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18 November 2014
Rockford Man Sentenced to 14 Years in Prison for Drug TraffickingRead the Press Release
ROCKFORD — A Rockford, Ill. man was sentenced yesterday in federal court by U.S. District Judge Frederick J. Kapala on a federal drug trafficking charge. The defendant, MICHAEL CRAIG, 44, was sentenced to 169 months in federal prison, to be followed by 5 years of supervised release. Craig has been in federal custody since his arrest on March 15, 2013.
Craig pleaded guilty to the charge on March 21, 2014. According to the written plea agreement, from June 1, 2010 through January 5, 2012, Craig ran a heroin trafficking organization in Rockford and conspired with his co-defendants, Michael W. Charles, Elbert Charles Dixon, Melvin Bradley, Denise Lambert, Devon Zachary and Jose Melendez, to distribute more than 1 kilogram of heroin. The plea agreement noted that Craig and Melendez pooled their money and traveled together to obtain heroin from their suppliers in Chicago and that Craig then provided the heroin to Charles, Dixon, Zachery and others to distribute in Rockford. The plea agreement further noted that Lambert aided Craig in his heroin trafficking operation by storing Craig’s heroin and heroin trafficking proceeds at her apartment in Rockford. Craig also admitted as part of the plea agreement that he directed Charles and Dixon to distribute heroin to a witness who was secretly cooperating with law enforcement on two occasions in June 2011. Craig was also ordered to repay $2,300 in Abuy@ money used in the undercover operation.
Co-defendants Charles, Dixon, Bradley Lambert, Zachary and Melendez all previously pleaded guilty to conspiring to distribute heroin. On May 28, 2014, Charles was sentenced to 151 months’ imprisonment. On May 23, 2014, Dixon was sentenced to 70 months’ imprisonment. On May 9, 2014, Bradley was sentenced to 18 months’ imprisonment. On May 6, 2014, Zachery was sentenced to 124 months’ imprisonment. On November 13, 2014, Jose Melendez was sentenced to 135 months imprisonment. Lambert is awaiting sentencing and is facing a maximum sentence of 20 years’ imprisonment, in addition to a maximum fine of up to $1 million for her involvement in the conspiracy. The Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, & Explosives; Richard Meyers, Winnebago County Sheriff; Chet Epperson, Chief of the Rockford Police Department; and Hiram Grau, Director of the Illinois State Police.
The government is being represented by Assistant U.S. Attorney Joseph C. Pedersen.
Reward Money Offered for Information Leading to Arrest of Two Fugitives Charged with Multimillion Dollar International Cyber Fraud SchemeRead the Press Release
Earlier today, the U.S. State Department’s Transnational Organized Crime Rewards Program announced the offering of rewards for information leading to the arrest and/or conviction of Romanian fugitive Nicolae Popescu,1 the leader of an international organized crime syndicate that ran a multimillion dollar cyber fraud scheme, and Dumitru Daniel Bosogioiu,2 another Romanian fugitive charged with participating in the scheme. Up to $1 million is being offered for information on Popescu and up to $750,000 for information on Bosogioiu. Interpol has previously issued Red Notices to foreign law enforcement partners seeking assistance in the apprehension of these fugitives, and the FBI has also released “Wanted” posters to facilitate their arrests. Today, the FBI also announced the addition of Nicolae Popescu to the FBI’s Most Wanted Cyber Fugitive List (www.fbi.gov/wanted/cyber).
Defendants Nicolae Popescu and Dumitru Daniel Bosogioiu were originally charged in a criminal complaint with 11 other defendants for their participation in a cyber fraud conspiracy that targeted primarily American consumers on such U.S.-based websites as Cars.com and AutoTrader.com. The charges were brought by the office of Loretta E. Lynch, United States Attorney for the Eastern District of New York. Six of the defendants were arrested in a coordinated international takedown on December 5, 2012, and two other defendants subsequently voluntarily surrendered to the United States to face prosecution,3 but Popescu, Bosogioiu and others have remained at large.
As alleged in the complaint and subsequent indictment, the defendants participated in a long-term conspiracy to saturate Internet marketplace websites including eBay, Cars.com, AutoTrader.com, and CycleTrader.com with detailed advertisements for cars, motorcycles, boats, and other high-value items – generally priced in the $10,000 to $45,000 range – that did not actually exist. The defendants employed co-conspirators who corresponded with the victim buyers by email, sending fraudulent certificates of title and other information designed to lure the victims into parting with their money. The defendants also pretended to sell cars from nonexistent auto dealerships in the United States and created phony websites for these fictitious dealerships. As part of the scheme, the defendants produced and used high-quality fake passports to be used as identification by co-conspirators in the United States to open American bank accounts. After the “sellers” reached an agreement with the victim buyers, they would often email them invoices purporting to be from Amazon Payments, PayPal, or other online payment services, with instructions to transfer the money to the American bank accounts used by the defendants. The defendants and their co-conspirators allegedly used counterfeit service marks in designing the invoices so that they would appear identical to communications from legitimate payment services. The illicit proceeds were then withdrawn from the U.S. bank accounts and sent to the defendants in Europe by wire transfer and other methods.
The complaint and indictment describe the extent to which Popescu, in particular, led the conspiracy. Among other things, Popescu coordinated the roles of the various participants in the scheme – he hired and fired passport makers based on the quality of the fake passports they produced, supervised co-conspirators who were responsible for placing the fraudulent ads and corresponding with the victims, and ensured that the illicit proceeds transferred to the U.S. bank accounts were quickly collected and transferred to himself and others acting on his behalf in Europe. It is estimated that the defendants and their co-conspirators earned over $3 million from the fraudulent scheme.
According to the charging documents, Popescu and his close associate Bosogioiu demonstrated they were aware of the risks of prosecution in the United States. In a recorded conversation on October 23, 2011, Bosogioiu vowed to avoid the FBI. Popescu, meanwhile, predicted on July 28, 2011, “criminals will not be extradited from Romania to U.S.A. . . . [I]t will never happen.”
“As alleged, Popescu and his close associate Bosogioiu engaged in a pattern of pervasive criminal conduct, victimizing hard-working American consumers looking to purchase cars. They believed international borders would allow them to act with impunity. They were wrong. By now, Popescu and Bosogioiu have seen their co-conspirators brought here to account for their crimes. Today’s reward offered by the State Department makes clear that we are determined in our efforts to find these fugitives, no matter where they hide, and bring them to justice for the crimes they have committed against our citizens,” said United States Attorney Lynch. Ms. Lynch expressed her thanks to the U.S. State Department’s Transnational Organized Crime Rewards Program, under which the rewards are being offered.
FBI Assistant Director-in-Charge Venizelos said, “transnational organized crime is rooted in violence and corruption, undermines the integrity of our financial markets and puts the security of our nation at risk. As alleged, while hiding behind international borders, Popescu and Bosogioiu engaged in a systematic cyber fraud scheme targeting primarily American consumers through U.S.-based websites. Working in tandem, they jeopardized the personal security of online users who routinely conducted legitimate business on the internet. The sizeable reward money offered by the Department of State underscores the seriousness of these crimes and our joint commitment to putting these individuals behind bars where they can no longer target innocent victims. This case should serve as a reminder to those who camouflage their criminal acts behind the keyboard while preying upon unsuspecting consumers: we will continue to work with our domestic and international law enforcement partners to disrupt and dismantle criminal enterprises that pose a threat to our citizenry.”
The charges in the complaint and the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The State Department’s Transnational Organized Crime Rewards Program is responsible for offering rewards leading to the arrest and/or conviction of Popescu and Bosogioiu. More information about Popescu and Bosogioiu is available on the Transnational Organized Crime Rewards Program website at www.state.gov/tocrewards. Anyone with information on these individuals should contact the FBI via the Major Case Contact Center at 1-800-CALLFBI (225-5324), contact the nearest U.S. Embassy or Consulate, or submit a tip online at www.tips.gov. All information will be kept strictly confidential.
The offices of the FBI Legal Attachés in Romania, the Czech Republic, the United Kingdom, Canada, and Hungary were instrumental in coordinating efforts with the United States’ international partners, and the U.S. government thanks those partners in Romania, the Czech Republic, Hungary, the United Kingdom, Canada, and Germany for their close cooperation throughout this investigation. The Criminal Division’s Computer Crimes and Intellectual Property Section, Office of International Affairs and Asset Forfeiture and Money Laundering Section, as well as the International Organized Crime Intelligence and Operations Center, Internet Crime Complaint Center, Costa Mesa, Calif., Police Department, Orange County, Calif., District Attorney’s Office, and the New York City Police Department, also provided assistance in the investigation.
The government’s case is being prosecuted by Assistant U.S. Attorneys Nadia Shihata, Melody Wells and Claire Kedeshian of the U.S. Attorney’s Office for the Eastern District of New York.
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1 Popescu is also known as “Nae,” “Nicolae Petrache” and “Nicolae Stoichitoiu.”
2 Bosogioiu is also known as “Dmitru Bosogioiu,” “Dimitru Bosogioiu,” “Dmitru Busogioiu” and “Ioghi.”
3 Of these eight defendants, four have been convicted, three are engaged in criminal proceedings in the United States and one remains engaged in extradition proceedings in Canada.
popescuspanish3 popescuromanian3 bosogioiuspanish3 bosogioiuromanian3 nicolae-popescu dumitru-daniel-bosogioiu
Port Jervis, New York Man Sentenced to 57 Months' Imprisonment for Attempting to Rob A Convenience StoreRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced Jeremiah Anderson, age 32, of Port Jervis, New York, to 57 months’ imprisonment for attempting to rob a convenience store in Milford, Pennsylvania.
According to United States Attorney Peter Smith, Anderson previously pleaded guilty in federal court to entering the Hilltop Sunoco/Extra Mart, in Milford, Pennsylvania on October 5, 2011, wearing a mask, and attempted to rob it without success. Judge Mariani ordered that Anderson be placed on supervised release for two years following the service of his 57-month prison sentence.
The case was investigated by the Federal Bureau of Investigation, the Eastern Pike Regional Police Department, and the Pennsylvania State Police. Assistant United States Attorney John Gurganus prosecuted the case.
Ozark Man Sentenced to 30 Years in Prison for Child Sexual ExploitationRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Ozark, Mo., man was sentenced in federal court today for using two minors to produce child pornography.
Dennis Lee Whitaker, 54, of Ozark, was sentenced by U.S. District Judge Brian C. Wimes to 30 years in federal prison without parole. The court also sentenced Whitaker to a life term of supervision following his release from prison.
On May 21, 2014, Whitaker pleaded guilty to two counts of sexually exploiting a minor in order to produce child pornography. Whitaker admitted that he used two minors, identified as “Jane Doe” and “John Doe,” to produce child pornography between Jan. 1, 2010, and Jan. 1, 2013, in Stone and Taney counties.
Whitaker also faces state charges – two counts of sexual exploitation of a minor child, two counts of child molestation and one count of statutory sodomy – related to the sexual exploitation of these victims.
On Jan. 10, 2013, law enforcement officers executed a search warrant at Whitaker’s residence. They seized three desktop computers, a laptop computer, a webcam and various computer equipment and electronic media storage devices. Investigators found sexually explicit images of the victims on the electronic media.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Stone County, Mo., Sheriff’s Department and the Ozark, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Orlando Man Convicted of Shining Laser at Orange County Sheriff’s Office HelicopterRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that a federal jury has found Joseph Parrott (31, Orlando) guilty of aiming the beam of a laser pointer at an aircraft in the special aircraft jurisdiction of the United States. Parrott faces a maximum penalty of five years in federal prison. His sentencing hearing is scheduled for February 2, 2015. Parrott was indicted on September 3, 2014.
According to testimony presented at trial, at approximately 3:00 a.m. on July 2, 2014, an Orange County Sheriff’s Office helicopter was responding to an attempted burglary in Orlando near East Colonial Drive. While flying to the scene, a bright green light, later determined to be a laser beam, repeatedly illuminated the helicopter’s cockpit. Deputies in the helicopter traced the source of the laser beam to a car on East Colonial Drive. Deputies on the ground pulled the car over. Evidence at trial proved that Parrott, a passenger in the car, knowingly aimed the laser beam at the helicopter at least four times.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Christopher LaForgia and Embry J. Kidd.
Old Orchard Beach Man Sentenced to 9 Years for Pharmacy RobberyRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Billy
Schildroth, 37, of Old Orchard Beach, Maine, was sentenced today in U.S. District Court by
Judge Nancy Torresen to nine years in prison and three years of supervised release for pharmacy robbery. He pled guilty on August 1, 2014.According to court records and evidence introduced at the plea hearing, on February 13, 2014, Kyle Desmarais drove Schildroth to a Rite Aid pharmacy located in Old Orchard Beach so that Schildroth could rob the pharmacy. Schildroth absconded with Oxycontin (oxycodone) and Suboxone (buprenorphine) after putting his hand inside his coat and telling the pharmacist that he had “a gun and five bullets” and not to alert anyone or he would shoot the pharmacist in the face.
In rendering the sentence, Judge Torresen noted the danger Schildroth’s actions posed to both the pharmacist and the community and Schildroth’s criminal history that included a residential burglary and two drug trafficking convictions.
On October 8, 2014, Desmarais was sentenced to 2½ years for aiding and abetting pharmacy robbery.The investigation was conducted by the Federal Bureau of Investigation and the Old
Orchard Beach Police Department.New London Woman Sentenced to 46 Months in Federal Prison for Distributing HeroinRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HEATHER RANGHELLI, also known as “Barbie,” 24, of New London, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 46 months of imprisonment, followed by three years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that Luis Ariel Capellan Maldonado received heroin from a Dominican-based source of supply through New York and then distributed the drug to his own customer base in and around New London.
During the course of the investigation, Cruz “Jay” Bonilla was identified as a heroin and cocaine customer of Luis Ariel Capellan Maldonado and Enrique Luciano. When Bonilla was incarcerated on parole charges with the state, he made arrangements from prison to have RANGHELLI, his girlfriend, take over his heroin distribution activities. RANGHELLI, who used Bonilla’s cell phone to sell heroin to Bonilla’s customers, regularly obtained 10 to 30 grams of heroin, first from Luciano and then directly from Capellan Maldonado.
More than 100 individuals were charged with federal and state offenses as a result of this investigation.
RANGHELLI was arrested on April 4, 2013. On December 13, 2013, she pleaded guilty to one count of conspiracy to possess with the intent to distribute heroin. She has been detained since June 20, 2014, when her bond was revoked.Bonilla, Capellan Maldonado and Luciano all pleaded guilty and are serving prison terms.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal cases are being prosecuted by Assistant U.S. Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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(203) 821-3722 [email protected]Nevada Man Sentenced to 11+ Years After Arrest with 80 Pounds of MethamphetamineRead the Press Release
WICHITA, KAN.- A man from Nevada was sentenced Tuesday to 135 months in federal prison after being stopped in June with 80 pounds of methamphetamine, U.S. Attorney Barry Grissom said.
Grissom commended the Kansas Highway Patrol and Assistant U.S. Attorney Aaron Smith for their work on the case.
Tomas Serrato-Jaimes, 31, Las Vegas, Nev., pleaded guilty to one count of possession with intent to distribute methamphetamine. In his plea, he admitted the Kansas Highway Patrol stopped his car June 20, 2014, on Interstate 70 near Hays, Kan. Investigators found 80 pounds of methamphetamine and 11 pounds of cocaine in the car.Miami-Area Hospital Chief Operating Officer Pleads Guilty in $67 Million Mental Health Care Fraud SchemeRead the Press Release
The former chief operating officer of a Miami-area hospital pleaded guilty today for his role in a mental health care fraud scheme that resulted in the submission of more than $67 million in fraudulent claims to Medicare by a state-licensed psychiatric hospital located in Hollywood, Florida, that purported to offer both inpatient and outpatient mental health services.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Christopher Gabel, 61, of Davie, Florida, the former Chief Operating Officer (COO) of Hollywood Pavilion LLC (HP), pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay and receive health care kickbacks. Gabel was charged in an indictment returned on May 8, 2014.
According to Gabel’s admissions in connection with his guilty plea, between April 2003 and September 2012, HP submitted false and fraudulent claims to Medicare for treatment that was not medically necessary or not provided to patients. As COO during that time, Gabel supervised HP’s staff at both its inpatient and outpatient facilities, where Medicare beneficiaries were admitted to HP regardless of whether they qualified for mental health treatment, and were often admitted before seeing a doctor.
Gabel admitted that HP obtained Medicare beneficiaries from across the country by paying bribes and kickbacks to various patient brokers. Gabel instructed the patient brokers to falsify invoices and marketing reports in an effort to hide, and cover up the true nature of the bribes and kickbacks they were receiving from HP. From 2003 through August 2012, HP billed Medicare approximately $67 million for services that were not properly rendered, for patients that did not qualify for the services being billed, and for claims for patients who were procured through bribes and kickbacks. Medicare reimbursed HP nearly $40 million for those claims.
Karen Kallen-Zury, Daisy Miller, Michele Petrie and Christian Coloma were convicted at trial in June 2013 for their roles in this scheme. Kallen-Zury, HP’s former chief executive officer, was sentenced to 25 years in prison. Miller, the clinical director of HP’s inpatient facility, was sentenced to 15 years in prison; and Petrie, the head of HP’s intensive outpatient program, was sentenced to six years in prison. Coloma, the director of physical therapy for an entity associated with HP, was sentenced to 12 years in prison. Kallen-Zury, Miller and Petrie were ordered to pay nearly $40 million in restitution, and Coloma was ordered to pay more than $20 million in restitution.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Trial Attorneys Nicholas E. Surmacz, Andrew H. Warren and L. Rush Atkinson of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Miami-Area Hospital Chief Operating Officer Pleads Guilty in $67 Million Mental Health Care Fraud SchemeRead the Press Release
The former chief operating officer of a Miami-area hospital pleaded guilty today for his role in a mental health care fraud scheme that resulted in the submission of more than $67 million in fraudulent claims to Medicare by a state-licensed psychiatric hospital located in Hollywood, Florida, that purported to offer both inpatient and outpatient mental health services.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Derrick Jackson of the U.S. Health and Human Services Office of Inspector General’s (HHS-OIG) Florida region made the announcement.
Christopher Gabel, 61, of Davie, Florida, the former Chief Operating Officer (COO) of Hollywood Pavilion LLC (HP), pleaded guilty before U.S. District Judge Cecilia M. Altonaga in the Southern District of Florida to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States and pay and receive health care kickbacks. Gabel was charged in an indictment returned on May 8, 2014.
According to Gabel’s admissions in connection with his guilty plea, between April 2003 and September 2012, HP submitted false and fraudulent claims to Medicare for treatment that was not medically necessary or not provided to patients. As COO during that time, Gabel supervised HP’s staff at both its inpatient and outpatient facilities, where Medicare beneficiaries were admitted to HP regardless of whether they qualified for mental health treatment, and were often admitted before seeing a doctor.
Gabel admitted that HP obtained Medicare beneficiaries from across the country by paying bribes and kickbacks to various patient brokers. Gabel instructed the patient brokers to falsify invoices and marketing reports in an effort to hide, and cover up the true nature of the bribes and kickbacks they were receiving from HP. From 2003 through August 2012, HP billed Medicare approximately $67 million for services that were not properly rendered, for patients that did not qualify for the services being billed, and for claims for patients who were procured through bribes and kickbacks. Medicare reimbursed HP nearly $40 million for those claims.
Karen Kallen-Zury, Daisy Miller, Michele Petrie and Christian Coloma were convicted at trial in June 2013 for their roles in this scheme. Kallen-Zury, HP’s former chief executive officer, was sentenced to 25 years in prison. Miller, the clinical director of HP’s inpatient facility, was sentenced to 15 years in prison; and Petrie, the head of HP’s intensive outpatient program, was sentenced to six years in prison. Coloma, the director of physical therapy for an entity associated with HP, was sentenced to 12 years in prison. Kallen-Zury, Miller and Petrie were ordered to pay nearly $40 million in restitution, and Coloma was ordered to pay more than $20 million in restitution.
The case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Trial Attorneys Nicholas E. Surmacz, Andrew H. Warren and L. Rush Atkinson of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
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.
Manhattan U.S. Attorney Announces Charges Against Kentucky Resident for Maintaining Secret Swiss Bank AccountsRead the Press Release
U.S. Attorney Preet Bharara for the Southern District of New York and Acting Special Agent in Charge Shantelle P. Kitchen of the Internal Revenue Service-Criminal Investigation (IRS-CI) New York Field Office announced today the unsealing of an indictment against Peter Canale, a U.S. citizen and resident of Kentucky, for conspiring to defraud the IRS and evade taxes by establishing and maintaining secret, undeclared bank accounts in Switzerland. Canale was arrested this morning at his residence in Jamestown, Kentucky, and is expected to be presented later today in the U.S. District Court for the Eastern District of Kentucky. Canale is scheduled to be arraigned before U.S District Judge Katherine B. Forrest in Manhattan federal court on Dec. 3, 2014, at 3:00 p.m.
According to the allegations in the indictment unsealed today in Manhattan federal court:
Canale conspired with others – including Michael Canale, his brother, Beda Singenberger, a Swiss citizen who ran a financial advisory firm, and Hans Thomann, a Swiss citizen who served as a client adviser at UBS and certain Swiss asset management firms – to establish and maintain undeclared bank accounts in Switzerland and to hide those accounts from the IRS. Canale used a sham entity to conceal from the IRS his ownership of the undeclared accounts and deliberately failed to report the accounts and the income generated in the accounts to the IRS.
In approximately 2000, a relative of Canale’s who held an undeclared bank account in Switzerland died and left a substantial portion of the assets in the undeclared account to Canale and Michael Canale. Canale and his brother met with Thomann and Singenberger and determined they would continue to maintain the assets in the undeclared account for the benefit of Canale and his brother.
Thereafter, in approximately 2005, Canale, with Singenberger’s assistance, opened an undeclared account at the Swiss bank Wegelin. The account was opened in the name of a sham foundation formed under the laws of Lichtenstein to conceal Canale’s ownership. As of Dec. 31, 2009, the account held assets valued at approximately $789,000.
For each of the calendar years from 2007 through 2010, Canale willfully failed to report on his tax returns his interest in the undeclared accounts and the income generated in those accounts. For each of these years, Canale also failed to file a Report of Foreign Bank and Financial Accounts (FBAR) with the IRS, as the law required him to do.
Canale, 61, is charged with one count of conspiracy to defraud the United States, evade taxes, and file a false and fraudulent income tax return, which carries a statutory maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
U.S. Attorney Bharara praised the outstanding investigative work of IRS-CI and also thanked the U.S. Department of Justice’s Tax Division for their assistance.
The case is being prosecuted by the U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jason Cowley and Sarah Paul and Special Assistant U.S. Attorney Jorge Almonte of the Tax Division are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Manhattan U.S. Attorney Announces Charges Against Kentucky Resident for Maintaining Secret Swiss Bank AccountsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations Division (“IRS-CI”), announced today the unsealing of an Indictment against PETER CANALE, a U.S. Citizen and resident of Kentucky, for conspiring to defraud the IRS and evade taxes by establishing and maintaining secret, undeclared bank accounts in Switzerland. CANALE was arrested this morning at his residence in Jamestown, Kentucky, and is expected to be presented later today in the United States District Court for the Eastern District of Kentucky. CANALE is scheduled to be arraigned before U.S District Judge Katherine B. Forrest in Manhattan federal court on December 3, 2014, at 3:00 p.m.
According to the allegations in the Indictment unsealed today in Manhattan federal court:
CANALE conspired with others – including his brother Michael Canale, Beda Singenberger, a Swiss citizen who ran a financial advisory firm, and Hans Thomann, a Swiss citizen who served as a client adviser at UBS and certain Swiss asset management firms – to establish and maintain undeclared bank accounts in Switzerland, and to hide those accounts from the IRS. CANALE used a sham entity to conceal from the IRS his ownership of the undeclared accounts, and deliberately failed to report the accounts and the income generated in the accounts to the IRS.
In approximately 2000, a relative of CANALE’s who held an undeclared bank account in Switzerland died and left a substantial portion of the assets in the undeclared account to CANALE and Michael Canale. CANALE and his brother met with Thomann and Singenberger and determined they would continue to maintain the assets in the undeclared account for the benefit of CANALE and his brother.
Thereafter, in approximately 2005, CANALE, with Singenberger’s assistance, opened an undeclared account at the Swiss bank Wegelin. The account was opened in the name of a sham foundation formed under the laws of Lichtenstein to conceal CANALE’s ownership. As of December 31, 2009, the account held assets valued at approximately $789,000.
For each of the calendar years from 2007 through 2010, CANALE willfully failed to report on his tax returns his interest in the undeclared accounts and the income generated in those accounts. For each of these years, CANALE also failed to file with the IRS a Report of Foreign Bank and Financial Accounts, or FBAR, as the law required him to do.
CANALE, 61, of Jamestown, Kentucky, is charged with one count of conspiracy to defraud the United States, evade taxes, and file a false and fraudulent income tax return, which carries a maximum sentence of five years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of IRS-CI. Mr. Bharara also thanked the U.S. Department of Justice’s Tax Division for their assistance.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Jason Cowley and Sarah Paul and Special Assistant United States Attorney Jorge Almonte of the DOJ’s Tax Division are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
US v Peter Canale Indictment
Manhattan U.S. Attorney Announces Charges Against Inside Man Arrested in Connection with Daytime Armed Robbery of Diamond District StoreRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, James Higgins, Acting Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and William J. Bratton, Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a complaint charging RONDU FRISBY, a/k/a “Reef,” for his role in an armed robbery of a store in the Diamond District of Manhattan on November 11, 2014. FRISBY was arrested yesterday and was presented today in Manhattan federal court before the Honorable Ronald L. Ellis and detained on consent.
Manhattan U.S. Attorney Preet Bharara said: “Thanks to the dogged detective work of the NYPD and the ATF, and the determined efforts of career prosecutors in my Office's Violent and Organized Crime Unit, one of the people allegedly responsible for a brazen armed robbery is in custody. As alleged, the defendant and his accomplices used deceit to gain entry to a Diamond District jewelry store in broad daylight last week, but once inside, the tactics turned violent. With the arrest of Rondu Frisby we are closer to apprehending the other two men willing to use a pistol for profit.”
ATF Acting Special Agent in Charge James Higgins said: “I am extremely gratified that the investigators involved have swiftly apprehended and arrested at least one of the perpetrators in this investigation. This arrest stems from the investigative efforts of the newly formed ATF/NYPD robbery task force. Yesterday's arrest demonstrates the effectiveness of combining federal and local law enforcement resources and expertise in targeting violent offenders.”
Police Commissioner William J. Bratton said: “Through coordinated efforts with our law enforcement partners, Rondu Frisby’s role was quickly uncovered, and he was tracked down and charged. We will continue to pursue the remaining fugitives until they too are brought to justice.”
According to the Complaint unsealed today in Manhattan federal court, it is alleged that:
On November 11, 2014, two men carried out an armed commercial robbery of a jewelry store (the “Store”) on the 8th Floor of a building on 47th Street in the Diamond District of Manhattan. The Store is not open to the public but is a space where clients can view and purchase jewelry. RONDU FRISBY, the defendant, is a friend of the owner of the store (the “Owner”). FRISBY arrived at the Store moments before the robbery after having told the Owner that he was going to come by to help a friend pick out jewelry for the friend’s girlfriend. Just after FRISBY arrived, at approximately 2:20 in the afternoon – in broad daylight as the Veteran’s Day Parade proceeded nearby – one man (“Perpetrator-1”), dressed in a suit, carrying a bag, and appearing to be a messenger, came to the door of the store, while a second man (“Perpetrator-2”) served as a lookout in the hallway. FRISBY let Perpetrator-1 into the Store. After entering, Perpetrator-1 first said that he was there to serve the Owner of the Store with papers, and took two envelopes out of his bag before placing them on a desk. Perpetrator-1 then took out a black semiautomatic gun and pointed it at the Owner, FRISBY, and two others present and demanded that they give him all the jewelry in the Store. FRISBY and the others emptied more than $600,000 worth of jewelry from a safe and other locations and placed it into Perpetrator-1’s bag, before he and Perpetrator-2 left the scene. FRISBY, among others, was interviewed after the robbery and provided an account of what happened but did not state that he knew Perpetrator-1 or Perpetrator-2.
Perpetrator-1 was identified based on fingerprint analysis of the envelopes left in the store, and a cellphone number for Perpetrator-1 was then obtained. Cellphone analysis shows 25 phone communications between FRISBY and Perpetrator-1 on the day of the robbery, both before and after the robbery but not during it. In addition, surveillance footage from 47th Street just before the robbery shows FRISBY walking toward the Store, with Perpetrator-1 20 feet behind him, and Perpetrator-2 30 feet behind FRISBY. In particular, at 2:14 p.m., both FRISBY and Perpetrator-1 can be seen talking on their phones. Cellphone records show a call between FRISBY and Perpetrator-1 at that time.
A search of FRISBY’s apartment pursuant to a search warrant uncovered in excess of $100,000 in cash.
FRISBY, 37 of New York, New York, is charged with one count of conspiracy to commit robbery, which carries a maximum sentence of 20 years in prison, and one count of aiding and abetting the brandishing of a firearm in connection with the robbery conspiracy, which carries a maximum sentence of life in prison, with a seven-year mandatory minimum sentence. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the investigative work of the NYPD and the Joint Robbery Task Force, consisting of members of the NYPD, ATF, and the United States Marshals Service.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorney Russell Capone is in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
US v. Rondu Frisby Complaint
Manhattan U.S. Attorney and FBI Assistant Director Announce Charges and Arrests in Multimillion-Dollar Debt Collection Scam That Targeted More Than 6,000 Victims in All 50 StatesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging WILLIAMS, SCOTT & ASSOCIATES (“WSA”), a debt collection company based in Norcross, Georgia, its owner JOHN TODD WILLIAMS, and six of its employees – BENITA CANNEDY, RUDY JAMES, ARTHUR COOK, CHRISTOPHER LENYSZYN, CLARK SMITH, and TITUS MCDOWELL – with conspiracy to commit wire fraud in connection with a nationwide debt collection scheme that targeted more than 6,000 victims throughout the United States. As alleged, the defendants contacted consumers whose debt WSA had purchased, and tried to trick and coerce them into making payments to WSA by making false threats and telling a host of lies. Among those lies were that WSA was part of a federal task force and that warrants would be issued for the consumers’ arrests if they failed to make immediate payment to WSA. In total, WSA obtained more than $4.1 million from its victims. Each of the individual defendants was arrested this morning in Georgia and will be presented later today in federal court in Atlanta.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, the defendants –third-party debt collectors acting under the guise of government authority– illegally and repeatedly threatened arrest, prosecution, and prison for countless Americans. Now, after years of threatening false arrest, these defendants are the ones who now find themselves in handcuffs, facing the loss of their own liberty. We are far from finished looking at the seedy side of debt collection. It affects too many people.”
FBI Assistant Director-in-Charge Venizelos said: “As alleged, this was nothing but a scam of total fabrication in order to coerce thousands into paying debts. This scheme took advantage of our poorest and most vulnerable citizens from all fifty states, including right here in New York City. The defendants were nothing more than bullies with bogus badges.”
According to the allegations contained in the Complaint unsealed today in Manhattan federal court:
Between approximately 2009 and May 2014, employees working for WSA routinely attempted to trick and coerce thousands of victims throughout the United States into paying millions of dollars in consumer debts through a variety of false statements and false threats. Employees of WSA typically used aliases, sometimes referring to themselves as “Detective” or “Investigator,” falsely advised consumers they had committed purported crimes such as “check fraud” or “depository check fraud,” and told consumers that if they failed to make an immediate payment to WSA to resolve the matter, a warrant would be issued for their arrest. WSA employees also falsely claimed that WSA had contracts with, or was otherwise affiliated with, certain federal or local law enforcement agencies, including the Department of Justice and the United States Marshals Service, as well as non-existent government agencies such as the “Federal Government Task Force” and the “DOJ Task Force.” To further create the appearance that it was affiliated with the federal government, WSA at times sent victims correspondence containing the seal of the United States Department of State and the following language: “Warrant Services Association, A Division of the Federal Government Task Force.”
When victims expressed doubt or sought more information, WSA employees intensified the pressure and created a heightened sense of urgency by imposing false deadlines. In one case, for example, a WSA employee told a victim he/she had 15 minutes to decide whether to make payment to WSA, and that if the victim elected not to, an arrest warrant would be issued for the victim’s spouse. In another instance, a defendant told a victim who advised that she was eight-months pregnant that she had two hours to pay WSA, or else the case would be forwarded to Los Angeles County and a warrant would be issued for her arrest.
Among other false statements, WSA employees claimed that WSA was a law firm, and that they would have the victims’ driver’s licenses suspended if those victims did not make payment to WSA. To falsely create an appearance of legitimacy, and further trick their victims into making payments, WSA employees routinely used legal terminology to invent legitimate-sounding, but completely bogus, explanations for the supposed imminent arrest of the victims, including for example, that the “statute of limitations” on the victims’ “civil legal rights” had expired and therefore the matter was now a criminal matter that could be resolved only by voluntary payment to WSA, or arrest. To frighten their victims, WSA employees warned that the arrest could take place at any time and any place, including at their homes and places of work.
In total, from approximately 2009 through approximately April 2014, WSA obtained more than $4.1 million dollars from over 6,000 victims in all 50 states.
After the FBI conducted a search of WSA’s office in Norcross, Georgia in May 2014, WILLIAMS shut down WSA and opened a new debt collection business. Based on victim complaints, employees of that debt collection business have been making the same threats and false statements to victims.
Scripts Recovered From the WSA Office
When FBI agents searched the WSA Office in May 2014, they recovered, among other things, scripts for calls with victims that contained numerous misrepresentations, including false threats of criminal charges and arrests, and false associations with the government. For example, the scripts included the following language:
“Who are we? We are a government task force set up to investigate and collect info on individuals involved in Depository Account Fraud and theft by deception.”
“This is investigator _____ I calling [sic] in reference to a complaint that has been filed through the national check fraud center were [sic] that stated that they have sent correspondents [sic] to ________ as well _______ and you have not responsed [sic] which has made your statue [sic] of limitations for your civil legal rights exhaust. That means that you are being pursued for one count of theft by deception and can be forwarded over to the local county for proceedings to start.”
“This message is for _______. My name is _______ from the investigation services of WSA. Currently there is a criminal complaint pending against you for theft of services. We are going ahead with legal proceedings today therefore we do need to speak with you immediately. Contact our office as soon as possible at [a particular telephone number] Ext ____. Thank you. Failure to respond will lead to criminal charges persude [sic] against you being forwarded over to your county.”
Recorded Calls Between The Defendants and Their Victims
During the search of WSA’s office, FBI agents also recovered computers containing recordings of thousands of calls between WSA employees and victims. Those recorded calls included the following:
- A call in which CANNEDY identified herself as “Chief Investigator Sharon Wright” and stated that she was investigating a criminal complaint against the victim for a payday loan the victim had taken out. When the victim told CANNEDY she was not currently working, CANNEDY responded that she had no choice but to forward the case to Los Angeles County and that Los Angeles County would issue a warrant for her arrest for “depository check fraud” and “theft by deception.” When the victim asked for customer service, CANNEDY responded: “Customer service? Ma’am you’re on the way to jail.” Later, the victim asked to see information to ensure that everything was legitimate, and CANNEDY responded, “Don’t take care of it, and you’ll see just how legit it is.” The victim said that she wanted to take care of the debt, was eight months pregnant, and did not want to go to jail. CANNEDY then responded, “I’m not going to go back and forth. I wouldn’t care if you were nine months pregnant. I have a job to do here.” CANNEDY told the victim she had two hours to pay WSA, and after that, the case would be forwarded to Los Angeles County for the issuance of an arrest warrant.
- A call in which JAMES told a victim he had an outstanding “restitution” of over $2,000, and when the victim said he had already paid it with a credit card, JAMES claimed the victim still had to pay WSA because “when you file for an ADR, you can’t use a debt instrument to pay a debt.” The victim said he did not have enough money to pay immediately and asked for documentation of the debt since he believed he had paid it already. JAMES told the victim that sending documentation would not stop the warrant from being processed. JAMES said that once he hung up the phone, he would put the case into “refusal status” and that the victim should have his attorney contact the office to set up an arraignment.
- A call in which COOK told a victim that her husband was being pursued for a “theft by receiving” charge to be forwarded to the local county and processed for a warrant. COOK advised that if her husband was “detained by county sheriffs, he would have to sit in reformatory” until he was tried.
- A call in which LENYSZYN told a victim that he was an investigator for “WSA” and was investigating “theft of services.” LENYSZYN explained that “what we do is we issue warrants and we do the suspension of driver’s license over here.” When the victim asked whether a warrant would be issued if he could only pay half the money, LENYSZYN said it could be a suspension of the victim’s driver’s license or a warrant and that “you don’t want any surprises either at the house or work, especially when it comes to that, your business your family and all that.
WILLIAMS, 48, of Norcross, Georgia, CANNEDY, 36, of Duluth, Georgia, JAMES, 32, of Lithonia, Georgia, COOK, 31, of Duluth, Georgia, LENYSZYN, 46, of Acworth, Georgia, SMITH, 39, of Norcross, Georgia, and MCDOWELL, 38, of Avondale Estates, Georgia, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI. He also thanked the Consumer Financial Protection Bureau (“CFPB”) for referring this case to this Office, and the Federal Trade Commission (“FTC”) for its assistance in this investigation. The FTC separately filed earlier this year a complaint against WSA and WILLIAMS. Mr. Bharara also acknowledged with appreciation the extraordinary partnership between this Office and both the FTC and CFPB in the Office’s ongoing effort to combat consumer fraud.
If you believe you were a victim of this crime, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact the Victim/Witness Unit at the United States Attorney’s Office for the Southern District of New York, at (866) 874-8900. For additional information, go to:
http://www.usdoj.gov/usao/nys/victimwitness.html.
If you wish to report a crime by another debt collector, you may contact the FTC at 1-877-FTC-HELP. For guidance on coping with debt, and information about dealing with debt collection companies in particular, consider the following link to publications issued by the Federal Trade Commission:
http://www.consumer.ftc.gov/articles/0149-debt-collection.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Asset Forfeiture Unit. Assistant United States Attorneys Daniel Tehrani and Jennifer Gachiri are in charge of the prosecution, and Assistant United States Attorney Jonathan Cohen is in charge of the forfeiture aspects of the case.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. WSA, et al Complaint
Leader of A Long Island Chapter of the Ñetas Gang Sentenced to 37 Years’ Imprisonment in Connection with the Murders of Two 17-Year-Old Rival Gang MembersRead the Press Release
Earlier today, the leader of a Long Island chapter of the Ñetas street gang, Jason Cabral, also known as “J-Live,” was sentenced to a term of imprisonment of 37 years to be followed by five years of supervised release as a result of his guilty plea to the 2004 murders of Anthony Marcano and Fabian Mestres. The sentence was imposed in federal court in Central Islip, New York, by United States Senior District Judge Joanna Seybert.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“Ten years ago Jason Cabral ordered the robbery and murder of two 17-year-old young men. His minions carried out that order, binding the victims, wiping their bodies of forensic evidence, stuffing them into the trunk of car and driving them to their executions,” stated United States Attorney Lynch. “For eight years Cabral thought he had outsmarted law enforcement and gotten away with murder. From one slender lead, and with the tenacity of the FBI and NYPD, these horrific murders were solved and the killers brought to justice. We hope today’s proceedings bring some measure of relief to the victims’ families.” Ms. Lynch expressed her grateful appreciation to the Tampa Division of the FBI and United States Attorney’s Office, Middle District of Florida, for their cooperation and assistance in the investigation.
Police Commissioner William J. Bratton said, “This investigation illustrates the unwavering commitment of the law enforcement community who swore to protect and serve the people of this city from criminals like Jason Cabral. This common goal shared between the NYPD, FBI and the Department of Justice was the reason this criminal is now held accountable for these appalling murders. We hope that this sentence will bring some consolation to the victims’ families.”
As detailed during the plea proceeding and other court filings, Cabral targeted one of the victims, Anthony Marcano, because of his affiliation with a rival gang, the Latin Kings. On August 10, 2004, Cabral ordered his fellow gang members to rob and kill 17-year-old Marcano. As part of the plan, the defendant and his co-conspirators lured Marcano to a house in Brentwood. Marcano arrived at that house with 17-year-old Fabian Mestres, a fellow “Pee Wee” member of the Latin Kings street gang. Once inside the house, the victims were restrained with duct tape and their drugs, money and jewelry were stolen. The two victims were stuffed into the trunk of a car and driven to a warehouse in Queens where one of the defendant’s co-conspirators shot them with a shotgun. Mestres was shot once in the head, and Marcano was shot once in the head and once in the back of the neck. Marcano’s and Mestres’s dead bodies were found behind a warehouse in Queens the following day.
The government’s case was prosecuted by Assistant United States Attorneys Nicole Boeckmann and Christopher C. Caffarone.
The Defendant:
JASON CABRAL
Age: 37
Riverview, Florida
Las Cruces Man Pleads Guilty to Federal Methamphetamine Trafficking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Armando Conrad Gonzales, 33, of Las Cruces, N.M., pleaded guilty this morning in federal court in Las Cruces to drug trafficking and firearms charges. Under the terms of his plea agreement, Gonzales will be sentenced to 100 months in federal prison followed by a term of supervised release to be determined by the court.
Gonzales was charged in July 2014, with two co-defendants who previously had been arrested. Charles Douglas Notbohm, Jr., 50, of Tucson, Ariz., 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 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 Gonzales 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, Gonzales pled guilty to Counts 1 and 3 of the superseding indictment, charging him with a methamphetamine distribution conspiracy and being a felon in possession of a firearm. In entering his guilty plea, Gonzales admitted making an agreement with Reeves to purchase four ounces of methamphetamine from Reeves which Reeves and Notbohm were to transport from Tucson to Las Cruces. Gonzales further admitted that on April 11, 2014, he possessed a firearm and ammunition even though he was prohibited from doing so based on his status as a convicted felon.
On Sept. 18, 2014, Reeves pled guilty to the two methamphetamine trafficking charges in the superseding indictment without the benefit of a plea agreement. At sentencing, Reeves faces a sentence of not less than five years and not more than 40 years in prison.
Notbohm pled guilty on Oct. 7, 2014, 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 Gonzales. 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. At sentencing, he faces a prison sentence of not more than twenty years.
All three men have been in federal custody since their respective arrests. They remain detained pending their respective sentencing hearings, which have yet to be scheduled.
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.
KCK Man Sentenced to 27 Years in Prison for Drug-trafficking Conspiracy, Fatal Shooting of Independence ManRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was sentenced in federal court today for his role in a drug-trafficking conspiracy that resulted in the shooting deaths of three persons during a home invasion in Independence, Mo., and the shooting of a 12-year-old boy in the home.
Victims of the fatal shootings were Maria Hernandez, her son, Antonio Hernandez, and her boyfriend, Martin “Tomas” Dominguez-Gregorio. Maria Hernandez’s then-12–year-old son, Miguel Hernandez, was wounded in the shooting.
Raul Soto, also known as “Choch,” 23, of Kansas City, Kan., was sentenced by U.S. District Judge Beth Phillips to 27 years in federal prison without parole.
On July 29, 2014, Soto pleaded guilty to one count of participating in a conspiracy to possess 50 grams or more of methamphetamine with the intent to distribute, and one count of using a firearm during the drug-trafficking conspiracy, resulting in the death of Antonio Hernandez.
Soto admitted that he and several co-conspirators planned to rob Dominguez-Gregorio of as much as three pounds of methamphetamine. They traveled to his apartment in Independence in the early morning hours of Nov. 16, 2012. Soto carried a 9mm pistol. He and a co-conspirator entered a shed behind the house and bound and beat two occupants inside the shed, one of whom was Antonio Hernandez. They dragged Antonio Hernandez into the main house. They demanded drugs and money from the occupants, but the victims denied having any drugs or money.
Soto admitted that he shot and killed Antonio Hernandez. Soto also admitted that conspirators removed a motorcycle and a TV from the apartment.
Nine of Soto’s co-defendants have pleaded guilty: Antonio Cervantes, III, also known as “Taz,” 24, and Bobbi Jo Phillips, 39, both of Independence; Carlos Zambrano, Jr., also known as “Los,” 39, Amber R. Hart, 28, Martin Medrano, 24, and Paula K. Deardorff, 33, all of Kansas City, Mo.; Clayton J. Deardorff, 36, of Columbia, Mo., and Ryan J. Clayton, 32, and Stephanie K. Allinder, 21, addresses unknown.
This case is being prosecuted by Assistant U.S. Attorneys Charles E. Ambrose and Patrick C. Edwards. It was investigated by the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kansas City, Mo., Police Department.KC Man Sentenced to Life in Prison for Heroin Trafficking, Resulting in DeathRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a Kansas City, Mo., man was sentenced in federal court today for his roles in a 10-year long drug-trafficking conspiracy that resulted in the death of one individual and the distribution of more than three kilograms of heroin in the Kansas City area.
Timothy L. Kirlin, also known as “Jim Curlon,” 34, was sentenced by U.S. District Judge Gary A. Fenner to life in federal prison without parole. The court also ordered Kirlin to pay $17,000 in restitution for funeral costs.
On April 1, 2014, Kirlin and co-defendant Matthew Davis, 48, of Kansas City, Mo., were each found guilty at trial of participating in a conspiracy to distribute 1,000 grams or more of heroin, as well as cocaine, from Jan. 1, 2002, to Feb. 3, 2012. Kirlin traveled to Dallas, Texas, to procure wholesale amounts of heroin and other drugs for resale in the Kansas City area. Davis was among the conspirators who received heroin and cocaine from Kirlin and distributed it to others.
On March 5, 2002, Kirlin distributed heroin to Joshua Webb, and the use of this heroin by Webb resulted in his death.
Kirlin traveled to Dallas at least once a month to purchase heroin. The usual amount that Kirlin would purchase in Dallas was four ounces of heroin, although he bought more on occasion. He sometimes transported the heroin back to Kansas City by hiding it in his rectum.
Co-defendant Patrick Holmes, 34, of Dallas, was Kirlin’s source for six years. Holmes, who was sentenced to seven years in federal prison for his role in the conspiracy, admitted that Kirlin purchased more than three kilograms of cocaine from him for resale in the Kansas City area during the time he was involved in the conspiracy.
Because Kirlin had been shot in the head, he was unable to drive himself, and would ride the bus to Texas and frequently enlist the aid of others in the conspiracy to drive him from place to place.
In addition to the conspiracy, Kirlin was found guilty of being a felon in possession of explosives. Kirlin, who has two prior felony convictions for possession of a controlled substance, was in possession of four sticks of explosives (along with manuals on how to build explosive devices) on Feb. 2, 2012.
Kirlin was also convicted of six counts of distributing heroin and one count of possessing heroin with the intent to distribute. Kirlin must also forfeit to the government $200,000, which represents the proceeds of his illegal drug trafficking, and $1,425 that was seized by law enforcement officers.
Davis’s sentencing hearing began today and was continued to Monday, Nov. 24, 2014. Nine co-defendants have pleaded guilty and been sentenced.
This case is being prosecuted by Assistant U.S. Attorneys Charles E. Ambrose, Jr., and Patrick Edwards. It was investigated by the Kansas City, Mo., Police Department.KC Man Sentenced for Stealing $330,000 from ATMsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for stealing more than $330,000 from automated teller machines (ATMs) that he was hired to maintain.
Anthony T. Civella, Jr., 47, of Kansas City, was sentenced by U.S. District Judge Gary A. Fenner to two years in federal prison without parole. The court also ordered Civella to pay $70,000 in restitution, in addition to the restitution that has already been paid.
On Feb. 27, 2014, Civella pleaded guilty to bank larceny and money laundering.
From 2011 through 2013, Civella owned and operated a company called C Management Group, LLC, which serviced 35 ATMs in the Kansas City, Mo., metropolitan area. The money in the ATMs belonged to U.S. Bank. Civella stole $330,040 from the ATMs by obtaining a maintenance code to access the machines. Civella moved money between the ATM machines in order to conceal the theft.
Civella comingled the stolen money from the ATMs by depositing most of the cash into his personal checking account at the Holy Rosary Credit Union. Civella admitted that he deposited money from the bank larceny scheme into his personal checking account in order to conceal or disguise the location and source of the proceeds of the bank larceny.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI, IRS-Criminal Investigation and the Kansas City, Mo., Police Department.Jury Convicts 64-Year-Old Las Vegas Man of Interstate Transportation of A Minor for Unlawful Sexual ActivityRead the Press Release
SACRAMENTO, Calif. — A federal jury returned a guilty verdict today, finding Donald J. Peel, 64, of Las Vegas, Nevada, guilty of transportation of a minor with the intent to engage in unlawful sexual activity, United States Attorney Benjamin B. Wagner announced.
According to court documents and evidence presented during the five-day trial, Peel initiated a sexual relationship with a 16-year-old girl in Las Vegas in late 2013. In February 2014, he took her on a trip lasting almost a month, through five states, including Nevada, Arizona, California, Oregon, and Washington. Peel had sex with the minor in each of the five states. The trip ended with Peel’s arrest in Weed, California on March 19, 2014. The minor was still accompanying him.
Evidence at trial showed that Peel targeted the teenager, who had a developmental disability and a drug problem. During the five-state trip he provided her with drugs, including heroin, methamphetamine (which he administered intravenously), and marijuana. He engaged in sexual activity with the teenager nearly every day of the trip. Also presented during the trial was evidence that Peel attempted to keep his girlfriend in Las Vegas from testifying at trial, though she ultimately testified.
This case is the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, the Weed Police Department, Siskiyou Juvenile Probation Department, and the Franklin County Sheriff’s Office in Washington. Assistant United States Attorneys Michael M. Beckwith, Sherry D. Haus, and Matthew D. Morris are prosecuting the case.
Peel is scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on February 6, 2015. Peel faces a sentence of at least 10 years, and up to life in prison, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
- Importing Methamphetamine on Independence Day Leads to 10 Years in Federal Prison
Hubbard, Iowa, Woman Sent to Prison for Bank FraudRead the Press Release
A woman who forged a court order in support of her request for a bank loan and a separate letter purporting to be from a United States Department of Justice official was sentenced on November17, 2014, to nearly four years in federal prison.
Stephanie Drake (formerly known as Stephanie Drake-Zierke), age 51, from Hubbard, Iowa, received the prison term after a July 23, 2014 guilty plea to one count of bank fraud and one count of unlawful manufacture and possession of a United States Department of Justice seal.
In a plea agreement, Drake admitted that, between about March 2009 and September 2012, she fraudulently induced a bank to loan her money by falsely claiming that her husband had been awarded a legal settlement in the amount of $2,200,000. Drake also admitted presenting a fabricated document to the bank purporting to be a court order for the legal settlement. Drake also admitted defrauding the same bank by presenting falsified loan paperwork indicating her husband’s parents had agreed to guarantee a loan of up to $162,600. Drake admitted that, between May 2008 and September 2012, the bank loaned her a total of at least $483,513.51. Drake admitted her conduct resulted in a loss to the bank of more than $400,000.
Drake was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Drake was sentenced to 41 months’ imprisonment on the bank fraud count and an additional, consecutive term of six months imprisonment on the count of unlawful manufacture and possession of a United States Department of Justice seal. The total term of imprisonment imposed was 47 months. A special assessment of $110 was imposed, and she was ordered to make $708,217.95 in restitution to the defrauded bank and other victims. Drake must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Drake was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Peter Deegan and was investigated by the Federal Bureau of Investigation and the Hardin County, Iowa, Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-2032.
- Houston Woman Heads to Prison for Threatening President Obama
Honduran Citizen Apprehended in York County Charged with Improper EntryRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO) announced today that a 28-year-old native and citizen of Honduras has been charged with improper entry into the United States.
According to United States Attorney Peter Smith, Orbin Izaguirre-Galvez, age 28, was charged in a one-count information filed with the Court in Harrisburg today.
The information alleges that Izaguirre-Galvez, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in York County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Izaguirre-Galvez faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO). It is being prosecuted by Special Assistant United States Attorney Alice Song Hartye.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Guilty Plea in Immigration and Tax Fraud SchemeRead the Press Release
PHILADELPHIA - Kim Meas, 60, a native of Cambodia, pleaded guilty to charges stemming from schemes to defraud the United States. Meas was the managing director of LS Services Corporation (“LS”), an employee leasing company in South Philadelphia. He pleaded guilty to two counts of conspiracy to commit an offense against the United States, two counts of transporting illegal aliens and two counts of failure to collect and pay federal income and employment taxes. United States District Court Judge Jan E. Dubois scheduled a sentencing hearing for February 18, 2015. Meas faces a maximum possible statutory sentence of 30 years in prison, a fine of up to $1.5 million, a $600 special assessment, and three years of supervised release.
As the principal corporate officer at LS, Meas negotiated labor leasing contracts with various companies throughout the greater Delaware Valley that leased temporary workers from LS. Meas also established approximately 14 shell companies to create the illusion that the workers that LS leased to other companies were employees of the shell corporations. As such, the shell corporations, and not LS, would be responsible for collecting and paying employment and income taxes for the employees. Meas attempted make it impossible for the IRS to determine the identity of the employer of the illegal aliens, as well as the amount of employment and income taxes that the employer of the illegal aliens was required to pay to the federal treasury. LS also transported the illegal aliens, free of charge, to various work locations in company vehicles. The companies, that leased employees from LS, did not withhold federal income taxes on the wages paid to the employees, nor did these companies collect and pay to the Internal Revenue Service, employment taxes on the income earned by the workers. Meas had two co-conspirators, Ken Sem and Vivi Fnu, who previously pleaded guilty.
This case was investigated by U.S. Immigration and Customs Enforcement Homeland Security Investigations and Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Floyd J. Miller.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Greenville Man Sentenced for Selling Crack and HeroinRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Terrence W. Boyle sentenced GREGORY STARKIE, 34,of Greenville, North Carolina, to 96 months in prison and 3 years of supervised released for distribution of crack cocaine and aiding and abetting the distribution of heroin. STARKIE previously pled guilty to these charges on May 15, 2014.
Between July 26, 2012, and September 8, 2012, the Greenville Police Department used an informant to buy crack cocaine from STARKIE on four occasions. On May 8, 2013, another informant, working at the direction of the Greenville Police Department and the Burearu of Alcohol, Tobacco, Firearms and Explosives, met with STARKIE to purchase heroin. STARKIE introduced the informant to his uncle, James Edward Starkie (previously convicted), who sold heroin to the informant.
STARKIE received an enhanced punishment as a career offender based on his prior state convictions for common law robbery, assault with a deadly weapon inflicting serious injury, and selling cocaine.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Gladstone Man Sentenced to 12 Years for Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Gladstone, Mo., man was sentenced in federal court today for producing child pornography.
Barry Alan Darlington, 74, of Gladstone, was sentenced by U.S. District Judge Gary A. Fenner to 12 years in federal prison without parole.
On June 6, 2014, Darlington pleaded guilty to producing child pornography. Darlington also admitted that he engaged in a pattern of activity involving prohibited sexual conduct.
Based upon information received by the Western Missouri Cyber Crimes Task Force from two cybertips, law enforcement officers executed a search warrant at Darlington’s residence on July 18, 2013. They seized multiple electronic media, including a computer hard drive that contained multiple images of child pornography. The child victim portrayed in the images told investigators that Darlington took the sexually explicit photos of her when she visited his residence during the summer approximately 11 years earlier, when she was 10 years old.
According to court documents, Darlington actually exploited the child victim for a three-year period. Darlington knowingly distributed some of the images of his sexually explicit conduct with the child victim over the Internet.
Darlington had hundreds, if not thousands, of images and more than 100 videos of child pornography, according to court documents. The government believes that even these numbers understate Darlington’s true exploitation of children because Darlington willfully destroyed a hard drive between the time he was first approached by law enforcement in an initial child pornography investigation and the service of the search warrant at his residence.
Darlington’s Internet chat logs reveal his pedophilic tendencies and his thoughts of perpetrating against other children. In his chats, according to court documents, he says he’s been ogling a neighbor girl whom his victim had been playing with when she was in town. The girl was 13 years of age at the time of the chat. Darlington said he tried to see if the girl could spend the night at his house, but Darlington’s wife did not approve. In his chats, Darlington also says he trolls malls to look at teen girls and he ‘checks out the kids’ when he’s at the grocery store. Darlington also says in his chats that he is attracted to other children besides his victim, but didn’t abuse them because he feared they would disclose his molestation.
This case was prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Gladstone, Mo., Police Department and the Western Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Fuquay-Varina Man Sentenced to 24 Months for Bankruptcy Fraud and Obstruction ChargeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced DONALD Wayne MANGUM , 52, of Fuquay-Varina to 24 months imprisonment, followed by 3 years of supervised release, and ordered him to pay $101,675.00 in restitution.
MANGUM was named in an Indictment filed on October 24, 2013, charging him with Bankruptcy Fraud and Destruction, Alteration, and Falsification of Records. On December 16, 2013, MANGUM pled guilty to those charges.
According to the investigation, on February 28, 2011, MANGUM fraudulently filed a Chapter 13 bankruptcy petition in the Eastern District of North Carolina, in the name of someone else in an effort to prevent the mortgage holder from foreclosing on his home. MANGUM failed to file a schedule of assets and liabilities or statement of financial affairs. The debt counseling statements, which were fraudulently filed under the penalty of perjury by MANGUM, were signed in the name of another.
Further, on June 10, 2011, MANGUM fraudulently filed a pro se Chapter 13 bankruptcy petition in the Eastern District of North Carolina, in the name of another. The debt counseling statement was fraudulently filed under the penalty of perjury by MANGUM.
MANGUM appeared at a Rule 2004 Examination in February, 2012, during which time he admitted to the fraudulent filings, and admitted to making misleading statements.
On June 12, 2012, the Bankruptcy Court entered an order directing that the two fraudulently filed cases be dismissed ab initio and directed that the records be expunged other than as necessary for further investigation. MANGUM was barred from filing bankruptcy for ten years and was permanently enjoined from assisting another individual with bankruptcy filings. Lastly, as a sanction, MANGUM was ordered to pay $2,500 to the United States Bankruptcy Court within five months.
Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Frederick Financial Officer Convicted of Stealing over $1.2 Million from a ClientRead the Press Release
Greenbelt, Maryland –Travis Wetzel, age 35, of Frederick, Maryland pleaded guilty today to wire fraud and money laundering in connection with a fraudulent scheme to transfer $1,282,224 from an elderly client’s annuity account.The plea agreement 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.
Wetzel processed financial distribution documents for an investment advisory firm located in Rockville, Maryland. In 2009, Wetzel was promoted to branch operations manager. According to his plea agreement, from July 2010 to September 2012, Wetzel took a total of approximately $1,282,224 from an annuity account of a client without the client’s knowledge, and used the money for his personal benefit. Wetzel knew that the client was elderly, whose age and physical condition would facilitate repeatedly taking money from the client’s account.
Wetzel also laundered some of the money he took by transferring the money to other bank accounts he controlled.
Wetzel has agreed to forfeit $1,282,224.
Wetzel faces a maximum sentence of 30 years in prison and a $250,000 fine for wire fraud; and 10 years in prison for money laundering. U.S. District Judge Deborah K. Chasanow scheduled sentencing for February 23, 2015, at 11:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation and thanked Assistant United States Attorneys David Salem and Leah J. Bressack, who are prosecuting the case.
Four Individuals Charged with Conspiring to File False Claims for Tax RefundsRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges have been filed against four central Pennsylvania residents in connection with fraudulent federal income tax refund claims.
According to United States Attorney Peter Smith, separate criminal Informations were filed today in U.S. District Court in Williamsport charging the following persons:
Fatima Brooks, age 51, Williamsport, charged with filing 20 fraudulent income tax returns seeking $113,000 in fraudulent refunds.
Felicia Burks, age 44, Lancaster, charged with filing 52 fraudulent income tax returns seeking $85,000 in fraudulent refunds.
Valerie Burton, age 53, Williamsport, charged with filing 58 fraudulent income tax returns seeking $274,000 in fraudulent refunds.
Dawn Smith, age 44, Williamsport, charged with filing 41 fraudulent income tax returns seeking $88,000 in fraudulent refunds. Smith was also charged with making false statements relating to the Medicare Attendant Care Program and receiving payments for health care services which she never provided.
The fraud in each case allegedly took place between January 2012 and May 2013.
With respect to the fraudulent income tax billing scheme, each individual is facing up to 10 years imprisonment and a fine of $250,000. Based on the false statements concerning the Medicare program, Smith is facing an additional 5 years imprisonment and a fine of $250,000.
The government also filed a plea agreement in each case which is subject to approval of the assigned judge.
The investigation was conducted by the Internal Revenue Service – Criminal Investigation Division, the Federal Bureau of Investigation, the United States Postal Inspection Service, and the U. S. Department of Health and Human Services – Office of Inspector General. Assistant United States Attorney Wayne P. Samuelson has been assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.Four Indicted in Conspiracy to Rob Three Cell Phone StoresRead the Press Release
Baltimore, Maryland - A federal grand jury has indicted Justin Jose Snow, a/k/a “J.O.,” age 22; his brother, Johnny Devon Snow, age 20; their cousin Taylor Yvonne Snow, age 22; and Arkeene Antoyn Redditt-Abrams, a/k/a “Duke,” age 26, all of Baltimore, today in connection with the armed robberies of three cell phone stores.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Gary Gardner of the Howard County Police Department.
According to the six-count indictment, from May 1, 2014 through June 24, 2014, the defendants conspired to rob three cell phone stores. The indictment alleges that the defendants planned to steal cash, cell phones and other electronic communications devices, and tablet computers; and that they planned to sell the stolen merchandise. As part of the plan, the defendants determined which firearms were used in the commission of the robberies; conducted surveillance of the targeted stores; wore face masks, hooded jackets and gloves to conceal their identities; and used plastic trash bags to carry the stolen items from the stores.
Specifically, the indictment alleges that on June 17, 2014, the defendants used a car rented by Taylor Snow to travel to an AT&T store on Dual Highway in Hagerstown. Taylor Snow allegedly entered the store to “case” it before the robbery. A short time later Justin Snow, Taylor Snow and Johnny Snow entered the store, and brandished a firearm in an attempt to rob an employee of the store. According to the indictment, a few hours later the defendants drove the rented car to an AT&T store in Ellicott City, Maryland. Redditt-Abrams allegedly entered the store to “case” it, then the Snows entered the store, brandished a gun and stole cash, cell phones and tablet computers worth more than $18,000.
Further, the indictment alleges that on June 24, 2014, Justin and Taylor Snow traveled to Mechanicsburg, Pennsylvania, where they used a gun to rob a T-Mobile store of cash, cell phones and tablet computers.
The defendants face a maximum sentence of 20 years in prison for the conspiracy and for each of two counts of committing a commercial robbery; and a minimum of seven years and up to life in prison for each of three counts of brandishing a firearm in relation to a crime of violence, consecutive to any other sentence. No court appearance has been scheduled for the defendants who remain in custody on related state charges.
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 FBI, and Howard County Police Department, for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney John F. Purcell, who is prosecuting the case.
Former Stock Broker Pleads Guilty in Manhattan Federal Court to Insider Trading ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DARYL PAYTON, a former stock broker at a securities trading firm (“Securities Trading Firm-1”), pled guilty today in Manhattan federal court to charges arising from his involvement in an insider trading scheme. The alleged scheme involved the misappropriation of material, non-public information (“Inside Information”) concerning IBM’s acquisition of a software company, SPSS, Inc., in 2009. PAYTON was charged in June 2012, and pled guilty today before U.S. District Judge Andrew L. Carter, Jr.
Manhattan U.S. Attorney Preet Bharara said: “With his guilty plea today, Daryl Payton must answer for his role in a scheme to acquire inside information about a corporate acquisition, and profit illegally from it to the tune of a quarter of a million dollars.”
According to the Indictment to which PAYTON pled guilty, statements made during the plea proceeding, and other court documents:
The Inside Information concerning IBM’s acquisition of SPSS originated from a corporate lawyer who was part of the legal team that represented IBM in the transaction (“Attorney-1”) in 2009. On or about May 31, 2009, Attorney-1 shared Inside Information concerning the transaction, including the names of the parties and the fact that IBM was going to acquire SPSS for a significant premium over its market price, with his close friend, Trent Martin, a former research analyst at an international financial services firm. The information was shared in confidence and, based on their longstanding history of sharing confidences, Attorney-1 expected that Martin would not share the information or use it to trade.
However, in June and July 2009, Martin bought SPSS common stock and call option contracts based on the Inside Information he was given by Attorney-1 and, in turn, shared the tip with his roommate, Thomas Conradt, who worked as a stock broker at Securities Trading Firm-1. In July 2009, Conradt bought SPSS common stock and tipped PAYTON, his co-worker at Securities Trading Firm-1 who also bought SPSS call options, as well as other co-workers at the firm. When IBM announced its acquisition of SPSS on July 28, 2009, the share price of SPSS common stock rose by 41% in one day. Thereafter, PAYTON sold his SPSS positions, yielding total profits of at least $250,000.
PAYTON, 38, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. He is scheduled to be sentenced by Judge Carter on March 5, 2015, at 2:00 p.m. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation. He also thanked the U.S. Securities and Exchange Commission.
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.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jessica Masella, Andrew Bauer, and Damian Williams are in charge of the prosecution.
U.S. v. Benjamin Durant and Daryl Payton S3 Indictment
Former Naugatuck Resident Sentenced to 57 Months for Illegally Obtaining and Selling Prescription NarcoticsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JESSE KAPLAN, 31, formerly of Naugatuck, was sentenced today by Senior U.S. District Judge Ellen Bree Burns in New Haven to 57 months of imprisonment, followed by three years of supervised release, for illegally obtaining and distributing prescription narcotics.
According to court documents and statements made in court, in May 2012, the Drug Enforcement Administration began an investigation into the filling of fraudulent prescriptions for oxycodone at pharmacies in Connecticut and New York through the use of fraudulent identifications. The investigation revealed that KAPLAN and a co-defendant traveled to pharmacies together and used multiple aliases to fraudulently fill prescriptions for oxycodone and hydromorphone. They then pooled, traded or shared their pills for further distribution.
On August 8, 2013, KAPLAN was arrested by Naugatuck Police as a result of his alleged participation in a home invasion in Torrington. The incident followed an attempted sale of 60 oxycodone 30mg pills in exchange for $1,000 at the residence. According to pharmaceutical records and video surveillance, just hours before this attempted drug transaction, KAPLAN filled a prescription at a pharmacy under the alias “Sean Mullin” for 60 oxycodone 30mg pills. When Naugatuck police officers arrested KAPLAN, they located seven New York State driver’s licenses, all depicting KAPLAN’s photo with different identifying information.
KAPLAN was arrested on federal charges on December 20, 2013. On August 12, 2014, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute oxycodone.
This matter is being investigated by the Drug Enforcement Administration’s Diversion Squad and the Greenwich and Naugatuck Police Departments. The case is being prosecuted by Assistant U.S. Attorney Vanessa Richards.
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(203) 821-3722 [email protected]Former Mayor and President of the National Conference of Black Mayors Re-sentenced to 20 YearsRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that U.S. District Judge Maurice A. Hicks has re-sentenced GEORGE L. GRACE, SR., age 70, of St. Gabriel, Louisiana, to twenty (20) years imprisonment, a $50,000 fine, forfeiture of $22,000, and a year of supervised release following imprisonment.
Today’s sentencing is the result of a decision by the Fifth Circuit Court of Appeals which required the original 22 year prison sentence to be reconsidered. The sentence is based on GRACE’s corrupt activities while serving as the Mayor of St. Gabriel and the President of the National Conference of Black Mayors. It is believed to be the longest public corruption prison sentence in the history of Louisiana.
GRACE was convicted by a jury following a six week trial of violating the Racketeer Influenced and Corrupt Organizations Act (RICO), obstruction of justice, making false statements, mail fraud, wire fraud, bribery involving a federally-funded entity, and use of an interstate facility in aid of racketeering. At sentencing, the court determined that GRACE was responsible for over four different bribery schemes involving over nine (9) million dollars, including schemes to extort businessmen seeking to do business in the city and help victims of Hurricane Katrina.
U.S. Attorney Green stated: “This historic sentence should send a loud and clear message that those engaged in public corruption will face severe punishment, and hopefully, any public official who might consider such a path will take heed.”
Status of Other Operation Blighted Officials Defendants
Thomas A. Nelson, Jr.: The former Mayor of New Roads, Louisiana, was convicted by a federal jury following a two and a half week trial of violating RICO, engaging in honest services wire fraud, using an interstate facility in aid of racketeering, and making false statements to the FBI. Chief Judge Jackson sentenced Nelson to 11 years in prison. Following appeal, Nelson’s sentence was reduced to 10 years in prison.
Maurice Brown: The former Mayor of White Castle, Louisiana, was convicted by a federal jury following a two week trial of violating RICO, engaging in honest services wire and mail fraud, and use of an interstate facility in aid of racketeering. Chief Judge Jackson sentenced Brown to 10 years in prison.
Frederick W. Smith: The Chief of Police for Port Allen, Louisiana, was convicted by a federal jury following a two week trial of 11 counts of violating RICO, engaging in honest services wire and mail fraud, and using an interstate facility in aid of racketeering. Chief Judge Jackson sentenced Smith to 90 months in prison.
Derek Lewis: The former Mayor of Port Allen, Louisiana, pled guilty to violating RICO and agreed to cooperate with authorities. Chief Judge Jackson sentenced Lewis to 40 months imprisonment.
Johnny Johnson: The former member of the Port Allen City Council pled guilty to using an interstate facility in aid of racketeering and agreed to cooperate with authorities. Chief Judge Jackson sentenced Johnson to two years of probation, with a condition of having to spend 6 months in a half-way house.
Richard Chambers: The former deputy commissioner of the Louisiana Department of Insurance pled guilty to using an interstate facility in aid of racketeering and agreed to cooperate with authorities. Chief Judge Jackson sentenced Chambers to 30 months imprisonment.
This investigation was being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office for the Middle District of Louisiana, with assistance from the U.S. Department of Housing and Urban Development, Office of Inspector General, and the U.S. Department of Homeland Security, Office of Inspector General.
Operation Blighted Officials was prosecuted by First Assistant United States Attorney Corey R. Amundson, who serves as Chief of the Criminal Division, Assistant United States Attorney M. Patricia Jones, who serves as Senior Litigation Counsel, and Assistant United States Attorney Michael J. Jefferson.
Former Lowell Resident Pleads Guilty to Illegal Firearm PossessionRead the Press Release
BOSTON – A former Lowell man and convicted felon pleaded guilty yesterday to illegally possessing multiple firearms, including a semi-automatic pistol.
Eric Texeira, 34, pleaded guilty yesterday to being a felon in possession of firearms and ammunition. U.S. District Judge Denise J. Casper scheduled sentencing for Feb. 10, 2015. On May 16, 2014, Texeira, a convicted felon, possessed a Glock semi-automatic pistol and sold multiple other firearms, including two revolvers and a rifle, to another individual for $1,300. Some of the firearms had obliterated serial numbers.
The maximum sentence under the statute is 10 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 on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Lowell Police Superintendent William Taylor, made the announcement. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Former Lake Charles Company Employee Sentenced for Conspiring to Steal $900,000 Worth of MerchandiseRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that a former purchasing agent for a Lake Charles aviation company was sentenced to 36 months in prison for his role in stealing more than $900,000 worth of aircraft parts in return for cash.
David Kuhl, 54, of Federal Way, Washington, was also ordered by U.S. District Judge Richard T. Haik, to pay restitution of $930,401 and serve three years of supervised release. Kuhl pleaded guilty on October 10, 2013, to one count of conspiracy to commit wire fraud. According to evidence presented at the guilty plea, Kuhl used his position as a purchasing agent for Aeroframe Services LLC in Lake Charles to steal merchandise and then sell that merchandise to other businesses in the aviation industry across the United States. After those aviation companies sold the parts, they would either wire money or send checks to Kuhl who would then pay his co-conspirator at Aeroframe. He was also paid in the form of airline tickets, and on one occasion, in the form of a family vacation. Kuhl took part in the conspiracy from February 26, 2007 to June 10, 2009. Aeroframe is a Federal Aviation Administration (FAA)/European Aviation Safety Agency (EASA) certified Part 145 repair station and maintenance repair operations business.
“This defendant abused his position to satisfy his greed,” Finley stated. “We will prosecute anyone who commits fraud against businesses in the Western District of Louisiana. Thank you to the prosecutors and law enforcement agencies who worked this case.”
The U.S. Secret Service and the Lake Charles Police Department conducted the investigation. Assistant U.S. Attorneys Richard A. Willis and Daniel J. McCoy prosecuted the case.Former Finance Manager Sentenced to 30 Months in Federal Prison for Identity TheftRead the Press Release
Memphis, TN – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced today that Terjun Tremaine Parker, 37, of Little Rock, Arkansas, was sentenced on Friday, November 14, 2014 to serve 30 months in federal prison for his acts of identity theft, in violation of 18 U.S.C. § 1028.
According to the facts presented in the indictment and revealed during subsequent hearings, in March 2014 Parker was a finance manager at Collierville Chrysler Dodge Jeep Ram. While employed by the Collierville dealership, Parker supplied personal identifying information of dealership customers to an associate of his. Parker believed and intended that his associate would use the information to commit fraud, such as opening credit accounts in victims’ names. On several occasions, Parker met his associate and exchanged victims’ personal information for money. On one of these occasions, April 30, 2014, Parker met his associate at a gas station in Collierville and delivered 17 credit reports containing personal information of former customers.
In addition to the prison sentence, United States District Judge John T. Fowlkes, Jr. ordered Parker to serve two years of supervised release. There is no parole in the federal prison system.
This investigation was conducted by the United States Secret Service. Assistant U.S. Attorney Stephen Hall represented the government.
Former Farmington Private School Teacher Pleads Guilty to Federal Child Pornography OffenseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH RAJKUMAR, 44, formerly of Farmington, pleaded guilty today in Hartford federal court to one count of attempted receipt of child pornography. The charge stems from RAJKUMAR’s sexual relationship with a student while he was a teacher at Miss Porter’s School in Farmington.
According to court documents and statements made in court, in approximately April 2011, RAJKUMAR, who was a science teacher and advisor to the Science Olympiad team at Miss Porter’s School, befriended a minor female victim who was a student at the school. Before the victim left the school for summer break in June 2011, RAJKUMAR pressured her to create an anonymous email account that did not contain her name, which she eventually did. RAJKUMAR had already created an anonymous email account for his own use, in violation of the school’s policy that teachers and students should communicate via email only through a school-sponsored website. Through the email accounts, RAJKUMAR and the victim frequently engaged in video chats and, during the chats, RAJKUMAR made multiple attempts to get the victim to remove her shirt. The victim initially resisted, but eventually succumbed to RAJKUMAR’s advances and exposed her chest to him through the video chat.
Beginning in approximately November 2011, RAJKUMAR and the victim engaged in a sexual relationship that lasted several months. The investigation revealed evidence of numerous video chats that took place through at least April 2012. In the chats, RAJKUMAR frequently made lascivious comments to the victim and pressured her to expose herself.
The investigation further revealed that RAJKUMAR had also begun to harass other young girls at the school in person and through text messages. He told one female student via text message that she looked “hot” in the pants she was wearing at a school event and told another that she should create an anonymous email account so that they could do “naughty things” that were “secret.” In total, RAJKUMAR corresponded with at least six victims, including the one victim with whom he eventually had sexual intercourse. RAJKUMAR asked at least one of the other victims to start a physical relationship with him.
RAJKUMAR is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on February 6, 2015, at which time he faces a minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
RAJKUMAR previously pleaded guilty in state court to sexual assault in the second degree and, in January 2014, was sentenced to 10 years of incarceration, execution suspended after 18 months, and 10 years of probation. He currently is in state custody.
This matter is being investigated by Homeland Security Investigations with the assistance of the Farmington Police Department. The case is being prosecuted by Assistant U.S. Attorney Sarala V. Nagala
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Tom Carson
(203) 821-3722 [email protected]Former Controller of Non-Profit Organization That Funds Medical Research Charged in Manhattan Federal Court with Embezzling over $1.8 Million and Evading TaxesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Philip R. Bartlett, Inspector in Charge, United States Postal Inspection Service (“USPIS”), and Shantelle P. Kitchen, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigations Division (“IRS-CI”), announced today the arrest of KAREN ALAMEDDINE, a/k/a “Karen Dean,” the former controller of a New York-based non-profit organization whose core mission is to cure genetic illnesses by supporting biomedical research (the “Non-Profit”), for allegedly embezzling more than $1.8 million from the Non-Profit. ALAMEDDINE also was charged with tax evasion for deliberately failing to report to the IRS as income the money she embezzled from the Non-Profit. ALAMEDDINE was arrested yesterday in Boston, Massachusetts, and was presented today before United States Magistrate Judge Judith Gail Dein in Boston federal court.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Karen Alameddine not only embezzled almost $2 million and evaded taxes, she did so by ripping off the non-profit organization she worked for – an organization dedicated to finding cures for serious diseases – and she did so when she was supposed to be responsible for its finances. I would like to thank our partners on this investigation, USPIS and IRS-CI, for their work.”
USPIS Inspector in Charge Philip R. Bartlett said: “While Ms. Alameddine allegedly went to great lengths to hide her theft from her employer and those hoping to find the cure for serious illnesses, she could not hide from the watchful eye of law enforcement who put an end to her illegal activities.”
IRS Acting Special Agent in Charge Shantelle P. Kitchen said: “It is clear how embezzlement can hurt a business’s owners or stockholders, but stealing from a non-profit organization deprives those who will benefit from the organization’s mission. As a financial investigative agency, IRS-CI is dedicated to working with federal prosecutors and our partner federal law enforcement agencies, like the U.S. Postal Inspection Service, to investigate those who take advantage of their positions for personal criminal gain, at the expense of others.”
According to the Complaint unsealed in Manhattan federal court:
From approximately late 2008 through early 2014, while working as the controller for the Non-Profit, ALAMEDDINE diverted over $1.8 million of the Non-Profit’s funds to her own bank accounts and for her own personal use. ALAMEDDINE executed the scheme principally by disguising QuickBooks entries to make transfers to her personal bank account appear as if they were transfers made to pay grant recipients of the Non-Profit. ALAMEDDINE further sought to disguise the fraud by inventing a fictitious accounting firm named “Davis & Greene,” purportedly based in Washington, D.C., which was, according to ALAMEDDINE, retained to prepare certain tax returns for the Non-Profit for the 2012 and 2013 tax years.
After ALAMEDDINE fraudulently transferred the funds from an account belonging to the Non-Profit to a personal bank account, she further transferred the funds to other accounts she controlled, and thereafter used those funds for various personal expenses, including to pay personal bills. Among the personal bills ALAMEDDINE paid with the fraudulently diverted funds were utility bills, car payments, and personal mortgages.
In addition, for each of the calendar years 2009 through 2013, ALAMEDDINE filed tax returns with the IRS in which she deliberately omitted the reporting of the income she received from the fraud. Those deliberate omissions resulted in ALAMEDDINE’s evasion of substantial amounts of income for each of the years between 2009 and 2013.
ALAMEDDINE, 57, of Perris, CA, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, and five counts of tax evasion, each of which carries a maximum sentence of 5 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the IRS and the USPIS.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Stanley J. Okula is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Former Branch Manager at BBVA Compass Bank in Big Spring, Texas, Is Sentenced to 41 Months in Federal Prison on Bank Fraud ConvictionRead the Press Release
LUBBOCK, Texas — A former Branch Manager at BBVA Compass Bank in Big Spring, Texas, (BBVA Big Spring) was sentenced on Friday by U.S. District Judge Sam R. Cummings on a bank fraud conviction, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Lisa Lynette Barber, 49, of Amarillo, Texas, was sentenced to 41 months in federal prison and ordered to pay $1,095,540 in restitution. Barber pleaded guilty in July 2014 to one count of bank fraud. Judge Cummings ordered that she surrender to the Bureau of Prisons on Decemer 19, 2014.
According to documents filed in the case, Barber was employed by BBVA Big Spring as Branch Manager from 2008 to 2012. BBVA Big Spring acquired State National Bank in 2008 where Barber had worked from 1997 to 2008. Because of her position with BBVA Big Spring, Barber had full access to customers’ bank accounts.
Barber made withdrawals from BBVA Big Spring customers’ accounts without their knowledge, authority and permission, causing an approximate $1.1 million loss to BBVA Big Spring.
Barber executed her scheme by several means. She fraudulently used customers’ names and bank account numbers to initiate debit entries and withdrawals, which acted as formal requests for cashier’s checks payable to another financial institution. Sometimes she forged BBVA Big Spring employee bank tellers’ signatures on the cashier’s checks, which were then deposited into her personal banking account held at the Big Spring Community Federal Credit Union (BSCFCU).
Acting in a supervisory capacity, Barber withdrew money from customers’ accounts through her employee tellers. She submitted fraudulent withdrawal slips to BBVA Big Spring tellers to cause them to give Barber large amounts of cashier’s checks not belonging to her. Barber informed the tellers that she was conducting business and making transfers for her customers, and the tellers did not questions the legitimacy of those transactions because they trusted Barber was conducting the transactions at the customer’s request.
Barber victimized customers with whom she had a long-standing relationship, or customers she suspected would not immediately notice the unauthorized transactions. If customers noticed an improper transaction, they reported it directly to Barber who would immediately refund their accounts with money stolen from other customers’ accounts. This response served to confirm victims’ trust in Barber.
The FBI investigated the case. Assistant U.S. Attorney Chris Wolf prosecuted.
Final Defendant in Baltimore Heroin Distribution Conspiracy Sentenced to Five Years in PrisonRead the Press Release
Thirteen Co-Defendants Previously Convicted and Sentenced
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced Raymond Jefferson, age 44, of Baltimore, to five years in prison, followed by three years of supervised release, for conspiring to distribute and possession with intent to distribute heroin.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to his plea agreement, from January to July 23, 2013, Jefferson was part of a drug trafficking organization that distributed heroin from an open-air drug “shop” in the Poplar Grove neighborhood of Baltimore. On a daily basis during the conspiracy Jefferson’s co-conspirators purchased heroin from several sources of supply, stored narcotics at “stash houses” throughout Baltimore, and packaged narcotics for street-level distribution. Jefferson personally sold heroin to retail customers and, at times, supervised the activities of other street-level dealers.
During the conspiracy, Jefferson and others conspired to distribute and possess with the intent to distribute at least one kilogram of heroin.
Darryl Robinson, age 50, of Baltimore, the leader of the organization, pleaded guilty and was sentenced to 15 years in prison. The remaining co-defendants: Mario Williams, age 38, of Baltimore; Darrell Gilliam, age 44, of Towson, Maryland; Isiah Robinson, age 28, of Baltimore; Antonio Berry, age 43, of Baltimore; Joyce Dunn, age 52, of Baltimore; Tyree Howard, age 48, of Baltimore; Hilton Gibbs, age 43, of Baltimore; Douglas Duncan, age 48, of Baltimore; Darryl Debro, age 39, of Baltimore; Kevin Fisher, age 46, of Baltimore; Eric Johnson, age 43, of Baltimore; and Reginald Randolph, age 48, of Baltimore, also pleaded guilty and were sentenced for their roles in the conspiracy.
United States Attorney Rod J. Rosenstein praised the ATF, Baltimore Police Department, and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Clinton J. Fuchs and Scott Lemmon, who prosecuted the case.
- Final Defendant Convicted in Stolen Identity Refund Fraud Scheme
- Estranged Couple Gets Massive Sentences for Sexual Exploitation of A Child
Essex County, N.J., Contractor Sentenced to 14 Months in Prison for Defrauding Bronx Home OwnerRead the Press Release
TRENTON N.J. - An Essex County, N.J. contractor who was paid nearly $100,000 to renovate the home of a Bronx, N.Y., woman, was sentenced today to 14 months in prison for defrauding her of the money in connection with the remodeling project, U.S. Attorney Paul J. Fishman announced today.
Raymond Norville, 45, of Orange, N.J., owner of RRL Unique Homes Inc., a construction company, previously pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding information charging him with one count of conspiracy to commit wire fraud. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court: In 2011, Norville was a contractor who owned RRL Unique Homes Inc. The victim wanted to renovate her newly purchased home in the Riverdale section of Bronx. Norville agreed to perform the renovations on the residence for $250,000. He submitted invoices to the victim, inducing her to pay him $98,600 in cash for the purchase of materials, supplies, architectural plans, rental equipment and permits needed for the project. Norville emailed pictures of materials that he intended to purchase. Norville neither delivered to the job site, nor provided proofs of purchase for the materials. By May 2011, work on the project had not started and the victim demanded either a refund or the materials and supplies Norville promised to buy. Norville attempted to repay a portion of the $98,600 by providing a check for $24,500, which was rejected for insufficient funds.
In addition to the prison term, Judge Pisano sentenced Norville to three years of supervised release and ordered him to pay restitution of $98,600.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia for the New York Region; and detectives of the Waterfront Commission of New York Harbor, under the direction of Commissioner Michael Murphy, for the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel V. Grady O’Malley in Newark.
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Defense counsel: David P. Schroth Esq., TrentonElizabeth Ann Carrier Sentenced to Eight Months in Prison for Making False Reports of Tainted Consumer ProductsRead the Press Release
Johnson City Resident Falsely Reported Family Member Poisoned Juice Drinks
GREENEVILLE, Tenn. – On Nov. 17, 2014, Elizabeth Ann Carrier, 52, of Johnson City, Tenn., was sentenced to serve eight months in prison by the Honorable J. Ronnie Greer, U.S. District Judge. Upon her release from prison, Carrier will be supervised for three years by the U.S. Probation Office. She was also ordered to complete 150 hours of community service, and pay a $100 special assessment to the United States.
Carrier pleaded guilty in July 2014 to a federal indictment charging her with falsely communicating reports of consumer product tampering. According to public records, Carrier placed telephone calls to the Pepsico Products consumer hotline in June 2013 claiming that an individual related to her by marriage had inserted rat poison in bottled juice drinks manufactured and distributed by Tropicana and Quaker Foods.
U.S. Attorney William C. Killian noted that Carrier was prosecuted under a statute which Congress enacted after the tainted Tylenol poisoning deaths which occurred in Chicago during 1982. "Understandably, Congress became concerned about the intentional tainting of consumer products and false reports of consumer product tampering. Such actions significantly disrupt interstate commerce, threaten public health, undermine public confidence in the safety of our food and drug supplies, and waste private and public resources investigating false reports. Individuals who knowingly make false reports of consumer product tampering should be aware that they are subject to federal prosecution," said Killian.
The indictment and subsequent conviction of Carrier was the result of an investigation conducted by agents with the U.S. Food and Drug Administration, Office of Criminal Investigations, assisted by the Sullivan and Carter County Sheriff's offices and Tennessee State Board of Probation and Parole. Assistant U.S. Attorney Helen Smith represented the United States.
Dundalk Man Sentenced to 14 Years in Prison for Armed RobberyRead the Press Release
Used Handguns and Threatened to Kill Store Employees
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Richard Coleman, age 49, of Dundalk, Maryland, today to 14 years in prison, followed by three years of supervised release for conspiring to commit robbery.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; and Baltimore Police Commissioner Anthony W. Batts.
According to his plea agreement, on December 7, 2013, Coleman and Arnold Dorsey entered a rental business on Frederick Road in Baltimore City. They conversed about gifts with each other and store staff. They asked an employee about an iPad (tablet computer.)
The store clerk walked back to an office to retrieve a charger to demonstrate the tablet. Both Dorsey and Coleman followed the clerk to the office. Once there, Coleman pulled out a semiautomatic handgun and pointed it at the clerk. Dorsey went to the next office, pulled out a semiautomatic handgun and pointed it at another clerk. They forced the clerks to open the register and took $1,144. They then took $73 from one clerk and $85 from another clerk. At this point they had the clerks lie on the floor and threatened to kill them.
The Baltimore Police Department received a call for a hold up and two officers responded. The first officer on the scene saw both defendants behind the counter in front of the office area. A clerk signaled to the officer alerting the officer that the defendants were robbing the business. The officer entered and made contact with Dorsey as he attempted to leave the store. The officer saw Dorsey’s handgun and had to subdue Dorsey. A second officer arrived and took custody of Coleman who surrendered his handgun. The officers recovered $1,144 from Dorsey and $158 from Coleman.
Co-defendant Arnold Dorsey, age 52, of Baltimore, previously pleaded guilty to his participation in the robbery and is scheduled to be sentenced on November 25, 2014 at 11:00 a.m.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Brandis Marsh, a cross-designated Baltimore Assistant State’s Attorney assigned to Exile cases, who prosecuted the case.
Convicted Felon Sentenced for Unlawful Possession of FirearmRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Convicted felon Marvin Junior Thompson, 59, of Burlington, West Virginia, was sentenced to 30 months in prison for unlawful possession of a firearm, United States Attorney William J. Ihlenfeld, II, announced today.
Thompson was convicted in March 1990 of the felony offenses of “First Degree Murder” and “Burglary” in the Circuit Court of Hampshire County, West Virginia. As a result of this conviction, Thompson was prohibited from possessing a firearm. In May 2013, Thompson was discovered in possession of a .300 caliber rifle along with ten rounds of .300 caliber ammunition.
Thompson pled guilty in July 2014 to one count of “Felon in Possession of Firearm” after an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mineral County Sheriff’s Department, and the West Virginia State Police.
Assistant U.S. Attorney Paul Camilletti prosecuted the case on behalf of the government.
U.S. District Judge Gina M. Groh presided.
Committee Studying American Indian and Alaska Native Children Exposed to Violence Makes Recommendations to Justice DepartmentRead the Press Release
The Advisory Committee of the Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence released policy recommendations to the Justice Department today.
The report recommends a significant rebuilding of the current services provided to Indian Country, through increased partnering and coordination with tribes, and increased funding for programs to support American Indian and Alaska Native children. Each of the five chapters discusses the Advisory Committee’s findings and recommendations. The report provides the Advisory Committee’s vision for the development of effective, trauma informed, and culturally appropriate programs and services to protect American Indian and Alaska Native children exposed to violence.
“American Indian and Alaska Native children represent the future, and they face unprecedented challenges, including an unacceptable level of exposure to violence, which we know can have lasting and traumatic effects on body and mind,” said Attorney General Eric Holder. “We must understand these impacts well so we can pursue policies that bring meaningful change. That’s why I am deeply grateful for the work of this advisory committee and the continuing mission of this task force.”
Attorney General Eric Holder created the task force in 2013. It is composed of a federal working group that includes U.S. Attorneys and officials from the Interior and Justice Departments and a federal advisory committee of experts on American Indian studies, child health and trauma, victim services and child welfare. Former U.S. Sen. Byron Dorgan and Iroquois composer, singer and child advocate Joanne Shenandoah co-chaired the 13-member committee.
These recommendations are a culmination of the research and information gathered through four public hearings held between December 2013 and June 2014 in Bismarck, North Dakota; Scottsdale, Arizona; Fort Lauderdale, Florida; and Anchorage, Alaska, and five listening sessions in Arizona, Minneapolis and Alaska where over 600 people participated from over 62 Tribes and 15 States from across the nation. More than 70 experts and 60 community members testified at the hearings, addressing domestic and community violence in Indian Country; the pathway from victimization to the juvenile justice system; the roles of juvenile courts, detention facilities and the child welfare system; gang violence; and child sex trafficking.
The Task Force on American Indian and Alaska Native Children Exposed to Violence is part of the Attorney General’s Defending Childhood initiative. The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety.
To read the entire report and for more information about the advisory committee and public hearings, please visit www.justice.gov/defendingchildhood.
Columbus Man Sentenced for Possession of Crack CocaineRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Derrick Dujuan Greathouse, 36, of Columbus, Ohio, was sentenced today in federal court in Charleston to 70 months imprisonment for possession of crack cocaine with intent to distribute. Greathouse entered a guilty plea in June of 2014, admitting that he possessed approximately more than 200 grams of cocaine base for distribution in Charleston. Officers found the cocaine base in a rental car Greathouse was driving. Officers also found nearly $15,000 in cash that Greathouse admitted was drug proceeds. At the time of his arrest, Greathouse was on parole for a second degree murder conviction out of Wood County.
This case was investigated by the Metropolitan Drug Enforcement Network Team and the South Charleston Police Department.
Chicago Man Charged with Additional Bank Robberies in Huntley and PeotoneRead the Press Release
ROCKFORD — A Chicago resident is now facing three federal bank robbery charges, federal officials announced today. ADAM A. SANBORN, 29, of Chicago and formerly of Milton, Florida, was originally arrested on Sept. 10, 2014, and charged with the Aug. 23, 2014, robbery of the Byron Bank in Davis Junction, Illinois. The federal grand jury in Rockford returned an indictment against Sanborn on Sept. 23, 2014, charging him with that robbery.
Today, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, announced that the federal grand jury in Rockford returned a superseding indictment charging Sanborn with the robbery of the Byron Bank as well as the robbery of the First Community Bank and Trust in Peotone, Illinois, on Feb. 24, 2014, and the robbery of the Heartland Bank in Huntley, Illinois, on April 25, 2014. Sanborn will appear before U.S. Magistrate Judge Iain D. Johnston on Nov. 20, 2014, at 11:00 a.m. and be arraigned on all three charges contained in the superseding indictment. Sanborn has remained in custody since his initial arrest on Sept. 10, 2014.
United States Attorney Fardon praised the teamwork of the FBI and the Ogle County Sheriff’s Office, Huntley Police Department, and the Peotone Police Department in conducting the investigation.
Each bank robbery charge carries a maximum sentence of 20 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney John G. McKenzie.
The public is reminded that a superseding indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government will have the burden of proving guilt beyond a reasonable doubt.
Superseding Indicmemt