Guard about the illegal oily waste water discharge.
Consistent with requirements in the APPS regulations, a vessel like the M/V Trident Navigator, must maintain a record known as an oil record book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the oily water separator (OWS).
The operator of the vessel, Marine Managers ltd., had previously pleaded guilty to knowingly falsifying the oil record book and obstruction of justice and paid a total criminal penalty of $900,000.00.
The case was investigated by the U.S. Coast Guard Investigative Service. The case was prosecuted by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice and by Emily Greenfield of the U.S. Attorney’s Office for the Eastern District of Louisiana.
California Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On December 16, 2014, Mario Ruben Borboa, a 38 year-old resident of Downey, California, was sentenced by United States District Court Judge John Jarvey to 160 months in prison for conspiracy to distribute methamphetamine, and to serve five years supervised release following imprisonment, announced United States Attorney Nicholas Klinefeldt. Borboa entered a guilty plea to conspiracy to distribute methamphetamine on August 14, 2014.
Borboa’s co-defendant, Melissa Nicole Gallardo, a 30 year-old resident of Lancaster, California, was sentenced by Judge John Jarvey to 65 months in prison for conspiracy to distribute methamphetamine, and to serve three years of supervised release following imprisonment. Gallardo entered a guilty plea to the charge on July 11, 2014.
On February 27, 2014, the Iowa State Patrol in Cass County, Iowa, conducted a traffic stop resulting in the seizure of approximately 16 pounds of methamphetamine that was located in the trunk of the car Borboa and Gallardo had driven from California. The investigation revealed that the methamphetamine was being transported from the Los Angeles, California, area to Waterloo, Iowa, where it was to be distributed. Money received from the sale of the methamphetamine was to be returned to California at a later date.
The investigation was conducted by the Iowa State Patrol and the Iowa Division of Narcotics Enforcement, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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California Man Sentenced to Ten Years in Federal Prison for Transporting PCP on a Greyhound BusRead the Press Release
ALBUQUERQUE – Randall Wheeler, Jr., 30, of Los Angeles, Calif., was sentenced this afternoon to ten years in federal prison followed by four years of supervised release for his drug trafficking conviction.
Wheeler was arrested in Albuquerque, N.M., on Jan. 23, 2014, on a criminal complaint alleging a drug trafficking charge. According to the criminal complaint, Wheeler possessed phencyclidine (PCP) with intent to distribute on Jan. 22, 2014, in Bernalillo County, N.M. Wheeler subsequently pled guilty on Sept. 17, 2014, to a felony information charging him with possession with intent to distribute.According to the plea agreement, Wheeler admitted that on Jan. 22, 2014, he was on a Greyhound bus that made a routine stop in Albuquerque, N.M. During the stop, a DEA agent approached him, identified himself as law enforcement, and asked permission to speak with him. Wheeler agreed and permitted the agent to search his bags. The search revealed two bottles concealed within Wheeler’s suitcases which were found to contain PCP.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. The case was prosecuted by Assistants U.S. Attorney Linda Mott and Rumaldo A. Armijo.
CEO and Managing Director of U.S. Broker-Dealer Plead Guilty to Massive International Bribery SchemeRead the Press Release
Senior Venezuelan Banking Official Received at Least $5 Million in Bribes in Exchange for Directing Business to U.S. Defendants
The former chief executive officer and former managing director of a U.S. broker-dealer (the Broker-Dealer), pleaded guilty to bribery charges arising from their scheme to pay bribes to Maria De Los Angeles Gonzalez De Hernandez, who was a senior official in Venezuela’s state economic development bank, Banco de Desarrollo Económico y Social de Venezuela (Bandes), in return for trading business that generated more than $60 million in commissions.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement.
“Benito Chinea and Joseph DeMeneses are the fifth and sixth defendants to plead guilty in connection with this far-reaching bribery scheme, which ranged from Wall Street to the streets of Caracas,” said Assistant Attorney General Caldwell. “The guilty pleas and the forfeiture of assets once again demonstrate that the Department is committed to holding corporate executives who engage in foreign bribery individually accountable and to deny them the proceeds of their corruption.”
According to the allegations in the indictment and other documents previously filed in Manhattan federal court:
Benito Chinea, 48, of Manalapan, New Jersey, and Joseph De Meneses, 45, of Fairfield, Connecticut, working with others, arranged the bribe payments to Gonzalez in exchange for her directing Bandes’s financial trading business to the Broker-Dealer. Previously, Gonzalez, along with two employees of the Broker-Dealer, Tomas Alberto Clarke Bethancourt (“Clarke”) and Jose Alejandro Hurtado (“Hurtado”), pleaded guilty for their involvement in this bribery scheme. A managing director of the Broker-Dealer, Ernesto Lujan (“Lujan”), also pleaded guilty for his role in the scheme.
Background on the Broker-Dealer and Bandes
At all times relevant to the charges, Chinea was the chief executive officer and De Meneses was a managing director in the Broker-Dealer, which was headquartered in New York, New York, with offices in Miami, Florida. In 2008, the Broker-Dealer established a group called the Global Markets Group, which included De Meneses, Lujan, and Clarke, and which offered fixed income trading services to institutional clients. One of the Broker-Dealer’s clients was Bandes, which operated under the direction of the Venezuelan Ministry of Finance. The Venezuelan government had a majority ownership interest in Bandes and provided it with substantial funding. Gonzalez was an official at Bandes and oversaw the development bank’s overseas trading activity. At her direction, Bandes conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of Bandes involved fixed income investments for which the Broker-Dealer charged Bandes a mark-up on purchases and a mark-down on sales.
The Bribery Scheme
As alleged in court documents, from late 2008 through 2012, Chinea and De Meneses, together with three Miami-based Broker-Dealer employees, Lujan, Clarke and Hurtado, participated in a bribery scheme in which Gonzalez directed trading business she controlled at Bandes to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer split the revenue the Broker-Dealer generated from this trading business with Gonzalez. During this time period, the Broker-Dealer generated over $60 million in commissions from trades with Bandes.
In order to conceal their conduct, Chinea, De Meneses and their co-conspirators routed the payments to Gonzalez, frequently in six-figure amounts, through third-parties posing as “foreign finders” and into offshore bank accounts. In several instances, Chinea personally signed checks worth millions of dollars that were made payable to one of these purported “foreign finders” and later deposited in a Swiss bank account.
As further alleged in court documents, as a result of the bribery scheme, Bandes quickly became the Broker-Dealer’s most profitable customer. As the relationship continued, however, Gonzalez became increasingly unhappy about the untimeliness of the payments due her from the Broker-Dealer, and she threatened to suspend Bandes’s business. In response, De Meneses and Clarke agreed to pay Gonzalez approximately $1.5 million from their personal funds. Chinea and De Meneses agreed to use Broker-Dealer funds to reimburse De Meneses and Clarke for these bribe payments. To conceal their true nature, Chinea and De Meneses agreed to hide these reimbursements in the Broker-Dealer’s books as sham loans from the Broker-Dealer to corporate entities associated with De Meneses and Clarke.
Chinea and De Meneses each pleaded guilty before U.S. District Judge Denise L. Cote of the Southern District of New York to one count of conspiracy to violate the Foreign Corrupt Practices Act and the Travel Act. Chinea and De Meneses have also agreed to pay $3,636,432 and $2,670,612 in forfeiture, respectively, which amounts represent their earnings from the bribery scheme. Sentencing hearings are scheduled for March 27, 2015.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, visit www.stopfraud.gov.
This case is being investigated by the FBI, and prosecuted Senior Deputy Chief James Koukios of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Harry A. Chernoff and Jason H. Cowley of the Southern District of New York. Assistant U.S. Attorney Carolina Fornos of the Southern District of New York is responsible for the forfeiture aspects of the case. The U.S. Securities and Exchange Commission also assisted with this investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Burtonsville Man Pleads Guilty to the Armed Robbery of a Convenience StoreRead the Press Release
Brandished a Gun During the Robbery
Greenbelt, Maryland – Donnell Edward Harris, age 21, of Burtonsville, Maryland, pleaded guilty today to robbing a convenience store in Waldorf, Maryland, and to brandishing a gun during the robbery.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Charles County Sheriff Troy Berry.
According to Harris’ plea agreement, on September 11, 2013, Harris, Charles Johnson and Madani Tejan robbed a convenience store on St. Ignatius Drive in Waldorf. Harris brandished a firearm during the robbery and the conspirators forced the store employee at gunpoint to open the store’s cash register. The robbers stole $90 in cash and several packs of cigarettes.
Harris also admitted that after he was arrested for the robbery and while he was incarcerated, he threatened to hurt co-conspirator Charles Johnson if Johnson did not lie to law enforcement by stating that he (Johnson) had brandished the firearm during the robbery.
Johnson, age 20, of Beltsville, Maryland, and Madani Ilara Tejan, age 32, of Upper Marlboro, Maryland, previously pleaded guilty to the robbery.
Harris, Johnson and Tejan each face a maximum sentence of 20 years in prison for the robbery. Harris also faces a mandatory seven years, consecutive to any other sentence, and up to life in prison, for brandishing a gun in relation to a crime of violence. U.S. District Judge George Jerrod Hazel has scheduled sentencing for Harris on March 20, 2015, at 9:00 a.m. Johnson and Tejan are both scheduled to be sentenced on January 12, 2015, at 9:30 a.m. and 2:00 p.m., respectively.
United States Attorney Rod J. Rosenstein commended the ATF, Montgomery County Police Department and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Daniel Gardner, who are prosecuting the case.
Burlington County, New Jersey, Man Admits Collecting Dead Mother's Monthly Benefit ChecksRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted converting to his own use Retirement Savings benefits and Veterans Affairs Dependency and Indemnity Compensation payments that were wrongfully paid to his deceased mother, U.S. Attorney Paul J. Fishman announced.
Irvin Cooper, 65, of Delran, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of theft of government funds.
According to documents filed in this case and statements made in court:
Cooper admitted that when his mother died in December 2006 he intentionally did not notify the Social Security Administration (SSA) and the Department of Veteran’s Affairs (VA) as he was obligated to do. This allowed him to continue to receive his mother’s SSA survivor benefit checks and the VA’s Dependency and Indemnity Compensation checks. The SSA and VA discovered the death in April of 2014.
After his mother had died, the SSA and the VA continued to deposit the checks electronically into a PNC Bank account in his mother’s name. Cooper acknowledged he accessed that account at various times and used the money to pay for personal expenses. He admitted that from December 2009 to April 2014, he collected $98,454 to which he was not entitled.
The charge to Cooper pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 26, 2015.
U.S. Attorney Fishman credited special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan; and the Department of Veterans Affairs, Office of Inspector General, under the direction of the direction of Special Agent in Charge Jeffrey G. Hughes, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
14-448Defense counsel: James K. Grace Esq., Mount Holly, N.J.
Cooper, Irvin Information
Buncombe Co. Man Pleads Guilty to Armed Robbery and Gun ChargesRead the Press Release
ASHEVILLE, N.C. – Anthony Lamont Hill, 31, of Fletcher, NC, appeared before U.S. Magistrate Judge Dennis L. Howell on Tuesday, December 16, 2014 and pleaded guilty to armed robbery and gun charges in connection with a 2013 armed robbery of a Dollar General store in Woodfin, N.C., announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Brett Holloman of the Woodfin Police Department.
At today’s plea hearing, Hill admitted to committing the armed robbery of the Dollar General Store located at 458 Weaverville Road on August 2, 2013. Court records show that Hill by actual and threatened force took money from the store while it was occupied by only two employees. Hill pleaded guilty to one count of Hobbs Act robbery and one count of possessing and brandishing a firearm during and in relation to a crime of violence.
Hill remains in federal custody. He faces a maximum prison sentence of 20 years and a $250,000 fine for the armed robbery charge and a minimum of seven years and a maximum of life imprisonment for the gun charge. A sentencing date for Hill has not been set yet.
The investigation was handled by ATF and the Woodfin Police Department. The prosecution for the government was handled by Assistant U.S. Attorney John D. Pritchard of the U.S. Attorney’s Office in Asheville.
Buffalo Woman Sentenced for Tax FraudRead the Press Release
CONTACT: BARBARA BURNS
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Dominique Taylor, 29, of Buffalo, NY, who was convicted of conspiracy to defraud the Internal Revenue Service, was sentenced to time served and six months of electronic monitoring by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay restitution totaling $54,316.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant conspired with others and submitted false claims for fraudulent income tax refunds. Taylor had others obtain legitimate W-2 forms from actual employers and then altered the forms to create new W-2s by changing income and withholding information so as to maximize the refund to be obtained. The defendant kept a portion of the fraudulent refund received.
Co-defendant Keianna Jones was also convicted and is awaiting sentencing.
The conviction is the result of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division under the direction of Acting Agent-In-Charge Shantelle Kitchen.
Buffalo Man Sentenced for Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Tarrek Williams, 27, of Buffalo, NY, who was convicted of bank fraud, was sentenced to time served by U.S. District Court Chief Judge William M. Skretny.Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that between September 21, 2011 and July 28, 2013, the defendant, was involved in a scheme to defraud First Niagara Bank. As part of the scheme, Williams deposited false and fraudulent checks so others involved in the scheme could withdraw proceeds from that check before the bank realized that there were insufficient funds to cover that check. The total loss to First Niagara for these checks is $14,185.06.
The sentencing is the culmination of an investigation on the part of Special Agents of the Postal Inspection Service, under the direction of Shelly Binkowski, the Inspector in Charge of the Boston Division.
Brothers Plead Guilty to $6.1 Million Tax FraudRead the Press Release
Peoria, Ill. – Two brothers, who formerly owned and operated a Fast Stop service station in Peoria, Ill., entered pleas of guilty today to conspiracy to defraud, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. Sentencing is scheduled on April 27, 2015, for Shaher M. Mizyed, 50, of Naperville, Ill., and Mohammad M. Mizyed, 46, of the 2800 block of West Playden, Peoria, Ill.
At the time of the offenses, Shaher and Mohammad Mizyed had ownership interest and were involved in the management of Tira Oil LLC, which operated the Fast Stop gas station and convenience store located at 3606 N. Prospect Road in Peoria. Both men were active in the daily operations and record keeping of Tira Oil which did a large amount of cash business.During today’s hearing, before U.S. District Judge Michael M. Mihm, and according to court documents, both men admitted that from 2006 through 2010, they conspired to file false federal corporate income tax returns. Based on information provided by the brothers to their accountant, the false tax returns under-reported the gross receipts of their company in the amount of approximately $6.1 million, which the brothers split between them. As a result of its failure to report the additional gross receipts to the IRS, Tira Oil owes approximately $171,000 in corporate income taxes.
Shaher Mizyed admitted that from January 2006 to about January 2012, false information was provided in the company’s monthly Illinois State Sales and Use Tax Returns. The false returns under-reported approximately $4.3 million in sales and defrauded the state of approximately $347,000 in state tax revenues.
Mohammad Mizyed entered a plea of guilty to conspiracy to commit mail fraud. He admitted that false income information was provided to the state of Illinois to receive approximately $163,000 in state medical benefits. Shaher Mizyed also provided false information about his income to obtain food stamp benefits totaling approximately $36,000. The same year that Shaher purchased a home for $581,000, he falsely claimed a gross monthly income of $800.00 in his application for food stamps
Shaher Mizyed further admitted that when he refinanced his home, he provided the bank with a 2007 tax return that was different from what was filed with the IRS. The return provided to the bank, in support of an application to refinance his home mortgage, showed a gross income of $95,056, when the return filed with the IRS falsely reflected a deficit of nearly $80,000.Mohammad Mizyed also pled guilty to one count of mail fraud for providing false 2007 and 2008 tax returns to the bank in support of his request for a mortgage. The tax returns Mohammad provided to the bank reflected income of $70,956 in 2007 and $79,109 in 2008; however, returns filed with the IRS reflected income of $3,900 in 2007 and $13,000 in 2008. Prior to the bank’s approval of the loan, he bank learned of the false information and denied the loan to Mohammad.
The maximum statutory penalty for conspiracy to defraud the United States and to violate tax laws is up to five years in prison; for mail fraud and for conspiracy to commit mail fraud the penalty is up to 20 years in prison. The offenses carry fines of up to $250,000.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Darilynn J. Knauss and Special Assistant U.S. Attorney Eugene Bian of the Office of the Illinois Attorney General. The charges are the result of investigation by Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation and the Illinois Department of Revenue.
Bridgeport Grocery Store Operator Pleads Guilty to Illegal Use of Food Stamp BenefitsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KHALID ABOUTAYEB, 46, of Bridgeport, pleaded guilty today in Hartford federal court to one count of unlawful use of food stamp benefits.
On May 14, 2014, a grand jury in New Haven returned an indictment charging ABOUTAYEB with engaging in food stamp fraud at the M&J Deli Market, a grocery and convenience store he operated at 988 State Street in Bridgeport.
The federal Supplemental Nutrition and Assistance Program (“SNAP”) is administered by the USDA’s Food and Nutrition Service and utilizes federal tax dollars to subsidize low-income households to provide them with the opportunity to achieve a more nutritious diet by increasing their food-purchasing power. SNAP recipients purchase eligible food items at retail food stores through the use of an Electronic Benefits Transfer (EBT) card, and SNAP benefits may be accepted by authorized retailers only in exchange for eligible items. Items such as alcoholic beverages, cigarettes, paper goods and soaps are not eligible for purchase with Food Stamp benefits, and it is a violation of the rules and regulations governing the food stamp program to allow benefits to be used to purchase ineligible items. SNAP benefits may not lawfully be exchanged for cash under any circumstances. The program is designed so that the total amount of each purchase is electronically transferred to the retailer’s designated bank account.
In pleading guilty, ABOUTABYEB admitted that he and others unlawfully exchanged customers’ food stamp benefits for ineligible items and cash at M&J Deli Market between approximately December 2011 and February 2013. The investigation has revealed that more than $285,000 in illegal SNAP benefits were redeemed at the store.
ABOUTAYEB is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on March 11, 2015, at which time he faces a maximum term of imprisonment of five years, a fine and restitution of approximately $199,000.
This matter is being investigated by the U.S. Department of Agriculture, Office of Inspector General, and is being prosecuted by Assistant U.S. Attorney Felice M. Duffy.
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Tom Carson
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[email protected]Billerica Woman Sentenced to 30 Months in Loan ScamRead the Press Release
BOSTON – A Billerica woman was sentenced yesterday for wire fraud charges in connection with a bogus bank guaranty program.
Diane Glatfelter, 48, was sentenced by U.S. District Judge Douglas P. Woodlock to 30 months in prison, three years of supervised release, and ordered to pay $1,575,000 in restitution. In September 2014, Glatfelter was found guilty following a five-day jury trial of four counts of wire fraud.
In 2007 and 2008, Glatfelter engaged in a scheme to defraud a young real estate businessman from California who was seeking funding for a development project. Glatfelter promised to secure a $20 million loan for him, but required him to pay $125,000 in up-front fees. The loan never materialized. Glatfelter used the money for various purposes other than to secure any funding. As part of her scam, Glatfelter set up two bogus front companies and used her unsuspecting sister to make these fronts appear legitimate.
At sentencing, Glatfelter was also held accountable for an additional $1,450,000 in fraud against four other victims in connection with three transactions during the same time period. Glatfelter promised all of the victims that through the efforts of K2 Unlimited and 211 Ventures, she could procure huge sums of money for their projects (up to $100 million), but they would need to pay a percentage of the amount sought up-front in order for her to procure the bank guarantee or the loan, or to participate in the trade program. The victims wired their payments to Glatfelter’s 211 Ventures and K2 bank accounts, in one instance to her lawyer’s bank account, and thereafter, Glatfelter disbursed the funds to her business partner and to her own temporary staffing agency. She never procured the funding. Glatfelter also provided false reasons for the delays in funding.United States Attorney Carmen M. Ortiz; Lisa A. Quinn, Special Agent in Charge of the U.S. Secret Service; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. The case was prosecuted by Assistant U.S. Attorneys Sandra S. Bower and Christine J. Wichers of Ortiz’s Economic Crimes Unit and Civil Division, respectively.
Baltimore Man Exiled to 12 Years in Prison for an Armed Commercial Robbery in which he Brandished a GunRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III, sentenced Frank Hill, age 30, of Baltimore, today to 12 years in prison followed by five years of supervised release for an armed commercial robbery and brandishing a firearm in relation to a crime of violence.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; Commissioner Anthony W. Batts of the Baltimore Police Department; Anne Arundel County Police Chief Tim Altomare; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, on April 7, 2013, Hill and two co-conspirators went into a pizza restaurant in Severn, Maryland, with guns drawn. The three robbers each had a firearm, which they pointed at the employees, and demanded money. One of the robbers struck an employee in the back of the head with a firearm. The employees were then placed in a back room or the walk-in freezer, and their hands and feet were bound with duct tape. The robbers took approximately $2,078 in cash belonging to the restaurant. The business was shut down for a brief period of time in connection with the police department’s investigation of the robbery.
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On April 26, 2013, Hill provided two men with a car, as well as a handgun and a pistol grip shotgun, which the men then used to rob a liquor store on Bowleys Lane in Baltimore. The robbers approached an employee of the store and forced him inside the business. Once inside the liquor store, the robbers demanded money and the employee, in fear for his life, provided approximately $70,000 in cash and goods. Hill admitted he received proceeds from this robbery.United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department, Baltimore City Police Department, Anne Arundel County Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Avon Subsidiary Pleads Guilty in Manhattan Federal Court to Conspiring to Violate the Foreign Corrupt Practices ActRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Leslie R. Caldwell, the Assistant Attorney General for the Criminal Division of the Department of Justice (“DOJ”), and Andrew G. McCabe, Assistant Director-in-Charge of the Washington Field Office of the Federal Bureau of Investigation (“FBI”), announced today the guilty plea of Avon Products (China) Co. Ltd. (“Avon China”), a wholly owned subsidiary of the New York-based cosmetics company, Avon Products, Inc. (“Avon”), to a criminal Information charging Avon China with conspiring to violate the accounting provisions of the Foreign Corrupt Practices Act (“FCPA”) by concealing and disguising gifts, cash, non-business meals, travel, and entertainment it gave to Chinese government officials in order to obtain and retain certain business benefits for Avon China. In addition, the U.S. Attorney’s Office and DOJ entered into a deferred prosecution agreement (“DPA”) with Avon, relating to Avon’s role in the conspiracy and its failure to implement internal controls. Pursuant to the DPA with Avon, a criminal Information has been filed charging Avon with conspiring to violate the books and records provisions of the FCPA and with violating the internal controls provisions of the FCPA. In a proceeding today before United States District Judge George B. Daniels, the criminal Informations were filed against Avon and Avon China, and Avon China entered its guilty plea and was sentenced.
In total, Avon and Avon China have agreed to pay $67,648,000 in criminal penalties. Avon has also agreed to implement rigorous internal controls, cooperate fully with the Government, and retain a compliance monitor for at least 18 months.
In a related matter, Avon reached a settlement with the U.S. Securities and Exchange Commission (“SEC”) and will pay an additional $67,365,013 in disgorgement and prejudgment interest, bringing the total amount of U.S. criminal and regulatory penalties paid by Avon and Avon China to $135,013,013.
Manhattan U.S. Attorney Preet Bharara said: “For years in China it was ‘Avon calling,’ as Avon bestowed millions of dollars in gifts and other things on Chinese government officials in return for business benefits. Avon China was in the door-to-door influence-peddling business, and for years its corporate parent, rather than putting an end to the practice, conspired to cover it up. Avon has now agreed to adopt rigorous internal controls and to the appointment of a monitor to ensure that reforms are instituted and maintained.”
Assistant Attorney General Leslie R. Caldwell said: “Companies that cook their books to hide improper payments will face criminal penalties, as Avon China’s guilty plea demonstrates. Public companies that discover bribes paid to foreign officials, fail to stop them, and cover them up do so at their own peril.”
FBI Assistant Director-In-Charge Andrew G. McCabe said: “When corporations knowingly engage in bribery in order to obtain and retain contracts, it disrupts the level playing field to which all businesses are entitled. Companies who attempt to advance their businesses through foreign bribery should be on notice. The FBI, with our law enforcement partners, is continuing to push this unacceptable practice out of the business playbook by investigating companies that ignore the law.”
According to the allegations contained in the criminal Informations, which were filed today in Manhattan federal court, and other publicly available information:
From at least 2004 through late 2008, Avon and Avon China conspired to falsify Avon’s books and records by falsely and misleadingly describing the nature and purpose of certain Avon China transactions in order to disguise things of value that Avon China executives and employees gave to government officials in China. Specifically, Avon China disguised over $8 million in gifts, cash, non-business travel, meals, and entertainment it gave to Chinese government officials in order to obtain and retain business benefits for Avon China. Avon China attempted to disguise the payments and benefits through various means, including by falsely or misleadingly describing the nature or purpose of, or participants associated with, such expenses, and falsely recording payments to a third-party consultant as payments for legitimate services.
Moreover, in late 2005, Avon learned that Avon China was routinely providing things of value to Chinese government officials and failing to properly document them. Instead of ensuring the practice was halted, disciplining the culpable individuals, and implementing appropriate controls to address this problem, Avon and Avon China took steps to conceal the conduct, despite knowing that Avon’s books and records would continue to be inaccurate if steps were not taken to correct the conduct. Avon China thus continued operating in the same improper manner, until late 2008.
Avon has since cooperated with the Government, including by conducting an extensive internal investigation, voluntarily making U.S. and foreign employees available for interviews, and collecting, analyzing, translating, and organizing voluminous evidence. Avon has also undertaken extensive anti-corruption remedial efforts, including taking appropriate disciplinary action against culpable employees, and continuing to enhance Avon’s internal accounting, reporting, and compliance functions.
Mr. Bharara praised the outstanding efforts of the FBI in the investigation. He also thanked the SEC’s Division of Enforcement for its significant assistance in the investigation.
The case is being handled by the Complex Frauds and Cybercrime Unit and the Fraud Section of the DOJ’s Criminal Division. Assistant U.S. Attorney Sarah E. Paul, and Senior Trial Attorney Laura Perkins of the Criminal Division’s Fraud Section, are in charge of the prosecution.
Avon Products Information
Avon China Information
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Avon China Plea Agreement
Avon China Pleads Guilty to Violating the FCPA by Concealing More Than $8 Million in Gifts to Chinese OfficialsRead the Press Release
Avon Products Inc. and Avon Products (China) Co. Ltd. Will Pay More than $135 Million in Criminal and Regulatory Penalties
Avon Products (China) Co. Ltd. (Avon China), a wholly owned subsidiary of the New York-based cosmetics company, Avon Products Inc. (Avon), pleaded guilty today to conspiring to violate the accounting provisions of the Foreign Corrupt Practices Act (FCPA) to conceal more than $8 million in gifts, cash and non-business meals, travel and entertainment it gave to Chinese government officials in order to obtain and retain business benefits for Avon China. Avon China and Avon admitted the improper accounting and payments and Avon entered into a deferred prosecution agreement to resolve the investigation. In a proceeding today before United States District Judge George B. Daniels, the criminal Informations were filed against Avon and Avon China, and Avon China entered its guilty plea and was sentenced.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office made the announcement.
“Companies that cook their books to hide improper payments will face criminal penalties, as Avon China's guilty plea demonstrates,” said Assistant Attorney General Caldwell. “Public companies that discover bribes paid to foreign officials, fail to stop them, and cover them up do so at their own peril.”
“For years in China it was ‘Avon calling,’ as Avon bestowed millions of dollars in gifts and other things on Chinese government officials in return for business benefits,” said U.S. Attorney Bharara. “Avon China was in the door-to-door influence-peddling business, and for years its corporate parent, rather than putting an end to the practice, conspired to cover it up. Avon has now agreed to adopt rigorous internal controls and to the appointment of a monitor to ensure that reforms are instituted and maintained.”
“When corporations knowingly engage in bribery in order to obtain and retain contracts, it disrupts the level playing field to which all businesses are entitled,” said FBI Assistant Director in Charge McCabe. “Companies who attempt to advance their businesses through foreign bribery should be on notice. The FBI, with our law enforcement partners, is continuing to push this unacceptable practice out of the business playbook by investigating companies who ignore the law.”
Avon China pleaded guilty to a criminal information filed today in the U.S. District Court for the Southern District of New York charging the company with conspiring to violate the books and records provisions of the FCPA. Avon, the parent company, entered into a deferred prosecution agreement today and admitted its criminal conduct, including its role in the conspiracy and its failure to implement internal controls. Pursuant to the deferred prosecution agreement, the department filed a criminal information charging Avon with conspiring to violate the books and records provisions of the FCPA and violating the internal controls provisions of the FCPA. In total, the Avon entities will pay $67,648,000 in criminal penalties. Avon also agreed to implement rigorous internal controls, cooperate fully with the department and retain a compliance monitor for at least 18 months.
Avon settled a related FCPA matter with the U.S. Securities and Exchange Commission (SEC) today, and will pay an additional $67,365,013 in disgorgement and prejudgment interest, bringing the total amount of U.S. criminal and regulatory penalties paid by Avon and Avon China to $135,013,013.
According to court documents, from at least 2004 through 2008, Avon and Avon China conspired to falsify Avon’s books and records by falsely describing the nature and purpose of certain Avon China transactions. Specifically, the companies sought to disguise over $8 million in gifts, cash and non-business travel, meals and entertainment that Avon China executives and employees gave to government officials in China in order to obtain and retain business benefits for Avon China. Avon China attempted to disguise the payments and benefits through various means, including falsely describing the nature or purpose of, or participants associated with such expenses, and falsely recording payments to a third party intermediary as payments for legitimate consulting services.
The companies also admitted that in late 2005 Avon learned that Avon China was routinely providing things of value to Chinese government officials and failing to properly document them. Instead of ensuring the practice was halted, fixing the false books and records, disciplining the culpable individuals, and implementing appropriate controls to address this problem, the companies took steps to conceal the conduct, despite knowing that Avon China’s books and records, and ultimately Avon’s books and records, would continue to be inaccurate.
Court filings acknowledge Avon’s cooperation with the department, including conducting an extensive internal investigation, voluntarily making U.S. and foreign employees available for interviews, and collecting, analyzing, translating and organizing voluminous evidence.
The case is being investigated by the FBI’s Washington Field Office, and prosecuted by Senior Trial Attorney Laura Perkins of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Sarah Paul of the Southern District of New York. The Justice Department expresses its appreciation for the significant assistance provided by the SEC’s Division of Enforcement in this investigation.
Ashburn Resident Pleads Guilty to Filing Fraudulent Tax ReturnsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Timothy D. Wilburn, aged 32, of Ashburn, Georgia, entered a guilty plea to wire fraud and aggravated identity theft on December 15, 2014, before the Honorable W. Louis Sands, U.S. District Court Judge, in Albany, Georgia.Mr. Wilburn pled guilty to one count of wire fraud and one count of aggravated identity theft. The former carries a maximum sentence of 20 years imprisonment and a $250,000 fine or both, while the latter requires a sentence of at least two years imprisonment consecutive to any other sentence and a fine of up to $250,000, or both. He will be sentenced in about 60 days.
Mr. Wilburn devised and executed a scheme whereby he submitted over seventy false income tax returns involving the names and identities of actual persons. He received the refunds from these returns and converted same to his own use. His scheme was uncovered when officers of the Albany Police Department, responding to a burglary report at his house, found evidence of the false returns in the house during the course of their investigation of the purported burglary. Evidence of illegal refunds of over $120,000 was found.
“Mr. Wilburn essentially engaged in an identity fraud scheme to cheat the government, without regard to the pain and financial hardship it would and did bring to the persons whose identities he usurped. Only the alertness of the law enforcement officers who went to his residence in response to an unrelated burglary report brought this devious scheme to an end. My office will continue to vigorously prosecute cases such as this which victimize both the tax paying public and the innocent individuals who have their lives disrupted through the theft of their identities,” said U.S. Attorney Michael Moore.The case was investigated by the Internal Revenue Service, Criminal Investigation and the Ashburn Police Department. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Armed Robber Gets Lengthy Prison TermRead the Press Release
PHILADELPHIA – Derrick Godfrey, 45, of Philadelphia, was sentenced today to 509 months in prison, for an armed robbery spree over two days in June 2012, involving three communities. Godfrey was convicted June 27, 2014 of three counts of Hobbs Act Robbery and one count of brandishing a handgun during the second robbery. In addition to the prison term, U.S. District Court Judge J. Curtis Joyner ordered five years of supervised release, a $500 special assessment and restitution of $860.
On June 1, 2012, shortly before 5:00 p.m., Godfrey robbed the Pennsylvania Wine & Spirits Shoppe, at 7146 Ridge Ave, in Philadelphia. He ordered the employees to turn over the cash contained in the store’s three registers. He stole $1,074 from the store which he placed in a multi-colored bag he was carrying. The next day, shortly before noon, Godfrey robbed the Pennsylvania Wine & Spirits Store at 504 West Marshall Street, Norristown, Pennsylvania. The store manager reported that the robber, wearing a black hooded sweatshirt and brandishing a gun, entered the office area of the store and ordered the store clerk to empty the contents of the store safe into a multi-colored bag that he was carrying. That robbery netted Godfrey approximately $400 from the safe and another $200 from the cash registers. About 20 minutes later, Godfrey robbed the Dunkin’ Donuts store at 1941 West Main Street, West Norriton, Pennsylvania. He walked into the store and ordered employees to empty contents of the cash registers into a multi-colored bag that he was carrying. Godfrey stole approximately $318 in that robbery.A short time later, East Norriton Township Police officers stopped the getaway car several miles from the Dunkin’ Donuts. Eyewitnesses identified Godfrey as the gunman and the car in which he was a passenger as the getaway car. Police searched the car and found the handgun which bore Godfrey’s DNA, several changes of clothing, a multi-colored shopping bag as described by the victims of the three armed robberies, and a black plastic bag with more cash.
The case was investigated by the FBI, the East Norriton Township Police Department, the Norristown Police Department, the Philadelphia Police Department, the West Norriton Township Police Department, the Montgomery County District Attorney’s Office, and the Montgomery County Detective Bureau. It was prosecuted by Special Assistant United States Attorneys Rebecca Strubel and Matthew Quigg.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Albuquerque Man Sentenced to Ten Years for Using a Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
Chavez Prosecuted as Part of Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – Ronald Lewis Chavez, 46, of Albuquerque, N.M., was sentenced yesterday afternoon to ten years in federal prison for his conviction for using a firearm in furtherance of a drug trafficking crime. He will be on supervised release for five years after he completes his prison sentence.
Chavez was arrested on Jan. 27, 2014, on a criminal complaint charging him with possession of methamphetamine with intent to distribute and possession of a firearm by a convicted felon. Chavez subsequently was indicted in Feb. 2014, charging him with possession with intent to distribute methamphetamine, using a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm and ammunition.
According to court filings, law enforcement officers seized a handgun found underneath the mattress of Chavez’ bed and ammunition concealed in two black boxes next to the bed when they executed a search warrant at his residence in southwest Albuquerque on Jan. 24, 2014. Officers also seized plastic bags containing methamphetamine from a fanny pack buckled around Chavez’ torso.
Chavez pled guilty on Sept. 15, 2014, to using a firearm in furtherance of a drug trafficking crime. He admitted possessing a semiautomatic pistol during and in relation to a drug trafficking crime. Chavez also admitted to possessing methamphetamine with intent to distribute.
Chavez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This case was investigated by the Albuquerque offices of the DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Louis E. Valencia prosecuted the case.
14 Indicted in Connection with New England Compounding Center and Nationwide Fungal Meningitis OutbreakRead the Press Release
A 131-count criminal indictment was unsealed today in Boston in connection with the 2012 nationwide fungal meningitis outbreak, the Justice Department announced. Barry J. Cadden, owner and head pharmacist of New England Compounding Center (NECC) and NECC’s supervisory pharmacist Glenn A. Chin were charged with 25 acts of second-degree murder in Florida, Indiana, Maryland, Michigan, North Carolina, Tennessee and Virginia.
The outbreak was caused by contaminated vials of preservative-free methylprednisolone acetate (MPA) manufactured by NECC, located in Framingham, Massachusetts. The U.S. Centers for Disease Control and Prevention (CDC) reported that 751 patients in 20 states were diagnosed with a fungal infection after receiving injections of NECC’s MPA. Of those 751 patients, the CDC reported that 64 patients in nine states died.
Twelve other individuals, all associated with NECC, including six other pharmacists, the director of operations, the national sales director, an unlicensed pharmacy technician, two of NECC’s owners, and one other individual were charged with additional crimes including racketeering, mail fraud, conspiracy, contempt, structuring, and violations of the Food, Drug and Cosmetic Act.
“As alleged in the indictment, these employees knew they were producing their medication in an unsafe manner and in insanitary conditions, and authorized it to be shipped out anyway, with fatal results,” said Attorney General Eric Holder. “With the indictment and these arrests, the Department of Justice is taking decisive action to hold these individuals accountable for their alleged participation in grievous wrongdoing. Actions like the ones alleged in this case display not only a reckless disregard for health and safety regulations, but also an extreme and appalling indifference to human life. American consumers have a right to know that their medications are safe to use, and this case proves that the Department of Justice will always stand resolute to ensure that right, to protect the American people, and to hold wrongdoers accountable to the fullest extent of the law.”
“Every patient receiving treatment deserves the peace of mind and knowledge that the medicine they are receiving is safe,” said Acting Associate Attorney General Stuart Delery. “When people and companies violate that trust and break the law, the consequences to patients and their families can be catastrophic. That’s why it remains a priority of the Department to use every tool at our disposal to protect patients’ safety and hold bad actors accountable.”
“Those who produce and sell the drugs that we take have a special responsibility to make sure that they prepare those drugs under suitable conditions, and that what leaves their facilities is safe,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The indictment charges that the defendants’ conduct in this case was corrupt and carried out with a complete disregard to the public’s health. The department‘s Consumer Protection Branch along with our law enforcement partners is steadfast in our commitment to use every criminal and civil tool at our disposal to hold accountable those who are willing to put our lives at risk in the reckless pursuit of their profits.”
“Ever since the outbreak occurred, we have been committed to bringing to justice the individuals responsible for the deaths and suffering of so many innocent victims,” said U.S. Attorney Carmen Ortiz for the District of Massachusetts. “The indictment announced today is the first step in that process which addresses alleged criminal wrongdoing at NECC, a business that prioritized production and profit over safety. We will make every effort to ensure that licensed pharmacists, and those working with them, are held to a standard of care that protects the public from unsafe and dangerous medications.”
“Two years after the fungal meningitis outbreak, our hearts continue to go out to the victims of this tragedy and to their families,” said FDA Commissioner Margaret A. Hamburg M.D. “Our work on behalf of all patients who want and deserve medicines that do not subject them to undue risk is far from done. The FDA will continue to work aggressively on many fronts with the states, the Department of Justice, and others to protect the American public from unsafe compounded drug products.”
“Threats to public health, as alleged in today's indictment, are a priority for the FBI,” said Assistant Director Joseph S. Campbell of the FBI’s Criminal Division. “Together with our law enforcement and regulatory agency partners, we are determined to stop practices that jeopardize patients' health and violate the public trust. These types of investigations are complex and resource intensive. We greatly appreciate the efforts of our partners in this case and look forward to working with them to effectively identify criminal activities and combat fraudulent and abusive health practices in the future.”
The 14 individuals charged in the indictment are Barry J. Cadden, 48, of Wrentham, Massachusetts; Glenn A. Chin, 46, of Canton, Massachusetts; Gene Svirskiy, 33, of Ashland, Massachusetts; Christopher M. Leary, 30, of Shrewsbury, Massachusetts; Joseph M. Evanosky, 42, of Westford, Massachusetts; Scott M. Connolly, 42, of East Greenwich, Rhode Island; Sharon P. Carter, 50, of Hopkinton, Massachusetts; Alla V. Stepanets, 34, of Framingham, Massachusetts; Gregory A. Conigliaro, 49 of Southborough, Massachusetts; Robert A. Ronzio, 40, of North Providence, Rhode Island; Kathy Chin, 42, of Canton, Massachusetts; Michelle Thomas, 31 of Cumberland, Rhode Island; Carla Conigliaro, 51, of Dedham, Massachusetts and Douglas A. Conigliaro, 53, of Dedham, Massachusetts.
The 25 second-degree murders are included in the indictment as predicate racketeering acts under the Racketeer Influenced and Corrupt Organizations Act (RICO). These charges relate to patients who received NECC MPA and died in Florida, Indiana, Maryland, Michigan, North Carolina, Tennessee and Virginia. As a general matter, and depending on particular state law, second-degree murder does not require the government to prove Cadden and Chin had specific intent to kill the 25 patients, but rather that Cadden and Chin acted with extreme indifference to human life. According to the indictment, Cadden and Chin knew that NECC was making MPA in a manner and in an environment in which they could not assure that the drug was sterile as it was identified to be. Despite knowing that they were making the MPA in an unsafe manner and in insanitary conditions, Cadden and Chin nonetheless allegedly directed and authorized the shipping of MPA to NECC customers nationwide. It is alleged that Cadden and Chin were aware that doctors would inject MPA into their patients’ bodies, and that if the MPA was not in fact sterile, it could kill them.
The 25 murder racketeering acts comprise only a portion of the broad racketeering scheme charged in the indictment. The indictment also alleges that NECC’s other pharmacists knowingly made and sold numerous drugs in a similar unsafe manner and in insanitary conditions. The unsafe manner alleged in the indictment includes, among other things, the pharmacists’ failure to properly sterilize NECC’s drugs, failure to properly test NECC’s drugs for sterility, and failure to wait for test results before sending the drugs to customers. The insanitary conditions alleged in the indictment include, among other things, NECC’s lack of proper cleaning and NECC’s failure to take any action when its own environmental monitoring repeatedly detected mold and bacteria within NECC’s clean room suite of rooms throughout 2012.
It is further alleged that NECC repeatedly took steps to shield its operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. The indictment alleges that NECC even used fictional and celebrity names on fake prescriptions to dispense drugs.
Finally, the indictment charges Carla Conigliaro, the majority shareholder of NECC, and her husband Douglas Conigliaro with transferring assets following the fungal meningitis outbreak. Specifically, the indictment charges that after NECC declared bankruptcy, and the bankruptcy court ordered the shareholders not to transfer assets, Carla and Doug Conigliaro transferred approximately $33.3 million to eight different bank accounts opened after the NECC bankruptcy.
Cadden and Chin face a maximum of up to life in prison if convicted on all counts.
“Although no VA patients were affected by the fungal meningitis outbreak, VA unknowingly purchased a variety of pharmaceutical products over a three year period from NECC that were intentionally produced in an unsafe manner under insanitary conditions,” said Assistant Inspector General for Investigations James J. O’Neill for the Office of Inspector General, Department of Veterans Affairs. “We are pleased to have contributed to this outstanding multi-agency criminal investigation.”
“Today's results are part of an ongoing effort by the Defense Criminal Investigative Service and its law enforcement partners to protect the integrity of the Department of Defense's health care program and the quality of care our service members receive,” said Deputy Inspector General for Investigations James B. Burch for the U.S. Department of Defense Office of the Inspector General. “The Defense Criminal Investigative Service will continue to pursue allegations of health care fraud that put the Warfighter at risk.”
“The U.S. Postal Inspection Service is pleased to join our federal partners in this announcement” said Postal Inspector in Charge Shelly A. Binkowski of the Boston Division. “What's particularly disturbing about this case is that through their alleged misrepresentation and greed, these defendants put the health and well-being of others at a high level of risk. This criminal action today demonstrates the commitment and vigilance of postal inspectors and other federal agents to pursue criminals who prey on the public in such an egregious way.”
In announcing the indictment today, Attorney General Holder and U.S. Attorney Ortiz acknowledged the assistance and cooperation of Michigan State Attorney General Bill Schuette. The state of Michigan had the most deaths during the outbreak.
The investigation was conducted by the FDA Office of Criminal Investigations and the FBI with assistance by the Defense Criminal Investigative Service, U.S. Department of Defense, Office of Inspector General; Department of Veterans Affairs Office of Inspector General and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of the Health Care Fraud Unit for the U.S. Attorney’s Office in the District of Massachusetts, and Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Victims with questions about today’s charges may call 1-888-221-6023 or email [email protected].
14 Indicted in Connection with New England Compounding Center and Nationwide Fungal Meningitis OutbreakRead the Press Release
WASHINGTON – A 131-count criminal indictment was unsealed today in Boston in connection with the 2012 nationwide fungal meningitis outbreak, the Justice Department announced. Barry J. Cadden, owner and head pharmacist of New England Compounding Center (NECC) and NECC’s supervisory pharmacist Glenn A. Chin were charged with 25 acts of second-degree murder in Florida, Indiana, Maryland, Michigan, North Carolina, Tennessee and Virginia.
The outbreak was caused by contaminated vials of preservative-free methylprednisolone acetate (MPA) manufactured by NECC, located in Framingham, Massachusetts. The U.S. Centers for Disease Control and Prevention (CDC) reported that 751 patients in 20 states were diagnosed with a fungal infection after receiving injections of NECC’s MPA. Of those 751 patients, the CDC reported that 64 patients in nine states died.
Twelve other individuals, all associated with NECC, including six other pharmacists, the director of operations, the national sales director, an unlicensed pharmacy technician, two of NECC’s owners, and one other individual were charged with additional crimes including racketeering, mail fraud, conspiracy, contempt, structuring, and violations of the Food, Drug and Cosmetic Act.
“As alleged in the indictment, these employees knew they were producing their medication in an unsafe manner and in insanitary conditions, and authorized it to be shipped out anyway, with fatal results,” said Attorney General Eric Holder. “With the indictment and these arrests, the Department of Justice is taking decisive action to hold these individuals accountable for their alleged participation in grievous wrongdoing. Actions like the ones alleged in this case display not only a reckless disregard for health and safety regulations, but also an extreme and appalling indifference to human life. American consumers have a right to know that their medications are safe to use, and this case proves that the Department of Justice will always stand resolute to ensure that right, to protect the American people, and to hold wrongdoers accountable to the fullest extent of the law.”
“Every patient receiving treatment deserves the peace of mind and knowledge that the medicine they are receiving is safe,” said Acting Associate Attorney General Stuart Delery. “When people and companies violate that trust and break the law, the consequences to patients and their families can be catastrophic. That’s why it remains a priority of the Department to use every tool at our disposal to protect patients’ safety and hold bad actors accountable.”
“Those who produce and sell the drugs that we take have a special responsibility to make sure that they prepare those drugs under suitable conditions, and that what leaves their facilities is safe,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The indictment charges that the defendants’ conduct in this case was corrupt and carried out with a complete disregard to the public’s health. The department‘s Consumer Protection Branch along with our law enforcement partners is steadfast in our commitment to use every criminal and civil tool at our disposal to hold accountable those who are willing to put our lives at risk in the reckless pursuit of their profits.”“Ever since the outbreak occurred, we have been committed to bringing to justice the individuals responsible for the deaths and suffering of so many innocent victims,” said U.S. Attorney Carmen Ortiz for the District of Massachusetts. “The indictment announced today is the first step in that process which addresses alleged criminal wrongdoing at NECC, a business that prioritized production and profit over safety. We will make every effort to ensure that licensed pharmacists, and those working with them, are held to a standard of care that protects the public from unsafe and dangerous medications.”
“Two years after the fungal meningitis outbreak, our hearts continue to go out to the victims of this tragedy and to their families,” said FDA Commissioner Margaret A. Hamburg M.D. “Our work on behalf of all patients who want and deserve medicines that do not subject them to undue risk is far from done. The FDA will continue to work aggressively on many fronts with the states, the Department of Justice, and others to protect the American public from unsafe compounded drug products.”
“Threats to public health, as alleged in today's indictment, are a priority for the FBI,” said Assistant Director Joseph S. Campbell of the FBI’s Criminal Division. “Together with our law enforcement and regulatory agency partners, we are determined to stop practices that jeopardize patients' health and violate the public trust. These types of investigations are complex and resource intensive. We greatly appreciate the efforts of our partners in this case and look forward to working with them to effectively identify criminal activities and combat fraudulent and abusive health practices in the future.”
The 14 individuals charged in the indictment are Barry J. Cadden, 48, of Wrentham, Massachusetts; Glenn A. Chin, 46, of Canton, Massachusetts; Gene Svirskiy, 33, of Ashland, Massachusetts; Christopher M. Leary, 30, of Shrewsbury, Massachusetts; Joseph M. Evanosky, 42, of Westford, Massachusetts; Scott M. Connolly, 42, of East Greenwich, Rhode Island; Sharon P. Carter, 50, of Hopkinton, Massachusetts; Alla V. Stepanets, 34, of Framingham, Massachusetts; Gregory A. Conigliaro, 49 of Southborough, Massachusetts; Robert A. Ronzio, 40, of North Providence, Rhode Island; Kathy Chin, 42, of Canton, Massachusetts; Michelle Thomas, 31 of Cumberland, Rhode Island; Carla Conigliaro, 51, of Dedham, Massachusetts and Douglas A. Conigliaro, 53, of Dedham, Massachusetts.
The 25 second-degree murders are included in the indictment as predicate racketeering acts under the Racketeer Influenced and Corrupt Organizations Act (RICO). These charges relate to patients who received NECC MPA and died in Florida, Indiana, Maryland, Michigan, North Carolina, Tennessee and Virginia. As a general matter, and depending on particular state law, second-degree murder does not require the government to prove Cadden and Chin had specific intent to kill the 25 patients, but rather that Cadden and Chin acted with extreme indifference to human life. According to the indictment, Cadden and Chin knew that NECC was making MPA in a manner and in an environment in which they could not assure that the drug was sterile as it was identified to be. Despite knowing that they were making the MPA in an unsafe manner and in insanitary conditions, Cadden and Chin nonetheless allegedly directed and authorized the shipping of MPA to NECC customers nationwide. It is alleged that Cadden and Chin were aware that doctors would inject MPA into their patients’ bodies, and that if the MPA was not in fact sterile, it could kill them.
The 25 murder racketeering acts comprise only a portion of the broad racketeering scheme charged in the indictment. The indictment also alleges that NECC’s other pharmacists knowingly made and sold numerous drugs in a similar unsafe manner and in insanitary conditions. The unsafe manner alleged in the indictment includes, among other things, the pharmacists’ failure to properly sterilize NECC’s drugs, failure to properly test NECC’s drugs for sterility, and failure to wait for test results before sending the drugs to customers. The insanitary conditions alleged in the indictment include, among other things, NECC’s lack of proper cleaning and NECC’s failure to take any action when its own environmental monitoring repeatedly detected mold and bacteria within NECC’s clean room suite of rooms throughout 2012.
It is further alleged that NECC repeatedly took steps to shield its operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions. The indictment alleges that NECC even used fictional and celebrity names on fake prescriptions to dispense drugs.
Finally, the indictment charges Carla Conigliaro, the majority shareholder of NECC, and her husband Douglas Conigliaro with transferring assets following the fungal meningitis outbreak. Specifically, the indictment charges that after NECC declared bankruptcy, and the bankruptcy court ordered the shareholders not to transfer assets, Carla and Doug Conigliaro transferred approximately $33.3 million to eight different bank accounts opened after the NECC bankruptcy.
Cadden and Chin face a maximum of up to life in prison if convicted on all counts.
“Although no VA patients were affected by the fungal meningitis outbreak, VA unknowingly purchased a variety of pharmaceutical products over a three year period from NECC that were intentionally produced in an unsafe manner under insanitary conditions,” said Assistant Inspector General for Investigations James J. O’Neill for the Office of Inspector General, Department of Veterans Affairs. “We are pleased to have contributed to this outstanding multi-agency criminal investigation.”
“Today's results are part of an ongoing effort by the Defense Criminal Investigative Service and its law enforcement partners to protect the integrity of the Department of Defense's health care program and the quality of care our service members receive,” said Deputy Inspector General for Investigations James B. Burch for the U.S. Department of Defense Office of the Inspector General. “The Defense Criminal Investigative Service will continue to pursue allegations of health care fraud that put the Warfighter at risk.”
“The U.S. Postal Inspection Service is pleased to join our federal partners in this announcement” said Postal Inspector in Charge Shelly A. Binkowski of the Boston Division. “What's particularly disturbing about this case is that through their alleged misrepresentation and greed, these defendants put the health and well-being of others at a high level of risk. This criminal action today demonstrates the commitment and vigilance of postal inspectors and other federal agents to pursue criminals who prey on the public in such an egregious way.”
In announcing the indictment today, Attorney General Holder and U.S. Attorney Ortiz acknowledged the assistance and cooperation of Michigan State Attorney General Bill Schuette. The state of Michigan had the most deaths during the outbreak.
The investigation was conducted by the FDA Office of Criminal Investigations and the FBI with assistance by the Defense Criminal Investigative Service, U.S. Department of Defense, Office of Inspector General; Department of Veterans Affairs Office of Inspector General and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of the Health Care Fraud Unit for the U.S. Attorney’s Office in the District of Massachusetts, and Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Victims with questions about today’s charges may call 1-888-221-6023 or email [email protected].
Tuesday 16 December 2014
“Molly” Trafficking Ring Dismantled, Leader Sentenced to More Than Twelve Years in PrisonRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp today sentenced Justin Brian Smith (28, Orlando) to 12 years and 7 months in federal prison for conspiracy to distribute Methylone. He pleaded guilty on July 7, 2014. Six additional members of the drug trafficking ring previously pleaded guilty and were also sentenced today for the same offense. Dylan Tash (21, Orlando) was sentenced to seven years and four months in federal prison. Janette Leonard (34, Orlando) was sentenced to five years and three months in federal prison. Takayuki Sakairi (28, Orlando) and Nathalie Zuanetti (27, Orlando) each received a sentence of four years and nine months’ imprisonment. Brian Marmorstone (26, Orlando) was sentenced to two years and nine months in federal prison, and Paul Stebenne (42, Oviedo) was sentenced to two years and six months in federal prison.
According to court documents, in 2011, Smith began purchasing Methylone, a club drug often referred to as “Molly,” in bulk from a source in China. Smith would arrange for the drug packages to be shipped to him and to other co-conspirators, including Sakairi, Marmorstone, Zuanetti, Tash, and Leonard. Zuanetti, Tash, Leonard, and Stebenne then assisted Smith in distributing the drugs to other individuals.
The investigation culminated with a controlled delivery of approximately 72 kilograms of Methylone to Tash on January 10, 2014. In addition, agents seized and administratively forfeited approximately $42,000 in cash from Smith’s residence. During the course of the investigation, agents seized a total of approximately 280 kilograms of Methylone that had been ordered by Smith and sent to him and his accomplices.
DEA Acting Special Agent in Charge A.D. Wright stated, “Today’s actions should be a warning call to those who peddle these dangerous drugs to make a quick buck by preying on party-goers. The DEA remains focused on keeping our citizens safe and these dangerous drugs out of our communities.”
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.
Wyoming Businessman Sentenced for Obstructing the Internal Revenue ServiceRead the Press Release
On Dec. 15, 2014, a Casper, Wyoming, man was sentenced to serve one year and one day in prison for tax fraud by U.S. District Court Judge Alan B. Johnson in the District of Wyoming.
Sonny Pilcher pleaded guilty on June 2, 2014, to one count of obstructing the administration of the internal revenue laws. During his guilty plea hearing, Pilcher admitted that he claimed a false expense of $258,000 for a repaid business loan on his tax return for 2008, and, over several years, he paid his employees in cash to evade employment taxes.
At the sentencing hearing, the government’s evidence showed that Pilcher impeded the Internal Revenue Service (IRS) by destroying income records for his business, CC Cowboys, commingling money between bank accounts of separate businesses, and creating 242 fraudulent invoices totaling $3.9 million. The evidence showed that in 2007 and 2008, Pilcher received approximately $750,000 from the fraudulent invoices, which was not reported on his income tax returns. In a previous interview with the IRS special agent investigating the case, Pilcher admitted that he did not have a personal bank account and that he only ever used cash to pay for his living expenses.
Pilcher was also sentenced to one year of supervised release following his prison term and required to pay a $10,000 fine.
This case was investigated by special agents in the Cheyenne, Wyoming, office of IRS-Criminal Investigation and was prosecuted by Trial Attorneys Lori A. Hendrickson and Ignacio Perez de la Cruz of the Justice Department’s Tax Division.
Wheeling Businessman Convicted of Defrauding Mortgage CustomersRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Wheeling businessman Mark C. Busack was convicted today on charges that the defrauded customers of his mortgage brokerage business, United States Attorney William J. Ihlenfeld, II, announced.
Busack, age 51, pled guilty this morning to four counts of “Use of an Unauthorized Access Device” and one count of “Filing a False S Corporation Income Tax Return.” He faces up to ten years in prison and fine of up to $250,000.00 on each of the four access device counts and up to three years in prison and fine of up to $100,000.00 on the tax charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
By pleading guilty, Busack admitted to a scheme to defraud his mortgage customers by making hundreds of unauthorized charges to credit and debit accounts amounting to hundreds of thousands of dollars in fraudulent activity. He also admitted to underreporting his income in 2012 by $309,949.42.
The matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation Section, the Ohio County Sheriff’s Department and the Wheeling Police Department.
United States Attorney Ihlenfeld and Assistant U.S. Attorney Jarod J. Douglas are prosecuting the case on behalf of the federal government.
Senior U.S. District Judge Frederick P. Stamp presided.
Waterloo Man Sentenced on Methamphetamine ChargesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that a Waterloo, Illinois, man, convicted of Conspiracy to Distribute Methamphetamine and Distribution of Methamphetamine, was sentenced to 70 months in federal prison on December 11, 2014. Shawn Buckley, 32, received his 70 month sentence for offenses which occurred in St. Clair County, IL, and in St. Louis, MO. Buckley pled guilty to those offenses on August 20, 2014. Following release from imprisonment, Buckley will serve a 4 year term of supervised release. Buckley was also ordered to pay a $200 fine and a $200 special assessment. Buckley has been in custody since his arraignment on September 25, 2013.
Evidence in support of this prosecution was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Agencies participating in this case include the Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigations, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and U.S. Marshal Service. This case was prosecuted by Assistant United States Attorney Donald S. Boyce.