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30 October 2014
Detroit Woman Sentenced to Probation with Community Service for Heroin Trafficking SchemeRead the Press Release
Johnstown, Pa. - A Detroit resident has been sentenced in federal court to five years’ probation and 100 hours of community service, on her conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Megan Holton, 29, of Detroit, Michigan.
According to information presented to the court, from the spring of 2011 to May 15, 2012, Holton, along with co-defendants, conspired to distribute and possess with intent to distribute heroin.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department for the investigation leading to the successful prosecution of Holton. Other agencies participating in this investigation included the Pennsylvania Attorney General’s Office, the Cambria County Drug Task Force, the Cambria County Sheriff’s Department, the Cambria County District Attorney’s Office, the Indiana County Drug Task Force and the Indiana County District Attorney’s Office.
Deputy United States Marshal One of Three Indicted as Part of Armed Robbery CrewRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Clorenzo Griffen, 37, of Fort Lauderdale, Florida, and Miami residents Andrew Jamison, 39, and Rodney Rackley, 24, charging them with robbery, drug conspiracy, and brandishing firearms in furtherance of a crime of violence and drug trafficking, United States Attorney Benjamin B. Wagner announced.
All three defendants have made initial appearances in federal court and been ordered detained. They are scheduled to be arraigned on November 6, 2014.
According to court documents, on October 11, 2014, a CHP officer in Sutter County attempted to stop a speeding Jeep Patriot. The three defendants eventually abandoned the vehicle, and were subsequently taken into custody with the assistance of the Sutter County Sheriff’s Department. At the time of his arrest, Griffen possessed a loaded .40-caliber firearm. Further investigation revealed that Griffen is a deputy United States Marshal from Miami, Florida.
Court documents further indicate that before fleeing from the CHP, the defendants had robbed three individuals at gunpoint of approximately 24 pounds of marijuana.
This case is the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, Sutter County Sheriff’s Office, Yuba City Police Department, and the Sutter County District Attorney’s Office. Assistant United States Attorney Jason Hitt is prosecuting the case.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison on each of the robbery and drug trafficking charges and a $1 million fine. The firearm charge carries a mandatory minimum sentence of seven years in prison that must run consecutive to any sentence imposed on the robbery or drug charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Denver Attorney Is Sentenced to Federal Prison for Conspiracy to Defraud the IRSRead the Press Release
DENVER – Eva Melissa Sugar, age 61, of Aurora, Colorado, was sentenced earlier this week by U.S. District Court Judge John L. Kane to serve 18 months in federal prison for conspiracy to defraud the United States in connection with the collection of taxes, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Following her prison sentence, Sugar was ordered to serve 3 years on supervised release and ordered by Judge Kane to pay a fine of $5,000. She was ordered to report to a Bureau of Prisons facility within 15 days of designation. Sugar and two co-defendants, Jerry L. Roberts and Gregory N. Laurence, were indicted by a federal grand jury in Denver on May 8, 2013. Roberts pled guilty to failure to file tax returns on July 15, 2014 and is scheduled to be sentenced by Judge Kane on November 18, 2014. Laurence pled guilty to attempting to obstruct the administration of internal revenue laws on February 6, 2014 and was sentenced by Judge Kane on September 4, 2014 to probation for 5 years and ordered to pay $180,850 in restitution.
According to information contained in the indictment and plea agreements, Sugar was a practicing attorney in Denver, Colorado and obtained an L.L.M. in Taxation from the University of Denver. Around 1999, Sugar began receiving referrals from a group called Financial Fortress Associates (FFA). FFA promoted the use of so-called Constitutional Pure Trust Organizations (PTOs) as a part of various schemes to avoid tax reporting requirements, including transferring ownership of most or all assets belonging to a taxpayer or a taxpayer’s business to trusts and treating payments to the same trusts as business deductions. FFA further advised clients not to file tax returns or any other documents with the IRS on behalf of the trusts. FFA recruited clients through the internet and in seminars or “meetings” conducted in hotel conferences rooms around the country, including locations in Colorado, Georgia, Texas, and elsewhere. At some of these meetings, Sugar explained how the FFA’s banking program worked, and others associated with FFA explained other aspects of FFA’s program.Sugar charged her clients fees for her services, including an initial fee to set up bank accounts and associated unincorporated business organizations (UBOs), as well as annual maintenance fees. For additional fees, Ms. Sugar allowed her clients to control funds in the UBO bank accounts through the use of blank checks that she would sign, for a fee, as the account signer or trustee. The clients would then fill in the checks, spending the money from the accounts in whatever manner they desired. Sugar provided these services for more than 150 clients, and in so doing, performed various overt acts in furtherance of the conspiracy. The tax loss resulting from Sugar’s activities as part of the conspiracy is between $2.5 million and $7 million.
Roberts and Laurence were clients of Sugar. Roberts was a resident of Polk County, Florida and worked for Roberts Enterprises, a family business which assisted charitable organizations, primarily religious ones, with fundraising. Beginning in 2001 through at least May of 2007, Roberts used the services of Sugar, to take steps to prevent the IRS from learning his true income and assessing taxes on that income. Roberts then failed to file tax returns reporting his income.
Laurence was a resident of Germantown, Tennessee and practiced medicine through two entities in which he was the sole physician, Germantown Family Care and Obstetrics, LP and Germantown Aesthetics, LP. Beginning in 2002 through the end of 2007, Dr. Laurence used the services of Melissa Sugar to disguise his true income from the IRS and to support the false business and personal tax returns he filed during the relevant period.
Another client of Sugar’s, Jerold Sorensen, was charged in a separate indictment with attempted obstruction of the administration of the internal revenue laws and was found guilty by a jury in Denver in June of 2014. On September 8, 2014 Sorensen was sentenced by U.S. District Court Judge Raymond P. Moore to 18 months in federal prison and to pay a fine of $100,000.00. .
This case was investigated by Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the Internal Revenue Service and prosecuted by Assistant U.S. Attorneys Matthew T. Kirsch, Anna Edgar, Pegeen Rhyne, and J. Chris Larson.Denham Springs Woman, Katrular Buchana Bell, Sentenced for Preparing and Filing False Income Tax ReturnsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KATRULAR BUCHANA BELL, age 39, a resident of Denham Springs, and former tax preparer, was sentenced today for her role in preparing and electronically filing multiple false federal income tax returns.
U.S. District Judge Jane Triche Milazzo sentenced BELL to four (4) years probation. In addition to probation, Judge Milazzo ordered BELL to pay $41,747 in restitution to the IRS.
According to court documents, BELL willfully aided and assisted in the preparation and electronic filing with the IRS of multiple false income tax returns. BELL fraudulently manipulated the income amounts reported on the returns in order to obtain large refunds to which the filers were not entitled. In 2010, BELL provided the false information in a tax return about an individual’s income during tax year 2009, in that it falsely stated that the taxpayer earned Schedule C income of $13,400. This individual did not work as an employee during 2009, did not receive a Form W-2 reporting any wages that year, and did not provide a Form W-2 to defendant BELL at any time. Nonetheless, on or about January 20, 2010, defendant BELL prepared a 2009 income tax return on the individual’s behalf to which she attached a false Schedule C and fraudulently claimed a refund of $4,915. BELL collected a fee for the preparation of this return.
U.S. Attorney Polite praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Irene Gonzalez is in charge of the prosecution.
Connecticut Man Pleads Guilty to Gambling ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Mark Ruff, 40, of Connecticut, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to conducting an illegal gambling business and conspiracy to commit money laundering. The charges carry a maximum possible penalty of 25 years in prison, a fine of $750,000 or both.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that Mark Ruff admitted to conducting an illegal gambling business with his brother Joseph Ruff, 32, and Paul Borrelli, 66, both of Rochester. The gambling operation involved sports betting through multiple offshore internet gambling websites. As part of their illegal activities, Mark Ruff conspired with Joseph Ruff and others to launder $230,000 in illegal gambling proceeds.
Mark Ruff transferred the gambling proceeds from Rochester to an associate in Connecticut to conceal the source of the proceeds. The money was deposited into a credit line and subsequent cash withdrawals were made and checks written from the credit line for Mark Ruff and Joseph Ruff.
On June 24, 2014, the defendant, Joseph Ruff, and Paul Borrelli were indicted by a federal grand jury in Rochester on illegal gambling charges. The indictment also charged Borrelli with 12 counts of money laundering and Joseph Ruff with 10 counts of money laundering. The charges against Joseph Ruff and Paul Borrelli are pending. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation conducted by the Organized Crime Drug Enforcement Task Force, which included the Federal Bureau of Investigation, Internal Revenue Service, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, Rochester Police Department, under the direction of Chief Michael Ciminelli, Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Division, Greece Police Department, under the direction of Chief Patrick Phelan, the Webster Police Department, under the direction of Chief Gerald Pickering, and Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Sentencing is scheduled for January 29, 2015 at 3:00 p.m. before Judge Geraci.Clearwater Man Sentenced to Ninety Years for Production of Child PornographyRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Steven Edward Speer (28, Clearwater) to 90 years in federal prison for five counts of producing child pornography. The court also ordered him to forfeit a computer and cell phone that he had used to the commit the offenses. Speer pleaded guilty on June 24, 2014.
According to court documents, in November 2013, the FBI and other local law enforcement agencies executed a federal search warrant at Speer’s residence based on information that he was trading child pornography. During the search, agents located and seized Speer’s computer and cell phone. Six videos and more than 1,900 images of child pornography were found on the phone. Many of the images and videos depicted a three year-old autistic child. Speer confessed to engaging in sex acts with this child, and producing the images and videos of the abuse. He further admitted that he had distributed the child pornography he produced over the Internet in order to gain access to additional child pornography from others.
“The message should be crystal clear. One of our highest priorities is to protect our children. Possessing, viewing, and especially producing child pornography are evil acts that infect our society. Today’s sentence demonstrates such acts will not be tolerated. No child should ever be abused,” said FBI Special Agent in Charge Paul Wysopal.
This case was investigated by the Federal Bureau of Investigation, the Clearwater Police Department, and members of the FBI’s Child Exploitation Task Force, including the St. Petersburg Police Department and the Largo Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
This 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, 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.
Clarkston Man Sentenced for Tax EvasionRead the Press Release
A 41-year-old Clarkston man was sentenced today to 18 months in prison for income tax evasion, U.S. Attorney Barbara L. McQuade announced.
McQuade was joined in the announcement by Special Agent in Charge Jarod Koopman, of the Internal Revenue Service, Criminal Investigation.
Receiving the sentence from U.S. District Judge Gershwin A. Drain was Bradley T. McKouen. Judge Drain also imposed a two-year term of supervised release and ordered McKouen to pay the U.S. Treasury $319,000 in restitution. McKouen pleaded guilty to the charge in April.
According to court records, during the 2008 tax year, McKouen was the president and sole member of Delta Staffing, LLC, an employee leasing company located in Clarkston. Delta was a Schedule C company, meaning its profits were to be reported on Schedule C as a part of McKouen’s personal federal income tax return. In 2008, Delta’s gross receipts were approximately $5.7 million. However, McKouen reported $0 gross receipts on his return. He also reported $0 business income, $0 taxable income, and $0 income tax. In 2008, McKouen’s actual taxable income was approximately $299,000 and his tax due was approximately $110,000. Under the terms of his plea agreement, McKouen is also being held responsible for filing similar zero-income returns for the years 2004-2007. In all, he failed to report $15 million in gross income and evaded $319,000 in federal income taxes for the years 2004-2008.
"The prosecution and sentencing of Mr. McKouen, who intentionally concealed his income and evaded taxes, reinforces the message to the public that the IRS-CI will continue to work to detect and investigate anyone that believes they are above the law,” said Special Agent in Charge Koopman.
The case was investigated by special agents of the Internal Revenue Service and was prosecuted by Assistant U.S. Attorney Stephen Hiyama.Chipley Man Indicted for Healthcare-Related FraudRead the Press Release
Follow @NDFLNewsPANAMA CITY, FLORIDA– Eon L. Menckeberg, aka “Prince,” 44, of Chipley, has been indicted by a federal grand jury on six counts of wire fraud, announced Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The indictment, which was unsealed this afternoon, alleges that Menckeberg injured his ankle in 2012 and sought medical treatment from the Jackson County Hospital in Marianna. The indictment further alleges that, several months later, Menckeberg went to Northwest Florida Community Hospital in Chipley (“NFCH”), seeking elective hyperbaric-oxygen treatment for his ankle wound. To induce NFCH to provide this care, Menckeberg is alleged to have told NFCH staff that he had health insurance through Lloyd’s of London (“Lloyd’s”). He enlisted the help of another person who communicated with NFCH staff to fraudulently confirm that Menckeberg had health insurance with Lloyd’s and that Lloyd’s had authorized the hyperbaric-oxygen treatment. Based on these false statements, NFCH provided Menckeberg with the elective hyperbaric-oxygen treatment at a total cost of approximately $244,901.50.
Menckeberg had his arraignment this afternoon before Magistrate Judge Larry A. Bodiford at the U.S. Courthouse in Panama City. Trial is scheduled for Monday, December 8, 2014, before Judge Richard Smoak.
The case is being investigated by the Federal Bureau of Investigation and the Florida Department of Financial Services, Division of Insurance Fraud. The case is being prosecuted by Assistant U.S. Attorney Gayle Littleton.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.Charlotte Man Sentenced to More Than 16 Years in Prison for Operating A Ponzi Scheme That Defrauded Investors of More Than $1.5 MillionRead the Press Release
Defendant Spent The Stolen Funds On Personal Expenses
CHARLOTTE, N.C. – Sean F. Mescall, 35, of Charlotte, was sentenced today by U.S. District Judge Robert J. Conrad, Jr. to serve 195 months in prison for orchestrating a Ponzi scheme that solicited victims to invest more than $1.5 million dollars in the foreign currency market (FOREX), announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Mescall to serve three years under court supervision following his prison term and to pay $1,248,812.09 as restitution to his victims. In December 2012, a federal jury convicted Mescall of securities fraud, wire fraud and money laundering.
North Carolina Secretary of State Elaine F. Marshall and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division join U.S. Attorney Tompkins in making today’s announcement.
According to court documents and today’s sentencing hearing, from 2006 to 2010 Mescall executed a Ponzi scheme by inducing over 119 investors in Charlotte and elsewhere to invest more than $1.5 million in his investment company, “Capitalstreet Financial, LLC” (CSF), falsely representing that their money would be invested in the foreign currency market. Court documents show that Mescall lied to his victims about his professional background and credentials falsely claiming that he was a college graduate with over 20 years of experience trading in FOREX and that he was a former director at Merrill Lynch. Court records indicate that Mescall did not have a college degree, had no relevant trading experience and never worked for Merrill Lynch. Mescall also misled his investors about CSF, claiming that it was a national company with over 35 offices, and that CSF handled over $100 million in trade volume each month. In fact, court records indicate, CSF only operated a boiler room in Charlotte and later in Cornelius, and that it never handled $100 million in trade at any time during the scheme.
Court documents indicate that Mescall lulled his victims into a false sense of security by falsely promising 60% to 80% annual returns on their investments. Court records show that often Mescall’s victims were elderly and the funds they invested were most, if not all, of their life savings. Over the course of the scheme, Mescall only traded $285,908 of the victim’s money, and sustained $271,705 in losses. Mescall used approximately $295,000 to pay some victims supposed “payouts” from profits made on investments. However, court records show that these payments were not based on profits, but came from funds contributed by new investors, commonly referred to as “Ponzi” payments. Mescal simply deposited the rest of the investors’ money into various bank accounts he controlled in the United States and offshore, and used a substantial amount of investor money to pay for personal expenses unrelated to any foreign exchange. For example, court documents indicate that Mescall used investor money to buy, among other things, a BMW, a Ferrari and other cars, a Rolex watch, diamonds and other jewelry, and to make mortgage payments on his Lake Norman residence.
“The defendant seemed to have no sense of the traumas suffered by the victims,” Judge Conrad said in announcing Mescall’s sentence. “These losses were significant, life impacting events because of the defendant’s greed.”
Mescall has been detained since June 2012 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The case was investigated by the Securities Division of the North Carolina Secretary of State and the FBI.
The prosecution was handled by Assistant U.S. Attorney Kenneth Smith of the Western District of North Carolina.
Certified Nurse Practioner Diantha Miller Convicted on All Counts of Fraud and ConspiracyRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that a federal jury in Mobile has convicted Certified Nurse Practitioner Diantha Miller of two counts of healthcare fraud and one count of conspiracy following a three-day trial.
At trial, the evidence established that while Diantha Miller was the co-owned the Laser Skin Care Center of Mobile, she engaged in a scheme to fraudulently up-code, a scheme to fraudulently re-code, and conspired to do both with her business partner, Dr. Lawrence Carpenter. Specifically, the jury found that Diantha Miller knowingly and willfully engaged in a scheme to falsify bills to insurance companies so that it would appear as if services were performed by Dr. Carpenter, not Diantha Miller. As a general matter patient services are reimbursed at higher rates when performed by physicians. In addition, Diantha Miller knowingly and willfully engaged in a scheme to fraudulently alter billing codes on rejected bills so that the Laser Skin Care Center would be reimbursed. Finally, the jury found that Diantha Miller conspired with Dr. Carpenter to commit these crimes. As co-owners of the business, Diantha Miller and Dr. Carpenter both benefited financially from the fraudulent billings. In total, these fraud schemes resulted in Laser Skin Care Center receiving nearly $1 million in fraudulent reimbursements.
United States Attorney Kenyen Brown was very pleased with today’s result: “Today’s jury verdict is a yet another example demonstrating that citizens of our district will not tolerate cheaters enriching themselves through fraud. My office will continue to vigorously prosecute fraud cases, particularly fraud cases that syphon money away from our healthcare system.” FBI Special Agent in Charge Robert F. Lasky also noted, “The FBI views health care fraud as a severe crime problem, which drains taxpayers’ dollars and puts them in the pockets of criminals. The FBI will continue to dedicate a substantial amount of resources to investigate these fraudulent schemes.”
This case was investigated by FBI-Mobile and prosecuted by the U.S. Attorney’s Office for the Southern District of Alabama.
Buffalo Man Found Guilty of Violating Supervised ReleaseRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Michael Kemp, 37 of Buffalo, NY, was found guilty by U.S. District Court Judge Richard J. Arcara, of violating his supervised release. The defendant failed to obtain advance notification from the U.S. Probation Department to use a computer and for possessing child pornography. The violations carry a maximum sentence of two years in prison.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case, stated that on October 15, 2013, Kemp’s probation officer found a computer and hard drive hidden between the defendant’s mattress and box spring in his bedroom at his residence in Buffalo. Kemp has been on supervised release since July 2008 after being released from federal prison for a conviction of possession of child pornography. Judge Arcara sentenced Kemp to 51 months in prison for possessing child pornography on a computer in his residence in October 2004.
The investigation is the culmination of an investigation on the part of officers of the United States Probation Department, under the direction of Anthony SanGiacomo, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the Regional Computer Forensic Laboratory.
Sentencing on the violation of supervised release is scheduled for November 24, 2014 at 12:00 p.m. before Judge Arcara.Bridgeport Man Admits Operating Mail Fraud and Bank Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DAYQUAN JACKSON, also known as “Quan” and “DaeDae,” 26, of Bridgeport, pleaded guilty yesterday before U.S. District Judge Janet Bond Arterton in New Haven to one count of conspiracy to commit mail fraud and bank fraud in connection with a stolen check scheme.
According to court documents and statement made in court, JACKSON and others stole mail from residences in Fairfield County throughout 2013 and 2014 in order to obtain either blank checks or credit card “convenience checks.” JACKSON and others then used some of the stolen checks to purchase cars, motorcycles and all-terrain vehicles listed for sale on the Internet from unsuspecting victims in surrounding states. Some of the stolen checks also were provided to “runners” who deposited the checks into their bank accounts. JACKSON and others then withdrew the funds from the accounts.
Financial institutions and individual victims lost more than $120,000 as a result of this scheme.
Judge Arterton scheduled sentencing for March 5, 2015, at which time JACKSON faces a maximum term of imprisonment of 30 years and a fine of up to $1 million.
JACKSON was arrested on March 7, 2014. He currently is released on bond to the custody of an inpatient residential drug treatment facility.
This matter is being investigated by the U.S. Postal Inspection Service, with substantial assistance from the Connecticut Financial Fraud Task Force and the Greenwich, Fairfield, Wilton and Bridgeport Police Departments, as well as law enforcement in New Hampshire. The case is being prosecuted by Assistant U.S. Attorney Marc Silverman and Special Assistant U.S. Attorney Charles L. Rombeau.
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(203) 821-3722 [email protected]Belleville Man Pleads Guilty to Failure to Appear for Sentencing After Being Convicted of Making False Income Tax ClaimsRead the Press Release
Follow @SDILNewsDestry Marcotte, 48, of Belleville, Illinois, pled guilty to Failure to Appear for Sentencing the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Marcotte faces up to five years in prison which would be in addition to the sentence he receives on the underlying offenses of conviction for submitting false claims for federal refunds.
Marcotte had been convicted in 2013, following a jury trial, of making false claims against the United States by submitting false claims for tax refunds. Marcotte filed tax returns, as part of the sovereign citizen movement, claiming that the I.R.S. owed him more than $600,000. He faces up to forty years in prison on those charges. He was on bond with electronic monitoring, but fled prior to sentencing. Sentencing on both cases is scheduled for November 21, 2014.
The investigation was conducted by the United States Marshals Service and the Criminal Investigations Division of the Internal Revenue Service. The prosecution is being handled by Assistant United States Attorney Norman Smith.
Beckley Heroin Dealer Sentenced in Federal Court in BeckleyRead the Press Release
BECKLEY, W.Va. – United States Attorney Booth Goodwin announced today that a Beckley man was sentenced in federal court for selling heroin. Jason Kaylor, 31, was sentenced to eight months in prison. Kaylor previously pled guilty in July of 2014, to selling heroin to a person cooperating with law enforcement authorities. The drug deal took place on Cunningham Avenue in Stanaford, West Virginia.
This case was investigated by the Beckley Raleigh County Drug and Violent Crime Task Force and is being prosecuted under the Beckley Pill Initiative directed by the United States Attorney’s Office. This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
Defendant was sentenced by United States District Court Judge Irene C. Berger.
Bahamian Smuggler in Fatal Capsizing Sentenced to 14 Years in PrisonRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Rear Admiral John H. Korn, Commander, 7th Coast Guard District (USCG), announce that Naaman Davis, 54, of Bimini, Bahamas, was sentenced to 168 months in prison by U.S. District Judge Kathleen M. Williams. Davis had previously pled guilty to one count of migrant smuggling resulting in death and one count of bringing an aggravated felon into the United States.
According to court documents, Davis had been hired to drive a boat of migrants from the Bahamas to the United States on the evening of October 15, 2013. During the voyage from the Bahamas, Davis maintained a drug induced high by smoking crack-cocaine from a pipe which he had brought with him. At one point the vessel stalled, approximately seven miles off the coast of Miami, at which time the vessel began taking on water. Instead of assisting the others onboard the vessel with bailing the water, Davis continued to smoke, while everyone else bailed water. Eventually the vessel capsized, trapping four Haitian women underneath: Lodilla Escarment, Carmen Valeris, Kerline Mercy and Woodline Alexis. All four women ultimately died of drowning. Through counsel, Davis conceded that he had intended on using the money he was to be paid from this venture to buy more crack cocaine.
Five co-defendants in the instant case have previously been sentenced for their participation in these events:
George Lewis, 39, of the Bahamas, was sentenced to 60 months imprisonment;
Everton Jones, 51, of Jamaica, was sentenced to 40 months imprisonment;
Matthew Williams, 31, of Jamaica, was sentenced to 20 months imprisonment; and
Sean Gaynor, 28, of Jamaica, was sentenced to time served.
Mr. Ferrer commended the investigative efforts of ICE-HSI and USCG. This case was prosecuted by Special Assistant U.S. Attorney Kelly Blackburn and Assistant U.S. Attorney Jaime Raich.
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.
Atlantic County, N.J., Man Pleads Guilty to Conspiring to Defraud the Internal Revenue Service of Nearly $120,000 in TaxesRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted conspiring to defraud the IRS of $119,880 in income taxes over approximately three years, U.S. Attorney Paul J. Fishman announced today.
William Boland, 57, of Ventnor City, New Jersey, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to defraud the United States.
According to documents filed in the case and statements made in court:Boland and two conspirators were partners in Royal Rolling Chairs Inc., a business based in Atlantic City, New Jersey, that provided rolling chair transportation services to patrons on the Atlantic City boardwalk. Boland and his two partners were responsible for accurately reporting income received by the business to the IRS.
Boland admitted that he and his two partners hid gross cash receipts from the operation of the business and did not report this revenue to the IRS. He admitted the business maintained a second set of books, which tracked the unreported cash revenue taken out of the business. The total tax loss from the conspiracy was $119,800.
The count of conspiracy to defraud the United States carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is currently scheduled for May 4, 2015.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney=s Office Special Prosecutions Division in Camden and Trial Attorney Tino Lisella of the Tax Division of the U.S. Department of Justice.
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Defense counsel: John J. Zarych Esq., Northfield, N.J.
Boland, William Information
Atlanta Man Sentenced for WIC FraudRead the Press Release
NEWNAN, Ga. - Michael E. Benton has been sentenced for theft of public funds for unlawfully purchasing vouchers of the Georgia Women, Infants and Children (WIC) program in exchange for cash.
“As an authorized vendor in the WIC program, this defendant made a commitment to sell nutritional foods to low-income mothers and children,” said United States Attorney Sally Quillian Yates. “Instead he repeatedly exchanged food vouchers for cash, undermining an important program designed to protect the health of pregnant women and young children.”
Karen Citizen-Wilcox, SAC, United States Department of Agriculture, Office of the Inspector General, stated, “Individuals such as Michael Benton continue to think that the fraud perpetrated by them against Agriculture programs, such as the EBT and WIC program, will go unnoticed and unprosecuted. USDA-OIG is committed to working with its partners at the Georgia Department of Human Resources, local police departments like the Griffin Police Department, and DOJ to ensure that individuals like Mr. Benton continue to be prosecuted and sentenced to prison for defrauding both the programs meant to help people and the tax payers who fund such programs.”
According to United States Attorney Yates, the charges and other information presented in court: Benton owned and operated a small food store, “Healthy Oasis,” in Griffin, Ga., from August 2008 until December 2010. Healthy Oasis became an authorized Georgia WIC vendor in March 2009. Georgia WIC is a program that provides supplemental foods to low-income women who are pregnant, nursing, or postpartum, and to infants and children up to the age of five who are found to be nutritionally at risk. The U.S. Department of Agriculture provides federal funds to the state of Georgia for the WIC program. WIC program participants receive paper vouchers which are to be used exclusively for the purchase of authorized food items from retail vendors. Vendors can only accept WIC vouchers in exchange for the purchase of authorized food items. Vendors then deposit the vouchers into their bank accounts, where they are processed similarly to checks.
An investigation of Healthy Oasis was initiated in January 2010 after the Griffin Police Department received a complaint that WIC vouchers were being purchased in exchange for cash at the store. During an undercover investigation conducted from January through September 2010, Michael Benton and one of his employees, acting at Benton’s direction, purchased approximately 117 WIC vouchers in exchange for cash paid to the undercover agents, who were posing as WIC program recipients. Benton deposited the vouchers into the business bank account for Healthy Oasis. Georgia WIC cancelled Healthy Oasis’s vendor authorization in September 2010. Analysis of Georgia WIC records and the Healthy Oasis bank account, which Benton exclusively controlled, showed that Healthy Oasis redeemed hundreds of thousands of dollars more in WIC vouchers than other WIC-authorized vendor stores of comparable size in the same geographic area during the same period of time that Healthy Oasis was in operation.
Benton, 56, of Atlanta, Ga., was sentenced today by United States District Judge Timothy C. Batten, Sr., to three years and five months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,422,902.70 to the Georgia WIC program. Benton was convicted on these charges on June 6, 2014, after he pleaded guilty.
This case was investigated by the United States Department of Agriculture, Office of the Inspector General, with assistance from the Griffin Police Department.
Assistant United States Attorney Teresa D. Hoyt prosecuted 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 Newnan Division is http://www.justice.gov/usao/gan/.
Apopka Man Pleads Guilty to Investment FraudRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announces that John C. Boschert (43, Apopka) has pleaded guilty to conspiracy to commit wire fraud. Boschert is facing up to 20 years in federal prison and has also agreed to pay $11.6 million in restitution to his victims.
According to court documents, Boschert and his two conspirators, Jenifer E. Hoffman (38, Clermont) and Bryan T. Zuzga (37, Coldwater, Michigan), defrauded over 100 victims out of more than $11 million through investments offered in connection with a company called Assured Capital Consultants. As part of their solicitations, the conspirators represented to investors that money would be placed in a Performing Private Placement Investment, and that Boschert had connections to the trading program being used. Investors were told that their investments would be safe and that none of their money would leave the attorney escrow account that belonged to Zuzga, who was represented as being an attorney licensed in Florida. Investors were further advised that their funds would be used as collateral for a line of credit, which would then be used in trading.
None of those representations were true. Zuzga was not an attorney licensed in Florida or any other state, and the funds were not deposited into any escrow account controlled by him. Instead, the three operated a scheme in which money from later investors was paid to earlier investors. They also used some of the money from the scheme for themselves, including purchasing residences for Hoffman and Zuzga.
In a prior civil proceeding, the United States forfeited two residences belonging to Hoffman and Zuzga, which had been purchased with proceeds from the scheme. The United States obtained more than $850,000 from the sale of the properties. The proceeds from those sales were distributed to the victims of the scheme.
Hoffman and Zuzga have each been charged with one count of conspiracy and eleven counts of wire fraud. Hoffman has also been charged with one count of making a false tax return. Both are scheduled for trial in December 2014. If convicted, each faces a maximum penalty of 20 years in federal prison for each count of conspiracy and wire fraud, and Hoffman faces a maximum penalty of 3 years in federal prison for the false tax return.
An indictment is merely a formal charge that a defendant has violated one or more of federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Roger B. Handberg, James Mandolfo, and Nicole M. Andrejko.
Another Defendant Sentenced in Identity Theft Fraud Scheme Involving Personal Identifying Information from AT&T Customer FilesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Tracy Delva, 22, of Deerfield Beach, was sentenced to 37 months in prison, followed by three years of supervised release, and was ordered to pay $27,441 in restitution.
Delva previously pled guilty to one count of access device fraud, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On October 15, 2014, Jacqueline Nicole Lee Warrick, 26, of Miami, was sentenced to 30 months in prison, followed by three years of supervised release. Warrick pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On August 6, 2014, co-defendant Chouman Emily Syrilien, 25, of Lauderdale Lakes, was sentenced to 34 months in prison, to be followed by three years of supervised release. Syrilien pled guilty to one count of possession of 15 or more unauthorized access devices and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(3) and 1028A.
On October 1, 2014, Carlos Antonio Alexander, 24, of Orlando, was sentenced to 16 months in prison, followed by three years of supervised release. Alexander pled guilty to one count of using an authorized access device and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A.
On September 3, 2014, Angel Arcos, 23, of Pompano Beach, was sentenced to time served, to be followed by four years of supervised release. As a condition of his supervised release, Arcos was subject to 180 days of home detention with electronic monitoring. Arcos pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349.
On September 3, 2014, Monique Smith, 31, of Pompano Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft in violation of Title 18, United States Code, Section and 1028A. Arrington Basil Segu, 28, of Miami pled guilty to one count of access device fraud and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1028A. Sentencing for Smith and Segu is scheduled for November 19, 2014.
On September 22, 2014, Shantegra La’Shae Godfrey, 23, of Deerfield Beach, pled guilty to one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349. Sentencing is scheduled for December 3, 2014.
According to court documents, defendant Syrilien was employed by Interactive Response Technologies, Inc. (IRT) located in Margate. IRT provides staffing for call centers to handle direct sales and customer inquiries for AT&T. Syrilien unlawfully provided a co-conspirator with the personal identifying information from multiple AT&T customer files. Segu also unlawfully provided personal identifying information of numerous individuals to the co-conspirator.
Alexander, Delva, Godfrey, Smith and Warrick were added as “authorized users” on victims’ credit or debit card accounts or bank accounts to access the accounts of persons whose personal identifying information had been stolen. Once a co-conspirator’s name was added as an “authorized user,” the bank and/or credit card company was directed to mail additional debit or credit cards bearing the names of these newly added “authorized users” to their addresses or addresses under their control, all without the true account holder's knowledge or consent. The defendants used these credit and debit cards to make purchases or obtain money.
Delva and Warrick both utilized fraudulently obtained debit and credit cards that bore their names as additional “authorized users” on victims’ accounts to make both retail purchases as well as cash advances in excess of $28,000. Alexander, Smith and Godfrey made retail purchases as well as cash advances in excess of $24,000, $12,000 and $8,200, respectively.
Arcos allowed his personal information to be used to open a bank account to further the fraudulent activity. From September 16 to 18, 2013, five withdrawals totaling $13,000 were made from the fraudulent account and deposited into Arcos’ checking account.
The defendants face a maximum of 30 years in prison for the conspiracy charge, a maximum of 10 years in prison for the access device fraud charge, and a mandatory term of two years in prison for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
***media Advisory***Read the Press Release
ALBUQUERQUE –Justice Department and City of Albuquerque officials will make an announcement regarding the Albuquerque Police Department at a press conference to be held at 1:30 p.m. MDT, on Friday, Oct. 31, 2014, at the Albuquerque office of the U.S. Attorney for the District of New Mexico.
WHO: Acting Assistant Attorney General Vanita Gupta, Civil Rights Division
U.S. Attorney Damon P. Martinez for the District of New Mexico
Richard M. Berry, Mayor of the City of Albuquerque
Chief Gorden E. Eden, Jr., Albuquerque Police DepartmentWHAT: Press conference regarding Albuquerque Police Department
WHEN: FRIDAY, OCT. 31, 2014, 1:30 p.m. MDT
WHERE: U.S. Attorney’s Office
10th Floor Multi-Media Room (Reception on 9th Floor)
201 Third Street NW
Albuquerque, NM 87102
OPEN PRESSNOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Please plan on 20 to 25 foot throws for cameras. Media may begin to arrive at 1:00 p.m. MDT. Press inquiries regarding logistics should be directed to Ron Lopez at 505-224-1466.
***aviso a Los Medios De Comunicacion***Read the Press Release
ALBUQUERQUE – El Departamento de Justicia y oficiales de la Ciudad de Albuquerque daràn un anuncio referente al Departamento de Policía de Albuquerque durante una conferencia de prensa que se llevarà a cabo el viernes 31 de octubre, 2014 a la 1:30 p.m. MDT (tiempo de montaña), en la oficina de Procurador Federal por Nuevo México.
QUIÉN: Vanita Gupta, Procuradora General Asistente Interina, División de Derechos Civiles
Damon P. Martínez, Procurador Federal por el Distrito de Nuevo México
Richard M. Berry, Alcalde de la Ciudad de Albuquerque
Gorden E. Eden, Jefe del Departamento de Policía de la Ciudad de AlbuquerqueQUÉ: Conferencia de prensa para hacer el anuncio referente APD
CUÁNDO: VIERNES 31 DE OCTUBRE, 2014, 1:30 P.M. MDT
DÓNDE: Oficina del Procurador Federal
10˚ Piso Cuarto Multi-Media (Recepción en el 9˚ piso)
201 Tercera Calle, NW
Albuquerque, NM 87102
ABIERTO A LA PRENSANOTA: Todos los representantes de los medios de comunicación deberàn de presentar una identificación otorgada por el gobierno (tal como una licencia de manejar) así como credencial de miembro de la prensa, vigente. Representantes de los medios de comunicación pueden empezar a llegar a la 1:00 p.m. MDT. Preguntas de la prensa referentes a logística deberàn ser dirigidas a Ron López al 505-224-1466.
$555,587 Fraudulent Tax Refund Brings Federal Indictment for Madison WomanRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Madison woman on charges related to a scheme to obtain fraudulent tax refunds that included a $555,587 federal income tax refund deposited into her bank account, announced U.S. Attorney Joyce White Vance, IRS Criminal Division Special Agent in Charge Veronica Hyman-Pillot and FBI Special Agent in Charge Richard D. Schwein Jr.
A three-count indictment filed in U.S. District Court charges ANGELIQUE B. HARRIS, 48, with theft of government property, wire fraud and money laundering.
“Combating this type of tax refund scheme is a priority of the Justice Department because it harms the individuals whose identities are misused, as well as all U.S. taxpayers who fund the U.S. Treasury," Vance said. "Stealing from the IRS is stealing from every honest citizen who works hard and pays the taxes they owe. Such criminal conduct will be prosecuted," she said.
“Refund fraud is an egregious offense that affects honest taxpayers," Hyman-Pillot said. "Individuals who participate in refund schemes are stealing from the United States Treasury for personal gain. Internal Revenue Service Criminal Investigation has a zero-tolerance policy for refund fraud," she said. "Anyone who chooses to play a role in this crime will be investigated and ultimately prosecuted.”
“This type of fraud ultimately costs us all in some way," Schwein said. "That is why the FBI will continue working closely with our partners at IRS Criminal Division to hold scam artists and fraudsters to account.”
Count One of the indictment charges that Harris, aided by others who are not named, stole U.S. Treasury refunds between February 2013 and February 2014.
Count Two charges that Harris, again aided by others, committed wire fraud on Oct. 23, 2013, by causing the IRS to transfer a fraudulent $555,587 tax refund electronically from outside of Alabama to Harris' bank account at Iberia Bank in Huntsville. According to the indictment, Harris opened the Huntsville bank account and a fraudulent tax return in the name of a couple, identified in the indictment as “P. and A. O.,” was filed. The fraudulent tax return prompted the $555,587 IRS refund.
Count Three charges Harris with money laundering for using proceeds of the wire fraud on Oct. 28, 2013, to purchase a 2013 Lexus ES350 luxury automobile from a Huntsville dealership.
The indictment seeks to have Harris forfeit proceeds of the money laundering, including the Lexus.
The maximum penalty for theft of government property and money laundering is 10 years in prison and a $250,000 fine. The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
The IRS and FBI investigated the case, which Assistant U.S. Attorney Russell E. Penfield is prosecuting.
The public is reminded that and indictment contains only charges and a defendant is presumed innocent unless and until proven guilty.
29 October 2014
- Zapata National Bank Employee and Another Charged in Bank Fraud Scheme
Yonkers Man Arrested for Lying to Federal Authorities About Fake Threat Against the PresidentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced criminal charges today against JUAN MEDINA. MEDINA faces federal charges for lying to the United States Secret Service about his responsibility for making a fake emergency call about a plot to assassinate the President of the United States. MEDINA was arrested this morning at his home in Yonkers, and was presented this afternoon in White Plains federal court before United States Magistrate Judge Judith C. McCarthy, who released him on a $25,000 personal recognizance bond secured by two co-signers.
According to a Complaint filed today in White Plains federal court:
On or about August 29, 2014, when the President of the United States was visiting Westchester County, 911 emergency operators received a phone call reporting that a former roommate of the caller (“the suspect”) was traveling to New York with AR-14 and AK-47 firearms to kill the President. The caller, who identified himself only as “Hassan,” gave law enforcement the suspect’s address in New Haven, Connecticut, and a description of the roommate’s vehicle.
Following the 911 call, dozens of federal, state, and local law enforcement were dispatched in New York and Connecticut in an attempt to locate the roommate and his vehicle. Secret Service agents arrived at the suspect’s New Haven residence and interviewed his neighbors. Based on the results of their investigation, agents guided their interagency search teams to a few neighboring towns. Hours later, officers from the Hamden Police Department identified the suspect’s vehicle in a parking lot. Secret Service agents then located and interviewed the suspect at a nearby residence. Searches of the suspect’s vehicle and the residence revealed no evidence supporting the allegations in the 911 call. The suspect, who was surprised that the Secret Service was looking for him, cooperated with law enforcement and told agents that he believed an individual named “Juan,” who was a friend of his girlfriend, was responsible for the 911 call.
On or about September 1, 2014, Secret Service agents traveled to the home of the suspect’s girlfriend in Yonkers, New York. JUAN MEDINA, the defendant, answered the door. After being informed by the Secret Service agents that they were federal agents, MEDINA acknowledged that he disliked the suspect but, in response to questioning by the Secret Service about the 911 call, MEDINA denied having made the call.
On or about September 3, 2014, JUAN MEDINA voluntarily agreed to be interviewed by the Secret Service and Yonkers police. During the interview, MEDINA again denied making the 911 call about the plot to kill the President, and he denied knowing who made the call. MEDINA provided a written statement summarizing his denial.
At the request of the Secret Service, MEDINA agreed to be interviewed again. During this interview, MEDINA admitted that he was the one who made the 911 call. MEDINA told the Secret Service that he had made the call using a pre-paid “burner” cellphone, which he later sold on the street. MEDINA said he made the call because he did not approve of the relationship between his former roommate (the suspect) and the girlfriend, and he wanted to get his former roommate in trouble.
MEDINA, 30, a resident of Yonkers, New York, is charged with one count of making false statements to federal authorities, which carries a maximum sentence of 5 years’ imprisonment. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Bharara praised the investigative efforts of the United States Secret Service and their law enforcement partners, specifically the New York State Police, the Yonkers Police Department, the Connecticut State Police, the Hamden Police Department, the New Haven Police Department, the Fairfield Police Department, the East Haven Police Department, the Westchester County Department of Public Safety, and the FBI’s Joint Terrorism Task Forces in White Plains, New York and New Haven, Connecticut.
The charges contained in the federal Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Jessica K. Feinstein is in charge of the prosecution
Medina Complaint
Williston Man Found Guilty of Felon in Possession of a FirearmRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on October 29, 2014, GABRIEL LAZARO GARCIA-HERNANDEZ, a/k/a GABRIEL L. GARCIA, 54, Williston, N.D., was found guilty by a federal jury on a charge of felon in possession of a firearm and ammunition and possession of a firearm with an obliterated serial number.
On January 7, 2014, officers with the Northwest Narcotics Task Force executed a search warrant at Garcia-Hernandez’s residence in Williston, N.D. They found a small amount of marijuana, drug paraphernalia, five firearms and over 300 rounds of various brands and calibers of ammunition. One of the firearms, a .22 caliber rifle, had the serial number scratched off to the point it was illegible. The other four firearms were handguns.
Garcia-Hernandez was prohibited from possessing either a firearm or ammunition by virtue of multiple felony convictions, including 1991 New Jersey convictions for aggravated assault and armed robbery, a 1995 Florida conviction for aggravated assault with a deadly weapon, and 2003 Florida convictions for armed robbery and kidnapping.
The charge of felon in possession of a firearm and ammunition carries a statutory maximum penalty of life in federal prison and a $250,000 fine. The charge of possession of a firearm with an obliterated serial number carries a statutory maximum penalty of five years in federal prison and a $250,000 fine. Sentencing for Garcia-Hernandez has not been scheduled.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Northwest Narcotics Task Force, the Williams County Sheriff’s Office, the Williston Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney David Hagler is prosecuting the case.
Washington County Man Charged with Theft of Government PropertyRead the Press Release
PITTSBURGH - A Washington County resident has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property, United States Attorney David J. Hickton announced today.
The one-count indictment returned on October 28, named Gregory Kavalec, 68, as the sole defendant.
According to the indictment presented to the court, from on or about Oct. 3, 2013, to on or about Sept. 3, 2014, Kavalec unlawfully received property of the United States, that is, OASDI Social Security benefits in the amount of approximately $17,985.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Bond has been requested at $10,000 unsecured.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The Social Security Administration-Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Van Zandt County Convicted Felon Sentenced for Federal Firearms ViolationRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas - A 27-year-old Grand Saline, Texas, man has been sentenced to federal prison for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
James Matthew Herring pleaded guilty on Aug. 6, 2014, to being a felon in possession of a firearm and was sentenced to 63 months in federal prison today by U.S. District Judge Leonard Davis.
According to information presented in court, on Jan. 21, 2014, Herring was stopped by a sheriff’s deputy because he matched the description of a burglary suspect. During the traffic stop, a revolver and a semi-automatic pistol were located on the ground near the car. Drug paraphernalia, cash, and methamphetamine were also found in a bag near the vehicle. Herring submitted to a search of the car, during which deputies located another revolver in the dash where the radio had been and a bag of ammunition in the trunk. Further investigation revealed Herring was a convicted felon having been found guilty of theft and evading arrest with a vehicle in Collin County, Texas. As a convicted felon, Herring is prohibited by federal law from owning or possessing firearms or ammunition. Herring was indicted by a federal grand jury on Apr. 23, 2014.
This case was prosecuted as part of Project Safe Neighborhoods, aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the ATF, the Grand Saline Police Department and the Van Zandt County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.Utah Resident Pleads Guilty to Tax Evasion, Filing over $1.5 Million in False Claims for Refunds and Presenting $6.05 Million in Ficticious Financial InstrumentsRead the Press Release
A man from Sandy, Utah, pleaded guilty today to one count of tax evasion, five counts of filing false claims for income tax refunds and three counts of filing fictitious obligations, the Justice Department and Internal Revenue Service (IRS) announced.
Paul Ben Zaccardi, who was charged by superseding indictment on Jan. 8, was released following his guilty plea and is scheduled to be sentenced on March 11, 2015, before U.S. District Judge Tena Campbell.
According to the superseding indictment, in April 2004, Zaccardi embarked on a scheme to evade the payment of his income taxes. As part of that scheme, Zaccardi re-titled his residence so that it was not in his name and caused his business receipts to be deposited into his wife’s account.
Zaccardi also presented five separate tax returns to the IRS claiming bogus refunds totaling $1,510,251. In addition, from June 2008 to October 2011, Zaccardi presented three false and fictitious financial instruments to the IRS, the U.S. Treasury and the U.S. District Court for the District of Utah for a combined total of $6.05 million for the purported payment of his federal income tax liabilities.
Zaccardi faces a statutory maximum sentence of 25 years in prison for each conviction of submitting fictitious obligations to the United States, a statutory maximum sentence of five years in prison for each conviction of presenting false, fictitious and fraudulent claims to the United States and a statutory maximum sentence of five years in prison for the tax evasion conviction.
This case was investigated by IRS-Criminal Investigation and prosecuted by Trial Attorneys Stuart Wexler and Ryan Raybould of the Justice Department’s Tax Division.
United States Attorney and California Attorney General Collaborate to Present First in A Series of Labor Trafficking TrainingsRead the Press Release
FRESNO, Calif. — On Friday, October 24, 2014, a training aimed at combatting the serious crime of labor trafficking was held, organized by U.S. Attorney Benjamin B. Wagner in conjunction with California Attorney General Kamala Harris. The training in Fresno was the first in a series of trainings on labor trafficking planned to be held in Sacramento, Bakersfield, and other California cities.
U.S. Attorney Wagner stated: “Labor trafficking is often an invisible crime. Our goal is to train government workers, who may be at worksites for other purposes, to see the signs of forced labor and to report it. While federal and state laws exist to combat forced labor, they have no power if no one reports it.”
The training was attended by federal, state, and local workers who visit worksites as part of their duties, including employees from the U.S. Department of Labor, California’s Employment Development Department, Department of Industrial Relations, Department of Fair Employment and Housing, the Agricultural Labor Relations Board, and Fresno, Kern, and Madera Counties’ departments of Environmental Health, Public Health, and Child Protective Services.
Ronna Bright, program manager of Central Valley Against Human Trafficking introduced the topic of labor trafficking. Jamelia Hines presented her story of domestic servitude. Speakers from the FBI, Homeland Security Investigations, U.S. Department of Labor, and California’s Department of Industrial Relations presented key indicators of labor trafficking and Fresno Police Sergeant Curt Chastain told how to report the crime.
One of the speakers, Mike Prado, Resident Agent in Charge of Homeland Security Investigations in Fresno stated: “Human trafficking, including forced labor trafficking, amounts to modern day slavery and represents one of the most deplorable crimes HSI investigates. Sadly, the egregious exploitation of workers by unscrupulous individuals and businesses occurs more frequently in the Central Valley than many people realize. Our hope is that by vigorously enforcing trafficking laws and raising public awareness, we can reduce the level of exploitation and bring those responsible to justice.”
If you or anyone you know is a victim of labor trafficking, you may call the National Human Trafficking Resource Center at any time at 1 (888) 373-7888. You may also text “HELP” or “INFO” to 233733, or visit traffickingresourcecenter.org.
Undocumented Alien, Elizar Gustavo Garcia-garcia, Pleads Guilty to Illegal ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ELIZAR GUSTAVO GARCIA-GARCIA, age 30, a citizen of Honduras, pled guilty today to a one-count Bill of Information charging him with illegal reentry of a removed alien.
According to the Bill of Information, on or about August 4, 2014, GARCIA-GARCIA was found in the United States after having been officially deported and removed on or about March 11, 2014.
GARCIA-GARCIA faces a maximum term of imprisonment of two years and a fine of $250,000, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Stanwood R. Duval, Jr. set sentencing for January 28, 2015.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Irene Gonzàlez is in charge of the prosecution.
US Department of Justice - Election Day ProgramRead the Press Release
United States Attorney Timothy Q. Purdon announced today that Assistant United States Attorney (AUSA) Rick L. Volk will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Volk serves as the District Election Officer (DEO) for the District of North Dakota, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Purdon said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Purdon stated that AUSA/DEO Volk will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: 701-530-2420 or 1-888-828-8050.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The FBI’s Election Crimes Coordinator for the District of North Dakota can be reached by the public at 763-569-8000.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Purdon said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
U.S. Department of Justice Nationwide Election Day ProgramRead the Press Release
U.S. Attorney’s Office for the Western District of North Carolina Leading Local Efforts
CHARLOTTE, N.C. – U. S. Attorney Anne M. Tompkins announced today that Michael E. “Mike” Savage and Richard Edwards, Assistant United States Attorneys (AUSAs) in the Charlotte and Asheville offices of the U.S. Attorney for the Western District of North Carolina will lead the efforts of this Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSAs Savage and Edwards have been appointed to serve as the District Election Officers (DEOs) for the Western District of North Carolina and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Tompkins said, “Every citizen must be able to vote without interference or discrimination. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Tompkins stated that AUSA/DEO Savage will be on duty in the Charlotte Office and AUSA/DEO Edwards in the Asheville Office while the polls are open. They can be reached by the public at the following telephone numbers:
In Charlotte: 704-344-6222 and in Asheville: 828-271-4661.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 704-672-6100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php. United States Attorney Tompkins said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”U.S. Attorney's Office and Anti-Defamation League Commemorate 5th Anniversary of the Federal Hate Crimes ActRead the Press Release
BOSTON – The United States Attorney's Office and the Anti-Defamation League’s (ADL) New England Division hosted an event yesterday commemorating the 5th anniversary of the signing of the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act.
On Oct. 28, 2009, President Barack Obama signed this landmark legislation which greatly expanded the federal government’s ability to prosecute hate crimes. The law enables the Justice Department to prosecute crimes motivated by race, color, religion and national origin without having to show that the defendant was engaged in a federally protected activity. The Shepard-Byrd Act also empowers the Department of Justice to prosecute assaults committed because of a person’s sexual orientation, gender identity, gender or disability as hate crimes. The law also marked the first time that the words, "lesbian, gay, bisexual and transgender" appeared in the United States Code.
“For over a decade, a coalition of civil rights, religious and law enforcement leaders from across the nation persistently advocated for a law to strengthen the protections against crimes based on race, color, religion, national origin, sexual orientation and gender identity -- a law, which in a perfect union, would not be necessary,” said United State Attorney Carmen Ortiz.
The law, which was a rider to the National Defense Authorization Act of 2010, was also fiercely advocated by the families of Matthew Shepard and James Byrd, Jr. In 1998, Matthew Shepard— a 21-year-old gay college student at the University of Wyoming was robbed, tortured, tied to a fence along a country road and left to die by two men who offered him a ride home from a local bar. That same year, James Byrd Jr.—a 49-year-old African-American man living in Jasper, Texas—accepted a ride home from three men who drove him to the remote edge of town where they beat him severely, tied him by the ankles to the back of a pickup truck, and dragged him to his death.
While the men responsible for the Shepard and Byrd killings were later convicted of murder, none of them were prosecuted for committing a hate crime. At the time these murders were committed, neither Wyoming nor Texas had a hate crimes law, and existing federal hate crimes protections did not include violent acts based on the victim’s sexual orientation and only covered racial violence against those engaged in a federally protected activity, such as voting or attending school.
During his remarks yesterday, Robert Trestan, Regional Director of ADL’s New England Division, said, “In the United States bigotry cannot be outlawed, but hate crime laws demonstrate an important commitment to confront and deter criminal activity motivated by prejudice. Hate crimes continue to impact communities at a rate of almost one every hour. Today’s anniversary is an opportunity for us to increase our efforts at preventing these crimes from happening in the first place by focusing on training and outreach.”
The event also featured Mary L. Bonauto, Civil Rights Project Director at Gay & Lesbian Advocates & Defenders (GLAD). Attorney Bonauto has litigated groundbreaking cases expanding the rights of same-sex couples. Her work has been recognized with numerous awards, including most recently the 2014 MacArthur Fellowship.
Among other reflections, Ms. Bonauto shared her view on the impact of this law: “Laws affect attitudes. This law says that criminal acts committed with bias will be punished more severely because they strike beyond the individual and his or her family to a wider community.”
The Macedonia and First Church of God in Christ in Springfield is one of those communities that had been affected by bias and prejudice. On Nov. 5, 2008, hours after President Barack Obama was elected as the nation’s first black president, Thomas Gleason, Michael Jacques and Benjamin Haskell set fire to the predominantly black church.
Bishop Bryant Robinson, Jr., Pastor of the Macedonia and First Church of God in Christ also made remarks at the event. He expressed his gratitude for those who helped to bring those responsible to justice which provided “a degree of healing” to his congregation. In his message, he stated that, “we have much that we can celebrate, but we have so many more miles to journey.”
Individuals are encouraged to report incidents of hate to their local police department, the FBI or an advocacy group.
More about the Shepard-Byrd Act can be found at http://www.justice.gov/crt/about/crm/matthewshepard.php
U.S. Attorney Will Monitor Election Complaints in KansasRead the Press Release
KANSAS CITY, KAN. - A federal prosecutor will be on duty during election day to respond promptly to complaints of possible election fraud and voting rights violations in Kansas, U.S. Attorney Barry Grissom said today.
Assistant U.S. Attorney Leon Patton will be available to the public at 913-551-6730 while the polls are open on Nov. 4.“Anyone who has evidence of possible electoral corruption or voting rights abuses should call my office immediately,” Grissom said.
Grissom said he does not expect any problems during the voting, but warned that there are penalties under federal law for any efforts to fraudulently influence the outcome of the election or to improperly prevent another person from exercising the right to vote.
As the lawyer in the Kansas U.S. Attorney’s Office responsible for election matters, Patton will join other federal prosecutors across the nation as part of the election-day program of the U.S. Department of Justice. They will be responsible for overseeing the handling of complaints of election fraud and voting rights abuses in consultation with Justice Department headquarters.
The FBI’s Kansas City Field Office will also have Special Agents available to receive allegations of election fraud, intimidation, suppression, and other election abuses. The public can provide information regarding possible election crimes to the FBI’s Kansas City Field Office’s toll-free hotline, 1-855-527-2847, or email [email protected] .
Citizen complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or 202-307-2767, by fax at 202-307-3961, by email to [email protected], or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Any questions involving state or local issues may be referred to the Elections Division of the Kansas Secretary of State’s Office at 785-296-4561 or 1-800-262-8683, or to the pertinent county election office.
Two New Jersey Residents Charged with Fatal Robbery of Ossining ManRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Joseph Burton, Jr., the Chief of Police of the Village of Ossining Police Department, announced the filing of a federal criminal Complaint charging ANTHONY GRECCO, 33, of Manville, New Jersey, and ANDREA BEATTY, 27, of New Brunswick, New Jersey, in connection with the fatal robbery of Ryan Ennis of Ossining, New York. BEATTY was arrested this morning and is expected to be presented later today in White Plains federal court before United States Magistrate Judge Judith C. McCarthy. GRECCO is currently detained at the Somerset County Jail in Somerville, New Jersey. It is expected that he will be presented in White Plains federal court later this week.
U.S. Attorney Preet Bharara stated: “As alleged in the Complaint, the defendants carried out a violent robbery that resulted in a brutal death. Thanks to the dogged investigative work of the FBI and the extraordinary dedication of our local partners, the defendants will have to answers for their crimes. I particularly want to thank District Attorney Janet DiFiore and her team at the Westchester County District Attorney’s Office for their assistance with this investigation.”
Assistant Director in Charge George Venizelos stated: “This murder was as violent as it was gruesome and is the most recent example of the violence drugs can cause. The impressive cooperation between the Ossining Police Department, Westchester District Attorney and federal law enforcement made today’s arrest a reality.”
Chief Joseph Burton, Jr. of the Village of Ossining Police Department stated: Chief Joseph Burton, Jr. of the Village of Ossining Police Department stated: “I would like to thank all of the agencies that helped us continue our investigation across state lines, especially the Westchester County District Attorney’s Office, the Westchester County Police Forensic Investigation Unit, the United States Attorney’s Office, the Federal Bureau of Investigation and all of our counterparts in New Jersey. I am especially proud of Detective Lieutenant William Sullivan for his leadership and the members of the Ossining Police Department Detective Division for their dedication and perseverance. Their determination and tenacious approach were critical in apprehending these suspects. This was a total team effort involving 10 law enforcement agencies from New York and New Jersey, all working together as a team, which resulted in the timely arrest of these two defendants. Hopefully this will give some closure to the victim’s family.”
According to allegations in the Complaint:
On August 27, 2014, shortly after 9:00 p.m., Ryan Ennis was found dead in an apartment in Ossining, New York. An autopsy was performed, and Ennis’s death was ruled a homicide. There was a large wound to the left side of Ennis’s neck, a large wound to the back of Ennis’s head, and additional wounds on his abdomen and upper left arm. The medical examiner determined that Ennis had been killed between 18 and 36 hours earlier.
The account history for Ennis’s cellphone shows that on August 26, 2014, between the hours of 9:37 a.m. and 7:28 p.m., there were 35 text messages between Ennis’s cellphone and a cellphone identified as belonging to GRECCO. The text messages discuss a drug transaction between Ennis and GRECCO scheduled to take place after 4:00 p.m. on August 26.
After the 7:28 p.m. message between Ennis and GRECCO on August 26, no other text messages were received by, or transmitted from Ennis’s cellphone. There was an incoming call to Ennis’s cellphone at 7:36 p.m. from GRECCO’s phone. Cellphone data shows that at the time of the 7:36 p.m. call, GRECCO’s phone was located in the vicinity of Croton Avenue, at the intersection of Routes 9 and 133, approximately half a mile from the apartment where Ennis was found dead.
On September 23, 2014, law enforcement officers interviewed GRECCO in Manville, New Jersey. During the interview, GRECCO admitted that in August he traveled to New York with another person for the purposes of robbing Ennis, to whom GRECCO had sold marijuana in the past, and that the robbery had not gone according to plan.
On October 22, 2014, law enforcement officers interviewed BEATTY in Ossining, New York. BEATTY admitted that in August 2014, she went to New York with GRECCO and another man for the purpose of committing a robbery. BEATTY knew before she made the trip that GRECCO intended to rob a man who owed him money in connection with drugs. BEATTY described the apartment complex where she drove GRECCO to commit the robbery and led officers to the apartment where Ennis was found dead.
BEATTY recalled that when GRECCO came back to her car after going into the apartment building to commit the robbery, he appeared flustered and said that the robbery had not proceeded according to plan. GRECCO also said, in effect, that “it” had been easier than he thought it would have been.
After they left the apartment complex, BEATTY drove GRECCO to a rooming house in New Jersey. Inside of the rooming house, GRECCO handed BEATTY a stack of money. She later counted it and found that it totaled $8900. GRECCO used the rooming house bathroom to shower. When he came out of the bathroom, he was carrying a garbage bag with clothing in it. GRECCO asked BEATTY if she knew where he could dispose of the clothing.
The Complaint charges GRECCO and BEATTY each with one count of Hobbs Act Robbery and one count of conspiracy to commit Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951. If convicted of the two offenses charged in the Complaint, GRECCO and BEATTY each face a combined maximum prison term of 40 years. The maximum potential sentences are prescribed by Congress and are provided for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the Ossining Police Department and the FBI’s Westchester County Violent Crimes Task Force, which is comprised of investigators from the FBI, the Westchester County Department of Public Safety, the Westchester County District Attorney’s Office, and the City of Yonkers Police Department. Mr. Bharara also thanked the following agencies for their assistance with the investigation: the FBI’s Newark Division; the Manville, New Jersey Police Department; the New Brunswick, New Jersey Police Department; the Middlesex County Prosecutor’s Office; and the Somerset County Prosecutor’s Office.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Michael Gerber and Scott Hartman are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Grecco et al.Complaint
Grecco et al.Complaint
Two Montgomery Men Sentenced for $900K Tax Refund SchemeRead the Press Release
Montgomery, Alabama - Yesterday, two Montgomery men were sentenced for their roles in a tax refund scheme, announced U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.
Edmund Lee McCall (39) was sentenced to 108 months imprisonment for conspiracy to commit wire fraud, and 24 months for aggravated identity theft. When combined with his conviction for bank and wire fraud and aggravated identity theft from a prior case, McCall will serve a total of twenty-years in prison for his financial fraud crimes. McCall’s Co-Defendant, Antonio Devon Harris (39), was sentenced to 87 months imprisonment for conspiracy to commit wire fraud and 24 months for aggravated identity theft. Both defendants’ sentences will be followed by 3 years of supervised release.
From 2010 to 2012, McCall and Harris employed a scheme to file false tax returns by obtaining the names, social security numbers, dates of birth, and other personal identifying information of unsuspecting individuals. They would use this information to create W2s with fraudulent employee and wage information and would then file fraudulent income tax returns on-line.
As part of the scheme, McCall and Harris also created a fraudulent tax preparing business. They used this business as a front to order a large number of pre-paid credit cards and had a false tax return proceeds diverted to the cards for their own use. Using this scheme, they were able to steal approximately $920,872.00 from the Internal Revenue Service. Both men were ordered to make restitution in that amount to the IRS.
This case was investigated by the United States Department of Treasury Internal Revenue Service Criminal Investigation Division, the United States Postal Inspection Service, and the United States Secret Service. The case was prosecuted by Assistant United States Attorney Denise O. Simpson.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Timothy Thomas, Former Owner of United Benefits of America, and Wife IndictedRead the Press Release
Telemarketing Company Misrepresented Health Care Benefit Plans in $15 Million Scheme That Defrauded Thousands Seeking Health Care Coverage
Timothy Thomas, 52, and his wife, Kennan Dozier Thomas, 56, of Franklin, Tenn., were indicted today on charges related to the operation of United Benefits of America, LLC, a telemarketing company that sold health benefits on behalf of various companies, announced United States Attorney David Rivera.
Specifically, Timothy Thomas was indicted on charges of wire fraud, mail fraud, money laundering, and criminal contempt. Also indicted was Thomas’ wife, Kennan Dozier Thomas, who faces charges of money laundering and criminal contempt. The contempt charges are based on the Thomas’ transfer of funds, in violation of an order freezing assets that was issued by the U.S. District Court for the Middle District of Tennessee in a related case. Thomas and his wife had been prohibited by the U.S. District Court from making such transfers.
“Schemes such as this, that target individuals who so desperately need health insurance, are particularly egregious and the U.S. Attorney’s Office and our law enforcement partners will direct all necessary resources to thoroughly investigate and bring justice to those who would inflict such harm and leave such a vulnerable group in the wake of their greed,” said U.S. Attorney David Rivera.
According to the indictment, from 2007 through August 2010, Timothy Thomas operated United Benefits of America, LLC (also known as Health Care America and United States Benefits, among other names). Thomas entered into contracts with various companies to market “limited benefits plans,” “association memberships,” health benefits, health insurance, or other “lifestyle benefits” sold by those companies. Thomas bundled the products of one or more of those companies into “benefits packages” which he marketed to consumers, including self-employed individuals, small business owners, and employees of small businesses.Whenever a representative of United Benefits sold a “benefits package,” Timothy Thomas received a fee or a commission for each product from the company whose product was sold. If consumers kept their “benefits package” for a certain period of time, Thomas received additional commission payments.
The majority of the “benefits packages” sold by United Benefits were actually nothing more than “association memberships,” which included a combination of “limited benefit plans,” accidental life insurance, other “lifestyle benefits,” or various products that entitled the purchaser to certain limited medical benefits or discounts on prescription drugs.
The indictment alleges that Timothy Thomas directed sales representatives to place telephone calls to individuals in an effort to sell the “benefits packages” marketed by United Benefits. The indictment further alleges that the majority of consumers contacted by United Benefits sales representatives were targeted because they did not have major medical health insurance because they had lost their jobs, or they were paying a high price for temporary continuation of group coverage, or they were not eligible for major medical health insurance because they had pre-existing medical conditions.
The indictment also alleges that Timothy Thomas was aware that United Benefits sales representatives made various misrepresentations and material omissions to consumers in order to sell the “bundled products” marketed by United Benefits, including misrepresentations that the “limited health benefits” offered by Untied Benefits were major medical health insurance or the equivalent of major medical health insurance. Sales representatives also misled consumers about the limitations on the coverage offered by United Benefits, intentionally misleading consumers into believing that purchasing a plan offered by United Benefits required the consumer to be approved or accepted, or misleading customers that there was only a limited time during which the consumer could enroll in the plans.
In February 2009, after receiving complaints that sales representatives at United Benefits were grossly misrepresenting the actual benefits of the products they were selling, the Tennessee Department of Insurance searched the United Benefits office and seized voluminous materials and records. In April and May 2009 WSMV-TV in Nashville, Tenn., aired a series of news stories about United Benefits, during which they interviewed consumers complaining that they had been misled by United Benefits employees and televised footage from a hidden camera in which United Benefits employees were seen and heard discussing misleading sales practices.
According to the indictment, Timothy Thomas set up an employee disciplinary system designed to “fine” employees when they made misrepresentations. However, Thomas often waived or reduced the fines, and the “fined” employees continued to receive a monetary bonus for their sales tactics. Moreover, the indictment alleges that when Thomas learned about specific misrepresentations by sales representatives, he took no action to inform consumers or to reverse the sales. In fact, Thomas rarely fired employees for making misrepresentations or material omissions.
According to the indictment, Thomas, in an effort to deceive regulatory authorities, consumers, and companies with whom United Benefits contracted, used other corporate names and caused other individuals to be named as officers in company documents in order to conceal his ownership and control of the company.
The indictment also alleges that Thomas received payments of approximately $15.7 million for the plans offered by United Benefits.
On August 3, 2010, the Federal Trade Commission and the State of Tennessee filed a complaint against United Benefits and Timothy Thomas and Keenan Dozier Thomas, in the United States District Court for the Middle District of Tennessee. On August 4, 2010, a United States District Court judge issued a Temporary Restraining Order that prohibited Timothy Thomas and Kennan Dozier Thomas from transferring any funds owned or controlled by them or by United Benefits. The prohibition applied to any assets of Timothy Thomas, Kennan Dozier Thomas, or United Benefits at the time of the issuance of the order, or any funds which were assets derived from the conduct described in the complaint and obtained after the time of issuance of the order.
According to the indictment, the day following the issuance of the order, Timothy Thomas violated the Court’s order by withdrawing funds totaling over $124,000 from bank accounts he and his wife controlled. Also in violation of the order, on August 6, 2010, Timothy Thomas and Kennan Dozier Thomas asked a friend to deposit into her bank account, approximately $411,000 in commission payments that Timothy Thomas had received through his operation of United Benefits, in order to conceal those funds.
"Deceptively marketing medical discount plans as major medical health insurance creates traumatic hardships for victims,” said A. Todd McCall, Special Agent in Charge of the Memphis Division of the FBI. “Today's indictment represents the collaborative efforts of our law enforcement partners and our commitment to seek justice for victims."
“The U. S. Postal Inspection Service is committed to protecting the American Public from individuals who make misrepresentations to prey on innocent victims,” said Thomas L. Noyes II, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service. “The collaborative effort between federal agencies in this case is an excellent example of the partnerships that focus on bringing those to justice who violate the law and defraud hardworking citizens.”
If convicted, Timothy Thomas faces up to 20 years in prison and a fine of $250,000 on each count of wire fraud and mail fraud, and 20 years in prison and a fine of $500,000 on each count of money laundering. Kennan Dozier Thomas faces up to 20 years in prison and a fine of $500,000 on the one count of money laundering in which she is charged. The court retains discretion as to the penalty to be imposed if they are convicted of criminal contempt.
This case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the U.S. Department of Labor Employee Benefits Security Administration’s Health Benefits Security Project (HBSP) which focuses on egregious and corrupt health arrangements. The project further seeks to identify potential criminal violations and to assist the victims of crimes related to employee health benefits.
Assistant United States Attorneys Kathryn W. Booth and William F. Abely represent the government.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Thurmont Heroin Dealer Sentenced to 7 Years in PrisonRead the Press Release
Sold Heroin to a Customer Resulting in the Man’s Death
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced Kathleen Elizabeth Myers, age 21, of Thurmont, Maryland today to 7 years in prison followed by three years of supervised release for conspiracy to distribute and possess with intent to distribute heroin. Judge Quarles also ordered Myers to pay more than $7,000 in restitution, to cover the medical costs and funeral expenses of the person who died after Myers and a co-defendant supplied him with heroin.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Colonel Marcus L. Brown, Superintendent of the Maryland State Police.
According to Myers’ plea agreement, between July 2012 and June 2014, Myers conspired with others, including Jacob Alexander Powell, to distribute heroin in western Maryland. Myers and Powel regularly obtained heroin from sources in Baltimore and re-sold that heroin to customers in and around Thurmont and Emmitsburg, Maryland.On June 11, 2013, Myers and Powell sold heroin to Derek Dunsmore in Emmitsburg. The heroin Myers and Powell sold caused the death of Derek Dunsmore.
Jacob Powell, age 21, of Thurmont, previously pleaded guilty to the same charge and faces a maximum penalty of 20 years in prison. Judge Quarles has scheduled his sentencing for November 4, 2014, at 1:00 p.m.
United States Attorney Rod J. Rosenstein praised the DEA, Frederick County Sheriff’s Office, Maryland State Police and the Frederick County Narcotics Task Force for their work in the investigation and thanked Special Assistant U.S. Attorney Anthony J. Enright and Assistant U.S. Attorney Robert R. Harding, who prosecuted the case.Three Sentenced in Fraudulent Mississippi Driver’s License CaseRead the Press Release
Hattiesburg, Miss – Yolanda Jean Perkins, 48, of Laurel, a former driver’s license examiner for the Mississippi Department of Public Safety; Lorena Gomez, 33, of Laurel; and Elmer Enrique Martinez-Velasquez a/k/a Jose Martell Rivera, 32, an illegal alien from Mexico residing in Albertville, Alabama, were sentenced in U.S. District Court on October 27, 2014 for conspiracy to commit ID theft, United States Attorney Gregory K. Davis announced today.
Perkins was sentenced to 24 months in prison followed by three years of supervised release. She was also ordered to pay a $5000 fine and $2500 in restitution. Perkins was involved in the sale of 167 fraudulent driver’s licenses or ID cards.
Gomez was sentenced to 39 months in prison followed by three years of supervised release. She was also ordered to pay a $5000 fine and $2500 in restitution.
Martinez-Velasquez was sentenced to 24 months in prison followed by three years of supervised release and $2500 in restitution. He was further ordered to be turned over to immigration authorities after his term of imprisonment for possible deportation.
The defendants were ordered to forfeit $4,928 in U.S. currency and one HP Laptop computer. A money judgment in the amount of $28,850 was also ordered.
“HSI will continue to work with MBI and our other law enforcement partners to investigate these kinds of cases and ensure that our national security is not compromised by illegal activities like this,” said Special Agent in Charge Raymond Parmer with Homeland Security Investigations. Parmer oversees a five-state area which includes Mississippi, Alabama, Arkansas, Louisiana, and Tennessee.
The case was investigated by Homeland Security Investigations and the Mississippi Bureau of Investigation. It was prosecuted by Assistant United States Attorney Annette Williams.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Three Dover Men Indicted for Conspiracy Involving Straw Purchase of HandgunRead the Press Release
WILMINGTON, Del. – Charles M. Oberly III, United States Attorney for the District of Delaware, announced that an Indictment has been handed down by a federal grand jury charging Shakil Miller (age 21), Jon Henry (age 20), and Corey Harris (age 19), all of Dover, with Conspiracy to Provide False Information to a Federal Firearms Licensee, in violation of Title 18 U.S.C. Section 371, and separately charging Miller with Providing False Information to a Federal Firearms Licensee, in violation of Title 18 U.S.C. Section 922(a)(6) and 924(a)(2). The defendants face up to 5 years imprisonment and a maximum of $250,000 fine on the Conspiracy count, and Miller faces 10 years imprisonment and a $250,000 fine on the Providing False Information count.
The Indictment alleges that Miller traveled with Henry and Harris to Milford Trade and Exchange to purchase a firearm for others. After Harris picked out a particular handgun for purchase, Miller filled out an ATF Form 4473 for that firearm and falsely represented that he was the actual transferee or buyer of the handgun. In reality, Miller was purchasing the firearm, at Harris’ request, for others. Miller is alleged to have acted as a straw purchaser. The prosecution of straw purchasers and those with whom they allegedly conspire is an important step in keeping firearms out of the hands of those who will not or cannot lawfully purchase firearms.
This case is the result of an investigation conducted by the Dover Police Department and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution is being handled by Assistant United States Attorney Jennifer K. Welsh.
The charges in the Indictment are only allegations. The defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Texas Oil Company to Pay $1.6 Million Civil Penalty in Settlement of Alleged Oil Spill and Spill Prevention ViolationsRead the Press Release
Superior Crude Gathering Inc. (Superior Crude) has agreed to pay a civil penalty for alleged violations of the Clean Water Act stemming from a 2010 crude oil spill from tanks at Superior’s oil storage facility in Ingleside, Texas, the Department of Justice and the Environmental Protection Agency (EPA) announced today. Under the consent decree lodged today in federal court, Superior will pay $1.61 million to resolve the government’s claims.
The United States’ complaint, which was also filed today in the U.S. District Court for the Southern District of Texas, alleges that Superior discharged at least 2,200 barrels (or 92,400 gallons) of crude oil in violation of Section 311 of the Clean Water Act. The oil discharged from two tanks at the facility on Feb. 9 and 10, 2010, and crude oil flowed into an unnamed lake and wetlands near the Intracoastal Waterway and Redfish Bay. The complaint also includes related violations of the Clean Water Act’s spill prevention, control, and countermeasure regulations and spill response plan regulations.
The $1.61 million penalty is in addition to the costs incurred by Superior Crude to respond to the oil spill and to repair the tanks and containment areas. Superior Crude has ceased operations at the facility, which is located within the former Falcon Refinery.
“Operators have a responsibility to prevent oil spills and protect the public and the environment through vigilance and preparation,” said Acting Assistant Attorney General Sam Hirsch for the Justice Department’s Environment and Natural Resources Division. “This settlement underscores the consequences of failing to meet that responsibility.”
“Water resources are precious, especially in Texas,” said EPA Regional Administrator Ron Curry. “We rely on businesses to be effective partners in protecting these resources, and to take responsibility when their operations harm the environment.”
The Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. The penalty paid for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Fund Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.
The proposed consent decree, lodged in the Southern District of Texas, is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website.
Texas Electronics Business Sentenced for Violating Cash Reporting RequirementRead the Press Release
A Texas electronics business was ordered today to forfeit more than $1.3 million for failing to report that amount in cash transactions to the IRS, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
D-Tronics, a McAllen, Texas, electronics business, was sentenced today by U.S. District Judge Micaela Alvarez of the Southern District of Texas for failing to file an IRS Form 8300 corresponding to a cash transaction of more than $10,000. In addition, in accordance with its plea agreement, D-Tronics will forfeit more than $1.350 million, which represents the amount of unreported currency. The forfeiture is among the highest against a trade or business for violating the Form 8300 filing requirement. A Form 8300 filing is required to be filed when anyone engaged in trade or business receives more than $10,000 in U.S. currency in one or two or more related sales transactions.
In addition, Pedro Diaz, 45, the owner of D-Tronics, was sentenced to one year of probation for failing to supply information concerning foreign bank accounts in which he had an interest. Both Diaz and D-Tronics entered guilty pleas in July 2014.
The case was investigated by the Internal Revenue Service – Criminal Investigation and prosecuted by Trial Attorney Keith Liddle in the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section.
Tax Preparer Sentenced to 33 Months in Prison for Filing A False Tax Return and Lying on Loan ApplicationRead the Press Release
CHARLOTTE, N.C. – Nkhenge Shropshire, a/k/a Konjay Shropshire, 41, of Charlotte, was sentenced to 33 months in prison today for filing false tax returns and lying on a loan application, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney ordered Shropshire to serve five years under court supervision following her prison term and to pay $582,933 as restitution to IRS and $14,309.17 and $25,000 respectively to two credit unions she defrauded.
U.S. Attorney Tompkins is joined by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Shropshire was the owner of “Tax Connections” a Charlotte tax return preparation business. Court records indicate that from 2009 to 2011, Shropshire aided and assisted in the preparation of more than 600 tax returns for clients which were e-filed with the IRS. According to court records, many of the tax returns prepared by Shropshire falsely included Schedule C losses and refundable education credits, which decreased the clients’ tax liabilities, resulting in larger tax refunds and false Earned Income Tax Credits. The tax loss associated with the false education credits is more than $580,000. Court records show that Shropshire directed that many of the fraudulent tax refunds be deposited into a business bank account she controlled, and kept a portion of the refund as payment for her services. On some occasions, according to court records, Shropshire did not provide her clients with copies of their completed tax returns or gave them incomplete copies, so clients would not know their returns contained false information.
According to filed court documents, in October 2011 Shropshire applied for membership with a federal credit union using a different social security number and home address. On the same day, court records show, Shropshire also filled out an application for a car loan with the same credit union for the purchase of a 2008 Mercedes CLS 550 vehicle. On that car loan application, Shropshire listed a false employer, false annual salary and false job title. Court records also show that Shropshire was approved for a $40,075 car loan but only made two payments totaling $2,508.50. Shropshire pleaded guilty to conspiracy to defraud the IRS and to making false statements on a loan application in October 2013.
In handing down Shropshire’s sentence today, Judge Whitney noted that we have a “system based on truth” and “self-reporting,” and that we rely on individuals filing taxes to be honest and even more on return preparers. Judge Whitney also stated that the victims in this case are honest tax payers and that this crime victimizes every single honest taxpayer.
Shropshire will be ordered to self-report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by IRS-CI. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the case.
St. Petersburg Man Sentenced to over 15 Years in Federal Prison for Unlawfully Possessing Firearms and AmmunitionRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Cordey Jermel Adams (34, St. Petersburg) to 15 years and eight months in federal prison for being a felon in possession of firearms and ammunition. Adams pleaded guilty on November 25, 2013.
According to court documents, on December 12, 2012, law enforcement officers executed a search warrant at Adams’s residence in St. Petersburg. During the search, they found approximately five to six pounds of marijuana, digital scales, a video surveillance system, and a total of $3,709.00 in cash. Also inside the residence, officers discovered three loaded firearms. At the time of the incident, Adams was a previously convicted felon, including multiple drug distribution offenses, and was therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
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 also a part of ATF’s Frontline Strategy to prevent violent crime in communities.
Second Kirtland Woman Pleads Guilty to Second Degree Murder ChargeRead the Press Release
ALBUQUERQUE – Mariah Benally, 22, of Kirtland, N.M., pleaded guilty this morning to a second degree murder charge. One of her co-defendants, LaSheena Jacquez, 27, also of Kirtland, N.M., entered a similar guilty plea earlier this month.
Mariah Benally and Jacquez are two of five individuals, all of whom are enrolled members of the Navajo Nation, who were indicted in Jan. 2014, on criminal charges arising from the kidnapping and brutal murder of a 28-year-old Navajo woman on Oct. 23, 2013. The five defendants previously had been arrested in Dec. 2013, on a criminal complaint that was filed after law enforcement authorities received information that the victim, who had been reported as missing in Nov. 2013, had been murdered. The victim’s remains were recovered on Dec. 9, 2013.
In addition to charging Mariah Benally and Jacquez, the four-count indictment also charged Patrick Benally, 26, of Kirtland, and Justin Benally, 26, and Scott Thompson, 28, both of Farmington, N.M., with first degree murder, kidnapping, and conspiracy to kidnap. It also charged Mariah Benally, Jacquez, Justin Benally and Thompson with harboring Patrick Benally to prevent his arrest on a warrant for an unrelated crime. The indictment alleges that the crimes charged occurred on the Navajo Indian Reservation within San Juan County, N.M.
This morning, Mariah Benally pled guilty to a felony information charging her with second degree murder. In entering her guilty plea, Mariah Benally admitted causing the victim’s death by throwing rocks at her, and aiding and abetting others who also caused the victim’s death. Benally admitted throwing rocks at the victim after the victim had been repeatedly stabbed by three of her co-defendants and thrown off a cliff by one of the co-defendants. Mariah Benally also admitted aiding her co-defendants in restraining the victim and transporting her to the murder site, and destroying evidence of their crimes.
On Oct. 16, 2014, Jacquez pled guilty to a second degree murder charge, and admitted causing the victim’s death on Oct. 23, 2013, by repeatedly stabbing the victim with a knife, throwing rocks at the victim, and aiding and abetting others who also caused the victim’s death. Jacquez also admitted that she destroyed evidence and aided and abetted others in the destruction of evidence in an effort to evade prosecution.
Mariah Benally and Jacquez have been in federal custody since they were arrested and remain detained pending their sentencing hearings, which have yet to be scheduled. Each faces a maximum statutory penalty of life imprisonment.
The women’s three co-defendants have entered not guilty pleas to the indictment and are detained pending trial, which has not yet been scheduled. If convicted of the charges in the indictment, each faces a maximum statutory penalty of life imprisonment. Charges in indictments are merely accusations and defendants are presumed innocent unless convicted in a court of law.
This case was investigated by the Farmington office of the FBI, the Farmington Police Department and the San Juan County Sheriff’s Office. Assistant U.S. Attorneys Niki Tapia-Brito and David Adams are prosecuting the case.Schenectady Man Pleads Guilty to Firearms ChargeRead the Press Release
ALBANY, NEW YORK – JAMES A. WAGONER, 40, of Schenectady, New York, pled guilty to making a false statement in the acquisition of a firearm before United States District Court Judge Mae A. D’Agostino, on October 14, 2014, announced United States Attorney Richard S. Hartunian and James S. Higgins, Acting Special Agent-in-Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, and Firearms. Wagoner faces up to ten years in prison, a fine of up to $250,000, and supervised release of up to three years. Sentencing is scheduled for February 12, 2015 in Albany, New York.
As part of his guilty plea, WAGONER admitted that in October 2009 he made a false statement to a federally licensed firearm dealer when he purchased a rifle in Albany, New York. Specifically, on an ATF 4473 Firearms Transaction Record, in response to a question about whether he was subject to a court order prohibiting him from harassing, stalking, or threatening his child or an intimate partner or the child of an intimate partner, he answered, no. At the time, he was subject to such an order. Federal firearms laws prohibit people subject to such orders from possessing firearms.
The case was investigated by the United States Bureau of Alcohol, Tobacco, and Firearms (ATF), Albany, NY. The case was prosecuted by Assistant United States Attorney Edward P. Grogan.
Rochester Man Sentenced for Passport FraudRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Leroy Malcolm, 45, of Rochester, NY, who was convicted of passport application fraud, was sentenced to two years of probation by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that in July 2004, Malcolm, a Jamaican national, submitted a United States passport application to the Rochester City Clerk’s Office. The defendant used his own picture but the name, date of birth, and place of birth of another individual.
The sentencing is the culmination of an investigation on the part of the United States Department of State, Diplomatic Security Service, under the direction of William Ferrari.Rochester Man Sentenced for His Role in Oxycontin ConspiracyRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that James Marsh, 73, of Rochester, NY, who was convicted following a jury trial of conspiring to distribute OxyContin, was sentenced by U.S. District Judge David G. Larimer to five years in prison and ordered to pay restitution of $34,033.61 to the Medicaid program.
Assistant U.S. Attorneys Charles Moynihan and John Field, who handled the case, stated that Marsh conspired with co-defendants Shantel Williams, Jimmie Lee Simmons, Anestacia Wilson, Betina Wilson, and Stacy Clark, to obtain OxyContin through fraudulent prescriptions. Marsh paid Shantel Williams approximately $800 for each fraudulent prescription that was written using the names and Medicaid information of fake patients Anestacia Wilson, Bettina Wilson, Stacy Clark, and others. The defendant escorted the fake patients to various local pharmacies, where they would have the fraudulent prescriptions filled. Marsh would then distribute the OxyContin to his customers.
All defendants in the case have been convicted.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration under the direction of James J. Hunt, Acting Special Agent in Charge of the New York Division, and the Office of the New York State Attorney General, Medicaid Fraud Control Unit, under the direction of Acting Director Amy Held.Ring of Union Members Charged with Conspiring to Steal from Health FundRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. today that eight present and former members of Plumbers & Steamfitters Local 267 have been charged by criminal complaint with conspiring to steal funds belonging to their union-sponsored health care plan. The charges carry a maximum sentence of five years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that according to the complaint, Paul Harnas, Jr., Brandon Wilson, Cory Bennett, Eric Field, Jamie Davenport, Jared Stevens, Chris Beach and Gregory Haller, all of the Southern Tier area of NY, schemed to defraud their union health care plan by submitting fraudulent claims for reimbursement of purported dental work. The fraudulent claims were supported by fictitious receipts that Paul Harnas, Jr. prepared and sold to the other defendants for approximately $100 per receipt. From June 2011 to April 2013, the defendants submitted at least 28 fraudulent claims to obtain more than $65,000 from the health care plan.
The criminal complaint is the culmination of an investigation by Special Agents the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the Direction of Special Agent-in-Charge Cheryl Garcia of the New York Regional Office, and the New York State Department of Financial Services, Frauds Bureau, under the direction of Superintendent Benjamin Lawsky.
Paul Harnas, Jr. made an initial appearance on October 28, 2014 before U.S. Magistrate Judge Payson and was released. Harnas and the remaining defendants will be in court on November 4, 2014 at 9:00 a.m. before Judge Payson.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Prisoners Plead Guilty to Assault ChargeRead the Press Release
ALEXANDRIA, La. –United States Attorney Stephanie A. Finley announced today that two prisoners at the U.S. Penitentiary in Pollock, La., pleaded guilty to beating a fellow inmate resulting in traumatic brain injury.
Jeffrey Lovell, 32, and Christopher Simpson, 36, pleaded guilty before U.S. District Judge Dee D. Drell to one count of assault resulting in serious bodily injury. According to evidence presented at the guilty plea, video cameras captured Lovell and Simpson assaulting a third inmate outside of his cell on June 11, 2013 at the U.S. Penitentiary in Pollock. The inmate was struck around his head and torso repeatedly. The prisoner was later brought to a hospital where he was treated for traumatic brain injury, which required a feeding tube.
The defendants face up to 10 years in prison, three years of supervised release, and a $250,000 fine. A sentencing date of February 13, 2015 was set.
The FBI and the U.S. Bureau of Prisons conducted the investigation. Assistant U.S. Attorney Seth D. Reeg prosecuted the case.