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28 October 2014
Omaha Woman Sentenced to 5 years in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
United States Attorney Deborah R. Gilg announced that Trina Matthews, 42, of Omaha, Nebraska, was sentenced on October 27, 2014, to 5 years in prison by United States District Judge Laurie Smith Camp. Matthews had previously pled guilty for her involvement in a conspiracy to distribute methamphetamine in the Omaha area dating back to January 1, 2014. Matthews had delivered and arranged for the delivery of more than 5 grams of actual methamphetamine, which caused her to be sentenced to a mandatory minimum sentence of 5 years. After serving her sentence Matthews will be required to serve a Term of Supervised Release of 4 years.
This case was the result of an investigation by the Sarpy County Sheriff’s Office and the Omaha Police Department.
Ohio Man Convicted of Selling Heroin Near Local PlaygroundRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – Jewan Kyle, 28, of Cleveland, Ohio, was convicted of distributing heroin near Bloch Playground on Wheeling Island, United States Attorney William J. Ihlenfeld, II, announced today.
Kyle, who has multiple prior felony drug convictions, pled guilty today to one count of “Distribution of Heroin Within 1000’ of a Protected Location” after an investigation by the Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative. The Task Force is comprised of the West Virginia State Police, the Ohio County Sheriff’s Department, the Wheeling Police Department, and the United States Drug Enforcement Administration.
Kyle, who will remain in custody pending sentencing, faces between one and forty years in prison and fine of up to $2,000,000.00. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
United States Attorney William Ihlenfeld, II prosecuted the case on behalf of the government.
Senior U.S. District Judge Frederick P. Stamp presided.
November 2014 ElectionsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that Assistant United States Attorney (AUSA) Suntrease Williams-Maynard will lead the efforts of his Office in connection with the Justice’s Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Williams-Maynard has been appointed to serve as the District Election Officer (DEO) for the Southern District of Alabama, and in that capacity is responsible for overseeing the District’s handling of complaints in election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Kenyen R. Brown 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 Kenyen R. Brown stated that AUSA/DEO Williams-Maynard will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (251) 441-5845.
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 (251) 438-3674.
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 Kenyen R. Brown 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.”
North Carolina Businessman Sentenced to Prison for Failing to Report More Than $1 Million in IncomeRead the Press Release
A Wilmington, North Carolina, man was sentenced yesterday to serve 12 months and one day in prison for tax evasion by Chief U.S. District Judge James C. Dever III in Raleigh, North Carolina, the Justice Department and Internal Revenue Service (IRS) announced today.
Jeffrey Wayne Scott, 48, pleaded guilty on May 14 to one count of willfully attempting to evade his personal income tax for tax year 2007.
According to court documents and court proceedings, Scott has owned and operated Greenville Loop Seafood (GLS), a seafood distribution company located in Wilmington, since 1995. For tax years 2006 through 2010, Scott and his wife filed joint individual income tax returns. Scott, under penalty of perjury, reported that his taxable income for these five years ranged between $23,934 and $92,999, and paid only $91,800 in federal income taxes for this time period. However, during these five years, the Scotts spent far in excess of this reported taxable income on personal expenditures.
According to court documents and court proceedings, between 2006 and 2010, the Scotts paid for nearly all of their living expenses with checks from GLS. This included, among other things, utilities, insurance premiums, landscaping, home improvements, school fees and a country club membership. They also purchased five vehicles totaling more than $200,000, a $100,000 boat and a $2.1 million waterfront home. Scott also made a monthly transfer of $10,000 from the GLS business account into a personal brokerage account. After the purchase of their home in June 2009, Scott stopped transferring funds to the brokerage account, but instead used funds from the GLS business account to pay the mortgage and related expenses. The IRS calculated that Scott failed to report in excess of $1,270,000 in taxable income for these five years and owed at least $412,844 in additional federal income taxes.
According to court documents and court proceedings, when first contacted by IRS-Criminal Investigation agents in June 2011, Scott falsely stated that he was letting friends stay in his second home rent free. Furthermore, despite being aware that he was under criminal investigation, in November 2012, Scott filed a false 2011 GLS corporate income tax return claiming work on his personal residence, including painting and repair work by a plumber , and health bills related to his family dog as business expenses.
This case was investigated by special agents of IRS-Criminal Investigation. Assistant U.S. Attorney Susan B. Menzer for the Eastern District of North Carolina and Trial Attorney Todd A. Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New York Man Sentenced to More Than 5 Years in Federal Prison for Trafficking OxycodoneRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that HARLAND FIELDS, 28, of the Bronx, N.Y., was sentenced yesterday by Chief U.S. District Judge Janet C. Hall in New Haven to 66 months of imprisonment, followed by five years of supervised release, for trafficking oxycodone.
According to court documents and statements made in court, in 2012, the Drug Enforcement Administration’s New Haven Task Force began investigating an oxycodone trafficking operation headed by Nicholas Dyber of West Hartford. The investigation, which included the use of court-authorized wiretaps, controlled purchases of oxycodone, physical surveillance and the use of an undercover officer, revealed that Dyber was being supplied with bulk quantities of oxycodone by FIELDS and also Eduardo Garcia of Modesto, California. At times, Dyber paid Brian Vanderpool, of West Hartford, to travel to New York to pick up oxycodone from FIELDS and transport the pills to Dyber in Connecticut. Dyber distributed the pills he received from FIELDS and Garcia to customers and other Hartford-area distributors.
FIELDS has been detained since his arrest on October 11, 2013. On May 27, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 5,000 oxycodone pills.
Dyber, Garcia and Vanderpool have also pleaded guilty. On August 21, 2014, Garcia was sentenced to 60 months of imprisonment. Dyber and Vanderpool await sentencing.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the DEA and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia and Meriden Police Departments. This case is being prosecuted by Assistant U.S. Attorney Patrick Caruso.
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(203) 821-3722 [email protected]New London Man Sentenced to 3 Years in Prison for Selling Heroin, Violating Supervised ReleaseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut,announced that DANIEL SCOTT, 26, of New London, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 36 months of imprisonment for distributing heroin and for violating his supervised release from a previous federal conviction.
According to court documents and statements made in court, on April 19, 2010, Judge Arterton sentenced SCOTT to 60 months of imprisonment, followed by four years of supervised release, for selling crack cocaine. He was released from prison in March 2013 and began serving his term of supervised release.
Approximately seven months after his release from prison, the New London Police Department received information that SCOTT was selling marijuana and heroin from his apartment on Shaw Street in New London. In November 2013, SCOTT sold marijuana to an individual working with law enforcement and, on December 30, 2013, SCOTT sold heroin to the same individual.
On January 15, 2014, a court-authorized search of SCOTT’s apartment revealed a quantity of heroin, drug packaging material, a cell phone and approximately $661 in cash. Also, a search of SCOTT’s rental vehicle revealed 2.6 grams of heroin packaged for distribution and two additional cell phones. SCOTT was arrested on that date.
SCOTT has been detained since his arrest. On June 23, 2014, he waived his right to indictment and pleaded guilty to one count of possession with intent to distribute heroin.
This is SCOTT’s fourth felony drug conviction.
Judge Arterton sentenced SCOTT to 21 months of imprisonment for distributing heroin and 24 months of imprisonment, nine months concurrent, for violating the terms and conditions of his supervised release, for an effective sentence of 36 months of imprisonment. SCOTT was ordered to serve three years of supervised release following his release from prison.
This matter was investigated by the New London Police Department and was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
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(203) 821-3722 [email protected]New Haven Man Charged with Federal Firearm OffenseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging KAVON ROGERS, 27, of New Haven, with possession of a firearm by a convicted felon.
As alleged in the indictment and previously-filed court documents, on September 27, 2014, ROGERS was arrested by officers with the New Haven Police after he was found in possession of a stolen Smith and Wesson .380 caliber semiautomatic handgun. Prior to that date, ROGERS had sustained felony convictions.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
If convicted of the charge, ROGERS faces a maximum term of imprisonment of 10 years and a fine of up to $250,000.
ROGERS has been detained since his arrest.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Jennifer Laraia and Anthony Kaplan.
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(203) 821-3722 [email protected]Murphysboro Resident Charged with Crack Cocaine and Firearm OffensesRead the Press Release
Follow @SDILNewsOn October 7, 2014, Martell L. Brown-Wright, a/k/a “Low Key,” 28, of Murphysboro, was charged by indictment with distribution of crack cocaine within 1,000 feet of a public housing facility, possession of crack cocaine with intent to distribute within 1,000 feet of a public housing facility, and possession of a firearm in furtherance of a drug trafficking offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The indictment asserts that the offenses occurred on September 4-5, 2014, at the New Horizons Housing Complex, in Murphysboro, Jackson County.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The crack cocaine offenses carry a penalty of up to 40 years in federal prison, to be followed by 6 years’ supervised release, and a fine of $2,000,000. The firearm offense carries a penalty of 5 years to life in federal prison, followed by 5 years’ supervised release, and a fine of $250,000. Federal law requires that any term of imprisonment imposed on the firearm offense must be served consecutive to any term imposed on the drug offenses.
Brown-Wright made his initial appearance in federal court in Benton on October 28, 2014. He is currently being held without bond, pending an October 31, 2014, bond hearing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department. The Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Minnesota Financial Crimes Task Force Investigation Results in Charges Against 28 for Identity Theft, Check Counterfeiting, and Bank Fraud ConspiracyRead the Press Release
United States Attorney Andrew M. Luger today announced the indictment of 25 members of a bank fraud conspiracy in which conspirators stole or attempted to steal more than $2 million by manufacturing counterfeit checks and cashing them, along with other fraudulent checks, at dozens of banks and check cashing facilities.1 Three additional defendants have been charged by information for related crimes. Federal, state, and local law enforcement officers today, under the auspices of the Minnesota Financial Crimes Task Force (MNFCTF), executed arrest warrants in Minnesota, Oregon, and North Dakota. Defendants are making initial appearances today in U.S. District Court in St. Paul before Magistrate Judge Jeffrey J. Keyes.
“The indictment of the Sienemah Gaye Organization effectively shuts down a pervasive identity theft and bank fraud conspiracy in the Twin Cities,” said U.S. Attorney Luger. “This case is representative of a recurring trend – the migration of traditional street criminals to white collar fraud. Law enforcement officials and prosecutors, working in close collaboration through the Minnesota Financial Crimes Task Force, were able to put together the pieces of hundreds of attempted instances of alleged fraud to build today’s conspiracy indictment. I am grateful to my partners in law enforcement for their superb investigative work continuing to stay ahead of those who seek to commit fraud.”
Bureau of Criminal Apprehension Assistant Superintendent Drew Evans, said: “These criminals targeted Minnesotans, local businesses and financial institutions. The Minnesota Financial Crimes Task Force together with its local and federal partners worked across jurisdictions to bring the conspiracy to light, identify the players and bring them to justice. When criminals aren't bound to one jurisdiction, this kind of criminal justice partnership puts us in the best position to stop them.”
Special Agent in Charge of the United States Secret Service in Minneapolis Louis Stephens, said: “Today's law enforcement operation involved over 75 federal, state and local law enforcement officers and is the culmination of thousands of investigative man hours involving the efforts of 12 different law enforcement agencies working collaboratively with private industry and federal prosecutors under the auspices of the Minnesota Financial Crimes Task Force. Today, thanks to talented investigators, analysts and prosecutors, a significant identity theft ring adept at victimizing Minnesota businesses and citizens is no longer in business.”
Acting Special Agent in Charge of the Internal Revenue Service – Criminal Investigation, Karl Stiften, said: "The individuals indicted today thought they could use trickery and deception for financial gain. What they didn't count on was the financial expertise of IRS Criminal Investigation special agents. IRS Criminal Investigation is proud to be a part of the powerful law enforcement team that stopped this alleged criminal activity."
According to the indictment and documents filed in court, from at least November 14, 2007, until September 11, 2013, the conspiracy, using fraudulently obtained and otherwise compromised account information, manufactured counterfeit checks with blank check stock and check-printing software, which they distributed to other members of a bank fraud conspiracy to cash at dozens of different banks and other financial institutions. The check manufacturers, including SIENEMAH TERRANCE GAYE, FINOH SAHR FILLIE, and KARZIL RENALDO CANNEDY, worked with “recruiters,” who were responsible for distributing the fraudulent checks they obtained from GAYE and FILLIE. The recruiters directed “check runners” to cash fraudulent checks at banks or check cashing establishments. In some instances, the check runners opened bank accounts in their own names in which they would deposit fraudulent checks and later withdraw for cash. Other members of the conspiracy, including GAYE, FILLIE, JEFFREY GBOR, JR., JAMES CAPEHART, III, ANTHONY KUGMEH, and BAI KIAWOIN, used stolen personally identifiable information and fraudulent checks to open new bank accounts. After opening these new accounts, the conspirators were issued blank personal checks that they used to engage in fraudulent transactions. Each member of the conspiracy took a portion of the proceeds of the fraud.
According to the indictment and documents filed in court, three primary counterfeit check manufacturers, twelve recruiters, and seven runners are charged at this time. GAYE, FILLIE, and CANNEDY used various means of obtaining account information to make counterfeit checks, including getting access to sensitive account information through two bank insiders. FELISHA HASSIM was a branch manager at a TCF Bank branch and ANNESA HASSIM was a teller at a Central Bank branch. Both FELISHA and ANNESA HASSIM facilitated the conspiracy by using their access to legitimate account information to provide the manufacturers with account numbers and balance information. A third facilitator, TIMOTHY TILLMAN, who worked as a door-to-door meat salesman, provided to the conspiracy copies of the legitimate checks he received from customers as payment, which were then used to manufacture fraudulent checks.
According to documents filed in court, in December 2012, a recruiter named JEFFREY GBOR, JR., approached FELISHA HASSIM and asked her to provide him with bank account and checking information, to which she had access through her position with the bank. HASSIM provided copies of cashed or deposited checks to GBOR on multiple occasions, and she facilitated fraudulent transactions by assisting check runners with the deposit of counterfeit checks and the immediate withdrawal of cash based on the deposit of those counterfeit checks. GBOR also communicated with HASSIM via text message to determine if specific accounts had sufficient funds for the conspiracy to engage in fraudulent transactions.
According to the indictment and documents filed in court, the defendants also obtained account numbers and bank routing information through research on the social media website Instagram. Members of the conspiracy accessed compromised account information posted by unrelated persons using the #myfirstpaycheck hashtag, among others. The conspiracy also obtained account information of legitimate business and personal accounts by stealing checks.
The Minnesota Financial Crimes Task Force (MNFCTF) protects and serves the public by investigating financial crimes related to identity theft, with a special emphasis on organized criminal enterprises. The MNFCTF is comprised of multi-jurisdictional law enforcement agencies working together to provide investigative expertise and resources. The MNFCTF includes representatives from the Minnesota Bureau of Criminal Apprehension, United States Secret Service, Edina Police Department, Internal Revenue Service - Criminal Investigations, Immigration and Customs Enforcement – Homeland Security Investigations, Ramsey County Sheriff’s Office, United States Postal Inspection Service, and the United States Attorney’s Office for the District of Minnesota.
This case is the result of an investigation conducted jointly under the auspices of the MNFCTF by the Minnesota Bureau of Criminal Apprehension, United States Secret Service, Edina Police Department, Internal Revenue Service - Criminal Investigations, United States Postal Inspection Service, Ramsey County Sherriff’s Office, St. Paul Police Department, Immigration and Customs Enforcement – Homeland Security Investigations, United States Marshal Service, Plymouth Police Department, and United States Diplomatic Security Service.
U.S. Attorney Luger thanked TCF Bank and Central Bank for their assistance in the investigation.
This case is being prosecuted by Assistant U.S. Attorney Lola Velazquez-Aguilu.
Defendant Information: SIENEMAH TERRANCE GAYE, 30
Anoka, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 20 counts
• Aggravated Identity Theft, 2 counts
FINOH SAHR FILLIE, 28
Brooklyn Park, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 5 counts
• Aggravated Identity Theft, 1 count
KARZIL RENALDO CANNEDY, 23
Sherburne County Jail
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 5 counts
JAMES LUELLYING CAPEHART, III, 31
Brooklyn Center, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 2 counts
• Aggravated Identity Theft, 1 count
JEFFREY DULWONH GBOR, 26
Minnesota Correctional Facility – St. Cloud
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 11 counts
• Aggravated Identity Theft, 1 count
LARRY WLEAH BORTEH, 29
Brooklyn Park, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
ANTHONY TARPEH KUGMEH, 32
Coon Rapids, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
• Aggravated Identity Theft, 1 count
SAMUEL GAYAH KARMO, 33
Brooklyn Park, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
SAMBA ERIC KONDEH KAMARA, 25
St. Paul, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 2 counts
FULTON KPENEON BADIO, 27
Fargo, N.D.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
KHAN Z GBOR, 23
Columbia Heights, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
———————————————
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 2 counts
PRINCE KORBOI SUMOSO, 29
Fargo, N.D.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
BAI ALBERT KIAWOIN, 23
Brooklyn Park, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 2 counts
• Aggravated Identity Theft, 1 count
VICTOR JERRY MASSALY, 30
St. Paul, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 3 counts
FELISHA HASSIM, 20
Blaine, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 4 counts
ANNESA HASSIM, 23
Blaine, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 2 counts
TIMOTHY JASON TILLMAN, 30
Gervais, Ore.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
MALCOLM LOUIS CORNELL, 24
Minneapolis, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
KLEME DOGBO SAMOLU, 24
Waterloo, Iowa
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
AYESHA VERNEDER MCKINNEY, 26
Atlanta, Ga.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
JOHNSON SAYONKON, 31
Richfield, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
MAURICE LERON GRIFFIN, 25
Minneapolis, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
KAELA MONAE LEWIS, 22
St. Paul, Minn.
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count
OWEN MENSOHN GBORPLAY, 25
Minnesota Correctional Facility – St. Cloud
Charges: • Conspiracy to Commit Bank Fraud, 1 count
• Bank Fraud, 1 count###
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Members of Detroit Carjacking Ring SentencedRead the Press Release
Two Detroit men and a Redford Township man were sentenced yesterday after being convicted at trial in a case involving armed carjacking to support a chop shop, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Chief James Craig, Detroit Police Department, Colonel Kriste Kibbey Etue, Director, Michigan State Police and William Hayes, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
United States District Judge George Caram Steeh sentenced Frank Harper, 30, of Detroit, to 63 years in federal prison, Phillip Harper, 25, of Detroit to 92 years in federal prison and Bernard Edmond, 46, of Redford Township to 75 years in federal prison.
The evidence presented during the three week trial established that the defendants conspired with several others to steal high-end vehicles, many by committing armed carjacking, and then to retag the vehicles for sale. Edmond would purchase the stolen vehicles from the Harper brothers and others after the thefts. He would then alter the vehicle identification number of the stolen vehicles to conceal the fact that the vehicles had been stolen. Edmond would also create false documents to file with the Secretary of State, then sell the vehicles to unwitting buyers in Michigan and other states. Edmond created a market for the stolen vehicles by informing the Harpers and others of his desire to buy these stolen vehicles.
The Harper brothers committed several carjackings and other auto thefts. For example, on October 14, 2010, Phillip Harper and others brandished firearms to steal a Cadillac Escalade, a GMC Yukon, a Chyrsler Aspen, and a Mercury Milan from the Elysium Night Club in downtown Detroit. On January 25, 2011, Frank Harper and others carjacked a Mercedes S550 from a person at the intersection of Atwater and Joseph Campau streets in Detroit. On January 31, 2011, the Harper brothers and another used a firearm to carjack three vehicles from a person on Joseph Campau Street in Detroit. On February 22, 2011, the Harper brothers and others carjacked three high-end vehicles from the valet at Opus One restaurant in Detroit. On March 20, 2011, Philip Harper and others carjacked a Lexus 460 near Club Vain in Detroit. Many of these and other vehicles were intended for Bernard Edmund to retag and sell.
Co-defendants Justin Bowman was sentenced to 168 months, Stratford Newton received a sentence of 144 months and Darrell Young received a sentence of 60 months for their roles in the conspiracy.
U.S. Attorney McQuade said, "This case is an example of the kinds of cases we are bringing under our federal campaign to crack down on carjacking. Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community. Although these convictions bring with them severe sentences, we think they are appropriate for such serious and pervasive crimes. We hope that these convictions will deter others from committing similar crimes that wreak havoc in our neighborhoods."“This case serves as an example of the collaboration between federal, state and local law enforcement to bring justice to bear upon perpetrators who, for years, victimized our neighborhoods with violence,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, along with Homeland Security Investigations, the Michigan State Police, the Detroit Police Department, and the United States Attorney’s Office, remains dedicated to rooting out those who would prey on our society.”
The case was investigated by Special Agents of the FBI, officers of the Detroit Police Department, Michigan State Police and Homeland Security Investigations
Chief Craig stated, “Thank you to all involved who dismantled this Detroit carjacking ring. This is another opportunity for the Detroit Police Department to work with our partners to help reduce carjacking crimes, which is one of the department’s top priorities.”McLaughlin Man Indicted on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Reginald Brooks, age 44, was indicted on October 15, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on October 23, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about October 12, 2014, Brooks assaulted his intimate partner with a dangerous weapon, which resulted in substantial bodily injury.
The charges are merely accusations and Brooks is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Brooks was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Martinsburg Woman Convicted of Defrauding IRSRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Debra Myers, 52, of Martinsburg, West Virginia, was convicted in federal court after she admitted to her role in a tax fraud conspiracy, United States Attorney William J. Ihlenfeld, II, announced today.
Myers pled guilty today to a one-count Information alleging that she conspired to defraud the Internal Revenue Service. An investigation led by the IRS and the West Virginia State Police revealed that she signed five fraudulent tax returns at the direction of her boyfriend, a tax preparer, and allowed more than $30,000.00 in improper refunds to be deposited into her bank accounts.
Myers faces up to 10 years in prison and a fine of up to $250,000.00. As part of the plea agreement, she also agreed to pay $38,843.00 in restitution. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Paul Camilletti is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Manhattan U.S. Attorney Settles Civil Fraud Claims Against Columbia University and Affiliated Public Health Program for Submitting False Claims in Connection with Aids and Hiv Treatment-Related GrantsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Thomas O’Donnell, Special Agent in Charge of the New York Region of the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services (HHS), announced today that the United States filed a civil fraud lawsuit in Manhattan federal court against THE TRUSTEES OF COLUMBIA UNIVERSITY IN THE CITY OF NEW YORK (“Columbia University”), and ICAP (formerly known as INTERNATIONAL CENTER FOR AIDS CARE AND TREATMENT PROGRAMS) (collectively, “Columbia”) for submitting false claims in connection with federal grants that Columbia University obtained to fund ICAP’s AIDS- and HIV-related work. The United States’ Complaint-in-Intervention (the “Complaint”) alleges that Columbia University, as the grant administrator on behalf of ICAP, received millions of dollars in federal grants and, pursuant to the rules applicable to such grants, was required for nearly 200 of ICAP’s employees located in New York City to use a suitable means of verifying that the employees had actually performed the work charged to a particular grant. The Complaint alleges that Columbia was well aware that this was not being done, yet continued wrongly to charge many federal grants for work that was not devoted to the projects they funded. The lawsuit seeks damages and penalties under the False Claims Act.
Simultaneous with the filing of the lawsuit, the United States settled the claims against Columbia pursuant to a settlement stipulation approved today by U.S. District Judge Lorna G. Schofield. In the settlement and as detailed below, Columbia admitted failing to use a suitable means of verifying whether the salary and wage charges that ICAP applied to specific federal grants were based on an employee’s actual effort for that grant. Columbia also admitted that as a result, certain effort reports contained inaccurate information, and for a number of years ICAP mischarged certain federal grants for work that was not allocable to those agreements. Columbia also agreed to pay $9,020,073 to resolve the Government’s claims.
Manhattan U.S. Attorney Preet Bharara said: “Columbia University and ICAP applied to the federal government and received many millions of dollars to fund AIDS and HIV projects around the world. We admire and applaud Columbia’s work in combatting AIDS and HIV. But grantees cannot disregard the terms under which grant money is provided. Grantees are required to use federal money for the purpose for which the grant was given and nothing else. The applicable rules are clear, and they are at the core of ensuring that tax dollars are appropriately spent. Educational institutions, like everyone else, should be held accountable when they fail to follow those rules.”
OIG HHS Special Agent in Charge Thomas O’Donnell said: “Violating rules designed to protect HIV-AIDS grant programs leads to wasteful spending, squandering vital funds that could be used to help end this worldwide epidemic. As HHS is the largest grant-making organization in the Federal government, OIG HHS is committed to protecting these grants and will work tirelessly to ensure all money is used properly.”
As set forth in the Complaint filed in Manhattan federal court:
In 2004, President Bush created the President’s Emergency Plan for AIDS Relief (“PEPFAR program”), a global HIV/AIDS program, targeting billions of dollars in new funding for prevention, treatment, and care services in the most affected countries of the world. That same year, Columbia received $125 million in PEPFAR funding through the Multi-Country Columbia Antiretroviral Program (“MCAP”) grant, and over the years obtained over 75 grants and many millions more from the federal government for HIV- and AIDs-related work performed by ICAP.
These grants are governed by certain rules that require, among other things, that grantees track the work performed by the recipient’s employees and, with limited exceptions, charge grants only for work actually performed as a part of that grant. Columbia claimed to accomplish this by producing effort reports for ICAP’s New York City-based employees purportedly detailing the employees’ distribution of work across federal, state, and private grants, as well as Columbia-sponsored projects. These reports were used to determine how much a given grant was charged for work performed by individual employees.
For nearly 200 individuals, however, these reports were not created or verified by the individuals to whom they applied. Instead, Columbia’s Finance Department provided information for these reports even though the employees of that department had limited or no knowledge of which grants the individuals actually worked on. In addition, the effort reports were certified as correct by the principal investigators on the grants without using suitable means to verify the accuracy of the reports. Instead of taking the appropriate steps to determine whether the reports were accurate, the principal investigators would certify large batches of the reports, without making any inquiry into whether the allocation of work among the grants was accurate. Moreover, ICAP’s management was well aware of the inaccuracies of the effort reporting system.
This resulted in Columbia charging grants for work that was not performed on the project being funded by that grant. For instance, an ICAP Finance Analyst stated that he spent approximately 15-20% of his time on MCAP in fiscal year 2010, but his effort report falsely listed his MCAP effort, and related salary charges, as 85%. Likewise, in fiscal year 2010, an ICAP Subcontracts Manager’s effort report listed her effort as 100% MCAP, but the Subcontracts Manager actually worked on three other grants, in addition to MCAP, that year. The time submitted for many other employees was similarly mischarged.
ICAP also charged federal grants for time spent on activities that are not chargeable to any federal grants, such as competitive grant proposal writing. For example, an ICAP Grants Manager spent a significant amount of her time writing competitive grant proposals, but her effort report showed that all of her time was charged to grants, with as much as 92% of her time charged to MCAP in some years.
Mr. Bharara thanked the Office of Inspector General for HHS for its investigative efforts and extensive assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Rebecca C. Martin is in charge of the case.
US ex rel. v. Columbia U. and ICAP complaint-in-intervention
US ex rel. v. Columbia U. and ICAP stipulation and order
Man Sentenced in Alabama for His Role in Identity Theft SchemeRead the Press Release
A man was sentenced to serve 70 months in prison for his involvement in a stolen identity tax refund fraud (SIRF) scheme that used prisoner names and a corrupt U.S. Postal Service employee, Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
Gregory Slaton was also ordered to pay $82,971 in restitution and to three years of supervised release following his prison sentence.
According to the court documents and court proceedings, Gregory Slaton conspired with his wife, Jacqueline Slaton, his brother-in-law, Harvey James, and a U.S. Postal Service employee, Vernon Harrison, to file false tax returns using stolen identities. James and Jacqueline Slaton obtained stolen identities, including identities of inmates, and used those identities to file the false tax returns. Gregory Slaton recruited Harrison into the conspiracy, who then provided Gregory Slaton with mailing addresses on his postal route to which they could mail the fraudulently claimed prepaid debit cards. James and Jacqueline Slaton then directed the tax refunds to be issued on debit cards and checks and to be sent to the specified addresses on Harrison’s mail route.
Harrison was previously sentenced to serve 111 months in prison, James was sentenced to serve 110 months in prison and Jacqueline Slaton was sentenced to serve 70 months in prison.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Jason Poole and Michael Boteler of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Man Pleads Guilty in Alabama for Involvement in Identity Theft SchemeRead the Press Release
A man pleaded guilty yesterday to one count of conspiracy to file false claims and one count of aggravated identity theft for his involvement in a stolen identity tax refund fraud (SIRF) scheme, Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.
According to the court documents, between January 2011 and December 2013, Robert Walker and his co-conspirators filed false tax returns using stolen identities. One co-conspirator obtained stolen identities from various sources, including the identities of employees from a Columbus, Georgia, company. In order to file the false tax returns, Walker and his co-conspirators obtained several Electronic Filing Identification Numbers (EFIN) in the names of sham tax businesses. The co-conspirators applied for bank products from various financial institutions, which mailed blank check stock and prepaid debit cards. The anticipated tax refunds were directed to financial institutions, which in turn issued the refunds using checks or prepaid debit cards. Walker and his co-conspirators cashed the fraudulent checks at several businesses located in Alabama. Walker also deposited fraudulent refund checks into a bank account he controlled.
Walker’s sentencing is scheduled for Feb. 5, 2015.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Postal Service’s Office of the Inspector General. Trial Attorneys Michael Boteler, Charles M. Edgar Jr. and Gregory Bailey of the Tax Division are prosecuting the case with the assistance from Assistant U.S. Attorney Todd Brown for the Middle District of Alabama.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Lower Brule Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Assault by Striking, Beating and Wounding was sentenced on October 22, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Colin Colombe, age 40, was sentenced to 2 years of probation, 90 days of jail time, and a $25 special assessment to the Federal Crime Victims Fund.
Colombe was indicted by a federal grand jury on August 21, 2013. He pled guilty on August 12, 2014.
The conviction stems from an incident in Lower Brule on June 25, 2013, when Colombe got in an altercation with an adult male. As a result of the altercation, the victim suffered injuries to his leg, as well as bruises, scrapes, and abrasions to his head and body.
This case was investigated by Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Kyle Man Sentenced for AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man convicted of Assault by Striking, Beating, or Wounding was sentenced on October 23, 2014, by U.S. Magistrate Judge Veronica L. Duffy.
Vinnie Makes Good, age 26, was sentenced to 12 months in custody, 1 year of supervised release, and ordered to pay a $25 special assessment to the Federal Crime Victims Fund and $352.50 in restitution.
The conviction stemmed from an incident that occurred in Kyle on November 17, 2013, when Makes Good, along with two other men, entered a man’s yard and assaulted him and his son with their fists, causing injuries.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Makes Good was immediately turned over to the custody of the U.S. Marshals Service.
KC Man Admits Possessing Thousands of Images of Child Porn in Guilty PleaRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to having thousands of images of child pornography on his computer.
Duane E. Elliott, 57, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to two counts of receiving child pornography over the Internet.
According to today’s plea agreement, a detective with the Independence, Mo., Police Department identified Elliott’s computer as sharing child pornography over the Internet. Elliott used a peer-to-peer file-sharing program to make approximately 20 videos of child pornography available for distribution over the Internet on multiple occasions.
Law enforcement officers executed a search warrant at Elliott’s residence and seized multiple computers and electronic storage media, which contained thousands of images of child pornography. Investigators found more than 1,000 videos and more than 2,500 images of child pornography. Some of the videos depicted sexually explicit conduct with children under the age of 12, and some depicted children in bondage or subjected to other sadistic or violent sexual abuse.
Under federal statutes, Elliott is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Katharine Fincham. It was investigated by the Independence, Mo., Police Department and the FBI Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Justice Department Protects Eastern District of Texas Election ProcessRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – U.S. Attorney John M. Bales announced today that Assistant U.S. Attorneys in the Eastern District of Texas have been appointed as District Election Officers (DEOs) for the upcoming Nov. 4, 2014 general election. The DEOs will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington, D.C.
U.S. Attorney Bales 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 elction 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 Nov. 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Bales stated that Assistant U.S. Attorneys/ District Election Officers Michelle Englade, Tom Gibson, and M. Andrew Stover will be on duty in the Eastern District of Texas while the polls are open. AUSA Englade can be reached by the public in Beaumont at 409-839-2538, AUSA Gibson can be reached in Tyler, Texas at 903-590-1400, and AUSA Stover can be reached in Plano, Texas at 972-509-1201.
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 can be reached by the public in the Eastern District of Texas at the following telephone numbers: Beaumont – 409-832-8571
Frisco – 214-705-7000
Lufkin – 936-637-3834
Sherman – 903-892-8754
Texarkana – 870-773-3382
Tyler – 903-592-4301Complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington, D.C. at 1-800-253-3931 or (202)307-2767 or by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
U.S. Attorney Bales 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.”Judge Sentences Defendants in West Philly Multi-milion Dollar Mortgage Fraud SchemeRead the Press Release
PHILADELPHIA – Defendants in a mortgage fraud conspiracy involving KREW Settlement Services were sentenced today by U.S. District Court Judge Berle M. Schiller for their roles in the multi-million dollar scheme involving more than 100 fraudulent mortgage loans. Eric Sijohn Brown, 46, of Philadelphia, was sentenced to 180 months in prison and was ordered to pay $10,849,873 in restitution to the lenders; Kevin Joseph Franklin, 51, of Albany, Georgia, was sentenced to 139 months in prison and was ordered to pay $9,454,607 in restitution to the lenders; Roderick L. Foxworth, Sr., 57, of Philadelphia, was sentenced to 84 months in prison and was ordered to pay $2,701,868 in restitution to the lenders. For false filing of tax returns, Brown was also ordered to pay restitution to the IRS in the amount of $209,777, plus interest and penalties; Franklin was ordered to pay restitution to the IRS in the amount of $51,622, plus interest and penalties; and Foxworth was ordered to pay restitution to the IRS in the amount of $140,305, plus interest and penalties. All three defendants pleaded guilty to conspiracy to commit loan fraud, wire fraud, and making false statements. Co-conspirators Walter Brown and Cynthia Brown were convicted at trial. The fraud scheme resulted in more than $20 million in fraudulent loan proceeds.
Eric Sijohn Brown - a general contractor - worked with other co-conspirators to identify distressed properties to purchase, typically in the West Philadelphia area. The scheme involved recruiting “straw buyers” whose credit history and personal information was used to purchase the properties, obtain mortgage loans, and take title to the properties, when, in reality, the properties were owned and controlled by the defendants. Mortgage loan applications were then prepared in the names of the straw buyers containing a host of false information, including false purchase prices, false employment and income information, and false statements about the straw buyers living in the properties. Mortgage brokers - including Roderick Foxworth and Walter Brown - submitted the fraudulent loan applications to lenders to secure the loans for the buyers, knowing that the information was false. Cynthia Evette Brown falsely verified that many of the straw buyers worked for her employer, Unicco Service Company, when they did not. Kevin Joseph Franklin, a title agent, falsely prepared two deeds and settlement statements (referred to as "Form HUD-1") – one for the seller that showed the actual agreed-upon purchase price and a false one for the lender that showed the grossly inflated purchase price. Franklin also created false title insurance policies for the lenders.
After the loans funded, the seller was paid the agreed-upon purchase price, and the difference between the actual purchase price and the false purchase price quoted to the lender was shared with and distributed by Franklin to Eric Brown, Foxworth, Walter Brown, and Cynthia Brown, and many of these payments were not reflected on the HUD-1 forms.
Eric Brown pleaded guilty on April 8, 2014; Franklin and Foxworth pleaded guilty on April 9, 2014.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the Department of Housing and Urban Development’s Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael S. Lowe.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Johnstown Heroin Dealer Sentenced to 90 Months in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. - A Cambrian County resident has been sentenced in federal court to 90 months in prison and three years supervised release on his conviction of distributing heroin, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Damian C. Jeffers, Sr., 44, of Johnstown, Pa.
According to information presented to the court, on Jan. 7, 2013, Jeffers distributed less than 100 grams of 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 Cambria County Drug Task Force and the Johnstown Police Department for the investigation leading to the successful prosecution of Jeffers.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls on October 28, 2014, and entering pleas of Not Guilty were:
JHANE ALAM, a 38-year-old resident of Bangladesh, appeared on charges of transporting illegal aliens, encouraging and inducing illegal entry, and bringing aliens to the United States. If convicted of the most serious charges contained in the indictment, ALAM, faces 5 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by Homeland Security Investigations. PACER Case Reference: 14-94
JASON NEEL, a 31-year-old resident of California, appeared on charges of witness tampering. If convicted of the charge contained in the indictment, NEEL, faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-100
ANTONIO MATHIAS PETERSON, a 32-year-old resident of Butte, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, PETERSON, faces 10 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Probation Office.. PACER Case Reference: 14-07
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Idaho Resident Pleads Guilty to Possession with Intent to Distribute Bath SaltRead the Press Release
BOISE - Brent R. Heinrich, 41, of Boise, Idaho, pleaded guilty today in United States District Court to possession with intent to distribute 300 grams of a mixture and substance containing the controlled substance analogue alpha-pyrrolidinopentiophenone (“a-PVP”), more commonly known as “bath salts,” which were intended for human consumption, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Heinrich ordered the a-PVP from China and had it mailed to Idaho using a false name and address. Federal investigators were alerted that this package, which was deemed suspicious, was on its way to Idaho. They had the package routed by FedEx to Boise, and they told the Boise FedEx facility that the package might contain a hazardous chemical. When FedEx received the package, they inspected the contents and found two baggies, one that held a powdery substance and one that contained a crystalline substance. A special agent from Homeland Security Investigations and a detective from Idaho State Police went to the FedEx facility to inspect and test the contents of the package. The officers determined that both of the baggies contained a controlled substance analogue called a-PVP, also known as bath salts.
When Heinrich picked up the package at the FedEx facility, he signed for it using the false name and address that was on the package. Heinrich was arrested, in possession of the bath salts, shortly after he left the FedEx facility. Further investigation by the Idaho State Police showed that Heinrich, himself a heavy user of bath salts, intended to sell the bath salts for others to consume. The controlled substance analogue, a-PVP, shares a similar chemical structure with a Schedule I controlled substance MDPV, also known as bath salts. A-PVP is considered a controlled substance analogue because it produces both hallucinogenic and stimulant effects on the central nervous system that are similar to, or greater than those caused by the controlled substance MDPV.
The charge carries a maximum punishment of up to 20 years in prison, a fine of up to $1,000,000, and a minimum term of three years of supervised release.
Sentencing is scheduled for January 14, 2015, before U.S. District Judge Edward J. Lodge in Boise.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Idaho State Police.
- Houston Man Gets Almost Nine Years for Possessing Counterfeit Credit Cards
Hollister Woman Sentenced to Prison for Embezzlement SchemeRead the Press Release
SAN JOSE – Briana Irene Roy was sentenced today to nine months in prison, and ordered to pay $197,240.95 in restitution for wire fraud stemming from an employee embezzlement scheme, announced United States Attorney Melinda Haag and U.S. Secret Service Special Agent in Charge Cristina Beloud.
Roy pleaded guilty on May 29, 2014, to one count of wire fraud. According to the plea agreement, Roy admitted that between March 2010 and February 2013, while she had been employed in the marketing division of a local engineering company based in San Jose, Calif., she devised and implemented a scheme whereby she used a company credit card issued in the name of one of the company’s executives on approximately 80 separate occasions to make charges to her personal PayPal account for her personal benefit. Roy further admitted that she attempted to conceal these activities by generating fake invoices and receipts for products and services in the name of another San Jose business. Through this fraudulent scheme, Roy admitted that she stole or attempted to steal funds to which she was not entitled in the amount of $247,387.45.
Roy, 38, of Hollister, Calif., had previously waived Indictment and was charged by a felony Information on Dec. 13, 2013. She was charged with one count of wire fraud in violation of Title 18 United States Code § 1343. Roy pleaded guilty to the single count and agreed to pay restitution for the full amount of the loss. Roy is currently released on bond. Bail was set previously at $50,000.
The sentence was handed down by the Honorable D. Lowell Jensen, Senior United States District Court Judge. Judge Jensen also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving the sentence on or before Feb. 25, 2015.
Amie Rooney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tracey Andersen. The prosecution is the result of an investigation by the U.S. Secret Service.
(Roy information )
Gregory Allen Rhea Sentenced to Serve 288 Months in Prison for Conspiring to Distribute Oxycodone and MethamphetamineRead the Press Release
GREENEVILLE, Tenn. – Gregory Allen Rhea, 38, of Morristown, Tenn., was sentenced on Oct. 27, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, to serve 288 months in federal prison for conspiring to distribute oxycodone and methamphetamine, maintaining a place for the purpose of distributing controlled substances, and possession of firearms in furtherance of drug trafficking.
Upon his release from prison, Rhea will be supervised by the U.S. Probation Office for four years. There is no parole in the federal system. Rhea was also ordered to forfeit to the United States $75,100 and also pay a money judgment in the amount of $1,200,000, which represents the proceeds of his drug trafficking offenses.
In October 2012, Rhea and 11 others were named in an 18-count indictment charging them with drug trafficking of oxycodone, oxymorphone, and methamphetamine, firearms violations, and money laundering. The charges were the result of a lengthy investigation of individuals who traveled to Florida, Tennessee, and Georgia to obtain oxycodone from pain clinics and other illegal drugs to distribute throughout eastern Tennessee. All 12 charged in the indictment have now been convicted and sentenced.
According to his plea agreement, Rhea admitted that he organized trips to pain clinics in Florida and Tennessee to obtain oxycodone to distribute in the Eastern District of Tennessee. He also admitted that he sponsored others to travel to these clinics and, in exchange, received a portion of the oxycodone tablets prescribed to each individual. Additionally, Rhea admitted that he had directed others to travel to Georgia to obtain methamphetamine to distribute in the Eastern District of Tennessee. During the course of the conspiracy, he admitted that he was responsible for obtaining and distributing over 778,000 milligrams of oxycodone (the equivalent of nearly 26,000 dose units of 30 milligram oxycodone tablets) and 45 grams of methamphetamine.
In October 2012, Rhea was arrested at his residence in Morristown where he and co-defendant Johnny Neeley were found barricaded inside a room which contained oxycodone, oxymorphone, and three firearms. Evidence presented at Rhea’s sentencing hearing demonstrated that he continued to direct the activities of others involved in this conspiracy after his arrest by directing another individual to retrieve methamphetamine from his residence and destroy it.
This lengthy investigation was the result of the collaborative efforts of the Tennessee Bureau of Investigation, Morristown Police Department, and Hawkins County Sheriff’s Department. Assistant U.S. Attorney Suzanne Kerney-Quillen represented the United States.
Gardiner Man Pleads Guilty to Pharmacy RobberyRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jesse
Mansir, 31, of Gardiner, Maine, pleaded guilty today in U.S. District Court in Bangor to pharmacy robbery.Court records reveal that on August 21, 2014, Mansir entered the Rite Aid Pharmacy in
Gardiner, approached the pharmacy counter and handed a threatening note to a pharmacy technician. He told the technician that he had a gun and he concealed one of his hands. The pharmacist gave Mansir two bottles of Oxycodone and he fled.Law enforcement officers located Mansir with the aid of a K9 and recovered one of the stolen Oxycodone bottles. A Gardiner police officer identified Mansir as the robber after reviewing surveillance video from the pharmacy. Two of the pharmacy employees also identified him as the robber from a photo array.
Mansir faces up to 20 years in prison, a $250,000 fine and restitution. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the Gardiner Police Department, the Maine State
Police, the Kennebec County Sheriff’s Office, and the Federal Bureau of Investigation.Gardiner Man Pleads Guilty to Bank RobberyRead the Press Release
Contact: F. Todd Lowell
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that John C.
Slater, 66, of Gardiner, Maine, pleaded guilty today in U.S. District Court in Bangor to bank robbery.According to court records, on June 23, 2014, the defendant robbed $15,000 from the
Bank of Maine, in Hallowell, Maine after handing a bank employee a demand note that read: “Im Here to Rob your Bank, no silent Alarms my cell Phone rings, your all dead, I have a hand grenade, and a gun, no marked bills, or inked, if so, one day I will come back and kill all of you, do you understand.???”The ensuing investigation identified the defendant as a suspect. On June 27, 2014, law enforcement officers executed search warrants at two locations where the defendant had been living. Those searches revealed evidence that connected the defendant to the bank robbery. On
July 9, 2014, the defendant was arrested in New Hampshire.Slater faces up to 20 years in prison, a $250,000 fine and mandatory restitution. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation
Office.The investigation was conducted by the Hallowell, Augusta and Gardiner Police
Departments; the Maine State Police; and the Federal Bureau of Investigation.Gambino Crime Family Associate Gennaro Bruno Charged with the 2002 Murder of Martin BosshartRead the Press Release
Earlier today, an indictment was unsealed charging Gennaro “Jerry” Bruno of the Gambino organized crime family of La Cosa Nostra (the “Gambino crime family”) with racketeering and racketeering conspiracy, including predicate acts of murder, narcotics trafficking, extortion and obstruction of justice.1 Bruno was arrested today in Las Vegas, Nevada, where his initial appearance for removal proceedings to the Eastern District of New York is scheduled for later today at the Lloyd D. George United States Courthouse, 333 Las Vegas Boulevard South, Las Vegas, Nevada.
The charges and Bruno’s arrest were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“As alleged, Gennaro Bruno started his criminal career at a young age as a member of a street gang where he earned his criminal credentials. He then graduated to become an associate in the Gambino crime family, where he proved himself to be both an earner for the family and capable of murder. The arrests and charges announced today are a testament to the tireless pursuit of justice by law enforcement,” stated United States Attorney Lynch. “We will not rest until violent criminals who use their mafia ties to obstruct justice and evade the law are brought to justice.” Ms. Lynch extended her grateful appreciation to the FBI, New York City Police Department and the Queens County District Attorney for their outstanding assistance in this case.
FBI Assistant Director-in-Charge George Venizelos stated, “As alleged, Gennaro “Jerry” Bruno was originally trained as a member of the “Young Guns.” After being released from prison, Bruno was promoted to associate of the Gambino crime family. In January of 2002, Bruno executed Martin Bosshart by shooting him in the back of the head. Bruno was as ruthless as he was calculating, and after a long run of evading justice, Bruno’s gig is up.”
According to the indictment and other court filings, when Bruno was released following a term of imprisonment from approximately 1997 to 2000, he emerged as an associate of the Gambino crime family, having graduated from the local gang of young men referred to as the “Liberty Posse” or the “Young Guns.” Over the next 14 years, before his arrest today, Bruno engaged in a myriad of crimes with and on behalf of a faction of the Gambino crime family aligned with Joseph “JoJo” Corozzo, a powerful Gambino member who had risen to become the consigliere of the family. Bruno and other Gambino crime family members and associates moved large quantities of high-potency marijuana from Canada into the New York City area. In 2001, Bruno’s criminal associate Martin Bosshart began efforts to exclude one of Bruno’s coconspirators from the marijuana importation operation. In an effort to prevent Bosshart from doing so, Bruno plotted with other Gambino crime family members and associates, including Todd LaBarca, to murder Bosshart.2 On the night of January 2, 2002, Bruno and others lured Bosshart to an isolated location in Queens, New York. There, Bruno allegedly shot Bosshart in the back of the head at point-blank range, killing him immediately. The body of Martin Bosshart, who was 30 years old at the time, was recovered at the scene.
Thereafter, Bruno evaded justice for years and conspired with other Gambino associates to obstruct an official grand jury proceeding into the Bosshart murder, while continuing to participate in the core money-making activities of the Gambino crime family, including drug trafficking and extortion. As part of the alleged pattern of racketeering, Bruno, among other things, used his position in the Gambino crime family to extract extortionate payments from the owner of a waste carting company in Queens, New York.
The government’s case is being prosecuted by Assistant United States Attorney M. Kristin Mace.
The Defendant:
GENNARO BRUNO, a/k/a “Jerry”
Age: 41
Las Vegas, Nevada
E.D.N.Y. Docket No. 14-CR-556 (WFK)
___________________________________________________________________________
1 The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
2 On April 26, 2012, fellow Gambino associate Todd LaBarca pleaded guilty in the Southern District of New York to racketeering, with predicate acts of conspiracy to murder Martin Bosshart, narcotics trafficking, extortion and bookmaking, as well as conspiracy to commit assault in aid of racketeering.
Fraudulent Investment Advisor Sentenced to 36 Months in Prison and Ordered to Pay Victims $886,925.62 in RestitutionRead the Press Release
BOWLING GREEN, Ky. – A Bowling Green, Kentucky, resident who fraudulently promoted himself as an investment advisor was sentenced to 36 months in prison and ordered to pay victims $886,925.62 in restitution on October 23, 2014, by U.S. District Judge Joseph H. McKinley Jr., announced David J. Hale, United States Attorney for the Western District of Kentucky.
Paul Carney, age 46, previously pleaded guilty to all charges in a 32 count federal indictment including 20 counts of wire fraud and 12 counts of engaging in monetary transactions in criminally derived property of $10,000 or more (money laundering).
Between 2008 and November 2011, Carney devised a scheme where he represented himself as an investment advisor, who knew a stock trader, who could invest contributions in the stock market and make investors a substantial profit. As a result, at least eight known victims gave Carney hundreds of thousands of dollars to invest. Carney later told at least one investor that millions of dollars in profits had been realized, but additional cash investments were required because the profits would not be released until taxes and various fees had been paid, resulting in significant additional payments by the victim. In reality, there was no stock trader, investments, or profits. Carney’s scheme resulted in the total loss of $886,925.62.
Also, in furtherance of this scheme, Carney cashed personal checks and cashier’s checks ranging in amounts from $18,000 to $80,000 from investors and laundered the money through purchases of official bank checks which he used for his own personal benefit. As part of the plea agreement, Carney will forfeit a 2009 Ford Mustang Shelby GT which he purchased for $49,000 from the investment scheme and forfeit property located at 1253 Larmon Mill Road in Bowling Green, also purchased with illegally derived funds from the investment scheme.
This case was prosecuted by Assistant United States Attorney David Weiser and was investigated by the Internal Revenue Service (IRS) Criminal Investigation division.
Fort Thompson Man Sentenced for Assault Resulting in Substantial Bodily Injury to A SpouseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to a Spouse was sentenced on October 27, 2014, by U.S. District Judge Roberto A. Lange.
Arnold Roy Walking Bull, Jr., a/k/a Junior Charging Hawk, age 38, was sentenced to 12 months and a day of custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Walking Bull was indicted by a federal grand jury on June 10, 2014. He pled guilty on July 31, 2014.
The conviction stems from an altercation he had with his spouse on October 1, 2013. Walking Bull assaulted the victim, causing her substantial bodily injury.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Walking Bull was immediately turned over to the custody of the U.S. Marshals Service.
Fort Thompson Man Indicted on Assault ChargesRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon, Assault by Strangulation and Suffocation, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Jared Chase Blaine, age 20, was indicted on September 16, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 23, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about August 12, 2014, Blaine unlawfully assaulted his intimate partner with shod feet, as well as strangled and suffocated the victim, resulting in substantial bodily injury.
The charges are merely accusations and Blaine is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Blaine was remanded to the custody of the U.S. Marshals Service pending trial which has been set for December 2, 2014.
Former Schoolteacher & Ponzi Scheme Operator Sentenced to Four Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Carl David Wright, 54, of Iron Station, N.C., to serve four years in prison followed by three years of supervised release for stealing more than $1 million from investors, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Wright to pay $817,975 as restitution to his victim investors.
Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and B.W. Colier, Acting Director of the North Carolina State Bureau of Investigation (SBI) join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Wright was a schoolteacher who solicited investors to invest more than one million dollars in a Ponzi scheme that Wright claimed was a purported “Commodity Investment Group” based in Cherryville, N.C. From August 2008 through March 2013, Wright told investors that he managed the Commodity Investment Group for the purpose of investing in hedge funds, commodities, and Quick Trip service stores. In reality, Wright invested no victim money in anything resembling hedge funds, commodities, or service stores and diverted most victim money to pay supposed returns to other victim investors, commonly referred to as a Ponzi scheme. According to court documents, Wright diverted other victim money to support his lifestyle. Court records show that Wright often siphoned off a large percentage of victim money in cash immediately upon the initial deposit. Indeed, Wright was known at times to carry a significant amount of cash in a black duffel bag, court records indicate. When the scheme collapsed in 2013, Wright had less than $1,000, causing losses to victims of more than half a million dollars. Wright pleaded guilty in July 2013 to one count of mail fraud.
Following the sentencing hearing, Wright was permitted to remain on bond and will be ordered to 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 USPIS and SBI. U.S. Attorney Tompkins also thanked the Commodities Futures Trading Commission for their invaluable assistance in this case. Assistant United States Attorney Kurt Meyers of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Former New Hampshire Financial Consultant PleadsRead the Press Release
Guilty To Fraud, Money Laundering And Tax EvasionCONCORD, NEW HAMPSHIRE – Frederick V. McMenimen, III, 53, of Bow, pleaded guilty in United States District Court for the District of New Hampshire to one count of mail fraud, one count of money laundering and three counts of federal income tax evasion, announced United States Attorney John P. Kacavas.
McMenimen admitted that from approximately September 2008, to about October 2011, he fraudulently solicited more than $1 million in purported investments from some of his financial advisory clients. Each of the clients was an elderly widow whose family had long-standing personal relationships with McMenimen’s family.
McMenimen advised each client to liquidate existing annuities or other investments, to deposit the proceeds in their checking accounts and to then write checks payable to APSB.@ In most instances, McMenimen caused the clients to write those checks by falsely leading them to believe that PSB was another investment vehicle that was better for them than their existing annuities. In actuality, PSB was a shorthand reference to a defunct retail sporting goods business, PSB Sports LLC that McMenimen had once owned and operated. Between approximately September 8, 2008, and October 2011, McMenimen fraudulently induced the clients to write twenty-three checks payable to PSB in the aggregate estimated amount of approximately $1.3 million.
McMenimen deposited the checks into a bank account he maintained in the name of PSB. He then used those funds to purchase official bank checks which he directly or indirectly deposited into a checking account maintained in a relative’s name at an FDIC insured financial institution. The relative in whose name the account was maintained provided McMenimen with several books of pre-signed but otherwise blank checks, thereby affording McMenimen complete access to the fraudulently obtained funds.
Despite expending all of the proceeds on personal expenses, McMenimen did not record any of the fraudulently obtained funds as income on the tax returns he filed for tax years 2008, 2009 and 2010. Because McMenimen underreported his income for those tax years, his tax returns reflected a tax due and owing that was substantially less than his true tax liability. McMenimen is scheduled to be sentenced on February 11, 2015.
This case was investigated by the Bedford (N.H.) field of the Federal Bureau of Investigation, the Portsmouth (N.H.) field office of the IRS’s Criminal Investigation division and the Department of Education. The case is being prosecuted by Assistant United States Attorney Bill Morse.
Former Naples CFO Sentenced to Five Years for Mail Fraud and Tax EvasionRead the Press Release
Fort Myers, Florida – U.S. District Judge John E. Steele yesterday sentenced Shawn Fuentes to five years in federal prison for mail fraud and tax evasion. The Court also ordered Fuentes to pay restitution to Naples Concrete and Masonry in the amount of $1,951,459, and to pay restitution to the IRS in the amount of $624,728. As part of her sentence, the court entered a money judgment in the amount of $106,979.14, the proceeds of the mail fraud. Fuentes pleaded guilty on July 17, 2014.
According to court documents, Fuentes was the Chief Financial Officer of N.C.M. of Collier County, Inc., DBA Naples Concrete and Masonry, which was headquartered in Naples, Florida. On numerous occasions between October 2008 and February 2010, Fuentes fraudulently wrote checks payable to American Express and to Bank of America drawn on the bank accounts of N.C.M. of Collier County, Inc., and then sent them by U.S. mail or Federal Express to satisfy her own credit card debt. As part of the scheme, the fraudulent checks appeared to be written for legitimate business expenses in the accounting system utilized by the company, when in truth Fuentes was paying personal expenses. As a result of the scheme, she obtained in excess of $500,000.
In addition, Fuentes filed a 2009 tax return reporting a taxable income of approximately $35,148. She omitted the amount of money defrauded, misappropriated, or stolen from Naples Concrete and Masonry. The actual taxable income that she had received was $822,060; therefore, she failed to report taxable income in the amount of approximately $786,912. For the calendar year 2009, Fuentes paid $2,671 in taxes rather than $262,081.
This case was investigated by the United States Secret Service and the Internal Revenue Service. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
Former Fugitive Heroin Dealer Sentenced to Nearly Five Years in PrisonRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Birmingham man and former federal fugitive to four years and nine months in federal prison for dealing heroin, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
U.S. District Judge Abdul K. Kallon sentenced PATROPIUS FOSTER, 35, on one count of conspiracy to distribute heroin in Jefferson County between October 2012 and May 2013. The judge also sentenced Foster for two counts of distributing heroin, once on March 19, 2013, and again on April 17, 2013, and on two counts of using a telephone to facilitate drug trafficking on the March date. Foster pleaded guilty to the charges in July. He has remained in custody since his arrest last year.
Foster was among 49 people indicted in 2013 as part of an ongoing initiative between law enforcement and the U.S. Attorney's Office to attack the supply side of the spiraling heroin problem in north Alabama. Foster remained a fugitive from September 2013, when most of the defendants were arrested, until April 2014 when he was arrested in Atlanta.
Of the 49 people indicted in the 2013 sweep, 40 have pled guilty and one defendant was convicted at trial. Foster brings to 39 the number of those defendants who have been sentenced. One defendant pleaded guilty to selling heroin that caused a death and received a 20-year sentence. The remaining sentences have ranged from probation for first-time offenders to 12 1/2 years for the dealers who qualified as career offenders under the Federal Sentencing Guidelines.
Law enforcement agencies working with DEA in the months-long investigation leading to the 2013 indictments and arrests included the Hoover, Pelham, Gardendale, Vestavia Hills, Tuscaloosa, Hueytown, Bessemer and Pleasant Grove police departments, Marshall County Drug Task Force, Gulf Coast HIDTA Task Force, Alabama Beverage Control Board, Alabama Bureau of Investigation, Jefferson and Shelby County sheriff's offices, and district attorney's offices for Jefferson, Shelby and Tuscaloosa counties and the Bessemer Cutoff. Assistant U.S. Attorney L. James Weil Jr. is prosecuting the cases.
Final Individual in Jacksonville Cocaine Conspiracy and Money Laundering Case Sentenced to More Than 14 Years in Federal PrisonRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Larry Andrews (41, Jacksonville) to 14 years and 7 months in federal prison for conspiracy to distribute 5 kilograms or more of cocaine, and conspiracy to commit money laundering. The court also entered a money judgment against Andrews for $98,000, which represents drug proceeds that he laundered through a Jacksonville nightclub. He pleaded guilty on January 22, 2013.
According to court documents, Andrews, Isaiah Bynes, Deangelo Butler, and others participated in a cocaine trafficking conspiracy during which Bynes obtained between 3 and 15 kilograms of cocaine from sources in south Florida and transported the drugs to Andrews and Butler in Jacksonville. Andrews and Butler received the multi-kilograms of cocaine at various places, including on the east side of Jacksonville, and at a dormitory style building that Bynes owned. Andrews and Butler maintained a room at that building to keep cocaine paraphernalia, which was used process the kilograms of cocaine. Andrews sold the cocaine to kilogram level dealers in Jacksonville, primarily those living on the east side. Court documents reveal that Andrews was a long time cocaine dealer on the east side, was involved in drug-related conflicts with other groups in the area, and has been shot on four separate occasions.
Andrews stopped selling cocaine in mid-2010 due to a Jacksonville Sheriff’s Office investigation. He invested $98,000 of drug money into a Gentlemen’s Club that he financed, known as the Vivid Vixen’s Nightclub. At the end of each night, half of the cash generated at the club was delivered to Andrews. The club opened in late 2011 and has since closed.
Andrews was the final individual sentenced in a series of cases related to this conspiracy. Previously, Bynes was sentenced to 14 years and 7 months in federal prison, and Butler was sentenced to 6 years and 3 months in federal prison.
This case was investigated by the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney A. Tysen Duva.
Federal Jury Finds Immokalee Man Guilty of Theft of Government Money and Aggravated Identity TheftRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Ernest Freeman, Jr. guilty of 11 counts of theft of government money and 11 counts of aggravated identity theft. He faces a maximum penalty of 10 years in federal prison for each count of theft of government money, and a maximum penalty of two years in federal prison for each aggravated identity theft count. His sentencing hearing is scheduled for January 26, 2015. Freeman was indicted on June 12, 2013.
According to testimony and evidence presented at trial, between September 2011 and March 2012, Freeman deposited 11 federal income tax refund checks, issued in the names of other individuals, into his business account. In doing so, he used the means of identification of other individuals to steal more than $100,000 in government money.
This case was investigated by United States Secret Service and the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Yolande G. Viacava.
Federal Jury Convicts Friend of Suspected Boston Marathon BomberRead the Press Release
Following an eight-day trial, the jury convicted a college friend of alleged Boston Marathon bomber, Dzhokhar Tsarnaev, for making false statements to investigators assigned to the FBI’s Joint Terrorism Task Force.
The jury found Robel Phillipos, 21, of Cambridge, Massachusetts, guilty of making false statements during the terrorism investigation of the Boston Marathon bombings on April 20, 2013, and April 25, 2013. U.S. District Judge Douglas P. Woodlock scheduled sentencing for Jan. 29, 2015.
“In the wake of one of the most significant events in this City’s modern history – an event which left two young women and a child dead, and many more injured – thousands of ordinary citizens assisted law enforcement in identifying and locating the perpetrators,” said U.S. Attorney Carmen Ortiz for the District of Massachusetts. “Today, a federal jury concluded that Robel Phillipos did just the opposite. He lied to agents when he could have helped. He concealed when he could have assisted. It is a crime to lie to law enforcement agents, and that is why Robel Phillipos was charged and why the jury found him guilty today. But this case also reminds us that our public safety network relies on every citizen in the Commonwealth. We look to all of our citizens – our neighbors, our friends, our colleagues, even strangers whom we have never met before – to assist law enforcement in detecting, preventing, and solving crimes. Mr. Phillipos made a choice: a choice to lie instead of tell the truth. With its verdict today, the jury got it exactly right.”
In August 2014, Dias Kadyrbayev pleaded guilty to obstruction of justice charges related to the Boston Marathon bombing investigation. Kadyrbayev admitted to removing evidence from Tsarnaev’s dormitory room at University of Massachusetts Dartmouth and discarding Tsarnaev’s backpack with fireworks, some of which appeared to have been emptied of their explosive powder, in a garbage dumpster. In July 2014, Azamat Tazhayakov was found guilty by a federal jury in Boston of obstruction of justice charges for his role in impeding the Boston Marathon bombing investigation. His conduct was related to the same conduct as charged against Kadyrbayev that occurred in Tsarnaev’s dormitory room on the evening of April 18, 2013.
At the Phillipos trial, the government proved that Phillipos lied about his knowledge and activities on the evening of April 18, 2013. Specifically, Phillipos repeatedly lied to investigators when he denied that, on the evening of April 18, 2013, he entered Tsarnaev’s dormitory room and saw Kadyrbayev remove a backpack containing fireworks.
According to evidence presented at trial, at 7:00 p.m. on April 18, 2013, Phillipos saw the images released by the FBI of the two suspected bombers and immediately recognized one of them as Dzhokhar Tsarnaev. At 10:00 p.m., Phillipos went with Tazhayakov to Tsarnaev’s dormitory room where he and Tazhayakov watched, as Kadyrbayev searched through Tsarnaev’s belongings and found a backpack containing fireworks. When Kadyrbayev, Tazhayakov and Phillipos left Tsarnaev’s room at 10:30 p.m., Kadyrbayev removed Tsarnaev’s backpack containing fireworks, a jar of Vaseline, and Tsarnaev’s laptop computer. Later that night while Tazhayakov and Phillipos were monitoring the manhunt for the Tsarnaevs on television, Kadyrbayev discussed getting rid of the backpack containing the fireworks with them. Tazhayakov agreed with Kadyrbayev that they should get rid of it. After this conversation, Kadrybayev placed Dzhokhar Tsarnaev’s backpack in a garbage bag and placed it in a dumpster outside their New Bedford apartment. The FBI recovered the backpack a week later, after 30 agents spent two days searching a landfill in New Bedford.
Between April 19, 2013 and April 26, 2013, Phillipos was interviewed five times by investigators conducting the Boston Marathon bombing investigation and during each of those interviews Phillipos lied. At the conclusion of the fifth interview, Phillipos finally admitted that he did go into Tsarnaev’s dormitory room on the evening of April 18, 2013 and that he saw Kadyrbayev remove evidence from Tsarnaev’s room. After he confessed, Phillipos indicated he regretted his decisions. In his signed statement, Phillipos stated: “In retrospect, I should have notified the Police once I knew Jahar was the bomber. Further, I should have turned over the backpack to the authorities.”
The charging statute provides a sentence of no greater than eight years in prison for each of the two false statement counts, three years of supervised release, and a fine of $250,000 for each charge. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The sentencing hearing for Kadyrbayev is scheduled for Nov. 18, 2014, and Tazhayakov’s sentencing is scheduled for Nov. 19, 2014.
U.S. Attorney Ortiz and Special Agent in Charge Vincent B. Lisi of the Federal Bureau of Investigation’s Boston Field Division made the announcement today. This investigation was conducted by the FBI's Boston Division and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies. Essex County Sheriff’s Office, U.S. Department of Transportation – Office of Inspector General, Massachusetts State Police, University of Massachusetts Dartmouth Department of Public Safety, New Bedford Police Department, Dartmouth Police Department, U.S. Treasury Inspector General for Tax Administration (TIGTA), Internal Revenue Service, Criminal Investigations, and Homeland Security Investigations in Boston provided assistance to this investigation.
The case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of U.S. Attorney Ortiz’s Anti-Terrorism and National Security Unit.
Federal Jury Convicts Friend of Suspected BomberRead the Press Release
BOSTON – Following an eight-day trial, the jury convicted a college friend of alleged Boston Marathon bomber, Dzhokhar Tsarnaev, for making false statements to investigators assigned to the FBI’s Joint Terrorism Task Force.
The jury found Robel Phillipos, 21, of Cambridge, guilty of making false statements during the terrorism investigation of the Boston Marathon bombings on April 20, 2013 and April 25, 2013. U.S. District Judge Douglas P. Woodlock scheduled sentencing for Jan. 29, 2015.
U.S. Attorney Carmen Ortiz said, “In the wake of one of the most significant events in this City’s modern history – an event which left two young women and a child dead, and many more injured – thousands of ordinary citizens assisted law enforcement in identifying and locating the perpetrators. Today, a federal jury concluded that Robel Phillipos did just the opposite. He lied to agents when he could have helped. He concealed when he could have assisted. It is a crime to lie to law enforcement agents, and that is why Robel Phillipos was charged and why the jury found him guilty today. But this case also reminds us that our public safety network relies on every citizen in the Commonwealth. We look to all of our citizens – our neighbors, our friends, our colleagues, even strangers whom we have never met before – to assist law enforcement in detecting, preventing, and solving crimes. Mr. Phillipos made a choice: a choice to lie instead of tell the truth. With its verdict today, the jury got it exactly right.”
In August 2014, Dias Kadyrbayev pleaded guilty to obstruction of justice charges related to the Boston Marathon bombing investigation. Kadyrbayev admitted to removing evidence from Tsarnaev’s dormitory room at University of Massachusetts Dartmouth and discarding Tsarnaev’s backpack with fireworks, some of which appeared to have been emptied of their explosive powder, in a garbage dumpster. In July 2014, Azamat Tazhayakov was found guilty by a federal jury in Boston of obstruction of justice charges for his role in impeding the Boston Marathon bombing investigation. His conduct was related to the same conduct as charged against Kadyrbayev that occurred in Tsarnaev’s dormitory room on the evening of April 18, 2013.
At the Phillipos trial, the government proved that Phillipos lied about his knowledge and activities on the evening of April 18, 2013. Specifically, Phillipos repeatedly lied to investigators when he denied that, on the evening of April 18, 2013, he entered Tsarnaev’s dormitory room and saw Kadyrbayev remove a backpack containing fireworks.According to evidence presented at trial, at 7:00 p.m. on April 18, 2013, Phillipos saw the images released by the FBI of the two suspected bombers and immediately recognized one of them as Dzhokhar Tsarnaev. At 10:00 p.m., Phillipos went with Tazhayakov to Tsarnaev’s dormitory room where he and Tazhayakov watched, as Kadyrbayev searched through Tsarnaev’s belongings and found a backpack containing fireworks. When Kadyrbayev, Tazhayakov and Phillipos left Tsarnaev’s room at 10:30 p.m., Kadyrbayev removed Tsarnaev’s backpack containing fireworks, a jar of Vaseline, and Tsarnaev’s laptop computer. Later that night while Tazhayakov and Phillipos were monitoring the manhunt for the Tsarnaevs on television, Kadyrbayev discussed getting rid of the backpack containing the fireworks with them. Tazhayakov agreed with Kadyrbayev that they should get rid of it. After this conversation, Kadrybayev placed Dzhokhar Tsarnaev’s backpack in a garbage bag and placed it in a dumpster outside their New Bedford apartment. The FBI recovered the backpack a week later, after 30 agents spent two days searching a landfill in New Bedford.
Between April 19, 2013 and April 26, 2013, Phillipos was interviewed five times by investigators conducting the Boston Marathon bombing investigation and during each of those interviews Phillipos lied. At the conclusion of the fifth interview, Phillipos finally admitted that he did go into Tsarnaev’s dormitory room on the evening of April 18, 2013 and that he saw Kadyrbayev remove evidence from Tsarnaev’s room. After he confessed, Phillipos indicated he regretted his decisions. In his signed statement, Phillipos stated: “In retrospect, I should have notified the Police once I knew Jahar was the bomber. Further, I should have turned over the backpack to the authorities.”
The charging statute provides a sentence of no greater than eight years in prison for each of the two false statement counts, three years of supervised release, and a fine of $250,000 for each charge. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The sentencing hearing for Kadyrbayev is scheduled for Nov. 18, 2014 and Tazhayakov’s sentencing is scheduled for Nov. 19, 2014.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. This investigation was conducted by the FBI's Boston Division and member agencies of the Boston Joint Terrorism Task Force (JTTF) which is comprised of more than 30 federal, state and local enforcement agencies. Essex County Sheriff’s Office, U.S. Department of Transportation – Office of Inspector General, Massachusetts State Police, University of Massachusetts Dartmouth Department of Public Safety, New Bedford Police Department, Dartmouth Police Department, U.S. Treasury Inspector General for Tax Administration (TIGTA), Internal Revenue Service, Criminal Investigations, and Homeland Security Investigations in Boston provided assistance to this investigation.
The case is being prosecuted by Assistant U.S. Attorneys B. Stephanie Siegmann and John A. Capin of Ortiz’s Anti-Terrorism and National Security Unit.Federal Jury Convicts Brothers in Synthetic Drug Distribution ConspiracyRead the Press Release
DALLAS — A federal jury in Dallas has convicted two brothers on multiple felony offenses stemming from their operation of a dangerous, designer synthetic drug trafficking organization, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Following a nearly two-week trial before U.S. District Judge Jane J. Boyle, Barry Bays, 43, and his brother, Jerad Coleman, 28, both of Fort Wayne, Indiana, were convicted on all counts of a fourth superseding indictment returned by a federal grand jury in July 2014. The charges stem from the Drug Enforcement Administration’s (DEA) Project Synergy that targeted these synthetic drug trafficking organizations.
Specifically, Bays and Coleman were each convicted on one count of conspiracy to defraud the U.S. Food and Drug Administration (FDA); one count of conspiracy to commit mail fraud; and one count of conspiracy to distribute a controlled substance analogue. In addition, Bays was also convicted on one count of possessing a firearm in furtherance of a drug trafficking crime and one count of using a communication facility to facilitate a drug felony.
Seven other defendants charged in the case have pleaded guilty to their respective roles: Samuel Madeley, 22, of Denton, Texas; David Muise, 23, of Londonderry, New Hampshire; Holden Bownds, 23, of Denton; and Aaron Parrish, 31, Jennie Miller, 41, Kyle Boyer, 31, and Brandon Zerler, 26, all of Fort Wayne. Miller was sentenced to 12 months and one day in federal prison for acting as a “straw purchaser” of the firearm possessed by Bays during the drug conspiracy. The other defendants are scheduled to be sentenced in the upcoming months.
Bays owned Little Arm, Inc., that did business as B&B Distribution (B&B) in Fort Wayne and then later in Defiance, Ohio. B&B sold products marketed as “incense,” “potpourri,” “air freshener,” or “aroma therapy products,” which claimed to be “not for human consumption,” to businesses in at least 38 states. Coleman served as a corporate officer for B&B and held various positions within the business.
The government presented evidence that during the conspiracy, Bays, Coleman and others conspired together to defraud the FDA by introducing or delivering an adulterated or misbranded drug into interstate commerce with the intent to defraud or mislead. As part of the conspiracy, Bays, Coleman and others possessed, packaged, labeled, marketed, distributed and sold substances containing various synthetic cannabinoids throughout the U.S. Synthetic cannabinoids are defined as “drugs” under the Federal Food, Drug, and Cosmetic Act (FDCA).
After acquiring the synthetic cannabinoids, Bays and B&B had them mixed with a green leafy (smokable) plant material to create a product commonly referred to as “spice.” That substance was then packaged and labeled with brand names such as “B2 Da Bomb,” “V8,” “Roses,” and “Street Legal.” The products were then sold to customers throughout the U.S. as “incense,” “potpourri,” “air freshener,” or “aroma therapy products,” and “not for human consumption,” when in fact, they were intended for human consumption as a drug.
During trial, the government introduced evidence that Bays had contracted with Muise for Muise to create multiple YouTube videos, reviewing Bays’ “spice” products. Muise’s reviews documented the intended use of Bays’ products as drugs.
Madeley and Bownds collaborated and collectively brokered the sale of Scheduled I controlled substance analogues. They solicited customers via the internet and knew the chemicals they were brokering were being used to produce “spice” intended for human consumption. Madeley and Bownds made multiple sales to Bays and B&B, where he made his own brands of synthetic “spice” and distributed it to various “smoke shops” and convenience stores throughout the U.S.
Bays and Coleman remain in federal custody. A sentencing date has not been set.
The maximum statutory penalties are: conspiracy to defraud the U.S. – three years and a $250,000 fine; conspiracy to commit mail fraud – 20 years and a $250,000 fine; conspiracy to distribute a controlled substance analogue – 20 years and a $1 million fine; possession of a firearm in furtherance of a drug trafficking crime – mandatory five years and a $250,000 fine; and use of a communication facility to facilitate a drug felony – four years and a $250,000 fine. The indictment also includes a forfeiture allegation that requires the defendants to forfeit their proceeds from the offenses as well as vehicles, a residence on Tillman Road in Fort Wayne, and approximately $437,000 in funds seized by the government during the investigation.
The DEA led the investigation with assistance from the Fort Wayne Police Department, Indiana State Police, and the Denton County Sheriff’s Office. Assistant U.S. Attorneys Brian Poe and Brandon McCarthy are prosecuting.
Federal Grand Jury Indicts Charleston Man for Murder of InformantRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that a 38-year-old man was indicted today by a federal grand jury sitting in Charleston for offenses related to the murder of a prosecution witness. According to the seven-count indictment, Marlon Dewayne Dixon, of Charleston, W.Va. distributed heroin on three occasions in May of 2014. On July 12, 2014, Dixon shot and killed Branda Mae Delight Basham, 21, in retaliation for her cooperation with law enforcement in that investigation and to prevent her from testifying or continuing to provide information against him. Dixon has multiple felony convictions and was prohibited from possessing a firearm. The indictment alleges that Dixon was convicted in federal court of cocaine base and cocaine distribution in 1999 and 2006 as well as convicted in Kanawha County Circuit Court of malicious wounding in 2007.
Dixon faces up to life in federal prison or the death penalty, if convicted.
The investigation was conducted by the Charleston Police Department, the Metro Drug Unit (MDENT), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
Click here to see a copy of the indictment. An indictment is only an allegation. A defendant is presumed innocent until and unless he is convicted.
Federal Election Officer Available on Election Day to Field Complaints of Election Fraud and Voting Rights AbusesRead the Press Release
BIRMINGHAM -- U.S. Attorney Joyce White Vance announced today that Assistant U.S. Attorney Pat Meadows will lead the efforts of her office in connection with the Justice Department's nationwide Election Day Program for the Nov. 4 general elections.
Meadows will serve as the District Election Officer for the Northern District of Alabama. In that capacity, he 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, D.C.
"Every citizen must be able to vote without interference or discrimination, and to have that vote counted without it being stolen because of fraud," Vance said. "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 contacts within the department so the public can 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 protection for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, it may violate federal voting rights law to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that those actions are designed to uncover illegal voting. Further, federal law protects the right of voters to mark their own ballot or to choose someone to assist them.
The voting 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 Nov. 4, and to ensure that such complaints are directed to the appropriate authorities, Meadows will be on duty in the Northern District while the polls are open. The public can reach him at the following number: (205) 244-2001.
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 phone number for the local FBI field office is (205) 326-6166.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division's Voting Section in Washington, D.C., by phone at 1-800-253-3931 or (202) 307-3961, by e-mail to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
"Ensuring free and fair elections depends in large part on the cooperation of the American electorate," Vance said. "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."Father & Son Operators of A Third Party Payroll Company Indicted for Defrauding Client Companies of More Than $11 MillionRead the Press Release
Son embezzled at least $3.7 million to pay for strip clubs, alcohol, jewelry and lavish residence
CHARLOTTE, N.C. – The two operators of a third party payroll company have been indicted for stealing more than $11 million from at least 113 clients and using the money to support their personal lifestyles, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. The criminal indictment was returned by a federal grand jury on Thursday, October 23, 2014, and was unsealed today following the arrest of James William Staz, 43, of Iron Station, N.C. James Staz’s father, William James Staz, 72, of Huntersville, N.C., is the co-defendant named in the 10-count indictment.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to the allegations contained in the indictment:
William and James Staz operated “Employee Services.Net, Inc.” (ESN), a third party payroll company the two men formed in 2004 in Cornelius, N.C. James Staz was the vice president and financial manager of ESN until August 2011, when he became the company’s president. His father, William Stanz, was a company shareholder and managed ESN’s day-to-day operations until 2008, when he was incarcerated for a federal bank fraud conviction. William Stanz returned to ESN following his release from prison and continued to be involved in company operations.
As a third party payroll company, ESN provided various personnel services to its client companies, including processing payroll, collecting and paying federal, state and local employment taxes, and preparing and filing the required employment tax forms. In order to provide these services and make payments on behalf of its clients, ESN had access to the clients companies’ bank accounts and directly drafted the funds needed to cover the expenses. At its height, ESN had approximately 500 client companies located throughout the United States.
From about 2008 to March 2014, the defendants defrauded at least 113 ESN clients of approximately $11 million dollars intended for payroll and employment tax payments and used it to support their personal lifestyles. The victim companies include, among others, a company dedicated to delivering services for children with developmental disabilities or chronic illness, families in poverty, and families caring for the elderly and a company involved in the production of racing engines for a number of NASCAR Sprint Cup teams.
During that time period, James Staz embezzled at least $3.7 million in client funds and directed the money to his personal bank account. In order to conceal his embezzlement, James Staz made false entries into ESN’s accounting system to make it appear as though the stolen funds were used for legitimate client expenses. In reality, James Staz used the money to pay for alcohol, strip club entertainment, jewelry, a Mercedes Benz and a luxury home with a lavish three-tiered pool, a cascading waterfall, wet bar and dining area. For example, on October 25, 2012, James Staz embezzled nearly $125,000 from ESN and in the next four days, he spent the stolen funds on nearly $40,000 in charges at strip clubs and night clubs and nearly $120,000 on a new Mercedes Benz. Over the course of the fraudulent scheme, William Staz drew a salary from ESN as high as $200,000, including for the 9-month period he was incarcerated in federal prison.
To conceal their theft and to cover the losses and tax penalties caused to ESN clients by the delinquent payments, the defendants comingled and used client funds ESN collected for a current payroll/tax period to cover the previous period’s payroll and taxes. To further cover their scheme, the defendants then sent regular emails to clients, falsely stating that all employment taxes had been paid, which was not true for some of ESN’s clients.
The indictment charges William and James Staz with one count of wire fraud. James Staz is also charged with nine counts of money laundering. James Staz had his initial appearance today before U.S. Magistrate Judge David Keesler and will remain in custody pending his arraignment and detention hearing, which have been scheduled for Friday, October 31, at 9:30 a.m. William Staz will be ordered to appear on a summons.
The maximum prison term for the wire fraud charge is 20 years and a $250,000 fine. The maximum prison term for each of the money laundering charges is 20 years in prison and a $500,000 fine or twice the amount of the criminally derived proceeds, whichever is greater.
The details contained in this indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation for the case was handled by the FBI and IRS-CI. The prosecution of the case is being handled by Assistant U.S. Attorney Kelli H. Ferry of the U.S. Attorney’s Office, in Charlotte.
Eagle Butte Man Charged with Sexual Contact with A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Sexual Contact with a Minor.
John Earl Miner, age 42, was indicted by a federal grand jury on October 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 22, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 2 years in custody and/or a $250,000 fine, at least 5 years and up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 17, 2014, in Dupree, South Dakota, Miner engaged in, or attempted to engage in, sexual contact with a minor.
The charge is merely an accusation and Miner is presumed innocent until and unless proven guilty.The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Miner was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Eagle Butte Man Charged with Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, or Impeding a Federal Officer Involving Physical Contact.
Lucas Curley, age 23, was indicted on October 15, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 22, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that in March of 2014, Curley forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with a Cheyenne River Sioux Tribe Law Enforcement Officer while the officer was engaged in the performance of his official duties.
The charge is merely an accusation and Curley is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Curley was released on bond pending trial. A trial date has not been set.
Eagle Butte Man and Woman Charged with Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man and woman have been indicted by a federal grand jury for Felony Child Abuse.
Jordyn Blue Coat, a/k/a Jordyn Swan, age 21, and Francis Swan, age 25, were indicted by a federal grand jury on October 21, 2014. They appeared before U.S. Magistrate Judge Mark A. Moreno on October 24, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge stems from an allegation that between August 17, 2014, and October 17, 2014, at No Heart Housing near Eagle Butte, Blue Coat and Swan abused, tortured, tormented, and cruelly punished a child under the age of seven years old.
The charge is merely an accusation and Blue Coat and Swan are presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, the South Dakota Department of Social Services, and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson is prosecuting the case.
Blue Coat and Swan were remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
DeanCoconspirator and Local Methamphetamine Dealer Both Sentenced to Federal PrisonRead the Press Release
A Sioux City man was sentenced October 24, 2014, to 10 years in federal prison, and a Sioux City woman was also sentenced on October 24, 2014, to 5 years in federal prison.
Craig Barclay, age 34, from Sioux City, received his prison term after a February 27, 2014, guilty plea to conspiracy to distribute methamphetamine.
Sarah Berg, age 33, from Sioux City, received her prison term after a May 5, 2014, guilty plea to one count of conspiracy to interfere with commerce by robbery, one count of interfering with commerce by robbery, one count of carjacking, and one count of transporting a stolen vehicle interstate.
Evidence presented at the Jamal and Levon Dean trial revealed on April 15, 2013, Sarah Berg took the Deans along as muscle to an encounter with Jeffery Rollinger (who at the time of the robbery was a drug dealer). As soon as they arrived at Rollinger’s location he was robbed at gunpoint of his illegal drugs and other property and carjacked. In a second robbery committed on April 24, 2013, Jamal and Levon Dean robbed Craig Barclay at gunpoint stealing illegal drugs and other property from Barclay, who at the time of the robbery was a drug dealer.
The October 24, sentencings were punishment for Berg’s role in the April 15 offense and Barclay’s drug trafficking.
Barclay and Berg were sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Barclay was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. Berg was sentenced to 60 months’ imprisonment. A special assessment of $400 was imposed. Barclay must also serve a five-year term of supervised release after the prison term and Berg must serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Both Barclay and Berg are being held in the United States Marshal’s custody until they can be transported to a federal prison.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number for Barclay is 13-4106 and the case file number for Berg is 13-4082.
The case is part of Project Safe Neighborhoods, a cooperative local, state, and federal program aimed at the enhanced prosecution of gun and violent crimes. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the United States Marshal’s Service, the Iowa Department of Public Safety, the Tri State Drug Task Force, the Texas Department of Public Safety, the Sioux City, Iowa Police Department, the South Sioux City, Nebraska Police Department, the Woodbury County (Iowa) Attorney’s Office, the Dakota County (Nebraska) Attorney’s Office, the Nebraska State Patrol, the Dakota County (Nebraska) Sheriff’s Office and the Woodbury County (Iowa) Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Forde Fairchild.
DAVENPORT MAN FACES FRAUD, MONEY LAUNDERING CHARGES Allegedly Defrauded Former Employer of $2.7 MillionRead the Press Release
Rock Island, Ill. – Jim Lewis, U.S. Attorney for the Central District of Illinois, announced that Dominic Scodeller, 47, of the 2000 block of Meadowbrook Drive, Davenport, Iowa, made his initial appearance in federal court today on charges of fraud and money laundering. The grand jury returned the indictment on Oct. 21, 2014; however, the indictment had remained sealed pending the defendant’s arrest and court appearance.
The 15-count indictment alleges that from about 2001 to May 2013, Scodeller defrauded his former employer, Bituminous Insurance Companies (BITCO), which has its headquarters in Rock Island, of at least $2.7 million. As a manager of purchasing and facilities for BITCO, Scodeller allegedly approved payments to bogus entities he created and controlled. After BITCO paid the fraudulent entities, Scodeller allegedly transferred the stolen money from the entities’ accounts for his personal use.
If convicted, the statutory maximum penalty for each count of mail or wire fraud is 20 years in prison, and a fine of up to $250,000; the statutory maximum penalty for each count of money laundering is 20 years in prison, and a fine of up to $500,000, or twice the value of property involved in the transactions, whichever is greater.
Scodeller was arrested today and appeared this afternoon before U.S. District Judge Sara L. Darrow, in Rock Island. Scodeller was ordered temporarily detained in the custody of the U.S. Marshals Service pending a detention hearing scheduled on Oct. 29, at 11:00 a.m.
The case is being prosecuted by Assistant U.S. Attorneys Donald Allegro and Meredith DeCarlo. The matter was referred to federal law enforcement, the FBI and IRS, Criminal Investigation, by BITCO following its internal investigation of the alleged fraud.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
# # # #Chelsea Man Pleads Guilty in Fraudulent Drivers License SchemeRead the Press Release
BOSTON – A Chelsea man pleaded guilty today in connection with a scheme to produce fraudulent identification documents.
Leonel Sanchez, 52, pleaded guilty to conspiracy to produce false identification documents and aggravated identity theft. U.S. District Court Judge Douglas P. Woodlock scheduled sentencing for Jan. 20, 2015 at 2:00 pm. From December 2012 through January 2013, Sanchez bribed an employee of the Massachusetts Registry of Motor Vehicles in connection with a scheme to issue Massachusetts driver’s licenses to individuals who presented fraudulently obtained Puerto Rican identification documents.
This plea is the most recent development in investigations involving identity theft and public corruption relating to the Massachusetts Registry of Motor Vehicles.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts States Police; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Cheryl Garcia, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Regional Office, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eugenia M. Carris of Ortiz’s Public Corruption Unit.