Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 25 September 2014
Eufaula Man Pleads Guilty to Methamphetamine DistributionRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that SEAN DEVAL WARRIOR a/k/a Sean G, age 33, of Eufaula, Oklahoma, pled guilty to Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C).
Charges arose from an investigation by the District 18 and District 25 Drug and Violent Crime Task Forces, Eufaula Police Department and the Drug Enforcement Administration. The defendant was indicted in August, 2014.
The Indictment alleged that on or about January 24, 2014, in the Eastern District of Oklahoma, SEAN DEVAL WARRIOR a/k/a Sean G, defendant herein, did knowingly and intentionally distribute a mixture or substance containing a detectable amount of methamphetamine, a Schedule II Controlled Substance.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not more than 20 years imprisonment and/or up to a $1,000,000.00 fine.
Assistant United States Attorney Rob Wallace represented the United States.
Eufaula Man Pleads Guilty to Firearm Possession in Furtherance of a Drug Trafficking OffenseRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that JAMES DEWAYNE MARSHALL, age 33, of Eufaula, Oklahoma, pled guilty to Possession of a Firearm in Furtherance of Drug Trafficking Offense, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Charges arose from an investigation by the Carter County Sheriff’s Department, the Ardmore Police Department, the United States Marshal Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The defendant was indicted in August, 2014.
The Indictment alleged that on or about February 5, 2014, within the Eastern District of Oklahoma, JAMES DEWAYNE MARSHALL, did knowingly possess a Ruger, model P95, 9mm caliber pistol, in furtherance of a drug trafficking crime for which he may be prosecuted in a court of the United States, that is, Possession of a Controlled Substance with Intent to Distribute.
The Honorable Stephen P. Shreder, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is not less than 5 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Edward Snow represented the United States.
Eufaula Man Pleads Guilty to CounterfeitingRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that RICKY ELLIS LAMB, age 33, of Eufaula, Oklahoma, pled guilty to Possession and Uttering a Counterfeit Security, in violation of Title 18, United States Code, Section 513(a).
Charges arose from an investigation by the United States Secret Service. The defendant was indicted in June, 2014.
The Indictment alleged that on or about July 18, 2012 in the Eastern District of Oklahoma, RICKY ELLIS LAMB, defendant herein, knowingly possessed, uttered and caused to be uttered counterfeit securities, a counterfeit check on the account of Compass Assembly of God, Inc., made payable to Staples in the amount of $844.16, and drawn on Citizens Security Bank, an organization which operates in interstate commerce, with intent to deceive another.
The Honorable Stephen P. Shreder, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
The statutory range of punishment is up to 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Edward Snow represented the United States.
Erik R. Szczesh Sentenced to 51 Months in Federal Prison for Distribution of Child PornographyRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 25, 2014, Erik Szczesh, 28, of Cleveland, Tenn., was sentenced to serve 51 months in prison by the Honorable Curtis L. Collier, U.S. District Judge.
Upon his release from prison, Szczesh will be under the supervision of the U.S. Probation Office for 10 years. He will also be subject to numerous special conditions of release which restrict his access to children and the internet.
Nashville police seized the phone of an individual who was taking pictures of children as they walked to and from school. Upon examination of the individual’s phone, they found the he had been trading child pornography with Szczesh. They also recovered a text conversation between Szczesh and this individual discussing abusing children.
Police subsequently searched Szczesh’s phone and found a total of 403 pornographic images of children and seven videos of the same, which, under the law, amounts to 928 images. When questioned by police Szczesh immediately confessed. He has agreed to pay restitution in an amount of $500.00 per victim, for a total of $3,000.
The indictment and subsequent conviction of Szczesh was the result of an investigation conducted by the Federal Bureau of Investigation. Assistant United States Attorney James T. Brooks represented the United States in the prosecution.
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.”
Department of Justice Files Statement of Interest in New York State Right to Counsel CaseRead the Press Release
The Department of Justice today filed a statement of interest with the Supreme Court of the State of New York, Albany County in Hurrell-Harring v. State of New York. In this class action litigation, the plaintiffs allege that, due to systemic failures in four New York counties, indigent criminal defendants have been constructively denied the right to counsel.
In Hurrell-Harring the plaintiffs allege that a lack of funding for indigent defense deprives public defenders of the time or resources to prepare cases or meaningfully represent their clients and amounts to the denial of counsel in violation of Gideon v. Wainwright and the Sixth Amendment. In its statement of interest, the department advised the court that under resourcing public defense may force even otherwise competent and well-intentioned public defenders into a position where they are, in effect, a lawyer in name only. The statement of interest added that if the court finds that the plaintiffs have been constructively denied the right to counsel on a systemic basis, the court has broad injunctive authority to remedy those constitutional violations.
“To truly guarantee adequate representation for low-income defendants, we must ensure that public defenders’ caseloads allow them to do an effective job,” said Attorney General Eric Holder. “The Department of Justice is committed to addressing the inequalities that unfold every day in America’s courtrooms, and to fulfilling the Supreme Court’s historic decision in Gideon v. Wainwright. America’s indigent defense systems exist in a state of crisis, and over 50 years after it was made, the promise of Gideon is not being met.”
“This case is emblematic of a national crisis in indigent criminal defense,” said Acting Assistant Attorney General Molly Moran of the Civil Rights Division. “The right to counsel is one of the core guarantees of the Bill of Rights, and yet, as countless cases and studies show, indigent defense systems across the country are facing significant challenges in meeting their Sixth Amendment obligations.”
The purpose of the statement of interest is to provide the court with a framework to assess the plaintiffs’ claim of constructive denial of counsel. As the department explained in the statement of interest, “An analysis of Gideon cases informs the United States’ position that constructive denial of counsel may occur when: (1) on a systemic basis, counsel for indigent defendants face severe structural limitations, such as a lack of resources, high workloads, and understaffing of public defender offices; and/or (2) indigent defenders are unable or are significantly compromised in their ability to provide the traditional markers of representation for their clients, such as timely and confidential consultation, appropriate investigation, and meaningful adversarial testing of the prosecution’s case.”
The Hurrell-Harring case was filed in 2007 and brought by former indigent defendants who faced criminal charges in five New York counties. The plaintiffs seek systemic reform to prevent future violations of the right to counsel. The state court trial is scheduled to begin on Oct. 7, 2014.
Deltona Felon Sentenced to 7 Years in Federal Prison for Possessing A FirearmRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron sentenced Olajuwon Perry (28, Deltona) today to seven years in federal prison for being a felon in possession of a firearm. Perry pleaded guilty on June 24, 2014.
According to court documents, on December 23, 2012, in Sanford, Perry drove a Chevrolet Lumina in a reckless manner and failed to stop at a stop sign. When deputies from the Seminole County Sheriff’s Office attempted to stop him, Perry drove the car into the front yard of a residence. Perry, the sole occupant of the vehicle, exited and ran inside the residence. Deputies recovered a loaded AK-47 firearm from the front passenger seat of the vehicle. Perry claimed that he had not been driving the vehicle; however, authorities found his fingerprints in the car.
Perry had previously been convicted of multiple felony offenses prior to this incident, including convictions for robbery and battery upon a person 65 years or older. As such, he was prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Seminole County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by Assistant United States Attorney Andrew C. Searle.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Dallas Methamphetamine Distributor Is Sentenced to 235 Months in Federal PrisonRead the Press Release
DALLAS — Angel Escobedo, 29, a methamphetamine distributor who was selling drugs in the Dallas area was sentenced yesterday in federal court. Escobedo was sentenced by U.S. District Judge Jane J. Boyle to 235 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Escobedo will also be required to forfeit firearms seized during his arrest.
Escobedo was charged in a drug conspiracy that was outlined in a federal indictment returned by a grand jury in Dallas in November 2013. Escobedo pleaded guilty in March 2014 to one count of conspiracy to distribute a controlled substance.
According to documents filed in the case, on November 6, 2013 Escobedo was approached in the lobby of the Super 8 Motel located at 8901 E. RL Thornton Freeway, Dallas by law enforcement officers who were looking for an individual on an outstanding warrant. Officers located a .40 caliber handgun during a pat down of Escobedo and a .380 caliber handgun during a search of his vehicle.
Escobedo admitted to staying at a room at the Super 8 Motel. A search of the motel room revealed various drug paraphernalia items, and over 700 grams of methamphetamine.
The Texas Department of Public Safety Criminal Investigations Division (DPS-CID) was in charge of the investigation. DPS-CID were assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Marshal Service and the Dallas Police Department.
Assistant U.S. Attorney Phelesa Guy was in charge of the prosecution and Assistant U.S. Attorney John de la Garza handled the forfeiture.
Dallas Man Sentenced to 324 Months in Federal Prison for Committing Armed Robberies of Dallas-Area BusinessesRead the Press Release
DALLAS — Darren Lewis, 45, who admitted committing the armed robberies of several businesses in the Dallas area in 2012-2013, was sentenced today by U.S. District Judge Jane J. Boyle to 324 months (27 years) in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
In May, Lewis pleaded guilty to three counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. In July, co-defendant Christopher Washington pleaded guilty to two counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. Washington is scheduled for sentencing November 2014.
According to documents filed in the case, on October 30, 2012, Lewis entered a Hampton Inn and Suites in Desoto, Texas, inquired about room rates, looked around the lobby, and then left the hotel. Immediately afterwards, Washington entered the lobby and requested a room. He then pulled out a firearm, pointed it at the desk clerk, and demanded cash. Fearing for her life, the clerk complied. Washington then left the hotel and got into a waiting Ford expedition, driven by Lewis.
On November 6, 2012, Washington entered a La Quinta Inn in Cedar Hill, Texas, approached a desk clerk, displayed a shotgun, and while pointing it at the clerk, demanded money. The clerk complied and Washington left and got into a dark colored car, parked outside of the hotel lobby, driven by Lewis.
On January 28, 2013, Lewis entered a 7-Eleven store in Dallas, grabbed a candy bar from a shelf and then pulled out a silver handgun, pointed it at the clerk, and demanded money from the cash register. In fear for his life, the clerk complied. Lewis then fled the store and drove away in a maroon Ford Expedition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dallas, Duncanville, Desoto and Cedar Hill Police Departments investigated the case. Assistant U.S. Attorney Taly Haffar prosecuted.
Cuban National Sentenced to Eighty-Six Months in Federal Prison for Violating Firearms LawsRead the Press Release
ALBUQUERQUE – Alberto Sanchez, 51, a Cuban national residing in Albuquerque, N.M., was sentenced this afternoon to 86 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm and ammunition. Sanchez was convicted of this offense based on a guilty plea entered on Feb. 26, 2014.
Sanchez was arrested in July 2013, on an indictment charging him with possession of a handgun and ammunition in Bernalillo County, N.M., on July 19, 2012. At the time, Sanchez was prohibited from possessing firearms or ammunition because previously he had been convicted of three drug trafficking offenses in 1998; a drug trafficking offense in 2003; and two aggravated battery offenses in 2007 in the 2nd Judicial District Court for the State of New Mexico
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Bernalillo County Sheriff’s Office, with assistance from the 2nd Judicial District Attorney’s Office, and was prosecuted by Assistant U.S. Attorney Louis E. Valencia.Sanchez was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Convicted Bank Robber on Federal Supervised Release Ordered Detained in Westerly Bank RobberyRead the Press Release
PROVIDENCE, R.I. –Lawrence M. Sullivan, 38, was ordered detained today by U.S. District Court Magistrate Judge Lincoln D. Almond, charged with allegedly robbing a branch office of the Washington Trust Company in Westerly on September 15, 2014, announced United States Attorney Peter F. Neronha and Westerly Police Chief Edward W. St. Clair.
Sullivan is charged with one count of bank robbery.
According to court records, Sullivan allegedly approached a teller at the Washington Trust Company branch office, located inside a supermarket, and demanded cash. According to a teller, Sullivan threatened to “start shooting” if his demands were not met. No weapon was shown.
On September 16, 2014, Sullivan was arrested by Groton, Ct., police after he was discovered hiding inside a storage closet inside a local motel. Sullivan was returned to Rhode Island where he has been held in state custody.
According to court records, at the time of his arrest, Sullivan was serving a term of 3 years federal supervised release, having recently completed serving a 63-month federal prison sentence imposed in February 2010 for robbing two banks in Connecticut and one in Maine in 2008 and 2009. He pleaded guilty in U.S. District Court in New Haven in December 2009 to two counts of bank robbery.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
The FBI and the Groton, Ct., Police Department assisted the Westerly Police Department in the investigation of this matter.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Columbus Woman Convicted of Cashing Stolen Treasury ChecksRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that on September 25, 2014, Wytrenia Reynolds, aged 44, of Columbus, Georgia, was convicted in United States District Court for four counts of theft of government property, two counts of aggravated identity theft, and three counts of possession of stolen United States Treasury checks. The guilty verdict is the result of a four-day trial held in Columbus, Georgia.Evidence presented at trial showed that in September 2010, Ms. Reynolds cashed or attempted to cash three stolen treasury checks at Navy Federal Credit Union in Columbus, Georgia. All three of these checks were payable to individuals living in the metro Atlanta, Georgia area. All three checks bore forged endorsements and were presented by Ms. Reynolds without the permission or authority of the intended recipient.
In October and November of 2010, Ms. Reynolds cashed thirteen stolen Treasury checks at a package store in Columbus, Georgia. The payees for these checks primarily were residents of the Atlanta, Georgia area, although two lived Alabama.
In January 2011, agents recovered three stolen Social Security checks in a vehicle leased by Ms. Reynolds. These checks were payable to elderly victims living in Thomaston, Georgia, and Ellenwood, Georgia.
In addition to the checks listed above, other government checks were found in Ms. Reynolds’ possession which were determined to be stolen by a worker or workers at the United States Post Office in Atlanta, Georgia. The total face value of the checks possessed, cashed, or attempted to be cashed by Ms. Reynolds was approximately $515,000.
Following her conviction, United States District Court Judge Clay D. Land ordered that Ms. Reynolds immediately be taken into custody pending sentencing, which is scheduled for January 27, 2015.
Both theft of government property and possession of stolen Treasury checks are punishable by up to ten years imprisonment and a $250,000 fine for each count of conviction. Aggravated identity theft is punishable by a mandatory two years in prison, which must be served consecutively to any other sentence imposed.
U.S. Attorney Michael Moore said, “Identity theft is an ever-increasing problem across the
country. Victims have their lives invaded in a way that often causes long lasting financial
consequences; businesses are forced to implement costly security procedures; and consumers are left looking over their shoulders for fear that someone has stolen their personal information. With every check that is issued or every credit card that is swiped, we are vulnerable to criminals who are willing to steal our personal information for their own gain. As we put our resources into these cases, we are sending the message that if prosecuting identity thieves is a way to protect other victims, then that is exactly what my office will do.”Special Agent in Charge Thomas Caul, Office of the Inspector General, Social Security Administration stated, “Social Security payments are a lifeline for many Americans who are unable to work due to a temporary or permanent disability. Our office is gratified by the U.S. Attorney’s shared commitment to investigate and prosecute those who defraud Social Security trust funds. One of our highest priorities is ensuring that those who steal SSA payments are swiftly detected and prosecuted. Social Security fraud affects all Americans. The individual convicted today is a testament to our serious commitment to pursuing those who would victimize Social Security beneficiaries."
“The Secret Service remains committed to protecting our nation’s financial security, to include aggressively investigating those responsible for stealing and cashing United States Treasury checks. Along with our law enforcement partners we will continue to pursue those committing these crimes,” said Clint A. Bush, Resident Agent in Charge, Albany, Georgia Resident Office, United States Secret Service.
The case was investigated by Special Agent Teresa Hudson of the United States Secret Service and Special Agent Pablo Griffiths of the Social Security Administration, Office of the Inspector General. Assistant United States Attorney Mel Hyde prosecuted the case for the Government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.Chinese National Sentenced for Skimming Customers’ Credit Card Numbers at Loudoun County RestaurantvRead the Press Release
ALEXANDRIA, Va. – Yaoliang Gao, 23, of Flushing, New York, was sentenced today to 30 months in prison, followed by three years of supervised release for one count of possessing 15 or more unauthorized access devices.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Kathy Michalko, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office; and Terry Sheffer, Detective for Loudoun County Sheriff’s Office, made the announcement after sentencing by U.S. District Judge James C. Cacheris.
Gao pled guilty on July 3, 2014. According to court documents, from March 11, 2014 to April 8, 2014, Gao was employed as a waiter at Moca Asian Bistro in Chantilly, Virginia. When customers gave Gao their credit cards to pay for their meals, the defendant swiped the customer’s card through a credit card skimming device, which captured the customer’s card information from the magnetic strip. Prior to beginning his employment, Gao met an individual who gave him the skimmer and agreed to pay him $50 for every credit and debit card number he captured.
On April 8, 2014, Gao was caught in the act by a customer who observed him using the skimming device to illegally obtain his credit card information. Loudoun County Sheriff’s Deputies were dispatched to the location and took possession of the device, which was discovered to contain 598 unique credit card numbers. As a result of Gao’s actions, financial institutions lost $8,429. In addition, Gao, who is a Chinese citizen, overstayed his F-1 Student Visa.
The investigation was conducted by the U.S. Secret Service’s Washington Field Office, with assistance from the Loudoun County Sheriff’s Office. Special Assistant U.S. Attorney Jennifer Ballantyne prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-218.
Chemical Company in Kansas City, Kan. Ordered to Pay $1.5 Million Fine for Mishandling Hazardous WasteRead the Press Release
KANSAS CITY, KAN. – A chemical company with a plant in Kansas City, Kan., pleaded guilty and was sentenced Thursday to pay a $1.5 million fine for violating a federal law regulating the storage of hazardous waste, U.S. Attorney Barry Grissom said. The company will serve two years on federal probation.
Harcros Chemicals Inc., 5200 Speaker Road in Kansas City, Kan., pleaded guilty to one count of storing hazardous waste without a permit.
Harcros manufactures industrial chemicals including surfactants, emulsifiers, antifoaming agents and custom organics. In addition to its manufacturing, the company operated eight laboratories for the development and testing of new chemical products.
In its plea, the company admitted that from at least May 5, 2006, through Jan. 30, 2009, the company stored waste chemicals including phosgene solution, ethylenediamine, 1,4-dioxane, butyl acrylate, acrylic acid and methacrylate at the facility. The company did not have a permit to store hazardous waste for more than 90 days as required by the Resource Conservation and Recovery Act.
“EPA’s commitment to protect the environment includes bringing to justice those who, in the course of breaking the law, disregard the harm they pose to public health,” said Michael Burnett, Special Agent in Charge of EPA’s criminal enforcement program in Kansas. “The defendant’s illegal storage practices threatened groundwater supplies and put employees and the public at serious risk. Today’s plea demonstrates that those who knowingly engage in criminal activity must be willing to face the consequences in court.”
Grissom commended the Environmental Protection Agency – Criminal Investigation Division, the Kansas Department of Health and Environment, Jennifer A. Whitfield, Senior Trial Attorney, Department of Justice Environment and Natural Resource Division, Environmental Crimes Section, and Assistant U.S. Attorney Tris Hunt for their work on the caseChattanooga Man Sentenced to 108 Months for Attempted Armed Robbery of Jewelry StoreRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 25, 2014, Diontre Danforth, 19, of Chattanooga, Tenn., was sentenced to serve 108 months in federal prison by the Honorable Curtis L. Collier, U.S. District Judge. Upon his release from prison Danforth will be subject to the supervision of the U.S. Probation Office for three years. There is no parole in the federal system.
Danforth pleaded guilty in June 2014 to aiding and abetting the brandishing of a firearm during and in relation to a crime of violence and an attempted Hobbs Act robbery. In his plea agreement on file with the U.S. District Court, Danforth admitted that he and co-defendant Gerald Jackson attempted to rob the Kennedy Jewelry store in August 2013. Jackson entered the store wearing a “Scream” mask. He was armed with an assault rifle, which he immediately used to fire a round towards the back of the store, where multiple employees and a customer were standing. Danforth had followed Jackson into the store with a laundry basket and pillowcase outstretched in his hands, which the two had planned to use to collect the merchandise that they intended to steal. However, before they were able to get any jewelry, one of the store’s managers began firing back at Jackson. Jackson and Danforth then sprinted for their own safety, with Jackson continuing to fire back at the store even after the two were outside. Jackson has also been charged and is in custody pending trial in U.S District Court, Chattanooga.
Law enforcement agencies participating in the investigation included the Chattanooga Police Department and Federal Bureau of Investigation. Special Assistant U.S. Attorney Meredith J. Edwards represented the United States.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
Brooklyn Man Charged with Facilitating $6 Million Food Stamp Fraud in New YorkRead the Press Release
A criminal complaint was unsealed earlier this week in federal court in the Eastern District of New York charging Fowzi Naji Tareb with misappropriating government permits from the United States Department of Agriculture, Food and Nutrition Service and facilitating more than $6 million in unauthorized food stamp transactions. Tareb was arrested on Tuesday and his initial appearance was held before United States Magistrate Judge Vera Scanlon at the federal courthouse in Brooklyn.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and William Squires, Special Agent-in-Charge, Northeastern Region, United States Department of Agriculture, Office of Inspector General.
The federal government, through the United States Department of Agriculture, Food and Nutrition Service (FNS), administers the Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program. SNAP utilizes federal tax dollars to subsidize low-income households, affording such households the opportunity to achieve a more nutritious diet by increasing their food-purchasing power.
In New York, individuals who receive SNAP benefits (recipients) no longer redeem their benefits by using paper food stamp coupons, but rather redeem them electronically through the use of an Electronic Benefits Transfer (EBT) card, which operates much like ATM cards used by banks. The EBT cards may be used by recipients to purchase eligible food items at retail food stores that are authorized by FNS to participate in SNAP and have EBT terminals located in the stores. As a purchase is made, the retailer runs the EBT card through the terminal, and the amount of the purchase is deducted from the recipient’s EBT card. The purchase amount is then electronically credited to the retail food store owner’s bank account.
SNAP benefits may be accepted by authorized retailers only in exchange for eligible food items. Items such as beer, cigarettes, paper goods, and soaps are not eligible for purchase. SNAP benefits may not lawfully be exchanged for cash under any circumstances and may not lawfully be used to pay off credit accounts. SNAP benefits may be accepted only by retailers authorized to participate in SNAP by FNS.
The defendant Tareb allegedly used his position as an agent at Century Payments, a third-party vendor and distributor of EBT terminals, to provide EBT terminals capable of processing SNAP benefits and authorization codes to more than 25 retailers that were not authorized by FNS to accept SNAP benefits. In doing so, the defendant facilitated more than $6 million in unauthorized SNAP transactions. A number of the retail locations, which were searched by law enforcement over the past two days, are also alleged to have been involved in the unlawful exchange of SNAP benefits for cash.
“The government’s food stamp program enables law-abiding retailers to provide food and other essentials to low-income households and receive compensation from the government,” stated United States Attorney Lynch. “The defendant manipulated that program by misappropriating EBT terminals and codes of authorized retailers and giving them to unauthorized retailers -- allowing them to profit by engaging in millions of dollars in under-thetable transactions.” Ms. Lynch also thanked the New York City Police Department for assisting in the investigation.
If convicted, the defendant faces a maximum sentence of 10 years of imprisonment. The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Assistant United States Attorney Saritha Komatireddy.
The Defendant:
FOWZI NAJI TAREB
Age: 43
Brooklyn, New York
E.D.N.Y. Docket No. 14-M-806
Batesburg Woman Sentenced for Wire Fraud and Tax EvasionRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ---- William N. Nettles, United States Attorney for the District of South Carolina announced today that Chandra Padgett, 46 of Batesburg, South Carolina, was sentenced to 87 months incarceration for her conviction on charges of wire fraud and tax evasion. Padgett was an office manager and bookkeeper for Advanced Pain Therapies (APT), a clinic in Irmo, SC. Facts presented during Ms. Padgett’s guilty plea explained that she set up a shell company named PSS (Padgett Specialty Scrapbooking Services). The name PSS was shared with APT’s primary vendor and allowed Padgett to send APT bogus invoices for payment. Between June 2008 and December 2010, Padgett created checks made payable to her company PSS and deposited them in to an account to which she had primary control. During this time, Padgett also made payments to her personal credit cards using APT funds and wrote unauthorized checks to family members for personal expenses. Padgett also used her position as bookkeeper and office manager to increase her own salary without her employer’s authorization or knowledge. According to a forensic accounting performed by APT, Padgett stole approximately $1,941,455.96 from APT. Facts presented during the sentencing hearing indicated that Padgett used the stolen money to finance an extravagant wedding and a lifestyle filled with expensive vacations, gifts and even an expensive New York apartment. Padgett was ordered to pay restitution to her employer and the Internal Revenue Service. Padgett is subject to forfeiture of her assets to satisfy the judgment against her.
The investigation and convictions were pursued by the Internal Revenue Serviceand was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.Attorney Convicted of Laundering Drug MoneyRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal jury in New Haven has found RALPH CROZIER, 62, an attorney based in Seymour, guilty of money laundering offenses. The trial before Chief U.S. District Judge Janet C. Hall began on September 16 and the jury returned its verdict this afternoon.
According to the evidence introduced during the trial, law enforcement began investigating CROZIER after receiving information from a convicted narcotics trafficker who was in federal custody. The narcotics trafficker stated that he was a former client of CROZIER and that CROZIER had convinced him to invest $30,000 in cash into CROZIER’s law partner’s solar energy company. CROZIER knew that the cash was derived from his client’s narcotics trafficking activities.
In 2013, the narcotics trafficker’s mother agreed to wear a recording device while meeting with CROZIER to discuss her son’s prior investment. On April 11, 2013, the woman brought $11,000 in DEA funds to a meeting with CROZIER, representing that her son had hidden the cash and wanted her to bring it to CROZIER. The conversation during the meeting made it clear that the money had been illegally derived from drug dealing. CROZIER accepted the cash and told the woman that he was going to make out the receipt in her son’s name, stating “I don’t want to put your name on anything because I don’t want you involved with hiding things from the Feds.” CROZIER was arrested shortly after the woman left his office.
CROZIER was convicted of one count of conspiracy to launder monetary instruments and one count of attempt to launder monetary instruments. Each charge carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.
Chief Judge Hall scheduled sentencing for December 18, 2014.
CROZIER is currently released on a $200,000 bond.
This case was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area Task Force and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert Spector, and Special Assistant U.S. Attorney Charles Rombeau.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Armed Robber Sentenced to Nine Years in Prison for Robbing Seven Convenience Stores During an Eight Day SpreeRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Monte Glascoe , age 24, of Baltimore, today to nine years in prison, followed by five years of supervised release, for robbery and brandishing a gun in furtherance of robbery. Judge Quarles also ordered Glascoe to pay restitution to the victims totaling $2,625.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, from July 18 to 26, 2013, Glascoe and co-defendants Gary Howard and Michael Emmanuel Smith robbed at least seven Baltimore 7-Eleven stores, located at: 6314 Eastern Avenue; 3436 Wilkens Avenue; 5512 Park Heights Avenue; 2500 Liberty Heights Avenue; 6700 Brentwood Avenue; 211 West 28th Street; and 3204 Hollins Ferry Road. Glascoe, Howard and Smith would choose a store to rob, steal a vehicle to use during the robbery; brandish a firearm during the robbery; and steal money and cigarettes during the robbery. In each robbery, Glascoe pointed a gun at victim employees. The conspirators stole money from the cash registers, cigarettes and other merchandise, and stole cash, a cell phone and folding knife from employees at the stores.
Gary Howard, age 34, and Michael Emmanuel Smith, age 28, both of Baltimore, previously pleaded guilty to their participation in the robberies. Howard was sentenced to 235 months in prison on September 2, 2014 and Smith is scheduled to be sentenced on October 1, 2014, at 1:00 p.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 Matthew K. Hoff, a cross-designated Baltimore City Assistant State’s Attorney assigned as part of the Baltimore initiative to combat violent crime, who prosecuted the case.
Wednesday 24 September 2014
Wellsville Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Jason W. Patterson, 38, of Wellsville, N.Y., who was convicted of conspiracy to manufacture, possess with intent to distribute and distribute, 50 grams or more of methamphetamine, was sentenced to 151 months in prison and ordered to pay $3,143 in restitution to the New York State Department of Environmental Conservation by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that on January 26, 2012 law enforcement officers executed a search warrant at a residence on South Main St. in Wellsville. Officers discovered items used to manufacture methamphetamine as well as a quantity of methamphetamine. A subsequent search warrant executed at a residence on Madison Ave. in Wellsville led to the discovery of active methamphetamine laboratory. The court’s restitution amount was to repay the government for costs associated with the environmental clean-up of this laboratory.
The defendant was arrested along with his wife April Patterson, Anthony Kidd, John Faber and Justin McPherson. April Patterson was sentenced to 30 months in prison; John Faber 40 months; and Justin McPherson 24 months. Anthony Kidd will be sentenced on November 5, 2014.
Today’s sentencing is the result of an investigation on the part of the New York State Police, under the direction of Major Michael Cerretto, the Wellsville Police Department, under the direction of Chief Timothy O’Grady, and the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division.Wellpinit Man Sentenced to Federal Prison for Violent AssaultRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Richard James Peone, age 21, of Wellpinit, Washington, was sentenced after having previously pleaded guilty in May, 2014 to one count of Assault With a Dangerous Weapon. Senior United States District Court Judge Justin L. Quackenbush sentenced Peone to a thirty-nine month term of imprisonment, to be followed by three years of court supervision after he is released from Federal prison.
According to information disclosed during the court proceedings, on August 13, 2012, Peone and others picked up the victim and drove him to a remote location on the Spokane Indian Reservation, where the victim was assaulted. The assault was in retaliation for a previous drug transaction that involved the victim.
Michael C. Ormsby stated, “Violence committed in relation to drug trafficking will not be tolerated in the Eastern District of Washington, particularly such violent acts that are committed on an Indian reservation. I commend the Spokane Tribal Police and the FBI for their cooperative and diligent efforts in investigating this case.”
This investigation was conducted by FBI and the Spokane Tribal Police Department. The case was prosecuted by Rudy J. Verschoor, an Assistant United States Attorney for the Eastern District of Washington.
CR-14-CR000070-JLQ
Waterbury Felon Admits Illegal Gun PossessionRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that CHRISTOPHER BRYAN COLEMAN, 25, of Waterbury, pleaded guilty yesterday in New Haven federal court to one count of possession of a firearm by a previously convicted felon.
According to court documents and statements made in court, on April 22, 2014, officers from the Waterbury Police Department responded to a complaint of a disturbance at 1298 N. Main Street in Waterbury. There, the complainant told police that her car had broken down and, while she was awaiting assistance, a male had attempted to gain entry to her vehicle. As one of the officers drove up to the male, who was later identified as COLEMAN, the officer observed COLEMAN remove a firearm from his waist area and throw it over a chain link fence. Officers then recovered an RG14 .22 caliber revolver with an obliterated serial number, loaded with six rounds, three of which were live and three of which were expended.
Prior to that date, COLEMAN had sustained felony convictions, including sale of a controlled substance, escape in the first degree, and possession of a controlled substance with intent to distribute.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
COLEMAN is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on December 22, 2014, at with time he faces a maximum term of imprisonment of 10 years and a fine of up to $250,000 in fines. He has been detained since his arrest on April 22.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Waterbury Police Department. This case is being prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Virginia Beach Concert Promoter Sentenced to 41 Months for Fraud SchemeRead the Press Release
RICHMOND, Va. – Kensey Lamonte Wright, 43, of Virginia Beach, Virginia, was sentenced today to 41 months in prison, followed by 3 years of supervised release, for wire fraud. Wright was also ordered to pay $940,600 in restitution to his victims.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Joseph Morrison, Assistant Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after sentencing by Senior United States District Judge James R. Spencer.
Wright pled guilty on June 10, 2014. According to court documents, between January 2007 and December 2013, he acted as a representative of Fifth Degree Tours #1, Inc., Fifth Degree Records, Inc., and Turnwright Enterprises, Inc. In that capacity, Wright solicited individuals in Virginia and elsewhere to invest in concerts, tours, and similar entertainment events to be held throughout the United States.Wright promised returns as high as 100% within just two weeks to two months, and represented to investors that their funds would be used to produce and promote entertainment events, including ones featuring Prince, Beyoncé, Jay Z, R Kelly, and TLC, among others. Rather than use the investment funds as he had promised, Wright used the vast majority of the funds for his personal benefit, including for gambling and other expenses at various casinos.
As a result of Wright’s ongoing scheme to defraud, investors lost $940,600.
This case was investigated by the United States Secret Service. Assistant United States Attorneys Dominick S. Gerace and Michael Gill are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:13CR143.
Two Honduran Nationals, Sentenced for Conspiracy, Aggravated Identity TheftRead the Press Release
United States Attorney Kenneth Polite and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division announced today that YONI PERDOMO, 35, was sentenced to 38 months in prison for conspiracy to defraud the United States by filing false income tax returns and for aggravated identity theft. In addition, SANTOS MARTIN HERNANDEZ, 41, was sentenced to 24 months in prison for his role in the conspiracy to defraud the United States. The defendants were further ordered to pay restitution and to serve terms of supervised release.
Both defendants have been detained since their arrest, and as Honduran nationals they face possible deportation following the completion of their sentences. They were charged with being part of a multi-jurisdictional conspiracy to file false income tax returns. To date, 16 defendants have entered guilty pleas to various charges in the case, including JACQUELINE J. ARIAS, a tax return preparer in Spruce Pine, Alabama, who is pending sentencing.
According to the indictments in this case, the conspirators filed false returns listing Individual Taxpayer Identification Numbers (ITINs). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who do not have, and are not eligible to obtain, a social security number. As alleged in the indictments, ARIAS was a certified acceptance agent, entrusted by the IRS with the responsibility of reviewing the documentation of an ITIN applicant’s identity and alien status for authenticity, completeness and accuracy before submitting their application to the IRS. The indictments charged that ARIAS and her coconspirators filed false applications for ITINs, in addition to false income tax returns, and that ARIAS collected preparation fees from the fraudulently-obtained tax refunds. According to the second superseding indictment, the conspirators purchased identification documents from overseas and Forms W-2 from other aliens illegally present in the United States for use in filing false income tax returns with ARIAS.
The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; IRS-Criminal Investigation; the U.S. Secret Service; the U.S. Postal Inspection Service; and the Social Security Administration, Office of the Inspector General, in partnership with the St. Tammany Parish and Jefferson Parish Sheriffs’ Departments. The case was prosecuted by Trial Attorneys Hayden Brockett and Kevin Lombardi of the Justice Department’s Tax Division and Assistant U.S. Attorney David Haller.
Tulsa Man Sentenced to More Than 7 Years in Prison for Child Sex TraffickingRead the Press Release
TULSA, Okla. — Damian Deshane Wardell, a/k/a “Fray Fray,” 40, of Tulsa, was sentenced today by U.S. District Judge Claire V. Eagan to serve 92 months in federal prison on charges related to child sex trafficking, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
In February, a Federal Grand Jury charged Wardell by Indictment with crimes related to Sex Trafficking of a Child. He pleaded guilty on May 6, 2014.
According to court documents, Wardell admitted, from November 19 to 22, 2013, he prostituted a 16-year-old female at a Tulsa area motel. The victim’s mother alerted the Tulsa Police Department to her daughter’s whereabouts. Tulsa Police Department officers arrested Wardell and found the victim and two other juvenile females in the motel room.
The case was investigated by the Tulsa Police Department’s Vice Unit and prosecuted by Assistant U.S. Attorneys Trent Shores and Clinton Johnson on behalf of the United States.
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. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Third Colombian National Pleads Guilty to Kidnapping and Murder of DEA Agent Terry WatsonRead the Press Release
A third Colombian man extradited to the Eastern District of Virginia pleaded guilty today for his involvement in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson in Bogotá, Colombia, on June 20, 2013.
Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.
“This development marks yet another significant step forward in our effort to achieve justice for Special Agent Terry Watson, who gave his life in the service of his country,” said Attorney General Eric Holder. “This nation owes Special Agent Watson, and all of our fallen law enforcement personnel, a debt of gratitude we can never hope to repay. But we will never rest in our commitment to hold accountable all those responsible for his murder. That effort will continue. And his example will continue to guide and inspire us.”
Héctor Leonardo López, 34, pleaded guilty before U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing is scheduled for Dec. 12, 2014.
In a statement of facts filed with the plea agreement, López admitted that he and his conspirators agreed to conduct a “paseo milionario” or “millionaire’s ride” in which victims who were perceived as wealthy were lured into taxi cabs, kidnapped and then robbed. López admitted that he was part of the group of individuals that targeted and picked up Special Agent Watson, outside of a restaurant in Bogotá. Soon after, two conspirators entered the taxi carrying Special Agent Watson, and one used a stun gun to shock Special Agent Watson and the other stabbed him. Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries. López admitted that he drove the second taxi, which carried the two individuals who attacked Special Agent Watson. López also admitted that part of his role in the robbery crew was to receive stolen bank cards and use them at various banks to take out money.
Six other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson. Gerardo Figueroa Sepúlveda, 39; Omar Fabián Valdes Gualtero, 27; and Édgar Javier Bello Murillo, 27, are each charged by indictment with second degree murder, kidnapping and conspiracy to kidnap. Wilson Daniel Peralta Bocachica, 31, was charged for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.
On Sept. 3, 2014, Julio Estiven Gracia Ramírez, 31, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing for Gracia Ramírez is scheduled for Dec. 5, 2014. On Sept. 17, 2014, Andrés Álvaro Oviedo García, 22, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person. Sentencing is scheduled for Dec. 12, 2014.
Trial for the remaining defendants is set for Jan. 12, 2015.
The charges in the indictment against the other defendants are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from Interpol and the Justice Department’s Office of International Affairs. The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.
The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.
# # #
Texas Businessman Sentenced to 27 Months in Prison for Carrying Out Nearly $1.7 Million Fraud Scheme-Defendant Kept Proceeds of Business Loan for Personal Benefit-Read the Press Release
WASHINGTON – Arnold Rojas Rivas, 46, a businessman from San Antonio, Texas, was sentenced today to 27 months in prison for a scheme in which he defrauded a federal agency and a private company of nearly $1.7 million, announced U.S. Attorney Ronald C. Machen Jr. and Andrew G. McCabe, Assistant Director of the FBI’s Washington Field Office.
Rojas pled guilty in January 2014 in the U.S. District Court for the District of Columbia to wire fraud. He was sentenced by the Honorable Robert L. Wilkins. Upon completion of his prison term, Rojas will be placed on three years of supervised release. He also was ordered to pay $1,655,925 in restitution and an identical amount in a forfeiture money judgment.
According to the government’s evidence, Rojas was the director of Corporativo Papelero y De Suministros Basicos, S.A. DE C.V. (COPASBA), a company based in Mexico that produced toilet paper and napkins for the Mexican market by converting large rolls of raw paper into final products. The company applied for, and obtained, access to a $10 million credit facility from a finance company based in Hartford, Conn. At the time that COPASBA applied for the credit facility, it was the fifth biggest producer of toilet paper and napkins in Mexico. Funds borrowed from this credit facility were supposed to be used to build a warehouse to house COPASBA’s product and to assist with the company’s general operations.
The credit facility was guaranteed by the Overseas Private Investment Corporation (OPIC), an agency of the U.S. government which has as one of its missions providing insurance, guarantees, financing, and reinsurance for projects in less developed countries and areas. Under the terms of the guarantee agreement, OPIC guaranteed 97.5% of any losses.
In order to obtain access to the funds, Rojas had to submit requests explaining how COPASBA would use the funds, and these requests required Rojas to make a number of representations about COPASBA’s financial condition. In mid-2006, COPASBA requested and received more than $6 million from the facility. In the months after receiving the last of these funds, COPASBA’s position weakened significantly: the company’s cash-on-hand plummeted, workers went on strike, and suppliers began refusing to do business with the company. The company’s condition became so bad during this time that Rojas ordered workers to disassemble the machines the company used to make its paper goods so the machines could be sold. By June 2007, COPASBA had essentially ceased functioning as a company.
Nevertheless, Rojas requested another disbursement of over $1.8 million for COPASBA, failing, in violation of the credit agreement, to inform the finance company or OPIC of the many problems the company had encountered. Unaware of the fact that COPASBA had ceased functioning, the finance company released over $1.8 million from the credit facility to COPASBA. Within moments of COPASBA receiving the funds, Rojas transferred nearly $1.7 million to his personal account. He used these funds for his and his family’s personal benefit.
In announcing the sentence, U.S. Attorney Machen and Assistant Director in Charge McCabe commended the work of those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tasha Harris, Lenisse Edloe, and Shanna Hays; former Assistant U.S. Attorney Matthew C. Solomon, who investigated the matter, and Assistant U.S. Attorney Diane Lucas, who handled forfeiture issues. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Matt Graves and former Acting Deputy Chief Glenn S. Leon and former Trial Attorney Mary Ann McCarthy of the Department of Justice’s Fraud Section, who investigated and prosecuted the matter.
14-217State Audit Director Sentenced to over 3 Years in Federal PrisonRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the sentencing of the former Director of the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS).
U.S. District Judge Shelley Dick sentenced DELRICE J. AUGUSTUS, age 35, of Baton Rouge, Louisiana, to 37 months imprisonment, 2 years of supervised release following imprisonment, restitution of $155,305.24 to DCFS, and forfeiture of $150,035 to the United States.
Augustus was sentenced following his conviction for stealing from a federally-funded entity, in violation of Title 18, United States Code, Section 666(a)(1)(A). Augustus served as the Director of the Bureau of Auditing and Compliance Services for DCFS, a state agency which receives over a billion dollars ($1,000,000,000) in federal funding annually. As Director, Augustus reported directly to the Secretary of DCFS and led the office responsible for safeguarding assets against theft and unauthorized use; ensuring that transactions were properly authorized and recorded properly; and ensuring compliance with management policies, as well as federal and state laws and regulations.
When he pled guilty, Augustus admitted to using his official position to defraud DCFS through the following means.
• Augustus admitted to fraudulently misusing government purchasing cards to obtain items for personal use for himself and others, including an installed dishwasher, televisions, movies, cameras, wireless audio systems, such as Sonos and Jawbone, gaming devices, such as Xboxes, Wii and Leapsters, mobile devices, such as I-Pads, Kindle Fires, and an I-Phone 5, Dyson vacuums, rental vehicles, hotel rooms, and fuel.
• Augustus admitted to misusing and causing others to misuse state travel and gas cards to pay for personal travel and entertainment expenses for himself and others, including gas, rental vehicles, and hotel stays. One such occasion involved purchasing hotel suites in New Orleans for Mardi Gras and the NBA All-Star Game.
• Augustus admitted to engaging in a scheme to create and use fraudulent documents to request and receive reimbursement from the State of Louisiana for official travel that did not occur. Augustus would sign and submit reimbursement claims for expenses he falsely claimed to have incurred as part of his official duties. Augustus would cause the signature of the Secretary of the Louisiana Department of Children and Family Services to appear on his fraudulent reimbursement claims as approving such claims, when, in fact, the Secretary had neither approved the claims nor authorized her signature to be used in such a manner. Augustus would also create fraudulent documents reflecting that C.P. and K.G., who were employees in the Auditor’s Office, had incurred certain expenses related to official travel. C.P. and K.G. would sign the fraudulent reimbursement requests as the requesting employees, and Augustus would sign as the approving supervisor. The State would pay the requested amount to C.P. and K.G. who would split the proceeds with Augustus.
U.S. Attorney Green stated: “It is a sad day when someone whose responsibility it is to safeguard and watch over hundreds of millions of dollars of federal funds is caught stealing from the very funds he is entrusted to protect. I commend DCFS leadership on their immediate action when the fraud became known to them. Such swift action and cooperation with law enforcement is imperative to ensuring that the occasional bad actor is addressed. I am grateful to our partners with the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation who worked seamlessly with our prosecutors to ensure today’s just result.”
Louisiana Inspector General Stephen Street commented: “This sentence should make it clear to anyone thinking about stealing from the taxpayers that they had better be prepared to go to jail for it. Together with our law enforcement partners, we will continue doing everything we can to make that happen.”
“The public demands that we as law enforcement professionals hold those that commit such crimes responsible,” stated Colonel Mike Edmonson, Superintendent of the Louisiana State Police. “The Louisiana State Police and all of our law enforcement partners are committed to ensuring that individuals in positions of trust are held to a higher standard.”
This matter is being handled by the United States Attorney’s Office, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. The matter is being prosecuted by First Assistant United States Attorney Corey R. Amundson, who serves as the Chief of the Criminal Division, and Special Assistant United States Attorney J. Brad Casey.
Shire Pharmaceuticals LLC to Pay $56.5 Million to Resolve False Claims Act Allegations Relating to Drug Marketing and Promotion PracticesRead the Press Release
Pharmaceutical company Shire Pharmaceuticals LLC will pay $56.5 million to resolve civil allegations that it violated the False Claims Act as a result of its marketing and promotion of several drugs, the Justice Department announced today. Shire, located in Wayne, Pennsylvania, manufactures and sells pharmaceuticals, including Adderall XR, Vyvanse and Daytrana, which are approved for the treatment of attention deficit hyperactivity disorder (ADHD), and Pentasa and Lialda, which are approved for the treatment of mild to moderate active ulcerative colitis.
“Patients and health care providers must receive accurate information about available prescription drugs so that they can make safe and informed treatment decisions,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “The Department of Justice will be vigilant to hold accountable pharmaceutical companies that provide misleading information regarding a drug’s safety or efficacy.”
The settlement resolves allegations that, between January 2004 and December 2007, Shire promoted Adderall XR for certain uses despite a lack of clinical data to support such claims and overstated the efficacy of Adderall XR, particularly relative to other ADHD drugs. Among the allegedly unsupported claims was that Adderall XR was clinically superior to other ADHD drugs because it would “normalize” its recipients, rendering them indistinguishable from their non-ADHD peers. Shire allegedly stated that its competitors’ products could not achieve similar results, which the government contended was not shown in the clinical data that Shire collected. Shire also allegedly marketed Adderall XR based on unsupported claims that Adderall XR would prevent poor academic performance, loss of employment, criminal behavior, traffic accidents and sexually transmitted disease. In addition, Shire allegedly promoted Adderall XR for the treatment of conduct disorder without approval from the Food and Drug Administration (FDA).
The settlement further resolves allegations that, between February 2007 and September 2010, Shire sales representatives and other agents allegedly made false and misleading statements about the efficacy and “abuseability” of Vyvanse to state Medicaid formulary committees and to individual physicians. For example, one Shire medical science liaison allegedly told a state formulary board that Vyvanse “provides less abuse liability” than “every other long-acting release mechanism” on the market. However, the government contended that no study Shire conducted had concluded that Vyvanse was not abuseable, and, as an amphetamine product, the Vyvanse label included an FDA-mandated black box warning for its potential for misuse and abuse. Shire also made allegedly unsupported claims that treatment with Vyvanse would prevent car accidents, divorce, arrests and unemployment.
Additionally, the settlement resolves allegations that from April 2006 to September 2010, Shire representatives improperly marketed Daytrana, administered through a patch, as less abuseable than traditional, pill-based medications, and, for part of this period, improperly made phone calls and drafted letters to state Medicaid authorities to assist physicians with the prior authorization process for prescriptions to induce these physicians to prescribe Daytrana and Vyvanse.
Finally, the settlement resolves allegations that between January 2006 and June 2010, Shire sales representatives promoted Lialda and Pentasa for off-label uses not approved by the FDA and not covered by federal healthcare programs. Specifically, the government alleged that Shire promoted Lialda off-label for the prevention of colorectal cancer.
"Marketing efforts that influence a doctor’s independent judgment can undermine the doctor-patient relationship and short-change the patient,” said U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania. “Where children’s medication is concerned, it can interfere with a parent’s right to clear information regarding the risks to the safety and health of their child. Shire cooperated throughout this investigation and, in advance of this settlement, began to correct its marketing activities.”
"This settlement represents another important step in our fight against fraud in federally-funded healthcare programs such as Medicare and Medicaid,” said U.S. Attorney Zachary T. Fardon for the Northern District of Illinois. “The Shire settlement returns funds not only to the U.S. government but also to the individual states whose health care programs rely in part on the efficacy of jointly-funded programs like Medicaid. We will continue doing everything in our power to combat fraud and ensure the integrity of our healthcare programs.”
As a result of today’s $56.5 million settlement, the federal government will receive $35,713,965, and state Medicaid programs will receive $20,786,034. The Medicaid program is funded jointly by the federal and state governments. In addition, Shire has separately reached agreement with the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) on a corporate integrity agreement, which will address the company’s future marketing efforts.
“Our agency will continue to hold drug companies responsible for seeking to boost profits using false and misleading claims about products, such as the powerful medications prescribed to children and other drugs at issue in this settlement,” said Chief Counsel to the HHS Inspector General Gregory E. Demske. “We entered into a corporate integrity agreement with Shire that requires comprehensive compliance safeguards, oversight of Shire promotional activities, and compliance certifications from Shire’s board of directors and management.”
The allegations resolved by the settlement arose from a lawsuit filed by Dr. Gerardo Torres, a former Shire executive, and a separate lawsuit filed by Anita Hsieh, Kara Harris and Ian Clark, former Shire sales representatives. The lawsuits were filed under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the government and to share in any recovery. Torres will receive $5.9 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of HHS. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was a cooperative effort among the U.S. Attorneys’ Offices for the Eastern District of Pennsylvania and the Northern District of Illinois, the Justice Department’s Civil Division, Office of the Inspector General for the Office of Personnel Management, HHS-OIG and the FDA. The HHS Office of the General Counsel-CMS Division and the National Association of Medicaid Fraud Control Units also provided assistance.
The lawsuits are captioned United States ex rel. Torres v. Shire Specialty Pharmaceuticals, et al., No. 08-4795 (E.D. Pa.) and United States ex rel. Hsieh, Harris, and Clark v. Shire PLC, et al., No. 09-6994 (N.D. Ill.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Shire Pharmaceuticals LLC to Pay $56.5 Million to Resolve False Claims Act Allegations Relating to Marketing, PromotionRead the Press Release
Shire Pharmaceuticals LLC to Pay $56.5 Million to Resolve False Claims Act Allegations
Relating to Drug Marketing and Promotion PracticesPharmaceutical company Shire Pharmaceuticals LLC will pay $56.5 million to resolve allegations that it violated the False Claims Act as a result of its marketing and promotion of several drugs, the Justice Department announced today. Shire, located in Wayne, Pennsylvania, manufactures and sells pharmaceuticals, including Adderall XR, Vyvanse, and Daytrana, which are approved for the treatment of attention deficit hyperactivity disorder (ADHD), and Pentasa and Lialda, which are approved for the treatment of mild to moderate active ulcerative colitis.
“Marketing efforts that influence a doctor’s independent judgment can undermine the doctor-patient relationship and short-change the patient,” said Zane David Memeger, U.S. Attorney for the Eastern District of Pennsylvania. “Where children’s medication is concerned, it can interfere with a parent’s right to clear information regarding the risks to the safety and health of their child. Shire cooperated throughout this investigation and, in advance of this settlement, began to correct its marketing activities.”
“Patients and health care providers must receive accurate information about available prescription drugs so that they can make safe and informed treatment decisions,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Joyce R. Branda. “The Department of Justice will be vigilant to hold accountable pharmaceutical companies that provide misleading information regarding a drug’s safety or efficacy.”
The settlement resolves allegations that, between January 2004 and December 2007, Shire promoted Adderall XR for certain uses despite a lack of clinical data to support such claims and overstated the efficacy of Adderall XR, particularly relative to other ADHD drugs. Among the unsupported claims allegedly made by Shire was that Adderall XR was clinically superior to other ADHD drugs because it would “normalize” its recipients, rendering them indistinguishable from their non-ADHD peers. Shire allegedly stated that its competitors’ products could not achieve similar results, which the Justice Department contended was not shown in the clinical data Shire collected. Shire also marketed Adderall XR based on claims that Adderall XR would prevent poor academic performance, loss of employment, criminal behavior, traffic accidents, and sexually transmitted disease. In addition, Shire promoted Adderall XR for the treatment of conduct disorder, an indication not approved by the Food and Drug Administration (FDA).
The settlement further resolves allegations that, between February 2007 and September 2010, Shire sales representatives and other agents also allegedly made false and misleading statements about the efficacy and abuse liability of Vyvanse to state Medicaid formulary committees and to individual physicians. For example, one Shire medical science liaison allegedly told a state formulary board that Vyvanse “provides less abuse liability” than “every other long-acting release mechanism” on the market. No study Shire conducted concluded that Vyvanse was not abusable, and, as an amphetamine product, the Vyvanse label included an FDA-mandated black box warning for its potential for misuse and abuse. Shire also made unsupported claims that treatment with Vyvanse would prevent car accidents, divorce, being arrested, and unemployment.
Additionally, the settlement resolves allegations that, from April 2006 to September 2010, Shire representatives improperly marketed Daytrana, administered through a patch, as less abusable than traditional, pill-based medications. The settlement also resolves allegations that, for part of the foregoing periods, Shire representatives improperly made phone calls and drafted letters to state Medicaid authorities to assist physicians with the prior authorization process for prescriptions to induce these physicians to prescribe Daytrana and Vyvanse.
Finally, the settlement resolves allegations that, between January 2006 and June 2010, Shire sales representatives promoted Lialda and Pentasa for off-label uses not approved by the FDA and not covered by federal healthcare programs. Specifically, the government alleged that Shire promoted Lialda off-label for the prevention of colorectal cancer.
As a result of today’s $56.5 million settlement, the federal government will receive $35,713,965, and state Medicaid programs will receive $20,786,034. The Medicaid program is funded jointly by the federal and state governments. In addition, Shire has separately reached agreement with the U.S. Department of Health and Human Services (HHS) Office of the Inspector General on a Corporate Integrity Agreement, which will address the company’s future marketing efforts.
The allegations resolved by the settlement arose from a lawsuit filed by Dr. Gerardo Torres, a former Shire executive, and a separate lawsuit filed by Anita Hsieh, Kara Harris, and Ian Clark, former Shire sales representatives. The lawsuits were filed under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the government and to share in any recovery. The relator share payment will be $5.9 million.“Our agency will continue to hold drug companies responsible for seeking to boost profits using false and misleading claims about products, such as the powerful medications prescribed to children and other drugs at issue in this settlement. We entered into a Corporate Integrity Agreement with Shire that requires comprehensive compliance safeguards, oversight of Shire promotional activities, and compliance certifications from Shire’s Board of Directors and management,” said Chief Counsel to the HHS Inspector General Gregory E. Demske.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of HHS. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $20.5 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case in this district is being handled by Assistant United States Attorneys Paul W. Kaufman and David A. Degnan. The case was a cooperative effort among the U.S. Attorneys’ Offices for the Eastern District of Pennsylvania and the Northern District of Illinois, the Civil Division of the Department of Justice, the FDA’s Office of Criminal Investigations, and Office of the Inspector General for the Office of Personnel Management. The HHS Office of Counsel to the Inspector General, the HHS Office of the General Counsel-CMS Division, the FDA’s Office Chief Counsel, and the National Association of Medicaid Fraud Control Units also provided assistance.
The lawsuits are captioned United States ex rel. Torres v. Shire Specialty Pharmaceuticals, et al., No. 08-4795 (E.D. Pa.) and United States ex rel. Hsieh, Harris, and Clark v. Shire PLC, et al., No. 09-6994 (N.D. Ill.). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Click here to read the settlement agreement.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Shiprock Woman Sentenced for Federal Child Abuse ConvictionRead the Press Release
ALBUQUERQUE – Angela Sloan, 30, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced today to two years of probation for her child abuse conviction. Sloan has been in a half-way house for the past three and a half months and will be spend up to an additional six months in the half-way house as a condition of her probation.
Sloan was arrested in May 2014, on a criminal complaint alleging that on May 9, 2014, she endangered the lives and safety of two children, a nine-month-old infant and a nine-year-old child, by driving under the influence of alcohol while the children were unrestrained in the back seat of her vehicle. The children did not suffer seriously bodily injury when Sloan crashed the vehicle into a wooden fence and a parked vehicle. She subsequently was indicted and charged with committing child abuse by placing the children in a situation that may have endangered their lives or health.
On July 21, 2014, Sloan entered a guilty plea to the indictment and admitted driving under the influence of alcohol, with a blood alcohol content of .23, and losing control of the vehicle in which the two children were unrestrained passengers. Sloan admitted placing the children in a situation that endangered their lives by crashing into fencing and a parked vehicle.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Special Assistant U.S. Attorney David Adams.
Serial Bank Fraud Offender Sentenced to 55 Months in Federal PrisonRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DONALD GLENN, 42, formerly of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 55 months of imprisonment, followed by five years of supervised release, for operating a bank fraud scheme while in federal custody at a Hartford halfway house, and then escaping.
According to court documents and statements made in court, in December 2009, GLENN was sentenced in Hartford federal court to 78 months of imprisonment for running an extensive fraudulent check cashing scheme that involved more than 200 counterfeit business checks and 75 different bank branches in Connecticut. Through this scheme, GLENN and his associates defrauded banks of more than $155,000.
On September 28, 2012, the Bureau of Prisons transferred GLENN to a halfway house in Hartford where he was to serve the final six months of his sentence.
In November 2012, while he was in federal custody in the Hartford halfway house, GLENN began to engage in another bank fraud scheme. In December 2012, GLENN gave an individual a counterfeit check from a Connecticut business in the amount of $4,809.02, and gave a second individual a counterfeit check from the same business in the amount of $4,743.80. At GLENN’s direction, the individuals deposited the checks into bank accounts and then withdrew a portion of the funds.
On March 27, 2013, GLENN left the halfway house without permission and did not return.
On April 2, 2013, GLENN deposited a counterfeit business check in the amount of $7,321.60 into a bank account he controlled in Connecticut and then withdrew a portion of the funds.
On August 2, 2013, GLENN was arrested in Florida on state charges. He has been detained since his arrest.
On June 16, 2014, GLENN pleaded guilty to one count of bank fraud and one count of escape from the custody of the Attorney General.
Judge Bryant ordered GLENN to pay restitution to two bank victims in the total amount of $9,687.94.
In addition to his 2009 federal conviction, GLENN’s criminal history includes a 1997 federal conviction for bank fraud and 16 state convictions. GLENN still owes more than $300,000 in restitution to the victims of his two prior federal crimes.
This matter was investigated by the Connecticut Financial Crimes Task Force and the U.S. Marshals Service. The case was prosecuted by Assistant U.S. Attorneys Anastasia E. King and David T. Huang.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Prior Felon from Albuquerque Pleads Guilty to Violating Federal Firearms Laws – Defendant Prosecuted Under Federal "Worst of the Worst" Anti-Violence InitiativeRead the Press Release
ALBUQUERQUE – Nicholas Richard Blume, 36, of Albuquerque, N.M., pleaded guilty this morning to being a felon in possession of a firearm and ammunition.
Blume was arrested in Feb. 2014, on a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on Feb. 10, 2014, in Bernalillo County, N.M. Blume subsequently was indicted on that same charge on March 11, 2014. According to court filings, Blume was prohibited from possessing firearms and ammunition in Feb. 2014, because he previously had been convicted of receiving and transferring a stolen motor vehicle, aggravated battery with a deadly weapon causing great bodily harm, extortion, possession of an imitation controlled substance, and robbery.
Today Blume admitted to the possession of a rifle and ammunition on March 11, 2014. Blume acknowledged that he was prohibited from possessing the firearm and ammunition because he was a convicted felon.
Blume has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Blume faces a statutory maximum penalty of ten years in federal prison.
Blume is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney Louis E. Valencia is prosecuting the case.
Police Officer in Fulton, New York, Pleads Guilty to Assaulting a Man in His CustodyRead the Press Release
Joseph Arigo, 47, a sergeant with the Fulton Police Department in Fulton, New York, pleaded guilty today in federal court to one count of deprivation of rights under color of law for beating a handcuffed man inside the Fulton police station.
According to court documents filed in connection with his guilty plea, Arigo was sitting at the sergeant’s desk on June 28, 2014, when a handcuffed man, G.B., was brought into the police station. G.B. was yelling, but was not physically threatening any officers or himself. Arigo pulled the video camera out of the wall to stop it from recording, walked into the room where G.B. was being held, shoved his head into the bench, and punched him in the head multiple times. G.B. suffered cuts and bruising, lost consciousness, and required seven stitches. After the incident, Arigo lied to his supervisors as well as in two official reports in an attempt to conceal his actions.
Sentencing is set for Jan. 23, 2015, and Arigo faces a maximum sentence of 10 years in prison.
This case was investigated by the Syracuse Resident Agency of the Albany Division of the FBI and is being prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Plano Gymnastics Coach Sentenced for Child ExploitationRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 26-year-old Plano gymnastics instructor has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lyndsey Ryan Cox, also known as Coach Wes, pleaded guilty on June 17, 2014 to a charge of coercion or enticement and was sentenced to 120 months in federal prison today by U.S. District Judge Richard Schell.According to information presented in court, in July 2013, Cox used his cellular phone to entice or coerce a minor to engage in sexual intercourse. Cox was indicted by a federal grand jury on Aug. 15, 2013 and charged with child exploitation violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the FBI, Plano Police Department and Collin County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Tracey M. Batson.Pittsburgh Heroin Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
PITTSBURGH - A Pittsburgh man has pleaded guilty and been sentenced in federal court to 60 months imprisonment followed by three years supervised release on his conviction of violating federal narcotics laws, as well as violating the terms of his supervised release from a prior federal firearms conviction, United States Attorney David J. Hickton announced today.
United States District Judge Terence F. McVerry imposed the sentence on Floyd Lane, 37.
According to information presented to the court, on or about June 27, 2013, Lane, who was on federal supervised release as a result of a prior conviction for being a felon in possession of a firearm, was found in possession of nine bricks of heroin. A subsequent search of his residence revealed an additional 69 bricks of heroin. One brick of heroin is comprised of 50 stamp bags of heroin. Additionally, Lane forfeited $6,302 in illegal drug proceeds to the government.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pittsburgh Bureau of Police and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Lane.
Philadelphia Resident Charged with Illegal ReentryRead the Press Release
An indictment was unsealed today charging Eliazar Pineda-Castellano, 32, of Philadelphia, PA, with reentry after deportation and illegal alien in possession of firearm, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 12 years imprisonment, a three-year term of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”) and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Periodontist Sentenced to Probation with Home Detention, Community Service for Tax FraudRead the Press Release
PITTSBURGH - A Pittsburgh resident was sentenced in federal court today in connection with his plea of guilty to filing a false income tax return, United States Attorney David J. Hickton announced today.
Periodontist Charles W. Schwimer, was sentenced by United States District Judge Arthur J. Schwab to three years of probation which includes six months of home confinement with electronic monitoring, a $20,000 fine, 300 hours of community service to be performed in dental facilities for the disadvantaged, and restitution in an amount yet to be determined by the Internal Revenue Service.
In connection with the sentencing Judge Schwab stated that Schwimer’s fraudulent conduct had been discovered during the course of a routine civil audit by the IRS in 2010. The court noted that the audit, and subsequent investigation, had shown that Schwimer engaged in fraudulent conduct over the period 2007 through 2009 through a pattern of deception and lies with regard to his income tax obligations. Schwimer pled guilty to filing a false income tax return for the year 2009. The return was false in that Schwimer had included approximately $29,000 in deductions for business expenses in connection with his dental practice on his tax return which were, in fact, purely personal expenditures that were not business related. The return was also false in that he failed to report cash that he had received directly from his employees who in turn had received cash payments from the patients of his dental practice.
The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Schwimer.
Pennsylvania Man Sentenced to 14 Months in Prison for Possession of Child PornographyRead the Press Release
WASHINGTON – Austin Santee, 22, of Shippensburg, Pa., was sentenced today to 14 months in prison for possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Santee pled guilty to the charge in May 2014 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable James E. Boasberg. Upon completion of his prison term, Santee will be placed on five years of supervised release. He also must register as a sex offender for a minimum of 15 years. During his supervised release, Santee is subject to monitoring of computer and Internet use and restrictions on contact with minors. He also must undergo sex offender testing and treatment.
According to the government's evidence, on Feb. 18, 2014, Santee contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a website known to be frequented by individuals who have a sexual interest in children. Over the next few days, Santee engaged in text message conversations with the undercover officer, whom the defendant believed was the father of an under-aged girl. During the course of their communications, Santee sent the undercover officer approximately eight images depicting child pornography. Law enforcement subsequently obtained a warrant for Santee’s arrest and apprehended him on Feb. 27, 2014. Pursuant to a search of Santee’s cellular telephone, law enforcement discovered the images depicting child pornography that were sent to the undercover officer, along with approximately 230 unique files depicting child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute those who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case.
14-216Orlando Man Sentenced to More Than 24 Years for Distributing and Possessing Child PornographyRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza sentenced Louie Anthony Salemi (33, Orlando) yesterday to 19 years and seven months in federal prison for distribution of child pornography, to be followed by a consecutive term of four years and 10 months’ imprisonment for possession of child pornography. He was also sentenced to a lifetime of supervision. Salemi pleaded guilty on May 2, 2014.
According to court documents, pursuant to a search warrant, the FBI conducted a forensic examination of Salemi’s cell phone and computer. More than more than 3,200 images and 20 videos of child pornography were found on his devices, all of which depicted prepubescent children. The forensic examination also determined that Salemi had distributed child pornography at least 79 times.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Christopher LaForgia.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Omaha Man Sentenced to 46 months in Prison for Being a Convicted Felon in Possession of a Firearm and Ammunition.Read the Press Release
United States Attorney Deborah R. Gilg announced that Cameron G. Beck, 27, of Omaha, Nebraska, was sentenced on September 23, 2014, to 46 months in prison by United States District Judge Lyle Strom. Beck was indicted after a search warrant executed on his residence located a 7.62 rifle with one drum magazine capable of holding over 50 rounds of ammo, one 30 round magazine with 30 rounds of ammo, and 3 empty handgun magazines. Beck is a convicted felon for aggravated driving while intoxicated 3rd offense. After serving his sentence, Beck will be required to serve a Term of Supervised Release of 3 years.
This case was the result of an investigation by the Nebraska State Patrol.
Oklahoma City Man Pleads Guilty to Drug Conspiracy (Methamphetamine Distribution)Read the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CORNELL TYLEIZ HARVEY, 29, of Oklahoma City, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Section 846.
The charges arose from a joint investigation by the Drug Enforcement Administration, Bureau of Indian Affairs, McAlester Police Department, the Muskogee Police Department, the Checotah Police Department, the Eufaula Police Department, the Stigler Police Department, Districts 18, 23, and 25 District Attorney’s Drug Task Force, the Oklahoma Highway Patrol, the Okmulgee County Sheriff’s Office, the McIntosh County Sheriff’s Office, the Pittsburg County Sheriff’s Office, the Oklahoma Department of Corrections, United States Department of Homeland Security, and the United States Marshal Service. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Indictment alleged that from in or about April 2003 to on or about April 15, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant, knowingly conspired to possess with the intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report.
The statutory range of punishment is not less than 10 years or more than Life imprisonment and/or up to a $10,000,000.00 fine. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Nixa Contractor Sentenced or Stealing $73,000 from Elderly Tornado VictimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., contractor who was hired to repair tornado damage at the Joplin residence of an elderly couple was sentenced in federal court today for a fraud scheme in which he stole more than $73,000.
Terry Alton Parker, 59, of Nixa, was sentenced by U.S. Chief District Judge Greg Kays to five years and eight months in federal prison without parole. The court also ordered Parker to pay $34,420 in restitution, in addition to the $38,640 in restitution that Parker paid prior to today’s hearing.
On Sept. 26, 2013, Parker pleaded guilty to bank fraud, wire fraud and money laundering.
Parker operated Alliance Contracting of Nixa, LLC, and was hired by a Joplin, Mo., resident to repair significant damage to his house caused by the May 22, 2011, tornado that destroyed a large part of Joplin. The victim, identified as “H.B.” in court documents, was 84 years old at the time; he was caring for his 88-year-old wife, who required home care and nursing assistance.
Parker agreed to repair the victim’s home for a price that was to be no more than the amount H.B. was reimbursed by his insurance company for the damage. There was no written contract, and most of the money paid to Parker was disbursed based on Parker’s verbal requests for funds. Between June 13, 2011, and Feb. 2, 2012, H.B. paid Parker a total of approximately $80,300 for his services.
After being hired, Parker was at H.B.’s home on a regular basis from June 2011 through February 2012. Parker befriended H.B. and soon began using his downstairs office area as his own office. According to court documents, Parker also began to store equipment in H.B.’s storage shed, was allowed to interact directly with the insurance company, collected H.B.’s mail each day and brought a caregiver into the home to care for H.B.’s wife. When a caregiver expressed concern regarding Parker’s taking advantage of the victim, according to court documents, Parker attempted to intimidate her by stating that she should be careful how she treated him (Parker), because one day H.B.’s house would belong to him.
In November 2011, without H.B.’s knowledge or permission, Parker stole a check from H.B.’s checkbook and wrote a check to himself for $38,640. Parker forged H.B.’s signature and deposited the check into his own bank account.
Parker persuaded H.B., who did not own a computer, to get Internet access at his home so Parker could order supplies online and conduct other business via the Internet. H.B. agreed to pay for the service. Parker set up an online banking account for H.B.’s checking account, without H.B.’s knowledge or permission, and directed all bank statements and other notifications from the bank to be delivered to an e-mail address that Parker set up in H.B.’s name (also without his knowledge). Parker established a PayPal account, without H.B.’s knowledge or permission, which was linked to H.B.’s checking account.
Over the next three months, Parker electronically siphoned $34,420 from H.B.’s checking account into the PayPal account. Most of those funds ($32,545) were then transferred from H.B.’s PayPal account to Parker’s own PayPal account.
In January 2012, loss prevention personnel from PayPal attempted to verify the validity of one of Parker’s transactions. Parker called the PayPal call center located in Omaha, Neb., and in a recorded conversation, falsely and fraudulently identified himself as H.B.
On Feb. 27, 2012, H.B. visited the bank to ask why he was no longer receiving paper bank statements. Prior to departing for the bank, he told Parker where he was going, and noticed that Parker was visibly shaken. At the bank, H.B. learned that someone had discontinued his receipt of paper bank statements online, and had electronically transferred $34,420 out of his account. (He later discovered that Parker also stole and forged the $38,640 check.)
Before H.B. returned home, Parker had fled to Texas after stealing various items of H.B.’s personal property. Before departing Missouri, Parker confronted H.B.’s daughter; he falsely claimed to her that H.B. owed him money. Parker also filed a false complaint with the Missouri Department of Health and Senior Services, alleging that H.B. had abused his wife by striking her and failing to give her proper medication as prescribed by her physician. (The complaint was investigated and found to be not substantiated.)
Not counting the stolen items of personal property (which are not a part of this case), Parker stole a total of approximately $73,060 from H.B.
Parker has a prior federal conviction in this district for wire fraud and theft from an FDIC-insured institution. In that case, an eight-count indictment was returned by the federal grand jury on Sept. 12, 2002, charging Parker with five counts of wire fraud and three counts of bank fraud over the course of three years, from 1998 through 2001. The scheme charged in that case involved Parker’s falsification of multiple invoices for goods and services in order to obtain advance payments under a construction contract, causing an aggregate loss of $46,627 to a company called DMZ, LLC. That case also involved his filing of a false police report and subsequent alteration and deposit of a $2,075 insurance check, which he increased to $20,075, causing a loss of $18,000 to Empire Bank. Parker pleaded guilty to all of the conduct and was sentenced on Jan. 30, 2003, to a term of probation and payment of restitution.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI and the Joplin, Mo., Police Department.
Nineteen Indicted for Cashing Stolen United States Treasury Checks and Credit Card FraudRead the Press Release
ATLANTA – A federal grand jury has indicted 19 people for stealing government money, credit card fraud, and aggravated identity theft, based on their involvement in an extensive scheme to steal and cash United States Treasury checks and use fraudulently obtained credit cards.
“Fraud and identity theft crimes are now perceived as lucrative alternatives for criminal organizations,” said United States Attorney Sally Quillian Yates. “People who commit these crimes prey upon unsuspecting victims, stealing the victims’ money and compromising their livelihoods, sometimes causing lifelong financial consequences.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “These indictments and arrests are a direct result of an extensive 16 month multi-agency investigation focusing on a network of individuals who facilitated their criminal enterprise through various fraudulent schemes and other criminal activities. The elaborate networking of this group allowed them to expand their criminal activities throughout multiple states as they increased their victim base. The FBI would like to extend its gratitude to those participating law enforcement agencies at all levels as this investigation now moves into the court system for prosecution.”
According to United States Attorney Yates, the charges, and other information presented in court: From approximately June 2012 until September 2014, the defendants worked together to steal and then cash United States Treasury checks from various sources, including the United States mail. The checks were originally issued to those entitled to the federal funds, including taxpayers receiving refunds, retired federal employees receiving pension benefits, military families, and Social Security beneficiaries receiving social security and disability payments.
Each defendant had a critical role in the fraud scheme. First, the indictment alleges that check suppliers, such as Erica Willis and Corey Howell, obtained and sold the stolen checks to other defendants. Check purchasers, including Hussain Abdullah, Asad Abdullah, Hudhayfah Abdullah and Hafid Abdur-Rabbani, were frequent customers of the check suppliers and purchased checks by either paying 25% of the check’s face value or splitting the proceeds from the check in half with the supplier. After purchasing the stolen checks, the defendants would pay identification manufacturers, like Ibrahim Abdur-Rabbani and Khalil Majeed, to make fake Georgia driver’s licenses matching the names and addresses of the victims, but containing photos of “check runners.” In exchange for a fee, the “runners” would use the fake driver’s licenses to cash the stolen checks at retail locations throughout the Atlanta, Ga., area, such as Wal-Mart, Kroger, and Publix.
In addition to the check-cashing scheme, the indictment charges several defendants with a separate credit card fraud scheme against Wal-Mart and Sam’s Club. Between April 2011 and November 2011, defendants Asad Abdullah, Mikal Majeed, and Billee Cosby obtained and used counterfeit identification documents to pose as real Sam’s Club members. After presenting the fraudulent documents at various Sam’s Club locations in Georgia, Tennessee, and Alabama, the defendants requested replacement store credit cards in the names of the victims, which the defendants then used to buy gift cards, gas, groceries, and other items at various Sam’s Club and Wal-Mart locations.
Across the two schemes, the defendants defrauded the federal government and Wal-Mart/Sam’s Club out of over approximately $350,000.
The 19 defendants have been indicted on multiple charges of theft of government funds, credit card fraud, related conspiracy offenses, and aggravated identity theft. The indictment also contains other charges against individual defendants, ranging from passport fraud to illegally obtaining a firearm. The defendants were indicted by a federal grand jury on September 11, 2014, and some have already made their initial appearances before United States Magistrate Judge Alan J. Baverman.
Those indicted and arrested, or already in custody, and their charges include (all from Atlanta, except where otherwise indicated):
- Hussain Abdullah, 33, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, and Conspiracy to Commit Hobbs Act Robbery.
- Hudhayfah Abdullah, 31, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, and Lying on Required Form to Purchase a Firearm.
- Asad Abdullah, a/k/a “Baldhead,” 36, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, Conspiracy to Commit Access Device Fraud, and Access Device Fraud.
- Hafid Abdur-Rabbani, 36, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Ibrahim Abdur-Rabbani, 32, of Decatur, Ga., conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Khalil Majeed, 34, conspiracy to Commit Theft of Government Funds, Theft of Government Fund, and Aggravated Identity Theft.
- Sayeed Valdez, 37, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Erica Willis, 35, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Dexter Willis, a/k/a Qadir Monies, a/k/a “Dent,” 35, conspiracy to Commit Theft of Government Funds.
- Antonio Slaton, 36, conspiracy to Commit Theft of Government Funds.
- Cory Howell, 42, conspiracy to Commit Theft of Government Funds.
- Damion Davis, 30, of College Park, Ga., conspiracy to Commit Theft of Government Funds.
- Ali Al-Amin, 35, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Zakariyah Abdullah, 34, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, and Improper Use of a Passport.
- Billee Cosby, 33, conspiracy to Commit Access Device Fraud, Access Device Fraud, and Aggravated Identity Theft.
- Mikal Majeed, 32, of Ellenwood, Ga., conspiracy to Commit Access Device Fraud, Access Device Fraud, and Aggravated Identity Theft.
- Muhajid Ahmad, 32, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Joann Drigo, 26, conspiracy to Commit Theft of Government Funds.
- Jasmine Proctor, 19, conspiracy to Commit Theft of Government Funds, and Theft of Government Funds.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. Assistance in this case has been provided by the following federal agencies: Federal Air Marshal Service; United States Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms, and Explosives; IRS-Criminal Investigations; United States Secret Service; United States Postal Service; and the Department of Homeland Security. The following state and local agencies have also assisted in this case: Georgia Bureau of Investigation; Georgia Office of Consumer Protection; Georgia Department of Corrections; Atlanta Police Department; Woodstock Police Department; Fulton County Sheriff’s Office; Henry County Police Department; Gwinnett County Police Department; Dunwoody Police Department; Brookhaven Police Department; Sandy Springs Police Department; DeKalb County Police Department, and Chamblee Police Department.
Assistant United States Attorneys Kim S. Dammers and Nekia S. Hackworth are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
New Mexico Man Charged in Passport Fraud InvestigationRead the Press Release
DES MOINES, IA B United States Attorney Nicholas A. Klinefeldt announced that a grand jury sitting in the Southern District of Iowa returned an indictment charging Neil Stammer of Albuquerque, New Mexico, with passport fraud in violation of 18 U.S.C. § 1542 and aggravated identity theft in violation of 18 U.S.C. § 1028A(a)(1). Stammer is currently in custody on pending charges in Albuquerque and is not expected to make his initial appearance in the Southern District of Iowa until the conclusion of the pending charges in New Mexico. Stammer faces a potential sentence of up to ten (10) years imprisonment and/or a $250,000 fine if convicted of passport fraud, and a consecutive term of imprisonment of two (2) years if convicted of aggravated identity theft.
The investigation was led by the Diplomatic Security Service.
In accordance with the Iowa Rules of Professional Conduct, the public is reminded that an indictment and a complaint are merely accusations, and that the defendants are presumed innocent until and unless proven guilty. Additionally, because this matter is pending in the United States District Court, the United States Attorney’s Office does not anticipate making any further comment or statement at this time.
(Download Press Release )
Mono County Woman Sentenced for Embezzlement from Bridgeport BankRead the Press Release
SACRAMENTO, Calif. — Roxanna Foley, 53, of Bridgeport, was sentenced today by United States District Judge Kimberly J. Mueller to 30 months in prison for embezzlement by a bank employee and ordered to pay $315,000 in restitution, United States Attorney Benjamin B. Wagner announced.
Foley worked at Eastern Sierra Community Bank (ECSB) in Bridgeport. According to the plea agreement, starting in November 2011, bank officials noticed discrepancies with the Bridgeport branch of ESCB. On March 19, 2012, managers from the bank made an unannounced visit to Foley’s branch to investigate a suspicious $90,000 transaction. After a review of the local bank’s records, officials identified $90,000 in misplaced funds, as well as $6,000 missing from Foley’s teller drawer.
During the surprise inspection, Foley admitted to taking over $300,000 from the bank. A later review of the ECSB’s accounts uncovered $322,000 in missing funds, as well as multiple electronic transactions moving money between accounts made by Foley. Official also learned that Foley had been circumventing normal banking procedures at ECSB, including single-handedly taking over all counting and auditing of ECSB accounts when dual-counting procedures were required.
At sentencing, Judge Mueller found that the loss in this case was “significant,” and that Foley “succumbed to the temptation” of having access to such funds. In sentencing Foley, Judge Mueller sought to punish Foley for her conduct and stated that a “period of time in a federal facility will serve as a deterrent” to Foley and others.
This case was the product of an investigation by the Mono County District Attorney’s Office, the Mono County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon prosecuted the case.Mobile County Man Sentenced for Felon in Possession of A FirearmRead the Press Release
United States Attorney Kenyen R. Brown announces that Daniel Norman Howard, Jr. was sentenced on September 22, 2014 to twenty-seven months confinement by United States District Court Judge Charles R. Butler. Howard plead guilty to being a Felon in Possession of a Firearm. Howard’s prior felony conviction was for Possession of Cocaine in the Circuit Court of Mobile County, Alabama, on or about July 27, 1999. The firearm Howard possessed was a loaded FNP, Model ACP .45 caliber handgun.
The case was investigated by the Mobile County Sheriff’s Office, Narcotics Division.
Michael "the Situation" and Marc Sorrentino Indicted for Tax Crimes Involving $8.9 Million IncomeRead the Press Release
NEWARK, N.J. - Television personality Michael “The Situation” Sorrentino and his brother Marc Sorrentino are expected to appear in federal court this afternoon to face an indictment alleging they did not properly pay taxes on $8.9 million in income Michael Sorrentino received from promotional activities, U.S. Attorney Paul J. Fishman announced.
Michael Sorrentino and his brother Marc Sorrentino are charged with one count of conspiracy to defraud the United States. Marc and Michael Sorrentino also are charged with three and two counts, respectively, of filing false tax returns for 2010 through 2012. Michael Sorrentino faces an additional count for allegedly failing to file a tax return for 2011. The defendants are expected to surrender to special agents of IRS-Criminal Investigation and United States Marshals prior to their court appearance before U.S. Magistrate Judge Steven C. Mannionin Newark federal court.
“According to the indictment, Michael and Marc Sorrentino filed false tax returns that incorrectly reported millions made from promotions and appearances,” said U.S. Attorney Paul J. Fishman. “The brothers allegedly also claimed costly clothes and cars as business expenses and funneled company money into personal accounts. The law is absolutely clear: telling the truth to the IRS is not optional.”
“Most individuals file truthful tax returns and pay their fair share of taxes. However, as alleged in today's indictment, rather than living in reality and reporting their true income, Michael Sorrentino and his brother Marc created the illusion that they earned less income by filing false and fraudulent tax returns,” stated Jonathan D. Larsen, Acting Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office. “No matter what your occupation or status in life, if you attempt to cheat on your taxes for personal financial gain, you face real consequences including criminal prosecution and a possible prison sentence.”
Both Michael and Mark Sorrentino are expected to be arraigned on the indictment before U.S. District Judge Susan D. Wigenton in Newark federal court on Oct. 6, 2014.
According to the indictment returned today:
Michael Sorrentino is a reality television personality who first gained fame on “The Jersey Shore,” which appeared on the MTV network. Marc Sorrentino is Michael’s brother and manager. The pair conspired to fail to pay all federal income tax owed on approximately $8.9 million earned by Michael Sorrentino between 2010 and 2012. This income was largely received by two companies controlled by the brothers: MPS Entertainment, LLC and Situation Nation, Inc.
As part of the conspiracy, the brothers submitted or caused to be submitted to the IRS false documents which understated the gross receipts received by the brothers and the two companies. The brothers also submitted false personal tax returns which failed to report all of the income they received, and Michael failed to file a personal tax return in 2011, despite earning $1,995,757 that year.
As part of the conspiracy, the brothers also fraudulently claimed millions of dollars in personal expenses as business expenses, including payments for high-end vehicles and clothing, personal grooming expenses, and distributions – or direct payments – from the businesses to personal bank accounts.
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine; the filing false tax return counts each carry a maximum potential penalty of three years in prison and a $250,000 fine. The count charging Michael Sorrentino with failing to file a tax return carries a maximum potential penalty of one year in prison and a $100,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Larsen, with the investigation.
The government is represented by Assistant U.S. Attorneys Evan S. Weitz and Jonathan W. Romankow of the U.S. Attorney's Office Criminal Division in Newark, as well as Trial Attorney Tino Lisella of the Tax Division of the United States Department of Justice.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.14-341
Defense counsel:
Michael Sorrentino: Richard Sapinski Esq., Newark, N.J.
Marc Sorrentino: Chris Adams Esq., Colts Neck, N.J.Sorrentino, Michael and Marc Indictment
Memphis Woman Sentenced to Six Years in Federal Prison for Role in Tax Fraud Identity Theft SchemeRead the Press Release
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, and Christopher A. Henry, Special Agent in Charge, IRS-Criminal Investigation, announced today that Cheryl Wright, 30, of Memphis, Tenn., was sentenced by United States District Judge John T. Fowlkes, Jr. to serve 72 months (six years) in prison followed by three years of supervised release, and is jointly liable with co-conspirator Nakita Brooks to pay restitution in the amount of $690,767.84 to the Internal Revenue Service (IRS).
“Through her fraudulent tax scheme, Cheryl Wright victimized the IRS and the people whose identities she stole,” said United States Attorney Stanton. “And while she may have avoided paying taxes and received hundreds of thousands of dollars in refunds she was not owed, she will now pay the ultimate price of spending the next six years in a federal prison for her criminal acts.”.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Christopher A. Henry, Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentencing should serve as a strong warning to those who are considering similar conduct. Law enforcement is serious about investigating these crimes and holding those who would defraud the government accountable.”
On April 22, 2014, Wright pled guilty to one count of a three-count indictment charging her and co-conspirator, Nakita Brooks, 31, with conspiracy to file false tax returns, theft of public money and identity theft. According to the facts presented in the indictment and revealed during sentencing hearings, beginning as early as February 2010 through at least November 2011, Brooks and Wright filed hundreds of false tax returns using the personal identifying information of deceased individuals, including social security numbers.
In addition to filing false returns, Wright and Brooks also set up tax return services using stolen identities as the preparers of the returns. In 2010, the name of the company used to prepare the returns was Rattler’s Tax Pals. In 2011, the name of the company used to prepare the returns was Taxes Express. Three individuals, including a nine-year old girl from Indiana, had their tax information fraudulently listed as the preparers for these companies.
Brooks was sentenced July 11, 2014, by U.S. District Judge John T. Fowlkes, Jr., to serve 10 years in federal prison, to be followed by three years of supervised release, and ordered to pay restitution of $690,767.84 to the Internal Revenue Service (IRS).
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney David Pritchard represented the government.
Madill Man Sentenced to 96 Months for Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL LYNN CARTER, age 61, of Madill, Oklahoma, was sentenced to 96 months imprisonment, followed by 5 years of supervised release for Possession of Certain Material Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The charge arose from an investigation by the Federal Bureau of Investigation. CARTER was indicted in March 2014 and pled guilty in May 2014.
The Indictment alleged that from between in or about September 2013 and December 20, 2013, in the Eastern District of Oklahoma, the defendant did knowingly possess and attempt to possess matters which contained visual depictions and the production of said visual depictions involved the use of a minors engaging in sexually explicit conduct which were then transported in interstate commerce by a computer.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Edward Snow represented the United States.
Lighting Contractor Charged with Agreeing to Bribe Broward Public OfficialRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of a one-count information charging William E. Pino, 60, of Miami, with offering and agreeing to give something of value to a public official with the intent to influence or reward said public official in connection with a transaction or series of transactions and thereby committing bribery in programs receiving federal funds, in violation of Title 18, United States Code, Section 666. Pino will make his initial appearance on September 30, 2014 at 11:00 a.m. before U.S. Magistrate Judge Patrick M. Hunt in Fort Lauderdale.
According to the information, Pino was involved in a number of companies in South Florida that were in the business of installing, repairing and maintaining street lights, traffic signals, and traffic systems and the sale of products needed to make such installations and repairs, such as light poles. From in or about April 2012 through on or about June 27, 2012, Pino met with a confidential informant who advised Pino that there were upcoming public works projects in Broward County for traffic systems, traffic signs, street lights and light poles. The informant advised Pino that the informant had a contact in Broward County, but that Pino would need to “take care of” the public official. Pino agreed to “take care of” the public official.
On or about May 24, 2012, Pino was told that the public official had a purchase order for $100,000 in light poles for Pino’s company. Pino agreed to pay the public official $5,000 in exchange for the purchase order containing $100,000 of his light poles. On or about June 27, 2012, there was a meeting between Pino, the informant, and the public official in Plantation. Pino was handed a purchase order for his company to provide Broward County with $100,000 worth of light poles and Pino then handed the public official an envelope containing $5,000 in U.S. currency.
If convicted, Pino faces a statutory maximum term of 10 years in prison and a fine of up to $250,000.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.