Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 21 October 2014
Chesapeake Woman Sentenced to 15 Years for Her Role in Conspiracy to Produce Child PornographyRead the Press Release
NORFOLK, Va. – Shaniesta Kenay Banks, 22, of Chesapeake, Virginia, was sentenced today to 15 years in prison, followed by lifetime supervised release, for production of child pornography.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Clark Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Banks pleaded guilty on December 11, 2013. According to court documents, Banks became involved in the conspiracy when she was contacted by coconspirator Robert Harold Scott, Jr. under his assumed online identity of “Mike Pyro.” Scott would routinely communicate with women in and around the Tidewater area to set up “sex parties,” where the women would work as prostitutes and Scott would pay them for their services. In reality, Scott would not pay them and, at times, extort the women by threatening to publish sexually explicit videos. In addition to the adult parties, Scott was found to be conspiring with and producing child pornography with several different women, including Banks. Law enforcement found that, when discussing the sex parties, sometimes Scott would request these women to produce child pornography and was very specific as to the sex acts he wanted done on camera. Banks complied in return for the promise of money. Specifically, Banks produced child pornography with a 4 year old child.
This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:14-cr-164.
California Man who was Supplying Pure Methamphetamine to Reno, Nev. Area Sentenced to 19½ Years in PrisonRead the Press Release
RENO, Nev. - A man who supervised and directed an illegal drug distribution operation in Reno from his home in southern California, was sentenced on Monday, Oct. 20, to 19½ years in federal prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden, for the District of Nevada.
Rosendo Salgado, 42, of Montclair, Calif., who was convicted by a jury on July 18 of one count of conspiracy to distribute methamphetamine, one count of money laundering conspiracy, and one count of illegal use of a communication facility, was sentenced by U.S. District Judge Larry R. Hicks.
“This defendant was no amateur drug trafficker and made a personal choice to engage in the trafficking of large amounts of almost pure methamphetamine over an extended period of time,” said U.S. Attorney Bogden. “He showed his leadership of, experience and command of the conspiracy by using lower-ranking members to make hand-to-hand sales and use of coded language to track sales.”
According to court records and evidence admitted at trial, beginning in January 2013 pursuant to a court authorized wiretap, law enforcement officials intercepted telephone calls of Salgado discussing the methamphetamine distribution operation in the Reno area with co-conspirators. The investigation continued, with Salgado observed meeting his co-conspirators in Reno. On May 12, 2013, officials discovered from additional intercepted telephone calls of Salgado’s telephone, that a supply of methamphetamine from Salgado would be arriving that day in Reno via a vehicle courier, with the drugs secreted in the back door of the vehicle. Investigators conducted surveillance outside the Reno home where the methamphetamine was delivered, and observed two co-conspirators removing a panel from the back passenger door of a white Toyota bearing California license plates. That evening, investigators executed a federal search warrant at the home and recovered a firearm and two pounds of pure methamphetamine. Two days later, Salgado was arrested and charged by federal criminal complaint in California.
At sentencing, the court found that Salgado was an organizer, leader, manager or supervisor of the methamphetamine distribution conspiracy based upon the evidence, including intercepted calls, revealing Salgado’s instruction to his co-conspirators on a number of operational matters, including how to locate the concealed drugs that had been delivered to them, how much to sell the drugs for, where to deposit the drug proceeds, and how to use coded language to keep tallies of sales. The co-conspirators who resided in Reno were prosecuted and convicted by the Washoe County District Attorney’s Office.
The case was prosecuted by Assistant U.S. Attorneys James E. Keller and Megan M. Rachow and investigated by the DEA, Northern Nevada High Intensity Drug Trafficking Area (HIDTA) Task Force, and Washoe County Sheriff’s Department.
Braddock Hills Bar & Grill Owner Pleads Guilty to Income Tax EvasionRead the Press Release
PITTSBURGH - A resident of North Braddock, Pa., pleaded guilty in federal court to a charge of income tax evasion, United States Attorney David J. Hickton announced today.
Thomas G. Foglia pleaded guilty to one count before United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that Foglia, the proprietor of Foli’s Place, admitted to keeping two sets of books for the purpose of understating his income on tax returns. This led to a total tax loss, due to false Forms 1040 filed by Foglia for the years 2005 through 2009, of $193,518.
Judge Diamond scheduled sentencing for Feb. 18, 2015 at 11 a.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court released Foglia on bond.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Internal Revenue Service - Criminal Investigation, conducted the investigation that led to the prosecution of Foglia.
Boulder Man Sentenced to Federal Prison for Failing to Register as A Sex OffenderRead the Press Release
DENVER – Douglas Wayne Delling, age 53, of Boulder, Colorado, was sentenced last week by U.S. District Court Judge Robert E. Blackburn to serve 41 months in federal prison for failure to register as a sex offender, U.S. Attorney John Walsh and U.S. Marshal John Kammerzell announced. Following his prison sentence, Judge Blackburn ordered Delling to spend 15 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Delling was first charged by Criminal Complaint on January 30, 2014. He was indicted by a federal grand jury in Denver on February 10, 2014. He entered a guilty plea to the indicted charge, failing to register as a sex offender, on July 8, 2014. He was sentenced on October 16, 2014.
According to court documents, including the stipulated facts contained in the plea agreement, beginning on March 10, 2008, in the state of Arkansas, Delling was required to register under the Sex Offender Registration and Notification Act, as he was a sex offender. Delling subsequently moved to Colorado without notifying law enforcement officers. When a verification check was conducted by law enforcement officers in Arkansas, they determined that the defendant no longer resided at his registered address. A non-extraditable warrant was issued, and the U.S. Marshal’s Service in Arkansas launched a fugitive investigation.
During the subsequent investigation, the U.S. Marshal’s Service obtained a current telephone number for the defendant. Delling was contacted by phone on October 21, 2013, and informed agents that when he first moved to Colorado he lived in a camp ground in Nederland, Colorado, and worked in Boulder, Colorado. At the time he was contacted, he stated that he was currently living at a homeless shelter in Boulder, and that he knew he needed to register yet had not because he did not want to go to jail. Delling was informed that he needed to register in Colorado.
Delling was arrested nine days later on October 20, 2013, after neither registering in Colorado nor changing his registration in Arkansas. Records show that Delling had resided in Colorado from at least September 23, 2013 to October 30, 2013. The defendant had been employed with a “Ready to Work” program in Colorado, with which he had falsely reported “no” to questions of “have you been in jail or prison” and “Convicted of a Sex Offense”. The defendant said that he knew he had to register as a sex offender in Colorado but feared being arrested if he registered.
“Sex offenders are required to register in the communities they reside in so that local law enforcement and area residents are aware of their presence,” said U.S. Attorney John Walsh. “When a sex offender fails to register, no matter the excuse, that person is violating the law by not notifying the authorities or their neighbors of their residence and prior sex conviction.”
“I am extremely proud of the work of our deputy marshals on this case,” said U.S. Marshal John L. Kammerzell. “As an agency, we take these cases very seriously with the safety of the community as our highest priority.”
This case was investigated by the U.S. Marshals Service.
Delling was prosecuted by Assistant U.S. Attorney David Tonini.
2014 Eastern District Election Officer AppointedRead the Press Release
United States Attorney Thomas G. Walker announced today that Assistant United States Attorney (AUSA) Dennis M. Duffy will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Duffy has been appointed to serve as the District Election Officer (DEO) for the Eastern District of North Carolina, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Walker said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Walker stated that AUSA/DEO Duffy will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number 919-856-4847.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 919-380-4500.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Walker said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Monday 20 October 2014
White Plains Area Man Sentenced to 151 Months Federal PrisonRead the Press Release
Man sentenced to federal prison for distributing cocaine in North Country
PLATTSBURGH, NEW YORK – On October 16, 2014, ROBERTO DELGADO, 35, of Ossining, New York was sentenced to 151 months in federal prison by United States District Court Judge Glenn Suddaby in Syracuse, New York announced United States Attorney Richard S. Hartunian and Drug Enforcement Administration Acting Special Agent in Charge James J. Hunt.
United States Attorney Hartunian said, “Keeping the supply of illegal drugs out of our communities is essential. We praise the work of our partner law enforcement agencies.”
“This sentencing is a result of collaboration between law enforcement to identify, investigate and arrest those responsible for supplying cocaine to our communities,” said DEA Acting Special Agent in Charge Hunt.
In March 2013, Delgado pled guilty to conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine in the Northern District of New York, specifically in the Lake Placid area.
The sentence also includes a $15,000 fine, an eight year term of supervised release after the defendant completes his 151 month term of imprisonment, and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration, New York State Police, and Lake Placid Police Department, the Saranac Lake Police Department, the Plattsburgh Police Department, the Clinton County Sheriff’s Office, the Franklin County District Attorney’s Office, and the Essex County District Attorney’s Office. Assistant United States Attorney Katherine Kopita prosecuted the case.
West Virginia Couple Guilty of Stealing from Elderly Victim to Purchase Beach HouseRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A Wetzel County couple was convicted in federal court of stealing nearly $400,000.00 from a 90-year-old victim in order to purchase a vacation home in the Outer Banks, United States Attorney William J. Ihlenfeld, II, announced today.
Following a 3 day trial, Timothy Summers, 67, and Lea Ann Summers, 52, of Proctor, West Virginia, were found guilty of one count of conspiracy to commit mail fraud, four counts of mail fraud, one count of securities fraud, and one count of interstate transportation of stolen property.
Evidence presented at trial showed that the couple collaborated to liquidate a significant portion of the victim’s investment holdings in PPG Industries stock. In late 2013, Lea Ann Summers called the stock holding company, Computershare, impersonating the victim, and sold 2,175 shares of PPG Industries stock.
Mrs. Summers then arranged for the proceeds of the sale, approximately $397,030.15, to be sent to herself rather than the victim. Timothy Summers deposited the proceeds and transferred the money into a bank account which he shared only with his wife. The couple then travelled to North Carolina and purchased a beach house in the Outer Banks for $243,173.61.
The couple faces up to 20 years in prison for each of the five mail fraud counts, up to 20 years in prison for the securities fraud count, and up to 10 years in prison for the interstate transportation of stolen property count. They also face a fine of up to $250,000 for each of the seven counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorneys David Perri and Michael Stein prosecuted the case on behalf of the government. The Federal Bureau of Investigation led the investigation.
Chief U.S. District Judge John Preston Bailey presided.
Washington County Man Pleads Guilty in Money Laundering SchemeRead the Press Release
PITTSBURGH - A Monessen resident has pleaded guilty in federal court to charges of money laundering, United States Attorney David J. Hickton announced today.
Steven Mensah Yawson, 37, pleaded guilty to 10 counts before United States District Judge Gustave Diamond.
In connection with the guilty plea, in 2012, Yawson conspired with others to steal identities which were later used to open credit cards and to purchase merchandise and gift cards in Western Pennsylvania. Yawson wired proceeds from the fraud to an individual in Accra, Ghana.
Judge Diamond scheduled the sentencing for Feb. 18, 2015 at 10 a.m. The law provides for a maximum total sentence of not more than 20 years in prison and $500,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted this investigation. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Virginia Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A MinorRead the Press Release
WASHINGTON – Michael Angel Gutierrez, 50, of Lorton, Va., pled guilty today to a federal charge of traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Gutierrez entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable James E. Boasberg scheduled sentencing for Jan. 8, 2015. Gutierrez faces a maximum sentence of 30 years in prison and a potential fine of up to $250,000.
According to the government's evidence, on Aug. 28, 2014, Gutierrez contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Gutierrez engaged in e-mail, phone, and text message conversations with the undercover officer, whom the defendant believed was the father of an under-aged girl. During this period of time, Gutierrez arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On Sept. 3, 2014, Gutierrez traveled from his apartment in Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought was part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
14-234Virginia Man Pleads Guilty to Traveling into the District of Columbia to Engage in Illicit Sexual Conduct with A MinorRead the Press Release
WASHINGTON – Michael Angel Gutierrez, 50, of Lorton, Va., pled guilty today to a federal charge of traveling interstate to engage in illicit sexual conduct with a minor, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Gutierrez entered the guilty plea in the U.S. District Court for the District of Columbia. The Honorable James E. Boasberg scheduled sentencing for Jan. 8, 2015. Gutierrez faces a maximum sentence of 30 years in prison and a potential fine of up to $250,000.
According to the government's evidence, on Aug. 28, 2014, Gutierrez contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a social network site. Over the next few days, Gutierrez engaged in e-mail, phone, and text message conversations with the undercover officer, whom the defendant believed was the father of an under-aged girl. During this period of time, Gutierrez arranged with the undercover officer to meet for the purpose of engaging in sexual acts with the child.
On Sept. 3, 2014, Gutierrez traveled from his apartment in Virginia to a pre-arranged meeting place in Washington, D.C. When he arrived at the meeting place, he was arrested.
This case was brought was part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the guilty plea, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended the efforts of Assistant U.S. Attorney Ari Redbord, who is prosecuting the case.
14-234Virginia Executive Indicted for Fraudulently Receiving Confidential Information About VA Construction ProjectsRead the Press Release
A 23-count indictment was filed charging a Virginia executive with providing things of value to the former director of the Cleveland and Dayton Veterans Affairs Medical Center in exchange for confidential information about VA construction projects, law enforcement officials said.
Mark S. Farmer, 54, of Arlington, Virginia was charged with one count of conspiracy to commit mail fraud, wire fraud and theft of government property; two counts of wire fraud; six counts of embezzlement and theft; one count of violating the Hobbs Act and 13 counts of mail fraud.
Farmer was employed at an integrated design firm that performed work for the VA. He worked in several different capacities, including associate principal. The business is identified in the indictment only as “Business 75”.
Farmer and Business 75 received VA records and things of value, including non-public information concerning the VA and streamlined access to public information concerning the VA, which William Montague had embezzled and stolen without authority from the VA. This was done to give Farmer and Business 75 an advantage over other companies in the awarding and administration of VA business.
Montague, the former director of the Cleveland and Dayton Veterans Affairs Medical Center, pleaded guilty earlier this year to 64 counts related to his role in the conspiracy. He is awaiting sentencing.
“Bribing a public official to obtain internal government documents and information for a competitive business advantage is illegal,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI will continue to root out corruption at all levels.”
“Contractors and employees conspiring to defraud the VA is particularly intolerable as the VA struggles to effectively serve our nation's veterans,” said Gavin McClaren, U.S. VA OIG, Resident Agent in Charge, Cleveland.
Farmer asked Montague to obtain information concerning VA contracts and business, including VA records. Montague used his power and influence at the VA to gain access to VA employees in ways that Farmer and Business 75 could not. Montague gave false and misleading information to VA employees about Montague’s reasons for requesting VA records and information, according to the indictment.The case was prosecuted by Assistant United States Attorneys Antoinette T. Bacon following an investigation by the FBI and United States Department of Veterans Affairs – Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.Upshur County Man Conceals Armed Robbery Suspect, Sentenced to Four Months in PrisonRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Dustin Tyler Moore, 24, of Buckhannon, West Virginia, was sentenced to four months in prison after he harbored and concealed a wanted armed robbery suspect, United States Attorney William J. Ihlenfeld, II, announced today.
Moore pled guilty in August 2014 to one count of “Concealing Person from Arrest” after a United States Marshals Service investigation revealed that Moore used his vehicle to transport an armed robbery suspect for whom the Harrison County Sheriff’s Department had obtained a felony arrest warrant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government.
U.S. District Judge Irene M. Keeley presided.
U.S. Attorney Booth Goodwin, Law Enforcment Officials and Treatment Professionals to Announce Law Enforcement Treatment Referral Initiative Arising Out of Recent RoundupRead the Press Release
CHARLESTON, W.Va. –U.S. Attorney Booth Goodwin and various state and local law enforcement officials will discuss recent efforts by law enforcement to refer addicts to treatment at a press conference on Tuesday, October 21, 2014, at 2:00 p.m. at Prestera, PARC East, 1143 Dunbar Avenue in Dunbar, West Virginia.
WHO:
United States Attorney Booth Goodwin
Charles Miller, Chief of Staff, Kanawha County Prosecutor’s Office
Chief Brent Webster, Charleston Police Department
Sheriff John Rutherford, Kanawha County Sheriff’s Department
Eric Johnson, Commander, Metropolitan Drug Enforcement Network Team (MDENT)
Deputy Director Kenny Burner, Appalachia HIDTA
Dana Petroff, Director of Addiction Services, Prestera
Kate Luikart, Regional Director, Prestera
Deputy Secretary James Rubenstein, West Virginia Department of Military Affairs and Public Safety and
Commissioner, West Virginia Division of Corrections
WHERE: Prestera – PARC East
1143 Dunbar Avenue
Dunbar, WV
WHEN: Tuesday, October 21, 2014 at 2:00 p.m.Two Virginia Men Sentenced on Firearms ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Two Virginia men with prior felony convictions were sentenced in federal court for unlawful possession of firearms, United States Attorney William J. Ihlenfeld, II, announced today.
In late 2013, convicted felons Micky Knight Matheson, 34, and Joshua Thomas Smith, 30, both of Winchester, Virginia, pawned four shotguns and a rifle near Martinsburg, West Virginia.
Smith was sentenced to 80 months in prison. He was previously convicted of the felony offense of distribution of cocaine in the Circuit Court for the City of Winchester, Virginia. Matheson was sentenced to 57 months in prison. He was previously convicted of the felony offenses of credit card theft, robbery, conspiracy to commit robbery, forgery, uttering, and credit card fraud in the Circuit Court for the City of Winchester, Virginia.
Smith and Matheson each pled guilty in July 2014 to one count of “Felon in Possession of a Firearm” after an investigation led by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Jarod Douglas prosecuted the cases on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Two Sentenced on Theft, Fraud ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Two Martinsburg area women were sentenced in federal court on theft and fraud charges, United States Attorney William J. Ihlenfeld, II, announced today.
Brenda Carmody, 49, of Bunker Hill, West Virginia, was sentenced to three years of probation and a $500.00 fine after she stole more than $2,000.00 while employed at the Rippon, WV Post Office. Carmody pled guilty to one count of “Misappropriation of Postal Funds” in July 2014 after a United States Postal Inspection Service investigation revealed that she stole monies from a cash drawer and post office box rental fees totaling $2,031.91.
Martina Roberts, 41, of Martinsburg, was sentenced to two years of probation after she filed for personal bankruptcy and subsequently forged the bankruptcy trustee’s signature to authorize a line of credit to purchase a new car. Roberts pled guilty to one count of “Bankruptcy Fraud – Falsification of Documents” in July 2014.
Assistant U.S. Attorney David Perri prosecuted Carmody and Assistant U.S. Attorney Andrew Cogar prosecuted Roberts on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Two Sentenced for Drug TraffickingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Two Martinsburg area men were sentenced in federal court on drug trafficking charges, United States Attorney William J. Ihlenfeld, II, announced today.
Delmar Hoza Curry, 33, of Martinsburg, West Virginia, was sentenced to 10 months in prison and six months of supervised release, for possession with intent to distribute crack cocaine. Curry pled guilty in July 2014 to one count of “Possession with Intent to Distribute Cocaine Base” following an investigation led by the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative.
John Earl Mitchell, 29, of Harper’s Ferry, West Virginia, was sentenced to time served since June 2014 and five years of supervised release for his role in distributing crack cocaine and Methylone, an amphetamine, near Martinsburg, West Virginia. Mitchell pled guilty in July 2014 to one count of “Drug Conspiracy” after an investigation led by the Martinsburg Police Department.
Assistant U.S. Attorney Jarod Douglas prosecuted the cases on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Two Sentenced for Conspiring to Grow MarijuanaRead the Press Release
ERIE, Pa. - A resident of Frewsburg, New York and a resident of Randolph, New York, have been sentenced in federal court to on their conviction of violating federal drug laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed a sentence of time served and a $2,000 fine on William Kamholtz, 59, of Frewsburg, New York and a sentence of 1 day in jail, 9 months home detention and a $3,000 fine on James Leach, 62, of Randolph, New York.
According to information presented to the court, Kamholtz and Leach conspired to manufacture and possessed with intent to distribute marijuana plants.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Forest Service Law Enforcement and Investigations, the McKean County Drug Task Force, the Southern Tier Drug Task Force, the Cattaraugus County Drug Task Force and the United States Drug Enforcement Administration for the investigation leading to the successful prosecution of Kamholtz and Leach.
Two Newark, N.J. Men Plead Guilty to Smuggling Marijuana and Cell Phones into Federal Detention FacilityRead the Press Release
TRENTON, N.J. – Two Newark men today admitted their involvement in a scheme to smuggle contraband, including marijuana and cell phones, into the Essex County Jail, a federal pretrial detention facility, U.S. Attorney Paul J. Fishman announced.
Darsell Davis, 29, pleaded guilty before U.S. District Judge Mary L. Cooper to an information charging him with one count of conspiring with others to commit extortion under color of official right. Dwayne Harper, 30, pleaded guilty before Judge Cooper to an information charging him with one count of conspiring to smuggle contraband into the Essex County Jail. Davis has been released on bail and Harper remains in custody.
According to the documents filed in this case and other cases and statements made in court:
On multiple occasions between September 2013 and May 2014, Stephon Solomon, 26, a corrections officer at the Essex County Jail, smuggled contraband – including cell phones, tobacco, and marijuana – to Quasim Nichols, 29, a federal pretrial detainee at the Essex County Jail, in exchange for cash bribes. Davis and Harper aided the smuggling scheme by collecting the contraband to be smuggled into the jail. After receiving contraband and cash bribes from Davis, Solomon smuggled the contraband to Nichols, who ultimately sold some of the marijuana and cell phones to other inmates. The inmates purchased the contraband by having friends and family send Western Union money transfers to Nichols, who then enlisted Davis and others to retrieve those payments for him. Davis obtained at least $4,300 in Western Union payments over the course of the conspiracy.
Charges against Nichols are still pending. The charges and allegations against Nichols are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Solomon pleaded guilty on Oct. 1, 2014, to one count of conspiring to commit extortion under color of official right and awaits sentencing on Jan. 21, 2015. He has been released on bail.
The charge of conspiring to commit extortion under color of official right, to which Davis pleaded guilty, carries a maximum potential penalty of 20 years in prison and a maximum fine of $250,000. Davis also will forfeit $4,300, consisting of his proceeds from the conspiracy. The charge of conspiring to provide contraband, including marijuana, to inmates at the Essex County Jail, to which Harper pleaded guilty, carries a maximum potential penalty of five years in prison and a maximum fine of $250,000.
Davis and Harper are set to be sentenced before Judge Cooper on Feb. 11, 2015, and Feb. 4, 2015, respectively.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and investigators with the Internal Affairs Division of the Essex County Jail, under the leadership of Warden Roy Hendricks, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Robert Frazer of the Criminal Division, Organized Crime/Gangs Unit, in Newark.
14-380
Defense counsel:
Davis: Maria Noto Esq., Matawan, N.J.
Dwayne Harper: Michael Pedicini Esq., Morristown, N.J.Davis, Darsell Information
Harper, Dwayne InformationTwo FCI Morgantown Inmates Convicted of Possessing ContrabandRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Two inmates at the Federal Correctional Institute, Morgantown were convicted and sentenced in federal court for possession of prohibited objects, United States Attorney William J. Ihlenfeld, II, announced today.
James Robinson, 42, pled guilty today to one count of “Possession of a Prohibited Object” after he was discovered in possession of marijuana while incarcerated at FCI Morgantown. Robinson was sentenced to an additional four months in prison.
Dominick Jordan, 34, pled guilty today to one count of “Possession of a Prohibited Object” after he was discovered in possession of a cell phone while incarcerated at FCI Morgantown. Jordan was sentenced to an additional three months in prison.
Assistant U.S. Attorney Shawn Morgan prosecuted the cases on behalf of the government. Both cases were investigated by the Federal Bureau of Prisons and the Special Investigative Services Unit at FCI Morgantown.
U.S. Magistrate Judge John S. Kaull presided in the Jordan case. U.S. District Judge Irene M. Keeley presided in the Robinson case.
- Tomball Man Gets 30-Year Sentence for Producing/Distributing Child Pornography
Todd County, Kentucky, Man Guilty of Coercing Minors to Engage in Sexually Explicit Conduct and Receiving Child PornographyRead the Press Release
BOWLING GREEN, Ky. – A Todd County, Kentucky man pleaded guilty today, in U.S. District Court to charges of persuading, inducing and coercing two minor females to engage in sexually explicit conduct and with receiving child pornography announced David J. Hale, United States Attorney for the Western District of Kentucky.
Jesse Sanford Williams, age 34, pleaded guilty to all three counts of the indictment before U.S. Magistrate Judge H. Brent Brennenstuhl in Bowling Green. Williams was arrested on March 7, 2014, by federal agents in Kentucky, following an investigation that began in the state of Washington on March 28, 2013. In court, Williams admitted to blackmailing, by threat, at least two minor, teen girls, in order to receive sexually explicit images of them, by means of multiple Gmail and Yahoo internet accounts. The activities took place between June 2011 and March 2013. Victim-1 lived in Washington, and was 13 years of age at the onset of the Internet threats. Victim-2 lived in Todd County, and was approximately the same age. At all times, Williams concealed his age and identity from the victims. A subpoena of email accounts determined all email accounts shared the same Internet Protocol (IP) address from an account located at Logan Aluminum, a large manufacturing facility located near Russellville, Kentucky. The FBI was able to identify Williams from shift schedules, IP login times and other materials obtained in the investigation. Further, Williams admitted to knowingly receiving child pornography between June 2011 and March 2013.
If convicted at trial, Williams faced a combined sentence of at least 15 years, but no more than 80 years in prison, a fine of $750,000 and a term of supervised release including up to life. Williams is scheduled for sentencing before Senior Judge Thomas B. Russell on February 4, 2015, in Bowling Green.
This case is being prosecuted by Assistant United States Attorney Marisa Ford and is being investigated by the Federal Bureau of Investigation (FBI) Louisville and Seattle Divisions and police in Washington State.
Three Missouri Men Plead Guilty to Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that three Missouri men pleaded guilty in federal court today, in separate and unrelated cases, to charges involving child pornography.
USA v. Allison
Larry Allison, 50, of Weaubleau, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to using a minor to produce child pornography.
By pleading guilty, Allison admitted that he used a minor, identified in the federal indictment as “Jane Doe,” to produce child pornography in January 2014.
Under federal statutes, Allison is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution to his victim. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department, the Hickory County, Mo., Sheriff’s Department and the FBI.
USA v. Kern
Paul D. Kern, 22, of Republic, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to possessing child pornography.
According to today’s plea agreement, Kern contacted the Republic, Mo., Police Department on Nov. 1, 2012, to report that he had just received a warning pop-up on his computer ostensibly generated by the FBI while he was visiting a Web site featuring child pornography. He brought his computer to the police station and investigators conducted a forensic preview of the computer that located several images of child pornography.
Kern’s computer contained 55 images and five videos of child pornography. Kern admitted that he had been viewing child pornography for over six months.
Under the terms of today’s plea agreement, the government will not seek a sentence greater than five years in federal prison without parole; Kern will not seek a sentence less than two years in federal prison without parole. Kern is also subject to a fine up to $250,000 and an order of restitution to his victims. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Republic, Mo., Police Department.
USA v. May
Christopher May, 29, of Fair Grove, Mo., pleaded guilty before U.S. District Judge M. Douglas Harpool to receiving and distributing child pornography over the Internet between Nov. 29, 2012, and March 26, 2013.
Under federal statutes, May is subject to a mandatory sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Nixa, Mo., Police Department, the Fair Grove, Mo., Police Department, and U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Thornton Woman Pleads Guilty and Aiding and Assisting in the Preparation of False Tax ReturnsRead the Press Release
DENVER – Geraldine Juanita Sotelo, age 64, of Thornton, Colorado, pled guilty last week before U.S. District Court Judge R. Brooke Jackson to aiding and assisting in the preparation of false tax returns, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Judge Jackson is scheduled to sentence Sotelo on January 26, 2015. Sotelo was indicted by a federal grand jury in Denver on January 28, 2014.
According to information contained in the plea and indictment, Sotelo began preparing and filing tax returns for clients around 1999 under the name J&G Bilingual Services in Thornton, Colorado. Sotelo was a co-owner and the manager of the business. J&G Bilingual Services typically followed a set procedure in preparing a tax return for a client. The client would come into J&G's office, met with one of Sotelo's employees, and provided information about his or her income and expenses. The J&G employee entered the information into a computer, and a software program generated a draft of the client's tax return. The draft then was reviewed by Sotelo.
For tax returns during the years 2007, 2008, and 2009, Sotelo would make changes to draft returns during her reviews or directed her employees to make change which often included increased charitable contributions, unreimbursed employee expenses, personal property taxes, and other itemized deductions without discussing the changes with the clients. Each of the twenty-six returns mentioned in the Indictment requested a refund, in amounts ranging from $1,282 to $7,140, and each was false in more than one respect. On Schedule A of all twenty-six returns were false itemized deductions, overstating the amount clients paid in personal property taxes and the amounts of their gifts to charities. All but two schedules misstated unreimbursed employee expenses and two schedules falsified medical and dental expenses.
Seven of the twenty-six returns misrepresented that taxpayers were eligible for credits for child and dependent care expenses. To support the claim for child and dependent care expenses each return included Form 2441, which listed the care provider's name, SSN and the amount the taxpayer paid to the provider during the tax year. When Sotelo and her employees, acting at her direction, falsified that information, they sometimes consulted what they called the "baby sitter list." The list contained information under three column headings: (1) "NAME," (2) "BABY SITTER SSN/ EIN," and (3) "ZIP CODE." At an employee meeting during the relevant time, Sotelo announced that J&G had to stop using the baby sitter list because "the IRS is catching on."
The tax loss resulting from the false entries on the twenty-six returns was $71,978. In April 2010, two IRS special agents interviewed Sotelo, who at first claimed that all of the information on J&G-prepared returns came from the clients and the returns did not contain false entries. When one of the agents told her that her statements were not consistent with what the IRS had learned, Sotelo admitted that she did "fudge" numbers on her clients' returns.
Sotelo pled guilty to one count of aiding and assisting in the preparation of false tax return, which carries a penalty of not more than 3 years in federal prison, and a fine of up to $100,000.
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service and prosecuted by the Economic Crime Section of the U.S. Attorney’s Office’s Criminal Division.
Thermacore, Inc., Agrees to Pay $965,000 to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA - Thermacore, Inc. (“Thermacore”) has agreed to a $965,000.00 settlement to resolve allegations of fraud arising as part of the Federal government’s Small Business Innovation Research (“SBIR”) program. According to the United States, Thermacore is responsible for duplicate SBIR awards submissions. The United States contends that these submissions, and the attendant certifications, constituted false statements to the Federal government. The settlement was announced today by First Assistant United States Attorney Louis Lappen. Thermacore denies the allegations.
Thermacore acquired k Technology Corporation (“kTC”) on August 7, 2009. Through the SBIR program, kTC had submitted a project proposal to the National Aeronautics and Space Administration (“NASA”), on September 4, 2008, and submitted a duplicate proposal to the United States Air Force (“Air Force”) on September 24, 2008. Through the SBIR program, the agencies provide small businesses with incentives to profit from the commercialization of technology that would benefit the Federal government.
The SBIR program has requirements aimed to combat fraud, waste, and abuse. As part of these requirements, both NASA and the Air Force mandate that the same or essentially equivalent research may not be funded by more than one agency and that submissions under the SBIR Program must be certified as being non-duplicative. Under the SBIR Program, therefore, it is unlawful to receive funding for essentially equivalent work already funded under any government program or to falsely certify that work is non-duplicative.
The investigation was prompted by NASA’s proactive initiative to identify potential fraud in its SBIR contracts. “The proactive efforts of agencies like NASA are critical to identifying potential fraud and safeguarding limited government resources,” said Lappen.
Since its enactment in 1982, as part of the Small Business Innovation Development Act, SBIR has helped thousands of small businesses to compete for federal research and development awards which have enhanced the nation’s defense.
Under the parties’ settlement agreement, Thermacore will pay $500,000 to the United States. An additional $465,000.00 will be allocated and used for ongoing compliance efforts by Thermacore. Thermacore has already initiated an upgrade to its Ethics and Compliance Program which efforts are continuing.
The investigation was conducted by NASA, the Air Force, and the Department of Defense. The case is being handled by Assistant U.S. Attorney Veronica J. Finkelstein and auditor Lawrence M. Kutys.
Click here to view the settlement agreement.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Terlingua Woman Sentenced to Maximum Ten Years in Federal Prison for Collecting Deceased Father's Social Security BenefitsRead the Press Release
In Pecos on Friday, United States District Judge Robert A. Junell sentenced a 49-year-old Terlingua, TX, woman to the statutory maximum of ten years in federal prison for stealing over $245,000 in Social Security benefits paid to her deceased father announced Robert Pitman, United States Attorney.
In addition to the prison term, Judge Junell ordered Judith Maria Broughton to pay restitution to the federal government in the amount of $245,226 and be placed under supervised release for a period of three years after completing her prison term.
On July 3, 2014, Broughton pleaded guilty to a one count Information charging her with willfully and knowingly stealing Social Security Administration Retirement Insurance Benefits. By pleading guilty, Broughton admitted that she forged her father’s signature causing SSA benefits paid in the name of her father, Luther D. Broughton, to be electronically deposited into a joint checking account. From June 1990 to August 2011, she collected the funds deposited into the account even after his death. Broughton further admitted to converting those monies to her own personal use.
According to court records, Luther Broughton died in June 1990 and the defendant leased a storage unit in Lexington, KY, to conceal his death. A search of the storage unit on January 8, 2014, revealed the mummified remains of Luther D. Broughton as well as his personal belongings including an automobile. Also, the defendant’s mother, Mary Elizabeth Broughton’s, Social Security benefits were being electronically deposited into a joint checking account with the defendant. Mary Elizabeth Broughton’s whereabouts have not been determined and her SSA benefits have been suspended.
This case was investigated by special agents with the Social Security Administration-Office of Inspector General with assistance from the Brewster County Sheriff's Office and law enforcment in Lexington, KY. Assistant United States Attorney James J. Miller, Jr. prosecuted this case on behalf of the Government.
- Tax Preparation Business Owner Sentenced for Tax Fraud
Suburban Dermatologist Convicted of Cheating Medicare and Private Insurers of $2.6 Million in Health Care Fraud SchemeRead the Press Release
CHICAGO — A dermatologist in west suburban Lombard was convicted today of defrauding Medicare and private health insurers by submitting false claims for more than 800 patients resulting in losses totaling more than $2.6 million. The defendant, DR. ROBERT KOLBUSZ, falsely diagnosed patients with actinic keratosis, or sun-induced skin lesions that have potential to become cancerous, and then billed public and private health insurers for treatments that were ineffective and falsely documented.
Kolbusz, 57, of Oak Brook, owns and operates the Center for Dermatology and Skin Cancer, Ltd., in Lombard and formerly located in Downers Grove. He was found guilty of three counts of wire fraud and three counts of mail fraud by a jury that began deliberating on Friday after a four-week trial in U.S. District Court.
Kolbusz remains free on bond pending sentencing, which was scheduled for Feb. 13, 2015, by U.S. District Judge John Z. Lee. Kolbusz faces a maximum penalty of 20 years in prison and a $250,000 fine on each count, or an alternate fine totaling twice the gross fraud loss or twice the gain, whichever is greater. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
According to the evidence at trial, between 2003 and 2010, Kolbusz falsely documented hundreds of patients’ records to support medically unnecessary, cosmetic treatments he ordered. He typically billed for removing 15 or more lesions from hundreds of repeat patients, many for whom he treated on at least 10 or more occasions, and received insurance payments of up to $352.40 per treatment. Overall, he falsely claimed to have removed more than 150 pre-cancerous lesions from each of approximately 350 Medicare patients, more than 450 patients covered by Blue Cross and Blue Shield, and additional patients covered by Aetna and Humana health insurance. In fact, Kolbusz usually provided treatments that were merely cosmetic and that were not eligible for insurance payments.
Eight patients, several employees, and an expert witness testified for the government, while Kolbusz testified in his defense. One patient, who was a teenager at the time, testified that she thought only that she was getting her freckles lightened while Kolbusz claimed that he had destroyed approximately 491 pre-cancerous lesions on her skin.
The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Lamont Pugh III, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General in Chicago; and James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago.
The government is being represented by Assistant U.S. Attorneys Stephen Chahn Lee, Abigail Peluso, and Jessica Romero.
Rosebud Woman AcquittedRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, woman was acquitted of Arson on October 9, 2014, as a result of a federal jury trial in Pierre, South Dakota. Mary Peneaux was indicted by a federal grand jury in November 2013.
The charge related to the alleged arson of a residence in Rosebud.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rosebud Sioux Tribe Law Enforcement Services. The U.S. Attorney's Office prosecuted the case.
Rapid City Man Sentenced for Felon in Possession of A FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of Felon in Possession was sentenced on October 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jesse D. Grimm, age 32, was sentenced to 12 months and one day in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Grimm was indicted for Felon in Possession by a federal grand jury on March 18, 2014. He pled guilty on June 26, 2014.
On January 20, 2014, Grimm possessed a Glock Model 27, which was inside a backpack in his pickup truck near Rapid City. Grimm was previously convicted of a felony of Aggravated Assault (Domestic Abuse) on January 2, 2009.
This case was investigated by the Division of Criminal Investigation and the Rapid City Police Department. Assistant U.S. Attorney Ted L. McBride prosecuted the case.Grimm was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for False StatementRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man convicted of False Statement was sentenced on October 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Justin Robert Yellow Elk, age 29, was sentenced to 8 months in custody, 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Yellow Elk was indicted for Concealing Person from Arrest and False Statement by a federal grand jury on March 18, 2014. He pled guilty to False Statement on June 6, 2014.
The conviction stems from when Yellow Elk, who was an employee at Community Alternatives of the Black Hills (CABH) in 2012, gave false statements to a Federal Bureau of Investigation (FBI) agent during a CABH escape investigation in April 2013.
This case was investigated by the FBI. Assistant U.S. Attorney Sarah Collins prosecuted the case. Yellow Elk was immediately turned over to the custody of the U.S. Marshals Service.
Project Safe ChildhoodRead the Press Release
Nottingham Man Pleads Guilty To Child Pornography PossessionCONCORD, NEW HAMPSHIRE: Ryan Rathe, 28, of Nottingham, pled guilty in United States District Court for the District of New Hampshire to possessing child pornography, announced U.S. Attorney John P. Kacavas.
The investigation into Rathe began in 2010, when the Department of Homeland Security (DHS) received information from the New Hampshire Crimes Against Children Task Force that an undercover officer had intercepted images of child pornography being made available by a computer user in Nottingham, New Hampshire.
Based on information provided by the task force, DHS conducted further investigation and secured a search warrant for Rathe’s residence in Nottingham. Computer evidence seized from Rathe’s home was examined and found to contain multiple images depicting young children engaged in illicit sexual acts.
United States Attorney Kacavas said, “Identifying, finding, and prosecuting predators like the defendant has been, and will continue to be, among the highest priorities of my office.”
Rathe, who is scheduled for sentencing in January 2015, faces a maximum prison term of ten years, followed by no less than five years of supervised release, and a maximum fine of $250,000.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, in conjunction with the New Hampshire Crimes Against Children Task Force (NH ICAC) and the Massachusetts State Police and is being prosecuted under Project Safe Childhood, a nationwide initiative by the U.S. 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 (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
This is case is being prosecuted by Assistant United States Attorney Nick Abramson.President of Houston Hospital and Three Others Convicted in $158 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Houston today convicted the president of Riverside General Hospital (Riverside), his son, and two others for their participation in a $158 million Medicare fraud scheme involving false claims for mental health treatment. Ten defendants have now been convicted in connection with the Riverside fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge Lucy R. Cruz of the Internal Revenue Service – Criminal Investigation’s (IRS-CI) Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement. U.S. District Judge Lee H. Rosenthal of the Southern District of Texas presided over the trial.
“The former president of Riverside hospital, his son, and their co-conspirators systematically defrauded Medicare, treating mentally ill and disabled Americans like chits to be traded and cashed out to pad their own pockets,” said Assistant Attorney General Caldwell. “For over six years, the Gibsons and their co-conspirators stuck taxpayers with millions in hospital bills, purportedly for intensive psychiatric treatment. But the ‘treatment’ was a sham – some patients just watched television all day, others had dementia and couldn’t understand the therapy they supposedly received, and other patients never even went to the hospital at all. Today’s verdict sends another powerful message that the department will hold accountable anyone who seeks personal profits at the expense of America’s most vulnerable citizens.”
Earnest Gibson III, 70, the former president of Riverside, Earnest Gibson IV, 37, the operator of one of Riverside’s satellite locations, and Regina Askew, 49, a group home owner, were each convicted of conspiracy to commit health care fraud and conspiracy to pay kickbacks, as well as related counts of paying and receiving illegal kickbacks. Robert Crane, 58, a patient recruiter, was convicted of conspiracy to pay and receive kickbacks. Gibson III and Gibson IV were also convicted of conspiracy to commit money laundering. Gibson III was acquitted of two substantive counts of paying and receiving illegal kickbacks.
According to evidence presented at trial, Gibson III, Gibson IV, and Askew operated a scheme to defraud Medicare beginning in 2005 and continuing until June 2012. The defendants caused the submission of false and fraudulent claims for partial hospitalization program (PHP) services to Medicare through the hospital. A PHP is a form of intensive outpatient treatment for severe mental illness.
Specifically, evidence at trial demonstrated that the Medicare beneficiaries for whom Riverside and its satellite locations billed Medicare for PHP services did not qualify for or need PHP services. Moreover, the Medicare beneficiaries rarely saw a psychiatrist and did not receive intensive psychiatric treatment. In fact, some of the Medicare beneficiaries were suffering from Alzheimer’s and could not actively participate in any treatment even if they actually qualified to receive PHP services. Nevertheless, Gibson III, Gibson IV and Askew submitted claims for reimbursement to Medicare claiming that PHP services were provided to the Medicare beneficiaries.
Evidence presented at trial also showed that Earnest Gibson III paid kickbacks to patient recruiters and to owners and operators of group care homes, including Askew, in exchange for those individuals delivering ineligible Medicare beneficiaries to the hospital’s PHPs. Gibson IV also paid patient recruiters, including Crane and others, in exchange for those individuals delivering ineligible Medicare beneficiaries to the specific PHP operated by Gibson IV.
Approximately $158 million in claims to Medicare were submitted for PHP services purportedly provided by the hospital to the recruited beneficiaries, when in fact, the PHP services were medically unnecessary or never provided. The proceeds from the health care fraud were used to promote the fraud scheme by paying kickbacks to patient recruiters and group home owners in exchange for their sending Medicare beneficiaries to the hospital’s PHPs.
Gibson III, Gibson IV, Askew and Crane are scheduled to be sentenced on Feb. 17, 2015.
Others involved in the fraudulent scheme have already pleaded guilty and are awaiting sentencing. Mohammad Khan, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty to conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay illegal kickbacks, and five counts of paying illegal kickbacks. William Bullock, an operator of a Riverside satellite location, as well as Leslie Clark, Robert Ferguson, Waddie McDuffie, and Sharonda Holmes, who were all involved in paying or receiving kickbacks, have also pleaded guilty to their roles in the scheme.
The case was investigated by the FBI, IRS-CI, and Texas MFCU, with assistance from the U.S. Department of Health and Human Services, Office of Inspector General’s (HHS-OIG) Dallas Regional Office, the Railroad Retirement Board, Office of Inspector General’s Chicago Field Office and the Office of Personnel Management’s Office of Inspector General, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case is being prosecuted by Assistant Chiefs Laura M.K. Cordova and Jennifer L. Saulino and Trial Attorney Ashlee C. McFarlane of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Pre-Trial Conference HearingRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney’s Office announces today that there will be a Pre-Trial Conference hearing tomorrow (October 21, 2014) in United States v. Warren Dominique McDaniel. The hearing will be held at 2:00 pm on October 21, 2014, before United States District Judge Michelle Childs (courtroom # 2) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.
Payroll Services Company Owner Pleads Guilty to Diverting $1.2 Million in Employment Taxes Due the IRSRead the Press Release
PROVIDENCE, R.I. – Warren Hebert, 67, of Barrington, R.I., owner of Checkmaster Payroll Services, pleaded guilty in U.S. District Court in Providence today to defrauding seven businesses and the Seekonk, Mass., Water District of more than $1.2 million dollars in federal payroll taxes that were to have been paid to the IRS, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
Hebert admitted to the court that he failed to pay to the IRS approximately $1,266,680 in funds he withdrew from client accounts to pay the clients’ federal employment taxes. Hebert admitted that he diverted the funds for his own use, in some instances paying the additional tax liabilities, interest and penalties of other clients whose tax returns he had previously failed to accurately prepare, file and pay-over.
Hebert admitted to the court, beginning as early as April 2009 and continuing through at least October 2011, he diverted money from at least seven businesses operating in Rhode Island and Massachusetts, including, among others, a moving and storage company, nursery school, jewelry packaging company, and marketing and communications company. Hebert also admitted to diverting funds from the Seekonk, Mass., Water District, a municipal water agency.
Appearing before U.S. District Court Chief Judge William E. Smith, Hebert pleaded guilty to eight counts of wire fraud and one count of impeding the administration of the Internal Revenue Code. He is scheduled to be sentenced on January 9, 2015.
Wire fraud is punishable by a statutory penalty of up to 20 years in federal prison and a fine of up to $250,000. Impeding the administration of the Internal Revenue Code is punishable by a statutory penalty of up to 3 years in federal prison and a fine of up to $250,000.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by IRS Criminal Investigation, with the assistance of the FBI, Rhode Island FDA Task Force, Rhode Island State Police and Barrington Police.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Owner of Texas Perfume Business Indicted for Violating Cash Reporting Requirements Involving More Than $1.6 millionRead the Press Release
The owner and president of a wholesale and retail perfume store in Laredo, Texas, was indicted by a federal grand jury today on 44 counts of causing his business to fail to report cash transactions of more than $10,000.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas made the announcement.
The indictment alleges that Virender Sharma, 59, of Laredo, Texas, was the owner and president of T.M. Perfumes, and was responsible for complying with the cash reporting requirements for the company. Despite knowing of his filing obligations since 2006, Sharma allegedly caused the business to fail to report at least 44 cash transactions exceeding $10,000 between June 2009 and July 2010, which totaled more than $1.6 million.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Internal Revenue Service – Criminal Investigation and the Drug Enforcement Administration. The case is being prosecuted by Trial Attorney Keith Liddle of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorney Ted Imperato of the Southern District of Texas.
- Owner of Laredo Perfume Business Indicted for Violating Cash Reporting Requirements
Over 29,000 Students to Pledge Against Gun ViolenceRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Bill Nettles announced that on Wednesday, October 22, 2014, members of the United States Attorney’s Office and their local, state, and federal law enforcement partners will meet with students from across South Carolina, as part of South Carolina’s 13th annual Student Pledge Against Gun Violence.
Participating Schools: Abbeville High School Abbeville, SC Alice Drive Middle School Sumter, SC Andrews, SC Arden Elementary School Columbia, SC Bennettsville Intermediate School Bennettsville, SC Beech Hill Elementary School Summerville, SC Bethune-Bowman Elementary School Rowesville, SC Blacksburg Middle School Blacksburg, SC Brockington Elementary Magnet School Darlington, SC Burton-Pack Elementary School Columbia, SC Busbee Creative Arts Academy Cayce, SC Carver-Lyon Elementary School Columbia, SC Castle Heights Middle School Rockhill, SC C.E. Murray Junior High School Greeleyville, SC C.E. Murray High School Greeleyville, SC Central Elementary School Central, SC Cherokee Trail Elementary School Donalds, SC Croswell Drive Elementary School Sumter, SC E.B. Morse Elementary School Laurens, SC Ebenezer Middle School Sumter, SC Fairfax Elementary School Fairfax, SC Fairfield Elementary School Winnsboro, SC Fair-Oak Elementary School Westminster, SC Forest Brook Middle School Myrtle Beach, SC Grassy Pond Elementary School Gaffney, SC Hillcrest Middle School Dalzell, SC Hollis Academy Elementary School Greenville, SC J.C. Lynch Elementary School Coward, SC John W. Moore Intermediate School Florence, SC Joseph Keels Elementary School Columbia, SC Kinard Elementary School Clover, SC Ladson Elementary School North Charleston, SC Lamar High School Lamar, SC Lakeside Middle School Anderson, SC Latta Elementary Latta, SC Laurens Elementary School Laurens, SC Laurens Middle School Laurens, SC Limestone-Central Elementary School Gaffney, SC Lewisville Middle School Richburg, SC Logan Elementary School Columbia, SC Loris Elementary School Loris, SC Luther Vaughn Elementary School Gaffney, SC Macedonia Middle School Moncks Corner, SC Malcolm C. Hursey Elementary School North Charleston, SC Marion High School Marion, SC Mary Bramlett Elementary School Gaffney, SC Mary Ford Elementary School Charleston, SC McLaurin Elementary School Florence, SC McKissick Elementary School Easley, SC Merriwether Middle School North Augusta, SC Mitchell Math and Science Elementary School Charleston, SC Nevitt Forest Community School of Innovation Anderson, SC Northwest Elementary School Gaffney, SC Northwest Middle School Travelers Rest, SC Oakway Intermediate School Westminster, SC Oakwood Windsor Elementary School Aiken, SC Petersburg Primary School Pageland, SC Pocalla Springs Elementary School Sumter, SC Rawlinson Road Elementary School Rockhill, SC Rivelon Elementary School Orangeburg, SC South Kilbourne Elementary School Columbia, SC Stewart Heights Elementary School Dillon, SC Timrod Elementary School Florence, SC West Hartsville Elementary School Hartsville, SC W.A. Perry Middle School Columbia, SC
With a focus on keeping their schools and communities safe, students in middle school and high school will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult. The effort is part of South Carolina’s Project CeaseFire, which is South Carolina’s implementation of the Department of Justice’s Project Safe Neighborhoods program, which is aimed at reducing gun violence. The Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a “Day of National Concern about Young People and Gun Violence.” The program provides a means for beginning the conversation with young people about gun violence. Students from around the country will join together in pledging to do their part to end gun violence. Over the years, millions of students nationwide have signed the pledge.
Mr. Nettles said that, just as in years past, the response to the pledge campaign has been outstanding, with approximately 29, 203 students from 67 schools across the state agreeing to take part. "Once again our office is pleased to take this opportunity to reach out to South Carolina students with an effort to engage students, teachers, and administrators to facilitate a dialogue with students about gun violence and the importance of making good decisions," stated Mr. Nettles.
The U.S. Attorney's Office worked with schools, student resource officers, and law enforcement agencies throughout the state to make the pledges available, providing the pledges to participating schools as well as scheduling presentations for some 37 of the schools that requested speakers. Below is a list of South Carolina schools that are participating in this year's pledge. For information on any events scheduled for a particular school, please contact the school. For additional information concerning the pledge, visit the national Student Pledge website atNorthern Arapaho Tribe Woman Pleads Guilty in New Mexico to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Tarasina Wallowingbull, 27, pleaded guilty this morning to abusing a child in New Mexico’s Indian County. Wallowingbull is a member of the Northern Arapaho Tribe of Fort Washakie, Wyoming, who currently resides in Albuquerque, N.M.
Wallowingbull was arrested on July 29, 2014, on a criminal complaint charging her with assault resulting in serious bodily injury. According to the criminal complaint, on June 11, 2014, Wallowingbull crashed her vehicle in San Felipe Pueblo in Sandoval County, N.M., while driving under the influence of alcohol. A young child, who was ejected from Wallowingbull’s vehicle at the time of the single-vehicle crash, sustained serious injuries.
Today Wallowingbull pled guilty to a felony information charging her with abuse of a child in Indian County. In entering her guilty plea, Wallowingbull admitted causing a child under the age of 18 years to be placed in a situation that endangered the child’s life or health.
At sentencing, Wallowingbull faces a statutory maximum sentence of three years in prison. Her sentencing hearing has yet to be scheduled.
This case was investigated by the Southern Pueblos and Laguna Agencies of the BIA’s Office of Justice Services, and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.Noaa National Weather Service Employee Indicted for Allegedly Downloading Restricted Government FilesRead the Press Release
*On March 10, 2015, the Department of Justice voluntarily moved to dismiss the indictment against Ms. Chen. On March 11, 2015, the U.S. District Court granted the motion, dismissing all charges.DAYTON, OHIO – Xiafen “Sherry” Chen, 59, of Wilmington, Ohio, was indicted in U.S. District Court for allegedly accessing restricted U.S. Government files. Chen is a hydrologist currently employed at the National Oceanic and Atmospheric Administration’s (NOAA) facility located in Wilmington, Ohio.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge for the Federal Bureau of Investigation (FBI) in Cincinnati, Ohio, Dr. Kathryn Sullivan, the NOAA Administrator and George Lee, Special Agent in Charge of the U.S. Department of Commerce’s Investigations and Threat Management Division announced the indictment today.
The indictment alleges that on various dates in May 2012, Chen illegally accessed restricted areas of a protected U.S. Government computer database and downloaded sensitive files from the National Inventory of Dams. This database is maintained and controlled by the U.S. Army Corps of Engineers in conjunction with the National Dam Safety Review Board.
The indictment further alleges that on June 11, 2013, Chen provided materially false statements to officials from the Department of Commerce Office of Security who were assigned to investigate her activities.
The indictment charges Chen with one count of theft of U.S. Government property, a crime punishable by up to 10 years in prison and a $250,000 fine; one count of illegally accessing a U.S. Government computer database, a crime punishable by up to 5 years in prison and a $250,000 fine; and two counts of making materially false statements to federal agents, crimes each punishable by up to 5 years in prison and a $250,000 fine.
Chen was arrested today by FBI agents at her place of work at the Wilmington, Ohio NOAA facility.
U.S. Attorney Stewart commended FBI and the U.S. Department of Commerce’s Office of Security who are jointly investigating this case. Assistant United States Attorney Dwight Keller is representing the government in this case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.New Mexico Woman Sentenced for Possession of a Firearm and AmmunitionRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on October 20, 2014, April Marie Lacey, 32, Las Cruces, NM, was sentenced before U. S. District Judge Daniel L. Hovland to serve 10 years in prison for and possession of a firearm and ammunition by a convicted felon.
On September 14, 2013, a Montana Highway Patrol officer attempted to stop a car driven by Christopher Russell near Fairview, Montana. Russell refused to stop and a chase commenced which ended in North Dakota. McKenzie County law enforcement officials were able to apprehend Russell on Highway 85 near Arnegard, ND. Lacey was the lone passenger in the car. After stopping and arresting the two, officers found approximately two ounces of methamphetamine and a .380 caliber pistol in the car. Evidence revealed that the couple was traveling to the New Town, ND area to distribute the methamphetamine. Lacey was prohibited from legally possessing a firearm due to four felony convictions, including 2005 New Mexico convictions for armed robbery with a deadly weapon and a 2013 Washington conviction for third degree assault.
Judge Hovland also ordered that Lacey serve 3 years of supervised release and was ordered to pay a $100 pecial assessment to the Crime Victims Fund.
On September 8, 2014, Russell, 34, Tacoma, Wash., was sentenced before U. S. District Judge Daniel L. Hovland to serve 20 years in prison for possession with intent to distribute a controlled substance and possession of a firearm and ammunition by a convicted felon. Russell was prohibited from legally possessing a firearm due to four felony convictions, including a 2006 Missouri conviction for delivery of a controlled substance.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Northwest Narcotics Task Force, McKenzie County Sheriff’s Office, Federal Bureau of Investigation, and the Montana Highway Patrol.
Assistant U. S. Attorney David D Hagler prosecuted the case.
New Hampshire Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
A Hampton, New Hampshire, man pleaded guilty today in the U.S. District Court for the District of New Hampshire to filing a false federal income tax return for tax year 2009, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, Menashe Cohen, an oriental carpet dealer, and his sister maintained an undeclared bank account at UBS in Switzerland that had a balance of approximately $1.3 million. Cohen also maintained bank accounts in Israel and in Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France. Although Cohen’s return for tax year 2009 reported that he had a financial interest in a bank account in Jersey, the return failed to report that he had financial interests in the accounts located in Switzerland and Israel. In addition, Cohen’s return only reported $350 in interest income, when in fact he had received approximately $66,500 in interest income during 2009.
In total, for tax years 2006 through 2009, Cohen failed to report approximately $170,000 in income earned from offshore bank accounts. In addition, Cohen filed a false and fraudulent Report of Foreign Bank and Financial Accounts (FBAR) for 2009, wherein Cohen reported he had bank accounts in Israel and Jersey on the FBAR, but failed to report his financial interest in the UBS account in Switzerland.
According to the law, U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns (Forms 1040). Additionally, U.S. citizens and residents must file a FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest or signature or other authority.
Cohen faces a statutory potential maximum sentence of three years in prison and a maximum fine of $250,000 at his Jan. 26, 2015, sentencing. In addition, Cohen has agreed to resolve his civil liability for failing to report his financial interest in the UBS account on a FBAR by paying a 50 percent civil penalty to the IRS based on the high balance of his one-half interest in the account.
This case was investigated by special agents of IRS-Criminal Investigation and is being prosecuted by Senior Litigation Counsel John E. Sullivan of the department’s Tax Division and Assistant U.S. Attorney Robert M. Kinsella for the District of New Hampshire.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax/.
New Hampshire Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
WASHINGTON – A Hampton, New Hampshire, man pleaded guilty today in the U.S. District Court for the District of New Hampshire to filing a false federal income tax return for tax year 2009, the Justice Department and Internal Revenue Service (IRS) announced.
According to court documents, Menashe Cohen, an oriental carpet dealer, and his sister maintained an undeclared bank account at UBS in Switzerland that had a balance of approximately $1.3 million. Cohen also maintained bank accounts in Israel and in Jersey, a British Crown dependency located in the Channel Islands off the coast of Normandy, France. Although Cohen’s return for tax year 2009 reported that he had a financial interest in a bank account in Jersey, the return failed to report that he had financial interests in the accounts located in Switzerland and Israel. In addition, Cohen’s return only reported $350 in interest income, when in fact he had received approximately $66,500 in interest income during 2009.
In total, for tax years 2006 through 2009, Cohen failed to report approximately $170,000 in income earned from offshore bank accounts. In addition, Cohen filed a false and fraudulent Report of Foreign Bank and Financial Accounts (FBAR) for 2009, wherein Cohen reported he had bank accounts in Israel and Jersey on the FBAR, but failed to report his financial interest in the UBS account in Switzerland.
According to the law, U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns (Forms 1040). Additionally, U.S. citizens and residents must file a FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest or signature or other authority.
Cohen faces a statutory potential maximum sentence of three years in prison and a maximum fine of $250,000 at his Jan. 26, 2015, sentencing. In addition, Cohen has agreed to resolve his civil liability for failing to report his financial interest in the UBS account on a FBAR by paying a 50 percent civil penalty to the IRS based on the high balance of his one-half interest in the account.
This case was investigated by special agents of IRS-Criminal Investigation and is being prosecuted by Senior Litigation Counsel John E. Sullivan of the department’s Tax Division and Assistant U.S. Attorney Robert M. Kinsella for the District of New Hampshire.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax/.Mobile County Man Sentenced to 5 Years Probation for Theft of Social Security (SSA) Widow's BenefitsRead the Press Release
The United States Attorney, Kenyen R. Brown, announces that Lovell Rhodes, a 77 year old resident of Mobile, Alabama was sentenced today. Mr. Rhodes pled guilty to theft of government funds on July 21, 2014. Mr. Rhodes mother died in 1997, and at that time, she was receiving SSA widow’s benefits. Her benefits continued to be deposited monthly into her bank account at Regions Bank for more than seven years after her death. Mr. Rhodes was sentenced today to a five year probationary term and order to repay the Social Security Administration $132,572.00, which was the total amount he stole over the seven year period.
Special Agents of the Social Security Administration’s Office of Inspector General investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Millcreek Man Sentenced to 20 Years for Production and Possession of Child PornographyRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 20 years in jail and lifetime supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Todd Calvin Lapping, 40.
According to information presented to the court, Lapping produced images of a minor engaged in sexually explicit conduct and possessed computer images depicting minors engaging in sexually explicit conduct.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Millcreek Police Department, the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Lapping.
Launched in February 2006, Project Safe Childhood is a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys' Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Michigan Luxury Car Mechanic Indicted for Tax FraudRead the Press Release
A mechanic who specializes in repairing exotic foreign cars and other high-end luxury vehicles was arrested on Friday after being indicted on tax charges by a grand jury in Detroit, the Justice Department announced.
Terry Myr, a resident of Smith’s Creek, Michigan, was charged with tax evasion and failure to file tax returns. If convicted, Myr faces a maximum sentence of nine years in prison and a $650,000 fine.
According to the indictment, the Internal Revenue Service (IRS) assessed Myr approximately $195,000 in taxes, interest and penalties for his failure to report all of his income for the years 2000 through 2003. To avoid the IRS collecting this money, Myr transferred property that he owned to a third party, used nominee companies to conceal his income and assets, and otherwise dealt in cash. The indictment alleges that Myr failed to file tax returns from 2002 through 2010.
The case was investigated by special agents of the IRS – Criminal Investigation. Trial Attorneys Tiwana Wright and Kenneth Vert from the Justice Department’s Tax Division are prosecuting the case.
An indictment merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Medical Office Receptionist Pleads Guilty to Embezzlement, Credit Card Fraud, and Tax EvasionRead the Press Release
NEWARK, N.J. – A receptionist previously employed by a medical office in Kearny, New Jersey, today admitted embezzling more than $446,000 from her former employer, using fraudulent credit cards to obtain more than $200,000 in goods and services and evading taxes on that illegal income, U.S. Attorney Paul J. Fishman announced.
Gwendolyn Muller, 53, formerly of Kearny, pleaded guilty before U.S. District Judge William J. Martini in Newark federal court to an information charging one count each of embezzlement, credit card fraud and tax evasion.
According to documents filed in this case and statements made in court:
From 2007 through 2011, Muller used her position at the medical practice to take, cash, and conceal more than $446,000 in checks paid by insurance companies to the medical practice for services to patients. At various times during this same period, Muller also fraudulently obtained 10 credit cards in the name of a principal of the medical practice and used those cards to charge more than $218,000 in goods and services – a portion of which Muller paid for with embezzled funds. Muller also admitted to filing a false tax return to evade the payment of taxes on this illegally obtained income.
The embezzlement and credit card counts to which Muller pleaded guilty each carry a maximum potential penalty of 10 years in prison, and the tax count carries a maximum potential penalty of five years in prison. All three counts are also punishable by a fine of $250,000, or twice the gross loss or gain caused by the offense. Sentencing is scheduled for Feb. 19, 2015. Under terms of the plea agreement, Muller is required to forfeit $556,000 to the United States.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel Andrew Leven of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $540 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
14-378
Defense counsel: Donald Rinaldi Esq., Nutley, N.J.
Muller, Gwendolyn Information
Manderson Man Sentenced to 60 Months for Conspiracy to Distribute MarijuanaRead the Press Release
United States Attorney Brendan V. Johnson announced that a Manderson, South Dakota, man convicted of Conspiracy to Distribute Marijuana was sentenced on October 15, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Robert Dale Martin, age 47, was sentenced to 60 years in custody, 4 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Martin was indicted for Conspiracy to Distribute Controlled Substances by a federal grand jury on February 20, 2014. He pled guilty on June 27, 2014.
Beginning in the year 2000 through 2012, Martin received pound quantities of marijuana and brought it into South Dakota for further distribution. Martin engaged in a supervisory role and distributed more than 100 kilograms of marijuana on the Pine Ridge Reservation during this conspiracy.
This case was investigated by Northern Plains Safe Trails Drug Enforcement Task Force, which includes the following agencies: Federal Bureau of Investigation, Division of Criminal Investigation, Bureau of Indian Affairs Office of Justice Services, Oglala Sioux Tribe Department of Public Safety, Fall River County Sheriff’s Office, and the Fall River State’s Attorney’s Office. U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations also assisted with the investigation. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Martin was immediately turned over to the custody of the U.S. Marshals Service.
Man Sentenced to Statutory Maximum and Remanded into Custody for Defrauding Wichita Falls Couple of Their Life SavingsRead the Press Release
DALLAS — A man who admitted defrauding a couple from Wichita Falls, Texas, out of their life savings, was sentenced this morning in federal court in Wichita Falls, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Paul Eugene Prewitt, 44, most recently of Phoenix, Arizona, was sentenced by U.S. District Judge Reed C. O’Connor to the statutory maximum sentence of 60 months in federal prison and ordered to pay $242,250 in restitution. Judge O’Connor remanded Prewitt, who had been on bond, into federal custody. Prewitt pleaded guilty in May 2014 to a superseding information charging one count of conspiracy to commit wire fraud.
According to documents filed in the case, from February 2009 through at least 2012, Prewitt ran a scheme to defraud an elderly couple of their retirement savings through a series of fraudulent, false and fictitious investment opportunities. Prewitt admitted making false and fraudulent representations to the couple about investment opportunities, including a condominium project in Utah that did not even exist. As a result of Prewitt’s representations, the elderly victims wired or mailed all of their retirement savings to Prewitt, who used the money for personal expenses. Prewitt admitted that he never invested the money and that he received approximately $242,250 from the victims.
The case was investigated by the FBI, Wichita Falls Resident Agency, with special assistance from the FBI’s Phoenix Division. Assistant U.S. Attorney J. Nicholas Bunch prosecuted.
Man Pleads Guilty to Robbery at Wendy's in TopekaRead the Press Release
TOPEKA, KAN. - A man pleaded guilty Monday to an armed robbery at a Wendy’s restaurant in Topeka, U.S. Attorney Barry Grissom said.
George Christopher Walton, Jr., 37, Topeka, Kan., pleaded guilty to one count of robbery and one count of brandishing a firearm during the robbery. In his plea he admitted that on Aug. 4, 2014, he entered the Wendy’s restaurant at 728 S.W. Topeka Blvd. dressed all in black, wearing a mask and brandishing a firearm. He demanded cash from the register and then fled with the money.
Walton got into a car driven by his daughter and co-defendant Tashaun Desanic Walton. Police chased the car for several minutes before it stopped and Walton jumped out. He was captured a short while later in a residential area.
Sentencing is set for Jan. 26. Both parties have agreed to recommend a sentence of 84 months in federal prison.
His daughter, co-defendant Tashaun Desanic Walton, is set for a change of plea hearing Nov. 3.
Grissom commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Jared Maag for their work on the case.In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Lower Brule Man Sentenced for Malicious MischiefRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man charged with Malicious Mischief pled guilty to and was sentenced on October 10, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Thomas Loudner, age 38, was sentenced to 2 months of custody, 1 year of supervised release, $1,000 restitution to the Lower Brule Sioux Tribe, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on January 26, 2013, when Loudner and others were driving around the Lower Brule Community. They were drinking and began to discuss having a bonfire. Loudner drove to the Lower Brule Sioux Tribe Old Boxing Club building, got out of his vehicle, grabbed a gas can, entered the building and set it on fire. The building sustained damage as a result of the fire.
The investigation was conducted by the Bureau of Indian Affairs, Lower Brule Agency. The case was prosecuted by Assistant U.S. Attorney Meghan N. Dilges.
Loudner was remanded to the custody of the U.S. Marshals Service.