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Friday 12 December 2014
Former Alabama Hospital Employee Sentenced to Prison for Identity TheftRead the Press Release
A former Alabama hospital employee was sentenced to serve 24 months in prison today before the Honorable Judge Myron H. Thompson in U.S. District Court for the Middle District of Alabama in connection with his role in committing stolen identity tax refund fraud, announced Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
Kamarian D. Millender was also ordered to pay $18,915 in restitution.
On July 8, 2014, Millender pled guilty to one count of aggravated identity theft. According to court documents, Millender worked as a lab technician at a medical facility in the Dothan, Alabama, area. He and others stole patient medical records that contained personal identification information, which Millender then used to file false tax returns in order to obtain fraudulent tax refunds from the Internal Revenue Service (IRS).
Millender’s actions aided in the filing of more than 100 false federal tax returns, which victimized approximately 73 individuals and attempted to defraud an estimated $536,028 from the IRS. The IRS was able to stop the vast majority of the falsely claimed refunds, but approximately $18,915 in refunds were issued.
This case was investigated by special agents of IRS-Criminal Investigation and inspectors from the U.S. Postal Inspection Service. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Tax Division are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at the division website.
Elmira Man Sentenced on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Chad Dolaway, 24, of Pine City, NY, who was convicted of receipt of child pornography, was sentenced to 60 months in prison and 15 years supervised release by U.S. District Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that the defendant came to the attention of law enforcement in 2011 when undercover agents from both the Federal Bureau of Investigation and Homeland Security Investigations downloaded child pornography from Dolaway through a peer to peer file sharing network. The defendant received child pornography and maintaining the images on a computer that he owned. Some of the images portrayed prepubescent children and children engaged in violent conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Chemung County Sheriff’s Office, under the direction of Sheriff Christopher Moss.
Drug Trafficker Sentenced for Distributing Kilograms of Heroin in Cecil County and other StatesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Orlando Nunez DeLeon, a/k/a “Alberto Ando,” age 37, of New York today to four years in prison followed by two years of supervised release for conspiring to distribute and possess with intent to distribute a kilogram or more of heroin, in connection with a distribution ring that operated in Cecil County, Maryland, Delaware, Pennsylvania and New York.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge David G. Dongilli, Philadelphia Division of the DEA; Cecil County Sheriff Scott Adams; Chief Matthew Donnelly of the Elkton Police Department; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Cecil County State’s Attorney Ellis Rollins; and Colonel Nathaniel McQueen, Jr. of the Delaware State Police.
According to his plea agreement, from at least January 2013, DeLeon’s co-conspirators obtained bulk kilogram quantities of heroin from a Pennsylvania-based distributor and others. Co-conspirator Jorge Ayala-Pizzaro and others took the heroin to an apartment in New York where DeLeon and up to 10 others cut it and re-packaged it for sale to customers in Maryland and Delaware, including Rachine Garnett.
Beginning in January 2013, the Cecil County Drug Enforcement Task Force and DEA obtained a court-authorized wiretap on phones used by DeLeon’s co-conspirators. DeLeon is overheard in numerous conversations discussing: the labeling of heroin and its quality; preparing the heroin for customers; the people working to cut the heroin; and the transportation of the heroin.
On August 15, 2013, investigators executed a search warrant at an apartment in the Bronx, New York, where they found DeLeon and several others. They seized over a kilogram of heroin, some of which had already been repackaged into logs and some of which was in the process of being packaged. Over the course of the conspiracy, DeLeon knew that members of the conspiracy would distribute at least 10 kilograms of heroin.
Approximately 100 agents and officers from 11 law enforcement agencies assisted in the arrests of the defendants and searches of residences and vehicles associated with the defendants in Maryland, Delaware, Pennsylvania, and New York on August 15, 2013. Six co-defendants have pleaded guilty to their participation in the drug conspiracy, including Rachine Huron Garnett, a/k/a “Sheen,” “Red,” “Ray,” and “Blockhead, age 38, of Elkton, Maryland; and Michael Roberts, a/k/a “Spook,”, age 37,of New Castle, Delaware; and Jorge Ayala-Pizzaro, Jr., age 25, of Philadelphia, Pennsylvania. Garnett, Roberts and Ayala-Pizzaro were each sentenced to 10 years in prison for their roles in the conspiracy.
United States Attorney Rod J. Rosenstein praised the DEA, Cecil County Drug Task Force, and Delaware State Police for their work in the investigation. Mr. Rosenstein also recognized the U.S. Attorney’s Offices in the District of Delaware, Southern District of New York and the Eastern District of Pennsylvania, the Office of the Special Narcotics Prosecutor for the City of New York and the New York Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and James G. Warwick, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Dmv Employee Pleads Guilty to Mail FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – The United States Attorney’s Office announced today that Latonya Young, 44, an employee of the Erie County Clerk’s Office who was assigned to work at the New York State Department of Motor Vehicles (NYS DMV), pleaded guilty plea to mail fraud before Chief U.S. District Court Judge William M. Skretny. The charge carries a maximum sentence of 20 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the prosecution, stated that Young worked as a motor vehicle representative at the NYS DMV and was authorized to conduct transactions. The defendant had access to a NYS DMV database and computer system that contained driver’s licenses, and motor vehicle registration and title records.
Between June 13, 2012, and August 30, 2012, Young unlawfully processed fraudulent duplicate title applications for a person working with the government in return for cash payments totaling $725. In processing the fraudulent documents, the defendant unlawfully forged the name of the person listed on the duplicate title applications.
Young also admitted that in 2010, she assisted another in amending a New York State license to create a fake identification. The fake identification was created to enable an individual under the legal drinking age to obtain alcohol.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, NYS Department of Motor Vehicles, under the direction of Commissioner Barbara Fiala, Buffalo Police Department, under the direction of Commissioner Daniel Derenda, NYS Department of Taxation and Finance, Criminal Investigations Division, under the direction of Commissioner Thomas Mattox, NYS Department of Financial Services, under the direction of Superintendent Benjamin Lawsky, Criminal Investigations Division, and the NYS Inspector General’s Office, under the direction of Inspector General Catherine Leahy Scott.
Young is scheduled to be sentenced on April 8, 2015 at 10:00 a.m. before Judge Skretny.
District Man Sentenced to 15-Year Prison Term for 2013 Murder in Southeast Washington-Shooting Took Place in Front of Elementary School-Read the Press Release
WASHINGTON – Anthony Williams, 18, of Washington, D.C., was sentenced today to a 15-year prison term for a murder that took place in November 2013 in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Williams pled guilty in October 2014, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for a 15-year prison term. The Honorable John Ramsey Johnson accepted the plea today and sentenced Williams accordingly. Following completion of his prison term, Williams will be placed on five years of supervised release.
According to the government’s evidence, the victim, James Edward Booker, 24, was walking in the 3200 block of 6th Street SE, in front of Martin Luther King Jr. Elementary School, at about 9:55 p.m. on Nov. 5, 2013. He was approached from behind by Williams and two unidentified accomplices. Williams had a handgun in his right hand, and stood in front of Mr. Booker, blocking his path. He then pointed the weapon at Mr. Booker, who turned to run away. Williams began firing the gun, shooting Mr. Booker multiple times as he ran up 6th Street. Williams and the others then fled the scene.
Mr. Booker was taken to a hospital and pronounced dead about two hours after the shooting. Williams has been in custody since his arrest a week after the murder.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the assistance provided by the Office of the Chief Medical Examiner for the District of Columbia. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney; Litigation Technology Specialists William Henderson and Paul Howell; Investigative Analyst Zachary McMenamin, and former Assistant U.S. Attorney Lara Worm, who investigated the case. Finally, he thanked Assistant U.S. Attorney Kendra Briggs, who investigated and prosecuted the matter.
14-272District Man Found Guilty of First-Degree Murder While Armed in 2013 Murders of Siblings in Northeast Washington-Sister Died While Trying to Shield Her Younger Brother from Gunfire-Read the Press Release
WASHINGTON – Kevin Walker, 39, of Washington, D.C., was found guilty by a jury today of two counts of first-degree murder while armed for the killings of siblings Jamie and Jamal Jenkins in July 2013, U.S. Attorney Ronald C. Machen Jr. announced.
The jury also found Walker guilty of two related firearms offenses. The verdicts followed a trial in the Superior Court of the District of Columbia. The Honorable Russell F. Canan scheduled sentencing for March 12, 2015.
According to the government’s evidence, on July 20, 2013, at about 4:30 a.m., Walker killed Jamie Jenkins, 28, and her brother, Jamahl Jenkins, 21, in the 5300 block of East Capitol Street NE. Prior to the shootings, Jamie Jenkins had been involved in a fight with Walker’s girlfriend. Jamahl Jenkins was present, but not involved. After the fight broke up, the siblings left the area, but they came back a few minutes later to look for Jamie Jenkins’s lost cell phone.
Walker then came outside with a gun and approached the pair. Eyewitnesses screamed at Walker that the fight was over, and that it wasn’t serious. However, words were exchanged, and Walker then fired his gun. According to the government’s evidence, Jamie Jenkins was fatally shot when she jumped in front of the first bullet intended for her brother. Walker then followed Jamahl Jenkins and shot him six times in the back as he tried to run away.
After the shooting, Walker fled to North Carolina, where he was apprehended by the U.S. Marshals Service in September 2013.
In announcing the verdicts, U.S. Attorney Machen commended the work of the Metropolitan Police Department, which investigated the case. He also expressed appreciation for the assistance provided by the District of Columbia’s Office of the Chief Medical Examiner, the District of Columbia Department of Forensic Services, and the U.S. Marshals Service. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialists Anisha Bhatia and Leif Hickling; Victim/Witness Advocate Marcia Rinker; Investigative Analyst Zachary McMenamin; and Paralegal Specialists Kwasi Fields and Kendra Johnson. Finally, he commended the work of Assistant U.S. Attorneys Magdalena Acevedo and Demian S. Ahn, who investigated and prosecuted the case.
14-274Denton County Sheriff’s Deputy Indicted on Child Pornography ChargesRead the Press Release
Department of Justice
Office of Public AffairsPlano, Texas –U.S. Attorney John M. Bales announced today that a deputy with the Denton County Sheriff’s Department has been indicted on child exploitation charges in the Eastern District of Texas.
The defendant, Joe Edward Cummings, 36, of Justin, TX, was indicted by a federal grand jury on December 10, 2014. According to the indictment, between June and October 2014, Cummings transported child pornography using the internet and a cloud-based storage service and he possessed digital media that contained child pornography files.
Cummings appeared before U.S. Magistrate Judge Don Bush for an initial appearance on December 12, 2014. If convicted, Cummings faces a term of imprisonment of not less than five years and up to twenty years in federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The indictment is the culmination of an investigation conducted by the United States Secret Service and Texas Department of Public Safety – Texas Rangers, with assistance from the Justin Police Department, Denton County Sheriff’s Office and the United States Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorney Marisa Miller.
The grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Credit Card Fraud Results in 15 Year SentenceRead the Press Release
ATLANTA - Paul L. Black, a/k/a Marcus Lively and Ednecdia Sutina Johnson, a/k/a Tina Johnson have both been sentenced to 15 years in prison for access device fraud, possession of device-making equipment, possession of false identification documents, and possession of a document-making implement.
“This case demonstrates that so-called white collar crime can also give rise to incredible violence,” said United States Attorney Sally Quillian Yates. “This credit card lab and large volume of account numbers is a reflection of the increasingly sophisticated tools of identity thieves.”
“The defendants endeavored to use technology to their benefit and others’ detriment,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office, “This case illustrates that there are no victimless crimes and the sentences prove that those who commit crimes will be put behind bars.”
According to United States Attorney Yates, the charges and other information presented in court: Early in the morning of December 21, 2011, Clayton County officers responded to a 911 call reporting a home invasion at the residence of the defendants. When they arrived at the scene, officers found one of the presumed home invaders at the foot of the driveway with a bullet wound to his head. The officers also found the front door of the house kicked in and saw a sawed-off pump shotgun in a large pool of blood in the foyer. Blood was also on the columns in the foyer and the walls had multiple bullet holes.
The responding officers searched the house where they found more blood in the master bedroom, including on both doors and at the foot of the bed. The bedroom door also had been shot by a shotgun and the door that led from the bedroom to the backyard was also smeared with blood. The officers moved to the basement, where they discovered a trail of blood leading to a locked door that had blood smeared on its handle. Officers forced the door open and when they entered the room they found a highly sophisticated credit card lab that contained credit card presses, computers, printers, card embossers, stacks of blank credit cards and partially completed cards, cash, and two handguns.
Ultimately, the United States Secret Service determined that the lab had over 97,000 unique credit and debit card account numbers, over 800 completed fraudulent credit cards, and about 100 fake IDs. They also found $199,000 in cash, over $380,000 in jewelry, and gift cards worth more than $43,000.
Paul L. Black and Ednecdia Sutina Johnson lived alone at the house. As a result of the discovery of the credit card lab, fraudulent credit cards, and fake IDs, Black and Johnson were indicted by a federal grand jury in a four count indictment charging access device fraud, that is possession of counterfeit credit cards, possession of device-making equipment, the credit card making machines, possession of false identification documents, and possession of document-making implements. At the time of their arrest, Johnson was on supervised release relating to her earlier conviction for federal bank fraud.
Black, 48, of Jonesboro, Ga., has been sentenced by United States District Court Judge Richard Story to 15 years in prison to be followed by three years of supervised release. Black was convicted on these charges on March 18, 2014, after he pleaded guilty. Johnson, 48, also of Jonesboro, Ga., has been sentenced to 15 years in prison to be followed by three years of supervised release. Johnson was convicted on these charges on March 18, 2014, after she pleaded guilty.This case was investigated by the United States Secret Service.
Assistant United States Attorney Christopher J. Huber 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/.
Costa Rican Woman Sentenced to Prison for Role in Human Smuggling ConspiracyRead the Press Release
A citizen and resident of Costa Rica was sentenced today to 30 months in prison for her leadership role in a conspiracy to smuggle undocumented migrants to the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE- HSI) Washington, D.C., Field Office made the announcement. U.S. District Judge Ursula M. Ungaro of the Southern District of Florida imposed the sentence.
Mercedes Morera Roche, 49, of Costa Rica, was extradited to the United States from Panama on Aug. 21, 2014, to face human smuggling charges. Roche pleaded guilty on Oct. 6, 2014, to conspiracy to smuggle more than 25 undocumented migrants from Cuba to the United States.
According to her plea agreement, Roche admitted that between 2004 and 2011, she was an organizer of a human smuggling network that provided instructions, fraudulent identity and travel documents, escorts, transport, safe house locations, and other assistance to facilitate the illicit travel of undocumented migrants to the United States. Roche admitted that in some cases, she provided fraudulent passports so that undocumented migrants could fly to the United States with the help of corrupt foreign airline and immigration officials. Roche directed the migrants to destroy the fraudulent documents during the flights to the United States, and instructed the migrants about what to do and say to U.S. immigration authorities upon landing. In other cases, Roche coordinated the smuggling of undocumented migrants over land routes through Latin America and Mexico into the United States. Roche solicited payments of up to $10,000 for each undocumented migrant.
The investigation was pursued under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates with and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The investigation was conducted by ICE- HSI’s Washington, D.C. Field Office with support from the Human Smuggling Trafficking Center and U.S. Customs and Border Protection’s National Targeting Center. Critical assistance was also provided by HSI’s Miami Field Office and the ICE Attaché Office in Panama. Extradition assistance was provided by the Criminal Division’s Office of International Affairs, INTERPOL Washington and the United States Marshals Service. The Justice Department is grateful for the significant assistance provided by the Panamanian Ministry of Foreign Affairs. This case was prosecuted by Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Robert Emery of the Southern District of Florida.
Cortez Woman Pleads Guilty to Filing False Tax Returns Relating to Theft of FundsRead the Press Release
DENVER – Lisa Kay Balderrama, age 50, of Cortez, Colorado, pled guilty last week in Durango before U.S. Magistrate Judge David L. West to making false statements on a tax return, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Balderrama is scheduled to be sentenced by a U.S. District Court in Durango on April 8, 2015.
Balderrama waived her right to be indicted and thus was charged by Information on October 20, 2014. She pled guilty before Magistrate Judge West in Durango on December 2, 2014.
According to information contained in the plea agreement as well as the Information, Lisa Balderrama began working for Empire Electric Association in Cortez, Colorado in December 2005 as a Customer Services Representative. At the end of October 2012, accounting employees for Empire noted that the manual check register was not reconciling with internal bookkeeping and that the two were off by over $200,000. These employees brought this to Balderrama's attention, questioning whether certain deposits had been made. Balderrama convinced the other employees that deposits had gone into the bank, that everything was okay, and that she would find the discrepancy.
In mid-December 2012, she was again questioned about the discrepancy and about a $277,000 electronic transaction she had posted on October 22, 2012. The following Monday, Balderrama reported to work and confessed to her superiors that she had stolen approximately $280,000 from Empire Electric. The investigation revealed that from approximately 2009 through 2012, Balderrama stole money from customers who paid cash for their electric bills. Empire’s accountant conducted an investigation into their books and found that $277,035 in adjustments had been made to 184 accounts in order to cover the shortages due to Balderrama’s thefts.
Balderrama failed to report a combined total income of $277,035 on her tax returns in 2010, 2011, 2012 and 2013. The tax loss to the IRS which resulted from Balderrama's false statements totaled $64,477.
Balderrama pled guilty to one count of a false statement on a tax return, which carries a penalty of not more than 3 years in federal prison, and a fine of up to $250,000.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Cortez City Police Department. Balderrama is being prosecuted by Assistant U.S. Attorney Dondi Osborne in the Colorado U.S. Attorney’s Durango Branch Office.
Coeur D'Alene Man Pleads Guilty to Unauthorized Use of National ForestRead the Press Release
COEUR D'ALENE - Peter Todd Gokey, 46, of Blanchard, Idaho, pleaded guilty yesterday to unauthorized use of National Forest lands, U.S. Attorney Wendy J. Olson announced. Gokey was indicted by a federal grand jury in Coeur d'Alene on March 18, 2014.
According to the plea agreement, Gokey admitted that on and prior to January 15, 2013, he went on U.S. Forest Service land with the intent to cut down timber on the land, an activity that requires special-use authorization issued by the Forest Service. The defendant had not applied for a special-use authorization to deforest the land when scouting the land for clearing.
Use or occupancy of the National Forest System land or facilities without special-use authorization is punishable by up to six months in prison or five years of probation, and a maximum fine of $500.00.
Sentencing is set for February 18, 2015, before U.S. Magistrate Judge Candy W. Dale at the federal courthouse in Coeur d'Alene.
The case was investigated by the U.S. Forest Service.
Cicero Man Admits Mailing Fake Anthrax/Ricin LettersRead the Press Release
SYRACUSE, NEW YORK - BRIAN DANIEL NORTON, age 59, of Cicero, New York, entered a guilty plea in U.S. District Court in Utica to two federal felony counts of conveying false information and hoaxes in violation of 18 U.S.C. §1038(a) according to United States Attorney Richard S. Hartunian. Norton faces a maximum possible sentence of five years incarceration and a $250,000 fine. He is being detained pending sentencing scheduled in Utica for April 10, 2015 at 11 am.
In court, Norton admitted he mailed more than 20 death threat letters that contained a white powder he claimed to be either anthrax or ricin. The letters were mailed to various addresses in the Syracuse, New York area and elsewhere between 1997 and 2012. Those receiving the letters included LeMoyne College and Bishop Ludden High School in Syracuse, as well as U.S. Senator John McCain, then-Secretary of Defense Robert Gates and former Congresswoman Ann Marie Buerkle. Later analysis of the powder contained in the letters proved that it was harmless.
The case was investigated by the Federal Bureau of Investigation, Syracuse Resident Office and the United States Postal Inspection Service, Syracuse Office, and prosecuted by Assistant United States Attorney Stephen C. Green.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
Cicero Man Admits Mailing Fake Anthrax/Ricin LettersRead the Press Release
Brian Daniel Norton, age 59, of Cicero, New York, entered a guilty plea in U.S. District Court in Utica to two federal felony counts of conveying false information and hoaxes, according to United States Attorney Richard S. Hartunian. Norton faces a maximum possible sentence of five years incarceration and a $250,000 fine. He is being detained pending sentencing scheduled in Utica for April 10, 2015, at 11 am.
In court, Norton admitted he mailed more than 20 death threat letters that contained a white powder he claimed to be either anthrax or ricin. The letters were mailed to various addresses in the Syracuse, New York, area and elsewhere between 1997 and 2012. Those receiving the letters included LeMoyne College and Bishop Ludden High School in Syracuse, as well as U.S. Senator John McCain, then-Secretary of Defense Robert Gates and former Congresswoman Ann Marie Buerkle. Later analysis of the powder contained in the letters proved that it was harmless.
The case was investigated by the Federal Bureau of Investigation, Syracuse Resident Office and the United States Postal Inspection Service, Syracuse Office, and prosecuted by Assistant United States Attorney Stephen C. Green.
For additional information, contact Executive Assistant U.S. Attorney John G. Duncan at 315- 448-0672.
Chief Technology Officer of Liberty Reserve Sentenced to Five Years in PrisonRead the Press Release
The former chief technology officer of Liberty Reserve was sentenced today to serve five years in prison for conspiring to operate an unlicensed money transmitting business that processed more than $16 billion through Liberty Reserve’s digital currency system. The Court found that Marmilev understood the illegal nature of Liberty Reserve’s business and that he knew that a wide array of criminal enterprises used Liberty Reserve to further their criminal activity.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement.
“Marmilev used his technical expertise to create a virtual currency business that was used extensively by criminals throughout the world,” said Assistant Attorney General Caldwell. “Marmilev boasted that the crime group was beyond the reach of U.S. law enforcement, but he couldn’t have been more wrong. Today’s prison sentence shows that those who hide their illegal activities on-line and off-shore will be caught and sent to prison.”
“Mark Marmilev spent years designing and maintaining the technological architecture that allowed Liberty Reserve to operate a global payment processor and money transfer system that catered to criminals,” said Manhattan U.S. Attorney Preet Bharara. “Now, he will pay for that crime with five years in federal prison.”
Mark Marmilev, 35, of Brooklyn, New York, pleaded guilty on Sept. 11, 2014, for his role in designing and maintaining the technological infrastructure for Liberty Reserve, a company that operated one of the world’s most widely used digital currency services. In addition to the prison sentence, U.S. District Judge Denise L. Cote also ordered Marmilev to pay a $250,000 fine.
According to allegations contained in the indictment, and statements made in other court documents filed in Manhattan federal court and related court proceedings:
Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured, and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes. It emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity because it provided an infrastructure that enabled cybercriminals to conduct anonymous and untraceable financial transactions.
Before being shut down by the U.S. government in May 2013, Liberty Reserve had more than five million user accounts worldwide, including more than 600,000 accounts associated with users in the United States, and processed tens of millions of transactions through its system, totaling more than $16 billion in funds. These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, child pornography, narcotics trafficking, and other crimes.
According to court documents, Marmilev was a longtime associate of Liberty Reserve founder Arthur Budovsky, and he served as Liberty Reserve’s chief technology officer. In that role, Marmilev was principally responsible for designing and maintaining Liberty Reserve’s technological infrastructure. Marmilev also promoted Liberty Reserve to criminals on the Internet, where, using aliases, he touted Liberty Reserve’s lack of anti-money laundering policies and its tolerance for “shady businesses.”
In conjunction with the sentencing, a civil forfeiture complaint was filed today seeking the forfeiture of Gourmet Boutique, a retail grocery business located in Brooklyn, New York, and the forfeiture of Marmilev’s interest in Grimaldi’s, a pizzeria located in the Coney Island area of Brooklyn, New York; according to the complaint, Marmilev purchased these business interests using more than $1.6 million in Liberty Reserve proceeds.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance fromthe United States Secret Service’s New York Electronic Crimes Task Force. The Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Spanish National Police’s Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation, and the Swiss Federal Prosecutor’s Office also provided assistance.
This case is being prosecuted jointly by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the U.S. Attorney’s Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit in the Southern District of New York, with assistance from the Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section.
Trial Attorney Kevin Mosley of AFMLS and Assistant U.S. Attorneys Serrin Turner, Andrew Goldstein and Christine Magdo of the Southern District of New York are in charge of the prosecution, and Assistant U.S. Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
Chief Technology Officer of Liberty Reserve Sentenced in Manhattan Federal Court to Five Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Leslie R. Caldwell, Assistant Attorney General for the Justice Department’s Criminal Division, announced that MARK MARMILEV was sentenced today to five years in prison for conspiring to operate an unlicensed money transmitting business that he knew involved the transmission of funds derived from criminal activity. MARMILEV was principally responsible for designing and maintaining the technological infrastructure for Liberty Reserve, a company that operated one of the world’s most widely used digital currency services. MARMILEV pled guilty in September 2014 before U.S. District Judge Denise L. Cote, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Mark Marmilev spent years designing and maintaining the technological architecture that allowed Liberty Reserve to operate a global payment processor and money transfer system that catered to criminals. Now, he will pay for that crime with five years in federal prison. ”
Assistant Attorney General Leslie R. Caldwell said: “Marmilev used his tech savvy to create a virtual currency business that was used extensively by criminals throughout the world. He and Liberty Reserve’s founders boasted they were outside the reach of U.S. law enforcement, and he couldn’t have been more wrong. His prison sentence shows that those who hide their illegal activities from the scrutiny of the Justice Department will be caught and will go to prison.”
According to allegations contained in the Indictment filed against Liberty Reserve, MARMILEV, and six other individual defendants, and statements made in other documents filed in Manhattan federal court and related court proceedings:
Liberty Reserve was incorporated in Costa Rica in 2006 and billed itself as the Internet’s “largest payment processor and money transfer system.” Liberty Reserve was created, structured, and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes. It emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity. Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals around the world to conduct anonymous and untraceable financial transactions.
Before being shut down by the U.S. government in May 2013, Liberty Reserve had more than five million user accounts worldwide, including more than 600,000 accounts associated with users in the United States, and processed tens of millions of transactions through its system, totaling more than $16 billion in funds. These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, child pornography, narcotics trafficking, and other crimes.
MARMILEV was a longtime associate of Liberty Reserve founder Arthur Budovsky and served as Liberty Reserve’s chief technology officer. In that role, MARMILEV was principally responsible for designing and maintaining Liberty Reserve’s technological infrastructure. MARMILEV worked for Liberty Reserve for years despite knowing that the business was used extensively to process criminal transactions. MARMILEV even promoted Liberty Reserve to criminals on Internet discussion forums, where, using aliases, he touted Liberty Reserve’s lack of anti-money laundering policies and its tolerance for, as he put it, “shady businesses.”
In addition to the prison sentence, MARMILEV, 35, of Brooklyn, New York, was sentenced to three years of supervised release and a $250,000 fine. In conjunction with the sentencing, a civil forfeiture complaint was filed today seeking the forfeiture of Gourmet Boutique, a retail grocery business located in Brooklyn, New York, and the forfeiture of MARMILEV’s interest in Grimaldi’s, a pizzeria located in the Coney Island area of Brooklyn, New York; according to the complaint, MARMILEV purchased these business interests using more than $1.6 million in Liberty Reserve proceeds.
Mr. Bharara praised the outstanding work of the United States Secret Service, the Internal Revenue Service-Criminal Investigation, and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, which worked together in this case as part of the Global Illicit Financial Team. Mr. Bharara also thanked the United States Secret Service’s New York Electronic Crimes Task Force for their extraordinary assistance with the investigation. Additionally, Mr. Bharara specially thanked all the international law enforcement agencies that assisted in the investigation, in particular, the Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Spanish National Police, Financial and Economic Crime Unit, the Cyber Crime Unit at the Swedish National Bureau of Investigation, and the Swiss Federal Prosecutor’s Office.
This case is being prosecuted jointly with the Department of Justice’s Asset Forfeiture and Money Laundering Section (“AFMLS”), which is overseen by Assistant Attorney General Leslie R. Caldwell. Mr. Bharara thanked AFMLS for its partnership and also thanked the Department of Justice’s Office of International Affairs and Computer Crime and Intellectual Property Section for their support.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Serrin Turner, Andrew Goldstein, and Christine Magdo of the Southern District of New York and Trial Attorney Kevin Mosley of AFMLS are in charge of the prosecution, and Assistant United States Attorney Christine Magdo is in charge of the forfeiture aspects of the case.
The charges contained in the Indictment against certain of MARMILEV’s co-defendants remain pending and are merely accusations. Those defendants are presumed innocent unless and until proven guilty.
California Woman Sentenced for Failure to Register as a Sex Offender in South CarolinaRead the Press Release
Contact Person: William E. Day II (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shana Marie Lawson, age 36, was sentenced in federal court in Columbia, South Carolina, for failure to register as a sex offender, a violation of 18 U.S.C. § 2250(a). Chief United States District Judge J. Michelle Childs of Columbia sentenced Lawson to 15 months to be followed by 5 years supervised release .
Evidence presented at the change of plea hearing established that Lawson was sentenced in Virginia for "Travel with Intent to Engage in Sexual Act with a Minor." After serving her sentence in Florida, Lawson moved to California and registered as a sex offender, but then moved to Lancaster, South Carolina, without registering. Investigation revealed that she had been living with someone she met in prison and that person’s family.
The case was investigated by agents of the U.S. Marshal. Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.Bloods Gang Leader Sentenced to 10 Years in Prison in Howard County Racketeering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Rouchell Chesson, a/k/a “Black,” age 31, of Washington, D.C., today to 10 years in prison followed by three years of supervised release for conspiring to participate in a racketeering conspiracy in connection with the Bloods gang operating primarily out of Howard County, Maryland.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Howard County Police Chief Gary L. Gardner; Baltimore Police Commissioner Anthony W. Batts; and Howard County State’s Attorney Dario Broccolino.
The defendant was identified as a member of the Bloods as the result of a long term investigation conducted by ATF and the Howard County Police Department. The investigation included four court ordered wiretaps on gang members’ cell phones. The Bloods, a national criminal street gang with members operating in and around Howard County, Maryland, committed violent acts within the gang to maintain discipline, and against rival gangs.According to his plea agreement, Chesson was a leader in the “Tree Top Piru” or “TTP” set of the Bloods gang, and an associate of Blood gang members since at least 2011. Chesson directed and participated in, or had knowledge of, robberies committed by fellow gang members, sold guns, and dealt heroin and prescription pills, to and with fellow gang members. Chesson provided gang documents to new gang members, instructed them to memorize the gang rules and then destroy the documents, sanctioned TTP members for unauthorized conduct and granted membership into TTP.
To date, 19 defendants have pleaded guilty to their roles in the racketeering and drug conspiracies, as a result of the two year long investigation by the ATF and Howard County Police Department into Bloods/CTC gang activity in Howard County. Michael Dominique Johnson, a/k/a "Ace", age 20, of Columbia, Maryland was sentenced to 205 months in prison, after admitting that he committed at least three armed robberies of individuals in which drugs, cash and/or other items were stolen; assaulted others; and sold crack cocaine, oxycodone and other drugs. Johnson also prostituted females, including a minor.
Kenneth Ragan-Armstrong, a/k/a "Keezy," age 23, of Savage and Laurel, Maryland, was sentenced to 193 months in prison after admitting that he founded “Cut Throat Committee,” or “CTC,” a gang whose members are associated with and/or members of the Bloods gang. Ragan-Armstrong committed at least two armed robberies of individuals in which drugs, cash and/or other items were stolen. During one of the robberies, a home invasion in Laurel, Maryland, he pistol whipped the victim on the head resulting in serious bodily injury. Ragan-Armstrong regularly sold drugs, primarily marijuana. During his two day sentencing hearing, witnesses also testified about Ragan-Armstrong’s participation in a sexual assault that occurred in December 2010 at an apartment in Catonsville, Maryland. The Court credited the evidence of the sexual assault when it imposed Ragan-Armstrong’s sentence.
Anthony Preston, a/k/a “40,” or “Tone,” age 27, of Laurel, Maryland, admitted to directing or participating in at least 4 assaults, including an April 20, 2013 assault of a former gang member with a knife and mace in a convenience store. Preston is seen on the store’s surveillance video hitting the girlfriend of the gang member in her face and attempting to spray her with mace. Bystanders, including a young child, were injured by the mace. Preston was later overheard by law enforcement admitting to the assault and stating that if he’d had his gun, he would have killed the man. Preston also was a leader in drug trafficking, selling drugs, including crack cocaine and oxycodone, as early as 2007. Preston, who was previously convicted of armed robbery and attempted armed robbery, has agreed to be sentenced to 20 years in prison at his sentencing scheduled on February 6, 2015.
Giovanni Wright, a/k/a "G," age 22, of Elkridge, Maryland, admitted that he and a co-defendant robbed a rival gang member at gunpoint. In January 2013, Wright fired a gun at a victim’s residence as he and another co-defendant drove by in a truck. Two bystanders were outside and their car was damaged in the shooting. Wright also sold firearms with and to fellow gang members who were prohibited from possessing the firearms. Wright has agreed to be sentenced to 18 years in prison at his sentencing scheduled for January 16, 2015.
Mr. Rosenstein commended the ATF, Howard County Police Department, Baltimore Police Department and Howard County State’s Attorney’s Office for their work in this investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorneys Rachel M. Yasser and Sandra Wilkinson, who prosecuted the case.Aurora Return Preparer Sentenced for Filing False Tax ReturnsRead the Press Release
DENVER – Keith G. Smith, age 54, of Aurora, Colorado, was sentenced earlier this week to serve 9 months in federal prison by U.S. District Court Judge Raymond P. Moore for filing and assisting in preparing false tax returns, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. In addition, Judge Moore ordered Smith to pay $128,893.87 in restitution to the IRS. Smith was ordered by Judge Moore to report to authorities by 3:00 p.m. on the day of sentencing.
Smith was indicted by a federal grand jury in Denver on March 11, 2014. He pled guilty before Judge Moore on September 16, 2014. He was sentenced on Tuesday, December 9, 2014.
According to information contained in the indictment and plea agreement, beginning in 1987, Smith operated a tax return preparation business. He told some of his clients that he formerly worked for the IRS and conducted audits, seized assets, and carried a weapon. When in fact, for about four years Smith worked in an administrative positon at the IRS; he was not a criminal investigator, he did not conduct audits, and he did not seize assets. In 2000, the IRS assessed Smith a civil penalty because of underreported tax liabilities on returns that he had prepared for clients. Smith thereafter continued to prepare clients' returns but no longer signed them as preparer, instead indicating on the returns that they were prepared by the taxpayers.
Among the returns that Smith prepared for the years 2006 through 2010 were 40 false tax returns requesting refunds, in amounts ranging from $715 to $7,124, all of which the IRS paid. Many of the returns falsely claimed deductions for medical and dental expenses, home mortgage interest payments, education expenses, and charitable contributions. The false statements on the 40 returns resulted in a total tax loss of $138,148. In addition, Smith falsified his personal income tax returns for years 2008 and 2009.
This case was investigated by Internal Revenue Service – Criminal Investigation. Smith was prosecuted by the Economic Crime Section of the Criminal Division of the Colorado U.S. Attorney’s Office.
- Alice Man Heads to Prison for Digging Graves While Receiving Social Security Disability
Alexandria Man Sentenced to 11 Years in Prison for Sex Trafficking of A ChildRead the Press Release
ALEXANDRIA, Va. – Tayron Tyree Weeks, 24, of Alexandria, was sentenced today to 132 months in prison, followed by 10 years of supervised release for sex trafficking of a child.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler, Jr., Chief of Police of the Fairfax County Police Department; and Earl L. Cook, Chief of Police of the Alexandria Police Department, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
Weeks pleaded guilty on September 18, 2014. According to court documents, Weeks met the victim at the Braddock Road Metro Station and then took her to a friend’s apartment in Alexandria, where Weeks engaged in sexual acts with the victim. Weeks then asked the victim if she was interested in earning money by selling her body, and Weeks encouraged her to do so. The victim told Weeks that she was only 14 years old, and Weeks responded “money is money,” and “you might as well get paid for something most girls do for free.” The victim eventually contacted police and an undercover detective, posing as a teenage girl, started conversing with Weeks about Weeks’s desire to prostitute the undercover detective.
Weeks informed a friend that he intended to prostitute some girls, and this man told Weeks that that would be “sex trafficking,” that sex trafficking was unlawful and immoral, and that this conduct would likely result in Weeks being imprisoned. Weeks responded that he did not think that the police would catch him.
This case was investigated by the FBI’s Washington Field Office, the Fairfax County Police Department, and the Alexandria Police Department. Assistant U.S. Attorney Michael J. Frank is prosecuting 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. 1:14-cr-313.
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Alexandria Man Sentenced for Failing to Pay Employment TaxesRead the Press Release
ALEXANDRIA, Va. – Nureni Abayomi Baruwa, 57, of Alexandria, was sentenced today to 12 months and one day in prison, followed by three years of supervised release for employment tax fraud. Baruwa was also ordered to pay $238,345.52 in restitution.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Larry J. Wszalek, Acting Deputy Assistant Attorney General for the Department of Justice Tax Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
According to the plea agreement and statement of facts, Baruwa operated a car detailing business called NAB International Group of Companies Inc. This business was incorporated by Baruwa in 1993 in the Commonwealth of Virginia and he served as the president. Baruwa was in charge of withholding employment taxes from his employees’ wages, paying over the withheld amount to the IRS and reporting these amounts to the IRS by filing quarterly employment tax returns.
According to court documents, in all but three quarters, beginning with the first quarter of 2003 through the last quarter of 2010, Baruwa failed to timely collect, account for and pay the IRS the taxes withheld from his employees’ paychecks, as well as the employer’s portion of the employment taxes. Furthermore, in all but five quarters during the same period, Baruwa failed to file NAB’s quarterly employment tax returns with the IRS in a timely manner. Additionally, since at least 2006, Baruwa has failed to file an individual income tax return in a timely manner, despite the fact that he was legally required to do so annually. According to court documents, the tax loss is between $200,000 and $400,000.
This case was investigated by IRS-Criminal Investigation. Assistant Chief Caryn Finley of the Department of Justice Tax Division, and Assistant U.S. Attorney Uzo Asonye 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. 1:12-cr-370.
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Albuquerque Man Pleads Guilty to Federal Armed Bank Robbery and Firearms ChargesRead the Press Release
ALBUQUERQUE – Jeremy Gabriel Trujillo, 35, of Albuquerque, N.M. pleaded guilty yesterday in federal court to an armed bank robbery charge and to brandishing a firearm during and in relation to a crime of violence.
Trujillo was arrested on July 28, 2014, on a criminal complaint charging him with robbing the Bank of Albuquerque branch on Wyoming Blvd. NE in Albuquerque, N.M. The criminal complaint alleged that Trujillo robbed the bank at gunpoint that day. On Aug. 26, 2014, Trujillo was indicted and charged with being a felon in possession of a firearm and ammunition; armed bank robbery; and brandishing a firearm during and in relation to a crime of violence. Court records reflect that in July 2014, Trujillo was prohibited from possessing firearms or ammunition because he previously had been convicted of at least two felony offenses.
During yesterday’s hearing, Trujillo entered guilty pleas to Counts 2 and 3 of the indictment charging him with armed bank robbery and brandishing a firearm during and in relation to a crime of violence. Trujillo admitted entering the Bank of Albuquerque branch and brandished a firearm in the direction of three bank tellers while demanding that they give him cash. After the bank tellers complied with his demands, Trujillo left the bank.
At sentencing, Trujillo faces a statutory maximum penalty of 25 years in prison for his armed bank robbery conviction. He also faces a minimum of seven years in prison for his firearms conviction which must be served consecutive to the sentence imposed for the armed bank robbery conviction. Under the terms of his plea agreement, Trujillo also must pay restitution for bank robberies committed on April 29, 2014 at the Bank of Albuquerque and on May 7, 2014 at the Wells Fargo Bank in Albuquerque.
Trujillo has been in federal custody since his arrest. He remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney David M. Walsh.
Thursday 11 December 2014
Wheeling, WV Woman Convicted of Selling Cocaine Near Local SchoolRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Krista Dennis, 28, of Wheeling, West Virginia, was convicted in federal court for selling crack cocaine near a local elementary school, United States Attorney William J. Ihlenfeld, II announced today.
An investigation by the Benwood, West Virginia Police Department, the Marshall County Drug and Violent Crime Task Force, and the Ohio Valley Drug and Violent Crime Task Force revealed that Dennis sold crack cocaine in July 2014 near Ritchie Elementary School in Wheeling, West Virginia. Both task forces are HIDTA-funded initiatives.
Dennis pled guilty to one count of “Distribution of Cocaine Base Near a Protected Location.” She faces up to 40 years in prison and a fine of up to $2,000,000.00. 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.
Assistant U.S. Attorney Robert McWilliams is prosecuting the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Wellsville Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Anthony R. Kidd, 54, of Wellsville, N.Y., who was convicted of conspiracy to manufacture, possess with intent to distribute and distribute, 50 grams or more of methamphetamine, was sentenced to 60 months in prison and ordered to pay $3,143 in restitution to the New York State Department of Environmental Conservation by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on January 26, 2012 law enforcement officers executed a search warrant at an apartment building on South Main St. in Wellsville. Officers discovered items used to manufacture methamphetamine as well as a quantity of finished methamphetamine. A subsequent search warrant executed at Kidd's apartment on Madison Avenue in Wellsville led to the discovery of an active methamphetamine laboratory. The court’s restitution amount was to repay the state for costs associated with the environmental clean-up of these laboratory sites.
The defendant was arrested along with April Patterson, Jason Patterson, John Faber and Justin McPherson. April Patterson was sentenced to 30 months in prison; Jason Patterson 151 months; John Faber 40 months; and Justin McPherson 24 months.
Today’s sentencing is the result of an investigation on the part of the New York State Police, under the direction of Major Michael Cerretto, the Wellsville Police Department, under the direction of Chief Timothy O’Grady, and the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division. Special assistance was provided by Allegany County District Attorney Keith Slep.
Wellpinit Man Sentenced to Prison for Sexual Assault and Firearms ViolationRead the Press Release
Spokane –Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Christopher James Carson, age 32, of Wellpinit, Washington, was sentenced on today after having previously pleaded guilty to Abusive Sexual Contact and Possession of a Firearm by a Prohibited Person. United States District Court Judge Thomas O. Rice sentenced Carson to a combined 70- month term of imprisonment, to be followed by five years of court supervision after he is released from Federal prison. Judge Rice ordered Carson to register as a sex offender.
According to information disclosed during court proceedings, on May 14, 2013, Carson, a guest at the victim’s house, snuck into her bedroom while she was asleep with her boyfriend and sexually assaulted her. During the investigation of that case, law enforcement learned that he had illegally possessed a firearm on two occasions after being previously convicted of a felony.
Michael C. Ormsby stated: "This case exemplified the strong working partnership between the Spokane Tribal Police Department and the FBI – they must be commended for the dedication and hard work demonstrated in this case. Sexual assaults will not be tolerated within any Indian reservation located in the Eastern District of Washington. The United States Attorney’s Office is and will continue to be committed to prosecute aggressively sexual assault and firearms violations that occur within this District, particularly any such assault or violation that occur within any of the four Indian reservations in eastern Washington.”
This investigation was conducted by Spokane Tribal Police Department and the Federal Bureau of Investigation. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-13-0150-TOR
CR-13-0151-TORVenezuelan Man Admits Making Threatening Calls to Newtown Residents After School Shooting TragedyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that WILFRIDO A. CARDENAS HOFFMAN, 31, of El Hatillo, Venezuela, waived his right to indictment and pleaded guilty today in Hartford federal court to making threatening phone calls to residents of Newtown, Connecticut, shortly after the Sandy Hook Elementary School shooting tragedy in December 2012.
According to court documents and statements made in court, on December 16, 2012, two days after the shooting that claimed 26 lives at Sandy Hook Elementary School in Newtown, CARDENAS HOFFMAN used a voice over IP application on an iPod to make numerous phone calls from his home in Venezuela to Newtown residences. In one of the telephone calls, HOFFMAN stated: “This is Adam Lanza. I’m gonna [expletive] kill you. You’re dead. You’re dead. You hear me? You’re dead.” In another phone call, HOFFMAN stated: “This is Adam Lanza. I’m gonna kill you. You’re dead. With my machine gun. You’re dead [expletive].”
The investigation revealed that CARDENAS HOFFMAN made more than 90 calls to approximately 47 telephone numbers of Newtown residences. Not all of the calls were successfully placed and answered.
“As we approach the second anniversary of this terrible event, we remember all of the victims whose lives were lost, and their family and friends who still struggle to manage their grief,” stated U.S. Attorney Daly. “These threatening calls, just two days after the tragedy, compounded the collective suffering of all of the citizens of Newtown and needlessly stressed law enforcement resources at a critical time. It is reprehensible criminal conduct. We are committed to investigating similar hoax crimes and prosecuting all who commit them, here and abroad.”
“Mr. Hoffman’s actions in the days after December 14, 2012, further victimized an already vulnerable community” stated FBI Special Agent in Charge Ferrick. “As a society we simply cannot tolerate this type of heinous behavior. Crimes like this will continue to be a priority of the FBI.”
CARDENAS HOFFMAN was charged by criminal complaint on May 20, 2013. The complaint remained sealed until CARDENAS HOFFMAN was arrested on June 21, 2014, in Miami as he transitioned through Miami International Airport en route to Mexico from Venezuela. He has been detained since his arrest.
The charge of making threatening telephone calls carries a maximum term of imprisonment of five years and a fine of up to $250,000. CARDENAS HOFFMAN is scheduled to be sentenced by U.S. District Judge Michael P. Shea on February 12, 2015.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Krishna Patel and Edward Chang.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Vallejo Man Found Guilty of Participating in Multi-year Bank Fraud and Identity Theft SchemeRead the Press Release
SACRAMENTO, Calif. — After a three–day trial, a jury today found Deshawn A. Ray, 42, of Vallejo, guilty of one count of conspiracy to commit bank fraud, two counts of bank fraud, and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced. The trial was held before Chief United States District Judge Morrison C. England Jr.
According to evidence presented at trial, from March 2008 until July 2010, Ray and his primary co-conspirator Reginald L. Thomas, conducted what was described as a multi-state “account takeover” scheme that targeted high-value accounts at several banks. Members of the conspiracy used the personal information of high-value account holders to open a joint account in the names of the high-value account holders and a co-conspirator. The defendants also changed the contact information for the high-value accounts so that the actual account holders would not receive notice of account activity. The defendants then transferred funds from the high-value accounts to the joint accounts and then to individual accounts held by a member of the conspiracy. Members of the conspiracy withdrew the proceeds of the fraudulent transfers in cash, cashiers’ checks or wire transfers before the transfers were noticed by the banks and reversed.
This case is the product of an investigation by the United States Secret Service, the Pinellas County (Florida) Sheriff’s Office, and the Walnut Creek (California) Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty are prosecuting the case.
After the verdict, Ray was taken into custody by the United States Marshals Service.
Ray is scheduled to be sentenced by Judge England on March 12, 2015. Ray faces a maximum statutory penalty of 30 years in prison and a $1 million fine on each of the bank fraud charges, and a mandatory two-year consecutive prison term for the conviction for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Co-defendant Damian Edgerson, 39, of Oakland, pleaded guilty to bank fraud and was sentenced to 18 months in prison. Reginald Thomas, 39, of Richmond, pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft and is scheduled to be sentenced on December 18, 2014. He faces a maximum statutory penalty of 30 years in prison, a $1 million fine, and a mandatory two-year consecutive sentence for aggravated identity theft. Tiffany Tung, 26, of Oakland pleaded guilty to accepting a bribe as a bank employee. Tung is scheduled for a status hearing on her sentencing on December 18, 2014. She faces a maximum statutory penalty of one year in prison and a $100,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Unlicensed Investment Advisor Sentenced to 64 Months in Ponzi SchemeRead the Press Release
A 37-year-old Brighton man was sentenced today in federal court to 64 months in prison for running a $3.8-million Ponzi scheme, United States Attorney Barbara L. McQuade announced.
Joining in the announcement was Paul M. Abbate, Special Agent in Charge of the Federal Bureau of Investigation.
U.S. District Judge Nancy G. Edmunds sentenced Sachin Uppal today, following his August guilty plea to wire fraud charges. According to court documents, Uppal ran the Jefferson Smith Trading Company LLC (“JSTCO”) from July 2007 through September 2013. Uppal, who was not a licensed investment advisor, marketed JSTCO to potential investors and solicited investor funds, describing it as a “hedge fund.” Uppal told investors that he was a “day trader,” who would use investor funds to buy and sell financial instruments within the same trading day, which he said would reduce risk to investors.
Several of Uppal’s victims were family friends. This phenomenon, known as ‘affinity fraud,’ often targets members of identifiable groups, such as a religious or ethnic communities or clubs. Judge Edmunds ordered Uppal to pay restitution to his victims in the amount of $3,867,187.
Uppal promised a return of 18 to 20 percent per year, with a minimum investment commitment of only 12 months. Once he secured the initial investment, Uppal emailed his victims false monthly “year-to-date investment summaries” to make them believe that their accounts were performing well, and to persuade them to invest additional funds. Sometimes, Uppal traded and lost funds during the relevant period. Other times, Uppal simply pocketed the money without conducting any trades at all. When investors asked to close their accounts and withdraw their investment funds, Uppal attempted to lull them with various excuses.
"Some people use guns to steal money. Other people use lies," McQuade said. "Investors should not be lulled into trusting an investment advisor just because they know him or because he is a fellow member of an organization to which they belong. Criminals take advantage of those relationships as cover to commit fraud."
“Mr. Uppal took advantage of trusting relationships with family, friends, and associates, breached their confidence, and stole their money,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Criminals like this use every means of deceit available to further their selfish goals, and investors need to exercise great caution so as not to become victimized.”
Investors are encouraged to consult with the Financial Industry Regulatory Authority (FINRA) website (http://www.finra.org) and its BrokerCheck resource before investing.
The case was investigated by the FBI and prosecuted by Assistant United States Attorney Erin ShawU.S. Attorney Adds Resources to Combat Crime in Clarksburg AreaRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – In a continuing effort to bring enhanced law enforcement resources to the Clarksburg region, the U.S. Attorney’s Office for the Northern District of West Virginia recently welcomed a new federal prosecutor, United States Attorney William J. Ihlenfeld, II, announced today.
“We are excited to have Sarah Montoro join our office as an Assistant United States Attorney,” said Ihlenfeld. “She brings enthusiasm and experience to our team. She also has a particular passion and expertise in the area of domestic violence, having served on the Board of Directors of the Rape and Domestic Violence Information Center in Morgantown.”
“Hiring Sarah is just one component in a larger initiative to enhance law enforcement resources in the Clarksburg area,” noted Ihlenfeld. “We are actively pursuing additional resources to ensure safety and security in the region.” In September 2014, Harrison County, West Virginia was designated as a critical drug trafficking region as part of the Office of National Drug Control Policy’s High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA designation will bring significant federal resources to region, including additional support for the Greater Harrison County Drug and Violent Crime Task Force. In November 2014, Assistant Harrison County Prosecutor Shawn Adkins was designated as a Special Assistant United States Attorney.
Montoro graduated from West Virginia University with a Bachelor of Arts in English in 2003. She earned her JD in 2006 from the West Virginia University College of Law, where she served as Executive Research Editor for the West Virginia Law Review and President of the West Virginia Student Trial Lawyers Association. Prior to joining the United States Attorney's Office, Montoro served as an associate at Romano Law Office and Allan N. Karlin & Associates, both in Morgantown, West Virginia. She also served as a law clerk for Fourth Circuit Judge Robert B. King from August 2006 through August 2007.
Two Men Indicted for Illegal Firearms Possession in Incidents on Seattle’s Capitol HillRead the Press Release
Two men have been indicted for being felons in possession of firearms in two separate incidents in Seattle’s Capitol Hill neighborhood, announced Acting United States Attorney Annette L. Hayes. ROBEL SISAY GEBREMEDHIU, 31, and AWAD Y. AYNISHER, 30, both of Seattle were arrested in September and October 2014, as part of the Seattle Police Department’s emphasis patrols in response to community concerns about crime and safety. GEBREMEDHIU was arrested on September 27, 2014, after witnesses called 9-1-1 reporting a man running down Broadway with a gun. AYNISHER was arrested October 5, 2014, after a security guard alerted police to an impaired driver at a gas station on Broadway. AYNISHER had a loaded gun in his front seat and an Uzi type weapon in the trunk of his car. Both men are prohibited from possessing firearms because they each have prior federal felony convictions.
“Convicted felons armed with high powered firearms in busy city neighborhoods are a recipe for disaster,” said Acting U.S. Attorney Hayes. “I commend the Seattle Police Officers who worked quickly to protect the public and get these individuals off the streets safely.”
“I meet regularly with Capitol Hill residents and business owners and we’ve talked at length about their crime and quality of life issues,” said Seattle Police Chief Kathleen O’Toole. “These cases demonstrate that we’re listening carefully and working with our Federal partners to address their concerns.”
Both defendants recently served lengthy federal prison sentences and were on federal supervision at the time of their arrests. In the prior criminal cases, both defendants admitted distributing drugs as part of a gang known as the East African Posse (EAP). Both have been in federal custody for violating the terms of their court-ordered supervision and will be arraigned on these new indictments next week.
According to records filed in King County Superior Court, on September 27, 2014, two Seattle Police bike officers received a report of a man with a gun running south on Broadway just as various clubs and bars were emptying out for the night. The officers saw a man in clothes matching the suspect’s description in a parking lot, standing behind a truck. As the officers approached, GEBREMEDHIU dropped what was later identified as a loaded .40 caliber Glock firearm. GEBREMEDHIU was taken into custody for being a felon in possession of a firearm.
One week later, on October 5, 2014, police officers were monitoring the late night crowd at a gas station on Broadway when a security guard alerted them to a driver who had pulled into the parking lot in a reckless manner. The officers observed that the driver appeared to have difficulty standing. When the driver, AYNISHER, returned to his car, he backed up, hitting another car in the lot. Officers asked AYNISHER to get out of the car, screened him, and arrested him for driving under the influence. The car was impounded and officers saw in plain view a loaded semi-automatic 9mm handgun on the floor of the driver’s seat. The officers obtained a warrant, searched the car and found a second firearm – a Cobray M-11 9mm semi-automatic (Uzi type) pistol -- in the trunk.
The statutory penalty for being a felon in possession of a firearm is ten years in prison. Additional penalties are available to the court for those on supervised release at the time of the new charge.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Andrew Friedman.
Two Convicted for Role in Manufacturing MethamphetamineRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – Two West Virginia residents were convicted in federal court for their role in producing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced today.
Krystal Eileen Sisler, 27, of Bartow, West Virginia, pled guilty to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.” She faces up to 20 years in prison and fine of up to $250,000.00. An investigation by the Mountain Region Drug and Violent Crime Task Force, the United States Forest Service, the Pocahontas County Sheriff's Office, and the West Virginia State Police revealed that in July 2014, Sisler purchased medications containing pseudoephedrine to be used in manufacturing methamphetamine.
Jamie Nicole Chidester, 26, of Buckhannon, West Virginia, pled guilty to one count of “Possession of Material used in the Manufacturing of Methamphetamine – Aiding and Abetting.” She faces up to ten years in prison and fine of up to $250,000.00. During an investigation by the Randolph and Upshur County Sheriff’s Offices and the Buckhannon Police Department, Chidester was discovered in March 2013 in possession of various materials used in the production of methamphetamine, including coffee filters, lithium batteries, airline tubing air pup, instant cold packs, started fluid, lighter fluid salt, drain cleaner, plastic bottles, a pill crusher, and glass and plastic bottles.
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.
Assistant U.S. Attorney Steven Warner is prosecuting the cases on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Two Chinese Nationals Sentenced for Trafficking Counterfeit Cell Phone CasesRead the Press Release
Boston – Two Chinese nationals, living in Massachusetts, were sentenced today in federal court for importing and reselling counterfeit cases for cell phones.
U.S. District Court Judge F. Dennis Saylor, IV, sentenced Zexiong Chen, 28, to 18 months in prison, one year of supervised release, a fine of $6,000 and restitution in the amount of $4,820. Haotian Chen, 26, was sentenced to time served which was one day in prison, one year of supervised release, a fine of $4,000 and restitution in the amount of $4,829. In September 2014, the defendants pleaded guilty to trafficking in counterfeit goods. In February 2014, Zexiong Chen was arrested at JFK International Airport as he prepared to board a plane to China. He has been in custody since then. Haotian Chen was also arrested in February 2014 and was released by the Court on conditions.
In February 2013, the defendants incorporated Max Wireless Group, Inc. as a vehicle for importing and reselling cell phone cases, many of which were counterfeit. Through Max Wireless, the defendants imported counterfeit cell phone cases from China, sold a small percentage of them through their Wakefield store, and sold the vast majority of them to individuals and companies who resold them at retail locations. Many of these retail locations were kiosks in shopping malls, some of which were in Massachusetts.
On 12 occasions from November 2012 through August 2013, U.S. Customs and Border Patrol officials inspected shipments the defendants imported from China to the United States and determined that these shipments contained counterfeit items. These 12 seizures included more than 10,000 counterfeit cell phone cases, bearing marks of manufacturers including: OtterBox, Speck, Kate Spade, Hello Kitty, Ferrari and LifeProof. On Sept. 4, 2013, federal agents searched the Max Wireless store and found more than 2,500 counterfeit cell phone cases and accessories.
The total of the retail price for the authentic versions of all of the products seized totaled more than $350,000. The defendants paid far less for the counterfeit cases and typically resold the cases for substantially less than the suggested retail price.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. The case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Adam Bookbinder, Chief of Ortiz’s Cyber Crime Unit.
- Three Huntsville Men Charged with Distributing PCP
The Regents of the University of California to Pay Half a Million Dollars to Resolve Allegations of False Statements in Obtaining UC Davis Grant FundingRead the Press Release
SACRAMENTO, Calif. — The Regents of the University of California agreed to pay the United States $499,700 to resolve civil allegations under the False Claims Act that the University of California at Davis submitted false and misleading statements in connection with obtaining grants from the Department of Energy (DOE) and the National Science Foundation (NSF), United States Attorney Benjamin B. Wagner announced today.
This settlement resolves claims that U.C. Davis: (1) failed to disclose the duplicative and overlapping nature of the university’s research associated with a DOE grant, an NSF grant, and a previous federal grant; (2) failed to accurately describe the research that had been funded by the NSF grant and the previous federal grant; (3) failed to disclose that the NSF grant and the previous federal grant were funding or had funded certain specific research tasks being funded with DOE grant monies; and (4) in progress reports and renewal applications submitted to the DOE, listed accomplishments achieved under the NSF grant and the previous federal grant, along with reporting accomplishments achieved under the DOE grant. The United States contends that these false and misleading statements caused the DOE and NSF to approve duplicative grant funding that these agencies would not have otherwise been awarded.
As part of the settlement, U.C. Davis has also agreed to take steps to prevent these events from reoccurring by supplementing its current research training program for undergraduate, graduate, and post-doctorate students with an hour-long module covering time and effort reporting, reasonableness of costs and other aspects of federal grants for a three-year period beginning in January.
“This settlement sends a clear message that recipients of federally funded grants must strictly adhere to the regulations applicable to those grants and fully and fairly disclose the information called for under these grants,” stated Benjamin B. Wagner, United States Attorney for the Eastern District of California. “Recipients who fail to do so risk significant financial consequences.”
"The Department of Energy aims to fund innovative and transformative scientific research, but not research simultaneously funded by other Federal agencies,” said Gregory H. Friedman, Inspector General, U.S. Department of Energy. “This civil settlement should help deter such misconduct. Our Special Agents will tirelessly investigate any allegations of abuse that affect the integrity of the grant underwriting process."
“When more than one federal agency funds the same research, the integrity of the grant making process is undermined and scarce research dollars are diverted from other potentially valuable innovation,” said Allison Lerner, Inspector General, National Science Foundation. “This settlement agreement sends a strong signal that failure to disclose duplicative funding will not be tolerated.”
This case was the result of an investigation by the DOE Office of the Inspector General, and the NSF Office of the Inspector General, along with the United States Attorney’s Office for the Eastern District of California. Assistant United States Attorney Catherine Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Tampa Man Sentenced for Credit Card FraudRead the Press Release
Tampa, Florida – United States District Judge Susan C. Bucklew has sentenced Noel Perez Partagas (22, Tampa) to three years and three months in federal prison for access device fraud and identity theft. The Court also ordered him to pay more than $46,000 in restitution, and entered a forfeiture money judgment of nearly $24,000, representing the proceeds of the charged criminal conduct.
According to court documents, Partagas used stolen credit and debit account numbers that had been transformed into counterfeit or cloned credit cards. He purchased large quantities of fuel and tires, among other things, that could later be sold for cash. The true owners of these accounts remained in possession of the cards and did not know that their information had been stolen.
Partagas was arrested in July 2013, after he used a fraudulent credit card to purchase $100 of diesel fuel at a gas station in Polk County. At the time of his arrest, he was driving a pickup truck with a large custom “bladder tank” in the bed, used to hold large quantities of fuel. Partagas had in his possession 69 credit cards and 20 gift cards, most of which had been re-encoded. Further investigation revealed that he had used the fraudulent cards to purchase nearly $42,000 worth of tires from two tire retailers in the Lakeland area in May 2013.
The credit card companies suffered losses of more than $46,000 in this case, with potential losses totaling nearly $350,000.
This case was investigated by the United States Secret Service, the Polk County Sheriff’s Office, the Tampa Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Supplier of “Molly” That Resulted in A Death at Electric Zoo Concert Pleads Guilty in Manhattan Federal Court to Narcotics Conspiracy ChargeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that PATRICK MORGAN pled guilty today to conspiring to distribute narcotics. MORGAN, who was arrested in July 2014, pled guilty before United States District Judge Edgardo Ramos.
Manhattan U.S. Attorney Preet Bharara said: “With today’s guilty plea, Patrick Morgan now stands convicted of conspiring to distribute the drug Molly, which led to the tragic death of Jeffery Russ. This Office remains committed to aggressively pursuing and prosecuting those who peddle this extremely dangerous drug.”
According to the Indictment, the underlying criminal Complaint, and statements made during court proceedings:
In early August 2013, PATRICK MORGAN sold pills commonly called “Molly,” which contained 3,4-methylenedioxymethamphetamine (“MDMA” or “ecstasy”) and 3,4-methylenedioxy-N-methylcathinone (“methylone”), to three individuals (the “Three Individuals”), including Jeffrey Russ, for their use at an electronic dance music concert in Buffalo, New York.
In mid-August 2013, the Three Individuals pooled their money in order to buy additional Molly pills from MORGAN. The Three Individuals intended to consume and distribute these Molly pills at the Electric Zoo music festival. Electric Zoo was a three-day, outdoor electronic dance music festival on Randall’s Island, New York, scheduled to be held from August 30, 2013, through September 1, 2013. Attendance at Electric Zoo was estimated to be over 130,000 people.
In mid-August 2013, MORGAN sold one of the Three Individuals approximately 80 Molly pills that MORGAN understood the Three Individuals intended to consume and distribute at Electric Zoo.
On August 30, 2013, the Three Individuals, including Jeffrey Russ, attended Electric Zoo and consumed some of the Molly pills that were purchased from MORGAN. Toward the end of the concert on August 30, 2013, Russ collapsed and had a seizure. Russ was treated by emergency medical technicians on Randall’s Island and ultimately taken to Harlem Hospital. When Russ arrived at Harlem Hospital, he was unresponsive. On August 31, 2013, at approximately 3:21 a.m., Russ died at Harlem Hospital from acute intoxication by the combined effect of MDMA and methylone with hyperthermia.
MORGAN, 24, of Buffalo, New York, pled guilty to conspiring to distribute narcotics, which carries a maximum term of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. MORGAN is scheduled to be sentenced on March 13, 2015, at 10:30 a.m., by Judge Ramos.
Mr. Bharara praised the investigative work of the Drug Enforcement Administration.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorney Joshua A. Naftalis is in charge of the prosecution.
Stockton Man Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
SACRAMENTO, Calif. —Cedric Sewell, 51, of Stockton, pleaded guilty today to possession with intent to distribute heroin, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking offense, and being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on March 5, 2014, law enforcement officers conducted a probation search of Cedric Sewell’s residence in Stockton. Agents found a .38‑caliber revolver that was fully loaded with live rounds. The kitchen had been converted to a heroin manufacturing operation, including strainers, digital scales, cutting agents, and hundreds of baggies. Agents also found five kilograms of heroin, 500 grams of cocaine, a money counter, and other items used in drug manufacturing and distribution. Several other firearms (including an AR-15 assault rifle), a cache of ammunition, and approximately $67,000 was also found.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Alameda County Narcotics Taskforce, the San Bernardino Probation Department, and the San Joaquin District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
Sewell is scheduled to be sentenced by United States District Judge Troy L. Nunley on April 30, 2015. Sewell faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Steven Mandell Sentenced to Life in Prison for Barbaric 2012 Plot to Kidnap, Extort and Kill Victim in North Side Torture ChamberRead the Press Release
CHICAGO — A northwest suburban man was sentenced today to life in prison for plotting in 2012 to kidnap, torture, extort and murder an innocent victim and then take control of the victim’s real estate holdings. STEVEN MANDELL, 64, formerly known as “Steven Manning,” of Buffalo Grove, was tried in February of this year and convicted of conspiracy to commit kidnapping, extortion conspiracy, attempted extortion, possessing a firearm during a violent crime, being a felon-in-possession of a firearm, and obstruction of justice.
“This was an extremely serious and disturbing offense,” U.S. District Judge Amy J. St. Eve said in imposing the life term following a hearing in Federal Court. “Your actions in this case, Mr. Mandell, were evil . . . and showed a complete disregard for human life.”
The judge also imposed a mandatory consecutive five-year sentence for use of a firearm and a $5,000 fine. Mandell has been in custody since he was arrested in October 2012 and there is no parole in the federal prison system.
“Mr. Mandell was the mastermind of a truly barbaric crime,” Assistant U.S. Attorney Amerjeet Bhachu said in court today. Mandell “was the principal author of an exceptionally sadistic and depraved plan to kidnap, torture, extort and murder,” Mr. Bhachu and Assistant U.S. Attorney Diane MacArthur argued in a sentencing memo.
Mandell, a Chicago police officer for approximately 10 years until 1983, served more than a decade on Illinois’ death-row for a murder conviction that was later overturned on legal grounds involving the admissibility of evidence at his trial, not because of innocence.
A co-defendant in the 2012 murder plot, Gary Engel, who was 61 at the time, of Homer Glen and a former police officer in Willow Springs, committed suicide shortly after he was arrested with Mandell.
The evidence at trial showed that Mandell rented a location in the 5300 block of West Devon Avenue, known to him as “Club Med,” not knowing at the time that the FBI had installed a hidden camera and recording equipment after a cooperating witness reported Mandell’s plan. Mandell and Engel outfitted the rental location to restrain, torture and kill the victim. They developed a plan to lure him from his residence; stocked “Club Med” with all the tools they needed to carry out the crimes; and obtained all the trappings they needed to pose as police officers in connection with the victim’s abduction.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
St. Peters Man Pleads Guilty to Bank FraudRead the Press Release
St. Louis, MO – MARK AVALOS pled guilty to bank fraud charges relating to his work as the Controller for The Mortgage Store, Inc. (TMS) in 2008.
According to court documents, TMS was a major mortgage brokering business with offices in four states and hundreds of employees. The main offices were in Westport Plaza and Wentzville. The businesses were operating at a financial deficit in 2008. There were not sufficient funds available to fund the disbursements from TMS and, in addition, to meet all of the expenses incurred by TMS. In order to meet certain expenses and, at the same time, conceal the absence of adequate funds, Avalos and others at TMS caused insufficient funds checks drawn on the checking accounts of both TMS and Title America to be deposited between those accounts in such a way that the “float” concealed the true balances of each account. The accounts were at Enterprise Bank in Clayton and at the First Bank of the Lake in Osage Beach, Missouri. The TMS account had a negative balance of approximately $850,000 in June, 2008, when the banks stopped accepting the floated checks. TMS went out of business shortly thereafter.Avalos, St. Peters, Missouri, pled guilty to one felony count of bank fraud before United States District Judge Henry E. Autrey. Sentencing has been set for March 16, 2015.
He now faces a maximum penalty of 30 years in prison and/or fines up to $1 million. (Although court documents show that the parties are requesting a lesser sentence due, in part, to Avalos’ cooperation in the investigation.) In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Jason Rauschelbach and John York, the owners of TMS, pled guilty earlier this year to charges stemming from the TMS business. Rauschelbach is presently serving a 24-month prison sentence following that guilty plea and York is scheduled to be sentenced on February 2, 2015.
This case was investigated by the FBI, IRS Criminal Investigation and the Inspector General Offices of HUD and the Department of Labor, as well as the Postal Inspection Service. Assistant United States Attorney James E. Crowe, Jr., is handling the case for the U.S. Attorney's Office.
Six People Indicted for Conspiracy that Brought Heroin from Georgia to YoungstownRead the Press Release
A 51-count indictment charging six individuals with drug trafficking crimes was unsealed this week, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Joseph P. Reagan, Special Agent in Charge of the Drug Enforcement Administration's Detroit office..
Indicted are: Vincent D. Moorer, 31, of Lithonia, Ga.; Melvin Johnson, 30, of Youngstown; Keyonia Moorer, of Akron; John Angelo Smith, 34, of Youngstown; Charity Cousin, of Warren, and Jabbar Spires, 37, of Youngstown.
They are accused of knowingly conspiring to possess with the intent to distribute and to distribute heroin between 2013 and November 2014.
Vincent Moorer supplied heroin to Johnson for distribution in the Youngstown area. Johnson then supplied heroin to Spires and Smith distribution in Youngstown, according to the indictment
Cousin helped Vincent Moorer transport heroin from Georgia to Ohio, according to the indictment.
Vincent Moorer and Johnson also possessed firearms to protect themselves and their drug proceeds. On September 29, 2014, Vincent Mooerer possessed a firearm in furtherance of a drug trafficking crime, according to the indictment.
The indictment further alleges that on or about November 4, 2014, Moorer, possessed a Glock, model 27, .40 caliber pistol, and 15 rounds of ammunition, after having been previously convicted of felonious assault, in the Mahoning County, Ohio, Court of Common Pleas.
The indictment further alleges that on or about November 4, 2014, Johnson possessed a Smith & Wesson, model SW40VE, .40 caliber pistol; a Glock, model 27, .40 caliber pistol; and 29 rounds of ammunition, after having been previously convicted of being a felon in possession of a firearm, in the U.S. District Court, Northern District of Ohio, and felonious assault, in the Mahoning County, Ohio, Court of Common Pleas.
Moorer, Cousin, Johnson and Keyonia Moorer also conspired and intentionally conducted a series of financial transactions, which transactions involved money from drug proceeds, knowing that the transactions were designed to conceal the nature, location, source, ownership or control of the drug trafficking proceeds, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Several Members of Million Dollar Tax Fraud Ring Sentenced to Federal Prison, U.S. Attorney AnnouncesRead the Press Release
Memphis, Tenn. – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, announced today that members of a large tax fraud ring were recently sentenced in federal court. Melissa Harris, 35, of Memphis, was sentenced to 102 months in federal prison. Erin Crutcher, 28, of Memphis, was sentenced to 48 months. Breunca Sutton, 29, of Memphis, was sentenced to 45 months. Angela Jacocks, 40; Vivian Sholar, 35; and Jennifer Freeman, 38; all of Memphis, have pled guilty and await sentencing. All had been charged in a 41-count federal indictment for stealing government funds through the filing of false income tax returns and identity theft.
According to the facts presented in the indictment and revealed during sentencing, between August 6, 2010, and July 27, 2011, Harris, Crutcher, and other individuals unlawfully obtained personal identifying information of victims, including high school students, and used this information to electronically file false federal income tax returns claiming refund amounts. Harris paid a juvenile to steal rosters containing students’ personal information from Memphis high schools. Using this information, Harris and Crutcher filed over 800 false returns and directed over $1.3 million of the generated refunds into the bank accounts of Jacocks, Sutton, Freeman, and Sholar. All of the conspirators received part of the refunds for their personal benefit and use.
All were ordered to pay restitution to the IRS ranging from $332,000 to $1.1 million.
“Because of their brazen criminal scheme, these individuals now face lengthy prison sentences and orders to pay back up to $1.1 million,” stated U.S. Attorney Stanton. “We will continue to work with the IRS to pursue, prosecute, and bring to justice those who steal from honest American taxpayers.”
The investigation was conducted by the United States Secret Service, IRS-Criminal Investigative Division, and Memphis Police Department. Assistant United States Attorney Stephen Hall represented the government.
Russian Citizen Sentenced to Federal Prison for Illegally Exporting Firearm Parts to RussiaRead the Press Release
Savannah, GA: Viacheslav Zhukov, 33, a Russian citizen and lawful permanent resident of the United States, was sentenced last week by United States District Court Judge William T. Moore, Jr. to 51 months in federal prison for his role in illegally exporting firearm accessories from Savannah, Georgia to co-conspirators in Russia.
According to evidence presented during the guilty plea and sentencing hearings, Zhukov mailed multiple packages containing firearm magnifier scopes to Russia without obtaining an export license from the United States Department of Commerce. Various firearm magnifier scopes are controlled under the Export Administration Regulations for crime control purposes and require a license from the United States Department of Commerce to export to Russia. In an attempt to conceal his crimes, Zhukov misrepresented the contents of packages he mailed to Russia on United States Postal Service Customs Declaration forms.
United States Attorney Edward J. Tarver said, “Our export laws are critical in protecting the national security of the United States. I am proud that our law enforcement community quickly investigated Zhukov and successfully seized many of these packages before they ended up in the wrong hands. We will continue to work with our law enforcement partners to enforce national security laws for the safety of all Americans.”
“We are committed to working with our law enforcement partners to dismantle and disrupt any illicit scheme involving the illegal exportation of weapons and related material, including in this case sensitive firearms accessories intended for Russia,” said Special Agent in Charge Brock D. Nicholson of HSI Atlanta, who oversees the agency’s criminal investigations in Georgia and the Carolinas. “This case is a perfect example of the great work being done by our Border Enforcement Security Task Force in Savannah.”
“U. S. Customs & Border Protection, through a harmonized multi-agency effort with Homeland Security Investigations and as part of the Savannah Border Enforcement Task Force, has been successful in preventing the illegal export of weapon accessories to Russia. Today’s sentence is the best evidence of an already successful partnership in our shared areas of interest,” said Lisa Beth Brown, U. S. Customs & Border Protection Area Port Director in Savannah, Georgia.
Savannah-Chatham Metropolitan Police Department Assistant Chief Julie Tolbert, who was acting Chief at the time of arrest, pointed to the arrest by a Metro detective assigned to the Department of Homeland Security and the assistance of Metro SWAT officers as positive signs that the department is working with all agencies to protect the public. “Nothing good could come from a foreign visitor purchasing parts to weapons in Savannah and sending them to other parts of the world,” she said. “Through our association with Homeland Security, we were able to curtail a dangerous situation. I applaud our officers and the federal agents who facilitated this investigation and arrest.”
The investigation of this case was led by HSI, with assistance from U. S. Customs & Border Protection, U. S. Postal Inspection Service, and Savannah-Chatham Metropolitan Police Department. Assistant United States Attorneys Tania Groover and Charlie Bourne prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Romanian Man Sentenced to Prison for Role in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
A Romanian man was sentenced today to serve 63 months in prison for his role in receiving and sending overseas approximately $690,000 in proceeds from an international fraud scheme involving online marketplace websites, as well as for the use of a fraudulent passport.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David Rivera of the Middle District of Tennessee and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida made the announcement. U.S. District Judge Darrin P. Gayles of the Southern District of Florida imposed the sentence.
Razvan Caprarescu, 39, originally of Bucharest, Romania, was indicted in the Middle District of Tennessee in March 2014 for conspiracy to commit bank and wire fraud in connection with his participation in the online marketplace scheme. In June 2014, the case was transferred to the Southern District of Florida, where Caprarescu had already been indicted in March 2013 for use and attempted use of a false, forged, and counterfeit Belgian passport. Caprarescu pleaded guilty to both charges in August 2014. In addition to his prison term, Caprarescu was ordered to pay $658,441 in restitution.
In connection with his guilty plea, Caprarescu admitted that his co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, the co-conspirators responded with emails directing the victims to wire payments to specified bank accounts. These bank accounts were opened by Caprarescu and another co-conspirator using false identities and fraudulent documents, including counterfeit passports. Eighteen victims sent approximately $367,036 to accounts opened by Caprarescu between October 2011 and June 2012. Another 17 victims sent approximately $321,389 to accounts opened by Caprarescu’s co-conspirator. Caprarescu and his co-conspirator subsequently sent the bulk of the money to co-conspirators located overseas. Caprarescu also admitted that he used a false Belgian passport bearing an alias to rent a mailbox at a U.S. Pak-n-Ship store located in Broward County, Florida.
The cases were investigated by Immigration and Customs Enforcement’s Homeland Security Investigations, the FBI, and the Tennessee Bureau of Investigation. The cases were prosecuted by Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Assistant U.S. Attorney Alicia Shick of the Southern District of Florida.
Romanian Man Sentenced to Prison for Role in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
A Romanian man was sentenced today to serve 63 months in prison for his role in receiving and sending overseas approximately $690,000 in proceeds from an international fraud scheme involving online marketplace websites, as well as for the use of a fraudulent passport.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee made the announcement. U.S. District Judge Darrin P. Gayles of the Southern District of Florida imposed the sentence.
Razvan Caprarescu, 39, originally of Bucharest, Romania, was indicted in the Middle District of Tennessee in March 2014 for conspiracy to commit bank and wire fraud in connection with his participation in the online marketplace scheme. In June 2014, the case was transferred to the Southern District of Florida, where Caprarescu had already been indicted in March 2013 for use and attempted use of a false, forged, and counterfeit Belgian passport. Caprarescu pleaded guilty to both charges in August 2014. In addition to his prison term, Caprarescu was ordered to pay $658,441 in restitution.
In connection with his guilty plea, Caprarescu admitted that his co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, the co-conspirators responded with emails directing the victims to wire payments to specified bank accounts. These bank accounts were opened by Caprarescu and another co-conspirator using false identities and fraudulent documents, including counterfeit passports. Eighteen victims sent approximately $367,036 to accounts opened by Caprarescu between October 2011 and June 2012. Another 17 victims sent approximately $321,389 to accounts opened by Caprarescu’s co-conspirator. Caprarescu and his co-conspirator subsequently sent the bulk of the money to co-conspirators located overseas. Caprarescu also admitted that he used a false Belgian passport bearing an alias to rent a mailbox at a U.S. Pak-n-Ship store located in Broward County, Florida.
The cases were investigated by Immigration and Customs Enforcement’s Homeland Security Investigations, the FBI, and the Tennessee Bureau of Investigation. The cases were prosecuted by Assistant U.S. Attorney Alicia Shick of the Southern District of Florida, Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee.
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.
Rockwood Man Pleads Guilty to Tax Evasion and Illegally Selling Lobster ChargesRead the Press Release
Contacts: Julia M. Lipez, Richard W. Murphy
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Robert Thompson, 53, of Rockwood, Maine pleaded guilty today in U.S. District Court to
federal income tax evasion and illegally selling lobster charges.Court records reveal that between 2008 and 2011, Thompson was the dock manager for
the Spruce Head Fisherman’s Co-op in South Thomaston, Maine. In that capacity, Thompson
illegally bought lobsters from Co-op members for cash, rather than buying and selling those
lobsters through the Co-op system. Thompson resold the lobsters he bought for cash to J.P.’s
Shellfish, a seafood distributor in Eliot, Maine. Thompson was not a licensed seafood dealer,
making the sales to J.P.’s Shellfish illegal under Maine law. Under the federal Lacey Act, it is
illegal to sell lobsters in violation of state law. Thompson also failed to report his profit from
these side deals as income on his federal income tax return thus evading over $49,000 in income
taxes.Thompson faces up to one year in prison and a $100,000 fine on the Lacey Act charge
and up to five years in prison and a $250,000 fine on the tax evasion charge. He will be
sentenced after the completion of a presentence investigation report by the U.S. Probation Office.The charges are the result of a collaborative investigation conducted by the Internal
Revenue Service; the National Oceanic and Atmospheric Administration, Office of Law
Enforcement; and the Knox County Sheriff’s Office.Rochester Woman Pleads Guilty to Mail FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Aysha Humayun of Rochester, NY, pleaded guilty to conspiring to commit a fraud upon Intuit, Inc. through the use of the United States mail, and making false statements on tax returns before U.S. District Judge Frank P. Geraci. The mail fraud conspiracy charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both, and the tax charge carries a maximum penalty of three years in prison, a fine if $250,000, or both.
Assistant U.S. Attorney Bradley E. Tyler, who is handling the case, stated that between November 10, 2009, and June 10, 2011, Humayun, a/k/a Aysha Hussain, contacted Intuit, Inc., including by telephone, to place orders for free replacement software discs. The defendant falsely claimed that the software that had been previously purchased had been lost, stolen or damaged. As a result of the requests, Intuit, Inc. mailed free software discs to Humayun, and others, at addresses in Rochester and Gaithersburg, Maryland. After obtaining the free discs, the defendant advertised the software for sale eBay. Customers purchased the software and submitted payment electronically to the defendant via PayPal, a service facilitating online financial transactions.
Aysha Humayun was arrested along with her husband Humayun Farid. Charges are still pending against Farid. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
On October 15, 2012, Humayun filed a federal income tax return for 2011 which falsely reported $42,159 in profit or loss from a business. However, in truth and in fact, and as the defendant knew, Humayun’s total income was greater than that reported on the return.
The plea is the culmination of an investigation on the part of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, the Federal Bureau of Investigation, and the United States Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski.
Sentencing is scheduled for March 6, 2015, at 9:30 a.m. before Judge Geraci.
Return Preparer Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Victorio Rosier, 37, of Haiti, pled guilty today to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Rosier incorporated his company, Rosier’s Enterprise Corporation, and submitted applications for an Electronic Filing Identification Number (EFIN) and Preparer Tax Identification Number (PTIN) to file tax returns electronically with the IRS. Rosier obtained, without authorization, personal identifying information (PII) of various individuals, including their names, dates of birth, social security numbers and addresses, for the purpose of filing fraudulent income tax returns claiming tax refunds in those individuals’ names. Rosier or his co-conspirators printed out the refund checks, which his co-conspirators cashed. The checks contained the refund amount minus all applicable tax preparation and bank fees. Rosier charged exorbitant fees for the preparation of these fraudulent tax returns so that he could take away a larger percentage of the fraudulent tax refund for himself.
From February 2011 through March 2011, Rosier requested approximately $250,686 in fraudulent refunds. The number of victims involved is greater than fifty, but fewer than two-hundred fifty.
Sentencing is scheduled for January 23, 2015. At sentencing, Rosier faces up to 20 years in prison for the conspiracy charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Ravenna Man Charged with Making False Statement in Firearm PurchaseRead the Press Release
A federal grand jury returned a one-count indictment charging Jeremy P. Barnette, age 28, of Ravenna, Ohio, with making a false statement to a federally licensed firearms dealer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about March 27, 2014, Barnette, in connection with the acquisition of the following firearms: a Norinco, Model 84S-1, 5.56x45 rifle; a Ruger, Model 03800, 45 ACP pistol; and a Glock, Model 19, 9mm pistol, from Ohio Trading, 8855 State Street, NE, Louisville, Ohio, stated on the Firearm Transaction Report that he was purchasing the firearms for himself, when he was, in fact, purchasing the firearms for another individual who was a convicted felon.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Portland Man Sentenced to over Eight Years for Bank RobberyRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Matthieu O’Rourke, a/k/a “Tony Angeless,” age 36, of Portland, was sentenced today in U.S.
District Court by Judge D. Brock Hornby to 100 months in prison and three years of supervised
release for bank robbery. O’Rourke pleaded guilty on June 11, 2014.According to court records, on September 27, 2014, O’Rourke entered a Key Bank
branch located in Portland wearing a bright construction vest, sunglasses, a hat and carrying a
hard hat. He walked to a teller window and presented a note stating, in substance: “I’m a crazy
person. No one will be hurt as long as you give me the money out of both drawers.” The teller
complied and gave O’Rourke about $1,280. On October 30, 2013, O’Rourke was arrested in
Rivera Beach, Florida.At the sentencing hearing, O’Rourke was subject to an enhanced sentence as a career
offender. His prior convictions included a 1998 conviction for solicitation to commit murder for
which he was sentenced to eight years in prison.This case was investigated by the Portland Police Department, the Federal Bureau of
Investigation and the United States Marshals Service.Philadelphia Man Gets 46 Month Prison Sentence for Tax FraudRead the Press Release
PHILADELPHIA – Victor Thach, 47, of Philadelphia, was sentenced today to 46 months in prison and ordered to pay $1,337,000 in restitution to the IRS, arising out of his scheme to evade payroll and other taxes. Between 2007 and 2009, Thach operated a 250-person labor leasing agency that supplied temporary workers (including many illegal aliens) to local mail-sorting facilities. During this time period Thach’s clients paid him more than $9.8 million for the labor he provided. Thach, in turn, paid his employees in cash and “under the table,” that is, without issuing IRS Forms W-2 or deducting any payroll taxes. Despite having a multi-million dollar payroll, and despite that two accountants separately counseled him about his tax and reporting obligations during the years in question, Thach did not file a single tax return (corporate or individual).
Thach pleaded guilty to 16 tax-related offenses, including conspiracy to defraud the United States and failure to collect, account for, and pay over taxes.
By withholding federal income taxes and Social Security and Medicare taxes from the “under the table” wages, Thach caused a tax loss of at least $1,049,763. Thach also never accounted for or paid over to the IRS his employers’ matching share of the Social Security and Medicare taxes, totaling $454,996. Instead of paying the government, Thach spent tens of thousands of dollars gambling at high-end casinos in Atlantic City (including losing $100,460 at the Borgata Casino in 2007), purchased a $59,000 Mercedes Benz SUV, made regular payments toward a $60,000 Hummer, traveled repeatedly to Cambodia, and wired more than $180,000 to accounts he controlled in Cambodia.
In addition to the prison term and restitution, U.S. District Court Judge Anita Brody ordered three years of supervised release and a $1,600 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Department of Labor Office of Inspector General. It is being prosecuted by Assistant United States Attorney Kevin Brenner.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525