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19 September 2014
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Henry C. Purifoy, III, 23, of Fort Wayne, Indiana pled guilty to the felony offense of being a convicted felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris King.
- Derrell L. Hayes, 29, of Fort Wayne, Indiana pled guilty to the felony offense of being a convicted felon in possession of a firearm. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Allen County Police Department. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Edward Williams, 32, of Fort Wayne, Indiana, was sentenced to 120 months imprisonment with 2 years supervised release after pleading guilty to the felony offenses of being a convicted felon in possession of a firearm and possession with intent to distribute crack. According to documents filed in this case, Williams participated in selling cocaine and a firearm to a confidential informant (CI). During the course of this investigation, Williams had made arrangements to meet the CI at an established location. Williams was seen arriving, entering and exiting the residence carrying a Nike shoe box. When Williams left the residence, he was stopped by police and a firearm and crack cocaine were found inside the Nike shoe box. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
Washington, D.C. Man Sentenced for Role in 2013 String of Armed Bank RobberiesRead the Press Release
ALEXANDRIA, Va. – Tayron Tyree Weeks, 24, of Alexandria, pleaded guilty yesterday to engaging in the sex trafficking of a child.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and Earl L. Cook, Alexandria Chief of Police, made the announcement after the plea was accepted by U.S. District Judge T. S. Ellis, III.
In a statement of facts filed with the plea agreement, Weeks admitted that he met a 14-year-old girl at the Braddock Road Metro Station and eventually took the girl to a friend’s apartment in Alexandria, where Weeks engaged in sexual acts with her. Weeks then asked the victim if she was interested in earning money by selling her body, and Weeks encouraged the girl to do so. The victim told Weeks that she was only 14 years old, and Weeks responded “money is money,” and something to the effect of “You might as well get paid for something most girls do for free.”
The victim eventually contacted the police and allowed the police to use her Facebook account. While posing as the victim, police personnel told Weeks about a fictitious girl named “Alisha,” who purportedly wanted to be prostituted. A Fairfax County Police detective posed as “Alisha” and called Weeks on the telephone. Weeks described to “Alisha” how the prostitution would work. Weeks also informed “Alisha” that she and the victim would perform sex acts with the same customer because customers would pay more for this simultaneous service.
On a few occasions, Weeks and “Alisha” discussed the unlawfulness of prostituting underage girls, and Weeks conceded to “Alisha” that his prostitution of the victim and “Alisha” could result in imprisonment for many years. Weeks also informed a friend that he intended to prostitute underage girls, and the friend told Weeks that such conduct would constitute “sex trafficking,” that sex trafficking was unlawful and immoral, and that this conduct would likely result in Weeks being imprisoned. Weeks responded that he did not think the police would catch him.
Weeks faces a maximum penalty of life in prison when he is sentenced on Dec. 12, 2014. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the Fairfax County Police Department, the FBI’s Washington Field Office, and the Alexandria Police Department. Assistant U.S. Attorney Michael J. Frank is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-313.Washington, D.C. Man Sentenced for Role in 2013 String of Armed Bank RobberiesRead the Press Release
ALEXANDRIA, Va. – James Link, 57, of Washington, D.C., was sentenced today to 35 years in prison, followed by five years of supervised release for two counts of brandishing a firearm during a crime of violence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office; and M. Douglas Scott, Arlington County Chief of Police, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III.
According to court records, the FBI identified Link and co-defendants James McNeal, 63, of Hyattsville, Maryland, and Alphonso Stoddard, 59, of Forest Heights, Maryland, as possible suspects in a string of bank robberies in late 2013. On Dec. 27, 2013, Link, McNeal and Stoddard were followed by law enforcement agents as they cased two banks in Arlington, Virginia. One of the banks the defendants were seen casing was a Wells Fargo branch on South George Mason Drive.
On Dec. 31, 2013, McNeal left his residence in Hyattsville and picked up Link and Stoddard before returning to the Wells Fargo branch in Arlington. At approximately 1:15 p.m., Stoddard and Link entered the bank. Inside the bank, Link brandished a firearm while Stoddard removed approximately $47,000 in cash from teller drawers. The two men exited the bank and returned to the vehicle where McNeal was waiting. The FBI and Arlington police officers arrested the defendants shortly after exiting the Wells Fargo branch. A handgun and cash were found in the vehicle.
A search of McNeal’s house led to the discovery of an additional firearm believed to be used in earlier bank robberies, cash and gloves. Stoddard admitted to his involvement in armed robberies at a Wells Fargo in Rockville, Maryland on Oct. 29, 2013 and the Bank of Georgetown in Vienna, Virginia on Oct. 30, 2013. Link admitted he was involved in the Bank of Georgetown robbery and an armed robbery at a Wells Fargo in Arlington on Nov. 25, 2013.
Link pleaded guilty to two counts of brandishing a firearm during a crime of violence and admitted his involvement in four bank robberies. Stoddard was convicted at an August 2014 trial on charges involving three separate bank robberies, and McNeal was convicted for his involvement in one bank robbery. Stoddard faces a mandatory life sentence because of prior convictions for armed bank robberies, and McNeal faces a mandatory minimum sentence of seven years and a maximum sentence of life in prison. Stoddard and McNeal will be sentenced on Nov. 7, 2014.
The investigation was conducted by the FBI’s Washington Field Office, with assistance from FBI’s Baltimore Division and the Arlington County and Fairfax County police departments. The U.S. Attorney’s Offices for the District of Columbia and the District of Maryland also provided assistance in the investigation. Special Assistant U.S. Attorney Jennifer A. Clarke is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-76.
Washington, D.C. Man Admits to Taking A Nine Year Old Girl to His Government Office to Have SexRead the Press Release
Agrees to be Sentenced to Between 144 and 210 Months
Greenbelt, Maryland – Kevin Robinson, age 53, of Washington, D.C., pleaded guilty today to transporting a minor to engage in sex.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Chief of Police Robert D. MacLean of the U.S. Park Police; and Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
According to his plea agreement, on October 18, 2013, Robinson drove a nine year old girl and her parents to their home from a dental appointment, and dropped the parents off. Robinson then drove with the girl and other passengers to his girlfriend’s house, where he dropped off the other passengers. Robinson drove the girl to the Beltsville Agricultural Research Center (BARC) in Greenbelt, Maryland where he worked.
They entered his office and the girl began playing games on Robinson’s computer. Robinson then told the victim to remove her clothes. Robinson licked the victim’s chest and bit her breast, cutting the skin and causing a mark. Robinson attempted to have sex with her and the victim told him to stop. The victim put her clothes back on and they left BARC.
Once in his vehicle, Robinson told the victim to perform oral sex, which she did. Robinson then drove the victim back home. The victim told her parents what happened. The parents called the police. The victim was taken to the hospital. DNA analysis identified Robinson’s saliva on the victim’s breast.
As part of his plea agreement, Robinson must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
Robinson and the government have agreed that if the Court accepts the plea agreement, Robinson will be sentenced to between 144 to 210 months in prison followed by a lifetime of supervised release. U.S. District Judge Roger W. Titus has scheduled sentencing for January 14, 2015 at 10:00 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the U.S. Park Police and HSI Baltimore for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Hollis Weisman, who prosecuted the case.
United States Attorney’s Office Announces Sentence in Child Pornography CaseRead the Press Release
Kokomo man sentenced to 72 months for distributing child pornography
INDIANAPOLIS – Josh J. Minkler, the Acting United States Attorney, announced today the sentencing of a Kokomo man for distribution of child pornography. Brandon Tooley, 33, Kokomo, was sentenced to 72 months (six years) by U.S. District Judge Sarah Evans Barker.
“This Office initiated Operation Community Watch over two years ago with an unwavering resolve to find and prosecute those who exploit our children,” Minkler said. “You are not anonymous online and if you engage in this type of behavior, you will be held accountable.
On October 2, 2013, a federal search warrant was executed on Tooley’s Yahoo! Inc. email account. Agents from Immigration and Customs Enforcement, Homeland Security Investigations (HSI ), discovered emails distributed and received by Tooley that were determined to contain image and video files of child pornography. Two days later, agents acting in an undercover capacity, made contact over Yahoo! Messenger with Tooley. During that conversation, Tooley distributed to the agents an image which was determined to be of a minor engaging in sexually explicit conduct.
On October 7, 2013, federal agents served a search warrant at Tooley’s residence. Agents located an HP desktop computer in the living room of the residence next to the television which was being used as a monitor for the computer. A forensic analysis of the HP desktop computer revealed approximately 45 videos and over 100 images of child pornography.
This case was investigated by HSI and the Hamilton County Metro Child Exploitation Task Force.
“Those who trade child pornography over the Internet mistakenly believe that cyberspace shields them from detection by law enforcement," said Gary Hartwig, special agent in charge for HSI Chicago. "However, as this sentence makes abundantly clear, child sex predators will be caught, prosecuted, and handed the justice they deserve for their despicable actions.”
According to Assistant U.S. Attorney MaryAnn T. Mindrum, who prosecuted this case for the government, Tooley faces ten years of supervised release after serving his sentence.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. The greatest measure of the PSC program’s impact is the identification and rescue of child victims of sexual exploitation and abuse.
Led nationally 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.
Two Sentenced for Structuring Financial TransactionsRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer,United States Attorney for the Eastern District of Arkansas, and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office announced today that Unites States District Judge D.P. Marshall, Jr. sentenced Anas N. Atrach of McAllen, Texas, to 3 years’ probation, the first six months of probation TO be home detention with electronic monitoring. Atrach was also ordered to serve 300 hours of community service with at least 100 hours each year. A $5,000 fine plus interest was imposed to be paid immediately or at least $500 per month. A Cadillac Escalade was forfeited. Anas N. Atrach pled guilty to one count of Conspiracy to Structure Currency Transactions on April 10, 2014.
Special Agent in Charge Henry commented, “Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act. Deliberately avoiding BSA requirements is a form of money laundering that will be vigorously investigated by IRS Criminal Investigation."
In March 2013, Doris Ann Miles, Anas N. Atrach, and Anwar Alatrach were indicted by a federal grand jury for conspiracy to structure currency transactions, structuring, and causing a business to file a report containing a material omission and/or misstatement.
The charges in the Superseding Indictment, state that in July 2011, Doris Ann Miles, Anas N. Atrach, and Anwar Alatrach knowingly and intentionally conspired with each other to structure currency transactions with financial institutions in order evade the reporting requirements of those financial institutions. The structured currency was used to purchase a 2011 Cadillac Escalade in the amount of $82,035. The Escalade was ordered and a down payment was made with a $9,800 cashier’s check from an e-Banking account at Bank of America in Little Rock on July 22, 2011. On July 25, 2011, Miles deposited and then purchased a cashier’s check for $9,800. On July 26th, Miles and Anas N. Atrach both gave separate unnamed individuals $9,800 cash to purchase a cashier’s check. On July 27, 2011, Miles gave another two individuals cash and Atrach gave two individuals cash to purchase cashier’s checks. That same day, Anwar Alatrach deposited $9,800 in cash at a bank in Little Rock to purchase a cashier’s check. All of the cashier’s checks were taken to Parker Cadillac, Inc. on July 27, 2011. The next day, July 28th, Miles and Alatrach picked up the 2011 Escalade after Alatrach paid the remaining $200 balance with a VISA checkcard.
On January 29, 2014, Doris Ann Miles, 53, of Eldorado, pled guilty to one count of Conspiracy to Structure Currency Transactions. Miles was sentenced May 15, 2014, to 3 years’ probation and 120 hours of community service. She is required to perform at least 40 hours of community service each year. The forfeiture of the Cadillac Escalade is final as to Miles also.
After his indictment, Anwar Alatrach did not appear for his initial appearance and the judge then issued a bench warrant for his arrest. He is currently a fugitive.
The case was investigated by IRS-Criminal Investigation with valuable assistance from the Benton Police Department. Assistant United States Attorneys Jana K. Harris and Assistant United States Attorney Cameron C. McCree prosecuted the case for the United States.
Tampa Man Sentenced to 30 Years in Prison for Producing Child Pornography on MacDill Air Force BaseRead the Press Release
Tampa, Florida – U.S. District Judge Richard A. Lazzara sentenced Erich Clifford Mandell Ramos (27, Tampa) today to 30 years in federal prison for production of child pornography. The Court also ordered him to serve a lifetime of supervision and to register as a sex offender following his release from prison. He pleaded guilty on June 20, 2014.
According to court documents, Mandell Ramos sexually abused a minor while visiting a home at MacDill Air Force Base. He took sexually explicit photographs of the minor victim and instructed her not to tell her mother. Mandell Ramos paid the minor approximately $20.00. At the time of the offense, the victim was less than 12 years old.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Stacie B. Harris.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.
Seven Southern Illinois Residents Plead Guilty to Drug OffensesRead the Press Release
Follow @SDILNewsSeven Southern Illinois residents have plead guilty to drug offenses in federal court in Benton, Illinois, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
On September 17, 2014, Maurice L. Robinson, a/k/a “Ray Ray,” 34, and Harold Lawayne Barron, a/k/a “Wayne,” 51, both of Murphysboro, pled guilty to conspiracy to distribute crack cocaine. The crack cocaine offense occurred between May 2013, and September 2013, in Jackson County. Additionally, Barron pled guilty to conspiracy to manufacture methamphetamine. The methamphetamine offense occurred between August 2012, and October 2013, in Jackson and Perry Counties. Both offenses carry penalties of up to 20 years in federal prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Robinson and Barron are currently being held without bond pending December 22, 2014, sentencing hearings. Co-defendant Jamie Kay Kelly, a/k/a “Jamie K.” and “Jamie K. Short,” previously pled guilty to the crack cocaine and methamphetamine offenses.
In a separate case, On September 17, 2014, Jeffry M. Presutti, Jr., 37, of Pomona, Illinois, pled guilty to an indictment charging conspiracy to manufacture methamphetamine. The offense occurred between April 2013 and October 2013, in Jackson County. Evidence at the plea hearing established that Presutti was involved with others in the manufacture of methamphetamine. Presutti sometimes manufactured methamphetamine at his Pomona residence. In October 2013, police officers and DCFS workers went to Presutti’s residence to investigate complaints that Presutti was manufacturing methamphetamine inside the residence, when children were present. Officers recovered a methamphetamine lab and observed evidence of multiple burned areas inside the residence. Presutti suffered methamphetamine-related burns when he fled from the officers. The methamphetamine offense carries a penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Presutti is currently being held without bond pending a December 22, 2014, sentencing hearing.
Again, on September 17, 2014, Sarah Lindsey, 30, of Marion, Illinois, pled guilty to an indictment charging conspiracy to manufacture methamphetamine. This offense occurred between 2012 and January 22, 2014, in Williamson and Jackson Counties. Evidence at the plea hearing established that Lindsey was involved with others in the manufacture of methamphetamine. Lindsay obtained pseudoephedrine pills for herself or others to use to manufacture methamphetamine. During a January 22, 2014, Illinois Department of Corrections compliance check, agents located a methamphetamine lab at Lindsey’s Marion residence. This methamphetamine offense carries a penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Lindsey is currently being held without bond, pending a January 8, 2015, sentencing hearing.
Also, on September 17, 2014, Frank R. Johnson, a/k/a “Mo,” 44, of Elkville, Illinois, pled guilty to a one-count indictment charging conspiracy to distribute heroin. Evidence at the plea hearing established that Johnson was transporting ounce amounts of heroin from northern Illinois to Elkville for distribution. On numerous occasions, Johnson sold heroin to a confidential source working for law enforcement and to an undercover agent. When agents executed a search warrant at Johnson’s residence, they recovered heroin, digital scales, drug packaging materials, and a large amount of U.S. currency. The offense occurred between 2012 and January 2014, in Jackson and Franklin Counties. The heroin offense carries a penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000. Johnson is currently being held without bond, pending a January 7, 2015, sentencing hearing.
Finally, on September 17, 2014, Brandon K. Craig, 31, of Carbondale, and Larry E. Recar, 38, of Murphysboro, each pled guilty to an indictment charging conspiracy to manufacture methamphetamine. This offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. Evidence at the plea hearings established that Craig and Recar were involved with others in the manufacture of methamphetamine. Other persons supplied pseudoephedrine pills to Craig and Recar to use to manufacture methamphetamine. Two co-defendants have previously been sentenced for their role in the methamphetamine conspiracy. Two co-defendants have pled guilty and are awaiting sentencing. Six co-defendants have pled not guilty and are awaiting jury trial. Possible punishment includes a penalty of up to 20 years in prison, followed by 3 years’ supervised release, and a fine of $1,000,000. Craig and Recar are also being held without bond pending January 7, 2015, sentencing hearings.
All of these ongoing investigations were conducted by the Jackson County Sheriff’s Office, Southern Illinois Enforcement Group, Murphysboro Police Department, Illinois State Police, and the Drug Enforcement Administration. The Jackson County State’s Attorney’s Office assisted in the investigation.
All of the cases are assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
September Grand JuryRead the Press Release
United States Attorney Deborah R. Gilg announced the federal Grand Jury for the District of Nebraska has returned 25 indictments charging 27 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Fredy Aguilar-Portilo, age 31, Jose Salazar-Billalba, age 44, and Daniella Erickson, age 37, are charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine and 5 kilograms or more of a mixture containing cocaine from an unknown date but at least as early as August 23, 2014, up to and including August 28, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Inocente Bonilla-Fraire, age 34, of Omaha, is charged with illegal reentry into the United States on or about August 19, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Adrian Montoya Carlos, aka Ariel Montoya Carlos, age 29, of Lincoln, is charged with being an illegal alien in possession of a firearm and ammunition on or about September 3, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Raul Delgado-Medina, age 51, is charged in a four-count Indictment. Count I of the Indictment charges the defendant with conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine from an unknown date but at least as early as August 7, 2014, up to and including September 5, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Counts II, III and IV of the Indictment charge Delgado-Medina with possession with intent to distribute 50 grams or more of methamphetamine on or about August 8, 2014, on or about August 29, 2014 and on or about September 5, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment for each count.
* James Kim Gatluak, aka Kim J. Gatluak, aka James Keem Gatluak, age 25, of Omaha, is charged with being a felon in possession of a firearm and ammunition on or about September 2, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.* Levi Hallett, age 26, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with production of child pornography on or about May 17, 2013. The maximum possible penalty if convicted is not less than 15 years in prison up to 30 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count II of the Indictment charges Hallett with receipt and distribution of child pornography from on or about December 4, 2012 to on or about August 27, 2013. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. Count III of the Indictment charges the defendant with possession of child pornography from on or about December 4, 2012 to on or about August 27, 2013. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, supervised release for Life, and a $100 special assessment. The indictment also alleges property used or intended to be used as part of this violation should be forfeited to the United States.
* Larry L. Hathaway, age 54, of Union, Nebraska, is charged in a two-count Indictment. Count I of the Indictment alleges on or about May 25, 2011, the defendant submitted fraudulent statements on behalf of Lake WaConDa and Cass County SID #1 to the Federal Emergency Management Agency (FEMA) by submitting claims exceeding $245,000 for repairs to a boat ramp and boat trailer parking area knowing the statements were false. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Hathaway with making false claims to FEMA on or about May 25, 2011. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Juan Andres Garcia Ibarra is charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture containing methamphetamine from an unknown date but at least as early as September 2, 2014, up to and including September 3, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Juan Francisco Jaime-Gayton, age 35, of Omaha, is charged in a three-count Indictment. Count I of the Indictment charges the defendant with misuse of a Social Security Number on or about March 26, 2012. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment alleges on or about March 26, 2012, the defendant made a false statement and claimed to be a United States citizen with the intent to receive Federal and State benefits and to be employed in the United States. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count III of the Indictment charges that on or about March 26, 2012, Jaime-Gayton misused a Social Security Card and a State of Nebraska Identification Card, knowing that said documents were not issued lawfully for his use. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Sonia Lopez-Perez, age 35, of Crete, Nebraska is charged in a two-count Indictment. Count I of the Indictment alleges the defendant misused a Social Security Card and a Missouri Identification Card, knowing that said documents were not issued lawfully for her use on or about April 12, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendant with misuse of a social security number on or about April 12, 2013. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Cirilo Mendez-Parra, age 34, of Omaha, is charged with illegal reentry into the United States on or about July 28, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment.
* Enrique Najar, age21, and Brett Booker, age 20, are charged in a nine-count Indictment. Count I of the Indictment charges the defendants with conspiracy to distribute and possess with intent to distribute a mixture containing 25B-NBOMe, beginning on or about March 1, 2014, and continuing to on or about September 10, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Counts II, III, IV, V, VI, and VII of the Indictment charge Najar with distribution of a mixture containing 25B-NBOMe on or about March 26, 2014, April 9, 2014, April 29, 2014, June 18, 2014, July 16, 2014, and July 24, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count. Count VIII of the Indictment charges Najar with possession with intent to distribute a mixture containing 25B-NBOMe on or about September 10, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. Count IX of the Indictment charges Booker with possession with intent to distribute a mixture containing 25B-NBOMe on or about September 10, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, including but not limited to United States currency seized on September 10, 2014 at the residence of the defendant Brett Booker should be forfeited to the United States.
* Jose Orellana-Sales, age 38, of Omaha, is charged with illegal reentry into the United States on or about September 9, 2014, following deportation as a felon. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Wilfredo Rodriguez-Ortega, age 29, is charged with distribution of 50 grams or more of methamphetamine on or about July 2, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Becky Ryan, age 44, of Valparaiso, Nebraska, is charged in an eight-count Indictment. Counts I thru VIII of the Indictment charge Ryan with aiding and assisting in the preparation of eight different fraudulent U.S. Individual Income Tax Returns, Form 1040, on behalf of various taxpayers. The maximum possible penalty if convicted is 3 years imprisonment, a $250,000 fine, a 1 year term of supervised release, and a $100 special assessment for each count.
* Sergio Adrian Saldana-Arredondo, age 30, of Omaha, is charged with illegal reentry into the United States on or about September 3, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Jose J. Solorzano-Farias, age 24, of Las Vegas, Nevada and Jose A. Solorio-Salinas, age 33, of Burnsville, Minnesota, are charged in a two-count Indictment. Count I of the Indictment charges the defendants with possession with intent to distribute 500 grams or more of a mixture containing methamphetamine on or about September 6, 2014. The maximum possible penalty if convicted is Life imprisonment, a $10,000,000 fine, a 5 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges the defendants with possession with intent to distribute 100 grams or more of a mixture containing heroin. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment.
* Felix C. Uzoechi, age 48, of Omaha, is charged in a three-count Indictment. Uzoechi is the owner and operator of Kabada Enterprises, L.L.C., doing business as African Farms, a retail grocery store. The indictment alleges Uzoechi committed fraud by allowing the benefits to be exchanged for cash. Counts I, II and III of the Indictment charge Uzoechi with exchanging benefits for cash on April 4, 2014, June 3, 2014 and July 2, 2014. The maximum possible penalty if convicted is 5 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment for each count.
* Shantoria Valentine-Deguenon, age 23, of Omaha, is charged with bank robbery of approximately $1,213 from Wells Fargo Bank, 4725 South 84th Street, Ralston, Nebraska, on or about July 28, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Alberto Sanchez Villareal, age 37, is charged with possession with intent to distribute 5 grams or more of methamphetamine on or about August 19, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. The indictment also alleges any and all property constituting or derived from any proceeds obtained directly or indirectly as a result of the violation alleged in Count I of the indictment, including but not limited to $10,247.00 in United States currency seized from 7416 Blondo Street, Apartment #1, Omaha, Nebraska, on August 19, 2014, should be forfeited to the United States.
* Phillip M. Weber, age 38, is charged with car jacking a 2005 Mitsubishi Lancer from a person by force, violence, and intimidation, with the intent to cause death and serious bodily harm on or about June 6, 2014. The maximum possible penalty if convicted is 15 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Daniel Webster III, age 22, of Macy, Nebraska, is charged with second degree murder on or about August 28, 2014. The maximum possible penalty if convicted is Life imprisonment, a $250,000 fine, a 5 year term of supervised release, and a $100 special assessment.
* Robert Weikle, age 44, is charged in a two-count Indictment. Count I of the Indictment charges the defendant with possession with intent to distribute 5 grams or more of methamphetamine on or about August 5, 2014. The maximum possible penalty if convicted is 40 years imprisonment, a $5,000,000 fine, a 4 year term of supervised release, and a $100 special assessment. Count II of the Indictment charges Weikle with distribution of a mixture containing methamphetamine on or about February 25, 2014. The maximum possible penalty if convicted is 20 years imprisonment, a $1,000,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Yusuf Xasan, age 21, of Grand Island, is charged with possession of a stolen firearm and ammunition on or about August 19, 2014. The maximum possible penalty if convicted is 10 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.
* Arturo Zepeda-Tovar, age 30, of Omaha, is charged with illegal reentry into the United States on or about August 25, 2014, following deportation. The maximum possible penalty if convicted is 2 years imprisonment, a $250,000 fine, a 3 year term of supervised release, and a $100 special assessment.Seattle Gang Member Sentenced to 8+ Years in Prison for Illegal Firearm PossessionRead the Press Release
A Seattle man with known gang ties was sentenced today in U.S. District Court in Seattle to 101 months in prison following his conviction at trial for being a felon in possession of a firearm, announced U.S. Attorney Jenny A. Durkan. JIMMY GENE MILLER, 29, was arrested on June 13, 2013 after Seattle Police responded to reports of a beating behind a nightclub in Seattle’s Capitol Hill neighborhood. MILLER was convicted following a three day jury trial. At sentencing U.S. District Judge Richard A. Jones said MILLER had continued a pattern of “violence and drug dealing that had gone on for many years,” and he noted the danger “of bringing a firearm into a public arena.”
“Too many youths in our community are lost to the lure of gangs and the violence they breed,” said U.S. Attorney Jenny A. Durkan. “This defendant, barely six months out of prison, thought he could rule the streets through violence and intimidation. He guessed wrong. I commend the FBI and Seattle Police Department for their quick work on this case, and bringing him to justice.”
“Seattle embraces diverse groups and people working together for the community, not those trying to rip it apart,” said Special Agent in Charge Frank Montoya, Jr. of the FBI’s Seattle Division. “It is imperative that people like Jimmy Gene Miller face justice for their heinous violence. The FBI will continually stand with the Seattle Police Department against gangs, against criminals, and against those who attempt to bring violence to our streets.”
According to records in the case and testimony at trial, MILLER encountered a rival gang member at ‘The Garage,’ a bar/pool hall/bowling alley on Capitol Hill in Seattle. MILLER flashed a firearm in the waistband of his pants as he took the victim out the alley door of the nightclub. In the alley MILLER assaulted the victim. Portions of the assault were captured on surveillance video. The victim was found stripped naked and beaten. The surveillance cameras photographed MILLER jumping into the passenger seat of a distinctive black Camaro. Seattle Police moved quickly after getting reports on the assault, locating the car a few miles from the club. MILLER and his associates were found nearby. The victim’s wallet was found in the front passenger seat. A court-authorized search of the car revealed a .40 caliber Glock pistol in the glove compartment in front of where MILLER had been sitting. Text messages introduced at trial revealed MILLER discussing an extended magazine for the semi-automatic weapon with an associate in the weeks before the assault.
MILLER was prosecuted as part of the U.S. Attorney’s Office’s comprehensive and strategic approach to gun law enforcement. In King County the close partnerships between federal, state and local prosecutors and law enforcement allows these programs to be effective and enhances public safety.
The case was investigated by the FBI Seattle Safe Streets Task Force, which is composed of the FBI, Seattle Police Department, and other law enforcement partners. The case was prosecuted by Assistant United States Attorneys Vince Lombardi and Jerrod Patterson.
Rothstein Associates Charged with Conspiracy to Commit Wire FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of charges against David Boden, 52, of Hallandale Beach, and Richard L. Pearson, 57, of Miami, for conspiring to commit wire fraud in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
According to the information which was filed earlier today, Boden was an attorney who, in April 2008, began employment at RRA as a non-equity shareholder. Pearson agreed to act as a broker for Rothstein’s settlements. In February 2009, Boden began assisting Pearson in the sale of the settlements. Pearson would receive a sales commission from Rothstein derived from the money paid by the investor, and would pay a portion of that sales commission to Boden for his services. Beginning in September 2009, a group of investors (hereinafter referred to as “the Investor Group”) began investing in the confidential settlement agreements following a meeting with Rothstein. Boden and Pearson agreed that the Investor Group would pay a sales commission directly to Pearson. The Investor Group was not informed by Boden or Pearson that they were also receiving an additional undisclosed sales commission from the money paid by the Investor Group to Rothstein. The information further charges that Boden and Pearson, through material misstatements and omissions made to the Investor Group, caused it to incur a loss of approximately $2,400,000.
If convicted, the defendants face a maximum statutory sentence of up to five years in prison.
Mr. Ferrer commended the investigative efforts of the IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and 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.
Rochester Man Arrested, Charged with Enticing, Threatening MinorRead the Press Release
ROCHESTER, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Johnnie Jones, 31, of Rochester, NY, was arrested and charged in a criminal complaint with enticing a minor to engage in sexual acts, and with threatening the minor with the intent to tamper with evidence. The charges carry a minimum sentence of 10 years in prison and a maximum of life.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, Jones communicated with a minor by mobile telephone. The defendant repeatedly sent the minor sexually explicit messages over a period of several weeks and attempted to entice the minor to have sex with him. Jones also threatened to kill the minor and the minor’s family members if the minor did not delete the incriminating messages and images that he had sent.
Jones made an initial appearance today before U.S. Magistrate Judge Jonathan Feldman. The defendant is being held pending a detention hearing on September 26, 2014 at 9:30 a.m.
The criminal complaint is the culmination of an investigation by Special Agents of Federal Bureau of Investigation.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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.Previously Deported Mexican National Pleads Guilty to Aggravated ID Theft and Drug and Firearms OffensesRead the Press Release
SACRAMENTO, Calif. — Eliecer Reyes Huerta, 31, a Mexican national residing in Vallejo, pleaded guilty today to possessing methamphetamine with intent to distribute, unlawfully possessing a firearm, and aggravated identity theft arising from false statements he made in an application for a U.S. passport, United States Attorney Benjamin B. Wagner and U.S. Department of State, Diplomatic Security Service Special Agent-In-Charge David Zebley announced.
According to court documents, Huerta is a removable alien who was previously removed from the United States in 2006 and lacks lawful immigration status to be in the United States.
On July 30, 2012, Huerta submitted an application for a U.S. passport to a passport acceptance officer in Vallejo. In the application, Huerta provided a false name belonging to a real person, a false birthdate, and a false birthplace in Puerto Rico. Huerta presented a birth certificate issued for the ID theft victim and a California driver’s license bearing Huerta’s photograph and the victim’s name and birthdate.
On January 9, 2014, law enforcement agents executed search warrants at Huerta’s residence in Vallejo that he had used as his for his 2012 passport application and his California driver’s license.
During the search of the residence, agents found baggies containing methamphetamine, cocaine, and marijuana; two digital scales and substances that may be used in the manufacture of controlled substances; a respirator/breathing device, miscellaneous supplies such as plastic bags, rubber bands, rubber gloves, sheets of paper, and a notebook consisting of “pay-owe” sheets or ledgers. In Huerta’s bedroom closet, agents found a 9 mm semi‑automatic Sig Sauer Model P226 handgun. Next to the firearm was a Sig Sauer handgun magazine or clip loaded with seven rounds of 9 mm ammunition. There were two children living in the home.
This case is the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and California Department of Motor Vehicles. Assistant United States Attorney Nirav Desai is prosecuting the case.
Huerta remains in custody awaiting sentencing. He is scheduled to be sentenced by Judge Burrell on December 12, 2014. Huerta faces the following possible maximum sentences: for aggravated identity theft — two years and a $250,000 fine; for the methamphetamine-related offense — five to 40 years in prison and a $5 million fine; for the firearms offense — 10 years in prison and a $250,000 fine. The actual sentence, however, will 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.
Philadelphia Man Sentenced to Life in Prison for Deadly Firebombing of Federal Witness's FamilyRead the Press Release
A Philadelphia man was sentenced today to life in prison for his role in the Oct. 9, 2004, retaliatory firebombing that killed six members of a federal witness’s family, including four children.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania and Special Agent in Charge Edward J. Hanko of the FBI’s Philadelphia Division made the announcement. U.S. District Judge R. Barclay Surrick imposed the sentence.
Robert Merritt, 34, was convicted following a jury trial on May 13, 2013, of conspiracy to participate in a racketeering enterprise and the murders of the family members of a federal witness, Eugene Coleman.
At the direction of convicted drug kingpin Kaboni Savage, Merritt and his cousin, Lamont Lewis, participated in the firebombing of the Coleman family home in retaliation for Coleman’s testimony against Savage. Evidence introduced at trial showed that Merritt threw a gas can with a lit cloth fuse, and then a second gas can, into the occupied Philadelphia row house in the predawn hours of Oct. 9, 2004. Six people, including four children ranging in age from 15 months to 15 years, were killed in the ensuing fire.
Co-defendants Kaboni Savage and Kadida Savage were also convicted at the May 2013 trial of the firebombing. Kaboni Savage was sentenced to death for 12 counts of murder in aid of racketeering. Kidada Savage was sentenced to life in prison. Lamont Lewis, who pleaded guilty before trial, is awaiting sentencing.
The case was investigated by the FBI, the Internal Revenue Service – Criminal Investigations, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey, Police Department. The United States Bureau of Prisons, the United States Marshals Service, and the Philadelphia / Camden High Intensity Drug Trafficking Area Task Force also assisted in the investigation.
The case is being prosecuted by Trial Attorney Steve Mellin of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys David E. Troyer and John M. Gallagher of the Eastern District of Pennsylvania.
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Pennsylvania Accountant Sentenced for Conspiring with Members of Organized Crime Family in Fraud SchemeRead the Press Release
A Pennsylvania accountant was sentenced today to serve 40 months in prison for conspiring to defraud FirstPlus Financial Group Inc. (FirstPlus), a Texas-based financial services company, which had been targeted for extortionate takeover and looting by a group led by Lucchese organized crime family member Nicodemo S. Scarfo.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman of the District of New Jersey made the announcement.
Howard Drossner, 53, of Ambler, Pennsylvania, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with conspiracy to commit wire fraud. Judge Kugler imposed the sentence today in the District of New Jersey.
According to court documents and evidence introduced at the trial of his coconspirators, Scarfo is a made member of the Lucchese organized crime family. In April 2007, Scarfo, Salvatore Pelullo and others devised a scheme to take over FirstPlus. Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors and replaced those officers with individuals beholden to Scarfo and Pelullo.
Drossner, a certified public accountant (CPA), joined the conspiracy in February 2008 when he helped Scarfo and Scarfo’s then-fiancée secure a $500,000 mortgage to purchase a house for $715,000 in Egg Harbor Township, New Jersey. At the direction of Pelullo, Drossner created false tax returns to help Scarfo’s fiancée qualify for a mortgage. Scarfo used money looted from FirstPlus for the $215,000 down payment on the house. The false tax returns, which exaggerated Scarfo’s fiancée’s income so she could qualify for the mortgage without naming Scarfo, were used to secure the mortgage.
After the First Plus scheme was shut down by federal law enforcement in May 2008, Scarfo was unable to pay the mortgage and the house ultimately went into foreclosure. It was sold by the bank in 2010.
In addition to the prison term, Judge Kugler sentenced Drossner to three years of supervised release and fined him $125,000. Under the terms of his plea agreement, Drossner was required to notify the Pennsylvania State Board of Accountancy of his guilty plea and consent to the voluntary suspension of his CPA license.
Four other members of the conspiracy – Scarfo, a member of the Lucchese La Cosa Nostra (LCN) family; Pelullo, an associate of the Lucchese and Philadelphia LCN families; William Maxwell, a Texas lawyer; and John Maxwell, who acted as the nominal CEO of FirstPlus after the takeover – were convicted of several offenses, including racketeering conspiracy, in July 2014 after a six-month trial. They are all awaiting sentencing. The indictment also named Nicodemo S. Scarfo’s father, Nicodemo D. Scarfo – the former boss of the Philadelphia LCN family – and Vittorio Amuso – the boss of the Lucchese family – as unindicted co-conspirators. Both are serving lengthy prison sentences.
Three other defendants charged in the indictment – John Parisi, manager of Scarfo’s shell company; Lisa Murray-Scarfo, Scarfo’s then-fiancée and a participant in the mortgage fraud conspiracy; and Cory Leshner, a participant in the looting of FirstPlus – have pleaded guilty and are awaiting sentencing. Todd Stark, also charged in the indictment, previously pleaded guilty and was sentenced for providing ammunition to Scarfo and Pelullo despite knowing that they were convicted felons.
This case was investigated by the FBI’s Newark and Philadelphia Field Offices, the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations for the New York Region and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey.
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Pennsylvania Accountant Sentenced to 40 Months in Prison for Conspiring with Members of Organized Crime Family in Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Pennsylvania accountant was sentenced today to 40 months in prison for conspiring to defraud FirstPlus Financial Group Inc. (FirstPlus), a Texas-based financial services company, which had been targeted for extortionate takeover and looting by a group led by Lucchese organized crime family member Nicodemo S. Scarfo.
New Jersey U.S. Attorney Paul J. Fishman and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division made the announcement.
Howard Drossner, 53, of Ambler, Pennsylvania, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with conspiracy to commit wire fraud. Judge Kugler imposed the sentence today in Camden federal court.
According to court documents and evidence introduced at a related trial:
Scarfo is a made member of the Lucchese La Cosa Nostra (LCN) organized crime family. In April 2007, Scarfo, Salvatore Pelullo, and others devised a scheme to take over FirstPlus. Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors and replaced those officers with individuals beholden to Scarfo and Pelullo.
Drossner, a certified public accountant, joined the conspiracy in February 2008 when he helped Scarfo and Scarfo’s then-fiancée secure a $500,000 mortgage to purchase a house for $715,000 in Egg Harbor Township, New Jersey. At the direction of Pelullo, Drossner created false tax returns to help Scarfo’s fiancée qualify for a mortgage. Scarfo used money looted from FirstPlus for the $215,000 down payment on the house. The false tax returns, which exaggerated Scarfo’s fiancée’s income so that she could qualify for the mortgage without naming Scarfo, were used to secure the mortgage.
After the First Plus scheme was shut down by federal law enforcement in May 2008, Scarfo was unable to pay the mortgage and the house ultimately went into foreclosure. It was sold by the bank in 2010.
In addition to the prison term, Judge Kugler sentenced Drossner to three years of supervised release and fined him $125,000. Under the terms of his plea agreement, Drossner was required to notify the Pennsylvania State Board of Accountancy of his guilty plea and consent to the voluntary suspension of his CPA license.
Four other members of the conspiracy – Scarfo; Pelullo, an associate of the Lucchese and Philadelphia LCN families; William Maxwell, a Texas lawyer; and John Maxwell, who acted as the nominal CEO of FirstPlus after the takeover – were convicted of several offenses, including racketeering conspiracy, in July 2014 after a six-month trial. The indictment in which they were charged also named Nicodemo S. Scarfo’s father, Nicodemo D. Scarfo – the former boss of the Philadelphia LCN family – and Vittorio Amuso – the boss of the Lucchese family – as unindicted co-conspirators. Both are serving lengthy prison sentences.
Three other defendants charged in the indictment – John Parisi, manager of Scarfo’s shell company; Lisa Murray-Scarfo, Scarfo’s then-fiancée and a participant in the mortgage fraud conspiracy; and Cory Leshner, a participant in the looting of FirstPlus – have pleaded guilty and are awaiting sentencing. Todd Stark, also charged in the indictment, previously pleaded guilty and was sentenced for providing ammunition to Scarfo and Pelullo despite knowing that they were convicted felons.
U.S. Attorney Fishman and Assistant Attorney General Caldwell credited special agents of the FBI under the direction of Special Agent in Charge Aaron T. Ford in Newark; special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia, New York Region; and the ATF, under the direction of Special Agent in Charge George P. Belsky in Newark, for the investigation leading to today’s sentencing. They also thanked the FBI under the direction of Special Agent in Charge Edward J. Hanko in Philadelphia for its assistance.
The government is represented by Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the New Jersey U.S. Attorney’s Office’s Camden Office and Trial Attorney Adam L. Small of the Organized Crime and Gang Section in the Department of Justice’s Criminal Division in Washington.
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Defense counsel: Christopher D. Adams Esq., Roseland, N.J.Peanut Corporation of America Former Officials and Broker Convicted on Criminal Charges Related to Salmonella-Tainted Peanut ProductsRead the Press Release
A federal jury returned guilty verdicts against two former officials of and one broker for the Peanut Corporation of America (PCA), the Department of Justice announced today.
Stewart Parnell, of Lynchburg, Virginia, and Michael Parnell, of Midlothian, Virginia, were convicted of conspiracy, mail and wire fraud, and the introduction of misbranded food into interstate commerce. Steward Parnell was also convicted of the introduction of adulterated food. Stewart Parnell and Mary Wilkerson, of Edison, Georgia, were also convicted of obstruction of justice. The convictions all arise from the unlawful sale of salmonella-tainted peanuts and peanut products.
Expert evidence at trial showed that tainted food led to an outbreak in 2009 with more than 700 reported cases of salmonella poisoning. According to the Centers for Disease Control and Prevention (CDC), based on epidemiological projections, that number translates to more than 22,000 total cases.
The verdicts followed a seven-week trial in the Middle District of Georgia during which prosecutors presented the testimony of 45 witnesses and introduced 1,001 documents into evidence. Among those who testified were Samuel Lightsey and Daniel Kilgore, both of Blakely, Georgia, both former operations managers for PCA and both of whom earlier pleaded guilty to several crimes for their roles in the sale of the salmonella-tainted food by PCA.
“As this verdict confirms, the salmonella outbreak that caused nationwide panic five years ago was a direct result of the actions of these individuals,” said Attorney General Eric Holder. “This verdict demonstrates that the Department of Justice will never waver in our pursuit of those who break our laws and compromise the safety of America’s food supply for financial gain. All Americans must be able to rely on the safety of the food they purchase. And any individual or company who puts the health of consumers at risk by criminally selling tainted food will be caught, prosecuted, and held accountable to the fullest extent of the law.”
The government presented evidence at trial to establish that Stewart Parnell and Michael Parnell – with Lightsey and Kilgore – participated in several schemes by which they defrauded PCA customers and jeopardized the quality and purity of their peanut products. Specifically, the government presented evidence that defendants misled customers about the presence of salmonella in their products. For example, as the evidence demonstrated, the Parnells, Lightsey and Kilgore fabricated certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including test results concerning the presence or absence of pathogens in food. According to the evidence, on several occasions, the Parnells, Lightsey and Kilgore participated in a scheme to fabricate COAs that stated that the food at issue was free of pathogens when in fact there had been no testing of the food or tests had revealed the presence of pathogens.
The government also presented evidence that when FDA officials visited the plant to investigate the outbreak, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to questions posed by those officials.
“We are gratified by the jury’s verdict,” said Joyce R. Branda, Acting Assistant Attorney General for the Civil Division. “The jury delivered a powerful message that there will be serious consequences for criminals who put profit above the welfare of their customers and knowingly sell contaminated food. The Department of Justice will not hesitate to pursue any person whose criminal conduct risks the health of Americans and the safety of the nation’s food supply.”
“In this great country, we take for granted the safety of the food we feed our families,” said U.S. Attorney Michael J. Moore of the Middle District of Georgia. “We expect, and rightfully so, for food suppliers to follow the rules and regulations, and to never sacrifice public safety for profits. In this case, these defendants were willing to put tainted food onto the shelves of stores across the country. After this trial, it should be clear that individual accountability, not just corporate responsibility, for criminal conduct that puts public safety in jeopardy is now the norm in the eyes of the Department of Justice. And while the evidence over the last few weeks has focused on the criminal acts of these defendants, let’s not forget that there were real victims in this case who became ill and suffered greatly because making money, at least to the defendants, was more important than making sure that the peanut products they put into the marketplace were safe.”
Attorney General Holder, Acting Assistant Attorney General Branda and U.S. Attorney Moore thanked the jury for its service, and, especially, for its careful consideration of the evidence.
In all, the jury convicted Stewart Parnell of multiple counts of conspiracy, mail fraud, wire fraud, the sale of misbranded food, the sale of adulterated food, and obstruction; Michael Parnell of multiple counts of conspiracy, mail fraud, wire fraud, and the sale of misbranded food; and Mary Wilkerson of one count of obstruction. The judge has not yet set a date for sentencing.
The case was prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Consumer Protection Branch of the Civil Division and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia.
Peanut Corporation of America Former Officials and Broker Convicted on Criminal Charges Related to Salmonella-Tainted Peanut ProductsRead the Press Release
WASHINGTON - A federal jury returned guilty verdicts against two former officials of and one broker for the Peanut Corporation of America (PCA), the Department of Justice announced today.Stewart Parnell, of Lynchburg, Virginia, and Michael Parnell, of Midlothian, Virginia, were convicted of conspiracy, mail and wire fraud, and the introduction of misbranded food into interstate commerce. Steward Parnell was also convicted of the introduction of adulterated food. Stewart Parnell and Mary Wilkerson, of Edison, Georgia, were also convicted of obstruction of justice. The convictions all arise from the unlawful sale of salmonella-tainted peanuts and peanut products.
Expert evidence at trial showed that tainted food led to an outbreak in 2009 with more than 700 reported cases of salmonella poisoning. According to the Centers for Disease Control and Prevention (CDC), based on epidemiological projections, that number translates to more than 22,000 total cases.
The verdicts followed a seven-week trial in the Middle District of Georgia during which prosecutors presented the testimony of 45 witnesses and introduced 1,001 documents into evidence. Among those who testified were Samuel Lightsey and Daniel Kilgore, both of Blakely, Georgia, both former operations managers for PCA and both of whom earlier pleaded guilty to several crimes for their roles in the sale of the salmonella-tainted food by PCA.
“As this verdict confirms, the salmonella outbreak that caused nationwide panic five years ago was a direct result of the actions of these individuals. This verdict demonstrates that the Department of Justice will never waver in our pursuit of those who break our laws and compromise the safety of America’s food supply for financial gain,” said Attorney General Eric Holder. “All Americans must be able to rely on the safety of the food they purchase. And any individual or company who puts the health of consumers at risk by criminally selling tainted food will be caught, prosecuted, and held accountable to the fullest extent of the law.”
The government presented evidence at trial to establish that Stewart Parnell and Michael Parnell – with Lightsey and Kilgore – participated in several schemes by which they defrauded PCA customers and jeopardized the quality and purity of their peanut products. Specifically, the government presented evidence that defendants misled customers about the presence of salmonella in their products. For example, as the evidence demonstrated, the Parnells, Lightsey and Kilgore fabricated certificates of analysis (COAs) accompanying various shipments of peanut products. COAs are documents that summarize laboratory results, including test results concerning the presence or absence of pathogens in food. According to the evidence, on several occasions, the Parnells, Lightsey and Kilgore participated in a scheme to fabricate COAs that stated that the food at issue was free of pathogens when in fact there had been no testing of the food or tests had revealed the presence of pathogens.
The government also presented evidence that when FDA officials visited the plant to investigate the outbreak, Stewart Parnell, Lightsey and Wilkerson gave untrue or misleading answers to questions posed by those officials.
“We are gratified by the jury’s verdict,” said Joyce R. Branda, Acting Assistant Attorney General for the Civil Division. “The jury delivered a powerful message that there will be serious consequences for criminals who put profit above the welfare of their customers and knowingly sell contaminated food. The Department of Justice will not hesitate to pursue any person whose criminal conduct risks the health of Americans and the safety of the nation’s food supply.”
“In this great country, we take for granted the safety of the food we feed our families,” said U.S. Attorney Michael J. Moore of the Middle District of Georgia. “We expect, and rightfully so, for food suppliers to follow the rules and regulations, and to never sacrifice public safety for profits. In this case, these defendants were willing to put tainted food onto the shelves of stores across the country. After this trial, it should be clear that individual accountability, not just corporate responsibility, for criminal conduct that puts public safety in jeopardy is now the norm in the eyes of the Department of Justice. And while the evidence over the last few weeks has focused on the criminal acts of these defendants, let’s not forget that there were real victims in this case who became ill and suffered greatly because making money, at least to the defendants, was more important than making sure that the peanut products they put into the marketplace were safe.”
Attorney General Holder, Acting Assistant Attorney General Branda and U.S. Attorney Moore thanked the jury for its service, and, especially, for its careful consideration of the evidence.
In all, the jury convicted Stewart Parnell of multiple counts of conspiracy, mail fraud, wire fraud, the sale of misbranded food, the sale of adulterated food, and obstruction; Michael Parnell of multiple counts of conspiracy, mail fraud, wire fraud, and the sale of misbranded food; and Mary Wilkerson of one count of obstruction. The judge has not yet set a date for sentencing.
The case was prosecuted by Trial Attorneys Patrick Hearn and Mary M. Englehart of the Consumer Protection Branch of the Civil Division and Assistant U.S. Attorney Alan Dasher of the Middle District of Georgia.
Osceola County Deputy Sheriff Among Five Indicted for Conspiracy to Commit Wire Fraud, Theft of Government Funds, and Aggravated Identity TheftRead the Press Release
Follow @NDFLNewsTALLAHASSEE, FLORIDA – Titus Lee Dixon, 48, Perrissa Dixon, 40, Orman Curtis Witherspoon, 40, Stefondra Monroe, 23, all residing in Kissimmee, Florida, and Katrina Pratt, 39, of Tallahassee, have been charged by a federal grand jury with conspiracy to commit wire fraud, theft of government funds, and aggravated identity theft in a scheme to obtain fraudulent federal income tax refunds. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
The ten-count indictment alleges that for tax years 2010 and 2011, the five defendants were part of a scheme that illegally used the personal identifying information of numerous victims, without their permission, to prepare and electronically file over one hundred fraudulent federal income tax returns. Among the victims are individuals whose names had been searched by current Osceola County Deputy Sheriff Titus Dixon, through Florida law enforcement databases. Other victims include work-study students at the Florida Agricultural and Mechanical University (FAMU), where Katrina Pratt works as an administrative assistant in human resources. The indictment charges that Perrissa Dixon used the identities of 150 individuals in the scheme to defraud, and Pratt used the identities of 40 FAMU students.
As alleged in the indictment, the defendants caused the Internal Revenue Service to issue tax refunds in the names of the victims, either electronically onto pre-paid debit cards or in the form of U.S. Treasury checks. The fraudulently obtained funds were then deposited into bank accounts controlled by the defendants. As a result of this scheme, the Internal Revenue Service issued approximately $500,000.00 in fraudulently claimed income tax refunds.
The indictment results from a joint investigation by the Internal Revenue Service—Criminal Investigation, the United States Secret Service, the Osceola County Sheriff’s Office, and the FAMU Police Department. The case is being prosecuted by Assistant U.S. Attorney James Ustynoski.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.Oneco Man Found Guilty of Attempted Child EnticementRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury found Erasmo Aguinaga (36, Oneco) guilty today of attempted child enticement. He faces a maximum penalty of life imprisonment. A sentencing hearing has been scheduled for December 12, 2014, at 2:30 p.m. Aguinaga was indicted on April 25, 2013.
According to testimony and evidence presented at trial, on March 23, 2013, Aguinaga used a cellular telephone to induce what he believed was a 14-year-old girl to engage in illegal sexual acts. The individual whom he believed to be a minor was actually an undercover law enforcement officer. Aguinaga drove to what he believed was the minor’s home and was arrested.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the St. Petersburg Police Department, and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Nurse-CEO Sentenced to Federal Prison for Health Care Fraud and Money LaunderingRead the Press Release
DES MOINES, IA – On September 15, 2014, Angela Shae Ellison, age 47, of Centerville, Iowa, the former owner and CEO of Cornerstone Counseling Center, was sentenced by U.S. District Court Judge Stephanie M. Rose on charges of health care fraud and money laundering, announced U.S. Attorney Nicholas A. Klinefeldt. Ellison was ordered to serve one year and one day in prison, and was ordered to pay $724,359.26 in restitution, and pay $200 to the Crime Victim Fund.
Ellison, who previously worked as a nurse, pled guilty to orchestrating a fraudulent billing scheme in which she directed employees of Cornerstone Counseling Center to bill Medicaid, Wellmark, Aetna, and United Health over 6,000 times using the names and national provider identification number of various doctors who did not perform the services for which the bills were submitted. Many of the fraudulent bills involved the name and identification number of a doctor who never performed any work for the Center. Over $1 million in bogus bills were submitted, and the various insurance entities paid out more than $700,000 in claims.
The case was investigated by the U.S. Department of Health and Human Services-Office of Inspector General, the Iowa Medicaid Fraud Control Unit, the Internal Revenue Service Criminal Investigation, and the Iowa Insurance Fraud Bureau. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
North Miami Beach Resident Convicted in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), and J. Scott Dennis, Chief, North Miami Beach Police Department, announce that Paul Borgella, 35, of North Miami Beach, was convicted by a federal jury of three counts of theft of government funds, in violation of Title 18, United States Code, Section 641, for his participation in a stolen identity tax refund fraud scheme. Sentencing is scheduled for December 3, 2014, before U.S. District Judge Marcia Cooke. Paul Borgella faces a maximum term of 10 years in prison.
Co-defendant Carl Borgella, 32, of North Miami Beach, previously pled guilty to one count of conspiracy to steal tax refunds, in violation of Title 18, United States Code, Section 371, and one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2. Carl Borgella was sentenced on June 11, 2014 to 36 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $288,044.21.
According to records filed in this case and statements made in court, in 2011, Carl Borgella and Paul Borgella each opened a business bank account for “TRCJ Asset Services,” a company incorporated in Florida listing Carl Borgella as the president and Paul Borgella as the vice president. From January 2011 to September 2011, the defendants used the bank accounts to receive over 300 fraudulently obtained United States Department of Treasury tax refunds via Electronic Funds Transfers. All of the tax refunds deposited into the bank accounts were issued as a result of fraudulent tax returns that contained materially false information and were filed using stolen personal identifying information. During the course of the conspiracy, the bank accounts received fraudulently obtained tax refunds totaling over $400,000. The defendants would then withdraw money from the bank accounts and use the money for their personal expenses by making ATM withdrawals, debit card payments, and issuing checks.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, and the North Miami Beach Police Department. The case is being prosecuted by Assistant U.S. Attorneys Vanessa Snyder, Cristina M. Moreno and Amanda Perwin.
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.
Nine Individuals Indicted in Two Fraudulent Tax Refund ConspiraciesRead the Press Release
Today, Deputy Assistant Attorney General Ronald A. Cimino for the Justice Department’s Tax Division, U.S. Attorney S. Amanda Marshall for the District of Oregon and Special Agent in Charge Teri L. Alexander of Internal Revenue Service (IRS)-Criminal Investigation announced the unsealing of two indictments against nine individuals involved in two tax fraud schemes, each of which claimed more than $1 million in fraudulent tax refunds.
Four Portland Residents Indicted in a $1 Million Tax Refund Fraud Conspiracy
Jheraun Dunlap, Ernest Bagsby, Jermaine Moore and Brandi McCall were indicted by a federal grand jury sitting in Portland for a federal tax refund fraud scheme.
According to the 45-count indictment, Dunlap allegedly filed at least 208 false individual income tax returns with the IRS, claiming more than $1 million in fraudulent refunds. The indictment alleges that Dunlap filed false tax returns using the names and social security numbers of other individuals, which he obtained directly and received from the other defendants. According to the indictment, Dunlap used numerous addresses obtained by Bagsby, Moore and McCall to receive stored-value debit cards loaded with fraudulent income tax refunds.
Dunlap, Bagsby, Moore and McCall were all indicted for conspiracy to defraud the government. In addition, Dunlap was indicted on 23 counts of filing false claims for tax refunds, five counts of wire fraud and five counts of aggravated identity theft; Bagsby was indicted on one count of theft of government funds and one count of aggravated identity theft; Moore was indicted on two counts of theft of government funds and two counts of aggravated identity theft; and McCall was indicted on three counts of theft of government funds and two counts of aggravated identity theft.
If convicted, Dunlap faces a statutory maximum sentence of 10 years in prison for the conspiracy to defraud the government, five years in prison for each false claims count, 20 years in prison for each wire fraud count and a statutory mandatory two year sentence in prison for the aggravated identity theft counts. If convicted, he could also be subject to fines, mandatory restitution and a money judgment. If convicted, Bagsby, Moore and McCall each face a statutory maximum sentence of 10 years in prison for conspiracy to defraud the government, 10 years in prison for each theft of government funds count and a statutory mandatory two year sentence in prison for the aggravated identity theft counts.
This case was investigated by the IRS-Criminal Investigation’s Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Tax Division are prosecuting the case.
Five Individuals Indicted in a $1 Million Tax Refund Fraud Conspiracy
Lori Nicholson, Jasmine Mason, Tataneisha White, Shawntina Ware and Brandon Leath were indicted by a federal grand jury sitting in Portland for a federal tax refund fraud scheme.
According to the 110-count indictment, Nicholson, Mason, White, Ware and Leath filed at least 227 false federal income tax returns with the IRS, claiming more than$1 million in fraudulent tax refunds. The five defendants are alleged to have filed false tax returns using the names and social security numbers of other individuals obtained directly and through other defendants. According to the indictment, the defendants used addresses that they could access or control to receive stored-value debit cards loaded with fraudulent income tax refunds.
Nicholson, Mason, White, Ware and Leath were all indicted for conspiracy to defraud the government. In addition, Nicholson was indicted on 16 counts of filing false claims for tax refunds, three counts of wire fraud and 13 counts of theft of government funds; Mason was indicted on 18 counts of filing false claims for tax refunds, three counts of wire fraud and eight counts of theft of government funds; White was indicted on 12 counts of filing false claims for tax refunds, three counts of wire fraud and four counts of theft of government funds; Ware was indicted on eight counts of filing false claims for tax refunds, three counts of wire fraud and five counts of theft of government funds; Leath was indicted on six counts of filing false claims for tax refunds, three counts of wire fraud and four counts of theft of government funds.
If convicted, the defendants face a statutory maximum sentence of 20 years in prison for each wire fraud count, 10 years in prison for each conspiracy to defraud the government count, 10 years in prison for each theft of government funds count and five years in prison for each false claims count. If convicted, the defendants could also be subject to fines, mandatory restitution, and a money judgment.
This case was investigated by the IRS-Criminal Investigation’s Stolen Identity Refund Fraud Task Force. Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division are prosecuting the case.
# # #
For both cases, an indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Nine Individuals Indicted in Two Fraudulent Tax Refund ConspiraciesRead the Press Release
WASHINGTON – Today, Deputy Assistant Attorney General Ronald A. Cimino for the Justice Department’s Tax Division, U.S. Attorney S. Amanda Marshall for the District of Oregon and Special Agent in Charge Teri L. Alexander of Internal Revenue Service (IRS)-Criminal Investigation announced the unsealing of two indictments against nine individuals involved in two tax fraud schemes, each of which claimed more than $1 million in fraudulent tax refunds.
Four Portland Residents Indicted in a $1 Million Tax Refund Fraud Conspiracy
Jheraun Dunlap, Ernest Bagsby, Jermaine Moore and Brandi McCall were indicted by a federal grand jury sitting in Portland for a federal tax refund fraud scheme.
According to the 45-count indictment, Dunlap allegedly filed at least 208 false individual income tax returns with the IRS, claiming more than $1 million in fraudulent refunds. The indictment alleges that Dunlap filed false tax returns using the names and social security numbers of other individuals, which he obtained directly and received from the other defendants. According to the indictment, Dunlap used numerous addresses obtained by Bagsby, Moore and McCall to receive stored-value debit cards loaded with fraudulent income tax refunds.
Dunlap, Bagsby, Moore and McCall were all indicted for conspiracy to defraud the government. In addition, Dunlap was indicted on 23 counts of filing false claims for tax refunds, five counts of wire fraud and five counts of aggravated identity theft; Bagsby was indicted on one count of theft of government funds and one count of aggravated identity theft; Moore was indicted on two counts of theft of government funds and two counts of aggravated identity theft; and McCall was indicted on three counts of theft of government funds and two counts of aggravated identity theft.
If convicted, Dunlap faces a statutory maximum sentence of 10 years in prison for the conspiracy to defraud the government, five years in prison for each false claims count, 20 years in prison for each wire fraud count and a statutory mandatory two year sentence in prison for the aggravated identity theft counts. If convicted, he could also be subject to fines, mandatory restitution and a money judgment. If convicted, Bagsby, Moore and McCall each face a statutory maximum sentence of 10 years in prison for conspiracy to defraud the government, 10 years in prison for each theft of government funds count and a statutory mandatory two year sentence in prison for the aggravated identity theft counts.
This case was investigated by the IRS-Criminal Investigation’s Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Lori A. Hendrickson of the Tax Division are prosecuting the case.
Five Individuals Indicted in a $1 Million Tax Refund Fraud Conspiracy
Lori Nicholson, Jasmine Mason, Tataneisha White, Shawntina Ware and Brandon Leath were indicted by a federal grand jury sitting in Portland for a federal tax refund fraud scheme.
According to the 110-count indictment, Nicholson, Mason, White, Ware and Leath filed at least 227 false federal income tax returns with the IRS, claiming more than$1 million in fraudulent tax refunds. The five defendants are alleged to have filed false tax returns using the names and social security numbers of other individuals obtained directly and through other defendants. According to the indictment, the defendants used addresses that they could access or control to receive stored-value debit cards loaded with fraudulent income tax refunds.
Nicholson, Mason, White, Ware and Leath were all indicted for conspiracy to defraud the government. In addition, Nicholson was indicted on 16 counts of filing false claims for tax refunds, three counts of wire fraud and 13 counts of theft of government funds; Mason was indicted on 18 counts of filing false claims for tax refunds, three counts of wire fraud and eight counts of theft of government funds; White was indicted on 12 counts of filing false claims for tax refunds, three counts of wire fraud and four counts of theft of government funds; Ware was indicted on eight counts of filing false claims for tax refunds, three counts of wire fraud and five counts of theft of government funds; Leath was indicted on six counts of filing false claims for tax refunds, three counts of wire fraud and four counts of theft of government funds.
If convicted, the defendants face a statutory maximum sentence of 20 years in prison for each wire fraud count, 10 years in prison for each conspiracy to defraud the government count, 10 years in prison for each theft of government funds count and five years in prison for each false claims count. If convicted, the defendants could also be subject to fines, mandatory restitution, and a money judgment.
This case was investigated by the IRS-Criminal Investigation’s Stolen Identity Refund Fraud Task Force. Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division are prosecuting the case.
For both cases, an indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
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New York Man Sentenced to Two Years in Prison for Distributing 'Bath Salts' at Area CollegesRead the Press Release
TRENTON, N.J. - A New York man was sentenced today to 24 months in prison for a scheme to distribute kilogram amounts of a controlled substance commonly known as “bath salts,” U.S. Attorney Paul J. Fishman said today.
Conor Healion, 22, of West Hempstead, New York, previously pleaded guilty before U.S. District Judge Joel A. Pisano to conspiracy to distribute methylone. Judge Pisano imposed the sentence today in Trenton federal court.
According to documents filed in the case and statements made in court: Healion and Benjamin Caturano, 22, of New Brunswick, New Jersey, were arrested on March 15, 2013. Kyle Jobes, 23, of East Brunswick, New Jersey, Charles Knierim, 24, of Old Bridge, N.J., were arrested on March 14, 2013. All were charged in connection with their respective roles in a conspiracy to distribute methylone in New Jersey and New York. “Bath salts” is the street name for a family of designer drugs that have effects similar to amphetamine and cocaine. Their white and yellow crystals often resemble legal bath salts, like Epsom salts, but are chemically different.
The current investigation involved a package containing approximately two kilograms of methylone that was intercepted by law enforcement. The package originated in the People’s Republic of China and was supposed to be shipped to an address in Old Bridge. Law enforcement removed the methylone and replaced it with sham drugs that resembled bath salts. On March 14, 2013, law enforcement delivered the package and watched over the next two days as Knierim, Jobes, Caturano, and Healion transferred the package among themselves. After their arrests, a number of the defendants admitted that they had distributed multiple kilograms of bath salts over the past year and that some of the drugs were sold at local college campuses, including Rutgers University and Monmouth University. As part of the investigation, agents of Immigration and Customs Enforcement-Homeland Security Investigations seized more than $90,000 in cash and two luxury automobiles obtained with proceeds from the drug conspiracy.
Healion was the first to be sentenced before Judge Pisano, who also sentenced him to three years of supervised release. Caturano, Jobes and Knierim will each be sentenced by Judge Pisano on Sept. 22, 2014, Oct. 9, 2014, and Oct. 15, 2014, respectively.
U.S. Attorney Fishman credited special agents of the ICE-HSI, under the direction of Special Agent in Charge Andrew M. McLees; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Maria L. Kelokates; and U.S. Customs and Border Protection, under the direction of Robert E. Perez, Director of CBP's New York Field Operations, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney’s Health Care & Government Fraud Unit in Newark, N.J.
14-334Defense counsel: Michael Chazen Esq., Freehold, N.J.
Neosho Man Sentenced for Embezzling $4.9 Million from his EmployerRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Neosho, Mo., man was sentenced in federal court today for stealing more than $4.9 million from his employer.
David VanWinkle, 61, of Neosho, was sentenced by U.S. District Judge Gary A. Fenner to five years and 10 months in federal prison without parole. The court also ordered VanWinkle to forfeit to the government $4,911,621, a 2013 Holland tractor, a 2007 Hummer H3, a 2012 John Deere no-till seed drill, and $28,086 that was seized from various bank accounts.
VanWinkle was the comptroller for Frontier Leasing Incorporated (FLI) in Joplin, Mo., where he had worked for 22 years and had a close, personal relationship with the owner. On Feb. 28, 2014, VanWinkle pleaded guilty to wire fraud, money laundering and failure to pay taxes. VanWinkle admitted that he stole $4,911,621 from FLI between June 2008 and December 2013, which he spent on personal expenses and gambling.
According to court documents, VanWinkle’s embezzlement caused severe financial distress for the company, its owners and its employees. During the more than five years that he was embezzling, FLI struggled financially. FLI, between its employees and contractors, provided a living for over 100 individuals and their families in the Joplin area. While VanWinkle was stealing millions, FLI and its employees were voluntarily taking pay cuts to ensure that this business would not close its doors. As the comptroller for FLI, the government’s sentencing memorandum states, VanWinkle would have been acutely aware of the ramifications of his greed and its direct impact on FLI’s employees and their families.
According to court documents, VanWinkle’s fraud was detected after the owners of FLI were contacted due to the company’s failure to pay employee taxes because VanWinkle had stolen the money that was intended for that purpose. VanWinkle was responsible for collecting payroll taxes for FLI and paying over those payroll taxes to the IRS. VanWinkle withheld those taxes but failed to turn them over to the IRS. VanWinkle admitted that he collected, but failed to pay over, a total of $435,896 in federal tax, Social Security and FICA withheld from FLI employees’ paychecks.
Federal agents then began investigating unusual deposits VanWinkle made into his business accounts for two businesses, VanWinkle Accounting and VanWinkle Farms.
VanWinkle, acting as the comptroller for FLI, received payments from FLI’s customers in the form of checks. VanWinkle deposited some of those checks into FLI’s legitimate business accounts, but deposited other checks into another, secret checking account under the name of FLI that VanWinkle had opened at another bank. VanWinkle was the sole person on this secret account; no one else was aware that FLI had the account. VanWinkle was not authorized to open an account or deposit any of FLI’s customer payment checks into the account.
VanWinkle admitted that he withdrew money from the secret bank account to deposit into his business accounts.
VanWinkle failed to report the embezzled funds from FLI on his personal income tax returns he filed with the Internal Revenue Service for the years 2008, 2009 and 2010. VanWinkle did not file income tax returns for the years 2011 and 2012, and therefore did not report the embezzled funds during these years, either.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.
Mortgage Broker Admits Trading on Inside Information Stolen from Prominent New York Law FirmRead the Press Release
TRENTON, N.J. - The middleman in a five-year insider trading scheme admitted today to receiving numerous trading tips from a law firm source and passing the tips on to his broker-dealer to trade, yielding net profits of more than $5.6 million, U.S. Attorney Paul J. Fishman announced.
Frank Tamayo, 41, of Brooklyn, New York, surrendered this morning to the FBI and pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities and tender offer fraud, one count of securities fraud, and one count of tender offer fraud.
According to documents filed in this case and statements made in court: Tamayo, a mortgage broker, admitted that from 2009 to 2013, he obtained material nonpublic information from his friend and former law school classmate, Steven Metro, 40, of Katonah, New York. Metro was then the managing clerk of the New York office of Simpson Thacher & Bartlett LLP, a law firm specializing in mergers and acquisitions. The inside information divulged by Metro to Tamayo concerned mergers, acquisitions, or tender offers in which the firm represented a party or financial advisor. As the firm’s managing clerk, Metro did not personally work on most these transactions. Instead, Metro stole the information by scouring the firm’s computer system for client names and the keywords “merger agreement,” “bid letter,” “engagement letter,” and “due diligence.”
After stealing material information, Metro would personally meet Tamayo at bars, coffee shops, or other locations near their Manhattan workplaces. Tamayo admitted that during these meetings, Metro gave him the names and ticker symbols of the companies whose securities should be purchased, the general timing of the planned deals, and information related to how the deals would affect the issuers’ stock price once public. Tamayo would write the security’s ticker symbol on a small piece of paper or napkin and then commit the information to memory.Tamayo would then meet with his broker-trader Vladimir Eydelman, 42, of Colts Neck, New Jersey, who was employed first at Oppenheimer & Co. and later at Morgan Stanley. Tamayo and Eydelman met at locations near Eydelman’s workplace, including the large clock in New York City’s Grand Central Terminal. Tamayo admitted that during these meetings, he would show Eydelman the paper or napkin with the ticker symbol of the company whose securities should be purchased. After Eydelman memorized the ticker symbol, Tamayo put the paper or napkin into his mouth and chewed it until it was destroyed.
Using the stolen information, Eydelman purchased securities for himself, family members, friends, and clients, including Tamayo. Eydelman quickly sold the shares and covered any options positions once the relevant deal was publicly announced and the stock price rose.
Tamayo admitted he reinvested the approximately $7,000 in profits that Metro made on the first deal, and updated Metro on the running balance of his profits from the insider trading scheme. As of October 2013, by which time the conspirators had traded ahead of at least 13 planned corporate transactions, Metro’s share of the profits had reached approximately $168,000. Metro sought to “cash out” his share of the accrued profits from the insider trading scheme, pressing Tamayo to “liberate some cash” during a meeting in January 2014. Eydelman paid approximately $7,000 in cash to Tamayo in February 2014, with the expectation that Tamayo would use the cash to compensate Metro for the inside information.By exploiting the material information that Metro stole from the firm, Tamayo, Metro and Eydelman netted more than $5.6 million in illicit profits over the course of the five-year insider trading scheme.
Tamayo faces a maximum potential penalty of five years in prison and a fine of $250,000 on the conspiracy count; and a maximum potential penalty of 20 years in prison and a fine of $5 million on the securities and tender offer fraud counts. Tamayo agreed to pay a forfeiture money judgment of more than $1 million and to forfeit certain property, including the contents of two brokerage accounts and a 2008 Audi Q7 automobile. He is scheduled to be sentenced on Dec. 23, 2014.
Metro and Eydelman have been charged by complaint for their own involvement in the insider trading scheme. The charges and allegations contained in the complaint are merely accusations, and defendants Metro and Eydelman are presumed innocent unless and until proven guilty.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked the U.S. Securities and Exchange Commission’s Market Abuse Unit, under the direction of Daniel Hawke. The SEC today filed a civil complaint against Tamayo. U.S. Attorney Fishman also thanked the Financial Industry Regulatory Authority for their assistance.
The government is represented by Assistant U.S. Attorneys Shirley U. Emehelu of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark, and Joseph R. Gribko of the U.S. Attorney’s Office in Trenton, as well as Unit Chief Marion Percell and Assistant U.S. Attorney Barbara Ward of the Office’s Asset Forfeiture and Money Laundering Unit.
These charges are 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. attorney’s 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 www.stopfraud.gov.14-332
Defense counsel: A. Ross Pearlson Esq. and Matthew E. Beck Esq., West Orange, New Jersey
Insider Trades
APPROX. DATE(S) OF PURCHASES
ANNOUNCEMENT DATE
SECURITY
APPROX. ILLICIT PROFIT
2/17/2009
Sirius XM Radio
$212,814
12/29/2009-1/15/2010
1/18/2010
Brinks Home Security
$773,154
7/8/2010-7/15/2010
7/15/2010
Smithtown Bancorp
$29,010
10/20/2010-10/29/2010
11/1/2010
CNA Surety Corporation
$241,141
4/11/2011-4/12/2011
4/13/2011
Graham Packing Company Inc.
$105,964
1/31/2011-4/19/2011
4/26/2011
SMART Modular Technologies
$1,575,382
4/4/2011-4/21/2011
4/27/2011
Vital Images, Inc.
$39,233
4/29/2011
5/2/2011
International Coal Group, Inc.
$231,276
6/21/2011-8/22/2011
8/23/2011
PharMerica Corp.
$1,517,092
4/16/2012-4/20/2012
5/1/2012
Collective Brands, Inc.
$360,775
5/14/2012-10/1/2012
N/A
“Company A”
N/A
9/20/2012-9/25/2012
9/27/2012
Sealy Corporation
$14,509
1/31/2013-2/15/2013
2/20/2013
Officemax Inc.
$573,332
APPROX. TOTAL ILLICIT PROFITS
$5,673,682
Tamayo, Frank Information
Montour Man Sentenced to Eighteen Months for Bankruptcy FraudRead the Press Release
A man who concealed assets from the bankruptcy court and then lied about his assets under oath before a bankruptcy judge was sentenced today to eighteen months in federal prison.
Jay Freese, from Montour, Iowa, received the prison term after a February 18, 2014 guilty plea to one count of concealing assets in a bankruptcy case.
At the guilty plea hearing, Freese admitted he filed for bankruptcy protection in 2009 in the United States Bankruptcy Court for the Northern District of Iowa. Freese did not disclose his ownership of a Bobcat skid loader or Kubota tractor. When questioned under oath before a federal bankruptcy judge, Freese lied about those assets, claiming he sold them to another person.
Freese was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Freese was sentenced to eighteen months’ imprisonment and fined $5,000. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was investigated and prosecuted as part of the Bankruptcy Fraud Task Force in the Northern District of Iowa.
Freese was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney C.J. Williams and investigated by the Federal Bureau of Investigation and the Office of United States Bankruptcy Trustee.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-cr-14-LRR.
Merrimack College Professor Arrested for Possession of Child PornographyRead the Press Release
Boston – The chairman of Merrimack College’s Civil Engineering Department was arrested today for possession of child pornography.
Gary S. Spring, 61, of Danvers, was charged in a criminal complaint with possession of child pornography. Spring was also the administrator of the college’s residential summer camp for middle and high school aged children.
According to the criminal complaint, in June 2014, Merrimack College in North Andover, Mass. uncovered suspicious activity associated with one of the college’s loaner computers through virus threat detection alerts. An internal investigation determined that the computer had been loaned out to Spring, and that Spring had been logged on during the time the alerts were triggered. Further investigation determined that the computer was used to access child pornography. Search warrants were executed at Spring’s office at Merrimack College and his residence in Danvers. Spring was arrested after it was confirmed that he possessed child pornography.
The charging statute provides a sentence of no greater than 20 years in prison, five years to a lifetime supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; North Andover Police Chief Paul J. Gallagher, and Merrimack College Police Chief Michael DelGreco, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Maryland Woman Sentenced to 6 ½ Years in Prison for Voluntary Manslaughter in Fatal Crash Near Dupont CircleShe Left the Scene After Hitting the VictimRead the Press Release
WASHINGTON - Jorida Davidson, 34, formerly of Chevy Chase, Md., was sentenced today to a 6 ½-year prison term on a charge of voluntary manslaughter stemming from a traffic crash in 2010 that killed a woman near Dupont Circle, U.S. Attorney Ronald C. Machen Jr. announced.
Davidson was found guilty of the charge in July 2014, following a jury trial in the Superior Court of the District of Columbia. She was sentenced by the Honorable Lynn Leibovitz.
In an earlier, separate trial, Davidson was found guilty in June 2011 of negligent homicide, leaving the scene of a collision involving injury, and driving while under the influence of alcohol. That jury at that time was unable to reach a verdict on a charge of voluntary manslaughter, leading to a retrial on that specific charge.
In the earlier case, Davidson was sentenced to three years and nine months in prison, and she now is serving that time. Judge Leibovitz ordered that today’s sentence run concurrently with the prior sentence, meaning today’s proceedings result in 33 additional months of incarceration.
According to the government’s evidence, on Oct. 7, 2010, at about 1:30 a.m., Davidson was operating a 2000 Lexus sport utility vehicle heading northbound on Connecticut Avenue NW, just south of Dupont Circle. She was driving in a lane that would take her into a tunnel that goes under Dupont Circle. At almost the last possible instant, Davidson rapidly changed lanes to avoid going into the tunnel, shifting to a non-tunnel lane on Connecticut Avenue.
At about the same time, the victim, Kiela Ryan, 24, was exiting from a legally parked car on the right side of the street. Davidson hit Ms. Ryan - making no attempt to brake or sound her horn - and then kept driving. An eyewitness got on a bicycle, pursued Davidson’s vehicle and observed the defendant and made a mental note of her car’s tag number.
Davidson, meanwhile, continued driving to her condominium building in Chevy Chase, Md. Police from Montgomery County, Md., found her in the basement garage there, sitting in her vehicle, at about 2:30 a.m. The right front headlight of the vehicle was damaged. The ignition was off, and Davidson had the keys to the Lexus in her hand. She smelled of alcohol and claimed not to know what had happened.
After she was struck, Ms. Ryan was taken to a hospital, where she later died.
In announcing the sentence, U.S. Attorney Machen commended those who worked on the case from the Metropolitan Police Department (MPD). He also cited the efforts of the Montgomery County, Md. Police and the District of Columbia Office of the Chief Medical Examiner. In addition, he acknowledged the work of those who handled the case in the U.S. Attorney’s Office, including Paralegal Specialist Sandra Lane; Information Technology Specialists Anisha Bhatia and Aneela Bhatia; David Foster and Marcia Rinker, of the Victim/Witness Assistance Unit, and Interns Brian Ganjei and Jacob Hjelmaas. He also expressed appreciation for the assistance provided by Assistant U.S. Attorneys John Mannarino and Lauren Bates of the office’s Appellate Division.
Finally, he praised the work of Assistant U.S. Attorneys Michael Liebman and Edward O’Connell, who investigated and prosecuted the case.
14-210Madeira Man Sentenced to 25 Years for Two Counts of Producing Child PornographyRead the Press Release
CINCINNATI – Timothy Lawrence Andriot, 39, of Madeira, Ohio was sentenced to 25 years imprisonment in U.S. District Court for two counts of production of child pornography. Andriot was also sentenced to lifetime supervised release.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation, Cincinnati Field Office (FBI), the Regional Electronics Computer Investigations (RECI) in Sheriff Jim Neil’s Office, Madeira Police Chief Frank Maupin, and other agencies in the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force announced the sentence handed down by Chief U.S. District Judge Susan Dlott yesterday.
According to court documents, Madeira Police and the Hamilton County Jobs and Family Services were investigating allegations that Andriot had sexually abused two minors in June 2013. Forensic examination by RECI of Andriot’s computers recovered images that Andriot had created of him sexually abusing two minor children.
Andriot was arrested by the FBI on a criminal complaint on November 13, 2013. He has been in custody since his arrest.
While under court supervision, Andriot must register as a sex offender anywhere that he lives, works or goes to school.
"The internet does not cause someone to abuse their children.” Assistant U.S. Attorney Christy Muncy told the court. “Pornography magazines do not cause someone to abuse their children. And, anyone who thinks domestic violence and child abuse are isolated incidents are willfully blind to the harsh realities of both."
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Stewart commended the investigation by Madeira police detectives, FBI Special Agents, and investigators with the Greater Cincinnati ICAC, as well as Assistant U.S. Attorney Christy Muncy, who prosecuted the case.
Agencies participating in the Greater Cincinnati ICAC include the FBI, Homeland Security Investigations (HSI), the U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, Hamilton County Sheriff Jim Neil, and the police departments in Amberley Village, Blue Ash, Cincinnati, and West Chester.Lynnwood Accountant Sentenced to Prison for Tax Evasion and Wire FraudRead the Press Release
A long-time Lynnwood accounting and tax professional was sentenced today in U.S. District Court in Seattle to 41 months in prison for wire fraud and tax evasion, announced U.S. Attorney Jenny A. Durkan. BRUCE BERGMAN, 59, of Kirkland, Washington, victimized relatives who believed he was making their tax payments from money they sent to his trust account. Instead, between 2002 and 2011, BERGMAN kept their money and never paid the taxes due, leaving the couple with a tax bill of more than one million dollars. At sentencing U.S. District Judge Richard A. Jones said it was a “devastating crime… a wrecking ball in the lives of so many people who were affected.”
According to records filed in the case, in 2000 BERGMAN started his own accounting firm, the Bergman Group. For the previous nine years BERGMAN had been doing the taxes of a close family member and her husband. In 2002 he led the couple to believe that he was still completing their taxes and making payments from the funds they sent to him. In fact he was keeping their money and never filing their tax returns or their payments. In order to keep the scheme going, BERGMAN filled out various documents including change of address forms so that no notices from the IRS about failure to pay taxes would reach the couple. The scheme was discovered when the relatives consulted a different accountant who discovered no taxes had been paid on behalf of the couple.
“It is bad enough that Bruce Bergman stole from the IRS, but it is unconscionable that he would steal from his own family,” said Special Agent in Charge Teri Alexander of IRS Criminal Investigation. “The sentence today highlights the resolve of the Department of Justice and the IRS to protect the integrity of the tax system and holds Bergman accountable for his duties as a professional accountant.”
In their sentencing recommendation prosecutors noted that BERGMAN needs drug treatment, as some of the money he stole from his relatives went to support a drug habit that cost him as much as $400 a day.
The case was investigated by the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant United States Attorney Matthew Diggs.
Lincoln Man Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
On September 19, 2014, an Indictment was unsealed charging William Nathan Chandler, age 38 of Lincoln, with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture or substance containing methamphetamine between about January 1, 2012, and April 4, 2014. The charge carries a possible penalty of not less than 10 years, nor more than life imprisonment, a fine of up to $10,000,000, and a term of supervised release following any prison term of at least five years, and a $100 special assessment.
Chandler’s first court appearance was on September 19, 2014. The matter was scheduled for trial beginning on November 17, 2014, and Chandler was ordered temporarily detained without bond. Chandler’s next scheduled court appearance is a detention hearing on September 24, 2014.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Leader of Medicare Fraud Scheme That Submitted over $7 Million in Bogus Bills for Unnecessary Equipment Convicted in Federal CourtRead the Press Release
LOS ANGELES – A Hawthorne woman who was responsible for more than $7 million in fraudulent Medicare billing for durable medical equipment – mostly power wheelchairs – was found guilty today of 16 federal charges stemming from the health care fraud scheme.
Adeline Ekwebelem, 51, was found guilty following a seven-day trial before United States District Judge Michael W. Fitzgerald.
Ekwebelem was convicted of conspiracy to commit health care fraud, 12 counts of health care fraud and three counts of paying illegal kickbacks for health care referrals. As a result of the 16 guilty verdicts, Ekwebelem will face a statutory maximum sentence of 145 years when she is sentenced by Judge Fitzgerald on December 15.
Ekwebelem becomes the fifth person convicted in relation to the scheme run out of her Gardena-based durable medical equipment (DME) supply company, Adelco Medical Distributors, Inc.
The evidence presented during the federal court trial showed that Adelco billed Medicare for medically unnecessary DME, primarily power wheelchairs, for beneficiaries who were often recruited off the street. Ekwebelem paid illegal kickbacks to individuals known as marketers to recruit those beneficiaries. Ekwebelem also paid kickbacks to a handful of complicit doctors in exchange for fraudulent prescriptions for DME. Those doctors included Dr. Charles Okoye, who pleaded guilty last month (see: http://www.justice.gov/usao/cac/Pressroom/2014/110.html), and Dr. Uche Chukwudi, who fled after being indicted and is currently a fugitive.
Three of Adelco’s marketers – Romie Tucker, Cindy Santana and Maritza Hernandez – have also pleaded guilty to receiving kickbacks from Ekwebelem.
As a part of this scheme, Ekwebelem submitted more than $7 million in fraudulent claims to Medicare and received nearly $3.5 million for those claims.
The investigation into Ekwebelem and the others involved with Adelco’s scheme to defraud Medicare was conducted by the U.S. Department of Health and Human Services - Office of the Inspector General and the Federal Bureau of Investigation.
Release No. 14-122
Kaboni Savage Soldier Sentenced to LifeRead the Press Release
PHILADELPHIA – Robert Merritt, 34, of Philadelphia, was sentenced today to life in prison for his role in the October 2004 firebombing that killed members of a federal witness’s family on the orders of drug kingpin Kaboni Savage. On May 13, 2013, a federal jury found Merritt guilty of conspiracy to participate in a long-term, large-scale violent drug trafficking enterprise (RICO conspiracy) and the murders of family members of a federal witness, Eugene Coleman. Six people, including four children, were killed in the arson on Oct. 9, 2004.
Merritt participated in the firebombing with his cousin, Lamont Lewis, who pleaded guilty for his role in the murders. They were members of Kaboni Savage’s drug trafficking organization. Savage was also convicted at the May 2013 trial and sentenced to death for 12 counts of murder in aid of racketeering. Co-defendants Kidada Savage and Steven Northington were also convicted at trial and sentenced to life in prison.
U.S. District Judge R. Barclay Surrick also ordered five years of supervised release and a $100 special assessment.
The case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation
It is being prosecuted by Assistant U.S. Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin of the Criminal Division’s Capital Case Section.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Kaboni Savage Soldier Sentenced to LifeRead the Press Release
PHILADELPHIA – Robert Merritt, 34, of Philadelphia, was sentenced today to life in prison for his role in the October 2004 firebombing that killed members of a federal witness’s family on the orders of drug kingpin Kaboni Savage. On May 13, 2013, a federal jury found Merritt guilty of conspiracy to participate in a long-term, large-scale violent drug trafficking enterprise (RICO conspiracy) and the murders of family members of a federal witness, Eugene Coleman. Six people, including four children, were killed in the arson on Oct. 9, 2004.
Merritt participated in the firebombing with his cousin, Lamont Lewis, who pleaded guilty for his role in the murders. They were members of Kaboni Savage’s drug trafficking organization. Savage was also convicted at the May 2013 trial and sentenced to death for 12 counts of murder in aid of racketeering. Co-defendants Kidada Savage and Steven Northington were also convicted at trial and sentenced to life in prison.
U.S. District Judge R. Barclay Surrick also ordered five years of supervised release and a $100 special assessment.
The case was investigated by the FBI, the Internal Revenue Service – Criminal Investigation Division, the Philadelphia Police Department, the Philadelphia District Attorney’s Office, and the Maple Shade, New Jersey Police Department. The United States Bureau of Prisons, the United States Marshals Service, and HIDTA (High Intensity Drug Trafficking Area) also assisted in the investigation
It is being prosecuted by Assistant U.S. Attorneys David E. Troyer and John M. Gallagher and Trial Attorney Steve Mellin of the Criminal Division’s Capital Case Section.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525KCK Man Indicted for Airport Bomb HoaxRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was indicted by a federal grand jury today for a bomb hoax at Kansas City International Airport.
David James Cain, 33, of Kansas City, Kan., was charged in a two-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Cain conveyed false information about a bomb on Aug. 31, 2014. Cain allegedly told two persons at a ticket counter at Kansas City International Airport that there was a bomb in a truck he had parked in front of Terminal B of that airport.
The federal indictment charges Cain with one count of making a bomb hoax and one count of conveying false information.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Brian Casey. It was investigated by the FBI and the Missouri State Highway Patrol.International Terrorism Defendant Pleads Guilty in Manhattan Federal CourtRead the Press Release
WASHINGTON – Assistant Attorney General for National Security John Carlin and United States Attorney for the Southern District of New York Preet Bharara announced that Adel Abdel Bary, aka “Adel Mohammed Abdul Almagid Abdel Bary,” aka “Abbas,” aka “Abu Dia,” aka “Adel” (“Bary”), pleaded guilty in Manhattan federal court to international terrorism charges in connection with Bary’s work on behalf of al Qaeda and the Egyptian Islamic Jihad. Bary was extradited to the United States from the United Kingdom on Oct. 6, 2012. Bary pleaded guilty to a three-count superseding information charging him with conspiring to kill U.S. nationals, conspiring to make a threat to kill, injure, intimidate, and damage and destroy property by means of an explosive, and making such a threat. Following the defendant’s plea of guilty, Judge Lewis A. Kaplan asked for further information regarding the basis of the plea agreement which the parties will provide within a week.
According to the indictment on which Bary’s extradition was based, the superseding information to which he pled, other documents filed in Manhattan federal court, and statements made at today’s guilty plea:
In 1997 and 1998, Bary led the London cell of the Egyptian Islamic Jihad (“EIJ”) organization. EIJ, which was led for years by co-defendant Ayman al Zawahiri, was dedicated to the forceful overthrow of the Egyptian Government and to violent opposition of the United States, in part, for its support of the Government in Egypt. By February 1998, EIJ had effectively merged with al Qaeda and EIJ joined with al Qaeda in targeting American civilians. To that end, in February 1998, indicted co-defendant Usama Bin Laden and Zawahiri endorsed a purported fatwah under the banner of the “International Islamic Front for Jihad on the Jews and Crusaders.” This fatwah stated that Muslims should kill Americans – including civilians – anywhere in the world where they can be found. Then again, on Aug. 4, 1998, EIJ published a statement threatening to retaliate against America for its claimed involvement in the apprehension of EIJ members. A copy of this statement was found in an office used by Bary and his London-based co-conspirators.
While in London, Bary pledged his commitment to pursue the goals of EIJ and to follow the orders of the leadership of the group. Many of the leading members of EIJ became influential members of al Qaeda, including indicted co-defendants Ayman al Zawahiri and indicted co-defendant Muhammad Atef, both of whom later sat on the majlis al shura (or consultation council) of al Qaeda. Zawahiri is now the declared leader of al Qaeda.
On Aug. 7, 1998, three days after EIJ published its threat to retaliate against America, al Qaeda operatives bombed the United States Embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, killing 224 people. Bary transmitted, via international telephone calls to the media, the contents of al Qaeda’s claims of responsibility for the Aug. 7, 1998, bombings. These claims of responsibility included threats of future terrorist attacks by al Qaeda and its allies, and were sent from London, England, to media organizations in France, Qatar and the United Arab Emirates on Aug. 8, 1998 – the day after the embassy bombings.
In August 1998, both before and after the bombings, Bary additionally arranged for messages to be transmitted from members of the media to his co-conspirators, including Bin Laden and Zawahiri, and conveyed messages from his co-conspirators, including Bin Laden and Zawahiri, to members of the media. Bary also used an office in London, which he shared with co-conspirators, to store documents, including the claims of responsibility described above, as well as for other conduct related to the conspiracy to murder U.S. nationals.
***
In connection with his role in transmitting al Qaeda’s claims of responsibility for the bombings of the U.S. Embassies in Nairobi, Kenya and Dar es Salaam, Tanzania, Bary pleaded guilty to one count of conspiring to make a threat to kill, injure, intimidate, and damage and destroy property by means of an explosive, which carries a maximum term of 10 years in prison, and one count of making such a threat, which carries a maximum term of 10 years in prison. In connection with his role in the conspiracy—led by Bin Laden and Zawahiri—to attack American targets around the world, Bary pleaded guilty to one count of conspiring to kill U.S. nationals, which carries a maximum term of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Two co-defendants, Khalid al Fawwaz, aka “Khaled Abdul Rahman Hamad al Fawwaz,” aka “Abu Omar,” aka “Hamad,” and Anas al Liby, aka “Nazih al Raghie,” aka “Anas al Sebai,” are scheduled to commence trial on Nov. 3, 2014, before Judge Kaplan. The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Bharara praised the outstanding efforts of the Federal Bureau of Investigation, the New York City Police Department, the United States Marshals Service, and the Metropolitan Police Department of London, England (New Scotland Yard). U.S. Attorney Bharara also thanked the U.S. Department of Justice’s Office of International Affairs and National Security Division for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin, and Stephen J. Ritchin are in charge of the prosecution.
# # #
14-1001
International Terrorism Defendant Pleads Guilty in Manhattan Federal CourtRead the Press Release
Assistant Attorney General for National Security John Carlin and United States Attorney for the Southern District of New York Preet Bharara announced that Adel Abdel Bary, aka “Adel Mohammed Abdul Almagid Abdel Bary,” aka “Abbas,” aka “Abu Dia,” aka “Adel” (“Bary”), pleaded guilty in Manhattan federal court to international terrorism charges in connection with Bary’s work on behalf of al Qaeda and the Egyptian Islamic Jihad. Bary was extradited to the United States from the United Kingdom on Oct. 6, 2012. Bary pleaded guilty to a three-count superseding information charging him with conspiring to kill U.S. nationals, conspiring to make a threat to kill, injure, intimidate, and damage and destroy property by means of an explosive, and making such a threat. Following the defendant’s plea of guilty, Judge Lewis A. Kaplan asked for further information regarding the basis of the plea agreement which the parties will provide within a week.
According to the indictment on which Bary’s extradition was based, the superseding information to which he pled, other documents filed in Manhattan federal court, and statements made at today’s guilty plea:
In 1997 and 1998, Bary led the London cell of the Egyptian Islamic Jihad (“EIJ”) organization. EIJ, which was led for years by co-defendant Ayman al Zawahiri, was dedicated to the forceful overthrow of the Egyptian Government and to violent opposition of the United States, in part, for its support of the Government in Egypt. By February 1998, EIJ had effectively merged with al Qaeda and EIJ joined with al Qaeda in targeting American civilians. To that end, in February 1998, indicted co-defendant Usama Bin Laden and Zawahiri endorsed a purported fatwah under the banner of the “International Islamic Front for Jihad on the Jews and Crusaders.” This fatwah stated that Muslims should kill Americans – including civilians – anywhere in the world where they can be found. Then again, on Aug. 4, 1998, EIJ published a statement threatening to retaliate against America for its claimed involvement in the apprehension of EIJ members. A copy of this statement was found in an office used by Bary and his London-based co-conspirators.
While in London, Bary pledged his commitment to pursue the goals of EIJ and to follow the orders of the leadership of the group. Many of the leading members of EIJ became influential members of al Qaeda, including indicted co-defendants Ayman al Zawahiri and indicted co-defendant Muhammad Atef, both of whom later sat on the majlis al shura (or consultation council) of al Qaeda. Zawahiri is now the declared leader of al Qaeda.
On Aug. 7, 1998, three days after EIJ published its threat to retaliate against America, al Qaeda operatives bombed the United States Embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, killing 224 people. Bary transmitted, via international telephone calls to the media, the contents of al Qaeda’s claims of responsibility for the Aug. 7, 1998, bombings. These claims of responsibility included threats of future terrorist attacks by al Qaeda and its allies, and were sent from London, England, to media organizations in France, Qatar and the United Arab Emirates on Aug. 8, 1998 – the day after the embassy bombings.
In August 1998, both before and after the bombings, Bary additionally arranged for messages to be transmitted from members of the media to his co-conspirators, including Bin Laden and Zawahiri, and conveyed messages from his co-conspirators, including Bin Laden and Zawahiri, to members of the media. Bary also used an office in London, which he shared with co-conspirators, to store documents, including the claims of responsibility described above, as well as for other conduct related to the conspiracy to murder U.S. nationals.
* * *
In connection with his role in transmitting al Qaeda’s claims of responsibility for the bombings of the U.S. Embassies in Nairobi, Kenya and Dar es Salaam, Tanzania, Bary pleaded guilty to one count of conspiring to make a threat to kill, injure, intimidate, and damage and destroy property by means of an explosive, which carries a maximum term of 10 years in prison, and one count of making such a threat, which carries a maximum term of 10 years in prison. In connection with his role in the conspiracy—led by Bin Laden and Zawahiri—to attack American targets around the world, Bary pleaded guilty to one count of conspiring to kill U.S. nationals, which carries a maximum term of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Two co-defendants, Khalid al Fawwaz, aka “Khaled Abdul Rahman Hamad al Fawwaz,” aka “Abu Omar,” aka “Hamad,” and Anas al Liby, aka “Nazih al Raghie,” aka “Anas al Sebai,” are scheduled to commence trial on Nov. 3, 2014, before Judge Kaplan. The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. Attorney Bharara praised the outstanding efforts of the Federal Bureau of Investigation, the New York City Police Department, the United States Marshals Service, and the Metropolitan Police Department of London, England (New Scotland Yard). U.S. Attorney Bharara also thanked the U.S. Department of Justice’s Office of International Affairs and National Security Division for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin, and Stephen J. Ritchin are in charge of the prosecution.
International Terrorism Defendant Pleads Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Assistant Attorney General for National Security John Carlin announced that ADEL ABDEL BARY, a/k/a “Adel Mohammed Abdul Almagid Abdel Bary,” a/k/a “Abbas,” a/k/a “Abu Dia,” a/k/a “Adel” (“BARY”), pled guilty in Manhattan federal court to international terrorism charges in connection with BARY’s work on behalf of al Qaeda and the Egyptian Islamic Jihad. BARY was extradited to the United States from the United Kingdom on October 6, 2012. BARY pled guilty to a three-count superseding Information charging him with conspiring to kill U.S. nationals, conspiring to make a threat to kill, injure, intimidate, and damage and destroy property by means of an explosive, and making such a threat. Following the defendant’s plea of guilty, Judge Lewis A. Kaplan asked for further information regarding the basis of the plea agreement, which the parties will provide within a week.
Manhattan U.S. Attorney Preet Bharara said: “Adel Abdel Bary filled supporting positions in Egyptian Islamic Jihad and al Qaeda, assisting in fomenting and inciting violence and terrorism, and conspiring to kill innocent people, including American civilians serving their country abroad. Today he has admitted his guilt, and subject to the further information requested by the judge, awaits the sentence to be imposed by an American civilian court.”
According to the Indictment based on which BARY was extradited, the Superseding Information to which he pled, other documents filed in Manhattan federal court, and statements made at today’s guilty plea:
In 1997 and 1998, BARY led the London cell of the Egyptian Islamic Jihad (“EIJ”) organization. EIJ, which was led for years by co-defendant Ayman al Zawahiri, was dedicated to the forceful overthrow of the Egyptian Government and to violent opposition of the United States, in part, for its support of the Government in Egypt. By February 1998, EIJ had effectively merged with al Qaeda and EIJ joined with al Qaeda in targeting American civilians. To that end, in February 1998, indicted co-defendant Usama Bin Laden and Zawahiri endorsed a purported fatwah under the banner of the “International Islamic Front for Jihad on the Jews and Crusaders.” This fatwah stated that Muslims should kill Americans – including civilians – anywhere in the world where they can be found. Then again, on August 4, 1998, EIJ published a statement threatening to retaliate against America for its claimed involvement in the apprehension of EIJ members. A copy of this statement was found in an office used by BARY and his London-based co-conspirators.
While in London, BARY pledged his commitment to pursue the goals of EIJ and to follow the orders of the leadership of the group. Many of the leading members of EIJ became influential members of al Qaeda, including Zawahiri and indicted co-defendant Muhammad Atef, both of whom later sat on the majlis al shura (or consultation council) of al Qaeda. Zawahiri is now the declared leader of al Qaeda.
On August 7, 1998, three days after EIJ published its threat to retaliate against America, al Qaeda operatives bombed the United States Embassies in Nairobi, Kenya, and Dar es Salaam, Tanzania, killing 224 people. BARY transmitted, via international telephone calls to the media, the contents of al Qaeda’s claims of responsibility for the August 7, 1998, bombings. These claims of responsibility included threats of future terrorist attacks by al Qaeda and its allies, and were sent from London, England, to media organizations in France, Qatar, and the United Arab Emirates on August 8, 1998 – the day after the embassy bombings.
In August 1998, both before and after the bombings, BARY additionally arranged for messages to be transmitted from members of the media to his co-conspirators, including Bin Laden and Zawahiri, and conveyed messages from his co-conspirators, including Bin Laden and Zawahiri, to members of the media. BARY also used an office in London, England, which he shared with co-conspirators, to store documents, including the claims of responsibility described above, as well as for other conduct related to the conspiracy to murder U.S. nationals.
In connection with his role in transmitting al Qaeda’s claims of responsibility for the bombings of the U.S. Embassies in Nairobi, Kenya and Dar es Salaam, Tanzania, BARY pled guilty to one count of conspiring to make a threat to kill, injure, intimidate, and damage and destroy property by means of an explosive, in violation of 18 U.S.C. §§ 844(e) and (n), which carries a maximum term of 10 years in prison, and one count of making such a threat, in violation of 18 U.S.C. § 844(e), which carries a maximum term of 10 years in prison. In connection with his role in the conspiracy—led by Bin Laden and Zawahiri—to attack American targets around the world, BARY pled guilty to one count of conspiring to kill U.S. nationals, in violation of 18 U.S.C. §§ 371 and 2332(a)(1), which carries a maximum term of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Two co-defendants, Khalid al Fawwaz, a/k/a “Khaled Abdul Rahman Hamad al Fawwaz,” a/k/a “Abu Omar,” a/k/a “Hamad,” and Anas al Liby, a/k/a “Nazih al Raghie,” a/k/a “Anas al Sebai,” are scheduled to commence trial on November 3, 2014, before the Honorable Lewis A. Kaplan. The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Mr. Bharara praised the outstanding efforts of the Federal Bureau of Investigation, the New York City Police Department, the United States Marshals Service, and the Metropolitan Police Department of London, England (New Scotland Yard). Mr. Bharara also thanked the U.S. Department of Justice’s Office of International Affairs and National Security Division for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Sean S. Buckley, Adam Fee, Nicholas J. Lewin, and Stephen J. Ritchin are in charge of the prosecution.
US v. Adel Bary Plea Agreement
U.S. v. Adel Bary InformationFraudsters Plead Guilty in Scheme to Finance the Purchase of Luxury Vehicles with the Identity Information of OthersRead the Press Release
Baltimore, Maryland – Michael Lee Kelly, age 34, of Baltimore, Maryland pleaded guilty today to a bank fraud conspiracy and aggravated identity theft, in a scheme to use the identity information of others to finance luxury automobiles for his own use and to rent to others.Co-conspirators Michael Christopher Marshall, age 35, of Baltimore; Smita Esha Shandelya, age 28, of Pikesville, Maryland; and Jamila Nashira Davis, age 35, of Baltimore, pleaded guilty to their roles in the scheme earlier this week.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; and Chief James W. Johnson of the Baltimore County Police Department.
According to their plea agreements, Kelly and co-defendant Michael Christopher Marshall selected automobiles to purchase from Maryland dealerships and then used the identity information of other individuals to purchase and finance the purchase of those vehicles. In some cases the individuals were willing participants. In other cases, Kelly and Marshall used stolen identity information, counterfeit identification documents, and an imposter posing as the victim to compete the purchases.For example, in May of 2010, Marshall asked Kelly to find an individual who was about the same age as “GY,” an individual whose stolen identity information was in Marshall’s possession. Marshall knew that GY had an excellent credit rating. According to the plea agreements, Kelly recruited a family member to pose as the victim GY and obtained a counterfeit identification bearing the personal identity information GY but the picture of his family member. Kelly, Marshall and Kelly’s family member purchased a 2007 Mercedes S-550, a 2009 Audi S5, and a 2008 BMW using the GY identity.
According to their plea agreements, Shandelya had a romantic relationship with Marshall; and Davis had a romantic relationship with Kelly. Both women knew that Marshall and Kelly were not employed but drove luxury vehicles. Both women knew that Marshall and Kelly would not qualify to purchase and finance so many vehicles, and subsequently learned that Marshall and Kelly used the identifying information of others to purchase the cars. At Marshall’s request, in the summer and fall of 2010, Shandelya purchased vehicles for Marshall to rent to others by completing false financing applications that reflected inflated income, and which she supported with counterfeit employment pay stubs. In November 2010, Davis attempted to purchase a car for herself, but was denied financing. Kelly provided Davis with a color photocopy of a license bearing the identity information of “GN” for her to use as a co-signer. Although Davis did not know GN, nor did she recognize the person pictured on the license, she provided the photocopy to the car dealer. After the car dealer told Davis that GN would have to appear in person, Kelly went to the car dealership with the individual pictured in the fake GN identification and completed a new credit application using GN as the co-signer. The real GN had placed a credit alert on his credit report and received an alert regarding the application for credit in his name. He called the dealership, which cancelled the sale. The real GN arrived at the dealership shortly after Kelly and the GN imposter left the area.
As a result of the scheme, Marshall is responsible for between $400,000 and $1 million in fraudulently obtained vehicles; Shandelya is responsible for between $200,000 and $400,000 in fraudulently obtained vehicles; and Kelly is responsible for between $120,000 and $200,000 in fraudulently obtained vehicles.
Kelly, Marshall and Shandelya each face a maximum sentence of 30 years in prison for the bank fraud conspiracy. Kelly and Marshall also face a mandatory two years in prison, consecutive to any other sentence for aggravated identity theft. Davis faces a maximum penalty of one year in prison for a misdemeanor count of identity theft. U.S. District Judge Richard D. Bennett has scheduled sentencing for Kelly on January 9, 2015 at 3:00 p.m.; for Marshall on January 6, 2015 at 11:00 a.m.; for Shandelya on December 16, 2014 at 3:00 p.m.; and for Davis on December 17, 2014 at 3:00 p.m.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service and the Baltimore County Police Department for their work in the investigation and thanked Assistant U.S. Attorney Tamera L. Fine, who is prosecuting the case.Former President of Life Insurance Company Pleads Guilty to Embezzlement ChargeRead the Press Release
LITTLE ROCK, AR – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation; and Deborah Perry, Regional Director of the United States Department of Labor, Employee Benefits Security Administration; announced today that John Mathis Lile, III, age 56, of Little Rock has pleaded guilty to theft or embezzlement in connection with health care.
Lile was President of the now defunct Cosmopolitan Life Insurance Company (“Cosmo”), which funded and managed self-insurance health care plans for small businesses around the State. Last April, the Grand Jury for the Eastern District of Arkansas indicted Lile for misusing Cosmo funds. Appearing today before the Honorable Susan Webber Wright in United States District Court, Lile admitted that he abused his position by using a company-issued American Express credit card to pay for thousands of dollars in personal expenses over a three-year period. His charges ran the gamut, including family vacations to Las Vegas, Destin, and Italy, restaurant supplies, cruises, tanning, Hannah Montana tickets, and outlet shopping, among numerous other expenses.
Under the terms of the plea agreement, Lile has agreed to pay full restitution to Cosmo and to serve one year and one day in federal prison. In return, the United States agreed to dismiss a related charge tied to AIBA. The prison sentence and restitution will be imposed by the Court at a later date.
“It is unconscionable for executives to abuse their positions of power by stealing from the very companies that they are bound to serve,” stated Thyer. “The negative consequences of such greed are still greater when those companies play important roles in the health care industry. Honest, hard-working people must be able to trust that the organizations upon which they rely for healthcare will not be bled dry from the inside.”
“I hope this sends a clear message to all who sponsor or transact business with employee benefit plans that the federal government will aggressively pursue those who commit crimes against employees and retirees of private-sector health and pension plans” said Perry.
SAC Resch added, “the FBI enjoys a strong partnership with the United States Department of Labor Employee Benefits Security Administration. We will continue to work with the Department of Labor and the United States Attorney’s Office to aggressively pursue these types of crimes.”
The FBI and the United States Department of Labor led the investigation. First Assistant United States Attorney Patrick C. Harris and Assistant United States Attorney Alexander D. Morgan prosecuted the case for the United States.
Former Governor Convicted of Illegal Activity in Two Congressional CampaignsRead the Press Release
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A federal jury in New Haven has found former governor JOHN G. ROWLAND guilty of all seven counts of an indictment related to his efforts to conceal the extent of his involvement in two federal election campaigns. The trial began on September 3 and the jury returned its verdict this afternoon. ROWLAND, 57, of Middlebury, served as governor of Connecticut from 1995 to 2004, and in the U.S. House of Representatives from 1985 to 1991.
“Americans will not tolerate corrupt conduct in the electoral process,” stated First Assistant U.S. Attorney Michael J. Gustafson. “Lies and deception can never be accepted as politics as usual in Connecticut. All voters have a right to know the truth when they cast their ballots. I want to acknowledge the diligent work of the U.S. Postal Inspectors, who expertly investigated this scheme, and our trial team, who did an exemplary job in prosecuting this case. Together, these dedicated public servants have stood up for transparency, a vital piece of our electoral process.”
“The verdict in this case should give the public a sense that justice does prevail,” stated Shelly A. Binkowski, Inspector in Charge for the Boston Division of the U.S. Postal Inspection Service. “Public officials are not immune from the law. The two-year commitment by Postal Inspectors conducting this investigation was an enormous undertaking and truly a team effort with the U.S. Attorney’s Office. Postal Inspectors have a long history of protecting the public from complex fraud schemes. We have the skills and expertise to ensure that anyone who commits a crime with this level of dishonesty and deceit be prosecuted and punished to the fullest extent of the law.”
According to evidence introduced during the trial, in approximately October 2009, ROWLAND devised a scheme to work for the campaign of a candidate seeking election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District during the 2009 and 2010 election cycle, and to conceal from the Federal Election Commission (“FEC”) and the public that he would be paid to perform that work. To make the illegal arrangement appear legitimate, ROWLAND drafted a sham consulting contract pursuant to which he would purportedly perform work for a separate corporate entity owned by the candidate.
During the 2011 and 2012 election cycle, another candidate, Lisa Wilson-Foley, was seeking election to the U.S. House of Representatives from Connecticut’s Fifth Congressional District. Wilson-Foley’s husband, Brian Foley, owns a Connecticut nursing home company and a number of other related companies, including a real estate company. ROWLAND conspired with Wilson-Foley, Foley and others to conceal from the FEC and the public that ROWLAND was paid money in exchange for services he provided to Wilson-Foley’s campaign.
As part of the scheme, ROWLAND proposed to Wilson-Foley and Foley that he be hired to work on the campaign. In order to retain ROWLAND’s services for the campaign while reducing the risk that his paid campaign role would be disclosed to the public, ROWLAND, Wilson-Foley and Foley agreed that ROWLAND would be paid by Foley to work on the campaign. ROWLAND, Foley and others then created and executed a fictitious contract outlining an agreement purportedly for consulting services between ROWLAND and the law offices of an attorney who worked for Foley’s nursing home company. Foley made regular payments to ROWLAND for his work on behalf of Wilson-Foley’s campaign and routed those payments from his real estate company through the law offices of the attorney. ROWLAND provided nominal services to Foley’s nursing home company in order to create a “cover” that he was being paid for those nominal services when, in fact, he was being paid in exchange for his work on behalf of Wilson-Foley’s campaign.
Between September 2011 and April 2012, ROWLAND was paid approximately $35,000 for services rendered to Wilson-Foley’s campaign. The payments originated with Foley and constituted campaign contributions, but were not reported to the FEC in violation of federal campaign finance laws.
The jury found ROWLAND guilty of two counts of falsification of records in a federal investigation, a charge that carries a maximum term of imprisonment of 20 years on each count, one count of conspiracy, a charge that carries a maximum term of imprisonment of five years, two counts of causing false statements to be made to the FEC, a charge that carries a maximum term of imprisonment of five years on each count, and two counts of causing illegal campaign contributions, a charge that carries a maximum term of imprisonment of one year on each count.
ROWLAND is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on December 12, 2014.
In December 2004, ROWLAND pleaded guilty to conspiracy to commit honest services mail fraud and tax fraud. On March 18, 2005, he was sentenced to 12 months and one day of imprisonment and four months of home confinement. He was also ordered to perform 300 hours of community service.
On March 31, 2014, Foley and Wilson-Foley each pleaded guilty to conspiring to make illegal campaign contributions. They await sentencing.
This matter is being investigated by the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorneys Liam Brennan and Christopher Mattei.PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Former Correctional Officers at Big Spring Correctional Center Are SentencedRead the Press Release
ABILENE, Texas — Former Correctional Officers at Big Spring Correctional Center (BSCC), in Big Spring, Texas, who pleaded guilty to federal charges stemming from a Department of Justice (DOJ) Office of the Inspector General (OIG) investigation that was initiated when an inmate committed suicide in the facility two years ago while they were on duty, were sentenced today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
U.S. District Judge Sam R. Cummings sentenced Frederick Hernandez, 45, of Big Spring, to 10 months in federal prison. Hernandez pleaded guilty in June 2014 to one count of making false statements and aiding and abetting. Judge Cummings sentenced Christopher Moore, 42, of Dallas, to 3 years probation. Moore pleaded guilty to one count of misprision of a felony.
According to plea documents filed in the case, from August 22 - 23, 2012, Hernandez and Moore were assigned to the Flight Line Unit in the Special Housing Unit (SHU) at BSCC; Hernandez was the Senior Correctional Officer whose primary responsibility was to ensure the safety and security of the inmates. Their duties included making mandatory 30-minute safety checks of each cell and conducting six mandatory formal inmate counts during a 24-hour period, beginning at 12:01 a.m., 3:00 a.m., 5:00 a.m., 10:00 a.m., 4:00 p.m. and 10:00 p.m. Each Correctional Officer is further required to certify that the mandatory 30-minute safety check of each cell and the mandatory formal inmate counts were made.
An inmate housed in the Flight Line Unit committed suicide during the 8:00 p.m., to 8:00 a.m. shift on August 22 - 23, 2012, and was discovered during the morning feeding on August 23, 2012.
Hernandez admitted that he completed, signed and submitted to the Department of Justice, as required by law, the “SHU Control Log” forms indicating that formal counts of inmates had been performed from 12:01 a.m. to 5:10 a.m., on August 22 – 23, 2012. Hernandez further admitted he knew the logs were not correct and were false in that the formal counts of inmates were not conducted.
Moore admitted he knew Correctional Officers at BSCC submitted forms to the Department of Justice, as required by law, indicating that safety check rounds were conducted, when, in fact, he knew they had not been conducted. He further admitted that he concealed this fact and failed to advise an authority.
In related cases, two other defendants, James McKinnon, 22, and Jamie Navarette Salgado, 24, each pleaded guilty in September 2013; McKinnon pleaded guilty to one count of misprision of a felony and Salgado pleaded guilty to one count of making false statements and aiding and abetting. In December 2013, McKinnon was sentenced to six months in federal prison and ordered to pay a $500.00 fine. McKinnon has served his prison time, and Salgado is awaiting sentencing. McKinnon and Salgado also worked as Correctional Officers assigned to the Flight Line Unit in the SHU at BSCC. Salgado admitted making false entries on logs and falsely indicating he had conducted safety rounds. McKinnon admitted that he knew entries on the logs were incorrect and that he failed to advise an authority.
The Department of Justice Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.
Former Background Investigator for Federal Government Sentenced for Making A False StatementRead the Press Release
WASHINGTON – Todd D. Mitnick, 36, a former background investigator who did work under contract for the U.S. Office of Personnel Management (OPM), was sentenced today to three months in prison for his falsification of work on background investigations of federal employees and contractors, announced U.S. Attorney Ronald C. Machen Jr. and Patrick E. McFarland, Inspector General for the Office of Personnel Management.
Mitnick, of Plainview, N.Y., pled guilty in June 2014 in the U.S. District Court for the District of Columbia to making a false statement. He was sentenced by the Honorable Senior Judge Thomas F. Hogan. Upon completion of his prison time, Mitnick will be placed on two years of supervised release. During that time, Senior Judge Hogan ordered that he perform 100 hours of community service. In addition, the judge ordered Mitnick to pay $86,181 in restitution to the federal government.
According to a statement of offense submitted to the Court, Mitnick was employed by USIS, formerly known as U.S. Investigations Services, Inc., as an investigator under contract to conduct background investigations on behalf of OPM’s Federal Investigative Services.
Between September 2010 and August 2011, in numerous Reports of Investigations on background investigations, Mitnick represented that he had interviewed a source, including the subject of the background investigation, or reviewed a record regarding the subject of the background investigation. In fact, he had not conducted the interviews or obtained the records of interest. These reports were utilized and relied upon by the agencies requesting the background investigations to determine whether the subjects were suitable for positions having access to classified information, for positions impacting national security, or for receiving or retaining security clearances, or for positions involving public trust.
Mitnick’s false representations have required Federal Investigative Services to reopen and rework numerous background investigations that were assigned to him during the time period of his falsifications, at an estimated cost of at least $86,181 to the U.S. government.
Federal Investigative Services has a robust integrity assurance program which utilizes a variety of methods to ensure the accuracy of reported information. The falsification of investigative case work by the defendant was detected through the program.
This is one of numerous cases prosecuted by the U.S. Attorney’s Office for the District of Columbia since 2008 involving false representations by background investigators and record checkers working on federal background investigations. In addition to Mitnick, 19 other background investigators and two record checkers have been convicted of charges.
Federal Investigative Services, through its workforce of approximately 7,600, including 6,100 field investigators, is responsible for conducting background investigations for numerous federal agencies and their contractors, on individuals either employed by or seeking employment with those agencies or contractors. Federal Investigative Services conducted more than 2.3 million investigations during the 2013 fiscal year. More than 700,000 of these investigations involved applicants for access or continued access to classified information.
In performing background investigations, the investigators conduct interviews of individuals who have information about the person who is the subject of the review. In addition, the investigators seek out, obtain, and review documentary evidence, such as employment records, to verify and corroborate information provided by either the subject of the background investigation or by persons interviewed during the investigation. After conducting interviews and obtaining documentary evidence, the investigators prepare a Report of Investigation containing the results of the interviews and document reviews, and electronically submit the material to OPM in Washington, D.C. OPM then provides a copy of the investigative file to the requesting agency, which can use the information to determine an individual’s eligibility for employment or a security clearance.
In announcing the sentence, U.S. Attorney Machen and Inspector General McFarland praised the efforts of Assistant Special Agent in Charge Nathaniel Smith, OPM, Office of the Inspector General, and Philip Kroop, David Newcomer, and Kevin Cassidy, OPM, Federal Investigative Services. They also acknowledged the work of Paralegal Specialist Donna Galindo, as well as Assistant U.S. Attorneys Ellen Chubin Epstein and Philip A. Selden, who investigated and prosecuted this matter.
14-211Federal Court Bars Southern California Man from Preparing Federal Tax ReturnsRead the Press Release
A federal court in Los Angeles has permanently barred a Rancho Cucamonga, California, man from preparing federal tax returns for others, the Justice Department announced today.
The permanent injunction order, to which Robert L. Cardoza consented, was entered by U.S. District Judge Ronald S.W. Lew for the Central District of California.
The complaint alleged that Cardoza prepared returns that fraudulently claimed tax deductions for his customers, including bogus deductions for medical and dental expenses, charitable contributions, unreimbursed employee business expenses, and car and truck expenses. According to the complaint, Cardoza also falsely represented to his customers that he was a certified public accountant and that he had obtained a master’s degree in business administration and a doctoral degree. According to the complaint, since 2008, Cardoza prepared over 5,000 federal tax returns and his fraudulent return preparation resulted in the loss of millions of dollars to the U.S. Treasury.
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. Robert L. Cardoza
Final Judgment of Permanent Injunction Against Robert L. CardozaExecutive Director of La Jolla Synagogue Held to Account for Betrayal Leader Who Embezzled Hundreds of Thousands of Dollars from Congregation Beth El Sentenced to 18 Months in CustodyRead the Press Release
United States District Judge Dana M. Sabraw today sentenced Eric S. Levine to 18 months in prison for stealing hundreds of thousands of dollars from La Jolla’s Congregation Beth El synagogue.
Levine served as Beth El’s Executive Director from July 2007 to December 2013, overseeing the synagogue’s annual budget. Importantly, he also had access to, and control over, Beth El’s bank accounts, credit card accounts, and bookkeeping records. Starting in at least February 2008, he began embezzling money from the synagogue for his own use. He continued his thefts until he left the position in December 2013. As part of his guilty plea, Levine admitted misappropriating $394,872.99 from the synagogue over those five years. Based on additional accounting analysis and review of financial records, the congregation identified its ultimate losses from Levine’s conduct as over $540,000.
Levine was able to carry out his embezzlement by virtue of his control over Beth El’s bank account and credit card. On most occasions, he simply used money located in the congregation’s bank account to pay his own bills directly. On other occasions, he transferred balances from his personal credit card to the congregation’s credit card account, and then paid his balances with the congregation’s funds.
In order to fool the congregation, its bookkeepers, and its executive staff, Levine falsified Beth El’s books and records to cover up his ongoing theft. He hid thousands of dollars in payments to himself by creating entries for legitimate expenses of the synagogue, in categories such as “Ritual Fund,” “Rabbi Emeritus,” “High Holidays,” “Purim Baskets,” “janitorial expense,” “utilities,” “landscaping expense,” and “repair / replace reserve fund.” His mischaracterization of payments made it appear that more of Beth El’s funds were spent on legitimate synagogue expenses than was actually spent. Levine also prepared false financial reports and annual budget proposals based on these inflated figures.
Instead of these legitimate expenses, the funds were used to pay a variety of Levine’s credit card charges, including trips to Mexico, Hawaii, Las Vegas, and Canada; charges at La Costa Resort Spa; monthly membership and regular $1,400 charges for a personal trainer at 24 Hour Fitness; and expenditures at StubHub, Sleep Train, Discount Tire. Having his hand in Beth El’s till also allowed Levine to outfit his home with expensive leather furniture and BBQ equipment, buy fancy jewelry, send his children to private school, and purchase exclusive Disney vacations. After having pored over the congregation’s records from the time of Levine’s tenure, Beth El’s new Executive Director remarked in her letter to the Court: “From Eric’s first months at Beth El in 2007 until the day he left, every Beth El credit card statement is riddled with his personal expenses: restaurants, gas, iTunes, men’s clothing, travel for his family, home décor. Even after he gave notice of his departure to the Beth El board, Eric purchased expensive new smartphones for himself and his wife on Beth El’s Sprint account.”
The President of the synagogue described the impact of Levine’s thefts on the congregation: “Because of his crime, people lost their jobs, their livelihoods, and their lives were changed forever. "No money in the budget," he said, while taking our money to line his pockets.
Because of his crime, we could not install heat in the classrooms for our children. "No money in the budget," he said, while paying off his own credit cards. Because of him, we could not give complementary meals to families. “No money in the budget,” he said, while shopping for his own family, and himself. Our staff gets annual retirement employee contributions of about 2%. In 2009 he told the staff that due to the downturn in the economy, no contributions would be made that year…But there would have been sufficient funds if he had not been stealing…from his own employees, people who have dedicated their lives and souls to Beth El. He took our money, money we raised from our generous congregants, money to be used for the good of our community. He took it.”Beth El’s rabbi explained the personal impact of Levine’s breach of trust in a letter to the Court. “Eric and I worked closely together. Most of our interactions involved the synagogue’s finances, which means he lied to me every day, every time our paths crossed,” he wrote. “Almost the entirety of our operating budget comes from voluntary dues and contributions. Simply put, people will not trust [Beth El] as much, if at all. . . . [Now], our diminished staff spends much more time on accounting than on our mission of creating a lively Jewish community in San Diego. It’s hard to know if we’ll ever be the same.” He also described employees who were laid off by Levine due to claimed budget constraints, including a single mother of two who has yet to find a new job.
One member of the congregation summed up the impact of Levine’s crime on this community:
Even more important [than the theft of funds] is the breach of trust and loss of a sense of reliance on one previously so highly ‘esteemed’ by so many of our Beth El community. Mr. Levine touched the lives of hundreds in our synagogue. We will certainly recover from the loss of funds. What he has done in terms of disappointment as a human being will affect our members and their ability to feel a sense of trust for years to come.In imposing sentence, Judge Sabraw said the case involved “deeply troubling circumstances” because Levine’s scheme victimized both his employer and congregants who shared his life and faith.
“It’s a deception not only of the synagogue, but everyone who makes up the synagogue, so there are hundreds of victims…The sense of betrayal cannot be overstated.”
The Court ordered that Levine pay $543,000 in restitution for the monies he stole from Congregation Beth El. He was also sentenced to three years of supervised release upon completion of his prison term.
U.S. Attorney Laura Duffy said, “Mr. Levine embezzled hundreds of thousands of dollars to finance a life of luxury for himself while betraying the people who believed in him. This defendant was a one-man wrecking ball to this congregation, both financially and emotionally, and today the court imposed a fitting sentence for such abhorrent conduct.”
FBI Acting Special Agent in Charge Robert Howe commented, “Mr. Levine hid behind a facade of honesty and integrity while stealing money from his congregation to support his lavish lifestyle. In doing so, Mr. Levine betrayed the people who trusted him the most and today's sentencing sends a clear message that those who engage in similar criminal conduct will be held accountable for their actions.”
DEFENDANT Eric S. Levine Age: 37 CHARGESMail fraud, Title 18, United States Code, Section 1341
INVESTIGATING AGENCY
Maximum penalties: 20 years in custody; $250,000 fine; 3 years of supervised release; mandatory order of restitution to victimsFederal Bureau of Investigation
Escaped Inmate Sentenced to 36 Months in Prison for Possessing Stolen VehicleRead the Press Release
LAFAYETTE, La. –A Scott, La., man was sentenced to 36 months in prison and two years of supervised release for stealing a car and driving to Florida after escaping from a prison road crew, U.S. Attorney Stephanie A. Finley announced today.
Shawn A. Jollivette, 36, of Scott, was sentenced by U.S. District Judge Elizabeth E. Foote for one count of interstate transportation of a motor vehicle. He was also ordered to pay $197 in restitution. According to evidence presented at the June 24, 2014 guilty plea, Jollivette escaped a road crew work detail on March 27, 2012 in Marksville, La. He was arrested in Florida two days later with keys to a stolen vehicle in his possession. A 9 mm semiautomatic pistol was inside the car, which was found in a parking lot. Jollivette was an Avoyelles Parish Correctional Center inmate and was serving a state sentence. After the state sentence was to be completed, he was scheduled to start serving a federal prison term for a charge of possession of a firearm by a convicted felon.
The U.S. Marshals Service and the ATF conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel prosecuted the case.
DEA Prescription Drug Take-Back Day Sept. 27(Ridding Home of Unused Drugs Discourages Abuse and Addiction)Read the Press Release
BIRMINGHAM -- U.S. Attorney Joyce White Vance and DEA Assistant Special Agent in Charge Clay A. Morris are encouraging residents of North Alabama to take advantage of DEA's next nationwide Prescription Drug Take-Back Day on Sept. 27 to properly dispose of unused prescription drugs.
It is critical to get unused, unwanted and expired prescription drugs out of family medicine cabinets before they can fall into the hands of children and others who might use them to fuel addiction. A new U.S. Drug Enforcement Administration regulation that will permit the establishment of long-term drop-off sites for disposal of prescription pills will go into effect later this year, permitting return of unused medication on an ongoing basis.
The U.S. Attorney and DEA, along with representatives of local law enforcement and the public health and addiction prevention and treatment communities, held a press conference today at the U.S. Attorney's Office in Birmingham to encourage people to take action at this last nationwide take-back day, rather than waiting for the permanent process to come online."Prescription drug abuse and heroin addiction, both at record rates in our community, are strongly linked," Vance said. "Each of us has the responsibility to take every step possible to prevent access and addiction to these drugs and bring down our unacceptably high overdose death rates," she said.
"Cultivating a habit of removing prescriptions from our medicine cabinets that are no longer necessary is a vital step in curtailing easy access, as there are many reports that children have their first contact with opiates at home, in the guise of prescription medication," Vance said.
"Over the past several years, Alabama has seen a significant increase in the use and abuse of opiate-based prescription drugs," Morris said. "Unfortunately, the untreated abuse of opiate-based drugs will lead to the beginning of a cycle of addition that will end in the use of heroin. As we all know, heroin overdose deaths are at record numbers in the Birmingham area," he said."The Prescription Drug Take-Back Initiative sponsored by DEA is one step in a comprehensive plan to remove a simple and often overlooked source of supply of drugs from potential abuse. I would urge parents, educators, civic organizations, faith-based organizations and all citizens to partner with law enforcement and help remove unused pharmaceuticals from the reach of the most vulnerable of potential drug abuse victims...our children," Morris said.
The DEA's ninth nationwide take-back event will give the public a convenient opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous drugs until more permanent drop-off sites are established after the agency's new regulation takes effect Oct. 9. The DEA currently has no plans to sponsor more nationwide Take-Back Days after Sept. 27, as authorized collectors, such as pharmacies, hospitals and clinics, begin offering the drop-off service.
The temporary collection sites will be open from 10 a.m. to 2 p.m. on Sept. 27. Local sites can be found on the DEA website at: http://www.deadiversion.usdoj.gov/drug_disposal/takeback/ . The service is free and anonymous, no questions asked. DEA, however, cannot accept liquids or needles.
Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that flushing unused medicines down the toilet, or throwing them in the trash, pose potential environmental and health hazards.
Last April, Americans turned in 390 tons (over 780,000 pounds) of prescription drugs at nearly 6,100 sites operated by the DEA and more than 4,400 of its state and local law enforcement partners. Combined with DEA's previous Take-Back events, the agency and its partners have taken in more than 4.1 million pounds, or 2,100 tons, of pills.
The new DEA regulation announced last week by U.S. Attorney General Eric Holder should enhance the public's ability to properly dispose of prescription drugs. The new policy authorizes pharmacies, hospitals and clinics to serve as authorized drop-off sites for unused medications. The new rule also enables long-term care facilities to collect controlled substances turned in by residents of those facilities, and it allows prescription drug users everywhere to directly mail in their unused medications to authorized collectors.
In 2011 alone, more than half of the 41,300 unintentional drug overdose deaths in the United States involved prescription drugs, and hazardous opioid pain relievers led to about 17,000 of those deaths, Holder said. Young people are especially susceptible to these dangers. The attorney general noted that nearly four in 10 teens who have misused or abused a prescription drug have obtained it from their parents' medicine cabinet.
Crystal Lake Man Sentenced to 59 Months in Federal Prison for Secret Shopper SchemeRead the Press Release
ROCKFORD — A Crystal Lake, Ill. man was sentenced today to federal prison for mail fraud involving a secret shopper scheme. U.S. District Judge Frederick J. Kapala sentenced MICHAEL S. MACKAY, 48, of Crystal Lake, Ill., to 59 months in federal prison, to be followed by 3 years of supervised release. In addition, Mackay was sentenced to pay restitution of $26,971.39 to the victims of his scheme.
Mackay pleaded guilty to one count of mail fraud on June 13, 2014, admitting that from Sept. 2011 to at least May 16, 2012, he participated in a scheme to defraud victims into falsely believing they were hired to work as “secret shoppers” or payment processors. According to the written plea agreement, after applying to work-at-home advertisements on the Internet, victims would receive a letter with at least one counterfeit negotiable instrument, such as a counterfeit money order. The victims were instructed to deposit the counterfeit negotiable instrument in their financial institution, retain a certain percentage as payment for their services, go to the nearest Western Union and wire transfer the remaining proceeds as instructed. The victims were also instructed to report their experience, believing they were hired as secret shoppers to evaluate local businesses, via email to an email address contained in the letter. The participants in the scheme received the proceeds via the wire transfers before the victims learned that the money orders were counterfeit.
Mackay admitted that during the course of the scheme he received at least $2.5 million in counterfeit negotiable instruments in packages sent to Crystal Lake from New York, Nigeria, and Ghana, and other locations. Each package contained counterfeit money orders and other negotiable instruments in amounts ranging from $500 to $2,000 each of which appeared to be issued by either the United States Postal Service, American Express, Capital One Bank, Citizens National Bank of Texas, First National Bank, or the Navy Federal Credit Union. Mackay received emails from other scheme participants that contained instructions, a “secret shopper” letter, and United States Postal Service Express mailing labels. Mackay then placed a “secret shopper” letter in a United States Postal Service express mailing envelope along with at least two counterfeit money orders to multiple victims throughout the United States. Mackay received wire transfers of at least $10,000 from his victims and others involved in the scheme as payment for his role in the scheme before the victims learned that the negotiable instruments were counterfeit.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Antonio Gomez, Postal Inspector-In-Charge of the Chicago Division of the U.S. Postal Inspection Service.
The government was represented by Assistant U.S. Attorney Michael D. Love.