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24 September 2014
Police Officer in Fulton, New York, Pleads Guilty to Assaulting a Man in His CustodyRead the Press Release
Joseph Arigo, 47, a sergeant with the Fulton Police Department in Fulton, New York, pleaded guilty today in federal court to one count of deprivation of rights under color of law for beating a handcuffed man inside the Fulton police station.
According to court documents filed in connection with his guilty plea, Arigo was sitting at the sergeant’s desk on June 28, 2014, when a handcuffed man, G.B., was brought into the police station. G.B. was yelling, but was not physically threatening any officers or himself. Arigo pulled the video camera out of the wall to stop it from recording, walked into the room where G.B. was being held, shoved his head into the bench, and punched him in the head multiple times. G.B. suffered cuts and bruising, lost consciousness, and required seven stitches. After the incident, Arigo lied to his supervisors as well as in two official reports in an attempt to conceal his actions.
Sentencing is set for Jan. 23, 2015, and Arigo faces a maximum sentence of 10 years in prison.
This case was investigated by the Syracuse Resident Agency of the Albany Division of the FBI and is being prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.
Plano Gymnastics Coach Sentenced for Child ExploitationRead the Press Release
Department of Justice
Office of Public AffairsPLANO, Texas – A 26-year-old Plano gymnastics instructor has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Lyndsey Ryan Cox, also known as Coach Wes, pleaded guilty on June 17, 2014 to a charge of coercion or enticement and was sentenced to 120 months in federal prison today by U.S. District Judge Richard Schell.According to information presented in court, in July 2013, Cox used his cellular phone to entice or coerce a minor to engage in sexual intercourse. Cox was indicted by a federal grand jury on Aug. 15, 2013 and charged with child exploitation violations.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the FBI, Plano Police Department and Collin County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Tracey M. Batson.Pittsburgh Heroin Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
PITTSBURGH - A Pittsburgh man has pleaded guilty and been sentenced in federal court to 60 months imprisonment followed by three years supervised release on his conviction of violating federal narcotics laws, as well as violating the terms of his supervised release from a prior federal firearms conviction, United States Attorney David J. Hickton announced today.
United States District Judge Terence F. McVerry imposed the sentence on Floyd Lane, 37.
According to information presented to the court, on or about June 27, 2013, Lane, who was on federal supervised release as a result of a prior conviction for being a felon in possession of a firearm, was found in possession of nine bricks of heroin. A subsequent search of his residence revealed an additional 69 bricks of heroin. One brick of heroin is comprised of 50 stamp bags of heroin. Additionally, Lane forfeited $6,302 in illegal drug proceeds to the government.
Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Pittsburgh Bureau of Police and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Lane.
Philadelphia Resident Charged with Illegal ReentryRead the Press Release
An indictment was unsealed today charging Eliazar Pineda-Castellano, 32, of Philadelphia, PA, with reentry after deportation and illegal alien in possession of firearm, announced United States Attorney Zane David Memeger.
If convicted, the defendant faces a maximum possible sentence of 12 years imprisonment, a three-year term of supervised release, a $500,000 fine, and a $200 special assessment.
The case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”) and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Ewald Zittlau.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Periodontist Sentenced to Probation with Home Detention, Community Service for Tax FraudRead the Press Release
PITTSBURGH - A Pittsburgh resident was sentenced in federal court today in connection with his plea of guilty to filing a false income tax return, United States Attorney David J. Hickton announced today.
Periodontist Charles W. Schwimer, was sentenced by United States District Judge Arthur J. Schwab to three years of probation which includes six months of home confinement with electronic monitoring, a $20,000 fine, 300 hours of community service to be performed in dental facilities for the disadvantaged, and restitution in an amount yet to be determined by the Internal Revenue Service.
In connection with the sentencing Judge Schwab stated that Schwimer’s fraudulent conduct had been discovered during the course of a routine civil audit by the IRS in 2010. The court noted that the audit, and subsequent investigation, had shown that Schwimer engaged in fraudulent conduct over the period 2007 through 2009 through a pattern of deception and lies with regard to his income tax obligations. Schwimer pled guilty to filing a false income tax return for the year 2009. The return was false in that Schwimer had included approximately $29,000 in deductions for business expenses in connection with his dental practice on his tax return which were, in fact, purely personal expenditures that were not business related. The return was also false in that he failed to report cash that he had received directly from his employees who in turn had received cash payments from the patients of his dental practice.
The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Schwimer.
Pennsylvania Man Sentenced to 14 Months in Prison for Possession of Child PornographyRead the Press Release
WASHINGTON – Austin Santee, 22, of Shippensburg, Pa., was sentenced today to 14 months in prison for possession of child pornography, announced U.S. Attorney Ronald C. Machen Jr., Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Santee pled guilty to the charge in May 2014 in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable James E. Boasberg. Upon completion of his prison term, Santee will be placed on five years of supervised release. He also must register as a sex offender for a minimum of 15 years. During his supervised release, Santee is subject to monitoring of computer and Internet use and restrictions on contact with minors. He also must undergo sex offender testing and treatment.
According to the government's evidence, on Feb. 18, 2014, Santee contacted an undercover officer with the FBI's Child Exploitation Task Force, who had posted an ad on a website known to be frequented by individuals who have a sexual interest in children. Over the next few days, Santee engaged in text message conversations with the undercover officer, whom the defendant believed was the father of an under-aged girl. During the course of their communications, Santee sent the undercover officer approximately eight images depicting child pornography. Law enforcement subsequently obtained a warrant for Santee’s arrest and apprehended him on Feb. 27, 2014. Pursuant to a search of Santee’s cellular telephone, law enforcement discovered the images depicting child pornography that were sent to the undercover officer, along with approximately 230 unique files depicting child pornography.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute those who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the sentence, U.S. Attorney Machen, Assistant Director in Charge McCabe, and Chief Lanier praised the work of the MPD Detectives and Special Agents of the FBI Child Exploitation Task Force. They also commended Assistant U.S. Attorney Cassidy Kesler Pinegar, who prosecuted the case.
14-216Orlando Man Sentenced to More Than 24 Years for Distributing and Possessing Child PornographyRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza sentenced Louie Anthony Salemi (33, Orlando) yesterday to 19 years and seven months in federal prison for distribution of child pornography, to be followed by a consecutive term of four years and 10 months’ imprisonment for possession of child pornography. He was also sentenced to a lifetime of supervision. Salemi pleaded guilty on May 2, 2014.
According to court documents, pursuant to a search warrant, the FBI conducted a forensic examination of Salemi’s cell phone and computer. More than more than 3,200 images and 20 videos of child pornography were found on his devices, all of which depicted prepubescent children. The forensic examination also determined that Salemi had distributed child pornography at least 79 times.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Christopher LaForgia.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Omaha Man Sentenced to 46 months in Prison for Being a Convicted Felon in Possession of a Firearm and Ammunition.Read the Press Release
United States Attorney Deborah R. Gilg announced that Cameron G. Beck, 27, of Omaha, Nebraska, was sentenced on September 23, 2014, to 46 months in prison by United States District Judge Lyle Strom. Beck was indicted after a search warrant executed on his residence located a 7.62 rifle with one drum magazine capable of holding over 50 rounds of ammo, one 30 round magazine with 30 rounds of ammo, and 3 empty handgun magazines. Beck is a convicted felon for aggravated driving while intoxicated 3rd offense. After serving his sentence, Beck will be required to serve a Term of Supervised Release of 3 years.
This case was the result of an investigation by the Nebraska State Patrol.
Oklahoma City Man Pleads Guilty to Drug Conspiracy (Methamphetamine Distribution)Read the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that CORNELL TYLEIZ HARVEY, 29, of Oklahoma City, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Section 846.
The charges arose from a joint investigation by the Drug Enforcement Administration, Bureau of Indian Affairs, McAlester Police Department, the Muskogee Police Department, the Checotah Police Department, the Eufaula Police Department, the Stigler Police Department, Districts 18, 23, and 25 District Attorney’s Drug Task Force, the Oklahoma Highway Patrol, the Okmulgee County Sheriff’s Office, the McIntosh County Sheriff’s Office, the Pittsburg County Sheriff’s Office, the Oklahoma Department of Corrections, United States Department of Homeland Security, and the United States Marshal Service. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Indictment alleged that from in or about April 2003 to on or about April 15, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant, knowingly conspired to possess with the intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report.
The statutory range of punishment is not less than 10 years or more than Life imprisonment and/or up to a $10,000,000.00 fine. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Shannon Henson represented the United States.
Nixa Contractor Sentenced or Stealing $73,000 from Elderly Tornado VictimsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Nixa, Mo., contractor who was hired to repair tornado damage at the Joplin residence of an elderly couple was sentenced in federal court today for a fraud scheme in which he stole more than $73,000.
Terry Alton Parker, 59, of Nixa, was sentenced by U.S. Chief District Judge Greg Kays to five years and eight months in federal prison without parole. The court also ordered Parker to pay $34,420 in restitution, in addition to the $38,640 in restitution that Parker paid prior to today’s hearing.
On Sept. 26, 2013, Parker pleaded guilty to bank fraud, wire fraud and money laundering.
Parker operated Alliance Contracting of Nixa, LLC, and was hired by a Joplin, Mo., resident to repair significant damage to his house caused by the May 22, 2011, tornado that destroyed a large part of Joplin. The victim, identified as “H.B.” in court documents, was 84 years old at the time; he was caring for his 88-year-old wife, who required home care and nursing assistance.
Parker agreed to repair the victim’s home for a price that was to be no more than the amount H.B. was reimbursed by his insurance company for the damage. There was no written contract, and most of the money paid to Parker was disbursed based on Parker’s verbal requests for funds. Between June 13, 2011, and Feb. 2, 2012, H.B. paid Parker a total of approximately $80,300 for his services.
After being hired, Parker was at H.B.’s home on a regular basis from June 2011 through February 2012. Parker befriended H.B. and soon began using his downstairs office area as his own office. According to court documents, Parker also began to store equipment in H.B.’s storage shed, was allowed to interact directly with the insurance company, collected H.B.’s mail each day and brought a caregiver into the home to care for H.B.’s wife. When a caregiver expressed concern regarding Parker’s taking advantage of the victim, according to court documents, Parker attempted to intimidate her by stating that she should be careful how she treated him (Parker), because one day H.B.’s house would belong to him.
In November 2011, without H.B.’s knowledge or permission, Parker stole a check from H.B.’s checkbook and wrote a check to himself for $38,640. Parker forged H.B.’s signature and deposited the check into his own bank account.
Parker persuaded H.B., who did not own a computer, to get Internet access at his home so Parker could order supplies online and conduct other business via the Internet. H.B. agreed to pay for the service. Parker set up an online banking account for H.B.’s checking account, without H.B.’s knowledge or permission, and directed all bank statements and other notifications from the bank to be delivered to an e-mail address that Parker set up in H.B.’s name (also without his knowledge). Parker established a PayPal account, without H.B.’s knowledge or permission, which was linked to H.B.’s checking account.
Over the next three months, Parker electronically siphoned $34,420 from H.B.’s checking account into the PayPal account. Most of those funds ($32,545) were then transferred from H.B.’s PayPal account to Parker’s own PayPal account.
In January 2012, loss prevention personnel from PayPal attempted to verify the validity of one of Parker’s transactions. Parker called the PayPal call center located in Omaha, Neb., and in a recorded conversation, falsely and fraudulently identified himself as H.B.
On Feb. 27, 2012, H.B. visited the bank to ask why he was no longer receiving paper bank statements. Prior to departing for the bank, he told Parker where he was going, and noticed that Parker was visibly shaken. At the bank, H.B. learned that someone had discontinued his receipt of paper bank statements online, and had electronically transferred $34,420 out of his account. (He later discovered that Parker also stole and forged the $38,640 check.)
Before H.B. returned home, Parker had fled to Texas after stealing various items of H.B.’s personal property. Before departing Missouri, Parker confronted H.B.’s daughter; he falsely claimed to her that H.B. owed him money. Parker also filed a false complaint with the Missouri Department of Health and Senior Services, alleging that H.B. had abused his wife by striking her and failing to give her proper medication as prescribed by her physician. (The complaint was investigated and found to be not substantiated.)
Not counting the stolen items of personal property (which are not a part of this case), Parker stole a total of approximately $73,060 from H.B.
Parker has a prior federal conviction in this district for wire fraud and theft from an FDIC-insured institution. In that case, an eight-count indictment was returned by the federal grand jury on Sept. 12, 2002, charging Parker with five counts of wire fraud and three counts of bank fraud over the course of three years, from 1998 through 2001. The scheme charged in that case involved Parker’s falsification of multiple invoices for goods and services in order to obtain advance payments under a construction contract, causing an aggregate loss of $46,627 to a company called DMZ, LLC. That case also involved his filing of a false police report and subsequent alteration and deposit of a $2,075 insurance check, which he increased to $20,075, causing a loss of $18,000 to Empire Bank. Parker pleaded guilty to all of the conduct and was sentenced on Jan. 30, 2003, to a term of probation and payment of restitution.
This case was prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by the FBI and the Joplin, Mo., Police Department.
Nineteen Indicted for Cashing Stolen United States Treasury Checks and Credit Card FraudRead the Press Release
ATLANTA – A federal grand jury has indicted 19 people for stealing government money, credit card fraud, and aggravated identity theft, based on their involvement in an extensive scheme to steal and cash United States Treasury checks and use fraudulently obtained credit cards.
“Fraud and identity theft crimes are now perceived as lucrative alternatives for criminal organizations,” said United States Attorney Sally Quillian Yates. “People who commit these crimes prey upon unsuspecting victims, stealing the victims’ money and compromising their livelihoods, sometimes causing lifelong financial consequences.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “These indictments and arrests are a direct result of an extensive 16 month multi-agency investigation focusing on a network of individuals who facilitated their criminal enterprise through various fraudulent schemes and other criminal activities. The elaborate networking of this group allowed them to expand their criminal activities throughout multiple states as they increased their victim base. The FBI would like to extend its gratitude to those participating law enforcement agencies at all levels as this investigation now moves into the court system for prosecution.”
According to United States Attorney Yates, the charges, and other information presented in court: From approximately June 2012 until September 2014, the defendants worked together to steal and then cash United States Treasury checks from various sources, including the United States mail. The checks were originally issued to those entitled to the federal funds, including taxpayers receiving refunds, retired federal employees receiving pension benefits, military families, and Social Security beneficiaries receiving social security and disability payments.
Each defendant had a critical role in the fraud scheme. First, the indictment alleges that check suppliers, such as Erica Willis and Corey Howell, obtained and sold the stolen checks to other defendants. Check purchasers, including Hussain Abdullah, Asad Abdullah, Hudhayfah Abdullah and Hafid Abdur-Rabbani, were frequent customers of the check suppliers and purchased checks by either paying 25% of the check’s face value or splitting the proceeds from the check in half with the supplier. After purchasing the stolen checks, the defendants would pay identification manufacturers, like Ibrahim Abdur-Rabbani and Khalil Majeed, to make fake Georgia driver’s licenses matching the names and addresses of the victims, but containing photos of “check runners.” In exchange for a fee, the “runners” would use the fake driver’s licenses to cash the stolen checks at retail locations throughout the Atlanta, Ga., area, such as Wal-Mart, Kroger, and Publix.
In addition to the check-cashing scheme, the indictment charges several defendants with a separate credit card fraud scheme against Wal-Mart and Sam’s Club. Between April 2011 and November 2011, defendants Asad Abdullah, Mikal Majeed, and Billee Cosby obtained and used counterfeit identification documents to pose as real Sam’s Club members. After presenting the fraudulent documents at various Sam’s Club locations in Georgia, Tennessee, and Alabama, the defendants requested replacement store credit cards in the names of the victims, which the defendants then used to buy gift cards, gas, groceries, and other items at various Sam’s Club and Wal-Mart locations.
Across the two schemes, the defendants defrauded the federal government and Wal-Mart/Sam’s Club out of over approximately $350,000.
The 19 defendants have been indicted on multiple charges of theft of government funds, credit card fraud, related conspiracy offenses, and aggravated identity theft. The indictment also contains other charges against individual defendants, ranging from passport fraud to illegally obtaining a firearm. The defendants were indicted by a federal grand jury on September 11, 2014, and some have already made their initial appearances before United States Magistrate Judge Alan J. Baverman.
Those indicted and arrested, or already in custody, and their charges include (all from Atlanta, except where otherwise indicated):
- Hussain Abdullah, 33, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, and Conspiracy to Commit Hobbs Act Robbery.
- Hudhayfah Abdullah, 31, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, and Lying on Required Form to Purchase a Firearm.
- Asad Abdullah, a/k/a “Baldhead,” 36, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, Conspiracy to Commit Access Device Fraud, and Access Device Fraud.
- Hafid Abdur-Rabbani, 36, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Ibrahim Abdur-Rabbani, 32, of Decatur, Ga., conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Khalil Majeed, 34, conspiracy to Commit Theft of Government Funds, Theft of Government Fund, and Aggravated Identity Theft.
- Sayeed Valdez, 37, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Erica Willis, 35, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Dexter Willis, a/k/a Qadir Monies, a/k/a “Dent,” 35, conspiracy to Commit Theft of Government Funds.
- Antonio Slaton, 36, conspiracy to Commit Theft of Government Funds.
- Cory Howell, 42, conspiracy to Commit Theft of Government Funds.
- Damion Davis, 30, of College Park, Ga., conspiracy to Commit Theft of Government Funds.
- Ali Al-Amin, 35, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Zakariyah Abdullah, 34, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, Aggravated Identity Theft, and Improper Use of a Passport.
- Billee Cosby, 33, conspiracy to Commit Access Device Fraud, Access Device Fraud, and Aggravated Identity Theft.
- Mikal Majeed, 32, of Ellenwood, Ga., conspiracy to Commit Access Device Fraud, Access Device Fraud, and Aggravated Identity Theft.
- Muhajid Ahmad, 32, conspiracy to Commit Theft of Government Funds, Theft of Government Funds, and Aggravated Identity Theft.
- Joann Drigo, 26, conspiracy to Commit Theft of Government Funds.
- Jasmine Proctor, 19, conspiracy to Commit Theft of Government Funds, and Theft of Government Funds.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. Assistance in this case has been provided by the following federal agencies: Federal Air Marshal Service; United States Customs and Border Protection; Bureau of Alcohol, Tobacco, Firearms, and Explosives; IRS-Criminal Investigations; United States Secret Service; United States Postal Service; and the Department of Homeland Security. The following state and local agencies have also assisted in this case: Georgia Bureau of Investigation; Georgia Office of Consumer Protection; Georgia Department of Corrections; Atlanta Police Department; Woodstock Police Department; Fulton County Sheriff’s Office; Henry County Police Department; Gwinnett County Police Department; Dunwoody Police Department; Brookhaven Police Department; Sandy Springs Police Department; DeKalb County Police Department, and Chamblee Police Department.
Assistant United States Attorneys Kim S. Dammers and Nekia S. Hackworth are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
New Mexico Man Charged in Passport Fraud InvestigationRead the Press Release
DES MOINES, IA B United States Attorney Nicholas A. Klinefeldt announced that a grand jury sitting in the Southern District of Iowa returned an indictment charging Neil Stammer of Albuquerque, New Mexico, with passport fraud in violation of 18 U.S.C. § 1542 and aggravated identity theft in violation of 18 U.S.C. § 1028A(a)(1). Stammer is currently in custody on pending charges in Albuquerque and is not expected to make his initial appearance in the Southern District of Iowa until the conclusion of the pending charges in New Mexico. Stammer faces a potential sentence of up to ten (10) years imprisonment and/or a $250,000 fine if convicted of passport fraud, and a consecutive term of imprisonment of two (2) years if convicted of aggravated identity theft.
The investigation was led by the Diplomatic Security Service.
In accordance with the Iowa Rules of Professional Conduct, the public is reminded that an indictment and a complaint are merely accusations, and that the defendants are presumed innocent until and unless proven guilty. Additionally, because this matter is pending in the United States District Court, the United States Attorney’s Office does not anticipate making any further comment or statement at this time.
(Download Press Release )
Mono County Woman Sentenced for Embezzlement from Bridgeport BankRead the Press Release
SACRAMENTO, Calif. — Roxanna Foley, 53, of Bridgeport, was sentenced today by United States District Judge Kimberly J. Mueller to 30 months in prison for embezzlement by a bank employee and ordered to pay $315,000 in restitution, United States Attorney Benjamin B. Wagner announced.
Foley worked at Eastern Sierra Community Bank (ECSB) in Bridgeport. According to the plea agreement, starting in November 2011, bank officials noticed discrepancies with the Bridgeport branch of ESCB. On March 19, 2012, managers from the bank made an unannounced visit to Foley’s branch to investigate a suspicious $90,000 transaction. After a review of the local bank’s records, officials identified $90,000 in misplaced funds, as well as $6,000 missing from Foley’s teller drawer.
During the surprise inspection, Foley admitted to taking over $300,000 from the bank. A later review of the ECSB’s accounts uncovered $322,000 in missing funds, as well as multiple electronic transactions moving money between accounts made by Foley. Official also learned that Foley had been circumventing normal banking procedures at ECSB, including single-handedly taking over all counting and auditing of ECSB accounts when dual-counting procedures were required.
At sentencing, Judge Mueller found that the loss in this case was “significant,” and that Foley “succumbed to the temptation” of having access to such funds. In sentencing Foley, Judge Mueller sought to punish Foley for her conduct and stated that a “period of time in a federal facility will serve as a deterrent” to Foley and others.
This case was the product of an investigation by the Mono County District Attorney’s Office, the Mono County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon prosecuted the case.Mobile County Man Sentenced for Felon in Possession of A FirearmRead the Press Release
United States Attorney Kenyen R. Brown announces that Daniel Norman Howard, Jr. was sentenced on September 22, 2014 to twenty-seven months confinement by United States District Court Judge Charles R. Butler. Howard plead guilty to being a Felon in Possession of a Firearm. Howard’s prior felony conviction was for Possession of Cocaine in the Circuit Court of Mobile County, Alabama, on or about July 27, 1999. The firearm Howard possessed was a loaded FNP, Model ACP .45 caliber handgun.
The case was investigated by the Mobile County Sheriff’s Office, Narcotics Division.
Michael "the Situation" and Marc Sorrentino Indicted for Tax Crimes Involving $8.9 Million IncomeRead the Press Release
NEWARK, N.J. - Television personality Michael “The Situation” Sorrentino and his brother Marc Sorrentino are expected to appear in federal court this afternoon to face an indictment alleging they did not properly pay taxes on $8.9 million in income Michael Sorrentino received from promotional activities, U.S. Attorney Paul J. Fishman announced.
Michael Sorrentino and his brother Marc Sorrentino are charged with one count of conspiracy to defraud the United States. Marc and Michael Sorrentino also are charged with three and two counts, respectively, of filing false tax returns for 2010 through 2012. Michael Sorrentino faces an additional count for allegedly failing to file a tax return for 2011. The defendants are expected to surrender to special agents of IRS-Criminal Investigation and United States Marshals prior to their court appearance before U.S. Magistrate Judge Steven C. Mannionin Newark federal court.
“According to the indictment, Michael and Marc Sorrentino filed false tax returns that incorrectly reported millions made from promotions and appearances,” said U.S. Attorney Paul J. Fishman. “The brothers allegedly also claimed costly clothes and cars as business expenses and funneled company money into personal accounts. The law is absolutely clear: telling the truth to the IRS is not optional.”
“Most individuals file truthful tax returns and pay their fair share of taxes. However, as alleged in today's indictment, rather than living in reality and reporting their true income, Michael Sorrentino and his brother Marc created the illusion that they earned less income by filing false and fraudulent tax returns,” stated Jonathan D. Larsen, Acting Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office. “No matter what your occupation or status in life, if you attempt to cheat on your taxes for personal financial gain, you face real consequences including criminal prosecution and a possible prison sentence.”
Both Michael and Mark Sorrentino are expected to be arraigned on the indictment before U.S. District Judge Susan D. Wigenton in Newark federal court on Oct. 6, 2014.
According to the indictment returned today: Michael Sorrentino is a reality television personality who first gained fame on “The Jersey Shore,” which appeared on the MTV network. Marc Sorrentino is Michael’s brother and manager. The pair conspired to fail to pay all federal income tax owed on approximately $8.9 million earned by Michael Sorrentino between 2010 and 2012. This income was largely received by two companies controlled by the brothers: MPS Entertainment, LLC and Situation Nation, Inc.
As part of the conspiracy, the brothers submitted or caused to be submitted to the IRS false documents which understated the gross receipts received by the brothers and the two companies. The brothers also submitted false personal tax returns which failed to report all of the income they received, and Michael failed to file a personal tax return in 2011, despite earning $1,995,757 that year.
As part of the conspiracy, the brothers also fraudulently claimed millions of dollars in personal expenses as business expenses, including payments for high-end vehicles and clothing, personal grooming expenses, and distributions – or direct payments – from the businesses to personal bank accounts.
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine; the filing false tax return counts each carry a maximum potential penalty of three years in prison and a $250,000 fine. The count charging Michael Sorrentino with failing to file a tax return carries a maximum potential penalty of one year in prison and a $100,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Larsen, with the investigation.
The government is represented by Assistant U.S. Attorneys Evan S. Weitz and Jonathan W. Romankow of the U.S. Attorney's Office Criminal Division in Newark, as well as Trial Attorney Tino Lisella of the Tax Division of the United States Department of Justice.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.14-341
Defense counsel:
Michael Sorrentino: Richard Sapinski Esq., Newark, N.J.
Marc Sorrentino: Chris Adams Esq., Colts Neck, N.J.Sorrentino, Michael and Marc Indictment
Memphis Woman Sentenced to Six Years in Federal Prison for Role in Tax Fraud Identity Theft SchemeRead the Press Release
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, and Christopher A. Henry, Special Agent in Charge, IRS-Criminal Investigation, announced today that Cheryl Wright, 30, of Memphis, Tenn., was sentenced by United States District Judge John T. Fowlkes, Jr. to serve 72 months (six years) in prison followed by three years of supervised release, and is jointly liable with co-conspirator Nakita Brooks to pay restitution in the amount of $690,767.84 to the Internal Revenue Service (IRS).
“Through her fraudulent tax scheme, Cheryl Wright victimized the IRS and the people whose identities she stole,” said United States Attorney Stanton. “And while she may have avoided paying taxes and received hundreds of thousands of dollars in refunds she was not owed, she will now pay the ultimate price of spending the next six years in a federal prison for her criminal acts.”.
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Christopher A. Henry, Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentencing should serve as a strong warning to those who are considering similar conduct. Law enforcement is serious about investigating these crimes and holding those who would defraud the government accountable.”
On April 22, 2014, Wright pled guilty to one count of a three-count indictment charging her and co-conspirator, Nakita Brooks, 31, with conspiracy to file false tax returns, theft of public money and identity theft. According to the facts presented in the indictment and revealed during sentencing hearings, beginning as early as February 2010 through at least November 2011, Brooks and Wright filed hundreds of false tax returns using the personal identifying information of deceased individuals, including social security numbers.
In addition to filing false returns, Wright and Brooks also set up tax return services using stolen identities as the preparers of the returns. In 2010, the name of the company used to prepare the returns was Rattler’s Tax Pals. In 2011, the name of the company used to prepare the returns was Taxes Express. Three individuals, including a nine-year old girl from Indiana, had their tax information fraudulently listed as the preparers for these companies.
Brooks was sentenced July 11, 2014, by U.S. District Judge John T. Fowlkes, Jr., to serve 10 years in federal prison, to be followed by three years of supervised release, and ordered to pay restitution of $690,767.84 to the Internal Revenue Service (IRS).
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney David Pritchard represented the government.
Madill Man Sentenced to 96 Months for Possession of Material Involving Sexual Exploitation of MinorsRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL LYNN CARTER, age 61, of Madill, Oklahoma, was sentenced to 96 months imprisonment, followed by 5 years of supervised release for Possession of Certain Material Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and 2252(b)(2).
The charge arose from an investigation by the Federal Bureau of Investigation. CARTER was indicted in March 2014 and pled guilty in May 2014.
The Indictment alleged that from between in or about September 2013 and December 20, 2013, in the Eastern District of Oklahoma, the defendant did knowingly possess and attempt to possess matters which contained visual depictions and the production of said visual depictions involved the use of a minors engaging in sexually explicit conduct which were then transported in interstate commerce by a computer.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Edward Snow represented the United States.
Lighting Contractor Charged with Agreeing to Bribe Broward Public OfficialRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of a one-count information charging William E. Pino, 60, of Miami, with offering and agreeing to give something of value to a public official with the intent to influence or reward said public official in connection with a transaction or series of transactions and thereby committing bribery in programs receiving federal funds, in violation of Title 18, United States Code, Section 666. Pino will make his initial appearance on September 30, 2014 at 11:00 a.m. before U.S. Magistrate Judge Patrick M. Hunt in Fort Lauderdale.
According to the information, Pino was involved in a number of companies in South Florida that were in the business of installing, repairing and maintaining street lights, traffic signals, and traffic systems and the sale of products needed to make such installations and repairs, such as light poles. From in or about April 2012 through on or about June 27, 2012, Pino met with a confidential informant who advised Pino that there were upcoming public works projects in Broward County for traffic systems, traffic signs, street lights and light poles. The informant advised Pino that the informant had a contact in Broward County, but that Pino would need to “take care of” the public official. Pino agreed to “take care of” the public official.
On or about May 24, 2012, Pino was told that the public official had a purchase order for $100,000 in light poles for Pino’s company. Pino agreed to pay the public official $5,000 in exchange for the purchase order containing $100,000 of his light poles. On or about June 27, 2012, there was a meeting between Pino, the informant, and the public official in Plantation. Pino was handed a purchase order for his company to provide Broward County with $100,000 worth of light poles and Pino then handed the public official an envelope containing $5,000 in U.S. currency.
If convicted, Pino faces a statutory maximum term of 10 years in prison and a fine of up to $250,000.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Leader of A Methamphetamine Conspiracy Is Sentenced to More Than 22 Years in Federal PrisonRead the Press Release
DALLAS — The last defendant convicted in a drug conspiracy that distributed large quantities of methamphetamine in north Texas was sentenced yesterday in federal court in Dallas. Jesus Velasquez, aka “Chuy,” 44, was sentenced by U.S. District Judge Barbara M.G. Lynn to 270 months (22.5 years) in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Velasquez will also be required to forfeit the proceeds of his criminal activity, which includes a 2008 Jeep Commander and several firearms.
Velasquez and 8 codefendants were charged in the drug conspiracy that was outlined in a federal indictment returned by a grand jury in Dallas in January 2013. Velasquez pleaded guilty in June 2013 to one count of conspiracy to distribute 50 grams or more of methamphetamine. All defendants received federal prison sentences ranging from 46 months to 270 months.
According to documents filed in the case, Velasquez admitted that on multiple occasions between April 2011 and June 30, 2011, he distributed methamphetamine in exchange for payment in the Dallas area. Specifically, Velasquez admitted that he was intercepted over a court-authorized wiretap discussing narcotics transactions with co-defendants Gregory Guysinger, Miguel Velasquez, aka “Ramone,” and Heriberto Luna, aka “Beto.”
The Federal Bureau of Investigation (FBI) was in charge of the investigation. The FBI was assisted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Dallas Police Department, the Texas Department of Criminal Justice - Office of the Inspector General (TDCJ-OIG), and the North Texas High Intensity Drug Trafficking Areas (HIDTA) Program.
Assistant U.S. Attorney Phelesa Guy was in charge of the prosecution and Assistant U.S. Attorney John de la Garza handled the forfeiture.
Lawrence Man Pleads Guilty to Embezzling More Than $1 MillionRead the Press Release
TOPEKA, KAN. – A Lawrence man pleaded guilty in federal court Wednesday to embezzling more than $1 million from his company and his business partners, U.S. Attorney Barry Grissom said.
Mark W. Elzea, 55, Lawrence, Kan., pleaded guilty to one count of interstate transportation of stolen funds.
In his plea, Elzea admitted the crime occurred while he was controller and part owner of Pur-O-Zone, a janitorial and cleaning equipment business located in Lawrence. In 2004, Elzea began embezzling funds from Pur-O-Zone and his three business partners who also owned part of the business. The crime came to light in May 2014 when one of the partners was contacted by a vendor about not having received a check. The partners discovered numerous unauthorized checks signed by Elzea and made payable to Cardmember Service Chase Bank in Illinois.
In his plea, Elzea agrees to a forfeiture money judgment and order of restitution in the amount of $1 million.
Sentencing is set for Dec. 19. He faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. Grissom commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.
Lakeland Couple Sentenced for Bank Fraud ConspiracyRead the Press Release
Tampa, Florida – United States District Judge Virginia Covington yesterday sentenced Lakeland residents Jovanna Deshawn Forte (39) and William Boyd Burns (45) each to 51 months in federal prison for conspiracy to commit bank fraud. Both pleaded guilty in May 2014. The Court also entered a money judgment in the amount of $385,450, the proceeds of the bank fraud. Forte and Burns were ordered to pay restitution to Wachovia Bank, SunTrust Bank, and Mid-Florida Federal Credit Union.
According to court documents, Forte and Burns used other individuals’ accounts at local banks to deposit third-party checks that were written to the account holders, in amounts ranging from $1,500 to $3,600. These third-party checks were fraudulent and false when they were deposited by Forte and Burns because the checks were written on closed accounts and accounts that did not have sufficient funds to pay the amount of the check. The checks were deposited into these accounts by ATM, after the financial institution had closed. Forte and Burns then withdrew or attempted to withdraw funds, both in cash and through debit card purchases, that had been credited to the account from the fraudulent check deposits. The withdrawn funds were used for personal expenditures. Forte and Burns were recorded on video surveillance using nearly 200 accounts at three financial institutions. They obtained at least $385,450 in funds from their withdrawals and purchases.
This case was investigated by the U.S. Postal Inspection Service, Florida Department of Law Enforcement, and the Polk County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Justice Department to Review the Shooting of John Crawford IiiRead the Press Release
COLUMBUS – The Civil Rights Division of the United States Department of Justice, the United States Attorney’s Office for the Southern District of Ohio, and the Federal Bureau of Investigation, Cincinnati Field Division, announced today that they will conduct an independent review of the facts and circumstances surrounding the August 5, 2014, fatal shooting of John Crawford III by an officer with the Beavercreek Police Department. The Civil Rights Division, the United States Attorney’s Office, and the FBI have been monitoring the state’s investigation of this case. The Civil Rights Division, the United States Attorney’s Office, and the FBI will conduct a thorough and independent review of the evidence and take appropriate action if the evidence indicates a prosecutable violation of federal criminal civil rights statutes. This is an on-going investigation; therefore, the Department can make no further comment on this case at this time.
Justice Department Sues Regional Tax Preparation Firm's Owner and Franchisees and Managers to Stop Alleged Systematic and Pervasive Tax FraudRead the Press Release
The United States filed eight civil injunction suits in Florida to bar Walner G. Gachette, the founder of Orlando-based tax preparation company LBS Tax Services, seven LBS Tax Services franchisees, and three LBS Tax Services managers from owning, operating, or franchising a tax return preparation business and preparing tax returns for others, the Justice Department announced today.
The seven franchisees and three managers sued are Douglas Mesadieu, Jean R. Demesmin, Kerny Pierre-Louis, Demetrius Scott, Jason Stinson, Wilfrid Antoine, Jacqueline Nunez, Tonya Chambers, Jehoakim Victor and Lauri Rodriguez.
According to the complaints, in 2013, LBS Tax Services operated at least 239 stores (192 owned by the named defendants) in Florida, North Carolina, South Carolina, Georgia, Texas, Tennessee, Alabama and Mississippi. The government also asserts that LBS Tax Services prepared more than 55,000 federal income tax returns in 2013. The complaints allege that, in 2014, some of the defendants’ LBS Tax Services stores began doing business using the names Milestone Tax Services, Tax Giant, AWA Tax, Tax Master Xpress, BPTS Tax Services and Nation Tax Services.
“The public should be able to rely on federal income tax preparers to prepare honest and complete returns,” said Deputy Assistant Attorney General David A. Hubbert for the Justice Department’s Tax Division. “The Internal Revenue Service and the Department of Justice have made it a priority to sue and enjoin tax return preparers who prepare fraudulent returns.”
The suits allege that the defendants target primarily low-income customers with deceptive and misleading advertisements, prepared and filed fraudulent tax returns to falsely increase their customers’ refunds and profit through unconscionable and exorbitant fees — all at the expense of their customers and the U.S. Treasury. One case highlighted in the complaints erroneously suggests that potential customers will receive a tax refund of more than $3,000 “per child.”
According to the complaints, the defendants directed return preparers for LBS Tax Services to, among other things:
• Falsely claim or increase the amount of the Earned Income Tax Credit;
• Claim improper filing status (i.e., head of household for married individuals);
• Fabricate businesses and related business income and expenses;
• Fabricate Schedule A deductions, particularly for unreimbursed employee business expenses; and
• Charge deceptive and unconscionable fees.
Among the many examples cited in the eight complaints are:
A customer in Tampa, Florida, was allegedly waiting at a bus station when he was approached by an LBS Tax Services employee, who offered to drive the customer to an LBS Tax Services store to have his tax return prepared. According to the complaint, despite knowing that the customer did not have a car, LBS Tax Services reported on the customer’s tax return that he had driven his personal vehicle 30,256 miles for business purposes, resulting in a bogus $17,589 unreimbursed employee business expense claimed on the customer’s tax return.
A customer was allegedly approached at a flea market by an LBS Tax Services preparer who told her that she had to file a tax return, showed her a badge, and said that he was a police officer and would not do anything that was wrong. That preparer allegedly prepared the customer’s tax return, on which the preparer falsely claimed that the customer had more than $10,000 in income in order to claim an Earned Income Tax Credit and bogus refund.
Another customer in Houston, Texas, won $250,000 in the lottery in 2012. The LBS Tax Services preparer allegedly claimed several phony deductions to offset that income, including $30,141 in charitable contributions and $10,279 in unreimbursed employee business expenses. The customer’s tax return allegedly claimed a bogus refund in the amount of $8,247.
On the tax return of one Jacksonville, Florida customer, LBS Tax Services allegedly reported that the customer had a mechanic business through which he earned income, when he did not. Allegedly, the customer did not work in 2012, and when he applied for social security disability benefits in 2013, he was denied because based on the income that LBS Tax Services falsely reported on his tax return, he had shown an ability to work.
"Tax return preparers play an important and integral role in our tax system," said IRS Deputy Commissioner for Services and Enforcement John M. Dalrymple. "The IRS and Justice Department are committed to protecting taxpayers and pursuing return preparers engaged in fraud. We encourage taxpayers to carefully select their tax preparer and be careful about misleading promises about refunds."
According to the complaints, the IRS estimates that the tax loss from the defendants’ stores for the 2012 tax year alone is in the tens of millions of dollars. The complaints also requests that the court order the defendants to disgorge the fees that they obtained through their alleged fraudulent tax return preparation.
Return preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Antoine Filed Complaint
Demesmin Filed Complaint
Gachette Filed Complaint
Mesadieu Filed Complaint
Nunez Filed Complaint
Pierre Louis Filed Complaint
Scott Filed Complaint
Stinson Filed Complaint
Justice Department Seeks to Shut Down Philadelphia Tax Return PreparerRead the Press Release
The United States has asked a federal court in Philadelphia to permanently bar Denise Miller Almanza and her business, Denise’s Centro de Servicios, PC, from preparing federal tax returns for others, the Justice Department announced today. According to the complaint, Almanza inappropriately reduces her customers’ income or wrongly claims tax credits on their returns, causing the customers to receive tax refunds or increased refund amounts to which they are not entitled. Almanza and her business have prepared more than 14,000 federal tax returns since 2010, according to the complaint.
The suit, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges that Almanza improperly claims the additional child tax credit on customers’ income tax returns, which allow her customers to receive, on average, over $2,900 in improper benefits per tax return. In total, the complaint alleges that Almanza’s activities over the last four years have potentially cost the U.S. Treasury millions of dollars in lost tax revenue.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
Related Materials:
United States v. Denise Miller Almanza
ComplaintJudges Sentences Pittsburgh Man to 10 Years in Prison for Heroin Trafficking ConspiringRead the Press Release
PITTSBURGH – Andrew Anderson, of Pittsburgh was sentenced to 120 months in prison for conspiring to distribute at least one kilogram of heroin, United States Attorney David J. Hickton announced today.
Anderson, 31, was sentenced in Pittsburgh by United States District Judge Nora Barry Fischer. Judge Fischer also imposed a five-year term of supervised release to follow the prison sentence.
For several months leading up to Feb. 9, 2012, Anderson received hundreds of bricks of heroin and then distributed them in the Pittsburgh area and paid those who supplied him back. On Feb. 9, 2012, members of the Pittsburgh Police and the Pennsylvania State Police conducted a traffic stop of Anderson’s Trailblazer. Anderson and a 10-year-old child were the only occupants of the Trailblazer. The equivalent of about 40 bricks of heroin, with a value of approximately $10,000, along with unburnt marijuana packaged for re-sale, were found inside the Trailblazer. $6,600 in drug trafficking proceeds were subsequently found inside Anderson’s residence.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration in Pittsburgh and New York, the Pennsylvania State Police, the Pittsburgh Bureau of Police, the Allegheny County Police Department, the Pennsylvania Attorney General's Office, the Wilkins Township Police Department, the East Pittsburgh Police Department, the New York Police Department, the Blair County District Attorney's Office, and the Allegheny County District Attorney's Office conducted the investigation leading to the conviction and sentence in this case.
Interpol Washington Spearheads Foreign Terrorist Fighter Program, Serves as Catalyst for Global Information Sharing NetworkRead the Press Release
WASHINGTON—Interpol Washington today announced the formation of a dedicated Interpol Foreign Terrorist Fighter (FTF) program in partnership with the National Security Council (NSC), the Department of Justice (DOJ) and the Department of Homeland Security (DHS).
The program leverages the unique resources Interpol utilizes to combat transnational crime, including its secure, encrypted communications system, its criminal and analytical databases and its system of advisory notices. Through this program, Interpol will provide an unparalleled mechanism for addressing the threat from FTFs by helping to monitor and deter their international movement and interdict them at strategic entry points, where possible. Composed of the National Central Bureaus (NCB) of more than 30 member countries, the program was established in response to the need for a forum for sharing intelligence and best practices on a global scale to combat the threat of foreign terrorist fighters traveling to Iraq and Syria.
“Interpol provides critical leadership in advancing the Justice Department’s efforts to combat terrorism and ensure the safety of all Americans – offering cutting-edge resources, a structure for international cooperation, and strategic tools like Red, Blue and Green Notices for tracing, targeting and apprehending terror suspects,” said Attorney General Eric Holder. “In a world that is increasingly interdependent and interconnected, Interpol helps to defend against a range of evolving challenges by disseminating information, combating crime, and identifying potential threats. And particularly today, with the emergence of groups like ISIL, and the knowledge that some Americans are attempting to travel to countries like Syria and Iraq to take part in ongoing conflicts, Interpol – as the world’s largest international police organization – has a vital role to play in safeguarding our homeland and protecting the American people.”
“The threat posed by foreign fighters is one that is persistent and requires the full cooperation and resources of the international law enforcement community to effectively combat," said Secretary of Homeland Security Jeh Johnson. “We are already working closely with European and other governments to build better information sharing, and we will continue to leverage our partnership with the Interpol, Department of Justice and other international partners to make enhanced and concerted efforts to track foreign fighters who come from or seek to enter the United States.”
The program currently supports a working group that includes Australia, Belgium, Canada, France, New Zealand, Spain, Switzerland, the Netherlands, Turkey, the United Kingdom and the United States, and an international symposia—a multinational database populated with information contributed by and accessible to participating member countries. The criminal intelligence information contained in the database includes detailed identity particulars that are especially valuable to law enforcement and border control authorities in making determinations of the terrorist threat posed by subjects located in, or attempting to enter, their respective jurisdictions.
Interpol Washington played a critical role in the program’s development and is taking the lead on implementing it in the United States by continuing to strategically use Interpol Red Notices to target and apprehend terrorists for prosecution in U.S. courts and Interpol Blue Notices to trace and locate terrorists and others suspected of terrorism-related activity, including those not charged with a particular offense. Further, Interpol Washington is extensively utilizing Interpol Green Notices to publish information about hundreds of foreign nationals previously identified in both Iraq and Afghanistan and involved in terrorist activities. Interpol also offers countries the ability to use its information sharing system to send targeted messages to key partners on terrorist subjects.
“Interpol Washington continues to champion international police cooperation by leading U.S. efforts in the Interpol Foreign Terrorist Fighter program,” said Interpol Washington Director Shawn A. Bray. “Interpol provides a unique set of information sharing solutions for addressing this growing threat. By applying these solutions via its secure global communications network, Interpol member countries send a strong, unified message of engagement against FTFs and those who support them.”
Regional meetings, meetings of the heads of National Central Bureaus and the annual Interpol General Assembly represent additional opportunities for strengthening the FTF program. Finally, Interpol works closely with the United Nations, particularly the Sanctions Committee of the UN Security Council, to publish Special Notices on individuals listed by the Sanctions Committee as belonging to or associated with al Qaeda and the Taliban.
Interpol Washington, a component of the DOJ and co-managed by the DHS, facilitates the sharing of criminal justice, humanitarian and public safety information among Interpol’s 190 member countries and more than 18,000 local, state, federal and tribal law enforcement agencies in the United States. In coordinating international investigative efforts, Interpol Washington works to enhance the safety and security of our nation.
For more information about Interpol Washington, visit: www.justice.gov/interpol-washington.
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Interpol Washington Spearheads Foreign Terrorist Fighter Program, Serves as Catalyst for Global Information Sharing NetworkRead the Press Release
Interpol Washington today announced the formation of a dedicated Interpol Foreign Terrorist Fighter (FTF) program in partnership with the National Security Council (NSC), the Department of Justice (DOJ) and the Department of Homeland Security (DHS).
The program leverages the unique resources Interpol utilizes to combat transnational crime, including its secure, encrypted communications system, its criminal and analytical databases and its system of advisory notices. Through this program, Interpol will provide an unparalleled mechanism for addressing the threat from FTFs by helping to monitor and deter their international movement and interdict them at strategic entry points, where possible. Composed of the National Central Bureaus (NCB) of more than 30 member countries, the program was established in response to the need for a forum for sharing intelligence and best practices on a global scale to combat the threat of foreign terrorist fighters traveling to Iraq and Syria.
“Interpol provides critical leadership in advancing the Justice Department’s efforts to combat terrorism and ensure the safety of all Americans – offering cutting-edge resources, a structure for international cooperation, and strategic tools like Red, Blue and Green Notices for tracing, targeting and apprehending terror suspects,” said Attorney General Eric Holder. “In a world that is increasingly interdependent and interconnected, Interpol helps to defend against a range of evolving challenges by disseminating information, combating crime, and identifying potential threats. And particularly today, with the emergence of groups like ISIL, and the knowledge that some Americans are attempting to travel to countries like Syria and Iraq to take part in ongoing conflicts, Interpol – as the world’s largest international police organization – has a vital role to play in safeguarding our homeland and protecting the American people.”
“The threat posed by foreign fighters is one that is persistent and requires the full cooperation and resources of the international law enforcement community to effectively combat," said Secretary of Homeland Security Jeh Johnson. “We are already working closely with European and other governments to build better information sharing, and we will continue to leverage our partnership with the Interpol, Department of Justice and other international partners to make enhanced and concerted efforts to track foreign fighters who come from or seek to enter the United States.”
The program currently supports a working group that includes Australia, Belgium, Canada, France, New Zealand, Spain, Switzerland, the Netherlands, Turkey, the United Kingdom and the United States, and an international symposia—a multinational database populated with information contributed by and accessible to participating member countries. The criminal intelligence information contained in the database includes detailed identity particulars that are especially valuable to law enforcement and border control authorities in making determinations of the terrorist threat posed by subjects located in, or attempting to enter, their respective jurisdictions.
Interpol Washington played a critical role in the program’s development and is taking the lead on implementing it in the United States by continuing to strategically use Interpol Red Notices to target and apprehend terrorists for prosecution in U.S. courts and Interpol Blue Notices to trace and locate terrorists and others suspected of terrorism-related activity, including those not charged with a particular offense. Further, Interpol Washington is extensively utilizing Interpol Green Notices to publish information about hundreds of foreign nationals previously identified in both Iraq and Afghanistan and involved in terrorist activities. Interpol also offers countries the ability to use its information sharing system to send targeted messages to key partners on terrorist subjects.
“Interpol Washington continues to champion international police cooperation by leading U.S. efforts in the Interpol Foreign Terrorist Fighter program,” said Interpol Washington Director Shawn A. Bray. “Interpol provides a unique set of information sharing solutions for addressing this growing threat. By applying these solutions via its secure global communications network, Interpol member countries send a strong, unified message of engagement against FTFs and those who support them.”
Regional meetings, meetings of the heads of National Central Bureaus and the annual Interpol General Assembly represent additional opportunities for strengthening the FTF program. Finally, Interpol works closely with the United Nations, particularly the Sanctions Committee of the UN Security Council, to publish Special Notices on individuals listed by the Sanctions Committee as belonging to or associated with al Qaeda and the Taliban.
Interpol Washington, a component of the DOJ and co-managed by the DHS, facilitates the sharing of criminal justice, humanitarian and public safety information among Interpol’s 190 member countries and more than 18,000 local, state, federal and tribal law enforcement agencies in the United States. In coordinating international investigative efforts, Interpol Washington works to enhance the safety and security of our nation.
For more information about Interpol Washington, visit: www.justice.gove/interpol-washington.
Husband and Wife Indicted for Embezzling from Employee Benefit Plans and for Tax EvasionRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Shaun Tucker, a/k/a “Shawn Turner,” and his wife, Joanne Tucker, a/k/a “Joanne Krcma,” “Jill Swanson,” and “Jocelyn Turner,” both age 49, of Keymar, Maryland, for embezzling from employee benefit plans and for tax evasion. The indictment was returned on September 16, 2014 and unsealed yesterday.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Bill Jones, U.S. Department of Labor – Office of Inspector General, Washington Regional Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; Regional Director Marc I. Machiz of the U.S. Department of Labor, Employee Benefits Security Administration; and Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office..
The Tuckers were officers and shareholders of Quantell, Inc. and Intaset Technologies Corporation. Both companies had employee health and welfare plans in which employees deposited their contributions. The Tuckers also served as the plan administrators of both companies’ employee plans, and as representatives of the plan sponsors, Quantell and Intaset.
According to the five count indictment, in October, 2009, upon Shaun’s request, the bank holding the companies’ plan funds issued a check for $50,000 from the Intaset employee plan and a check for $100,000 from the Quantell employee plan, payable to MT&B, a company that the Tuckers had registered with the IRS. On October 9, 2009, the Tuckers caused the two bank checks to be deposited into a bank account for MT&B.
On January 4, 2010, the Tuckers allegedly caused a bank check for $42,344.32 and another check for $92,655.24, to be deposited into the MT&B bank account. These remaining funds were also assets of the Quantell and Intaset plans.
The indictment alleges that from November 2009 to April 2010, the Tuckers caused money to be transferred from the MT&B bank account, and eventually used more than $200,000 to pay for the construction of a 5,000 square foot home in Swanton, Maryland and other personal benefits.
The indictment further alleges that on April 8 and October 7, 2010, Shaun Tucker falsely stated to representatives of the Department of Labor (DOL) that there had been no transfers of any Quantell plan assets. On November 8, 2010, Shaun Tucker submitted a form to DOL falsely certifying that all of the remaining assets from the Quantell plan had been transferred to a Quantell - MT&B employee plan, while knowing that the Tuckers had instead used the funds for their personal benefit.
The indictment seeks the forfeiture of $284,999, the total amount of money which the Tuckers allegedly embezzled from the company employee plans, along with the residence in Swanton and a 2011 BMW.
Finally, according to the indictment, the Tuckers filed a joint tax return for 2009 in which they falsely reported income of $180,251, when in fact they knew that their income was $821,579, upon which taxes of $256,069 were owed.
“Business owners have an obligation to their employees and as taxpayers.” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office.
The Tuckers face a maximum sentence of five years in prison and a fine of $250,000 on each of four counts of embezzling from an employee plan; and a maximum of five years in prison and a $100,000 fine for tax evasion. An initial appearance has been scheduled for the defendants on October 1, 2014 at 11:00 a.m. in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s 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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Department of Labor – Office of Inspector General, IRS – Criminal Investigation, U.S. Department of Labor - Employee Benefits Security Administration, and DCIS for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Harry Gruber and Judson Mihok, who are prosecuting the case.
Hudson County, New Jersey Woman Admits Valentine's Day Bank Heist Was Part of Robbery SpreeRead the Press Release
NEWARK, N.J. - A woman today admitted committing three bank robberies over a three week span in Newark and Harrison, New Jersey – including one on Valentine’s Day, U.S. Attorney Paul J. Fishman announced.
Valeria Parziale, 35, of Harrison, N.J., pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to an information charging her with robbing a Wells Fargo Bank in Newark on Feb. 14, 2014. Parziale also admitted committing two other robberies.
According to the documents filed in this case and statements made in court:
Parziale robbed a Valley National Bank in Harrison on Jan. 30, 2014, a Wells Fargo bank in Newark on Feb. 14, 2014, and a Popular Community Bank in Newark on Feb. 20, 2014. At each robbery, Parziale handed the teller a note demanding cash and threatening the use of a gun. On one occasion, she wore a wig to disguise her identity.
On Feb. 24, 2014, Parziale was located in Newark and was in possession of a wig and a note similar to the one used in the prior bank robberies. She has been in custody since that time.
The bank robbery charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Dec. 23, 2014.
U.S. Attorney Fishman praised special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, with the investigation leading to the arrest and charges. He also thanked the Newark, Kearny, and Harrison Police Department for their excellent work in this case.
The government is represented by Special Assistant U.S. Attorney Thomas S. Kearney of the U.S. Attorney’s Office General Crimes Unit in Newark.
14-342
Defense counsel: Assistant Federal Public Defender John Yauch Esq., Newark
Parziale, Valeria Information
Harrisburg Man Pleads Guilty to Conspiracy to Defraud the IRS of Approximately $1 Million in Employment TaxesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Son Thach, 55, Harrisburg, Pennsylvania, pleaded guilty today before U.S. District Court Judge John E. Jones III to conspiracy to defraud the IRS of approximately $1 million in employment taxes between 2006 and 2012.
According to U.S. Attorney Peter Smith, Thach and a co-conspirator operated five employee leasing companies which supplied day laborers to several businesses in the Harrisburg area.
The employee leasing companies were known as V&S Services, Industrial Labor Services, Advance Labor Services, HD Staffing Services and TD Staffing. Between 2006 and 2012, these five businesses paid cash wages of more than $7 million to their employees without withholding any employment taxes, such as social security and Medicare taxes. As a result, approximately $1 million in employment taxes were not collected and paid to the IRS, as required by federal law.
Thach was indicted by a grand jury on July 10, 2014 along with Vanny Son and Hung Danh, also of Harrisburg. Son is scheduled for trial in December 2014 and Danh remains a fugitive.
Thach faces up to five years’ imprisonment, a $250,000 fine and up to three years’ supervised release as well as restitution to the IRS as a result of the guilty plea. No date has been set for sentencing.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case was investigated by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler for prosecution.
****Glacier Park Murder Prosecution Team Receive Award from Montana U.S. AttorneyRead the Press Release
HELENA- Seven investigators and the U.S. Attorney's Office trial team in the Jordan Graham murder investigation received a total of fourteen awards from Montana U.S. Attorney Mike Cotter today. The awards honor law enforcement in Montana who demonstrate integrity, candor, fairness and reliability in high profile, high stakes cases and investigations. In early July 2013, Graham killed her husband of eight days by pushing him off a remote cliff in Glacier National Park in northern Montana.
The following investigative team members received the U.S. Attorney's Excellence Award: Federal Bureau of Investigation Special Agents Steve Liss and Stacy E. Smiedala, Kalispell Police Department Captain Scott Warnell and Detectives Melissa Smith and Cory Clarke, National Park Service Special Agent Justin Ivary, and Flathead County Sheriff's Office Commander Dick Sine.
The trial team at the U.S. Attorney's Office also received from U.S. Attorney Cotter the Themis Award, which honors the diligent work of prosecution teams for successful prosecution of difficult and significant cases in the district. Themis was a Goddess of divine justice and law. Recipients of the award are: United States Assistant Attorneys Kris McLean and Zeno Baucus, and staff prosecution members, including Irene Pocklington, Cassie Potter, Sheryl Wyman, Colette Edam, and Kimberlee Taylor.
The conviction of Graham happened because of the incredible investigative team and a hard-working and talented trial team which worked tirelessly to propel this case to a right and just conclusion," said Montana U.S. Attorney Mike Cotter. "The United States Department of Justice and the Montana United States Attorney's Office extend our profound appreciation and thank you to the agents, officers, attorneys and trial support team involved in this investigation."
Georgia Man Sentenced to Fourteen Years for Conspiracy to Distribute Methamphetamine in Georgia and TennesseeRead the Press Release
CHATTANOOGA, Tenn. – On Sept. 24, 2014, Anthony Long, 42, of Chatsworth, Ga., was sentenced to serve 168 months in prison by the Honorable Harry S. Mattice Jr., U.S. District Judge. Long pleaded guilty in May 2014 to conspiracy to distribute methamphetamine. Upon his release from prison, he will be subject to three years of supervised release by the U.S. Probation Office.
Long was one of 18 individuals from Tennessee and Georgia charged in a conspiracy to transport methamphetamine from Atlanta to Polk County, Tenn., where it was distributed. In the plea agreement on file with the U.S. District Court, Long admitted that he had driven two pounds of methamphetamine from the Atlanta to Ranger, Ga., at the direction of his co-conspirators. When law enforcement attempted to stop his car, Long fled and led the officers on a high speed chase, exceeding 100 miles per hour, on Interstate 75.
The indictment and subsequent conviction of Long was the result of an investigation conducted by the Department of Homeland Security Investigations Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives; Tenth Judicial District Drug Task Force; and Polk County Sheriff’s Office. Assistant U.S. Attorney Terra L. Bay represented the United States.
Fugitive Captured After Shootout with U.S. Marshals Indicted for Assault with A Deadly Weapon and Related Firearms OffensesRead the Press Release
Earlier today, a five-count indictment was returned by a federal grand jury sitting in Brooklyn, New York, charging Oswald Lewis, also known as “Alexander Louis,” “Junior,” “Andrew Jackson,” “Andre Bernard Jackson,” “John Green,” “Leslie Howard” and “Dre,” with assault on a federal officer by use of a deadly weapon and related firearms offenses. Lewis was arrested on August 26, 2014, and has remained in custody since then. The case has been assigned to United States District Judge I. Leo Glasser.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Charles G. Dunne, United States Marshal for the Eastern District of New York; William J. Bratton, Commissioner, New York City Police Department (NYPD), and James S. Higgins, Acting Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division.
As alleged in court documents, Lewis has been wanted since 1991 on numerous drug charges by the United States District Court for the Eastern District of Virginia. On August 26, 2014, the United States Marshals Service located Lewis in an apartment in the Springfield Gardens section of Queens, New York. Later that evening, Deputy U.S. Marshals and officers of the New York City Police Department went to the apartment to arrest him. When Deputy U.S. Marshals entered the apartment, Lewis, who was wearing body armor, yelled that he was holding a hostage and began shooting. In the midst of his shooting spree, Lewis fired shots out his apartment window at members of the NYPD, who had surrounded the premises. During an exchange of gunfire, Lewis was shot in the arm. He eventually surrendered and was taken into custody. No law enforcement officers were injured.
“As alleged, Oswald Lewis sought to extend his life on the lam by shooting his way out of a confrontation with law enforcement, endangering officers and civilians alike. As this case illustrates, the apprehension of armed fugitives like Lewis is a dangerous task,” stated United States Attorney Lynch. “We owe a great deal of gratitude to the United States Marshals Service, the New York City Police Department, and our other law enforcement partners, for their valiant and courageous efforts that, at long last brought Lewis to justice, and for safeguarding the communities that we call home. I also express thanks to the ATF for its participation in this investigation.”
“As alleged in the indictment, this incident shows just how dangerous fugitive work can be for the U.S. Marshals. This fugitive was wearing body armor, and he was armed with two illegal semi-automatic pistols when he opened fire without warning. Fortunately, no law enforcement officers were injured. This could have ended much differently,” stated United States Marshal Dunne.
ATF Acting Special Agent-in-Charge Higgins stated, “Although the defendant was able to enjoy his freedom for a substantial period of time, he quickly learned to appreciate the relentlessness of law enforcement. The ATF is grateful that no officers or innocent civilians were injured during Lewis’s capture and are determined - alongside the U.S. Attorney’s Office and our law enforcement partners - to see this investigation to its end. Society deserves nothing less.”
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by Special Assistant United States Attorney Jonathan P. Lax.
The Defendant:
OSWALD LEWIS
Age: 44
Queens, New York
E.D.N.Y. Docket No. 14-CR-523 (ILG)
Fresno Fugitive Apprehended by Marshals, Faces Tax Fraud ChargesRead the Press Release
FRESNO, Calif. — Gaylene Lynette Bolanos, 56, of Fresno, was apprehended Tuesday by the United States Marshals Service in Fresno, United States Attorney Benjamin B. Wagner announced.
Bolanos was indicted by a federal grand jury in September 2013 with seven other defendants for claiming more than $32 million in fraudulent tax refunds. Throughout the court proceedings, Bolanos has filed documents with the court claiming that she does not accept the authority of the United States government.
After her arraignment in October 2013, the court ordered Bolanos released from custody on a $5,000 bond and ordered to report on a regular basis to the Pretrial Services Office. In August 2014, Bolanos failed to report to Pretrial Services. She was ordered to appear for a bail review hearing on August 28, 2014, but failed to appear and did not respond to Pretrial Services’ attempts to contact her. As a result, the court issued a warrant for her arrest. After searching for Bolanos for several weeks, the United States Marshals Service was able to locate and arrest Bolanos in Fresno.
Bolanos appeared before United States Magistrate Judge Barbara A. McAuliffe today and was ordered detained as a flight risk.
This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Megan A. S. Richards are prosecuting the case.
The charges against Bolanos are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, Bolanos faces 10 years in prison for the conspiracy charge and five years in prison on each false claims charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Private School Coach Indicted for Secretly Fliming Students Undressing on School TripsRead the Press Release
The former cross country ski coach at a Seattle private school was indicted today by a federal grand jury for five child pornography related offenses, announced U.S. Attorney Jenny A. Durkan. JASON CHRISTOPHER PAUR, 44, of Seattle was arrested by the Royal Canadian Mounted Police in December 2013 at Silver Star ski area in British Columbia, Canada. The arrest came after female students on a school sponsored field trip discovered a video camera had been hidden in their bedroom. The camera had been positioned to video-tape the young students while they got dressed after showering. PAUR is charged with two counts of Production and Transportation of Child Pornography, Production of Child Pornography with Intent to Transport, Possession of Child Pornography and Transportation of Minors with Intent to Engage in Criminal Sexual Activity. PAUR remains in Canadian custody.
According to records in the case and the indictment, the investigation revealed that PAUR had secretly recorded students while on the annual field trip in 2011 and 2012. The camera seized in Canada contained images of students between the ages of 14 and 17 being secretly filmed while changing clothes or after exiting the shower. The indictment alleges PAUR used the pictures for his own sexual gratification, and transported the pictures from Canada to the U.S. The indictment further alleges that PAUR traveled with the juveniles to Canada knowing that he planned to film them for his own sexual gratification.PAUR was immediately removed from the field trip by the chaperons who notified police. PAUR was fired by the school, which has fully cooperated with law enforcement.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). The case is being prosecuted by Assistant United States Attorney Kate Vaughan.
Press contact for the U.S. Attorney’s Office is Emily Langlie at (206) 553-4110 or [email protected].
Former Municipal Court Judge Pleads Guilty in Corruption CaseRead the Press Release
PHILADELPHIA – Joseph C. Waters, Jr., 61, of Philadelphia, pleaded guilty today to using his judicial position to influence the outcome of two cases in the Philadelphia Municipal Court, announced United States Attorney Zane David Memeger. Waters, a former Philadelphia Municipal Court Judge, pleaded guilty to an information charging mail fraud and honest services wire fraud.
According to documents filed in the case, on September 30, 2011, Waters was asked by Person #1 – a politically active business owner – to use his judicial office to achieve a favorable outcome in a small claims case filed in Philadelphia Municipal Court against Person #1’s real estate management company. To that end, Waters called two other Municipal Court judges, assigned to the case on different dates, and asked them to rule in Person #1’s favor. A Municipal Court Judge identified in the information as Judge #2 ultimately adjudicated the case in favor of Person #1 after Waters told Judge #2 “he’s a friend of mine.” The information charges that Judge #2’s ruling in favor of Person #1’s company prevented the plaintiff in the small claims case, Company B, from collecting $2733 in unpaid fees owed to it for security services it delivered to Person #1’s company.
Waters admitted today that he gave Person #1 a secret advantage through a series of secret ex parte communications with other Municipal Court judges scheduled to hear the small claims case and used his position to cause favorable rulings for Person #1.
The information outlined a second scheme in which Waters used his position as a judge to facilitate a favorable outcome in a criminal firearms case. According to the information, Person #1 urged a witness cooperating with the government, “CW#1,” to contribute money to help pay down debts Waters had incurred while campaigning for a position on the Municipal Court. In January 2010, CW#1, gave Waters $1,000 in cash. The information charged that, in accepting the money, Waters told CW#1 that he would help CW#1 with future problems that CW#1 or CW#1’s friends may encounter in the court system. The information further alleged that between 2010 and 2012, CW#1 provided gifts and cash contributions to Waters that were not reported on Waters’ campaign finance reporting forms.
In May 2012, CW#1 asked Waters for his assistance with a firearms prosecution pending in the Municipal Court. CW#1 introduced Waters to an undercover agent (“UC#1”) as a business associate. CW#1 and UC#1 asked Waters to help UC #1’s “cousin” who had been arrested for felony possession of a firearm. On July 23, 2012, Waters called Judge #1 alerting Judge #1 to the preliminary hearing of a “friend” for the firearms charge and asked Judge #1 to “help him.” According to the information, at a July 24, 2012 preliminary hearing, Judge #1, without proper legal basis, reduced the felony firearms charge to a misdemeanor.
U.S. District Court Judge Juan R. Sanchez scheduled a sentencing hearing for January 22, 2015. Waters faces a maximum statutory sentence of 40 years in prison, a fine of up to $500,000 and up to three years of supervised release.
The case was investigated by the FBI and is being prosecuted by Chief of the Public Corruption Unit Richard P. Barrett and Assistant United States Attorney Michelle L. Morgan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Hamilton County, Tennessee, Deputy Sheriff Indicted for Sexual Assault While on DutyRead the Press Release
Former Hamilton County Deputy Sheriff Willie Greer, 33, was indicted yesterday by a federal grand jury in Chattanooga, Tennessee, for sexually assaulting a woman while he was on duty on Jan. 5, 2014, the Justice Department announced.
Greer was charged with a civil rights violation for sexually assaulting the victim, which violated her constitutional due process rights to bodily integrity, kidnapping, carrying a firearm during and in relation to the sexual assault and possessing a firearm in further of the crime.
If convicted, the defendant faces a maximum penalty of life imprisonment and a fine of not more than $250,000. An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
This case was investigated by the FBI and the Hamilton County Sheriff’s Office and is being prosecuted by Assistant United States Attorney James Brooks of the Eastern District of Tennessee and Civil Rights Division Trial Attorney Saeed Mody.
Former Director of Market Intelligence at Investor Relations Firm Pleads Guilty in Manhattan Federal Court to Insider TradingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL A. LUCARELLI, the former Director of Market Intelligence at Lippert/Heilshorn & Associates, Inc. (“LHA”), an investor relations firm, pled guilty today in Manhattan federal court to insider trading. Specifically, LUCARELLI admitted repeatedly using material nonpublic information that he acquired during his employment at LHA to take positions in the stock of LHA clients over the course of the year-long scheme. LUCARELLI was arrested on August 26, 2014, and pled guilty to a one-count Information before U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “Michael Lucarelli, in violation of his company’s policies and his clients’ trust, illegally traded on material nonpublic information for his own financial gain. For using his company’s and clients’ secrets for his own personal gain, he now faces time in federal prison and the forfeiture of over $900,000 that he unlawfully obtained. If you are not deterred by the line of convicted felons who engaged in insider trading over the past several years then you will join the line.”
According to the allegations contained in the Information filed today in Manhattan federal court, the underlying criminal Complaint unsealed on August 26, 2014, the plea agreement, and statements made during court proceedings:
From at least August 2013 through at least August 2014, LUCARELLI engaged in an insider trading scheme to use and trade upon material nonpublic information that he acquired during his employment at LHA, an investor relations firm based in Manhattan. Specifically, LUCARELLI, as an LHA employee, had access to working drafts of press releases prepared by LHA for its clients prior to their issuance to the investing public. Those draft press releases contained material, nonpublic information about business events and announcements relating to LHA’s clients.
In violation of LHA’s policies and in breach of his duties to LHA and its clients, on multiple occasions, LUCARELLI took positions in the stock of LHA clients shortly before the announcement by these companies of material information through press releases prepared by LHA. Shortly after LHA issued the press releases, LUCARELLI sold these securities that he had acquired prior to the issuance, thereby profiting on the movement in the stock price.
LUCARELLI repeatedly traded in LHA client securities despite LHA’s written code of conduct, which strictly prohibited LHA employees from trading in any security issued by an LHA client. LUCARELLI carried out his scheme in at least four different brokerage accounts. When opening new brokerage accounts through which to conduct his illegal trades, LUCARELLI did not reveal his affiliation with LHA. And, on two occasions, LUCARELLI opened new brokerage accounts soon after his ability to trade in other accounts had been suspended by the respective brokerage firms.
On or about July 24, 2014, the Federal Bureau of Investigation (“FBI”) obtained a court-approved search warrant to search LUCARELLI’s office at LHA for evidence of his insider trading activities. During that search, which was conducted without LUCARELLI’s knowledge, the FBI located a locked briefcase that contained a draft press release for LHA client TREX Company (“TREX”). That press release was marked “DRAFT” and contained TREX’s second fiscal quarter 2014 financial results. The following day, after the FBI completed the search, LUCARELLI started purchasing shares of TREX. Between July 25, 2014, and August 1, 2014, LUCARELLI took a net position of 37,400 shares of TREX. Then, on August 4, 2014, shortly before the market opened, TREX issued a press release announcing its second fiscal quarter 2014 financial results. Among other things, TREX announced that sales and earnings before taxes had increased 23 percent and 62 percent, respectively, in comparison with the comparable period in 2013. TREX also issued revenue guidance for the third fiscal quarter of 2014, which was a 27 percent increase over the comparable period in 2013. Within two hours of the announcement, LUCARELLI sold 35,058 of the 37,400 TREX shares he previously purchased. Those sales yielded a profit of almost $90,000.
As a result of the 13 instances of insider trading specifically set forth in the Information, LUCARELLI earned at least $538,215.32 in illicit proceeds. Furthermore, as reflected in the plea agreement, on at least 18 additional occasions, LUCARELLI took positions in LHA client securities on the basis of inside information. In total, these 31 instances yielded LUCARELLI $955,521.62 in profits.
LUCARELLI, 52, of New York, New York, pled guilty to one count of securities fraud. The securities fraud count carries a maximum sentence of 20 years in prison and a maximum fine of $5 million, or twice the gross gain or loss from the offense. As part of his guilty plea, LUCARELLI also agreed to forfeit $955,521.62 to the United States. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s 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. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian R. Blais and Damian Williams are in charge of the prosecution. Assistant U.S. Attorney Carolina A. Fornos of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture of assets.
U.S. v. Michael Lucarelli Information
Former Delray Beach Resident Sentenced in Third Case Involving Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Jeffrey Emil Groover, 53, formerly of Delray Beach, was sentenced today before U.S. District Judge Dimitrouleas to 13 years and seven months in prison, followed by three years of supervised release.
On June 25, 2014, Groover was convicted by a jury of all six counts with which he was charged. Specifically, Groover was convicted of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, three counts of bank fraud, in violation of Title 18, United States Code, Section 1344, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to records filed in this case and statements made in court, Groover used the personal identifying information (PII) of an individual without her knowledge or consent to open a checking account and obtain a debit/VISA card at TD Bank. Groover forged the name on the signature card for the account and, when asked for identification, produced a fraudulent, photo-switched Florida Driver's License with the individual’s correct information, but the defendant's photograph. Approximately one week after opening the account at TD Bank, Groover again used the individual’s PII to open a checking account at PNC Bank. When asked to provide two forms of identification for the account, Groover used the fraudulent debit/VISA card obtained from TD Bank, and the fraudulent, photo-switched Florida Driver's License. Groover directed the PNC banker to set up overdraft protection for the fraudulent checking account using the individual’s existing home equity line of credit. Between September 27, 2013 and September 30, 2013, Groover and his co-conspirators withdrew and attempted to withdraw approximately $170,000 from the individual’s home equity line of credit by cashing a $20,000 check drawn directly on the line of credit.
In a separate case involving an identity theft tax refund fraud scheme, Groover was sentenced on April 18, 2014, before U.S. District Judge Robin Rosenbaum to 60 months in prison, followed by three years of supervised release, and was ordered to pay $350,373.86 in restitution.
Noting Groover’s extensive criminal history, including numerous identity theft cases, the judge sentenced the defendant to a sentence significantly above the sentencing guideline range.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorneys Adrienne Rabinowitz and Alexandra Hui.
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.
Former Chief Financial Officer Indicted for $30 Million Bank FraudRead the Press Release
Thomas Torre, the former Chief Financial Officer of Metro Fuel Oil Corp. (“Metro Fuel”), located in Greenpoint, New York, has been charged in a two-count indictment with bank fraud and conspiracy for his participation in a scheme to overstate Metro Fuel’s accounts receivable in order to draw from a revolving line of credit issued by New York Commercial Bank. Metro Fuel later filed for bankruptcy after allegedly stealing over $30 million from the bank. The defendant is scheduled to be arraigned on Friday, September 26, 2014, at 11:00 a.m. before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
According to court filings, from approximately July 2007 to July 2012, the defendant and others falsely overstated the company’s accounts receivable on certificates submitted to the bank at least once per month. The bank used the information in the certificates to determine the amount Metro Fuel could borrow from the bank on its revolving line of credit. The defendant and others misrepresented the true accounts receivable by deliberately failing to account for the cash payments received from customers and by creating fictitious invoice amounts. By September 2012, the fuel company could no longer pay its bills and filed a voluntary petition for bankruptcy. At the time of the bankruptcy, the fuel oil company owed the bank more than $30 million.
“The defendant and his co-conspirators obtained tens of millions of dollars in loans from New York Commercial Bank under false pretenses, claiming both that they had real collateral and that they intended to pay the money back. Neither claim was true, and when Metro Fuel collapsed the bank was left holding the over $30 million bag. Those who perpetrate fraud against our financial institutions will be met with the full force of law enforcement,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation, the agency responsible for leading the government’s investigation.
If convicted, the defendant faces up to 30 years’ imprisonment on each count. The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
This prosecution was the result of efforts by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s 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 more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The government’s case is being prosecuted by Assistant United States Attorney William P. Campos.
The Defendant:
THOMAS TORRE
Age: 63
Albertson, New York
E.D.N.Y. Docket No. 14-CR-514 (PKC)
Former CEO of Orange County Medical Device Firm Indicted for Providing Inside Information to Former Professional Baseball PlayerRead the Press Release
SANTA ANA, California – A federal grand jury today indicted the former chief executive officer of an Orange County medical device and eye care company on insider trading charges.
James V. Mazzo, who was the CEO of the Santa Ana-based Advanced Medical Optics, Inc., which was traded on the New York Stock Exchange under the symbol EYE, was added to an indictment that had previously named former professional baseball player Douglas DeCinces and two of his associates.
The case, which was initially filed in 2012, alleges that Mazzo was the source of non-public information that DeCinces and his associates used to trade EYE stock in the midst of a takeover bid by Abbot Laboratories.
The 41-count superseding indictment filed this afternoon in United States District Court charges Mazzo with providing DeCinces with confidential information in advance of Abbott’s 2009 acquisition of Advanced Medical Optics. DeCinces and his associates allegedly used the non-public information to purchase shares of EYE, which increased from approximately $8 to $22 as a result of the acquisition.
The indictment further alleges that Mazzo previously provided DeCinces with inside information in relation to Advanced Medical Optics’ 2007 acquisition of an Irvine medical device company, IntraLase Corp. (NASDAQ: ILSE). DeCinces allegedly used this inside information to purchase IntraLase stock, and to tip a friend to purchase shares, ahead of the announcement that Advanced Medical Optics was purchasing the company. IntraLase stock rose approximately 10 percent after the announcement of the deal.
The superseding indictment names:
James V. Mazzo, 57, of Laguna Beach, who was the CEO of Advanced Medical Optics from 2002 to 2009;
Douglas V. DeCinces, 60, of Laguna Beach, who currently is the president and CEO of a real estate development firm in Irvine;
David Parker, 60, of Provo, Utah, who was a friend and business partner of DeCinces; and
Fred Scott Jackson, 65, of Newport Beach, a real estate attorney who was friends with DeCinces.
The superseding indictment alleges that, during a series of meetings in the fall and early winter of 2008, Mazzo obtained inside information about Abbott’s planned tender offer, specifically that Abbott was prepared to pay $21 to $23 per share of EYE stock, which at the time was trading around $8 per share. Mazzo – who the indictment describes as a close personal friend of DeCinces’ – allegedly disclosed inside information regarding the tender offer during a series of meetings and telephone calls with DeCinces in the weeks leading up to the public announcement of the tender offer. During this same time, the indictment alleges, DeCinces began buying up EYE shares. According to the indictment, in December 2008, DeCinces liquidated his diverse stock portfolio of investments at Merrill Lynch – suffering approximately $80,000 in losses – to obtain approximately $160,000 that he used to purchase EYE stock. The superseding indictment alleges that DeCinces ultimately purchased a total of 90,700 shares of EYE stock, which he sold soon after Abbott’s tender offer for the company was publicly announced, and realized approximately $1.3 million in profits.
The indictment also alleges that DeCinces provided inside information about the Abbott tender offer to five other individuals who also purchased EYE stock. DeCinces allegedly gave the tip to Parker and Jackson, in part, to make up for prior investment recommendations that had gone bad. After purchasing EYE shares and selling them following the acquisition, Parker allegedly realized illegal profits of $347,920 and Jackson allegedly obtained illegal profits totaling $140,259.
An indictment contains allegations that a defendant has committed crimes. Every defendant is presumed innocent until and unless proven guilty.
The four defendants indicted in this case will be summoned to appear for arraignments in United States District Court in Santa Ana.
The indictment charges Mazzo with 13 counts of insider trading, 13 counts of tender offer fraud and one count of securities fraud.
DeCinces is charged with 19 counts of insider trading, 19 counts of tender offer fraud, one count of securities fraud and one count of money laundering.
Parker and Jackson are each charged with three counts of insider trading, three counts of tender offer fraud, and one count of securities fraud. Parker additionally faces one count of money laundering and criminal forfeiture.
The securities fraud count carries a maximum statutory sentence of 25 years in federal prison. Each of the insider trading and tender offer fraud counts in the indictment carry a maximum statutory sentence of 20 years. The money laundering counts each carry a maximum penalty of 10 years.
This investigation in this case was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The Securities and Exchange Commission provided assistance during the investigation.
The SEC has a pending civil lawsuit in relation to the EYE insider trading scheme (see: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1365171483872). DeCinces settled the case without admitting or denying the allegations, agreeing to pay $2.5 million in fines and not contest the IRS’ seizure of what were alleged to be insider trading profits. Jackson, without admitting or denying the allegations in the lawsuit also settled with the SEC, returning his profits and paying a penalty. A trial for Mazzo and Parker is scheduled for August 2015 in United States District Court in Santa Ana.
Release No. 14-128
Former Bossier Sheriff Larry Deen, Dealership Owners Indicted for Vehicle Purchase SchemeRead the Press Release
SHREVEPORT, La. –A grand jury indicted former Bossier Parish Sheriff Larry Deen and two owners of Blakey Auto Plex, LLC, U.S. Attorney Stephanie A. Finley announced today.
Former Bossier Parish Sheriff Larry C. Deen, 66, of Benton, La., Clinton E. Blakey, 40, of Shreveport, La., and Clifton D. Blakey, 35, of Benton, La., were indicted on one count of conspiracy to commit federal program theft, one count of federal program theft, and one count of failure to file IRS Tax Form 8300. According to the indictment, starting in January 2012, Deen is accused of conspiring with Clinton Blakey and Clifton Blakey, co-owners of Blakey Auto Plex, LLC (BAP), to retain control and gain ownership of a white four-door 2009 Chevrolet Suburban LTZ that was owned by the Bossier Parish Sheriff’s Office. They are also accused of attempting to unlawfully enrich themselves through the conspiracy, and did this in part by undervaluing the vehicle at $21,375 when it was traded in to BAP by the Bossier Parish Sheriff’s Office in May of 2012. The indictment also charges Clinton Blakey and Clifton Blakey with failing to file a Form 8300 in connection with $21,000 paid to BAP in July 2012. A Form 8300 is required to be filed when anyone engages in a trade or business who, in the course of such trade or business, receives more than $10,000 in a transaction or in two or more related transactions.
The defendants face five years in prison and one year of supervised release for the conspiracy count and 10 years in prison and three years of supervised release for the theft count. Clinton Blakey and Clifton Blakey face five years in prison and one year of supervised release for the Form 8300 count. They also face a $250,000 fine for each count and forfeiture of the proceeds traceable to and property involved in the offenses.
The FBI and Louisiana State Police conducted the investigation. Assistant U.S. Attorneys Cytheria D. Jernigan and Joseph G. Jarzabek are prosecuting the case.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Former Acting Pembroke Township Supervisor Pleads Guilty to Defrauding Township AccountsRead the Press Release
Urbana, Ill. – A former acting Pembroke Township Supervisor, Leon Eddie Mondy, pled guilty today to defrauding township accounts of more than $60,000 from August 2012 to May 2013. Mondy entered his open plea of guilty to one count of wire fraud in an appearance this afternoon before U.S. Magistrate Judge David G. Bernthal. Sentencing has been scheduled for Jan. 23, 2015, in Peoria, before Chief U.S. District Judge James E. Shadid.
Mondy, 35, of St. Anne, Ill., admitted that during the time he was serving as the acting Pembroke Township Supervisor, he withdrew more than $60,000 in cash from various township accounts and spent the money on gambling. Overall, according to court documents, Mondy lost $67,418 from gambling during the same time that he made $66,434 in unauthorized cash withdrawals from Pembroke township accounts.
As township supervisor, Mondy was a signatory and had access to the township’s various bank accounts. Mondy admitted he repeatedly transferred funds between township accounts and withdrew cash from the various accounts under the false pretense that the funds would be used for the benefit of the township. The accounts included Insurance, the Illinois Municipal Retirement Fund, Water, Community Center, Employee Deductions, Senior Nutrition, and Social Security. The cash withdrawals varied from as little as $300 to as much as $3,542.
The charge is the result of an investigation by the Federal Bureau of Investigation and the Illinois Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
The offense of wire fraud carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000.
Foreign National Pleads Guilty to Smuggling Undocumented African Nationals into the United StatesRead the Press Release
A national of Eritrea and citizen of the United Kingdom pleaded guilty today to smuggling undocumented immigrants from Eritrea and Ethiopia into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr. of the District of Columbia and Special Agent in Charge Clark Settles of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ (HSI) Washington, D.C., Field Office made the announcement.
According to his plea agreement, Habtom Merhay, 47, who operated primarily from his residence in Dubai, orchestrated the unlawful smuggling of up to 99 undocumented African immigrants to the United States for profit. Specifically, Merhay admitted that in exchange for fees up to $14,000, he smuggled immigrants into the United States by providing fraudulent travel documents, purchasing airline tickets for travel to South and Central America, and then coordinating with a network of smugglers to facilitate the travel by air, land and water across Central America and Mexico and into the United States.
Merhay pleaded guilty today before U.S. District Judge Reggie B. Walton of the District of Columbia, and is scheduled for sentencing on Dec. 16, 2014. Merhay was in the custody of Moroccan authorities between his arrest in Marrakech, Morocco, in August 2013 and extradition to the United States on April 25, 2014.
The investigation was led by HSI’s Washington, D.C., Field Office, with the support of the Human Smuggling Trafficking Center and the U.S. Customs and Border Protection’s National Targeting Center. This case is being prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frederick Yette of the District of Columbia. The extradition was handled by Dan E. Stigall of the Criminal Division’s Office of International Affairs.
The Department of Justice and HSI expressed their appreciation for the significant assistance provided by the Moroccan Ministry of Justice.
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Foreign National Pleads Guilty to Smuggling Undocumented African Nationals into the United StatesRead the Press Release
WASHINGTON – A national of Eritrea and citizen of the United Kingdom pled guilty today to smuggling undocumented immigrants from Eritrea and Ethiopia into the United States.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Ronald C. Machen Jr. of the District of Columbia, 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.
According to his plea agreement, Habtom Merhay, 47, who operated primarily from his residence in Dubai, orchestrated the unlawful smuggling of up to 99 undocumented African immigrants to the United States for profit. Specifically, Merhay admitted that in exchange for fees up to $14,000, he smuggled immigrants into the United States by providing fraudulent travel documents, purchasing airline tickets for travel to South and Central America, and then coordinating with a network of smugglers to facilitate the travel by air, land and water across Central America and Mexico and into the United States.
Merhay pled guilty today before U.S. District Judge Reggie B. Walton of the District of Columbia, and is scheduled for sentencing on Dec. 16, 2014. Merhay was in the custody of Moroccan authorities between his arrest in Marrakech, Morocco, in August 2013 and extradition to the United States on April 25, 2014.
The investigation was led by HSI’s Washington, D.C., Field Office, with the support of the Human Smuggling Trafficking Center and the U.S. Customs and Border Protection’s National Targeting Center. This case is being prosecuted by Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Frederick Yette of the District of Columbia. The extradition was handled by Dan E. Stigall of the Criminal Division’s Office of International Affairs.
The Department of Justice and HSI expressed their appreciation for the significant assistance provided by the Moroccan Ministry of Justice.
14-215Federal Prison Guard Convicted of Attempting to Smuggle Cell Phone into Prison for an InmateRead the Press Release
Dublin, GA: Meagan Deaton, 23, from Douglas, Georgia, pled guilty and was sentenced earlier this week in federal court in Dublin, Georgia, for her role in attempting to smuggle a cell phone into a federal prison facility for an inmate.
According to evidence presented during the guilty plea hearing, Deaton, a former Federal Bureau of Prisons (BOP) Contract Correctional Officer assigned to the Correctional Institution in McRae, Georgia attempted to provide a cell phone to an inmate on October 17, 2013 in exchange for money. After entering her plea of guilty, Deaton was sentenced to 30 days in prison, 60 hours of community service, and one year of supervised release.
United States Attorney Edward Tarver said, “This defendant chose to place her own selfish interests above the safety of other BOP employees and the public she was sworn to protect. Those who attempt to smuggle contraband into federal prisons can expect to join the inmates from whom they are attempting to profit.”
Bob Bourbon, Special Agent in Charge, U. S. Department of Justice, Office of the Inspector General, said: “Introducing contraband such as cellphones into a prison is dangerous and can place BOP employees and other inmates in the institution at risk. This has been a successful team effort to identify, investigate, and prosecute this matter.”
The case was investigated the U. S. Department of Justice, Office of the Inspector General. Assistant U. S. Attorney Carlton Bourne prosecuted the case on behalf of the United States.
Federal Jury Convicts Leaders of Violent Drug Trafficking OrganizationRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today the convictions of the leader of a violent drug trafficking organization and two of his lieutenants following a multi-week jury trial.
The leader, JEFFERY D. PERRY, age 31, of Baton Rouge, Louisiana, was convicted of conspiracy; seven other drug trafficking charges involving crack and powder cocaine; carjacking; and five charges involving the possession and use of firearms while being a felon and in furtherance of crimes of violence and drug trafficking. PERRY faces a mandatory minimum term of imprisonment of 45 years.
JERMAINE J. CHAPMAN, age 32, of Baton Rouge, Louisiana, was convicted of conspiracy; six other drug trafficking charges involving crack and powder cocaine; and possessing a firearm in furtherance of drug trafficking. CHAPMAN faces a mandatory minimum term of imprisonment of 25 years.
CHARLES BOYER, age 50, of Baton Rouge, Louisiana, was convicted of conspiring to distribute crack and powder cocaine. BOYER faces a mandatory minimum term of imprisonment of 10 years.
A sentencing date for these defendants has not yet been set. The jury acquitted a fourth defendant on the only count in which he was charged. In addition to the four defendants who went to trial, four other defendants previously pled guilty to their involvement in the drug trafficking conspiracy.
U.S. Attorney Walt Green stated: “Baton Rouge is truly a safer place without these defendants on the streets. The level of violence and depravity engaged in by this group made this prosecution essential. I am very proud of the prosecutors and agents who worked so hard to ensure that justice was done. This is another great example of how federal, state, and local collaboration can make our communities safer.”
The case was investigated by the Drug Enforcement Administration (DEA), the Baton Rouge City Police, and the West Baton Rouge Parish Sheriff’s Office. This case was prosecuted by Assistant United States Attorneys Robert W. Piedrahita, who serves as Litigation Counsel, and J. Christopher Dippel, Jr.
Fake Nurse Sentenced to 4-year Prison TermRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that United States District Judge Brian S. Miller sentenced Susan Elaine Boyce, 60, formerly of Pleasant Plains, Arkansas, to four years in prison to be followed by three years of supervised release. Judge Miller also ordered Boyce to pay $175,099.24 in restitution to the Searcy Special School District.
Boyce was indicted by a federal grand jury on September 5, 2012. The seven-count indictment charged her with wire fraud, aggravated identity theft and misuse of a social security number. Boyce used an Arkansas State Board of Nursing license number and a Social Security Number belonging to another person to obtain employment as a school nurse in Searcy, Arkansas, from the 2007-08 school year through the 2011-12 school year. On February 26, 2014, Boyce pleaded guilty to one count of wire fraud, one count of aggravated identity theft, and one count of misuse of a Social Security Number.
The matter was investigated by Special Agent Jeffrey Hannah of the Office of the Inspector General for the U.S. Department of Health and Human Services and Special Agent Mark McElrath of the Office of the Inspector General of the Social Security Administration. Assistant United States Attorney Alexander Morgan prosecuted the case for the United States.
Enzo Biochem, Inc. and Enzo Clinical Laboratories Pay $3.5 Million to Resolve Civil Fraud AllegationsRead the Press Release
U.S. Attorney Loretta E. Lynch today announced that the United States and New York State have entered into a settlement agreement with Enzo Biochem, Inc., and one of its subsidiaries, Enzo Clinical Laboratories (collectively, “Enzo”), to resolve a case brought under the federal False Claims Act and the New York False Claims Act. The matter involves allegations that Enzo wrongfully input diagnosis codes into claim forms that it submitted for payment to the Centers for Medicare & Medicaid Services (“CMS”). Under the terms of the Settlement Agreement, Enzo will pay a total of $3,510,245.94 to resolve the investigation.
The investigation established that, from at least January 1, 2004 through the present, Enzo unlawfully input diagnosis codes into claims forms it submitted to CMS. Specifically, when a physician ordered tests to be performed at Enzo but did not submit a diagnosis code to go along with the order, Enzo employees would select and assign codes which they believed would be most likely to lead to reimbursement from CMS. Enzo did not – as it was required to do – go back to the physician to obtain the missing code. Through this unlawful practice, Enzo wrongfully obtained reimbursement from CMS.
The settlement followed a joint investigation by the United States Attorney’s Office for the Eastern District of New York and the New York Attorney General’s Medicaid Fraud Control Unit, who worked in partnership to uncover the wrongdoing and reach a resolution. U.S. Attorney Lynch thanked Attorney General Schneiderman and his staff for their cooperation in this case.
“The investigation uncovered evidence that Enzo was falsifying information in the claim submission process in order to inflate and secure reimbursements from CMS,” stated United States Attorney Lynch. “The Medicare and Medicaid systems serve our most vulnerable citizens, and those who seek to maximize their own profits at the expense of these critically important programs will be pursued to the fullest extent of the law.”
The investigation commenced with the filing of a qui tam complaint by Relator O and U 2011 Partnership LLP. Under the federal and state False Claims Act statutes, a private individual who has uncovered fraud against the government may file a suit in federal court on behalf of the United States and the State of New York. If the United States and the State are successful in resolving those claims, the individual who filed the complaint may receive a share
of the recovery.
The United States’ investigation was handled by Assistant U.S. Attorney Kenneth M. Abell and Trial Attorney David M. Finkelstein of the Commercial Litigation Branch, United States Department of Justice, with assistance from Affirmative Civil Enforcement Auditor Emily Rosenthal and Special Agent Jason S. Villeco of the Department of Health and Human Service’s Office of Inspector General. The state investigation was handled by Special Assistant Attorney General Carolyn Ellis.
El Departamento de Justicia Busca Cerrar Operaciones de Preparadora de Declaraciones de Impuestos de FiladelfiaRead the Press Release
WASHINGTON – Los Estados Unidos le pidieron a un tribunal federal en Filadelfia que prohibiera en forma permanente a Denise Miller Almanza y su empresa, Denise's Centro de Servicios, PC, preparar declaraciones de impuestos federales para terceros, anunció hoy el Departamento de Justicia. De acuerdo con la demanda, Almanza declaró indebidamente ingresos de sus clientes inferiores a los reales o reclamó indebidamente créditos tributarios en sus declaraciones, haciendo que los clientes recibieran reintegros de impuestos indebidos o reintegros por valores superiores a los que tenían derecho. Almanza y su empresa prepararon más de 14,000 declaraciones de impuestos federales desde 2010, de acuerdo con la demanda.
La demanda, entablada en el Tribunal Federal de Distrito para el Distrito Este de Pensilvania, alega que Almanza reclamó indebidamente crédito tributario adicional por hijo en las declaraciones de impuesto a la renta de clientes, lo que permitió que sus clientes recibieran, en promedio $2,900 de beneficios indebidos por declaración de impuestos. En total, la demanda alega que las actividades de Almanza a lo largo de los últimos cuatro años le costaron potencialmente al Tesoro de EE.UU. millones de dólares en ingresos tributarios perdidos.
El fraude de preparación de declaraciones de impuestos es uno de los ardides de la Docena sucia de ardides tributarios de 2014 del Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El IRS tiene algunos consejos en su portal en Internet para la elección de un preparador de impuestos. En la última década, la División de Impuestos del Departamento de Justicia ha obtenido interdictos contra cientos de preparadores de impuestos inescrupulosos. Se puede encontrar información sobre estos casos en el portal del Departamento de Justicia.