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17 December 2014
Hialeah Man Sentenced to Prison for Operating A Fraudulent Website Selling “Walt Disney World” TicketsRead the Press Release
Orlando, Florida – U.S. District Judge G. Kendall Sharp today sentenced Raul Cruz (37, Hialeah) to five years in federal prison for credit card fraud. As part of his sentence, the Court also entered a money judgment in the amount of $159,219.94, the proceeds of the fraud. Cruz pleaded guilty on August 26, 2014.
According to court documents, Cruz purchased Walt Disney World Co. theme park tickets over the phone using stolen credit card numbers that he, in turn, had purchased from business owners in South Florida. To sell the tickets, Cruz created a shell company called “Disney Computer SE” and a website (www.disneycomputerservice.com), both of which utilized the name “Disney” to give the appearance of legitimacy. Using the website and shell company, Cruz resold the tickets to the public. During the course of the fraudulent schem, Cruz purchased over $159,000 worth of Walt Disney World Co. tickets.
This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Daniel C. Irick.
Georgia Woman Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LORI DEXTER, age 52, of Atlanta, Georgia, pled guilty today to a one-count Superseding Bill of Information charging her with conspiracy to distribute and possess with intent to distribute methamphetamine.
According to the Bill of Information, beginning on a date unknown and continuing until on or about September 8, 2013, DEXTER knowingly combined, conspired, confederated and agreed with persons known and unknown, to distribute and possess with the intent to distribute a quantity of methamphetamine.
DEXTER faces a maximum term of imprisonment of twenty years and a fine of $1,000,000, three years of supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Martin L. C. Feldman set sentencing for April 22, 2015.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Andre’ Jones is in charge of the prosecution.
Galveston Woman Sentenced for Collin County Mortgage FraudRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 68 year-old Galveston, Texas woman has been sentenced to federal prison for federal violations related to a mortgage fraud scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Yvonne Gumaer pleaded guilty on Jan. 22, 2013 to making a false statement in connection with an FHA insured home loan and was sentenced to 33 months in federal prison today by U.S. District Judge Richard Schell. Gumaer was also ordered to pay restitution in the amount of $791,782.89.
According to information presented in court, Gumaer was an escrow officer at Regency Title Company ("RTC") in Collin County. In 2008, Gumaer conspired with Larry Reisman, Kathy Moore, and others to knowingly and willfully make a materially false statement, for the purpose of influencing the FHA to insure a mortgage loan made to another person to purchase property known as the Thistle Way III Property from Reisman. Specifically, Reisman, the seller of the property, had not and would not pay or reimburse the borrower for any part of the borrower's closing costs which had not been disclosed in the sales contract, a violation of 18 U.S.C. § 1014. This scheme resulted in losses to mortgage lenders, including The Federal National Mortgage Association (Fannie Mae) and The Federal Home Loan Mortgage Corporation (Freddie Mac). Gumaer was indicted by a federal grand jury on Mar. 15, 2012.
Others who have been sentenced in connection with the mortgage fraud schemes include
Kathy Moore, 50, of Broken Arrow, Oklahoma, who was sentenced to 24 months in federal prison and ordered to pay restitution in the amount of $774,377.63; and Larry Reisman, 52, of Dallas, who was sentenced to 42 months in federal prison and ordered to pay restitution in the amount of $1.5 million.This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by HUD-Office of Inspector General, IRS Criminal Investigation, Federal Bureau of Investigation, Federal Housing Finance Agency-Office of Inspector General, U.S. Secret Service, and U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorneys Andy Williams and Chris Eason.
Freedom Industries officials indicted in January chemical spillRead the Press Release
CHARLESTON, W.Va. – U.S. Attorney Booth Goodwin today announced that Freedom Industries, Inc. (Freedom) and six former Freedom officials have been charged with various federal crimes related to the January 2014 Elk River chemical spill in Charleston.
“Just a mile and a half upstream from Charleston’s primary source of drinking water, the conditions at the Freedom Industries facility were not only grievously unacceptable, but unlawful. They put an entire population needlessly at risk. As these actions make clear, such conduct cannot, and will not, be tolerated," said Attorney General Eric Holder. “These law enforcement actions send an unambiguous message: that compliance with environmental safety standards is an obligation, not a choice. The Department of Justice is committed to vigorously enforcing the Clean Water Act and other natural resource protections. And we will never rest in our efforts to protect the American people – and our environment – from harm."
“It’s hard to overstate the disruption that results when 300,000 people suddenly lose clean water,” said Goodwin. “This is exactly the kind of scenario that the Clean Water Act is designed to prevent. This spill, which was completely preventable, happened to take place in this district, but it could have happened anywhere. If we don’t want it to happen again, we need to make it crystal clear that those who engage in the kind of criminal behavior that led to this crisis will be held accountable.”
Former Freedom President Gary L. Southern, 53, currently of Marco Island, Florida, along with former Freedom owners and officers Dennis P. Farrell, 58, of Charleston, William E. Tis, 60, of Verona, Pennsylvania, and Charles E. Herzing, 63, of McMurray, Pennsylvania, were indicted by a grand jury sitting at Beckley, West Virginia. Freedom environmental consultant Robert J. Reynolds, 63, of Apex, North Carolina, and tank farm plant manager Michael E. Burdette, 60, of Dunbar, West Virginia, were charged by Goodwin in charging documents known as “informations.” Freedom Industries, Inc., was also charged in an information.
Southern is charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Southern is also charged with wire fraud and various bankruptcy fraud charges. If Southern is convicted of all the charges contained in the indictment, he is exposed to a statutory maximum of 68 years in prison.
Farrell, Tis and Herzing are charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. If Farrell, Tis and Herzing are convicted of all the charges with which they are charged in the indictment, they are each exposed to a statutory maximum of three years in prison.
The misconduct alleged in the indictment includes, but is not limited to:
- Failure to properly maintain the containment area surrounding the tanks at Freedom’s Elk River facility, and to make necessary repairs to ensure the containment area would contain a chemical spill;
- failure to properly inspect a tank containing the chemical MCHM;
- failure to develop and implement a spill prevention, control and countermeasures plan;
- failure to develop and implement a stormwater pollution prevention plan and groundwater protection plan, both requirements of a National Pollutant Discharge Elimination System Permit.
During the time they were responsible corporate officers for Freedom, Farrell, Tis, Herzing and Southern allegedly approved funding only for those projects that would result in increased business revenue for Freedom, or that were immediately necessary for required equipment maintenance. They allegedly failed to take action to fund other repair and upkeep projects for equipment and systems necessary for environmental compliance at the Elk River facility, including repairing defects in a containment wall, addressing drainage problems in the containment area, and developing and implementing proper protection plans.
Information charges were also filed against Freedom itself, as well as Robert J. Reynolds and Michael E. Burdette. Freedom is charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Michael Burdette, the former plant manager for the Freedom facility on the Elk River, and Robert Reynolds, also one of the individuals responsible for environmental compliance at Freedom, have each been charged with violating the Clean Water Act.
Charges contained in indictments and informations are merely accusations, and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Click here to view the indictment
Click here to view the Information regarding Freedom Industries
Click here to view the Information regarding Michael Burdette
Click here to view the Information regarding Robert Reynolds
Freedom Industries Officials Indicted in January Chemical SpillRead the Press Release
U.S. Attorney Booth Goodwin today announced that Freedom Industries Inc. (Freedom) and six former Freedom officials have been charged with various federal crimes related to the January 2014 Elk River chemical spill in Charleston.
“Just a mile upstream from Charleston’s primary source of drinking water, the conditions at the Freedom Industries facility were not only grievously unacceptable, but unlawful,” said Attorney General Eric Holder. “They put an entire population needlessly at risk. As these actions make clear, such conduct cannot, and will not, be tolerated. These law enforcement actions send an unambiguous message: that compliance with environmental safety standards is an obligation, not a choice. The Department of Justice is committed to vigorously enforcing the Clean Water Act and other natural resource protections. And we will never rest in our efforts to protect the American people – and our environment – from harm.”
“It’s hard to overstate the disruption that results when 300,000 people suddenly lose clean water,” said Goodwin. “This is exactly the kind of scenario that the Clean Water Act is designed to prevent. This spill, which was completely preventable, happened to take place in this district, but it could have happened anywhere. If we don’t want it to happen again, we need to make it crystal clear that those who engage in the kind of criminal behavior that led to this crisis will be held accountable.”
Former Freedom President Gary L. Southern, 53, currently of Marco Island, Florida, along with former Freedom owners and officers Dennis P. Farrell, 58, of Charleston, William E. Tis, 60, of Verona, Pennsylvania, and Charles E. Herzing, 63, of McMurray, Pennsylvania, were indicted by a grand jury sitting at Beckley, West Virginia. Freedom environmental consultant Robert J. Reynolds, 63, of Apex, North Carolina, and tank farm plant manager Michael E. Burdette, 60, of Dunbar, West Virginia, were charged by U.S. Attorney Goodwin in charging documents known as “informations.” Freedom Industries Inc., was also charged in an information.
Southern is charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Southern is also charged with bankruptcy fraud, mail fraud and wire fraud. If Southern is convicted of all the charges contained in the indictment, he is exposed to a statutory maximum of 68 years in prison.
Farrell, Tis and Herzing are charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. If Farrell, Tis and Herzing are convicted of all the charges with which they are charged in the indictment, they are each exposed to a statutory maximum of three years in prison.
The misconduct alleged in the indictment includes, but is not limited to:
-
Failure to properly maintain the containment area surrounding the tanks at Freedom’s Elk River facility, and to make necessary repairs to ensure the containment area would contain a chemical spill;
-
failure to properly inspect a tank containing the chemical MCHM;
-
failure to develop and implement a spill prevention, control and countermeasures plan;
-
failure to develop and implement a stormwater pollution prevention plan and groundwater protection plan, both requirements of a National Pollutant Discharge Elimination System Permit.
During the time they were responsible corporate officers for Freedom, Farrell, Tis, Herzing and Southern allegedly approved funding only for those projects that would result in increased business revenue for Freedom, or that were immediately necessary for required equipment maintenance. They allegedly failed to take action to fund other repair and upkeep projects for equipment and systems necessary for environmental compliance at the Elk River facility, including repairing defects in a containment wall, addressing drainage problems in the containment area, and developing and implementing proper protection plans.
Information charges were also filed against Freedom itself, as well as Robert J. Reynolds and Michael E. Burdette. Freedom is charged with the negligent discharge of a pollutant in violation of the Clean Water Act, negligent discharge of refuse matter in violation of the Refuse Act, and violating an environmental permit. Michael Burdette, the former plant manager for the Freedom facility on the Elk River, and Robert Reynolds, also one of the individuals responsible for environmental compliance at Freedom, have each been charged with violating the Clean Water Act.
Charges contained in indictments and informations are merely accusations, and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Franklin County Man Sentenced to Prison for Mailing Threatening CommunicationRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Jeremy Robitaille, 29, of Franklin County, Vermont, was sentenced on December 16, 2014, in United States District Court in Brattleboro, Vermont, to serve a term of 36 months imprisonment and a two-year period of supervised release following his conviction on one count of mailing a threatening communication, in violation of 18 U.S.C. § 876(c). Judge J. Garvan Murtha also ordered Robitaille to pay a $100 special assessment.
According to court records and proceedings, on April 22, 2013, Robitaille, who was then in prison serving a lengthy sentence following his conviction in Vermont state court for assault and robbery, mailed a letter addressed to the Burlington District Courthouse on Cherry Street in Burlington. This letter contained a threat to injure all of the clerks and judges working in the courthouse. As a result of the threatening letter, the courthouse had to be searched thoroughly by police with bomb-sniffing dogs to ensure that it was safe. Robitaille, who had a significant criminal history, told law enforcement that he sent the letter in an attempt to secure a transfer from a facility where he was not happy.
United States Attorney Coffin commended the efforts of the Federal Bureau of Investigation and the Vermont State Police in the investigation and prosecution of Robitaille.
The prosecution of Robitaille was handled by Assistant U.S. Attorney Barbara A. Masterson. Robitaille was represented by Assistant Federal Public Defender Steven L. Barth.
Four People Sentenced to Prison for $360,000 Identity Theft SchemeRead the Press Release
A Cleveland Heights woman was sentenced to nearly 15 years in prison for his role in a widespread identity-theft scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Darnell Nash, 29, was sentenced today to 175 months in prison and ordered to pay $361,341 in restitution. She is the last of four people to be sentenced in the identity theft scheme.
"This crime ring stole people's identities and used them to illegally get hundreds of thousands of dollars," Dettelbach said.
“This sentence sends a clear message that those seeking to commit unemployment insurance fraud will be held accountable. Combating unemployment insurance fraud remains a high priority for the Office of Inspector General. We will continue to work with our law enforcement partners to aggressively investigate those who obtain benefits to which they are not entitled,” said James Vanderberg, Special Agent-in-Charge of the Chicago Regional Office of the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Nash, Kennard Berts, 21, of Cleveland Heights, Dwayne Buchannan, Jr., 22, of Cleveland, and Justin Davis, 26, of Cleveland Heights, indictmented in October on charges including conspiracy to commit mail and wire fraud, mail fraud, wire fraud, aggravated identity theft, and money laundering.
The defendants each entered guilty pleas to charges of conspiracy, mail and wire fraud, and aggravated identity theft. Nash and Berts also entered guilty pleas to money laundering. Approximately $100,000 seized during the investigation was also ordered forfeited to the United States.
U.S. District Judge Donald C. Nugent sentenced Davis to 74 months in prison, Berts to 61 months in prison and Buchannan to 54 months in prison earlier this year.
The defendants were also ordered to pay restitution in the amount of $361,341 to the six state unemployment offices affected.
The defendants executed a “fictitious employer” scheme from about March 2012 to January 2013. They submitted false paperwork to various States’ unemployment-insurance offices where the defendants registered employers that did not actually exist and reported non-existent earnings for fictitious employees. The defendants then submitted false claims for unemployment-insurance benefits of the purported employees, according to court documents.
The defendants used actual individuals’ personal identifying information that the defendants had obtained fraudulently through various misrepresentations including distribution of flyers in urban areas purporting to offer assistance vouchers for food, housing, furniture and clothing. When the individuals called a telephone number listed on the flyers, they were asked to provide personal identifying information, which the defendants later used to file fraudulent claims for unemployment insurance benefits totaling $361,341, according to court documents.
The case was prosecuted by Assistant United States Attorneys, Robert W. Kern, M. Kendra Klump, and James Morford following an investigation by the Department of Labor’s Office of the Inspector General, the United States Secret Service, the United States Postal Inspector, and the Social Security Administration’s Office of Inspector General. Cleveland Heights Police Department also assisted the investigation.
Four Men Indicted on Federal Gun ChargesRead the Press Release
All Defendants Have Previous Convictions And Were Prohibited From Possessing Firearms
CHARLOTTE, N.C. – Four Charlotte men with previous criminal convictions have been indicted on federal gun charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. A federal grand jury returned the criminal indictments on Tuesday, December 16, 2014, against Carlton Calvin Wilson, 28, Dominic Xavier McDonald, 28, Brendan Cornelius Penn, 25, and Tory Lorenzo Vaszquez, 25, all of Charlotte, charging them with multiple counts of possession of a firearm by a convicted felon.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department join U.S. Attorney Tompkins in making today’s announcement.
According to the four criminal indictments and other filed court documents, the defendants unlawfully possessed firearms despite having previous criminal convictions, which prohibit them from possessing weapons. Wilson’s six-count indictment alleges that, from September through November 2014, Wilson illegally possessed 11 firearms, including four pistols, five revolvers and two shotguns. Penn’s indictment alleges that in October 2014, Penn illegally possessed three firearms, and has been charged with three counts of possession of firearm by a convicted felon in connection with that conduct. A third indictment charges McDonald with four counts of possession of a firearm by a convicted felon. According to allegations contained in the indictment, in October 2014, McDonald possessed six firearms, including two pistols, one revolver and two rifles. A fourth indictment charges Vasquez with one count of possession of a firearm by a convicted felon for possessing two pistols in October 2014.
All four defendants are currently in federal custody. They face a maximum of 10 years in prison and a $250,000 fine for each count.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation was handled by ATF and CMPD Violent Task Force. The case was prosecuted by Assistant United States Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte.
Fort Myers Felon Sentenced to Fifteen Years for Possessing AmmunitionRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele has sentenced Jerry Ward (48, Fort Myers) to 15 years in federal prison for being a felon in possession of ammunition. He was found guilty by a Fort Myers federal jury on June 12, 2014.
Ward was arrested following a confrontation with a Lee County Sheriff’s deputy, on June 14, 2012, during which Ward dumped the contents of a pillow case, including two rounds of .45 caliber ammunition, onto the deputy’s patrol car. Trial evidence showed that Ward had disposed of a gun upon seeing the deputy approaching in his patrol car. Ward was previously convicted felon at the time of the offense and was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Robert P. Barclift.
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.
Former Symantec Marketing Director Pleads Guilty to Embezzlement ChargesRead the Press Release
SAN JOSE – Lena “Mickey” Jacobs Coombs pleaded guilty yesterday afternoon on wire fraud charges alleging she embezzled money from her former employer, Symantec, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Coombs admitted in her plea agreement that from January 2010 through April 2012 she was employed by Symantec as a Director of Marketing and worked at Symantec’s Lindon, Utah facility outside of Salt Lake City. Between January 2010 and May 2012, Coombs used various methods to embezzle a total of over $1.137 million from Symantec. Coombs admitted that she spent these embezzled Symantec funds on various personal expenses such as such as trips to Hawaii and the 2012 Super Bowl in Indianapolis, concerts, home remodeling, automobile payments, and a personal nanny. Coombs charged personal and other unauthorized expenses on the Symantec American Express Cards and then knowingly submitted fraudulent expense reports to disguise these charges as legitimate business expenses. Coombs also submitted fraudulent invoices falsely claiming that a shell company she had created had done marketing work for Symantec. Coombs then diverted the payments on those fraudulent invoices for her personal use.
Coombs, 48, of Highland, Utah, was charged by indictment on June 11, 2014, with 26 counts of wire fraud in violation of 18 U.S.C. § 1343, and 10 counts of money laundering, in violation of 18 U.S.C. § 1957(a). Under the plea agreement, Coombs pleaded guilty to one count of wire fraud.
Coombs’ sentencing hearing is scheduled for April 1, 2015, at 9:30 a.m. before the Honorable Lucy H. Koh, United States District Court Judge, in San Jose. The maximum statutory penalty for wire fraud, in violation of 18 U.S.C. § 1343, is 20 years in prison and a fine of $250,000, plus restitution. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Former State Prison Inmate Pleads Guilty to Mailing Threatening Communications to JudgeRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a former Pennsylvania state prison inmate pleaded guilty today in Scranton before Senior U.S. District Court Judge James M. Munley to mailing a letter threatening to injure and kill a Monroe County Common Pleas Judge.
According to United States Attorney Peter Smith, the defendant, Devon Williams, age 25, admitted that while he was an inmate at the State Correctional Institution in Albion, Pennsylvania, he mailed a letter from the prison in January 2014 to the judge’s chambers at the Monroe County Courthouse in Stroudsburg. The letter threatened harm and death to the judge.
Williams was indicted by a federal grand jury in September 2014, as a result of an investigation by the United States Postal Inspection Service and the Pennsylvania State Police.
Judge Munley scheduled sentencing for March 24, 2015. Williams faces up to five years in prison and a $250,000 fine. Williams is detained in federal custody pending sentencing.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Former Postal Employee Pleads Guilty to Obstruction of the MailsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jennifer Paonessa, 33, of Niagara Falls, NY, pleaded guilty before U.S. Magistrate Judge H. Kenneth Schroeder, Jr., to obstruction of the mails. The charge carries a maximum penalty of six months in prison, a fine of $5,000, or both.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that the defendant, a former employee of the United States Postal Service, delayed or failed to deliver mail matter entrusted to her for delivery. The defendant took at least 15 Victoria Secret coupons and used them for her own benefit.
The plea is the culmination of an investigation on the part of Special Agents of the United States Postal Service, Office of the Inspector General, under the direction of Monica Weyler.
Sentencing is scheduled for March 17, 2015, at 10:00 a.m. before Judge Schroeder.
Former Miami-Dade County Employee Sentenced for Tax EvasionRead the Press Release
A Coral Gables, Florida, resident and former employee of the General Services Administration (GSA) of Miami-Dade County was sentenced to serve 51 months in prison for tax evasion to be followed by three years of supervised release, and ordered to pay $556,254 in restitution to the U.S. Treasury, the Justice Department and Internal Revenue Service (IRS) announced today.
On Oct. 15, 2014, Jesus Pons pleaded guilty to one count of tax evasion in the U.S. District Court for the Southern District of Florida. According to the court documents, Pons was a computer services manager at the GSA of Miami-Dade County. He was responsible for managing and allocating resources to information technology projects for the county. Court filings also establish that he was responsible for supervising and managing tasks performed by county vendors. From 2007 to 2011, Pons received money in the form of illegal kickback payments from two county vendors, Data Industries and Paradyne Consulting Services. In exchange for these illegal kickbacks, Pons approved payments from Miami-Dade County to the vendors for consulting work that was never performed. According to the plea agreement, Pons did not report the illegal kickbacks on his tax returns. From 2007 through 2011, Pons earned $1,666,998 in income from the scheme that he did not report to the IRS, causing $556,254 in tax loss.
This case was investigated by special agents of IRS-Criminal Investigation. The case was prosecuted by Trial Attorneys Jeffrey A. McLellan and Erin Pulice of the Justice Department’s Tax Division.
Former Marine Pleads Guilty to Wrongful Receipt of Benefits Based on Falsified Military RecordsRead the Press Release
BOSTON – A Wakefield veteran pleaded guilty today to stealing $174,000 in benefits paid to him based upon falsified Vietnam War service records.
Albert L. Seely, 67, pleaded guilty today before Senior U.S. District Court Judge Rya W. Zobel. Seely admitted to theft of government funds from October 1, 1999 through July 1, 2014. Sentencing is scheduled for March 18, 2015.
Seely, a former U.S. Marine, was deployed to Vietnam and served there from 1966 to 1967. In December 1970, Seely filed his discharge papers with the Veterans Benefit Administration (VBA) and misrepresented the dates and places of his deployment in Vietnam. He also falsely listed numerous decorations, including two Purple Hearts, a Vietnam Cross of Gallantry, a Bronze Star, and a Silver Star. In March 1999, Seely applied for and received VBA disability payments based upon his false claims of combat and valor. He ultimately fraudulently obtained $174,656 in government benefits. In February 2014, the VBA terminated his benefits after his fraud was revealed.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, a fine of $250,000, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, and Jeffrey G. Hughes, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crime Unit.
Former Jamestown Man Pleads Guilty to Pump and Dump Securites and Tax FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Eric C. Cusimano, 33, of Lakeway, Texas, pleaded guilty before U.S. District Court Judge Richard J. Arcara, to conspiracy to commit securities fraud and tax evasion. Each charge carries a maximum sentence of five years in prison and a fine of $250,000.
“Because of the relentless quest of some to steal your money, it is imperative that those planning to invest their hard earned resources be equally diligent when considering their investment strategy,” said U.S. Attorney Hochul. “For our part, this Office will continue to aggressively pursue individuals who perpetrate financial frauds, whether such criminals are located in this country or abroad.”
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between September 2009 and January 9, 2012, the defendant and others participated in a stock fraud scheme that utilized several websites registered through an internet domain registrar and web hosting company. The scheme was designed to fraudulently inflate the prices of publically traded stocks of companies, generally stocks of companies with low stock prices (“penny stocks”). Investors were deceived into believing that prices at which they bought and sold the stocks were determined by supply and demand, not rigged by manipulators. Such a scheme is frequently referred to as “pump-and-dump.”
One of the websites involved in this scheme was www.bestdamnpennystocks.com. The website was used to tout approximately 52 penny stocks. During the course of the scheme, Cusimano and others were compensated by third-parties to tout certain penny stocks. In total, the defendant was compensated $1,218,783 during the course of the scheme which involved at least 250 victims.
Furthermore, during the tax years 2008 to 2011, Cusimano owned and operated Premire Consulting, Inc., which was utilized to promote penny stocks. During these years, Premire received from the defendant’s penny stock promotion business, unreported gross receipts totaling $7,921,706, and corrected taxable income totaling $1,218,783. As a result of the unreported income, the total tax due and owing is $657,005.
As part of his plea, the defendant forfeited $1,218,783.00 in United States currency as well as two pieces of property in the Southern Tier, a 26’ Pontoon boat, several valuable pieces of jewelry and approximately $340,000 from accounts he held in Panama and Belize. The money from the bank accounts was seized by the United States Attorneys Office earlier this year utilizing a repatriation order. It marked the first time that this much money has been repatriated back to the Western District of New York.
The plea is the culmination of an investigation on the part of the United States Secret Service, under the direction Acting Special Agent in Charge Michael Adelizzio, the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office Charge, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero. Assistance was also provided by the Financial Industry Regulatory Authority.
Sentencing is scheduled for March 26, 2015 at 1:00 p.m. before Judge Arcara.
Former Harrison County Supervisor Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
Gulfport, Miss. – Harrison County Supervisor Kim Savant, 65, of Gulfport, pled guilty today in U.S. District Court to conspiracy to commit bribery in connection with his role as a board member of the Harrison County Utility Authority, announced U.S. Attorney Gregory K. Davis, FBI Special Agent in Charge Donald Alway, and Acting Special Agent in Charge Jerome R. McDuffie with IRS Criminal Investigation.
A criminal Bill of Information was filed against Savant on November 14, 2014, charging him with conspiracy to commit bribery, which carries a maximum sentence of 5 years in prison, a $250,000.00 fine, and up to three years of supervised release. He will be sentenced by U.S. District Judge Sul Ozerden on March 26, 2015 at 9:00 a.m.
From January, 2011, through January, 2013, Savant was a Supervisor for Harrison County, Mississippi, and was a member of the board of the Harrison County Utility Authority (“HCUA”). The HCUA was responsible for managing water, wastewater, storm water and solid waste services in Harrison County, among other things. During this period of time, Savant conspired with another person to commit bribery, that is, Savant performed official actions such as voting for the awarding of HCUA contracts, payments, emergency work and other work worth millions of dollars to a particular company in exchange for Savant receiving $1,500.00 cash per month from a representative of that company.
“When public officials turn to financial gain in exchange for official acts, we will prosecute them to the fullest extent of the law,” said U.S. Attorney Gregory K. Davis. “Public corruption, particularly among our elected officials, undermines the public’s confidence in our system of government. I thank the Assistant U. S. Attorneys, FBI, and IRS - Criminal Investigation for their efforts in the investigation and prosecution of this case.”
Jerome R. McDuffie, Acting Special Agent in Charge, IRS – Criminal Investigation, stated: “All those entrusted to serve the public, whether appointed or elected, should be held to the very highest standards of fiscal responsibility and integrity. It is vitally important that federal funds go toward their intended use and the execution of the mission-critical business. IRS - Criminal Investigation will continue to work with our law enforcement partners in the investigation and potential prosecution of individuals involved in program fraud and the misuse of public monies.”
This case was investigated by the FBI and the IRS - Criminal Investigation. Assistant U.S. Attorney Mike Hurst is prosecuting the case.Former Cordele Resident and Recidivist Pleads Guilty to Child Pornography ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Christopher B. Wilcox, aged 41, formerly of Cordele, Georgia, entered a guilty plea to one count of possession of child pornography on December 15, 2014, before the Honorable W. Louis Sands, U.S. District Court Judge, in Albany, Georgia.This is not Mr. Wilcox’s first offence involving child victims. At the time of the crime to which he pled guilty, he was on supervised release from a previous conviction in the United States District Court for the Middle District of Georgia for possession of child pornography in March, 2003, for which he received a sentence of 33 months in prison. He was also subsequently convicted of aggravated child abuse in Crisp County Superior Court in February 2005, for which he was on probation at the time of his latest offense. Mr. Wilcox is currently serving a 10 year parole revocation of this state sentence based on this new offense.
The current charges stem from a search done of the contents of Mr. Wilcox’s computer by the United States Probation Officer overseeing his supervised release for his 2003 conviction.
Because he has two previous felony convictions, Mr. Wilcox faces a maximum possible sentence of twenty (20) years imprisonment, a maximum fine of $250,000, or both. He will also be required to register as a sex offender. He will be sentenced in about 60 days.
“This very worthwhile prosecution brings to justice a recidivist who, judging from his criminal history, is a threat to children in our community whenever he is not incarcerated,” said U.S. Attorney Michael Moore.The case was investigated by the Federal Bureau of Investigation, Albany. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Former Chief of Baltimore City Division of Transit and Marine Services Pleads Guilty to Bribery SchemeRead the Press Release
Took $20,000 to Cancel Debt Owed to City and Took $70,000 to “Sell” Government Property
Baltimore, Maryland - Barry Stephen Robinson, age 65, of Accokeek, Maryland, pleaded guilty today to two counts of bribery, and one count of money laundering, in connection with a bribery scheme perpetrated earlier this year while he was Chief of the Division of Transit and Marine Services of the Baltimore City Department of Transportation.The guilty plea was announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City Inspector General Robert H. Pearre, Jr.; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Barry Stephen Robinson took a $20,000 bribe to cancel a $60,000 debt owed to Baltimore City, and a $70,000 bribe to allow the theft of city property worth $250,000,” said U.S. Attorney Rod J. Rosenstein. “This sort of corruption can occur when dishonest people are trusted to handle valuable government property.”
“The amount of money Barry Robinson admitted to accepting demonstrates his willingness to line his own pockets in exchange for his influence, and his actions are why many people distrust the government. Any public servant who puts a price on his or her position doesn’t have the greater good in mind and they should be held accountable,” said Steve Vogt, Special Agent in Charge of the Baltimore Division of the FBI.
“Using his official position and the resources of Baltimore City, Robinson abused the trust placed in him in order to personally enrich himself,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “IRS-Criminal Investigation stands committed to weed out individuals, such as Robinson, who take the path to financial enhancement through greed and corruption at the expense of those they serve.”
Barry Robinson was Chief of the Division of Transit and Marine Services of the Baltimore City Department of Transportation and supervised Baltimore City’s “Circulator” and “Water Taxi” programs. He had authority to approve contracts with advertisers and vendors and to purchase and pay for goods and services.
In the spring of 2013, Robinson received a check for $40,000 payable to the Baltimore City Director of Finance, in payment for advertising on Circulator buses. Robinson allegedly returned the check and proposed that for $20,000 in cash, he would cancel the $40,000 debt to the city and provide written documentation that it had been paid. The debtor declined the offer at that time. In January 2014, Robinson renewed his offer to extinguish the debt to the City of Baltimore. This time, he offered to cancel $60,000 of debt in return for $20,000 in cash. From January 23 to March 11, 2014, Robinson received four cash payments of $5,000 each. In return, Robinson provided a signed letter on Baltimore City letterhead falsely stating that the $60,000 debt had been paid.
Robinson also admitted that he took a $70,000 bribe to sell unused city bus shelters. In 2011, Robinson arranged for Baltimore City to purchase 13 bus shelters from a Canadian company for $249,290. On multiple occasions from May 2013 to March 2014, Robinson said since the city did not keep track of the shelters, he planned to sell them for his personal benefit. On April 9, 2014, Robinson accepted $70,000, in return for the city’s bus shelters.
Seeking to disguise the source of the bribery proceeds, Robinson deposited the cash bribe payments he received into two bank accounts in the name of another person, and used a portion of the proceeds to install carpeting, televisions and a range hood in his home.
Robinson faces a maximum sentence of 20 years in prison for money laundering and 10 years in prison on each of two bribery counts. Chief U.S. District Judge Catherine C. Blake has scheduled sentencing for March 27, 2015, at 10:00 a.m.
U.S. Attorney Rod J. Rosenstein praised the FBI, the Baltimore City Office of Inspector General and IRS-Criminal Investigation, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Barbara S. Sale, who is prosecuting the case.
Former Charlotte Resident Indicted on Securities and Wire Fraud ChargesRead the Press Release
CHARLOTTE, N.C. – On Tuesday, December 16, 2014, a grand jury sitting in Charlotte returned a federal indictment against Michael Francis Egan, III, 32, formerly of Charlotte, charging him with securities fraud and wire fraud in connection with a fraudulent investment scheme, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to allegations contained in the criminal indictment, from August 2007 to February 2012, Egan engaged in a fraudulent investment scheme by inducing his victims to enter into various fictitious business and investment contracts. The indictment alleges that Egan promised that he would invest the victims’ money in various projects, such as Halloween themed attractions, holiday themed attractions, land development and investment deals, and television shows, among others, when, in reality, Egan did not invest victims’ money as promised. According to allegations contained in the indictment, Egan further induced his victims to invest with him by lying about his financial background and personal assets. For example, the indictment alleges that Egan forged brokerage account statements to reflect fraudulent balances when, in reality, those accounts had no money or a fraction of the purported amount.
According to allegations contained in the indictment, Egan also lied to his investors about his professional connections and his investments. For example, as alleged in the indictment, Egan falsely told his victims he was a close associate and friend of the CEO of a major bank, a close associate or employee of a well-known investment mogul and that he owned a percentage of well-known hotels and casinos in Las Vegas. According to the indictment, instead of investing the victims’ money as promised, Egan used it to fund his lifestyle and to pay for personal expenses such as rent, his car lease, groceries, restaurants medical bills and pet care, among others.
Egan will be ordered by the U.S. District Court to appear on a summons for his initial appearance, which will be scheduled by the Court. If convicted, Egan faces a maximum of 20 years in prison and a $5 million fine for the securities fraud count and a 20 year prison term and a $250,000 fine for the wire fraud count.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI investigated the case. The prosecution is being handled by Assistant U.S. Attorney Kevin Zolot of the Western District of North Carolina.
Final Member of Crack Cocaine Conspiracy SentencedRead the Press Release
HARRISONBURG, VIRGINIA – A Florida man, who along with eight other individuals conspired to sell large quantities of crack cocaine in the Winchester, Va. area, was sentenced this morning in the United States District Court for the Western District of Virginia in Harrisonburg.
Ethan Edward Jackson, 26, of Winchester, Va. and Clewiston, Fl., pled guilty in January 2014 to one count of conspiring to distribute and possess with the intent to distribute more than 280 grams of crack cocaine. This morning in District Court, Jackson was sentenced to 120 months’ imprisonment and five years of supervised release.
“These defendants operated a sophisticated illegal business importing dangerous drugs into our community,” United States Attorney Timothy J. Heaphy said today. “We must do all we can to punish those who profit from the addiction of others. We must also pursue education and treatment programs to reduce the demand for illegal drugs. A comprehensive approach is necessary in our continuing struggle to stem the flow of illegal drugs into our communities.”
In all, nine individuals have been convicted of trafficking large amounts of crack cocaine from Florida to the Winchester area for distribution. The crack cocaine brought into Winchester was sold in usually $50-$250 quantities and was sold to both end-users and other distributors. Members of the conspiracy made multiple runs to Florida per month and often operated out of hotels in the Winchester area. They traveled together, stayed in hotel rooms near one another and provided drugs to each other to further the conspiracy. One co-conspirator, Jeremiah Dion McMillan, was also transporting pressed heroin – heroin that had been compressed into pill form to resemble prescription pills – and prescription pills to the area and selling them here. Another co-conspirator, Johnny Lewis Hunter, transported and distributed powder cocaine in addition to crack cocaine from Florida.
Previously sentenced for their roles in the conspiracy are Kareem Lomax Robinson, 204 months; Bobby Clyde Stewart Jr., 180 months; Jeremiah Dion McMillian, 132 months; Johnny Lewis Hunter, 120 months; Lacy Leann Shuck, 120 months; Andrew James Thomas, 120 months; Wendal Anthony Ferguson, 96 months; Susan Ann Ruppenthal, 24 months.
The investigation of the case was conducted by the Northwest Virginia Regional Drug Task Force, which includes the Virginia State Police, and the Drug Enforcement Administration. The Task Force includes law enforcement from the counties of Frederick, Clarke, Shenandoah, Warren and Page as well as the cities and towns of Winchester, Front Royal and Strasburg. Assistant United States Attorney Elizabeth Wright prosecuted the case for the United States.
Final Defendant Charged in Curry County Drug Trafficking Ring Enters Guilty PleaRead the Press Release
ALBUQUERQUE – Tina Tafoya, 33, of Clovis, N.M., pleaded guilty today to participating in a methamphetamine trafficking conspiracy in Curry County, N.M. Tafoya is the last of four defendants to enter a guilty plea in this case.Tafoya and her three co-defendants, Christopher Jason Kidd, 38, and John Jesse Perez, Jr., 45, both of Clovis, N.M., and Jeannette Driever, 37, of Grady, N.M., were indicted in Feb. 2014, on federal methamphetamine trafficking charges. Count 1 of the three-count indictment charged that the four defendants conspired to distribute methamphetamine in Curry County, N.M., between Sept. 2013 and Nov. 2013. Count 2 charged Kidd and Tafoya with possession of methamphetamine with intent to distribute on Nov. 6, 2013, and Count 3 charged Driever and Perez with possession of methamphetamine with intent to distribute on that same day.
In entering her guilty plea, Tafoya admitted conspiring with Kidd, Driever and Perez to distribute methamphetamine in Curry County in fall of 2013. Tafoya has been in federal custody since her arrest. She remains in custody pending her sentencing hearing which has yet to be scheduled. Under the terms of her plea agreement, Tafoya will be sentenced to 78 months in federal prison followed by five years of supervised release.
Kidd entered his guilty plea on Nov. 17, 2014, and admitted conspiring with his co-defendants to distribute methamphetamine in Curry County. Kidd admitted that he and Tafoya supplied quantities of methamphetamine to others, including Driever and Perez, who resold the methamphetamine in smaller quantities to users. According to Kidd’s plea agreement, on Nov. 9, 2013, Kidd and Tafoya supplied a pound of methamphetamine to Driever and Perez. On that day, Kidd and Tafoya possessed another half-pound of methamphetamine at their residence. The methamphetamine was seized later that day pursuant to search warrants.
Driever and Perez entered guilty pleas to federal drug trafficking charges on Nov. 20, 2014. Each pleaded guilty to participating in a conspiracy to distribute methamphetamine in Curry County. Driever admitted that she and Perez obtained quantities of methamphetamine from Kidd and Tafoya that they distributed to others. Perez acknowledged participating in a methamphetamine trafficking conspiracy that involved Driever, Kidd, Tafoya and others.
Tafoya’s co-defendants will be sentenced to the following terms of incarceration under the terms of their respective plea agreements: Kidd will serve 78 months; Driever will serve 60 months; and Perez will serve 36 months. Each will serve a five year term of supervised release after completing his or her prison sentence. All three remain in custody pending their sentencing hearings, which have not been scheduled.
This case was investigated by the Las Cruces Agency Office of the FBI’s Albuquerque Division, the Region V Drug Task Force and the New Mexico State Police, with assistance from the Ninth Judicial District Attorney’s Office. The Region V Drug Task Force is comprised of the Clovis Police Department, the Portales Police Department, Curry County Sheriff’s Office and the Roosevelt County Sheriff’s Office. Assistant U.S. Attorney Nicholas Jon Ganjei is prosecuting the case.Fifteen Charged in Third Wave of Federal Drug Trafficking Money Laundering, and Firearm Violation IndictmentsRead the Press Release
Follow @NDFLNewsPENSACOLA—Thirteen individuals from the Houston, Texas, and Pensacola areas were jointly indicted on federal drug trafficking and money laundering violations. They include:
Rodney D. Butler, 48; Vernetta E. Harrison, 31; Aston Ingram, 49; Antonio Blackwell, 30; Anthony Fisher, Jr., 25; Terrance D. Goodman, 38; Dexter A. Locke, 26; Michael A. McCants, 27; Lamarcus D. Ries, 28; Rodney D. Ries, 26; Nastassja N. Sassau, 27; Charlie N. Steans, 47; and
Terrance T. Stone, 33.In conjunction with this thirteen co-defendant indictment, Darius D. Williams, 24, and Marheem R. Smith, 23, of Pensacola, were separately indicted on related federal firearms charges. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
First appearances will take place before United States Magistrate Judges in Pensacola, Florida, and Houston, Texas, and a projected trial date is February 2015 in Pensacola.
These indictments are part of a continuing investigation into the transportation of cocaine from Texas into the Northern District of Florida. U.S. Attorney Marsh praised the work of the Drug Enforcement Administration; Homeland Security Investigations; the Internal Revenue Service; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Escambia County Sheriff’s Office; the Santa Rosa County Sheriff’s Office; the Gulf Breeze Police Department; the Pensacola Police Department; and the State Attorney’s Office, whose joint investigation led to the indictments in the case. The cases are being prosecuted by Assistant U.S. Attorney David L. Goldberg.
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. The defendant is presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial 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.
Federal Inmate Charged in Connection with an Assault of Another InmateRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Federal Grand Jury in Scranton has returned a three-count indictment charging an inmate at the United States Penitentiary at Canaan, Pennsylvania, with participating in an assault of another inmate with dangerous weapons. James Banks, age 33, formerly of Tennessee, was charged with assault, conspiracy to commit assault, and with the illegal possession of a weapon by an inmate.
According to United States Attorney Peter Smith, the victim was another inmate who was stabbed by Banks’ coconspirator with a sharpened weapon commonly referred to as a shank. Banks allegedly participated in the assault by attempting to strike the victim with a lock attached to a length of cloth during the attack.
On December 4, 2014, Senior United States District Court Judge Richard P. Conaboy sentenced Banks’ coconspirator, Johnnie Williams, age 36, formerly of Memphis, Tennessee, to 30 months’ imprisonment for stabbing the victim. On September 10, 2014, Williams pleaded guilty to conspiracy to commit the assault.
The case was investigated by the FBI and the Special Investigation Section at USP-Canaan. Prosecution is assigned to Assistant United States Attorney John Gurganus.
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.
In this particular case, the maximum penalty under the federal statute is ten years’ imprisonment for the assault, and five years’ imprisonment for the conspiracy charge and the weapon possession charge. Banks also faces a term of supervised release following imprisonment, and a fine if convicted. 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.
****Essex County, New Jersey, Tax Return Preparer Sentenced to 57 Months in Prison for Filing Tax Returns Using a Dead Person's IdentityRead the Press Release
Obtained More Than $350,000 in Fraudulent Tax Refunds
NEWARK, N.J. – An Essex County, New Jersey, tax return preparer was sentenced today to 57 months in prison for filing false claims with the IRS using a dead tax return preparer’s identification and preparing false documents for numerous fraudulent loans, U.S. Attorney Paul J. Fishman announced.
Todd P. Halpern, 49, previously pleaded guilty before U.S. District Judge William J. Martini to an information charging him with one count of filing false claims and one count of wire fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements in court:
In late 2008, Halpern purchased A & V Financial (A & V), a tax return preparation business located in Guttenberg, New Jersey, from the wife of the prior owner, identified only as “V.R.,” who had died in March 2008. Halpern received the company’s computers and all of its client records. As part of the agreement to purchase A & V, Halpern was to obtain a new Electronic Filing Identification Number (EFIN) in his own name. Instead, he continued to file tax returns using V.R.’s EFIN number because Halpern’s criminal record prevented him from obtaining an EFIN.
From 2009 through 2010, Halpern prepared and filed 657 fraudulent federal income tax returns with the IRS using V.R.’s EFIN. Halpern prepared and filed some of these fraudulent tax returns without the knowledge and authorization of the taxpayers identified on the returns. Some of these tax returns contained fraudulent income and deduction amounts, which generated fraudulent refunds that were directly deposited into Halpern’s bank account.
On June 24, 2009, Halpern prepared and filed a fraudulent 2008 U.S. Individual Income Tax Return 1040 form with the IRS in the name of B.G., which fraudulently claimed an income tax refund in the amount of $13,183. The 2008 1040 form prepared by Halpern contained false income and deduction entries for B.G., because B.G. did not have any income for that tax year and did not file an income tax return. The $13,183 tax refund was directly deposited into Halpern’s bank account.
Halpern received a total of $373,938 in fraudulent tax refunds. He used these funds to support his lavish lifestyle, including purchases at Prada, Chanel, Saks Fifth Avenue, and Bloomingdales, to acquire season tickets to the New York Giants, to purchase thousands of dollars in jewelry, gold coins, and silver certificates, to make car payments on multiple luxury vehicles, including a 2007 Cadillac Escalade and a 2008 Lexus GX-470, and to buy parts for his classic 1957 Chevy Bel Air.
From January 2008 through May 2012, Halpern prepared false documents for numerous fraudulent loans from financial institutions. Halpern prepared tax returns, W-2 forms, and bank statements showing inflated income and asset balances to be used to support loan applications for borrowers, including him, to acquire mortgage loans, primarily involving residential properties in New Jersey, as well as other personal and business loans. Halpern and others caused the fraudulent documents to be submitted to mortgage lenders, other financial institutions, the U.S. Department of Housing and Urban Development, and the Federal Housing Administration (FHA), which were relied upon for the approval of mortgage and other loans.
In November 2009, Halpern served as the buyer for the short sale of 215 Newark Ave., Bloomfield, New Jersey, from seller B.S. for a purchase price of approximately $185,000. In support of Halpern’s purchase of this property, an FHA-insured mortgage loan for Halpern in the amount of $181,649 was obtained from a New Jersey-based mortgage company. Halpern and others submitted numerous fraudulent documents to FHA and to the mortgage company, including false bank statements, pay stubs and 2008 federal income tax returns in Halpern and his wife’s names. As in his tax fraud scheme, the false tax returns that Halpern prepared reflected V.R.’s identification number in an effort to conceal that Halpern had personally prepared the tax returns.
At the plea hearing, the Judge Martini also entered a consent judgment and order of forfeiture for $373,938 and for a classic 1957 Chevy Bel Air, which constitutes the proceeds that Halpern obtained as a result of his frauds. In addition to the prison term, Judge Martini also sentenced Halpern to serve five years of supervised release and pay restitution of $1.3 million.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Cary Rubenstein, with the investigation leading to today’s sentencing.The government is represented by Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Criminal Division in Newark.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
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Defense counsel: Marshall J. Wofsy Esq., Jersey City, N.J.Elyria Man Sentenced to 20 Years in Prison for Selling Heroin and Fatal FentanylRead the Press Release
An Elyria man was sentenced to 20 years in prison for distributing heroin and fentanyl, including fentanyl that caused the death of an Elyria resident last year, law enforcement officials said.
The sentence announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, Ohio Attorney General Mike DeWine and Elyria Police Chief Duane Whitely.
Siarres R. Noble, age 29, pleaded guilty earlier this year to four counts of distribution of fentanyl, two counts of distribution of heroin and one count of possession with intent to distribute fentanyl.
Noble admitted selling heroin and fentanyl at various times in March and November 2013, including fentanyl that he sold on November 8, 2013, which resulted in the death of an Elyria resident one day later.
“The drugs sold by this defendant killed a woman,” Dettelbach said. “Heroin and fentanyl use leads to death, destroys lives and damages families. This should send a clear message to drug dealers who are doing nothing more than selling poison, that we in law enforcement will work death and overdose cases back from the victims, identify who supplied them the drugs and hold them accountable for their actions.”
“Siarres Noble did not just sell heroin – he sold poison and a woman is dead because of his actions,” Anthony said. “Today’s sentence demonstrates the seriousness of these cases and the strength of our commitment to working them with our local partners.”
“There will be consequences for those who continue to feed addiction in this state, and as today’s sentence makes clear, dealers will be held accountable for deaths caused by their drug sales,” said Attorney General DeWine. “Law enforcement will continue to collaborate on the state, federal, and local level to hold drug dealers and those who assist them responsible.”
Elyria Police Chief Duane Whitely said: “There is a serious drug problem in this country and it is important that law enforcement at every level take the steps necessary to combat the sales of illegal drugs. Sadly, in this case, the sale of drugs led to someone’s death. The weapon used may not have been a gun, but it is just as deadly.
“I want to thank everyone involved in this case for the effort they put into it. Starting with the response from Elyria Police Investigative Unit for responding so quickly to the spike in overdoses that led to the arrest of Siarres Noble for selling the drugs that led to the death. I appreciate the great working relationship with have with the FBI and the U.S. Attorney’s office. It is the strong working relationship between all of these agencies that led to the federal conviction of Siarres Noble,” Whitely said.
This case was investigated by the Elyria Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Robert F. Corts and Vasile C. Katsaros and Special Assistant United States Attorney Margaret Tomaro of the Ohio Attorney General’s Office.
Eleven Indicted in Heroin and Cocaine Distribution RingRead the Press Release
KNOXVILLE, Tenn. – On Dec. 16, 2014, a federal grand jury returned a one-count indictment against 11 individuals for conspiracy to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin and five kilograms or more of a mixture and substance containing a detectable amount of cocaine. Those indicted include:
Jerome Boone, 58, of Long Island, N.Y.; David Mayes, 57, of Blount County, Tenn.; Robert Cannon, 53, of Blount County, Tenn.; Jenni Fair, 40, of Blount County, Tenn.; Oliver Hicks, 46, of Blount County, Tenn.; Ladonald Hodge, 52, of Blount County, Tenn.; Joshua Kruse, 35, of Blount County, Tenn.; Joshua Millward, 41, of Blount County, Tenn.; Loretta Templeton, 49, of Blount County, Tenn.; William Templeton, 52, of Blount Count, Tenn.; and Gordon Yearwood, 56, of Brooklyn, N.Y.
All have been arrested and appeared in U.S. District Court. All except Gordon Yearwood have been held without bond pending trial set for Feb. 10, 2015, before the Honorable Thomas A. Varlan, U.S. District Judge.
If convicted, each faces a prison term of at least 10 years and up to life, a term of supervised release of at least 5 years and up to life, a fine of up to $10,000,000, any applicable forfeiture, and a $100 special assessment.
The indictment and supporting documentation are on file with the U.S. District Court in Knoxville, alleges that the conspiracy occurred between January and December 2014.
These arrest and charges are the result of an investigation by the Fifth Judicial Drug Task Force, which consists of officers and investigators from the Blount County Sheriff’s Office, Maryville Police Department and Alcoa Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Cynthia Davidson will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
East Windsor Woman Sentenced to 51 Months in Prison for Defrauding Mass Mutual, Other EmployersRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that THERESA SUTHERLAND, 34, of East Windsor, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 51 months of imprisonment, followed by three years of supervised release, for engaging in a fraud and identity theft scheme.
According to court documents and statements made in court, SUTHERLAND was employed by Mass Mutual Financial Group as a claims examiner in the company’s Enfield office. Mass Mutual offers full-time employees up to $8,500 in college tuition reimbursement and up to $5,000 reimbursement for the expenses associated with the adoption of a child. SUTHERLAND and other Mass Mutual employees defrauded the company by submitting numerous fraudulent claims for tuition reimbursement and adoption expenses. In association with the fraudulent claims for adoption expenses, SUTHERLAND and her co-conspirators submitted birth certificates and Social Security numbers of actual children who were not their own.
SUTHERLAND and her co-conspirators received approximately $240,000 in fraudulent reimbursements during the conspiracy, and SUTHERLAND specifically received more than $75,000.
The investigation revealed that SUTHERLAND defrauded three other employers in addition to Mass Mutual. Judge Covello ordered her to pay total restitution of $400,000 to Mass Mutual and these former employers.
On November 19, 2013, SUTHERLAND pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft.
Four other former employees of Mass Mutual were charged as a result of this investigation.
This investigation is being conducted by the Connecticut Financial Crimes Task Force, including the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury forAssault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Julius Titus III, age 35, was indicted on December 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 11, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years of custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 26, 2014, at Eagle Butte, Titus unlawfully assaulted two victims. He is alleged to have assaulted the first victim with shod feet, a door, and a frying pan, causing serious bodily injury to that victim. On the same day, Titus assaulted the second victim, an intimate partner, and the assault resulted in substantial bodily injury to that victim as well.
The charges are merely accusations and Titus is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Titus was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Dougherty County School Teacher Pleads Guilty to Child Pornography ChargesRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Brian O. Brannen, aged 41, formerly of Albany, Georgia, entered a guilty plea to one count of possession of child pornography on December 15, 2014, before the Honorable W. Louis Sands, U.S. District Court Judge, in Albany, Georgia.Based on facts related by a person who had stayed briefly at Mr. Brannen’s residence that child pornography had been seen there and on Mr. Brannen’s computer, officers of the Dougherty County Sheriff’s Office obtained and executed a search warrant on that residence and computer. They found numerous images of child pornography indicating involvement with same by Mr. Brannen since at least 2007. The Department of Homeland Security became involved in the investigation and subsequently determined that the computer contained 24 video files depicting child pornography.”
Mr. Brannen will be sentenced in about 60 days. He faces a maximum possible sentence of twenty (20) years imprisonment, a maximum fine of $250,000, or both. He will also be required to register as a sex offender.
“Child pornography is a scourge that makes victims of the most innocent members of our society. I commend the investigators in this case for their diligence in uncovering the participation of Mr. Brannen in this illegal activity,” said U.S. Attorney Michael Moore.The case was investigated by Captain Craig Dodd and Lieutenant Julie Wood, with the Dougherty County Sheriff’s Office, with assistance from the U.S. Department of Homeland Security. Assistant United States Attorney Jim Crane is prosecuting the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Defendant Sentenced in International Multi-Million Dollar Conspiracy to Manufacture and Distribute Designer DrugsRead the Press Release
Largest Synthetic Drug Prosecution in the District of OregonPORTLAND, Ore. – Ryan Ahidjou “Bo” Scott, 34, of Lake Oswego, Oregon, was sentenced by Honorable Ancer L. Haggerty to 96 months in prison following his convictions for conspiracy to distribute controlled substances and conspiracy to commit money laundering. The convictions stemmed from his role in leading an international drug-trafficking organization responsible for distributing over $5 million of synthetic designer drugs. The defendant was charged in federal court in May 2012, and pled guilty on May 27, 2014.
“This long-term investigation took down one of the largest synthetic drug manufacturers on the West Coast,” said U. S. Attorney Amanda Marshall. “These synthetic designer drugs are dangerous and we are fortunate to have partner agencies – HSI, IRS, and the DEA – who are committed to stopping the distribution of these poisons to our kids.”
The investigation began in 2011 when Customs and Border Protection (CBP) agents detected suspicious shipments imported from Peru destined for defendant Ryan Bo Scott’s company KTW Enterprises. Agents with Homeland Security Investigations (HSI), working with the Portland Police Bureau (PPB), executed a search warrant at defendant’s company in April 2011. There, they seized over 500 pounds of synthetic drug products packaged in 1 gram packets labeled as “K2” and “not for human consumption.” During the next several months, forensic experts employed by the Drug Enforcement Administration (DEA) confirmed the presence of over a dozen types of chemical compounds in the seized drug products that were both scheduled drugs and analogues of the same.
Through the remainder of 2011 and into early 2012, HSI and IRS agents, working closely with financial analysts from the Organized Crime and Drug Enforcement Task Force (OCDETF), gathered evidence that Scott was running a worldwide drug trafficking and money laundering conspiracy selling various synthetic designer drugs. Members of the conspiracy mixed chemical compounds together with herb extracts and marketed the resulting “K2” products as “incense.” Additionally, the defendants used the internet to market and distribute “K2” and purchased dozens of domain names, including “k2drugs.com” and “k2incense.org” to obtain a monopoly on the market for K2. The investigation culminated on May 15, 2012, with the execution of search warrants at the defendants’ residences and a warehouse in Vancouver, Washington, where agents seized hundreds of pounds of dried plant materials, packaging equipment, and chemicals. Pictures from the search warrants are attached:
The harmful and sometimes fatal consequences of synthetic drugs have been gaining attention nationally and beyond. In March 2011, the United States Drug Enforcement Administration (DEA) exercised its emergency scheduling powers placing these synthetic cannabinoids into Schedule I of the Controlled Substances Act (CSA) because it was necessary to avoid an imminent hazard to the public safety. Schedule I is the most restrictive category under the Controlled Substances Act, and it is reserved for those substances with a high potential for abuse, no accepted medical use for treatment in the United States, and a lack of accepted safety for use of the drug under medical supervision.
Synthetic cathinones (also known as “bath salts”) act as central nervous system stimulants causing rapid heart rate (which may lead to heart attacks and strokes), chest pains, nosebleeds, sweating, nausea, and vomiting. People who abuse these substances have reported agitation, insomnia, irritability, dizziness, depression, paranoia, delusions, suicidal thoughts, seizures, and panic attacks. Users have also reported effects including impaired perception of reality, reduced motor control, and decreased ability to think clearly. One of the most recent exposes on the dangers of synthetic drugs was aired last week on CNN, entitled “How Synthetic Drugs are Killing Kids.” http://www.cnn.com/2014/12/01/us/synthetic-drugs-investigation. Other national and local news agencies have reported the dangers and epidemic of synthetic drugs. http://time.com/57167/rise-of-fake-pot/#57167/rise-of-fake-pot (noting that the “most complicated drug problem in the world right now is not meth or cocaine or heroin. It is synthetic drugs, also known as legal highs or designer drugs”); http://eugenedailynews.com/2012/10/synthetic-drug-spice-linked-to-harmful-highs
http://www.katu.com/news/medicalalert/Synthetic-drug-spice-linked-to-kidney-failure-172872251.html (linking a half-dozen kidney failures in Oregon and Southwest Washington to local synthetic drug use).
“The loop hole the defendants thought they were exploiting closed in on them, but not before they made millions marketing illegal ‘incense’ to young people and military members,” said Brad Bench, special agent in charge of Homeland Security Investigations in Seattle. “This was a despicable act considering the proof-positive evidence we now have of the harmful effects of the drug analogs associated with their illicit products. Fortunately, the investigative efforts of HSI and the IRS dismantled this major supplier of Spice.”
This case was investigated by the Department of Homeland Security (DHS), Internal Revenue Service (IRS), Drug Enforcement Administration (DEA), Customs and Border Protection (CBP). The case was prosecuted by Assistant United States Attorneys Leah K. Bolstad and Michelle H. Kerin.
Defendant Sentenced for Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and the members of the South Florida Joint Terrorism Task Force (JTTF), announce that Gufran Ahmed Kauser Mohammed, 31, a naturalized United States citizen and resident of Dammam, Saudi Arabia, was sentenced to 15 years in prison by U.S. District Judge Ursula Ungaro, for conspiring to provide material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (“AQI/al-Nusrah Front”), and al-Shabaab.
On July 11, 2014, Mohammed pled guilty to Count 1 of an Indictment charging him with conspiracy to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria, and al-Shabaab in Somalia. The charges allege that Mohammed sent a series of wire transfers to coconspirator Mohamed Hussein Said for the purpose of supporting al-Shabaab, and to an individual whom he believed was a terrorist fundraiser, recruiter, and supplier for the purpose of supporting al-Qa’ida and AQI/al-Nusrah Front. In addition, Mohammed agreed to support al-Qa’ida and AQI/al-Nusrah Front by recruiting individuals to fight in the conflict in Syria. Mohammed earmarked certain of his financial contributions for the purpose of buying weapons and funding attacks on United States citizens or the United Nations.
Mr. Ferrer commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. The case was prosecuted by Trial Attorney Jolie F. Zimmerman from the Counterterrorism Section of the Justice Department’s National Security Division and Assistant U.S. Attorneys Brian K. Frazier and Ricardo A. Del Toro.
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 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendant Sentenced for Conspiring to Provide Material Support to Foreign Terrorist OrganizationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), announce that Gufran Ahmed Kauser Mohammed, 31, a naturalized United States citizen and resident of Dammam, Saudi Arabia, was sentenced to 15 years in prison by U.S. District Judge Ursula Ungaro, for conspiring to provide material support to three separately designated Foreign Terrorist Organizations, al-Qa’ida, al-Qa’ida in Iraq/al-Nusrah Front (“AQI/al-Nusrah Front”), and al-Shabaab.
On July 11, 2014, Mohammed pled guilty to Count 1 of an Indictment charging him with conspiracy to provide money and recruits to al-Qa’ida, AQI/al-Nusrah Front in Syria, and al-Shabaab in Somalia. The charges allege that Mohammed sent a series of wire transfers to coconspirator Mohamed Hussein Said for the purpose of supporting al-Shabaab, and to an individual whom he believed was a terrorist fundraiser, recruiter, and supplier for the purpose of supporting al-Qa’ida and AQI/al-Nusrah Front. In addition, Mohammed agreed to support al-Qa’ida and AQI/al-Nusrah Front by recruiting individuals to fight in the conflict in Syria. Mohammed earmarked certain of his financial contributions for the purpose of buying weapons and funding attacks on United States citizens or the United Nations.
Mr. Ferrer commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force. The case was prosecuted by Assistant U.S. Attorneys Brian K. Frazier and Ricardo A. Del Toro and Trial Attorney Jolie F. Zimmerman from the Counterterrorism Section of the Justice Department’s National Security Division.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dallas-Based Physician and Home Health Agency Nursing Director Sentenced in $3 Million Medicare Fraud ConspiracyRead the Press Release
DALLAS – A physician and a home health agency manager were sentenced today for their roles in a $3 million Medicare fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Joseph Megwa, M.D., 60, of Arlington, Texas, and Ebolose Eghobor, R.N., 49, of Grand Prairie, Texas, were sentenced today by U.S. District Judge Ed Knikeade to 120 months and 48 months respectively, in federal prison. In May 2014, Megwa and Eghobor were each convicted on one count of conspiracy to commit health care fraud. In addition, Mega was convicted on three counts of health care fraud and four counts of making false statements related to a health care benefit program based on his submission of false claims to Medicare for home visits or house calls to patients that he never actually made.
The home health care convictions related to a scheme involving PTM Healthcare Services Inc. (PTM), which was owned and operated by Ferguson Ikhile, R.N. Ikhile, 56, of Irving, Texas, pleaded guilty in 2013 to conspiracy to commit health care fraud and is scheduled to be sentenced on January 14 2015.
From approximately 2006 to 2011, PTM recruited Medicare beneficiaries so that PTM could bill Medicare for unnecessary home health services. Ikhile, Eghobor and others then prepared fraudulent medical records that made it appear that the beneficiaries needed home health services. In exchange for cash payments, Megwa, who owned and operated Raphem Medical Practice P.A., falsely certified that the beneficiaries needed home health services and that the services otherwise qualified for payment under Medicare.
The investigation was led by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, a joint effort of the U.S. Attorney’s Office for the Northern District of Texas and the Criminal Division’s Fraud Section. The case was prosecuted by Deputy Chief Jeffrey A. Goldberg and Trial Attorney Allan J. Medina of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mindy Sauter and Michael Elliott of the Northern District of Texas.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and 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.
Convicted Fraudster Indicted for Failing to Surrender for Service of SentenceRead the Press Release
DALLAS — A Irving, Texas, man, who was sentenced to serve 70 months in federal prison in an investor fraud case, was indicted yesterday for failing to self-surrender to the Bureau of Prisons to serve that sentence, announced U.S. Attorney Sarah R. Saldaña.
Michael David Carroll, 39, pleaded guilty in April 2013 to one count of wire fraud stemming from his role as a registered agent, director and incorporator of The Salad Bowl Franchise Corporation. Carroll ran a scheme to defraud potential investors, and to obtain money and property under false and fraudulent pretenses, by fraudulently inducing investors to purchase a “Salad Bowl” franchise from him.
Carroll was sentenced on March 17, 2014, by U.S. District Judge David C. Godbey to 70 months in federal prison and ordered to pay more than $1.4 million in restitution. He was ordered to report to federal prison before 11:00 a.m. on Monday, May 14 2014, to begin serving that sentence.
According to the indictment, on April 18, 2014, the Court granted a defense request to delay Carroll’s report date and set a new report date of July 15, 2014. Again, on July 14, 2014, the Court granted another defense request to delay Carroll’s report date and set a new report date of no later than 2:00 p.m. on Monday, September 15, 2014. Carroll, however, failed to surrender for service of sentence. On September 17, 2014, Judge Godbey ordered that an arrest warrant be issued for Carroll.
If convicted, the maximum statutory penalty for this offense is 10 years in federal prison and a $250,000 fine. The provisions of 18 U.S.C. § 3146 require that any term of imprisonment imposed on Carroll for failure to surrender for service of sentence must be served consecutively to his 70-month sentence of imprisonment for investor fraud ordered by Judge Godbey in March of 2014.
A federal indictment is an accusation by a grand jury. A defendant is entitled to the presumption of innocence unless proven guilty.
The FBI investigated the case and Assistant U.S. Attorney David L. Jarvis is prosecuting.
Convicted Felon from Camden County, New Jersey, Admits Role in Conspiracy to Traffic Guns from South Carolina to New JerseyRead the Press Release
CAMDEN, N.J. – A Lawnside, New Jersey, man today admitted illegally possessing firearms and selling 22 guns without a license, U.S. Attorney Paul J. Fishman announced.
Anthony Gilmore, a/k/a “Tone,” 25, pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiring to deal firearms without a license and one count of possession of a firearm by a previously convicted felon.
According to documents filed in this case and statements made in court: Between April 8, 2013, and July 8, 2014, Gilmore conspired with four others to sell 22 firearms on several occasions, for profit and without a license. The 22 firearms included handguns, shotguns, and an assault rifle. Gilmore personally sold or participated in the sale of at least seven firearms, including handguns and shotguns, as well as a bullet-proof vest, to a witness cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Gilmore’s conspirators obtained the firearms in South Carolina and brought them to New Jersey on a weekly basis, at times using Amtrak to transport the guns. On two occasions, Gilmore sold a firearm to the cooperating witness along with ammunition. All 22 weapons are now in the custody of law enforcement.
The conspiracy charge to which Gilmore pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. The unlawful possession of a firearm as a convicted felon charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 23, 2015.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George Belsky in Newark, New Jersey, with the investigation leading to today’s guilty plea. He also thanked special agents from the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, as well as officers from the Winslow Township and Clementon police departments, for their work in the case.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office in Camden.
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Defense counsel: Assistant Federal Public Defender Christopher O’Malley Esq., CamdenGilmore, Anthony Information
Colorado Men Sentenced for Flying More Than 70 Pounds of Cocaine to Baton RougeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that Chief U.S. District Judge Brian A. Jackson has sentenced VINCENT SALZANO, age 57, and ARMANDO SALZANO, age 33, both of Denver, Colorado, to lengthy prison terms for their roles in attempting to transport more than seventy (70) pounds of cocaine through Baton Rouge on a private aircraft.
VINCENT SALZANO was sentenced to serve sixty (60) months in federal prison following his conviction earlier this year for possession with the intent to distribute five (5) kilograms or more of cocaine, in violation of Title 21, United States Code, Section 841(a)(1). VINCENT SALZANO was also ordered to serve a 3-year term of supervised release following his release from imprisonment and pay a $5,000 fine. ARMANDO SALZANO was sentenced to serve forty-eight (48) months in federal prison, to be followed by a 2-year term of supervised release. ARMANDO SALZANO was also ordered to pay a $30,000 fine. The defendants were ordered to forfeit any and all property used to commit the offense.
Today’s sentences follow the defendants’ arrests in October of 2013 at the Baton Rouge Metropolitan Airport. On October 7, 2013, the defendants met and boarded a private plane, which VINCENT SALZANO controlled, which had been flown to Atlanta, Georgia at his direction. The following day, the defendants flew from Atlanta to the McAllen, Texas area, where they deplaned, left the airport, and obtained approximately 30 packaged bundles of cocaine. The defendants then re-boarded the plane, carrying the cocaine and intending to travel back to Atlanta. The plane stopped in Baton Rouge for fuel, at which point the SALZANOS were contacted by law enforcement agents and arrested. Both defendants pled guilty earlier this year.
The investigation is being conducted by the United States Attorney’s Office, the U.S. Department of Homeland Security – Homeland Security Investigations, U.S. Customs and Border Protection, and the Louisiana State Police, with assistance from the West Baton Rouge Parish Sheriff’s Department, the Federal Aviation Administration, and other law enforcement agencies. The matter is being prosecuted by Assistant United States Attorneys Alan A. Stevens and James P. Thompson.
Colorado Man Charged with Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Brendan V. Johnson announced that a Denver, Colorado, man has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Brandon Jeraye Trejo, age 22, was indicted on December 9, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 10, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $1,000,000 fine, a mandatory 3 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about November 14, 2014, Trejo knowingly and intentionally distributed, and possessed with intent to distribute, a detectable amount of methamphetamine, a Schedule II controlled substance.
The charge is merely an accusation and Trejo is presumed innocent until and unless proven guilty.The investigation is being conducted by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Trejo remains in custody pending release on bond. A trial date has not been set.
Colombian Boat Captain Sentenced to More Than 18 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Juan Yover Estrada-Mancilla (35, Colombia, South America) to 18 years and 9 months in federal prison for conspiracy to possess with intent to distribute five kilograms of cocaine while on board a vessel subject to the jurisdiction of the United States. Estrada-Mancilla is the last of three defendants to be sentenced in this case. On October 22, 2014, Jorge Mario Cuero-Delgado (47, Colombia), was sentenced to serve 10 years and 1 month in federal prison, and Franklin Albeiro Angulo-Montano (39, Colombia) was sentenced to serve 11 years and 3 months in federal prison.
All three Colombian nationals were arrested on May 18, 2014, when the self-propelled, semi-submersible vessel in which they were traveling was interdicted and searched by the U.S. Coast Guard (USCG). During the search of the vessel, members of the USCG team found and seized 2,838 kilograms of cocaine.
Estrada-Mancilla, the captain of the vessel, and the two crewmembers all previously pleaded guilty to the offense.
This case was investigated by OCDETF's Panama Express Strike Force, comprised of agents and analysts from the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement=s Homeland Security Investigations, the United States Coast Guard Investigative Service, and the Joint Interagency Task Force South. The principal mission of the OCDETF Program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply.
This case was prosecuted by Assistant United States Attorney Maria Chapa Lopez.
Cocaine Trafficker Sentenced to More Than 33 Years in PrisonRead the Press Release
Conspiracy Involved Over 700 Kilograms of Cocaine Worth Over $21 Million
CHARLOTTE, NC B Pedro Oscar Dieguez, a/k/a “The Cuban,” was sentenced today by Chief U.S. District Judge Frank D. Whitney to serve 400 months in prison and five years of supervised release on cocaine trafficking and related charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered the defendant to pay a $20,000 fine and the forfeiture of Dieguez’s Mercedes vehicle, three firearms and $1,890 in cash.
U.S. Attorney Tompkins is joined in making today’s announcement by John S. Comer, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Sheriff Eddie Cathey of the Union County Sheriff’s Office (UCSO) and Chief Rodney D. Monroe of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed court documents, trial evidence presented, and today’s sentencing hearing:
In January 2014 following a four-day trial, Dieguez, 49, of Indian Trail, N.C. was convicted by a federal jury of conspiracy to distribute and to possess with intent to distribute cocaine and money laundering conspiracy. From about 2004 through 2013, Dieguez and his co-conspirators trafficked more than 700 kilograms of cocaine with an estimated street value of more than $21,000,000. Dieguez obtained his drug supplies from Mexican cartels and other sources of supply with connections to cartels and transported it to the Charlotte area using trucks. Dieguez and his conspirators ultimately redistributed the cocaine as crack cocaine. Dieguez engaged in a conspiracy to launder the drug proceeds through bank accounts and by purchasing expensive exotic horses. Dieguez kept the horses on his 16-acre ranch located in Indian Trail, which he also used to offload the drug shipments. While executing a search warrant at Dieguez’s ranch, law enforcement seized multiple firearms, including a .45 caliber High-Point handgun and a .22 Ruger handgun.
Dieguez, a Cuban national, has been in federal custody since April 24, 2013, after it was discovered that he had been planning to flee to Cuba. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Two of Dieguez’s conspirators, Maximiliano Aguilar-Rodriguez and Juan Diego Aguilar-Preciado were previously sentenced to 70 months and 46 months in prison, respectively, and to three years of supervised release.
The case was investigated by the DEA in Charlotte, UCSO, and CMPD. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman.
Cincinnati Man Sentenced to 222 Months for Receiving Child PornographyRead the Press Release
CINCINNATI – Christopher Blain, 38, of Cincinnati, was sentenced in U.S. District Court to 222 months in prison for receiving child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the sentence handed down yesterday by U.S. District Chief Judge Susan J. Dlott.
According to court documents, investigators discovered Blain had received 825 child pornography images to one of his email addresses, which incorporated the username KDDYLVR. Blain told investigators he created the email account in 2007. Analysis of the account confirmed that between May 8, 2013 and June 14, 2013, Blain received numerous images and/or videos depicting child pornography from other individuals. The images or videos depict prepubescent minors engaged in various sexual acts and are considered sadistic.
Blain pleaded guilty on June 2, 2014 to receipt of child pornography. He has been in custody since October 2013.This case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's 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 as well as to identify and rescue victims.
U.S. Attorney Stewart commended the cooperative investigation by Homeland Security and the Secret Service, as well as Assistant United States Attorney Christy Muncy, who represented the United States in this case.
Cherry Creek Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Cherry Creek, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on December 15, 2014, by U.S. District Judge Roberto A. Lange.
Kelly Romero, age 27, was sentenced to 14 months in custody, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Romero was indicted by a federal grand jury on July 17, 2013. He pled guilty on September 22, 2014.
The conviction stems from an incident on May 16, 2013, when the victim returned to his home in Cherry Creek, after a day of shopping for items for his grandmother’s “Memorial Give Away.” At that point, Romero, who had been drinking, got into an argument with the victim, who is Romero’s brother. During the argument, Romero picked up and pointed a sawed-off shotgun at his brother, telling the victim to get out of the house or Romero would shoot him.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Romero was immediately turned over to the custody of the U.S. Marshals Service.
Cherokee, N.C. Man Sentenced TO More Than Nine Years in Prison in Connection with Oxycodone Distribution RingRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger today sentenced Jackie Lee Rattler, 55, of Cherokee, N.C. 108 months in prison on drug trafficking conspiracy charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Rattler was also ordered to serve three years under court supervision upon completion of his prison term.
U.S. Attorney Tompkins is joined in making today’s announcement by John S. Comer, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the North Carolina; Charles Addington, Deputy Associate Director of the Bureau of Indian Affairs, Division of Drug Enforcement; Chief Ben Reed of the Cherokee Indian Police Department; Sheriff Curtis Cochran of the Swain County Sheriff’s Office; Sheriff Mickey Anderson of the Graham County Sheriff’s Office; and Sheriff Jimmy Ashe of the Jackson County Sheriff’s Office.
According to filed court documents and today’s proceedings, Rattler and his co-defendants were involved in the trafficking of narcotics, including Oxycodone, cocaine, marijuana and Alprazolam in Swain and Jackson Counties. At today’s sentencing hearing, Rattler was found to be accountable for trafficking 477.20 grams Oxycodone, 3.05 kilograms of marijuana and 56.2 grams of cocaine. During the investigation, law enforcement also seized 42 firearms, including two Ruger M77 II rifles and a Smith & Wesson 66 Revolver. In September 2013, Rattler pleaded guilty to six counts of possession with intent to distribute a controlled substance and one count of being a controlled substance user in possession of firearms.
Rattler’s co-defendants have already been sentenced: Mark Allen Winstead was sentenced to 38 months; Timothy Leroy Rattler was sentenced to 18 months; Jacob Hunter Rattler was sentenced to 15 months; Taryn Krista Elizabeth Toineeta Rattler was sentenced to 70 months in prison and Evan Thomas Norris, Jr. was sentenced to 19 months in prison.
Jackie Rattler has been in federal custody since June 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Tompkins thanked all the law enforcement agencies involved in these investigations for their continued cooperation and assistance. The prosecution was handled by Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville.
Chamico Employee Sentenced for Conspiracy to Commit Mail FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TENILLE NIELSON, age 34, of Franklinton, was sentenced today for her role in a scheme to defraud the Louisiana Workforce Commission of unemployment benefits.
U.S. District Judge Helen G. Berrigan sentenced NIELSON to 3 years probation and restitution in the amount of $6,422.
According to the court documents, beginning at a time unknown, but no later than on or about September 24, 2009, and continuing through on or about January 11, 2014, NIELSON, along with CHARLES E. MIZELL, JR., TERRY CASTILOW, WILLIAM DARRYL KING, DAVID LOWE, JAMES CREEL, JERRY ATHEY, JACQUELINE MYERS, and ROGER NADEAU, conspired to defraud the Louisiana Workforce Commission (“LWC”) of money and property by means of false and fraudulent representations, pretenses and promises, well knowing the representations, pretenses and promises were false, and mailed and caused to be mailed through the United States Postal Service unemployment (“UI”) benefit claim forms for the purpose of obtaining UI benefits to which they were not entitled. Specifically, at the time NIELSON applied for UI benefits and made weekly representations to LWC that she was unemployed and not getting paid, MIZELL, JR., actually employed her at Chamico, Inc., a Bogalusa construction company that concentrates on public, municipal, and industrial contracts.
U.S. Attorney Polite praised the work of the Department of Labor-OIG and the Federal Bureau of Investigation, with assistance from the Louisiana Workforce Commission in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Cargo Ship Chief Engineer Convicted of Environmental Crimes, Obstruction of Justice and Witness TamperingRead the Press Release
A chief engineer from the M/V Trident Navigator was convicted by a federal jury in New Orleans late yesterday after a week-long trial, of knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS), obstruction of justice and witness tampering, announced the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Louisiana.
Matthaios Fafalios, 64, a resident of Greece, was convicted of knowingly falsifying the vessel’s oil record book, obstruction of justice, and witness tampering related to his service onboard the M/V Trident Navigator and a subsequent U.S. Coast Guard boarding of the vessel in January 2014. In late December 2013, Fafalios ordered his engineering crew to construct a hose known in the industry as a “magic hose” to discharge the oily waste water that was in the vessel’s bilge holding tank. Two crewmembers onboard the vessel reported this illegal discharge to the Coast Guard. When coast guard inspectors boarded the vessel, Fafalios attempted to hide critical documents from the inspectors that indicated the illegal discharge occurred. Additionally, Fafalios ordered engineers under his command to lie to the Coast Guard about the illegal oily waste water discharge.
Consistent with requirements in the APPS regulations, a vessel like the M/V Trident Navigator, must maintain a record known as an oil record book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the oily water separator (OWS).
The operator of the vessel, Marine Managers LTD., had previously pleaded guilty to knowingly falsifying the oil record book and obstruction of justice and paid a total criminal penalty of $900,000.00.
The case was investigated by the U.S. Coast Guard Investigative Service. The case was prosecuted by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice and by Emily Greenfield of the U.S. Attorney’s Office for the Eastern District of Louisiana.
Cargo Ship Chief Engineer Convicted of Environmental Crimes, Obstruction of Justice and Witness TamperingRead the Press Release
A chief engineer from the M/V Trident Navigator was convicted by a federal jury in New Orleans late yesterday after a week-long trial, of knowingly falsifying the vessel’s oil record book in violation of the Act to Prevent Pollution from Ships (APPS), obstruction of justice and witness tampering, announced the Department of Justice Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Louisiana.
Matthaios Fafalios, 64, a resident of Greece, was convicted of knowingly falsifying the vessel’s oil record book, obstruction of justice, and witness tampering related to his service onboard the M/V Trident Navigator and a subsequent U.S. Coast Guard boarding of the vessel in January 2014. In late December 2013, Fafalios ordered his engineering crew to construct a hose known in the industry as a “magic hose” to discharge the oily waste water that was in the vessel’s bilge holding tank. Two crewmembers onboard the vessel reported this illegal discharge to the Coast Guard. When coast guard inspectors boarded the vessel, Fafalios attempted to hide critical documents from the inspectors that indicated the illegal discharge occurred. Additionally, Fafalios ordered engineers under his command to lie to the Coast Guard about the illegal oily waste water discharge.
Consistent with requirements in the APPS regulations, a vessel like the M/V Trident Navigator, must maintain a record known as an oil record book in which transfer and disposal of all oil-contaminated waste and the discharge overboard and disposal otherwise of such waste, must be fully and accurately recorded by the person in charge of the operations. Oil-contaminated bilge waste can be discharged overboard if it is processed through on-board pollution prevention equipment known as the oily water separator (OWS).
The operator of the vessel, Marine Managers ltd., had previously pleaded guilty to knowingly falsifying the oil record book and obstruction of justice and paid a total criminal penalty of $900,000.00.
The case was investigated by the U.S. Coast Guard Investigative Service. The case was prosecuted by Kenneth E. Nelson of the Environmental Crimes Section of the Department of Justice and by Emily Greenfield of the U.S. Attorney’s Office for the Eastern District of Louisiana.
California Residents Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On December 16, 2014, Mario Ruben Borboa, a 38 year-old resident of Downey, California, was sentenced by United States District Court Judge John Jarvey to 160 months in prison for conspiracy to distribute methamphetamine, and to serve five years supervised release following imprisonment, announced United States Attorney Nicholas Klinefeldt. Borboa entered a guilty plea to conspiracy to distribute methamphetamine on August 14, 2014.
Borboa’s co-defendant, Melissa Nicole Gallardo, a 30 year-old resident of Lancaster, California, was sentenced by Judge John Jarvey to 65 months in prison for conspiracy to distribute methamphetamine, and to serve three years of supervised release following imprisonment. Gallardo entered a guilty plea to the charge on July 11, 2014.
On February 27, 2014, the Iowa State Patrol in Cass County, Iowa, conducted a traffic stop resulting in the seizure of approximately 16 pounds of methamphetamine that was located in the trunk of the car Borboa and Gallardo had driven from California. The investigation revealed that the methamphetamine was being transported from the Los Angeles, California, area to Waterloo, Iowa, where it was to be distributed. Money received from the sale of the methamphetamine was to be returned to California at a later date.
The investigation was conducted by the Iowa State Patrol and the Iowa Division of Narcotics Enforcement, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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California Man Sentenced to Ten Years in Federal Prison for Transporting PCP on a Greyhound BusRead the Press Release
ALBUQUERQUE – Randall Wheeler, Jr., 30, of Los Angeles, Calif., was sentenced this afternoon to ten years in federal prison followed by four years of supervised release for his drug trafficking conviction.
Wheeler was arrested in Albuquerque, N.M., on Jan. 23, 2014, on a criminal complaint alleging a drug trafficking charge. According to the criminal complaint, Wheeler possessed phencyclidine (PCP) with intent to distribute on Jan. 22, 2014, in Bernalillo County, N.M. Wheeler subsequently pled guilty on Sept. 17, 2014, to a felony information charging him with possession with intent to distribute.According to the plea agreement, Wheeler admitted that on Jan. 22, 2014, he was on a Greyhound bus that made a routine stop in Albuquerque, N.M. During the stop, a DEA agent approached him, identified himself as law enforcement, and asked permission to speak with him. Wheeler agreed and permitted the agent to search his bags. The search revealed two bottles concealed within Wheeler’s suitcases which were found to contain PCP.
This case was investigated by the Interdiction Unit of the DEA’s Albuquerque office which focuses on disrupting the flow of narcotics, weapons, and the proceeds of illegal activities as they are smuggled into or through New Mexico in passenger buses, passenger trains, commercial vehicles and automobiles. The case was prosecuted by Assistants U.S. Attorney Linda Mott and Rumaldo A. Armijo.
CEO and Managing Director of U.S. Broker-Dealer Plead Guilty to Massive International Bribery SchemeRead the Press Release
Senior Venezuelan Banking Official Received at Least $5 Million in Bribes in Exchange for Directing Business to U.S. Defendants
The former chief executive officer and former managing director of a U.S. broker-dealer (the Broker-Dealer), pleaded guilty to bribery charges arising from their scheme to pay bribes to Maria De Los Angeles Gonzalez De Hernandez, who was a senior official in Venezuela’s state economic development bank, Banco de Desarrollo Económico y Social de Venezuela (Bandes), in return for trading business that generated more than $60 million in commissions.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement.
“Benito Chinea and Joseph DeMeneses are the fifth and sixth defendants to plead guilty in connection with this far-reaching bribery scheme, which ranged from Wall Street to the streets of Caracas,” said Assistant Attorney General Caldwell. “The guilty pleas and the forfeiture of assets once again demonstrate that the Department is committed to holding corporate executives who engage in foreign bribery individually accountable and to deny them the proceeds of their corruption.”
According to the allegations in the indictment and other documents previously filed in Manhattan federal court:
Benito Chinea, 48, of Manalapan, New Jersey, and Joseph De Meneses, 45, of Fairfield, Connecticut, working with others, arranged the bribe payments to Gonzalez in exchange for her directing Bandes’s financial trading business to the Broker-Dealer. Previously, Gonzalez, along with two employees of the Broker-Dealer, Tomas Alberto Clarke Bethancourt (“Clarke”) and Jose Alejandro Hurtado (“Hurtado”), pleaded guilty for their involvement in this bribery scheme. A managing director of the Broker-Dealer, Ernesto Lujan (“Lujan”), also pleaded guilty for his role in the scheme.
Background on the Broker-Dealer and Bandes
At all times relevant to the charges, Chinea was the chief executive officer and De Meneses was a managing director in the Broker-Dealer, which was headquartered in New York, New York, with offices in Miami, Florida. In 2008, the Broker-Dealer established a group called the Global Markets Group, which included De Meneses, Lujan, and Clarke, and which offered fixed income trading services to institutional clients. One of the Broker-Dealer’s clients was Bandes, which operated under the direction of the Venezuelan Ministry of Finance. The Venezuelan government had a majority ownership interest in Bandes and provided it with substantial funding. Gonzalez was an official at Bandes and oversaw the development bank’s overseas trading activity. At her direction, Bandes conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of Bandes involved fixed income investments for which the Broker-Dealer charged Bandes a mark-up on purchases and a mark-down on sales.
The Bribery Scheme
As alleged in court documents, from late 2008 through 2012, Chinea and De Meneses, together with three Miami-based Broker-Dealer employees, Lujan, Clarke and Hurtado, participated in a bribery scheme in which Gonzalez directed trading business she controlled at Bandes to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer split the revenue the Broker-Dealer generated from this trading business with Gonzalez. During this time period, the Broker-Dealer generated over $60 million in commissions from trades with Bandes.
In order to conceal their conduct, Chinea, De Meneses and their co-conspirators routed the payments to Gonzalez, frequently in six-figure amounts, through third-parties posing as “foreign finders” and into offshore bank accounts. In several instances, Chinea personally signed checks worth millions of dollars that were made payable to one of these purported “foreign finders” and later deposited in a Swiss bank account.
As further alleged in court documents, as a result of the bribery scheme, Bandes quickly became the Broker-Dealer’s most profitable customer. As the relationship continued, however, Gonzalez became increasingly unhappy about the untimeliness of the payments due her from the Broker-Dealer, and she threatened to suspend Bandes’s business. In response, De Meneses and Clarke agreed to pay Gonzalez approximately $1.5 million from their personal funds. Chinea and De Meneses agreed to use Broker-Dealer funds to reimburse De Meneses and Clarke for these bribe payments. To conceal their true nature, Chinea and De Meneses agreed to hide these reimbursements in the Broker-Dealer’s books as sham loans from the Broker-Dealer to corporate entities associated with De Meneses and Clarke.
Chinea and De Meneses each pleaded guilty before U.S. District Judge Denise L. Cote of the Southern District of New York to one count of conspiracy to violate the Foreign Corrupt Practices Act and the Travel Act. Chinea and De Meneses have also agreed to pay $3,636,432 and $2,670,612 in forfeiture, respectively, which amounts represent their earnings from the bribery scheme. Sentencing hearings are scheduled for March 27, 2015.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, visit www.stopfraud.gov.
This case is being investigated by the FBI, and prosecuted Senior Deputy Chief James Koukios of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Harry A. Chernoff and Jason H. Cowley of the Southern District of New York. Assistant U.S. Attorney Carolina Fornos of the Southern District of New York is responsible for the forfeiture aspects of the case. The U.S. Securities and Exchange Commission also assisted with this investigation.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Burtonsville Man Pleads Guilty to the Armed Robbery of a Convenience StoreRead the Press Release
Brandished a Gun During the Robbery
Greenbelt, Maryland – Donnell Edward Harris, age 21, of Burtonsville, Maryland, pleaded guilty today to robbing a convenience store in Waldorf, Maryland, and to brandishing a gun during the robbery.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; and Charles County Sheriff Troy Berry.
According to Harris’ plea agreement, on September 11, 2013, Harris, Charles Johnson and Madani Tejan robbed a convenience store on St. Ignatius Drive in Waldorf. Harris brandished a firearm during the robbery and the conspirators forced the store employee at gunpoint to open the store’s cash register. The robbers stole $90 in cash and several packs of cigarettes.
Harris also admitted that after he was arrested for the robbery and while he was incarcerated, he threatened to hurt co-conspirator Charles Johnson if Johnson did not lie to law enforcement by stating that he (Johnson) had brandished the firearm during the robbery.
Johnson, age 20, of Beltsville, Maryland, and Madani Ilara Tejan, age 32, of Upper Marlboro, Maryland, previously pleaded guilty to the robbery.
Harris, Johnson and Tejan each face a maximum sentence of 20 years in prison for the robbery. Harris also faces a mandatory seven years, consecutive to any other sentence, and up to life in prison, for brandishing a gun in relation to a crime of violence. U.S. District Judge George Jerrod Hazel has scheduled sentencing for Harris on March 20, 2015, at 9:00 a.m. Johnson and Tejan are both scheduled to be sentenced on January 12, 2015, at 9:30 a.m. and 2:00 p.m., respectively.
United States Attorney Rod J. Rosenstein commended the ATF, Montgomery County Police Department and Charles County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Leah J. Bressack and Daniel Gardner, who are prosecuting the case.
Burlington County, New Jersey, Man Admits Collecting Dead Mother's Monthly Benefit ChecksRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted converting to his own use Retirement Savings benefits and Veterans Affairs Dependency and Indemnity Compensation payments that were wrongfully paid to his deceased mother, U.S. Attorney Paul J. Fishman announced.
Irvin Cooper, 65, of Delran, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging him with one count of theft of government funds.
According to documents filed in this case and statements made in court: Cooper admitted that when his mother died in December 2006 he intentionally did not notify the Social Security Administration (SSA) and the Department of Veteran’s Affairs (VA) as he was obligated to do. This allowed him to continue to receive his mother’s SSA survivor benefit checks and the VA’s Dependency and Indemnity Compensation checks. The SSA and VA discovered the death in April of 2014.
After his mother had died, the SSA and the VA continued to deposit the checks electronically into a PNC Bank account in his mother’s name. Cooper acknowledged he accessed that account at various times and used the money to pay for personal expenses. He admitted that from December 2009 to April 2014, he collected $98,454 to which he was not entitled.
The charge to Cooper pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for March 26, 2015.
U.S. Attorney Fishman credited special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan; and the Department of Veterans Affairs, Office of Inspector General, under the direction of the direction of Special Agent in Charge Jeffrey G. Hughes, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
14-448Defense counsel: James K. Grace Esq., Mount Holly, N.J.
Cooper, Irvin Information