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Friday 22 August 2014
Jury Convicts Nederland Man in Orange County Drug ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 40-year-old Nederland, Texas man has been convicted of drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Stephen Shane Hall, also known as Shane Hall, was found guilty by a jury of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and being a felon in possession of a firearm. The verdict was returned late Thursday, August 21, 2014 following a three-day trial before U.S. District Judge Marcia Crone.
According to information presented in court, from February 2013 to August 2013, law enforcement officers investigated Hall and others regarding the distribution of methamphetamine in the Orange County area. On Aug. 31, 2013, a search warrant was executed at a residence on Spooner Road in Orange County, Texas. During the search, 57 grams of methamphetamine were discovered as well as many items relating to the distribution of narcotics. Officers also located three firearms inside the residence and garage area. A federal grand jury returned an indictment on Nov. 6, 2013, charging Stephen Shane Hall, Misty Hall, Kevin Trent Portie, and Scott Robicheaux with federal drug trafficking violations. Misty Hall, Portie, and Robicheaux have already pleaded guilty and are awaiting sentencing.
Stephen Shane Hall faces a mandatory sentence of life in federal prison. A sentencing date has not been set.
The case was investigated by the Orange County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Drug Enforcement Administration, and the Beaumont Police Department. This case is being prosecuted by Assistant U.S. Attorney Michelle Englade and Special Assistant U.S. Attorney Russell James.
Corrected 8/25/2014
Judge Gives Berks County Businessman 46 Month Sentence for Tax CrimesRead the Press Release
PHILADELPHIA - Harvey G. Bitler, Sr., 57, of Shillington, PA, was sentenced today to
46 months in prison and ordered to pay more than $5 million in restitution for failing to pay over to the government income taxes, Social Security taxes and Medicare taxes withheld from his employees’ paychecks. He was ordered to surrender October 10, 2014, to begin serving his sentence.Bitler was the owner of Big H Farms and BH Farms in Berks County, Pennsylvania. Big H Farms provided labor for mushroom growing facilities and BH Farms employed salaried employees associated with the operation and management of Big H Farms. The companies withheld Medicare and Social Security taxes (FICA taxes) and income taxes from their employees’ paychecks but, between 2007 and 2012, Big H made no payments to the Internal Revenue Service of these withheld taxes. Between 2008 and 2012, BH Farms also failed to pay over all the taxes withheld in the first quarter of 2008, and made no payments to the Internal Revenue Service for the remaining quarters of those years. In total, for these periods, Bitler withheld but failed to pay a total of $4,552,486.71.
U.S. District Court Judge Jeffrey L. Schmehl ordered restitution to the IRS, including interest, in the amount of $5,078,897.06 million, a $100 special assessment, and three years of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigations with the assistance of revenue agents and revenue officers with the Small Business and Self-Employed Division of the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Albert S. Glenn.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Illinois Woman Pleads Guilty to Travelling Interstate to Promote Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Mexican national who was residing in Illinois at the time of her arrest, pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani to interstate travel in aid of a drug trafficking conspiracy.
According to United States Attorney Peter Smith, the defendant, Maria Pina, age 44, admitted to transporting heroin from Illinois to Pennsylvania on February 12, 2014.
Pina was charged in an Information filed on June 22, 2014. The charge against Pina resulted from an investigation by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the Pennsylvania State Police, and Berks County Detectives.
Pina faces a potential maximum sentence of five years in prison and a $250,000 fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Identity Theft Ring Members Sentenced to Federal PrisonRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that Verita Hines-Flagg (age: 54) of Belleville, MI and Benjamin Hines (age: 29) of Detroit, MI were both sentenced to federal prison for their role in an identity theft ring which operated out of Michigan. On August 19, 2014, Benjamin Hines (Hines) was sentenced to 18 months in federal prison for conspiracy to commit mail and wire fraud followed by three years of supervised release. On August 21, 2014, Verita Hines-Flagg (Hines-Flagg) was sentenced to three years in prison for conspiracy to commit mail and wire fraud followed by a two year consecutive sentence for aggravated identity theft, for a total sentence of five years.
According to information released in court, in October 2012, the Brown Deer Police Department was notified by the Kohl’s Department store that two individuals had opened a $1,000 line of credit in an apparent identity theft. Loss prevention personnel in the store witnessed the account opening, the use of the suspicious identification document, and observed the individuals purchase a large amount of merchandise totaling approximately $1,000 immediately after opening the account. The items they purchased included several cell telephones and other items easily re-sold for profit.
When officers arrived they observed a Lincoln car with out-of state plates in the parking lot, blocking traffic. The driver was identified as Hines. Hines-Flagg was identified as the passenger in the vehicle. Both Hines-Flagg and Hines were taken into custody on theft charges. The Lincoln they were driving was a brand new 2012 Luxury Lincoln and was valued at over $50,000. The investigation of the Lincoln determined that the vehicle was a fraudulently leased vehicle and the lessee listed on the Illinois registration was a victim in the identity theft scheme. During the same time period, four other luxury cars were also purchased by the co-conspirators, all of which were purchased by the conspirators using the stolen identities of various crime victims.
Evidence in this case indicated that Hines-Flagg and Hines were working with members of the conspiracy to sell the five stolen vehicles. The total value of the five stolen vehicles was over $300,000. The Lincoln’s contents and personal property of Hines-Flag and Hines were inventoried and contained five fake Michigan driver’s licenses, the personal identifying information of several identity theft victims, and over $20,000 of fraudulently purchased merchandise from various retails stores in the Eastern District of Wisconsin.
The investigation determined that Hines-Flagg and Hines traveled to Wisconsin from Detroit, Michigan in the stolen Lincoln with the intent to obtain property and return to Michigan where the defendants and their co-conspirators intended to sell the property.
The case was investigated by the United States Postal Service, Homeland Security Investigations, the Wisconsin State Department of Justice, and the Brown Deer Police Department. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.Humble Man Sentenced for Multiple Convictions in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Lawrence Tyler, 42, has been ordered to prison for six years following his convictions of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, announced United States Attorney Kenneth Magidson. A Houston jury convicted Tyler on May 12, 2014, following five days of trial and less than four hours of deliberation.
Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, handed Tyler a total of 72 months in federal prison. He was further ordered to pay a $1,238,823.85 in restitution and will also be required to serve a term of three years of supervised release following completion of the prison term.
Tyler, of Humble, ran a durable medical equipment company called 1866-ICPayday.com from 2006 to 2008.
The evidence at trial showed that between January 2007 and December 2008, Tyler engaged in a scheme to defraud Medicare and Medicaid. He falsely billed Medicare and Medicaid for so-called “ortho kits” which consisted of an assortment of various back, knee, ankle, wrist and shoulder braces. Tyler allegedly billed for equipment that was never delivered, billed for equipment using prescriptions from a physician who never treated the patients and upcoded - billed for a higher reimbursed brace but delivered a cheaper brace that either did not fit the billing code or did not qualify for any Medicare reimbursement. During the conspiracy, Tyler submitted approximately $2.4 million in claims for durable medical equipment and was paid approximately $1.2 million by Medicare and Medicaid.
The evidence at trial also showed that Tyler paid kickbacks to a recruiter named Birdie Leroy Revis in exchange for beneficiary information and false prescriptions issued by Revis’ cousin, Dr. John Perry. Many of the beneficiaries testified that they did not know Perry and had never been treated by him. Revis was convicted of illegally receiving kickbacks, while Perry was convicted of conspiracy to commit health care fraud in separate cases.
In addition, the evidence showed Tyler conducted a monetary transaction in criminally derived proceeds when he withdrew approximately $140,000 from Wachovia Bank. The monies were proven to be the proceeds of the health care fraud conspiracy. Additionally, Tyler used these funds to purchase a house in Humble which the United States plans to forfeit in order to repay Medicare and Medicaid for the fraudulently paid claims.Tyler will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was the result of a joint investigative effort of the FBI, the Texas Attorney
Homestead Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Mark Anthony Dacres, Jr., 30, of Homestead, was sentenced today before U.S. District Judge Ursula Ungaro to 81 months in prison, to be followed by three years of supervised release. Dacres was also ordered to pay $34,920.00 in restitution.
Dacres previously pled guilty to one count of possessing fifteen or more unauthorized access devices (social security numbers), in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, special agents executed a search warrant at the residence where Dacres stayed and found numerous prepaid debit cards, printed lists, handwritten notes/papers and books containing the names, date of births, and social security numbers of at least 1,750 individuals. Eighty-five tax returns were filed from the IP address registered to the residence using the names and social security numbers of individuals found on the printed lists and handwritten notes/papers. IRS-CI special agents contacted six of these eighty-five taxpayers and all six taxpayers stated that they did not know Dacres, that they did not authorize Dacres to possess their names, date of births, and social security numbers, and that they did not authorize Dacres to file federal tax returns for the 2013 tax year using their names and social security numbers.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Heber Springs Man Pleads Guilty to Federal Drug Conspiracy ChargeRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Raymond R. Parmer, Jr., Special Agent in Charge of Homeland Security Investigations (HSI) New Orleans, announced that Christopher Arnold Hogan, 47, of Heber Springs pleaded guilty to a federal conspiracy charge related to possession with intent to distribute of 246 grams of Methylone, commonly referred to as “bath salts.”
“Bath salts, the common name for the drugs Christopher Hogan was distributing in the Heber Springs area, are extremely dangerous drugs,” stated Thyer. “They mimic the effects of commonly recognized drugs, such as methamphetamine and MDMA, also known as Ecstacy, but they are more potent and have a greater effect on the user. Through the coordinated efforts of the Cleburne County Sheriff’s Office, Homeland Security Investigations and the United States Postal Inspection Service and the prosecutors in our office, this case has dismantled a drug distribution ring that was threatening the lives of teenagers and young adults in and around Heber Springs.”
“The illegal importation and distribution of bath salts is not only dangerous due to the drug itself, but also because users face potentially deadly contamination from toxic substances added by unregulated backroom manufacturers,” said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans. "Bath salts users frequently require emergency medical treatment, and HSI along with its law enforcement partners will continue to aggressively investigate and seek prosecution of anyone seeking to illegally import and distribute these dangerous illegal drugs."
On July 11, 2012, a grand jury indicted Hogan and five other defendants in an eight count Indictment charging conspiracy as well as possession with intent to distribute and distribution of Methylone, Pentedrone, MDMA, and MDPV. These synthetic narcotics are Schedule I controlled substances or analogs of Schedule I controlled substance, which are illegal to possess and which have no legitimate consumer use.
At the plea hearing before Judge Susan Webber Wright, Assistant United States Attorney Anne Gardner stated that in June, 2011, the Cleburne County Sheriff’s Office was investigating the distribution of synthetic narcotics, generally called “bath salts” in the Heber Springs area. The Sheriff’s Department determined the source for the bath salts was Hogan. In July, 2011, a search warrant was obtained for Hogan’s residence, and evidence of synthetic drug manufacturing, specifically a synthetic cannabinoid, JWH-018, was seized. Hogan was charged in state court and made bond.
In January, 2012, the Department of Homeland Security Investigations intercepted a package in the mail coming from China addressed to Hogan. The package contained Pentedrone, a controlled substance analog of methcathinone. As the investigation continued, it was discovered that another package from China addressed to Hogan had been seized in San Diego, California in June, 2011, during a routine border interdiction of suspicious packages. This package was found to contain 246 grams of Methylone. HSI continued their joint investigation with the Cleburne County Sheriff’s Office and the United States Postal Inspection Service throughout the Spring of 2012, with confidential informants making controlled purchases of Pentedrone from Hogan and others who were obtaining the substance from Hogan.
A number of Hogan’s distributors were charged and pleaded guilty in this case. AUSA Gardner stated that if the charges against Hogan were to be tried in court, the co-defendants would testify that Hogan was receiving distributable quantities of controlled substance analogs that he ordered over the Internet from China. They would further testify that Hogan discussed with them that as long as the substance had a label stating it was not for human consumption, that they could not be prosecuted for distributing the substance. The witnesses would testify that they knew, and the defendant knew, that in fact the substances were intended to be ingested by the people who purchased them to get high.
Hogan faces maximum penalties of not more than 20 years imprisonment, a fine of not more than $1,000,000, and at least 3 years of supervised release following release from prison.
This case was investigated by the Cleburne County Sheriff’s Office, Homeland Security Investigations and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Anne Gardner.
Guatemalan Man Pleads Guilty to Conspiracy to Fraudulently Obtain Counterfeit Green Cards and Social Security CardsRead the Press Release
ALEXANDRIA, Va. – Mauricio Florian-Polanco, a 39-year-old illegal immigrant from Guatemala who was residing in Manassas, Virginia, pleaded guilty yesterday to conspiracy to commit immigration document fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Washington (HSI); and Douglas Keen, Chief of the City of Manassas Police Department, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.
Florian-Polanco faces a maximum penalty of five years in prison when he is sentenced on Dec. 12, 2014.
In a statement of facts filed with the plea agreement, Florian-Polanco admitted to conspiring with others to falsely make Social Security cards and alien registration receipt cards, more commonly known as Green Cards, for individuals whom he believed were illegal immigrants on at least 50 occasions. In furtherance of the conspiracy, Florian-Polanco would meet with individuals who were looking to obtain counterfeit documents, including government agents acting in an undercover capacity, and take their biographic information. Florian-Polanco then would meet with a co-conspirator who would, in turn, create the counterfeit documents.
This case was investigated by ICE-HSI and the City of Manassas Police Department, with assistance from the Northern Virginia Gang Task Force. Special Assistant U.S. Attorney C. Alexandria Bogle is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-283.
Former Little Rock Attorney Sentenced to 60 Months in Prison for Mail Fraud and Tax EvasionRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; and David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI) announced today that United States District Judge Brian S. Miller sentenced former Little Rock lawyer David Patrick Henry, Sr., 71, to 60 months in prison to be followed by two years of supervised release. He was also ordered to pay restitution of $1,021,133.74. $862,086.74 of the restitution is to be paid to the Joe Thomas Swaffar Irrevocable Insurance Trust and $159,047.00 is to be paid to the Internal Revenue Service. An agreement was reached to pursue the forfeiture of his property through civil action.
“This case illustrates that our office will prosecute those who steal the financial security of others, no matter their profession or standing in the community,” stated Thyer. “Mr. Henry used his profession as an attorney to hide his thievery from a family who trusted him. Although, elaborate, he ultimately could not hide his scheme from the trust beneficiaries. Now, his future is 60 months in federal prison and a requirement to pay back the money he stole from this family and the money he owed the IRS.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money as well as skirt their tax obligations,” said Christopher A. Henry, IRS Criminal Investigation, Special Agent in Charge, Nashville Field Office. “Mr. Henry's actions not only caused negative ramifications to those financially connected to him, but also the honest taxpayer when he committed significant tax fraud violations as detailed in the indictment. Tax crimes have erroneously been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to evade our tax system.”
“David Henry is a criminal who stole from a widow and her children. We appreciate our partnership with the United States Attorney’s Office and the IRS Criminal Investigation Division as we worked together to bring him to justice,” said FBI SAC Resch.
On March 21, 2014, a federal jury found David Patrick Henry, Sr. guilty of 25 counts of mail fraud and three counts of tax evasion. The jury also found that his home located at lot 38, Pleasant Valley Estates in Little Rock, Arkansas was subject to forfeiture. According to court records, in March 2002, the Joe Thomas Swaffar Irrevocable Insurance Trust was set up naming Henry, Sr. as Trustee. The Trust was to be funded entirely with the proceeds of insurance policies totaling approximately $1,641,614.12 at the time of the death of Joe Thomas Swaffar. The beneficiaries of the Trust were Swaffar's family members, including his wife and daughter. As Trustee, Henry, Sr. devised, executed and participated in a scheme to defraud the beneficiaries of the Trust by means of false and fraudulent pretenses and representations depriving them of money and the right to control disposition of their money. It was part of the scheme to defraud that Henry, Sr. set up various bank accounts to which only he had access and in which he deposited funds from the proceeds of the Swaffar life insurance policies. Of these accounts, none of the bank statements were mailed to or could be accessed by the Trust beneficiaries. Therefore, the beneficiaries did not know how much money was received from the proceeds of the life insurance policies. The only person authorized to write checks from these accounts was Henry, Sr. Because the Trust beneficiaries did not receive those bank statements, they did not know that Henry, Sr. was writing checks for his benefit and the benefit of his family, including paying for Henry, Sr.’s personal health insurance, personal electric bills, cable television bills, personal mortgage notes for both of his sons, and the purchase of a vehicle for one of Henry, Sr.'s sons, among other things. Henry, Sr. claimed to have paid himself a salary of $2,000 per month for services allegedly performed as Trustee. However, the Trust document does not provide for a salary for the Trustee. Henry, Sr. performed no financial accounting and the Trust beneficiaries were not advised nor did they agree to the salary Henry, Sr. claimed to have paid himself.
In addition, Henry filed joint federal income tax returns with his spouse for calendar years 2005, 2006, and 2007 that failed to report all his taxable income and tax due and owing. For 2005, Henry reported that his taxable income was $0 and tax due and owing was $0, when he knew his actual taxable income for that year was $400,063, resulting in tax due and owing of $114,085. For 2006, Henry reported taxable income of $1,037 when he actually had $55,871 in taxable income for that year, resulting in $7,626 in tax due and owing. Henry filed his 2007 return reflecting taxable income of $1,199, when he knew his actual taxable income was $81,211 for that calendar year, resulting in $13,154 in tax due and owing.
This investigation was conducted by IRS Criminal Investigation and the Little Rock Field Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Angela Jegley.
Former Government Employee Sentenced to Jail for Stealing over $114,000 from Citizen’s Bank AccountDefendant Gained Access to Bank Information While Working at the D.C. Office of Tax and RevenueRead the Press Release
WASHINGTON - Catyondia Ballard, 48, a former employee of the District of Columbia Office of Tax and Revenue, was sentenced today to 16 weekends in jail, to be followed by 180 days of home detention, for the theft of over $114,000 from the bank account of a retired military member, announced U.S. Attorney Ronald C. Machen Jr. and Blanche L. Bruce, Interim Inspector General for the District of Columbia.
Ballard, of Bowie, Md., pled guilty in May 2014 in the U.S. District Court for the District of Columbia to one count of wire fraud. She was sentenced by the Honorable Judge Rudolph Contreras, who also ordered that she be placed on five years of probation. The judge also ordered Ballard to pay full restitution of $114,166 to the victim.
According to the government’s evidence, Ballard became familiar with the victim through her job at the District of Columbia Office of Tax and Revenue. While there, Ballard gained access to the victim’s personal biographical information, as well as the victim’s bank account information. Using the victim’s information, Ballard began wiring funds from the victim’s bank account directly to Ballard’s account at a loan servicing company in order to pay off Ballard’s mortgage. From March 2007 through April 2010, Ballard directed a total of $114,166 of the victim’s funds to Ballard’s account without the victim’s permission.
In announcing the sentence, U.S. Attorney Machen and Interim Inspector General Bruce commended the work of those who investigated the case from the District of Columbia’s Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; and Assistant U.S. Attorney Richard DiZinno, who investigated and prosecuted the matter.
14-182Former Garland, Texas, Man Indicted for Aiming A Laser Pointer at an AircraftRead the Press Release
DALLAS —A federal grand jury has indicted Steven Alexander Chavez, Jr., 23, on one count of aiming a laser pointer at an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, special agents with the FBI arrested Chavez in Lubbock, Texas, where he had recently relocated from Garland, Texas.
According to the indictment, returned earlier this week in Dallas, on or about August 24, 2013, in the Dallas Division of the Northern District of Texas, Chavez knowingly aimed the beam of a laser pointer at a Texas Department of Public Safety (DPS) helicopter.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty is five years in federal prison and a $250,000 fine.
The FBI, Texas DPS and Garland Police Department are investigating. Special Assistant U.S. Attorney Lara Burns is prosecuting.
Florida Man Sentenced for Filing False Claims with Internal Revenue ServiceRead the Press Release
A Lighthouse Point, Florida, man was sentenced today to serve 12 months and one day in prison for filing a false claim for a tax refund with the Internal Revenue Service (IRS), Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney Wifredo Ferrer for the Southern District of Florida announced.
Bradley Bowman was also ordered to pay $300,403 in restitution to the IRS and to serve three years of supervised release. According to court documents, in 2009, Bowman submitted to the IRS a false individual income tax return for tax year 2005 that fraudulently claimed a refund of $299,024. Bowman engaged Penny Jones, who is currently serving 12 years in prison in a related case involving more than 380 false returns, to prepare this false return. Bowman fraudulently claimed his gross income was $447,036 and then falsely claimed that all of his income was withheld to satisfy his income tax liabilities. Bowman pleaded guilty to this charge on May 27.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Trial Attorney Greg Bailey of the Tax Division and Assistant U.S. Attorney Bertha Mitrani for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Florida Man Sentenced for Filing False Claims with Internal Revenue ServiceRead the Press Release
A Lighthouse Point, Florida, man was sentenced today to serve 12 months and one day in prison for filing a false claim for a tax refund with the Internal Revenue Service (IRS), U.S. Attorney Wifredo Ferrer for the Southern District of Florida and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division announced.
Bradley Bowman was also ordered to pay $300,403 in restitution to the IRS and to serve three years of supervised release. According to court documents, in 2009, Bowman submitted to the IRS a false individual income tax return for tax year 2005 that fraudulently claimed a refund of $299,024. Bowman engaged Penny Jones, who is currently serving 12 years in prison in a related case involving more than 380 false returns, to prepare this false return. Bowman fraudulently claimed his gross income was $447,036 and then falsely claimed that all of his income was withheld to satisfy his income tax liabilities. Bowman pleaded guilty to this charge on May 27.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani for the Southern District of Florida and Trial Attorney Greg Bailey of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Felon in Possession Sentenced to Three Years in PrisonRead the Press Release
CORPUS CHRISTI, Texas – Carlos Luna, 45, of Corpus Christi, has been handed a 36-month sentence for his conviction of possession of a firearm by a convicted felon, announced United States Attorney Kenneth Magidson. Luna entered a plea of guilty on Thursday, Aug. 7, 2014.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Luna to the 36-month-term which will be followed by a three-year-term of supervised release.
At the plea hearing, Wallace admitted that in September 2011, he facilitated the sale of three stolen handguns to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The guns had been reported stolen in vehicle burglaries which occurred throughout the Corpus Christi area. The undercover purchases were made on Sept. 13, Sept. 14 and Sept. 27, 2011, at a residence in Corpus Christi and were captured in audio and video recordings.
Luna had admitted he obtained the firearms by breaking into unattended vehicles on Ocean Drive. With previous convictions for assault with contact and aggravated assault in Nueces County, he is prohibited from possessing a firearm.
Luna has been in custody since his arrest on Aug. 23, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the ATF and prosecuted by Assistant United States Attorney Sam Brown IV.Eleven Alleged Members and Associates of the Young Melph Mafia Indicted on Federal Drug and Gun ChargesRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that JEFFREY WILSON, age 29; JACOBI BOYD, a/k/a “CO,” age 22; ALFRED COBBINS, a/k/a “AL,” age 22; JAWAN FORTIA, a/k/a “TITTIE,” age 21; DEONTRE HILLS, a/k/a “SOULJA,” age 22; DEDRICK KEELEN, a/k/a “ROY,” age 21; RUBEN GEIGER, a/k/a “RUE,” age 21; SHAWN GRACIN, a/k/a “GUNNER,” age 21; DELWIN MCLAREN, a/k/a “POO,” age 22; BRYAN SCOTT, a/k/a “KILLER,” age 20; and DARIUS WILLIAMS, a/k/a “D-MAN,” age 22, all residents of New Orleans, were charged yesterday in a five count superseding indictment which was unsealed today. COBBINS and FORTIA remain at-large and should be considered Armed and Dangerous. Photos of these two defendants are displayed below.
Defendant WILSON had previously been indicted in July 2014 for drug conspiracy and two cocaine distribution counts. The superseding indictment charges all defendants with conspiring to distribute and possess with the intent to distribute 28 grams or more of cocaine base or “crack.” Defendants BOYD, COBBINS, FORTIA, HILLS, KEELEN, GEIGER, GRACIN, MCLAREN, SCOTT, and WILLIAMS, who are part of a Central City gang called “The Young Melph Mafia” or “YMM,” were also charged with conspiracy to possess firearms in furtherance of drug trafficking crimes. The third count charges GRACIN and COBBINS with carrying and discharging a firearm in relation to a drug trafficking crime. The superseding indictment also re-alleges that WILSON distributed a quantity of cocaine hydrochloride on or about May 13, 2014, and that on May 30, 2014, he distributed 28 grams or more of cocaine base or “crack.”
Based upon the ongoing investigation, these defendants, most of whom grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years. During the course of this investigation, it was also determined that the defendants connected to the Young Melph Mafia routinely carried firearms to protect themselves while engaged in distributing illegal narcotics.
If convicted of the drug conspiracy, all defendants face a minimum of five years and a maximum of forty years of incarceration, a fine of $5,000,000 and at least four years of supervised release. If convicted of the gun conspiracy, the named defendants face a maximum of twenty years of incarceration, a fine of $250,000 and up to three years of supervised release.
GRACIN and COBBINS face a minimum of ten years of incarceration to be served consecutively to any other sentence imposed if convicted of carrying and discharging a firearm in relation to a drug trafficking crime. If convicted of the cocaine hydrochloride distribution count, WILSON faces a maximum of twenty years of incarceration, a fine of $1,000,000 and at last three years of supervised release. If convicted of the cocaine base or “crack” distribution, WILSON faces a minimum of five years and a maximum of forty years of incarceration, a fine of $5,000,000 and a minimum of four years of supervised release.
“As alleged, these defendants were responsible for dealing significant quantities of narcotics in their own community, and then using firearms as a means of protecting and enforcing their drug-trafficking enterprise,” state U.S. Attorney Polite. “They all now face the prospect of spending 40 years in prison. Those who are engaging in similar criminal conduct should take note. Our federal, state, and local law enforcement agencies are working in unison to eliminate large-scale drug trafficking and the violence that often accompanies it."
“This indictment is evidence that narcotics and firearms crimes are a dangerous mixture and will not be tolerated in our community,” said New Orleans ATF Special Agent in Charge Phillip Durham. “These crimes inevitably lead to violence. ATF, NOPD and our Multi-Agency Gang Unit partners will continue to combat firearms and narcotics crimes as well as gang activity in order to keep our citizens safe. ”
“Our message in this Group Violence Reduction effort is simple -- our community is demanding that the violence stop,” said Mayor Landrieu. “With this indictment, the Multi-Agency Gang Unit has led to the indictments of 95 individuals associated with 9 groups since the fall of 2012. Through NOLA FOR LIFE, we will continue to focus on keeping our citizens safe, reclaiming our neighborhoods, and offering opportunities to those who want to make better choices.”
"This is a signal to other gangs in New Orleans: If you keep up the violence, we will put you away," said Interim NOPD Police Chief Michael Harrison. "Our Homicide detectives are working closely with the U.S. Attorney’s Office as well as the DA’s Office to unravel complex and very dangerous groups who terrorize our community. Together this team collected the evidence necessary to arrest these gang members, who now face the potential of spending decades in prison."
U.S. Attorney Kenneth Polite, Jr. reiterated that the superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department as partners in the metro area’s Multi Agency Gang Unit. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the Multi-Agency Gang (MAG) Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Valuable assistance to the investigation was provided by the United States Customs and Border Protection (CBP) Air and Marine Division. The case is being prosecuted by Assistant U. S. Attorneys Maurice Landrieu, Jr. and Edward Rivera.
(Download Superseding Indictment )
El Salvador Undocumented Alien Sentenced for Illegal Re-entry into U.S.Read the Press Release
BROWNSVILLE, Texas – Jimmy Stanley Brizuela, 43, has been ordered to prison following his conviction of illegal re-entry after removal/deportation, announced United States Attorney Kenneth Magidson. A jury convicted Brizuela, a citizen of El Salvador, on May 13, 2014, following a two-day trial and approximately two hours of deliberation.
Today, U.S. District Judge Andrew S. Hanen, who presided over the trial, handed Brizuela a total of 30 months in federal prison. As an illegal alien, Brizuela is expected to face deportation proceedings following his release from prison.
Brizuela entered the U.S. near the Rio Grande River area west of Brownsville. He and several others had waded across the river carrying bicycles which they then used to try to elude Border Patrol agents. Upon his arrest, Brizuela was determined to be an undocumented alien and citizen of El Salvador who had entered the U.S. illegally. It was further discovered that he had been previously removed from the country just three weeks before - April 5, 2013.
The jury also heard that he was a convicted felon who had been convicted of several felony offenses including possession of stolen property in 1998.
Brizuela testified at trial and admitted to being a former MS18-Mara Salvatucha gang member. He stated he had joined the gang here in the U.S. several years prior and that he returned to avoid other gangs in El Salvador.
Brizuela will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Customs and Border Protection. Assistant U.S. Attorney Oscar Ponce is prosecuting.
Eight Alleged Members and Associates of the Two Six Nation Street Gang Indicted for Racketeering ConspiracyRead the Press Release
Four members of the Two Six Nation street gang and four of their associates have been indicted for their roles in a racketeering conspiracy spanning more than 20 years, as well as murder and drug trafficking charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David A. Capp of the Northern District of Indiana, Special Agent in Charge Carl Vasilko of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Chicago Field Division, Special Agent in Charge Jack Riley of the Drug Enforcement Administration’s (DEA) Chicago Field Division and Special Agent in Charge W. Jay Abott of the FBI’s Indianapolis Division made the announcement.
“Today’s action reflects the most recent in the department’s continuing efforts to free communities within East Chicago, Gary and Chicago from the scourge of gang violence and drug dealing,” said Assistant Attorney General Caldwell. “Over the years, the U.S. Attorneys’ Offices and the Criminal Division have partnered to use RICO and other federal charges to disrupt and dismantle violent gangs like the Imperial Gangsters, the Latin Kings and now the Two Six Nation. These rolling prosecutions of violent gangs in this region demonstrate the department’s commitment to ensure that no gang is able to maintain a foothold in these communities.”
“This is our third use of the federal RICO statute against violent street gangs operating in northwest Indiana,” said U.S. Attorney Capp. “This indictment was the result of extensive federal-local law enforcement work on both sides of the state border. Our investigations continue and we will not hesitate to utilize the power of the RICO statute to remove these individuals from the streets.”
The second superseding indictment returned by a federal grand jury on Aug. 21, 2014, and unsealed today, charges Adron Herschel Tancil, aka “Awol,” 36, of East Chicago, Indiana; Jesus Valentin Fuentes, aka “Chu Chu,” 39, of Gary, Indiana; Frank Perez Jr., aka “Pumpkin,” 33, of Verona, Pennsylvania; and Anthony Cresencio Aguilera, aka “P-nut,” 35, of Portage, Indiana with RICO conspiracy and conspiracy to engage in drug trafficking, including marijuana, cocaine, crack cocaine, heroin and ecstasy. Also charged in the narcotics conspiracy are Oscar Cosme, aka “Cos,” 41, of East Chicago; Ester Carrera, aka “Mama D,” 61, of Gary; Paul Brock, aka “Big Brock,” 27, of Gary; and Alma Delia Carrera, 28, of Gary. Both the RICO and narcotics conspiracies allege criminal conduct spanning more than 20 years, from January 1992 to the present.
The indictment further charges defendants Tancil, Fuentes and Cosme with the May 16, 2003, homicide of Julio Cartagena in East Chicago. Kiontay Kyare Pennington has already pleaded guilty to murder in aid of racketeering for his role in this homicide.
In addition, the indictment charges Frank Perez with the July 13, 1999, murder of Jose Pena Jr. in Whiting, Indiana.
The charges contained in an indictment are merely accusations and all persons charged are presumed innocent until and unless proven guilty in court.
This case is being investigated by the ATF, DEA, FBI, East Chicago Police Department and Whiting Police Department, with assistance from the Chicago Police Department, Gary Police Department, Hammond Police Department, Highland Police Department and the Lake County High Intensity Drug Trafficking Area task force. Assistance was also provided by the U.S. Attorney’s Office for the Western District of Pennsylvania.
This case is being prosecuted by Assistant U.S. Attorney David J. Nozick for the Northern District of Indiana and Trial Attorney Andrew L. Creighton of the Criminal Division’s Organized Crime and Gang Section.
Dallas Woman Sentenced in Sex Trafficking of Children ConspiracyRead the Press Release
DALLAS — A Dallas woman, who, along with her gang member boyfriend, pleaded guilty in a sex trafficking case earlier this year, was sentenced this morning, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Erin Patton, 24, was sentenced by U.S. District Judge David C. Godbey to 87 months in federal prison and she will be required to register as a sex offender. Patton pleaded guilty in May 2014 to a superseding information charging one count of conspiracy to commit sex trafficking of children. Her boyfriend, Keith Williams, aka “Chucky Blood,” a documented member of the 59 Bounty Hunter Blood criminal street gang, also 24, pleaded guilty in February 2014 to one count of sex trafficking of children. His sentencing is currently set for September 8, 2014; he faces a maximum statutory sentence of life in federal prison.
According to documents filed in the case, in September 2012, after she ran away from home, 14-year-old “Jane Doe” met Erin Patton. Patton let Jane Doe stay with her, and Patton facilitated Jane Doe’s engaging in commercial sex acts by driving her to locations where the acts occurred and providing her a cell phone so she could post her services on “Mocospace” and Backpage.com. Jane Doe gave Patton a portion of the money she earned from engaging in the sex acts.
Again, in November 2012, after she again ran away from home, Jane Doe contacted Patton. This time, both Patton and Williams picked up Jane Doe and posted her availability to engage in commercial sex acts on Backpage.com. While Williams went to serve a jail sentence shortly thereafter, Patton continued facilitating Jane Doe’s commercial sex acts. Jane Doe eventually left.
In April 2013, Jane Doe again contacted Patton and told her she was still in school, but wanted to leave and wanted Patton to pick her up. Patton and Williams agreed to let Jane Doe stay with them, but they told her she was going to have to engage in commercial sex acts, as she had done in the past, to pay for her expenses. Williams and/or Patton drove Jane Doe to meet with customers and Jane Doe gave all the money she earned to Williams and Patton.
On May 4, 2013, officers with the Dallas Police Department (DPD) encountered now 15-year-old Jane Doe, in a car parked in an area known for prostitution. Williams came by shortly thereafter. He admitted knowing she was 15, driving her to meet with customers, and collecting proceeds from her “dates.”
DPD led the investigation, with assistance from the FBI. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
Convicted Felon Sentenced to 27 Years for Sending Firearms to Puerto RicoRead the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp sentenced Luis A. Rivera (47, Orlando) to 27 years in federal prison for possessing a firearm as a convicted felon. Rivera pleaded guilty on May 28, 2014. He was sentenced on August 20, 2014.
According to court documents, Rivera, who has multiple previous drug trafficking convictions, packaged at least twenty firearms to mail to Puerto Rico as part of an illegal firearms trafficking ring. These firearms included a number of "assault" style rifles with high capacity magazines. Due to his prior felony convictions, Rivera was prohibited from possessing a firearm or ammunition under federal law. In addition, his extensive criminal history qualified him for an enhanced sentenced as an Armed Career Criminal.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu. This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Colombian Man Sentenced to More Than 6 Years in Federal Prison for Conspiracy to Commit Money LaunderingRead the Press Release
Orlando, FL – U.S. District Judge Paul G. Byron sentenced Luis Alberto Marulanda-Cardona (55, Colombia) to 80 months in federal prison for conspiracy to commit money laundering. As part of his sentence, the court also entered a money judgment in the amount of $969,130 reflecting the proceeds of the charged criminal conduct. Marulanda pleaded guilty on April 7, 2014. He was sentenced on August 21, 2014.
According to court documents, beginning in February 2009, Marulanda had a contract with a Colombian drug trafficking organization, pursuant to which Marulanda’s associates picked up bulk cash in the amount of 100,000€ (Euros) per week in the Netherlands. Two months later, a Drug Enforcement Administration (DEA) confidential source met with Marulanda in Madrid, Spain. Marulanda advised the confidential source that two shipments of cocaine had been seized in Portugal, by Portuguese authorities, and that one of his main associates had been arrested. Marulanda stated that as a result of the seizure and arrests, his operations had been suspended in Spain and Portugal. DEA’s Madrid Country Office confirmed that Portuguese authorities had seized several shipments of cocaine, in the amounts and on the dates consistent with those mentioned by Marulanda. Marulanda then moved his operations to Italy. He told the confidential source that his organization sent cocaine to Rome every week aboard commercial planes and that he would return to Rome where he would pick up a large amount of currency. Marulanda requested that the confidential source meet him in Rome, at which time Marulanda would give the source 650,000€ to be laundered. As part of the conspiracy, Marulanda requested assistance to move the narcotics proceeds, in bulk, through New York City, Atlanta, and Orlando into Panama City, Panama and banks in Hong Kong. The total amount of funds that Marulanda attempted to launder is $2,973,285.
This case was investigated by the DEA’s Orlando District Office, with assistance from DEA’s Rome Country Office, Madrid Country Office, Lisbon Country Office, Bogota Country Office, Hong Kong Country Office and Panama Country Office. It is being prosecuted by Assistant United States Attorneys Christopher LaForgia with assistance from Department of Justice Rome-Attachés William Nardini and Cristina Posa.
Clarke County Woman Sentenced to Five Years of Probation and Ordered to Pay Full Restitution After Guilty Plea to Access Device FraudRead the Press Release
The United States Attorney Kenyen Brown announces that Stephanie Hollifield, a 34 year old resident of Grove Hill, was sentenced today. Mrs. Hollifield pled guilty on May 15, 2014, to unlawfully using the credit cards she stole from the home of her employer. She was sentenced to a five year probationary term and order to pay $2,406.96 restitution.
Officers of the Foley, Alabama Police Department investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Daryl Atchison.
California “Vendor” in Identity Theft and Credit Card Fraud Organization Sentenced to More Than Eight Years in PrisonRead the Press Release
A northern California man who served as an information and document vendor in the identity theft and credit card fraud ring known as “Carder.su” was sentenced yesterday to serve 100 months in federal prison. He was further ordered to pay approximately $50.5 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) in Las Vegas made the announcement. U.S. District Judge Andrew P. Gordon of the District of Nevada imposed the sentence.
“Carder.su is a criminal organization, and we used the same mob-busting laws and investigative techniques we’ve used with other organized crime networks to dismantle the fraud ring,” said Assistant Attorney General Caldwell. “The new face of organized crime is largely cyber-based, and this case demonstrates the department’s ability to pursue members of these organizations wherever we find them.”
“The structure of the Carder.su organization was sophisticated and designed to prevent attack by rival organizations and to avoid detection by law enforcement,” said U.S. Attorney Bogden. “Its members had defined roles and were responsible for the theft of over $50 million. We are working diligently with our law enforcement partners to ensure that the people who commit these high-tech crimes are put out of business.”
“As this multi-year sentence makes clear, individuals like this defendant who traffic in stolen identities and compromised credit card information should expect to face the full weight of the law,” said HSI Assistant Special Agent in Charge Harris. “This type of fraud has reached epidemic proportions and the economic fallout from these crimes affects us all. HSI will continue to work closely with its law enforcement partners to see that those involved are brought to justice.”
Makyl Haggerty, aka “Wave” and “G5,” 24, of Oakland, Calif., admitted in his plea agreement that in December 2009, he became associated with the Carder.su organization, a criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Specifically, Haggerty operated as a vendor on the organization’s websites using the “Wave” and “G5” nicknames, and sold approximately 1,000 counterfeit identification documents and counterfeit credit cards to other Carder.su members. Haggerty manufactured and sold counterfeit driver’s licenses for at least 15 states and British Columbia.
Fifty-six individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 25 individuals have been convicted and the rest are either fugitives or are pending trial. Haggerty pleaded guilty in February to one count of participation in a racketeer influenced corrupt organization.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com .
California “Vendor” in Identity Theft and Credit Card Fraud Organization Sentenced to More Than Eight Years in PrisonRead the Press Release
WASHINGTON – A northern California man who served as an information and document vendor in the identity theft and credit card fraud ring known as “Carder.su” was sentenced yesterday to serve 100 months in federal prison. He was further ordered to pay approximately $50.5 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) in Las Vegas made the announcement. U.S. District Judge Andrew P. Gordon of the District of Nevada imposed the sentence.
“Carder.su is a criminal organization, and we used the same mob-busting laws and investigative techniques we’ve used with other organized crime networks to dismantle the fraud ring,” said Assistant Attorney General Caldwell. “The new face of organized crime is largely cyber-based, and this case demonstrates the department’s ability to pursue members of these organizations wherever we find them.”
“The structure of the Carder.su organization was sophisticated and designed to prevent attack by rival organizations and to avoid detection by law enforcement,” said U.S. Attorney Bogden. “Its members had defined roles and were responsible for the theft of over $50 million. We are working diligently with our law enforcement partners to ensure that the people who commit these high-tech crimes are put out of business.”
“As this multi-year sentence makes clear, individuals like this defendant who traffic in stolen identities and compromised credit card information should expect to face the full weight of the law,” said HSI Assistant Special Agent in Charge Harris. “This type of fraud has reached epidemic proportions and the economic fallout from these crimes affects us all. HSI will continue to work closely with its law enforcement partners to see that those involved are brought to justice.”
Makyl Haggerty, aka “Wave” and “G5,” 24, of Oakland, Calif., admitted in his plea agreement that in December 2009, he became associated with the Carder.su organization, a criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Specifically, Haggerty operated as a vendor on the organization’s websites using the “Wave” and “G5” nicknames, and sold approximately 1,000 counterfeit identification documents and counterfeit credit cards to other Carder.su members. Haggerty manufactured and sold counterfeit driver’s licenses for at least 15 states and British Columbia.
Fifty-six individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 25 individuals have been convicted and the rest are either fugitives or are pending trial. Haggerty pleaded guilty in February to one count of participation in a racketeer influenced corrupt organization.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.Buffalo Man Pleads Guilty to Drug Charges Involving Perry Housing ProjectsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Darnell Brown, 30, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute 280 grams or more of cocaine base within the Perry Housing Projects before Chief U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the Perry Projects case, stated that the investigation focused on the drug trafficking activities of Tyshawn Bradley, Darnell Brown, Dallas McLamore and their associates. According to the indictment, Bradley, Brown, McLamore and Eric Ross operated a cocaine base and cocaine distribution organization on a daily basis out of several apartments within the Perry Housing Projects, including apartments within the high-rise towers located at 124 Fulton Street and 305 Perry Street. Law enforcement utilized court ordered wire interceptions, undercover drug purchases, covert cameras and traditional police investigative techniques to infiltrate and dismantle this organization.On April 3, 2013, law enforcement officers executed search warrants at 124 Fulton Street and 305 Perry Street during which they recovered over 300 grams of cocaine base and 700 grams of powered cocaine as well as a firearm.
“As we stated before we will not permit anyone to hurt the safety and security of people living in public housing,” said U.S. Attorney Hochul. “Thanks to this prosecution, children are now safe to play both inside and outside the Perry apartments, while residents can live in peace knowing that Darnell Brown, Eric Ross and others who sold drugs in these units have been convicted. We will continue the success of this case by bringing additional cases against remaining City gangs in the near future.”
Brown was arrested in April 2013 along with 12 others including Tyshawn Bradley and Nannette Brown both of Cheektowaga, N.Y., Darnell Brown, a/k/a D, 29, Dallas McLamore, a/k/a Ice, a/k/a Dal, Brandon Atkins, a/k/a YB, Tashawn Gay, Melvin Tucker, a/k/a Hoff, David Varner, Latifah Donaldson, a/k/a LaLa, Tara Robinson, a/k/a Coek, and Phayon Redmond, a/k/a Booper, all of Buffalo. Brown is the third defendant to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Matthew Renneman, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for January 14, 2015 at 9:00 a.m.Bozeman Man Sentenced for Embezzling over $300,000 from Elderly and Disabled ClientsRead the Press Release
MISSOULA - A Bozeman man was sentenced Thursday for embezzling over $300,000 entrusted to him by the Social Security Administration, the Veterans Administration, the U.S. Railroad Retirement Board, and private funds for 36 individuals needing help with their money by reason of age or disability. William Wise, 50, was sentenced to 30 months in prison and 3 years supervised release. In addition, Wise was ordered to pay $369,582 in restitution. He was also ordered to forfeit $369,582 to the United States.
Wise was sentenced in connection with his May 2014 guilty plea to mail fraud.
In a sentencing memorandum, Assistant U.S. Attorney Chad Spraker told the court that in 1994, William Wise started a consulting business, Walking Cross Incorporated (WCI), with his friend John Heintz. In or about 2000, WCI began providing personal financial services for elderly and disabled clients, including those receiving money from the Social Security Administration (SSA), the Veterans Administration, and the U.S. Railroad Retirement Board. The agencies appointed WCI to act as a representative payee to manage federal money for the benefit of those having difficulty managing their own affairs.
In the Fall of 2007, Audrey Reese became a client of WCI, and Wise had a power of attorney over her financial accounts. Reese died in April 2011. Helen Carey, a family friend of Reese, was appointed as Reese's personal representative. In the process of administering Reese's estate, Carey requested bank records from Wise. Wise did not respond to Carey's multiple requests, so she obtained copies of Reese's bank records directly from the bank. Upon reviewing the records, Carey discovered that Wise had written large checks from Reese's account beginning in fall 2007.
Bank records for WCI show that numerous checks, often in amounts of $1000 or $2000, were drawn from Reese's bank account and deposited into the WCI account. The checks did not bear any indication that they were drawn for Reese's personal expenses and were deposited into the WCI account on days when it was nearly overdrawn. Wise also transferred money from other client accounts into the WCI account during times when it was close to being overdrawn.
After his records were seized through a search warrant, Wise was interviewed in April 2012. Wise told investigators that he used WCI funds to pay several credit cards used for personal expenses. Wise admitted that WCI was not an approved fee-for-service organizational representative payee, which would have allowed WCI to charge clients for administering their benefits. Nevertheless, Wise charged fees to SSA beneficiaries at a rate of $35 a month for clients with Supplemental Security Income and $50 a month for clients with Social Security Disability Insurance. He also stated that when clients had negative balances, other SSA beneficiaries' funds would be used to cover the shortfall.
Wise was interviewed again on December 21, 2012. According to Wise, his misuse of fiduciary funds started before 2000, when he "advanced" approximately $2000 from M.H.'s account to WCI. Wise admitted to using money from the WCI account to send his children to summer camp and purchase catering products for a side business. Wise also stated that his personal living expenses were paid out of the WCI account. When clients asked him questions, he would show them balances when in fact the clients had no money. In total, Wise embezzled $369,582 of his clients' money.
Assistant U.S. Attorney Chad Spraker prosecuted the case. The investigation was collaborative effort between the State of Montana Division of Criminal Investigations; Social Security Administration, Office of Inspector General; Federal Bureau of Investigation, Department of Veteran's Affairs, Office of Inspector General; and the U.S. Railroad Retirement Board, Office of Inspector General.
Bankers and Attorney Sentenced to Prison for Fraud, False Statements, and Making a False Claim against the United StatesRead the Press Release
PANAMA CITY, FLORIDA– Late yesterday afternoon, United States District Judge Richard Smoak sentenced Donald Terry Dubose, a/k/a “Terry Dubose,” 66, of Panama City Beach, Florida, Elwood Ladon West, a/k/a “Woody West,” 40, of Monroeville, Alabama, and Frank Alfred Baker, 62, of Marianna, Florida, to federal prison due to their conviction on charges including conspiracy to commit wire fraud, wire fraud, making false statements, and filing false claims against the Federal Deposit Insurance Corporation (“FDIC”).
Coastal Community Investments (“Coastal”) was a bank holding company that owned Coastal Community Bank, based in Panama City Beach, Florida, and Bayside Savings Bank, based in Port St. Joe, Florida. Coastal Community Bank and Bayside Savings Bank both failed on July 30, 2010. Dubose, the Chairman and Chief Executive Officer of Coastal and the largest Coastal shareholder, was convicted at trial of conspiracy, seven counts of wire fraud, three counts of making false statements to the FDIC, and one count of filing a false claim with the FDIC. Dubose was sentenced to 48 months imprisonment. West, the Chief Financial Officer of Coastal and a Coastal shareholder, was convicted at trial of seven counts of wire fraud, three counts of making false statements to the FDIC, and one count of filing a false claim with the FDIC. West was sentenced to 36 months imprisonment. Baker, the attorney for Coastal and Coastal’s second largest shareholder, was convicted at trial of conspiracy, four counts of wire fraud, one count of making false statements to the FDIC, and one count of filing a false claim with the FDIC. Baker was sentenced to 48 months imprisonment. All three defendants were also sentenced by the Court to serve a period of three years supervised release following their imprisonment, and ordered to pay $4,538,399.09 in restitution to the FDIC.
This case involved a significant fraud committed against the Government relating to the FDIC’s Temporary Liquidity Guarantee Program (TLGP), which was created at the height of the nation’s financial crisis in October 2008. The purpose of the TLGP was to encourage banks to begin lending to one another again, and thereby, help to stabilize the economy. To accomplish this, the TLGP provided that the FDIC would guarantee a loan made by one financial institution (the “lender”) to another financial institution (the “borrower”) in an amount up to 125% of the borrower’s existing unsecured debt, thus assuring repayment to the lender by the borrower or, in the event of default, by the FDIC.
The evidence at trial showed that in October 2008, Coastal had a $3,000,000 secured loan with RBC Bank (USA), which was secured by 100% of the stock of Coastal Community Bank and Bayside Savings Bank (the “RBC Loan”). At that time, the RBC Loan was in default, thus giving RBC the ability to exercise its right to take the pledged stock that secured the loan and take over Coastal Community Bank and Bayside Savings Bank. Under pressure from RBC to repay this debt, the defendants falsely certified to the FDIC that the RBC Loan was unsecured, knowing for a fact that it was instead a secured loan, so that Coastal could get an FDIC-guaranteed loan under the TLGP.
The evidence at trial established that Coastal obtained a $3,750,000 loan from central Florida-based CenterState Bank. Based on the defendants’ misrepresentations, the CenterState Bank loan was guaranteed by the FDIC under the TLGP (the “TLGP Loan”), and as provided by the program, represented 125% of the RBC Loan. Coastal used the proceeds of the TLGP Loan to repay the RBC Loan.
In June 2010, Coastal defaulted on the TLGP Loan, and CenterState Bank subsequently filed a claim with the FDIC for payment of the full amount due on the TLGP Loan, plus interest. The FDIC paid CenterState’s claim by wiring $3,805,833.34 in principal and interest from the FDIC to CenterState.United States Attorney Pamela Marsh stated, “This kind of fraud committed by bank insiders against programs designed to help our citizens will not be tolerated. Not only is such conduct a breach of trust, it is harmful to our communities and our nation. These significant sentences today provide a strong message to those working in the banking industry that insider fraud, deception, and greed will be met with firm justice.”
Matt Alessandrino, Assistant Inspector General for Investigations, FDIC, said, “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the U.S. Attorney's Office and our law enforcement colleagues in investigating the fraud that led to these convictions today. It is particularly troubling to the FDIC OIG when bank insiders and other professionals affiliated with the bank violate the public trust and engage in activities that cause losses to the Deposit Insurance Fund or harm FDIC programs designed to restore the strength of the banking system. We are committed in our efforts to maintain integrity in our nation's banks.”
Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, said, “Bank executives who commit fraud impact the safety and soundness of financial institutions. My office will continue its vigorous pursuit of those who undermine the Federal Reserve’s ability to carry out its supervisory responsibilities over banks and bank holding companies it regulates. I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to these convictions.”
This case was investigated by the Federal Reserve – Office of the Inspector General, the Federal Bureau of Investigation, the FDIC, and the Office of the Special Inspector General for the Troubled Asset Relief Program.
The case was prosecuted by Assistant U.S. Attorneys Gayle Littleton and Ryan Love, with the invaluable assistance of Federal Reserve – Office of the Inspector General Special Agent Amy Whitcomb.
Thursday 21 August 2014
Wisconsin Man Ordered to Pay Restitution to a Victim in a Child Pornography CaseRead the Press Release
FARGO - U. S. Attorney Timothy Q. Purdon announced that on Aug. 21, 2014, Robert Carey Evans, 58, of Waukesha, Wis., was ordered by U. S. District Judge Ralph R. Erickson to pay $3250 in restitution to a child pornography victim. This is the first time that the Federal District Court in North Dakota has ordered a Defendant to pay restitution to a victim whose abuse appears in the child pornography possessed by the Defendant under the new guidelines set forth by the United States Supreme Court.
In April of this year, the U. S. Supreme Court issued an opinion in Paroline v. United States, holding that possessors of child pornography may be held liable for a victim’s losses caused by the trade of her images. The Supreme Court held that district courts should order restitution where “the defendant possessed a victim’s images” and the “victim has outstanding losses caused by the continuing traffic in those images but where it is impossible to trace a particular amount of those losses to the individual defendant.”
On Oct. 25, 2013, a 12-person jury found Evans guilty of 14 counts of possession of child pornography and he was sentenced to 10 years in prison on Feb. 24, 2014. Following the Defendant’s conviction, the victim submitted a claim for restitution for her losses that she incurred as a result of Evans’ criminal conduct.
This case came to the attention of law enforcement after a North Dakota Bureau of Criminal Investigations special agent assigned to the Internet Crimes Against Children Task Force discovered two computers geographically located in North Dakota that were sharing child pornography in a peer-to-peer network. A search warrant was issued for Evan’s Fargo apartment where task force officers seized more than 13 hard drives and 43 DVDs containing child pornography. A subsequent forensic examination of this media revealed more than 22,000 images and nearly 1400 videos of child pornography.
The case was investigated by Homeland Security Investigations, North Dakota Bureau of Criminal Investigation and the Fargo Police Department.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood in conjunction with Internet Crimes Against Children Task Force (ICAC) help Federal, State and Local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations and criminal prosecutions. Project safe childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Westlake Cardiologist Indicted for Performing Unnecessay Medical Procedures and Tests to Overbill Insurers by $7.2 MillionRead the Press Release
A 16-count indictment was unsealed in federal court charging a Westlake cardiologist with performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $7.2 million, law enforcement officials said.
Dr. Harold Persaud, 55, was indicted on one count of health care fraud, 14 counts of making false statements and one count of engaging in monetary transactions in property derived from criminal activity.
The indictment was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, and Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region.
“The charges in this case are deeply troubling,” U.S. Attorney Dettelbach said. “Inflating Medicare billings alone would be bad enough. Falsifying cardiac care records, making an unnecessary referral for open heart surgery and performing needless and sometimes invasive heart tests and procedures is inconsistent with not only federal law but a doctor’s basic duty to his patients.”
“This doctor violated the sacred trust between doctor and patient by ordering unnecessary tests, procedures and surgeries to line his pockets,” Special Agent Anthony said. “He ripped off taxpayers and put patients’ lives at risk.”
“Medical providers have a duty and obligation to provide only those services that are medically necessary and are in the best interests of the patients under their care,” Special Agent in Charge Pugh said. “The conduct alleged in this indictment outlines a disregard for patient needs in exchange for financial gain at taxpayer expense. The OIG will continue to work with our law enforcement and prosecutorial partners to identify fraudulent health care schemes and hold individuals accountable for their actions.”
Persaud had a private medical practice at 29099 Health Campus Drive in Westlake and had hospital privileges at Fairview Hospital, St. John’s Medical Center and Southwest General Hospital, according to the indictment.
Persaud devised a scheme to defraud and obtain money from Medicare and other insurers. The scheme took place between Feb. 16, 2006, through June 28, 2012, according to the indictment.
According to the indictment, his activities in furtherance of the scheme included but were not limited to:
- Persaud selected the billing code for each customer submitted to Medicare and private insurers, and used codes that reflected a service that was more costly than that which was actually performed;
- Persaud performed nuclear stress tests on patients that were not medically necessary;
- He knowingly recorded false results of patients’ nuclear stress tests to justify cardiac catheterization procedures that were not medically necessary;
- Persaud performed cardiac catheterizations on patients at the hospitals and falsely recorded the existence and extent of lesions (blockage) observed during the procedures;
- He recorded false symptoms in patient records to justify testing and procedures on patients;
- Persaud inserted cardiac stents in patients who did not have 70 percent or more blockage in the vessel that he stented and who did not have symptoms of blockage;
- He placed a stent in a stenosed artery that already had a functioning bypass, thus providing no medical benefit and increasing the risk of harm to the patient;
- He improperly referred patients for coronary artery bypass surgery when there was no medical necessity for such surgery, which benefitted Persaud by increasing the amount of follow-up testing he could perform and bill to Medicare and private insurers;
- Persaud performed medically unnecessary stent procedures, aortograms, renal angiograms and other procedures and tests.
As a result of this scheme, Persaud overbilled and caused the overbilling of Medicare and private insurers in the amount of approximately $7.2 million, of which Medicare and the private insurers paid approximately $1.5 million, according to the indictment.
The indictment seeks to forfeit $93,446 in an account in the name of Harold Persaud and $250,188 in an account in the name of Roberta Persaud.
This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Chelsea Rice following an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Visalia Man Indicted for Sex Trafficking of MinorsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Tyrell Richmond, 31, of Visalia, charging him with three counts of sex trafficking of a minor by force, fraud and coercion, and one count of being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to the criminal complaint, on June 21, 2014, FBI’s Fresno Child Exploitation Task Force and members of the Fresno Police Department’s Vice Unit conducted undercover operations targeting prostitutes who appeared to be underage. During the investigation, they detained three 16-year-old girls, all of whom were runaways, at a motel in Fresno. Further investigation revealed that Richmond had prostituted the girls for about one week, first in Visalia and then in Fresno. The girls were required to turn over to Richmond all money they earned and were not permitted to leave the motel room, other than to get ice.
Richmond is also charged with possession of a firearm by a felon. According to the indictment, he has three prior felony convictions.
This case is the product of an investigation by the Federal Bureau of Investigation, the Visalia Police Department, and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Richmond is currently in federal custody. If convicted, he faces a minimum of 15 years and up to life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
United States Attorney’s Office Announces Arrest of Anderson Man in Child Pornography CaseRead the Press Release
Defendant already on parole for child molest case alleged to have possessed
80 images of child pornographyINDIANAPOLIS– Acting United States Attorney Josh J. Minkler today announced the arrest of an Anderson, Indiana, man for possession of child pornography. William L. Ramsey, 55, was arrested by FBI agents at his home yesterday.
“The most vulnerable citizens in our communities deserve the best protection we can provide,” said Acting United States Attorney Josh J. Minkler. “Fighting against sexual predators remains a top priority in our office.”
According to the criminal complaint, detectives from the Indiana State Police (ISP) received information from the National Center for Missing and Exploited Children that Ramsey was in possession of child pornography. Ramsey was on parole from the Indiana Department of Corrections for child molestation at the time. Acting on the information, parole officers went to Ramsey’s house and discovered pornographic material on his personal computer.
The computer equipment and thumb drives were seized and law enforcement obtained a search warrant to further inspect Ramey’s computers. On further investigation, over 80 images were found on his computer depicting minors engaged in explicit sex acts. Child pornography was also located in a folder for the application “My Image Garden” which is a software program used to organize and print photos.
This case was investigated jointly by and the Federal Bureau of Investigation and the Indiana State Police.
Special Agent in Charge W. Jay Abbott thanks the Indiana State Police for their dedicated investigation of this case. “This case exemplifies the strong partnership between the FBI and the Indiana State Police in the pursuit of those who prey on the innocent.”
“Ask the most seasoned police officer what criminal act shakes them to their core and they will tell you it’s crimes against children,” said Indiana State Police Superintendent Doug Carter. “That’s the very reason it is our priority to thoroughly investigate crimes of this nature and partner with federal authorities to seek the maximum prosecution possible of such criminals.”
This arrest comes nearly two years after the United States Attorney’s Office announced a comprehensive crackdown on child exploitation in Indiana. When Operation Community Watch was launched, it allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
According to Senior Litigation Counsel Steve DeBrota, who is prosecuting this case for the government, Ramsey faces a mandatory minimum sentence of 10 years and a maximum of 20 years if convicted.
U.S. Attorney William C. Killian Hosts 2014 Eastern District of Tennessee Reentry Summit in ChattanoogaRead the Press Release
CHATTANOOGA, Tenn. – On Tuesday, August 19, 2014, the 2014 Eastern District of Tennessee Reentry Summit, Working Together for a Solution, was hosted by William C. Killian, U.S. Attorney for the Eastern District of Tennessee, at Chattanooga State Community College.
Approximately 80 individuals from the Tennessee State Department of Corrections, state and local law enforcement, and various service provider representatives attended the summit. Presenters included representatives from Middle Tennessee Community Reentry; Tennessee Mental Health Cooperative; The Next Door, Inc.; Familes Free, Inc.; Veteran’s Justice Outreach, Department of Veteran’s Affairs; Franklin County Drug Court; Tennessee Department of Probation and Parole; U.S. Probation; City of Chattanooga; and U.S Attorney’s Office.
At the direction of the Attorney General, in early 2013 the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that would ensure federal laws are enforced more fairly and—in an era of reduced budgets—more efficiently. Specifically, this project identified five goals:
• To ensure finite resources are devoted to the most important law enforcement priorities;
• To promote fairer enforcement of the laws and alleviate disparate impacts of the criminal justice system;
• To ensure just punishments for low-level, nonviolent convictions;
• To bolster prevention and reentry efforts to deter crime and reduce recidivism;
• To strengthen protections for vulnerable populations.
As part of its review, the Department of Justice studied all phases of the criminal justice system—including reentry—to examine which practices are most successful at deterring crime and protecting the public, and which aren’t. The review also considered demographic disparities that have provoked questions about the fundamental fairness of the criminal justice system.
U.S. Attorney Bill Killian said, “The goal of reentry is reduction of crime and recidivism. Due to the knowledge and expertise of the presenters, representatives attending from the various agencies in the state, local and federal criminal justice systems were able to take away useful information that will help them implement reentry objectives."
(Summit Picture and Caption )
Two Sentenced to Prison for Carjacking and Beating Robbery VictimRead the Press Release
ATLANTA - Frederick Todd Anderson and David Starks have been sentenced for an attempted robbery of a business where the business owner was carjacked, abducted, pistol-whipped, and left lying in a stream behind an abandoned house. A third defendant, Deshawn Antoine Mackey, was sentenced previously.
“This was a terrifying and horrific crime that left the victim with lasting injuries. No one should suffer like this victim,” said United States Attorney Sally Quillian Yates. “The defendants struck the victim, stole his car, and beat him to get his ATM PIN number before they finally left him for dead in a stream behind an abandoned house. The lengthy prison sentences the court imposed on Anderson and Starks today are warranted by the savagery of this crime.”
“These individuals acted in a cold and callous manner with little regard for the life of the victim, and today, justice has been served,” said Acting Special Agent in Charge Ryan L. Spradlin, who currently oversees Homeland Security Investigations in Georgia and the Carolinas. “This case highlights the effective collaboration between federal and local law enforcement agencies to ensure that violent criminals are put behind bars.”
“The victim and the community deserve safety and justice,” said Clayton County Police Chief Greg Porter. “We will continue to work hard as everyone in this case did, to ensure justice is served for the victims, and criminals are captured and investigated. Safety is paramount for the Clayton County community. We appreciate the partnerships that existed with this particular investigation.”
According to United States Attorney Yates, the charges and other information presented in court: On March 11, 2013, the three federal defendants – Anderson, Starks, and Mackey – along with two minors who are being prosecuted by the state, jumped the victim as he walked from his vehicle to his office in College Park, Ga. to begin his workday at a shipping company located near Hartsfield-Jackson airport. The robbers took his wallet, wedding ring, and car keys, and Anderson instructed the minors to take the victim’s car. The victim was then forced into the backseat of the robbers’ vehicle, where he was repeatedly beaten by Anderson until he provided his ATM PIN number. Video surveillance captured Starks and Mackey going to several ATM machines to withdraw money from the victim’s account.
At one point, the victim told the robbers that he had $5000 back at the business location, hoping that police would have already responded to that location. The robbers went back to the office parking lot with the victim, but left when they saw police nearby. From there, they drove the victim to an abandoned house, forced him into the backyard, and pistol-whipped him until they left him for dead, lying in the stream. The victim managed to make it to the street, where a passerby stopped and called police. The victim, who spoke at the sentencing hearings, told the court that he believed that he was going to be killed and that even though he suffered some permanent injury from the beating, he is back at work.
Frederick Todd Anderson, 26, of Riverdale, Ga., has been sentenced to 19 years, 7 months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $8,060. David Starks, 30, of College Park, Ga., has been sentenced to eleven years, eleven months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $8,060. Both Anderson and Starks were assessed a fee of $300. He was convicted on these charges on May 2, 2014, after he pleaded guilty. Deshawn Antoine Mackey, 19, of Riverdale, Ga., was sentenced earlier to five years in federal prison.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Clayton County Police Department.
Assistant United States Attorney Kim S. Dammers prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Two More DBSI Executives Sentenced in Idaho’s Largest Federal Fraud ProsecutionRead the Press Release
Former CEO and General Counsel Sentenced Yesterday
BOISE – Chief United States District Court Judge B. Lynn Winmill today sentenced the last two DBSI defendants convicted at trial to federal prison terms, announced Wendy J. Olson, U.S. Attorney for Idaho. David D. Swenson, 38, of Boise, Idaho, and Jeremy A. Swenson, 41, of Meridian, Idaho, were each sentenced to 36 months in prison, followed by three years of supervised release, and a $4,400 special assessment. Judge Winmill also ordered the pair to pay restitution in an amount to be determined later. David Swenson and Jeremy Swenson are the sons of DBSI founder and former CEO Douglas L. Swenson, 66, of Meridian Idaho. Yesterday, Judge Winmill sentenced Douglas Swenson to 240 months in federal prison. He also sentenced former DBSI general counsel Mark Ellision, 66, of Boise, Idaho to 60 months in federal prison.
All four men were convicted by a federal jury on April 14, 2014, of 44 counts of securities fraud. Douglas Swenson was convicted of an additional 34 counts of wire fraud. During the 42-day trial, the jury heard evidence that DBSI, founded in 1979 and headquartered in Meridian, Idaho, sold a range of security investments, including bonds, notes, and Tenant-in-Common interests (TIC investments) in both improved and unimproved real estate. Until DBSI’s bankruptcy in November 2008, the defendants represented to investors that DBSI was a highly profitable company with a net worth in excess of $105 million, and that it operated a successful business model that minimized risk to its investors and paid fixed returns as high as of 9.5%.
The United States presented evidence that at trial that these representations were false. DBSI’s various businesses were almost entirely unprofitable and dependent on new investor funds in order to continue operations. DBSI’s represented net worth of more than $105-million in 2007 and 2008, was the result of deliberate accounting decisions directed and approved by the defendants, all of whom have advanced degrees in accounting.
The jury heard evidence that although the defendants knew of DBSI’s true financial condition, they withheld accurate financial information and took steps to conceal DBSI’s insolvency from investors, financial advisors, broker dealers, due diligence officers, and DBSI employees. In Private Placement Memoranda and other disclosures provided to prospective investors, the defendants misrepresented DBSI Housing’s income and net worth through deceptive accounting practices; failed to disclose DBSI’s cash shortages and deteriorating finances; misrepresented the likelihood of repayment on large investments in technology start-up companies; and failed to disclose DBSI’s dependence on new investor money to meet its existing obligations.
The jury also heard evidence that DBSI collected monies from investors called “Accountable Reserves” which it explicitly represented belonged to its investors and would only be used for specific expenses. The defendants diverted at least $80 million in investor’s Accountable Reserves for purposes other than those disclosed, including payment of the promised fixed investment returns to existing investors, operation expenses, and investments in technology start-up companies.
Olson said that the DBSI prosecution involved the largest loss amount ever prosecuted in federal court in Idaho. “These significant prison terms for all four defendants should serve as a clear message for business executives and their corporate counsel,” said Olson. “Potential investors deserve to know the truth. Investment companies and their representatives who commit fraud and put individuals’ hard-earned money at risk will themselves pay a steep price in terms of their freedom, and they will be held responsible to repay those they have victimized.”
“This complex financial investigation shows that the appearance of success can be a disguise for a scheme of investment fraud," said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the state of Idaho. "Investment schemes can thrive for a time on false claims, but in the end is simply a ‘house of cards’ which collapses. IRS Criminal Investigation, along with our law enforcement partners, will vigorously pursue corporate officers who victimize their investors and violate the public trust.”
Two Indicted with Impersonating Federal Agents in Immigration ScamRead the Press Release
BOSTON – Two men were charged today in federal court in Boston with impersonating federal agents in connection with a scheme to defraud persons trying to obtain legal resident status in the United States.
Francisco Soares, 44, of Foxborough and Paul Stein, 58, of Mashpee, were charged with conspiracy to impersonate a federal officer and falsely impersonating a federal agent.
According to the indictment, form October 2011 until July 2014, Soares posed as a U.S. Immigration and Customs Enforcement Special Agent and Stein posed as a Federal Bureau of Investigation employee. The men told persons who were present in the United States illegally that they could fix their immigration problems, remove any impediments including evidence of prior immigration arrests, and get them lawful permanent resident status – known as a “green card” – in exchange for as much as $10,500. Stein allegedly fingerprinted the aliens, for a fee of $50-$250, ostensibly to facilitate the process of “cleaning” the aliens’ records. The aliens were charged various amounts in incremental payments and the process often extended over a period of months or even years.
The charging statutes provide a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, made the announcement today. The Massachusetts State Police, Woburn, Foxborough, and Mashpee Police Departments, and Bristol County Sheriff’s Office also assisted with the investigation. The case is being prosecuted by Thomas E. Kanwit of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Twenty-Six People Indicted for Heroin and Drug Trafficking in ToledoRead the Press Release
Twenty-six people were indicted for their roles in a conspiracy to bring large amounts of heroin, cocaine and marijuana to Toledo from Arizona, California, Illinois and Mexico, law enforcement officials said.
The 55-count federal indictment was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, Toledo Police Chief William Moton and Lucas County Sheriff John Tharp.
“Heroin abuse is an epidemic in our community that takes lives and destroys families,” Dettelbach said. “We will continue to target drug traffickers while also working to reduce demand and get treatment for those who need it.”
“This is another example of the international drug trafficking connections that are plaguing our communities with danger and heroin,” Anthony said. “The FBI will continue collaborative law enforcement efforts to combat these violent organizations.”
“Through the working relationship that has been developed between the Toledo Police Metro Drug Task Force and the Federal Bureau of Investigation we have become more efficient in targeting the mid- and upper-level heroin dealers in Toledo and surrounding communities,” said Toledo Police Chief William Moton. “These arrests are a byproduct of this successful collaboration. The City of Toledo and surrounding areas are the benefactors of these efforts as the spread of heroin has the potential to deteriorate the standard of living in our community.”
Those indicted are from Toledo unless otherwise noted. They are:
Alejandro Garcia, 44; Regina Navarro, 36; Osvaldo Perez, 60; Sean Machaterre, 31; Dicki Isom, 33; Federico Perez, 25; Daryl Mickles, Jr., 31; Keith Hubbell, 30; David Berrera, Jr., 40; Santos Flores, 34, of Oregon, Ohio; Juan Montano, 35; Daniel Montano, 26; Yousvani Gacita, 34; Davi Mata, 32; Willie Edward Smith, 38; Juan Rivera, 34; Paulo Gonzalez, 27; Abdul Shabazz, 39; Davalon Brown, 28; James Munoz, 37; Victoria Santellana, 31; Daniel Barboza, 38; Anthony Rudess, 42, of Curtice, Ohio; Eric Mays-Clausen, 41; Randolph Kemp, 53, and Jacqueline Jaquez, 40.The defendants conspired between 2010 and this month to bring large shipments of heroin, cocaine and marijuana to Toledo for distribution. Garcia obtained the drugs from suppliers in Arizona, California, Illinois and Mexico and then distributed the drugs to mid-level dealers in the Toledo area. Those dealers, in turn, distributed the drugs to other dealers, according to the indictment.
The indictment details scores of transactions and drug sales that took place in Toledo, including locations at Ravine Park Village, Graham Street, Berry Street, North Ontario Street, Bronson Street, Sylvania Avenue, Westfield Park Mall, Main Street, Starr Avenue, Heatherdowns Road and other locations.
Three people – Garcia, Kemp and Isom – face additional charges of being felons in possession of firearms.
Prosecutors are also seeking to forfeit more than $6,800 in cash, six firearms, nine automobiles and homes at 1509 Navarre Avenue and 625 Parker Avenue in Toledo.This indictment is the result of an investigation by the FBI and the Metro Drug Task Force, made up of members of the Toledo Police Department and the Lucas County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Thomas P. Weldon and Michael Freeman.
If convicted, the defendants’ sentences will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Suspended Catholic Priest Pleads GuiltyRead the Press Release
SAN JUAN, Puerto Rico – Israel Berríos-Berríos, a suspended Catholic priest, pleaded guilty today to transporting a minor with the intent to engage criminal sexual conduct, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Berríos-Berríos is facing a possible sentence of 10 to 12 years in prison.
The indictment charged that from on or about July 21, 2008, through on or about July 25, 2008, the defendant did knowingly transport an individual, who had not attained the age of 18 years, in interstate and foreign commerce, with the intent to engage in any sexual activity for which a person could be charged with a criminal offense. According to the Government’s version of facts, the defendant did transport a then 15 year-old male minor identified as “John Doe” to the City of Miami, Florida, where together they took a four-day cruise to the Bahamas aboard the vessel known as “Majesty of the Seas.” While on the cruise the defendant engaged in lewd acts with John Doe, which constitutes a violation of Title 18, USC, Section 2423(a).
“The USAO for the District of Puerto Rico is committed to taking full advantage of our investigative tools in order to protect our children from sexual predators,” said United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez-Vélez. “We commend our team of prosecutors and investigators who worked tirelessly in this case and today achieved this conviction. The public should be reminded to report all inappropriate behavior with children to their local authorities and together, local and federal law enforcement, will see that justice is carried out.”
The case was prosecuted by Assistant U.S. Attorney Marshal D. Morgan, Coordinator of the initiative Project Safe Childhood, and Assistant U.S. Attorney Elba Gorbea.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Store Owner Pleads Guilty to Snap FraudRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that an Anchorage store owner pled guilty to wire fraud and criminal forfeiture in connection with the SNAP federal food aid program that he was authorized to administer out of his store.
Ayub Yusef Eprahin, 44, pled guilty today, before United States District Court Judge Timothy M. Burgess, to two counts of wire fraud and one count of criminal forfeiture. According to a plea agreement, Eprahin faces a maximum of two years of imprisonment and a fine of up to $250,000. As part of his plea of guilty, Eprahin agreed to forfeit $42,489.44 to the United States as proceeds of the fraud.
According to Assistant U.S. Attorney Steve Skrocki, in November 2012, Eprahin was the owner of the Africa and Middle East Market and a participant in the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the “Food Stamp Program,” administered by the United States Department of Agriculture’s Food and Nutritional Service. The program is designed to provide authorized nutritional foods to low-income families. The federal government pays the full cost of the SNAP benefits and also shares with the states some of the administrative costs. Under the SNAP program, authorized recipients are issued a certain amount of benefits each month, which they may use to purchase eligible food items. SNAP recipients typically receive their benefits in the form of a credit on their personal electronic benefit transfer card. The rules of the program prohibit the purchase of items other than food, and the card benefits cannot be redeemed for cash. Eprahin and his store were authorized to accept payment for eligible purchases through SNAP. As a participant in the program, Eprahin was allowed to receive computer issued payments based on authorized purchases made by participants who shopped in his store. As part of the scheme, Eprahin permitted non-food items to be purchased and cash to be distributed to participants in the program using SNAP benefits. Eprahin represented to the SNAP program that the benefits were being redeemed to purchase eligible food items when in fact the purchases were not for eligible items. Eprahin improperly received federal program reimbursement for the ineligible items he sold and the cash he illegally distributed. Sentencing is set for November 7, 2014, in Anchorage.
Ms. Loeffler commends the Federal Bureau of Investigation, and United States Department of Agriculture, who administers the SNAP program, for their investigation of this case.Stockton Woman Sentenced to over 4 Years in Prison for Credit Application Fraud, Aggravated Identity Theft and Firearm ChargesRead the Press Release
SACRAMENTO, Calif. — Alisha Terese Rodriguez, 36, of Stockton, was sentenced on Thursday to four and a half years in prison for credit application fraud, identity theft, and for being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced. U.S. District Court Judge Kimberly J. Mueller ordered Rodriguez to pay $60,010 in restitution.
This case was the product of an investigation by the Stockton Office of the United States Postal Inspection Service. Assistant United States Attorney Michelle Rodriguez prosecuted the case.
According to court documents, Rodriguez used stolen identity and credit information of victims to obtain unauthorized lines of credit. Subsequently, Rodriguez added her name to the unauthorized victim accounts and obtained credit cards to access the lines of credit. Rodriguez charged over $60,000 to the unauthorized lines of credit. She sustained the unauthorized lines of credit by paying monthly bills for the lines of credit with funds from other victims’ bank accounts. On May 9, 2013, federal search warrants were executed on Rodriguez's residence, her parents' residence, and her vehicles. Law enforcement found a loaded .40-caliber stolen pistol in Rodriguez’s handbag. Law enforcement recovered evidence that Rodriguez possessed personal and financial information for more than 300 victims.
Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service, San Francisco Division stated: “We work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those who use the mail to engage in complex fraud schemes. With the support of local law enforcement and the U.S. Attorney’s Office, Postal Inspectors are focusing investigative efforts on these critical investigations."
San Antonio Tax Protester Sentenced to Federal Prison for Tax EvasionRead the Press Release
In San Antonio today, U.S. District Judge Orlando Garcia sentenced Daniel Isiah Thody to 90 months in federal prison followed by three years of supervised release and ordered him to pay $162,857.00 restitution to the Internal Revenue Service announced United States Attorney Robert Pitman, Internal Revenue Service--Criminal Investigation Special Agent in Charge Steven McCollough and Federal Bureau of Investigation Special Agent in Charge Christopher Combs.
On November 8, 2013, a jury convicted Thody on five counts of tax evasion. The jury found that Thody willfully evaded and failed to file income tax returns for calendar years 2006 through 2010. According to evidence presented at trial, Thody intentionally tried to conceal from the IRS his true income by using another individual’s bank account as well as the name of a nominee company--WET Publishing—a company created by his father to produce anti-government publications. During trial, Thody claimed that the IRS had no authority to tax him.
“Hard working taxpayers should not have to shoulder the burden for those such as Mr. Thody who willfully and deliberately neglect to meet their tax obligations as citizens of this great nation. Today’s sentencing should give pause to those that may be attracted to the illusive claim that there is no legal requirement to pay federal income tax,” stated IRS-CI Special Agent in Charge Steven McCollough. “The law is crystal clear on this matter, there is no gray area and the courts have consistently upheld the tax law. IRS Criminal Investigation continues its commitment to aggressively identify and pursue those taxpayers who willfully fail to file their tax returns.”
This case was investigated by the Internal Revenue Service—Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Mark Roomberg and William R. Harris prosecuted this case for the government.
Revised Syracuse Man Sentenced on Gun ChargeRead the Press Release
SYRACUSE, NEW YORK – Yesterday, Derrick Richards (42, of Syracuse, NY) was sentenced to 37 months imprisonment in U. S. District Court according to United States Attorney Richard S. Hartunian. In February, Richards pled guilty to possessing a firearm as a convicted felon, a felony under federal law. In addition to his term of incarceration, U.S. District Court Judge Glenn T. Suddaby ordered that Richards be placed on a 3 year term of federal supervised release.
In June 2013, Syracuse Police officers were called to a residence on W. Calthrop Avenue in Syracuse regarding a domestic dispute complaint involving a weapon. During their investigation police determined Richards was in possession of a 9mm Hi-Point rifle. Given that Richards had previously been convicted of Robbery in the First Degree, he was prohibited from possessing any firearms.
The case was investigated by the Syracuse Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Syracuse Resident Office and prosecuted by Assistant U.S. Attorney Richard Southwick.
Qualcomm Sales Director Guilty of Insider TradingRead the Press Release
SAN DIEGO – United States Attorney Laura E. Duffy announced today that Robert William Herman pled guilty to one count of insider trading. At the time of his illegal trade, Herman was a director in the North America Sales Department of Qualcomm, Inc. (QCOM).
According to Herman’s plea agreement, Herman and a co-defendant were part of an informal stock trading group, and occasionally shared tips and opinions about the stock market. By November 2010, Qualcomm was conducting a review of Atheros Communications, Inc., a technology company, to determine whether to acquire it.
Also according to Herman’s plea agreement, Herman and the co-defendant repeatedly heard from their immediate supervisor that Qualcomm was contemplating a major acquisition—emphasizing that the information was secret. As part of Herman’s plea, he admitted that, on January 4, 2013, he and his co-defendant learned that the acquisition target was Atheros, and they spoke to each other about it by telephone.
Shortly after the telephone call ended, Herman purchased 4,000 shares of Atheros at approximately $37.17 per share for a total price of more than $148,680. Later that day, after news of the acquisition became public, shares of Atheros increased in value. Herman then sold them all for a profit of $29,318.
FBI Special Agent in Charge, Daphne Hearn, said, “Today’s conviction sends a message, that insider trading results in only temporary gains that can lead to long-term losses, to include fines and prison time. The FBI will continue to aggressively pursue those cheaters who don't play by the same rules so the American public will have confidence in our economic system.”
United States Attorney Duffy commented: “Insider trading is a serious offense. This office will continue to work closely with the FBI and other law enforcement partners to protect our nation’s financial markets.”
Herman’s sentencing is currently set for November 21, 2014 at 9:00 a.m. before the Honorable Janis L. Sammartino.
DEFENDANT Robert William Herman Age: 52 City: San Diego, CA CHARGESTitle 15, U.S.C., Secs. 78j(b), 78ff – Securities Fraud (Insider Trading). Maximum penalties include 20 years in prison, $5 million fine and three years of supervised release.
INVESTIGATING AGENCYFederal Bureau of Investigation
*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Quad Cities Area Couple Sentenced for Fraud on the Social Security AdministrationRead the Press Release
DAVENPORT, IA – On August 20, 2014, Robert Dale Alexander, age 45, and Maureen Louise Alexander, age 38, both of Eldridge, Iowa, were sentenced by United States District Judge James E. Gritzner on charges related to defrauding the Social Security Administration, announced United States Attorney Nicholas A. Klinefeldt. Robert was sentenced for his conviction for conspiracy to defraud the Social Security Administration. He was sentenced to 10 months imprisonment, ordered to serve 3 years supervised release following the imprisonment, and pay $100 towards the Crime Victims Fund. Maureen was sentenced to 5 years probation for social security fraud, and she was ordered to pay $25 towards the Crime Victims Fund. Robert and Maureen, jointly and severally, were also ordered to repay $25,297.62 to the United States Government and $22,432.01 to the State of Iowa for benefits overpayments.
On December 21, 2010, Robert Alexander submitted an application for disability insurance benefits (SSD) to the Social Security Administration (SSA) in which he, among other things, falsely reported that he had not worked since 2008. In early 2012, Robert began a relationship with Maureen. For the purpose of obtaining SSD benefits for which he was not entitled, he and Maureen agreed to conceal from the SSA the fact that Robert had been working since 2008. Up through the fall of 2013 Robert and Maureen made additional material false statements including to an investigator with the SSA Office of Inspector General in September 2012 and in other SSA proceedings related to Robert obtaining SSD benefits to which he was not entitled.
This case was investigated by the Social Security Administration (SSA); the SSA Office of the Inspector General; and the Iowa Department of Inspections and Appeals. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Providence Resident Sentenced to Federal Prison for Conspiring to Possess and Distribute HeroinRead the Press Release
PROVIDENCE, R.I. – Ramon Lugo Rentas, 50, of Providence, was sentenced today to 46 months in federal prison for possessing heroin with the intent to distribute, announced United States Attorney Peter F. Neronha, United States Marshal Jamie A. Hainsworth and Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police.
Rentas, who was sought by the U.S. Marshals Service and the Rhode Island State Police Violent Fugitive Task Force on outstanding warrants out of Massachusetts, was charged with trafficking heroin when U.S. Marshals and Task Force members discovered him hiding inside a Providence residence where he stored and sold heroin.
At sentencing, U.S. District Court Judge John J. McConnell, Jr. also ordered Rentas to serve three years supervised release upon completion of his prison term. Rentas pleaded guilty in May 2014, to possession with the intent to distribute heroin.
According to information presented to the court, prior to the date of his arrest, Rentas had been observed by law enforcement at a residence in the Smith Hill section of Providence. On April 18, 2013, as members of the U.S. Marshals Service and the State Police Violent Fugitive Task Force entered the residence, other members of the law enforcement team who had maintained a perimeter outside the building saw Rentas discard an object into a pail on a second floor porch, and then reenter the building. Rentas was located hiding on a second floor landing, where law enforcement also seized a scale and other items used in the packaging and distribution of heroin.
A court authorized search warrant for a 3rd floor apartment Rentas was staying in was obtained. A search by law enforcement resulted in the seizure of three bags of heroin, $6,565 in cash and additional items used in the packaging and distribution of heroin. Rentas admitted to law enforcement and to the court that the items seized belonged to him and that he engaged in the sale of heroin.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.###
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[email protected]Postal Worker Pleads Guilty to TheftRead the Press Release
SHREVEPORT, La. –A U.S. Postal Service mail carrier from Shreveport pleaded guilty to stealing Netflix DVDs and money, U.S. Attorney Stephanie A. Finley announced today.
Frankey Savannah, 30, of Shreveport, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of theft of mail matter. According to evidence presented at the guilty plea, Netflix contacted the U.S. Postal Service about DVD movie losses occurring from July 2013 to October 2013 along a Bossier Parish route. Upon further investigation, law enforcement agents discovered that Savannah, a postal carrier, had been taking the DVDs from the envelopes while conducting his mail carrier route rather than returning them to Netflix as the customers intended. He is responsible for taking a total of 69 DVDs. Savannah was also observed taking cash from some of the mail.
Savannah faces a maximum penalty of five years in prison, three years of supervised release, a $250,000 fine and restitution. A sentencing date of December 10, 2014 was set.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan is prosecuting the case.
Pill Mill Owner Sentenced to 39 Years in PrisonRead the Press Release
KNOXVILLE, Tenn. – On Aug. 18, 2014, Sandra Kincaid, 63, of Maryville, Tenn., was sentenced to serve 470 months in prison by the Honorable Thomas A. Varlan, Chief U.S. District Judge.
After a jury trial in October 2013, Kincaid was convicted of drug and money laundering offenses in conjunction with Breakthrough Pain Therapy Center in Maryville. Kincaid’s husband and co-owner of Breakthrough, Randy Kincaid, along with her son, Dustin Morgan, were also convicted and previously sentenced. Kincaid’s daughter, Wendi Henry, was convicted and is in custody awaiting sentencing.
These charges and subsequent conviction of Kincaid and co-defendants resulted from a lengthy investigation by the Internal Revenue Service – Criminal Investigation, Fifth Judicial Drug Task Force, and Drug Enforcement Administration. The pain clinic ceased operations when it was raided by federal and local law enforcement agents in December 2010, where agents seized significant quantities of prescription narcotic pain pills, firearms, and nearly $700,000 in cash.
“The Federal Sentencing Guidelines provide suggested ranges of incarceration for those who are found guilty of violating federal law, including the most serious offenders. Kincaid disbursed highly addictive drugs to many people over a long period of time. Thanks to the intense and cooperative work of the federal, state and local agencies who investigated this case, she received a lengthy sentence for her criminal conduct,” said U.S. Attorney Bill Killian.
Assistant U.S. Attorneys Jennifer Kolman and Frank M. Dale, Jr. represented the United States during the trial and sentencing.
Picayune Woman Sentenced to Twenty One Months in Prison for Social Security FraudRead the Press Release
Gulfport, Miss. – Virginia Ann Edelman a/k/a Ginger Edelman, 49, of Picayune, Mississippi, was sentenced by U.S. District Judge Sul Ozerden to 21 months in federal prison followed by three years of supervised release for theft of government funds, U.S. Attorney Gregory K. Davis announced today. She was also ordered to pay $75,325.00 in restitution to the U. S. Social Security Administration and to perform 120 hours of community service.
In May, 2014, a jury found Edelman guilty of stealing $75,325.00 of her deceased mother’s Social Security Survivor’s Insurance Benefits Program (“SIB”) benefit payments. The investigation revealed the theft occurred from May of 2000 through October of 2011.
This case was investigated by agents of the Social Security Administration Office of the Inspector General - Office of Investigations. It was prosecuted by Assistant U.S. Attorney Andrea Jones.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Philadelphia Resident Charged with Illegal ReentryRead the Press Release
Jose Guadalupe Pacheco-Ramirez, a/k/a “Jose Ramirez,” 39, of Philadelphia, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about July 21, 2014, Pacheco-Ramirez, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about May 24, 2005 and August 24, 2010.
If convicted the defendant faces a maximum possible sentence of 10 years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Andrea Foulkes.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Click here to view the indictment.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Owner of Financial Services Company Pleads Guilty to Securities and Tax FraudRead the Press Release
BOSTON – The former owner of a Lawrence-based financial services company pleaded guilty today to charges that he defrauded investors, filed false tax returns on behalf of certain clients, and then filed his own false tax returns.
Robert Burton, 37, the former Managing Director of Pinnacle Financial Consulting LLC, Pinnacle Strategic Investments LLC, and the Pinnacle Asset and Capital Management Group LLC, pleaded guilty before U.S. District Court Judge Mark L. Wolf to securities fraud and tax fraud. Sentencing is scheduled for Nov.13, 2014 at 3:00 pm.
Burton acted as an investment advisor and promised to invest some clients’ money in various securities, including stocks, mutual funds, and in a debt portfolio allegedly managed by Pinnacle. In some instances, he promised to return the principal invested within approximately 30 days, along with an interest payment equal to 100% of the amount invested. Burton did not invest the money as promised, did not make the promised payments and, in some instances, provided investors with checks that ultimately bounced.
Through Pinnacle, Burton also provided tax preparation services and, in at least two instances, prepared and filed false tax returns on behalf of his clients. Finally, although Burton derived substantial income through the operation of Pinnacle, he failed to identify that income on his own tax returns and admitted to filing false tax returns for the 2008, 2009, 2010 and 2011 tax years.
If the plea agreement is accepted by the Court, Burton will be sentenced to no more than two years in prison and not less than 12 months confinement, three years of supervised release, and restitution to the victims.United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and William P. Offord, Special Agent in Charge of the U.S. Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The Massachusetts Attorney General’s Office, which has a civil case pending against Burton, cooperated with the investigation. The case is being prosecuted by Assistant U.S. Attorney Sarah E. Walters of Ortiz’s Economic Crimes Unit.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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Owner of Connecticut Financial Services Company Pleads Guilty to Making False Statements Regarding Military Pension BenefitsRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced today that Richard A. Ullmann, age 50, of Westport, Connecticut, pleaded guilty to making false statements to the Defense Finance Accounting Service (DFAS) in federal court in Harrisburg before Chief United States District Court Judge Christopher C. Conner. Ullmann faces up to five years' imprisonment and/or $250,000 in fines as a result of the guilty plea. Ullmann was released pending sentencing, which is scheduled for November 28, 2014.
According to U.S. Attorney Peter Smith, Ullmann owned and operated a financial services company based in Westport, Connecticut, called Donnell Financial Group (Donnell), that made short-term loans to members of the U.S. Armed Forces, military retirees and their survivors, and others. In exchange for the loans, Donnell's customers assigned their future pension payments to Mr. Ullmann as collateral. Federal law prohibits the assignment of pension benefits as collateral for members of the armed forces and military retirees. DFAS also prohibits anyone but the account holder to make changes to their account, including where the payments shall be deposited and who should receive the funds.
In March 2009, DFAS warned Mr. Ullmann that his practice of impersonating the account holder in order to direct payments into bank accounts he controlled could subject him to prosecution. Ullmann admitted today that despite that warning, he continued to impersonate numerous individuals and direct their pension payments into bank accounts he controlled until February 2014, when federal agents executed a search warrant at Donnell.
The case was investigated by the Department of Defense, Office of Inspector General, and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
****Oregon Couple Indicted for Trafficking Methamphetamine and CocaineRead the Press Release
FRESNO, Calif. — Lucio Cruz-Sanchez, 35, resident of Portland, Oregon and his wife Jamie Lyne Sanchez 23, of Gresham, Oregon, were charged today with conspiracy to distribute and possession with intent to distribute methamphetamine and cocaine and with possession with intent to distribute methamphetamine and cocaine, United States Attorney Benjamin B. Wagner announced.
The defendants were arrested on August 7, 2014, by a California Highway Patrol officer on northbound I-5 near the Buttonwillow exit. They possessed over 40 pounds of methamphetamine and over two pounds of cocaine and $2,233 cash.
This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Lucio Cruz-Sanchez faces a sentence of 10 years to life in prison, and Jamie Lyne Sanchez faces a sentence of five to 40 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.