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Wednesday 8 October 2014
Former Recruiter Sentenced for Stealing from National GuardRead the Press Release
CHARLESTON, W.Va. – Richard Lilly, 47, of Cross Lanes, West Virginia was sentenced in federal court in Charleston today to five years of probation and ordered to pay $13,500 in restitution for stealing from the West Virginia National Guard, announced United States Attorney Booth Goodwin. Lilly had previously plead guilty on May 20, 2014, to theft of government funds.
Lilly, who had served as a recruiter for the Guard since 2006, stole recruiting bonuses intended to reward Guard members for referring others who enlisted. Between June of 2008 and May of 2010, Lilly stole $13,500 dollars in bonus payments intended for others. Lilly is no longer a member of the Guard.
The investigation was conducted by the Federal Bureau of Investigation, assisted by investigators with the West Virginia National Guard. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.
Former Postal Service Employee Indicted for Scheme to Defraud the Workers Compensation ProgramRead the Press Release
Greenbelt, Maryland - A federal grand jury has indicted Larosa Bolton, age 53, of Laurel, Maryland, today on charges of theft of government property and making false claims in connecting with fraudulent claims for medical travel expenses.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General; and Special Agent in Charge Bill Jones, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
According to the indictment, Bolton was employed by the U.S. Postal Service as a city carrier at the Laurel post office. Between 1993 and 1998, she sustained three separate injuries, all of which qualified her to receive workers compensation benefits. As part of the program, beneficiaries, such as Bolton, are entitled to reimbursement for travel expenses to and from medical appointments related to the relevant injury, even if the employee returns to work. Bolton began receiving workers compensation benefits in 2001.
The two-count indictment alleges that between January 2008 and July 2014, Bolton received compensation for travel expenses for medical care relating to one of Bolton’s injury claims. Specifically, Bolton submitted vouchers for travel expenses for 1,170 trips for medical care. The indictment alleges that 89 of those trips were for medical care, but no medical care occurred for the remaining 1,081 trips that Bolton claimed. As a result of the fraudulent vouchers submitted by Bolton, the indictment alleges that she was paid at least $96,563.26 in reimbursement for travel to which she was not entitled and the indictment seeks forfeiture in that amount.
Bolton faces a maximum sentence of 10 years in prison for theft of government property and for making a false statement. No court appearance has been scheduled for Bolton.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the Department of Labor- Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the U.S. Postal Service Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Hollis Raphael Weisman, who is prosecuting the case.
Former Charter School Principal Pleads Guilty in Connection to MCAS CheatingRead the Press Release
BOSTON – A former Springfield charter school principal pleaded guilty today in U.S. District Court to a federal felony in connection with assisting students to cheat on the MCAS.
Janet Henry, 42, pleaded guilty to an Information charging her with committing mail fraud. U.S. District Judge Mark G. Mastroianni scheduled sentencing for Jan. 8, 2015.
According to the Information, in 2009 Henry became Principal of the Robert M. Hughes Academy Charter School in Springfield. In March and April 2009, the Massachusetts Comprehensive Assessment System (MCAS) tests were administered to the student body during which time Henry instructed teachers to give clues and other tips to students. For example, if teachers saw students entering nonsense answers, then they were to tell students to review their answers again. During preparation meetings, Henry stated to teachers that “this is where we earn our money,” and warned that the school could close or everyone would lose their jobs, if the test scores were not satisfactory. According to the statement of fact filed in the case, Henry was acting under the pressure form a member of the charter school’s board of directors.On April 16, 2009, upon the completion of the MCAS examinations, Henry falsely certified that the tests had been administered honestly.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz, Brian M. Hickey, Special Agent in Charge of the U.S. Department of Education, Office of Inspector General, Northeast Region, and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant United States Attorney Kevin O'Regan of Ortiz’s Springfield Office.
Former Booster Club President Guilty of Wire FraudRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 53-year-old Beaumont man has pleaded guilty to wire fraud charges in the Eastern District of Texas, announced U.S. attorney John M. Bales.
William Elzy Kelley, Jr., also known as Bo Kelley, pleaded guilty to an Information charging him with wire fraud today before U.S. District Judge Marcia Crone.
According to information presented in court, Kelley was president of the West Brook High School Football Booster Club from 2012 to February 2014. During which time Kelley had access to the Booster Club’s funds, which were kept in separate checking and savings accounts. From Sep. 2013 through Feb. 2014, Kelley withdrew funds from these accounts to pay personal expenses, including, but not limited to rent payments at Stoneleigh Apartments, college tuition, and other household bills. Kelley carried out the scheme by withdrawing cash and depositing it into his personal bank account and by using the debit card and writing checks on the account for his personal use. Kelley is specifically charged with using the Booster Club debit card to make a payment to Stoneleigh Apartments in the amount of $922.42 on Dec. 3, 2013.
Kelley faces up to 20 years in federal prison. A sentencing date has not been set.
This case was prosecuted as part of the Joint Task Force established in March 2014 between the U.S. Attorney’s Office for the Eastern District of Texas and the Jefferson County District Attorney’s Office to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust in Jefferson County, Texas.
“We have all been terribly disappointed with instance after instance of graft, abuse of authority and now, in Mr. Kelly’s instance, just plain theft,” said U.S. Attorney Bales. “This defendant masqueraded as a volunteer who only had West Brook’s best interests at heart – instead, he looted the booster club and so now he will join the growing parade of those who will be held accountable for violating our trust.”
"Today's guilty plea is a prime example that our investigations are not limited to only public entities, but actually encompass a broad range of fraud involving related organizations and associations,” said Jefferson County District Attorney Cory Crenshaw.
If you have any information related to this or any other matter related to fraud, please call the Federal Bureau of Investigation at 409-832-8571.This case is being investigated by the Federal Bureau of Investigation, the Beaumont Police Department, and the Jefferson County District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorneys Joseph R. Batte and Christopher T. Tortorice.
Five Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering ConspiracyRead the Press Release
Five Aryan Brotherhood of Texas (ABT) gang members from Dallas were sentenced to prison this week for their roles in the violent ABT enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Today, James Lawrence Burns, 44, and Kenneth Hancock, 34, high-ranking members in the ABT’s hierarchical structure, were ordered to serve respective terms of 20 and 15 years in federal prison by U.S. District Judge Sim Lake in the Southern District of Texas. Yesterday, Dustin Harris, 30, and Christopher Morris, 39, were each ordered to serve 10 years in prison, while Clay Kirkland, 35, received a sentence of more than 11 years in prison. An additional defendant – Bill Frank Weatherred, 29 – will be sentenced tomorrow.
According to information presented in court, the six men were admitted members of ABT, a powerful race-based, statewide organization that operates inside and outside of state federal prisons throughout Texas and the United States. Along with other ABT gang members and associates, they agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.
The ABT was established in the early 1980s within the Texas prison system. The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism, but over time, the ABT has expanded its criminal enterprise to include illegal activities for profit, according to court records.
Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”
In order to be considered for ABT membership, a person must be sponsored by another gang member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
The defendants sentenced this week are six of 36 defendants convicted of conducting racketeering activity through the ABT criminal enterprise, among other charges.
This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ed Gallagher and Tim Braley of the Southern District of Texas.
- Five Sentenced for Involvement in Aryan Brotherhood of Texas Racketeering Conspiracy
- Five Men Charged in Large-Scale Cocaine and Money Laundering Conspiracy
Federal Inmate Sentenced to Life in Prison for Murdering Another InmateRead the Press Release
Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was sentenced today to life in prison for the murder of another inmate.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney William J. Ihlenfeld II, for the Northern District of West Virginia made the announcement after sentencing by U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.
Bellinger was convicted by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.
According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack. In less than a minute, an officer approached, and the attackers fled. Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon. Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them.
At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Andrew Cogar and former Assistant U.S. Attorney Brandon Flower of the Northern District of West Virginia.
Federal Inmate Sentenced to Life in Prison for Murdering Another InmateRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was sentenced today to life in prison for the murder of another inmate.
U.S. Attorney William J. Ihlenfeld, II, for the Northern District of West Virginia and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement after sentencing by U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.
Bellinger was convicted by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.
According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack. In less than a minute, an officer approached, and the attackers fled. Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon. Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them.
At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000.
This case was investigated by the FBI and the U.S. Bureau of Prisons. The case was prosecuted by Assistant U.S. Attorney Andrew Cogar and former Assistant U.S. Attorney Brandon Flower of the Northern District of West Virginia and Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following:
Unregistered Sex Offender Indicted
Shana Marie Lawson, age 36, of Lancaster, South
Carolina, was charged in a 1-count Indictment with failure to register as a sex offender, a violation
of Title 18, United States Code, Section 2250(a). The maximum penalty Lawson could receive is
10 years imprisonment. The case was investigated by agents of the United States Marshals
Service and is assigned to Assistant United States Attorney William E. Day, II of the Columbia
office for prosecution.
Columbia Man Indicted For Defrauding The Department Of Veterans Affairs
Bobby Joe Haynes, age 60, of Columbia, South Carolina, was charged in a 1-count Indictment with converting over $1,000.00 belonging to the United States Department of Veterans Affairs from March 2011 to October 2013, a violation of Title 18, United States Code, Section 641. The maximum penalty Bobby Joe Haynes could receive is 10 years imprisonment. The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General and is assigned to Assistant United States Attorney William E. Day, II, of the Columbia office for prosecution.
Fort Lawn Man Indicted for Defrauding the Social Security Administration
Gerald W. Costner, age 70, of Fort Lawn, South Carolina, was charged in a 1-count Indictment with converting over $1,000.00 belonging to the Social Security Administration from June 1992 to January 2014, a violation of Title 18, United States Code, Section 641. The maximum penalty Gerald W. Costner could receive is 10 years imprisonment. The case was investigated by agents of the United States Office of Inspector General, Social Security Administration and is assigned to Assistant United States Attorney William E. Day, II, of the Columbia office for prosecution. The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Federal Grand Jury Hands Down Superseding Indictment Against Stephen M. Howells Ii and Nicole F. VaiseyRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian announced that a federal grand jury in Syracuse has handed down a 21 count superseding indictment against defendants STEPHEN M. HOWELLS II and NICOLE F. VAISEY. The superseding indictment, filed today, accuses HOWELLS with child exploitation offenses in all 21 counts, and charges VAISEY together with HOWELLS in 10 of the counts.
The superseding indictment specifies six different victims of the charged offenses.
HOWELLS, age 39, and VAISEY, age 25, both of Hermon, NY, are charged with one count (Count 1) of conspiracy to sexually exploit children between September 2013 and August 2014. They are also charged together with nine substantive counts (Counts 2 – 10) of exploiting three of the children during that time period. The nine counts represent nine separate dates on which the exploitation occurred.
In addition, HOWELLS is charged alone in six additional substantive counts (Counts 11 – 16), representing six additional dates, for the exploitation of four children.
The final five counts (Counts 17 – 21) of the superseding indictment charge HOWELLS with the possession of child pornography on each of five separate hard drives recovered from his residence. It is alleged that the images and video files possessed on these drives involve images of prepubescent minors and minors under the age of 12. The images and videos charged in these counts are separate and apart from those charged in the first 16 counts of the superseding indictment.*
HOWELLS and VAISEY face imprisonment of at least 15 years imprisonment, and up to 30 years on the conspiracy charge, and on each of the substantive exploitation counts. HOWELLS also faces a maximum sentence of 20 years on each of the possession counts. Conviction on any count requires a term of supervised release of a minimum of 5 years and up to life to follow any term of incarceration. In addition, conviction on any count of the superseding indictment will require HOWELLS and VAISEY to register as sex offenders.
United States Attorney Richard S. Hartunian said, “Sexual exploitation of minors is the most depraved, predatory abuse of our children. We will continue our efforts to make certain that every offense these defendants have committed is prosecuted to the fullest extent of the law. Our goal is that they will never be near children again.” Special Agent in Charge, Andrew W. Vale of the Federal Bureau of Investigation, Albany Division, stated, “This case epitomizes law enforcement's ability to keep our children safe when federal, state, and local agencies work together. The FBI will continue to work with our law-enforcement partners to identify any additional crimes committed by these defendants.”
St. Lawrence County Sheriff Kevin Wells stated, “As the lead County law enforcement agency in this case, we appreciate the teamwork in discovering and identifying these additional victims. The interagency cooperation in this investigation has been invaluable. We will continue our efforts and work with our law enforcement partners to ensure that these defendants are brought to justice for any crimes they have committed.”
St. Lawrence County District Attorney Mary E. Rain stated, “The St. Lawrence County District Attorney’s Office is pleased our Federal partners in prosecution are vigilantly pursuing charges which provide greater penalties than those New York law affords. From the beginning of this case, our Federal partners have bestowed upon our community their expertise, experience, and vast resources for which we are much appreciative. “
This case is being investigated by the St. Lawrence County Sheriff’s Office, the Federal Bureau of Investigation, Albany Division, and the St. Lawrence County District Attorney’s Office, with substantial assistance from the New York State Police.
The case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.projectsafechildhood.gov.
*The charges are merely allegations; the defendants are presumed innocent until and unless proven guilty.
Essex County, N.J., Man Sentenced to Nearly 19 Years in Prison for 17 Armed Robberies, Armed Carjacking, and ShootingRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today To 225 months in prison for committing 17 armed robberies of commercial establishments throughout Union, Essex and Bergen counties, all within a six-month period, U.S. Attorney Paul J. Fishman announced.
Bobby Dawson, 31, previously pleaded guilty before U.S. District Judge William H. Walls to an information charging him with one count of committing an armed carjacking, one count of conspiring to commit Hobbs Act robberies and one count of discharging a firearm during the commission of one of those robberies. Judge Walls imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Dawson conspired with others to rob commercial establishments as follows:
Pao Da Terra
Newark
Dec. 29, 2012
Newark
Jan. 20, 2013
Newark Community Pharmacy
Newark
Jan. 24, 2013
Linden Stationary
Linden
Feb. 1, 2013
Delta Gas Station
Newark
Feb. 1, 2013
Shoppers Express
Belleville
Feb. 2, 2013
Krauszers
Kearny
Feb. 10, 2013
Krauszers
Bloomfield
Feb. 13, 2013
Pat’s Deli
Newark
Feb. 19, 2013
Smashburger
Paramus
March 16, 2013
Krauszers
Bloomfield
March 29, 2013
MS&K Confectionery
Maplewood
April 1, 2013
Belleville News and Food
Belleville
April 17, 2013
South Wood Discount Liquor
Linden
April 17, 2013
Krauszers
West Orange
April 24, 2013
Newark Community Pharmacy
Newark
May 1, 2013
Subway Restaurant
Verona
May 20, 2013
Dawson and his conspirators robbed each of these establishments at gunpoint, stealing cash, cigarettes and other items. In 15 of the 17 robberies, Dawson and his conspirators used zip-ties or duct tape to restrain their victims.
In the MS&K robbery on April 1, 2013, Dawson threatened the clerk of the store with a .380 caliber semi-automatic handgun. When the clerk resisted, Dawson fired his gun at the clerk, ordered the clerk to lie down and then stole $9,000 from the cash register.
In the robbery of Krauszers in West Orange on April 24, 2013, Dawson and a conspirator tied up three individuals in the store with zip-ties before stealing approximately $600 and several cartons of cigarettes. Dawson injured a store employee by hitting the victim in the head with his firearm.
On Jan. 1, 2013, Dawson and others agreed to steal a Mitsubishi Gallant parked on Underwood Street in Newark. Before driving away with the car, Dawson and his conspirators brandished multiple firearms to subdue the driver, with one conspirator using his firearm to strike the driver in the head.
In addition to the prison term, Judge Walls sentenced Dawson to serve three years of supervised release and ordered him to pay $72,518 in restitution.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange police departments, along with the New Jersey State Police and the Essex County Prosecutor’s Office, for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
14-365
Defense counsel: Assistant Federal Public Defender Candace Hom Esq., Newark
Ephren Taylor, II, Pleads Guilty to Conspiracy to Commit FraudRead the Press Release
ATLANTA - Ephren Taylor, II, has pleaded guilty to conspiracy to commit mail and wire fraud by defrauding hundreds of victims of their retirement savings.
“Taylor’s guilty plea brings a measure of justice for the hundreds of his victims, including those hard-working Georgians who lost their life savings to his criminal scheme,” said United States Attorney Sally Quillian Yates.
“Mr. Taylor exploited numerous investors by perpetrating a scheme that was based entirely on lies,” stated Special Agent in Charge Veronica Hyman-Pillot, IRS Criminal Investigation. “Mr. Taylor’s guilty plea today is an opportunity for him to admit to the deception and face the consequences of his actions.”
“The United States Secret Service is aggressive in our investigative mission to arrest those who commit financial crimes. In this case, we were particularly resolved to bring to justice a criminal who chose to take advantage of unsuspecting members of the public in environments of reverence and trust,” said Reginald G. Moore, Special Agent in Charge of the United States Secret Service, Atlanta Field Office.
According to United States Attorney Yates, the charges and other information presented in court: From at least April 2009 through October 2010, Ephren Taylor, II, then CEO of City Capital Corporation, and his co-defendant Wendy Connor, the former COO of City Capital Corporation, participated in a conspiracy to defraud investors. In pleading guilty, Taylor acknowledged that he defrauded hundreds of investors of more than $7 million nationwide. In a separate hearing, co-defendant Wendy Connor also pleaded guilty to interstate transportation of money taken by fraud.
As part of the scheme, Taylor traveled around the country on a “Building Wealth Tour,” where he gave wealth management seminars to church congregations. During this tour, Taylor claimed to be a socially conscious investor and falsely claimed that 20% of profits were donated to charity. One of the churches on the “Building Wealth Tour” was the New Birth Missionary Baptist Church in Lithonia, Ga. While there, Taylor and Connor met potential investors to discuss possible investments. Over 80 individuals from Georgia lost more than $2 million because of Taylor’s scheme.
The investments pushed by Taylor included investing in promissory notes, where the funds invested would be used to support small businesses, such as laundries, juice bars, and gas stations. Taylor falsely represented the revenues and returns for these businesses knowing that they were not profitable.
Taylor also pushed an investment in sweepstakes machines. Sweepstakes machines are computers loaded with various games that allow players to win cash prizes. Taylor published offering materials that falsely claimed the average sweepstakes machine would generate 300% investor returns. He also stated that the sweepstakes machine investments were 100% risk free.
Taylor knew that the investments he was touting were not profitable and that investors were not receiving actual returns from their investments.The sentencing for Ephren Taylor, 32, of Overland Park, Kan., is scheduled for December 18, 2014, at 2:30 p.m. Wendy Connor, 45, of Raleigh, N.C., is scheduled to be sentenced on December 18, 2014, at 9:30 a.m.
This case is being investigated by the Internal Revenue Service Criminal Investigation and the United States Secret Service.
Assistant United States Attorney Christopher J. Huber is prosecuting the 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/.
District Man Pleads Guilty to Charges in Shooting That Seriously Wounded 8-Year-Old GirlGunfire Followed Attempted Robbery in Middle of Afternoon at Southeast Washington Apartment BuildingRead the Press Release
WASHINGTON – Karie Brown, 20, of Washington, D.C., pled guilty today to charges stemming from a shooting this year at an apartment building in Southeast Washington that seriously wounded an eight-year-old girl, U.S. Attorney Ronald C. Machen Jr. announced.
Brown pled guilty in the Superior Court of the District of Columbia to charges of aggravated assault while armed; assault with intent to rob while armed, and unlawful possession of a firearm by a convicted felon. The plea, which is contingent upon the Court’s approval, calls for a sentence of 14 ½ to 21 ½ years in prison. The Honorable Rhonda Reid Winston scheduled sentencing for Dec. 18, 2014.
A co-defendant, Nathaniel Patten, 21, also of Washington, D.C., is awaiting trial. He has pled not guilty to charges.
According to the government’s evidence, Brown and Patten decided on the afternoon of Feb. 14, 2014 to rob an individual they believed sold marijuana. Brown and Patten were armed with a .22-caliber Ruger semi-automatic pistol, which Brown was carrying. The men headed to the 1200 block of Valley Avenue SE, an area they knew that the individual had frequented.
Brown and Patten pretended to be waiting to gain access to a locked apartment building on the block. The eight-year-old girl – who was going outside to play in the snow -- held the door open for them. Brown and Patten then followed the individual who they were targeting into the building as he went upstairs. They then attempted to rob him and gain access to an apartment that he was about to enter. The individual escaped and ran downstairs. Brown shot once at the individual while inside the building and then fired multiple shots at him outside.
The shots missed the individual, but hit the girl in the torso.
The bullet that hit the child caused severe bleeding, and she was rushed to an emergency room and placed in critical care. She required immediate surgery and could have died but for the timely intervention of medical assistance.
According to the government’s evidence, Brown and Patten fled together, and Brown discarded the firearm, which was found by the Metropolitan Police Department (MPD). The defendants were both found and arrested soon after the shooting in the 3500 block of Wheeler Road SE.
The firearms charge stemmed from the fact that Brown had previously been convicted of a charge of conspiracy to commit robbery, in an unrelated case.
In announcing the plea, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Theresa Nelson, Victim/Witness Advocate Jennifer Clark, and Victim/Witness Security Specialist Tanya Via. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Tejpal S. Chawla and Kendra Briggs, who investigated and prosecuted the case.
14-226Defendant Sentenced to Nearly Six Years in Prison for Leading Multi-year Tax Fraud SchemeRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of YOSSIMAR ALARCON-PATINO, 25, to 70 months in prison for directing a conspiracy to obtain tax refunds by filing false income tax returns. He was also ordered to pay more than $1.7 million in restitution to the Internal Revenue Service. ALARCON-PATINO pleaded guilty on August 23, 2013, to Conspiracy to Defraud the United States and Money Laundering Conspiracy. Three other defendants pleaded guilty to conspiracy to defraud the United States or related charges as a result of this investigation. MARIA TERESITA ALVAREZ-MATEOS pleaded guilty on September 25, 2013, to one count of Conspiracy to Defraud the United States; SETH MOGOLLON-FLORES pleaded guilty on December 5, 2013, to one count of Conspiracy to Defraud the United States; and YULIANA ALVAREZ-MATEOS pleaded guilty on January 2, 2014, to one count of Making a Materially False Statement to Federal Agents.
According to his guilty plea and documents filed in court, since at least 2010, ALARCON- PATINO engaged in a tax fraud scheme through which he obtained tax refunds by filing false income tax returns that reported false income and claimed fictitious dependents. The majority of the false returns filed by ALARCON-PATINO were for undocumented workers or fictitious individuals. The Internal Revenue Service (IRS) requires people without Social Security numbers to obtain an Individual Taxpayer Identification Number (ITIN) in order to file tax returns and W-2 forms. ALARCON-PATINO obtained fake identification documents that he used to obtain false ITINs. MOGOLLON-FLORES also provided legitimate W-2 wage information to ALARCON-PATINO, which ALARCON-PATINO would augment and file with the tax returns. ALARCON-PATINO paid MOGOLLON-FLORES $100 for each W-2 he provided.
According to his guilty plea and documents filed in court, ALARCON-PATINO also falsely reported dependents in order to claim child tax credits and thereby generate a higher refund payment. He had the refund checks mailed to his residence in Minneapolis, and the residences of other defendants in Minnesota, who cashed the checks for him in exchange for a percentage of each check cashed.
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division, Federal Bureau of Investigation, U.S. Postal Inspection Service, and U.S. Department of the Treasury – Office of the Inspector General.
Assistant U.S. Attorney William Otteson prosecuted this case.
Defendant Information:
YOSSIMAR ALARCON-PATINO, 25
Minneapolis, Minn.
Convicted:
• Conspiracy to Defraud the United States, 1 count
• Money Laundering Conspiracy, 1 count
Sentenced:
• 70 months in prison
• Restitution ordered in the amount of $1.7 million
MARIA TERESITA ALVAREZ-MATEOS, 41
Bloomington, Minn.
Convicted:
• Conspiracy to Defraud the United States, 1 count
Sentenced:
• 24 months in prison
SETH MOGOLLON-FLORES, 29
Willmar, Minn.
Convicted:
• Conspiracy to Defraud the United States, 1 count
Sentenced:
• 18 months in prison
YULIANA ALVAREZ-MATEOS, 30
Minneapolis, Minn.
Convicted:
• Making a Materially False Statement to Federal Agents, 1 count
Sentenced:
• 2 years probation###
Copperas Cove Man Sentenced to 30 Years in Federal Prison for Production and Distribution of Child PornographyRead the Press Release
In Waco today, U.S. District Judge Walter S. Smith, Jr. sentenced 32-year-old Daniel Ethan Clark to 30 years in federal prison followed by ten years of supervised release on child pornography charges announced United States Attorney Robert Pitman and FBI Special Agent in Charge Christopher H. Combs.
On July 3, 2014, Clark pleaded guilty to one count of production of child pornography and one count of distribution of child pornography. According to court records, in April 2014, the defendant, seeking images of child pornography in return, sent an email which contained child pornography images to an undercover officer.
On April 1, 2014, FBI agents executed a search warrant at the defendant’s Copperas Cove residence and seized a cell phone belonging to the defendant. A subsequent forensics examination of the cell phone revealed the presence of approximately 7,000 images and videos depicting child pornography. By pleading guilty, Clark admitted to producing and distributing numerous images and videos of minor females, namely a 7-year-old and 13-year-old, engaged in sexually explicit conduct.
Clark’s wife, Michelle, is charged by federal indictment with one count of sexual exploitation of children for allegedly knowing about, and even participating in, her husband’s actions. Upon conviction, Michelle Clark faces between 15 and 30 years in federal prison. Michelle Clark remains in federal custody pending trial. She is currently set for jury selection on November 3, 2014.
This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Greg Gloff is prosecuting this case on behalf of the Government.
Comal County Woman Sentenced for East Texas Tax ViolationsRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas - A 61-year-old Spring Branch, Texas woman has been sentenced to federal prison for income tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Shirley Jean Emert pleaded guilty on Feb. 6, 2014 to making and subscribing to a false tax return for the calendar year 2010 and was sentenced to 24 months in federal prison today by U.S. District Judge Richard Schell.
According to information presented in court, Emert embezzled funds from her employer, Applied Concepts, in the amounts of $53,859 in 2008; $126,202 in 2009; $172,965 in 2010; and $166,254 in 2011. Emert failed to report the income on the corresponding tax year returns. Emert’s willful act of falsely reporting income on her tax returns for the years 2008 through 2011 resulted in income tax due and owing in the amount of $159,907.
Emert was also ordered to pay restitution in the amount of $697,187.78 to Applied Concepts and the IRS.
This case was prosecuted by the Eastern District of Texas on behalf of the Northern District of Texas. This case was investigated by IRS Criminal Investigations and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney M. Andrew Stover.
Cedar Rapids Man Sentenced to More Than Six Years in Federal Prison for Bank RobberyRead the Press Release
A man who robbed a downtown Cedar Rapids bank while he was on federal supervised release was sentenced today to more than six years in federal prison.
Jacob Allen Mack, 24, from Cedar Rapids, Iowa, received the prison term after a July 18, 2014, guilty plea to one count of bank robbery.
At the guilty plea, Mack admitted he robbed the downtown Cedar Rapids branch of Hills Bank and Trust on the morning of May 2, 2014. At the time of the bank robbery, Mack was on federal supervised release following a 2011 conviction in federal district court for unlawful possession of a firearm.
Mack was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Mack was sentenced to fifty-seven months’ imprisonment for bank robbery and was also sentenced to a consecutive twenty-four months’ imprisonment for violating the terms of his federal supervised release. A special assessment of $100 was imposed and he was ordered to make restitution to Hills Bank and Trust. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Mack is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov. The case file numbers are 14-CR-00060 and 10-CR-00120.
Cedar Rapids Man Sentenced to Five Years in Prison for Possessing FirearmsRead the Press Release
A man who illegally possessed firearms on two occasions was sentenced today to five years in federal prison. Timothy Rush, age 24, from Cedar Rapids, Iowa, received the prison term after a July 30, 2014 guilty plea to one count of being an unlawful user of controlled substances (marijuana) in possession of a firearm, and one count of being a felon in possession of a firearm.
In a plea agreement, Rush admitted that, on the night of March 25, 2011, officers found him walking with a juvenile male in an alley off First Avenue. The juvenile was found in possession of ten baggies of marijuana, and Rush was found with a loaded 9mm pistol in his waistband. Rush admitted stealing the weapon, and admitted regularly smoking marijuana. A urine test confirmed his drug use. On May 7, 2012, Rush was found, after a shooting on the southeast side of Cedar Rapids, in possession of a sawed-off shotgun. Rush was convicted in state court for possession of an offensive weapon, a felony offense. Then, on May 29, 2014, officers responded to reports of a man with a gun seen on the southeast side of Cedar Rapids. When officers encountered Rush, who fit the description, he fled, dropping a loaded .380 caliber pistol during the flight. Officers arrested Rush and recovered the weapon. Rush ultimately admitted stealing that weapon.
Rush was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Rush was sentenced to sixty months’ imprisonment. A special assessment of $200 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Rush is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the FBI Safe Streets Task Force and the Cedar Rapids Police Department.
Court file information is available at ttps://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-67.
Boone County Man Admits to Falsifying Mine Safety DocumentsRead the Press Release
Charleston, W.Va. – A Boone County man who falsified mandatory mine safety reports, pleaded guilty today to a federal charge announced United States Attorney Booth Goodwin. Shawn Glenn Stover, 29, of Whitesville, West Virginia admitted to falsifying a Mine Safety and Health Administration (MSHA) document while working at a Boone County mine.
In April of 2013, Stover was hired to work at Newtown Mining Company’s Peerless Rachel mine located in Boone County. In May and June of 2013, Stover acted as a foreman at the mine, despite not being qualified to do so. Stover signed pre-shift and on-shift reports that indicated he had properly examined particular sections of the mine. Stover was not certified as a foreman when he completed the mine reports. Stover also falsified the reports by using multiple foreman’s numbers that did not belong to him.
Stover faces up to five years in prison and a $250,000 fine when he is sentenced on December 12, 2014 by United States District Judge John T. Copenhaver, Jr.
The investigation was conducted by MSHA. Assistant United States Attorney Blaire L. Malkin is in charge of the prosecution.
Bogalusa Man and Woman Sentenced for Drug ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAYMOND BRIDGES, age 53, and MARY DOUGHTY, age 65, both residents of Bogalusa, were sentenced yesterday having previously pled guilty to conspiracy to distribute and conspiracy to possess with intent to distribute cocaine hydrochloride and cocaine base and misprision of a felony, respectively.
U.S. District Judge Jay C. Zainey sentenced BRIDGES to a 24-month term of imprisonment and 4 years of supervised release, while DOUGHTY was sentenced to a 24-month term of probation.
On February 6, 2014, BRIDGES and DOUGHTY were two of 15 defendants charged in an 8-count indictment. This investigation targeted a Drug Trafficking Organization that operated out of the Bogalusa area. The indictment was based on court-authorized wiretaps that recorded conversations between Steven Haynes, who has pleaded guilty in this case, and the defendants, concerning the distribution of powder cocaine that was later converted to crack and sold in Washington and Tangipahoa Parishes.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Michael E. McMahon is in charge of the prosecution.
Bergen County, N.J., Man Sentenced to 17 Months in Prison in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was sentenced today to 17 months in prison for his role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman announced today.
David Pinski, 75, of Fort Lee, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to conspiracy to defraud the United States and theft of government funds. Judge Cecchi imposed the sentence today in Newark federal court.
The scheme caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds, and which resulted in the losses to the United States of more than $12 million.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
• SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
• SIRF perpetrators complete Individual Income Tax Return Form 1040s (Form 1040) using the fraudulently-obtained information, and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
• Perpetrators direct the U.S. Treasury Department to issue the refunds through checks generated by the fraudulent 1040 forms to locations they control or can access, in various ways.
• Certain SIRF perpetrators sell the tax refund checks at a discount to face value. In turn, the buyers then cash the checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing refund checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration. The New Jersey Task Force, with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area engaged in a large-scale, long running SIRF scheme.
Pinski and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Pinski and others used those identifiers to create fraudulent 1040 forms, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds.
The fraudulent 1040 forms were created and filed electronically. By tracing the specific IP addresses that submitted the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms, which, in turn, led to the issuance of tax refund checks that the conspirators obtained, sold, cashed, and spent.
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for tax refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the checks sent to the addresses. In other instances, the conspirators applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators, and collected the checks after they were delivered to those addresses. Hundreds of refund checks were mailed to just a few different addresses in a few towns, including Nutley, Somerset and Newark in New Jersey and Shirley, N.Y. After receiving the checks, Pinski and others cashed the checks and divided the proceeds.
Members of the New Jersey Task Force identified certain “hot spots” of activity related to the scheme, where conspirators were directing millions of dollars of refunds just a few towns and cities. New Jersey Task Force members then interacted with U.S. Postal Service employees in these hot spots, and identified the characteristics of refund checks connected to the scheme. More than $22 million in fraudulently applied for refund checks were interdicted by law enforcement and never delivered.
In addition to the prison terms, Judge Cecchi sentenced Pinski to three years of supervised release and ordered him to pay restitution and forfeiture of $1,379,464.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; the U.S. Secret Service, under the direction of Special Agent In Charge James Mottola; and the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl Kotowski, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Lakshmi Srinivasan Herman, Zach Intrater, Mala Ahuja Harker, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
14-368
Defense Counsel: Samuel DeLuca Esq., Jersey City, N.J.Bedford County Man Sentenced for Firearms ViolationRead the Press Release
Prosecution is part of Project Safe Neighborhoods Initiative
JOHNSTOWN, Pa. - A resident of Schellsburg, Pa., has been sentenced in federal court to 36 months in prison, concurrent with any state sentence, and three years supervised release on his conviction of possession of unregistered destructive devices, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Stephen Edward Weaver, 57.
According to information presented to the court, on June 5, 2011, Weaver was in possession of unregistered destructive devices, specifically two pipe bombs.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Pennsylvania State Police, Troop G Barracks, Bedford Barracks and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Weaver.
According to Mr. Hickton, this case was prosecuted as part of Project Safe Neighborhoods initiative, a collaborative effort by federal, state and local law enforcement, agencies, prosecutors and communities to prevent, deter and prosecute gun crime.
Bail Bondsman Convicted of Stealing over $120,000 in Social Security Disability BenefitsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that MACK CHARLES WELLS JR., age 48, of Zachary, Louisiana, plead guilty before Chief U.S. District Judge Brian A. Jackson to a Bill of Information charging him with theft from the United States Social Security Administration. He is scheduled to be sentenced in February 2015.
During today’s hearing, WELLS admitted to the facts giving rise to the charge. WELLS began receiving disability payments in 1997 after an on-the-job injury. As a recipient of disability payments, WELLS had the affirmative duty to report to the Social Security Administration if his medical condition improved or he resumed working and receiving income. Beginning in February 2007, WELLS began working as a bail bondsman. In June 2007, Wells became the registered agent and member of “All Day Bail Bonding , LLC” in Zachary, Louisiana. From February 2007 through December 2011, WELLS repeatedly failed to disclose and intentionally concealed that he was working and earning income as a bail bondsman. As a result, WELLS fraudulently received more than $120,000 in disability benefit payments.
U.S. Attorney Green stated: “Disability benefits are reserved for those who are unable to work due to a disability. Masquerading as a deserving participant through lies and deceit is outrageous and disrespectful to those who are truly in such an unfortunate situation. We will continue to aggressively pursue those seeking to defraud our nation’s safety net programs.”
This matter was investigated by the Office of the Inspector General for the U.S. Social Security Administration. This matter is being prosecuted by Assistant United States Attorney Lyman E. Thornton III.
Ashtabula Man Faces Firearms and Heroin Charges; Madison Woman Charged with Firearms ViolationsRead the Press Release
A federal grand jury returned a five-count indictment charging Jemel E. Thompson, 25, of Ashtabula, with firearms and drug violations and Maranda M. Rabenold, 31, of Madison, with firearms violations, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Count 1 of the indictment alleges that on or about August 8, 2014, Thompson was in possession of ammunition, after he had been previously convicted of arson in the Oakland County, Michigan, Circuit Court.
Count 2 of the indictment alleges that on or about June 16, 2014, Rabenold, aided and abetted by Thompson, made false statements to The Great Outdoors Store, North Kingsville, Ohio in connection with the purchase of a HiPoint, 9mm pistol.
Count 3 of the indictment alleges that on or about July 19, 2014, Rabenold, aided and abetted by Thompson, made false statements to LWS LJC, Inc., Jefferson, Ohio in connection with the purchase of a HiPoint JCP pistol.
Count 4 of the indictment alleges that on or about September 8, 2014, Thompson attempted to distribute less than 100 grams of heroin.
Count 5 of the indictment alleges that on or about September 8, 2014, Thompson used the United States mail in facilitating an attempt to distribute heroin.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Ashtabula Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Arizona Man Pleads Guilty to Methamphetamine Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Charles Douglas Notbohm, Jr., 50, of Tucson, Ariz., pleaded guilty yesterday afternoon in federal court in Las Cruces, N.M., to methamphetamine trafficking charges.
Notbohm was arrested in Lordsburg, N.M., on Feb. 21, 2014, after officers executed a search warrant on the vehicle in which he were traveling and found more than 116 grams of methamphetamine. On May 21, 2014, Notbohm and a co-defendant, James Richard Reeves, 46, also of Tucson, were indicted and charged with conspiracy and possession of methamphetamine with intent to distribute. On July 16, 2014, Notbohm, Reeves and a third co-defendant, Armando Conrad Gonzales, 33, of Las Cruces, NM, were charged in a superseding indictment with conspiracy and possession of methamphetamine with intent to distribute. The superseding indictment also charged Gonzales with being a felon in possession of a firearm.
Today, Notbohm pled guilty to a felony information charging him with conspiracy and possession of methamphetamine with intent to distribute. In entering his guilty plea, Notbohm admitted that on Feb. 21, 2014, he and Reeves were driving from Tucson to Las Cruces for the purpose of delivering methamphetamine to a co-conspirator. He further admitted that as the two men were driving through Lordsburg, they were stopped by a police officer who found more than 116 grams of methamphetamine in their vehicle.
Notbohm has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, he faces a prison sentence of not more than twenty years in prison.
Reeves was arrested on May 22, 2014, and pled guilty to the two methamphetamine trafficking charges in in the superseding indictment without the benefit of a plea agreement on Sept. 18, 2014. He has been in custody since his arrest and remains detained pending his sentencing hearing, which has not yet been scheduled. At sentencing, Reeves faces a sentence of not less than five years and not more than 40 years in prison.
Gonzales was arrested on May 13, 2014, and remains in custody pending trial. He has entered a not guilty plea to the charges in the superseding indictment. Charges in the indictment are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
This case was investigated by Deming office of Homeland Security Investigations and the Lordsburg Police Department, and is being prosecuted by Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office.
Alison Brown Sentenced to 6 ½ Years in Federal Prison for Manslaughter at Red Lake Indian ReservationRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of ALISON ANN BROWN, 26, a member of the Red Lake Band of Chippewa Indians, to 78 months in federal prison for stabbing to death Byron Lussier, Sr., also a member of the Red Lake Band, in the early morning hours of July 4, 2013 at Lussier’s home on the Red Lake Indian Reservation. BROWN was indicted on August 5, 2013, and pleaded guilty to voluntary manslaughter on February 28, 2014. The Honorable Judge Donovan Frank handed down the sentence, which is within the recommended federal sentencing guidelines range, today in U.S. District Court in St. Paul, Minn.
“We are committed to fighting against senseless violence in Indian Country,” said U.S. Attorney Luger. “This case should serve as a reminder that violence is preventable, and treatment is available for those who suffer from addiction, and who may act maliciously when under the influence. I hope that today’s sentence brings some measure of closure to the family of the victim in this case.”
According to the defendant’s guilty plea and documents filed in court, ALISON BROWN stabbed Byron Lussier, Sr., to death in the kitchen of his own home. On the evening of July 3, 2013, Lussier was at a party, from which he returned home with two friends early in the morning on July 4, 2013. BROWN, who was inebriated at the time, entered Lussier’s home. Despite Lussier’s demand that she leave, BROWN became angry, grabbed two kitchen knives and a BBQ grill fork, and stabbed Lussier in his face and torso. He died as a result of the wounds.
This case was the result of an investigation conducted by the Federal Bureau of Investigation and the Red Lake Police Department.
This case was prosecuted by Assistant U.S. Attorneys Clifford Wardlaw and Steven Schleicher.
Defendant Information:
ALISON ANN BROWN, 26
Red Lake, MN
Convicted:
• Voluntary Manslaughter, 1 count
Sentenced:
• 78 months in prison
• 3 year term of supervised release###
Albuquerque Man Sentenced to Seventy-Two Months for Heroin Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Raymond Moya, 31, of Albuquerque, N.M., was sentenced today to ten years in federal prison followed by six years of supervised release for his heroin trafficking conviction. Moya also was ordered to forfeit $5199 in cash that was seized from him at the time of his arrest.
Moya was charged in Nov. 2011, on a criminal complaint charging him with possession of heroin with intent to distribute, and later was indicted on that same charge in Dec. 2011. According to court filings, Moya was arrested on outstanding state warrants by the Albuquerque Police Department on Nov. 4, 2011. During a search incident to arrest, the officers found that Moya was in possession of 48.77 grams of heroin and $5199 in cash.
On April 10, 2014, Moya entered a guilty plea to the indictment and admitted possessing approximately 50 grams of heroin on Nov. 4, 2011, in Bernalillo County, N.M.
Court records reveal that prior to Nov. 2011, Moya had been convicted of the following felony offenses: possession of a controlled substance, aggravated assault with a deadly weapon, and possession of a controlled substance with intent to distribute.
This case was investigated by the Albuquerque office of the DEA, the U.S. Marshals Service, and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office.
The case was prosecuted by Assistant U.S. Attorneys Sean J. Sullivan and Nicholas J. Ganjei as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Additional Cay Clubs Executive Charged in Connection with $300 Million Ponzi Scheme Involving Sales of Vacation Rental UnitsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Michael Stephens, Acting Inspector General, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), announce that Barry J. Graham, 59, of Ft. Myers, was charged by superseding information with conspiracy to commit bank fraud, in violation of Title 18 United States Code, Section 371, in connection with a $300 million Ponzi scheme involving the sale of vacation rental units to approximately 1,400 investors in the Florida Keys and elsewhere.
Cay Clubs Resorts and Marinas (Cay Clubs) operated from 2004 through 2008 from offices in the Florida Keys and Clearwater. Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States. Cay Clubs would promise to develop dilapidated properties into luxury resorts, and would promise investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing. Once an investor agreed to purchase a unit, Cay Clubs would arrange for a real estate closing and lender financing, but would not disclose the leaseback payment and other financial inducements to the borrowers on paperwork submitted to lending institutions.
According to the superseding information, Graham was the Director of Sales for Cay Clubs from 2004 through late 2007. During this time, Graham conspired with others to fraudulently inflate the prices of Cay Clubs units through insider sales. Graham and other insiders purchased units from Cay Clubs without disclosing their affiliation with Cay Clubs. Thereafter, these insider sale prices were used on marketing materials to make it appear to investors that the Cay Clubs units were rapidly increasing in price. Furthermore, the information alleges, as Cay Clubs experienced financial difficulties, Graham conspired with others to fraudulently market the Cay Clubs investment to new investors by making false and misleading statements, including by concealing Cay Clubs’ failure to convert dilapidated properties into luxury resorts.
Previously, Fred Davis Clark, Jr., and Cristal R. Clark, a/k/a Cristal R. Coleman, were charged by superseding indictment on September 16, 2014, with conspiracy to commit bank fraud and substantive counts of bank fraud, in connection with the alleged Cay Clubs Ponzi scheme. The defendants were ordered detained pretrial and the matter is currently pending before U.S. District Judge Jose E. Martinez in Key West.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and FHFA-OIG, and the assistance of the SEC Miami Regional Office in this matter. This matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An information is only an accusation and the defendant is presumed innocent until proven guilty.
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.
Tuesday 7 October 2014
Tri-Cities Man Sentenced to 180 Months for Drug and Firearm OffensesRead the Press Release
GREENEVILLE, Tenn. – David Anthony Mantey, 41, of Gray, Tenn., was sentenced on Oct. 6, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 180 months in federal prison. Mantey was previously convicted of possession with intent to distribute crack cocaine and being a felon in possession of a firearm.
In November 2013, officers with the Johnson City Police Department observed a gold minivan driving in Johnson City, Tenn., and identified Mantey as the driver. Knowing his driver’s license had been previously revoked, they conducted a traffic stop. Mantey parked his vehicle in an alleyway, immediately exited, and attempted to flee. However, after verbal commands from the officers, he halted and returned to the car. The officers approached the vehicle, confirmed his identity, and then removed him from the vehicle for questioning. At that time, Mantey admitted to possessing a small amount of marijuana on his person. A search yielded approximately four grams of marijuana from his vest pocket, as well as $896 in various denominations. Mantey was arrested for traffic and drug violations and transported to the Washington County Detention Center. Upon arrival he was processed and searched more thoroughly, where he was found to be hiding approximately 23 grams of cocaine base (“crack”) in his underwear.
In March 2014 members of the First Judicial Drug Task Force, in cooperation with agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), arranged to purchase a firearm from Mantey using an individual working on behalf of law enforcement. After a series of calls to Mantey to coordinate the transaction, he agreed to sell a rifle and a pistol for $2,000. With law enforcement agents watching, the individual working on their behalf went to a residence in Gray, Tenn., which was the ultimately agreed upon transaction site. Mantey exited a nearby trailer upon the individual’s arrival and guided him to a parked minivan which they both entered. Mantey retrieved a black bag from the back seat of the minivan which contained a Bushmaster, Model Carbon 15, .223 caliber, semiautomatic rifle; and a Glock, model 36, .45 caliber, semiautomatic pistol. While discussing the functioning of the firearms, Mantey gave the individual a single round of Winchester, .223 caliber, ammunition. The individual gave Mantey the purchase money and both individuals departed. Subsequently, law enforcement met with the individual and recovered the firearms and ammunition.
This case was the product of cooperation between the Johnson City Police Department; First Judicial District Drug Task Force; and ATF. Assistant U.S. Attorney Nick Regalia represented the United States.
Three Sentenced in Painkiller Distribution RingRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA – Three co-defendants of Dr. Edita Milan were sentenced Tuesday for their role in a conspiracy to distribute prescription pills through the doctor’s office, United States Attorney William J. Ihlenfeld, II, announced today.
Lois Crites, 50, of Fairmont served as the doctor’s office manager from August 2010 until the office was closed in June 2013 after the execution of numerous federal search warrants. Crites pled guilty in June 2014 to conspiracy to distribute Schedule II and III controlled substances. Crites was sentenced to 24 months in prison and three years of supervised release.
Lois Crites’ son, Daniel J. Quirk, 30, also of Fairmont, pled guilty in June 2014 to distributing hydrocodone. He was sentenced to 12 months incarceration with six months to be served in prison followed by six months of home detention and 2 years of supervised release.
A third co-defendant, Brandi Mayo, 30, of Weston pled guilty in June 2014 to June 2014 plea to using a communication facility to illegally obtain hydrocodone. Mayo was sentenced to one year probation with eight months to be served on home confinement with electronic monitoring.
The convictions were the result of a 2 ½ yearlong investigation led by the Greater Harrison County Drug Task Force, which began with citizen complaints of the prescription writing practice of Dr. Milan from her Bridgeport, West Virginia office. Crites admitted her involvement with distributing more than 400 oxycodone pills and 25,000 hydrocodone pills through the doctor’s office. Dr. Milan is scheduled for trial on November 5, 2014.
U.S. District Judge Irene M. Keeley presided.
Three Jefferson Davis County Men Convicted on Federal Drug and Gun ChargesRead the Press Release
Hattiesburg, Miss - On Monday, October 6, after a week-long trial, Kentorre D. Hall a/k/a Toto, 31, of Prentiss, Roger Randale Jones a/k/a Hitman, 27, of Prentiss, and Martel Torres Barnes a/k/a Marty Mar, 23, of Bassfield, were found guilty on four counts of an indictment charging them with conspiracy to possess with intent to distribute methamphetamine, marijuana and cocaine; maintaining a residence to manufacture, store or distribute controlled substances; conspiracy to possess and use firearms in furtherance of drug trafficking; and possession of firearms in furtherance of drug trafficking, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Phillip Durham of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Hall, a quadriplegic, was also found guilty of an additional count of possession with intent to distribute methamphetamine. The defendants will be sentenced on December 4, 2014 by U.S. District Judge Keith Starrett in Hattiesburg. The each face a maximum penalty of life in prison and $10 million fine.
The case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the District Attorney’s Office of the 15th Circuit Court District and the Mississippi Bureau of Narcotics. It was prosecuted by Assistant U.S. Attorney Annette Williams.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Stockbroker Indicted for Scheme to Defraud Clients of More Than $1 MillionRead the Press Release
Baltimore, Maryland – A federal grand jury indicted Gary Clark Steciuk, age 39, of Buffalo Grove, Illinois and Heber Springs, Arkansas, today on charges of mail fraud, securities fraud and money laundering, related to a scheme to defraud his clients of more than $1 million.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to the five count indictment Steciuk was a stockbroker, who worked primarily out of his home in Buffalo Grove. Steciuk was authorized to sell securities, such as stocks, bonds, option, mutual funds and variable annuities. In approximately 2009, Steciuk established a business, College Funding Solutions, ostensibly to provide investment advice to clients interested in investing and saving for college expenses, and opened a business bank account in the name of the business.
The indictment alleges that from January 2008 through August 2014, Steciuk embezzled funds from his clients’ investment accounts. These accounts were established and funded with client retirement funds and were maintained by the issuers of the annuities. The indictment alleges that Steciuk used a variety of methods to embezzle the funds. For example, Steciuk allegedly submitted forged forms to change his clients’ address at the firm that issued the annuities to a post office box in Hampstead, Maryland, that Steciuk controlled, then directed the firm to send funds from his clients’ accounts by check to the post office box. Steciuk then allegedly forged the clients’ signatures on the back of the check, which were in the clients’ names, and deposited the checks into bank accounts he controlled. In addition, the indictment alleges that: Steciuk created fraudulent and unauthorized loans from the clients’ annuities for his benefit; used forged transfer forms and forged checks to make unauthorized withdrawals; and liquidated the annuities in their entirety and stole the proceeds.
The total loss resulting from the fraudulent scheme is alleged to be at least $1,064,501, and the indictment seeks forfeiture of that amount, as well as property in Buffalo Grove, Illinois, Westminster, Maryland and Maui, Hawaii.
Steciuk faces a maximum sentence of 20 years in prison for mail fraud, each of three counts of securities fraud and for money. An initial appearance is scheduled for October 10, 2014, in U.S. District Court in Baltimore. Steciuk is detained.
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 FBI for its work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Gregory R. Bockin, who is prosecuting the case.
St. Louis County Man Pleads Guilty to Tax ChargesRead the Press Release
St. Louis, MO – RAJU MUKHI pled guilty to failing to file a report to the IRS on his foreign financial accounts and for filing false tax returns.
United States citizens are required to report income from foreign countries, such as bank accounts, securities and any other financial accounts on their tax returns. If the value is more than $10,000, they are required to file a Report of Foreign Bank and Financial Accounts, Form TD F90-22.1 (FBAR).
According to court documents, Mukhi failed to disclose the existence of Clariden Bank and Goldman, Sachs & Company Bank-Singapore accounts and the income earned in these accounts, to his tax preparers for the years 2006 and 2008. Additionally, Mukhi, failed to file an FBAR disclosing that he had financial accounts in Singapore and Switzerland for years 2007-2010."Every honest American who pays his or her taxes should be offended that a select few use anonymous offshore accounts to avoid paying their fair share," said Sybil A. Smith, Special Agent in Charge, IRS Criminal Investigation. "It is our duty to the American taxpayer to use all lawful means to identify and prosecute those who use offshore accounts to evade their taxes."
Mukhi, St. Louis, MO, pled to one felony count of filing false tax returns and one felony count of failure to file reports of foreign bank and financial accounts. He appeared before United States District Judge Audrey G. Fleissig. Sentencing has been set for January 15, 2015.
Each count of filing false tax returns carries a maximum penalty of three years in prison and/or fines up to $100,000; each of the other counts carry a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
Seven More Individuals Indicted for Conspiracy to Distribute Synthetic DrugsRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that seven more individuals have been charged along with the original eight individuals and a business previously indicted by a federal grand jury for their roles in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Wesley Adam Upchurch, 27, of Columbia, Mo., Jimmy Dean Moore, 49, and his wife, Tina Irene Moore, 44, owners of Moore-4-You in Queen City, Mo., Sharon Elizabeth Harrington, 27, of Bunceton, Mo., Travis Scott Lovett, 34, of Purdin, Mo., Jessica Lynn Lovett, 31, of Bucklin, Mo., and Michael Sosnowski, 29, of Jefferson City, Mo., were charged in a 13-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Thursday, Oct. 2, 2014. That indictment was unsealed and made public today upon the arrest and initial court appearance of Upchurch.
The superseding indictment replaces an Oct. 18, 2013, federal indictment; the superseding indictment contains additional charges and includes the original defendants: Matthew Ashby Hawkins, 39, his brother, Patrick Ross Hawkins, 32, and his sister, Molly Jane Carmichael, 37, all of Columbia, Alexander Vladimir McMillin, 29, of Columbia, Kent Allen Holtz, 43, of Kaiser, Mo., Chadwick James Schlicht, 44, of Osage Beach, Mo., Charles Sterling Austin, Jr., 61, of St. Charles, Mo., Scott Wesley Hanson, 48, of Versailles, Mo., Thomas Lee McCormack, 29, of Jefferson City, and Puff N Snuff, a retail business in Eldon, Mo.
The federal indictment alleges that all of the defendants participated in a conspiracy to distribute a controlled substance analogue, also known as synthetic marijuana or K2, between March 1, 2011, and Oct. 2, 2013. K2 is a mixture of plant material that has been sprayed or mixed with a synthetic chemical compound similar to THC (tetrahydrocannabinol), the psychoactive ingredient in marijuana. K2 products are often labeled as “incense,” but in reality are intended for human consumption as a drug.
The federal indictment also alleges that Upchurch, McMillin, Matthew Hawkins, Patrick Hawkins, Carmichael, Austin, Tina Moore, Jimmy Moore, Travis Lovett, Jessica Lovett, and Puff n Snuff participated in a conspiracy to commit mail fraud. They allegedly conspired to defraud the Food and Drug Administration and the public by making false representations that “Mayan” and “4Bidden” products were “incense” and “not for human consumption.” In reality, the indictment says, these products were synthetic marijuana intended for human consumption as a drug and were delivered by commercial carrier such as Federal Express.
The indictment also charges McMillin, Matthew Hawkins, Patrick Hawkins, Carmichael, Austin and Sosnowski with participating in a money-laundering conspiracy from Dec. 7, 2011, to Oct. 2, 2013. According to the indictment, they conspired to engage in financial transactions that involved the proceeds of the drug-trafficking conspiracy.
In addition to the criminal conspiracies, the indictment charges McMillin, Holtz and Hanson with one count each of distributing a controlled substance analogue. McMillin, Hanson and McCormack are also each charged with one count each of possessing a controlled substance analogue with the intent to distribute.
Holtz, Austin, Hanson and McCormack are also charged with one count each of maintaining a place for the purpose of storing and distributing a controlled substance analogue.
The indictment also contains a forfeiture allegation, which would require the defendants to forfeit to the government any property derived from the proceeds of the alleged conspiracies, or used to facilitate the alleged conspiracies, including $423,327 seized from Puff N Snuff’s bank account, $177,398 seized from Order Refill’s bank account (controlled by McMillin, Matthew Hawkins, Patrick Hawkins and Carmichael), $14,215 seized from Mozark Products’ bank account (controlled by Sosnowski) and $82,149 seized from McMillin.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Department of Homeland Security, the Columbia, Mo., Police Department, the MUSTANG Task Force, the LANEG Drug Task Force, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department, the Camden County, Mo., Sheriff’s Department and the Camdenton, Mo., Police Department.- Santeria Follower and Others Head to Prison on Federal Drug Charges
San Diego Man Charged with Sexual Exploitation of a MinorRead the Press Release
DES MOINES, IA – On October 7, 2014, David Anthony Lavera, age 33, of San Diego, California, had his initial appearance and arraignment on federal child pornography charges in the U.S. District Court for the Southern District of Iowa, announced United States Attorney Nicholas A. Klinefeldt. Trial was set for December 1, 2014.
Lavera was indicted by a federal grand jury on charges of knowingly producing child pornography, or sexual exploitation of a minor, as well as knowingly possessing child pornography. If convicted on the production/sexual exploitation charge, Lavera faces a sentence of no less than 15 and no more than 30 years in federal prison, plus between 5 years and a life term of supervised release. If convicted on the possession of child pornography charge, the potential punishment is up to 20 years in prison, and between 5 years and a life term of supervised release. Both crimes carry a maximum $250,000 fine as a potential punishment, as well.
Lavera was taken into federal custody on Monday, October 6, 2014 by the U.S. Marshals Service. At the court appearance, U.S. Magistrate Judge Ross Walters ordered Lavera to remain in federal custody pending trial.
An indictment is merely an accusation, and Lavera is presumed innocent until and unless proven guilty.
The case has been investigated by a team that includes agents with Homeland Security Investigations at the U.S. Department of Homeland Security, the Jasper County Sheriff’s Office, the Iowa Department of Criminal Investigation, the Newton, Iowa, Police Department, and the Baxter, Iowa, Police Department.
The case is being prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.
Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
(Download Press Release)
- Procurement and Sales Manager Arrested for Embezzling from Former Employer
Pennsylvania Priest Indicted for Traveling to Honduras to Sexually Abuse Minor Boys in OrphanagesRead the Press Release
WASHINGTON— A Pennsylvania Roman Catholic priest was indicted today in the Western District of Pennsylvania and charged with foreign travel to engage in illicit sexual conduct with minors and possession of child pornography.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David J. Hickton of the Western District of Pennsylvania made the announcement.
Joseph D. Maurizio Jr., 69, a priest at the Diocese of Altoona-Johnstown, was originally charged by criminal complaint and arrested on Sept. 25, 2014. He has been in custody since his arrest.
According to allegations in the indictment and complaint, each year between 1999 and 2009, Maurizio traveled from Pennsylvania to Honduras to assist a non-profit organization that provides services to children there. While he was in Honduras, Maurizio provided money or candy to minor boys in an orphanage and engaged in unlawful sexual activities. Maurizio is also charged with possession of material depicting minors engaging in sexually explicit conduct.
Following search warrants executed on Sept. 12, 2014, at the rectory at Our Lady Queen of Angels Church in Central City, Pennsylvania, and a farm owned by Maurizio in Windber, Pennsylvania, law enforcement seized various computers and electronic devices, including a hard drive allegedly containing images depicting minors engaging in sexually explicit conduct.
The charges in the complaint and indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case is being investigated by HSI’s Pittsburgh Office and prosecuted by Criminal Division Trial Attorney Amy E. Larson of the Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Stephanie Haines of the Western District of Pennsylvania.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Penn Hills Man Conspired to Distribute Cocaine in Western PARead the Press Release
PITTSBURGH, PA - A Penn Hills man pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Paul Davis, 40, pled guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around December 2012, and continuing thereafter to in and around January 2013, in the Western District of Pennsylvania, Davis conspired to distribute and possess with the intent to distribute 500 grams or more of cocaine.
Judge Conti scheduled sentencing for Feb. 6, 2015 at 2 p.m. The law provides for a total sentence of up to 40 years in prison, a fine of up to $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan B. Oritz is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania State Attorney General's Office, the Internal Revenue Service Criminal Investigation Division, the Pittsburgh Bureau of Police, and the Allegheny County District Attorney's Narcotics Enforcement Team conducted the investigation that led to the prosecution of Paul Davis.
North Platte Man Convicted of Failing to Register as a Sex OffenderRead the Press Release
United States Attorney Deborah R. Gilg announced that Johnny Michael Castro, age 33 and formerly of North Platte, Nebraska, was sentenced on October 3, 2014, to a 30 month term of imprisonment for failing to register as a sex offender in the State of Nebraska after relocating here in early 2014. After his release from prison, Castro will be required to serve a five year term of supervised release and be registered as a sex offender.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations. Castro was required to register as a sex offender because he had been convicted of sexual battery in 2001 in the Superior Court for Sacramento County, California. This conviction required that Mr. Castro register as a sex offender in the state of California, and by federal law, in any other state to which he moved.
This case was investigated by the United States Marshals Service.
New Orleans Woman, Kwanza Wells, Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KWANZA WELLS, age 34, a resident of New Orleans, pled guilty today to a one-count bill of information for conspiracy to commit wire fraud.
According to the bill of information, beginning in or about October 2010 and continuing until in or about November 2010, WELLS willfully conspired to device a scheme to obtain money by means of fraudulent representations and to defraud the Gulf Coast Claims Facility (GCCF), which was established by BP Exploration and Production, Inc. (BP) concerning the April 10, 2010 explosion on the Deepwater Horizon; and as a result of WELLS false and fraudulent representations and documentation, the GCCF paid her approximately $19,500, in violation of Title 18, United States Code, Section 371.
WELLS faces a maximum term of imprisonment of five years and a fine of up to $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Jay C. Zainey set sentencing for January 13, 2015.
U.S. Attorney Polite praised the work of the Secret Service and FBI in investigating this matter. Assistant United States Attorney Irene Gonzàlez is in charge of the prosecution.
(Download Factual Basis )
New Jersey Man Pleads Guilty to Traveling with the Intent to Engage in Sexual Activity with A MinorRead the Press Release
ALEXANDRIA, Va. – Rolando Feliciano, 49, of Elizabeth, New Jersey, pleaded guilty today to charges relating to engaging in sexual activity with a 13-year old girl from Fairfax County, Va.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler, Jr., Chief of Police of the Fairfax County Police Department; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee.
According to documents filed with the court, in July 2013, Feliciano used the website Facebook to contact the 13-year old girl. Between July 2013 and March 2014, he had nearly daily contact with her using Facebook, Skype, and Facetime. During their conversations, Feliciano repeatedly requested that she send him sexually explicit photographs and videos. In addition, on three occasions Feliciano drove from New Jersey to Virginia to meet with the girl. On two of those occasions he picked her up at her middle school, drove to a nearby park and engaged in sexual activity with her.
Feliciano was charged in a Superseding Information on October 7, 2014 with travel with intent to engage in illicit sexual contact with a minor, and receipt of child pornography. Feliciano faces a maximum penalty of 30 years in prison when he is sentenced on January 9, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the Fairfax County Police Department, and FBI’s Washington Field Office. Assistant U.S. Attorney’s Matt Gardner and Whitney Russell are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-261.
Native Mob Gang Leader Sentenced to 43 Years in PrisonRead the Press Release
United States Attorney Andrew M. Luger today announced the sentence last week of WAKINYON WAKAN MCARTHUR, a/k/a “Kon,” a/k/a “Killa,” 36, the former leader of the Native Mob, to 43 years in prison. WILLIAM EARL MORRIS, 27, and ANTHONY FRANCIS CREE, 27, were also sentenced to 35 years and approximately 24 years respectively. The defendants were convicted by a jury on March 19, 2013, after a trial lasting nearly seven weeks. They were sentenced today in U.S. District Court in Minneapolis before United States District Court Judge John R. Tunheim.
As proven at trial, the Native Mob is a regional criminal organization that originated in Minneapolis in the early 1990s. Members routinely engage in drug trafficking, assault, robbery, and other violent crime, including murder. Membership is estimated at 200, with new members, including juveniles, regularly recruited from communities with large, male, Native American populations. Association with the gang is often signified by wearing red and black clothing or sporting gang-related tattoos. According to the 2011 National Gang Threat Assessment, the Native Mob is one of the largest and most violent Native American gangs in the U.S. and is most active in Minnesota and Wisconsin.
As proven at trial and according to documents filed in court, since at least the mid-1990s, MCARTHUR, MORRIS, CREE, and others have conspired to engage in criminal activity through the Native Mob, in violation of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. The primary objective of the Native Mob is to preserve, protect, promote, and enhance its power, territory, and finances, which gang members sought to accomplish by distributing illegal drugs, including crack cocaine. Native Mob members also provide financial support to other members, including those incarcerated; share with one another police reports, victim statements, and other case discovery; hinder or obstruct officials from identifying or apprehending those wanted by the law; and intimidate witnesses to Native Mob crimes. Moreover, they maintain and circulate firearms for gang use and commit acts of violence, including murder, against individuals associated with rival gangs.
In addition to MCARTHUR, MORRIS, and CREE, 25 other defendants have pleaded guilty or been convicted of conspiracy and other crimes related to their membership in the Native Mob. Those defendants were sentenced to between 2 ½ and 43 years in prison for their crimes.
This case was the result of a long-term, cross-jurisdictional investigation conducted by numerous local, state, federal, and tribal law enforcement officers. These agencies include representatives from the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration; the U.S. Bureau of Indian Affairs; the FBI-funded Headwaters Safe Trails Task Force; the Paul Bunyan Drug Task Force; the Minnesota Department of Corrections; the Minnesota Bureau of Criminal Apprehension; the Carlton County Sheriff’s Office; the Mille Lacs Tribal Police Department; the Bemidji Police Department; and the Minneapolis Police Department. These investigators were assisted by those from—in alphabetical order—the Becker County Sheriff’s Office, the Beltrami County Sheriff’s Office, the Carlton County Attorney’s Office, the Cass County Attorney’s Office, the Cass County Sheriff’s Office, the Crow Wing County Sheriff’s Office, the Douglas County Sheriff’s Office of Wisconsin, the Duluth Police Department, the Fon du Lac Tribal Police Department, the Fridley Police Department, the Itasca County Sheriff’s Department, the Hennepin County Attorney’s Office, the Hennepin County Sheriff’s Office, the Hubbard County Sheriff’s Office, the Leech Lake Tribal Police Department, the LCO Reservation Police Department, the Lower Sioux Tribal Police Department, the Mahnomen County Sheriff’s Office, the Minnesota State Patrol, the Mille Lacs County Attorney’s Office, the Mille Lacs County Sheriff’s Office, the New Brighton Police Department, the North Central Drug Task Force, the Prior Lake Police Department, the Red Lake Tribal Police Department, the Redwood County Sheriff’s Office, the Richfield Police Department, the Sherburne County Sheriff’s Office, the St. Paul Police Department, the U.S. Marshals Service, the Minneapolis Violent Offender Task Force, the Washington County Sheriff’s Office, and the White Earth Tribal Police Department.
This case was prosecuted by Assistant U.S. Attorneys Andrew R. Winter and Steven L. Schleicher.
Defendant Information:
WAKINYON WAKAN MCARTHUR, 36
Cass Lake, Minn.
Convicted:
• Conspiracy to Participate in Racketeering Activity, 1 count
• Conspiracy to Use and Carry Firearms During and in Relation to a Crime of Violence, 1 count
• Conspiracy to Distribute and Possess With Intent to Distribute Controlled Substances, 1 count
• Distribution of a Controlled Substance, 1 count
• Use and Carrying of a Firearm During and in Relation to a Crime of Violence, 2 counts
Sentenced:
• 43 years in federal prison
ANTHONY FRANCIS CREE, 27
Cass Lake, Minn.
Convicted:
• Conspiracy to Participate in Racketeering Activity, 1 count
• Conspiracy to Use and Carry Firearms During and in Relation to a Crime of Violence, 1 count
• Attempted Murder in Aid of Racketeering, 1 count
• Assault with a Dangerous Weapon in Aid of Racketeering, 1 count
• Use and Carrying of a Firearm During and in Relation to a Crime of Violence, 1 count
• Conspiracy to Distribute and Possess With Intent to Distribute Controlled Substances, 1 count
Sentenced:
• 24 1/3 years in federal prison
WILLIAM EARL MORRIS, 27
Cass Lake, Minn.
Convicted:
• Attempted Murder in Aid of Racketeering, 1 count
• Assault with a Dangerous Weapon in Aid of Racketeering, 1 count
• Use and Carrying of a Firearm During and in Relation to a Crime of Violence, 1 count
• Armed Career Criminal in Possession of a Firearm, 1 count
Sentenced:
• 35 years in federal prison###
Mississippi Man Pleads Guilty to Paying Bribes to Employees at Military Base for Freight BusinessRead the Press Release
A former driver for a national trucking company pleaded guilty today to bribery charges, admitting that he bribed employees in the Traffic Office at the Marine Corps Logistics Base Albany (MCLB-Albany) in order to obtain lucrative freight hauling business, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
David R. Nelson, 54, of Lucedale, Mississippi, pleaded guilty today before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During his guilty plea, Nelson, a former driver for a large transportation company based in Louisville, Kentucky, admitted to paying more than $100,000 in bribes between 2006 and 2012 to officials in the Traffic Office at MCLB-Albany in exchange for obtaining freight shipments from the base to destinations on the West Coast. The bribes started at $500 for each shipment, but later grew to as much as $1,500 per shipment. From the money he made from these freight shipments, Nelson purchased a $50,000 specially-modified trailer that allowed him to carry multiple Protected Security Service loads on a single trip.
As part of his plea agreement with the United States, Nelson agreed to forfeit the proceeds he received as a result of the bribery scheme, as well as to pay full restitution to the Department of Defense. Sentencing will be scheduled at a later date.
The case is being investigated by the Naval Criminal Investigative Service and the Defense Criminal Investigative Service. The case is being prosecuted by Trial Attorneys Richard B. Evans, J.P. Cooney and John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
Mississippi Man Pleads Guilty to Paying Bribes to Employees at Military Base for Freight BusinessRead the Press Release
WASHINGTON – A former driver for a national trucking company pleaded guilty today to bribery charges, admitting that he bribed employees in the Traffic Office at the Marine Corps Logistics Base Albany (MCLB-Albany) in order to obtain lucrative freight hauling business, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.David R. Nelson, 54, of Lucedale, Mississippi, pleaded guilty today before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.
During his guilty plea, Nelson, a former driver for a large transportation company based in Louisville, Kentucky, admitted to paying more than $100,000 in bribes between 2006 and 2012 to officials in the Traffic Office at MCLB-Albany in exchange for obtaining freight shipments from the base to destinations on the West Coast. The bribes started at $500 for each shipment, but later grew to as much as $1,500 per shipment. From the money he made from these freight shipments, Nelson purchased a $50,000 specially-modified trailer that allowed him to carry multiple Protected Security Service loads on a single trip.
As part of his plea agreement with the United States, Nelson agreed to forfeit the proceeds he received as a result of the bribery scheme, as well as to pay full restitution to the Department of Defense. Sentencing will be scheduled at a later date.
The case is being investigated by the Naval Criminal Investigative Service and the Defense Criminal Investigative Service. The case is being prosecuted by Trial Attorneys Richard B. Evans, J.P. Cooney and John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia.
Massachusetts Man Sentenced to 15 Years in Prison for Cocaine Trafficking ConspiracyRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Brian
Wilkerson, 36, of Dorchester, Massachusetts was sentenced yesterday in U.S. District Court by
Judge George Z. Singal to 15 years in prison and eight years of supervised release for conspiring
to distribute cocaine. Wilkerson pleaded guilty on October 28, 2013.
According to court records, from early 2012 until June 2013, Wilkerson supplied
kilogram quantities of cocaine to David Goyette in Auburn, Maine. Goyette and others
distributed the cocaine to customers in the greater Lewiston/Auburn area. Goyette pleaded guilty
to conspiracy and cocaine distribution charges on August 29, 2014 and awaits sentencing.This case results from a joint investigation conducted by the United States Drug
Enforcement Administration, the Maine Drug Enforcement Agency, the Lewiston and Auburn
Police Departments and the ongoing effort of the Organized Crime Drug Enforcement Task
Forces (OCDETF), a partnership between federal, state and local law enforcement agencies. The
principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious
drug trafficking, weapons trafficking and money laundering organizations, and those primarily
responsible for the nation’s illegal drug supply.Manhattan Woman Pleads Guilty in Marriage Fraud SchemeRead the Press Release
TOPEKA, KAN. - A Manhattan woman pleaded guilty Monday to taking part in a marriage fraud scheme, U.S. Attorney Barry Grissom said.
Jacqueline Michaelle Reed, 48, Manhattan, Kan., pleaded guilty to one count of conspiracy to commit marriage fraud. In her plea, Reed, who is a United States Citizen, admitted she entered into a marriage contract with co-defandant Yun Chiu for the purpose of evading U.S. immigration laws. Chiu was a foreign national who was seeking lawful permanent residency status in this country. Their arrangement was part of a conspiracy led by Quong Bow Low, who was paid for helping aliens seek residency. Low’s fees covered such services as coaching the defendants as to how to answer questions during an immigration interview so that officials would believe the couple had entered in a valid marriage.
Reed and Chiu submitted fraudulent paperwork to immigration authorities, including a marriage license that never was filed with the state of Kansas, as well as a false declaration they were in a valid marriage and resided together at the same address in Lawrence, Kan.
Reed is set sentencing Jan. 12. She faces a maximum penalty of five years in federal prison and a fine up to $250,000.
Co-defendants include:
Yun Chiu is set for trial Nov. 12.
Quong Bow Low is set for sentencing Nov. 14.Grissom commended the Department of Homeland Security and Assistant U.S. Attorney Christine Kenney for their work on the case.
Man Sentenced in Manhattan Federal Court to Two Consecutive Life Terms for February 2000 Double Murder in the BronxRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JOE FERNANDEZ was sentenced today in Manhattan federal court to two consecutive terms of life in prison by U.S District Judge Alvin K. Hellerstein. FERNANDEZ was found guilty on March 7, 2013, following a three-week jury trial, of conspiring to commit a murder-for-hire and using a firearm in furtherance of a crime of violence, with death resulting. FERNANDEZ was convicted for his role in the murders of Arturo Cuellar (“Cuellar”) and Ildefonso Vivero Flores (“Flores”) in the Bronx on February 22, 2000.
Manhattan U.S. Attorney Preet Bharara said: “Joe Fernandez was convicted last year of a ruthless double murder he committed nearly 15 years ago. For $40,000 he ambushed two men and shot them multiple times at close range. Today he learned the price for his wanton disregard for human life. He will spend the rest of his life in prison.”
According to the evidence presented at trial, statements made during other court proceedings including today’s sentencing, and other court documents:
In late 1999 and early 2000, a drug trafficking organization in New York City (the “New York DTO”) was receiving large quantities of cocaine from a Mexican drug trafficking organization (the “Mexican DTO”). In or about February 2000, Cuellar and Flores, two representatives of the Mexican DTO, coordinated the delivery of approximately 274 kilograms of cocaine to the New York DTO. The cocaine was distributed to members of the New York DTO, who sold the drugs on the street, while Cuellar and Flores remained in New York City waiting to receive payment for the drugs.
Instead of paying Cuellar and Flores, however, members of the New York DTO conspired to murder Cuellar and Flores and keep the drug proceeds. On February 21, 2000, members of the New York DTO hired a hitman, co-defendant Patrick Darge (“Darge”), to kill Cuellar and Flores the next day. That same evening, Darge hired FERNANDEZ to serve as his backup during the murders in the event something went wrong. Darge agreed to pay FERNANDEZ $40,000 for this role as a backup during the murders.
On February 22, 2000, Cuellar and Flores were escorted to an apartment building at 3235 Parkside Place in the Bronx, under the ruse that they would be receiving payment for the cocaine at an apartment in that building. Darge and FERNANDEZ, both armed with firearms, were waiting in the lobby of that building for Cuellar and Flores to arrive. Upon Cuellar and Flores’s entrance into the lobby of 3235 Parkside Place, Darge approached Cuellar from behind and fired a gunshot into Cuellar’s skull. Darge’s gun jammed after that shot, at which point FERNANDEZ fired fourteen gunshots, nine of which connected into the bodies of Cuellar and Flores. Cuellar and Flores died as a result of their gunshot wounds.
As negotiated, Darge paid FERNANDEZ $40,000 for his role in the February 22, 2000, murders.
FERNANDEZ, 38, was convicted of one count of participating in a murder-for-hire conspiracy, with death resulting, in violation of Title 18, United States Code, Section 1958, and one count of using a firearm arm in furtherance of a crime of violence, causing death, in violation of Title 18, United States Code, Section 924(j). In addition to the two consecutive prison terms of life, FERNANDEZ was ordered to pay a $200 special assessment fee.
The investigation was conducted by the Drug Enforcement Administration’s New York Drug Enforcement Task Force (the “Task Force”) and the New York City Police Department (“NYPD”). Mr. Bharara thanked the Task Force and the NYPD for their work in the investigation.
The case is being handled by the Office’s Violent and Organized Crimes Unit and Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Todd Blanche, John P. Cronan, and Russell Capone are in charge of the prosecution.
Local Man Pleads Guilty to Aggravated Identity Theft, Used Deceased Children’s Identities to File False Income Tax ReturnsRead the Press Release
CINCINNATI, OHIO – Christopher K. Smith, 28, of Cincinnati, Ohio, pleaded guilty one count of aggravated identity theft relative to filing false federal income tax returns with the Internal Revenue Service (IRS) using the stolen identities belonging to deceased individuals, including children. Smith faces a mandatory prison term of two years and a fine of up to $250,000, or twice the amount of the gain or loss.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office, announced the guilty plea entered before U.S. District Judge Michael R. Barrett.
According to court documents, between February 2012 and June 2012 Christopher Smith electronically submitted at least five false income tax returns to the IRS for the 2011 income tax year using at least ten stolen identities, all but one of which belonged to deceased individuals, including children. Smith attempted to file at least three more false income tax returns using nine other stolen identities, but these returns were rejected by the IRS.
Smith prepared and filed the false income tax returns in Fairfield, Ohio. The income tax returns contained fabricated information as it related to the taxpayer, including addresses, dependents, occupations, income amounts and education expenses. The inclusion of this false information often qualified the taxpayer listed on the return to receive the Earned Income Credit, Additional Child Tax Credit and Education Credit, which resulted in even greater refund amounts.
Smith primarily used the stolen identities of deceased persons-using the names and Social Security numbers of adults as the taxpayers and the names and Social Security numbers of children as the dependents. He further indicated on the returns that the children had passed away during the tax year. In at least four instances, including his own 2011 tax return, Smith had to change the names and Social Security numbers used as dependents on each return, until they were accepted by the IRS, as some of the victims' information had already been sent to the IRS.
Smith prepared and electronically submitted a false federal income tax return using his own name as a taxpayer and the stolen identity of an individual, falsely claiming the stolen identities of this individual’s daughter and son. This then allowed him to falsely qualify for the Earned Income Tax Credit and Additional Child Tax Credit. Smith claimed, and received on a prepaid debit card, a fraudulent refund in the amount of $7,482. Both the children’s identities were those of children who had died in 2011. Neither of the children’s parents had given Smith permission to use their child’s Social Security number of claim their child on his tax return.
The total intended loss for this scheme was $41,522. For restitution purposes, Smith owes the IRS $9,344.
Smith was detained, and a sentencing date is yet to be scheduled.
“Identity theft, especially involving the use stolen identities of deceased individuals and children, is a contemptible modern-day scourge,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Individuals who commit refund fraud and identity theft with this degree of trickery, dishonesty and deceit, deserve to be punished to the fullest extent of the law.”
U.S. Attorney Stewart commended the investigation by IRS and Assistant United States Attorney Jessica W. Knight, who is prosecuting this case.