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16 January 2015
U.S. Attorney's Office Filed 167 Firearms Indictments Last YearRead the Press Release
The United States Attorney’s Office for the Northern District of Ohio filed 167 firearms indictments last year, U.S. Attorney Steven M. Dettelbach announced.
“Our office and our law enforcement partners will continue to work collaboratively to target the worst of the worst,” said Steven M. Dettelbach. “These include people who carry firearms, ammunition and sometimes body armor despite prior felony convictions, or those who help prohibited people to obtain firearms.”
“ATF’s mission is to combat violent crime and protect the public,” said Donald J. Soranno, Special Agent in Charge of the Columbus Field Division. “We will continue to actively investigate the criminal use of firearms and strive to make our communities safer for the people who live and work there.”
Broken down by geography in the district, the most indictments filed came out of the Cleveland office, with 86. That was followed by the Youngstown office (34), Akron office (27) and Toledo office (20).
Details of selected cases:
Operation Samson II: Sixty people were indicted and 110 firearms were seized as part of a summerlong enhanced enforcement initiative targeting the criminal possession, use and sale of firearms in Greater Cleveland. Forty-two people were indicted in federal court while 18 people were indicted in state court. Charges include engaging in the business of dealing firearms without a license, being a felon in possession of firearms and ammunition, possession of unregistered firearms that had been modified (sawed-off shotguns), possession and sale of firearms with obliterated serial numbers and related drug counts.
The indictments are the result of “Operation Samson II,” which was organized around three operational groups. The first used undercover operations to investigate people known to criminally possess, use and sell firearms, as well as people possessing firearms while conducting drug activities. The second group, referred to as the “Follow the Gun Group,” used firearms trace data and ballistics information from the National Ballistics Information Network to pursue leads related to firearms that have been diverted from legal commerce to criminal use. The third group involved ATF Industry Operations conducting inspections at Cleveland-area federal firearms licensees to ensure that dealers are selling firearms in accordance with federal law and regulations.
United States v. Barnette: Jeremy P. Barnette, 28, of Ravenna, was charged with making a false statement to a federally licensed firearms dealer. The indictment alleges that on or about March 27, 2014, Barnette, in connection with the acquisition of the following firearms: a Norinco, Model 84S-1, 5.56x45 rifle; a Ruger, Model 03800, 45 ACP pistol; and a Glock, Model 19, 9mm pistol, from Ohio Trading, 8855 State Street, NE, Louisville, Ohio, stated on the Firearm Transaction Report that he was purchasing the firearms for himself, when he was, in fact, purchasing the firearms for another individual who was a convicted felon. His case remains pending.
United States v. Powell: Lewis Powell, 37, of Warren, was sentenced to nearly 13 years in prison for of being an unlicensed dealer willfully engaged in the business of dealing firearms and conspiracy to possess with intent to distribute heroin and cocaine. Powell sold 20 firearms, including three with obliterated serial numbers, as well are heroin, according to court documents.
United States v. Green: Michael Green, 34, of Niles, was sentenced to 10 years in prison for being a felon in possession of firearms, ammunition and body armor. Green possessed a MAADI, model RML, 7.62” x 39” rifle; a Ruger, model SR40, .40 caliber pistol; 97 rounds of 7.62” x 39” ammunition; 16 rounds of .40 caliber ammunition and body armor after he had previously been convicted of burglary, assault on a peace officer and failure to comply with order or signal of a police officer.
United States v. Thompson et. al.: Jemel E. Thompson, 25, of Ashtabula, and Maranda M. Rabenold, 31, of Madison, pleaded guilty to firearms violations last year.
On or about August 8, 2014, Thompson was in possession of ammunition, after he had been previously convicted of arson in the Oakland County, Michigan, Circuit Court. On or about June 16, 2014, Rabenold, aided and abetted by Thompson, made false statements to the Great Outdoors Store, North Kingsville, Ohio in connection with the purchase of a HiPoint, 9mm pistol. On or about July 19, 2014, Rabenold, aided and abetted by Thompson, made false statements to LWS LJC, Inc., Jefferson, Ohio in connection with the purchase of a HiPoint JCP pistol. Thompson also pleaded guilty to heroin charges.
Both are scheduled to be sentenced in March.
Firearm prosecution statistics for calendar year 2002 through 2013 are as follows:
2002: 117 indictments
2003: 155 indictments
2004: 184 indictments
2005: 220 indictments
2006: 187 indictments
2007: 191 indictments
2008: 157 indictments
2009: 156 indictments
2010: 166 indictments
2011: 218 indictments
2012: 176 indictments
2013: 207 indictments
Towson Man Exiled to 15 Years in Prison for Drug Possession, Illegal Possession of A Firearm and Witness TamperingRead the Press Release
Also Admitted to a Shooting in Baltimore City
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander, sentenced Mukengi Wilson, age 41, of Towson, Maryland, today to 15 years in prison followed by five years of supervised release for possessing with intent to distribute crack; being a felon in possession of a firearm; and attempting to tamper with a witness.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to Wilson’s plea agreement, on October 5, 2013, law enforcement officers saw Wilson engage in several hand-to-hand drug transactions at a narcotics shop operating at the intersection of East Lafayette and North Montford Avenues in Baltimore. In each transaction, Wilson received cash from the customer in exchange for drugs. Two officers wearing vests labeled “POLICE” approached Wilson in a vehicle. When Wilson saw the officers, he attempted to flee. He threw small objects to the ground from his left hand, and reached into his waistband and removed a clear plastic bag and threw it to the ground. The officers arrested Wilson and recovered the items from the ground. The small objects from Wilson’s left hand were two zip lock baggies containing crack cocaine. The clear bag contained nineteen zip lock baggies, each of which contained crack cocaine.
After his arrest, Wilson spoke with officers and informed them that there was a gun in the basement in his girlfriend’s house at 2301 East Lafayette Street. He stated that the residents of the house did not know that the gun was there. Wilson also drew a map showing the location of the gun. Officers went to the house and were given consent to search the house. One of the officers went to the basement and found a 9mm semiautomatic handgun in the location indicated by Wilson in the hand-drawn map. The gun was loaded with one round of ammunition in the chamber and three rounds of ammunition in the magazine. The hammer of the gun was cocked. Wilson had previously been convicted of a felony and was prohibited from possessing a gun or ammunition.
In addition, from the time of Wilson’s federal indictment on November 13, 2013 until a superseding indictment was returned on May 21, 2014, Wilson, who was detained pending trial, made repeated telephone calls to a witness, encouraging the witness to give false testimony in U.S. District Court. The telephone calls were made on recorded, monitored jailhouse telephone systems.
Wilson also admitted that on September 23, 2013, he shot at a man referred to as “Love,” after the man sped through the intersection of East Lafayette and North Montford Avenues. Although the vehicle crashed, “Love” was able to drive away.
United States Attorney Rod J. Rosenstein commended the ATF, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Scott A. Lemmon, who prosecuted the case.
Stearns County Man Charged in Murder-for-hire PlotRead the Press Release
United States Attorney Andrew M. Luger today announced a criminal complaint charging ROBERT JAMES SCHUELLER, 29, in a murder-for-hire plot targeting the fiancé of his former paramour. SCHUELLER is charged with the use of interstate commerce facilities in the commission of murder-for-hire, in violation of 18 U.S.C. §1958(a).1 The defendant appeared this afternoon before Magistrate Judge Tony Leung in U.S. District Court in St. Paul, Minnesota.
“This defendant is charged with orchestrating a murder-for-hire plot,” said Assistant U.S. Attorney Julie Allyn. “Fortunately for the intended victim in this case, the contract killing was never carried out. The FBI and Stearns County Sheriff’s Office pursued diligently this investigation, and we are grateful for their successful efforts to keep Minnesotans safe from violence.”
According to the complaint and documents filed in court, ROBERT SCHUELLER is the President of Nomad Pipeline Services (Nomad). Between approximately May 2013 and August 2013, SCHUELLER, who is married, was engaged in an extramarital affair with R.T., then an employee of Nomad. Approximately three months after R.T. ended the relationship with SCHUELLER, SCHUELLER learned that R.T. was in a relationship with C.A. SCHUELLER subsequently tried to reignite the relationship with R.T., but was rebuffed.
According to the complaint and documents filed in court, on February 6, 2014, SCHUELLER contacted another employee of Nomad, W.E. SCHUELLER knew W.E. had several prior felony convictions and had served time in prison. He asked if W.E. maintained contact with anyone from prison. When W.E. answered in the affirmative, SCHUELLER told W.E that he wanted to hire someone to murder C.A. On February 13, 2014, W.E. pretended to have identified a former prison associate who may be willing to murder C.A. for SCHUELLER.
According to the complaint and documents filed in court, sometime in March 2014, SCHUELLER sent a package to W.E. containing $10,000 in cash and two of his own business cards, on which he had written C.A.’s name and information about where C.A. worked. On May 2, 2014, W.E. called SCHUELLER and told him that he was unable to find someone to carry out the murder. After the phone call, SCHUELLER texted W.E., “burn those business cards.” W.E. subsequently returned the $10,000 to SCHUELLER.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Stearns County Sheriff’s Office.
This case is being prosecuted by Assistant United States Attorneys Julie E. Allyn and Steven L. Schleicher.
Defendant Information: ROBERT JAMES SCHUELLER, 29
Farming Township, Minn.
Charge: • Use of interstate commerce facilities in the commission of murder-for-hire, 1 countStaunton Woman Pleads Guilty to Wire FraudRead the Press Release
LYNCHBURG, VIRGINIA – A Staunton, Virginia woman, who worked as a financial advisor for a Staunton-based branch of a national bank chain, pled guilty today in the United States District Court for the Western District of Virginia in Lynchburg to wire fraud charges.
Kirsten Flynn Hawkins, 45, of Staunton, Va., waived her right to be indicted and pled guilty to a three count Information charging her with three separate counts of wire fraud. Hawkins will be sentenced on May 5, 2015 and faces a maximum possible penalty of up to 30 years in prison and/or a fine of up to $1,000,000 for each of the three charges for which she was convicted. In addition, Hawkins’ plea agreement calls for restitution to be made to her victims in an amount of approximately $500,000.
“Through a series of lies and deceitful measures, Ms. Hawkins betrayed the trust of those who gave her control of their finances,” Acting United States Attorney Anthony P. Giorno said today. “I only hope the restitution to be ordered by the court in this matter can restore to the victim the money which was stolen.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Daniel Bubar, Hawkins worked as a financial advisor for “Bank One.” During that time, between August 2011 and August 2014, the defendant devised a scheme to defraud and obtain money though false representations and promises.
Evidence showed that it was the purpose of the scheme for Hawkins to take control of “Victim One’s” various bank and investment accounts, which were located in “Bank One.” At various times between 2011 and 2014 and on the three separate occasions charged, Hawkins caused money to be transferred from the accounts of Victim One to her personal banking accounts. The funds were used to pay various living expenses, utilities, rent, travel, jewelry, clothing, eating out and to provide other economic benefit for herself and her family.
The investigation of the case was conducted by United States Secret Service. Assistant United States Attorney Daniel Bubar is prosecuting the case for the United States.
St. Louis County Man Sentenced on Tax ChargesRead the Press Release
St. Louis, MO – RAJU MUKHI was sentenced to three years’ probation, ordered to pay full restitution and agreed to a penalty in the amount of $838,439 for failing to file a report to the IRS on his foreign financial accounts and for filing false tax returns.
United States citizens are required to report income from foreign countries, such as bank accounts, securities and any other financial accounts on their tax returns. If the value is more than $10,000, they are required to file a Report of Foreign Bank and Financial Accounts, Form TD F90-22.1 (FBAR).
According to court documents, Mukhi failed to disclose the existence of Clariden Bank and Goldman, Sachs & Company Bank-Singapore accounts and the income earned in these accounts to his tax preparers for the years 2006 and 2008. Additionally, Mukhi failed to file an FBAR disclosing that he had financial accounts in Singapore and Switzerland for years 2007-2010."Hiding income and assets offshore is not tax planning; it's tax fraud," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "We are continuing our work to crack down on offshore tax evasion."
Mukhi, St. Louis, Missouri, pled guilty in October to one felony count of filing false tax returns and one felony count of failure to file reports of foreign bank and financial accounts. He appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Dianna Collins handled the case for the U.S. Attorney's Office.
Springhill Woman Found with 230 Grams of Methamphetamine and more than $5,000Read the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced that a Webster Parish woman pleaded guilty Thursday to possessing methamphetamine with intent to distribute.
Reiny Ratliff, 21, of Springhill, La., pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of possession with intent to distribute methamphetamine. According to evidence presented at the guilty plea, Springhill Police responded on March 12, 2014 to a complaint that someone was illegally parked in a handicapped spot at a local retail store. While questioning Ratliff, the officer saw drug paraphernalia in the car, arrested her, and impounded the vehicle. Upon search of her purse, 229.7 grams of methamphetamine and $5,347 were found.
Ratliff faces up to 20 years in prison, three years supervised release, a $1 million fine and forfeiture of the money found. A sentencing date of April 29, 2015 was set.
The DEA and Springhill Police Department conducted the investigation. Assistant U.S. Attorney James G. Cowles is prosecuting the case.
South Florida Man Indicted for Identity Theft and Debit Card FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Kency Aime (29, Biscayne Bay) with one count of access device (credit card) fraud and nine counts of identity theft. If convicted, he faces a maximum penalty of 10 years in federal prison for the fraud count, and up to 5 years in prison for each identity theft count.
According to the indictment, Aime possessed 34 stolen MasterCard and Visa debit cards, as well as the Social Security numbers of nine individuals.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by United States Secret Service and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
South Florida Man Indicted for Identity Theft and Debit Card FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Kency Aime (29, Biscayne Bay) with one count of access device (credit card) fraud and nine counts of identity theft. If convicted, he faces a maximum penalty of 10 years in federal prison for the fraud count, and up to 5 years in prison for each identity theft count.
According to the indictment, Aime possessed 34 stolen MasterCard and Visa debit cards, as well as the Social Security numbers of nine individuals.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by United States Secret Service and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Somerset County Man Sentenced to Prison for Possessing Pornographic Videos of ChildrenRead the Press Release
JOHNSTOWN, Pa. - A resident of Windber, Pa., has been sentenced in federal court to five years in prison, 10 years supervised release—the first 18 months of which must be served by conditions of home confinement, required to register as a convicted sex offender, and ordered to pay $5,000 restitution on his conviction of possession of child pornography, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Donald T. Reese, 69.
According to information presented to the court, on April 28, 2011, Reese knowingly possessed videos in individual computer graphic files which were produced using minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Southwest Computer Crime Task Force of the Pennsylvania State Police for the investigation leading to the successful prosecution of Reese.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov\psc.
Sarasota Man Sentenced to more than 20 Years for Drug Related OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Kewarren Lamar Jones (44, Sarasota) to 20 years and 5 months in federal prison for distributing 28 grams or more of crack cocaine and a related violation of his federal supervised release. As part of his sentence, the Court also entered a money judgment in the amount of $7,500, the proceeds of his criminal conduct. Jones pleaded guilty on October 9, 2014.
According to the plea agreement, during the summer of 2013, Jones sold ounce quantities of crack cocaine to a confidential informant on three separate occasions. At the time of these transactions, Jones was on supervised release for a prior federal firearm offense.
This case was investigated by the Drug Enforcement Administration and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Sarasota Man Sentenced to more than 20 Years for Drug Related OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich has sentenced Kewarren Lamar Jones (44, Sarasota) to 20 years and 5 months in federal prison for distributing 28 grams or more of crack cocaine and a related violation of his federal supervised release. As part of his sentence, the Court also entered a money judgment in the amount of $7,500, the proceeds of his criminal conduct. Jones pleaded guilty on October 9, 2014.
According to the plea agreement, during the summer of 2013, Jones sold ounce quantities of crack cocaine to a confidential informant on three separate occasions. At the time of these transactions, Jones was on supervised release for a prior federal firearm offense.
This case was investigated by the Drug Enforcement Administration and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
Sarasota Man Sentenced to 15 Years in Federal Prison for Unlawfully Possessing a FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Steven Phelps (40, Sarasota) to 15 years in federal prison for being a felon in possession of a firearm. He pleaded guilty on October 24, 2014.
According to court documents, On June 27, 2014, detectives from the Sarasota Police Department executed a search warrant at Phelps’s home. During the search, 28 individually wrapped baggies of cocaine, an electronic scale, and a Davis Industries .32 caliber pistol were recovered. At the time of the search, Phelps was a convicted felon, and therefore prohibited from possessing firearms or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco and Firearms, and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Sarasota Man Sentenced to 15 Years in Federal Prison for Unlawfully Possessing a FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Steven Phelps (40, Sarasota) to 15 years in federal prison for being a felon in possession of a firearm. He pleaded guilty on October 24, 2014.
According to court documents, On June 27, 2014, detectives from the Sarasota Police Department executed a search warrant at Phelps’s home. During the search, 28 individually wrapped baggies of cocaine, an electronic scale, and a Davis Industries .32 caliber pistol were recovered. At the time of the search, Phelps was a convicted felon, and therefore prohibited from possessing firearms or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco and Firearms, and Explosives and the Sarasota Police Department. It was prosecuted by Assistant United States Attorney Carlton C. Gammons.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Santa Rosa Attorneys Charged with Stealing from ClientRead the Press Release
SAN FRANCISCO – Robert Anderson was arraigned today and Scott Steever was arraigned yesterday on charges of conspiracy to commit wire fraud and wire fraud, and conspiracy to commit money laundering and money laundering, announced United States Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
A federal grand jury in San Francisco indicted Anderson and Steever on December 18, 2014, each on one count of conspiracy to commit wire fraud, one count of conspiracy to commit money laundering, six counts of wire fraud, and one count of money laundering. According to the Indictment Anderson and Steever, who were both partners at the law firm Lanahan Steever and Anderson LLP (LSA), formerly known as Lanahan & Reilly LLP, in Santa Rosa, Calif., spent money held in a trust account for a client, identified in the Indictment as B.M., and used the money to pay expenses that were not related to B.M.’s representation. According to the Indictment, in November 2009, B.M. gave LSA approximately $300,000 to be held in trust on her behalf. Some of the money was intended to be used for outstanding legal issues and the remaining balance was to be returned to her. Shortly after the check was deposited, Anderson and Steever, and LSA employees acting at the defendants’ direction, began spending B.M.’s funds without authorization on expenses unrelated to the representation of B.M. By April 2010, all of the funds held on behalf of B.M. had been spent. In March 2012, after an attorney acting on behalf of B.M. asked for an accounting of the money remaining in the account for the benefit of B.M, Anderson sent B.M.’s attorney an email in which he falsely represented that, as of February 2012, B.M. had a remaining trust balance of approximately $252,511.55.
Anderson, of Redwood Valley, Calif. voluntarily surrendered and made his initial appearance today in federal court in San Francisco. Steever, of Rohnert Park, Calif. was arrested and made his initial appearance yesterday in federal court in San Francisco. Anderson and Steever were each released on a $100,000 bond. Anderson and Steever are scheduled for an initial appearance before the Honorable Edward M. Chen, U.S. District Court Judge, 2:30 p.m. on February 4, 2015.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. The maximum statutory penalty for conspiracy to commit wire fraud and wire fraud, in violation of 18 U.S.C. § 1349 and 18 U.S.C. § 1343, respectively, is 20 years in prison, a fine of $250,000, and restitution. The maximum statutory penalty for conspiracy to commit money laundering and money laundering, in violation of 18 U.S.C. § 1956(h) and 18 U.S.C. § 1957, respectively, is 10 years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Denise Marie Barton is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Denise Oki and Trina Khadoo. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.
Ridgefield Physician Pleads Guilty to Health Care FraudRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID LESTER JOHNSTON, 46, of Ridgefield, pleaded guilty today in Hartford federal court to committing health care fraud.
According to court documents and statements made in court, JOHNSTON is an osteopathic physician who operates Osteopathic Wellness Center, LLC, in Ridgefield. In pleading guilty, JOHNSTON admitted that he engaged in a scheme to defraud Medicare and several private health insurance companies by submitting claims for osteopathic and physical therapy services that he did not perform, and by misrepresenting the nature of the services that were performed.
JOHNSTON specifically admitted that he submitted claims in connection with services rendered by a massage therapist, but falsely described the services rendered and falsely stated that he himself had rendered the services.
JOHNSTON is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on April 10, 2015, at which time he faces a maximum term of imprisonment of 10 years. As part of the resolution of this case, JOHNSTON has agreed to enter into a civil settlement with the government and will pay $270,528 to settle federal civil claims arising from his conduct.
This matter has been investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Christopher Mattei, Heather Cherry and Richard Molot.
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(203) 821-3722 [email protected]Rapid City Man Indicted on Firearm ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Possession of a Firearm by a Prohibited Person and Possession of a Stolen Firearm.
Patrick Harding, age 57, was indicted on November 19, 2014. He appeared before U.S. Magistrate Judge Veronica Duffy on January 12, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years’ imprisonment and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that in August 2014, at Rapid City, Harding, who is prohibited from possessing firearms, was in possession of a stolen Glock pistol.
The charges are merely accusations and Harding is presumed innocent until and unless proven guilty.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Ben Patterson is prosecuting the case. Harding was detained pending trial. A trial date has not been set.
Project Safe Neighborhoods Grant AnnouncementRead the Press Release
SHREVEPORT/MONROE/ALEXANDRIA/LAKE CHARLES/LAFAYETTE, La. – United States Attorney Stephanie A. Finley and the Project Safe Neighborhoods Task Force announced today that the Department of Justice (DOJ), the Office of Justice Programs (OJP), and the Bureau of Justice Assistance (BJA) is seeking applications for funding of grants under the Violent Gang and Gun Crime Reduction Program, also known as Project Safe Neighborhoods (PSN).
This program furthers the Department of Justice=s mission and violent crime reduction strategy by providing support to state, local and tribal efforts to reduce gun and gang-related violent crime. Contingent upon the availability of funds, grant awards totaling $300,000 are possible in the Western District of Louisiana to fund new and current comprehensive gun crime reduction strategies and gang violence reduction strategies. Grant proposal submissions must be received by the U.S. Attorney’s Office in Lafayette before 5 p.m. on February 6, 2015.
Various types of single or multi‑grantee grant applications are welcome including those that address the following:
- Gang violence and gun violence reduction, deterrence, prevention, community outreach and education;
- Enforcement, adjudication, and supervision programs;
- Prisoner Reentry Programs; or
- Other innovative related projects.
The FY2015 PSN Competitive Grant Announcement and links to other grants available, and information on the PSN Program can be found at the U.S. Attorney’s website at www.justice.gov/usao-wdla and www.justice.gov/usao-wdla/programs/project-safe-neighborhoods or at www.psn.gov and www.bja.gov/programs/psn .
For more information, contact Western District of Louisiana Assistant U.S. Attorney and PSN and Anti-Gang Coordinator Robert W. Gillespie Jr. at (318) 676-3600.
Complete instructions on how to register and submit an application for this and other grants are available at www.Grants.gov. The FY2015 PSN Grant number is BJA-2014-3810. Applicants can also contact the www.Grants.gov Customer Support Hotline for technical assistance with submitting any application by calling (800) 518-4726, (606) 545-5035 and by e-mail to [email protected].
Pennsylvania Physician Pleads Guilty to Tax Charges, Health Care FraudRead the Press Release
JOHNSTOWN, Pa. - A resident of the Dominican Republic, pleaded guilty in federal court to charges of filing false individual and corporate tax returns and health care fraud, United States Attorney David J. Hickton announced today.
Dr. William R. Acosta pleaded guilty to seven counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that Acosta, a physician licensed to practice in Pennsylvania, filed three false individual income tax returns and three false corporate income tax returns for calendar years 2001, 2002, and 2003, whereby he failed to report $561,129 in taxable income, resulting in an underpayment of $181,460 in income tax owed to the United States.
In addition, from Aug. 28, 2002, to Jan. 24, 2003, Acosta submitted false and fraudulent claims to Highmark Blue Cross/Blue Shield for levels of services higher than what he actually provided, and he unjustly received payment at the higher level from Highmark.
Judge Gibson scheduled sentencing for May 14, 2015, at 10 a.m. The law provides for a total sentence of 28 years in prison, a fine of $1.750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Internal Revenue Service/Criminal Investigation and the Department of Health and Human Services/Office of Inspector General conducted the investigation that led to the prosecution of Acosta.
Pennsylvania Federal Court Bars Woman from Preparing Tax Returns for OthersRead the Press Release
A federal court in Philadelphia has permanently barred a woman and her business from preparing tax returns for others and from operating a tax return preparation business, the Justice Department announced today.
The injunction order, which was signed by U.S. District Judge Lawrence F. Stengel, also requires Denise Almanza to close her existing tax preparation business, Denise’s Centro De Servicios P.C.
The United States brought the civil injunction suit in September 2014, alleging that Almanza inappropriately reduced her customers’ income or wrongfully claimed tax credits on their returns, which caused the customers to receive tax refunds or increased refund amounts to which they were not entitled.
Specifically, the suit alleged that Almanza improperly claimed the additional child tax credit on customers’ income tax returns, which allowed her customers to receive, on average, over $2,900 in improper benefits per tax return. Almanza and her business have prepared more than 14,000 federal tax returns since 2010, according to the complaint. In total, the complaint alleged that Almanza’s activities over the last four years have potentially cost the U.S. Treasury millions of dollars in lost tax revenue.
Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.
Peabody Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A Peabody man was indicted yesterday on child pornography charges.
Patrick Lynch, 22, of Peabody, was indicted on receipt and possession of child pornography. The indictment alleges that beginning in May 2013, Lynch began receiving emails containing child pornography. A federal investigation revealed that Lynch was affiliated with the Boy Scouts, including a position at the Philmont Training Center for Boy Scouts of America. Lynch had also been employed at the Greater Beverly YMCA, and had recently begun employment with Beanstalk Adventure Ropes Course in Reading, Mass.
The charge of receipt of child pornography provides for a mandatory minimum term of five years and no greater than 20 years in prison. The charge of possession of child pornography provides for no greater than 20 years in prison. Both statutes provide for a mandatory minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston made the announcement today. Assistance was also provided by the Massachusetts State Police and the Peabody Police Department. The case is prosecuted by Assistant U.S. Attorney Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Partner in Scotts Valley Investment Company Sentenced to over 10 Years in Prison for His Role in Fraud SchemeRead the Press Release
SAN JOSE – Christopher Luck was sentenced yesterday to 130 months in prison, and ordered to pay $33,222,148.82 in restitution for his role in a securities fraud, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
Luck pleaded guilty on July 21, 2014, to one count of conspiracy to commit mail and wire fraud, one count of mail fraud, and one count of securities fraud. According to the plea agreement, Luck admitted that he made false and misleading statements to investors in order to cause them to invest in the GLR Growth Fund, an investment fund managed by his investment company, Geringer, Luck, and Rode LLC. Luck admitted that at the end of April 2009, his partner, John Geringer confessed to Luck that Geringer had been falsifying the Growth Fund’s trading records for several years. Instead of terminating the Growth Fund, or reporting Geringer to the authorities, Luck admitted that he began to recruit investors by making false and misleading statements to them, including that the Fund had a positive historical performance, and that the Fund made diversified equity trades.
Through his guilty plea, Luck acknowledged that these false and misleading statements to investors were necessary in order to cause new investors to invest and existing investors to maintain their investments or invest more money. Luck admitted that if he was truthful with potential investors after Geringer’s confession, new investors would most certainly choose not to invest, and that new investor money was critical to keeping the Growth Fund afloat. Luck also admitted that this new investor money was used to pay Luck’s salary and bonus payments. In total, from May 2009 through the end of the Growth Fund in 2012, Luck defrauded investors out of over $33 million.
Luck, 58, of Scotts Valley, California, was indicted by a federal grand jury on December 20, 2012. He was charged with conspiracy, mail, wire, securities fraud, and money laundering, all related to his fraudulent conduct at Geringer, Luck, and Rode, LLC.
The sentenced was handed down by the Honorable Judge Edward J. Davila, U.S. District Court Judge, following a guilty plea to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349; one count of mail fraud, in violation of Title 18, United States Code, Section 1341; and one count of securities fraud, in violation of Title 15, United States Code, Sections 78j(b) and 78ff, and Title 17, Code of Federal Regulations, Sections 240.10b-5 and 240.10b5-2. Judge Davila also sentenced the defendant to a three year period of supervised release, ordered the defendant to pay restitution in the amount of $33,222,148.82, and forfeit $33,222,148.82 to the United States government. The defendant will begin servicing the sentence on April 9, 2015.
Jeff Schenk is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Nina Williams and Laurie Worthen. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Oakland Bus Driver Pleads Guilty in Tax Fraud SchemeRead the Press Release
OAKLAND – Akysha Rockwell pleaded guilty in federal court today for her role in a false tax refund scheme, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
In pleading guilty, Rockwell admitted that, during late 2011 and early 2012, Rockwell’s boyfriend at the time taught her how to prepare and electronically file fraudulent income tax returns, targeting people at their church and drug-rehabilitation clinics with the promise of an “Obama Stimulus,” a non-existent government program fabricated to attract clients.
As part of their scheme, Rockwell and her former boyfriend prepared tax returns that claimed false income and false occupations, regardless of the information that was provided to them by their clients. Rockwell’s former boyfriend acquired an identification information form (ID-Doc), to obtain the means of identification of actual persons to prepare and electronically file false federal individual income tax returns, claiming fraudulent tax credits and fraudulent tax refunds. Together, Rockwell and her former boyfriend prepared 116 tax returns in 2012, 54 claimed exactly $6,500 in income, a number they chose to maximize the refund amounts. All the tax returns claimed one of the following sources of “Household Employee” income: babysitter, caretaker, cleaning person, domestic worker, housekeeper, maid, and yard-worker. The clients thought they were applying for payments from an Obama stimulus program, they did not know that Rockwell and her former boyfriend were filing false tax returns in their names.
Even though a majority of the clients were unemployed or disabled with no income, Rockwell filed income tax returns reporting false earned income and false refundable educational credits. Rockwell received a portion of the false tax refunds and spent it on personal items such as clothing, hotels, rental cards and illegal drugs.
After ending their relationship, Rockwell continued to file false tax returns from her residence in Oakland. She used the same fake “Obama Stimulus” program to attract victims. She obtained at least $58,131 by filing false and fraudulent tax refund claims.
Rockwell, 39, a bus driver for a private transportation company in Oakland, was indicted by a federal grand jury on Mar. 13, 2014 and charged with conspiracy to file false claims and two counts of false claims. She pleaded guilty to conspiracy to file a false claim and to filing false claims.
The maximum penalty for each count of conspiracy to file false claims, in violation of a Title 18, U.S.C § 286, is 10 years in prison and a fine of $250,000, or twice the intended gain or loss, whichever is greater. The maximum penalty for each count of false claims, in violation of a Title 18, U.S.C § 287, is five years in prison and a fine of $250,000, or twice the intended gain or loss, whichever is greater. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Rockwell’s sentencing hearing is scheduled for May 1, 2015, at 9:30 a.m. before The Honorable Jon Tigar, U.S. District Court Judge, in Oakland.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
No. Smithfield Resident Sentenced to 5 Years in Federal Prison for Possessing, Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Derek D. Felicio, 42, of North Smithfield, R.I., was sentenced today to 60 months in federal prison for possessing more than 90,000 images and 555 videos depicting child pornography and for distributing child pornography, announced United States Attorney Peter F. Neronha; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations (HSI) in New England; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Felicio to serve 10 years of supervised release upon completion of his prison term. Felicio pleaded guilty on October 24, 2014, to one count each of possession of child pornography and distribution of child pornography.
According to court records and information presented to the court, in March 2013, Felicio unknowingly contacted an undercover HSI agent in Salt Lake City, UT, on a website which contains and is used to share images of child pornography. At the time of his guilty plea, Felicio admitted to the court that during an exchange of emails, he sent HSI agents numerous photographs depicting the lascivious display of prepubescent girls.
In October 2013, HSI agents in Rhode Island seized and searched two computers at Felicio’s residence. A forensic examination of the computers by the Rhode Island State Police Internet Crimes Against Children task force resulted in the identification of more than 90,000 images and 555 videos depicting child pornography.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker
Felicio has been detained in federal custody since his arrest by HSI agents on May 1, 2014.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]New Jersey Man Sentenced to Two Years for ExtortionRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Patrick
Curley, 51, of Passaic, New Jersey, was sentenced today in U.S. District Court to two years in prison and one year of supervised release for extortion. He pled guilty on April 7, 2013.According to court documents, in March 2010, Curley applied on-line for a job with
Vescom, a Hampden, Maine-based security firm. On April 21, 2010, Curley met Vescom’s
Senior Vice President for a job interview in New York. In e-mails and a voice message left after the interview, he expressed ongoing interest in the job. On April 27, however, he e-mailed
Vescom’s Senior Vice President and falsely accused her of sexual harassment and discrimination and threatened to sue. In the months that followed, both he and an attorney representing him contacted Vescom employees and staff counsel seeking $130,000 to settle the claims and threatening to sue and take his claims to the media if they could not reach a financial settlement. Curley’s claims of sexual harassment and discrimination were false and were intended to extort money from Vescom.
The case was investigated by the Federal Bureau of Investigation.Nevada Man Sentenced for Possession of Sexual Material Involving a MinorRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on Jan. 16 2015, Johnathan Edward Holiday, 40, Reno, Nevada, was sentenced before U. S. District Judge Daniel L Hovland to serve five years in prison for possession of materials involving the sexual exploitation of minors.
This case came to the attention of law enforcement after an agent with the North Dakota Bureau of Investigations, assigned to the Internet Crimes Against Children Task Force, discovered a computer geographically located in North Dakota that was sharing child pornography in a peer-to-peer (P2P) network. Homeland Security Investigators eventually traced the computer to Holiday where they seized a laptop, two hard drives, and a Kindel Tablet. On about Jan. 20, 2014, Holiday knowingly possessed in excess of 600 images depicting prepubescent minor’s on various media devices including his laptop computer.
Judge Hovland also ordered that Holiday serve five years of supervised release and pay a $100 special assessment to the Crime Victims Fund.
The case was investigated by Homeland Security Investigations and the North Dakota Bureau of Criminal Investigations.
Assistant U. S. Attorney Gary Delorme prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood in conjunction with Internet Crimes Against Children Task Force (ICAC) help Federal, State and Local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations and criminal prosecutions. Project safe childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Multi-Convicted Felon Receives Almost 20 Years in Prison for Possessing A FirearmRead the Press Release
Augusta, GA: Jacky Ray Burley, 51, of Warrenton, Georgia, was sentenced yesterday before United States District Court Judge J. Randal Hall to 235 months in prison for possessing a firearm as a multi-convicted felon. There is no parole in the federal system.
Evidence presented during Burley’s guilty plea and sentencing hearings revealed that on November 25, 2013, Burley used a shotgun to robthe Dollar General store located at 644 Main Street in Thomson, Georgia. Burley fled the store and was later arrested after a high-speed car chase ended at a roadblock in Warren County, Georgia. Before the Dollar General robbery, Burley’s criminal history included three prior burglary convictions. As a result of his lengthy criminal history, Burley qualified as an Armed Career Criminal, which subjected him to a minimum 15-year prison sentence. Judge Hall’s sentence exceeded the mandatory minimum by almost 5 years.
Burley’s case was prosecuted as part of Project Ceasefire, a joint firearms initiative of the U. S. Attorney’s Office, the ATF, and local law enforcement agencies. Project Ceasefire is a cooperative effort between federal and local law enforcement agencies to combat gun crime by targeting felons previously convicted of drug offenses or crimes of violence and who are found to be in possession of firearms, as well as those who commit violent gun offenses.
United States Attorney Tarver said. “Law enforcement’s top priority is the safety of our citizens. We will bring the full force of justice on dangerous criminals who possess firearms. Those dangerous felons who possess firearms will be investigated, prosecuted, and can expect to serve lengthy prison sentences in federal prison.”
“This sentence is another reminder that ATF remains on the frontline of preventing violent crimes along with our law enforcement partners,” said ATF Special Agent in Charge Carl Walker. “We will not allow residents to suffer such criminal behavior, especially that which threatens the safety of innocent civilians and law enforcement officers.”
Burley’s case was investigated by the ATF. Assistant United States Attorney Lamont A. Belk prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Mortgage Broker Sentenced in Two Separate Fraud Schemes Resulting in Losses of over $2 MillionRead the Press Release
Falsified Home Buyers’ Information to Generate Fraudulent Loan Applicationsin Order to Collect Commissions, Origination and Broker’s Fees
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte sentenced Emeka Udeze, age 39, of Bowie, Maryland, today to 37 months in prison followed by five years of supervised release for conspiring to commit wire fraud in connection with two separate mortgage fraud schemes. Judge Messitte also entered an order that Udeze pay restitution and forfeit $2,098,378, the amount of actual losses suffered by the mortgage lenders as the result of the minimum of 20 transactions Udeke brokered in furtherance of the fraud schemes.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service - Washington Field Office; Special Agent in Charge Fran Mace of the Federal Deposit Insurance Corporation, Office of Inspector General; Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development, Office of Inspector General; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Michael Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief Gary Gardner; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Howard County State’s Attorney Dario Broccolino.
According to his plea and court documents, Udeze was a licensed mortgage broker who worked at various companies, including Newgate Mortgage, owned by co-defendant Shola Risikat Balogun, and EWA Mortgage. Udeze also registered a Maryland company called E&T Consulting, Inc., which he claimed was established to provide general services.
Udeze admitted that in both schemes, he submitted fraudulent mortgage loan applications for buyers, inflating the buyer’s income and creating bogus employment information in an effort to qualify these individuals for loans that they otherwise were unqualified to secure. In some cases, no mortgage payments were made and the property went swiftly into default. In other cases, the borrowers attempted to make mortgage payments for a period of time until they could no longer make payments.
In the first scheme, from at least 2006 through at least December 2008, Udeze, Balogun, Daniel Ofei and others contacted individuals who wished to purchase homes. The buyers, who typically had moderate to low incomes, provided the conspirators with accurate income and employment information. Udeze and others then submitted fraudulent loan applications on behalf of the buyers, inflated the buyer=s income and created bogus employment information in an effort to secure the loan. Udeze, Balogun and others collected origination fees, commissions, yield spread premiums and broker=s fees from each loan that closed. In all, Newgate Mortgage was responsible for originating nearly 100 fraudulent transactions, causing millions of dollars of losses to lending institutions.In a separate scheme, from May 2009 to January 2010, Udeze conspired with Bonnie Kreamer, Nieshia Williams and Rhonda Scott to arrange for individuals to buy and sell real estate so they could improperly obtain money from the transactions. The co-conspirators used many fraudulent techniques, including: short sales in which the property would be sold for a higher price than the seller was aware of; sales of properties not owned by the seller; multiple sales of the same property at the same time; the seller and/or buyer were shown different settlement statements and the conspirators used the difference in sales price to enrich themselves; and money that should have been paid to lien holders was instead disbursed to the co-conspirators, including shell companies created by Udeze and others in order to disguise that the money was really for their benefit. This fraud scheme involved at least 25 victims, including lenders, sellers and buyers of real estate, title insurance companies and lien holders, who incurred losses of over $3 million.
Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, age 49, of Riva, Maryland; Shola Risikat Balogun, age 48, of Upper Marlboro; Rhonda Scott, age 53, of Oxon Hill, Maryland; Daniel Ofei, age 40, of Bowie, Maryland; Nieshia Williams, age 35, of Fort Washington, Maryland; Gregory Green, age 50, of Waldorf, Maryland; and Demetrius Peete, age 47, of Manassas, Virginia, each previously pleaded guilty to their roles in the fraud schemes. Kreamer, who was responsible for the daily operations at Sanford Title, was sentenced on to 51 months in prison, and ordered to pay restitution of $2,499,048 to the victims and forfeit $4.8 million. Scott was sentenced to 30 months in prison and ordered to forfeit $2.7 million and pay restitution of $703,000. Balogun, who organized the mortgage fraud scheme involving Newgate Mortgage, was sentenced to 37 months in prison and ordered to pay restitution and forfeit $1,352,378. Ofei, was sentenced to 37 months in prison and ordered to pay restitution of $5,950,000. Williams was sentenced to 27 months in prison and ordered to forfeit $3.1 million and pay restitution of $1,445,593. Peete was sentenced to a year and a day in prison and ordered to pay restitution of $394,908 and forfeit $1.5 million. Green was sentenced to three months in prison and ordered to pay restitution of $404,596.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, FDIC and HUD-OIG for their work in the investigation of the first scheme; and the FBI, DOJ OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation of the second scheme. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the first case, and Assistant United States Attorney Harry Gruber and Special Assistant United States Attorney Colleen McGuinn assigned to this case from the Howard County States Attorney’s Office, who prosecuted the second case.
Milford Man Sentenced for Robbing Bank in Merrimack, New HampshireRead the Press Release
CONCORD, NEW HAMPSHIRE – CONCORD, N.H. – Frank Mione, 49, of Milford, was sentenced in United States District Court for the District of New Hampshire to 151 months in prison for committing an armed bank robbery and brandishing a firearm during a crime of violence, announced United States Attorney John P. Kacavas.
Mione pleaded guilty on September 29, 2014. Mione admitted that on August 21, 2013, he robbed the TD Bank at 300 Daniel Webster Highway in Merrimack, New Hampshire and that he used a shotgun to commit the robbery and pointed the gun at several tellers in the bank. Mione obtained approximately $2,261 during the robbery.
This investigation involved the cooperative efforts of federal and local law enforcement entities, including the Federal Bureau of Investigation, the Merrimack Police Department, and the Milford Police Department. The case was prosecuted by Assistant U.S. Attorney John J. Farley.
Miami-Dade County Resident Sentenced to 81 Months in Prison in Identity Theft Scheme Involving Theft of over 3,000 Stolen IdentitiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Providencia Llanos, a/k/a Providensia Llanos, a/k/a Providencia Allison, 36, of Miami Gardens, was sentenced to 81 months in prison, followed by three years of supervised release, and was ordered to pay $42,828 in restitution.
Llanos previously pled guilty to one count of access device fraud, in violation of Title 18 United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18 United States Code, Section 1028A(a)(1).
According to court documents, on March 18, 2014, IRS-CI and USSS special agents conducted a search warrant at Llanos’ residence where they found numerous prepaid debit cards, multiple computers, and printed lists and notebooks containing the names, date of births, and social security numbers of at least 3,192 individuals. Eighty-six tax returns were filed from the IP address registered to the residence where Llanos lived using the names and social security numbers of individuals listed on the printed lists and notebooks. Numerous taxpayers stated that they did not know Llanos, that they did not authorize Llanos to possess their names, date of births, and social security numbers, and that they did not authorize Llanos to file federal tax returns for the 2013 tax year.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
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 Pleads Guilty to Trafficking Methamphetamine in Eddy CountyRead the Press Release
ALBUQUERQUE – Israel Mireles-Rivera, 33, a Mexican national unlawfully in the United States and residing in Hagerman, N.M., pled guilty this afternoon in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Mireles-Rivera and co-defendant Ediberto Guzman, 61, of Carlsbad, N.M., were arrested in Jan. 2014, on a three-count indictment alleging methamphetamine trafficking and firearms charges. Count 1 of the indictment charged the two men with conspiracy to distribute methamphetamine from Feb. 2013 through Oct. 2013 in Eddy and Chaves Counties, N.M. Counts 2 and 3 respectively charged Mireles-Rivera alone with possession of methamphetamine with intent to distribute and being an alien illegally in possession of a firearm.
According to the indictment, between Feb. 2013 and Oct. 2013, Mireles-Rivera provided methamphetamine to Guzman on multiple occasions, and Guzman sold the methamphetamine to others, including a person who was working as a confidential source for law enforcement officers. It also alleged that on Oct. 17, 2013, Mireles-Rivera had more than 180 grams of methamphetamine hidden in a vehicle outside his residence and a smaller amount of methamphetamine inside his residence.
Guzman pled guilty to Count 1 of the indictment on April 25, 2014, and was sentenced on June 26, 2014, to 48 months in federal prison followed by three years of supervised release.
During this afternoon’s proceedings, Mireles-Rivera pled guilty to a two-count felony information charging him with conspiracy to distribute methamphetamine and possession of methamphetamine with intent to distribute. In entering his guilty plea, Mireles-Rivera admitted that between Feb. 2013 and Oct. 2013, he was involved in a methamphetamine distribution conspiracy. He acknowledged that during this period, he supplied methamphetamine to an individual who sold the drugs to others, including a person who was acting as a confidential source for law enforcement. Mireles-Rivera also admitted that subsequent to his arrest, law enforcement officers seized approximately eight ounces of methamphetamine when they searched his house and vehicle.
At sentencing, Mireles-Rivera faces a mandatory minimum of five years and a maximum of 40 years in federal prison. He will be deported to Mexico after completing his prison sentence. Mireles-Rivera remains in federal custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Las Cruces office of the DEA, the HITDA Region VI Pecos Valley Drug Task Force and the Carlsbad Police Department. This case is being prosecuted by Assistant U.S. Attorneys Renee L. Camacho and Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office.
The HITDA Region VI Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department, Artesia Police Department, New Mexico Probation and Parole, and the 5th Judicial District Attorney’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.
Mexican National Indicted for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that EFREN FLORES-MELOCHOR, age 40, a citizen of Mexico, was charged today in a one-count Indictment with illegal reentry into the United States after having been previously deported.
According to the Indictment, FLORES-MELCHOR was encountered by Immigration & Customs Enforcement agents in the Eastern District of Louisiana on December 10, 2014, after records showed he had been previously deported from the United States to Honduras on April 18, 2013.
If convicted, FLORES-MELCHOR faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U.S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Immigration & Customs Enforcement and the St. Charles Parish Sheriff’s Department in investigating this matter. Assistant U.S. Attorney Rick Veters is in charge of the prosecution.
Medford Felon Sentenced to 77 Months in Prison for Possessing FirearmRead the Press Release
MEDFORD, OR— On Tuesday, January 13, 2015, Senior U.S. District Judge Owen M. Panner sentenced Vincent Leon Johnson, 26, recently of Medford, Oregon, to 77 months in prison after he pled guilty to being a felon in possession of a firearm. Defendant will be on three years of post-prison supervision upon completing his sentence.
On February 16, 2014, Medford police were dispatched to a report of drug dealing in the Taco Bell parking lot. Police arrived and found the suspect automobile occupied by four people; three of them had arrest warrants. Johnson was the front passenger. Officers frisked Johnson and found $3,401 cash, digital scales, and a small amount of marijuana. Officers seized a backpack found at Johnson’s feet and found a loaded Glock .40-caliber pistol, 50 grams of heroin, $260 cash, and photographs of Johnson. Johnson admitted that he intended to deliver the heroin to another person and carried the loaded Glock .40 caliber handgun. He has prior felony convictions for assault with firearm on a person and two separate convictions for felon in possession of a firearm.
Johnson was recently convicted in the Jackson County Circuit Court of racketeering and two counts of conspiracy to distribute heroin for arranging drug deals while incarcerated in the Jackson County Jail. He was sentenced to 87 months in state prison. As part of his plea agreement, his federal sentence will run concurrent with his state prison sentence.
This case was investigated jointly by the Medford Police Department and the Bureau of Alcohol, Tobacco, and Firearms (ATF), and was prosecuted by Assistant U.S. Attorney Douglas W. Fong.
Maryland Man Found Guilty of Felony Charges in Shooting Outside Northwest Washington Night ClubDefendant Fired Nine Shots at Victim, Who Tried to Run AwayRead the Press Release
WASHINGTON – Jonathan Blades, 30, of Suitland, Md., was found guilty by a jury today of assault with intent to kill while armed and other offenses stemming from a shooting outside a night club in Northwest Washington, U.S. Attorney Ronald C. Machen Jr. announced.
The verdict was returned following a trial in the Superior Court of the District of Columbia. In addition to the charge of assault with intent to kill while armed, Blades was found guilty of aggravated assault while armed and three related firearms offenses. The Honorable Michael Ryan scheduled sentencing for March 20, 2015.
According to the government’s evidence, on Sunday, Feb. 2, 2014, at about 3 a.m., Blades and the victim engaged in a physical altercation after leaving a night club at 20th and K Streets NW. After the fight had stopped, Blades went to his car and retrieved a 40-caliber semi-automatic handgun. Then, as the victim ran from Blades, Blades shot nine times. The gunfire hit the victim, sending a bullet through his back and shoulder. The victim fled to a gas station several blocks away, at 22d and M Streets NW, where a citizen offered him first aid. He was hospitalized for his injuries.
Blades was arrested on Feb. 5, 2014.
In announcing the verdict, U.S. Attorney Machen expressed his appreciation to the Metropolitan Police Department, the U.S. Marshals Service, and the Prince George’s County, Md. for their work on the case. He also acknowledged the work of Paralegal Specialist Allison Gregory Daniels, Victim/Witness Advocate Diana Lim, and Litigation TechnologySpecialist Leif Hickling, all of the U.S. Attorney’s Office. Finally, he commended the efforts of Assistant U.S. Attorneys Scott Sroka and Christopher Macchiaroli, who tried the case.
15-012Madison Gallery Owner Sentenced to 57 Months in Prison for Selling Fraudulent ArtworkRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID J. CRESPO, 60, of Guilford, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for selling fraudulent artwork.
According to court documents and statements made in court, CRESPO was an art dealer who operated the Brandon Gallery in Madison. Over the course of several years, CRESPO defrauded customers by falsely representing that artwork he sold were original pieces by Pablo Picasso and original signed lithographs by Marc Chagall. As part of the scheme, CRESPO forged numerous documents in order to provide “authentication” or provenances of the fakes to his victims.
On September 3, 2013, CRESPO pleaded guilty to one count of mail fraud stemming from the sale of an imitation Marc Chagall lithograph.
The investigation revealed that CRESPO obtained reproductions of original Chagall lithographs, but represented to potential customers that they were, in fact, original lithographs that had been produced through an artistic lithographic method, and under the direction and authority of Marc Chagall.
In January 2010, CRESPO met with an undercover FBI agent at Brandon Gallery. During the course of the conversation, which was recorded, CRESPO and the agent discussed a lithograph known as “The Presentation of Chloe,” which CRESPO represented, among other things, was an “original lithograph” that was part of a limited edition collection made from “stone plates” from which multiple impressions were made from “the same plate.” The agent agreed to purchase the purported lithograph for $2,000.
In May 2010, CRESPO shipped the purported lithograph along with a “Certificate of Authenticity,” which valued the piece at $12,750 “for insurance purposes,” stated that piece was “hand signed by Chagall in crayon after the artist personally examined this particular example,” and represented that “[t]his work came from the collection of Richard Riskin, a longtime friend of the artist.”
In fact, CRESPO had not obtained the purported Chagall lithograph from the estate of Richard Riskin, as no such person existed, and CRESPO knew that the piece was not a limited edition original lithograph manufactured under the artist’s direction using stone plates, but was a photo-mechanical production that was removed from a common edition book.
In November 2010, the FBI conducted a search of the Brandon Gallery and found packages of Chagall prints and practiced Chagall signatures.
The investigation revealed that CRESPO defrauded at least 10 victims out of a total of at least $400,000. Judge Burns will issue a restitution order with 90 days.
On April 3, 2012, CRESPO was arrested on a criminal complaint. He has been detained since December 31, 2014, when he was found to have violated the conditions of his release and his bond was revoked.
This matter was investigated by the Federal Bureau of Investigation and the Madison Police Department. The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Liam Brennan.
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(203) 821-3722 [email protected]Luzerne County Woman Pleads Guilty to Conspiracy to Distribute "bath Salts"Read the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 30-year-old Pittston woman pleaded guilty today in Scranton before United States District Court Judge Malachy E. Mannion to participating in a conspiracy to distribute alpha-pvp, commonly known as “bath salts.”
According to United States Attorney Peter Smith, the defendant, Tiffany Pradel, admitted to her involvement in the conspiracy during 2011 through 2013.
Pradel was indicted by a federal grand jury in August 2014, following an investigation by Department of Homeland Security agents, the Pennsylvania State Police, and West Pittston Police.
The maximum sentence for the offense is 20 years in prison and a $1million fine. Judge Mannion ordered a pre-sentence investigation. Sentencing will be scheduled after the completion of the pre-sentence report.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Local Mechanic Charged with Possessing Child PornographyRead the Press Release
LAREDO, Texas – Gamaliel Cortez-Mendoza, 43, an illegal alien residing in Laredo, has been arrested and charged with possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala in San Antonio and Webb County Sheriff Martin Cuellar. Cortez-Mendoza is a Mechanic at a local logistics company.
Cortez-Mendoza was arrested yesterday following an investigation by the Laredo Child Exploitation Task Force led by HSI and the Webb County Sheriff's Office Cyber Crime Unit with assistance from the Laredo Police Department, Texas Department of Public Safety and U.S. Marshals Service.He made his initial appearance this morning, at which time he was temporarily ordered into custody pending a preliminary examination and detention hearing set for Jan. 23, 2015, at 10:00 a.m. before U.S. Magistrate Judge Diana Song Quiroga.
“This arrest illustrates the value of having a task force dedicated to protecting the children of this community,” said Ayala. “The concept for this task force was inspired by the many successes resulting from the strong partnership between HSI and Webb County, a partnership which was initiated at the direction of Sheriff Martin Cuellar.”
“Operation Child Guardian has proven to be a great success,” said Cuellar. “Since its inception in 2009, more than 40 suspected child predators have been taken off the streets. We will continue to aggressively target those individuals who prey on our children."
The criminal complaint alleges Cortez-Mendoza utilized the Internet to download images depicting a minor engaging in sexually explicit conduct. Such images were allegedly downloaded multiple times over the past several months to a laptop computer that was seized from his possession.
If convicted, Cortez-Mendoza faces up to 20 years in federal prison and a possible $250,000 fine. Upon conviction, he will also be required to register as a sex offender.
This case, prosecuted by Assistant U.S. Attorney Alfredo De La Rosa, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Largo Armed Drug Dealer Sentenced to 15 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Antwon Scott (39, Largo) to 15 years in federal prison for being a convicted felon in possession of a firearm and ammunition. The Court also ordered Scott to forfeit the firearm and ammunition involved in the offense. He pleaded guilty on October 31, 2014.
According to court documents, on April 11, 2014, officers from the Largo Police Department conducted a traffic stop of Scott for driving with a suspended license. Inside the car, Scott had a distribution amount of marijuana. During a subsequent search of Scott’s residence, officers found a firearm, ammunition, and narcotics. Scott has an extensive criminal history, including convictions for fleeing and eluding law enforcement, sales of narcotics, and aggravated assault. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Largo Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Largo Armed Drug Dealer Sentenced to 15 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Antwon Scott (39, Largo) to 15 years in federal prison for being a convicted felon in possession of a firearm and ammunition. The Court also ordered Scott to forfeit the firearm and ammunition involved in the offense. He pleaded guilty on October 31, 2014.
According to court documents, on April 11, 2014, officers from the Largo Police Department conducted a traffic stop of Scott for driving with a suspended license. Inside the car, Scott had a distribution amount of marijuana. During a subsequent search of Scott’s residence, officers found a firearm, ammunition, and narcotics. Scott has an extensive criminal history, including convictions for fleeing and eluding law enforcement, sales of narcotics, and aggravated assault. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Largo Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
Lansing Man Sentenced in Federal Mortgage Fraud ProbeRead the Press Release
Richard Hollern Sentenced for Conspiracy to Commit Bank Fraud
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Richard Hollern, 39, of Grand Ledge, Michigan was sentenced for conspiracy to commit bank fraud. Hollern pled guilty before U.S. District Judge Robert Holmes Bell on August 18, 2014.
Hollern admitted that he conspired with others at CDC, a Lansing real estate and investment company, to process multiple fraudulent mortgage transactions involving real estate in the vicinity of Lansing, Michigan. The scheme enabled the perpetrators to use bank funds to enrich themselves as a result of the sham real estate transaction charged, as well as other similar transactions. Others associated with this organization, including Eric Williams, Aaron Teachout, Isaac Modert, Mario Giannandrea, Rick Artibee, Dennis Sare, Nicole Buda have already been sentenced for their roles in the conspiracy. Another conspirator, Craig DeHaven, has pled guilty and is awaiting sentencing.
Judge Bell imposed a prison sentence of 30 months, to be followed by 24 months of supervision following release from prison. Hollern was also ordered to pay restitution of $1,860,377 to the banks defrauded as a result of the scheme.
Hollern’s prosecution is the result of a continuing investigation by the Mortgage Fraud Task Force, comprised of federal investigators from the FBI, U.S. Secret Service, the U. S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies. To date, fifteen individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all of the defendants, and restitution orders exceeding $14,000,000.
U.S. Attorney Miles praised the cooperation between federal, state and local investigators participating in the Mortgage Fraud Task Force. He also stated that the work of the group is not done: “Many of the people prosecuted worked with others who committed, and continue to commit, mortgage fraud. The defendants have told investigators who they are, and what they are doing. Those people who have not yet learned that crime does not pay will learn that lesson very soon.”
Lansing Man Sentenced in Federal Mortgage Fraud ProbeRead the Press Release
Richard Hollern Sentenced for Conspiracy to Commit Bank Fraud
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Richard Hollern, 39, of Grand Ledge, Michigan was sentenced for conspiracy to commit bank fraud. Hollern pled guilty before U.S. District Judge Robert Holmes Bell on August 18, 2014.
Hollern admitted that he conspired with others at CDC, a Lansing real estate and investment company, to process multiple fraudulent mortgage transactions involving real estate in the vicinity of Lansing, Michigan. The scheme enabled the perpetrators to use bank funds to enrich themselves as a result of the sham real estate transaction charged, as well as other similar transactions. Others associated with this organization, including Eric Williams, Aaron Teachout, Isaac Modert, Mario Giannandrea, Rick Artibee, Dennis Sare, Nicole Buda have already been sentenced for their roles in the conspiracy. Another conspirator, Craig DeHaven, has pled guilty and is awaiting sentencing.
Judge Bell imposed a prison sentence of 30 months, to be followed by 24 months of supervision following release from prison. Hollern was also ordered to pay restitution of $1,860,377 to the banks defrauded as a result of the scheme.
Hollern’s prosecution is the result of a continuing investigation by the Mortgage Fraud Task Force, comprised of federal investigators from the FBI, U.S. Secret Service, the U. S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies. To date, fifteen individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all of the defendants, and restitution orders exceeding $14,000,000.
U.S. Attorney Miles praised the cooperation between federal, state and local investigators participating in the Mortgage Fraud Task Force. He also stated that the work of the group is not done: “Many of the people prosecuted worked with others who committed, and continue to commit, mortgage fraud. The defendants have told investigators who they are, and what they are doing. Those people who have not yet learned that crime does not pay will learn that lesson very soon.”
Lane County Man Pleads Guilty in Federal Court to Being a Fellow in Possession of a FirearmRead the Press Release
EUGENE, Ore. – On Tuesday, January 13, 2015, Christopher Shaun Kanatzar, 28, a resident of Springfield, Oregon, appeared before U. S. District Court Chief Judge Ann Aiken and pled guilty to felon in possession of a firearm. Kanatzar admitted possessing a loaded 9 mm caliber pistol and faces a ten-year maximum prison term and three years of post-prison supervision.
After accepting the guilty plea, Chief Judge Aiken scheduled Kanatzar’s sentencing hearing for March 17, 2015.
According to court documents and statements made in court, on October 1, 2012, Springfield police attempted to stop Kanatzar who was driving a stolen car. Kanatzar attempted to elude police and after a violent struggle, was taken into custody. Inside the stolen vehicle, police located a pistol which Kanatzar had used to rob a man.
In 2012, Kanatzar was charged in state court with robbery, assault and driving offenses. His guilty plea and admissions were part of a resolution of his federal and state charges.
Kanatzar was also convicted in 2006 for shooting at a man and a school administration building, first degree burglary and first degree theft.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms, and the Springfield Police Department. Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Lane County Deputy District Attorney Erik Hasselman, prosecuted the case.
Lakeland Shooter Sentenced to more than 5 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell has sentenced Nicholas Quinton Hanson (23, Lakeland) to five years and ten months in federal prison for being a convicted felon in possession of ammunition. He pleaded guilty on October 1, 2014.
According to court documents, on May 10, 2014, law enforcement officers responded to a shooting at a Chevron gas station in Lakeland. Surveillance video from the gas station captured the shooting, and the individuals involved. That night, numerous individuals, including Hanson, arrived at the gas station in multiple vehicles and congregated around the gas pumps. After conversing for a short time, and as the individuals returned to their vehicles, gunfire erupted from a nearby location. The shots were aimed at Hanson and the others. Hanson returned fire from the rear passenger window of his vehicle and fled the scene. Although the firearm Hanson had used was not located, five of his shell casings were recovered from the scene. Hanson has a lengthy criminal history, including convictions for burglary, grand theft, and retaliation against a witness. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Lakeland Shooter Sentenced to more than 5 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Charlene Edwards Honeywell has sentenced Nicholas Quinton Hanson (23, Lakeland) to five years and ten months in federal prison for being a convicted felon in possession of ammunition. He pleaded guilty on October 1, 2014.
According to court documents, on May 10, 2014, law enforcement officers responded to a shooting at a Chevron gas station in Lakeland. Surveillance video from the gas station captured the shooting, and the individuals involved. That night, numerous individuals, including Hanson, arrived at the gas station in multiple vehicles and congregated around the gas pumps. After conversing for a short time, and as the individuals returned to their vehicles, gunfire erupted from a nearby location. The shots were aimed at Hanson and the others. Hanson returned fire from the rear passenger window of his vehicle and fled the scene. Although the firearm Hanson had used was not located, five of his shell casings were recovered from the scene. Hanson has a lengthy criminal history, including convictions for burglary, grand theft, and retaliation against a witness. As a previously convicted felon, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Laguna Pueblo Man Pleads Guilty to Federal Assault ChargeRead the Press Release
Defendant Prosecuted as Part of Federal Initiative to Address the Epidemic Incidence of Violence Against Native Women
ALBUQUERQUE – Dominque Begay, 50, a member of Laguna Pueblo who resides in Old Laguna, N.M., pleaded guilty this morning to an indictment charging him with assault resulting in serious bodily injury. The guilty plea was entered under a plea agreement with the U.S. Attorney’s Office.
Begay was arrested on Aug. 26, 2014, on a criminal complaint charging him with assault resulting in serious bodily injury. According to the complaint, on Aug. 20, 2014, officers of the Laguna Pueblo Tribal Police Department responded to a report of assault in Old Laguna in Cibola County, N.M. The complaint alleged that Begay assaulted the victim, a Laguna Pueblo woman, by punching, kicking and choking her. The officers noted that the victim had bruising and redness on her neck, arms and back. Begay was arrested by the tribal officers that day on local charges and held in tribal custody until his arrest on federal charges.
Begay was indicted on Sept. 9, 2014, and charged with assault resulting in serious bodily injury.
During today’s proceedings, Begay entered a guilty plea to the indictment and admitted assaulting the victim by knocking her to the ground and causing her to hit her head against a wall. Begay also admitted causing the victim extreme physical pain by putting his hands on the victim’s throat and squeezing.
At sentencing Begay faces a statutory maximum penalty of ten years in federal prison. Begay has been in federal custody since his arrest and remains detained pending his sentencing hearing which has yet to be scheduled.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Laguna Pueblo Tribal Police Department. Assistant U.S. Attorney Paul H. Spiers is prosecuting this case.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Kyle Man Charged with Possession of Firearms by A Prohibited PersonRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Possession of Firearms by a Prohibited Person.
Gerald Baker, age 29, was indicted on September 23, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on January 8, 2015, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Baker being in possession of a firearm on June 9, 2014, at Kyle, when he knew he was prohibited from doing so because of a previous domestic violence conviction.
The charge is merely an accusation and Baker is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Office of Justice Services, Oglala Sioux Tribe Department of Public Safety, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Baker was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for March 17, 2015.
Knoxville Hotel Owner Sentenced to Serve 42 Months in Prison for Bank FraudRead the Press Release
GREENEVILLE, Tenn. - Jayesh Dahyabhai Patel, 49, of Knoxville, Tenn., was sentenced on Jan. 15, 2015, by the Honorable Leon Jordan, U.S. District Court Judge, to serve 42 months in federal prison. Patel was also ordered to pay restitution of $2,806,438.20 to First Community Bank and serve five years of supervised release upon his release from prison.
Patel was indicted in May 2014 and pleaded guilty in July 2014 to bank fraud. He admitted engaging in a scheme from approximately January 2009 to August 2011 to defraud First Community Bank of East Tennessee, Kingsport, Tenn., in connection with an application for a loan to his business, QIS Knoxville, LLC, by providing false tax returns to induce First Community Bank to issue the loan for the purchase and renovation of a Knoxville hotel. Patel further schemed to defraud First Community Bank by providing false invoices to induce the bank to disburse loan funds and by providing additional false tax returns in order to increase the amount of the loan and to obtain a six-month interest only payment period. Finally, he fraudulently induced First Community Bank to make a second loan to finance the sale of a motel by Patel to a relative by providing false information as to the down payment on the purchase. As a result of the fraud, First Community Bank suffered losses of $2,806,438.20.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Neil Smith represented the United States.
Justice Department Requests Applicants for Federal Monitor of Newark Police DepartmentRead the Press Release
NEWARK, N.J. – The U.S. Department of Justice is now accepting applications from individuals and organizations interested in serving as the federal monitor of the Newark Police Department (NPD), U.S. Attorney Paul J. Fishman and Acting Assistant Attorney General for Civil Rights Vanita Gupta announced today. The Justice Department reached an agreement in principle with Newark to undertake wide-ranging reforms within the police department, including an independent court-appointed monitor, and to incorporate those reforms into a judicially enforceable consent decree.
A three-year investigation by the Justice Department and the New Jersey U.S. Attorney’s Office revealed a pattern or practice of constitutional violations in areas including stop and arrest practices, use of force, and theft by officers. The agreement and a summary of the Justice Department’s findings were announced in July 2014.Selecting a monitoring team to oversee and implement the consent decree is an integral part of the reform process. The Justice Department invites all interested parties to submit applications to serve as the monitoring team of the NPD consent decree. The monitoring team will assess and guide reforms in a number of areas, including: community engagement and civilian oversight; stops, searches, and arrests; use of force; bias-free policing; theft by officers; intake and investigation of misconduct complaints; and police discipline. The monitoring team is expected to serve for at least five years. Successful candidates will have experience in evaluating organizations, measuring organizational change, and engaging with diverse communities, as well as expertise in law enforcement practices and statistical analysis, and familiarity with federal, New Jersey, and local criminal and civil rights laws. Applications must include the qualifications of each team member, a list of prior experience and references, a scope of work detailing the methods and activities the team would use to implement the consent decree, a list of all potential or perceived conflicts of interest, and a cost proposal.
The deadline for submitting applications is Feb. 13, 2015. The Justice Department, in consultation with the City of Newark, will select the monitoring team from applications received by that date.
The request for applications is available at: Request for Applications . The Department’s findings report and the agreement in principle can be found here: Agreement & Findings . For more information about the Civil Rights Division, please visit the Division’s website, Civil Rights Division .
Federal civil rights complaints specific to New Jersey can be directed to the U.S. Attorney’s Office civil rights complaint hotline at 855-281-3339 or can be submitted by filling out a complaint form at: Civil Rights Enforcement.
THIS IS A REQUEST FOR INFORMATION ONLY. This request is issued solely for information and planning purposes. It does not constitute a Request for Proposal (RFP) or a promise to issue a RFP in the future. This request is not part of, and shall not be governed by, any formal municipal, state, or federal procurement process. This request does not commit the parties to select an individual or firm to serve as the Monitor or a member of the monitoring team. The parties may solicit additional information from applicants to supplement information provided in response to this request. Responders are advised that the parties will not pay for any information or administrative costs incurred in response to this request; all costs associated with responding to this request will be solely at the interested party’s expense. Not responding to this request does not preclude participation in any future request for applications, if any is issued, nor does it eliminate an individual or firm from being considered for the monitor or a member of the monitor’s team.
14-022Javier Carrillo, Aka “Cara Ancha” Arrested for Drug Trafficking and Money LaunderingRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, defendant Javier Carrillo was arrested upon his arrival to the Luis Muñoz Marín International Airport from the Dominican Republic. Carrillo supplied multi-kilogram loads of cocaine to the group of 10 defendants indicted on July 16, 2014, operation Voodoo Sam II, by a federal grand jury in the District of Puerto Rico, charged with distribution of a controlled substance for purpose of unlawful importation, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Drug Enforcement Administration is in charge of the investigation.
Carrillo is facing three charges: distribution of a controlled substance for the purpose of unlawful importation, conspiracy to import a controlled substance, and conspiracy to launder monetary instruments.
The indictment alleges that beginning in 2005, the organization distributed wholesale and retail amounts of cocaine throughout Puerto Rico and continental United States. The defendants would obtain large amounts of cocaine in Saint Martin, Netherlands Antilles, which was then transported to Puerto Rico on board maritime vessels, commercial cargo planes, and private aircraft. They would also transport large sums of U.S. currency via aircraft and motor vessel to Saint Martin for the purchase of large quantities of cocaine and use the blackberry messenger application as well as other means of communication to communicate with each other.According to the indictment, in or about the year 2010, the defendants conspired to transport more than $12,000,000 in United States currency from Puerto Rico to Saint Martin, Netherland Antilles, knowing that the monetary instruments of funds involved in the transportation represented the proceeds of dealing in controlled substances.
In addition to the money judgment of 127 million dollars the defendants are facing, they have to forfeit properties utilized to facilitate the commission of the offense including two airplanes, an Aerostar-601 and a Cessna 340A.
Assistant U.S. Attorney Mariana Bauzà is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison.
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Jacksonville Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Christopher Shawn Warnock (43, Jacksonville) has pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential life term of supervised release. The plea also requires Warnock to forfeit his computer media and register as a sex offender. Warnock has been in federal custody since his arrest on December 17, 2014. A sentencing hearing has not yet been set.
According to court documents, on October 30, 2014, an agent with the Federal Bureau of Investigation (FBI) in Newark, New Jersey began an online undercover investigation to identify individuals who were using the Internet to trade and distribute images and videos depicting child pornography. The agent made online contact with Warnock and was able to download at least 24 videos of child pornography from Warnock’s computer. Further investigation traced the computer to Warnock’s residence in Jacksonville.
On December 17, 2014, law enforcement executed a federal search warrant at Warnock’s residence and seized his computer. Warnock told the agents, among other things, that he searches for child pornography online using certain key terms, and that he enjoys watching others having sex with children. Forensic analyses of Warnock’s computer revealed that it contained at least 13 videos depicting the sexual abuse of very young children. Logs of online conversations, in which Warnock had indicated his desire to exchange videos of child pornography with other Internet users, were also recovered.
This case was investigated by the Federal Bureau of Investigation, Newark and Jacksonville Offices, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Jacksonville Man Pleads Guilty to Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Christopher Shawn Warnock (43, Jacksonville) has pleaded guilty to receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential life term of supervised release. The plea also requires Warnock to forfeit his computer media and register as a sex offender. Warnock has been in federal custody since his arrest on December 17, 2014. A sentencing hearing has not yet been set.
According to court documents, on October 30, 2014, an agent with the Federal Bureau of Investigation (FBI) in Newark, New Jersey began an online undercover investigation to identify individuals who were using the Internet to trade and distribute images and videos depicting child pornography. The agent made online contact with Warnock and was able to download at least 24 videos of child pornography from Warnock’s computer. Further investigation traced the computer to Warnock’s residence in Jacksonville.
On December 17, 2014, law enforcement executed a federal search warrant at Warnock’s residence and seized his computer. Warnock told the agents, among other things, that he searches for child pornography online using certain key terms, and that he enjoys watching others having sex with children. Forensic analyses of Warnock’s computer revealed that it contained at least 13 videos depicting the sexual abuse of very young children. Logs of online conversations, in which Warnock had indicated his desire to exchange videos of child pornography with other Internet users, were also recovered.
This case was investigated by the Federal Bureau of Investigation, Newark and Jacksonville Offices, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
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.