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6 October 2014
Florida Woman Pleads Guilty to ParticipatngRead the Press Release
IN NASHUA-BASED NATIONWIDE TAX RETURN SCAMCONCORD, NEW HAMPSHIRE – Ann Marie Howard Aguiar, 47, of Jacksonville, Florida, has pleaded guilty in United States District Court for the District of New Hampshire to one count of conspiracy to commit wire fraud in connection with a nationwide tax refund scheme, announced United States Attorney John P. Kacavas.
Aguiar admitted that she participated in a scheme, organized by former Nashua resident Craig S. Cudhea, to file a large number of false tax returns claiming refunds to which the persons in whose names the returns were filed were not entitled. The scheme, based in Nashua, resulted in the filing of thousands of false claims for tax refunds from the Internal Revenue Service.
Cudhea recruited a nationwide network of pastors to solicit members of their congregations to provide their names and social security numbers on the false pretense that the information would be used to secure stimulus funds that they claimed the government was giving to the poor, disabled and unemployed. The pastors led churches in Virginia, Georgia, New York, Texas, South Carolina, Arkansas, Ohio and Nevada. Many congregants at these churches, consisting mostly of low income individuals with limited experience with the IRS, provided their personal identifying information and the pastors forwarded that information to Cudhea.
Cudhea then transmitted the personal identifying information to approximately eight women around the country who he had recruited via the internet to enter the information on electronic tax returns. Cudhea dubbed this group of women his “Angels,” and Aguiar was one of Cudhea’s Angels. Cudhea instructed Aguiar and the other Angels to report certain information on the falsified tax returns, including specific income amounts, withholding, and expenses such as education and child care that would generate credits and refunds. The information reported was always very similar and often identical.Although Aguiar was aware that the financial information she reported was false, she prepared and electronically filed the tax returns with the IRS. Cudhea and his Angels filed more than 5000 false tax returns seeking refunds of approximately $9.4 million. Cudhea paid Aguiar a flat fee for each false return that she prepared that was accepted for processing by the IRS. Cudhea directed the IRS to pay portions of each refund to himself, the pastor who provided the personal identifying information, and sometimes the person in whose name the return was filed. The scheme induced the IRS to pay more than $4 million in false refund claims before it became aware of the fraudulent nature of the claims.
United States Attorney John P. Kacavas said, “Prosecuting cases of financial fraud, particularly cases in which the American taxpayer is the victim, is an essential mission of my office. We will continue to work with our law enforcement partners to identify and prosecute fraudsters and restore stolen monies to the public fisc.”
Aguiar faces a maximum term of imprisonment of five years and maximum fine of $250,000. She is scheduled to be sentenced on January 16, 2015.
Cudhea, who was charged with conspiracy, wire fraud and other crimes in connection with the scheme, committed suicide after learning that he was being prosecuted. The charges against him have been dismissed.
This case was investigated by the Manchester field office of the IRS’s Criminal Investigation division. The case is being prosecuted by Assistant U.S. Attorney Bill Morse.
Farmington, Missouri Pharmacist Indicted on Federal Fraud ChargesRead the Press Release
St. Louis, MO – PATRICIA HOEHN allegedly wrote prescriptions for hydrocodone for three different people representing that they were prescribed by a licensed medical doctor. She is also charged with attempting to destroy her cellular telephone so that investigators could not find information about her diversion of these controlled substances.
Hoehn, Farmington, MO, was indicted by a federal grand jury on three felony counts of obtaining a controlled substance by forgery, three felony counts of making false statements relating to a health care matter, one felony count of fraud with identification documents and one felony count of attempting to destroy a cellular telephone to impair official proceeding. She is expected to appear in federal court today.
If convicted, these charges carry penalties ranging from 4 to 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Missouri State Highway Patrol, the Drug Enforcement Administration and Health & Human Services Office of Inspector General.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
FBI Arrests Suburban Chicago Man for Allegedly Attempting to Support Terrorism OverseasRead the Press Release
A southwest suburban Bolingbrook man was arrested Saturday night for allegedly attempting to travel overseas to join a foreign terrorist organization operating inside Iraq and Syria, federal law enforcement officials announced today. The defendant, Mohammed Hamzah Khan, 19, a U.S. citizen, was charged with attempting to join the Islamic State of Iraq and the Levant (ISIL), also known as the Islamic State of Iraq and Syria (ISIS).
Khan was taken into custody without incident at O’Hare International Airport by members of the Chicago FBI’s Joint Terrorism Task Force before he attempted to fly to Vienna, Austria, on his way to Istanbul, Turkey.
Khan was charged in a criminal complaint filed today in U.S. District Court with one count of attempting to provide material support to a foreign terrorist organization. He appeared this morning in U.S. District Court before U.S. Magistrate Judge Susan Cox, and remains in federal custody pending a detention hearing at 10:30 a.m. Thursday.
According to the complaint affidavit, a roundtrip ticket was purchased for Khan on Sept. 26 to travel from Chicago to Istanbul, departing on Saturday, and returning later this week.
Law enforcement agents observed Khan passing through the security screening checkpoint Saturday afternoon at O’Hare’s international terminal. Federal agents then executed a search warrant at Khan’s residence and recovered multiple handwritten documents that appeared to be drafted by Khan and/or others, which expressed support for ISIL, the affidavit alleges. Some of those documents, including travel plans and materials referencing ISIL and jihad, are described in the complaint affidavit.
Khan was initially approached by U.S. Customs and Border Protection officers and was later interviewed later by FBI agents at the airport.
Attempting to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The JTTF is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. The Justice Department’s National Security Division assisted in the investigation. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Illinois State Police also provided significant assistance.
The arrest and complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation is continuing, they said.
The government is being represented by Assistant U.S. Attorneys Matthew Hiller and Angel Krull.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
FBI Arrests Suburban Chicago Man for Allegedly Attempting to Support Terrorism OverseasRead the Press Release
CHICAGO — A southwest suburban Bolingbrook man was arrested Saturday night for allegedly attempting to travel overseas to join a foreign terrorist organization operating inside Iraq and Syria, federal law enforcement officials announced today. The defendant, MOHAMMED HAMZAH KHAN, 19, a U.S. citizen, was charged with attempting to join the Islamic State of Iraq and the Levant (ISIL), also known as the Islamic State of Iraq and Syria (ISIS).
Khan was taken into custody without incident at O’Hare International Airport by members of the Chicago FBI’s Joint Terrorism Task Force before he attempted to fly to Vienna, Austria, on his way to Istanbul, Turkey.
Khan was charged in a criminal complaint filed today in U.S. District Court with one count of attempting to provide material support to a foreign terrorist organization. He appeared this morning in U.S. District Court before U.S. Magistrate Judge Susan Cox, and remains in federal custody pending a detention hearing at 10:30 a.m. Thursday.
According to the complaint affidavit, a roundtrip ticket was purchased for Khan on Sep. 26 to travel from Chicago to Istanbul, departing on Saturday, and returning later this week.
Law enforcement agents observed Khan passing through the security screening checkpoint Saturday afternoon at O’Hare’s international terminal. Federal agents then executed a search warrant at Khan’s residence and recovered multiple handwritten documents that appeared to be drafted by Khan and/or others, which expressed support for ISIL, the affidavit alleges. Some of those documents, including travel plans and materials referencing ISIL and jihad, are described in the complaint affidavit.
Khan was initially approached by U.S. Customs and Border Protection officers and was later interviewed later by FBI agents at the airport.
Attempting to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The JTTF is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies. The Justice Department’s National Security Division assisted in the investigation. U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Illinois State Police also provided significant assistance.
The arrest and complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation is continuing, they said.
The government is being represented by Assistant U.S. Attorneys Matthew Hiller and Angel Krull.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Edmonds Man who Operated Illegal Money Transmitting Business Sentenced to Two Years in PrisonRead the Press Release
A 55-year-old Edmonds, Washington man who moved more than $150 million from overseas sources, through his U.S. bank accounts, and then back overseas, was sentenced today in U.S. District Court in Seattle to two years in prison, announced Acting U.S. Attorney Annette L. Hayes. PAVEL ROMBAKH, who immigrated to the U.S. from Ukraine in the 1990’s, pleaded guilty to operating an unlicensed money transmitting business in May 2014. As part of his plea, he forfeited to the government cash and property worth $510,000. At sentencing, U.S. District Court Judge James L. Robart stated, “He moved a staggering $150 million…. The money came out of Russia and Cyprus, into the U.S. and was wired out to Latvia, the United Arab Emirates and China. That makes this a serious offense.”
According to records filed in the case, over a five year period, ROMBAKH received wires of more than $150 million from overseas and then wired the funds back out to other accounts. Many of the wires originated in Russia and Cyprus and were promptly re-wired to England, Latvia, the United Arab Emirates, and China. ROMBAKH kept a small percentage of the funds as his fee. Investigators were not able to determine the source of the funds, nor what they were used for overseas. Defense attorneys claimed some of the money went to a mining company in Mongolia, but no evidence corroborating this claim was found in the investigation.
“IRS Criminal Investigation is committed to ensuring the integrity of our nation's banking system,” stated Special Agent in Charge Teri Alexander. “Financial Institutions are regulated by federal law. Rombakh attempted to circumvent that law by acting like a bank but without the necessary oversight that protects our overall financial system.”
The case was investigated by IRS-CI and was prosecuted by Assistant United States Attorneys Thomas Woods and Francis Franze-Nakamura.Drug Trafficker from Belize Was "Popeye" on the Streets of Overland ParkRead the Press Release
KANSAS CITY, KAN. - A man from Belize who used the alias “Popeye” to peddle methamphetamine on the streets of Overland Park was sentenced Monday to nine years in federal prison, U.S. Attorney Barry Grissom said.
John Michael Hernandez, 41, pleaded guilty to one count of distributing methamphetamine and one count of unlawfully re-entering the United States after being convicted of an aggravated felony and deported. In his plea, he admitted he was using the alias “Popeye” in December 2013 when he began selling methamphetamine to undercover investigators working with the Kansas Bureau of Investigation. In a series of transactions, he sold them more than a pound of methamphetamine.
After he was arrested, Homeland Security Investigations used the Automated Biometric Identification System (IDENT) and the integrated Automated Fingerpring System (AFIS) to determine Hernandez had previously been convicted of robbery in Los Angeles and deported from the United States to Belize in 2009.
Grissom commended the Kansas Bureau of Investigation, Homeland Security Investigations and Assistant U.S. Attorney Sheri McCracken for their work on the case.Detroit Men Sentenced to Federal Prison for Large-scale Heroin Distribution in HuntingtonRead the Press Release
HUNTINGTON, W.Va. – Two Detroit man were sentenced today for their roles in a conspiracy to distribute heroin in Huntington in 2013 and 2014, announced U.S. Attorney Booth Goodwin. Christopher Lamarr-Shawn Harris, also known as “C” and “Caesar,” 28, who previously pleaded guilty in July of 2014 to conspiring to distribute a kilogram or more of heroin, was sentenced to 12 years and three months in federal prison. Denzell Lamar Bunkley, also known as “Chotty” and “King,” 22, who also pleaded guilty in July of 2014 to possession with intent to distribute 100 grams or more of heroin, was sentenced to three years and one month.
From at least the summer of 2013 to April 2, 2014, Harris led a conspiracy with Bunkley and others, including Steven Edward Lewis, Jakaiser Wesley Jackson, and Brandon S. Keaton, to distribute heroin, primarily in West Huntington. Harris recruited co-conspirators and frequently arranged for the transportation of heroin from Detroit, Michigan, to Huntington. Harris used multiple locations to store, prepare and distribute heroin, including the Red Roof Inn Hotel located on Route 60 in Huntington and an apartment located at 1416 Jefferson Avenue in West Huntington. In addition to Bunkley, Jackson, and Keaton, Harris also recruited local residents to assist with drug distribution.
On December 31, 2013, officers with the Huntington Police Department’s Special Investigations Unit executed a search warrant at the Jefferson Avenue apartment. Officers seized approximately 413 grams of heroin and $12,349 in cash during the search. Officers also arrested Harris, Bunkley, and Lewis who were located inside the apartment.
Harris was again arrested on February 20, 2014, in Ohio by the Ohio State Highway Patrol while travelling from Huntington to Detroit. During his arrest, officers seized a total of $24,930 in cash from Harris.
Harris was arrested for a third time on April 2, 2014, after officers received information that he was again present at the Red Roof Inn in Huntington distributing heroin. Officers searched two rooms at the hotel and seized approximately 192 grams of heroin along with $3,000 in cash. Harris, along with Jackson, had arranged to transport the heroin from Detroit to Huntington days prior to the search.During today’s hearing, the Court found Harris responsible for arranging the distribution of over one kilogram of heroin, primarily in West Huntington, during the conspiracy. The Court also found that Harris served as a manager and organizer of the conspiracy and that he maintained a residence in West Huntington for the purpose of distributing heroin.
The Huntington Police Department Special Investigations Unit, the West Virginia State Police, the United States Drug Enforcement Administration, and the United States Marshals Service all participated in the investigation. Assistant United States Attorney Joseph F. Adams handled the prosecution.
This case was brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of heroin and prescription drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiates and heroin in communities across the Southern District.
Dayton Man Sentenced to 240 Months for Distributing Child PornographyRead the Press Release
DAYTON, OHIO – Eugene Roberts, 59, of Dayton, Ohio was sentenced in U.S. District Court to 240 months in prison and lifetime supervision for distributing child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) and Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, investigators discovered Roberts was sharing sexually explicit images of minors. Specifically, the defendant sent approximately 170 email messages including child pornography to at least 20 other individuals. The recipients of his emails then typically sent child pornography to Roberts in return.
In total, investigators discovered 5,578 images of child pornography from Roberts’ computer; 11 of these images depicted bondage and two depicted bestiality. In addition, they discovered 797 videos, two videos depicting bondage and five videos depicting bestiality.
Roberts was arrested on April 3, 2014 and has remained in custody since. He pleaded guilty on July 2, 2014 to distribution of child pornography.This case was brought 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 marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the cooperative investigation by the FBI and HSI, as well as Assistant United States Attorneys Brent Tabacchi and Benjamin Glassman, who represented the United States in this case.Costa Rican Woman Pleads Guilty to Human Smuggling ConspiracyRead the Press Release
A citizen and resident of Costa Rica pleaded guilty today to conspiracy to smuggle more than 25 undocumented immigrants to the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ (HSI) Washington, D.C., Field Office made the announcement.
Mercedes Morera Roche, 49, was extradited to the United States from Panama on Aug. 21, 2014, to face charges for smuggling more than 25 undocumented immigrants from Cuba to the United States.
According to her plea agreement, Roche admitted that between 2004 and 2011, she was an organizer of a human smuggling network that provided instructions, fraudulent identity and travel documents, escorts, transport, safe house locations, and other assistance to facilitate the illicit travel of undocumented immigrants to the United States. Roche admitted that in some cases, she provided fraudulent passports so that undocumented immigrants could fly to the United States with the help of corrupt foreign airline and immigration officials. Roche directed the immigrants to destroy the fraudulent documents during the flights before landing at United States airports and instructed the immigrants about engaging with authorities at the airports. In other cases, Roche coordinated the smuggling of undocumented immigrants via land through Latin America and Mexico into the United States. Roche solicited payments of up to $10,000 for each undocumented immigrant.
Roche’s sentencing is scheduled on Dec. 11, 2014, before U.S. District Court Judge Ursula M. Ungaro of the Southern District of Florida.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The investigation was conducted by HSI’s Washington, D.C. Field Office with support from the Human Smuggling Trafficking Center and U.S. Customs and Border Protection’s National Targeting Center. Critical assistance was also provided by HSI’s Miami Field Office and the ICE Attaché Office in Panama. Extradition assistance was provided by the Criminal Division’s Office of International Affairs, Interpol Washington and the United States Marshals Service. The Justice Department is grateful for the significant assistance provided by the Panamanian Ministry of Foreign Affairs. This case is being prosecuted by Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Robert Emery of the Southern District of Florida.
Costa Rican Woman Pleads Guilty to Human Smuggling ConspiracyRead the Press Release
A citizen and resident of Costa Rica pleaded guilty today to conspiracy to smuggle more than 25 undocumented immigrants to the United States.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ (HSI) Washington, D.C., Field Office made the announcement.
Mercedes Morera Roche, 49, was extradited to the United States from Panama on Aug. 21, 2014, to face charges for smuggling more than 25 undocumented immigrants from Cuba to the United States.
According to her plea agreement, Roche admitted that between 2004 and 2011, she was an organizer of a human smuggling network that provided instructions, fraudulent identity and travel documents, escorts, transport, safe house locations, and other assistance to facilitate the illicit travel of undocumented immigrants to the United States. Roche admitted that in some cases, she provided fraudulent passports so that undocumented immigrants could fly to the United States with the help of corrupt foreign airline and immigration officials. Roche directed the immigrants to destroy the fraudulent documents during the flights before landing at United States airports and instructed the immigrants about engaging with authorities at the airports. In other cases, Roche coordinated the smuggling of undocumented immigrants via land through Latin America and Mexico into the United States. Roche solicited payments of up to $10,000 for each undocumented immigrant.
Roche’s sentencing is scheduled on Dec. 11, 2014, before U.S. District Court Judge Ursula M. Ungaro of the Southern District of Florida.
The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
The investigation was conducted by HSI’s Washington, D.C. Field Office with support from the Human Smuggling Trafficking Center and U.S. Customs and Border Protection’s National Targeting Center. Critical assistance was also provided by HSI’s Miami Field Office and the ICE Attaché Office in Panama. Extradition assistance was provided by the Criminal Division’s Office of International Affairs, Interpol Washington and the United States Marshals Service. The Justice Department is grateful for the significant assistance provided by the Panamanian Ministry of Foreign Affairs. This case is being prosecuted by Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Robert Emery of the Southern District of Florida.
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.
Clearwater Man Pleads Guilty to Sex Trafficking ChargeRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Gerald Eugene Mayham (41, Clearwater) pleaded guilty today to sex trafficking a child. He faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for January 7, 2015. Mayham was indicted on May 29, 2014.
In June and July 2013, Mayham conspired with Joel Raymond Nauta to cause a 16-year-old girl to engage in commercial sex acts. Mayham, who knew that the victim was a minor, arranged the sex acts by soliciting men at various locations in Clearwater and Dunedin. To get the victim to comply with the scheme, Mayham threatened her and provided her with drugs. Mayham received the money from the sex acts, which he used to purchase drugs.
On April 29, 2014, Nauta pleaded guilty to his role in the conspiracy. He will be sentenced on December 17, 2014.
This case was investigated by the Federal Bureau of Investigation, the Clearwater Police Department, the St. Petersburg Police Department, and the Largo Police Department. It is being prosecuted by Assistant United States Attorneys Joseph W. Swanson and Simon A. Gaugush.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Clearfield Woman Participated in Fictitious Income Tax Refund SchemeRead the Press Release
JOHNSTOWN, Pa. - A resident of Clearfield, Pa., pleaded guilty in federal court to a charge of conspiracy to defraud the government, United States Attorney David J. Hickton announced today.
Juanitha Leach-Anderson, 36, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from March 2007 to August 23, 2008, Leach-Anderson conspired with another to defraud the Internal Revenue Service, an agency of the United States Department of Treasury, by obtaining and aiding to obtain payment or allowance of false, fictitious and fraudulent claims against the United States. Leach-Anderson and another person prepared or caused to be prepared and filed approximately 111 false, fictitious and fraudulent federal income tax returns wherein they claimed tax refunds totaling approximately $190,279.
Judge Gibson scheduled sentencing for Feb. 24, 2014, at 10 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Internal Revenue Service Criminal Investigation conducted the investigation that led to the prosecution of Leach-Anderson.
Chester County Man Admits to Explosives, Fraud, and Weapons OffensesRead the Press Release
PHILADELPHIA - Istvan Merchenthaler, 44, of Downingtown, Pennsylvania, pleaded guilty today to all counts in four pending indictments charging him with wire fraud, possession of destructive devices, and related offenses, announced United States Attorney Zane David Memeger. Merchenthaler has been in federal custody since February 16, 2013. All of the indictments have been consolidated before United States District Judge Robert F. Kelly. A sentencing hearing is expected to be scheduled for January 2015.
Merchenthaler pleaded guilty to four counts of wire fraud, two counts of aggravated identity theft, four counts of money laundering, two counts of filing false tax returns, and two counts of interstate transportation of stolen goods, as charged by the federal grand jury in this District. Specifically, from about May 2006 to February 2013, Merchenthaler claimed to be the founder of PhoneCard USA, a company that was purportedly a “premier distribution source” for prepaid phone cards and cell phones. In reality, Merchenthaler operated a “Ponzi” scheme, stealing over $2 million from over 200 investors and using much of these funds for his own benefit and to perpetuate his scheme. In his scheme, Merchenthaler falsely claimed that PhoneCard USA had “lucrative contracts” with major retail chain stores including Walmart, 7-Eleven, and BJ’s Wholesale Club. Further, Merchenthaler falsely claimed to have friendships with executives at Walmart and 7-Eleven and used their names in a fraudulent e-mail address and bogus contracts.
Merchenthaler also pleaded guilty to one count of possession of unregistered destructive devices and one count of being a fugitive in possession of a firearm and ammunition, as charged by the federal grand jury in this District. Specifically, while he was a fugitive from justice in this District, Merchenthaler possessed approximately 460 improvised explosive devices (“IEDs”), a firearm, and ammunition.
In addition, Merchenthaler also pleaded guilty to two counts of being a fugitive in possession of firearms and ammunition and one count of possession of an unregistered destructive device, as charged by the federal grand jury in the Eastern District of North Carolina. Specifically, while he was a fugitive from justice, Merchenthaler possessed approximately 39 IEDs, a firearm, and 580 rounds of ammunition in the Wilmington, North Carolina area.
Moreover, Merchenthaler pleaded guilty to one count of being a fugitive in possession of firearms and ammunition, one count of possession of an unregistered destructive device, and one count of possession of an illegally manufactured firearm, as charged by the federal grand jury in the District of Maryland. Specifically, while he was a fugitive from justice, Merchenthaler possessed approximately 135 IEDs, 15 firearms, and 11,000 rounds of ammunition in the Rising Sun, Maryland area.
At sentencing, Merchnthaler faces a mandatory minimum of two years in prison with a maximum possible statutory sentence of 230 years, a three year period of supervised release, a fine of up to $5.5 million fine, and a $2,200 special assessment. Restitution and forfeiture may also be ordered.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, the Philadelphia Police Bomb Disposal Unit, the Montgomery County Bomb Squad, the Montgomery County Sheriff’s Office, the East Whiteland Police Department, the East Whiteland Fire Department, the Malvern Fire Department, the Chester County District Attorney’s Office, the Maryland State Police, and the North Carolina State Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Vineet Gauri.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Chemical Company Fined, Placed on Probation for Violating Clean Air ActRead the Press Release
PROVIDENCE, R.I. – Roberts Chemical Company, Inc. of Attleboro, Mass., was fined $200,000 and placed on probation for five years today by U.S. District Court Judge John J. McConnell, Jr., for violating the Clean Air Act. The company failed to develop and implement a Risk Management Plan (RMP) to minimize the chance of release of ethyl ether from its former Pawtucket, R.I., facility, and to protect workers, the community and emergency and first responders in the event of a release or fire involving ethyl ether. EPA regulations require a company’s RMP to include a “worst case” response plan.
Roberts Chemical Company, Inc. is in the business of storing, distributing and repackaging chemicals, some of which are designated as extremely hazardous. The company pleaded guilty in August 2014 to violating the Clean Air Act.
The sentence is announced by United States Attorney Peter F. Neronha; John Gauthier, Acting Special Agent in charge of EPA's criminal program in Rhode Island; and Bruce Foucart, Special Agent in charge of HSI Boston
"Protecting communities from hazardous chemical releases is a priority for EPA" said John Gauthier, Acting Special Agent in charge of EPA's criminal program in Rhode Island. "Today's sentence emphasizes the importance of having a Risk Management Plan (RMP). If handled or stored improperly, flammable liquids can injure or even kill. With an RMP in place, workers and emergency responders are better prepared to deal with a chemical accident."
Ethyl ether is a volatile, extremely flammable liquid chemical. EPA regulations require facilities storing more than 10,000 lbs. of ethyl ether to develop and implement a RMP. An investigation by EPA determined that in November and December 2008, Roberts Chemical Company, Inc. failed to develop and implement a RMP while storing 27,467 lbs. of ethyl ether at their former facility at 258 Pine Street in Pawtucket.“We will continue to vigorously investigate those who are determined to line their pockets with the proceeds of crimes against the environment," said Bruce Foucart, special agent in charge of HSI Boston. "The willful falsification of EPA reports and DHS vulnerability assessments posed a triple threat to the national security, public safety, and economic well-being of the State of Rhode Island.”
In addition to paying a $200,000 fine and serving a term of 5 years probation, Roberts Chemical Company, Inc. is required to issue a public apology.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
This case was investigated by the U.S. EPA Criminal Investigation Division and Homeland Security Investigations, with the assistance of the REFP Unit of the Office of Environmental Stewardship with EPA's Region 1 office.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Centennial Man Sentenced to 6 Years in Prison for Mortgage Fraud SchemeRead the Press Release
DENVER – Chaval Williams, age 53, of Centennial, CO, was sentenced last week by U.S. District Court Judge William J. Martinez to serve 74 months in federal prison for wire fraud, identity theft and money laundering federal authorities announced. Following his prison sentence, Williams was ordered to serve 3 years on supervised release. Williams was also ordered by Judge Martinez to pay $766,800.81 in restitution. He was ordered to report to a Bureau of Prisons facility once one is designated. Williams was indicted by a federal grand jury in Denver on June 8, 2011 and pled guilty on May 29, 2013.
According to the indictment and plea agreement, from March 2005, through December 2006, Williams conducted business in the State of Colorado through his company "TCW of Denver, Inc.", during which time he arranged for or assisted buyers to obtain loans for the purchase of homes. He held himself out to others as a real estate investor, involved in the purchase and sale of residential real estate for investment purposes.
Williams with the assistance of others devised a scheme to defraud real estate lenders, particularly by fraudulently securing real estate financing for the purchase of properties, typically through the use of nominee (or "straw") home buyers. Williams informed some of the buyers that they were making a legitimate real estate purchase for investment purposes. In some instances, he made certain buyers aware in the course of assisting them obtain a home loan based on false representations to the lender. In several instances, Williams along with others used the stolen identity and good credit history of two particular individuals.
Williams sometimes provided false information to lenders including proof of employment such as pay stubs or wage and tax statements, bank statements, verifications of employment, rent or deposit, letters of explanation related to buyers' credit history, affidavits of intent to occupy the purchased residence and identification documents.
Furthermore, Williams sometimes caused or assisted in causing lenders to provide a significant portion of lender funds directly to himself or his company TCW of Denver. To make these payments appear legitimate, he sometimes caused false and fictitious promissory notes, payoff statements, or other documents to be presented in connection with the closing of the property. He arranged for home buyers to receive kickbacks as payment for their role in purchasing a home. Williams on several occasions purchased and then resold a home to a buyer within the same day, collecting a substantial profit from the resale and would conceal from the lender the resale of the property. The total loss amount Williams caused to the functional institutions was over 2.4 million dollars.
“The significant prison sentence pronounced in this case is appropriate given the defendant’s criminal conduct,” said U.S. Attorney John Walsh. “Mortgage fraud schemes, like the one Williams implemented, not only adversely impact the housing market, they also hurt our entire economy.”
"This is a simple case of pure greed" said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. "This is evident by the fact that Williams concealed from lenders the purchase and reselling of homes within the same day."
“Identifying and investigating this fraud was only possible through the collaborative effort of several law enforcement agencies and the United States Attorney’s Office,” stated FBI Denver Special Agent in Charge Thomas Ravenelle. “We are confident this sentence will deter Williams and others from manipulating home buyers and financial institutions in the future.”
This case was investigated by IRS Criminal Investigation, the Federal Bureau of Investigation and the United States Secret Service.
The defendant is being prosecuted by Assistant U.S. Attorney Tiff Neff.
Cedar Rapids Man and Woman Plead Guilty to Robbery and Firearm ChargesRead the Press Release
A man who committed four bank robberies and a woman who drove the getaway vehicle for one robbery pled guilty in federal court in Cedar Rapids.
Javon Dockery, age 29, from Cedar Rapids, was convicted of four counts of bank robbery and one count of possession of a firearm in furtherance of a crime of violence. Bria Daudinot, age 21, from Cedar Rapids, was convicted of one count of bank robbery.
At a plea hearing on October 2, 2014, Dockery admitted that he robbed a Cedar Rapids branch of the US Bank on April 30 and June 26, 2014. He also admitted that he robbed a Cedar Rapids branch of the Guaranty Bank on May 16 and May 29, 2014. Further, Dockery admitted that, during the commission of the June 26 robbery, he brandished a firearm. At a plea hearing today, Daudinot admitted that she aided and abetted Dockery in the June 26 robbery. In a plea agreement, Daudinot admitted that she drove the getaway vehicle for this robbery.
Sentencings before United States District Court Chief Judge Linda R. Reade will be set after presentence reports are prepared. Both Dockery and Daudinot remain in custody of the United States Marshal pending sentencing. Dockery faces a mandatory minimum sentence of 7 years’ imprisonment and a possible maximum sentence of life in prison, a $1,250,000 fine, a $500 special assessment, and up to 5 years on supervised release following any imprisonment. Daudinot faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and up to 3 years on supervised release following any imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-68.
- California Man Appears in Houston on Fraud Charges
California Drug Dealer Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
CHARLESTON, W.Va. – A California man who distributed heroin, methamphetamine, and oxycodone in Charleston and Summersville, West Virginia in 2012 and 2013 was sentenced today to 15 years and eight months in federal prison, U.S. Attorney Booth Goodwin announced. Donnell Dwayne Diego, 34, of San Diego, California previously pleaded guilty in April of 2014, to conspiracy to distribute methamphetamine. The guilty plea resolved Diego’s involvement in three separate investigations conducted by task force agents in Kanawha and Nicholas counties.
On October 11, 2012 officers from the Metropolitan Drug Enforcement Network Team (MDENT) searched Diego’s Central Avenue residence in Charleston and seized two loaded semiautomatic pistols, crack cocaine, and oxycodone tablets. Diego posted bond in Kanawha County Magistrate Court after his arrest and was released from custody. In June and July of 2013, MDENT officers used an informant to make three undercover purchases of methamphetamine from Diego. On July 11, 2013, police executed a search warrant at Diego’s residence and seized more than 50 grams of methamphetamine, more than 50 grams of heroin, and almost $10,000. Diego agreed to speak with police and admitted bringing heroin and methamphetamine from San Diego, California to distribute in West Virginia. Diego posted bond in Kanawha County Magistrate Court after his arrest and was, again, released from custody.
In October of 2013, a federal indictment was returned against Diego charging him with drug and firearm offenses arising from the October 2012 arrest. On November 5, 2013, members of the San Diego County Integrated Narcotic Task Force working drug interdiction in the San Diego, California International Airport seized more than $22,000 from Diego’s carry-on luggage. They were not aware of the federal indictment and did not arrest Diego.
In October and November of 2013, Diego was living at a residence on Scenic Highway near Summersville, West Virginia. Members of the Central West Virginia Drug Task Force (CWVDTF) used an informant to purchase heroin and methamphetamine on several occasions from a man living with Diego. On November 18, 2013, task force agents from both MDENT and CWVDTF executed a search warrant at Diego’s residence. Among other items, police seized more than 30 grams of methamphetamine, approximately 10 grams of heroin, fifteen firearms, and more than $16,000. Diego was not home at the time of the search but drove by the residence while police were there. He refused a Nicholas County Deputy’s command to stop and led police on a vehicle chase several miles along Scenic Highway. The chase came to an end when members of the tactical entry team, who had already cleared the scene of the search warrant, disabled
Diego’s vehicle by shooting out its tires after he drove around their roadblock.
Diego has previously been convicted of several felony offenses in California including burglary and grand theft in 2003 and distribution of drugs in 2004 and 2007.MDENT and CWVDTF conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Brother and Sister, One Other Person, Convicted at Trial in $15 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A federal jury convicted a brother and sister and one other person today for conspiring to defraud financial institutions as part of a $15 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos, U.S. Attorney Paul J. Fishman announced.
The jury returned the guilty verdicts after five hours of deliberation following a four-week trial before U.S. District Judge Jerome B. Simandle in Camden federal court. Nancy Wolf-Fels, 57, of Toms River, New Jersey; Dwayne Onque, 46, of Belleville, New Jersey; and Mashon Onque, 43, of East Orange, New Jersey, were each convicted of one count of conspiracy to commit wire fraud. Dwayne Onque was also convicted of one count of conspiracy to commit money laundering.
According to the documents filed in this case and the evidence at trial:
The defendants and their conspirators schemed to defraud financial institutions by locating oceanfront condominiums overbuilt by financially distressed developers and negotiating a buyout price with the sellers. They then caused the sales prices for the properties – located in Wildwood Crest and North Wildwood, New Jersey, other locations in New Jersey and in Naples, Florida – to be much higher than the buyout price to ensure large proceeds. Other defendants helped conceal the true sales prices of certain properties through inflated sales contracts and finder’s fee agreements.
From 2007 through mid-2008, Wolf-Fels served as a loan officer at the Forked River Branch of the mortgage company, Mortgage Now. She and her conspirators originated six loan applications for unqualified buyers that contained false and fraudulent information. Working with her conspirators – including one who manufactured fake bank statements, retirement account statements and pay stubs to support the false loan applications – Wolf-Fels assembled the loan applications and sent them to victim financial institutions, which lent the unqualified buyers mortgage funds.
From late 2006 through mid-2007, Dwayne Onque served as a “straw buyer” of five properties in Middletown, New Jersey, and Wildwood, New Jersey. For each of the five properties, he signed false and fraudulent loan applications and closing documents that resulted in the release of more than $2 million of mortgage funds.During 2006 and 2008, Mashon Onque served as a title agent at Tri-State Title Agency in Montclair, New Jersey. She acted as the closing agent for fraudulent mortgage loans orchestrated by her conspirators, including Timothy Ricks and her brother, Dwayne Onque. The conspirators put together buyers and sellers in real estate transactions, and then filed false and fraudulent loan applications containing inflated income figures for the borrowers. After the mortgage lenders approved the loans, Mashon Onque prepared and signed fraudulent settlement statements that falsely claimed that the borrowers had made down payments to close the loans.
The wire fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Wolf-Fels and Dwayne Onque are scheduled to be sentenced on Jan. 29, 2015. Mashon Onque is scheduled to be sentenced on Jan. 30, 2015.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorneys Matthew T. Smith and Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.
14-361
Defense counsel: Wolf-Fels: Paul Urbania Esq., Shrewsbury, N.J.
Dwayne Onque: Peter Levin Esq., Philadelphia
Mashon Onque: Anne Singer Esq., Haddonfield, N.J.Brooklyn Doctor Found Guilty in Manhattan Federal Court in Connection with Massive No-Fault Insurance Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that TATYANA GABINSKAYA was found guilty Friday, October 3, 2014, of various health care fraud and mail fraud offenses following a two-week jury trial before the U.S. District Judge J. Paul Oetken. The jury convicted GABINSKAYA of charges arising out of her involvement, from 2007 through February 29, 2012, in the largest single no-fault automobile insurance fraud scheme ever charged.
GABINSKAYA, 60, of Brooklyn, New York, is the 32nd defendant convicted in this case following arrests on February 29, 2012, as part of an indictment (the “Superseding Indictment”) that charged 36 defendants with conspiracy to commit mail fraud and health care fraud and charging some defendants with racketeering and money laundering.
According to the Superseding Indictment and evidence admitted at trial:
Under New York State Law, every vehicle registered in the State is required to have no-fault automobile insurance, which enables the driver and passengers of a registered and insured vehicle to obtain benefits of up to $50,000 per person for injuries sustained in an automobile accident, regardless of fault, (the “No-Fault Law”). The No-Fault Law requires prompt payment for medical treatment, thereby obviating the need for claimants to file personal injury lawsuits in order to be reimbursed. Under the No-Fault Law, patients can assign their right to reimbursement from an insurance company to others, including medical clinics that provide treatment for their injuries. New York State Law also requires that all medical clinics in the State be incorporated, owned, operated, and/or controlled by a licensed medical practitioner in order to be eligible for reimbursement under the No-Fault Law. Insurance companies will not honor claims for medical treatments from a medical clinic that is not actually owned, operated, and controlled by a licensed medical practitioner.
In order to mislead New York authorities and private insurers, the true owners of these medical clinics paid licensed doctors to use their licenses to incorporate the professional corporations, through which the true owners billed private insurers millions of dollars for medical treatments and tests, many of which were not medically necessary. GABINSKAYA was the stated owner of one such clinic that provided MRIs and other radiology tests, although the clinic was, in reality, owned by her co-defendants Mikhail Zemlyansky and Michael Danilovich. In addition, GABINSKAYA was the stated owner of six other medical professional corporations, including five incorporated in the span of approximately one year. When interviewed under oath about her role at the clinic controlled by Zemlyansky and Danilovich, GABINSKAYA repeatedly lied under oath to deceive the insurers and induce them into paying claims that were not eligible for reimbursement.
GABINSKAYA was convicted of one count of conspiracy to commit health care fraud and one substantive count of health care fraud, each of which carries a maximum sentence of 10 years in prison. She was also convicted of one count of conspiracy to commit mail fraud and one substantive count of mail fraud, each of which carries a maximum sentence of 20 years in prison. GABINSKAYA is scheduled to be sentenced on January 28, 2015, at 12:30 p.m., before Judge Oetken. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
A mistrial was declared at the conclusion of GABINSKAYA’s first trial in the fall of 2013 when the jury failed to reach a unanimous verdict as to GABINSKAYA. Two of her co-defendants, Billy Geris and Joseph Vitoulis, were acquitted at trial. With respect to co-defendants Mikhail Zemlyansky and Michael Danilovich, the jury acquitted on some counts and hung on other counts. Zemlyansky and Danilovich are scheduled to be retried in January 2015. Co-defendant Matthew Conroy is scheduled to stand trial beginning December 2, 2014. A trial has not yet been scheduled for co-defendant John Maurello. Thirty-one other defendants, including three other doctors, have pled guilty to, among other things, conspiracy to commit health care fraud. Charges were dismissed against three other defendants, one defendant entered into a deferred prosecution agreement, and one defendant died during the pendency of the case.
U.S. Attorney Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation. He also thanked the National Insurance Crime Bureau for its assistance.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Amanda Kramer, Janis Echenberg, Daniel S. Goldman, Edward Y. Kim, Peter M. Skinner, and Daniel S. Noble are in charge of the prosecution. Assistant U.S. Attorney Carolina Fornos is in charge of the forfeiture aspects of the case.
U.S. v. Mikhail et al. Zemlyansky, Indictment
Banker Pleads Guilty to Felony False Statement ChargeRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that in federal court today before United States Magistrate Judge Kimberly A. Swank, MATTHEW MARKS WESTBROOKS, 33, of Lexington, South Carolina, pleaded guilty to a Criminal Information charging him with Making Material False Statements, in violation of Title 18, United States Code, Section 1001.
The Criminal Information to which WESTBROOKS pled guilty charged that during times material to the case, WESTBROOKS was employed as a mortgage originator in the Eastern District of North Carolina. WESTBROOKS was separately, but simultaneously, engaged with others in the business of buying and selling properties for profit. In his work as a mortgage originator, WESTBROOKS received a commission whenever he successfully assisted a borrower to obtain a mortgage loan. WESTBROOKS did not receive a commission if the mortgage loan was not approved by the lender, and if the associated real estate transaction did not close.
The Criminal Information further charged that as a mortgage originator, WESTBROOKS was responsible for, among other things, typing borrower loan qualifications and other information into software used by his employer to electronically transmit loan application information from North Carolina to banks and lenders located in various other states. The Loan Application Software was also used to generate a physical or electronic copy of a Uniform Residential Loan Application, or Form 1003, containing borrower loan application information. Form 1003 required the borrower to identify, among other things, the source of any down-payment funds. Form 1003 contained a warning that “misrepresentation(s) of the information contained in this application may result in . . . criminal penalties, including, but not limited to, fines or imprisonment. . .”
The Criminal Information further alleged that as a mortgage originator, WESTBROOKS was required by his employer on each transaction to communicate with the borrower regarding the borrower’s obligations at closing, including the requirement to bring to the closing cash due from the borrower under the terms of the loan. Specifically, WESTBROOKS was required to obtain a copy of the HUD-1 Settlement Statement (“HUD-1”) from the closing attorney. The HUD-1 showed, among other things, the remaining balance of the “Borrower’s Obligation,” or cash due from the borrower at closing. WESTBROOKS was obligated to review the HUD-1s and confer with the borrower regarding the Borrower’s Obligation, as set forth in the HUD-1.
The banks and lenders did not permit the seller, the mortgage originator, or a third party to the transaction to “front” or pay the Borrower’s Obligation on behalf of the borrower. The borrower was obligated to bring to closing the amounts identified on the HUD-1 in satisfaction of the Borrower’s Obligation. Moreover, the HUD-1 contained a warning that providing false statements on the HUD-1 could result in a prosecution under Title 18, United States Code, Section 1001.
The Criminal Information specifically alleged that on or about February 14, 2007, WESTBROOKS falsified a loan application and HUD-1 Settlement statement which reflected that the borrower supplied down payment funds when, in fact, the defendant had supplied the funds on behalf of the borrower.
At the sentencing in this case, which is presently scheduled for the January 2015 term of court, WESTBROOKS faces up to five years of imprisonment, up to a $250,000 fine, up to three years of supervised release, and an order of restitution.
The case against WESTBROOKS relates to the pending cases against developer JUSTIN LEE ROOKS, 31, of Loris, South Carolina; developer MICHAEL THOMAS BARTLETT, 46, of Myrtle Beach, South Carolina; closing attorney ROBERT HAROLD MELVILLE, JR., 50, of Lake Waccamaw; and ANTHONY MICHAEL TEW, 31 of Conway, South Carolina. On December 11, 2012, ROOKS and BARTLETT pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349. MELVILLE pled guilty to Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349. The charges against MELVILLE, ROOKS, and BARTLETT carry maximum penalties of 30 years in prison and up to $1 million in fines. On February 12, 2013, TEW pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum term of imprisonment of 5 years and up to $250,000 in fines.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Attorney General Holder Calls Cuts to Early Voting a 'Step Backward' as Restrictions Take Effect in Ohio, ElsewhereRead the Press Release
On the heels of the Supreme Court’s decision late last month to allow Ohio’s new voting law to go into effect, Attorney General Eric Holder criticized the law’s restrictions on early voting, which he said were “heavily used” by African-American voters.
“It is a major step backward to allow these reductions to early voting to go into effect,” the Attorney General said in a video message posted on the Justice Department’s website. “Early voting is about much more than making it more convenient for people to exercise their civic responsibilities. It’s about preserving access and openness for every eligible voter, not just those who can afford to miss work or who can afford to pay for childcare.”
The Ohio law has been the subject of a lawsuit by civil rights groups and the Justice Department filed a brief in the case in July. A federal judge ruled that the law violated the Voting Rights Act and blocked it from taking effect. A federal appeals court judge upheld that ruling, but the Supreme Court disagreed and ruled the law should go into effect immediately. Absent the Court’s ruling, early voting would have begun in Ohio last Tuesday.
In North Carolina, the Justice Department has directly challenged a state law that cuts back on early voting and eliminates same-day registration. While no ruling on the merits has been issued yet in that case, the 4th Circuit Court of Appeals ruled last week to allow much of the law—including the reductions to early voting—to go into effect in the meantime.
The complete text of the Attorney General’s video message appears below.
“One of the Justice Department’s most solemn responsibilities is ensuring access to the ballot box for every eligible citizen. And over the last six years, my colleagues and I have taken robust action to protect the voting rights of all Americans – including communities that have been too long overlooked and too often underserved.
“Before the Shelby County case was wrongly decided, we successfully challenged efforts in Texas and Florida that would have disproportionately disenfranchised citizens of color in those states, and South Carolina had to make changes to its voting restrictions. It should not be lost on us that almost as soon as the Supreme Court decision in Shelby County was handed down, the state of Texas implemented a photo ID law that the courts had previously blocked, and that North Carolina implemented sweeping restrictions on voting rights. The Department of Justice has now been forced to challenge those discriminatory laws in court.
“Our work has taken us to other parts of our nation as well. We have worked to protect the voting rights of servicemembers, and to ensure accessible polling places throughout Indian Country and Alaska Native communities. And we have fought back against discriminatory redistricting proposals that may make it more difficult for many Americans to make their voices heard.
“Despite these efforts, in some places, we’ve continued to see troubling new measures that unnecessarily restrict the ability of particular Americans to participate in the democratic process. Ohio, for example, has imposed new restrictions that significantly reduce opportunities for early voting – opportunities that had in the past been heavily used by African-American voters.
“The early voting times targeted for cancellation – including weeknight and Sunday hours – previously provided critical opportunities for many people to get to the polls. In 2012, tens of thousands of Ohio voters cast their ballots during the voting days that Ohio has now eliminated. And studies suggest that these restrictions will disproportionately affect people with childcare responsibilities, hourly salaries, and reduced access to transportation – people who may have difficulty getting to the polls at any other time, and who are much more likely to be low-income or minority individuals.
“It is a major step backward to allow these reductions to early voting to go into effect. The public should be demanding the state officials who seek to impose these restrictions to justify—clearly, factually, and empirically—why they are necessary. Early voting is about much more than making it more convenient for people to exercise their civic responsibilities. It’s about preserving access and openness for every eligible voter, not just those who can afford to miss work or who can afford to pay for childcare. That’s why a number of states have expanded early voting in recent years. Throughout our nation’s history, we’ve repeatedly seen that there is simply no good reason – no good reason – to reduce voting access. Indeed, the arc of our nation’s history has, until recently, been to expand access to the ballot. Restricting voting hours in ways that would disproportionately impact minority communities is not only unnecessary and unwarranted – it is out of step with our history of continually expanding the franchise. It is contrary to our fundamental values of equality, opportunity, and inclusion. And it is an affront to millions who have marched, and fought, and too often died to make real America’s most basic promise. Three brave young men gave their lives in 1964, as did a courageous Detroit mother of five in 1965, so that others might be able to vote and be truly free. Are we now to turn our back on those ultimate sacrifices?
“We at the Department of Justice will never rest in our efforts to ensure the right to vote. Nor will I. And today, I’m calling on election officials and other public servants at every level across the country – men and women who are charged with upholding America’s highest ideals – to consider their responsibilities not to political constituencies, but to the country we all serve. To think about the deep unfairness of curtailing voting opportunities. And to reflect on their place in the history of this country to which they are potentially consigning themselves.
“In a great nation governed both by and for the people, our advances have always been of our own making. And going forward, it will be up to all of us to ensure that engagement in that democratic process remains the responsibility and the birthright of every American.”
The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.
Antioch Resident Pleads Guilty to Aggravated Identity Theft in Tax Fraud SchemeRead the Press Release
OAKLAND – Starkisha Benson pleaded guilty on October 3, 2014, to conspiring to file false claims and aggravated identity theft, United States Attorney Melinda Haag and IRS-CI Internal Revenue Service – Criminal Investigation Division Special Agent in Charge José M. Martinez, announced.
According to her plea agreement, Benson filed false tax returns from her residence and from various locations along with her co-conspirators and without the permission of the person listed on the tax return. Benson admitted to creating fake W-2 forms that were used to inflate income and corresponding credits in order to receive fraudulent income tax refunds. Benson also admitted to stealing another person’s identity and using that information to file a false 2009 and 2010 tax returns. Benson further admitted to misusing the identity of that same person’s minor child. Benson acknowledged embezzling these tax refunds from the Internal Revenue Service and keeping the money for her own use on debit cards that she possessed.
Benson, 35, of Antioch, was charged with Khyber Law and Jessika Green in a twenty-four count superseding indictment on Dec. 17, 2013. The defendants were charged with wire fraud, conspiracy to file false claims, filing false claims, effecting fraudulent transactions with an access device, theft of public money, and aggravated identity theft. Law and Green each pleaded guilty to conspiracy to file false claims.
Law, 26, and Green, 33, of Antioch, are scheduled to be sentenced before the Honorable Jon S. Tigar, United States District Court Judge, on Dec. 5, 2014, in Oakland.
Benson is scheduled to be sentenced on Jan. 9, 2015. Based on her plea of guilty, Benson faces a mandatory minimum 2-year sentence related to the aggravated identity theft conviction.
The maximum statutory penalty for each count of conspiracy to file false claim, in violation of 18 U.S.C. § 286, is ten years in prison and a fine of $250,000. The maximum penalty for aggravated identity theft, in violation of Title 18, U.S.C. § 1028A, is a mandatory consecutive sentence of two years in prison, and a fine of $250,000 plus restitution. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Thomas Newman is prosecuting the case. The prosecution is the result of an investigation by the Berkeley Police Department and the IRS, Criminal Investigation Division.
(Benson indictment )
Airline Pilot Convicted of Sex Offense on the RunRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Tara Tighe, Public Affairs SpecialistWHEELING, WEST VIRGINIA – A commercial airline pilot from Pittsburgh who was recently convicted of a Federal sex crime is now a fugitive from justice, according to United States Attorney William J. Ihlenfeld, II.
MUSTAFA BAZBAZ, who pled guilty in August to the felony offense of “Travel with Intent to Engage in Illicit Sexual Conduct”, was out on bond and under electronic monitoring in Western Pennsylvania until last week. On Friday evening he was permitted to leave his home to attend a worship service but never returned and thus a warrant was issued for his arrest. Bazbaz, who is 28 years of age, has been on the run since Friday evening at approximately 6 p.m. He was last seen driving a silver Buick Century automobile with California License Plate Number 6YUTO65.
“The hunt for Mr. Bazbaz is unique in that he’s a trained pilot, he comes from a wealthy family with substantial means, he’s a convicted child predator, and he faces a lengthy prison sentence once he’s captured,” said U.S. Attorney Ihlenfeld. “We need the public’s help to track him down before he harms anyone else.”
At the August plea hearing Bazbaz admitted to communicating with a 15-year old female from Jefferson County, Ohio, in December of 2013 via the website known as MeetMe.com. He misrepresented his age and name to the victim, claiming to be 17 years old and to be named “Mike B.” Bazbaz sent sexually explicit images of himself to the victim before arranging to pick her up in her home in Jefferson County in December of 2013. He then took the victim to a hotel room in Hancock County where they engaged in sexual intercourse. At the time of the incident Bazbaz was employed as a pilot with Republic Airways in Pittsburgh.
Anyone with information regarding the whereabouts of Bazbaz should contact Chad Simpson at the United States Marshals Service at 304-218-9286.
5 October 2014
Portsmouth Man Sentenced to 170 Months in Prison for Heroin DistributionRead the Press Release
NORFOLK, Va. –Shawn Butler, a/k/a “Dickie,” 39 , of Portsmouth, Virginia, was sentenced today to 170 months in prison, followed by 8 years of supervised release for heroin distribution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia and Karl C. Colder, Special Agent in Charge for Drug Enforcement Administration’s Washington Division Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
According to court documents, Butler is the leader of a heroin trafficking organization out of Portsmouth, Virginia. Butler, who has been dealing narcotics since 2005, began selling heroin in 2008. In 2008, he began referring customers to other dealers whom he was supplying. Butler and his co-conspirators distributed use amounts of cocaine and heroin to multiple individuals in the Tidewater area between 2008 and 2013. Butler had a courier who transported heroin from New Jersey to the Tidewater area. He also used multiple street level dealers to push his product out into location communities.Butler was indicted by a federal grand jury on January 9, 2014 and pleaded guilty to conspiracy to distribute 100 grams or more of heroin on May 12, 2014.
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. 2:14-cr-11.
This case was investigated by the Drug Enforcement Administration. Special Assistant U.S. Attorney Amy Cross prosecuted the case on behalf of the United States.Tweet
3 October 2014
Woman Pleads Guilty and Sentenced to 28 Years in Prison for Armed Robbery of Belleville Jack-In-The-BoxRead the Press Release
Case Is One of Many Prosecuted As Part of United States Attorney Wigginton’s Armed Robbery Initiative
Follow @SDILNewsYulonda Stewart, 29, plead guilty and was sentenced to 28 years in prison today on a three-count indictment charging her with Interference with Commerce by Robbery, Use of a Firearm During a Crime of Violence, and Felon in Possession of a Firearm, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. The Armed Robbery count arises from the federal Hobbs Act, which makes it a crime to obstruct, delay or affect interstate commerce by robbery, and is used by United States Attorney Wigginton as a way to combat armed robbery in the Southern District of Illinois. Following her prison sentence, Stewart will be on federal supervised release for 5 years. Stewart has been in custody since her arrest on December 9, 2012.
“I will continue to fight these armed robberies with all of my resources.” United States Attorney Wigginton noted. “People in Southern Illinois should be able to patronize restaurants and convenience stores without fear of these robbers. As Ms. Stewart found, she will serve almost as much time in federal prison as she has been on this earth. The message is clear – Stop this Violence, or face the consequences of spending decades in federal prisons far from your homes, families, and friends.”
A factual stipulation filed with the Court revealed that on December 9, 2012 at approximately 8:20 p.m., Stewart entered the Jack-in-the-Box restaurant located in Belleville, Illinois armed with fully loaded black Hi-Point 9 mm pistol. Stewart pointed the firearm at the four employees present and forced them to the back of the restaurant where the safe was located. Stewart ordered the store manager to open the safe and place all of the money in a paper bag while she ordered the other employees to lie on the floor. As the manager removed the money from the safe, Belleville Police officers arrived and ordered Stewart to drop the firearm. Stewart was then taken into custody at gunpoint. The sentencing judge characterized Stewart as “the most violent woman he has sentenced since he has been a judge.”
This investigation was conducted by the Belleville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Ali Summers.
Woman Indicted for Possession of Nearly Sixty-four Pounds of Liquid MethamphetamineRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that a federal grand jury has returned an indictment against VANESSA J. HERNANDEZ, age 34, of Houston, Texas. The indictment charges the defendant with one count of possession with intent to distribute methamphetamine, a schedule II controlled substance, in violation of Title 21, United States Code, Section 841(a)(1). The indictment also includes a forfeiture allegation which requires the defendant to forfeit the proceeds of her crime if convicted.
As alleged in a previous unsealed criminal complaint against the defendant, on September 29, 2014, the defendant was traveling through Baton Rouge on a commercial passenger bus when members of the Drug Enforcement Administration, High Intensity Drug Trafficking Area (HIDTA) Task Force interdicted the bus. The criminal complaint further alleges that the defendant was traveling with a suitcase filled with thirty-six soda bottles containing liquid methamphetamine weighing approximately sixty-four pounds.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Kevin R. Sanchez.
NOTE: An indictment is an accusation by the Grand Jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Westerville Youth Coach Arrested on Child Porn ChargesRead the Press Release
COLUMBUS – An investigation by federal, state and local law enforcement in Central Ohio has led to the arrest of Bryan Lehman, 50, of Westerville, Ohio for allegedly producing, receiving, distributing and possessing child pornography.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, Marlon V. Miller, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Franklin County Sheriff Zach Scott, Westerville Police Chief Joseph Morbitzer and members of the Franklin County Internet Crimes Against Children Task Force announced the arrest today.
The criminal complaint alleges that since November 2010 Lehman participated in the use of a minor engaged in sexually explicit conduct for the purpose of producing images or video. He also allegedly received, distributed, and possessed sexually explicit images and video of minors.
Production of child pornography is punishable by a range of 15 to 30 years in prison. Receipt and distribution of child pornography are punishable by a range of 5 to 20 years in prison.
Lehman served as a volunteer coach for the Westerville Youth Baseball and Softball League in the spring of 2014. He is scheduled to appear for a detention hearing today at 2 p.m. in front of U.S. Magistrate Judge Terrence P. Kemp.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office Upper Arlington Police Department
Grove City Police Department Columbus Police Department
Grandview Heights Police Department Whitehall Police Department
Hilliard Police Department Westerville Police Department
Homeland Security Investigations U.S. Secret Service
Ohio ICAC Franklin County Prosecutor's OfficeThis case is being brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims.
U.S. Attorney Stewart commended the members of the ICAC Task Force for the cooperative investigation, and Assistant U.S. Attorney Heather Hill and Special Assistant U.S. Attorney Jennifer Rausch, who are representing the United States in this case.
Charges contained in a complaint are allegations. All defendants should be presumed innocent until and unless proven guilty in court.
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Carla Latice Merriweather, 25, of South Bend, Indiana pled guilty to the felony offense of being a drug user in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for January 8, 2015. This case is being prosecuted by Assistant United States Attorney Donald J. Schmid.
- Marie Roberts Henderson, 36, of Nappanee, Indiana pled guilty to the felony offense of willfully aiding, assisting and advising in the preparation and presentation to the Internal Revenue Service, of U.S. Individual Income Tax Returns, Forms 1040 which were false as to a material matter. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service-CID. Sentencing has been set for January 22, 2015. This case is being prosecuted by Assistant United States Attorney Barbara Brook.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Willie Long, 23, of Elkhart, Indiana was sentenced to 51 months imprisonment with 18 months supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, Long was driving an automobile in St. Joseph County, Indiana with a Smith & Wesson handgun in the car. Long had been convicted of a felony in Elkhart County in 2007 in Circuit Court. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- John Carlisle, 50, of New Haven, Indiana was sentenced to 37 months imprisonments to be followed by two years of supervised release after pleading guilty to the felony offense of making false statements in connection with a mortgage loan and mortgage insurance. According to documents filed in this case, during the period 2008 through 2010, John Carlisle was a licensed loan originator in Fort Wayne, Indiana. Ryan Webb, in conjunction with Johnny Stine and others, purchased low-end homes in the Fort Wayne area, often using an entity called Sunset Properties of NI, LLC. Through the use of advertising and a website, Webb and Stine attracted buyers for these properties. Webb and Stine would then sell these low end homes to these buyers, most often for a sales price of two or three times what had been paid for the homes. Oftentimes, the purchasers of the homes were of very modest financial means and could not, on their own, qualify for the needed mortgage loan. As part of a fraud scheme, Webb and Stine provided monies to the home buyers/borrowers to cover loan closing costs and to give the appearance that the buyers had assets in reserve. To hide the fact that all of the monies for closing and reserves had come from Webb/Stine (monies that were supposed to come from the buyers/borrowers or persons who were relatives of them but in fact came from the seller/real estate broker), Webb and Stine with the knowledge and help of Carlisle prepared phony “gift letters” documenting falsely that the monies Webb and Stine provided had come from family or relatives of the buyers/borrowers. These sham gift letters with false representations violated applicable HUD/FHA mortgage insurance regulations and in fact deceived HUD/FHA. Because these buyers/borrowers could not on their own qualify for the mortgage loans, they frequently defaulted soon after getting the mortgage loans and the homes went into foreclosure, which caused substantial losses to the mortgage lenders and mortgage insurance provider HUD/FHA. This case was the result of an investigation by the FBI. This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Soulemayne Camara, 27, of Indianapolis, Indiana pled guilty to the felony offenses of possession of fifteen or more unauthorized access devices and the interstate transportation of stolen goods. This charge was filed as a result of an investigation by the United States Department of Treasury. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Randall Stewart.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Aalap Shah, 32, of Chicago, Illinois was sentenced to 1 year probation and to pay $19,953.90 in restitution after pleading guilty to the misdemeanor offense of knowingly and willfully aiding and abetting the submission of applications to Medicare and Medicaid that contained misrepresentations of material facts. According to documents filed in this case, Shah specifically claimed to be the owner of the business when in fact the actual owner of the business was her father. This case was the result of an investigation by the Federal Bureau of Investigation. This case was prosecuted by Assistant United States Attorney Diane Berkowitz.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Preston R. Craig, 41, of Fort Wayne, Indiana pled guilty to the felony offense of maintaining a drug-involved premise. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Drug Enforcement Administration, and the Fort Wayne Police Department. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
- Derek C. Whetsel, 43, of Fort Wayne, Indiana pled guilty to the felony offense of selling a firearm to a convicted felon. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Fort Wayne Police Department. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Marcel T. Banks, 26, of Fort Wayne, Indiana, was sentenced to 6 months imprisonment, with 3 years supervised release and to pay $87,000 in restitution after pleading guilty to the felony offense of bank fraud. According to documents filed in this case, during the course of an investigation, the Internal Revenue Service obtained bank records, interviewed bank representatives and other individuals and discovered that the brother of Marcel Banks, working as a personal banker at a local bank, had become, with Marcel Banks, secondary joint owners to an account that was opened without the knowledge of the customer. Banks had attempted to withdraw $10,000 from the account and the attempted transaction was captured on bank surveillance camera. This case was the result of an investigation by the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Lovita Morris King.
- Raul Resendiz, 35, of Fort Wayne, Indiana, was sentenced to 46 months with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of firearm. According to documents filed in this case, a 911 call came into Fort Wayne Police Department’s dispatch about an individual who had a gun and was in their home threatening to shoot police if they came after him. Police arrived and apprehended the individual, identified as Resendiz and located an AK 47 assault type rifle within his reach. Federal agents subsequently learned about the location of another weapon Resendiz had which he kept at his girlfriend’s residence and recovered from that location a Norinco SKS rifle. Resendiz had a 2011 prior felony conviction in Allen Superior Court for dealing in a counterfeit substance and was, at the time of his arrest on the federal charges, on state probation for the drug offense. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Tina Nommay.
Utica Tax Preparer Sentenced for Preparing False Tax ReturnsRead the Press Release
RICHARD S. HARTUNIAN, United States Attorney, Northern District of New York announces that JAMES BUTCHER (58, of Little Falls, NY), an accountant engaged in the business of preparing tax returns, was sentenced to 12 months and 1 day imprisonment, as well as 1 year supervised release and restitution to the IRS in the amount of $79,771.00 for his felony conviction for aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2).
During the plea hearing on April 2, 2014, before the Honorable David N. Hurd in Utica, NY, BUTCHER admitted the following: That he was the owner and operator of a tax preparation business named Jim’s Income Tax Service, which he operated out of his residence located in Little Falls, New York. From 2007 through 2010, he prepared forty false Form 1040 returns for fourteen of his clients. All forty of the 1040 forms contained false or inflated “Schedule A” deductions. Specifically, they all contained false or inflated charitable deductions and some also included false or inflated unreimbursed employee expenses. In preparing these forty returns, the defendant created and falsified expenses and deductions relating to charitable contributions and job expenses. He further admitted that he inflated deductions without being directed to do so by his clients. The total tax loss resulting from the forty false and fraudulent returns for tax years 2007-2010 is $140,446.00.
This prosecution resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigations, Syracuse, New York. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds. Further questions may be directed to Executive Assistant U.S. Attorney John Duncan at (315-448-0672).
Two Tampa Corporations and Four Tampa Residents Plead Guilty to Scheme to Unlawfully Sell an Unregistered Pesticide and Obstruct JusticeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Maureen O’Mara, Special Agent in Charge, United States Environmental Protection Agency, Criminal Investigation Division (EPA-CID), Michael A. Hill, Special Agent in Charge, United States Environmental Protection Agency, Office of Inspector General (EPA-OIG), Atlanta Field Office, and Colonel/Director Calvin Adams, Florida Fish and Wildlife Conservation Commission, Division of Law Enforcement (FWCC), announce that New Nautical Coatings, Inc., d/b/a “Sea Hawk Paints,” Sea Hawk Refinish Line, Inc., d/b/a “Refinish Line Auto Supplies,” of Clearwater, and Erik Norrie, 42, David Norrie, 46, Jason Revie, 44, and Tommy Craft, 46, each of Hillsborough County, pled guilty before United States District Judge Ursula Ungaro.
New Nautical Coatings, Inc. and David Norrie pled guilty to willfully conspiring to corruptly obstruct the due and proper administration of law under which a pending proceeding was being had before the Environmental Protection Agency, in violation of Title 18, United States Code, Section 371. At sentencing, David Norrie faces up to five years in prison, up to three years of supervised release, and a $250,000 fine. At sentencing, New Nautical Coatings, Inc. faces a fine of up to $500,000, or twice the gross pecuniary gain resulting from the offense, whichever is greater, and a term of probation of not less than one year and not more than five years. Pursuant to the terms of the plea agreement, New Nautical has agreed to pay a fine of $1,235,315.00, and implement a comprehensive Environmental Compliance Plan in cooperation with the U.S. Attorney’s Office and the EPA.
Sea Hawk Refinish Line and Erik Norrie pled guilty to willfully conspiring to knowingly distribute and sell an unregistered pesticide, in violation of Title 18, United States Code, Section 371. Jason Revie and Tommy Craft pled guilty to knowingly distributing and selling an unregistered pesticide, in violation of Title 7, United States Code, Section 136j(a)(1)(A). At sentencing, Erik Norrie, Jason Revie and Tommy Craft face up to one year in prison, up to one year of supervised release and a $100,000 fine. Sea Hawk Refinish Line, Inc. faces a fine of up to $200,000, or twice the gross pecuniary gain resulting from the offense, whichever is greater, and a term of probation of not more than five years.
According to court documents, New Nautical manufactured a marine paint called Biocop Anti-Fouling Coating which contained tributyltin methacrylate (“TBT”), a pesticide subject to registration with the EPA that was found to have a significant harmful effect on marine life. On or about March 30, 2005, the EPA cancelled New Nautical’s registration for Biocop, making it unlawful for the company to manufacture Biocop for sale in the United States after December 1, 2005, or sell Biocop in the United States after December 31, 2005. At the time, New Nautical was the last manufacturer of TBT based anti-fouling coatings in the United States.
In order to manufacture and sell Biocop after its registration was canceled, New Nautical Coatings conceived and executed a plan to produce and sell Biocop in the United States by making it appear that it had manufactured Biocop prior to December 1, 2005, and sold its inventory of the banned pesticide to distributors, including to codefendant Refinish Line, by December 31, 2005. In an effort to conceal New Nautical’s unlawful production and sale of Biocop from authorities, David Norrie falsely represented to an EPA inspector that New Nautical had sold its existing stock of Biocop to distributors. Additionally, after David Norrie sold 60 gallons of Biocop to a customer in Broward County, he directed that customer to tell the EPA that he did not have Biocop and that New Nautical did not sell Biocop.
Sentencing for all defendants is scheduled for December 5, 2014.
Mr. Ferrer commended the investigative efforts of EPA-CID, EPA-OIG, and FWCC. This case is being prosecuted by Assistant U.S. Attorneys Alejandro O. Soto and Maria Medetis.
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.
Tampa Man Pleads Guilty to Attempted Enticement of A Child for SexRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Nicholas Darwin Yancey (30, originally from Orlando) pleaded guilty yesterday to child enticement. He faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on February 10, 2014, Yancey, an enlisted member of the U.S. Air Force, posted an advertisement on Craigslist soliciting members of the public for “texting/sexting.” An undercover law enforcement officer with the U.S. Air Force Office of Special Investigations, posing as a 14 year-old child, responded to the ad. Yancey and the “child” communicated over the Internet for months, during which time Yancey told the “child” that he wanted to engage in sexual intercourse with her. He engaged in sexually explicit conversation and solicited nude photographs of the “child.” He also stated that he had a crush on her, and invited her to a sleepover at a hotel on MacDill Air Force Base.
On June 26, 2014, the undercover officer observed several additional postings from Yancey on Craigslist. The officer responded to one of the advertisements posing as a second “child.” Yancey and the second “child” communicated using an Internet messaging application. Yancey told the second “child” that he wanted to engage in sexual intercourse with her, and possibly one of her friends. He arranged to meet the second “child” for sex on July 3, 2014, but later attempted to change the meeting. When the second “child” declined, Yancey informed her that he would simply go down the list, referring to his ability to find another person to meet. On June 27, 2014, Yancey contacted the first “child” and arranged to meet her later that week for sex. On June 29, 2014, he traveled to the Ballast Point area of Tampa, where they had arranged to meet, and was arrested.
This case was investigated by the U.S. Air Force Office of Special Investigations. It is being prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Stuart Rosenfeldt Sentenced in Connection with Rothstein CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Stuart Rosenfeldt, 59, of Boca Raton, was sentenced today by United States District Judge Marcia G. Cooke to 33 months imprisonment, to be followed by two years’ supervised release in connection with his conviction for conspiracy to commit campaign finance fraud, to defraud the United States, to commit bank fraud and to deny civil rights, in violation of 18 U.S.C. § 371. Rosenfeldt was an attorney admitted to practice law in Florida and was an equity partner in the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
During his June 11, 2014 guilty plea, the defendant admitted that, in order to circumvent campaign finance laws setting limitations on the amounts which donors can contribute, Rothstein enlisted some of the attorneys and administrative personnel of RRA, and other persons associated with RRA, including Rosenfeldt, to make political contributions to various political campaigns which were unlawfully reimbursed to them by RRA. Rosenfeldt also participated in a scheme to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.” Additionally, Rosenfeldt arranged with Rothstein to have certain law enforcement officers utilize unlawful threats against the boyfriend of an escort who was threatening to expose an illicit relationship which existed between the escort and Rosenfeldt.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case was prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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.
State Prison Inmate Sentenced to Federal Prison for Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an inmate at SCI Waymart who arranged drug transactions from prison was sentenced to 46 months in federal prison today by U.S. District Court Judge Malachy E. Mannion.
According to United States Attorney Peter Smith, the defendant, Eudy Gonzalez, age 24, previously admitted that he conspired with others to distribute and possess with intent to distribute heroin from November 2013 through January 2014.
Gonzalez was indicted by a federal grand jury on March 11, 2014, as a result of an investigation by special agents and task force officers of the Federal Bureau of Investigation and Scranton Police.
Judge Mannion ordered that the federal sentence run consecutive to Gonzalez’s state sentence. Judge Mannion also ordered Gonzalez to serve three years on supervised release following his prison sentence, and pay a $100 special assessment.
Gonzalez, a citizen of the Dominican Republic, is also subject to deportation.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
St. Tammany Woman, Ramona Hudson, Pleads Guilty to Charges Related to Filing Fraudulent Claims for Oil Spill CompensationRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RAMONA HUDSON, age 51, a resident of Slidell, Louisiana, pled guilty yesterday to one count of conspiracy to commit wire fraud relating to a fraudulent application she made or caused to be made to the Gulf Coast Claims Facility (GCCF) for financial assistance during the aftermath of the Deepwater Horizon oil spill.
According to court documents, the GCCF made disaster assistance money available to individuals and businesses affected by the oil spill resulting from the Deepwater Horizon explosion. The GCCF required individuals to verify loss of income. On October 1, 2010, HUDSON applied for disaster assistance funds, representing that she was employed in a commercial fishing business before the oil spill. However, HUDSON had never worked in the commercial fishing business, and she submitted or caused to be submitted false documentation to establish her false earnings. Based on HUDSON’S fraudulent application, HUDSON received approximately $75,000 to which she was not entitled.
HUDSON faces a maximum term of imprisonment of five years, a $250,000 fine, and three years of supervised release following imprisonment. U.S. District Judge Lance M. Africk set sentencing for January 8, 2015.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service and the U.S. Secret Service in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
(Download Factual Basis )
Shooter Sentenced to 43 Years for 1997 Livery Cab HomicideRead the Press Release
Elvin Hill was sentenced today to 43 years in prison at the federal courthouse in Brooklyn. In January 2014, following a jury trial, Hill was convicted of murdering Fredy Cuenca, a livery cab driver, during the course of a robbery on June 29, 1997, in Bushwick, Brooklyn.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office. The sentence was imposed by United States District Court Judge Kiyo A. Matsumoto.
“Almost 20 years ago, in a crime both senseless and brutal, Hill murdered an innocent man on a public street in broad daylight,” stated United States Attorney Lynch. “Now, thanks to the dogged efforts of federal investigators, he has been brought to justice for this brutal crime.”
On the afternoon of June 29, 1997, Hill and another individual were passengers in a livery cab driven by Cuenca. After directing Cuenca to park near a schoolyard on Eldert Street in Bushwick, Brooklyn, Hill bickered with Cuenca over the fare. Hill then drew a .380 caliber pistol that had been concealed on his person, and pointed it at Cuenca’s head. Cuenca, who spoke only broken English, pleaded for his life, pointing at a photo of his two young sons that he kept on the dashboard of his vehicle. Despite his pleas, Hill shot Cuenca in the head, and both he and his companion fled the scene. Cuenca’s brother-in-law, who was also a cab driver, found Cuenca bleeding in his cab a few minutes later and took him to a nearby hospital, where he died.
Although investigators identified the suspects shortly after the crime, there was insufficient evidence to charge them in 1997. Years later, a federal investigator who had previously been assigned to the case as a New York City Police Department detective obtained additional evidence. In March 2012, a federal grand jury returned an indictment against Hill.
Ms. Lynch extended her grateful appreciation to the FBI and to the New York City Police Department for their assistance in this prosecution.
The government’s case was prosecuted by Assistant United States Attorneys Daniel Silver and Seth DuCharme.
The Defendants:
ELVIN HILL
Age: 35
E.D.N.Y. Docket No. 12 CR 214
Romanian Man Sentenced for Wire Fraud and Possession of False Identity DocumentsRead the Press Release
Orlando, Florida – Chief U.S. District Judge Anne C. Conway yesterday sentenced Mihaly Kulcsar (33, a citizen of Romania) to three years in federal prison for conspiracy to commit wire fraud and possession of false identity documents. As part of the judgment, the Court also ordered Kulcsar to pay $355,000 in restitution to his victims. He pleaded guilty on May 22, 2014.
According to court documents, Kulcsar was arrested in July 2013, at a Bank of America branch in Orlando, after he tried to open a bank account with fraudulent identification documents. Further investigation revealed that Kulcsar possessed fake passports and other fake identity documents in four different names, from Denmark, Finland, France, and the Slovak Republic. Kulcsar admitted that he had come to the United States with these fake documents and identities to open business accounts at several banks in central Florida. As part of his scheme, he targeted large banking institutions, including Bank of America, Fifth Third, Chase, SunTrust, Wells Fargo, and BB&T. Kulcsar obtained $355,000 during the course of the scheme, which he wired the money to his co-conspirators through overseas bank accounts.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Bruce S. Ambrose.
River Ridge Man and His Company Charged in Superseding Indictment with Conspiring to Manufacture and Sell Counterfeit Mercedes-benz Diagnostic Equipment Worth over $15,000,000Read the Press Release
U.S. Attorney Kenneth A. Polite announced that RAINER WITTICH, age 65, of River Ridge, Louisiana, and the company he owns, THE BRINSON COMPANY, of Harahan, Louisiana, were charged yesterday in a nine-count superseding indictment by a federal grand jury for their role in creating and selling fake Mercedes-Benz diagnostic equipment containing proprietary software without authorization.
According to the Indictment, WITTICH owned THE BRINSON COMPANY, which sold replacement parts and diagnostic equipment for Mercedes-Benz vehicles. Beginning in about 2001, WITTICH and THE BRINSON COMPANY began developing, manufacturing, and selling fake versions of the Mercedes-Benz Star Diagnostic System (SDS), a hand-held computer containing proprietary, confidential software, with the assistance of a Durham, North Carolina-based company. They did so by obtaining Mercedes-Benz software without authorization, applying “cracks and fixes” to make the software work on everyday laptop computers, and making hundreds of copies of the software product. WITTICH and others then worked to override Mercedes-Benz security systems by purchasing false license keys from a United Kingdom-based individual that, combined with other modifications, would “unlock” the SDS software and make it operable on the counterfeit devices. When Mercedes-Benz notified the United Kingdom-based individual that his conduct was in violation of the law, WITTICH and others discussed plans to have him “go underground and off the radar” and continue to provide assistance and support in the production of fake SDS.
Beginning in about 2005, WITTICH entered into a conspiracy with a California-based company to manufacture and sell the SDS. On some occasions, when one of the fake SDS units sold by the North Carolina or California companies would break, WITTICH and BRINSON would repair them and return them to the customers.
Genuine SDS diagnostic devices are used by mechanics to identify problems with and assure the safety of motor vehicles employing electronic control systems; the fraudulent or unauthorized sale of such units increases the risk of Mercedes-Benz automobiles being stolen or suffering from misdiagnosed or undiagnosed problems. Genuine SDS sold for up to $22,000 each, while WITTICH’S fake SDS sold for between $5,000 and $11,000. In total, WITTICH and BRINSON sold not fewer than 700 counterfeit SDS, and the California-based company sold at least 95 devices.
The superseding indictment added five new counts, including conspiracy to commit copyright infringement and traffic in counterfeit labels and conspiracy to commit international money laundering.
The trial is currently scheduled to begin on November 3, 2014. If convicted, WITTICH faces a maximum term of imprisonment of 60 years, followed by up to 3 years of supervised release, and fine of up to $250,000. BRINSON faces up to a $500,000 fine.
U.S. Attorney Polite reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg and United States Department of Justice Computer Crime & Intellectual Property Section Senior Counsel Evan Williams are in charge of the prosecution.
(Download Indictment )
Readout of Justice Department Officials' Trip to Ferguson, MissouriRead the Press Release
Justice Department spokeswoman Dena Iverson released the following statement Friday regarding the just-completed, two-day visit to Ferguson, Missouri, by senior Justice Department officials:
“At the request of Attorney General Eric Holder, Department of Justice leadership traveled to Ferguson, Missouri, for meetings with the city and the community on Thursday and Friday. As part of the Civil Rights Division’s commitment to a thorough and fair investigation Acting Assistant Attorney General for Civil Rights Molly Moran and Deputy Assistant Attorney General Mark Kappelhoff met with Ferguson City and Ferguson Police Department leadership regarding the ongoing pattern and practice investigation into FPD and discussions included follow up on letters sent to Ferguson Police Chief Jackson regarding identification of officers and uniform requirements. Ronald Davis, Director of the Office Community Oriented Policing Service, and Rob Chapman, Deputy Director of COPS, also attended law enforcement leadership meetings in Ferguson and St. Louis County as part of COPS’s efforts to provide technical assistance to the police department on an ongoing basis.
“Moran, Davis and Kappelhoff were joined by the Community Relations Service during a meeting with community leaders regarding the pattern and practice investigation on Thursday. There will be additional opportunities for community members to meet with Civil Rights Division staff as part of the pattern and practice investigation in the near future.
“While in St. Louis the Civil Rights Division leadership also received an update from the FBI, Civil Rights Division and U.S. Attorney’s Office investigators on the continuing investigation into the shooting of Michael Brown.”
Rapid City Man Found Guilty of Commercial Sex TraffickingRead the Press Release
United States Attorney Brendan V. Johnson announced that Jerry Lane Golliher, age 32, of Rapid City, South Dakota, was found guilty of Commercial Sex Trafficking following a two-day federal jury trial held in U.S. District Court in Rapid City. The guilty verdict was returned on October 1, 2014.
The charge carries a mandatory minimum term of 15 years in federal prison and up to life imprisonment and/or a $250,000 fine, a mandatory minimum term of 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Golliher was indicted for Commercial Sex Trafficking by a federal grand jury on August 13, 2013. He was one of nine men who were arrested and indicted as a result of a sex trafficking undercover operation conducted during the 2013 Sturgis Motorcycle Rally, targeting persons willing to pay money to have sex with underage girls. All nine men were indicted for Commercial Sex Trafficking.
Following several emails with a person who Golliher believed to be associated with a 13 year-old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, as well as the price he would pay for sex with the girl, which was $150. When Golliher went to the pre-determined location to complete the transaction, he was instead met by law enforcement agents and placed under arrest.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorneys Sarah Collins and Ben Patterson prosecuted the case.
Golliher was remanded to the custody of the U.S. Marshals Service pending sentencing.
Prior Felon Exiled to 10 Years in Prison for Drug Dealing and Possessing A GunRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Vyron A. Cox, Jr., age 28, of Washington, D.C., today to 10 years in prison followed by three years of supervised release for being a felon in possession of a gun and possession with intent to distribute 5.45 grams of marijuana.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Mark A. Magaw of the Prince George’s County Police Department; Maryland Attorney General Douglas F. Gansler; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
According to his plea agreement, on December 27, 2012, Prince George’s County Police officers in the area of 2400 Chillum Road in Hyattsville, Maryland saw Cox repeatedly getting in and out of several cars, leading officers to suspect that Cox was involved in drug dealing. Marked patrol units were called to the scene and an officer approached Cox who was inside a car. As the officer approached the car, Cox got out and began to walk away. Cox ignored police requests to stop, and kept reaching for his front pockets and waistband.
Officers also saw a black object in Cox’s right hand. They ordered Cox to stop and lay down. Cox held his hand under his body, resting on his waistband. From that area, officers seized a loaded, black handgun. They also seized 12 plastic bags of marijuana from Cox’s front pants pocket and additional plastic bags of marijuana from the car. The bags contained a total of 5.45 grams of marijuana. Prior to this time, Cox had been convicted of a felony and was prohibited from possessing a firearm.
United States Attorney Rod J. Rosenstein commended the ATF, Prince George’s County Police Department, Maryland Attorney General’s Office and Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, and Assistant United States Attorney Kelly O'Connell Hayes, who prosecuted the case.
Plymouth Man Indicted on Child Pornography ChargesRead the Press Release
Boston – A Plymouth man was indicted yesterday with distribution and possession of child pornography.
Brendan R. Kessler, 25, was indicted by a federal grand jury in Boston in connection with his distribution of child pornography, discovered by undercover agents. According to an affidavit filed in support of a previously issued complaint, on May 16, 2014, law enforcement discovered that Kessler was utilizing a public file sharing program to post what appeared to be child pornography. On Sept. 2, 2014, a search warrant was executed at Kessler’s Plymouth residence and a computer, various digital devices, hard drives, and other media storage devices were seized and determined to contain multiple images and videos of child pornography. Additionally, 14 unsecured firearms (many of them loaded), various caliber ammunition, boxes of fireworks, detonator cords, remote firing switches, and hand written journals were observed. Kessler was arrested following the execution of the search warrant and is currently held in federal custody.
The charge of distribution of child pornography provides a maximum sentence of 20 years in prison, a minimum mandatory term of five years, and a lifetime of supervised release. The charge of possession of child pornography provides a maximum sentence of 10 years in prison, and a lifetime of supervised release. 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; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Plymouth Police Chief Michael E. Botieri, made the announcement. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crime Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Pine Ridge Man Indicted for Assaulting A Federal OfficerRead the Press Release
United States Attorney Brendan V. Johnson announced that a Pine Ridge, South Dakota, man has been indicted by a federal grand jury for Assault on a Federal Officer.
Jerry Jesse Bear Shield, Jr., age 34, was indicted on September 22, 2014. He appeared before U.S. Magistrate Judge Veronica Duffy on September 26, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 20 years’ imprisonment and/or a $250,000 fine, 3 years’ supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that on August 6, 2014, at Pine Ridge, Bear Shield assaulted an Oglala Sioux Tribe police officer who was attempting to arrest him.
The charge is merely an accusation and Bear Shield is presumed innocent until and unless proven guilty.
The investigation was conducted by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Bear Shield was released pending trial. A trial date has not been set.
Northern California Real Estate Investor Agrees to Plead Guilty to Bid Rigging and Fraud at Public Foreclosure AuctionsRead the Press Release
A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.
Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Gernot Sebastian Zepernick of Concord, Calif. To date, 47 individuals have agreed to plead or have pleaded guilty, as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.
According to court documents, beginning as early as November 2008 until about January 2011, Zepernick conspired with others not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa County. Zepernick was also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected Contra Costa County properties sold at public auctions, to make and receive payoffs, and to divert money to co-conspirators that would have otherwise gone to mortgage holders and other beneficiaries by holding second, private auctions open only to members of the conspiracy. The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions. The private auctions often took place at or near the courthouse steps where the public auctions were held.
“Collusion at the foreclosure auctions created an unfair playing field where the conspirators pocketed illegal payoffs at the expense of lenders and distressed homeowners,” said Brent Snyder, Deputy Assistant Attorney for the Antitrust Division’s criminal enforcement program. “The division will continue to investigate and prosecute local cartels that corrupt the competitive process.”
The department said that the primary purpose of the conspiracies was to suppress and eliminate competition and to conceal payoffs in order to obtain selected real estate offered at Contra Costa County public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner. These conspirators paid and received money, according to the court documents, that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.
“These charges represent another significant success in our ongoing fight against the corrupt practices and illegal activities central to this long running bid-rigging scheme,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office. “The FBI will continue to aggressively investigate real estate-related frauds and other violations of federal law which victimize distressed homeowners and financial institutions through the exploitation of the housing crisis.”
A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million. A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine. The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.
Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California. These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, or call the FBI tip line at 415-553-7400.
Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 93 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**
Nicaraguan Man, Norwin Castellon-lopez, Pleads Guilty to Illegally ReentryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that NORWIN CASTELLON-LOPEZ, age 32, a citizen of Nicaragua who recently resided in New Orleans, pled guilty yesterday to a one-count indictment for illegal reentry of removed alien.
According to the indictment, on or about July 29, 2014, CASTELLON-LOPEZ was found in the United States after having been officially deported and removed on or about December 22, 2010.
CASTELLON-LOPEZ faces a maximum term of imprisonment of two years and a fine of $250,000, or the greater of twice the gross gain to the defendant, one year supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Carl J. Barbier set sentencing for December 11, 2014.
U.S. Attorney Polite praised the work of the Department of Homeland Security/Immigration and Custom Enforcement and Removal in investigating this matter. Assistant United States Attorney Spiro G. Latsis is in charge of the prosecution.
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New Jersey Man, Stanley Zdon, Iii, Sentenced to 18 Years for Conspiracy to Produce Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that STANLEY ZDON, III, age 28, a resident of Tuckerton, New Jersey, was sentenced today for conspiracy to produce child pornography
U.S. District Judge Susie Morgan sentenced ZDON to 18.25 years imprisonment, supervised release for life, and ZDON will have to register as a sex offender.
According to court documents, in November 2013, ZDON was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that ZDON conspired with Jonathan Johnson, the administrator of a multi-national child pornography website, to create and post videos depicting the sexual exploitation of children on the Internet. ZDON has been in custody since his arrest.
U.S. Attorney Polite stated, “Stanley Zdon is the latest defendant brought to justice as a result of Operation Roundtable. The U.S. Attorney’s Office and Homeland Security Investigations will remain vigilant in identifying all those involved in the creation and circulation of these hideous images depicting the sexual exploitation of children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised Homeland Security Investigations in investigating this matter. Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant United States Attorney Brian M. Klebba is in charge of the prosecution.
Mount Vernon Woman Pleads Guilty to Health Care FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today, that Margaret R. Teriet, 32, of Mount Vernon, Illinois, pled guilty to a one-count indictment charging that she engaged in a scheme to commit health care fraud. Sentencing has been set for January 15, 2015, in United States District Court in Benton, Illinois. Teriet will face up to 10 years in prison, a fine of up to $250,000, and up to 3 years of supervised release.
During her plea hearing, Teriet admitted that she had submitted false and fraudulent bills in relation to her alleged performance of personal assistant services in the Home Services Program, a Medicaid Waiver Program designed to allow individuals to stay in their homes instead of entering a nursing home. Teriet admitted to falsely billing the program between April 30, 2012 and December 31, 2012, when she purportedly rendered personal assistant services to an individual when she, in fact, did not. As a result, Teriet improperly received payments for services not performed.
The investigation was conducted by the U.S. Department of Health and Human Services, Office of Inspector General and the Illinois State Police, Medicaid Fraud Control Bureau. The case is being prosecuted by Assistant United States Attorney William E. Coonan and Special Assistant United States Attorney Michael J. Hallock.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Mobile County Man Sentenced to 130 Months Incarceration After Conviction for Drug CrimeRead the Press Release
The United States Attorney Kenyen R. Brown announces that Anthony S. King, a 35 year old resident of Mobile, Alabama, was sentenced today. Mr. King pled guilty on February 5, 2014, to Possession with intent to distribute 226 grams of cocaine. Mr. King received a sentence of 130 months incarceration followed by three years of supervised release. His sentence was enhanced based, in part, on two prior federal felony drug distribution convictions that qualified him as a Career Offender.
The Mobile, 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, Gina S. Vann.