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22 August 2014
Stamford Man Sentenced to 48 Months on Gun ChargeRead the Press Release
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Deirdre M. Daly, the United States Attorney for the District of Connecticut, announced that, GERALD COLEY, 44, of Stamford, was sentenced on August 20, 2014, by Chief U.S. District Judge Janet C. Hall in New Haven to 48 months in jail and 3 years of supervised release for his conviction of being a previously convicted felon in possession of a firearm and his violation of the terms of his federal supervised release. COLEY pleaded guilty to the charges on May 28, 2014.
According to statements made in court and admissions by COLEY under oath, on February 3, 2014, the Stamford police were called to the home of COLEY’s girlfriend on a report that he was holding her at gunpoint. Their three daughters had also been in the residence. The police arrived at the residence and quickly confirmed that a family friend had come there and had escorted the children outside. After the police arrived, COLEY’s girlfriend was permitted to leave the residence, and, eventually, COLEY himself came outside and turned himself in to the police. He advised the police that there was a gun behind a radiator in the living room. The police subsequently located a loaded Glock .40 caliber handgun in that location.
COLEY is a six-time prior convicted felon and was most recently convicted in 2002 in federal court in Connecticut of possession with intent to distribute cocaine base. He finished serving his 151-month sentence on that conviction in September 2012 and started serving a term of supervised release. He admitted to violating the terms of that release by possessing the handgun. He also admitted to having possessed the handgun in connection with another felony offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Stamford Police Department. This case is being prosecuted by Assistant United States Attorney Robert M. Spector.PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Six Individuals from Americana Corridor of South Orlando Indicted for Federal Firearm and Drug Trafficking OffensesRead the Press Release
Orlando, Florida - United States Attorney A. Lee Bentley, III announces the unsealing of six separate indictments charging Rodney Griffin (33, Orlando), Felix Warren (40, Orlando), Dave Stephen Alfred (27, Orlando), Junior Jeffrey Alexis (20, Orlando), Donte Antwan Gedeon (24, Orlando), and James Edward Walker (32, Orlando) with firearm and drug trafficking offenses. Griffin, Warren, Alfred, Alexis, and Gedeon have been taken into custody. If convicted, Griffin and Warren each face a mandatory minimum of 15 years in prison for possession of a firearm by a convicted felon as an armed career criminal. Alfred, Alexis, Gedeon, and Walker each face a maximum of 10 years of imprisonment for possession of a firearm by a convicted felon. Alfred and Warren also face drug trafficking charges carrying a maximum term of 20 years of imprisonment.
These indictments are a part of an interagency initiative to target the Americana corridor of South Orlando, which has been plagued by gun related violence.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Orange County Sheriff’s Office, Drug Enforcement Administration and Orlando Police Department. They will be prosecuted by Assistant United States Attorneys Christopher LaForgia and Embry Kidd. These cases are being 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 and improve the quality of life in communities where law enforcement efforts are focused.
Seymour Man Pleads Guilty to Filing False Tax ReturnRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and IRS-Criminal Investigation Special Agent in Charge William P. Offord, announced that MICHAEL S. VASATURO, 56, of Seymour, waived his right to indictment and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to filing a false tax return.
According to court filings and statements made in court, VASATURO, a business executive, earned supplemental income of approximately $132,500 in 2007 based on a private sale of copper to a scrap metal dealer, but failed to report any of the copper sale income on his 2007 federal income tax return.
VASATURO has paid the Internal Revenue Service $80,964.81 for the taxes plus interest and penalties due and owing on that unreported income. VASATURO also agreed to forfeit an additional $144,888.39 in cash that he admits to having “structured” into his bank account to avoid federal cash transaction reporting requirements.
VASATURO faces maximum penalties of three years imprisonment and a $100,000 fine. He is scheduled to be sentenced before Judge Thompson on November 14, 2014.
This matter was investigated by the Internal Revenue Service – Criminal Investigations Division. The case is being prosecuted by Assistant United States Attorney Henry K. Kopel.PUBLIC AFFAIRS CONTACT:
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(203) 821-3722 [email protected]Seven Defendants Charged in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Amos Rojas, Jr., U.S. Marshal, U.S. Marshals Service (USMS), announce the indictment of seven individuals for their roles in a stolen identity tax refund fraud scheme. The indictment charges defendants Lukner Blanc, 31, of Royal Palm Beach, Frank Fleuzinord, 29, of Cape Coral, Jean Juste, a/k/a “Junior” or “Shorty,” 24, of West Palm Beach, Benoit Placide, a/k/a “Snow” or “Mario,” 26, of West Palm Beach, Shelda Phadael, 28, of Lake Worth, Marie Claude, 25, of Lantana, and Marie Demesyeux, 29, of Lake Worth. Six of the defendants have been arrested. Fleuzinord remains at-large.
Defendants Phadael, Claude, and Demesyeux were arraigned today before United States Magistrate Judge Dave Lee Brannon. All three of the defendants pled not guilty. A trial date has not yet been set. Placide’s arraignment is scheduled for August 26, 2014, Juste’s arraignment is scheduled for August 27, 2014, and Blanc’s arraignment is scheduled for August 28, 2014.
All defendants are charged with one count of conspiracy to receive, conceal and retain monies stolen from the United States, in violation of Title 18, United States Code, Section 371.
In addition, Defendant Blanc is charged with three counts of theft of government money, in violation of Title 18, United States Code, Section 641, nine counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Defendant Fleuzinord is charged with two counts of aggravated identity theft. Defendant Juste was charged with one count of theft of government money, five counts of aggravated identity theft, and five counts of wire fraud. Defendant Placide is charged with five counts of aggravated identity theft and five counts of wire fraud. Defendant Phadael is charged with one count of theft of government money.
Defendants Claude and Demesyeux are each charged with one count of perjury, in violation of Title 18, United States Code, Section 1623(a), for making a false statement while testifying under oath before a Federal Grand Jury.
According to court documents, the defendants stole the identities of real persons (names, dates of birth, and Social Security numbers) and used the information to file fraudulent income tax returns online to the IRS. The defendants opened personal bank accounts and purchased debit cards that were utilized to receive the fraudulent income tax refunds. After the fraudulent refunds were sent by wire to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.
If convicted, the defendants face a maximum of five years in prison for the conspiracy charge, a maximum of ten years in prison for the theft of government money charge, a mandatory term of two years in prison for the aggravated identity theft charge, a maximum of twenty years in prison for the wire fraud charge, and a maximum of five years in prison for the perjury charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USMS Regional Fugitive Task Force. This case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
An indictment is only an accusation and a defendant is presumed innocent until and unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Santa Clara Business Owners Pleaded Guilty to Tax and Bank FraudRead the Press Release
SAN JOSE – Elena Moreno pleaded guilty on Aug. 20, 2014, to one count of conspiracy to defraud the United States by impeding and impairing the IRS, and one count of conspiracy to commit wire fraud and bank fraud, United States Attorney Melinda Haag and Deputy Assistant Attorney General Ronald Cimino of the Justice Department's Tax Division announced.
Arturo Moreno and Fidencio Moreno, co-conspirators pleaded, guilty on July 30, 2014. Arturo Moreno pleaded guilty to one count of conspiracy to defraud the United States by impeding and impairing the IRS, and one count of conspiracy to commit wire fraud and bank fraud. Fidencio Moreno pleaded guilty to one count of conspiracy to defraud the United States by impeding and impairing the IRS.
According to court documents, beginning in 2005 and continuing through at least 2010, Arturo Moreno, Elena Moreno, and Fidencio Moreno conspired to defraud the United States by failing to report all of the gross receipts from their charter bus company, Quality Assurance Travel (QAT), on the corporate tax returns for QAT and their personal income tax returns that they filed with the IRS. The total amount of unreported gross receipts during those years exceeded $966,908. Arturo Moreno and Fidencio Moreno were each fifty percent owners of QAT. The unreported income consisted primarily of cash receipts that were paid by passengers as they boarded the bus, then not deposited into the business bank accounts or tracked in the records given to the Morenos' return preparer. Prior to pleading guilty, the Morenos paid restitution to the IRS for the taxes owed on this unreported income.
Fidencio Moreno, 52, Elena Moreno, 40, and Arturo Moreno, 37, San Jose residents, also conspired to commit bank fraud and wire fraud between 2005 and July 2013 by submitting false and fraudulent loan applications that overstated the applicants' income and assets. In total, the defendants fraudulently obtained more than $3.3 million in loans through their conspiracy. Some applications also misrepresented the intended use of the property as a primary residence. This scheme allowed the defendants to purchase and/or refinance various pieces of property located in and around San Jose, Calif. After the defendants fell behind with the loan payments, they attempted to avoid foreclosure by submitting false and fraudulent applications to modify these loans. One of the four properties was ultimately sold via a short sale, while another was foreclosed upon.
The defendants were originally indicted on Oct. 18, 2012. All of the defendants were charged with 1 count of conspiracy to defraud the United States, in violation of 18 U.S.C. 371. Fidencio Moreno and Elena Moreno were charged with 4 counts of filing false tax returns for tax years 2006 through 2009, in violation of 26 U.S.C. 7206(1). Arturo Moreno was charged with 4 counts of filing false tax returns for tax years 2006 through 2009. A federal grand jury returned a superseding indictment against all of the defendants on Jan. 9, 2014. The superseding indictment charged all defendants with 1 count of conspiracy to defraud the United States, in violation of 18 U.S.C. 371, and 1 count of conspiracy to commit wire fraud and bank fraud, in violation of 18 U.S.C. 1349. Arturo Moreno was also charged with 6 counts of filing false tax returns, in violation of 26 U.S.C. 7206(1). Fidencio Moreno was charged with 5 counts of filing false tax returns and 6 counts of making false statements to a financial institution, in violation of 18 USC 1014. Elena Moreno was charged with 4 counts of filing false tax returns and 3 counts of making false statements to a financial institution. The superseding indictment also included a forfeiture allegation that sought a money judgment against all defendants of $3.3 million, as well as the forfeiture of four different properties in San Jose, Calif.
Conspiracy to defraud the United States is punishable with up to 5 years imprisonment and a $250,000 fine. Each count of filing a false tax return is punishable with up to 3 years imprisonment and a $250,000 fine. Conspiracy to commit wire fraud and bank fraud is punishable with up to 30 years imprisonment, and a $1 million fine. The defendants face a maximum sentence of 5 years imprisonment and a fine of $250,000 for conspiring to defraud the United States and a maximum term of imprisonment of 30 years and a fine of $1,000,000 for conspiracy to commit bank fraud and wire fraud. They could also be ordered to pay restitution to any financial institutions that they defrauded.
Trial Attorneys Katherine L. Wong and Todd P. Kostyshak of the Justice Department's Tax Division and Assistant U.S. Attorney Thomas Moore are prosecuting the case, with the assistance of Saundra Burgess. This case was investigated by IRS-Criminal Investigation.
(Moreno superseding information )
(Moreno et al superseding indictment )
Rochester Man Sentenced to Probation for Making False Statements on Naturalization ApplicationRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Tuffek Mohammed Ali Saleh, 41, a citizen and national of Yemen, who was convicted of making a false statement on an immigration document, was sentenced to 1 year probation by U.S. District Court Judge Charles J. Siragusa. He was also ordered to pay a $1,000 fine.
Assistant U.S. Attorney Craig R. Gestring, handled the case, stated that in April 2012, the defendant applied for U.S. Citizenship under the name Yehya Muthana Ali. During the processing of Saleh's application, it was determined that the defendant had previously applied to enter the United States using a different identity, including a different name and date of birth.
During the investigation, officials from the Department of Homeland Security conducted an immigration interview with the defendant. During this interview, the defendant was again asked several times about his identity, and he repeatedly denied ever using another name to try to enter the United States.
The plea is the culmination of an investigation on the part of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the New York State Police, under the direction of Major Mark Koss, and the United States Department of State, Diplomatic Security Service, under the direction of Resident Special Agent in Charge, Andrew Wright.Reading Man Indicted on Child Pornography ChargesRead the Press Release
Bradley A. DeTurck, 36, of Reading, PA, was charged yesterday by Indictment with receipt, distribution and possession of child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 150 years’ incarceration, which includes a mandatory 5 year period of imprisonment, a minimum 5 years up to a lifetime of supervised release, $2,000,000 in fines and $800 in special assessments.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by FBI and is being prosecuted by Assistant United States Attorney Jessica Natali.
Click here to view the indictment
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Pataskala Man Sentenced to Two Years in Prison for Interstate Transportation of Equipment Stolen from Chillicothe VA Medical CenterRead the Press Release
CONTACT: Fred Alverson
Public Affairs OfficerCOLUMBUS, OHIO – Curtis Lee Clark III, 48, of Pataskala, Ohio was sentenced to 24 months in prison, followed by three years of supervised release, for his role in transporting stolen generators and welding equipment worth $89,236.03 from the VA Medical Center in Chillicothe, Ohio which were then sold in West Virginia.
Carter Stewart, U.S. Attorney for the Southern District of Ohio and Gavin McClaren, Resident Agent in Charge, U.S. Department of Veterans Affairs – Office of Inspector General (OIG) announced the sentence handed down today by U.S. District Judge Algenon L. Marbley.
Clark pleaded guilty on January 17, 2014 to one count of interstate transportation of stolen goods. According to court documents, a generator and welder belonging to the VA as well as two generators belonging to VA contractors, were stolen from the Chillicothe VA Medical Center in October 2011. In August 2012, the Mingo County West Virginia Sheriff’s Office contacted the OIG, telling them that some of the stolen items had been recovered in a storage garage in Holden, West Virginia.
Further investigation led to Clark, a patient at the VA, who admitted that he knew the men who stole the equipment and that he helped transport the equipment to West Virginia and sell it. Clark received a few hundred dollars for transporting and selling the items. Clark also admitted to pawning some of the items stolen from the VA at a Columbus pawn shop. Other construction equipment was recovered from Clark’s former residence in Pataskala.
“We're pleased to have obtained justice in this case and look forward to returning this stolen equipment to our veterans at the Chillicothe VA Medical Center,” McClaren said.
U.S. Attorney Stewart commended the investigation by the VA Inspector General’s Criminal Investigation Division, the Chillicothe VA Medical Center Police who assisted with the investigation and Assistant U.S. Attorney Dale Williams, who represented the United States in the case.
# # #New York City Police Department Officer Pleads Guilty in Manhattan Federal Court to Fraud and Identity Theft ChargesRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that JOHN L. MONTANEZ, a police officer with the New York City Police Department (“NYPD”), pleaded guilty in Manhattan federal court to credit card fraud and identity theft offenses. MONTANEZ, who was arrested late May 2014, entered his plea today before U.S. District Judge Katherine Polk Failla.
Manhattan U.S. Attorney Preet Bharara said: “John Montanez summed it up well when he told a cooperating witness ‘I am not the cop you think I am.’ In fact, he’s a criminal who dishonored himself, the NYPD and the public he serves, and by doing so, made every other honest police officer’s job that much harder. I want to thank the Bronx District Attorney’s Office, the Federal Bureau of Investigation, and the NYPD Internal Affairs Bureau for working with my office to investigate, and snuff out, this conduct.”
According to the Complaint, Information, and today’s plea proceeding:
In 2011, an individual, who subsequently agreed to cooperate with law enforcement, and who is referred to in the case as the “CW,” informed MONTANEZ that the CW had a suspended and/or revoked driver’s license. In response, MONTANEZ offered to provide the CW with the name and driver’s license number of a real person – so that if the CW were stopped by law enforcement, the CW could pretend to be someone else – in return for items that the CW would purchase for MONTANEZ with fraudulently obtained or stolen credit cards. After that, in return for the CW purchasing merchandise for MONTANEZ, and providing to MONTANEZ credit card/debit card numbers that MONTANEZ understood were stolen or fraudulently obtained, MONTANEZ provided to the CW multiple names, dates of birth, and driver’s license identification numbers of other people. One such person, referred to in the Complaint as “Victim-1,” was a fellow police officer with the NYPD, serving in the same precinct as MONTANEZ.
The CW was arrested in June 2013 and later began recording meetings with MONTANEZ in connection with the CW’s cooperation with law enforcement. During these meetings, MONTANEZ offered to provide additional identities to the CW in return for merchandise purchased with credit/debit cards that MONTANEZ believed the CW had stolen or fraudulently obtained. In one recorded meeting, MONTANEZ observed to the CW: “I am not the cop you think I am. I am a piece of s***.”
MONTANEZ, 28, of the Bronx, New York, pleaded guilty to one count of access device fraud and one count of aggravated identity theft. He faces a maximum sentence of 17 years in prison, with a mandatory minimum term of two years. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
MONTANEZ is scheduled to be sentenced by Judge Failla on January 14, 2015.
Mr. Bharara thanked the Bronx County District Attorney’s Office, who worked with the CW to develop evidence implicating MONTANEZ and assisted in the prosecution. Mr. Bharara also praised the investigative work of the Federal Bureau of Investigation and the NYPD Internal Affairs Bureau.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Daniel C. Richenthal is in charge of the prosecution.
U.S. John Montanez Information
New Haven Man Pleads Guilty to Possessing Firearm IllegallyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JAQUAN PRICE, 23, of New Haven, pleaded guilty to one count of possession of a firearm by a convicted felon.
As alleged in court documents and statements made in court, on May 27, 2014, Price was arrested on state drug charges. Subsequently, a search was conducted of his house and a Jimenez Arms, 9mm pistol, loaded with 8 rounds of ammunition was seized from Price’s bedroom. Price later admitted that the weapon belonged to him. In August of 2011, PRICE was convicted in state court of possession with intent to distribute narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Price’s sentencing has been scheduled for November 13, 2014, before U.S. District Judge Stefan R. Underhill in Bridgeport. PRICE has been detained since his arrest on June 18, 2014.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Haven Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Peter D. Markle.
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(203) 821-3722 [email protected]Nevada Man Sentenced to 5 Years Probation After Guilty Plea to Deepwater Horizon Oil Spill (BP) FraudRead the Press Release
The United States Attorney, Kenyen R. Brown, announces that Teborius Gaines, a 31 year old resident of Las Vegas, Nevada was sentenced today. Mr. Gaines pled guilty on May 16, 2014, to participation in a mail fraud scheme. Mr. Gaines received a five year probationary sentence and was ordered to serve the first six months of the sentence on home confinement, to maintain employment, and to pay restitution in the amount of $13,400.00.
Special Agents of the United States Secret Service investigated the case and presented it to the U.S. Attorney's Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Gina S. Vann.
Montgomery County Man Pleads Guilty to Four Armed RobberiesRead the Press Release
Baltimore, Maryland – Lamont Bonds, age 26, of Gaithersburg, Maryland, pleaded guilty on August 21, 2014, to armed robbery and brandishing a firearm in furtherance of a crime of violence, in connection with four restaurant robberies.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Washington County Sheriff Douglas W. Mullendore; Chief J. Thomas Manger of the Montgomery County Police Department; Carroll County State’s Attorney Jerry Barnes; Washington County State’s Attorney Charles P. Strong; and Montgomery County State’s Attorney John McCarthy.
According to Bond’s plea agreement, between July 22 and November 25, 2012, Bonds and Marvel Alegria committed armed robberies at four Chipotle restaurants. Alegria had been the manager of the Chipotle in Mt. Airy, Maryland, prior to her termination on July 17, 2012, for violating company policies. Alegria began discussing robbing the Chipotle restaurant with Bonds, which whom she was having a relationship. Alegria advised Bonds of the best time to commit the robbery, how to access the restaurant, where the safe was located and that the manager had access to the safe. On July 22, 2012, Bonds and Alegria recruited Norman Guifarro to participate in the robbery, which was planned for that evening.
Bonds and Guifarro entered the restaurant wearing masks Bonds had made from tee shirts. Bonds, armed with a shotgun, forced the manager into the office at gunpoint and obtained the money from the safe, while Guifarro, armed with a knife, held the remainder of the employees on the floor in the kitchen area. Bonds and Guifarro fled after forcing the employees into a bathroom. Bonds and Guifarro stole $5,000 in cash, which they later divided among themselves and Alegria.
On August 4, October 21 and November 25, 2012, Bonds, armed with what appeared to be a black semi-automatic pistol, robbed Chipotle restaurants in Hagerstown, Gaithersburg and Damascus, Maryland, respectively, using similar methods as in the first robbery. In the August 4th robbery, Bonds and another man stole $9,400 in cash from the safe. Alegria drove Bonds to and from the Gaithersburg and Damascus robberies where Bonds stole $7,000 and $3,500, respectively. In each robbery, Bonds forced the manager to open the safe at gunpoint.
Bonds faces a maximum penalty of 20 years in prions for the robbery and a minimum of seven years, consecutive to any other sentence, and up to life in prison, for brandishing a firearm in furtherance of a crime of violence. U.S. District Judge Richard D. Bennett scheduled Bonds’ sentencing for November 24, 2014, at 11:00 a.m.
Marvel Alegria, previously pleaded guilty to her role in the conspiracy and is scheduled to be sentenced on September 23, 2014 at 3:00 p.m. Norman Guifarro pleaded guilty to the Mt. Airy robbery in Carroll County Circuit Court and is awaiting sentencing,
United States Attorney Rod J. Rosenstein commended the ATF, Maryland State Police, Montgomery County Police Department, Washington County Sheriff’s Office and the Montgomery, Washington and Carroll County State’s Attorney’s Offices for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney A. David Copperthite, who is prosecuting the case.
McLean Business Managers and Strayer University Official Convicted, Sentenced for Large-Scale Immigration FraudRead the Press Release
ALEXANDRIA, Va. – Two managers of McLean, Virginia-based Integrated Academics and a former admissions official for Strayer University have been convicted of conspiring to create fraudulent transcripts so that foreign students would appear eligible to retain their student visas in the United States.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Washington, D.C., made the announcement.
Mohamad Yousef Tellawi, 34, of Falls Church, Virginia, was sentenced today by U.S. District Judge T.S. Ellis, III to 22 months in prison, followed by three years of supervised release, for participating in the immigration document fraud conspiracy. Co-conspirators Lea Dzhin, 37, of Falls Church, Virginia, and Maher Khudari, 28, of Arlington, Virginia, previously pleaded guilty and were sentenced for their roles in the conspiracy. Tellawi and Dzhin also were ordered to forfeit $265,000 in proceeds from the fraud, and Khudari was ordered to forfeit $30,747.65.
According to court records, Tellawi and Dzhin are managers of Integrated Academics, a company that caters to international students and touts itself as offering a full range of services for students, including securing college admissions and providing academic advising and tutoring.
From about November 2012 to October 2013, Tellawi and Dzhin conspired with Khudari, an admissions official at Strayer University, to fraudulently create at least 58 official Strayer University transcripts in order to help clients of Integrated Academics retain their F-1 non-immigrant student visas and remain in the United States. Tellawi then would complete the necessary paperwork containing the fraudulent transcripts and meet with school officials on behalf of Integrated Academics’ student clients. In addition, Tellawi and Dzhin would facilitate their clients’ continued presence as student visa holders by hiring people to take online classes, write papers and take tests for the clients.
This investigation was conducted by ICE-HSI, with assistance from the Internal Revenue Service, Northern Virginia Community College Police Department, and Strayer University. Special Assistant U.S. Attorney C. Alexandria Bogle is prosecuting this case, with assistance from Special Assistant U.S. Attorneys William P. Jauquet and David Tyler.
Anyone with information concerning immigration fraud involving international students is urged to contact ICE-HSI’s tipline at 1-866-DHS-2-ICE or by email through the website www.ice.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-136.
# # #Massage Parlor Owner Sentenced for Harboring, Obstruction of JusticeRead the Press Release
WICHITA, KAN. - The former owner of a Wichita massage parlor was sentenced Friday to five years in federal prison for harboring an undocumented Chinese woman and threatening to harm a law enforcement officer, U.S. Attorney Barry Grissom said.
Gary H. Kidgell, 45, Waltham, Mass., pleaded guilty to one count of harboring an alien who was illegally in the United States and one count of attempted obstruction of justice. In his plea, Kidgell admitted that in January 2011 he interviewed a Chinese woman to work at a massage parlor he owned in Wichita. Kidgell spoke to the woman through an interpreter because she did not speak English. He made the Chinese woman stay at his residence and pay rent while she was working at his massage parlor.
In January and February 2014 while Kidgell was in custody in the case he told other inmates at the Butler County Jail that he intended to harm a law enforcement officer who investigated the case unless his case was resolved the way he wanted.
Co-defendants include: Yan Zhang, 50, Wichita, Kan., who was sentenced to time served and five years supervised release.
Xinqing Tian, 45, who was sentenced to time served and two years supervised release.Grissom commended the Wichita Police Department and Assistant U.S. Attorney Jason Hart for their work on the case.
Man Pleads Guilty to Bank FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Tarrek Williams, 27, of Buffalo, NY, pleaded guilty before U.S. District Court Chief Judge William M. Skretny, to bank fraud. The charge carries a maximum penalty of 30 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Marie P. Grisanti, who is handling the case stated that between September 21, 2011 and July 28, 2013, the defendant, was involved in a scheme to defraud First Niagara Bank. As part of the scheme to defraud, the defendant deposited false and fraudulent checks so others involved in the scheme to defraud could withdraw proceeds from that check before the bank realized that there was insufficient funds to cover that check. The total loss to First Niagara for these checks is $14,185.06.
Sentencing is scheduled for December 17, 2014 at 11:00 a.m.
The plea was the culmination of an investigation on the part of Special Agents of the Postal Inspection Service under the direction of Shelly Binkowski, the Inspector in Charge of the Boston Division.Local Woman Indicted on Health Care Fraud ChargesRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Lisvet Martinez (42, Tampa) with twelve counts of health care fraud and two counts of making false statements in connection with health care matters. If convicted on all counts, she faces a maximum penalty of twenty years in federal prison on the health care fraud charge and five years on each of the false statement offenses. The indictment also notifies Martinez that the United States intends to seek a forfeiture money judgment in the amount of at least $251,650.00, which is alleged to be traceable to proceeds of the offense.
According to the indictment, Martinez operated Lissmart Medical Supply and Lissmart Pharmacy. Martinez fraudulently billed Medicare and Medicaid for enteral nutrition services and supplies for beneficiaries who are not intubated and, therefore, not qualified to receive these services. Instead, Martinez provided oral nutrition products, like Boost, that are normally available at retail locations, and billed Medicare and Medicaid by submitting false documentation that these services were medically necessary and that she had the medical documentation of their intubated condition, when she did not. It is further alleged that Martinez also fraudulently billed Medicare Part D and Medicaid for prescriptions that were not prescribed by a physician, not medically necessary, and not supplied to Lissmart Pharmacy.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Medicaid Fraud Control Unit of the Florida Attorney General’s Office. It is being prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.
Lansing Area Doctor Sentenced to Prison for Accepting Kickbacks for Medical Referrals and Not Reporting Cash Income from Signing Medical Marijuana CertificationsRead the Press Release
Dr. Shannon Wiggins also ordered to forfeit her two medical offices, a 2009 Jaguar, and a 2006 Cadillac Escalade.
GRAND RAPIDS, MICHIGAN – United States District Judge Robert Holmes Bell sentenced Dr. Shannon Wiggins, 45, of Okemos, Michigan to two years of imprisonment on charges of receipt of health care kickback payments and falsifying an income tax return, U.S. Attorney Patrick A. Miles, Jr. announced today. The convictions arise from an Indictment which charged that between January 2004 and April 2011 Dr. Wiggins conspired with her husband, Mohamad Abduljaber, to receive kickbacks for referring patients for electrodiagnostic testing. Dr. Wiggins also admitted signing a false tax return which did not accurately disclose cash income that she earned from signing medical marijuana certifications. Abduljaber has entered guilty pleas to the same charges and awaits sentencing on October 2.
Judge Bell also ordered Dr. Wiggins to pay $285,781 in restitution to Medicaid and the IRS and to forfeit $550,000, including Dr. Wiggins’s former medical offices at 4415 Grand River Ave. and 2310 E. Michigan Ave. in Lansing, a 2009 Jaguar, and a 2006 Cadillac Escalade. Judge Bell previously sentenced the physical therapist who paid the kickback payments, Chyawan Bansil, to 13 months of imprisonment for billing insurance companies for the same electrodiagnostic testing, which he admitted he never actually performed. The U.S. Attorney’s Office previously collected $350,000 in restitution for Blue Cross Blue Shield of Michigan, $2.25 million in monetary damages on behalf of Medicare, and $150,000 in forfeiture from Mr. Bansil.
The case against Dr. Wiggins resulted from a joint investigation conducted by the Lansing Police Department, IRS-Criminal Investigation, Blue Cross Blue Shield of Michigan, the U.S. Department of Health and Human Services Office of Inspector General, and the Michigan Attorney General’s Office. The kickback scheme was initially discovered by officers from the Lansing Police Department and personnel from Blue Cross and Blue Shield of Michigan who were investigating prescription drug diversion in Lansing, Michigan. After undercover Lansing police officers were referred for suspicious electrodiagnostic testing by Bansil at Dr. Wiggins’s office, federal investigators examined the medical records as well as the financial records of Mr. Bansil and confirmed that Bansil was billing for services that he did not perform. Investigators further determined that Bansil was paying Dr. Wiggins and Abduljaber illegal kickback payments to refer patients for the purported testing.
In its sentencing memorandum, the Government argued that such kickback payments caused Dr. Wiggins to increase her Medicare referrals for electrodiagnostic testing from 24 tests per year to more than 1,600 tests per year. Judge Bell noted that the country is in the midst of a “prescription drug epidemic” and emphasized that the receipt of kickback payments for referring medical tests is “unlawful and unprofessional.” As part of her sentence, Dr. Wiggins was also ordered to serve three years of supervised release following her incarceration. She will also be excluded from participating with Medicare and Medicaid for a minimum of five years.
“The payment and receipt of illegal kickbacks distorts the motives of health care professionals and causes unnecessary testing and expenses which increases everyone’s costs,” U.S. Attorney Miles said. This office will continue to pursue criminal and civil proceedings, employ the resources of our law enforcement and private insurance partners, and protect the public against fraud. “Medical practitioners who exploit patients and public or private health care insurance providers for unlawful and selfish financial gain face significant criminal charges and civil remedies. As this case demonstrates, those who attempt to defraud the system through illegal kickback arrangements will suffer the specter of incarceration, treble damages, civil penalties, forfeiture, and future exclusion from participating with Medicare and Medicaid.”
“Paying or receiving kickbacks in exchange for the referral of Medicare or Medicaid patients is illegal,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The payment of kickbacks leads to overutilization, corruption of medical decision-making and increased program costs. Allegations of such conduct will be aggressively investigated by the OIG and our law enforcement partners to ensure that those who are unjustly enriched by these schemes are held accountable.”
“The fraud perpetuated by Shannon Wiggins and her husband, Mohamad Abduljaber, was rampant and clearly shows that they were driven by greed to use her medical license to dramatically increase their income, rather than to provide medical care to the community. IRS-CI will continue to work with our law enforcement partners to strike back at those who commit health care fraud,” said Acting Special Agent in Charge Jarod Koopman.
This case was prosecuted by Assistant U.S. Attorneys Raymond E. Beckering III and Adam Townshend and jointly investigated by the Lansing Police Department, Blue Cross Blue Shield of Michigan, HHS-OIG, IRS-CID, and the Michigan Attorney General’s Office.
END
Kennewick Man Sentenced for Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
Spokane – Today, Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Jerry Alan Reis, a resident of Kennewick, Washington, was sentenced after having pleaded guilty to Possessing a Firearm in Furtherance of a Drug Trafficking Crime. Senior United States District Court Judge Edward F. Shea sentenced Reis to a 180 month term of imprisonment, to be followed by a 60 month term of court supervision following his release from federal prison.
The indictment alleged that, on December 27 of 2013, Reis knowingly possessed a Sig Sauer .40 caliber handgun during and in relation to the crime of Possession of Controlled Substance with Intent to Distribute, which is also a federal crime. According to information disclosed during the court proceedings, the investigation began when members of the Richland Police Department responded to a location in Richland, Washington where they located and arrested Reis. In Reis’ backpack officers located the loaded handgun, an electronic scale with residue, and 17.1 grams of 99.4% pure methamphetamine.
Michael C. Ormsby said, “The vigorous investigation and prosecution of firearms-related crimes is a top priority for law enforcement officers and the United States Attorney’s Office in the Eastern District of Washington, particularly when, as in this case, a firearm is possessed in furtherance of a drug trafficking crime. Richland Police Department Task Force Officers and ATF Special Agents are commended for their strong working partnership, which is evidenced by the successful prosecution of this case. As this case reflects, there are stiff penalties associated with the commission of firearm-related crimes.”
The investigation of this matter was conducted by the Richland Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Alexander C. Ekstrom, an Assistant U.S. Attorney for the Eastern District of Washington and Kristin M. McRoberts, a Special Assistant U.S. Attorney for the Eastern District of Washington.
14-CR-6009-EFS-1
Jury Convicts Nederland Man in Orange County Drug ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 40-year-old Nederland, Texas man has been convicted of drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Stephen Shane Hall, also known as Shane Hall, was found guilty by a jury of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and being a felon in possession of a firearm. The verdict was returned late Thursday, August 21, 2014 following a three-day trial before U.S. District Judge Marcia Crone.
According to information presented in court, from February 2013 to August 2013, law enforcement officers investigated Hall and others regarding the distribution of methamphetamine in the Orange County area. On Aug. 31, 2013, a search warrant was executed at a residence on Spooner Road in Orange County, Texas. During the search, 57 grams of methamphetamine were discovered as well as many items relating to the distribution of narcotics. Officers also located three firearms inside the residence and garage area. A federal grand jury returned an indictment on Nov. 6, 2013, charging Stephen Shane Hall, Misty Hall, Kevin Trent Portie, and Scott Robicheaux with federal drug trafficking violations. Misty Hall, Portie, and Robicheaux have already pleaded guilty and are awaiting sentencing.
Stephen Shane Hall faces a mandatory sentence of life in federal prison. A sentencing date has not been set.
The case was investigated by the Orange County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Drug Enforcement Administration, and the Beaumont Police Department. This case is being prosecuted by Assistant U.S. Attorney Michelle Englade and Special Assistant U.S. Attorney Russell James.
Corrected 8/25/2014
Judge Gives Berks County Businessman 46 Month Sentence for Tax CrimesRead the Press Release
PHILADELPHIA - Harvey G. Bitler, Sr., 57, of Shillington, PA, was sentenced today to
46 months in prison and ordered to pay more than $5 million in restitution for failing to pay over to the government income taxes, Social Security taxes and Medicare taxes withheld from his employees’ paychecks. He was ordered to surrender October 10, 2014, to begin serving his sentence.Bitler was the owner of Big H Farms and BH Farms in Berks County, Pennsylvania. Big H Farms provided labor for mushroom growing facilities and BH Farms employed salaried employees associated with the operation and management of Big H Farms. The companies withheld Medicare and Social Security taxes (FICA taxes) and income taxes from their employees’ paychecks but, between 2007 and 2012, Big H made no payments to the Internal Revenue Service of these withheld taxes. Between 2008 and 2012, BH Farms also failed to pay over all the taxes withheld in the first quarter of 2008, and made no payments to the Internal Revenue Service for the remaining quarters of those years. In total, for these periods, Bitler withheld but failed to pay a total of $4,552,486.71.
U.S. District Court Judge Jeffrey L. Schmehl ordered restitution to the IRS, including interest, in the amount of $5,078,897.06 million, a $100 special assessment, and three years of supervised release.
The case was investigated by the Internal Revenue Service Criminal Investigations with the assistance of revenue agents and revenue officers with the Small Business and Self-Employed Division of the Internal Revenue Service. It is being prosecuted by Assistant United States Attorney Albert S. Glenn.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Illinois Woman Pleads Guilty to Travelling Interstate to Promote Heroin TraffickingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Mexican national who was residing in Illinois at the time of her arrest, pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani to interstate travel in aid of a drug trafficking conspiracy.
According to United States Attorney Peter Smith, the defendant, Maria Pina, age 44, admitted to transporting heroin from Illinois to Pennsylvania on February 12, 2014.
Pina was charged in an Information filed on June 22, 2014. The charge against Pina resulted from an investigation by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the Pennsylvania State Police, and Berks County Detectives.
Pina faces a potential maximum sentence of five years in prison and a $250,000 fine.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Identity Theft Ring Members Sentenced to Federal PrisonRead the Press Release
United States Attorney James L. Santelle of the Eastern District of Wisconsin announced that Verita Hines-Flagg (age: 54) of Belleville, MI and Benjamin Hines (age: 29) of Detroit, MI were both sentenced to federal prison for their role in an identity theft ring which operated out of Michigan. On August 19, 2014, Benjamin Hines (Hines) was sentenced to 18 months in federal prison for conspiracy to commit mail and wire fraud followed by three years of supervised release. On August 21, 2014, Verita Hines-Flagg (Hines-Flagg) was sentenced to three years in prison for conspiracy to commit mail and wire fraud followed by a two year consecutive sentence for aggravated identity theft, for a total sentence of five years.
According to information released in court, in October 2012, the Brown Deer Police Department was notified by the Kohl’s Department store that two individuals had opened a $1,000 line of credit in an apparent identity theft. Loss prevention personnel in the store witnessed the account opening, the use of the suspicious identification document, and observed the individuals purchase a large amount of merchandise totaling approximately $1,000 immediately after opening the account. The items they purchased included several cell telephones and other items easily re-sold for profit.
When officers arrived they observed a Lincoln car with out-of state plates in the parking lot, blocking traffic. The driver was identified as Hines. Hines-Flagg was identified as the passenger in the vehicle. Both Hines-Flagg and Hines were taken into custody on theft charges. The Lincoln they were driving was a brand new 2012 Luxury Lincoln and was valued at over $50,000. The investigation of the Lincoln determined that the vehicle was a fraudulently leased vehicle and the lessee listed on the Illinois registration was a victim in the identity theft scheme. During the same time period, four other luxury cars were also purchased by the co-conspirators, all of which were purchased by the conspirators using the stolen identities of various crime victims.
Evidence in this case indicated that Hines-Flagg and Hines were working with members of the conspiracy to sell the five stolen vehicles. The total value of the five stolen vehicles was over $300,000. The Lincoln’s contents and personal property of Hines-Flag and Hines were inventoried and contained five fake Michigan driver’s licenses, the personal identifying information of several identity theft victims, and over $20,000 of fraudulently purchased merchandise from various retails stores in the Eastern District of Wisconsin.
The investigation determined that Hines-Flagg and Hines traveled to Wisconsin from Detroit, Michigan in the stolen Lincoln with the intent to obtain property and return to Michigan where the defendants and their co-conspirators intended to sell the property.
The case was investigated by the United States Postal Service, Homeland Security Investigations, the Wisconsin State Department of Justice, and the Brown Deer Police Department. The case was prosecuted by Assistant United States Attorney Karine Moreno-Taxman.Humble Man Sentenced for Multiple Convictions in Health Care Fraud ConspiracyRead the Press Release
HOUSTON – Lawrence Tyler, 42, has been ordered to prison for six years following his convictions of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering, announced United States Attorney Kenneth Magidson. A Houston jury convicted Tyler on May 12, 2014, following five days of trial and less than four hours of deliberation.
Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, handed Tyler a total of 72 months in federal prison. He was further ordered to pay a $1,238,823.85 in restitution and will also be required to serve a term of three years of supervised release following completion of the prison term.
Tyler, of Humble, ran a durable medical equipment company called 1866-ICPayday.com from 2006 to 2008.
The evidence at trial showed that between January 2007 and December 2008, Tyler engaged in a scheme to defraud Medicare and Medicaid. He falsely billed Medicare and Medicaid for so-called “ortho kits” which consisted of an assortment of various back, knee, ankle, wrist and shoulder braces. Tyler allegedly billed for equipment that was never delivered, billed for equipment using prescriptions from a physician who never treated the patients and upcoded - billed for a higher reimbursed brace but delivered a cheaper brace that either did not fit the billing code or did not qualify for any Medicare reimbursement. During the conspiracy, Tyler submitted approximately $2.4 million in claims for durable medical equipment and was paid approximately $1.2 million by Medicare and Medicaid.
The evidence at trial also showed that Tyler paid kickbacks to a recruiter named Birdie Leroy Revis in exchange for beneficiary information and false prescriptions issued by Revis’ cousin, Dr. John Perry. Many of the beneficiaries testified that they did not know Perry and had never been treated by him. Revis was convicted of illegally receiving kickbacks, while Perry was convicted of conspiracy to commit health care fraud in separate cases.
In addition, the evidence showed Tyler conducted a monetary transaction in criminally derived proceeds when he withdrew approximately $140,000 from Wachovia Bank. The monies were proven to be the proceeds of the health care fraud conspiracy. Additionally, Tyler used these funds to purchase a house in Humble which the United States plans to forfeit in order to repay Medicare and Medicaid for the fraudulently paid claims.Tyler will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was the result of a joint investigative effort of the FBI, the Texas Attorney
Homestead Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that Mark Anthony Dacres, Jr., 30, of Homestead, was sentenced today before U.S. District Judge Ursula Ungaro to 81 months in prison, to be followed by three years of supervised release. Dacres was also ordered to pay $34,920.00 in restitution.
Dacres previously pled guilty to one count of possessing fifteen or more unauthorized access devices (social security numbers), in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, special agents executed a search warrant at the residence where Dacres stayed and found numerous prepaid debit cards, printed lists, handwritten notes/papers and books containing the names, date of births, and social security numbers of at least 1,750 individuals. Eighty-five tax returns were filed from the IP address registered to the residence using the names and social security numbers of individuals found on the printed lists and handwritten notes/papers. IRS-CI special agents contacted six of these eighty-five taxpayers and all six taxpayers stated that they did not know Dacres, that they did not authorize Dacres to possess their names, date of births, and social security numbers, and that they did not authorize Dacres to file federal tax returns for the 2013 tax year using their names and social security numbers.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Heber Springs Man Pleads Guilty to Federal Drug Conspiracy ChargeRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas and Raymond R. Parmer, Jr., Special Agent in Charge of Homeland Security Investigations (HSI) New Orleans, announced that Christopher Arnold Hogan, 47, of Heber Springs pleaded guilty to a federal conspiracy charge related to possession with intent to distribute of 246 grams of Methylone, commonly referred to as “bath salts.”
“Bath salts, the common name for the drugs Christopher Hogan was distributing in the Heber Springs area, are extremely dangerous drugs,” stated Thyer. “They mimic the effects of commonly recognized drugs, such as methamphetamine and MDMA, also known as Ecstacy, but they are more potent and have a greater effect on the user. Through the coordinated efforts of the Cleburne County Sheriff’s Office, Homeland Security Investigations and the United States Postal Inspection Service and the prosecutors in our office, this case has dismantled a drug distribution ring that was threatening the lives of teenagers and young adults in and around Heber Springs.”
“The illegal importation and distribution of bath salts is not only dangerous due to the drug itself, but also because users face potentially deadly contamination from toxic substances added by unregulated backroom manufacturers,” said Raymond R. Parmer Jr., special agent in charge of HSI New Orleans. "Bath salts users frequently require emergency medical treatment, and HSI along with its law enforcement partners will continue to aggressively investigate and seek prosecution of anyone seeking to illegally import and distribute these dangerous illegal drugs."
On July 11, 2012, a grand jury indicted Hogan and five other defendants in an eight count Indictment charging conspiracy as well as possession with intent to distribute and distribution of Methylone, Pentedrone, MDMA, and MDPV. These synthetic narcotics are Schedule I controlled substances or analogs of Schedule I controlled substance, which are illegal to possess and which have no legitimate consumer use.
At the plea hearing before Judge Susan Webber Wright, Assistant United States Attorney Anne Gardner stated that in June, 2011, the Cleburne County Sheriff’s Office was investigating the distribution of synthetic narcotics, generally called “bath salts” in the Heber Springs area. The Sheriff’s Department determined the source for the bath salts was Hogan. In July, 2011, a search warrant was obtained for Hogan’s residence, and evidence of synthetic drug manufacturing, specifically a synthetic cannabinoid, JWH-018, was seized. Hogan was charged in state court and made bond.
In January, 2012, the Department of Homeland Security Investigations intercepted a package in the mail coming from China addressed to Hogan. The package contained Pentedrone, a controlled substance analog of methcathinone. As the investigation continued, it was discovered that another package from China addressed to Hogan had been seized in San Diego, California in June, 2011, during a routine border interdiction of suspicious packages. This package was found to contain 246 grams of Methylone. HSI continued their joint investigation with the Cleburne County Sheriff’s Office and the United States Postal Inspection Service throughout the Spring of 2012, with confidential informants making controlled purchases of Pentedrone from Hogan and others who were obtaining the substance from Hogan.
A number of Hogan’s distributors were charged and pleaded guilty in this case. AUSA Gardner stated that if the charges against Hogan were to be tried in court, the co-defendants would testify that Hogan was receiving distributable quantities of controlled substance analogs that he ordered over the Internet from China. They would further testify that Hogan discussed with them that as long as the substance had a label stating it was not for human consumption, that they could not be prosecuted for distributing the substance. The witnesses would testify that they knew, and the defendant knew, that in fact the substances were intended to be ingested by the people who purchased them to get high.
Hogan faces maximum penalties of not more than 20 years imprisonment, a fine of not more than $1,000,000, and at least 3 years of supervised release following release from prison.
This case was investigated by the Cleburne County Sheriff’s Office, Homeland Security Investigations and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Anne Gardner.
Guatemalan Man Pleads Guilty to Conspiracy to Fraudulently Obtain Counterfeit Green Cards and Social Security CardsRead the Press Release
ALEXANDRIA, Va. – Mauricio Florian-Polanco, a 39-year-old illegal immigrant from Guatemala who was residing in Manassas, Virginia, pleaded guilty yesterday to conspiracy to commit immigration document fraud.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Clark E. Settles, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations Washington (HSI); and Douglas Keen, Chief of the City of Manassas Police Department, made the announcement after the plea was accepted by U.S. District Judge T.S. Ellis, III.
Florian-Polanco faces a maximum penalty of five years in prison when he is sentenced on Dec. 12, 2014.
In a statement of facts filed with the plea agreement, Florian-Polanco admitted to conspiring with others to falsely make Social Security cards and alien registration receipt cards, more commonly known as Green Cards, for individuals whom he believed were illegal immigrants on at least 50 occasions. In furtherance of the conspiracy, Florian-Polanco would meet with individuals who were looking to obtain counterfeit documents, including government agents acting in an undercover capacity, and take their biographic information. Florian-Polanco then would meet with a co-conspirator who would, in turn, create the counterfeit documents.
This case was investigated by ICE-HSI and the City of Manassas Police Department, with assistance from the Northern Virginia Gang Task Force. Special Assistant U.S. Attorney C. Alexandria Bogle is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-283.
Former Little Rock Attorney Sentenced to 60 Months in Prison for Mail Fraud and Tax EvasionRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas; Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office; and David T. Resch, Special Agent in Charge of the Little Rock Field Office of the Federal Bureau of Investigation (FBI) announced today that United States District Judge Brian S. Miller sentenced former Little Rock lawyer David Patrick Henry, Sr., 71, to 60 months in prison to be followed by two years of supervised release. He was also ordered to pay restitution of $1,021,133.74. $862,086.74 of the restitution is to be paid to the Joe Thomas Swaffar Irrevocable Insurance Trust and $159,047.00 is to be paid to the Internal Revenue Service. An agreement was reached to pursue the forfeiture of his property through civil action.
“This case illustrates that our office will prosecute those who steal the financial security of others, no matter their profession or standing in the community,” stated Thyer. “Mr. Henry used his profession as an attorney to hide his thievery from a family who trusted him. Although, elaborate, he ultimately could not hide his scheme from the trust beneficiaries. Now, his future is 60 months in federal prison and a requirement to pay back the money he stole from this family and the money he owed the IRS.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with other people’s money as well as skirt their tax obligations,” said Christopher A. Henry, IRS Criminal Investigation, Special Agent in Charge, Nashville Field Office. “Mr. Henry's actions not only caused negative ramifications to those financially connected to him, but also the honest taxpayer when he committed significant tax fraud violations as detailed in the indictment. Tax crimes have erroneously been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to evade our tax system.”
“David Henry is a criminal who stole from a widow and her children. We appreciate our partnership with the United States Attorney’s Office and the IRS Criminal Investigation Division as we worked together to bring him to justice,” said FBI SAC Resch.
On March 21, 2014, a federal jury found David Patrick Henry, Sr. guilty of 25 counts of mail fraud and three counts of tax evasion. The jury also found that his home located at lot 38, Pleasant Valley Estates in Little Rock, Arkansas was subject to forfeiture. According to court records, in March 2002, the Joe Thomas Swaffar Irrevocable Insurance Trust was set up naming Henry, Sr. as Trustee. The Trust was to be funded entirely with the proceeds of insurance policies totaling approximately $1,641,614.12 at the time of the death of Joe Thomas Swaffar. The beneficiaries of the Trust were Swaffar's family members, including his wife and daughter. As Trustee, Henry, Sr. devised, executed and participated in a scheme to defraud the beneficiaries of the Trust by means of false and fraudulent pretenses and representations depriving them of money and the right to control disposition of their money. It was part of the scheme to defraud that Henry, Sr. set up various bank accounts to which only he had access and in which he deposited funds from the proceeds of the Swaffar life insurance policies. Of these accounts, none of the bank statements were mailed to or could be accessed by the Trust beneficiaries. Therefore, the beneficiaries did not know how much money was received from the proceeds of the life insurance policies. The only person authorized to write checks from these accounts was Henry, Sr. Because the Trust beneficiaries did not receive those bank statements, they did not know that Henry, Sr. was writing checks for his benefit and the benefit of his family, including paying for Henry, Sr.’s personal health insurance, personal electric bills, cable television bills, personal mortgage notes for both of his sons, and the purchase of a vehicle for one of Henry, Sr.'s sons, among other things. Henry, Sr. claimed to have paid himself a salary of $2,000 per month for services allegedly performed as Trustee. However, the Trust document does not provide for a salary for the Trustee. Henry, Sr. performed no financial accounting and the Trust beneficiaries were not advised nor did they agree to the salary Henry, Sr. claimed to have paid himself.
In addition, Henry filed joint federal income tax returns with his spouse for calendar years 2005, 2006, and 2007 that failed to report all his taxable income and tax due and owing. For 2005, Henry reported that his taxable income was $0 and tax due and owing was $0, when he knew his actual taxable income for that year was $400,063, resulting in tax due and owing of $114,085. For 2006, Henry reported taxable income of $1,037 when he actually had $55,871 in taxable income for that year, resulting in $7,626 in tax due and owing. Henry filed his 2007 return reflecting taxable income of $1,199, when he knew his actual taxable income was $81,211 for that calendar year, resulting in $13,154 in tax due and owing.
This investigation was conducted by IRS Criminal Investigation and the Little Rock Field Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Angela Jegley.
Former Government Employee Sentenced to Jail for Stealing over $114,000 from Citizen’s Bank AccountDefendant Gained Access to Bank Information While Working at the D.C. Office of Tax and RevenueRead the Press Release
WASHINGTON - Catyondia Ballard, 48, a former employee of the District of Columbia Office of Tax and Revenue, was sentenced today to 16 weekends in jail, to be followed by 180 days of home detention, for the theft of over $114,000 from the bank account of a retired military member, announced U.S. Attorney Ronald C. Machen Jr. and Blanche L. Bruce, Interim Inspector General for the District of Columbia.
Ballard, of Bowie, Md., pled guilty in May 2014 in the U.S. District Court for the District of Columbia to one count of wire fraud. She was sentenced by the Honorable Judge Rudolph Contreras, who also ordered that she be placed on five years of probation. The judge also ordered Ballard to pay full restitution of $114,166 to the victim.
According to the government’s evidence, Ballard became familiar with the victim through her job at the District of Columbia Office of Tax and Revenue. While there, Ballard gained access to the victim’s personal biographical information, as well as the victim’s bank account information. Using the victim’s information, Ballard began wiring funds from the victim’s bank account directly to Ballard’s account at a loan servicing company in order to pay off Ballard’s mortgage. From March 2007 through April 2010, Ballard directed a total of $114,166 of the victim’s funds to Ballard’s account without the victim’s permission.
In announcing the sentence, U.S. Attorney Machen and Interim Inspector General Bruce commended the work of those who investigated the case from the District of Columbia’s Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Donna Galindo, Corinne Kleinman, and Angela Lawrence; and Assistant U.S. Attorney Richard DiZinno, who investigated and prosecuted the matter.
14-182Former Garland, Texas, Man Indicted for Aiming A Laser Pointer at an AircraftRead the Press Release
DALLAS —A federal grand jury has indicted Steven Alexander Chavez, Jr., 23, on one count of aiming a laser pointer at an aircraft, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, special agents with the FBI arrested Chavez in Lubbock, Texas, where he had recently relocated from Garland, Texas.
According to the indictment, returned earlier this week in Dallas, on or about August 24, 2013, in the Dallas Division of the Northern District of Texas, Chavez knowingly aimed the beam of a laser pointer at a Texas Department of Public Safety (DPS) helicopter.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the maximum statutory penalty is five years in federal prison and a $250,000 fine.
The FBI, Texas DPS and Garland Police Department are investigating. Special Assistant U.S. Attorney Lara Burns is prosecuting.
Florida Man Sentenced for Filing False Claims with Internal Revenue ServiceRead the Press Release
A Lighthouse Point, Florida, man was sentenced today to serve 12 months and one day in prison for filing a false claim for a tax refund with the Internal Revenue Service (IRS), Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney Wifredo Ferrer for the Southern District of Florida announced.
Bradley Bowman was also ordered to pay $300,403 in restitution to the IRS and to serve three years of supervised release. According to court documents, in 2009, Bowman submitted to the IRS a false individual income tax return for tax year 2005 that fraudulently claimed a refund of $299,024. Bowman engaged Penny Jones, who is currently serving 12 years in prison in a related case involving more than 380 false returns, to prepare this false return. Bowman fraudulently claimed his gross income was $447,036 and then falsely claimed that all of his income was withheld to satisfy his income tax liabilities. Bowman pleaded guilty to this charge on May 27.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Trial Attorney Greg Bailey of the Tax Division and Assistant U.S. Attorney Bertha Mitrani for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Florida Man Sentenced for Filing False Claims with Internal Revenue ServiceRead the Press Release
A Lighthouse Point, Florida, man was sentenced today to serve 12 months and one day in prison for filing a false claim for a tax refund with the Internal Revenue Service (IRS), U.S. Attorney Wifredo Ferrer for the Southern District of Florida and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division announced.
Bradley Bowman was also ordered to pay $300,403 in restitution to the IRS and to serve three years of supervised release. According to court documents, in 2009, Bowman submitted to the IRS a false individual income tax return for tax year 2005 that fraudulently claimed a refund of $299,024. Bowman engaged Penny Jones, who is currently serving 12 years in prison in a related case involving more than 380 false returns, to prepare this false return. Bowman fraudulently claimed his gross income was $447,036 and then falsely claimed that all of his income was withheld to satisfy his income tax liabilities. Bowman pleaded guilty to this charge on May 27.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani for the Southern District of Florida and Trial Attorney Greg Bailey of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Felon in Possession Sentenced to Three Years in PrisonRead the Press Release
CORPUS CHRISTI, Texas – Carlos Luna, 45, of Corpus Christi, has been handed a 36-month sentence for his conviction of possession of a firearm by a convicted felon, announced United States Attorney Kenneth Magidson. Luna entered a plea of guilty on Thursday, Aug. 7, 2014.
Today, U.S. District Judge Nelva Gonzales Ramos sentenced Luna to the 36-month-term which will be followed by a three-year-term of supervised release.
At the plea hearing, Wallace admitted that in September 2011, he facilitated the sale of three stolen handguns to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The guns had been reported stolen in vehicle burglaries which occurred throughout the Corpus Christi area. The undercover purchases were made on Sept. 13, Sept. 14 and Sept. 27, 2011, at a residence in Corpus Christi and were captured in audio and video recordings.
Luna had admitted he obtained the firearms by breaking into unattended vehicles on Ocean Drive. With previous convictions for assault with contact and aggravated assault in Nueces County, he is prohibited from possessing a firearm.
Luna has been in custody since his arrest on Aug. 23, 2012, where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the ATF and prosecuted by Assistant United States Attorney Sam Brown IV.Eleven Alleged Members and Associates of the Young Melph Mafia Indicted on Federal Drug and Gun ChargesRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that JEFFREY WILSON, age 29; JACOBI BOYD, a/k/a “CO,” age 22; ALFRED COBBINS, a/k/a “AL,” age 22; JAWAN FORTIA, a/k/a “TITTIE,” age 21; DEONTRE HILLS, a/k/a “SOULJA,” age 22; DEDRICK KEELEN, a/k/a “ROY,” age 21; RUBEN GEIGER, a/k/a “RUE,” age 21; SHAWN GRACIN, a/k/a “GUNNER,” age 21; DELWIN MCLAREN, a/k/a “POO,” age 22; BRYAN SCOTT, a/k/a “KILLER,” age 20; and DARIUS WILLIAMS, a/k/a “D-MAN,” age 22, all residents of New Orleans, were charged yesterday in a five count superseding indictment which was unsealed today. COBBINS and FORTIA remain at-large and should be considered Armed and Dangerous. Photos of these two defendants are displayed below.
Defendant WILSON had previously been indicted in July 2014 for drug conspiracy and two cocaine distribution counts. The superseding indictment charges all defendants with conspiring to distribute and possess with the intent to distribute 28 grams or more of cocaine base or “crack.” Defendants BOYD, COBBINS, FORTIA, HILLS, KEELEN, GEIGER, GRACIN, MCLAREN, SCOTT, and WILLIAMS, who are part of a Central City gang called “The Young Melph Mafia” or “YMM,” were also charged with conspiracy to possess firearms in furtherance of drug trafficking crimes. The third count charges GRACIN and COBBINS with carrying and discharging a firearm in relation to a drug trafficking crime. The superseding indictment also re-alleges that WILSON distributed a quantity of cocaine hydrochloride on or about May 13, 2014, and that on May 30, 2014, he distributed 28 grams or more of cocaine base or “crack.”
Based upon the ongoing investigation, these defendants, most of whom grew up in and around the former Melpomene Housing Development, engaged in high volume street level drug dealing over the course of several years. During the course of this investigation, it was also determined that the defendants connected to the Young Melph Mafia routinely carried firearms to protect themselves while engaged in distributing illegal narcotics.
If convicted of the drug conspiracy, all defendants face a minimum of five years and a maximum of forty years of incarceration, a fine of $5,000,000 and at least four years of supervised release. If convicted of the gun conspiracy, the named defendants face a maximum of twenty years of incarceration, a fine of $250,000 and up to three years of supervised release.
GRACIN and COBBINS face a minimum of ten years of incarceration to be served consecutively to any other sentence imposed if convicted of carrying and discharging a firearm in relation to a drug trafficking crime. If convicted of the cocaine hydrochloride distribution count, WILSON faces a maximum of twenty years of incarceration, a fine of $1,000,000 and at last three years of supervised release. If convicted of the cocaine base or “crack” distribution, WILSON faces a minimum of five years and a maximum of forty years of incarceration, a fine of $5,000,000 and a minimum of four years of supervised release.
“As alleged, these defendants were responsible for dealing significant quantities of narcotics in their own community, and then using firearms as a means of protecting and enforcing their drug-trafficking enterprise,” state U.S. Attorney Polite. “They all now face the prospect of spending 40 years in prison. Those who are engaging in similar criminal conduct should take note. Our federal, state, and local law enforcement agencies are working in unison to eliminate large-scale drug trafficking and the violence that often accompanies it."
“This indictment is evidence that narcotics and firearms crimes are a dangerous mixture and will not be tolerated in our community,” said New Orleans ATF Special Agent in Charge Phillip Durham. “These crimes inevitably lead to violence. ATF, NOPD and our Multi-Agency Gang Unit partners will continue to combat firearms and narcotics crimes as well as gang activity in order to keep our citizens safe. ”
“Our message in this Group Violence Reduction effort is simple -- our community is demanding that the violence stop,” said Mayor Landrieu. “With this indictment, the Multi-Agency Gang Unit has led to the indictments of 95 individuals associated with 9 groups since the fall of 2012. Through NOLA FOR LIFE, we will continue to focus on keeping our citizens safe, reclaiming our neighborhoods, and offering opportunities to those who want to make better choices.”
"This is a signal to other gangs in New Orleans: If you keep up the violence, we will put you away," said Interim NOPD Police Chief Michael Harrison. "Our Homicide detectives are working closely with the U.S. Attorney’s Office as well as the DA’s Office to unravel complex and very dangerous groups who terrorize our community. Together this team collected the evidence necessary to arrest these gang members, who now face the potential of spending decades in prison."
U.S. Attorney Kenneth Polite, Jr. reiterated that the superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department as partners in the metro area’s Multi Agency Gang Unit. As an integral component of NOLA FOR LIFE’s Group Violence Reduction Strategy, the Multi-Agency Gang (MAG) Unit consists of a partnership with New Orleans Police Department (NOPD); Orleans Parish District Attorney’s Office (DA); Orleans Parish Sheriff’s Office (OPSO); Louisiana State Police (LSP); Parole Board of the Louisiana Department of Corrections; United States Attorney’s Office (USAO); Federal Bureau of Investigation (FBI); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Drug Enforcement Administration (DEA); United States Marshal’s Service (USMS); and the United States Probation & Parole Office for the Eastern District of Louisiana. Valuable assistance to the investigation was provided by the United States Customs and Border Protection (CBP) Air and Marine Division. The case is being prosecuted by Assistant U. S. Attorneys Maurice Landrieu, Jr. and Edward Rivera.
(Download Superseding Indictment )
El Salvador Undocumented Alien Sentenced for Illegal Re-entry into U.S.Read the Press Release
BROWNSVILLE, Texas – Jimmy Stanley Brizuela, 43, has been ordered to prison following his conviction of illegal re-entry after removal/deportation, announced United States Attorney Kenneth Magidson. A jury convicted Brizuela, a citizen of El Salvador, on May 13, 2014, following a two-day trial and approximately two hours of deliberation.
Today, U.S. District Judge Andrew S. Hanen, who presided over the trial, handed Brizuela a total of 30 months in federal prison. As an illegal alien, Brizuela is expected to face deportation proceedings following his release from prison.
Brizuela entered the U.S. near the Rio Grande River area west of Brownsville. He and several others had waded across the river carrying bicycles which they then used to try to elude Border Patrol agents. Upon his arrest, Brizuela was determined to be an undocumented alien and citizen of El Salvador who had entered the U.S. illegally. It was further discovered that he had been previously removed from the country just three weeks before - April 5, 2013.
The jury also heard that he was a convicted felon who had been convicted of several felony offenses including possession of stolen property in 1998.
Brizuela testified at trial and admitted to being a former MS18-Mara Salvatucha gang member. He stated he had joined the gang here in the U.S. several years prior and that he returned to avoid other gangs in El Salvador.
Brizuela will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Customs and Border Protection. Assistant U.S. Attorney Oscar Ponce is prosecuting.
Eight Alleged Members and Associates of the Two Six Nation Street Gang Indicted for Racketeering ConspiracyRead the Press Release
Four members of the Two Six Nation street gang and four of their associates have been indicted for their roles in a racketeering conspiracy spanning more than 20 years, as well as murder and drug trafficking charges.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney David A. Capp of the Northern District of Indiana, Special Agent in Charge Carl Vasilko of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Chicago Field Division, Special Agent in Charge Jack Riley of the Drug Enforcement Administration’s (DEA) Chicago Field Division and Special Agent in Charge W. Jay Abott of the FBI’s Indianapolis Division made the announcement.
“Today’s action reflects the most recent in the department’s continuing efforts to free communities within East Chicago, Gary and Chicago from the scourge of gang violence and drug dealing,” said Assistant Attorney General Caldwell. “Over the years, the U.S. Attorneys’ Offices and the Criminal Division have partnered to use RICO and other federal charges to disrupt and dismantle violent gangs like the Imperial Gangsters, the Latin Kings and now the Two Six Nation. These rolling prosecutions of violent gangs in this region demonstrate the department’s commitment to ensure that no gang is able to maintain a foothold in these communities.”
“This is our third use of the federal RICO statute against violent street gangs operating in northwest Indiana,” said U.S. Attorney Capp. “This indictment was the result of extensive federal-local law enforcement work on both sides of the state border. Our investigations continue and we will not hesitate to utilize the power of the RICO statute to remove these individuals from the streets.”
The second superseding indictment returned by a federal grand jury on Aug. 21, 2014, and unsealed today, charges Adron Herschel Tancil, aka “Awol,” 36, of East Chicago, Indiana; Jesus Valentin Fuentes, aka “Chu Chu,” 39, of Gary, Indiana; Frank Perez Jr., aka “Pumpkin,” 33, of Verona, Pennsylvania; and Anthony Cresencio Aguilera, aka “P-nut,” 35, of Portage, Indiana with RICO conspiracy and conspiracy to engage in drug trafficking, including marijuana, cocaine, crack cocaine, heroin and ecstasy. Also charged in the narcotics conspiracy are Oscar Cosme, aka “Cos,” 41, of East Chicago; Ester Carrera, aka “Mama D,” 61, of Gary; Paul Brock, aka “Big Brock,” 27, of Gary; and Alma Delia Carrera, 28, of Gary. Both the RICO and narcotics conspiracies allege criminal conduct spanning more than 20 years, from January 1992 to the present.
The indictment further charges defendants Tancil, Fuentes and Cosme with the May 16, 2003, homicide of Julio Cartagena in East Chicago. Kiontay Kyare Pennington has already pleaded guilty to murder in aid of racketeering for his role in this homicide.
In addition, the indictment charges Frank Perez with the July 13, 1999, murder of Jose Pena Jr. in Whiting, Indiana.
The charges contained in an indictment are merely accusations and all persons charged are presumed innocent until and unless proven guilty in court.
This case is being investigated by the ATF, DEA, FBI, East Chicago Police Department and Whiting Police Department, with assistance from the Chicago Police Department, Gary Police Department, Hammond Police Department, Highland Police Department and the Lake County High Intensity Drug Trafficking Area task force. Assistance was also provided by the U.S. Attorney’s Office for the Western District of Pennsylvania.
This case is being prosecuted by Assistant U.S. Attorney David J. Nozick for the Northern District of Indiana and Trial Attorney Andrew L. Creighton of the Criminal Division’s Organized Crime and Gang Section.
Dallas Woman Sentenced in Sex Trafficking of Children ConspiracyRead the Press Release
DALLAS — A Dallas woman, who, along with her gang member boyfriend, pleaded guilty in a sex trafficking case earlier this year, was sentenced this morning, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Erin Patton, 24, was sentenced by U.S. District Judge David C. Godbey to 87 months in federal prison and she will be required to register as a sex offender. Patton pleaded guilty in May 2014 to a superseding information charging one count of conspiracy to commit sex trafficking of children. Her boyfriend, Keith Williams, aka “Chucky Blood,” a documented member of the 59 Bounty Hunter Blood criminal street gang, also 24, pleaded guilty in February 2014 to one count of sex trafficking of children. His sentencing is currently set for September 8, 2014; he faces a maximum statutory sentence of life in federal prison.
According to documents filed in the case, in September 2012, after she ran away from home, 14-year-old “Jane Doe” met Erin Patton. Patton let Jane Doe stay with her, and Patton facilitated Jane Doe’s engaging in commercial sex acts by driving her to locations where the acts occurred and providing her a cell phone so she could post her services on “Mocospace” and Backpage.com. Jane Doe gave Patton a portion of the money she earned from engaging in the sex acts.
Again, in November 2012, after she again ran away from home, Jane Doe contacted Patton. This time, both Patton and Williams picked up Jane Doe and posted her availability to engage in commercial sex acts on Backpage.com. While Williams went to serve a jail sentence shortly thereafter, Patton continued facilitating Jane Doe’s commercial sex acts. Jane Doe eventually left.
In April 2013, Jane Doe again contacted Patton and told her she was still in school, but wanted to leave and wanted Patton to pick her up. Patton and Williams agreed to let Jane Doe stay with them, but they told her she was going to have to engage in commercial sex acts, as she had done in the past, to pay for her expenses. Williams and/or Patton drove Jane Doe to meet with customers and Jane Doe gave all the money she earned to Williams and Patton.
On May 4, 2013, officers with the Dallas Police Department (DPD) encountered now 15-year-old Jane Doe, in a car parked in an area known for prostitution. Williams came by shortly thereafter. He admitted knowing she was 15, driving her to meet with customers, and collecting proceeds from her “dates.”
DPD led the investigation, with assistance from the FBI. Assistant U.S. Attorney Cara Foos Pierce prosecuted.
Convicted Felon Sentenced to 27 Years for Sending Firearms to Puerto RicoRead the Press Release
Orlando, Florida – Senior U.S. District Judge G. Kendall Sharp sentenced Luis A. Rivera (47, Orlando) to 27 years in federal prison for possessing a firearm as a convicted felon. Rivera pleaded guilty on May 28, 2014. He was sentenced on August 20, 2014.
According to court documents, Rivera, who has multiple previous drug trafficking convictions, packaged at least twenty firearms to mail to Puerto Rico as part of an illegal firearms trafficking ring. These firearms included a number of "assault" style rifles with high capacity magazines. Due to his prior felony convictions, Rivera was prohibited from possessing a firearm or ammunition under federal law. In addition, his extensive criminal history qualified him for an enhanced sentenced as an Armed Career Criminal.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Vincent S. Chiu. This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
It is another example of ATF’s Frontline Strategy to impact violent crime within our communities.
Colombian Man Sentenced to More Than 6 Years in Federal Prison for Conspiracy to Commit Money LaunderingRead the Press Release
Orlando, FL – U.S. District Judge Paul G. Byron sentenced Luis Alberto Marulanda-Cardona (55, Colombia) to 80 months in federal prison for conspiracy to commit money laundering. As part of his sentence, the court also entered a money judgment in the amount of $969,130 reflecting the proceeds of the charged criminal conduct. Marulanda pleaded guilty on April 7, 2014. He was sentenced on August 21, 2014.
According to court documents, beginning in February 2009, Marulanda had a contract with a Colombian drug trafficking organization, pursuant to which Marulanda’s associates picked up bulk cash in the amount of 100,000€ (Euros) per week in the Netherlands. Two months later, a Drug Enforcement Administration (DEA) confidential source met with Marulanda in Madrid, Spain. Marulanda advised the confidential source that two shipments of cocaine had been seized in Portugal, by Portuguese authorities, and that one of his main associates had been arrested. Marulanda stated that as a result of the seizure and arrests, his operations had been suspended in Spain and Portugal. DEA’s Madrid Country Office confirmed that Portuguese authorities had seized several shipments of cocaine, in the amounts and on the dates consistent with those mentioned by Marulanda. Marulanda then moved his operations to Italy. He told the confidential source that his organization sent cocaine to Rome every week aboard commercial planes and that he would return to Rome where he would pick up a large amount of currency. Marulanda requested that the confidential source meet him in Rome, at which time Marulanda would give the source 650,000€ to be laundered. As part of the conspiracy, Marulanda requested assistance to move the narcotics proceeds, in bulk, through New York City, Atlanta, and Orlando into Panama City, Panama and banks in Hong Kong. The total amount of funds that Marulanda attempted to launder is $2,973,285.
This case was investigated by the DEA’s Orlando District Office, with assistance from DEA’s Rome Country Office, Madrid Country Office, Lisbon Country Office, Bogota Country Office, Hong Kong Country Office and Panama Country Office. It is being prosecuted by Assistant United States Attorneys Christopher LaForgia with assistance from Department of Justice Rome-Attachés William Nardini and Cristina Posa.
Clarke County Woman Sentenced to Five Years of Probation and Ordered to Pay Full Restitution After Guilty Plea to Access Device FraudRead the Press Release
The United States Attorney Kenyen Brown announces that Stephanie Hollifield, a 34 year old resident of Grove Hill, was sentenced today. Mrs. Hollifield pled guilty on May 15, 2014, to unlawfully using the credit cards she stole from the home of her employer. She was sentenced to a five year probationary term and order to pay $2,406.96 restitution.
Officers of the Foley, Alabama Police Department investigated the case and presented it to the U.S. Attorney=s Office for prosecution. The prosecutor assigned to the case is Assistant United States Attorney, Daryl Atchison.
California “Vendor” in Identity Theft and Credit Card Fraud Organization Sentenced to More Than Eight Years in PrisonRead the Press Release
A northern California man who served as an information and document vendor in the identity theft and credit card fraud ring known as “Carder.su” was sentenced yesterday to serve 100 months in federal prison. He was further ordered to pay approximately $50.5 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) in Las Vegas made the announcement. U.S. District Judge Andrew P. Gordon of the District of Nevada imposed the sentence.
“Carder.su is a criminal organization, and we used the same mob-busting laws and investigative techniques we’ve used with other organized crime networks to dismantle the fraud ring,” said Assistant Attorney General Caldwell. “The new face of organized crime is largely cyber-based, and this case demonstrates the department’s ability to pursue members of these organizations wherever we find them.”
“The structure of the Carder.su organization was sophisticated and designed to prevent attack by rival organizations and to avoid detection by law enforcement,” said U.S. Attorney Bogden. “Its members had defined roles and were responsible for the theft of over $50 million. We are working diligently with our law enforcement partners to ensure that the people who commit these high-tech crimes are put out of business.”
“As this multi-year sentence makes clear, individuals like this defendant who traffic in stolen identities and compromised credit card information should expect to face the full weight of the law,” said HSI Assistant Special Agent in Charge Harris. “This type of fraud has reached epidemic proportions and the economic fallout from these crimes affects us all. HSI will continue to work closely with its law enforcement partners to see that those involved are brought to justice.”
Makyl Haggerty, aka “Wave” and “G5,” 24, of Oakland, Calif., admitted in his plea agreement that in December 2009, he became associated with the Carder.su organization, a criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Specifically, Haggerty operated as a vendor on the organization’s websites using the “Wave” and “G5” nicknames, and sold approximately 1,000 counterfeit identification documents and counterfeit credit cards to other Carder.su members. Haggerty manufactured and sold counterfeit driver’s licenses for at least 15 states and British Columbia.
Fifty-six individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 25 individuals have been convicted and the rest are either fugitives or are pending trial. Haggerty pleaded guilty in February to one count of participation in a racketeer influenced corrupt organization.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com .
California “Vendor” in Identity Theft and Credit Card Fraud Organization Sentenced to More Than Eight Years in PrisonRead the Press Release
WASHINGTON – A northern California man who served as an information and document vendor in the identity theft and credit card fraud ring known as “Carder.su” was sentenced yesterday to serve 100 months in federal prison. He was further ordered to pay approximately $50.5 million in restitution.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Daniel G. Bogden of the District of Nevada and Assistant Special Agent in Charge Michael Harris of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE HSI) in Las Vegas made the announcement. U.S. District Judge Andrew P. Gordon of the District of Nevada imposed the sentence.
“Carder.su is a criminal organization, and we used the same mob-busting laws and investigative techniques we’ve used with other organized crime networks to dismantle the fraud ring,” said Assistant Attorney General Caldwell. “The new face of organized crime is largely cyber-based, and this case demonstrates the department’s ability to pursue members of these organizations wherever we find them.”
“The structure of the Carder.su organization was sophisticated and designed to prevent attack by rival organizations and to avoid detection by law enforcement,” said U.S. Attorney Bogden. “Its members had defined roles and were responsible for the theft of over $50 million. We are working diligently with our law enforcement partners to ensure that the people who commit these high-tech crimes are put out of business.”
“As this multi-year sentence makes clear, individuals like this defendant who traffic in stolen identities and compromised credit card information should expect to face the full weight of the law,” said HSI Assistant Special Agent in Charge Harris. “This type of fraud has reached epidemic proportions and the economic fallout from these crimes affects us all. HSI will continue to work closely with its law enforcement partners to see that those involved are brought to justice.”
Makyl Haggerty, aka “Wave” and “G5,” 24, of Oakland, Calif., admitted in his plea agreement that in December 2009, he became associated with the Carder.su organization, a criminal enterprise whose members trafficked in compromised credit card account data and counterfeit identifications, and committed money laundering, narcotics trafficking, and various types of computer crime. Specifically, Haggerty operated as a vendor on the organization’s websites using the “Wave” and “G5” nicknames, and sold approximately 1,000 counterfeit identification documents and counterfeit credit cards to other Carder.su members. Haggerty manufactured and sold counterfeit driver’s licenses for at least 15 states and British Columbia.
Fifty-six individuals were charged in four separate indictments in Operation Open Market, which targeted the Carder.su organization. To date, 25 individuals have been convicted and the rest are either fugitives or are pending trial. Haggerty pleaded guilty in February to one count of participation in a racketeer influenced corrupt organization.
The cases were investigated by HSI and the U.S. Secret Service, and are being prosecuted by Trial Attorney Jonathan Ophardt of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kimberly M. Frayn and Andrew W. Duncan of the District of Nevada.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.com.Buffalo Man Pleads Guilty to Drug Charges Involving Perry Housing ProjectsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Darnell Brown, 30, of Buffalo, N.Y., pleaded guilty to conspiracy to possess with intent to distribute 280 grams or more of cocaine base within the Perry Housing Projects before Chief U.S. District Judge William M. Skretny. The charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life and a $10,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the Perry Projects case, stated that the investigation focused on the drug trafficking activities of Tyshawn Bradley, Darnell Brown, Dallas McLamore and their associates. According to the indictment, Bradley, Brown, McLamore and Eric Ross operated a cocaine base and cocaine distribution organization on a daily basis out of several apartments within the Perry Housing Projects, including apartments within the high-rise towers located at 124 Fulton Street and 305 Perry Street. Law enforcement utilized court ordered wire interceptions, undercover drug purchases, covert cameras and traditional police investigative techniques to infiltrate and dismantle this organization.On April 3, 2013, law enforcement officers executed search warrants at 124 Fulton Street and 305 Perry Street during which they recovered over 300 grams of cocaine base and 700 grams of powered cocaine as well as a firearm.
“As we stated before we will not permit anyone to hurt the safety and security of people living in public housing,” said U.S. Attorney Hochul. “Thanks to this prosecution, children are now safe to play both inside and outside the Perry apartments, while residents can live in peace knowing that Darnell Brown, Eric Ross and others who sold drugs in these units have been convicted. We will continue the success of this case by bringing additional cases against remaining City gangs in the near future.”
Brown was arrested in April 2013 along with 12 others including Tyshawn Bradley and Nannette Brown both of Cheektowaga, N.Y., Darnell Brown, a/k/a D, 29, Dallas McLamore, a/k/a Ice, a/k/a Dal, Brandon Atkins, a/k/a YB, Tashawn Gay, Melvin Tucker, a/k/a Hoff, David Varner, Latifah Donaldson, a/k/a LaLa, Tara Robinson, a/k/a Coek, and Phayon Redmond, a/k/a Booper, all of Buffalo. Brown is the third defendant to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Matthew Renneman, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for January 14, 2015 at 9:00 a.m.Bozeman Man Sentenced for Embezzling over $300,000 from Elderly and Disabled ClientsRead the Press Release
MISSOULA - A Bozeman man was sentenced Thursday for embezzling over $300,000 entrusted to him by the Social Security Administration, the Veterans Administration, the U.S. Railroad Retirement Board, and private funds for 36 individuals needing help with their money by reason of age or disability. William Wise, 50, was sentenced to 30 months in prison and 3 years supervised release. In addition, Wise was ordered to pay $369,582 in restitution. He was also ordered to forfeit $369,582 to the United States.
Wise was sentenced in connection with his May 2014 guilty plea to mail fraud.
In a sentencing memorandum, Assistant U.S. Attorney Chad Spraker told the court that in 1994, William Wise started a consulting business, Walking Cross Incorporated (WCI), with his friend John Heintz. In or about 2000, WCI began providing personal financial services for elderly and disabled clients, including those receiving money from the Social Security Administration (SSA), the Veterans Administration, and the U.S. Railroad Retirement Board. The agencies appointed WCI to act as a representative payee to manage federal money for the benefit of those having difficulty managing their own affairs.
In the Fall of 2007, Audrey Reese became a client of WCI, and Wise had a power of attorney over her financial accounts. Reese died in April 2011. Helen Carey, a family friend of Reese, was appointed as Reese's personal representative. In the process of administering Reese's estate, Carey requested bank records from Wise. Wise did not respond to Carey's multiple requests, so she obtained copies of Reese's bank records directly from the bank. Upon reviewing the records, Carey discovered that Wise had written large checks from Reese's account beginning in fall 2007.
Bank records for WCI show that numerous checks, often in amounts of $1000 or $2000, were drawn from Reese's bank account and deposited into the WCI account. The checks did not bear any indication that they were drawn for Reese's personal expenses and were deposited into the WCI account on days when it was nearly overdrawn. Wise also transferred money from other client accounts into the WCI account during times when it was close to being overdrawn.
After his records were seized through a search warrant, Wise was interviewed in April 2012. Wise told investigators that he used WCI funds to pay several credit cards used for personal expenses. Wise admitted that WCI was not an approved fee-for-service organizational representative payee, which would have allowed WCI to charge clients for administering their benefits. Nevertheless, Wise charged fees to SSA beneficiaries at a rate of $35 a month for clients with Supplemental Security Income and $50 a month for clients with Social Security Disability Insurance. He also stated that when clients had negative balances, other SSA beneficiaries' funds would be used to cover the shortfall.
Wise was interviewed again on December 21, 2012. According to Wise, his misuse of fiduciary funds started before 2000, when he "advanced" approximately $2000 from M.H.'s account to WCI. Wise admitted to using money from the WCI account to send his children to summer camp and purchase catering products for a side business. Wise also stated that his personal living expenses were paid out of the WCI account. When clients asked him questions, he would show them balances when in fact the clients had no money. In total, Wise embezzled $369,582 of his clients' money.
Assistant U.S. Attorney Chad Spraker prosecuted the case. The investigation was collaborative effort between the State of Montana Division of Criminal Investigations; Social Security Administration, Office of Inspector General; Federal Bureau of Investigation, Department of Veteran's Affairs, Office of Inspector General; and the U.S. Railroad Retirement Board, Office of Inspector General.
Bankers and Attorney Sentenced to Prison for Fraud, False Statements, and Making a False Claim against the United StatesRead the Press Release
PANAMA CITY, FLORIDA– Late yesterday afternoon, United States District Judge Richard Smoak sentenced Donald Terry Dubose, a/k/a “Terry Dubose,” 66, of Panama City Beach, Florida, Elwood Ladon West, a/k/a “Woody West,” 40, of Monroeville, Alabama, and Frank Alfred Baker, 62, of Marianna, Florida, to federal prison due to their conviction on charges including conspiracy to commit wire fraud, wire fraud, making false statements, and filing false claims against the Federal Deposit Insurance Corporation (“FDIC”).
Coastal Community Investments (“Coastal”) was a bank holding company that owned Coastal Community Bank, based in Panama City Beach, Florida, and Bayside Savings Bank, based in Port St. Joe, Florida. Coastal Community Bank and Bayside Savings Bank both failed on July 30, 2010. Dubose, the Chairman and Chief Executive Officer of Coastal and the largest Coastal shareholder, was convicted at trial of conspiracy, seven counts of wire fraud, three counts of making false statements to the FDIC, and one count of filing a false claim with the FDIC. Dubose was sentenced to 48 months imprisonment. West, the Chief Financial Officer of Coastal and a Coastal shareholder, was convicted at trial of seven counts of wire fraud, three counts of making false statements to the FDIC, and one count of filing a false claim with the FDIC. West was sentenced to 36 months imprisonment. Baker, the attorney for Coastal and Coastal’s second largest shareholder, was convicted at trial of conspiracy, four counts of wire fraud, one count of making false statements to the FDIC, and one count of filing a false claim with the FDIC. Baker was sentenced to 48 months imprisonment. All three defendants were also sentenced by the Court to serve a period of three years supervised release following their imprisonment, and ordered to pay $4,538,399.09 in restitution to the FDIC.
This case involved a significant fraud committed against the Government relating to the FDIC’s Temporary Liquidity Guarantee Program (TLGP), which was created at the height of the nation’s financial crisis in October 2008. The purpose of the TLGP was to encourage banks to begin lending to one another again, and thereby, help to stabilize the economy. To accomplish this, the TLGP provided that the FDIC would guarantee a loan made by one financial institution (the “lender”) to another financial institution (the “borrower”) in an amount up to 125% of the borrower’s existing unsecured debt, thus assuring repayment to the lender by the borrower or, in the event of default, by the FDIC.
The evidence at trial showed that in October 2008, Coastal had a $3,000,000 secured loan with RBC Bank (USA), which was secured by 100% of the stock of Coastal Community Bank and Bayside Savings Bank (the “RBC Loan”). At that time, the RBC Loan was in default, thus giving RBC the ability to exercise its right to take the pledged stock that secured the loan and take over Coastal Community Bank and Bayside Savings Bank. Under pressure from RBC to repay this debt, the defendants falsely certified to the FDIC that the RBC Loan was unsecured, knowing for a fact that it was instead a secured loan, so that Coastal could get an FDIC-guaranteed loan under the TLGP.
The evidence at trial established that Coastal obtained a $3,750,000 loan from central Florida-based CenterState Bank. Based on the defendants’ misrepresentations, the CenterState Bank loan was guaranteed by the FDIC under the TLGP (the “TLGP Loan”), and as provided by the program, represented 125% of the RBC Loan. Coastal used the proceeds of the TLGP Loan to repay the RBC Loan.
In June 2010, Coastal defaulted on the TLGP Loan, and CenterState Bank subsequently filed a claim with the FDIC for payment of the full amount due on the TLGP Loan, plus interest. The FDIC paid CenterState’s claim by wiring $3,805,833.34 in principal and interest from the FDIC to CenterState.United States Attorney Pamela Marsh stated, “This kind of fraud committed by bank insiders against programs designed to help our citizens will not be tolerated. Not only is such conduct a breach of trust, it is harmful to our communities and our nation. These significant sentences today provide a strong message to those working in the banking industry that insider fraud, deception, and greed will be met with firm justice.”
Matt Alessandrino, Assistant Inspector General for Investigations, FDIC, said, “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the U.S. Attorney's Office and our law enforcement colleagues in investigating the fraud that led to these convictions today. It is particularly troubling to the FDIC OIG when bank insiders and other professionals affiliated with the bank violate the public trust and engage in activities that cause losses to the Deposit Insurance Fund or harm FDIC programs designed to restore the strength of the banking system. We are committed in our efforts to maintain integrity in our nation's banks.”
Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, said, “Bank executives who commit fraud impact the safety and soundness of financial institutions. My office will continue its vigorous pursuit of those who undermine the Federal Reserve’s ability to carry out its supervisory responsibilities over banks and bank holding companies it regulates. I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to these convictions.”
This case was investigated by the Federal Reserve – Office of the Inspector General, the Federal Bureau of Investigation, the FDIC, and the Office of the Special Inspector General for the Troubled Asset Relief Program.
The case was prosecuted by Assistant U.S. Attorneys Gayle Littleton and Ryan Love, with the invaluable assistance of Federal Reserve – Office of the Inspector General Special Agent Amy Whitcomb.
21 August 2014
Wisconsin Man Ordered to Pay Restitution to a Victim in a Child Pornography CaseRead the Press Release
FARGO - U. S. Attorney Timothy Q. Purdon announced that on Aug. 21, 2014, Robert Carey Evans, 58, of Waukesha, Wis., was ordered by U. S. District Judge Ralph R. Erickson to pay $3250 in restitution to a child pornography victim. This is the first time that the Federal District Court in North Dakota has ordered a Defendant to pay restitution to a victim whose abuse appears in the child pornography possessed by the Defendant under the new guidelines set forth by the United States Supreme Court.
In April of this year, the U. S. Supreme Court issued an opinion in Paroline v. United States, holding that possessors of child pornography may be held liable for a victim’s losses caused by the trade of her images. The Supreme Court held that district courts should order restitution where “the defendant possessed a victim’s images” and the “victim has outstanding losses caused by the continuing traffic in those images but where it is impossible to trace a particular amount of those losses to the individual defendant.”
On Oct. 25, 2013, a 12-person jury found Evans guilty of 14 counts of possession of child pornography and he was sentenced to 10 years in prison on Feb. 24, 2014. Following the Defendant’s conviction, the victim submitted a claim for restitution for her losses that she incurred as a result of Evans’ criminal conduct.
This case came to the attention of law enforcement after a North Dakota Bureau of Criminal Investigations special agent assigned to the Internet Crimes Against Children Task Force discovered two computers geographically located in North Dakota that were sharing child pornography in a peer-to-peer network. A search warrant was issued for Evan’s Fargo apartment where task force officers seized more than 13 hard drives and 43 DVDs containing child pornography. A subsequent forensic examination of this media revealed more than 22,000 images and nearly 1400 videos of child pornography.
The case was investigated by Homeland Security Investigations, North Dakota Bureau of Criminal Investigation and the Fargo Police Department.
Assistant U.S. Attorney Jennifer Klemetsrud Puhl prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys’ Offices, Project Safe Childhood in conjunction with Internet Crimes Against Children Task Force (ICAC) help Federal, State and Local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communications systems or computer technology to sexually exploit children. The ICAC Program is a national network of 61 coordinated task forces engaging in proactive investigations, forensic investigations and criminal prosecutions. Project safe childhood also helps to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Westlake Cardiologist Indicted for Performing Unnecessay Medical Procedures and Tests to Overbill Insurers by $7.2 MillionRead the Press Release
A 16-count indictment was unsealed in federal court charging a Westlake cardiologist with performing unnecessary catheterizations, tests, stent insertions and causing unnecessary coronary artery bypass surgeries as part of a scheme to overbill Medicare and other insurers by $7.2 million, law enforcement officials said.
Dr. Harold Persaud, 55, was indicted on one count of health care fraud, 14 counts of making false statements and one count of engaging in monetary transactions in property derived from criminal activity.
The indictment was announced by Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio, Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office, and Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region.
“The charges in this case are deeply troubling,” U.S. Attorney Dettelbach said. “Inflating Medicare billings alone would be bad enough. Falsifying cardiac care records, making an unnecessary referral for open heart surgery and performing needless and sometimes invasive heart tests and procedures is inconsistent with not only federal law but a doctor’s basic duty to his patients.”
“This doctor violated the sacred trust between doctor and patient by ordering unnecessary tests, procedures and surgeries to line his pockets,” Special Agent Anthony said. “He ripped off taxpayers and put patients’ lives at risk.”
“Medical providers have a duty and obligation to provide only those services that are medically necessary and are in the best interests of the patients under their care,” Special Agent in Charge Pugh said. “The conduct alleged in this indictment outlines a disregard for patient needs in exchange for financial gain at taxpayer expense. The OIG will continue to work with our law enforcement and prosecutorial partners to identify fraudulent health care schemes and hold individuals accountable for their actions.”
Persaud had a private medical practice at 29099 Health Campus Drive in Westlake and had hospital privileges at Fairview Hospital, St. John’s Medical Center and Southwest General Hospital, according to the indictment.
Persaud devised a scheme to defraud and obtain money from Medicare and other insurers. The scheme took place between Feb. 16, 2006, through June 28, 2012, according to the indictment.
According to the indictment, his activities in furtherance of the scheme included but were not limited to:
- Persaud selected the billing code for each customer submitted to Medicare and private insurers, and used codes that reflected a service that was more costly than that which was actually performed;
- Persaud performed nuclear stress tests on patients that were not medically necessary;
- He knowingly recorded false results of patients’ nuclear stress tests to justify cardiac catheterization procedures that were not medically necessary;
- Persaud performed cardiac catheterizations on patients at the hospitals and falsely recorded the existence and extent of lesions (blockage) observed during the procedures;
- He recorded false symptoms in patient records to justify testing and procedures on patients;
- Persaud inserted cardiac stents in patients who did not have 70 percent or more blockage in the vessel that he stented and who did not have symptoms of blockage;
- He placed a stent in a stenosed artery that already had a functioning bypass, thus providing no medical benefit and increasing the risk of harm to the patient;
- He improperly referred patients for coronary artery bypass surgery when there was no medical necessity for such surgery, which benefitted Persaud by increasing the amount of follow-up testing he could perform and bill to Medicare and private insurers;
- Persaud performed medically unnecessary stent procedures, aortograms, renal angiograms and other procedures and tests.
As a result of this scheme, Persaud overbilled and caused the overbilling of Medicare and private insurers in the amount of approximately $7.2 million, of which Medicare and the private insurers paid approximately $1.5 million, according to the indictment.
The indictment seeks to forfeit $93,446 in an account in the name of Harold Persaud and $250,188 in an account in the name of Roberta Persaud.
This case is being prosecuted by Assistant U.S. Attorneys Michael L. Collyer and Chelsea Rice following an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services – Office of Inspector General.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Visalia Man Indicted for Sex Trafficking of MinorsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Tyrell Richmond, 31, of Visalia, charging him with three counts of sex trafficking of a minor by force, fraud and coercion, and one count of being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.
According to the criminal complaint, on June 21, 2014, FBI’s Fresno Child Exploitation Task Force and members of the Fresno Police Department’s Vice Unit conducted undercover operations targeting prostitutes who appeared to be underage. During the investigation, they detained three 16-year-old girls, all of whom were runaways, at a motel in Fresno. Further investigation revealed that Richmond had prostituted the girls for about one week, first in Visalia and then in Fresno. The girls were required to turn over to Richmond all money they earned and were not permitted to leave the motel room, other than to get ice.
Richmond is also charged with possession of a firearm by a felon. According to the indictment, he has three prior felony convictions.
This case is the product of an investigation by the Federal Bureau of Investigation, the Visalia Police Department, and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.
Richmond is currently in federal custody. If convicted, he faces a minimum of 15 years and up to life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
United States Attorney’s Office Announces Arrest of Anderson Man in Child Pornography CaseRead the Press Release
Defendant already on parole for child molest case alleged to have possessed
80 images of child pornographyINDIANAPOLIS– Acting United States Attorney Josh J. Minkler today announced the arrest of an Anderson, Indiana, man for possession of child pornography. William L. Ramsey, 55, was arrested by FBI agents at his home yesterday.
“The most vulnerable citizens in our communities deserve the best protection we can provide,” said Acting United States Attorney Josh J. Minkler. “Fighting against sexual predators remains a top priority in our office.”
According to the criminal complaint, detectives from the Indiana State Police (ISP) received information from the National Center for Missing and Exploited Children that Ramsey was in possession of child pornography. Ramsey was on parole from the Indiana Department of Corrections for child molestation at the time. Acting on the information, parole officers went to Ramsey’s house and discovered pornographic material on his personal computer.
The computer equipment and thumb drives were seized and law enforcement obtained a search warrant to further inspect Ramey’s computers. On further investigation, over 80 images were found on his computer depicting minors engaged in explicit sex acts. Child pornography was also located in a folder for the application “My Image Garden” which is a software program used to organize and print photos.
This case was investigated jointly by and the Federal Bureau of Investigation and the Indiana State Police.
Special Agent in Charge W. Jay Abbott thanks the Indiana State Police for their dedicated investigation of this case. “This case exemplifies the strong partnership between the FBI and the Indiana State Police in the pursuit of those who prey on the innocent.”
“Ask the most seasoned police officer what criminal act shakes them to their core and they will tell you it’s crimes against children,” said Indiana State Police Superintendent Doug Carter. “That’s the very reason it is our priority to thoroughly investigate crimes of this nature and partner with federal authorities to seek the maximum prosecution possible of such criminals.”
This arrest comes nearly two years after the United States Attorney’s Office announced a comprehensive crackdown on child exploitation in Indiana. When Operation Community Watch was launched, it allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
According to Senior Litigation Counsel Steve DeBrota, who is prosecuting this case for the government, Ramsey faces a mandatory minimum sentence of 10 years and a maximum of 20 years if convicted.
U.S. Attorney William C. Killian Hosts 2014 Eastern District of Tennessee Reentry Summit in ChattanoogaRead the Press Release
CHATTANOOGA, Tenn. – On Tuesday, August 19, 2014, the 2014 Eastern District of Tennessee Reentry Summit, Working Together for a Solution, was hosted by William C. Killian, U.S. Attorney for the Eastern District of Tennessee, at Chattanooga State Community College.
Approximately 80 individuals from the Tennessee State Department of Corrections, state and local law enforcement, and various service provider representatives attended the summit. Presenters included representatives from Middle Tennessee Community Reentry; Tennessee Mental Health Cooperative; The Next Door, Inc.; Familes Free, Inc.; Veteran’s Justice Outreach, Department of Veteran’s Affairs; Franklin County Drug Court; Tennessee Department of Probation and Parole; U.S. Probation; City of Chattanooga; and U.S Attorney’s Office.
At the direction of the Attorney General, in early 2013 the Justice Department launched a comprehensive review of the criminal justice system in order to identify reforms that would ensure federal laws are enforced more fairly and—in an era of reduced budgets—more efficiently. Specifically, this project identified five goals:
• To ensure finite resources are devoted to the most important law enforcement priorities;
• To promote fairer enforcement of the laws and alleviate disparate impacts of the criminal justice system;
• To ensure just punishments for low-level, nonviolent convictions;
• To bolster prevention and reentry efforts to deter crime and reduce recidivism;
• To strengthen protections for vulnerable populations.
As part of its review, the Department of Justice studied all phases of the criminal justice system—including reentry—to examine which practices are most successful at deterring crime and protecting the public, and which aren’t. The review also considered demographic disparities that have provoked questions about the fundamental fairness of the criminal justice system.
U.S. Attorney Bill Killian said, “The goal of reentry is reduction of crime and recidivism. Due to the knowledge and expertise of the presenters, representatives attending from the various agencies in the state, local and federal criminal justice systems were able to take away useful information that will help them implement reentry objectives."
(Summit Picture and Caption )
Two Sentenced to Prison for Carjacking and Beating Robbery VictimRead the Press Release
ATLANTA - Frederick Todd Anderson and David Starks have been sentenced for an attempted robbery of a business where the business owner was carjacked, abducted, pistol-whipped, and left lying in a stream behind an abandoned house. A third defendant, Deshawn Antoine Mackey, was sentenced previously.
“This was a terrifying and horrific crime that left the victim with lasting injuries. No one should suffer like this victim,” said United States Attorney Sally Quillian Yates. “The defendants struck the victim, stole his car, and beat him to get his ATM PIN number before they finally left him for dead in a stream behind an abandoned house. The lengthy prison sentences the court imposed on Anderson and Starks today are warranted by the savagery of this crime.”
“These individuals acted in a cold and callous manner with little regard for the life of the victim, and today, justice has been served,” said Acting Special Agent in Charge Ryan L. Spradlin, who currently oversees Homeland Security Investigations in Georgia and the Carolinas. “This case highlights the effective collaboration between federal and local law enforcement agencies to ensure that violent criminals are put behind bars.”
“The victim and the community deserve safety and justice,” said Clayton County Police Chief Greg Porter. “We will continue to work hard as everyone in this case did, to ensure justice is served for the victims, and criminals are captured and investigated. Safety is paramount for the Clayton County community. We appreciate the partnerships that existed with this particular investigation.”
According to United States Attorney Yates, the charges and other information presented in court: On March 11, 2013, the three federal defendants – Anderson, Starks, and Mackey – along with two minors who are being prosecuted by the state, jumped the victim as he walked from his vehicle to his office in College Park, Ga. to begin his workday at a shipping company located near Hartsfield-Jackson airport. The robbers took his wallet, wedding ring, and car keys, and Anderson instructed the minors to take the victim’s car. The victim was then forced into the backseat of the robbers’ vehicle, where he was repeatedly beaten by Anderson until he provided his ATM PIN number. Video surveillance captured Starks and Mackey going to several ATM machines to withdraw money from the victim’s account.
At one point, the victim told the robbers that he had $5000 back at the business location, hoping that police would have already responded to that location. The robbers went back to the office parking lot with the victim, but left when they saw police nearby. From there, they drove the victim to an abandoned house, forced him into the backyard, and pistol-whipped him until they left him for dead, lying in the stream. The victim managed to make it to the street, where a passerby stopped and called police. The victim, who spoke at the sentencing hearings, told the court that he believed that he was going to be killed and that even though he suffered some permanent injury from the beating, he is back at work.
Frederick Todd Anderson, 26, of Riverdale, Ga., has been sentenced to 19 years, 7 months in prison to be followed by five years of supervised release, and ordered to pay restitution in the amount of $8,060. David Starks, 30, of College Park, Ga., has been sentenced to eleven years, eleven months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $8,060. Both Anderson and Starks were assessed a fee of $300. He was convicted on these charges on May 2, 2014, after he pleaded guilty. Deshawn Antoine Mackey, 19, of Riverdale, Ga., was sentenced earlier to five years in federal prison.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and Clayton County Police Department.
Assistant United States Attorney Kim S. Dammers prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.