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20 August 2014
Colorado Springs Man and Member of "North American Man-Boy Love Association" Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – U.S. District Court Judge Christine M. Arguello recently sentenced Clifton Brett Bennett, age 56, of Colorado Springs, Colorado, to serve 57 months in federal prison, followed by 10 years of supervised release, the U.S. Attorney’s Office, the U.S. Postal Inspection Service, and the Colorado Springs Police Department – Internet Crimes Against Children Task Force (ICAC) announced. Once released the defendant will also have to register as a sex offender. Further, Bennett, who appeared at the hearing in custody, was remanded after the sentence was pronounced.
Bennett was indicted by a federal grand jury in Denver on September 25, 2013. He pled guilty before Judge Arguello on May 1, 2014. He was sentenced on August 18, 2014.
According to court records, between November 1, 2008 and April 15, 2011 Bennett knowingly received material that contained child pornography. Further, on January 23, 2013, Bennett knowingly possessed child pornography. According to a state affidavit of probable cause, a United States Postal Inspector contacted an ICAC detective regarding a child pornography investigation. Postal Inspectors had identified an individual who lived in Colorado Springs who made over $4,000 in purchases for over 100 child pornography videos over a number of years. Follow up investigation determined the individual was Clifton Bennett.
A search warrant was executed at Bennett’s residence. During the execution of the warrant a detective conducted a forensic preview of the computer, and found images of prepubescent boys who were nude and posed in sexually explicit positions with their genitals exposed. They also found DVDs containing child pornography – many of which were delivered via U.S. Mail from New York. He also allegedly bought and downloaded child pornography as well. Investigators also determined that Bennett was a member of the “North American Man-Boy Love Association.” Following the execution of the search warrant Bennett was arrested and held in state custody. Once the federal indictment was returned the state dismissed their case in its entirety.
This case was investigated by the United States Postal Inspection Service and the Colorado Springs Police Department -- Internet Crimes Against Children Task Force (ICAC).
Bennett was prosecuted by Assistant U.S. Attorney Valeria Spencer.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Colorado Man Pleads Guilty to Illegally Trafficking in PaddlefishRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Colorado man has pleaded guilty in federal court to illegally trafficking in paddlefish caviar after being caught in an undercover operation in the Warsaw, Mo., area.
During March and April 2011, the U.S. Fish and Wildlife Service and the Missouri Department of Conservation conducted a covert investigation, “Operation Roadhouse,” centered on an area known as the Roadhouse in Warsaw. As part of the covert operation, state and federal officers operated a paddlefish snagging business. Covert officers also sold paddlefish to people who were interested in buying them.
Felix Baravik, 49, of Aurora, Colorado, pleaded guilty before U.S. Magistrate Judge Matt J. Whitworth o Tuesday, Aug. 19, 2014, to illegally trafficking in paddlefish, in violation of the Lacey Act.
By pleading guilty, Baravik admitted that he traveled from Colorado to Missouri on April 16, 2012. On that day, he and his co-conspirators met with covert agents posing as fishermen who had a boat, which they were going to use to fish for paddlefish. During that conversation, conspirators exchanged telephone numbers with the covert agents and Baravik told the covert agents to call if they caught a paddlefish.
The next day, conspirators arranged to purchase female paddlefish from covert agents. Baravik participated in the conversations regarding the paddlefish.
On April 18, 2012, Baravik and a co-conspirator went fishing for paddlefish with the covert agents. During the fishing trip, the conspirators exceeded the Missouri daily take limit. The conspirators kept the paddlefish that they took and processed them by removing the eggs from the carcass, and further processed the eggs to make caviar.
On April 20, 2012, Baravik and the other conspirators transported the paddlefish and paddlefish eggs that they acquired from Missouri to Colorado.
Under the terms of the plea agreement, the government and Baravik agree to jointly recommend to the court a sentence of three years of probation and a $5,000 fine. The first six months of probation will be served as home detention, and Baravik shall not fish, or accompany anyone fishing, anywhere in the world during the term of his probation. Baravik must also perform 500 hours of community service. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
USA v. Nahapetyan
In a separate case arising from the same investigation, Bogdan Nahapetyan, 35, of Lake Ozark, Mo., pleaded guilty on Nov. 12, 2013, to the same offense.
Nahapetyan had numerous interactions and conversations with undercover investigators concerning the purchase of female paddlefish and paddlefish eggs. Although the investigators informed Nahapetyan numerous times that the purchase of paddlefish was illegal in the state of Missouri, Nahapetyan arranged to purchase numerous female paddlefish and multiple pounds of paddlefish eggs. For example, on April 24, 2012, Nahapetyan negotiated with the undercover investigators to purchase 80 pounds of paddlefish eggs and five female paddlefish for $4,625. While loading the purchased caviar and female paddlefish into their van, Nahapetyan placed an additional order with the undercover investigators for more fish and caviar.
Under federal statutes, Nahapetyan is subject to a sentence of up to one year in federal prison without parole, plus a fine up to $100,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Paddlefish Trafficking
The American paddlefish (Polydon spathula), also called the Mississippi paddlefish or the “spoonbill,” is a freshwater fish that is primarily found in the Mississippi River drainage system. Paddlefish eggs are marketed as caviar. Paddlefish were once common in waters throughout the Midwest. However, the global decline in other caviar sources, such as sturgeon, has led to an increased demand for paddlefish caviar. This increased demand has led to over-fishing of paddlefish, and consequent decline of the paddlefish population.
Missouri law prohibits the transportation of paddlefish eggs which have been removed or extracted from a paddlefish carcass. Missouri law also prohibits the sale or purchase, or offer of sale or purchase, of paddlefish eggs. There are also several restrictions on the purchase and possession of whole paddlefish in Missouri.
The Lacey Act is a federal statute which makes it unlawful for any person to import, export, transport, sell, receive, acquire or purchase fish that were taken, possessed, transported or sold in violation of any law or regulation of any state, or to attempt to do so. Such conduct constitutes a felony crime if the defendant knowingly engaged in conduct involving the purchase or sale, offer to purchase or sell, or intent to purchase or sell, fish with a market value in excess of $350, knowing that the fish were taken, possessed, transported or sold in violation of, or in a manner unlawful under, a law or regulation of any State.
This case is being prosecuted by Trial Attorney James B. Nelson of the Department of Justice’s Environmental Crimes Section and Supervisory Assistant U.S. Attorney Lawrence E. Miller of the U.S. Attorney’s Office for the Western District of Missouri. It was investigated by the U.S. Fish and Wildlife Service and the Missouri Department of Conservation, with assistance by the Oklahoma Department of Wildlife Conservation.
Charleston Man Sentenced to More Than Six Years as A Felon in Possession of A FirearmRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Mark A. Johnson, Jr., 24, of Charleston, West Virginia, was sentenced today in federal court to six years and six months’ imprisonment for being a convicted felon in possession of a firearm. In November of 2013, while on federal supervised release for a prior conviction for being a felon in possession of a firearm, Johnson got into an argument with his girlfriend outside of the Town Center Mall. A construction worker attempted to intervene, and Johnson pulled a handgun and threatened to kill him. Johnson was later arrested and has been in federal custody since December of 2013. In January of 2014, Johnson was sentenced to an additional six months of imprisonment for violating the terms of his supervised release. Today’s sentence imposes an additional six years and six months of imprisonment to be served consecutively to the six month sentence for the supervised release violation. In deciding on the appropriate sentence, the sentencing court considered that Johnson had tried to convince two witnesses to lie for him and to say he did not have a real gun when he threatened the construction worker last November.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime. This case was investigated by the Charleston Police Department and the United States Department of Alcohol, Tobacco, Firearms and Explosives.
Cedar Rapids Man Sentenced for Possession of A Firearm by A FelonRead the Press Release
A man who unlawfully possessed a firearm was sentenced today to almost three years in federal prison.
Ramius Hardiman, age 21, from Cedar Rapids, Iowa, received the prison term after a May 23, 2014, guilty plea to one count of possession of a firearm by a felon.
At the plea hearing, Hardiman admitted that on May 8, 2013, he possessed a Taurus 9mm pistol. Hardiman is prohibited from possessing firearms due to his felony conviction for Involuntary Manslaughter in October 2011.
Hardiman was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Hardiman was sentenced to 34 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hardiman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was prosecuted as part of Project Safe Neighborhoods, a cooperative local, state and federal program aimed at the enhanced prosecution of gun crimes. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-37.
Canton Man Faces Child Pornography ChargesRead the Press Release
Shane C. Albert, 23, of Canton, Ohio, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
The indictment charges that from on or about May 1, 2012, through on or about March 7, 2013, Albert knowingly received and distributed in interstate and foreign commerce, by computer, numerous computer files, which files contained visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that on May 1, 2013, Albert possessed a computer that contained child pornography.
If convicted, the sentence sentence in this case will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan. The case was investigated by the Canton Office of the Federal Bureau of Investigation and the Canton Police Department.
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.
Canadian Drug Kingpin with Ties to the Rizutto and Bonanno Crime Families, the Hells Angels, and the Mexican Sinaloa Cartel Sentenced to 27 Years for Leading A Billion Dollar Narcotics Trafficking EnterpriseRead the Press Release
Jimmy Cournoyer, the leader of a massive international drug trafficking enterprise with ties to La Cosa Nostra, the Hells Angels, and the notorious Sinaloa Cartel in Mexico, was sentenced earlier today to 27 years in prison by the Hon. Raymond J. Dearie. Cournoyer previously pled guilty to being the leader of a continuing criminal enterprise, conspiracies to manufacture, import, and distribute marijuana, conspiracies to export and distribute cocaine, substantive cocaine distribution, and a conspiracy to launder the proceeds of narcotics trafficking. As part of his sentence, Cournoyer agreed to a $1 billion forfeiture money judgment and will forfeit $10,871,120 in narcotics proceeds that federal agents seized from multiple locations in New York, California, Pennsylvania, and Kansas during the multi-year investigation.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York and James J. Hunt, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New York Division.
“With the assistance of our law enforcement partners across the United States and in Canada, the United States Attorney’s Office for the Eastern District of New York was able to bring to justice a prolific drug kingpin with ties to some of the most powerful organized crime groups in the world,” stated United States Attorney Lynch. “Jimmy Cournoyer used Native American Reservations to violate the security of our national borders and smuggled more than $1 billion worth of deadly narcotics and firearms between the United States, Canada, and Mexico. Today’s sentence sends a powerful message to those engaged in international organized crime: law enforcement is committed to tracking down and dismantling dangerous criminal organizations wherever they are located, and the penalty for engaging in such conduct is severe.”
DEA Acting Special Agent-in-Charge James Hunt praised the men and women of the U.S. Attorney’s Office, Eastern District of New York for their diligent work in this investigation and stated, "This sentence is a message to drug distributors who profit millions while pushing drugs and violence through our country and abroad. Today, law enforcement's efforts have led to twenty seven years in prison for Jimmy Cournoyer and mark the end of his drug empire."
According to the indictment and other court filings submitted by the government, Cournoyer was the principal leader of a Montreal-based drug distribution organization affiliated with the Rizutto and Bonanno crime families, the Hells Angels, and the Sinaloa Cartel. A superseding indictment charged Cournoyer with trafficking more than $1 billion worth of marijuana, cocaine, and ecstasy into the United States between 1998 and 2012. Cournoyer’s organization transported tens of thousands of pounds of marijuana from outdoor growers in British Colombia to Montreal, Canada, and controlled numerous warehouses in and around Montreal for the manufacture of ecstasy and hydroponic marijuana. The drugs were smuggled into the United States using transportation networks run by the Hells Angels and Native American co-conspirators from the Akwesasne Mohawk Reservation along the U.S./Canadian border. Once the drugs were sold in the United States, much of it by distributors tied to the Bonanno crime family in New York, the organization used millions of dollars in drug proceeds to purchase cocaine from the powerful Sinaloa Cartel in Mexico for exportation to and distribution in Canada by members and associates of the Rizzuto crime family. Cournoyer was also charged with witness tampering in connection with his attempts to dissuade co-conspirators from cooperating with law enforcement by, among other things, establishing a $2 million “hit fund” set aside to murder or otherwise retaliate against any individuals who cooperated with the government.
During the course of the government’s investigation, law enforcement agents in the United States and Canada seized hundreds of pounds of marijuana, 83 kilograms of cocaine, 60,000 MDMA pills, multiple firearms and ammunition, more than 800 marijuana plants, and nearly $11,000,000 in narcotics proceeds from Cournoyer’s criminal enterprise. In total, more than 100 defendants have pled guilty to narcotics trafficking charges since the investigation commenced in 2007.
United States Attorney Lynch extended her grateful appreciation to the Drug Enforcement Administration, the Nassau County Police Department, the Laval Police Service, Laval, Quebec, and the Department of Justice Office of International Affairs for their extraordinary work on this nearly seven-year investigation. Ms. Lynch further thanked the New York City Police Department; New York State Police; Surete Du Quebec; Montreal Police Department; Peel Regional Police Department, Ontario; Delta Police Department, British Colombia; Royal Canadian Mounted Police - Swift Current Division; Ontario Provincial Police; Akwesasne Mohawk Police Service; Akwesasne Tribal Police; Beverly Hills Police Department; Santa Ana Police Department; Anaheim Police Department; Costa Mesa Police Department; U.S. Border Patrol, and Philadelphia Police Department for their important contributions to the successful outcome.
The government’s case is being prosecuted by Assistant United States Attorneys Steven L. Tiscione, Amir H. Toossi and Tanisha Payne.
The Defendant:
JIMMY COURNOYER
Age: 34
CEO of Local Nurse Care Provider Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – SUSAN WINEBARGER was sentenced to thirty-eight (38) months imprisonment for embezzling more than $600,000 from company accounts and falsifying documents to conceal the embezzlement. Winebarger was also ordered to pay restitution of $699,897 to the company.
According to court documents, Winebarger was Chief Financial Officer, then Chief Executive Officer of VNA-TIP of Bridgeton, Missouri. VNA-TIP provides visiting nurse care, hospice care and related patient care service in Missouri and Illinois. In this capacity, she ran the day-to-day business and financial operations of VNA-TIP, including reconciling bank statements and having full access to bank checks for the company’s operating and payroll accounts. Winebarger also directly coordinated payments to the outside Administrator for VNA-TIP’s employee 401(k) plan. Between January 2008 and December 2013, Winebarger embezzled approximately $600,000 from VNA-TIP accounts. Without company authority, Winebarger issued more than two hundred (200) checks to herself from both the operating account and its payroll account and deposited those checks into her personal bank accounts. She also used the company debit card to purchase personal items. In order to conceal her scheme, she made sure she received all the bank account statements, which she altered for submission to VNA-TIP auditors. She also falsified internal financial reports, including monthly profit and loss statements submitted to the shareholders and board members. Winebarger failed to remit moneys withheld from VNA-TIP employees’ paychecks for their individual 401 (k) retirement accounts to the plan administrator so that the cash reserves would be falsely inflated in order that VNA-TIP shareholders, board members and auditors would not be aware of the true financial status of the company and potentially discover her theft and embezzlement. She also failed to remit state and federal withholding taxes, social security and Medicare funds.
Winebarger, Highland, IL, pled guilty to two felony counts of wire fraud in May. She appeared today for sentencing before United States District Judge John A. Ross.This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Hal Goldsmith handled the case for the U.S. Attorney's Office.
Berkshire Hathaway to Pay $896,000 Civil Penalty for Violating Antitrust Premerger Notification RequirementsRead the Press Release
Berkshire Hathaway Inc. has agreed to pay an $896,000 civil penalty to settle charges that it violated premerger reporting and waiting requirements when it acquired voting securities of USG Corp., the Department of Justice announced today.
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission, filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against Berkshire Hathaway for violating the notification requirements of the Hart-Scott-Rodino (HSR) Act of 1976. At the same time, the department filed a proposed settlement that, if approved by the court, will settle the charges.
Berkshire Hathaway is a Delaware corporation with its headquarters in Omaha, Nebraska. As a result of its acquisition of USG voting securities in December 2013, Berkshire Hathaway held approximately 28 percent of USG voting securities, valued at more than $950 million.
USG is a Delaware corporation with its headquarters in Chicago, Illinois.The HSR Act of 1976, an amendment to the Clayton Act, imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review.
Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the Department of Justice. For a party in violation of the HSR Act the maximum civil penalty is $16,000 a day.
Albuquerque Man Sentenced to Almost Twenty-Seven Years for Armed Bank Robbery Spree in 2013Read the Press Release
ALBUQUERQUE – James Charles Mollohan, 36, of Albuquerque, N.M., was sentenced this afternoon to 332 months (26.83 years) in prison followed by five years of supervised release for his conviction on four armed bank robbery charges and using a firearm in relation to a crime of violence. The sentence was announced by U.S. Attorney Damon P. Martinez, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and Chief Gorden E. Eden, Jr., of the Albuquerque Police Department.
U.S. Attorney Damon P. Martinez said that Mollohan was prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this 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 communities in New Mexico for as long as possible.
“The FBI has been taking dangerous bank robbers off the streets since the days of John Dillinger and Pretty Boy Floyd. Anybody who thinks he or she can become America's newest Public Enemy #1 better brush up on some history and find another line of work fast,” said FBI Special Agent in Charge Carol K.O. Lee. “The FBI is proud of its partnership with the Albuquerque Police Department, the New Mexico Corrections Department Probation and Parole and the U.S. Attorney's Office. Together, we are making a difference in our communities.”
“The Albuquerque Police Department is indebted to our federal law enforcement partners who recognized the extreme danger James Charles Mollohan was to our community,” said APD Chief Gorden Eden. “As a result of this federal anti-violence initiative, Mollohan will no longer threaten our community.”
Mollohan was arrested on Feb. 1, 2013, on a criminal complaint charging him with the armed robbery of the New Mexico Educators Federal Credit Union branch located at 3205 Coors Blvd. NW in Albuquerque. On that day, Mollohan approached a bank teller, pointed a handgun at the teller, and demanding money. As the teller opened the cash drawer in response to Mollohan’s demand, the teller surreptitiously activated an alarm before handing cash to Mollohan. Mollohan was arrested in the vicinity of the bank shortly thereafter by an FBI agent and an APD officer who were in the area and responded to a radio transmission alerting them of the bank robbery. Mollohan was in possession of a loaded semi-automatic handgun and a significant amount of cash when he was arrested.
On March 7, 2014, Mollohan pled guilty to a five-count felony information charging him with four counts of armed bank robbery and possession of a firearm in relation to a crime of violence. In entering his guilty plea, Mollohan admitted robbing at gunpoint the following Albuquerque-area banks: the Bank of Albuquerque branch located at 3301 Coors Blvd. NW on Jan. 12, 2013; the New Mexico Bank and Trust branch located at 6201 Riverside Plaza Lane on Jan. 29, 2013; and New Mexico Educators Federal Credit Union located at 3205 Coors Blvd. NW on Jan. 29, 2013 and again on Feb. 1, 2013.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department with assistance from the Probation and Parole Division of the New Mexico Corrections Department, and was prosecuted by Assistant U.S. Attorney Charles L. Barth.
19 August 2014
U.S. Postal Inspection Service Delivers $14 Million to Victims of Mass Marketing ScamRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that today the U.S. Postal Inspection Service is delivering over 3400 checks to victims of marketing schemes by MoneyGram agents and others.
The distribution payments were made from a $100 million fund paid by MoneyGram as part of a settlement with the U.S. Department of Justice and the U.S. Attorney’s Office for the Middle District of Pennsylvania in 2012. The settlement was approved by Chief U.S. District Court Judge Christopher C. Conner.
The U.S. Postal Inspection Service’s announcement, with additional information about the fund, can be found at postalinspectors.uspis.gov.
U.S. Attorney Finley Addresses VITA Awards Luncheon AttendeesRead the Press Release
LAFAYETTE, La.–United States Attorney Stephanie A. Finley was the keynote speaker at the Volunteer Instructors Teaching Adults (VITA) awards luncheon held today at the Petroleum Club.
“I am honored that VITA invited me to speak at the luncheon celebrating the achievements of their students and tutors,” Finley said. “The work that VITA does to promote literacy in Acadiana by teaching reading and writing skills to adults is remarkable. The investment that tutors make in the lives of their students gives them a solid foundation to excel in every aspect of their lives. If you help people develop a passion for learning, they will never cease to grow. VITA volunteers, not only improve the education of those participating, but the quality of the communities where we live.”
Finley told the tutors present that they play a vital role in educating the adult population. The situation for those who cannot read and write is difficult. She talked about the difficulty for those who lack these skills and how challenging it is for them to improve their lives and the lives of their loved ones. Finley has seen firsthand the difficulties of those who cannot read or write. Many of them navigate their way through the justice system, and added that 63 percent of inmates cannot read. Finley thanked the tutors present for volunteering and urged them to press on to help more students because their work makes a difference. She also encouraged the students present to continue their education in order to achieve their fullest potential and fulfill their hopes and dreams.
The organization recognized two tutors and a student who have made remarkable achievements in the past year with awards. They honored VITA tutors, Wendee Herold with the Martin Award and Phyllis Ledet with the 2014 Donna Groth Delhomme Memorial Award. McKinley Milligan, a student with VITA, was presented with the 2014 Don Littlefield Memorial Award. Milligan was injured years ago, but through the help of family, friends, therapy and the VITA program, he has obtained his high school equivalency degree.
The VITA organization matches tutors to students for two-hour sessions twice a week to help those who need help with English reading skills. The organization tutors adult students who are no longer in school and English as a Second Language (ESL) students. VITA is always seeking tutors and students. To find out more, call 337-234-4600 or visit http://vitalaf.org/
Volunteer Instructors Teaching Adults Inc. was incorporated in May 1982 as a non-profit, community-based adult literacy program and was organized through the collaborative efforts of members of the Lafayette Parish School Board, RSVP, Altrusa Club, Lafayette Public Library, and community leaders in the fields of business and education. VITA is a member of ProLiteracy America, the nation’s largest volunteer literacy organization. Programs and services are financed by funds from the United Way, Lafayette Parish School System, Louisiana Department of Education, foundation grants, private donations and fundraising events.
Finley is the first female U.S. Attorney to serve in Louisiana. She was selected by President Barack Obama in January of 2010, after being recommended by U.S. Senator Mary Landrieu, and confirmed by the U.S. Senate in June of 2010. United States Attorney Finley was sworn into office on June 2, 2010 to serve the Western District of Louisiana as the chief law enforcement officer for 42 of the state’s 64 parishes. In addition to her duties as the U.S. Attorney, Finley is a Lieutenant Colonel in the U.S. Air Force, and currently serves as Vice Chair of Attorney General Eric Holder’s Advisory Committee’s Office of Management and Budget Committee.
Title Agents Indicted for Embezzling Clients' FundsRead the Press Release
Over one million dollars allegedly swindled by two title agents
INDIANAPOLIS – Josh J. Minkler, the Acting United States Attorney, announced today that Adam Mears, 41 of Carmel and Patrick Hayden, 37 of Greensburg were indicted in separate investigations for embezzling money from their clients. Both face five counts of wire fraud.
“When individuals violate the people’s financial trust, it shakes the foundation of our communities,” said Acting United States Attorney Josh J. Minkler. “Our office works closely with our state and local partners to help maintain the public’s confidence in local leaders.”
According to the indictments, both Mears and Hayden were title agents and controlling members of their respective companies. Mears was a co-owner of First Title, operating in Indianapolis. Hayden was the co-owner of Mainstreet Title operating out of Greensburg.
In these positions, both were required by law to maintain an escrow account which was to be exclusively used to hold client funds and pay expenses associated with real estate closings. Despite these responsibilities, Mears is alleged to have embezzled $648,219.43 from First Title by utilizing the user name and password of another employee to create false user accounts. He then is alleged to have used the money to pay business and personal expenses.
Hayden is alleged to have embezzled $448,172.01 from his clients by diverting funds normally used to pay off existing mortgages, appraisals, title work or other liens on a property. Current closings were being funded by deposits from future closings. The alleged stolen funds were used to finance another business and support a drug habit.
The Indiana Department of Insurance’s (IDOI) routine examination of these agencies revealed improprieties in the appropriation of funds which were communicated to the Indiana State Police and the U.S. Secret Service. IDOI Commissioner Stephen W. Robertson warned, “Insurance fraud is a serious crime which will not be tolerated. IDOI will investigate all claims of fraud and as in this case, partner with local and federal law enforcement to ensure that these types of crimes against Hoosier consumers are prosecuted to the fullest extent of the law.”
According to Assistant United States Attorney Brad Shepard who is prosecuting the case for the government, both men face up to 20 years in federal prison for each count if convicted.
An indictment is only a charge 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.
Mears and Hayden had their initial appearances today before a magistrate judge. Mears was released. Hayden is being held for a detention hearing tomorrow (8/20).
Three South Florida Residents Charged in Conspiracy to Distribute Illegal Drugs, SteroidsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, David W. Bourne, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach Sheriff’s Office (PBSO), announce that Frank Fiore, 59, of Parkland, Gary Lee Jones, 55, of Boca Raton, and Anthony Carbone, 32, of Deerfield Beach, have been charged with conspiring to possess Alprazolam, a controlled substance, with the intent to distribute it, conspiring to traffic in counterfeit Xanax, distributing Alprazolam, and trafficking in counterfeit Xanax. In addition, Fiore and Carbone have been charged with conspiring to possess anabolic steroids and 500 grams or more of cocaine with the intent to distribute them, distributing anabolic steroids, and attempting to possess 500 grams or more of cocaine with the intent to distribute it. Jones has also been charged with possession of a firearm after conviction for a felony.
According to the allegations in the complaints and indictment, the defendants initially sold an undercover officer counterfeit Xanax. The tablets contained Alprazolam, which is the active ingredient in Xanax and is a Schedule IV controlled substance. In addition, Jones, who has a prior felony conviction, sold the undercover officer a ROMARM Wassenaar Arrangement Semiautomatic Rifles, a Romanian variant of the AK-47 rifle, for $1,000 cash. Fiore and Carbone then sold a second undercover officer various anabolic steroids. Carbone, with Fiore’s assistance, also attempted to buy a kilogram of cocaine from a second undercover officer. During the course of these drug dealings, Fiore also asked the undercover officer to kill an associate of Fiore’s and to “beat up” another associate.
Evidence at trial established that Burke and Garland created fictitious companies, including Next Level Development, and used an abandoned coin laundry in Delray Beach, to create an empire of fraudulently obtained investment properties. The abandoned coin laundry had a mailbox that served as the official address for the defendants, various fake companies, and other conspirators and fictitious individuals. Trial evidence established that Burke and Garland used fake documents, including false wage and tax documents, and false claims of employment and income, to obtain bank loans for investment properties in low-income neighborhoods. Garland was held out as the “President” of Next Level, and would sell properties to Burke, using his alias, “David Middleton.” The defendants would then enroll the properties in the U.S. Department of Housing and Urban Development (HUD), Section 8 voucher program, and obtain proceeds from HUD and from low-income tenants. The defendants then used false claims of status for Burke and also for the fake name, “David Middleton,” as total and permanent disabled veterans to avoid property taxes on various fraudulently obtained properties. Burke and his fake alias were neither veterans nor disabled. Trial evidence established that the loans and rental proceeds totaled millions of dollars.
If convicted, Fiore faces maximum possible statutory sentences of 40 years in prison for conspiring to possess controlled substances with the intent to distribute them; 40 years in prison for attempting to possess cocaine with the intent to distribute it; 20 years in prison for conspiring to traffic in counterfeit Xanax; 20 years in prison for each of the four counts of trafficking in counterfeit Xanax; 10 years in prison for each of the two counts of distributing anabolic steroids; and five years in prison for each of the four counts of distributing Alprazolam.
If convicted, Jones faces maximum possible statutory sentences of 20 years in prison for conspiring to traffic in counterfeit Xanax; 20 years in prison for each of the two counts of trafficking in counterfeit Xanax; 10 years in prison for possession of a firearm after conviction for a felony; five years in prison for conspiring to possess Alprazolam with the intent to distribute it; and five years in prison for each of the three counts of distributing Alprazolam.
If convicted, Carbone faces maximum possible statutory sentences of 40 years in prison for conspiring to possess controlled substances with the intent to distribute them; 40 years in prison for attempting to possess cocaine with the intent to distribute it; 20 years in prison for conspiring to traffic in counterfeit Xanax; 20 years in prison for each of the four counts of trafficking in counterfeit Xanax; 10 years in prison for each of the three counts of distributing anabolic steroids; and five years in prison for each of the two counts of distributing Alprazolam.
Mr. Ferrer commended the investigative efforts of FDA–Office of Criminal Investigations and PBSO. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
An indictment and information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Teacher Certification Scam Investigation Comes to A Close; Nets Thirteenth Guilty Plea and Fortieth Agreement to Pay Restitution and Cease TeachingRead the Press Release
Memphis, TN – United States Attorney for the Western District of Tennessee, Edward L. Stanton III, announced that Janett Dixon, 48, of Northport, Alabama; Corey Holmes, 37, of Metcalfe, Mississippi; Nia Kimble-Harris, 39, of Memphis, Tennessee; and Charles Ray Lee, 32, of Magee, Mississippi; have entered diversion agreements in the two-decade teacher certification testing scam led by ringleader Clarence Mumford, Sr., 61, of Memphis, who pled guilty in the scheme last year.
U.S. Attorney Stanton also announced the June guilty plea and sentencing of former Hillcrest High School and Byhalia High School boys basketball coach James O. Sales, 40, of Memphis.
Sales’s guilty plea is the thirteenth in a case opened by the United States Attorney’s Office in August 2011, and the four diversion agreements – which include agreements to cease teaching and to pay restitution where teaching jobs were obtained – bring the total number of diversion agreements to 40.
“Clarence Mumford and those he used in this tragic scam cheated the honest and dedicated tea chers in our communities, and, tragically, the parents and children who deserve qualified teachers in their classrooms. Crimes such as these undermine our educational institutions and strike at the fabric of our society,” stated U.S. Attorney Stanton. “We are proud to have partnered with the U.S. Secret Service, the Tennessee Bureau of Investigation, and the Shelby County District Attorney General’s Office to expose this scheme and send the message that if you are defrauding our communities we will work together and we will bring you to justice.”The Teacher Certification Testing Scam
Mumford, Sr., the ringleader who pled guilty last year, was a teacher, guidance counselor, and assistant principal at schools in Arkansas, Mississippi and Tennessee.
The scam began in the mid-1980s, when Mumford began altering score reports for teachers with failing certification test scores. Teachers used the altered score reports to obtain licenses and jobs. Mumford changed the scam in the 1990s, when Educational Testing Service, which manages the certification tests, began sending scores directly to state boards of education. Mumford hired John Bowen, who was a substitute teacher at Humes Junior High School when Mumford was the assistant principal, to take examinations on behalf of failing teachers. At the time, Mumford charged approximately $600 per exam, paying $200 to Bowen.
Over time, demand for Mumford’s services grew as his name was passed by word of mouth among teachers and coaches in the Memphis City and Shelby County Schools and into Mississippi and Arkansas. Mumford’s market focused on teachers who were teaching on temporary licenses but were unable to pass the certification tests. These teachers, who had obtained college degrees but could not pass the exams, were willing to pay substantial sums to avoid losing their teaching – and in many cases, coaching – jobs.
Mumford identified targets of his services in various ways, such as searching the Tennessee Department of Education website for teachers whose temporary licenses were expiring, asking people who used his services whether they knew anyone else who needed passing scores, and attending meetings where teachers discussed their licensing issues. Once he identified potential customers, he contacted them, sometimes initially using the pretense that he would tutor them before soliciting them to pay stand-ins to take their exams. Some of the customers knew exactly what they were getting into from the outset, while others had simply heard generally that Mumford could help them get a passing score.
By 2010, Mumford was charging teachers approximately $2,500 to $3,000 and paying the stand-ins up to $600 to $800 per exam. In addition to Bowen, he had hired Steve Holmes, Felippia Kellogg, Nia Kimble-Harris, Devin Rutherford, Carlos Shaw, Jeryl Shaw, Shantell Shaw and his son, Clarence Mumford, Jr., to take examinations.Proctors Catch Stand-ins Taking Exams
Unbeknownst to Mumford at the time, the scheme began to unravel on June 13, 2009 when proctors for examinations given at Arkansas State University-Jonesboro caught several of Mumford’s stand-ins taking tests.
During the first session of tests on that date, Shantell Shaw, who was wearing a pink New York Yankees baseball cap, tested in the name of Marshay Thornton, then a Memphis City Schools teacher. The proctor for that examination went to visit another proctor during the second session of tests. She noticed the name Marshay Thornton on the second proctor’s examinee list but did not see Shantell Shaw in her pink ball cap. The first proctor asked the second proctor where Marshay Thornton was, and the second proctor identified a man who had identified himself as Marshay Thornton. This man turned out to be John Bowen.
Upon further investigation, the proctors determined that John Bowen had taken a test that morning in the name of Ellix Brooks (who also goes by the name Ellix Wilson). They found that Carlos Shaw was taking a test in the second session in the name of Ellix Brooks. They also found that Carlos Shaw had taken a test in the first session in the name of James Sales. Investigators later determined that Nia Kimble-Harris was also taking an examination at Arkansas State that day.
Shantell Shaw, Carlos Shaw and Nia Kimble-Harris managed to get away before university police officers arrived. The officers gave Bowen a persona non grata notice and criminal trespass warning, and Bowen was forced to call Mumford to come to Jonesboro to pick him up.
The incident was reported to Educational Testing Services, which looked into the tests and cancelled the relevant scores. Eventually, in 2010, the Tennessee Bureau of Investigation was notified and asked to investigate.
Meanwhile, Mumford had suspended the scheme for several months after the Arkansas State incident. By early 2010, though, he resumed the scheme, apparently believing the incident had escaped the attention of law enforcement.Law Enforcement Investigation
After receiving the request to investigate, the TBI interviewed participants in the Jonesboro testing and, in the fall of 2010, obtained a search warrant for Mumford’s home. At the home, investigators found a variety of sources of information that identified additional participants in the scheme, including identification documents used to create fake IDs and correspondence from teachers involved in the scheme. They also found several thousand dollars in cash.
After investigators learned that participants in several states were involved, the case was presented to the United States Attorney’s Office, which began a federal investigation. The TBI remained the lead investigative agency, and the United States Secret Service joined the investigation.
State and federal investigators subpoenaed bank and phone records and conducted hundreds of interviews to attempt to unravel the entire scheme, traveling across western Tennessee and down through Mississippi to the delta. They found that Mumford’s name had been passed along by word of mouth to dozens of teachers in Tennessee, Mississippi and Alabama.Mumford’s Manipulation of Participants
Investigators learned that Mumford had manipulated people to bring them into the scheme. For example, Shantell Shaw informed investigators that Mumford was her mentor when she was a new teacher. Mumford told Ms. Shaw that he knew a woman who had failed to pass an examination numerous times and was in danger of losing her job. He asked Ms. Shaw to take the examination for the woman, and Ms. Shaw refused several times. Finally, after he persuaded Ms. Shaw to meet the woman, Ms. Shaw relented and took the exam. He used a similar approach with Felippia Turner-Kellogg, telling her of teachers who would lose their jobs if she did not help out.
Mumford also persuaded some teachers to use his services by initially luring them with an agreement to tutor them. After meeting with them, he would tell them that tutoring would not work out but that he could get the exams passed for a fee. Frances Jones is one example. After meeting with Ms. Jones for a short while for purported tutoring services, Mumford told her that she should just pay him to have the test taken for her. He told her that tutoring would not work out. She needed the score to keep her job. It did not work out for Ms. Jones. She paid Mumford $3,000, but the stand-in left the testing facility because the stand-in feared the proctor was suspicious of the fake ID Mumford had provided. Mumford then demanded an additional $3,000 for a second exam even though his stand-in had not taken the first. Desperate, Ms. Jones paid the additional $3,000. But this time the scores were cancelled after ETS detected a large score increase compared to Ms. Jones’s previous tests and identified handwriting discrepancies. Mumford did not refund any of Ms. Jones’s money.Dozens of Teachers and Examinations Identified – Additional Evidence Destroyed
Investigators identified approximately 100 examinations taken on behalf of at least 50 individuals. However, although many of the examinations and participants were identified based on materials found during the search warrant at Mumford’s house in the fall of 2010, they also learned that after the Jonesboro incident in 2009, Mumford had taken boxes of testing documentation and evidence to a in Mississippi farm and burned the items. Had those items not been destroyed, investigators may well have been able to identify many more participants and examinations.
Of those involved in the scheme, Mumford enabled many teachers who had failed examinations numerous times, and enabled them to teach in already struggling districts. Carlo McClelland failed the Reading and Writing examinations eleven times before Mumford had the tests passed for him. Marshay Thornton had failed biology eight times. Jacqueline Hill, Willie Knox and Taponsa Wells had each failed examinations seven times before Mumford had the tests passed for them.
In 2012, the Memphis City Schools – the central location of the scheme – had the highest percentage of all school districts in Tennessee of students below basic proficiency levels in Reading and Science. Nine Mississippi districts that had hired teachers enabled by Mumford were characterized as “Low Performing.” At least 22 school districts in Tennessee, Mississippi, and Alabama – and thousands of students in those districts – were victimized by the scheme.Coaching Connection
Notably, as Mumford’s name passed by word of mouth through the coaching community, a number of former athletes and coaches became involved in the scheme. Basketball coaches who pled guilty or were diverted in the scheme included Corey Alexander, Samuel Campbell, Yanesha Coleman, Jerome Martin, Rondavius Milam, Shelvie Rose, James Sales, Shunnica Scott, Roosevelt Taylor and Jermaine Johnson, who coached Melrose High School to a state championship in 2010. Football coaches included Ellis Brooks, Keiver Campbell, Lavante Epson, Willie Knox, Jadice Moore, Corey Holmes, Carlo McClelland, Cedrick Wilson and Devin Rutherford, who coached White Station High School to a state championship in 2009.
Several of the coaches had also been professional athletes. Cedrick Wilson starred at the University of Tennessee before later playing for the Pittsburgh Steelers and winning a Super Bowl ring. Corey Holmes played for several years in the Canadian Football League, winning the league’s Most Outstanding Special Teams Player in 2005. He later became the mayor of Metcalfe, Mississippi. Lavante Epson played for several years in the Arena Football League, and Keiver Campbell played minor league baseball. Dante Dowers, who acted as a middleman in the scam, was on the Baltimore Ravens practice squad in 1996.Results of Investigation
To this point, 13 participants have been convicted of felonies, 10 of them serving time in prison. An additional 40 have reached diversion agreements that will result in losses of teaching licenses and an agreement not to even attempt to teach for at least five years. The agreements require those who got teaching jobs using Mumford’s services to pay restitution to the school districts that employed them.
Clarence Mumford – the ringleader – is currently serving a seven-year sentence in federal prison.
This investigation is being conducted by the Tennessee Bureau of Investigation and the United States Secret Service. Assistant U.S. Attorney John Fabian and Special Assistant U.S. Attorney Kirby May represent the government.Tampa Man Sentenced to More Than Four Years in Prison for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew sentenced Hantz Saint Marc today to four years and six months in federal prison for theft of government property and aggravated identity theft. Saint Marc pleaded guilty on February 19, 2014.
According to court documents, Saint Marc engaged in stolen identity refund fraud from April 2009 to May 2011, with two co-conspirators. In particular, in May 2011, Saint Marc stayed in one of two rented hotel rooms where lists of identifying information and pre-paid debit cards containing fraudulently-obtained tax refunds were found. Also found in both rooms were medical records stolen from the James A. Haley Veterans Hospital. The records contained the identifying information of U.S. veterans. At sentencing, he was found responsible for fraudulent tax returns requesting nearly $300,000 of government funds and victimizing more than 45 veterans.
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General, the Internal Revenue Service – Criminal Investigation, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Sara C. Sweeney.
St. Charles Woman Sentenced on Fraud ChargesRead the Press Release
St. Louis, MO – DANIELA SPIRIDON was sentenced to 78 months in prison involving a real estate scheme related to the purchase or sale of properties. In addition to the prison sentence, she was also ordered to pay $2,499,988 restitution and a fine of $5,000.
According to court documents, Spiridon was affiliated with several businesses from an office in Chesterfield, Missouri, which included A & AD Investments, LLC; CDRS ESC Investments; Sentrix Loan Production Office and others. As part of the scheme, Spiridon fraudulently offered to assist buyers in the purchases of properties that were acquired by lenders through foreclosure and held in inventory, known as Real Estate Owned (REO) properties. She offered to broker purchases or arrange for financing related to the purchase or sale of the REO properties. She had potential buyers place deposits on the properties, which she was to put into an escrow account, but she actually put the monies in a non-escrow account in one of her own companies. She often used buyers’ funds for personal expenses and to reimburse other buyers who demanded their funds be returned rather than to secure real property or financing.Spiridon, St. Charles, MO, pled guilty last September to six felony counts of wire fraud. She appeared today for sentencing before United States District Judge John A. Ross.
This case was investigated by the Federal Bureau of Investigation, Postal Inspection Service and Federal Housing Finance Agency-Office of Inspector General. Assistant United States Attorney Rob Livergood is handling the case for the U.S. Attorney's Office.Samsung Electronics America Agrees to Pay $2.3 Million to Resolve False Claims Act AllegationsRead the Press Release
Samsung Electronics America Inc. (Samsung) has agreed to pay $2.3 million to resolve allegations that it caused the submission of false claims for products sold on General Service Administration (GSA) Multiple Award Schedule (MAS) contracts in violation of the Trade Agreements Act of 1979 (TAA), the Justice Department announced today. Samsung is an electronics distributor and marketer headquartered in Ridgefield Park, New Jersey.
“The Department of Justice is committed to protecting public funds and guarding against abuse of federal procurement programs,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “This settlement upholds important trade priorities by ensuring that the United States only uses its buying power to purchase from countries that trade fairly with us.”
MAS contracts are contracts awarded by GSA to multiple companies supplying comparable products and services. Once GSA negotiates and awards the contract, any federal agency may purchase under it. Like many other federal procurement contracts, GSA MAS contracts require the vendor to certify that all products it offers for sale comply with the TAA. The TAA generally requires the United States to purchase products made in the United States, or another designated country with which the United States has a trade agreement.
Samsung has authorized resellers who hold GSA MAS contracts. Samsung certifies to the authorized resellers that Samsung will provide TAA compliant products and the resellers in turn list those products on the resellers’ GSA MAS contracts. The settlement resolves allegations that, from January 2005 through August 2013, Samsung caused resellers of its products to sell items on their GSA MAS contracts in violation of the TAA by knowingly providing inaccurate information to the resellers regarding the country of origin of the goods. The United States alleges that Samsung represented to the resellers, who in turn represented to federal agencies, that the specified products were made in TAA designated countries, generally Korea or Mexico, when the specified products were in fact manufactured in China, which is not a TAA designated country.
“It is unacceptable to sell unauthorized foreign electronics to the United States,” said GSA Acting Inspector General Robert C. Erickson. “We expect all companies doing business with the federal government to comply with contracting laws.”
The allegations resolved by the settlement were originally brought in a lawsuit filed by Robert Simmons, a former Samsung employee, under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the United States and to share in any recovery. Mr. Simmons’ share of the settlement has not yet been determined.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the District of Maryland, the Commercial Litigation Branch of the Justice Department’s Civil Division and the GSA’s Office of Inspector General.
The case is United States ex rel. Simmons v. Samsung Electronics America, Inc. et al., No. AW-11-2971 (D. Md.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Rothstein Associate Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Frank Preve, 70, of Coral Springs, pled guilty today in Ft. Lauderdale before U. S. District Judge James I. Cohn to conspiracy to commit wire fraud, in violation of 18 U.S.C. § 371. At his sentencing, scheduled for December 12, 2014, Preve faces a maximum statutory sentence of up to five years in prison.
In 2009, it was discovered that the law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA) was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. In a written factual stipulation filed in connection with his guilty plea, Preve admitted that he worked for a number of companies, referred to as “the Banyon Group,” which solicited lenders and investors into the confidential settlement business being offered by Rothstein. The defendant further admitted that, from on or about July 9, 2009 through October 31, 2009, he defrauded investors by not disclosing that Rothstein had failed to make payments that were due to the Banyon Group, that Rothstein had frozen certain bank accounts that were holding investor funds, that certain paperwork was not being prepared, and that verification of the investments was not taking place, all in violation of a private placement memorandum which had been circulated to potential investors by the Banyon Group. The defendant further admitted that, through these material misrepresentations and omissions, Preve caused more than $20 million to be paid by investors to the Banyon Group.
Mr. Ferrer commended the investigative efforts of the IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Rochester Man Charged with Conspiring to Produce Child PornographyRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Shahmell Robinson, 21, of Rochester, N.Y., was arrested and charged by criminal complaint with producing child pornography and conspiring with others to produce child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, a fine of $250,000 or both.
Assistant U.S. Attorney Marisa J. Miller, who is handling the case, stated that according to the complaint, the defendant raped a female child under the age of 16, while another individual filmed the incident. The conduct occurred at a residence in Greece on August 8, 2014. The videos came to the attention of law enforcement when another individual posted them on Facebook.com.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The criminal complaint is the culmination of an investigation on the part of members of the Federal Bureau of Investigation’s Cyber Task Force, along with Task Force officers from the Rochester Police Department, under the direction of Chief Michael Ciminelli and members of the Greece Police Department, under the direction of Chief Patrick Phelan.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Raleigh County Man Pleads Guilty to Possessing Child PornographyRead the Press Release
BECKLEY, W.Va. – A 32-year old Raleigh County man faces up to 10 years in prison after pleading guilty today to possession of child pornography, U.S. Attorney Booth Goodwin announced. David Alan Hunt, of Sophia, West Virginia entered a guilty plea before United States District Court Judge Irene C. Berger.
Hunt admitted that on March 23, 2012, he possessed pictures of prepubescent and pubescent minors engaged in sexual acts. The images were located on his personal computer and on a compact disc located in his residence. Hunt also admitted to using a file sharing program that allowed him to share the pornographic images over the Internet. U.S. Attorney Booth Goodwin said, “We are committed to the fight against criminals like David Alan Hunt who contribute to the exploitation and abuse of children. We will use every available tool to track them down and prosecute them to the fullest extent allowed by law.”
The court scheduled a sentencing hearing for Hunt on December 4, 2014 in Beckley, West Virginia.
The West Virginia Internet Crimes Against Children Task Force, Southern Regional Drug and Violent Crime Task Force, and Federal Bureau of Investigations conducted the investigation. Assistant United States Attorney Lisa G. Johnston is in charge of the prosecution.
This case is being brought as part of U.S. Attorney Goodwin’s ongoing initiative to combat child sexual exploitation and abuse in the Southern District of West Virginia.
Prisoners in Faribault Correctional Facility Filed More Than $400,000 in Fraudulent Tax Returns from PrisonRead the Press Release
United States Attorney Luger announced an indictment unsealed on Thursday, August 14, 2014, after the arrest of two defendants charged in a conspiracy to file fraudulent tax returns while incarcerated in state prison. A federal grand jury on August 12, 2014, returned a 21-count indictment charging TONY TERRELL ROBINSON, 30, and TANKA JAMES TETZLAFF, 39, with conspiring to defraud the United States and filing and making false claims against the government.
According to the indictment, from October 2009 through approximately September 2010, ROBINSON and TETZLAFF, who were incarcerated by the state of Minnesota in the Faribault Correctional Facility, conspired to prepare and file false federal income tax returns and fraudulently claim tax refunds. As part of their scheme, the defendants recruited other state prisoners to file false tax returns using their names and social security numbers. The defendants and other co-conspirators filed the tax returns using false wage and federal income tax withholding information.
According to the charges, tax refunds were paid by check, deposited directly into bank accounts, or deposited onto debit cards. Co-conspirators who were not in prison, including CARMEN ALLEN, VANESSA WALBERG, and DEEANNA CRIST, received refund checks at addresses they controlled, which were then cashed using a Power of Attorney signed by the filing co-conspirators. Refunds also were deposited directly into bank accounts controlled by the co-conspirators. As a result of the conspiracy, over $400,000 of false claims were made to the Internal Revenue Service.
ALLEN pleaded guilty to a conspiracy charge in March 2014 and was sentenced on August 7, 2014. Both, WALBERG and CRIST pleaded guilty to a conspiracy charge in May 2014 and are awaiting sentencing.
Assistant U.S. Attorney Michael Cheever is handling the prosecution.
This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division.
For more information about how to protect yourself from identity theft, visit http://www.stopfraud.gov/protect-identity.html.
The IRS-Criminal Investigations urges citizens to review the Taxpayer Guide to Identity Theft, which can be found at http://www.irs.gov.
Defendant Information: TONY TERRELL ROBINSON
Bayport, MN
Charges: • Conspiracy to Defraud the United States, 1 count
• False Claims against the United States, 10 counts
TANKA JAMES TETZLAFF
Duluth, MN
Charges: • Conspiracy to Defraud the United States, 1 count
• False Claims against the United States, 10 countsThe charges contained in an indictment are mere allegations and defendants are presumed innocent unless and until proven guilty.
Prior Felon from Las Cruces Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Christopher Alex Ruiz, 26, of Las Cruces, N.M., pleaded guilty this morning to being a felon in possession of a firearm and ammunition. The guilty plea was entered without the benefit of a plea agreement.
Ruiz is being prosecuted as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this 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 communities in New Mexico for as long as possible.
Ruiz was charged in March 2014, in a criminal complaint alleging that he unlawfully possessed a firearm and ammunition on Jan. 6, 2014, in Doña Ana County, N.M. Ruiz subsequently was indicted on that same charge. In Jan. 2014, Ruiz was prohibited from possessing firearms and ammunition because he previously had been convicted of the following felony offenses: aggravated burglary, forgery, unlawful carrying of a deadly weapon on school premises, larceny and of burglary of a vehicle on two occasions.
Ruiz has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Ruiz faces a statutory maximum penalty of ten years in prison. If adjudged to be a career criminal, Ruiz faces a mandatory minimum penalty of 15 years in prison.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fugitive Apprehension Unit of the New Mexico Corrections Department, the Las Cruces Police Department, the Doña Ana County Sheriff’s Office and the New Mexico State University Police Department with assistance from the 3rd Judicial District Attorney’s Office. Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Owner of Bankrupt Young Oil Company Sentenced to 33 Months for Securities Fraud, Mail Fraud, Failure to File Income Tax Returns, and Illegal Possession of A FirearmRead the Press Release
LOUISVILLE, Ky. – The owner of bankrupt Young Oil Company was sentenced to 33 months in prison today, by Senior U.S. District Judge Thomas B. Russell, for charges included in three separate indictments including failure to file an income tax return with the Internal Revenue Service, mail fraud in connection with the solicitation of investor funds for oil drilling partnerships, securities fraud, submitting false statements for the purchase of a firearm, and for the illegal possession of a firearm by a person addicted to controlled substances announced David J. Hale, United States Attorney for the Western District of Kentucky.
Anthony L. Young, 54, of Metcalfe County, Kentucky, fraudulently solicited investments through his company, Young Oil Corporation between November 2007 through December 2008. According to a March 8, 2014, plea agreement, Young falsely represented the cost to investors in three separate oil drilling partnerships. Investors believed the $750,000 solicited for each oil well represented the total drilling costs. However, Young admitted to using the majority of the money for other purposes including personal use. Also, during this same period, Young, by use of the United States mail, did defraud others, make untrue statements of material fact, and engage in acts, that operated as a fraud and deceit upon investors under programs under Young Oil Corporation with the purchase and sale of a security. Young did this by misrepresenting the total costs for each of the three Prospects and by misrepresenting his actual use of investor money.
Also, Young failed to file federal income tax returns as required by law for calendar years 2005 and 2006. During this time Young received taxable income of $496,000 in 2005, and his tax due was $133,943. In calendar year 2006, Young received taxable income of $1,167,000, and, was therefore legally required to file a federal income tax return. His tax due was $359,485 for 2006.
Young was also sentenced today, for causing another person to knowingly make a false statement and representation on an ATF Form 4473 in purchasing a .45 caliber pistol from a licensed firearms dealer and that he possessed the Hi-Point, Model JHP, .45 caliber pistol while being a person addicted to controlled substances, including cocaine and oxycodone.
This case was prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Kentucky Department of Financial Institutions, Division of Securities, the Internal Revenue Service Criminal Investigation Division, U.S. Postal Inspection Service, the United States Secret Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Orofino Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
COEUR D'ALENE - Matthew P. Carlson, 31, of Orofino, Idaho, pleaded guilty today to possession of sexually explicit images of minors, U.S. Attorney Wendy J. Olson announced. Carlson was indicted by a federal grand jury in Coeur d'Alene on April 15, 2014.
According to the plea agreement, Carlson ordered DVD’s containing sexually explicit images of minors and child erotica from a Canadian company. The DVD’s were sent to Carlson through the U.S. Mail. The defendant also admitted that he intentionally downloaded child pornography on the internet. Over 600 child pornography photographs were located on a computer and hard-drive seized from Carlson’s residence.
The charge is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and lifetime supervised release.
Sentencing is set for November 12, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d'Alene.
“The U.S. Attorney's Office will aggressively work with our local, state, and federal partners to stop the sexual exploitation of children,” said Olson. “Those who continue to victimize children by possessing or distributing images of children being sexually abused will be targeted and prosecuted.”
The case was investigated through the collaborative effort of the U.S. Postal Inspection Service, Federal Bureau of Investigation, and Orofino Police Department. These agencies participate in the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
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.”
North Little Rock Woman Guilty of Wire FraudRead the Press Release
Pocketed over $900,000 in Payroll SchemeLittle Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Regina Paff, 53, of North Little Rock, Arkansas, pled guilty to an Information charging her with one count of wire fraud in a hearing held before U.S. District Judge James M. Moody, Jr. The charges relate to a scheme to defraud her former employer, AGL Corporation.
Paff was employed by AGL Corporation in Jacksonville, Arkansas, and as part of her duties, she prepared their payroll. She devised a scheme to take money from the company by paying herself additional paychecks, issuing herself reimbursement checks to which she was not entitled, and paying herself commission checks. To do this, she created false payroll entries. Through her scheme, between October 2008 and September 2012, Paff received approximately $991,640.32 in money she was not entitled to and caused a total intended loss to the company of $1,166,157.55.
At the conclusion of her hearing, Paff was taken into federal custody. A sentencing hearing will be set by the court at a later date. Paff faces a maximum penalty of 20 years in prison and a fine of up to $250,000.00.
This investigation was conducted by Federal Bureau of Investigation. Assistant United States Attorney Jana Harris is representing the United States.
North Highlands Woman Pleads Guilty to Aggravated Identity Theft, Bank Fraud, and Possession of Stolen U.S. MailRead the Press Release
SACRAMENTO, Calif. — Elise Elizabeth Perez, 42, of North Highlands, pleaded guilty today to four counts of bank fraud, one count of aggravated identity theft, and two counts of possession of stolen mail, United States Attorney Benjamin B. Wagner announced.
According to court documents, Perez admitted to using stolen IDs and checks to buy merchandise and make deposits into her own account. On April 20 and April 21, Perez used the driver’s license and checks stolen from one victim to make purchases. On May 7 and May 8, she deposited two forged checks into her own bank account. On May 30, 2014, a search warrant was executed at Perez’s residence and law enforcement found many items of stolen property, U.S. mail, and personal financial identification information of others.
This case is the product of an investigation by the Sacramento Office of the United States Postal Inspection Service with assistance from the Sacramento County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.San Francisco Division Inspector in Charge Rafael Nunez of the United States Postal Inspection Service stated: “We are working closely with the U.S. Attorney's Office and our partners in law enforcement to ensure the U.S. Mail system is not used to facilitate criminal activity.”
Perez is scheduled to be sentenced by United States District Judge Lawrence K. Karlton on November 4, 2014. She faces up to 30 years in prison for bank fraud, up to five years in prison for possession of stolen mail, and a consecutive mandatory minimum sentence of two years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
New Orleans Man, Giray Biyiklioglu, Sentenced to 16 Years in Prison for Wire Fraud, Aggravated Identity Theft, Tax, and Money Laundering ChargesRead the Press Release
United States Attorney Kenneth Allen Polite, Jr. and Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division announced that GIRAY BIYIKLIOGLU, a/k/a “Johnny Bryan,” age 31, a Turkish national and resident of New Orleans, was sentenced today by U.S. District Judge Jay C. Zainey to 192 months in prison for conducting a scheme to defraud PayPal, in which he used the names, addresses, and/or Social Security numbers of dozens of identity theft victims. On October 31, 3013, following a four-day jury trial, BIYIKLIOGLU was convicted of thirteen counts of wire fraud, six counts of aggravated identity theft, two counts of tax evasion, and nineteen counts of money laundering, related in part to his purchases of expensive motorcycles and his wiring of fraud proceeds to his native Turkey. The Court further ordered BIYIKLIOGLU to pay restitution of $324,551.89 and to forfeit fraud proceeds, including a Ducati motorcycle, a Kawasaki jet ski, and more than $85,919.77 in U.S. currency.
According to court documents and proceedings, BIYIKLIOGLU devised a scheme to defraud PayPal, Inc. using PayPal accounts he had fraudulently set up in the names of other persons. As proven at trial, the defendant wired funds from bank accounts in his name, through the fraudulent PayPal accounts, and then back to bank accounts in his name. The trial evidence further showed that the defendant then falsely claimed to the original banks that the wire transfers he had initiated to PayPal were unauthorized. These false claims caused the banks to debit PayPal and credit the defendant’s original bank accounts. According to the evidence adduced at trial, the defendant in fact maintained control over all funds throughout the scheme.
The aggravated identity theft charges stem from the BIYIKLIOGLU’s use of the personal information of six victims in furtherance of his wire fraud scheme. The criminal tax violations relate to BIYIKLIOGLU’s evasion of his 2010 and 2011 individual income taxes. The money laundering charges pertain to BIYIKLIOGLU’s concealment of the fraud proceeds, including by wiring funds to Turkish banks, as well as his purchases of the motorcycles and jet ski.
“Biyiklioglu stole the identities of innocent victims to finance his own lavish lifestyle,” stated U.S. Attorney Kenneth Allen Polite, Jr. “The sentencing imposed today ensures that he will be brought to justice for defrauding these individuals and several financial institutions as part of his scheme.”
“Mr. Biyiklioglu’s criminal conduct violated many laws, including tax evasion, identity theft, and money laundering,” stated Gabriel L. Grchan, Special Agent in Charge, IRS Criminal Investigation. “Let his sentence serve as a warning to others considering this type of criminal activity. Giray Biyiklioglu will not only have to serve time in federal prison, but will also be required to forfeit the fruits of his criminal enterprise.”
The case was investigated by Special Agents of the United States Secret Service and the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Trial Attorney Hayden Brockett of the U.S. Department of Justice, Tax Division and Assistant United States Attorney Chandra Menon.
NGK Spark Plug Co. Ltd. Agrees to Plead Guilty to Price Fixing and Bid Rigging on Automobile Parts Installed in U.S. CarsRead the Press Release
NGK Spark Plug Co. Ltd., an automotive parts manufacturer based in Nagoya, Japan, has agreed to plead guilty and to pay a $52.1 million criminal fine for its role in a conspiracy to fix prices and rig bids for spark plugs, standard oxygen sensors, and air fuel ratio sensors installed in cars sold to automobile manufacturers in the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court for the Eastern District of Michigan in Detroit, NGK Spark Plug engaged in a conspiracy to rig bids for, and to fix, stabilize and maintain the prices of, spark plugs, standard oxygen sensors and air fuel ratio sensors installed in cars sold to automobile manufacturers such as DaimlerChrysler AG, Honda Motor Co. Ltd. and Toyota Motor Corp., among others, in the United States and elsewhere. In addition to the criminal fine, NGK Spark Plug has agreed to cooperate in the department’s ongoing investigation. The plea agreement will be subject to court approval.
“Today’s guilty plea is just another example of the commitment of the Antitrust Division to preserving fair and legal competitive practices,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “We will continue to do whatever it takes to protect U.S. consumers and businesses.”
According to the charge, NGK Spark Plug and its co-conspirators carried out the conspiracy through meetings and conversations in which they discussed and agreed upon bids and price quotations on bids to be submitted to certain automobile manufacturers and to allocate the supply of the products to those manufacturers. NGK Spark Plug sold spark plugs, standard oxygen sensors, and air fuel ratio sensors at non-competitive prices to auto makers in the United States and elsewhere in furtherance of the agreement. NGK Spark Plug’s involvement in the conspiracy lasted from at least as early as January 2000 until on or about July 2011.
NGK Spark Plug manufactures and sells spark plugs, standard oxygen sensors and air fuel ratio sensors. A spark plug is an engine component for delivering high electric voltage from the ignition system to the combustion chamber of an internal combustion engine. Oxygen sensors are located in the exhaust system and measure the amount of oxygen in the exhaust. Air fuel ratio sensors are “wideband” oxygen sensors that enable more precise control of the air/fuel ratio injected into the engine.
The charge against NGK Spark Plug is the latest in the department’s on-going investigation into anticompetitive conduct in the automotive parts industry. These are the first charges filed relating to spark plugs, standard oxygen sensors and air fuel ratio sensors sold to automobile manufacturers.
Including NGK Spark Plug, 28 companies and 26 executives have pleaded guilty or agreed to plead guilty in the division’s ongoing investigation into price fixing and bid rigging in the auto parts industry and have agreed to pay a total of $2.4 billion in criminal fines.
NGK Spark Plug is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office with the assistance of the FBI Headquarters’ International Corruption Unit. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.
Mt. Oliver Grocer Gets Probation with Home Detention for Defrauding Food Stamp ProgramRead the Press Release
PITTSBURGH - A grocery store owner has been sentenced in federal court to three years probation and six months home detention on his convictions of wire fraud and food stamp fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on Emile Bizimungu, 32, of Pittsburgh.
According to information presented to the court, Bizimungu was the owner of Dollar Grocery, a retail food store formerly located on Brownsville Road in Mt. Oliver Borough. Defendant's retail store participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items using food stamp benefit cards at the defendant's retail store. The defendant was aware that program rules strictly prohibited the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, Bizimungu exchanged food stamp benefits for cash on a discounted basis, usually giving the customers only 50 cents on the dollar for their food stamp benefits. The defendant also permitted food stamp customers to purchase ineligible items with food stamp benefits and accepted food stamp benefits as payment on credit accounts and loans.
Judge Diamond also ordered Bizimungu to pay $24,000 in restitution to the USDA.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Homeland Security Investigations for the investigation leading to the successful prosecution of Bizimungu.
Meridian Woman Pleads Guilty to Bank RobberyRead the Press Release
COEUR D'ALENE - Jennifer Lillian Balfe, 19, of Meridian, Idaho, pleaded guilty on August 19, 2014, to bank robbery, U.S. Attorney Wendy J. Olson announced. Balfe was indicted by a federal grand jury in Coeur d'Alene on May 20, 2014.
According to the plea agreement, Balfe admitted that on May 16, 2014, she drove the get- away vehicle during a robbery of the U.S. Bank in Cottonwood, Idaho.
The charge is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
Sentencing is set for sentencing November 12, 2014, before U.S. District Judge Lodge at the federal courthouse in Coeur d'Alene.
The case was investigated by the Cottonwood Police Department, Lewiston Police Department, Idaho County Sheriff’s Office, Nez Perce County Sheriff’s Office, and the Federal Bureau of Investigation (FBI).
Livermore, Kentucky, Felon Sentenced to 12 Months in Prison for Distribution of Anabolic Steroids and Possession of A FirearmRead the Press Release
OWENSBORO, Ky. – A convicted felon, who resided in Livermore, Kentucky, was sentenced today in U.S. District Court, by Chief Judge Joseph H. McKinley Jr., to 12 months in prison, followed by a three year period of supervised release, for possession with the intent to distribute anabolic steroids and for the illegal possession of a firearm by a convicted felon, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Wayne B. Williams pleaded guilty to the four count federal indictment on May 14, 2014. According to the plea agreement, on March 29 and April 3, 2013, Williams delivered anabolic steroids to an Owensboro Police Department (OPD) confidential source. Thereafter, on April 24, 2013, Williams was arrested for the two deliveries and a search warrant was executed at his home. During the search of Williams home, Kentucky State Police and OPD found numerous viles of anabolic steroids and labels for the steroids. They also found a Highpoint .380 caliber semiautomatic firearm and six rounds of .380 ammunition in a magazine, and an additional .40 rounds of .380 ammunition. Williams was previously convicted of a federal felony on June 27, 2011 and is prohibited from possessing a firearm or ammunition.
If convicted at trial, Williams faced up to 25 years in prison, a fine of $1,000,000 and a minimum term of supervised release of atleast two years and up to any number of years, including life.
This case was prosecuted by Assistant United States Attorney Daniel Kinnicut and was investigated by the Owensboro Police Department, Kentucky State Police and the McLean County Sheriff’s Department.
Lincoln Parish Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
MONROE, La. –A Ruston man pleaded guilty to bringing methamphetamine into Louisiana for sale, U.S.Attorney Stephanie A. Finley announced today.
Gale Allen Schoonover, 54, of Ruston, La., entered a conditional guilty plea for one count of possession with intent to distribute methamphetamine before U.S. Magistrate Judge Karen L. Hayes. The plea will become final when accepted by U.S. District Court Judge Robert G. James. According to evidence presented at the guilty plea, Schoonover was arrested on March 14, 2014 after returning from Dallas, where he had obtained methamphetamine that he intended to sell in Lincoln Parish. Law enforcement agents received information that the defendant was transporting methamphetamine for sale and monitored his whereabouts until the arrest. Schoonover possessed a total of 105.62 grams of pure methamphetamine as well as 1.735 kilograms of marijuana.
Schoonover faces up to 20 years in prison, three years supervised release, and a $1 million fine. A sentencing date of December 11, 2014 was set.
The DEA and the Lincoln Parish Narcotics Enforcement Team conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
Lansing Man Pleads Guilty in Federal Mortgage Fraud ProbeRead the Press Release
Richard Hollern Admits Participating in a Conspiracy to Commit Bank Fraud
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick Miles announced today that Richard Hollern, 39, of Grand Ledge, Michigan pled guilty to a conspiracy to commit bank fraud in connection with his ownership in CDC Investments. The guilty plea occurred before U.S. District Judge Robert Holmes Bell today.
Hollern faces up to five years in prison. Sentencing in the case is scheduled for December 1, 2014.
Hollern admitted that he conspired with others at CDC, a Lansing real estate and investment company, to defraud banks in connection with mortgage loans. The fraudulent scheme enabled the perpetrators to use bank funds to enrich themselves as a result of sham real estate transactions. The felony conspiracy charge alleges that Hollern and his coconspirators at CDC defrauded mortgage lenders on 30 separate occasions resulting in losses of $2,325,000.
Hollern’s prosecution is the result of an investigation by the Mortgage Fraud Task Force, comprised of federal investigators including the FBI, U.S. Secret Service, the U. S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies. To date, eleven individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all the defendants and restitution orders exceeding $14,000,000. Two additional individuals, Anthony Grundstrom and Brent Nolan have pled guilty and are awaiting sentencing.
U.S. Attorney Miles noted the cooperation among federal, state and local investigators participating in the Mortgage Fraud Task Force. He also emphasized that its work was not finished: "Mortgage fraud played a significant role in the financial crisis that brought much misery to Michigan citizens. My office will continue to vigorously pursue the perpetrators of these frauds so they will face the punishment they have earned."
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Laguna Pueblo Man Pleads Guilty to Assaulting Laguna Pueblo Woman and a Federally Commissioned Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Preston Marmolejo, 32, a member and resident of Laguna Pueblo, pleaded guilty this morning to two counts of a four-count indictment under a plea agreement with the U.S. Attorney’s Office. Under the terms of the plea agreement, Marmolejo will be sentenced to a prison term within the range of 100 to 120 months followed by a term of supervised release to be determined by the court.
Marmolejo was arrested on Dec. 2, 2013, on a criminal complaint charging him with assault with a dangerous weapon and assault on a federal officer. He subsequently was charged in a four-count indictment with assault with a dangerous weapon, assault resulting in serious bodily injury, assaulting a federal officer, and using a firearm in furtherance of a crime of violence.
According to court filings, on Nov. 29, 2013, officers of the Pueblo of Laguna Police Department responded to a domestic violence call reporting that Marmolejo was assaulting his girlfriend, a Laguna Pueblo woman, with a knife. When the tribal officers arrived at Marmalejo’s residence, Marmolejo was holding a shotgun. Marmolejo disregarded the tribal officers’ commands that he put the weapon down and instead fired towards the officers and injured an officer who is federally commissioned by the BIA.
During today’s proceedings, Marmolejo entered guilty pleas to Counts 1 and 3 of the indictment charging him with assault with a dangerous weapon and assaulting a federal officer, respectively. In his plea agreement, Marmolejo admitted assaulting the female victim with a knife and the federal commissioned tribal police officer with a shotgun.
Marmolejo is in federal custody and remains detained pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the FBI, the Laguna Agency of the BIA’s Office of Justice Services, and the Pueblo of Laguna Tribal Police Department, and is being prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Internet Child Sexual Predator Sentenced to PrisonRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that John David Przenkop, age 47, of Columbus, Georgia, appeared in federal court on Tuesday, August 19, 2014 and was sentenced to a term of imprisonment of 120 months to be followed by lifetime supervision after his release from prison. Przenkop was sentenced by the Honorable Clay D. Land, U.S. District Court Judge, in Columbus, Georgia.Mr. Przenkop had admitted that on or about February 18/19, 2010, he enticed two minor females, ages fourteen (14) and fifteen (15), with promises of gifts, a shopping spree and dinner in exchange for sex. Mr. Przenkop made contact with the two minor victims via the social media site, MySpace. Mr. Przenkop transported the two minor victims from Phenix City, Alabama to his residence in Columbus, Georgia. While at his residence, Mr. Pzenkop engaged in sexual conduct with both minor victims which he also video-recorded. A search of Mr. Przenkop’s residence uncovered video recordings of the sexual encounters with the two minor females as well as other females, adults and juveniles.
“Cases involving the sexual exploitation of minors are priorities of my office and of the United States Department of Justice. There is no parole in the Federal system. After serving his sentence of ten years in the penitentiary, Mr. Przenkop will be supervised by federal authorities for the remainder of his life in order to insure that he does not prey upon our children again,” said United States Attorney Michael J. Moore.
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “This case makes it very clear that, while the various social media platforms may serve a legitimate purpose, they also provide a means for child predators such as Mr. Przenkop to access and do harm to unsuspecting and unsupervised children. The FBI is proud of the role it played in getting this dangerous individual off of our streets.”
The case was investigated by the Federal Bureau of Investigation and the Columbus Police Department. Assistant U.S. Attorney Michael T. Solis prosecuted this matter.
Questions concerning this case should be directed to Karen Moore, United States Attorney’s Office, at (478) 621-2606.Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Ostby in Billings on August 19, 2014, and entering pleas of Not Guilty were:
SCOTT JAMES NICHOLS, a 42-year-old resident of Lockwood, appeared on charges of sexual exploitation of children, attempted sexual exploitation of children, distribution of child pornography and possession of child pornography. If convicted of the most serious charges contained in the indictment, NICHOLS faces 30 years in prison, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation and Billings Police Department. PACER Case Reference: 14-81
Appearing before U.S. Magistrate Judge Lynch in Missoula on August 19, 2014, and entering pleas of Not Guilty were:
ROBERT DOUGLAS KORTUM, a 59-year-old resident of Anaconda, appeared on charges of possession with intent to distribute prescription drugs. If convicted of the most serious charges contained in the indictment, KORTUM faces 20 years in prison, $1,000,000 in fines and 3 years supervised release. The case was investigated by the Drug Enforcement Administration and Montana Division of Criminal Investigations. PACER Case Reference: 14-18
Appearing before U.S. Magistrate Judge Strong in Great Falls on August 19, 2014, and entering pleas of Not Guilty were:
JOHN GRIMSON LYON, a 60-year-old resident of Clifton, Virginia, appeared on charges of wire fraud; false claims and theft of government property. If convicted of the most serious charges contained in the indictment, LYON faces 20 years in prison, $250,000 in fines and 3 years supervised release. The case was investigated by U.S. Department of Interior Office of Inspector General. PACER Case Reference: 14-57
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hoover Crips Street Gang Members and Associates Charged with Drug Conspiracy and Other Criminal OffensesRead the Press Release
TULSA, Okla. — In a 5th Superseding Indictment, unsealed today in the United States District Court, approximately 52 members and associates of the Hoover Crips Street Gang and the Donald Walter’s Drug Trafficking Organization were charged with 238 criminal offenses, including drug conspiracy, engaging in a continuing criminal enterprise, weapon offenses, retaliating against a witness, and conspiring to promote dog fighting.
The charges are the result of a three-year U.S. Attorney’s Office, Organized Crime Drug Enforcement Task Force investigation, led by the Tulsa Police Department’s Homicide and Special Investigation Divisions, and the Federal Bureau of Investigation in collaboration with the U.S. Drug Enforcement Administration; the Tulsa County District Attorney’s Office; the U.S. Marshal Service; the Oklahoma Attorney General’s Office; the Tulsa County Sheriff’s Office; the Broken Arrow Police Department; the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; the Oklahoma Highway Patrol; and the Norman Police Department.
The charges were announced today at a press conference by United States Attorney Danny C. Williams Sr., Northern District of Oklahoma; FBI Special Agent in Charge James E. Finch, Oklahoma City Division; Oklahoma Attorney General E. Scott Pruitt; Tulsa County District Attorney Tim Harris; Tulsa Police Chief Chuck Jordan; and DEA Special Agent in Charge Dan Salter.
According to the allegations in the 5th Superseding Indictment, from April 2011 to August 2014, the defendants conspired to purchase cocaine and marijuana from the Sinaloa Cartel and the Los Zeta Cartel. Both Cartels operated in Mexico, and sold drugs in the Tulsa area. During the conspiracy, money generated was used for dog fighting, gambling, travel, and vehicle purchases.
The 5th Superseding Indictment further alleges, the defendants operated “crack houses” in the Tulsa area for cooking, packaging, and selling of cocaine. These houses were also used as locations for money drops. The defendants would also use dozens of coded phrases when communicating and would “drop” phones in order to avoid law enforcement detection.
The defendants are also charged with purchasing, training, and breeding pit bulls for dog fighting.
In addition, Lorell Antonio Battle and Gaywone Dekeith Blades are charged with conspiring to retaliate against fellow gang member Anthony Campbell, who was a witness in a Federal trial and who provided information to law enforcement about street gang activities and other crimes. On April 3, 2013, Battle allegedly shot approximately 13 times at close range and killed Campbell.
If convicted, the defendants face forfeiture of vehicles, firearms, and nine (9) residences used to manufacture and distribute crack cocaine. The defendants also face entry of a $10 million dollar criminal forfeiture money judgment.
Assistant United States Attorneys Allen J. Litchfield, Robert T. Raley, Eric O. Johnston, and Catherine Depew are prosecuting the case on behalf of the United States.
An indictment is one method of charging defendants with alleged violations of Federal Law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
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U.S. v. Lorell Antonio Battle et al.pdf (1.31 MB)
Henderson, Kentucky, Man Pleads Guilty to Multiple Bank RobberiesRead the Press Release
OWENSBORO, Ky. – A Henderson County, Kentucky man pleaded guilty in U.S. District Court today, before Chief Judge Joseph H. McKinley Jr., to three charges of bank robbery, announced David. J. Hale, United States Attorney for the Western District of Kentucky.
Weston Neel Hurd, age 40, pleaded guilty to robbing two banks located in Owensboro, Kentucky and one bank located in Henderson, Kentucky,
In court, Hurd admitted that on August 6, 2012, in Henderson County, Kentucky, he robbed the Ohio Valley Financial Group, located at 400 Barret Boulevard, in Henderson, of approximately $2,651 by force, violence and intimidation. Neel admitted that on October 2, 2012, in Daviess County, Kentucky, he robbed the Kentucky Telco Federal Credit Union, located at 933 Tamarack Road, in Owensboro, of $2,878 by force, violence and intimidation. Neel further admitted that on December 28, 2012, in Daviess County, Kentucky, he robbed the First Security Federal Bank, located at 3560 Frederica Street, Owensboro, of $1,131 by force, violence and intimidation.
If convicted at trial, Hurd faced no more than 20 years for each count, for a combined total of 60 years in prison, a $250,000 fine for each count, and a three year period of supervised release. Hurd is being held in the Daviess County Detention Center. Sentencing is scheduled before Chief Judge McKinley, in Owensboro, on November 24, 2014.
This case is being prosecuted by Assistant United States Attorney Daniel P. Kinnicutt and is being investigate by the Federal Bureau of Investigation (FBI), Owensboro Police Department and Henderson Police Department.
Head of Frank Robino Companies Sentenced to 24 Months in Prison for Embezzling His Employees’ Retirement SavingsRead the Press Release
WILMINGTON, DE – Michael A. Stortini, the former managing member and part owner of the Frank Robino Companies (“FRC”) – a Delaware real estate development company – was sentenced yesterday by United States District Court Judge Richard G. Andrews to 24 months of imprisonment for embezzling $606,500 in retirement savings from his employees’ 401(k) plan, as well as failing to pay hundreds of thousands of dollars in payroll taxes to the Internal Revenue Service (“IRS”). In addition to the prison term, Judge Andrews ordered Stortini to pay restitution, with interest, to the 401(k) plan beneficiaries, as well as $638,468 to the IRS.
According to facts disclosed at Stortini’s plea and sentencing hearings, when FRC encountered difficult financial times in 2009, Stortini misappropriated funds from the employees’ retirement plan to pay operating expenses associated with the company, as well as fund real estate projects with which FRC and Stortini were involved. Around the same time, Stortini took approximately $900,000 for himself from bank accounts linked to FRC and its projects – $500,000 of which he spent at casinos – and failed to pay nearly half a million dollars in payroll taxes to the IRS.
Judge Andrews stated that he believed the two-year sentence was necessary to promote respect for the law and deter others from committing similar breaches of trust. Recalling an adage that he heard in law school, Judge Andrews stated in imposing sentence: “when you have a fiduciary relationship for money like that, your money is white, the money you control is black. And if you mix the two of them together, you’re going to be wearing black and white stripes.”
Acting United States Attorney David C. Weiss praised the collaborative work of the agencies involved –the IRS Criminal Investigation division, United States Department of Labor, and Employee Benefits Security Administration – and highlighted the investigation as an “example of our commitment to find individuals who criminally exploit positions of trust within our community and bring them to justice.”
"It is a serious crime when employers abuse their fiduciary responsibilities to their employees by lining their pockets with tax dollars intended to protect their employees’ futures," said Akeia Conner, Special Agent in Charge, IRS Criminal Investigation. "Mr. Stortini's actions not only caused negative ramifications to those financially connected to him, but also to the honest taxpayer who suffers from the stress to the tax system that Mr. Stortini’s actions caused. Tax crimes have erroneously been referred to as victimless, but that position could not be more wrong since we all end up paying when someone attempts to evade our tax system."
The case was prosecuted by Assistant United States Attorney Shawn A. Weede. For further information, please contact Public Information Officer Kim Reeves at (302) 573-6277, ext. 16287.
Grand Rapids Landlords to Pay $550,000 and Terminate Manager’s Responsibilities to Settle Sexual Harassment Lawsuit Filed by Justice DepartmentRead the Press Release
The Justice Department announced today that the owners and operators of the Alger Meadows Apartments in Grand Rapids, Michigan, have agreed to pay $550,000 in damages and civil penalties and to terminate property manager Dale VanderVennen’s role in managing the complex to settle a lawsuit alleging that VanderVennen sexually harassed female tenants in violation of the Fair Housing Act (FHA).
The department’s complaint, filed in September 2013, alleged that Dale VanderVennen, the manager of 16 apartment buildings known as Alger Meadow Apartments, sexually harassed female tenants at the complex in violation of the FHA. The lawsuit alleged that VanderVennen made unwelcome sexual comments and sexual advances to female tenants, touched himself in a sexual manner in front of female tenants, entered their homes without notice or permission, conditioned housing benefits on tenants engaging in sexual acts and took adverse action against tenants who refused his advances. The lawsuit also included the owners of the complex and alleged that they were liable for VanderVennen’s actions. The department began its investigation after the Fair Housing Center of Greater Grand Rapids brought complaints about VanderVennen’s conduct to the department’s attention.
The settlement, which was approved today by Judge Robert J. Jonker, requires the defendants to pay $510,000 to victims of VanderVennen’s sexual harassment and $40,000 to the United States The $510,000 will be used to pay damages to thirteen women who have already been identified and to any additional victims who are identified through the process established in the settlement agreement. Persons who believe they were subjected to sexual harassment by VanderVennen should contact the Justice Department at 1-800-896-7743, option 5, or e-mail the Justice Department at [email protected] .
“The magnitude of this settlement reflects the seriousness of the defendant’s conduct,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “No woman or her family should have to endure sexual harassment to keep the keys to their home.”
“The U.S. Department of Justice takes the American civil rights laws very seriously,” said U.S. Attorney Patrick A. Miles Jr. for the Western District of Michigan. “We fight to protect a variety of rights, including the right to housing without being discriminated against or sexually harassed. My office is pleased by this settlement.”
The consent decree also prohibits all of the defendants from engaging in discrimination, and it requires that the owners create non-discrimination policies for their properties and participate in fair housing training to prevent such conduct in the future. It also bars VanderVennen from personally participating in the management or operation of residential rental properties in the future and requires him to retain an independent manager to manage any rental properties he may later own. In addition to VanderVennen, the defendants include four closely held companies that own and operate Alger Meadows. Those companies are Jack and Linda Properties LLC, DDJ Rental Real Estate LLC, Calcutta Associates LLC and LLJ LLC, all of which are affiliated with Jack VanderVennen.
Fighting illegal housing discrimination is a top priority of the Department of Justice. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp .
Related Materials:
VanderVennen Consent Decree
Former Office Manager Charged with Embezzling $200,000Read the Press Release
An information was filed in U.S. District Court today charging the former office manager of a Cleveland law firm with embezzling approximately $200,000 from the firm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Kelly R. Logan, age 42, of Seven Hills, Ohio, is charged in the one-count information. The information alleges that from February 2002 to November 2013, Logan forged approximately 111 checks drawn on accounts maintained by the law firm, and made them payable to her. In addition, Logan made false entries in the books of the law firm to conceal her embezzlement.
If convicted, the defendant’s sentence will be determined by the court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Ann C. Rowland following an investigation by the Federal Bureau of Investigation.
Former Kinston Fire Captain and Reserve Deputy with the Greene County Sheriff’s Office Sentenced to 188 Months in Child Pornography CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever, III, sentenced THOMAS ANDREW TAYLOR, 53, of Grifton, to 188 months imprisonment followed by 15 years of supervised release.
On February 3, 2014, TAYLOR was named in a Criminal Information charging him with one count of Receipt of Child Pornography in violation of Title 18, United States Code, Section 2252(a)(2). On March 26, 2014, TAYLOR pled guilty to that charge.
According to the investigation, in September of 2012, law enforcement in Philadelphia identified TAYLOR as an individual using a screen name to post pornographic images of children. On January 11, 2013, the National Center for Missing and Exploited Children (NCMEC) notified law enforcement that a subject later identified as TAYLOR, accessed Facebook and posted an image of child pornography on December 22, 2012. Facebook reported the image to NCMEC on December 25, 2012. A search warrant was executed at TAYLOR’S residence on May 31, 2013, and he agreed to a noncustodial interview. During that interview, TAYLOR admitted using his laptop computer, as well as his Yahoo! and Gmail accounts, to trade child pornography with others. On the way to the interview, TAYLOR attempted to destroy evidence by throwing a laptop into a creek off Highway 58 North in Kinston. However, the computer was recovered and was processed for evidence. A subsequent forensic examination revealed that TAYLOR’S child pornography collection included 334 images and 34 videos.
The criminal investigation of this case was conducted by the U.S. Immigration and Customs Enforcement’s Department of Homeland Security Investigations (HSI), Federal Bureau of Investigation, North Carolina Alcohol Law Enforcement, and the Lenoir County Sheriff’s Office. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Former Hotel Broker Sentenced to 11 Years in Prison for $55 Million Fraud SchemesRead the Press Release
ALEXANDRIA, Va. – The president of an international hotel brokerage firm was sentenced today to 11 years in prison for conducting a wide-ranging set of multi-million dollar fraud schemes involving the sale of several hotel properties.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Timothy A. Gallagher, Acting Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the defendant was sentenced by U.S. District Judge Liam O’Grady.
Robert Timothy Koger, 48, formerly of Oakton, Virginia, was the president and sole owner of Molinaro-Koger, an international hotel real estate brokerage and advisory firm headquartered in Tysons Corner, Virginia. Koger pleaded guilty on Jan. 16, 2014 to wire fraud and conspiracy to commit wire fraud.
According to court records, the charges arose from three separate schemes executed by Koger, which resulted in losses exceeding $55 million. The first scheme involved Koger’s illegal flipping of hotels and promissory notes securing hotels in which Host Hotels and Resorts, L.P. (“Host”) and others were victims. In the second fraud, Koger executed a Ponzi scheme to steal and launder funds received from prospective buyers of hotels that were to be held in escrow while Koger negotiated with the hotel’s owners regarding the terms of the sale. In the third scheme, Koger defrauded a Tampa, Florida-based physician and businessman in connection with the latter’s ownership of a hotel in Pittsburgh, Pennsylvania.
In the first scheme, after Koger was hired by Host as a broker to sell two of its hotels, Koger located legitimate buyers for the properties at a fair market price. Rather than selling the hotels directly to the legitimate buyers, however, Koger recruited straw buyers controlled by him to whom he arranged the sale of the hotels by Host for considerably less than the legitimate buyers had agreed. The straw buyers then immediately turned around and sold the hotels to the legitimate buyers at the higher price previously arranged by Koger. Koger pocketed the difference between the legitimate purchase price and the straw buyer’s price, plus the commissions that Host paid Koger for arranging the “front end” sales with the straw buyers. In a similar manner, Koger defrauded Host by having a straw buyer purchase promissory notes securing European hotel properties in which Host was interested. The straw buyer then resold the notes to Host for considerably more than it paid for them. In total, Koger defrauded Host of over $22 million.In the second fraud scheme, Koger received deposits from prospective buyers of hotels that were to be held in escrow while Koger negotiated with the hotel’s owners regarding the terms of the sale. Contrary to his representations to the prospective buyers, Koger was not actually holding their funds in escrow. Instead, he used their funds to pay for personal and business expenses, including to repay prospective buyers whose funds previously were purportedly held in escrow by Koger.
Finally, Koger defrauded “K.P.,” a Tampa-based investor who owned the Wyndham Grand Hotel in Pittsburgh. A management firm that held a promissory note secured by the hotel decided to sell the note, and K.P. submitted an offer to buy the note for less than its face value. In what is described in court records as a “walk-away fraud,” Koger used an alias (“Rick Thompson”) to contact K.P. about his bid for the hotel’s promissory note. As part of this process, Koger (acting as “Rick Thompson”) falsely claimed to K.P. that “Thompson” had submitted a higher bid for the note than K.P.’s bid, but “Thompson” then offered to withdraw his bid if K.P. paid “Thompson” $2.5 million to walk away from his purportedly higher bid. After K.P. paid off “Thompson,” Koger used a different alias (“John Stern”) to contact K.P. again about the property. In what is described in court records as a “break-up fraud,” “Stern” falsely offered to buy the hotel from K.P., but then threatened to sue K.P. over an alleged breach of contract related to the sale, unless K.P. agreed to pay “Stern” $15 million.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorneys Michael E. Rich and Chad I. Golder prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-18.
Former Boxing Champ Sentenced to 87 Months in Prison for East Bay Bank Robbery SpreeRead the Press Release
OAKLAND – James Quindale Page was sentenced today to 87 months in prison for a bank robbery spree in which he robbed banks throughout the East Bay, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Page admitted to committing the following bank robberies:
Date
Bank
Location
Amount Stolen
3/6/2013
Chase Bank
1510 Palos Verdes Mall, Walnut Creek
$1,856
3/12/2013
Wells Fargo
4767 Hopyard Road, Pleasanton
$670
5/24/2013
U.S. Bank
2890 North Main Street, Walnut Creek
$1,339
5/25/2013
Wells Fargo
3365 Deer Valley Road, Antioch
$1,600
5/29/2013
Bank of America
2545 Main Street, Oakley
$1,507
6/3/2013
Chase
5747 Christie Avenue, Emeryville
$7,033
6/7/2013
U.S. Bank
3636 Lone Tree Way, Antioch
$1,280
6/8/2013
Wells Fargo
3525 Mount Diablo Boulevard, Lafayette
$5,450
In his robberies, Page entered the banks and passed the victim tellers notes announcing that he was robbing the bank and making a demand for money.
Page, 43, of Pittsburg, Calif., was arrested on June 10, 2013. He was charged by federal criminal complaint on June 11, 2013, and a grand jury returned an indictment charging him with six counts of bank robbery, in violation of 18 U.S.C. § 2113(a) on June 20, 2013. Page pleaded guilty on Feb. 7, 2014, admitting all six charged bank robberies and two additional bank robberies. Page, who was on federal supervised release at the time he committed these bank robberies, also admitted that the robberies violated the terms of his supervised release. Page has been in custody since his arrest.
The sentence was handed down by the Honorable Jeffrey S. White, United States District Court Judge in Oakland. Judge White sentenced Page to 63 months in prison for the new criminal violations and 24 months for committing the robberies while on supervised release, for a total sentence of 87 months. Judge White also sentenced Page to an additional 3-year period of supervised release.
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, the Walnut Creek Police Department, the Pleasanton Police Department, the Antioch Police Department, the Oakley Police Department, the Emeryville Police Department, and the Lafayette Police Department.
(Page complaint )
(Page indictment )
Florida Man Pleads Guilty in Manhattan Federal Court to Hiding over $1 Million in Secret Bank Accounts in Switzerland and IsraelRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Shantelle P. Kitchen, the Acting Special Agent-in-Charge of the New York Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today that BERNARD KRAMER pled guilty to conspiring to conceal from the IRS over one million dollars he had hidden in Swiss and Israeli bank accounts, and willfully failing to disclose those accounts on his U.S. tax returns. KRAMER, who is cooperating with the Government, entered his guilty plea today before U.S. District Judge Alvin K. Hellerstein.
According to the criminal Information filed today in Manhattan federal court:
Between approximately 1987 and 2010, KRAMER maintained an undeclared bank account at a Swiss private bank headquartered in Zurich, Switzerland (the “Swiss Bank”). With the assistance of others at the Swiss Bank, KRAMER took steps to conceal the existence of, and his interest in, the undeclared account. KRAMER and certain individuals at the Swiss Bank used the coded phrase “Hot Lips” to refer to KRAMER’s undeclared account at the Swiss Bank. Periodically, KRAMER met with a representative of the Swiss Bank (“Swiss Bank Representative-1”) in the United States to discuss KRAMER’s undeclared account at the Swiss Bank and to review statements related to the account. With the assistance of the Swiss Bank, KRAMER repatriated funds to the United States from his undeclared account in a manner designed to ensure that U.S. authorities did not discover the account, including by requesting and receiving checks from the account in amounts just under $10,000 each.
In approximately 2008, it became publicly known that the Swiss bank UBS AG (“UBS”) was being investigated by United States authorities for helping U.S. taxpayers maintain undeclared accounts. Around that time, KRAMER chose to maintain his undeclared account at the Swiss Bank after being assured by Swiss Bank Representative-1 that KRAMER’s undeclared account would remain safe at the Swiss Bank despite the UBS investigation. In approximately March of 2010, however, with the assistance of Swiss Bank Representative-1 and others at the Swiss Bank and an Israeli bank headquartered in Ramat Gan, Israel (the “Israeli Bank”), KRAMER transferred the remaining assets in his undeclared account at the Swiss Bank to a new undeclared account at the Israeli Bank. KRAMER maintained the new undeclared account at the Israeli Bank from 2010 to 2012.
From approximately 1987 through 2012, KRAMER filed false tax returns with the IRS that failed to report his interest in his undeclared accounts at the Swiss Bank and the Israeli Bank, and the income generated in these undeclared accounts, which had a high value of at least $1.1 million.
KRAMER, 83, of Del Ray Beach, Florida, faces a maximum sentence of eight years in prison. As part of his plea, KRAMER has agreed to cooperate with the Government and to pay a civil penalty of $588,042, along with back taxes. He is scheduled to be sentenced by U.S. District Judge Alvin K. Hellerstein on February 6, 2015.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding efforts of IRS-CI in the investigation, which he noted is ongoing. Mr. Bharara also thanked U.S. Department of Justice’s Tax Division for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Sarah E. Paul and Jason H. Cowley are in charge of the prosecution.
U.S. v. Bernard Kramer Information
Federal Judge Sentences Cambria County Drug Ring Leader to 20 Years in PrisonRead the Press Release
JOHNSTOWN, Pa. - A resident of Carrolltown, Pa., has been sentenced in federal court to 20 years in prison and 10 years supervised release on his conviction of violating various federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on George M. Lowmaster, 44. In addition, Lowmaster was ordered to forfeit six pieces of real estate, three vehicles and $691,082 to the United States.
According to information presented to the court, from Sept. 30, 2010, to May 9, 2011, Lowmaster conspired to manufacture and distribute more than 1,000 marijuana plants. From March 2008, to May 9, 2011, he conspired to commit money laundering to hide the proceeds from the sale of his organization's drug distribution. Also, on July 23, 2008, and Aug. 21, 2010, he distributed less than 500 grams of cocaine on each occasion.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the joint task force, headed by the Laurel Highlands Resident Agency of the Federal Bureau of Investigation, for the investigation leading to the successful prosecution of Lowmaster. Other agencies participating on the task force include the Internal Revenue Service-Criminal Investigation, Pennsylvania State Police, Pennsylvania Attorney General's Office, Cambria County District Attorney's Office, Carrolltown Police Department, Patton Police Department, Ebensburg Police Department, Portage Police Department and Paint Township Police Department.
Federal Inmate Charged with Possession of A Prison WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Margarito Morales-Oliva, age 35, formerly of Mexico, an inmate at the United States Penitentiary at Canaan, Pennsylvania, was charged on August 15, 2014 in a criminal Information with allegedly possessing a sharpened weapon commonly referred to as a “shank.”
The case was investigated by the FBI and the Special Investigation Section at USP-Canaan. Prosecution is assigned to Assistant United States Attorney John Gurganus.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this particular case, the maximum penalty under the federal statute is five years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Elkview Man Pleads Guilty to Distributing OxycodoneRead the Press Release
Charleston, W.Va. – United States Attorney Booth Goodwin announced that Shannon T. Murray, age 42, of Elkview, West Virginia pled guilty today in federal court in Charleston to aiding in the distribution of oxycodone. At the hearing, Murray admitted that in February of 2013, he transported oxycodone pills to a Kirkwood Drive residence where the pills were sold to a confidential informant working with law enforcement. Shortly after the drug deal, police executed a search warrant at the residence and recovered the money used by the confidential informant to buy the drugs from Murray, and also found additional oxycodone pills. Murray was in the residence when officers arrived and was arrested. Murray faces up to 20 years imprisonment and a $1,000,000.00 fine when he is sentenced on November 12, 2014.
The case was investigated by the Metropolitan Drug Enforcement Network Team (MDENT) and is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Delray Beach Residents Sentenced to Lengthy Prison Sentences in Multi-Million Dollar Bank Fraud Scheme Involving South Florida Investment PropertiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, announce that Darryl Burke, 50, and Vicki Garland, 50, both of Delray Beach, were sentenced yesterday by U.S. District Judge James I. Cohn for their roles in a multi-million dollar bank fraud scheme spanning from at least 2002 through 2013. Burke was sentenced to 30 years in prison and Garland was sentenced to 15 years in prison.
Previously, Burke and Garland were convicted on February 5, 2014, by a federal jury in Ft. Lauderdale of bank fraud and wire fraud conspiracy, after a two and half week trial. Burke was also convicted of four substantive counts of bank fraud, and Garland was convicted of three substantive counts of bank fraud. Each defendant was also sentenced to serve five years of supervised release and ordered to pay restitution.
Evidence at trial established that Burke and Garland created fictitious companies, including Next Level Development, and used an abandoned coin laundry in Delray Beach, to create an empire of fraudulently obtained investment properties. The abandoned coin laundry had a mailbox that served as the official address for the defendants, various fake companies, and other conspirators and fictitious individuals. Trial evidence established that Burke and Garland used fake documents, including false wage and tax documents, and false claims of employment and income, to obtain bank loans for investment properties in low-income neighborhoods. Garland was held out as the “President” of Next Level, and would sell properties to Burke, using his alias, “David Middleton.” The defendants would then enroll the properties in the U.S. Department of Housing and Urban Development (HUD), Section 8 voucher program, and obtain proceeds from HUD and from low-income tenants. The defendants then used false claims of status for Burke and also for the fake name, “David Middleton,” as total and permanent disabled veterans to avoid property taxes on various fraudulently obtained properties. Burke and his fake alias were neither veterans nor disabled. Trial evidence established that the loans and rental proceeds totaled millions of dollars.
Defendants used the proceeds of the fraud to acquire a multi-residence waterfront compound in Delray Beach, as well as Bentley, Mercedes and Range Rover automobiles, luxury goods, courtside season tickets for the Miami Heat, and to obtain large amounts of cash. Evidence further showed that Burke was convicted in 1997 in the Southern District of Florida of federal bank fraud charges, in relation to conduct that spanned the late 1980s and early 1990s.
Previously, four defendants were convicted in connection with the scheme to defraud multiple lenders. Three title agents, Osvaldo Sanchez, 38, Rafael Amador, 32, both of Miami, Devon Fraser, 31, of Sunrise, and real estate investor Chiquita Alexis, 46, of Boca Raton, all pled guilty to the same conspiracy involving Burke and Garland.
Mr. Ferrer commended the investigative efforts of USSS and the Federal Deposit Insurance Corporation, Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Evelyn B. Sheehan.
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.
Deleon Springs Felon Convicted for Possessing Firearms and AmmunitionRead the Press Release
Orlando, Florida – United States District Judge Roy B. Dalton, Jr. today found Marco Maurice Heath (36, Deleon Spring) guilty of being a convicted felon who unlawfully possessed multiple firearms and ammunition. Heath faces a maximum penalty of life in federal prison due to his prior felony convictions for crimes of violence and serious drug offenses. His sentencing hearing is scheduled for November 3, 2014. He was indicted on May 7, 2014.
According to evidence presented at the trial, on November 8, 2013, an investigator with the Volusia County Sheriff’s Office (VCSO) was driving to work when he saw Heath riding a bicycle toward him with a shotgun and another long gun lying across the handlebars of the bicycle. The investigator radioed the VCSO dispatcher for back-up assistance while he turned around to look for Heath. A short time later, Heath was stopped, but no longer had any guns with him. Deputies continued to search the neighborhood for the guns. Ultimately deputies arrived at a nearby residence occupied by Heath’s girlfriend. She gave consent for the officers to search her home, and in a bedroom officers found a shotgun and a semi-automatic rifle underneath one bed, and a backpack containing three handguns and ammunition underneath another bed. Following his arrest, Heath admitted that he had possessed the firearms and ammunition the officers found that morning. Heath has eight prior felony convictions, including a conviction for armed robbery and multiple convictions for selling cocaine.
This case was investigated by Volusia County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Bruce S. Ambrose.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Trevor Velinor, Acting Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.