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19 December 2014
Albany Oregon Man Sentenced to 60 Months in Federal Prison for $5 Million Securities FraudRead the Press Release
EUGENE, Ore. –U.S. District Court Judge Ann Aiken sentenced Joseph Anthony LaCoste, 50, of Albany, Oregon, to 60 months in prison and ordered him to pay $1.6 million in restitution for securities fraud violations. LaCoste, the former chief executive officer of Willamette Development Services (WDS), a real estate development company based in Albany, Oregon, had previously pleaded guilty to conspiracy to commit securities fraud for his conduct associated with WDS.
According to court documents, LaCoste, a former high school teacher and coach, lured individuals to invest with him and WDS be telling a series of lies: he lied about his educational background; he lied about the financial condition of WDS; he lied about the rate of return on the investments; and he lied about the nature and use of the investments. LaCoste also failed to inform his investors that he had been fired from U.S. Bank for dishonest and unethical conduct and that he had previously filed for bankruptcy. Based on his misrepresentations, LaCoste, between 2006 and 2008, duped more than 50 people to invest more than $5.2 million with him and WDS.
In reality, WDS and its alleged real estate projects were undercapitalized, and the projects were not progressing. To avoid detection and to further the scheme, LaCoste and others commingled investor money and transferred investor money between various projects and businesses to make it appear as if the projects were on schedule and the company was profitable. In 2008, LaCoste’s scheme collapsed. At that time, he had failed to complete a single project, and the investors lost their money.
After his WDS scheme collapsed, LaCoste engaged in a new scheme to induce four property owners in Washington to transfer ownership of their property to his control by falsely representing that he had the experience and skills to develop their property into a profitable real estate venture. Similar to his WDS investors, LaCoste falsely promised these property owners a huge return and failed to tell them that he had been fired from U.S. Bank for dishonest and unethical conduct and that he had previously filed for bankruptcy. In the end, this scheme also collapsed, and the property owners lost more than $150,000.
LaCoste’s codefendants, Angela McCoy and Anthony Tuomi, are scheduled to be sentenced on January 28, 2015, at 1:30 pm before the Honorable Thomas M. Coffin.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Oregon Division of Finance and Corporate Securities.
Alabama Medical Clerk Sentenced to Prison Tax Refund Fraud Scheme that Involved U.S. Postal Service EmployeeRead the Press Release
Montgomery, Alabama - A Prattville, Alabama woman was sentenced yesterday to serve 70 months in prison for her involvement in a stolen identity tax refund fraud (SIRF) scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama, and Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division.
Sasha Webb, 26, was also ordered to serve three years of supervised release following her prison sentence and to pay $528,823 in restitution.
According to court documents and court proceedings in this and related cases, Webb worked as a medical records clerk at an Alabama Department of Corrections facility in Elmore County, Alabama, where she had access to the means of identification of inmates from databases maintained by the Alabama Department of Corrections. On several occasions in 2009 and 2010, Webb stole identities from those databases and sold them to Harvey James and his sister, Jacqueline Slaton, for the purpose of filing false tax returns.
Between 2010 and 2012, James and Slaton used those stolen identities to file false federal and state tax returns. James and Slaton directed some of the false refunds to be sent to either prepaid debit cards or issued via check. James’s brother-in-law, Gregory Slaton, recruited Vernon Harrison, a U.S. Postal Service employee, to the scheme. James directed prepaid debit cards and state tax refund checks to be mailed to addresses that Harrison provided from his postal route. Harrison collected the debit cards and checks and provided them to Gregory Slaton who in turn gave them to James and Jacqueline Slaton. In total, James and Slaton filed more than 1,000 federal and state income tax returns that claimed more than $1 million in fraudulent tax refunds.
On Oct. 31, 2013, Harrison was sentenced to serve 111 months in prison. James was sentenced on April 29, 2014, to serve 110 months in prison and Jacqueline Slaton was sentenced on Oct. 23, 2012, to serve 70 months in prison. Gregory Slaton was sentenced on Oct. 28, 2014, to serve 70 months in prison.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Jason H. Poole and Michael C. Boteler of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found at the division website at justice.gov/tax.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-761718 South Florida Residents Sentenced for Their Role in Accessing AT&T and Verizon Subscriber Accounts with Stolen Personal Identifying Information to Purchase iPhonesRead the Press Release
Eighteen South Florida residents were sentenced in connection with their role in a scheme that used fraudulently obtained personal identifying information (PII) of AT&T and Verizon mobile telephone plan subscribers to purchase iPhones as a discounted rate. Three of the individuals sentenced stole the PII from their respective employers, including Verizon.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, United States Secret Service (USSS), and J.D. Patterson, Jr., Director, Miami-Dade Police Department (MDPD), made the announcement.
Between August 2012 and July 2013, Alexander Nicholas Katsabanis, Jr., 23, Dimitris Nicholas Katsabanis, 25, and Christian Fernando Dume, 32, each of Miami, secured and caused co-conspirators, including Daniel Allen Limbacher, 31, Yurien Martinez Gallardo, 34, and Jade Amber Garcia, 27, all of Miami, to secure the PII of mobile telephone plan subscribers, including subscribers with AT&T and Verizon. In particular, Gallardo, who worked for Verizon, Limbacher, who worked for Cellular Sales, and Garcia, who worked for Baptist Hospital, stole from their respective employers PII that was used to facilitate the fraudulent scheme. The customers’ PII included the customer’s name, mobile telephone number, date of birth, and last four digits of such customer’s Social Security Number.
After obtaining the PII, A. Katsabanis, D. Katsabanis, Dume, and their co-conspirators, called, or caused others to call, AT&T and Verizon, and used the unlawfully acquired PII, to add additional users on the existing, legitimate customer accounts without the customer’s knowledge or authorization. These individuals also used the PII to purchase iPhones at a discounted price of approximately $200.00, which discount was only available to customers and their authorized users. The retail price for each iPhone ranged from $550.00 to $649.00.
A. Katsabanis, D. Katsabanis, Dume, and others, also recruited various individuals to serve as “runners.” These “runners” were added as purported “authorized users” on the existing, legitimate accounts of AT&T and Verizon subscribers, and also purchased iPhones at discounted prices. The purchases were made in the Southern District of Florida, as well as, other locations in Florida, California, and Nevada. Christine Eliz Marrero, 24, Dietter Navarro, 32, Keilyn Nicole Gonzalez, 21, Felix Marino Garcia Custodio, 32, Desiree Marie Basanta, 29, Jonathan Gabriel Gonzalez, 24, Dominga Ivett Guerrero, 50, Melissa Rivas, 25, Johan Alvarez, 20, Gustavo Andres Jimenez, 26, Javier Osvaldo Labrador, 26, each of Miami, Florida, Mirelys Reyes, 19, of Hialeah, Florida, Yasael Aquit, 29, now of Tampa, Florida, together with Garcia and Limbacher served as “runners” for the above-described fraudulent scheme. The runners would deliver their purchases to A. Katsabanis, D. Katsabanis, Dume, and others, and were paid approximately $100.00, for each fraudulently acquired iPhone.
During the course of the scheme, approximately 860 Verizon customer accounts were fraudulently accessed in order to purchase approximately 1,200 iPhones at a discounted price. As a result of the scheme, Verizon incurred a loss of more than $400,000 based on the difference between the retail price of the iPhone and the discounted price allowed to its subscribers.
Judge Scola imposed the following sentences:
D. Katsabanis was sentenced 60 months imprisonment; A. Katsabanis Jr. was sentenced to 48 months imprisonment; Dume was sentenced to 78 months imprisonment; Navarro was sentenced to 15 months imprisonment; Limbacher was sentenced to 12 months and one day imprisonment; Marrero was sentenced to two years of probation; Labrador was sentenced to six months imprisonment; K. Gonzalez was sentenced to 20 days imprisonment and two years of probation; Custodio was sentenced to eight months imprisonment; Basanta was sentenced to one year of probation; J. Gonzalez was sentenced to two months imprisonment and two years of probation; Rivas was sentenced to one year of probation; Guerrero was sentenced to two years of probation; Alvarez was sentenced to 10 days imprisonment and two years of probation; Jimenez was sentenced to 30 days imprisonment and two years of probation; Reyes was sentenced to two years of probation; Aquit was sentenced to one year of probation and four months home confinement; and Gallardo was sentenced to four months imprisonment, to be followed by four months of home confinement.
Garcia is scheduled to be sentenced on January 21, 2015, at 8:30 a.m., before Judge Scola.
Noel Sebastian Cisneros, 23, of Homestead, Florida, who was charged with wire fraud and aggravated identity theft for his role in this scheme as an alleged runner, is scheduled to commence trial before Judge Scola, on March 9, 2015, at 9:00 a.m.
Mr. Ferrer commended the investigative efforts of the USSS and MDPD Economic Crimes Bureau. The case is being prosecuted by Assistant U.S. Attorney Sarah J. Schall.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
18 December 2014
Woman Sentenced for Stealing Grandmother's Retirement BenefitsRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Vanessa Scott-Washington, 45, of Leesburg, Georgia, was sentenced on December 17, 2014 to serve 6 months in prison and pay restitution for making false statements to the Railroad Retirement Board. The sentence was handed down by Senior U.S. District Court Judge W. Louis Sands in Albany, Georgia.Ms. Scott-Washington entered a plea of guilty to the charge on August 13, 2014. As a part of her plea agreement, she admitted that on June 27, 2009, she signed a substitution of payee form with the Railroad Retirement Board (RRB) on her grandmother’s retirement benefits agreeing to use the RRB annuity for the benefit of her grandmother and to notify RRB promptly if her grandmother died.
Her grandmother died in May 2010 but Ms. Scott-Washington deceived the RRB into believing that she was still living in order to continue receiving her benefits. Even after the Social Security Administration notified the RRB of her grandmother’s death, Ms. Scott-Washington made a number of calls and sent an e-mail claiming that her grandmother was still alive.
Ms. Scott-Washington also admitted to causing a fraudulent letter, drafted on Bank of America letterhead, to be sent to the RRB stating that her grandmother had been seen in the bank that day and was identified by two forms of identification. The RRB re-commenced the benefits to Ms. Scott-Washington. In all, the RRB paid a total of $13,679 in benefits to her between June 1, 2010 and February 1, 2011.
“When you try to profit by committing fraud, you should keep looking over your shoulder because you are going to get caught,” said U.S. Attorney Michael Moore.
The case was investigated by agents with the Railroad Retirement Board. Assistant United States Attorney Jim Crane prosecuted the case for the Government. Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Wichita Man Pleads Guilty in Armed RobberyRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty Thursday to robbing a drug store in east Wichita, U.S. Attorney Barry Grissom said.
Ryan B. Schmidt, 34, Wichita, Kan., pleaded guilty to one count of commercial robbery and one count of brandishing a firearm during the robbery. In his plea, he admitted that on Sept. 4, 2014, he entered Gessler’s Drug Store at 4817 E. Douglas in Wichita, brandished a gun and told an employee to give him prescription drugs. He fled the store with seven bottles of hydrocodone and three bottles of promethazine in a plastic bag.
Schmidt was involved in a high speed chase with police before hitting a utility pole and another vehicle and coming to a stop.
Sentencing is set for March 9. Both parties have agreed to recommend to the judge a sentence between 14 and 25 years in federal prison.
Grissom commended the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
Wichita Man Pleads Guilty in Armed RobberyRead the Press Release
WICHITA, KAN. – A Wichita man pleaded guilty Thursday to robbing a drug store in east Wichita, U.S. Attorney Barry Grissom said.
Ryan B. Schmidt, 34, Wichita, Kan., pleaded guilty to one count of commercial robbery and one count of brandishing a firearm during the robbery. In his plea, he admitted that on Sept. 4, 2014, he entered Gessler’s Drug Store at 4817 E. Douglas in Wichita, brandished a gun and told an employee to give him prescription drugs. He fled the store with seven bottles of hydrocodone and three bottles of promethazine in a plastic bag.
Schmidt was involved in a high speed chase with police before hitting a utility pole and another vehicle and coming to a stop.
Sentencing is set for March 9. Both parties have agreed to recommend to the judge a sentence between 14 and 25 years in federal prison.
Grissom commended the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
Tygart Valley Inmate Convicted of Threatening the PresidentRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Robert Dale Tasker, 44, an inmate at the Tygart Valley Regional Jail in Belington, West Virginia, was convicted in federal court today for threatening the President, United States Attorney William J. Ihlenfeld, II, announced.
An investigation by the United States Secret Service revealed that in December 2013, while incarcerated at the Tygart Valley Regional Jail, Tasker wrote a letter threatening to kill the President of the United States.
Tasker pled guilty today to one count of “Threats Against the President of the United States.” He faces up to five years in prison and fine of up to $250,000.00. 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.
Assistant U.S. Attorney Randy Bernard prosecuted the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Two Plea Guilty to the Unlawful Employment of AliensRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHNNIE SANTANGELO, III, age 29, of Tangipahoa Parish, and OBER FARFAN BRAVO, age 34, an undocumented alien living in Tangipahoa Parish, pled guilty today to a one-count Bill of Information charging them with a pattern and practice of unlawfully employing aliens.
According to court documents, SANTANGELO and BRAVO knowingly and unlawfully engaged in a pattern and practice of hiring aliens for employment, knowing that said aliens were unauthorized to work in the United States.
SANTANGELO and BRAVO each face a maximum term of six months incarceration and/or a fine of $3,000 for each unauthorized alien or twice the gross loss to any person. U.S. District Judge Jay C. Zainey set sentencing for March 17, 2015.
U.S. Attorney Polite praised the work of the Homeland Security Investigations in investigating this matter. Assistant United States Attorney David Haller is in charge of the prosecution.
Two New Haven Men Involved in Gang-related Drug Ring Are SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that two New Haven men were sentenced yesterday by Senior U.S. District Judge Warren W. Eginton in Bridgeport for their involvement in a gang-related narcotics distribution ring. KENNETH STURDIVANT, also known as “Slay,” 29, was sentenced to 120 months of imprisonment and five years of supervised release, and JAROD AARON, 31, was sentenced to 60 months of imprisonment and four years of supervised release.
According to court documents and statements made in court, this matter stems from an investigation conducted by the FBI New Haven Safe Streets Task Force and the New Haven Police Department that was initiated in the wake of repeated shootings and other violence between members of the Bloods and members of the Grape Street Crips in the Hill section of New Haven. The investigation resulted in the arrests of members of both the Bloods and the Grape Street Crips.
STURDIVANT and AARON were associates of Donald Ogman, who has been identified in court proceedings as a leader of the Grape Street Crips. STURDIVANT, also a member of the Crips, and AARON distributed crack cocaine with Ogman in and around New Haven.
On March 10, 2014, STURDIVANT pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 280 grams or more of cocaine base (“crack cocaine”). On March 21, 2014, AARON pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, 28 grams or more of cocaine base. STURDIVANT and AARON are both previously convicted felons.
A total of 20 individuals were charged as a result of this investigation, and all have pleaded guilty. Ogman awaits sentencing.
This matter was investigated by the FBI’s New Haven Safe Streets Task Force, which includes the New Haven, Hamden and Milford Police Departments, the Connecticut State Police and the State of Connecticut Department of Correction. The investigation has been assisted by the U.S. Marshals Service and the Westerly (R.I.) Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and H. Gordon Hall.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Two Members of Drug Trafficking Organization Admit Conspiring to Sell Heroin in South JerseyRead the Press Release
TRENTON, N.J. – Two members of a large-scale drug trafficking organization have admitted conspiring to distribute hundreds of grams of heroin throughout Monmouth and Ocean counties, U.S. Attorney Paul J. Fishman announced.
Valerie Resendes, 27, of Beachwood, New Jersey, and Rashawn Ramos, 37, of Perth Amboy, New Jersey, both pleaded guilty before U.S. District Judge Peter G. Sheridan in Trenton federal court. Resendes pleaded guilty today to an information charging her with one count of conspiring to distribute heroin. On Dec. 16, 2014, Ramos pleaded guilty to an information charging him with one count of conspiring to distribute 100 grams or more of heroin and 500 grams or more of cocaine.In March 2014, 21 alleged members of the “Britt-Young DTO,” a drug trafficking organization named after its leaders Robert Britt and Rufus Young, were charged by criminal complaint with conspiring to distribute heroin. Of those 21 individuals, 10 have pleaded guilty.
According to documents filed in this case and statements made in court:
Resendes admitted that between February 2013 and March 2014, she conspired with Young and others to distribute heroin in Ocean and Monmouth counties. During this time, Resendes possessed and sold more than 400 grams of heroin.
Ramos admitted that from November 2013 through March 2014, he received numerous packages of heroin and cocaine at his residence in Perth Amboy. The packages were sent from California via the U.S. Mail. Ramos later transferred the packages to another conspirator, who distributed the narcotics to others in New Jersey, including members of the Britt-Young DTO. Altogether, Ramos received at least 1,000 grams of heroin and 1,500 grams of cocaine.
The narcotics conspiracy charge to which Resendes pleaded guilty carries a maximum penalty of 20 years in prison and $1 million fine. The narcotics conspiracy charge to which Ramos pleaded guilty carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $5 million fine. Sentencing for Resendes and Ramos is set for March 10, 2015, and March 24, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, Red Bank Resident Office, under the direction of Special Agent in Charge Aaron T. Ford; officers of the Brick Township Police Department, under the direction of Chief Nils R. Bergquist: and officers of the Toms River Police Department, under the direction of Chief Mitchell Little, with the investigation leading to today’s guilty pleas. He also thanked special agents of the Bureau of Alcohol Tobacco Firearms and Explosives, under the direction of Acting Special Agent in Charge George Belsky; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; officers of the Monmouth County Prosecutor’s Office, under the direction of acting Prosecutor Christopher J. Gramiccioni; and officers of the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, for their work on the investigation. He also thanked the Monmouth County Sheriff’s Office and the Neptune Township, Asbury Park, Marlboro, Long Branch and Freehold police departments for their roles in the case.
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Defense Counsel:
Ramos: Anthony Simonetti Esq., Hightstown, New Jersey
Resendes: Lawrence G. Welle Esq., Wall, New JerseyResendes, Valerie Information
Ramos, Rashawn InformationTwo Florida Women Plead Guilty to Bank Fraud and Aggravated Identity Theft for Check Cashing SchemeRead the Press Release
BOISE – Jennifer A. Gallagher, 31, of Margate, Florida, and Danielle M. Cook, 28, of Pembrooke Pines, Florida, both pleaded guilty today in United States District Court to one count of bank fraud and one count of aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Sentencing for both defendants is set for March 9, 2015, before U.S. District Judge Edward J. Lodge.
Cook and Gallagher were indicted in October 2014, for bank fraud and aggravated identity theft. According to the plea agreements, Cook and Gallagher admitted that, between August 9th and 13th, 2014, they traveled to the District of Idaho to participate in a scheme to defraud financial institutions by cashing stolen checks. In particular, Cook and Gallagher admitted to obtaining stolen checks and driver's licenses, altering their appearances, including by the use of wigs, such that they would closely resemble the photographs on the stolen driver's licenses, then cashing the stolen checks through the far lane of numerous banks in the Treasure Valley. At least twelve such checks were cashed by Cook and Gallagher.
Bank Fraud is punishable by up to 30 years imprisonment, a $1,000,000 fine, a term of supervised release of not more than five years, and a $100 special assessment. Aggravated Identity Theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, a maximum fine of $250,000, and a special assessment of $100.
The case was investigated by the FBI, the Ada County Sheriff's Office, the Meridian Police Department, and the Boise Police Department.
Toledo Man Indicted for Heroin ConspiracyRead the Press Release
A six-count federal indictment was filed charging a Toledo man with conspiracy to possess with intent to distribute a kilogram of heroin, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Lee T. Turner, 29, was indicted on one count of conspiracy to possess with intent to distribute at least one kilogram of heroin, two counts of possession with intent to distribute heroin, two counts of operating a drug house and one count of being a felon in possession of a firearm.
“This defendant used firearms and homes in Toledo neighborhoods in his business the way others might use computers and calculators,” Dettelbach said. “He made his living dealing large amounts of heroin and now must face the consequences.”
“I would personally like to thank the Detectives and Agents from the Toledo Metro Drug Task Force for their hard work on this case,” said Toledo Police Chief William Moton. “The arrest of drug traffickers like Mr. Turner is an important piece in our strategy to significantly reduce the amount of heroin being sold in the Toledo area.”
Turner conspired to with others from November 2103 through Nov. 20, 2014 to possess heroin. Turner used 2830 Powhattan Parkway and 707 Phillips Avenue, both in Toledo, for the unlawful purpose of storing and distributing heroin, according to the indictment.
On Nov. 20, 2014, Turner possessed approximately 1,077 grams of heroin and a 9 mm pistol, despite previous convictions for bank robbery, robbery, kidnapping and other felony convictions, according to court documents.
Prosecutors are seeking to forfeit the two Toledo properties, as well as a 2009 Mercedes, a 1991 Chevrolet and a 2002 Mini Cooper, according to the indictment.
The case is being prosecuted by Assistant U.S. Attorney Alyssa Sterling following an investigation by the Toledo Metro Drug Task Force, which is made up of representatives from the Toledo Police Department, Federal Bureau of Investigation, Lucas County Sheriff’s Office and other law enforcement agencies.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Men Indicted by A Federal Grand Jury for Conspiracy to Distribute over 10 Pounds of HeroinRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Julio Perez, 32; Rafael Legorreta, 34, both of Bakersfield; and Francisco Rivera, 29 of Palmdale, charging them with conspiracy to distribute heroin and possession with intent to distribute heroin, United States Attorney Benjamin B. Wagner announced.
According to court documents, on December 2, 2014, law enforcement officers conducted an authorized search of Perez’s home, and found Perez, Legorreta, and Rivera in the locked basement of the residence with approximately 12 lbs. of heroin, packaging material, zip lock bags, digital scales, metal strainers, a blender, drug paraphernalia, and other items.
This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office Gang Suppression Unit. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Individuals Indicted in Federal Feeding Program ConspiracyRead the Press Release
LITTLE ROCK – A former and one current Arkansas Department of Human Services (DHS) employee and one feeding program sponsor have been indicted for their roles in a conspiracy to steal federal money. Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced unsealing of an indictment and the arrest Thursday morning of Gladys Elise King, age 34, of England; Tonique D. Hatton, age 37 of North Little Rock; and Jacqueline D. Mills, age 39 of Helena on a 76-count Indictment.
The Indictment, returned by a Federal Grand Jury on December 11, 2014, charges Hatton, King, and Mills with conspiracy to fraudulently obtain United States Department of Agriculture (USDA) program funds. Additionally, Mills is charged with wire fraud, paying bribes, and engaging in money laundering. King and Hatton are also charged with accepting bribes.
According to the indictment, the USDA funds the Child and Adult Care Feeding Program, which includes an at-risk afterschool component. USDA also funds the Summer Food Service Program. In Arkansas, the feeding programs are administered by DHS. Sponsors who want to participate in the feeding programs must submit an application to DHS for approval. Once approved, they can provide meals as part of the feeding program and be reimbursed based on the number of eligible meals they serve.
The indictment states that Tonique Hatton and Gladys King worked for DHS, and part of their job was to determine eligibility of sponsors to participate in the feeding programs. Mills operated as a sponsor for feeding program. Hatton and King were responsible for approving Mills’ programs at various times.
The indictment alleges that Mills made bribe payments to DHS employees Hatton and King. In exchange for those bribes, Mills would submit inflated numbers of meals purportedly served from her sites. Hatton and King would provide protection from DHS scrutiny.
“As alleged in the Indictment, these three individuals and others were literally stealing money that was supposed to be used to feed poor and hungry children,” stated Thyer. “While I am pleased that we were able to uncover and prosecute this behavior, I am at the same time sickened that it could happen at all.”
“The Secret Service is committed to aggressively investigating those associated with this type of financially motivated crime,” stated Special Agent in Charge Brian Marr. “To steal from the mouths of hungry children in this state is unacceptable.”
“This crime directly targeted funds designated to feed disadvantaged children in Arkansas,” stated David T. Resch, Special Agent in Charge of the Little Rock FBI. “The partnership of the IRS, USDA, USSS and the FBI are committed to investigating and prosecuting these crimes to the fullest extent of the law.”
Special Agent in Charge Mary L. Lewis, Southwest Region of the United States Department of Agriculture – Office of the Inspector General stated, “I want to thank the U.S. Attorney’s Office, OIG special agents, and our investigative partners for their hard work on this investigation. When the integrity of nutrition programs for needy children is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.”
“These programs are designed to ensure financially disadvantaged children are provided with good nutritious meals throughout the year, they are not designed to enrich the program administrators,” stated Christopher A. Henry, Special Agent in Charge of the IRS- Criminal Investigation Nashville Field Office. “Individuals who engage in this type of fraud to line their own pockets with public funds should know they will not go undetected and will be held accountable.”
The statutory penalty for wire fraud and conspiracy to commit wire fraud is not more than 20 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release. The statutory penalty for receipt of bribes, paying bribes, and money laundering is not more than 10 years imprisonment, not more than a $250,000 fine, or both, and not more than 3 years supervised release.
The investigation is ongoing and is conducted by the United States Secret Service, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, United States Department of Agriculture – Office of the Inspector General, and United States Marshals Service. Assisting with the arrests this morning were deputies from the Lonoke County Sheriff’s Office and officers and detectives from the North Little Rock Police Department. The case is being prosecuted by Assistant United States Attorneys Jana K. Harris and Allison W. Bragg.
An indictment contains only allegations. Defendants are presumed innocent until proven guilty.
Three Indicted in Conspiracy to Distribute Oxycodone Through Fraudulent PrescriptionsRead the Press Release
BOSTON – Three individuals were charged today in U.S. District Court in Boston with distributing oxycodone via false prescriptions.
Leslie Credle, a/k/a Chanel, 48, of Jamaica Plain; William Ford, a/k/a Billy, 33, of Winthrop; and Lisette Carrasquillo, a/k/a Jacqueline, 37, of Allston were indicted on conspiracy to possess oxycodone with intent to distribute and conspiracy to obtain possession of oxycodone by misrepresentation, fraud, forgery, deception, or subterfuge. On June 30, 2014, the defendants were originally charged by criminal complaint at which time Credle and Ford were arrested and have since been held in custody. Carrasquillo was arrested on July 1, 2014 and was released on bond and pre-trial conditions.
According to court documents, beginning in November 2013, DEA investigators detected the diversion of a large amount of Oxycodone pills through fraudulent prescriptions filled at various pharmacies in eastern Massachusetts. Through the investigation, law enforcement discovered that Credle forged multiple prescriptions, after which Ford, Carrasquillo, and others passed the created prescriptions for Oxycodone at Boston-area pharmacies.
For Credle, the charging statute provides a sentence of no greater than 30 years in prison, a lifetime of supervised release, and a fine $2 million. For Ford and Carrasquillo, the charging statute provides a sentence of no greater than 20 years in prison, a lifetime of supervised release, and a fine of $1 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division made the announcement today. The case was investigated by the DEA, Massachusetts State Police, Billerica Police Department, Boston Police Department, Dedham Police Department, Quincy Police Department, and Waltham Police Department; and in coordination with the Norfolk County District Attorney’s Office and the Suffolk County District Attorney’s Office. The case is being prosecuted by Michael I. Yoon of Ortiz’s Organized Crime Drug Enforcement Task Force.The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Three Colorado River Indian Tribes (crit) Tribal Members Sentenced to Federal Prison for RobberyRead the Press Release
PHOENIX – On Dec. 17, 2014, Aaron Keith Drennan, 21, of Parker, Ariz., was sentenced by Judge Roslyn O. Silver to 57 months in prison, followed by three years of supervised release. Drennan previously pleaded guilty to robbery.
On Dec. 15, 2014, co-defendant, Mickey Roy Anderson, Sr., 26, of Parker, Ariz. was sentenced by U.S. District Judge Roslyn O. Silverto 60 months in prison, followed by three years of supervised release, and co-defendant Joshua Ryan Mike, Sr., 22, of Parker, Ariz., was sentenced to 60 months in prison to run consecutive to the 21-month sentence imposed in CR-14-0758-PHX-ROS. Co-defendants Anderson and Mike also previously pleaded guilty to robbery. Mike also pleaded guilty to assault resulting in serious bodily injury in another case before U.S. District Judge Roslyn O. Silver.
According to court documents, on March 9, 2014, Drennan, Anderson, and Mike were being housed as inmates in a community cell at the Colorado River Indian Tribes Adult Detention Center. The victim, a detention officer at the facility, opened their cell door to drop off laundry and was assaulted by Mike. As Mike assaulted the detention officer, Drennan and Anderson took the victim’s cell phone and the keys to the detention facility, and all three subsequently fled from the facility.
According to the plea agreement in Mike’s assault case, on March 1, 2014, Mike assaulted another inmate at the La Paz County Jail by striking him repeatedly in the face causing the victim to sustain serious bodily injury, which included fractures to the cheekbones and jaw.
The investigation in these cases was conducted by the Federal Bureau of Investigation, the Colorado River Indian Tribes Police Department, and the La Paz County Sheriff’s Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.CASE NUMBERS: CR-14-0370-PHX-ROS and CR-14-0758-PHX-ROS
RELEASE NUMBER: 2014-076_Drennan et al.For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Texas Business Executive Sentenced to Prison for Illegally Selling Oxycodone on Silk RoadRead the Press Release
Orlando, FL – Senior U.S. District Judge G. Kendall Sharp has sentenced Matthew Jones, a/k/a “Caligirl,” “Dynamite2k,” “Dynamite,” “Tyler Zeddai,” and “Mateo Jones” (44, Dallas, Texas) to five years and ten months in federal prison for illegally distributing controlled substances. He pleaded guilty on August 26, 2014.
According to court documents, while Jones was working as the Chief Technology Officer for a software consulting company in Dallas, he operated as the vendor “Caligirl” on the Silk Road drug marketplace. Silk Road operated as an online criminal marketplace designed to enable its users to buy and sell drugs and other illegal goods and services anonymously, outside the reach of law enforcement.
Between April 10, 2013, and September 9, 2013, Caligirl’s Silk Road account completed 685 finalized sales of controlled substances. Beginning on July 11, 2013, through March 20, 2014, Drug Enforcement Administration agents purchased and seized more than 400 Oxycodone tablets and more than 900 Hydrocodone tablets from Jones. Jones shipped the drugs from Texas to Central Florida. His sales placed him in the top 5% of all Silk Road vendors.
Authorities arrested Jones while he was travelling back to the United States from Colombia. At the time of his arrest, he was in possession of approximately 8,500 Oxycodone pills. Simultaneous with his arrest, agents executed a federal search warrant at his Texas residence, where they recovered approximately $75,000 in cash and seized a variety of controlled substances, including Oxycodone, Hydrocodone, MDMA, Methamphetamine, Cocaine, and Hashish. A drug lab was also located in the residence.
In addition to operating on Silk Road, Jones conducted his illicit drug trafficking business utilizing an encrypted and anonymized peer-to-peer program.
This case was investigated by the Drug Enforcement Administration’s Orlando District Office, with assistance from the United States Postal Inspection Service in Dallas, Texas. It was prosecuted by Assistant United States Attorney David Haas.
Ten Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering ConspiracyRead the Press Release
Final 10 of 36 Convicted and Sentenced
Ten Aryan Brotherhood of Texas (ABT) gang members and associates were sentenced to prison this week for their roles in the violent ABT enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Today, Michael Richard Lamphere, 56, of Houston, Texas, Glen Ray Millican Jr., 41, of Houston, Texas, and Rebecca Johnson Cropp, 46, of Dallas, Texas, were sentenced to serve respective terms of 240 months, 120 months and 36 months in federal prison by U.S. District Judge Sim Lake in the Southern District of Texas. Earlier this week, William David Maynard, 44, of Houston, Texas, Sammy Keith Shipman, 32, of Houston, Texas, Chad Ray Folmsbee, 32, of Houston, Texas, David Orlando Roberts, 36, of Houston, Texas, Justin Christopher Northrup, 29, of Houston, Texas, Tammy Melissa Wall, 45, of Otto, North Carolina, and Benjamin Troy Johnson, 43, of Corpus Christi, Texas, were each sentenced to serve respective terms of 262 months, 188 months, 140 months, 135 months, 130 months, 72 months and 36 months in federal prison.
According to information presented in court, the 10 defendants were admitted members and associates of the ABT, a powerful race-based organization that operates inside and outside of state and federal prisons throughout Texas and the United States. Along with other ABT gang members and associates, they agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
The ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism, but over time, the ABT has expanded its criminal enterprise to include illegal activities for profit, according to court records.
In order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, arson, assault, robbery and threats against those who violated the rules or posed a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
The defendants sentenced this week represent the final 10 of 36 defendants convicted of conducting racketeering activity through the ABT criminal enterprise, among other charges.
This Organized Crime Drug Enforcement Task Force case was investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case was prosecuted by Trial Attorney David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ed Gallagher and Tim Braley of the Southern District of Texas.
- Ten Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering Conspiracy
Springfield Resident Sentenced in Child Pornography OffensesRead the Press Release
Defendant Was On State Supervision for Prior Contact Offense
David Rivera, U.S. Attorney for the Middle District of Tennessee, announces that Jason Mikula, 36, of Springfield, Tennessee, was sentenced by United States District Court Judge Kevin Sharp to 20 years in prison. Mikula had pleaded guilty to receipt and possession two child pornography offenses on August 28, 2014.
Mikula was convicted in Nashville, Tennessee, in August 2005 of Aggravated Sexual Battery of a very young child and multiple counts of Sexual Exploitation of a Minor. After serving time in the state penitentiary, he was released in August 2012 onto lifetime supervision with the state. Within seven months of release, however, he had collected a number of sexually explicit images involving children, including images of violence perpetrated against very young children.
Upon his release from federal prison, Mikula will be placed on supervised release for fifteen years and will be required to participate in sex offender treatment, among other conditions.
The defendant also was ordered to pay restitution in the amount of $9300 to a minor victim depicted in some of the images of sexual exploitation he had collected.
This matter was investigated by the Federal Bureau of Investigation and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
Solano County Violent Gang Safe Streets Task Force Efforts Result in Three Federal Indictments for Firearm ChargesRead the Press Release
SSACRAMENTO, Calif. — Michael Quesenberry, 26, of Sacramento; Ignacio Hernandez, 37, of Vallejo; and Rahson Woods, 35, of Vallejo, were charged today by a federal grand jury in separate indictments with being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
Each defendant was found to be in possession of a firearm after having been convicted of one or more felonies. Hernandez was also charged with possession with intent to distribute methamphetamine.
If convicted, each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
These cases are the products of investigations by the Solano County Violent Gang Safe Streets Task Force, which includes the Federal Bureau of Investigation, the Solano County Sheriff’s Office, Vallejo Police Department, the California Highway Patrol, and the Solano County District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye is prosecuting the cases.
The Solano County Violent Gang Safe Streets Task Force is part of the FBI-sponsored Safe Streets Initiative that combines the efforts of federal, state, and local agencies in an effort to stop violent felons from endangering our communities.
Six Fort Worth, Texas, Residents Indicted for Walgreens Burglaries in Texas and OklahomaRead the Press Release
Oklahoma City, Oklahoma – Hylon Joshua Alford-Solomon (23), James Richard Wooden (24), Chris Allen Williams, Jr. (24), Kenneth Wayne Tolbert (23), Kendrick Dwight Marshall (28), and Christopher Benjamin Blanton (21), all from Fort Worth, Texas, were indicted by a federal grand jury for the burglary of Walgreens Pharmacies in Texas and Oklahoma announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The indictment alleges in count one that from November 2013 through on or about July 19, 2014, the six defendants conspired to burglarize closed Walgreens Pharmacies in Woodway and Southlake, Texas, and Mustang, Oklahoma, in order to steal Hydrocodone, Alprazolam (Xanax), and Promethazine with Codeine cough syrup, all highly abused controlled substances. A second count charges Alford-Solomon, Wooden, Williams, and Tolbert with traveling from Texas to Mustang, Oklahoma on July 19, 2014, and breaking into the Walgreens Pharmacy at 112 East Highway 152. Each defendant faces up to 10 years in prison for the conspiracy charge. If convicted, the defendants will be required to pay restitution to Walgreens in an amount to be determined by the court. Further, if any member of the public knows of the whereabouts of Kendrick Dwight Marshall, they are asked to contact law enforcement.
This case is the result of an investigation by the Drug Enforcement Administration; the Mustang, Oklahoma City, El Reno, Fort Worth, Woodway, Southlake, and Denton Police Departments; and Walgreens Loss Prevention. It is being prosecuted by Assistant U.S. Attorneys Matt Dillon and Mark A.Yancey. The public is reminded that each defendant is presumed innocent until otherwise proven guilty beyond a reasonable doubt.
Sentencings for December 12 - December 18, 2014Read the Press Release
Kara Harper, 31, of Green River, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 18, 2014, for conspiracy to possess with intent to distribute heroin resulting in death. Harper was arrested in Green River, Wyoming. She received 72 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Sweetwater County Sheriff’s Office, the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Gregg T. Denny, 43, of Rawlins, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 17, 2014, for conspiracy to possess with intent to distribute, and to distribute, more than 500 grams of methamphetamine and for conspiracy to launder money. Denny was arrested in Cheyenne, Wyoming. He received 120 months imprisonment, to be followed by eight years of supervised release, and was ordered to pay a $500.00 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Steven D. Webb, 44, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on December 17, 2014, for possession of child pornography. Webb was arrested in Cheyenne, Wyoming. He received 36 months imprisonment, to be followed by 15 years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $1,250.00. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Ernie Paul Montoya, Sr., 68, of Coalville, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 16, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute, more than 500 grams of methamphetamine; one count of possession with intent to distribute methamphetamine; and one count of conspiracy to launder money. Montoya was arrested in Coalville, Utah. He received 87 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $700.00 fine and a $300.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
David Puhl, 21, of Nunn, Colorado, was sentenced by Federal District Court Judge Alan B. Johnson on December 16, 2014, for conspiracy to possess with intent to distribute, and to distribute, more than 50 grams of methamphetamine. Puhl was arrested in Ault, Colorado. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Christopher Withrow, 44, of Sheridan, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on December 16, 2014, for conspiracy to possess with intent to distribute, and to distribute, more than 50 grams of methamphetamine. Withrow was arrested in Sheridan, Wyoming. He received 70 months of imprisonment, to be followed by four years of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Delza K. McKannan, 49, of Gillette, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on December 12, 2014, for conspiracy to possess with intent to distribute, and to distribute, more than 50 grams of methamphetamine and conspiracy to launder money. McKannan was arrested in Gillette, Wyoming. She received 84 months imprisonment, to be followed by six years of supervised release, and was ordered to pay a $500.00 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Sentencing Hearings Completed in $600,000 Stolen Identity Tax Refund Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – Five individuals involved in a tax refund fraud scheme which used stolen and fraudulent identifying information of hundreds of individuals and businesses to defraud the Internal Revenue Service of nearly $600,000 have been sentenced in U.S. District Court in Providence, announced United States Attorney Peter F. Neronha.
Government reports indicate that losses due to Stolen Identity Refund Fraud – commonly referred to as SIRF – totals in the billions of dollars. In the last fiscal year alone (2014), the Department of Justice and U.S. Attorney’s offices have charged approximately 896 defendants for their alleged involvement in SIRF schemes.
This SIRF investigation began in January 2013, when Homeland Security Investigations (HSI) agents in Boston conducted a routine border search of Jairo Morales, 29, of Providence, who was flying in from the Dominican Republic. In a laptop computer, HSI agents identified evidence consistent with a tax refund fraud scheme.
According to court records and information presented to the court, an investigation by agents from Internal Revenue Service Criminal Investigation, U.S. Secret Service and HSI determined that Morales and Julianna Martins, 45, of Providence, orchestrated a stolen identity tax refund scheme which resulted in the filing of false federal income tax returns using stolen personal identity information of hundreds of individuals from Puerto Rico and fictitious W-2 forms from various companies. Fraudulently obtained tax refund checks, ranging from approximately $3,000 to $10,000, were sent to multiple Providence addresses under the control of Morales and Martins.
The investigation revealed that Morales, Martins, Lucia Morales, 55, of Providence, and Casimiro Santos, 36, of Providence, and others, deposited United States Treasury checks totaling in excess of $596,000 into various bank accounts controlled by the defendants.
Additionally, according to court documents and information presented to the court, Maria Paulino, 25, of Providence, a bank teller, assisted Martins in opening bank accounts using fraudulent identity information and negotiated checks on behalf of Morales, Martins, and their associates.
Jairo Morales and Julianna Martins pleaded guilty in March 2014 to conspiracy, theft of government property and aggravated identity theft. They were sentenced by U.S. District Court Judge John J. McConnell, Jr., to 48 months in federal prison to be followed by 3 years supervised release, and ordered to pay restitution in the amount of $385,533.58. Morales was sentenced on June 24, 2014. Martins was sentenced on September 29, 2014.
Casimiro Santos pleaded guilty on May 12, 2014, to theft of government property and aggravated identity theft. Santos was sentenced on Wednesday by U.S. District Court Judge John J. McConnell, Jr., to 24 months and one day in federal prison to be followed by 3 years supervised release, and ordered to pay restitution in the amount of $211,141.71.
Maria Paulino pleaded guilty on January 19, 2013 to theft of government property. She was sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 24, 2014, to 3 years probation – the first 6 months to be served in home confinement with electronic monitoring, and ordered to pay restitution in the amount of $92,970.14.
Lucia Morales pleaded guilty on March 31, 2014 to theft of government property. Morales was sentenced by U.S. District Court Judge John J. McConnell, Jr., on June 26, 2014, to 3 years probation and ordered to pay restitution in the amount of $82,183.10.
The cases were prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.
The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Savannah Man Sentenced on False Statement ChargeRead the Press Release
Jackson, Tenn. – Douglas Earl McCasland, 48, of Savannah, Tennessee, was sentenced Monday to serve six months in federal prison after pleading guilty to one count of making false statements in violation of 18 U.S.C. §1001, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the facts presented in the indictment and revealed during sentencing, McCasland, who was certified by the State of Tennessee as a Methamphetamine Remediation Contractor, charged his victims a fee for cleaning up homes that had been contaminated by methamphetamine manufacturing. McCasland knew that after remediation, properties must be certified by an Industrial Hygienist prior to rehabitation. McCasland was not an Industrial Hygienist, but he issued false Certificates of Fitness on the properties.
In addition to the prison sentence, Chief United States District Judge J. Daniel Breen ordered McCasland to serve three years of supervised release and pay restitution in the amount of $102,225 to the victims. The restitution is to be paid at 15% of McCasland's income, or $100 per month. There is no parole in the federal prison system.
This investigation was conducted by the Tennessee Department of Environmental Quality; U.S. Postal Inspection Service; and the Environmental Protection Agency--Office of Inspector General. Assistant U.S. Attorney Victor L. Ivy represented the government.
Santa Fe Man Pleads Guilty to Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Andre Lewis, 33, of Santa Fe, N.M., pleaded guilty this morning to federal tax offenses, announced Acting U.S. Attorney Damon P. Martinez and Dawn Mertz, Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Lewis was arrested in May 2014, on an eleven-count indictment. Count 1 of the indictment charged Lewis with conspiracy to defraud the IRS, and Count 2 charged him with making a materially false statement to a federal officer. Counts 3 through 11 charged Lewis with preparing and aiding and abetting the preparation and filing of false tax returns. Lewis committed the offenses between Feb. 2009 and Aug. 2009 in Bernalillo, County, N.M.According to the indictment, from Feb. to July 2009, Lewis conspired with others to defraud the IRS by preparing and filing fraudulent claims for tax refunds. Lewis and his co-conspirators perpetuated the scheme by obtaining the names, identifiers and W-2 Forms for federal taxpayers, and using that information to electronically file federal income tax returns included either false claims for the First Time Home Buyer Credit or false withholding information. Lewis and his conspirators thus obtained tax refunds to which they were not entitled from the IRS.
This morning, Lewis entered guilty pleas to Counts 1 and 3 of the indictment charging him with conspiracy and aiding and abetting the preparation of a false and fraudulent tax return. In his plea agreement, Lewis admitted filing a false tax return in Feb. 2009, by which he fraudulently obtained $16,024.14 from the IRS by misrepresenting his tax withholdings. Lewis also admitted that in 2009 he was involved in filing at least ten false tax returns and fraudulently receiving refunds based on those returns. In his plea agreement, Lewis admitted defrauding the IRS of an aggregate of $118,470.76 through this unlawful scheme.
Lewis has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Lewis faces a statutory maximum penalty of five years on Count 1 and a statutory maximum penalty of three years on Count 3.
Two of Lewis’s co-conspirators previously have entered guilty pleas to federal tax charges in related cases. Jerry Gurule, 33, of Albuquerque, N.M., pled guilty on July 24, 2014, to assisting in the preparation of the preparation and filing of a false tax return. Gurule was sentenced on Dec. 10, 2014, to four years of probation with eight months of home confinement and was ordered to pay $69,070.19 in restitution to the IRS. Also on July 24, 2014, Lawrence Jaramillo, 33, of Bosque Farms, N.M., pled guilty to conspiracy and to assisting in the preparation of the preparation and filing of a false tax return. Jaramillo is scheduled for sentencing on Jan. 13, 2015.
These cases were investigated by IRS Criminal Investigation in Albuquerque and are being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Rochester Man Sentenced to for Online Enticement of A MinorRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that William Miller, 53, of Rochester, NY, who was convicted of online enticement of a minor, was sentenced to 168 months in prison and 10 years supervised release by U.S. District Court Judge David G. Larimer.“This case illustrates the threats facing our children by people known to the family,” said U.S. Attorney Hochul. “At the same time, it demonstrates the ability of law enforcement to detect crime and then solve it. We will continue to use all of the tools available to us in order to help protect children from violent predators such as this defendant.”
Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that in August of 2012, Rochester Police responded to the defendant’s Electric Avenue Apartment after Miller claimed to be the victim of a crime. Inside the apartment, officers saw cases of untaxed cigarettes stacked all over, which led them to obtain a search warrant. During their search, officers found a digital camera which contained sexually explicit photos and videos of a young girl which appeared to be taken in Miller’s apartment. At that point, Police contacted the FBI Child Exploitation Task Force for investigative assistance.
Federal agents joined the investigation and identified the child depicted in the sexually explicit videos as a 12 year old girl known to the defendant. Interviews with the child and her mother determined that Miller used threats and bribes to get the child to allow him to produce this material. Federal investigators also determined that Miller used his cellphone to arrange for meetings with the child at which he would produce sexually explicit videos and photos.
At sentencing, Judge Larimer called the defendant a danger to the community. The Judge also referenced the fact that Miller had 80 prior criminal convictions over the past several decades, saying that the defendant should have learned something during all that time. The Court noted that Miller was on probation in Rochester City Court at the time he committed the federal child exploitation crimes for which he was convicted.
The sentencing is the culmination of an investigation on the part of Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli; and Special Agents of the Federal Bureau of Investigation, Child Exploitation Task Force.
RMD Holdings, LTD D/B/A Nationwide Fence and Supply Co. Settles Alleged False Claims Act Violations Involving Disadvantaged Business Enterprise Requirements in Federally Funded ProjectsRead the Press Release
- Alleged Violations Involved Federally Funded Transportation Projects in Kentucky, Indiana, Illinois, Georgia and New York
LOUISVILLE, Ky. – RMD Holdings, Ltd d/b/a Nationwide Fence and Supply Co. (Nationwide) agreed to pay a $1,750,000 to settle allegations that it circumvented the Disadvantaged Business Enterprise requirements in federally funded construction projects. Of that amount, $416,000 will be paid pursuant to a stipulation of settlement being submitted for Court approval today by the U.S. Attorney’s Office for the Southern District of New York.
Today’s announcement was made by Acting U.S. Attorney John E. Kuhn, Jr., the U.S. Department of Transportation Office of Inspector General (DOT-OIG) and the Federal Highway Administration’s Office of Civil Rights.
“The Disadvantaged Business Enterprise program was created to ensure a level playing field for minority-owned and women-owned companies in federally funded transportation projects,” stated Acting U.S. Attorney Kuhn. “By circumventing the law, RMD undermined the goal of assisting disadvantaged companies in a market where the federal government invests many millions of dollars.”
According to the settlement agreement, beginning in 2008, the DOT-OIG began investigating Nationwide for improperly utilizing Disadvantaged Business Enterprise (DBE) companies as a pass through in order to satisfy the DBE requirements specified in federally funded construction projects. The projects were performed between October 20, 2006, through July 16, 2010, in Kentucky, Indiana, Illinois, Georgia and New York and most involved the installation of guardrails, security fencing, and cable barriers along interstates. In Kentucky, Nationwide installed high tension cable barriers in Barren, Bullitt, Hart and Jefferson Counties in June of 2008.
At the time, Nationwide was co-owned by two brothers: Micheal DeMil and Robert DeMil. The company was a specialty construction group that conducted business in 33 states with its principal office located in Chesterfield Township, Michigan. Many of the transportation projects on which Nationwide worked were funded in whole or in part by the United States, and each project required a certain percentage of DBE participation. Nationwide was not a certified DBE.
The DBE program generally requires that recipients of federal highway funds establish a program to assist women owned or minority owned businesses to compete for work on federally funded construction projects. Recipients of these funds often accomplish this goal by requiring that each construction project include a certain percentage of participation by a DBE company. This percentage can be met by contractors utilizing DBE subcontractors to either perform work on the project or to supply materials.
The United States contends that, during the period from October 20, 2006, through July 16, 2010, Nationwide misrepresented how it utilized Sallie’s Wholesale Construction, Inc. (a DBE company) and Access Control Company, Inc. (a DBE). Nationwide claimed that Sallie’s Wholesale Construction, Inc. (SWC) was a DBE providing materials on projects in Indiana, Kentucky and Georgia. In reality, SWC was not acting as a material supplier and did not have in its possession those materials Nationwide needed for its projects. Instead, Nationwide would negotiate a price with non-DBE material suppliers and then request SWC to contract with the non-DBE material supplier so that it appeared SWC was furnishing the materials to Nationwide=s job site. SWC never touched the material purchased from the true material suppliers and was simply acting as an extra participant in the procurement of materials. In the case of Access Control Company, Inc. (Access), Nationwide represented that Access would furnish materials on a project in Illinois when, in fact, Access never provided materials and never agreed to act as a pass-through for materials. The government’s investigation did not find any wrongdoing by Access and Access cooperated fully with the government’s investigation.
Nationwide has also agreed to enter into an administrative settlement and three year compliance agreement with the United States Department of Transportation, Federal Highway Administration (FHWA). This agreement requires Nationwide, in part, to undertake remedial measures including: (1) the adoption and implementation of an Ethics Code and Corporate Compliance Program; (2) the appointment of a Corporate Compliance Officer ; and (3) the retention of an independent Monitor to evaluate the Company's performance of this Agreement and to submit periodic reports directly to the FHWA.
This settlement agreement is neither an admission of liability by Nationwide or its co-owners, nor a concession by the United States that its claims are not well founded.
This case was investigated by the U.S. Attorney’s Offices for the Western District of Kentucky, Northern District of Georgia, Middle District of Georgia, Southern District of Georgia, Southern District of Indiana, Central District of Illinois, and the Southern District of New York. The matter was prosecuted by Assistant United States Attorney Benjamin S. Schecter in the Western District of Kentucky, Trial Attorney Kelley Hauser with the U.S. Department of Justice, Civil Division, Commercial Litigation Branch, Frauds Section, The U.S. Attorney’s Office for the Southern District of New York and was investigated by U.S. Department of Transportation Office of Inspector General (DOT-OIG) and the Federal Highway Administration’s Office of Civil Rights.
President of Two Minnesota Nonprofits Pleads Guilty to Mail FraudRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of ROBERTA BARNES, 57, for using her nonprofit organizations to defraud two Minnesota state agencies, stealing more than $460,000 in state and federal grant funds. The defendant pleaded guilty on December 15, 2014, before Judge John R. Tunheim in U.S. District Court in Minneapolis, Minn., to one count of Mail Fraud.
“This defendant stole from grant programs designed to help underprivileged communities in Minnesota,” said Assistant U.S. Attorney Benjamin Langner. “She used the guise of two nonprofit entities to steal money that could have been used for philanthropic purposes in order to enrich herself.”
According to her guilty plea and documents filed in court, BARNES was the president of two St. Paul-based nonprofit organizations, Agape House for Mothers (“Agape”) and Sierra Young Family Institute (“Sierra”). Through Agape and Sierra, BARNES obtained approximately $1.7 million in grant funds offered by the Minnesota Department of Health (“MDH”) and the Minnesota Housing Finance Agency (“MHFA”).
From 2002 until May 2012, BARNES applied for and received grant money from MDH and MHFA through promises that the funds would be used for philanthropic purposes such as combating teen pregnancy and providing housing assistance to needy families. Instead, BARNES intended to and did use a significant portion of the grant funds to make mortgage payments, car payments and other unauthorized payments to herself and her family.
Between 2002 and 2012, BARNES, on behalf of Agape and Sierra, obtained a series of grants from MDH for the purported purpose of operating teen pregnancy programs for minority populations in the St. Paul area. In 2008, BARNES, on behalf of Sierra, applied for and received a grant from MHFA, falsely representing that the funds would be used for finance programs designed to provide assistance to households experiencing long-term homelessness.
According to her guilty plea and documents filed in court, BARNES spent more than $460,000 of the grant funds on personal expenses for herself and her family; she attempted to conceal her fraud scheme by creating fraudulent invoices that reflected false expenses incurred by Agape and Sierra.
This case is the result of an investigation conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services.
Assistant U.S. Attorneys Benjamin Langner is prosecuting the case.
Defendant Information: ROBERTA BARNES, 57
St. Paul, Minn.
Convicted: • Mail Fraud, 1 countPlacerville Business Owner Sentenced for Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — United States District Judge Morrison C. England Jr. sentenced Thomas W. Stringfellow, 55, of Placerville, today to 18 months in prison and ordered to pay $687,182 in restitution for willfully making false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2006 through 2010, Stringfellow underreported his business income on tax returns by more than $1.1 million, and underreported his personal income on tax returns by more than $1 million. Stringfellow owned New Horizon Painting, and rather than depositing all of the business checks into the appropriate accounts, he cashed some of the checks and did not report those amounts as income. In total, Stringfellow’s underreporting of his business income and his personal income led to a tax loss of more than $687,000.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Jean M. Hobler prosecuted the case.Pine Hill Man Sentenced to Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Joseph Paddock, 21, an enrolled member of the Navajo Nation who resides in Pine Hill, N.M., was sentenced this morning to a year in federal prison followed by three years of supervised release.
Paddock was arrested on April 28, 2014, on a criminal complaint charging him with assault, and subsequently was charged in an indictment with assault with a dangerous weapon. According to court filings, Paddock assaulted the victim, a security guard employed by the Ramah Navajo School Board, by cutting him with a knife on April 18, 2014, at a location within the Navajo Indian Reservation.
On Aug. 27, 2014, Paddock entered a guilty plea to the indictment and admitted that on April 18, 2014, he assaulted the victim with a knife with the intent of causing bodily harm. Paddock acknowledged that as a result of the assault, the victim sustained injuries that required multiple stitches.
This case was investigated by the Ramah Navajo Police Department and was prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
Pennsylvania Man Charged in White Plains Federal Court with Retaliating Against A Witness and StalkingRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced today the arrest of KRIS SERGENTAKIS for retaliating against a witness and stalking. The Complaint alleges that SERGENTAKIS has engaged in a scheme to retaliate against, stalk, and harass an individual (“Victim-1”) who previously provided law enforcement with information relating to SERGENTAKIS’s commission of federal offenses, for which SERGENTAKIS was previously convicted and served a federal prison sentence. SERGENTAKIS was arrested this morning in Pennsylvania and is expected to be presented today in federal court in Allentown, Pennsylvania, before a United States Magistrate Judge.
Manhattan U.S. Attorney Bharara said: “As alleged, after Kris Sergentakis was reported for engaging in kickbacks, convicted, and sentenced to a prison term, he began a campaign of retaliation and stalking in an effort to destroy the life of the former colleague who exposed his criminal conduct. There will be zero tolerance from this Office and our law enforcement partners for witness intimidation and harassment. The criminal justice system relies on witnesses, and they should not suffer for being good citizens who come forward to ensure justice is done.”
USPIS Inspector-in-Charge Bartlett said: “Sergentakis viciously and knowingly attempted to destroy his victim’s reputation and livelihood through letters, emails, and the internet. Law enforcement has a responsibility to protect witnesses against intimidation and will bring to justice anyone who engages in these types of slanderous attacks.”
According to the Complaint unsealed today in White Plains federal court:
SERGENTAKIS was formerly employed in the graphics department of The Leukemia and Lymphoma Society (“LLS”), a charitable non-profit organization that funds cancer research and is headquartered in White Plains. In 2006, SERGENTAKIS pled guilty in Manhattan federal court to commercial bribery and mail fraud charges arising out of his participation in a kickback scheme in which he allocated certain of LLS’s printing contracts to certain vendors in return for payments from the vendors. During the course of that investigation and prosecution, Victim-1, who was LLS’s Chief Financial Officer at the time and subsequently became its Chief Executive Officer, provided information to law enforcement relating to SERGENTAKIS’s conduct at LLS and his violations of federal law.
From at least 2007 to the present, SERGENTAKIS has harassed and threatened Victim-1 through letters, emails, and the Internet. SERGENTAKIS began by sending multiple letters to Victim-1 and other current and former employees at LLS. For example, in 2007, SERGENTAKIS sent a letter to Victim-1 stating, in part, that “[e]very person on the planet will know that you are a dangerous child molester,” and “I’ll be everywhere you are warning people.” SERGENTAKIS’s letter to Victim-1 further stated that “when I am released I will be outside where you live, work, eat, whatever;” “I will never give up;” and “[a]s long as I live this will never end.” The letter concluded with: “This hasn’t even started yet.”
In 2010, shortly after being released from prison, SERGENTAKIS created a website (the “Website”) containing harassing and threatening content regarding Victim-1. On at least two occasions, Internet service providers stopped hosting the Website because of its content, but SERGENTAKIS responded by relaunching the Website with a different service provider. Between 2010 and the present, the Website’s content included, among many other things, the following:
- An image of a guillotine with the title “THE CURE FOR PEDOPHILLIA”[sic] and, immediately below the image, the statement: “We all have a responsibility to keep children safe from pedophiles like [Victim-1] . . . .”
- “[Victim-1] also enjoys beating helpless animals, he had a dalmation [sic] which would have accidents in the house so [Victim-1] would beat the dog to a pulp the same way he abuses cancer patients by denying them the monies the public wants them to have.”
- Photographs of Victim-1 and members of Victim-1’s family that had been posted on the Facebook accounts of certain of Victim-1’s family members.
- The statement that a poster regarding Victim-1 would be produced and that “Manhattan and [the town where Victim-1 lived] would be wallpapered with a 100,000 posters.”
SERGENTAKIS also created a Facebook account on which he posted harassing and threatening content regarding Victim-1. For example, in September 2014, the Facebook account showed a photograph of Victim-1 with the word “CRIMINAL” imposed in all capital letters across the bottom and, in August 2014, SERGENTAKIS posted a comment on the account stating: “I am thinking of running a promotion. What do you prefer a coffee mug or t shirt?” Above this comment was a photograph of a coffee mug bearing the web address of the Website, an image of Victim-1 behind prison bars, and the words “[Victim-1] CEO LLS.” In addition, SERGENTAKIS posted links to and advertisements for the Website on various other websites, including search engine websites, social media websites, news websites, and blogs.
SERGENTAKIS also used email to conduct his campaign of retaliation and harassment. For example, in August 2010, SERGENTAKIS sent an email to the then-principal of the high school where Victim-1’s children were enrolled as students, providing a link to the Website and stating: “this is something u need to know about.” SERGENTAKIS sent numerous emails to the media promoting the Website and making false allegations about Victim-1. For example, in September 2010, SERGENTAKIS sent an email to a TV station in Missouri stating, in part: “the head of a major nonprofit was arrested for child molestation and case fixing see [Website-1].” As another example, in September 2013, SERGENTAKIS sent an email to ABC News with the subject line “please review [Website-1]” and stating: “The CEO is a pedophile and millions of dollars are missing.” SERGENTAKIS further sent multiple emails to donors of LLS promoting the Website, disseminating such allegations about Victim-1, and encouraging the donors to stop supporting LLS.
SERGENTAKIS, 54, of Bangor, Pennsylvania, is charged with one count of retaliating against a witness or informant, which carries a maximum sentence of 10 years in prison, and one count of stalking, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara thanked and praised the USPIS for its outstanding work in this investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney George D. Turner is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Pair Plead Guilty to Child Pornography ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that James Grimes, aged 29, of Columbus, Georgia, entered a guilty plea to one count of possession of child pornography on December 17, 2014, before the Honorable Clay D. Land, Chief U.S. District Court Judge, in Columbus, Georgia.As part of an ongoing investigation by Homeland Security Investigations, a search warrant was executed at Mr. Grimes’ home on April 30, 2012. During a voluntary, consensual conversation with agents, Mr. Grimes admitted to owning multiple computers and having “illegal stuff” on some of them. He further admitted to accessing wireless modems around his neighborhood, downloading child pornography, and forwarding it to others. At the time of the interview, Mr. Grimes was in possession of more than 600 pornographic images.
Mr. Grimes faces a maximum possible sentence of twenty (20) years imprisonment, a maximum fine of $250,000, or both. He will also be required to register as a sex offender. He will be sentenced in about 60 days.
In a separate case, Kenneth Nichelson, aged 56, of Cataula, Georgia, entered a plea of guilty on December 17, 2014 before Judge Land to receipt of child pornography. In entering his plea of guilty, Mr. Nichelson admitted that between June 2010 and March 2011, he purchased nine DVDs depicting child pornography from a company in Toronto, Canada. When arrested on July 8, 2014, Mr. Nichelson was in possession of more than 10, but fewer than 150 images of child pornography on a computer in his home.
A criminal history check on Mr Nichelson revealed that he had a previous conviction of sexual abuse in the 2nd degree in 1994 in New York. Due to his previous conviction, he faces a sentence of a mandatory minimum 15 years up to 40 years. Sentencing for both Mr. Grimes and Mr. Nichelson will be in about 60 days.
“The tragedy of child pornography cases is that the children are re-victimized every time their photos are viewed by criminals like Mr. Grimes and Mr. Nichelson. That is why these cases are so important and why we’ll keep using every resource to protect our children,” said U.S. Attorney Michael Moore.Assistant United States Attorney Crawford Seals is prosecuting the case for the Government. Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Orlando Cocaine Trafficker Sentenced to 15 Years and Ordered to Forfeit His Home, Vehicles, and over $600,000Read the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp has sentenced Garry Wiggins (48, Orlando) to 15 years in federal prison for cocaine trafficking. The Court also ordered him to forfeit approximately $611,613, two automobiles, and his home on South Buena Vista Avenue in Orlando, all of which were either used to facilitate the crime, or determined to be traceable proceeds of the offense.
Wiggins pleaded guilty on September 16, 2014.
According to court documents, in about 2010, another Orlando co-conspirator began receiving shipments of kilograms of cocaine from the southwest border region of the United States, and then sold some of that cocaine to Wiggins. These shipments continued until May 31, 2014, when law enforcement agents with the Drug Enforcement Administration and the Orange County Sheriff’s Office arrested the co-conspirator and seized 15 kilograms of cocaine and approximately $109,700.
On May 31, 2014, agents conducted a controlled delivery and arrested Wiggins, who arrived to pick up the cocaine in a 2004 Chevrolet Avalanche containing a toolbox with approximately $175,470 for the anticipated purchase. Following his arrest, agents searched Wiggins’s home, where they found approximately $237,710 in cash, a kilogram of cocaine, a handgun, crack cocaine, and heroin. The residence was fortified with rebar and cement posts. Upon further investigation, agents also seized a 1969 Chevrolet Camaro race car, along with two Chase Bank accounts containing approximately $99,900 and $98,533, respectively.
This case was investigated by the Drug Enforcement Administration and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Daniel C. Irick.
Orange County Gang Members Sentenced for Sex Trafficking of A MinorRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced four individuals to federal prison for their participation in the sex trafficking of a minor. Xavier Francisco Villanueva, a/k/a “X,” (25, Orlando) was sentenced to 19 years and 7 months in federal prison; Jose Carmona, a/k/a “Hood,” (21, Orlando) was sentenced to a term of 12 years and 6 months; Ashley Nicole Barnett, a/k/a “Snow,” (25, Orlando) was sentenced to 10 years’ imprisonment; and Keith E. Romby, II, a/k/a “PJ,” (23, Orlando) was sentenced to 8 years and 4 months in federal prison.
On September 5, 2014, a federal jury found Villanueva, Carmona, and Barnett guilty of conspiracy to commit sex trafficking of a minor. Carmona and Barnett were also found guilty of aiding and abetting each other in the commission of the offense. Romby pleaded guilty to both charges on August 29, 2014.
According to evidence presented at trial, between January 17, 2013, and January 25, 2013, the individuals agreed to recruit and entice a 14-year-old girl to engage in commercial sex acts. Villanueva, Carmona, and Romby were part of the “Nine Trey Billy Bad Ass” gang, which is affiliated with the “Bloods” street gang. Over a period of nine days, they used drugs, intimidation, and physical restraint to cause the minor to engage in prostitution with customers they solicited through the Internet. On January 25, 2013, the minor escaped from the house where she was being held captive.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda and Karen Gable.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, 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.projectsafechildhood.gov.
Ocean County, N.J., Man Indicted Today in Multi-Million Dollar Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey, man was indicted today for his role in a large-scale mortgage fraud scheme that caused millions of dollars in losses, U.S. Attorney Paul J. Fishman announced.
Joseph DiValli, 45, of Jackson, New Jersey, was charged in a seven-count indictment with one count of conspiracy to commit wire fraud and six counts of wire fraud, all of which caused losses of at least $2 million. DiValli was originally charged by complaint on Jan. 24, 2013, with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court: From as early as March 2011, DiValli, a loan officer at a mortgage bank, allegedly engaged in a large-scale mortgage fraud conspiracy. He provided fraudulent documents to financial institutions in connection with mortgage loan applications on behalf of “straw buyers” to induce those financial institutions to fund mortgage loans. Relying upon those false documents, financial institutions funded mortgage loans. DiValli then profited illegally by receiving money from a conspirator.
DiValli is also charged with wire fraud involving a modification of a loan on his personal residence. From as early as March 2011, DiValli caused a loan officer at a mortgage brokerage company to send payroll ledgers and earnings statements from DiValli’s employer that falsely understated his earnings in order to fraudulently secure the modification.
The counts of wire fraud conspiracy and bank fraud are each punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million.
U.S. Attorney Fishman credited law enforcement agents of the FBI Newark Mortgage Fraud Task Force, including special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Steven Perez; special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan Larsen; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria Kelokates; special agents of the U.S. Housing and Urban Development, Office of Inspector General, Northeast Region of Investigations, under the direction of Special Agent in Charge Christina Scaringi; special agents of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), under the direction of Special Inspector General Christy Romero; and the Hudson County Prosecutor’s Office, under the direction of Acting Prosecutor Gaetano Gregory, for the investigation leading to today’s charges.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
The government is represented by Assistant U.S. Attorney Lakshmi Srinivasan Herman of the Economic Crimes Unit of the Criminal Division in Newark.
The charges and allegations contained in the indictment and complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Defense counsel: Michael Calabro Esq., Newark
DiValli, Joseph IndictmentNunez V. City of New York, Et Al. - U.S. Motion to Intervene DocumentsRead the Press Release
Nunez v. City of NY US Complaint in Intervention Exhibit A
Nunez v. City of NY, et al US Motion to Intervene Memo of Law
Nunez v. City of NY, et al US Motion to Intervene Notice of Motion
Nunez v. City of New York, et al US Complaint-In-InterventionNorfolk Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
NORFOLK, Va. – Eric Kevin Downey, 35, of Norfolk, Virginia, pleaded guilty today to charges of receipt of child pornography.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Special Agent in Charge Clark Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Washington office, made the announcement after the plea was presented to United States Magistrate Judge Douglas E. Miller.
Downey was indicted by a federal grand jury on November 5, 2014. Downey faces a mandatory minimum of 5 years and a maximum penalty of 20 years in prison when sentenced. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
According to a statement of facts filed with the plea agreement, Downey was identified when it was discovered that he had been surreptitiously filming a minor while she was drying off in a shower. Not only had he engaged in filming the minor, he also had been collecting images of minors engaged in sexually explicit activity from the Internet. Downey admitted he had been collecting these images since approximately 1999 or 2000. He will be sentenced on March 30, 2015.
This case was investigated by Homeland Security Investigations and Norfolk Police Department. Assistant U.S. Attorney Elizabeth M. Yusi is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-145.
Nine Charged in Scheme to Defraud BanksRead the Press Release
A second superseding indictment was returned today against nine people charged in a bank fraud conspiracy that also stole the identifying information of at least two people, announced United States Attorney Zane David Memeger and Burlington County (NJ) Prosecutor Robert D. Bernardi. The defendants allegedly obtained or attempted to obtain $279,875.93 through fraudulent means. Charged in the superseding indictment are: Adolphus William Cato, 33, Michael Ross, 49, both of Sicklerville, NJ; Jared Hayes, 37, Quanda Anthony, 43, both of Willingboro, NJ; Sean Finn, 31, of Mount Holly, NJ; Rushawn Woodall, 38, of Trenton, NJ; Leonard Herrington, 41, Zabrina Jobe, 39, both of Philadelphia, PA; and Warren Moore, 41, of Bordentown, NJ.
According to the indictment, the defendants defrauded and attempted to defraud Third Fed Bank, TD Bank, Santander Bank, PNC Bank, M&T Bank, and Andrews Credit Union. Cato allegedly manufactured and obtained fraudulent drivers licenses utilizing the personal identifying information of victims without their knowledge or consent. Hayes allegedly obtained valid checks from businesses and personal bank accounts from individuals known and unknown to the grand jury then used the information to produce counterfeit checks. The victims’ personal identifying information was used in applying for loans online, to obtain money from various financial institutions by cashing counterfeit checks, and to obtain the proceeds of fraudulent loans using counterfeit identifications and checks. Defendants Woodall and Moore also allegedly used unauthorized and counterfeit access devices and fraudulent identification, allegedly provided by defendants Cato and Hayes, to obtain automobiles from car rental businesses and hotel lodging.
If convicted, the defendants face the following statutory maximum possible sentences: Cato, 157 years in prison; Hayes, 127 years in prison; Ross, 125 years in prison; Anthony, 95 years in prison; Moore, 87 years in prison; Jobe, 67 years in prison; Woodall, 57 years in prison; Herrington, 37 years in prison; and Finn, 35 years in prison, plus possible fines and restitution.
This case was investigated by Immigration and Customs Enforcement Homeland Security Investigations (HSI), the United States Secret Service, the Burlington County (NJ) Prosecutor’s Office, the Bucks County District Attorney’s Office, the Bordentown Township (NJ) Police Department, the Burlington City (NJ) Police Department, the Burlington County (NJ) Sheriff’s Department, the Camden County (NJ) Prosecutor’s Office High Tech Crimes Unit, the Camden County (NJ) Sheriff’s Department, the Cherry Hill (NJ) Police Department, the Lehigh County Auto Theft Task Force, the Mount Holly (NJ) Police Department, the Pennsauken Township (NJ) Police Department, the Plumstead Township Police Department, Willingboro Township (NJ) Police Department, and the Winslow Township (NJ) Police Department. It is being prosecuted by Assistant United States Attorney Melanie Babb Wilmoth.
New York Woman Indicted in Federal Court in Rhode Island on Charges of Aggravated Identity Theft, FraudRead the Press Release
PROVIDENCE, R.I. – Tanika Hawkins, 37, of Port Jervis, N.Y., is scheduled to be arraigned in U.S. District Court in Providence on December 23, 2014, on a federal indictment returned on Wednesday charging her with two counts of aggravated identity theft and two counts of wire fraud.
Hawkins was arrested by Cranston Police on August 2, 2014, after she allegedly used stolen identifying information of a person from Ohio in an effort to secure a line of credit at a Cranston jewelry store for the purchase of a Rolex watch valued at approximately $9,000.
It is also alleged, based on information developed by the Cranston Police Department and the U.S. Secret Service, that Hawkins used the same stolen identifying information to secure a line of credit at a Providence jewelry store for the purchase of a Rolex watch.
The indictment of Tanika Hawkins is announced by United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Ms. Hawkins was released on unsecured bond following an initial appearance in U.S. District Court in this matter on August 4, 2014. Ms. Hawkins is scheduled to appear for arraignment before U.S. District Court Magistrate Judge Patricia A. Sullivan on December 23, 2014.
Wire fraud is punishable by statutory penalties of up to 20 years in federal prison and a fine of up to $250,000. Aggravated identity theft is punishable by a statutory penalty of a mandatory sentence of two years in federal prison, to be served consecutive to all other penalties imposed.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]New London Man Indicted for Production and Possession of Child PornographyRead the Press Release
United States Attorney James L. Santelle, for the Eastern District of Wisconsin, announced that on December 16, 2014, a federal grand jury returned a two-count indictment against Shane M. Sells (age: 38) of New London, Wisconsin, charging him with one count of production of child pornography in violation of 18 United States Code Section 2251 (a) and one count of possession of child pornography in violation of 18 United States Code Section 2252A (a)(5)(B).
If convicted of the production offense, Sells faces a sentence of between fifteen and thirty years imprisonment, a $250,000 fine, and between five years and a lifetime of supervised release. If he is convicted on the possession offense Sells faces up to ten years imprisonment, a $250,000 fine, and between five years and a lifetime of supervised release.
According to the indictment, Sells engaged in sexually explicit conduct with a minor child for the purpose of producing a recorded visual depiction of that conduct, as well as knowingly possessing multiple images of child pornography.
The case was investigated by the Wisconsin Department of Justice, Division of Criminal Investigation and the Shawano County Sheriff’s Department. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.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 U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
New Jersey Man, Three Others Charged in Painkiller Distribution OperationRead 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 a 17-count supersceding indictment charging a New Jersey man and three West Virginia residents in a prescription painkiller distribution operation, United States Attorney William J. Ihlenfeld, II, announced today.
An investigation revealed that Matthew L. Cordero, 31, of Vineland, New Jersey, Jonathan Paul Calain, 34, of Elkins, West Virginia, Stevie Lea Sharp, 27, of Coalton, West Virginia, and Gregory Stephen Scott, 34, of Beverly, West Virginia engaged in a scheme to procure oxycodone from sources in Detroit, New Jersey, and Florida for redistribution in the Northern District of West Virginia. Each of the defendants is charged with one count of “Conspiracy to Distribute Oxycodone.” They each face up to 20 years in prison and fine of up to $1,000,000.00 on the conspiracy charge.
Calain is additionally charged with one count of “Maintaining a Drug Involved Premises,” six counts of “Distribution of Oxycodone,” and one count of “Possession with Intent to Distribute Oxycodone.” He faces up to 20 years in prison on each of the eight counts. The drug involved premises charge carries a potential fine of up to $500,000.00. Each of the other seven counts carries a potential fine of up to $1,000,000.00.
Cordero is additionally charged with two counts of “Distribution of Oxycodone” and 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 on each of the three counts. Sharp is additionally charged with six counts of “Distribution of Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000.00 on each count. Scott is additionally charged with two counts of “Distribution of Oxycodone.” He faces up to 20 years in prison and a fine of up to $1,000,000.00 on each count.
Assistant U.S. Attorney Stephen Warner is prosecuting the case on behalf of the government. The case is being investigated by the Mountain Region Drug and Violent Crime Task Force, the West Virginia State Police, the Randolph County Sheriff’s Department, the Upshur County Sheriff’s Department, the Drug Enforcement Administration, and the Internal Revenue Service.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Nevada Man Found Guilty by Jury of Threatening to Kill A Federal Law Enforcement Officer-Defendant Previously Was Convicted of Similar Crime-Read the Press Release
WASHINGTON –Jeffrey Henry Williamson, 49, of Las Vegas, Nev., has been found guilty by a jury of making threats against a federal law enforcement officer, U.S. Attorney Ronald C. Machen Jr. and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, announced today.
The jury verdict was returned Dec. 16, 2014, in the U.S. District Court for the District of Columbia. The Honorable Rosemary M. Collyer will sentence Williamson on March 10, 2015. Williamson faces a statutory maximum sentence of 10 years in prison.
According to the government’s evidence, Williamson called the 911 Office of Unified Communications, in Washington, D.C., on June 19, 2014, and during an approximately 4 ½-minute recorded call, threatened to kill an FBI Special Agent who works in Denver. The evidence presented at trial established that Williamson made the threats in retaliation for an investigation of the defendant that the agent conducted in 2005 and 2006. That investigation involved harassing and threatening phone calls that Williamson was making to the Denver FBI field office and federal judges in Denver.
In 2008, Williamson was prosecuted in the Southern District of Texas for making threatening communications there. He was found guilty following a trial and sentenced to 42 months in prison, to be followed by three years of supervised release. However, Williamson kept up a pattern of harassing communications directed at federal officials. He completed his sentence and was released, but the Court revoked his supervised release. He then completed his second period of incarceration on Nov. 29, 2013. He arrived in Washington, D.C., in May 2014.
In announcing the verdict, U.S. Attorney Machen and Assistant Director in Charge McCabe commended those who investigated the case from the FBI’s Violent Crimes Task Force and the U.S. Marshals Service. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialist Leif Hickling; Criminal Investigators Zachary McMenamin and Durand Odom; Paralegal Specialists Jessica Moffatt and Michelle Holland, and Legal Assistant Donice Adams. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Frederick Yette, who prosecuted the case.
14-280Minot N.D. Man Sentenced for Bank RobberyRead the Press Release
FARGO - U. S. Attorney Timothy Q. Purdon announced that on Dec. 18, 2014, Antoine Lee Williams, 28, from Minot, N.D. was sentenced before U. S. District Judge Ralph R. Erickson, following a guilty plea to Bank Robbery, to serve 33 months in prison to be followed by 36 months supervised release. Williams must also pay a $100 special assessment to the Crime Victims Fund.
On October 24, 2013, Williams entered the Gate City Bank of Carrington, N.D., grabbed a slip of paper and left. A few minutes later, Williams reentered the bank, wearing a tan hat and sun glasses, and handed the teller the slip of paper demanding money and threatened her. Surveillance footage showed Williams leaving the scene in a white vehicle. Williams was apprehended shortly after leaving the bank. All monies from the bank robbery were recovered.
The case was investigated by the Federal Bureau of Investigation together with the Foster, Sheridan and Bottineau County Sheriff’s Offices, and the North Dakota Highway Patrol.
Assistant U. S. Attorney Keith Reisenauer prosecuted the case.
Michigan Man Sentenced to 15 Years for Heroin and Gun ChargesRead the Press Release
LEXINGTON, KY -Norshawn Michael Duplessis, 40, of Detroit, Mich., has been sentenced to 15 years in prison, for possessing hundreds of grams of heroin and a firearm in Lexington.
On Wednesday, U.S. District Judge Danny C. Reeves sentenced Duplessis for possession with intent to distribute 100 grams or more of heroin and for possessing a firearm in furtherance of drug trafficking.
Duplessis previously admitted that he possessed over 400 grams of heroin and intended to distribute it. Duplessis further admitted that he possessed a .380 caliber pistol in furtherance of his drug trafficking crime. The heroin and firearm, along with approximately $57,000 in cash, were found by law enforcement in Duplessis’ Lexington apartment, during the execution of a search warrant.
Duplessis pleaded guilty to the drug charge in July of 2014 and to the gun charge in September of 2014.
Under federal law, Duplessis must serve at least 85 percent of his prison sentence, and, upon release, will be under the supervision of the United States Probation Office for eight years.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, Joseph P. Reagan, Special Agent in Charge, Drug Enforcement Administration, and Rodney Brewer, Commissioner, Kentucky State Police jointly made the announcement after the sentencing.
The investigation was conducted by DEA and KSP. Assistant United States Attorney, Robert M. Duncan Jr., prosecuted this case on behalf of the federal government.
Miami Resident Sentenced for Defrauding and Extorting Spanish-Speaking Customers through Fraudulent Call CentersRead the Press Release
A Miami woman charged with running an operation that threatened and defrauded Spanish-speaking consumers was sentenced today in federal district court in Miami, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced.
Maria Luzula, 52, was sentenced to serve 165 months in federal prison to be followed by three years of supervised release for her operation of Angeluz Florida Corporation and call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements for nonexistent debts. In addition to her prison sentence, Luzula was ordered to forfeit assets, including her home.
In October, Luzula pleaded guilty to all 27 counts against her midway through trial before U.S. District Court Judge Patricia A. Seitz. The charges against her included conspiracy, mail fraud, wire fraud and attempted extortion. Luzula’s son, Juan Alejandro Rodriguez Cuya, 35, was convicted by a jury after less than two hours of deliberation following a two-week trial and will be sentenced on Jan. 22, 2015.
“The defendants targeted and preyed upon the Spanish-speaking community – and the harm that their fraud caused on individual victims is heart-wrenching,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Justice Department will be particularly vigilant towards schemes that target specific populations, and we will track down fraudulent actors whether they commit their offenses from the United States or abroad, and whether they commit them in English or another language.”
According to evidence presented at trial, the defendants’ employees in Peru used Internet-based telephone calls to threaten Spanish-speaking victims in the United States. The Peruvian callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that lawsuits would be brought against them. In reality, the victims had never ordered these products and nothing had been delivered.
Additional evidence at trial established that the call center employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation or seizure of property. Thousands of victims succumbed to these threats and paid fees that they did not owe.
Victims who testified at trial spoke of how anxious the calls made them. The victims were so afraid of the threats that they paid fees they simply could not afford. At sentencing, victims told the judge that they have lost trust in people and that they still become nervous every time the phone rings.
“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Wilfredo A. Ferrer for the Southern District of Florida. “In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division Consumer Protection Branch to protect our consumers from fraud.”
“The USPIS will continue to aggressively investigate and go after those who defraud citizens of their hard earned money through the use of threats and other abusive tactics,” said Postal Inspector in Charge Ronald Verrochio of the USPIS Miami Division.
Acting Assistant Attorney General Branda commended the USPIS for its investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case was prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg of the Civil Division’s Consumer Protection Branch.
Miami Resident Sentenced for Defrauding and Extorting Spanish-Speaking Customers Through Fraudulent Call CentersRead the Press Release
A Miami woman charged with running an operation that threatened and defrauded Spanish-speaking consumers was sentenced today in federal district court in Miami, the Department of Justice and U.S. Postal Inspection Service (USPIS) announced.
Maria Luzula, 52, was sentenced to serve 165 months in federal prison to be followed by three years of supervised release for her operation of Angeluz Florida Corporation and call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements for nonexistent debts. In addition to her prison sentence, Luzula was ordered to forfeit assets, including her home.
In October, Luzula pleaded guilty to all 27 counts against her midway through trial before U.S. District Court Judge Patricia A. Seitz. The charges against her included conspiracy, mail fraud, wire fraud and attempted extortion. Luzula’s son, Juan Alejandro Rodriguez Cuya, 35, was convicted by a jury after less than two hours of deliberation following a two-week trial and will be sentenced on Jan. 22, 2015.
“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Wilfredo A. Ferrer for the Southern District of Florida. “In this case, the defendants targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division Consumer Protection Branch to protect our consumers from fraud.”
“The defendants targeted and preyed upon the Spanish-speaking community – and the harm that their fraud caused on individual victims is heart-wrenching,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Justice Department will be particularly vigilant towards schemes that target specific populations, and we will track down fraudulent actors whether they commit their offenses from the United States or abroad, and whether they commit them in English or another language.”
According to evidence presented at trial, the defendants’ employees in Peru used Internet-based telephone calls to threaten Spanish-speaking victims in the United States. The Peruvian callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that lawsuits would be brought against them. In reality, the victims had never ordered these products and nothing had been delivered.
Additional evidence at trial established that the call center employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation or seizure of property. Thousands of victims succumbed to these threats and paid fees that they did not owe.
Victims who testified at trial spoke of how anxious the calls made them. The victims were so afraid of the threats that they paid fees they simply could not afford. At sentencing, victims told the judge that they have lost trust in people and that they still become nervous every time the phone rings.
“The USPIS will continue to aggressively investigate and go after those who defraud citizens of their hard earned money through the use of threats and other abusive tactics,” said Postal Inspector in Charge Ronald Verrochio of the USPIS Miami Division.
Acting Assistant Attorney General Branda commended the USPIS for its investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case was prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg of the Civil Division’s Consumer Protection Branch.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE RAMON GARCIANO-CABANILLA, age 47, a Mexican citizen, was sentenced today after having previously pled guilty to a one-count Indictment for illegal reentry of a removed alien.
United States District Court Judge Lance M. Africk sentenced GARCIANO-CABANILLA to 22 months imprisonment followed by 3 years of supervised release, and a $100 special assessment.
According to court documents, on or about June 5, 2014, agents of the Immigration and Customs Enforcement (“ICE”) encountered GARCIANO-CABANILLA after he had been arrested for traffic violations. After a records check, agents learned that GARCIANO-CABANILLA was a Mexican citizen who had not entered the United States legally and, in fact, had been previously deported from the United States on November 4, 2008. It was also learned that GARCIANO-CABANILLA had re-entered the United States without being inspected by United States Border Patrol officials and without the consent of the United States Attorney General.
At the sentencing hearing, Judge Fallon determined that GARCIANO-CABANILLA was subject to the 8 USC 1326(b)(1) sentencing enhancement provision due to GARCIANO-CABANILLA’s April 2003 prior conviction for conspiracy and possession with the intent to distribute marijuana.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement Agency in investigating this matter. Assistant United States Attorney Rick Veters is in charge of the prosecution.
Members of Fraud Ring Sentenced to Federal Prison for Stealing from the Home DepotRead the Press Release
ATLANTA - Robert Lee Hatcher III, Willie Dewayne Lynch, Andrew Oliver, and Arthur James Freeman have been convicted and sentenced for defrauding and conspiring to defraud The Home Depot, Inc.
“These defendants executed a long-term, sophisticated scam to defraud The Home Depot out of more than $600,000,” said United States Attorney Sally Quillian Yates. “Security measures at The Home Depot helped uncover and stop this scheme before they could steal more. This case should remind those who believe they have concocted the perfect scam that they will be caught.”
“The U.S. Secret Service and our law enforcement partners work tirelessly to protect our nation’s electronic financial payment systems,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office. “This sentence should serve as a reminder that criminals will not get away with using Point of Sale terminals to fund their criminal activity.”
According to United States Attorney Yates, the charges and other information presented in court: Beginning in at least January 2011, Hatcher, Lynch, and Oliver entered Home Depot stores in Georgia, Alabama, Florida, Tennessee, North Carolina, South Carolina, Kentucky, Louisiana, Mississippi, and Texas, and selected merchandise for purchase. Prior to purchasing the merchandise, they covered the UPC labels on high-priced items with UPC labels they removed from lower-priced items – a practice commonly called “ticket-switching.” The defendants then took the merchandise to a sales terminal, where they purchased it for the lower price.
After fraudulently purchasing the merchandise, Hatcher, Lynch, and Oliver removed the lower-priced UPC label, revealing the original, higher-priced UPC label. Next, the defendants returned the fraudulently purchased merchandise to Home Depot stores and obtained refund cards in the amounts of the actual (and higher) price of the merchandise. Hatcher, Lynch, and Oliver then sold the refund cards to Freeman in exchange for cash at 60% of the actual value contained on the refund cards. Thereafter, Freeman used the fraudulently obtained refund cards to buy merchandise at Home Depot stores, which he used to stock two retail stores that he owned and operated in Atlanta, Ga., known as “Bargain Wholesale.”
- On October 28, 2014, Robert Lee Hatcher III, 32, of Atlanta, Ga., was sentenced to five years in prison, followed by three years of supervised release, and was ordered to pay $647,391.02 in restitution.
- On October 28, 2014, Willie Dewayne Lynch, 30, of Atlanta, Ga., was sentenced to three years, nine months in prison, followed by three years of supervised release, and was ordered to pay $647,391.02 in restitution.
- On October 6, 2014, Andrew Oliver, 62, of Stone Mountain, Ga., was sentenced to three years, four months in prison, followed by three years of supervised release, and was ordered to pay $86,858.46 in restitution.
- Finally, on December 18, 2014, Arthur James Freeman, 54, of Atlanta, Ga., was sentenced to six months in prison, eight months of home confinement, followed by three months of supervised release, and was ordered to pay $113,527.50 in restitution.
This case was investigated by the United States Secret Service, the Governor’s Office of Consumer Protection, the Gwinnett County Police Department, the Woodstock Police Department, and the Atlanta Police Department, with assistance from Corporate Investigators with The Home Depot, Inc.
Assistant United States Attorneys Jeffrey W. Davis and Teresa D. Hoyt prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao/gan/.
Mecklenburg Co. Social Worker Charged with Receiving Illegal Kickbacks in Connection with Medicaid Fraud SchemeRead the Press Release
The Defendant Provided Medicaid Clients’ Identities to a Conspirator in Exchange for Cash
CHARLOTTE, N.C. – Ryce Edward Hatchett, Jr., 43, of Charlotte, and a Senior Social Worker with the Mecklenburg County Department of Social Services (DSS), was charged today by a criminal bill of information with one count of receiving illegal kickbacks, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A plea agreement has also been filed and Hatchett is expected to appear in federal court in the coming weeks to formally accept the guilty plea.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte.
According to filed court documents, from November 2009 to October 2010, and while working at DSS, Hatchett participated in an illegal kickback scheme with Ronnie Lorenzo Robinson, owner and operator of “Peaceful Alternative Resources, Inc.” (PAR), a non-profit mental health and mentoring services provider with offices in Charlotte and surrounding areas. Court records indicate that Hatchett solicited and received illegal kickbacks from Robinson and PAR, in exchange for the referrals of individuals enrolled with the Medicaid program, some of whom were DSS clients. Court records show that Robinson used the beneficiaries’ information to file fraudulent reimbursement claims with Medicaid for services that were either not approved by Medicaid or were never provided. According to court records, Hatchett received at least $12,000 in illegal kickbacks from Robinson, in exchange for providing the information of the Medicaid recipients.
Hatchett will be ordered by the U.S. District Court to appear on a summons for his initial appearance, which will be scheduled by the Court. At sentencing, he faces a maximum term of five years in prison and a $250,000 fine for receiving the illegal kickbacks. In his plea agreement, Hatchett has agreed to pay full restitution to Medicaid for any losses resulting from his criminal conduct. The final restitution amount will be determined by the court at Hatchett’s sentencing hearing, which has not been scheduled yet.
Robinson pleaded guilty in January 2014 to two counts of health care fraud in connection with a separate case and is currently awaiting sentencing.
The investigation into Hatchett was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. The prosecution was handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320