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30 January 2015
Harvey Woman Charged with Conspiracy to Steal Housing FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRENISE DEBOUE MURPHY, age 52, of New Orleans, was charged in a one-count Bill of Information with conspiracy to commit theft of government funds.
According to the Bill of Information, MURPHY submitted an application to receive housing assistance from the Jefferson Parish Housing Authority (“JPHA”) through the Housing Choice Voucher Program (“HCVP”). MURPHY listed her family composition as she, her son, and her daughter. The defendant did not include her husband, who owned the residence in which they lived, in her family composition. As a result of that representation, as well as yearly recertification paperwork she filed that indicated that she was unmarried and that hid the fact that her “landlord” was actually her husband, the JPHA provided housing assistance on behalf of MURPHY between September 2003 and September 2012 in the amount of approximately $68,593.
If convicted, MUPRHY faces a maximum term of imprisonment of 5 years, followed by up to 3 years of supervised release, and a $250,000 fine.
United States Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Department of Housing and Urban Development – Office of the Inspector General in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Gagliano and Gullo Plead Guilty to Federal Firearm ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSEPH F. GAGLIANO, age 55, and DOMINICK GULLO, age 72, both from Metairie, pled guilty today to federal firearm charges.
GAGLIANO pleaded guilty to being a convicted felon in possession of a loaded, Ruger model, .22 caliber scope-mounted rifle. GAGLIANO and GULLO both pleaded guilty to being in possession of an unregistered silencer that fit the .22 caliber rifle. The rifle and silencer, along with other evidence, was recovered from an older model Ford van occupied by both GAGLIANO and GULLO. A Jefferson Parish Sheriff’s Deputy stopped the van on May 7, 2014, after learning the van had a stolen license plate affixed to it. Subsequent investigation by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives along with Jefferson Parish Sheriff’s detectives revealed modifications to the van were made at GAGLIANO’s instruction.
GAGLIANO faces a maximum of 10 years imprisonment, followed by up to three years supervised release, and a maximum fine of $250,000 for being a convicted felon in possession of the rifle. GAGLIANO and GULLO each face a maximum of 10 years imprisonment, followed by up to three years supervised release, and a maximum fine of $10,000 for being in possession of the unregistered silencer. There is also a mandatory $100.00 special assessment for each count associated with this guilty plea.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office for their work investigating this matter. Assistant United States Attorneys William J. Quinlan, Jr. and Elizabeth Privitera are in charge of the prosecution.
Fortuna Resident Indicted for Loan Fraud and Identity TheftRead the Press Release
SAN FRANCISCO – A federal indictment charging Delores Reeves with three counts of mail fraud and two counts of aggravated identity theft was unsealed this afternoon in federal court, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Reeves, 59, was indicted by a federal grand jury on January 27, 2015. According to the Indictment, Reeves operated iServe Residential Lending, LLC. Through this business and in her personal capacity, Reeves acted as a broker for “hard money” real estate loans, where she would purportedly match borrowers who needed cash loans with lenders who wanted to invest in loans secured by real estate. The Indictment alleges that Reeves defrauded one of her lenders by falsely soliciting three loans that Reeves represented would go to three borrowers and would be secured by real property owned by those borrowers. According to the Indictment, those borrowers knew nothing of the loans, and Reeves used their personal information without their consent to create fraudulent loan documents that she sent to the lender to make the transaction appear legitimate. After the lender paid Reeves the money for the loans, Reeves fraudulently retained the money for herself.
Reeves was arrested and made her initial appearances in federal court today in Eureka before the Honorable Nandor J. Vadas, U.S. Magistrate Judge, where she was released on bond. Bail was set at $50,000. Reeves is next scheduled to appear before the Honorable Joseph C. Spero, U.S. Magistrate Judge, at 9:30 am on February 4, 2015, for identification of counsel.
The maximum statutory penalty for each count of mail fraud, in violation of Title 18, United States Code, Sections 1341, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The statutory penalty for each count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, is a mandatory minimum of 2 years’ imprisonment, and a fine of $250,000 or twice the gross gain or loss from the offense. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Jessica Meegan. The prosecution is the result of an investigation by the FBI.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Reeves must be presumed innocent unless and until proven guilty.
Former University School of Jackson Employee Sentenced to 12 Months and One Day in Federal Prison for Wire and Tax FraudRead the Press Release
Jackson, Tenn. – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced today that Jessica Nicole Pinkerton, 33, of Humboldt, Tennessee, was sentenced this afternoon by Chief U.S. District Judge J. Daniel Breen to serve 12 months and one day in federal prison, followed by two years of supervised release. She was also ordered to pay restitution of $749,543.70 to the University School of Jackson and the Internal Revenue Service. There is no parole in the federal prison system.
“The United States Attorney’s Office is committed to prosecuting white collar crime such as wire fraud and false statements on tax returns,” stated United States Attorney Edward L. Stanton, III. “When employees put into motion fraudulent schemes to illegally divert funds and place those funds in accounts for their own selfish gain, our office will make sure that these individuals are held accountable for their actions and vigorously prosecuted to the fullest extent of the law.”
According to the criminal information and statements made during the sentencing hearing, Pinkerton was employed as a financial services manager at the University School of Jackson (USJ) from 2008 to 2014. Beginning in late 2009 through early 2014, Pinkerton, in her capacity as financial services manager, initiated Automatic Clearing House (ACH) transfers of USJ funds into her personal bank account. Pinkerton also filed a 2013 IRS form 1040, stating that her earned income was $29,321 when it actually was $195,689.71. Pinkerton pled guilty to wire and tax fraud on July 23, 2014.
This case was investigated by the Federal Bureau of Investigation – Jackson Resident Agency and the Internal Revenue Service – Criminal Investigation Division. Assistant United States Attorney Victor L. Ivy prosecuted this case on behalf of the government.
Spanish Version
Former Owner of Shooting Range Pleads GuiltyRead the Press Release
RENO, Nev. – A man who held a federal firearms dealer’s license and owned an indoor shooting range in Reno, Nev., has pleaded guilty to charges that he unlawfully sold multiple firearms, including guns with obliterated serial numbers and machine guns, to undercover ATF agents at his business in April and May 2014, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and ATF Special Agent in Charge Joseph M. Riehl.
James David Harwin, 59, of Reno, pleaded guilty on Thursday, Jan. 29, before U.S. District Judge Miranda M. Du to one count of transfer of a firearm in violation of the National Firearms Act. Harwin is scheduled to be sentenced on May 4, 2015, at 1:30 p.m., and he faces up to 10 years in prison and a fine of up to $250,000.
“Federally licensed firearms dealers are entrusted to uphold federal laws pertaining to the importation, manufacture and sales of firearms,” said U.S. Attorney Bogden. “We will be especially vigilant in our investigations and prosecutions of firearm dealers who consciously choose to violate these laws.”
“A licensed federal firearms dealer who intentionally circumvents the law and commits federal firearm violations will be held accountable,” said ATF Special Agent in Charge Riehl. “This is a serious crime and it is critical for FFL’s to comply with federal regulations to ensure the safety of our communities.”
According to the plea agreement, Harwin and Safe Shot LLC possessed a federal firearms license (FFL) to manufacture and sell firearms. Safe Shot LLC did business as the Safe Shot Indoor Shooting Range, located at 9425 Double R Boulevard in Reno. On or about April 17, 2014, Harwin unlawfully sold four handguns to two undercover ATF agents who told Harwin they were residents of Sacramento, Calif. One of the handguns had an obliterated serial number. On May 2, 2014, Harwin sold a machine gun with an obliterated serial number to the undercover ATF agents, and on May 29, 2014, Harwin unlawfully sold a Street Sweeper shotgun and three machine guns to the undercover agents. Harwin removed the serial numbers on one of the machine guns in the presence of the undercover agents.
This case was investigated by ATF and is being prosecuted by Assistant U.S. Attorney Megan Rachow.
Former Loan Officer Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – JOSEPH BROGAN pled guilty to multiple fraud charges related to a scheme involving applications for home loans.
According to statements made in court during the guilty plea, Joseph Brogan was employed as a loan officer for USA Mortgage Inc., where he handled both conventional mortgages and FHA loans. Michael Wallis owned and operated a company known as Missouri Builders and Home Remodeling (Missouri Builders), which performed interior construction and remodeling work on houses. Bogan, Wallis and others conspired to obtain loan funds by making false and fraudulent representations on home loan documents, including misrepresenting the source of down payments and misrepresenting remodeling expenses on HUD-1 forms and related loan documents. Brogan admitted that on at least one occasion, he provided $8,000 in funds toward a down payment while knowing that loan forms and supporting documents falsely represented that the funds came from the nominal purchaser or a relative of the nominal purchaser. Wallis’ company, Missouri Builders, received disbursements of loan funds based on the false HUD-1 forms and based on false invoices for remodeling expenses. Wallis then paid Brogan from the illegally obtained loan funds. Over the course of the conspiracy, Brogan received approximately $94,948 in payments from Wallis.
Brogan, St. Louis, Missouri, pled guilty to one felony count of conspiracy to commit bank fraud and two felony counts of bank fraud before U.S. District Judge Audrey G. Fleissig. Sentencing has been set for May 14, 2015.
He now faces a penalty range of up to 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Michael Wallis previously pled guilty to related charges and is awaiting sentencing.
This case was investigated by the Department of Housing and Urban Development-Office of Inspector General, the Federal Housing Finance Agency-Office of Inspector General, the Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Reginald Harris is handling the case for the U.S. Attorney’s Office.
Former Liberty Reserve IT Manager Sentenced to 36 Months in PrisonRead the Press Release
The former information technology manager for Liberty Reserve, a company that operated one of the world’s most widely used digital currency services, was sentenced today to 36 months in prison for conspiring to operate an unlicensed money transmitting business.
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.
Maxim Chukharev, 28, of San José, Costa Rica, pleaded guilty in September 2014 before U.S. District Judge Denise L. Cote, who also imposed today’s sentence.
According to allegations contained in the indictment and statements made in related court proceedings, Chukharev was an associate of Liberty Reserve founder Arthur Budovsky and served as Liberty Reserve’s information technology manager in Costa Rica. In that role, Chukharev was principally responsible, along with co-defendant Mark Marmilev, formerly Liberty Reserve’s chief technology officer, for maintaining Liberty Reserve’s technological infrastructure.
According to allegations in the indictment and statements made in 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, and it emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store and launder the proceeds of 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.
According to court records, before being shut down by the government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system totaling more than $6 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.
Chukharev, Marmilev and Budovsky were among seven individuals charged in the indictment, which was unsealed on May 28, 2013. Three co-defendants—Marmilev, Vladimir Kats and Azzeddine El Amine—previously pleaded guilty. Marmilev was sentenced to five years in prison in December 2014; Kats and El Amine await sentencing. The indictment also charged Liberty Reserve with conspiracy to commit money laundering and operation of an unlicensed money transmitting business, and the charges remain pending.
The charges contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the U.S. Secret Service, the Internal Revenue Service-Criminal Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the 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 Financial and Economic Crime Unit of the Spanish National Police, 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 Unit 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.
Former Liberty Reserve IT Manager Sentenced in Manhattan Federal Court to Three 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 MAXIM CHUKHAREV was sentenced today to three years in prison for conspiring to operate an unlicensed money transmitting business in connection with his work for Liberty Reserve, a company that operated one of the world’s most widely used digital currency services. CHUKHAREV was primarily responsible for maintaining Liberty Reserve’s technological infrastructure and for implementing systems designed to create the false appearance that Liberty Reserve had an effective anti-money laundering program. CHUKHAREV 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: “Maxim Chukharev provided essential assistance to a criminal enterprise that he knew was operating as an unlicensed money transmitting business. By evading U.S. licensing requirements, Liberty Reserve allowed cybercriminals to move money anonymously around the world. Whenever cybercriminals, including those who intentionally encrypt and cloak criminal cyber activity, are found within the reach of justice, they will be held accountable for their actions.”
According to allegations contained in the Indictment filed against Liberty Reserve, CHUKHAREV 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.
CHUKHAREV began doing work for Liberty Reserve in 2009, and was hired as an employee in January 2010. At first, CHUKHAREV reported directly to Mark Marmilev, Liberty Reserve’s chief technology officer. As time went on, CHUKHAREV took on greater responsibility, including the creation and implementation of a system designed to hide information about Liberty Reserve’s users and the sources of its business from the company’s Costa Rican regulatory agency. By design, the system provided mostly “fake” statistics about Liberty Reserve’s business to the agency, in order to give the appearance that Liberty Reserve had an effective anti-money laundering program. Beginning in January 2012, CHUKHAREV took over many of Marmilev’s responsibilities in the day-to-day management of Liberty Reserve’s technical operations, including the maintenance and operation of its website. CHUKHAREV worked for Liberty Reserve for years despite knowing that the business was not licensed as a money transmitting business under United States law. The fact that Liberty Reserve had not registered as a money transmitting business under U.S. law was a vital component of its success as a system used to launder funds derived from or intended to promote criminal activity.
CHUKHAREV, 28, is a citizen of Russia and resident of Costa Rica.
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 CHUKHAREV’s co-defendants remain pending and, as to those defendants, are merely accusations. Those defendants are presumed innocent unless and until they are proven guilty.
Former Jetblue Employee Sentenced for Smuggling Contraband Through Security at LoganRead the Press Release
BOSTON – A former JetBlue Airways employee was sentenced yesterday for smuggling thousands of dollars of what he believed to be drug money past security checkpoints at Logan International Airport.
Anthony Trotman, 24, of Boston, was sentenced by U.S. District Court Judge F. Dennis Saylor to 14 months in prison, one year of supervised release, and ordered to pay $3,000 in criminal forfeiture. In October 2014, Trotman waived indictment and pleaded guilty to a five-count Information charging conspiracy to commit money laundering, conspiracy to defraud the United States, and three counts of illegally entering an airport area with intent to commit a felony.
A federal undercover operation revealed that on three occasions from July 2013 through February 2014, Trotman used airport security credentials to evade TSA security and smuggled $125,000, which was represented to be drug proceeds, from non-secure airport. In return, Trotman received a total of $3,000 as compensation from a cooperating witness involved in the investigation.
Co-defendant Rupert Crossley pleaded guilty in October 2014 to a four-count Information charging money laundering conspiracy, conspiracy to defraud the United States, and three counts of illegally entering an airport area with intent to commit a felony. Crossley was sentenced on Jan. 7, 2015, before U.S. District Court Judge William G. Young to two years in prison, one year of supervised release, and ordered to pay $4,000 in criminal forfeiture.
Three additional co-defendants are alleged to have also used their airport credentials to evade security as part of the scheme. Alvin Leacock, Eric Vick and Dino Dunkley were indicted in September 2014 for a money laundering conspiracy, conspiracy to defraud the United States, money laundering, and illegally entering an airport area with intent to commit a felony.
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 with the assistance of Bob Allison, Federal Security Director, Transportation Security Administration; Dwain Troutt, Special Agent in Charge, Federal Air Marshal Service; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police. The U.S. Attorney’s Office would also like to acknowledge the assistance and cooperation of the Massachusetts Port Authority, JetBlue Airways Corporate Security and Delta Airlines. The case was prosecuted by Assistant U.S. Attorneys Carlos A. López of Ortiz’s Organized Crime Drug Enforcement Task Force Unit and Dustin Chao of Ortiz’s Public Corruption Unit.
Former Credit Union Employee Charged with Embezzlement and Money LaunderingRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Male Yahaira Rivera (35, Orlando) with sixteen counts of embezzlement from a federally insured credit union and one count of money laundering. If convicted, she faces a maximum penalty of 30 years in federal prison for each embezzlement count and up to 10 years’ imprisonment for money laundering.
According to the indictment, Rivera was an employee of Fairwinds Credit Union. Between October 2010 and August 2011 she allegedly stole $258,000 from the credit union. Funds were taken on sixteen separate occasions in amounts ranging from $2,000 to $40,000. Rivera used more than $44,000 as a partial payment for a Porsche.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
Former Bank Vice President to Serve Two Years in Prison for Receiving Kickback, Filing False Tax ReturnsRead the Press Release
Urbana, Ill. – A former vice-president of the State Bank of Herscher, David Rabideau, was sentenced today to 24 months in federal prison for receiving a $75,000 kickback for procuring a real estate loan and for two counts of filing false tax returns. U.S. Senior District Judge Harold A. Baker ordered that Rabideau, 44, of Clifton, Ill., be taken immediately into custody by the U.S. Marshals Service for transport to the Federal Bureau of Prisons. Rabideau was also ordered to remain on supervised release for three years following his release from prison, and to pay restitution to the State Bank of Herscher in the amount of $100,000, and restitution to the IRS in the amount of $36,585 for unpaid income taxes.
Rabideau pled guilty to the offenses on Aug. 11, 2014, and had remained on bond pending sentencing. According to court documents, Rabideau had served as a branch manager, vice president, and secretary of the board of directors for the State Bank of Herscher in Kankakee, Ill. Rabideau also served as one of the bank’s primary loan officers. During court hearings, Rabideau admitted that in 2007, he served as the loan officer for a $500,000 bank loan to a customer to finance the purchase of real estate. Rabideau did not disclose his financial interest in this loan; that he was going to receive a $75,000 kickback from the customer. Following the real estate closing, Rabideau gave the customer a cashier’s check for $75,000 from the State Bank of Herscher, and told him to deposit it into the customer’s bank account. Rabideau also instructed the customer to write a check in the amount of $75,000, as a “finder’s fee” to Rabideau in connection with the real estate transaction. The same day, the customer wrote Rabideau a $75,000 check drawn on the customer’s business account.
Rabideau further admitted that for tax years 2006 and 2007, he failed to report various income he received. As a result of the understated gross income, Rabideau failed to pay at least $36,585 in income tax due to the government. Income Rabideau failed to report on his 2006 tax return included $16,572 he received as a “silent partner” in a real estate transaction, falsely claimed to be for the “sale of cow,” and a “finder’s fee” of $15,000 from a real estate agent, with the false statement "sale of tractor, antiques, etc.” in the check’s memo line. Rabideau admitted he failed to report additional income on his 2007 tax return, including $9,500 in capital gains from selling shares of Hershare Financial Corporation, the holding company for the State Bank of Herscher, in addition to the $75,000 kickback.
The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General and the Internal Revenue Service, Criminal Investigation Division, investigated the case. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.
# # # #Financial Advisor Pleads Guilty to Securities FraudRead the Press Release
Baltimore, Maryland - Jagveer Singh, age 55, of Clarksville, Maryland, pleaded guilty today to charges of securities fraud.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Acting Postal Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service - Washington Division.
Singh was an investment advisor who provided investment advice and services to clients in Maryland through two companies he owned, A&S Financial Services, Inc. and later, Synergia Capital Management, LLC. A&S provided financial planning, investment advice and tax services to affluent investors and small businesses. Synergia provided consulting and advisory services in the areas of financial planning, investment advice and business development and management. Both companies were located in Clarksville.
Singh has a Ph.D. in molecular biology, an MBA degree from The Johns Hopkins University, and worked as a licensed stockbroker from 2000 to 2002 at a large financial investment company.
Singh pleaded guilty to the one count indictment which charges that from January 2008 to June 2010, Singh altered a client’s monthly statements from an on-line brokerage firm that executes purchases and sales of securities, before providing those statements to the client, in order to conceal investment losses. Singh increased the market value shown on the monthly statement for numerous securities. In all, Singh altered over 24 monthly statements to hide between $224,747.34 and $53,186.76 in losses in any given month. In addition, during the time when Singh was altering his client’s monthly statements, the account suffered a total loss of about $310,310.70. During this time, Singh obtained $14,382.52 in commissions from the client.
The government seeks forfeiture of $14,382.52, and restitution to Singh’s former client of $310,310.70.
Singh faces a maximum sentence of 25 years in prison followed by three years of supervised release and a fine of $250,000. U.S. District Judge George L. Russell III has scheduled sentencing for Singh on May 21, 2015 at 9:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Ex Empleada De La Escuela De La Universidad De Jackson Condenado A 12 Meses Y Un Dia De Prision Federal Por Transferencia Electronica Ilegal Y Fraude A Los ImpuestosRead the Press Release
Jackson, Tenn. - Edward L. Stanton III, Fiscal Federal para el Distrito Oeste de Tennessee, ha anunciado hoy que Jessica Nicole Pinkerton, de 33 años, de Humboldt, Tennessee, fue sentenciada esta tarde por el Jefe Federal de Distrito, Juez J. Daniel Breen para servir 12 meses y un día en una prisión federal, seguido de dos años de libertad supervisada. También se le ordenó pagar una indemnización de $ 749,543.70 a la Escuela Universitaria de Jackson y el Servicio de Impuestos Internos. No hay libertad condicional en el sistema federal de prisiones.
"La Oficina del Fiscal de los Estados Unidos està comprometido a perseguir la delincuencia de cuello blanco como el fraude electrónico y declaraciones falsas en las declaraciones de impuestos", dijo el fiscal federal Edward L. Stanton, III. "Cuando los empleados ponen en marcha planes fraudulentos de desviar ilegalmente fondos y poner los fondos en cuentas para su propio beneficio egoístamente, nuestra oficina se asegurarà de que estos individuos sean responsables de sus actos y procesados con vigor en toda la extensión de la ley."
De acuerdo con la información y las declaraciones hechas durante la audiencia de sentencia penal, Pinkerton fue contratado como gerente de servicios financieros en la Escuela Universitaria de Jackson (USJ) de 2008 a 2014. A partir de finales de 2009 hasta principios de 2014, Pinkerton, en su calidad de gerente de servicios financieros, inició las transferencias de la red electrónica para las transacciones financieras, por sus siglas en inglés (ACH), las transferencias de fondos USJ a su cuenta bancaria personal. Pinkerton también presentó un formulario 1040 del IRS para el año 2013, afirmando que su ingreso salarial era de $29,321, cuando en realidad fue de $195,689.71. Pinkerton se declaró culpable de transferencia electrónica y cometer fraude en los impuestos el 23 de julio de 2014.
Este caso fue investigado por la Oficina Federal de Investigaciones - Agencia Residentes de Jackson y el Servicio de Impuestos Internos - División de Investigación Criminal. Fiscal Federal Auxiliar Victor L. Ivy que procesó este caso en nombre del gobierno.
Version en Inglés
Easton Woman Sentenced for Fraud SchemeRead the Press Release
Felicia Anne Straub, 42, of Easton, Pennsylvania, was sentenced today to six years in prison for three counts of wire fraud, one count of aggravated identity theft, and one count of tax evasion. Between September 5, 2006 and December 26, 2010, Straub was the office manager of Financial Adjuster’s, Inc. She embezzled FAI funds of at least $459,332 and used the money to pay for personal purchases of goods and services and to pay her husband’s personal credit card bills.
In addition to the prison term, U.S. District Court Judge Edward G. Smith ordered restitution in the amount of $459,332, three years of supervised release, and a $500 special assessment.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, the Lehigh County District Attorney’s Office, and the Whitehall Township Police Department, and is being prosecuted by Assistant United States Attorney Kishan Nair.
Defendant Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that Charlie Lewis Davis of Mobile was sentenced, following an October 2014 guilty plea to a charge of being a prohibited person in possession of a firearm. Davis was previously convicted in Baldwin County of Manslaughter and Possession of Marijuana, First Degree in 2005. By virtue of these convictions, Davis is prohibited from possessing firearms or ammunition.
On March 23, 2013, the Mobile County Sheriff’s Narcotics Unit executed a search warrant at a residence on Dalton Drive, Eight Mile, Alabama. The residents signed
Miranda waivers and spoke with law enforcement. A K-9 alerted for drugs throughout the residence and on the vehicles outside. The female resident provided keys for all the vehicles outside. In one of those vehicles Deputies encountered Davis reclined in the front passenger seat. Davis was ordered out of the vehicle and patted down for weapons. A plastic bag of marijuana was found in his right front pants pocket. Davis told Deputies he had a weapon in the car. A Mossberg .22 caliber bolt action rifle was in the backseat; and, a Beretta 9mm pistol was under the passenger seat.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). Senior United States District Court Judge Charles R. Butler varied from the applicable advisory sentencing guideline range, and imposed a 12 month sentence of imprisonment, to be followed by 3 years supervised release.
This case was referred for prosecution by Corporal Lorne Watts of the Mobile County Sheriff’s Office, who is assigned as a Task Force Officer with the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
Defendant Arrested in Business Loan Fraud CaseRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man has been arrested on wire fraud charges for taking hundreds of thousands in fees from persons who thought the payments would help them obtain loans for various business ventures, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada.
Ronald Gene Morgan, 60, was arrested by FBI agents in Las Vegas on Jan. 29. He is charged in a criminal indictment with 13 counts of wire fraud and criminal forfeiture. Morgan appeared before U.S. Magistrate Judge Cam Ferenbach on Jan. 29, and pleaded not guilty to the charges. At a detention hearing today, Morgan was released on a personal recognizance bond pending a March 30 trial date.
“We have been working diligently with our federal, state and local investigative partners to catch and prosecute persons who are committing advance fee fraud crimes,” said U.S. Attorney Bogden. “The persons who commit these offenses portray themselves as legitimate business persons, when in reality they are nothing more than con artists.”
According to the indictment, from about March 2009 to April 2011, Morgan resided in Las Vegas and operated an Illinois-incorporated company, Argent Asset Management, and a Florida-incorporated company, Argent securities (Argent). Morgan allegedly used numerous means, including the mail, internet, and telephone to advertise a fraudulent bond-offering program. Morgan promised persons that for an advance fee, he would provide them with business loans by using Argent’s assets to acquire bank bonds at a discount. Morgan told the victims that he would then re-sell the bonds at face value to an investor, generating hundreds of millions of dollars that would be available in funding to them for their various business ventures. As part of the scheme, Morgan required advance fees from victims in amounts as high as $780,000, and told victims that the fees would be held in escrow; would be refunded if loans were not obtained; and would be used solely for purposes relating to obtaining the loan. Morgan knew Argent had no assets and acquired no bonds. Morgan converted the fees he received from the victims to personal uses such as travel and entertainment, and also used them to promote and conceal the scheme to defraud. Morgan continued to solicit and accept victims’ fees while knowingly providing false excuses for funding delays when he knew he had converted victim fees to his own personal use, causing losses to victims of more than 3 million dollars.
If convicted, Morgan faces a maximum of 20 years in prison and a $250,000 fine on all counts.
The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Christina M. Brown.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Davenport Man Sentenced for Federal Heroin ConspiracyRead the Press Release
DAVENPORT, IA – On January 30, 2015, Curtis Anthony Newman, Sr., age 54, of Davenport, Iowa, was sentenced by United States District Judge John A. Jarvey to 96 months in prison for conspiracy to distribute at least one kilogram of heroin, announced United States Attorney Nicholas A. Klinefeldt. Newman was also ordered to serve five years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Beginning in approximately March 2010, and continuing until about September 22, 2012, Newman conspired with other persons to distribute heroin. Specifically, on multiple occasions during the above-mentioned time period co-conspirator Lennon Hunter, Jr. obtained heroin (ranging in weight from approximately one ounce to one-half kilogram) in Los Angeles, California. The heroin was then usually sent via parcel carrier to the Quad Cities area or provided to another co-conspirator who utilized rail and bus carriers to transport the heroin to the Quad Cities. Once in the Quad Cities, the heroin was delivered to Newman in Davenport, Iowa, for Newman’s further distribution. The total quantity of heroin distributed by Newman exceeded one kilogram.
Co-conspirator Lennon Hunter, Jr. was also charged in the Southern District of Iowa with conspiracy to distribute at least one kilogram of heroin, and Hunter, Jr. was previously sentenced by Judge Stephanie M. Rose to 120 months in prison and five years of supervised release following the imprisonment.
This case was investigated by the United States Drug Enforcement Agency - Quad Cities Metropolitan Enforcement Group, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Dallas, Texas, Man Sentenced to 188 Months in Federal Prison for Transporting and Shipping Child PornographyRead the Press Release
DALLAS — An Dallas, Texas, man was sentenced this morning by U.S. District Judge Sidney A. Fitzwater to 188 months in federal prison and a lifetime of supervised release on a child pornography conviction, announced Acting U.S. Attorney John R. Parker of the Northern District of Texas.
Timothy Bullard, 35, pleaded guilty in August 2014 to one count of transporting and shipping child pornography.
According to documents filed in the case, on November 1, 2013 FBI agents executed a search warrant at Bullard’s home, they seized computers and computer-related items.
Bullard admitted he possessed well over 600 images and possibly 500 videos of child pornography all of which were available for trading. Bullard admits to using the internet and other computer software to share and make files containing child pornography available to other users. He indicated that he had been downloading child pornography since he was sixteen years old.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The Federal Bureau of Investigations investigated. Assistant U.S. Attorney Lisa Miller prosecuted.
DEA Augments Tactical Diversion Squad with Officers from Santa Fe and Albuquerque Police DepartmentsRead the Press Release
ALBUQUERQUE – The Albuquerque office of the DEA has expanded its Tactical Diversion Squad (TDS) to include two Santa Fe Police Department officers and an Albuquerque Police Department officer. DEA’s TDSs combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
The expansion of the TDS in Albuquerque was undertaken as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative, which was launched earlier this month to address New Mexico’s heroin and opioid crisis. The HOPE Initiative is a collaboration between the U.S. Attorney’s Office and the University of New Mexico Health Sciences Center working in partnership with the Bernalillo County Opioid Accountability Initiative with the overriding goal of reducing the number of opioid-related deaths in Mexico. The Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning.
“New Mexico’s opioid addiction and overdose death rates have been at or near the top of the national scale for years,” said U.S. Attorney Damon P. Martinez. “We are pleased to have local officers from communities hardest hit by this crisis join our efforts to take on this deadly epidemic.”
Assistant Special Agent in Charge Sean R. Waite said, “DEA’s efforts in New Mexico are impossible without the support of our local partners. We value the relationships we have developed with the Santa Fe and Albuquerque Police Departments. Together we will continue to attack heroin and opioid trafficking in our communities.”
“The Santa Fe Police Department is committed to being part of this multi-agency response to a vicious epidemic that has trapped too many New Mexicans in a vicious cycle of drugs, criminality, incarceration and death,” said Santa Fe Police Chief Eric Garcia. “We will work aggressively with our partners on the DEA’s Tactical Diversion Squad to keep our streets safe and our children free from drug addiction and abuse.”
“Heroin deaths have reached epidemic levels in the state,” said Albuquerque Police Chief Gorden E. Eden. “The Drug Enforcement Agency has expanded its tactical diversion task force to target heroin dealers and the diversion of licit pharmaceuticals. This expanded partnership will also focus on prevention, education and restoring our communities.”
The newly-expanded TDS will focus its efforts on the prevention and education and law enforcement components of the HOPE Initiative. On the law enforcement front, the TDS will investigate violations of the Controlled Substances Act and other laws pertaining to the diversion of controlled substance pharmaceuticals. It will prioritize investigating, disrupting and dismantling individuals and organizations involved in diversion schemes (e.g., “doctor shopping,” prescription forgery rings, and doctors or pharmacists who illegally diverts prescription controlled substances. The TDS’s efforts on the prevention and education front will include educating medical professionals about how prescription drug trafficking and abuse contributes to New Mexico’s heroin and opioid epidemic, and making presentations on the dangers of prescription drug abuse to teenagers and their parents.
Customs and Border Protection Officer SentencedRead the Press Release
SYRACUSE, NEW YORK – Richard S. Hartunian, the United States Attorney for the Northern District of New York announced that Todd L Tyo, 50 of Heuvelton, New York, was sentenced yesterday in United States District Court in Utica to a one year term of probation and a $100 fine in connection with his conviction after a jury trial for two felony violations of making false entries in a U.S. Customs and Border Protection cash register computer at the Alexandria Bay Port of Entry. Tyo, a uniformed U.S. Customs and Border Protection Officer, made the false entries in connection with his receipt of cash from commercial trucks entering the United States from Canada in April and July of 2011.
This case was investigated by the U.S. Department of Homeland Security, Office of Inspector General (Buffalo, New York and Philadelphia, Pa. offices). The case was prosecuted by Assistant U.S. Attorney Richard R. Southwick.
Conspirators in Baltimore Bank Fraud Scheme Sentenced to PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Ramon Ingram, age 28, of Baltimore, today to four years in prison, followed by five years of supervised release, for bank fraud and aggravated identity theft. Judge Bennett also ordered Ingram to pay restitution of $191,958.39.
Judge Bennett sentenced co-defendants Quincy Jackson, age 27, and Marlon King, Jr., age 28, both of Baltimore, each to two years in prison, followed by five years of supervised, and ordered them to pay restitution of $225,626.32. Jackson was sentenced on January 26, 2015 and King was sentenced on January 29, 2015.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Commissioner Anthony W. Batts of the Baltimore Police Department.
According to his plea agreement and other court documents, from April 2012 through December 2013, Ingram conspired with co-defendants Quincy Jackson and Marlon King, Jr., to defraud financial institutions by using credit cards issued to customers of the financial institution, without the customers’ knowledge or permission, to purchase gift cards and other items at various retail locations. Ingram recruited Jackson and King to participate in the scheme.
For example, on April 15, 2012, Ingram and Jackson entered a Rite Aid located on Shipping Place in Baltimore County, where Ingram used a Susquehanna Bank card and a USAA Bank credit card, each in the name of a different victim, to make purchases. On June 19, 2012, Ingram and Jackson entered a Rite Aid located on W. Lexington Street in Baltimore, and Ingram fraudulently used a Discover credit card and a VISA credit card to make purchases.
On October 1, 2013, Jackson and King went to a department store located on Reisterstown Road in Baltimore, and fraudulently used a gift card to make purchases. The gift card was purchased at a Rite Aid located on Padonia Road in Baltimore County, using a Susquehanna credit card belonging to another individual, without the victim’s knowledge or permission.
According to court documents, Ingram and his co-conspirators used the identities of over 250 victims to make fraudulent purchases. The total loss caused by the conspiracy to Rite Aid was $191,958.39.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, Baltimore Police Department and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary Myers, who are prosecuting the case.
Columbus Man Sentenced to 15 Years for Sex Trafficking of ChildrenRead the Press Release
COLUMBUS – Valerio Alexander, 46, of Columbus, was sentenced in U.S. District Court to 15 years in prison for human trafficking.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon Miller, Special Agent in Charge, Homeland Security Investigations (HSI), Ohio Attorney General Mike DeWine, Ohio State Highway Patrol Commander Paul Pride and Columbus Police Chief Kim Jacobs announced the sentenced handed down by U.S. District Judge Edmund A. Sargus Jr.
According to court documents, a 16-year-old female was taken to Alexander’s home for the purpose of exchanging sex for drugs by co-defendant Thomasina Howard. Alexander suggested he could provide them food, shelter and drugs, in exchange for Howard and the victim engaging in prostitution for Alexander’s financial benefit.
Alexander took photographs of the child and caused the pictures to be used as advertisements for prostitution on Backpage.com. Alexander instructed the victim to stay at a Columbus apartment he provided and offered her condoms and marijuana to “calm her nerves.” The victim followed Alexander’s instructions and engaged in sexual activity for money.
Alexander pleaded guilty on January 18, 2014 to sex trafficking of children.
“The defendant caused a 16-year-old female to engage in a commercial sex act, by taking sexually suggestive photographs of her, causing those photographs to be placed in advertisements for prostitution, and instructing her how to speak to prostitution clients that called in response to the advertisement,” Assistant U.S. Attorney Heather Hill told the court.
U.S. Attorney Stewart commended the investigation by HSI, Columbus Police and Ohio Attorney General DeWine’s Ohio Organized Crime Investigations Commission.
U.S. Attorney Stewart also commended Assistant U.S. Attorneys Heather Hill and Deborah Solove, who prosecuted the case.
Coatesville Woman Charged with Bilking Comcast Employee Retirement AccountsRead the Press Release
PHILADELPHIA - Laura Wayne, 37, of Coatesville, Pennsylvania, was charged today by information with seven counts of wire fraud, announced United States Attorney Zane David Memeger. While employed as an administrator of employee retirement accounts at the Comcast Corporation, Wayne created dummy retirement accounts and used the accounts to defraud Comcast of approximately $124,876.
According to the information, Wayne created dummy accounts that appeared to be 401(k) retirement accounts managed by Fidelity Company for the benefit of Comcast employees; used the names of non-employees and their actual birthdates and social security numbers to create fraudulent employee 401(k) accounts; entered dollar amounts in the dummy accounts on the spreadsheets she sent to Fidelity so that Comcast would put money into the dummy employee accounts; and created fake on-line Fidelity accounts so that she could access the dummy employee accounts. It is further alleged that between April 2013 and January 2014, Wayne used the fake on-line accounts that she had created to direct that Fidelity transfer funds from the dummy accounts to bank accounts that she controlled.
If convicted, the defendant faces a maximum possible sentence of 140 years of in prison, three years of supervised release, restitution, a $1.75 million fine, and a $700 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Laurie Magid.
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Caldwell Man Sentenced in Tire Dumping CaseRead the Press Release
Boise - Terry Dorton Anderson, 49, of Caldwell, Idaho, was sentenced today at the federal courthouse in Boise, Idaho on two felony counts of illegally damaging public land by dumping hundreds of old tires, United States Attorney Wendy J. Olson announced. Chief United States District Judge B. Lynn Winmill sentenced Anderson to five years of probation so he can work to pay mandatory restitution of $14,500 for clean-up of Squaw Creek Canyon, and restitution in the amount of $7,157 for clean-up of land near Highway 78. Anderson can receive credit for the Highway 78 restitution if he cleans up and properly disposes of the hundreds of tires from the Highway 78 location to BLM’s satisfaction by June 15, 2015.
Anderson pleaded guilty on November 5, 2014. At his plea hearing, he admitted that, between July and December, 2012, he dumped hundreds of junk tires in Owyhee County on federal public lands administered by the Bureau of Land Management (BLM) in the steep-walled Squaw Creek Canyon area below Highway 95 south of Marsing, and on a dirt road near Mile Post 4 of Highway 78.
At sentencing, Assistant U.S. Attorney Marc Haws told the Court: “The creation of this good Earth did not result in any ‘trash lands;’ the only ‘trash lands’ are those disgraced areas trashed by some people. And one dump on public lands tends to get replicated by more people dumping there. This abuse of public land has to stop.” Chief Judge Winmill said that environmental crimes are clearly in the category of actions—like serious crimes against people—that have serious impact upon our nation. He noted that we live on a planet we can’t leave, “so we have an obligation to maintain the environment and protect it.”
“Dumping of junk tires or any kind of waste is a scourge on lands used by the public throughout southern Idaho,” said Olson. “Investigation and prosecution of these cases is a priority for the BLM and for this office. We will continue to join with our state and county partners to protect Idaho’s precious public land resources.”
This case was investigated by the Bureau of Land Management with the assistance of the Idaho Department of Environmental Quality, the Canyon County Sheriff’s Office, and the Owyhee County Sheriff’s Office.
SQUAW CREEK
HIGHWAY 78
CEO and Head Trader of Bankrupt Sentinel Management Sentenced to Prison Terms for $665 Million Fraud Scheme Before Firm’s 2007 CollapseRead the Press Release
CHICAGO — The former chief executive officer of the bankrupt Sentinel Management Group, Inc., was sentenced today to 14 years, and the firm’s former head trader was sentenced to eight years, in federal prison for defrauding hundreds of victims, including customers of Sentinel’s own clients, of more than $665 million before the firm collapsed in August 2007. The former CEO, ERIC A. BLOOM, misappropriated securities belonging to scores of customers by using them as collateral for a loan that Sentinel obtained from Bank of New York Mellon Corp. The bank loan was used, in part, to purchase millions of dollars’ worth of high-risk, illiquid securities not for customers, but for a trading portfolio maintained for the benefit of Sentinel’s officers, including Bloom, members of his family, and corporations controlled by the Bloom family.
Bloom, 49, of Northbrook was convicted in March 2014 of 18 counts of wire fraud and one count of investment adviser fraud after a four-week trial in U.S. District Court. The case is the largest financial fraud case ever prosecuted in Federal Court in Chicago.
U.S. District Court Judge Ronald Guzman said Bloom lied, cheated, and stole from Sentinel’s clients. “I don’t know how he [Bloom] could have expected anything short of horrific losses in any market downturn,” the judge said in imposing the sentence, which he ordered Bloom to start serving on April 30.
Sentinel was located in suburban Northbrook and managed short-term cash investments of futures commission merchants, commodity pools, hedge funds, and other customers. Sentinel’s former head trader, CHARLES K. MOSLEY, 51 of Vernon Hills, pleaded guilty in October 2013 to two counts of investment adviser fraud. He was sentenced after Bloom to eight years in prison, and was ordered to surrender on July 29.
Judge Guzman also ordered both defendants to pay restitution totaling $665,923,451.
“The magnitude of Bloom’s crimes is enormous, and the impact on his victims devastating, with victims around the world suffering losses . . . The Financial crisis did not cause Sentinel’s implosion; it merely tore away the façade of Sentinel’s legitimacy,” Assistant U.S. Attorney Clifford C. Histed argued in a sentencing memo. “The Sentinel case has had an enormous effect on the business and legal community in Chicago for years, and will continue to do so for years to come, and has become an infamous risk management case study,” he added.
Robert B. Wasserman, the Commodity Futures Trading Commission’s chief counsel for its Division of Clearing and Risk, testified at today’s hearing and said in a previous declaration said that Bloom’s fraud scheme “posed the threat of a massive liquidity crisis in the futures market and subjected over a dozen FCMs to immediate risk of insolvency.”
According to court records and the evidence at trial, Bloom was responsible for Sentinel’s day-to-day operations, misled customers four days before Sentinel declared bankruptcy by blaming Sentinel’s financial problems on the “liquidity crisis” and “investor fear and panic” when he knew that the actual reasons for Sentinel’s financial problems were its purchase of high-risk, illiquid securities, excessive use of leverage, and the resulting indebtedness on the Bank of New York loan, which had a balance exceeding $415 million on Aug. 13, 2007. Sentinel declared bankruptcy on Aug. 17, 2007.
Between January 2003 and August 2007, Bloom fraudulently obtained and retained under management more than $1 billion of customers’ funds by falsely representing the risks associated with investing with Sentinel, the use of customers’ funds and securities, the value of customers’ investments, and the profitability of investing with Sentinel. Bloom used customers’ securities invested in Sentinel’s “125 Portfolio” and its “Prime Portfolio” as collateral for its loan with Bank of New York to purchase millions of dollars’ worth of high-risk, illiquid collateralized debt obligations (CDOs).
Bloom lied about customers’ investments and engaged in an undisclosed trading strategy with Sentinel’s own “House Portfolio,” which they traded for the benefit of themselves and Bloom family members. The undisclosed trading strategy included extensive borrowing and a high concentration of CDOs that were inconsistent with the representations Bloom made to customers regarding separate investment portfolios. The undisclosed strategy affected all customers, regardless of the trading portfolio in which they were invested, because Bloom directed employees to use customers’ securities as collateral when Sentinel borrowed money from the Bank of New York and so-called “repo” lenders, and then used the borrowed money to carry out the undisclosed trading strategy. (Under a repurchase agreement, known as a “repo,” a party such as Sentinel, effectively a borrower, sold securities to a counterparty, effectively a lender, with an agreement to repurchase the securities at a later date.)
As part of the fraud scheme, Bloom falsely represented the returns generated by the securities in each Sentinel portfolio to customers. Rather than giving customers the actual returns generated by a particular portfolio, Bloom directed employees on a daily basis to pool the trading results for all of Sentinel’s portfolios and then allocated the returns to the various portfolios as they saw fit. To conceal the scheme, to encourage customers to invest additional funds, and to otherwise lull customers, Bloom on a daily basis caused false and misleading account statements to be created and distributed to customers, including via email. These account statements reported returns earned by customers without disclosing that the returns actually were allocated by Bloom and his employees and were not the result of the market performance of the customers’ particular portfolios. The account statements also listed the purported value of securities being held by each portfolio without disclosing that the securities were being used as collateral for Sentinel’s loan from Bank of New York.
In July and August 2007, Bloom knew that Sentinel was approaching insolvency and that defaulting on the Bank of New York loan was a real possibility, yet he caused Sentinel to take in more than $100 million in customers’ money and continued to conceal Sentinel’s true financial condition from customers.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago. Also assisting in the investigation were the Labor Department’s Employee Benefits Security Administration, the Commodity Futures Trading Commission, and the Securities and Exchange Commission. The CFTC and the SEC filed separate civil enforcement lawsuits following the collapse of Sentinel, which remains in bankruptcy proceedings.
The government was represented by Assistant U.S. Attorneys Clifford C. Histed and Patrick M. Otlewski.
Brevard County Men Sentenced to More Than 10 Years for Operating $18 Million Fraud SchemeRead the Press Release
Orlando, FL – Senior U.S. District Judge John Antoon, II today sentenced Donald Ray Babb (58, Merritt Island) and Ralph Victor Ruth (61, Melbourne) to ten years and one month in federal prison for conspiracy to commit wire fraud. The Court also ordered the forfeiture of their interest in the following properties: 422 Waterside Drive, Merritt Island, FL; 3502 Tipperary Drive, Merritt Island, FL; 3661 Turtle Mound Road, Melbourne, FL; 312 Sycamore Circle, Warne, NC; and 3498 NC Highway 60, Murphy, NC, which were traceable to proceeds of the offense. As part of their sentence, the Court also entered a money judgment in the amount of $18,731,125.58, the proceeds of the conspiracy, and ordered restitution in the amount of $9,728,968.48. Both pleaded guilty on November 12, 2014.
According to court documents, between June 2006 and December 2013, Babb and Ruth orchestrated a scheme in Brevard County that ultimately defrauded approximately 181 investors out of $18.7 million. Doing business as Southeast Mutual Insurance and Investment, LLC, Capstar Industries, LLC, and First Merchant Capital, LLC, Babb and Ruth falsely represented their businesses as licensed financial institutions whose deposits were insured by the FDIC. Using these entities, they advertised risk-free Certificates of Deposit (CDs) investment opportunities that yielded high rates of return. However, neither Babb nor Ruth ever purchased a CD for an investor. Instead, they used the money to make payments to earlier investors in the scheme, and to purchase real estate and other luxury items for themselves.
This case was investigated by Federal Bureau of Investigation, the Internal Revenue Service - Criminal Investigation, the Florida Office of Financial Regulation, and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney David Haas.
Bolton Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – Michael Hayes, 24, of Bolton, was sentenced yesterday by U.S. District Court Judge Timothy S. Hillman to 40 months in prison and eight years of supervised release for possession of child pornography. The court scheduled a hearing in March 2015 on the issue of restitution. Hayes pleaded guilty to the charge in September 2014.
In November 2013, Hayes permitted an undercover federal agent, through the use of a peer-2-peer file sharing network, to download a number of image files and video files which depict child pornography. During the subsequent execution of a search warrant at Hayes's residence, a laptop computer and other storage media were seized, which contained over 2,000 images and videos of child pornography.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, and Bolton Police Chief Vincent C. Alfano, made the announcement. The case is being prosecuted by Michelle L. Dineen Jerrett of Ortiz’s Worcester Branch Office.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Blanchester Man Sentenced to 30 Years in Prison for Producing Pornography of ChildrenRead the Press Release
CINCINNATI – Stewart M. Kidwell, 37, of Blanchester, was sentenced in U.S. District Court to 30 years in prison for production of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, John Barrios, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Office, Hamilton County Sheriff Jim Neil, Cincinnati Police Chief Jeffrey Blackwell and members of the Greater Cincinnati Internet Crimes Against Children Task Force, announced the sentence handed down today by U.S. District Judge Susan J. Dlott.
According to court documents, the Cincinnati Police Department received a report from a citizen concerned by Kidwell’s statements on social media. Agents with the Greater Cincinnati Internet Crimes Against Children Task Force communicated with Kidwell undercover. During this communication, Kidwell told task force officers he was into “young taboo” and sent several pornographic images of a pre-pubescent girl.
Investigators also discovered a posting on Kidwell’s public Facebook page with a link to an incest website with a message that he was “willing to share.”
While executing a search warrant, Kidwell agreed to speak with law enforcement officials and admitted to taking the child pornographic photos he sent to the undercover officer. He identified the female depicted in the photos as a family member, who was less than 6 years of age at the time the photos were taken.
Kidwell pleaded guilty on August 18, 2014 to production of child pornography. He was also sentenced to lifetime supervised release.“Kidwell’s actions are outrageous and reprehensible,” Assistant U.S. Attorney Christy Muncy told the court. “They have no place in a decent society whose mission should be to protect and nurture children, not abuse them. Kidwell was charged with the duty to protect the victim from the evils of the world – not be the evil.”
Agencies participating in the task force in addition to the U.S. Attorney’s Office are the: Amberley Village Police Department
Blue Ash Police Department
Cincinnati Police Department
Federal Bureau of Investigation
Hamilton County Prosecutor Joe Deters
Hamilton County Sheriff Jim Neil
Homeland Security Investigations
Secret Service
U.S. Marshals Service
West Chester Police DepartmentU.S. Attorney Stewart commended the cooperative investigation by task force officers, as well as Assistant United States Attorney Christy Muncy, who prosecuted the case.
Bismarck Businessman Sentenced for Tax EvasionRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on Jan. 30, 2015, Youde Li, 42, Bismarck, N.D., was sentenced before U. S. District Judge Daniel L. Hovland to time served and three years’ supervised release on four counts of tax evasion. Judge Hovland also ordered that Li pay $400 to the Crime Victims Fund as well as paying restitution to the IRS.
In March 2012, a search warrant was conducted on Li’s primary residence, the “China Garden” restaurant, and two safe deposit boxes. Bookkeeping records along with cash were discovered at Li’s residence. Li pleaded guilty to 4 counts of Tax Evasion for underreporting income of $961,000 from his Bismarck, N.D., restaurant called: “China Garden”.
U.S. Attorney Purdon stated, “The U. S. Attorney’s office is committed to the enforcement of all federal tax violations, from refund scams to tax evasion schemes, and will continue to aggressively prosecute this category of federal crimes.”
Shea Jones, Special Agent in Charge of the St. Paul Field Office stated, "Today's sentencing of business owner Mr. Youde Li again emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system. Our system of taxation depends on everybody paying their fair share.”
Agents for the IRS were able to locate a set of books kept by the defendant which accounted for the illegal cash as well as a set of “cooked” books which attempted to falsely reflect that no cash had been skimmed from the business by Li. Also, Li failed to report any of the income on his 1040 personal tax returns.
This case was investigated by Internal Revenue Service.
Assistant U. S. attorney Cameron Hayden prosecuted the case.
Attorney Sentenced in Connection with Rothstein CaseRead 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 George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that David Boden, 53, of Hallandale Beach, was sentenced today in West Palm Beach by United States District Judge Kenneth A. Marra to 18 months in prison, to be followed by one year of supervised release. On October 23, 2014, Boden pled guilty to conspiracy to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
Boden was an attorney who, in April 2008, began employment at RRA as a non-equity shareholder. In connection with his guilty plea, Boden admitted that, in February 2009, he began assisting broker Richard L. Pearson in the sale of the settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to Boden for his services. Beginning in September 2009, a group of investors (the “Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. Boden and Pearson, through material misstatements and omissions made to the Investor Group, caused it to incur a loss of approximately $2,400,000.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the FBI. This case was prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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.
Attorney Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TIMOTHY G. GRIFFIN, 55, of Ridgefield, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to six months of imprisonment, followed by one year of supervised release, for filing false tax returns. He also was ordered to pay a $1,000 fine and restitution to the U.S Treasury.
According to court documents and statements made in court, GRIFFIN practiced law in Bronxville, New York, and his clients paid him for his legal services. In 2006, the Internal Revenue Service sent letters to GRIFFIN about his having not filed income tax returns for 2002, 2003, and 2004 tax years. In response to the IRS inquiry, GRIFFIN prepared and submitted fraudulent individual income tax returns for the 2003 and 2004 tax years. The 2003 return reported income of $77,713, gross receipts from the law practice of $225,825, a net profit of $32,200, and a total tax of $10,981. The 2004 return reported income of $67,983, gross receipts from the law practice of $234,894, a net profit of $39,767, and a total tax of $9,606. A subsequent criminal investigation determined that GRIFFIN did not report on these two tax returns approximately $498,934 in additional gross receipts from his law practice, resulting in additional tax due of $136,844.
On September 30, 2014, GRIFFIN waived his right to indictment and pleaded guilty to one count of filing a false tax return.
Judge Underhill ordered GRIFFIN to make restitution to the U.S. Department of Treasury in the total amount of $153,807 – which includes $136,844 for the 2003 and 2004 tax years and $16,963 for the 2005 and 2006 tax years – plus applicable penalties and interest.
GRIFFIN also has two pending criminal cases in the State of New York, one involving his alleged embezzlement of $1,955,000 from the United Hebrew Cemetery on Staten Island, and one involving his alleged embezzlement of approximately $750,000 from seven clients.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
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(203) 821-3722 [email protected]Ardmore Woman Pleads Guilty to Theft of Government FundsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that PATRICIA ANN RABORN age 56, of Ardmore, Oklahoma, pled guilty to Theft of Government Funds, in violation of Title 18, United States Code, Sections 641 and 2.
The charge arose from an investigation by the Social Security Administration, Office of Inspector General.
The Indictment alleged that beginning in or around July 2006, and continuing until in or around February, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and willfully embezzle, steal, and purloin money of the Social Security Administration, namely, Social Security Disability Income payments to which she knew she was not entitled, having a value in excess of $1,000.00. The Indictment further alleged that beginning in or around March 2005, and continuing until in or around October, 2012, the defendant had knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Rob Wallace represented the United States.
Amite Woman Pleads Guilty to Theft of Bank FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANGELA LEMOINE, 43, of Amite, pled guilty today to a one-count Bill of Information charging her with the theft of funds.
According court documents, from approximately November 2005 until approximately March 1, 2013, LEMOINE worked for First NBC Bank as a manager at the Kentwood Branch. LEMOINE, admitted to stealing $14,000 by forging a customer’s signature on a maturing Certificate of Deposit (CD). Specifically, on August 6, 2012, LEMOINE withdrew $14,000 from a customer’s CD which was maturing, forged the customer’s signature, and had a teller advance her the $14,000 in cash, which she kept in her possession. LEMOINE signed a hand written confession on March 1, 2013 acknowledging that she stole $14,000. LEMOINE has made full restitution to the bank.
LEMOINE faces a possible maximum sentence of 10 years imprisonment, and/or a fine of $250,000 and up to 3 years of supervised release following any term of imprisonment. U.S. District Judge Carl J. Barbier set sentencing for April 30, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this case. Assistant United States Attorney Carter K. D. Guice, Jr is in charge of the prosecution.
111 Arrests Made in Operation “Wild Wild East”Read the Press Release
U.S. Attorney Kenneth A. Polite, DEA Special Agent in Charge Raymond “Keith” Brown, FBI Special Agent in Charge Michael Anderson, Orleans Parish District Attorney Leon Cannizzaro, New Orleans Police Superintendent Michael Harrison, and Louisiana State Probation and Parole District Administrator Frank Palestina announce the results of Operation “Wild Wild East.”
Beginning in late July 2014, DEA New Orleans Field Division initiated and led Operation Wild Wild East as part of a Violent Trafficker Initiative (VTI). This operation was in response to a sharp increase in shootings and homicides in eastern New Orleans. DEA and FBI agents, in conjunction with the New Orleans Police Department and Louisiana State Probation and Parole, began the VTI by targeting violent, repeat offenders selling heroin, crack cocaine, and guns. Over a six month period, Special Agents conducted undercover buys and telephone wire intercepts concentrated in eastern New Orleans.
On January 29, 2015, DEA, FBI, New Orleans Police Department, Louisiana State Probation & Parole conducted multiple search and arrest operations involving more than 110 law enforcement officers. This operation resulted in 111 arrests (19 Federal / 92 State) with the seizures of 32 guns (4 rifles, 27 handguns, 1 shotgun), 1 ballistic vest, 9 vehicles, $971,234 U.S. Currency, jewelry valued at $332,289, and quantities of heroin and crack cocaine. Of the 111 arrested during this operation, 65 had prior felony arrests. These repeat offenders were removed off the street - relieving the crime riddled eastern New Orleans 7th District of a tremendous burden.
“This is the way law enforcement will do business in this region,” stated U.S. Attorney Kenneth A. Polite. “Together, we are focusing on identifying, investigating, engaging, and ultimately removing perpetrators of violence from our streets. Whether it is through the MAG Unit, headed by NOPD and headquartered at ATF, the FBI Safe Streets Task Force, or efforts like DEA’s Operation Wild Wild East, we are all in this fight to ensure a safer New Orleans area.”
“Drug trafficking is one of the primary drivers of violent crime across the United States, and the City of New Orleans is no exception,” said DEA Special Agent in Charge Keith Brown. “This operation focused the joint efforts of DEA and our law enforcement partners on those drug dealers who preyed upon the good people in New Orleans East by selling drugs and committing acts of violence to protect their illegal business, and to retaliate on their perceived competition. Drug dealing and violent crime often walk hand in hand spreading fear and destruction wherever they go, and we in law enforcement have an obligation to put a stop to those who would destroy our communities. DEA is committed to its partnerships with the New Orleans Police Department, the Louisiana Department of Public Safety and Corrections Division of Probation and Parole, the FBI, and the other dedicated law enforcement officers who work in and around the City of New Orleans in our ongoing efforts to make it a safer and better place for our families and children.”
29 January 2015
Wyoming Man Sentenced for Failing to Update His Registration as A Sex OffenderRead the Press Release
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that on January 27, 2015, Wolfe Jon Taylor Willow, a 29 year old Northern Arapaho Tribal Member, was sentenced for failure to update his sex offender registration for a period of time in January 2014, when his whereabouts were unknown. Willow was sentenced by U.S. District Judge Scott Skavdahl to 16 months imprisonment, 14 years of supervised release, a $200 fine and a $100.00 special assessment. This case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation.
Westminster Investment Advisor Indicted for Theft of Client MoneyRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Jasper Buck, age 59, formerly of Westminster, Maryland and elsewhere including Sanford and Lake Mary, Florida, for mail fraud arising from an investment fraud scheme. The indictment was returned on January 21, 2015 and unsealed today upon the arrest of the defendant. An initial appearance is expected to be scheduled in federal court in the Middle District of Florida today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the five count indictment, Buck worked for mortgage companies, but held himself out to investors as an experienced investment advisor through Portfolio Financial Group (PFG). The indictment alleges that from October 2006 through at least December 2014, Buck told his victims that PFG would loan money provided by the victims to borrowers who needed funds quickly or were unable to obtain traditional bank loans and were therefore willing to pay a higher interest rate on the loans. In fact, there were no such borrowers, and Buck used the victims’ money for his own personal use or to further his fraud scheme.
Buck told his victims that there were other owners and employees of PFG. However, bank accounts for PFG listed Buck as a signatory, and PFG’s addresses were listed as either Buck’s personal residence or shipping and packaging stores such as UPS.
Buck convinced some victims to refinance their home mortgages and use lines of credits in order to invest the proceeds with Buck through PFG. Buck is alleged to have promised the victims that they would receive a monthly return on their investments greater than the victims’ monthly loan payments. In addition, he convinced some victims to move their retirement savings into an account with a self-directed IRA custodian for the purpose of then having those funds transferred to him. Rather than investing the money turned over to him, Buck used some of the money on himself, as well as to pay other victims in order to convince those victims that their investments were earning the promised returns.
Beginning in January 2014 when Buck had exhausted all of the victims’ funds in his PFG account and could no longer make any payments to the victims, he falsely represented that: there was no issue with PFG financially; PFG was updating software, or was slowed by new federal regulations, or was being sold to another company and no assets could be released until the sale was complete; victim money was in PFG’s possession, but Buck could not physically access it; or that Buck was pursuing legal action against PFG.
As a result of the scheme, Buck obtained at least $1,961,364 from the victims. The indictment seeks forfeiture of at least this amount.
Buck faces a maximum sentence of 20 years in prison and a $250,000 fine on each of the five counts of mail fraud.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorney Sean Delaney, who is prosecuting the case.
Watertown Man Indicted for Armed Sunoco RobberyRead the Press Release
SYRACUSE, NEW YORK - A grand jury in the Northern District of New York returned an indictment charging YARBROUGH LATULAS (30, of Watertown, NY) with three felony offenses: Count One charges him with interference with interstate commerce by robbery; Count Two charges him with using and carrying a firearm during and in relation to a crime of violence; and Count Three charges him with being a felon in possession of a firearm, according to U.S. Attorney RICHARD S. HARTUNIAN. If found guilty, the defendant faces a statutory maximum sentence of life imprisonment, a mandatory minimum of 10 years imprisonment, and a maximum fine of $250,000.00 per count of conviction.
The indictment alleges that on July 31, 2013, the defendant and another male entered the Sunoco located at 1222 Washington Street, Watertown, New York intending to commit a robbery. After entering the Sunoco, YARBROUGH LATULAS stole money and tobacco products from an employee of Sunoco while the other male brandished a short-barreled 12 gauge shotgun. LATULAS is a convicted felon, having been previously convicted in Jefferson County Court on October 16, 2006, for the New York State felony crime of Attempted Forgery in the Second Degree.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution resulted from an investigation conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, Syracuse, New York, the Watertown Police Department and the Metro-Jefferson Drug Task Force. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Warrensville Heights Woman Accused of Stealing $189,000 from Social Security over 20 YearsRead the Press Release
A federal grand jury today returned an indictment charging Paula Laverne Gist, 67, of Warrensville Heights, with theft of public money, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The alleged theft of Social Security funds occurred between 1994 and 2014 and totaled approximately $189,564, according to the indictment
The United States Social Security Administration Office of the Inspector General conducted the investigation. The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.
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 violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Violent Gang Member Sentenced to 38 Years in Prison for Racketeering Murder in San JoseRead the Press Release
SAN JOSE – Victor Manuel Rodriguez, a/k/a "Silencer," was sentenced today to 38 years in prison for Racketeering Conspiracy, including conspiracy to commit murder, Possession/Use of a Firearm During and in Relation to a Crime of Violence, Use of a Firearm in Furtherance of a Crime of Violence Resulting in Murder, and Distribution of Methamphetamine, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Rodriguez, 26, of San Jose, Calif., pleaded guilty on March 26, 2014.
According to court records Rodriguez is a member of the Varrio Tami Lee Gangsters (VTG), a Sureño street gang in San Jose. Members of the VTG gang are allied with members of another Sureño gang in San Jose, Varrio Colonias Trece (Colonias). The united Colonias/VTG Gang engage in crimes such as robbery, narcotics trafficking, and murder. Among other acts of violence, members of the Colonias/VTG Gang sought to attack and kill members of rival Norteño gangs.
On the afternoon of August 13, 2012, on Denair Avenue in the vicinity of Letitia Street in San Jose, Rodriguez and his co-defendant Jose Farias Barahas, a/k/a “Oso,” a Colonias gang member, were in a car “hunting” for rival Norteño gang members in retaliation for Norteño spray painted graffiti in the Colonias/VTG Gang’s territory. Rodriguez spotted a young Hispanic man that he did not know standing in a driveway and believed the young man was a Norteño based on his appearance. Rodriguez directed Barahas to turn the car around and pull up next to the young man. Rodriguez exited the vehicle carrying a loaded .38 caliber revolver and fired two shots at the victim at close range, striking him once in the head. The victim, who died two days later, was not a Norteño gang member. Rather, he was simply standing alone in his own driveway after having just arrived home with his girlfriend from the veterinarian where they had taken their sick dog.
“While this sentence cannot relieve the pain and loss suffered by the victim’s family, it is my hope that it will at least lend them some measure of comfort, knowing that one of the perpetrators of this crime will spend over three decades in jail,” said U.S. Attorney Melinda Haag. “This office will devote as many resources as necessary to partner with local and federal law enforcement agencies which are tirelessly working to rid this community of the senseless violence perpetrated by gang members.”
“The suppression of gang violence continues to be a top priority for the FBI. In coordination with our state and local partners, we hope to continue efforts to dampen and eventually eradicate gang violence in our neighborhoods, “ said SAC David Johnson. “Today’s sentencing reinforces the impact our justice system can have on helping to bring closure to those effected by violent acts.”
The Honorable Edward J. Davila, United States District Court Judge, handed down the sentence of 38 years in prison for Rodriguez. Co-defendant Barahas has also pleaded guilty and is scheduled to be sentenced by Judge Davila on March 26, 2015. Both defendants have been in custody since their arrest on October 3, 2012.
Stephen Meyer and Daniel Kaleba are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of paralegal Nina Burney. The prosecution is the result of an investigation by the FBI and the San Jose Police Department.
United States and Colombian Law Enforcement Authorities Execute Simultaneous Arrests in Puerto Rico, Florida and Colombia Dismantling International Drug Trafficking and Money Laundering OrganizationRead the Press Release
This morning, U.S. federal agents in coordination with Colombian law enforcement authorities simultaneously executed arrest warrants in Puerto Rico, Florida and Colombia, dismantling an international drug trafficking and money laundering organization responsible for the importation of multi-kilogram quantities of cocaine into the United States and the laundering of millions of dollars in drug proceeds, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico announced today.
Last month, a federal grand jury in the District of Puerto Rico returned a 23-count indictment charging 29 individuals with numerous violations to federal narcotics and money laundering laws. The charges include conspiracy to import controlled substances, conspiracy to possess controlled substances, conspiracy to launder monetary instruments and substantive counts of money laundering and international money laundering. The indictment also contains a forfeiture allegation for the proceeds obtained as a result of the organization’s illegal activities.
The individuals named in the indictment are Carlos A. Segura-Galvis, Adolfo León García-Sierra, Jair Eudoro Ramírez-Díaz, Roque Caballero-Caballero, Hugo Ocampo-Gutierrez, Mireya Cabra-Traslaviña, Elkin Meléndez-Santiago, Gamalier González-Maldonado, Giovanni Cosme-Fernández, Eduardo Esteras-Rosado, José O. Medina-Nery, Hugo Enrique Romero-Vargas, Edison Miranda-Angulo, Noe Carbajal, Felipe Francisco De La Plaza, Edwin Lozada-Flores, Miguel Vargas-Roa, Ricardo Rodríguez-Rodríguez, Jorge Villarran-Romero, Francisco Otero-Retamar, Miguel A. Lebrón-Hernández, Eldin Meléndez-Santiago, Ángel M. Sierra-Rivera, Bergman Santiago-Contes, José Martínez-Meléndez, Flor Marina González-Rojas, Geovanny Mosquera-Vanegas, Yurgen Gabriel Álvarez-Gutierrez and Brian Montalvo-Tolentino.
Nine of the 29 defendants, Adolfo León García-Sierra, Jair Eudoro Ramírez-Díaz, Roque Caballero-Caballero, Hugo Ocampo-Gutierrez, Mireya Cabra-Traslaviña, Hugo Enrique Romero-Vargas, Flor Marina González-Rojas, Geovanny Mosquera-Vanegas and Yurgen Gabriel Álvarez-Gutierrez, will be extradited from Colombia to stand trial in the District of Puerto Rico.
The investigation leading to today’s arrests uncovered that from November 2010 through September 2012, members of this drug smuggling and money laundering organization operating in Colombia were sending kilogram quantities of cocaine to Puerto Rico using go-fast vessels. Members of the organization in Colombia and Puerto Rico would coordinate the maritime transportation in the following way: the vessels would depart from the northern part of Venezuela and would meet other vessels departing from Puerto Rico to receive the drugs at a pre-arranged point, approximately 100 nautical miles south of Puerto Rico. On some occasions, the vessels coming from Venezuela would travel directly to the island of Vieques, Puerto Rico, to deliver the drugs to individuals that were waiting for the drugs at shore. The drugs would be briefly stored in Vieques until the same was transported into the main island of Puerto Rico through the Fajardo-Vieques ferry. On some occasions the organization also used cargo containers and other type of vessels to smuggle cocaine and heroin into Puerto Rico.
It was also part of the modus operandi of this organization to require that members of the organization in Puerto Rico would travel to Venezuela and other places and remain there during the drug smuggling ventures to act as a personal guarantee, also known as “fiscales,” for the payment of the controlled substances smuggled into Puerto Rico.
Once the drugs were smuggled into Puerto Rico, members of the organization operating in the Barrio Obrero ward of Santurce and other parts of the San Juan, Puerto Rico, metropolitan area would receive the drugs and distribute it in Puerto Rico for financial gain. A portion of the drugs would be further transported to New York for further distribution and additional financial gain. Once the drugs were distributed, members of the organization would reap the profits from the sale of the controlled substances and would wait for instructions from Colombia on how to send the proceeds of their illegal drug trafficking business back to Colombia.
The organization would repatriate their illegal proceeds through wire transfers to banking institutions in Panama and China, Western Union transfers to individuals in Colombia and Peru and by the use of couriers traveling to Puerto Rico from Colombia, Venezuela and/or Florida to receive hundreds of thousands of dollars in bulk cash.
The investigation also revealed that the organization used threats, intimidation and acts of violence, including kidnappings, to collect debts for the controlled substances smuggled into Puerto Rico.
Today’s arrests are the result of a long-term investigation led by special agents from the U.S. Department of Homeland Security Homeland Security Investigations (HSI), in San Juan as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
“These arrests are a clear indication of the success of the OCDETF program in the fight against drug trafficking,” said U.S. Attorney Rodríguez-Vélez. “Today’s arrests dismantle an organization that coordinated not only the traffic of drugs within Colombia and the United States, but also the movement of drug money, which is essential to the success of these illegal activities. Among the individuals to be extradited from Colombia are drug owners, a maritime transportation coordinator, a money broker and enforcers for the drug trafficking organization. Two of the individuals named in this indictment have been listed as regional priority targets of the OCDETF program and are now behind bars facing long terms of imprisonment. We will continue maximizing our multi-agency efforts and will combine resources to investigate and prosecute those who disregard our laws and try to smuggle drugs into our jurisdiction.”
“This case exemplifies that those involved in the distribution of narcotics and other contraband will be vigorously investigated and prosecuted,” said Special Agent in Charge Ángel M. Meléndez of HSI San Juan. “Drug trafficking organizations must be aggressively attacked and dismantled at every level - from the street dealer to the international supplier and drug lord. Through the coordinated efforts of our federal, state and local law enforcement partners, we have effectively eradicated an organization responsible for bringing significant quantities of drugs into our communities.”
The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations and up to 20 years for the money laundering violations. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Carlos R. Cardona for the District of Puerto Rico.
The U.S. Attorney’s Office for the District of Puerto Rico gratefully acknowledges the assistance of the U.S. Department of Justice’s Office of International Affairs, the office of the Judicial Attaché of the U.S. Embassy in Colombia, HSI special agents in Bogota, Colombia, and Colombian law enforcement authorities for their assistance and support provided in this case.
United States Attorney’s Office announces sentencing of former redevelopment commission memberRead the Press Release
John “Jay” Carter sentenced for his role in major money laundering scheme involving drug money from local marijuana dealers
PRESS RELEASE
EVANSVILLE- Josh J. Minkler, Acting United States Attorney, announced today the sentencing of a former member of the Evansville Redevelopment Commission for his role in a major drug-laundering scheme. John “Jay” Carter 49, was sentenced to four years in federal prison by U.S. District Judge Richard L. Young. Carter was convicted in October of last year on eight counts of money laundering, two counts of making false statements to federal agents and structuring a money transaction.
“The citizens of Evansville deserve better from their public officials,” said Minkler. “Mr. Carter used his position of authority to bypass the legal system and used dirty drug money to assist criminals and better himself.”
According to court documents and testimony, two Evansville-area residents, were involved in a large-scale drug trafficking operation, moving hundreds of pounds of marijuana to the tri-state area from Mexico and Texas. This activity generated large amounts of cash proceeds.
Carter assisted these men in efforts to launder their money by concealing its origin through real estate transfers, business deals, financial transactions and in at least one case, testified before the Evansville Public Safety Committee to support awarding a city contract that benefitted them.
Carter used $90,000 in drug proceeds to transfer ownership of a property on South Kentucky Avenue from one of the dealers, then transferred the property to himself. He used thousands of dollars in drug proceeds to purchase automobiles, a towing business and wreckers, later used for a City contract in Evansville. Carter also used money from drug transactions to purchase Jazzy Grooves Nightclub located on Main Street in Downtown Evansville.
This case was investigated by the Internal Revenue Service, the Evansville Police Department and the Drug Enforcement Administration.
“IRS-Criminal Investigation is united with the rest of the law enforcement community in our resolve to financially disrupt criminal organizations that commit crimes against our society,” said Special Agent in Charge James C. Lee. “When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the public trust. IRS-CI helps maintain that public trust and ensure that everyone pays their fair share.”
According to Assistant United States Attorney Matthew Brookman, who prosecuted this case for the government, Carter must serve three years of supervised release after his sentence.
United States Attorney for Southern Illinois Announces Crackdown on Federal Tax FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, along with David E. Talcott, Assistant Special Agent in Charge, Internal Revenue Service/Criminal Investigation, Chicago Field Office, highlighted today a full series of recent Indictments and criminal prosecutions aimed at combating federal tax fraud. United States Attorney Wigginton noted, “These fraudsters are stealing from every lawful citizen in the United States. Stiff prison terms will help to end these thefts. If you engage in tax fraud in the Southern District of Illinois, we will be looking for you and will put you in jail. I am hoping that the timing of this announcement, just nine days into this years’ tax filing season, will serve to warn and deter those thinking about cheating our citizens – prison time, far away from family and friends, cannot be worth the amount of money you would get from such a theft!”
"Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said James C. Lee, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. "Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."
Examples of the cases currently prosecuted serve to highlight this effort –
United States v. Edric Russell, Lakesha Wilson, Melissa Wiley, Tanesa Beverly & Pierre Carter
On January 22, 2015, a grand jury sitting in East St. Louis returned a 22 count indictment charging Edric A. Russell, 34, of East St. Louis, Lakesha R. Wilson, 27, of East St. Louis, Melissa L. Wiley, 33, of Granite City, Tanesa L. Beverly, 31, of Belleville, and Pierre J. Carter, 32, of East St. Louis, with conspiring to submit false claims to the United States and preparing false federal income tax returns. Each of these persons worked as a return preparer at a tax preparation business known as Tax King. Tax King was located on Collinsville Avenue in East St. Louis. The false tax returns were for the 2011 and the 2012 tax years. The indictment charges that these five tax preparers falsified items on their clients’ returns in order to cause the clients to receive larger refunds than they were entitled to. Specifically, it is alleged that the prepares: (1) created false Business Income and Schedules Cs in order to cause their clients to qualify for larger Earned Income Credits (“EICs”); (2) falsified wages, again to cause the clients to qualify for a larger EICs; (3) created false education expenses so that their clients would qualify for an American opportunity education credit; and (4) created false information regarding fuel taxes so that the clients would qualify for a federal fuel tax credit. Tax King charged its clients fees which ranged from approximately $400 to $650. In addition, the five preparers typically requested cash “tips” that ranged from approximately $100 to $1,000. The charge of conspiring to submit false claims carries a maximum sentence of 10 years in federal prison and a $250,000 fine. Each charge of preparing false income tax returns carries a maximum sentence of 3 years in federal prison and a fine of $250,000. The case was investigated by the Internal Revenue Service/Criminal Investigation. The prosecution is being handled by Assistant United States Attorney Scott A. Verseman.
United States v. Aisha Wright
Aisha Wright, age 33, of Alton, Illinois, waived indictment and pled guilty on January 16, 2015, to two counts of Making False Claims Against the United States. Aisha Wright operated A W Mobile Taxes, in Alton, Illinois. Potential fraud was detected by the Scheme Development Center of the I.R.S. Two undercover agents were sent to have tax returns prepared which were fraudulent. Further investigation revealed systematic preparation of false returns for taxpayers that falsified Schedule A deductions, Schedule C self-employment income, and falsified Page 3 of 8 education expenses for receipt of the education tax credit. Total losses exceed $1,000,000. Wright faces up to ten years in prison, three years supervised release, a fine of up to $250,000 and restitution. Sentencing is scheduled for April 17, 2015. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Shanta Doss
A federal grand jury returned an indictment on January 21, 2015, charging Shanta Doss, 31, of Shiloh, Illinois, with fifteen counts of making False Claims Against the United States through the filing of false federal tax returns, and one count of Making A False Declaration Before A Federal Grand Jury. The indictment charges that Shanta Doss prepared false returns for others as a paid preparer but did not sign the returns. The indictment charges that she made up numbers for Schedule C self-employment which allowed individuals to fraudulently receive additional earned income credit and larger federal tax refunds than they were entitled. Shanta Doss faces up to eighty years in prison, three years supervised release, a $250,000 fine and restitution. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Doressa Braggs
On January 29, 2015, Doressa Braggs, 46, of Belleville, Illinois, entered pleas of guilty to ten counts of Making False Claims Against the United States through the filing of federal tax returns and one count of Aggravated Identity Theft in Using a Social Security Number of Another during and in Relation to Wire Fraud. She faces a maximum sentence of up to fifty years in prison for the false claims and a mandatory consecutive two year prison sentence for the aggravated identity theft. In addition she faces up to three years supervised release, a $250,000 fine and restitution. As part of the plea, Braggs acknowledged that beginning in 2010 and continuing through the summer of 2012, she knowingly prepared and submitted false tax returns to obtain the payment of false and fraudulent federal income tax refunds from the Internal Revenue Service. The IRS Scheme Development Center (SDC) utilizes databases to research possible tax refund fraud schemes. The SDC linked tax returns based on internet protocol (IP) addresses, wage amounts, federal tax withholding amounts, employers, Page 4 of 8 occupations, electronic filing identification numbers (EFIN), and bank accounts, which revealed a tax refund scheme. The false returns prepared by Braggs utilized Forms W-2 which claimed false wages and false federal income tax withholdings. In some cases, she simply falsified the W-2s that she received from her clients, to overstate the wages and federal income tax withholding; in other cases (e.g., where the client was unemployed/did not have a W-2, she would fabricate an entirely false W-2-again, to report fictitious wages and federal income tax withholding. Many of the returns also claimed false Schedule C business expenses/losses. Braggs would typically list grooming type professions (e.g., hairstylist, beautician, etc.) on the fabricated Schedule C's that she filed with her clients' returns. Braggs falsely did not list herself in the "paid preparer" section of the returns. Sentencing has been scheduled for May 8, 2015. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Sylvia Baker, Alicia Jackson, Sylvin Baker and Lamarion Shanes
A federal grand jury returned an eight-count indictment on October 22, 2014, charging four Metro-east residents with participating in a scheme to submit false claims for federal tax refunds. Sylvia Baker, 30, Fairview Heights, and Alicia Jackson, 40, Belleville, are charged with participating in a conspiracy to defraud the United States by making false claims for tax refunds to the Internal Revenue Service by submitting false federal income tax returns. Sylvia Baker is also charged in five additional counts of submitting false tax returns for others and is charged with making a false statement to the Internal Revenue Service when interviewed during the criminal investigation. She faces a prison sentence of up to 40 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Alicia Jackson is also charged in two additional counts for making false claims for federal tax refunds and faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Lamarion Shanes, 32, East St. Louis, is charged in two counts of making false claims for federal tax refunds and faces a prison sentence of up to 20 years, a fine of up to $250,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Sylvin Baker, 58, East St. Louis, is charged in one count of making a false claim for a federal tax refund in submitting a false federal income tax return and faces a prison sentence of up to 5 years, a fine of up to $250,000, and up to 3 Page 5 of 8 years’ supervised release after serving her sentence and mandatory restitution. Trial is scheduled for March 9, 2015. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Tajuana Sullivan
Tajuana L. Sullivan, 27, of Marion, Illinois, on November 26, 2014, entered pleas of guilty to conspiracy to defraud the Internal Revenue Service by submitting numerous false federal tax returns. She also pled guilty to aggravated identity theft for using a stolen identity of another in submitting a fraudulent tax return. Sullivan faces a prison sentence of up to 37 years, a fine of up to $1,000,000, and up to 3 years’ supervised release after serving her sentence and mandatory restitution. Sentencing has been scheduled for March 26, 2015. On February 19, 2013, deputies with the Shelby County Sheriff’s Office conducted a traffic stop on a vehicle driven by Tajuana L. Sullivan. Upon a search of the vehicle, approximately 53 debit cards and a notebook with names and identifying information were found in Tajuana L. Sullivan’s possession. The IRS Scheme Development Center (SDC) utilizes databases to research possible tax refund fraud schemes. The SDC linked tax returns based on the notebook containing identifying information found in Tajuana L. Sullivan’s’ vehicle, internet protocol (IP) addresses, employers, occupations, and electronic filing identification numbers (EFIN), which revealed a tax refund scheme, some of which involved stolen identities. The data provided by the SDC consisted of 2011 and 2012 tax returns, which were filed during the years 2012 and 2013, respectively. This tax refund scheme consisted of approximately 86 federal income tax returns, which claimed approximately $283,700 in fraudulent tax refunds. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Destry Marcotte
Destry Marcotte, 48, of Belleville, Illinois, is awaiting sentencing scheduled for February 4, 2015, for the offenses of Making False Claims Against the United States through the submission of fraudulent returns and for Failure to Appear for Sentencing. On October 23, 2013, Marcotte was originally convicted by a jury of making false claims against the United States. Before the Page 6 of 8 Internal Revenue Service and during trial he made “sovereign citizen” claims of not being subject to the laws of the United States. He then failed to appear for his sentencing originally scheduled for May 1, 2014, and was indicted for Failure to Appear. He cut off and discarded a location monitoring device. He was apprehended on September 22, 2014. On October 30, 2014, he entered a plea of guilty to the failure to appear offense. He faces a total maximum punishment of up to thirty years in prison; three years supervised release, a $250,000 fine, and restitution. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Melissa Perkins
On July 23, 2014, Melissa Perkins, 33, of Tioga County, New York was charged with Conspiracy to Commit Wire Fraud through Identity Theft and Tax Fraud. Perkins has requested that the matter be transferred to the Northern District of New York for disposition. She faces a maximum penalty of up to twenty years in prison; three years supervised release, a $250,000 fine and restitution. The Indictment charges that on or about January 31, 2014, through approximately February 28, 2014, an unidentified co-conspirator hacked into a computer server of a C.P.A. firm located in Alton, Illinois, in Madison County, Illinois. The hacker reviewed tax return information of individuals and unlawfully obtained hundreds of individual personal identifiers including individuals’ Social Security numbers. The stolen personal identifier information was then used to unlawfully and fraudulently file federal tax returns using the stolen identities of clients of the Alton accounting firm in order to obtain fraudulent federal tax refunds. It was part of the conspiracy to recruit individuals to open up bank accounts and prepaid debit card accounts in order to receive the federal tax refunds. In December of 2013, Melissa Perkins, opened up a bank account at M & T Bank at the direction of a conspirator who identified himself as "Scott McConnell" in order to receive money and forward the money on to the co-conspirator. Melissa Perkins "met" Scott McConnell in or about October of 2013, through an online dating website. Scott McConnell identified himself as being in the U.S. Army and indicated he would be receiving money and would direct her to forward money to his mother in Nigeria. Thereafter, Perkins received numerous federal and state tax refunds which were deposited into her account. She would wire transfer the majority of the refunds to Nigeria. The indictment alleges that she Page 7 of 8 continued to receive the deposits into her account and continued to forward the funds to Nigeria after being advised that her conduct was illegal. The investigation was conducted by the Internal Revenue Service/Criminal Investigation. The prosecution of the case is being handled by Assistant United States Attorney Norman R. Smith.
United States v. Tanya Nichols and Justin Durley
Two Missouri residents were indicted by the federal grand jury on August 20, 2014, in a lengthy indictment alleging that Tanya Nichols, 33, of St. Louis, Missouri, functioned as a dishonest tax preparer who filed false tax returns to claim inflated tax returns for low-income tax filers. Nichols’ half-brother, Justin Durley, 30, of Hazelwood, Missouri, was charged with theft of government property for his role in the refund scheme. Nichols and Durley are scheduled for trial on February 9, 2015. The tax refund scheme alleged that Nichols prepared fraudulent income tax returns for individual tax filers in order to generate “refundable tax credits,” such as the earned income tax credit (EIC) and the child tax credit, which were refunded to the filer. The false information contained in the income tax returns prevented the IRS from making an accurate assessment of tax liabilities. It also prevented the IRS from making a correct distribution of income tax refunds. The false tax returns generated a larger tax refund than the filers were entitled to receive. Nichols shared the proceeds generated from the fraudulent returns with the tax filers, while collecting a fee in excess of that typically charged by legitimate tax preparers. Nichols also paid finders’ fees to those who recruited tax filers to participate in the scheme. The indictment charges that Nichols and her coconspirators solicited low-income individuals residing in St. Louis, Missouri and East St. Louis, Illinois to become participants in this refund scheme by promising IRS tax refunds, sometimes marketed as “free money.” The indictment explains that “refundable tax credits” are vulnerable to abuse because they have cash value to tax filers. That means a filer can receive “refund” payments for refundable credits even when the person filing the tax return has never paid any income tax whatsoever. In the case of low-income tax filers, it is common for a person to have little or no federal tax liability while still qualifying to receive these valuable refundable tax credits. This means that a low-income filer can receive a tax “refund” that exceeds the amount of income tax the filer actually paid. In that situation, the filer is not receiving a refund of their money; but rather they Page 8 of 8 are actually profiting from the tax code by receiving thousands of dollars’ worth of refundable tax credits that exceed the filer’s tax obligations. The indictment alleges that Nichols took advantage of this system by falsifying income, employment, dependents, and other factors, to fraudulently generate these large refundable tax credits. Conspiracy is punishable by not more than 5 years in federal prison, a $250,000 fine, and not more than 5 years supervised release. Theft of government property is punishable by not more than 10 years in prison, a $250,000 fine and not more than three years supervised release. Each count of wire fraud is punishable by not more than 20 years in prison, a $250,000 fine, and not more than three years of supervised release. However, the United States Sentencing Guidelines must be applied to the case and considered by the Court during sentencing. The investigation is being conducted by agents from the Internal Revenue Service / Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Steven D. Weinhoeft. NOTE: In of these all cases, an indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of the charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
United States and Colombian Law Enforcement Authorities Execute Simultaneous Arrests in Puerto Rico, Florida and Colombia Dismantling International Drug Trafficking and Money Laundering OrganizationRead the Press Release
SAN JUAN, PR –This morning, federal agents in coordination with Colombian law enforcement authorities simultaneously executed arrest warrants in Puerto Rico, Florida, and Colombia, dismantling an international drug trafficking and money laundering organization responsible for the importation of multi-kilogram quantities of cocaine into the United States and the laundering of millions of dollars in drug proceeds, announced United States Attorney Rosa Emilia Rodríguez-Vélez today.
Last month, a federal grand jury in the District of Puerto Rico returned a twenty-three count indictment charging 29 individuals with numerous violations to federal narcotics and money laundering laws. The charges include: conspiracy to import controlled substances, conspiracy to possess controlled substances, conspiracy to launder monetary instruments and substantive counts of money laundering and international money laundering. The indictment also contains a forfeiture allegation for the proceeds obtained as a result of the organization’s illegal activities.
The individuals named in the indictment are: Carlos A. Segura-Galvis, Adolfo León García-Sierra, Jair Eudoro Ramírez-Díaz, Roque Caballero-Caballero, Hugo Ocampo-Gutierrez, Mireya Cabra-Traslaviña, Elkin Meléndez-Santiago, Gamalier Gonzàlez-Maldonado, Giovanni Cosme-Fernàndez, Eduardo Esteras-Rosado, José O. Medina-Nery, Hugo Enrique Romero-Vargas, Edison Miranda-Angulo, Noe Carbajal, Felipe Francisco De La Plaza, Edwin Lozada-Flores, Miguel Vargas-Roa, Ricardo Rodríguez-Rodríguez, Jorge Villarran-Romero, Francisco Otero-Retamar, Miguel A. Lebrón-Hernàndez, Eldin Meléndez-Santiago, Ángel M. Sierra-Rivera, Bergman Santiago-Contes, José Martínez-Meléndez, Flor Marina Gonzàlez-Rojas, Geovanny Mosquera-Vanegas, Yurgen Gabriel Álvarez-Gutierrez, and Brian Montalvo-Tolentino.
Nine of the twenty-nine defendants, to wit: Adolfo León García-Sierra, Jair Eudoro Ramírez-Díaz, Roque Caballero-Caballero, Hugo Ocampo-Gutierrez, Mireya Cabra-Traslaviña, Hugo Enrique Romero-Vargas, Flor Marina Gonzàlez-Rojas, Geovanny Mosquera-Vanegas, and Yurgen Gabriel Álvarez-Gutierrez, will be extradited from Colombia to stand trial in the District of Puerto Rico.
The investigation leading to today’s arrests uncovered that, from November 2010 through September 2012, members of this drug smuggling and money laundering organization operating in Colombia were sending kilogram quantities of cocaine to Puerto Rico using go-fast vessels. Members of the organization in Colombia and Puerto Rico would coordinate the maritime transportation in the following way: the vessels would depart from the northern part of Venezuela and would meet other vessels departing from Puerto Rico to receive the drugs at a pre-arranged point, approximately 100 nautical miles south of Puerto Rico. On some occasions, the vessels coming from Venezuela would travel directly to the island of Vieques, Puerto Rico to deliver the drugs to individuals who were waiting for the drugs at shore. The drugs would be briefly stored in Vieques until the same was transported into the main island of Puerto Rico through the Fajardo-Vieques ferry. On some occasions the organization also used cargo containers and other type of vessels to smuggle cocaine and heroin into Puerto Rico.It was also part of the modus operandi of this organization to require that members of the organization in Puerto Rico travel to Venezuela and other places and remain there during the drug smuggling ventures to act as a personal guarantee (also known as “fiscales”) for the payment of the controlled substances smuggled into Puerto Rico.
Once the drugs were smuggled into Puerto Rico, members of the organization operating in the Barrio Obrero ward of Santurce and other parts of the San Juan metropolitan area would receive the drugs and distribute it in Puerto Rico for financial gain. A portion of the drugs would be transported to New York for further distribution and additional financial gain. Once the drugs were distributed, members of the organization would reap the profits from the sale of the controlled substances and would wait for instructions from Colombia on how to send the proceeds of their illegal drug trafficking business back to Colombia.The organization would repatriate their illegal proceeds through wire transfers to banking institutions in Panama and China, Western Union transfers to individuals in Colombia and Peru, and by the use of couriers traveling to Puerto Rico from Colombia, Venezuela and/or Florida to receive hundreds of thousands of dollars in bulk cash.
The investigation also revealed that the organization used threats, intimidation, and acts of violence, to include kidnappings, to collect debts for the controlled substances smuggled into Puerto Rico.
Today’s arrests are the result of a long-term investigation led by special agents from the United States Department of Homeland Security, Homeland Security Investigations (HSI), in San Juan, Puerto Rico as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
“These arrests are a clear indication of the success of the OCDETF program in the fight against drug trafficking. Today’s arrests dismantle an organization that coordinated not only the traffic of drugs within Colombia and the United States, but also the movement of drug money, which is essential to the success of these illegal activities. Among the individuals to be extradited from Colombia are drug owners, a maritime transportation coordinator, a money broker, and enforcers for the drug trafficking organization. Two of the individuals named in this indictment have been listed as regional priority targets (RPOTs) of the OCDETF program and are now behind bars facing long terms of imprisonment,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “We will continue maximizing our multi-agency efforts and will combine resources to investigate and prosecute those who disregard our laws and try to smuggle drugs into our jurisdiction.”
“This case exemplifies that those involved in the distribution of narcotics and other contraband will be vigorously investigated and prosecuted,” said Ángel M. Meléndez, special agent in charge of HSI San Juan. “Drug trafficking organizations must be aggressively attacked and dismantled at every level - from the street dealer to the international supplier and drug lord. Through the coordinated efforts of our federal, state and local law enforcement partners, we have effectively eradicated an organization responsible for bringing significant quantities of drugs into our communities.”
The case is being prosecuted by Assistant United States Attorney Carlos R. Cardona.
The United States Attorney’s Office for the District of Puerto Rico gratefully acknowledges the assistance of the US Department of Justice Office of International Affairs, the office of the Judicial Attaché of the US Embassy in Colombia, HSI special agents in Bogota, Colombia, and Colombian law enforcement authorities for their assistance and support provided in this case.
The defendants are facing terms of imprisonment from 10 years to life for the narcotics violations and up to 20 years for the money laundering violations. Criminal indictments are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
Two Minnesota Men Sentenced to Federal Prison for Meth-Distribution ConspiracyRead the Press Release
Contact: Steve Young
Two men who conspired to distribute methamphetamine were each sentenced January 26, 2015, to more than 11 years in federal prison.
Isaias Vasquez-Amaya, age 31, of Crystal, Minnesota, received the prison term after a November 13, 2014, guilty plea, and Jose Nicolas Vasquez-Mendez, age 30, of Crystal, Minnesota, received his prison term after an October 10, 2014, guilty plea. Each pled guilty to conspiracy to distribute methamphetamine.
Information provided by the United States at the sentencing’s and change of plea hearings showed Vasquez-Mendez distributed methamphetamine to confidential informants during his involvement in the conspiracy from February 2014 through August 27, 2014. Vasquez-Amaya was involved in controlled buys from undercover officers on numerous occasions and was responsible for the distribution of more than 500 grams of actual (pure) methamphetamine. Both were in possession of more than 600 grams of actual (pure) methamphetamine on August 27, 2014, during a traffic stop.
Vasquez-Amaya and Vasquez-Mendez were sentenced in Cedar Rapids, Iowa, by United States District Court Chief Judge Linda R. Reade. Each were sentenced to 135 months’ imprisonment. Both must also serve a 5-year term of supervised release after the prison term. Vasquez-Amaya was ordered to pay a $200 special assessment and Vasquez-Mendez was ordered to pay a $100 special assessment. There is no parole in the federal system.
Both are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney John Lammers and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation, the Iowa Department of Public Safety Division of Narcotics Enforcement, the Iowa State Patrol, the North Central Iowa Narcotics Task Force, and the South Central Drug Investigation Unit out of Minnesota.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-3047.
Two Illinois Women Sentenced on Charges for Illegally Obtaining Controlled Substance by FraudRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced that Abbe L. Terry, 51, of East Alton, Illinois, and Jacklyn McCormack, 26, of Belleville, Illinois, were sentenced this week in the United States District Court in East Saint Louis.
The district court ordered Terry to serve six months of imprisonment and one year of supervised release. The court also ordered Terry to pay $300 in special assessments. At her plea, Terry admitted that on May 10, 2013, October 13, 2013 and October 23, 2013, she had, through the use of fraud and forgery, obtained Duragesic Patches referred to as Fentanyl, a Schedule II controlled substance. Terry admitted that she used forged prescriptions that she had made on a home computer to obtain the controlled substances that had not been lawfully prescribed to her. Terry obtained the substances from pharmacies in Alton, Illinois.
The district court ordered McCormack to serve four months of imprisonment and three years of supervised release. The first three months of supervised release are ordered to be served in a halfway house. The court also ordered McCormack to pay $134.37 in restitution, divided equally, to the Illinois Department of Healthcare and Family Services and the U.S. Department of Health and Human Services’ Center for Medicare and Medicaid Services and pay $400 in special assessments. At her plea, McCormack admitted to using forged prescriptions to obtain Oxycodone, a Schedule II narcotic control substance.
Two Cleveland Woman Accused of Using Counterfeit Checks to Get Prepaid Cards at Target StoresRead the Press Release
A federal grand jury today returned an indictment in U.S. District Court charging Stephanie Laverne Washington, 46, and Carolyn Badley-Pinson, 56, both of Cleveland, with bank fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The women are accused of using counterfeit checks to obtain prepaid debit or credit cards at 26 Target stores in Ohio, including stores in Willoughby, Mayfield Heights, Akron and North Olmsted between 2010 and 2013. Several financial institutions were defrauded a total of approximately $164,083 as a result of the scheme, according to the indictment.
The United States Secret Service and the Ontario (Ohio) Police Department conducted the investigation. The case is being prosecuted by Assistant United States Attorney Justin Seabury Gould.
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 violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Three Indictments for Methamphetamine TraffickingRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned three indictments today, separately charging three men with trafficking methamphetamine, United States Attorney Benjamin B. Wagner announced. Assistant United States Attorney Jason S. Hitt is prosecuting the cases.
Alejandro Ortiz-Salas, 37, a citizen of Mexico, is charged with three counts of distributing methamphetamine. According to court documents, Ortiz-Salas sold methamphetamine in the Sacramento area in 2004. After a criminal complaint was issued charging him with distribution, he fled from the Eastern District of California. He was apprehended in December 2014 near the border between Texas and Mexico and brought to Sacramento. This case is the product of an investigation by the Drug Enforcement Administration and the Yolo County Narcotics Enforcement Team. Docket #: 2:15-cr-026 GEB
The following two cases are the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Glenn Interagency Narcotics Task Force, and the California Highway Patrol. Sergio Carrillo-Raygoza, 20, was charged with possessing with intent to distribute methamphetamine. According to court documents, on January 21, 2015, Carrillo-Raygoza was stopped by law enforcement in Glenn County for a traffic violation. Two pounds of methamphetamine was found in his vehicle. Docket #: 2:15-cr-024 KJM
Ulices Beltran, 21, was charged with possessing with intent to distribute methamphetamine. According to court documents, on January 21, 2015, a traffic stop of Beltran resulted in the seizure of two pounds of methamphetamine from his vehicle. Docket #: 2:15-cr-025 KJM
If convicted, all three defendants face a maximum statutory penalty of up to 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.Three Echols County Residents Indicted on Dog Fighting, Firearms and Narcotics ChargesRead the Press Release
United States Attorney Michael J. Moore announced today that a federal grand jury returned a multiple count indictment in the United States District Court for the Middle District of Georgia, Valdosta Division, charging Raymond Lee Hendrix (a/k/a “Georgia Lee” and “Lee”), of Echols County, Georgia; Willie Henderson, of Lowndes County, Georgia; and Tara Renee Hunt, of Echols County, Georgia, with conspiracy to travel in interstate commerce to sponsor and exhibit a dog in an animal fighting venture. If convicted, they could face a sentence of 5 years imprisonment, $250,000 fine, or both.Other charges include:
- travel in interstate commerce to sponsor and exhibit a dog in an animal fighting venture (Hendrix and Hunt) – potential sentence of 5 years imprisonment, $250,000, or both;
- possessing, training and transporting a dog in an animal fighting venture (Hendrix, Henderson and Hunt) – potential sentence of 5 years imprisonment, $250,00 fine, or both;
- buying, selling, delivering, possessing, training, transporting and receiving a dog in an animal fighting venture (Hendrix, Henderson, Hunt) – potential sentence of 5 years imprisonment, $250,00 fine, or both;
- possession of a firearm in furtherance of a crime of violence (Hendrix and Henderson) – potential sentence of 5 years to life in prison consecutive to any other term of imprisonment, $250,000 fine, or both;
- manufacturing marijuana (Henderson) – potential sentence of 20 years imprisonment, $1,000,000 fine, or both;
- maintaining a drug involved premises (Henderson) – potential sentence of 20 years imprisonment, $500,000 fine, or both;
- possession of a firearm in furtherance of a drug trafficking crime (Henderson) - potential sentence of 5 years to life in prison consecutive to any other term of imprisonment, $250,000 fine, or both;
- possession of a firearm by a convicted felon (Henderson) – potential sentence of 10 years imprisonment, $250,000 fine, or both.
Mr. Hendrix appeared before U.S. Magistrate Judge Thomas Q. Langstaff on January 15, 2015 in Albany for his initial appearance and arraignment. He was released on a $15,000 unsecured bond.
Ms. Hunt appeared before Judge Langstaff on January 28, 2015 in Albany for her initial appearance and arraignment. She was released on a $10,000 unsecured bond.
Mr. Henderson is scheduled to appear in U.S. District Court in Albany on February 3, 2015 for his initial appearance and arraignment.A copy of the indictment is attached. An indictment is only an allegation. The accused are presumed innocent until and unless proven guilty.
The case resulted from an inter-agency investigation conducted by the Federal Bureau of Investigation, United States Department of Agriculture – Office of Inspector General, Echols County (Georgia) Sheriff’s Office, Auburn (Alabama) Police Department, Bainbridge (Georgia) Department of Public Safety, Alabama Alcoholic Beverage Control Board, Lee County (Georgia) Sheriff’s Office along with assistance from the Humane Society of the United States and the American Society for the Prevention of Cruelty to Animals. Assistant United States Attorney Julia C. Bowen is prosecuting the case for the government.
Inquiries regarding this case should be directed to Pamela Lightsey, United States Attorney’s Office at (478) 621-2603.
Three Area Tax Preparers Indicted on Charges Involving Filing False Tax ReturnsRead the Press Release
St. Louis, MO – Three tax preparers who worked for Tax King, a local tax preparation business, have been charged for their alleged preparation of false tax returns for customers for tax years 2011 and 2012.
BROOKLYN WHITE, WILLIE KNOX and ANGEL BAILEY-DYSON, all of St. Louis, were each indicted by a federal grand jury on multiple counts of filing false tax returns. The indictment alleges that the three defendants falsely and fraudulently minimized their customers’ liability and thereby maximized their customers’ tax refunds.
"Return Preparer fraud is a priority for IRS Criminal Investigation and we have committed many resources to investigating and prosecuting cases just like these," said Tanya Brewer, Assistant Special Agent in Charge, IRS Criminal Investigation, St. Louis Field Office. "Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."
If convicted, each count carries a maximum penalty of three years in prison and/or fines up to $100,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Tax Preparer Charged in Tax Fraud SchemeRead the Press Release
PHILADELPHIA - David Nixon, 50, of Philadelphia, Pennsylvania, was charged today by superseding indictment with 84 counts of aiding and assisting in the preparation of materially false income tax returns, announced United States Attorney Zane David Memeger.
According to the superseding indictment, Nixon, the owner of Economy Tax Services, prepared materially false federal income tax returns for tax years 2007 through 2009 which included fraudulent credits for children, earned income, tuition and fees, and residential energy efficiency property; incorrect filing status; and false or falsely inflated Form 1040 Schedule A deductions for charitable contributions and employee business expenses. The prepared and filed returns reduced the amount of tax owned by Nixon's clients and increased the amount of the refunds to the clients. The indictment alleges that as the result of the false and fraudulent income tax returns, Nixon's clients received more than $200,000 in fraudulently inflated refunds.
If convicted the defendant faces a maximum possible sentence of 252 years of in prison, a fine of $21 million, one year of supervised release, and a special assessment of $8,400.
The case was investigated by the Internal Revenue Service Criminal Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.
An indictment or Information is only an accusation. A defendant is presumed innocent unless and until proven guilty.