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17 December 2014
Statement by Deputy Attorney General James M. Cole on the President's Clemency DecisionsRead the Press Release
“The president’s actions today in providing clemency to eight individuals who were sentenced under outdated and unfair laws sustains his commitment to bring fairness to our criminal justice system. While all eight were properly held accountable for their criminal actions, their punishments did not fit their crimes, and sentencing laws and policies have since been updated to ensure more fairness for low-level offenders. All eight of these individuals meet the criteria I laid out under the President’s direction when I announced the Clemency Initiative in April: they are all non-violent, low-level offenders who have no significant criminal history nor ties to gangs or organized crime. All have served at least 10 years in prison with good conduct while incarcerated, and all would have gotten lesser sentences if convicted of the same crimes today."
“As I have said many times, for our criminal justice system to be effective, it needs to not only be fair; but it also must be perceived as being fair. That’s why we created the Clemency Initiative – in the hope of promoting that fundamental American ideal, equal justice under the law. The Justice Department will continue to identify applicants whom we can recommend to the president for commutation.”
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Statement of Manhattan U.S. Attorney Preet Bharara on Conviction of Rikers Island Correction Officer Terrence PendergrassRead the Press Release
“Our efforts to reform Rikers Island continue. Following last week’s conviction of correction officer Austin Romain for taking bribes and smuggling drugs into Rikers Island, today a jury convicted former Rikers Island captain Terrence Pendergrass of a federal civil rights crime. The jury unanimously found that Pendergrass violated Jason Echevarria’s constitutional rights by deliberately ignoring his pleas for help and depriving him of urgent medical care, leaving Echevarria to die alone in his cell. Echevarria should not have died, and the convictions of individual wrongdoers at Rikers Island – as well as the systemic, institution-wide reforms we are pursuing – should help prevent tragedies like Echevarria’s death from occurring again.”
Stamford Man Who Defrauded Investment Clients of $191k Sentenced to PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MICHAEL LOMBARDO, Jr., 38, of Stamford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for defrauding more than 20 of his investment clients.
According to court documents and statements made in open court, LOMBARDO worked for David Lerner Associates, Inc., a Westport-based company that provided investment services. LOMBARDO provided financial advice to the company’s clients with respect to their retirement savings and other investments. From approximately September 2011 to February 2014, LOMBARDO defrauded more than 20 clients by diverting more than $190,000 in client funds for his personal use. As part of his scheme, LOMBARDO submitted fraudulent requests to disburse a portion of the retirement accounts of clients. LOMBARDO would request that a disbursement check be sent, typically by overnight mail, to him at his Westport office. After he received the check, he would forge the client’s signature on the back of the check and then cause the check to be deposited into his personal bank account.
As part of his sentence, LOMBARDO was ordered to pay $191,068.73 in restitution.
On September 11, 2014, LOMBARDO pleaded guilty to one count of wire fraud.
This case was investigated by the Westport Police Department and the United States Secret Service and was prosecuted by Assistant U.S. Attorney Ray Miller.
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(203) 821-3722 [email protected]St. Louis County Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – MARK KISTLER, of St. Louis County, was indicted today for bank fraud in connection with the financial exploitation of an elderly person.
According to the indictment, Kistler met the victim, identified as N.W., who was a patient at his father’s medical practice. Kistler initially did errands and jobs for N.W. and eventually began to pressure N.W. to give him money. Between 2007 and 2011, Kistler, with the help of his mother and two girlfriends, is alleged to have taken more than $200,000 from N.W. and continues to live rent free in a St. Louis county house purchased with N.W.’s funds and titled in his mother’s name.
The bank fraud is alleged to have involved arrangement of a straw purchase of a St. Louis city house using N.W.’s funds. The mother of Kistler’s then-girlfriend is alleged to have been recruited as the straw buyer or nominal buyer of the property because Kistler and his girlfriend had poor credit. When Kistler and his girlfriend stopped making payments on the property, the house was foreclosed upon and the lender suffered a $92,000 loss.
If convicted, bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Additionally, restitution will be sought for N.W. and the victim financial institution.
The case was investigated by the FBI and the U.S. Postal Inspection Service in cooperation with the Missouri Secretary of State Securities Enforcement Section, which is pursuing a civil enforcement action against Kistler. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
South Carolina Man Sentenced to More Than Four Years in Prison on Securities Fraud Conspiracy and Money Laundering ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Terry Wayne Gandy, 51, of Myrtle Beach, S.C. to serve 57 months in prison followed by three years of supervised release for stealing more than $2 million from investors, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Gandy to pay $3,076,411.34 as restitution to his victim investors.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) and and B.W. Colier, Acting Director of the North Carolina State Bureau of Investigation (SBI) join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from 2000 to 2009 Gandy and his conspirators engaged in an investment fraud scheme that defrauded his victim investors of more than $2 million. According to court documents, Gandy was the owner and operator of TakeSix Trading Fund (TakeSix), which Gandy falsely held out to be a bona fide investment firm, when in fact TakeSix was never registered in North Carolina or elsewhere. Gandy used TakeSix to induce his victims to invest through the company, claiming, among other things, that their money would be invested in various project such as real estate and oil and gas wells. Contrary to Gandy’s claims, very little, if any, of the victim’s money was actually invested.
According to court documents and court proceedings, Gandy mainly targeted his former co-workers at Philipp Morris and solicited funds from them, promising rates of return anywhere between 20% to 30% annually. Instead of investing the victims’ money as promised, Gandy used it to fund his own personal lifestyle, including payment for luxury hotel accommodations on multiple trips to Las Vegas, cash withdrawals at Las Vegas casinos, purchase of luxury cars, and to pay purported “profits” to other investors who asked for their money, commonly known as “Ponzi” payments. Court records indicate that to further support his fraudulent scheme, Gandy provided his victim-investors false account statements depicting bogus and over-inflated account balances. In all, Gandy and his conspirators defrauded more than thirty victims of over $2 million. Co-conspirator John Reid Perkins earlier pleaded guilty to securities fraud conspiracy for his role in the scheme on September 6, 2013. Perkins is currently awaiting a sentencing date.
In handing down the 57 month sentence, Judge Cogburn emphasized that the “sentence is necessary to deter others who may be thinking of engaging in such unlawful conduct.”
Following the sentencing hearing, Gandy was permitted to remain on bond and will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by FBI, IRS and SBI. Assistant United States Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Shenandoah, Iowa, Resident Sentenced to 57 Months for Possession of Child PornographyRead the Press Release
COUNCIL BLUFFS, IA - On December 16, 2014, Anthony J. Simmons, a 30 year-old resident of Shenandoah, Iowa, was sentenced by United States District Court Judge John A. Jarvey to serve 57 months in prison for possession of child pornography, and to serve 10 years of supervised release following imprisonment, announced United States Attorney Nicholas Klinefeldt.
During the Spring of 2013, investigators located sexually explicit pictures of a fifteen year-old female on Simmons’ computer. On June 5, 2014, Simmons entered a guilty plea to possession of child pornography.
The investigation was conducted by the Iowa Division of Criminal Investigations, Cyber Crimes Unit, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Seven People and Florida Company Indicted for Health Care Fraud at Shaker Heights Surgical CenterRead the Press Release
A five-count indictment was filed charging seven people and a Florida company for their roles in a multi-million dollar health-care fraud conspiracy involving an experimental form of chiropractic manipulation, law enforcement officials said.
Indicted are: Physicians Surgical Group (PSG), a medical billing company headquartered in Boca Raton, FL.; Christopher Liva, 36, Edward Liva, 64, Carolyn Via, 51, all of Boca Raton, FL; Mark Fritz, age unknown, of Coral Springs, FL.; John Nickels, 60, Highland Heights; John Fortuna, 41, of Avon, and Antony Simone, 40, of Cleveland.
The Livas, Fritz, Nickels, Fortuna, Simone and the company are charged with one count each of conspiracy, wire fraud and health care fraud. Those six people are also charged with one count of money laundering. Ed Liva, Chris Liva and Via face an additional count of money laundering.
PSG was owned by Christopher Liva, Edward Liva and Carolyn Via. Those three people, along with four others not named in the indictment, also owned Shaker Heights Surgical Center, located at 3235 Lee Road. Fritz was the chief financial officer at PSG. Fortuna and Simone were licensed chiropractors while Nickels was a medical doctor and anesthesiologist, according to court documents.
The defendants deceived various private insurance companies to pay millions of dollars on behalf of patients who underwent an experimental form of manipulation under anesthesia at Shaker Heights Surgical Center. Manipulation under anesthesia is an aggressive form of therapy typically reserved for patients who had failed with conservative chiropractic care. There were serious risks associated with it, according to the indictment.
Because of the pain involved, patients were put under conscious sedation and it was recognized as a surgical procedure. It was not performed in an office setting but rather an outpatient surgical facility and typically generated three types of insurance claims -- for professional fees, facility fees and fees for anesthesia services, according to the indictment.
Beginning in 2008, Chris Liva and others began marketing Shaker Heights Surgical Center and the manipulation under anesthesia procedure to chiropractors in Ohio, typically at restaurants in downtown Cleveland or the Youngstown area. In return for referring patients to Shaker Heights Surgical Center for the manipulation under anesthesia procedure, chiropractors were paid a flat fee of $4,000 per patient referred for a three-day session of procedures. Patients were advised they would not have to pay anything for the procedure, according to the indictment.
The defendants disregarded diagnoses, used false diagnoses, submitted false billing claims, represented that procedures were performed by osteopathic and medical doctors when in reality they were performed by osteopathic doctors and chiropractors, waived patients’ required co-payments and deductibles, and took other steps as part of the criminal conspiracy. This took place between 2007 and 2010, according to the indictment.
Prosecutors are also seeking to seize property derived from the criminal conspiracy, including two properties in Boca Raton, FL., a Royal Oak Offshore Chronograph watch and 4.18-karat diamond stud earrings, as well as money, according to the indictment.
“This group bilked insurance companies through a series of false claims and diagnoses to get money, diamonds and expensive homes,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“This clinic was established not to help the sick and injured, but for the purpose of stealing insurance money,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “The individuals charged provided patients with a false diagnosis and submitted inflated claims to insurance companies – all in an effort to line their own pockets. The FBI, along with our federal, state, local and private industry partners, is committed to prosecuting these health care fraud schemes.”
“These defendants went to great lengths to try and hide their ill-gotten cash,” said Kathy Enstrom, Special Agent in Charge, Internal Revenue Service, Cincinnati Field Office. “The IRS will continue to follow the money trail in criminal conspiracies.”
The case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Christos N. Georgalis following an investigation by the FBI and IRS-CI.
If convicted, the defendants’ sentences 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 (if any), 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.
Rochester Man Pleads Guilty to Drug & Firearm PossessionRead 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 Leroy J. Smith, 37, of Rochester, NY, pleaded guilty plea to possession of a firearm as a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime before U.S. District Judge Frank P. Geraci. The charges carry a mandatory minimum sentence of five years in prison and a maximum of life.Assistant U.S. Attorney Robert Marangola, who is handling the case, stated that between January and June 2012, the defendant possessed a 20 gauge shotgun while he was also in possession of quantities of marijuana for distribution. Smith came to the attention of law enforcement in 2013 during a law enforcement initiative in the vicinity of Linnert Street in Rochester. At that time, the defendant was in possession of a Colt .38 caliber double action revolver.
The plea was the culmination of an investigation on the part of Special Agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of James S. Higgins, Special Agent in Charge, New York Field Office.
Sentencing is scheduled for March 19, 2015 at 3:00 p.m. before Judge Geraci.
Rikers Island Correction Officer Found Guilty in Manhattan Federal Court of Deliberately Ignoring Urgent Medical Needs of Inmate Who DiedRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TERRENCE PENDERGRASS, a correction officer and former captain, was found guilty today in federal court of deliberately ignoring the urgent medical needs of a Rikers Island inmate who had ingested a corrosive disinfectant and later died, in violation of the inmate’s rights under the United States Constitution.
U.S. Attorney Bharara stated: “Our efforts to reform Rikers Island continue. Following last week’s conviction of correction officer Austin Romain for taking bribes and smuggling drugs into Rikers Island, today a jury convicted former Rikers Island captain Terrence Pendergrass of a federal civil rights crime. The jury unanimously found that Pendergrass violated Jason Echevarria’s constitutional rights by deliberately ignoring his pleas for help and depriving him of urgent medical care, leaving Echevarria to die alone in his cell. Echevarria should not have died, and the convictions of individual wrongdoers at Rikers Island – as well as the systemic, institution-wide reforms we are pursuing – should help prevent tragedies like Echevarria’s death from occurring again.”
According to the Complaint, Indictment, and evidence presented at trial:
Rikers Island is a jail complex, located in the Bronx, New York, maintained by the New York City Department of Correction. At the time of his death, Jason Echevarria was an inmate incarcerated on Rikers Island in the Mental Health Assessment Unit for Infracted Inmates (known as “MHAUII”), a unit housing inmates who had committed infractions while incarcerated and who were identified as needing mental health treatment.
On the afternoon of August 18, 2012, Echevarria swallowed a powerful disinfectant/detergent combination in powder form, commonly referred to as a “soap ball,” used to clean and disinfect cells. Echevarria had been given the soap ball by a new correction officer for the purpose of cleaning Echevarria’s cell following a sewage backup. The soap ball contained, among other things, ammonium chloride, a corrosive chemical that is life threatening if ingested.
After Echevarria swallowed the soap ball, he began banging on his cell door and asking for help. Echevarria also told a correction officer that he had swallowed a soap ball and needed help. That correction officer in turn informed PENDERGRASS, the captain on duty at that time. As the captain on duty, PENDERGRASS was responsible for arranging for medical treatment for the inmates in his unit. Rather than arrange for that care, however, PENDERGRASS responded that the correction officer should only call on PENDERGRASS if he needed help with the extraction of an inmate from a cell or if there was a dead body. A short time later, the same correction officer told PENDERGRASS that he saw vomit in Echevarria’s cell, and PENDERGRASS responded that Echevarria should be told to “hold it.” Soon after, another correction officer told PENDERGRASS that Echevarria had swallowed a soap ball and that a pharmacy technician had told that officer that Echevarria needed a doctor. Despite what he had been told, and despite going to Echevarria’s cell himself after Echevarria had vomited, PENDERGRASS did not call for medical help. He also ordered an officer who was trying to call for help to hang up the phone.
PENDERGRASS, 50, of Howard Beach, New York, was convicted of one count of deprivation of rights under color of law. He faces a maximum sentence of 10 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing has been scheduled for April 17, 2015, at 4:00 p.m., before U.S. District Judge Ronnie Abrams.
United States Attorney Bharara praised the work of the Federal Bureau of Investigation, and expressed his appreciation for the assistance of the New York City Department of Correction, Investigation Division, the Bronx County District Attorney’s Office, and the New York City Department of Investigation in the investigation of this matter.
This case is being prosecuted jointly by the Office’s Civil Rights Unit and Public Corruption Unit. Assistant U.S. Attorneys Lara K. Eshkenazi and Daniel C. Richenthal are in charge of the prosecution.
U.S. v. Terrence Pendergrass Indictment
Rapid City Man Convicted of Drug ConspiracyRead the Press Release
United States Attorney Brendan V. Johnson announced that Luis Olivares, age 42, of Rapid City, South Dakota, was found guilty of Conspiracy to Distribute Methamphetamine, Possession of Firearms During a Drug Trafficking Crime, Felon and Fugitive in Possession of Firearms, Possession of Methamphetamine with the Intent to Distribute, and Distribution of Methamphetamine. The federal jury returned the guilty verdict on December 10, 2014, at the conclusion of an eight-day jury trial in Rapid City.
The charges carry a 20-year minimum mandatory and up to life in custody and/or a $20,000,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. There is a pending motion, filed by the United States, that may result in mandatory life imprisonment.
The conviction stems from Olivares recruiting others to illegally distribute and possess with the intent to distribute 500 grams or more of methamphetamine in South Dakota and elsewhere dating back to 2008. Olivares distributed this substance with his co-conspirators in Rapid City and western South Dakota. Previous felony convictions prohibit Olivares from possessing firearms. However, on more than one occasion, Olivares was in possession of firearms while dealing drugs.
A turning point in the case came when Olivares crashed his vehicle while attempting to elude law enforcement though a high-speed chase. Once he crashed and was apprehended, several packages of methamphetamine were found inside the vehicle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Drug Enforcement Administration, the Unified Narcotics Enforcement Team, the Rapid City Police Department, the Pennington County Sheriff’s Office, and the South Dakota Highway Patrol. Assistant U.S. Attorneys Kathryn N. Rich and Jay Miller prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
President Obama Grants Commutations and PardonsRead the Press Release
WASHINGTON, D.C. – Today President Barack Obama granted clemency to twenty individuals, consisting of eight commutations and twelve pardons.
The President granted commutations of sentence to the following eight individuals:
- Sidney Earl Johnson, Jr. – Mobile, AL
Offense: Conspiracy to distribute and possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; use of a communication facility to commit a felony (Southern District of Alabama)
Sentence: Life imprisonment; 10 years’ supervised release (Apr. 13, 1994)
Commutation Grant: Prison sentence commuted to expire on June 12, 2015.
- Cathy Lee Jones – Portsmouth, VA
Offense: Conspiracy to possess with intent to distribute and distribute heroin and cocaine base (Eastern District of Virginia)
Sentence: 262 months’ imprisonment; five years’ supervised release (Apr. 29, 2003)
Commutation Grant: Prison sentence commuted to expire on April 15, 2015.
- Rickey Marcell McCall – Birmingham, AL
Offense: Possession with intent to distribute in excess of 50 grams of a mixture and substance containing cocaine base; possession of a firearm by a convicted felon (two counts) (Northern District of Alabama)
Sentence: Life imprisonment; 120 months’ supervised release (Jan. 11, 2001)
Commutation Grant: Prison sentence commuted to expire on April 15, 2015.
- Larry Nailor – Memphis, TN
Offense: Possession of a controlled substance with intent to distribute approximately 50 grams of cocaine base (Western District of Tennessee)
Sentence: Life imprisonment; 10 years’ supervised release (Nov. 7, 1997)
Commutation Grant: Prison sentence commuted to expire on April 15, 2015.
- Antonio Gromyko Reeves – Kennett, MO
Offense: Distribution of five grams or more of cocaine base (Eastern District of Missouri)
Sentence: 188 months’ imprisonment; four years’ supervised release (May 21, 2004)
Commutation Grant: Prison sentence commuted to expire on April 15, 2015.
- Jennifer Regenos – Muscatine, IA
Offense: Conspiracy to distribute methamphetamine (Southern District of Iowa)
Sentence: 240 months’ imprisonment; 10 years’ supervised release (Mar. 25, 2002)
Commutation Grant: Prison sentence commuted to expire on April 15, 2015.
- Barbara Lammsies Scrivner – Portland, OR
Offense: Conspiracy to manufacture, possess with intent to distribute, and distribute methamphetamine; possession with intent to distribute methamphetamine (District of Oregon)
Sentence: 360 months’ imprisonment; five years’ supervised release (July 3, 1995)
Commutation Grant: Prison sentence commuted to expire on June 12, 2015.
- Israel Abel Torres – Dallas, TX
Offense: Conspiracy to possess with intent to distribute controlled substances; possession with intent to distribute cocaine base (Eastern District of Texas)
Sentence: Life imprisonment; 10 years’ supervised release; $1,000 fine (Dec. 4, 1998)
Commutation Grant: Prison sentence commuted to expire on April 15, 2015.
The President granted pardons to the following twelve individuals:
- Roy Norman Auvil – Bartonville, IL
Offense: Possession of an unregistered distilling apparatus; working a distillery on which the required sign is not placed (District of South Carolina)
Sentence: Five years’ probation (Nov. 16, 1964)
- Bernard Bryan Bulcourf – McIntosh, FL
Offense: Counterfeiting Federal Reserve notes (Southern District of Florida)
Sentence: 90 days’ confinement in a community treatment center, followed by three years’ probation (Nov. 18, 1988)
- Steve Charlie Calamars – San Antonio, TX
Offense: Possession of phenyl-2-propanone with intent to manufacture a quantity of methamphetamine (Western District of Texas)
Sentence: 57 months’ imprisonment; three years’ supervised release (May 31, 1989; as amended Apr. 8, 1994)
- Diane Mary DeBarri, fka Diane Mary Wilhelm – Fairless Hills, PA
Offense: Conspiracy to manufacture and distribute methamphetamine; distribution of methamphetamine (Eastern District of Pennsylvania)
Sentence: 90 days’ imprisonment; five years’ probation conditioned on performance of community service as directed by the court (June 15, 1984)
- Donnie Keith Ellison – London, KY
Offense: Manufacture of marijuana (Eastern District of Kentucky)
Sentence: Five months’ imprisonment; three years’ supervised release (Sept. 1, 1995)
- John Marshall French – Clovis, CA
Offense: Conspiracy to transport a stolen motor vehicle in interstate commerce (District of South Carolina)
Sentence: Three years’ probation conditioned on performance of 100 hours of community service and payment of $2,337 restitution (Mar. 2, 1993)
- Ricardo Marcial Lomedico, Sr. – Point Roberts, WA
Offense: Misappropriation of bank funds by an employee (Western District of Washington)
Sentence: Five years’ imprisonment (Nov. 21, 1969)
- David Raymond Mannix – Lafayette, OR
Offense: Conspiracy to commit larceny; theft of military property (U.S. Marine Corps general court-martial convened at Camp Pendleton, CA)
Sentence: 75 days’ confinement; forfeiture of $350 pay per month for three months; reduction to Private First Class, pay grade E-2 (Oct. 18, 1989, as approved Mar. 2, 1990)
- David Neil Mercer – Grand Junction, CO
Offense: Archaeological Resources Protection Act violation (District of Utah)
Sentence: 36 months’ probation; $2,500 fine; $1,437.72 joint and several restitution (Apr. 9, 1997)
- Claire Holbrook Mulford, fka Claire Audrey Holbrook – Flint, TX
Offense: Using a residence to distribute methamphetamine; carrying a firearm during a drug-trafficking crime (Eastern District of Texas)
Sentence: 70 months’ imprisonment; two years’ supervised release (Dec. 3, 1993)
- Brian Edward Sledz – Naperville, IL
Offense: Wire fraud; violation of the Commodity Exchange Act (Northern District of Illinois)
Sentence: One year of probation conditioned on payment of $1,318 costs of supervision and $8,297.91 restitution (Apr. 29, 1993)
- Albert Byron Stork – Delta, CO
Offense: Filing a false tax return (District of Colorado)
Sentence: Six months’ confinement in a jail-type or treatment institution; three years’ probation (May 8, 1987)
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Ponchatoula Man Pleads Guilty to Collecting over 500,000 Images of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERT SWAN, age 52, of Ponchatoula, pled guilty today for his role in sexual exploiting children, including receiving images depicting the sexual victimization of children.
According to court documents, on January 30, 2013, investigators with the State of Louisiana Department of Justice – Office of the Attorney General, Cyber Crime Unit, executed a search warrant on SWAN’S residence. The search was based on evidence obtained by law enforcement that between about November 30, 2012, and December 1, 2012, SWAN distributed, by making publicly available in the shared folder of his peer-to-peer program, videos depicting the sexual victimization of children between the ages of two and ten. Agents seized fifteen separate digital devices, including multiple computers, hard drives, and flash drives.
While reviewing materials seized in the search, agents found digital materials evidencing that in about January 2010, SWAN and his associate, Thomas Middleton, forced a then-three year-old girl to engage in sexually explicit conduct, which SWAN recorded.
Additionally, agents found that between about May 2010 and January 2013, SWAN had downloaded, saved, and catalogued at least 500,000 images and videos—one of the largest collections of child pornography found in the State of Louisiana—depicting children as young as at least four weeks old being forced to engage in sexually explicit conduct. Titles of many of the videos were consistent with the content of the videos.
Because of SWAN’S prior conviction in 1987 for lewd and lascivious assault of a minor in Escambia County, Florida, SWAN faces a mandatory minimum term of imprisonment of fifteen years and a maximum sentence of forty years, followed by up to a life term of supervised release, and a $250,000 fine. He can also be required to register as a sex offender. Sentencing before U.S. District Judge Berrigan has been scheduled for March 25, 2015.
“Robert Swan has been brought to justice for collecting over 500,000 images of child pornography, one of the largest collections ever seized in our state,” stated U.S. Attorney Polite. “Our Office, along with our federal and state law enforcement partners, will remain vigilant in fighting the sexual exploitation of our region’s most vulnerable victims -- our children.”
“Robert Swan is every parent’s worst nightmare,” said Louisiana Attorney General Buddy Caldwell. “When our Cyber Crime Unit begins an undercover investigation, we never know how dangerous the person lurking on the other side of the computer will be. In this case, our forensic examination revealed that Swan not only possessed or shared half a million images depicting the sexual abuse of children, but also that he actually teamed up with another pedophile to abuse an innocent child. We are very pleased and proud that our Cyber Crime Unit was instrumental in putting this pedophile behind bars.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Polite praised the work of the State of Louisiana Department of Justice – Office of the Attorney General, Cyber Crime Unit in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Pepper Pike Woman Indicted for $476,000 ID Theft and Tax Fraud SchemeRead the Press Release
A Pepper Pike woman was indicted for an identity-theft scheme in which she attempted to claim $476,000 in fraudulent tax refunds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Ghana Johnson, 45, was indicted on one count of wire fraud, five counts of filing false claims for income tax refunds and five counts of aggravated identity theft.
"This defendant stole identities from unsuspecting people and then tried to get rich off of taxpayers," Dettelbach said.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” Enstrom said. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers.”
She electronically filed 106 false, fictitious, and fraudulent tax returns for tax years 2010 and 2011 — in her own name and others’ — claiming a total of $476,503 in tax refunds. Johnson requested that these false income tax refunds be paid by direct deposit to prepaid debit cards, according to the indictment.
Johnson used stolen means of identification, including names and Social Security numbers, to execute her scheme. She obtained these means of identification in a variety of ways, including from stolen admission records from a medical and dental assistant school in Cleveland, according to the indictment.
Johnson held herself out to be an income tax preparer to family, friends, and others; even though Johnson did not list herself as an income tax preparer on any of the fraudulent income tax returns she filed in the names of others, according to the indictment.
Johnson falsified wage income, federal income tax withholdings, dependents, exemptions, and tax credit information in order to obtain income tax refunds for which neither Johnson nor the individuals she prepared the income tax returns for were entitled to receive. Many of the fraudulent income tax returns filed by Johnson shared common characteristics, including addresses, employers, wages, federal income tax withholdings, and tax credits, according to the indictment.
The Internal Revenue Service, Criminal Investigation Unit, in Cleveland, Ohio conducted the investigation. The case is being prosecuted by Assistant United States Attorney Miranda E. Dugi.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
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.
Pennsylvania Woman Pleads Guilty to Possession, Sale and Transprortation of A Stolen FirearmRead 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 Ciera Leann Bennett, 23, of Lawrenceville, Pennsylvania, pleaded guilty before U.S. District Judge Frank P. Geraci to possession and sale of a stolen firearm and transportation of a stolen firearm over state lines. The charges carry a maximum penalty of 10 years in prison, a fine of $250,000 or both.Assistant U.S. Attorney Charles E. Moynihan, who is handling the case, stated that Bennett was arrested after an investigation by the Pennsylvania State Police into the theft of a .38 caliber revolver from the owner in Tioga, Pennsylvania. On April 26, 2012, the defendant and co-defendant, Danelle Wilson, transported the stolen .38 caliber revolver from Tioga, Pennsylvania, to Elmira, NY, and sold it.
On December 31, 2012, the firearm was recovered in Ithaca, NY. Ballistic tests on the firearm concluded that the firearm had been used in an officer-related shooting in October of 2012, in which an Ithaca police officer was seriously injured. Bennett admitted that she took the gun from her mother without permission, sold it and used the money from the sale to buy drugs.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation and the Pennsylvania State Police.
Sentencing is scheduled for March 19, 2015, at 3:30 PM before Judge Geraci.
Parmelee Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on December 15, 2014, by U.S. District Judge Roberto A. Lange.
Franklin Running Horse, age 48, was sentenced to 27 months in custody, 2 years of supervised release, and $100 special assessment to the Federal Crime Victims Fund.
Running Horse was indicted by a federal grand jury on July 15, 2014. He pled guilty on September 24, 2014.
The conviction stems from an incident which happened on April 10, 2014, when Running Horse, who had been drinking with his wife, got into an argument with her. Running Horse pushed the victim down and kicked her with shod feet in her face and posterior.
This case was investigated by the Rosebud Sioux Tribe law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Running Horse was immediately turned over to the custody of the U.S. Marshals Service.
Panama City Man Indicted on Child Pornography ChargesRead the Press Release
Follow @NDFLNewsPANAMA CITY, FLORIDA – A federal grand jury returned an indictment yesterday charging Timothy K. Smith, Jr., 37, with distribution, receipt, and possession of child pornography. Count one of the indictment alleges that on or about June 28, 2014, Smith knowingly and intentionally distributed images and videos of child pornography. Counts two and three allege that between August 21, 2012, and August 21, 2014, Smith knowingly received and possessed child pornography that involved a prepubescent minor and a minor younger than 12. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment results from an investigation by agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Florida Department of Law Enforcement, and the North Florida Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant United States Attorney Kathryn Risinger.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt in a court of law.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. Our office strives to protect and serve the citizens of the Northern District of Florida through the ethical, vigorous, and impartial enforcement of the laws of the United States, to defend the national security, to improve the safety and quality of life in our communities through the protection of civil rights, and to protect the public funds and financial assets of the United States. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Oxford Man Admits Operating Ponzi SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT E. LEE, JR., 50, of Oxford, pleaded guilty today in Bridgeport federal court to an indictment charging him with five counts of wire fraud stemming from his operation of a Ponzi scheme.
According to court documents and statements made in court, LEE was employed as a broker and financial advisor for various financial investment firms until July 2013 when he was terminated by his most recent employer, Rockwell Global Capital, LLC. Between January 2011 and March 2014, LEE defrauded individuals of more than $800,000 by claiming that he was investing their money in various investment vehicles when, in fact, he was maintaining custody of their funds in his personal bank account. He then used the money to make distributions to other investors, and for personal expenses. To conceal the scheme, LEE fabricated account statements and other documents, which he delivered to his victims.
LEE was arrested on May 12, 2014, and he is currently released on a $250,000 bond.Each count of wire fraud carries a maximum term of imprisonment of 20 years. LEE is scheduled to be sentenced by U.S. District Judge Jeffrey Alker Meyer on March 11, 2015.
The government is seeking the forfeiture of $358,077.17 that LEE held in an online trading account at the time of his arrest.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys David T. Huang and Christopher M. Mattei.
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(203) 821-3722 [email protected]Owner of Dietary Supplement Company Pleads Guilty to Multimillion-Dollar Scheme to Adulterate Dietary SupplementsRead the Press Release
NEWARK, N.J. – The owner and president of a dietary supplement manufacturing company in Flanders, New Jersey, pleaded guilty today to conspiracy to commit wire fraud in relation to a scheme in which he directed the sale of diluted and adulterated dietary ingredients and supplements sold by his company, U.S. Attorney Paul J. Fishman announced.
Barry Steinlight, 69, of Hackettstown, New Jersey, pleaded guilty to a one-count information charging him with conspiring to commit wire fraud. As part of his plea agreement, Steinlight admitted that Raw Deal’s gross sales during the scheme were between $7 million and $20 million. Steinlight has agreed to forfeit more than $1 million in profits from the scheme.
“Barry Steinlight diluted his products, cheated his customers and lied to the Food and Drug Administration when they came to inspect his company,” U.S. Attorney Fishman said. “This scheme went on for four years and essentially became the business model at his company. People who sell and use dietary supplements have the right to expect that the ingredients are listed and they get what they paid for.”
“This dietary supplement company owner ignored his basic obligations in his pursuit for profit,” said Acting Assistant Attorney General Joyce R. Branda for the Department of Justice’s Civil Division. “American consumers have a right to know that the dietary supplements they purchase are safe to consume and that the ingredients listed on the label are actually in the bottle. This case demonstrates the Department of Justice’s commitment to ensuring that those who deal products affecting the health and safety of consumers are law abiding and that wrongdoers will be held accountable.”
According to documents filed in this case and statements made in court:
Steinlight was the president and owner of Raw Deal Inc., a dietary supplement manufacturing facility. From at least 2009 through November 2013, Steinlight instructed Raw Deal employees to add “fillers,” including maltodextrin, viobin cocoa replacer and rice flours to the dietary ingredients and supplements packaged for, and sold to, Raw Deal’s customers. These “fillers” were added without customer consent or knowledge. Steinlight also directed Raw Deal employees not to list the “fillers” as ingredients on the certificates of analysis (COAs) issued to its customers as proof of the identity of the ingredients contained in the products.
In addition to directing the dilution and adulteration of Raw Deal’s products, Steinlight also directed Raw Deal employees to create COAs that falsely certified that certain of Raw Deal’s products were kosher or organic. Further during an U.S. Food and Drug Administration (FDA) inspection of Raw Deal in February 2012, Steinlight instructed Raw Deal employees to alter a document before providing it to the FDA.
U.S. Attorney Fishman credited special agents of the FDA’s Office of Criminal Investigations, under the direction of Acting Special Agent in Charge James J. Royal, who investigated the case.
“When a company distributes adulterated and misbranded dietary supplements, they put consumers at risk,” said Acting Special Agent in Charge Royal. “Today’s plea agreement should serve as a reminder that FDA’s Office of Criminal Investigations will continue working with the Department of Justice to protect consumers from public health risks and fraud.”
The conspiracy charge carries a statutory maximum sentence of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for March 30, 3015.The government is represented by Assistant U.S. Attorney Joseph Mack, Deputy Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, Special Assistant U.S. Attorney Shannon M. Singleton from the FDA’s Office of Chief Counsel, and Trial Attorneys Patrick Runkle and David Sullivan of the Civil Division’s Consumer Protection Branch. Paralegal Jeffrey Skonieczny of the U.S. Attorney’s Office also assisted in the criminal investigation.
U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office for the District of New Jersey shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $620 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
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Defense counsel: William F. Maderer Esq., Florham Park, N.J.
Steinlight, Barry Information
Owner of Dietary Supplement Company Pleads Guilty to Multi-Million Dollar Scheme to Adulterate Dietary SupplementsRead the Press Release
The owner and president of a dietary supplement manufacturing company in Flanders, New Jersey, pleaded guilty today to conspiracy to commit wire fraud in relation to a scheme in which he directed the sale of diluted and adulterated dietary ingredients and supplements sold by his company, U.S. Attorney Paul J. Fishman announced.
Barry Steinlight, 69, of Hackettstown, New Jersey, pleaded guilty to a one-count information charging him with conspiring to commit wire fraud. As part of his plea agreement, Steinlight admitted that Raw Deal’s gross sales during the scheme were between $7 million and $20 million. Steinlight has agreed to forfeit more than $1 million in profits from the scheme.
“Barry Steinlight diluted his products, cheated his customers and lied to the Food and Drug Administration when they came to inspect his company,” said U.S. Attorney Fishman. “This scheme went on for four years and essentially became the business model at his company. People who sell and use dietary supplements have the right to expect that the ingredients are listed and they get what they paid for.”
“This dietary supplement company owner ignored his basic obligations in his pursuit for profit,” said Acting Assistant Attorney General Joyce R. Branda for the Department of Justice’s Civil Division. “American consumers have a right to know that the dietary supplements they purchase are safe to consume and that the ingredients listed on the label are actually in the bottle. This case demonstrates the Department of Justice’s commitment to ensuring that those who deal products affecting the health and safety of consumers are law abiding and that wrongdoers will be held accountable.”
According to documents filed in this case and statements made in court:
Steinlight was the president and owner of Raw Deal Inc., a dietary supplement manufacturing facility. From at least 2009 through November 2013, Steinlight instructed Raw Deal employees to add “fillers,” including maltodextrin, viobin cocoa replacer and rice flours to the dietary ingredients and supplements packaged for, and sold to, Raw Deal’s customers. These “fillers” were added without customer consent or knowledge. Steinlight also directed Raw Deal employees not to list the “fillers” as ingredients on the certificates of analysis (COAs) issued to its customers as proof of the identity of the ingredients contained in the products.
In addition to directing the dilution and adulteration of Raw Deal’s products, Steinlight also directed Raw Deal employees to create COAs that falsely certified that certain of Raw Deal’s products were kosher or organic. Further during an U.S. Food and Drug Administration (FDA) inspection of Raw Deal in February 2012, Steinlight instructed Raw Deal employees to alter a document before providing it to the FDA.
U.S. Attorney Fishman credited special agents of the FDA’s Office of Criminal Investigations, under the direction of Acting Special Agent in Charge James J. Royal, who investigated the case.
“When a company distributes adulterated and misbranded dietary supplements, they put consumers at risk,” said Acting Special Agent in Charge Royal. “Today’s plea agreement should serve as a reminder that FDA’s Office of Criminal Investigations will continue working with the Department of Justice to protect consumers from public health risks and fraud.”
The conspiracy charge carries a statutory maximum sentence of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for March 30, 2015.
The government is represented by Assistant U.S. Attorney Joseph Mack, Deputy Chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit, Special Assistant U.S. Attorney Shannon M. Singleton from the FDA’s Office of Chief Counsel, and Trial Attorneys Patrick Runkle and David Sullivan of the Civil Division’s Consumer Protection Branch. Paralegal Jeffrey Skonieczny of the U.S. Attorney’s Office also assisted in the criminal investigation.
U.S. Attorney Fishman reorganized the health care fraud practice at the U.S. Attorney’s Office for the District of New Jersey shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $620 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
Notice of Court Proceedings Status Hearing Scheduled for Former Lexington County Sheriff James R. MettsRead the Press Release
December 16, 2014Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Chief United States District Judge Terry L. Wooten will hold a status hearing in the case of United Sates v. James R. Metts, Case No. 3:14-cr-429.
WHEN: WHERE:Matthew J. Perry, Jr., Courthouse
Courtroom V
901 Richland Street
Columbia, SC 29201Nisland Woman Sentenced for FraudRead the Press Release
United States Attorney Brendan V. Johnson announced that a Nisland, South Dakota, woman convicted of Access Device Fraud was sentenced on December 8, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Glenda Suhr, a/k/a Glennda Suhr, a/k/a Glenda Currier, age 59, was sentenced to 18 months in custody, 3 years of supervised release, $54,407 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
The conviction relates to Suhr fraudulently using the name and social security number of another person to open bank accounts and receive debit and cash cards from two banks, social security benefits, housing assistance, and food stamps, during the timeframe of the late 1980’s through 2013.
This case was investigated by Department of Social Security, Office of the Inspector General. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Suhr was immediately turned over to the custody of the U.S. Marshals Service.
Newburgh Man Sentenced for Possession of Sexually Explicit Material Involving MinorsRead the Press Release
EVANSVILLE – Josh J. Minkler, Acting United States Attorney, announced today that Charles M. Prideaux, 47, Evansville, Indiana, was sentenced to 60 months in prison by Chief U.S. District Judge Richard L. Young for possession of sexually explicit material involving minors. This case was the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force and the Evansville Police Department.
“Protecting our innocent children from internet predators will remain a top priority of our office,” said Minkler. “Distributing pornography re-victimizes our children every time it is passed from one person to another.”
Prideaux pleaded guilty to the charge immediately before being sentenced yesterday. Prideaux admitted that he used a laptop computer to search for and download child pornography using file sharing software that he loaded on to the computer system. Prideaux operated the computer from his residence in Evansville, Indiana, before the computer was seized by law enforcement investigators on November 1, 2012.
According to Assistant U.S. Attorney, Todd Shellenbarger, who prosecuted the case for the government, Judge Young also imposed a 10 year term of supervised release. During the period of supervised release, Prideaux must register as a sex offender, participate in a sex offender treatment program, and cannot have any unsupervised contact with minors. The Court also ordered the forfeiture of computer equipment used in the offense which will be destroyed by the government. Prideaux must submit to drug testing while on supervision.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood, marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resource.”
New York Man Indicted on Heroin Charge and for Possession of Body ArmorRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a New York man was indicted by a federal grand jury in Harrisburg on charges of possessing 2,500 bags of heroin and body armor during a traffic stop on September 17, 2014.
According to United States Attorney Peter Smith, Terrence T. Byrd, age 37, New York, NY, was charged in a two count indictment with possessing heroin with the intent to distribute and with illegally possessing body armor. Byrd was allegedly stopped by the Pennsylvania State Police for a traffic violation on Interstate 81 in Lower Paxton Township. During a search of the vehicle, troopers recovered body armor and 2,500 bags of heroin. Byrd fled on foot when the contraband was discovered but was apprehended after a brief chase.
Byrd, if convicted, faces up to 20 years imprisonment on the heroin possession charge and a sentence of up to life imprisonment if convicted on the charge of illegally possessing body armor.
The matter was investigated by the Pennsylvania State Police, the Dauphin County District Attorney’s Office and the Drug Enforcement Administration’s Harrisburg Resident Office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New York Man Charged with Cocaine Distribution ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Harrisburg today indicted a New York City man on charges involving unlawful distribution of cocaine.
According to United States Attorney Peter Smith, Wesley Jackson, 50, New York, NY was indicted on charges of unlawfully distributing cocaine and conspiring to distribute cocaine from September to November 2014. Jackson was also charged with using a facility in interstate commerce to cause money to be electronically transferred from Pennsylvania to New York via a money exchange service. The funds allegedly represented the proceeds of illegal drug trafficking. Jackson, if convicted, faces a combined maximum term of imprisonment of 50 years and fines totaling $2,250,000.00.
The case was investigated by the Drug Enforcement Administration’s Harrisburg Resident Office and the Harrisburg Police Department. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
New Orleans C.P.A. Charged with Embezzling over $1.7 MillionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that PAUL E. GARDNER, age 57, of New Orleans, was charged yesterday in a Bill of Information with one count of Wire Fraud alleging embezzlement which took place during GARDNER’s employment with Clovelly Oil Co., L.L.C. (“Clovelly Oil”).
According to documents filed in federal court, for the past thirty years, GARDNER operated an accounting, consulting, and tax preparation business under the name Paul E. Gardner, C.P.A. In October 2007, Clovelly Oil hired GARDNER as a part-time bookkeeper. GARDNER was responsible for recording the receipts and disbursements for Clovelly and preparing the royalty checks for Clovelly’s more than two-hundred owners. In addition, GARDNER handled the bi-weekly payroll for all of Clovelly’s employees and he was responsible for paying himself.
Beginning in August, 2010, and continuing until his termination in May 2014, GARDNER embezzled $1,798,000 from Clovelly Oil by manipulating the bi-weekly payroll records of Clovelly. Every two weeks, GARDNER logged into Clovelly’s on-line bank accounting system using his username and password given to him so he could prepare Clovelly’s payroll and increased his bi-weekly compensation by sometimes as much as $20,000. GARDNER diverted the illegally obtained funds into bank accounts held by the defendant. According to the Bill of Information, GARDNER used the embezzled funds to satisfy gambling debts incurred at a New Orleans casino.
The maximum penalty for wire fraud is twenty years imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba is in charge of the prosecution.
Navajo Man Sentenced to 14 Years Imprisonment for Child AbuseRead the Press Release
PHOENIX – On Dec. 15, 2014, Pernell Corna Sam, 38, of Chinle, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 168 months imprisonment followed by five years of supervised release. Sam pleaded guilty on Aug. 14, 2014, to one count of assault on a child resulting in serious bodily injurySam’s co-defendant, Shonya Sam, also pleaded guilty to one count of assault on a child resulting in serious bodily injury, and was sentenced to 168 months imprisonment on July 1, 2014.
Between Jan. 7 and Jan. 11, 2013, Pernell Sam and Shonya Sam, both members of the Navajo Nation, physically abused a seven-year old relative resulting in serious injuries. The victim was hospitalized and continues to undergo therapy as a result of her injuries.
The investigation in this case was conducted by the Navajo Nation Department of Public Safety and the Federal Bureau of Investigation. The prosecution was handled by Sharon Sexton and Tracy Van Buskirk, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-13-8020-PCT-DLR
RELEASE NUMBER: 2014-075_SamFor 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.Naples Man Indicted for Additional Armed Bank RobberyRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the return of a superseding indictment charging John Robert Haldemann (30, Naples) with three counts of armed bank robbery. He faces a maximum penalty of 25 years in federal prison for each robbery. The indictment also notifies Haldemann that the United States is seeking a money judgment in the amount of $14,308.00, the total proceeds of the robberies.
According to the superseding indictment, Haldemann committed three armed bank robberies in Southwest Florida, including Capital Bank in Venice; Wells Fargo Bank in Naples; and a Bank of America in Punta Gorda.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.This case was investigated by the Federal Bureau of Investigation Violent Crimes Task Force, the Punta Gorda Police Department, the Naples Police Department, the Collier County Sheriff’s Office, the Venice Police Department, and the Sarasota County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney David G. Lazarus.
Mission Man Sentenced for Possession with Intent to Distribute A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on December 15, 2014, by U.S. District Judge Roberto A. Lange.
Jesse James Beauvais, age 43, was sentenced to 2 months in custody, 2 years of supervised release, a $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Beauvais was indicted by a federal grand jury on June 10, 2014. He pled guilty on September 22, 2014.
The conviction stems from an incident that occurred between January 5, 2013, and January 11, 2013, when two search warrants were obtained for Beauvais’ residence. Over a kilo of marijuana, $8,447.00 in cash, four firearms, two bullet proof vests, and other drug-related items were seized from the residence.
This case was investigated by the Northern Plains Save Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller prosecuted the case.
Beauvais was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Charged with Second Degree Murder, Assault and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Second Degree Murder, Assault Resulting in Serious Bodily Injury, and Child Abuse.
Tyler Erickson, Sr., a/k/a TJ Erickson, age 31, was indicted on December 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $250,000 fine, 5 years of supervised release, and $500 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on August 11, 2013, Erickson unlawfully and with malice murdered and assaulted a human being who had not attained the age of 18 years old. The Indictment also alleges that between August 1, 2013, and August 10, 2013, Erickson abused, exposed, tortured, and cruelly punished two children who had not attained the age of 7 years old.
The charges are merely accusations and Erickson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Erickson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Charged with Aggravated Sexual Abuse, Assault and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Child Abuse.
Frederick Leo Marshall, age 56, was indicted on December 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $250,000 fine, not less than 5 years of supervised release, and $700 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about October 30, 2014, Marshall knowingly engaged and attempted to engage in a sexual act with a female victim. He also allegedly assaulted the same victim with a sword, which resulted in serious bodily injury. On the same date, Marshall allegedly abused, exposed, tortured, tormented, and cruelly punished four minor victims.
The charges are merely accusations and Marshall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Marshall was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Milwaukee Man Sentenced to 6 Years in Prison for Unemployment Insurance Fraud and identity TheftRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that, on December 16, 2014, Calvin V. Sanders (52) of Milwaukee, Wisconsin was sentenced in the United States District Court to a total of 76 months imprisonment for his involvement in an unemployment insurance fraud scheme and aggravated identity theft.
In addition to Sanders, four other individuals were convicted of participating in the scheme to defraud by obtaining unemployment insurance benefits through mail and wire fraud. Sanders’ co-conspirators, Travis Arrington (29), Ebony Bates (36), Nicole Porter (39) and Jacob Shaw-Downey (25), received sentences ranging from time served to 10 months imprisonment. Arrington, Bates, and Shaw Downey are Milwaukee residents, and Porter is a resident of Gary, Indiana. In the course of the scheme, the conspirators obtained a total of $357,420 in unemployment insurance benefits from the Wisconsin Department of Workforce Development. The court ordered that $357,420 in restitution be paid by the defendants jointly and severally.
Unemployment insurance benefits are provided by the federal and state government to individuals who have suffered involuntary job loss. According to information disclosed in court, Sanders created several fictitious companies for the purpose of defrauding the government of unemployment insurance benefits. Many accounts were created using the unlawfully obtained names and Social Security Numbers of unsuspecting individuals who were then registered as employees of the fictitious companies for the purpose of receiving unemployment insurance benefits despite the fact that no work was ever performed. In some instances, accounts were created in the names of individuals who knowingly participated in the scheme to defraud the government. A number of the identity theft victims resided in a rehabilitation center located in Gary, Indiana, where co-conspirator Nicole Porter was employed as certified nursing assistant.
In announcing these sentences, United States Attorney Santelle said: “The criminal conduct of these defendants, acting both individually and collectively, defrauded the government of significant amounts of money intended for the legitimate benefit of citizens who have lost employment involuntarily. The sentences imposed on them reflect the serious nature of the fraud and the purposeful victimization of individuals and government programs.” Santelle specifically commended the agents and staff of the United States Department of Labor, the United States Postal Inspection Service, the Wisconsin Department of Justice, and the Wisconsin Department of Workforce Development for their “purposeful, comprehensive, and effective identification and investigation of these defendants, resulting in their criminal convictions and the sentences imposed on them this week.”
“The prosecutions illustrate the Office of Inspector General’s commitment to combating unemployment insurance fraud. We would like to thank the Wisconsin Department of Workforce Development for their support in identifying the unemployment insurance fraud and their investigative partnership in ensuring the accountability and integrity of the program,” stated James Vanderberg, Special Agent-in-Charge of the United States Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Chicago.
The case was investigated by the United States Department of Labor in collaboration with the Wisconsin Department of Justice – Division of Criminal Investigation, the Wisconsin Department of Workforce Development, and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Tracy M. Johnson.
Miami Man Sentenced in $2.3 Million Identity Theft Tax Refund Check Cashing ScamRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Cincinnati Field Office, Kelly R. Jackson, Special Agent in Charge, IRS-CI, Miami Field Office, and Ronald Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Field Office, announce that Christopher Jackson, 42 of Miami, was sentenced to 78 months in prison, followed by three years of supervised release after pleading guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341, for a tax refund scheme that resulted in the cashing of over $2.3 million in fraudulent tax refund checks.
According to the evidence presented at sentencing, from in or around January 2012 through in or around April 2014, the defendant obtained over five hundred fraudulently obtained U.S. Department of Treasury tax refund checks totaling over $2.3 million. The defendant subsequently sent these tax refund checks to a check casher in Cincinnati for cashing. The check casher mailed cash back for these checks to the defendant in Miami. The defendant did not have the authorization of the taxpayer and the defendant supplied either false identification documents or no identification documents to the Cincinnati check casher. Many of the tax refund checks had been obtained using the identity information of people who typically do not file tax returns, such as deceased persons, prisoners, and elderly individuals.
Mr. Ferrer commended the investigative efforts of IRS-CI and USPIS. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
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.
Miami Attorney Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Rashmi Airan-Pace (42, Miami) today pleaded guilty, in Miami, to conspiracy to commit wire, mail, and bank fraud. The Plea Agreement and Information were filed in Tampa and then transferred to the U.S. District Court for the Southern District of Florida, where Airan-Pace pleaded guilty to other charges. As part of the agreement, Airan-Pace will also forfeit property, including $26,973.81, which represents title insurance premiums she earned. Airan-Pace faces a maximum penalty of 5 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in 2005, entities controlled by co-conspirators entered into a contract to purchase The Arbors, an apartment complex in Hillsborough County, Florida. The new owners of the property then engaged in a plan to convert the complex from rental apartments to condominium units. The developers financed their purchase of The Arbors with a loan from Corus Bank, a financial institution whose deposits were insured by the FDIC. The loan agreement imposed strict conditions upon the timing of the conversion process. It prohibited the developers from filing a Declaration of Condominium or closing on any condominium unit unless they had sales on 80 units, and closed on all of them within 45 days of the closing on the sale of the first unit. The loan agreement also specified that Corus Bank was to receive 100% of the net proceeds of the sale of the first 80 units, and that all of these events were to occur within one year of the loan agreement. Under the terms of the Corus loan, no money could go to the buyers and there could be no transactions outside of the HUD-1 settlement statement.
Airan-Pace's role in the conspiracy as the escrow agent included conducting closings on units being sold at The Arbors. She also facilitated the inclusion of material misrepresentations in the closing documents, including the HUD-1 settlement statements. In the process, she facilitated the transfer of funds through accounts under her direct control, knowing that the funds being paid to the buyers were not disclosed in the HUD-1 or to the mortgage lenders, even while verifying and attesting to the accuracy and truthfulness of the HUD-1’s in aid of the scheme.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jay Hoffer and Special Assistant United States Attorney Chris Poor.
Mexican National Guilty of Immigration OffenseRead the Press Release
United States Attorney Kenneth A. Polite announced that APOLINAR MONJE-SANCHEZ, age 42, a native of Mexico, pled guilty today to a one-count indictment for illegal entry of a removed alien.
According to court documents, on October 1, 2014, MONJE-SANCHEZ was found in the United States after having been previously removed from the United States on April 29, 2010.
MONJE-SANCHEZ faces a maximum term of imprisonment of two years, as well as a fine of $250,000. U.S. District Judge Susie Morgan set sentencing for April 8, 2015.
U.S. Attorney Polite praised the work of the U.S. Customs and Border Protection agency in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
Mastermind of $56 Million Medicare Fraud Scheme and Doctor Plead GuiltyRead the Press Release
The organizer of a $56 million Medicare fraud conspiracy and an accomplice physician pleaded guilty today in federal court in Louisiana to health care fraud charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office, Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Regional Office and Louisiana Attorney General James D. “Buddy” Caldwell made the announcement.
Mark Morad, 51, of Slidell, Louisiana, and Dr. Divini Luccioni, 53, of Kenner, Louisiana, each pleaded guilty before Chief U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana today. Morad pleaded guilty to conspiracy to commit health care fraud and conspiracy to falsify records in a federal investigation. Dr. Luccioni pleaded guilty to conspiracy to commit health care fraud. Sentencing hearings for each are scheduled for April 1, 2015.
According to court documents, Morad directed a Medicare fraud scheme through multiple New Orleans-area companies he owned, including Interlink Health Care Services Inc., Memorial Home Health Inc., Lakeland Health Care Services Inc., Lexmark Health Care LLC, and Med Rite Pharmacy Inc. Morad controlled all aspects of these companies, from hiring to deciding what services would be billed. The companies claimed to provide home health services and durable medical equipment (DME) to thousands of Medicare beneficiaries living in and around New Orleans.
Morad paid kickbacks to recruiters who canvassed New Orleans neighborhoods for Medicare beneficiary numbers, which Morad then used to bill Medicare for services that were not medically necessary or not provided. Dr. Luccioni admitted that he signed home health referrals and wrote DME prescriptions that were used to support these fraudulent billings. Specifically, court documents show that Dr. Luccioni falsely certified that beneficiaries were homebound and qualified for home health services, and that he wrote prescriptions for power scooters and other DME that he knew the purported beneficiaries did not need.
When a federal grand jury subpoenaed records from another company Morad owned, he and others fabricated tax and employment records to conceal the companies’ illegal activities and mislead the grand jury.
Medicare billing records showed that between 2007 and 2014, Morad’s companies submitted more than $56 million in claims to Medicare, a vast majority of which were fraudulent. Medicare paid approximately $50.7 million on these claims.
This case was investigated by the FBI, HHS-OIG and the Louisiana Attorney General’s Medicaid Fraud Control Unit, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Louisiana. This case was prosecuted by William G. Kanellis of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Marion County Convicted Felon Facing 15 Years to Life for Possession of A FirearmRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that Jermaine Lamar Harris (31, Ocala) pleaded guilty today to one count of possession of a firearm by a convicted felon. He faces a mandatory minimum term of 15 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in August 2014, Harris sold cocaine and three firearms to a confidential informant working with law enforcement. All of the transactions were video-recorded. Specifically, on August 13, 2014, Harris sold the informant cocaine and a revolver. Six days later, the informant returned to Harris’s residence and purchased additional cocaine from him. Finally, on August 26, 2014, Harris arranged for the informant to purchase a semi-automatic handgun from another person. As they waited for that person to arrive, Harris sold the informant an unloaded rifle that Harris kept in his residence. When the second person sold the informant a handgun, Harris kept the money from that transaction as well. Harris was subsequently arrested on September 23, 2014.
Harris was a previously convicted felon at the time of the offenses and was therefore prohibited from possessing firearms or ammunition under federal law. His numerous prior drug sale convictions qualify him for a sentencing enhancement as an Armed Career Criminal under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to reduce violent crime in our communities.
Maria C. Edrosa Sentenced to 78 Months in PrisonRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced the sentencing of defendant MARIA C. EDROSA by the Honorable Frances Tydingco-Gatewood, Chief Judge, District Court of Guam. EDROSA was one of the defendants in the Organized Crime Drug Enforcement Task Force (OCDETF) case, United States v. Sardoma, et al. Defendant EDROSA received a 78-month sentence of imprisonment and three years of supervised release to follow, for disposal of a firearm to a felon, defendant Mateo Sardoma, in violation of 18 U.S.C. § 922(d)(1) and 18 U.S.C. § 924 (a)(2). The Court took into account the participation of defendant EDROSA in a Conspiracy to Distribute Methamphetamine run by her boyfriend, Mateo Sardoma.
The drug conspiracy involved a scheme to bring methamphetamine to Guam from the Philippines and California. This methamphetamine was traded for firearms, stolen items and for cash. Large amounts of cash were mailed to California including $35,000 on March 24, 2011 and $59,900 sent again on April 18, 2011 in exchange for multiple pound quantities of methamphetamine. Sardoma and EDROSA made improvements to their Dededo residence between April and June of 2011 in cash payments to the contractor of approx. $53,340. Defendant EDROSA assisted in the distribution of these narcotics, the shipment of cash through the mails and she purchased airline tickets to further the scheme. She also furnished a firearm to defendant Sardoma for use in the narcotics conspiracy. The firearm furnished by EDROSA was used by Sardoma to maintain control of the methamphetamine organization, and in the kidnapping, torture and brutal assault of one victim on October 24, 2011.
U.S. Attorney Limtiaco stated, "Our community is not immune from the poison of methamphetamine. This case illustrates the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam." This conviction resulted from the concerted efforts of law enforcement partners in the OCDETF investigation, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
The investigating agencies include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Department of Homeland Security/U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI), U.S. Coast Guard Investigative Service (USCGIS), U.S. Postal Inspection Service (USPIS), Guam Police Department (GPD) and Guam Customs & Quarantine Agency (GC&QA). The case was prosecuted by Assistant United States Attorneys Frederick Black and Stephen Leon Guerrero.
Manhattan U.S. Attorney Announces Arrests of International Arms Traffickers for Conspiracy to Kill Americans and Related Terrorism ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele Leonhart, Administrator of the United States Drug Enforcement Administration (“DEA”), announced today the arrests of CRISTIAN VINTILA (“VINTILA”), MASSIMO ROMAGNOLI (“ROMAGNOLI”), and VIRGIL FLAVIU GEORGESCU (“GEORGESCU”), international arms traffickers charged with conspiring to sell large quantities of military-grade weaponry to the Fuerzas Armadas Revolucionarias de Colombia (the “FARC”) – a designated foreign terrorist organization – to be used to kill Americans in Colombia. VINTILA and GEORGESCU were arrested in Podgorica, Montenegro, by Montenegrin authorities Monday as they prepared to finalize the transaction. ROMAGNOLI was arrested in Montenegro yesterday by Montenegrin authorities.
U.S. Attorney Preet Bharara said: “As alleged, Vintila, Romagnoli, and Georgescu attempted to sell military-grade weapons, from pistols to rocket launchers, to people they believed were associated with a terrorist group. Now they will no longer be able to participate in this illicit trade.”
DEA Administrator Michele Leonhart said: “Ruthless global weapons traffickers pose a direct threat to the safety and stability of the United States and to the rule of law. DEA's strong international partnerships have once again made the difference in disrupting a conspiracy that could have put innocent American lives in grave danger. Nothing is more important than the overall safety and security of our citizens. Thankfully, these alleged conspirators are out of business and will hopefully soon face U.S. justice.”
According to the Indictment unsealed yesterday in Manhattan federal court:
Since May 2014, VINTILA has been a Romania-based weapons trafficker, ROMAGNOLI has been a Europe-based weapons trafficker, who is able to procure fraudulent end-user certificates (“EUCs”) for military-grade weaponry, and GEORGESCU has been a Romania-based weapons broker. Between May and October 2014, VINTILA, ROMAGNOLI, and GEORGESCU conspired to sell an arsenal of weapons, including machine guns and anti-aircraft cannons, with the understanding that the weapons would go to the FARC to be used by the FARC against the United States. During a series of recorded telephone calls and in-person meetings, VINTILA, ROMAGNOLI, and GEORGESCU agreed to sell the weapons to three confidential sources working with the DEA (“CSs”), who represented that they were acquiring these weapons for the FARC. VINTILA, ROMAGNOLI, and GEORGESCU agreed to provide these weapons to the CSs with the specific understanding that the weapons would be used to kill Americans and, in particular, to shoot down American helicopters and airplanes. ROMAGNOLI further agreed to provide fraudulent EUCs, in order to make the illegal sale of weapons look legitimate.
During their consensually recorded meetings, VINTILA and ROMAGNOLI provided the CSs with catalogues of military-grade weapons they were prepared to provide the FARC. VINTILA gave the CSs a catalogue of weapons that included pistols, machine guns, and other high-powered weaponry, and ROMAGNOLI showed the CSs a catalogue that included automatic weapons and shoulder-fired rocket launchers. ROMAGNOLI additionally showed one of the CSs a sample fraudulent EUC. VINTILA, ROMAGNOLI, and GEORGESCU also discussed the logistics of receiving payment for the weapons from the CSs and delivering the weapons to the FARC.
The Indictment charges VINTILA, 44, ROMAGNOLI, 43, and GEORGESCU, 42, with two separate terrorism offenses:
Count One charges all three defendants with conspiracy to kill United States officers or employees, in violation of Title 18, United States Code, Sections 1114 and 1117. If convicted of Count One, each defendant faces a maximum sentence of life in prison. Count Two charges all three defendants with conspiracy to provide material support or resources to a designated foreign terrorist organization, in violation of Title 18, United States Code, Section 2339B. If convicted of Count Two, each defendant faces a maximum sentence of 15 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative efforts of the DEA’s Special Operations Division, the DEA’s Bucharest Country Office, the DEA’s Rome Country Office, the Montenegrin National Police, and the Romanian Authorities. The arrests are also the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York, the National Security Division of the U.S. Department of Justice, and the Justice Department’s Office of International Affairs.
The case is being prosecuted by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Andrea Lee Surratt and Ilan Graff are in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Vintila et al. Indictment
Local Artist Sentenced for ObsecenityRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Lawrence F. Brose, 63, of Buffalo, NY, who was convicted of importation or transportation of obscene matters, was sentenced to two years probation to include computer monitoring.
Assistant U.S. Attorney Michael DiGiacomo, who handled the case, stated that the investigation against the defendant began after a German police agency contacted United States Immigration and Customs Enforcement and advised them that an IP address in the United States downloaded some images of suspected child pornography. ICE Special Agents determined that the IP address was registered to Brose. Agents met with the defendant and during the meeting, Brose admitted to viewing images. An examination of the defendant’s computer resulted in agents finding various images, including one of a minor male less than 16 years of age engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The plea was the culmination of an investigation on the part of Special Agents of United States Immigration and Custom Enforcement, Homeland Security Investigations, under the direction of James C. Spero.
Lebanese Weapons Smuggler Sentenced to PrisonRead the Press Release
Tampa, FL – U.S. District Judge Elizabeth A. Kovachevich today sentenced Yasser Ahmad Obeid (20, St. Petersburg and Lebanon) to four years and three months in federal prison for conspiring to smuggle firearms and attempting to export firearms from the United States. Obeid pleaded guilty on October 8, 2014.
According to court documents, Obeid and his co-defendant, Jordanian National Mahmoud Abdel-Ghani Mohammad Assaf were part of a network of individuals involved in smuggling firearms from the United States to the Middle East by concealing them in vehicles purchased at used car auctions in the Central Florida area, and then exporting them overseas. Obeid worked for Assaf and others to acquire the firearms and also acted as Assaf’s translator and middle-man in arranging the purchases from various sources. The men were arrested after Obeid arranged for Assaf to purchase 30 Glock firearms from an individual who, unbeknownst to the men, was an undercover federal agent.
The case against Assaf is still pending trial.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations – Tampa National Security Group. It is being prosecuted by Assistant United States Attorney Josephine W. Thomas.
Las Cruces Man Sentenced to Eight Years in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
Manzanares Prosecuted as Part of Federal “Worst of the Worst” Anti-Violence Initiative
ALBUQUERQUE – George Arthur Manzanares, 44, of Las Cruces, N.M. was sentenced this morning in Las Cruces federal court to 96 months in federal prison for violating the federal firearms laws. Manzanares will be on supervised release for three years after completing his term of incarceration.
Manzanares was arrested in Mar. 2013, on a criminal complaint charging him with being a felon in possession of a firearm. The complaint alleged that Manzanares unlawfully possessed a firearm and ammunition from Sept. 30, 2011 through Dec. 5, 2011, in Doña Ana County, N.M. At the time, Manzanares was prohibited from possessing firearms or ammunition because he previously had been convicted of several felony offenses, including aggravated assault with a deadly weapon and trafficking a controlled substance. In Sept. 2013, Manzanares was indicted and charged with three counts of being a felon in possession of a firearm.
On April 9, 2014, Manzanares entered a guilty plea to the three-count indictment and admitted unlawfully possessing firearms and ammunition on Sept. 30, 2011, Oct. 19, 2011, and Dec. 5, 2011. In his plea agreement, Manzanares admitted selling firearms and ammunition to an undercover agent on each of the three dates.
This case was investigated by the Southern New Mexico Gang Task Force of the Las Cruces office of the FBI and the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The case was prosecuted as part of a federal anti-violence initiative that targets the “worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with new Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Lakeland Cocaine Dealer Sentenced to 10 Years for Cocaine TraffickingRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Kesner Joly (53, Lakeland) to 10 years in federal prison for conspiracy to distribute cocaine. Joly pleaded guilty on September 3, 2014.
According to court documents, Joly was a kilogram-level cocaine distributor in the Central Florida area. On multiple occasions in 2013, he acquired kilograms of cocaine from South Florida and delivered the drugs to individuals located in the Middle District of Florida. During the conspiracy, Joly distributed at least five kilograms of cocaine in this fashion. Law enforcement seized a total of four kilograms delivered by Joly, as well as $68,000 from prior cocaine transactions.
This case was investigated by the Drug Enforcement Administration, the Polk County Sheriff’s Office, and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Andrew C. Searle.
Jury Finds Man Guilty of Second Degree Murder on the Meskwaki National SettlementRead the Press Release
A man who used a machete to kill his parents on the Meskwaki Nation Settlement was convicted by a jury today after an eight-day trial in federal court in Cedar Rapids.
Gordon Lasley, Jr., age 26, from the Meskwaki Nation Settlement, Iowa, was convicted of two counts of second degree murder in “Indian country.” The verdict was returned this afternoon following about one day of jury deliberations.
The evidence at trial showed that, on February 5, 2014, Lasley murdered Gordon Lasley, Sr. and Kim Renee Lasley at their home on the Meskwaki Nation Settlement by striking them with a machete. Lasley’s attorneys unsuccessfully argued Lasley was insane at the time of the murders and should not be held criminally responsible for the murders.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Lasley remains in custody of the United States Marshal pending sentencing. Lasley faces a possible maximum sentence of life imprisonment, a $500,000 fine, $200 in special assessments, and up ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys CJ Williams and Anthony Morfitt and was investigated by the Meskwaki Nation Tribal Police Department, the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-00045.Jury Convicts Chicago Couple on All Counts Chargedin Multi-million Dollar State Grant Fraud SchemeRead the Press Release
Springfield, Ill. – A jury in Springfield, Ill., deliberated approximately five hours today before returning guilty verdicts on all counts charged against Leon Dingle, Jr., and his wife, Karin Dingle, of Chicago. The Dingles were charged with taking $3.35 million from grant funds awarded by the Illinois Department of Public Health for their personal benefit and to pay personal expenses. Sentencing is scheduled on April 9, 2015, before U.S. District Judge Richard Mills.
During the time of the fraud scheme, from 2004 to June 2010, the Dingles owned and operated the for-profit corporation known as Advance Health, Social and Educational Associates, Inc., (AHSEA). Leon Dingle, 77, served as the president, CEO, treasurer, and sole shareholder of AHSEA; Karin Dingle, 75, served as vice-president and secretary. Leon and Karin Dingle were charged with using non-profit organizations as straw grantees to fraudulently solicit and obtain more than $11 million in grant funds from the Illinois Department of Public Health. The majority of the grant funds were non-competitively awarded and paid up-front, for programs relating to breast, cervical and prostate cancer, HIV/AIDS, and emergency preparedness.
“Today, the court specifically noted its appreciation for the excellent work of the law enforcement agents and to all parties involved in the presentation of the case to the jury over eight weeks of trial,” said U.S. Attorney Lewis. “We too, are extremely appreciative of the extraordinary work by the agents of the U.S. Postal Inspection Service, IRS Criminal Investigation, and the Illinois Secretary of State’s Office of Inspector General. Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois.Two co-defendants, Jacquelyn Kilpatrick, 59, and Edmond Clemons, 68, previously entered pleas of guilty related to their respective roles in the fraud. Kilpatrick, bookkeeper and vice-president of operations for AHSEA, pled guilty on Oct. 17, 2014, to one count of mail fraud and to an information charging her with filing a false income tax return. Kilpatrick is scheduled for sentencing on Feb. 18. Kilpatrick, with Clemons, also operated another business, known as Jeck Consultants, LLC. On Oct. 2, 2014, Clemons pled guilty to an information charging him with filing a false income tax return. Sentencing for Clemons is scheduled on Feb. 12, 2015.
At sentencing, the maximum statutory penalty for conspiracy to defraud (one count as to each defendant) is up to five years in prison; for each count of mail fraud (Leon Dingle 10 counts; Karin Dingle four counts) and for money laundering (Leon Dingle two counts; Karin Dingle one count) the penalty is up to 20 years in prison.
James Cameron Sentenced to 15 and 3/4 Years on Child Pornography and Contempt ChargesRead the Press Release
Contact: Donald E. Clark
Gail Fisk Malone
Assistant United States Attorneys
Tel: (207) 780-3257Bangor, Maine: The United States Attorney’s Office announced that James M.
Cameron, 52, formerly of Hallowell, Maine, was sentenced in U.S. District Court by Chief
Judge John A. Woodcock, Jr., to 15 and 3/4 years in prison to be followed by six years of supervised release. On August 23, 2010, following a six-day bench trial, the defendant was found guilty by Chief Judge Woodcock of 13 counts of transporting, receiving and possessing child pornography. Following the conviction, the defendant was jailed. He was indicted on
February 11, 2009.The Indictment arose out of four types of activity that occurred over a 17-month period between July 2006 and December 2007: (1) the uploading of child pornography images and videos by the defendant from a computer in his residence to Yahoo! photo albums and briefcases he created; (2) the sending and receiving of child pornography over Google Hello, a free chat and file sharing computer program, by the defendant using laptop computers he carried while on trips and family vacations; (3) the receipt by the defendant of e-mails containing child pornography; and (4) the possession of child pornography on computers found at his residence.
All of the computers were seized from his residence on December 21, 2007 during the execution of a search warrant.On March 10, 2011, Chief Judge Woodcock sentenced the defendant to 16 years in prison and 10 years of supervised release. On August 9, 2011, the 1st Circuit Court of Appeals (“1st
Circuit”) granted the defendant’s motion to be released on bail pending appeal and he was released on August 11, 2011. On that same date, Chief Judge Woodcock set bail conditions including that the defendant submit to active GPS location monitoring. On November 14, 2012, the 1st Circuit reversed the defendant’s convictions on six counts but affirmed his convictions on the seven remaining counts. As a result, the defendant remained convicted of transporting, receiving and possessing child pornography.Following 1st Circuit’s decision on the appeal, the defendant cut off his GPS location monitoring bracelet and fled in violation of the bail order. On December 2, 2012, he was arrested by United States Marshals in New Mexico and thereafter returned to Maine. On
February 19, 2013, he pled guilty to Criminal Contempt for violating the bail order.From August 1990 until April 2008, the defendant worked as an Assistant Attorney
General for the State of Maine, primarily handling drug prosecutions.At re-sentencing, Chief Judge Woodcock found that the offenses involved 150-300 child pornography images, that the images depicted prepubescent children, sadistic and other violent conduct, that the defendant traded the images in order to obtain such images from others, that the defendant did not accept responsibility for his conduct by waiting to admit his guilt until after he was convicted and that the defendant obstructed justice when he fled.
The Office of the United States Attorney praised the investigation conducted by the
Maine State Police Computer Crimes Unit and the United States Marshals Service.Indictment: Kansans Were Victims of Cancer Cure Fraud SchemeRead the Press Release
TOPEKA, KAN. – A Tulsa woman who used the Internet to market what she called her “secret sauce” to cancer victims in Kansas and elsewhere was indicted Wednesday on 13 counts of wire fraud, U.S. Attorney Barry Grissom said.
A federal grand jury returned a 13-count indictment against Maureen Long, 64, Tulsa, Okla. The indictment alleges Long’s Internet-based business, Camelot Cancer Care, Inc., preyed on people who were desperately seeking cures for cancer by selling them infusions of drugs that were misbranded and not approved for treating cancer.
Long, who was not a physician, a nurse or any other kind of licensed medical professional, used her Web site and email to create the false impression she was running a legitimate medical clinic. She sold clients drugs that the Food and Drug Administration – she called it the “Federal Death Administration” -- had not approved for treating cancer.
Eleven Kansas residents paid more than $128,000 total for Long’s treatments. Residents of Kansas towns including Lenexa, Spring Hill, Hartford, Prairie Village, Hesston, Ottawa and Mt. Hope were among the victims. They had been diagnosed with illnesses including ovarian cancer, esophageal cancer, rectal and lymph cancer, non-Hodgkin’s lymphoma, cervical cancer, non-small cell lung cancer, brain tumor and breast cancer.
The indictment also alleges Long:
- Falsely claimed that Camelot had a 60 percent success rate resulting in either remission of cancer or stopping a tumor’s growth.
- Marketed something she called the “DMSO Protocol,” which was supposed to consist of DMSO, Vitamin C and Vitamin B-17 (also known as Amygdalin or Laetrile). A forensic chemical analysis of some of the products, however, found neither DMSO nor Laetrile.
- Distributed marketing materials claiming the infusion she sold would cut through malignancy “like a scythe through a wheat field.”
- Charged $12,000 or more for a first round of treatment and $3,600 for each subsequent round.
- Instructed clients to forego traditional treatments of radiation and chemotherapy.
If convicted, Long faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The Food and Drug Administration investigated. Assistant U.S. Attorney Tanya Treadway is prosecuting.
Idabel Woman Arraigned for Murder During Perpetration of Child Abuse of Two Year Old GirlRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DAKOTA LANE WILLISTON, age 19, of Idabel, Oklahoma was arraigned in federal court today.
The defendant is charged with Murder in the First Degree in Indian Country Committed During the Perpetration of Child Abuse, in violation of Title 18, United States Code, Sections 1111, 1151 and 1153, punishable by imprisonment for life and/or up to $250,000.00 fine.
The Indictment alleges that on about July 23, 2013, in the Eastern District of Oklahoma, in Indian country, DAKOTA LANE WILLISTON, an Indian, did unlawfully kill Payton Cockrell, a 2 year old female human being, during the perpetration of child abuse, as defined by Title 18, United States Code, Section 1111(c)(3), against Payton Cockrell.
The charges are a result of an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, the McCurtain County Sheriff’s Office and the Choctaw Nation Tribal Police.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant was remanded into the custody of the United States Marshal Service.
Assistant United States Attorney Dean Burris represented the United States.
Horse Trainer Pleads Guilty to Rigging RacesRead the Press Release
A Central Pennsylvania thoroughbred horse trainer who races horses at Penn National Race Course in Grantville pled guilty in Dauphin County Court in Harrisburg yesterday to rigging races by administering drugs to horses on race day in violation of rules and regulations banning such treatment.
The United States Attorney’s Office for the Middle District of Pennsylvania and the Dauphin County District Attorney’s Office announced that David J. Wells, 50, Grantville, pled guilty before Court of Common Pleas Judge Deborah E. Curcillo to a charge of rigging publicly exhibited contests, in this case, thoroughbred races at Penn National Race Course. The offense is punishable by up to 5 years imprisonment and a $10,000 fine. Judge Curcillo ordered the preparation of a presentence investigation report and set sentencing for January 29, 2015.
The prosecution stemmed from an investigation conducted by the FBI, the Pennsylvania Department of Agriculture’s Racing Commission, the Pennsylvania State Police and the Dauphin County District Attorney’s Office into alleged wrongdoing in races at Penn National Race Course. As part of the investigation, Daniel Robertson, the official clocker at Penn National, was indicted in U.S. District Court on federal wire fraud charges in November 2013 and pleaded guilty on July 22, 2014.
The Wells investigation was transferred to the Dauphin County District Attorney’s Office for prosecution of the violation of state law. Assistant United States Attorney William A. Behe was specially appointed by Dauphin County District Attorney Edward Marsico as a Deputy District Attorney to handle the Wells prosecution.
At the guilty plea hearing yesterday, Wells admitted that he orally or by hypodermic injection illegally administered drugs to horses he trained and raced to give him and his horses an advantage in the races and that he was fully aware that this was in violation of racing rules and regulations. Wells also said that efforts were made to conceal this activity from the public and the Racing Commission. The criminal complaint, filed in October 2014, alleged that the activity took place between 2008 and 2012.
Honolulu Businessman Indicted on Tax ChargesRead the Press Release
HONOLULU – A federal grand jury today indicted Albert S.N. Hee of Honolulu on seven counts of corrupt interference with the administration of the Internal Revenue laws and six counts of submitting a false tax return for the years 2007, 2008, 2009, 2010, 2011, and 2012. The indictment superseded a prior one-count indictment in September 2014, which had charged the false tax return for 2007 alone.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said the superseding indictment alleges that:
- from 2002 to 2012, Hee caused Waimana Enterprises Inc. (WEI), a company incorporated by Hee and the stock of which is owned by Hee, to pay a total of $4,063,294.39 of his personal expenses, including $718,559.09 used to pay for tuition, books and rent payments for Hee’s three college age children; a purchase of a house in Santa Clara, CA for $1,313,261.34 and used exclusively by Hee’s two children; $33,523.00 of college tuition payments for Hee’s child; $92,000.00 in payments for personal massages for Hee; $121,878.87 in personal credit card charges by Hee; $722,550.39 in false wages paid to Hee’s three children who did no work for WEI; $590,201.56 of false wages paid to Hee’s wife who did no work for WEI; $443,103.64 of false employment benefits paid on behalf of Hee’s three children and wife who did no work for WEI, and $28,216.50 of cash withdrawals by Hee.
- Albert Hee instructed an employee of WEI to pay some of these expenses, and classify them as business educational expenses. Hee’s return preparer then reclassified the expenses as loans.
- Albert Hee did not claim the $4,063,294.39 in personal expenses that WEI paid, which should have been reported as income on his personal tax returns filed for the years 2002 to 2012, resulting in personal federal taxes due in the amount of $425,988.00.
- Because Hee improperly deducted some of the personal expenses as business expenses, WEI underpaid its Federal corporate taxes in the amount of $140,651.00.
If convicted, Hee faces up to three years imprisonment and a fine of up to $250,000 on each of the 13 charges. The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The investigation of this case was conducted by the Internal Revenue Service -- Criminal Investigation. The prosecution is being handled by Assistant U.S. Attorney Leslie E. Osborne, Jr.
Holden Woman Sentenced to 18 Months for Stealing Nearly $1 Million from Elderly In-LawsRead the Press Release
BOSTON – A Holden woman was sentenced today in U.S. District Court in Worcester in connection with a scheme to steal nearly $1 million from her elderly in-laws.
Chiao Fang Ku, 45, was sentenced by U.S. District Court Judge Timothy S. Hillman to 18 months in prison, one year of supervised release, and ordered to pay $954,571 in restitution. In August 2014, Ku pleaded guilty to one count of wire fraud.
After Ku’s father-in-law became ill in 2008, Ku offered to help her mother-in-law manage the couple’s finances. Ku was given access to her in-laws’ savings and investment accounts. She thereafter began siphoning funds from those accounts through online transfers, forged checks, and cash withdrawals. Ku used the money for on-line gambling activities and other personal uses. She also obtained credit cards in her mother-in-law’s name without authorization, and then used those cards for personal expenses. In total, Ku stole over $950,000 from her in-laws over a five-year period.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Eric P. Christofferson of Ortiz’s Economic Crimes Unit.