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Monday 20 October 2014
Lackawanna Man Sentenced on to Drug ChargesRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Kenneth Sweat, 26, of Lackawanna, N.Y., who was convicted of possession with intent to distribute and distribute crack cocaine, was sentenced to 27 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney John M. Alsup, who handled the case, stated that on February 18, 2013 and February 25, 2013, the defendant sold 36 grams of crack cocaine to a confidential source working with the Drug Enforcement Administration and Lackawanna Police.
The sentencing is the culmination of an investigation by the Lackawanna Police Department, under the direction of Chief James Michel, and the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division.Idaho Resident Sentenced for Theft of Social Security BenefitsRead the Press Release
BOISE – Melinda Sue Priddy, 43, of New Meadows, Idaho, was sentenced today to five years of probation, including three months of home detention, for theft of $138,910 from the Social Security Administration, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Priddy to pay $138,910 in restitution to the Social Security Administration and to perform 100 hours of community service. She pleaded guilty to the charge on July 30, 2014.
According to the plea agreement, Priddy’s grandmother died in May of 2004. At the time of her death, Priddy’s grandmother was receiving survivor benefits from the Social Security Administration. These deposits were being made on a monthly basis into a bank account held jointly by Priddy and her grandmother. The Social Security Administration did not receive notification of Priddy’s grandmother’s death, and continued to make the monthly deposits into their joint account. From July of 2004 through May of 2013, Priddy, knowing that she was acting illegally, regularly withdrew this money for her own use.
The case was investigated by the Office of the Inspector General for the Social Security Administration.
Huntington Traffic Stop Exposes Heroin DealerRead the Press Release
HUNTINGTON, W.Va. – United States Attorney Booth Goodwin announced that Dwight McVernon Green, 24, of Huntington, West Virginia pled guilty today in federal court in Huntington to possession with intent to distribute heroin. United States District Court Chief Judge Robert C. Chambers presided over the plea hearing.
In the early morning of July 10, 2014, Huntington Police stopped a 2013 black Chevrolet Malibu for speeding in the 400 block of 26th Street. Green, the driver of the speeding car, was arrested for driving under the influence of alcohol. During a subsequent search of the vehicle, officers found a loaded 9 mm automatic pistol with a round in the chamber, a bag containing $59,950 in cash, a box of clear plastic baggies, a bag with more than 104 grams of white powder that tested positive for cocaine, and a bag with more than 50 grams of a brown substance that tested positive for heroin. Green faces up to 20 years imprisonment and a $1 million fine when he is sentenced on February 2, 2015.
The investigation was conducted by Huntington Police Department. The case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Grandview Business Owner Indicted in $3 Million Extortion, Money Laundering SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Grandview, Mo., lawn care company has been indicted by a federal grand jury for a $3 million extortion and money laundering scheme that began when a cocaine deal went awry.
Shelton E. Lewis, also known as “Steve Johnson” or “C,” 39, of Grandview, was charged in a 19-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, Sept. 18, 2014. That indictment was unsealed and made public following Lewis’s arrest in Atlanta, Ga., and initial court appearance in the U.S. District Court in the Northern District of Georgia. Lewis remains in custody pending a detention hearing in the U.S. District Court in Kansas City, Mo.
Lewis is the owner of Green Results Landscape & Lawncare, LLC. According to the federal indictment, Lewis and/or Green Results Landscape & Lawncare held three accounts at Academy Bank, a division of the Armed Forces Bank, N.A. These accounts were opened shortly after his business was formed and regularly held minimal, or as was often the case, negative balances. In August of 2012, the indictment says, that changed. Lewis allegedly began depositing large cashier’s checks and business checks into these accounts. From Aug. 31, 2012, to Aug. 14, 2013, the indictment says, Lewis deposited a total of $3,050,110 into his accounts, with all the proceeds coming from the same company.
The indictment alleges that Lewis transmitted multiple threats to injure that company’s owner, RW, as part of an extortion scheme.
According to the indictment, the extortion scheme began in July 2012 when Lewis agreed to sell approximately six ounces of cocaine for $3,000 to RW. While RW was waiting for the deal to be consummated, he was approached by the police. Lewis witnessed that police contact, the indictment says, and did not return with the agreed-upon cocaine. Lewis allegedly told RW that, since the deal was not completed, the dealer (Lewis’s source) was assessing a $10,000 penalty. RW paid the penalty and picked up what he thought was cocaine at the drop location, the indictment says, but only received a bag of flour.
In August 2012, according to the indictment, Lewis told RW that he had a plan for him to get his money back. The plan was for RW to purchase a block of cocaine and sell it, thereby recouping RW’s previously spent money. RW allegedly paid the requested money and additionally provided a Rolex watch that Lewis demanded. RW was further directed to obtain a pay-as-you go, or throw-away phone for future contact.
In the fall of 2012, Lewis allegedly told RW that he had been pulled over by the police and that the money and watch were seized. Lewis also claimed that the police had RW’s fingerprints from the watch and were going to charge RW with drug conspiracy. Lewis allegedly informed RW over the throw-away phone that he knew an attorney who could make the investigation go away, but it would require paying off the attorney and the judge assigned the case. RW paid the requested money, according to the indictment.
Lewis allegedly told RW that the attorney would contact him in the future. According to the indictment, when a person claiming to be an attorney contacted RW on the throw-away phone, the attorney reported that an unrelated federal investigation had developed which would require additional bribes to clear up. RW allegedly paid the additional, exorbitant sum.
RW was called, again on the throw-away phone, and told that the drug cartel knew where he lived and had left a present for him, the indictment says, which turned out to be a box full of Winchester .45-caliber, semi-automatic ammunition. Additionally, according to the indictment, RW was told that if he failed to make the payments requested, he or any family member presently in his home would have their heads chopped off.
According to the indictment, these threats were made using a throw-away phone that RW had been instructed to obtain. The phone calls were often followed by text messages describing payments that RW was expected to make in order to keep him from being charged with a crime, or to prevent violence from being inflicted upon him.
In addition to one count of threatening extortionate communications, the federal indictment charges Lewis with 18 counts of money laundering for engaging in monetary transactions in criminally derived property. Those transactions allegedly include multiple cash withdrawals at the Bellagio Resort & Casino in Las Vegas, Nev., purchases of luxury items such as a Rolex watch and several automobiles – including a Mercedes Benz, an Aston Martin and a Lamborghini – and paying off the mortgage on his Grandview residence.
The indictment also contains a forfeiture allegation, which would require Lewis to forfeit to the government any property derived from the proceeds of the alleged offenses, including a $3,050,110 money judgment (representing the proceeds obtained by Lewis from the scheme), $1,053,586 that has been seized from his bank accounts, a 2005 Bentley, a 2006 Mercedes Benz, a 2007 Aston Martin, a 2011 Aston Martin, a 2012 Lamborghini Gallardo and a 2013 Chevrolet Camaro.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Valenti. It was investigated by IRS-Criminal Investigation and the Kansas City, Mo., Police Department.Glasgow Man Sentenced for Unlawful Possession of A Firearm by A FelonRead the Press Release
Convicted Felon Shot Off-Duty Policer Officer With a Sawed-off Shotgun
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Nickey Don Smith, II, 39, of Glasgow, West Virginia was sentenced today to eight years in prison and three years of supervised release following a 2012 guilty plea to being a felon in possession of a firearm. In December of 2011, Nickey Don Smith shot Glasgow police officer Steven Smith with a sawed-off shotgun at close range. Officer Smith, unrelated to Nickey Don Smith, and another Glasgow police officer had gone to Nickey Don Smith’s Glass Fire home in response to a 911 call made by Nickey Don Smith. After the officers arrived at the home, they announced “Police Department” twice, while they were making their way up the stairs to the porch. As Officer Smith approached the door, Nickey Don Smith shot him with a sawed off Central Arms 12 gauge shotgun. The shotgun blast struck Officer Smith in the arm, shoulder and the side of his chest, causing serious, permanent and life-threatening injuries and requiring multiple surgeries to repair the damage.
Nickey Don Smith was indicted by a federal grand jury in February of 2012 on two counts of felon in possession of a firearm. He pleaded guilty in June of 2012, and has been awaiting the outcome of psychological testing to determine his competency prior to sentencing. The Honorable John T. Copenhaver, Jr., United States District Court Judge, presided over the sentencing hearing today and issued a 16-page memorandum opinion regarding Nickey Don Smith’s competency. After a comprehensive review of the facts of the case and the reports from three psychologists, the Court concluded that Nickey Don Smith’s “mental disease or defect of his condition – properly diagnosed as Personality Disorder NOS with paranoid, narcissistic and anti-social factors – was not so severe as to render him unable to appreciate the nature and quality or the wrongfulness of his act of possessing a firearm as a convicted felon or his act of maliciously wounding Officer Smith at the time of the commission those acts.”
Former Vermont Corrections Officer Sentenced to 5 Months Incarceration and 5 Months Home Confinement in Connection with Plea to Obstruction of JusticeRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on October 16, 2014, former Vermont Correctional Officer Tracy Holliman, of South Burlington, was sentenced to 5 months incarceration followed by 5 months home confinement by United States District Court Judge Geoffrey Crawford in Rutland. The Grand Jury initially returned an Indictment charging Holliman with four counts of engaging in sexual acts with women over whom he had custodial authority while they were held in federal custody at the Chittenden Regional Correctional Facility in South Burlington. Court papers explained that Holliman pleaded to obstruction of justice in connection with his efforts to delete emails in which he admitted to some of the originally charged conduct. At the conclusion of the sentencing hearing the Court granted the United States’ motion to dismiss the original Indictment.
It is a federal felony for a correctional officer to engage in sexual acts with a federal inmate over whom the officer has custodial, supervisory, or disciplinary authority, while working at a federal facility or one that that contracts with the United States to house federal detainees. Consent is not a legal defense to corrections staff who engage in sexual acts with inmates. The United States Attorney has noted that this is due to several factors, including the significant power disparity between inmates and correctional staff.
Working in cooperation with the Vermont Department of Corrections, this matter was investigated by the United States Marshals Service, the Federal Bureau of Investigation, and the Vermont State Police.
Holliman is represented by Mark Kaplan, Esq., of Burlington.Former Marlborough Resident Sentenced to 5 Years in Federal Prison for Robbing 5 Connecticut PharmaciesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DAVID HANEY, 53, of Marlborough, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 60 months of imprisonment, followed by three years of supervised release, for robbing five Connecticut pharmacies last year.
On November 22, 2013, HANEY was arrested on a criminal complaint charging him with the armed robbery of a CVS store located at 525 Buckland Road in South Windsor. At approximately 7:45 p.m. on September 25, 2013, HANEY entered the store and proceeded to the pharmacy counter. He then asked for the pharmacist by name, showed the pharmacist what appeared to be a firearm that was in his waistband and demanded oxycodone pills. The pharmacist gave HANEY more than 2000 oxycodone pills of different strengths and HANEY exited the store.
On February 19, 2014, HANEY pleaded guilty to one count of interference with commerce by robbery related to the South Windsor CVS robbery. In pleading guilty, HANEY also admitted that he committed similar robberies at a Walgreens on Deming Street in Manchester on September 15, 2013, a Walgreens on Main Street in Meriden on October 3, 2013, a CVS on Main Street in East Hartford on October 11, 2013, and a Walgreens on Talcottville Road in Vernon on November 9, 2013.
HANEY has admitted that he used most of the pills to fuel his own addiction to pain medication and sold the rest. He has been detained since his arrest.
Judge Underhill ordered that HANEY make restitution to the victims.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration and the South Windsor, East Hartford, Meriden, Vernon, and Manchester Police Departments, with the assistance of other state and local law enforcement agencies. The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Caregiver Pleads Guilty to Criminal Abuse of A Vulnerable AdultDefendant Struck and Dragged Woman with Cognitive DisabilitiesRead the Press Release
WASHINGTON - A former direct care giver, Sherifat Kofo Yusuff, has pled guilty to criminal abuse of a 50-year-old vulnerable adult, U.S. Attorney Ronald C. Machen, Jr. and District of Columbia Interim Inspector General Blanche L. Bruce announced today.
Yusuff, 53, of Washington, D.C., pled guilty on Oct. 16, 2014, in the Superior Court of the District of Columbia, to one count of criminal abuse of a vulnerable adult. The Honorable Senior Judge Susan R. Winfield sentenced Yusuff to 30 days in jail. The judge suspended the time on the condition that Yusuff successfully completes six months of probation.
According to the government’s evidence, on Feb. 19, 2014, Yusuff worked for Marjul Homes, Inc. (Marjul), which operated a residential group home for individuals with developmental disabilities. Yusuff was a direct support professional with responsibility for caring for vulnerable adults diagnosed with severe developmental and cognitive disabilities. On that day, she transported and accompanied one of the adults to MedStar National Rehabilitation Hospital, where the woman was scheduled to undergo a sleep study.
Shortly after medical staff placed electrodes and sensors on the vulnerable adult, the woman became agitated and attempted to remove those items from her body. Yusuff admitted that she became frustrated with this behavior, struck the woman with an open hand, and dragged her across the floor. These actions were captured on a camera used for the sleep study, and the video was subsequently used by law enforcement in its investigation of the case.
In announcing the guilty plea, U.S. Attorney Machen and Interim Inspector General Bruce praised the work of former Investigator Tracey Chambers, of the Office of the Inspector General Medicaid Fraud Control Unit (MFCU). They also commended the efforts of Assistant U.S. Attorneys William Schurmann and Scott Ray, who worked on the case from the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Brent Wolfingbarger of the MFCU, who jointly prosecuted the case.
14-233Florida Man Pleads Guilty to Role in $14.5 Million Dollar Telemarketing ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that on October 20, 2014, Wesley Aldred, 26, of Palm Beach Gardens, FL, pled guilty to one count of conspiracy to commit mail and wire fraud in connection with telemarketing. The investigation determined that Aldred was a telemarketer at C&G Marketing Associates, LLC, a Florida corporation that in 2009 defrauded consumers using the fictitious name, Premier Timeshare Solutions (“PTS”). In various court filings related to the PTS scam, the government has alleged that the overall scam bilked consumers of $14.5 million from over 7,000 people throughout the United States and Canada, including dozens of victims within the Southern District of Illinois. Sentencing is set for February 9, 2015, at 11:00 a.m., in East St. Louis, Illinois, where Aldred will face up to 25 years in prison, a fine of up to $250,000, and up to 5 years of supervised release.
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service with assistance from the Florida Attorney General’s Office and the Florida Department of Agriculture. The case is being prosecuted by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney William Coonan.
Felon Facing 10 Years in Prison for Illegally Possessing GunRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal gun laws, United States Attorney David J. Hickton announced today.
Kenneth Hugh Hawkins, 36, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that on or about August 7, 2013, Hawkins possessed a firearm while being a convicted felon
Judge Cercone scheduled sentencing for February 23, 2015 at 2:15 p.m. The law provides for a total sentence of 10 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.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department conducted the investigation that led to the prosecution of Hawkins.
Federal Jury in Del Rio Convicts Los Zetas Cartel Drug DealerRead the Press Release
A member of a drug trafficking organization with ties to the Los Zetas Cartel operating in Piedras Negras, Mexico, faces up to life in federal prison after a jury convicted him of smuggling thousands of kilograms of marijuana into the United States from Mexico announced United States Attorney Robert Pitman, Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division, Janice Ayala, Homeland Security Investigations Special Agent in Charge, San Antonio, and Joseph M. Arabit, Drug Enforcement Administration Special Agent in Charge, Houston Division.
On October 16, 2014, jurors convicted 20–year-old Servando Benitez-Reynoso of one count of conspiracy to possess with the intent to distribute 1,000 kilograms or more of marijuana and one count of possession with the intent to distribute 1,000 kilograms or more of marijuana. The jurors found him not guilty of conspiracy to commit bulk cash smuggling and one count of bulk cash smuggling.
According to courtroom testimony, Benitez-Reynoso was the organizer for the drug trafficking organization in the United States who was responsible for coordinating the movement of marijuana loads from the Quemado, TX, and Normandy, TX, areas to San Antonio and Austin between September 27, 2012, and July 31, 2013. Benitez-Reynoso scouted for the load vehicles and coordinated the route of travel to avoid detection. Bundles of marijuana, smuggled across the river into Quemado were transported to stash houses in Eagle Pass, TX. From there, the marijuana was transported to stash houses in San Antonio and Austin where it would be further broken down and distributed to other locations. Evidence presented during the trial also showed that Benitez-Reynoso attempted to influence the testimony of witnesses.
On July 31, 2013, Benitez-Reynoso was arrested in Eagle Pass while scouting for a load of marijuana. He will remain in federal custody pending sentencing. Sentencing is scheduled for February, 2014, in Del Rio.
This case was investigated by special agents with the Federal Bureau of Investigation, Homeland Security Investigations and Drug Enforcement Administration together with the U.S. Border Patrol, U.S. Marshal Service, Austin Police Department, Houston Police Department, and Brookshire Police Department.Falmouth Man Sentenced to over 10 Years on Cocaine and Firearms ChargesRead the Press Release
Contact: Julia M. Lipez
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Adam
White, 27, of Falmouth, Maine, was sentenced today in U.S. District Court to 130 months in
prison for possession with intent to distribute more than 500 grams of cocaine and possession of
a firearm in furtherance of a drug trafficking crime. White also was sentenced to 5 years of
supervised release. White pleaded guilty in June 2014.Court records reveal that on February 12, 2013, law enforcement officers stopped
White’s vehicle in Portland after investigation had revealed that he planned to conduct a drug
transaction. The officers found about 400 grams of cocaine in the trunk of the car and a handgun
and loaded magazine near the driver’s seat. Officers searched White’s home in Falmouth later
that day and seized about 3 kilograms of cocaine, over $13,000 in cash, other items consistent
with drug trafficking and a loaded handgun.The investigation was conducted by the Maine Drug Enforcement Agency; the U.S. Drug
Enforcement Administration; the Maine State Police; and the Portland, South Portland and
Falmouth Police Departments.Fajita Grill Owners Sentenced for Hiring Undocumented Aliens and False StatementsRead the Press Release
Contacts: Julia M. Lipez and James W. Chapman, Jr.
Assistant United States Attorneys
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
brothers, Guillermo Fuentes of Westbrook, Maine and Hector Fuentes of Waterville,
Maine, were sentenced today in U.S. District Court for hiring ten or more undocumented
aliens in a twelve-month period and making false statements. Guillermo Fuentes was
sentenced to 37 months in prison to be followed by 2 years of supervised release. Hector
Fuentes was sentenced to 30 months in prison to be followed by 1 year of supervised
release. Both were ordered to forfeit over $48,000 that was seized in connection with the
investigation. The defendants pleaded guilty on June 16, 2014.Court records reveal that the charges relate to the hiring of undocumented workers at
the Fajita Grill restaurant in Westbrook, Maine, and to post-arrest statements the defendants
made to law enforcement officers in September 2011 in which they falsely stated, among
other things, that federally required documentation regarding the immigration status of
employees had been properly completed.The investigation was conducted by the U.S. Immigration & Customs Enforcement’s
Homeland Security Investigations and the U.S. Department of Labor, Office of Inspector
General.Erie Man Pleads Guilty to Child Exploitation ChargeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, United States Attorney David J. Hickton announced today.
Graham K. Yahn, 27, pleaded guilty to one count before United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Yahn received and possessed computer images depicting minors engaging in sexually explicit conduct.
Judge Cercone scheduled sentencing for February 23, 2015 at 3:00 p.m. The law provides for a total sentence of 20 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 continued Yahn on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation that led to the prosecution of Yahn.
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.justice.gov/psc.
Erie Felon Sentenced to 3 Years in Prison for Illegally Possessing GunRead the Press Release
ERIE, Pa - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 36 months in jail on his conviction of violating federal firearms laws, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on George Henry Sharp, 38.
According to information presented to the court, Sharp possessed a firearm while being a convicted felon.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Erie Police Department for the investigation leading to the successful prosecution of Sharp.
Drug Courier Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Jose Mauricio Lopez, 46, of Houston, Texas, was sentenced in federal court to 70 months imprisonment for his role in driving a load of cocaine and heroin from Texas through Baldwin County in route to Florida. Court documents reflect that Lopez’s vehicle was stopped on I-10 by a Baldwin County sheriff’s deputy for following too closely. Lopez was the sole occupant of the vehicle and the ensuing investigation resulted in the discovery of 12.9 kilograms of cocaine and 2.4 kilograms of heroin, all concealed in the fuel tank of the vehicle. Lopez entered a guilty plea to conspiracy to possess with intent to distribute cocaine and heroin in April of 2014 and was sentenced today by United States District Court Judge Callie V. S. Granade.
The judge also ordered that Lopez serve a three-year term of supervised release, to begin when he is discharged from his prison sentence, and that he pay $100 in special mandatory assessments. No fine was imposed.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, and the Drug Enforcement Administration. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
Dominican National Sentenced for Aggravated Identity TheftRead the Press Release
BOSTON – A Dominican national living in Peabody was sentenced to jail today on charges that he used the identity of another man to obtain unemployment benefits.
Renato De La Cruz, 40, was sentenced by U.S. District Court Judge Richard G. Stearns to 25 months in prison and ordered to pay $33,164 in restitution to the state and federal governments. In June 2014, De La Cruz was convicted following a three-day jury trial of theft of public money, use of a falsely-obtained social security number, and aggravated identity theft.
In 1993, De La Cruz entered the country illegally and purchased the identifying information of a Dominican man who was living lawfully in New York City. De La Cruz used that information to obtain a Social Security Number and then moved to Massachusetts. As an illegal alien, he was not authorized to work, but he used the Dominican man’s identity to do so. Then, between June 2011 and October 2012, De La Cruz used the Dominican man’s identity to obtain unemployment benefits to which he was not entitled.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations; Cheryl Garcia, U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations, New York Regional Office; and Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Office, made the announcement today. The case is being prosecuted by Brian Pérez-Daple and Robert E. Richardson of Ortiz’s Major Crimes Unit.
Delaware Man Sentenced to 46 Months for Role in False Tax Refund ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Festus Frimpong, age 19, of Newark, Delaware, was sentenced today by the Honorable Leonard P. Stark, United States District Judge for the District of Delaware, to 46 months imprisonment and full restitution. The defendant pleaded guilty to violations of 18 U.S.C. § 286 (False Claims Conspiracy) and 18 U.S.C. § 1029(a)(3) (Access Device Fraud), in May, 2014. The defendant is a citizen of Ghana, and he faces deportation at the conclusion of his term of imprisonment.
The defendant participated in a tax fraud conspiracy involving the filing of more than 300 false individual federal income tax returns with the Internal Revenue Service, using stolen identities. The investigation uncovered more than 1,000 potential victims. The returns sought refunds of more than $1.7 million. The defendant’s role in the conspiracy involved receiving and distributing stolen identity information, including names, addresses, dates of birth, and social security numbers to other co-conspirators. The defendant also opened bank accounts to receive the proceeds of refunds generated by the false tax returns.
U.S. Attorney Oberly gave the following comments: “It is gratifying to see the United States District Court, Judge Stark, hand down a sentence of nearly four years of incarceration. Defendants like Mr. Frimpong deserve such sentences and subsequent deportation when applicable. The American public, the ultimate victims in schemes like this need to know that defendants who engage in activities such as this will be prosecuted as felons and incarcerated. This District is committed to vigorously prosecuting defendants like Mr. Frimpong.”
This case is the result of an ongoing investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration Office of the Inspector General. This case was prosecuted by Assistant United States Attorney Jennifer Welsh.
Defendant Sentenced on Federal Firearm ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces today that Rodriquez Keandre Clayton of Demopolis was sentenced following a July 2014 guilty plea to a charge of being a prohibited person in possession of a firearm. Clayton was previously convicted of Assault, Second Degree on December 19, 2013, in the Circuit Court of Marengo County, Alabama. By virtue of this conviction Clayton is prohibited from possessing firearms or ammunition. Clayton knowingly possessed a Bryco Arms .380 semi-automatic pistol on May 3, 2014.
Possession of a firearm or ammunition by a previously convicted felon is a violation of Title 18, United States Code Section 922(g)(1). Chief United States District Court Judge William H. Steele imposed a 52 month sentence of imprisonment, to be followed by 3 years supervised release.
This case was investigated by Special Agent Nicholas P. Murphy of the Bureau of Alcohol, Tobacco, Firearms & Explosives, with assistance from members of the Demopolis Police Department.
Defendant Arraigned on Tax Fraud ChargesRead the Press Release
NEWNAN, Ga. - Damian Alarcon-Morales has been arraigned for fraudulently using the identities of Mexican nationals to obtain income tax refunds. Alarcon-Morales was indicted by a federal grand jury on October 14, 2014.
“This defendant is charged with engaging in a cross-border scheme to defraud the tax system of over $700,000 in fraudulent refunds,” said United States Attorney Sally Quillian Yates. “Attempts to profit from fraudulent tax returns are increasing, and we will continue to aggressively investigate and prosecute these cases.”
“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS Criminal Investigation. “Individuals who devise schemes to steal public money face federal prosecution and federal prison.”
According to United States Attorney Yates, the charges, and other information presented in court: On September 15, 2014, Alarcon-Morales was found in possession of federal income tax returns, Internal Revenue Service correspondence, Mexican identification documents, and handwritten notes. The documents contained personal identifiers that corresponded to over 200 individuals, most of whom are Mexican nationals. In most cases, the Mexican identification documents were used to obtain Individual Taxpayer Identification Numbers (“ITIN”) which are assigned to foreign nationals and others not eligible for Social Security Numbers, but who are required to file United States tax returns.
The identifiers in Alarcon-Morales’ possession were linked to at least 175 fraudulent tax returns filed between 2011 and 2014. Based upon these returns, the IRS issued over $700,000 in tax refund checks, which were dispersed to Alarcon-Morales and others. This conduct is commonly referred to as Stolen Identity Refund Fraud.
Damian Alarcon-Morales, 31, of Newnan, Ga., was arraigned before United States Magistrate Judge Justin S. Anand.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service - Criminal Investigation. If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorney Shanya J. Dingle is prosecuting the case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Newnan Division is http://www.justice.gov/usao/gan/.
Davis Man Found Guilty of Bank Fraud, Jury Finds for Forfeiture of $3.2 Million in AssetsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ROY LYNN WESBERRY, age 55, of Davis, Oklahoma was found guilty of Conspiracy to Commit Bank Fraud and four (4) counts of Bank Fraud by a federal jury on Monday, October 20, 2014. The jury also found that the defendant should forfeit $3,200,000.00 in assets as part of any sentence imposed.
The defendant was indicted in February, 2014 and charged with Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Section 1344 and 4 counts of Bank Fraud, in violation of Title 18, United States Code, Sections 1344 and 2.
The Indictment alleged that from on or about February 1, 2011, through February 28, 2011, the exact dates unknown to the Grand Jury, ROY LYNN WESBERRY, defendant herein, and others unknown and known to the Grand Jury, knowingly conspired, agreed and confederated to execute and attempt to execute, a scheme and artifice to defraud First National Bank of Davis, a federally insured national bank.
The trial began with testimony on October 15, 2014 and concluded with closing arguments and jury deliberations on Monday, October 20, 2014.
Testimony at the trial established that WESBERRY and W.A. “Dub” Moore, President of First National Bank of Davis (FNB), committed bank fraud in an attempt to hide from bank examiners, large amounts of loans to WESBERRY from First National Bank of Davis.
Additional evidence proved that during a bank examination on February 7, 2011, the Office of Comptroller of Currency (OCC) discovered the WESBERRY loans. Those loans caused the bank to be critically undercapitalized and on March 11, 2011 FNB was closed and the Federal Deposit Insurance Corporation was named receiver of the bank.
W.A. “Dub” Moore pled guilty to bank fraud on February 24, 2014. He is currently awaiting sentencing.
The charges are a result from an investigation by the United States Department of Agriculture, Office of Inspector General and the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the trial and ordered the completion of a presentence investigation report. The defendant was released while awaiting sentencing.
Assistant United States Attorneys Melody Nelson and Tom Wright represented the United States.
Colorado Man Pleads Guilty to Child Pornography OffensesRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that David
William Burkman, 30, of Canon City, Colorado, pled guilty today in United States District
Court to sexually exploiting a child and transporting child pornography.According to court records, in March of this year, Burkman engaged in sexually explicit
conduct with a six-year-old girl and took photographs of the conduct. In April, Burkman sent an
email message to the undercover email account of a Special Agent with Homeland Security
Investigations in Maine. Attached to the email was one of the photographs of the girl. Burkman
was arrested in May and a search warrant was executed at his residence. During an interview
after his arrest, he admitted engaging in sexual activity with the six-year-old girl, taking
photographs of the activity, and sharing the photographs online.
Burkman faces a sentence of no less than 25 years and no more than 50 years of
imprisonment, a fine of up to $250,000, and supervised release of up to life on the sexual
exploitation charge. He faces a sentence of no less than 15 years and no more than 40 years of
imprisonment, a fine of up to $250,000, and supervised release of up to life on the transportation
charge. Burkman’s mandatory minimum and maximum sentences on both charges are increased
because of a prior child pornography conviction. He will be sentenced after the completion of a
presentence investigation report by the United States Probation Office.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations and the Colorado Springs Police Department.Chinese Restaurant Owner Pleads Guilty to Harboring Foreign WorkersRead the Press Release
KANSAS CITY, KAN. - A man who owned Chinese restaurants in Olathe and Kansas City, Mo., pleaded guilty Monday to conspiring to employ and harbor workers who were in the United States illegally, U.S. Attorney Barry Grissom said. Three other defendants also pleaded guilty to federal charges.
The following defendants entered guilty pleas:
Wei Liu, 41, Olathe, Kan., pleaded guilty to one count of conspiracy to harbor illegal aliens for private financial gain. He was the owner of Wei’s Super Buffet on South Strang Line Road in Olathe, Kan., as well as Wei’s Super Buffet No. 2 on Wornall Road in Kansas City, Mo.
Xiang Liu, 36, Olathe, Kan., pleaded guilty to one count of making a false statement to agents of the Department of Homeland Security. She was Wei Liu’s wife, and she helped manage the business.
Huiqing Liu, 25, Olathe, Kan., pleaded guilty to one count of aiding and abetting wire fraud. She is Wei Liu’s sister.
Bin Liu, 40, pleaded guilty to making a false statement to agents of the Department of Homeland Security. He lived at Wei Liu’s residence in Olathe.A fourth defendant, Huiming Liu, 43, was sentenced Monday to time served, which was approximately 10 months. She pleaded guilty to one count of failing to depart from the United States after being ordered to do so. She is Wei Liu’s sister.
In his plea, Wei Liu admitted that he employed at least 12 illegal aliens at his two restaurants. He paid them in cash and provided housing for them without charging them for the housing.
The defendants, who will be scheduled for sentencing at a later date, are facing the following penalties:
Wei Liu faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Xiang Liu faces a maximum penalty of five years and a fine up to $250,000.
Huiqing Liu faces a maximum penalty of 20 years and a fine up to $250,000.
Bin Liu faces a maximum penalty of five years and a fine up to $250,000.Grissom commended the Department of Homeland Security (DHS), Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Kansas Department of Labor, the Missouri Department of Labor and Assistant U.S. Attorney Scott Rask for their work on the case.
Chinese National Sentenced to 15 Months in Prison in Scheme to Fraudulently Obtain Technology Products from U.S. CompaniesRead the Press Release
Sought to Fabricate an Infrared Detector for Night Vision,
Missile Detection and other Military Applications
Greenbelt, Maryland – U.S. District Judge Roger W. Titus sentenced Zhenchun Huang, a/k/a Ted Huang, age 51, a Chinese national and naturalized U.S. citizen, formerly residing in Clarksville, Maryland, today to 15 months in prison, followed by three years of supervised release, for false personation of a federal employee and obstruction of justice, in connection with a scheme to fraudulently obtain technology products from U.S. companies for export to China.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Rick Shimon, Special Agent in Charge, U. S. Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement.
According to his plea agreement, Huang worked as a contract scientist at the National Aeronautics and Space Administration’s (NASA) Goddard Space Flight Center in Greenbelt from February 1995 to June 2001. Thereafter, he consulted on a limited basis until October 2003 to provide as-needed assistance on a specific Goddard project.In April 2001, Huang incorporated Allray in Maryland for the stated purpose of forming joint ventures with Chinese governmental and private entities to research, develop and distribute telecommunication and information technology products. Though Allray’s principal place of business was listed as Huang’s place of residence, its base of operations was located in China.
During the latter part of 2003 and into early 2004, in an effort to obtain technological components for use by Allray, Huang falsely represented to three U.S. companies that he was employed by NASA and was working on a joint project between NASA and Allray. No such joint project existed. The components which Huang sought included cadmium zinc telluride (CZT) and mercury cadmium telluride (MCT) wafers, considered dual-use technology subject to U.S. export controls. These products were unrelated to Huang’s former work at NASA.
In order to make it appear as though NASA was involved in procuring these products, Huang directed that purchased items be shipped to an associate employed at Goddard; used a Goddard email account to communicate with the companies and subsequently redirect emails to his personal email account; faxed (or had faxed) a purchase order from a number associated with Goddard; and presented his former business card to companies that identified him as a contract employee of NASA/Goddard.
In late October 2003, as a result of his false representations, Huang obtained five CZT wafers from Company 1 and four silicon wafers from Company 2. Huang directed his associate working at Goddard to ship two of the CZT wafers to Company 2 so it could apply a specific growth process to add a layer of MCT to the wafers. Huang also directed his associate to buy 10 additional CZT wafers for $10,620 from Company 3.
Company 3 subsequently determined that Allray was a Chinese company headed by Huang, and that the shipping/billing address provided for the purchase was a residential address. Accordingly, Company 3 did not sell the CZT wafers, and the MCT wafers were never manufactured. If successful, the MCT growth process requested by Huang would have fabricated a type of infrared detector suitable for military applications, such as night vision and missile detection, that would have been controlled for export to China. The 10 CZT wafers sought from Company 3 were similarly controlled for export.
In the fall of 2005, Huang entered into an agreement with company X, which was co-founded by his associate, to build a prototype ultraviolet non-line-of-sight communications system for Allray. From December 2005 to April 2006 and in connection with its agreement with Huang, company X purchased 34 ultraviolet light emitting diodes (UV/LEDs) from Company 6, at a total cost of $3,556. The technical specifications of the purchased UV/LEDs, and the manner in which they were to be used, suggested an application more consistent with a covert communications device. In early May 2006, the associate demonstrated to Huang a prototype of the device being built for Allray. At that time, Huang was given two of the diodes obtained from Company 6.
On May 8, 2006, U.S. Customs officials at O’Hare International Airport in Chicago inspected Huang and his luggage just prior to his outbound flight to China. Two of the UV/LEDs purchased from Company 6 were found in Huang’s luggage. Huang made false statements regarding who had given him the diodes, what they were worth, what company had manufactured them, and how they would be used in China. He also provided false information regarding the technical specifications of the diodes.
Huang subsequently directed his wife not speak to, or ask, anyone about what had happened at the airport; to say she did not know anything if questioned; to throw away the box that had originally contained the UV/LEDS found in his luggage; and to clean out their residence. In response, his wife threw away the UV/LED box and certain Allray documents in their home. She deleted all Allray-related files from their home computer, but saved certain Allray files on a thumb drive. The government recovered some of the documents, including identifying and financial information for Allray’s investors in the United States, Allray’s IPO plan, a 2006 PowerPoint presentation charting Allray’s accomplishments in China, and an article on a short-range, non-line-of-sight ultraviolet communication device.
Upon learning of the government’s investigation of the scheme, Huang fled to China and was a fugitive until his arrest in London in December, 2013. Feng Yan, age 46, formerly of Ellicott City, Maryland, was also charged by indictment for his alleged participation in the scheme and is currently a fugitive.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore and Department of Commerce for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who is prosecuting the case.Charleston Man Pleads Guilty to Heroin DistributionRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced today that Jon Paul Clements, 33, of Charleston, West Virginia, plead guilty in federal court in Charleston to four counts of distributing heroin. Clements admitted that on July 7, 8, and 9, 2014, and August 19, 2014, he sold heroin to a person who was cooperating with the Metropolitan Drug Enforcement Network Team (MDENT). The drug deals took place near Ruffner Avenue on Charleston’s East End.
Clements faces up to 30 years in prison and a 6 year term of supervised release when sentenced on January 28, 2015.
MDENT was responsible for the investigation of the case. The case was prosecuted by Assistant United States Attorneys Monica D. Coleman and Eric Bacaj. This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Canadian Drug Trafficker Sentenced to 21 Years in PrisonRead the Press Release
PHILADELPHIA- Thinh Hung Le, 53, of Toronto Canada, was sentenced to 252 months in prison by the Honorable Juan R. Sanchez. On June 17, 2014, a jury found Le guilty of a variety of drug importation and distribution charges. The evidence at trial proved that Le smuggled large quantities of ecstasy pills and marijuana from Canada to Philadelphia in 2006. Le was subsequently indicted and extradited from Canada.
Specifically, investigators with the Department of Homeland Security (HSI) seized three shipments of drugs which Le sent to his customer in Philadelphia. On April 4, 2006, the HSI investigators seized approximately 105 pounds of marijuana. On July 30, 2006, the HSI investigators seized approximately 26,000 ecstasy pills containing both methamphetamine and MDMA. On October 23, 2006, the HSI investigators seized approximately 10,000 ecstasy pills. In order to determine Le’s identity, the HSI investigators requested assistance from the Toronto Police Service. Thereafter, two undercover Toronto police law enforcement officers met with Le pretending to be drug dealers from Philadelphia. Le explained to the undercover officers that he could supply them with 100,000 ecstasy pills within three days and provide a custom “brand” for the pill. Le further explained that he could manufacture the pills so that the high would last either 4 hours or 6 hours.
The case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations in conjunction with the Toronto Police Service. Additional assistance was provided by the DEA, the Philadelphia Police Department, the Pennsylvania State Police, the Royal Canadian Mounted Police, and the York (Canada) Regional Police Department.
The case was prosecuted by Assistant United States Attorney Robert Livermore. Extradition assistance was provided by the United States Department of Justice, Office of International Affairs.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525California Man Sentenced to 137 Months for Possession of Counterfeit Access Devices and Firearm PossessionRead the Press Release
BOISE – Lajai Lamar Pridgette, 29, of Sacramento, California, was sentenced today in United States District Court to 137 months in prison followed by three years of supervised release for possessing counterfeit access devices; possession of counterfeit access device making equipment; possession of a firearm by a prohibited person; and transportation of a stolen vehicle, U.S. Attorney Wendy J. Olson announced. United States District Judge Edward J. Lodge also ordered Pridgette to pay $13,709.16 in restitution, as well as forfeiture of contraband and property. He was found guilty on all counts after a five- day jury trial in July.
According to evidence presented at trial, Lajai Pridgette was arrested the evening of October 30, 2013, by an Idaho State Trooper in Gooding County who was on the lookout for a suspect driving a Ford Mustang involved in two separate drive-by shootings on Interstate 84 earlier that evening. Pridgette was the sole occupant of the Mustang. While searching the Mustang, law enforcement officers found the firearm that had been used in the two shootings. One shot had narrowly missed occupants of a car in Ada County; the other narrowly missed the occupant of a pickup truck in Elmore County. As a convicted felon, Pridgette was prohibited from possessing the firearm. Also during the search of the Mustang, officers found 67 counterfeit and unauthorized credit cards, a credit card embosser, a stolen laptop computer, and a magnetic strip reader/writer. The 2013 Mustang that Pridgette was driving was reported stolen by a rental car company.
“Justice is well-served by this serious and significant sentence,” said Olson. “Lajai Pridgette, through both his violent conduct and his intent to steal from others with fraudulent credit cards, posed a serious threat to our Idaho communities. That threat was ended through outstanding, cooperative police work by the Idaho State Police, the Elmore County Sheriff’s Office, the United States Secret Service, and the Bureau of Alcohol, Tobacco and Firearms. I commend the thorough investigation and detailed prosecution of this case.”
Businessman Admits Stealing $100,000 Worth of Water from the Jersey City Municipal Utilities AuthorityRead the Press Release
NEWARK, N.J. – The owner of Reliable Wood Products (Reliable Wood) today admitted his role in a conspiracy to steal at least $100,000 worth of water from the Jersey City Municipal Utilities Authority (JCMUA), U.S. Attorney Paul J. Fishman announced.
Nicholas Vene, 43, of Holmdel, New Jersey, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of conspiracy to commit mail fraud.
According to the documents filed in this case and statements made in court:
From January 2007 through March 31, 2012, Vene and others diverted the water flowing from a Jersey City water pipe to 1 Caven Point in Jersey City and away from the water meter on that pipe. United Water New Jersey was responsible for collecting payment on behalf of the JCMUA for water used by residents and businesses in Jersey City, and Vene’s actions resulted in United Water obtaining a false calculation of the volume of water used at 1 Caven Point by under-reporting such usage. At 50 Caven Point, another Reliable Wood location, Vene was aware of the use of a water pipe that was unmetered. In early 2012, Vene caused monthly payments by check to be mailed to the JCMUA that did not accurately cover the actual cost of water used by Reliable Wood. He and others defrauded the JCMUA of at least $100,000.
The conspiracy charge to which Vene pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Jan. 26, 2015.
U.S. Attorney Fishman credited special agents from the FBI, under direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. He also thanked the Hudson County Prosecutor’s Office for its role in the case.
The government is represented by Assistant U.S. Attorney David L. Foster of the U.S. Attorney’s Office, Special Prosecutions Division, in Newark.
14-379
Defense counsel: Joseph A. Hayden Jr. Esq., Roseland, N.J.Vene, Nicholas Information
Boise Man Pleads Guilty to Bankruptcy Fraud for Concealing Interest in BusinessRead the Press Release
BOISE – Steven Gregory, 66, of Boise, pleaded guilty today in United States District Court to one count of bankruptcy fraud by asset concealment, U.S. Attorney Wendy J. Olson announced. Gregory’s sentencing is scheduled for January 7, 2015, before Chief U.S. District Judge B. Lynn Winmill.
According to the plea agreement, Gregory filed bankruptcy in 2010 and during that bankruptcy proceeding, knowingly and fraudulently concealed a five percent ownership interest in a company. During the pendency of the bankruptcy case, Gregory demanded, and received, a payout of that interest in the amount of $330,464.19. However, Gregory failed to disclose both the ownership interest and the payment in his filed bankruptcy schedules and statements. Gregory intentionally and fraudulently concealed the interest and the payment from the Bankruptcy Court, the trustee, and his creditors.
A violation of bankruptcy fraud concealment is punishable by a term of imprisonment of up to five years, a term of supervised release of not more than three years, a maximum fine of $250,000, and a special assessment of $100. The Court also may order restitution to the victims of the crime.
The case was investigated by the Internal Revenue Service.
Belchertown, Ma Man Sentenced to 41 Months in Federal PrisonRead the Press Release
Central Massachusetts man sentenced to federal prison for distributing heroin in
North CountryPLATTSBURGH, NEW YORK – On October 14, 2014, ERNESTO MATOS, 33, of Belchertown, Massachusetts, was sentenced to 41 months in federal prison by Senior United States District Court Judge Thomas J. McAvoy in United States District Court in Albany, New York announced United States Attorney Richard S. Hartunian and Drug Enforcement Administration Acting Special Agent in Charge James J. Hunt.
“Heroin addiction and overdoses have been on the rise in our district. Eliminating the supply and making it more difficult to obtain are two essential steps to reducing the tragedies of addiction and overdose,” stated United States Attorney Richard S. Hartunian. “We will continue to work with our federal, state and local law enforcement partners to rid our communities of this horrible scourge.”
DEA Acting Special Agent in Charge Hunt stated, “Heroin has hit our towns hard. Over one hundred people die a day due to opioid overdoses and this sentencing exemplifies law enforcement’s commitment to ridding our streets of heroin and diverted pain medication.”
“With the assistance of the Drug Enforcement Administration agents, we were able to dismantle a drug distribution organization that was responsible for bringing a large amount of heroin to our area,” said Chief Christopher Premo, Malone Village Police Department. “We were also able to trace the heroin back to Holyoke MA, identifying the supplier to local distributers, further interrupting the flow of illegal drugs.”
Matos pled guilty in May 2014 to conspiracy to possess with intent to distribute and to distribute heroin. As part of that plea agreement, Matos admitted to distributing at least 100 grams of heroin. The charges stemmed from Matos’ role as a supplier of heroin to local dealers in the Malone area. The sentence also includes a three-year term of supervised release following Matos’ incarceration and a $100 special assessment.
The case was investigated by the Drug Enforcement Administration, New York State Police, Massachusetts State Police, Belchertown Police Department, Malone Village Police Departmentand the Franklin County District Attorney’s Office. Assistant United States Attorney Katherine Kopita prosecuted the case.
Baltimore Cocaine Dealer Resentenced to over 10 Years in PrisonRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Travis Gaines, age 34, of Baltimore, Maryland, today to 130 months in prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine. Judge Blake also found that Gaines is a career offender based on previous narcotics convictions.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According their plea agreements, Gaines and Bolden conspired with Shawn Malone, Karl McDonald and others to obtain cocaine from sources of supply in Arizona and Texas and to distribute those drugs in Baltimore. Once the cocaine arrived in Baltimore, it would be distributed to Gaines and other wholesale customers who would redistribute it to their customers. McDonald converted the powder cocaine to crack cocaine for street level distribution and operated a distribution shop in Baltimore where the crack cocaine was sold. During the course of the investigation DEA intercepted the telephone and electronic communications of several members of the conspiracy. In addition, as a result of several search warrants executed on June 6, 2013, the DEA recovered approximately 250 grams of cocaine, as well as packaged cocaine, from the main stash house of the organization.
Gaines and Bolden admitted that as part of the conspiracy they were responsible for the distribution of between five and 15 kilograms of cocaine.
On August 14, 2014, U.S. District Judge William D. Quarles, Jr. sentenced Gaines to 151 months in prison, but vacated the sentence a few days later and the case was reassigned to Chief Judge Blake.
Karl McDonald, age 30, and Antoine Bolden, age 37, both of Baltimore, pleaded guilty to their roles in the conspiracy and were sentenced to 151 months and 84 months in prison, respectively. Shawn Malone, age 31, of Baltimore, pleaded guilty to his role in the drug distribution conspiracy and is awaiting sentencing.
United States Attorney Rod J. Rosenstein commended the DEA, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney James T. Wallner, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Aplington Man Sentenced to over 16 Years for Possessing Child PornographyRead the Press Release
A man who possessed child pornography was sentenced today to over 16 years in federal prison.
Jeremiah Romo, age 21, of Aplington, Iowa, received the sentence after a May 27, 2014, guilty plea to one count of possession of child pornography. At the plea hearing, Romo admitted that he possessed child pornography, including one or more depictions of prepubescent children. He also admitted that, in 2008, he was adjudicated delinquent for sexual abuse in the second degree.
Romo was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Romo was sentenced to 200 months’ imprisonment. A special assessment of $100 was imposed, and Romo must also serve a 20-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Butler County Sheriff’s Office, and the Champaign County, Illinois, Sheriff’s Office.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-3011.
Anchorage Woman Sentenced for Passport and PDF FraudRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that Maualuga Leaana, 43, of Anchorage was sentenced to five years on probation for committing passport fraud. Leaana was indicted in April 2014 on federal charges that she committed identity theft and falsely claimed U.S. citizenship to obtain various federal and state benefits.
The Indictment charged Leaana with one count of passport fraud, nine counts of making false claims of U.S. citizenship, and one count of aggravated identity theft. Leaana is a citizen of Samoa, formerly known as Western Samoa. Citizens of Samoa are not U.S. citizens, in comparison to those born in American Samoa, who do hold U.S. nationality by birth.
Leaana pled guilty to the passport fraud charge on July 24, 2014, and admitted applying for and obtaining a U.S. passport in the name of her sister. She also admitted falsely claiming U.S. citizenship on various applications for benefits, including Alaska Permanent Fund Dividends, unemployment compensation, and subsidized housing, as well as obtaining identification from the Alaska Division of Motor Vehicles.
In addition to five years’ probation, United States District Court Judge Timothy M. Burgess ordered the defendant to spend four months on home confinement; make restitution to the Alaska Permanent Fund in the amount of $14,441 for Permanent Fund Dividends she illegally obtained between 2003 and 2013, and pay $17,392 to the State of Alaska Department of Labor for unemployment benefits that she unlawfully obtained.
The case was investigated by the U.S. Department of State, Diplomatic Security Service; the Social Security Administration, Office of the Inspector General, Office of Investigations; the Department of Homeland Security, Homeland Security Investigations, Immigration and Customs Enforcement; the Alaska Department of Revenue, Criminal Investigations Unit, and the Alaska Department of Labor and Workforce Development.Albuquerque Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ALBUQUERQUE – Faviano Lopez, 28, of Albuquerque, N.M., pled guilty this morning to receipt of a visual depiction of a minor engaged in sexually explicit conduct under a plea agreement with the U.S. Attorney’s Office.
Lopez was arrested on federal child pornography charges on July 11, 2014, based on a criminal complaint after he was transferred from state custody into federal custody. According to the criminal complaint, the investigation into Lopez was initiated by the Homeland Security Investigations (HSI) and the New Mexico State Police in Nov. 2013, after the New Mexico State Police obtained information indicating that an IP Address subscribed to the residence in which Lopez was living was being used to share video and image files consistent with child pornography. In Feb. 2014, HSI and the Albuquerque Police Department executed a search warrant at Lopez’s residence where they seized computer and computer-related media containing video and image files consistent with child pornography from Lopez’s bedroom.
During today’s proceedings, Lopez entered a guilty plea to a felony information charging him with receipt of child pornography. In his plea agreement, Lopez admitted receiving child pornography from May 2013 to Feb. 2014, by downloading images and videos of child pornography using a peer to peer file sharing system.
Lopez has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Lopez faces imprisonment for a period not less than five years and not more than 20 years followed by a period of supervised release to be determined by the court. Lopez will have to register as a sex offender after completing his prison sentence.
This case was investigated by the Albuquerque office of HSI, the New Mexico State Police and the Albuquerque Police Department, all of which are members of the New Mexico Internet Crimes Against Children (ICAC) Task Force, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Akron Doctor Pleads Guilty to Illegally Prescribing PainkillersRead the Press Release
An Akron physician pleaded guilty to illegally prescribing hundreds of thousands of doses of painkillers and other pills to customers for no legitimate medical purpose, even after he learned some customers had died from overdose-related deaths, law enforcement officials said.
Adolph Harper, Jr., 64, pleaded guilty to one count of conspiracy to traffic drugs, four counts of health care fraud and 16 counts of drug trafficking. He is scheduled to be sentenced Jan. 27.
Also today, Patricia Laughman, 52, of Barberton, Ohio, pleaded guilty to one count of conspiracy to traffic drugs and 14 counts of drug trafficking, while Adria Harper, 35, of Akron, pleaded guilty to one count of conspiracy to traffic drugs and 25 counts of drug trafficking.
Tequilla Berry, 35, of Akron, pleaded guilty earlier this year to one count of conspiracy to traffic drugs and seven counts of drug trafficking.
Together, they distributed hundreds of thousands of doses of prescription medications—including Oxycontin, Percocet, Roxicet, Opana, and others—from Adolph Harper’s medical officers in Akron between 2009 and 2012, according to court documents.
“Doctor Harper is simply a drug dealer who happened to wear a white coat and worked from a medical office instead of a street corner,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “His actions destroyed lives and families.”
Steven D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, said: “Just because you have a prescription pad does not give you a license to deal drugs. Not only did this doctor violate the physician’s oath but he also allowed others in his office to abuse his medical privileges.”
All four defendants conspired to distribute addictive controlled substances, including prescription painkillers and anti-anxiety medication, outside the usual course of professional practice and without any legitimate medical purpose, according to court documents.
Adolph Harper’s customers, many of whom were drug addicts exhibiting clear signs of drug addiction during their visits to his office, came to his office and received “prescriptions” for addictive prescription medications without being examined by Harper and often without seeing him at all, according to the court documents.
Harper continued to distribute prescriptions for controlled substances after he learned that some of his customers had died from overdose-related deaths, according to the court documents.
Adria Harper, Laughman and Berry distributed prescriptions to these customers when Adolph Harper was out of the office and also used Adolph Harper’s prescription pad to distribute prescriptions for addictive painkillers to themselves, according to the court documents.
Additionally, Adolph Harper executed four separate schemes to defraud health insurance providers by (1) submitting insurance claims for services using a higher billing code than the service justified; (2) submitting insurance claims for unperformed services; (3) billing an insurance provider for a service after collecting a cash payment for the same service; and (4) causing the submission of insurance claims for prescriptions for controlled substances that were issued outside the usual course of professional practice and not for a legitimate medical purpose, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Margaret A. Sweeney, Edward F. Feran, and Rebecca C. Lutzko following an investigation by the Federal Bureau of Investigation, the Department of Health and Human Services -- Office of the Inspector General, the Drug Enforcement Administration, the Ohio Board of Pharmacy and the Akron Police Department.
Friday 17 October 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Robert Alphonse Deschepper, III, 24, of Edwardsburg, Michigan was sentenced to 9 months imprisonment and 3 months home detention with 2 years supervised release and to pay $5,681.24 in restitution after pleading guilty to lying to a licensed firearms dealer during the acquisition of firearms. According to documents filed in this case, on April 28, 2014, Deschepper went to a licensed firearms dealer and purchased a Sig Sauer, model 1911, .45 caliber pistol and a Sig Sauer, model 1911, .22 caliber pistol. Deschepper completed an ATF Form 4473 for the purchase of these two firearms. Also on April 28, 2014, Deschepper made purchases from a gun exchange location in Mishawaka, Indiana. At that location, the defendant completed another ATF Form 4473 for the purchase of a Ruger, model 10/22 rifle, .22 caliber, a Sig Sauer, model 1911, .45 caliber pistol, and a Sig Sauer, model 1911, .22 caliber pistol. On April 29, 2014, the defendant completed another ATF Form 4473 at Midwest Gun Exchange for the purchase of a Smith & Wesson, model 637, .357 caliber revolver, a Bond Arms, model USA Defender, 410/.45 derringer and a Sig Sauer, model 938, 9mm pistol. In addition to the three firearms, Deschepper also purchased firearm accessories and ammunition. Again on April 29, 2014, the defendant came back to Midwest Gun Exchange in Mishawaka, Indiana and filled out another 4473 form. The defendant made the purchase of a Ruger, model M-14, 5.56 caliber rifle, with serial number 582-50880, a Ruger, model M-30, 7.62 x 39 caliber rifle, a Sig Sauer, model 1911, .45 caliber pistol, and a Sig Sauer, model 1911, .22 caliber pistol. Along with the firearm purchases, the defendant purchased ammunition and firearm accessories. In total, the defendant made the purchase of approximately $9,260.00 worth of firearms, ammunition and accessories from two gun store locations. Each of the total five purchases was made using a personal checking account in the name of Robert Deschepper III that had been closed in 2013 and on each of the ATF 4473 forms the defendant falsely identified his current home address. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- Brock Crowe, 39, of Delphi, Indiana was sentenced to 1 year Probation and to pay $1000 in fines after pleading guilty to knowingly possessing cocaine, a controlled substance. According to the documents filed in this case, between June 28th and July 15, 2012 Crowe knowingly possessed cocaine purchased from Jose Patlan. Crowe purchased cocaine before from Patlan and knew it was a controlled substance. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Kenny Lee, 29, of South Bend, Indiana was sentenced to 35 months imprisonments with 2 of supervised release and a $100 special assessment after pleading guilty to being a felon in possession of firearm. According to the documents filed in this case, on October 31, 2013, officers responded to a six year old boy being shot. The minor victim stated that his father Kenny Lee shot him while Lee was trying to shoot his uncle. Lee is a convicted felon (two Class D felony charges for possession of cocaine.) This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- Jose Luis Lopez, 24, of Logansport, Indiana was sentenced to time and to be deported after pleading guilty to knowingly distributing cocaine, a controlled substance. According to the documents filed in this case, on November 14, 2013, Lopez was involved with an individual in distributing cocaine in the Logansport area. On occasion, Lopez delivered cocaine to an individual he did not know was working for law enforcement. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Juan A Preciado Marquez, 34, of Mexico pled guilty to the felony offense of illegal reentry after prior deportation for an aggravated felony. This charge was filed as a result of an investigation by Homeland Security Investigations. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney David Nozick.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Darian Lyndon Brown, 36, of Merrillville, Indiana was sentenced to 2 years of probation after pleading guilty to the felony offense of mail fraud. According to documents filed in this case, Brown was caught when investigators from the insurance industry and the Federal Bureau of Investigation determined that the loss documentation he submitted in his claims utilized fraudulent entities. Brown submitted the paperwork through use of the United States mail. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Randall Stewart.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Phillip Biddle, 37, of Kendallville, Indiana was sentenced to 54 months imprisonment with 5 years supervised release after pleading guilty to the felony offense of possession of materials depicting minors engaging in sexually explicit conduct. According to documents filed in this case, on December 2 and December 3, 2011, detectives from the Whitley County Sheriff’s Department identified an internet protocol address that appeared to be sharing files containing images of child pornography. During the course of the investigation, it was determined that the holder of the suspect IP address was Biddle. On June 15, 2012, a search warrant was executed wherein several pieces of electronic media were recovered. During the forensic examination of the electronic media, images of child pornography were located on nearly all of the media recovered from Biddle’s residence. This case was the result of an investigation by Homeland Security Investigations, ICAC Task Force, Kendallville Police Department and the Whitley County Sheriff’s Department. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
- Deyante Stephens, 23, of Fort Wayne, Indiana was sentenced to 37 months imprisonment with 2 years supervised release and ordered to pay $96,534.37 in restitution after pleading guilty to the felony offense of aiding and abetting armed bank robbery. According to documents filed in this case, on or about February 14, 2013, a local bank was robbed. During the course of the investigation, it was determined that one of robbers had stolen a teller’s cell phone. Dispatch was able to determine the location of the cell phone, recovering it in a drainage ditch. A latent fingerprint was located on the telephone and identified as the fingerprint of Stephens. This case was the result of an investigation by the Federal Bureau of Investigation, Northeast Indiana Federal Bank Robbery Task Force, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
Washington Supreme Court Justice Mary Yu Speaks to U.S. Attorney’s OfficeRead the Press Release
In recognition of Hispanic Heritage Month, Washington Supreme Court Justice Mary Yu spoke to the U.S. Attorney’s Office for the Western District of Washington about her groundbreaking career in the law. Justice Yu is of Hispanic and Asian heritage and is the first openly gay member of the Washington State Supreme Court. Justice Yu’s father was an immigrant from China, her mother was from Mexico. She is also the first Latina Justice and Justice of Asian heritage.
Justice Yu talked about her childhood in Chicago, and described her decision to pursue a legal career as a way to bring positive change in the community, especially for those who are disadvantaged. Justice Yu described the sense of history she feels in the Supreme Court chambers and talked about the importance of remembering that the parties in the cases are real people, not just names on papers filed with the court.
Justice Yu was appointed by Governor Jay Inslee on May 1, 2014. Justice Yu joined the Supreme Court after more than 14 years as an accomplished trial court judge in King County Superior Court where she heard a wide variety of criminal and civil cases and presided over hundreds of adoptions and other family law matters.
Justice Yu has a deep record of service both on and off the bench, mentoring young attorneys, law clerks and students, co-chairing the statewide Minority and Justice Commission, lecturing at Seattle University, helping lead the bar association’s leadership institute for young attorneys, and serving on the board of FareStart and the advisory board for the University of Washington School of Law’s Gates Public Service Program. She has officiated hundreds of weddings and adoptions, including our state’s first same-sex weddings on the first day couples of the same-sex could legally marry in our state.
Before becoming a judge, Justice Yu served as Deputy Chief of Staff to King County Prosecutor Norm Maleng and as a deputy in the Criminal and Civil Divisions. Prior to attending law school, Justice Yu worked in the Peace and Justice Office for the Archdiocese of Chicago as staff and later appointed by Cardinal Bernardin as Director of that Office.
Justice Mary Yu was raised in Bridgeport (a south side neighborhood in Chicago). She is the first in her family to graduate from college.
Vice-President of Investment Company Sentenced in $21 Million Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Louis N. Gallo, III, 45, of Parkland, the Vice-President of Commodities Online LLC (COL), was sentenced yesterday for his participation in a $21 million investment fraud scheme.
U.S. District Judge Joan Lenard sentenced Gallo to 168 months in prison, to be followed by three years of supervised release. Judge Lenard also ordered Gallo to pay restitution of $19,919,994 to victims of the fraud scheme involving COL as well as a successor company. In addition, the sentence included a criminal forfeiture money judgment of $21,631,466, and forfeiture of Gallo’s interest in a car, two bank accounts and three properties.
Gallo pled guilty on August 8, 2014 to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. According to court documents, Gallo conspired with co-defendants James C. Howard, III, Patricia S. Saa, Michael R. Casey and others to defraud individuals who invested in COL. From approximately January 2010 through April 2011, Howard and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 700 investors. The COL investors lost $18,919,994.
According to court documents, Gallo and his co-conspirators offered investors the opportunity to participate in funding certain purported “pre-sold” commodities contracts. Gallo and his co-conspirators represented to investors that COL had a track record of profits. However, COL did not have profits. Any payments made to investors were made using funds received from newer investors.
Also according to court documents, Gallo and his co-conspirators also caused material misrepresentations to be made about the leaders of COL. Gallo and his co-conspirators represented to investors that the President of COL was an attorney, co-defendant Michael R. Casey. However, the founder, co-defendant James Howard was in charge. Also, Gallo and his co-conspirators did not disclose to investors that both Gallo and Howard had previously been convicted of federal felonies and that Gallo was still serving a term of supervised release.
According to court documents, Gallo and his co-conspirators also made material misrepresentations and omissions about the misuse of funds that COL received from investors. For example, Gallo caused at least $2.5 million to be diverted for himself and his family.
Also according to court documents, after COL was taken over by a court-appointed Receiver, Gallo participated in a similar scheme involving Global Solutions and Acquisitions LLC (GSA). Approximately 50 individuals invested about $1.1 million in GSA. The GSA investors lost about $900,000.
Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorneys Ana Maria Martinez and John P. Gonsoulin.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Unlicensed Money Transmitters Charged with Money LaunderingRead the Press Release
SAN DIEGO – San Diego-based business attorney Richard Medina Jr. and alleged co-conspirator Omar Trevino Caro Del Castillo appeared in federal court today to face allegations that they laundered almost $12 million via international financial transactions in an attempt to promote their unlicensed money transmitting business.
According to an indictment unsealed this afternoon, the defendants are charged with operating as a commercial enterprise, willing and able to transfer cash on behalf of third parties without registering with the Secretary of the Treasury, as required by Title 31, United States Code, Section 5330. In turn, the defendants’ customers availed themselves of the defendants’ ability to collect cash anywhere throughout the United States, and transmit it anywhere in the world. According to the indictment, the defendants obtained commissions for their services, extracting a fee from the millions of dollars transmitted abroad.
The indictment alleges that in an effort to mask the transmission of currency, Medina opened several “Interest on Lawyers Trust Accounts,” known as IOLTA accounts, at national financial institutions. Other co-conspirators picked up cash at various locations throughout the United States and deposited the cash into one of Medina’s IOLTA Accounts.
By depositing the money into the IOLTA Accounts, the defendants, along with their clients abroad, intended to avoid financial institutions from filing accurate Department of Treasury FinCEN Form 104, Currency Transaction Reports. Financial Institutions must file Currency Transactions Reports for all currency transactions exceeding $10,000 during any one banking day. The defendants sent their clients’ funds internationally through an informal and unlicensed transfer network, in furtherance of the conspiracy to promote the operation of the unlicensed money transmitting business.
The criminal case is assigned to U.S. District Court Judge Roger T. Benitez.
During today’s hearing, the government asked that Caro Del Castillo be held without bond based on risk of flight, and U.S. Magistrate Judge Bernard G. Skomal agreed; Medina was ordered released on $200,000 bond.
DEFENDANT Case Number: 14cr2936 Richard Medina, Jr. Age: 38 Omar Trevino Caro Del Castillo Age: 37 CHARGESMoney Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: 20 years’ imprisonment, $500,000 fine, and forfeitureOperating an Unlicensed Money Transmitting Business – Title 18 U.S.C., Section 1960
Maximum penalty: 5 years’ imprisonment, $250,000 fine, and forfeitureConspiracy – Title 18, U.S.C., Section 371
Maximum penalty: 5 years’ imprisonmentMoney Laundering – Title 18, U.S.C., Section 1956(a)(2)(A)
Maximum penalty: 20 years’ imprisonment, $500,000 fine, and forfeitureCause or Attempt to Cause Financial Institution to File CTR that Contains Material Omission or Misstatement of Fact – Title 31, U.S.C., Section 5324(a)(2)
INVESTIGATING AGENCY
Maximum penalty: 10 years’ imprisonment, $500,000 fine, and forfeitureFederal Bureau of Investigation
Drug Enforcement Administration
Internal Revenue Service*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Un Jurado Condena a un Hombre Peruano por Defraudar y Extorsionar a Clientes de Habla Hispana por Medio de Centros de Llamadas FraudulentosRead the Press Release
Un jurado en Miami condenó a un hombre de Lima, Perú, por 26 cargos de delitos mayores de conspiración, fraude e intento de extorsión, cometidos a partir de sus centros de llamadas en Perú, que mintieron y amenazaron a víctimas de habla hispana para que pagaran arreglos fraudulentos, anunció hoy el Departamento de Justicia.
Juan Alejandro Rodríguez Cuya, 35, fue condenado por un jurado después de menos de dos horas de deliberación después de un juicio de dos semanas de duración ante la Jueza Federal de Distrito Patricia A. Seitz en el tribunal federal de Miami. A mitad del enjuiciamiento, su codemandada en el juicio, María Luzula, 52, de Miami, se declaró culpable de todos los cargos contra su persona. Luzula es la madre de Cuya.
Cuya y Luzula ambos enfrentan un máximo legal de 20 años en prisión por cada cargo. Ambos demandados deben permanecer detenidos hasta que se dicten sus sentencias el 22 de enero de 2015 y el 18 de diciembre, respectivamente.
"Los demandados se aprovecharon de la comunidad de habla hispana específicamente – y el daño causado a las víctimas individuales por el fraude cometido es desgarrador", señaló la Secretaria de Justicia Auxiliar Interina Joyce R. Branda de la División Civil del Departamento de Justicia. "El Departamento de Justicia se compromete a enjuiciar a quienes defrauden a los consumidores para su propio lucro personal".
De acuerdo con las pruebas presentadas en el juicio, los empleados de los demandados en Perú utilizaron llamadas telefónicas para amenazar a víctimas de habla hispana en los Estados Unidos. Los llamantes peruanos falsamente acusaron a las víctimas de haberse negado al envío de ciertos productos y alegaron que las víctimas debían miles de dólares en multas y que serían enjuiciadas. En realidad, las víctimas nunca habían pedido estos productos y no se les había enviado nada.
Pruebas adicionales en el juicio establecieron que los empleados de Luzula y Cuya alegaron que los consumidores podían resolver las multas si pagaban de inmediato un "cargo de resolución". Se les dijo a los clientes que disputaron estos cargos de resolución que, si no pagaban, podrían ser arrestados, deportados o su propiedad podría ser confiscada. Miles de víctimas sucumbieron ante estas amenazas y pagaron cargos que no debían. Una sala telefónica en Miami cobró los cargos.
Las víctimas que atestiguaron en el enjuiciamiento mencionaron el nivel de ansiedad que las llamadas les provocaron. Las víctimas tenían tanto miedo de las amenazas que pagaron cargos a los que ni siquiera podían hacer frente.
La Secretaria de Justicia Auxiliar Interina Branda elogió al Servicio de Inspección Postal de EE.UU. por su labor de investigación y agradeció a la Fiscalía Federal para el Distrito Sur de Florida por sus aportes al caso. El caso penal fue enjuiciado por el Abogado Litigante Phil Toomajian y el Director Auxiliar Richard Goldberg de la Oficina de Protección del Consumidor de la División Civil.
Two Florida Men Indicted in Mortgage Fraud SchemeRead the Press Release
Tampa, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Guillermo Rincon (36, Miami) and Enrique Hernandez (34, Tampa) with one count of mortgage fraud conspiracy involving mail and bank fraud, and other related substantive charges. Each faces a maximum penalty of 30 years’ imprisonment for each count. The indictment also notifies the individuals that the United States is seeking a money judgment for the proceeds of the charged mortgage fraud conspiracy.
According to the indictment and court proceedings, Rincon and Hernandez participated in a mortgage fraud conspiracy in which some conspirators entered into agreements to purchase properties for amounts in excess of the original asking price. The conspirators then inserted false and fraudulent information about the various conspirator-purchasers on mortgage loan applications, or Fannie Mae Form 1003s, which were submitted in support of the loan requests. Upon the closing of each sale transaction, the conspirators used a portion of the inflated loan proceeds to pay the original asking price to the seller. The remaining excess funds—the gap amount between the original asking price and the inflated mortgage loan amount—were then shared amongst the conspirators, who allowed the purchased properties to fall into foreclosure.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency - Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant and Special Assistant United States Attorney Christopher Poor.
Two Connecticut Men Plead Guilty to Bribery Scheme Involving FBI Agent in New YorkRead the Press Release
Two Connecticut men pleaded guilty today to bribery charges, admitting that they participated in a scheme to obtain confidential, internal law enforcement documents and information from a former FBI Special Agent in White Plains, New York.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, and Justice Department Inspector General Michael D. Horowitz made the announcement.
Johannes Thaler, 51, of Fairfield County, Connecticut, and Rizve Ahmed, aka “Caesar,” 35, of Danbury, Connecticut, pleaded guilty today in White Plains, New York, federal court to bribery and conspiracy to commit honest services and wire fraud before U.S. District Judge Vincent L. Briccetti of the Southern District of New York. Both Thaler and Ahmed admitted to participating in a bribery scheme with Robert Lustyik, a former FBI Special Agent in White Plains who worked on the counterintelligence squad.
In pleading guilty, Thaler and Ahmed admitted that between September 2011 and March 2012, Thaler and Lustyik solicited bribes from Ahmed, in exchange for Lustyik’s agreement to provide internal, confidential documents and other confidential information to which Lustyik had access by virtue of his position as an FBI Special Agent. Thaler was Lustyik’s friend, and Ahmed, a native of Bangladesh, was an acquaintance of Thaler. Ahmed sought confidential law enforcement information, including a Suspicious Activity Report, pertaining to a Bangladeshi political figure who was affiliated with a political party opposing Ahmed’s views. Thaler and Ahmed admitted that Ahmed requested the confidential information to help Ahmed locate and harm his intended victim and others associated with the victim. Ahmed also sought assistance in having criminal charges against a different Bangladeshi political figure dismissed.
Thaler and Ahmed admitted that they exchanged various text messages in furtherance of the scheme, including text messages about a “contract” that would require Ahmed to pay a $40,000 “retainer” and $30,000 “monthly.” In return, Lustyik and Thaler agreed to “give [Ahmed] everything [they] ha[d] plus set up [the victim] and get the inside from the party.”
Thaler and Lustyik also exchanged text messages about how to pressure Ahmed to pay them additional money in exchange for confidential information. For example, in text messages, Lustyik told Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.” Thaler responded, “I know. It’s all right there in front of us. Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”
Additionally, in late January 2012, Lustyik learned that Ahmed was considering using a different source to obtain confidential information. As a result, Lustyik sent a text message to Thaler stating, “I want to kill [Ahmed] . . . . I hung my ass out the window n we got nothing? . . . . Tell [Ahmed], I’ve got [the victim’s] number and I’m pissed. . . . I will put a wire on n get [Ahmed and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to the victim].” Lustyik further stated, “So bottom line. I need ten gs asap. We gotta squeeze C.”
Sentencing hearings for Thaler and Ahmed are scheduled for Jan. 23, 2015.
Lustyik is scheduled for trial on Nov. 17, 2014. The charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Department of Justice’s Office of the Inspector General and is being prosecuted by Trial Attorney Emily Rae Woods of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Benjamin Allee of the White Plains Division of the U.S. Attorney’s Office for the Southern District of New York.
Twenty-three People Indicted for Canton Cocaine ConspiracyRead the Press Release
A 47-count indictment was filed in federal court charging 23 people for their roles in a conspiracy that brought and sold cocaine and crack cocaine to Canton, law enforcement officials announced.
The indictment was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office and Canton Police Chief Bruce Lawver.
"This group brought pounds and pounds of cocaine into Stark County,” Dettelbach said. “Only through the good work of the FBI, the Canton police and all our partners was the pipeline shut down.”
“These individuals brought danger and illicit drugs to the streets of Canton and the surrounding territory,” Anthony said. “The FBI will continue collaborative law enforcement efforts to rid our streets of such poison and make our communities a safer place to live.”
“These cases make a significant impact on the community through the arrest and prosecution of those responsible for the violence on our streets,” Lawver said. “By focusing on the gang members, drug traffickers and those who are responsible for the violence, we are able to form better relationships with our community as a whole.”
All those indicted are from Canton unless otherwise noted. Indicted are: James E. Walton, 39; Mario Munoz-Gonzales, 27, of Grove City; Eduardo Arredondo, 26; Jose Magueyal, 39; Raymond Jackson, 34; Marcus Houston, 39; Dardisi Alexander, 26; Darcell Anthony, 45; Dontez Lewis, 33; Abraham Joaquin, age unknown; Jack Pearson, 41; Brian Pinkney, 31; Dwight Martin, 55; Dante Harvey, 35; William Nicholson, 32; Terrance Wharton, 34, of Barberton; John Coburn, 27; Richard Taylor, 32; Clifford Cantwell III, 35; Justin Sybole, 26; Richard Crawford, 31, of Louisville, Ohio; Gregory Archer, 50, and Allen Woodson, 26.
The indictment details a two-year conspiracy in which Magueyal obtained kilogram-quantities of cocaine from Arredondo and Munoz-Gonzales. Magueyal, in turn, provided cocaine to Walton, Jackson, Houston, Alexander, Nicholson, Wharton, Joaquin, Taylor, Cantwell, Sybole, Woodson and others for distribution, according to the indictment.
Walton then provided cocaine and crack cocaine to Anthony, Lewis, Pearson, Harvey, Coburn, Pinkney, Martin, Archer, Crawford and others for distribution, according to the indictment.
Walton used stash houses and a storage locker to store drugs, drug proceeds and drug packaging materials, according to the indictment.
Prosecutors are seeking to forfeit several things used as part of or as a result of the criminal conspiracy, including three Canton homes, at 2914 Fairmount Blvd. NE (titled to Magueyal); 4707 Cleveland Ave. SW (titled to Cantwell) and 514 Webster Ave. NE (titled to Pinkney); four firearms, more than $85,000 in cash and four vehicles – a 1975 Oldsmobile Delta 88 Royale, a 2006 BMW 740i, a 2008 GMC Acadia and a 2007 Chevrolet Silverado Crew Cab LS, according to the indictment.
This indictment is the result of an investigation by the Stark County Safe Streets Task Force, which includes members of the Federal Bureau of Investigation, the Canton Police Department, the Jackson Township Police Department, the Alliance Police Department and the Ohio Adult Parole Authority, with assistance from the Ohio State Highway Patrol and the Stark County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Teresa Riley and Henry F. DeBaggis.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Trust Administrator Sentenced for Embezzling over $1 Million from Trusts of Elderly ClientsRead the Press Release
San Diego, CA - United States Attorney Laura E. Duffy announced that Brian Lee of San Diego County was sentenced today to 21 months in prison for embezzling over $1 million from trust accounts he had opened and managed on behalf of an elderly couple.
U.S. District Judge Barry Ted Moskowitz also ordered Lee to pay over $750,000 in remaining restitution, and commented Lee’s behavior was like “Dr. Jekyll and Mr. Hyde” as he was “little by little bleeding money away from persons who trusted him and were trying to do charitable things.”
Lee pleaded guilty to wire fraud on February 19, 2014. According to court documents and his admissions, an elderly San Diego couple hired Lee in approximately June 2004 to create trusts and corporations on their behalf in order to manage their assets. The couple also hired and paid Lee to maintain the bank accounts he opened for the couple’s entities.
Soon after opening these accounts, however, Lee began making unauthorized transfers of the couple’s funds and depositing the money into other bank accounts over which he had exclusive control. Lee continued to embezzle funds for almost a decade by systematically withdrawing funds from the couple’s accounts, including one account he opened as a trust account for the couple’s grandchildren. In total, Lee embezzled over $1 million from the couple, much of which he used to pay his own personal expenses.
United States Attorney Duffy said, “It is gratifying to achieve justice on behalf of these senior citizens, who unfortunately placed their trust in Mr. Lee. We hope that this case serves as a deterrent to other fiduciaries and trust administrators who might seek to take advantage of vulnerable victims.”
DEFENDANT Case Number: 14CR0385-BTM Brian P. Lee Age: 44 CHARGESTitle 18, United States Code, Section 1343 (Wire Fraud)
INVESTIGATING AGENCY
Maximum penalty: 20 years of custody; $250,000 FineFederal Bureau of Investigation
- Triple Bank Robber Ordered to Federal Prison
Tobacco Wholesaler Charged in Scheme to Defraud Two New England StatesRead the Press Release
BOSTON - A Middletown, Conn. man appeared today in federal court on charges related to a scheme to defraud the Commonwealth of Massachusetts and the State of Connecticut of millions of dollars in tobacco tax revenue.
Syed I. Bokhari, 50, was charged in a 32-count Indictment with conspiracy to commit wire fraud, wire fraud, trafficking in contraband smokeless tobacco, money laundering, and violation of the Prevent All Cigarette Trafficking (PACT) Act. Bokhari was the de facto owner of a warehouse in Springfield, Mass., that went by a variety of names, including A-Z Discount Merchandise and Discount Novelties and Merchandise, Inc. He was also the de facto owner of a warehouse in Danbury, Conn. which went by the name of Novelty and Merchandise, LLC.
It is alleged that Bokhari defrauded Massachusetts and Connecticut from at least 2008 through June 5, 2012 by failing to pay excise taxes on smokeless tobacco and cigars owed by businesses he owned and controlled. It is alleged that he furthered the scheme to defraud by transferring smokeless tobacco to those states without reporting such transfers to the appropriate state tax authorities, as required under the PACT Act. The Indictment also alleges that Bokhari accepted payments for tobacco products in cash amounts of more than $10,000, yet did not file the required federal financial reporting form in order to disguise the true volume of the tobacco products being sent to Massachusetts and Connecticut and the source of the cash payments. Bokhari also allegedly provided fake invoices and caused the filing of false excise tax returns to the Massachusetts and Connecticut tax authorities.
According to documents filed in connection with the charges, the government’s current estimate of the loss attributable to the defendant is $43 million.
U.S. Attorney Carmen M. Ortiz said, “This indictment exposes a form of tax evasion that deprives states like Massachusetts and Connecticut of badly needed revenue that pays for essential government services like education, public safety, and infrastructure. When tobacco tax laws are evaded, as the defendant is alleged to have done in this indictment, honest tobacco distributors suffer, as does the honest taxpayer.”
“This indictment should send a clear message that the illegal diversion of tobacco products will not be tolerated. We will continue to work with our federal and state partners to identify and arrest those involved in this type of criminal activity which in this case resulted in the loss of tens of millions of dollars in state tax revenue. Because in the end while the criminals profit, it is our citizens that bear the cost,” said Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division.
Department of Revenue Commissioner Amy Pitter, who served as Chair of the Massachusetts Illegal Tobacco Commission said, “Stopping the flow of illegal tobacco products is a priority for both our agency and the Commission and this indictment makes it clear that we are serious. Teaming up with federal, state and local law enforcement proved a successful model for combatting this criminal activity.”
“This indictment highlights the fact that tax evasion in any form is not a victimless crime, ” said SAC William P. Offord, IRS Criminal Investigation. “We will use all lawful means to identify and prosecute those who evade their taxes, whether it’s excise tax on tobacco products or income taxes.”
“Smuggling tobacco in order to evade state and local taxes is a multi-million dollar industry. It cheats the government as well by fueling an underground economy,” said Special Agent in Charge Bruce Foucart of HSI Boston. “Fortunately, Homeland Security Investigations’ unique customs law enforcement authorities were designed specifically to target and investigate these types of crimes. Our special agents will continue tracking down these criminals in conjunction with our federal, state, and local law enforcement partners.”
Bokhari faces a maximum sentence of 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for each of the 11 counts of conspiracy and wire fraud; a maximum sentence of five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss for each of the five counts of contraband smokeless tobacco trafficking; a maximum sentence of 20 years in prison, three years of supervised release and a fine of $500,000 or twice the value of the property involved in the transaction for each of the 11 counts of money laundering; a maximum sentence of three years in prison, one year of supervised release and a fine of $250,000 for each of the five counts of violation of the PACT Act; and forfeiture as alleged in the Indictment. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz, SAC Kumor, SAC Offord; Commissioner Pitter; SAC Foucart; and Commissioner Kevin B. Sullivan, of the Connecticut Department of Revenue Services made the announcement today. The case is being prosecuted by Alex J. Grant of Ortiz’s Springfield Office and Veronica M. Lei of Ortiz’s Asset Forfeiture Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Struthers Woman Indicted for Theft of Government FundsRead the Press Release
A federal Grand Jury returned a one-count indictment charging Beverly Boyd, 57, a resident of Struthers, Ohio, with theft of government funds, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment alleges that Boyd, the Rrpresentative payee for her father, stole government funds from the date of her father’s death on November 25, 2007, until August 2013. Boyd accomplished this scheme by concealing her father’s death and then converting her father’s Social Security benefits for her own use in violation of her responsibilities as a Representative Payee and federal law.
Assistant United States Attorney Matthew J. Cronin is prosecuting the case following an investigation by the SSA Office of Inspector General.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Spencerport Man Sentenced on Tax ChargeRead the Press Release
Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jay Chapman, 47, of Spencerport, N.Y., who was convicted of filing a false income tax return, was sentenced to five years probation and ordered to pay restitution totaling $111,078 by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Bradley E. Tyler, who handled the case, stated that in 2007, the defendant filed a personal income tax return but failed to report business income in the amount of $118,971.
The sentencing is the culmination of an investigation on the part the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.