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Wednesday 2 July 2014
Mason Man Sentenced to 120 MonthsRead the Press Release
Memphis, TN – Fred Masters, Jr., age 48, of Mason, Tenn., was sentenced to 120 months in federal prison following his guilty plea to one count of possessing equipment, chemicals, products, and materials that may be used to manufacture methamphetamine, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the facts alleged in the indictment and revealed during the sentencing hearing, on March 3, 2012, Tipton County Sheriff’s Office Deputies and a canine officer went to Masters’s home to execute a search warrant. When the officers arrived, Masters released his pit bull to attack the officers as Masters fled into the woods. The officers searched Masters’s home and found several chemical components consistent with the manufacture of methamphetamine. Officers also found methamphetamine on a table in the bedroom next to Masters’s Tennessee ID. Masters was apprehended a week later by law enforcement officials.
In addition to the prison sentence, United States District Judge Jon P. McCalla ordered Masters to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Tipton County Sheriff’s Office and the 25th District Attorney General’s Office. Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.Manhattan U.S. Attorney Announces Charges Against Three Leaders of Peruvian Terrorist Organization Shining PathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Michele M. Leonhart, Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced terrorism, narcotics, and weapons charges against FLORINDO ELEUTERIO FLORES-HALA, a/k/a “Comrade Artemio,” VICTOR QUISPE-PALOMINO, a/k/a “Comrade José,” and JORGE QUISPE-PALOMINO, a/k/a “Raul.” As set forth in the Indictment, FLORES-HALA, VICTOR QUISPE-PALOMINO, and JORGE QUISPE-PALOMINO are leaders of the Peruvian-based terrorist organization Sendero Luminoso, or “Shining Path,” which has engaged in cocaine-trafficking and terrorist acts against Peruvian civilians and military, including bombings and massacres, since approximately 1980. FLORES-HALA is in the custody of Peruvian law enforcement. VICTOR QUISPE-PALOMINO and JORGE QUISPE-PALOMINO remain at large. The three are accused of facilitating international narcotics trafficking in order to provide support for the terrorist organization. The case has been assigned to United States District Judge Richard J. Sullivan.
U.S. Attorney Preet Bharara stated: “As alleged, these defendants are leaders of a murderous paramilitary organization, and they themselves ordered ambushes that killed nearly two dozen Peruvian soldiers and police officers. The product of the Peruvian cocaine trade they plied and protected sometimes ends up for sale in the United States. Such a path is anything but shining; it is the path to prison.”
DEA Administrator Michele M. Leonhart stated: “For decades, the Shining Path has fueled terror, addiction and instability across the globe using the proceeds of their drug trafficking. This investigation and our ongoing global efforts reflect DEA’s unwavering commitment to protecting our citizens from these violent and brutal narco-terror organizations. The DEA, along with our outstanding Peruvian law enforcement counterparts, will continue to attack this terrorist organization until they are completely dismantled.”
According to the Indictment:
For more than 30 years, the Shining Path has been an international terrorist group ostensibly committed to Maoist ideals and dedicated to the violent overthrow of the democratically elected Government of Peru. Initially founded and conceived as a political movement and an outgrowth of the Peruvian Communist Party, the Shining Path became a terrorist army engaged in bombings, massacres, and other acts of violence within Peru. The Shining Path has been designated by the United States Secretary of State as a foreign terrorist organization since the designation was first established in U.S. law in October 1997, and has remained on the list of designees ever since.
The Shining Path is styled as a military organization whose armed combatants in recent years have been concentrated in two geographically distinct factions in South Central Peru: the Upper Huallaga Valley (the “UHV”) and the territory bounded by the Apurimac and Ene River Valleys (the “VRAE”). The UHV and VRAE factions have in the recent past been led, respectively, by FLORES-HALA and VICTOR QUISPE-PALOMINO. Within each of the UHV and VRAE factions, the Shining Path’s members are divided into armed columns. JORGE QUISPE-PALOMINO has served as a column leader in the VRAE faction of the Shining Path.
The Shining Path funds its terrorist activities, at least in part, with proceeds from the cocaine trade. For approximately the past decade, the Shining Path has sought to control all aspects of the cocaine trade in the UHV and the VRAE, which contain some of the world’s most fertile coca leaf producing areas. In addition to cultivating and processing its own cocaine for sale, the Shining Path levies a system of taxes called “cupos” on the cultivation, processing, and transit of cocaine in and through the UHV and the VRAE. The Shining Path also provides transport and armed security to drug trafficking organizations moving large loads of cocaine through and out of the VRAE and the UHV. FLORES-HALA, VICTOR QUISPE-PALOMINO, and JORGE QUISPE-PALOMINO knew and understood that at least some of the cocaine the Shining Path grew, taxed, and transported was destined eventually to be sold in the United States.
For at least the past 10 years, the Shining Path has directed violent acts against Peruvian National Police (“PNP”) and Peruvian Army installations and personnel, and has conducted numerous violent attacks on counter-narcotics patrols, killing scores of soldiers and policemen. These acts of violence were intended to protect the Shining Path’s financial interests in the cocaine trade, to serve as reprisal for law enforcement efforts to eradicate illegal cocaine trafficking, and to arm itself by forcefully taking weapons from dead and wounded targets of its violent ambushes.
In Count One of the Indictment, FLORES-HALA, 52, VICTOR QUISPE-PALOMINO, 54, and JORGE QUISPE-PALOMINO, 56, all Peruvian citizens, are charged with conspiring to provide material support to a foreign terrorist organization, specifically, the Shining Path.
In Count Two, FLORES-HALA, VICTOR QUISPE-PALOMINO, and JORGE QUISPE-PALOMINO are charged with conspiring to distribute cocaine with the intent to support terrorist activity.
In Count Three, FLORES-HALA is charged with aiding and abetting the discharge of firearms during and in relation to the terrorism offense charged in Count One. Specifically, Count Three charges that, on December 22, 2005, in Aucayacu, Peru, FLORES-HALA directed Shining Path members to fire automatic weapons at a passing PNP convoy, resulting in the killing of eight PNP officers.
In Count Four, VICTOR QUISPE-PALOMINO, and JORGE QUISPE-PALOMINO are charged with aiding and abetting the discharge of firearms during and in relation to the terrorism offense charged in Count One. Specifically, Count Four charges that, on April 9, 2009, in Ayacucho, Peru, VICTOR QUISPE-PALOMINO and JORGE QUISPE-PALOMINO ordered and planned an ambush in which a group of Shining Path members, armed with assault rifles, detonated a series of mines on a road where a Peruvian Army patrol was passing, and followed with gunfire, killing 15 soldiers, wounding more than a dozen, and seizing 13 assault rifles.
Count One carries a maximum term of life in prison and a maximum fine of $250,000. Count Two carries a maximum term of life in prison, a mandatory minimum term of 20 years in prison, and a maximum fine of $250,000. Counts Three and Four each carry a maximum term of life in prison, a mandatory minimum term of 10 years in prison, and a maximum fine of $250,000. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the Judge.
These historic charges are the result of the close cooperative efforts of the United States Attorney’s Office for the Southern District of New York and the DEA, including the DEA’s Lima Country Office and Special Operations Division. The United States Government also worked closely with Peruvian Government authorities – the Peruvian National Police, the combined Peruvian armed forces and the Peruvian National Prosecutors Office; this Indictment would not have been possible without their ongoing cooperation and assistance. Mr. Bharara also thanked the U.S. Department of Justice’s Office of International Affairs and National Security Division, the United States Department of State, and the United States Department of Defense for their ongoing assistance.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Michael Ferrara is in charge of the prosecution.
The allegations contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Flores-Hala et al., Shining Path Indictment
Man Sentenced for Assaulting Security Guard at Social Security Administration OfficeRead the Press Release
A man who forcibly assaulted a security guard at the Social Security Administration Office in Cedar Rapids, Iowa, was sentenced on July 1, 2014, to more than two years in federal prison.
Howard Lamont Coakley, age 30, from Cedar Rapids, Iowa, received the prison term after a May 7, 2014, guilty plea to assaulting a person engaged in official federal duties.
At the guilty plea hearing, Coakley admitted that, on January 14, 2014, he forcibly assaulted a security guard who was working for the Social Security Administration in Cedar Rapids. Coakley further admitted his assault caused bodily injury to the security guard.
Coakley was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Coakley was sentenced to 30 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Coakley is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Protective Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-00017.
Lower Brule Man Sentenced for Assault of A Spouse and A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to a Spouse and Intimate Partner and Assault of a Minor Under the Age of 16 was sentenced on July 1, 2014, by U.S. District Judge Roberto A. Lange.
Glenn Tisdall, age 48, was sentenced to 15 months of custody on the Assault Resulting in Substantial Bodily Injury charge, and 12 months of custody on the Assault of a Minor charge. The sentences are to run concurrently. Tisdall was also sentenced to 2 years of supervised release and a $125 special assessment to the Federal Crime Victims Fund.
Tisdall was indicted by a federal grand jury on January 15, 2014. He pled guilty on April 10, 2014.
The conviction stems from an incident on October 24, 2013, when Tisdall got upset with his spouse. He grabbed her by the hair and began slapping her in the face. The juvenile victim came out of his bedroom to assist his mother. Tisdall grabbed the juvenile’s shirt and then his jaw, and pushed him against the bathroom door frame.
Tisdall became increasingly angry. He grabbed his wife by both her ears, pinned her on the couch, and head butted her in the forehead and face. Tisdall also pulled a multi-tool from his pocket and held it under her chin threatening her.
In an attempt to again protect his mother, the juvenile male grabbed Tisdall around the waist and tried to pull him off of his mother. Tisdall then turned to the young male, grabbed him around the neck with both hands and dug his nails into his neck while squeezing. Eventually, Tisdall released him and the two victims were able to get away.
This case was investigated by the Bureau of Indian Affairs, Lower Brule Law Enforcement Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Tisdall was immediately turned over to the custody of the U.S. Marshals Service.
Louisiana Man Pleads Guilty to Racially-Motivated Assault on Hurricane Relief WorkersRead the Press Release
Josh Jambon, 52, a resident of Grand Isle, Louisiana, pleaded guilty today in front of U.S. District Judge Susie Morgan to two counts of federal civil rights violations, announced Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.
In connection with his plea, Jambon admitted that he assaulted two female African-American Hurricane Isaac relief workers because of their race and because of their employment status. On Sept. 18, 2012, in Grand Isle, Jambon approached a work crew tasked with cleaning up debris from Hurricane Isaac. During an interaction with the work crew, Jambon used racial slurs against two female African-American crew members, M.R. and N.S. Jambon then approached N.S. and hit her in the face, because of her race and because of her employment with the work crew, then proceeded to assault M.R. in the same manner. When Jambon saw a third crew member, B.W., filming the incident on her cell phone, Jambon initiated a physical struggle with B.W. in an attempt to take her cell phone so that he could delete the video.
“Hate-fueled violence has no place in a civilized society,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal to prosecute acts motivated by racial bias.”
“By holding Mr. Jambon accountable for his racially-motivated criminal conduct, our office once again demonstrates its commitment to protecting the civil rights of all residents in Southeast Louisiana,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.
For each count, Jambon faces a statutory maximum penalty of one year in prison, up to one year of supervised release, a $100,000 fine and a $25 special assessment.
The case is being investigated by special agents of the FBI.
The case is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division and Assistant U.S. Attorney Matt Chester for the Eastern District of Louisiana.
Lookout in Armed Bank Robbery Sentenced to More Than 7 Years in PrisonRead the Press Release
OAKLAND – Kevin Tyrone Buford was sentenced today to 90 months in prison for planning and participating in the March 1, 2013 takeover style armed bank robbery of the Mechanics Bank on Pinole Valley Road, in Pinole, Calif., announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Buford pleaded guilty on Jan. 22, 2014, without entering into a plea agreement with the government. During the plea hearing, Buford admitted that on March 1, 2013, he served as the lookout during the robbery, communicating by cell phone with the gunman, Gary Casdell Fite II, and the getaway driver, Regina Dean, who stole more than $3,000 from the bank. Buford also admitted that he cased the bank on Feb. 26, 2013, three days before the robbery.
Buford, 27, of Vallejo, Calif., was indicted by a federal grand jury on Aug. 29, 2013, for aiding and abetting armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d). Buford was not arrested immediately following the robbery. He was identified and charged after additional investigation by the FBI, including a tip by alert bank employees who remembered a man entering the bank and behaving suspiciously just days before the robbery. The FBI obtained Buford’s cell phone records, which placed him within the vicinity of the bank during the robbery and casing, and revealed frequent communications between the three-person robbery crew leading up to the bank robbery. Buford’s casing of the bank was also captured by video surveillance.
The sentence was handed down by the Honorable Phyllis J. Hamilton, United States District Court Judge. Judge Hamilton also sentenced Buford to a 5-year period of supervised release. Gunman Fite was sentenced to 10 years in prison on Sept. 4, 2013. Getaway driver Dean was sentenced to 5 years in prison on Aug. 21, 2013.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan. The prosecution is the result of an investigation by the FBI.
(Buford indictment )
Las Vegas, Nev. Montessori School Employee Charged with Federal Child Pornography CrimesRead the Press Release
LAS VEGAS, Nev. – A man who is employed at the Spring Valley Montessori School in Las Vegas appeared in federal court this afternoon on charges that he received and possessed child pornography, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
John-Benedict Galang Alcantara, 24, is charged in a criminal complaint with one count of receipt of child pornography and one count of possession of child pornography. Alcantara self-surrendered to federal authorities this morning, and had an initial appearance hearing at 3:00 p.m. before U.S. Magistrate Judge Cam Ferenbach, and was released on bond with special conditions. If convicted, Alcantara faces a minimum of five years and a maximum of 20 years in prison on the receipt charge and a maximum of 10 years in prison on the possession charge, as well as fines of up to $250,000 on each count.According to the criminal complaint, in April 2014, a Las Vegas Metropolitan Police Department detective assigned to the FBI’s Child Exploitation Task Force determined that child pornography images and videos were being shared online through an internet address traced to Alcantara’s residence in Las Vegas. One of the videos depicted a prepubescent female child having sex with an adult male. On June 29, 2014, a state court search warrant was executed at the residence and law enforcement authorities found cartoon images of child erotica hanging on the walls in the bedroom occupied by Alcantara. Law enforcement authorities seized several computers and related devices from the home containing numerous images of child pornography. Another search warrant was executed at the Montessori School where the defendant works in the area of computer support, and law enforcement authorities seized four more computers which were allegedly under Alcantara’s control. Authorities determined that efforts had been made to erase the hard drives of these computers; however, remnants of child pornography files were found on a least one of them.
The case is being investigated by the FBI and Las Vegas Metropolitan Police Department, and is being prosecuted by Special Assistant United States Attorney Allison Herr.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal,
state, and local resources to locate, apprehend, and prosecute individuals who sexually
exploit children, and to identify and rescue victims. For more information about Project
Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet
safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Kansas City, Kan., Man Indicted on Charge of Robbing Credit Union in LawrenceRead the Press Release
TOPEKA, KAN. – A man from Kansas City, Kan., has been indicted on federal charges of robbing a credit union in Lawrence, U.S. Attorney Barry Grissom said today.
Antonio P. Gaitan, 35, who is currently in federal custody, is charged with one count of bank robbery. The indictment alleges that on April 5, 2014, he robbed Truity Credit Union, 3400 West 6th Street in Lawrence, Kan.If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The FBI and the Lawrence Police Department investigated. Assistant U.S. Attorney Mike Warner is prosecuting.
OTHER INDICTMENTS
Darrian Michael Stewart, 20, currently in the Shawnee County Jail, is charged with two counts of robbery. The indictment alleges that on June 20, 2014, he robbed a BP gas station at 1401 S.W. Huntoon in Topeka, Kan. The indictment also alleges that on June 11, 2014, he robbed Cali Smoke Stop and Gas at 2701 S.E. California Avenue in Topeka.If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Shu-Ying Sun, 44, who has been living in Overland Park, Kan., and Mark Andrew Garlock, 49, Overland Park, Kan., are charged in a superseding indictment with one count of conspiracy to commit marriage fraud and one count of making a false statement on a passport application. The crimes are alleged to have taken place from 2005 to 2009 in Douglas County, Kan.
The indictment alleges that Sun, who is a foreign national, entered into a marriage contract with Garlock for the purpose of evading immigration laws. She had the assistance of Quong Bow Low, who offered to assist aliens in the pursuit of lawful status. He charged fees for services such as coaching defendants on how to answer questions during immigration interviews so officials would believe the couple had entered into a valid marriage.
Low pleaded guilty to one count of conspiracy to commit marriage fraud and is set for sentencing Aug. 14.
If convicted, Sun and Garlock face a maximum penalty of five years in federal prison and a fine up to $250,000 on the conspiracy count, and a maximum of 10 years and a fine up to $250,000 on the other count. The Department of Homeland Security investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Nestor D. Duenas-Vasquez, 26, Glenpool, Okla., and Kyndal N. Upson, 24, Owasso, Okla., are charged with one count of possession with intent to distribute more than a pound of heroin. The crime is alleged to have occurred June 26, 2014, in Sedgwick County, Kan.
They initially were charged in a criminal complaint filed June 30, 2014. It is alleged Wichita police discovered the heroin when they stopped the two for a traffic violation June 26 near I-135 and 21st street.
If convicted, they face a penalty of not less than five years and not more than 40 years in federal prison and a fine up to $250,000. The Wichita Police Department and the Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
Ronnie Davone Matthews, 20, who is in custody in the Shawnee County Jail, is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Feb. 6, 2014, in Shawnee County, Kan.If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Topeka Police Department and the FBI investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
Nolberto Medina-Campos, 36, Kansas City, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred June 18, 2014, in Wyandotte County, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million. Homeland Security Investigations investigated. Assistant U.S. Attorney Chris Oakley is prosecuting.
Daniel Floyd Jenkins, 20, is charged with failing to register as required by the Sex Offender Registration and Notification Act. The crime is alleged to have occurred starting in April 2014 in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Topeka Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Johnstown Woman Conspired with Others to Distribute Crack CocaineRead the Press Release
JOHNSTOWN, Pa. - A resident of Johnstown, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute cocaine base, in the form commonly known as "crack," United States Attorney David J. Hickton announced today.
Paulette M. Alt, 52, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from Jan. 31, to April 23, 2013, Alt conspired with her co-defendants to distribute less than 28 grams of cocaine base.
Judge Gibson scheduled sentencing for Dec. 15, 2014, at 11 a.m. The law provides for a total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Alt.
International Employee Recruiter Sentenced to Two Years in Prison for Visa FraudRead the Press Release
Defendant Claimed 789 Workers Hired for Maryland Pool Service Company
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Milen Radomirski, age 34, a Bulgarian national residing in Germantown, Maryland, today to two years in prison for visa fraud. Judge Grimm also ordered Radomirski to forfeit $100,000.“American businesses are permitted to sponsor foreign workers to enter the United States lawfully under the H-2B visa program, but Milen Radomirski undermined that program by falsely vouching for hundreds of aliens who were not expected to comply with the terms of the visa,” said U.S. Attorney Rod J. Rosenstein.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Bill Jones, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Special Agent in Charge Niall Meehan of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.
According to his plea agreement, from 2003 to August 2013, Radomirski worked for a pool service company in Maryland that provided lifeguards and pool maintenance in the Washington, D.C. metropolitan area. As part of his employment, Radomirski recruited international workers that his company could sponsor to work in the U.S. on H-2B visas and other short-term visas. Radomirski admitted that he fraudulently obtained more than 100 H-2B visas. An H-2B visa is a non-immigrant visa granted to citizens of other countries to work in the U.S. on a temporary basis.From 2006 through 2011, Radomirski’s company submitted applications for approximately 789 H-2B visas. Radomirski’s company certified to the U.S. Department of Labor that it had not sought or received payment from the employee to obtain the visa and specified to U.S. Citizenship and Immigration Services the job in which the foreign national supposedly would be employed. Sponsored workers could not legally be employed by any other company. The company was required to notify DHS if an H-2B worker failed to report to work within five days after their specified start date or if a worker absconded or was terminated.
Radomirski admitted that he charged visa beneficiaries money in exchange for including them on his company’s petitions for H-2B visas. Radomirski knew that many of the visa beneficiaries would not work for his company at all, would only work at his company for a short period of time, or would work for other employers in addition to his company.
United States Attorney Rod J. Rosenstein praised the HSI Baltimore; U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, U.S. Department of State’s Diplomatic Security Service, and USCIS, for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Thomas P. Windom, who prosecuted the case.
Harrison County Resident Sentenced to Nine Years Imprisonment on Federal Charge of Possession with Intent to Distribute MethamphetamineRead the Press Release
COUNCIL BLUFFS, IA - On July 1, 2014, Arthur J. Hulett, a 52 year-old resident of Missouri Valley, Iowa, was sentenced by United States District Court Judge John Jarvey to 108 months in prison, and six years of supervised release following the period of imprisonment, on the charge of possession with intent to distribute methamphetamine, announced United States Attorney Nicholas A. Klinefeldt.
On February 6, 2014, the defendant pleaded guilty to the charge, which was the result of an investigation conducted by law enforcement into the distribution of methamphetamine in and around Harrison County, Iowa. The investigation revealed that methamphetamine was being distributed by the defendant and susequently transported from Harrison County, Iowa, into counties in Western Iowa and Eastern Nebraska.
The investigation was conducted by the Missouri Valley, Iowa, Police Department, Harrison County, Iowa, Sheriff’s Office, Iowa State Patrol, Burt County, Nebraska, Sheriff’s Office, Iowa Division of Narcotics Enforcement, and the United States Marshal’s Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Hales Corners Certified Public Accountant Indicted for Tax Fraud ConspiracyRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that a federal grand jury has indicted John C. Noggle, on three-felony counts relating to the misuse of welfare benefit plans under Section 419A(f)(6) of the Internal Revenue Code. Noggle is accused of using the welfare benefit plans to conceal his clients’ basis in life insurance and annuities, which resulted in the underreporting of income. Specifically, the grand jury charged Noggle with conspiring to defraud the United States in violation of 18 U.S.C. § 371, and for filing false income tax returns in violation of 26 U.S.C. § 7206(2). The case was investigated by agents from the Internal Revenue Service-Criminal Investigation (“IRS-CI”).
“Those who misuse welfare benefit plans by running their compensation through layers of complicated trusts and insurance policies will be vigorously investigated by federal law enforcement,” said Kelly R. Jackson, Special Agent in Charge of the IRS Criminal Investigation office in Milwaukee. Special Agent in Charge Jackson added “We encourage anyone with information about these types of schemes to come forward and speak with federal authorities.”It should be noted that an indictment is merely the formal method of charging an individual and does not constitute inference of his guilt. An individual is presumed innocent until such time, if ever, that the government establishes his guilt beyond a reasonable doubt.
Grand Isle Man, Josh Jambon, Pleads Guilty to Racially-motivated Assault on Hurricane Relief WorkersRead the Press Release
Josh Jambon, 52, a resident of Grand Isle, Louisiana, pleaded guilty today in front of U.S. District Judge Susie Morgan to two counts of federal civil rights violations, announced Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.
In connection with his plea, Jambon admitted that he assaulted two female African-American Hurricane Isaac relief workers because of their race and because of their employment status. On Sept. 18, 2012, in Grand Isle, Jambon approached a work crew tasked with cleaning up debris from Hurricane Isaac. During an interaction with the work crew, Jambon used racial slurs against two female African-American crew members, M.R. and N.S. Jambon then approached N.S. and hit her in the face, because of her race and because of her employment with the work crew, then proceeded to assault M.R. in the same manner. When Jambon saw a third crew member, B.W., filming the incident on her cell phone, Jambon initiated a physical struggle with B.W. in an attempt to take her cell phone so that he could delete the video.
“Hate-fueled violence has no place in a civilized society,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal to prosecute acts motivated by racial bias.”
“By holding Mr. Jambon accountable for his racially-motivated criminal conduct, our office once again demonstrates its commitment to protecting the civil rights of all residents in Southeast Louisiana,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.
For each count, Jambon faces a statutory maximum penalty of one year in prison, up to one year of supervised release, a $100,000 fine and a $25 special assessment.
The case is being investigated by special agents of the FBI.
The case is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division and Assistant U.S. Attorney Matt Chester for the Eastern District of Louisiana.
(Download Factual Basis )
Fort Thompson Man Sentenced for Domestic Assault by A Habitual Offender and Child AbuseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Domestic Assault by a Habitual Offender and Child Abuse was sentenced on June 30, 2014, by U.S. District Judge Roberto A. Lange.
Anthony Comes Flying, a/k/a Anthony Miller, age 29, was sentenced to 33 months of custody for the domestic assault charge, and 33 months of custody for the child abuse charge. The sentences are to be served concurrently. Miller was also sentenced to 2 years of supervised release and a $200 special assessment to the Federal Crime Victims Fund.
Miller was indicted by a federal grand jury on January 15, 2014. He pled guilty on March 24, 2014.
The convictions stem from an incident on January 4, 2014, when law enforcement was summoned to the Defendant’s home after he assaulted his girlfriend and their children. The assault began after the female victim took the babysitter home. When she arrived back home, Miller was not there, and she found their toddler and infant sons, alone and crying. Miller arrived home a short time later. He was upset and began hitting and kicking the victim with his fist and boots on her head and body. Miller also hit the two boys in the body and head. After hitting the victim and their children, Miller retrieved a kitchen knife and threatened to kill them and then himself. The victim kept trying to protect her children and was yelling at Miller to stop.
This case was investigated by the Bureau of Indian Affairs, Crow Creek Law Enforcement Agency. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Miller was immediately turned over to the custody of the U.S. Marshals Service.
Former Kellogg Salesman Pleads Guilty to Wire Fraud ChargesRead the Press Release
RICHMOND, Va. – John Morrell Palmer, III, 55, of Fredericksburg, Virginia, pleaded guilty today to Conspiring to Commit Wire Fraud.
Dana J. Boente, United States Attorney for the Eastern District of Virginia;Colonel W. Steven Flaherty, Virginia State Police Superintendent; Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the plea was accepted by United States District Judge M. Hannah Lauck.
Palmer faces a maximum penalty of 20 years in prison when he is sentenced on October 2, 2014, by Senior United States District Judge Robert E. Payne.
In a statement of facts filed with the plea agreement, Palmer admitted that from 2009 through 2013, he conspired with an unindicted co-conspirator, the President of an unnamed grocery retail chain, to submit fraudulent documents to The Kellogg Company and SuperValu, a grocery wholesaler through which Kellogg sold product to retailers. SuperValu awarded the grocery retail chain approximately $1.8 million in deductions against its running account with SuperValu as a result of the fraudulent submissions. Kellogg reimbursed SuperValu for the awarded deductions. The unindicted co-conspirator paid cash to Palmer in the total amount of approximately half the value of the fraudulently obtained deductions.
This case was investigated by the Virginia State Police, the United States Postal Inspection Service, and Federal Bureau of Investigation. Assistant U.S. Attorney Michael C. Moore is prosecuting the case on behalf of the United States.
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. 3:14-cr-85.Tweet
Former High School Principal Sentenced to Prison in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – Robert Paul Patton, the former principal at Sherwood High School, was sentenced to more than ten years in prison following his plea of guilty to possession of child pornography. At a sentencing hearing on July 1, 2014, Senior U. S. District Judge Garr M. King sentenced Patton, 45, to 127 months in prison, followed by a ten-year term of supervised release. Patton will be subject to stringent conditions of supervision, including prohibitions on associating with minors, restrictions on where he can live, and restrictions on his use of computers. Patton will also be required to participate in sex offender treatment, and must continue to register as a sex offender.
This is Patton’s fourth criminal conviction. In 2003, he was convicted in Washington County of possessing materials depicting sexually explicit conduct of a child and two counts of third degree sexual abuse, after twice having sexual relations with a 16-year-old boy. In 2011, he was convicted in Multnomah County of failure to register as a sex offender. In 2013, he was convicted in Multnomah County of attempted first degree sexual abuse in connection with an incident involving a 12-year-old boy. During the course of that investigation, detectives from the Portland Police Bureau served a state search warrant at Patton’s Milwaukie residence, and seized computer equipment later found to contain child pornography. After filing and litigating motions to suppress the evidence seized from his residence, Patton pled guilty to possessing child pornography, reserving the right to appeal the denial of his motions.
U.S. Attorney Amanda Marshall praised the sentence imposed on Patton, noting that it reflected the serious nature of Patton’s criminal conduct. “Prior to being caught in possession of child pornography, which lead to the conviction in this case, Robert Patton had a criminal history going back to when he was a high school principal who possessed child pornography and sexually abused a teenage boy,” she said. “Patton’s conduct was particularly concerning, because it suggests an ongoing sexual interest in children that did not abate following his first conviction.” She also hoped that Patton’s sentence “sends a clear message to those who prey on our children.”
Because of his prior Washington County conviction, Patton faced a mandatory minimum sentence of ten years in prison. In imposing the 127-month sentence, Judge King took into account the nature and seriousness of the offense, Patton’s background, history, and characteristics, the need to provide just punishment and adequate deterrence, and the need to protect the public. Judge King noted that Patton served a 24-month sentence in the Multnomah County attempted sex abuse case, and while serving that sentence, made “good use” and “appropriate use” of his time, tutoring other inmates, completing training courses, and participating in various activities. Judge King also noted that Patton had “a great deal of support” from his family. For his part, Patton apologized to his victims, sought forgiveness, and promised to “get help.”
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 U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Beaverton Police Department, the Portland Police Bureau, and the Northwest Regional Computer Forensic Laboratory, and was prosecuted by Assistant U. S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.
Former Executive Director of Noah, Stacey Jackson, Pleads Guilty to Conspiracy to Steal Government Funds and Solicit Kickbacks from Federally Funded ProgramRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. announced that STACEY JACKSON, age 47, a resident of New Orleans, Louisiana, pleaded guilty today before U.S. District Judge Mary Ann Vial Lemmon to conspiracy to steal federal funds and demand kickbacks from a program receiving federal funds.
According to court documents, JACKSON, the former Executive Director of New Orleans Affordable Homeownership (“NOAH”), a city agency and non-profit corporation, conspired with Earl Myers, Trellis Smith, and others to misuse and personally benefit from federal funds that NOAH had received, in violation of the law. The United States Department of Housing and Urban Development (“HUD”), both before and after Hurricane Katrina, had provided grant money to the City of New Orleans to address blight within the city and to remediate homes damaged by the storm.
JACKSON, as the Executive Director of NOAH, was responsible for the day-to-day management of the agency and determined how much each contractor would be paid. JACKSON arranged to overpay certain contractors, such as Myers and Smith, instructing them to kickback portions of the overpayments to JACKSON’S benefit.
Specifically, court documents state that on numerous occasions, JACKSON instructed Myers and Smith to pay her kickbacks out of the NOAH money she paid them for work that could not be substantiated by invoices or work actually performed. For example, in or near October 2005, JACKSON, wrote a check from NOAH to Parish Dubuclet, a company operated by her friend, Smith, for approximately $15,260, which was deposited into a bank account belonging to Smith and Parish Dubuclet. On or about October 8, 2005, Parish Dubuclet wrote a check in the amount of $10,460 to JACKSON’S father, which was deposited into a bank account that JACKSON, controlled jointly with her father. Several days later, JACKSON used this money to write a check to a tree removal service to pay for the removal of a tree from her mother’s yard.
Court documents state that from in or near December of 2006 through in or near July of 2007, JACKSON contracted with Myers to renovate properties that she owned, which were located on 6th Street and Danneel Street in New Orleans, Louisiana. JACKSON paid Myers tens of thousands of dollars toward the renovation project and used public funds belonging to the United States and distributed to NOAH to pay Myers a portion of the money she owed him for these renovations.
Documents in the court records also outline that on or about November 1, 2007, JACKSON wrote two checks to companies owned and operated by Myers. One check was for $47,899.50 to Myers & Sons. JACKSON instructed Myers to give portions of this money to different entities, such as a school that JACKSON was affiliated with. The second check for $32,842.50 was payable to Excel Development, also owned and operated by Myers. JACKSON directed Myers to kickback a portion of this money to her by having him write two checks, one for $9,400 and one for $7,000 payable to Z.F., a person who JACKSON knew personally and to whose checking account she had access. Myers complied with these instructions because he knew it would ensure that he would continue getting NOAH remediation work assignments from JACKSON.
Also according to court documents, on or around August 13, 14, and 15, 2008, after JACKSON became aware that Myers had received a subpoena from a federal grand jury ordering him to turn over documents supporting the work he had done for NOAH, JACKSON provided false and fraudulent documents to Myers in an effort to mislead the federal grand jury into finding that no fraud occurred at the defendant’s direction or while she was the Executive Director of NOAH.
JACKSON is scheduled to be sentenced on October 16, 2014, and faces a maximum term of imprisonment of five years, a fine of up to $250,000, and three years of supervised release.
“Today’s guilty plea stands as the most recent example of our Office’s continued vigilance in prosecuting public corruption,” stated U.S. Attorney Polite. “By diverting federal funds from those most in need in our community, Ms. Jackson’s criminal conduct further eroded public confidence in our government. On behalf of the residents of Southeast Louisiana, we will continue to demand lawful and ethical conduct from our public officials.”
“In the wake of the recent conviction of former mayor Ray Nagin and now the guilty plea of Ms. Jackson, the FBI and its law enforcement partners will continue their tireless pursuit of all those who unlawfully financially capitalize upon the Katrina tragedy event as its 10-year anniversary nears,” state Michael Anderson, Special Agent in Charge, Federal Bureau of Investigation, New Orleans Field Office.
Special Agent in Charge Gabriel L. Grchan, IRS – Criminal Investigation, stated, “Public corruption degrades the integrity of government leadership and erodes the trust instilled in public officials by the very individuals they are appointed or elected to serve. It is a great accomplishment when an individual who has violated that trust is brought to justice. The plea ensures that Stacey Jackson will be held accountable for her misdeeds and the detriment she caused the great city of New Orleans and its citizens.”
“This guilty plea was the result of outstanding investigative work conducted by HUD-OIG, and our law enforcement partners,” stated Wyatt J. Achord, Assistant Special Agent in Charge, U.S. Department of Housing and Urban Development-Office of Inspector General. “This collaborative effort sends a clear message that if someone takes advantage of a government subsidized program they will be held accountable.”
The case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development - Office of Inspector General, the Internal Revenue Service Criminal Investigation, City of New Orleans - Office of Inspector General, and the United States Postal Inspection Service. The U.S. Attorney’s Office would also like to acknowledge the assistance of the Metropolitan Crime Commission.
The case was prosecuted by Assistant U.S. Attorney and Senior Litigation Counsel Fred P. Harper, Jr. and Assistant U.S. Attorney Sharan Lieberman.
(Download Factual Basis )
Former Acting Pembroke Township Supervisorcharged with Defrauding Township Accounts for Personal UseRead the Press Release
Springfield, Ill. – A federal grand jury today returned an indictment that charges Leon Eddie Mondy, former acting Pembroke Township Supervisor, with defrauding township accounts of more than $60,000 from August 2012 to May 2013. Mondy will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
The indictment charges Mondy, 35, of St. Anne, Ill., with one count of wire fraud. According to the indictment, as acting Pembroke Township Supervisor, Mondy was a signatory and had access to multiple bank accounts that held township funds. The indictment alleges that Mondy made cash withdrawals of township funds under the false pretense that the funds would be used for the benefit of Pembroke Township. In fact, the indictment alleges Mondy used the funds for his personal benefit, such as for gambling. Mondy allegedly withdrew cash from various Pembroke Township accounts, such as the Insurance Fund, Illinois Municipal Retirement Fund, Water Debt Fund, Community Center Fund, and the Senior Nutrition Fund.
The charge is the result of an investigation by the Federal Bureau of Investigation and the Illinois Attorney General’s Office. The case is being prosecuted by Assistant U.S. Attorney Eugene L. Miller.
If convicted, the offense of wire fraud carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Five Individuals Charged with Conspiring to Distribute Methamphetamine in Baker CountyRead the Press Release
Jacksonville, Florida - United States Attorney A. Lee Bentley, III, Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, and Baker County Sheriff Joey B. Dobson announce that Ashley Chase Lee (31, Alma, Georgia), Archie Crook (35, Nassau County), Robert Hartzog (27, Baker County), Anthony Fisher (35, Baker County), and Garrett Follis (27, Baker County) have been charged with conspiracy to distribute 50 grams or more of pure/actual methamphetamine. Each faces a mandatory minimum term of 10 years, up to life in federal prison. Follis, Hartzog and Crook have pleaded guilty to their charges, pursuant to written plea agreements, and are awaiting sentencing. Lee and Fisher are set for trial in September 2014, in Jacksonville.
According to the plea agreements, beginning in approximately May 2013, Lee supplied ounce quantities of crystal methamphetamine to Crook, who then supplied it to others, including Hartzog and Follis. Much of the methamphetamine was distributed from an apartment in Macclenny, Baker County, Florida. Law enforcement officers with the Baker County Sheriff’s Office and the Drug Enforcement Administration seized, in total, approximately 204.7 grams of methamphetamine, some of which was deemed to be 73.3% pure.
This case was investigated by the Drug Enforcement Administration and the Baker County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Julie Hackenberry.
Final Guilty Plea Entered in Cocaine Distribution Conspiracy with Ties to Lubbock and Odessa, TexasRead the Press Release
LUBBOCK, Texas— The last of eight defendants charged with various offenses in a cocaine distribution conspiracy that operated in Mexico and in Lubbock, Borger and Odessa, Texas, pleaded guilty today, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Efren Fabela Lopez, 34, of Odessa, pleaded guilty today, before U.S. Magistrate Judge Nancy M. Koenig, to one count of possession of cocaine and aiding and abetting. He faces a maximum statutory penalty of one year in federal prison and a $1,000 fine.
This investigation, led by the Lubbock County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), resulted in the seizure of 30 pounds of cocaine in Lubbock and Odessa that had been brought in from Mexico, 10 firearms and nearly $200,000 in cash in Borger.
Each of the four below-listed defendants pleaded guilty last month to one count of conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Each faces a statutory penalty of not less than 10 years and up to life in federal prison and a $10 million fine.
Martin Cardona Gutierrez, 46, of Odessa
Javier Lopez Lujan, 47, of Borger
Refugio Navarrete Gutierrez, 34, of Mexico
Manuel Carillo Ortiz, 38, of Mexico
Defendant, Israel Velasco, 35, of Odessa, pleaded guilty last month to one count of conspiracy to distribute and possess with intent to distribute cocaine. He faces a statutory maximum penalty of 20 years in federal prison and a $1 million fine.
Defendant, Jerardo Salcedo Garcia, 27, of Odessa, pleaded guilty last month to possession with intent to distribute cocaine. He, too, faces a statutory maximum penalty of 20 years in federal prison and a $1 million fine.
Defendant Ismael Velasco, 35, of Odessa, pleaded guilty last month to one count of unlawful use of a communication facility. He faces a statutory maximum penalty of four years in federal prison and a $250,000 fine.
The indictment was dismissed against Gisselle Lujan, 26.
Judge Cummings ordered presentence investigation reports on all the convicted defendants with sentencing dates to be set after the completion of those reports.
The Ector County Sheriff’s Office and the Drug Enforcement Administration assisted the Lubbock County Sheriff’s Office and ATF in the investigation.
Assistant U.S. Attorney Justin Cunningham is prosecuting the case.
Federal Grand Jury in Del Rio Indicts Midland Man on Attempted Murder Charges of Border Patrol AgentsRead the Press Release
In Del Rio today, a federal grand jury indicted CARL WAYNE WILEY for attempted murder of a federal
agent, announced United States Attorney Robert Pitman, Rodolfo Karisch, Del Rio Sector Chief Patrol Agent, U.S. Border Patrol, and Christopher Combs, Federal Bureau of Investigation (FBI) Special Agent in Charge of the San Antonio Division.
The four-count indictment alleges that on June 30, 2014, 48-year-old Carl Wayne Wiley of Midland, TX,
attempted to kill one or more United States Border Patrol Agents who were engaged in the performance of their official duties. The indictment further charges that the defendant, using a .45 caliber Ruger revolver, forcibly assaulted and interfered with one or more United States Border Patrol Agents. Defendant also was charged with two counts of carrying and discharging a firearm during the commission of a crime of violence.
Upon conviction, the defendant faces up to 20 years imprisonment each for the attempted murder charge and the assault charge. He faces up to 10 years for the use of a firearm during the commission of a crime of violence. The defendant remains in state custody pending an initial appearance before a United States Magistrate Judge in Del Rio.
Assistant United States Attorneys Chris Blanton and Ralph Paradiso are prosecuting this case on behalf of the government.An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
Edgewater, Maryland Man Sentenced to 42 Months in Prison for Defrauding SBA and IRS of More Than $7 MillionRead the Press Release
Fraudulently Obtained Over $52 Million in Government Contracts, Concealed Income by Transferring Millions from Corporate Accounts to Casinos and to Pay Other Personal Expenses,
and Filed False Tax Returns
Greenbelt, Maryland - U.S. District Judge Paul W. Grimm sentenced Vernon J. Smith III, age 61, of Edgewater, Maryland, today to 42 months in prison, followed by three years of supervised release, for conspiring to defraud the United States in connection with schemes to fraudulently seek federal contracts under a Small Business Administration (SBA) program to assist disadvantaged small businesses; and to defraud the IRS. Judge Grimm found that the actual loss to the government as a result of Smith’s offenses was $7,033,844, and entered an order requiring Smith to pay that amount in restitution and forfeiture.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Small Business Administration Inspector General Peggy E. Gustafson; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and General Services Administration Acting Inspector General Robert C. Erickson.
“When individuals defraud the government by falsely claiming eligibility for SBA’s 8(a) Business Development Program, the biggest victims are the taxpayers and legitimate small businesses,” said Inspector General Peggy E. Gustafson of the Small Business Administration. “We are committed to helping ensure that only eligible disadvantaged small businesses benefit from the Section 8(a) program. I want to thank the U.S. Attorney's Office for its dedicated leadership and professionalism in pursuit of justice served today.”
“Americans were victimized twice by the greed of Vernon Smith. Not only did Smith decide not to pay his fair share of federal taxes and ultimately defraud the IRS out of $839,016, his actions also denied legitimate business owners of socially and disadvantaged groups the opportunity to receive government contracts to which they were entitled,” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencing should put corrupt business owners, like Vernon Smith, on notice that the government will get to the truth no matter how they may try to conceal their involvement and income.”
“Contractors that defraud the United States to get GSA contracts will be held accountable,” said General Services Administration Acting Inspector General Robert C. Erickson.
Vernon Smith was the president and sole owner of Capitol Contractors since 2002. Capitol Contractors was a Maryland corporation with its headquarters in Capitol Heights, Maryland and later Edgewater, Maryland. Capitol Contractors had provided roofing and construction services but was largely dormant after 2002.In 1999, Vernon Smith caused a new roofing and construction company, Platinum One Contracting, Inc. (“Platinum”) to be incorporated in Maryland. Although Vernon Smith installed Anthony Wright, an African-American who was a former roofer and project manager at Capitol Contractors, to be the president and 60% owner, and Smith’s son was vice president and owned the remaining 40% of Platinum, Vernon Smith exercised complete and undisclosed control over Platinum’s business operations. Vernon Smith’s wife, Georgia Smith was in charge of Platinum’s accounting, and acted as the de facto Controller for the company.
Vernon Smith admits that from August 1999 to June 2013, he conspired to defraud the SBA in several ways. For example, Smith directed Wright to submit an application to the SBA for certification in the Section 8(a) program which did not reveal that Vernon Smith: exercised control over the company; had previously supervised Wright; owned more than 10% of Capitol Contractors; and was related to an owner of Platinum. From May 2004 through April 2010, Vernon Smith also caused Platinum to submit annual updates to the SBA Section 8(a) program that contained false information, including that the company was controlled by a socially and economically disadvantaged individual, and that no non-disadvantaged member of Platinum’s management received compensation that exceeded that received by Wright. In fact, Vernon Smith controlled the company, and Platinum’s payments to Vernon Smith and other corporate officers far exceeded payments received by Wright for 2004 through 2009. Based on the fraudulent application and annual updates, Platinum One received more than $52 million in contracts from the federal government under the Section 8(a) program, to which it was not entitled. The total loss to the government resulting from Vernon Smith’s illegal conduct, regarding the illicit profit he received by defrauding the SBA, and depriving a legitimate Section 8(a) contractor of such profit, is $6,194,828
Vernon Smith and his wife, Georgia Smith also transferred millions of dollars from Platinum to bank accounts in their own names, to casinos on their own behalf, to Capitol Contracting and another company owned by Vernon Smith, and to credit card companies to pay for personal expenses that Vernon and Georgia Smith charged to Platinum’s corporate credit cards, including extensive dental work, veterinary visits for personal pets, lavish vacations, a Royal Caribbean cruise, limousine transportation to casinos in Atlantic City, N.J., funeral expenses for a family relative, fencing for their personal residence, among others. Georgia Smith also mischaracterized numerous payments to casinos as subcontractor expenses.
In addition, Vernon and Georgia Smith signed false corporate and personal tax returns for 2005 and 2006. The Smiths knew that the cost of goods sold and payments to contractors reported on the corporate returns were false because almost all of that money was paid to, and for the benefit of, Georgia and Vernon Smith at casinos. They also knew that the income reported on their personal income taxes omitted hundreds of thousands of dollars that Capitol Contractors had paid to, and for their benefit. As a result, the Smith’s owed additional personal income tax to the IRS totaling $264,105, and Capitol Contractors owed an additional $574,911 to the IRS for tax years 2005 and 2006. The total tax loss resulting from Georgia and Vernon Smith’s conspiracy to defraud the IRS is $839,016.
Georgia Smith, age 52, of Edgewater, Maryland, pleaded guilty to conspiring to defraud the United States by filing false tax returns and is scheduled to be sentenced on July 21, 2014 at 11:00 a.m. Anthony Wright, age 42, of Bowie, Maryland, pleaded guilty to his role in the scheme and was sentenced on September 15, 2014, at 9:30 a.m.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the SBA Office of Inspector General; Defense Criminal Investigative Service; IRS Criminal Investigation; and the GSA Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin and Trial Attorney Kenneth C. Vert of the U.S. Department of Justice Tax Division, who are prosecuting the case.
Dubuque Men Plead Guilty to Methamphetamine Charge Related to Apartment FireRead the Press Release
Two men have pled guilty to a federal methamphetamine charge connected with a building fire that occurred in Dubuque on February 20, 2014.
John Starks Sr., age 46, and Casey Duhme, age 24, both of Dubuque, Iowa, were each convicted of conspiracy to manufacture methamphetamine near a school. Duhme and Starks pled guilty in federal court in Cedar Rapids on June 25, 2014 and June 26, 2014, respectively.
In their plea agreements, Starks and Duhme each admitted they agreed with others to manufacture methamphetamine from February 16 through February 20, 2014. Both Starks and Duhme admitted obtaining pseudoephedrine during this time period, and Starks admitted he purchased lye. The pseudoephedrine and lye were intended to be used in the manufacture of methamphetamine.
According to Duhme’s plea agreement, Starks and Duhme were both involved in an attempt to cook methamphetamine in Starks’s apartment located on White Street. The apartment was part of a multi-family apartment building located across the street from an elementary school. The attempted cook caused a fire to erupt in the upstairs bathroom of Starks’s apartment during the early morning hours of February 20, 2014. Starks sustained significant burns on his hands. Within a couple minutes of the fire starting, Starks, Duhme, and a third person fled the apartment. No one called 911 or alerted anyone about the fire. Several minutes later, a police officer doing routine patrol noticed smoke coming from the apartment building and evacuated residents. The roof of the apartment building collapsed shortly after the evacuation. The building is no longer habitable.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after presentence reports are prepared. Starks and Duhme both remain in custody of the United States Marshal pending sentencing. They each face a mandatory minimum sentence of 1 year imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $2,000,000 fine, $100 in special assessments, and at least 6 years and up to a life term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Justin Lightfoot and was investigated by the Dubuque Drug Task Force, the Dubuque Police Department, and the Dubuque Fire Department.Court file information is available at https://ecf.iand.uscourts.gov/ cgi-bin/login.pl. The case file number is 14-cr-1009.
District Man Sentenced to 10 Years in Prison for Shooting in Northeast Washington-Defendant’s Gunfire Hit Innocent Victim, Seriously Wounding Her-Read the Press Release
WASHINGTON – Gregory Harris, 24, of Washington, D.C., was sentenced today to a 10-year prison term on charges stemming from a shooting in Northeast Washington that seriously injured an innocent victim, U.S. Attorney Ronald C. Machen Jr. announced.
Harris pled guilty in April 2014, in the Superior Court of the District of Columbia, to charges of assault with intent to kill while armed and possession of a firearm during a crime of violence. He was sentenced by the Honorable Michael Ryan. Upon completion of his prison term, Harris will be placed on five years of supervised release.
According to the government’s evidence, the shooting followed a chain of events that began about 8 p.m. on May 24, 2013, outside a liquor store in the 1000 block of Bladensburg Road NE. When Harris arrived on the scene, he observed a friend of his involved in a physical altercation with another individual. While watching the fight, Harris saw a third person use a firearm to pistol-whip his friend in the head. He then ran down an adjacent alleyway, and, within a couple of minutes, he returned to Bladensburg Road.
By the time Harris returned to the street, the fight had stopped. The two men who had been fighting with his friend, and a woman who was not part of the altercation, were close to each other. They were heading south down Bladensburg Road, away from the scene of the fight, and no longer near Harris’s friend. Harris then used a firearm to shoot multiple bullets in the direction of the three people, aiming to hit the person who pistol-whipped his friend.
Instead, Harris shot the woman, hitting her in the neck and causing her to collapse on the street. As a result of getting shot in the neck, the victim has been mostly paralyzed below her neck, retaining only limited movement in her left arm.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case for the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including Paralegal Specialist Kalisha Johnson-Clark, Victim/Witness Specialists Jennifer Clark and David Foster, and Assistant U.S. Attorney Clayton O'Connor, who prosecuted the matter.
14-158Deported Citizen of El Salvador Sentenced to Time Served for Illegally Re-entering U.S.Read the Press Release
PITTSBURGH, PA - An alien found in Allegheny County, Pennsylvania, has been sentenced in federal court to time served on his conviction of charge of Illegal Re-Entry After Deportation, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Jose Hernandez-Segura, age 35, of El Salvador.
According to the information presented to the court, Jose Hernandez-Segura, an alien, was formally removed from the United States by United States Immigration and Customs Enforcement on January 25, 2012. Jose Hernandez-Segura was found to be illegally present in Allegheny County, Pennsylvania, on April 19, 2014.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the U.S. Department of Homeland Security, Immigration and Customs Enforcement for the successful prosecution of Jose Hernandez-Segura.
Connecticut Doctor Charged with Illegally Prescribing Oxycodone, Other Controlled SubstancesRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that DR. JOHN KATSETOS, 52, of Fairfield, was arrested yesterday on a charge that he exceeded the scope of his medical license to dispense controlled substances.
KATSETOS appeared today before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport and was released on a $1 million bond.
As alleged in a criminal complaint, DR. KATSETOS has practiced medicine for more than 20 years, most recently out of offices located at 90 Morgan Street in Stamford and 353 Bridgeport Avenue in Milford. KATSETOS operated as a general practitioner and was not a licensed as a pain specialist. A long-term Drug Enforcement Administration investigation, which included the use of undercover law enforcement personnel, revealed that KATSETOS was writing prescriptions for large quantities of Schedules II, III, IV and V controlled substances outside the scope of legitimate medical practice.
The complaint further alleges that a vast majority of these prescriptions were for medications that contain oxycodone, and that KATSETOS prescribed oxycodone despite awareness that his patients were addicted, had been arrested for possessing and distributing controlled substances, or were not actually using oxycodone themselves.
The complaint charges KATSETOS with conspiracy to distribute and to possess with intent to distribute controlled substances, as offense that carries a maximum term of imprisonment of 20 years and a fine of up to $1 million.
U.S. Attorney Daly stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA’s New Haven Tactical Diversion Squad and the Office of Inspector General of the U.S. Department of Health and Human Services, with the assistance of the State of Connecticut Department of Consumer Protection Drug Control Division, and several local police departments. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Alina Reynolds.
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U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Chinese National Pleads Guilty in Scheme to Fraudulently Obtain Technology Products from U.S. CompaniesRead the Press Release
Sought to Fabricate an Infrared Detector for Night Vision,
Missile Detection and other Military Applications
Greenbelt, Maryland – Zhenchun Huang, a/k/a Ted Huang, age 51, a Chinese national and naturalized U.S. citizen, formerly residing in Clarksville, Maryland, pleaded guilty today to false personation of a federal employee and obstruction of justice, in connection with a scheme to fraudulently obtain technology products from U.S. companies for export to China.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Rick Shimon, Special Agent in Charge, U. S. Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement.
According to his plea agreement, Huang worked as a contract scientist at the National Aeronautics and Space Administration’s (NASA) Goddard Space Flight Center in Greenbelt from February 1995 to June 2001. Thereafter, he consulted on a limited basis until October 2003 to provide as-needed assistance on a specific Goddard project.In April 2001, Huang incorporated Allray in Maryland for the stated purpose of forming joint ventures with Chinese governmental and private entities to research, develop and distribute telecommunication and information technology products. Though Allray’s principal place of business was listed as Huang’s place of residence, its entire base of operations was located in China.
During the latter part of 2003 and into early 2004, in an effort to obtain technological components for use by Allray, Huang falsely represented to three U.S. companies that he was employed by NASA and was working on a joint project between NASA and Allray. No such joint project existed. The components which Huang sought included cadmium zinc telluride (CZT) and mercury cadmium telluride (MCT) wafers, considered dual-use technology subject to U.S. export controls. These products were unrelated to Huang’s former work at NASA.
In order to make it appear as though NASA was involved in procuring these products, Huang directed that purchased items be shipped to an associate employed at Goddard; used a Goddard email account to communicate with the companies and subsequently redirect emails to his personal email account; faxed (or had faxed) a purchase order from a number associated with Goddard; and presented his former business card to companies that identified him as a contract employee of NASA/Goddard.
In late October 2003, as a result of his false representations, Huang obtained five CZT wafers from Company 1 and four silicon wafers from Company 2. Huang directed his associate working at Goddard to ship two of the CZT wafers to Company 2 so it could apply a specific growth process to add a layer of MCT to the wafers. Huang also directed his associate to buy 10 additional CZT wafers for $10,620 from Company 3. Thereafter, the associate mailed to Company 2, from the Goddard shipping facility and at government expense, two of the CZT wafers Huang had purchased from Company 1. The associate also sent an email from his Goddard email account to Company 3 falsely stating that NASA would be purchasing, through Allray, the 10 CZT wafers sought by Huang.
Company 3 subsequently determined that Allray was a Chinese company headed by Huang, and that the shipping/billing address provided for the purchase was a residential address. Accordingly, Company 3 did not sell the CZT wafers, and the MCT wafers were never manufactured. If successful, the MCT growth process requested by Huang would have fabricated a type of infrared detector suitable for military applications, such as night vision and missile detection, that would have been controlled for export to China. The 10 CZT wafers sought from Company 3 were similarly controlled for export.
In October 2003, Huang bought optoelectronic epoxy from Company 4. Huang directed that the item be shipped to NASA/Goddard, thereby suggesting that the purchase was related to government business. However, Huang provided his residential address for the shipment. Between February and April 2004, Huang tasked his associate with finding an optical filter that could be used in ultraviolet applications. The associate used his Goddard email account to contact Company 5 to obtain a price quote, which he then forwarded to Huang, but the filter was never purchased.
In the fall of 2005, Huang entered into an agreement with company X, which was co-founded by his associate, to build a prototype ultraviolet non-line-of-sight communications system for Allray. From December 2005 to April 2006 and in connection with its agreement with Huang, company X purchased 34 ultraviolet light emitting diodes (UV/LEDs) from Company 6, at a total cost of $3,556. The technical specifications of the purchased UV/LEDs, and the manner in which they were to be used, suggested an application more consistent with a covert communications device. Huang had initially contacted Company 6 in October 2005, following an email introduction by his associate, to offer Allray’s services in packaging the company’s UV/LEDs. Huang indicated that Allray was located in China, but falsely stated that Allray’s customers were mainly in the United States. Company 6 did not respond to Huang’s offer. Huang’s associate, who had dealings with Company 6 in his capacity as a NASA employee, never advised Company 6 of his association with company X. In early May 2006, the associate demonstrated to Huang a prototype of the device being built for Allray. At that time, Huang was given two of the diodes obtained from Company 6.
On May 8, 2006, U.S. Customs officials at O’Hare International Airport in Chicago inspected Huang and his luggage just prior to his outbound flight to China. Two of the UV/LEDs purchased from Company 6 were found in Huang’s luggage. Huang made false statements regarding who had given him the diodes, what they were worth, what company had manufactured them, and how they would be used in China. He also provided false information regarding the technical specifications of the diodes.
Huang subsequently directed his wife not speak to, or ask, anyone about what had happened at the airport; to say she did not know anything if questioned; to throw away the box that had originally contained the UV/LEDS found in his luggage; and to clean out their residence. In response, his wife threw away the UV/LED box and certain Allray documents in their home. She deleted all Allray-related files from their home computer, though she saved certain Allray files on a thumb drive. The government recovered some of the documents, including identifying and financial information for Allray’s investors in the United States, Allray’s IPO plan, a 2006 PowerPoint presentation charting Allray’s accomplishments in China, and an article on a short-range, non-line-of-sight ultraviolet communication device.
Following the commencement of the government’s investigation of the scheme, Huang absconded to China and was a fugitive until his arrest in London in December, 2013. Feng Yan, age 46, formerly of Ellicott City, Maryland, was also charged by indictment for his alleged participation in the scheme and is currently a fugitive.
Huang and the government have agreed that if the Court accepts the plea agreement, Huang will be sentenced to 15 months in prison. U.S. District Judge Roger W. Titus scheduled sentencing for October 20, 2014 at 9:00 a.m.
United States Attorney Rod J. Rosenstein praised the FBI, HSI Baltimore and Department of Commerce for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Christine Manuelian, who is prosecuting the case.Chinese National Arrested for Conspiring to Steal Trade SecretsRead the Press Release
DES MOINES, IA - United States Attorney Nicholas A. Klinefeldt announced today the arrest and indictment of MoYun, for conspiracy to steal trade secrets. Mo Hailong was previously arrested in December of 2013. The Superseding Indictment alleges that from on or about January of 2007, to on or about December of 2012, Mo Hailong, Mo Yun and other individuals conspired to steal the trade secrets of several U.S. based seed manufacturing companies, and transport those trade secrets to China for the benefit of their China-based seed company.
Mo Yun is a Chinese national who was employed by Beijing Dabeinong Technology Group Company (DBN) from August 2001 to March 2009. DBN is believed to be a Chinese conglomerate with a corn seed subsidiary company, Kings Nower Seed. Born in 1972, Mo Yun was in charge of DBN’s research project management. Yun is the sister of Mo Hailong and the spouse of DBN founder and current chairman Dr. Shao Genhuo.
During the course of the conspiracy, Mo Yun, Mo Hailong and others are alleged to have conspired to steal valuable inbred corn seed from production fields in Iowa and Illinois. This “inbred” or “parent” line of seed constitutes valuable intellectual property of a seed producer. After stealing the inbred corn seed, conspirators attempted to covertly transfer the inbred corn seed to China.
The investigation was initiated when DuPont Pioneer security staff detected suspicious activity, and alerted the Federal Bureau of Investigation (FBI). DuPont Pioneer, Monsanto and their staff have been fully cooperative throughout the investigation, which is being led by the FBI.
“The FBI’s investigation into Mo Yun should not go unnoticed by those who seek to steal trade secrets and private business information,” said Thomas R. Metz, Special Agent in Charge of the Omaha Division of the FBI. “Identifying and deterring those focused on stealing trade secrets, propriety and confidential information or national security information is the number two priority for the FBI second only to terrorism.”
In accordance with the Iowa Rules of Professional Conduct, the public is reminded that a criminal indictment constitutes facts supporting probable cause, and that the defendants are presumed innocent until and unless proven guilty.
(Download Press Release )
Cedar Rapids Man Sentenced to 10 Months for Failing to Register as A Sex OffenderRead the Press Release
A man who failed to register as a sex offender was sentenced today to ten months in federal prison.
Kendall Woodall, age 35, of Cedar Rapids, Iowa, received the sentence after a March 24, 2014, guilty plea to one count of failing to register as a sex offender. At the guilty plea hearing, Woodall admitted that he moved from Missouri to Iowa and did not register as a sex offender in Iowa. Woodall was required to register because of his 2002 Missouri convictions for statutory rape and statutory sodomy.
Woodall was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Woodall was sentenced to ten months’ imprisonment. A special assessment of $100 was imposed, and Woodall must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the United States Marshals Service and the Iowa Division of Criminal Investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-31.
CaliforniaRead the Press Release
Man Sentenced On Charges Of Conspiracy To Distribute More Than 5 Kilograms Of Cocaine And 1000 Kilograms Of Marijuana And Money Laundering Charges
CONCORD, NEW HAMPSHIRE – Jon Hagstrom, 34, of North Hollywood, California, was sentenced in United States District Court for the District of New Hampshire 126 months in prison after pleading guilty to conspiracy to distribute more than 5 kilograms of cocaine and more than 1000 kilograms of marijuana, conspiracy to commit money laundering and aiding and abetting the possession of more than 5 kilograms of cocaine with the intent to distribute, announced United States Attorney John P. Kacavas.
Between the summer of 2007 and August of 2009, members of the conspiracy, who had ties to a Canadian criminal organization, imported more than 1000 kilograms of exotic/high grade marijuana into the United States for distribution in the New England area, including New Hampshire, and New York. The organization used the proceeds received from the distribution of the marijuana to purchase more than 150 kilograms of cocaine from California which was then exported to Canada. Hagstrom was the source of the cocaine.
The defendant worked with other co-conspirators to coordinate the transport of the cocaine from California to New Hampshire and elsewhere in New England. On each occasion, the defendant directed couriers to transport approximately 25 to 50 kilograms of cocaine from California to New Hampshire and elsewhere in New England. The defendant also directed the couriers to pick up millions of dollars in marijuana drug proceeds and transport those drug proceeds back to him in California. The defendant also used private jets to travel from California to the Boston, Massachusetts area to pick up illegal marijuana drug proceeds.
During its investigation and prosecution of the 23 individuals involved in the drug conspiracy, the United States seized over three million dollars, over 1000 kilograms of marijuana and over 50 kilograms of cocaine. Hagstrom forfeited $90,000.00 in property to the United States and was the last defendant sentenced in the investigation.
The investigation was conducted by the Drug Enforcement Administration, Internal Revenue Service, Department of Homeland Security, Customs and Border Protection and Massachusetts State Police. The case was prosecuted by Assistant U.S. Attorneys Debra M. Walsh, Robert Kinsella and Robert Rabuck.
Boston Man Charged in Twitter HackRead the Press Release
SAN JOSE – Cameron Lacroix was charged today in San Jose with hacking Zendesk, a San Francisco company that provides helpdesk support to numerous companies, including Twitter, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to the criminal information, Lacroix, 25, of New Bedford, Mass., hacked into Zendesk’s website in February 2013 and disabled a security feature designed to limit who can view information pertaining to Zendesk’s customers. The information charges that Lacroix exported approximately one million Twitter support tickets to computers outside of Zendesk’s network and that he used that information to compromise and deface the Twitter feeds for two companies. The information further alleges that Zendesk and Twitter incurred combined losses of over $200,000 responding to the attacks.
Lacroix is expected to make his first appearance on Aug. 8, 2014, in the District of Massachusetts, where he is also facing federal charges in No. 14-CR-10162-MLW. Lacroix is out of custody in the Boston case, having been released on a $50,000 personal recognizance bond.
An information merely alleges that crimes have been committed; all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted of the offense charged in the information, a violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B), the defendant would face a maximum sentence of 10 years, and a fine of $250,000, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
David R. Callaway is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter and Lakisha Holliman. The prosecution is the result of an investigation by the FBI.
(Lacroix information )
Alleged Sports Bookie Charged with Filing A False Tax ReturnRead the Press Release
Albert A. Riccardi, 64, of Sewell, NJ, was charged today by Information with filing a false tax return, announced United States Attorney Zane David Memeger. The Information charges that from 2009 through 2012, Riccardi operated a sports bookmaking operation and accepted payments from his bettors in the form of checks, money orders, and cash. The Information alleges that in 2010 and 2011, Riccardi failed to report the income from his bookmaking operation, thereby underreporting his income for each year by over $98,000 and $185,000, respectively.
If convicted, the defendant faces a maximum possible sentence of three years of imprisonment, one year of supervised release, a $100,000 fine, and a $100 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Nancy E. Potts.Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Albuquerque Man Pleads Guilty to ATM Robbery Spree in Summer 2013Read the Press Release
ALBUQUERQUE – Kelvin L. Dickerson, of Albuquerque, N.M., pleaded guilty this morning to committing a series of robberies in the summer of 2013.
Dickerson and his co-defendant, Dominique Dickens, also of Albuquerque, were arrested in Dec. 2013, on an eight-count indictment charging them with conspiracy and seven Hobbs Act robberies. According to the indictment, between June 2013 and early Sept. 2013, Dickerson and Dickens allegedly engaged in a scheme to rob employees of business engaged in interstate commerce in Bernalillo County, N.M. Dickens allegedly would drive Dickerson to automatic teller machines (ATMs) where Dickerson would rob individuals who were making deposits. Dickens allegedly would pick Dickerson up after he committed the robberies and drive him away.
Today Dickenson entered a guilty plea to the indictment and admitted that he and his co-defendant conspired to rob individuals who were making deposits into ATMs between June 28, 2013 and Sept. 5, 2013. Dickenson also admitted robbing seven individuals during that time period. The victims of Dickenson’s criminal conduct were employed by One Main Financial, Loan Max Title Loans, Church’s Chicken, National Insurance, Sonic and Radio Shack, all of which are businesses engaged in interstate commerce.
At sentencing, Dickenson faces a maximum statutory penalty of 20 years for each of the eight charges. Dickenson remains detained pending his sentencing hearing, which has yet to be scheduled.
His co-defendant, Dickens, has entered a not guilty plea and remains on conditions of release pending trial, which has yet to be scheduled. Charges in an indictment are merely accusations and Dickens is presumed innocent unless found guilty beyond a reasonable doubt.
This case was brought as part of a law enforcement initiative launched in July 2012, by the FBI’s Violent Crimes and Major Offender Squad and the Albuquerque Police Department’s Armed Robbery Unit that targets suspects implicated in commercial armed robberies. This initiative is part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under the worst of the worst anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from our communities for as long as possible.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
Alabama Tax Preparer Indicted for Stolen Identity Refund FraudRead the Press Release
Teresa Floyd, of Phenix City, Alabama, was indicted for her alleged involvement in a stolen identity refund fraud scheme, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment.
Floyd has been charged with several counts of wire fraud and aggravated identity theft. According to the indictment, Floyd owned and operated a tax preparation business called T & L Tax Service that was located in Phenix City. Floyd obtained the means of identification of individuals and used those identities to file fraudulent income tax returns. In order to conceal her scheme, Floyd created fictitious identification documents and bills in the names of those individuals. The indictment also seeks to forfeit $320,397 from Floyd .
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Floyd faces a statutory maximum sentence of 20 years in prison for each wire fraud count and a mandatory two year sentence for the aggravated identity theft counts. Floyd is also subject to fines, forfeiture and restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorney Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama are prosecuting the case.
21 Year Fugitive Former Daly City Resident Found Through Facebook Makes Court AppearanceRead the Press Release
SAN FRANCISCO – Francisco R. Legaspi made his initial appearance in federal court yesterday morning for failing to appear for his sentencing on Jan. 28, 1993, U.S. Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez, announced.
According to court documents, Legaspi, 61, of London, Ontario, Canada, formerly of Daly City, was indicted on Aug. 19, 1992 on three counts of aiding and filing false quarterly employment tax returns for Mission Childcare Consortium in violation of 26 U.S.C.§ 7206(2). He pleaded guilty on Nov. 9, 1992 to one count of the Indictment. Legaspi was scheduled to be sentenced on Jan. 28, 1993, but failed to appear in court. A bench warrant was issued for his arrest for his failure to appear. On Feb. 24, 1993, an Indictment was returned against him charging him with failure to appear in violation of 18 U.S.C. § 3146.
Legaspi was located in Canada in 2012, after the Bureau of Diplomatic Security researched social media websites and found Legaspi’s Facebook page. The Royal Canadian Mounted Police used the information to apprehend Legaspi. Thereafter, he was extradited from Canada to the United States with the assistance of the U.S. Justice Department’s Office of International Affairs.
On July 1, 2014, Legaspi entered a not guilty plea to the Indictment charging him with failure to appear. Legaspi’s next court appearance is scheduled for July 8, 2014, before the Honorable Richard Seeborg, United States District Court Judge in San Francisco.
The maximum penalty for aiding and assisting in the filing of false tax returns, in violation of Title 26 U.S.C. § 7206(2), is three years in prison and a fine of $250,000. The maximum penalty for failure to appear, in violation of Title 18 U.S.C. § 3146, is two years in prison and a fine of $250,000.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation with assistance from the Bureau of Diplomatic Security and the Royal Canadian Mounted Police and United States Department of Justice, Office of International Affairs.
(Legaspi indictment 92-0394 )
(Legaspi indictment 93-0096 )
Tuesday 1 July 2014
Windber Man Pleads Guilty to Possession of Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Windber, Pa., pleaded guilty in federal court to a charge of possession of child pornography, United States Attorney David J. Hickton announced today.
Donald T. Reese, 69, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that on April 28, 2011, Reese knowingly possessed videos in individual computer graphic files which were produced using minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
Judge Gibson scheduled sentencing for Dec. 15, 2014, at 1 p.m. The law provides for a total sentence of ten years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Southwest Computer Crime Task Force of the Pennsylvania State Police conducted the investigation that led to the prosecution of Reese.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney's Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Waterville Woman Sentenced to 15 Months on Immigration, Money Laundering and Tax ChargesRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Mei Ya
Zhang, 29, of Waterville, Maine, was sentenced today in U.S. District Court by Chief Judge
John A. Woodcock, Jr. to 15 months in prison to be followed by 3 years of supervised release for
harboring undocumented aliens for commercial advantage and private financial gain, money
laundering conspiracy, and conspiracy to file false employer's quarterly federal tax returns. She
was also ordered to pay more than $88,000 in restitution to the Internal Revenue Service
(IRS). Zhang pled guilty to the charges on June 5, 2013.According to court records, between 2006 and 2011, the defendant was the manager of
the Twin Super Buffet, located on State Street in Brewer, Maine. In that capacity, she managed
a Chinese buffet restaurant that brought undocumented aliens into Maine to work, had them
work six days per week, eight to 10.5 hours per day, housed them in squalid conditions at a
residence on Elm Street in Brewer, transported them back and forth each day to work, paid them
under the table with cash generated illegally by the employment of undocumented aliens, and
filed numerous false quarterly employment tax returns in which the undocumented aliens were
not disclosed and employment taxes were not properly withheld or paid. The investigation
revealed that about half of the employees at the buffet over that period were undocumented, and
that the defendant’s activities concealed about $400,000 in wages and thwarted the collection of
about $88,000 in employment taxes.
In imposing sentence, Chief Judge Woodcock noted that a primary obligation of
citizenship is to obey the law. In this case, over a five year period, the defendant illegally hired
undocumented aliens and paid them in cash under the table even after telling federal agents that
she had stopped doing so. As a result, she unfairly competed with legitimate restaurants that
paid their employees fair wages and that properly withheld and remitted employment taxes to the
government.
The investigation was conducted by the U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations; IRS-Criminal Investigation; and the U.S. Department of
Labor, Office of Inspector General, Office of Labor Racketeering & Fraud Investigations; with
assistance from the Brewer Police Department.VA Hospital Nurse’s Aide Charged with Theft from PatientRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Warren T. Wells, of Moscow, Pennsylvania, was charged today with theft in connection with an incident at the Veterans Administration Hospital in Wilkes-Barre, on December 13, 2013.
According to United States Attorney Peter Smith, a criminal information was filed in U.S. District Court in Scranton charging Wells, a nurse’s aide employed by the VA, with theft of a golden crucifix necklace from a patient/veteran being treated at the VA Hospital. Wells was originally charged by local authorities. That prosecution will be withdrawn in favor of the federal charge. Wells has been placed on administrative leave by the VA pending the outcome of the criminal case.
The VA Hospital is a federal facility and alleged crimes on the premise are subject to prosecution in federal court.
If convicted, Wells could be sentenced to a statutory maximum of up to five years’ imprisonment and a fine of $250,000.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The investigation was conducted by the U.S. Department of Veterans Affairs Police. The case is assigned to Assistant United States Attorney Todd K. Hinkley for prosecution.
U.s. Attorney Announces Arrest and Charging of Former Center Township OfficialRead the Press Release
Township Chief Financial Officer embezzled over $343,000 in Public Money
INDIANAPOLIS B The United States Attorney, Joseph H. Hogsett announced this afternoon the arrest and charging of Alan S. Mizen, 59, Zionsville. Mizen served as the Chief Financial Officer for Center Township in Marion County, Indiana, from November 2001 through January 2011. Mizen now faces prosecution for Theft/Embezzlement of Federal Program Funds as the U.S. Attorney's Office has redoubled its efforts to combat, identify, investigate and root out public corruption by elected and appointed officials in Indiana through the activities of the Public Integrity Working Group.
"The message of this office has been consistent over the last two years, but bears repeating today: it doesn't matter what your politics are or what position you hold in our community," Hogsett said. "If you do not uphold the public trust, our Public Integrity Working Group will find you, investigate you and the U.S. Attorney's Office will prosecute you to the fullest extent of the law."
A federal criminal complaint, unsealed this morning, charges Mizen with theft concerning programs receiving federal funds. The complaint alleges that Mizen set up an account with PNC Bank and deposited a check in the amount of $343,541.08 that was drawn from public funds into the PNC Bank account. Mizen then used the computerized accounting system at the Center Township Trustees Office to create a false invoice indicating that he had written the check to the “Treasurer of State.”
Mizen proceeded to transfer the funds that he deposited into the PNC Bank account to various personal accounts that he maintained. From the personal accounts, Mizen allegedly used over $200,000 to help purchase a residence in Zionsville, purchase a Toyota Tacoma pickup truck, fund his child’s college education, finance personal vacations, purchase a diamond necklace and diamond ring for $8,900 during a trip to the Cayman Islands, and make other consumer purchases. Mizen’s used taxpayer funds to finance these personal expenditures from June 10, 2010 through July 2012.
In addition to arresting Mizen, federal authorities froze a bank account and investment account that Mizen used to channel the embezzled funds. Federal authorities seized the 2009 Toyota Tacoma, diamond ring, and diamond bracelet that Mizen purchased in the Cayman Islands with the embezzled funds. Federal authorities also filed a lis pendens on his residence in Zionsville, which prohibits Mizen from transferring his interest in the real estate until the resolution of the criminal case.
Hogsett explained this case was the result of outstanding law enforcement work by the Federal Bureau of Investigation and Indiana State Board of Accounts, with the assistance of the Internal Revenue Service. All three agencies are partners in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of public fraud, waste and abuse by public officials in Indiana. Hoosiers with information on public corruption are encouraged to contact the U.S. Attorney's Office at (317) 229-2443.
Federal Bureau of Investigation Acting Special Agent in Charge Kevin Lyons said, “Citizens are owed integrity at all levels of government.”
Internal Revenue Service Criminal Investigation Special Agent in Charge James C. Lee stated, “When public officials commit crimes, whether as part of their official duties or in their private lives, they are violating the public trust. IRS-Criminal Investigation helps ensure that all Americans, including public officials, are held to the same standard.”
According to Assistant United States Attorney Bradley A. Blackington, who is prosecuting the case for the government, Mizen could be sentenced to up to ten years in federal prison, and could also face significant fines and federal supervision for up to three years once he has served his prison term.
An indictment or complaint are only charges and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Postal Service Employee Pleads Guilty to Tax FraudRead the Press Release
Aaron H. Kelly, a U.S. Postal Service employee, pleaded guilty today in the U.S. District Court for the District of Maryland to aiding and assisting in filing a false tax return with the Internal Revenue Service (IRS), the Justice Department and IRS announced today. Kelly was indicted on Feb. 24, 2014, for allegedly engaging in a scheme to defraud the IRS, the Thrift Saving Plan and the Educational Systems Federal Credit Union by sending fictitious financial instruments to fraudulently extinguish the debts he owed to them, and for aiding in filing false tax returns with the IRS.
According to the plea agreement, in 2008, Kelly submitted a false individual income tax return for tax year 2006 to the IRS. On this tax return, Kelly falsely claimed that he had substantial federal income tax withheld, and fraudulently represented that he was entitled to a refund of $193,653. Sentencing is set for Feb. 2, 2015, where Kelly faces a statutory maximum sentence of three years in prison.
This case was investigated by special agents of the Treasury Inspector General for Tax Administration and IRS - Criminal Investigation. Trial Attorneys Ken Vert and Yael T. Epstein of the department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
U.S. Leader of Sophisticated, Violent Fraudulent Document Ring Sentenced to More Than 11 Years for Racketeering, Attempted Robbery, and Money LaunderingRead the Press Release
RICHMOND, Va. – Manuel Hidalgo Flores, 40, a Mexican National who resided in Pawtucket, Rhode Island was sentenced earlier today to 135 months’ imprisonment for his role in a violent criminal organization that specialized in manufacturing and distributing fraudulent identifications. Hidalgo Flores previously pleaded guilty to Conspiracy to Engage in Racketeering, Interference with Commerce by Robbery, and Conspiracy to Launder Money. Further, the defendant is illegally within the United States and faces deportation following the service of his prison sentences.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Clark Settles, Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), made the announcement after the 135 month sentence was handed down by Senior United States District Judge James R. Spencer.
According to court papers, this defendant is connected to a Fraudulent Document Enterprise (FDE) previously prosecuted in the Eastern District of Virginia in United States v. Israel Cruz Millan, Case No. 3:10CR308. The FDE which originally operated in the United States beginning prior to 2008 and continuing through November 18, 2010, had cells in Richmond, Norfolk, Virginia Beach, and Manassas, Virginia; Fayetteville and Little Rock, Arkansas; New Haven, Connecticut; Mishawaka, Indiana; Lexington and Louisville, Kentucky; Chelsea, Massachusetts; St. Louis, Missouri; Chapel Hill, Greensboro, Raleigh, and Wilmington, North Carolina; Cincinnati, Ohio; Providence, Rhode Island; and, Nashville, Tennessee. The criminal enterprise was dismantled within the United States on November 18, 2010. In the prior case and connected prosecutions, a total of 30 defendants were convicted. On February 16, 2012, United States District Judge James R. Spencer sentenced the overall leader, Israel Cruz Millan to 300 months’ imprisonment. On March 2, 2012, United States District Judge Henry E. Hudson sentenced Oliverez-Jiminez to two consecutive life terms in prison, after his conviction by a jury for racketeering, murder, kidnapping, conspiracy to commit money laundering, and conspiracy to produce and transfer false identification documents.
In connection with his previous guilty plea, Hidalgo Flores admitted to his role in restarting and leading the FDE’s continued criminal activities in the United States following the 2010 arrests described above. Beginning at some point prior to February 2012, Hidalgo Flores, also known as “Chino,” “Chimuelo” and “Julio,” began managing the organization’s operations in the United States, supervising operations in Richmond, Virginia; Springdale, Arkansas; Boston, Massachusetts; Raleigh, North Carolina; Cincinnati, Ohio; and Pawtucket, Rhode Island. As in the previous case, the FDE produced high-quality false identification cards for distribution to illegal aliens. In most cities where the organization operated, Hidalgo Flores placed a cell manager to supervise a number of “runners,” the lower level members of the organization who distributed business cards advertising the organization’s services and helped facilitate transactions with customers.
Within each cell supervised by Hidalgo Flores, the cell manager was responsible for distributing the fraudulent documents using information obtained from clients by “runners.” The runners would recruit illegal alien clients who wished to obtain false identification documents, including counterfeit Permanent Resident Alien Cards (also known as “Green Cards”), Social Security Cards, out-of-state identification cards, and various international documents. Upon identifying a specific client, a runner would relay identifying information and photographs from the client to the printer via cellular telephone or other method. The printer would, in turn, use a computer and printer to create fraudulent identification documents for the client, depending on the nature of the order received from the client. Once the documents were complete, the runner would usually provide the documents to the client in exchange for United States currency. A client would generally pay approximately $150 for a set of fraudulent identification documents (such as a Permanent Resident Alien Card and Social Security Card). Each cell maintained detailed sales records and divided the proceeds between the runner, the cell manager, and the upper level managers in Mexico. In addition, the FDE used Western Union and MoneyGram to funnel criminal proceeds to Mexico.
The evidence during the Oliverez-Jiminez trial detailed how members of the organization sought to drive competitors from their territory by posing as customers in search of fraudulent documents and then attacking the competitors when they arrived to make a sale. In the current case, Hidalgo Flores admitted to his role in targeting a competitor in the Richmond, Virginia area on October 6, 2013. This defendant, along with others, identified a competitor (referred to as “L.G.”) who was selling fraudulent documents in competition with the Richmond cell. A co-defendant posed as a customer and contacted L.G. about setting up a fraudulent documents transaction. L.G. then met with the co-defendant at a designated location. At the same time, Hidalgo Flores, along with other FDE members, were surveilling the transaction. The defendants planned to follow competitor L.G. after the transaction to find where he (L.G.) produced fraudulent identification documents. The group intended to assault L.G. and steal L.G.’s printing equipment by means of actual and threatened force, violence, and fear of injury. Through this planned conduct, FDE members hoped to stop L.G. from selling fraudulent identification documents and to enhance the FDE’s control of the Richmond area fraudulent document market. Unbeknownst to the FDE members, law enforcement officers were also surveilling the October 6, 2013 transaction. Due to law enforcement intervention, competitor L.G. was detained during a traffic stop and the FDE members fled the area. According to his plea documents, Hidalgo Flores admitted that absent law enforcement intervention, he and his cohorts would have carried out their plan against L.G.
To date, 42 members of this organization charged in the Richmond, Virginia federal cases have been convicted. In the current case, 11 defendants are awaiting sentencing, with their hearings scheduled before Judge Spencer over the next two months.
The case was investigated by the Richmond and Norfolk offices of ICE’s Homeland Security Investigations (HSI), which falls under the Washington, D.C., office. ICE HSI received assistance from the Virginia State Police, Chesterfield County Police Department, and Henrico County Police Department. Assistant United States Attorney Michael Gill and Trial Attorney Maria Gonzalez Calvet, of the Criminal Division's Fraud Section, are prosecuting the case on behalf of the United States
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
U.S. Government Contractor Sentenced to 24 Months for Tax FraudRead the Press Release
Memphis, TN – Darrin Albert Searle, 44, of Loudon, TN, was sentenced today to 24 months in federal prison following his guilty plea to one-count of filing a false tax return, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the facts alleged in the information and revealed during the sentencing hearing, while working as a government contractor in Iraq in 2007, Searle failed to disclose $618,186 of income he received through kickbacks. Searle is required to file amended returns and pay all relevant taxes, interest, and penalties.
In addition to the prison sentence, United States District Judge John T. Fowlkes, Jr. ordered Searle to serve one year of supervised release and to pay $58,422 in restitution to the Internal Revenue Service. There is no parole in the federal prison system.
This case was investigated by the Special Investigator General for Iraq Reconstruction (SIGIR), the Department of the Army’s Criminal Investigative Division, Defense Criminal Investigative Service, and Internal Revenue Service Criminal Investigations. Assistant U.S. Attorney Fred Godwin represented the government.U.S. Files Complaint and Consent Decree Against Mira Health and Senior OfficersRead the Press Release
The United States has filed a complaint and the U.S. District Court for the Eastern District of New York has entered a consent decree against Mira Health Ltd. (Mira), its chief operating officer, Michael S. Ragno Sr., and its quality assurance manager, Michael S. Ragno Jr., all of Farmingdale, New York.
Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division and U.S. Attorney Loretta E. Lynch of the Eastern District of New York made the announcement.
The lawsuit alleges that the defendants violated the Federal Food, Drug and Cosmetic Act (FDCA) by manufacturing and distributing dietary supplements that were adulterated. Under the FDCA dietary supplement manufacturers are required have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. The government’s actions resulted from a series of inspections of Mira’s manufacturing facility, which revealed, among other things, that Mira failed to ensure that components, dietary supplements, packaging and labels were not mixed-up, contaminated or deteriorated.
In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the FDCA. The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if the defendants wish to resume manufacturing dietary supplements in the future, the FDA first must determine that Mira’s manufacturing practices have come into compliance with the law. The consent decree was entered by the court today.
Mira gained national attention in July 2013 when Purity First Health Ltd, a company that sold dietary supplements manufactured by Mira, became the subject of an FDA recall. Anabolic steroids were found to be present in the Healthy Life Chemistry By Purity B-50 dietary supplement. At the time of the recall, 29 illnesses and one hospitalization had been documented.
The FDA referred this matter to the Department of Justice. The Consumer Protection Branch of the Justice Department’s Civil Division together with the U.S. Attorney’s Office for the Eastern District of New York filed this case on behalf of the United States.Related Materials:
Consent Decree
ComplaintTwo Chiropractors Involved in Insurance Fraud Schemes Are SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two chiropractors convicted of charges stemming from an investigation into health care and insurance fraud were sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport. JENNIFER LYNNE, 41, of Milford, was sentenced to three years of probation, the first six months of which she must serve in home confinement with electronic monitoring. GEORGE U. DeCARVALHO, 57, of Stamford, was sentenced to three years of probation, during which he must perform 90 hours of community service.
This matter stems from “Operation Running Man,” a 14-month undercover fraud investigation headed by the Federal Bureau of Investigation. The investigation, which included the use of recordings by an undercover FBI special agent, revealed that Joseph P. Haddad, a Bridgeport-based personal injury attorney, conspired with chiropractors and others to defraud several insurance companies by exaggerating the auto accident injuries of Haddad’s clients, and the cost of their medical care, to justify larger monetary settlements with the insurance companies. As part of the scheme, the co-conspirators fabricated medical records, prescribed unnecessary pain medication, performed unnecessary chiropractic treatment, ordered and billed for diagnostic tests of questionable medical value, and overstated injuries or permanent partial disabilities that were allegedly caused by the accidents.
Between December 2006 and February 2010, Haddad conspired in the scheme with Francisco R. Carbone, who had been licensed to practice medicine until his license was revoked by the State of Connecticut in March 2005, and with Dr. Marc Kirshner, who owned and operated two chiropractor offices in Bridgeport and one in Stamford.
As part of the scheme, Haddad paid “runners” to locate and deliver to him clients for his personal injury practice. Haddad then regularly instructed clients to see Carbone for purported medical treatment, even though Haddad was aware that Carbone had lost his medical license. Carbone provided Haddad’s clients with prescription pain medication, even if the medication was not needed and, in reports, fabricated the clients’ injuries, medical conditions and permanent partial disability ratings. In multiple instances, Carbone did no medical examination at all. Carbone billed the victim insurance carriers in his name or in the name of another physician for services he allegedly rendered, and provided prescriptions, bills, medical reports and final reports to Haddad, who submitted the documents to the victim carriers to support requests for settlement.
Haddad also referred clients to Dr. Kirshner’s Bridgeport chiropractor offices, which operated under the name Health First Medical, P.C. Kirshner often permitted Haddad to influence the course of patients’ medical treatments by acquiescing to Haddad’s instructions that a patient receive more treatment and diagnostic tests despite the questionable need for both.
LYNNE and Jennifer Netter are licensed chiropractors who worked for Kirshner. Between approximately December 2006 and February 2010, Health First chiropractors performed unnecessary chiropractic treatments on Haddad’s auto-accident clients. As part of the scheme, the chiropractors established a protocol to treat patients in Haddad’s cases for six months, regardless of medical need, and would not resolve treatment of patients unless instructed to do so by Haddad. The chiropractors often falsified medical records by indicating that they had examined the patients when they had not, and by misrepresenting that patients’ pain complaints and other symptoms continued. After the six-month period, each patient would receive a permanent partial disability rating, regardless of the permanence of the medical condition. If a patient had received a permanency rating for a prior accident, the protocol was to give a higher or different disability rating for the present accident. The chiropractic practice prepared false reports, which were then provided to the victim insurance carriers.
More than 10 insurance carriers lost at least $1.7 million as a result of this fraud scheme. The loss directly attributable to LYNNE’s dealing with Haddad clients is $117,251. Judge Underhill today ordered LYNNE to pay restitution in that amount.
On March 15, 2012, LYNNE pleaded guilty to one count of conspiracy to make false statements relating to health care matters.
DeCARVALHO is a licensed chiropractor who owns and operates a chiropractic practice in Bridgeport. DeCARVALHO and Carbone shared office space in Bridgeport from approximately January 2004 to November 2005. Before Carbone’s medical license was revoked, DeCARVALHO and Carbone provided chiropractic and medical treatment on a number of common patients who were involved in auto-accident litigation. After March 2005, DeCARVALHO continued to treat certain patients knowing that payments for his services were coming from insurance settlements based, in part, on the purported treatment provided by Carbone.
In addition, in May 2007, DeCARVALHO was involved in an auto accident in which the other driver was liable. DeCARVALHO contacted Carbone to fabricate medical records to show that DeCARVALHO had suffered certain injuries and had received medical treatment for those injuries allegedly sustained from the accident. DeCARVALHO indicated that Carbone could bill carriers for treatment under DeCARVALHO’s automobile MedPay insurance. In October 2007, Carbone fabricated the medical records and submitted claims to MedPay for reimbursement totaling approximately $6,000. Relying on the false medical bills, DeCARVALHO subsequently settled the accident claim for an additional $4,500.
On June 29, 2012, DeCARVALHO pleaded guilty to one count of conspiracy to commit health care fraud.
Haddad, Carbone, Kirshner, Netter, and Dr. James Marshall, Jr. have each pleaded guilty to charges stemming from this scheme. They await sentencing.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the National Insurance Crime Bureau, the Metropolitan Property and Casualty Insurance’s Special Investigation Unit and the Travelers Insurance Company.
The case is being prosecuted by Assistant U.S. Attorneys Christopher W. Schmeisser and David J. Sheldon.
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[email protected]Three Indicted in a Stolen Identity Refund Fraud RingRead the Press Release
Robert Walker, Charnesha Alexander and Ladonna Conley were indicted for their roles in a stolen identity refund fraud conspiracy, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment.
According to the indictment, between January 2011 and December 2013, the defendants ran an identity theft ring. The defendants obtained stolen identities from various sources to be used in filing false tax returns, including the identities of employees from a Columbus, Georgia, company. In order to file the false tax returns, the defendants obtained several electronic filing numbers in the names of tax businesses. On behalf of those tax businesses, the defendants applied for bank products from various financial institutions, which in turn mailed blank check stock and prepaid debit cards to the defendants. The defendants caused tax refunds to be dispersed through checks and prepaid treasury cards, and either cashed the fraudulent checks at several businesses located in Alabama and Georgia or deposited them into their bank accounts.
An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a statutory maximum potential sentence of 10 years in prison for the conspiracy charge, a statutory maximum potential sentence of 20 years in prison for each wire fraud count and a mandatory two year sentence for each aggravated identity theft count. The defendants are also subject to fines, forfeiture and mandatory restitution if convicted.
The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation. Trial Attorneys Michael Boteler and Charles Edgar Jr. of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama are prosecuting the case.
Tampa Woman Sentenced to 7 Years in Prison for Role in Credit Card Fraud / Identity Theft RingRead the Press Release
Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Danay Crespo-Rodriguez (25, Tampa) to seven years’ incarceration for conspiracy to commit credit card fraud and aggravated identity theft. The Court also ordered her to pay $599,744.11 in restitution to the victims of her crimes and entered a forfeiture money judgment in the amount of $655,568.61, which represents the proceeds of Crespo-Rodriguez’s crimes.
Crespo-Rodriguez pleaded guilty on October 1, 2013 and was released on bond. She then absconded from supervision on November 10, 2013 and was only recaptured after she was arrested at a Tampa-area Target store for shoplifting and assault. Three of her co-conspirators have already pleaded guilty for their roles in the scheme. One was convicted on all counts following a trial. Four others have been sentenced. Another co-conspirator remains a fugitive.
According to court documents, the conspirators, led by Michel Lermos-Hernandez, ran a credit card fraud ring. Lermos, aided by his girlfriend, Danay Crespo-Rodriguez, and others, obtained credit card numbers by placing key loggers on credit card terminals that intercepted and stored swiped credit and debit card account information at the International Mall in Tampa. One key logger, in particular, was placed at the Haagen-Dazs ice cream store. Lermos and others then created counterfeit credit cards using the stolen credit and debit card account numbers. After making the credit cards, Lermos provided the counterfeit credit cards to his co-conspirators, including his sister, Norma Cabezas-Hernandez, his girlfriend, Danay-Crespo Rodgriguez, and at least two other individuals, Lazaro Rodriguez and Abel Osorio-Cuok. The conspirators used the counterfeit cards to buy electronics and gift cards at Tampa-area retailers. The conspirators then took these items to Viviana Reyes= house, where she paid them in cash for the fraudulently-obtained merchandise. When Reyes purchased the items from her conspirators, she paid them approximately 50% of the retail value of the items, before reselling them for approximately 60% of the retail value. Reyes advertised the items via text message and email.
Agents recovered more than 4,000 stolen credit and debit card numbers and estimate the loss to the affected financial institutions, to date, is in excess of $650,000.
This case was investigated by the Tampa Police Department, Florida Department of Law Enforcement and the United States Secret Service (USSS), all of whom are members of the USSS’s credit card fraud and identity theft task force. It was prosecuted by Assistant United States Attorneys Mandy Riedel and Suzanne Nebesky.
Statement of Southern District of Florida U.S. Attorney Wifredo A. Ferrer on the Conviction of Damion St. Patrick BastonRead the Press Release
“The bravery of the victims in this case is commendable. Their testimony demonstrated that despite the terrible abuse that they suffered from this defendant they are truly survivors. We can never forget that human trafficking is a heinous crime that exploits people; it simply cannot be tolerated. This case was the result of the hard work and coordination of the South Florida Human Trafficking Task Force in Miami, including our federal prosecutors, as well as that of law enforcement officers and non-governmental organizations in Australia and the Dubai Police Department. It is also the first time we have used the recently enacted extraterritorial jurisdiction provision of our anti-trafficking laws to charge someone for sex trafficking that occurred in another country. Working with our dedicated law enforcement partners here and abroad we have ensured that Baston will be unable to continue to exploit more women.”
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.
Stamford Man Sentenced to More Than 5 Years in Federal Prison for Distributing CrackRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDDIE HAMMETT, 50, of Stamford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 66 months of imprisonment, followed by five years of supervised release, for his role in a southwestern Connecticut narcotics trafficking ring.
This matter stems from a six-month investigation spearheaded by the Drug Enforcement Administration and the Stamford Police Department’s Narcotics and Organized Crime Squad. As a result of the investigation, 20 individuals were charged with various federal offenses related to the distribution of cocaine and crack cocaine in Bridgeport, Norwalk and Stamford. In addition, law enforcement officers seized more than $100,000 in cash, 500 grams of cocaine, 350 grams of crack cocaine, several vehicles and jewelry.
According to court documents and statements made in court, the investigation revealed that Marvin Wooten, also known as “Smash,” of Norwalk, was operating a significant crack cocaine distribution ring in Fairfield County. Between September 2012 and January 2013, Wooten regularly purchased multi-hundred gram quantities of cocaine from various sources of supply, including individuals who were selling cocaine out of a Bridgeport barbershop. He then converted the cocaine to crack cocaine and distributed it to other dealers and customers.
HAMMETT, a trusted friend of Wooten’s, was intercepted over a court-authorized wiretap ordering large quantities of crack from Wooten. He then distributed the crack to other dealers and to his own customers.
HAMMETT’s criminal history dates to 1987 and includes approximately 19 misdemeanor and felony convictions. He was on special parole with the State of Connecticut at the time of this offense.
On September 4, 2013, HAMMETT pleaded guilty to one count of possession with the intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
Wooten also pleaded guilty and, on May 22, 2013, was sentenced to 120 months of imprisonment.
This matter has been investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force – including the Bridgeport, Stamford, Norwalk, Milford, Westport, and Stratford Police Departments, and the Connecticut State Police – and the Stamford Police Department’s Narcotics and Organized Crime Squad. The U.S. Marshals Service also assisted in the arrests of several of the defendants.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Robert Spector.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
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[email protected]St. Clair County Women Plead Guilty to Theft of Government Social Security BenefitsRead the Press Release
Follow @SDILNewsStephen R, Wigginton, United States Attorney for the Southern District of Illinois, announced today that on July 1, 2014, Tara Star Johndrow, 30, of Belleville, Illinois, and Amber Dawn Adams, 34, of Fayetteville, Illinois, each pled guilty to one count of Theft of Government Funds. Sentencing for Johndrow is scheduled for October 9, 2014, and sentencing for Adams is scheduled for October 17, 2014. Both sentencings will take place in United States District Court in East St. Louis, Illinois.
Adams and Johndrow were indicted separately on April 23, 2014, on charges of Theft of Government Funds, which carry potential penalties of up to 10 years in prison, fines of up to $250,000, and up to 3 years of supervised release to follow any period of incarceration.
The indictment against Adams alleges that between March of 2008 and August of 2012, she falsely claimed and received more than $9,000 in Title II – Survivor Benefits that were intended for the benefit of her child, when the child did not live her and she did not support the child during the time frame alleged in the indictment.
The indictment against Johndrow alleges that between August of 2010 and August of 2012, she received $14,500 in Supplemental Social Security Payments from the Social Security Administration, when she falsely claimed to the government agency that she did not work during the time frame alleged.
“These cases are yet additional examples of the wide-spread fraud that plagues both state and federal programs that are in place to help those in our society who need that help the most. My office will continue to stand beside both federal and state agencies and law enforcement in taking every step necessary to find and prosecute those who steal from, and continue to defraud these vital programs,” said United States Attorney Wigginton.
The investigation was conducted by the Social Security Administration, Office of the Inspector General, and the cases are being prosecuted by Assistant United States Attorney Ranley R. Killian.
South Euclid Woman Indicted for Fraud, Identity TheftRead the Press Release
A 33-count indictment was filed today charging a South Euclid woman with aggravated identity theft, wire fraud and bank fraud related to a $70,000 scheme, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, Internal Revenue Service, Cincinnati Field Office.
Keauna Smith, 28, is accused of stealing the identities of 16 people between 2012 and 2104. She used these stolen identities to file 18 false tax claims of approximately $44,306. She had the money loaded onto prepaid debit cards and then withdrew the money at various ATMs, according to the indictment.
Smith also illegally obtained approximately $26,300 this year by taking checks from her employer, made them payable to herself and then forged the owner’s signature on the checks, according to the indictment.
“This defendant is accused of stealing from private citizens, the federal government and her employer,” Dettelbach said. “Her free ride of theft ends now.”“Investigating refund fraud and identity theft is a priority for Criminal Investigation,” Enstrom said. “Stealing identities and filing false returns is a serious crime that hurts innocent taxpayers. IRS Criminal Investigation is serious about investigating these crimes and holding accountable those who would defraud the government.”
Smith faces 16 counts of wire fraud, 16 counts of aggravated identity theft and one count of bank fraud.
This case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by the Internal Revenue Service – Criminal Investigations.If convicted, the defendants’ sentences 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.