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Friday 10 October 2014
Chiropractor Pleads Guilty to Bribing IRS AuditorRead the Press Release
BOSTON – A Lowell chiropractor pleaded guilty today for bribing an IRS auditor.
Steven Jacobs, 56, of Lowell, pleaded guilty to bribery of a public official. Jacobs paid an IRS auditor $5,000 in cash to favorably end an audit and ignore two deductions Jacobs improperly took on his 2011 and 2012 income tax returns. These deductions were in fact payments Jacobs made to two different women after they accused him of touching them inappropriately during medical treatments during 2011 and 2012. He was arrested on federal charges in February of this year.U.S. District Judge William G. Young scheduled sentencing for Jan. 13, 2014 at 2:00 pm.
United States Attorney Carmen M. Ortiz and Robert O’Malley, Special Agent in Charge of the Treasury Inspector General for Tax Administration, made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
Chicago Man Convicted of Conspiracy to Violate U.S. Sanctions by Providing Services to Zimbabwean President Mugabe and OthersRead the Press Release
CHICAGO — A Chicago man was convicted today by a federal jury of conspiracy to violate U.S. sanctions from late 2008 through early 2010 by agreeing to assist Zimbabwe President Robert Mugabe and others in an effort to lift economic sanctions against Zimbabwe. The defendant, C. GREGORY TURNER, met multiple times in the United States and in Africa with Zimbabwean government officials, including President Mugabe and Gideon Gono, governor of the Reserve Bank of Zimbabwe, who were individually subject to U.S. sanctions. A November 2008 “consulting agreement” provided for total payment of $3.4 million in fees for Turner and a co-defendant to engage in public relations, political consulting, and lobbying efforts to have sanctions removed by meeting with and attempting to persuade federal and state government officials, including Illinois members of Congress and state legislators, to oppose the sanctions.
Turner, 72, also known as “Greg Turner,” of Chicago and Israel, was found guilty of violating the International Emergency Economic Powers Act (IEEPA), following a trial that began Sept. 29 in U.S. District Court. The jury, which began deliberating on Wednesday, acquitted Turner of one count each of conspiracy and acting as an agent in the United States of a foreign government without providing prior notification to the Attorney General.
Turner remains free on bond while awaiting sentencing, which U.S. District Judge Elaine Bucklo, set for Jan. 9, 2015. He faces a maximum penalty of 20 years in prison and a $1 million fine. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Turner’s co-defendant, PRINCE ASIEL BEN ISRAEL, 73, of Chicago, was sentenced in August to seven months in prison after pleading guilty to violating the Foreign Agents Registration Act (FARA).
The sanctions against President Mugabe and other specially designated individuals in Zimbabwe ― for human rights abuses ― were initially imposed in 2003 by President George W. Bush, and have been continued annually by President Obama, starting in March 2009. President Mugabe and his ruling ZANU-PF party have governed Zimbabwe since its independence in 1980. The sanctions neither bar travel to Zimbabwe nor prohibit public officials from meeting with specially designated nationals to discuss removing the sanctions, but individuals may not provide services on behalf of or for the benefit of specially designated nationals.
According to the evidence at trial, in early November 2008, Turner and Ben Israel began having discussions with Mugabe, Gono, and other ZANU-PF leaders regarding the influence Turner and Ben Israel could wield to have the sanctions removed. The defendants discussed with Mugabe, Gono, and others their association with many public officials who purportedly had close connections with then President-Elect Obama. Turner violated IEEPA by conspiring to engage in public relations, political consulting, and lobbying efforts on behalf of President Mugabe and other Zimbabwe officials. In early December 2008, Ben Israel’s U.S. bank blocked a wire transfer of $89,970 into his account from a Zimbabwe official affiliated with ZANU-PF, and Ben Israel later traveled to Africa and personally withdrew $90,000 from the bank account of that same Zimbabwe official.
Turner and Ben Israel arranged for trips by federal and state government officials to meet with President Mugabe and other Zimbabwean officials, including in November and December 2008, and January and December 2009; attempted to have Gono and other Zimbabwean officials speak at an issues forum in Washington, D.C., sponsored by a then U.S. Representative from California, and to assist those officials in obtaining visas to travel to the U.S. to attend the event; arranged for President Mugabe to meet with federal and state government officials in New York; lobbied a caucus of state legislators on behalf of Zimbabwean officials; and failed to apply to the Treasury Department for a license to engage in transactions and services on behalf of specially designated nationals.
In early December 2008, Turner and Ben Israel arranged for a delegation to travel to Zimbabwe. After members of the delegation returned, President-Elect Obama’s transition team forwarded information about contact from a member of the delegation to the FBI based on its concerns that sanctions may have been violated sanctions by traveling to Zimbabwe, which was not itself prohibited.
Throughout 2009, Turner and Ben Israel continued to pass communications between Zimbabwean leaders and, purportedly, U.S. public officials while seeking payment for their services from Gono. Turner led an effort to have Gono speak at an issues forum hosted by a then U.S. Representative from California in September 2009. Turner attempted to assist Gono, as well as two other Zimbabwean officials, obtain visas to ensure that they could attend and participate in the forum.
The guilty verdict was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; John Carlin, Assistant Attorney General for the National Security Division; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago. The Justice Department’s Counterespionage Section assisted in the investigation.
The government is being represented by Assistant U.S. Attorneys Barry Jonas and Georgia Alexakis, and David Recker, a trial attorney with the Justice Department’s Counterespionage Section.
Charleston Restaurant Owners Sentenced to PrisonRead the Press Release
Contact Person: Dean Secor (843) 727-4381
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Dao Ping Lin (LIN), age 52, and Jin Xian Yang (YANG), age 52, both of Charleston, South Carolina were sentenced today in federal court in Charleston, South Carolina regarding the guilty pleas they entered on October 22, 2013. United States District Judge Richard M. Gergel of Charleston sentenced LIN to one (1) year and a day in prison and three (3) years of supervised release for Willful Failure to Truthfully Collect and Pay over Withholding Taxes, a violation of 26 U.S.C. § 7202, and six (6) months in prison for Pattern or Practice of Hiring Illegal Aliens, in violation of 8 U.S.C §§1324a(a)(1)(A) and 1324a(f)(1). LIN’s sentences are to run concurrently. Judge Gergel sentenced YANG to eighteen (18) months in prison and 3 years of supervised release for Structuring Bank Transactions of $10,000 or less, in violation of 31 U.S.C §§ 5324(a)(3) and 5324(d)(2).
Evidence presented at the change of plea hearing established that between February 2009 and March 2009, LIN and YANG, a married couple, purchased or caused to be purchased $85,885 of U.S. Postal Service money orders in increments totaling slightly less than the $3,000 reporting requirement for such instruments. The postal money order structuring activity led to a joint investigation by the Postal Inspection Service (USPIS) and the Internal Revenue Service-Criminal Investigation (IRS-CI). The U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) joined the investigation after receiving information from an anonymous source that LIN was employing illegal aliens and paying such workers under the table.
Income taxes and Federal Insurance Contributions Act (FICA) taxes collected from employees are collectively known as “trust fund taxes” and must be reported on quarterly Employment tax returns (Forms 941). Employers are also required to pay over a matching portion of FICA taxes and report that on the Forms 941 as well. The employer’s matching portion of FICA taxes is not a “trust fund tax.” It is a direct tax. 26 U.S.C. § 7202 only applies to “trust fund taxes,” but the tax loss due to failure to truthfully account for and pay over the employer’s matching portion of FICA taxes can be considered as relevant conduct for sentencing purposes.
The joint investigation revealed that LIN has owned and operated Healthy Inc., d/b/a Osaka Restaurant in Charleston since 2006. Most of LIN’s employees were illegal aliens. Osaka’s payroll returns reported the wages paid by check to LIN’s family and other legal workers. The illegal aliens’ wages, all paid in cash, were not included on Forms 941. The investigation further revealed that LIN was the responsible party for collecting, truthfully accounting for, and paying over “trust fund taxes” for Osaka Restaurant. For the 1st quarter 2007 through the 4th quarter 2010, LIN filed false Form 941s. The modus operandi was to only give the outside accountant payroll information related to the employees paid by check. The unremitted “trust fund taxes” totaled $228,912, and the unpaid employer taxes totaled $46,512. As for the guilty plea tax count (4th Quarter 2010), LIN underreported wages in the amount of $38,000, which resulted in unpaid “trust fund taxes” of $14,307.
The illegal aliens employed by Osaka Restaurant lived in a house that LIN owned. LIN and Osaka Restaurant owned passenger vans used to transport the illegal aliens to and from the employee house and the restaurant. After conducting surveillance and a traffic stop of an Osaka Restaurant van that contained illegal alien workers, search warrants were executed at LIN and YANG’s residence, the employee house, and Osaka Restaurant. Evidence seized during the searches included payroll sheets itemizing the amounts employees were paid by checks and the amounts employees were paid in cash. When agents searched the employee house they found two individuals on the premises. One individual had a pending asylum petition and the other individual was an illegal alien. Four additional illegal alien workers were found on the restaurant’s premises. ICE administratively arrested the five illegal aliens, who were later deported.
Agents also determined that YANG intentionally structured currency withdrawals in amounts of $10,000 or less (mostly in $9,800 increments) for the purpose of evading the filing of Currency Transaction Reports (CTRs). During the years 2007, 2008, and 2009, YANG conducted 102 structured cash withdrawal transactions totaling $999,600. She made the series of withdrawals from various branches of Bank of America, where the business bank account for LIN’s restaurant was maintained. YANG had signature authority of the account.
During the course of the joint investigation, agents seized $399,619 in currency from LIN and YANG as well as a 2008 Infinity automobile. LIN and JIN agreed to the forfeiture of those seized assets, and Judge Gergel entered an order of forfeiture for those assets at the sentencing hearing.
The case was investigated by agents of the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service (USPIS). Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.Cape Cod Brothers Convicted in Oxycodone Trafficking SchemeRead the Press Release
BOSTON – After a month-long federal trial, brothers Stanley D. Gonsalves and Joshua M. Gonsalves were convicted on multiple charges arising from a three-year conspiracy involving hundreds of thousands of 30-milligram oxycodone pills which were distributed on Cape Cod and generated over $5 million in proceeds.
Stanley Gonsalves, 36, of Sandwich, Mass., was convicted of an oxycodone trafficking conspiracy, a money laundering conspiracy, and 17 substantive money laundering charges. The money laundering charges relate to his purchase of two Mercedes vehicles and property located on Hoover Road in West Yarmouth. He was also convicted of possessing a firearm in furtherance of the oxycodone trafficking conspiracy.Joshua M. Gonsalves, 34, of Dennisport, Mass., was convicted of an oxycodone trafficking conspiracy, a money laundering conspiracy, and a substantive money laundering charge in connection with his purchase of a Cadillac.
The jury also required the forfeiture of the property in West Yarmouth and issued money judgments totaling $5,074,575.
During the trial, witnesses testified that the conspiracy’s couriers transported multi-thousand-pill loads of 30-milligram oxycodone pills from South Florida up to New England, first by plane and later by car. Once the pills were brought to numerous area hotels or conspirators’ homes and apartments in Dorchester, Quincy, and Onset, Mass., the conspirators would divide them into 100-pill packs and then take the pills to Cape Cod for sale to the dealer-level customers.
The primary object of the related money laundering conspiracy was to use the millions of dollars in drug proceeds to purchase fresh supplies of oxycodone pills and to pay the ongoing expenses of the oxycodone conspiracy. During the trial, witnesses testified about seizures from the Gonsalves Brothers’ co-conspirators of two attempted south-bound cash shipments totaling $140,000, and an attempted north-bound pill shipment of 5,700 pills. Other large pill seizures occurred in Fort Lauderdale (8,000 pills), in Volusia County, Fla. (900 pills), along Route 6 in Barnstable (280 pills), and along Route 3 Southbound in Kingston, Mass (4,000 pills). Other related cash seizures from co-conspirators totaled $167,000.The trial evidence also included extensive testimony about a car chase and rollover incident which occurred on Route 3 Northbound on May 13, 2011, in which the Gonsalves Brothers allegedly rammed their Mercedes SUV into a Volvo station wagon which they believed (incorrectly) contained the $225,000 in cash drug proceeds which had just been taken from them in a Bourne robbery. The men in the Volvo, who allegedly were only assisting the primary robbers (who were watching these events unfolding from a different car) managed to survive the rollover crash and then fled into the woods. In a recorded call a few days later, which was played at the trial, Stanley Gonsalves told a criminal associate about the robbery, boasting that the robbers “didn’t expect us to do what we did” in retaliation.
The four-year investigation that resulted in this case originated in Boston’s Chinatown, and initially focused on John (White Devil) Willis, a Cantonese-speaking Caucasian who is now serving a 20 year sentence, arising from his role as the Gonsalves Brothers’ primary oxycodone supplier between late 2009 and May 27, 2011.
The convicted charges carry statutory maximum sentences of 20 years for oxycodone trafficking conspiracy, money laundering conspiracy and concealment laundering charges, 10 years for unlawful monetary transaction laundering, and a mandatory consecutive sentence of five years on the firearm charge. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. District Chief Judge Patti B. Saris scheduled sentencing for Jan. 16, 2015.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. Significant assistance was also provided by the DEA Cape Cod Drug Task Force, the Barnstable, Boston, Quincy, Dennis, Plymouth, Sandwich, Yarmouth, Bourne, and Bristol County Police Departments, the Florence County (South Carolina) Sheriff’s Office, the Broward County (Florida) Sheriff’s Department, the Volusia County (Florida) Sheriff’s Office, and the Dillon and Ridgeland (South Carolina) Police Departments.
The case was prosecuted by Assistant U.S. Attorneys Richard L. Hoffman and Timothy E. Moran of Ortiz’s Organized Crime Strike Force Unit.
Canadian Man Found Guilty by a Federal Jury of Assault on a Federal OfficerRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal jury in Buffalo has convicted Jordan Hidalgo, 23, of Fort Erie, Canada, of assault on a federal officer with physical contact causing bodily injury. The defendant faces a maximum penalty of 20 years in prison, a fine of $250,000 or both when sentenced.
Assistant U.S. Attorneys Wei Xiang and George C. Burgasser, who handled the prosecution of the case, stated that the defendant was initially indicted in April 2011 along with five others and charged with violent crimes in aid of racketeering and other charges. This indictment centered upon the defendant’s activities on behalf of Cheko’s Crew/7th Street Gang, alleged to have operated on the West Side of Buffalo. Hidalgo was arrested in Canada in 2011 and extradited to the United States in August 2013.
On September 17, 2013, the defendant was being held at the Buffalo Federal Detention Facility in Batavia, NY. On that day, two deputy United States Marshals went to the facility to transfer Hidalgo to another facility. The defendant refused to leave his jail cell and began cursing and threatening the deputies. As the deputies went inside the jail cell to remove Hidalgo, the defendant punched one of the deputies multiple times in the head causing several cuts and a broken nose.
The verdict is the culmination of an investigation on the part of the U.S. Marshals Service, under the direction of Charles Salina, Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction Michael Phillips, Buffalo Field Office Director, and the Federal Bureau of Investigation. The Valley Metro-Barbosa Group also assisted in this case.
Sentencing is scheduled for January 26, 2015 at 12:30 p.m. in Buffalo before U.S. District Judge Richard J. Arcara who presided over the trial of the case.Boeing Pays $23 Million to Resolve False Claims Act AllegationsRead the Press Release
The Boeing Company paid $23 million to resolve allegations that it submitted false claims for labor charges on maintenance contracts with the U.S. Air Force for the C-17 Globemaster aircraft, the Justice Department announced today. Boeing, an aerospace and defense industry giant, is headquartered in Chicago.
“Today’s settlement demonstrates that the Justice Department vigilantly ensures that companies meet their contractual obligations and charge the government appropriately,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “Government contractors who seek illegal profit at the expense of taxpayers will face serious consequences.”
The government alleged that Boeing improperly charged labor costs under contracts with the Air Force for the maintenance and repair of C-17 Globemaster aircraft at Boeing’s Aerospace Support Center in San Antonio, Texas. The C-17 Globemaster aircraft, which is both manufactured and maintained by Boeing, is one of the military’s major systems for transporting troops and cargo throughout the world. The government alleged that the company knowingly and improperly billed a variety of labor costs in violation of applicable contract requirements, including for time its mechanics spent at meetings not directly related to the contracts.
“Defense contractors are required to obey strict accounting standards when submitting billing for work performed on government contracts,” said U.S. Attorney Robert Pitman for the Western District of Texas. “The pursuit and favorable settlement of this civil litigation was the result of effective teamwork between the Justice Department and the investigative agencies.”
The settlement resolves allegations originally brought in a lawsuit by present and former Boeing employees Clinton Craddock, Fred Van Shoubrouek, Anthony Rico and Fernando de la Garza in federal court in San Antonio under the False Claims Act. The act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The individuals who filed the suit will receive $3,910,000 as their share of the settlement.
The settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Western District of Texas, the Defense Criminal Investigative Service, the Air Force Office of Special Investigations, the Defense Contract Audit Agency and the Defense Contract Management Agency.
The case is United States ex rel. Craddock v. Boeing, Case No. SA-07-CA-0880FB (W.D. Tex.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Baltimore School Police Officer Sentenced to Two Years in Prison in Drug Trafficking ConspiracyRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Napoleon McLain, Jr., age 31, of Randallstown, Maryland today to two years in prison followed by three years of supervised release for conspiring to distribute and possess with intent to distribute cocaine base. McLain was an officer with the Baltimore City School Police Force (BCSPF). BCSPF officers are granted police privileges to carry firearms and conduct arrests within the City of Baltimore.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.“It is shocking when a police officer is caught selling illegal drugs,” said U.S. Attorney Rod J. Rosenstein. “Fortunately there is no evidence that the defendant distributed drugs to school students.”
According to his plea agreement, from no later than December 2012 to August 2013, while he was employed as a BCSPF officer, McLain was a member of a conspiracy to distribute cocaine base. McLain bought multiple ounces of cocaine base at a time from his suppliers, which he sold to others. On four occasions between December 2012 and August 2013, McLain sold a total of approximately 150 grams of cocaine base to a confidential source for $9,800.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant U.S. Attorney David I. Sharfstein, who prosecuted the case.
Thursday 9 October 2014
Year Old Hysham Meth Distributor Gets Five Years Without ParoleRead the Press Release
BILLINGS -- The United States Attorney's Office announced that Thomas Edward VanHaele, a 73 year-old resident of Hysham, Montana, was sentenced to 60 months in federal prison during a sentencing hearing in Billings, on October 9, 2014, before U.S. District Judge Susan P. Watters. VanHaele was also given five years of supervision once he is released from custody. VanHaele had earlier pleaded guilty to two counts of distributing methamphetamine.
The Drug Enforcement Administration (DEA) in Billings, Montana had been investigating Thomas Van Haele for the distribution of methamphetamine in the Billings area since May of 2012. On June 13, 2012, an undercover agent purchased methamphetamine from Van Haele in the Lee's Saloon parking lot in Billings. The methamphetamine was sent to the DEA Laboratory for testing, and the results indicate that the amount was 9.5 grams of pure methamphetamine. On June 15, 2012, a second undercover purchase was made from VanHaele at the same location. This methamphetamine was sent to the DEA Laboratory for testing, and the results indicate that the amount was 11.3 grams of pure methamphetamine.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Parole has been abolished in the federal system so VanHaele will be required to serve the entire sentence although federal prisoners are given some days off their sentence for complying with prison rules and not committing any infractions or causing disruption inside the prison.
Wilkes-Barre Man Pleads Guilty to Possessing Firearm in Connection with Drug TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 31-year-old Wilkes-Barre man pleaded guilty today before Senior U.S. District Court Judge Edwin M. Kosik to carrying and possessing a firearm in furtherance of a drug trafficking felony.
According to United States Attorney Peter Smith, the defendant, Tristan Somers, admitted to committing the crime in Wilkes-Barre on May 28, 2014.
Somers was indicted by a federal grand jury on June 3, 2014, following an investigation by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Wilkes-Barre Police, and Kingston Police.
Somers faces a mandatory minimum five-year prison sentence and a potential maximum sentence of life in prison. Judge Kosik ordered a pre-sentence investigation. Sentencing will be scheduled after the completion of the pre-sentence report.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Wichita Woman Pleads Guilty to Operating A Prostitution BusinessRead the Press Release
WICHITA, KAN. – A Wichita woman pleaded guilty Wednesday to operating a prostitution business, U.S. Attorney Barry Grissom said.
Saundra J. Lacy, 60, Wichita, Kan., pleaded guilty to one count of engaging in interstate commerce in furtherance of prostitution. In her plea, she admitted Jessie’s Primetime Entertainment was a prostitution business that employed at least 20 women escorts. Customers would pay $160 for a half-hour date or $185 for an hour date with an escort. During dates, escorts engaged in sexual contact customers.
Lacy accepted cash, credit card and checks for escort services. The credit card transactions were processed by Merrick Bank in Utah. Payment was deposited into her account at Bank of America in Wichita.
Sentencing is set for Dec. 29. Both parties have agreed to recommend 24 months on federal probation. Grissom commended the FBI, the Wichita Police Department and Assistant U.S. Attorney Matt Treaster for their work on the case.
Westminster Man Arrested for Orchestrating A Scheme to Defraud ClientsRead the Press Release
DENVER – Timothy J. Tucker, age 51, of Westminster, Colorado, was arrested today without incident for wire fraud and money laundering, United States Attorney John Walsh, Federal Bureau of Investigation Special Agent in Charge Thomas Ravenelle, and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Tucker appeared in court for his initial appearance this afternoon before U.S. Magistrate Judge Craig B. Shaffer, where he was advised of his rights and the charges pending against him. Tucker was indicted by a federal grand jury in Denver on October 7, 2014. The indictment remained sealed pending his arrest.
According to the facts contained in the Indictment, beginning in February 2010 and continuing until late 2013, Tucker devised a scheme to defraud by obtaining advanced fees from individuals and entities who were seeking multimillion-dollar loans. During the course of the scheme, Tucker operated Assured Venture Group (“AVG”) and The Financial Group, LLC, (“TFG”), which purported to be in the business of finding funding for multimillion-dollar loans for investment projects through the issuance of corporate bonds.Tucker told people and entities seeking multimillion-dollar loans that they were required to pay AVG/TFG fees in advance of AVG/TFG performing work to find funding for the requested loans and that the fees would be spent only on underwriting, due diligence, and closing costs related to the requested loans. For some of these loans, Tucker promised that the advanced fees would be placed in an escrow account to falsely reassure the people and entities seeking the multi-million dollar loans that the advanced fees would be spent only on underwriting, due diligence, and closing costs related to the requested loan, as promised.
Between February 2010 and March 2013, AVG/TFG was paid over $1.8 million in fees on twenty-one different projects, both by individuals and entities. Tucker did not secure funding for any of those twenty-one projects and didn’t return any fees on nineteen of the twenty-one projects. The majority of the fees received by AVG/TFG were used on things unrelated to the requested loans, including Tucker’s other businesses.
Tucker was charged with ten counts of wire fraud, which carries a penalty of not more than 20 years in federal prison and a fine of up to $250,000 per count, and six counts of money laundering, which carries a penalty of not more than 10 years in federal prison and a fine of up to $250,000 per count.
This case was investigated by the Federal Bureau of Investigation (FBI) and IRS Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne.The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.
U.S. Labor Department Settles Unfair Labor Practices Lawsuit Against St. James TearoomRead the Press Release
ALBUQUERQUE – The U.S. Department of Labor has entered into a settlement agreement with the St. James Tearoom, Inc. and its owners, Mary Alice and Daniel Higbie, which resolves an unfair labor practices lawsuit filed in Dec. 2014. The lawsuit alleged that St. James Tearoom and its owners violated the Fair Labor Standards Act (FLSA) by failing to pay required minimum and overtime wages to its employees.
Under the terms of the settlement agreement, which was filed as a court order today in the U.S. District Court for the District of New Mexico, the St. James Tearoom agrees to comply with the FLSA by paying its employees the required minimum hourly rate for workweeks of 40 hours or less, and by paying its employees at a rate not less than one and one-half times the regularly rate for work in excess of 40 hours per week. The agreement also requires that the St. James Tearoom keep accurate records of its employees, hours worked, wages paid, and other employment conditions and practices. The St. James Tearoom also will pay $25,286.
70 in backwages for the period of Dec. 2011 through Feb. 2013, plus an additional $25,286.70 in liquidated damages for a total amount of $50,573.40, to 42 employees.The Labor Department’s lawsuit was filed after investigators from the Wage and Hour Division’s Albuquerque District Office found that St. James Tearoom required that its dishwashers and serving staff join a tip pool, resulting in minimum wage violations. The mandatory tip pool included salaried managers, shift leaders, dishwashers, and other employees who are not eligible for tip pools, making the St. James Tearoom’s entire tip pool arrangement invalid. The St. James Tearoom also failed to keep accurate records of hours worked by employees, resulting in record-keeping violations.
Under the FLSA, the employer may consider tips as part of wages, but the employer must pay at least $2.13 per hour in direct wages. The employer who elects to use the tip credit provision must inform the employee in advance and must show that the employee receives at least the applicable minimum wage of $7.25 when direct wages and tip credit are combined. If an employee’s tips, combined with the employer’s direct wages of at least $2.13 an hour do not equal the minimum hourly wage, the employer must make up the difference. Employees must retain all their tips, except to the extent that they participate in a valid tip pool of sharing arrangement.
“When employers fail to pay the required minimum and overtime wages, it negatively impacts not just the workers and their families, but also other businesses and the community. Underpaying workers gives this business an unfair competitive edge against employers who abide by the law,” said Cynthia Watson, regional administrator for the Labor Department’s Wage and Hour Division in the Southwest. “This settlement agreement ensures that the employees of the St. James Tearoom will receive the backwages they are due and that they will continue to be properly compensated for their work.”
Colleen B. Nabhan of the Office of the Solicitor, U.S. Department of Labor, and Assistant U.S. Attorney Michael H. Hoses of the District of New Mexico litigated the case on behalf of the U.S. Labor Department.
U.S. Attorney, Shreveport Mayor and Police Chief Attend Shreveport/Bossier Night OutRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley, and members of her office, Mike Campbell, Law Enforcement Community Coordinator (LECC), and Robert Gillespie, Jr., an Assistant U.S. Attorney/Project Safe Neighborhoods Coordinator, joined Shreveport Mayor Cedric Glover, Shreveport Police Chief Willie Shaw, Caddo Parish Sheriff Steve Prator’s Office, Bossier Parish Julian Whittington’s Office, Bossier City Police Chief Shane McWilliams’ Office and other local law enforcement and community leaders in neighborhoods throughout Caddo and Bossier parishes Tuesday as part of their annual National Night Out crime and drug prevention event.
Residents unlocked their doors, turned on porch lights and spent the evening outside with family, friends, neighbors, emergency response personnel and city officials. Many neighborhoods throughout Caddo and Bossier parishes hosted a variety of special events such as block parties, cookouts, parades, flashlight walks, contests, youth activities and anti-crime rallies. The Shreveport/Bossier Night Out is designed to heighten crime and drug prevention awareness, generate support for local anti-crime efforts, strengthen neighborhood spirit and police community partnerships, and send a clear message that neighbors are organized and fighting back.
“The Shreveport/Bossier Night Out is a way for neighbors to join with their law enforcement and community partners to demonstrate that crime does not rule the night and that criminals have no safe haven when the sun goes down,” Finley stated. “The ‘Night Out’ is also a great way to acknowledge the accomplishments of neighborhood organizations that keep communities safe. We are all in this effort together. I really enjoyed having the opportunity to visit with residents of the Shreveport/Bossier City area to discuss concerns and ways to improve law enforcement within our communities.”
“This is a very important event because it reaffirms our commitment to the community,” Shaw stated. “This is a new day to bond with the public. We want the people to know that law enforcement will work together as a team to solve crimes in our region.”
As the District’s Law Enforcement Community Coordinator, Mike Campbell acts as a liaison between the U.S. Attorney's Office and local, state, and federal law enforcement. He assists with grants, coordinates and provides law enforcement training, and assists law enforcement agencies with special and community needs. The mission of the Law Enforcement Coordinating Committee is to develop coordination, communication, and cooperation between local, state, and federal law enforcement agencies throughout the Western District of Louisiana by providing education, training, and technical assistance to all federal, state, and local law enforcement agencies in the district.
Assistant U.S. Attorney Robert W. Gillespie, Jr. is the District’s Coordinator for the Project Safe Neighborhoods Program. Project Safe Neighborhoods (“PSN”), is the anti-gang, anti-gun violence initiative of the United States Department of Justice. It is a comprehensive, strategic approach to reducing gun violence and promoting safe communities around the country. PSN combats gun violence by bringing together local, state, and federal law enforcement officials, prosecutors, and community leaders to implement a multi-faceted strategy to deter and punish gun violence.
Thousands of communities across the United States took part in the 31st Annual National Night Out starting in August. To find out more about National Night Out visit the National Association for Town Watch at http://www.natw.org.
U.S. Attorney, Law Enforcement, Community Groups to Convene Forum Seeking Public's Help Against East Side CrimeRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today the convening of a public forum to address violent crime on the East Side of Buffalo. The forum – dubbed “Take Back our Streets” – will share information about crime in East Side neighborhoods and seek information about who is committing it.
“Because of the partnership among all levels of law enforcement, residents have seen many successes in fighting crime across the region,” said U.S. Attorney Hochul. “But as long as even one person lives in fear of property or personal harm, law enforcement will not rest. From experience, the best way to remove those who would hurt others is for residents to speak out. This forum will be an opportunity for those on the East Side of Buffalo who have seen something to say something.”
One of the recent successes of law enforcement was the successful prosecution of 44 members of the 10th Street Gang. Assisted by community participation, this prosecution contributed to the revival of the West Side of Buffalo.
The Take Back our Streets - East Side Community Forum will be held on Tuesday, October 14, 2014 at 6:00 p.m. at the Frederick Law Olmsted School at 319 Suffolk St. in Buffalo. Residents will be able to share their specific concerns about crime on their streets and information in a safe and anonymous setting. ALL information will remain strictly confidential.
In addition to meeting with U.S. Attorney Hochul, residents will meet the leaders of other federal agencies including the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service. Representatives of the Buffalo Police Department, New York State Police and Erie County Sheriff’s Department will also be in attendance. Members of the Buffalo Peacemakers Organization, area clergy, elected officials, and the Buffalo Municipal Housing Authority will also be present.
U.S. Attorney Hochul is asking for the media’s assistance in helping to spread the word about this important forum. He is available for interviews today regarding these efforts. For more information, please contact Barbara Burns at 716-843-5817.U.S. Attorney Announces more than $161,000 in Grants Awarded to Shreveport, Bossier City Police DepartmentsRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley and the Project Safe Neighborhoods Task Force announced today that the Shreveport and Bossier City police departments have been awarded more than $161,000 in grants through a Department of Justice (DOJ), the Office of Justice Programs (OJP), and the Bureau of Justice Assistance (BJA), under the Violent Gang and Gun Crime Reduction Program, also known as Project Safe Neighborhoods (PSN).
The Shreveport Police Department will receive $132,984. The police department and the Caddo Parish Sheriff’s Office will use the funds to purchase law enforcement equipment and supplies. The Shreveport Police Department will act as fiscal agent. The goals are to improve criminal justice services and enhance police officer safety.
The Bossier City Police Department will receive $28,856. The police department and the Bossier Parish Sheriff’s Office will use the funds to purchase law enforcement equipment and supplies. The Bossier City Police Department will act as fiscal agent. The goal is to improve criminal justice initiatives.
The funds were made available through the Edward Byrne Memorial Justice Assistance Grant (JAG) program, which is a BJA grant program under DOJ that allows states and units of local government to support a broad range of activities to prevent and control crime based on their own state and local needs and conditions. This program furthers DOJ's mission and violent crime reduction strategy by providing support to state, local and tribal efforts to reduce gun and gang-related violent crime.
Various types of single or multi-grantee grant applications are allowed under the grant program that addresses the following:
- Gang violence and gun violence reduction, deterrence, prevention, community outreach and education;
- Enforcement, adjudication, and supervision programs;
- Prisoner reentry programs; or
- Other innovative related projects.
“These grants mean that law enforcement in our community will be better equipped to protect and serve,” Finley stated. “I want to congratulate the police departments for being awarded these funds. It is through partnerships and grants like these that the mission of law enforcement agencies can be enhanced.”
“The working relationships we have forged with our law enforcement partners are one of the cornerstones of our crime reduction strategies and they have paid tremendous dividends for the citizens of Shreveport,” said Shreveport Police Chief Willie Shaw. “Working together we can accomplish anything and the dramatic decreases in crime across the board in our city are a testament to the importance of those collaborative partnerships.”
“We appreciate the assistance of the U.S. Department of Justice in securing these funds to help keep our city safe,” said Bossier City Police Chief Shane McWilliams. “These monies will enable our officers to increase enforcement in a number of areas including DWI saturation patrols and community policing initiatives including monitoring operations of registered sex offenders in our city.”
Information about the FY2014 PSN Competitive Grant and links to other grants available, and information on the PSN Program can be found at the U.S. Attorney’s web site www.justice.gov/usao/law/ as well as www.justice.gov/usao/law/psn.html or at www.psn.gov and www.bja.gov/Funding/14PSNsol.pdf.
For more information, contact Western District of Louisiana Assistant U.S. Attorney and PSN and Anti-Gang Coordinator Robert W. Gillespie Jr. at (318) 676-3600.
Two Perry County Residents Charged with Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsTwo Perry County residents were indicted on October 7, 2014, in an indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Brant A. Sizemore, 38, and Stephanie A. Ellis, 36, both of DuQuoin, are charged in a one-count indictment charging conspiracy to manufacture methamphetamine. The indictment alleges that the offense occurred between 2012 and September 2014, in Perry, Jackson, Randolph, Williamson, and Franklin Counties. Sizemore and Ellis made their initial appearances in federal court in Benton on October 9, 2014. They are both currently being held without bond pending an October 14, 2014, detention hearing.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted, Sizemore and Ellis face a term of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Murphysboro Police Department, and DuQuoin Police Department. The Pinckneyville Police Department and Illinois State Police Methamphetamine Response Team assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Torreon Man Pleads Guilty to Federal Involuntary Manslaughter ChargeRead the Press Release
ALBUQUERQUE – Isaac Gordo, 30, an enrolled member of the Navajo Nation who resides in Torreon, N.M., entered a guilty plea this morning to an involuntary manslaughter charge. Under the terms of his plea agreement, Gordo will be sentenced to 37 months if federal prison followed by a term of supervised release to be determined by the court.
During today’s proceedings, Gordo pled guilty to a felony information charging him with killing another man on July 17, 2013, while operating a vehicle under the influence of alcohol and driving recklessly. According to the information, the offense occurred on the Navajo Indian Reservation in Sandoval County, N.M.,
In his plea agreement, Gordo admitted killing the victim while driving under the influence of liquor. Gordo acknowledged that he had been drinking alcohol before he driving his vehicle off the roadway, over correcting and flipping the vehicle so that it came to rest on its roof.
Gordo is in federal custody and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI, the Navajo Nation Division of Public Safety and the New Mexico State Police, and is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard.
- Three Ft. Hood Soldiers and Another Charged in Alien Transporting Conspiracy
Three Eagle Butte Men Charged with Assault and Aiding and AbettingRead the Press Release
United States Attorney Brendan V. Johnson announced that three Eagle Butte, South Dakota, men have been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Aiding and Abetting the two assaults.
Lawrence Mexican, age 23, Todd Johns, age 26, and Joshua Heiedeman, age 21, were indicted on September 16, 2014. They have all appeared before U.S. Magistrate Judge Mark A. Moreno and each pled not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Restitution may also be ordered.
The Indictment charges that on July 19, 2014, in Eagle Butte, Mexican, Johns and Heideman unlawfully assaulted the victim with shod feet, metal crutches, and wooden clubs. The assault is alleged to have caused serious bodily injury to the victim.
The charges are merely accusations and Mexican, Johns and Heideman are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
All three defendants were remanded to the custody of the U.S. Marshals Service pending trial. Trial has been set for November 18, 2014.
Tax Preparer Guilty of Defrauding the Irs to Obtain Several Thousand Dollars of Tax RefundsRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of TYMONIA SHAFAY WILLIAMS, 33, to one count of filing False, Fictitious and Fraudulent Claims. WILLIAMS was indicted on August 11, 2014 for filing False, Fictitious and Fraudulent Claims against the government, and pleaded guilty on October 6, 2014 before United States District Court Judge Richard H. Kyle.
According to the defendant’s guilty plea and documents filed in court, in February 2010, WILLIAMS devised a scheme in which she prepared and electronically filed false tax returns on behalf of her friends, family and acquaintances. As part of the scheme, WILLIAMS collected personal information from the individuals for whom she was preparing tax returns, including addresses, social security numbers and Form W-2 or 1099s.
Additionally, for each false return, WILLIAMS completed a Schedule C claiming that the individuals earned self-employment income from various jobs such as “hairdresser,” “dancer,” or “entertainer.” By including false amounts of self-employment income on the tax returns, WILLIAMS was able to apply certain credits to fraudulently generate large tax refunds. The total amount of the tax loss for all returns is at least $100,000.
“Investigating refund fraud is a top priority for IRS Criminal Investigation,” said IRS Criminal Investigation Acting Special Agent in Charge Karl Stiften. “Filing false tax returns is a serious crime that hurts innocent taxpayers. Law enforcement and the United States Attorney’s Office are serious about investigating these crimes and holding accountable those who defraud the government and taxpayers.”
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division.
Assistant United States Attorney John E. Kokkinen prosecuted the case.
Defendant Information:
TYMONIA SHAFAY WILLIAMS, 33
West St. Paul, Minn.
Charges:
• False, Fictitious and Fraudulent Claims, 1 count###
St. Thomas Man Arraigned on Charges of Possession of Firearm with Obliterated Serial NumberRead the Press Release
St. Thomas, USVI- Carlos Norman, 22, appeared today in District Court on St. Thomas for arraignment after his arrest for possession of a firearm with an obliterated serial number, announced United States Attorney Ronald W. Sharpe. Norman was released on an unsecured $20,000 bond.
Norman was arrested Friday pursuant to a warrant issued after he was indicted by a federal grand jury on August 7, 2014 in a one-count indictment charging him with possession of an obliterated firearm on April 28, 2014.
Under federal law, a person convicted of possession of a firearm with the manufacturer’s serial number removed faces a sentence of not more than 10 years in prison and a $250,000 fine.
The public is reminded that an indictment is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
This case is being investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Virgin Islands Police Department. It is being prosecuted by Assistant U.S. Attorney Ishmael Meyers, Jr.
St. Tammany Man, Darrell Morris, Pleads Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DARRELL MORRIS, age 55, a resident of Slidell, Louisiana, pled guilty today to one count of conspiracy to commit wire fraud relating to a fraudulent application he made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. On or about October 1, 2010, MORRIS applied for disaster assistance funds, representing that he was employed in a commercial fishing business before the oil spill. However, MORRIS had never worked in the commercial fishing business, and he submitted or caused to be submitted false documentation to establish his false earnings. Based on his fraudulent application, MORRIS received approximately $75,000 to which he was not entitled.
MORRIS faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Nannette Jolivette Brown set sentencing for February 12, 2015.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant U. S. Attorney Julia K. Evans is in charge of the prosecution.
(Download Factual Basis )
St. Clair County Woman Sentenced for Theft of Government Social Security BenefitsRead the Press Release
Follow @SDILNewsStephen R, Wigginton, United States Attorney for the Southern District of Illinois, announced today that Tara Star Johndrow, 30, of Belleville, Illinois, was sentenced on one count of Theft of Government Funds in the United States District Court in East St. Louis, Illinois. The district court sentenced Johndrow to five years’ probation with the first six months in home detention. The court also ordered her to pay restitution to the Social Security Administration in the amount of $14,560.48 and pay a special assessment of $100.
On June 16, 2014, Johndrow pled guilty to the charge. During the plea, Johndrow admitted that between August of 2010 and August of 2012, she received approximately $14,500 in Supplemental Social Security Payments from the Social Security Administration, when she falsely claimed to the government agency that she did not work, when she, in fact, was working.
The investigation was conducted by the Social Security Administration, Office of the Inspector General, and is being prosecuted by Assistant United States Attorney Ranley R. Killian.
Spokane, Washington Man Sentenced to Five Years in Federal Prison for Distribution of Child Pornography ImagesRead the Press Release
SPOKANE, Wash. – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Brian Frank Richardson, age 23, of Spokane, Washington, was sentenced, after having previously pleaded guilty on July 14, 2014, to Distribution of Child Pornography. Senior United States District Court Judge Justin L. Quackenbush sentenced Richardson to a five year term of imprisonment, to be followed by a life term of court supervision after he is released from Federal prison. In addition, Richardson will be required to register as a sex offender.
According to court records, in February through September of 2013, Richardson used a peer to peer file sharing network on the Internet to distribute child pornography images. Some of the individuals Richardson distributed to were law enforcement officers, working online in an undercover capacity. As a result of Richardson’s distribution of child pornography images, investigation was conducted by the Spokane County Sheriff’s Office and the United States Secret Service. In October of 2013, a federal search warrant was executed at Richardson’s residence in Spokane, Washington and Richardson’s laptop computer was seized. A forensic examination of the laptop revealed that Richardson was in possession of approximately 6,751 child pornography images.
Michael C. Ormsby said, “Safety of our children is paramount to safe communities. Therefore, prosecuting offenders who are distributing child pornography is a big priority of the United States Attorney’s Office in the Eastern District of Washington. This Office, together with its Federal and state law enforcement partners, is and will continue to be committed to investigating, prosecuting, and seeking appropriate punishment for child pornography crimes.”
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
- Integrated federal, state, and local efforts to investigate and prosecute child
exploitation cases, and to identify and rescue children; - Participation of PSC partners in coordinated national initiatives;
- Increased federal enforcement in child pornography and enticement cases;
- Training of federal, state, and local law enforcement agents; and
- Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This investigation was conducted by the Spokane County Sherriff’s Office and United States Secret Service. The case was prosecuted by Stephanie J. Lister, an Assistant United States Attorney and PSC Coordinator for the Eastern District of Washington.CR-14-00040-JLQ
- Integrated federal, state, and local efforts to investigate and prosecute child
Sentencings for October 2 - October 8, 2014Read the Press Release
Juan Roberto Andrade-Andrade, 40, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on October 8, 2014, for illegal re-entry of a previously deported alien into the United States. Andrade-Andrade was arrested in Jackson, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Santiago Piucana-Mendez, 38, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 8, 2014, for illegal re-entry of a previously deported alien into the United States. Piucana-Mendez was arrested in Laramie, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Jamie Sanchez-Garcia, 31, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on October 8, 2014, for illegal re-entry of a previously deported alien into the United States. Sanchez-Garcia was arrested in Laramie, Wyoming. He received six months imprisonment, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Marvin Iverson, 66, of Burlington, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 8, 2014, for bank fraud. Iverson was arrested in Burlington, Wyoming. He received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $29,358.29. This case was investigated by the Big Horn County Sheriff’s Office, the Cody Police Department and the Federal Bureau of Investigation.
Senacia Jamie Mert, 23, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 3, 2014, for conspiracy to possess with intent to distribute, and to distribute 608 grams of methamphetamine. Mert was arrested in Cheyenne, Wyoming. She received 92 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment and a $200.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Magen Nichole Stuart, 26, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 3, 2014, for conspiracy to possess with intent to distribute, and to distribute 718 grams of methamphetamine. Stuart was arrested in Cheyenne, Wyoming. She received 84 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and a $500.00 fine. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Steven Paul Burns, 26, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on October 2, 2014, for possession of stolen mail. Burns appeared pursuant to a summons. He received one year of supervised probation and was ordered to pay restitution in the amount of $3,098.58. This case was investigated by the U.S. Postal Service Office of Inspector General.
Sentencing Complete for Leaders of Interstate Contraband Cigarette Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Wissam Khalil, 41, of Central Falls, R.I., and his brother, Bassam Nazir Khalil 49, of Pawtucket, R.I., were sentenced in U.S. District Court in Providence today for their roles as leaders of a complex interstate conspiracy that transported more than 6 million contraband cigarettes from Virginia to Rhode Island. The sale of the contraband cigarettes in Rhode Island resulted in the loss to the State of nearly $1.1 million dollars in tax stamp revenue.
U.S. District Court Chief Judge William E. Smith sentenced Wissam Khalil to 42 months in federal prison to be followed by 3 years supervised release; Bassam Nazir was sentenced to 33 months in federal prison to be followed by 3 years supervised release.
The sentences are announced by Peter F. Neronha, United States Attorney for the District of Rhode Island; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; William P. Offord, Special Agent in Charge of the Boston field office of IRS Criminal Investigation; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations for New England; Scott E. Antolik, Special Agent in Charge of the Boston field office of the Social Security Administration, Office of the Inspector General/Office of Investigations; and William G. Squires, Special Agent in Charge of the northeast region of the U.S. Department of Agriculture Office of Inspector General.
A federal court jury trial in July 2014 was halted when Wissam Khalil pleaded guilty to one count each of transporting, possessing or selling in excess of 10,000 contraband cigarettes; structuring; and conspiracy to defraud the Supplemental Nutrition Assistance Program. Bassam Khalil pleaded guilty to one count of transporting, possessing or selling in excess of 10,000 contraband cigarettes and one count of conspiracy to commit social security fraud.
A third brother, Najd C. Khalil, 26, of Pawtucket, surrendered to the court on Monday, having been removed from an outbound Boston flight to Paris Saturday night and detained during an alleged attempt to flee the country prior to self-surrendering to begin serving a 24 month federal prison sentence imposed for his role in the conspiracy. Najd Khalil pleaded guilty in September 2014 to one count each of conspiracy to traffic contraband cigarettes, structuring and food stamp fraud.
According to information presented to the court, between July 2011 and May 2013, more than 30-thousand cartons (6 million) of cigarettes valued at more than $1.2 million dollars were purchased in Virginia and shipped to Rhode Island via truck. The cigarettes were distributed and sold at various locations in Rhode Island at or near full-retail price. No state tax stamp was affixed to the packages of cigarettes and no tax payments were made to the State of Rhode Island, resulting in a loss of nearly $1.1 million dollars of tax revenue.
Four other individuals charged as a result of this investigation pleaded guilty and were sentenced previously to various terms of probation.
A federal arrest warrant has been issued for an eighth defendant, Nazir Khalil, 76, of Central Falls, R.I., father of Wissam, Bassam and Najd Khalil. It is believed that Nazir Khalil has remained outside of the United States since the arrest warrant was issued in September 2013.
Additionally, the government has moved to forfeit items seized from the defendants as a result of the investigation, including a Mercedes Benz SUV, Sierra pick-up truck, Chevrolet Tahoe, Toyota Camry and $121,956.08 in cash.
The case was prosecuted by Assistant U.S. Attorneys William F. Ferland and Ly T. Chin.
The matter was investigated by the Rhode Island State Police, Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, United States Social Security Administration Office of Inspector General – Office of Investigations, Homeland Security Investigations and the U. S. Department of Agriculture Office of Inspector General.
United States Attorney Peter F. Neronha also acknowledges and thanks the Virginia State Police, the Virginia Department of Attorney General, the Virginia Division of Taxation, the Northern Virginia Cigarette Tax Board, the Rhode Island Division of Taxation – Excise Tax Compliance Unit, the Rhode Island Department of Attorney General, and the Cranston and Providence Police Departments for their assistance in this investigation.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Sand Springs Man Sentenced for Fraudulently Receiving over $16,000 in Unemployment Benefits While EmployedRead the Press Release
TULSA, Okla. — A Sand Springs man was sentenced in Federal court today for providing false information to the Oklahoma Employment Security Commission resulting in the receipt of over $16,000 in unemployment insurance benefits, announced United States Attorney Danny C. Williams Sr., for the Northern District of Oklahoma. A Federal grand jury charged Hansen by indictment on June 5, 2014.
United States District Chief Judge Gregory K. Frizzell sentenced Laverne Robert Hansen, 50, of Sand Springs, to serve five years of Probation and ordered him to pay $16,051.70 in restitution. Previously, Hansen received unemployment insurance benefits while falsely claiming he was unemployed. In fact, he was working and earning money.
The case was investigated by the Department of Labor’s Office of the Inspector General and prosecuted by Assistant U.S. Attorney Jeffrey A. Gallant on behalf of the United States.
San Antonio Businessman Pleads Guilty in Maverick County Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
In Del Rio, 54-year-old German Garcia Cano faces up to ten years in federal prison after pleading guilty this afternoon to a bribery charge in connection with a bribery, kickback and bid-rigging scheme in Maverick County announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher Combs.
Appearing before United States Magistrate Judge Collis White this afternoon, the owner of GGC Enterprises, Inc., pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. According to the court records, Maverick County paid GGC hundreds of thousands of dollars between 2009 and 2012 for leasing heavy equipment used in construction projects in Maverick County. By pleading guilty, Cano admittedly paid bribes to two Maverick County employees to insure that GGC secured those leasing contracts with Maverick County and to receive his checks from the county.
Cano, who is the 16th defendant convicted in connection with this Maverick County corruption investigation, remains on bond pending sentencing. Eagle Pass businessman Hipolito Amaya is the only defendant who has been sentenced. In March 2014, Amaya was sentenced to 41 months in federal prison followed by three years of supervised release and ordered to pay approximately $35,000 restitution for paying a bribe. The remaining defendants are scheduled for sentencing in February 2015.
This investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorney Bryan Reeves, Katherine Griffin and Michael Galdo are prosecuting this case on behalf of the Government.
Russian National Receives 18 Month Prison Sentence for Smuggling High-Tech Night Vision Technology to RussiaRead the Press Release
WILMINGTON, Del. - Dmitry Ustinov, of Moscow, Russia, 53, was sentenced in U.S. District Court to 18 months in prison and 3 years supervised release, for conspiracy to export high-tech military technology, in violation of federal law, including the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR), announced Charles M. Oberly, III, U.S. Attorney for the District of Delaware yesterday afternoon. Ustinov will be deported from the United States upon his release from federal prison.
Ustinov has been incarcerated since April 15, 2013, when he was arrested at the request of the U.S. Government in Vilnius, Lithuania after entering the country from Russia. On August 23, 2013, Lithuania extradited Ustinov to the United States. On July 10, 2013, Ustinov pled guilty to the conspiracy offense listed above.
According to court documents, between July 2010 and April 2013, Ustinov caused or attempted to cause the export of approximately seventeen different night vision devices and thermal imaging scopes, which are designated on the United States Munition List (USML) as defense articles, and are prohibited from export outside the United States. The defense articles at issue, including Insight Mini Thermal Monoculars, D-740 night vision scopes, and Flir Tau 640 thermal imaging cameras, are primarily used as weapons’ mounted or helmet mounted night vision devices, and in the case of the Flir Tau 640s, can even be mounted to fast moving vehicles or aircrafts, such as unmanned aerial vehicles.
Given the sensitive nature of the defense articles at issue, Ustinov’s scheme was designed to avoid detection by law enforcement at each step in the process. First, Ustinov worked closely with a United States-based straw purchaser to conceal his involvement at the point of sale. Second, once a specific defense article was identified for purchase, Ustinov wired money to the straw purchaser to buy the defense article from front companies located in off-shore accounts in Cyprus. Finally, Ustinov also caused the packages containing USML defense articles to be falsely labeled so that customs officials from the United States and other countries would be less likely to search the package. Moreover, Ustinov also discussed using less traditional methods to obtain and export these night vision devices outside the United States, such as establishing a phony front company in the United States, and placing these high-tech devices inside chopped up car parts to conceal them from customs officials. At no time, however, did Ustinov ever apply for or receive a license to export these devices from the U.S. Department of State.
U.S. Attorney Oberly thanked U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their hard work, and stated, “No matter the distance we must travel or the nationality of the defendant, those individuals that want to profit themselves by unlawfully obtaining and exporting items designated by the United States as defense articles will be prosecuted. It is important that we take all necessary steps to prevent our military technology from being exported and possibly used against our service members and our allies overseas.”
“HSI will continue to deter individuals putting America's national security at risk by illegally exporting technology to prohibited countries,” said John P. Kelleghan, Special Agent in Charge of HSI Philadelphia. “Our longstanding commitment with our federal law enforcement partners to stop the illegal export of technology to prohibited countries underscores HSI’s determination to dismantle and disrupt any illegal scheme involving the illegal export of controlled military equipment.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Jamie M. McCall and Trial Attorney Mariclaire Rourke of the Counterespionage Section of the U.S. Department of Justice, National Security Division. For further information, please contact AUSA McCall at 302-573-6079.
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Rochester Man Arrested, Charged with Attempting to Entice a Minor and Attempted Production of Child PornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Todd Glenn Dean, 50, of Rochester, N.Y, was arrested and charged by criminal complaint with attempting to entice minor to engage in sexual acts, and attempting to produce child pornography. The charges carry a minimum penalty of 25 years in prison and a maximum of life.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that Dean approached a minor in September 2014. The minor notified his mother who then contacted law enforcement. According to the complaint, the Federal Bureau of Investigation’s Child Exploitation Task Force initiated undercover communications with the defendant, posing as a 15 year-old boy named “Tyrell.” During chats with “Tyrell,” Dean promised to buy “Tyrell” a phone if he had sex with him. Eventually, an arrangement was made to meet at the Genesee Valley Park for sex. Anticipating the meeting, Dean wrote, “have a great day at school . . . can’t wait to hookup.”
The defendant is being detained pending a detention hearing on October 16, 2014 at 2:30 p.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint is the culmination of an investigation by Special Agents of Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Ringling Man Pleads Guilty to Illegal Receipt of FirearmRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that CODY BRANSON BARNES, age 22, of Ringling, Oklahoma, pled guilty to Illegal Receipt of a Firearm by a Person Under Felony Indictment or Information, in violation of Title 18, United States Code, Sections 922(n) and 924(a)(1)(D).
The charge arose from an investigation by the Ardmore Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in July, 2014.
The Indictment alleged that on or about January 31, 2014, within the Eastern District of Oklahoma, the defendant, who was then under indictment and information for a crime punishable by imprisonment for a term exceeding one year, namely, Assault and Battery with a Dangerous Weapon, in the District Court of Jefferson County, Case No. CF-13-37, willfully received a firearm which had been shipped and transported in interstate commerce.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report.
The statutory range of punishment is not more than 5 years imprisonment and/or up to a $250,000.00 fine. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Chris Wilson represented the United States.
Renton Man Sentenced to a Year in Prison for Illegally Collecting Nearly $220,000 in Social Security BenefitsRead the Press Release
A 67-year-old Renton, Washington man who illegally collected his father’s Social Security benefit checks for 17 years after his father’s death was sentenced today to a year in prison, announced Acting U.S. Attorney Annette L. Hayes. PATRICK M. DERRICK pleaded guilty to theft of public funds in May 2014, admitting that for 17 years following his father’s death he continued to collect and spend the Social Security payments that were wrongly deposited in his father’s bank account. In order to execute the fraud, DERRICK repeatedly forged his father’s signature on bank documents. At sentencing U.S. District Judge Ricardo S. Martinez noted that Social Security funds are public money set aside for the needy and disabled. DERRICK “stole from the most vulnerable who need these benefits to survive,” Judge Martinez said.
According to records filed in the case, DERRICK’s father died in November 1996. DERRICK never informed the Social Security Administration (SSA) of his father’s death. Monthly benefits continued to be paid into the father’s bank account, and DERRICK would withdraw the money by writing a check to himself and forging his father’s signature. He stole 201 monthly Social Security payments totaling $219,032. In September 2013, SSA learned of the father’s death. When interviewed by federal agents, DERRICK initially denied knowing about the payments to his father’s account and denied taking the money. DERRICK had a 21-year military career, followed by a 17-year career with Boeing. Prosecutors argued that this was not a case where the defendant was living on the margins and needed the extra money to survive.
Addressing the court, DERRICK said he started taking the money to “make ends meet” between his military and Boeing careers, and never seemed to be able to catch up with the bills. He admitted using the money to pay college tuition for his daughter and to make donations to his church. He said it is a relief that the “wait for the knock on the door is over.”
The Western District of Washington is a national leader in pursuing fraud on Social Security benefit programs. Eight other defendants have been charged over the last 18 months with theft of government funds for fraudulently collecting Social Security benefits for years after their parents’ death. As a result of the prosecutions, courts in this district have ordered in excess of $1 million in restitution to the United States. The following are the longest running of these frauds:
RAYMOND C. O’DELL, 70, who now resides in Arizona, was sentenced to six months in federal prison, six months of home detention, $188,436 in restitution and a $20,000 fine for theft of government funds. O’DELL’s mother died in November 1989, but he failed to notify Social Security and benefits continued to be paid into their joint account. On at least two occasions between November 1989 and June 2012, O’DELL contacted the Social Security Administration to update his mother’s contact information and never informed anyone of her death.
PATTY BUCHANAN, 57, is one of the largest Social Security benefit fraud cases prosecuted as part of the initiative in the Western District of Washington. BUCHANAN’s father died in May 1993, but she continued to receive and cash his benefit checks using a check cashing business. She told the outlet her father was infirm and homebound and that she had power of attorney. Every month for 19 years she cashed the checks – in all, 235 checks for a total of $239,083. When one of the tellers at the check cashing business became suspicious, BUCHANAN forged a fraudulent power of attorney document. When staffers at the outlet called to try to speak with BUCHANAN’s father, BUCHANAN had a male friend pretend to be her father. Ultimately, an anonymous tip to Social Security ended the fraud in December 2012. BUCHANAN was sentenced to 18 months in prison in June 2013.
DENNIS JAY GORIN, 76, of Eatonville, fraudulently collected about $100,000 in Social Security benefits belonging to his mother following her death in around 2003. GORIN did not notify federal or state authorities of his mother’s death and personally disposed of his mother’s body on property in a rural area. Between 2003 and 2013, GORIN forged his mother’s signature to embezzle an estimated $100,000 worth of Social Security benefits. GORIN pleaded guilty on May 21, 2013, and was sentenced in September 2013 to ten months in prison.
CLAUDIA RUTH GREENAMYER, 72, of University Place, fraudulently collected $219,960 following the death of her mother in 1996 and her father in 2000. The payments were made to bank accounts GREENAMYER held jointly with her parents. GREENAMYER continued to use the money without telling Social Security her parents were deceased. She forged signatures to continue the theft, and when confronted by agents in February 2013, she claimed to have seen her parents one month earlier. GREENAMYER pleaded guilty to theft of government funds on May 15, 2013 and was sentenced in September 2013 to three months in prison.
DAVID MICHAEL COSTA, 77, of Sammamish, fraudulently collected $297,948 of his mother’s Social Security benefits following her death in 1989. While COSTA originally thought the payments coming to the joint bank account were from an annuity, in 1992 he learned they were Social Security payments. Rather than alert authorities and pay back the $40,000 that had wrongly been paid, COSTA continued to collect the benefits for more than 15 years. COSTA forged his mother’s name on documents and substituted his address for hers on all records, updating it three different times over the years. COSTA pleaded guilty on June 3, 2013, and was sentenced in September 2013 to ten months in prison.
These cases were investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and are being prosecuted by Assistant United States Attorney Seth Wilkinson as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office.
Randolph County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn October 7, 2014, a Randolph County man pled guilty to an indictment charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Seth T. Conway, 26, of Percy, pled guilty to a one-count indictment charging conspiracy to manufacture methamphetamine. The offense occurred between 2012 and February 2014, in Jackson, Randolph, and Perry Counties. The factual basis for the guilty plea established that Conway was involved with co-defendant Tommy Tindall and others, in the manufacture of methamphetamine. During a February 20, 2014, search of a vehicle occupied by Conway and Tindall, agents located methamphetamine-making materials, and drug paraphernalia. A later search of a residence associated with Conway and Tindall revealed methamphetamine.
The methamphetamine offense carries a penalty of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Conway is set for a sentencing hearing on January 21, 2015. Tindall, who has previously pled guilty to his role in the conspiracy, is set for a sentencing hearing on November 21, 2014.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Coulterville Police Department, Randolph County Drug Task Force, Steeleville Police Department, Percy Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Randolph County States Attorney’s Office also assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Portales Man Sentenced to Ten Years in Federal Prison for Trafficking Methamphetamine in Roosevelt County, N.M.Read the Press Release
ALBUQUERQUE – Jesus Jose Ornelas-Yanez, 39, of Portales, N.M., was sentenced yesterday to 121 months years in federal prison followed by five years of supervised release for his methamphetamine trafficking conviction. He also was ordered to pay a $17,500.00 fine.
Ornelas-Yanez was arrested on Dec. 18, 2012, on a criminal complaint alleging that he violated the federal immigration laws by re-entering the United States without permission after he previously had been deported. He has been in federal custody since that time.
On Feb. 6, 2013, Ornelas-Yanez and a co-defendant, Tomas Garcia, 56, a Mexican national illegally residing in Portales, were indicted and charged with conspiracy and possession of methamphetamine with intent to distribute. It also charged Ornelas-Yanez with unlawful reentry of a removed alien. According to the indictment, Ornelas-Yanez and Garcia conspired on Dec. 12, 2012, to distribute methamphetamine in Roosevelt County, N.M., and possessed methamphetamine on that date with the intention of distributing it to another person.
On June 26, 2013, Ornelas-Yanez entered a guilty plea to Count 2 of the indictment charging him with possession of methamphetamine with intent to distribute. Ornelas-Yanez admitted that prior to Dec. 12, 2012 he agreed to sell a pound of methamphetamine on consignment to a confidential informant and allowed the informant to send a courier to pick up the methamphetamine. The courier turned out to be a DEA agent working in an undercover capacity. Ornelas-Yanez admitted that on Dec. 12, 2012, he instructed the DEA agent to pick up the methamphetamine from Garcia at a convenience store in Portales, N.M. Subsequent lab analysis revealed that the substance obtained by the DEA agent from Garcia was 443.9 grams of actual methamphetamine.
Garcia pled guilty to Counts 1 and 2 of the indictment charging him with conspiracy and possession of methamphetamine with intent to distribute on July 17, 2013. On Oct. 17, 2013, Garcia was sentenced to 24 months in prison. He will be deported when he completes his prison sentence.
This case was investigated by the Las Cruces office of the DEA, the Roosevelt County Sheriff’s Office and U.S. Customs and Border Protection. Assistant U.S. Attorneys Lynn W.Y. Wang and Linda Mott prosecuted the case.
Pine Ridge Woman Charged with Killing A ManRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, woman has been indicted by a federal grand jury for Involuntary Manslaughter.
Sarah Lilly Brown Eyes, age 56, was indicted on August 26, 2014. She appeared before U.S. Magistrate Judge Veronica L. Duffy on September 29, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 8 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that on June 24, 2014, at Slim Buttes, Brown Eyes ran over a man with a truck, killing him.
The charge is merely an accusation and Brown Eyes is presumed innocent until and unless proven guilty.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case. Brown Eyes was detained pending trial. A trial date has not been set.
Pennsylvania Man Convicted of Selling Cocaine in BridgeportRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Mario Walton, a 33 year old Homewood, Pennsylvania native, pled guilty this week to selling crack cocaine in Bridgeport, West Virginia, United States Attorney William J. Ihlenfeld, II, announced today.
Walton faces up to 20 years in prison and a fine of up to $1,000,000.00.
An investigation by the Greater Harrison County Drug and Violent Crime Task Force led to the prosecution of Walton. Assistant U.S. Attorney Zelda Wesley is prosecuting the case on behalf of the government.
U.S. Magistrate Judge John S. Kaull presided.
Parmelee Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on October 6, 2014, by U.S. District Judge Roberto A. Lange.
Matthew Horned Eagle, age 24, was sentenced to 33 months in custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Horned Eagle was indicted for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury by a federal grand jury on May 13, 2014. He pled guilty to Assault Resulting in Serious Bodily Injury on July 14, 2014.
On April 7, 2014, in the late evening hours, Horned Eagle, who had been consuming alcohol, began arguing with his girlfriend in their bedroom. The noise awoke a child sleeping in another room and an adult female went into Horned Eagle’s room to tell them to quiet down. A physical struggle broke out between Horned Eagle and the adult female. When the victim tried to intervene, Horned Eagle stabbed her in the left thigh with a silver and black military style sword with a 17 inch blade. Horned Eagle’s actions caused a 3.5 centimeter long and 7 centimeter deep laceration to the victim’s left anterior thigh that required sutures to repair.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher prosecuted the case.
Horned Eagle was immediately turned over to the custody of the U.S. Marshals Service.
Other IndictmentsRead the Press Release
Indictment: Former Official Made $300,000
In Unauthorized Agriculture Disaster PaymentsKANSAS CITY, KAN. – A former Farm Service Agency director in Sumner County was indicted Wednesday on a charge of making $306,000 in agriculture disaster payments to applicants who had been denied approval for the money, U.S. Attorney Barry Grissom said.
Ellen A. Love, 51, Argonia, Kan., was charged with one count of unlawfully conveying federal funds. The indictment alleges the crime occurred while she worked for the U.S. Department of Agriculture as Executive Director of the Sumner County Farm Service Agency (FSA). The Sumner County FSA Service Center is located in Wellington, Kan.The USDA provides assistance to farm producers who have suffered losses as a result of agricultural disasters. One program USDA administers is the Supplemental Revenue Assistance Payments Program (SURE). To be approved, applicants must have suffered significant crop losses in a disaster-designated county and they must have had crop insurance through the Federal Crop Insurance Corporation.
Applications for SURE are reviewed by the FSA County Office Committee. The indictment alleges that in June 2013 Love processed payments to four applicants even though they had been disapproved for failing to meet SURE crop insurance requirements.
She faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Department of Agriculture, Office of Inspector General investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.Ernest Opuku Acheampong, 44, is charged with making false statements in order to obtain U.S. citizenship. The crime is alleged to have occurred Oct. 29, 2004, in Sedgwick County, Kan.
The indictment alleges he falsely stated he had never been deported. In fact, in 1994 he had applied for asylum under another name and been denied. He was ordered deported, but failed to leave the United States.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Adina Aguilar-Miranda, 25, Denver, Colo., is charged with one count of possession with intent to distribute methamphetamine and one count of interstate travel in furtherance of drug trafficking. The crimes are alleged to have occurred Sept. 23, 2014, in Ellis County, Kan.
If convicted, she faces a penalty of not less than 10 years in federal prison and a fine up to $4 million on the charge of possession with intent to distribute, and a maximum penalty of five years and a fine up to $250,000 on the other count. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Justin Russell Bennett, 29, is charged with one count of possession with intent to distribute cocaine, one count of unlawfully using a VISA card, one count of unlawfully possessing a machine to make credit cards, and one count of unlawful possession of credit cards. The crimes are alleged to have occurred Sept. 22, 2014, in Sherman County, Kan.
If convicted, he faces a maximum penalty of not less than five years and not more than 40 years and a fine up to $2 million on the cocaine charge, a maximum penalty of 10 years and fine up to $250,000 on the charge of unlawful use of a credit card, a maximum penalty of 15 years and a fine up to $250,000 on the charge of unlawfully possessing a machine to make credit cards, and a mandatory two years and a fine up to $250,000 on the charge of unlawfully using a credit card. The U.S. Secret Service investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Laron Walker, 30, Gladstone, Mo., is charged with one count of escaping from custody from the Grossman Community Corrections Center, a halfway house in Leavenworth, Kan. The crime is alleged to have occurred Sept. 17, 2014.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Jose Luis Hernandez-Hernandez, 37, a citizen of Mexico who has been living in Kansas City, Kan., is charged with four counts of transferring a false identification document and four counts of possessing a false identification document, and one count of unlawfully re-entering the United States after being deported. The crimes are alleged to have occurred in May, June, August and September 2014 in Wyandotte County, Kan.
Upon conviction, the crimes carry the following penalties:
Transferring a false identification document: Maximum penalty of 15 years in federal prison and a fine up to $250,000 on each count.
Possessing a false identification document: A maximum penalty of 10 years and a fine up to $250,000 on each count.
Unlawfully re-entering the United States: A maximum penalty of two years and a fine up to $250,000.Homeland Security Investigations investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Manuel Ramirez-Cuevas, 47, Kansas City, Kan., is charged with 10 counts of transferring false identification documents, and 10 counts of making false immigration documents. The crimes are alleged to have occurred in July and August 2014 in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 15 years and a fine up to $250,000 on each count of transferring false documents, and a maximum penalty of 10 years and a fine up to $250,000 on each count of making false documents.
Homeland Security Investigations investigated. Assistant U.S. Attorney Chris Oakley is prosecutingIn all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Operators of "Big Blue" Cockfighting Pit, in McDowell, Kentucky, Sentenced to PrisonRead the Press Release
ABINGDON, VIRGINIA – United States Attorney Timothy Heaphy and Virginia Attorney General Mark Herring announced that Walter Dale Stumbo, age 52, Sonya K. Stumbo, age 51, and Joshua Dale Stumbo, age 26, of Floyd County, Kentucky, were sentenced to prison today in United States District Court in Abingdon, Virginia, for their roles in operating the “Big Blue” cock fighting pit in McDowell, Kentucky. In addition, the Court ordered the Stumbos to forfeit $905,208.64. Law enforcement agents seized all of the Stumbos’ assets to be credited to the forfeiture.
“The Big Blue Sporting Club was a sophisticated criminal operation that collected substantial profits by abusing animals,” United States Attorney Timothy J. Heaphy said today. “The fighting birds were horribly mistreated by these defendants. Cases like this help bring illegal private gambling and animal cruelty out of the shadows. Thanks to the persistence and creativity of law enforcement, this operation has been exposed, its profits disgorged, and its operators held accountable.”
Sonya Stumbo was convicted on all counts at the conclusion of a three day trial on August 6, 2014. Walter Dale Stumbo and Joshua Dale Stumbo both pled guilty to all charges without the benefit of a plea agreement. The Stumbos each were convicted of one count of conspiring to operate an illegal gambling enterprise and illegally conduct cock fights; five counts of transporting fighting roosters across state lines; and five counts of transporting bird fighting knives across state lines. Two other co-defendants, Wesley Dean Robinson and his son, Jonathan Robinson, pled guilty pursuant to plea agreements, cooperated with law enforcement and were sentenced previously in accordance with their plea agreements. Jonathan Robinson also pled guilty to a drug distribution charge and his sentence included time for that offense. Wesley Dean Robinson was ordered to forfeit $50,000 and Jonathan Robinson was ordered to forfeit $10,000.
The sentences imposed on the five defendants in the case are as follows:
DEFENDANT TERM OF IMPRISONMENT Walter Dale Stumbo 18 months Sonya Stumbo 10 months Joshua Dale Stumbo 10 months Jonathan Robinson 12 months and 1 day Wesley Dean Robinson 6 monthsIn imposing sentence, United States District Judge James P. Jones stated “It does not enhance the human being to inflict pain on animals. It simply doesn’t. It’s something that ought to stop. There is no good purpose for it, and, as the government points out, bad things happen around these types of events -- gambling obviously occurred, people spending money that they have no business spending, and we can all imagine the grief that may occur in families and individuals who become addicted to something like this. It diminishes us as human beings to treat animals in this fashion, and I think Congress has enacted a law that deserves enforcement.”
The successful prosecution was the result of a joint undercover operation by Virginia and Federal authorities. Evidence showed that the Stumbos, Robinsons and others organized a large scale and comprehensive cock fighting operation at the Big Blue Sportsmen’s Club (“Big Blue”) in McDowell, Kentucky, which included collecting “parking fees” from spectators, entrance fees from handlers and offering for sale such services as antibiotics for fighting birds, a full-service restaurant for spectators, cock houses for rental, and fighting gaffes for fighting cocks. The Robinsons transported birds and fighting gaffes from Wise County, Virginia, to Big Blue in Kentucky. On fight weekends at Big Blue, spectators and handlers traveled from Virginia, North Carolina, South Carolina, Michigan, Ohio, West Virginia, Maryland, Georgia and other states. Spectators and participants were only allowed entry if they held a valid membership card. Each person was charged a one-time fee of $20 for the membership card. Entry fees to participate in the fighting were as high as $2,500 per entrant. At times, over 400 people attended and paid the $20 “parking fee.” While fights were taking place and after spectators had arrived, Dale Stumbo caused a bulldozer to be placed on the entrance road to the pit. The bulldozer remained in place until the fights concluded. Investigators executed search warrants on May 3, 2014, the second day of a two day derby billed as the “World Championship” and seized over $100,000 in cash from the Stumbos’ home near McDowell, Kentucky. Assistant United States Attorney Randy Ramseyer and Special
Assistant United States Attorney/Virginia Assistant Attorney General Michelle Welch prosecuted the case on behalf of the United States. The case is being investigated by the United States Department of Agriculture – Office of Inspector General, the Virginia Alcohol Beverage Control Bureau of Law Enforcement, and the Spotsylvania County Sheriff’s Office. In addition, the following agencies assisted in the arrests or related proceedings: Virginia Animal Fighting Task Force; Virginia State Police Tactical Team; Southwest Virginia Regional Task Force; Botetourt County Commonwealth’s Attorney’s Office; Wise County, Virginia, Sheriff’s Office and Commonwealth’s Attorney’s Office; Virginia State Veterinarian’s Office; United States Homeland Security Investigations; Kentucky State Police; the United States Attorney’s Office for the Eastern District of Kentucky; and the American Society for the Prevention of Cruelty to Animals.
New Orleans Woman, Qiana Anderson, Sentenced for Conspiracy to Commit Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that QIANA ANDERSON, 35, a resident of New Orleans, was sentenced today after having previously pled guilty to conspiracy to commit wire fraud.
U.S. District Judge Jane Triche Milazzo sentenced QIANA ANDERSON to two years probation. In addition, ANDERSON was ordered to pay $18,810 in restitution to the Gulf Coast Claims Facility (GCCF) which was established by BP Exploration and Production, Inc. (BP) concerning the April 10, 2010 explosion on the Deepwater Horizon. Co-defendant CURTIS ANDERSON is scheduled to be sentenced on October 16, 2014, before Judge Milazzo.
According to court documents, between September 2010 and January 3, 2011, the ANDERSONs submitted false documents and made false statements to the GCCF in support of their claim that CURTIS ANDERSON’s janitorial business lost income as a result of the BP oil spill.
U.S. Attorney Polite praised the work of the Secret Service and FBI in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
New Iberia Man Sentenced to 15 Months in Prison for Failing to Update Sex Offender RegistrationRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that a New Iberia man was sentenced to 15 months in prison for failing to update his sex offender registration.
Rodger Dale Seilhan, 63, of New Iberia, La., was sentenced by U.S. District Judge Richard T. Haik for one count of failure to register pursuant to the Sex Offender Registration and Notification Act. He was also sentenced to 10 years of supervised release. According to evidence presented at the May 14, 2014 guilty plea, after failing to report his whereabouts to authorities for two years, the U.S. Marshals Service and other law enforcement agencies located Seilhan in New Iberia at a relative’s residence. He was arrested on March 11, 2014. The Travis County Sheriff’s Office in Texas arrested Seilhan on January 21, 1982 for aggravated sexual assault of a child, and he was later sentenced to 15 years in prison. After being released from prison, Seilhan reported residence changes to authorities while he lived in Texas until September 5, 2012. He was found to not be living at his last known address in Willis, Texas, after a sex offender verification check was conducted.
The U.S. Marshals Service, Travis County Sheriff’s Office, Texas Department of Public Safety, Montgomery County Sheriff’s Office, and Louisiana State Police conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
New Haven Couple Pleads Guilty to Federal Charges Stemming from Bankruptcy Fraud and Tax Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and William K. Harrington, U.S. Trustee for Connecticut, New York, and Vermont (Region 2), today announced that JASON SHEEHAN, 41, and his wife, GLORVINA CONSTANT, 35, of New Haven, have pleaded guilty in Hartford federal court to charges stemming from an extensive bankruptcy fraud and tax fraud scheme.
“Instead of helping his fledgling company to emerge from bankruptcy, Jason Sheehan looted it, embezzled funds, and stole millions from taxpayers,” stated U.S. Attorney Daly. “Gloria Constant siphoned hundreds of thousands of dollars from the company’s bankruptcy estate by way of a no-show job, some of which was used to purchase a large home for her family while the company was failing. I commend the diligence of our Bankruptcy Fraud Working Group, which uncovered this scheme, and continues to unearth similar schemes that victimize not only creditors, but all citizens.”
“Fraud and dishonesty in bankruptcy proceedings undermine the integrity of this important system,” stated IRS Criminal Investigation Special Agent in Charge Offord. “Through his false statements to both the IRS and U.S. Bankruptcy Court, Mr. Sheehan evaded the payment of millions of dollars in employment taxes for his own personal gain. IRS and our law enforcement partners will continue to vigorously investigate those who willfully engage in this type of bankruptcy and tax fraud.”
“Put simply, Sheehan and Constant committed crimes on top of crimes,” stated FBI Special Agent in Charge Ferrick. “The extent to which this couple deceived the bankruptcy court and made misrepresentations to the IRS speaks to their total disregard for the law. Fortunately, as is typical in document intensive investigations, the paper trail was overwhelming. Unfortunately, many hardworking people employed by Infinistaff lost their jobs. Together with the U.S. Attorney’s Office, the FBI and IRS make a formidable team and will pursue and bring to justice those who so willfully violate our country’s bankruptcy and tax laws.”
“This case is an excellent example of the collaborative efforts of the Bankruptcy Fraud Working Group to combat fraud and abuse in our nation’s bankruptcy system,” stated U.S. Trustee Harrington. “The U.S. Trustee Program and its law enforcement partners are committed to protecting the integrity of the bankruptcy system.”
SHEEHAN pleaded guilty yesterday to one count of willful failure to collect, account for and pay tax, one count of embezzlement from a bankruptcy estate and one count of making a false declaration statement under penalty of perjury in a bankruptcy case.
According to court documents and statements made in court, SHEEHAN was the sole member of a limited liability company known as Infinistaff, LLC, which provided temporary workers to employers. In September 2010, Infinistaff filed a voluntary chapter 11 bankruptcy petition with the Connecticut Bankruptcy Court. As part of the bankruptcy case, SHEEHAN filed operating reports that falsely claimed that another company was being paid to process Infinistaff’s payroll checks and to prepare and file its payroll tax returns and tax payments. During this time, SHEEHAN also falsely represented to the Internal Revenue Service that this other company was making tax deposits under its taxpayer identification number. Although Infinistaff had such an arrangement with the other company for a period of time, the arrangement was terminated at the time SHEEHAN made these representations. After the arrangement with the other company was terminated, SHEEHAN continued to file operating reports with the bankruptcy court indicating that the arrangement was still in place, and that this other company was being paid monthly “administration fees.” SHEEHAN filed these reports in order to conceal his embezzlement of over $1 million from Infinistaff’s bankruptcy estate.
In addition, between 2011 and 2013, Infinistaff failed to account for and pay to the IRS more than $2.5 million in employment taxes the company had withheld from employee paychecks, and also failed to pay approximately $1.4 million in employer payroll taxes.
The investigation further revealed that CONSTANT received Infinistaff payroll checks totaling $354,000 during the bankruptcy proceedings even though she performed no work for the company.
SHEEHAN and CONSTANT used the stolen money to support a lavish lifestyle, including foreign travel and the purchase a $650,000 home in CONSTANT’s name.
CONSTANT pleaded guilty on October 6 to one count of conspiracy to commit bank fraud.
According to court documents and statements made in court, in 2013, CONSTANT purchased a home using proceeds from a $390,000 mortgage loan she obtained from a local bank, as well as approximately $260,000 embezzled by SHEEHAN from the Infinistaff bankruptcy estate. The mortgage loan application falsely stated that CONSTANT worked for Infinistaff and earned approximately $16,000 per month, when in fact, she did not work for Infinistaff at all. After a bankruptcy trustee was appointed in the Infinistaff bankruptcy case and the company was no longer operating, CONSTANT applied for a second mortgage loan of $131,000 from the bank. CONSTANT again misrepresented on the loan application that she was employed by Infinistaff and earning a substantial salary.
SHEEHAN is scheduled to be sentenced by U.S. District Judge Alvin W. Thompson on December 31, 2014, at which time he faces a maximum term of imprisonment of 15 years. CONSTANT is scheduled to be sentenced by Judge Thompson on January 6, 2015, at which time she faces a maximum term of imprisonment of five years.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division and the Federal Bureau of Investigation, with the assistance of the U.S. Trustee Program.
The U.S. Trustee Program is the Department of Justice component that promotes and protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the civil bankruptcy laws. Members of the public can report suspected bankruptcy fraud via email to [email protected].
In the District of Connecticut, the U.S. Attorney’s Office coordinates a Bankruptcy Fraud Working Group that includes representatives from the U.S. Attorney’s Office, the Office of the U.S. Trustee, the Internal Revenue Service – Criminal Investigation Division, the Federal Bureau of Investigation, the U.S. Secret Service, and the Social Security Administration Office of the Inspector General.
This case is being prosecuted by Assistant U.S. Attorney Ann M. Nevins and Senior Litigation Counsel Richard J. Schechter.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]N. J. Man Sentenced for Transporting Rhode Island Minor to New Jersey to Engage in Criminal Sexual ActivityRead the Press Release
PROVIDENCE, R.I. – Daniel Berger, 28, of Haskell, New Jersey, was sentenced today to 87 months in federal prison for travelling interstate for the purpose of engaging in illicit sexual conduct with a 13-year old female, announced United States Attorney Peter F. Neronha; Vincent B. Lisi, Special Agent in Charge of the Boston field office of the FBI; Portsmouth, R.I., Police Chief Thomas F. Lee; and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
At sentencing, U.S. District Court Judge Mary M. Lisi also ordered Berger to serve 15 years of supervised release upon completion of his prison term, to register as a sex offender and to pay restitution to the victim’s family in the amount of $909.39, for expenses incurred by the family as a result of this crime.
Berger pled guilty on July 18, 2014, to one count of transportation in interstate commerce for the purpose of engaging in illicit sexual conduct with a minor.At the time of his guilty plea, Berger admitted to the court that on July 24, 2013, he traveled from New Jersey to Portsmouth, Rhode Island, to meet with a 13-year-old girl he befriended on the Internet. Berger admitted to the court that he transported the girl to his residence in Haskell, New Jersey, with the intent to engage in criminal sexual activity.
Local, state and federal law enforcement from Rhode Island and New Jersey began working collaboratively to locate the victim when she was reported missing on the morning of July 24, 2013. At approximately 12:30 a.m. on July 25, 2013, the victim was located by FBI agents at the defendant’s apartment in Newark, New Jersey.
According to information presented to the court, a roommate of Berger’s pointed out a vehicle being operated by Berger to an FBI Task Force agent. Agents subsequently stopped the vehicle and detained Berger. He has been detained since his arrest.
The case was prosecuted by First Assistant United States Attorney Stephen G. Dambruch and Assistant U.S. Attorney Milind M. Shah.
Portsmouth, R.I., Police, Rhode Island State Police and FBI agents from Providence and Newark, N.J., were assisted in the investigation and subsequent arrest of Berger by the New Jersey State Police and officers from the Ringwood, Wanaque, Paterson and Clifton, New Jersey Police Departments.###
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Contact: 401-709-5357
[email protected]Muscogee (Creek) Nation Second Chief Pleads Guilty to Embezzling from TribeRead the Press Release
TULSA, Okla. — Muscogee (Creek) Nation Second Chief Roger Dana Barnett, 53, of Bristow, pleaded guilty before United States District Court Chief Judge Gregory K. Frizzell to embezzling approximately $150,000 from the Tribe, announced U.S. Attorney Danny C. Williams Sr. for the Northern District of Oklahoma. Barnett was indicted on August 6, 2014.
Barnett admitted that, from April 2013 through April 2014, he embezzled more than $1,000 of the Muscogee (Creek) Nation funds from the Tribe’s Direct Assistance Fund, a tribal executive branch fund meant to aid tribal citizens in need.
The Government told the court it estimated the loss and restitution amounts to be approximately $211,000. The Government also told the court the direct assistance funds were embezzled by Barnett when he went to area casinos and withdrew the funds from ATMs. Barnett admitted he then used the money to gamble.
At the time of sentencing, Barnett faces the statutory maximum penalty of five years in prison and a $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Shannon Cozzoni and Trent Shores on behalf of the United States.
Mitten Rock, N.M., Woman Sentenced to Prison for Federal Involuntary Manslaugher ChargeRead the Press Release
ALBUQUERQUE – Patrica Benally, 37, an enrolled member of the Navajo Nation who resides in Mitten Rock, N.M., was sentenced this morning to 46 months in federal prison followed by two years of supervised release for her involuntary manslaughter conviction.
Benally was arrested on Feb. 5, 2014, on a criminal complaint charging her with involuntary manslaughter of a four-year-old Navajo child on the Navajo Indian Reservation. Benally was charged by indictment for involuntary manslaughter on Feb. 26, 2014.
According to court filings, Benally was intoxicated when the vehicle she was driving was involved in a rollover collision near mile marker 72 on U.S. Highway 491 south of Shiprock, N.M. The victim was one of five passengers, four of whom were young children, in Benally’s vehicle at the time of the collision. Benally’s blood alcohol content was .237 shortly after the collision.
On April 23, 2014, Benally admitted killing the victim while driving under the influence of alcohol. According to the plea agreement, Benally was driving intoxicated at a high rate of speed when she fell to sleep and lost control of the vehicle, causing it to roll over and crash. The victim was killed as a result of the crash.
The case was investigated by the Albuquerque and Farmington offices of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Missouri Woman Sentenced for Health Care FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced that today, Tisa V. Vaughn, 49, of Florissant, Missouri, was sentenced on a one-count indictment charging that she engaged in a scheme to commit health care fraud. On March 19, 2014, a jury found Vaughn guilty after a three-day trial in federal court. Today, the district court sentenced Vaughn to fifteen months in federal prison, to be followed by three years of supervised release. Vaughn was also ordered to pay $14,873.56 in restitution back to the State of Illinois and a $100 special assessment.
Evidence showed that Vaughn was the personal assistant for her sister, a Medicaid recipient, who resides in East St. Louis. It was shown at trial that Vaughn billed for hours of care when she was either not caring for her sister or when her sister was actually in the hospital. Furthermore, testimony indicated that the sisters split the payments that Vaughn billed and received from the Home Services Program for the State of Illinois. In today’s sentencing, the district court commented that the sentence was higher than usual because Vaughn had obstructed justice by having her sister lie about the fraud scheme to authorities.
“Nationwide, the biggest fraud problem in the Medicaid program has been these personal assistant programs which represent the number one fraud complaint to state Medicaid fraud units. Especially vulnerable to fraud are programs, such as the one implemented in Illinois, which allow the Medicaid recipient to control the selection and payment of personal care attendants. In most cases, the personal care assistant is a relative or family friend, who often is a ghost employee. In a typical fraud scenario, the scam payments made by the State of Illinois are split between the Medicaid recipient and the ghost employee. The terrible effect of this fraud is that it draws much-needed funds away from those who are truly deserving. It is for that reason that my office will continue to try to root out and prosecute these offenders. Unless you want to be a convicted felon, my advice is, simply, do not steal.” said United States Attorney Wigginton.
The investigation was conducted by the U.S. Department of Health and Human Services Office of Inspector General and the Illinois State Police - Medicaid Fraud Control Bureau. The case was prosecuted by Assistant United States Attorneys Michael J. Quinley and Liam Coonan.
Mexican Citizen, Antonio Rodriguez-gallardo, Charged with Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ANTONIO RODRIGUEZ-GALLARDO, age 32, a citizen of Mexico and most recently residing in Houma, Louisiana, was charged today in a one-count indictment with illegal reentry of a removed alien, in violation of 8 U.S.C. ' 1326(a).
According to the indictment, RODRIGUEZ-GALLARDO reentered the United States on or about September 4, 2014 after having been previously removed on October 29, 2012.
If convicted, RODRIGUEZ-GALLARDO faces a maximum term of imprisonment of two years, a maximum fine of $250,000, a maximum term of supervised release of one year, and a mandatory $100 special assessment.
U. S. Attorney Polite reiterated that an Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security, Immigration and Customs Enforcement and Removal Operations in investigating this matter. Assistant U. S. Attorney Spiro G. Latsis is in charge of the prosecution.
(Download Indictment )
Mescalero Apache Man Pleads Guilty to Federal Assault ChargeRead the Press Release
ALBUQUERQUE – Clay Samson Geronimo, 26, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., pleaded guilty last week in federal court in Las Cruces, N.M., to a federal assault charge. Geronimo entered his guilty plea on Oct. 10, 2014, without the benefit of a plea agreement.
Geronimo was arrested on Feb. 21, 2014, on a criminal complaint alleging that he assaulted a Mescalero Apache woman on Jan. 12, 2014, on the Mescalero Apache Reservation in Otero County, N.M., and caused her to suffer serious bodily injuries. Geronimo was indicted on March 3, 2014, and charged with assault resulting in serious bodily injury.
Court filings reflect that on Jan. 12, 2014, Geronimo assaulted the victim by striking her in the face with his fists. As a result of the assault, the victim sustained a fractured eye socket and fractured nasal bones, which required surgical treatment. Geronimo was arrested on tribal charges on Jan. 12, 2014, and entered a no contest plea in Mescalero Tribal Court.
Geronimo has been in federal custody since his arrest on Feb. 21, 2014 and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Geronimo faces a statutory maximum sentence of ten years in federal prison.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
McCandless Man Sentenced to 88 Months in Prison for Receiving Pornographic Images of MinorsRead the Press Release
PITTSBURGH - A North Hills resident has been sentenced in federal court to 88 months imprisonment, to be followed by 12 years supervised release, on his conviction of receipt of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Mark Janosko, 48, of Pittsburgh, Pennsylvania.
According to information presented to the court, on or about July 3, 2013, Janosko received images containing material depicting the sexual exploitation of minors.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Pennsylvania State Police, the Indiana County and Allegheny County District Attorney’s Offices and the McCandless Police Department for the investigation leading to the successful prosecution of Janosko.
This case was brought as part of the 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 information about Project Safe Childhood, please visit www.justice.gov/psc.
McAlester Woman Pleads Guilty to StalkingRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that TONI SHNEA FOURKILLER, age 31, of McAlester, Oklahoma, pled guilty to Stalking, in violation of Title 18, United States Code, Sections 2261A(1), 2261 and 2.
The charge arose from an investigation by the McAlester Police Department. The defendant was indicted in September, 2014.
The Indictment alleged that on or about March 23, 2014, in the Eastern District of Oklahoma, the defendant, left Indian country, with the intent to injure, harass, intimidate, and place under surveillance with intent to injure, harass, or intimidate another person, and in the course of, and a result of such travel, engaged in conduct that placed P.S. in reasonable fear of serious bodily injury to himself and caused P.S. serious bodily injury and substantial emotional distress.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report.
The statutory range of punishment is not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Chris Wilson represented the United States.