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29 January 2015
Tax Preparation Business Owner and Son Convicted of Conspiring to Defraud the United States and Preparing False Tax ReturnsRead the Press Release
A Washington, D.C., tax return preparer and former Washington, D.C., public school teacher and her son, a current Washington, D.C., public school teacher, were convicted today by a federal jury of conspiracy and preparing and filing false tax returns, the Justice Department and the Internal Revenue Service (IRS) announced.
According to the evidence presented at trial, Sherri Davis, 42, of Washington, D.C., was the owner and operator of 2FT Fast Facts Tax Service, a tax return preparation business operating in Washington, D.C., from 2003 to 2012. In 2012, Sherri Davis changed the business name to Davis Financial Services and her son, Andre Davis, 24, was listed as the owner and operator of the business.
Sherri and Andre Davis were each convicted on one count of conspiracy to defraud the United States. Sherri Davis was also convicted of 25 counts of aiding and assisting in the preparation and filing of false federal income tax returns and three counts of filing false personal income tax returns. Andre Davis, a Washington, D.C., resident, was also convicted of one count of aiding and assisting in the preparation and filing of false tax returns.
“As we enter the 2015 filing season, tax return preparers should take note of today’s conviction,” said Principal Deputy Assistant Attorney General Caroline D. Ciraolo for the Department of Justice’s Tax Division. “The Department of Justice’s Tax Division, working with IRS-Criminal Investigation, the Offices of the U.S. Attorneys and other local, state and federal law enforcement partners, will identify, investigate and prosecute to the fullest extent of the law those individuals who willfully participate in the preparation and filing of false returns. These individuals are a threat to the integrity of the tax system, and will face felony charges, incarceration and substantial economic sanctions.”
At trial, the evidence established that Sherri and Andre Davis prepared and filed false tax returns for clients that included various false and fraudulent schedules, deductions, expenses and credits with the goal of reducing the amount of taxes owed by the taxpayers and obtaining larger refunds for the taxpayers than they were entitled to receive. In some instances, Sherri and Andre Davis and those working for them attached to the false tax returns false and fraudulent Schedules C that reported false business losses and false Schedules A that reported fraudulent itemized deductions. On some returns, the Schedule C business claimed on the return was completely fabricated. On other returns, the Schedule A included false or grossly inflated gifts to charity, job expenses and other miscellaneous expenses.
The evidence at trial further established that for calendar years 2007 through 2009, Sherri Davis filed her own false income tax returns in which she failed to report more than $300,000 in tax preparation fees that she received from her business.
“Intentionally preparing false tax returns is a criminal offense that reflects badly on the entire industry,” said Special Agent in Charge Thomas J. Kelly of IRS-Criminal Investigation’s Washington, D.C., Field Office. “As Sherri and Andre Davis found out today, it is not a good idea to file false tax returns and expect the IRS not to investigate and recommend prosecution. IRS-Criminal Investigation is committed to holding individuals accountable for their criminal actions.”
Sherri and Andre Davis will be sentenced on April 29 in the U.S. District Court for the District of Columbia by U.S. District Judge Thomas Hogan. The conspiracy conviction has a statutory maximum sentence of five years in prison and a $250,000 fine. Each of the remaining counts of conviction has a statutory maximum sentence of three years in prison and fine of $250,000.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the D.C. Office of Tax and Revenue Criminal Investigation Division, who investigated the case, as well as Trial Attorneys Jessica Moran, Tiwana Fleming and Mark McDonald for the Tax Division, who are prosecuting the case. Ciraolo also thanked the U.S. Attorney’s Office for the District of Columbia for their substantial assistance.
Suburban Man Sentenced to 25 Years in Federal Prison for Cheating 455 Investors of $105 Million and Causing $34 Million LossRead the Press Release
CHICAGO ― A northwest suburban man was sentenced today for engaging in a lengthy investment fraud scheme in which he and a co-defendant swindled approximately $105 million from 455 investors who invested in funds they purported to operate. The defendant, DANIEL SPITZER, pleaded guilty to 10 counts of mail fraud last July on the day his trial was scheduled to begin in Federal Court. Spitzer misused the money he raised from investors for his own benefit and to make Ponzi-type payments to investors, resulting in a loss of $33.98 million to at least 279 victims, many of them elderly.
Spitzer, 55, of North Barrington and formerly of the U.S. Virgin Islands, caused “very substantial damage,” U.S. District Judge James Zagel said in imposing the sentence today, a day after he ordered Spitzer into federal custody. The judge also ordered restitution of $33.98 million.
Spitzer engaged in an “extended act of greed,” between late 2004 and early 2010, Assistant U.S. Attorney Madeleine Murphy argued at today’s hearing.
According to court records, Spitzer was the principal officer and sole shareholder of Kenzie Financial Management; the sole manager and member of Kenzie Services, LLC; the president of Draseena Funds Group, Corp.; the manager of DN Management Company, LLC; and the manager of Nerium Management Company.
Co-defendant ALFRED GEREBIZZA, 59, formerly of Crystal Lake and Palm Beach Gardens, Fla., was the secretary and a director of Draseena and a sales agent for the Kenzie Funds, who also held himself out as a trader. Gerebizza was convicted at trial last July of 10 counts of mail fraud and six counts of federal income tax fraud. He is in federal custody awaiting sentencing.
Through these entities, Spitzer controlled 12 investment funds collectively known as the “Kenzie Funds.” Spitzer and Gerebizza offered and sold to the public investments in the various Kenzie Funds in the form of membership interests and limited partnerships. Through sales agents and various marketing materials, they informed investors and potential investors that their investments would be used primarily in foreign currency trading, that the Kenzie Funds had never lost money, and that they had achieved profitable historical returns. The defendants had to continually raise funds through the solicitation of new investors in the Kenzie Funds to make payments on investments made by earlier investors, all of which they concealed and intentionally failed to disclose to both new and earlier investors. Although Spitzer and Gerebizza falsely represented to prospective investors and current investors that different Kenzie Funds had different levels of risk and different investment strategies, they commingled the money invested in all 12 Kenzie Funds, then misappropriated a significant portion, and only invested less than one-third of the approximately $105 million raised from investors.
The defendants represented to investors that the Kenzie Funds had rates of returns ranging from 4.52 percent to 13.54 percent over the prior five years, although the bank accounts for the Kenzie Funds reflected that the total net return during that period was less than one percent. As of June 30, 2009, they represented that the Kenzie Funds were worth approximately $250 million when, in fact, the Funds collectively had only approximately $4 million in their bank accounts.
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; Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and James C. Lee, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division. The Chicago Regional Office of the Securities and Exchange Commission assisted the investigation.
The government was represented by Assistant U.S. Attorneys Madeleine Murphy, Jason Yonan, and Jessica Romero.
Stockton Residents Indicted in Phony Tax Return SchemeRead the Press Release
FRESNO, Calif. — Two Stockton residents were indicted today for a conspiracy to fraudulently obtain tax refunds, United States Attorney Benjamin B. Wagner announced.
Vivian Marie Williams, 49, was charged with 44 counts of conspiracy, false claims to a government agency, identity theft, and aiding and assisting in the preparation of false and fraudulent tax returns. Darrell Lemont Morris, 43, was charged with one count of conspiracy.
According to the indictment, Williams was a tax preparer who operated out of her home using the business name Williams Financial Service. Between January 2010 and March 2011, Williams allegedly submitted tax returns for both legitimate clients and in the names of victims of identity theft. The tax returns for legitimate clients reported inflated business and wage income, which allowed the taxpayers to claim a higher tax refund as a result of the Earned Income Tax Credit and the Child Tax Credit. The tax returns for victims of identity theft were allegedly submitted without the knowledge of the taxpayers, and allowed Williams to collect tax refunds on their behalf. The indictment alleges that Morris conspired with Williams in the scheme to file tax returns on behalf of victims of identity theft, allowed Williams to use his bank accounts for the deposit of tax refunds, and then shared in the proceeds with Williams.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.
If convicted, Williams faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count of filing a false claim; 15 years in prison and a $250,000 fine for each count of identity theft; and three years in prison and a $250,000 fine for each count of aiding in the preparation of false tax returns. Williams and Morris each face a maximum statutory penalty of 15 years in prison and a $250,000 fine for conspiracy. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.Somerville Man Sentenced for Leading Armed Robbery ConspiracyRead the Press Release
BOSTON – A Somerville man was sentenced today for leading an armed robbery conspiracy and possessing an illegal firearm.
Antonio Correia, Sr., 45, of Somerville, was sentenced before U.S. District Court Judge Richard G. Stearns to 123 months in prison and five years of supervised release. In April 2014, Correia pleaded guilty to conspiracy to commit robbery, possession of a firearm in furtherance of a violent crime, and four counts of being a felon in possession of a firearm.
After selling five firearms, including a rifle and shotgun, to a cooperating witness, Correia sought to use the cooperating witness to identify a drug dealer whom he could rob. The cooperator provided this information to law enforcement officers who then created a sting operation using a fictitious target in Malden to investigate Correia. Correia arranged for five other men to participate in the planned robbery on Aug. 2, 2013, several of whom travelled to Massachusetts from New Jersey the day before. On that date, Correia and two men traveled to the alleged robbery site in a car driven by the cooperating witness, while three other co-conspirators followed in a pick-up truck. Correia and another man were each armed with a loaded, semi-automatic pistol. In addition to the two handguns, the six conspirators also possessed a starter’s pistol (which could be used to intimidate their victim by firing blanks), an electric taser, two knives, pepper spray, plastic zip ties, masks, and gloves. Once the two vehicles, which were being followed by law enforcement officers, arrived at the alleged site of the robbery, officers participating in the sting operation arrested all of the conspirators.
The five co-conspirators, Antonio Carreia, Jr., Marquis Simmons, Julio Rodriguez, Branden Correia, and Jokarly Fernandez, pleaded guilty to federal charges and were sentenced by Judge Stearns.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division; Malden Police Chief Kevin Molis; and Middlesex Sheriff Peter J. Koutoujian, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Michael Crowley of Ortiz’s Organized Crime Strike Force Unit.
Snoqualmie Washington Man Indicted for Extensive Benefits Fraud SchemeRead the Press Release
A federal grand jury has indicted a former federal employee for multiple counts of wire fraud and mail fraud, and making false statements in connection with an extensive scheme to fraudulently obtain federal and state benefits, announced Acting United States Attorney Annette L. Hayes. DARRYL LEE WRIGHT, 46, of Snoqualmie, Washington, will appear today in U. S. District Court in Tacoma at 2:30 p.m. His sister KAREN M. BEVENS, 43, of Duvall, Washington, who is charged in one of the counts, will appear for arraignment next week. The indictment was returned following an investigation that revealed that WRIGHT was making false and conflicting claims to various agencies in an effort to fraudulently obtain benefits. The charged criminal conduct allegedly occurred from 2005 to the present, during which WRIGHT is alleged to have fraudulently received more than $250,000 in benefits.
According to the indictment, WRIGHT made a variety of false claims in his scheme to defraud the Department of Veterans Affairs, the Social Security Administration, and the Washington State Department of Employment Security. False statements also were made to the Department of Commerce, the Office of Personnel Management, the Washington State Department of Social and Health Services and the U.S. Army.
The nine count indictment charges schemes to commit both wire fraud and mail fraud, making false statements to the Army, and making a false statement to the U.S. Department of Commerce.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by multiple agencies led by the Social Security Office of Inspector General (SSA-OIG). The Office of Inspector General of these agencies were involved in the investigation: Veterans Affairs (VA-OIG), Department of Commerce (DOC-OIG), Office of Personnel Management (OPM-OIG), and General Services Administration (GSA-OIG). Also contributing to the investigation is the FBI, U.S. Army Criminal Investigation Division, the Washington National Guard, the Washington Employment Security Department and the Washington State Department of Social and Health Services.
The case is being prosecuted by Assistant United States Attorney David Reese Jennings.
Smith County Man Sentenced for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 39-year-old Tyler, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Micol Jauron Sears pleaded guilty on Sep. 3, 2014 to conspiracy to possess with intent to distribute crack cocaine and was sentenced to 168 months in federal prison today by U.S. District Judge Michael H. Schneider. Sears was also ordered to submit to forfeiture of $25,000.
According to information presented in court, on Apr. 9, 2014, a federal search warrant was executed at Sears’ residence in Tyler during which law enforcement officers located 1.8 kilograms of crack cocaine, six firearms and a safe containing $39,900 in cash. Sears had previously been indicted by a federal grand jury on Mar. 26, 2014 and charged with drug trafficking violations.
This case was investigated by the Federal Bureau of Investigation, the Tyler Police Department, and the FBI HIDTA Task Force and prosecuted by Assistant U.S. Attorney Bill Baldwin.Sentencings for January 22 - 27, 2015Read the Press Release
Wayne Bailey, 39, of West Jordan, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 27, 2015, for conspiracy to possess with intent to distribute heroin resulting in death. Bailey was arrested in West Jordan, Utah. He received 97 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Heather L. Fletcher, 27, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 26, 2015, for conspiracy to possess with intent to distribute heroin. Fletcher was arrested in Rock Springs, Wyoming. She received 37 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $150.00 fine and a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Skyeler I. French, 28, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 26, 2015, for conspiracy to possess with intent to distribute heroin. French was arrested in Rock Springs, Wyoming. He received 87 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Shaelynn Dawn Smith, 23, of Evanston, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 26, 2015, for conspiracy to possess with intent to distribute, and to distribute, at least 350 grams but less than 500 grams of methamphetamine. Smith was arrested in Evanston, Wyoming. She received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $150.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Erik M. Styles, 27, of Rock Springs, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 22, 2015, for conspiracy to possess with intent to distribute heroin and distribution of heroin. Styles was arrested in Rock Springs, Wyoming. He received 37 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation, and the U.S. Drug Enforcement Administration.
Scranton Man Pleads Guilty to Sex Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 28-year-old Scranton resident pleaded guilty today before Senior United States District Court Judge James M. Munley in Scranton, to conspiracy to commit sex trafficking of a minor.
According to United States Attorney Peter Smith, Sean Cantelmo admitted to conspiring with others to have a 17-year-old female engage in prostitution and illegal sexual activity during February through May 2014. Cantelmo admitted that he and others used a cell phone to post advertisements for "escort services" involving the minor female on a website, rented motel rooms in Lackawanna and Luzerne Counties to facilitate the prostitution activities, and purchased condoms for the minor to use when engaging in commercial sex acts.
Cantelmo was indicted by a federal grand jury in August 2014, as a result of an investigation by agents of the Homeland Security Investigations and the Pennsylvania State Police.
Judge Munley ordered a pre-sentence investigation to be completed, and scheduled Cantelmo’s sentencing for May 5, 2015. Cantelmo faces a mandatory minimum sentence of 10 years in prison and a potential maximum sentence of life in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Rosebud Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Anthony One Star, Jr., age 27, was indicted on January 14, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 26, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
One Star is alleged to have forcibly assaulted, resisted, opposed, and impeded a Rosebud Sioux Tribe law enforcement officer in November 2014, in Rosebud. The incident resulted in physical contact with the officer.
The charge is merely an accusation and One Star is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
One Star was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Romanian National Admits Role as Ringleader of $5 Million ATM Skimming SchemeRead the Press Release
NEWARK, N.J. – A native of Romania who was arrested in Sweden and extradited to the United States admitted today to directing a large-scale scheme that stole bank account information through a process commonly referred to as “ATM skimming,” in which conspirators secretly installed card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Marius Vintila, a/k/a “Dan Girneata,” 31, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to Count One of a superseding indictment, conspiracy to commit bank fraud, and Count Two, aggravated identity theft.
In July 2013, as federal agents in New Jersey arrested various members of his large-scale ATM skimming scheme, Vintila fled the United States. On Sept. 24, 2013, he was apprehended in Sweden and subsequently extradited to the United States. Vintila has been held without bail since his arrival in the United States in February 2014.
According to documents filed in this and other cases and statements made in court:
Vintila was the ringleader of an extensive ATM skimming scheme that targeted thousands of bank customers and defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million.
Vintila and his conspirators constructed sophisticated card-reader devices capable of reading and storing customers’ bank account information as the customers performed routine bank transactions at ATMs. Vintila and his conspirators also concealed pinhole cameras in panels designed to match existing ATM components. Vintila then taught and directed several conspirators to install the devices on ATMs. Once installed, the card-reader devices secretly read identity and account information contained on the magnetic strip of customer ATM cards. The pinhole cameras recorded customer keystrokes as they entered their personal identification numbers.
After the account information was stolen, Vintila and his conspirators used the stolen data to create thousands of fraudulent ATM cards, which they used to withdraw millions of dollars from customers’ bank accounts. Vintila also used an alias, “Dan Girneata,” to open bank accounts, rent vehicles and rent multiple self-storage units where he stored skimming devices, pinhole cameras, super glue, tape, SD cards, batteries, computers, molds, fraudulent ATM cards, and cash proceeds. Vintila also provided other conspirators with fake passports and aliases to use in furtherance of the scheme.Vintila’s ATM skimming operation is one of the largest ever uncovered by law enforcement. To date, 16 individuals, including Vintila, have been charged. Eleven of those 16 have pleaded guilty. Bogdan Radu, 30, who was charged separately, helped design and construct the ATM skimming devices used during a large portion of the scheme. Radu pleaded guilty to bank fraud conspiracy and aggravated identity theft in February 2014. Enes Causevic, 24, Marius Cotiga, 35, Constantin Ginga, 53, Dezso Gyapias, 29, Ioan Leusca, 30, Constantin Pendus, 30, and Emil Revesz, 30, all charged separately from Vintila, participated in Vintila’s ATM skimming scheme by installing or removing the devices, and by subsequently using the fraudulent ATM cards to withdraw cash from compromised bank accounts. Florin Apetrei, 18, Luis Franco, 23, and Mirel Hadzalic, 24, participated in the scheme by using the fraudulent ATM cards to withdraw cash. Causevic, Cotiga, Ginga, Gyapias, Leusca and Revesz all pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. Apetrei, Cotiga, Pendus, Franco and Hadzalic pleaded guilty to bank fraud conspiracy. For their roles in the scheme, Judge Martini sentenced Ginga, Gyapias and Leusca each to 57 months’ imprisonment. Franco and Pendus each received sentences of 33 months in prison. Hadzalic and Apetrei each received 34 and 24 months in prison, respectively. Causevic, Cotiga, Radu and Revesz are still await sentencing.
Dinu Horvat, 28, who was charged as a co-defendant along with Vintila, has pleaded not guilty, and is scheduled to stand trial in March 2015. Charges remain pending against Alin Dumitru Carabus, 40, Ionut Vasile Ciurba-Stana, a/k/a “Ciorba,” 28, and Robert Eduard Mate, a/k/a “Chioru,” 29, three additional members of the conspiracy who were charged by indictment on April 16, 2014. Carabus, Ciurba-Stana, and Mate were all apprehended in Spain, and requests for extradition to the United States are pending.
The bank fraud conspiracy charge to which Vintila pleaded guilty carries a maximum potential penalty of 30 years in prison and a $1 million fine. The aggravated identity theft charge carries a mandatory, consecutive penalty of two years in prison and a maximum $250,000 fine. Vintila is scheduled for sentencing on May 5, 2015.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Acting Special Agent in Charge Carl Agnelli, along with special agents of Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Newark Division, under the direction of Acting Special Agent in Charge John P. Woods, with the investigation leading to today’s guilty plea.
The charges against Horvat, Carabus, Ciurba-Stana and Mate are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the Special Prosecutions Division and David M. Eskew of the Criminal Division, Economic Crimes Unit, in Newark.
15-037
Defense Counsel: Brian Neary Esq., Hackensack, New Jersey
Vintila, Marius Superseding Indictment
Rocky Mount Tax Service Owner Sentenced for Tax FraudRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court yesterday, United States District Judge Terrence W. Boyle sentenced TINA LURETHA TYREE JOHNSON, 46, of Rocky Mount, North Carolina to 30 months imprisonment and 3 years of supervised release. On July 18, 2013, JOHNSON pled guilty to Tax Fraud and Aiding and Abetting in violation of Title 18, United States Code, Section 287 and 2.
U.S. Attorney Walker stated, “Our tax system relies on the honesty of tax payers with a heightened duty of honesty expected from professional tax preparers. Whenever someone like JOHNSON deliberately files false returns, the U.S. Attorney’s Office in support of the IRS will pursue the matter through the Courts as provided by our laws.”
According to the Criminal Information filed on January 31, 2013, JOHNSON, beginning in or about January 2008 and continuing until on or about June 2008, did knowingly make and present, and caused to be made and presented, to the Internal Revenue Service claims against the United States for payment that were false by preparing federal income tax returns for individuals totaling approximately $40,867.00. Johnson’s sentence was based on all relevant tax fraud conduct, not just the $40,867 list in the Criminal Information, which totaled over $400,000 in actual loss and $1 million in intended loss to the IRS.
“Filing a truthful, accurate federal tax return is a responsibility that hardworking taxpayers take very seriously, and so should their tax preparers, said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. This sentence is a clear message to unscrupulous tax return preparers, such as Tina Johnson, that with criminal activity and greed comes severe consequence. I would encourage citizens to avoid being taken advantage of by seeking out credentialed, reputable tax preparers during the current filing season.”
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney David Bragdon is handling the sentencing on behalf of the government.
Rhode Island Real Estate Businessman Convicted of Tax FraudRead the Press Release
WASHINGTON – A federal jury sitting in Providence, Rhode Island, convicted a Cranston, Rhode Island, man of one count of corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), one count of tax evasion and two counts of aiding and assisting in the preparation and filing of false corporate tax returns, the Justice Department and the IRS announced.
John Fall was remanded into custody after the jury verdict on Monday. Fall faces a statutory maximum sentence of 14 years in prison and a $1 million fine at his sentencing on April 28 before U.S. District Judge John J. McConnell Jr. for the District of Rhode Island.
According to the evidence presented at trial, Fall was a real estate consultant who bought, sold and brokered real estate. Fall also participated in handling the financial affairs of his wife and her businesses, including her dental practice, Comfort Dental Inc., and Broad Street Investments. Between 1999 and 2010, Fall used numerous nominee entities and business names to conceal his business and financial transactions. Fall also used multiple bank accounts, including commingled or “warehouse” bank accounts, in at least six states to conceal his financial transactions, as well as certain financial transactions of Comfort Dental and Broad Street Investments. To further disguise business and financial transactions, Fall used fake names and aliases to conceal his ownership and control over his nominee entities.
The evidence at trial proved that Fall filed false federal income tax returns for 1998 and 1999, and failed to file any tax returns for the years 2000 through 2010. The IRS audited Fall for 1998 through 2000, assessing him taxes totaling approximately $72,000.
The evidence at trial further established that Fall caused the filing of false tax returns on behalf of Comfort Dental for the years 2005 through 2007. Fall caused his wife’s businesses to make payments to his various entities which were falsely recorded on the corporate tax returns as deductible business expenses. When Comfort Dental and Fall’s wife were audited civilly by the IRS in late 2008, Fall attempted to obstruct the audit by encouraging his wife’s accountant not to provide the IRS with information requested through an IRS summons, and instead provided false and fraudulent information and documentation to the IRS concerning the nature of the payments by Comfort Dental and Broad Street Investments to his various entities. Fall also attempted to obstruct his wife’s compliance with an IRS summons.
This case was investigated by special agents with the IRS – Criminal Investigation. The case is being prosecuted by Assistant Chief John Kane and Trial Attorney Jeffrey Bender with the Justice Department’s Tax Division.
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15-097IF YOU HAVE QUESTIONS, PLEASE CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Remsen Man Pleads Guilty to Violations of Clean Water ActRead the Press Release
Contact: Steve Young
A man who was employed by a pork processing plant and oversaw the facility’s wastewater treatment lagoons pled guilty on December 16, 2014, in federal court in Sioux City to knowingly discharging a pollutant thereby resulting in a fish kill.
Michael J. Wolf, age, 57 from Remsen, Iowa, was convicted of one count of discharging pollutant in a water of the United States.
At the plea hearing, Wolf admitted in or about August, 2012, Sioux-Preme Packing Corporation contracted with a company to remove and replace debris from the SPC wastewater treatment lagoons, and that beginning on October 23, 2012 and continuing to October 24, 2012, he discharged the contents of the treatment lagoons (which included pollutants such as biological material and agricultural waste) through a valve, pipe and pump building into a tributary of the West Branch of the Floyd River. Wolf admitted that between October 23 and 24th, 2012, he intentionally and unlawfully discharged approximately 845,000 gallons of untested wastewater and pollutant into the tributary over an 11.5 hour period.
On October 27, 2012, the IDNR Spencer Field Office received reports of cloudy water and stressed fish downstream of the SPC facility and began investigating. Two days later, IDNR investigators observed dead fish and discolored water downstream of the SPC facility.
On November 2, 2012, the Iowa Department of Natural Resources Fisheries Bureau finished conducting their fish kill assessment. Based on observations by fisheries staff from the confluence of the unnamed tributary and West Branch of the Floyd River, and extending downstream 11.13 miles, fish of various species were killed and more were otherwise negatively affected by the criminal discharge. .
Sentencing before United States District Court Judge Donald E. O’Brien will be set after a presentence report is prepared. Wolf remains free on bond previously set pending sentencing. Wolf faces up to three years’ imprisonment, a fine of not less than $5,000 up to $50,000 per day of violation, $100 in special assessment, and up to one year of supervised release following any imprisonment.The case was investigated by the United States Environmental Protection Agency and the Iowa Department of Natural Resources and is being prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-4091.
Pennsylvania Doctor and Receptionist Charged with Running "Pill Mill"Read the Press Release
PHILADELPHIA – William J. O’Brien III, 49, and Angela Rongione, 29, both of Philadelphia, were charged by indictment, unsealed today, with running a “pill mill” from O’Brien’s medical offices in Philadelphia and Levittown, PA, announced United States Attorney Zane David Memeger. Both defendants are charged with one count of conspiracy to distribute controlled substances. O’Brien, a doctor of osteopathic medicine, is also charged with 26 counts of illegally distributing oxycodone, a Schedule II controlled substance, and Xanax, a Schedule IV controlled substance, outside the usual course of professional practice and for no legitimate medical purpose.
According to the indictment, between January 2014 and December 2014, O’Brien’s so-called Apatients@ could obtain prescriptions for addictive and dangerous controlled substances for a fee and without a physical examination or any other medical care or treatment. O’Brien typically charged customers $250 cash for the first appointment to buy prescriptions and $200 for each appointment to obtain refills. O’Brien allegedly falsified “medical” records to make it look as though customers had received physical examinations and medical treatment from him when they had not. It is further alleged that O’Brien was willing to exchange favors for higher doses of narcotics. For example, on or about October 2, 2014, O’Brien allegedly offered to trade a prescription for a sex act.
If convicted, defendant O’Brien faces 20 years in prison for the conspiracy charge and five years for each of the distribution counts and substantial fines and criminal forfeiture. Defendant Rongione faces 20 years in prison for the conspiracy charge.
The case was investigated by the FBI, the Food and Drug Administration Office of Criminal Investigations, and the Department of Health and Human Services Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorney M. Beth Leahy.
Pediatric Nurse Pleads Guilty to Sexual Exploitation of Children in His CareRead the Press Release
SAN DIEGO, CA – Michael William Lutts, a 50-year-old foster parent and pediatric nurse, pleaded guilty in federal court today to sexually exploiting a two-month-old premature boy and an 11-month-old girl who had been placed in his care last summer.
According to his plea agreement, Lutts admitted to 15 instances in July and August in which he photographed and videotaped the babies in sexually explicit situations at both his home and workplace. In one image, the defendant photographed his own exposed genitals beside the infant, who was still wearing his hospital bracelet. In some of the images and videos, the baby is crying as Lutts sexually abuses him. Lutts also admitted emailing sexually explicit images of children to others.
Lutts pleaded guilty to two counts of sexual exploitation of a minor and one count of distribution of child pornography before U.S. Magistrate Judge Jill L. Burkhardt. He faces up to 80 years in prison, and has agreed to forfeit his College area home where most of the crimes occurred.
“This is a deeply disturbing case,” said U.S. Attorney Laura Duffy. “We will do everything in our power to protect our precious, defenseless children from sexual abuse and exploitation, especially at the hands of caregivers who are supposed to keep them safe .”
FBI Special Agent in Charge Eric S. Birnbaum commented, “Though the FBI investigates many types of criminal investigations, it is particularly disturbing when the victims are sexually exploited children or infants. When this type of sexual exploitation takes place, the FBI and our law enforcement partners will aggressively pursue those who would exploit and abuse children, and bring them to justice."
DEFENDANT Case Number: 14CR2542-JAH Michael William Lutts Age: 50 San Diego, California CHARGESCounts 1, 17: Sexual Exploitation of a Minor, in violation of 18 U.S.C. §2251(a)
Maximum Penalties: Thirty years in prison, mandatory minimum 15 years per countCounts 16: Distribution of Child Pornography, in violation of 18 U.S.C. §2252(a)(2)
INVESTIGATING AGENCIES
Maximum Penalties: Twenty years in prison, mandatory minimum 5 yearsFederal Bureau of Investigation
Pasadena Man Convicted for Conspiracy to Distribute and Receive Child PornographyRead the Press Release
Baltimore, Maryland – A federal jury convicted Howard James Clem IV, a/k/a “Jamie,” age 33, of Pasadena, Maryland, late yesterday for conspiracy to distribute and receive child pornography, and for receipt and possession of child pornography. U.S. District Judge Marvin J. Garbis ordered that Clem be immediately taken into custody.
The guilty verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Anne Arundel County Police Chief Tim Altomare.
According to the evidence presented at Clem’s six day trial, Clem met Erin Elizabeth Mali in a mobile social networking and dating application in September 2012. Many of the communications exchanged by Mali and Clem, and images Mali sent to Clem focused on graphic sexual conduct involving prepubescent minors. Mali sent Clem images depicting prepubescent minors engaged in sexually explicit conduct, including a prepubescent female whom Mali and Clem identified by name.
According to witness testimony, on June 3, 2013, the social networking and dating application and website captured the images and communications exchanged by Mali and Clem, including child pornography, which caused a “cybertip” to be generated to the National Center for Missing and Exploited Children. An investigation by the Anne Arundel County Police Department resulted in a search warrant being executed at Clem’s and Mali’s residences and on their social networking accounts.
As a result of his conviction, Clem will be required to register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Clem faces a minimum mandatory sentence of five years in prison and a maximum of 20 years in prison for conspiracy to distribute and receive child pornography and for each of two counts of receipt of child pornography; and a maximum of 20 years in prison for possession of child pornography, each followed by up to lifetime of supervised release. U.S. District Judge Marvin J. Garbis has scheduled sentencing for Clem on May 27, 2015 at 10:00 a.m.
Erin Elizabeth Mali, age 32, of Arnold, Maryland, previously pleaded guilty to conspiracy to distribute and receive child pornography, and to distribution of child pornography. Mali is also detained and Judge Garbis has scheduled her sentencing for March 3, 2015, at 1:00 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Anne Arundel County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Judson T. Mihok and Leo J. Wise, who are prosecuting the case.
Operator of Local Flea Market Sentenced on Federal Intellectual Property ChargesRead the Press Release
St. Louis, MO – JACK FRISON, SR. was sentenced to twenty-four months of imprisonment on multiple charges relating to his involvement in the sale of counterfeit goods and DVDs.
According to testimony presented at trial in June, for more than two decades, Frison owned and operated the Frison Flea Market in Pagedale, MO. Vendors paid Frison a rental fee to rent and operate sales booths at his Flea Market. For more than ten years, many of Frison’s vendors openly sold counterfeit goods from their booths at the Market. The counterfeit goods included clothing, footwear, purses, accessories, movie DVDs and music CDs. Some of the vendors sold counterfeit purses and similar luxury items bearing marks owned by Coach, Louis Vuitton, Dolce & Gabbana and others. Frison knew that the goods were counterfeit and allowed vendors to continue selling such goods. Rather than removing vendors selling illegal goods, Frison fined them instead, adding to his income.
Frison, of Frontenac, MO, was convicted of one felony count of conspiracy to traffic in counterfeit goods, one felony count of aiding and abetting felony copyright infringement and one felony count of aiding and abetting trafficking counterfeit goods. He appeared today for sentencing before United States District Judge Rodney W. Sippel.
This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Assistant United States Attorneys John Bodenhausen and Jennifer Roy handled the case for the U.S. Attorney?s Office.
Ohio and Pennsylvania men sentenced for cocaine traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jermell Simpson, 31, of Columbus, Ohio, and Mario Walton, 33, of Pittsburgh, Pennsylvania, were sentenced today for distributing crack cocaine, United States Attorney William J. Ihlenfeld, II, announced today.
Walton was sentenced today to 30 months in prison with credit for time served since July 2014. An investigation by the Greater Harrison County Drug and Violent Crime Task Force, a HIDTA-funded initiative, revealed that he sold crack cocaine in July 2014 near Bridgeport, West Virginia. He pled guilty in October 2014 to one count of “Distribution of Cocaine Base, Aiding and Abetting.”
Simpson was sentenced today to 46 months in prison. An investigation by the Mon Valley Drug & Violent Crime Task Force revealed that he sold crack cocaine in Monongalia County, West Virginia. He pled guilty in September 2014 to one count of “Distribution of Cocaine Base.”
Assistant U.S. Attorney Zelda Wesley prosecuted the cases on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
Nutritional Supplement Chain Reaches Settlement in Connection with Drug DiversionRead the Press Release
BOSTON – The United States reached a civil settlement yesterday with Performance Nutrition, a Seekonk, Mass.-based business that sells nutritional supplements online and in retail stores in Massachusetts, New Hampshire, and Rhode Island, in connection with civil drug diversion allegations.
Based on facts developed in the course of the investigation, the government contended that Performance Nutrition violated the Combat Methamphetamine Epidemic Act of 2005 in connection with its sale of anti-asthma products containing ephedrine, a chemical that can be used to make methamphetamine. Specifically, the government alleged that Performance Nutrition failed to self-certify with the DEA for online sales, failed to send the DEA monthly reports of its sales, made online sales exceeding the maximum amount of ephedrine permitted, failed to ask purchasers for photo IDs, maintained sale logbooks with incomplete information, and failed to train all its employees on the legal requirements for selling ephedrine products. Performance Nutrition has agreed to pay $60,000 in settlement of these claims.
“Sales of products containing ephedrine are subject to strict requirements because ephedrine can be used to manufacture methamphetamine,” stated United States Attorney Carmen M. Ortiz. “The mishandling of any chemicals used to manufacture meth, a highly addictive and dangerous illegal drug, is a serious offense which will be pursued by my office. We will continue to work with our law enforcement partners to ensure that retail and online sellers of products containing such chemicals abide by their legal obligations.”
“Methamphetamine can destroy communities and devastate the lives of the users,” stated Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division. “Ephedrine is a key component in the manufacturing of this dangerous drug. DEA, along with our law enforcement partners, will continue to investigate businesses that violate the Combat Methamphetamine Act of 2005.”
The announcement was made today by U.S. Attorney Ortiz and Acting DEA SAC Ferguson. The investigation was conducted by Diversion Investigators with the DEA, Boston Field Division. The case was handled by Assistant U.S. Attorneys Jessica Driscoll and Christine Wichers of Ortiz’s Civil Division.
Niagara Falls Woman Indicted on Structuring ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has indicted Georgina Fisher, also known as Georgina Baratta, 44, of Niagara Falls, NY, on charges of causing a financial institution to fail to file transaction reports. The charges carry a maximum penalty of five years in prison, a fine of $250,000 or both.Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, stated that according to the complaint, on nine occasions between January 28, 2010 and February 8, 2010, Fisher traveled between various Western Union agents in Western New York and purchased four or five $500 money orders on each occasion. The defendant did so in order to avoid reporting requirements that are triggered by the purchase of more than $3,000 in money orders in one transaction or series of transactions.
The indictment is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction Special Agent-in-Charge Shantelle P. Kitchen.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
New York and California Men Plead Guilty to Access Device FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jervis
A. Hillaire, 25, of Menifee, California, and Gyadeen P. Ramdihall, 27, of Rosedale, New York, pleaded guilty in U.S. District Court to conspiracy to commit access device fraud. An access device is any card or account number that can be used to obtain money, goods, services, or any other thing of value.According to court documents, on about September 4, 2013, Ramdihall, Hillaire and a third person travelled from New York to Maine with 38 credit, debit and gift cards that were counterfeit or fraudulently altered. In Maine, the three used cards to purchase gift cards and electronic devices from vendors including, among others, Best Buy, Apple, Target and
Walmart. On October 10, 2013, an Ohio State Trooper stopped Ramdihall for speeding. Hillaire was his passenger. A total of 17 fraudulent access device cards in Hillaire’s name were found in the trunk of the vehicle under the spare tire. On January 24, 2014, the Biddeford Police stopped
Ramdihall near the Walmart store in Biddeford. Hillaire was again his passenger. Ramdihall was arrested for driving with a suspended license; Hillaire was arrested for providing a false identity. Police discovered eight fraudulent access device cards in Hillaire’s boot.The defendants face up to five years in prison, a $250,000 fine and full restitution. They will be sentenced after the completion of presentence investigation reports by the U.S. Probation
Office.The investigation was conducted by the United States Secret Service, the Kittery and
Biddeford Police Departments and the Ohio State Police.New Orleans C.P.A. Pleads Guilty to Embezzling over $1.7 MillionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PAUL E. GARDNER, age 57, a resident of New Orleans, pled guilty today to wire fraud regarding an embezzlement scheme which took place during GARDNER’s employment with Clovelly Oil Co., L.L.C. (“Clovelly Oil”).
According to court documents, GARDNER operated an accounting, consulting, and tax preparation business under the name Paul E. Gardner, C.P.A. for the past thirty years. In October 2007, Clovelly Oil hired GARDNER as a part-time bookkeeper. GARDNER was responsible for recording the receipts and disbursements for Clovelly and preparing the royalty checks for Clovelly’s more than two-hundred owners. In addition, GARDNER handled the bi-weekly payroll for all of Clovelly’s employees and he was responsible for paying himself.
Beginning in August 2010, and continuing until his termination in May 2014, GARDNER embezzled $1,798,000 from Clovelly Oil by manipulating the bi-weekly payroll records of Clovelly. Every two weeks, GARDNER logged into Clovelly’s on-line bank accounting system using his username and password given to him so he could prepare Clovelly’s payroll and increased his bi-weekly compensation by sometimes as much as $20,000. GARDNER diverted the illegally obtained funds into bank accounts held by the defendant. According to the Bill of Information, GARDNER used the embezzled funds to satisfy gambling debts incurred at a New Orleans casino.
The maximum penalty for wire fraud is 20 years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim. U.S. District Judge Nannette Jolivette Brown set sentencing on April 23, 2015.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Fraud Unit Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Nevada Man Convicted of Producing Child Pornography in KalamazooRead the Press Release
GRAND RAPIDS, MICHIGAN – Riley Patrick Lively, 27, of Las Vegas, Nevada, was convicted Wednesday afternoon of child sexual exploitation after a two-day jury trial in federal court in Grand Rapids. The crime took place in Kalamazoo in 2009. Lively faces a minimum of 15 years and a maximum of 30 years in prison.
In April 2009, while visiting Robert Norwood-Charlier, in Kalamazoo, Michigan, Lively sexually assaulted a nine-year-old boy. Norwood-Charlier openly took pictures of the assault. The FBI discovered the evidence of Riley’s sexual assault in the course of investigating Norwood-Charlier for his own sexual exploitation of children. Norwood-Charlier is currently serving a 300-month federal sentence for producing and distributing child pornography. Lively was arrested in Las Vegas in February 2014 and has been held in custody since his arrest. Despite claims that he was the victim of “mind control” and that the pictures were fakes, the jury found Lively guilty after less than an hour of deliberations.
Lively’s sentencing will be before U.S. District Judge Robert J. Jonker on a date to be scheduled.
The investigation was conducted by the FBI. Assistant U.S. Attorneys Tessa K. Hessmiller and Jeanne F. Long prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
Nevada Man Convicted of Producing Child Pornography in KalamazooRead the Press Release
GRAND RAPIDS, MICHIGAN – Riley Patrick Lively, 27, of Las Vegas, Nevada, was convicted Wednesday afternoon of child sexual exploitation after a two-day jury trial in federal court in Grand Rapids. The crime took place in Kalamazoo in 2009. Lively faces a minimum of 15 years and a maximum of 30 years in prison.
In April 2009, while visiting Robert Norwood-Charlier, in Kalamazoo, Michigan, Lively sexually assaulted a nine-year-old boy. Norwood-Charlier openly took pictures of the assault. The FBI discovered the evidence of Riley’s sexual assault in the course of investigating Norwood-Charlier for his own sexual exploitation of children. Norwood-Charlier is currently serving a 300-month federal sentence for producing and distributing child pornography. Lively was arrested in Las Vegas in February 2014 and has been held in custody since his arrest. Despite claims that he was the victim of “mind control” and that the pictures were fakes, the jury found Lively guilty after less than an hour of deliberations.
Lively’s sentencing will be before U.S. District Judge Robert J. Jonker on a date to be scheduled.
The investigation was conducted by the FBI. Assistant U.S. Attorneys Tessa K. Hessmiller and Jeanne F. Long prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
Mountain Home Co-defendants Sentenced and Ordered to Pay over $500,000 in Restituion for Wire FraudRead the Press Release
Fayetteville, Arkansas - Conner Eldridge, United States Attorney for the Western District of Arkansas, announced that Charles Edward Elliott and Nicholas Krug, both of Mountain Home, Arkansas, were sentenced today on one count of Conspiracy to Commit Wire Fraud. Elliot, 81 years old was sentenced to 42 months of probation with the first 36 months being home confinement. Krug, age 64, was sentenced to 42 months in prison followed by three years of supervised release. Elliot and Krug were also ordered to pay restitution in the amount of $539,000.00 jointly and severally. The sentencing took place before the Honorable Timothy L. Brooks in the United States District Court for the Western District of Arkansas in Fayetteville.
United States Attorney Eldridge commented, “These two defendants swindled investors out of their hard-earned money, a crime that will not be tolerated in the Western District of Arkansas. With today’s sentence, justice has been served, and these two defendants have been held accountable for their abhorrent conduct. We remain committed to investigating and prosecuting fraudulent schemes that are designed to defraud unknowing victims.”
“Today's sentences demonstrate our resolve to put an end to fraud schemes such as those perpetuated by Elliot and Krug,” states David T. Resch, Special Agent in Charge, Little Rock Federal Bureau of Investigation, “We appreciate our partnership with the United States Attorney’s Office and will continue to work together to aggressively investigate and prosecute such violations.”
According to evidence presented at the trial, in early 2007, a California woman was approached by Elliott, who was a partner with Krug in a business called “Sovereign International”, regarding an investment opportunity. They claimed to be raising money for a trading program involving a large group of investors stating that the investment would pay interest of 10% per month for one year, and at the end of the year investors would get their principal investment back. The California woman, after receiving instructions, wired $500,000 to Sovereign International’s checking account. Bank records confirm that prior to that deposit, the account held only $201.26. With that deposit, Elliott and Krug made numerous payments to other investors and wrote a $50,000 check to Krug International, another company of Elliott and Krug’s. On April 19, 2007, only $9,232.23 remained in the Sovereign International account. On April 20, 2007, an individual from Mountain Home, who was solicited by Krug for the same investment opportunity, gave Sovereign International $100,000 check that was subsequently deposited into the Sovereign International account. Elliott and Krug used the Mountain Home person’s money to send the first 10% interest check to the California woman. Approximately $10,000 was sent to the California woman a year later. The principal investment amount of $500,000 was never returned.
Elliott and Krug were originally indicted by a Federal Grand Jury on October 30, 2013. They were convicted by Jury Trial on October 7, 2014.
This case was investigated by the Federal Bureau of Investigations. Assistant U.S. Attorneys’ Candace Taylor and Brandon Carter prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Monroe County Man Pleads Guilty to Federal Heroin Trafficking and Firearms ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Monroe County man pleaded guilty today in United States District Court in Scranton, before Senior United States District Judge Edwin M. Kosik, to heroin trafficking and firearms charges.
According to United States Attorney Peter Smith, Joseph Crawford, age 41, of Marshalls Creek, pleaded guilty to the charges of possession with intent to distribute heroin and being a convicted felon in possession of firearms. Crawford and another man, Harry Rivera, age 39, of East Stroudsburg, were indicted by a grand jury in Scranton in November 2014. The charges stemmed from an incident on June 17, 2014, in Monroe County, in which investigators found approximately 97 grams of heroin within a hidden compartment in a vehicle in which Crawford and Rivera were travelling. In addition, police seized a Glock pistol and a Smith &Wesson rifle after a search of Crawford’s residence in Marshall’s Creek. Crawford, who was previously convicted of a felony offense, is prohibited by law from possessing a firearm.
The charges against Rivera are currently pending.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, the Pocono Mountain Regional Police Department and the Stroud Area Regional Police Department. The case is being prosecuted by Assistant United States Attorney Robert J. O’Hara.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for all charges under the federal statutes is imprisonment for 30 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public, and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Mississippi Man Found Guilty of Aggravated Sexual Abuse of a Minor in Indian CountryRead the Press Release
Oklahoma City, Oklahoma – A federal court jury deliberated only about three hours today before finding IVAN BENNETT WILLIS, 22, from Choctaw, Mississippi, guilty of aggravated sexual abuse in Indian Country, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to evidence presented at trial, on September 22, 2013, Willis forcibly raped a minor female victim in a home in the White Eagle Indian community in Ponca City, Oklahoma. The trial lasted three days and the jury deliberated approximately three hours before finding Willis guilty. At sentencing, Willis faces a prison sentence of up to life in prison. A sentencing date will be set by the court in approximately 90 days.
These charges are the result of an investigation and efforts by the Federal Bureau of Investigation, the Bureau of Indian Affairs, the Choctaw Police Department, and the Ponca Tribal Police. The case was prosecuted by Assistant U.S. Attorney Rozia McKinney Foster.
Reference is made to court filings for further information.
Mesquite Man Faces up to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
DALLAS — A 20-year-old Mesquite, Texas, man appeared in federal court today before Chief U.S. District Judge Jorge A. Solis and pleaded guilty to one count of production of child pornography, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Jeremiah Chayse Gardiner faces a statutory penalty of not less than 15 years or more than 30 years in federal prison and a $250,000 fine. Sentencing is set for May 20, 2015. Gardiner remains in federal custody.
According to plea documents filed in the case, an investigation into cybertips received on April 8, 2014, led a detective with the Mesquite Police Department to determine that Gardiner uploaded images of child pornography to a social networking application called Tumblr. On April 17, 2014, detectives with the Mesquite Police Department went to West Mesquite High School to speak with Gardiner and execute a search warrant on his cellphone.
Gardiner admitted uploading images of child pornography to Tumblr, and he further admitted inappropriately touching “Jane Doe #2,” when she was three-years-old. Based on those admissions, the detectives obtained and executed an arrest warrant and search warrant for Gardiner’s residence, and Gardiner was taken into custody.
An examination of Gardiner’s cell phone revealed several images of child pornography, taken with Gardiner’s phone, depicting “Jane Doe,” a two-year-old girl.
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 Mesquite Police Department and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.
Matson to Pay $1 Million for Molasses SpillsRead the Press Release
HONOLULU –Matson Terminals, Inc., a Hawaii corporation, was sentenced by U.S. Magistrate Judge Richard L. Puglisi today to pay a $400,000 fine plus restitution of $600,000 based on previously entered guilty pleas to two criminal charges of unlawfully discharging molasses into Honolulu Harbor. By the terms of the plea agreement filed in connection with the case, the restitution would be divided equally between the Waikiki Aquarium to support Coral Programs and Invasive Algae Clean-ups and Sustainable Coastlines Hawaii to inspire local communities to care for coastlines through beach clean-ups.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to information provided to the court, Matson Terminals, which loaded molasses from storage tanks into ships in Honolulu Harbor, discharged approximately 233,000 gallons of molasses into the Harbor without authorization from at least September 9, 2013, continuing to September 10, 2013. Matson had been aware of a State of Hawaii Department of Transportation report dated July 31, 2012, that the pipeline from which the discharge occurred was leaking molasses. The discharge caused or contributed to the death of approximately 25,000 fish in the harbor.
The prosecution resulted from an investigation conducted by the Environmental Protection Agency. Assistant United States Attorneys Leslie E. Osborne, Jr. and Marshall H. Silverberg handled the prosecution.
Manderson Man Indicted for Sexually Abusing A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Jasper Chase Alone, age 28, was indicted on January 21, 2015. He appeared before U.S. Magistrate Judge Veronica Duffy on January 23, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years’ imprisonment and/or a $250,000 fine, a mandatory minimum of 5 years up to lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that in September 2014, at Manderson, Chase Alone engaged in a sexual act with a girl under the age of 16.
The charge is merely an accusation and Chase Alone is presumed innocent until and unless proven guilty.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Chase Alone was detained pending trial. A trial date has not been set.
Man Sentenced to Two Years in Prison for Defrauding River Boat Pilots in LouisianaRead the Press Release
Mark A. Hofmann of San Diego, California, was sentenced today to two years in prison for his role in an investment fraud scheme whereby Hofmann misappropriated more than $400,000 in investment funds of a Louisiana riverboat pilots association known as Bolivar Investors Group, LLC.
During a hearing before U.S. District Judge Dana M. Sabraw, Hofmann was also ordered to pay more than $400,000 in restitution to members of the riverboat pilots association – the victims of Hofmann’s white collar crime.
According to court documents, Hofmann solicited $3 million from Bolivar Investors Group, LLC, as part of a joint venture to allegedly develop office buildings next to a medical center in Covington, Louisiana. As part of their deal, Hofmann agreed to open a bank account in San Diego, California, in order to use the investment funds to pay project expenses. Hofmann promised the investors in Bolivar Investors Group, LLC that they would have access to the bank account and would be able to review the statements online. However, Hofmann, and his co-conspirator, Timothy Monahan, were the only signatories on the bank account, and were the only ones with access to the bank account details. To conceal his fraudulent scheme, Hofmann provided the riverboat pilots that invested through Bolivar Investors Group with falsified bank records and other fraudulent financial documents.
According to court documents and Hofmann’s admissions, rather than spend the money on project expenses, Hofmann misappropriated more than $400,000 of funds that belonged to Bolivar Investors Group, LLC, for his own personal use and expenses, which were unrelated to the land development deal. In addition, as mentioned during the sentencing hearing today, Hofmann also withdrew from the joint venture bank account more than $230,000 in cash and checks that he wrote to himself, which was also unrelated to the land deal.
During the sentencing hearing, two of the riverboat pilots from Louisiana told the Court that Hofmann’s fraud had destroyed personal relationships between generations of pilots dating back 100 years. The two pilots said the victims are constantly reminded each month of Hofmann’s fraud because they continue to pay monthly interest and principal on loans they had taken out to invest in the joint venture with Hofmann.
United States Attorney Laura E. Duffy said, “Today, justice was served on behalf of the riverboat pilots association in Louisiana, who placed their trust in Mr. Hofmann. We hope that this case serves as a deterrent to those raising capital for joint ventures who might seek to take advantage of their investors and misappropriate their funds.”
This case was investigated by the New Orleans Division of the Federal Bureau of Investigation and presented for prosecution to the U.S. Attorney’s Office in the Eastern District of Louisiana. The case was transferred to the Southern District of California for entry of the guilty plea and for sentencing.
Man Sentenced to Two Years in Prison for Defrauding River Boat Pilots in LouisianaRead the Press Release
SAN DIEGO –Mark A. Hofmann of San Diego, California, was sentenced today to two years in prison for his role in an investment fraud scheme whereby Hofmann misappropriated more than $400,000 in investment funds of a Louisiana riverboat pilots association known as Bolivar Investors Group, LLC.
During a hearing before U.S. District Judge Dana M. Sabraw, Hofmann was also ordered to pay more than $400,000 in restitution to members of the riverboat pilots association – the victims of Hofmann’s white collar crime.
According to court documents, Hofmann solicited $3 million from Bolivar Investors Group, LLC, as part of a joint venture to allegedly develop office buildings next to a medical center in Covington, Louisiana. As part of their deal, Hofmann agreed to open a bank account in San Diego, California, in order to use the investment funds to pay project expenses. Hofmann promised the investors in Bolivar Investors Group, LLC that they would have access to the bank account and would be able to review the statements online. However, Hofmann, and his co-conspirator, Timothy Monahan, were the only signatories on the bank account, and were the only ones with access to the bank account details. To conceal his fraudulent scheme, Hofmann provided the riverboat pilots that invested through Bolivar Investors Group with falsified bank records and other fraudulent financial documents.
According to court documents and Hofmann’s admissions, rather than spend the money on project expenses, Hofmann misappropriated more than $400,000 of funds that belonged to Bolivar Investors Group, LLC, for his own personal use and expenses, which were unrelated to the land development deal. In addition, as mentioned during the sentencing hearing today, Hofmann also withdrew from the joint venture bank account more than $230,000 in cash and checks that he wrote to himself, which was also unrelated to the land deal.
During the sentencing hearing, two of the riverboat pilots from Louisiana told the Court that Hofmann’s fraud had destroyed personal relationships between generations of pilots dating back 100 years. The two pilots said the victims are constantly reminded each month of Hofmann’s fraud because they continue to pay monthly interest and principal on loans they had taken out to invest in the joint venture with Hofmann.
United States Attorney Laura E. Duffy said, “Today, justice was served on behalf of the riverboat pilots association in Louisiana, who placed their trust in Mr. Hofmann. We hope that this case serves as a deterrent to those raising capital for joint ventures who might seek to take advantage of their investors and misappropriate their funds.”
This case was investigated by the New Orleans Division of the Federal Bureau of Investigation and presented for prosecution to the U.S. Attorney’s Office in the Eastern District of Louisiana. The case was transferred to the Southern District of California for entry of the guilty plea and for sentencing.
DEFENDANTS Case Number: 13CR4073-DMS Mark A. Hofmann Age: 57 CHARGESCount 1: Title 18, United States Code, Section 1343 – Wire Fraud -- statutory maximum sentence of 20 years’ custody, a maximum fine of $250,000, special assessment of $100, and a maximum term of supervised release of 3 years.
INVESTIGATING AGENCIESFederal Bureau of Investigation – New Orleans Division
U.S. Attorney’s Office for the Eastern District of Louisiana
U.S. Attorney’s Office for the Southern District of CaliforniaMan Convicted at Trial for Bank RobberyRead the Press Release
Contact Person: Nathan Williams (843) 727-4381
Charleston, South Carolina ---- United States Attorney William N. Nettles stated today that Leonard Riley III, age 32, of Charleston was convicted following a three day jury trial in federal court for his role in a bank robbery. Evidence presented during the trial established that Riley, along with a co-defendant, conspired to commit, and committed, a series of armed robberies that included a liquor store and three banks, in both the Charleston and Georgetown area, in late 2013 and early 2014. The last of the robberies occurred at the Citizen’s Bank in Georgetown, SC, on March 3, 2014. Using surveillance video from the bank, and information gathered from previous robberies, Georgetown Police Department Detectives were able to apprehend both defendants within hours of the Citizen’s bank robbery. At the time of arrest Detectives recovered money stolen from the robbery, some of the clothes worn during the robbery, and the guns used during the robbery, from the car defendants were driving. Riley’s co-defendant Ryan Bonneau, age 47, of Charleston, pled guilty prior to trial, and explained to the jury that, prior to the Citizen’s bank, he and Riley had robbed banks in both Charleston and Georgetown, as well as a liquor store in North Charleston, SC.
Riley was convicted of Conspiring to Commit Armed Bank Robbery (18 U.S.C. §371), Armed Bank Robbery (18 U.S.C. §2113) and Possession of a Firearm in Furtherance of a Crime of Violence (18 U.S.C. §924(c)). The Bank Robbery charge carries up to twenty five years imprisonment, the Conspiracy up to five years, and the Firearm charge carries a mandatory minimum five year consecutive sentence. United States District Court Judge David C. Norton oversaw the trial, and will impose sentence for both defendants at a later date.
The convictions were the result of an investigation conducted by the Georgetown Police Department, Federal Bureau of Investigation and Charleston Police Department. Assistant United States Attorneys Nathan Williams and Emmanuel Ferguson of the Charleston office prosecuted the case.Man Charged with Criminal TrespassRead the Press Release
United States Attorney Brendan V. Johnson announced that a man residing at the Winner Work Release Program in Winner, South Dakota, has been indicted by a federal grand jury for Criminal Trespass.
Steven Nichols, age 44, was indicted on January 21, 2015. He appeared before U.S. Magistrate Judge Mark A. Moreno on January 26, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 1 year in custody and/or a $100,000 fine, 1 year of supervised release, and $25 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about January 16, 2015, Nichols, a non-Indian, knowingly committed the public offense of Entering or Refusing to Leave Property After Notice. He entered the Rosebud Sioux Indian Reservation, knowing he was not privileged to do so.
The charge is merely an accusation and Nichols is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Nichols was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Louisville Physician Pays $515,408.85 for Treating Patients with Misbranded Drugs and Fraudulently Charging MedicareRead the Press Release
LOUISVILLE, Ky. – A Louisville physician pleaded guilty this week in U.S. District Court to a criminal charge of treating patients with misbranded medications and was sentenced to a term of one year probation and ordered to pay restitution in the amount of $176,915.55 by U.S. Magistrate Judge Colin H. Lindsay, announced Acting United States Attorney John E. Kuhn, Jr.
Dr. Mark Heinicke pleaded guilty Tuesday, January 27, 2015, to a criminal information. Dr. Heinicke admitted to purchasing Rituxan, Actemra, Remicaid, Aclasta, Prolia, and Synvisc, among others, from foreign drug distributors based in the United Kingdom, from December 1, 2010, through April 19, 2012. The drugs originated outside the United States and were never approved by the U.S. Food and Drug Administration (FDA) for introduction into the United States. These are infusion and injectable medications used to treat cancer, rheumatoid arthritis, osteoarthritis and osteoporosis. The misbranded drugs were administered under Dr. Heinicke’s supervision.
This case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb and was investigated by the Office of Criminal Investigation for the U.S. FDA.
Further, in a separate civil agreement, Dr. Heinicke agreed to pay $338,493.30 in addition to the court ordered restitution to settle certain claims brought against him by the United States on behalf of the Office of Inspector General of the Department of Health and Human Services (OIG-HHS).
According to the civil settlement agreement, between December 1, 2010, and April 19, 2012, Dr. Heinicke purchased foreign, non-FDA approved products (Rituxan, Actemra, Remicaid, Aclasta, Prolia, and Synvisc) at a cost significantly less than FDA-approved versions. Dr. Heinicke used these foreign, non-FDA approved products on Medicare recipients and did not inform those recipients that they were receiving non-FDA approved products. Dr. Heinicke thereafter submitted or caused to be submitted false claims to Medicare, seeking payment for the products as if they were FDA-approved versions and seeking payment for the administration of these products, in violation of the False Claims Act. Medicare made payments to Dr. Heinicke based upon these claims.
The civil case was handled by Assistant United States Attorney Benjamin Schecter, with assistance from the Office of Criminal Investigations for the FDA.
The claims settled by this civil agreement are allegations only; there has been no determination of liability.
Local Non-Profit Businessman Charged in Alleged Fraud SchemeRead the Press Release
HOUSTON - Jesse Dunn, 56, of Houston, is set to appear in federal court following the return of an eight-count indictment alleging a fraud scheme in connection with a major disaster, announced U.S. Attorney Kenneth Magidson.
The indictment was returned Wednesday, Jan. 28, 2015. Dunn surrendered to federal authorities this morning and is set to make his initial appearance today before U.S. Magistrate Judge George Hanks at 10:00 a.m.
The eight-count indictment alleges one count of participating in a fraud scheme in connection with a major disaster, one count of making a false statement and six counts of false representations in connection with a major disaster.
Dunn was the president of Aldine Community Care Center Inc. (ACCC), a registered Texas non-profit corporation created on April 29, 2004, according to the indictment. He also served as the president or director of several other Texas non-profit corporations, such as Paraclete Church Ministries Inc.
According to the allegations, Dunn falsified numerous documents to the Small Business Administration (SBA) in order to receive disaster relief funds on behalf of ACCC from approximately September 2008 to December 2010.
Hurricane Ike made landfall on the Texas Gulf Coast on Sept. 13, 2008, at which time former President George W. Bush declared the counties in and around Houston a major disaster area under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Shortly thereafter, Dunn allegedly applied for a loan on two of his properties for disaster relief funds.
The indictment alleges Dunn submitted false invoices to the SBA which resulted in the disbursement of $1,300,800 that was to be used for the repair or replacement of real estate, inventory, supplies, machinery and equipment damaged during the declared disaster. However, Dunn allegedly used a significant portion of the proceeds for his own personal use.
He faces up to 30 years in federal prison and a possible $250,000 fine for each of the false representations charges and the fraud scheme in connection with a major disaster. If convicted of the false statement charge, he will also face up to five years in prison and another $250,000 fine.
The investigation leading up to the arrest was conducted by the SBA and the FBI. Assistant U.S. Attorneys Suzanne Elmilady and Andrew Leuchtmann are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Local Merchants Sentenced for Distribution of Designer DrugsRead the Press Release
LITTLE ROCK - Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, and David Downing, Assistant Special Agent in Charge of the Little Rock District Office of the Drug Enforcement Administration (DEA), announced that on January 28, 2015, Amjad Kattom, 37, and Fadi Qtouf, 29, were sentenced after pleading guilty to Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances and Analogues of Controlled Substances. The charges stem from Project Synergy, the largest coordinated law enforcement strike against designer drugs, specifically synthetic cannabinoids (often referred to as “K2” or “Spice”) and synthetic cathinones (often referred to as “bath salts”). Kattom and Qtouf, who are brothers, were two of the lead defendants in the case. Kattom was sentenced to 70 months imprisonment, 3 years of supervised release, a $5,000 fine, and a $100 special assessment. Qtouf was sentenced to 60 months imprisonment, 3 years of supervised release, a $5,000 fine, and a $100 special assessment.
The investigation was conducted by the DEA - Tactical Diversion Squad composed of DEA Special Agents, DEA Diversion Investigators, and Task Force Officers from: Little Rock Police Department, Conway Police Department, Jefferson County Sheriff’s Office, and Pine Bluff Police Department. Also taking part in the investigation was Homeland Security Investigations; the Internal Revenue Service - Criminal Investigation Division including Task Force Officers from Benton Police Department and Pulaski County Sheriff’s Office; with the United States Postal Inspectors and the Little Rock Police Department. Assisting agencies were the Arkansas National Guard; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, and Firearms; the United States Secret Service; the Arkansas State Police and the Arkansas Tobacco Control Board.
For more information on this case, see previous news release at: http://www.justice.gov/usao/are/news/2013/June/Synergy_kattom_complaint_DEA_062613.html
Lexington Man Sentenced to 175 Months for Identity Theft and Tax Fraud ConspiracyRead the Press Release
LEXINGTON, KY - A Lexington, Ky., man, who previously admitted to leading a conspiracy to use stolen identities to file false federal income tax returns, has been sentenced to 175 months in prison.
On Wednesday, U.S. District Judge Danny C. Reeves sentenced 52-year-old David C. Pierce for wire fraud, aggravated identity theft, and conspiring to defraud the United States. Judge Reeves ordered $636,379 to be paid in restitution; of that amount, Pierce and another co-defendant are jointly and severally liable for $107,500. Under federal law, Pierce will have to serve at least 85 percent of his prison sentence.
Pierce previously pleaded guilty and admitted that he devised a scheme to obtain federal income tax refunds by fraud. Pierce accomplished this by creating false tax returns in the names of other members of his conspiracy and other individuals whose identities were stolen and supplied to him by his co-conspirators.
Pierce invented details about the lives of these taxpayers, including where they lived and worked, their incomes, and their expenses. He then filed these returns with the Internal Revenue Service (IRS), requesting that the tax refunds be directed to addresses and bank accounts belonging to him and other members of the conspiracy. During a two-year span, Pierce fraudulently claimed over $3.7 million in tax refunds and received over $600,000 in payments from the Internal Revenue Service.
Three of Pierce’s co-conspirators have also been sentenced for their roles in the conspiracy. Timothy Richard Smith, 51, was sentenced on Wednesday to 70 months imprisonment. Joyce Ann Estes, 44, received 51 months in prison on January 22, 2015. Stephen Lane Woodrum, 24, was sentenced to 48 months imprisonment on January 21, 2015. The final co-conspirator, Dwayne Ray Smith, has pleaded guilty to wire fraud, and aggravated identity theft, and conspiracy to defraud the United States. He is scheduled to be sentenced on February 11, 2015.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Christopher Henry, Special Agent in Charge, Internal Revenue Service, jointly announced the sentences.
The investigation was conducted by the Internal Revenue Service Office of Criminal Investigation. Assistant U.S. Attorneys Andrew T. Boone and Kate K. Smith prosecuted this case on behalf of the federal government.
Leader of painkiller distribution network sentenced to more than 8 years in prisonRead the Press Release
WHEELING, WEST VIRGINIA – Brian Schultz, 38, of Triadelphia, West Virginia, was sentenced today to 97 months in prison for coordinating and operating a Detroit, Michigan to Wheeling, West Virginia prescription painkiller and cocaine distribution ring, United States Attorney William J. Ihlenfeld, II, announced today.The U.S. Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, discovered that Schultz procured large quantities of prescription pills from groups in Detroit, Michigan and Northern Ohio. He then orchestrated an extensive network of associates to redistribute the pills throughout the Ohio Valley.
Schultz admitted his role in distributing oxycodone, cocaine, and buprenorphine in November 2014 when he pled guilty to one count of “Conspiracy to Distribute Schedule II and Schedule III Controlled Substances.” He was also ordered today to forfeit approximately $70,000.00 in U.S. currency and to pay a money judgment of $30,000.00.
Additionally, Buddy Robert Salem, Jr., 33, of Wheeling, was sentenced today to 30 months in prison. Salem routinely sold oxycodone pills provided by Schultz. Salem was discovered in possession of oxycodone in January 2014. He pled guilty in June 2014 to one count of “Aiding and Abetting the Possession with Intent to Distribute Oxycodone.”
Assistant U.S. Attorney John Parr prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Leader of Violent Drug Distribution Ring Sentenced to More Than 20 Years in PrisonRead the Press Release
More Than 30 Defendants Charged and Convicted During Investigation
Brice N. Marchbanks a/k/a Bear, 32, of Nashville, Tennessee, was sentenced yesterday to more than 20 years in federal prison for his role as the leader of a long- running, violent crime and drug distribution conspiracy, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Marchbanks was convicted of all charges against him, including drug conspiracy, maintaining a drug house, possessing firearms in furtherance of drug crimes, and distributing drugs to a 14 year-old, after a week-long jury trial in September 2014. Senior Judge John T. Nixon sentenced Marchbanks to the maximum allowed under the federal sentencing guideline range, to reflect the seriousness of the crimes and to protect the public.
Marchbanks’ drug operation was uncovered as part of an investigation into various Rollin’ 60 Crips gang members who were committing armed robberies of suspected drug dealers, under the belief that the crimes would not be investigated fully and that the targeted victims would not cooperate with law enforcement.
According to the proof at trial, Marchbanks was the target of such a robbery by other gang members and was in fact shot during that robbery. When questioned by police, Marchbanks falsely claimed that the robbery was not drug-related. The investigation, however, showed that Marchbanks was running a drug house in the Creekwood Drive area of Nashville and was using armed minors to guard the house.
The trial also included proof that Marchbanks wrongly suspected another Rollin’ 60 Crips gang member of having participated in that robbery, and solicited the murder of that person. A 15 year- old and a person who is still unidentified then shot the gang member whom they suspected. The wounded gang member survived and the investigation determined that he was not involved in the robbery of Marchbanks.
Marchbanks is the final defendant to be tried in the case, which began in 2009 and resulted in more than 30 defendants being charged with drug crimes, firearms and other offenses. All of the defendants in this case have now been convicted, including more than five gang members who held the status of “OG” (“Original Gangsta”), the highest rank available in Tennessee.
The investigation was conducted by the FBI, the ATF and the Metropolitan Nashville Police Department. Assistant United States Attorneys Sunny A.M. Koshy and Louis Crisostomo prosecuted the case.
Leader of Hostage Taking Conspiracy Gets Life in Federal PrisonRead the Press Release
HOUSTON – The leader and six others involved in a hostage taking conspiracy that left victims in deplorable conditions have all been ordered to federal prison as a result of their criminal actions, announced United States Attorney Kenneth Magidson
A Houston federal jury convicted Mexican national Samuel Castro-Flores, aka “Chame” or “Chamuco,” 42, March 6, 2014, on 18 counts to include conspiracy to commit hostage taking, hostage taking and other charges involving smuggling aliens and firearms. The jury found him guilty of one count of conspiracy to commit hostage taking, five counts of hostage taking, one count of conspiracy to harbor illegal aliens, five counts of harboring illegal aliens, one count of being an alien illegally present in the U.S., one count of conspiracy to transport illegal aliens, two counts of transportation of illegal aliens, as well as using and carrying a firearm in furtherance of a crime and brandishing that firearm. The verdict was returned following a two-week trial and only an hour of deliberation. At the time he committed these crimes Castro-Flores was living illegally in the United States and was also on supervised release for a 2009 federal alien smuggling conviction.
Today, U.S. District Judge Gray Miller, who presided over the trial, sentenced Castro-Flores, along with six others also convicted in relation to the conspiracy. Castro-Flores was ordered to serve life in prison plus an additional seven years for brandishing a firearm during the commission of the hostage taking offenses. Judge Miller also revoked his supervised release from the 2009 case and ordered he serve an additional two years in prison for that offense. Six other defendants were also sentenced today. Virgilio De La Torre-Santana was ordered to serve 360 months, while Joshua Andrew Carbajal received a 240-month-term of imprisonment. Jobs Solis-Benito, Emmanuel Rivera-Abarca, Adauto Aguilar-Lara and Marco Garcia-Perez were each sentenced to respective terms of 97, 38, 36 and 31 months in federal prison. With the exception of Carbajal, who is from Alice, the remaining defendants are illegal aliens and expected to face deportation proceedings following release from prison.
At the hearing today, the court also heard from a female victim who was sexually abused by members of the conspiracy while being held hostage by Castro-Flores and his co-defendants. In handing down the sentences, Judge Miller noted the deplorable conditions to which the alien hostages were subjected as well as the large scope of the hostage taking and alien smuggling organization led by Castro-Flores.
Judge Miller also ordered all defendants today to pay restitution in the amount of $38,130, which represented the amount of money the group extorted from the families and friends of the alien hostages.
The charges in the case stem from an investigation that began in mid-August 2012. Two illegal aliens had been smuggled into the country and their family members began to receive extortion calls demanding money for their release.
On Sept. 7, 2012, agents executed a search warrant at a residence on Amblewood Drive in Houston and encountered 26 illegal aliens, at least two of whom were juveniles, being held hostage inside the residence. According to the victim aliens, upon arrival in Houston they were forced to undress and informed they had been “sold” and would not be released until family members paid for their release. Victims reported they were held in their underwear, in locked rooms with boarded up windows and in deplorable conditions. The victims also indicated they were guarded by men constantly armed with a handgun. Some victims said they were threatened with harm or death if payment was not received.
The evidence at trial showed Castro-Flores was the leader of the organization which held these aliens hostage and extorted their families for thousands of dollars before their release. The evidence also demonstrated Castro-Flores took extensive steps to avoid being detected by law enforcement. For example, he asked witnesses to help him present a false story that he was simply a repairman who happened to be at the Amblewood residence on one occasion to fix the air-conditioning.
An air-conditioning repair company owner in Houston reported that he once employed Castro-Flores as a helper in his business but fired him after learning he was involved in smuggling aliens. He also testified Castro-Flores later tried to use him to present a false impression to law enforcement that he was only involved in the air-conditioning business.
Prior to committing the offenses in this case, Castro-Flores was convicted of conspiracy to harbor aliens in the Southern District of Texas in July 2009 and subsequently deported in January 2011. He re-entered the United States after his deportation and was arrested in this case on Dec. 5, 2012, in Houston. Before his trial, Castro-Flores pleaded guilty to illegal re-entry, one of the charges from the indictment in the current case.The investigation leading to the charges in this case was conducted by Homeland Security Investigations in Houston, Washington, D.C., and Virginia along with the Houston Police Department. Assistant U.S. Attorneys Casey N. MacDonald and Arthur R. Jones prosecuted the case.
Lapwai Man Sentenced for Making False Statements to a Federal Official and Failing to AppearRead the Press Release
COEUR D'ALENE - Delbert Daniel George, 31, of Lapwai, Idaho, was sentenced today to 57 months in prison followed by three years of supervised release for making false statements to a federal official and failing to appear in court, U.S. Attorney Wendy J. Olson announced. Visiting U.S. District Judge Fremming Nielsen ordered George to spend 36 months in prison for lying to federal agents and a consecutive 21 months for George’s failure to appear for sentencing on that charge.
“The consecutive sentences demonstrate that failing to appear is a serious matter,” said Olson. “Respect for the law, and for the courts, are the cornerstone of a civilized society. My office will continue to prosecute those who obstruct justice or fail to abide by the court's directives.”
The case was investigated by Federal Bureau of Investigation (FBI) and Nez Perce Tribal Police.
LaplaceWoman Sentenced for Misprision of a Felony in Aftermath of BP Oil SpillRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MECHELLE STANTON WOODS, age 44, of Laplace, was sentenced today for her role in a conspiracy to defraud the Gulf Coast Claims Facility (“GCCF”) in the aftermath of the BP oil spill.
U.S. District Judge Nannette Jolivette Brown sentenced WOODS to one year probation.
The GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion in the Gulf of Mexico. The GCCF required individuals to verify loss of income. According to court documents, WOODS assisted with preparing and electronically submitting fraudulent claim forms, for her co-conspirators who recruited claimants, falsely representing the claimants were employed in the commercial fishing industry at the time of the oil spill. WOODS knew the claims were fraudulent, but she did not report it to law enforcement.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (“NCDF”), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected], or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U. S. Attorneys Julia K. Evans and Theodore R. Carter, III were in charge of the prosecution.
Kankakee Man Pleads Guilty to Marijuana Growing Operation, Filing False Tax Returns and Making False Statement to BankRead the Press Release
Urbana, Ill. – A Kankakee, Ill., man, David Aaron Neblock, 37, entered pleas of guilty today to possession with intent to distribute more than 100 marijuana plants; filing false income tax returns; and making a false statement to a bank, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. At today’s hearing, U.S. Magistrate Judge David G. Bernthal granted the government’s motion for Neblock’s detention and the defendant was taken into the custody of the U.S. Marshals Service. Sentencing is scheduled for June 1, 2015, before U.S. District Judge Sue E. Myerscough in Springfield.
According to the factual basis set forth in the plea agreement, in July 2012, agents of the Kankakee Area Metropolitan Group (KAMEG) executed a search warrant at a commercial building at 364 S. Schuyler Ave., Bradley, Ill. Inside the building, agents recovered 759 marijuana plants in three rooms. The plants, at various stages of growth, were grown under multiple artificial light ballasts, with electric timers that regulated fans, lights and irrigation systems that supplied water and growth enhancement nutrients to the plants. Agents would testify that the approximate value of the 759 hydroponic cannabis plants is $3,036,000.
In addition, Neblock admitted that he underreported his income for tax years 2010, 2011, and 2012, for an estimated total of $236,936, with tax due and owing of $52,128. Further, Neblock admitted that in March 2009, he submitted a false home loan application requesting $157,183 to purchase a residence at 3163 River Road, Kankakee. In the application, Neblock falsely claimed that he was employed at various businesses and had received an inheritance.
According to terms of the plea agreement, the government and the defendant agree that the appropriate sentence is a term of imprisonment between 60 and 71 months. Further, Neblock agrees to pay the $52,128 in additional tax due and owing to the Internal Revenue Service, and agrees to the forfeiture of property, 3163 River Road, Kankakee, Ill, currently subject to a complaint for forfeiture in proceedings in circuit court in Kankakee County, as property that was used to facilitate or was paid for by proceeds of illegal activity.
The case is being prosecuted by Supervisory Assistant U.S. Attorney Ronda H. Coleman. The charges are the result of investigation by Kankakee Area Metropolitan Group, “KAMEG”; Illinois State Police; Internal Revenue Service Criminal Investigation; and the Federal Deposit Insurance Corporation, Office of Inspector General, with assistance from the Kankakee State’s Attorney’s Office.
Jury Convicts Man of Transporting Methamphetamine from Texas to TulsaRead the Press Release
TULSA, Okla.—Following a three-day trial, a federal jury found Alejandro Cabrera Charre, 23, guilty of conspiring to distribute and possess with intent to distribute methamphetamine, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The Superseding Indictment alleged that on October 18, 2014, Alejandro Charre and his uncle, Juan Pablo Charre, transported approximately four pounds of methamphetamine by car from Texas to Tulsa. Following a traffic stop, Tulsa Police Department officers discovered the methamphetamine hidden in a secret compartment in their vehicle.
Juan Pablo Charre pleaded guilty on January 5, 2015, to one count of possessing over 50 grams of methamphetamine with intent to distribute. Alejandro Charre went to trial on January 26, 2015. Trial testimony revealed that Alejandro Charre conspired with his uncle to bring the four pounds of methamphetamine to Tulsa. The trial testimony further revealed that the value of the methamphetamine was at least $46,000. On January 28, 2015, the jury found Alejandro Charre guilty.
This case was investigated by the Tulsa Police Department’s Special Investigations Division and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Neal C. Hong and Timothy L. Faerber.
(U.S. v. Alejandro Cabrera Charre)
Jenison Woman Pleads Guilty to Wire Fraud SchemeRead the Press Release
Renata Nicole Annese stole over $800,000.00 in a credit card fraud scheme
GRAND RAPIDS, MICHIGAN – Renata Nicole Annese, 39, of Jenison, Michigan, pled guilty on June 29 in U.S. District Court for the Western District of Michigan to one count of wire fraud as detailed in an indictment returned on November 12, 2014, U.S. Attorney Patrick Miles announced today. Annese agreed that she will pay restitution of approximately $872,000.00 and that she will forfeit her equity interest in her personal residence in Jenison, Michigan, because she used the fraud to make her mortgage payments.
“Deterring fraudulent conduct through vigorous prosecution of those who take advantage of others remains an important priority of this office. The repeated use of interstate wire transmissions to steal nearly a million dollars and to contribute to this victim’s decision that he had to sell his business makes this case especially appropriate for federal prosecution,” said U.S. Attorney Miles.
From October 2006 until April 2013, Annese used interstate wires to defraud the former owner of the Sleep Inn hotel in Allendale, Michigan, of nearly a million dollars. Annese did so by regularly accessing the Internet so that she could edit data related to the hotel’s credit card sales. Annese then inserted her own personal credit card and bank debit card numbers on the payment side of many of those transactions. This caused the hotel customers’ cards to be charged, but directed the customers’ banks to send the payments to Annese’s credit and debit cards, instead of to the hotel’s bank account. Defendant concealed her fraud by pairing her credit or bank debit card numbers with names and charge amounts actually associated with real hotel customers. This made it appear as if those customers were receiving a credit back to their cards, when in reality Annese was receiving the payments. The former owner of Sleep Inn sold the hotel in 2013 because of its struggling financial performance and did not learn of Annese’s fraud until shortly after the sale.
“Defendant Annese repeatedly used the Internet to siphon funds intended for her employer and divert them illegally to her own bank accounts,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “As reflected in this case, there are always very real victims on the other end of financial fraud crimes. The FBI remains committed to deterring this type of conduct and bringing justice to those who perpetrate fraudulent financial schemes in violation of federal law.”
Annese will be sentenced on May 18, 2015, at which time she will face up to 20 years’ imprisonment and a fine of up to $250,000.00.
The Federal Bureau of Investigation is conducting the investigation and Assistant United States Attorney Ronald M. Stella is prosecuting the case.
Jenison Woman Pleads Guilty to Wire Fraud SchemeRead the Press Release
Renata Nicole Annese stole over $800,000.00 in a credit card fraud scheme
GRAND RAPIDS, MICHIGAN – Renata Nicole Annese, 39, of Jenison, Michigan, pled guilty on June 29 in U.S. District Court for the Western District of Michigan to one count of wire fraud as detailed in an indictment returned on November 12, 2014, U.S. Attorney Patrick Miles announced today. Annese agreed that she will pay restitution of approximately $872,000.00 and that she will forfeit her equity interest in her personal residence in Jenison, Michigan, because she used the fraud to make her mortgage payments.
“Deterring fraudulent conduct through vigorous prosecution of those who take advantage of others remains an important priority of this office. The repeated use of interstate wire transmissions to steal nearly a million dollars and to contribute to this victim’s decision that he had to sell his business makes this case especially appropriate for federal prosecution,” said U.S. Attorney Miles.
From October 2006 until April 2013, Annese used interstate wires to defraud the former owner of the Sleep Inn hotel in Allendale, Michigan, of nearly a million dollars. Annese did so by regularly accessing the Internet so that she could edit data related to the hotel’s credit card sales. Annese then inserted her own personal credit card and bank debit card numbers on the payment side of many of those transactions. This caused the hotel customers’ cards to be charged, but directed the customers’ banks to send the payments to Annese’s credit and debit cards, instead of to the hotel’s bank account. Defendant concealed her fraud by pairing her credit or bank debit card numbers with names and charge amounts actually associated with real hotel customers. This made it appear as if those customers were receiving a credit back to their cards, when in reality Annese was receiving the payments. The former owner of Sleep Inn sold the hotel in 2013 because of its struggling financial performance and did not learn of Annese’s fraud until shortly after the sale.
“Defendant Annese repeatedly used the Internet to siphon funds intended for her employer and divert them illegally to her own bank accounts,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “As reflected in this case, there are always very real victims on the other end of financial fraud crimes. The FBI remains committed to deterring this type of conduct and bringing justice to those who perpetrate fraudulent financial schemes in violation of federal law.”
Annese will be sentenced on May 18, 2015, at which time she will face up to 20 years’ imprisonment and a fine of up to $250,000.00.
The Federal Bureau of Investigation is conducting the investigation and Assistant United States Attorney Ronald M. Stella is prosecuting the case.
Japanese Man Sentenced for Attemtping to Export Sensitive Military EquipmentRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Iteru Masui, 30, of Japan, who was convicted of attempting to export and send from the United States AN/PRC-152 radios, contrary to the Arms Export Control Act, was sentenced to 30 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that between April 30 2013 and May 9, 2013, Masui purchased what he believed were two AN/PRC-152 handheld military radios manufactured by the Harris Corporation in Rochester, NY. The radio is controlled for export by the United States Munitions List, and is not available for purchase by the public. The defendant’s effort to illegally export the radios was discovered and then stopped by special agents of the Department of Homeland Security.
The sentencing is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Johnston in Great Falls on January 29, 2015, and entering pleas of Not Guilty were:
- JACK ANTHONY KEGG, a 46-year-old resident of Alexandria, Minnesota, appeared on charges of possession of child pornography. If convicted of the most serious charge contained in the indictment, KEGG faces 20 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Montana Division of Criminal Investigation. PACER Case Reference: 15-4
Appearing before U.S. Magistrate Judge Ostby in Billings on January 28, 2015, and entering pleas of Not Guilty were:
- LAWRENCE ALEX FOSTER, JR., a 62-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, FOSTER faces 40 years in prison, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference: 15-4
- SELENA LITTLE OLD MAN., a 25-year-old resident of Lame Deer, appeared on charges of assault resulting in serious bodily injury. If convicted of the most serious charge contained in the indictment, LITTLE OLD MAN faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference: 15-7
Appearing before U.S. Magistrate Judge Lynch in Missoula on January 27, 2015, and entering pleas of Not Guilty were:
- DAN CALVERT WALLEN, a 54-year-old resident of Big Fork, appeared on charges of unlawful taking of a threatened species. If convicted of the most serious charge contained in the indictment, WALLEN faces 6 months in prison and $25,000 in fines. The case was investigated by U.S. Fish and Wildlife Service. PACER Case Reference: 14-45
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hugo Man Sentenced to 39 Months for Assault in Indian CountryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that TRAVIS PAUL LINDSEY, age 24, of Hugo, Oklahoma, was sentenced to 39 months imprisonment, followed by 3 years of supervised release for Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1152. LINDSEY was also ordered to pay $16,087.20 in restitution.
The charges arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The defendant pled guilty in November, 2014.
The Information alleged that on or about October 4, 2014, within the Eastern District of Oklahoma, within Indian country, the defendant, did knowingly and intentionally assault T.B., an Indian, with intent to cause bodily harm, by striking him with a dangerous weapon.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Assistant United States Attorney Dean Burris represented the United States.