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12 January 2015
Serial Robber Exiled to over 42 Years PrisonRead the Press Release
Robbed Over a Dozen Convenience Stores, Gas Stations and Restaurants in Five Months, Including Three 7-Elevens in Just Two Hours
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Anthony Akrah Morris, age 25, of Burtonsville, Maryland, today to 505 months in prison followed by five years of supervised release for conspiring to commit robbery, two counts of robbery and two counts of brandishing a firearm during a robbery. Judge Grimm also ordered Morris to pay restitution of $3,375.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Andrew G. McCabe of the Federal Bureau of Investigation - Washington Field Office; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief Cathy L. Lanier of the Metropolitan Police Department; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Michael E. Scott of the Mount Rainier Police Department; and Maryland Attorney General Brian E. Frosh.
According to evidence presented during the five day trial, Morris committed three robberies on May 19, 2012, two robberies on May 31, 2012 and one robbery on July 21, 2012. Morris would observe the target businesses before the robberies, plan the robberies with his co-conspirators, participate in the robberies and divide and receive a portion of robbery proceeds. During the robberies, Morris and his conspirators partially hid their faces with cloths or a mask. In all six robberies, Morris stole proceeds from the business, while a co-conspirator brandished a firearm. In two of the robberies, Morris struck 7-Eleven employees when they were not moving fast enough to open the cash registers.
Specifically, at 3:05 a.m. on May 19, 2012, Morris and a co-conspirator entered the 7-Eleven store at 1927 Rhode Island Avenue, NE, Washington, D.C. While a co-conspirator brandished a firearm, Morris took money from the cash register and they escaped. They similarly robbed two other 7-Eleven stores later that morning: one at 4:16 a.m., located at 1927 Rhode Island Avenue, NE, Washington, D.C. where they stole $100 from the cash register; and the other at 5:03 a.m., located at 3004 Forestville Road in Forestville, Maryland, where they stole $80.
In similar fashion, Morris and two co-conspirators robbed another 7-Eleven store at 1:05 a.m. on May 31, 2012, located at 12009 Laurel Bowie Road, Laurel, Maryland. Morris jumped over a counter while a co-conspirator brandished a firearm. The co-conspirator ordered customers to the floor. Morris took approximately $340 from the store cash register. Morris and a co-conspirator also took $475 worth of cigarettes from the store. One of the co-conspirators took money and items from customers, including an Apple iPhone from a female customer. The co-conspirators fled from the store in a vehicle driven by another co-conspirator.
Shortly thereafter, at 2:59 a.m., Morris and two of his co-conspirators entered a McDonald’s restaurant located at 15569 Old Columbia Pike in Burtonsville. One of the co-conspirators brandished a firearm at persons inside the restaurant. Morris and his co-conspirators forced employees to open the the restaurant’s safe from which they took $1,400 in cash. They fled in a getaway vehicle driven by another co-conspirator.
On July 21, 2012, Morris and another co-conspirator entered a McDonald’s restaurant located at 4950 South Dakota Avenue, NE Washington, D.C. One of the co-conspirators brandished a firearm at persons inside the restaurant. Morris and his co-conspirator took $1,380 of store funds and fled the store. A Metropolitan Police Department crime scene technician recovered a partial palm print from the restaurant’s counter, and an FBI forensic examiner matched it to a palm print from a fingerprint card belonging to Morris.
Based on evidence presented at today’s sentencing hearing, Judge Grimm found that Morris committed seven additional armed commercial robberies, including two in which Morris pistol whipped a store employee.
United States Attorney Rod J. Rosenstein commended the FBI, Prince George’s County Police Department, Metropolitan Police Department, Montgomery County Police Department, Mount Rainier Police Department and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein praised the Prince George’s County State’s Attorney’s Office and Montgomery County State’s Attorney’s Office for their assistance and coordination. Mr. Rosenstein thanked Assistant United States Attorney Thomas M. Sullivan and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General, who prosecuted the case.
Sacramento Man Sentenced to over 13 Years in Prison for Sex Trafficking of a MinorRead the Press Release
SACRAMENTO, Calif. — Lonnell McCarter, 39, of Sacramento, was sentenced today by United States District Judge William B. Shubb to 13 years and one month in prison for participating in a sex trafficking venture that involved a child prostitute, United States Attorney Benjamin B. Wagner announced. After his release, McCarter will be subject to supervision for an additional twenty years.
According to court documents, in October 2010, McCarter took part in pimping a 13‑year-old child and an adult in the Sacramento area and also during a three-day trip from California to Reno, Nevada. During his involvement with the minor, McCarter took part in advertising the child for prostitution, purchased bus tickets for the minor to travel across state lines, and collected the money that the child and the adult prostitute received from customers in California and Nevada.
“Lonnell McCarter preyed upon and entrapped a 13-year-old girl in a lifestyle dominated by exploitation and abuse as she was sold for sex in both California and Nevada,” said Supervisory Special Agent Maria Johnson of the FBI’s Sacramento field office. “The FBI is committed to identifying, investigating, and arresting anyone who traffics a child. Our goal is to disrupt the cycle of coercion and violence by providing their victims a chance of a healthy and happy future.”
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew Morris prosecuted the case.
Presque Isle Man Sentenced to Seven Years on Firearm ChargeRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Wayne
E. Boulier, Jr., 34, of Presque Isle, Maine, was sentenced today in U.S. District Court by Chief
Judge John A. Woodcock, Jr. to seven years in prison to be followed by three years of supervised release for being a felon in possession of a firearm. Boulier pleaded guilty to the charge on February 24, 2014.Court records reveal that on the evening of April 6, 2013, the defendant went to a bar in
Presque Isle. A bouncer at the pub approached the defendant, told him that he needed to leave and escorted him to the door. As the defendant fell onto the sidewalk outside, he pulled up his shirt and pulled out a loaded pistol. A bar patron and a second bouncer restrained the defendant and took the pistol from him. Boulier was prohibited from possessing firearms because he had
12 prior state felony convictions.The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms &
Explosives, the Presque Isle Police Department and the Maine State Police.President's Task Force on 21st Century Policing to Convene First Public MeetingRead the Press Release
*****UPDATED MEDIA ADVISORY*****
Members of the President’s Task Force on 21st Century Policing will hold the first public listening session on TUESDAY, JAN. 13, 2015, AT 9:00 A.M., EST, at the Newseum in Washington, D.C. The Task Force members will hear testimony from five panels of witnesses on ways to improve the collaborative relationship between law enforcement and the communities they serve, exchange best practices for policing strategies, promote effective crime reduction and address concerns about violence directed at law enforcement.
WHAT: Task Force on 21st Century Policing’s First Listening Session
WHO: Task Force on 21st Century Policing
WHEN: TUESDAY, JANUARY 13, 2015
9:00 a.m. to 5:00 p.m. EST
WHERE: The Newseum
555 Pennsylvania Avenue NW
Washington, DC 20001
OPEN PRESS (MEDIA PRE-SET 7:45 a.m. EST//FINAL MEDIA ACCESS TIME 8:30 a.m. EST)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license as well as valid media credentials). Due to space limitations, entrance is not guaranteed. Media inquiries regarding logistics should contact Silas Darden at [email protected] or at (202) 307-0703. This event will be live streamed on the Task Force on 21st Century Policing webpage.
Task Force on 21st Century Policing Listening Session
9:00 a.m. EST Welcome Remarks and Task Force Overview
Ronald Davis, Executive Director of the Task Force and Director of the Office of Community Oriented Policing Services (COPS Office)
9:05 a.m. EST Opening Statements by Task Force Chairs & Introduction of Task Force
Members
Task Force Co-Chairs:
Charles Ramsey, Commissioner of the Philadelphia Police Department
Laurie Robinson, Professor at George Mason University
Task Force Members:
Cedric Alexander, Deputy Chief Operating Officer for Public Safety of DeKalb County and President of the National Organization of Black Law Enforcement Executives
Jose Lopez, Lead Organizer of Make the Road New York
Tracey Meares, Walton Hale Hamilton Professor of Law at Yale Law School
Brittany Packnett, Executive Director of Teach for America – St. Louis
Susan Rahr, Executive Director of Washington State Criminal Justice Training Commission
Constance Rice, Co-Director of The Advancement Project
Sean Smoot, Director and Chief Counsel of Police Benevolent & Protective Association of Illinois and the Police Benevolent Labor Committee
Bryan Stevenson, Founder and Executive Director of the Equal Justice Initiative
Roberto Villaseñor, Chief of Police of the Tucson Police Department
9:30 a.m. EST Witness Panel Discussion I:
Jennifer Eberhardt, Associate Professor of Psychology at Stanford University
Charles Ogletree, Jesse Climenko Professor of Law and Director at Harvard Law School
Tom Tyler, Macklin Fleming Professor of Law and Professor of Psychology at Yale Law School
Samuel Walker, Emeritus Professor of Criminal Justice at the University of Nebraska–Omaha
10:30 a.m. EST Witness Panel Discussion II:
Carmen Perez, Executive Director of The Gathering for Justice
Jim St. Germain, Founder of Preparing Leaders for Tomorrow
Jim Winkler, President and General Secretary of the National Council of Churches
Ashley Yates, Co-Founder of Millennial Activists United
11:30 a.m. EST Witness Panel Discussion III:
Richard Beary, President of the International Association of Chiefs of Police (IACP)
Chuck Canterbury, National President of the Fraternal Order of Police
Andrew Peralta, National President of the National Latino Peace Officers Association
Richard Stanek, Past President and Executive Committee’s Sergeant-at-Arms of the Major County Sheriffs’ Association and National Sheriffs’ Association
1:30 p.m. EST Witness Panel Discussion IV:
Sherrilyn Ifill, President and Director-Counsel of the NAACP Legal Defense and Educational Fund (NAACP LDF)
Laura Murphy, Director, Washington Legislative Office, American Civil Liberties Union (ACLU)
Vikrant Reddy, Senior Policy Analyst, Texas Public Policy Foundation’s Center for Effective Justice
Maria Teresa Kumar, President and CEO, Voto Latino
2:30 p.m. EST Witness Panel Discussion V:
Kevin Johnson, Mayor of Sacramento
Michael Nutter, Mayor of Philadelphia
Stephanie Rawlings-Blake, Mayor of Baltimore
3:30 p.m. EST Testimonies from the Audience
4:30 p.m. EST Task Force Closing Remarks
5:00 p.m. EST Meeting ends
*Written testimonies and a live stream of the meeting will available on the Task Force on 21st Century Policing webpage.
***
About the President’s Task Force on 21st Century Policing
The President’s Task Force on 21st Century Policing was established by an Executive Order signed by the President on Dec. 18, 2014. The Task Force – which includes law enforcement representatives, community leaders, young adults and notable scholars – will examine, among other issues, how to strengthen public trust and foster strong relationships between local law enforcement and the communities that they protect, while also promoting effective crime reduction. Members of the Task Force will engage federal, state, tribal and local officials, subject matter experts, young leaders, and nongovernmental organizations through meetings and 21st century technology. The Task Force will also convene listening sessions where they will hear testimony, including proposed recommendations for consideration, from invited witnesses and also receive comments and questions from the public.
Pittsburgh Man Facing 10 Years in Prison After Admitting to Possession of Child PornographyRead the Press Release
PITTSBURGH, Pa. – An Allegheny County resident pleaded guilty in federal court to a charge of possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
James Stover, 28, formerly of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that on or about Aug. 15, 2013, Stover knowingly possessed videos and images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
Judge Diamond scheduled sentencing for May 12, 2015, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Stover.
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.
Physician Owners of Mental Health Clinic Sentenced for $97 Million Medicare Fraud SchemeRead the Press Release
The two physician owners of a Houston-area mental health clinic were sentenced today to 148 months and 120 months respectively for their roles in a $97 million Medicare fraud scheme. A group home owner who sent residents to the clinic in exchange for kickbacks was also sentenced to 54 months in prison for her role.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the U.S. Department of Health & Human Services-Office of the Inspector General (HHS-OIG) Dallas Regional Office, the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Special Agent in Charge Joseph J. Del Favero of the Railroad Retirement Board-Office of Inspector General (RRB-OIG) Chicago Field Office and Inspector General Patrick E. McFarland of the Office of Personnel Management-Office of Inspector General (OPM-OIG) made the announcement.
“Doctors are not only bound by oath to serve the health of their patients, they are bound by duty to serve as gatekeepers for Medicare spending,” said Assistant Attorney General Caldwell. “In this case, without the criminal participation of Drs. Sanjar and Sajadi, this fraud simply could not have happened.”
Physicians Mansour Sanjar, 81, and Cyrus Sajadi, 67, the owners of Spectrum Care P.A., a community mental health clinic, were each convicted following a jury trial on March 12, 2014, of conspiracy to commit health care fraud and conspiracy to pay and receive kickbacks, as well as related counts of health care fraud and paying illegal kickbacks. Chandra Nunn, 36, a group home owner, was convicted of conspiracy to commit health care fraud and conspiracy to pay and receive kickbacks, as well as related counts of receiving illegal kickbacks. In addition to the prison sentences, U.S. District Judge Vanessa D. Gilmore of the Southern District of Texas ordered Sanjar and Sajadi to pay $8,058,612.39 in restitution, and Nunn to pay $1,885,667.41 in restitution. Co-defendants Adam Main, Shokoufeh Hakimi, Sharonda Holmes and Shawn Manney were also convicted and are scheduled to be sentenced on Jan. 20, 2015.
According to evidence presented at trial, Sanjar and Sajadi orchestrated and executed a scheme to defraud Medicare beginning in 2006 and continuing until their arrest in December 2011. Sanjar and Sajadi owned Spectrum, which purportedly provided partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for severe mental illness. The Medicare beneficiaries for whom Spectrum billed Medicare for PHP services did not qualify for or need PHP services.
Evidence presented at trial showed that Sanjar and Sajadi signed admission documents and progress notes certifying that patients qualified for PHP services, when in fact, the patients did not qualify for or need PHP services. Sanjar and Sajadi also billed Medicare for PHP services when the beneficiaries were actually watching movies, coloring and playing games, which are not activities covered by Medicare.
Evidence presented at trial also showed that Sanjar and Sajadi paid kickbacks to group care home operators and patient recruiters, including Nunn, Holmes and Manney, in exchange for delivering ineligible Medicare beneficiaries to Spectrum. In some cases, the patients received a portion of those kickbacks. According to evidence presented at trial, Spectrum billed Medicare for approximately $97 million in services that were not medically necessary and, in some cases, not provided.
The case was investigated by the FBI, HHS-OIG, Texas MFCU, RRB-OIG and OPM-OIG and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chief Laura M.K. Cordova, Senior Trial Attorney Jonathan T. Baum and Trial Attorney William S.W. Chang of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Orange County Man Who Bilked Physicians and Dentists Out of More Than $2 Million Sentenced to 57 Months in Federal PrisonRead the Press Release
SANTA ANA, California – An Orange County man who admitted targeting dozens of doctors and others in schemes that promised large returns on investments in the medical and dental fields and caused victims to lose more than $2 million was sentenced today to 57 months in federal prison.
David Rose, 58, of Coto de Caza, was sentenced this morning by United States District Judge James V. Selna.
Rose pleaded guilty in July to one count of wire fraud and one count of mail fraud.
According to court documents, over a six-year period that ran through May 2011, Rose solicited physicians to invest in an Irvine company he called M.D. Venture Partners (MDVP) and falsely promised lucrative returns on investments in emerging medical technologies.
In a subsequent scheme, Rose used Technology Innovation Partners (TIP) and Millenium Marketing Partners, both of Irvine, to solicit dentists and orthodontists to invest, claiming funds would be pooled and invested in a company developing ablation technology that would be used to remove wisdom teeth in children without surgery.
Throughout both schemes, investor funds were misused, with Rose using victims’ money for personal expenses. According to a plea agreement filed in court, Rose used investor funds to pay $7,500 monthly rent for a house in Coto de Caza, college tuition, an $80,000 Sea Ray boat and shares in the Green Bay Packers.
The investigation revealed that no money was invested by either MDVP or TIP.
In the MDVP scheme, Rose caused approximately 32 victims to lose more than $900,000, according to court documents. In the TIP scheme, 45 victims lost more than $1.4 million. As part of today’s sentencing, Judge Selna ordered Rose to pay a total of $2,315,394 in restitution.
Rose was arrested in May 2013 and has remained in custody since that time.
“The theft of more than $2 million by fraud is a serious offense, an offense in this case that took place over many years,” prosecutors wrote in a sentencing brief.
The case against Rose is the product of an investigation by the Federal Bureau of Investigation.
Release No. 15-002
Ohio doctor sentenced for two drug-related feloniesRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Dr. Robert Timothy Hogan II, 33, of Coolsville, Ohio, was sentenced to 48 months in federal prison, followed by three years of supervised release.
On Oct. 15, 2014, Hogan pleaded guilty to traveling in interstate commerce and using a communications device to facilitate a felony.
“It’s appalling that a licensed physician would pump illegal pills into our communities like this,” Goodwin said. “Every time we put a law-breaking doctor out of business is a big step toward getting this problem under control.”
Hogan admitted to traveling between Athens County, Ohio, and Wood County, West Virginia, and using his cellphone to facilitate an arrangement in which he wrote prescriptions for controlled substances to an individual who was not his patient, and for which there was no legitimate medical purpose for receiving half the pills after the prescriptions were filled. He wrote more than 160 illegal prescriptions, for more than 17,000 pills between January 2013 and February 2014.
United States District Judge John T. Copenhaver, Jr. imposed the sentence.
The investigation was conducted by the West Virginia State Police and Federal Bureau of Investigation. Assistant United States Attorney Steven Loew handled the prosecution of this case.
The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill and heroin trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
North Tonawanda Man Pleads Guilty to Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Thomas A. Sparks, 23, of North Tonawanda, N.Y., pleaded guilty to receipt of child pornography, before Chief U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 20 years, and a fine of $250,000.Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in June of 2013, the Federal Bureau of Investigation received a report that Sparks and a friend were downloading child pornography from the internet. On June 26, 2013, the FBI interviewed the defendant’s friend, who admitted that he and Sparks had downloaded child pornography from the internet onto a flash drive.
Later that day, the FBI interviewed the defendant at his residence. At that time, Sparks admitted that he had downloaded child pornography from the internet onto the flash drive. The defendant also admitted that prior to the FBI’s arrival, he smashed the flash drive and threw it in the garbage. Sparks told investigators he got a phone call from his friend alerting him that the FBI was on the way to interview him. The flash drive was recovered from the garbage and was repaired by the FBI. A forensic analysis uncovered approximately 94 images of child pornography stored on the flash drive. Additionally, as part of the plea agreement, Sparks admitted that he engaged in a pattern of activity involving the sexual abuse or exploitation of a minor.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation, the Cheektowaga Police Department, under the direction of Chief David Zack, and the New York State Police, under the direction of Major Michael Cerretto.
Sentencing is scheduled for April 29, 2015, at 3:00 p.m. before Judge Skretny.
New Jersey Man Sentenced to 33 Months in Prison for Trafficking in Illegally-Imported Narwhal Tusks and Money LaunderingRead the Press Release
Andrew J. Zarauskas, a New Jersey resident, was sentenced to 33 months in prison for illegally importing and trafficking in narwhal tusks and associated money laundering crimes, announced Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. Zarauskas was also ordered to forfeit $85,089, six narwhal tusks and one narwhal skull. In addition, Zarauskas was ordered to pay a fine of $7,500. His prison sentence will be followed by three years of supervised release.
On Feb. 14, 2014, a federal jury in Bangor, Maine, convicted Zarauskas on six counts, including conspiracy, smuggling violations for buying and illegally importing narwhal tusks into the United States and money laundering violations associated with the illegal importations. The market value of the teeth and tusks illegally imported by Zarauskas was determined to be between $120,000 and $200,000.
Narwhals are marine mammals that are protected by the Marine Mammal Protection Act and are listed on Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). It is illegal to import parts of the narwhal into the United States without a permit and without declaring the parts at the time of importation to U.S. Customs and Border Protection and the U.S. Fish and Wildlife Service.
“The Justice Department is committed to the fight to save the world’s protected wildlife species, many of which are under sustained attack by poachers and wildlife traffickers,” said Assistant Attorney General Cruden. “We are particularly grateful to our federal and Canadian law enforcement partners for unraveling this scheme to traffic in narwhal tusks and for bringing Zarauskas and his co-conspirators to justice.”
“The significant penalties imposed today for Mr. Zarauskas send a powerful message to any individual that decides to engage in the trade of illegal wildlife,” said Deputy Assistant Director for Law Enforcement Edward Grace of the U.S. Fish and Wildlife Service. “We will continue to work closely with our international, federal and state partners to root out those individuals who exploit protected wildlife species for their own financial gain.”
“This is yet another case where dedicated investigators helped stop an international smuggling ring attempting to profit from the illegal exploitation and trade of vulnerable and threatened marine species,” said Assistant Administrator Eileen Sobeck for National Oceanic and Atmospheric Administration (NOAA) Fisheries. “NOAA will continue to work in collaboration with our international, federal and state law enforcement partners to make sure marine resources are protected now and into the future.”
According to the evidence presented a trial, Zarauskas purchased approximately 33 narwhal tusks over nearly six years from two Canadian co-defendants. The Canadian co-defendants purchased the narwhal tusks in Canada and subsequently brought them into the United States illegally by concealing the narwhal tusks either under their truck or under a utility trailer and not declaring the wildlife to border officials as required. Once in the United States, a Canadian co-defendant shipped the narwhal tusks to Zarauskas from Bangor, Maine. Zarauskas knew that the co-defendants lived in Canada and had illegally imported the narwhal tusks into the United States.
The case was investigated by agents from the Law Enforcement Offices of NOAA, U.S. Fish and Wildlife Service, and Environment Canada. The case was prosecuted by Trial Attorneys Todd S. Mikolop and James B. Nelson of the Department of Justice’s Environmental Crimes Section.
New Hampshire Man Arrested on Domestic Violence and Firearm Charges Arising Out of Saco Home InvasionRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: PRESS ALERT: Gregory Owens, 58, of Londonderry, New Hampshire, was arrested yesterday on charges filed in U.S. District Court of interstate domestic violence and discharging a firearm during and in relation to a crime of violence in connection with a home invasion shooting on December 18, 2014, at a residence in Saco, Maine. Owens will make his initial appearance in U.S. District Court in Portland today at 11:00 a.m.
Naperville Man Admits Stealing U.S. Computer Equipment Worth $332,000 While Working for Defense Contractor in AfghanistanRead the Press Release
CHICAGO — A Naperville man who worked for a U.S. military contractor pleaded guilty today to stealing U.S. military computer and communications equipment worth more than $332,000 from a military air base in Afghanistan and later selling and shipping almost half of the high-end equipment to vendors in the United States for re-sale.
TIMOTHY L. MAURER, 51, a former systems administrator for Raytheon Corp., a U.S. Department of Defense contractor, was charged last month with one count of theft of government property. He pleaded guilty today at his arraignment before U.S. District Judge Robert M. Dow, Jr., in Federal Court in Chicago.
“Stealing from the U.S. government undermines our mission in Afghanistan and anyone seeking to defraud the American taxpayer will be brought to justice,” said John F. Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR).
The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Special Inspector General Sopko. The Air Force Office of Special Investigations (AFOSI), the Defense Criminal Investigative Service (DCIS), the Army Criminal Investigative Division/Major Procurement Fraud Unit (CID/MPFU), and SIGAR conducted the investigation.
In pleading guilty, Maurer admitted that between Dec. 23, 2013, and Feb. 2, 2014, he stole more than 150 items of computer and communications equipment, including laptop computers, cellular telephones, computer switches, adaptors, batteries, power cables, and electronic storage devices worth approximately $332,702. The equipment was stolen from storage containers and other areas belonging to the 445th Air Expeditionary Advisory Squadron, a U.S. Air Force unit, stationed at Shindand Air Base in Afghanistan. On at least one occasion, Maurer forced open a lock to gain entry to a storage container, and he also stole equipment from other locations where the equipment was being stored or used.
In January 2014, Maurer communicated with multiple vendors in the United States to arrange sales of the equipment that he stole. The vendors re-sold stolen equipment valued at approximately $152,697, while equipment worth approximately $180,005 was recovered from Maurer’s quarters, from vendors, or was intercepted after it was shipped but before it reached vendors. Maurer received payment from vendors via online transactions or wire transfer of funds.
Maurer is free on his own recognizance while awaiting sentencing, which was scheduled for April 7. He faces a maximum sentence of 10 years in prison and a $250,000 fine, while his plea agreement anticipates an advisory United States Sentencing Guidelines range of 24 to 30 months incarceration, and the Court must impose a reasonable sentence.
The government is being represented by Assistant U.S. Attorney Kartik K. Raman and DOJ Trial Attorney Wade Weems on detail to the Criminal Division’s Fraud Section from SIGAR.
Plea Agreement
Mortgage Broker Sentenced to 5 Years in Prison for Defrauding LendersRead the Press Release
PITTSBURGH, Pa. - A resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 60 months of imprisonment, to be followed by five years of supervised release, on his conviction of conspiracy to commit wire fraud and bank fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Donetta Ambrose imposed the sentence on Richard Stromberg, 50, of Bethel Park, Pa.
According to information presented to the court, Stromberg has been in the mortgage broker business since the 1990s. He worked first at a company called Century Three Home Equity and then opened his own business, which was called Great American Equity Mortgage. From in and around August of 2002, and continuing until in and around June of 2008, Stromberg knowingly conspired with various other individuals associated with Great American Equity Mortgage, many of whom were former employees of Century Three Home Equity, to defraud lenders. The conspiracy involved the submission to lenders of loan applications that contained material misrepresentations about the borrower’s financial condition, such as inflating the borrower’s income and assets, and appraisals that overstated the values of the properties serving as collateral for the loans. Stromberg and others also submitted false supporting documentation for the misrepresentations contained in the applications.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Stromberg. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Montgomery County Woman Sentenced to 8 Years in Prison for Transporting and Possessing Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Katherine Noelle Nash, age 27, of Burtonsville, Maryland, today to eight years in prison followed by a lifetime of supervised release for transporting and possessing child pornography. Judge Chasanow ordered that upon her release from prison, Nash must register as a sex offender in the place where she resides, where she is an employee, and where she 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 Stephen E. Vogt of the Federal Bureau of Investigation; Chief J. Thomas Manger of the Montgomery County Police Department; and Montgomery County State’s Attorney John McCarthy.
According to her plea agreement, on September 8 and 9, 2013, Nash distributed nine videos depicting prepubescent minors engaged in sexually explicit conduct to an undercover officer using a file sharing program.
On October 23, 2013, a search warrant was executed at Nash’s residence and law enforcement seized two computers and other digital media. One of the computers contained 12 images and a video file documenting Nash’s sexual abuse of a prepubescent female child, as well as sexually explicit conversations with another individual regarding the child. In addition, Nash possessed 37 files containing child pornography, including files that Nash had downloaded from the internet and distributed to the undercover officer. The second computer contained approximately 190 images and videos depicting children engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Montgomery County Police Department and Montgomery County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kelly O. Hayes and Kristi N. O’Malley, who prosecuted the case.
Montana Woman Pleads Guilty to Mail and Wire FraudRead the Press Release
NEWPORT NEWS, Va. – Julie L. Duffield, 45, of Eureka, MT, pleaded guilty yesterday to conspiracy to commit mail and wire fraud.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:14cr66.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller.
Duffield was indicted by a federal grand jury on November 17, 2014. Duffield faces a maximum penalty of twenty years in prison if convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. Duffield is scheduled to be sentenced on May 5, 2015.
In a statement of facts filed with the plea agreement, Duffield admits to owning and operating Professional Closing Company, a business that among other things provided closing serviced for the transfers of timeshare units from 2010 until 2013. This business was operated at various times from Arizona and Montana and prior to 2010 Duffield provided such services through another company.
A timeshare unit, generally a fully furnished resort accommodation, is a deeded or non-deeded interest in real estate divided into intervals, most commonly by week. As alleged in the indictment, co-defendant Keith Kosco, owned and operated a number of entities involved in travel, tourism and timeshare businesses including Resort Realty, Inc., Resort Solutions, Inc., and Exotic Equity Transfers, LLC (“EET”). Since at least 2007, EET conducted timeshare transfers in exchange for a fee charged to the original owner. It is alleged that Keith Kosco and his employees represented that the timeshare unit transfers conducted by EET would be legitimate and result in clean title passing to a new owner with no further obligations of timeshare ownership (including maintenance fees) on the original owner once the transfer was complete. Transfer paperwork was handled by EET in coordination with Duffield and Professional Closing Company which served as a third party closing entity from 2007 through at least mid-2013. Duffield received a fee from EET for engaging in such services. Beginning in 2009, EET used the names of stolen identities and straw owners as the new owners for the transferred timeshare units. Duffield and others accomplished the transfers by having a fraudulent deed and contract produced to document the sale, sending the documents by mail to the previous owners and then to the resort company. Upon completion of the transfers maintenance fee bills were sent to the new purported owners of the timeshares. Those mailings were collected by EET at a post office and the majority of the fees were never paid.
For a number of years Duffield and other employees used the stolen identity of “SL” as a grantee for transfers of timeshare units. “SL” was unaware that hundreds of timeshare units were being transferred to “SL’s” name. Duffield handled approximately 459 transfers of timeshare units to “SL.” Due to the number of units transferred to “SL,” certain resort companies raised objections to subsequent EET efforts to transfer units. Duffield and others contacted the resorts falsely claiming to be “SL” in order to accomplish the timeshare transfer. When it became evident that “SL” could no longer be used to transfer timeshares, Duffield recruited “FS” and “AG” to participate as straw buyers. Approximately 252 timeshare units were transferred to “FS” and 63 units were transferred to “AG.”
From 2009 through 2013, Duffield and others caused the transfer of over one thousand timeshare units into the names of stolen identities and straw owners causing losses to various resort companies. During this same time period EET collected fees related to the fraudulent transfers in excess of $600,000
This case was investigated by the FBI and the Internal Revenue Service. Assistant U.S. Attorney Brian J. Samuels is prosecuting the case on behalf of the United States.Local Pastor Sentenced for Embezzling over $900,000 from Community CenterRead the Press Release
TULSA, Okla.—Willard Lenord Jones, 63, of Tulsa, church pastor and former Executive Director of the Greater Cornerstone Community Development Project, was sentenced today by United States District Judge John E. Dowdell to a total of 37 months in prison for having committed three counts of wire fraud and one count of subscribing to a false tax return.
United States Attorney Danny C. Williams Sr., for the Northern District of Oklahoma, FBI Special Agent in Charge James E. Finch, for the Oklahoma City Division, and IRS Criminal Investigation (IRS CI) Special Agent in Charge R. Damon Rowe, for the Dallas Office made the announcement.
“Willard Jones has now been confronted with the magnitude of his crimes,” said U.S. Attorney Williams, “and he will have a long time to think about his crimes and the impact of his conduct on the South Haven community. I commend the coordinated efforts by the FBI and IRS CI and their commitment to aggressively investigate financial fraud crimes and to ensure justice is served for the community.”
"Crimes like those committed by Willard Jones violate the public trust and harm the efforts of legitimate individuals and organizations involved in improving their communities,” said FBI SAC Finch. "The FBI believes the sentence received by Mr. Jones sends a strong message throughout our community."
“Willard Jones lavished himself with hotel stays, restaurants, casinos, liquor, automobiles, a Rolex watch and a mink coat with funds he stole from the Church and the Greater Cornerstone Community Development Project and he destroyed the trust those organizations and the citizens of South Haven in West Tulsa had placed in him. In doing so, he also cheated all American taxpayers," said IRS CI SAC Rowe. “IRS CI was there to investigate, along with our other law enforcement partners, and we will continue to devote our resources to investigate fraud and seek justice for all American taxpayers.”
At a change of plea hearing on October 9, 2014, Jones admitted that, from September 2007 to June 2013, he misappropriated approximately $933,000 from the Greater Cornerstone Community Development Project, a non-profit organization formed to raise money for the building and operation of a community center in South Haven, a neighborhood in West Tulsa. He also admitted that he failed to report $390,061 of income in 2011 on his federal tax return for 2011.
As the Executive Director of the community center, Jones solicited monetary contributions from donors, including foundations, corporations, churches and individuals, to fund the development project. As part of the scheme, Jones fraudulently transferred funds from community center bank accounts to church bank accounts and then transferred those funds into personal bank accounts. Jones admitted using the money on personal expenses and luxury items, including hotels, gambling, liquor, automobiles, and jewelry.
An order has been entered forfeiting his residence, a Rolex watch and fur coat. A criminal forfeiture money judgment has also been entered against him in the amount of $933,507.80. United States Attorney Williams said, “One of the main purposes of the federal forfeiture laws is to deprive criminals of property acquired through their illegal activities. It is particularly rewarding that the United States will return forfeited proceeds to the victims in this case.”
In addition to receiving a sentence of incarceration of 37 months on the wire fraud counts and 36 months on the tax fraud count, all to run concurrently, the court imposed a period of supervised release of three years on the wire fraud counts and one year on the tax fraud count, all to run concurrently, and ordered Jones to pay restitution in the amount of $933,507.80 to the community center and $155,112 to the Internal Revenue Service. Restitution payments are first applied to the amount owed to the community center, and only after it is fully repaid will any additional payments be applied to the IRS restitution.
The case was investigated by the FBI and IRS CI. United States Attorney Danny C. Williams Sr., and Assistant U.S. Attorneys Joseph F. Wilson, Kevin C. Leitch, and Catherine Depew prosecuted on behalf of the United States.
Lakeland Man Pleads Guilty to Producing Child PornographyRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Benjamin Cuadrado (40, Lakeland) has pleaded guilty to producing and transporting child pornography. He faces a maximum penalty of 80 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, between July 2012 and March 2014, Cuadrado persuaded and coerced an infant and a toddler to engage in sexually explicit conduct for the purpose of producing multiple videos of the conduct. He then sent the videos to others over the Internet. The investigation revealed that Cuadrado had produced at least 50 videos depicting the children.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Miami Beach Police Department, the Polk County Sheriff’s Office, the Lakeland Police Department, and the National Center for Missing and Exploited Children. It is being prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.
Kern County Man Sentenced for Counterfeiting U.S. CurrencyRead the Press Release
FRESNO, Calif. — Alfonso Castellon, 41, of Bakersfield, was sentenced today to two and a half years in prison by Senior United States District Judge Anthony W. Ishii for counterfeiting U.S. currency and possessing images for counterfeiting purposes, United States Attorney Benjamin B. Wagner announced.
According to court documents, from January 2011 to March 2014, Castellon created counterfeit Federal Reserve Notes in $100 and other denominations. In March 2014, a search of his residence revealed sample images of $100 bills and computer equipment, printers, and ink associated with counterfeiting, along with a flash drive containing images of $100 bills. Castellon estimated he produced approximately 20 counterfeit $100 bills per week, or approximately $100,000 per year.
This case was the product of an investigation by the United States Secret Service, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Michael G. Tierney prosecuted the case.
Justice Department Settles Americans with Disabilties Act Case with Quinnipiac UniversityRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Acting Assistant Attorney General Vanita Gupta of the Justice Department’s Civil Rights Division, today announced that the government has reached a settlement with Quinnipiac University to resolve allegations that the university violated the Americans with Disabilities Act (ADA) by placing a student who had been diagnosed with depression on a mandatory medical leave of absence without first considering options for the student’s continued enrollment. Quinnipiac University is a private, coeducational university located in Hamden, Connecticut.
This matter stems from a complaint from a Quinnipiac University (“Quinnipiac”) student who had been removed from the university after she sought mental health counseling at the university. The complainant also alleged that, after she had been removed, Quinnipiac denied her request to refund her tuition.
Title III of the ADA prohibits discrimination on the basis of disability, including depression, by places of public accommodation.
The investigation determined that Quinnipiac discriminated against the complainant by placing her on mandatory medical leave because of her depression, and failed to consider modifying its mandatory medical leave policy to permit the complainant to complete her course work while living off campus by attending classes either online or in person.
Under the settlement agreement, Quinnipiac has agreed to pay to the complainant $17,000 to compensate her for emotional distress, pain and suffering, and $15,126.42 to pay off the loan she obtained to pay tuition to Quinnipiac. Quinnipiac also has agreed to implement a policy stating that it will not discriminate against applicants or students on the basis of disability, including persons with mental health disabilities, and to examine what modifications it can make to allow students with mental health disabilities to continue to participate in educational programs and attend their classes while seeking treatment for mental health conditions. The university also will provide training on Title III of the ADA, with a focus on mental health-related disability discrimination, to all staff.
“Quinnipiac removed this student from the university at a very vulnerable time in her life, and saddled her with a large student loan payment,” said U.S. Attorney Daly. “Instead of removing students from school, educational institutions must be equipped to manage and educate students who recognize, disclose and are treating their mental health disabilities. We’re pleased that Quinnipiac has settled this matter, compensated the complainant and will implement a non-discrimination policy to help prevent this ADA violation from occurring in the future.”
“This settlement agreement reflects the critical role that educational institutions play in ensuring that students with mental health disabilities are afforded an equal opportunity to fully participate in all that colleges and universities have to offer,” said Acting Assistant Attorney General Gupta. “Under the ADA, universities like Quinnipiac cannot apply blanket policies that result in unnecessary exclusion of students with disabilities if reasonable modifications would permit continued participation; in many cases, such modifications can be as simple as allowing a student to complete coursework on a modified schedule.”
This matter was handled by Assistant U.S. Attorney Lisa Perkins of the District of Connecticut and Trial Attorney Nabina Sinha of the Disability Rights Section of the Justice Department’s Civil Rights Division.
The U.S. Attorney’s Office for the District of Connecticut has partnered with federal and state agencies and advocacy groups to form the Educational Opportunities Civil Rights Working Group to address civil rights violations by public and private educational institutions, afterschool programs, summer camps and day care centers. To contact the Working Group, please call 203-821-3836.
Additional information about the ADA can be found at www.ada.gov or by calling the Department’s toll-free information line at 800-514-0301 or 800-514-0383 (TTY).
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
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(203) 821-3722 [email protected]Jury Convicts Titusville Police Officer for Federal Drug CrimesRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Richard Irizarry (45, Viera) guilty of attempting to help distribute one kilogram of cocaine, and using a cellular telephone to commit a drug trafficking offense. He faces a maximum penalty of 40 years in federal prison. The sentencing hearing is scheduled for March 31, 2015.
According to testimony and evidence presented at trial, Irizarry joined the Titusville Police Department in 2010 as a sworn law enforcement officer. In the summer of 2013, he responded to an apartment complex and befriended a person, who, unbeknownst to Irizarry, was a DEA confidential informant. While at a New Year’s Eve party in 2013, Irizarry told the informant that he knew that he was a drug dealer, and that Irizarry wanted to get into the drug business with him to make money. On New Year’s Day, the informant reported the conversation to DEA, which immediately initiated an investigation.
On several occasions, Irizarry met with or called the informant, who recorded all of their meetings and telephone conversations. Irizarry often used his official police vehicle to meet the informant after his shift was over. On January 13, 2014, Irizarry looked up a license plate in a confidential database for the informant and identified it as belonging to an undercover DEA car. On another occasion, while on duty and in uniform, Irizarry parked his patrol car 50 feet away from the informant and an undercover agent that Irizarry believed was also a drug dealer. After listening to his police radio, Irizarry used his cellphone to tell the informant that it was safe to do a deal. Following that call, the informant handed the undercover agent what Irizarry believed was a kilogram of cocaine. For protecting the drug deal, the informant paid Irizarry $500.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Vincent A. Citro.
Joint Statement from the Justice Department and the Office of the Director of National Intelligence on the Declassification of Renewal of Collection Under Section 501 of the Foreign Intelligence Surveillance ActRead the Press Release
The Justice Department and the Office of the Director of National Intelligence released the following joint statement today:
On Dec. 8, 2014, the Director of National Intelligence declassified and disclosed publicly that the U.S. government had filed an application with the Foreign Intelligence Surveillance Court seeking renewal of the authority to collect telephony metadata in bulk, and that the FISC renewed that authority.
The FISC’s Dec. 4, 2014, primary order renewing the collection expires on Feb. 27, 2015. The DNI also announced that the administration was undertaking a declassification of the Dec. 4, 2014, primary order. Following this declassification review by the executive branch, the DNI has declassified and released in redacted form the Dec. 4, 2014, Primary Order signed by Judge Michael W. Mosman.
This order is now publicly available at the ODNI website, dni.gov, and the ODNI’s public website dedicated to fostering greater public visibility into the intelligence activities of the government, icontherecord.tumblr.com.
Insider iPad Thief ChargedRead the Press Release
BOSTON – The Director of Technical and Development Operations at a South Boston-based media technology company was charged today in connection with his alleged theft of nearly one million dollars’ worth of iPads and other Apple products from his employer.
Michael S. Denning, 33, of Peabody, was charged in an Information with mail fraud and filing false tax returns.
The Information alleges that in late 2010, Denning began working at a South Boston-based media technology company where his job responsibilities included purchasing computer equipment, software, and other technology-based products for use by employees. Shortly after he was hired, Denning began ordering extra Apple computer equipment, primarily iPads, from a wholesale computer vendor. Denning then intercepted these packages and sold them for cash, initially on eBay and Craigslist, and later to eBay resellers. Denning generated and submitted fraudulent invoices so that his company would pay the wholesale vendor. In doing so, Denning changed the description on the invoices so that they appeared to be for other items that he had legitimately purchased, such as software licenses, toner cartridges, computer monitors and other items. He also took measures to conceal the theft with the wholesale vendor, for instance by falsely noting that the iPads ordered were for “new hires.” By the end of 2013, Denning, who was promoted to Director of Technical and Development Operations, had ordered almost one million dollars of Apple computer equipment in this manner when only a handful of these products were legitimate purchases. Denning filed individual income tax returns that falsely listed his salary from as his employer as his only source of income.
The charge of mail fraud provides a statutory maximum sentence of 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gain or loss, whichever is greater. The charge of filing false tax returns provides a sentence of no greater than three years in prison, one year of supervised release, a fine of $250,000 or twice the gain or loss. 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; Shelly Binkowski, Inspector in Charge of the United States Postal Inspection Service; 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 Amy Harman Burkart of Ortiz’s Cybercrime Unit.
The details in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hutchinson Woman Pleads Guilty to False Tax Claim, Firearms ChargeRead the Press Release
WICHITA, KAN. - A Hutchinson woman pleaded guilty Monday to filing a false tax return and violating a federal law prohibiting her from having a gun, U.S. Attorney Barry Grissom said.
Rhonda J. Simmons, 40, Hutchinson, Kan., pleaded guilty to one count of presenting a false tax claim and one count of unlawful possession of a firearm after a felony conviction. In her plea, she admitted that on April 15, 2012, she prepared a false income tax return seeking a refund of $3,014.
On Aug. 14, 2012, the Hutchinson Police Department executed a search warrant on the residence where she was living in Hutchinson. They seized a 20 gauge shotgun belonging to Simmons. She was prohibited from possessing a firearm because she had been convicted of a felony in 2007 in Georgia.
Sentencing is set for March 30. She faces a maximum penalty of 10 years and a fine up to $250,000 on the firearm charge, and a maximum penalty of five years and a fine up to $250,000 on the tax charge.
Grissom commended the Internal Revenue Service and the Hutchinson Police Department for their work on the case.
Huntington man sentenced for distribution of oxymorphoneRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Joey Jamal Braggs, also known as “Fresh,” 30, of Huntington, West Virginia, was sentenced to 12 months and one day in federal prison.
Braggs pleaded guilty in September 2014, to selling oxymorphone to a confidential informant.
On July 25, 2014, Braggs met with and sold the informant 10 oxymorphone pills in exchange for $600. Braggs sold eight additional 40-mg oxymorphone pills to the informant through a middle man on July 28, 2014.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The investigation was conducted by the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Gregory McVey handled the prosecution of this case.
Huntington man pleads guilty to federal heroin chargeRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Thomas Edward Hill, 40, of Huntington, West Virginia, pleaded guilty to distributing heroin.
On May 21, 2014, officers utilized a confidential informant to arrange a heroin transaction through Clarence Edward House II, also known as “Nitty.” The informant contacted House and negotiated the purchase of 7.5 grams of heroin in exchange for $800. House and Hill later met with the informant in House’s vehicle, where Hill distributed the heroin to the informant at House’s direction.
House pleaded guilty to aiding and abetting the distribution a quantity of heroin on Dec. 8, 2014.
Hill faces up to 20 years in federal prison, and is scheduled to be sentenced on April 13, 2015.
Chief United States District Judge Robert. C. Chambers presided over the plea hearing.
The Federal Bureau of Investigation Drug Task Force conducted the investigation. Assistant United States Attorney Joseph Adams is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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.
Hamilton Man Sentenced to 195 Months for Bank Robbery, Owning Child PornographyRead the Press Release
CINCINNATI – Shane E. Bowlin, 39, of Hamilton, Ohio, was sentenced in U.S. District Court today to 195 months in prison for bank robbery, attempted bank robbery and possession of child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Steven Dettelbach, United States Attorney for the Northern District of Ohio, Barbara L. McQuade, United States Attorney for the Eastern District of Michigan, David J. Hickton, United States Attorney for the Western District of Pennsylvania, and John Barrios, Federal Bureau of Investigation (FBI) Acting Special Agent in Charge, Cincinnati Division, announced the sentenced handed down today by U.S. District Judge Timothy S. Black.
On or about June 20, 2013, Bowlin robbed a Fifth Third Bank in Lambertville, Mich. During that robbery he utilized a dangerous weapon. Later that month, he attempted to rob a Citizens Bank in Verona, Pa. and successfully robbed a PNC Bank in Cuyahoga Falls, Ohio. In July, he robbed the Delaware County Bank and Trust Company in Galena, Ohio.
In July, investigators discovered a large amount of cash in a hotel room occupied by Bowlin and in his vehicle. They also uncovered dye-stained money and disposable gloves tying him to the Lambertville robbery. During the search, officers also discovered approximately 1700 images and 55 videos depicting child pornography in a thumb drive and on a laptop computer.
Bowlin pleaded guilty to three counts of bank robbery, including the Michigan robbery which was originally filed in the Eastern District of Michigan and transferred to the Southern District of Ohio. He also pleaded guilty to one count of attempted bank robbery and possession of child pornography.Bowlin was also sentenced to 5 years supervised release with a lifetime of registration as a sexual offender.
U.S. Attorney Stewart commended the cooperative investigation by the FBI, Sharonville Police Department, Ohio Bureau of Criminal Investigation, Delaware County Sheriff’s Office, Cuyahoga Falls Police Department, Canal Fulton Police Department, Monroe County, Mich. Sheriff’s Office, and Penn Hills, Pa. Police Department, as well as Criminal Chief Kenneth L. Parker, who is representing the United States in this case.
Gila River Man Sentenced to 18 Years in Prison for MurderRead the Press Release
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WWW.JUSTICE.GOV/USAO/AZGILA RIVER MAN SENTENCED TO 18 YEARS IN PRISON FOR MURDER
PHOENIX – On Jan. 12, 2015, Christian Kisto Vela, 22, a member of the Gila River Indian Community, was sentenced by U.S. District Judge Diane Humetewa to 216 months in prison. Vela pleaded guilty on Oct. 14, 2014, to second degree murder.
On April 12, 2014, the defendant shot the victim to death outside a home in Bapchule, Arizona.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan and Melissa Karlen, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-14-00583-PHX-DJH
RELEASE NUMBER: 2015-04_Vela# # #
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.Fourth Man Enters Guilty Plea Relating to Large Sequoia National Forest Marijuana GrowRead the Press Release
FRESNO, Calif. — David Arreola Villareal, 29, of Michoacàn, Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land and possessing a firearm in furtherance of the conspiracy, U.S. Attorney Benjamin B. Wagner announced.
According to the plea agreement, Arreola and co-defendants Hernan Cortez‑Villaseñor, 40, Homero Pacheco-Rivera, 22, Alfonso Cornejo, 32, and Jose Luis García-Villa, 22, also of Michoacàn, Mexico, conspired to grow approximately 8,876 marijuana plants in the Greenhorn Creek area of the Sequoia National Forest in Kern County. Arreola possessed a 9 millimeter semi-automatic handgun when he was arrested at the grow site.
In pleading guilty, Arreola also agreed to compensate the U.S. Forest Service for the extensive damage to the land and natural resources caused by the cultivation. Native oak trees and other vegetation were cut down or otherwise killed to make room for the marijuana plants. The soil was tilled, and fertilizers and pesticides, including Fosfuro de Zinc, an illegal rat poison, were spread throughout the site. Fosfuro de Zinc contains zinc phosphide, a highly toxic chemical that can sicken or kill human beings. When Arreola was apprehended, he was sick and had to be air-lifted out of the grow site. According to Arreola, several other growers had previously left the site, because they were sick.
Arreola is scheduled for sentencing on March 23, 2015, before Senior U.S. District Judge Anthony W. Ishii. He faces a maximum prison sentence of five years for the drug conspiracy and a mandatory consecutive prison term of five years for the gun charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Cortez-Villaseñor, Cornejo, and García-Villa previously entered guilty pleas. Cortez-Villaseñor was sentenced to a 10-year prison term, while Cornejo and García-Villa were both sentenced to prison terms of three years and 10 months. Pacheco-Rivera is a fugitive.This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Environmental Protection Agency Criminal Investigation Division, and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.
Four Portland Residents Plead Guilty to $1 Million Tax Fraud SchemeRead the Press Release
Acting Deputy Assistant Attorney General Larry J. Wszalek for the Department of Justice’s Tax Division, U.S. Attorney S. Amanda Marshall for the District of Oregon and Chief Richard Weber for the Internal Revenue Service-Criminal Investigation (IRS-CI) announced that Jheraun Dunlap, Ernest Bagsby, Jermaine Moore and Brandi McCall pleaded guilty today to a $1 million federal tax refund fraud scheme.
Dunlap admitted to filing 208 false federal income tax returns with false wages, false withholding and false refundable credits that claimed a total of more than $1 million in fraudulent refunds. Dunlap filed false tax returns using the names and social security numbers of other individuals obtained directly and through Bagsby, Moore and McCall. Dunlap filed a number of false tax returns using identities stolen by co-defendant Carolyn Gallagher, who previously pleaded guilty to identity theft. Dunlap also used addresses obtained by Bagsby, Moore and McCall to receive stored-value debit cards loaded with fraudulent income tax refunds.
On Jan. 12, all four defendants pleaded guilty before Senior District Judge Robert E. Jones in the District of Oregon. Dunlap pleaded guilty to conspiracy to defraud the government, wire fraud and aggravated identity theft. Bagsby and Moore pleaded guilty to conspiracy to defraud the government, theft of government funds and aggravated identity theft. McCall pleaded guilty to conspiracy to defraud the government. All four defendants have agreed to pay full restitution to the U.S. Treasury in the amount of $427,896.
This case was investigated by the IRS-CI’s Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former USD Athletes Sentenced in IRS Fraud CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that two former University of South Dakota football players convicted of Conspiracy to Defraud the United States and Aggravated Identity Theft were sentenced on January 12, 2015, by U.S. District Judge Karen E. Schreier.
Alphonso Rico Valdez, age 23, of Nashville, Tennessee, was sentenced to 37 months in prison on the conspiracy charge, and 24 months on the ID theft charge, to be served consecutively. Upon release from prison he will be on supervised release for 3 years. Valdez was also ordered to make restitution to the Internal Revenue Service (IRS) in the amount of $421,116, and to two ID theft victims in the amount of $866.83.
Terry Daron Liggins, age 29, of Sioux Falls, South Dakota, was sentenced to 15 months in prison on the conspiracy charge, and 24 months on the ID theft charge, to be served consecutively. Upon release from prison he will be on supervised release for 3 years. Liggins was also ordered to make restitution to the IRS in the amount of $339,535, and to two ID theft victims in the amount of $866.83.
Valdez, Liggins, and 9 others were indicted on the above charges by a federal grand jury on May 8, 2013. Valdez and Liggins pled guilty on October 16, 2014.
Valdez and Liggins were involved in a scheme to defraud the United States by using personal identifying information, including names, Social Security numbers, and dates of birth, of other individuals to file bogus income tax returns showing tax refunds due. The requested refunds totaled approximately $1 million, and the IRS paid fraudulent claims of over $400,000 before the fraud came to light.
During his involvement in the scheme, Valdez had co-conspirators obtain identities, including names, Social Security numbers, and dates of birth. Valdez provided the stolen identities to other co-conspirators to be used to file fraudulent income tax returns with the IRS. Valdez also had co-conspirators provide him with addresses to use on the fraudulent income tax returns and, in turn, provided those addresses to other co-conspirators so that refund checks could be received in the mail. Valdez received fraudulent income tax refunds in the mail at the addresses he obtained/provided, and deposited the funds into his own bank accounts and those of his co-conspirators.
During Liggins’ involvement in the scheme, he sent a text message to a co-conspirator containing stolen identities, including names, Social Security numbers, and dates of birth, to be used to file fraudulent income tax returns with the IRS. He also provided a co-conspirator with addresses knowing that the addresses would be used in the scheme to receive fraudulent tax refunds in the mail.This case was investigated by the Vermillion Police Department, the South Dakota Division of Criminal Investigation, and the IRS Criminal Investigation Division. Assistant U.S. Attorney John E. Haak prosecuted the case.
Both men were ordered to surrender to the U.S. Marshals Service by noon on February 16, 2015.
Former Sandwich, Illinois Business Owner Pleads Guilty to Making A False Statement to A Financial InstitutionRead the Press Release
ROCKFORD — A former Sandwich, Ill. business owner pleaded guilty today before U.S. District Judge Frederick J. Kapala to a charge of making a false statement to a financial institution. The defendant, STEVEN J. MOORHOUSE, 62, was President and majority owner of Jefsco Manufacturing Co., Inc., a manufacturing business.
According to the plea agreement, during July 2009, Moorhouse sought a lender to make business loans to Jefsco and began to provide Jefsco’s financial information to Old Second National Bank (OSNB). The plea agreement further states that on Dec. 4, 2009, Moorhouse provided OSNB with a document that falsely inflated the value of the accounts receivable owed to Jefsco by hundreds of thousands of dollars. Moorhouse admitted he was aware that the amount of loan proceeds that OSNB would disburse would be, in part, determined by the amount of receivables.
Moorhouse faces a penalty of up to 30 years in prison, a term of supervised release of up to five years following imprisonment, a fine of up to $1 million, or twice the gross gain or gross loss resulting from that offense, whichever is greater. The Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution. Sentencing for Moorhouse is set for April 16, 2015, at 2:30 p.m.
The guilty plea was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Christy Romero, Special Inspector General for the Troubled Asset Relief Program; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation was conducted jointly by the Office of the Special Inspector General for the Troubled Asset Relief Program and the Federal Bureau of Investigation.
The government is represented by Assistant U.S. Attorney Michael D. Love.
Plea Agreement
Former Puerto Rico Police Officer Sentenced for Obstructing Civil Rights InvestigationRead the Press Release
Former Police of Puerto Rico Officer Angel Torres Quinones was sentenced today to serve 46 months in prison for obstructing the civil rights investigation into the fatal beating of Jose Luis Irizarry Perez, 19, announced Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division, U.S. Attorney Rosa Emilia Rodriguez-Velez for the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI San Juan Field Office.
Torres Quinones pleaded guilty to obstruction of justice for providing misleading information to the local Puerto Rico prosecutor who initially investigated the police-involved beating of Irizarry Perez. Five other former Puerto Rico police officers, who also pleaded guilty, are currently awaiting sentencing for their roles in the beating of Irizarry Perez and subsequent obstruction of the investigation. According to documents filed in connection with the guilty pleas, two former Puerto Rico police officers violated the constitutional rights of Irizarry Perez by striking him with their police batons while another former police officer physically restrained Irizarry Perez during an election evening celebration at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.
U.S. District Court Judge Juan M. Perez Gimenez issued the sentence, which will be followed by three years of supervised release. During the three-year term, the defendant will be under federal supervision, and risks additional prison time should he violate any terms of his supervised release.
“The department will continue to ensure that those who cover up civil rights violations are brought to justice,” said Acting Assistant Attorney General Gupta. “Like an officer who unnecessarily uses excessive force, a police officer who obstructs a civil rights investigation violates his oath to the people he serves.”
“Today’s sentencing brings a measure of justice to the family of Jose Luis Irizarry Perez,” said U.S. Attorney Rodriguez-Vélez. “The U.S. Attorney’s Office and its law enforcement partners will hold accountable those who abuse their power and official positions at the expense of constitutionally guaranteed civil rights.”
This case was investigated by the FBI’s San Juan Division and is being prosecuted by Senior Litigation Counsel Gerard Hogan and Trial Attorneys Shan Patel and Olimpia E. Michel of the Civil Rights Division and Assistant U.S. Attorney Jose A. Contreras for the District of Puerto Rico.
Former Prison Doctor Pleads Guilty to Schemes to Defraud the GovernmentRead the Press Release
PHILADELPHIA - Dennis Erik Fluck Von Kiel, 58, of New Tripoli, PA, pleaded guilty today to 17 counts stemming from his schemes to: defraud the IRS and the Department of Health and Human Services out of hundreds of thousands of dollars, get financial aid grants for his four eldest children, file false claims for social security disability insurance, and lie at a bankruptcy proceeding. Von Kiel is the former medical director of Lehigh County Prison. He pleaded guilty to conspiracy to defraud the United States, five counts of attempting to defeat or evade a federal tax, one count of attempting to obstruct the due administration of the internal revenue code, five counts of failure to file tax returns, one count of wire fraud and aiding and abetting wire fraud, one count of perjury in a bankruptcy proceeding, one count of financial aid fraud and aiding and abetting financial aid fraud, and two counts of mail fraud and attempted mail fraud. The plea agreement recommends a 41-month prison term. U.S. District Court Judge Jeffrey L. Schmehl will make the final determination on sentencing at a hearing scheduled for April 20, 2015.
Since 2001, Von Kiel has engaged in a series of illegal schemes which were designed to help him evade creditors, including the Department of Health and Human Services to whom Von Kiel owed hundreds of thousands of dollars in outstanding medical school loans. He tried to defraud the IRS in order to avoid paying more than $200,000 in duly-owed personal income taxes. Von Kiel also lied on applications to the Department of Education for financial student aid for four of his children, which enabled them to receive more than $36,000 in federal Pell Grants for their college educations. Von Kiel tried to file a fraudulent claim for social security disability benefits by falsely claiming that he suffered from post-traumatic stress disorder. He also intentional made a false statement under oath in a bankruptcy proceeding.
Von Kiel is a doctor of osteopathy whose medical practice included treating inmates at LCP from approximately March 1989 until approximately August 2013. Most of Von Kiel’s schemes involved him pretending to become a minister of a “church” called the International Academy of Lymphology (which later changed its name to the International Academy of Life and then the Christian Forum Assembly), purporting to take a “vow of poverty,” and then claiming that he had no taxable income because his earnings belonged to “church.” Von Kiel convinced his employer that he was exempt from federal tax withholdings and directed his employer to deposit his bi-weekly paychecks into bank accounts for his “church.” Once the money arrived in those accounts, co-conspirators would transfer nearly the same amount of money into Pennsylvania bank accounts controlled by Von Kiel. Von Kiel then used the money to pay for all of his family’s day-to-day living expenses and to buy some luxury items.
Von Kiel has been held without bail at the Federal Detention Center since his arrest on February 28, 2014. Von Kiel also faces up to three years of supervised release, restitution to the IRS in the amount of $256,920, $262,303.11 to the Department of Health and Human Services and $36,314 to the Department of Education, forfeiture of $165,988.29, a fine of up to $2,895,000, and a $1,700 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations, the FBI, and the Department of Education’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Mark B. Dubnoff.
Former Insurance Agent Sentenced for Stealing from His ClientsRead the Press Release
WICHITA, KAN. - A former insurance agent in Wichita was sentenced Monday to 42 months in federal prison for stealing from his clients, U.S. Attorney Barry Grissom said.
Jason Matthew Pennington, 43, Wichita, Kan., pleaded guilty to two counts of wire fraud and one count of attempted bank fraud. In his plea, he admitted the crimes occurred while he was an agent working for State Farm Insurance.
WIRE FRAUD (Count Two)
In 2000, Wendell and Marita Hill, who had purchased insurance policies from State Farm, became clients of Pennington after their former State Farm agent retired. In Nov. 2004, the Hills purchased a life insurance policy through Pennington valued at more than $3.4 million. The policy was issued by Phoenix Life Insurance Company, an insurance provider affiliated with State Farm Insurance.
In 2008, Pennington devised a scheme to defraud the Hills and Phoenix. On Feb. 29, 2008, he sent a fax to Phoenix Life Insurance Company requesting a loan of $105,000 on the Hills’ life insurance policy. The loan contained the forged signature of Brent Hill, who was trustee of the Hill Family Trust. Brent Hill did not make the request for the loan.
WIRE FRAUD: (Count Four)
In 2006, Marlene Brown, who had retired following a 37-year career with the Wichita Public Schools as a teacher, coach and school administrator, purchased a State Farm life insurance policy through Pennington. The policy was valued at $1.3 million.
In September 2009, Pennington contacted State Farm and changed the address for Marlene Brown’s insurance policy to his business address. He then sent a fax to State Farm making a withdrawal of $278,250 on the policy. Pennington forged Brown’s signature and requested the withdrawal without her knowledge.
When State Farm called him to ask why the money was to be sent to his office instead of Brown’s home, Pennington lied and told them Brown was his mother-in-law.
Marlene Brown died Oct. 27, 2009.
ATTEMPTED BANK FRAUD: (Count 45)
In February 2010, Pennington applied for a line of credit from State Farm Bank. In order to qualify for the credit, he did not report to the bank that he was required to pay $5,000 a month in child support and alimony to his first wife. He also falsely reported that his second wife was receiving an annual salary as an employee of his insurance office.
Grissom commended the FBI, IRS - Criminal Investigation Assistant U.S. Attorney Lanny Welch and Assistant U.S. Attorney Aaron Smith for their work on the case.
Former Fort Rucker Soldier Sentenced to Six Years in Daughter’s DeathRead the Press Release
Montgomery, Alabama - Benjamin Schrad, a former soldier stationed at Fort Rucker, was sentenced Friday, January 9, 2015, to six years in prison for manslaughter. Schrad’s sentence follows his conviction in federal court for the 2011 death of his four-year old daughter.
The sentence was announced by United States Attorney for the Middle District of Alabama, George L. Beck, Jr., who noted that the sentence was above the recommended sentencing range of 33-41 months set out in the Federal Sentencing Guidelines.
Schrad, 31, from Storm Lake, Iowa, was stationed and living in base housing at Fort Rucker when he rushed his daughter to an emergency room in Enterprise in August 2011, advising doctors that she had collapsed while they were playing at home. However, medical testimony at the trial established that the girl was violently shaken and that the injuries that caused her death could not have resulted from a mere fall.
“The U. S. Attorney’s Office is grateful that the judge in this case upwardly departed from the guidelines and sentenced the offender to 72 months,” stated U.S. Attorney George Beck. “This is a heartbreaking case involving the death of a child, and it is unfortunate that the Federal Sentencing Guidelines only allow for such a narrow sentencing range. A review of the current guidelines by the Sentencing Commission would be welcomed, followed by revisions that would ensure that the level of punishment could more adequately reflect the devastating nature of the crime.”
This case was investigated by the Federal Bureau of Investigation (FBI), the Army Criminal Investigative Division at Fort Rucker, and the Alabama Department of Forensic Sciences. The Birmingham Children’s Hospital also provided assistance in the investigation and trial of this case. This case was prosecuted by Assistant United States Attorneys Susan Redmond and Bob Anderson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Albany Resident Charged with Possessing Child PornographyRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Konrad P. Wolff, on Dec. 18, 2014, with one count of possessing child pornography, announced United States Attorney Melinda Haag and Federal Bureau of Investigation, Special Agent in Charge David J. Johnson.
According to the indictment, Wolff, 27, previously of Albany, Calif., is alleged to have knowingly possessed video and image files depicting minor and prepubescent children engaging in sexually explicit conduct. Wolff was arrested on Jan. 8, 2015, at Ft. Benning, Georgia, and made his initial appearance in federal court in Columbus, Ga., that same day. Wolff has been remanded to the custody of the U.S. Marshals Service and will be returned to the Northern District of California to answer the Indictment. His next appearance will be before the Honorable James Donato, United States District Court Judge, at a time to be determined.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years in prison and a fine of $250,000, for his alleged violation of 18 U.S.C. § 2252(a)(4)(B). 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.
Scott D. Joiner is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by the FBI and the University of California, Berkeley, Police Department.
Federal Grand Jury Criminal Indictments AnnouncedRead the Press Release
TULSA, Okla. — The results of the January 2015 Federal Grand Jury were announced today by Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged federal crimes which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.Roy James Hudson. Felon in Possession of Firearm and Ammunition, Possession of an Unregistered Weapon Made from a Shotgun, and Possession of an Unregistered Weapon Made from a Rifle. Hudson, 28, of Pryor, Oklahoma, is charged with possessing 13 firearms and various rounds of ammunition after prior felony convictions. The firearms include unregistered short-barreled weapons made from a shotgun and a rifle. If convicted, the minimum statutory penalty for possession of the firearms and ammunition after felony convictions is 15 years in prison and the maximum statutory penalty is life in prison. If convicted, the maximum penalty for possessing unregistered short-barreled weapons made from a shotgun and a rifle is 10 years in prison. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mayes County Sheriff’s Office, and the Pryor Police Department are the investigative agencies.
Mario Jimenez-Ramirez. Reentry of Removed Alien. Jimenez-Ramirez, 36, was arrested and is charged with having returned to the United States unlawfully after being deported in February 2009 near Del Rio, Texas. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigating agency.
Rene Marmolejo-Rodriguez. Reentry of Removed Alien. Marmolejo-Rodriguez, 32, was arrested and is charged with having returned to the United States unlawfully after being deported in November 2009 near San Ysidro, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigating agency.
Kelly Verd Nichols. Mail Fraud and Unlawful Monetary Transactions. Nichols, 46, of Sapulpa, Oklahoma, is charged with two counts of mail fraud and four counts of unlawful money transactions occurring between December 2009 and June 2010. If convicted, the statutory maximum penalty is not more than 20 years in prison for mail fraud and not more than 10 years in prison for unlawful monetary transactions. The indictment also contains forfeiture allegations which provide notice to the defendant that upon conviction he also faces entry of a forfeiture money judgment in the amount of $267,000. The Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation are the investigating agencies.
Beto Romero-Lozada. Reentry of Removed Alien. Romero-Lozada, 43, was arrested and is charged with having returned to the United States unlawfully after being deported in April 2007 near San Ysidro, California. If convicted, the statutory maximum penalty is 20 years in prison and a $250,000 fine. The U.S. Immigration and Customs Enforcement is the investigating agency.
Jacob Dane Young and Jamie Lee King. Drug Conspiracy, Possession of Marijuana with Intent to Distribute and Possession of Firearms in Furtherance of a Drug Trafficking Crime. Young, 24, and King, 23, both of Tulsa, are charged with possessing marijuana with intent to distribute and conspiring to distribute marijuana. Upon conviction, the defendants face entry of a criminal forfeiture money judgment representing proceeds obtained as a result of the drug conspiracy and any property used to facilitate the drug offenses. Both defendants are also charged with possessing 15 firearms in furtherance of a drug trafficking crime. King is additionally charged with possessing a machine gun in furtherance of a drug trafficking crime. If convicted, the statutory maximum penalty for possessing marijuana with intent to distribute and conspiracy is five years in prison. If convicted, the statutory minimum penalty for possessing firearms in furtherance of a drug trafficking crime is five years in prison and the statutory maximum penalty is life in prison. If convicted, the statutory minimum penalty for possessing a machine gun in furtherance of a drug trafficking crime is 30 years in prison and the statutory maximum penalty is life in prison. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency.
Father and Son Plead 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 Gregory Magness, 66, of Polk, PA, pleaded guilty to conspiracy to smuggle and conspiracy to commit money laundering before Chief U.S. District Judge William M. Skretny. The charges carry a maximum penalty of 10 years, and a $250,000 fine. In addition, Magness’ son Justin, 36, of Oil City, PA, pleaded guilty to aiding and abetting in the presentation of a false document to Custom and Border Protection officers. The charge carries a maximum penalty of one year in prison and a $100,000 fine.
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated the Gregory Mangess was the president of Superior Metal Powders, Inc. and Justin Magness served as vice-president. The company was in the business of supplying specialty metal powders which included magnesium and magnesium reagent. Between 2003 and 2006, Superior Metal Powders had an agreement to provide the ESM Group Inc. with pure magnesium powder. ESM then sold the magnesium powder to Kilgore Flares Inc. which used the magnesium to produce countermeasure flares for the United States Department of Defense.
Gregory and Justin Magness bought the magnesium that was supplied to ESM from William Nehill which was imported from China. At the time of the importations, the United States had a 305.56% antidumping duty in place with respect to the type of magnesium powder the defendants were importing through Nehill. In order to avoid the antidumping duty, the defendants mixed the pure magnesium with chunks of aluminum and falsely labeled it as magnesium reagent. By doing so, the duty imposed on the shipments was only 5%. The mislabeling resulted in a $6,000,000 duty loss to the United States. During one such import in 2004, Justin Magness aided William Nehill in preparing false documents that were provided to and relied on by customs resulting in a lower duty cost.
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. Gregory and Justin Magness, as well as defendants Nehill and Wright have all been convicted. Charges are pending against Eldon Bott. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The pleas are 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, Acting 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.
Gregory and Justin Magness will be sentenced on May 13, 2015 at 9:00 a.m. by Judge Skretny.
Eight sentenced for trafficking heroin, other drugsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistEight sentenced for trafficking heroin, other drugs
MARTINSBURG, WEST VIRGINIA – Eight individuals were sentenced in federal court today for distributing heroin and other drugs, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the Federal Bureau of Investigation, the Potomac Highlands Drug and Violent Crimes Task Force, and Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, revealed a drug distribution network in which heroin transported from Baltimore, Maryland and oxycodone were sold within the Northern District of West Virginia. Six individuals were sentenced for their role in the drug trafficking operation, including:
• Stephanie Lee Butts, 38, of Petersburg, West Virginia, was sentenced to 115 months in prison after she was discovered in possession of heroin in January 2014. She pled guilty in September 2014 to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.”
• Christian Nicole Pierce, 22, was sentenced to 46 months in prison for her role in selling heroin as part of the larger distribution network. She pled guilty in September 2014 to one count of “Drug Conspiracy – Heroin.”
• Brenda Michelle Sams, 35, of Brandywine, Maryland was sentenced to 21 months in prison for her role in selling heroin as part of the larger distribution network. She pled guilty in October 2014 to one count of “Drug Conspiracy – Heroin.”
• Brandy Netz, 30, of Martinsburg, West Virginia, was sentenced to 10 months in prison for selling heroin in April 2014. She pled guilty in October 2014 to one count of “Aiding and Abetting Distribution of Heroin.”
• Crystalin Nicole Holliday, 24, of Martinsburg, West Virginia was sentenced to three years of probation months in prison for selling heroin in April 2014. She pled guilty in September 2014 to one count of “Aiding and Abetting Distribution of Heroin.”
• Thomas Richard Greenfield, Jr., 58, of Martinsburg, West Virginia, was sentenced to three years of probation for selling oxycodone in April 2014. He pled guilty in September 2014 to one count of “Aiding and Abetting Distribution of Oxycodone.”In another matter, Derwin Lee Harris, 48, of Harrisburg, Pennsylvania, was sentenced to 12 months in prison for his role in a conspiracy to distribute heroin and cocaine in July 2013. He pled guilty in October 2014 to one count of “Drug Conspiracy” following an investigation by the Martinsburg Police Department.
Additionally, Darrell Sherwood Logan, 57, of Martinsburg, West Virginia, was sentenced to time served since September 2014 for selling crack cocaine. He pled guilty in September 2014 to one count of “Aiding and Abetting Distribution of Cocaine Base” following an investigation by the Eastern Panhandle Drug and Violent Crimes Task Force.
Assistant U.S. Attorney Jarod Douglas prosecuted the cases on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Doctor and Pharmacist Charged Distributing 1.6 Million Doses of OxycodoneRead the Press Release
HOUSTON – Richard Arthur Evans, M.D., 70, and David D. Devido, R.Ph., 76, both of Houston, have been charged in a 24-count indictment alleging a conspiracy to commit distribution of controlled substances, mail fraud, health care fraud and money laundering, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Joseph Arabit of the Drug Enforcement Administration (DEA) and Special Agent in Charge Lucy Cruz of Internal Revenue Service – Criminal Investigation (IRS-CI).
The indictment was returned under seal Wednesday, Jan. 7, 2015. Both men surrendered to federal authorities this morning at which time the indictment was unsealed.
Evans and Devido are charged with conspiring to distribute the prescription drugs oxycodone and hydrocodone, both highly addictive and highly abused pain relievers. Both drugs are semi-synthetic opiates which can be only acquired legally by prescription and dispensed by a pharmacist. As a physician, Evans wrote prescriptions and Devido dispensed the drugs, according to the indictment.
The indictment alleges both men distributed these drugs outside the course of professional practice and not for a legitimate medical purpose. Evans allegedly saw patients from Louisiana and other states, prescribed oxycodone products and directed patients to Briargrove Pharmacy in Houston. Devido had previously owned the pharmacy until it was sold recently.
The indictment further alleges Evans charged patients $200-$240 in cash for an initial office visit at which time the patient would obtain their first prescription. Refills are not permitted for these narcotics. Patients were allegedly told they could obtain a second prescription in 30 days without an office visit and a third in another 30 days as long as the patient sent a money order to Evans for $200-$240 on each occasion for “office visits.”
The indictment alleges Evans and his staff would deliver the prescription to Devido at Briargrove Pharmacy. Devido and his staff at Briargrove Pharmacy would allegedly send these drugs through the U.S. mail and FedEx to patients in Louisiana and other states.
The indictment alleges Evans prescribed and Devido dispensed approximately 1.6 million dosage units of oxycodone in a three-year-period.
Both defendants are charged with one count of conspiracy to distribute narcotics which carries a maximum penalty of five years in federal prison. They also face six counts of distribution of controlled substances and eight counts of mail fraud, all of which carry a possible 20-year-prison term. Devido is also charged with four counts of health care fraud and faces another 20 years for each conviction, while Evans faces five counts of money laundering, each carrying another 10 years of federal imprisonment. All charges also carry a possible $250,000 fine, upon conviction.
The investigation was conducted jointly by the DEA, IRS-CI, U.S. Postal Inspection Service, U.S. Department of Health and Human Services and the Texas State Board of Pharmacy. Assistant U.S. Attorney Cedric L. Joubert is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Detroit man sentenced for felony possession of firearm, supervised release revocationRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced today that Keival Lewis Kelley, also known as “Swell,” 31, of Huntington, West Virginia, was sentenced to 70 months in federal prison for being a felon in possession of a firearm and 24 months for a supervised release revocation.
Kelley pleaded guilty in December 2014, to being a felon in possession of a firearm.
On July 2, 2014, Kelley was arrested in Huntington on a federal warrant for heroin trafficking. At the time of his arrest he was found to be in possession of a loaded Taurus .25-caliber semi-automatic pistol. He had previously been convicted of crack distribution in the Southern District of West Virginia, and was serving a term of supervised release when arrested.
Chief United States District Judge Robert C. Chambers imposed the sentence.
The investigation was conducted by the Huntington Violent Crime and Drug Task Force. Assistant United States Attorney Joshua Hanks handled the prosecution of this case.
The case is being prosecuted as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a commitment of U.S. Attorney Goodwin’s office and other officials nationwide to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Davidsonville Man Sentenced to 8 Years in Prison for Distributing Heroin and Oxycodone and Illegally Possessing A Pipe BombRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Benjamin K. Bray, age 30, of Davidsonville, Maryland, to eight years in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin and oxycodone and to being a felon in possession of an explosive device.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; and Chief Marc S. Bashoor of the Prince George’s County Fire/EMS.
According to his plea agreement, from at least January 2011 through December 2012, Bray conspired with John Frank Jenkins and others to distribute oxycodone. Bray and his co-conspirators presented forged prescriptions for oxycodone pills to different pharmacies approximately twice a week from the spring of 2011 through the summer of 2012. Bray and his co-conspirators consumed some of the pills and sold the rest. During the conspiracy, Bray began to use and distribute heroin as a cheaper substitute for the oxycodone, selling heroin to pay for the heroin he used.In November 2012, Jenkins refused to sell oxycodone to one of his drug customers, resulting in an argument. After the argument, Jenkins built two pipe bombs which he intended to use to blow up the drug customer’s vehicle. Bray supplied the black powder for the pipe bombs.
Another drug customer owed Jenkins $50 for oxycodone that Jenkins had supplied in June 2012. On December 18, 2012, Bray and Jenkins were out of heroin and needed money to purchase heroin. Jenkins contacted the customer, but could not collect the debt. Bray and Jenkins carried one of the pipe bombs to the customer’s home. Bray placed the pipe bomb on the front porch and lit the fuse. The bomb exploded, damaging the front door. The drug customer was sleeping in the bedroom adjacent to the door at the time of the explosion.
John Frank Jenkins, age 31, of College Park, Maryland was previously sentenced to 121 months in prison followed by 14 months of home detention as part of three years of supervised release, for conspiracy to distribute and possess with intent to distribute heroin and oxycodone; and to 10 years in prison for making an explosive device and being a felon in possession of an explosive device. The sentences are to be served concurrently. Judge Grimm also ordered Jenkins to pay restitution of $475.
United States Attorney Rod J. Rosenstein praised the ATF, Prince George’s County Police Department and Prince George’s County Fire/EMS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Deborah A. Johnston and Leah J. Bressack, who prosecuted the case.
Connecticut Investment Advisor Sentenced to 40 Months in Federal Prison for Cherry-picking SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NOAH L. MYERS, 43, of Lyme, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 40 months of imprisonment, followed by three years of supervised release, for defrauding investment clients in a “cherry-picking” securities scheme. MYERS also was ordered to perform 150 hours of community service.
“Investors have a right to the fair and ethical management of their savings,” stated U.S. Attorney Daly. “The sentence imposed today serves as ample warning that money managers who breach their clients trust in violation of federal securities laws will be prosecuted and risk losing their freedom and ill-gotten gains. We thank the FBI and the SEC for their efforts in uncovering this cherry-picking scheme.”
“Cherry-picking” is a fraudulent securities trading practice in which the responsible individual executes trades without assigning those trades to a particular trading account until the individual determines whether or not the trade has become profitable or suffered losses. The responsible individual then allocates the profitable trades to favored accounts – often the individual’s own account – and assigns unprofitable trades to disfavored client accounts.
According to court documents and statements made in court, MYERS was the sole owner of MiddleCove Capital, LLC (“MiddleCove”), a Connecticut limited liability company with its principal place of business in the Centerbrook section of Essex. MiddleCove had been registered with the U.S. Securities and Exchange Commission (“SEC”) as an investment adviser since 2008, and MYERS was the portfolio manager and managed a number of client accounts with assets of approximately $129 million. MiddleCove used Charles Schwab & Co., Inc. (“Schwab”) to trade securities and as the custodian of the investments held in client accounts. As part of the trading arrangement with Schwab, MYERS was permitted to place block purchases and sales of securities through a master account with Schwab and then, later in the day, allocate the purchases and sales to various accounts, including his personal accounts and various client accounts, all held by Schwab.
Between April 2009 and November 2010, MYERS engaged in “cherry-picking” at MiddleCove by purchasing the leveraged exchange traded fund (ETF) ProShares UltraShort Financials, otherwise known by its ticker symbol “SKF,” as well as other securities. MYERS then disproportionately allocated trades that had appreciated in value during the course of the day to his personal and business accounts and allocated trades that had depreciated in value during the day to the accounts of his advisory clients. As a result, MYERS gained as his clients suffered commensurate trading losses.
For example, in August 2009, on the nine days when MYERS purchased SKF in block trades in the master account and the security was sold as a day trade, MYERS allocated between 9 percent and 32 percent of the profitable block trades to his personal accounts. On three of those days he allocated between 27 percent and 31 percent of the profitable day trades to his personal accounts.
In addition, on September 2, 2009, MYERS purchased SKF in a block trade in the master account and, after the investment increased in value, sold the shares in a day trade and allocated more than 31 percent of the investment to his personal accounts. In sharp contrast, MYERS undertook four additional block purchases in the master account of SKF on September 3, 4, 16 and 28, 2009. On each of these days, when the SKF investment declined in value by the close of trading, MYERS allocated no more than 5 percent of the block trade to his personal accounts and instead allocated the remaining 95 percent of the shares to his clients’ accounts.
In filings with the SEC in April 2009 and March 2010, MYERS and MiddleCove represented that batched trades would be allocated fairly and not unduly favor MYERS or MiddleCove.
On January 16, 2013, the SEC issued an order revoking the registration of MiddleCove as an investment adviser and barred MYERS from the securities industry. MYERS also was ordered to pay $462,022 disgorgement, $26,096 in prejudgment interest, and a civil penalty of $300,000.
On October 20, 2014, MYERS waived his right to indictment and pleaded guilty to one count of security fraud.
This matter was investigated by the Federal Bureau of Investigation with the substantial assistance of the U.S. Securities and Exchange Commission. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.Citizens are encouraged to report any financial fraud schemes by calling, toll free, 855-236-9740, or by sending an email to [email protected].
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(203) 821-3722 [email protected]Citizens of Benin, Africa Sentenced to Time Served for Fraud Related ChargesRead the Press Release
United States Attorney Deborah R. Gilg announced that the Honorable Laurie Smith Camp, Chief United States District Court Judge sentenced Cossi Deguenon and Micheline Bolarywa to time served after they pled guilty to fraud related charges.
Cossi Deguenon and Micheline Bolarywa are citizens of Benin, Africa and had come to the United States on student visas. Deguenon came in 2006 and Bolarywa came in 2008. Deguenon married a United States Citizen in 2011 and subsequent to that marriage he applied for a green card based on his new status as the spouse of a citizen. When United States Citizen and Immigration Services processed his application they determined the marriage was entered into fraudulently and was a sham. In fact, in 2009, Cossi Deguenon and Micheline Bolarywa applied for and received a marriage license in Douglas County. Federal agents served a search warrant at Deguenon’s residence and found wedding pictures of Cossi Deguenon and Micheline Bolarywa from 2009. During the investigation it was learned that Micheline Bolarywa had been employed at Remington Lodging and Hospitality, a Marriott Corporation, and that when she applied for the job, affirmed that she was a United States citizen when in fact she wasn’t.
Cossi Deguenon pled guilty to marriage fraud and served 9 days in jail. Micheline Bolarywa pled guilty to making a false statement under oath and served 6 days. Both Cossi Deguenon and Micheline Bolarywa are being deported to Benin.
The case was investigated by the United States Citizen and Immigration and Services and Homeland Security Investigations.
Chief Compliance Officer of WG Trading Company, LP, Sentenced in Manhattan Federal Court for Several Hundred Million-Dollar Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DEBORAH DUFFY, the former Chief Compliance Officer of WG Trading Company, LP (“WG Trading”), was sentenced in Manhattan federal court to time served in prison for conspiracy, securities fraud, and money laundering. DUFFY maintained the books and records for WG Trading, a fraudulent commodities trading and investment advisory scheme run by principals Stephen Walsh and Paul Greenwood, which raised billions of dollars, misappropriated hundreds of millions of those dollars for their own personal benefit, and then created false promissory notes and account statements to conceal their theft. DUFFY pled guilty on July 21, 2009, and was sentenced on January 8, 2015, by United States District Judge Naomi Reice Buchwald.
Manhattan U.S. Attorney Preet Bharara said: “Deborah Duffy abdicated her oversight responsibility at WG Trading, enabling Walsh and Greenwood to perpetuate their massive investment fraud scheme. But she not only admitted her conduct, she assisted the government’s investigation. Her sentence today reflects both her acknowledgment of her guilt and the value of her cooperation.”
According to the Information, other documents filed in Manhattan federal court, and statements made during court proceedings:
From at least 1996 through February 2009, Walsh and Greenwood solicited $7.6 billion in investor funds on the understanding that they would invest the funds in a program called “equity index arbitrage,” which they represented was a conservative trading strategy that had outperformed the results of the S&P 500 Index for more than ten years. As a result, several institutional investors – including charitable and university foundations, retirement and pension plans, and other institutions – invested billions of dollars. Contrary to their representations to investors, Walsh and Greenwood misappropriated hundreds of millions of dollars in investor funds for their own personal use and to satisfy obligations on investments that were unrelated to the “equity index arbitrage” trading business. Walsh and Greenwood executed promissory notes to, among other things, conceal trading losses and their misappropriation of investor funds. These promissory notes totaled approximately $554 million, and these notes materially misstated the financial condition of WG Trading and misled investors. Walsh and Greenwood also created and caused others to create false account statements that were sent to clients to reflect fictitious returns consistent with the returns that had been promised to those clients.
During this time period, DUFFY was the Chief Compliance Officer of WG Trading. Among other duties, she maintained the books and records of WG Trading, communicated with WG Trading’s regulators and auditors, and prepared and maintained the promissory notes signed by Walsh and Greenwood.
In addition time served, DUFFY, 59, of Mahwah, New Jersey, was sentenced to one year of supervised release and ordered to forfeit $1,272,841. The Court further ordered restitution to be paid by DUFFY in an amount to be determined.
Walsh pled guilty on April 25, 2014, and was sentenced on October 29, 2014, by United States District Judge Miriam Goldman Cedarbaum to 20 years in prison. Greenwood pled guilty on July 28, 2010, and was sentenced on December 3, 2014, by Judge Cedarbaum to 10 years in prison.
Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Securities and Exchange Commission, the United States Commodity Futures Trading Commission, and the National Futures Association, for their assistance.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jessica A. Masella is in charge of the prosecution.
Chesapeake Woman Sentenced for Conspiracy to Commit Wire Fraud and Identity TheftRead the Press Release
NORFOLK, Va. – Shavika Thompson, age 36, of Chesapeake was sentenced yesterday to 41 months in prison for conspiracy to commit wire fraud and a consecutive sentence of 24 months for aggravated identity theft. Thompson was also ordered to pay restitution in the amount of $99,875.97.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after sentencing by Senior United States District Judge Robert G. Doumar.
Thompson pled guilty to the charge on September 4, 2014. According to court documents, Thompson and co-conspirator, Sheila Clark Lewis, acquired identity information without authorization from Thompson’s employer, a telephone messaging service that catered to medical offices. In many cases, they used the information to establish store credit card accounts at K-Mart, Sears, and Kohl’s department stores. At various times between November 2012 and September 2013, they made purchases using the victims’ accounts. The identity victims included elderly medical patients. Surveillance videos showed that Thompson and Lewis were often together at the time of a purchase or attempted purchase. Over the course of about one year, they purchased or attempted to purchase nearly $100,000 in merchandise. Both defendants were under supervised release during the time of the offenses. Both had been previously prosecuted by the Norfolk office.
This case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Randy Stoker prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-88.Buffalo Man Sentenced on Drug ChargesRead the Press Release
CONTACT: BARBARA BURNS
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Gregory Pendziwiatr, 46, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute and to distribute fentanyl, was sentenced to 15 months in prison by U.S. District Judge Richard J. Arcara.Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that Pendziwiatr and co-defendant Mary Moran sold prescription fentanyl patches to another co-defendant, Barbara Moran. Co-defendant Barbara Moran sold the fentanyl patches to others in the City of Buffalo including a third co-defendant Jordan Warunek.
Jordan Warunek and Mary Moran were also convicted of conspiracy to possess with intent to distribute and distribute fentanyl and were sentenced to two years probation and one year in prison respectively. Barbara Moran will be sentenced by Judge Arcara on February 2, 2105.
“Narcotics which are trafficked illegally do not always originate from outside the country, or Western New York,” said U.S. Attorney Hochul. “Sometimes, persons with valid medical prescriptions choose to become nothing more than neighborhood drug dealers by selling that which a doctor intended for their benefit. This Office will prosecute any who would poison the community by trafficking in addictive or deadly substances such as fentanyl, regardless of how the person acquires the product.”
The sentencing is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Cheektowaga Police Department, under the direction of Chief David Zach.
Brian Murphy Sentenced to 45 Months in Prison for Conspiracy to Commit Mail and Wire Fraud Through Benchmark Capital Ponzi SchemeRead the Press Release
KNOXVILLE, Tenn. - Brian Murphy, 43, of Knoxville, Tenn., was sentenced on January 8, 2015, to serve 45 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge. Murphy was also ordered to pay $18 million in restitution to the victims in the case.
Murphy pleaded guilty in August 2014, to a federal indictment charging him with conspiracy to commit mail and wire fraud. The indictment arose out of Murphy’s participation with Joyce Allen and the late Charles Candler in the operation of a business known as Benchmark Capital, which was discovered to be a Ponzi scheme that financially ruined many of its hundreds of victims. Candler, Allen, Murphy and others vouched for the soundness of investment annuities they sold when in fact they were worthless.
The indictment and subsequent conviction of Murphy was the result of a three-year investigation conducted by the Internal Revenue Service, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant U.S. Attorneys Frank Dale and Jennifer Kolman represented the United States.
Bedford County Man Pleads Guilty to Trafficking in Counterfeit Pro Sports Team ApparelRead the Press Release
JOHNSTOWN, Pa. - A resident of Everett, Pa., pleaded guilty in federal court to a charge of trafficking in counterfeit goods, United States Attorney David J. Hickton announced today.
John F. Crawford, IV, 48, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Oct. 25, 2012, Crawford trafficked in various counterfeit National Football League, National Hockey League and Major League Baseball logo apparel.
Judge Gibson scheduled sentencing for May 12, 2015, at 10 a.m. The law provides for a total sentence of 10 years in prison, a fine of $2,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Crawford on $5,000 bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security-Homeland Security Investigations conducted the investigation that led to the prosecution of Crawford.