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Wednesday 5 November 2014
Grand Jury Returns Indictment Charging Man with Five Bank, Credit Union Robberies in February and March 2014Read the Press Release
SALT LAKE CITY - A federal grand jury returned an indictment Wednesday afternoon charging Michael Alexander Bacon, age 45, of Salt Lake City, with five bank and credit union robberies in Salt Lake City, West Valley City, and North Salt Lake between Feb. 3 and March 24, 2014.
The indictment charges Bacon with a Feb. 3, 2014, robbery of Zions Bank in North Salt Lake; a Feb. 19, 2014, robbery of Mountain America Credit Union in Salt Lake City; a March 21, 2014, robbery of Zions Bank in West Valley City; and March 24, 2014, robberies of U.S. Bank and Chase Bank, both in Salt Lake City.
Bacon was arrested a few days after the last two bank robberies when a Salt Lake City police officer saw the defendant at a shopping center and recognized him as the suspect from the bank robberies. The officer approached the defendant and ordered him to stop. Bacon did not follow the command and fled on foot into a nearby store. Officers pursued him and apprehended him.
The potential maximum penalty for each count of bank robbery is 20 years in federal prison and a $250,000 fine. Bacon is in state custody on other charges and is scheduled to go to trial in early December. Federal prosecutors will schedule an initial appearance for Bacon in federal court once the state case has been resolved.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
Gibson City Man Convicted of Mail Fraud and Tax EvasionRead the Press Release
Peoria, Ill. – Sentencing is scheduled on Feb. 19, 2015, for a Gibson City, Ill., man convicted last week of mail fraud and illegal application of a pesticide inconsistent with its labeling. A jury deliberated for approximately one hour on Oct. 31, before returning guilty verdicts against Carl Kieser, 61. Kieser had previously been convicted of four counts of tax evasion.
Kieser owned and operated Aquatic Control of Illinois, a business located at his Gibson City Fishing and Camping Club, south of Gibson City on Route 47. During the trial, which began on Oct. 27, the government presented evidence to establish that from June 2006 to September 2012, Kieser purchased large quantities of Diuron 80DF, a pesticide registered with the U.S. Environmental Protection Agency for the control of land-based weeds. The EPA-approved labeling for Diuron 80DF warns that the chemical should not be applied directly to water due to its toxicity to fish and other aquatic wildlife.
As part of the scheme to defraud, Kieser manufactured, advertised, sold, and distributed a product he called Pond Clear Plus. Kieser produced Pond Clear Plus by mixing Diuron 80DF with other ingredients, including a blue pond dye. Kieser advertised Pond Clear Plus in newspapers and magazines and represented that he had 20 years of experience in lake management and consulting. The advertisements for Pond Clear Plus falsely and fraudulently represented that Pond Clear Plus could control lake weeds and algae “Mother Nature’s Way,” with “No Chemicals,” using a “biological method with live bacteria that dissolves plant nutrients, black muck, and rotten egg odor.” Kieser also falsely and fraudulently represented to customers that Pond Clear Plus contained no chemicals. In fact, as Kieser knew full well, Pond Clear Plus contained the chemical pesticide Diuron 80DF, which was prohibited by its EPA-approved labeling from being applied directly to water.As a result of his false advertising and representations, Kieser sold and distributed Pond Clear Plus to customers from approximately July 2007 to September 2012. Kieser obtained more than $400,000 in proceeds from customers from the sale of Pond Clear Plus, but failed to pay any federal income tax on his profits from 2008 to 2011.
As a further part of the scheme, Kieser provided Pond Clear Plus to his customers via Federal Express or some other means in 2.5 gallon jugs without any labels, including any labels informing customers that Pond Clear Plus contained Diuron 80DF and should not be applied directly to water. To the contrary, Kieser advised customers that Pond Clear Plus contained no chemicals and should be applied by pouring it directly into the customer’s pond or lake. Moreover, Kieser himself on occasion directly applied Pond Clear Plus to lakes or ponds for his customers. As a result, Diuron 80DF was directly applied to ponds and lakes throughout the United States in direct contravention of its EPA-approved labeling. Additionally, multiple customers experienced fish kills following the application of Pond Clear Plus to their ponds and lakes.“The guilty verdict is the result of strong coordination between EPA and our law enforcement partners,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Illinois. “Mail fraud is a serious crime that can lead to serious public health threats. This case demonstrates that individuals who profit from the misuse and illegal sale of potentially harmful chemicals will be prosecuted.”
Following the jury’s return of the guilty verdicts, Chief U.S. District Judge James E. Shadid allowed Kieser to remain on release under conditions of bond, including that he no longer sell his product, Pond Clear Plus. Judge Shadid scheduled sentencing for Kieser on all charges for February 19, 2015.
The maximum statutory penalty for each count of mail fraud is 20 years in prison and a fine of up to $250,000. The maximum statutory penalty for tax evasion is five years in prison and a fine of up to $100,000. The maximum statutory penalty for applying a pesticide inconsistent with its labeling is one year in jail and a fine of up to $50,000.
The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges are the result of an investigation by the U.S. Environmental Protection Agency, Criminal Investigation Division, and the Internal Revenue Service, with the assistance of the Illinois Department of Natural Resources, the Illinois Environmental Protection Agency, and the Illinois Department of Agriculture.
Gang Member and Robber Sentenced in Manhattan Federal Court to 25 Years on Racketeering, Robbery, Narcotics, and Firearms ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RUDY MENDOZA, 29, was sentenced today in Manhattan federal court to 25 years in prison for racketeering conspiracy, narcotics conspiracy, robbery conspiracy, and firearms charges. MENDOZA was convicted after a nine-day trial in November 2013. The Honorable Colleen McMahon imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Within months of being released from state prison, Rudy Mendoza rejoined the Los Vagos street gang and attempted to participate in an armed robbery. Multi-agency cooperation and coordination, including the effective use of an ATF undercover agent, ensured that a violent criminal was prevented from causing harm and has been held accountable for the full scope of his crimes.”
In September 2011, a few months after being released from state prison in March 2011, MENDOZA and five other members of a Bronx-based robbery crew were arrested as part of an undercover investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) in connection with a plan to conduct an armed robbery of cocaine dealers. MENDOZA and three of his co-conspirators who were arrested on their way to the planned robbery each possessed a loaded handgun.
At the time of MENDOZA’s arrest in the robbery case, he had already been identified in a separate investigation by the Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”) as a member of the Los Vagos street gang, a criminal organization comprising Mexican and Mexican-American members based primarily in East Harlem. Wiretapped telephone calls in the HSI case revealed that the handgun the ATF seized from MENDOZA belonged to the Los Vagos gang.
In November 2011, MENDOZA and 11 other members and associates of the Los Vagos gang were charged with racketeering conspiracy, murder conspiracy, firearms, and narcotics offenses.
The evidence at trial revealed MENDOZA’s active participation in the robbery crew, and the inner workings of the Los Vagos gang. Shortly before he expected to commit the robbery, MENDOZA assured the ATF undercover agent that he was prepared to violently assault the drug dealers his crew planned to rob. Former Los Vagos gang members testified about MENDOZA’s role in the gang, which included supplying cocaine for the leader of the gang to resell. The former gang members also described the full scope of the Los Vagos gang’s criminal activities, including acts of violence such as beatings, stabbings, and shootings, to protect their members from rival gangs, including the Latin Kings, and to dissuade rival gangs from encroaching on their territory. The gang also extorted or robbed individuals who lived or worked in their territory, and collected dues from members in order to buy firearms and to assist gang members who had been incarcerated or who wished to return to the United States from Mexico illegally.
With MENDOZA’s conviction at trial, all six charged members of the robbery crew and all twelve charged members and associates of the Los Vagos gang have been convicted.
Mr. Bharara praised the outstanding investigative work of the ATF, HSI, and the New York City Police Department. He also thanked the New York County District Attorney’s Office for their assistance.
The prosecution of the cases is being overseen by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Amie N. Ely and Amy Lester are in charge of the prosecution.
Four Men Indicted in Separate Cases of Child Exploitation, Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that five men have been indicted by a federal grand jury, in separate and unrelated cases, for offenses involving child sexual exploitation and child pornography.
USA v. Crippen
James Allen Crippen, 43, of Joplin, Mo., was charged in a two-count indictment returned today by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Crippen received and distributed child pornography over the Internet on July 20, 2014. Crippen is also charged with possessing child pornography on Oct. 22, 2014. The indictment contains a forfeiture count, which would require Crippen to forfeit to the government any property used to commit the alleged offenses, including two desktop computers, an iPhone, two cell phones, 42 optical media disks and other electronic media storage devices.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Southwest Missouri Cybercrimes Task Force, the FBI and the Joplin, Mo., Police Department.
USA v. Norman
Chase Trevor Norman, 24, of Cassville, Mo., was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Nov. 4, 2014. The indictment replaces a federal criminal complaint that was filed against Norman on Oct. 15,2014.
The indictment alleges that Norman used a minor to produce child pornography between Sept. 21 and Oct. 10, 2014. The indictment also charges Norman with two counts of using the Internet and a cell phone to induce a minor to engage in illicit sexual activity.
According to an affidavit filed in support of the original criminal complaint, Norman used an iPod app to send obscene photos of himself to a 12-year-old child, and requested and received nude images of the child victim. Norman allegedly was making arrangements to meet the child for sexual contact. The child victim told investigators that she met Norman on Facebook; she sent him a friend request, the affidavit says, because she assumed he was friends with one of her friends. A law enforcement officer assumed the identity of the child victim, according to the affidavit, and made arrangements to meet Norman in the parking lot of a local church for the purpose of taking the child back to his apartment to engage in sexual activities. Norman was arrested as he approached the meeting location.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI).
USA v. Albert
David Albert, 50, of Springfield, Mo., was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Nov. 4, 2014. The federal indictment alleges that Albert attempted to use a minor to produce child pornography between Aug. 1 and Oct. 2, 2014. Albert is also charged with receiving and distributing child pornography over the Internet between Jan. 1 and Oct. 2, 2014.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Springfield, Mo., Police Department.
USA v. Schaefer
Darren Eugene Schaefer, 36, of Marionville, Mo., was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Nov. 4, 2014. The federal indictment alleges that Schaefer used the Internet and a cell phone to induce a minor to engage in illicit sexual activity.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cybercrimes Task Force, Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the FBI.
USA v. Grant
Sheehan R. Grant, 37, of Iowa, was charged in an indictment returned by a federal grand jury in Springfield, Mo., on Tuesday, Nov. 4, 2014. The federal indictment alleges that Grant traveled across state lines from Cedar Rapids, Iowa, to Joplin, Mo., on Oct. 16, 2014, for the purpose of engaging in illicit sex with a minor.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force and Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI).
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Four Former East Tennessee Law Enforcement Officers and One Current Officer Indicted for ExtortionRead the Press Release
KNOXVILLE, Tenn. - On Nov. 4, 2014, a federal grand jury returned a two-count indictment against Robert E. Cummings, 61, of Knox County, a former University of Tennessee Police Officer; Jimmy W. Douglas, 43, of Knox County, a former deputy sheriff for Knox County Sheriff’s Office; Samuel T. Hardy, Jr., 42, of Knox County, a former deputy sheriff for Knox County Sheriff’s Office; and Benito D. Lopez 62, of Knox County, a former TVA Police Officer. Also, indicted was David L. Joyner, 44, of Sevier County, a detective with the Pigeon Forge Police Department.
The indictment on file with the U.S. District Court charges Cummings, Douglas, Hardy, Joyner and Lopez each with two counts of violating the Hobbs Act. Count One charges conspiracy to commit extortion under color of official right. Count Two charges attempt to commit extortion under color of official right. Under color of official right, a public official obtains a payment to which he or she is not entitled, believing that the money is being given to him or her in return for taking, withholding, or influencing official action. If convicted, each faces a maximum of 20 years in prison and a $250,000 fine on each count.
On Nov. 5, 2014, former Knox County Deputy Robbie D. Flood, pleaded guilty to an information charging him with a violation of the Hobbs Act.
This indictment is the result of an investigation conducted by the Federal Bureau of Investigation, Tennessee Valley Authority - Office of Inspector General, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Jeffrey Theodore represents the United States case.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
Former Youth Counselor Sentenced to Seven Years in Prison for Possession and Distribution of Child PornographyRead the Press Release
EUGENE, Ore. – On November 5, 2014, Michael Shane Olson, 46 years, of Lebanon, Oregon, was sentenced by U.S. District Chief Judge Ann Aiken to seven years in federal prison for possessing and distributing child pornography. After serving his sentence, Olson will be on lifetime supervised release.
In August and September 2010, several FBI online undercover investigations around the country revealed that Olson was utilizing a peer-to-peer website to share and download hundreds of child pornography images. On April 27, 2011, FBI agents executed a search warrant at Olson’s residence in Lebanon, Oregon and seized computer equipment and storage devices that contained additional images and videos of child pornography. Olson was thereafter federally indicted for distribution and possession of child pornography and, on June 12, 2014, he pled guilty to all five counts of the Indictment.
Prior to his offense conduct in this case, Olson had worked in Oregon as a residential counselor for at-risk youth.
This case was investigated by the FBI and the Linn County Sheriff’s Office, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Former Community Health Clinic CFO Indicted for Scheme to Defraud Millions from GovernmentRead the Press Release
BIRMINGHAM -- Federal agents today arrested the former financial officer of two non-profit health clinics for the poor and homeless on multiple charges related to a scheme to defraud millions of dollars from the clinics and the federal government health agencies that provide most of their funding.
TERRI McGUIRE MOLLICA, 48, of Birmingham, was arrested on an 82-count indictment returned by a federal grand jury last week. The indictment charges Mollica with wire fraud, mail fraud, money laundering, aggravated identity theft and filing false income tax returns. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr., IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office Special Agent in Charge Derrick L. Jackson announced the charges after a judge unsealed the indictment following Mollica's arrest.Mollica was the chief financial officer of Birmingham Health Care from April 2005 through November 2008. She also performed fiscal duties for Central Alabama Comprehensive Health Inc., a non-profit clinic in Tuskegee intended to provide primary and preventative health care to people in east Alabama, regardless of their ability to pay. BHC's chief executive officer, identified in the indictment by the initials J.D., served for a time as the chief executive officer of the Tuskegee clinic and, in 2008, BHC took over fiscal responsibility of CACH.
The indictment charges that between January 2008 and March 2012, Mollica aided and abetted J.D. and others in diverting about $11 million in federal grant money, assets and property of BHC and CACH to private entities created by J.D. Mollica then conducted financial transactions to transfer money from the private entities to herself, J.D. and others, according to the indictment. It charges that she illegally received about $1.7 million through the scheme.
"Federal funds meant to provide healthcare to the poor and the homeless are not a moneybox for criminals," Vance said. "My office will vigorously prosecute health care fraud, working to ensure these funds go to the people they are intended to help, and that criminals go to jail."
"If you are stealing tax dollars to line your own pockets, you should be looking over your shoulder," Schwein said. "The FBI and our partner agencies are right behind you, ready to hold you to account and make you answer for your crimes.""Today's arrest demonstrates that individuals who engage in corrupt behavior will be held accountable for their actions," Hyman-Pillot said. "The allegations against Terri Mollica and others are deplorable. This is a classic example of abusing power while in a position of trust. These individuals made a profit by defrauding the government and will be brought to justice," she said.
"It's both unconscionable and illegal when scammers defraud federal grant programs designed to assist those in need and then pocket the funding to enrich themselves, as Terri Mollica is accused of doing," Jackson said. "Such greed-fueled fraud cheats both taxpayers and those in need, but our hardworking investigators and law enforcement partners are committed to making sure that such fraudsters are held accountable for their actions," he said.
BHC began receiving grants from the Health Resources and Human Services Administration, an arm of the U.S. Department of Health and Human Services, more than 20 years ago. Federal grants administered by HRSA and HHS constitute the overwhelming majority of BHC and CACH funding.Mollica and others misrepresented and concealed information from HRSA to ensure the agency would continue to grant money to the Birmingham and Tuskegee community health clinics, according to the indictment.
J.D. incorporated numerous private companies using "Synergy" in the name. He also incorporated Integrated Health Systems of Alabama in 2006 and later reconstituted it as Integrated Health Systems Alliance in July 2008. In late 2008, J.D. left his position as CEO at BHC "purportedly to operate" his private companies, according to the indictment. In October 2008, Mollica became the chief financial officer of Synergy Medical Solutions. She also served as CFO of IHSA, and had access to the financial accounts of the other Synergy entities, the indictment says.
Mollica faces 21 wire fraud counts for interstate wire transfers between November 2009 and June 2011. The transfers were from a Wachovia Bank account for one of the Synergy entities or from a BHC account at Regions Bank to Mollica, or to accounts she controlled.
Mollica faces 34 mail fraud counts for mailing checks drawn on a BHC account at Regions Bank and mailed to a Birmingham post office box that she controlled, or drawn on one of the Synergy accounts and mailed to out-of-state post office boxes for E-Trade or Wells Fargo. Most of the checks from the Synergy accounts were for more than $20,000.
Mollica faces 13 money-laundering counts for taking money obtained through either the wire or the mail fraud and, in an attempt to disguise the source of the money, depositing it into a Wells Fargo Bank account she owned. All the cashier's checks listed in money laundering counts 56 through 68 were deposited between August 2011 and March 2012, involved amounts less than $6,000, and were made payable to "Loan Trans - Wells Fargo."
Mollica faces six other money-laundering counts charging she used criminally derived funds of more than $10,000 in transactions with a financial institution. The indictment lists four $25,000 transactions between November 2010 and May 2012, and one $30,000 transaction in March 2012.
Mollica faces five counts of filing false federal income tax returns for the calendar years 2008 through 2012, charging her with not reporting $1.7 million received through the scheme to defraud the government. According to the indictment, she owes the IRS more $500,000 for those tax years.
Separate from the scheme to defraud the government and the community health clinics, Mollica faces two mail fraud counts and an aggravated identity theft count in a scheme to defraud Globe Life and Accident Insurance Company. According to the indictment, Mollica took out a life insurance policy on her brother-in-law, but stated the insured was her brother. When the man died, Mollica sent letters to the insurance company demanding payment and submitted an amended death certificate bearing a forged signature of the certifying physician.
The indictment seeks to have Mollica forfeit to the government more than $900,000 seized from financial accounts in her name, as well as any money held in stock trading accounts in the name of three separate minor children, and a money judgment for the total amount involved in the fraud scheme.
The maximum penalties for the offenses charged are as follows:
• mail and wire fraud, 20 years in prison and a $250,000 fine;
• money laundering (counts 56-68), 20 years in prison and a $500,000 fine, or twice the value of the property involved;
• money laundering (counts 69-74) involving criminally derived property valued at more than $10,000, 10 years in prison and a $250,000 fine;
• aggravated identity theft, mandatory two years in prison added to any sentence imposed for the underlying felony and a $250,000 fine;
• filing a false tax return, three years in prison and a $100,000 fine.The FBI, IRS and HHS-OIG investigated the case. Assistant U.S. Attorneys Tamarra Matthews Johnson and Melissa Kay Atwood are prosecuting the case.
Former Community Health Clinic CFO Indicted for Scheme to Defraud Millions from GovernmentRead the Press Release
BIRMINGHAM -- Federal agents today arrested the former financial officer of two non-profit health clinics for the poor and homeless on multiple charges related to a scheme to defraud millions of dollars from the clinics and the federal government health agencies that provide most of their funding.
TERRI McGUIRE MOLLICA, 48, of Birmingham, was arrested on an 82-count indictment returned by a federal grand jury last week. The indictment charges Mollica with wire fraud, mail fraud, money laundering, aggravated identity theft and filing false income tax returns. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr., IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Regional Office Special Agent in Charge Derrick L. Jackson announced the charges after a judge unsealed the indictment following Mollica's arrest.Mollica was the chief financial officer of Birmingham Health Care from April 2005 through November 2008. She also performed fiscal duties for Central Alabama Comprehensive Health Inc., a non-profit clinic in Tuskegee intended to provide primary and preventative health care to people in east Alabama, regardless of their ability to pay. BHC's chief executive officer, identified in the indictment by the initials J.D., served for a time as the chief executive officer of the Tuskegee clinic and, in 2008, BHC took over fiscal responsibility of CACH.
The indictment charges that between January 2008 and March 2012, Mollica aided and abetted J.D. and others in diverting about $11 million in federal grant money, assets and property of BHC and CACH to private entities created by J.D. Mollica then conducted financial transactions to transfer money from the private entities to herself, J.D. and others, according to the indictment. It charges that she illegally received about $1.7 million through the scheme.
"Federal funds meant to provide healthcare to the poor and the homeless are not a moneybox for criminals," Vance said. "My office will vigorously prosecute health care fraud, working to ensure these funds go to the people they are intended to help, and that criminals go to jail."
"If you are stealing tax dollars to line your own pockets, you should be looking over your shoulder," Schwein said. "The FBI and our partner agencies are right behind you, ready to hold you to account and make you answer for your crimes.""Today's arrest demonstrates that individuals who engage in corrupt behavior will be held accountable for their actions," Hyman-Pillot said. "The allegations against Terri Mollica and others are deplorable. This is a classic example of abusing power while in a position of trust. These individuals made a profit by defrauding the government and will be brought to justice," she said.
"It's both unconscionable and illegal when scammers defraud federal grant programs designed to assist those in need and then pocket the funding to enrich themselves, as Terri Mollica is accused of doing," Jackson said. "Such greed-fueled fraud cheats both taxpayers and those in need, but our hardworking investigators and law enforcement partners are committed to making sure that such fraudsters are held accountable for their actions," he said.
BHC began receiving grants from the Health Resources and Human Services Administration, an arm of the U.S. Department of Health and Human Services, more than 20 years ago. Federal grants administered by HRSA and HHS constitute the overwhelming majority of BHC and CACH funding.Mollica and others misrepresented and concealed information from HRSA to ensure the agency would continue to grant money to the Birmingham and Tuskegee community health clinics, according to the indictment.
J.D. incorporated numerous private companies using "Synergy" in the name. He also incorporated Integrated Health Systems of Alabama in 2006 and later reconstituted it as Integrated Health Systems Alliance in July 2008. In late 2008, J.D. left his position as CEO at BHC "purportedly to operate" his private companies, according to the indictment. In October 2008, Mollica became the chief financial officer of Synergy Medical Solutions. She also served as CFO of IHSA, and had access to the financial accounts of the other Synergy entities, the indictment says.
Mollica faces 21 wire fraud counts for interstate wire transfers between November 2009 and June 2011. The transfers were from a Wachovia Bank account for one of the Synergy entities or from a BHC account at Regions Bank to Mollica, or to accounts she controlled.
Mollica faces 34 mail fraud counts for mailing checks drawn on a BHC account at Regions Bank and mailed to a Birmingham post office box that she controlled, or drawn on one of the Synergy accounts and mailed to out-of-state post office boxes for E-Trade or Wells Fargo. Most of the checks from the Synergy accounts were for more than $20,000.
Mollica faces 13 money-laundering counts for taking money obtained through either the wire or the mail fraud and, in an attempt to disguise the source of the money, depositing it into a Wells Fargo Bank account she owned. All the cashier's checks listed in money laundering counts 56 through 68 were deposited between August 2011 and March 2012, involved amounts less than $6,000, and were made payable to "Loan Trans - Wells Fargo."
Mollica faces six other money-laundering counts charging she used criminally derived funds of more than $10,000 in transactions with a financial institution. The indictment lists four $25,000 transactions between November 2010 and May 2012, and one $30,000 transaction in March 2012.
Mollica faces five counts of filing false federal income tax returns for the calendar years 2008 through 2012, charging her with not reporting $1.7 million received through the scheme to defraud the government. According to the indictment, she owes the IRS more $500,000 for those tax years.
Separate from the scheme to defraud the government and the community health clinics, Mollica faces two mail fraud counts and an aggravated identity theft count in a scheme to defraud Globe Life and Accident Insurance Company. According to the indictment, Mollica took out a life insurance policy on her brother-in-law, but stated the insured was her brother. When the man died, Mollica sent letters to the insurance company demanding payment and submitted an amended death certificate bearing a forged signature of the certifying physician.
The indictment seeks to have Mollica forfeit to the government more than $900,000 seized from financial accounts in her name, as well as any money held in stock trading accounts in the name of three separate minor children, and a money judgment for the total amount involved in the fraud scheme.
The maximum penalties for the offenses charged are as follows:
• mail and wire fraud, 20 years in prison and a $250,000 fine;
• money laundering (counts 56-68), 20 years in prison and a $500,000 fine, or twice the value of the property involved;
• money laundering (counts 69-74) involving criminally derived property valued at more than $10,000, 10 years in prison and a $250,000 fine;
• aggravated identity theft, mandatory two years in prison added to any sentence imposed for the underlying felony and a $250,000 fine;
• filing a false tax return, three years in prison and a $100,000 fine.The FBI, IRS and HHS-OIG investigated the case. Assistant U.S. Attorneys Tamarra Matthews Johnson and Melissa Kay Atwood are prosecuting the case.
Former CFO Pleads Guilty to Embezzling over $900,000 from Non-Profit EmployerRead the Press Release
SAN FRANCISCO – Robert Bradley Strahan, a/k/a Robin Bradley, a/k/a Kaola Bradley, pleaded guilty on Nov. 3 2014, to wire fraud, mail fraud, and tax evasion, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.
In pleading guilty, Strahan admitted to embezzling more than $920,000 from a non-profit trade association in San Francisco where he worked as the chief financial officer. Strahan’s responsibilities included bookkeeping, payroll, and accounting. As the CFO, he had complete control over and access to the association’s books, records, and bank accounts. Without the knowledge or authorization of the non-profit trade association, Strahan wrote and cashed checks payable to himself and to “Cash” totaling over $550,000; he used the association’s credit cards to make unauthorized purchases totaling over $250,000; and he put an acquaintance on the payroll who received over $120,000 but did almost no work. To conceal the money that he embezzled, Strahan made false entries in the association’s accounting systems as well as emailing false financial statements to the board of directors that omitted the funds he was taking for his personal use. Finally, Strahan did not pay income taxes on any of the money he embezzled for calendar years 2009 through 2013, resulting in tax due and owing of over $175,000.
Strahan, 51, of San Francisco, was charged by superseding indictment on Aug. 7, 2014, with three counts of wire fraud, two counts of mail fraud, and two counts of tax evasion. Under the plea agreement, Strahan pleaded guilty to two counts of wire fraud, one count of mail fraud, and one count of tax evasion. Strahan was arrested on May 30, 2014, and has remained in custody since then.
Strahan’s sentencing hearing is scheduled for Feb. 9, 2015, before the Honorable Thelton E. Henderson, United States District Court Judge, in San Francisco.
The maximum statutory penalty for each count of wire fraud, in violation of 18 U.S.C § 1343, is 20 years imprisonment and a fine of $250,000. The maximum statutory penalty for each count of mail fraud, in violation of 18 U.S.C § 1341, is 20 years imprisonment and a fine of $250,000. The maximum penalty for tax evasion, in violation of Title 26 U.S.C. § 7201, is five years in prison and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result an investigation by the FBI and the IRS, Criminal Investigation.
(Strahan superseding indictment )
Former CEO of Luggage Manufacturer Sentenced in Manhattan Federal Court to Three Years in Prison for Multimillion-Dollar Bank Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MARVIN JEMAL, the former Chief Executive Officer of a Manhattan-based company that designed, imported and distributed luggage, business bags, backpacks, and accessories (the “Company”), was sentenced today to three years in prison for orchestrating and carrying out a scheme to fraudulently obtain millions of dollars in loans from a commercial bank. To secure the loans, JEMAL and others made false statements and submitted false and phony documents to the bank. JEMAL pled guilty in August 2014 before U.S. District Judge Valerie E. Caproni, who imposed today’s sentence.
According to the Indictment, other documents filed in Manhattan federal court, and statements made at court proceedings:
From 2007 through October 2009, MARVIN JEMAL and Mark Bernstein, the former CEO and CFO, respectively, of the Company, engaged in a scheme to fraudulently induce a commercial bank based in New York (the “Bank”) to lend millions of dollars to the Company. Among other things, JEMAL and Bernstein knowingly made false representations to the Bank, concealed material facts from the Bank, and submitted false and fraudulent documents to the Bank, including fabricated invoices and shipping documents. In total, the Company obtained approximately $6.9 million in loans from the Bank and defaulted on over $6 million of those loans. Nearly $2.0 million in loans were obtained through the submission of fraudulent information. Moreover, although the loans were purportedly for the benefit of the Company’s business, JEMAL diverted approximately $1.9 million of the loan proceeds to personal bank accounts and used the money to pay for various personal expenses, including mortgage payments on properties he owned, credit card bills, and payments on his Porsche.
The Factoring Agreement
The Company obtained the loans from the Bank as part of a secured credit facility, pursuant to a factoring agreement between the Company and the Bank. Under the terms of the factoring agreement, the Company would assign and sell the Company’s interest in its accounts receivable to the Bank and, in exchange, the Company could borrow from the Bank up to 85% of the value of those receivables. In addition, the Company could borrow up to 50% of the value of its inventory. In order to draw down on its secured credit facility, however, the Company was required to provide the Bank with, among other things, an accurate listing of all accounts receivable, as well as supporting documentation, including copies of (i) relevant underlying invoices and (ii) shipping documents or other proof of delivery.
The Scheme to Obtain Loans Fraudulently
To obtain loans from the Bank fraudulently under the factoring agreement, JEMAL and Bernstein made false statements and submitted false and fraudulent documents to the Bank, including the following:
- JEMAL and Bernstein sent duplicate and/or fabricated invoices to the Bank that purported to reflect the sale of certain products by the Company and, thus, an outstanding receivable for the Company. In truth, however, the sales reflected on those invoices were false, as those sales either had never occurred or had already been invoiced separately.
- JEMAL and Bernstein provided fraudulent shipping documents to the Bank to substantiate the purported sales of products by reflecting that those products had been shipped to customers. In truth, however, those shipping documents were false and fraudulent, as the products had not, in fact, been shipped to the customers as reflected in the shipping documents.
- JEMAL and Bernstein concealed material facts from the Bank, including credits that the Company had provided to certain of its customers (which thereby reduced the total accounts receivable associated with those customers) and instances in which the Company had directly collected and deposited payments from its customers on the same invoices the Company assigned to the Bank.
- JEMAL and Bernstein provided inaccurate monthly inventory spreadsheets to the Bank which overstated the Company’s existing inventory.
Further, in order to conceal the scheme, JEMAL made various oral misrepresentations to certain representatives of the Bank when those representatives confronted him about irregularities and other issues that the Bank had discovered with respect to the Company’s assignment of its accounts receivable.
In addition to the prison sentence, JEMAL, 61, of Brooklyn, New York, was ordered to pay $2,729,422.71 in restitution to the Bank and to forfeit $2,729,422.71 in criminal proceeds.
Bernstein, 64, of Belle Harbor, New York, pled guilty in October 2013 before U.S. District Judge Robert P. Patterson for his role in the scheme and is scheduled to be sentenced on January 15, 2015.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Daniel S. Noble is in charge of the prosecution.
Five Charged in Steroid Distribution RingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging the owner of a Morgantown, West Virginia gym and four others with operating a steroid distribution network, United States Attorney William J. Ihlenfeld, II, announced today.
The indictment stems from an investigation by the United States Postal Service, the Food and Drug Administration, the Mon Valley Drug and Violent Crime Task Force, and the U.S. Drug Enforcement Administration into Carl R. Benedict, 49, of Morgantown, West Virginia.
As the owner of Club 24 Fitness, Benedict allegedly manufactured, processed, packaged, and sold compounds of Human Growth Hormone and Anabolic Steroids through the internet using materials procured from China. Benedict allegedly worked in collaboration with his associates Richard J. Pinelli, Jr., 27, of Mifflintown, Pennsylvania, Joseph B. Greco, 27, of New Castle, Pennsylvania, Derek S. Starn, 33, of Bridgeport, West Virginia, and Anthony F. DiDomenico, III, 28, of Morgantown, West Virginia.
The five defendants are each charged with one count of “Conspiracy to Distribute Human Growth Hormone,” for which they each face up to five years in prison and a fine of up to $250,000.00, one count of “Conspiracy to Distribute Anabolic Steroids,” for which they each face up to 10 years in prison and a fine of up to $500,000.00, and one count of “Conspiracy to Launder Money Instruments,” for which they each face up to 20 years in prison and a fine of up to $500,000.00.
Greco is further charged with one count of “Smuggling,” for which he faces up to 20 years in prison and a fine of up to $500,000.00, and one count of “Possession with Intent to Distribute Human Growth Hormone,” for which he faces up to five years in prison and a fine of up to $250,000.00.
DiDomenico is further charged with one count of “Mailing of Controlled Substances,” for which he faces up to one year in prison and a fine of up to $250,000.00, one count of “Possession with Intent to Distribute Anabolic Steroids,” for which he faces up to 10 years in prison and a fine of up to $500,000.00, one count of “Possession with Intent to Distribute Human Growth Hormone,” for which he faces up to five years in prison and a fine of up to $250,000.00, and one count of “Maintaining a Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00.
Pinelli is further charged with one count of “Possession with Intent to Distribute Anabolic Steroids,” for which he faces up to 10 years in prison and a fine of up to $500,000.00, one count of “Possession with Intent to Distribute Human Growth Hormone,” for which he faces up to five years in prison and a fine of up to $250,000.00, and one count of “Maintaining a Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00.
Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Inmate Sentenced for Possessing A ShankRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that a federal inmate pled guilty and was sentenced in federal court in Beckley for possessing a dangerous weapon. Desmel Cooper, 32, an inmate at the Federal Correctional Institution at Beckley, admitted that on July 1, 2014 he possessed a shank, a handcrafted prison weapon, at the prison. United States Magistrate Judge R. Clarke VanDervort sentenced Cooper to one year in prison, to be served consecutively to the sentence he is now serving. The case was investigated by the Federal Bureau of Prisons and was prosecuted by Assistant United States Attorney John File.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following:
Interstate Transportation of Stolen Merchandise
Sharon Donetta Fennell, age 46, of Lake City, South Carolina was charged in a 1-count indictment with transporting stolen merchandise in interstate commerce through the U.S. Postal Service, in violation of Title 18, U. S. C. §2314. The maximum penalty Fennell could receive is 10 years imprisonment and a maximum fine of $250,000.00. The case was investigated by agents of the United States Postal Inspection Service and Florence County Sheriff's Office and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Embarcadero Technologies and CA Inc. Terminate Proposed Transfer of CA Inc.'s ERwin Data ModelerRead the Press Release
Embarcadero Technologies Inc. and CA Inc. this week terminated Embarcadero’s proposed acquisition of CA Inc.’s ERwin data modeling product suite after the Department of Justice expressed continuing concern about the transaction’s potential for anticompetitive effects.
Data modeling software is used to view and streamline enterprise data, centralize data management and reduce data redundancies. An increase in the price of data modeling products would likely result in significant harm to users of these tools, the department said.
According to the department, Embarcadero’s ER Studio products and CA’s ERwin have been particularly close competitors. By purchasing the ERwin Data Modeler, Embarcadero Technologies would have eliminated a vigorous competitor that has competed to provide expanded functionality and more affordable pricing in recent years.
Embarcadero Technologies Inc., based in San Francisco, California, is owned by private equity group Thoma Cressey Bravo and provides software to build, test, optimize, and manage application infrastructure and databases for large corporations and government agencies. CA Inc., based in Islandia, New York, provides software and other tools for managing networks, databases, applications, storage, security, and other systems.
Elkins Man Charged with Painkiller DistributionRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – A federal grand jury returned an indictment today charging Jonathan Paul Calain, 34, of Elkins, West Virginia, with conspiring to distribute painkillers.
The indictment stems from an investigation led by the United States Forest Service which revealed that Calain repeatedly sold oxycodone pills to various individuals over an extended period of time.
Calain is charged with one count of “Conspiracy to Distribute Oxycodone,” for which he faces up to 20 years in prison and a fine of up to $1,000,000.00. He is also charged with one count of “Maintaining a Drug-Involved Premises,” for which he faces up to 20 years in prison and a fine of up to $500,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Eight Kansas Hunters Charged with Violating Migratory Bird ActRead the Press Release
WICHITA, KAN. – Eight Kansas hunters were charged in federal court here Tuesday with violating the Migratory Bird Treaty Act, U.S. Attorney Barry Grissom said.
A criminal complaint alleged the men violated the federal law protecting migratory birds when they participated in an annual opening weekend dove hunt in Graham County, Kan., on Sept. 1-2, 2013.
The Migratory Bird Treaty Act classifies mourning doves as migratory game birds. It classifies owls as migratory non-game birds. Restrictions on hunting mourning doves include a daily bag limit of 15 and a possession limit of twice the daily bag limit.
Charged are:
Daniel R. Dinkel, 63, Hill City, Kan., one count of exceeding the daily bag limit for mourning doves.
Kent A. Webber, 52, Derby, Kan., one count of exceeding the daily bag limit for mourning doves, and one count of taking an owl.
Evan Webber, 25, Derby, Kan., one count of exceeding the daily bag limit for mourning doves, and one count of taking an owl.
George Morgan, 52, Gordonville, Texas, one count of exceeding the daily bag limit for mourning doves.
Kenneth R. Beran, 67, Derby, Kan., one count of exceeding the daily bag limit for mourning doves.
Clark Law, 57, Hill City, Kan., one count of exceeding the daily bag limit for mourning doves.
Tracy D. Higgins, 54, El Dorado, Kan., one count of exceeding the daily bag limit for mourning doves, and one count of taking an owl.
John Kobler, 62, Topeka, Kan., one count of exceeding the daily bag limit for mourning doves.If convicted, the defendants face a maximum penalty of six months in prison on each count and a fine up to $15,000. The U.S. Fish and Wildlife Service investigated. Assistant U.S. Attorney Matt Treaster is prosecuting.
Detroit-Area Man Arrested in Connection with Home Health Care Fraud SchemeRead the Press Release
A Detroit-area resident was arrested today for his role in a $2.7 million home health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Javed Akhtar, 47, of Brownstown, Michigan, was arrested pursuant to a criminal complaint charging him with participating in a health care fraud scheme involving two home health agencies in Wayne, Michigan: Life Choice Home Health Care LLC (Life Choice), which he owned, and Angle’s Touch Home Health Care LLC (Angle’s Touch). Both Life Choice and Angle’s Touch purported to provide in-home health care services to Medicare beneficiaries.
According to the complaint, Akhtar served as a patient recruiter for Angle’s Touch and Life Choice, where he allegedly paid kickbacks to Medicare beneficiaries in exchange for their Medicare beneficiary information and their signatures on false medical records. The complaint alleges that Angle’s Touch and Life Choice then billed Medicare for services purportedly provided to those beneficiaries that were not actually provided, were not medically necessary, or in instances where the claims were illegally procured through the payment of kickbacks.
The charges contained in a complaint are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and HHS-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 Eastern District of Michigan. This case is being prosecuted by Trial Attorney Niall M. O’Donnell of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are 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.
Detroit to West Virginia Painkiller Distribution Network DismantledRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Brian Schultz, the leader of a prescription painkiller and cocaine distribution ring, was convicted today in federal court, United States Attorney William J. Ihlenfeld, II, announced today.
The U.S. Drug Enforcement Administration and the Ohio Valley Drug and Violent Crime Task Force, a HIDTA-funded initiative, led a sixteen month investigation leveraging sophisticated surveillance techniques to uncover a painkiller and cocaine distribution network led by Schultz, also known as “Worm.” He procured large quantities of prescription pills from groups in Detroit, Michigan and Northern Ohio. Schultz then orchestrated a series of associates to redistribute the pills in Northern West Virginia and Belmont County, Ohio.
Schultz, 38, of Triadelphia, West Virginia, admitted his role in distributing oxycodone, cocaine, and buprenorphine. He pled guilty to one count of “Conspiracy to Distribute Schedule II and Schedule III Controlled Substances.”
Schultz faces up to 20 years in prison and a fine of up to $1,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Schultz has two prior federal felony convictions. Schultz will also forfeit approximately $70,000.00 in cash and will be ordered to pay a money judgment of $30,000.00.
Fourteen others were convicted as part of the Schultz case, including Katherine Hungerman, Dustin Namack, Derick Namack, Steven Namack, Jill West, also known as Jill Namack, Christopher Howard, Buddy Salem, Kristyn Fetcko, Michael Coppa, Cara Olako, Richard Hercules, Jr., Lucas N. High, Adam Barnes, and Jordan Sorge.
Assistant U.S. Attorney John Parr is prosecuting the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
Dallas Man Sentenced to 384 Months in Federal Prison for Committing Armed Robbery of Several Local BusinessesRead the Press Release
DALLAS — A man who admitted committing several armed robberies of businesses last year in Dallas, including a gas station, a package store and convenience stores, was sentenced last week by U.S. District Judge Barbara M. G. Lynn, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Jeremy Jermal Bonner, 25, of Dallas, was sentenced to 384 months (32 years) and one day in federal prison and was ordered to pay $1,675 in restitution. He pleaded guilty in May 2014 to two counts of interference with commerce by robbery and two counts of using, carrying, and brandishing a firearm during and in relation to a crime of violence.
According to documents filed in the case, on Saturday, August 17, 2013, at approximately 10:15 p.m., Bonner, brandishing a firearm at an employee, robbed the Movie Trading Company store located on Camp Wisdom Road in Dallas. On Tuesday, September 3, 2013, at approximately 11:48 p.m., Bonner, brandishing a firearm at the business’s owner/manager, robbed the Buy Low Beverage Beer & Wine store located on Zang Boulevard in Dallas.
Bonner also admitted robbing the following Dallas businesses: The Hood Store, a Subway sandwich stop, a Shell gas station, and the Kiest Food Mart in September 2013 and the Waterboy store in August 2013. During each robbery, he brandished a firearm, and during The Hood Store robbery, Bonner shot the clerk and the bullet pierced the clerk’s hand and torso.
This case was investigated by the Dallas Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorneys Michelle Allen-McCoy and Danial Gividen prosecuted.
Coos County Felon Receives 15-Year Prison TermRead the Press Release
EUGENE, Ore. – Christopher Michael Morgan, 42, a resident of Coos County, Oregon, appeared before United States Chief District Court Judge Ann Aiken in Eugene today, and was sentenced to 15 years in prison for being an armed career criminal. Morgan, a felon, was found in possession of a loaded .45 caliber pistol while in a woman’s restroom at Mingus Park in Coos Bay, Oregon on June 18, 2013.
According to court documents and statements made in court, Morgan and a woman, both with outstanding warrants, were inside the women’s restroom at Mingus Park. A Coos Bay police officer confronted Morgan in front of the bathroom and attempted to arrest him for violating his Oregon parole. Morgan fought the officer and during the struggle held a loaded pistol, then tossed it away. After Morgan was subdued, methamphetamine was located in his shirt pocket. In addition to the federal charges, Morgan was also charged in state court with firearm and drug offenses, and resisting arrest. Morgan plead guilty on July 30, 2014, as part of a global resolution of his federal and state charges.
Morgan qualified to be sentenced as an armed career criminal because he possessed the loaded pistol after having been previously convicted of four residential burglaries and a felony assault. He had also been convicted six times in Oregon courts for possessing methamphetamine and once for being a felon in possession of a firearm. According to court documents, Morgan has been convicted of fifteen felonies and more than a dozen misdemeanors over the past twenty-three years.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms, and the Coos Bay Police Department. Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Coos County Deputy District Attorney Steven Petty, prosecuted the case.
Chamberlain Man Sentenced on Burglary ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Chamberlain, South Dakota, man convicted of Third Degree Burglary and Burglary of a United States Post Office was sentenced on October 28, 2014, by U.S. District Judge Roberto A. Lange.
James Short Bear, age 19, was sentenced to 15 months in custody on each count to be served concurrently, 2 years of supervised release on each count to be served concurrently, $1,040.88 in restitution to Crow Creek Housing, $1,206.85 in restitution to the Crow Creek Food Distribution Program, and $7,976.40 to the United States Postal Service, Chamberlain Post Office. A special assessment of $200 to the Federal Crime Victims Fund was also ordered.
Short Bear was indicted by a federal grand jury on March 11, 2014, for the Third Degree Burglary charge, and was indicted again on April 15, 2014, on the Burglary of a U.S. Post Office charge. He pled guilty on August 11, 2014, to both charges.
The first conviction stems from an incident which happened between February 10, 2014, and February 11, 2014, when Short Bear broke into the Crow Creek Housing Authority Office in Fort Thompson and stole two checkbooks. Short Bear attempted to cash one of the reported stolen checks at the Wells Fargo Bank in Lower Brule. However, he was recognized and law enforcement was summoned. During the investigation, law enforcement was contacted by the Crow Creek Food Distribution Program in Fort Thompson who discovered that Short Bear had attempted to enter their building on February 10, 2014.
The second conviction stems from an incident which happened between March 2, 2014, and March 3, 2014, when Short Bear broke into the Chamberlain Post Office by breaking the postmaster’s door. He stole a postal money order in the amount of $210. He also stole a check made out to AT&T. He changed the payee name on that check and attempted to cash it at a local bank.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency, and the United States Postal Inspection Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Short Bear was immediately turned over to the custody of the U.S. Marshals Service.
Car Dealer Convicted of Money LaunderingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal jury in Buffalo has convicted Jerry Robbins, 44, of Cheektowaga, NY, owner of Finish Line Auto Sales on Bailey Avenue in Buffalo, of money laundering and failure to report cash transactions of $10,000 or more. The convictions, which came after a nearly two week jury trial, carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Joel L. Violanti and Edward H. White, who handled the prosecution of the case, stated that Robbins helped drug dealers launder proceeds of their illicit business by purchasing high end used cars. During these sales, the drug dealers would pay the defendant cash for cars ranging in price from $10,500 to $45,000. Robbins used the name of another person in sales and title paperwork to disguise the true purchaser and source of the money.
In addition, in an effort to conceal the amount of money received for the sale of the car, Robbins listed that only a small deposit was received from the third party nominee, when, in fact, the drug dealers had paid cash in full for the car. For each of these types of transactions, Robbins also failed to file the proper forms with the Internal Revenue Service indicating the receipt of over $10,000 cash for the sale of the car, as required by law.The verdict is the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, the Federal Bureau of Investigation, and the New York State Department of Motor Vehicles, under the direction of Commissioner Barbara J. Fiala.
Sentencing is scheduled for March 5, 2015, in Buffalo, before U.S. District Judge Thomas McAvoy, who presided over the trial of the case.Camden County, N.J., Man Sentenced to 70 Months in Prison for $1.2 Million Phony Pizza Shop Investment Scam, Other OffensesRead the Press Release
CAMDEN, N.J. - A Laurel Springs, New Jersey, man was sentenced today to 70 months in prison for defrauding an investor out of approximately $1.2 million he claimed would be invested in a pizza shop, laundering that money, failing to report it to the IRS and threatening the victim to keep quiet about his crimes, U.S. Attorney Paul J. Fishman announced.
Giovanni Arena, 58, was previously convicted by a federal jury of 15 counts of mail fraud, eight counts of money laundering, three counts of failure to file income tax returns and one count of tampering with a witness. Arena was convicted in November of 2013 following a seven-day trial before Chief U.S. District Judge Jerome B. Simandle, who imposed the sentence today in Camden federal court.
According to documents filed in this case and the evidence at trial:
Arena’s scheme defrauded a single investor of approximately $1.2 million from 2004 through 2008. Arena, who had operated pizza restaurants in the past, enticed the victim to send checks and cash through the U.S. mail to invest in the purchase of a pizza shop in southern New Jersey. Rather than using the money to buy a restaurant, Arena purchased luxury automobiles – including a Maserati Coupe and Chevrolet Camaro – gambled at Atlantic City casinos and paid his living expenses.The jury reviewed casino records that showed the defendant spent many hours at the gaming tables, losing more than $700,000 in four years of Atlantic City gambling. During the trial, the jury watched surveillance video of the defendant buying in at a black jack table using $81,000 in cash he brought to the table in a shopping bag.
In addition, Arena willfully did not file his individual tax returns for tax years 2006, 2007
and 2008, failing to report hundreds of thousands of dollars in income to the IRS. After federal agents executed search warrants on Arena’s property during the course of the investigation, Arena instructed the victim investor to lie to federal investigators and made threatening statements, saying, “you better not put me in trouble because if you put me in trouble, I’ll put you in trouble.”In addition to the prison term, Judge Simandle sentenced Arena to serve three years of supervised release and ordered him to pay $1,219,200 in restitution to the victim. The judge also ordered Arena to forfeit assets, including the Maserati and the Camaro.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen in Newark, and inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch in Philadelphia, with the investigation.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
14-393Defense counsel: Brian S. O’Malley Esq., Haddon Heights, New Jersey
California Man, Aung Gaw, Sentenced to 13 Years in Prison for Crimes Involving the Sexual Victimization of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that AUNG GAW, a/k/a Michael Gaw, age 26, of Fremont, California, was sentenced today for Conspiracy to Produce Child Pornography. According to court documents, beginning in December 2012, and continuing until May 2013, GAW conspired with Jonathan Johnson, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet. On November 5, 2013, federal agents executed a federal search warrant at GAW’s Fremont, California residence. GAW has been in custody since his arrest on November 5, 2013.
Chief U.S. District Judge Sarah S. Vance sentenced GAW to 157 months imprisonment, to be followed by a term of supervised release of 10 years. In addition, GAW will be required to register as a sex offender pursuant to the Sex Offender Registration and Notification Act.
“Gaw and his co-conspirators victimized over 150 young people as part of their scheme to traffic child pornography,” stated U.S. Attorney Polite. “Today’s sentence of 13 years underscores our commitment to bringing justice to anyone who engages in this despicable criminal conduct.”
“Individuals who conspire to produce child pornography are directly responsible for what is, in plain language, the rape of children. Production and distribution of child pornography steals the innocence of children and destroys lives,” said HSI New Orleans Special Agent in Charge Raymond R. Parmer Jr. "Operation Roundtable serves as a stark warning that HSI special agents are actively working to identity and disrupt the trade of these illegal images, and also to identify and seek prosecution of the criminals who produce and possess them.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service for investigating this matter. Fraud Section Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
California Man Sentenced to 30 Years in Prison for a Maryland Murder Solved by DNARead the Press Release
DNA Sample Taken by California Police in 2013 Matched 2009 Maryland Murder Scene
Baltimore, Maryland - U.S. District Judge William M. Nickerson sentenced Dellando Recardo Campbell, age 32, of Lemoore, California, today to 30 years in prison followed by five years of supervised release for interstate domestic violence resulting in the death of a spouse, in connection of the death of Serika Dunkley Holness.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“The blood Dellando Campbell left behind at the 2009 crime scene was analyzed and entered into a national DNA database, where it waited four years for a match,” said U.S. Attorney Rod J. Rosenstein. “Thanks to a routine DNA analysis performed in California when Mr. Campbell was arrested on an unrelated charge, Maryland authorities finally learned the identity of the second killer of Serika Dunkley Holness.”
According to his plea agreement, Campbell agreed to help Ryan Dave Holness murder Ryan Holness’ wife, Serika Dunkley Holness, and conceal Ryan Holness’ role in the murder. Campbell had known Holness since 2002, when they served together in the Navy.
In November 2008, Holness represented himself to be his wife when he completed an on-line application for a $500,000 life insurance policy for his wife. Holness designated himself as the sole beneficiary of that policy. The policy would not have been issued had the insurer known that Holness purchased the policy.
Between May and June 4, 2009, Holness contacted Campbell by phone and text at least 34 times and arranged for Campbell to travel to New York City to assist in the murder of Serika Holness. On June 4, 2009, Holness told Campbell that he was going to kill the victim and that he needed Campbell’s help to make the murder appear to have been committed during a carjacking on the drive to Maryland.
Campbell admitted that on the evening of June 4, 2009, Holness drove Campbell and the victim from New York to Maryland. At around 1:30 a.m. on June 5, 2009, Holness, Campbell and the victim arrived at a rural area along MD Route 290, just south of MD Route 291, in Crumpton, Kent County, MD. Holness parked the Honda on a farm access road. Serika Holness was murdered in a field beside Route 290 where she was repeatedly stabbed, resulting in her death.
Campbell purposely left his own blood at the murder scene in order to provide support for Holness’s plan to tell the police that an unknown carjacker had attacked Holness and murdered the victim. Campbell admitted that he helped Holness stage the crime scene by depositing droplets of blood at various locations inside the passenger compartment of the Honda and on several of the victim’s personal items that were placed at the crime scene to be discovered by the police. Items at the murder scene from which Campbell’s DNA was later recovered included the victim’s purse, one of her sandals and a paperback book. Campbell then drove the Honda, guided by a GPS system, to a location between 6th and 7th Streets NW, Washington, D.C., where it was located and seized by homicide investigators later on June 5, 2009. Meanwhile, Holness told the police a bizarre, false story about the supposed carjacking.
On June 5, 2009 Holness was arrested and charged with premeditated murder. While being held in pretrial detention in Kent County, Holness asked another prisoner to draft a purported third party “confession” to the carjacking and murder. Holness told the cellmate to mail the detailed confession to the police from Washington, D.C. upon the cellmate’s release, which was imminent. Instead, the cellmate informed the state police of Holness’ efforts. Several pages of confessions, including pages written by Holness, were removed from Holenss’ cell by the state police.
After a two week trial, Ryan Holness, age 33, formerly of Lexington Park, Maryland, was convicted of domestic violence resulting in the death of a spouse and sentenced on June 9, 2011, to life in prison.
The DNA profile of the unidentified male found in Holness’ car and on items at the crime scene was entered into the national DNA data base, where it was regularly compared with DNA profiles recovered since its entry. On October 22, 2013, a sample of Campbell’s DNA was routinely obtained by police in Lemoore, California. In January 2014, the California Department of Justice notified the Maryland State Police that Campbell’s DNA profile matched the DNA profile for the unidentified male in the Holness case. Campbell was arrested by the Maryland State Police and FBI in Lemoore, California on February 7, 2014.
United States Attorney Rod J. Rosenstein praised the Maryland State Police and FBI for their work in the investigation and thanked the Kings County, California, District Attorney’s Office, the California Department of Justice and the Lemoore, California, Police Department for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys John F. Purcell, and Kenneth S. Clark, who prosecuted the case.
California Man Pleads Guilty to Trafficking Marijuana, Laundering MoneyRead the Press Release
COLUMBUS, OHIO – Samuel A. Flek, 25, of Orangevale, Calif. pleaded guilty today in U.S. District Court to drug conspiracy and money laundering charges.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, Columbus Police Chief Kim Jacobs and Franklin County Sheriff Zach Scott announced the plea entered today before U.S. District Judge Michael H. Watson.
According to court documents, beginning in April 2012, Flek was paid by a drug organization to make regular trips to Columbus, Ohio for the purpose of transporting narcotics proceeds from Ohio to California on behalf of co-conspirators. Flek often stored the money in his luggage on commercial flights, and later began shipping the cash in FedEx boxes under an alias.
Investigators established that Flek transported and/or shipped more than $1.5 million in drug trafficking proceeds during the time period at issue.
The defendant also transported between 100 and 400 kilograms of marijuana from Columbus to Dayton, Ohio.
Conspiracy to possess with intent to distribute more than 100 kilograms of marijuana is punishable by a term of imprisonment of five to 40 years and up to a $5 million fine. Conspiracy to commit money laundering is punishable by up to 20 years in prison and, in this case, a fine of up to $678,090.U.S. Attorney Stewart commended the cooperative investigation by the Bulk Cash Smuggling Task Force, as well as Assistant United States Attorney Mike Hunter and Special Assistant United States Attorney Brian Martinez, who are representing the United States in this case.
Caldwell Man Pleads Guilty in Tire Dumping CaseRead the Press Release
BOISE - Terry Dorton Anderson, 49, of Caldwell, Idaho, pleaded guilty today to two counts of injury to government property for dumping junk tires in two locations on public lands in Owyhee County managed by the Bureau of Land Management, U.S. Attorney Wendy J. Olson announced. Anderson was indicted on September 9, 2014, by a federal grand jury in Boise.
According to the plea agreement, Anderson admitted to dumping approximately 450 tires, in Squaw Creek Canyon near Highway 95 south of Marsing. Anderson also admitted dumping at least 200 hundred tires near a dirt road off Highway 78. The parties agreed that the Anderson’s illegal dumping caused over $14,500 in damages (as measured in clean-up costs). The tire dumping incidents occurred between July and December, 2012.
Anderson faces up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release. Anderson has also agreed to pay restitution of $14,500 for the tires dumped in Squaw Creek Canyon and an additional amount of not less than $7,157, for the tires dumped off Highway 78 if he does not remove them according to the conditions set by BLM by early summer 2015.
Sentencing is set for January 21, 2015, before Chief U.S. District Judge B. Lynn Winmill.
The case was investigated by the Bureau of Land Management, Idaho Department of Environmental Quality, Canyon County Sheriff’s Office, and Owyhee County Sheriff’s and Prosecutor’s Offices.
Bullhead Man Charged with Aggravated Sexual Abuse of A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bullhead, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child.
Edgar Yellow Earrings, age 51, was indicted by a federal grand jury on September 16, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on October 31, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an allegation that between March 7, 2001, and July 21, 2003, in Bullhead, Yellow Earrings engaged in a sexual act with a child under the age of twelve.
The charge is merely an accusation and Yellow Earrings is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Yellow Earrings was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Buffalo Man Sentenced on Gun and Drug ChargesRead the Press Release
BUFFALO, N.Y.B U.S. Attorney William J. Hochul, Jr. announced today that Juan Lopez, 31, of Buffalo, NY, who was convicted of possession of firearms in furtherance of drug trafficking activities and being a felon in possession of firearms, was sentenced to 108 months by Chief U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that in 2008, the defendant began utilizing Pennsylvania residents as straw purchasers to buy firearms in exchange for money and cocaine. These firearms were then brought to Buffalo for the purpose of drug trafficking. Lopez was a convicted felon at the time and unable to legally purchase firearms in New York.
“It is imperative that these types of criminals are prosecuted and brought to justice,” said U.S. Attorney Hochul. “Some of the guns involved in this case were brought into our community and used in the commission of violent crimes. Whether you are the criminal filling our streets with illegal weapons or the person who assists the criminal in obtaining a gun, you will be prosecuted to the fullest extent of the law.”
Lopez, who is currently serving 25 years in New York State prison for two previous attempted murder convictions, was arrested in September 2012 along with seven other defendants. Robert Johnson, Amie Hollingsworth, Misty Mihalko, Robert Reed, Brett Abrams, Jaqueline Runyan, and Trisha Amidon were all convicted and sentenced for their role in this case.
The sentencing is the culmination of an investigation by Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge James S. Higgins, New York Field Division.Beckley Heroin Dealer Pleads Guilty in Federal CourtRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Jason Calendar, 38, of Beckley, West Virginia, pled guilty in federal court in Charleston to distributing heroin. Calendar admitted that on August 1, 2014, he sold heroin to a person who was cooperating with law enforcement authorities. The drug deal took place on Laurel Terrace in Raleigh, West Virginia.
Calendar faces up to 20 years in prison and a $1,000,000 fine. United States District Judge Irene C. Berger scheduled the sentencing for February 11, 2015.
The Beckley/Raleigh County Drug and Violent Crime Unit conducted the investigation.This case was 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 opiates. The United States 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.
Armed Heroin Trafficker Pleads Guilty as Federal Jury Trial BeginsRead the Press Release
PROVIDENCE, R.I. – Christian Montalvo, 40, of Providence, pleaded guilty on Tuesday in U.S. District Court in Providence to drug trafficking and firearm charges as jury selection was underway in his federal court trial, announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston field divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Montalvo pleaded guilty, as charged, to one count each of possession of heroin with the intent to distribute and being a felon in possession of a firearm. At sentencing, Montalvo, who previously was convicted in Rhode Island state court of felony assault and in Puerto Rico of multiple robberies, faces statutory penalties of up to 30 years in federal prison to be followed by lifetime supervised release. No plea agreement was filed in this matter.
According to court documents, as the result of an ongoing investigation into Montalvo’s drug trafficking activities, ATF agents on November 14, 2013, executed a court authorized federal search at Montalvo’s residence and of his vehicle. During the search, agents seized nearly 10 grams of heroin found stashed inside a void in a bedroom door; a loaded .38 caliber revolver and various items used in the preparation and distribution of heroin discovered in the kitchen; and more than 58 grams of heroin discovered inside a hidden compartment inside Montalvo’s vehicle.
According to court documents, Montalvo admitted to an ATF agent that the drugs and the firearm were his and that he had purchased the firearm for $200 from a heroin user for protection.
Montalvo has been detained in federal custody since his arrest on November 14, 2013. He is scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on January 30, 2015.
Possession of heroin with the intent to distribute is punishable by a statutory penalty of up to 20 years in federal prison; a fine of up to $1,000,000; and a life term of supervised release with a mandatory minimum term of 3 years. Being a felon in possession of a firearm is punishable by a statutory penalty of up to 10 years in federal prison; a fine of up to $250,000; and a 3-year term of supervised release.
Should the defendant be found by the court to be an armed career criminal, he could face a minimum term of 15 years and up to life in federal prison.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
Providence Police assisted ATF in the investigation of this matter.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Alabama Man Convicted of Felon in Possession of A Firearm, Impersonating A Federal Officer, Interstate Stalking, and Tampering with WitnessesRead the Press Release
United States Attorney Brendan V. Johnson announced that Michael Heath Thetford, a/k/a Russ LNU, age 38, of Alabaster, Alabama, was found guilty of Felon in Possession of a Firearm, Impersonating a Federal Officer, Interstate Stalking, and Tampering with Witnesses as a result of a five day federal jury trial in Pierre, South Dakota.
The charges carry a maximum penalty of up to 38 years in custody and/or a $1,000,000 fine, 3 years of supervised release, and a $400 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Thetford was indicted by a federal grand jury on December 14, 2011, for Felon in Possession of a Firearm, Impersonating a Federal Officer, and Interstate Stalking.
On May 28, 2010, the victims, William Jack Winslett and Shirley Winslett, a married couple, were living at their home in rural Hughes County. The victims also own property and other assets in Alabama. That afternoon, Thetford came to their door posing as a Special Agent with the Federal Bureau of Investigation (FBI). Thetford was wearing a dark suit, displayed FBI and military credentials, had a pistol on his hip, and identified himself as “Agent Russ.” Thetford accused the victims of being involved in drug trafficking and other criminal matters. The victims believed he was an actual FBI Agent. Thetford informed the victims they needed to accompany him to a polygraph examination in Sioux City, indicating they could be arrested at the end of the interview. Thetford told them they would need to bring their computers, so they produced their computers for the trip to Sioux City. Thetford directed the victims into the back seat of his vehicle, which had locked back-seat doors.
Thetford drove the victims toward Sioux Falls, but stopped at Humboldt, where he informed the victims that he had received a cell phone call which cleared them of the drug investigation, and that a different arrest was in the process of being made, and he would return them home. Along the drive home, there was friendlier talk with the victims. Thetford learned both victims were shooting sport enthusiasts, and learned Mr. Winslett had a knack for gunsmithing. Ultimately, Thetford left his pistol with the victims, asking that Mr. Winslett do some repair work on the trigger. On June 4, 2010, Thetford, posing as “Agent Russ” sent the Winsletts an email indicating an arrest had been made and he would enter them into a victim compensation program.
Over the course of several following months, the Winsletts had trouble maintaining contact with Agent Russ, and began to doubt he was an actual FBI Agent. The FBI began to track Thetford’s travel to and from South Dakota between May 25 and May 29, 2010. Around November 16, 2011, federal search warrants were obtained for Thetford’s home in Alabaster, Alabama. Numerous items of evidence were found, including fake FBI badges, fake military credentials, fake credentials for surgeons, fake Immigration and Customs Enforcement uniforms and credentials, pepper spray, handcuffs, computers, and molds and materials to make other law enforcement badges and credentials.
Thetford was tracked over three days and arrested on November 19, 2011, after he fled on foot from pursuing FBI agents through a rural wooded area known as Confederate Memorial Park in Alabama. After his arrest, Thetford sent a letter to a family member asking the family member to track down a laptop computer that he did not want law enforcement authorities to find. The laptop computer and other computer media seized from his home connected Thetford to a plot to defraud the Winsletts by illegally transferring their Alabama real estate and other property and assets to himself and his land surveying business. Thetford unlawfully used fake notary credentials to make transfer paperwork look legitimate. Thetford’s associate testified at trial that Thetford wanted to take and sell the victim’s Alabama property, so Thetford traveled to South Dakota in May of 2010 to investigate the victims and determine if they had plans to come back to Alabama.
Though incarcerated on other Alabama charges, around February 13, 2013, Thetford sent a letter to the Winsletts that served to threaten and intimidate the victims. The letter sought to have the Winsletts stop cooperating with law enforcement authorities and withhold testimony. A superseding Indictment alleging Witness Tampering was obtained in March 2014.
This case was investigated by the South Dakota Division of Criminal Investigation, the Pierre FBI office, the Birmingham, Alabama FBI office, the U.S. Marshal’s Service, the FBI’s Science and Technology Branch Investigative Analysis Unit, and other local law enforcement agencies in Alabama. Assistant U.S. Attorney Tim Maher prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for January 5, 2015. Thetford was remanded to the custody of the U.S. Marshals Service pending sentencing.
Agilent Technologies, Inc. to Pay $849,678 to Resolve Fraud Allegations of Bid RiggingRead the Press Release
SAN FRANCISCO – Agilent Technologies, Inc. has agreed to pay the government $849,678 to resolve allegations that it submitted false claims to the United States in connection with the sale of electronic measurement instruments, United States Attorney Melinda Haag and Defense Criminal Investigative Service Special Agent in Charge Chris Hendrickson announced today.
In March 2013, Agilent made a voluntary disclosure to the Inspector General of the Department of Defense that certain sales of electronic measurement instruments and systems to the government were the result of improper coordination of pricing and bid strategy between Agilent and its distributors and resellers. During the government’s subsequent investigation, Agilent provided information and materials showing that it entered into agreements with its partners on whether to bid, and what prices to bid, often for the purpose of meeting the requirement under procurement rules that the government consider a minimum of three bids. The settlement agreement resolves the government’s investigation, in which Agilent fully cooperated.
“This settlement demonstrates our continuing commitment to ensure the integrity of the government procurement system. We commend Agilent for its prompt disclosure of improper price coordination, and subsequent cooperation in the government’s investigation.”
The settlement with Agilent was the result of a coordinated effort among the United States Attorney’s Office, Defense Criminal Investigative Service, Defense Contract Audit Agency, and the General Services Administration, Office of Inspector General.
Assistant U.S. Attorneys Steven J. Saltiel and Ann Marie Reding handled the matter on behalf of the U.S. Attorney’s Office.
Tuesday 4 November 2014
Virginia Man Pleads Guilty to Possession of Child PornographyRead the Press Release
And Traveling to Engage in Illicit Sexual Conduct With a Minor
WASHINGTON – Ryan Chord, 35, of Virginia Beach, Va., pled guilty today to federal charges of traveling interstate to engage in illicit sexual conduct with a minor and possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Chord entered the plea in the U.S. District Court for the District of Columbia. The Honorable Christopher R. Cooper is to sentence him on March 3, 2015. Chord faces a statutory maximum of 30 years of imprisonment for traveling interstate to engage in illicit sexual conduct and up to 10 years for possession of child pornography, as well as potential financial penalties.
According to the government's evidence, on Feb. 21, 2014, Chord contacted an undercover officer with the FBI's Child Exploitation Task Force, through a social network site. Over the next few days, Chord engaged in instant messaging with the undercover officer, whom he believed was the father of an under-aged girl. During this period, Chord arranged with the undercover officer to meet for the purpose of engaging in sexual acts with that child.
During the course of their communications, Chord also sent the undercover officer approximately 17 images of child pornography. On March 7, 2014, Chord traveled from Virginia Beach to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
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United States Attorney Wigginton Announces Press Event Relating to Response to Civil Unrest in Our CommunitiesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that he anticipates that there will be a press conference held on Wednesday, November 5, 2014, at 3:00 PM, at the Jackie Joyner Kersee Center, 1003 North 25th Street, East St. Louis, Illinois.
It is expected that this conference will involve a broad coalition of elected officials, chiefs of police, clergy members, and community leaders from several communities throughout the Metro-East, who will be on hand to discuss their ongoing efforts in addressing racial harmony and to express their common desire for unity and peace in light of the civil unrest occurring in various communities throughout our area and our nation.
United States Attorney Ortiz Appoints District Election Officer to Monitor Integrity of PollsRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that Assistant United States Attorney Robert A. Fisher will lead the efforts of her Office in connection with the Justice Department's nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Robert A. Fisher has been appointed to serve as the District Election Officer (DEO) for the District of Massachusetts, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Ortiz said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Carmen M. Ortiz stated that AUSA Robert A. Fisher will be on duty in this District while the polls are open. He can be reached by the public at 617-748-3612.
In addition, the FBI will have special agents available in each field office and resident agency office throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 617-742-5533.
Complaints about possible violations of the federal voting rights laws can be made directly to the Department of Justice Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Carmen M. Ortiz said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Two Men Sentenced in Immigration CasesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Hareshkumar Patel, 44, of Tonawanda, NY, and Pankajkumar Patel, 41, of Geneva, NY, who were convicted of immigration charges, were sentenced by U.S. District Court Judge Richard J. Arcara to time served and one year supervised release.
Assistant U.S. Attorneys Elizabeth Moellering and John E. Rogowski, who handled the case, stated that Hareshkumar Patel and Pankajkumar Patel, both aliens, submitted false statements in immigration matters in September of 2008 and August of 2010 respectively. The defendants filed petitions for a non-immigrant worker with Citizenship and Immigration Services and forged the signature of other individuals.
The sentencings are the culmination of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge of the Buffalo Office James C. Spero.Trumbull Accountant Involved in Fraud Scheme Is SentencedRead the Press Release
Follow @USAO_CT
The United States Attorney for the District of Connecticut announced that THOMAS RAGONESE, 55, of Trumbull, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to three years of probation, the first six months of which RAGONESE must spend in home confinement on electronic monitoring, for participating in a scheme to defraud a Bridgeport-based residential property owner. He was also ordered to perform 60 hours of community service.
According to court documents and statements made in court, Anthony Testo and his business, ACT Builders, Inc., were contracted to serve as a property manager for an entity in Bridgeport that owned an apartment complex and several single and multi-family residences. Testo’s role as property manager included filling vacant rental units, setting rental amounts, collecting security deposits, collecting rent from tenants and depositing rental payments in the property owner’s bank account. Testo also was required to submit to the property owner a monthly “rent roll,” which was a spreadsheet showing the occupancy of the rental units, the rental amounts due and the rental payments collected from tenants. RAGONESE provided accounting services to Testo and ACT Builders. At Testo’s instruction, RAGONESE prepared the rent rolls.
From approximately January 2007 to August 2010, Testo and ACT Builders, with RAGONESE’s assistance, defrauded the property owner by submitting fraudulent rent rolls that misrepresented that certain rental units were vacant with no rent due when, in fact, the apartments were occupied and rent had been collected. The rent rolls also misrepresented that the rent due and collected for certain rental units was lower than the amount that was actually collected. Testo deposited rental income that was due to the property owner into both his personal bank account and the ACT Builders bank account.
Through this scheme, and also by submitting fraudulent subcontractor invoices to the property owner, Testo defrauded the defrauded the property owner of at least $275,000.
For the 2007 through 2010 tax years, RAGONESE prepared Testo’s federal tax returns, which failed to report the rental income that Testo kept for his own use and benefit. This resulted in a tax loss to the Internal Revenue Service of $71,795.
On July 17, 2014, RAGONESE pleaded guilty to one count of aiding and assisting the preparation and filing of a false tax return.
On June 20, 2014, Testo pleaded guilty to one count of conspiracy to commit wire fraud and one count of assisting in the preparation and filing of a false tax return. Testo also admitted that he failed to report his fraudulent income on his 2007 through 2010 personal federal income tax returns. In addition, Act Builders pleaded guilty to one count of conspiracy to commit wire fraud.
On November 3, 2014, Testo was sentenced to five months in community confinement (halfway house), followed by three years of supervised release, the first six months of which must be served in home confinement. He was also ordered to pay an $18,000 fine, $275,000 in restitution to the victim, and $71,795, plus penalties and interest, to the IRS. ACT Builders was sentenced to five years of probation.
This matter was investigated by the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Felice Duffy.
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[email protected]Trio Charged Federally with Aiding and Abetting Series of RobberiesRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that an Indictment has been filed by a grand jury in Scranton against Charles Conden, age 48, and Cindy Conden, age 28, both of Hanover Township, and James Hughes, age 26, Nanticoke, charging them with aiding and abetting in the commission of multiple robberies.
According to United States Attorney Peter Smith, Jeffrey Townsley, age 43, Kingston, engaged in an 18-day crime spree beginning on December 24, 2013 and ending on January 10, 2014. The crimes included two bank robberies and seven robberies of local businesses. Townsley was arrested on January 10, 2014 and remains in custody in the Lackawanna County Prison.
The indictment returned today charges Charles Conden with aiding and abetting Townsley in the commission of the robberies at Aldi’s Market in Kingston on January 7, 2014, Thomas’ Market in Larksville on January 8, 2014, and the Family Dollar in Ashley on January 10, 2014. Cindy Conden and James Hughes are charged with aiding and abetting Townsley in the commission of the Aldi’s robbery.
The maximum penalties in this case include two years’ incarceration for each robbery, and fines of $250,000.
The indictment today is the result of an investigation by the Federal Bureau of Investigation with the assistance of police departments of Kingston, Kingston Township, Larksville, Hanover Township, Wilkes-Barre, Plains, and Ashley, and the Luzerne County District Attorney Detectives. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Trial Date Set for Cedar Rapids Man Charged with Being an Unlawful Drug User in Possession of FirearmsRead the Press Release
A trial has been scheduled in the case against Kendan Fonville, age 24, from Cedar Rapids, Iowa. Fonville has been charged with two counts of being an unlawful drug user in possession of firearms.
The charges are contained in an Indictment filed on October 30, 2014, in United States District Court in Cedar Rapids. Count 1 of the Indictment alleges that, on or about March 24, 2012, Fonville possessed a stolen AK-47 rifle while he was an unlawful user of marijuana. Count 2 of the Indictment alleges that, on or about August 31, 2012, Fonville possessed a .380 caliber handgun while he was an unlawful user of marijuana.
According to a previously filed criminal complaint, Fonville (aka “Fudd”) allegedly has four prior arrests for possession of marijuana and one prior arrest for possession of crack cocaine. The complaint alleges that, on March 24, 2012, Cedar Rapids Police Officers heard numerous shots being fired as they were approaching the 1400 block of 4th Avenue Southeast. In their investigation, officers allegedly recovered an AK-47 rifle that had been reported stolen and 22 spent rifle casings. Witnesses allegedly reported seeing Fonville fire the rifle.
The complaint also alleges that, on August 31, 2012, Cedar Rapids Police Officers attempted to stop a vehicle. The complaint alleges that, upon initiating the traffic stop, Fonville ran from the driver’s side of the vehicle. The complaint alleges that, during the foot pursuit, officers observed Fonville reaching for his waist band area. Fonville was allegedly lost during the chase. Officers allegedly believed that, during the chase, Fonville was attempting to discard a firearm. The officers allegedly retraced their steps and located a .380 caliber pistol.
If convicted on all charges, Fonville faces a possible maximum sentence of twenty years’ imprisonment, a $500,000 fine, $200 in special assessments, and six years of supervised release following any imprisonment.
Fonville’s next appearance for trial has been set for January 5, 2015.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.The case is being prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the FBI Safe Street’s Task Force and the Cedar Rapids Police Department.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-117 LRR.
Thurmont Heroin Dealer Sentenced to 7 Years in PrisonRead the Press Release
Sold Heroin to a Customer Resulting in the Man’s Death
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Jacob Powell, age 21, of Thurmont today to seven years in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Judge Quarles also ordered Powell to pay more than $7,000 in restitution, to cover the medical costs and funeral expenses of the person who died after Powell and a co-defendant supplied the victim with heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to Powell’s plea agreement, between July 2012 and June 2014, Powell conspired with Myers and others to distribute heroin in western Maryland. Powell and Myers regularly obtained heroin from sources and re-sold that heroin to customers in and around Thurmont and Emmitsburg, Maryland.On June 11, 2013, Myers and Powell sold heroin to Derek Dunsmore in Emmitsburg. The heroin Myers and Powell sold caused the death of Derek Dunsmore.
Kathleen Elizabeth Myers, age 21, of Thurmont, Maryland, previously pleaded guilty to the same charge and was sentenced on October 29, 2014 to seven years in prison.
United States Attorney Rod J. Rosenstein praised the DEA, Frederick County Sheriff’s Office, Maryland State Police and the Frederick County Narcotics Task Force for their work in the investigation and thanked Special Assistant U.S. Attorney Anthony J. Enright and Assistant U.S. Attorney Robert R. Harding, who prosecuted the case.Three Convicted in Federal Court for Their Role in a Nationwide Timeshare Telemarketing Fraud Scheme Targeting the ElderlyRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin, announced today that following a six day jury trial, Jason D. Schultz (age: 31), and Jessica M. Gilbert (age: 25) of Green Bay, Wisconsin, as well as Jessica Weinhart (nee Hensen) (age: 31) of Neenah, Wisconsin were convicted of conspiracy to commit mail and wire fraud. The jury further found that they had engaged in a telemarketing scheme that defrauded at least 10 individuals over the age of 55 thus subjecting each to enhanced penalties under the “Senior Citizens Against Marketing Scams” or SCAMS Act. Each faces a maximum term of imprisonment of 30 years. Sentencing hearings have been scheduled for January 27, 2014, before Chief District Court Judge William C. Griesbach, at the federal courthouse in Green Bay, Wisconsin.
The evidence presented at trial proved that each of the defendants participated in a fraudulent timeshare resale telemarketing scheme located in Green Bay, Wisconsin, which resulted in over three thousand victims in all fifty states and Canada being defrauded of approximately $2.5 million. The fraudulent scheme spanned from April 2007 to April 2011, and operated under several different business entities, including: Integrated Advertising Solutions, National Timeshare Resales, Administrative Timeshare Resales, and Midwest Timeshares. Numerous witnesses and victims testified that timeshare owners, most of them elderly, were contacted by telemarketers and told that “interested buyers” were prepared to purchase their timeshares in exchange for upfront fees ranging from a few hundred dollars to a few thousand dollars. After handing over their payment information, victims received a one page contract which informed them that they were merely paying for “advertising” on the company’s website. Evidence showed that telemarketers determined the fee amount based solely on the vulnerability and susceptibility of the victims to their untruthful sales pitch. Victims that contacted the companies seeking a refund or inquiring about the status of the sale of their timeshare were repeatedly told lies or given excuses designed to keep them from contacting their financial institution and stopping payment to the fraudulent entities. Twelve victims from around the country ranging in age from sixty-nine to ninety-one testified at trial that they were guaranteed buyers in exchange for the up-front fee. Several of the victims testified that they had been defrauded by similar schemes in the past.
Five other individuals previously plead guilty for their participation in the timeshare resale telemarketing fraud, including the primary figure in the scheme, Mark S. Parks. All are currently awaiting sentencing.
This case was a joint investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, with assistance from the Better Business Bureau, and the Wisconsin Department of Agriculture Trade and Consumer Protection. This case was prosecuted by Assistant United States Attorneys Matthew L. Jacobs and Daniel R. Humble.
Over the past decade similar timeshare resale telemarketing schemes have grown exponentially, due to a glut of timeshare ownership and rising maintenance fees. Many of these fraudulent schemes are operated by companies based in Florida and Nevada. Timeshare owners receiving solicitations to sell or advertise their ownership interests should contact the Federal Trade Commission, United States Postal Inspection Service, local FBI office, their State’s office of consumer protection, or State Attorney General’s office.
Three Convicted of Drug Trafficking OffensesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistELKINS, WEST VIRGINIA – Three West Virginia residents pled guilty in federal court to drug trafficking offenses, United States Attorney William J. Ihlenfeld, II, announced today
Jeremiah Dustin Dean, 33, of Moorefield, West Virginia, was discovered with oxycodone pills during the course of an investigation by the West Virginia State Police and the Potomac Highlands Drug and Violent Crime Task Force. He pled guilty today to one count of “Possession with Intent to Distribute Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000.00.
Mindy Rachelle Leary, 26, of Durbin, West Virginia, and Justin Gregory Riffe, 24, of Bartow, West Virginia, admitted to distributing pseudoephedrine, a component used to manufacture methamphetamine. They each pled guilty to one count of “Distribution of a Laboratory Supply, Knowingly to Manufacture Methamphetamine” Each defendant faces up to one year in prison and a fine of up to $100,000.00.
Assistant U.S. Attorney Steve Warner is prosecuting the cases on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Tampa Woman Sentenced to More Than Four Years for Tax FraudRead the Press Release
Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Erica Lambert (31, Tampa) to four years and two months in federal prison for conspiracy to defraud the United States Treasury, and to commit wire fraud in connection with filing fraudulent tax returns. She was also ordered to pay restitution to the IRS in the amount of $499,923. Lambert pleaded guilty on July 25, 2014.
According to court documents, Lambert, along with others, electronically filed tax returns using stolen and fraudulently obtained means of identification. Lambert and her co-conspirators kept track of the fraudulent returns and refunds in detailed ledgers that were found at Lambert’s residence. The fraudulent tax refunds were issued in the form of U.S. Treasury checks and debit cards in other individuals’ names. Lambert and her co-conspirators used the refunds to obtain cash and goods for their personal use.
On January 21, 2014, co-conspirator Earl Rojelio Blanchett was sentenced to 10 years and four months in federal prison for his role in this tax fraud scheme. According to court documents, Blanchett sold seven Treasury checks, with a face value of more than $77,000, to undercover law enforcement agents.
This case was investigated by the FBI, IRS – Criminal Investigation, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
St. Louis County Man Pleads Guilty to Tax and Weapons ChargesRead the Press Release
St. Louis, MO – JOEY D. WOOD pled guilty to filing four false tax returns for himself and two others claiming refunds totaling over $23,000 for tax years 2011 and 2012.
According to court documents, Wood, who was engaged in the business of preparing income tax returns for individuals, filed false tax returns for himself claiming refunds for 2011 and 2012, and filed false returns claiming refunds for two other people for 2011. Additionally, on May 17, 2013, Wood was in possession of a firearm. Due to a previous felony conviction, he is prohibited from owning or possessing firearms.
"The object of this refund scheme was to steal from the government and the taxpaying public," said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation. "The prosecution of these crimes is a vital element in maintaining public confidence in our tax system."
Wood, St. Louis County, Missouri, pled guilty to four felony counts of making false statements to the government and one felony count of being a previously convicted felon in possession of a firearm. He appeared before United States District Judge Catherine D. Perry. Sentencing has been set for January 20, 2015.Each of the tax counts carry a maximum penalty of 5 years in prison and/or fines up to $250,000, the firearms charges carries a maximum of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by IRS Criminal Investigation, the St. Louis County Police Department and the Missouri Department of Revenue. Assistant United States Attorney Steven Muchnick is handling the case for the U.S. Attorney's Office.
Springfield Woman Sentenced for Assaulting Federal Agent with her CarRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., woman was sentenced in federal court today for assaulting a federal agent with her car while he was attempting to apprehend her boyfriend during a foot chase.
Alisha Johnson, 33, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to six years and six months in federal prison without parole. The court also ordered Johnson to pay $9,926 in restitution to the agent who was injured and $14,886 in restitution to the Office of Workers’ Compensation Programs.
On July 25, 2013, U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) agents were attempting to apprehend Francisco Sosa-Lopez for immigration violations. When Sosa-Lopez saw the approaching agents, he fled the area on foot. While the agents were pursuing Sosa-Lopez, Alisha Johnson arrived in her vehicle and attempted to pick up Sosa-Lopez.
As Sosa-Lopez attempted to get in the vehicle, Johnson shouted derogatory comments at the pursuing agents, indicating that she was aware of the agents’ intent to apprehend Sosa-Lopez. Agents continued the pursuit and ordered Sosa-Lopez to not enter the vehicle. Sosa-Lopez ignored the agents’ directives and continued to try to enter the rolling vehicle. As one of the agents approached Sosa-Lopez, Johnson drove her vehicle over the curb and into the agent, striking the agent on the left leg. Sosa-Lopez entered the vehicle and fled from the scene; he remains a fugitive from justice. Johnson voluntarily surrendered to law enforcement shortly after the incident.
As result of being struck by the vehicle, the federal agent suffered significant damage to his knee. Two surgeries were later performed on his knee.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) and the Greene County, Mo., Sheriff’s Department.Spokane Area Fraudster Sentenced to 108 MonthsRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Senior United States District Court Judge Robert H. Whaley sentenced Doris E. Nelson, 55 of Colbert, Washington, to a 108-month term of imprisonment after having previously entered guilty pleas in April, 2014 to 110 charges related to Wire Fraud, Mail Fraud, and International Money Laundering connected to a massive scheme that Nelson operated. Judge Whaley also sentenced Nelson to a three-year term of court supervision after she is released from Federal prison. A restitution hearing will be scheduled within 90 days.
Nelson admitted the allegations set forth in the Superseding Indictment – that she ran a fraud scheme for over eight years and took in approximately $137 million from at least 650 investors worldwide. As alleged, Nelson operated an unprofitable payday and short-term lending business, known as the Little Loan Shoppe, which she began in British Columbia, Canada in approximately 1997 and which she continued in Spokane, Washington beginning in approximately 2001. Despite the Little Loan Shoppe’s unprofitability, Nelson solicited hundreds of investors by leading them to believe, falsely, that her payday loan business was profitable and that her business profits allowed her to pay investors a 40% to 60% (and up to as much as 75%) annual return. Nelson claimed that these astronomical returns would be paid from the profits of the Little Loan Shoppe. Nelson also made numerous false and fraudulent statements about the Little Loan Shoppe in order to induce investors. She communicated with her investors in person, by telephone, by email, and through the mails. Nelson solicited investors who resided throughout the United States and in international locations, including Canada and Mexico.
Rather than paying her investors returns from a profitable business as Nelson had claimed, investors were paid “interest” with their own money or the money of other investors. In contrast to her consistent representations, Nelson was operating a massive fraud scheme where investors’ individual returns were paid using their own investments or monies paid by other investors. Investor funds rarely, if ever, were used to fund new customer loans, as Nelson assured investors they would be, and the Little Loan Shoppe lending operations did not generate profits from which investor payments could be made. As Nelson developed a history of paying investors “lulling payments” from subsequent investments, her track record became the single most persuasive factor for additional investors. In this way, Nelson’s scheme to defraud grew rapidly until it could no longer sustain itself. The scheme collapsed in 2008, when the flow of new funds could no longer support the payments required on the earlier investments and Nelson abruptly announced that all investments would be changed to a 10% interest rate. Nelson ended most payments to investors around this time, and by February 2009 she suspended all payments.
Nelson’s scheme resulted in personal withdraws of investor money of approximately $4.3 million. With these proceeds, she funded a lavish lifestyle for herself and her family. For example, Nelson spent approximately $223,000.00 in St. John Knits stores located in Las Vegas, Nevada, New York, Honolulu, and Beverly Hills as well as approximately $217,000.00 in purchases from Nordstrom. She also spent approximately $58,000.00 on art work while on a cruise in 2006. Nelson also incurred substantial gambling losses -- approximately $432,000.00 in 2008, and approximately $960,000 in 2007, at the MGM Grand Casinos in Las Vegas.
As Nelson’s fraudulent scheme began to collapse in 2008, Nelson’s investors forced the Little Loan Shoppe into bankruptcy in the summer of 2009. Shortly thereafter, the scheme was brought to the attention of IRS-CI, the FBI, and the United States Attorney’s office. An investigation was commenced and in April, 2010, agents with the IRS-CI and the FBI seized, among other assets, cash, a Mercedes Benz, a Corvette, and jewelry from her residence.
Michael C. Ormsby said, “The nine year sentenced imposed in this case reflects the seriousness of ‘white collar’ crime and that those accused of defrauding others will be fairly and justly held accountable for their criminal conduct. This case is yet another example of the commitment of the United States Attorney’s Office to prosecute aggressively fraud cases in the Eastern District of Washington. The federal agencies, including the IRS Criminal Investigation and the FBI, are commended for their tireless efforts in thoroughly investigating this case.
"The victims in this case suffered unimaginable harm, many losing their life's savings," said Special Agent in Charge Teri Alexander of IRS Criminal Investigation. "It is difficult to say what motivated Doris Nelson to take advantage of her client's trust. This type of unchecked fraud corrodes our nation's economy and wreaks havoc on the lives of the victims. IRS Criminal Investigation together with our partners at the FBI and Department of Justice are vigilantly on the lookout for would-be swindlers."
This case was investigated by the Internal Revenue Service-Criminal Investigations and the FBI. The sentencing in this case was handled by Caitlin A. Baunsgard, an Assistant United States Attorney for the Eastern District of Washington.
11-CR-00159-RHW
South Lake Tahoe Man Sentenced to One Year in Prison for Workers’ Compensation FraudRead the Press Release
SACRAMENTO, Calif. — Mark E. Leung, 60, of South Lake Tahoe, was sentenced today by United States District Judge John A. Mendez to one year in prison and ordered to pay $160,000 in restitution for making a false statement to obtain workers’ compensation benefits, United States Attorney Benjamin B. Wagner announced.
According to court documents, Leung worked for the United States Postal Service until 1987 when he claimed he sustained a work-related injury. Leung never returned to full-time employment with the Postal Service and began receiving workers’ compensation benefits in 1987. From September 2007 through November 2012, Leung received approximately $160,000 in benefits from the Department of Labor, which administers the program for the United States Postal Service. To obtain the benefits, Leung submitted an annual certification form and also had his medical providers attest that he could not perform any work due to the pain that limited his mobility and range of movement. In fact, Leung was not so disabled. Among other things, while claiming he was totally disabled from employment, Leung maintained a yearly ski pass for Heavenly Ski Resort in Lake Tahoe where he regularly skied for at least 40 days per ski season. Moreover, Leung was as also observed performing arduous physical labor on numerous days.
This case was the product of an investigation by the United States Postal Service, Office of Inspector General and the Department of Labor, Office of Inspector General. Assistant United States Attorney Todd Pickles prosecuted the case.
Rwandan Refugee Who Became Naturalized Citizen Is Indicted for Naturalization FraudRead the Press Release
Ken Ngombwa, 54, from Cedar Rapids, Iowa, has been charged with one count of unlawfully procuring or attempting to procure naturalization or citizenship; one count of procuring citizenship to which he was not entitled; one count of conspiracy to unlawfully procure citizenship; and one count of making a materially false statement to agents of the United States. The charges are contained in an Indictment unsealed today, in United States District Court in Cedar Rapids, following the arrest of Ngombwa without incident in Cedar Rapids.
The Indictment alleges that beginning in at least March 1998 and continuing through at least November 19, 2004, Ngombwa attempted to procure citizenship for himself and family members who accompanied him to the United States from Rwanda. According to the Indictment, Ngombwa and others made a number of false statements that were relied upon by United States immigration authorities in deciding to grant Ngombwa refugee status and permanent resident alien status; which eventually permitted Ngombwa to become a naturalized citizen of the United States. The alleged false statements included a claim that Ngombwa is the brother of Faustin Twagiramungu, a former Prime Minister of Rwanda.If convicted on all counts, Ngombwa faces a possible maximum sentence of 30
years’ imprisonment, a $1,000,000 fine, $400 in special assessments, and 12 years of supervised release following any imprisonment. Ngombwa also faces loss of citizenship.Ngombwa appeared today in federal court in Cedar Rapids and was released on bond. Ngombwa was ordered to: surrender any passport or travel documents; not travel outside of Linn County, Iowa; have no contact with potential witness concerning the case; and undergo a mental health evaluation. Other standard conditions of release were also imposed.
As with any criminal case, a charge is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The case is being prosecuted by Assistant United States Attorney Richard L. Murphy and was investigated by Homeland Security Investigations.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00123.
Rockwall Man Pleads Guilty to Federal Child Pornography Offense Involving Images of Prepubescent ChildrenRead the Press Release
DALLAS — A 32-year-old Rockwall, Texas, man appeared this morning in federal court, before U.S. Magistrate Judge Irma C. Ramirez, and pleaded guilty to an indictment charging one count of possession of prepubescent child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Christopher Michael Burgess, who remains in federal custody, faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. Sentencing is set for April 20, 2015, before U.S. District Judge Sam A. Lindsay.
According to documents filed in the case, in May 2013, an individual (mother) looked on Burgess’s computer, found child pornography, and immediately took the computer to the Rockwall Police Department. Based on this individual’s report, the officer was able to secure a warrant to search the computer’s content.
The North Texas Regional Computer Forensic Lab examined the hard drive and located more than 500 images and 10 videos of child pornography, some videos involving infants. Burgess admits that some of the videos he collected depicted sadistic and/or violent content.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Rockwall Police Department investigated. Assistant U.S. Attorney Camille Sparks is in charge of the prosecution.