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11 December 2014
- Three Huntsville Men Charged with Distributing PCP
The Regents of the University of California to Pay Half a Million Dollars to Resolve Allegations of False Statements in Obtaining UC Davis Grant FundingRead the Press Release
SACRAMENTO, Calif. — The Regents of the University of California agreed to pay the United States $499,700 to resolve civil allegations under the False Claims Act that the University of California at Davis submitted false and misleading statements in connection with obtaining grants from the Department of Energy (DOE) and the National Science Foundation (NSF), United States Attorney Benjamin B. Wagner announced today.
This settlement resolves claims that U.C. Davis: (1) failed to disclose the duplicative and overlapping nature of the university’s research associated with a DOE grant, an NSF grant, and a previous federal grant; (2) failed to accurately describe the research that had been funded by the NSF grant and the previous federal grant; (3) failed to disclose that the NSF grant and the previous federal grant were funding or had funded certain specific research tasks being funded with DOE grant monies; and (4) in progress reports and renewal applications submitted to the DOE, listed accomplishments achieved under the NSF grant and the previous federal grant, along with reporting accomplishments achieved under the DOE grant. The United States contends that these false and misleading statements caused the DOE and NSF to approve duplicative grant funding that these agencies would not have otherwise been awarded.
As part of the settlement, U.C. Davis has also agreed to take steps to prevent these events from reoccurring by supplementing its current research training program for undergraduate, graduate, and post-doctorate students with an hour-long module covering time and effort reporting, reasonableness of costs and other aspects of federal grants for a three-year period beginning in January.
“This settlement sends a clear message that recipients of federally funded grants must strictly adhere to the regulations applicable to those grants and fully and fairly disclose the information called for under these grants,” stated Benjamin B. Wagner, United States Attorney for the Eastern District of California. “Recipients who fail to do so risk significant financial consequences.”
"The Department of Energy aims to fund innovative and transformative scientific research, but not research simultaneously funded by other Federal agencies,” said Gregory H. Friedman, Inspector General, U.S. Department of Energy. “This civil settlement should help deter such misconduct. Our Special Agents will tirelessly investigate any allegations of abuse that affect the integrity of the grant underwriting process."
“When more than one federal agency funds the same research, the integrity of the grant making process is undermined and scarce research dollars are diverted from other potentially valuable innovation,” said Allison Lerner, Inspector General, National Science Foundation. “This settlement agreement sends a strong signal that failure to disclose duplicative funding will not be tolerated.”
This case was the result of an investigation by the DOE Office of the Inspector General, and the NSF Office of the Inspector General, along with the United States Attorney’s Office for the Eastern District of California. Assistant United States Attorney Catherine Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Tampa Man Sentenced for Credit Card FraudRead the Press Release
Tampa, Florida – United States District Judge Susan C. Bucklew has sentenced Noel Perez Partagas (22, Tampa) to three years and three months in federal prison for access device fraud and identity theft. The Court also ordered him to pay more than $46,000 in restitution, and entered a forfeiture money judgment of nearly $24,000, representing the proceeds of the charged criminal conduct.
According to court documents, Partagas used stolen credit and debit account numbers that had been transformed into counterfeit or cloned credit cards. He purchased large quantities of fuel and tires, among other things, that could later be sold for cash. The true owners of these accounts remained in possession of the cards and did not know that their information had been stolen.
Partagas was arrested in July 2013, after he used a fraudulent credit card to purchase $100 of diesel fuel at a gas station in Polk County. At the time of his arrest, he was driving a pickup truck with a large custom “bladder tank” in the bed, used to hold large quantities of fuel. Partagas had in his possession 69 credit cards and 20 gift cards, most of which had been re-encoded. Further investigation revealed that he had used the fraudulent cards to purchase nearly $42,000 worth of tires from two tire retailers in the Lakeland area in May 2013.
The credit card companies suffered losses of more than $46,000 in this case, with potential losses totaling nearly $350,000.
This case was investigated by the United States Secret Service, the Polk County Sheriff’s Office, the Tampa Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Supplier of “Molly” That Resulted in A Death at Electric Zoo Concert Pleads Guilty in Manhattan Federal Court to Narcotics Conspiracy ChargeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that PATRICK MORGAN pled guilty today to conspiring to distribute narcotics. MORGAN, who was arrested in July 2014, pled guilty before United States District Judge Edgardo Ramos.
Manhattan U.S. Attorney Preet Bharara said: “With today’s guilty plea, Patrick Morgan now stands convicted of conspiring to distribute the drug Molly, which led to the tragic death of Jeffery Russ. This Office remains committed to aggressively pursuing and prosecuting those who peddle this extremely dangerous drug.”
According to the Indictment, the underlying criminal Complaint, and statements made during court proceedings:
In early August 2013, PATRICK MORGAN sold pills commonly called “Molly,” which contained 3,4-methylenedioxymethamphetamine (“MDMA” or “ecstasy”) and 3,4-methylenedioxy-N-methylcathinone (“methylone”), to three individuals (the “Three Individuals”), including Jeffrey Russ, for their use at an electronic dance music concert in Buffalo, New York.
In mid-August 2013, the Three Individuals pooled their money in order to buy additional Molly pills from MORGAN. The Three Individuals intended to consume and distribute these Molly pills at the Electric Zoo music festival. Electric Zoo was a three-day, outdoor electronic dance music festival on Randall’s Island, New York, scheduled to be held from August 30, 2013, through September 1, 2013. Attendance at Electric Zoo was estimated to be over 130,000 people.
In mid-August 2013, MORGAN sold one of the Three Individuals approximately 80 Molly pills that MORGAN understood the Three Individuals intended to consume and distribute at Electric Zoo.
On August 30, 2013, the Three Individuals, including Jeffrey Russ, attended Electric Zoo and consumed some of the Molly pills that were purchased from MORGAN. Toward the end of the concert on August 30, 2013, Russ collapsed and had a seizure. Russ was treated by emergency medical technicians on Randall’s Island and ultimately taken to Harlem Hospital. When Russ arrived at Harlem Hospital, he was unresponsive. On August 31, 2013, at approximately 3:21 a.m., Russ died at Harlem Hospital from acute intoxication by the combined effect of MDMA and methylone with hyperthermia.
MORGAN, 24, of Buffalo, New York, pled guilty to conspiring to distribute narcotics, which carries a maximum term of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. MORGAN is scheduled to be sentenced on March 13, 2015, at 10:30 a.m., by Judge Ramos.
Mr. Bharara praised the investigative work of the Drug Enforcement Administration.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorney Joshua A. Naftalis is in charge of the prosecution.
Stockton Man Pleads Guilty to Federal Drug and Firearm ChargesRead the Press Release
SACRAMENTO, Calif. —Cedric Sewell, 51, of Stockton, pleaded guilty today to possession with intent to distribute heroin, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking offense, and being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to court documents, on March 5, 2014, law enforcement officers conducted a probation search of Cedric Sewell’s residence in Stockton. Agents found a .38‑caliber revolver that was fully loaded with live rounds. The kitchen had been converted to a heroin manufacturing operation, including strainers, digital scales, cutting agents, and hundreds of baggies. Agents also found five kilograms of heroin, 500 grams of cocaine, a money counter, and other items used in drug manufacturing and distribution. Several other firearms (including an AR-15 assault rifle), a cache of ammunition, and approximately $67,000 was also found.
This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Alameda County Narcotics Taskforce, the San Bernardino Probation Department, and the San Joaquin District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.
Sewell is scheduled to be sentenced by United States District Judge Troy L. Nunley on April 30, 2015. Sewell faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Steven Mandell Sentenced to Life in Prison for Barbaric 2012 Plot to Kidnap, Extort and Kill Victim in North Side Torture ChamberRead the Press Release
CHICAGO — A northwest suburban man was sentenced today to life in prison for plotting in 2012 to kidnap, torture, extort and murder an innocent victim and then take control of the victim’s real estate holdings. STEVEN MANDELL, 64, formerly known as “Steven Manning,” of Buffalo Grove, was tried in February of this year and convicted of conspiracy to commit kidnapping, extortion conspiracy, attempted extortion, possessing a firearm during a violent crime, being a felon-in-possession of a firearm, and obstruction of justice.
“This was an extremely serious and disturbing offense,” U.S. District Judge Amy J. St. Eve said in imposing the life term following a hearing in Federal Court. “Your actions in this case, Mr. Mandell, were evil . . . and showed a complete disregard for human life.”
The judge also imposed a mandatory consecutive five-year sentence for use of a firearm and a $5,000 fine. Mandell has been in custody since he was arrested in October 2012 and there is no parole in the federal prison system.
“Mr. Mandell was the mastermind of a truly barbaric crime,” Assistant U.S. Attorney Amerjeet Bhachu said in court today. Mandell “was the principal author of an exceptionally sadistic and depraved plan to kidnap, torture, extort and murder,” Mr. Bhachu and Assistant U.S. Attorney Diane MacArthur argued in a sentencing memo.
Mandell, a Chicago police officer for approximately 10 years until 1983, served more than a decade on Illinois’ death-row for a murder conviction that was later overturned on legal grounds involving the admissibility of evidence at his trial, not because of innocence.
A co-defendant in the 2012 murder plot, Gary Engel, who was 61 at the time, of Homer Glen and a former police officer in Willow Springs, committed suicide shortly after he was arrested with Mandell.
The evidence at trial showed that Mandell rented a location in the 5300 block of West Devon Avenue, known to him as “Club Med,” not knowing at the time that the FBI had installed a hidden camera and recording equipment after a cooperating witness reported Mandell’s plan. Mandell and Engel outfitted the rental location to restrain, torture and kill the victim. They developed a plan to lure him from his residence; stocked “Club Med” with all the tools they needed to carry out the crimes; and obtained all the trappings they needed to pose as police officers in connection with the victim’s abduction.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
St. Peters Man Pleads Guilty to Bank FraudRead the Press Release
St. Louis, MO – MARK AVALOS pled guilty to bank fraud charges relating to his work as the Controller for The Mortgage Store, Inc. (TMS) in 2008.
According to court documents, TMS was a major mortgage brokering business with offices in four states and hundreds of employees. The main offices were in Westport Plaza and Wentzville. The businesses were operating at a financial deficit in 2008. There were not sufficient funds available to fund the disbursements from TMS and, in addition, to meet all of the expenses incurred by TMS. In order to meet certain expenses and, at the same time, conceal the absence of adequate funds, Avalos and others at TMS caused insufficient funds checks drawn on the checking accounts of both TMS and Title America to be deposited between those accounts in such a way that the “float” concealed the true balances of each account. The accounts were at Enterprise Bank in Clayton and at the First Bank of the Lake in Osage Beach, Missouri. The TMS account had a negative balance of approximately $850,000 in June, 2008, when the banks stopped accepting the floated checks. TMS went out of business shortly thereafter.Avalos, St. Peters, Missouri, pled guilty to one felony count of bank fraud before United States District Judge Henry E. Autrey. Sentencing has been set for March 16, 2015.
He now faces a maximum penalty of 30 years in prison and/or fines up to $1 million. (Although court documents show that the parties are requesting a lesser sentence due, in part, to Avalos’ cooperation in the investigation.) In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
Jason Rauschelbach and John York, the owners of TMS, pled guilty earlier this year to charges stemming from the TMS business. Rauschelbach is presently serving a 24-month prison sentence following that guilty plea and York is scheduled to be sentenced on February 2, 2015.
This case was investigated by the FBI, IRS Criminal Investigation and the Inspector General Offices of HUD and the Department of Labor, as well as the Postal Inspection Service. Assistant United States Attorney James E. Crowe, Jr., is handling the case for the U.S. Attorney's Office.
Six People Indicted for Conspiracy that Brought Heroin from Georgia to YoungstownRead the Press Release
A 51-count indictment charging six individuals with drug trafficking crimes was unsealed this week, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Joseph P. Reagan, Special Agent in Charge of the Drug Enforcement Administration's Detroit office..
Indicted are: Vincent D. Moorer, 31, of Lithonia, Ga.; Melvin Johnson, 30, of Youngstown; Keyonia Moorer, of Akron; John Angelo Smith, 34, of Youngstown; Charity Cousin, of Warren, and Jabbar Spires, 37, of Youngstown.
They are accused of knowingly conspiring to possess with the intent to distribute and to distribute heroin between 2013 and November 2014.
Vincent Moorer supplied heroin to Johnson for distribution in the Youngstown area. Johnson then supplied heroin to Spires and Smith distribution in Youngstown, according to the indictment
Cousin helped Vincent Moorer transport heroin from Georgia to Ohio, according to the indictment.
Vincent Moorer and Johnson also possessed firearms to protect themselves and their drug proceeds. On September 29, 2014, Vincent Mooerer possessed a firearm in furtherance of a drug trafficking crime, according to the indictment.
The indictment further alleges that on or about November 4, 2014, Moorer, possessed a Glock, model 27, .40 caliber pistol, and 15 rounds of ammunition, after having been previously convicted of felonious assault, in the Mahoning County, Ohio, Court of Common Pleas.
The indictment further alleges that on or about November 4, 2014, Johnson possessed a Smith & Wesson, model SW40VE, .40 caliber pistol; a Glock, model 27, .40 caliber pistol; and 29 rounds of ammunition, after having been previously convicted of being a felon in possession of a firearm, in the U.S. District Court, Northern District of Ohio, and felonious assault, in the Mahoning County, Ohio, Court of Common Pleas.
Moorer, Cousin, Johnson and Keyonia Moorer also conspired and intentionally conducted a series of financial transactions, which transactions involved money from drug proceeds, knowing that the transactions were designed to conceal the nature, location, source, ownership or control of the drug trafficking proceeds, according to the indictment.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Several Members of Million Dollar Tax Fraud Ring Sentenced to Federal Prison, U.S. Attorney AnnouncesRead the Press Release
Memphis, Tenn. – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, announced today that members of a large tax fraud ring were recently sentenced in federal court. Melissa Harris, 35, of Memphis, was sentenced to 102 months in federal prison. Erin Crutcher, 28, of Memphis, was sentenced to 48 months. Breunca Sutton, 29, of Memphis, was sentenced to 45 months. Angela Jacocks, 40; Vivian Sholar, 35; and Jennifer Freeman, 38; all of Memphis, have pled guilty and await sentencing. All had been charged in a 41-count federal indictment for stealing government funds through the filing of false income tax returns and identity theft.
According to the facts presented in the indictment and revealed during sentencing, between August 6, 2010, and July 27, 2011, Harris, Crutcher, and other individuals unlawfully obtained personal identifying information of victims, including high school students, and used this information to electronically file false federal income tax returns claiming refund amounts. Harris paid a juvenile to steal rosters containing students’ personal information from Memphis high schools. Using this information, Harris and Crutcher filed over 800 false returns and directed over $1.3 million of the generated refunds into the bank accounts of Jacocks, Sutton, Freeman, and Sholar. All of the conspirators received part of the refunds for their personal benefit and use.
All were ordered to pay restitution to the IRS ranging from $332,000 to $1.1 million.
“Because of their brazen criminal scheme, these individuals now face lengthy prison sentences and orders to pay back up to $1.1 million,” stated U.S. Attorney Stanton. “We will continue to work with the IRS to pursue, prosecute, and bring to justice those who steal from honest American taxpayers.”
The investigation was conducted by the United States Secret Service, IRS-Criminal Investigative Division, and Memphis Police Department. Assistant United States Attorney Stephen Hall represented the government.
Russian Citizen Sentenced to Federal Prison for Illegally Exporting Firearm Parts to RussiaRead the Press Release
Savannah, GA: Viacheslav Zhukov, 33, a Russian citizen and lawful permanent resident of the United States, was sentenced last week by United States District Court Judge William T. Moore, Jr. to 51 months in federal prison for his role in illegally exporting firearm accessories from Savannah, Georgia to co-conspirators in Russia.
According to evidence presented during the guilty plea and sentencing hearings, Zhukov mailed multiple packages containing firearm magnifier scopes to Russia without obtaining an export license from the United States Department of Commerce. Various firearm magnifier scopes are controlled under the Export Administration Regulations for crime control purposes and require a license from the United States Department of Commerce to export to Russia. In an attempt to conceal his crimes, Zhukov misrepresented the contents of packages he mailed to Russia on United States Postal Service Customs Declaration forms.
United States Attorney Edward J. Tarver said, “Our export laws are critical in protecting the national security of the United States. I am proud that our law enforcement community quickly investigated Zhukov and successfully seized many of these packages before they ended up in the wrong hands. We will continue to work with our law enforcement partners to enforce national security laws for the safety of all Americans.”
“We are committed to working with our law enforcement partners to dismantle and disrupt any illicit scheme involving the illegal exportation of weapons and related material, including in this case sensitive firearms accessories intended for Russia,” said Special Agent in Charge Brock D. Nicholson of HSI Atlanta, who oversees the agency’s criminal investigations in Georgia and the Carolinas. “This case is a perfect example of the great work being done by our Border Enforcement Security Task Force in Savannah.”
“U. S. Customs & Border Protection, through a harmonized multi-agency effort with Homeland Security Investigations and as part of the Savannah Border Enforcement Task Force, has been successful in preventing the illegal export of weapon accessories to Russia. Today’s sentence is the best evidence of an already successful partnership in our shared areas of interest,” said Lisa Beth Brown, U. S. Customs & Border Protection Area Port Director in Savannah, Georgia.
Savannah-Chatham Metropolitan Police Department Assistant Chief Julie Tolbert, who was acting Chief at the time of arrest, pointed to the arrest by a Metro detective assigned to the Department of Homeland Security and the assistance of Metro SWAT officers as positive signs that the department is working with all agencies to protect the public. “Nothing good could come from a foreign visitor purchasing parts to weapons in Savannah and sending them to other parts of the world,” she said. “Through our association with Homeland Security, we were able to curtail a dangerous situation. I applaud our officers and the federal agents who facilitated this investigation and arrest.”
The investigation of this case was led by HSI, with assistance from U. S. Customs & Border Protection, U. S. Postal Inspection Service, and Savannah-Chatham Metropolitan Police Department. Assistant United States Attorneys Tania Groover and Charlie Bourne prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.Romanian Man Sentenced to Prison for Role in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
A Romanian man was sentenced today to serve 63 months in prison for his role in receiving and sending overseas approximately $690,000 in proceeds from an international fraud scheme involving online marketplace websites, as well as for the use of a fraudulent passport.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David Rivera of the Middle District of Tennessee and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida made the announcement. U.S. District Judge Darrin P. Gayles of the Southern District of Florida imposed the sentence.
Razvan Caprarescu, 39, originally of Bucharest, Romania, was indicted in the Middle District of Tennessee in March 2014 for conspiracy to commit bank and wire fraud in connection with his participation in the online marketplace scheme. In June 2014, the case was transferred to the Southern District of Florida, where Caprarescu had already been indicted in March 2013 for use and attempted use of a false, forged, and counterfeit Belgian passport. Caprarescu pleaded guilty to both charges in August 2014. In addition to his prison term, Caprarescu was ordered to pay $658,441 in restitution.
In connection with his guilty plea, Caprarescu admitted that his co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, the co-conspirators responded with emails directing the victims to wire payments to specified bank accounts. These bank accounts were opened by Caprarescu and another co-conspirator using false identities and fraudulent documents, including counterfeit passports. Eighteen victims sent approximately $367,036 to accounts opened by Caprarescu between October 2011 and June 2012. Another 17 victims sent approximately $321,389 to accounts opened by Caprarescu’s co-conspirator. Caprarescu and his co-conspirator subsequently sent the bulk of the money to co-conspirators located overseas. Caprarescu also admitted that he used a false Belgian passport bearing an alias to rent a mailbox at a U.S. Pak-n-Ship store located in Broward County, Florida.
The cases were investigated by Immigration and Customs Enforcement’s Homeland Security Investigations, the FBI, and the Tennessee Bureau of Investigation. The cases were prosecuted by Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section, Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Assistant U.S. Attorney Alicia Shick of the Southern District of Florida.
Romanian Man Sentenced to Prison for Role in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
A Romanian man was sentenced today to serve 63 months in prison for his role in receiving and sending overseas approximately $690,000 in proceeds from an international fraud scheme involving online marketplace websites, as well as for the use of a fraudulent passport.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee made the announcement. U.S. District Judge Darrin P. Gayles of the Southern District of Florida imposed the sentence.
Razvan Caprarescu, 39, originally of Bucharest, Romania, was indicted in the Middle District of Tennessee in March 2014 for conspiracy to commit bank and wire fraud in connection with his participation in the online marketplace scheme. In June 2014, the case was transferred to the Southern District of Florida, where Caprarescu had already been indicted in March 2013 for use and attempted use of a false, forged, and counterfeit Belgian passport. Caprarescu pleaded guilty to both charges in August 2014. In addition to his prison term, Caprarescu was ordered to pay $658,441 in restitution.
In connection with his guilty plea, Caprarescu admitted that his co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, the co-conspirators responded with emails directing the victims to wire payments to specified bank accounts. These bank accounts were opened by Caprarescu and another co-conspirator using false identities and fraudulent documents, including counterfeit passports. Eighteen victims sent approximately $367,036 to accounts opened by Caprarescu between October 2011 and June 2012. Another 17 victims sent approximately $321,389 to accounts opened by Caprarescu’s co-conspirator. Caprarescu and his co-conspirator subsequently sent the bulk of the money to co-conspirators located overseas. Caprarescu also admitted that he used a false Belgian passport bearing an alias to rent a mailbox at a U.S. Pak-n-Ship store located in Broward County, Florida.
The cases were investigated by Immigration and Customs Enforcement’s Homeland Security Investigations, the FBI, and the Tennessee Bureau of Investigation. The cases were prosecuted by Assistant U.S. Attorney Alicia Shick of the Southern District of Florida, Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee.
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.
Rockwood Man Pleads Guilty to Tax Evasion and Illegally Selling Lobster ChargesRead the Press Release
Contacts: Julia M. Lipez, Richard W. Murphy
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Robert Thompson, 53, of Rockwood, Maine pleaded guilty today in U.S. District Court to federal income tax evasion and illegally selling lobster charges.Court records reveal that between 2008 and 2011, Thompson was the dock manager for the Spruce Head Fisherman’s Co-op in South Thomaston, Maine. In that capacity, Thompson illegally bought lobsters from Co-op members for cash, rather than buying and selling those lobsters through the Co-op system. Thompson resold the lobsters he bought for cash to J.P.’s
Shellfish, a seafood distributor in Eliot, Maine. Thompson was not a licensed seafood dealer, making the sales to J.P.’s Shellfish illegal under Maine law. Under the federal Lacey Act, it is illegal to sell lobsters in violation of state law. Thompson also failed to report his profit from these side deals as income on his federal income tax return thus evading over $49,000 in income taxes.Thompson faces up to one year in prison and a $100,000 fine on the Lacey Act charge and up to five years in prison and a $250,000 fine on the tax evasion charge. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The charges are the result of a collaborative investigation conducted by the Internal
Revenue Service; the National Oceanic and Atmospheric Administration, Office of Law
Enforcement; and the Knox County Sheriff’s Office.Rochester Woman Pleads Guilty to Mail FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Aysha Humayun of Rochester, NY, pleaded guilty to conspiring to commit a fraud upon Intuit, Inc. through the use of the United States mail, and making false statements on tax returns before U.S. District Judge Frank P. Geraci. The mail fraud conspiracy charge carries a maximum penalty of 20 years in prison, a fine of $250,000 or both, and the tax charge carries a maximum penalty of three years in prison, a fine if $250,000, or both.
Assistant U.S. Attorney Bradley E. Tyler, who is handling the case, stated that between November 10, 2009, and June 10, 2011, Humayun, a/k/a Aysha Hussain, contacted Intuit, Inc., including by telephone, to place orders for free replacement software discs. The defendant falsely claimed that the software that had been previously purchased had been lost, stolen or damaged. As a result of the requests, Intuit, Inc. mailed free software discs to Humayun, and others, at addresses in Rochester and Gaithersburg, Maryland. After obtaining the free discs, the defendant advertised the software for sale eBay. Customers purchased the software and submitted payment electronically to the defendant via PayPal, a service facilitating online financial transactions.
Aysha Humayun was arrested along with her husband Humayun Farid. Charges are still pending against Farid. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
On October 15, 2012, Humayun filed a federal income tax return for 2011 which falsely reported $42,159 in profit or loss from a business. However, in truth and in fact, and as the defendant knew, Humayun’s total income was greater than that reported on the return.
The plea is the culmination of an investigation on the part of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, the Federal Bureau of Investigation, and the United States Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski.
Sentencing is scheduled for March 6, 2015, at 9:30 a.m. before Judge Geraci.
Return Preparer Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Victorio Rosier, 37, of Haiti, pled guilty today to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Rosier incorporated his company, Rosier’s Enterprise Corporation, and submitted applications for an Electronic Filing Identification Number (EFIN) and Preparer Tax Identification Number (PTIN) to file tax returns electronically with the IRS. Rosier obtained, without authorization, personal identifying information (PII) of various individuals, including their names, dates of birth, social security numbers and addresses, for the purpose of filing fraudulent income tax returns claiming tax refunds in those individuals’ names. Rosier or his co-conspirators printed out the refund checks, which his co-conspirators cashed. The checks contained the refund amount minus all applicable tax preparation and bank fees. Rosier charged exorbitant fees for the preparation of these fraudulent tax returns so that he could take away a larger percentage of the fraudulent tax refund for himself.
From February 2011 through March 2011, Rosier requested approximately $250,686 in fraudulent refunds. The number of victims involved is greater than fifty, but fewer than two-hundred fifty.
Sentencing is scheduled for January 23, 2015. At sentencing, Rosier faces up to 20 years in prison for the conspiracy charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Ravenna Man Charged with Making False Statement in Firearm PurchaseRead the Press Release
A federal grand jury returned a one-count indictment charging Jeremy P. Barnette, age 28, of Ravenna, Ohio, with making a false statement to a federally licensed firearms dealer, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on or about March 27, 2014, Barnette, in connection with the acquisition of the following firearms: a Norinco, Model 84S-1, 5.56x45 rifle; a Ruger, Model 03800, 45 ACP pistol; and a Glock, Model 19, 9mm pistol, from Ohio Trading, 8855 State Street, NE, Louisville, Ohio, stated on the Firearm Transaction Report that he was purchasing the firearms for himself, when he was, in fact, purchasing the firearms for another individual who was a convicted felon.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Portland Man Sentenced to over Eight Years for Bank RobberyRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Matthieu O’Rourke, a/k/a “Tony Angeless,” age 36, of Portland, was sentenced today in U.S.
District Court by Judge D. Brock Hornby to 100 months in prison and three years of supervised release for bank robbery. O’Rourke pleaded guilty on June 11, 2014.According to court records, on September 27, 2014, O’Rourke entered a Key Bank branch located in Portland wearing a bright construction vest, sunglasses, a hat and carrying a hard hat. He walked to a teller window and presented a note stating, in substance: “I’m a crazy person. No one will be hurt as long as you give me the money out of both drawers.” The teller complied and gave O’Rourke about $1,280. On October 30, 2013, O’Rourke was arrested in
Rivera Beach, Florida.At the sentencing hearing, O’Rourke was subject to an enhanced sentence as a career offender. His prior convictions included a 1998 conviction for solicitation to commit murder for which he was sentenced to eight years in prison.
This case was investigated by the Portland Police Department, the Federal Bureau of
Investigation and the United States Marshals Service.Philadelphia Man Gets 46 Month Prison Sentence for Tax FraudRead the Press Release
PHILADELPHIA – Victor Thach, 47, of Philadelphia, was sentenced today to 46 months in prison and ordered to pay $1,337,000 in restitution to the IRS, arising out of his scheme to evade payroll and other taxes. Between 2007 and 2009, Thach operated a 250-person labor leasing agency that supplied temporary workers (including many illegal aliens) to local mail-sorting facilities. During this time period Thach’s clients paid him more than $9.8 million for the labor he provided. Thach, in turn, paid his employees in cash and “under the table,” that is, without issuing IRS Forms W-2 or deducting any payroll taxes. Despite having a multi-million dollar payroll, and despite that two accountants separately counseled him about his tax and reporting obligations during the years in question, Thach did not file a single tax return (corporate or individual).
Thach pleaded guilty to 16 tax-related offenses, including conspiracy to defraud the United States and failure to collect, account for, and pay over taxes.
By withholding federal income taxes and Social Security and Medicare taxes from the “under the table” wages, Thach caused a tax loss of at least $1,049,763. Thach also never accounted for or paid over to the IRS his employers’ matching share of the Social Security and Medicare taxes, totaling $454,996. Instead of paying the government, Thach spent tens of thousands of dollars gambling at high-end casinos in Atlantic City (including losing $100,460 at the Borgata Casino in 2007), purchased a $59,000 Mercedes Benz SUV, made regular payments toward a $60,000 Hummer, traveled repeatedly to Cambodia, and wired more than $180,000 to accounts he controlled in Cambodia.
In addition to the prison term and restitution, U.S. District Court Judge Anita Brody ordered three years of supervised release and a $1,600 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Department of Labor Office of Inspector General. It is being prosecuted by Assistant United States Attorney Kevin Brenner.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Orville Williams Sentenced to 36 Months in Prison for CarjackingRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Orville Williams, 24, to 36 months in prison for carjacking, United States Attorney Ronald W. Sharpe announced.
Williams was arrested on December 3, 2013 as part of the investigation of carjackings in the area of the Donoe Bypass on St. Thomas. On April 17, 2014, he and co-defendant Troy Normil were charged in an Amended Information with carjacking, robbery, assault and weapons charges. On April 23, 2014, Williams pleaded guilty to carjacking.
In addition to a prison term, Williams was sentenced to three years of supervised release, a $100 special assessment and ordered to pay restitution.
The case was investigated by the Virgin Islands Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and prosecuted by Assistant U.S. Attorney Nelson L. Jones.
Nicaraguan National Sentenced in Federal Court for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NORWIN CASTELLON-LOPEZ, age 32, a citizen of Nicaragua, was sentenced today after having pled guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Carl J. Barbier sentenced CASTELLON-LOPEZ to 14 months imprisonment followed by two years of supervised release, and a $100 special assessment.
According to court documents, on or about July 29, 2014, CASTELLON-LOPEZ, reentered the United States after having been previously removed on December 22, 2010.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
New Orleans Woman Charged with Theft of Bank FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GAIL TEAGUE, 48, of New Orleans, was charged today in a Bill of Information with one count of defrauding Ochsner Federal Credit Union.
According to the Bill of Information, from approximately 2000 until approximately May 2013, TEAGUE was employed by Ochsner Federal Credit Union, first as a part-time employee and subsequently as office manager at the credit union. Specifically, in or around January, 2013, TEAGUE created a fictitious loan in the name “William Morris.” This loan was disbursed in the form of an official credit union check made payable to a local automobile dealership. The check was redeposited into the credit union. TEAGUE then withdrew $34,000 cash from the vault. Credit Union auditors interviewed TEAGUE and she signed a hand written confession on May 17, 2013, acknowledging that she stole $34,000.
If convicted, TEAGUE faces a possible maximum sentence of ten years imprisonment, and/or a fine of $250,000 and up to three years of supervised release.
The U. S. Attorney’s Office reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation and the National Credit Union Administration in investigating this case. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Napoleonville Woman Charged with Making False StatementsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHERKISSA JACKSON, 42, of Napoleonville, was charged today in a one-count Indictment with making false statements.
According to the Indictment, JACKSON filed an application with the Department of Homeland Security Federal Emergency Management Agency on September 3, 2008, claiming a loss for a trailer located at 3342 Back Marais Street, Napoleonville, Louisiana. On October 31, 2008, JACKSON received a wire transfer in the amount of $28,800 based on her claim of a loss to the trailer. However, the year before the storm, on January 6, 2007, JACKSON sold the trailer to another party as evidenced by a bill of sale, and thus, did not own the trailer on September 1, 2008. On or about February 23, 2012 in the Eastern District of Louisiana, the defendant JACKSON lied to a special agent of the Office of the Inspector General, Department of Homeland Security, namely, JACKSON told the agent that she owned the trailer at 3342 Back Marais Street, Napoleonville, at the time Hurricane Gustav impacted Napoleonville, when in truth and in fact, she had sold the trailer on January 6, 2007.
If convicted, JACKSON faces a possible maximum sentence of five years imprisonment, and/or a fine of $250,000 and up to three (3) years of supervised release.
The U. S. Attorney’s Office reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Department of Homeland Security, Office of Inspector General in investigating this case. Assistant United States Attorney Carter K. D. Guice, Jr. of the Fraud Unit is in charge of the prosecution.
Marrero Woman Sentenced for Theft of Government FundsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LISA ROBERTS, age 48, of Marrero, was sentenced for theft of government funds.
U.S. District Judge Jane Triche Milazzo sentenced ROBERTS to three years probation and restitution in the amount of $49,339 to the Social Security Administration.
According to court documents, ROBERTS’ sister was receiving social security widow’s benefits before her death. When she died, these benefits should have terminated. However, ROBERTS continued to receive the benefits, which were directly deposited into a bank account accessed by ROBERTS, who converted the funds to her personal use knowing that she was not entitled to receive those benefits.
U.S. Attorney Polite praised the work of the U.S. Social Security Administration- Office of Inspector General in investigating this matter. Assistant United States Attorney Loan “Mimi” Nguyen was in charge of the prosecution.
Many Resident Pleads Guilty to Distribution of MethamphetamineRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced that a man from Many pleaded guilty Wednesday to distributing methamphetamine.
Marcus Johnson, 37, of Many, La., pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of distribution of methamphetamine. According to evidence presented at the guilty plea, law enforcement agents conducted controlled buys of methamphetamine from Johnson on November 4, 7, and 12 of 2013. Johnson would conduct his methamphetamine sales at various retail stores in Many.
Johnson faces up to 20 years in prison, not less than three years of supervised release, and a $1 million fine.
The DEA and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brandon B. Brown is prosecuting the case.
Mansfield Man Charged with Attempted Bank RobberyRead the Press Release
A federal grand jury returned a two-count indictment charging Joseph A. Smith, Jr., age 25, of Mansfield, with attempted armed bank robbery and brandishing a weapon during and in relation to a crime of violence, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that on November 12, 2014, Smith Jr. attempted to rob the Directions Credit Union located at 460 South Diamond Street, Mansfield, Ohio, and brandished a firearm.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Mansfield Police Department and the Federal Bureau of Investigation’s Mansfield Office. The case is being prosecuted by Assistant United States Attorney Linda H. Barr.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Manhattan U.S. Attorney Announces Charges Against Doctor and 10 Other Individuals Involved in Illegal Distribution of More Than One Million Oxycodone PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James J. Hunt, Special Agent-in-Charge of the U.S. Drug Enforcement Administration’s New York Division (“DEA”), and William J. Bratton, the Police Commissioner of the New York City Police Department (“NYPD”), today announced the unsealing of an Indictment against 11 participants in a massive illegal drug distribution ring involving the prescription painkiller oxycodone. As detailed further below, the distribution ring operated out of purported medical clinics in Manhattan and the Bronx, including the office of MOSHE MIRILISHVILI, a Board certified, state licensed doctor, who alone wrote more than 13,000 medically unnecessary prescriptions for oxycodone in a two-year period, resulting in the unlawful distribution of nearly 1.2 million oxycodone tablets. The scheme also involved drug traffickers who oversaw crews of “patients” sent into the clinics to obtain medically unnecessary oxycodone prescriptions so that the pills could be obtained and resold, and clinic staff who profited by selling access to MIRILISHVILI and the fraudulent prescriptions he wrote.
Nine of the 11 defendants were arrested this morning in connection with the charges unsealed today and are expected to be presented before U.S. Magistrate Judge Kevin N. Fox later this afternoon. Defendants Ganeene Goode and Kevin Frye remain at large.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Moshe Mirilishvili violated the oath of his profession and flouted the law to write more than 13,000 medically unnecessary prescriptions for oxycodone. He and his co-defendants, motivated by greed, allegedly conspired to enrich themselves by flooding the illicit market for this highly addictive and dangerous drug.”
DEA Special Agent-in-Charge James C. Hunt said: “As alleged, these defendants are drug dealers playing doctor. They use nicknames, roles and an organizational hierarchy that mimics street drug trafficking crews. Instead of providing legitimate medical examinations or treatment, Dr. Mirilishvili and his office staff allegedly took payments from drug chiefs, drug crews and ‘patients’ in exchange for oxycodone prescriptions used to fuel the spread of opioid abuse throughout New York City.”
NYPD Commissioner William J. Bratton said: “Dr. Mirilishvili not only made millions in illegal profits, he contributed to the growing addiction of oxycodone. Today’s arrests will help prevent more illegally prescribed prescription pain killers from reaching our streets and will hopefully improve quality of life for the residents who live on the same blocks as these pseudo medical facilities. I want to thank the investigators, agents and prosecutors involved in bringing this drug distribution network to justice.”
The following allegations are based on the Indictment unsealed today in Manhattan federal court:
Oxycodone is a highly addictive, prescription-strength narcotic used to treat severe and chronic pain conditions. Every year more than 13 million Americans abuse oxycodone, with the misuse of prescription painkillers such as oxycodone leading to as many as 500,000 annual emergency room visits. Oxycodone prescriptions have enormous cash value to street level drug dealers, who can fill the prescriptions at most pharmacies and resell the resulting pills at vastly inflated rates. Indeed, a single prescription for 90 30-milligram oxycodone pills has an average resale value in New York City of $2,700 or more.
From approximately January 2012 until December 2014, the drug distribution ring operated at various purported medical clinics in Manhattan and the Bronx, including the office of the defendant MOSHE MIRILISHVILI (the “Clinic”), where MIRILISHIVILI, a Board certified, state licensed doctor, wrote thousands of medically unnecessary prescriptions for large quantities of oxycodone in exchange for cash payments. MIRILISHVILI typically charged $200 in cash for “patient visits” that typically involved little, if any, actual examination and almost always resulted in the issuance of a prescription for a large quantity of oxycodone, typically 90 30-milligram tablets.
Virtually none of these “patients” had any medical need for oxycodone, nor any legitimate medical records documenting an ailment for which oxycodone would be prescribed. Instead, most of these individuals were members of “crews” – that is, they were recruited and paid by drug traffickers (the “Crew Chiefs”), to pose as “patients” in order to receive medically unnecessary prescriptions. The Crew Chiefs then obtained these prescriptions and arranged for them to be filled at various pharmacies so that the oxycodone pills thereby obtained could be resold on the streets of New York.
Various Clinic employees participated in and profited from the scheme, charging Crew Chiefs cash fees for scheduling “patient visits” necessary to obtain these oxycodone prescriptions (the “Office Staff”). The Office Staff also profited by creating fake documents such as MRI reports purporting to reflect injuries or urinalysis reports ostensibly documenting that the patient was taking rather than selling the oxycodone, all of which MIRILISHVILI would frequently request in an effort to avoid the attention of law enforcement.
In total, between October 2012 and December 2014, MIRILISHVILI wrote more than 13,000 medically unnecessary prescriptions for oxycodone, comprising nearly 1.2 million oxycodone tablets with a street value of $36,000,000 or more. MIRILISHIVILI collected more than $2.6 million in fees for “doctor visits” during this time period.
To maximize their profits, many of the Crew Chiefs involved in this scheme also sent their “patients” to see other doctors operating out of similar fraudulent medical clinics, including a clinic on Southern Boulevard in the Bronx, New York, and a clinic in Upper Manhattan. Between January 2012 and the present, doctors at these clinics wrote more than 35,000 oxycodone prescriptions, virtually none of them medically necessary, resulting in the unlawful distribution of millions of oxycodone tablets.
All of the defendants are charged with one count of conspiracy to distribute and possess with intent to distribute oxycodone. This offense carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
A chart containing each defendant’s age and residence information is attached. The case is assigned to U.S. District Judge Colleen McMahon.
U.S. Attorney Bharara praised the investigative efforts of the Drug Enforcement Administration’s Tactical Diversion Squad (Group TDS-NY), which led this two-year investigation, and thanked the New York State Department of Financial Services and the Hackensack, New Jersey, Police Department for their assistance in the investigation. DEA’s Group TDS-NY consists of agents and officers from the U.S. Drug Enforcement Administration, the New York City Police Department, the Town of Orangetown Police Department, and the Westchester County Police Department. Mr. Bharara also noted that the investigation is ongoing.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Edward B. Diskant and Brooke E. Cucinella are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
Mirilishvili, Moshe et al. Indictment
Man Sentenced to 9 Years in Prison for Armed Robbery of Belleville Liquor StoreRead the Press Release
Case is one of many brought as a result of the United States Attorney Stephen R. Wigginton’s Metro-East Armed Robbery Initiative
Follow @SDILNewsRoderick Taylor, 23, was sentenced to just over 9 years in prison today on a three-count indictment charging him with Conspiracy to Commit Interference with Commerce by Robbery, Interference with Commerce by Robbery, and Use of a Firearm During a Crime of Violence, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced. The Armed Robbery count arises from the federal Hobbs Act, which makes it a crime to obstruct, delay or affect interstate commerce by robbery, and is used by United States Attorney Wigginton as a way to combat armed robbery in the Southern District of Illinois. Following his prison sentence, Taylor will be on federal supervised release for 5 years. Taylor was also ordered to pay restitution in the amount of $10,000. Taylor has been in custody since his arrest on July 12, 2013.
Documents filed in US District Court establish that on July 12, 2013 Taylor went with his two co-defendants, Timothy Collier and Charmonequette Reynolds, to Arena Liquor located at 105 S. Belt E, Belleville, Illinois with the plan to commit a robbery. While Reynolds waited in the car, Taylor and Collier entered Arena Liquor both armed with a firearm. Collier and Taylor pointed the two firearms at the two individuals working in the store and demanded money from the cash registers as well as personal belongings from the victims. Taylor and Collier left the liquor store with a large sum of United States currency and a cell phone belonging to one of the victims. They returned to the getaway vehicle and the three fled from the scene. A witness driving near Arena Liquor noticed Collier and Taylor running from the store and followed them as they ran several blocks to the getaway vehicle. The witness recorded the license plates of Reynolds’ vehicle and gave the number to Belleville Police officers. Reynolds and Taylor were apprehended within hours of the robbery. During a recorded interview with law enforcement, Taylor admitted his involvement in the planning and participation in the armed robbery of Arena Liquor and identified Collier and Reynolds as the other two individuals involved.
This case was investigated by the Belleville Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Ali Summers.
Main Street Pharmacy Co-Owner Pleads Guilty to Criminal Violation of the Federal Food, Drug, and Cosmetic ActRead the Press Release
Jackson, Tenn. – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, and FDA Commissioner Margaret A. Hamburg, M.D, announced today that Main Street Family Pharmacy, LLC, a compounding pharmacy in Newbern, Tennessee, and the company’s co-owner, David A. Newbaker, each pleaded guilty to a misdemeanor criminal violation of the federal Food, Drug, and Cosmetic Act late last week.
In early 2013, the United States Department of Health and Human Services Food and Drug Administration (“FDA”) began an investigation into adulterated Methylprednisolone Acetate (“MPA”), a steroid used to treat pain in human beings. The FDA is authorized by federal law to enforce the Federal Food, Drug, and Cosmetic Act, which, among other things, ensures that drug products are safe and effective for their intended uses and are not adulterated.
According to the information and statements made in open court, on or about May 22, 2013, the FDA collected samples of MPA from Logan Primary care, a clinic in Herrin, Illinois. Invoices obtained from the clinic revealed the source of the MPA obtained was from Main Street Family Pharmacy, LLC, in Newbern, Tennessee. The FDA’s Denver Laboratory tests indicated the MPA sample contained bacterial contaminants.
Newbaker, a state-licensed pharmacist, was responsible for, and actively directed, Main Street Family Pharmacy, LLC’s drug compounding activities. His duties on February 7, 2013 included oversight of employee training and the quality control of sterile drugs compounded by Main Street.
Chief United States District Judge J. Daniel Breen sentenced Newbaker to 12 months of probation, and ordered Newbaker and Main Street to each pay a fine of $25,000.
The Court also entered a civil consent decree of permanent injunction against Main Street, Newbaker and the company’s other co-owner, Christy R. Newbaker. The consent decree prohibits Main Street and the Newbakers from manufacturing, holding, and distributing drug products until the company comes into compliance with the FD&C Act and its regulations, among other requirements. This action further protects the health of the American public by ensuring that Main Street and the Newbakers comply with the law.
“This prosecution shows there are high standards for pharmacists to meet to protect the public, and serious consequences for those who fail to meet them,” stated U.S. Attorney Stanton. “No one is above the law, including those that wear white lab jackets.”
“Americans expect and deserve safe, high-quality drug products, yet Main Street produced and shipped unapproved drugs that were contaminated, and put patients at risk for serious infection,” said FDA Commissioner Hamburg. “The FDA’s enforcement actions against Main Street and its owners reflect our commitment to using all appropriate authorities to protect the public health.”
The case was investigated by the FDA’s Office of Criminal Investigations. Assistant United States Attorney Matt Wilson represented the United States of America.
Lowell Man Convicted of Aiding and Abetting the Illegal Purchase of FirearmsRead the Press Release
CONCORD, NEW HAMPSHIRE – Lawrence Madsen of Lowell, Massachusetts was convicted, after a jury trial in United States District Court for the District of New Hampshire on six counts of aiding and abetting the illegal purchase of firearms at various southern New Hampshire federally licensed firearms dealers, announced United States Attorney John P. Kacavas.
The case was investigated by Federal Bureau of Alcohol, Tobacco, Firearms and Explosives agents and officers, Dan Futrell, Richard Donahue, Eric Kotchian and Michael Bergeron. The case was prosecuted by Assistant United States Attorneys Nick Abramson and Seth Aframe.
The trial evidence showed that Madsen, who could not legally buy firearms in Massachusetts, asked his New Hampshire friend, Brett Crawford, to purchase the firearms on his behalf in exchange for a payment of $100 for each gun purchased. In October and November 2013, Crawford purchased eight hand guns on six occasions for Madsen. On each occasion, Madsen was present and identified the guns which he wanted Crawford to buy. When Crawford made the purchases using Madsen's money, Crawford lied on a federal form required for the sale of a firearm by stating that he was purchasing the firearms for himself when, in fact, he was buying them for Madsen. The evidence further established that, following the illegal purchase of these firearms, Madsen sold them on the street in Lowell.Lost City Man Sentenced to 60 Months for Firearm PossessionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JERRY WAYNE MORRISON, JR., a/k/a "HOOTIE," age 34, of Lost City, Oklahoma, was sentenced to 60 months imprisonment, followed by 3 years of supervised release for Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1).
The charge arose from an investigation by the District 27 District Attorney’s Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The defendant was indicted in November, 2013 and pled guilty in July, 2014.
The Indictment alleged that on or about November 30, 2012, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm, to-wit: one Taurus, model PT709 Slim, 9mm caliber pistol, which had been shipped and transported in interstate commerce.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Kyle Waters represented the United States.
Justice Department Settles Lawsuit Against Equity Transportation Co., Inc. to Enforce Employment Rights of United States Army National Guard MemberRead the Press Release
The United States Justice Department’s Civil Rights Division and U.S. Attorney Patrick Miles Jr. announced today that a settlement has been reached with Equity Transportation Inc. (ETC) resolving claims that ETC violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), by failing to reemploy U.S. Army National Guard Member Johnathan Dunn following his military deployment.
According to documents filed today in the United States District Court for the Western District of Michigan, Dunn is a Sergeant in the United States Army National Guard serving with the 230th Sustainment Brigade DET1 out of Smyrna, Tennessee. In August 2012, Dunn notified his employer, ETC, that he was going to be deployed for one month of active-duty military service in September 2012 with the Army National Guard’s Counter-Drug Taskforce. The department alleges that Dunn served his active-duty and was released honorably after four weeks. Upon his release from active-duty on Sept. 27, 2012, Dunn notified ETC that he was ready to return to work immediately. Instead of promptly re-employing Dunn, ETC advised him that his employment had been terminated while he was on leave because of too many absences from work. The department alleges that not only did ETC fail to reemploy Dunn upon his return from military leave, but that the employer has also failed to reemploy him since that time. Under the terms of the settlement, filed as a consent decree, ETC has agreed to pay $11,000 as back pay and liquidated damages to Dunn.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations.
“The men and women who wear our nation’s uniform need to know that they will be protected from the types of injustices experienced by Mr. Dunn when they return from military service,” said Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division. “The Department of Justice, through its enforcement of USERRA, strongly supports the rights of service members in reclaiming their rightful positions in the workforce after they complete their military service to our country.”
“Members of the United States Army National Guard are often called to make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Miles. “When they are deployed in the service of our country, their employment rights must be protected. Our office and the entire Department of Justice are committed to ensuring that individuals do not lose their rights while they are protecting ours.”
This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service. The case is being handled by the Employment Litigation Section of the Department of Justice Civil Rights Division and the U.S. Attorney’s Office for the Western District of Michigan, who work collaboratively with the DOL to protect the jobs and benefits of National Guard and Reserve servicemembers upon their return to civilian life.
The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.
Justice Department Requires Divestiture of Commercial Air Springs Business in Connection with Continental AG Acquisition of Veyance Technologies, Inc.Read the Press Release
The Department of Justice announced today that it will require the divestiture of the North American commercial vehicle air springs business of Veyance Technologies, Inc. in order for Continental AG to proceed with its proposed $1.8 billion acquisition of Veyance. The department said that, without the divestiture, the proposed acquisition likely would leave just two dominant firms and risk higher prices and decreased service for commercial vehicle air springs customers in North America.
The Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department's competitive concerns alleged in the lawsuit.
“The proposed acquisition would have eliminated one of only three significant suppliers of air springs for commercial vehicles in North America,” said Bill Baer, Assistant Attorney General in charge of the department’s Antitrust Division. “Today’s proposed settlement will ensure competitive marketplaces for both North American commercial vehicle manufacturers and vehicle owners who purchase replacement air springs.” Baer also noted the close cooperation between the department and foreign competition colleagues. “We are pleased to have worked closely with our counterparts in Canada, Brazil and Mexico to coordinate our analyses and the formulation of our respective remedies.”
Commercial vehicle air springs are used in trucks, trailers and buses to provide stability to the suspension system, keep the tires in contact with the road and provide comfort and reduced driver fatigue in cabins and seats.
According to the complaint, the proposed acquisition would have reduced the number of suppliers of air springs to North American commercial vehicle manufacturers from three to two. The creation of a virtual duopoly would have facilitated anticompetitive coordination between the two remaining suppliers and risked price increases and reductions in the quality of service by limiting availability or delivery options to original equipment manufacturers. Similarly, the proposed acquisition would have reduced the number of significant suppliers of replacement air springs to commercial vehicle owners, which likely would have lessened competition in the North American aftermarket for commercial vehicle air springs.
Under the terms of the proposed consent decree, Continental must divest Veyance’s North American air springs business, which includes air spring manufacturing and assembly facilities in San Luis Potosi, Mexico; research, development, engineering, and administrative assets in Fairlawn, Ohio; and certain other tangible and intangible assets.
In addition to the department’s competitive concerns relating to commercial vehicle air springs, the department was concerned that the proposed acquisition would reduce competition in the market for automotive air conditioning barrier hose (“barrier hose”), which is used to carry refrigerant in automotive air conditioning systems. Veyance manufactures barrier hose. Continental does not itself manufacture barrier hose, but does manufacture hose assemblies that incorporate barrier hose supplied by a third party. Because Continental had an exclusive supply agreement with the only significant firm that competes with Veyance in the manufacture and sale of barrier hose in North America, the proposed acquisition raised additional competitive concerns. Continental, however, has waived the exclusivity requirement in its supply agreement, so its supplier now may sell air conditioning hose products to any third party.
The department’s Antitrust Division, the Canadian Competition Bureau, the Administrative Council for Economic Defense in Brazil, and the Federal Competition Commission in Mexico cooperated closely throughout the course of their respective investigations.
Continental is a corporation organized and existing under the laws of Germany, with headquarters in Hanover, Germany. Continental is a leading German automotive manufacturing company, specializing in tires, brake systems, and components, and it is one of the world’s largest producers of rubber products. Its annual sales for 2013 were approximately $40 billion. ContiTech North America Inc., of Montvale, New Jersey, is a part of ContiTech AG, a division of Continental. ContiTech North America produces and sells parts, components, and systems, including commercial vehicle air springs, for the automotive engineering industry in North America.
Veyance, incorporated in Delaware, is headquartered in Fairlawn, Ohio. Veyance manufactures engineered rubber products for heavy-duty industrial, automotive, and military applications. Veyance also produces and sells automotive and commercial vehicle parts, including commercial vehicle air springs, in North America. In 2013, Veyance had $2.1 billion in sales.
As required by the Tunney Act, the proposed consent decree, along with the department's competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Johnson Brothers Found Guilty of Conspiracy to Commit FraudRead the Press Release
Fargo – U.S. Attorney Timothy Q. Purdon announced that on December 11, 2014, a Federal Trial Jury found Aaron A. Johnson and Derek M. Johnson, guilty on charges of conspiracy to commit fraud in connection with Federal Crop Insurance and Federal Crop Disaster Programs; making false statements to the United States Department of Agriculture, acting through the Risk Management Agency (RMA); and, making false statements to federal law enforcement authorities. The two brothers farmed potatoes near Northwood, ND from at least as early as 2002 until about January 20, 2010, and thereafter. The guilty verdicts were returned at the conclusion of a two week jury trial.
The brothers’ scheme involved intentionally destroying and damaging potato crops, in order to obtain federal crop insurance indemnities and federal crop disaster benefits, over a period of years. As part of the scheme, the brothers intentionally poisoned their potato seed during planting. They intentionally destroyed or neglected their growing crops in the field and intentionally destroyed potatoes in storage. The brothers applied concentrated nitrogen fertilizer and septic system products such as Rid-X and Flush to their potato seed prior to planting; they intentionally destroyed their growing potatoes using cultivator equipment; intentionally left potatoes in the field during harvest. They added septic system products such as Rid-X and Flush to water and sprayed it on top of potatoes in storage; purchased and resold unused farm chemicals that were intended to protect the crop but never used; they sprayed water on fields in order to fool neighbors and others into thinking they cared for the crop; they added frozen potatoes to the top of the stored potato pile and used a portable heater to increase warehouse temperatures in order to regulate the rate of potato Soft Rot; they did all of this in advance of filing claims for lost potato production and stored potato crops over a period of years. The brothers and their farming operations received millions of dollars in federal crop insurance indemnities, subsidized crop insurance premiums and federal disaster benefits.
The Johnson brothers face up to 30 years in prison and millions of dollars in fines, restitution and criminal forfeiture. The Honorable Chief Judge Ralph R. Erickson has set sentencing hearing and forfeiture hearings for both defendants beginning March 9, 2015, at 1:30 pm in United States District Court in Fargo, ND.
The case was investigated by the United States Department of Agriculture and the Risk Management Agency
Assistant U.S. Attorney Clare Hochhalter and AUSA Nick Chase prosecuted the case.
Jacksonville Man Indicted on Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return of an indictment charging Nicodemus Darnell Jefferson (40, Jacksonville) with failing to register as sex offender. If convicted, he faces up to 10 years in federal prison. Jefferson has been in custody since his arrest on September 30, 2014.
According to the indictment, on December 17, 1998, Jefferson was convicted of criminal sexual conduct with a minor in Charleston County, South Carolina. Between March 17, 2014, and September 30, 2014, Jefferson moved from Maryland to Florida. He failed to register in Florida as a sex offender as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the Jacksonville Sheriff’s Office, the United States Marshals Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Investment Advisor Pleads Guilty to Defrauding Investors for Millions of DollarsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of SEAN MEADOWS, 41, for using his financial planning and asset management firm, Meadows Financial Group (MFG), operated a Ponzi scheme and fraudulently obtained millions of dollars from dozens of victims. The defendant pleaded guilty on December 10, 2014, before Judge Susan Richard Nelson in U.S. District Court in St. Paul, Minn., to Mail Fraud, Wire Fraud, and Money Laundering offenses.
According to his guilty plea and documents filed in court, MEADOWS operated MFG, through which he sold insurance and investment products to clients in Minnesota, Indiana, Arizona, and elsewhere. From 2007 until April 2014, MEADOWS successfully solicited a total of at least $10 million from more than 50 clients for a purported investment managed by MFG. The defendant falsely told victims that he would use their funds to purchase bonds, real estate, or other legitimate third-party investments.
MEADOWS lured victims into removing funds from their retirement and other savings accounts by promising high rates of returns – up to 10 percent annually – when, in fact, he did not invest their funds and did not have a legitimate means by which to make interest payments. Instead, MEADOWS used funds from new investors to make interest and/or principal repayments to existing investors.
According to his guilty plea and documents filed in court, MEADOWS used the illicit proceeds of the Ponzi scheme to pay personal expenses, including: making “salary” payments to himself; making payments to his spouse; paying expenses on personal investment properties; paying personal credit card bills; purchasing a vehicle for himself; traveling to Las Vegas; gambling at various casinos and online; and spending more than $100,000 at adult entertainment establishments in Minnesota and Las Vegas.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Langner and Melinda Williams.
This case is the result of an investigation conducted by the Minnesota Department of Commerce Fraud Bureau, the United States Postal Inspection Service, and the Internal Revenue Service- Criminal Investigation Division.
Defendant Information: SEAN MEADOWS, 41
Eden Prairie, Minn.
Convicted: • Wire Fraud, 7 counts
• Mail Fraud, 3 counts
• Transaction Involving Fraud Proceeds, 1 countHudson County Contractor Indicted on Additional Charges of Paying Bribes to Fire OfficialRead the Press Release
NEWARK, N.J. – A Hudson County, N.J., man was indicted today on an additional charge of paying thousands of dollars in bribes to a fire official in exchange for the elimination of outstanding fines and penalties on certain buildings that had fire code violations, U.S. Attorney Paul J. Fishman announced.
Victor Coca, 48, of West New York, N.J. was also charged by a federal grand jury with two counts of violating the Travel Act. Coca had been arrested May 20, 2014, by special agents of the FBI and charged by complaint with one count of paying bribes to the fire official for the West New York Bureau of Fire Prevention.
According to documents filed in this case and statements made in court:
Coca was the owner of a general contracting company located in West New York. There were two buildings in West New York with outstanding fines for fire code violations – one building had approximately $14,500 in fines and the other had approximately $8,730,000 in fines and penalties.
Coca paid the fire official cash bribes to reduce or eliminate the outstanding fines. For the first building, Coca paid a $2,000 cash bribe to the fire official to eliminate the outstanding $14,500 in fines. For the second building, Coca wrote paid a $5,000 cash bribe to the fire official, in return for the fire official reducing the $8,730,000 in outstanding penalties, thus making the amount due to the West New York Bureau of Fire Prevention only the initial fine amount of $5,000.
The charge is punishable by a maximum potential penalty of ten years in prison and a maximum fine of $250,000 or twice the gain or loss arising out of the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-436Defense counsel: Zak Aljaludi Esq., Union City, N.J.
Coca, Victor Indictment
Honduran National Sentenced for Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOSE LUIS JOSE LUIS MAYORGA-LEMUS, age 24, a citizen of Honduras, was sentenced yesterday after having pled guilty to a one-count indictment for illegal reentry of a previously removed alien.
U.S. District Judge Ivan L.R. Lemelle sentenced MAYORGA-LEMUS to 3 months imprisonment followed by one year of supervised release, and a $100 special assessment.
According to court documents, on or about August 28, 2014, MAYORGA-LEMUS, reentered the United States after having been previously removed on August 3, 2011.
U.S. Attorney Polite praised the work of the ICE Enforcement and Removal Operations in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
Hammond Man Indicted for Violations of the Federal Controlled Substances Act and the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RYAN BINNER, age 42, of Hammond, was charged today in a four-count Indictment for violations of the Federal Controlled Substances Act and the Federal Gun Control Act. In Counts One and Two of the Indictment, BINNER was charged with distributing a quantity of methamphetamine. In Count Three, BINNER was charged with possessing with intent to distribute five grams or more of methamphetamine. In Count Four, BINNER was charged with possessing a short-barreled shotgun in furtherance of a drug trafficking crime.
Counts One and Two of the Indictment each carry a maximum term of imprisonment of twenty years, a fine of up to $1,000,000, and a minimum of three years of supervised release following any term of imprisonment. Count Three carries a minimum term of imprisonment of five years and a maximum term of imprisonment of forty years, a fine of up to $5,000,000, and a minimum of four years of supervised release following any term of imprisonment. Court Four carries a minimum term of imprisonment of ten years, a fine of up to $250,000, and a maximum of five years of supervised release following any term of imprisonment.
U.S. Attorney Polite reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, with assistance from the Tangipahoa Parish Sheriff’s Office and the Hammond Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Grove City Woman Sentenced in Illegal Alien Case for Failing to File an Income Tax ReturnRead the Press Release
COLUMBUS – Jennifer A. Quintana, 38, of Grove City, Ohio, owner and operator of Quintana Construction, was sentenced to two years of probation, four months of house arrest, 50 hours of community service and was ordered to pay $61,787.32 in restitution to the Internal Revenue Service and a $5,000 fine. The company pleaded guilty and was sentenced for assisting illegal aliens in this country. Jennifer Quintana pleaded guilty to on one count of willfully failing to file a federal income tax return with the IRS. Quintana Construction previously agreed with the government to cease doing business as a labor contracting firm for the construction industry.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Kathy Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Special Agent in Charge James Vanderberg, U.S. Department of Labor, Office of Inspector General, and Special Agent in Charge Marlon Miller, Immigration and Customs Enforcement (ICE) announced the sentences handed down today by U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, Quintana Construction, which was operated out of Jennifer Quintana’s residence, is a construction labor contracting business that provided labor for framing assembly and apartment/condominium construction in the greater Columbus, Ohio area. Jennifer Quintana is married to Felix Quintana. Felix Quintana is a citizen of the country of Mexico and is documented to work in the U.S. Felix Quintana organized and supervised the workforce for Quintana Construction and was considered the on-site supervisor.
From January 2005 through November 2009, Quintana Construction knowingly used the labor of undocumented illegal aliens to do construction work on various job sites. The investigation revealed that in 2007, 15 undocumented illegal aliens were utilized by Quintana Construction and in 2008, 14 undocumented illegal aliens were used. For each year, the illegal aliens were the primary work force used by Quintana Construction. The undocumented illegal alien employees had no authorization to seek or maintain gainful employment in the U.S.
Jennifer Quintana submitted false forms to the IRS stating that workers were sub-contractors of Quintana Construction with valid taxpayer identification numbers, when in fact she knew they were undocumented illegal alien workers.
In 2007, Jennifer Quintana filed 18 Forms 1099-MISC with the IRS on behalf of Quintana Construction which reported nonemployee compensation paid to sub-contractors. Of these 18 Forms 1099-MISC, 15 were rejected by the IRS for not having matching names and taxpayer identification numbers. In addition, of the 18 Forms 1099-MISC, 10 of them had also been rejected by the IRS in a prior year. Upon acknowledgement of these rejected Forms 1099-MISC and receipt of the IRS Form CP2100, which reports such rejections, Quintana Construction was obligated to begin backup employment tax withholdings for those individuals, reporting such backup withholdings on a Form 945, Annual Return of Withheld Federal Income Tax, and was obligated to pay to the IRS any applicable collected backup withholdings, which Jennifer Quintana failed to do.
For tax year 2008, Quintana Construction, by and through Jennifer Quintana, paid wages in the form of non-employee compensation to her employees totaling $220,669.00, which was subject to backup withholding of federal income taxes totaling $61,787.32.
"Business owners who use undocumented workers create an unfair business advantage over there competitors, especially by not withholding and remitting income taxes to the Internal Revenue Service," said Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the investigation by IRS, the Department of Labor, and ICE, and Senior Litigation Counsel Douglas W. Squires, who is representing the United States in this case.
Grand Marais Investment Advisor Sentenced to 60 Months in Prison for $5.7 Million Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of MICHAEL ROBERT DRILLING, 47, to 60 months in federal prison for devising and executing a multi- million dollar investment fraud scheme. DRILLING pleaded guilty on April 17, 2014, to one count of securities fraud. He was sentenced on December 10, 2014, before Judge Ann D. Montgomery in U.S. District Court in Minneapolis.
According to the defendant’s guilty plea and documents filed in court, from May 2009 through March 2014, DRILLING, defrauded 13 investment advisory clients for more than $5.7 million. Through his company, Financial Advisory Partners LLC, DRILLING developed personal relationships with these clients and convinced them to entrust to him the management of their investment funds. In order to conceal the theft, DRILLING created phony accounts for each of his clients using a financial planning website, eMoneyAdvisor.com, that made it appear as if investment funds had been placed in real investment vehicles.
In total, DRILLING stole more than $5.7 million in investment funds from thirteen of his clients. He lied to his clients, telling them that their money was placed in a larger pool of funds that could be managed more efficiently. Instead, DRILLING used the stolen funds for his own personal and business expenses. DRILLING also lost millions of dollars at casinos.
This case resulted from an investigation conducted by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney Timothy C. Rank.
Defendant Information: MICHAEL ROBERT DRILLING, 47
Grand Marais, Minn.
Convicted: • Securities Fraud, 1 count
Sentenced: • 60 months in prison
• Restitution in the amount of $5,778,877.88Fort Hall Women Pleads Guilty to Assault on Federal OfficerRead the Press Release
POCATELLO - Caitlin Eagle, 24, of Fort Hall, Idaho, pleaded guilty yesterday in United States District Court to assaulting a federal officer, U.S. Attorney Wendy J. Olson announced.
On February 18, 2014, Fort Hall police were dispatched to an area in Fort Hall after a report of shots fired. The caller said the persons involved were dressed in black and were running from the area. The responding officer arrived in the area and saw a person in a black coat. The officer tried to talk with the person, but she continued walking away from the officer. The person, later identified as Eagle, gave the officer a false name and was uncooperative. The officer smelled a strong odor of an alcoholic beverage on her person, a violation of Fort Hall tribal law, and the officer attempted to arrest her. As the officer tried to handcuff her, she became combative and struck the officer in the face several times. The officer was able to handcuff Eagle and with the help of another officer was able to get Eagle into the police car. The injured officer was treated at the hospital for abrasions on his cheek and nose.
An assault on a Fort Hall police officer is punished as an assault on a federal officer under federal law. The charge of assault on a federal officer is punishable by up to eight years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Eagle is scheduled to be sentenced on March 11, 2015, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Pocatello.
Former Usps Employee Sentenced to 3 Years in Federal Prison for Trafficking Drugs He Stole from the MailRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EDWARD HOGAN, 38, of Waterbury, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 36 months of imprisonment, followed by three years of supervised release, for trafficking cocaine and marijuana that he stole from the U.S. Mail.
This matter stems from a federal investigation into the use of the mails to transport narcotics from Puerto Rico to the greater Waterbury area.
According to court documents and statements made in court, Edward Hogan was employed by the U.S. Postal Service as a supervisor of customer service assigned to the Plaza Station Post Office in Waterbury. From approximately January 2012 to August 2013, Hogan used his position with the U.S. Postal Service to profile packages that he believed contained illegal drugs by making note of the originating address, destination address, size of the package and value of the postage. Upon identifying a package that he suspected contained narcotics, he would steal the package from the mail and bring it to his residence or the residence of his brother, Justin Hogan, where they would open the package and extract the drugs. Edward Hogan would then reseal the empty package and deliver it to the destination.
The brothers distributed the stolen drugs to third parties for profit.
Through this scheme, Edward and Justin Hogan stole and then sold more than 100 pounds of marijuana and two kilograms of cocaine.
On November 9, 2013, law enforcement surveilled Edward Hogan as he intercepted a package containing approximately two kilograms of cocaine that was delivered to the Waterbury Main Post Office on Grand Street. He then transported the parcel to his residence. Justin Hogan arrived at the residence a short time later and opened the package in Edward Hogan’s presence.
On August 7, 2014, Edward Hogan pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, and one count of embezzlement of mail by a U.S. Postal Employee.
On the same date, Justin Hogan pleaded guilty to one count of conspiracy to possess with intent to distribute 500 grams or more of cocaine, and one count of receipt of stolen mail matter. On December 4, 2014, he was sentenced to 24 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation, the U.S. Postal Inspection Service and the U.S. Postal Service – Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
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Tom Carson
(203) 821-3722 [email protected]Former Seguin Businessman Pleads Guilty to Accepting SNAP Benefits for Prohibited ItemsRead the Press Release
In San Antonio today, the former owner of J.M. Food Mart in Seguin, Texas, admitted to collecting approximately $275,000 from a scheme to trade Supplemental Nutrition Assistance Program (SNAP) benefits for ineligible items announced United States Attorney Robert Pitman.
Appearing before United States Magistrate Judge John Primomo this morning, 55-year-old Aijaz Aslam pleaded guilty to one count of wire fraud. By pleading guilty, Aslam admitted that from November 2009 until May 2013, he conducted materially fraudulent transactions by selling ineligible items such as alcohol and tobacco products to SNAP beneficiaries using their Lone Star Cards at the point of sale. Aslam also admitted that he fraudulently traded SNAP benefits for cash while generally charging SNAP beneficiaries up to double the amount of cash received.
Aslam faces up to 20 years in federal prison. He is currently on bond pending sentencing scheduled for March 2, 2015, before United Stated District Judge David A. Ezra.
This case was investigated by the U.S. Department of Agriculture (USDA). Assistant United States Attorney Thomas P. Moore is prosecuting this case on behalf of the Government.Former Radio Host John Balyo Sentenced to 40 Years in Federal Prison for Child ExploitationRead the Press Release
GRAND RAPIDS, MICHIGAN – Former local radio host John Balyo, 35, of Grand Rapids, was sentenced to 40 years in federal prison today for producing and possessing child pornography. Balyo pled guilty to the charges in July 2014 and, as part of the plea, agreed to cooperate fully with law enforcement in this investigation and the investigation into Ronald Moser. Moser pled guilty in August 2014 to producing and possessing child pornography and is scheduled for sentencing later this month. Balyo’s sentence included a lifetime of supervised release after prison. He will also have to pay $8,500 in restitution to the victims, who the judge recognized will be haunted by Balyo’s actions forever. In delivering the sentence, United States District Judge Robert Holmes Bell stressed the need for a “stern and certain judicial censure” for the “repulsive acts” Balyo committed.
Balyo met Moser online in November 2013, and the two immediately started emailing about a shared sexual interest in young boys. Balyo arranged to meet Moser and a 12-year-old boy three times in April and May 2014 in Kalamazoo and Battle Creek hotels. Balyo showed Moser other child pornography that he produced to prove that he was not a police officer. Balyo rented the rooms and brought a bondage kit containing zip ties, handcuffs, duct tape, rope, and rubber gloves. He also brought his professional grade photography equipment that he used for wedding photography. Balyo and Moser sexually assaulted and photographed the boy on all three occasions. Balyo gave the child a couple hundred dollars for his “modeling career.”
Moser was arrested in early June, through which investigators learned of Balyo. Balyo was arrested on June 20, 2014, while hosting a music festival in Gaylord, Michigan, with his radio station. That same day, Homeland Security Investigations (HSI) and Michigan State Police executed a search warrant at Balyo’s residence and searched his storage unit. Inside the storage unit, investigators found the bondage kit; video cameras; thumb drives; and various news clippings about missing children, children’s obituaries, and child pornography laws. Balyo gave his computer to a friend to hold onto shortly after Moser was arrested, and the friend turned it in to police upon learning of Balyo’s arrest. The computer contained multiple photographs of child pornography, including the ones from the Kalamazoo hotel room.
Balyo was convicted in Calhoun County of Criminal Sexual Conduct, First Degree, and was sentenced to 25-50 years in state prison. It is expected that he will serve his federal and state sentences simultaneously.
“Individuals who prey upon children and create sexually graphic images come from all walks of life, but they will be found and prosecuted. The U.S. Attorney’s Office in West Michigan and our state and federal partners are dedicated to protecting children. Predators should know that taking a single illegal picture exploiting a child means at least 15 years in a federal prison. They could also forfeit the computers, cameras, and even the houses that are used to sexually exploit children. We are committed to securing restitution for the victims to pay for the cost of medical care, counseling, and potential loss of income,” said U.S. Attorney Patrick Miles, Jr.
“Today’s significant sentencing marks an end to a case that tore at the very fabric of this community,” said Marlon Miller, Special Agent in Charge, HSI Detroit. “While no amount of jail time can adequately punish individuals involved in this type of depraved activity, my sincere hope is that the conclusion of this case can begin the healing process for all of those affected.”
The investigation was conducted by HSI, in cooperation with the Michigan State Police ICAC, Battle Creek Police Department, Kalamazoo Department of Public Safety, and Kent County Sheriff’s Department. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the federal case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Former Insurance Company Employee to Serve Two Years in Prison and Pay over $168,000 in Restitution for Forging Checks and Filing False Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – CARLA JO MIRES, of Oklahoma City, was sentenced today by United States District Judge Joe Heaton to serve 24 months in federal prison for embezzling money from her employer by forging checks and for filing a false tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Mires was also ordered to pay $168,386.89 in restitution to the IRS and the victims of her embezzlement scheme.
Mires worked for Union Mutual Insurance Company in the accounting office. She was charged with forging a check from Union Mutual that went to Mires’ personal account. Mires also filed a false tax return for 2008 by failing to report as income the money she had embezzled from her employer. Mires was charged by information on August 14, 2014. She pled guilty on September 3, 2014, and agreed to pay restitution to the IRS and for all the losses sustained by the victims relates to her embezzlement scheme. At the sentencing hearing, Judge Heaton ordered Mires to serve three years of supervised release after she completes her 24-month prison term. She was ordered to report to the Bureau of Prisons on January 13, 2015, to begin serving her prison sentence.
This case is the result of a joint investigation conducted by Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Travis D. Smith.
- Former High School Teacher Sentenced for Possession Child Pornography
Former Glen Burnie Man Indicted on Robbery and Gun Charges in Connection with the August Robbery of an Exxon Gas StationRead the Press Release
Store Employee Shot and Killed During the Robbery
Baltimore, Maryland - A federal grand jury today has indicted Robin Tyrone Smith, age 26, formerly of Glen Burnie, Maryland, on robbery and gun charges related to the armed robbery of an Exxon Station convenience store on August 7, 2014.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Tim Altomare; and Anne Arundel County State’s Attorney Anne Colt Leitess.
“Partnerships led to this indictment, and we will continue to work together to hold accountable anyone who participated in this heinous act,” said Anne Arundel County Police Chief Timothy J. Altomare. “Hopefully, this sends a strong message to bad guys out there that we will form partnerships and utilize whatever resources are necessary to ensure that we bring about justice.”
According to the indictment and court documents the Exxon Station convenience store located at 7898 Ridge Road in Hanover, Maryland was robbed on August 7, 2014. The robber, who was captured on video surveillance, was armed with a gun and shot the store clerk during the robbery. The store clerk died at the scene. The indictment alleges that Smith is the person who committed the robbery of the Exxon and shot the employee.
According to court documents, investigators learned that the day before the Exxon robbery, a burglary occurred at an apartment located across the street from Smith’s residence. Items taken during the burglary included a .45 caliber Springfield Armory XD 45 firearm, .45 caliber hollow point ammunition, an X-box gaming system and games for the system. A review of the Exxon video established that the gun used in the robbery was the same model as was stolen in the apartment burglary the day before. Some of the stolen X-box games were pawned at a store located in the Arundel Mills Mall by an individual providing a Maryland State Identification card in the name of Robin Tyrone Smith. Video surveillance from the store shows a male wearing the same clothing as the person who committed the Exxon robbery. The investigation is continuing.
Smith faces a maximum sentence of 20 years in prison for the robbery; and life in prison for brandishing and discharging a firearm during a crime of violence. An initial appearance in U.S. District Court in Baltimore has not yet been scheduled. Smith remains detained on related state charges.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.United States Attorney Rod J. Rosenstein praised the FBI, Anne Arundel County Police Department, and Anne Arundel State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.
Florida Man Sentenced to 37 Months in Prison for $433,000 FraudRead the Press Release
SAN FRANCISCO – Yesterday, Leigh Farrington Fiske was sentenced to 37 months in prison and ordered to pay restitution for a fraud scheme he perpetrated against small business owners and others seeking lines of credit around the nation, announced United States Attorney Melinda Haag, Special Inspector General for the Troubled Asset Relief Program Christy Romero, and FBI Special Agent in Charge David J. Johnson.
Fiske pleaded guilty on June 11, 2014. According to the Plea Agreement, Fiske and his partner, Michael Ramdat, operated a business referred to as “Corporate Funding Solutions.” The purported purpose of this business was to obtain credit lines for customers in exchange for a fee. Fiske’s role was to solicit customers, which he generally did over the Internet and by word of mouth. In reality, neither Fiske nor Ramdat ever intended to provide any services to their customers. Instead, they accepted approximately $433,000 from approximately 30 victims and never helped any of these victims obtain credit. Fiske admitted that he kept $102,000 of these payments for himself, and that he passed the remainder on to Ramdat.
Fiske, 51, of Tampa, Fla., was indicted by a federal grand jury on Nov. 21, 2013, on five counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy, in violation of 18 U.S.C. § 1349. Fiske pleaded guilty to all of the wire fraud counts. Pursuant to the Plea Agreement, the government dismissed the conspiracy charge at sentencing.
The sentence was handed down by the Honorable Edward M. Chen, United States District Court Judge. Judge Chen also sentenced the defendant to a three year period of supervised release and restitution. The defendant will begin serving the sentence on March 31, 2015. Ramdat is scheduled to be sentenced on Dec. 17, 2014 before Judge Chen.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Mary Mallory and Jessica Meegan. The prosecution is the result of an investigation by the Office of the Special Inspector General for the Troubled Asset Relief Program and the FBI.
Festus Man Found Guilty of Mailing Threatening CommunicationsRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that William J. Mabie, 56, of Festus, Missouri, was found guilty today in federal district court in East St. Louis of three counts of Mailing Threatening Communications.
The Indictment in the case alleged that Mabie, who had been previously convicted of similar crimes in the Eastern District of Missouri, mailed three threatening letters to persons within the Southern District of Illinois. Mabie wrote two of the threatening letters in 2012 while he was incarcerated at the U.S. Penitentiary in Lompoc, California; he wrote the third threatening letter while he was incarcerated at the U.S. Penitentiary in Florence, Colorado.
Sentencing has been set for April 3, 2015, at 9:00 A.M. before Chief Judge Michael J. Reagan. The maximum penalties that can be imposed for each count of the Indictment are up to five years in prison, a $250,000 fine, or both, and three years’ supervised release.
The case was prosecuted by Assistant U.S. Attorney Stephen Clark and Special Assistant United States Attorney Jonathan Drucker. The case was investigated by the United States Postal Service.
Eleven People Charged in Takedown of Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – Federal, state and local law enforcement authorities arrested eight people this morning in connection with a ring that allegedly trafficked heroin, powder cocaine and crack cocaine in the Atlantic City area, U.S. Attorney Paul J. Fishman announced.
In pre-dawn raids, agents and officers of the FBI, Drug Enforcement Administration, the Atlantic County Prosecutor’s Office, N.J. State Police and Atlantic City Police Department arrested eight people, seven of whom were charged by indictment with drug trafficking conspiracy; one of those defendants, Toye Tutis, is also charged with one count of money laundering along with Jazmin S. Vega, who is charged only with a single count of money laundering.
A ninth defendant is already in custody on other charges in Pennsylvania and two more defendants are being sought in California.
The defendants arrested in New Jersey today are scheduled to make their initial court appearance this afternoon before U.S. Magistrate Judge Ann Marie Donio in Camden federal court.
According to documents filed in this case and statements made in court:
The defendants are allegedly members of a drug trafficking organization that dealt in large quantities of heroin, powder cocaine, and crack cocaine in and around Atlantic City. All but one of the defendants (see chart below) are charged with a single count of conspiracy to distribute more than five kilograms of cocaine, more than 280 grams of crack cocaine, and more than one kilogram of heroin.
The conspiracy count carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The count of money laundering carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI’s Newark Division, Atlantic City Resident Agency, under the direction of Special Agent in Charge Aaron T. Ford; the DEA’s Newark Division, under the direction of Special Agent in Charge Carl J. Kotowski; the Atlantic County Prosecutor’s Office, under the direction of Prosecutor James P. McClain; and the Atlantic City Police Department, under the direction of Police Chief Henry Wright, with the investigation leading to today’s arrests.
He also thanked the N.J. State Police; the Atlantic County Sheriff’s Office; the Bureau of Alcohol, Tobacco and Firearms; U.S. Immigration and Customs Enforcement (ICE)-Homeland Security Investigation (HSI); U.S. Postal Inspection Service; Cumberland County Sheriff’s Office and the Ventnor, Northfield and Millville police departments for their assistance.
The government is represented by Assistant U.S. Attorney Diana V. Carrig of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the indictment are merely accusations and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS
Name
Age
Residence
42
Pleasantville, New Jersey
Kareem A. Taylor
39
Atlantic City, New Jersey
Ivan Joel Cuellar-Naranjo*
28
Los Angeles, California
Francisco Alberto Rascon-Muracami
21
Lancaster County Prison, Pennsylvania
Phillip C. Horton*
49
Inglewood, California
Tozine N. Tiller
40
Absecon, New Jersey
Talib N. Tiller
32
Pleasantville
Kabaka Atiba
43
Atlantic City
Ronald D. Byrd
49
Pleasantville
John Wellman
39
Atlantic City
Jazmin S. Vega
40
Pleasantville
*Not in custody
14-435
Tutis, Toye et al., Indictment