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5 February 2015
Hartford Man Sentenced to More Than 7 Years in Prison for Drug Distribution, Illegal Gun PossessionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that VINCENT NELSON, also known as “June,” 29, of Hartford, was sentenced yesterday by U.S. District Judge Robert N. Chatigny in Hartford to 90 months of imprisonment, followed by four years of supervised release, for distributing narcotics and illegally possessing firearms.
According to court documents and statements made in court, this matter stems from an FBI Northern Connecticut Violent Crime and Gang Task Force investigation targeting gang and drug related activity in Hartford’s South End. Beginning in November 2012, investigators made controlled purchases of crack cocaine from NELSON and his associate, Steven Granger, in the South End. NELSON and Granger were identified by investigators as members of Money Green/Bedroc, a gang that at a time controlled the Bedford and Green Street neighborhoods off Albany Avenue in Hartford’s North End. Money Green/Bedroc’s principal rival, the AVE, controlled the narcotics activity in adjacent neighborhoods, and the long standing dispute between the two gangs caused violent activity, including shootings and murders, in the area from 2008 until 2012.
NELSON’s criminal history includes multiple felony convictions, including a conviction for first degree assault for which he was sentenced to five years of imprisonment in 2009.
NELSON, Granger and another associate, Hector Alfonso of East Hartford, were arrested on January 23, 2013. On that date, court-authorized searches of NELSON’s residence at 2 Warner Street Extension and Granger’s residence at 52 Elliott Street resulted in the seizure of three handguns, assorted ammunition, body armor, approximately 300 grams of crack cocaine, approximately 300 grams of cocaine, a small quantity of heroin, narcotics packaging material and $45,736 in cash. Investigators also seized two vehicles.
NELSON has been detained since his arrest. On July 9, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 28 grams or more of cocaine base (“crack”), and one count of possession of a firearm and ammunition by a convicted felon.
Granger and Alfonso also pleaded guilty and previously were sentenced to prison terms of 60 months and 18 months, respectively.
The matter was investigated by the FBI’s Northern Connecticut Violent Crimes Gang Task Force, which includes representatives of the FBI, Connecticut State Police, the Hartford Police Department and the Connecticut Department of Correction, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Brian P. Leaming.
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(203) 821-3722 [email protected]Guatemalan National Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ESWIN ESTUARDO MARTINEZ-REYES, age 42, a citizen of Guatemala, pled guilty yesterday to a one-count Indictment for illegal reentry of removed alien.
According to the Indictment, on or about December 2, 2014, MARTINEZ-REYES was found in the United States after having been officially deported and removed on or about June 7, 2013.
MARTINEZ-REYES faces a maximum term of imprisonment of two years, a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Sarah S. Vance set sentencing for March 18, 2015.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, U.S. Border Patrol in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Gillian A. Gallardo Charged with Military Housing Allowance FraudRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Gillian A. Gallardo, age 29, stationed on board Andersen Air Force Base, Guam, has been indicted by a federal grand jury on February 4, 2015, with two counts of theft of government money (18 U.S.C. § 641), two counts of fraudulent claim against the United States (18 U.S.C. § 287), and two counts of false statement to a federal government agency (18 U.S.C. § 1001). For each count of theft of government money, the maximum sentence under the statute is 10 years in prison and a $250,000 fine. For each count of fraudulent claim against the United States and each count of false statement to a federal government agency, the maximum sentence under the statute is 5 years in prison and a $250,000 fine. A summons was issued for Gallardo to appear in federal court on February 18, 2015, for her arraignment.
The indictment alleges that on November 27, 2012, Gallardo, an active duty Staff Sergeant in the U.S. Air Force, knowingly submitted false Overseas Housing Allowance documentation to the Defense Finance and Accounting Service (DFAS) that falsely claimed that Gallardo paid $2,450 in rent every month for her supposed occupancy of a certain residence in Yigo. In reality, Gallardo lived rent-free at an entirely different address in Dededo and pocketed the OHA funds.
Military members who are active duty or activated reservists or activated National Guardsmen are eligible to receive a tax-free housing allowance known as Overseas Housing Allowance (OHA). The amount of OHA compensation that an active duty military member can receive is determined by the actual amount of money the individual is paying for housing costs, up to a maximum amount determined by the individual’s rank and whether or not the individual has dependents. In Gallardo’s case, the maximum rental amount for which she could be compensated was $2,450.
The indictment further alleges that from October 1, 2012 through April 30, 2013, Gallardo received tax-free reimbursement for her fraudulent rental payments as well as tax-free reimbursements for utility expenses, which totaled approximately $21,501.90. To corroborate her OHA claim, Gallardo presented a false lease agreement to DFAS that falsely stated that Gallardo paid $2,450.00 every month in rent for her occupancy of this Yigo residence.
The indictment further alleges that on May 13, 2013, Gallardo again knowingly submitted false OHA documentation to DFAS that falsely claimed that Gallardo and another active duty Air Force Staff Sergeant paid a total of $4,400 in rent every month for their occupancy of their residence in Dededo. Relying on the OHA documentation Gallardo submitted, DFAS paid tax-free OHA reimbursement for the $2,200 she supposedly paid for her share of the rent every month. In reality, Gallardo and the other Staff Sergeant had a secret arrangement with their landlord to pay a significantly reduced amount of rent each month so that they could each pocket the remaining OHA payments.
From May 1, 2013 through March 31, 2014, Gallardo received tax-free reimbursement for her fraudulent rental payments as well as tax-free reimbursements for utility expenses, which totaled approximately $29,231.20. To corroborate this OHA claim, Gallardo again presented a false lease agreement to DFAS that falsely stated that Gallardo paid $2,200.00 every month in rent for her occupancy of this Dededo residence. The total amount of OHA payments Gallardo fraudulently received was $50,733.10.
This case is the result of an investigation conducted by the Air Force Office of Special Investigations. The prosecution is being handled by Special Assistant U.S. Attorney Kurt Grunawalt.
The charges in the Indictment are only allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Men Sentenced for Multi-Million Dollar Mortgage and Consumer Fraud SchemeRead the Press Release
STATESVILLE, N.C. – On Wednesday, February 4, 2015, U.S. District Judge Richard L. Voorhees sentenced four defendants involved in a consumer and mortgage fraud conspiracy which resulted in multi-million dollar losses for consumers and federal agencies, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Today’s sentences are the result of an investigation into a fraudulent mortgage and consumer fraud scheme committed by executives and employees of Phoenix Housing Group (“PHG”) and related lenders. The scheme caused multi-million dollar losses for consumers and federal agencies, including home buyers, the lenders that financed the home sales, and the U.S. Department of Housing and Urban Development (“HUD”) and U.S. Department of Agriculture (“USDA”), which guaranteed the loans.
Joseph (“Joey”) Klakulak, 36, of Charlotte, was sentenced to 30 months in prison, two years of supervised release and was ordered to pay $5,635,384.81 as restitution. Dennis Parris Wayne, 57, of Pinehurst, N.C. was sentenced to 24 months in prison, two years of supervised release and was ordered to pay $24,087,187.34 as restitution. Isaac “Ike” Vinson, IV, 47, of Murrells Inlet, S.C. was sentenced to 24 months in prison, two years of supervised release and was ordered to pay $6,625,841.24 as restitution. And, Andrew B. McKeown, 40, of Asheboro, N.C. was sentenced to a two year probationary term, with the first six months to be served in home confinement. McKeown was also ordered to pay $4,333,076.87 as restitution.
According to filed documents and statements made in court today, Parris was a former PHG Senior Vice President. Vinson was a former loan officer and manager for W.R. Starkey Mortgage (“WRSM”), McKeown was a former Sales Manager, and Klakulak was a Charlotte-based former loan officer for numerous lenders, including WRSM.
Court records indicate that from approximately 2004 to 2010, Parris, Vinson, McKeown, Klakulak, and related conspirators Roger Bailey, Marina McCuen and Fabian Sparrow originated hundreds of fraudulent HUD/FHA-insured and USDA-insured mortgage loans totaling more than $150 million and resulting in net losses of over $21 million to the United States and more than $3.3 million to consumers.
According to court records, the defendants convinced customers to purchase manufactured homes which they could not afford by misrepresenting the financing terms of the loans. Court records show that the conspirators secured loans for the unqualified consumers by providing lenders with documents that contained fraudulent customer information, such as false income, assets, and credit. According to court records, in some instances defendants also obtained inflated appraisals, misrepresented the source of down payment funds, and coerced consumers to sign closing documents. At times, the defendants also collected down payment money for which borrowers received no credit.
In handing down the defendants’ sentencings, Judge Voorhees noted the exceptional losses families “suffered as a result of unrealistic and ill-motivated procedures foisted on them.”
Klakulak pleaded guilty in August 2013 to conspiracy to make false statements to a federal agency and submit false statements to HUD. Parris and Vinson pleaded guilty in April 2014 and November 2014, respectively, to conspiracy to make false statements to a federal agency, submit false statements to HUD and destroy records in a federal investigation. McKeown pleaded guilty in January 2014 to concealing the conspiracy to defraud the government and consumers.
In August 2014, Marina McCuen, 51, of Asheville, N.C., and Roger Bailey, 42, of Hickory, were sentenced to 50 months and 30 months in prison, respectively. McCuen was a WRSM loan officer and Bailey was a sales manager of PHG’s sales center in Granite Falls. In addition to their prison terms, all defendants are barred from participating in mortgage lending.
The last conspirator charged in connection with this case, Fabian Sparrow, 36, of Burlington, N.C. has pleaded guilty to conspiracy to make false statements to a federal agency and submit false statements to HUD and is currently awaiting sentencing. Sparrow was a sales manager at PHG’s sales center in Burlington. In January 2011, PHG ceased business operations as part of a settlement with the Consumer Protection Division of the North Carolina Attorney General’s office.
Following the sentencing hearings, the defendants were ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Tompkins thanked the multiple agencies involved in the investigation:
Office of the Inspector General, Office of Investigation of the Department of Housing and Urban Development (HUD-OIG); Office of the Inspector General, Office of Investigation of the U.S. Department of Agriculture (USDA-OIG); Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS); North Carolina Attorney General’s Office; and North Carolina Commissioner of Banks (NCCOB). U.S. Attorney Tompkins also thanked the United States Marshals Service for their substantial assistance in financial analysis and the Department of State for their assistance in the apprehension of Sparrow when he fled the United States for Doha, Qatar.
The prosecution for the case was handled by Assistant United States Attorneys Michael Savage and Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte.
Former University of Kentucky Professor Pleads Guilty to Wire FraudRead the Press Release
LEXINGTON, KY - Dongping “Daniel” Tao, a former mining engineering professor at the University of Kentucky, admitted in federal court today that he defrauded the University out of tens of thousands of dollars, in items and services.
Tao, 54, pleaded guilty to one count of wire fraud, before U.S. District Judge Karen Caldwell. Tao also admitted that he defrauded Georgia-Pacific, LLC, a private company for whom he worked as a consultant.
Tao acknowledged that he received grant money from the University that was intended for research, on behalf of the College of Engineering, but Tao used the money for his consulting business, paying for travel, materials, and services. Tao then sought payment from his consulting clients, as reimbursement for expenses that he had actually used the University’s money to pay.
Tao also admitted that he fabricated and altered invoices, to show fictitious costs, and submitted those invoices to the University and Georgia-Pacific for payment. Tao then received payment for these fraudulent expenses.
According to his plea agreement, between 2010 and 2013, Tao fraudulently obtained $59,411.86 from the University and $2,280.00 from Georgia-Pacific
.Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard Marshall, Special Agent in Charge, FBI, jointly announced the guilty plea.
The investigation was conducted by the FBI, the UK Police Department, and the UK Internal Audit Department. Assistant U.S. Attorney Andrew T. Boone represents the federal government in this case.
Tao is scheduled to be sentenced on June 11, 2015 at 10:30 am. He faces a maximum prison sentence of 20 years and a maximum fine of $250,000. However, any sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Former State Senate Leader Malcolm Smith and Queens GOP Leader Vincent Tabone Found Guilty in White Plains Federal Court of Bribery and Fraud Charges Connected to 2013 NYC Mayor’S RaceRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas P. Zugibe, the Rockland County District Attorney, announced that former New York State Senate leader MALCOLM SMITH was found guilty in federal court of bribing New York City Republican leaders, including Queens County Republican Party Vice Chairman VINCENT TABONE, who was also convicted of receiving bribes, to allow SMITH, a Democrat, to run as a Republican candidate for New York City Mayor in 2013. SMITH was also found guilty of extortion for his role in obtaining New York State funding for a real estate project in Spring Valley, New York, in exchange for cash bribes paid on his behalf to the New York City Republican Party chairmen. In addition, TABONE was convicted of witness tampering when he attempted to persuade former Queens County Republican Party Chairman Philip Ragusa not to testify against him. The two were convicted after a four-week jury trial before U.S. District Judge Kenneth M. Karas.
Manhattan U.S. Attorney Preet Bharara said: “As the jury unanimously found, the give-and-take of the political process should not be the giving and taking of bribes, which is what Malcolm Smith and Vincent Tabone tried to make it. Smith gave, and Tabone took, a $25,000 cash bribe to permit Smith to run for New York City Mayor as a Republican. Smith and Tabone were not alone in this scheme – Smith also bribed Daniel Halloran, another Republican Party official. And sadly, this was just one of many pockets of corruption this Office has uncovered in New York, which has become the ‘show me the money’ state. It should not be asking too much to expect public officials at least to obey the law. This Office will continue the vigorous prosecution of political corruption until every public official understands that violating the public trust will likely land you in prison.”
Rockland County District Attorney Thomas P. Zugibe said: “The facts put forth at this trial and the resulting verdict clearly display how official corruption can potentially impact our system of government and how it can be stopped. I'd like to thank the United States Attorney's Office for taking this case to a successful conclusion and I commend our federal partners and the members of my staff for their efforts. I look forward to future success in rooting out corruption through the continued efforts of the United States Attorney's Office, the Federal Bureau of Investigation, and the Rockland County District Attorney's Office through our Public Corruption Task Force.”
According to the Complaint and the Indictment filed in federal court and the evidence presented at trial:
The Bribery and Extortion Schemes
SMITH was first elected to the New York State Senate in November 2000, and represented a district within Queens, New York. He was Chairman of the Independent Democratic Conference of the State Senate and, among other positions, has served as the State Senate’s minority and majority leader and acting lieutenant governor. From November 2012 through April 2, 2013, SMITH agreed with former New York City councilman Daniel Halloran, who was convicted in a separate trial, and an undercover FBI agent posing as a wealthy real estate developer (the “UC”), and a cooperating witness (“CW”) to bribe New York City Republican Party county leaders, including TABONE, in exchange for their authorization for SMITH to appear as a Republican candidate for New York City Mayor in 2013, even though SMITH is a registered Democrat.
SMITH participated in two overlapping criminal schemes that involved the payment of bribes to obtain official action. First, SMITH authorized the payment of $110,000 in cash bribes to be paid to leaders of the New York City Republican Party, including TABONE, so that they would allow SMITH to run for mayor on the Republican Party’s ballot line. Second, SMITH agreed to use his influence to help steer at least $500,000 in New York State transportation funding to a real estate project the UC and CW had proposed to develop in Spring Valley, New York, in exchange for the UC and CW paying bribes on SMITH’s behalf to the New York City Republican Party Chairs.
In furtherance of the scheme, SMITH authorized the UC and the CW to meet TABONE, the Executive Vice Chairman of the Queens County Republican Party, Joseph Savino, the Chairman of the Bronx County Republican Party, and other party leaders. During a meeting with the UC, TABONE accepted a $25,000 cash bribe in a dimly lit SUV parked in front of a Manhattan restaurant and agreed to accept another $25,000 after his committee authorized SMITH to compete in the Republican primary. Savino similarly accepted a $15,000 cash bribe and agreed to accept another $15,000 after he voted to authorize SMITH to compete for the Republican ballot line. In return for his efforts in negotiating the bribes, Daniel Halloran accepted $15,500 as a down payment on a “broker’s” fee of at least $75,000 and expected to be appointed First Deputy Mayor if Smith was elected mayor.
Witness Tampering
Shortly before the start of a previously scheduled trial, the Government sought permission from the Court to take the deposition of Philip Ragusa, the former Chairman of the Queens County Republican Party. Ragusa, who was gravely ill at the time, was expected to testify favorably to the Government. Over TABONE’s objections, the Court ordered the deposition to take place. An hour before the scheduled start of the deposition, TABONE unexpectedly appeared at Ragusa’s home and attempted to pressure Ragusa not to testify against him.
SMITH, 57, and TABONE, 48, both of Queens, New York, were found guilty of one count of conspiracy, which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of Travel Act bribery, which carries a maximum sentence of five years in prison. SMITH was separately convicted of one count of extortion, which carries a maximum sentence of 20 years in prison, and TABONE was separately convicted of one count of witness tampering, which carries a maximum sentence of 20 years in prison. Each of the counts of conviction also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense.
SMITH and TABONE are scheduled to be sentenced by Judge Karas on July 1, 2015, at 10:00 a.m. and 11:00 a.m., respectively.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation and the Rockland County District Attorney’s Office.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant United States Attorneys Douglas B. Bloom, Justin Anderson and Perry Carbone are in charge of the prosecution.
Former Secretary of Transportation James Kerasiotes Sentenced to Six Months in Jail for Tax EvasionRead the Press Release
BOSTON – James Kerasiotes, 61, former Massachusetts Secretary of Transportation, was sentenced today to six months in prison by U.S. District Court Judge William G. Young for filing false tax returns. Judge Young also ordered Kerasiotes to serve one year of supervised release, four months of which must be served in home confinement, $31,448 in restitution to the IRS and a $5,000 fine. Kerasiotes was ordered to report to the U.S. Marshals on March 20, 2015.
“As a former cabinet-level official in state government whose salary was paid with tax dollars, James Kerasiotes was well versed in the fundamental obligation to honestly report his income,” said U.S. Attorney Carmen M. Ortiz. “Instead he did just the opposite – seeking to cheat the system and undermine the work of good government.”
Kerasiotes pleaded guilty in September 2014. In January 2015, after a four-day evidentiary hearing, the Court held that the government had proven that the tax loss attributable to Kerasiotes’s crimes was more than $30,000.
Kerasiotes admitted that he was a self-employed consultant providing strategy and business origination services to clients in the transportation and construction industries. For the calendar years 2010 and 2011, Kerasiotes filed Forms 1040, U.S. Individual Income Tax Returns, knowing that those forms reflected only a portion of the income Kerasiotes earned from his consulting business during those years. By underreporting his total business income for 2010 and 2011, Kerasiotes evaded the payment of income taxes to the IRS.
United States Attorney Carmen M. Ortiz, William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office, made the announcement today. The case was prosecuted by Kristina E. Barclay of Ortiz’s Public Corruption Unit.
Former Florida Resident Sentenced for Attempted Sex TraffickingRead the Press Release
Orlando, Florida – Chief United States District Judge Anne C. Conway today sentenced Patrick R. Minga (50, formerly of Cape Coral) to four years and nine months in federal prison for to attempting to induce and facilitate, for his own financial gain, the travel of an individual from Brevard County, Florida, to Quito, Ecuador, so that the individual could engage in illicit sexual conduct with minor girls. In addition, following his release from prison, Minga was ordered to serve 20 years of supervision, to have no contact with minors, and must register as a sex offender.
According to court documents, Minga advertised, on Craigslist, a sex tourism business in Ecuador that could facilitate lodging, transportation, meals, and unlimited access to females for a fee. An undercover agent with a U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Task Force observed the ad and contacted Minga. Over the course of several months, Minga tried to induce and arrange the travel of the agent from Florida to Quito, where Minga advised that he could provide sexual encounters with minors as young as 13 and 14 years of age.
On March 2, 2014, Minga traveled from Ecuador to the United States, where he was arrested by agents in Huntsville, Alabama.
“HSI remains committed to stopping criminals from exploiting children globally,” said Susan L. McCormick, special agent in charge of HSI Tampa. “As evidenced by this case, HSI will continue to work with our local and transnational law enforcement partners, like the Brevard County Sheriff’s Office, and utilize every available resource to target child predators who travel internationally with the sole intent to exploit and victimize the innocence of children.”
"This case is another excellent example of interagency cooperation that targets criminals who prey upon the most precious things in our lives, our children,” stated Brevard County Sheriff Wayne Ivey. “If your intent is to harm a child, our intent is to track you down and bring you to justice!"
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Executives Sentenced to Prison for Defrauding Employer of $1 Million Through Fraudulent Expense ClaimsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Paul Dunham, age 59, of Northampton, England, formerly of Montgomery County, Maryland, today to 4 years in prison, followed by three years of supervised release, for conspiring to commit wire fraud and for money laundering, in connection with a scheme in which he and his wife, Sandra Dunham, fraudulently requested reimbursement from their employer for purported business expenses, but were instead for mortgage payments on time shares in Barbados, luxury bedding for their home, a dog sofa and other personal expenses. On January 29, 2015, Judge Grimm sentenced Sandra Dunham, age 58, to two months imprisonment, with a reduction of 42 days for time served, for the wire fraud conspiracy. Judge Grimm specified that the remaining 18 days of Mrs. Dunham’s sentence be served in home detention. Judge Grimm also entered an order requiring the couple to forfeit and pay restitution of $1 million, the total losses incurred as a result of the scheme.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to their guilty pleas, Paul and Sandra Dunham worked for PACE Worldwide which was located at various times in Maryland and North Carolina, and had a subsidiary in the United Kingdom named PACE Europe Ltd. PACE produced parts for the repair and reworking of electronics for the military and others. Paul Dunham held a number of executive positions, including president and chief operating officer. Sandra Dunham was initially hired to work for the European subsidiary in the accounts department, and eventually became the director of sales and marketing for PACE Worldwide. The Dunhams relocated from the United Kingdom to Maryland and then North Carolina, and were provided with corporate credit cards.
Between 2002 and 2009, Paul and Sandra Dunham fraudulently charged personal expenses to their corporate credit cards and submitted vouchers to PACE for reimbursement that falsely described the expenditures as business expenses. For example, Paul Dunham represented that $3,007 had been spent on meals during business meetings, when in fact the money was spent on luxury bedding for his upscale North Carolina residence. Sandra Dunham sought reimbursement for $8,397 which she represented as expenses incurred to cancel a vacation due to a business meeting, when these expenses were actually mortgage payments the couple made on two separate time share units the couple had purchased in Barbados. Other personal expenses which were falsely described as business expenditures included personal legal fees, expensive furniture, a domed pet residence and a dog sofa.
The couple also fraudulently billed PACE Europe Ltd. for business expenses already paid by PACE Worldwide, obtaining duplicate reimbursements.
In addition, a substantial portion of the scheme involved Paul Dunham abusing a private position of trust to manage and direct others, including his secretary, in the execution of the scheme. Moreover, in an attempt to conceal the scheme, Paul Dunham repeatedly forged receipts and invoices to create the false appearance that they were for business, rather than personal expenses.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys David I. Salem and Leah J. Bressack, who prosecuted the case.
Former CEO of Paramount Management Pleads Guilty in Manhattan Federal Court to Commodities FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that ALEX V. EKDESHMAN, the Chief Executive Officer of Paramount Management, LLC, pleaded guilty today to commodities fraud. EKDESHMAN ran a fraudulent scheme in which he solicited over $1.5 million dollars from over 100 investors for the purpose of investing in foreign exchange currency transactions and then misappropriated the majority of investors’ funds to pay for personal and business expenses. EKDESHMAN was originally charged in May 2014, and he pled guilty today in Manhattan federal court before the Honorable Vernon S. Broderick, United States District Judge.
U.S. Attorney Preet Bharara said: “Alex Ekdeshman stole over $1.5 million from over 100 investors. His actions are another example of greed overpowering judgment.”
According to the Information, other documents filed in Manhattan federal court, and statements made during court proceedings:
From at least in or about May 2011 through May 2013, EKDESHMAN ran a fraudulent commodities trading scheme. EKDESHMAN, who was chief executive officer of Paramount Management, LLC (“Paramount Management”), located in New York, New York, represented to investors that Paramount Management was in the business of investing in foreign exchange currency transactions, or “forex.” Through various employees of Paramount Management, EKDESHMAN solicited investor funds on the understanding that the funds would be solely invested in forex. As a result of these solicitations, EKDESHMAN and his employees collected at least $1.58 million from approximately 115 investors.
Contrary to EKDESHMAN’s promise to invest the investors’ funds in forex, EKDESHMAN misappropriated the large majority of investor funds. More than $1 million in investor funds were never traded in forex. Instead, EKDESHMAN used those funds to make payments to himself and his family members, to buy personal items, to pay for business expenses related to Paramount Management, and to pay employees of Paramount Management.
EKDESHMAN, 38, of Holmdel, New Jersey, pleaded guilty to one count of commodities fraud. This charge carries a maximum sentence of 10 years in prison and a maximum fine of $1 million, or twice the gross gain or loss from the offense. The statutory maximum sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Commodity Futures Trading Commission for its assistance. He added that the investigation is continuing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jessica A. Masella is in charge of the prosecution.
Egyptian National Convicted of Resisting Deportation OrdersRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced today that a federal jury found an Egyptian national guilty of refusing to leave the country twice after being ordered to depart.
Mohamed Admed Hassan Abdallah Omran, 38, of Egypt, was found guilty of two counts of failure to depart for resisting removal after final deportation orders. United States District Judge Dee D. Drell presided over the trial. The defendant’s trial started Wednesday and ended today with the jury returning the guilty verdict after deliberating for 10 minutes. Evidence admitted at trial revealed that on two occasions U.S. Immigration Enforcement Agents attempted to remove Omran from the country via the Alexandria International Airport by putting him on a commercial flight. The defendant hampered agents’ ability to remove him by verbally and physically resisting agents on June 12, 2013. The defendant also hampered attempts to put him on a commercial flight at the airport on July 24, 2013. This prevented him from boarding the flights because of airline and Transportation Security Administration safety policies.
Omran faces four years in prison, three years of supervised release, and a $250,000 fine for each count. Sentencing has been set for May 11, 2015.
The Immigration and Customs Enforcement - Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys Michael O’Mara and Cytheria D. Jernigan are prosecuting the case.Edwin Monsanto Sentenced to 33 Months in Prison for Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Edwin Monsanto, 54, of St. Thomas, to 33 months in prison and five years of supervised release for conspiracy to possess with intent to distribute cocaine, United States Attorney Ronald W. Sharpe announced.
On January 29, 2014, Monsanto pleaded guilty to conspiracy to possess with intent to distribute 20 kilograms of cocaine. Monsanto was arrested as part of the investigation of Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement. On November 7, 2013, Monsanto was charged in a 69-count third superseding indictment, along with Tapia, Angelo Hill, Walter Hill, Jr., Stephen Torres, Eddie Lopez-Lopez, Raymond Brown, Hector Alcenio, and Angel L. Negron-Beltran.
As part of his sentence, Monsanto also was ordered to pay a $100 special assessment, perform 150 hours of community service, and forfeit all proceeds of his crime.
The case was investigated by the Public Corruption Task Force, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Office of the Virgin Islands Inspector General. It was prosecuted by former Assistant U.S. Attorneys Kim R. Lindquist and Kelly B. Lake, and Assistant U.S. Attorney Kim L. Chisholm.
East Texans Arrested on Federal ViolationsRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - U.S. Attorney John M. Bales announced today that 18 individuals have been arrested following a lengthy investigation into drug trafficking in the Eastern District of Texas.
On Feb. 5, 2015, a combined task force of federal, state and local law enforcement executed federal arrest warrants in Gregg and Upshur counties as a result of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Drug Administration, Gregg County CODE Unit, Longview Police Department, and Gregg County Sheriff’s Office.
The operation resulted in the arrest of 18 of 20 defendants named in a 37-count indictment returned by a federal grand jury on Jan 21, 2015. According to the indictment, from at least January 2010 to the present, the defendants conspired to distribute methamphetamine in East Texas. The indictment also includes 14 charges of possession of a firearm during a drug trafficking crime, 20 charges of felon in possession of a firearm and two charges of possession of an unregistered firearm. Those arrested and named in the indictment are:
MICHAEL DAIN BONNER, 38-years-old, DAVID FRANKLIN BECK, JR., 48-years-old, MICHAEL DEWAYNE JONES, aka “Sleepy”, 27-years-old, STEPHEN DWAYNE CANNADA, aka “Little Wood”, 40-years-old, CYNTHIA BETH BRANTLEY, 56-years-old, DEVON VERNON HARRIS, aka “Cali”, 37-years-old, BRODERICK LAMAIL JONES, aka “BA”, 30-years-old, KATLIN QUATEZ GODFREY, aka “Slim/KG”, 28-years-old, TROY OWEN, JR., 34-years-old, MARK CYRUS HIPP, 35-years-old, CHRISTOPHER EVERETT BROOK, aka “Blue,” 40-years-old, KEITH DEONDRAY YOUNG, aka “Tugg,” 34-years-old, LARRY GENE KEEN, aka “Junior,” 37-years-old, CARLA THOMAS HAWKINS, aka “Breeze,” 44-years-old, COURTNEY BREANNE MCMULLEN, 25-years-old, CHASE ANTHONY HAGLER, 31-years-old, JESSICA MILLESON. 25-years-old, and
HEATHER REBECCA BECK, 45-years-old.All of the defendants are residents of the Gregg/Upshur County area. If convicted, the defendants face as much as life in federal prison.
This case is being investigated by ATF, DEA, Gregg County CODE Unit, Longview Police Department, and Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Richard Moore.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dominican Man Sentenced in Federal Court for Heroin Distribution in HazletonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Santiago Guerrero-Nova, age 31, formerly of Hazleton, Pennsylvania, was sentenced to 17 months, the length of time he has been in prison since his arrest for distributing heroin in Hazleton, Pennsylvania on August 28, 2013. Guerrero-Nova, who was not legally in the United States at the time of the offense, now faces deportation proceedings to the Dominican Republic, his native country.
According to United States Attorney Peter Smith, Guerrero-Novo previously pleaded guilty to a criminal information charging him with heroin distribution. The charges were the result of an investigation conducted by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney John Gurganus prosecuted the case.
Detroit man sentenced on heroin chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Stacy Erwin Jones, 35, of Detroit, was sentenced to 30 months in federal prison for aiding and abetting the distribution of heroin.
On March 20, 2014, Jones, also known as “Red,” sold heroin to a confidential informant at a store in the Charleston Town Center Mall. Officers executed a search warrant at Jones’ residence, where they seized around 10 grams of heroin. Jones had more than $3,000 on his person when he was arrested following the warrant execution.
Jones previously served 13 years in prison for a 1999 assault with intent to murder conviction in Detroit.
United States District Judge Thomas E. Johnston imposed the sentence.
The case was investigated by the Metropolitan Drug Enforcement Networking Team. Assistant United States Attorney Joshua C. Hanks was in charge of the prosecution.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of opiate painkillers and heroin in communications across the Southern District.
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Detroit man pleads guilty to heroin chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Steven Adams, 47, of Detroit, pleaded guilty to possession of heroin with the intent to distribute.
Adams admitted that on June 16, 2014, he travelled by Greyhound bus from Detroit to Charleston with heroin intended for delivery to another person. He said he was approached by an individual in Detroit, who offered him money to carry the drugs to someone else in West Virginia. Adams was arrested at the bus station, following an encounter with agents of the Metropolitan Drug Enforcement Network Team (MDENT).
Adams faces up to 20 years in federal prison, and a $1 million fine. He is scheduled to be sentenced May 11, 2015.
United States District Judge Thomas E. Johnston presided over the plea hearing.
The case is being investigated by MDENT. Assistant United States Attorney John Frail is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets and curtailing the spread of heroin and opiate painkillers in communities across the Southern District.
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Detroit man pleads guilty to drug trafficking chargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Terrance Wilson, 25, of Detroit, pleaded guilty to interstate travel in aid of drug trafficking.
Wilson admitted that he transported heroin from Detroit to Charleston multiple times in November and December 2014, with the intent to carry out an ongoing business enterprise involving the distribution of the drugs in the Charleston area for profit.
On four occasions between Dec. 1-4, 2014, Wilson provided heroin to a confidential informant working with the Metropolitan Drug Enforcement Network Team.
Wilson faces up to five years in federal prison, three years of supervised release and a $250,000 fine. He is scheduled to be sentenced May 13, 2015.
United States District Judge John T. Copenhaver, Jr. presided over the plea hearing.
The case is being investigated by MDENT. Assistant United States Attorney Steven I. Loew is in charge of the prosecution.
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Defendant Sentenced to 10 Years in Federal Prison on Methamphetamine Distribution ConvictionRead the Press Release
AMARILLO, Texas — Hugo Gomez-Barrientos, most recently of Hereford, Texas, was sentenced this week by U.S. District Judge Mary Lou Robinson to 120 months in federal prison on a methamphetamine distribution conviction, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Gomez-Barrientos, 46, pleaded guilty in November 2014 to an indictment charging one count of possession with intent to distribute 50 grams or more of methamphetamine. He has been in custody since his arrest at his residence on September 25, 2014, after the return of that indictment.
According to documents filed in the case, on May 7, 2013, Gomez-Barrientos agreed to meet with an undercover Drug Enforcement Administration (DEA) Task Force Officer (TFO), at a convenience store in Hereford, and sell him a quarter pound of methamphetamine for $3,750 and front him an additional quarter pound to be paid for later. Gomez-Barrientos changed the meeting place from the convenience store to a cattle truck wash.
After the undercover TFO arrived at the cattle truck wash, Gomez-Barrientos walked up to his vehicle and the sale took place. The undercover TFO advised he would pay him the balance owed for the additional quarter pound of methamphetamine on the next buy.
Approximately one month later, on June 5, 2013, the undercover TFO called Gomez-Barrientos to discuss the remaining balance he owned. They agreed to meet at Gomez-Barrientos’s ranch. The undercover TFO advised that the prior amount of methamphetamine was short of the quarter pound and the undercover TFO and Gomez-Barrientos agreed that the undercover TFO would pay $3,000 for it.
The DEA, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety (DPS) investigated. Assistant U.S. Attorney Joshua Frausto prosecuted.
Co-Conspriators Sentenced for Bank FraudRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flannagan sentenced JOSEPH GRECCO, 52,of DuBois, Pennsylvania, to 30 months in prison and 3 years of supervised release for Conspiracy to Commit Bank Fraud. GRECCO previously pled guilty to this charge on March 12, 2014. On August 8, 2014, Judge Flannagan sentenced GRECCO’S co-defendant, EDWARD A. YATES, 50, of Wilmington, North Carolina, to 12 months and 1 day in prison and 3 years of supervised release for Conspiracy to Commit Bank Fraud. On January 8, 2015, another co-defendant RONALD DOERRER, 67 of Kure Beach, North Carolina was sentenced to 18 months imprisonment followed by 3 years of supervised release for the same charge, Conspiracy to Commit Bank Fraud. A fourth co-defendant, and the leader of this conspiracy to commit bank fraud, RONALD HAYDEN KOTLER, remains at large.
“Fraud in any form harms every consumer, and identity theft in particular is a devastating crime for the victim”, said Thomas J. Holloman, III, Special Agent in Charge IRS Criminal Investigation. “With these sentencings, these defendants are now forced to bear the consequences of their criminal activity. I would encourage the public to take the appropriate measures to safeguard their personal information, so as not to fall victim to identity theft.”
These criminal charges grew out of the activities of KOTLER, DOERRER, GRECCO, and YATES in connection with a company in Wilmington known as Commercial Loan Solutions (CLS), which operated from 2006 until 2009. CLS, which was run by KOTLER and DOERRER, offered its services as a broker who could provide bank financing for individuals and companies, in exchange for hefty fees, ranging from 15% to 25% of the loan amount.
The way in which KOTLER and DOERRER were able to procure financing for individuals and businesses was by helping their clients, including GRECCO, YATES, and other unindicted conspirators, to falsify loan application by submitting false tax returns, and vastly inflating these individuals’ business income and assets.
GRECCO received in excess of $360,000.00 in financing based upon falsified loan applications that CLS helped him prepare and submit, while YATES received approximately $350,000.00 in financing based upon falsified loan applications that CLS helped him prepare and submit.
The co-conspirators defrauded various financial institutions, including, but not limited to, Bank of America, Chase, CitiBank, National City Bank, PNC Bank, and Tri Counties Bank. The scheme involved obtaining money, funds, credits, and other things of value from these financial institutions by providing them with materially false information and making fraudulent representations and promises. These financial institutions suffered losses in excess of $4,500,000.00 as a result of KOTLER’S scheme to defraud.
Any person having knowledge of KOTLER’S whereabouts is encouraged to contact the Internal Revenue Service Criminal Investigations office in Wilmington, or United States Secret Service office in Wilmington, North Carolina.
The investigation of this case was conducted by the Internal Revenue Service Criminal Investigation and the United States Secret Service. The prosecution of the case was handled by Assistant United States Attorney Evan Rikhye.
Cincinnati Man Sentenced for Possessing Firearm as A FelonRead the Press Release
CINCINNATI – Kenneth Johnson, 32, of Cincinnati, was sentenced in U.S. District Court to 84 months in prison for possessing a firearm as a felon.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Sharonville Police Chief Aaron Blasky and Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Field Division, announced the sentence handed down yesterday by U.S. District Judge Susan J. Dlott.
According to court documents, on or about May 25, 2014, Johnson, a previously convicted felon, possessed a pistol and seven rounds of ammunition. On that date, officers on foot patrol observed marijuana on the floorboard in the defendant’s vehicle and the smell of fresh marijuana on his person. When officers asked the defendant to move so they could search his vehicle, he drove away.
During the pursuit, Johnson slowed his vehicle while driving over a bridge. After being stopped at a hotel across the street, officers called in the K9 unit to search the bridge area. The search resulted in the recovery of a firearm.
Johnson pleaded guilty on September 30, 2014 to one count of felon in possession of a firearm. As part of his plea agreement, the defendant agreed to forfeit all firearms and ammunition within his possession.
U.S. Attorney Stewart commended the cooperative investigation by the Sharonville Police Department and ATF, as well as Cincinnati Branch Chief Anthony Springer, who prosecuted the case.
Cincinnati Man Sentenced for Dealing Firearms Without A LicenseRead the Press Release
CINCINNATI – Vernon Warner II, 29, of Cincinnati, was sentenced in U.S. District Court to 54 months in prison for dealing in firearms without a license.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Cincinnati Police Chief Jeffrey Blackwell and Donald J. Soranno, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Columbus Field Division, announced the sentence handed down yesterday by U.S. District Judge Susan J. Dlott.
According to court documents, beginning on or about January 9, 2014 until April 2014, Warner engaged in the business of dealing six firearms without being a licensed dealer. The weapons included a rifle, handguns, a revolver and two semi-automatic pistols.
Warner pleaded guilty on October 29, 2014 to one count of dealing in firearms without a license. As part of his plea agreement, the defendant agreed to forfeit all firearms and ammunition within his possession.
U.S. Attorney Stewart commended the cooperative investigation by the Cincinnati Police Department and ATF, as well as Cincinnati Branch Chief Anthony Springer, who prosecuted the case.
Cedar Rapids Man Pleads Guilty to Possession of A FirearmRead the Press Release
Contact: Steve Young
A man who was carrying a stolen firearm in a car pled guilty today in federal court in Cedar Rapids.
Michael Hicks, age 25, from Cedar Rapids, Iowa, was convicted of one count of being an unlawful drug user in possession of a firearm.
At the plea hearing, Hicks admitted that in January 2010, at a time when he was an unlawful user of marijuana, he possessed a stolen handgun. Hicks was a passenger in a car pulled over by police officers during a traffic stop in Benton County, Iowa. During the traffic stop the sheriff’s deputy discovered a handgun in defendant’s possession.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Hicks remains free on bond pending sentencing. Hicks faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the FBI, the Benton County Sheriff’s Office, and the Cedar Rapids Police Department. The investigation and prosecution is part of the ongoing operation of the FBI Safe Streets Task Force based in Cedar Rapids, Iowa.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 15-cr-8-LRR.
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Canton Man Indicted on Charges Relating to Drug MisbrandingRead the Press Release
United States Attorney Brendan V. Johnson announced that a Canton, South Dakota, man has been indicted by a federal grand jury for Causing Introduction of Misbranded Drug into Interstate Commerce with Intent to Defraud, and Receipt and Offered Delivery of a Misbranded Drug.
Stanley Dean Brower, age 68, was indicted on February 3, 2015. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 4, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 3 years in custody and/or a $10,000 fine, 1 year of supervised release, and $100 to the Federal Crime Victims Fund on each count.
The charges are merely accusations and Brower is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Food and Drug Administration – Office of Criminal Investigations. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Brower was released on bond pending trial. A trial date has not been set.
California Woman Sentenced for Port Arthur Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 57-year-old Rialto, CA woman living in Port Arthur, Texas has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Angie Dang pleaded guilty on Oct. 2, 2014 to possession with intent to distribute crack cocaine and was sentenced to 24 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, in March 2014, Dang was observed by law enforcement conducting a drug transaction in the parking lot of the apartment complex where she lived in Port Arthur, Texas. Shortly afterwards, Dang left her apartment and was pulled over by law enforcement and a canine partner was employed to examine the outside of the vehicle. The canine alerted to the presence of drugs and a search revealed a rock of crack cocaine in the center console of the vehicle. Additionally, Dang had $2,550 in her pants pocket. She was transported to the police department where a more thorough search was conducted. More crack cocaine was found in the vehicle, along with $453 cash. A total of 14.290 grams of crack cocaine was found in the vehicle. A state search warrant was obtained and officers searched the apartment where Dang lived. A cookie of crack cocaine, which weighed 22.585 grams, was found in the dining room. Twenty-five, one-ounce bags of powder cocaine weighing 663.925 grams was found hidden in various places in Dang's closet. Officers also found $97,700 cash. A federal grand jury returned an indictment on May 14, 2014, charging Dang with drug trafficking violations.
This case was investigated by the U.S. Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Robert L. Rawls.California Man who Fraudulently Obtained and Sold Computers Destined for Schools and Non-Profits Sentenced to 10 Years in PrisonRead the Press Release
A Palmdale, California resident who defrauded a federal government program designed to provide computers to needy schools and non-profits was sentenced today in U.S. District Court in Seattle to 10 years in prison for wire fraud, aggravated identity theft, and filing a false income tax return, announced Acting United States Attorney Annette L. Hayes. STEVEN ALEXANDER BOLDEN, 51, pleaded guilty in January 2014. His sentencing was delayed while criminal charges in California were resolved. At today’s sentencing hearing U.S. District Judge Ricardo S. Martinez ordered BOLDEN to pay $7.2 million in restitution. Judge Martinez said, “You’ve been a con man for a long, long time. . . You committed a very serious crime . . . Stealing from children . . . Children all across America.”
“Thousands of kids would have benefitted from the equipment this defendant stole,” said Acting United States Attorney Annette L. Hayes. ”The Computers for Learning program’s goal has always been to put computer technology in more classrooms, so that more kids have the opportunity to be educated to their full potential. Stealing education opportunities from needy kids makes this fraud particularly egregious.”
According to court records, between 2007 and 2013, BOLDEN defrauded a Government Services Administration (GSA) program called “Computers for Learning,” that transfers excess government computers and related peripheral equipment directly to qualified schools and educational non-profit organizations. BOLDEN posed as 14 different non-profits to obtain the computers for free, and then sold them for his personal profit. Over the course of the scheme, BOLDEN obtained 19,442 items through the program with an original purchase price of $30.3 million. Based on its “fair market value,” the computer equipment that BOLDEN fraudulently acquired was worth about $7.2 million.
According to records in the case, BOLDEN became acquainted with a person operating a legitimate non-profit in Southern California. BOLDEN convinced the head of the non-profit to let him review the paperwork for the organization. Using the non-profit organization’s information, BOLDEN created an account in the Computers for Learning program, and in July of 2010, obtained 41 Dell and HP computers that were made available by the Border Patrol at Blaine, Washington. BOLDEN claimed the computers and later sold them for his own benefit. BOLDEN was convicted of aggravated identity theft because he used the identities of the non-profit organization and his acquaintance to further his scheme.
BOLDEN failed to report any income from the sale of the computers. In fact, records from a computer recycler in Santa Ana, California show it paid BOLDEN more than $64,892 in 2012. BOLDEN failed to report any of that income on his tax return.
BOLDEN was sentenced in California in September 2014, to a seven year prison sentence for a domestic violence crime which occurred in October 2013.
The case was investigated by multiple law enforcement partners led by the General Services Administration Office of Inspector General (GSA-OIG), the Internal Revenue Service Criminal Investigation (IRS-CI), the Department of Transportation Office of Inspector General (DOT-OIG), the Department of Justice Office of Inspector General (DOJ-OIG), the Department of Energy Office of Inspector General (DOE-OIG), the Department of Veterans Affairs Office of Inspector General (VA-OIG), the Social Security Administration Office of Inspector General (SSA-OIG), the Department of Homeland Security Office of Inspector General (DHS-OIG), the Army Criminal Investigation Division (CID) and the FBI.
The case was prosecuted by Assistant United States Attorney David Reese Jennings.
Broward County Resident who Falsely Represented she was a Licensed Medical Professional Was Sentenced to 17 Years Imprisonment for Medicare FraudRead the Press Release
A Pembroke Pines resident who falsely represented that she was a Medical Doctor and owned and operated Vortex Medical Center & Management Services, Inc. (“Vortex”), located in Miami, Florida, was sentenced today to 17 years for defrauding Medicare. Her co-defendant was sentenced to 8 years imprisonment for his role in the scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Derrick Jackson, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
According to the indictment and statements made at the sentencing hearing, Alejandra Collazo, 43, of Pembroke Pines, Florida, and Ricardo Corria, 49, of Miami, Florida, defrauded the Medicare program through Vortex. At Vortex, Collazo used the stolen identities of physicians to forge prescriptions that prescribed home health services. Collazo and Corria later sold these forged prescriptions to patient recruiters for $100 each. Home health agencies located in Miami-Dade County then submitted these forged prescriptions to Medicare, which represented millions of dollars in false and fraudulent claims.
During the course of this conspiracy Collazo represented that she was a State of Florida Licensed Nurse Practitioner. In previous corporate filings Collazo had represented to the State of Florida that she was a Medical Doctor. Collazo has never been a licensed medical professional in the State of Florida or any other jurisdiction. Collazo has a number of criminal convictions and has been sentenced to state prison on multiple occasions. Corria was previously convicted of cocaine trafficking and served time in federal prison.
The court also ordered each of Collazo and Corria to pay restitution to the Medicare program in the amount of $8,459,664. On December 5, 2014, Collazo pled guilty to conspiracy to commit health care fraud and wire fraud, as well as one count of aggravated identity theft. On the same date, Corria pled guilty to conspiracy to defraud the United States and receive health care kickbacks, and one substantive count of receipt of health care kickbacks.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case was prosecuted by Assistant U.S. Attorney Kevin J. Larsen.
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.
Broward County Resident Sentenced Today for Selling Counterfeit XanaxRead the Press Release
A Parkland man was sentenced to 32 months imprisonment for conspiring to traffic in counterfeit Xanax and illegally distributing steroids.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, David W. Bourne, Special Agent in Charge, Food and Drug Administration, Office of Criminal Investigations, Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, made the announcement.
According to court documents and statements made by the parties at the sentencing hearing, Frank Fiore, 60, sold counterfeit Xanax and Viagra to undercover officers, as well as, to a cooperating source. Fiore also sold them steroids and offered to sell them counterfeit U.S. currency. In addition, Fiore tried to help his co-defendant Anthony Carbone, 31, of Deerfield Beach, Florida, buy a kilogram of cocaine. During the course of the drug dealings, Fiore also asked an undercover officer to kill two of Fiore’s associates and to beat up Fiore’s brother-in-law.
Carbone was previously convicted of conspiracy to traffic in a counterfeit drug and distribution of controlled substances and was sentenced to 24 months imprisonment. Co-defendant Gary Lee Jones, 55, of Boca Raton, Florida, was convicted of conspiracy to traffic in a counterfeit drug and possession of a firearm after conviction for a felony and also sentenced to 24 months imprisonment.
Mr. Ferrer commended the investigative efforts of the Food and Drug Administration, Office of Criminal Investigations, and the Palm Beach County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Marc Osborne.
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.
British Man Found Guilty in O’Fallon High School Heroin Overdose DeathRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Richard J. Klemis, 41, a native and citizen of Great Britain, was found guilty on Wednesday, February 4, 2015, of selling the heroin which killed Tyler P. McKinney, 19, an O’Fallon, Illinois High School student, on February 23, 2011.
United States Attorney Wigginton stated, “This successful prosecution is yet another step in our anti-heroin initiative. Our anti-heroin effort is designed to slow down and reverse the epidemic of heroin overdose deaths among young people in the Southern District of Illinois. The penalties for drug dealers who choose to prey on young heroin users are very severe, and rightly so. Richard Klemis is a middle-aged man who preyed on O’Fallon teenagers and eventually killed one of them. I am proud to have played a role in removing Klemis from society.”
Klemis is a British citizen who resided in O’Fallon in 2010-2011. Klemis sold heroin to several dozen current and former O’Fallon Township High School students during 2010-11, while he was residing with his mother in O’Fallon. Klemis fled the United States when he learned that he was a suspect in McKinney’s death. Eventually, Klemis was extradited from Great Britain.
Klemis will be sentenced in U.S. District Court in East St. Louis on May 8, 2015. Klemis faces a mandatory minimum sentence of at least 20 years in federal prison, with a potential maximum sentence of life imprisonment. In addition to McKinney’s death, Klemis was found guilty of selling the heroin which nearly killed a second man; of selling heroin to four young people under the age of 21, and of employing a 16-year old man to assist Klemis with his heroin distribution operation. Klemis was convicted of conspiracy to distribute heroin as well.
Klemis was convicted following an 8-day jury trial before United States District Court Judge David R. Herndon.
The investigation which resulted in Klemis’ arrest and conviction was conducted by the O’Fallon, Illinois, Police Department, the Millstadt, Illinois, Police Department, and by the Drug Enforcement Administration (DEA).
The case was tried by Assistant United States Attorney Robert L. Garrison and Special Assistant United States Attorney Jonathan S. Drucker.
Belleville ‘Sovereign Citizen’ Sentenced to Prison for Making False Income Tax Claims and for Failure to Appear for SentencingRead the Press Release
Follow @SDILNewsDestry Marcotte, 48, of Belleville, Illinois, was sentenced to a total of seventy-eight months in federal prison, a fine of $25,000, and three years of supervised release, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
“Being dissatisfied with the government does not give a person the right to try to steal from it or to try to disrupt its functions. The sad fact is that if Marcotte had tried half as hard to be an agent of productive change as he did to be an enemy of the system, he might well be a free and prosperous man rather than another prisoner number.” noted United States Attorney Wigginton.
Marcotte had been convicted in 2013, following a jury trial, of making false claims against the United States by submitting false claims for tax refunds. Marcotte filed tax returns, as part of the sovereign citizen movement, claiming that the I.R.S. owed him more than $600,000. The Court determined the intended loss of his conduct to the United States government was nearly a million dollars. He was released on bond with electronic monitoring, but then fled prior to sentencing. Evidence showed that he filed numerous obstructive pleadings with the Internal Revenue Service, the Federal District Court and the Clerk of St. Clair County. His filings included a local lawsuit attempting to sue the President of the United States. Marcotte's extensive obstructive pleadings were noted to be calculated to be extremely wasteful of precious governmental resources as well as being a "monumental pain in the neck." His obstructive pleadings included false lien releases. He attempted to release a federal tax lien by falsely stating he was a government official. A Special Agent with Internal Revenue Service/Criminal Investigations testified at sentencing of a false lien release on a Ford F-350 truck which caused a financial institution to write off of the principle amount of over $25,000. The fraudulently obtained truck was then used to acquire another truck without cost. The Court noted that even illegally obtained funds must be reported as income.
The investigation was conducted by the United States Marshals Service and the Criminal Investigations Division of the Internal Revenue Service. The prosecution of the case was handled by Assistant United States Attorney Norman Smith.
Baltimore Man Admits to Four Armed Robberies Committed in Less Than A MonthRead the Press Release
Baltimore, Maryland – Derek Roberts, age 45, of Baltimore, Maryland, pleaded guilty today to conspiring to commit three armed robberies and using and brandishing a firearm during a crime of violence. In total, Roberts admitted to acting as the gunman in four armed robberies.
The guilty plea 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; and Baltimore County State’s Attorney Scott Shellenberger.
According to Roberts’ plea agreement, from September 2013 through October 11, 2013, Roberts conspired with Rodney Smith to commit armed robberies at a fast food restaurant, a drug store and a gas station. Roberts also admitted robbing another store with co-conspirator Richard Bruzdzinski.
According to their plea agreements, on the morning of September 15, 2013, Roberts and Smith went to a fast food restaurant in Rosedale, Maryland, and waited for an employee to arrive. When the employee arrived to open the store Roberts and Smith approached him. Roberts pointed a loaded gun at the employee and pushed him into the store. Roberts tied up the victim and demanded money from the cash register. Roberts and Smith stole approximately $200 from the restaurant. On September 27, 2013, Roberts and Smith robbed a drug store in Havre de Grace. When two employees began closing the store, Roberts pointed a loaded gun at the employees and forced them into the store, where he and Smith tied up the victims and demanded money. One of the victims opened the store safe and Roberts took money from the safe. Roberts and Smith stole $3,400 from the store, several cartons of cigarettes and a purse belonging to one of the victims. On October 3, 2013, Roberts and Smith drove from Maryland to a gas station in Fredericksburg, Virginia. An employee let Roberts and Smith into the store and Roberts pointed a loaded gun at the victim. Roberts instructed the victim to go to a back room and lay on the ground, and demanded money. Roberts and Smith stole approximately $200, cartons of cigarettes and beer from the gas station.
In addition to the robberies with Smith, on October 2, 2013, Roberts robbed a store in Timonium, Maryland, with Richard Bruzdzinski. The owner of the establishment recognized Brudzinski, who had been a customer of the store a few weeks earlier. The owner opened the electronic door for Roberts and Bruzdzinski. Immediately, Roberts drew a handgun, pointed it at the owner, and stated that a robbery was occurring. Bruzdzinski drew a stun gun from his pocket. The two men directed the owner and an employee to go to the office in the back of the store, then ordered the victims to the ground. Roberts and Bruzdinski tied the hands of the victims with plastic zip ties. Roberts and Bruzdzinski stole money, gold jewelry, coins, the owner’s Glock pistol, and the victims’ cell phones.
Roberts and the government have agreed that if the Court accepts the plea, Roberts will be sentenced to 228 months in prison. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for May 14, 2015 at 1:00 p.m. Roberts remains detained.
Rodney Smith, age 51, and Richard Bruzdzinski, age 43, both of Baltimore, pleaded guilty to their roles in the robberies. Smith is scheduled to be sentenced on April 23, 2015 at 9:30 a.m. and Bruzdzinski is scheduled to be sentenced on March 26, 2015 at 1:00 p.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation and thanked Cecil County State’s Attorney Ellis Rollins, Baltimore City State’s Attorney Marilyn J. Mosby, and their offices for their assistance in the prosecution. Mr. Rosenstein thanked Assistant United States Attorney Scott A. Lemmon and Bonnie S. Greenberg, who prosecuted the case.
Baltimore Heroin Dealer Marlow Bates, Jr. Sentenced to 10 Years in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Marlow Bates, Jr., age 33, of Baltimore, today to 10 years in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Bates was one of fourteen defendants indicted for conspiracy on September 24, 2013.
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; Commissioner Anthony W. Batts of the Baltimore Police Department; and Chief James W. Johnson of the Baltimore County Police Department.
“Marlow Bates, Jr., did not get the message after he was convicted in 2009,” said U.S. Attorney Rod J. Rosenstein. “Now he will spend the next decade in federal prison.”
According to Bates’ plea agreement, Bates was intercepted over court-authorized wiretaps and other recordings arranging heroin transactions. In one of the recordings, Bates provided the co-conspirator with $7,000 for payment for heroin; in another, Bates stated that he distributed 50 grams of heroin a day. Bates was responsible for distributing between one and three kilograms of heroin. Bates participated in the conspiracy while he was being supervised by a probation officer following his release from prison for a previous federal drug conviction.
In 2009, Bates was one of 24 defendants, including four correctional employees, indicted on federal charges for participating in the Black Guerilla Family gang. He pleaded guilty, admitting that he had conspired to distribute heroin and smuggle controlled substances into Maryland prisons, and was sentenced to serve 46 months in federal prison. Bates was released from federal custody on September 20, 2012. On August 10, 2013, Bates was caught once again dealing heroin.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore Police Department and Baltimore County Police Department for their work in the investigation and thanked Assistant U.S. Attorneys Christopher J. Romano and Seema Mittal, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Atlanta Man Sentenced in Fraud Conspiracy for Submitting Fraudulent Car Loan ApplicationsRead the Press Release
ATLANTA - Nicholas L. Thomas has been sentenced to serve three years and ten months for conspiring to commit bank fraud by submitting fraudulent loan applications to a local car dealer.
“Thomas’s scheme represents a classic fraud conspiracy where false paperwork for car loans enabled him to steal the bank’s money and walk away with the cars,” said Acting United States Attorney John Horn.
“The United States Secret Service will continue to collaborate with our law enforcement partners to investigate and arrest those who commit bank fraud. Today’s sentencing shows that those who ignore the law for their personal gain will face the consequences in court,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to Acting United States Attorney Horn, the charges and other information presented in court: In September 2013, Thomas and unindicted coconspirator C.W. met with a salesman at a Ford dealership in Sandy Springs, Georgia, and agreed to purchase three 2013 Ford Fusions in the name of a Georgia company whose identity they had stolen. During the negotiations, Thomas and C.W. fraudulently represented that Thomas owned the company and was authorized by the company to purchase the vehicles. Thomas and C.W. provided false information and fraudulent documents to the dealership and submitted false credit applications to a federally insured bank in order to obtain financing for the vehicles.
In reliance upon the false information and documents provided by Thomas and C.W., the bank made three loans totaling approximately $75,000, and the dealership delivered the vehicles to Thomas. The evidence showed that Thomas and C.W. had engaged in similar conduct prior to this, and that the total loss to various banks as a result of the conspiracy exceeded $400,000.
Thomas, 31, of Atlanta, Ga., has been sentenced to three years, ten months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $400,518.19. Thomas was convicted on these charges on October 10, 2014, after he pleaded guilty.
This case was investigated by the United States Secret Service.
Assistant United States Attorney J. Russell Phillips prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Allentown Man Charged with Threatening the President of the United StatesRead the Press Release
PHILADELPHIA - Glen Joseph, 45, of Allentown, Pennsylvania, was charged today by Superseding Indictment with making threats against the President of the United States, threats against law enforcement officers, and the interstate communication of threats, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 55 years in prison, three years’ supervised release, a $2.25 million fine, and a $900 special assessment.
The case was investigated by the Federal Bureau of Investigation and the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney V. Paige Pratter.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Allentown Man Charged with Making Threats Against the President of the United StatesRead the Press Release
Defendant Glen Joseph, 45, of Allentown, Pennsylvania, was charged today by Superseding Indictment with making threats against the President of the United States, threats against law enforcement officers, and the interstate communication of threats, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 55 years in prison, three years’ supervised release, a $2,250,000 fine, and a $900 special assessment.
The case was investigated by the Federal Bureau of Investigation and the U.S. Secret Service, and is being prosecuted by Assistant United States Attorney V. Paige Pratter.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Air Force Staff Sergeant to Ten Years for Attempted Enticement of a Minor for SexRead the Press Release
Tampa, FL – U.S. District Judge Mary Scriven today sentenced Air Force Staff Sergeant Timothy Ray Oliver, II (36, Tampa) to 10 years in federal prison, to be followed by 10 years of supervised release, for attempting to entice a minor to engage in sex acts. The Court also ordered him to forfeit the computers and phone he had used while committing the offense. Oliver pleaded guilty on June 12, 2014.
According to court documents, on October 20, 2013, Oliver posted an advertisement on a public website soliciting members of the public for sex and advising that he was interested in “any age, size, or race.” An undercover law enforcement officer, posing as a 15-year-old “child” responded to Oliver’s ad. Oliver and the “child” subsequently communicated via email and Oliver told the “child” that he wanted to engage in sexual intercourse. Oliver repeatedly attempted to elicit personal information from the “child,” including naked photos. In addition, Oliver sent images of sex toys, graphically describing sexual acts that he wished to perform on the “child,” and repeatedly made plans for a meeting.
On November 5, 2013, Oliver arrived at an agreed upon location in the Ballast Point area of Tampa to meet the “child” and was arrested.
This case was investigated by the U.S. Air Force Office of Special Investigations. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
10th Street Associate Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5836
FAX: (716) 551-3051
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Chazity Fluellen, 27, of Buffalo, N.Y., who was convicted of maintaining a drug involved premises, was sentenced to time served and two years supervised release by U.S. District Judge Richard J. Arcara. The judge also ordered the defendant to forfeit the residence at 23 10th Street in Buffalo and a Ford Explorer.Assistant U.S. Attorney Joseph M. Tripi, who handled the case, stated that the defendant and co-defendant, 10th Street Gang member Desmond Ford, used and maintained the premises at 23 10th Street in Buffalo for the purpose of storing and distributing cocaine and crack cocaine. During a search of the property on June 18, 2010, officers recovered quantities of cocaine and crack cocaine, packaging material, a scale, and cellular phones.
Fluellen is one of 44 members or associates of the 10th Street Gang who have been convicted as a part of this federal investigation.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge, Delano A. Reid, New York Field Division.
10 Area Residents Among 19 Defendants Indicted for Drug-trafficking ConspiraciesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that 19 defendants have been indicted for their roles in related conspiracies to distribute methamphetamine, marijuana and cocaine in Boone County, Mo., and elsewhere.
Miguel Flores-Ramirez, 31, his wife, Kena Marie Flores-Ramirez, 31, and Nina Marie Maabrey, 36, all of Clark, Mo.; Francisco B. Pedroza, also known as “Paco,” 35, Adrian Guerra-Duarte, 28, Timothy Wiyrick, 64, Dustin Matthew Short, 30, Samantha Roseann Stone, 33, Carlos Rodolfo Aguilar, 35, and Shepel Maurice Davis, 39, all of Columbia, Mo.; Alfredo Tanguma, Jr., 36, and his sister, Lissette Tanguma, 33, both of La Monte, Mo.; Dustin Tyler Kinnard, 29, of Park Hills, Mo.; Natashaw Lynn Hughes, 43, and Gregory Lee Killebrew, 52, both of Malden, Mo.; Tommie Jason Lovelace, 32, and Tonee Nikkole Jarrett, 21, of Springfield, Ill.; and Robert Eric Eugene French, 34, and Lakhram Paul Khelawan, 32, addresses unknown, were charged in a 40-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Oct. 1, 2014. That indictment was unsealed and made public today upon the arrests and initial court appearances of several defendants.
The federal indictment charges various defendants in five separate drug-trafficking conspiracies.
The federal indictment alleges that Miguel and Kena Flores-Ramirez, Guerra-Duarte, Khelawan, Davis and Mabrey participated in a conspiracy to distribute 500 grams or more of methamphetamine in Boone County and elsewhere from September 2013 to May 23, 2014.
The federal indictment alleges that Miguel and Kena Flores-Ramirez, Alfredo Tanguma, Guerra-Duarte, Wiyrick and Lissette Tanguma participated in a conspiracy to distribute 100 kilograms or more of marijuana in Boone County and elsewhere from September 2013 to March 2014.
The federal indictment alleges that Miguel Flores-Ramirez, French and Guerra-Duarte participated in a conspiracy to distribute 50 grams or more of cocaine in Boone County and elsewhere from January 2010 to June 14, 2014.
The federal indictment alleges that Miguel Flores-Ramirez, Short, Kinnard, Stone and Aguilar participated in a conspiracy to distribute marijuana in Boone County and elsewhere, beginning on an unknown date and continuing until Jan. 23, 2014.
The federal indictment alleges that Miguel Flores-Ramirez, Davis, Jarrett, Lovelace, Hughes and Killebrew participated in a conspiracy to distribute marijuana in Boone County and elsewhere, beginning on an unknown date and continuing until June 3, 2014.
In addition to the drug-trafficking conspiracies, various defendants are charged in eight counts of possessing marijuana with the intent to distribute, two counts of possessing methamphetamine with the intent to distribute and 25 counts of using a telephone to facilitate a drug-trafficking conspiracy.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, the FBI, IRS-Criminal Investigation and the Missouri State Highway Patrol.
4 February 2015
Wheeling man charged with cocaine traffickingRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returnedindictments today charging Cornelius Johnson, Jr., 38, of Wheeling, with cocaine trafficking, United States Attorney William J. Ihlenfeld, II, announced.
Johnson is alleged to have repeatedly sold crack cocaine near Wilson Playground in Wheeling throughout October and November 2014. Following an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ohio Valley Drug and Violent Crime Task Force, HIDTA-funded initiative, Johnson is charged with:
• Four counts of “Use of a Telephone to Facilitate the Distribution of Cocaine Base.” He faces up to four years in prison and a fine of up to $2,000,000.00 on each count.
• Four counts of “Distribution of Cocaine Base within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000.00 on each count.
• One count of “Maintaining a Drug Involved Premises” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00.
• One count of “Prohibited Person in Possession of a Firearm” for which he faces up to 10 years in prison and a fine of up to $250,000.00.Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the case on behalf of the government.
Wesley Chapel Woman Sentenced to Five Years for Stolen Identity Refund FraudRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Tavia Lamonica Ball to five years in federal prison for conspiracy to commit tax fraud and aggravated identity theft. As part of her sentence, the Court also entered a money judgment in the amount of $405,169, the proceeds of fraudulently obtained tax refunds.
Ball pleaded guilty on August 4, 2014.
According to court documents, Ball was an employee of Amerigroup, a managed health care company operating in approximately 19 states nationwide. The company serves more than 4.5 million beneficiaries of state-sponsored health plans, including Medicaid. In her capacity at Amerigroup, Ball had access to the company’s member database, as well as members’ personally identifying information (PII), including dates of birth and Social Security numbers.
Beginning on an unknown date, Ball and others conspired to steal PII and electronically file fraudulent federal income tax returns in order to obtain refunds to which they were not entitled. The conspirators directed some of the fraudulently obtained refunds to be deposited onto reloadable debit cards and then purchased money orders and goods for their own benefit and the benefit of others, including an automobile. The government estimates that the actual loss associated with this conspiracy is at least $405,169. The conspirators filed false tax returns claiming at least $657,087.
This case was investigated by the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Mandy Riedel, with assistance from Assistant United States Attorney Shauna S. Hale.
Virginia Beach Man Sentenced to 20 Years and Ten Months in Prison for Distribution of Heroin Resulting in DeathRead the Press Release
NORFOLK, Va. – Stephen Ron Martin II, 21, of Virginia Beach, was sentenced today to 250 months in prison, followed by three years of supervised release for distribution of heroin resulting in death.
United States Attorney Dana J. Boente of the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington, D.C.; and Police Chief Jim A. Cervera, Virginia Beach Police Department, made the announcement after Martin was sentenced by United States District Judge Raymond A. Jackson of the Eastern District of Virginia.
Martin pled guilty on October 10, 2014. According to court documents, on October 27, 2013, Martin distributed heroin to Steven Bradley Nichols. On October 29, 2013, Virginia Beach Police found an unresponsive Nichols while they were conducting a well-being check that had been called into 9-1-1. Police also found evidence of recent heroin use in plain view inside Nichols’ apartment. A depressed syringe was found on top of a desk within an arm’s length of Nichols’ body. A needle mark was on Nichols’ arm. An open plastic bag containing an off-white powder was found on the kitchen counter. The substance was later tested and found to contain heroin. An autopsy confirmed that Nichols had injected heroin and subsequently died as a result of acute heroin intoxication.
This case was investigated by HSI Norfolk and the Virginia Beach Police Department. Assistant United States Attorney Darryl J. Mitchell prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-78.Two sex offenders charged with failing to update registrationRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned indictments today charging two convicted sex offenders with failing to properly update their registration, United States Attorney William J. Ihlenfeld, II, announced.
Ronald Kisner, II, 29, of Harpers Ferry, West Virginia, was convicted in November 2011 of “Abusive Sexual Assault” in the Northern District of West Virginia. Kisner is alleged to have moved from West Virginia to Frederick County, Virginia without updating his sex offender registration. He is charged with one count of “Failure to Register,” for which he faces up to 10 years in prison and a fine of up to $250,000.00.
Robert Bruno Davis, 31, was convicted in 2002 of “Unlawful Sexual Conduct with a Minor” in Ohio. Davis moved to Wheeling, West Virginia in September 2014 to live with Angela S. Goolie, 36. He allegedly failed to update his Ohio registration or to register in West Virginia. Davis is further alleged to have repeatedly discouraged potential witnesses from cooperating with authorities and providing information on his true living arrangements. In December 2014, Goolie expressly told authorities that Davis had not been living with her in Wheeling.
Davis is charged with one count of “Failure to Register and Update Registration as a Sex Offender,” for which he faces up to 10 years in prison and a fine of up to $250,000.00. He is further charged with two counts of “Attempted Tampering with a Witness.” He faces up to 20 years in prison and a fine of up to $250,000.00 on each count. Goolie is charged with one count of “False Statement to Law Enforcement,” for which she faces up to five years in prison and a fine of up to $250,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant U.S. Attorney David Perri is prosecuting Davis and Goolie and Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski are prosecuting Kisner on behalf of the government. The United States Marshals Service investigated both cases.
Two Wheeling area men indicted on child pornography chargesRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned indictments today alleging that two Wheeling area men, including a local high school teacher, were discovered in possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Duane David Will, Jr., 33, of Moundsville, West Virginia, is alleged to have repeatedly downloaded images of child pornography in April 2014 while employed as a teacher at John Marshall High School in Marshall County, West Virginia. Will is charged with one count of “Possession of Child Pornography” following an investigation by the Marshall County Sheriff’s Department and the West Virginia Internet Crimes Against Children Task Force. He faces up to ten years in prison and a fine of up to $250,000.00.
An investigation by the Wheeling, West Virginia Police Department, the West Virginia State Police, and the Federal Bureau of Investigation revealed that Bernie George Baier, 51, of Wheeling, obtained a wireless Internet password from his neighbor. Baier is alleged to have repeatedly used the neighbor’s wireless Internet connection to download images of child pornography throughout late 2014. Baier was previously convicted in September 1995 of the felony offense of “Gross Sexual Imposition” in the Court of Common Pleas of Belmont County, Ohio. Baier is charged with one count of “Receipt and Distribution of Child Pornography,” for which he faces between 15 and 40 years in prison and a fine of up to $250,000.00. He is further charged with one count of “Possession of Child Pornography,” for which he faces between 10 and 20 years in prison and fine of up to $250,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Stephen Vogrin is prosecuting the cases on behalf of the government.
Two Springfield Residents Plead Guilty to Distributing Tons of MarijuanaRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Springfield, Mo., residents pleaded guilty in federal court today to their roles in a conspiracy that distributed thousands of pounds of marijuana in southwest Missouri.
Brian D. Hanson, 30, and Brenda Swearingin, 56, both of Springfield, pleaded guilty in separate appearances before U.S. District Judge M. Douglas Harpool to the charges contained in a Nov. 6, 2013, federal indictment.
By pleading guilty today, Hanson and Swearingin admitted that they and co-defendant Sean Bond, 39, of Republic, Mo., and others participated in a conspiracy to distribute marijuana in Greene County, Mo., and elsewhere from April 1, 2010, to June 19, 2013.
Hanson admitted that he was responsible for transporting between 1,000 kilograms and 3,000 kilograms of marijuana into southwest Missouri. Swearingin pleaded guilty to distributing less than 50 kilograms of marijuana in the conspiracy and to illegally possessing a firearm in furtherance of a drug-trafficking crime. Bond pleaded guilty on Oct. 16, 2014.
Bond arranged for Hanson and others to pick up marijuana from individuals outside of Springfield, then transport the marijuana to Springfield for Bond to distribute to other persons. Hanson and Bond also traveled together to Texas to obtain marijuana that had been smuggled into the United States from Mexico.
Swearingin admitted that she purchased marijuana from Bond and distributed it to others. Swearingin admitted that she purchased pound amounts of marijuana from Bond each month for about two years. She received approximately 10.872 kilograms of marijuana from Bond during her involvement in the conspiracy. When law enforcement officers executed a search warrant at Swearingin’s residence, they discovered a Hefty Freezer bag that contained approximately 173 grams of marijuana under a mattress in the guest bedroom. They also found a loaded Taurus .22-caliber handgun in Swearingin’s purse.
In addition to the drug-trafficking conspiracy, Hanson and Bond each pleaded guilty to participating in a conspiracy to launder the proceeds of marijuana sales. For example, Hanson gave Bond a 2002 BMW 745i and a 1969 Chevrolet Chevelle to pay a drug debt. Hanson purchased a 2003 Ford Crown Victoria at an auto auction, using proceeds from the sale of marijuana. Hanson then used this vehicle to transport marijuana from Houston and Kansas City, Mo., to Springfield.
Bond also admitted that he purchased a Wellcraft 3200 Martinique boat (which he registered in his father’s name), in part with drug proceeds, and a 2007 Cadillac Escalade that he used to distribute marijuana to customers in the Springfield area. Bond also used drug proceeds to purchase a 2002 BMW 725i, a 2002 Firebird pro-mod race car, a 1968 Chevrolet Camaro, three go karts, a 2006 Haulmark trailer and a 2004 Ford F350. That property has been seized by law enforcement officers and is subject to be forfeited to the government.
Under federal statutes, Hanson and Bond are each subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Swearingin is subject to a sentence of up to five years in federal prison without parole for the drug-trafficking conspiracy and a mandatory minimum consecutive sentence of five years in federal prison for illegally possessing a firearm. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and COMET (the Combined Ozark Multi-jurisdictional Enforcement Team).
Two Highlands County Men Sentenced for Firearm and Drug Trafficking OffensesRead the Press Release
Two Highlands County men who shot two law enforcement officers during the execution of the arrest warrants were sentenced for firearm and drug trafficking offenses.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, A.D. Wright, Acting Special Agent in Charge, DEA, Miami Field Division, Amos Rojas, Jr., U.S. Marshal, U.S. Marshals Service (USMS), Hugo Barrera, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), John Burke and Troy Walker, Special Agents in Charge, Florida Department of Law Enforcement (FDLE), Ft. Myers and Miami Regional Offices, respectively, Susan Benton, Sheriff, Highlands County Sheriff’s Office (HCSO), Paul C. May, Sheriff, Okeechobee County Sheriff’s Office (OCSO), and Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office (SLCSO), made the announcement.
Alex Guerrier, 29, and Robin Jean Guillaume, 28, were sentenced for their convictions for conspiracy to possess with intent to distribute cocaine hydrochloride and possession of a firearm in furtherance of drug trafficking in Fort Pierce, Florida. Guerrier was sentenced to 330 months in prison, to be followed by five years of supervised release and Guillaume was sentenced to 308 months in prison, to be followed by five years of supervised release.
According to court documents, Guerrier and Guillame were part of a drug trafficking organization which operated in Highlands, Broward, and Miami-Dade Counties within the Southern District of Florida and elsewhere. The drug trafficking organization was responsible for the distribution of multi-kilogram quantities of cocaine hydrochloride, cocaine base, commonly referred to as “crack” cocaine, and other illegal narcotics. During the execution of the arrest warrants for Guerrier and Guillaume, two law enforcement officers were shot.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the DEA, USMS, ATF, FDLE, HCSO, OCSO, and SLCSO. Mr. Ferrer also thanked the Sebring Police Department for their assistance in this matter. This case was prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
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.
Two Bergen County, New Jersey, Men and a New York Man Admit Roles in Cross-Country Drug Distribution SchemeRead the Press Release
NEWARK, N.J. – Two Bergen County, New Jersey, men and a New York man today admitted their roles in a scheme to transport more than 20 kilograms of cocaine from California to New Jersey, U.S. Attorney Paul J. Fishman announced.
Melvin Feliz, 48, of Englewood Cliffs, New Jersey; Irving Olivero-Pena, 42, of Edgewater, New Jersey; and Robert Crawford, 39, of Long Island City, New York; each pleaded guilty before U.S. District Judge Kevin McNulty to Count One of an indictment charging them with conspiracy to possess with the intent to distribute five kilograms or more of cocaine. Feliz, Olivero-Pena, and Crawford were arrested on March 11, 2014.
According to the documents filed in this case and statements made in court:
Feliz, Olivero-Pena and Crawford admitted that from January 2011 through March 2014, they conspired to purchase narcotics for distribution in New Jersey. On Oct. 22, 2012, they met a courier in Bergen County. They admitted that they gave the courier $549,950 in currency to transport to California via tractor trailer, where it would be used to purchase approximately 20 kilograms of cocaine. Afterwards, the courier would transport the cocaine to New Jersey for distribution. The currency was ultimately seized by law enforcement officers in California.
The conspiracy charge to which Feliz, Olivero-Pena and Crawford pleaded guilty carries a maximum potential penalty of life in prison and a $10 million fine. Sentencing for all three defendants is scheduled for May 6, 2015.
U.S. Attorney Fishman credited special agents from the Drug Enforcement Administration (DEA), Newark Division, under direction of Special Agent in Charge Carl J. Kotowski; and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, New Jersey, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorney Brian L. Urbano of the U.S. Attorney’s Office Criminal Division and Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecution’s Division in Newark.
15-045
Defense counsel:Melvin Feliz: Patrick Joyce Esq., New York
Irving Olivero-Pena: David Touger Esq., New York
Robert Crawford: Rubin Sinins Esq., Springfield, New JerseyTreasurer of Connecticut Canine Search and Rescue Organization Admits Embezzling $150,000Read the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THOMAS RECCK, 50, of New Britain, waived his right to indictment and pleaded guilty today before U.S. District Judge Jeffrey Alker Meyer in Bridgeport to fraud and tax charges stemming from an embezzlement scheme.
According to court documents and statements made in court, RECCK was the Treasurer for Connecticut Canine Search and Rescue, Inc. (“CCSAR”) in Kensington, a volunteer-based nonprofit organization dedicated to the search and rescue of missing and lost persons in the United States by using trained search and rescue dogs. In his capacity as the treasurer, RECCK had access to the bank accounts of CCSAR. From approximately January 2008 to August 2012, RECCK transferred $150,329.57 from CCCSR accounts into a separate account that he controlled and used the funds to gamble and for other personal expenses.
RECCK also failed to report the stolen funds on his federal tax returns.
RECCK pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of filing a false tax return, which carries a maximum term of imprisonment of three years. Judge Meyer scheduled sentencing for April 29, 2015.
RECCK also has agreed to full restitution, as well as back taxes, penalties and interest for the 2008 through 2012 tax years.
Following his guilty plea, RECCK was released on bond.
This investigation is being conducted by the Connecticut Financial Crimes Task Force, the Internal Revenue Service – Criminal Investigation Division and the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
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(203) 821-3722 [email protected]Todd County, Kentucky, Man Sentenced to 20 Years in Prison for Coercing Minors to Engage in Sexually Explicit Conduct and Receiving Child PornographyRead the Press Release
BOWLING GREEN, Ky. – A Todd County, Kentucky man was sentenced today in U.S. District Court by Judge Greg Stivers to 20 years in prison, to be followed by a 20-year term of supervised release, for persuading, inducing and coercing two minor females to engage in sexually explicit conduct and for receiving child pornography, announced Acting U.S. Attorney John E. Kuhn, Jr.
“The predatory conduct of Williams was despicable,” stated Acting U.S. Attorney John Kuhn. “The coercion of these girls for his own gratification was not a harmless, inconsequential act to these victims. That he put the child of one of his friends through this is almost unimaginable. This case is a sad but powerful reminder that every parent everywhere must be vigilant against sexual predation, especially in the virtual world. This lengthy sentence is well deserved.”
“This type of crime is especially egregious since he coerced several underage girls, by producing and trading sexually explicit images of them on the internet,” said Howard S. Marshall, Special Agent in Charge, FBI, Louisville Field Division. “These predators exploit the innocence of our children and this sentence should send a message that these acts will not be tolerated.”
Jesse Sanford Williams, age 34, pleaded guilty to all charges of the federal indictment on October 20, 2014. Williams was arrested on March 7, 2014, by federal agents in Kentucky, following an investigation that began in the state of Washington on March 28, 2013. In court, Williams admitted to blackmailing, by threat, at least two minor, teen girls, in order to receive sexually explicit images of them, by means of multiple Gmail and Yahoo internet accounts. Only two of the victims could be identified by authorities. After receiving initial images from the girls, Williams demanded additional sexually explicit images or videos and coerced the girls by threatening to post the initial images on the internet or send them to the girls’ parents. These activities took place between June 2011 and March 2013.
Victim-1 lived in Washington, and was 13 years of age at the onset of the Internet threats. Victim-1 appeared in court today and testified during sentencing. At one point during the time Williams coerced Victim-1, she attempted suicide.
Victim-2 lived in Todd County, and was approximately the same age as Victim-1. According to testimony offered in court today, Williams had very long and close personal relationships with the family of Victim-2, and was known by Victim-2 as “Uncle Jesse.” In his internet communications with both victims, Williams concealed his age and identity from the victims, pretending to be a much younger boy.
During the investigation, a subpoena of email accounts determined all email accounts shared the same Internet Protocol (IP) address from an account located at Logan Aluminum, a large manufacturing facility located near Russellville, Kentucky. The FBI was able to identify Williams from shift schedules, IP login times and other materials obtained in the investigation. Further, Williams admitted to knowingly receiving child pornography between June 2011 and March 2013.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and is being investigated by the Federal Bureau of Investigation (FBI) Louisville and Seattle Divisions and police in Washington State.
Timeshare Owners Revictimized by Florida TelemarketerRead the Press Release
New Scam Promised Restitution for Those Already Victimized in Earlier Theft
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on February 3, 2015, Rance White, 25, of West Palm Beach, Florida, was sentenced in the United States District Court in East St. Louis, Illinois on one count of conspiracy to commit mail and wire fraud in connection with telemarketing. White was sentenced to 18 months in prison, to be followed by two years of supervised release.White was also ordered to pay $10,919.57 in restitution and a $100 special assessment.
“White truly felt no shame.” said United States Attorney Wigginton. “Instead, White had the gall to steal from people already victimized in a timeshare re-sale scam. Let us all hope that his time in federal prison will put an end to his thievery.”
The investigation determined that White participated in a "recovery scheme," that is, a scheme to re-victimize timeshare owners who had already been victimized in a timeshare resale fraud through the false promise of a restitution award. In a timeshare resale scam, timeshare owners are contacted by someone who claims to have a buyer for the person’s timeshare property. In exchange for an upfront fee (typically in excess of $1,000), the telemarketer promises that the sale will be finalized within a certain period of time and that a check for the sale price (typically in excess of $20,000) will then be delivered to the customer. No sale ever occurs, and the fraudulent company simply pockets the money. Thousands of timeshare owners across the country have fallen victim to this scam. Using that, White would call these victims and claim, that for a fee, he could secure restitution for the earlier scam. “As I have said, do not agree to part with your funds to persons or businesses that you do not carefully check out. The old adage is always true – if it sounds too god to be true, it is not true. I urge consumers, no matter how desperate, to use judgment and common sense before agreeing to give up your hard-earned dollars.” noted United States Attorney Wigginton.
South Florida is a hotbed for timeshare resale fraud, and in recent years, several major timeshare resale operations located in Palm Beach County, Florida, have been investigated and prosecuted in the Southern District of Illinois, including companies called Universal Marketing Solutions (UMS), Creative Vacation Solutions (CVS), and American Marketing Group (AMG). One of the most publicized of these prosecutions was the case against former CVS CEO Jennifer Kirk: United States v. Kirk, No. 3:11-CR-30093-GPM. Kirk was sentenced to 188 months in federal prison, but victims were unable to be made whole, thus creating the opportunity for the instant scam.
This prosecution is one of nearly 75 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case was prosecuted by Assistant U.S. Attorneys Bruce Reppert and William Coonan, and Special Assistant United States Attorney Michael Hallock.
Three charged with unlawful possession of firearmsRead the Press Release
WHEELING, WEST VIRGINIA – A federal grand jury returned indictments today charging three convicted felons with unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced.
Michael Northcraft, 41, of Weirton, West Virginia, was previously convicted in the Circuit Court of Hancock County, West Virginia of the felony offense of “Entering a Building Other than a Dwelling.“ As a result of that conviction, he is prohibited from possessing a firearm. Northcraft is alleged to have been in possession of multiple firearms in December 2014, including three pistols, one revolver, two shotguns, and two rifles. He is charged with one count of “Prohibited Person in Possession of a Firearm” following an investigation by the Brooke County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. He faces up to 10 years in prison and a fine of up to $250,000.00.
Timothy William Cook, 30, of Martinsburg, West Virginia, was previously convicted in the Northern District of West Virginia of the felony offense of “Possession with Intent to Distribute Heroin.” Cook is alleged to have been in possession of both a pistol and a quantity of heroin in May 2014 in Berkeley County, West Virginia. Cook is charged with one count of “Felon in Possession of Firearms,” for which he faces up to 10 years in prison and a fine of up to $250,000.00. He is further charged with one count of “Possession with Intent to Distribute Heroin,” for which he faces up to 20 years in prison and a fine of up to $250,000.00.
William Gene George, Jr., 43, of Martinsburg, West Virginia, was previously convicted in the Circuit Court of Berkeley County, West Virginian of “Felony Child Neglect” in June 2007. George is alleged to have been in possession of a stolen rifle. He is charged with one count of “Felon in Possession of a Firearm” and one count of “Possession of a Stolen Firearm.” He faces up to 10 years in prison and a fine of up to $250,000.00 on each count.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Berkeley County Sheriff’s Office investigated Cook and George.
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 defendants.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Stephen Vogrin is prosecuting Northcraft and Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski are prosecuting Cook and George on behalf of the government.
Texas National Guard Recruiter and Assistant Convicted in Bribery and Fraud SchemeRead the Press Release
An Army National Guard recruiter and recruiting assistant were convicted today for their roles in a bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Jammie T. Martin, 37, and Michelle H. Davis, 34, both of Katy, Texas, were convicted today of conspiracy, bribery, wire fraud and aggravated identity theft. The defendants were indicted on Aug. 7, 2013, and will be sentenced on May 7, 2015, by U.S. District Judge David Hittner of the Southern District of Texas.
From February 2009 through April 2011, Martin served as an Army National Guard recruiter. Davis served as a recruiting assistant with the Guard Recruiting Assistance Program (G-RAP), which was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the National Guard. Both defendants worked out of a Texas National Guard Armory known as the Westheimer Armory.
According to evidence presented at trial, Martin—who, as a recruiter, was ineligible for the G-RAP incentives—provided the personal identifying information of potential soldiers to Davis and at least three other National Guard soldiers. Davis and the others then falsely claimed they were responsible for referring the potential soldiers to join the military and fraudulently received referral bonus payments through the G-RAP program. Davis and the others paid approximately half of each fraudulent bonus payment to Martin as a kickback.
To date, this investigation has led to the conviction of 26 individuals, including Martin and Davis.
This case is being investigated by the San Antonio Fraud Resident Agency of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit and prosecuted by Trial Attorneys Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney John P. Pearson of the Southern District of Texas.