Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
21 November 2014
Tax Return Preparers Convicted at Trial on Conspiracy and Tax OffensesRead the Press Release
FORT WORTH, Texas — Two Fort Worth, Texas, tax preparers were convicted at trial on all 34 counts of a superseding indictment charging conspiracy and other tax offenses, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to evidence presented at trial, Ramona C. Johnson managed/operated a tax preparation business in Fort Worth that was known, among other names, as Tax Office One. Johnson’s daughter-in-law, Nekia N. Everson, was a return preparer for the business.
Johnson and Everson were each convicted on Wednesday on one count of conspiracy to aid and assist in the preparation and presentation of a false tax return. Johnson was also convicted on 26 counts of aiding and assisting in the preparation of a false tax return and two counts of filing false tax returns. Everson was also convicted on five counts of aiding and assisting in the preparation and presentation of a false tax return.
The government presented evidence that Johnson and Everson, and those working with them, prepared and filed false and fraudulent tax returns that included various false and fraudulent schedules, deductions, exemptions, and credits with the goal of reducing the amount of taxes owed by the taxpayers and obtaining larger refunds for the taxpayers than they were entitled to receive. As a result of the larger refunds, Johnson and Everson were able to charge higher fees for preparing returns, build client loyalty, and increase business through client referrals.
In some instances, Johnson and Everson, and those working with them, created false and fraudulent Schedule C (reporting business losses/profits) and Schedule A (reporting itemized deductions) forms to accompany the taxpayer’s Form 1040. The taxpayers would often be asked about their personal expenses, such as those incurred commuting to and from work, cell phone, automobile, clothes, etc., and then the information would be fraudulently listed on the Schedule C as business expenses or unreimbursed employee expenses on Schedule A. On some returns, Johnson and Everson would completely fabricate a Schedule C business, including income and expense items. For some taxpayers, Johnson would create a false and fraudulent Schedule C reflecting the taxpayers had a profit from a nonexistent business. This false profit, together with claimed dependents (both fraudulent and actual), would be used to claim the taxpayer was entitled to an earned income tax credit.
In other instances, according to evidence presented at trial, Johnson and those working with her would include false dependent exemptions on tax returns for some clients. Johnson, or someone working with her, would acquire various personal identities, the names and social security numbers of individuals with no connection to the taxpayer to use as false dependents on tax returns prepared for clients. When included on the tax return, the false dependents would increase the number of exemptions, increase the deduction for exemptions, and often, entitle the taxpayer to an earned income tax credit..
In addition, the government presented evidence that for calendar years 2009 and 2010, Johnson filed tax returns in which she reported total income of $2,850 and $16,906, respectively, when she well knew that the income amount was understated in that it did not include income she received for her work preparing tax returns.
Between January 2008 and October 2011, according to evidence presented at trial, Johnson’s tax preparation business collected more than $1.9 million in tax preparation fees from clients.
The conspiracy count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. Each of the remaining counts carries a maximum statutory penalty of three years in federal prison and a $250,000 fine. In addition, restitution could be ordered. Both Johnson and Everson will remain on bond pending sentencing, which is set for March 6, 2015, before U.S. District Judge John McBryde.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys Mark Nichols and Chris Wolfe are prosecuting.
Sylvania Man Sentenced to Nearly Five Years in Prison for Criminal Schemes Centered Around IHOP RestaurantsRead the Press Release
Mazen Khdeer was sentenced to nearly five years in prison for his role in a series of criminal schemes that money laundering, identity theft, alien harboring and arson, centered around seven IHOP restaurants in northwest Ohio and Indiana, law enforcement officials announced today.
Khdeer, 55, of Sylvania, was also ordered to pay $1.3 million in restitution and to forfeit two properties. He previously pleaded guilty to 13 counts, including money laundering, malicious use of fire, conspiracy to harbor aliens, identity theft, conspiracy to commit health care fraud and filing false claims..
Khdeer was the last of 18 people to be sentenced for their roles in a series of criminal schemes that resulted in losses of more than $3 million.
“These defendants turned pancakes houses into crime dens,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “These defendants engaged in a range of crimes ranging from harboring undocumented workers to identity theft to money laundering to insurance fraud.”
"Today is the final sentencing of 18 individuals who utilized a chain of IHOP restaurants as their platform to engage in organized crime," said Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office. "This wraps up years of tenacious investigative and prosecutorial work by all agencies involved."
Other sentences included Tarek “Terry” Elkafrawi, whe was sentenced to eight years in prison, Tarek Eid Omar, who was sentenced to more than four years in prison, and Jose Leon-Gonzalez, who was sentenced to more than three years in prison
Elkafrawi owned seven IHOP restaurants in Evansville, Indiana and Holland, Toledo (two locations), Findlay, Perrysburg and Lima, Ohio. He and others used their control of the restaurants to execute various criminal activities to fraudulently manipulate sales figures, salaries and payrolls to evade taxes, avoid paying royalties and illegally divert money from the IHOP franchises to themselves, according to court documents.
Elkafrawi employed about 200 illegal immigrants to work at his restaurants, most of whom used fraudulent or stolen identities while working. He and others employed several people to arrange for the arrival of the workers. If the worker had false paperwork or documentation, the manager would accept it without verification; if they did not have documentation, Elkafrawi and others would arrange for Carlos Gonzales and others to obtain fraudulent documentation for the workers, according to court documents.
Elkafrawi also arranged for managers to cash payroll checks for the illegal workers. Elkafrawi and others assigned second identities to workers to avoid paying overtime wages and reduce the restaurants’ payments to the Ohio Bureau of Workers Compensation. They were also able to underpay the undocumented workers because they knew the workers would not complain or report them to law enforcement. Overall, Elkafrawi and others were able to generate $1.2 million in unreported income by manipulating wages and underreporting income of undocumented workers, according according to court documents.
In 2008, the Findlay IHOP burned as the result of arson. The fire was started by Gonzales at the direction of Elkafrawi and a Khdeer to facilitate an insurance fraud scheme. Elkafrawi claimed approximately $1.3 million in fraudulent insurance claims, based in part on inflated payroll claims, lost income and invoices, according to court documents.
Khdeer used two identities to split his salary from the restaurants between two paychecks, creating lower reportable income for both. Using those identities, he claimed approximately $140,000 in Medicaid payments and $35,000 in food stamps and welfare benefits from the state of Ohio. Khdeer and Elkafrawi created a false property company to which Khdeer paid “rent” to Elkafrawi to show a lower income. Elkafrawi and Khdeer sanctioned and encouraged employees to file fraudulent claims, according to court documents.
This case is being prosecuted by Assistant United States Attorneys Duncan T. Brown following an investigation by the Federal Bureau of Investigation, Immigration and Customs Enforcement – Homeland Security Investigations, Internal Revenue Service, the Ohio Bureau of Worker’s Compensation and Toledo Police.
- Stolen Identity Tax Refund Fraud Scheme Lands Another Under Federal Indictment
Southern District of Ohio U.S. Attorney’s Office Collects $187 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
COLUMBUS – U.S. Attorney Carter Stewart announced today that the Southern District of Ohio collected more than $187 million in criminal and civil actions in Fiscal Year 2014, which ended on September 30. The Southern District of Ohio earned the 7th greatest amount of collections of the 93 U.S. Attorney’s Offices nationwide. Of the $187 million, approximately$181.3 million was collected in criminal actions and approximately $5.9 million was collected in civil actions
Additionally, the Southern District of Ohio worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional$16.2 million in civil cases pursued jointly with these offices.
Attorney General Eric Holder announced Wednesday that the Justice Department collected $24.7 billionin civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents nearly eight and a half times the appropriated $2.91 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.“Every day, the Justice Department’s federal prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And this result shows the fruits of the Justice Department’s tireless work in enforcing federal laws; in protecting the American people from violent crime, national security threats, discrimination, exploitation, and abuse; and in holding financial institutions accountable for their roles in causing the 2008 financial crisis.”
“The collection figures in the Southern District of Ohio and nationwide are significant,” Stewart said. “These numbers represent our work in both our criminal and civil components and highlight our dedication to protecting our communities.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Six Defendants Indicted in Alleged Plot to Collect $40,000 Business Debt by Assaulting Former Restaurant EmployeeRead the Press Release
CHICAGO — Six men were indicted on federal charges alleging a plot to force a former employee of a now-closed suburban restaurant to pay a business debt of approximately $40,000, federal law enforcement officials announced today. On June 1 of this year, five of the six defendants allegedly physically assaulted the victim outside a different restaurant in Aurora, where the victim was working at the time, simultaneously punching and kicking him in the head and body after he was knocked to the ground.
All six defendants were charged with one count of conspiracy to collect credit by extortionate means, and five of the six were also charged with one count of extortionate collection of credit by the use of violence and threats of violence, in a two-count indictment that was returned by a federal grand jury yesterday.
An arrest warrant is outstanding for JINHUANG ZHENG, 31, aka “Benny,” of Indianapolis, who was an owner and employee of a restaurant supply company in Indianapolis. MINGRUI SUN, 20, of Chicago, was arrested today, and BING LIANG CHEN, 26, also known as “Michael,” and DANIEL ZHU, 19, both also of Chicago, were arrested in August. JACK WU, 24, of Chicago, voluntarily surrendered today, and SHENG QUAN DONG, 41, aka “Peter,” is scheduled to be arraigned on Wednesday in U.S. District Court. Sun, Chen, Zhu, and Wu all remain in federal custody pending further court proceedings.
According to the indictment, before June 1, the victim was an employee of Restaurant A, which had locations in Naperville and Lombard, both of which are now closed. Restaurant A owed approximately $40,000 to Zheng’s Company A in Indianapolis. At the time of the attack, the victim worked at Restaurant B in Aurora, which had no affiliation with Restaurant A.
In May of this year, Zheng allegedly discussed the business debt with Dong and showed him paperwork evidencing the debt. In May and early June, Zheng and Dong allegedly recruited Chen, Zhu, and Sun to help collect the debt owed to Company A from the victim. On June 1, these five defendants met in Chicago’s Chinatown neighborhood to discuss the debt, agreed to work together to obtain payment from the victim through violence and threats of violence, and then traveled together to Aurora to confront the victim and to intimidate him into paying the debt, the indictment alleges.
During the June 1 assault, one of the defendants allegedly told the victim, in essence, that if he did not pay, he was going to die.
After the victim refused to pay the debt and was beaten, Chen allegedly recruited Wu ― agreeing to pay Wu $2,000 ― to return to the Aurora restaurant with him to again threaten the victim into paying the debt. In June and July, Chen and Wu allegedly drove to Aurora three times to confront the victim about the debt. On July 9, Chen allegedly threatened to break the windows of Restaurant B if another employee did not provide the victim’s telephone number. That same day, Chen and Wu allegedly followed the second employee to that employee’s home in an effort to learn where the victim lived.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Chicago and Aurora police departments assisted in the investigation.
Each count of the indictment carries a maximum penalty of 20 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant United States Attorney Steven Dollear.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
- Several Members of South Laredo Trafficking Group Plead Guilty
Scheme to Harbor Illegal Aliens Results in SettlementsRead the Press Release
United States Attorney Brendan V. Johnson announced that civil settlements have been reached with five individuals from Rapid City, South Dakota, who submitted false claims to the United States Forest Service (USFS). The scheme involved employing and harboring illegal aliens from 2007 to 2012, a violation of the contracts awarded to remove timber in the Black Hills of South Dakota.
The False Claims Act (FCA) imposes liability on persons and companies who knowingly submit false claims to the government or causes another to submit a false claim to the government, or knowingly makes a false record or statement to get a benefit paid by the government. Persons who submit a false claim must pay to the United States a civil penalty of not less than $5,500 and not more than $11,000 for each false claim, plus three times the amount of damages which the government sustained.
Angel Munoz-Escalante and Barbara Munoz, d/b/a Munoz Logging and Construction Company; Rogelio Escalante Sr., d/b/a Escalante Logging and Services; Rogelio Escalante Jr., d/b/a Escalante Logging and Thinning Company; and Raul Munoz, d/b/a R Munoz Thinning, were awarded numerous USFS service contracts to thin unhealthy stands of timber in the Black Hills National Forest for the general purpose of protecting the national forest resources. The USFS service contracts stated, in part, that the Immigration and Nationality Act (INA), 8 U.S.C. § 1324a, makes it “unlawful for an employer to hire unauthorized aliens,” instructs contractors to have employees verify eligibility for employment, examine and retain documents used for verifying eligibility, and makes compliance with INA a material condition of the USFS contracts. These individuals submitted contract invoices for payment with certifications which contained material false statements that the work was done in accordance with contract terms. The work was not performed in accordance with contract terms, because they knowingly employed undocumented aliens and submitted false statements.
As a result of criminal investigations conducted by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations, in cooperation with the U.S. Forest Service, Rapid City Police Department, Pennington County Sheriff’s Office, South Dakota Division of Criminal Investigation, Custer County’s Sheriff’s Office, U.S. Department of Labor, and other federal and state law enforcement agencies, and the subsequent criminal convictions for the same conduct, the United States was able to reach civil settlements with these individuals for these contract violations under the FCA.
For submitting false claims to the USFS, these individuals have given the United States consent judgments and agreed to make payments over a period of years as follows:- Rogelio Escalante Sr., a total of $50,000 on or before August 1, 2015
- Angel and Barbara Munoz, a total of $375,000 by November 3, 2017
- Rogelio Escalante Jr., a total of $15,000 by September 2, 2019
- Raul Munoz, a total of $15,000 by September 2, 2019
A civil FCA complaint has been filed against two additional individuals who were also convicted, and have been sentenced for their roles in the conspiracy to harbor aliens and for false claims in connection with the USFS contracts.
The U.S. Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government. Assistant U.S. Attorneys Eric Kelderman and Sarah Collins, and Assistant U.S. Attorney Cheryl Schrempp DuPris prosecuted the criminal and civil cases respectively.
Rochester Man Sentenced for Three Robberies Involving Tops SupermarketsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Derek Stanin, 21, of Rochester, NY, who was convicted of the robbery of the three Tops Marketplace stores, was sentenced to 51 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay restitution in the amount of $7,656.
Assistant U.S. Attorney Douglas E. Gregory, who handled the prosecution of the case, stated that on January 4, 2014, the defendant robbed the Tops Marketplace store at 3507 Mt. Read Boulevard in Greece, N.Y. In that case, store clerks introduced marked bills and a GPS tracker into the monies turned over to Stanin. The GPS tracker allowed law enforcement to quickly locate the defendant who was found hiding in the backseat of a parked vehicle. Inside the vehicle, police located a large sum of cash, the GPS tracker as well as the clothes that Stanin wore during the robbery.
In the aftermath of his arrest, investigators determined that Stanin was also responsible for two additional robberies. The first occurred on October 3, 2013 at the Tops Marketplace store at 2345 Buffalo Road in Rochester and a second robbery on October 4, 2013, at the Tops Marketplace store at 128 West Main Street in Leroy, N.Y.
The sentencing is the culmination of an investigation on the part of the Federal Bureau of Investigation, the Monroe County Sheriff’s Department, under the direction of Sheriff Patrick O’Flynn, the Avon Police Department, under the direction of Chief Gary Benedict, Jr., the Greece Police Department, under the direction of Chief Patrick Phelan, the Genesee County Sheriff’s Department, under the direction of Sheriff Gary Maha and the New York State Police, under the direction of Major Scott Crosier.
Rochester Man Sentenced for Resisting and Impeding Secret Service AgentsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y. C U.S. Attorney William J. Hochul, Jr., announced today that Christopher Ludwig, 31, of Rochester, NY, who was convicted of resisting and impeding officers, was sentenced to three years probation by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who handled the case, stated that on April 26, 2012, the defendant called the Monroe County Board of Elections and made a threatening remark concerning President Barack Obama. On May 3, 2012, when Special Agents with the United States Secret Service went to Ludwig’s residence, he forcibly resisted and impeded efforts to place him under arrest.
The sentencing is the culmination of an investigation on the part of the United States Secret Service, under the direction of Acting Agent in Charge Michael Adelizzio.
Registered Sex Offender Found Guilty of Sexually Abusing Two ChildrenRead the Press Release
PHOENIX – On Nov. 19, 2014, a federal jury found Roy Red Joey, 64, of Dilkon, Ariz., a member of the Navajo Nation, guilty of two counts of abusive sexual contact with a child under the age of 12 and two counts of the commission of a sex offense by a registered sex offender. The case was tried before U.S. District Judge Steven P. Logan from Nov. 13, 2014, to Nov. 19, 2014. The defendant is detained pending sentencing, which is set before Judge Logan on Jan. 28, 2015.
The evidence at trial showed that the defendant, a registered sex offender, sexually abused a nine-year-old girl and sexually abused an eight-year-old boy on the Navajo Nation.
A conviction for abusive sexual contact with a child under the age of 12 carries a maximum penalty of life imprisonment, a $250,000 fine or both. A conviction for the commission of a sexual offense by a registered sex offender carries a penalty of 10 years imprisonment consecutive to any other sentence.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Criminal Investigator’s Office. The prosecution was handled by Cassie Bray Woo and Dimitra Sampson, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-14-8122-PCT-SPL
RELEASE NUMBER: 2014-067_JoeyFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Rapid City Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
David Eagle Bear, age 31, was indicted on November 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 18, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, at least 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Eagle Bear was previously convicted of a sex offense that required him to register as a sex offender, and he signed paperwork acknowledging that requirement. The Indictment alleges that between August 4, 2014, and October 19, 2014, Eagle Bear moved and failed to change and update his sex offender registration as required by law.The charge is merely an accusation and Bear Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Eagle Bear was remanded to the custody of the U.S. Marshals Service pending trial. No trial date has been set.
Philadelphia to Morgantown Drug Pipeline Disrupted by Federal IndictmentRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMORGANTOWN, WEST VIRGINIA – Twenty-one people involved in a Philadelphia to Morgantown heroin and painkiller distribution ring have been indicted on federal charges, United States Attorney William J. Ihlenfeld, II, West Virginia State Police Colonel Jay Smithers, and FBI Assistant Special Agent in Charge Raymond P. Duda, announced today.
Earlier this month, a federal grand jury returned a 65-count indictment charging the defendants in a scheme to bring large quantities of heroin and prescription opioids from Philadelphia to Morgantown for redistribution. This morning, the indictment was unsealed and 13 of those charged were taken into custody as part of a large arrest operation in West Virginia, Pennsylvania, and elsewhere.
The underlying investigation involved the use of sophisticated surveillance techniques, and was spearheaded by the West Virginia State Police - Bureau of Criminal Investigation. The Federal Bureau of Investigation and the Mon Valley Drug and Violent Crime Task Force were also heavily involved in the case.
Those arrested today include:
• Juwan Robert Woods, also known as “Whiz,” 31, of Philadelphia, Pennsylvania, • Qaaim Clark, also known as, “Q,” 34, of Philadelphia, Pennsylvania, • Keevus Weeks, also known as “Shake,” 31, of Philadelphia, Pennsylvania, • William Montague, III, also known as “Will,” 24, of Darby, Pennsylvania, • Kalif Briggs, also known as “Boo,” 32, of Upper Darby, Pennsylvania, • Loren Delaney, also known as “Lo,” 23, of Morgantown, West Virginia, • Keyara Peters, also known as “KP,” 21, of Riversville, West Virginia, • Britany Wodzinski, 24, of Buckhannon, West Virginia, • Ryan Buckland, 28, of Morgantown, West Virginia, • Jessie Marie Fox, 22, of Mill Creek, West Virginia, • Robert Wyatt Michael, 24, of Fairmont, West Virginia, • Tara Dustin, 23, of Morgantown, West Virginia, and
• Timothy Charles Burnette, 45, of Morgantown, West Virginia.Several individuals have not yet been located, including:
• Raheem Cuffee, also known as “Heem,” 30, of Philadelphia, Pennsylvania
• Brett Ehrhardt, 28, of Morgantown, West Virginia, • Alexander Benzel, 28, of Morgantown, West Virginia, • Terri Shuttlesworth, 24, • Erik Jones, 27, of Morgantown, West Virginia, • Alicia Tavagilone, 21, of Morgantown, West Virginia, • Ryan Brooks, 28, of Morgantown, West Virginia, and
• An unidentified individual known only as “Shadow.”Anyone with information on whereabouts of the aforementioned individuals are encouraged to contact the West Virginia State Police at (304)-285-3200, the FBI at (412) 432-4000, or the U.S Marshals Service at (304) 623-0486.
An indictment is an accusation, and all defendants are presumed innocent unless and until proven guilty.
Assistant U.S. Attorney Zelda Wesley is prosecuting the case on behalf of the government.
Owings Mills Man Sentenced to over Three Years in Prison in Bank Fraud SchemeRead the Press Release
Used Fraudulently Obtained Personal Information of over 50 Individuals
Resulting in Loss of over $180,000
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Darrick Jerome Greer, age 25, of Owings Mills, Maryland, today to 42 months in prison followed by five years of supervised release for bank fraud and aggravated identity theft. Judge Motz also ordered Greer to pay restitution of $183,846.96.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to his plea, from November 2012 to January 2014, Greer recruited individuals – unindicted coconspirators – who were often young people in financial straits. Greer offered them money in return for access to their bank accounts, by giving Greer their personal identifying information, ATM cards and PIN numbers. Greer or his associates would obtain checks from bank accounts of third parties who may or may not have been participants in the scheme.
Once Greer obtained access to the bank accounts of others, he would deposit checks fraudulently drawn from third party accounts. Then, Greer used the ATM cards and PINs given to him to access the coconspirators accounts and withdraw some or all of the proceeds of the fraudulent check deposits previously made. Greer sometimes paid his coconspirators some of the fraudulently obtained proceeds of this scheme.
Greer defrauded or used the personal identifying information of over 50 individuals, resulting in a total loss to two banks of $183,846.96.
While on release pending sentencing, Greer was arrested with a gun and subsequently indicted for being a felon in possession of a firearm. Greer had his initial appearance in U.S. District Court today on that charge and pleaded not guilty. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the Secret Service and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.
Oregon's U.S. Attorney's Office Collects Almost $12 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2014Read the Press Release
PORTLAND, Ore. - U.S. Attorney Amanda Marshall announced today that the District of Oregon collected $11,936,070.53 in criminal and civil actions in Fiscal Year 2014. Additionally, Oregon worked with other U.S. Attorneys’ offices and components of the Department of Justice to collect an additional $1,228,648.04 in cases pursued jointly with these offices.
Attorney General Eric Holder announced on November 19 that the Justice Department collected $24.7 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2014. The more than $24 billion in collections in FY 2014 represents more than eight times the appropriated $2.91 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“Every day, the Justice Department’s prosecutors and trial attorneys work hard to protect our citizens, to safeguard precious taxpayer resources, and to provide a valuable return on investment to the American people,” said Attorney General Eric Holder. “Their diligent efforts are enabling us to achieve justice and recoup losses in virtually every sector of the U.S. economy. And as a result, I can report today that – during Fiscal Year 2014 – the Justice Department collected a total of $24.7 billion in civil and criminal actions.”
“Recovering this money is a critical piece of the mission of the U.S. Attorney’s Office, and reflects the hard work our office performs tracing assets and relentlessly following leads,” said U.S. Attorney Amanda Marshall. “As our numbers show year after year, investing in our skilled investigators and prosecutors reaps enormous financial benefit to the taxpayers, to say nothing of helping to take the profit out of criminal activity in Oregon.”
Some of the cases involving significant collections activity in the past year have included:
- In the case of U.S. v. Rich, Phyllis and Michael Rich and their company, PAC Equities, were convicted of securities fraud back in 2007. The conviction resulted in a judgment for $13,400,138.79 in restitution to the more than 200 victims of their crime. In March 2014, the Financial Litigation Unit garnished $1,034,022.00 in insurance proceeds payable to Phyllis Rich after Michael Rich passed way. That garnishment---along with proceeds from sales of various real estate holdings and other collection efforts---has resulted in a total of over $9,000,000.00 in assets returned to victims of the fraud in the seven years since the convictions, providing just one example of how the U.S. Attorney’s Office continues its collection efforts on cases even years after a conviction.
- In U.S. v. Hossein Lahiji and Najmeh Vahid, a Texas attorney and her physician husband were convicted of a conspiracy to launder money and to defraud the U.S. Treasury by using a Portland-based charity to falsely claim charitable tax deductions on money that they wired to Iran in violation of the embargo. The Financial Litigation Unit collected forfeiture, restitution, and fines totaling $1,973,903 from the defendants.
- In U.S. v. Seaside Association, after the Forest Service’s Wallowa Mountains Office and Visitor Center burned to the ground, the U.S. Attorney’s Office filed suit against the building’s owner, Seaside Association, for the negligence of its contractors in causing the fire by leaving combustible drop clothes, rags and tools on a porch on a hot day. The case settled for $1,401,000, all of which has been collected, with the majority of the settlement amount paid to the Wallowa Whitman Forest for the loss of its items in the building, the costs to relocate the facility as well as reimbursement to the employees for lost personal items.
- U.S. v. Cabello – On Wednesday, March 20, 2013, a Portland family---Archie Cabello, his wife Marian and son Vincent---were convicted of stealing $3 million from an armored car that Archie Cabello was driving in December 2005. Archie Cabello was convicted of additional crimes against armored car businesses and banks. The three were ordered to pay restitution in the amount of $3,755,000 to the victims of their elaborate armored car theft scheme. During the investigation, over $1,995,000 of the stolen money was recovered from the Cabellos and forfeited. The Financial Litigation Unit facilitated the restoration of those forfeited fund to the victims of the crimes.
The U.S. Attorneys’ offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in Oregon, working with partner agencies and divisions, collected $2,885,771.00 in asset forfeiture actions in FY 2014. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. Of the $2,885,771.00 collected as part of asset forfeiture actions in the past fiscal year, $1,997,458.90 was applied to restitution to crime victims. “This provision of forfeited funds to victims of crime is a critical fact that has been largely ignored in recent negative national press reports regarding civil forfeiture actions,” said U.S. Attorney Marshall. “We cannot collect on victim restitution orders until after a defendant has been convicted and sentenced. By that point, it is usually too late to provide much financial relief to the defendant’s victims, as defendants have often hidden or transferred their remaining assets by that point. By contrast, our judicious use of civil asset forfeiture laws has allowed our office to move more quickly to secure those assets pending the resolution of a case, and to then restore those assets to the victims after the government has met its burden of proof.”
New York Man Sentenced to 41 Months in Prison Role in Multimillion-Dollar International Cybercrime SchemeRead the Press Release
Worked as ‘Casher’ for Organization that Allegedly Capitalized on
Information Hacked From Customers of More Than a Dozen Global Financial InstitutionsTRENTON, N.J. – A member of an alleged international cybercrime, identity theft and credit card fraud conspiracy was sentenced today to 41 months in prison for his role in a scheme to use information hacked from customer accounts at more than a dozen banks, brokerage firms, payroll processing companies and government agencies to attempt to steal $15 million from customers, U.S. Attorney Paul J. Fishman announced.
Richard Gundersen, 48, of Brooklyn, New York, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an indictment charging him with one count of conspiracy to commit wire fraud, access device fraud and identity theft. Judge Sheridan imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
Gundersen was asked by other members of the conspiracy to participate in a scheme to “cash out” bank accounts and pre-paid debit cards opened in the names of others. Oleksiy Sharapka, 34, of Kiev, Ukraine, allegedly directed the conspiracy with the help of Leonid Yanovitsky, 39, also of Kiev. Oleg Pidtergerya, 50, who previously pleaded guilty to his role in the conspiracy, managed a cash-out crew in New York for Sharapka and Yanovitsky, and Robert Dubuc, 41, who has also pleaded guilty to his role in the conspiracy, controlled a cash-out crew in Massachusetts. Gundersen worked as “casher” under Pidtergerya.
Hackers first gained unauthorized access to the bank accounts of customers of more than a dozen global financial institutions and businesses, including: Aon Hewitt; Automatic Data Processing Inc.; Citibank N.A.; E-Trade; Electronic Payments Inc.; Fundtech Holdings LLC, iPayment Inc.; JP Morgan Chase Bank N.A.; Nordstrom Bank; PayPal; TD Ameritrade; U.S. Department of Defense, Defense Finance and Accounting Service; TIAA-CREF; USAA; and Veracity Payment Solutions Inc.
After obtaining unauthorized access to the bank accounts, Sharapka and Yanovitsky diverted money from them to bank accounts and pre-paid debit cards they controlled. They then implemented a sophisticated cash-out operation, employing crews of individuals, including Gundersen, to withdraw the stolen funds by making ATM withdrawals and fraudulent purchases in New York, Massachusetts, Illinois, Georgia and elsewhere. Both Sharapka and Yanovitsky are under indictment in the United States and remain at large.
Gundersen admitted he was aware fraudulent accounts and cards were created without the consent of the individuals in whose names they were opened. He admitted that he opened bank accounts in the names of identity theft victims and that those accounts were funded with money stolen by other conspirators. He also admitted conducting ATM and bank withdrawals of the stolen funds and providing the proceeds of the fraud, less his own fees, to immediate higher-ups in the organization – Pidtergerya and Dubuc, who, in turn, sent a portion of the proceeds to Sharapka and Yanovitsky in Ukraine.
The government’s ongoing investigation into the organization has so far identified attempts to defraud the victim companies and their customers of more than $15 million.
In addition to the prison term, Judge Sheridan sentenced Gundersen to three years of supervised release and ordered him to pay restitution of $88,160.
U.S. Attorney Fishman credited the special agents of the U.S. Secret Service, under the direction of Assistant Special Agent in Charge Carl Agnelli; U.S Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent in Charge John P. Woods; Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Jeffery D. Thorpe, Cyber Field Office; and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s guilty pleas.
The government is represented by Economic Crimes Unit Chief Gurbir S. Grewal of the U.S. Attorney’s Office in Newark.
The charges and allegations concerning the remaining conspirators are merely allegations and they are presumed innocent unless and until proven guilty.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.
14-411
Defense counsel: Cynthia Hardaway Esq., NewarkNew York City Lawyer Sentenced for Corruptly Obstructing the I. R. S.Read the Press Release
SYRACUSE, NEW YORK - Stanley L. Cohen, an attorney with offices on Avenue D, New York City and Jeffersonville, New York, was sentenced to 18 months imprisonment today by Senior U.S. District Court Judge Norman A. Mordue in United States District Court in Syracuse, according to United States Attorney Richard S. Hartunian. His sentencing followed his earlier guilty pleas to corruptly obstructing and impeding the Internal Revenue Service and failure to file tax returns. The court imposed a12 month term of incarceration for his failure to file federal tax returns, as well, directing that sentence to run concurrently with the 18 month term on his felony plea to corruptly obstructing and impeding the Internal Revenue Service. The court also directed Cohen to serve a one year term of supervised release following completion of his sentence of imprisonment. Cohen was also ordered to pay all federal and state taxes due and owing from the years 2005 through 2010. Cohen was ordered to report to the U.S. Marshal’s Service on January 6, 2015 to begin serving his sentence.
As part of a plea agreement, Cohen previously entered a guilty plea in the Northern District of New York to corruptly obstructing and impeding the Internal Revenue Service. He also pled guilty in the Southern District of New York to charges of failure to file federal tax returns for tax years 2006 and 2007. He has agreed to waive any appeal and collateral attack of his conviction.
This case followed a lengthy investigation by the Internal Revenue Service. It was ascertained that Cohen failed to file federal and state tax returns for the years 2005-2010. He would only file an extension to file his return and make a modest payment toward taxes owed during those years, but never followed through with a final tax return. In court, at the time of his guilty plea, the government revealed that its evidence would show that in the tax year 2004, the last year defendant file a tax return, he had claimed gross receipts of $289,000 when in fact investigators ascertained that he had deposits in excess of $426,000 for that year. In the course of the investigation judicially authorized search warrants were executed at Cohen’s law office on Avenue D in New York City and his home law office at a home he had in Jeffersonville, New York. Investigators found that essentially he kept no financial records regarding receipts of fees from clients. Investigators also found that he failed from 2005 to 2010 to file either a 1099 or W2 for a law office assistant who was paid for performing services for him during those years.
Additionally a search warrant was executed on a safe deposit box that Cohen maintained in a bank in Jeffersonville, New York. A search of that safe deposit box revealed that he had $50,000 in cash within the box. An additional $15,000 in U.S. currency and $1,800 in Canadian currency was recovered from a wall safe in his home. Official bank records revealed that Cohen accessed his safety deposit box 77 times from 2006 through 2008 and had made deposits of cash totaling approximately $504,000 at that bank from 2004 to 2008. Additional investigation revealed that approximately $183,500 of that amount was deposited by Cohen on days when he visited the safety deposit box shortly before or after making the deposit. Bank records also demonstrated that on many occasions, Cohen made multi thousand dollar cash deposits at the small bank in Jeffersonville and exchanged small bills for $100 bills.
Additional evidence developed during the investigation revealed that Cohen made deposits of cash to various financial accounts as follows:
In 2004 he made in excess of $194,000 in cash deposits, in 2005 more than $237,000, in 2006 more than $321,000, in 2007 more than $395,000, in 2008 more than $405,000, in 2009, after the execution of the referenced search warrants, he deposited more than $54,000 and in 2010 more than $147,000 in cash. Many of these deposits were made in amounts under $10,000, thus avoiding the filing of currency transaction reports required under the law.
Investigators also found that Cohen would cause wire transfers of cash to be made from clients, many of whom were on the Akwesasne Reservation to his accounts. These wire transfers made from a Speedway Convenience Store on the reservation through the Money Gram service totaled more than $643,000 between October 2004 and December of 2008.
The case was investigated by the Internal Revenue Service, Syracuse Criminal Investigation Section, Drug Enforcement Administration and the New York State Police. The case was prosecuted by Assistant United States Attorneys Stephen Green and John Duncan.
For further information please contact Assistant U.S. Attorney John Duncan at 315-448-0672.
Neo-Nazi Sentenced for Sending Gruesome Threats to Florida Officials and Their FamiliesRead the Press Release
Orlando, Florida – U.S. District Judge John Antoon, II today sentenced William A. White (38, Roanoke, VA) to 17 years and 6 months in federal prison for sending interstate threats with the intent to extort and using personal information without lawful authority in furtherance of a crime of violence. This sentence will be served consecutive to a 92-month federal sentence that White is currently serving in a separate case that was prosecuted in the Western District of Virginia. A federal jury in Orlando found White guilty on September 12, 2014.
According to evidence presented during the trial, in May 2012, White, a self-professed neo-Nazi, sent a number of e-mail threats to Lawson Lamar, who was State Attorney for the Ninth Judicial Circuit of Florida at the time, Judge Walter Komanski, and a Federal Bureau of Investigation task force agent. These e-mails included threats to kidnap, rape, and kill the recipients’ family members, including children and grandchildren. The threats listed the home addresses of the officials, and specifically named some of Mr. Lamar's grandchildren as targets. Separate threats were also directed to Mr. Lamar's son, as well as to United States District Judge James C. Turk, who had presided over White's previous case in the Western District of Virginia.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and James D. Mandolfo.
Nearly A Dozen Gang Members Arrested, Indicted for ConspiracyRead the Press Release
United States Attorney Andrew M. Luger, the Hennepin County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives today announced the arrest and federal indictment of 11 individuals charged with organizing and maintaining two street gangs operating throughout Hennepin County.[1] The defendants are comprised of alleged leaders, prominent members, and close associates of the “1-9” and “Stick Up Boys” gangs; both of which worked together to illegally obtain and jointly possess firearms. The federal indictment charges the defendants with conspiracy, felon in possession of a firearm, and making a false statement during the purchase of a firearm.
“The indictment of these alleged gang members is a step forward in the fight against violent crime in Minneapolis,” said U.S. Attorney Luger. “As charged, these defendants engaged in armed robbery and drug dealing to fund the illegal purchases of firearms they used to conduct gang warfare. Minnesotans deserve to live in a community free of gangs and gang warfare. We will continue to charge armed criminal organizations in pursuit of this goal. Thanks to the hard work of our state and federal law enforcement partners, these violent defendants are now off the streets.”
“The dismantling of this criminal enterprise, which we believe to be responsible for numerous acts of violence, is a huge win for law enforcement and the residents of Hennepin County. This successful multi-agency operation should send a clear message to others that future violent crimes will be met with similar enforcement and prosecution efforts,” said Hennepin County Sheriff Rich Stanek.
“As a result of this joint local and federal investigation, a violent group has been removed from the streets of the Twin Cities,” said ATF-St. Paul Field Division Special Agent in Charge Jim Modzelewski, “ATF is committed to combating firearms violence and will continue to utilize all available resources to increase the safety in our communities.”
According to the indictment and documents filed in court, the 1-9 is led by VELTREZ BLACK, a/k/a “Chief,” and the Stick up Boys are led by TYWIN BENDER, a/k/a “Finn Winn,” NITELEN JACKSON, a/k/a “King Nite,” and DONTEVIUS CATCHINGS, a/k/a “Lil Snake.” The defendants coordinated their illegal activities in order to obtain firearms by theft, trading drugs for guns, and by using straw purchasers without felony histories to buy guns for those members of the gang with felony records.During the period of the indictment, members of the 1-9 and Stick Up Boys were in a gang war with two other rival gangs. The gang war resulted in the shooting deaths and wounding of numerous gang members on both sides of the conflict. At least fifteen alleged gang members have been killed or wounded by gunfire during the gang conflict.
According to the indictment, due to the conflict, members of 1-9 and Stick Up Boys conspired with straw purchasers to illegally acquire and jointly possess firearms. The straw purchasers, identified in the indictment as DEONTAY JONES of Brooklyn Center, and LAKESHA COLEMAN of Minneapolis, purchased at least 10 guns in their own names and provided at least some of those firearms to members of the 1-9 and Stick Up Boys. JONES filed false police reports explaining that these guns were stolen from his home, when in fact, at least two of the guns were provided to 1-9 gang members.
According to the indictment, MARQUES ARMSTONG participated in the conspiracy by making his North Minneapolis residence available as a meeting place for members of the two gangs, and as a place for them to store their guns.
The indictment is the result of an intense investigation conducted by the Hennepin County Violent Offender Task Force (VOTF), the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minneapolis Police Department. The investigation began as part of an ongoing effort to reduce gang activity connected with numerous incidents of violent crime in Hennepin County. VOTF investigators on this case include personnel from the Hennepin County Sheriff’s Office, Brooklyn Park Police Department, Brooklyn Center Police Department, Golden Valley Police Department, and Richfield Police Department.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Paulsen.
Defendant Information:VELTREZ BLACK, a/k/a “Chief,” 25
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countTYWIN BENDER, a/k/a “Finn Winn,” 24
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
NITELEN JACKSON, a/k/a “King Nite,” 24
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countDONTEVIUS CATCHINGS, a/k/a “Lil Snake,” 22
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countCINQUE OWENS, 20
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countJABARI JOHNSON, 24
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countDARRYL PARKER, a/k/a “Thirsty,” 27
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countMARQUIS WOODS, a/k/a “Quis Moe,” 22
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
• Felon in Possession of a Firearm, 1 countMARQUES ARMSTRONG, a/k/a “Lil Kease,” 19
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
DEONTAY JONES, 22
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
• False Statement During Purchase of a Firearm, 3 countsLAKESHA COLEMAN, 26
Charges: • Conspiracy- Felon in Possession of Firearms, 1 count
• False Statement During Purchase of a Firearm, 3 counts[1] The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
###
The charges contained in the indictment are merely accusations, and the defendants is presumed innocent unless and until proven guilty.
Monroe Man Sentenced to 10 years for Firearm and Drug ConvictionsRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that James
F. Ford, 59, of Monroe, was sentenced in U.S. District Court by Chief Judge John A.
Woodcock, Jr. to 10 years in prison, to be followed by 8 years of supervised release for conspiracy to manufacture marijuana, manufacturing marijuana, maintaining a drug involved premises, and being a felon in possession of a firearm. Ford was found guilty after a jury trial on
November 21, 2013.Court proceedings revealed that in November 2011 a search warrant was executed at the defendant’s home in Monroe where agents found a large and sophisticated indoor marijuana growing operation and two rifles. Trial evidence revealed that the defendant and other family members conspired to grow hundreds of marijuana plants at the residence. The defendant, a convicted felon, also illegally possessed the two rifles found at the residence.
The investigation was conducted by the Maine Drug Enforcement Agency, the Bureau of
Alcohol Tobacco and Firearms, the Waldo County Sheriff’s Office and the Maine State Police.Mission Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on November 17, 2014, by U.S. District Judge Roberto A. Lange.
Logan Lafferty, age 28, was sentenced to time served, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Lafferty was indicted by a federal grand jury on April 22, 2014, and pled guilty to the charge on August 28, 2014.
The conviction arose from a March 8, 2014, incident when a Rosebud Sioux Tribe Law Enforcement Services (RSTLES) Officer attempted to stop Lafferty’s vehicle for speeding. Lafferty refused to stop, resulting in a long pursuit that included speeds of over 110 miles per hour and involved several RSTLES Officers. When one of the officers attempted to pull alongside Lafferty to stop his vehicle, Lafferty swerved into the officer’s path and obstructed the officer from passing him safely. Lafferty used his vehicle as a dangerous weapon to assault, resist, oppose, and impede the officer.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Mission Man Sentenced for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assaulting, Resisting, Opposing, and Impeding a Federal Officer was sentenced on November 17, 2014, by U.S. District Judge Roberto A. Lange.
Logan Lafferty, age 28, was sentenced to time served, 18 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Lafferty was indicted by a federal grand jury on April 22, 2014, and pled guilty to the charge on August 28, 2014.
The conviction arose from a March 8, 2014, incident when a Rosebud Sioux Tribe Law Enforcement Services (RSTLES) Officer attempted to stop Lafferty’s vehicle for speeding. Lafferty refused to stop, resulting in a long pursuit that included speeds of over 110 miles per hour and involved several RSTLES Officers. When one of the officers attempted to pull alongside Lafferty to stop his vehicle, Lafferty swerved into the officer’s path and obstructed the officer from passing him safely. Lafferty used his vehicle as a dangerous weapon to assault, resist, oppose, and impede the officer.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Mission Man Pleads Guilty to Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that Vernon Robert Schmidt, Jr., a/k/a Sonny Bob Schmidt, age 29, of Mission, South Dakota, appeared before U.S. District Judge Roberto A. Lange on November 17, 2014, and pled guilty to Assault Resulting in Serious Bodily Injury.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund.
The charge stems from a May 26, 2014, incident in Mission, when Schmidt pointed a pistol at the victim during an argument. Schmidt was brandishing the weapon when it discharged and went off. A slug from the weapon hit the victim in the chest and neck area, causing the victim serious bodily injury.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case is being prosecuted by Assistant U.S. Attorney Tim Maher.
A presentence investigation was ordered, and a sentencing date was set for February 2, 2015.
Schmidt was remanded to the custody of the U.S. Marshals Service pending sentencing.
Minnesota Sex Offender Pleads Guilty to Traveling to Tampa to Engage in Sexual Activity with A MinorRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Matthew William McLean (25, Minneapolis) pleaded guilty yesterday to attempted transportation of a minor with the intent to engage in criminal sexual activity and committing a felony sex offense by a registered sex offender. He faces a mandatory minimum term of 20 years, up to a maximum penalty of life in federal prison. A sentencing date has not yet been set.
McLean was indicted on September 10, 2014.
According to the plea agreement, McLean, a registered sex offender from Minnesota, traveled to Tampa to meet a 14-year-old female with whom he was communicating over the Internet. McLean picked the minor up from her house, brought her to the Greyhound bus station, and purchased two bus tickets to Brownsville, Texas. Upon discovering that the minor was missing, her family contacted law enforcement who determined that McLean and the minor were on a Greyhound bus that had stopped in Tallahassee. Law enforcement officers recovered the minor victim and arrested McLean. McLean and the minor admitted that they had engaged in sex acts on the bus while traveling from Tampa to Tallahassee.
This case was investigated by the Hillsborough County Sheriff’s Office, the Tallahassee Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Stacie B. Harris.
It was another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
- Mexican National Gets Nine Years for Marijuana Conviction and Related Assault of Federal Officer
Meridian Woman Sentenced for Bank RobberyRead the Press Release
COEUR D'ALENE - Jennifer Lillian Balfe, 19, of Meridian, Idaho, was sentenced yesterday to 27 months in prison for bank robbery, U.S. Attorney Wendy J. Olson announced. Balfe was indicted by a federal grand jury in Coeur d'Alene on May 20, 2014.
U.S. District Judge Edward J. Lodge also ordered the defendant serve three years of supervised release and to pay restitution to the three banks she robbed with her accomplice, Ricky Allen Fisher. Balfe drove the get- away vehicle during a robbery of the U.S. Bank in Cottonwood, Idaho and two banks in Ontario, Oregon.
The case was investigated by the Cottonwood Police Department, Lewiston Police Department, Idaho County Sheriff’s Office, Nez Perce County Sheriff’s Office, and the Federal Bureau of Investigation (FBI).
Meriden Man Who Stole Social Security Disability Benefits, Filed False Tax Returns, Is SentencedRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH LUCA, 68, of Meriden, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to four years of probation, the first six months of which LUCA must spend in home confinement with electronic monitoring, for stealing Social Security benefits and filing false tax returns. LUCA also was ordered to perform 80 hours of community service.
According to court documents and statements made in court, in April 1993, LUCA applied for Social Security Disability Insurance (“SSDI”) claiming that he was disabled and unable to work. From January 2002 through April 2011, LUCA regularly reported to the Social Security Administration, under the penalty of perjury, that he remained unable to work and he reported no earned income. In fact, during this time, LUCA earned more than $1,000 per month from his work as a hairdresser at a beauty salon he owned and operated. LUCA was not entitled to SSDI payments during this entire period because his earnings exceeded the SSA monthly substantial gainful activity limit.
An undercover investigation revealed that LUCA typically opened his beauty salon in the morning from Tuesday to Saturday each week, cut and styled his clients’ hair throughout the day in exchange for payment, and then locked up the salon at night. Throughout the day, he stood while he worked without the assistance of a cane or similar device, and also carried and lifted items using his body and arms. During the investigation, LUCA told an undercover agent who was posing as a client that he had been styling hair for 45 years.
Based on LUCA’s false representations that he was disabled, unable to work, and reported no income, the Social Security Administration paid him, as well as his children as auxiliary beneficiaries, a total of $122,332 that he and his children were not entitled to receive.
In May 2011, the Social Security Administration terminated LUCA’s SSDI benefit payments.
LUCA also willfully signed and filed federal tax returns for the 2006 through 2009 tax years that failed to report a total of more $675,000 in additional taxable income. On each of these four tax returns, LUCA reported a loss and no tax due. The investigation determined that LUCA did not report his receipt of income from various sources, including rental real estate, work as a private investigator, interest on bank accounts, SSDI payments he was not entitled to receive, and capital gains on rental properties.
On his 2006 federal tax return alone, LUCA failed to report approximately $299,674 in additional income, with a tax due in the amount of $36,687.
Judge Shea ordered LUCA to pay $122,332 in restitution to the Social Security Administration, and $64,093 in back taxes, plus penalties and interest.
On July 11, 2014, LUCA waived his right to indictment and pleaded guilty to one count of stealing government money and one count of filing a false federal tax return.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division, and the Social Security Administration, Office of Inspector General – Office of Investigations. The case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Massachusetts Dentist Pleads Guilty to Tax EvasionRead the Press Release
A Douglas, Massachusetts, dentist pleaded guilty to tax evasion in the U.S. District Court for the District of Massachusetts, announced the Department of Justice.
George Fenzell was indicted in February 2014 by a federal grand jury in Boston on multiple counts of tax evasion and one count of corruptly endeavoring to obstruct the Internal Revenue Service (IRS). He pleaded Friday before U.S. District Judge Timothy S. Hillman and faces a statutory maximum sentence of five years in prison and a $250,000 fine for tax evasion at his Feb. 18 sentencing.
According to the indictment, from 1999 through 2012, Fenzell engaged in conduct intended to obstruct the IRS from computing, assessing and collecting his income taxes. He failed to file timely tax returns with the IRS and tried to conceal income he earned from his dental practice. Fenzell’s dental offices are located in Shrewsbury, Massachusetts, and Brookline, New Hampshire. The indictment alleges that Fenzell used nominee entities, including River Valley Dental and Brookline Dental Associates Trust, to divert and conceal his dental business receipts and assets. He also allegedly used multiple bank accounts in three separate states, including commingled bank accounts maintained by third parties, to conceal his ownership of his income and assets. It is further alleged that Fenzell used nominee trustees to make it appear as if other individuals owned and controlled his assets and income. Fenzell titled and registered a Lincoln Navigator and Ducati motorcycle with a nominee entity, Smiling Trust. According to the indictment, Fenzell falsified his 2006 and 2007 tax returns that were filed late in 2009, and made extensive use of cash in order to conceal his fraud from the IRS.
The indictment further alleges that in 2007, in response to a Massachusetts Department of Revenue investigation and collection action, Fenzell filed his delinquent federal tax returns for 2000 through 2005. In those returns, Fenzell admitted that he owed federal income taxes for these years in the amount of approximately $129,841, which he failed to pay. Rather than pay these taxes and additional IRS interest and penalties, between 2007 and 2012, Fenzell allegedly sought to evade IRS collection efforts by making his business receipts payable to nominee entities and used nominee bank accounts in Florida and Rhode Island to divert and hide his income and assets. During the same period, Fenzell also failed to file his tax returns for 2008 through 2011.
This case was investigated by special agents of the IRS-Criminal Investigation. It is being prosecuted by Assistant Chief John N. Kane Jr. and Trial Attorney Thomas Koelbl of the Justice Department’s Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.
Luzerne County Residents Arrested for Distribution of "Bath Salts", Alpha-PVPRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today the unsealing of an indictment of seven Luzerne County residents on charges relating to the unlawful distribution of bath salts.
According to United States Attorney Peter Smith, the following persons were taken into custody:
-
- David Folweiler, 27 of West Pittston
- Alan Folweiler, 21 of West Pittston
- John Pearce, 29 of West Pittston
- Frank Xavier Brennan, 33 of Kingston
- Maura Kathio, 25 of Yatesville
- Tiffany Pradel, 30 of Pittston Township
- Marguerita Ann Davis, 59 of Pittston
The defendants were indicted by a federal grand jury in Scranton in August 2014 for their alleged participation in a bath salts trafficking and distribution ring led by Todd Morgans. Morgans was arrested in July 2013, pled guilty and was sentenced to 135 months in federal prison in September 2014. The indictment was sealed pending the arrest of the defendants.
David Folweiler, Alan Folweiler, Mauro Kathio, and Margherita Davis were arrested on November 12, 2014, and subsequently appeared before Magistrate Judge Thomas M. Blewitt David Folweiler was ordered detained pending trial. The others were released on bail with conditions.
John Pearce and Tiffany Pradel were arrested on November 14, 2014. They appeared before Magistrate Judge Thomas M. Blewitt on November 17, 2014. Pearce and Pradel were ordered detained pending trial.
Frank Xavier Brennan surrendered to agents today and appeared before Magistrate Judge Thomas M. Blewitt. Brennan was released on bail pending trial.
The maximum sentence for the offense is imprisonment for 20 years, a fine of $1,000,000 and supervised release for a period of at least 3 years.
This case was the result of a joint investigation between the Department of Homeland Security (DHS), Homeland Security Investigations (HSI), the Pennsylvania State Police, The United States Postal Inspection Service and the West Pittston, Jenkins Township, and the Pittston City Police Departments.
Bath salts are synthetic drugs which are analogues of controlled substances prohibited under federal statutes. A controlled substance analogue is a drug which has not been scheduled under The Controlled Substances Act but has a similar chemical structure and a similar stimulant or hallucinogenic effect on a person’s central nervous system. Such controlled substance analogues are treated as if the substance were the scheduled drug for prosecution and sentencing purposes.
Prosecution is assigned to Assistant United States Attorney Francis P. Sempa.
-
Lower Brule Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on November 17, 2014, by U.S. District Judge Roberto A. Lange.
Daniel Berry, age 25, was sentenced to 22 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Berry also needs to register as a sex offender.
Berry was indicted by a federal grand jury on April 15, 2014. He pled guilty on September 11, 2014.
The conviction stems from an incident that happened between January 1, 2012, and January 31, 2012, when Berry, who was having a party at his house, had sexual intercourse with an underage female victim.
This case was investigated by the Bureau of Indian Affair, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Berry was immediately turned over to the custody of the U.S. Marshals Service.
Lower Brule Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Johnny Lunderman, age 31, was indicted on November 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 18, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, at least 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Lunderman was previously convicted of a sex offense that required him to register as a sex offender, and he signed paperwork acknowledging that requirement. The Indictment alleges that between October 7, 2014, and October 17, 2014, Lunderman moved and failed to change and update his sex offender registration as required by law.
The charge is merely an accusation and Lunderman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Lunderman was remanded to the custody of the U.S. Marshals Service pending trial. No trial date has been set.
Lower Brule Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assault by Strangulation and Suffocation, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Cameron LaRoche, age 37, was indicted on November 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 18, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about August 21, 2014, LaRoche unlawfully assaulted his intimate partner by strangling and suffocating her, as well as committed a domestic assault on her, which resulted in substantial bodily injury.
The charges are merely accusations and LaRoche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
LaRoche was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Letter Carrier Sentenced to 15 Years in Prison for Plotting Robbery of Fellow Postal WorkerRead the Press Release
ATLANTA - LaTonya Evans, a former United Stated Postal Service employee, has been sentenced to federal prison for participating in a conspiracy that culminated in the robbery and shooting of a postal truck driver on December 20, 2013, in Conley, Ga.
“By providing her co-defendants with inside information, Evans enabled a robbery that nearly killed her co-worker,” said United States Attorney Sally Quillian Yates. “Evans used her knowledge of the Postal Service for personal gain and violated the trust of the public and her fellow postal workers.”
“The safety and security of Postal Service employees is core to the mission of the Postal Inspection Service. Postal Inspectors are committed to bringing to justice those who commit violent crimes against postal employees.” said Thomas Noyes, Postal Inspector in Charge of the Charlotte Division.
According to United States Attorney Yates, the indictment, and other information presented in court: LaTonya Evans helped develop a scheme, with co-defendants Kendrick Watkins and Charles Jackson, to rob a postal truck driver. During phones calls and face-to-face meetings, Evans provided Watkins and Jackson with non-public information that enabled them to commit the robbery. On December 20, 2013, during a routine pick-up in Conley, Ga., Jackson and Watkins approached the postal truck they had targeted and demanded keys from the driver. When the victim did not immediately comply, Jackson shot the victim through the torso, nearly taking his life. The robbers bound the victim’s feet and took his cell phone so that he could not run or call for help. Jackson and Watkins drove away with the stolen truck, and all its contents, and met with Evans later that same evening to discuss the robbery. The victim struggled to reach the nearest road where he eventually flagged down a passerby for help, after waiting almost 45 minutes.
LaTonya Evans, 44, of Jackson, Ga., was sentenced by U.S. District Judge Thomas W. Thrash, Jr., to 15 years and eight months in prison, followed by three years of supervised release. Evans was convicted on September 9, 2014, after pleading guilty to conspiring to interfere with commerce by robbery.
Co-defendants Kendrick Watkins, 39, of Rex, Ga., and Charles Jackson, 55, of Griffin, Ga., were convicted on August 13, 2014, and August 5, 2014, respectively, after both men pleaded guilty to armed postal robbery and discharge of a firearm during a crime of violence. Watkins and Jackson will be sentenced on January 7, 2015. They both face a maximum sentence of life imprisonment.
This case was investigated by the United States Postal Inspection Service.
Assistant United States Attorneys Mary Kruger, John Ghose and Angela Garland prosecuted this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Lake Charles Mechanic Sentenced to 24 Months in Federal Prison on Obscenity ConvictionRead the Press Release
LUBBOCK, Texas — A former mechanic from Lake Charles, Louisiana, Nicholas W. Schofield, 26, was sentenced today by U.S. District Judge Sam R. Cummings to 24 months in federal prison, following his guilty plea in July 2014 to one count of attempted transfer of obscene material to a minor, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Judge Cummings ordered Schofield, who has been on bond, to surrender to the Bureau of Prisons on January 25, 2015.
According to documents filed in the case, in November 2013, a minor female, “Jane Doe,” from San Angelo, Texas, began texting with a person she did not know, who purported to be an 18-year-old mechanic from Louisiana named “Nick.” In fact, Nick was defendant Schofield. They engaged in numerous texting communications until February 2014, when Jane Doe’s communications were assumed by an undercover special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
In the course of his communications with the undercover agent, Schofield sent various sexually explicit images and videos, all the while believing he was communicating with 15-year-old Jane Doe. According to the factual resume filed, the video Schofield sent to the minor is obscene, in that it appeals to a prurient interest in sex, depicts a sexually explicit act and is patently offensive and, taken as a whole, lacks serious literary, artistic, political or scientific value.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
ICE HSI and the San Angelo Police Department, Special Operations Section, investigated. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Lafayette Man Sentenced to 200 Months in Prison for Possession of Cocaine with Intent to DistributeRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced that a Lafayette man was sentenced Thursday, to 200 months in prison and five years of supervised release for possession of cocaine.
Calvin James Catalon Jr., 35, of Lafayette, La., was sentenced Thursday by U.S. District Judge Patricia Minaldi on one count of possession of cocaine with intent to distribute. According to evidence presented at the May 22, 2014 guilty plea, a Lake Charles police officer stopped Catalon’s vehicle for a traffic violation on January 17, 2014 on I-10. After the officer conducted a search of the vehicle, the officer found a bag containing white powder which was tested at a DEA laboratory in Dallas and identified as cocaine. The net weight of the illegal substance was approximately 991.8 grams.
“Because of the work of an alert police officer, a large shipment of cocaine was taken off the streets,” Finley stated. “Our goal is to keep communities safe and free of these dangerous substances. We will continue to vigorously prosecute these cases.”
The FBI, DEA, Lake Charles Police Department, Calcasieu Parish Sheriff’s Office, and the Calcasieu Anti-Drug Team conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
Kootenai Tribal Member Sentenced for Unlawful Possession of A FirearmRead the Press Release
COEUR D'ALENE - William Gene Andrews, 54, of Bonners Ferry, Idaho, was sentenced yesterday in United States District Court to 21 months in prison followed by three years of supervised release, U.S. Attorney Wendy J. Olson announced. Andrews pleaded guilty to the charge on August 14, 2014.
According to court documents, William Gene Andrews admitted that he possessed a handgun after he had previously been convicted of a felony offense. The handgun was found in Andrews’ bedroom during the execution of a search warrant on June 9, 2014.
The case was investigated by Kootenai Tribal Police Officers and the Federal Bureau of Investigation (FBI).
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
Jamaican National Convicted Following Jury TrialRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5877
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal jury in Rochester has convicted Carl Spencer, 63, a Jamaican national, of illegal re-entry and aggravated identity theft. The convictions came after a three day jury trial.
The immigration charge carries a sentence of up to two years in prison. The aggravated identity theft charge carries a mandatory two year sentence which must be served consecutively to any sentence imposed for the immigration charge.
Assistant U.S. Attorney John J. Field, who handled the prosecution of the case, stated that Spencer was previously departed and removed in 2006. On November 9, 2012, the defendant was found by agents with Immigration and Customs Enforcement. When stopped by agents, Spencer presented a fake Georgia driver’s license in the name of Clyde Crenshaw, a United States citizen and resident of the NYC area.
The verdict is the culmination of an investigation on the part of Special Agents of the Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.
Sentencing is scheduled for January 20, 2015, at 11:00 a.m. before U.S. District Judge David G. Larimer, who presided over the trial of the case.
Jacksonville Man Sentenced to Ten Years in Federal Prison for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Daniel Robert Gardner (21, Jacksonville) to 10 years in federal prison for receiving child pornography over the Internet. The Court also ordered him to serve a 10-year term of supervision and to register as a sex offender upon his release from prison. Gardner pleaded guilty on July 28, 2014.
According to court documents, forensic analyses of Gardner’s computer yielded approximately 2,000 images and 56 videos depicting child pornography. Law enforcement officers also recovered evidence that Gardner had shared his collection of child pornography and had chatted about the images with others.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Jackson County Property Owner Pleads Guilty to Clean Water Act ViolationRead the Press Release
TOPEKA, KAN. – A man who owns property in Jackson County, Kan., pleaded guilty Friday to violating the federal Clean Water Act, U.S. Attorney Barry Grissom said.
Rodney Heinen, 38, Dawson, Neb., pleaded guilty to one count of discharging pollutants into a stream without a permit. In his plea, he admitted he caused earthen fill and wood debris to be placed in streams flowing through properties he owns in Jackson County.
A regulatory specialist with the Corps of Engineers discovered the violations on one of Heinen’s properties on Feb. 2, 2012. Heinen refused to allow the Corps of Engineers access to the property to make an environmental assessment. The violation affected several unnamed tributaries to Straight Creek, which drains into the Delaware River, which is classified as a Traditionally Navigable Water.
In 2013, the Corps of Engineers found a similar violation on another property in Jackson County owned by Heinen. The violation affected two unnamed tributaries to North Cedar Creek, which drains into the Delaware River.
Sentencing is set for Feb. 6. The government is recommending a sentence of five years supervised probation and a fine between $20,000 and $150,000. The Environmental Protection Agency investigated. Assistant U.S. Attorney Rich Hathaway is prosecuting.
Investment Advisor Pleads Guilty to Defrauding Client of More Than $800,000Read the Press Release
COEUR D'ALENE - JoAnn Jackson, 63, of Coeur d'Alene, Idaho, pleaded guilty yesterday to two counts of wire fraud for misappropriating more than $800,000 from a client’s account, U.S. Attorney Wendy J. Olson announced. Jackson, an investment advisor, was indicted by a federal grand Jury in Coeur d'Alene on August 19, 2014.
According to the plea agreement, Jackson admitted that in 1994, she became a licensed stock broker in Idaho. Early in her career, Jackson came into contact with the victim, who eventually put all of her investment accounts under Jackson’s care. Jackson developed a scheme to misappropriate the victim’s money by transferring the funds from the victim’s account into other accounts, eventually obtaining the benefit of the money. Jackson has agreed to make restitution in the amount of $811,084.32.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000.00 or twice the value of the money stolen, and up to three years of supervised release.
Sentencing is set for February 3, 2015, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by Federal Bureau of Investigation (FBI).
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Insurance Agency Owner Arrested, Charged with Defrauding Multiple Victims of $1.5 MillionRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that EARL O’GARRO, JR., 31, of Marlborough, was arrested today on an indictment alleging that he defrauded multiple victims of a total of approximately $1.5 million. Yesterday, a federal grand jury in New Haven returned the indictment, which charges O’GARRO with one count of wire fraud.
O’GARRO appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and entered a plea of not guilty. He was released on a $500,000 bond.
According to the indictment, O’GARRO was the President, Chief Executive Officer and an owner of Hartford-based Hybrid Insurance Agency, LLC, doing business as Hybrid Insurance Group (“Hybrid”), an insurance brokerage specializing in placing wholesale and specialty line insurance products. In January 2012, O’GARRO, on behalf of Hybrid, submitted an application to the State of Connecticut Department of Economic and Community Development (“DECD”) pursuant to the Small Business Express loan and grant program. The purpose of the application was to secure a Small Business Express loan in the amount of $100,000 and a Small Business Express grant in the amount of $26,320. It is alleged that O’GARRO provided false and misleading information concerning Hybrid’s financial condition on the application. In particular, O’GARRO falsely inflated the value of Hybrid’s cash assets in order to increase the likelihood that his application would be approved for the amount of funds he sought. Based in part on the false statements contained in O’GARRO’s application and a subsequent formal agreement, DECD approved Hybrid’s Small Business Express application and awarded Hybrid a Small Business Express loan in the amount of $100,000 and $26,320 matching grant.
The indictment further alleges that, in July 2013, O’GARRO sent a series of electronic communications to a company that administers the payment of premiums on behalf of insured entities (“Victim 1”). In the communications, O’GARRO falsely claimed that he was an officer and underwriter for an insurance company (“Insurance Company 1”) with authority to direct Victim 1 to release premium payments. Acting in his assumed capacity, O’GARRO directed Victim 1 to remit to Hybrid premium payments for policies associated with four corporate entities purportedly insured by Insurance Company 1. Three of the four companies, Blaque Rock Capital LLP d/b/a Us Restaurant, Marlbro’s Restaurant Group LLP d/b/a Us Restaurant, and Epplied Staffing Solutions LLC, were registered with the Connecticut Secretary of State and associated with O’GARRO. The fourth company, D&D Moving Company, was not registered with the Connecticut Secretary of State, but was utilized by O’GARRO as a repository for fraudulently obtained funds. In fact, Insurance Company 1 had not issued any policies for any of these entities. In response to the fraudulent communications created by O’GARRO, Victim 1 remitted approximately $691,266.75 to Hybrid, which O’GARRO then converted to his own use.
Hybrid was a wholesale broker for certain insurance policies held by the City of Hartford. The indictment further alleges that, in July 2013, O’GARRO directed the city to transfer $868,244 to Hybrid. Of that sum, $441,900 constituted a premium payment to an insurance company offering excess liability insurance policies and $228,097 constituted a premium payment to a second insurer. O’GARRO did not remit either of the premium payments, and instead converted the money to his own use. O’GARRO subsequently advised the city that the premium payments had been remitted to the insurers.
If convicted of wire fraud, O’GARRO faces a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
U.S. Attorney Daly stated that the investigation is ongoing.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Christopher M. Mattei.
The case has been assigned to U.S. District Judge Alvin W. Thompson in Hartford.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Indictment: Keebler Employees Filed False Reports to Receive Unemployment BenefitsRead the Press Release
KANSAS CITY, KAN. – Federal indictments were returned Thursday charging that eight people who worked for Keebler Company in Kansas City, Kan., fraudulently received unemployment benefits, U.S. Attorney Barry Grissom.
In September, similar indictments were filed against 16 people who worked for Keebler.
The new indictments allege that while working for Keebler each of the defendants received unemployment benefits by submitting false reports to the Kansas Department of Labor.
Defendants, who are charged in separate indictments with one count each of theft of government funds and one count of bank fraud, include the following:
Anthony Quiroga, Jr., 48, Shawnee, Kan., who is alleged to have fraudulently received $13,105.
Brian Parker, 51, Grandview, Mo., who is alleged to have fraudulently received $19,966.
Darren Coby, 52, Kansas City, Kan., who is alleged to have fraudulently received $10,824.
Darren Lewis, 46, Kansas City, Mo., who is alleged to have fraudulently received $11,100.
Jerry Jenkins, 51, Linwood, Kan., who is alleged to have fraudulently received $10,738.
Keith Holmes, 43, Kansas City, Mo., who is alleged to have fraudulently received $17,325.
Tammye Hill, 46, Kansas City, Mo., who is alleged to have fraudulently received $10,439.
Terry Richardson, 39, Kansas City, Mo., who is alleged to have received $10,682.If convicted, they face a maximum penalty of 10 years in federal prison and a fine up to $250,000 on the theft of government funds, and a maximum penalty of 30 years and a fine up to $1 million on the bank fraud charge. The Kansas Department of Labor and the U.S. Department of Labor - Office of Inspector General investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
OTHER INDICTMENTS
Enrique Torres-Sanchez, 36, who is not a citizen of the United States, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found Oct. 30, 2014, in Wyandotte County, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Trent Krug is prosecuting.
Sajjad S. Chaudhry, 46; Saima Sajjad, 38; and Brian D. Parker, 47, are charged in a superseding indictment with conspiracy to commit food stamp fraud, food stamp fraud counts and wire fraud counts. Chaudhry also is charged with aggravated identity theft counts. The crimes are alleged to have occurred from May 2011 to March 2014 at the KC Gas Mart, 2859 State Avenue, Kansas City, Kan. Chaudhry and his wife, Saima Sajjad, operated and managed the store.
The indictment alleges the defendants took part in fraudulent transactions in which employees of the store gave food stamp recipients cash instead of authorized food items at a rate of about 50 cents on the dollar.
Upon conviction, the crimes carry the following penalties: Conspiracy: A maximum penalty of five years and a fine up to $250,000.
Food stamp fraud: A maximum penalty of five years and a fine up to $250,000.
Wire fraud: A maximum penalty of 20 years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years consecutive to other imprisonment and a fine up to $250,000.The U.S. Department of Agriculture - Office of Inspector General investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Dan Kelly, 45, Wichita, Kan., is charged with two counts of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in September and November 2014 in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $4 million on one count, and a penalty of not less than 5 years and a fine up to $2 million on the other count. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Christopher S. Kemp, 31, is charged with escaping from a federal halfway house in Leavenworth, Kan., on Nov. 14, 2014.
If convicted, he faces a maximum penalty of 5 years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Hurst, Texas, Man Charged with Federal Child Pornography OffenseRead the Press Release
FORT WORTH, Texas — A Hurst, Texas, man is in federal custody, charged in a federal criminal complaint with transporting and shipping child pornography, announced U.S. Attorney Sarah R. Saldana.
Randy Way Wesson, 28, made his initial appearance before U.S. Magistrate Judge Jeffrey L. Cureton in federal court in Fort Worth today, and he was ordered detained, pending a detention and preliminary hearing set for Tuesday, November 25, 2014, at 11:00 a.m. before Judge Cureton.
According to the complaint filed in the matter, the investigation began when a detective with the Hurst Police Department received information form the Dallas Police Department’s Internet Crimes Against Children (ICAC) unit regarding a Cybertip received from the National Center for Missing and Exploited Children (NCMEC). That referral indicated that a particular Instagram member had uploaded an image of child pornography through their server on June 7, 2014. The investigation revealed that Wesson was the owner of that account.
Officers with the Hurst Police Department executed a state search warrant at Wesson’s home on November 18, 2014, in an effort to search for and seize evidence of child pornography. Wesson was present during the search. A preliminary examination of Wesson’s desktop computer revealed numerous images of child pornography.
Anyone who may have been victimized related to this case should contact the toll-free tip line to Homeland Security Investigations (HSI) at 1-866-347-2423.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The statutory penalty for the offense as charged is not less than five or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release.
The matter was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/. and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) HSI and the Hurst Police Department are investigating. Assistant U.S. Attorney A. Saleem is in charge of the prosecution.
- Houston Man Charged with Robbing BBVA Compass Bank at Galleria Mall
Honduran Man Sentenced in Federal Court for Illegal Reentry into United StatesRead the Press Release
Illegal Immigrant was Deported After Felony Drug Conviction
CHARLESTON, W. Va. - United States Attorney Booth Goodwin announced that Jorge Leonardo Reyes-Figueroa, 26, from Honduras was sentenced today in federal court in Charleston to two and a half years in prison for illegal reentry into the United States following deportation. He also faces administrative deportation after being released from prison.In 2010, Reyes-Figueroa, an illegal immigrant from Honduras, was convicted in Adams County, Colorado of a felony drug offense involving heroin distribution. Following the criminal conviction, Reyes-Figueroa was deported to Honduras. Sometime thereafter, Reyes-Figueroa illegally reentered the United States. In May of 2014, officers with the West Virginia State Police found Reyes-Figueroa living in Ripley, West Virginia.
The West Virginia State Police and the United States Department of Homeland Security conducted theinvestigation. Assistant United States Attorney Erik S. Goes is prosecuting the matter on behalf of the United States of America.
Hacker Sentened to Jail in Sandwich Shop SchemeRead the Press Release
BOSTON – A California man was sentenced today for remotely hacking into the computerized cash registers of a number of Subway restaurants and fraudulently obtaining more than $40,000 in gift cards.
Shahin Abdollahi, aka Sean Holdt, 46, of Lake Elsinore, Calif., was sentenced by U.S. District Judge Richard G. Stearns to serve 18 months in prison, two years of supervised release, and ordered to pay $43,712 in restitution to Subway. In May 2014, Abdollahi pleaded guilty to one count of conspiracy to commit computer intrusion and wire fraud and one count of wire fraud. Abdollahi’s co-conspirator, Jeffrey Wilkinson, 37, of Rialto, Calif., was sentenced to six months in prison in May 2014.
Abdollahi owned Subway franchises in Southern California from 2005 to 2008 and later operated a California company called POS Doctor, which sold and installed point-of-sale (POS) computer systems to Subway restaurant franchises around the country. POS systems are a type of computerized checkout register that allows merchants to manage customer purchases made by credit, debit and gift cards.
Beginning in 2011, Abdollahi and Wilkinson conspired to remotely hack into POS systems in Subway restaurant franchises around the country. Members of the conspiracy hacked into at least 13 Subway POS systems that Abdollahi sold through his company and fraudulently added at least $40,000 in value to Subway gift cards. Abdollahi and Wilkinson used the fraudulent gift cards to make purchases at Subway, and Wilkinson also sold fraudulent gift cards to others using eBay and Craigslist.
United States Attorney Carmen M. Ortiz of the District of Massachusetts, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Resident Agent in Charge Holly Fraumeni of the United States Secret Service in Manchester, New Hampshire, made the announcement. The case was prosecuted by Assistant U.S. Attorney Adam J. Bookbinder, the chief of Ortiz’s Cybercrime Unit and Senior Trial Attorney Mona Sedky, with the Department of Justice’s Computer Crime & Intellectual Property Section.
Greece Man Sentenced for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Gordon Link, 78, of Greece, NY, who was convicted of attempted possession of child pornography, was sentenced to 24 months in prison and 10 years supervised release by U.S. District Court Judge Elizabeth A. Wolford.Assistant U.S. Attorney Craig R. Gestring, who handled the case, stated that in October 2013, a Rochester mother texted a photograph of her 10 year old daughter to a friend via her cellular phone. The photograph depicted the young child, fully clothed, seated at a table with a doll at her birthday party. However, the woman mistakenly sent the child’s photograph to the wrong cell phone number, the number belonging to the defendant.
Link immediately sent several sexually suggestive texts back to the woman about the child’s image. The woman became concerned and contacted the police, who in turn, contacted the FBI Child Exploitation Task Force for assistance. A task force officer assigned to the unit assumed the child’s identity online, claiming to be 15 years old, and engaged in chats with the defendant. During several sessions, the defendant solicited the girl to send him sexually explicit photographs of her body. Link also engaged in sexually explicit chats with the girl and tried to meet her in person. Federal agents executed a search warrant at the defendant’s home and seized the cell phone Link used to communicate with the child.
At sentencing, Judge Wolford said that the defendant knew exactly what he was doing when he engaged in sexually explicit chats with the child. In concluding her remarks, Judge Wolford told the defendant “you are in fact a predator.” Link was immediately detained following sentencing and was remanded to the Custody of the United States Marshal’s Service.
The sentencing is the culmination of an investigation on the part of Officers of the Greece Police Department, under the direction of Chief Patrick Phelan; Officers of the Rochester Police Department, under the direction of Chief Michael Ciminelli; and Special Agents of the Federal Bureau of Investigation, Child Exploitation Task Force.
Government Intervenes in Lawsuit against Donald C. Proctor, Jr., M.D. Alleging Unnecessary Mohs Surgeries and Related ProceduresRead the Press Release
The United States has intervened in a whistleblower lawsuit against Donald C. Proctor, Jr., M.D., an otolaryngologist practicing in Vero Beach, Florida, and Grove Place Surgery Center, LLC, an ambulatory surgical center managed by Dr. Proctor, that is located in Vero Beach, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
According to the allegations made in the lawsuit:
Dr. Proctor billed Medicare for Mohs surgeries and related reconstructions that he either did not perform or were medically unnecessary. Dr. Proctor would routinely see patients who had been referred to him with a confirmed skin cancer lesion and inform them that they had additional lesions requiring Mohs surgery, even though the additional lesions had not been confirmed through a biopsy as cancerous or simply did not exist.
Mohs surgery is a specialized surgical procedure for removing certain types of skin cancers in specific areas of the body, including the face. The surgery is performed in stages in which the surgeon removes a single layer of tissue and then, after a microscopic evaluation of the excised tumor, performs additional stages, if necessary, until all of the cancer is removed. To increase his Medicare reimbursement, Dr. Proctor would perform three to four stages, or more, of Mohs surgery in the vast majority of surgeries he performed, even though that is far outside the norm and was often not necessary.
Additionally, it is alleged that Dr. Proctor defrauded Medicare by billing for unnecessary or nonexistent reconstructions, called adjacent tissue transfers, to close up surgical defects allegedly left by the Mohs surgeries.
Adjacent tissue transfers are complicated and often time-consuming procedures sometimes performed by physicians to close a defect resulting from the removal of a lesion on a patient’s skin. The lawsuit alleges that Dr. Proctor billed for these procedures in connection with virtually every Mohs surgery he claimed to have performed, even though in most cases they were not medically necessary or not performed at all.
“Physicians who perform unnecessary procedures, or bill for procedures they did not perform, put their own financial self-interest over their duty to their patients and raise the cost of health care for all of us, as patients and taxpayers,” said U.S. Attorney Ferrer. “We will not relent in our efforts to combat this type of fraud and abuse that plagues the Medicare program and threatens its financial stability.”
“Physicians who try to enrich themselves by performing medically unnecessary surgeries can cause their patients very serious health issues, waste millions in taxpayer dollars each year, and undercut the public’s trust in the medical profession,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “The Office of Inspector General will continue to protect beneficiaries and hold health care providers accountable for such outrageous behavior.”
The case is captioned United States ex rel. Becker & Wildes v. Donald C. Proctor, Jr., M.D. et al., No. 11-14214-Civ-Martinez (S.D. Fla.), and was filed by Ferdinand F. Becker, M.D., a facial plastic surgeon and former Mohs surgeon who referred patients to Dr. Proctor, and Linda Wildes, who was employed as Dr. Proctor’s histology technician for over eight years. They filed the case under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the federal government and receive a share of any recovery. The Act also authorizes the federal government to intervene in and assume primary responsibility for litigating a filed lawsuit, as the government has done in this case.
The claims asserted against Dr. Proctor and Grove Place Surgery Center are allegations only, and there has been no determination of liability.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Gitter Done Store Owners Sentenced to 9 Years and 7 Years in Prison for Selling Synthetic CannabinoidsRead the Press Release
TULSA, Okla. — Two convenience store owners were sentenced today for conspiring to distribute and distributing more than 127 kilograms of synthetic cannabinoids, which were marketed by names such as Diablo, Joker, Kush, and Scooby Snax, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
United States District Court Judge Claire V. Eagan sentenced Iqbal Makkar, 37, of Bentonville, Arkansas, to 97 months, and Gaurav Sehgal, 37, of Grove, Oklahoma, to 84 months in prison. Following a five day trial, a federal jury convicted the defendants of conspiracy to distribute controlled drug analogues, possession of Schedule 1 controlled substance analogue with intent to distribute, maintaining drug-involved premises, and money laundering. A federal grand jury charged the defendants on November 11, 2013.
From November 2011 to January 2013, Makkar and Sehgal operated the “Gitter Done Station” convenience store in Grove, Oklahoma, for the purpose of storing and distributing the controlled substance analogue known as XLR11. The charges included depositing funds from the illegal sales and distributions of controlled substance analogues into a checking account at the Corner Stone Bank in Southwest, Missouri.
XLR11 is a synthetic substance typically sprayed on inert plant material. XLR11 has similar or greater pharmacological effects as THC, a psychoactive ingredient in marijuana. Some side effects of XLR11 include paranoia, elevated heart rates, seizures, nausea, and panic attacks. The use of XLR11 and other synthetic cannabinoids has resulted in emergency room visits, impaired driving, and suicide attempts.
As part of the sentencing, U.S. District Court Judge Eagan entered an order forfeiting the interest of the defendants in two convenience stores valued at over $1,000,000, two residences and four other real properties valued at $1,754,535, proceeds of financial accounts and seized currency totaling over $721,000 and a Range Rover vehicle. Judge Eagan also entered a joint and several criminal forfeiture money judgment against defendants in the amount of $2,584,981.
In addition, the defendants were ordered to pay more than $6,000 in restitution to a victim who was hospitalized as a result of smoking synthetic cannabinoid bought at the convenience store.
The case was investigated by the Oklahoma District 13 Drug Task Force, Drug Enforcement Administration, and the Internal Revenue Service. Assistant U.S. Attorneys Clinton Johnson, Trent Shores, Shannon Cozzoni, and Catherine Depew prosecuted on behalf of the United States.
The Controlled Substances Act was amended in 1986 and provides for controlled substance analogues, to the extent that they are intended for human consumption, to be treated as Schedule I controlled substances for the purposes of criminal prosecution.
U.S. v. Makkar and Sehgal
Four Litchfield County Residents Charged and Arrested for String of Fraud SchemesRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and William P. Offord, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in New Haven returned a seven-count indictment yesterday charging RYAN GEDDES, 41, of Litchfield, JASON CALABRESE, 43, of Watertown, RICHARD GEDDES, 41, of Bethlehem, and DUSTIN WHITTEN, 31, of Thomaston, with multiple conspiracies involving bank fraud, mail and wire fraud, bankruptcy fraud and obstruction of justice. The charges stem from an alleged series of fraudulent real estate and insurance transactions, and an alleged arson of a vacation home.
The four defendants were arrested this morning. They appeared before U.S. Magistrate Judge Joan G. Margolis in New Haven and were released on bonds of varying amounts.
According to the indictment, by 2005, RYAN GEDDES had incurred several debts, including a business debt of more than $490,000 for which he was being sued. GEDDES and the other defendants then commenced a series of schemes to conceal GEDDES’s assets from creditors and to defraud various banks and insurance companies.
The indictment alleges that from 2005 through 2007, GEDDES, CALABRESE, and others prepared a series of three false mortgage loan and mortgage refinancing applications with respect to properties located at 27 Palmer Road in Morris and 669 Goshen Road in Torrington. The first transaction sought to conceal GEDDES’s ownership of the 27 Palmer Road property. The indictment further alleges that when GEDDES and others learned in 2010 of the federal investigation, they created a false, backdated document and gave it to the investigating agents in an effort to portray the first 27 Palmer Road mortgage transaction as legitimate. The indictment charges GEDDES and CALABRESE with one count of conspiracy to commit bank fraud, and GEDDES with one count of conspiracy to obstruct justice related to this scheme.
The indictment also alleges that GEDDES and others conducted a straw sale of another GEDDES property in 2010 from which they obtained title insurance after conducting a fraudulent title search. Because the search deliberately omitted to list almost a million dollars of liens against the property, the conspirators intended to plan an event that would trigger a new title search, resulting in discovery of the omitted liens, the filing of a title insurance claim, and a nearly million dollar insurance payout to the straw owner for the fraudulently omitted liens. For this scheme, GEDDES is charged with one count of conspiracy to commit mail and wire fraud.
The indictment further alleges that RYAN GEDDES and his brother, RICHARD GEDDES, conspired to commit bankruptcy fraud in 2010, based on the paper transfer of a home owned by RYAN GEDDES to RICHARD GEDDES, soon followed by RYAN GEDDES’s filing a bankruptcy petition in which he claimed not to own any real property. RYAN GEDDES also is charged with bankruptcy false statements for those acts.
Finally, RYAN GEDDES and WHITTEN are charged with conspiracy to commit mail and wire fraud, based on the paper transfer to WHITTEN of a New York vacation home property owned by GEDDES, the procurement of an insurance policy on the home in WHITTEN’s name, and the alleged arson of the home, followed by WHITTEN’s filing an insurance claim of more than $600,000 on the destroyed home.
If convicted, RYAN GEDDES faces a maximum term of imprisonment of 90 years, CALABRESE faces a maximum term of imprisonment of 30 years, RICHARD GEDDES faces a maximum term of imprisonment of five years, and WHITTEN faces a maximum term of imprisonment of 20 years.
U.S. Attorney Daly stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys Henry Kopel and Michael Gustafson.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Four in Metroplex Indicted for Stealing Social Security Benefits Belonging to Deceased IndividualsRead the Press Release
DALLAS — A federal grand jury returned four unrelated indictments this week, each charging an individual from the Dallas-Fort Worth metroplex with a federal felony offense stemming from their theft of Social Security benefits, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Each of the below-listed defendants is charged with at least one count of theft of government funds. Each was arrested, appeared before a U.S. Magistrate Judge, and was released on bond.
Robert Scoggins, 57, of Carrollton, Texas, is alleged to have stolen approximately $47,548 in Social Security benefits paid to his deceased wife, to which he knew he was not entitled.
James Glen Williams, 47, of Dallas, Texas, is alleged to have stolen approximately $77,886 in Retirement Insurance benefits paid to his deceased mother, to which he knew he was not entitled.
Latasha Smith, a/k/a Latasha Matthews, 34, of Arlington, Texas, is alleged to have stolen approximately $49,065 in Retirement Insurance benefits paid to her deceased father and $84,029 in Veterans’ Affairs benefits paid to her deceased mother, to which she knew she was not entitled.
Roy Dan Ramos, 41, of Grand Prairie, Texas, is alleged to have stolen more than $1,000 in Retirement Insurance benefits paid to his deceased grandmother, to which he knew he was not entitled. He is also charged with concealing that information in a 2011 bankruptcy filing.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty for the offense of theft of government funds is 10 years in federal prison and a $250,000 fine. The maximum statutory penalty for making a false statement in a bankruptcy filing is five years in federal prison and a $250,000 fine.
The investigation is being conducted by the Social Security Administration’s Office of the Inspector General, with assistance from the Department of Veterans’ Affairs Office of Inspector General. Special Assistant U.S. Attorney Nicole Dana is prosecuting.