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14 January 2015
Federal Grand Jury Indicts Providence Resident on 26 Counts of Trafficking Heroin and Crack CocaineRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence returned a twenty-six count indictment today charging Robert L. Wilkins, 23, of Providence, with twelve counts of distribution of heroin, twelve counts of distribution of cocaine base (crack cocaine), and one count each of conspiracy to distribute cocaine base and conspiracy to distribute heroin, announced United States Attorney Peter F. Neronha and Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI.
Wilkins was arrested by members of the FBI’s Safe Streets Violent Gang Task Force and Providence Police on January 8, 2014, following a high-speed car chase and brief foot chase in Providence. Wilkins was allegedly a passenger in a vehicle that allegedly rammed a federal agent’s vehicle in an effort to flee law enforcement. The driver of the vehicle is being sought.
According to court documents and information presented to the court, since July 2014, the FBI Safe Streets Task Force has been investigating the alleged drug trafficking activities of Wilkins and his co-conspirators. It is alleged that twelve controlled purchases of heroin and twelve controlled purchases of crack cocaine were made from the defendant while he was under the surveillance of law enforcement.
According to court documents, the twelve alleged controlled purchases of crack cocaine from Wilkins ranged from approximately .6 grams to 1.5 grams and totaled about 11.5 grams. The twelve alleged controlled purchases of heroin from Wilkins ranged from .3 grams to 1.6 grams and totaled approximately 12.2 grams.
The investigation is continuing.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wilkins has been detained in federal custody since his arrest on January 8, 2014. He was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond following an initial appearance in federal court on a criminal complaint charging him with 12 counts of distribution of cocaine and 12 counts of distribution of heroin.
Conspiracy to distribute heroin, conspiracy to distribute cocaine base, distribution of heroin and distribution of cocaine base are each punishable by statutory penalties of up to 20 years imprisonment; $1,000,000 fine; and supervised release up to life with a mandatory minimum term of 3 years.
The case is being prosecuted by Assistant U.S. Attorneys Ly T. Chin and Paul F. Daly, Jr.
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Contact: 401-709-5357
[email protected]Father and Son Pharmacists Sentenced on Drug ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia announced R. Wayne Murphy, age 63, and J. Kevin Murphy, age 36, father and son pharmacists from Boston, Georgia, were today sentenced by the Honorable Hugh Lawson, United States District Judge in Valdosta, Georgia. Wayne Murphy was sentenced to 36 months imprisonment and ordered to pay a $10,000 fine for introducing adulterated and misbranded drugs into interstate commerce. Kevin Murphy was sentenced to serve 18 months in prison for possession with intent to distribute hydrocodone. They also agreed to forfeit $403,496.63 in illegal proceeds.The investigation in this case revealed two criminal schemes had taken place at Boston Pharmacy in Boston, Georgia, where the Murphys were pharmacists. In the first scheme, Wayne Murphy obtained prescription drugs such as Advair, Crestor and Plavix in Costa Rica, smuggled them into the United States, repackaged them in Boston Pharmacy bottles with preexisting labels, and sold them to his customers for a profit.
“As a pharmacist, Wayne Murphy occupied a unique position of trust in his community,” said U.S. Attorney Michael Moore. “Instead of honoring that trust, Wayne Murphy defrauded his customers and put them at risk for simple gain. He will now pay the price for that choice.”
In the second scheme, Kevin Murphy legally purchased large quantities of controlled substances, including hydrocodone and Xanax, from wholesale drug companies and then sold them illegally to drug dealers at a steep profit. From May through November 2009, Kevin Murphy admitted the amount of illegal drugs attributable to him was 57,393 hydrocodone pills and 4,000 Xanax pills.
“Instead of providing drugs to people with prescriptions, Kevin Murphy sold them to a drug dealer for resale on the streets,” said U.S. Attorney Michael Moore. “If you sell drugs illegally in the Middle District of Georgia, wearing a lab coat will not save you from justice.”
In being sentenced to prison, the father and son join two other individuals who previously pled guilty to felonies arising from the criminal conduct at Boston Pharmacy. On June 10, 2014, Arnolfo Capistran pled guilty to possession with intent to distribute Xanax as his role in Kevin Murphy’s scheme to resell controlled substances. Karen Dunlap, another former pharmacist at Boston Pharmacy, pled guilty to misprision of a felony on May 5, 2014.
“Due to the diligence of the U.S. Attorney’s Office, a complicated case involving multiple local, state and federal agencies has been brought to fruition,” said C. Richard Allen, Director of the Georgia Drugs and Narcotics Agency. “These convictions should send a message across both Georgia and Florida that just because you have a pharmacy license, you do not have the right to unlawfully sell prescription drugs of any kind.”
The case was investigated by the Drug Enforcement Administration, the Georgia Bureau of Investigation, the Georgia Drugs and Narcotics Agency, the Thomas County Narcotics and Vice Division, and the U.S. Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorney Peter Leary is handling the prosecution for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-621-2603.
Ellington Man Admits Stealing Firearm, Selling It to Heroin DealerRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JUSTIN ASHLINE, 24, of Ellington, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, in late April or early May 2014, ASHLINE stole a Ruger .357 caliber handgun from his employer’s truck, traveled to Hartford and sold the gun to his heroin dealer in exchange for approximately 20 baggies of heroin and between $70 and $100 in cash. On May 23, 2014, law enforcement officers located and seized the handgun when they executed a search warrant at the Hartford residence of the heroin dealer.
ASHLINE has been detained in federal custody since his arrest on June 20, 2014.
ASHLINE has four prior felony convictions, including one for sale of narcotics and one for first degree larceny. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Underhill scheduled sentencing for April 7, 2015, at which time ASHLINE faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Connecticut State Police and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
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(203) 821-3722 [email protected]East Liverpool Woman Accused of $860,000 Bank FraudRead the Press Release
A federal grand jury returned a one-count indictment charging Mary Jo Schmidbauer, age 67, of East Liverpool, Ohio, with bank fraud, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that from on or about August 14, 2007, through on or about September 9, 2013, Schmidbauer knowingly devised a scheme to obtain money under the custody and control of Home Savings and Loan, East Liverpool, Ohio, a financial institution insured by the FDIC, by means of materially false and fraudulent pretenses and representations.
It was part of the scheme and artifice that Mary Jo Schmidbauer, while employed by Home Savings and Loan, obtained permission from J.M. to manage money that J.M. deposited into accounts maintained by Home Savings and Loan. After retiring from her position, Schmidbauer obtained a power of attorney from J.M. to continue managing the accounts maintained by Home Savings and Loan, according to the indictment.
It was further part of the scheme and artifice that Schmidbauer withdrew cash from J.M.’s accounts for Schmidbauer’s own personal use. It was further part of the scheme and artifice that Schmidbauer transferred money from J.M.’s accounts into Schmidbauer’s accounts. Schmidbauer then withdrew that money for her own personal use, according to the indictment.
On or about August 14, 2007, Schmidbauer executed the scheme and artifice as set forth above, in that she withdrew $3,000 in cash from J.M.’s account for Schmidbauer’s own personal use. Schmidbauer withdrew this money while employed by Home Savings and Loan and without J.M.’s consent.
On or about September 9, 2013, Schmidbauer executed the scheme and artifice as set forth above, in that she withdrew $100,415.81 from J.M.’s accounts and transferred the money into Schmidbauer’s accounts for her own personal use. Schmidbauer transferred this money by misrepresenting the scope of her authority under J.M.’s power of attorney, according to the indictment.
As a result of the scheme and artifice described above, Schmidbauer obtained approximately $860,000 from J.M.’s accounts, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the St. Clair Township Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Disbarred Attorney Pleads Guilty to Bank FraudRead the Press Release
BOSTON – A Marblehead man pleaded guilty today to tax and bank fraud violations, primarily for recording fraudulent federal tax lien releases on properties he owned in Marblehead and Edgartown.
John C. McBride, 65, pleaded guilty before U.S. District Chief Judge Patti B. Saris to endeavoring to obstruct and impede the due administrations of the Internal Revenue laws and bank fraud. McBride, who was indicted in June 2013, is scheduled to be sentenced on April 28, 2015.
In early 2008, McBride, a now-disbarred criminal defense lawyer, recorded six fraudulent federal tax lien releases against his Marblehead home, in order to obtain a $288,000 loan secured by that property and deprive the IRS of its nearly $700,000 secured interest. McBride prepared the releases himself, without the knowledge or authorization of the IRS, and forged the signatures of IRS officials on them. In March 2008, McBride attempted, unsuccessfully, to record two similar fraudulent tax lien releases against a second home he owned in Edgartown, on Martha’s Vineyard. In 2011, McBride attempted to obtain a $387,000 reverse mortgage loan from Bank of America, which was to have been secured by his Edgartown property. In connection with that loan application, McBride falsely told the bank that there were no liens on the Edgartown property and that he was not then in bankruptcy. In fact, there were substantial liens on the property and McBride’s bankruptcy case, which he had filed in 2009, was still ongoing. In furtherance of his effort to obtain the bank loan, McBride prepared and recorded a fraudulent and unauthorized discharge of mortgage which purported to discharge a more than $700,000 existing mortgage on his Edgartown property. Bank of America discovered that the discharge was fraudulent before the loan closed, and no funds were disbursed to McBride.
The charge of bank fraud provides a sentence of no greater than 30 years in prison and three years of supervised release. The charge of endeavoring to obstruct and impede the due administrations of the Internal Revenue laws is three years in prison and one year of supervised release. 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; Robert E. O’Malley, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Office of Investigations, New York Field Office (TIGTA); Vincent B. Lisi, Special Agent Charge of Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Mark J. Balthazard of Ortiz’s Economic Crimes Unit.
Daly City Woman Charged with Embezzling from Her EmployerRead the Press Release
SAN FRANCISCO –Catherine O’Shea was arraigned today on charges of embezzling approximately $240,000 from her employer to pay her personal credit card bills, announced United States Attorney Melinda Haag and Federal Bureau of Investigation Special Agent in Charge David J. Johnson.
A federal grand jury in San Francisco indicted Catherine O’Shea, 42, on January 6, 2015 on five counts of wire fraud, in violation of 18 U.S.C. § 1343. According to the Indictment, shortly after her employer, identified in the Indictment as C.J., gave her on line access to his business bank accounts to pay business-related expenses, O’Shea began using her employer’s business checking account and business line of credit to pay her personal credit card bills. To cover up her use of her employer’s money, O’Shea made false entries in the accounting records of the business, falsely claiming that the money had been used to pay for office rent or office supplies.
O’Shea made her initial appearance in federal court in San Francisco today before the Honorable Jacqueline Scott Corley, U.S. Magistrate Court Judge. She was released on a $50,000 unsecured bond and ordered to return on January 16, 2015, for a further detention hearing before the Honorable Jacqueline Scott Corley. O’Shea is also scheduled to appear on January 20, 2015, for an initial appearance before the Honorable Edward M. Chen, U.S. District Court Judge.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of wire fraud, O’Shea faces a maximum sentence of 20 years imprisonment for each violation of 18 U.S.C. § 1343, plus restitution. 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 Trina Khadoo. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Costa Rican Charged with Facilitating the Illegal Shipping of Pills from India to the U.S.Read the Press Release
PITTSBURGH - A resident of Costa Rica has been indicted by a federal grand jury in Pittsburgh on charges of mail fraud, misbranded drugs, conspiracy to import controlled substances and smuggling, United States Attorney David J. Hickton announced today.
The 14-count indictment, which was returned on Jan. 13, named Daniel Fernando Sanchez, 39, of Costa Rica, as the sole defendant.
According to the indictment, Sanchez facilitated the Internet sale of misbranded drugs through reshippers in Pittsburgh, Pa., and Houston, Texas, who took delivery of Schedule IV nonnarcotics and non-controlled pain relief and erectile dysfunction drugs manufactured in India and, after repackaging, mailed them to thousands of customers throughout the United States. The customers were falsely led to believe that the drugs were “FDA approved,” that the erectile dysfunction drugs were genuine Viagra and Cialis, and that it was legitimate to distribute such drugs without prescriptions.
The law provides for a maximum total sentence of 20 years in prison on each of the mail fraud counts, three years in prison on each of the misbranded drug counts, five years in prison on the importation conspiracy count, and 20 years in prison on the smuggling count; as well as a $250,000 fine on each of the 14 counts. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Food and Drug Administration, Office of Criminal Investigations, the Postal Inspection Service, Homeland Security Investigations, the Pennsylvania State Police and the Internal Revenue Service - Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cleveland Woman Indicted on Tax ChargesRead the Press Release
A federal grand jury returned a 10-count indictment charging Nakesha M. Taylor, age 35, of Cleveland, with making false, fictitious, or fraudulent claims with the Internal Revenue Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Taylor publicly offered her services as a tax preparer using the name “Kesha Tax Service.” In January and February 2010, she carried out a scheme to enrich herself by obtaining portions of fraudulently inflated tax refunds from tax returns Taylor prepared and filed from her home on behalf of individual taxpayers.
The indictment charges that Taylor inflated the refunds without the taxpayers’ knowledge, resulting in false claims totaling approximately $101,405.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Michael L. Collyer, following an investigation by the Internal Revenue Service, Criminal Investigation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cincinnati-Area Man Arrested for Plot to Attack U.S. Government OfficersRead the Press Release
Assistant Attorney General for National Security John P. Carlin and Acting Special Agent in Charge John A. Barrios of the Cincinnati Division of the FBI announced today that the Joint Terrorism Task Force has arrested a Cincinnati-area man for a plot to attack the U.S. Capitol and kill government officials. Acting Special Agent in Charge Barrios noted that the public was not in danger during this investigation.
Christopher Lee Cornell, 20, of Green Township, Ohio, was charged in a criminal complaint with attempting to kill officers and employees of the United States and possession of a firearm in furtherance of a crime of violence.
Cornell was taken into custody today by the FBI Joint Terrorism Task Force (JTTF). The JTTF is made up of officers and agents from the Cincinnati Police Department, Colerain Police Department, Dayton Police Department, Ohio State Highway Patrol, United States Immigrations and Customs Enforcement, United States Secret Service, West Chester Police Department and the Xenia Police Department.
The department would also like to acknowledge the Cincinnati Police Department, Colerain Police Department, Green Township Police Department and the U.S. Capitol Police for the cooperation and assistance they provided during this investigation.
The criminal complaint was filed today before a U.S. District Court Magistrate Judge. The public is reminded that criminal complaints contain only allegations of criminal misconduct and that defendants are presumed to be innocent unless proven guilty in a court of law.
Charleston Doctors and Medical Clinic Settle Allegations of FraudRead the Press Release
Contact Person: Bill Nettles (803) 929-3000
Dr. Baron S. Nason, Robert T. Hamilton and Nason Medical
Settle Allegations of Fraud for $1,021,778.26
1 Submitted claims to Medicare and TRICARE for services that were provided by physician assistants, as though the services were provided by physicians. Both Medicare and TRICARE pay 85% of the physician fee schedules for services provided by mid-level providers like physician assistants; 2 Submitted claims to Medicare, Medicaid and TRICARE for testing that was not medically indicated including laboratory tests and potentially harmful CT scans; 3 Submitted claims for radiological services provided by a radiology technician who did not hold a current South Carolina license; and 4 Submitted claims for Tetanus Immunoglobulin when Tetanus Toxoid was given which is considerably less expensive;
Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina, settled claims of health care fraud with Nason Medical, out of Charleston, South Carolina, and two of its owners, Dr. Baron S. Nason and Robert T. Hamilton. The United States contended that Nason Medical submitted numerous false claims to Medicare, Medicaid and TRICARE. Specifically, the United States contended that Nason Medical:
The investigation began with the filing of whistleblower lawsuits, called qui tams, under the False Claims Act. The suits were filed by former employees of Nason Medical. The False Claims Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement includes repayment of actual damages and penalties.
The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the two relators collectively will receive 18% of the funds of the settlement, or $183,920.08, plus they are entitled to their costs and attorney fees. One whistleblower claimed he was terminated for his actions taken to stop the fraudulent billing. If that is true, he is entitled to recover for his personal damages as well.
Mr. Nettles said, ?Health care fraud is a very high priority in this office. We have shifted our office resources by trebling the number of attorneys dedicated to address civil fraud cases. This case is particularly egregious because it involves allegations of profiting by exposing patients to unnecessary radiation in the CT scans.?
“Being a health care provider in Federal health care programs such as Medicare and Medicaid is a privilege, not a right. When health care providers order medically unnecessary procedures such as CT scans and submit other improper claims just to boost profits, they threaten both the health of their patients and the financial integrity of the Medicare and Medicaid programs,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (OIG). “In an effort to ensure Nason Medical’s egregious billing history is not its future, the company agreed to a rigorous 5-year Corporate Integrity Agreement (CIA) we crafted to hold them accountable.”
Under this CIA, except for X-rays, Nason Medical also agreed to remove all its imaging equipment (including CT scans) and to provide medical services only appropriate for an Urgent Care Center. To that end, Nason Medical may not present or advertise itself out as providing any medical services for emergencies. Nason Medical is required to take down its Emergency signage and to stop advertising for emergency services. And, to ensure its compliance with federal healthcare programs and this CIA, Nason Medical, among other requirements, must engage the services of an independent monitor, chosen by OIG.
This case was investigated by agents from U.S. Health and Human Resources Office of Inspector General, Defense Criminal Investigative Service and the Federal Bureau Investigation.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].Casamero Lake Man Sentenced to Twelve Years for Federal Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Arthur L. Ganadonegro, 24, was sentenced this afternoon to 144 months in federal prison followed by a lifetime of supervised release for his aggravated child sexual abuse conviction. Ganadonegro also will be required to register as a sex offender.
Ganadonegro, an enrolled member of the Navajo Nation who resides in Casamero Lake, N.M., was arrested in March 2014, on a criminal complaint alleging that he sexually abused two Acoma Pueblo children when they were less than 12 years of age. Ganadonegro subsequently was charged in a four-count indictment with two counts of aggravated sexual abuse and two counts of abusive sexual contact. The indictment alleged that Ganadonegro sexually abused one of the victims between Sept. 2013 and Nov. 2013, on the Navajo Indian Reservation in McKinley County, N.M. It further alleged that Ganadonegro sexually abused the other victim between April 2008 and Dec. 2008, in a location within Acoma Pueblo in Cibola County, N.M.
On Oct. 7, 2014, Ganadonegro pled guilty to a felony information charging him with aggravated sexual abuse and admitted that between April 2008 and Dec. 2008, he engaged in a sexual act with a child under the age of 12 years. He also acknowledged committing the crime in Acoma Pueblo.This case was investigated by the Albuquerque office of the FBI, the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Pueblo of Acoma Tribal Police Department.
The case was prosecuted by Assistant U.S. Attorney Novaline D. Wilson as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Beaumont, Texas, Attorney Sentenced to 12 Months in Prison for Tax ViolationRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Beaumont attorney was sentenced to 12 months in prison for failing to file his federal income tax return.
Craig J. Schexnaider, 63, of Beaumont, Texas, was sentenced by U.S. Magistrate Judge Zack Hawthorn for one count of failing to file an income tax return. He was also ordered to pay a $5,000 fine and serve one year of supervised release. He must also pay his tax liability of $98,805.57 to the U.S. Treasury. The court set a surrender date of February 11, 2015. According to evidence presented at the April 14, 2014 guilty plea, Schexnaider, an attorney licensed to practice law in the State of Texas, had gross income in calendar year 2008 of approximately $140,000, an amount in excess of the $3,500 minimum that triggered the requirement to file a federal income tax return. And, even after he requested a six-month extension for the filing of his 2008 federal individual income tax return and the Department of the Treasury approved his request and granted an extension until October 15, 2009, Schexnaider willfully failed to file his 2008 federal individual income return by October 15, 2009 as required by law.
The sentencing resulted from a Bill of Information that was filed in November 2013 charging Schexnaider with four counts of failing to file income tax returns when he had the following in gross income: $73,920 in 2007; $143,797 in 2008; $110,669 in 2009; and $43,740 in 2010. The government dismissed the remaining counts after sentencing.
The IRS conducted the investigation. Assistant U.S. Attorney William J. Flanagan prosecuted this recusal case from the Eastern District of Texas.
Beaumont, Texas, Attorney Sentenced to 12 Months in Prison for Tax ViolationRead the Press Release
Department of Justice
Office of Public AffairsSHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Beaumont attorney was sentenced to 12 months in prison for failing to file his federal income tax return.
Craig J. Schexnaider, 63, of Beaumont, Texas, was sentenced by U.S. Magistrate Judge Zack Hawthorn for one count of failing to file an income tax return. He was also ordered to pay a $5,000 fine and serve one year of supervised release. He must also pay his tax liability of $98,805.57 to the U.S. Treasury. The court set a surrender date of February 11, 2015. According to evidence presented at the April 14, 2014 guilty plea, Schexnaider, an attorney licensed to practice law in the State of Texas, had gross income in calendar year 2008 of approximately $140,000, an amount in excess of the $3,500 minimum that triggered the requirement to file a federal income tax return. And, even after he requested a six-month extension for the filing of his 2008 federal individual income tax return and the Department of the Treasury approved his request and granted an extension until October 15, 2009, Schexnaider willfully failed to file his 2008 federal individual income return by October 15, 2009 as required by law.
The sentencing resulted from a Bill of Information that was filed in November 2013 charging Schexnaider with four counts of failing to file income tax returns when he had the following in gross income: $73,920 in 2007; $143,797 in 2008; $110,669 in 2009; and $43,740 in 2010. The government dismissed the remaining counts after sentencing.
The IRS conducted the investigation. Assistant U.S. Attorney William J. Flanagan prosecuted this recusal case from the Eastern District of Texas.Banker Sentenced to Prison for Making Material False StatementsRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court Senior United States District Judge Malcolm J. Howard sentenced MATTHEW MARKS WESTBROOKS, 34, of Lexington, South Carolina, to serve ten months in federal prison, followed by a three-year term of supervised release. Judge Howard also ordered WESTBROOKS to pay restitution in the amount of $286,816, which was comprised of $70,493 in losses owed to Credit Suisse Securities, $80,543 in losses owed to Novastar Mortgage, and $135,780 in losses owed to M&T Bank.
The Criminal Information to which WESTBROOKS pled guilty charged that during times material to the case, WESTBROOKS was employed as a mortgage originator in the Eastern District of North Carolina. WESTBROOKS was separately, but simultaneously, engaged with others in the business of buying and selling properties for profit. In his work as a mortgage originator, WESTBROOKS received a commission whenever he successfully assisted a borrower to obtain a mortgage loan. WESTBROOKS did not receive a commission if the mortgage loan was not approved by the lender, and if the associated real estate transaction did not close.
The Criminal Information further charged that as a mortgage originator, WESTBROOKS was responsible for, among other things, typing borrower loan qualifications and other information into software used by his employer to electronically transmit loan application information from North Carolina to banks and lenders located in various other states. The Loan Application Software was also used to generate a physical or electronic copy of a Uniform Residential Loan Application, or Form 1003, containing borrower loan application information. Form 1003 required the borrower to identify, among other things, the source of any down-payment funds. Form 1003 contained a warning that “misrepresentation(s) of the information contained in this application may result in . . . criminal penalties, including, but not limited to, fines or imprisonment. . .”
The Criminal Information further alleged that as a mortgage originator, WESTBROOKS was required by his employer on each transaction to communicate with the borrower regarding the borrower’s obligations at closing, including the requirement to bring to the closing cash due from the borrower under the terms of the loan. Specifically, WESTBROOKS was required to obtain a copy of the HUD-1 Settlement Statement (“HUD-1”) from the closing attorney. The HUD-1 showed, among other things, the remaining balance of the “Borrower’s Obligation,” or cash due from the borrower at closing. WESTBROOKS was obligated to review the HUD-1s and confer with the borrower regarding the Borrower’s Obligation, as set forth in the HUD-1.
The banks and lenders did not permit the seller, the mortgage originator, or a third party to the transaction to “front” or pay the Borrower’s Obligation on behalf of the borrower. The borrower was obligated to bring to closing the amounts identified on the HUD-1 in satisfaction of the Borrower’s Obligation. Moreover, the HUD-1 contained a warning that providing false statements on the HUD-1 could result in a prosecution under Title 18, United States Code, Section 1001.
The Criminal Information specifically alleged that on or about February 14, 2007, WESTBROOKS falsified a loan application and HUD-1 Settlement statement which reflected that the borrower supplied down-payment funds when, in fact, the defendant had supplied the funds on behalf of the borrower.
At the sentencing hearing held today, WESTBROOKS’s attorneys argued, among other things, that WESTBROOKS should not receive a sentence of imprisonment because he has already been rehabilitated since the time of the offense. The Government noted that in his capacity as a mortgage originator, WESTBROOKS had made false statements on 13 loans across 9 different lenders, resulting in fraudulent mortgage proceeds exceeding $1.9 Million. The Government argued that prison, rather than probation, was appropriate to punish the defendant and deter others from engaging in similar conduct. Ultimately, the Court ordered the defendant to serve 10 months in prison.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Bank Robbery Defendants SentencedRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that DAVID McARTHUR KING, 24, of New Bern, THOMAS LEE CUTHBERTSON, JR., 24, of Vanceboro, and KHIRY TERREL JONES, 24, of Oriental, were each sentenced resulting from their earlier guilty pleas to bank robbery and firearms charges. The charges stem from the December 2, 2013 robbery of First Citizens Bank in Oriental, and the November 22, 2013 robbery of TD Bank in Easley, South Carolina.
On December 10, 2014, Senior U.S. District Judge Malcolm J. Howard sentenced KING TO 20 years in prison for his plea to two counts of armed bank robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), and a single count of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A), all for his role in both robberies. On January 13, 2015, Judge Howard sentenced JONES to 8 years in prison for armed bank robbery, for his role as the getaway driver in the First Citizens robbery. On January 14, 2015, Judge Howard sentenced CUTHBERTSON to 17 years in prison for armed bank robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), and a single count of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A), all for his role in both robberies. KING, JONES AND CUTHBERTSON were each ordered to be supervised for 5 years following release. KING was ordered to pay restitution in the amount of $61,539.50, which includes $3,000.00 from an additional robbery. JONES was ordered to pay $33,797.00 in restitution. CUTHBERTSON was ordered to pay $58,521.50 in restitution.
Investigation of this case was conducted by the Federal Bureau of Investigation, the New Bern Police Department, the Pamlico County Sheriff’s Office, the Oriental Police Department, and the North Carolina State Bureau of Investigation. Assistant United States Attorney John Bennett is prosecuting the case.
Auction House and Corp. President Plead Guilty to Wildlife Smuggling ConspiracyRead the Press Release
Auction House Agrees to Ban of Wildlife Sales and $1.5 Million Fine After Getting Caught Illegally Selling Endangered Black Rhino Horn, Elephant Ivory and Coral
Elite Estate Buyers Inc., dba Elite Decorative Arts, an auction house located in Boynton Beach, Florida, and the company’s President and owner, Christopher Hayes, pleaded guilty today in U.S. District Court in Miami to an illegal wildlife trafficking and smuggling conspiracy in which rhinoceros horns and objects made from rhino horn, elephant ivory, and coral, that were smuggled from the United States to China.
The guilty plea was announced today by U.S. Attorney Wifredo Ferrer for the Southern District of Florida, Assistant Attorney General John C. Cruden of the Environment and Natural Resources Division of the Department of Justice, and Director Dan Ashe of the U.S. Fish and Wildlife Service (FWS). The prosecution of Elite and Hayes is part of Operation Crash, a continuing effort by the Special Investigations Unit of the FWS Office of Law Enforcement in coordination with the Department of Justice to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
According to records filed in court, Hayes and his company sold six endangered black rhino horns. Two of the horns were sold for $80,500 to a Texas resident involved in smuggling the horns to China. Two more rhino horns were purchased by an undercover FWS special agent. Another undercover agent with the FWS consigned two horns for auction.
As part of today’s plea agreement, Hayes and Elite have admitted to being part of a far reaching felony conspiracy in which the company helped smugglers traffic in endangered and protected species in interstate and foreign commerce and falsified records and shipping documents related to the wildlife purchases in order to avoid the scrutiny of the FWS and U.S. Customs and Border Protection. Elite aided foreign buyers by directing them to third-party shipping stores that were willing to send the wildlife out of the country with false paperwork.
“Not only did Hayes and his company illegally profit from obtaining rhinoceros horns and elephant ivory, but his greed and indifference contributed to the senseless slaughter of these animals,” said U.S. Attorney Wifredo A. Ferrer. “Trafficking in endangered and threatened species is illegal. Together with our law enforcement partners, we will strictly enforce the laws that protect our environment and our wildlife.”
“In pleading guilty this auction house is admitting that it played a key role in the supply chain of rhino horn and elephant ivory to wildlife smugglers and foreign markets. Auction houses and art galleries should be especially mindful of abiding by the laws designed to prevent the extinction of these species rather than devoting their expertise to help smugglers evade the law,” said Assistant Attorney General Cruden. “This prosecution is the result of a sophisticated and long-ranging investigation into every aspect of the illegal wildlife trade and we will hold all law violators fully accountable for their actions.”
“As this guilty plea demonstrates, ivory and rhino horn trafficking is not just a problem for other countries to solve. The ongoing slaughter of rhinos and elephants in Africa is driven by rising consumer demand and United States citizens like Christopher Hayes are intimately involved in illegal trade both here and abroad,” said FWS Director Dan Ashe. “We will continue to work with international law enforcement agencies and the international community to apprehend and bring to justice those whose callous disregard threatens the survival of the world’s wildlife heritage.”
Elite and Hayes also admitted to selling items made from rhinoceros horn, elephant ivory, and coral an antiques dealer in Canadian who they then directed to a local shipper that agreed to mail the items in Canada without required permits. The defendants also admitted to selling raw rhinoceros horns, which they believed were from a black rhinoceros, to a person in Texas.
Hayes, 55, of Wellington, Florida, will be sentenced by Judge Daniel Hurley on date to be determined. The maximum penalty is five years in prison and a maximum fine of $500,000 for Elite and $250,000 for Hayes, or up to twice the gross gain. Elite has agreed to pay a $1.5 million fine and to no longer engage in the receipt, consignment, or sale, of endangered or protected wildlife or items containing endangered or protected wildlife, including items containing rhinoceros horn, elephant ivory and red coral.
The investigation is continuing and is being handled by the FWS Office of Law Enforcement, the U.S. Attorney’s Office for the Southern District of Florida and the Department of Justice’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney Thomas Watts-FitzGerald and Trial Attorney Gary N. Donner of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division.
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.
Auction House and Company’s President Plead Guilty to Wildlife Smuggling ConspiracyRead the Press Release
Elite Estate Buyers Inc., doing business as Elite Decorative Arts, an auction house located in Boynton Beach, Florida, and the company’s president and owner, Christopher Hayes, pleaded guilty today in U.S. District Court in Miami to an illegal wildlife trafficking and smuggling conspiracy in which the auction house sold rhinoceros horns and objects made from rhino horn, elephant ivory and coral that were smuggled from the United States to China.
The guilty plea was announced today by Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division, U.S. Attorney Wifredo Ferrer for the Southern District of Florida and Director Dan Ashe of the U.S. Fish and Wildlife Service (FWS). The prosecution of Elite and Hayes is part of Operation Crash, a continuing effort by the Special Investigations Unit of the FWS’ Office of Law Enforcement in coordination with the Department of Justice to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
According to records filed in court, Hayes and his company sold six endangered black rhino horns. Two of the horns were sold for $80,500 to a Texas resident involved in smuggling the horns to China. Two more rhino horns were purchased by an undercover FWS special agent. Another undercover agent with the FWS consigned two horns for auction.
As part of today’s plea agreement, Hayes and Elite have admitted to being part of a far reaching felony conspiracy in which the company helped smugglers traffic in endangered and protected species in interstate and foreign commerce, and falsified records and shipping documents related to the wildlife purchases in order to avoid the scrutiny of the FWS and U.S. Customs and Border Protection. Elite aided foreign buyers by directing them to third-party shipping stores that were willing to send the wildlife out of the country with false paperwork.
“In pleading guilty this auction house is admitting that it played a key role in the supply chain of rhino horn and elephant ivory to wildlife smugglers and foreign markets,” said Assistant Attorney General Cruden. “Auction houses and art galleries should be especially mindful of abiding by the laws designed to prevent the extinction of these species rather than devoting their expertise to help smugglers evade the law. This prosecution is the result of a sophisticated and long-ranging investigation into every aspect of the illegal wildlife trade and we will hold all law violators fully accountable for their actions.”
“Not only did Hayes and his company illegally profit from obtaining rhinoceros horns and elephant ivory, but his greed and indifference contributed to the senseless slaughter of these animals,” said U.S. Attorney Ferrer. “Trafficking in endangered and threatened species is illegal. Together with our law enforcement partners, we will strictly enforce the laws that protect our environment and our wildlife.”
“As this guilty plea demonstrates, ivory and rhino horn trafficking is not just a problem for other countries to solve,” said Director Ashe. “The ongoing slaughter of rhinos and elephants in Africa is driven by rising consumer demand and United States citizens like Christopher Hayes are intimately involved in illegal trade both here and abroad. We will continue to work with international law enforcement agencies and the international community to apprehend and bring to justice those whose callous disregard threatens the survival of the world’s wildlife heritage.”
Elite and Hayes also admitted to selling items made from rhinoceros horn, elephant ivory and coral to an antiques dealer in Canada, who they then directed to a local shipper that agreed to mail the items in Canada without required permits. The defendants also admitted to selling raw rhinoceros horns, which they believed were from a black rhinoceros, to a person in Texas.
Hayes, 55, of Wellington, Florida, will be sentenced by Judge Daniel T. K. Hurley on a date yet to be determined. The maximum penalty is five years in prison and a maximum fine of $500,000 for Elite and $250,000 for Hayes, or up to twice the gross gain. Elite has agreed to pay a $1.5 million fine and to no longer engage in the receipt, consignment or sale of endangered or protected wildlife, or items containing endangered or protected wildlife, including items containing rhinoceros horn, elephant ivory and red coral.
The investigation is continuing and is being handled by the FWS Office of Law Enforcement, the U.S. Attorney’s Office for the Southern District of Florida and the Environment and Natural Resources Division’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney Thomas Watts-FitzGerald for the Southern District of Florida and Trial Attorney Gary N. Donner of the Environmental Crimes Section.
Attorney General Holder Announces Updates to Justice Department Media GuidelinesRead the Press Release
WASHINGTON –Attorney General Eric Holder announced today expanded revisions to the Justice Department’s policy regarding obtaining information from, or records of, members of the news media.
The updated policy was announced via a memo by Attorney General Holder to all Justice Department employees.
“These revised guidelines strike an appropriate balance between law enforcement’s need to protect the American people, and the news media’s role in ensuring the free flow of information,” Attorney General Holder said. “This updated policy is in part the result of the good-faith dialogue the department has engaged in with news industry representatives over the last several months. These discussions have been very constructive and I am grateful to the members of the media who have worked with us throughout this process.”
Attorney General Holder first ordered a review of the department’s media guidelines in 2013. He then announced initial revisions to those guidelines in February of last year. The latest revisions arose following comments from federal prosecutors and other interested parties, including news media representatives. These meetings with news media representatives included the inaugural convening of the Attorney General’s News Media Dialogue Group in May 2014.
Among the new revisions announced today, the Attorney General has directed that the guidelines eliminate the use of the word “ordinary” when describing newsgathering activities affected by the policy. The revisions also serve to expand high-level review by the Attorney General for the use of certain law enforcement tools, such as subpoenas and applications for warrants, where the information sought from a member of the news media relates to newsgathering activities.
The updates announced today will revise existing department regulations, and the U.S. Attorney’s Manual will be updated to reflect the changes and provide further guidance to prosecutors as well.
A copy of the Attorney General’s memorandum accompanying the revised guidelines is attached.
Arkansas Man Pleads Guilty to Bank Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Crawford, Ark., man pleaded guilty in federal court today to leading a bank fraud conspiracy that used stolen mail and fake identifications to cash nearly $160,000 in fraudulent checks in Webster County, Mo., and elsewhere.
Phillip Daren Shockey, 49, of Crawford, pleaded guilty before U.S. District Judge M. Douglas Harpool to the charge contained in an Aug. 27, 2014, federal indictment. Under the terms of today’s plea agreement, Shockey must pay a money judgment of $159,842, which represents the proceeds of the conspiracy and for which he is jointly and severally liable to pay with co-defendants.
By pleading guilty today, Shockey admitted that he was the leader of the conspiracy to defraud more than a dozen banks from July 31, 2013, to Feb. 28, 2014, by passing counterfeited and forged checks with fake identification documents. At least 12 co-conspirators stole mail, printed counterfeit checks, passed counterfeit checks with fake identification and opened at least five fictitious businesses for the sole purpose of concealing the deposit and subsequent withdrawal of counterfeit checks.
Shockey recruited co-conspirators to steal mail and act as “check runners” who used false identity documents in order to cash fraudulent checks drawn upon the accounts of bank customers. Shockey possessed computers, printers, scanners, cell phones, thumb drives, stolen mail and software in order to produce fraudulent identification and checks for his co-conspirators. Shockey also used false identifications of the banks’ customers and others in order to pass and attempt to pass fraudulent checks.
Shockey and those working at his direction passed and attempted to pass approximately 51 checks for a loss of at least $159,842.
Under federal statutes, Shockey is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1 million. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the U.S. Secret Service Financial Crimes Task Force, the U.S. Postal Service – Criminal Investigations, the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Tulsa, Okla., Police Department, the Jasper County, Mo., Sheriff’s Office, the Webster County, Mo., Sheriff’s Office, the Greene County, Mo., Sheriff’s Office, the Columbia, Mo., Police Department, the Blue Springs, Mo., Police Department, the Monett, Mo., Police Department, the Pierce City, Mo., Police Department, the St. Clair County, Mo., Sheriff’s Department, the Rolla, Mo., Police Department and the Catoosa, Okla., Police Department.
Arizona Resident Charged with Failing to Pay Child Support to RI FamilyRead the Press Release
PROVIDENCE, R.I. – John Crosslin, 51, of San Tan Valley, Arizona, has been charged in federal court in Providence with failing to pay legal child support obligations for his son totaling more than $116,000, announced United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General.
According to an information filed in federal court today by the United States Attorney’s Office, in December 1994, a judge of the Rhode Island Family Court initially ordered the defendant to pay child support of $55 per week for his son. Effective July 2001, the Family Court ordered the support payment increased to approximately $152 per week.
It is alleged in court documents that since being ordered to make child support payments, John Crosslin has made only sporadic payments, if any, under the Family Court’s order. As of January 14, 2014, the defendant’s arrearage on his child support payments is approximately $116,391.66.
According to court documents, while the defendant has resided in other states, including Colorado and Arizona, he has had the ability to make child support payments but has failed to do so.
Failure to meet child support obligations, as defined in 8 U.S.C. '228(f)(3), is punishable by statutory penalties of up to 6 months in federal prison or 5 years probation, a $5,000 fine, 1 year supervised release, and mandatory restitution equal to the unpaid support obligation.
An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Rhode Island Child Support Enforcement Office.
A court date in this matter has not yet been scheduled.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Aliquippa Man Sentenced for Fraud SchemeRead the Press Release
PITTSBURGH - A Beaver County resident has been sentenced in federal court to 33 months imprisonment, and ordered to pay $415,389.32 in restitution on his conviction of mail fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Peter A. Kalemon, 46, of Aliquippa, Pa.
According to information presented to the court, Kalemon defrauded his former employer of $359,389.32 over approximately three years by submitting 126 fraudulent invoices which were paid to Kalemon’s fictitious transportation company via 81 checks mailed to his P.O. Box in Wheeling, West Virginia. In addition, Kalemon admitted negotiating another 176 fraudulent checks drawn against his former employer between March of 2012 and July of 2014, all of which he cashed in Wheeling for another $56,000.
Prior to imposing sentence, Judge Diamond stated that this well-planned crime was a violation of trust; and, although the defendant’s family responsibilities were a mitigating factor, the crime was aggravated because the defendant continued it after being detected.
Assistant United States Attorney Leo M. Dillon prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Kalemon.
Abita Springs Man Sentenced for Running Illegal Wagering Operation and Money LaunderingRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FRANK FRABBIELE, age 79, of Abita Springs, was sentenced today after previously pleading guilty to the transmission of wagering information and money laundering.
U.S. District Judge Helen G. Berrigan sentenced FRABBIELE to 8 months incarceration, forfeiture in the amount of $209,203.87, and a $200 special assessment.
According to court documents, beginning not later than January 2008 and continuing until April 9, 2014, FRABBIELE operated a gambling operation in which he took bets and wagers on football, basketball, and baseball games. In the course of conducting his gambling operation, FRABBIELE used a “pay-per-head” betting website based in Costa Rica to track, record, and register bets and clients, to which FRABBIELE paid a per-client fee. FRABBIELE’S relationship with the website caused information to be transmitted by wire from Abita Springs to the country of Costa Rica for the purposes of assisting in placing bets on football, baseball, and basketball. FRABBIELE also committed money laundering by depositing $20,000 cash, which was proceeds of the gambling operation, into a bank account on November 15, 2012.
U.S. Attorney Polite praised the work of the Internal Revenue Service-Criminal Investigation Division and the Federal Bureau of Investigation for investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Adams County Correctional Facility Inmate Pleads Guilty to Second Degree MurderRead the Press Release
Jackson, Miss –Ricardo Gonzalez-Porras, a federal inmate from Mexico, pled guilty today, before U.S. Senior District Judge David C. Bramlette, III, to second degree murder, U.S. Attorney Gregory K. Davis, announced.
The offense occurred on May 20, 2012 at the Adams County Correctional Center. During the riot, several correctional officers were assaulted and one Correctional Officer (CO) died as a result of injuries he received during these assaults. Other COs were taken captive and held hostage for several hours by participants in the riot. Total damage to ACCC was estimated to be $1,305,142.00.
U.S. Senior District Judge David C. Bramlette, III will sentence Gonzalez-Porras on April 7, 2015. The defendant faces a maximum sentence of life in prison and $250,000 fine.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Adams County Sheriff’s Office. Assistant U.S. Attorneys Pat Lemon and Jerry Rushing are prosecuting the case.
13 January 2015
Zephyrhills Brothers Sentenced to Prison for Firearms OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Dannie Carl Rayford, Jr. (32) to 15 years in federal prison, and his brother, Jermain Lavan Harrison (30), to 12 years and 7 months in federal prison for possessing firearms and ammunition. Both men were previously convicted of multiple felony offenses, including armed burglaries and drug violations.
Rayford and Harrison pleaded guilty on October 7, 2014.
According to court documents, on January 28, 2014, an undercover detective with the Pasco County Sheriff’s Office purchased an SKS assault rifle and narcotics from Harrison at the brothers’ residence. During the execution of a search warrant several days later, law enforcement officers found Harrison in possession of a loaded semi-automatic pistol. Officers also recovered four additional firearms, including two shotguns, as well as ammunition and an assortment of narcotics in Rayford’s bedroom. Both brothers subsequently admitted to dealing in narcotics and firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pasco County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.
It 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 a part of ATF’s Frontline Strategy to reduce violent crime in our communities.
Worcester County Man Sentenced to 16 Years in Prison for Producing Pornography Involving Two Girls Ages 10 and 12Read the Press Release
Also Possessed Over 8,000 Images and Videos of Child Pornography
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Laiton Blake Witkowski, age 42, of Stockton, Maryland, today to 16 years in prison, followed by lifetime supervised release, for producing and possessing child pornography. Judge Hollander also ordered that upon his release from prison Witkowski must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Worcester County Sheriff Reggie T. Mason, Sr.; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Worcester County State’s Attorney Beau Oglesby.
According to his plea agreement, on October 8, 2013, Witkowski used a file sharing network which enabled a law enforcement officer to download from Witkowski’s computer. After further investigation, a search warrant was executed at his residence on February 6, 2014. Computers, hard drives, other electronic devices and approximately 455 CDs and DVDs were seized, all containing, or were used to produce and store, child pornography. A computer, eMachine and electronic notebook alone contained 8,000 images and 100 videos of child pornography. The CDs and DVDs also contained thousands of images and videos of child pornography, including images and videos involving prepubescent minors, and depicting sadism, masochism and other violence.
Further analysis revealed that Witkowski had produced images and videos of child pornography of two girls in August to September of 2009. The girls were approximately 10 and 12 years old at the time. In some images one victim appears to be sleeping, and in other images, the other victim is using the bathroom, or sitting at a computer with Witkowski standing behind her in sexually explicit poses.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Ocean City, Worcester County Sheriff’s Office, Maryland State Police Internet Crimes Against Children Task Force (ICAC) and the Worcester County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who is prosecuting the case.
Woman Charged for Scamming $2 Million Life Insurance Payout Based on Fake DeathRead the Press Release
United States Attorney Andrew M. Luger today announced a complaint charging IRINA VOROTINOV, 48, with defrauding Mutual of Omaha Insurance Company for more than $2 million in life insurance proceeds by falsely claiming that her former husband died. Her son, ALKON VOROTINOV, 25, is charged with actively concealing the fraudulent scheme. IRINA was charged by criminal complaint with mail fraud, and ALKON was charged with having knowledge of the actual commission of a felony and concealing the crime. Both defendants appeared today before Magistrate Judge Hildy Bowbeer in U.S. District Court in St. Paul, Minnesota.
Assistant United States Attorney David J. MacLaughlin, who is prosecuting the case, said: “Fraud against insurance companies drives up the premiums paid by legitimate insureds. Those who cheat insurance companies should expect to be investigated, prosecuted, and held accountable for the economic harm inflicted on those who deal honestly with the insurance industry.”
According to the criminal complaint and documents filed in court, on April 22, 2010, Igor Vorotinov purchased a life insurance policy on his own life from Mutual of Omaha, and listed IRINA VOROTINOV and ALKON VOROTINOV as the beneficiaries. On October 1, 2011, police in Moldova received a phone call reporting a dead body at the entrance of the Cojusna village in central Moldova. Documents recovered from the body, including a passport, hotel cards, and contact phone numbers, identified the man as Igor Vorotinov.
According to the criminal complaint and documents filed in court, IRINA VOROTINOV traveled to Moldova to identify the body. Along with Igor’s cousin and a representative from the U.S. Embassy, IRINA went to the morgue where she identified the body as Igor. At IRINA’S request, the body was cremated on October 20, 2011, in Odessa, Ukraine. IRINA returned to Minnesota on October 29, 2011, and filed a death claim with Mutual of Omaha on November 7, 2011. Mutual of Omaha paid IRINA $2,048,414.09 in the form of a check sent on March 23, 2012, by U.S. mail to IRINA’S home in Maple Grove, Minnesota.
According to the criminal complaint and documents filed in court, IRINA and ALKON VOROTINOV opened an account at a local branch of U.S. Bank and deposited the check, which they both knew to be the life insurance policy proceeds resulting from the death of Igor Vorotinov. Between March 29, 2012 and January 2015, IRINA and ALKON together transferred more than $1.5 million of the life insurance proceeds to accounts located in Switzerland and Moldova.
According to the criminal complaint and documents filed in court, on November 27, 2013, ALKON was stopped by Customs and Border Protection (CBP) in Detroit, Michigan upon returning from a trip to Moldova. A computer seized by CBP agents contained digital photographs of Igor Vorotinov taken on April 19, 2013 and on May 12, 2013, in which Igor is alive.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division.
Assistant U.S. Attorney David J. MacLaughlin is prosecuting the case.
Defendant Information: IRINA VOROTINOV, 50
Plymouth, Minn.
Charge: • Mail Fraud, 1 count
ALKON VOROTINOV, 25
Plymouth, Minn.
Charge: • Misprision of a Felony, 1 countVorotinov Complaint
The charges are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Wisconsin Man Charged with Polo Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Wisconsin man was charged in federal court today with robbing a Polo, Mo., bank.
Oran Woodfin, 30, of Wisconsin, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo. Woodfin remains in federal custody pending a detention hearing.
Today’s federal criminal complaint alleges that Woodfin stole $7,867 from Bank Northwest, 305 Main St., Polo, on Friday, Jan. 9, 2015.
According to an affidavit filed in support of the criminal complaint, Woodfin entered the bank, approached a bank teller and ordered her, “Give me your money.” He allegedly kept his left hand inside his jacket as though he had a weapon. The teller pleaded with him, “Don’t shoot me,” and placed the cash from her teller drawer on the counter. Woodfin allegedly picked up the money and walked out of the bank.
Bank surveillance photos indicated the robber was driving a red Dodge extended cab pickup truck with a black canvas tonto cover in the bed of the truck. A witness to the robbery observed the truck had a broken driver’s side taillight cover although the bulb was still functioning. Photographs of the robber and the pickup truck were disseminated to the media.
On the same day, the affidavit says, Woodfin checked into the Super 8 Motel in Richmond, Mo. Employees at the motel saw the surveillance photos on a television newscast, thought that Woodfin and his vehicle matched the descriptions from the bank robbery and the photos, and notified the police department.
Richmond police officers arrested Woodfin without incident outside his motel room. Officers executed a search warrant at the motel room and seized $7,145, a new computer, clothes and a container of alcohol. The pickup truck had been reported as stolen out of Clark County, Wisconsin. Woodfin had a warrant for his arrest out of Wisconsin for a probation and parole violation.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Brent Venneman and D. Michael Green. It was investigated by the Caldwell County, Mo., Sheriff’s Department, the Polo, Mo., Police Department, the Richmond, Mo., Police Department, the Ray County, Mo., Sheriff’s Department, the Missouri State Highway Patrol and the FBI.
West Seneca Nurse Practioner Pleads Guilty to Tax EvasionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Scott Leuthe, 43, of West Seneca, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to tax evasion. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney MaryEllen Kresse, who is handling the case, said that between 2008 and 2011, Leuthe worked as a nurse a nurse practitioner for two diagnostic imaging businesses in the Western New York area. The defendant was paid as an independent contractor by both businesses but failed to report any of the income he received from one of the companies while claiming all the expenses he incurred in the performance of his duties there. Leuthe’s unreported income during this four-year period was in excess of $400,000. As a result, the defendant failed to pay approximately $134,000 in income taxes.
The plea is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction Special Agent-in-Charge Shantelle P. Kitchen.
Sentencing is scheduled for April 20, 2015 at 1:00 p.m. before Judge Arcara.
Utah Man Pleads Guilty in Chinese Magnesium SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716)843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul Jr. announced today that Eldon Bott, 66, of Bringham City, UT, pleaded guilty conspiracy to commit money laundering before Chief U.S. District Judge William M. Skretny. The charge carries a maximum penalty of 10 years in prison and a $250,000.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that the defendant and Gregory Magness arranged to become a source of supply for magnesium used in the production of countermeasure flares. Bott thereafter entered into an agreement with ESM Group, Inc., whereby he was compensated based on the amount of magnesium ESM sold for the production of countermeasure flares.
Between December 2003 and continuing through October 2006, the defendant sold magnesium powder used in the production of countermeasure flares for the United States Department of Defense. During this time period, the Department of Defense had a restriction that the magnesium used to produce countermeasure flares for the Department of Defense could not be from a foreign source. Aware of this restriction, the defendant knew that the magnesium blend that had been and continued to be sold for use in the production of countermeasure flares for the DoD contained atomized magnesium from China. Bott prepared certificates, relied on by the DoD, that misrepresented the supplied magnesium.
“The defendants in this case stand convicted of violating laws which protect American soldiers serving in times of war, and American businesses operating in times of peace,” said U.S. Attorney Hochul. “Particularly where the defense industry is concerned, this Office will not allow anyone to put personal profit ahead of public duty and military necessity.”
“These guilty pleas bring this nearly decade-long probe closer to full resolution,” said James Spero, HSI Special Agent in Charge. “HSI special agents, through an extensive investigation, proved that the individuals perpetuating this scheme essentially engaged in a reckless pattern of shortcut taking that put American servicemembers’ lives at risk. Our action in this case prevented untold harm.”
"Today's guilty plea demonstrates the continued commitment of the Defense Criminal Investigative Service (DCIS) and our partner agencies to pro-actively identify those intent on providing substandard, substituted products to the U.S. military in exchange for unwarranted exorbitant profits," said Craig W. Rupert, Special Agent in Charge, DCIS Northeast Field Office, the investigative arm of the Department of Defense (DoD), Office of the Inspector General. "Such schemes, perpetrated by dishonest contractors and individuals, place the American Warfighter in danger and erodes the confidence of the American taxpaying public."
IRS-Criminal Investigation Acting Special Agent in Charge Thomas E. Bishop said: “IRS Criminal Investigation was pleased to lend its expertise in conducting financial investigations to this diverse team of investigators. Through the cooperation among several law enforcement agencies, a complex scheme to defraud the U.S. government and potentially harm our nation’s security has been unraveled.”
In April 2010, Gregory Magness, Justin Magness, William Nehill, Charles Wright, and Eldon Bott were charged with participating in a conspiracy to import Chinese magnesium into the United States. All defendants now stand convicted.
The plea is the culmination of an investigation on the part of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge, and the Department of Defense Criminal Investigative Service, under the direction of Edward T. Bradley, Special Agent in Charge, Northeast Field Office.
Eldon Bott is scheduled to be sentenced on May 27, 2015 at 2:00 p.m. by Judge Skretny.
United States Reaches Settlement Regarding Cleanup of Superfund Site in Warren County, New JerseyRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a proposed settlement with Pechiney Plastic Packaging Inc. (Pechiney), Albéa Americas Inc., Bristol-Myers Squibb Company, Citigroup Inc., and Rexam Beverage Can Company regarding the cleanup of the Pohatcong Valley Groundwater Contamination Superfund Site in Washington Borough, Washington Township, Franklin Township and Greenwich Township in Warren County, New Jersey. The Pohatcong site is contaminated with trichloroethylene (TCE) and perchloroethylene (PCE).
Under the proposed settlement, Pechiney will have primary responsibility for cleaning up contaminated soil and groundwater at the site, connecting some residents to public water to avoid contaminated groundwater, and operating systems to capture vapors that are getting into a manufacturing facility. As a precaution, Pechiney is continuing to monitor for vapor intrusion into homes at the site. In addition, EPA will receive approximately $29.5 million for certain past costs. Pechiney will also perform current and future cleanup work estimated to cost $62.5 million and will pay EPA’s future oversight costs.
As part of the settlement, EPA will recover civil penalties from Pechiney to resolve allegations that Pechiney violated a previous EPA order by failing to make satisfactory progress on a portion of the cleanup at the site. Pechiney will pay a cash penalty of $282,000. Pechiney will also restore and preserve approximately 60 acres of land, valued at $1.1 million, in Warren County, through a supplemental environmental project. This land will be converted to native grassland and will become part of the Morris Canal Greenway. The land will be managed by Warren County through its existing relationship with the New Jersey Youth Corps of Phillipsburg, a “second chance” program for young adults that provides opportunities to earn a GED while providing a valuable service to the community.
“This agreement will address a legacy of contaminated groundwater and soil in Warren County that exposed this community to dangerous health risks,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The settlement will help ensure residents have access to clean drinking water, require Pechiney to restore and preserve valuable native grasslands and pay for millions in past cleanup costs.”
“The settlement advances our cleanup and will help protect drinking water as well as safeguard people’s health,” said Regional Administrator Judith A. Enck for EPA. “The remaining cleanup work at the Pohatcong Valley site will proceed and an area of open space that can be enjoyed by members of the public will be restored and preserved.”
EPA added the Pohatcong site to the Superfund list in 1989 because of elevated levels of volatile organic contaminants, including TCE and PCE, in the groundwater. These contaminants were detected in public supply wells, which are now treated to meet drinking water standards before the water is distributed. The site includes a contaminated groundwater plume that is approximately 10 miles long and approximately 1.5 miles wide; nearly 9,800 acres.
Because of the size and complexity of the site, EPA divided the site into three parts. Today’s settlement covers work in all three portions of the site.
The first part is a large area of groundwater contamination located in Washington Borough. Residents of this area do not drink the groundwater because they receive drinking water from a public water supply that meets drinking water standards. For this part of the site, in 2006, EPA finalized a plan to pump out the contaminated groundwater and treat it using a technology that will strip out the pollutants by blowing air through the contaminated water to separate out the chemicals. The resulting clean water will be pumped back into the ground. An engineering design is underway to carry out this remedy. EPA is also performing a pump and treat remedy for a portion of the groundwater that is primarily contaminated with PCE. Some of the proceeds recovered through the settlement will fund this part of the site cleanup.
The second area of the site includes contaminated ground water in Franklin and Greenwich Townships. There is no public water supply currently available in most of this area and drinking water wells that are impacted by contamination have received individual treatment systems to provide safe drinking water. For this area, EPA is requiring the construction of water lines to provide potable water. The engineering design for this part of the project in ongoing.
The third part of the site is the contaminated soil and sediment in and around the former American National Can facility in Washington Township. EPA has determined that the primary source of TCE contamination in this area is the former American National Can facility, which was owned and operated by Pechiney in the 1990s and is currently owned and operated by Albéa Americas Inc. EPA is continuing to investigate this contamination. Pechiney has agreed to perform the cleanup on Albéa’s property, and the parties have reserved the issue of who will be responsible for remaining cleanup activities in this area.
In 2013, EPA’s indoor air sampling of the Albéa Americas facility showed unacceptable levels of TCE. EPA worked with Albéa to take actions to protect workers from exposure to harmful gases by reducing the levels of toxic contaminants in the air in the facility to safe levels. These steps included building a system that removes harmful chemicals from soil by extracting them in vapor form with a vacuum and then filtering the vapors through carbon filters to remove contaminants. EPA will be reimbursed for this work through the settlement.
The Superfund program operates on the principle that polluters should pay for the cleanups, rather than passing the costs to taxpayers. EPA searches for parties legally responsible for the contamination at sites, and it seeks to hold those parties accountable for the costs of investigations and cleanups. Under today’s settlement, the parties responsible for the site are paying for or performing the cleanup work.
The proposed settlement will be subject to a 30-day public comment period upon the publication of a notice in the Federal Register.
Once it is published, a copy of the Federal Register notice with instructions about how to comment can be found on the Justice Department’s website.
The settlement requires approval by the U.S. District Court before becoming final.
For more information on the Pohatcong Valley Groundwater Contamination Superfund site, go to EPA’s website.
Twin Falls Woman Pleads Guilty to Controlled Substance DeliveryRead the Press Release
BOISE – Krista Federer, 46, of Twin Falls, Idaho, pleaded guilty today to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. The controlled substances were prescription medications diverted from the pharmacy where Federer worked, said Olson. Sentencing is set for March 26, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
According to the plea agreement, Federer worked as a pharmacy technician in a pharmacy in Twin Falls, Idaho. She stole and sold bottles of controlled substance prescriptions from the pharmacy stock to another individual without a prescription and outside the normal course of standard pharmacy practice. Generally, Federer arranged for the sales by text message and then put pill bottles in her car glove box in the pharmacy parking lot, where another individual retrieved the controlled substances and left payments. Specifically, on October 6, 2014, Federer illegally sold two bottles, each containing 100 pills of 20 mg oxycodone, and two bottles, each containing 100 pills of Dilaudid 4 mg (hydromorphone) for a total of $1,200. On October 14, 2014, Federer committed a similar diversion of controlled substances from her employer pharmacy by placing in her glove box three bottles, each containing 100 pills of oxycodone 30 mg, in exchange for $1,500. All of these are Schedule II controlled substances.
The case was initiated and investigated by the Twin Falls Police Department, and the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Taos Pueblo Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Phillip Martinez, Jr., 59, a member and resident of Taos Pueblo, was sentenced today to 27 months in federal prison for his assault conviction. Martinez will be on supervised release for three years after completing his prison sentence.
Martinez was arrested in Oct. 2013, on an indictment charging him with assault with a dangerous weapon. According to the indictment, Martinez assaulted another Taos Pueblo man with a stick in the Pueblo of Taos on April 29, 2013.On June 9, 2014, Martinez pled guilty to a felony information charging him with assault resulting in serious bodily injury. In entering his guilty plea, Martinez acknowledged that the victim suffered serious bodily injury as a result of the assault.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.Shiprock Man Sentenced to Federal Prison for Robbing Farmington Bank Branch in February 2014Read the Press Release
ALBUQUERQUE – Ryan Lowe, 20, of Shiprock, N.M., was sentenced today to 30 months in federal prison for his bank robbery conviction. Lowe will be on supervised release for three years after completing his prison sentence. Lowe also was ordered to pay restitution to the victim of his crime.
Lowe was arrested on June 4, 2014, on a criminal complaint alleging that he robbed the Citizens Bank branch located at 500 West Broadway in Farmington, N.M., on Feb. 13. 2014. Lowe subsequently was charged with bank robbery in an indictment filed on June 11, 2014.
According to court filings, Lowe robbed the bank on Feb. 13, 2014, by presenting a demand note to a bank teller and taking cash from the teller. Between Feb. 14, 2014 and April 16, 2014, the FBI interviewed a series of witnesses who provided evidence establishing that Lowe was the person who robbed the bank.
Lowe entered a guilty plea to the indictment on Sept. 12, 2014. The guilty plea was entered without the benefit of a plea agreement.
This case was investigated by the Farmington office of the FBI and was prosecuted by Assistant U.S. Attorney Norman Cairns.
Pinetop Man Sentenced to 10 Years for AssaultRead the Press Release
Public Affairs
COSME LOPEZ
Telephone: 602.514.7694
Mobile: 602.686-8614
[email protected]
WWW.JUSTICE.GOV/USAO/AZPINETOP MAN SENTENCED TO 10 YEARS FOR ASSAULT
PHOENIX – On Jan. 12, 2015, Lloyd Tito Burnette, Jr., 33, of Pinetop, Ariz., was sentenced by U.S. District Judge Paul G. Rosenblatt to 10 years’ imprisonment. Burnette pleaded guilty on Oct. 6, 2014, to assault resulting in serious bodily injury.
Burnette, a member of the White Mountain Apache Tribe, took his victim to a remote area of the Fort Apache Indian Reservation and assaulted her. As a result, the victim sustained serious bodily injuries.
The investigation was handled by the Bureau of Indian Affairs and the Federal Bureau of Investigation. The prosecution was handled by Dimitra H. Sampson and Rachel Stoddard.
CASE NUMBER: CR-13-8109-PCT-PGR
RELEASE NUMBER: 2015-005_Burnette# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Omaha Man Sentenced for Filing False Federal Income Tax ReturnsRead the Press Release
Dewayne K. Long, 53, of Omaha, Nebraska, was sentenced for conspiracy to defraud the United States by filing false federal income tax returns for income tax refunds. The Honorable Joseph Bataillon sentenced Long to one year and one day in prison, three years of supervised release and restitution in the amount of $440,924.00.
Beginning around December 1, 2008, through March 2010, Dewayne K. Long, and another individual conspired to defraud the Internal Revenue Service by filing false federal income tax returns which contained fraudulent claims for income tax refunds. These claims were based upon false amounts of federal income tax withheld which were reported on false Forms 1099-0ID. The Form 1099-OIDs (Original Issue Discount) improperly claimed that the clients had income and corresponding federal income taxes withheld, which resulted in a refund due from the IRS. Long and his co-conspirator caused nine (9) false claims to be filed with the IRS, totaling $4,701,010.00.“This defendant filed fraudulent tax returns with bogus claims in an attempt to steal from the U.S. Treasury and the taxpaying public,” said Tanya Brewer, Acting Special Agent in Charge of IRS Criminal Investigation.
This case was investigated by the IRS Criminal Investigation Division and the U.S. Postal Inspection Service.
New Orleans Woman Sentenced for Conspiracy to Commit Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KWANZA WELLS, age 34, a resident of New Orleans, was sentenced today for conspiring to defraud the Gulf Coast Claims Facility (GCCF).
U.S. District Judge Jay C. Zainey sentenced WELLS to three years probation, 72 hours of community service, $19,500 in restitution to the Deepwater Horizon Oilfield Trust, and $100 special assessment.
According to court documents WELLS, conspired to device a scheme to obtain money by means of fraudulent representations to defraud the GCCF. As a result of her false and fraudulent representations and documentation, the GCCF paid WELLS approximately $19,500.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the United States Secret Service and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Irene González was in charge of the prosecution.
Morris County, New Jersey, Man Charged with Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWARK, N.J. – Special agents of the FBIand officers of the Madison Police Department (MPD) arrested a Morris County, New Jersey, man at his home this morning for allegedly distributing sexually explicit images of children from his home computer, U.S. Attorney Paul J. Fishman announced.
Michael Hodukavich, 24, is charged by complaint with one count of distributing images of child sexual abuse over the Internet. He appeared this afternoon before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court and was released on $100,000 bond.
According to the criminal complaint filed today:
On Nov. 20 and 21, 2014, Hodukavich distributed videos and images depicting child sexual abuse on the Internet via peer-to-peer file sharing software, which allowed others access to the material in shared directories. An undercover agent discovered and downloaded the images and videos, and the username and IP address of the sharer was traced back to Hodukavich’s residence.
The distribution count carries a minimum penalty of five years in prison and a maximum potential penalty of 20 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and the MPD, under the direction of Chief Darren Dachisen, Chief of Police, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Melissa M. Wangenheim of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
15-012
Defense counsel: James S. Friedman Esq., NewarkHodukavich, Michael Complaint
Miami-Dade Resident Sentenced to 14 Years in Prison in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Wisly Toussaint, 36, of Miami, was sentenced to 14 years in prison, followed by three years of supervised release, and was ordered to pay $317,557 in restitution.
Toussaint was previously convicted by a federal jury of one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b), two counts of access device fraud, in violation of Title 18, United States Code, Section 1029(a), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to evidence presented during the five-day trial, Toussaint possessed and trafficked in personal identifying information (PII), that is names, dates of birth and social security numbers, stolen from a mental health facility in Philadelphia, Pennsylvania. In October of 2013, Toussaint was approached by two individuals cooperating with law enforcement and agreed to sell the cooperators the stolen PII, which Toussaint stated he obtained from a partner in Sarasota, Florida. Toussaint later sold the cooperators hundreds of identities stolen from the mental health facility in two separately recorded meetings.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.
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.
Maryland Woman Sentenced to Federal Prison for Massive Identity Theft and Tax Fraud SchemeRead the Press Release
A former bank employee was sentenced today to serve 87 months in prison for her role in a far-reaching identity theft and tax fraud scheme in which she used her position to help process deposits and withdrawals of nearly $1.1 million in fraudulently obtained federal income tax refunds.
Yvette Haden, 50, of Suitland, Maryland, is among approximately a dozen people who have pleaded guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information. The overall case involves the filing of at least 12,000 fraudulent federal income tax returns.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s Washington Division, Assistant Inspector General for Investigations John L. Phillips for the U.S. Department of Treasury, and Special Agent in Charge Kathy A. Michalko for the U.S. Secret Service’s Washington Field Office.
Haden pleaded guilty in April 2014 in the U.S. District Court for the District of Columbia to one count of conspiracy to defraud the United States and one count of bank fraud. She was sentenced by the Honorable Rosemary M. Collyer. As part of her plea agreement, Haden must pay $973,376 in restitution to the IRS and she also is subject to a forfeiture money judgment of the same amount. Upon completion of her prison term, Haden will be placed on three years of supervised release.
Haden was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance. At least 12,000 fraudulent federal income tax returns were filed for the tax years of 2005 through 2012, seeking refunds of at least $40 million. The returns were often filed in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. The refunds listed more than 400 “taxpayer” addresses in the District of Columbia, Maryland and Virginia.
The government’s evidence showed that participants in the schemes had various roles: some stole the identifying information; some permitted their personal identifying information to be used; some created and mailed the fraudulent federal tax returns; some permitted their addresses to be used for receipt of the refund checks; some helped cash the checks; some provided bank accounts for negotiation of checks; and some forged endorsements of identity theft victims on the refund checks.
According to the government’s evidence, from 2007 through 2010, Haden was employed as a financial services representative at a bank branch in Southeast Washington, D.C. She assisted co-conspirators in the scheme and violated the bank’s policies and procedures through a series of actions, including opening three business checking accounts in the names of three purported sole proprietorships. Haden, who at the time of her crimes had more than 25 years of banking industry experience, was solely responsible for verifying client identities and documents and entering client information directly into the computer. Once the accounts were opened, Haden aided the co-conspirators by processing deposits of fraudulently obtained U.S. income tax refund checks, as well as withdrawals. To hide her activity, she falsified slips documenting withdrawals. Haden was compensated by one of the co-conspirators for her role in the offenses.
Also, according to the government’s evidence, Haden opened a checking account in her own name at a credit union in 2012 and deposited or transferred 14 refund checks to that account.
In total, from June 2010 through November 2012, Haden negotiated 398 fraudulent income tax refund checks totaling $1,024,271.
In announcing the sentence, U.S. Attorney Machen, Acting Deputy Assistant Attorney General Wszalek, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Special Agent in Charge Michalko commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the U.S. Attorney’s Office’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who are prosecuting cases in the investigation.
Maryland Woman Sentenced to Federal Prison for Massive Identity Theft and Tax Fraud SchemeDefendant, A Bank Employee, Processed Deposits and Withdrawals of More Than $1 Million in Fraudulently Obtained Tax RefundsRead the Press Release
WASHINGTON –A former bank employee was sentenced today to serve 87 months in prison for her role in a far-reaching identity theft and tax fraud scheme in which she used her position to help process deposits and withdrawals of nearly $1.1 million in fraudulently obtained federal income tax refunds.
Yvette Haden, 50, of Suitland, Maryland, is among approximately a dozen people who have pleaded guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information. The overall case involves the filing of at least 12,000 fraudulent federal income tax returns.
The sentencing was announced by U.S. Attorney Ronald C. Machen Jr., Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Washington Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s Washington Division, Assistant Inspector General for Investigations John L. Phillips for the U.S. Department of Treasury, and Special Agent in Charge Kathy A. Michalko for the U.S. Secret Service’s Washington Field Office.
Haden pleaded guilty in April 2014 in the U.S. District Court for the District of Columbia to one count of conspiracy to defraud the United States and one count of bank fraud. She was sentenced by the Honorable Rosemary M. Collyer. As part of her plea agreement, Haden must pay $973,376 in restitution to the IRS and she also is subject to a forfeiture money judgment of the same amount. Upon completion of her prison term, Haden will be placed on three years of supervised release.
Haden was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance. At least 12,000 fraudulent federal income tax returns were filed for the tax years of 2005 through 2012, seeking refunds of at least $40 million. The returns were often filed in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners. The refunds listed more than 400 “taxpayer” addresses in the District of Columbia, Maryland and Virginia.
The government’s evidence showed that participants in the schemes had various roles: some stole the identifying information; some permitted their personal identifying information to be used; some created and mailed the fraudulent federal tax returns; some permitted their addresses to be used for receipt of the refund checks; some helped cash the checks; some provided bank accounts for negotiation of checks; and some forged endorsements of identity theft victims on the refund checks.
According to the government’s evidence, from 2007 through 2010, Haden was employed as a financial services representative at a bank branch in Southeast Washington, D.C. She assisted co-conspirators in the scheme and violated the bank’s policies and procedures through a series of actions, including opening three business checking accounts in the names of three purported sole proprietorships. Haden, who at the time of her crimes had more than 25 years of banking industry experience, was solely responsible for verifying client identities and documents and entering client information directly into the computer. Once the accounts were opened, Haden aided the co-conspirators by processing deposits of fraudulently obtained U.S. income tax refund checks, as well as withdrawals. To hide her activity, she falsified slips documenting withdrawals. Haden was compensated by one of the co-conspirators for her role in the offenses.
Also, according to the government’s evidence, Haden opened a checking account in her own name at a credit union in 2012 and deposited or transferred 14 refund checks to that account.
In total, from June 2010 through November 2012, Haden negotiated 398 fraudulent income tax refund checks totaling $1,024,271.
In announcing the sentence, U.S. Attorney Machen, Acting Deputy Assistant Attorney General Wszalek, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Special Agent in Charge Michalko commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the U.S. Attorney’s Office’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who are prosecuting cases in the investigation.
15-011Lyons Man Sentenced on Drug ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Daniel Safranec, 29, of Lyons, NY, who was convicted of manufacturing more than 50 marijuana plants, was sentenced to 12 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on November 6, 2012, New York State Police troopers responded to a call in vicinity of 7312 Old Lyons Road in Lyons for a report of pigs which were not contained within a pen. Upon arrival, troopers saw two pigs loose in the yard of the residence. Troopers approached the residence to speak with the owner, whom they identified as Daniel Safranec, and detected the smell of marijuana coming from the residence. They briefly spoke with the defendant and then left the area. Troopers later returned with a search warrant. During the execution of the search warrant, troopers located 261 marijuana plants in various stages of growth, mason jars used for storage of dried marijuana, and various pieces of high wattage grow lights and other equipment necessary for operating a sophisticated indoor marijuana cultivation operation. Law enforcement also located and seized approximately $800.00 in US currency.
In April of 2013, after a follow-up investigation, Safranec was arrested on federal drug charges related to the November 6, 2012, incident. When officers went to arrest Safranec on April 23, 2013, they observed approximately five bundles of a substance which they believed to be marijuana located on a kitchen counter, marijuana clippings in a plastic bin in the living room and a glass mason jar on the kitchen counter which contained dried marijuana. Law enforcement obtained a second search warrant for the residence. Agents found marijuana on the floor near the bedrooms and multiple marijuana plant structures at various stages of growth, as well as equipment associated with a marijuana grow operation. In a barn on the property, officers discovered racks of marijuana which had been harvested and appeared to be drying. The harvested marijuana and the various items associated with marijuana cultivation, as well as a total of 202 marijuana plants, were seized.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the New York State Police, under the direction of Major Craig S. Hanesworth.
Luzerne County Man Sentenced to Prison on Drug ChargeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Luzerne County man was sentenced today, in federal court in Scranton, by Senior United States District Judge Edwin Kosik, to serve 60 months in prison on a charge of possession with intent to distribute marijuana.
According to United States Attorney Peter Smith, Michael Hughes, age 27, a resident of Kingston, pleaded guilty to the charge last year. Hughes was ordered to serve an additional 3 years’ under court supervision upon his release from prison.
Hughes was charged after an investigation conducted by the Kingston Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives resulted in the seizure of a firearm and a distribution quantity of marijuana from a vehicle operated by Hughes.The case was prosecuted by Former Assistant United States Attorney Amy Newman and Assistant United States Attorney William S. Houser.
Local Podiatrist Pleads Guilty to Health Care Fraud ChargesRead the Press Release
St. Louis, MO – LAWRENCE B. IKEN, DPM, and his company each pled guilty to charges involving the submission of false documents and reimbursement claims related to podiatric services purportedly provided by Dr. Iken, from 2006 through July 2014. As part of his plea, Dr. Iken has agreed to a money judgment of $999,170, which represents the amount of reimbursement that he and his company received for the health care claims.
According to court documents, Dr. Iken and his company, Lawrence B. Iken, DPM, LLC., have offices in Manchester and Creve Coeur, Missouri. Dr. Iken is a sole practitioner who provided podiatry services to patients at his Manchester and at his Creve Coeur offices and at various nursing homes in the St. Louis area. In addition to his office practice, Dr. Iken is an independent contractor for Preferred Podiatry Group, Inc. (PPG). According to its website, PPG provides podiatric care to residents in nursing homes and other long-term care facilities in Missouri and five other states. As a PPG contractor, Dr. Iken provided services to nursing home residents on Wednesdays and Thursdays. With his plea, Dr. Iken admitted that on thousands of occasions, he billed Medicare, Medicaid and private insurance companies for the incision and drainage of abscesses and hematomas, when he actually only clipped the toenails of the patients.
Iken, of Chesterfield, and his company each pled guilty to one felony count of healthcare fraud before United States District Judge Ronald L. White. Sentencing has been set for April 17, 2015.
Dr. Iken now faces a maximum penalty of 10 years in prison and/or fines up to $250,000; the company faces a maximum fine of $500,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Local Businessman Pleads Guilty to Failing to File Tax ReturnRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DAVID DAY, age 56, a resident of New Orleans, pled guilty today to failure to file tax returns.
According to the Bill of Information, from January 1, 2007, through at least December 31, 2010, DAY owned and operated Louisiana Support Services, Inc. (“LSS”), a limited liability corporation that provided courier services for law firms in southeast Louisiana. DAY was primarily responsible for the day-to-day activities of the company, including all financial matters and bookkeeping. From 2007 through 2010, DAY earned substantial amounts of income from the operation of LSS. For each of the tax years 2007 through 2010, DAY did not file individual tax returns within the time set forth by law and did not request an extension of time in which to file a return.
DAY pled guilty to failure to file a tax return for the year 2009, which carries a possible a maximum term of imprisonment of one year, a fine of $25,000 and one year of supervised release following any term of imprisonment.
U.S. District Judge Jay C. Zainey set sentencing on April 14, 2015.
U.S. Attorney Polite praised the work of the Internal Revenue Service, Criminal Investigations Division in investigating this matter. Assistant U. S. Attorney Patrice Harris Sullivan is in charge of the prosecution.
KC Man Sentenced to Life in Prison for $20 Million Drug-trafficking Conspiracy, Murder-for-hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., was sentenced in federal court today for his role in a multi-million dollar drug-trafficking conspiracy and an unsuccessful murder-for-hire conspiracy.
Andre Taylor, also known as “Dre,” 49, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to life plus 30 years in federal prison without parole. The court sentenced Taylor to life in prison for the drug-trafficking and murder-for-hire convictions. The court also sentenced Taylor to a consecutive term of 30 years for possessing a machine gun in furtherance of a crime of violence.
On Sept. 10, 2014, Taylor was found guilty at trial of participating in a conspiracy to distribute large quantities of marijuana and cocaine between Feb. 1, 2010, and Feb. 25, 2014. Taylor was also convicted of participating in a conspiracy to commit murder-for-hire, aiding and abetting the distribution of cocaine and possessing a machine gun in furtherance of a crime of violence (the murder-for-hire conspiracy).
Evidence introduced during the trial indicated that Taylor was the head of a major cocaine and marijuana distribution organization in the metropolitan area. A Mexico-based cartel supplied narcotics to the drug-trafficking organization and Taylor sometimes traveled to Mexico to buy drugs for resale within the Kansas City area. Taylor boasted that he personally sent $20 million back to Mexico. Numerous shipments of cocaine, totaling more than 100 kilograms, were transported to Kansas City from Mexico.
Taylor’s relatives and others assisted him in recruiting buyers and arranging sales. His base of operation was in the 2300 block of Hardesty in Kansas City, Mo., where his family owned three houses next door to each other. Confidential informants participated in numerous controlled buys of narcotics. Many of those buys took place in, around, or outside of the three Taylor houses.
In intercepted telephone conversations, Taylor boasted of spending millions of dollars to buy drugs to sell in the Kansas City area. Based on telephone interceptions, a murder-for-hire plot was discovered during the conspiracy. The intended victim was a co-conspirator and former trusted associate of Taylor’s.
Co-defendant Victor Vickers, also known as “VV,” 30, of Kansas City, was found guilty at trial of participating in a conspiracy to distribute less than 100 kilograms of marijuana. In addition to Taylor and Vickers, 17 co-defendants have pleaded guilty to charges contained in the federal indictment.
Drug-Trafficking Conspiracy
A confidential source completed a series of controlled purchases of cocaine from Taylor and his co-conspirators in 2011 and 2012.
On Sept. 27, 2012, search warrants were executed at the three homes owned by the Taylor family at 23rd and Hardesty. Approximately 227 pounds of marijuana was seized, as well as an assault rifle and body-armor-piercing bullets. In addition, on Nov. 30, 2012, more than 1,000 pounds of marijuana, which was intended for delivery to Taylor, was recovered from a truck and trailer being driven by a co-conspirator. This co-conspirator told investigators that he had delivered marijuana to Kansas City to Taylor seven or eight times, and he had transported $500,000 to $700,000 to Arizona for these drug shipments.
FBI agents conservatively estimate that Taylor was responsible for distributing at least 120 kilograms of cocaine and at least 2,000 pounds of marijuana, either himself or through one of his many confederates.
Murder for Hire Conspiracy
The intended victim of the murder-for-hire conspiracy was co-defendant William E. Brown, also known as “Billy,” 43, of Kansas City. Taylor believed that Brown, a one-time trusted associate, stole $500,000 and more than 13 kilograms of cocaine from Taylor’s downtown loft apartment. (Taylor also maintained a residence at a luxury apartment on the County Club Plaza.) Taylor sought to hire a “hit man” to do the job and contacted co-defendant Kenneth Vaughn Cooper, 32, of Kansas City.
Brown pleaded guilty to his role in the drug-trafficking conspiracy and admitted that he purchased at least five kilograms of cocaine from Taylor. Cooper pleaded guilty to his role in the murder-for-hire conspiracy and admitted that he was supposed to be paid a share of the stolen $500,000 for committing the murder.
On Aug. 18, 2012, FBI agents intercepted a telephone call in which Taylor said, “it’s necessary to kill him,” referring to Brown.
On Aug. 21, 2012, agents intercepted a phone call between Cooper and Taylor. Taylor said he had a “hammer” at “23rd and Hardesty” and Cooper said he was going to come and get it. Later that day, Jackson County Sheriff’s deputies arrested Cooper on outstanding warrants while he was a passenger in a truck driven by his father. As deputies approached the vehicle they could smell burnt marijuana coming from inside. When the vehicle was searched, deputies recovered a firearms case behind the driver’s seat that contained a machine gun – a MAC-10 style homemade .45-caliber firearm with no serial number – and a metal stick magazine with 18 live rounds of .45-caliber ammunition.
This case was prosecuted by Assistant U.S. Attorneys Stefan C. Hughes and Cindi Woolery. It was investigated by the FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, the Jackson County Drug Task Force, the Lee’s Summit, Mo., Police Department, and the Kansas City, Mo., Police Department.
KC Man Charged with Bank Robbery, Carjacking Following Police ShootingRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was shot by police officers was charged in federal court today with bank robbery and carjacking.
Steven Marquain Davis, 29, of Kansas City, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Davis is charged with armed bank robbery, carjacking and use of a firearm during a violent crime (carjacking).
Today’s criminal complaint alleges that Davis used a bomb to rob the Commerce Bank at 922 Walnut St., Kansas City, Mo., on Friday, Jan. 9, 2015.
According to an affidavit filed in support of the criminal complaint, Davis entered the bank between 4:10 and 4:20 p.m. Davis, allegedly holding a remote control device, approached a teller counter and placed a black duffel bag on the counter. The remote control was described as having a red wire wrapped around it and similar in appearance to the remote used on remote control toys. Davis allegedly told the teller “gimme everything” and that “it’s” on the side of the building, which the teller believed referred to a bomb because of the remote he was holding. The teller placed $29,689 in the black duffel bag.
After Davis left the bank, the affidavit says, he approached a 2012 Suzuki Grand Vitara on Petticoat Lane, mid-block between Main Street and Walnut Avenue. Davis allegedly pulled on the door handle and ordered the driver to open the door. When she refused, he allegedly pointed a handgun at her and again stated, “Open the door.” He began banging on the window of her vehicle with the handgun, the affidavit says, before she drove away from the area.
A witness confronted Davis in the street, the affidavit says. Davis allegedly pointed a handgun at the witness and stated, “What are you looking at?” Davis allegedly tried unsuccessfully to get into two other cars in the area before multiple police officers arrived on the scene. Davis allegedly pointed a handgun at the officers, who then fired at Davis and wounded him before taking him into custody. Investigators collected $29,690, a remote device and a Smith & Wesson .38-caliber revolver from the scene where Davis was arrested.
FBI agents located a device that appeared to be a bomb in the southwest area of the bank lobby. FBI and Kansas City, Mo., Police Department bomb technicians responded and determined the explosive device posed an imminent threat to public safety. Bomb technicians rendered the device safe.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Justice Department Reaches Settlement with National Museum of Crime and Punishment to Improve Access for People with DisabilitiesRead the Press Release
The Department of Justice announced today that it has reached a settlement with the National Museum of Crime and Punishment (Crime Museum) to address alleged violations of the Americans with Disabilities Act (ADA). The settlement agreement resolves allegations that some of the Crime Museum’s programs, exhibits and facilities were not accessible to people with disabilities. As a place of public accommodation under Title III of the ADA, the Crime Museum is required to be accessible to people with disabilities and provide full and equal enjoyment of its goods, services and facilities.
The Crime Museum, located in Washington, D.C., explores the history of crime, law enforcement, forensic science and crime scene investigation (CSI). Displays and exhibits are spread across three stories and 28,000 square feet of gallery space focusing on law enforcement from medieval times, the time of pirates and the old west, up to the present. The Crime Museum’s permanent exhibits include a CSI lab, a simulated FBI shooting range, a high speed police simulator, a galley of notorious criminals and America’s Most Wanted stage set.
Under the settlement, the Crime Museum must take steps to ensure that all of its programs, exhibits and facilities are accessible to people with disabilities, including by:
- providing staff assistance or pre-recorded audio description of program and exhibit information for patrons who are blind or have low vision;
- providing a printed copy of program information that is not currently available in print, such as daily and seasonal exhibits that are not in the printed brochure, for patrons who are deaf or hard of hearing;
- providing museum tours that are audio described and include tactile experiences for individuals who are blind or have low vision;
- providing printed materials, floor plans and maps in alternate formats (audio, large print and Braille);
- providing a description in an accessible format of each museum-sponsored public program and special event;
- ensuring that its website conforms to the Level AA Success Criteria and Conformance Requirements of the Web Content Accessibility Guidelines 2.0; and
- remediating physical barriers such as protruding objects, inaccessible routes and restroom barriers.
“This agreement ensures that people with disabilities will be able to enjoy the fascinating elements of the history of crime and law enforcement together with their friends and family just like other patrons,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Justice Department is committed to removing these types of barriers, and we commend the Crime Museum’s efforts to improve accessibility for all patrons.”
The agreement resolves a compliance review under the ADA. People interested in finding out more about the ADA, the Standards for Accessible Design or this agreement can call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or visit the ADA website.
Jury Finds Red Lake Man Guilty of Distributing Child PornographyRead the Press Release
James Needham possessed more than 1,300 images of child sexual abuse
United States Attorney Andrew M. Luger today announced the conviction of JAMES PATRICK NEEDHAM, 53, of Red Lake, Minn., for distributing and possessing images and videos containing child pornography. On May 7, 2013, NEEDHAM was indicted on one count of Distribution of Child Pornography and one count of Possession of Child Pornography. On January 9, 2015, following a three-day trial, a federal jury found NEEDHAM guilty on both counts.
“Protecting children from the physical and psychological trauma associated with the distribution of images and videos portraying their sexual abuse is a law enforcement priority,” said Assistant U.S. Attorney Laura M. Provinzino. “This verdict demonstrates that those who possess and distribute child pornography will be prosecuted to the fullest extent of the law. I thank the jury members for their service in this very difficult case.”
As proven at trial, NEEDHAM possessed images and videos containing visual depictions of minors engaged in sexually explicit conduct. On August 4, 2010, NEEDHAM distributed several images of similar material. According to documents filed in court, the illegal images were reported to the National Center for Missing and Exploited Children (NCMEC) through its “Cyber Tipline.” The NCMEC notified the FBI which, in turn, tracked the username and IP address associated with the illegal images to NEEDHAM’S Red Lake residence. The Red Lake Police Department discovered more than 1,300 images and 100 videos containing child pornography on a computer at NEEDHAM’S home.
U.S. District Judge John R. Tunheim will sentence NEEDHAM at a later date, yet to be scheduled.
This case is the result of an investigation by the Federal Bureau of Investigation and the Red Lake Police Department in response to “cyber tips” reported to the National Center for Missing and Exploited Children.
Assistant U.S. Attorneys Laura M. Provinzino and Katharine T. Buzicky are prosecuting this case.
This case was brought as part of Project Safe Childhood (“PSC”), 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 U.S. Attorney offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab “resources.”
Defendant Information: JAMES PATRICK NEEDHAM, 53
Red Lake, Minn.
Convicted: • Distribution of Child Pornography, 1 count
• Possession of Child Pornography, 1 countJury Convicts Gregoire George of Possession of Prison Contraband ChargesRead the Press Release
St. Croix, USVI B After a three-day trial, a federal jury on St. Croix convicted Gregoire George, 37, of St. Thomas, of two counts of Possession of Prison Contraband and one count of Promoting Prison Contraband announced United States Attorney Ronald W. Sharpe, , Drug Enforcement Administration (DEA) Special Agent-in-Charge Vito S. Guarino, and United States Marshal Cheryl Jacobs.
The top count carries a maximum penalty of five years in prison. George remains incarcerated pending sentencing. No sentencing date has been set.
Evidence presented at trial established that on June 14, 2013, while an inmate at the Golden Grove Adult Correctional Facility on St. Croix, George was found to be in possession of a cellular phone and a homemade weapon commonly referred to as a shank. Both prohibited items were found inside his cell by Virgin Islands Bureau of Corrections Officers.
"Contraband in prison is something that threatens the safety and security of inmates, employees, and the community as whole. Inmates in possession of cellular telephones present a particularly sinister threat as they can be used to facilitate criminal activity including narcotics distribution and murder, " U.S. Attorney Sharpe said.
United States Attorney Sharpe commended the efforts of the DEA, USMS and the Virgin Islands Bureau of Corrections who investigated the case and Assistant United States Attorneys Rami S. Badawy and Everard Potter who prosecuted it.
Houston Woman Sentenced for Defrauding Charity Organization of More Than $65KRead the Press Release
HOUSTON – Simone Nicole Gary, 36, of Houston, has been ordered to federal prison following her convictions of mail and Social Security fraud in relation to the submission of fraudulent claims to the American Kidney Fund (AKF), announced U.S. Attorney Kenneth Magidson. She pleaded guilty Aug. 11, 2014.
Today, U.S. District Judge Lynn N. Hughes, who accepted the guilty plea, upwardly departed and handed Gary a sentence of 69 months in federal prison to be immediately followed by three years of supervised release. At the hearing, Judge Hughes questioned Gary extensively about her criminal history and stated that the defendant had been involved in a widespread spree of stealing other people’s money. The court has also entered an order imposing restitution in the amount of $79,201.89.
On July 15, 2010, Gary used the name and Social Security number of another person to obtain employment at Fresenius Medical Clinic (FMC) in Houston as a financial coordinator. As part of her duties, Gary assisted clients with their financial needs and verified insurance information.
FMC provides kidney dialysis to patients with kidney failure and is a longtime client of AKF, located in Rockville, Md. AKF awards financial grants to dialysis patients to obtain health care insurance. AKF has an online process which allows a dialysis clinic to submit a grant application on behalf of a patient.
While employed at FMC, Gary submitted fraudulent applications to AKF for grants to patients undergoing dialysis. As a result, AKF mailed grant checks payable to these patients to the attention of Gary at FMC in Houston. Gary took these checks, forged patient signatures and then deposited them into her own bank account.
As a result of the scheme, AKF suffered a loss of $65,768.78.
Previously released on bond, Gary was permitted to remain on bond but ordered to voluntarily surrender either to a designated U.S. Bureau of Prisons facility or to the U.S. Marshals Service on Feb. 3, 2015.
The case was investigated by the Secret Service and Social Security Administration - Office of Inspector General. Assistant U.S. Attorney John Braddock is prosecuting.