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25 August 2014
Murphysboro Resident Sentenced on Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn August 21, 2014, Heather L. Richey, 38, of Murphysboro, Ill., was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Richey, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 57 months in federal prison, 3 years of supervised release, and fined $200. The offense occurred between 2010 and January 2014, in Jackson, Williamson, Union, and Franklin Counties. Evidence at the plea and sentencing hearings established that Richey obtained over 44 grams of pseudoephedrine to be used in the manufacture of methamphetamine. Co-defendant Leeann Simmerman was previously sentenced to 108 months in prison for her involvement in the methamphetamine conspiracy. Co-defendants Greg Emery and Tasha Craig have pled guilty and are awaiting sentencing. Ten other co-defendants have pled not guilty and are awaiting jury trial.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, Carbondale Police Department, Illinois State Police/Southern Illinois Drug Task Force, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Multi-Convicted Felon Sentenced to over 11 Years in Prison for Possession of an AK-47 Assault RifleRead the Press Release
Orlando, FL –U.S. District Judge Carlos E. Mendoza today sentenced Tyruss Lydell Lomax (29, Sanford) to 11 years and 8 months in federal prison for possession of a firearm by a convicted felon. The Court also ordered Lomax to forfeit the Century International Arms AK-47 rifle used in the crime. Lomax pleaded guilty on May 14, 2014.
According to court documents, on May 31, 2012, Lomax walked to the rear passenger door of a parked 2006 Dodge Charger and removed an AK-47 assault rifle. He then ran towards the rear of a home in Sanford, Florida and hid. Law enforcement officers on the scene called for Lomax to come out of the home’s backyard, but he refused. Lomax eventually surrendered to officers and was taken into custody. The officers then found the AK-47 and two 30-round magazines near Lomax’s hiding spot. Prior to possessing the rifle, Lomax had been convicted of numerous felonies, including the sale of cocaine and resisting an officer with violence. He was therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Joseph M. Schuster. This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy to reduce violent crime in communities.
Mexican National Admits Unlawfully Possessing A FirearmRead the Press Release
BOISE – Ciro Simon-Camacho, 33, a Mexican National, pleaded guilty today in United States District Court to one count of unlawfully possessing a firearm, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, on May 18, 2014, Boise Police officers stopped a vehicle Simon-Camacho was driving. During the traffic stop, officers saw a handgun underneath his seat. Officers seized the handgun, which was loaded. During their investigation, law enforcement officers discovered that Simon-Camacho was unlawfully present in the United States and had been previously deported from the United States in 2002. Simon-Camacho is prohibited from possessing firearms because of his status as an alien unlawfully in the United States.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of supervised release. The government is seeking forfeiture of the firearm.
Simon-Camacho is scheduled to be sentenced on November 13, 2014, by Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Boise Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; Department of Homeland Security, Immigration and Customs Enforcement; and the Treasure Valley Metro Violent Crimes Task Force. The Metro Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole.
Simon-Camacho is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Mercer County Man Sentenced for Selling HydromorphoneRead the Press Release
BLUEFIELD, W.Va. – Jimmy Dale Wright, age 57, of Rock, West Virginia, was sentenced today in Bluefield, West Virginia, by United States District Court Judge David A. Faber. Wright was sentenced to a 12-month term of imprisonment, and a three year term of supervised release. Wright previously pled guilty in April of 2014, to distributing a quantity of hydromorphone, a powerful and addictive prescription pain medication. Wright admitted that on August 7, 2013, he sold pills to a person who was cooperating with law enforcement authorities. The drug deal took place on Pocosin Fork Road in Lashmeet, Mercer County, West Virginia.
The West Virginia State Police Bureau of Criminal Investigations and the Southern Regional Drug and Violent Crime Task Force conducted the investigation.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Massillon, Ohio Landlords Agree to $850,000 Settlement to Resolve Housing Discrimination LawsuitsRead the Press Release
The Justice Department announced today that Massillon, Ohio landlords John and Mary Ruth have agreed to pay $850,000 to settle lawsuits filed by the Justice Department and other parties alleging that the Ruths discriminated on the basis of race and familial status at properties they formerly owned in Massillon. The settlement must still be approved by United States District Judge John R. Adams in the Northern District of Ohio.
The proposed settlement would resolve a lawsuit filed by the department on October 31, 2011, alleging that the Ruths and the companies through which they manage their properties had discriminated against African Americans and families with children at Yorkshire Apartments, Thackeray Ledges and Wales Ridge— three apartment complexes located in Massillon, Ohio. The settlement would also resolve related lawsuits raising similar allegations filed by Stark County, the Ohio Civil Rights Commission and several former property managers and tenants at the complexes. In an order issued on March 31, 2014, the court noted that 10 of Mr. Ruth’s former employees had testified that they were instructed to discriminate against African Americans and that other former employees had testified that they been instructed to discriminate against families with children. The court ruled that the department had presented sufficient evidence of a pattern or practice of unlawful discrimination by the defendants for the case to go to trial before a jury.
Under the terms of the settlement, the defendants will pay:
· $650,000 in damages and attorney’s fees to the plaintiffs in the lawsuits filed by the Ohio Civil Rights Commission, Stark County and several former residents and property managers;
· $175,000 in damages to 11 additional former residents and employees identified by the United States who had been harmed by the defendants’ discrimination; and
· $25,000 in a civil penalty to the United States.
“It is a sad fact that decades after the passage of the Fair Housing Act, many people still face unlawful discrimination when looking for housing,” said Molly Moran, Acting Assistant Attorney General for the Civil Rights Division. “The magnitude of this settlement makes clear that the Department of Justice will vigorously pursue violations of the Fair Housing Act.”
“The freedom of every family to live where they wish, without regard to their race or if they have kids, is basic to who we are in this country,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “When landlords deny that basic right, there will be consequences. We will continue to work hard to ensure that this fundamental right is protected in Ohio and across the nation.”
The settlement also requires that the defendants hire an independent management company to manage all of their rental properties, receive training on the requirements of the Fair Housing Act and report to the department for a period of three years on their compliance with the settlement. The settlement also requires the defendants to hire a third party to periodically test their properties to ensure compliance with the Fair Housing Act.
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] , or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp .
Massillon Landlords Pay $850,000 to Resolve Housing Discrimination LawsuitsRead the Press Release
The Justice Department announced today that Massillon, Ohio landlords John and Mary Ruth have agreed to pay $850,000 to settle lawsuits filed by the Justice Department and other parties alleging that the Ruths discriminated on the basis of race and familial status at properties they formerly owned in Massillon.
The settlement must still be approved by United States District Judge John R. Adams in the Northern District of Ohio.
The proposed settlement would resolve a lawsuit filed by the department on October 31, 2011, alleging that the Ruths and the companies through which they manage their properties had discriminated against African Americans and families with children at Yorkshire Apartments, Thackeray Ledges and Wales Ridge— three apartment complexes located in Massillon, Ohio. The settlement would also resolve related lawsuits raising similar allegations filed by Stark County, the Ohio Civil Rights Commission and several former property managers and tenants at the complexes. In an order issued on March 31, 2014, the court noted that 10 of Mr. Ruth’s former employees had testified that they were instructed to discriminate against African Americans and that other former employees had testified that they been instructed to discriminate against families with children. The court ruled that the department had presented sufficient evidence of a pattern or practice of unlawful discrimination by the defendants for the case to go to trial before a jury.
Under the terms of the settlement, the defendants will pay:
- $650,000 in damages and attorney’s fees to the plaintiffs in the lawsuits filed by the Ohio Civil Rights Commission, Stark County and several former residents and property managers;
- $175,000 in damages to 11 additional former residents and employees identified by the United States who had been harmed by the defendants’ discrimination; and
- $25,000 in a civil penalty to the United States.
“It is a sad fact that decades after the passage of the Fair Housing Act, many people still face unlawful discrimination when looking for housing,” said Molly Moran, Acting Assistant Attorney General for the Civil Rights Division. “The magnitude of this settlement makes clear that the Department of Justice will vigorously pursue violations of the Fair Housing Act.”
“The freedom of every family to live where they wish, without regard to their race or if they have kids, is basic to who we are in this country,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio. “When landlords deny that basic right, there will be consequences. We will continue to work hard to ensure that this fundamental right is protected in Ohio and across the nation.”
The settlement also requires that the defendants hire an independent management company to manage all of their rental properties, receive training on the requirements of the Fair Housing Act and report to the department for a period of three years on their compliance with the settlement. The settlement also requires the defendants to hire a third party to periodically test their properties to ensure compliance with the Fair Housing Act.
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.
Manager Sentenced to 72 Months in Prison in Loan Modification Fraud Scheme CaseRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, announce that Robert Bacon, 35, of West Newbury, Massachusetts, was sentenced by U.S. District Judge Kenneth Marra to 72 months in prison, to be followed by three years of supervised release and payment of restitution in an amount to be determined. Bacon previously pled guilty to charges of conspiracy to commit mail fraud and wire fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1349 and 1341.
Eight of ten defendants charged in this case have pled guilty to the charges, which involved a scheme to bilk thousands of homeowners who were struggling to make their mortgage payments. Defendants Jason Vitulano and Jeffrey Taylor are currently set for trial starting on November 10, 2014.
According to the indictment and other documents filed in the case, between September 2008 and August 2009, the defendants operated boiler rooms that collected advance fees from distressed homeowners purportedly in exchange for obtaining loan modifications for the homeowners which were, with few exceptions, never provided.
The other defendants who have previously been sentenced include the following, with their respective sentences:
- Peter Brown, 27, of Sound Beach, NY, was sentenced to 33 months in prison and two years of supervised release;
- Ajay Thuraisingham, 27, of Ontario, Canada, was sentenced to 54 months in prison and three years of supervised release;
- Christopher Duharte, 36, of Coconut Creek, was sentenced to 30 months in prison and three of years supervised release;
- Gregory Small, 29, of Boca Raton, was sentenced to 30 months in prison and two years of supervised release;
- Arthur Fogarty, 57, of Hollywood, was sentenced to 21 months in prison and two years of supervised release.
Co-defendants Neil Sack, 40, of Ft. Lauderdale, and Brian Fleuridor, 30, of Delray Beach, are each scheduled for sentencing on September 26, 2014, at 9:00 a.m. and 9:30 a.m., respectively.
The indictment alleges that Jason Vitulano was the organizer and operator of FHA All Day.com, Inc. and two other companies, Housing Assistance Law Center, Inc. and Safety Financial Corp., which operated the boiler rooms in Boca Raton and later in Deerfield Beach. According to the indictment and the factual proffers submitted in support of the guilty pleas, Robert Bacon was an operations manager who wrote and edited sales scripts, while the other eight defendants served as team managers of four to eight telemarketers who made thousands of phone calls to homeowners behind on their mortgage payments.
As alleged in the indictment, the defendants made false statements to the homeowners including telling homeowners they had already been approved or pre-approved for a loan modification that would save the homeowner a specific amount off their mortgage payment, reducing the interest rate and often the principal balance on the mortgage loan. The defendants, according to the indictment, routinely told customers that they had been approved by an “underwriter” and that they had a team of “expert attorneys” who would finalize the loan modifications.
The indictment further alleges that the defendants targeted homeowners across the country who were facing foreclosure, falsely telling them that the company would stop the foreclosure process and that homeowners could stop making mortgage payments while they waited for the company to finalize their loan modifications. FHA All Day, as alleged in the indictment, moved its offices and changed the corporate name several times to avoid law enforcement scrutiny and to hamper consumer complaints. Through the use of these and other false representations, the defendants, according to the indictment, induced over 2,000 distressed homeowners to pay up front fees totaling more than seven million dollars to the defendants.
Mr. Ferrer commended the investigative efforts of USSS and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
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.
Louisiana Psychiatrist Sentenced to Serve More Than Seven Years in Prison for His Role in $258 Million Medicare Fraud SchemeRead the Press Release
A Louisiana psychiatrist was sentenced in federal court in Baton Rouge, Louisiana, today to serve 86 months in prison for his role in a $258.5 million Medicare fraud scheme involving partial hospitalization psychiatric services. He was further ordered to pay $43.5 million in restitution and to forfeit all proceeds from the fraudulent scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney J. Walter Green of the Middle District of Louisiana, Special Agent in Charge Mike Fields of the Dallas Region of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG), Special Agent in Charge Michael Anderson of the FBI’s New Orleans Division and Louisiana State Attorney General James D. “Buddy” Caldwell made the announcement. Chief U.S. District Court Judge Brian A. Jackson of the Middle District of Louisiana imposed the sentence.
According to documents filed in the case, Zahid Imran, M.D., 56, of Baton Rouge, served as the medical director of Shifa Community Mental Health Center of Baton Rouge, and co-owned Serenity Center of Baton Rouge and Shifa Community Mental Health Center of Texas. As part of the scheme, Imran admitted mentally ill patients to the facilities, some of whom were inappropriate for partial hospitalization, and then re-certified the patients’ appropriateness for the program in an effort to continue to bill Medicare for services. To support the fraudulent Medicare billing, Imran and others falsified patient treatment records to reflect services on dates when no such services were provided. Imran pleaded guilty on May 13, 2014, to conspiracy to commit health care fraud.
Law enforcement’s 2011 investigation into the three community mental health centers has resulted in 17 convictions of individuals employed by the facilities, including therapists, marketers, administrators, owners and the medical director. The companies billed Medicare for partial hospitalization program services for the mentally ill that were unnecessary or never provided over a period of approximately seven years. The companies, collectively, submitted more than $258 million in claims to Medicare during this period. Medicare paid approximately $43.5 million on those claims.
The case is being investigated by HHS-OIG, the FBI and the Medicaid Fraud Control Unit of the Louisiana Attorney General’s Office, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Louisiana. The case is being prosecuted by Trial Attorneys Abigail Taylor and Dustin M. Davis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shubhra Shivpuri of the Middle District of Louisiana.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov .Lincoln and Council Bluffs Women Sentenced for Conspiracy to Commit Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that Tempest Amerson, 24, of Lincoln, Nebraska, and Rosland Starks, 45, of Council Bluffs, Iowa, were sentenced on August 21, in Lincoln, Nebraska, by United States District Judge John M. Gerrard, for conspiracy to commit wire fraud. Amerson received a sentence of 4 months in prison, and Starks received a sentence of 20 months in prison for their roles in the conspiracy. After their release from prison, each will be required to serve a 3 year term of supervised release, and to pay restitution in the amount of $13,671.
The conspiracy which led to the convictions of Amerson and Starks stems from their participation in a scheme which defrauded victims beginning on or about May 2011, and continuing through at least November 2013. As a part of the scheme, co-conspirators would contact elderly individuals in multiple states by phone, and convince the victims to wire money to another member of the conspiracy. Amerson and Starks would receive the wired monies or transfer the monies to another member of the conspiracy after keeping a portion for themselves. To convince the victim to wire money, the caller would purport to be a family relative, or person acting on a relative’s behalf, who needed money immediately due to fabricated emergencies such as motor vehicle accidents or arrests.
This case was investigated by Homeland Security Investigations, United States Department of Homeland Security.
Leader of Cocaine Trafficking Organization Pleads Guilty to Federal ChargeRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – The leader of a large drug trafficking organization was convicted in Federal court and now faces a lengthy prison sentence.
United States Attorney William J. Ihlenfeld, II, announced that Cedric Malachi Jones a/k/a “BG,” age 33, of South Ozone Park, New York, and formerly of Palm Coast, Florida, entered a plea of guilty to “Possession with Intent to Distribute Cocaine.” At the request of the government Jones remains in custody pending sentencing, at which time he will face up to 20 years in prison.
JONES was the leader of a group that caused controlled substances to be transported from other parts of the country to Keyser, West Virginia, for redistribution. The case was investigated by the Potomac Highlands Drug & Violent Crime Task Force, which consists of officers from the Federal Bureau of Investigation and the West Virginia State Police - Bureau of Criminal Investigations.
This prosecution of this case is being handled by Assistant United States Attorney Jarod J. Douglas. It was investigated by the Potomac Highlands Drug & Violent Crime Task Force, which consists of officers from the Federal Bureau of Investigation and the West Virginia State Police - Bureau of Criminal Investigations.
In other matters before U.S. Magistrate Judge Robert W. Trumble, Adrian Nicholas Sanchez a/k/a “ACE,” age 30, of Cumberland, Maryland and Christopher Lee Redman, age 30, entered pleas of guilty to “Conspiracy to Distribute Cocaine.” Sanchez and Redman will forfeit $5,661 as well as pay a $90,000 money judgment. Sanchez and Redman are in custody pending sentencing and face up to 20 years in prison.Ebony Ishia Haynes Jack, age 33, of South Ozone Park, New York, formerly of Palm Coast, Florida, entered a plea of guilty to “Money Laundering Conspiracy.” Jack is free on bond and faces up to 20 years in prison.
James Willard Johnson, age 39, of Martinsburg, entered a plea of guilty to “Distribution of Crack Cocaine.” Johnson is in custody pending sentencing and faces up to 20 years in prison.
Navarre Sowell, age 38, of Hagerstown, Maryland, entered a plea of guilty to “Illegal use of a Telephone to Facilitate the Distribution of Crack Cocaine.” Sowell, who is in custody pending sentencing, faces up to 8 years in prison.
Shaye Christopher Donald Cole, age 27, of Shenandoah Junction, West Virginia, entered a plea of guilty to “Felon in Possession of a Firearm.” Cole was previously convicted of a felony in the Circuit Court of Frederick County, Virginia. Cole is free on bond pending sentencing and faces up to 10 years in prison.
Shaquille Montrel Robinson, age 21, of Charles Town, West Virginia, entered a plea of guilty to “Felon in Possession of a Firearm.” Robinson has prior convictions for “Wanton Endangerment” and “Unlawful Assault” in the Circuit Court of Jefferson County, West Virginia. Robinson is in custody pending sentencing and faces up to 10 years in prison. Robinson was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson County Sheriff’s Office and the Ranson Police Department.Kissimmee Man Sentenced to 30 Months in Federal Prison for over $1 Million in Tax EvasionRead the Press Release
Orlando, Florida – Senior U.S. District Judge Gregory A. Presnell today sentenced Walter Medlin (71, Kissimmee) to 30 months in federal prison for tax evasion. He was also ordered to serve a one year term of supervision, upon his release from prison. Medlin pleaded guilty on February 4, 2014.
According to court documents, Medlin received more than $7.5 million in income from the sale of interest in a landfill. Rather than report that income on his tax return, Medlin attempted to evade his taxes by using several limited partnerships to conduct transactions for his benefit. As the result of a prior ruling of the United States Tax Court, Medlin knew that he could not use nominees, such as the limited partnerships, to evade his taxes in this manner. To further conceal his tax evasion, Medlin failed to file a tax return, but submitted requests for extensions in which he falsely represented that he did not owe any taxes. The total amount of taxes that Medlin attempted to evade was over $1.1 million. As part of his plea agreement, Medlin has agreed to file his tax return and pay his taxes, penalties, and interest.
This case was investigated by the Internal Revenue Service - Criminal Investigation Division. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Kern County Man Sentenced for Conspiracy to Distribute 17 Pounds of MethamphetamineRead the Press Release
FRESNO, Calif. —Jorge Guevara, 35, of Arvin, was sentenced today by United States District Judge Lawrence J. O'Neill to six years and eight months in prison for a conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.
According to court documents, Guevara attempted to sell 17 pounds of methamphetamine to an undercover Kern County Sheriff’s Deputy. On June 26, 2013, Guevara and co-defendant Jerardo Villareal met with the undercover deputy in the parking lot of a fast food restaurant in Bakersfield to complete the sale of drugs. Upon their arrest, 17 pounds of methamphetamine was found hidden in the vehicle that the defendants were driving.
On May 30, 2014, Villareal pleaded guilty to the conspiracy to distribute and possess methamphetamine with the intent to distribute. He is scheduled to be sentenced on September 22, 2014. He faces a sentence of five to 40 years in prison and up to a $5 million 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.
This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Kern County Sheriff’s Department and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Kankakee County Man Pleads Guilty to Three Counts of Distribution of Crack CocaineRead the Press Release
Urbana, Ill. Sentencing has been scheduled for Dec. 15, 2014, for a St. Anne, Ill., man, Edward Dorsey Sr., 42, who entered open pleas of guilty on Friday to three counts of distributing crack cocaine in Kankakee County. Dorsey appeared on Aug. 22, before U.S. Magistrate Judge David G. Bernthal. The indictment, returned by a grand jury in May 2014, charged Dorsey with distribution of more than 28 grams (approximately one ounce) of crack cocaine on two occasions, Nov. 21 and Dec. 18, 2013, and with distribution of crack cocaine on Dec. 10, 2013.
A petition to revoke Dorsey’s federal supervised release remains pending. Dorsey was serving a three-year term of supervised release for a prior federal drug crime at the time he admitted to committing the crimes as charged in the indictment.
The petition to revoke Dorsey’s supervised release was filed by the U.S. Probation Office for the Central District of Illinois based on the drug trafficking charges, as well as allegations of aggravated unlawful restraint and battery involving a firearm in violation of state law. According to the petition to revoke supervised release, Dorsey allegedly kidnapped and battered a man at a Citgo Gas Station in Pembroke, Ill., on Jan. 9, 2014. The petition further alleges that Dorsey grabbed the man by the shirt, forced him into a car, pointed a gun at him, and punched and choked him. The petition alleges that Dorsey drove around with the man until Dorsey found a stolen television, at which point, he let the man go.
At sentencing, for the drug offenses, Dorsey faces a mandatory minimum sentence of 10 years to life in prison under the revised penalties contained in the Fair Sentencing Act. If Dorsey’s supervised release is revoked, he could be sentenced to up to three years in prison in addition to his sentence for the drug trafficking charges. Dorsey remains detained in the custody of the U.S. Marshals Service.
The charges are the result of an investigation by the Kankakee Area Project Safe Neighborhoods Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kankakee Police Department, and the Kankakee County Major Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
Justice Department Announces Successful Resolution of Consent Judgment Involving Detroit Police DepartmentRead the Press Release
The Justice Department today announced the U.S. District Court for the Eastern District of Michigan’s termination of the consent judgment relating to the Detroit Police Department’s (DPD) use of force and arrest and witness detention practices. The Justice Department and the city of Detroit jointly sought the termination of the consent judgment and approval of a Transition Agreement maintaining federal oversight of the DPD for an additional 18 months. The transition agreement starts a new chapter of reform and accountability for the DPD as it works in collaboration with the Justice Department to better ensure constitutional policing, promote community confidence, and improve public safety in the city of Detroit. The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Michigan have worked cooperatively throughout the duration of this matter.
The consent judgment was entered in 2003 and required comprehensive reforms of the DPD to remedy its patterns and practices of use of excessive force and unlawful detentions and arrests identified by the Justice Department following a two-and-a-half-year investigation. A second, concurrent consent judgment was also entered addressing unconstitutional conditions of confinement in the DPD’s holding cells. A court-appointed monitor was selected to evaluate the city’s compliance with both judgments.
Through substantial compliance with the consent judgment, the DPD has significantly reformed its use of force and witness detention practices. The DPD has effectively eliminated the unconstitutional practices that made the consent judgment necessary through comprehensive policy revision; enhanced training, supervision and investigative practices; and improved accountability systems, including the development of a comprehensive risk management system. The effects of these changes are evident in the reduction of the DPD’s officer-involved shootings and other uses of force, and the abolition of its past practice of detaining witnesses during investigations of serious crimes.
"Today's transition agreement with the Detroit Police Department is yet another example that law enforcement agencies can change to better serve their communities when they commit to meaningful reform," said Attorney General Eric Holder. "The Department of Justice has entered into agreements with police departments large and small across the country over the past five years and I applaud Detroit for setting an example by showing that these agreements can create the constitutional and community policing models that all communities deserve."
“The court’s order today to terminate the consent judgment and move to a transition agreement is an important step, but does not end the Department of Justice’s oversight of the Detroit Police Department,” said U.S. Attorney Barbara McQuade for the Eastern District of Michigan. “We are pleased that the Detroit Police Department has made fundamental changes in its practices and procedures, but we will continue to monitor for an additional 18 months to ensure that these changes are sustained and that the people of Detroit receive the constitutional policing that they deserve.”
Although the DPD is greatly improved, and the city had substantially complied with the requirements of the consent judgment, the Justice Department and the city acknowledged that additional work remains to be done to ensure that the consent judgment’s reforms are fully realized and maintained. The transition agreement approved today by the court provides an opportunity for the DPD to continue that work and demonstrate to the Justice Department and the people of Detroit that it can satisfy its mission of promoting public safety in a manner that is fair, just and constitutional.
The other concurrent consent judgment relating to the conditions of confinement in DPD holding cells was terminated earlier this year after the city, which had fully complied with that judgment’s terms, completed the transfer of custodial responsibility for all DPD detainees to the Michigan Department of Corrections.
Under the 1994 Violent Crime Control and Law Enforcement Act, the Justice Department has the authority to file civil suits against law enforcement agencies that engage in a pattern of misconduct. The department also has the authority to file suit against law enforcement agencies that receive federal funds and engage in a pattern of discrimination. For more information on the Justice Department’s Civil Rights Division or the Detroit consent judgments, visit www.justice.gov/crt or call the U.S. Attorney’s Office Civil Rights hotline at (313) 226-9151. Community members may also email the Civil Rights Division at [email protected] .
Jackson Woman Sentenced for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Ladonna Cooper, age 30, of Jackson, was sentenced to 20 months for conspiracy to defraud the United States, U.S. Attorney Gregory K. Davis announced today.
Cooper, a former employee of the Mississippi Department of Corrections, previously pled guilty to stealing personal identifying information, including names and social security numbers, from the Central Mississippi Correctional Facility located in Rankin County. The information was then used by others to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. Those refunds were then electronically deposited into various bank accounts in Mississippi belonging to Cooper’s co-conspirators. Following her prison sentence, Cooper will be on supervised release for 3 years during which she must pay restitution to the United States Government in the amount of $222,137.13.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Jackson Woman Sentenced for Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Pamlia Johnson, age 41, of Jackson, was sentenced to 14 months for conspiracy to defraud the United States, U.S. Attorney Gregory K. Davis announced today.
Johnson a former employee of the University of Mississippi Medical Center, previously pled guilty to stealing patient’s personal identifying information, including names and social security numbers, from the Jackson hospital. The information was then used by others to file false tax returns with the Internal Revenue Service. The tax returns claimed that the tax payers were owed a refund. Those refunds were then electronically deposited into various bank accounts in Mississippi belonging to Johnson’s co-conspirators. Following her prison sentence, Johnson will be on supervised release for 3 years during which she must pay restitution to the United States Government in the amount of $82,040.00.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Gila River Man Sentenced to over 15 YearsRead the Press Release
PHOENIX – On Aug. 25, 2014, Curtis Ray Manuel, 23, of Bapchule, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge G. Murray Snowto 187 months in prison to be followed by lifetime supervised release. Manuel pleaded guilty on June 11, 2014, to abusive sexual contact of a minor
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, 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.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-14-00065-PHX-GMS
RELEASE NUMBER: 2014-049_ManuelGeorgia Man Sentenced for Tax Fraud and Identity TheftRead the Press Release
ATLANTA –Mauricio Warner has been sentenced to 20 years in prison for using the identities of thousands of unsuspecting individuals to file federal tax returns claiming over $5 million in bogus refunds.
“Lengthy prison sentences wait for the growing number of criminals who use other people’s personal information to file phony tax returns,” said United States Attorney Sally Quillian Yates. “Mr. Warner deceived over 5,000 victims to get his hands on their names and Social Security numbers, and then used their information to steal over $5 million in fraudulent tax refunds. He will now spend years behind bars and have to pay back his ill-gotten gains. As this sentence shows, tax fraud and identity theft are crimes that do not pay.”
“IRS Criminal Investigation will remain proactive in the investigation of individuals who engage in stealing the identities of innocent people,” said Veronica F. Hyman-Pillot, Special Agent in Charge, Internal Revenue Service-Criminal Investigation. “We will continue to utilize every tool available to investigate those who victimize members of our community and innocent taxpayers for their own personal gain. As the defendant in this case has learned, stealing from the American people will not be tolerated.”
According to United States Attorney Yates, the charges and other information presented in court: From approximately January 2011 to April 2012, Warner filed over 5,000 false tax returns using the names and Social Security numbers of unsuspecting victims. Victims were told they could submit an application for an “Obama stimulus payment” or “Free Government Money” by providing their names and Social Security numbers. In addition to word-of-mouth marketing, Warner used toll-free telephone numbers to collect victims’ personal identifying information. He then used the victims’ names and Social Security numbers to claim millions of dollars in fraudulent refunds. On the returns, Warner claimed false income amounts and student credits to generate the bogus tax refunds, and directed the IRS to pay the refund amounts to bank accounts he controlled. The victims did not know tax returns were being filed in their names.
Warner, 38, of Smyrna, Ga., was sentenced by United States District Judge Charles A. Pannell, Jr. to 20 years in federal prison and three years of supervised release, and ordered to pay $5,041,869 in restitution. The Court also ordered the forfeiture of seven bank accounts controlled by Warner that contain $4,185,455.31 in funds derived from or involved in this scheme. On April 18, 2014, a jury convicted Warner of 16 counts of wire fraud, 16 counts of aggravated identity theft, 16 counts of filing false claims, and two counts of money laundering. Numerous victims testified at trial. Warner was taken into custody after the verdict.
This case was investigated by Special Agents of the Internal Revenue Service– Criminal Investigation. If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorneys Stephen H. McClain and Thomas J. Krepp prosecuted the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.
Fresno Woman Sentenced to Prison for Stealing More Than $113,000 in Social Security BenefitsRead the Press Release
\FRESNO, Calif. — Ernedina Madrigal, 78, of Fresno, aka Mary Louise Madrigal, was sentenced today by Senior U.S. District Judge Anthony W. Ishii to 10 months in prison, to be followed by three years of supervised release, for stealing money from the Social Security Administration, United States Attorney Benjamin B. Wagner announced. Madrigal also was ordered to pay $113,435 in restitution to the Social Security Administration.
According to court documents, in September 1996, Madrigal, using a fraudulently obtained social security number in her sister’s name, applied for and began receiving social security benefits. At that time, Madrigal already had applied for and was receiving social security benefits under her own name and legitimate social security number. Over a 16-year period, Madrigal unlawfully received approximately $113,000 in social security benefits under the illicit social security number.
This case was the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant U.S. Attorneys Christopher Baker and Patrick Delahunty prosecuted the case.
Franklin County Resident Sentenced on Methamphetamine OffenseRead the Press Release
Follow @SDILNewsOn August 21, 2014, Samantha J. Plumlee, 28, of Christopher, Ill., was sentenced for her involvement in a methamphetamine conspiracy, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Plumlee, who had previously pled guilty to the one-count indictment charging conspiracy to manufacture methamphetamine, was sentenced to 70 months in federal prison, 3 years of supervised release, and fined $250. The offense occurred between 2012 and June 2013, in Perry, Jackson, Randolph, Franklin, and Williamson Counties. Evidence at the plea and sentencing hearings established that Richey obtained over 43 grams of pseudoephedrine to be used in the manufacture of methamphetamine. Two co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Perry County Drug Task Force, Illinois State Police/Southern Illinois Drug Task Force, Murphysboro Police Department, DuQuoin Police Department, Pinckneyville Police Department, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Four Lincoln County Family Members Plead Guilty to Oxycodone DistributionRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced today that four members of a Lincoln County family entered guilty pleas today in federal court in Charleston. Larry Wayne Lawson, 54, of West Hamlin, wife, Tina Taylor Lawson, 37, son, Jason Wayne Lawson, 30, and son’s fiancé, Tia Estep, 28, of Seymour, Tennessee all entered guilty pleas admitting their involvement in distributing oxycodone in August of 2013.
Larry Lawson and Tina Taylor Lawson admitted that on August 13, 2013, they sold 5 oxycodone pills to a confidential informant (CI) working with law enforcement. The CI sent a text message to the Lawson’s cell phone asking whether the couple had any pills for sale. Tina Lawson responded via text message, that they could supply the pills and directed the CI to meet them at their home on Bear Creek in West Hamlin, West Virginia. When the CI arrived at the Lawson’s home, Larry Lawson sold him 5 oxycodone 30 mg pills for $200.00.
The following day, on August 14, 2013, the CI phoned Larry Lawson and arranged to purchase additional oxycodone pills. Larry Lawson directed the CI to come back to his Bear Creek residence where Jason Lawson and Tia Estep sold the CI 5 oxycodone 30 mg pills for $200.00.
All four defendants face up to 20 years imprisonment when they are sentenced on November 20, 2014, before United States District Court Judge John T. Copenhaver, Jr.
This case was investigated by the Huntington Violent Crimes and Drug Task Force and the West Virginia State Police.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin.
Former State Treasurer of the Civilian Technicians Association Sentenced to Federal PrisonRead the Press Release
Memphis, TN – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced today that Don McMahon, age 40, of Cordova, Tennessee, was sentenced on August 22, 2014 by U.S. District Judge John T. Fowlkes, Jr. to serve 30 days in federal prison followed by three years of supervised release with one year of home detention and electronic monitoring. McMahon was also ordered to pay restitution in the amount of $1,928.40 to the Association of Civilian Technicians and $10,000.00 in restitution to Zurich Surety, the Association’s insurance company.
On May 16, 2014, McMahon pled guilty to one count of an eight-count indictment charging him with wire fraud. McMahon is the former state treasurer of the Association of Civilian Technicians – State of Tennessee Council, a labor organization that represents approximately 130 members employed by the Tennessee Air National Guard at base chapters in Memphis, Nashville, Chattanooga, and Knoxville.
Between June 2009 and October 2011, while serving as the Association’s treasurer, McMahon embezzled approximately $11,868.40 in Association funds by using the Association’s debit card to withdraw cash from ATMs and to make purchases for his own personal use. He also wrote approximately $2,500 in checks to himself that were drawn on the Association’s account and falsified financial documents to hide his embezzlement.
This investigation was conducted by the Office of Labor-Management Standards. Assistant U.S. Attorney Leetra J. Harris represented the government.Former Sandia Corporation Scientist Pleads Guilty to Taking Government Property to ChinaRead the Press Release
ALBUQUERQUE – Jianyu Huang, a scientist formerly employed by Sandia Corporation (Sandia) at Sandia National Laboratories (SNL), pleaded guilty this afternoon to making a false statement and unlawfully transporting converted government property in interstate and foreign commerce. The guilty plea was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division.
Huang, 46, a naturalized U.S. citizen from the People’s Republic of China who resides in Albuquerque, N.M., was arrested in June 2012, on a six-count indictment charging him with misusing U.S. government resources and equipment to conduct research for Chinese research institutions and with falsely stating that he did not intend to take U.S. government equipment with him on a trip to China. The indictment subsequently was superseded to add an interstate transportation of converted property charge and a theft of government property charge. Huang was employed by Sandia until his employment was terminated in late April 2012.
SNL is a government-owned research facility operated by Sandia Corporation for the U.S. Department of Energy (DOE) National Nuclear Security Administration (NNSA) that is responsible for ensuring the safety of the nation’s nuclear stockpile; enhancing the security of energy and other critical resources; reducing the proliferation of weapons of mass destruction; addressing threats to national security; and protecting the nation against terrorism. The Center for Integrated Nanotechnologies (CiNT) is a DOE user facility and science research center devoted to establishing scientific principles that govern the design, performance, and integration of materials on the atomic and molecular scale, located at SNL.
In light of the sensitivity of SNL’s work, all Sandia employees are required to report to the Sandia Office of Counterintelligence (SOC) any substantive relationship with foreign nationals, including associations that involve meeting and sharing work-related information. Sandia employees also are required to submit to interviews with SOC before international travel on official business, and are prohibited from bringing government-owned equipment on international travel without prior approval.
Huang was employed by Sandia at CiNT, where he worked in an unclassified open science facility without access to classified national security information. As a Sandia employee, Huang was prohibited from bringing government-owned equipment on international travel without prior approval.
Counts 1 through 5 of the second superseding indictment charged Huang with federal program fraud and alleged that between Jan. 2009 and Jan. 2012, Huang unlawfully and without authority used DOE equipment, materials and property to conduct research for businesses and universities in the People’s Republic of China. Count 6 charged Huang with making a false statement charge to a federal officer and alleged that, in June 2011, Huang falsely represented to a counterintelligence officer that he would not take any U.S. government electronic equipment with him on an upcoming trip to the People’s Republic of China. The statement was false because Huang knew that he intended to take a U.S. government computer and hard-drive to the People’s Republic of China on that trip, and did in fact take that equipment with him. Count 7 charged Huang with the interstate transportation of converted property charge and alleged that between June 30, 2011 and July 18, 2011, Huang unlawfully transported a DOE-owned laptop computer and computer-related media in interstate and foreign commerce. Count 8 charged Huang with an embezzlement charge and alleged that between April 25, 2012 and June 2, 2012, Huang embezzled electronic files and documents, including research proposals, belonging to DOE that came into his possession by virtue of his employment with SNL.
During his plea hearing this afternoon, Huang pled guilty to Counts 6 and 7 of the second superseding indictment. In his plea agreement, Huang admitted taking a trip to China in July 2011, for the purpose of attending and making a presentation at a research conference. Huang acknowledged that in seeking and obtaining Sandia’s permission to participate in the conference, he represented that he would not take any DOE-owned equipment with him. Huang also admitted deliberately lying to a counterintelligence office when he made the representation because he intended to take his DOE-owned laptop on the trip.
Huang admitted taking a DOE-owned laptop computer with him when he traveled to China on June 30 and July 1, 2011, even though he knew that he did not have permission to do so. In so doing, Huang unlawfully converted the laptop computer to his own use. According to Huang’s plea agreement, U.S. Customs and Border Protection agents seized the DOE-owned laptop from Huang’s baggage when he returned to the United States on July 18, 2011, after Huang admitted that he did not have permission to take the laptop computer out of the country.
Under the terms of the plea agreement, Huang will be sentenced to a year and a day in federal prison followed by a term of supervised release to be determined by the court. Huang’s sentencing hearing has yet to be scheduled.
The case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Assistant U.S. Attorney Jonathon M. Gerson.
Former Little Rock Tax Preparer Pleads Guilty to Assisting in the Preparation of Fraudulent Tax Returns Admits to over $1 Million Loss to GovernmentRead the Press Release
Little Rock – 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 Christopher T. Craig, 47, formerly of Little Rock, now of Atlanta, Georgia, waived indictment and pled guilty to an Information charging him with two counts of aiding and assisting in the preparation of fraudulent income tax returns.
IRS Criminal Investigation Special Agent in Charge Christopher A. Henry said, "While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients. The defendant in this investigation wreaked havoc on the integrity of our tax system in a very short period of time. Taxpayers should be selective in choosing a return preparer, and have confidence knowing that person will prepare accurate tax returns and safeguard their financial information."
Craig admitted that on April 30, 2010, and March 1, 2012, he prepared false employment tax returns, Forms 941, on behalf of other taxpayers. The returns were false and fraudulent, in that, unknown to the taxpayers, Craig filed the returns in a way that reduced the amount of Federal withholdings the taxpayers owed to the IRS. Craig collected payments from the taxpayers for the correct amount of employment taxes, but diverted to himself the difference between the correct amount owed and the amount paid to the IRS. For these two returns, Craig diverted to himself a total of $43,280.50; employment tax payments he collected from the taxpayers which he should have paid over to the IRS.
Craig admitted that the total loss to the government was $1,092,177.79 as a result of his fraudulent conduct
Craig faces a maximum penalty of not more than three years in prison on each of the two counts and/or a fine of up to $500,000. The sentencing date will be set by the court.
This investigation was conducted by IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Patricia S. Harris.
Former Leader of Hindu Temple of Georgia Convicted on Fraud and Obstruction ChargesRead the Press Release
ATLANTA – Annamalai Annamalai, a/k/a Dr. Commander Selvam, a/k/a Swamiji Sri Selvam Siddhar, the former leader of the now defunct Hindu Temple of Georgia, was convicted of 34 felony counts following a two-week jury trial.
“This defendant traded on his perceived religious authority and spiritual powers to cheat the faithful who believed in him,” said United States Attorney Sally Quillian Yates. “The jury saw through his deception, and he is being held accountable for his fraud.”
“Annamalai Annamalai clearly took advantage of his religious standing in the community as well as the individuals who respected and revered him” stated Veronica F. Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. He used deceit and fraud, to circumvent the bankruptcy courts and to collect money for his own personal benefit. Today’s verdict should send a strong message that this will not be tolerated.”
According to United States Attorney Yates, the indictment, and other information presented in court: Annamalai generated income through the Hindu Temple of Georgia (“the Hindu Temple”) by charging fees to his followers in exchange for providing spiritual or related services. In a typical transaction, a follower agreed to purchase a particular service for a communicated price, and provided a credit card number by telephone to guarantee payment. Annamalai caused the followers’ credit card numbers to be charged on multiple occasions, in excess of the agreed amount and without authorization. If the followers disputed the charges with their respective credit card companies, Annamalai submitted false documentation to the credit card companies in support of the unauthorized charges, which formed the basis for his conviction on bank fraud charges.
The income generated by the Hindu Temple through these credit card charges was used to fund the personal lifestyle of Annamalai and his family, who owned or controlled numerous homes and real properties, luxury vehicles, and foreign bank accounts in India. Annamalai was convicted of willfully filing a false tax return for the 2007 year, for failing to disclose his financial interest in foreign bank accounts held in India.
Annamalai was also convicted of bankruptcy fraud offenses in connection with the Hindu Temple’s petition for bankruptcy protection in August 2009. Annamalai concealed assets from creditors and others by diverting credit card receipts and donations intended for the Hindu Temple to a bank account in the name of a different entity. Annamalai was also convicted of money laundering for using proceeds from the bankruptcy fraud to pay mortgages on properties that he owned, and payments to himself.
Annamalai was also convicted on three counts of obstruction and false statements in connection with the grand jury investigation and the bankruptcy proceeding. Annamalai transmitted a fraudulent email to an IRS Special Agent, which was falsely made to appear as if the email had been written and authored by a witness of the criminal investigation. Annamalai submitted a false affidavit to the grand jury, and a false affidavit to the Bankruptcy Court in connection with the Hindu Temple’s bankruptcy proceeding.
Finally, Annamalai was convicted of conspiring with his spouse and co-defendant, Parvathi Sivanadiyan, and others to conceal the arrest of co-defendant Kumar Chinnathambi. Chinnathambi was later arrested and pled guilty to conspiracy to commit bankruptcy fraud on July 17, 2014. He is scheduled to be sentenced on October 24, 2014, at 10 a.m. before District Court Judge Timothy C. Batten, Sr. Sivanadiyan is awaiting trial.
Annamalai was convicted of bank fraud offenses, filing a false tax return, bankruptcy fraud offenses, money laundering, obstruction, false statement offenses, and conspiring to conceal a person from arrest. He is scheduled to be sentenced on November 13, 2014, at 10 a.m. before District Court Judge Timothy C. Batten, Sr.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation, with valuable assistance from the Federal Bureau of Investigation.
Assistant United States Attorneys Steven D. Grimberg and Samir Kaushal are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Investment Company Executives Sentenced for Roles in $18 Million Ponzi SchemeRead the Press Release
The former Hanover Corporation chief financial officer and a former Hanover salesman were sentenced today to serve 60 months in prison and 70 months in prison respectively, and ordered to pay $14,454,999.19 in restitution, for their roles in an $18 million Ponzi scheme. Hanover’s former chief executive officer was previously sentenced to 14 years in prison and ordered to pay $14,784,983.75 in restitution in this case.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David Rivera of the Middle District of Tennessee, Special Agent in Charge Todd McCall of the FBI’s Memphis Division and Special Agent in Charge Christopher Henry of the Internal Revenue Service-Criminal Investigation (IRS-CI) in Nashville made the announcement today after the sentences were handed down by U.S. District Judge Todd J. Campbell in the Middle District of Tennessee.
According to court documents, Daryl Bornstein, 55, of Kinston Springs, Tennessee, a former Hanover salesman, and Robert Haley, 55, of Lebanon, Tennessee, the former Hanover CFO, colluded with Hanover CEO, Terry Kretz, to steal $18 million of investors’ money in a Ponzi scheme. Specifically, Kretz and Bornstein solicited investors with the promise that the monies would be invested in stock options and startup companies. More than half of the money, however, was actually used to repay earlier investors, to pay Hanover’s salaries and overhead, and to benefit the defendants personally. Such personal benefits included golf memberships and $100,000 in cash for Bornstein. Kretz and Bornstein also issued Hanover promissory notes to reimburse individuals who had previously lost money investing in ventures recommended by Bornstein before he joined Hanover. In some cases, these former investors contributed new money to Hanover, therefore unwittingly paying off their old investment losses with their new investments.
Haley furthered the fraud by sending investors checks for purported “interest,” knowing that they were simply monies recently taken in from new investors. He also prepared a false balance sheet that overstated Hanover’s financial health to be shown to investors.
The case was investigated by the FBI, IRS-CI, Tennessee Bureau of Investigation, and Tennessee Department of Commerce and Insurance. The case is being prosecuted by Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee.Former Executive at First Command Financial Services Pleads GuiltyRead the Press Release
FORT WORTH, Texas — A former executive at First Command Financial Services, an investment advisor and financial planning firm located in Fort Worth, Texas, pleaded guilty this morning before U.S. District Judge Reed C. O’Connor to a felony offense stemming from a fraud scheme she ran while employed there, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Redonda Russell, 66, of Fort Worth, pleaded guilty to a felony Information charging one count of wire fraud. She faces a maximum statutory penalty of 20 years in federal prison, a $250,000 fine, and restitution. She will remain on bond pending sentencing, which is set for December 8, 2014.
Russell worked for First Command for 22 years, before leaving the company in the spring of 2013. She is a registered Investment Advisory Representative and Broker-Dealer Agent. She is able to buy and sell securities, and she is authorized to give investment advice to clients. She is a Chartered Financial Consultant (ChFC), a designation she earned by completing a comprehensive course of financial education, examinations, and practical experience. Through First Command’s client database, Russell had access to clients’ personal identifying information (PII), investment/insurance account numbers, and balances for the account holder and beneficiaries.
According to plea documents filed in the case, beginning on approximately April 3, 2012, and continuing through April 18, 2013, Russell obtained PII for at least 18 First Command clients, eight of whom were deceased. Russell admitted using that information to forge, or otherwise present claims as the account holder, beneficiary, or legal representative of the account holder/beneficiary, to First Command’s affiliated investment and insurance partners to liquidate the targeted accounts.
Russell admitted that part of her scheme was to steal funds from inactive clients’ accounts, thus making the fraud harder to detect. She also targeted accounts that were maintained by First Command’s business partners that were part of an industry-standard, paperless signature program that eliminated the need for the verifying entity to send additional substantiating paperwork to the receiver. After Russell altered ownership/control of the targeted customers’ accounts, Russell sent a policy cancellation/disbursement form and W-9 tax withholding form and instructed the affiliated partner to either liquidate or take a loan against the targeted accounts.
Funds were subsequently wired into one of Russell’s 12 bank accounts or, if checks were mailed, Russell would endorse and deposit them. Checks were endorsed by Russell, Russell signing as her husband, Russell signing as her daughter-in-law, or an amalgam of signatures she used to perpetuate the scheme usually having the surname “Russell.”
Russell’s scheme resulted in the liquidation of more than $316,000 from First Command’s clients’ accounts.
The FBI investigated the case; Assistant U.S. Attorney Nancy Larson is in charge of the prosecution.
Former East St. Louis Police Officer’s Prison Sentence UpheldRead the Press Release
Follow @SDILNewsA former East St. Louis police officer lost his bid to have his 30-month federal prison sentence overturned, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Ramon T. Carpenter, 42, was convicted of two federal charges for making false statements to federal law enforcement officers during their investigation of a civil rights complaint. Carpenter was prosecuted for false statement crimes but was sentenced according to the law applicable to civil rights violations.
Carpenter appealed his January 31, 2013, sentence because it was far in excess of the sentence called for by the United States Sentence Guidelines. The applicable sentencing guideline suggested that the district court should have imposed between 6-12 months imprisonment. However, the United States Attorney’s Office sought and obtained a more severe sentence because of Carpenter’s egregious conduct.
Evidence in the case established that in the early morning hours of May 8, 2012, that a female motorist was driving near the intersection of Louisiana Blvd. and 25th Street, in East St. Louis, Ill. when she encountered East St. Louis police officers Ramon Carpenter and Chris Parks. The driver was intoxicated and driving with open liquor at the time. The driver believed that she would be arrested by the officers for driving with no license, no insurance, and for driving while under the influence of alcohol (DUI). Instead of being arrested, the female alleged that she was driven to a secluded area in Jones Park, in East St. Louis, where she felt that she had to perform oral sex on the officer to avoid going to jail. When Carpenter was interviewed by federal agents he falsely denied being present in Jones Park during his shift and he also falsely denied receiving oral sex. An FBI investigation conclusively established that Carpenter had lied when agents located discarded napkins containing Carpenter’s semen.
Carpenter was fired from the East St. Louis police department on July 10, 2012, and was indicted by the federal grand jury on July 17, 2012.
The Seventh Circuit Court of Appeals ruled that the district court properly imposed the more serious sentence. The appellate court opinion noted that the factual disputes in the case were properly resolved by the judge who chose to believe the testimony of the victim “instead of the thrice-lying Carpenter and the complicit Parks.” The appellate court also validated the use of the more serious civil rights sentencing guidelines to the case, finding that implicit threats of arrest are a form of coercion that make sexual encounters nonconsensual.
US Attorney Wigginton said, “The appellate court decision is the final chapter to this sordid episode. The vast majority of law enforcement officers are good and decent public servants. However, this office will never hesitate to vigorously prosecute a corrupt officer when the evidence establishes a crime. This prosecution vindicated the dignity of a victim of sexual coercion and should serve to restore the public’s confidence in law enforcement.”
The investigation was conducted through the Metro East Public Corruption Task Force by agents from the Illinois State Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Steven D. Weinhoeft.
Five Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – Five people were recently sentenced to Federal prison according to United States Attorney William J. Ihlenfeld, II.
Darnell Leon Plaines, age 25, of Martinsburg, was sentenced to 37 months in prison and 3 years of supervised release for conspiracy to distribute more than 28 grams of crack cocaine from April to May 20, 2013, in the Northern District of West Virginia. The Court also ordered the forfeiture of $3,612 which constituted proceeds from the illegal activity. Plaines was remanded to the custody of the United States Marshal pending designation to prison.
William Melvin Greene a/k/a “Reef,” age 40, and Catrina Colleen Everhart, age 33, of Martinsburg, were each sentenced to 60 months in prison and 3 years of supervised release for conspiracy to distribute more than 28 grams of crack cocaine from April to August of 2013, in the Northern District of West Virginia. Greene was remanded to the custody of the United States Marshal pending designation to a Federal institution. Everhart, who is free on bond, will self-report to prison.
Calva Wellington Springette, age 31, of Martinsburg, was sentenced to 36 months in prison and 6 years of supervised release for the distribution of crack cocaine. Springette’s sentence was enhanced by the Court due to her possession of a stolen firearm. Springette, who is free on bond, will self-report to prison.
These cases were investigated by the Eastern Panhandle Drug & Violent Crime Task Force.
Coty Sharee Buracker, age 22, of Inwood, West Virginia, was sentenced to 24 months in prison and 20 years of supervised release for failure to register and update registration as a sex offender. Buracker was remanded to the custody of the United States Marshal and will soon be assigned to a Federal prison. This case was investigated by the United States Marshals Service and the West Virginia State Police.
Assistant United States Attorney Jarod J. Douglas handled each of these cases on behalf of the government. U.S. District Court Judge Gina M. Groh presided.Farmington Man Sentenced to Probation for Dumping Residential Septic Tank Waste onto Federal LandsRead the Press Release
ALBUQUERQUE –Alex Wiggins, 52, of Farmington, N.M., was sentenced this morning to a year of probation for his misdemeanor conviction on a depredation of government property charge. Wiggins also was ordered to perform 100 hours of community service.
Alex Wiggins and his brother Anthony Wiggins, 55, also a Farmington resident, were indicted in June 2013, and charged with conspiracy to depredate government property by dumping liquid waste pumped from residential septic tanks onto federal land in San Juan County, N.M., that was administered by the Bureau of Land Management (BLM). The indictment also charged the two men with three counts of depredation of government property for dumping residential septic tank waste onto federal lands on three separate occasions in March 2013. At the time of the crimes charged in the indictment, Anthony Wiggins was the primary operator of A-1 Septic, a residential septic tank waste disposal company in Farmington, and Alex Wiggins worked for his brother’s company.
The investigation of this case began in March 2013, after a private citizen reported seeing a black sludge-like substance on a remote rural road in San Juan County to the San Juan County Sheriff’s Office (SJCSO). After it was determined that the property at which the substance was dumped was federal land, the BLM partnered with the SJCSO to conduct the investigation. During the investigation, covert cameras photographed a septic vacuum pumper truck and the defendants as they dumped residential septic tank waste onto BLM administered federal lands on March 6 and 9, 2013.
Alex Wiggins entered a guilty plea on May 27, 2014, to a misdemeanor information charging him with depredation of government property. In his plea agreement, Alex Wiggins admitted that, while working for his brother’s company, he and his brother dumped several truckloads of raw sewage onto land owned and administered by BLM for the purpose of disposing of the waste. He acknowledged knowing that this was not a proper way to dispose of the septic waste and that it was in fact illegal.
Anthony Wiggins entered a guilty plea in Oct. 2013, to Count 3 of the indictment which charged him with the felony offense of depredation of government property. He was sentenced on May 30, 2014, to a year of probation and was ordered to pay $2,193.13 in restitution to the BLM to cover the cost for cleaning up the septic waste.
This case was investigated by the BLM and the SCJSO and was prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Essex County, N.J., Man Admits Smuggling Drugs into Federal Detention FacilityRead the Press Release
TRENTON, N.J. – An East Orange, New Jersey, man today admitted his involvement in a scheme to smuggle marijuana and tobacco into the Essex County Correctional Facility, U.S. Attorney Paul J. Fishman announced.
Vladimir Sauzereseteo, 40, pleaded guilty before U.S. District Judge Mary L. Cooper in Trenton federal court to an information charging him with one count of conspiring to smuggle contraband into a federal detention facility.
According to documents filed in this case and statements made in court:
From September 2013 to January 2014, Sauzereseteo, an associate of Muhammad Subpunallah, 32, a federal detainee at the Essex County Correctional Facility, delivered marijuana and tobacco to Brian Kapalin, 67, of Maplewood, New Jersey, a lawyer who smuggled the contraband into the jail in exchange for a cash fee.
On one occasion in January 2014 Kapalin spoke with Subpunallah over a recorded jail phone. Subpunallah asked Kapalin to deliver contraband to an inmate at the Essex County Correctional Facility. After receiving $1,650 via Western Union money transfers, Sauzereseteo used the money to purchase marijuana and delivered the drugs to Kapalin, along with a cash payment for Kapalin’s service. A few days later, Kapalin met an inmate in the attorney conference room at the Essex County Correctional Facility and gave him the marijuana.
The conspiracy charge to which to Sauzereseteo pleaded guilty carries a maximum potential penalty of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for Dec. 4, 2014. Charges against Kapalin and Subpunallah are still pending, and they are considered 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, and investigators with the Internal Affairs Division of Essex County Jail, under the direction of Warden Roy Hendricks, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division and Rob Frazer of the office’s Criminal Division, Organized Crime/Gangs Unit, in Newark.
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Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New JerseySauzereseteo, Vladimir Information
Eight Charged with Cocaine Conspiracy ChargesRead the Press Release
LYNCHBURG, VIRGINIA – Eight individuals from the Lynchburg area have been charged with a variety of federal crimes related to an alleged cocaine distribution conspiracy that is accused of dispersing more than 500 grams of cocaine in the Lynchburg region between September 1998 and August 2012.
In an indictment returned July 24, 2014 by a Federal Grand Jury sitting in United States District Court for the Western District of Virginia in Roanoke, the following have been charged:
• Edward Dennis Jones, 38, of Lynchburg, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine, three counts of distributing cocaine and one count of illegal possession of a firearm.
• Bryce Lewis Carter, 29, of Lynchburg, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine and one count of distributing cocaine.
• Carlos Demetrice Jackson, 28, of Amherst, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.
• Jeroid Montezs Matthews, 36, of Madison Heights, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine and two counts of distributing cocaine.
• Tony Sylvester Monroe, 40, of Evington, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.
• Tyrone Edwin Lewis, 28, of Madison Heights, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.
• Lateef Yusef Jones, 36, of Roanoke, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine and attempt to distribute cocaine.
• Randall Aaron Falwell, 28, of Lynchburg, Va., has been charged with one count of conspiracy to possess with the intent to distribute and to distribute cocaine.
The investigation of the case was conducted by Federal Bureau of Investigation and the Drug Enforcement Administration, the Central Virginia Drug Task Force, the Virginia State Police, the Amherst County Sheriff’s Office, the Lynchburg Police Department, the Campbell County Sheriff’s Office, the Appomattox County Sheriff’s Office and US Probation and Parole. Assistant United States Attorney Craig “Jake” Jacobsen will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
Delaware County Man Pleads Guilty to Major Fraud Against the United StatesRead the Press Release
PHILADELPHIA – Kenneth Narzikul, 59, of Media, PA, pleaded guilty today to charges of major fraud against the United States, obstruction of a federal audit, and making false claims to the government, in connection with operation of his business, NP Precision, Inc., a machine tool business located in Folcroft PA. U.S. District Court Judge L. Felipe Restrepo scheduled a sentencing hearing for November 25, 2014.
Narzikul was President and 85% owner of NP Precision, responsible for all aspects of NP Precision’s business, which included contracting with federal agencies to produce critical hardware components used in military helicopters and other aircraft. At the guilty plea hearing, Narzikul admitted to misusing progress payments on contracts with the United States, by failing to pay subcontractors and requesting progress payments under the contracts for costs that NP Precision had not actually incurred, and without the intention of using the progress payments for the costs and contracts at issue, in violation of Federal Acquisition Regulations (FAR). Narzikul admitted that he schemed to fraudulently divert and steal approximately $1.2 million in progress payments that the United States paid NP Precision under two contracts to produce drive shaft couplings for the U.S. Army helicopter Model CH-47, commonly known as a Chinook helicopter. Consequently, as Narzikul admitted, the United States received a very belated and many times incomplete product, far later than required under the delivery schedules. In addition, Narzikul admitted that he made false statements and caused others at NP Precision to make false statements to government auditors, and made false claims to falsely reflect progress on numerous Army and Air Force contracts and to continue to receive progress payments from the United States. Narzikul admitted further that he used the diverted funds to pay outstanding obligations on other contracts and other business and personal expenses of the defendant and his family.
Narzikul faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $1.5 million fine, and a $300 special assessment. Full restitution of as much as $1.2 million also may be ordered.
The case was investigated by the Major Procurement Fraud Unit (MPFU) of the United States Army Criminal Investigative Command (Army CID), the Defense Criminal Investigative Service (DCIS); and the United States Air Force Office of Special Inspection (Air Force OSI). It is being prosecuted by Assistant United States Attorney Mary E. Crawley.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525Correctional Officer Pleads Guilty to Conspiracy to Smuggle Heroin, Methamphetamine and Other Contraband into Taft Correctional InstitutionRead the Press Release
FRESNO, Calif. — Correctional officer Ramon Cano, 28, of Bakersfield, pleaded guilty today to a conspiracy to provide and possess contraband in prison, United States Attorney Benjamin B. Wagner announced.
According to court documents, between November 2013 and February 27, 2014, while working at the Taft Federal Correctional Institution, Cano conspired with inmate Gerardo Alvarez-Montanez, 32, to smuggle cellphones, cash, alcohol and controlled substances into the federal prison in return for cash.
Cano is scheduled to be sentenced by United States District Judge Anthony W. Ishii on December 15, 2014. On June 23, 2014, Montanez pleaded guilty to a conspiracy to provide and possess contraband in prison. He is scheduled to be sentenced on September 15, 2014.
Both defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, 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.
This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Justice Office of the Inspector General. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
Coal Miner Sentenced for Falsifying RecordsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
WHEELING, WEST VIRGINIA - A West Virginia coal miner who falsified safety records at an Ohio County mine has been sentenced in Federal court.
United States Attorney William J. Ihlenfeld, II, announced that Sean A. CHASE, 32 years old, of Spencer, West Virginia, was sentenced to two years of supervised release after being convicted earlier this year of “Making False Representations and Certifications” on mine safety records and one count of “False Statements to a Federal Agent.” According to investigators, CHASE claimed to be a mine foreman and to be qualified to perform mine safety exams while working at the Tunnel Ridge Mine in Ohio County when in fact he held no such certification. CHASE also claimed that he took the mine foreman examination and was issued a foreman card and foreman number.
U.S. Attorney Ihlenfeld praised the efforts of the investigators and encouraged anyone with knowledge of this type of offense to bring it to the attention of authorities. “We must do everything we can to protect our coal miners, including prosecuting individuals who break the law for their own financial gain,” said Ihlenfeld.
Joseph A. Main, Assistant Secretary of Labor for Mine Safety and Health, stated: “Accurate mine operator examinations of workplaces by certified individuals are a cornerstone of the Mine Act, and are required to protect miners from injury, illness, and death. MSHA appreciates the efforts of the U.S. Attorney to keep miners safe by holding examiners accountable when they falsify records and attempt to mislead Agency investigators.”
This case was investigated by the U.S. Department of Labor, Mine Safety and Health Administration, and the West Virginia Office of Mine, Health, Safety and Training and prosecuted by Assistant United States Attorney David J. Perri.Carrolltown Woman Pleads Guilty to Federal Gun and Drug ChargesRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, United States Attorney David J. Hickton announced today.
Deborah L. Lute, 35, pleaded guilty to two counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from April 2012 to March 8, 2013, Lute conspired to distribute more than 100 grams of heroin, and on March 8, 2013, she possessed two Hi Point pistols in furtherance of drug trafficking.
Judge Gibson scheduled sentencing for February 5, 2015, at 10 a.m. The law provides for a total sentence of life in prison, a fine of $5,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offences and the prior criminal history, if any, of the defendant.
Pending sentencing, the court revoked Lute's bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Lute.
Cambria County Man Possessed Kahr Arms Pistol with Serial Number RemovedRead the Press Release
JOHNSTOWN, Pa. - A Cambria County resident pleaded guilty in federal court to a charge of unlawful possession of a firearm which had the serial number removed, United States Attorney David J. Hickton announced today.
Aaron C. Spanik, 34, of Blandburg, Pa., pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on Nov. 3, 2011, Spanik unlawfully possessed a Kahr Arms pistol, which had the manufacturer's serial number removed and which had been shipped in interstate or foreign commerce.
Judge Gibson scheduled sentencing for Jan. 15, 2015, at 2 p.m. The law provides for a total sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the Judge released the defendant on bond.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police and the Allegheny Township Police Department conducted the investigation that led to the prosecution of Spanik.
According to Mr. Hickton, Spanik is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
Cahokia Man Sentenced to 308 Months for Kidnapping and A Firearm OffenseRead the Press Release
Follow @SDILNewsAntwon D. Jenkins, a 27 year old Cahokia resident, was sentenced Friday by United States Chief District Court Judge David R. Herndon to 308 months in federal prison for kidnapping and using or carrying a firearm during or in relation to kidnapping, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today.
According to Court documents, Jenkins, was indicted in August 2012 for kidnapping, or aiding and abetting kidnapping, and for using or carrying a firearm during or in relation to the kidnapping or aiding and abetting kidnapping. A jury in the United States District Court for the Southern District of Illinois in East St. Louis, Illinois, returned a guilty verdict on both counts.
The evidence at trial showed that on July 17, 2012, Jenkins lured a young man to his house in East St. Louis, Illinois. While there, Jenkins and others brutally attacked the young man and accused him of committing a burglary on Jenkins’ second home in Cahokia. After some time, Jenkins told the young man they were going to “take that ride.” And the young man was walked outside and put into Jenkins’ truck where the young man could not get out. Jenkins drove the young man across the Poplar Street Bridge and into Franklin County, Missouri. During the drive, Jenkins pulled off Highway 44 twice and threatened the young man twice at gunpoint. The second time Jenkins pulled over, he told the young man to get out of the truck so Jenkins could shoot him in the back. Fortunately, the victim ran off into the woods and escaped. Jenkins was arrested a few days later.
Judge Herndon sentenced Jenkins to 188-months for the kidnapping count and 120-months for the firearm offense in federal prison to run consecutively, for a total term of 308 months. There is no parole in the federal prison system. In addition to the prison sentence, Judge Herndon also sentenced Jenkins to serve 5 years of supervised release, to pay restitution to the victim, and to pay a $200 special assessment fee. According to United States Attorney Wigginton, “My office remains committed to prosecuting this district’s most violent criminals, especially those who arm themselves with firearms and use them. Antwon Jenkins is an exceptionally dangerous and violent man. A sentence like this sends a strong, clear message: stop the violence or pay the price.” Wigginton further recognized the victim and his family for their courage and strength during the case, and he acknowledged and thanked the many members of law enforcement for their hard work and dedication: “I am particularly grateful to the victim and his family for their patience and courage during the investigation and prosecution of this case. It has been a long road to justice. I also want to thank the tireless efforts of the many members of law enforcement who investigated this case and without whom there would not be a case.”
The investigation team was comprised of agents and officers from the Federal Bureau of Investigation, the Illinois State Police, the Columbia, Illinois, Police Department, and the East St. Louis, Illinois, Police Department, who comprised the Save Our Streets Task Force active in the summer of 2012. The case was prosecuted by Assistant United States Attorney Monica A. Stump with the assistance of Assistant United States Attorney Scott A. Verseman during the trial.
Brockport Man Charged with Mutiple Charges Including Fraud, Theft of Public Money, and Stolen MailRead the Press Release
ROCHESTER, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Steven Ray, 48, of Brockport, NY, was arrested and charged by criminal complaint with mail fraud, forgery of endorsement of treasury checks, theft of public money, and theft of stolen mail. The charges carry a maximum penalty of 20 years in prison, a $250,000 fine or both.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the complaint, on February 1 2013, a U.S. Postal Service carrier was robbed at gunpoint while delivering mail to an apartment building in Brooklyn, NY. One of the occupants of the apartment building was expecting two Treasury checks from the Social Security Administration. Subsequently, on February 11, 2013, the same two checks, with the purported endorsements of the intended recipients, were deposited into a Chase bank account opened by the defendant. Other checks deposited into Ray’s account during this time included checks that were issued to other occupants of the same apartment building in Brooklyn.
The complaint further alleges that between January 2013 and August 2013, additional Treasury checks issued to residents in Georgia, Alabama, South Carolina and Florida were deposited into bank accounts associated with the defendant and endorsed with the name of the intended payees. None of the checks had been issued to Ray.
A total of 128 U.S. Treasury checks totaling $399,212 were deposited into accounts under the defendant’s control. The checks included tax refunds, Supplemental Security Income payments and Department of Education payments.
The criminal complaint was the culmination of an investigation on the part of the United States Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Acting Special Agent in Charge Shantelle Kitchen.
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.Bakersfield Marijuana Store Worker Pleads GuiltyRead the Press Release
FRESNO, Calif. —Gustavo Angel Salinas, 26, of Bakersfield, pleaded guilty today to conspiring to manufacture, to distribute, and to possess with the intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced today.
According to court documents and proceedings, Salinas worked as a “bud-tender” for ANP Collective in Bakersfield. The store came to the attention of Bakersfield police officers when they responded to an unrelated complaint. The officers found evidence of an indoor marijuana cultivation operation and DEA agents responded with a search warrant. During the search, agents seized 170 marijuana plants, 25 pounds of processed marijuana, a 12 gauge shotgun, and $68,173 in cash.
Salinas is scheduled to be sentenced by United States District Judge Anthony W. Ishii on November 3, 2014. Salinas faces a maximum term of 20 years in prison and a fine of up to $1 million. 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. Salinas was previously ordered and remains detained pending sentencing.
The case was investigated by the U.S. Drug Enforcement Administration and the Bakersfield Police Department. Assistant United States Attorney Karen A. Escobar is prosecuting this case.
Armed Robbers Exiled to at Least 12 Years in PrisonRead the Press Release
Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Jeffery Louis Adams, age 35, and Antonio Lamont Gaithers, age 33, both of Washington, D.C., today to 12 and 14 years in prison, respectively, each followed by five years of supervised release, for two counts of robbery and using a gun during a robbery. Judge Titus further ordered that Adams to pay restitution of $209,750 and Gaithers pay restitution of $241,000.The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; the members of the FBI Cross Border Task Force: Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Acting Assistant Director in Charge Timothy A. Gallagher of the Federal Bureau of Investigation - Washington Field Office; Chief Mark A. Magaw of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Chief Cathy L. Lanier of the Metropolitan Police Department; and Maryland Attorney General Douglas F. Gansler.
According to their plea agreements, on October 7, 2011, Gaithers and co-conspirator Davon Williams, both armed with handguns, entered the cash office in a Walmart in Hyattsville, Maryland and demanded money from employees. The gunmen stole $140,000 and ran outside where a co-conspirator was waiting in a getaway vehicle. The robbers sped away.
On January 16, 2012, Gaithers, armed with a handgun, confronted an employee of Garda Cash Logistics who was carrying a bag containing $88,659.03 in cash and $13,337.90 in checks from the Bowie Walmart store to a Garda armored transport vehicle parked in front of the store. Gaithers pointed his handgun at the Garda employee and demanded the money. After the Garda employee complied, Gaithers, carrying the money bag, ran to a stolen van occupied by Adams, Williams, and others. The van sped away and was located shortly thereafter. Williams’ cell phone was found inside the van.
Adams also admitted that he participated in two other robberies: the armed robbery of a bank in Lexington Park, Maryland, stealing $109,750; and the robbery of a credit union in Clinton, Maryland, stealing $100,427.
In addition to actively participating in these robberies, Adams helped plan and prepare for these crimes. This included stealing vehicles used during the robberies, communicating with co-conspirators, surveillance of the business before the robberies, being present at the robberies as a look-out, and assisting in the escapes.
Davon Stephon Williams, age 23, of Washington, D.C, previously pleaded guilty to two counts of robbery and using a gun during a robbery and was sentenced to 162 months in prison. Judge Titus ordered that Williams pay restitution of $242,248.53.
United States Attorney Rod J. Rosenstein commended the members of the FBI’s Cross Border Task Force and the Maryland Attorney General’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney William D. Moomau, and Special Assistant United States Attorney Gerald A. A. Collins, a cross designated Maryland Assistant Attorney General assigned to Exile cases, who prosecuted the case.
22 August 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Jeffrey Miller, 45 of Osceola, Indiana pled guilty to the felony offenses of interstate transportation of stolen goods and money laundering. The magistrate judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service. Sentencing has been set for 11/25/2014. This case is being prosecuted by Assistant United States Attorney Donald Schmid.
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
- Ricardo Perez-Arrellano, 45, of South Bend, Indiana was sentenced to 10 months imprisonment after pleading guilty to the felony offense of being a prohibited person in possession of a firearm. According to documents filed in this case, Perez-Arrellano was convicted of a 2012 misdemeanor battery. In March 2014, Perez-Arrellano was a regular illegal user of controlled substances and knowingly possessed a loaded Mossberg, model 600AT, 12 gauge pump shotgun, and a loaded Jimenez, model JA Nine, 9mm. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald Schmid.
- Kevin Becerril, 19, of Mishawaka, Indiana was sentenced to 18 months imprisonment with 2 years supervised release after pleading guilty to the felony offense of being a felon in possession of a firearm. According to documents filed in this case, Becerril possessed a Colt Trooper revolver while in the Northern District of Indiana. He had been convicted of felony possession of marijuana in St. Joseph County in 2013 and sentenced to 18 months probation. Becerrill knew that he was not to possess a firearm due to this conviction and did not dispute that the gun had traveled through interstate or foreign commerce. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Israel Garcia, 33, of South Bend, Indiana was sentenced to 92 months imprisonment, 3 years supervised release and a $100 special assessment after pleading guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a mixture or substance containing cocaine. According to documents filed in this case, on April 9, 2013, Garcia possessed a package containing cocaine in his car when he fled from police. It was Garcia’s intent to sell this cocaine while in St. Joseph County, Indiana. This case was the result of an investigation by the Drug Enforcement Administration. This case was prosecuted by Assistant United States Attorney Frank Schaffer.
- Quintin T. Ferguson, 25, of Mishawaka, Indiana was sentenced to 91 months imprisonment with 3 years supervised release after pleading guilty to the felony offenses of possessing heroin with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. According to documents filed in this case, a search warrant was issued on September 26, 2013 as a result of heroin dealing by Ferguson. Prior to the execution of the warrant, Ferguson and two males were observed leaving the residence in a vehicle which was later stopped by South Bend police officers. Ferguson was driving the vehicle and. after his apprehension, three (3) bags of suspect heroin were found inside the vehicle. Two small plastic bags were located in the driver’s door change pocket holder and one small plastic bag of heroin was located under the driver’s seat. Ferguson also possessed $1,071in currency and a digital scale when he was apprehended. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Donald J. Schmid.
Week in Review – HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Sammy Guerrero, 36, of Hammond, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has been set for 11/19/2014. This case is being prosecuted by Assistant United States Attorney Nick Padilla.
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
- Dwayne Allen Jackson, 28, of Chicago, Illinois was sentenced to 1 year probation with 20 hours a week of community service if not working full time. Sentence is to be served consecutive to his 4 year imprisonment after pleading guilty to the felony offense of making a materially false statement. According to documents filed in this case, in August 2014, Jackson was driving a vehicle pulled over by law enforcement officers in relation to the vehicle being potentially stolen and Jackson’s connection with the passing of counterfeit money at local retail stores. This case was the result of an investigation by the Department of Treasury - Secret Service. This case was prosecuted by Assistant United States Attorney Randy Stewart.
- Lashon Sain, 50, of Merrillville, Indiana was sentenced to one year term of probation to be served on home detention with electronic monitoring after pleading guilty to the felony offense of aiding and abetting a monetary transaction involving criminally derived property of a value greater than $10,000; the specified unlawful activity from which the monetary transaction derived was a conspiracy to distribute and distribution of marijuana and cocaine. According to documents filed in this case, Sain was convicted of aiding and abetting a money laundering crime for her part in a scheme to help convicted drug trafficker, Dwayne Crawford, purchase a $21,400 vehicle with drug proceeds and hide his purchase by using a nominee buyer. This case was the result of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Internal Revenue Service. This case was prosecuted by Assistant United States Attorney Jacky Jacobs.
- Veronica Woods-Smith, 62, of Hammond, Indiana was sentenced to 5 months imprisonment, 2 years of supervised release and to pay $108,401.00 in restitution after pleading guilty to the felony offense of theft of government property. According to documents filed in this case, this defendant failed to notify the Social Security Administration of her husband’s death in January 2007 and from February 2007 through September 2013 her husband’s benefit funds that were deposited monthly into a joint bank account. Woods-Smith further admitted that she spent the money in various ways with the total amount of money she stole from the Social Security Administration being $108,401. This case was the result of an investigation by the Social Security Administration and the Office of the Inspector General. This case was prosecuted by Assistant United States Attorney Nick Padilla.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Charles D. Walker, Jr., 39, of Fort Wayne, Indiana pled guilty to the felony offenses of maintaining a drug-involved premises and being 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 Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and the Allen County Police Department. Sentencing will be set by separate order by the district court. This case is being prosecuted by Assistant United States Attorney Anthony W. Geller.
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.
Warm Springs Woman Pleads Guilty to Setting Fire Results in Brush Fire Burning over 50,000 AcresRead the Press Release
Defendant Admits Starting Fire Because Her Firefighter Friends Were BoredPORTLAND, Ore. – Sadie Renee Johnson, 23 of Warm Springs, entered a plea of guilty before U.S. District Judge Marco A. Hernandez on May 19, 2014, to the crime of setting brush and timber on fire on the Warm Springs Indian Reservation.
By her guilty plea the defendant admits that on July 20, 2013, at about 9:15 a.m., she was riding as a passenger in a car traveling on Route 3 near Sunnyside Drive on the Warm Springs Indian Reservation in the District of Oregon and she used a lighter to light a small firework and threw the firework out the passenger window into the brush along the side of the road (Route 3) as they were driving. The lit firework started the brush on the side of the road on fire, which quickly spread northwest. The fire was called in to dispatch at approximately 9:29 a.m. The first responders identified the point of origin at milepost 5 on the north side of the road within a 1- to 1.5-acre area. Within minutes the fire spread and increased in size ultimately burning approximately 51,480 acres of brush on the Warm Springs Indian Reservation. The fire was contained by July 29, 2013, was under control by August 13, 2013, but not declared out until September 13, 2013. The approximate cost to fight and contain this 51,480-acre fire for the Bureau of Indian Affairs was $7,901,973. Defendant is required to pay full restitution.
When questioned by detectives, defendant admitted she threw a tiny firework out the window of the vehicle that she lit with a cigarette lighter. Johnson said her firefighter friends were bored and needed work but she didn’t mean for it to be 30,000 acres. Defendant stated she thought it would be a two-day fire and be put out. On July 22, 2013, defendant posted a statement on Facebook stating: “like my fire?”
The defendant is in custody and sentencing is scheduled for September 3, 2014. Johnson faces a maximum sentence of five years in prison, a fine of $250,000, and three years of supervised release.
This case was investigated by BIA Special Wildland Arson Investigation Team and the Confederated Tribes of Warm Springs Police Department. Assistant U.S. Attorney Pamala Holsinger is handling the prosecution of the case.
Two Bloods Members Sentenced to Life in Prison for the Execution of Rival Gang LeaderRead the Press Release
Earlier today at the Brooklyn federal courthouse, Dontae Sebbern and Dexter Waiters were sentenced to life in prison for, among other crimes, the racketeering-related murder of gang leader Jermaine Dickersen, also known as “Big Den.” The defendants, members of a set of the Bloods known by various names including the “Gorilla Bloods,” were convicted after trial in December 2012 of racketeering, racketeering conspiracy, murder in-aid-of racketeering, narcotics trafficking, and other firearms charges.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
“The defendants turned the streets of Staten Island into a war zone to perpetuate their gang feud. These defendants were not commissioned soldiers, however, but common criminals who used gang allegiance as an excuse for murder and mayhem. This sentencing closes one chapter in this Office’s ongoing investigations into gang and narcotics-related violence on Staten Island,” stated United States Attorney Lynch. “This Office and our federal and city law enforcement partners will not tolerate such senseless and heinous criminal conduct in our communities.” Ms. Lynch thanked the Drug Enforcement Administration, the Federal Bureau of Investigation, Immigration and Customs Enforcement, the New York City Police Department, and the Richmond County District Attorney’s Office for their assistance in the investigation.
In late 2009, a gang war erupted between the Gorilla Bloods and a rival criminal organization known as the “Arlington Crew,” comprised largely of Bloods gang members based in the Arlington neighborhood of Staten Island. Sebbern, Waiters, and their associate Earl Mangen sold drugs together and, prior to the war, were supplied by associates of the Arlington Crew. In the early morning of November 7, 2009, at a party on Arlington Avenue, a Gorilla Bloods leader started a fight with a member of the Arlington Crew. Dickersen, who at the time was one of the highest ranking Bloods on Staten Island, as well as Arlington Crew members Dion Nelson and Frankie Nelson joined in the fight. When a member of the Gorilla Bloods pulled out a knife, Dion Nelson drew a firearm and shot him in the lower back.1 About an hour after this shooting, Dickersen was shot and killed in a nearby parking lot. Moments later, Sebbern and Waiters were arrested jumping out of a car in possession of firearms, including the murder weapon, and wearing matching camouflage bullet-proof vests.2
Overall, as a result of a series of investigations begun in 2008 into drug and gang-related activity on the North Shore of Staten Island, more than 30 defendants have been convicted of racketeering, murder, narcotics trafficking, and firearms offenses.
The sentencing proceeding of Sebbern and Waiters was held before United States District Judge Sandra L. Townes.
The government’s case was prosecuted by Assistant United States Attorneys Shreve Ariail and Kevin Trowel.
The Defendants:
DEXTER WAITERS, also known as “Bugotti”
Age: 27
Staten Island, New York
DONTAE SEBBERN, also known as “K.D.”
Age: 26
Staten Island, New York
E.D.N.Y. Docket No. 10-CR-087
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1 In April 2013, Dion Nelson was sentenced to 25 years in prison following his guilty plea to discharging a firearm in connection with a narcotics trafficking offense.
2 One week later, Mangen was found dead outside his home, shot three times. Andre Collier, an associate of Dickerson’s and Mangen’s former drug supplier, subsequently pled guilty to premeditated homicide and was sentenced to 35 years in prison.
Tioga County Physician and Three Others Indicted for Unlawful Distribution of Controlled Substances and Health Care FraudRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a Tioga County physician has been charged with unlawful distribution of controlled substances and health care fraud. Three other individuals are also charged in an indictment returned Tuesday by a federal grand jury in Scranton, Pennsylvania.
According to United States Attorney Peter Smith, the indictment charges Dr. John Terry, age 63, and Thomas Ray, age 51, both of Wellsboro, Pennsylvania, with Possession with Intent to Distribute a Controlled Substance and Health Care Fraud. It also charges David Hatch, age 27, Addison, New York, and Stephen Heffner, Jr., age 46, Elkland, Pennsylvania, with health care fraud. The defendants allegedly aided and abetted each other in a scheme to obtain benefits from a health care program by false and fraudulent pretenses.
Terry, Hatch and Heffner, Jr. were released after a hearing yesterday in Williamsport before Magistrate Judge William I. Arbuckle, III. Ray is in state custody on other charges.
Beginning January 2010 through July 2013, Terry allegedly provided prescriptions for excessive quantities of Oxycodone and other narcotics to individuals who he knew were not seeking the drugs for a legitimate medical purpose. Terry also allegedly wrote prescriptions for narcotics for individuals who were not his patients, knowing that the federal Medicare program was going to be billed for the unlawful prescriptions.
During the execution of a federal search warrant at his office on July 8, 2013, Terry voluntarily agreed to surrender his medical license and his DEA registration.
Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
The charges stem from an investigation by Drug Enforcement Administration, the Department of Health and Human Services, Office of Inspector General, and the Pennsylvania State Police.
“We rely on doctors to be part of the prescription drug abuse solution – not part of the problem,” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Philadelphia Office. “Abuse of prescription drugs now kills more people than illegal drug abuse and costs taxpayers many millions of dollars.”
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty for the controlled substance violation is 20 years’ imprisonment and 10 years’ imprisonment for the health care fraud violation, under the federal statutes, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Three Southwest Suburban Defendants Indicted in Alleged Scheme to Defraud Organ and Tissue Donor NetworkRead the Press Release
CHICAGO ― Three southwest suburban defendants were indicted on federal fraud charges for allegedly scheming to swindle hundreds of thousands of dollars from a not-for-profit network that coordinated organ and tissue donations in Illinois and northwest Indiana, federal law enforcement officials announced today.
The indictment seeks forfeiture of $652,298 in alleged proceeds of the fraud scheme.
One defendant, SHARI L. HANSEN, 41, of Bolingbrook, was the auditing coordinator for the organization and was responsible for reviewing and approving invoices from physicians who contracted to engage in organ and tissue procurement. Co-defendants, ERIC V. MURFF, 37, of Plainfield, and DEBRA A. SCHULTZ, 43, of Lockport, allegedly received the proceeds of false invoices and shared the funds with Hansen.
All three defendants will be arraigned on a date yet to be determined in U.S. District Court. Hansen was charged with six counts of wire fraud, and Murff and Schultz were each charged with three counts of wire fraud, in a six-count indictment that was returned yesterday by a federal grand jury.
According to the indictment, between March 2008 and April 2010, the defendants allegedly schemed to submit false invoices to the donor network, identified as Organization A, seeking payment to physicians for organ and tissue procurement work that they knew was not performed. Each false invoice claimed that either Murff or Individual A, both of whom were not physicians, purportedly performed the organ or tissue procurement specified. Hansen allegedly authorized the fraudulent payments to be made.
Murff and Schultz deposited checks from Organization A, which were payable to Murff and Individual A, into accounts they controlled and then transferred a portion of the funds to Hansen, the charges allege.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Tony Gómez, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago. The government is being represented by Assistant U.S. Attorney Paul Tzur.
Wire fraud carries a maximum sentence of 20 years in prison and a $250,000 fine or an alternate fine of twice the loss or twice the gain, whichever is greater. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Three Cleveland Men Sentenced to Prison for Bank RobberyRead the Press Release
Three Cleveland men were sentenced to prison for their roles in an armed robbery of a Euclid bank, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland office.
Shawn Caldwell, 22, was sentenced to more than 24 years in prison. Julian Anderson, 23, was sentenced to more than 11 years in prison. Dejuan Brown, 24, was sentenced to more than 10 years in prison.
The men aided and abetted one another in robbing a PNC Bank in Euclid, Ohio, on January 24, 2014. They stole approximately $39,900 from the bank and that they carried and brandished firearms during the robbery.
A fourth defendant, Germain D. Davis, Jr., 20, will be sentenced next week.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump and Michelle M. Baeppler following an investigation by the Federal Bureau of Investigation and the Euclid Police Department.
Staten Island Man Who Defrauded over 250 Victims Sentenced to 292 Months of Imprisonment for Multi-Million Dollar Fraudulent Investment SchemeRead the Press Release
BROOKLYN, NY – Earlier today, at the federal courthouse in Brooklyn, Peter Liounis, a resident of Staten Island, was sentenced to 292 months in prison following his conviction on February 5, 2014, of six counts of wire fraud, one count of mail fraud, one count of wire and mail fraud conspiracy, and one count of securities fraud after a two-week trial. For nearly four years, Liounis and his co-conspirators ran three successive fraudulent investment schemes through which they obtained over $15 million from over 250 investors based on false promises about investment opportunities.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Philip R. Bartlett, Postal Inspector in Charge, U.S. Postal Inspection Service, New York Division; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), New York; and Robert J. Sica, Special Agent-in-Charge, United States Secret Service. The sentence was imposed by United States District Judge I. Leo Glasser.
“Peter Liounis hid behind assumed identities to fleece unsuspecting investors. His two prior convictions didn’t teach him respect for the law, as he continued to cheat hundreds of innocent victims of millions of dollars. Liounis thought his third time in court would be a charm. Instead a federal jury saw him for the inveterate fraudster and con man he really is,” stated United States Attorney Lynch. “We will continue to pursue tirelessly those individuals who would victimize investors.”
At a pre-sentencing proceeding, Judge Glasser stated that the “scam was as sophisticated as any scam that I have had occasion to deal with in this courthouse in over 30 years.”
A. The Grayson Hewitt Scheme
As proven at trial, in March 2011, investors were contacted by a person identifying himself as “Mark Anderson from Grayson Hewitt.” “Anderson” told investors that Grayson Hewitt purchased plaintiffs’ rights to future recoveries in personal injury and other lawsuits, and promised a 15% return on their investments.
In a series of calls captured by a court-ordered wiretap, the son of an investor sought the return of his father’s money so that the son could place his father, who had suffered a heart attack, into an assisted living facility. Although the father had approximately $23,000 left in his Grayson Hewitt account, Liounis falsely told the son that his father had been depleting the account and had only $3,000 remaining. Liounis then sent the father and son a “get well fruit basket.” In another call, a Grayson Hewitt investor expressed skepticism about the company, noting, “I see this as a Bernie Madoff deal….” Liounis responded, “this is no way, no how, a Bernie Madoff … believe that! … You gotta understand, the amount of money we handle here, uh, we’d go away for a hell of a lot longer than Bernie did.”
The members of the scheme used investor funds to purchase gold, meals, clothing, and other consumer items. The Grayson Hewitt scheme resulted in over $4 million of losses to investors.
B. Prior Related Schemes
Liounis had also participated in two closely related prior schemes, as proven at a sentencing hearing.
From approximately December 2008 to November 2009, Liounis and his co-conspirators participated in a fraudulent investment scheme through a company called the Rockford Group. The Rockford Group marketed itself as a “leading private equity firm,” claimed to invest in plaintiffs’ rights to future recoveries in personal injury and other lawsuits, and promised a 15% return on their investments. The Rockford Group, however, never invested in any lawsuits. Instead, nearly all of the investor funds were wired to bank accounts overseas. Approximately 200 investors in the U.S. and Canada lost approximately $11 million as a result of this scheme.
In September 2010, an individual who had been solicited to invest in the Rockford Group by one of its representatives, “James Weston,” began receiving calls from someone who sounded like “Weston,” but was now identifying himself as “Andrew Black from UBS.” “Black” solicited multiple investors to invest in an initial public offering (IPO) of General Motors stock. Federal agents determined that there was no “Andrew Black” at UBS, and were able to halt this scheme in its early stages and return most of the investors’ funds.
Federal agents identified Liounis as the person who solicited the Rockford Group, General Motors IPO and Grayson Hewitt investors, using the names “James Weston,” “Andrew Black,” and “Mark Anderson.”
Prior to his most recent convictions at trial, Liounis had been convicted of federal fraud offenses three times before in 2001 and 2007.
The government’s case is being prosecuted by Assistant United States Attorneys Justin D. Lerer and Daniel A. Spector.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
PETER LIOUNIS
Age: 42
Staten Island, NY
E.D.N.Y. Docket No. 12-CR-350