Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
28 January 2015
Four Members of Loma Linda Family Arrested on Federal Charges Related to Embezzlement from Labor UnionRead the Press Release
RIVERSIDE, California – Four former and current officials of an independent labor union in Colton were arrested this morning on federal charges related to a scheme to embezzle funds from the union’s health plan.The four defendants, who were named in a 40-count indictment returned by a federal grand jury on January 21, are charged with conspiring to embezzle from the health plan for the United Industrial and Service Workers of America Local 101 (UISWA), which serves members in the Inland Empire.
Over the course of eight years, the defendants allegedly misappropriated a total of approximately $900,000 in union funds.
Those arrested this morning, all residents of Loma Linda, are:
John S. Romero, 68, the former president of USIWA;
Evelyn Romero, 66, John S. Romero’s wife, who succeeded her husband as president of USIWA and served in that position until June 2014;
John J. Romero, 50, who is the son of John S. and Evelyn Romero and who is the former secretary/treasurer of USIWA; and
Danae Romero, 37, who is the daughter of John S. and Evelyn Romero and who served as an officer in the union.
All four defendants are expected to be arraigned on the indictment this afternoon in United States District Court.
The indictment charges the defendants with conspiring to embezzle assets from the UISWA Health Plan, which was a program intended to provide healthcare benefits to union members.
The indictment also includes charges of knowingly filing false annual reports with the U.S. Department of Labor that failed to disclose more than $100,000 in UISWA revenues and disbursements, willfully misusing the assets from both the UISWA and UISWA Health Plan, and knowingly and willfully permitting another Romero-family member who had previously been convicted of a felony narcotics violation to serve as an officer and employee of the UISWA.
The indictment alleges that some of the Health Plan's bank accounts were held in the name of a construction company associated with the Health Plan's third party administrator, through which the Romero family received payments without the knowledge of consent of the Health Plan's second trustee. It is further alleged that the Romero family controlled the Health Plan's reserve fund accounts and used those assets for their personal benefit.
The defendants family allegedly used union funds to pay personal and union-related legal fees and judgments levied against them, systematically making payments of Health Plan assets to a separate business entity they operated under false pretenses, fund a payroll account that had been established using the name and employer identification number of a previous labor union they had been in control of that had since terminated operations, pay off a car loan for a vehicle belonging to another Romero family member, and recirculating assets from the Health Plan's reserve fund to its operating account to cover the insurance expenses for their own healthcare benefits that were billed to the union.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
If they are convicted of the charges in the indictment, all four defendants would face decades in federal prison.
The indictment is the result of a joint investigation conducted by the U.S. Department of Labor - Office of Inspector General, the U.S. Department of Labor - Employee Benefits Security Administration, and the U.S. Department of Labor - Office of Labor Management Standards.
Four Hunters Sentenced for Violating Migratory Bird Act in Ellis CountyRead the Press Release
WICHITA, KAN. - Four hunters were sentenced Wednesday for violating the federal Migratory Bird Treaty Act when they took more than 260 mourning doves during a hunt in Ellis County, U.S. Attorney Barry Grissom said today.
Each of the four pleaded guilty to one count of violating the Migratory Bird Treaty Act by exceeding the daily bag limit for mourning doves. They were sentenced to two years unsupervised probation, a $1,000 fine and $1,000 in restitution. In addition, they are prohibited from hunting, fishing, trapping or accompanying others during those activities for two years.
Sentenced were:
Harold C. Amrein, 59, Ellis, Kan.
Randy L. Amrein, 38, Fremont, Neb.
Morris H. Russell, 48, Omaha, Neb.
Tyrel S. Simpson, 33, Council Bluffs, Iowa
In their pleas, they admitted the crimes took place Sept. 2, 2014, during a hunt in the opening weekend of dove season. Following the hunt, a warden with the Kansas Department of Wildlife, Parks and Tourism found them in possession of more than 260 mourning doves. The daily bag limit for mourning doves is 15.
Grissom commended the U.S. Fish and Wildlife Service, the Kansas Department of Wildlife, Parks and Tourism and Assistant U.S. Attorney Matt Treaster for their work on the case.
Four Charged in Grant Fraud SchemeRead the Press Release
LAS VEGAS, Nev. – Four persons have been charged with conspiracy and fraud for obtaining money from small business owners for grant funding and services that they never provided or intended to provide, announced U.S. Attorney Daniel G. Bogden for the District of Nevada and Laura A. Bucheit, Special Agent in Charge of the FBI for Nevada.
Jason Demko, 38, Lorraine Riddiough, 66, Lissette Alvarez, 27, all of Las Vegas, and Mark Jones, 32, of Barberton, Ohio, are charged in a criminal indictment with one count of conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, and criminal forfeiture. Riddiough, Alvarez, and Jones were arrested in Las Vegas yesterday. They appeared yesterday before Magistrate Judge Ferenbach and pleaded not guilty to the charges, and were released on personal recognizance bonds pending a March 16 trial date. Demko is scheduled to appear before U.S. Magistrate Judge Cam Ferenbach at 3:00 p.m. today for an arraignment.
“Unfortunately, advance fee fraud schemes are very common,” said U.S. Attorney Bogden. “The con artist will ask for money up front before any tangible service or product is provided, and it will be very difficult to get your money back once you have turned it over to the scammers.”
“These arrests emphasize the FBI's continued commitment to investigate financial crimes,” said Special Agent in Charge Bucheit. “It also serves as a reminder for consumers to protect themselves, and remember if it seems too good to be true, it almost always is."
According to the indictment and other court records, from about January 2013 to February 2014, the defendants allegedly made false and fraudulent representations and promises to small business owners to persuade and induce them to pay initial fees, usually between $2,500 and $5,000 for goods and services they thought would help them obtain grants for their businesses. The business owners were told that the total cost for obtaining a grant was between $10,000 and $15,000, depending on the total amount of funding requested, and that the remaining fees would not be charged until the owners received 100 percent of the grant funding. Among other things, the defendants falsely stated that they represented a company named Foundation Processing Center in Wilmington, Del., when in fact, they represented JCD Business Services in Las Vegas; falsely stated that only certain clients had qualified for grants, when in fact anyone who paid the fees were qualified by the defendants; and stated that they had obtained grants for other clients, when in fact they had not done so. The defendants also re-solicited clients for additional fees, including business plans, when they knew that the plans were not going to assist the clients in obtaining any grants. The defendants knew that the true purpose of their solicitations was to obtain funds to personally enrich themselves.
If convicted, the defendants face a maximum of 20 years in prison and a $250,000 fine on all counts.
The case is being investigated by the FBI, and prosecuted by Assistant U.S. Attorney Sarah E. Griswold.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Fountain, Colorado Man Sentenced for Defrauding the Department of Veterans Affairs and the Social Security AdministrationRead the Press Release
DEFENDANT RECEIVED 100 PERCENT DISABILITY BENEFITS FROM BOTH AGENCIES WHILE WORKING
DENVER – Albert Kenneth Lender, age 62, of Fountain, Colorado, was sentenced yesterday by U.S. District Court Judge Philip A. Brimmer to serve three months in federal prison, followed by three years on supervised release for two counts of making false statements to the government, the U.S. Attorney’s Office, the Veterans Affairs Office of the Inspector General and the Social Security Administration Office of the Inspector General announced. Lender was also order to pay restitution to the government of over $130,000, the amount of loss, plus interest. He was ordered to report to a Bureau of Prisons facility within 15 days of designation.
Lender was indicted by a federal grand jury in Denver on June 17, 2014. He pled guilty on August 22, 2014. He was sentenced on January 27, 2015.
According to the stipulated facts contained in the plea agreement, Lender received benefits at a 100 percent disability rating from the Department of Veterans Affairs (VA) in 1991. That same year, he also began receiving benefits at a 100 percent disability rating from the Social Security Administration (SSA). Both agencies advised Lender that should his status change, he was to notify the agencies immediately. He also received follow up letters reinforcing that advisement.
Prior to January 2005, Lender caused Zac Towne Paint & Quarter Horses (Zac Towne) to be formed, listing his wife as the sole proprietor. Thereafter, he negotiated contracts on behalf of Zac Towne, including one with the City of Fountain for landscaping, ground maintenance, snow removal, and related services. He also worked to secure other contracts. Once the contracts were awarded, Lender performed the duties to fulfill the contracts, including the landscaping, ground maintenance and snow removal. He also hired others to assist him.
Based on Lender’s false representations and material omissions to both the VA and the SSA, Lender received more than $130,000 in disability benefits for which he was ineligible.
This case was investigated by the Department of Veterans Affairs Office of the Inspector General, and the Social Security Administration Office of the Inspector General.
The case was prosecuted by Assistant U.S. Attorney Patricia Davies.
Former Owner of D&D Equipment & Supply Sentenced to 24 Months in Prison and Pay over $756,000 in Restitution for FraudRead the Press Release
Oklahoma City, Oklahoma – DEAN ELVIN STIGER, 67, of Oklahoma City, has been sentenced to twenty-four months in federal prison and ordered to pay $756,922.05 in restitution for his role in defrauding UE Manufacturing through fictitious freight invoices, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
A grand jury indicted Stiger on July 17, 2013, on sixteen counts of wire fraud and three counts of money laundering. According to the indictment, Stiger owned and operated D&D Equipment & Supply, which provided freight services to businesses in the oil and gas industry, including UE Manufacturing. Stiger and Kevin Sheldon, a purchasing agent at UE Manufacturing, caused that company to pay more than $500,000 in fictitious D&D freight invoices from 2009 to the end of 2012. They met periodically at a bank to divide the proceeds of the crime. The indictment also alleged that Stiger used some of the proceeds in large banking transactions, including the payment of a monthly mortgage in the amount of $20,004.05 and the purchase of a $58,000.00 Cadillac Escalade.
Stiger pled guilty to one count of fraud and one count of money laundering on October 30, 2013. His health and other issues delayed his sentencing.
Yesterday, Chief U.S. District Judge Vicki Miles-LaGrange ordered Stiger to serve 24 months in the custody of the Federal Bureau of Prisons, to be followed by two years of supervised release. He was also ordered to pay $756,922.05 to UE Manufacturing. The court had previously entered an additional order of forfeiture against him in the amount of $436,461.03.
Kevin Sheldon pled guilty to wire fraud on August 16, 2013. His sentencing is pending.
This sentence is the result of an investigation conducted by Internal Revenue Service Criminal Investigation, the United States Secret Service, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Scott E. Williams.
Former Los Alamos National Laboratory Scientist Sentenced to Prison for Atomic Energy Act ViolationsRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Damon P. Martinez for the District of New Mexico, Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division announced that Pedro Leonardo Mascheroni, a scientist formerly employed at the Los Alamos National Laboratory (LANL), was sentenced this morning for Atomic Energy Act and other violations relating to his communication of classified nuclear weapons data to a person he believed to be a Venezuelan government official.
Mascheroni, 79, a naturalized U.S. citizen from Argentina, was sentenced in Albuquerque, New Mexico, by U.S. District Judge William P. Johnson to 60 months in federal prison followed by the three years of supervised release. His wife, Marjorie Roxby Mascheroni, 71, previously was sentenced in August 2014 to a year and a day of imprisonment followed by three years of supervised release for her conviction on conspiracy and false statement charges.
“The public trusts that the government will do all it can to safeguard Restricted Data from being unlawfully transmitted to foreign nations not entitled to receive it,” said Assistant Attorney General Carlin. “We simply cannot allow people to violate their pledge to protect the classified nuclear weapons data with which they are entrusted. Today’s sentencing should leave no doubt that counterespionage investigations remain one of our most powerful tools to protect our national security. I thank the many people who worked to bring these convictions to fruition.”
“Our laws are designed to prevent ‘Restricted Data’ from falling into the wrong hands because of the potential harm to our national security,” said U.S. Attorney Martinez. “Those who work at our country’s national laboratories are charged with safeguarding that sensitive information, and we must and will vigorously prosecute anyone who compromises our nation’s nuclear secrets for profit. I commend the many agents, analysts and prosecutors who worked tirelessly to bring about the convictions in this case. I also thank the Los Alamos National Laboratory for cooperating fully in the investigation and prosecution of this case.”
“This case demonstrates the consequences that result when those charged with protecting our nation’s secrets violate the trust placed in them by the American people,” said Assistant Director Coleman. “Safeguarding classified material is vital to the public interest, and the FBI will continue to hold accountable those who knowingly and willfully threaten the national security of the United States through the unauthorized disclosure of protected information.”
“America trusts those who work with our country's classified information to keep it away from those who would harm us. Anyone who betrays that trust for his own gain puts our nation's security up for auction, and the price for us all could be very high indeed,” said Special Agent in Charge Lee. “Since World War II, the FBI has worked tirelessly to protect U.S. nuclear weapons data, and we are proud of our investigation in this case.”
Mascheroni, a Ph.D. physicist, worked as a scientist at LANL from 1979 to 1988 and held a security clearance that allowed him access to certain classified information, including “Restricted Data.” Roxby Mascheroni worked at LANL between 1981 and 2010, where her duties included technical writing and editing. She also held a security clearance at LANL that allowed her access to certain classified information, including “Restricted Data.” As defined under the Atomic Energy Act, “Restricted Data” is classified information concerning the design, manufacture or use of atomic weapons; the production of special nuclear material; or the use of special nuclear material in the production of energy.
Mascheroni and Roxby Mascheroni were indicted in September 2010 and charged with conspiracy to communicate and communicating Restricted Data to an individual with the intent to secure an advantage to a foreign nation, as well as conspiracy to convey and conveying classified information. The indictment also charged Mascheroni with concealing and retaining U.S. records with the intent to convert them to his own use and gain, and both defendants with making false statements.
Mascheroni pleaded guilty in June 2013, to counts seven and eight of the indictment, charging him with conversion of government property and retention of U.S. records, and counts 10 through 15, charging him with making false statements. Mascheroni also pleaded guilty to a felony information charging him with two counts of communication of Restricted Data and one count of retention of national defense information.
In entering his guilty plea, Mascheroni admitted that in November 2008 and July 2009, he unlawfully communicated Restricted Data to another individual with reason to believe that the data would be utilized to secure an advantage to Venezuela. He also admitted unlawfully converting Department of Energy information to his own use and selling the information in November 2008 and July 2009, and failing to deliver classified information relating to the United States’ national defense to appropriate authorities and instead unlawfully retaining the information in his home. Finally, Mascheroni admitted making materially false statements to the FBI when he was interviewed in October 2009.
Roxby Mascheroni pleaded guilty in June 2014, to count six of the indictment, charging her with conspiracy, and counts 16 through 22, charging her with making false statements. She also pleaded guilty to a felony information charging her with conspiracy to communicate Restricted Data. Roxby Mascheroni admitted that between October 2007 and October 2009, she conspired with Mascheroni to convey Restricted Data belonging to the United States to another person with reason to believe that the information would be used to secure an advantage to Venezuela. She also admitted making materially false statements to the FBI when she was interviewed in October 2009.
The indictment in this case did not allege that the government of Venezuela or anyone acting on its behalf sought or was passed any classified information, nor did it charge any Venezuelan government officials or anyone acting on their behalf with wrongdoing. The indictment also did not allege any wrongdoing by other individuals working at LANL.
This investigation was conducted by the FBI’s Albuquerque Division with assistance from the Department of Energy and LANL. The prosecution was handled by Senior Counsel Kathleen Kedian and Trial Attorney David Recker of the Counterespionage Section of the Justice Department’s National Security Division and Assistant U.S. Attorneys Fred J. Federici, Dean Tuckman and Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico.
Former Los Alamos National Laboratory Scientist Sentenced to Prison for Atomic Energy Act ViolationsRead the Press Release
ALBUQUERQUE – Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Damon P. Martinez for the District of New Mexico, Assistant Director Randall C. Coleman of the FBI’s Counterintelligence Division and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division announced that Pedro Leonardo Mascheroni, a scientist formerly employed at the Los Alamos National Laboratory (LANL), was sentenced this morning for Atomic Energy Act and other violations relating to his communication of classified nuclear weapons data to a person he believed to be a Venezuelan government official.
Mascheroni, 79, a naturalized U.S. citizen from Argentina, was sentenced in Albuquerque, New Mexico, by U.S. District Judge William P. Johnson to 60 months in federal prison followed by the three years of supervised release. His wife, Marjorie Roxby Mascheroni, 71, previously was sentenced in August 2014 to a year and a day of imprisonment followed by three years of supervised release for her conviction on conspiracy and false statement charges.
“The public trusts that the government will do all it can to safeguard Restricted Data from being unlawfully transmitted to foreign nations not entitled to receive it,” said Assistant Attorney General Carlin. “We simply cannot allow people to violate their pledge to protect the classified nuclear weapons data with which they are entrusted. Today’s sentencing should leave no doubt that counterespionage investigations remain one of our most powerful tools to protect our national security. I thank the many people who worked to bring these convictions to fruition.”
“Our laws are designed to prevent ‘Restricted Data’ from falling into the wrong hands because of the potential harm to our national security,” said U.S. Attorney Martinez. “Those who work at our country’s national laboratories are charged with safeguarding that sensitive information, and we must and will vigorously prosecute anyone who compromises our nation’s nuclear secrets for profit. I commend the many agents, analysts and prosecutors who worked tirelessly to bring about the convictions in this case. I also thank the Los Alamos National Laboratory for cooperating fully in the investigation and prosecution of this case.”
“This case demonstrates the consequences that result when those charged with protecting our nation’s secrets violate the trust placed in them by the American people,” said Assistant Director Coleman. “Safeguarding classified material is vital to the public interest, and the FBI will continue to hold accountable those who knowingly and willfully threaten the national security of the United States through the unauthorized disclosure of protected information.”
“America trusts those who work with our country's classified information to keep it away from those who would harm us. Anyone who betrays that trust for his own gain puts our nation's security up for auction, and the price for us all could be very high indeed,” said Special Agent in Charge Carol K.O. Lee of the FBI Albuquerque Division. “Since World War II, the FBI has worked tirelessly to protect U.S. nuclear weapons data, and we are proud of our investigation in this case.”
Mascheroni, a Ph.D. physicist, worked as a scientist at LANL from 1979 to 1988 and held a security clearance that allowed him access to certain classified information, including “Restricted Data.” Roxby Mascheroni worked at LANL between 1981 and 2010, where her duties included technical writing and editing. She also held a security clearance at LANL that allowed her access to certain classified information, including “Restricted Data.” As defined under the Atomic Energy Act, “Restricted Data” is classified information concerning the design, manufacture or use of atomic weapons; the production of special nuclear material; or the use of special nuclear material in the production of energy.
Mascheroni and Roxby Mascheroni were indicted in September 2010 and charged with conspiracy to communicate and communicating Restricted Data to an individual with the intent to secure an advantage to a foreign nation, as well as conspiracy to convey and conveying classified information. The indictment also charged Mascheroni with concealing and retaining U.S. records with the intent to convert them to his own use and gain, and both defendants with making false statements.
Mascheroni pleaded guilty in June 2013, to counts seven and eight of the indictment, charging him with conversion of government property and retention of U.S. records, and counts 10 through 15, charging him with making false statements. Mascheroni also pleaded guilty to a felony information charging him with two counts of communication of Restricted Data and one count of retention of national defense information.
In entering his guilty plea, Mascheroni admitted that in November 2008 and July 2009, he unlawfully communicated Restricted Data to another individual with reason to believe that the data would be utilized to secure an advantage to Venezuela. He also admitted unlawfully converting Department of Energy information to his own use and selling the information in November 2008 and July 2009, and failing to deliver classified information relating to the United States’ national defense to appropriate authorities and instead unlawfully retaining the information in his home. Finally, Mascheroni admitted making materially false statements to the FBI when he was interviewed in October 2009.
Roxby Mascheroni pleaded guilty in June 2014, to count six of the indictment, charging her with conspiracy, and counts 16 through 22, charging her with making false statements. She also pleaded guilty to a felony information charging her with conspiracy to communicate Restricted Data. Roxby Mascheroni admitted that between October 2007 and October 2009, she conspired with Mascheroni to convey Restricted Data belonging to the United States to another person with reason to believe that the information would be used to secure an advantage to Venezuela. She also admitted making materially false statements to the FBI when she was interviewed in October 2009.
The indictment in this case did not allege that the government of Venezuela or anyone acting on its behalf sought or was passed any classified information, nor did it charge any Venezuelan government officials or anyone acting on their behalf with wrongdoing. The indictment also did not allege any wrongdoing by other individuals working at LANL.
This investigation was conducted by the FBI’s Albuquerque Division with assistance from the Department of Energy and LANL. The prosecution was handled by Assistant U.S. Attorneys Fred J. Federici, Dean Tuckman and Holland S. Kastrin of the U.S. Attorney’s Office for the District of New Mexico and Senior Counsel Kathleen Kedian and Trial Attorney David Recker of the Counterespionage Section of the Justice Department’s National Security Division.
Former Governor of Santa Ana Pueblo Pleads Guilty to Federal Embezzlement and Tax ChargesRead the Press Release
ALBUQUERQUE – A former Governor of Santa Ana Pueblo and a real estate consultant pleaded guilty this morning to federal embezzlement and tax charges arising out of a scheme to embezzle approximately $3,575,000.00 from the Indian Pueblo Federal Development Corporation (IPFDC), an Indian tribal organization formed by the 19 Pueblos of New Mexico for the purpose of developing land that once had been the site of the Albuquerque Indian School.
Bruce Sanchez, 60, a member, resident and former Governor of Santa Ana Pueblo, N.M., entered a guilty plea to embezzlement from an Indian tribal organization and tax evasion charges. His co-defendant Thomas Keesing, 61, of Pecos, N.M., pled guilty to aiding and abetting embezzlement from an Indian tribal organization and the willful failure to file a tax return. The guilty pleas were announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Dawn Mertz of the Phoenix Field Office of IRS Criminal Investigation, and Matthew Elliot, Deputy Assistant Inspector General for Investigations for the Department of the Interior.
Sanchez and Keesing were indicted in Oct. 2012, and charged with a conspiracy offense and ten substantive embezzlement offenses arising out of the scheme to steal funds belonging to the IPFDC. The 15-count indictment also charged Sanchez with three tax evasion counts alleging an aggregate federal tax loss of $655,276.00, and a misdemeanor count of willful failure to file a tax return. In Aug. 2013, Keesing was charged by information with three misdemeanor counts of failure to file tax returns and those tax charges were consolidated into the case. The information charged Keesing with failure to file federal tax returns for calendar years 2006, 2007 and 2008, even though he received gross income in the aggregate amount of $2,771,250.00 during those three years.
According to the indictment, between 2003 and 2009, Sanchez and Keesing conspired to embezzle approximately $3,575,000.00 from the IPFDC. During that time, Sanchez was the president and chief executive officer of the IPFDC. Keesing, a commercial real estate developer and the owner of New Mexico Real Estate, Inc. (NMREI), worked as a consultant for IPFDC in 2002 and 2003. Sanchez and Keesing engaged in a scheme to unlawfully profit from the development of the Albuquerque Indian School property by having Keesing submit false and fraudulently inflated invoices for payment from NMREI to the IPFDC. Sanchez approved the invoices even though the payments were vastly in excess of the value of any services provided by Keesing and NMREI. Keesing then shared the proceeds of the fraudulently obtained IPFDC payments with Sanchez. Between 2003 and 2008 and as a result of this illegal scheme, Keesing and NMREI received $3,775,000.00 in payments from the IPFDC, including $3,575,000.00 that was fraudulently obtained. During that same period, Sanchez and Tsachu, LLC, his solely-owned consulting company, received approximately $1,722,823.04 from Keesing and NMREI.
This morning, Sanchez entered guilty pleas to Counts 3 and 13 of the indictment charging him with embezzlement from an Indian tribal organization and tax evasion, respectively. Sanchez’s plea agreement details the embezzlement scheme through which Sanchez and Keesing defrauded the IPFDC of $3,575,000.00. Sanchez brought Keesing onto the IPFDC development team in 2002 and Keesing performed services for the IPFDC in 2002 and 2003. Thereafter, Sanchez and Keesing entered into a brokerage and development agreement that was never presented to the IPFDC board for approval, and used the agreement as the vehicle to perpetuate their embezzlement scheme. Between Jan. 2005 and Nov. 2008, Keesing and NMREI submitted more than 100 invoices for professional services purportedly provided in connection with the development of the Albuquerque Indian School site. Sanchez arranged for the IPFDC to pay the invoices, and in return, Sanchez and Tsachu, LLC, received more than 100 checks in the aggregate amount of $1,652,823.04 from Keesing and NMREI. Although this illegally obtained money was taxable income, Sanchez did not report the income to the IRS.
Keesing pled guilty to Count 3 of the indictment charging him with aiding and abetting embezzlement from an Indian tribal organization, and Count 1 of the misdemeanor information charging him with the willful failure to file an income tax return. Keesing’s plea agreement sets forth a detailed description of his role in the embezzlement scheme that defrauded the IPFDC of $3,575,000.00. According to his plea agreement, Keesing shared these illegally obtained proceeds with Sanchez with Sanchez taking $1,652,823.00, and Keesing retaining the balance. Keesing acknowledged that Sanchez provided nothing of value in return for this money and used Keesing as a conduit to receive IPFDC funds to which he was not entitled. Keesing participated in the scheme to obtain additional compensation for work he previously performed on behalf of the IPFDC and for which he felt he was not adequately compensated. Although the proceeds Keesing obtained from the IPFDC were taxable income, he failed to file federal tax returns reporting the income.
Sanchez and Keesing remain on conditions of release and under pretrial supervision pending their sentencing hearings, which have yet to be scheduled. At sentencing, Sanchez faces a statutory maximum penalty of five years in prison on each of the two counts of conviction. Keesing faces a statutory maximum of five years in prison on the embezzlement count and up to one year in prison on the tax count. The plea agreements also require that Sanchez and Keesing pay full restitution to the IPFDC for the losses it sustained as a result of their criminal conduct.
In announcing the guilty pleas, U.S. Attorney Damon P. Martinez said, “The IPFDC was established to develop real estate for the benefit of the 19 Pueblos of New Mexico and their people. Bruce Sanchez was entrusted to spearhead that development. Instead, Sanchez betrayed the people he was duty-bound to serve.”
“Mr. Sanchez and Mr. Keesing used their positions of power to line their own pockets at the expense of the members of New Mexico’s Pueblos. By pleading guilty today and accepting responsibility, the defendants have taken a positive first step in making amends for the harm they have caused,” stated IRS Criminal Investigation Special Agent in Charge Dawn Mertz.
“The investigation and successful prosecution of Sanchez and Keesing exemplifies the good that occurs when law enforcement agencies and the Department of Justice collaborate in the public interest,” said Matthew Elliott, Deputy Assistant Inspector General for Investigations for the Department of the Interior.
The case was investigated by the IRS Criminal Investigation and the Department of the Interior’s OIG, and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.
Former Detroit Public Library Contractors Sentenced on Bribery ChargesRead the Press Release
Two former contractors with the Detroit Public Library were sentenced late yesterday afternoon on charges of bribery of a public official, United States Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement were Paul M. Abbate, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Jarod Koopman, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
James Henley, 44, of Detroit, and Ricardo Hearn, 32, of Royal Oak, were sentenced to 27 months and 28 months, respectively, by United States District Judge George Caram Steeh. Each man also was ordered to pay $750,000 in restitution to the Detroit Public Library for losses suffered by the library as a result of the crimes.
According to court records, Henley and Hearn paid former Detroit Public Library Chief Administrative Officer Timothy Cromer a total of $1.4 million in kickbacks in return for contracts for information technology services with the Detroit Public Library during the period 2007 to 2010. After being confronted by federal law enforcement officials, Henley and Hearn both cooperated in the prosecution of Cromer. On September 16, 2014, Cromer was sentenced to 10 years in prison for his role in the bribery conspiracy, and ordered to pay $3,913,890.42 in restitution to the library.
Henley owned a company called Core Consulting & Professional Services. Cromer approved a proposal submitted by Core Consulting to provide information technology work, and approved various extensions and change orders to the contract. Ultimately, the Library paid Core Consulting almost $2 million under the contract, and Henley secretly paid kickbacks to Cromer totaling over $650,000 during the period 2007 to 2008. Henley also pleaded guilty to failing to file tax returns for the year 2007. Hearn, who owned Cubemation LLC, paid Cromer kickbacks totaling about $800,000 in exchange for Cromer approving no-bid professional services contracts for Hearn’s company to perform information technology services for the library from 2008 until 2010. Cubemation received about $3.2 million in payments from the Detroit Public Library
"This case demonstrates that not just bribe takers, but bribe payers will be held accountable in appropriate cases. Everyone who corrupts the system should be brought to justice," said United States Attorney McQuade.
“All those involved in the misappropriation of government funds for their own selfish purposes violate federal law and betray the trust of the citizens they purport to serve,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, and its local, state and federal law enforcement partners, remain vigilant in the fight against public corruption, and committed to bringing to justice those who abuse the public’s trust.”
“It’s disappointing when the public trust is abandoned by the actions of a few,” said IRS Acting Special Agent in Charge Jarod Koopman. “IRS-Criminal Investigation will continue to identify and help prosecute those that attempt to deceive the public, abuse the system and use their position for their own personal gain. These sentences will hopefully send a message to others that not only will they be held to the highest standard, but they will be punished equally.”
The case was investigated by agents of the FBI and IRS-Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Mark Chutkow and Julie BeckFederal jury convicts two men involved in multiple armed robberiesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that two men were found guilty by a federal jury, following a nearly three week trial at the Robert C. Byrd United States Courthouse in Charleston.
Darrell E. Gillespie, 29, of Smyrna, Georgia; and Jamaa I. Johnson, 34, of Wytheville, Virginia; were found guilty of conspiracies to commit armed robbery and to use firearms in crimes of violence, as well as offenses relating to obstruction of justice.
The conspiracy involved armed robberies dating back to the fall of 2011 in Pittsburgh. Gillespie, joined by co-defendants Brandon Davis and Robert Barcliff, traveled to Pittsburgh to rob a drug dealer that Davis knew. After the robbery, the men came back to Charleston to split up marijuana stolen in the robbery.
Over the next four months, Gillespie, or his co-conspirators, participated in six more robberies in West Virginia and Virginia. All involved firearms, and during the Jan. 18, 2012 robbery of Cabell Franklin in Charleston, committed by at least Robert Barcliff and Brandon Davis, Cabell Franklin was shot in the leg and stabbed.
Throughout the trial, multiple victims and co-conspirators of Johnson and Gillespie took the stand to testify against the two men. Barcliff, Davis and Glenn all testified to the defendants’ involvement in the robberies, the use of firearms and the conspiracy to commit the crimes. Barcliff and Megan Smith, Johnson’s ex-girlfriend, also testified to the defendants’ efforts to cover up the crimes.
Barcliff testified that he and Gillespie worked out a false alibi for a robbery that took place March 22, 2012, in Bristol, Virginia. The two men planned to use a female friend, who was uninvolved in the crimes, to say she had been with Gillespie that entire night. The friend said she received calls from a person identifying himself as DJ, a known nickname for Gillespie, who asked her to provide a false alibi for him. She refused.
Johnson was found guilty of witness tampering by attempting to use Smith, his ex-girlfriend, to craft his false alibi. Smith said Johnson sent her a letter requesting her to “please get this prepared” and “I need you to really remember that trip you took to see me.” He was referring to a fake trip to Richmond, Virginia, but Smith confirmed that trip never happened, and that she drove him instead to Charleston on January 18, 2012, the day of the Franklin robbery, so he could destroy evidence.
Gillespie faces a mandatory minimum sentence of 30 years, and up to life, in prison when he is sentenced on May 6, 2015. Johnson faces up to 45 years in prison when he is sentenced on May 6, 2015.
United States District Judge Thomas E. Johnston presided over the trial.
The case was investigated by the Federal Bureau of Investigation, South Charleston Police Department and Charleston Police Department. Assistant United States Attorneys Monica D. Coleman, Meredith Thomas and Timothy Boggess were in charge of the prosecution.
###
Federal Jury Convicts Laredoan in Alien Harboring ConspiracyRead the Press Release
LAREDO, Texas – A Jury sitting in Laredo has convicted Gustavo Villegas, 28, of Laredo, tonight of all four counts related to harboring 21 illegal aliens for profit, announced U.S. Attorney Kenneth Magidson. The jury returned its verdict less than an hour ago following a two-day trial and 90 minutes of deliberation.
The jury heard that Villegas took part in a conspiracy to smuggle and harbor illegal aliens in Laredo in July 2014. Villegas transported illegal aliens to a local Burger King restaurant as well as both the American Best Value Inn and Gateway Inn hotels in Laredo. Homeland Security Investigations (HSI) ultimately discovered a total of 21 illegal aliens at the hotels. Through ongoing investigation, agents tracked vehicles to Villegas and others and he was arrested on Oct. 23, 2014.
When HSI agents learned of a smuggling event which was to occur at an HEB parking lot in Laredo, they began conducting surveillance and witnessed a number of persons exit a Ford Focus car and get into a Dodge Durango truck Villegas was driving. Agents followed the vehicle to a Burger King where four of the people got out of the Dodge truck and boarded another vehicle bound for America’s Best Value hotel in Laredo. Several people got out and entered a room at the hotel. Agents witnessed similar activity leading them to the Gateway Inn hotel where more individuals were seen entering that hotel on two separate occasions. Eventually, agents knocked on the doors of both hotels and asked for consent from the occupants.
The jury heard and was provided evidence that Villegas had rented the room at America’s Best Value hotel which was found to hold seven El Salvadoran nationals and one Honduran national. Co-defendant Rodolfo Castaneda rented the Gateway Inn hotel room which held 13 El Salvadoran nationals.
At trial, the United States presented testimony from numerous HSI agents, the undocumented aliens as well as local hotel owners. The government also provided evidence of vehicle registration information connecting Villegas to multiple vehicles used in this conspiracy.
Castaneda previously pleaded guilty and is awaiting sentencing.
U.S. Senior District Judge Janis Graham Jack presided over trial and sentencing will be set at a later date.
HSI conducted the investigation. Assistant U.S. Attorneys Jorge Vela and Sanjeev Bhasker prosecuted the case.
Eufaula Man Sentenced to 150 Months for Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that SEAN DEVAL WARRIOR a/k/a Sean G, age 33, of Eufaula, Oklahoma, was sentenced to 150 months imprisonment, followed by 36 months of supervised release for Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C).
Charges arose from an investigation by the District 18 and District 25 Drug and Violent Crime Task Forces, Eufaula Police Department and the Drug Enforcement Administration. The defendant was indicted in August, 2014 and pled guilty in September, 2014.
The Indictment alleged that on or about January 24, 2014, in the Eastern District of Oklahoma, SEAN DEVAL WARRIOR a/k/a Sean G, defendant herein, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, 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 Rob Wallace represented the United States.
Department of Justice Diagnostic Center Provides Final Assessment to Minneapolis Police Department to Help Build Trust Between Police and the CommunityRead the Press Release
Today, the U.S. Department of Justice’s Office of Justice Programs’ (OJP) Diagnostic Center and the Minneapolis Police Department (MPD) released the final assessment and implementation plans to support the MPD’s accountability procedures. The Diagnostic Analysis will allow MPD to implement changes that will improve police and community trust in the Minneapolis community. The assessment focused on goals set by MPD including improving police accountability and preventing officer misconduct.
The Diagnostic Center analyzed citizen complaints over a six-year period, identified strengths and gaps in oversight, discipline and accountability, and evaluated MPD’s current early-intervention system and how it compares to other model systems. The full report is available at the Diagnostic Center’s website.
“Strengthening relationships between law enforcement agencies and the communities they serve is one of the defining public safety challenges of our time,” said Assistant Attorney General Karol V. Mason for the Office of Justice Programs. “I commend Chief [Janeé] Harteau for calling on the resources of the OJP Diagnostic Center and for her commitment to building trust with the citizens of Minneapolis.”
In 2014, the Diagnostic Center conducted an independent assessment including community stakeholder interviews and data analysis to identify promising practices for police accountability related to managing oversight and preventing misconduct. In October 2014, the Diagnostic Center presented its assessment findings to the MPD and broader Minneapolis community. Since the presentation of the Diagnostic Center’s Analysis, the MPD has moved forward with creating five committees comprising representatives from MPD, the Office of Police Conduct Review, city leadership and the community to address recommendations on police conduct, early interventions systems, community outreach, and coaching and strategic communications.
“The work that the Minneapolis Police Department and the Diagnostic Center have embarked on fits squarely into the goals of community safety, officer safety and criminal justice reform that the Justice Department has made a top priority,” said Deputy Assistant Attorney General Mark Kappelhoff for the Justice Department’s Civil Rights Division. “I applaud Chief Harteau, the Minneapolis Police Department and the community on their leadership and commitment to implementing sustainable solutions that will lead to increased public trust and safety for everyone.”
The Diagnostic Center provides customized technical assistance to help state, county, city and tribal communities identify and confront persistent, systemic public safety challenges. In addition to addressing a particular public safety concern, engagement with the Diagnostic Center is intended to build the community’s capacity to act independently and use data to make future policy and programming decisions. Federal agencies and experts across the Department of Justice are available to leverage resources and develop a coordinated federal response to community-specific public safety issues and provides customized assistance to communities by collecting and analyzing data to identify the factors contributing to the public safety issue and then mapping those factors to strategies and solutions that have demonstrated success in reducing crime.For more information or to request assistance go to https://www.ojpdiagnosticcenter.org/.
OJP, headed by Assistant Attorney General Karol V. Mason, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six components: the Bureau of Justice Assistance, the Bureau of Justice Statistics, the National Institute of Justice, the Office of Juvenile Justice and Delinquency Prevention, the Office for Victims of Crime and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP can be found at www.ojp.gov.Denton County Man Guilty of Wire Fraud ChargesRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 35-year-old Little Elm, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joey Earl Cooper pleaded guilty to wire fraud today before U.S. District Judge Amos L. Mazzant.
According to information presented in court, from April 2011 to July 2012, Cooper controlled a Wells Fargo bank account in the name of Darmaini & Cooper BG, Inc., in Frisco, Texas. Cooper also operated a private postal center in Little Elm, Texas. During this time, Cooper devised a scheme to defraud two customers of his private postal center and Citibank by using the customer’s Citibank credit card, which was only provided to Cooper to pay for the customer’s mailings from his private postal center, to transfer funds from Citibank to his Wells Fargo bank account. Cooper would then withdraw the funds from his Wells Fargo account and use the money for his own personal benefit.
Cooper was indicted by a federal grand jury on Aug. 13, 2014 charging Cooper with federal violations. He was arrested by Special Agents of the IRS Criminal Investigation on Sep. 14, 2014 at JFK International Airport in New York.
Cooper faces up to 10 years in federal prison and forfeiture of $1,001,360.92. A sentencing date has not been set.
This case is being investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.
Dallas Former Mortgage Broker Guilty of FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 55-year-old Dallas former mortgage broker has pleaded guilty to federal charges in connection with a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Jose Antonio Caballero pleaded guilty to defrauding the Department of Housing and Urban Development and Federal Housing Administration today before U.S. District Judge Amos L. Mazzant.
According to information presented in court, Caballero owned and operated American Processing Center, providing assistance to homeowners with mortgage loan modification programs, including the Home Affordable Modification Program. Between March 2011 and December 2011, Caballero worked with homeowners in Mesquite, Texas to obtain an extension and renewal of a loan and mortgage on their residence on Bayberry Drive, which was insured by the Department of Housing and Urban Development. In the process, Caballero falsified documents, including a Statement of Hardship Letter, a Monthly Income Expense Worksheet, and a Making Home Affordable Program Request for Modification and Affidavit. Caballero did so knowing the documents were fraudulent and for the purpose of defrauding the federal agencies.
Caballero also engaged in similar conduct with respect to 20 other properties located in Carrollton, Dallas, Farmers Branch, Fort Worth, Garland, Grand Prairie, Irving, Little Elm, Mesquite, and Rowlett, some of which were secured by Fannie Mae and Freddie Mac.
Caballero faces up to two years in federal prison at sentencing. A sentencing date has not been set.This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the Department of Housing and Urban Development, Office of Inspector General, and the Federal Housing Finance Agency, Office of Inspector General and prosecuted by Assistant U.S. Attorney Christopher A. Eason.Columbian National Pleads Guilty to Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TEOFILO RIASCOS-OROBIA, age 43, a native of Columbia, pled guilty today to a one-count Indictment for illegal reentry of a removed alien, in violation of Title 18, United States Code, Section 1326(a).
According to court documents, RIASCOS-OROBIA was found in the United States on November 21, 2014, after having been previously removed from the United States on June 23, 1997.
RIASCOS-OROBIA faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Helen G. Berrigan set sentencing for May 6, 2015.
U.S. Attorney Polite praised the work of the U.S. Customs and Border Protection agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Cleveland Man Indicted for Fraudulently Obtaining Nearly $1 Million from Now-Closed Credit UnionRead the Press Release
A six-count federal indictment was unsealed today charging a Cleveland man with fraudulently obtaining nearly $1 million from the now-closed St. Paul Croatian Federal Credit Union, said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Joe Spaqi, 60, was arrested Wednesday. He was indicted on four counts of financial institution fraud and two counts of money laundering.
Spaqi aided and abetted credit union chief operating officer Anthony Raguz and a relative identified only as P.S. in a scheme to defraud the credit union between 2005 and 2009. Spaqi did this by requesting loans from the credit union through Raguz. He did not follow established procedures and made false statements to obtain these loans, according to the indictment.
Raguz approved multiple loans to Spaqi, Eclipse Bar and Grill (which Spaqi owned) or Luke Nue (an alias he used) which totaled approximately $965,422. Those monies were paid in checks to Spaqi, Eclipse, Nue, P.S. and unrelated third parties. As a result, the credit union and National Credit Union Administration suffered losses of approximately $965,422, according to the indictment.
Spaqi is also accused of depositing fraudulent loan proceeds from Eclipse Bar and Grill into her personal share accounts, according to the indictment.
The credit union, headquartered in Eastlake, was closed and then liquidated in 2010 after sustaining losses of approximately $170 million, making it one of the largest credit union failures in American history. Nearly 20 people have been convicted of crimes related to fraudulent lending that resulted in the credit union’s failure.
Raguz is currently serving a 14-year federal prison sentence. He is one of nearly 20 people have been convicted of crimes related to St. Paul Croatian Federal Credit Union.
This case is being prosecuted by Assistant U.S. Attorney Bridget M. Brennan and United States Attorney Steven M. Dettelbach following an investigation by the Cleveland Offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Christopher Ryan Jenkins Sentenced for Methamphetamine Manufacturing ConspiracyRead the Press Release
KNOXVILLE, Tenn. – On Jan. 28, 2015, Christopher Ryan Jenkins, 28, of Rockwood, Tenn., was sentenced to serve 240 months in prison, by the Honorable Pamela Reeves, U.S. District Judge, for conspiracy to manufacture 50 grams or more of methamphetamine (meth) and possession of precursors used to manufacture meth. Upon his release from prison, he will be supervised by the U.S. Probation Office for 10 years.
Jenkins was charged along with 17 others in a July 2014 indictment. He pleaded guilty to the offenses described above in September 2014. According to the plea agreement on file with U.S. District Court, between 2012 and 2014 Jenkins conspired with at least one other person to manufacture at least 50 grams of meth in various locations in east Tennessee. According to pharmacy records and by his own admission, he purchased, or had others purchase for him, pseudoephedrine that he used to manufacture meth.
“These cases demonstrate the tremendous impact that collaborative investigations among law enforcement agencies can help to combat methamphetamine production and distribution,” said U.S. Attorney Bill Killian. “The U.S. Attorney’s Office will continue to prosecute these types of cases to help rid communities of this harmful drug and the environmental impact caused by its production.”
Federal Bureau of Investigation (FBI) Special Agent in Charge Edward W. Reinhold said, “Manufacturing methamphetamine is a dangerous business and the community will not stand by while the drug trade goes on unchecked. The FBI commends the collaboration among the local law enforcement agencies, who devoted significant resources during this investigation.”
“We are gratified by the outcome in this joint investigation,” said Tennessee Bureau of Investigation (TBI) Director Mark Gwyn. “We will continue to work in partnership to identify and hold accountable those who cook meth. This is a tough fight, but we’re committed to the effort to eradicate this deadly drug.”
Sheriff Jack Stockton said, “The Roane County Sheriff’s Office hopes that this stiff sentence for a very young offender sends a message to all methamphetamine cooks that their lawlessness will not be tolerated and their crimes will be severely punished. I thank the United States Attorney’s Office for its continued partnership in addressing the methamphetamine problem in the East District of Tennessee.”
This case was investigated by the Roane County Sheriff’s Office, Harriman Police Department, Rockwood Police Department, Kingston Police Department, TBI and FBI. Assistant U.S. Attorney Brooklyn Sawyers represented the United States.
Charleston woman sentenced on heroin, firearm chargesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Chandra Ross, 30, of Charleston, was sentenced to 84 months in federal prison, followed by three years of supervised release.
In October 2013, Ross pleaded guilty to possession with intent to distribute heroin. In March 2014, she also pleaded guilty to possession of a firearm with an obliterated serial number, and possession of a firearm in furtherance of her drug trafficking.
United States District Judge Thomas E. Johnston imposed the sentence.
The case was investigated by the Kanawha Bureau of Investigation. Assistant United States Attorney Steve Loew was in charge of the prosecution.
###
Certified Nurse Practioner Diantha Miller Sentenced to Federal Prison for FraudRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama and Special Agent in Charge Robert Lasky of the Mobile Division of the FBI announce that Certified Nurse Practitioner Diantha Miller has been sentenced to 12 months and one day in federal prison, and has been ordered to pay $347,868.26 in restitution to Blue Cross/Blue Shield of Alabama. Her sentencing comes three months after a federal jury found Miller guilty on two counts of healthcare fraud and one count of conspiracy.
At trial, the evidence established that while Diantha Miller was the co-owned the Laser Skin Care Center of Mobile, she engaged in a scheme to fraudulently up-code, a scheme to fraudulently re-code, and conspired to with others to engage in both schemes. Specifically, the jury found that Miller knowingly and willfully engaged in a scheme to falsify bills to insurance companies so that it would appear as if services were performed by Dr. Carpenter, not Miller. This was done because patient services are reimbursed at higher rates when performed by physicians. In addition, Miller knowingly and willfully engaged in a scheme to fraudulently alter billing codes on rejected bills so that the Laser Skin Care Center would be reimbursed. Finally, the jury found that Miller conspired with Dr. Carpenter to commit these crimes. As co-owners of the business, Miller and Dr. Carpenter both benefited financially from the fraudulent billings. In total, these fraud schemes resulted in Laser Skin Care Center receiving nearly $1 million in fraudulent reimbursements.
At Diantha Miller’s sentencing hearing, U.S. District Court Judge Callie V.S. Granade found that a reasonable estimate of the restitution owed to Blue Cross/Blue Shield was $347,868.26, but that the true loss caused by Miller’s fraudulent schemes was between $400,000.00 and $1,000,000.00. Judge Granade also found that Miller organized and supervised the fraud schemes, and that her actions abused the trust instilled in her by Blue Cross/Blue Shield. Ultimately, Judge Granade concluded that incarceration for 12 months and 1 day was a sufficient period of time to meet the ends of justice in this case.
United States Attorney Kenyen Brown was pleased with today’s result: “By sentencing defendant Diantha Miller to over a year in federal prison, the Court has sent a strong message that those willing to engage in fraudulent medical billing practices should expect to wind up in federal prison. My office will continue to vigorously prosecute fraud cases, particularly fraud cases that syphon money away from our healthcare system.” Special Agent in Charge Robert Laskey also noted: “Health Care Fraud continues to be a tremendous problem, draining taxpayers’ dollars and putting them in the pockets of criminals,” said FBI Special Agent in Charge Robert F. Lasky. “The FBI will continue to dedicate a substantial amount of investigative resources to pursue those that steal from our healthcare system.” A spokesperson for Blue Cross and Blue Shield of Alabama said the company is pleased with today’s ruling: “Financial losses due to healthcare fraud have a direct effect on our members. Blue Cross remains committed to fighting fraud and abuse to protect our members’ health and well-being and help reduce the cost of healthcare.”
This case was investigated by FBI-Mobile and prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Buffalo Woman Sentenced for Conspiracy to Distribute Crack CocaineRead 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 Kayla Renee Combs, 25, of Buffalo NY, who was convicted of conspiracy to possess with intent to distribute and to distribute crack cocaine, was sentenced to 30 months in prison, by U.S. District Court Judge Richard J. Arcara.Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that the charge stems from an investigation into the trafficking of crack cocaine and cocaine from the Cleveland, Ohio area into Western New York, and the distribution of those drugs in North Tonawanda, Niagara Falls, Lockport, and Buffalo.
Co-defendants Nathaniel Clark, 29, of Niagara Falls and Tommy Eugene Clark, a/k/a Boo, have been convicted and are awaiting sentencing. Charges are pending against Raysean Clark, 27, of Buffalo.
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, in conjunction with the Niagara County Sheriff's Department and Niagara County Drug Task Force, under the direction of Sheriff James Voutour, and the North Tonawanda Police Department, under the direction of Chief William Hall.
Boston Career Criminal Sentenced to 17 Years for Drug Trafficking and Firearm PossessionRead the Press Release
BOSTON – A Boston man was sentenced today to 17 years in prison after a jury found him guilty of drug trafficking and illegal firearm possession.
Kenneth Whigham Jr., 33, of Boston, was sentenced before U.S. District Court Chief Judge Patti B. Saris to 17 years in prison. In October 2014, Whigham was convicted following a three-day jury trial of being a felon in possession of a firearm n and possession with intent to distribute cocaine base.
Shortly before midnight on Feb. 28, 2013, two Massachusetts State Police troopers stopped Whigham for erratic driving in the O’Neil Tunnel in Boston. A video recording of the traffic stop showed one of the troopers attempting to enter Whigham’s car as Whigham slid a loaded handgun under the front passenger seat. The troopers entered the car, found the gun – a .25 caliber Raven Arms handgun with an obliterated serial number loaded with six rounds of ammunition – and arrested Whigham. The troopers seized individually-wrapped pieces of crack cocaine packaged for sale and $666 on Whigham when they arrested him.
At today’s sentencing hearing, the prosecutor recommended that the Court sentence Whigham to 21 years in prison. The prosecutor’s recommended sentence was based in large part on Whigham’s lengthy criminal record, which included two previous federal crack cocaine distribution convictions and state convictions for unlawful possession of a firearm and assault and battery with a dangerous weapon. Due to his criminal history, Whigham faced a fifteen year mandatory minimum sentence for possessing the firearm.
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; and Colonel Timothy P. Alben of the Massachusetts State Police, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Christopher Pohl of Ortiz’s Organized Crime Strike Force Unit.
Bogalusa Men Sentenced for Their Role in Conspiracy to Commit Mail Fraud and Mail FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHARLES E. “CHUCK” MIZELL, JR., age 44, a resident of Bogalusa, Louisiana, was sentenced today after previously pleading guilty to conspiracy commit mail fraud in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits, and five counts of mail fraud.
U.S. District Judge Helen G. Berrigan sentenced MIZELL to 21 months imprisonment, followed by 3 years of supervised release. Additionally, MIZELL was found to be jointly and severally liable with his co-defendants for $53,356 in restitution.
According to court records, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, MIZELL, TERRY CASTILOW, WILLIAM DARRYL KING, DAVID LOWE, JAMES CREEL, JERRY ATHEY, TENILLE NIELSON, JACQUELINE MYERS, and ROGER NADEAU conspired to defraud the Louisiana Workforce Commission (“LWC”) of money and property by means of false and fraudulent representations, pretenses and promises, well knowing the representations, pretenses and promises were false, and mailed and caused to be mailed through the United States Postal Service unemployment (“UI”) benefit claim forms for the purpose of obtaining UI benefits to which they were not entitled. Specifically, at the time CASTILOW, KING, LOWE, CREEL, ATHEY, NIELSON, MYERS, and NADEAU applied for UI benefits and made weekly representations to LWC that they were unemployed and not getting paid, MIZELL actually employed them at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.
MIZELL was the President of Chamico and, according to the factual bases in the court record, asked those employees to fraudulently file for unemployment so that he would not have to pay their full salaries during tough economic times for Chamico. The employees would each get cash from Chamico during the weeks they were claiming unemployment benefits reporting that they were not working and not getting any income from work.
Also sentenced today was JAMES CREEL, age 48, a resident of Bogalusa, Louisiana, and WILLIAM DARRYL KING, age 47, a resident of Angie, Louisiana. CREEL and KING each received 2 years’ probation and a $500 fine for their role in the conspiracy to commit mail fraud. ROGER NADEAU, age 51, of Linn, Missouri, is the last remaining defendant in this case. He pleaded guilty to one count of conspiracy at today’s proceeding. NADEAU faces a maximum sentence of 5 years in prison, a $250,000 fine, and three years supervised release on the conspiracy conviction.
U.S. Attorney Polite praised the work of the Department of Labor-OIG and the Federal Bureau of Investigation with assistance from the Louisiana Workforce Commission in investigating this matter. Assistant United States Attorney Emily K. Greenfield is in charge of the prosecution.
Atlanta Businessmen Arrested on Market Manipulation ChargesRead the Press Release
ATLANTA - Marc E. Bercoon and William A. Goldstein have been indicted and arrested on federal charges that they manipulated the market for shares of Medcareers Group, Inc., a publicly traded company, and that they carried out a second investment fraud scheme using a new business corporation that they organized as the bait for investors.
“These defendants are charged with manipulating the stock of a publicly traded company by carrying out pump and dump schemes,” said Acting United States Attorney John Horn. “They are also charged with orchestrating an investment fraud scheme using a separate, private company, and laundering the proceeds of that fraud. This office is committed to fighting all types of investment fraud – including securities fraud involving publicly traded companies.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “Investment based fraud is not a victimless crime and the FBI will continue to dedicate significant resources toward identifying, investigating, and presenting for prosecution those individuals involved.”
According to Acting United States Attorney Horn, the charges, and other information presented in court: From July 2009 through September 2011, the defendants conspired with each other and others to manipulate the market for shares of Medcareers Group, Inc., a publicly traded company quoted on the over-the-counter bulletin board under the ticker symbol MCGI. The conspiracy culminated in two “pump and dump” schemes carried out in March and May 2010. To carry out the pump and dump schemes, Bercoon and Goldstein arranged for Medcareers Group, Inc. to issue a series of misleading press releases and SEC filings, at the same time as co-conspirators sent out mass emails touting the stock. While the price of MCGI and the demand for the stock were both artificially high because of these efforts, the defendants orchestrated a massive sell-off of their stock, coordinating activity in multiple “nominee” accounts, which were titled in the names of other people and entities to hide the defendants' involvement.
The indictment further alleges that from May 2009 through June 2010, Bercoon and Goldstein also carried out a second investment fraud concerning a privately held company. Specifically, Bercoon and Goldstein organized a private corporation, Findcom Acquisition, Inc., and then solicited investments from dozens of individuals. Bercoon and Goldstein told investors, and induced brokers working for them tell investors, that their funds would be used to develop an Internet search engine named “Find.com.” In fact, Bercoon and Goldstein used the bulk of the over $1.5 million raised from investors for unrelated purposes, such as subsidizing their other business ventures and making payments to themselves and their family members. In fact, much of the $1.5 million invested in Find.com was simply withdrawn from the bank in cash shortly after being invested.As part of the scheme, investors were provided with written offering materials. In addition to stating that the investments would be used to develop the Find.com Internet search engine business, the written materials stated that investors were being offered the opportunity to buy stock at a uniform price of $1.00/share, and that no more than 12.5% of investments would go toward commissions. Despite these representations in the written offering materials, Bercoon and Goldstein sold stock to some investors at heavily discounted prices, without informing other investors, and paid commissions of up to 35% to brokers on some investments.
These charges flow from a securities fraud investigation conducted by the Federal Bureau of Investigation, in which court-authorized wiretaps were used to intercept telephone conversations.
Marc E. Bercoon, 54, of Dunwoody, Ga. and William A. Goldstein, 51, of Atlanta, Ga., were arrested and had initial appearances and bond hearings before Linda T. Walker, United States Magistrate Judge, on federal charges of conspiracy, mail fraud, wire fraud, securities fraud, and money laundering in connection with two fraudulent schemes. Goldstein was also arraigned at the court hearing. Bercoon and Goldstein were indicted by a federal grand jury on January 21, 2015.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. Valuable assistance has been provided by the staff of the U.S. Securities and Exchange Commission.
Assistant United States Attorneys Alana R. Black and Stephen H. McClain are prosecuting the case.
This announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
27 January 2015
Two Detroit men convicted of oxycodone traffickingRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cary Dailey, 25, and Lance Demarco Harris, 21, both of Detroit, Michigan, were convicted in federal court today for prescription painkiller trafficking, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Mon Valley Drug and Violent Crime Task Force revealed that Dailey and Harris were involved in the distribution of oxycodone in Monongalia County, West Virginia during the fall of 2014. Dailey was discovered in possession of oxycodone in September 2014. He pled guilty today to one count of “Aiding and Abetting the Possession with Intent to Distribute Oxycodone.” Harris sold oxycodone in September 2014. He pled guilty today to one count of “Distribution of Oxycodone.”
Both defendants face up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Zelda Wesley is prosecuting the cases on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Traveler Heads to Prison for Importing Cocaine from MexicoRead the Press Release
LAREDO, Texas– Ruben Judas Ruiz-Vazquez, 42, a legal permanent resident from Mexico, has been ordered to prison for conspiracy/importation/possession with the intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson. Ruiz-Vazquez pleaded guilty Oct. 21, 2014.
Today, U.S. District Judge Marina Garcia Marmolejo handed Ruiz-Vazquez a sentence of 70 months in federal prison. He is expected to face deportation proceedings following his release from prison.
On July 28, 2014, Ruiz-Vazquez attempted to enter the United States from Mexico by crossing the Lincoln Juarez International Bridge (POE #2) in Laredo. He was driving a 2007 Jeep Compass vehicle which a drug canine alerted to contain contraband.
Customs and Border Protection (CBP) agents conducted an x-ray examination of the vehicle and discovered 18 bundles of cocaine weighing 18.24 kilograms within the vehicle’s undercarriage. Homeland Security Investigation (HSI) agents were notified for further investigation.
Ruiz-Vazquez initially denied knowledge of the drugs and claimed he was traveling in a work vehicle. Agents contacted his employer in Wisconsin who indicated he did not have permission to travel into the United States for work.
Ruiz-Vazquez later wrote a letter to his employers from jail, apologizing for his conduct.
The charges are the result of an investigation HSI and CBP. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting the case.
Three Men Sentenced for Fraud Scheme That Used Homeless to Cash Counterfeit ChecksRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that three men have been sentenced for their roles in a bank fraud conspiracy that used homeless men to cash counterfeit payroll checks at banks in the Kansas City area.
More than $400,000 in counterfeit checks was passed in the Kansas City area over the course of a few months in late 2012 and early 2013. Nationwide, more than $8 million in counterfeit checks has been passed by various crews that travel across the country to steal business mail, create counterfeit payroll checks and recruit homeless men to cash the counterfeit checks.
Truly Matthews, 48, and Calvin Almond, 47, both of Atlanta, Ga., and Gary Merritt, 55, of Kansas City, Kan., (formerly of Atlanta) were sentenced by U.S. Chief District Judge Greg Kays on Monday, Jan. 26, 2015. Matthews was sentenced to 10 years and four months in federal prison without parole and ordered to pay $62,861 in restitution. Merritt was sentenced to five years in federal prison without parole and ordered to pay $239,092 in restitution. Almond was sentenced to two years and 11 months in federal prison without parole and ordered to pay $57,772 in restitution.
Each of the three men pleaded guilty to participating in a conspiracy to commit bank fraud from Dec. 21, 2012, to Feb. 1, 2013.
Matthews, Merritt and Almond admitted that they and the other conspirators recruited homeless men to cash a total of $233,728 in counterfeit checks in December 2012 and January 2013. They unsuccessfully attempted to cash an additional $59,344 in counterfeit checks.
Matthews’s role in the conspiracy was to assist in the printing of counterfeit payroll checks that he knew would be passed by homeless men at banks in Kansas City. Merritt and Almond found homeless men in Kansas City and recruited them to pass counterfeit payroll checks at banks in Kansas City.
Almond was first recruited to the bank fraud scheme in 2002, when he was arrested and served prison time for his role in the scheme. In January 2013, Almond was again recruited into the scheme and agreed to act as a driver on road trips to Kansas City, Mo., and Lincoln, Neb., knowing that the purpose of these trips was to recruit homeless men to pass counterfeit checks. When conspirators became suspicious about police surveillance in Kansas City, they traveled to Lincoln to continue the same scheme.
Co-defendants Anthony Bernard Lowe, 54, and Marcus Bryant, 34, both of Atlanta, Derrick Nate Andrews, 23, of Decatur, Ga., and Howard Youngblood, 41, and Michael Lee McWilliams, 54, both of Kansas City, Mo., have also pleaded guilty to their roles in the conspiracy. Lowe was sentenced to four years and four months in federal prison without parole and ordered to pay $233,728 in restitution. Andrews was sentenced to time served and ordered to pay $57,772 in restitution. Youngblood was sentenced to time served and ordered to pay $10,693 in restitution.
This case is being prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by the U.S. Postal Inspection Service, the Kansas City, Mo., Police Department, the Leawood, Kan., Police Department and the Atlanta, Ga., Police Department.
Thirteen Sentenced for Narcotic Distribution and Violent Home InvasionsRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that TAVARIS DELINO BATTLE, 30, of Elm City, TONY MARICHAL SHARP, 31, of Sharpsburg, BYRON DALE WHITAKER, 23, of Sharpsburg, GREGORY DEVONTE ROBERTSON, 20, of Rocky Mount, NATALIE BAKER LYNCH, 33, of Roanoke Rapids, TREMAYNE A. LYNCH, 35, of Rocky Mount, TANGI SONYETTE WILLIAMS, 37, of Rocky Mount, ROBERT MACK RICHARDSON, 33 of Enfield, MATHEW LEE LEAK, 32, of Sharpsburg, ANDREW LEONARD LEAK, 30, of Rocky Mount, JEROLD JERALD MASON, 30, of Sharpsburg, SHAMEKA JOHNESE WINN, 28of Wilson and ROY LATRON RICHARDSON, 23, of Nashville were each sentenced resulting from their earlier guilty pleas to distributing large quantities of cocaine and cocaine base (crack). The charges involved a large scale narcotics ring responsible for selling kilos of crack from around May 2011 to on or about July 16, 2013 in the Sharpsburg area.
Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Wayne L. Dixie, Jr. stated, “This case is another example of ATF’s commitment to ensure the public’s safety by removing drug traffickers and violent individuals from our communities. These results could not have occurred without the outstanding partnerships that we have with our law enforcement partners (USAO; Drug Enforcement Administration, Rocky Mount Police Department, Nash County Sheriff’s Office, Wilson County Sheriff’s Office and Edgecombe County Sheriff’s Office).”
All 13 defendants were sentenced by Chief United States District Judge James C. Dever, III. BATTLE was sentenced to life imprisonment. SHARP was sentenced to 480 months imprisonment; WHITAKER was sentenced to 480 months imprisonment; ROBERTSON was sentenced to 262 months imprisonment; NATALIE LYNCH was sentenced to 132 months imprisonment; TREMAYNE LYNCH was sentenced to 450 months; WILLIAMS was sentenced to 90 months; ROBERT RICHARDSON was sentenced to 75 months imprisonment; MATTHEW LEAK was sentenced to 156 months imprisonment; ANDREW LEAK was sentenced to 132 months imprisonment; MASON was sentenced to 36 months imprisonment; WINN was sentenced to 70 months imprisonment; and ROY RICHARDSON was sentenced to 102 months imprisonment.
According to the investigation, BATTLE was the leader of this narcotics distribution organization. SHARP helped plan a brutal home invasion and was instrumental in the group selling kilos of crack cocaine.
During the violent home invasion WHITAKER and TREYMAYNE LYNCH were searching for drugs and money that resulted in a brutal rape of young mother while her small child watched. LYNCH also shot the mother’s boyfriend, the father of the child, during the home invasion twice. ROBERTSON participated in the home invasion by beating the already shot and bound boyfriend.
In addition to the home invasion, TREYMAYNE LYNCH was involved with three other exceedingly violent incidents. In 2 of them he walked up and started shooting at competitors and in the third he kidnapped someone who owed the group money and held him hostage for a couple of days repeatedly strangling the victim into unconsciousness, tying him to a tree and shooting a gun in front of him, beating him, and threatening to have WHITAKER burn his groin with heated keys.
WILLIAMS drove the home invasion crew to the victims house knowing they were going in armed and with masks to commit robbery. After the robbery, she drove the group to a hotel room and located someone to sell TREMAYNE LYNCH a gun. She also drove LYNCH to Washington, D.C. to avoid arrest.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Rocky Mount Police Department, Nash County Sheriff’s Office, Wilson County Sheriff’s Office, and Edgecombe County Sheriff’s Office. Assistant United States Attorney John Bowler is handling the prosecution for the government.
Storeowner Sentenced to Time-served for Stolen Identity SchemeRead the Press Release
PITTSBURGH, PA - A resident of Allegheny County has been sentenced in federal court to time served on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence on Bhavikkumar H. Koladiya, aka “Bob Patel”, of Monroeville, PA. Koladiya has been incarcerated in federal custody since his arrest in October 2013.
According to the information presented to the court, Koladiya, the operator of the “Atwood Xpress” in Oakland, stole identities from other persons which he used to open credit card accounts at U.S. Bank, Chase Bank, Discover card and others, and then bought merchandise, including diamonds, with the stolen credit cards.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Western Pennsylvania Financial Crimes Task Force (WPFCTF) for conducting this investigation. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Sex Offender Pleads Guilty to 'Sex Tourism,' Victimized Five Filipino ChildrenRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a prior sex offender pleaded guilty in federal court today to sexually abusing five separate child victims in the Philippines.
Kenneth Gaylord Stokes, 70, a U.S. citizen who resided near the city of Cebu in the Philippines, pleaded guilty before U.S. District Judge M. Douglas Harpool to five counts of engaging in illicit sexual conduct in foreign places.
Stokes has been in federal custody since his arrest on Dec. 3, 2012 and is being held without bond. Stokes has a prior conviction for the statutory rape of a 7-year-old child in the state of Washington.
In July 2012, a federal agent located a Craigslist advertisement from Stokes that offered photography services in the Philippines. Stokes and the agent communicated via e-mail for several months, during which time Stokes e-mailed to the agent photos of juvenile females, some of whom were in sexually explicit poses. The agent expressed his interest in meeting Stokes, who encouraged the agent to visit and indicated that he would help facilitate sexual liaisons.
On Dec. 3, 2012 the agent met Stokes at his residence in the Philippines. Stokes, who showed the agent a laptop computer with multiple images of child pornography, was arrested.
Investigators seized Stokes’ computers and conducted a forensic examination. They were able to determine the identities of five minor females (identified as Jane Doe #1, #2, #3, #4, and #5) who later told law enforcement officers that Stokes paid them to pose for the sexually explicit photos.
Under federal statutes, Stokes is subject to a sentence of up to 60 years in federal prison without parole, plus a fine up to $250,000, on each of the five counts. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Sanden Corp. Agrees to Plead Guilty to Price Fixing on Automobile Parts Installed in U.S. CarsRead the Press Release
Sanden Corp., an automotive parts manufacturer based in Gunma, Japan, has agreed to plead guilty and to pay a $3.2 million criminal fine for its role in a conspiracy to suppress and eliminate competition for the purchase of compressors used in air conditioning systems sold to Nissan North America Inc. for installation in vehicles manufactured and sold in the United States and elsewhere, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the Eastern District of Michigan in Detroit, Sanden conspired to fix the prices of compressors sold to Nissan. In addition to the criminal fine, Sanden has agreed to cooperate in the department’s ongoing investigation. The plea agreement is subject to court approval.
“Today’s charge is the latest in the Antitrust Division’s ongoing investigation of automobile parts suppliers,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division continues to vigorously prosecute companies and individuals that seek to maximize their profits through illegal, anticompetitive means.”
The department said that Sanden and its co-conspirator held meetings and conversations to discuss and agree upon the bids and price quotations submitted to Nissan for the purchase of compressors used in automotive air conditioning systems. Sanden’s involvement in the conspiracy lasted from as early as August 2008 until at least April 2009.
Including Sanden, 33 companies and 50 individuals have been charged in the department’s ongoing investigation into price fixing and bid rigging in the automotive parts industry. All of the charged companies have pleaded guilty or have agreed to plead guilty and to pay a combined total of more than $2.4 billion in fines.
Sanden is charged with fixing prices in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charges were brought by the Antitrust Division’s New York Office and the FBI’s New York Field Office, with the assistance of the FBI headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1–888–647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s New York Field Office at 212-384-1000.
Quincy, Illinois Man Pleads Guilty to Federal Bank Robbery ChargesRead the Press Release
St. Louis, MO – PIERRE LAMONT PARRISH pled guilty to the October 2, 2014, robbery of the Martinsburg Bank and Trust in Montgomery County, Missouri.
Parrish, Quincy, IL, pled guilty to one felony count of robbery of a federally insured institution before United States District Judge Ronald L. White. Sentencing has been set for May 1, 2015.
This charge carries a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Kirksville Office of the Federal Bureau of Investigation. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney’s Office.
Postal Employee Pleads Guilty to Mail TheftRead the Press Release
Contact: Steve Young
A former postal services employee who stole mail pled guilty January 23, 2015, in federal court in Sioux City.
Danny D. Miller, 55, from Ventura, Iowa, was convicted of theft of mail by a postal services employee.
At the plea hearing, Miller admitted that from about May 2013 through July 2014, while serving as the Postmaster for Forest City, Iowa, he opened mail, specifically pain medication parcels from the Department of Veteran’s Affairs addressed to a Forest City, military veteran. Miller further admitted to stealing the contents of the packages, namely Oxycodone.
Sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Miller remains free on bond previously set pending sentencing. Miller faces a possible maximum sentence of 5 years’ imprisonment, a $250,000 fine, $100 in special assessments, and up to one year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Jamie Bowers and was investigated by U.S. Postal Service Office of Inspector General.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-3051.
Pittsburgh Heroin Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
PITTSBURGH – Frank Currington, formerly of Pittsburgh, Pa. was sentenced to 60 months in prison for conspiring to distribute over 100 grams of heroin, United States Attorney David J. Hickton announced today.
Currington, 41, was sentenced in Pittsburgh by United States District Judge Nora Barry Fischer. Judge Fischer also imposed a four-year term of supervised release to follow the federal prison sentence.
Between 2011 and 2013, Currington invested thousands of dollars into the interstate heroin re-supply ventures of a large-scale heroin trafficking organization with several members from or associated with Pittsburgh’s Larimer neighborhood. Currington would thereafter receive his share of the heroin. In this manner, Currington received and re-distributed hundreds of bricks of heroin.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction and sentence in this case.
Peruvian Man Sentenced for Defrauding and Extorting Spanish-Speaking U.S. Residents through Fraudulent Call CentersRead the Press Release
A Peruvian man charged with running an operation that threatened and defrauded Spanish-speaking U.S. residents was sentenced today to more than 17 years in prison in federal district court in Miami, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced.
Juan Alejandro Rodriguez Cuya, 35, was sentenced to serve 210 months in federal prison to be followed by three years of supervised release for his operation of Angeluz Florida Corporation and call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements for nonexistent debts. In addition to his prison sentence, Rodriguez Cuya was ordered to forfeit assets.
In October 2014, Rodriguez Cuya was convicted by a jury after less than two hours of deliberation following a two-week trial before U.S. District Court Judge Patricia A. Seitz. The 26 charges against him included conspiracy, mail fraud, wire fraud and attempted extortion. His mother, Maria Luzula, pleaded guilty to all counts against her midway through trial and on Dec. 18, 2014, was sentenced to serve 165 months in prison.
“The victims of this case tell horrible stories of false threats made against them – threats of seized property, arrest and sometimes even deportation,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Justice Department will be particularly vigilant in cases such as this, in which individuals target and exploit specific populations.”
According to evidence presented at trial, the defendants’ employees in Peru used Internet-based telephone calls to threaten Spanish-speaking victims in the United States. The Peruvian callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that lawsuits would be brought against them. In reality, the victims had never ordered these products and nothing had been delivered.
Additional evidence at trial established that the call center employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation or seizure of property. Thousands of victims succumbed to these threats and paid fees that they did not owe.
Victims who testified at trial spoke of how anxious the calls made them. The victims were so afraid of the threats that they paid fees they simply could not afford. At sentencing, victims told the judge that they have lost trust in people and that they still become nervous when their phones ring. Also at sentencing, a victim told the judge that, like many other people, she came to this country for opportunity and a better life, but the crime made her feel she was not in the United States. It made her feel assaulted without any recourse.
“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Wilfredo A. Ferrer for the Southern District of Florida. “In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division Consumer Protection Branch to protect our consumers from fraud.”
“The USPIS will continue to aggressively investigate and go after those who defraud citizens of their hard earned money through the use of threats and other abusive tactics,” said Postal Inspector in Charge Ronald Verrochio of the USPIS Miami Division.
Acting Assistant Attorney General Branda commended the USPIS for its investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case was prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg of the Civil Division’s Consumer Protection Branch.
Peruvian Man Sentenced for Defrauding and Extorting Spanish-Speaking U.S. Residents through Fraudulent Call CentersRead the Press Release
A Peruvian man charged with running an operation that threatened and defrauded Spanish-speaking U.S. residents was sentenced today to more than 17 years in prison in federal district court in Miami, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced.
Juan Alejandro Rodriguez Cuya, 35, was sentenced to serve 210 months in federal prison to be followed by three years of supervised release for his operation of Angeluz Florida Corporation and call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements for nonexistent debts. In addition to his prison sentence, Rodriguez Cuya was ordered to forfeit assets.
In October 2014, Rodriguez Cuya was convicted by a jury after less than two hours of deliberation following a two-week trial before U.S. District Court Judge Patricia A. Seitz. The 26 charges against him included conspiracy, mail fraud, wire fraud and attempted extortion. His mother, Maria Luzula, pleaded guilty to all counts against her midway through trial and on Dec. 18, 2014, was sentenced to serve 165 months in prison.
“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida. “In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division Consumer Protection Branch to protect our consumers from fraud.”
“The victims of this case tell horrible stories of false threats made against them – threats of seized property, arrest and sometimes even deportation,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Justice Department will be particularly vigilant in cases such as this, in which individuals target and exploit specific populations.”
According to evidence presented at trial, the defendants’ employees in Peru used Internet-based telephone calls to threaten Spanish-speaking victims in the United States. The Peruvian callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that lawsuits would be brought against them. In reality, the victims had never ordered these products and nothing had been delivered.
Additional evidence at trial established that the call center employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation or seizure of property. Thousands of victims succumbed to these threats and paid fees that they did not owe.
Victims who testified at trial spoke of how anxious the calls made them. The victims were so afraid of the threats that they paid fees they simply could not afford. At sentencing, victims told the judge that they have lost trust in people and that they still become nervous when their phones ring. Also at sentencing, a victim told the judge that, like many other people, she came to this country for opportunity and a better life, but the crime made her feel she was not in the United States. It made her feel assaulted without any recourse.
“The USPIS will continue to aggressively investigate and go after those who defraud citizens of their hard earned money through the use of threats and other abusive tactics,” said Postal Inspector in Charge Ronald Verrochio of the USPIS Miami Division.
Acting Assistant Attorney General Branda commended the USPIS for its investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case was prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg of the Civil Division’s Consumer Protection Branch.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Pascua Yaqui Man Sentenced to 70 Months Imprisonment for AssaultRead the Press Release
TUCSON, Ariz. – On Jan. 22, 2015, Peter Ron Acuna, 26, of Tucson, Ariz., a member of the Pascua Yaqui Tribe, was sentenced by U.S. District Judge Rosemary Marquez to 70 months of imprisonment, to be followed by a three year term of supervised release. Acuna pleaded guilty on April 23, 2014 to assault resulting in serious bodily injury.
On Nov. 18, 2013, Pascua Yaqui Tribal Police officers responded to a report of a fight occurring on the Pascua Yaqui Indian Nation, in Tucson, Ariz. Officers found an unconscious victim on the ground, covered in blood. Witnesses stated that the defendant had confronted the victim about his presence in the neighborhood and a fight broke out. Acuna and one other combatant combined in assaulting the victim by striking and kicking his head and face. Even after the victim lost consciousness, the two continued to kick the victim’s head. The victim was medically treated for an orbital skull fracture, and multiple lacerations to his face, and he continues to suffer from residual medical concerns.
The investigation in this case was conducted by the Pascua Yaqui Tribal Police. The prosecution was handled by Lawrence C. Lee, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-14-00037 TUC RM
RELEASE NUMBER: 2015-008_Acuna
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
North Carolina Couple Sentenced to Pay $342,447 in Restitution for Participating in Health Care Kickback SchemeRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CRYSTAL FINDLEY MCDONALD, and her husband, COREY MCDONALD (the “MCDONALDs”), ages 32 and 43, respectively, were sentenced after previously pleading guilty to a one-count Bill of Information for conspiracy to defraud the United States and to pay and receive illegal remuneration.
U.S. District Judge Jay C. Zainey sentenced both to 5 years’ probation. As a condition of probation, the MCDONALDs, residents of North Carolina, were ordered to spend 12 months in home detention. In addition, the MCDONALDs were ordered to pay $342,447 in restitution.
According to court documents, the defendants were paid illegal kickbacks to refer patients to Care Concepts for Durable Medical Equipment. The equipment was neither needed nor wanted by the patients, but was reimbursable by Medicare. The defendants also paid illegal kickbacks to their employees to procure such referrals.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the Office of Inspector General for the United States Department of Health and Human Services in investigating this matter. Assistant U.S. Attorney Patrice Harris Sullivan was in charge of the prosecution.
New York Corrections Officer Sentenced to 14 Years for Attempted Child EnticementRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington today sentenced Jude Thaddeus Danahy (35, Buffalo, NY) to 14 years in federal prison for attempted enticement of a child for sexual activity. The Court also ordered him to forfeit the equipment he had used to commit the offense. Danahy pleaded guilty on August 27, 2014.
According to court documents, between June 2013 and July 2014, Danahy communicated via email and text messages with an undercover agent that he believed was the mother of an 11-year-old girl. Danahy responded to an online advertisement and expressed in graphic detail his desire to engage in sexual acts with the “child.” He repeatedly sent graphic messages to the “mom” and attempted to persuade and induce the “child’s” assent by sending her a princess dress. Danahy also repeatedly solicited pornographic images of the “child,” and he mailed the “mom” a digital camera so that she could send him images. Danahy was arrested on July 1, 2014.
“It is especially egregious when a person in a position of authority, like this corrections officer, attempts to victimize our children,” said Susan L. McCormick, special agent in charge of HSI Tampa. “HSI will continue to aggressively pursue criminals who prey on the most vulnerable members of our communities.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New York Attorney Found Guilty of Subscribing to False Federal Tax ReturnsRead the Press Release
An attorney licensed to practice in New York was found guilty yesterday of three counts of subscribing to false tax returns for the 2007, 2008 and 2009 tax years following a bench trial before U.S. District Judge Vincent L. Briccetti, Principal Deputy Assistant Attorney General Caroline D. Ciraolo for the U.S. Department of Justice’s Tax Division and U.S. Attorney Preet Bharara for the Southern District of New York, announced today.
Matthew Libous was found not guilty by Judge Briccetti of false subscription counts for his 2010, 2011 and 2011 amended returns and not guilty of one count of obstructing the Internal Revenue Service (IRS).
“Yesterday’s verdict was a just conclusion for Matthew Libous’s repeated, willful failure to report all his income to the IRS over a period of years,” said U.S. Attorney Bharara. “As a practicing attorney, Libous knew better. My office will continue to make every effort to ensure that everyone pays his or her fair share of taxes.”
“Yesterday’s conviction should serve as clear notice that the Tax Division, working with IRS Criminal Investigation and the Offices of the U.S. Attorneys, will vigorously enforce our nation’s criminal tax laws and prosecute those individuals, including legal professionals, who willfully file false federal tax returns,” said Principal Deputy Assistant Attorney General Ciraolo.
According to the superseding indictment and the evidence presented at trial, Libous engaged in the practice of law from 2006 through 2008. Libous deposited the fees he received into his personal bank account but never reported them on his tax return. In 2008, Libous became a minority partner and manager of Wireless Construction Solutions LLC (WCS), a company that maintained cellular telephone towers. Libous caused WCS to pay thousands of dollars in his personal expenses on his behalf from 2008 to 2011. In returning yesterday’s verdict following a three-day bench trial, Judge Briccetti said that he found that Libous willfully failed to report the income from his law practice in 2007 and 2008, and the income he received as a result of his causing WCS to pay his personal expenses in 2008 and 2009.
Libous faces a statutory maximum sentence of three years in prison for each of the false subscription convictions. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing is scheduled for April 29.
This prosecution is being handled by the U.S. Attorney’s Office for the Southern District of New York, White Plains Division. Assistant U.S. Attorney James McMahon for the Southern District of New York and Special Assistant U.S. Attorney Andrew Kameros of the Tax Division are in charge of the prosecutions.
Missouri Man Sentenced to 9+ Years for Overland Park Bank RobberyRead the Press Release
KANSAS CITY, KAN. – A Missouri man was sentenced Tuesday for robbing a bank in Overland Park, U.S. Attorney Barry Grissom said.
Alvin J. Williams, 24, Kansas City, Mo., was sentenced to 114 months in federal prison.
Williams pleaded guilty to one count of armed robbery and one count of using a firearm during the robbery. In his plea, he admitted that on Feb. 27, 2014, he and two co-defendants robbed Inter-State Federal Savings at 8620 Metcalf in Overland Park. They entered the bank about noon and held employees at gunpoint before fleeing with stolen money.
Co-defendant Randy A. Cornelius, 21, Kansas City, Mo., was sentenced to 57 months, and co-defendant Allen J. Williams, 24, Kansas City, Mo., is awaiting sentencing.
Grissom commended the Overland Park Police Department, the Kansas City, Mo., Police Department, the FBI and Assistant U.S. Attorney Tris Hunt for their work on the case.
Miami Telemarketer Sentenced for FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on January 23, 2015, Kyle Richard Robertson, 32, of Miami, FL, was sentenced in the United States District Court in East St. Louis, Illinois on one count of conspiracy to commit mail and wire fraud in connection with telemarketing, in violation of Title 18, United States Code, Section 1349. Robertson was sentenced to 28 months in prison, to be followed by two years of supervised release. Robertson was also ordered to pay a $500 fine and a $100 special assessment.
The investigation determined that Robertson was a manager at C&G Marketing Associates, LLC, also known as Premier Timeshare Solutions (PTS). Working out of office buildings in Florida, PTS, UMS, and CVS targeted owners of timeshares throughout the United States and Canada. In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada.
This prosecution is one of nearly 75 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney William Coonan.
Mexican National Sentenced to 15 Years for Participating in a Brutal Family Run Sex Trafficking OrganizationRead the Press Release
The Department of Justice announced a sentencing and guilty plea for two members of a family run sex trafficking organization based in southern Florida. Rafael Alberto Cadena-Sosa was sentenced by U.S. District Court Judge Joes E. Martinez to serve 15 years in prison and Carmen Cadena pleaded guilty before U.S. District Court Judge Jose Martinez for participating in a brutal family run sex trafficking organization.
Rafael Alberto Cadena-Sosa
Cadena-Sosa, 46, a Mexican national, was sentenced to serve 15 years in prison for conspiring and holding a person in a condition of involuntary servitude. Judge Martinez also ordered Cadena-Sosa to pay $1,261,563 in restitution to sixteen different victims.
On Oct. 9, 2014, Cadena-Sosa pleaded guilty to conspiracy and to holding a person in a condition of involuntary servitude. As part of his plea, Cadena-Sosa admitted that he, along with other family members and associates, approached women and girls, some as young as fourteen years old, in Veracruz, Mexico, and lured them into coming to the United States using false promises of legitimate jobs. After illegally smuggling women and girls into the United States, Cadena-Sosa and other family members imposed a smuggling debt and used brutal physical force and violence, sexual assaults, and threats of death and bodily harm to the victims and their families to compel the victims to engage in prostitution 12 hours a day, six days a week and turn over the proceeds to the defendants to pay down the smuggling debts the defendants imposed. Cadena-Sosa and other family members would also search for victims who had run away from a brothel and subject them to beatings and rapes upon capture.
Carmen Cadena
Cadena, 48, a Mexican national, pleaded guilty to one count of conspiracy for conspiring with other members of the Cadena organization to unlawfully encourage and bring undocumented victims into the U.S.; unlawfully transport victims within the U.S.; unlawfully harbor victims within the U.S.; unlawfully coerce and transport victims, including victims as young as 14-years-old, into the U.S. for purposes of illegal sexual activity; and unlawfully use extortionate means to collect extensions of credit made to the victims.
Cadena faces a maximum sentence of five years in prison and a fine of $500,000. Sentencing is scheduled to occur on May 18, 2015. According to the terms of the plea agreement, the parties will jointly recommend the maximum sentence of five years in prison and $1,261,563 in restitution to 16 victims.
Sixteen defendants were charged in a superseding indictment filed in 1998. Mexican authorities arrested Rafael Alberto Cadena-Sosa and Carmen Cadena and extradited them to the United States in November 2013 and December 2014, respectively. Four other members of the Cadena sex trafficking organization have been convicted, including Cadena-Sosa’s uncle, Rogerio Cadena, who pleaded guilty in 1999 and was sentenced to 15 years; Cadena-Sosa’s brother, Abel Cadena-Sosa, who was convicted in Mexico and sentenced to 24 years, and two other brothers, Hugo and Juan Luis Cadena-Sosa—Carmen Cadena’s husband—, who pleaded guilty in 2002 and 2008, and were sentenced to five years and 15 years respectively. Six other defendants previously pleaded guilty in federal court in connection with the scheme, and one was convicted in state court for a murder outside a Cadena-run brothel.
Since 2009, the Departments of Justice and Homeland Security as well as law enforcement agencies in Mexico, have worked to develop high-impact prosecutions to dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims, and reunite victims with their children held under the trafficking networks’ control. These efforts have resulted in numerous successful prosecutions, including U.S. federal prosecutions of over 50 defendants in multiple cases in Georgia, New York, Florida, and Texas since 2009.
“Rafael Cadena-Sosa and Carmen Cadena preyed on vulnerable girls and young women and lured them to the United States with the promise of a better life,” said U.S. Attorney Wilfredo A. Ferrer for the Southern District of Florida. “Instead, Cadena-Sosa and his family and associates robbed these victims of their freedom and dignity, brutally beat them and subjected them to modern-day slavery. The dismantling of the Cadena organization reaffirms our unwavering commitment to prosecute those who seek to profit at the expense of the suffering of to others. We will continue to work with our domestic and international law enforcement partners to bring justice to those who engage in this inhumane practice. This case is one example of bilateral progress to effectively dismantle human trafficking networks operating across the U.S.-Mexico border.”
“No human being should have to endure the violence and brutality these young women and girls suffered at the hands of the Cadena organization,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “These violations of the victims’ individual rights and freedom are intolerable and the Department of Justice will continue in its commitment to bringing human traffickers to justice and restore the rights and dignity of the courageous survivors of this crime.”
“The long prison sentence imposed upon Rafael Alberto Cadena-Sosa is a testament to the cooperation and commitment of numerous law enforcement agencies both here and in Mexico to stop this appalling criminal activity,” said Special Agent in Charge George L. Piro of the FBI Miami Office. “We will continue working with our partners to dismantle human trafficking networks such as this one that operate in the shadows and brutalize their victims.”
U.S. Attorney Ferrer and Acting Assistant Attorney General Gupta praised the collaborative efforts of multiple law enforcement agencies throughout the investigation and prosecution, including the Federal Bureau of Investigation, the Department of Homeland Security’s Customs and Border Protection and Immigration and Customs Enforcement, the Bureau of Alcohol, Tobacco and Firearms, the Office of International Affairs, Criminal Division, U.S. Department of Justice, Florida Department of Law Enforcement, Palm Beach County Sheriff’s Office, West Palm Beach Police Department, Okeechobee County Sheriff’s Office, Fort Pierce Police Department, Avon Park Police Department, Boynton Beach Police Department, and Lee County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Adam McMichael and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced for Meth, Illegal ReentryRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was sentenced in federal court today for his role in the conspiracy to distribute methamphetamine and for illegally reentering the United States after having been deported.
Bardomiano Jungo, 36, a citizen of Mexico, was sentenced by U.S. District Judge Gary A. Fenner to 10 years and one month in federal prison without parole.
A law enforcement officer encountered co-defendant Jose Angel Loaiza, 27, of Lamirada, Calif., at the Greyhound bus station at 1101 Troost Ave., Kansas City, Mo., on March 26, 2013. Loaiza was carrying three bundles containing a total of approximately 1.4 kilograms of pure methamphetamine inside a red backpack. While the officer was speaking to him, Loaiza’s cell phone rang and he answered in Spanish, “I’m here.”
The officer who arrested Loaiza told the other officers that someone was probably waiting in the parking lot to pick up Loaiza. Officers saw Jungo waiting in a Ford Explorer, then start to drive out of the parking lot without picking anyone up. An officer stopped Jungo and began to question him; Jungo’s cell phone rang and displayed the same Long Beach, Calif., telephone number that had called Loaiza a few minutes earlier.
Jungo identified himself under a false name and showed law enforcement officers a Kansas driver’s license and Social Security card with that name. That Social Security number, however, belongs to an Inglewood, Calif., resident.
After being convicted in Jackson County Circuit Court of possession of a controlled substance with intent to distribute, Jungo was deported from the United States on March 20, 2002. Jungo admitted that he was illegally in the United States.
Loaiza was sentenced to seven years and three months in federal prison without parole after pleading guilty to his role in the conspiracy.
This case was prosecuted by Assistant U.S. Attorney Justin Davids and Special Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Social Security Administration, Office of Inspector General.
Member of “Traveling Group” of FraudstersRead the Press Release
BOISE — Brandt Stewart, 29, of Southfield, Michigan, pleaded guilty today to aggravated identity theft and credit card fraud, U.S. Attorney Wendy J. Olson announced. The defendant appeared before U.S. Magistrate Judge Ronald E. Bush at the federal courthouse in Boise. Sentencing is set for April 28, 2015, before Chief United States District Judge B. Lynn Winmill.
According to the plea agreement, Brandt Stewart, co-defendants Myron Pardon and Matthew Lane and others, were part of a “traveling group” from the Detroit, Michigan area that traveled to southern Idaho in December 2013 and February 2014, to make purchases at large “box stores” using counterfeit credit cards. Stewart knowingly and with intent to defraud used counterfeit credit cards to purchase “general use” charge cards at ten stores in Twin Falls, Boise and Meridian causing losses in the amount of $4,105.43. Some of the credit cards fraudulently used by Stewart belonged to actual account holders, thus constituting aggravated identity theft.
Stewart, Pardon and Lane were indicted by a federal grand jury on April 9, 2014. Co- defendant Pardon has pleaded guilty to similar charges and will be sentenced on February 2, 2015, before Judge B. Lynn Winmill. Trial is currently set for February 2, 2015, for co-defendant Lane at the federal courthouse in Boise.
The charge of fraudulent use of a credit card carries a penalty of not more than 10 years in prison, a maximum fine of $250,000, and three years of supervised release. The charge of aggravated identity theft carries a penalty of not more than 10 years in prison with a mandatory minimum penalty of not less than two years in prison consecutive to the penalty imposed for other counts.
“Vigorous prosecution of those who travel here to carry out schemes to defraud Idaho citizens and businesses is a priority of this United States Attorney’s Office,” said Olson. “My office will work effectively and aggressively with local police departments and federal law enforcement agencies to put a quick end to these schemes.”
The case is the result of a joint investigation result of the Boise Police Department, United States Secret Service, and U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Las Cruces Man Sentenced to Federal Prison for Unlawful Possession of a FirearmRead the Press Release
ALBUQUERQUE – Justin E. Clark, 22, of Las Cruces, N.M., was sentenced today in Las Cruces federal court to 63 months in federal prison for violating the federal firearms laws. Clark will be on supervised release for 3 years after completing his term of incarceration.
Clark was arrested on April 22, 2014, on a criminal complaint charging him with distribution of a controlled substance, possession of a machine gun, possession of a firearm by a drug addict, possession of a firearm with an obliterated serial number, and possession of a silencer. Clark has been in federal custody since his arrest.
On Sept. 3, 2014, Clark pled guilty to a two-count felony information charging him with being a drug addict in possession of a firearm, and unlawfully possessing a machinegun. In his plea agreement, Clark admitted that on April 18, 2014, he illegally purchased and possessed a fully automatic machinegun that had an obliterated serial number and silencer. Clark further admitted that he possessed the firearm at a time when he was addicted to crack cocaine.
This case was investigated by the Las Cruces office of the FBI and the New Mexico HIDTA Regional Interagency Drug Task Force (RIDTF)/Metro Narcotics Task Force. The case was prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Region VII Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department and the Doña Ana County Sheriff’s Office. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Las Cruces Man Sentenced for Unlawful Possession of Forged and Counterfeit Postage StampsRead the Press Release
ALBUQUERQUE – James H. Clark, Jr., 62, of Las Cruces, N.M., was sentenced late yesterday afternoon in Las Cruces federal court for possession with intent to use forged and counterfeited postage meter stamps. Clark was sentenced to five years of probation and was ordered to pay $365,827.00 in restitution to the U.S. Postal Service.
Clark, the owner and operator of a business selling books through internet websites, was indicted on Feb. 19, 2014, and charged with possession with intent to use forged and counterfeited postage meter stamps. He pled guilty to the indictment on April 10, 2014.
In entering his guilty plea, Clark admitted that on Oct. 19, 2010, he knowingly possessed 1,527 forged and counterfeited postage meter stamps that he created by copying original postage meter stamps that he purchased from stamps.com. Clark also admitted that he intended to use the forged and counterfeited stamps to mail packages through the U.S. Postal Service. He acknowledged that the total face value of the forged and counterfeited stamps was $9,142.98. In his plea agreement, Clark acknowledged that the U.S. Postal Service sustained $365,827.00 in losses as a result of his criminal activities, and agreed to pay restitution in that amount.
This case was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office.
KC Woman Sentenced for Tax Fraud Scheme, Stealing Clients' RefundsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., woman was sentenced in federal court today for a tax fraud scheme in which she stole portions of her client’s inflated tax refunds.
Dinette Kay Cadenhead, also known as Kay Taylor, 47, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 18 months in federal prison without parole. The court also ordered Cadenhead to pay $14,082 in restitution to the Internal Revenue Service, which represents the amount Cadenhead skimmed from the inflated tax refunds of nine of her clients.
On July 16, 2014, Cadenhead pleaded guilty to the theft of public money. Cadenhead admitted that she prepared federal income tax returns for clients containing material false and fraudulent claims. Cadenhead, working at her office in Raytown, Mo., or from her residence, assisted at least 12 individuals to file at least 29 false and fraudulent income tax returns for the tax years 2008 through 2010. The tax loss associated with those false returns is $109,627. The aggregate tax loss, including relevant conduct is $134,237.
Cadenhead admitted that she utilized false deductions to increase her clients’ refunds. The false entries included fraudulent charitable deductions, medical expenses, accounting expenses, attorney expenses, unreimbursed employee expenses and other expenses. She also included false IRA deductions on 18 of the returns. She reported net business losses, false energy credits and fraudulent dependents for some clients. Cadenhead electronically filed many of the returns from her home computer, but indicated the returns were self-prepared.
Cadenhead charged her clients a return preparation fee of between $65 and $600 per return. However, without the knowledge of nine of her clients, Cadenhead diverted a portion of the fraudulent refund into her own bank account, which increased the amount she actually received for each return. Cadenhead directed over $14,000 into her bank accounts by splitting her clients’ refunds without their knowledge or permission.
The specific charge to which Cadenhead pleaded guilty is related to her unauthorized splitting of her clients’ refunds without their knowledge or permission. Cadenhead admitted that she stole portions of her clients’ inflated tax refunds, totaling $14,082, between Feb. 12, 2010, and March 14, 2012.
This case was prosecuted by Assistant U.S. Attorney Roseann A. Ketchmark. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue Criminal Tax Investigation Bureau.
Johnson County Tax Preparer Sentenced for Filing False Tax Return, Wire FraudRead the Press Release
KANSAS CITY, KAN. - A tax preparer in Johnson County was sentenced Tuesday to 78 months in federal prison for filing false tax returns that cost a Kansas company more than $744,000, U.S. Attorney Barry Grissom said.
John M. Moore, 53, Lenexa, pleaded guilty to one count of filing a false tax return and one count of wire fraud. In his plea, he admitted a company he owns, Accent Payroll Services (APS), was hired to provide payroll processing services for Tytan International L.L.C. of Lenexa, Kan. From 2008 to 2010, APS was responsible for paying the wages of Tytan’s employees, withholding employment taxes, filing Tytan’s employment tax returns on Internal Revenue Service form 941 and paying withheld employment taxes to the IRS.
Moore transferred more than $2 million in employment tax withholdings from Tytan’s bank account to his company’s bank account. However, he only paid the IRS approximately $1.3 million. To keep Tytan from receiving notices from the IRS that taxes were not paid, Moore gave the IRS an address for Tytan at a post office box he controlled.
“These victims trusted Mr. Moore to properly remit their taxes, but instead he used their funds for his own purposes. Unfortunately, these victims are left holding the bag,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. “Businesses who utilize a third party for paying their payroll taxes must realize that if the taxes aren’t paid, they are ultimately responsible for the tax liability. The IRS will work with victims to set up payment plans or possibly reduce penalties.”
Grissom commended the Internal Revenue Service, the FBI and Assistant U.S. Attorney Chris Oakley for their work on the case.
Immokalee Man Sentenced for Theft of Government Money and Aggravated Identity TheftRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Ernest Freeman, Jr. to three years and six months in federal prison for theft of government money and aggravated identity theft. He was also ordered to serve a three-year term of supervision following his release from prison. In addition, the Court entered a special assessment in the amount of $2,200, due immediately, and imposed a fine of $7,500. Restitution is yet to be determined. A federal jury found him guilty on October 27, 2014.
According to testimony and other evidence presented at trial, between September 2011 and March 2012, Freeman signed and deposited 11 federal income tax refund checks into his business account at Fifth Third Bank, of which he was the sole beneficiary. The checks were issued in the names of others who had not given Freeman authority to cash the checks. In total, he stole more than $100,000 belonging to the U.S. Department of the Treasury.
This case was investigated by the United States Secret Service and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.