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Thursday 26 June 2014
Former NYPD Detective Pleads Guilty to Conspiracy and Tax FraudRead the Press Release
Earlier today, Rafael Astacio, a former detective with the New York City Police Department, pleaded guilty in Central Islip federal court to conspiracy to commit interstate transportation of stolen property and filing a fraudulent tax return. When sentenced, Astacio faces up to eight years in prison, a forfeiture money judgment of $200,000, and a fine of up to $500,000.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Kathleen M. Rice, Nassau County District Attorney, George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Thomas C. Krumpter, Acting Commissioner, Nassau County Police Department (NCPD), Shantelle P. Kitchen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS), and William J. Bratton, Commissioner, New York City Police Department (NYPD).
“For three years, Astacio and his band of thieves invaded people’s homes and businesses and stole millions of dollars. What makes Astacio’s crimes even more disgraceful is that he committed them while he was a NYPD detective who took an oath to protect and serve our community,” stated United States Attorney Lynch. “Today’s plea demonstrates that no one is above the rule of law. I want to thank my law enforcement partners for their hard work and unwavering commitment to ensure that Astacio was brought to justice.”
According to the indictment, court filings,and statements at today’s proceeding, between 2009 and 2012, Astacio was a member of a burglary crew that committed approximately three dozen commercial burglaries and ten residential burglaries in the Eastern District of New York stealing approximately $10,000,000 in cash and property. The crew used traditional burglary tools, such as blow torches, crowbars, wire cutters, and sledge hammers, as well as modern technology, including cell phone jammers and police scanners, to commit those burglaries. In addition, they often conducted surveillance of their burglary victims to determine when the victims would be out of their homes and businesses. On at least one occasion, they even installed a tracking device on a victim’s car to assist in that endeavor.
On April 29, 2010, Astacio’s co-conspirators burglarized a business in Plainview, New York, entering that commercial establishment while Astacio and another co-conspirator monitored a police scanner and acted as lookouts. Astacio’s co-conspirators spent approximately three and a half hours in the business and stole more than 45,000 pairs of Under Armour, Hobie, and other sunglasses that were worth approximately $3,000,000. After the burglary, Astacio and his co-conspirators transported the stolen property across state lines and sold some of the sunglasses on the Internet. In another instance, Astacio and his crew stole approximately $2,000,000 in cash from a plastic surgeon’s office located in Nassau County.
The government’s case is being prosecuted by Assistant United States Attorney Christopher C. Caffarone and Special Assistant United States Attorney Rick Whelan.
The Defendant:
RAFAEL ASTACIO
Age: 41
Copiague, New York
E.D.N.Y. Docket No. 13-CR-640 (JFB)
Former Indian Casino Cashier Sentenced to 37 Months in Prison for Embezzlement and Failing to File A Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – Kimberly Dawn Logsdon, of Chickasha, Oklahoma, was sentenced today to 37 months in prison for embezzling from an Indian casino and failing to file a tax return, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
The Silver Buffalo Casino was an Indian gaming establishment in Anadarko, Oklahoma, operated by the Apache Tribe of Oklahoma. Kimberly Logsdon was employed as a cashier clerk at the casino from July 25, 2007, until her termination on December 3, 2008. During five days of trial testimony in December 2013, a jury heard evidence that from January of 2008 through November of 2008, Ms. Logsdon double-counted certain winning cashout vouchers presented by casino customers for payment and kept a total of $174,472.56. She duplicated payments by treating certain vouchers both as scanned by the computer system and as unscanned vouchers that were not entered into the casino’s computer system. The evidence also showed that she knowingly failed to file a federal income tax return for 2008, in spite of the fact that she and her husband had at least $144,800.00 in gross gambling winnings between May and December of 2008.
Today United States District Judge Timothy D. DeGiusti sentenced Ms. Logsdon to 37 months in prison, to be followed by two years of supervised release, and restitution of $174,472.56. The sentence was based in part on the court’s finding that Ms. Logsdon testified falsely at trial about what she was doing on video surveillance footage that showed incriminating hand movements.
The jury also convicted William Michael Logsdon of failing to file a tax return. His sentencing date has not yet been determined.
This case is the result of an investigation by the Bureau of Indian Affairs and IRS Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Scott E. Williams and Travis D. Smith.
Former Florida Resident Pleads Guilty to Attempted Sex Trafficking in EcuadorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Patrick R. Minga (50, formerly of Cape Coral) pleaded guilty yesterday to attempting to induce and facilitate, for his own financial gain, the travel of an individual from Brevard County, Florida, to Quito, Ecuador, so that the individual could engage in illicit sexual conduct with minor girls. Minga faces a maximum penalty of 30 years in federal prison. His sentencing hearing has been scheduled for November 20, 2014.
During the change of plea hearing, Minga admitted that he advertised, on Craigslist, a sex tourism business in Ecuador that could facilitate lodging, transportation, meals, and unlimited access to females for a fee. An undercover task force agent observed the ad and contacted Minga. Over the course of several months, Minga tried to induce and arrange the travel of the undercover agent from Florida to Quito, where Minga advised that he could provide sexual encounters with minors as young as 13 and 14 years of age.
On March 2, 2014, Minga traveled from Ecuador to the United States, where he was arrested by agents in Huntsville, Alabama. Minga will remain detained pending further proceedings.
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
It is another 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.
Former Employee of Local Fkg Oil Sentenced for Wire Fraud in A Scheme to Defraud EmployerRead the Press Release
Follow @SDILNewsKevin D. Dowell, 37, of St. Louis, Missouri, was sentenced to 366 days in prison, to be followed by three years of supervised release as a result of his conviction for wire fraud in a scheme to defraud and embezzle from the FKG Oil Company, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Additionally, Dowell was ordered to pay restitution totaling $113,984.
Dowell was the Manager of the Human Resources Department of FKG Oil Company in Belleville, Illinois. During the time period mid-2010 to April 2013, he falsified mileage expense reports, used a company credit card for personal expenses, and transferred funds electronically from the company’s bank account directly to his personal bank account in Missouri. Dowell fraudulently obtained the funds to support his relationship with an exotic dancer.
The fraud was reported to the Belleville Police Department and a full investigation was performed by a third party firm. At completion of the full investigation, the case was turned over to the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Falsifying expense reports is a crime. To report suspicious activity to the F.B.I. call (217) 522-9675 or email [email protected]. To report public corruption, call (877) 884-7633 or (877) U-TIP-OFF. To report health care fraud, call (888) 557-9503.
Former Delray Beach Resident Convicted in Third Case Involving Identity TheftRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Jeffrey Emil Groover, 53, formerly of Delray Beach, was convicted by a jury of all six counts with which he was charged. Specifically, Groover was convicted of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, three counts of bank fraud, in violation of Title 18, United States Code, Section 1344, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Sentencing is scheduled for September 3, 2014, before U.S. District Judge Dimitrouleas. At sentencing, Groover faces a maximum sentence of 20 years in prison for conspiracy to commit bank fraud, 20 years in prison for each count of bank fraud, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charges.
According to evidence presented at trial and court documents, Groover used the personal identifying information (PII) of an individual without her knowledge or consent to open a checking account and obtain a debit/VISA card at TD Bank. The defendant forged the name on the signature card for the account and, when asked for identification, produced a fraudulent, photo-switched Florida Driver's License with the individual’s correct information, but the defendant's photograph. Approximately one week after opening the account at TD Bank, the defendant again used the individual’s PII to open a checking account at PNC Bank. When asked to provide two forms of identification for the account, the defendant used the fraudulent debit/VISA card obtained from TD Bank, and the fraudulent, photo-switched Florida Driver's License. Groover directed the PNC banker to set up overdraft protection for the fraudulent checking account using the individual’s existing home equity line of credit. Between September 27, 2013 and September 30, 2013, the defendant and his co-conspirators withdrew and attempted to withdraw approximately $170,000 from the individual’s home equity line of credit by cashing a $20,000 check drawn directly on the line of credit.
In a separate case involving an identity theft tax refund fraud scheme, Groover was sentenced on April 18, 2014, before U.S. District Judge Robin Rosenbaum to 60 months in prison, followed by three years of supervised release, and was ordered to pay $350,373.86 in restitution. Groover previously pled guilty to the indictment in this case, which charged him with making and presenting false claims to the Internal Revenue Service, in violation of Title 18, United States Code, Section 287.
In sentencing the defendant to a sentence significantly above the sentencing guideline range in this previous case, the judge noted the defendant’s extensive criminal history, his arrest for a new identity theft crime while on bond awaiting sentencing, and the large number of victims who suffered, some for years, as a result of his repeated commission of identity theft crimes. The judge also noted that while serving a 46 month sentence for identity theft in 2004, the defendant provided testimony to the Senate Special Committee on Aging, in which he explained how easy it was to commit identity theft using the internet and how his 46 month sentence would cause him to never commit such crimes again. Since the 46 month sentence had not deterred Groover from committing new crimes, the judge imposed a 60 month sentence.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Adrienne Rabinowitz and Alexandra Hui.
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.
Former Cumberland Man Sentenced to 10 Years for Bank Fraud and Tax EvasionRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Walter
Scott Fox, 56, formerly of Cumberland, Maine, and now of Canton, Georgia, was sentenced in
U.S. District Court by Judge D. Brock Hornby to 10 years in prison and 3 years of supervised
release for bank fraud and tax evasion. He was also ordered to pay over $9,500,000 in
restitution. At the conclusion of the sentencing, he was remanded into the custody of the United
States Marshals Service. Fox pleaded guilty on February 4, 2014.According to court documents, from 1995 until 2011, Fox used his position as a loan
officer at Casco Northern Bank and at its successor, KeyBank, to originate or authorize over
$14,000,000 in fraudulent loans and lines of credit using the identities of four real individuals,
without their knowledge or consent. He used over $5,800,000 of the fraudulent proceeds to keep
the loans current and prevent the detection of his scheme. He used almost $8,200,000 for
personal expenses including to pay for his children’s educations and family vacations, and to
support his business, “The Boathouse.” Fox failed to report receiving any of this income to the
Internal Revenue Service (“IRS”) causing a tax loss of over $1,300,000 between 2006 and 2011.The scheme was discovered in 2012 when KeyBank denied an increase for one of the
credit lines because it did not fit the model for its community development loans. With no funds
available to make payments and keep the scheme afloat, all the fraudulent loans became
delinquent by August, 2012. Fox abruptly resigned his position at KeyBank on September 7,
2012 when a supervisor became concerned about the delinquent loans and made inquiries about
the status of his loan portfolio.
Judge Hornby observed that the sentence was needed to send a message, promote respect
for the law and provide just punishment because Fox used the proceeds of his fraud to fund a
lifestyle that most people cannot afford.
The case was investigated by the Federal Bureau of Investigation and IRS - Criminal
Investigations.Former Connecticut Resident Sentenced to Prison for Mortgage Fraud SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that GARI-MARK THOMAS, 39, of Michigan, formerly of Norwalk, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 12 months and one day of imprisonment, followed by three years of supervised release, for conspiring to defraud the Federal Housing Authority through a mortgage fraud scheme. THOMAS pleaded guilty to the charge on February 4, 2014.
According to court documents and statements made in court, in March 2008, THOMAS, while serving as a loan officer for Suntrust Mortgage, assisted his girlfriend in obtaining a residential real estate loan to purchase a property at 510 E. Main Street in Stratford by submitting fraudulent information to the lender and the Federal Housing Authority (FHA). The fraudulent information included a false claim that his girlfriend was employed with a tax and accounting company, false paystubs, false IRS tax forms and phony bank statements to make it appear that she had a bank account with assets in it, when in fact she had no such assets.
Based on the fraudulent loan documentation, the loan was issued by the lender and insured by the FHA. HOMAS’ girlfriend ultimately defaulted on the loan, causing a loss of $184,538.37 to the FHA.
Judge Bryant ordered THOMAS to pay full restitution.
This matter was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by the U.S. Attorney’s Office Financial Fraud and Public Corruption Unit.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]Former Board Member of National Charity Charged in $4 Million Fraud and Money Laundering SchemeRead the Press Release
PORTLAND, Ore. – Amanda Marshall, U. S. Attorney for the District of Oregon, today announced that William R. Peters, 63, of Glen Burnie, Maryland, a former member of the Board of Directors of National Relief Charities (NRC), has been charged with conspiring to defraud NRC of $4 million and conspiring to commit money laundering violations with the proceeds of the fraud scheme. Brian J. Brown, a former president of NRC, was charged with the same federal crimes in October 2013. Brown’s case is pending in federal court in Portland, Oregon.
The indictment alleges that in late 2005, when Brown stepped down as the president of NRC, a national charity dedicated to improving the quality of life for Native Americans, he established a nonprofit company called Charity One, Inc., dba American Indian Education Endowment Fund. Peters and Brown then allegedly induced NRC to fund Charity One, Inc. with $4 million from 2006 through 2009. Brown allegedly represented these funds would be used to fund educational scholarships for Native Americans. Peters allegedly used his position as a member of the Board of Directors of NRC to cause NRC to execute endowment agreements with Charity One, Inc. in which NRC gave Charity One, Inc. $1 million a year for four years. Peters and Brown allegedly used the entire $4 million for their personal benefit.
“Anyone who defrauds a charity for their personal gain should expect to be caught and prosecuted. This conduct harms the charity, its donors, and, most importantly, the intended recipients of the fraudulently diverted funds,” said U.S. Attorney Marshall.
This case is being investigated by the Federal Bureau of Investigation and the Criminal Investigation Division of the Internal Revenue Service. Assistant U.S. Attorney Seth D. Uram is handling the prosecution of the case.
Former Bank Employee in Crawford County Stole More Than $2.5 Million from BankRead the Press Release
WICHITA, KAN. – A former employee of a bank in Crawford County has pleaded guilty to stealing more than $2.5 million from the bank, U.S. Attorney Barry Grissom said.
Cynthia Bright, 55, Girard, Kan., pleaded guilty Wednesday to one count of bank fraud. In her plea, she admitted she stole the money over a period of 10 years while working as operations supervisor at Girard National Bank.
Bright used several different methods to steal the money. In some cases, she wrote checks on her own accounts and altered electronic bank records so the checks would clear but the money would not be taken out of her account. In other cases she removed paper checks and altered records to post checks to other accounts. She diverted funds from the bank’s accounts to her own accounts, and she wrote large counter checks to conceal losses.
Grissom commended the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.
She is set for sentencing Sept. 15. Both parties have agreed to recommend a sentence of 70 months in federal prison and an order of restitution for the full amount of the thefts.Former Augusta Minister Sentenced to More Than 12 Years in Prison for Check-Cashing SchemeRead the Press Release
AUGUSTA, GA – Jesse Jefferson Flournoy, II, 37, of Augusta, Georgia was sentenced earlier this month to 148 months in prison by United States District Court Judge J. Randal Hall for his role in a check-cashing scheme that involved cashing over 80 United States Treasury and University Bank checks for a total loss of $450,465.52. This sentencing followed a lengthy jury trial in July 2013, where Flournoy was convicted of one count of Conspiracy to Defraud the United States, thirteen counts of Theft of Public Money, and eight counts of Aggravated Identity Theft.
Evidence presented at trial and during sentencing showed that between September 2011 and January 2012, Flournoy played a vital role in a check-cashing scheme that involved cashing checks which were either generated as the result of filing a fraudulent tax return or were stolen from the United States mail before reaching the intended payee. Flournoy would obtain the checks from co-conspirators, forge the individual payees’ names on each check, create a bogus power of attorney form, in part by forging the individuals’ signatures, recruit an accomplice to actually cash the check, and then send money back to his co-conspirators after taking his “cut” from each check. In addition, the evidence showed a number of fraudulent tax refunds were electronically deposited directly into bank accounts controlled by Flournoy. The entire time Flournoy participated in this fraudulent scheme, he also served as the leader of the Transformation Empowerment Christian Center in Augusta, Georgia.
United States Attorney Edward J. Tarver said, “Schemes dealing with fraudulent tax refunds are not aimed at stealing from the ‘faceless victim’ of the government. The funds in the United States Treasury represent the money earned and paid by every American citizen. As such, this Office will continue to vigorously investigate and prosecute crimes involving theft from the American people.”
In addition to the ordered term of imprisonment, Flournoy was ordered to pay $450,465.52 in restitution. After Flournoy is released from prison, he will serve three years of supervised release. Regarding the length of the prison sentence, Mr. Tarver noted that parole has been abolished in the federal system.
FBI Special Agent Paul Kubala, IRS-CI Special Agent Roger Garland, and Secret Service agent Tom Norris conducted the investigation which led to the indictment. Assistant United States Attorney C. Troy Clark and former Assistant United States Attorney David M. Stewart prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Florence Couple Plead Guilty to Producing Child PornographyRead the Press Release
BIRMINGHAM -- A Florence couple pleaded guilty today in federal court to multiple charges that they exploited a minor child in their custody to produce child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.PATRICIA ALLANA AYERS, 34, and her husband, MATTHEW DAVID AYERS, 42, entered their guilty pleas before U.S. District Judge L. Scott Coogler on charges related to 53 pornographic images of the child produced between the summer of 2010 and January 2013.
Patricia Ayers pleaded guilty to 53 counts of producing child pornography, and Matthew Ayers pleaded guilty to 25 counts of production. Their sentencing dates have not been set.
The Ayers could face a maximum penalty of 30 years in prison and a $250,000 fine, per count, for producing child pornography.
The couple has remained in jail in Lauderdale County since early last year on state child pornography, rape and sexual abuse charges.
Anyone with information about the potential sexual exploitation of children should report it to law enforcement immediately. The National Center for Missing and Exploited Children operates the Cyber Tip Line in partnership with the FBI and other federal authorities. If you have information, call the tip line at 1-800-THE-LOST.
The FBI investigated this case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
Five Defendants Appear in Federal Court on Drugs and Firearms Charges After Police Seize in Excess of 26 Pounds of Methamphetamine and Five FirearmsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----- United States Attorney William N. Nettles announced today that a federal magistrate judge arraigned Rory Severin, age 45, William Scott Powell, age 40, Chad Edward Moore, age 42, Marie Higgins, age 36, and Angel Miranda Luna, age 24, on federal narcotics and firearms charges.
A federal grand jury has charged these individuals with conspiring to possess with the intent to distribute and to distribute in excess of 500 grams of a mixture or substance containing methamphetamine. Chad Edward Moore also has been charged with felon in possession of a firearm, and Powell, Moore, Higgins, and Miranda Luna have been charged with possessing firearms in furtherance of a drug trafficking charge.
The investigation culminated on two dates: April 22, 2014, and May 5, 2014. On April 22, 2014, law enforcement officers arrested Severin, Powell, Moore, and Higgins, and seized in excess of two pounds of methamphetamine and four firearms. On May 5, 2014, law enforcement officers conducted a traffic stop on a vehicle which Luna Miranda was driving in the Atlanta, Georgia, area. After arresting Luna Miranda, officers seized approximately 26 pounds of methamphetamine, $90,000 in cash, and a firearm Luna Miranda was using in his residence to protect the drugs and drug proceeds.
If convicted on the charges in the indictment, the defendants face 10 years to life imprisonment. The Department of Homeland Security/Homeland Security Investigations, the Douglasville, Georgia, Police Department, the Pickens County Sheriff’s Office, the South Carolina Law Enforcement Division, the Bureau of Alcohol, Tobacco, and Firearms, and the Oconee County Sheriff’s Office investigated the case. Andy Moorman with the U.S. Attorney=s Office will be prosecuting.#####
Final Defendant Sentenced in Dodge County Area Drug Trafficking OrganizationRead the Press Release
DUBLIN, GA – Dwight Eady, 31, of Milan, Georgia was sentenced earlier this month by Senior United States District Court Judge Dudley Bowen to 70 months in prison for his role in a cocaine trafficking organization operating out of Dodge, Telfair, and Laurens Counties, Georgia, and elsewhere. Eady was the twenty-first and final defendant to be sentenced for his role in the drug ring. A list of others convicted and sentenced in the case is included below.
Evidence presented during numerous guilty plea and sentencing hearings revealed that Nico Harswell, a co-defendant of Eady, supplied multi-kilogram quantities of cocaine to various individuals in the Telfair, Laurens, and Dodge County area between 2010 and 2012. Several federal wiretaps were obtained which helped identify the members of the drug conspiracy and led to the seizure of a significant amount of cocaine and over $60,000 in cash. Additionally, several vehicles were seized and forfeited.
United States Attorney Edward J. Tarver stated, “This case provides another example of the outstanding results achieved when federal and state law enforcements partner together to investigate and prosecute large-scale drug trafficking organizations. If you push poison in our communities, you can expect to spend years in a federal prison.”
The case was investigated by the DEA, the Oconee Drug Task Force, the Telfair County Sheriff’s Office, and the Laurens County Sheriff’s Office, with assistance from the Georgia State Patrol and the United States Marshal’s Service. Assistant United States Attorneys Charlie Bourne and Greg Gilluly prosecuted the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
The defendants convicted and sentenced in the case are:
Nico Harswell, 40, of Rentz, Georgia
210 months / 5years supervised release / $2500 fineRonald Harell, 37, of Helena, Georgia
188 months / 5 years supervised release / $2000 fineJames Austin, 31, of McRae, Georgia
151 months / 5 years supervised release / $1500 fineStephin White, 52, of McRae, Georgia
124 months / 5 years supervised release / $1500 fine / 40 hours community serviceDeandre Graham, 28, of McRae, Georgia
38 months / 5 years supervised release / $1000 fine / 40 hours community serviceKemo Pauldo, 35, of Dublin, Georgia
70 months / 5 years supervised release / $2000 fine / 40 hours community serviceMelvin Hughes, 34, of McRae, Georgia
168 months / 5 years supervised release / $2000 fineBrandon Woods, 23, of Dublin, Georgia
90 months / 5 years supervised release / $3000 fineJames Harswell, 33, of Dublin, Georgia
64 months / 5 years supervised release / $2000 fineShonta Burney, 39, of Rentz, Georgia
37 months / 5 years supervised release / $2000 fineKendya Hughes, 33, of McRae, Georgia
32 months / 1 year supervised release / $200 special assessmentCynthia Reynolds, 34, of Jacksonville, Georgia
18 months / 1 year supervised releaseJimmy Tucker, 43, of Laurens County, Georgia
30 months / 5 years supervised release / $1000 fine / 40 hours community serviceAntonio Smiley, 35, of Hinesville, Georgia
120 months / 5 years supervised release / $2000 fineJohnny Fabian, 60, of Ludowici, Georgia
45 months / 5 years supervised release for each count / $1000 fine / $200 special assessmentGary Duty, 39, of Dublin, Georgia
48 months / 1 year supervised release / $200 special assessmentTron Baker, 34, of Hinesville, Georgia
27 months / 5 years supervised release / $1500 fine / 40 hours community serviceRobert Nico Perry, 33, of Glenwood, Georgia
36 months / 1 year supervised releaseChad Mitchell, 33, of Eastman, Georgia
180 months / 5 years supervised release / $3500 fineGary Wesley, 40, of Helena, Georgia
57 months / 5 years supervised release / $1000 fineFelon in Possession of A Firearm Sentenced in Federal CourtRead the Press Release
MOBILE, Ala. – Nathan Edward Prim, 32, of Foley, was sentenced in federal court for his possession of a firearm after he had been convicted of a felony offense. Prim was also sentenced on a second count, which charged that he was illegally in possession of a firearm with an obliterated serial number. Prim had entered guilty pleas to both charges in March of 2014.
At the sentencing hearing on June 26, United States District Court Kristi Dubose heard testimony from a Mobile police officer about the facts surrounding Prim’s arrest. The officer testified that Prim attempted to pull the gun from his waistband when he physically restrained Prim and a second officer disarmed him. The judge imposed a sentence of 160 months imprisonment in Prim’s case. Prim will pay $200 in special assessments, and following his release from imprisonment, he will serve three years on supervised release.
The case was investigated by the Mobile Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted in the United States Attorney's Office by Assistant United States Attorney Gloria Bedwell.
Federal Jury Convicts A Metroplex Chiropractor and Former Union Representative on Health Care Fraud and Related ChargesRead the Press Release
FORT WORTH, Texas — Following a three-day trial before U.S. District Judge Reed C. O’Connor, a federal jury has convicted Dr. Abbas Zahedi of Carrolton, Texas, and Reginald Guy of Arlington, Texas, on all counts of a superseding indictment charging each with one count of conspiracy to commit health care fraud, five counts of health care fraud and four counts of aggravated identity theft. Following the verdicts, both defendants were remanded to the custody of the U.S. Marshal. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Zahedi, 49, a chiropractor, owned and operated DFW Rehab & Diagnostics (DFW) out of the office of Metroplex DFW Sports Rehab Center (Metroplex) in Arlington and later at a stand-alone location in Grand Prairie, Texas, until it closed in September 2012.
Guy, 44, worked at a factory in Arlington, and from approximately 2003 until 2009, he was a union representative. His employment was terminated in November 2009.
The government presented evidence at trial that from 2009 to 2012, Dr. Zahedi and Reginald Guy, along with four coconspirators, James Sterns, Tina Perkins, Donna Harris and Gregory Wattron, conspired to submit health insurance claims to Blue Cross Blue Shield of Texas (BCBS) and other insurers for services not rendered. Sterns, Perkins, Harris and Wattron have pleaded guilty to their respective roles in the conspiracy and are scheduled to be sentenced by Judge O’Connor on September 15, 2014.
Guy used as his role as a union representative at the factory to recruit and refer his co-workers to Metroplex, where, in exchange for monthly kickbacks, work excuse notes and a variety of prizes, they agreed to allow their insurance company to be billed for services they did not receive.
Sterns, 50, of DeSoto, Texas, owned and operated Metroplex. In early 2010, Sterns hired Guy, whose employment at had been terminated, to be the office manager of Metroplex. Guy served as Metroplex’s office manager from 2010 to mid-2011, shortly before the clinic closed. In March or April 2011, Dr. Zahedi hired Guy as a consultant for DFW at its Grand Prairie location. After Guy began working for Dr. Zahedi, Guy helped transfer patients and patient information from Metroplex to Dr. Zahedi at DFW, where the fraudulent referral and billing scheme continued.
Tina Perkins, 43, of Dallas, was responsible for submitting claims to insurance companies and also worked as the biller and office consultant for Dr. Zahedi at DFW. Perkins’ sister-in-law, Donna Harris, 43 of Haltom City, Texas, permitted Metroplex, in exchange for cash payments, to submit claims to BCBS for services purportedly performed by Dr. Zahedi and Wattron, when in fact she received no treatment. In early 2011, Dr. Zahedi hired Harris to be the office manager at DFW’s location in Grand Prairie. As such, she continued to allow Dr. Zahedi to submit claims under her name to BCBS for services that were not performed. Harris also permitted Dr. Zahedi to submit claims to BCBS for Harris’ immediate and extended family members for services they did not receive. Wattron, 56, of Grapevine, Texas, was an occupational therapist at Metroplex from approximately 2008 until July 2011 and at DFW from June 2010 through August 2011. Wattron agreed to allow Sterns and Dr. Zahedi bill insurance companies for occupational therapy that he did not perform.
Dr. Zahedi and Guy face a maximum statutory penalty of 10 years in federal prison and a $250,000 fine for the conspiracy count and each of the substantive health care fraud counts. Each count of aggravated identity theft carries a maximum statutory penalty of two years. They are scheduled to be sentenced on November 17, 2014.
The FBI and the Office of Personnel Management - Office of Inspector General investigated. Assistant U.S. Attorney Nancy Larson and Special Assistant U.S. Attorney Douglas Brasher are prosecuting the case.
Federal Inmate Convicted of AssaultRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
CLARKSBURG, WV – Edward C. Crow, age 44, an inmate at the United States Penitentiary in Hazelton, West Virginia, was convicted this week for the assault of a correctional officer after a two day federal jury trial before U.S. District Judge Irene M. Keeley.
United States Attorney William J. Ihlenfeld, II, for the Northern District of West Virginia made the announcement.
Crow was convicted by a federal jury this week on one count of assaulting a correctional officer resulting in bodily injury; one count of assault with a dangerous weapon with intent to do bodily harm; and one count of possession of a weapon.Crow was found by the jury to have used a spear that he had manufactured himself to stab a correctional officer through the food slot on his cell door. The officer suffered a puncture wound to his lower abdomen and received medical treatment at a local hospital.
Crow, who is in custody pending sentencing, is a career offender and faces an additional twenty years in prison.This case was prosecuted by Assistant United States Attorney Brandon S. Flower and was investigated by the Special Investigative Services Staff at USP Hazelton.
Elmira Man Pleads Guilty to Child Pornography ChargeRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Chad Dolaway, 23, of Pine City, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci, Jr., to receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison and a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Marisa J. Miller, who handled the case, stated that the defendant came to the attention of law enforcement in 2011 when undercover agents from both the Federal Bureau of Investigation and Homeland Security Investigations downloaded child pornography from Dolaway through a peer to peer file sharing network. The defendant received child pornography and maintaining the images on a computer that he owned. Some of the images portrayed prepubescent children and children engaged in violent conduct.
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 plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and the Chemung County Sheriff’s Office, under the direction of Sheriff Christopher Moss.
Sentencing is scheduled for September 25th, at 3:30 p.m. before Judge Geraci.El Paso, Texas Man Sentenced for Federal Methamphetamine Trafficking Conviction Defendant Participated in Conspiracy to Sell Seven Pounds of Methamphetamine to Undercover DEA AgentsRead the Press Release
ALBUQUERQUE – Jose Alberto Hernandez, 28, of El Paso, TX, was sentenced this morning in federal court in Las Cruces, N.M., to 46 months in federal prison followed by two years of supervised release for his methamphetamine trafficking conviction.
Hernandez arrested on Aug. 7, 2013, on a criminal complaint charging him with participating in a conspiracy to distribute methamphetamine in Doña Ana County, N.M., in Aug. 2013. Subsequently, Hernandez and seven others were indicted and charged with conspiracy to distribute methamphetamine in Doña Ana County from May 2013 through Aug. 2013.
According to court filings, Hernandez met with undercover DEA agents in El Paso on Aug. 1, 2013, to deliver three pounds of methamphetamine after a co-conspirator in Guadalajara, Mexico, negotiated the deal with one of the undercover agents. During the course of the conspiracy, Hernandez and his co-conspirators sold an aggregate of seven pounds of methamphetamine to the undercover agents.
On Feb. 5, 2014, Hernandez pled guilty to a felony information charging him with participation in a methamphetamine conspiracy, and admitted agreeing with a coconspirator to sell three pounds of methamphetamine to the undercover agents in the parking lot of an apartment complex in El Paso.Two of Hernandez’s co-defendants, who reside in El Paso, also were arrested on Aug. 7, 2013. Fernando Perches, 31, pled guilty to the indictment on Jan. 14, 2014, while Gabriel Garcia-Moreno, 24, entered a similar guilty plea on Feb. 26, 2014. Both are detained pending sentencing hearings and each faces a term of not less than ten years in prison to a maximum of life imprisonment.
Co-defendant Sergio Omar Miranda, 25, a U.S. citizen who resides in Juarez, Chihuahua, Mexico, was arrested on Sept. 20, 2013. Miranda pled guilty on Feb. 14, 2014, to a felony information charging a methamphetamine trafficking conspiracy. He is detained pending sentencing when he faces a maximum penalty of 20 years in prison.
Co-defendant Jose R. Rodriguez-Fernandez, 22, of Canutillo, Texas, was arrested on Dec. 16, 2013. Rodriguez-Fernandez pled guilty on May 19, 2014, to a felony information charging him with participating in a methamphetamine trafficking conspiracy, and faces a maximum penalty of 20 years in prison when he is sentenced.
Co-defendant Evaristo Del Toro Von Ludwitz, 31, a Mexican national from Guadalajara, Mexico, was arrested on May 14, 2014, in McAllen, Texas, and transferred to New Mexico on June 11, 2014. He has pleaded not guilty to the charge in the indictment. Hector Zamora, a Mexican national from Guadalajara, Mexico, and Argelia Zavala-Torres, 30, of El Paso, have yet to be arrested and are considered fugitives. Charges in indictments are merely accusations and these defendants are presumed innocent unless proven guilty in a court of law.
This case was investigated by the Las Cruces office of the DEA and is being prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Doctors Indicted for Health Care FraudRead the Press Release
Allegedly Filed Over $2.3 Million in Fraudulent Insurance Claims
Greenbelt, Maryland - A federal grand jury has indicted two doctors, Paramjit Singh Ajrawat, age 60, and his wife, Sukhveen Kaur Ajrawat, age 56, both of Potomac, Maryland, on charges of health care fraud in connection with the pain clinic they owned and operated. The indictment was returned on June 24, 2014.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Special Agent in Charge Drew Grimm, Office of Personnel Management, Office of Inspector General; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Bill Jones, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Special Agent in Charge Paul Bowman of the U.S. Postal Service, Office of Inspector General.
According to the indictment, P. Ajrawat was a licensed physician in Maryland who specialized in interventional pain management. S. Ajrawat was a licensed psychiatrist in Maryland. The Ajrawats owned and operated Washington Pain Management Center (WPMC) located in Greenbelt.
The 16-count indictment alleges that from at least August 2008 through May 2014, the Ajrawats engaged in a scheme to defraud federal health benefit programs including: Medicare, Medicaid, TRICARE, Federal Employees Health Benefits Program and the Office of Workers’ Compensation Programs. Specifically, the indictment alleges that the Ajrawats filed claims for procedures that were not performed (rather, less expensive procedures were performed and then the Ajrawats falsely billed for procedures that provided higher reimbursements), or were not performed in compliance with the requirements for reimbursement.
For example the indictment alleges that the Ajrwats submitted claims that P. Ajrawat had performed an epidural, when instead P. Ajrawat had performed less invasive injections using lidocaine, which was not indicated for epidural use. The Ajrawats allegedly falsely documented the use of an ultrasound machine to direct needle placement in certain patient files and caused the alteration or destruction of patient files to conceal the scheme.
The indictment also seeks the forfeiture of $2,329,109, believed to be the proceeds of the scheme.
The defendants face a maximum sentence of 10 years in prison for each count of health care fraud. An initial appearance has not yet been scheduled.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised DCIS, HHS-Office of Inspector General, OPM-Office of Inspector General, FBI, U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Service-Office of Inspector General for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kelly O. Hayes, who is prosecuting the case.
District Man Pleads Guilty to Child Pornography and Child Sexual Abuse ChargesMore Than 700 Videos and 100 Images of Child Pornography Seized in Search of Defendant’s ResidenceRead the Press Release
WASHINGTON – Cristian Gutierrez, 22, of Washington, D.C., pled guilty today to child pornography and child sexual abuse charges, announced U.S. Attorney Ronald C. Machen Jr., Clark Settles, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI), Washington, D.C., and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Gutierrez pled guilty in the U.S. District Court for the District of Columbia to one count of possession of child pornography and two counts of second-degree child sexual abuse. He is to be sentenced Sept. 22, 2014 by the Honorable Senior Judge Gladys Kessler. The child pornography charge carries a statutory maximum of 20 years in prison. Each count of second-degree child sexual abuse carries a statutory maximum of 10 years of incarceration. The charges also carry potential financial penalties. Gutierrez also must register for at least 25 years as a sex offender.
According to the government’s evidence, a law enforcement investigation determined that, between May 4, 2013 and Aug. 13, 2013, Gutierrez received and possessed child pornography on his personal laptop computer and other electronic storage devices at his residence. On various dates during that time-frame, he downloaded numerous images and videos depicting child pornography to his computer using a peer-to-peer file sharing program and made those files available for downloading by other users of the program.
On Aug. 16, 2013, pursuant to a warrant, law enforcement searched the defendant’s residence. Law enforcement located a total of more than 700 videos and more than 100 images depicting child pornography on the laptop and other electronic storage devices. Gutierrez initially denied possessing child pornography, but eventually admitted that he downloaded the suspected child pornography files that were on the laptop computer.
The search led to evidence of the defendant’s other conduct. An investigation revealed that between April and August of 2013, on at least five occasions, Gutierrez touched the genitals on top of the clothing of two 12-year-old boys.
In announcing the plea, U.S. Attorney Machen, Special Agent in Charge Settles, and Chief Lanier praised the work of the HSI Special Agents who investigated the case and expressed appreciation for the assistance of MPD detectives. They also commended the efforts of Assistant U.S. Attorney Cassidy Kesler Pinegar, who is prosecuting the case.
14-151Disbarred Attorney Sentenced for Stealing Client FundsRead the Press Release
ATLANTA - Thomas W. Dickson has been sentenced for stealing over $300,000 from his law firm’s clients.
“When Dickson stole over $300,000 of his clients’ money, he violated the law,” said United States Attorney Sally Quillian Yates.
According to United States Attorney Yates, the charges and other information presented in court: In December 2008, while employed with a large Atlanta, Ga., law firm, Dickson was retained by Tenants In Common (TIC), owners of commercial real estate purchased through DBSI Inc., an Idaho based company. DBSI sold TIC investments or fractional ownership interests in commercial real estate to investors across the country. In November 2008, DBSI filed bankruptcy and many of the investors lost their life savings. In December 2008, several TIC property owners retained Dickson to represent their interests in the bankruptcy action. In 2009, Dickson encouraged TIC owners to transfer rents and other income into his law firm’s trust account.
Between February 24, 2010, and January 6, 2012, Dickson fraudulently directed his law firm’s accounting department to unlawfully transfer over $300,000 from the law firm’s trust account to a checking account controlled by Dickson and his wife. Dickson led the firm’s accounting department to believe that the funds were being transferred on behalf of TIC clients to pay legitimate third party expenses. In March 2013, Dickson was disbarred by the Georgia State Bar.
Dickson, 53, of Boulder, Colo., has been sentenced by United States District Judge Willis B. Hunt, Jr., to 12 months and one day in prison to be followed by three years of supervised release, with the first six months of supervised release to be served in home confinement, 120 hours of community service, and ordered to pay restitution in the amount of $175,951.98. Dickson pled guilty to wire fraud on August 14, 2013.This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Jeffrey A. Brown prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Director of Domestic Violence Shelter Pleads Guilty to Stealing FundsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the director of a shelter for victims of domestic violence in Marshall, Mo., pleaded guilty in federal court today to embezzling from the shelter and to making false statements on federal grant requests.
Deborah L. Wallace, 50, of Marshall, waived her right to a grand jury and pleaded guilty before U.S. District Judge Gary A. Fenner to a federal information that charges her with one count of stealing government property and one count of making false claims for reimbursement under a federal grant.
Wallace was the executive director of the Lighthouse Shelter, Inc. By pleading guilty today, Wallace admitted that she embezzled money from Lighthouse, including money obtained from grants funded by the U.S. Department of Justice. Over a five-year period from 2008 through 2013, Wallace used Lighthouse credit cards to pay personal expenses. Wallace also made unauthorized payments on personal credit cards and her personal cell phone from the Lighthouse bank account.
In her position as executive director, Wallace certified that the grant applications submitted to the Missouri Department of Public Safety for federal grants – the Victims of Crime Act and the State Services for Victims Fund – were true and accurate statements in support of the grant applications. Wallace also certified that the monthly invoices made in support of disbursement of the grant monies were true and accurate. Wallace admitted today that she submitted fraudulent monthly invoices. For example, she falsely claimed that employees who actually performed other duties were working in positions funded under the grants.
The government and Wallace do not agree on the amount of the loss from the fraud scheme. If they are unable to agree to a loss figure by the time of Wallace’s sentencing hearing, the court will decide the matter by a preponderance of the evidence. Under the terms of today’s plea agreement, Wallace must pay restitution to Lighthouse for the total amount of the loss. Wallace also must pay the government a money judgment representing the amount of Lighthouse funds she obtained by fraud or for her own personal benefit as a result of her criminal violation.
Under federal statutes, Wallace is subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI and the U.S. Department of Justice Office of the Inspector General.Defendant Sentenced on Federal Fraud ChargesRead the Press Release
United States Attorney Kenyen Brown announces that James Lee Collins, Jr. was sentenced on June 25th in Federal Court after pleading guilty to conspiracy to pass and utter United States treasury checks with falsely made and forged endorsements and signatures. The scheme primarily involved stolen or fraudulent federal tax refund checks. Collins received a sentence of 46 months imprisonment, with 3 years of supervised release to follow. Collins was also ordered to pay over $800,000 in restitution.
The investigation was conducted by the United States Secret Service, the Internal Revenue Service, the United States Postal Inspection Service and the South Alabama Financial Crimes Task Force.
“The prison time received by Mr. Collins should serve as a strong warning that tough punishment awaits those who embark on a similar criminal path,” stated Veronica F. Hyman-Pillot, IRS Criminal Investigation Special Agent in Charge. “IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”
Assistant United States Attorney Daryl Atchison handled the prosecution of the case on behalf of the United States.
Defendant Sentenced on Federal Firearms ChargeRead the Press Release
United States Attorney Kenyen Brown announces that Keith Kidd was sentenced today in Federal Court after pleading guilty to being a felon in possession of a firearm. Kidd received a sentence of 18 months imprisonment, with 3 years of supervised release to follow. Kidd was taken into custody immediately after the hearing to begin serving his sentence.
The investigation was conducted by the Daphne Police Department. Assistant United States Attorney Daryl Atchison handled the prosecution of the case on behalf of the United States.
Defendant Sentenced on Federal Drug ChargesRead the Press Release
United States Attorney Kenyen Brown announces that Cecil R. Rice, Jr. was sentenced today in Federal Court after pleading guilty to possession with intent to distribute marijuana. Rice received a sentence of 46 months imprisonment, with 3 years of supervised release to follow.
The investigation was conducted by Homeland Security Investigations with the assistance of the Baldwin County Sheriff’s Office. Assistant United States Attorney Daryl Atchison handled the prosecution of the case on behalf of the United States.
Colorado Man Pleads Guilty to Federal Cocaine Trafficking ChargeRead the Press Release
ALBUQUERQUE – Daniel Enrique Padilla-Esparza, 36, of Thornton, Colo., pleaded guilty today in federal court in Las Cruces, N.M., to an indictment charging him with possession of more than five kilograms of cocaine with intent to distribute.
Padilla-Esparza was arrested on Sept. 13, 2013, on a criminal complaint after U.S. Border Patrol agents found more than 35 pounds (almost 16 kilograms) of cocaine in his vehicle during a traffic stop north of the U.S. Border Patrol checkpoint on Interstate 25 in Doña Ana County, N.M. The cocaine was discovered in a concealed compartment above the vehicle’s gas tank. Padilla-Esparza subsequently was indicted on the same charge.
On June 11, 2014, the court denied Padilla-Esparza’s motion to suppress the cocaine and other evidence seized from his vehicle. During today’s hearing, Padilla-Esparza entered a guilty plea to the indictment under a plea agreement that permits him to appeal from the order denying his motion to suppress the cocaine.
In entering his guilty plea, Padilla-Esparza admitted that on Sept. 13, 2013, while he was driving from El Paso, Texas, to Colorado on Interstate 25, he knew he had cocaine hidden in a secret compartment in his vehicle. Padilla-Esparza further admitted knowing that the drugs had been secreted in the compartment while he was in El Paso and Juarez, Mexico. Padilla-Esparza expected to be paid $4,000.00 form transporting the cocaine to Colorado.
Padilla-Esparza has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Padilla-Esparza faces a mandatory minimum of ten years in prison to a maximum of life imprisonment.
This case was investigated by the Las Cruces office of Homeland Security Investigations, U.S. Customs and Border Protection and the U.S. Border Patrol. Assistant U.S. Attorney Anna R. Wright of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Colombian Man Pleads Guilty to Importation of Heroin Through the Orlando International AirportRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III, announces that William Paez Rubiano (40, Colombia) pleaded guilty to an Indictment charging him with importing heroin into the United States from Colombia. He also pleaded guilty to possession of heroin with intent to distribute in the United States. Paez Rubiano faces a maximum sentence of 20 years in federal prison for each count, and a fine of up to $2,000,000. He is currently detained pending his sentencing hearing on September 15, 2014.
Paez Rubiano admitted that, on May 8, 2014, he arrived in Orlando from Bogota, Colombia aboard JetBlue Airways Flight 1784, traveling with his wife and their seven-year-old daughter. Upon arrival at the Orlando International Airport, a U.S. Customs and Border Protection (CBP) K-9 Officer conducted a canine sweep of Paez Rubiano and his family, including their carry-on luggage. The canine positively alerted to the odor of narcotics emanating from the carry-on luggage. Paez Rubiano’s carry-on luggage was examined and the officers discovered, concealed inside the linings of the luggage, a brown powder substance that yielded positive results to the presence of heroin. Paez Rubiano accepted responsibility for the drugs, which were above three kilograms of heroin.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Cellular Phone and Cosmetics Salewoman Convicted of Selling Synthetic DrugsRead the Press Release
A woman who sold synthetic drugs commonly called “K2” and “bath salts” was convicted by a jury today after a 3-day trial in federal court in Cedar Rapids.
Mary Ramos, age 52, from Evansdale, Iowa, was convicted of distributing and possessing with intent to distribute a synthetic cannabinoid called XLR-11, and distributing and possessing with intent to distribute a synthetic cathinone called Alpha-PVP. Ramos was acquitted of a charge of possessing a firearm in furtherance of the drug crime. The verdict was returned this afternoon following about 6 hours of jury deliberations.
The evidence at trial showed that Ramos sold a drug called XLR-11 under various brand names including “Mr. Nice Guy,” “Mr. Happy,” “Diablo,” “Insane,” “Hydro,” “LOL,” and “777.” XLR-11 is a synthetic cannabinoid similar to THC, but the substances were labeled as incense or potpourri. Ramos also sold a drug called Alpha-PVP under the brand name “Blue.” Alpha-PVP is a form of synthetic cathinone, which is a stimulant similar to methamphetamine or cocaine. The “Blue” substance was labeled as scouring powder, and sold by Ramos for $50 per jar, despite the fact that Alpha-PVP has no cleaning properties. Each jar of “Blue” contained less than half a gram of powder.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Ramos was taken into custody by the United States Marshal after the verdicts were returned and will remain in custody pending sentencing. Ramos faces a possible maximum sentence of 80 years’ imprisonment, $4,000,000 in fines, $400 in special assessments, and a lifetime of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Dan Chatham and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services; the Tri-County Drug Enforcement Task Force; the Federal Bureau of Investigation; the Department of Homeland Security; the Internal Revenue Service; and the Iowa Division of Criminal Investigation, Intelligence Division.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-2034-LRR.Carbon Cliff Man Sentenced for Sexual Exploitation of MinorsRead the Press Release
Rock Island, Ill. — A Rock Island county man, Daniel William Becker, Jr., 22, of Carbon Cliff, Ill., was sentenced today for sexual exploitation of minors and possession of child pornography, as announced by U.S. Attorney Jim Lewis, Central District of Illinois. U.S. District Judge Sara Darrow ordered Becker to serve 293 months (24 years, 5 months) in federal prison followed by 20 years of supervised release after his release from prison. Judge Darrow also ordered restitution to victims in the case; however, the final amount of restitution will be determined at a hearing scheduled for Sept. 18, 2014. Judge Darrow also ordered the forfeiture of Becker’s digital devices and his residence in Carbon Cliff.
On Jan. 24, 2014, Becker entered pleas of guilty to sexual exploitation of children and possession of child pornography. According to court documents and evidence presented by the government during court hearings, Becker blackmailed minor females via online social networking websites to send him photographs and videos of the girls engaged in sexually explicit acts. Further, Becker threatened the girls by informing them that he would publicly post compromising photographs of the girls online unless the girls produced and sent additional photographs to him.
Becker has remained in the custody of the U.S. Marshals Service since his arrest in March 2013.
Assistant U.S. Attorney Kirk W. Schuler prosecuted the case. The charges were investigated by the U.S. Secret Service’s Quad Cities Cyber-Crime Unit and the Moline Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Bergen County, N.J., Man Admits Receiving Images of Child Sexual Abuse over the InternetRead the Press Release
TRENTON, N.J. - A Bergen County, N.J., man admitted today that he downloaded images and videos depicting child sexual abuse on a computer at his parents’ house, U.S. Attorney Paul J. Fishman announced.
Joshua Babilonia, 24, of Fair Lawn, N.J., pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to an information charging him with one count of receiving images of child sex abuse over the Internet.
According to documents filed in this case and statements made in court:
Special agents of the U.S. Department of Immigration and Customs Enforcement, Homeland Security Investigations (ICE HSI) executed a search warrant on Sept. 13, 2012, at the Fair Lawn residence of Babilonia’s parents. Agents seized digital evidence that contained more than 600 images and a large number of videos depicting child sexual abuse, including material that involved prepubescent minors and portrayed sadistic or masochistic conduct. The evidence seized included three files previously downloaded from Babilonia by law enforcement agents working in an undercover capacity on a peer-to-peer network.
During today’s guilty plea proceeding, Babilonia admitted he was a member of the online network between January 2011 and September 2012, and searched for and downloaded images of child sexual abuse. He also admitted that his files were viewable and downloadable by others on the network.
Babilonia faces a mandatory minimum penalty of five years in prison, and a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is currently scheduled for Oct. 15, 2014. Babilonia will also be required to register as a sex offender.
U.S. Attorney Fishman credited special agents of ICE HSI, under the direction of Special Agent in Charge Andrew M. McLees in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle M. Corcione of the U.S. Attorney's Office General Crimes Unit in Newark.
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Defense counsel: Adolph Galluccio Esq., Totowa, N.J.
Babilonia, Joshua Information
Ball Cap Bandit Sentenced to Seven Years in Prison for Eleven Bank RobberiesRead the Press Release
HUNTSVILLE -- U.S. District Judge Virginia Emerson Hopkins today sentenced the Ball Cap Bandit to seven years and three months in prison for his string of 11 bank robberies in 2012 and 2013, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
CEDRICK LAMOND HICKS, 33, of Huntsville, was dubbed the Ball Cap Bandit because he often wore such a cap during his crime spree. He pleaded guilty in December to the 11 bank robberies, 10 of which were in Alabama. One of the robberies was in Tennessee. Along with the prison sentence, the judge ordered Hicks to pay a total of $63,048 in restitution to the banks.
"Bank robbery is an extremely serious offense, not only because of the danger to human life that is involved but also because of the debilitating fear it creates for the victims," the government argued in a court filing opposing a defense motion for a downward variance from the federal sentencing guidelines range of 108 to 135 months in prison. "It is immaterial to many victims of bank robberies whether the perpetrator had a gun, brandished something that appeared to be a gun or simply stated he had a gun," the government said.
The court filing quotes several victims of Hicks' robberies including one who said it is still hard for her to do her job because she remains "paranoid when people walk into the bank that I don't recognize." Another victim said the effects of the robbery do not end on the day of the robbery. "Having a gun pulled on you is terrifying," she said. She has been diagnosed with Post Traumatic Stress Disorder and Acute Stress Disorder because of the crime, according to the government document.
The dates, locations and amount of money stolen in the robberies Hicks pleaded guilty to are as follows:- Feb. 22, 2012, Regions Bank, Madison Street, Huntsville, $2,870.
- March 23, 2012, First Jackson Bank, Sutton Road, Huntsville, $1,894.
- April 30, 2012, Renasant Bank, U.S. 72 West, Madison, $3,500.
- Aug. 2, 2012, Peoples Bank, U.S. 431 South, Guntersville, $890.
- Aug. 8, 2012, Traditions Bank, Alabama 67 South, Decatur, $7,243.
- Sept. 19, 2012, First National Bank of Pulaski, South First Street, Pulaski, Tenn., $23,067.
- Nov. 27, 2012, Regions Banks, Lee Street, Rogersville, $8,009.
- Jan. 7, 2013, Peoples Trust Bank, Military Street South, Hamilton, $9,000.
- March 6, 2013, ServisFirst Bank, Meridian Street, Huntsville, $6,575.
- Sept. 18, 2012, Cadence Bank, U.S. 431, Albertville, no money taken.
- Nov. 26, 2012, Traditions Bank, Second Avenue NW, Cullman, no money taken.
The FBI investigated the case. Assistant U.S. Attorney Mary Stuart Burrell of the Northern District of Alabama prosecuted the case.
Atlanta Man Who Impersonated A DEA Agent Pleads Guilty to Charges Related to Prescription Fraud SchemeRead the Press Release
ATLANTA - Jason Elledge, who schemed to obtain controlled substances from local pharmacies, has pleaded guilty to impersonating a federal officer, making false statements to law enforcement, and attempting to obtain fraudulent prescriptions.
“Elledge victimized several doctors with his prescription fraud scheme,” said United States Attorney Sally Quillian Yates. “He used the doctors’ identities to call in fraudulent prescriptions and then, by pretending to be a DEA agent, extracted information from the doctors that he then used to avoid detection by law enforcement. Despite Elledge’s efforts to hide his crimes, today he answered for them.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “DEA is fully committed to tirelessly pursuing those who knowingly break the law by victimizing healthcare professionals with prescription fraud schemes. Mr. Elledge’s criminal actions of prescription drug fraud, impersonating a federal officer and making false statements ultimately led to his demise. This successful investigation was built upon the collaborative efforts of a multitude of law enforcement agencies.”
According to United States Attorney Yates, the charges and other information presented in court: From January 2013 through November 2013, Elledge engaged in a scheme to illegally obtain controlled substances from local pharmacies and avoid detection by law enforcement. First, Elledge selected certain Atlanta, Ga., area doctors to target. Using those doctors’ identities, Elledge called in prescriptions to local pharmacies using various aliases as patient names. The prescriptions typically would consist of 120 tablets of Lortab 10/500mg or Norco 10/325mg, both Schedule III controlled substances, and other non-narcotic drugs. Elledge included non-narcotics in the prescriptions to avoid raising suspicion with the pharmacists that the prescriptions were fraudulent.
Elledge then called the offices of the doctors whom he had targeted and identified himself as DEA agent ‘Alan Velez’ or ‘Jason McDonald.’ He explained to the doctors’ staff that unknown individuals were using the doctors’ identities to call in fraudulent prescriptions to area pharmacies. Elledge claimed that he was investigating the fraudulent prescriptions and needed ‘real time’ information from the doctors’ staff about calls from pharmacies seeking to verify prescriptions. To that end, he instructed the doctors’ staff to contact him whenever they received calls from pharmacies seeking to verify prescriptions for individuals who were not patients of the doctors. Elledge told the doctors’ staff that having this information would allow him to send a member of his team to the pharmacies to arrest the individual(s) who arrived to pick up the fraudulent prescriptions.
In reality, when the doctors’ staff contacted Elledge to report a verification call from a pharmacy about a fraudulent prescription and the prescription was one Elledge had called in, he knew to not go to that pharmacy to pick up that prescription because the pharmacy knew the prescription was fraudulent. Attempting to pick up a prescription that the pharmacy had verified as fraudulent exposed Elledge to the risk of encountering law enforcement.Several of the doctors’ offices Elledge targeted complied with his instructions because they initially believed Elledge was in fact a real DEA agent.
As part of this scheme, on August 1, 2013, Elledge attempted to pick up a fraudulent prescription for 120 tablets of Norco 10/325mg in the name of ‘Kenneth Mayes’ from a Target pharmacy in East Point, Ga. On November 5, 2013, Elledge attempted to pick up a fraudulent prescription for 120 tablets of Lortab 10/500mg in the name of ‘John Coventa’ from a Walgreens pharmacy in Conyers, Ga. On November 7, 2013, Elledge attempted to pick up a fraudulent prescription for 120 tablets of Norco 10/325mg in the name of ‘Sam(uel) Garcia’ from the Atlantic Station Target pharmacy.
On November 7, 2013, when DEA agents made contact with Elledge at the Atlantic Station Target pharmacy, he claimed that another individual, J.L.K., called in the fraudulent prescriptions for Lortab and Norco tablets to various area pharmacies using aliases; J.L.K. would direct him to visit the pharmacies J.L.K. contacted and pick up the fraudulent prescriptions; and Elledge would give 100 of the 120 Lortab and Norco tablets from each fraudulent prescription that he picked up to J.L.K., who would often barter the Lortab and Norco tablets for Oxycodone tablets. Elledge later admitted to DEA agents that these statements were false and that J.L.K. was not involved in the scheme.
On March 18, 2014, Elledge, 40, of Atlanta, Ga., was indicted by a federal grand jury on one count of impersonating a federal officer, one count of making false statements to law enforcement, and three counts of attempting to obtain prescriptions by fraud.
The sentencing hearing is scheduled for September 4, 2014, at 10:30 a.m. before United States District Judge Charles A. Pannell Jr.,
This case is being investigated by the Drug Enforcement Administration.
Special Assistant United States Attorney DeLana M. Jones is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.com.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Ambulance Company Manager Sentenced to Five Years for Role in Medicare Fraud ConspiracyRead the Press Release
PHILADELPHIA – Mikhail Vasserman, 51, of Philadelphia, PA., was sentenced today to five years in prison for his role in a health care fraud scheme involving Penn Choice Ambulance Inc., operating from Huntingdon Valley, PA and Camp Hill, PA. Vasserman pleaded guilty on October 21, 2013 to conspiracy to commit health care fraud, false statements relating to health care matters, and paying kickbacks to patients, a total of 14 counts. Vasserman, who was the manager for Penn Choice’s Huntingdon Valley base, was indicted with the company’s owner Anna Mudrova, and operators Yury Gerasyuk, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Valeriy Davydchik, all of whom have pleaded guilty.
The scheme involved more than $3.6 million in fraudulent claims submitted to Medicare. The defendants conspired to defraud Medicare by recruiting patients who were able to walk and could travel safely by means other than ambulance and who therefore were not eligible for ambulance transportation under Medicare requirements. The defendants, and others acting on their behalf, falsified reports to make it appear that the patients needed to be transported by ambulance when the defendants knew that the patients could be transported safely by other means and that many of them walked to the ambulance for transport. The defendants themselves, or through others, paid illegal kickbacks to the patients as part of scheme. The defendants billed Medicare for these ambulance services as if those services were medically necessary and, as a result of the fraudulent billing, the Medicare program sustained losses of more than $1.5 million for this medically unnecessary method of transportation.
In addition to the prison term, U.S. District Court Judge Juan R. Sànchez ordered three years of supervised release, restitution in the amount of $1,703,450.74, joint and several with the co-defendants, a special assessment of $1,400 and forfeiture of any assets traceable to the offense.
In prior proceedings, defendant Khusen Akhmedov, an EMT, was sentenced to 27 months in prison; ambulance drivers, Valeriy Davydchik and Yury Gerasyuk, were each sentenced to 24 months in prison; and the corporation was ordered to pay restitution and to cease all operations. The three remaining defendants are awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.
In addition to restitution to Medicare of $1,548,583.93, the Court ordered restitution of approximately $154,866.81 payable to Highmark Blue Cross, which provides supplemental insurance to Medicare beneficiaries.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alaska Attorney Pleads Guilty to Failing to File Income Tax ReturnsRead the Press Release
Paul D. Stockler pleaded guilty today in the U.S. District Court in Anchorage, Alaska, to three counts of willful failure to file income tax returns, the Justice Department and Internal Revenue Service (IRS) announced.
According to the plea agreement, Stockler is an attorney who operated a law practice in Anchorage. For tax years 2006, 2008 and 2009, he earned gross income in excess of the filing threshold, but failed to file U.S. individual income tax returns reporting this income to the IRS. Stockler faces a statutory maximum sentence of one year in prison, one year of supervised release, and a fine of up to $100,000 for each count of willful failure to file an income tax return.
The case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Kevin F. Sweeney and Katherine Wong of the Justice Department’s Tax Division are prosecuting the case.
Wednesday 25 June 2014
Woodstock, Vermont Business Woodstock Pharmacy Takes Steps to Comply with the Americans with Disabilities ActRead the Press Release
The United States Attorney’s Office for the District of Vermont announces that the owners of Woodstock Pharmacy located at 19 Central Street, Woodstock, Vermont have agreed to complete specific modifications to come into compliance with Title III of the Americans with Disabilities Act (“ADA”). Title III of the ADA prohibits a public accommodation from denying an individual or a class of individuals, on the basis of a disability, the opportunity to participate in or benefit from the goods, services, facilities, or accommodations of an entity. Title III requires a public accommodation to remove architectural barriers to access in existing facilities where it is readily achievable to do so. The United States Attorney’s Office’s investigation began following a complaint made to the Vermont Human Rights Commission regarding the accessibility of Woodstock Pharmacy.
An onsite survey of Woodstock Pharmacy performed by United States Department of Justice architects revealed ADA compliance issues related to the shop’s entrances and interior spaces. Woodstock Pharmacy will remedy ADA compliance issues related to the shop’s entrances and interior by October 1, 2014.
Woodstock Pharmacy’s owner recognized the obligation to address the issues identified in the onsite survey. Gary Smith, owner of Woodstock Pharmacy, is to be commended for his cooperation with the Office of the United States Attorney for the District of Vermont.
The Office of the United States Attorney for the District of Vermont worked in partnership with Tracey Tsugawa of the Vermont Human Rights Commission in addressing and resolving these important civil rights issues. Assistant United States Attorney Nikolas P. Kerest, with assistance from the Disability Rights Section of the Civil Rights Division of the Department of Justice, handled this matter on behalf of the United States and is working with other Vermont businesses to resolve their ADA compliance issues. Further information on the ADA and its requirements may be found at www.ada.gov.
Williamson County Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn June 25, 2014, John S. Andrews, 30, of Marion, pled guilty to a one-count indictment, charging conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between August 2012 and December 2012, in Jackson County. Evidence at the plea hearing established that Andrews and others obtained pseudoephedrine together for use in the manufacture of methamphetamine. Andrews, who is currently incarcerated in the Illinois Department of Corrections, is set for sentencing on the federal offense on October 30, 2014. At that time, he faces a term of imprisonment of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The investigation was conducted by the Jackson County Sheriff’s Office and the Murphysboro Police Department.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Williamson County Man Pleads Guilty to Firearm and Cocaine OffensesRead the Press Release
Follow @SDILNewsOn June 25, 2014, James D. Gunn, 34, of Marion, pled guilty to a two-count indictment, charging unlawful possession of a firearm by a felon and possession with intent to distribute cocaine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offenses occurred on October 31, 2013, in Williamson County. Evidence at the plea hearing established that Gunn sold cocaine to a confidential source working for law enforcement. During an October 31, 2013, search warrant at Gunn’s Marion residence, agents located a Ruger, Super RedHawk, .44 caliber revolver, cocaine, digital scales, drug packaging materials, and U.S. currency. Upon arrest, Gunn admitted to ownership of the firearm and cocaine. At the plea hearing, Gunn’s bond was revoked and he was remanded to the custody of the U.S. Marshals Service, pending an October 30, 2014, sentencing hearing.
On the firearm offense, Gunn faces a term of imprisonment of up to 10 years, to be followed by 3 years’ supervised release, and a $250,000 fine. On the cocaine offense, Gunn faces a term of imprisonment of up to 20 years, to be followed by 3 years’ supervised release, and a $1,000,000 fine.
The investigation was conducted by the Southern Illinois Enforcement Group. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Illinois State Police, and Williamson County States Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Wilkes-Barre Man Sentenced to Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced yesterday, in federal court in Scranton, by United States District Judge Malachy Mannion, to serve 151 months in prison on a charge of conspiracy to distribute heroin.
According to United States Attorney Peter Smith, Zacharae Lowe, age 31, a resident of Wilkes-Barre pleaded guilty to the conspiracy charge in Octoberof 2013.
Lowe was charged after an investigation conducted by the United States Drug Enforcement Administration, the Pennsylvania State Police and the Wilkes-Barre Police Department. An Indictment was filed against Lowe and nine other persons on May 21, 2013. The charges against Lowe arose from his involvement in heroin trafficking and possession of firearms. Lowe was sentenced as a career offender under the United States Sentencing Commission Sentencing Guidelines.
In addition to the prison term, Judge Mannion ordered that Lowe be supervised by a probation officer for 4 years following his release from prison.
The case was prosecuted by Assistant United States Attorney William S. Houser.
Wilkes-Barre Man Sentenced to Prison on Drug ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Wilkes-Barre man was sentenced yesterday, in federal court in Wilkes-Barre, by United States District Judge A. Richard Caputo, to serve 151 months in prison on a charge of possession with intent to distribute cocaine and crack cocaine.
According to United States Attorney Peter Smith, Robert Tolbert, age 40, a resident of the Wilkes-Barre area, pleaded guilty to the drug charge in February of this year.
Tolbert was charged after an investigation conducted by the Federal Bureau of Investigation, the Pennsylvania Office of Attorney General Bureau of Narcotics Investigation, the Plains Township Police Department, and the Luzerne County District Attorney’s Office. The investigation resulted in charges against Tolbert and ten others. An Information was filed against Tolbert on January 21, 2014. The charge against Tolbert arose from his involvement in cocaine and crack cocaine trafficking. Tolbert was sentenced as a career offender under the United States Sentencing Commission Sentencing Guidelines.
In addition to the prison term, Judge Caputo ordered that Tolbert be supervised by a probation officer for 3 years following his release from prison.
The case was prosecuted by Assistant United States Attorney John C. Gurganus.
Wentzville Man Indicted on Fraud ChargesRead the Press Release
St. Louis, MO – JAMES STALEY was indicted for his alleged scheme to defraud investors by making false promises of high rates of return and minimal risk. The indictment states that Staley defrauded eleven investors/lenders by causing them to invest over $3.4 million, giving him commissions totaling over $570,000.
According to the indictment, in 2007, James Staley operated Wealth Financial International. That same year, he became a sales agent for a Premium Financing Company located in California known as B & B Equity. As a sales agent Staley found individuals to provide loans for life insurance policies. In many instances, several of these investor/lender’s funds were bundled together to provide financing to purchase one life insurance policy. Staley received a commission for each investor/lender that he found to contribute financing for the purchasing of the life insurance policies. B & B required the lender/investor to invest in the insurance policy for a fixed period of time varying from 18 months to two years. During this period of time Staley represented to clients of Wealth Financial that B & B Premium Financing Company would sell the bundled insurance policies on the open market with guaranteed returns. However, Staley was well aware that if B & B was unable to secure a buyer for the bundled insurance policies, his clients would lose all their monies invested in the Premium Financing product sold by B & B. The indictment states that Staley defrauded eleven investors/lenders by causing them to invest over $3.4 million with B & B, giving him commissions totaling over $570,000.
Staley, Wentzville, MO, was indicted by a federal grand jury on three felony counts of wire fraud on June 18, 2014. He appeared in federal court earlier this week.
If convicted, wire fraud carries a maximum penalty of 30 years in prison and/or fines up to $ 1 million. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.U.S. Attorney Announces “take 25” Child Safety Event in TucsonRead the Press Release
TUCSON, Ariz. - The National Center for Missing and Exploited Children (NCMEC) created the Take 25 campaign to encourage families to take 25 minutes to talk to their children about safety and abduction prevention. NCMEC estimates that 800,000 children are reported missing in America every year, which is more than 2,000 children each day. Fortunately, most of these children are quickly located.
NCMEC has found that in 51% of attempted abduction cases, children escaped would-be abductors through their own actions. 32% of the children actively resisted (yelling, kicking, pulling away, running away, or attracting attention). Even more inspiring is that in 17%
of these cases, a parent or another individual intervened to rescue the child. Teaching and reassuring children about safety - without scaring them - requires a delicate balance. Take 25 provides parents tools and age-appropriate suggestions for approaching the topic of safety with their children.“The annual Take 25 national child safety campaign is particularly important this time of year, when children begin their summer breaks from school and have more time on their hands” said U.S. Attorney John S. Leonardo. “We encourage parents to take time and pledge to talk with their children about safety and abduction prevention. We hope that the tools and information provided at this year’s Take 25 event will assist families in keeping their children safe.”
This year, the United States Attorney’s Office, in partnership with the U.S. Marshals Service, Department of Homeland Security, Federal Bureau of Investigation, the Tucson Police Department, the Arizona Attorney General’s Office, the Pima County Sheriff’s Office, and the Arizona Child Advocacy Center, will offer a Take 25 child safety event at the Tucson Children’s Museum. This event is designed to help parents and others teach children to be alert to potential threats and provide steps that children can take to stay safe, both on the Internet and in daily life.
The event will be held on Monday, June 30, 2014 at the Children’s Museum Tucson, from 9:00 a.m. to 4:00 p.m. Information regarding child safety will be provided, and law enforcement representatives will be available to speak with children and parents. In addition, interactive children’s self-defense demonstrations by Ko Sho Martial Training Institute will be scheduled throughout the day, and digital child identification kits will be provided free of charge to those that attend.
For more information on NCMEC, visit www.missingkids.com. For more information about the Take 25 campaign, visit www.Take25.org. For more information on Project Safe Childhood, visit www.projectsafechildhood.gov.
RELEASE NUMBER: 2014-036_Take_25_Tucson
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Two Former Stock Brokers Charged in Manhattan Federal Court with Insider Trading OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), today announced conspiracy and securities fraud charges against BENJAMIN DURANT and DARYL PAYTON, two former stock brokers at a securities trading firm (“Securities Trading Firm-1”), for their alleged involvement in an insider trading scheme. Specifically, DURANT, PAYTON, and their co-conspirators allegedly traded on the basis of material, non-public information (“Inside Information”) concerning IBM’s acquisition of a software company, SPSS, Inc., in 2009, earning hundreds of thousands of dollars in profits. DURANT and PAYTON were arrested this morning at their homes in Manhattan, New York, and will be presented in Manhattan federal court before U.S. Magistrate Judge Michael H. Dolinger this afternoon.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Benjamin Durant and Daryl Payton not only acquired inside information about a corporate acquisition and made illegal profits from it, but they colluded with others to conceal their crime, even holding a secret meeting at a hotel the night the acquisition was announced to devise their cover-up plan. This kind of dishonesty is profitable only in the short run, ultimately leading to arrest and prosecution.”
FBI Assistant Director-in-Charge George Venizelos said: “The defendants bought SPSS stock and options before a leaked acquisition by IBM, violating the law and breaching their duty, as alleged. When Durant and Payton were asked about their trades in an internal investigation, they doubled down and lied. Today they find themselves under arrest. The integrity and fairness of our financial markets are paramount. It’s a matter of national security. We will police this type of illegal behavior and make as many arrests as necessary until people stop cheating and ripping off others to get ahead.”
In a separate action, the U.S. Securities and Exchange Commission (“SEC”) announced civil charges against DURANT and PAYTON.
The following allegations are based on the Indictment unsealed today in Manhattan federal court:
The Inside Information concerning IBM’s acquisition of SPSS originated from a corporate lawyer who was part of the legal team that represented IBM in the transaction (“Attorney-1”) in 2009. On May 31, 2009, Attorney-1 shared Inside Information concerning the transaction, including the names of the parties and the fact that IBM was going to acquire SPSS for a significant premium over its market price, with his close friend, Trent Martin, a former research analyst at an international financial services firm. The information was shared in confidence and, based on their longstanding history of sharing confidences, Attorney-1 expected that Martin would not share the information or use it to trade.
However, in June and July 2009, Martin bought SPSS common stock and call option contracts based on the Inside Information he was given by Attorney-1 and, in turn, shared the tip with his roommate, Thomas Conradt, who worked as a stock broker at Securities Trading
Firm-1. In July 2009, Conradt passed along the tip to DURANT and PAYTON, his co-workers at Securities Trading Firm-1, who then bought SPSS call options based on the Inside Information. When IBM announced its acquisition of SPSS on July 28, 2009, the share price of SPSS common stock rose by 41% in one day. Thereafter, DURANT, PAYTON, Martin, Conradt and David Weishaus, whom Conradt also tipped, sold their SPSS positions, yielding total profits worth hundreds of thousands of dollars.
After IBM announced its acquisition of SPSS, DURANT and PAYTON took steps to conceal their illegal insider trading activity. On the evening the IBM/SPSS transaction was announced, DURANT and PAYTON met Conradt, Weishaus, and another co-conspirator at a hotel in Manhattan. At that meeting, DURANT, PAYTON, and the others discussed their trading in SPSS securities and how much money they made. When they were all together, DURANT suggested that if anyone asked why they had traded in SPSS securities, they should simply say that they liked technology stocks. Thereafter, prior to the sale of his call options, PAYTON transferred his options from securities accounts at Securities Trading Firm-1 to two securities accounts that he opened at a different brokerage firm. In doing so, PAYTON falsely informed the new brokerage firm during a recorded telephone call that he was a “self-employed real estate consultant,” rather than a stock broker at Securities Trading Firm-1. In that call, a representative from the new brokerage firm specifically informed PAYTON that if he worked at a broker/dealer, duplicate account statements might have to be sent to his employer. Nevertheless, PAYTON did not inform the new brokerage firm that he worked at Securities Trading Firm-1. Later, in November 2009, when Securities Trading Firm-1 conducted an investigation into the trading activity of DURANT and PAYTON in SPSS, both of them offered cover stories for their SPPS trading and neither indicated that he had heard about SPSS from, or spoken about the company with, Conradt, Weishaus, or another co-conspirator.
DURANT, 37, of New York, New York, has been charged with one count of conspiracy to commit securities fraud and two counts of securities fraud (Count Two and Three). PAYTON, 38, also of New York, New York, has been charged with one count of conspiracy to commit securities fraud and three counts of securities fraud (Count Four through Six). Count One, the conspiracy charge, carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Counts Two through Six each carry a maximum potential penalty of 20 years in prison and a maximum fine of $5 million. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Martin, Conradt, and Weishaus have previously pled guilty.
Mr. Bharara praised the investigative work of the FBI. He also thanked SEC for its assistance in the case.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Telemachus P. Kasulis and John T. Zach are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Benjamin Durant and Daryl Payton Indictment
Two Area Men Plead Guilty to Federal Heroin ChargesRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that two area men pled guilty to drug charges in federal court in Beckley. Tommy Ray Prater II, 34, of Beaver, pled guilty to traveling in interstate commerce to facilitate unlawful activity. He admitted that on April 9 and 10, 2013, he and another person drove from Shady Spring, West Virginia to Camden, New Jersey, where they obtained heroin, and returned to Shady Spring where the heroin was sold. Prater admitted that he had made this same trip for heroin on other occasions. He faces a sentence of up to five years and a $250,000 fine. The case was investigated by the West Virginia State Police, the Raleigh County Sheriff’s Department, and the FBI.
Christopher Miller, 32, of Alderson, pled guilty to distribution of heroin. Miller admitted that in August of 2013, he distributed two packets of heroin to a person cooperating with law enforcement authorities. The drug deal took place in the Alderson area. Miller faces a sentence of up to twenty years and a $1,000,000 fine. His case was investigated by the Greenbrier County Drug and Violent Crime Task Force and is being prosecuted under the Greenbrier Heroin and Pill Initiative directed by the United States Attorney’s Office.
This case is 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 pills and heroin in communities across the Southern District.
United States District Judge Irene C. Berger set sentencings in both cases for October 23, 2014.Top Two Officers of Joe Gibson Suzuki Guilty as Charged in Federal CourtRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Lewis Jones Harward, Jr., age 41, of Myrtle Beach, South Carolina Richard James Harward, age 40, of Belton, South Carolina Lennie Wylie Sanders, age 32, of Danville, Virginia Wanda Suzette Smith, age 59, of Fountain Inn, South Carolina Kathy Valentine Stewart, age 60, of Easley, South Carolina Brian J. Sullivan, age 56, of Lawrenceville, Georgia
Columbia, South Carolina ----- United States Attorney Bill Nettles announced today that Paul Michael Gibson, age 57, of Spartanburg, South Carolina, and Billy John Mills, Jr., age 45, of Huntersville, North Carolina, have pled guilty as charged to a three count Federal Wire Fraud Indictment. The pleas were accepted by District Judge Timothy M. Cain sitting in the G. Ross Anderson Federal Courthouse in Anderson, South Carolina. Gibson and Mills join seven others who have entered pleas of guilty for their roles in the operation of Suzuki dealerships operating in Spartanburg and Gaffney, South Carolina, under the name of Joe Gibson Suzuki. (Names, ages and addresses of these seven are at the end of this release.) All nine will be sentenced after the preparation of Presentence Reports. Assistant United States Attorney David C. Stephens of Greenville was in charge of the prosecution of the case and presented the guilty pleas to the Court.
USA Nettles advised that the copy of the indictment attached hereto sets forth in detail the facts of the case, but that in summary Joe Gibson Suzuki, at one point one of the most productive Suzuki dealerships in the country, was an organization riddled with illegal practices. These practices included false advertising, false statements to induce banks to finance uncreditworthy purchasers, and false reporting of sales to cause bonuses to be paid by Suzuki of North America. Mr. Gibson was the owner of the dealership and Mr. Mills ran the day to day operations of the business. At the guilty plea hearing, AUSA Stephens stated that there was a “culture of corruption” that permeated the entire business. Joe Gibson Suzuki is no longer in business.
Mr. Nettles commended agents of the United States Postal Service and the Federal Bureau of Investigation for their years of work in investigating this case. Mr. Nettles stated that many aspects of this case were novel and that he was unaware of other criminal prosecutions of car dealers for misleading advertisements as in this case.
The following is a list of others convicted in this case:#####
Three Men Indicted on Gambling and Money Laundering ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a 23-count indictment charging Paul Borrelli, 66, and Joseph Ruff, 32, both of Rochester, N.Y., and Mark Ruff, 40, of Connecticut, with conducting an illegal gambling business.
The indictment also charges Borrelli with 12 counts of money laundering, two counts involving the deposit of gambling proceeds into business accounts held by two Rochester companies to conceal the nature of gambling proceeds, and 10 counts of conducting financial transactions affecting interstate commerce which involved over $10,000 of proceeds of illegal gambling activity. Joseph Ruff was charged with 10 counts of money laundering, three counts of involving the deposit of gambling proceeds into specified bank accounts in order to conceal the nature of the gambling proceeds, and 10 counts of conducting financial transactions affecting interstate commerce which involved over $10,000 of proceeds of illegal gambling activity.
If convicted of the illegal gambling offense, the defendants face a maximum sentence of five years in prison, and a $250,000 fine. If convicted of the money laundering charges, Paul Borrelli and Joseph Ruff face a maximum sentence up to 20 years in prison and a $500,000 fine. Additionally, the defendants would be required to forfeit $76 million in United States currency, the sum of money equal to the total amount of gross wagers involved in the illegal gambling business, six bank accounts, three real properties and a vehicle.
Assistant U.S. Attorney Robert A. Marangola, who is handling the case, stated that according to the indictment, since January 2012, Borrelli, Joseph Ruff, and Mark Ruff have conducted an illegal gambling business involving sports betting which utilized multiple offshore internet gambling websites. The defendants provided betters with an account and password that permitted them to place wagers on various sporting events over the websites. The websites provide the “line” and tallied the total won or lost by the bettors. The cash payments to settle wagers generally occurred at face-face meetings, drop offs at residences or the Marina Bar (owned and managed by Borrelli and Joseph Ruff), FedEx deliveries, and bank deposits.
Borrelli was arrested at his residence at 31B Veldor Park in the City of Rochester, and Joseph Ruff was arrested today at his residence at 360 Edgemere Drive, a lakefront residence on Lake Ontario. Coinciding with their arrests this morning, federal search warrants were executed at each of their residences. During the searches, law enforcement seized over $80,000 in gambling proceeds secreted in various locations.
Borrelli and Joseph Ruff were arraigned this afternoon before Magistrate Judge Marian W. Payson and released on their own recognizance. They are due back in court on July 1, 2014.
An arrest warrant has been issued for Mark Ruff.
The indictment is the culmination of an investigation conducted by the Organized Crime Drug Enforcement Task Force, which included the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley, Federal Bureau of Investigation, Internal Revenue Service, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office, Rochester Police Department, under the direction of Chief Michael Ciminelli, Drug Enforcement Administration, under the direction of Acting Special Agent in Charge James J. Hunt, New York Field Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Division, Greece Police Department, under the direction of Chief Patrick Phelan, and the Webster Police Department, under the direction of Chief Gerald Pickering.Three California Men Sentenced for Leading a Large Scale Juneau Oxycodone Distribution and Money Laundering ConspiracyRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that three defendants in a multi-year, multi-agency investigation have been sentenced for their roles in a large-scale drug trafficking and money laundering conspiracy operating between California and Alaska. The defendants sentenced were:
- MILAN CAPRICE THOMAS, 43, of Sacramento, California, was sentenced to 105 months imprisonment and three years of supervised release on June 24, 2014. Thomas pled guilty in May 2012 to conspiracy to distribute and to possession with the intent to distribute oxycodone, and conspiracy to launder money.
- DEANDRE TYRON DANTZLER, 34, of Sacramento, California, was sentenced to 144 months imprisonment and five years supervised release on June 24, 2014. Dantzler pled guilty in July 2011 to conspiracy to distribute and to possession with the intent to distribute oxycodone.
- RICHARD MELVIN CORUM, 31, of Sacramento, California, was sentenced to 120 months imprisonment and six years supervised release on June 23, 2014. Corum was convicted at a jury trial on July 1, 2013, for conspiracy to distribute and to possession with the intent to distribute oxycodone, and witness tampering.
According to filings with the court, Thomas, Dantzler and Corum were high-level members of a drug trafficking conspiracy who acquired large amounts of oxycodone from suppliers in the lower 48 states. In 2007, Thomas and Dantzler began transporting oxycodone on their person to Juneau, Alaska, using commercial air travel, and travelled back body-carrying drug proceeds. The pair later used drug couriers to carry drugs on commercial aircraft to Alaska and drug proceeds back to California. Thomas and Dantzler would arrange flights for couriers who would import the oxycodone to other members of the conspiracy in Juneau for subsequent sale. Thomas and Dantzler later used bank accounts and wire remittance companies to transfer drug proceeds from Alaska to California. Thomas and Dantzler used dozens of people in the procurement, transport, and sale of tens of thousands of oxycodone pills in the Juneau area and Thomas laundered over $1.5 million in drug proceeds through his bank account and that of another co-conspirator.
Corum joined the conspiracy in early 2011 as a source of supply. Due to heavy law enforcement interdiction efforts, Corum was later brought in by Thomas to be an equal member in the conspiracy. Corum recruited drug couriers to travel to Alaska for the conspiracy and had the couriers reside in the community, while receiving packages containing oxycodone via package delivery services in order to avoid detection.
On March 2, 2012, Corum was arrested for his role in the drug conspiracy. Corum made numerous threats to potential witnesses against him while awaiting trial. He said, “Everyone that is going to testify against me will disappear.” Corum later assaulted an individual who was cooperating with law-enforcement and was scheduled to testify at Corum’s trial. He was also convicted by the jury of a charge relating to this assault.
In sentencing the defendants, United States District Court Judge Timothy M. Burgess repeatedly emphasized the seriousness of the offense due to the human wreckage caused by the defendants’ distribution of a highly addictive narcotic, and noted the need to protect the public and to deter the defendants and others from committing these types of crimes in the future.
“This multimillion dollar enterprise submerged Juneau in a sea of addiction,” said DEA Special Agent in Charge Matthew G. Barnes. “The nationwide prescription drug and heroin epidemic is fueled by organizations just like this. The success of this investigation is attributed to the ongoing partnership between DEA and our federal, state, and local law enforcement partners.”
“Large-scale narcotic trafficking operations infect our communities with crime and destroy the lives of people caught up in using the poison they peddle,” said Kenneth J. Hines, Special Agent in Charge of Internal Revenue Service, Criminal Investigation, in Seattle. “Drug crimes leave a paper trail and I am pleased that the IRS partners with the interdiction efforts of the DEA and local law enforcement to dismantle these organizations.”
Ms. Loeffler commends the Drug Enforcement Administration, Internal Revenue Service - Criminal Investigation, Port of Seattle Police Department, and the Juneau Police Department - Drug Metro Unit, for the investigation leading to the successful prosecution and dismantlement of this large criminal organization.
Tampa Man Sentenced for Role in Fraudulent Tax Refund SchemeRead the Press Release
ROANOKE, VIRGINIA – A Tampa, Fla. man previously convicted of a scheme to profit from fraudulent United States Treasury checks was sentenced in absentia yesterday in the United States District Court for the Western District of Virginia in Roanoke.
Osama “Sam” Mustafa, 51, of Tampa, Fla., was previously convicted of one count of conspiracy to defraud the United States for the purpose of impairing the lawful functions of the Internal Revenue Service, to receive fraudulent Treasury Checks, to commit wire fraud and to structure currency transaction, one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.
Yesterday in U. S. District Court, Mustafa was sentenced in absentia to 240 months of federal incarceration. In addition, $17.7 million in assets were ordered forfeited from the defendant. Mustafa removed his monitoring bracelet and fled law enforcement following his conviction and while awaiting sentencing, and his bail bond has been forfeited.
“Mr. Mustafa stole millions of dollars by obtaining fraudulent income tax refunds,” United States Attorney Timothy J. Heaphy said today. “Working with our investigative partners, we will do all we can to prosecute tax fraud and hold tax cheats accountable.”
“Using the U.S. Treasury as a personal piggy bank to obtain millions of dollars in fraudulent refunds, Mustafa not only showed his blatant disregard of the law, but also for those taxpayers victimized,” said Thomas J Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field
Office. “This sentencing is a reminder that identity thieves who use the personal information of unsuspecting victims to file bogus tax returns and steal millions of dollars from the U.S. Treasury, will be prosecuted to the fullest extent of the law.”Mustafa was convicted of purchasing fraudulent income tax return refund checks and checks issued for Refund Anticipation Loans, and then presenting those fraudulent checks for payment at financial institutions in the Western District of Virginia, Middle District of Florida, and elsewhere.
The investigation of the case was conducted by the Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation, the United States Secret Service, the United States Marshals Service Asset Forfeiture Program, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Attorney’s Office for the Middle District of Florida. Assistant United States Attorney Joseph Mott prosecuted the case for the United States.
St. Louis County Man Indicted on Tax ChargesRead the Press Release
St. Louis, MO – RAJU MUKHI was indicted for his alleged failure to file a report to the IRS on his foreign financial accounts and for filing false tax returns.
United States citizens are required to report income from foreign countries, such as bank account, securities and any other financial accounts on their tax returns. If the value is more than $10,000, they are required to file a Report of Foreign Bank and Financial Accounts, Form TD F90-22.1 (FBAR).
According to the indictment, Mukhi failed to disclose the existence of Clariden Bank and Goldman, Sachs & Company Bank-Singapore accounts and the income earned in these accounts to his tax preparers for the years 2006 and 2008. The indictment also states that Mukhi failed to file an FBAR disclosing that he had financial accounts in Singapore and Switzerland for years 2007-2010.Mukhi, St. Louis, MO, was indicted by a federal grand jury on two felony counts of filing false tax returns and four felony counts of failure to file reports of foreign bank and financial accounts. The indictment was returned June 5th, but remained sealed until the arrest of the defendant. He is expected to appear in federal court for arraignment this morning.
If convicted, each count of filing false tax returns carries a maximum penalty of three years in prison and/or fines up to $100,000. Each of the other counts carry a maximum penalty of five years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Dianna Collins is handling the case for the U.S. Attorney's Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
Santostee Man Sentenced to Twenty-Seven Months for Assaulting Navajo TeenagerRead the Press Release
ALBUQUERQUE – Jayson Gustina, 24, an enrolled member of the Navajo Nation who resides in Sanostee, N.M., was sentenced this morning to 27 months in federal prison followed by three years of supervised release for his assault conviction. Gustina also was order to pay $1,654.92 in restitution to cover the costs of medical care for the victim of his criminal conduct.
Gustina was arrested on Oct. 23, 2013, on a criminal complaint charging him with assault resulting in serious bodily injury and aggravated sexual abuse. On Jan. 19, 2013, Gustina was indicted and charged with assault resulting in serious bodily injury and abusive sexual contact. According to court filings, Gustina assaulted the victim, a 16-year-old Navajo girl, and attempted to rape her on Aug. 21, 2013, in Shiprock, N.M.
On March 17, 2014, Gustina admitted assaulting the victim on Aug. 21, 2013. He also acknowledged that the victim suffered severe bruising, swelling, and a fractured cheek bone as a result of the assault.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
The case was prosecuted as part of 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.
Sand Springs Man Sentenced to 5 Months Home Detention, $30,000 Restitution for Theft of Government PropertyRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DAVID ALLEN ROBERTS, age 32, of Sand Springs, Oklahoma, was sentenced to 5 years of probation with 5 months of home detention for THEFT OF GOVERNMENT PROPERTY, in violation of Title 18, United States Code, Section(s) 641. ROBERTS was also ordered to pay $30,727.65 in restitution.
Charges arose from an investigation by the Broken Arrow Police Department, the Naval Criminal Investigation Services and the Federal Bureau of Investigation. The defendant was indicted in November, 2013 and pled guilty in December, 2013.
The Indictment alleged that during the period of in or about February 2013 to on or about October 15, 2013, in the Eastern District of Oklahoma, the defendant did willfully and knowingly embezzle, steal, purloin, and convert to his own use and the use of another, things of value of the United States having a value of more than $1000.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Christopher Wilson represented the United States.