Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
15 August 2014
Pierce County Felon Sentenced to 20 Years in Prison as Armed Career CriminalRead the Press Release
A repeat offender arrested as part of an anti-gang initiative was sentenced this week in U.S. District Court in Tacoma to 20 years in prison, announced U.S. Attorney Jenny A. Durkan. ERIC QUINN FRANKLIN, 49, of Lakewood, Washington was convicted at a trial in September 2013, of three counts related to the distribution of crack cocaine, one count of possessing a firearm in relation to a drug trafficking offense, and one count of being a felon in possession of a firearm. Judge Benjamin H. Settle ruled FRANKLIN qualified as an Armed Career Criminal. The illegal firearms convictions and the Armed Career Criminal designation combine for a mandatory minimum 20 years sentence.
FRANKLIN was arrested May 11, 2011 at his Lakewood apartment, following sales of crack cocaine to a person working with law enforcement. At the time of his arrest law enforcement located a safe in the bedroom of the apartment. Inside the safe was an unloaded Raven Arms .25 caliber semi-automatic pistol, and a loaded Para-Ordnance Warthog, .45 caliber semi-automatic pistol. The safe contained additional ammunition as well as cocaine, oxycodone and cash. FRANKLIN has four prior felony drug convictions.
FRANKLIN was prosecuted as part of a law enforcement emphasis on gang activity in the Pierce County area. FRANKLIN was an associate of the ‘Tillicum Park Gangsters’ who were investigated in a joint operation by the Lakewood Police Department and the FBI’s South Sound Gang Task Force.
The case was prosecuted by Assistant United States Attorneys Gregory A. Gruber and Arlen Storm.
People’s United Bank Employee Pleads Guilty to Embezzling More Than $400,000Read the Press Release
Follow @USAO_CT
Deirdre M, Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MARIA ROSA ESTEVES, 40, of Bridgeport, waived her right to indictment and pleaded guilty yesterday before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of embezzlement from a federally insured bank.
This case was investigated by the Federal Bureau of Investigation and the Greenwich Police Department and is being prosecuted by Senior Litigation Counsel Richard J. Schechter.
According to court documents and statements made in court, ESTEVES was employed by People’s United Bank from 1993 to 2014. Beginning in 2006, ESTEVES worked primarily in the bank’s Adjustments Department, ultimately holding the title of Lead Adjuster with responsibilities that included arranging for bank cashiers’ checks to be issued to customers when a customer’s account needed to be adjusted. ESTEVES used her position in the Adjustments Department to embezzle more than $400,000 from the bank by causing the bank to issue cashiers’ checks that ESTEVES would then use to pay persons or entities that she owed money to, including her utility company, homeowner’s insurance company and mortgage providers. ESTEVES also embezzled money by depositing cashiers’ checks into bank accounts she controlled and from which she was able to access the funds. In total, ESTEVES misappropriated more than 300 cashiers’ checks.
ESTEVES is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny in Hartford on November 7, 2014, at which time she faces a maximum term of imprisonment of 30 years, a fine of up to $1 million and an order of restitution.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Offender with more than 30 Prior Felony Convictions Sentenced to 25 Years in Prison as an Armed Career CriminalRead the Press Release
A former Washington State Prison inmate who led a tax fraud scheme from prison, was sentenced today in U.S. District Court in Tacoma to 25 years in prison for illegal possession of firearms, explosives and ballistic vests, announced U.S. Attorney Jenny A. Durkan. KENNETH RANDLE DOOR, 44, has more than 30 felony convictions over the last three decades and was found to be an Armed Career Criminal by U.S. District Judge Ronald B. Leighton. DOOR has prior convictions for assault with a deadly weapon for shooting at police officers, as well as multiple burglary convictions. At sentencing Judge Leighton said to DOOR, “You are quintessentially evil….you know no regard for community, for people who are weaker than you are.”
“For the last 30 years, this defendant has been on a continuous and relentless quest to wreak havoc on others and his community,” said U.S. Attorney Jenny A. Durkan. “He has left countless victims in his wake. Dozens of convictions and criminal sentences for burglary, theft, assault, harassment, high-speed car chases, unlawful firearms possession and more have failed to deter him from unlawful behavior. This lengthy sentence is needed to protect the public.”
According to records filed in the case, DOOR was arrested on November 9, 2011 while still on community supervision from a state conviction. Acting on a tip, law enforcement discovered DOOR had two firearms, two bullet-proof vests and an explosive device at his Tacoma home. One of the firearms had been stolen in a burglary. DOOR originally pleaded guilty in October 2013, then withdrew his plea and went to trial in March 2014. He was found guilty following a four day jury trial.
DOOR will be sentenced by U.S. District Judge Benjamin H. Settle on September 15, 2014 for the separate criminal scheme involving tax fraud while incarcerated at the Washington State Penitentiary at Walla Walla. According to records in that case, in 2008 and 2009, DOOR and other defendants conspired to file fake tax returns using the names and Social Security numbers of prison inmates to claim fraudulent refunds. Using the internet the conspirators identified companies that had declared bankruptcy and had recently closed. The conspirators created fake W-2 forms indicating wages paid and taxes withheld from the individuals whose identities they used. Virtually all of these individuals were prison inmates at the time who had not been employed by the now defunct companies. The conspirators filed at least 31 false tax returns, attempting to obtain more than $145,000 in refunds. The conspirators obtained nearly $72,000 in fraudulent tax refunds.
DOOR’s co-conspirators in the tax scheme have been sentenced to terms ranging from eight months to 33 months in prison.
The tax case was investigated by Internal Revenue Service Criminal Investigation (IRS-CI). The weapons case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Washington State Department of Corrections. The cases are being prosecuted by Assistant United States Attorneys Steven Masada and Norman Barbosa.
Oakland Resident Charged with Conspiring to File False Tax Returns with the IRSRead the Press Release
SAN FRANCISCO – Valorie Shaw was charged yesterday with conspiring to file false tax returns with the Internal Revenue Service, in violation of 18 U.S.C. § 286, United States Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to the Indictment, from April 2011 through April 2013, Valorie Shaw took identities from her employer and also received text messages from her co-conspirators containing personal identifying information. Shaw used that information to create W-2s to support the fraudulent claims for refunds. The Indictment alleges one person offered to sell her baby’s identity for use in the scheme to Shaw. Shaw requested that that the IRS wire the tax payments to debit cards that were sent to mailboxes that she rented. In total, Shaw submitted about $1 million in false tax returns to the IRS.
The maximum statutory penalty for each count of conspiring to file false claims, in violation of Title 18, United States Code, Section 286, is 10 years imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Thomas Newman is the Assistant United States Attorney prosecuting the case along with the assistance of Kathy Tat. The prosecution is the result of an investigation the IRS, Criminal Investigation.
(Shaw indictment )
New Haven Man Sentenced for Supervised Release ViolationRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, the United States Attorney for the District of Connecticut, announced that DAVID LILLY, age 34, formerly of New Haven, was sentenced yesterday by U.S. District Judge Janet B. Arterton to 14 months of imprisonment for violating the terms and conditions of his supervised release. Judge Arteron ordered that his sentence run consecutively to LILLY’s effective 66 months sentence in State Superior Court. Judge Arteron also ordered that LILLY be placed on supervised release for an additional one year following his release from federal prison. If found guilty of another violation while on supervision, LILLY can be sentenced to up to an additional two years in jail.
LILLY was originally sentenced by Judge Arteton to 87 months in October 2005 for possession of a firearm by a convicted felon. He was released from federal prison and placed on supervision in November 2011. In June 2012, he was arrested in separate cases by the New Haven and Hartford Police Departments. In November 2012, Judge Arterton sentenced LILLY to ten months of imprisonment for violating the terms of his supervision.
LILLY was again released from federal custody to supervison in April 2013 and, according to documents filed in the case, in August 2013, he engaged in a gun battle with another individual in Hamden. In April 2014, LILLY pleaded guilty and was sentenced to 12 years, suspended after 66 months, for attempted assault in the first degree, criminal possession of a firearm and reckless endangerment in the first degree. It was the commission of that offense that led to Judge Arteron’s sentence today.
The case was prosecuted by Assistant U.S. Attorney Anthony E. Kaplan.PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722 [email protected]Napa County Resident Indicted on Eight Counts of Bank RobberyRead the Press Release
SAN FRANCISCO – Yesterday a federal grand jury returned an indictment against Joshua James Metoxen, charging him with eight counts of bank robbery, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Metoxen is alleged to have committed a string of bank robberies in early 2013 throughout Northern California. According to the indictment, Metoxen, 25, of American Canyon, is alleged to have robbed the following banks of the amounts, and on the dates, listed below by using verbal demands, a demand note, and intimidation:
- $2,108 from a U.S. Bank branch in San Ramon, Calif., on Feb. 23, 2013
- $4,106 from a West America branch in Middletown, Calif., on Feb. 27, 2013
- $1,350 from a U.S. Bank branch in Milpitas, Calif., on March 5, 2013
- $4,295 from a Tri-Counties Bank branch in Middletown, Calif., on March 7, 2013
- $1,479 from a U.S. Bank branch in Pleasant Hill, Calif., on March 18, 2013
- $1,133 from a U.S. Bank branch in Milpitas, Calif., on March 20, 2013
- $1,000 from a U.S. Bank branch in Castro Valley, Calif., on March 21, 2013
- $1,780 from a U.S. Bank branch in Santa Rosa, Calif., on March 26, 2013
Metoxen was arrested and made his initial appearance in federal court in Oakland on Aug. 15, 2014. Metoxen is currently detained on these charges. Metoxen’s next scheduled appearance is at 2:00 on Sept. 4, 2014, for a status conference before the Honorable Yvonne Gonzalez Rogers, United States District Court Judge in Oakland.
The maximum statutory penalty for each count of bank robbery, in violation of 21 U.S.C. § 2113(a), is 20 years and a fine of $250,000, three years of supervised release plus forfeiture and restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Christina McCall is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Vanessa Quant. The prosecution is the result of an investigation by the Federal Bureau of Investigation, Lake County Sheriff’s Office, Novato Police Department, San Ramon Police Department, Milpitas Police Department, Marin County Sheriff’s Office, Pleasant Hill Police Department, Alameda County Sheriff’s Office, Livermore Police Department and Santa Rosa Police Department.
Please note, an indictment contains only allegations, as with all defendants, Joshua James Metoxen must be presumed innocent unless and until proven guilty.
(Metoxen complaint )
(Metoxen indictment )
Monroe County Woman Charged with Heroin Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a criminal Information was filed today charging a Monroe County resident with participating in a conspiracy to distribute heroin during November 2013 through April 2014.
According to United States Attorney Peter Smith, the Information alleges that Tamika Davis, age 33, of Effort, Pennsylvania, conspired with others to distribute and possess with intent to distribute heroin in Monroe County and elsewhere.
The charge stems from an investigation by the Federal Bureau of Investigation and the Pennsylvania State Police.
Davis faces a potential maximum sentence of 20 years in prison and a $1 million fine if he is convicted of the charge.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Mission Man Sentenced for Assault with A Dangerous WeaponRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on July 28, 2014, by U.S. District Judge Roberto A. Lange.
Rigoberto Ortiz, age 45, was sentenced to 84 months in custody, a $100 special assessment to the Federal Crime Victims Fund, and forfeiture of a .45 caliber Glock.
Ortiz was indicted by a federal grand jury on February 12, 2014, for First Degree Burglary, Assault with a Dangerous Weapon, Use of a Firearm During a Crime of Violence, and Possession with Intent to Distribute a Controlled Substance. He pled guilty to Assault with a Dangerous Weapon on May 13, 2014.
The conviction arose from a December 2013 incident when Ortiz went to the house where the two victims were present, proceeded to pound and kick at the door, and then fired a shot outside the house. The Defendant later returned to the residence, where he again pounded and kicked at the door and then fired a second shot. After forcing the door open, Ortiz entered the residence and held his weapon to the first victim’s neck/throat and then to the second victim’s forehead.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S Attorney Jay Miller.
Ortiz was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Mexican National Sentenced to 51 Months for Illegal Reentry Subsequent to Conviction of Aggravated FelonyRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that MIGUEL ANGEL GUTIERREZ-CARRANZA, age 29, of Mexico, was sentenced to 51 months imprisonment, followed by 3 years of supervised release for Illegal Reentry of Previously Deported Alien Subsequent to Conviction for an Aggravated Felony, in violation of Title 8, United States Code, Sections 1326(a) and 1326(b).
The charges are a result from an investigation by the Department of Homeland Security – Immigration and Customs Enforcement. The defendant was indicted in September 2013 and pled guilty in October 2013.
The Indictment alleged that on or about August 28, 2013, in the Eastern District of Oklahoma, the Defendant, an alien, was found in the United States after having been deported and removed from the United States on or about December 3, 2011, at or near Del Rio, Texas, subsequent to a conviction for an aggravated felony in the District Court of Hughes County, Oklahoma.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparolable sentence.
Assistant United States Attorney Chris Wilson represented the United States.
Man Sentenced for Possession with Intent to Distribute Methamphetamine and Felon in Possession of a Firearm While on Pretrial ReleaseRead the Press Release
On August 15, 2014, Jamie Eugene Tuggle, 33, formerly of Lincoln, was sentenced to 164 months in prison for possession with intent to distribute 5 grams or more of methamphetamine and a consecutive sentence of 24 months for being a felon in possession of a firearm while on pretrial release. Following the prison terms, Tuggle will serve five years on supervised release. He also ordered to pay $200 in special assessments and forfeit $301.00 in cash to the United States.
Tuggle was originally indicted in August of 2013 for possession of 5 grams or more of methamphetamine with intent to distribute. That charge resulted from the execution of a search warrant at his Lincoln residence on June 30, 2013. During that search, Lincoln police officers found 28.5 grams of a substance containing methamphetamine which was determined to be approximately 85% pure. Officers also found items consistent with the sale of methamphetamine in Tuggle’s residence. Tuggle was contacted and was found to be in possession of $301.00 in cash. Tuggle waived his Miranda rights and admitted that the drugs found during the search of his residence belonged to him.
On October 15, 2013, Tuggle was released from custody on conditions. On December 6, 2013, Tuggle was arrested in York, Nebraska by the United States Marshal’s Service. During a search of Tuggle’s bedroom, a handgun was found. Tuggle had two prior felony convictions at the time of his arrest.
An Information was filed which added the charge of felon in possession of a firearm while on pretrial release to the drug charge. Tuggle pled guilty to both charges on April 3, 2014.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force and the United States Marshal’s Service.
Lower Brule Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Loren Lee Goodlow, a/k/a Loren Goodlow, Jr., age 25, was indicted on July 15, 2014. He appeared before U.S. Magistrate John E. Simko on July 25, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about June 11, 2014, Goodlow assaulted an adult male victim with a dangerous weapon, resulting in serious bodily injury. The charge is merely an accusation and Goodlow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, and the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Goodlow was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lower Brule Man Charged with Assault with A Dangerous Weapon and Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Joseph Thompson, age 23, was indicted on July 15, 2014. He appeared before U.S. Magistrate John E. Simko on July 25, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 3, 2014, Thompson assaulted an adult male victim with a dangerous weapon, resulting in serious bodily injury.
The charge is merely an accusation and Thompson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Thompson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Los Angeles Grand Jury Indicts Chinese National in Computer Hacking Scheme Allegedly Involving Theft of Trade SecretsRead the Press Release
LOS ANGELES – A federal grand jury has indicted a Chinese national on five felony offenses stemming from a computer hacking scheme that involved the theft of trade secrets from American defense contractors, including The Boeing Company, which manufactures the C-17 military transport aircraft.
Su Bin – who also used the names “Stephen Su,” “Stephen Subin” and “Steven Subin” – was named in a five-count indictment returned Thursday afternoon and filed in United States District Court.
Su is currently in custody in British Columbia, Canada, where he is being held pursuant to a provisional arrest warrant submitted by the United States. Su was previously charged in a criminal complaint filed in Los Angeles, but the indictment is now the operative charging document.
The indictment alleges that Su, a 49-year-old businessman, worked with two unindicted co-conspirators based in China to infiltrate computer systems and obtain confidential information about military programs, including the C-17 transport aircraft, the F-22 fighter jet, and the F-35 fighter jet.
The indictment specifically alleges three charges related to unauthorized computer access, a conspiracy to illegally export defense articles and a conspiracy to steal trade secrets. The charges carry a total maximum statutory penalty of 30 years in prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Air Force Office of Special Investigations.
Release No. 14-105
Long-Time Friends Sentenced to Federal Prison for Embezzling from Tax Consulting BusinessRead the Press Release
DALLAS — Three women, who were involved in a scheme to embezzle money from one of their former employers in Dallas, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Dallas residents Lamonica Phillips and Pamela Gail Willis, aka Pamela Gayle Knight, both 44, and Oklahoma City resident, Audrey Starr, 51, each pleaded guilty to one count of conspiracy to commit mail fraud
Today, Chief U.S. District Judge Sidney A. Fitzwater sentenced Phillips to 24 months in federal prison and ordered her to pay approximately $171,000 in restitution. She must surrender to the Bureau of Prisons on September 30, 2014.
In June, Willis was sentenced to 12 months and one day in federal prison and ordered to pay approximately $75,000 in restitution. Also in June, Starr was sentenced to a two-year term of probation and ordered to pay nearly $60,000 in restitution.
According to documents filed in the case, Phillips and Willis devised and carried out a scheme to embezzle money from Phillips’ employer, Industry Consulting Group (ICG). Starr allegedly became a conspirator in the scheme through knowingly receiving and using stolen funds.
ICG is a tax consulting business based in Dallas that focuses on tax valuation of properties and the maintenance of tax portfolios. As part of their business ICG, on behalf of their clients, pays taxes on home mortgages and provides valuations of properties in order to contest tax appraisals.
As part of her duties, Phillips had access to ICG’s financial software, could prepare checks on behalf of ICG and was responsible for cashing and mailing checks to ICG’s customers. Phillips began the scheme to defraud ICG in March 2012, following a conversation with her good friend, Willis.
The FBI investigated and Assistant U.S. Attorney P. J. Meitl prosecuted.
align="right">
Ketchikan Man Indicted by Federal Grand Jury for Receipt and Possession of Explosive Materials by a FelonRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Ketchikan man was indicted by a federal grand jury in Anchorage for receipt and possession of explosive materials by a prohibited person.
Joseph Duane Brown, 39, of Juneau, Alaska, was charged in a one-count indictment that on or about July 4, 2013, while having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly receive and possess, in an affecting interstate and foreign commerce, explosive materials, specifically perchlorate explosive mixture and cap sensitive ammonium nitrate explosive mixture.The defendant was arraigned before Magistrate Judge Leslie C. Longenbaugh on August 15, 2014, and was ordered detained pending trial. Trial is currently scheduled for October 7, 2014.
According to Assistant United States Attorney Jack S. Schmidt, Brown faces a maximum sentence of ten years of imprisonment, $250,000 fine, and up to 3 years of supervised release for receipt and possession of explosive materials by a prohibited person. The actual sentence of the defendant will depend on the actual circumstances of the case and the criminal history, if any, of the defendant.
The case was investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Justice Department Settles Immigration-Related Discrimination Claim Against Staffing AgencyRead the Press Release
The Justice Department reached an agreement today with Real Time Staffing Services LLC, doing business as Select Staffing, a company based in Santa Barbara, California. The settlement resolves the department’s claims that Select Staffing discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation, which was initiated based on a referral from the U.S. Citizenship and Immigration Services (USCIS), concluded that members of the company’s staff required non-U.S. citizens, but not similarly-situated U.S. citizens, to present specific documents during the employment eligibility verification process to establish their work authority. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the employment eligibility verification process based on their citizenship status or national origin.
Under the settlement agreement, Select Staffing will pay $230,000 in civil penalties to the United States, create a $35,000 back pay fund to compensate individuals who may have lost wages due to the company’s practices and undergo training on the anti-discrimination provision of the INA. Certain Select Staffing branches will be subject to departmental monitoring and reporting requirements for a period of three years.
“The Civil Rights Division is committed to protecting work authorized individuals from discriminatory practices in the employment eligibility verification process,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “We commend Select Staffing for working cooperatively with the division to resolve this matter.”
The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits, among other things, citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee, document abuse, retaliation and intimidation.
For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Applicants or employees who believe they were subjected to different documentary requirements based on their citizenship status, immigration status or national origin, or discrimination based on their citizenship status, immigration status or national origin in hiring, firing, or recruitment or referral, should contact OSC’s worker hotline for assistance.
Justice Department Asks Court to Dismiss Oakley Training School Case After Conditions for Confined Youth Improved Under Consent DecreeRead the Press Release
Today, the Justice Department asked a federal court to dismiss its case involving Oakley Training School in Raymond, Mississippi, because the state of Mississippi and the Division of Youth Services have significantly improved conditions for confined youth at Oakley. The reforms, implemented under a consent decree, resulted in increased protections to prevent harm to youth, improved suicide prevention practices, improved medical, dental and mental healthcare, increased rehabilitative services and improved special educational services.
In 2003, the department notified Mississippi that conditions at the Oakley Training School and the Columbia Training School violated the constitutional rights of confined youth. In 2005, the department and state officials entered into a settlement agreement to implement many reforms related to legally-required services and protections for confined youth. The parties appointed independent monitors to oversee these reform efforts at Oakley and Columbia and to provide technical assistance to facility officials. The state closed Columbia in 2008, leaving Oakley as the only facility in the case.
During the course of the settlement agreement’s corrective action period, state officials have made steady progress toward improving conditions of confinement at Oakley. On May 8, 2014, the monitor issued her 21st report indicating that the state had achieved and maintained substantial compliance with all required remedial measures in the settlement agreement. The department agrees with the monitor’s assessment.
“We commend the state of Mississippi and the Division of Youth Services for their commitment to protecting confined youth in its custody,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “These improvements will help to ensure that safety, security, and required services are provided to all Oakley youth in a sustainable manner.”
“We are pleased that the state of Mississippi and the Division of Youth Services have been diligent about improving the conditions for youth confined at the Oakley Training School,” said U.S. Attorney Gregory K. Davis for the Southern District of Mississippi. “The implemented reforms will benefit the youth confined at Oakley.”
The department initiated this investigation under the Civil Rights of Institutionalized Persons Act, and the Violent Crime Control and Law Enforcement Act of 1994. Both statutes give the department the authority to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt
Jefferson City Woman Sentenced for Meth, Mail Theft ConspiraciesRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., woman has been sentenced in federal court in two separate and unrelated federal cases, for her role in a large-scale conspiracy to distribute methamphetamine in the Cole and Callaway County area and for her role in a conspiracy to steal mail.
Tami Jo Zeugin, 39, of Jefferson City, was sentenced by U.S. District Judge Beth Phillips on Thursday, Aug. 14, 2014, to 10 years in federal prison without parole.
Conspiracy to Distribute Methamphetamine
On Jan. 9, 2014, Zeugin pleaded guilty to her role in a conspiracy to distribute methamphetamine.
Zeugin admitted that she sold 6.2 grams of methamphetamine to a confidential informant during a controlled purchase on April 18, 2012. On May 3, 2012, Jefferson City police officers conducted a traffic stop on a vehicle that was reported stolen. The vehicle was driven by Zeugin, who was arrested and searched. She was found to possess $2,893 in cash. During a search of the car, officers located a zipper bag under the driver’s seat. This bag was found to contain syringes, plastic bags, and four plastic bags containing a total of 21.98 grams of methamphetamine.
Co-defendant Mitchell Lynn Atterberry, 36, of Eldon, was sentenced on Jan. 23, 2013, to 20 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy. According to Zeugin, Atterberry had been dealing with a Mexican source of methamphetamine in the Kansas City area for approximately two years, and she traveled with Atterberry on numerous occasions to buy methamphetamine from that source.
During a series of investigations and traffic stops – including two high-speed chases – in 2011 and 2012, Atterberry was found to be in possession of over 20 grams of methamphetamine, more than $17,000, drug ledgers and a loaded handgun.
The total methamphetamine seized from Atterberry and Zeugin during the course of the investigation is 54.14 grams. Officers also seized a total of $20,939.
Conspiracy to Steal Mail
In a separate and unrelated case, Zeugin also pleaded guilty on Jan. 10, 2014, to her role in a conspiracy to steal mail. Law enforcement officers learned that a $960 check had been stolen from the mail, altered, and cashed by another person at Zeugin’s request.
When Zeugin was arrested in November 2012, she had numerous checks not made out to her along with mail items addressed to other people in her purse. Additional mail was also located within the residence.
The total loss attributable to the check-stealing conspiracy was $5,918.
These cases were prosecuted by Assistant U.S. Attorney Lauren Kummerer. They were investigated by the Drug Enforcement Administration, the Jefferson City, Mo., Police Department, the Columbia, Mo., Police Department, the Holts Summit, Mo., Police Department, the Fulton, Mo., Police Department, the Mid-Missouri Drug Task Force, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group), the Missouri State Highway Patrol, the Cole County, Mo., Sheriff’s Department, the Morgan County, Mo., Sheriff’s Department and the U.S. Marshal’s Service, the U.S. Postal Inspection Service, the Callaway County, Mo., Sheriff’s Department, the Desoto, Mo., Police Department and the Deslodge, Mo., Police Department.Houston Woman Pleads Guilty to Making Threat Against President ObamaRead the Press Release
HOUSTON – Teddy Bear Paradise, formerly known as Denise O’Neal, 56, has entered a guilty plea to one count of making a threat against President Obama, announced United States Attorney Kenneth Magidson.
At the hearing today, Paradise admitted to mailing a letter to President Obama in which she told him that she was coming to Washington D.C. to murder him. She also admitted to telling two Secret Service agents of her intention to kill the President, claiming that if she could not do it, she would find someone else to murder.
Sentencing is set for Nov. 7, 2014, before U.S. District Judge Gray H. Miller. At that time, she faces up to five years in federal prison and a possible $250,000 fine. She will remain in custody pending that hearing.
The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Julie Searle is prosecuting.
Hill District Felon Sentenced in Gun CaseRead the Press Release
PITTSBURGH – On Aug. 14, 2014, a Pittsburgh resident was sentenced in federal court to 36 months imprisonment followed by three years supervised release on his conviction of a federal firearms violation, United States Attorney David J. Hickton announced today.
Senior United States District Judge Terrence F. McVerry imposed the sentence on Kedrin Lee Turner a/k/a Hoody, 39, of Pittsburgh, Pa.
According to information presented to the court, Turner dropped his shoes and a loaded 9mm Glock pistol as he fled from police on June 24, 2010. Federal law prohibits convicted felons such as Turner from possessing a firearm or ammunition.
Prior to imposing sentence, Judge McVerry made several legal decisions which resulted in Turner’s guideline range being 33-41 months. The Court then sentenced Turner to 36 months of incarceration and an additional three years of supervision.
Assistant United States Attorneys Ross E. Lenhardt and Barbara K. Doolittle prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Turner.
Fort Yates Man Pleads Guilty to Sexual AssaultRead the Press Release
BISMARCK - U. S. Attorney Timothy Q. Purdon announced that on Aug. 15, 2014, Austin Agard, 27, Fort Yates, N.D., pleaded guilty before U. S. District Judge Daniel L. Hovland to a charge of sexual assault.
On Dec. 16, 2013, the Bureau of Indian Affairs in Fort Yates received a call from the hospital that a female had reported being raped while at her Fort Yates residents. The victim was able to identify the individual as Agard. Agard was questioned and admitted that he sexually assaulted an individual incapable of consenting to sexual activity.
Agard faces a sentence of up to life in prison, five years to life of supervised release, and a $250,000 fine.
Sentencing for Agard is set for Dec. 1, 2014, at 10:00 a.m. in U. S. District Court Bismarck.
The case was investigated by the Bureau of Indian Affairs – Standing Rock Agency.
Assistant U. S. Attorney Gary Delorme is prosecuting the case.
Former Student Pleads Guilty to Cyberstalking UMKC InstructorRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former student at the University of Missouri-Kansas City has pleaded guilty in federal court to cyberstalking a faculty member.
Kenna Haight, 27, of Virginia Beach, Va., a former student at UMKC, pleaded guilty before U.S. Chief District Judge Greg Kays on Thursday, Aug. 14, 2014, to the charge contained in a Dec. 11, 2013, federal indictment.
Haight repeatedly sent e-mail messages to a UMKC instructor from Oct. 1, 2013 to Dec. 11, 2013, which she admitted would be reasonably expected to cause substantial emotional distress to the instructor or her family. Haight admitted that her messages and attempts to communicate with the instructor were done despite repeated requests from the instructor herself, UMKC administrators and law enforcement officers to stop.
On Oct. 4, 2013, the instructor obtained an Ex Parte Order of Protection, which prohibited Haight from communicating in any way with the instructor and included specific orders to not threaten or harass the instructor. On Nov. 21, 2013, FBI agents interviewed Haight. Haight admitted sending the emails to the instructor. Haight was instructed again to stop trying to contact the instructor.
On Dec. 3, 2013, Haight called and made a false report to the Missouri Child Abuse and Neglect Hotline. As a result of that report, a social worker interviewed the instructor and the instructor’s children about the false complaint, causing them substantial emotional distress.
The e-mails Haight sent to the instructor included the following comments, among many other threatening statements:
- “I keep having homicidal fantasies that me keep me up at night around you.”
- “Am I in the backseat of your car ready to slit your carotid artery? Am I in the closet at your house in [city of the UMKC Instructor’s residence]? Am I underneath your car ready to cut your achilles heal? Are your lug nuts secure on your car??”
- “I don’t deal with anger and irritation well…people who cross me wind up living to regret it. Want to be on my list???”
- “I seriously want to hurt you, you know that?”
- “…you may find yourself tied to your own bed in your own home begging for mercy. Or having your tongue cut out and your spinal cord cut paralyzing you for life so that you can never walk or speak again. Who knows what the universe has in store for you. If someone invades your home and cuts out your tongue…not my fault. Wishful thinking.”
Under federal statutes, Haight is subject to a mandatory minimum sentence of one year in federal prison, up to a sentence of five years in federal prison without parole, plus a fine up to $250,000. 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 Matthew P. Wolesky. It was investigated by the FBI.
Former St. Joseph Man Sentenced to More Than 7 Years in Prison for Philippine Gold Scam and Failure to File Tax ReturnsRead the Press Release
Freeman Carl “Buck” Reed Defrauded Victims of $1.3 Million Pitching a Bogus Philippine Gold Investment and Failed to File Tax Returns for 10 Years
GRAND RAPIDS, MICHIGAN – Freeman Carl “Buck” Reed, 45, formerly of St. Joseph, Michigan, was sentenced to 87 months in federal prison for failing to file income tax returns and committing a fraud scheme involving gold bars he told investors were buried in the Philippines. He was ordered to pay $1.3 million in restitution to the fraud victims, and more than $500,000 in restitution to the Internal Revenue Service. The Honorable Janet T. Neff, U.S. District Judge, imposed the sentence.
U.S. Attorney Patrick Miles, Jr. said, “Reed’s failure to file tax returns or pay any taxes -- particularly in light of his extravagant lifestyle -- was an insult to decent, tax-paying citizens everywhere. The fraud he perpetrated was deplorable abuse of trust. This office will continue to vigorously prosecute those involved in these kinds of crimes.”Reed was convicted of failure to file tax returns following a jury trial in February 2014. At trial, the jury heard evidence that Reed had not filed any tax returns -- or paid any taxes -- for almost 10 years, despite making more than $1 million in just a three year period and living an extravagant lifestyle that included five luxury vehicles and an expensive house.
Shortly after the tax trial, Reed pled guilty to the Philippine gold fraud. He admitted that, after his direct-marketing business failed, he engaged in a scheme to defraud investors by soliciting money from investors to recover “Yamashita’s gold,” a legendary gold hoard supposedly left behind by Japanese soldiers when they were defeated by the U.S. Army at the end of World War II. Desperate for money, Reed told investors that he and a co-conspirator had located the gold and would use their money to finance the gold extraction costs. He told other investors that he had access to “gold certificates” supposedly worth millions of dollars. Reed was able to obtain $1.3 million in connection with the two schemes. Instead of using the investors’ money as promised, Reed admitted that he spent it on himself so that he could maintain his façade of wealth.
“Mr. Reed was not selling an investment; instead, he developed an elaborate hoax meant to enrich himself. The prosecution and sentencing of Mr. Reed, who diverted investor’s funds for his benefit and then intentionally failed to file income tax returns, is a fundamental element in maintaining public confidence in our tax system,” said IRS Acting Special Agent in Charge Jarod Koopman.
“For nearly a decade, Mr. Reed failed to file tax returns and defrauded investors of well over $1 million, all while lining his own packets and living an extravagant lifestyle”, stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The prosecution of Mr. Reed holds him accountable for his years of criminal conduct, and the FBI will continue to partner with the IRS to bring to justice those who commit these brazen financial crimes.”
The case was investigated by the FBI and IRS and prosecuted by Assistant U.S. Attorneys Clay Stiffler, Michael MacDonald, and Matthew Borgula.
END
Former Owner of Los Angeles Medical Clinic Management Company Pleads Guilty in $3.2 Million Medicare Fraud SchemeRead the Press Release
The former owner of a Los Angeles medical clinic management company pleaded guilty today in connection with his role in a scheme to defraud Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Stephanie Yonekura of the Central District of California and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.
Mihran “Mike” Meguerian, 37, of Glendale, California, pleaded guilty before U.S. District Judge Beverly R. O’Connell in the Central District of California to one count of conspiracy to commit health care fraud.
According to court documents, Meguerian owned Med Serve Management (Med Serve), a medical clinic management company located in Van Nuys, California. Meguerian admitted that from approximately July 2008 through February 2009, he engaged in a conspiracy to commit health care fraud, in part through the operation of Med Serve. Meguerian admitted that he oversaw medical clinics that wrote prescriptions for medically unnecessary power wheelchairs and other durable medical equipment (DME). Meguerian and his co-conspirators then sold the prescriptions to DME supply companies, knowing that the prescriptions were fraudulent. The DME supply companies submitted the fraudulent prescriptions to Medicare in false and fraudulent claims.
From approximately July 2008 through February 2009, DME supply companies submitted approximately $3,367,661 in fraudulent claims to Medicare using fraudulent prescriptions from Meguerian’s clinics, and Medicare paid approximately $1,438,760 for those claims. Meguerian’s sentencing is scheduled for Nov. 17, 2014.
This case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, which is supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. This case is being prosecuted by Trial Attorneys Fred Medick and Blanca Quintero of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Former Medical Resident Sentenced to Child Pornography ChargesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paula Reid Reid, Special Agent in Charge, United States Secret Service (USSS), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Daniel J. Oates, Chief, Miami Beach Police Department, announce that U.S. District Judge Robert N. Scola sentenced Daniel Bays, 30, of Clermont, to 52 months in prison, followed by 25 years of supervised release and registration as a sex offender.
In October 2013, officers of the Miami Electronic Crimes Task Force (MECTF) of the USSS and ICE-HSI identified a user on a peer-to-peer file-sharing network who was in possession of files indicative of child pornography. Through investigation, agents identified that Bays, an anesthesiology resident at Jackson Memorial Hospital, was the user.
Through additional investigation, agents determined that the files in Bay’s digital folder matched files that were known to depict child pornography. From approximately August 7, 2013, through December 4, 2013, the shared folder associated with Bay’s username had displayed over 700 videos with titles indicative of child pornography.
On December 11, 2013, MECTF, assisted by the Miami Beach Police Department, executed a federal search warrant at Bay’s residence, located in Miami Beach. Inside the residence, the agents found Bay’s laptop computer. After conducting a forensic analysis of the computer, law enforcement found images and videos that depicted child pornography that had been downloaded using a peer-to-peer file-sharing program.
On January 10, 2014, a federal grand jury sitting in the Southern District of Florida returned a one-count indictment, charging Bays with possessing child pornography. On April 14, 2014, Bays pled guilty to this crime.
Mr. Ferrer commends the investigative efforts of USSS, ICE-HSI and the Miami Beach Police Department for their assistance and their work on this case. The case is being prosecuted by Assistant U.S. Attorney Cristina Moreno.
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 Hanover CEO Sentenced in $18 Million Ponzi SchemeRead the Press Release
Trio Bilked More Than 125 Investors
NASHVILLE, Tenn. – August 15, 2014 - Terry Kretz, 61, of Gallatin, Tenn. and the former CEO of Hanover Corporation, was sentenced today by U.S. District Judge Todd J. Campbell to 168 months in prison, followed by three years of supervised release, for orchestrating an $18 million Ponzi scheme, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Judge Campbell also ordered Kretz to pay $14,784,983.75 in restititution.
Kretz was indicted on November 4, 2009 and pleaded guilty on January 31, 2014, to securities fraud, mail fraud, money laundering, and conspiracy to commit securities fraud, wire fraud and mail fraud.
“Those who prey on the investing public can rest assured that the U.S. Attorney’s Office will mount an exhaustive and thorough prosecution to ensure that justice is served,” said U.S. Attorney David Rivera. “After convictions are obtained, we will be equally aggressive during the penalty phase and seek appropriate punishment on behalf of those who suffer financial distress as a result of the fraud.”
According to court documents, Kretz carried out the scheme along with two other defendants, both of whom have also pleaded guilty: Daryl Bornstein, 55, a Hanover salesman from Kingston Springs, Tenn. and Robert Haley, 55, Hanover’s chief financial officer and a Lebanon, Tenn. resident.
The fraudulent scheme was carried out from January 2004 through August 2006. During that period, Kretz offered clients the opportunity to invest in Hanover through promissory notes bearing high interest rates. Through representations in the promissory notes, as well as his own discussions with investors, Kretz told clients that their money would be used for specific purposes, such as investing in stock options and startup companies. In fact, as Kretz knew, more than half the money invested in Hanover went to repay earlier investors, to pay Hanover’s salaries and overhead, or to benefit him or other defendants personally. Such personal benefits included the purchase of a $600,000 residential building lot in the name of Kretz personally, contributing more than $176,000 to a church, and paying for golf memberships.
Kretz and Bornstein also issued Hanover promissory notes to reimburse individuals who had previously lost money investing in ventures recommended by Bornstein before he joined Hanover. In some cases, these old investors contributed new money to Hanover, while in other cases, they invested nothing. In both cases, money from new investors in Hanover was used to make payments on promissory notes issued to cover non-Hanover losses without the Hanover investors’ knowledge.
Bornstein and Haley are scheduled to be sentenced on August 25, 2014.
The case was investigated by the FBI, the IRS-Criminal Investigation, the Tennessee Bureau of Investigation, and the Tennessee Department of Commerce and Insurance. The case is being prosecuted by Assistant U.S. Attorney Scarlett S. Nokes of the Middle District of Tennessee and Trial Attorney Justin Goodyear of the Criminal Division’s Fraud Section.
Former Great Falls Dentist Sentenced for 1 Million in Tax FraudRead the Press Release
GREAT FALLS - A former Great Falls dentist has been sentenced to 40 months imprisonment and two years supervised release for tax evasion. James Zander, 63, of Great Falls, Montana was sentenced Friday in federal court in Great Falls, Montana, for criminal conduct resulting in a tax debt of over one million dollars.
In a sentencing memo filed by Assistant U.S. Attorney Chad Spraker, the government told the court that from 2002 to 2010 the defendant, James Zander, evaded his 2001 tax liability through several means, including filing a return filled with zeros and funneling income from his dental practice to a various entities. Zander also obstructed IRS collection efforts by sending notices and demands to government employees and filing a frivolous lawsuit against an IRS Revenue Agent. Zander also failed to file legitimate tax returns for the 2002 to 2009 tax years, incurring a total tax debt of over $1 million.
Zander last filed a legitimate individual income tax return for the 2000 tax year. He then told his tax return preparer that he found a method for not filing his tax returns. The preparer warned Zander on multiple occasions that he should be filing. Zander's tax preparer prepared a 2001 individual income tax return and a Form 1120S for Zander's solely owned corporation, Dental Care of Great Falls. Zander did not file the individual 2001 return but did sign and file the corporate return.
On February 20, 2002, Zander formed Solid Rock Partners, LP; on July 16, 2003, he formed Royal Priesthood Society (RPS), a corporation sole; and on June 10, 2008, he formed American Humanitarian Project another corporation sole. Zander opened bank accounts for RPS, Rock Solid, and American Humanitarian Project. From 2002 to 2009, Zander purchased five parcels of land in the name of Solid Rock Partners and RPS. Zander maintained two bank accounts for Dental Care.
On February 17, 2004, Zander filed a 2001 individual income tax return listing zeros in each section for his income, adjusted gross income, and tax liability. The return requested a $27,131 refund for the amount he had withheld. He also attached a two-page document espousing tax defier arguments. In later years Zander either filed a return filled in with zeros or no return at all.
In July 2004, the IRS sent Zander a letter informing him that his 2001 return was frivolous and warned him of the consequences of not paying his taxes. Based upon the 2001 Form 1120S for Dental Care, a W-2 issued to Zander, and other documents received by the IRS, the IRS assessed Zander's 2001 tax liability at $100,972.81 total liability as of March 10, 2010. In May 2006, the IRS again warned him of the consequences of failing to pay his taxes.
In December 2007 and January 2008, the IRS issued notice of levies to Zander with respect to his bank accounts at Stockman Bank. In response, Zander sent letters to Stockman Bank asserting that the levies were unlawful and he is not subject to taxation. After the IRS collected approximately $2,000 from the levies, Zander closed the accounts.
On October 23, 2009, and November 2, 2009, Zander sent the U.S. Treasury Secretary two $300 million "Private Indemnity Bonds" purporting to offset his pre-existing and future liabilities. The IRS placed liens on Zander's property at the Cascade County Clerk and Recorder's Office. An IRS Revenue Officer delivered three letters to Zander warning of IRS collection for 2001 and 2005. Zander responded with an October 19, 2009, letter espousing tax defier arguments. The following month, Zander sent the officer a document making a claim against Murray for several million dollars.
Zander made approximately $2.9 million in unreported income from 2001 to 2009.
Former Columbus Police Officer Sentenced for Embezzling from Defense Department Surplus ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS—Former Columbus Police Officer Steven Edward Dean, 50, of Columbus, was sentenced in U.S. District Court to 30 months in prison for misappropriating and selling heavy equipment and other property the Columbus Division of Police received through a Department of Defense surplus program.
Carter M. Stewart, U.S. Attorney for the Southern District of Ohio; Kevin Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI); Brian Reihms, Special Agent in Charge, Defense Criminal Investigative Service (DCIS); and Columbus Police Chief Kim Jacobs announced the sentence handed down today by U.S. District Judge Michael H. Watson.
According to court documents, an investigation by the Columbus Division of Police, the FBI and DCIS concluded that between October 1, 2005 and June 1, 2012, Dean diverted property with a fair market value of $251,570.94 the police department had received from the Defense Reutilization Marketing Office (DRMO) program.
The embezzled items included $133,554.59 of heavy equipment, construction equipment, and vehicles; restaurant equipment; $94,163.25 of materials sold for scrap; and $16,353.15 worth of items, including diesel generators, sold to private persons. This conclusion was based on records obtained from the U.S. Department of Defense DRMO program, the state of Ohio offices involved with the DRMO program, scrapyard receipts, Craigslist online point-of-sale website records, restaurant supply records of sold equipment, and by viewing the items of property themselves.
“This is a major theft and embezzlement case involving a uniformed police officer stealing from his own department and involving property which should have otherwise been used to assist law enforcement, and all the equipment and vehicles were originally purchased with taxpayer dollars,” Assistant U.S. Attorneys Doug Squires and Deborah Solove told the court prior to sentencing.
"Today's sentencing demonstrates the Defense Criminal Investigative Service's ongoing commitment to combating fraud and corruption that impacts the Department of Defense's vital programs and operations," said Brian Reihms, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), "DCIS, with our partner agencies, will continue to work tirelessly to investigate fraud involving the DoD's DRMO Law Enforcement Support Office which transfers excess property to law enforcement organizations across the United States."
Dean pleaded guilty in February to one count of embezzlement from a program receiving federal funds and one count of theft of public property. Under terms of the plea agreement, Dean will forfeit $251,570.94 less the value of the recovered equipment. Dean was also sentenced to three years of supervised released following imprisonment.
U.S. Attorney Stewart commended the investigation by DCIS, the FBI, and CPD, as well as Assistant U.S. Attorneys Doug Squires and Deborah Solove, who prosecuted the case.
Five Indicted in Des Moines Property Flipping InvestigationRead the Press Release
DES MOINES, IA - United States Attorney Nicholas A. Klinefeldt announced the indictment of five people for bank fraud based on their participation in a fraudulent property flipping scheme. The defendants are Nathan Smith, Patrick Steven, Jason Springer, Rick Makohoniuk, and Jerod Hogan.
The indictment alleges that the defendants engaged in a scheme to defraud financial institutions from approximately March 2009 to March 2011, in a scheme involving approximately eighteen homes in and around Des Moines, Iowa, and a loss of approximately $400,000.
According to the indictment, Smith and Steven were property flippers who negotiated short sales with lenders on behalf of homeowners. The indictment alleges that, without the lenders’ knowledge, Smith and Steven also purchased the homes in the short sales, and that they and the other defendants deceived the lenders into believing that the price Smith and Steven paid in the short sale was the fair market value. In fact, according to the indictment, without the lenders’ knowledge, Smith and Steven immediately resold the homes for a profit. Springer, a Des Moines attorney, is alleged to have furthered the scheme by conducting the fraudulent real estate closings and collecting a commission for his work. Makohoniuk, a realtor, is alleged to have submitted false documents to a lender with respect to one of the homes involved in the scheme, and Hogan, a mortgage broker, is alleged to have provided Smith and Steven with false documents that were used to deceive lenders.
Steven, Springer, Makohoniuk, and Hogan were arraigned today in federal court, and the trial has been scheduled for September 29, 2014. Smith’s arraignment is scheduled for August 29, 2014.
The investigation was conducted by the Department of Housing and Urban Development – Office of Inspector General and Federal Bureau of Investigation.
In accordance with the Iowa Rules of Professional Conduct, the public is reminded that an indictment is merely accusations, and that the defendants are presumed innocent until and unless proven guilty. Additionally, because this matter is pending in the United States District Court, the United States Attorney’s Office does not anticipate making any further comment or statement at this time.
(Download Press Release )
Federal Officials to Announce Filing of Significant Federal IndictmentRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez and Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division will hold a press conference to announce the filing of a significant federal indictment TODAY, AUG. 15, 2014 AT 11:00 A.M. at the U.S. Attorney’s Office. No further information will be released until the press conference.
WHO: U.S. Attorney Damon P. Martinez for the District of New Mexico Special Agent in Charge Carol K.O. Lee, FBI’s Albuquerque Division WHAT: Press conference to announce the filing of a significant federal indictment. WHEN: FRIDAY, AUGUST 15, 2014, 11:00 A.M. WHERE: U.S. Attorney’s Office 10th Floor Multi-Media Room (Reception on 9th Floor) 201 Third Street NW Albuquerque, NM 87102 OPEN PRESSNOTE: All media must present government-issued photo ID (such as driver’s license) as well as valid media credentials. Media may begin to arrive at 10:30 a.m. Press inquiries regarding logistics should be directed to Jessica Masoner at 505-224-1448 or [email protected].
Federal Court Sentences Burlington Man on Charge of Felon in Possession of A FirearmRead the Press Release
DAVENPORT, IA- On August 15, 2014, Christopher Lakeith McAfee, age 37, from Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 84 months imprisonment, after pleading guilty to felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. McAfee was also ordered to serve three years of supervised release following the imprisonment and pay $100 towards the Crime Victims Fund.
On September 10, 2013, a Davenport, Iowa, police officer heard shots fired from a white Cadillac. As the officer began to follow the vehicle, three additional guns shots were fired out of the sun roof of the Cadillac. Members of the Davenport Police Department conducted a traffic stop of this vehicle and identified three occupants, including back seat passenger Christopher McAfee. Officers observed McAfee make movements in the back seat area of the vehicle and McAfee refused repeated commands to get out of the vehicle. Officers had to physically remove McAfee from the Cadillac and found a .380 caliber handgun accessible through a pass through from the back seat into the trunk. Officers also found and seized a .380 caliber handgun clip from McAfee’s pocket and a box of .380 caliber ammunition on the seat where McAfee had been sitting. Officers later recovered spent shell casings from the street areas where the handgun was fired, which were later matched through ballistics testing to the .380 caliber handgun seized from the Cadillac. Previously, in 2007 McAfee was convicted in Iowa state court of willful injury, a felony offense.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Davenport, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhoods initiative.
(Download Press Release )
Federal Court Sentences Burlington Man on Charge of Felon in Possession of A FirearmRead the Press Release
DAVENPORT, IA - On August 14, 2014, Anthony Darnell Herron, age 23, from Burlington, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 100 months imprisonment, after pleading guilty to felon in possession of a firearm, announced United States Attorney Nicholas A. Klinefeldt. Herron was also ordered to serve three years of supervised release following the imprisonment, pay $2500 in restitution, and pay $100 towards the Crime Victims Fund.
On October 18, 2013, Herron burglarized a residence in Burlington, Iowa, taking several items, including a Taurus .380 caliber handgun. On October 21, 2013, law enforcement officers searched Herron’s residence and recovered stolen items, including the Taurus .380 caliber handgun, a sawed off Mossberg 12 gauge shotgun, and other electronic items. Previously in 2009, Herron had been convicted in Iowa state court of possession with the intent to deliver marijuana and burglary third degree, both felony offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Burlington, Iowa, Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the Project Safe Neighborhoods initiative.
(Download Press Release )
FBI, Justice Officials Announce Next Steps in Federal Civil Rights Investigation in Ferguson, MissouriRead the Press Release
The following joint statement was released Friday by FBI Special Agent in Charge William P. Woods, U.S. Attorney for the Eastern District of Missouri Richard G. Callahan and Acting Assistant Attorney General for the Civil Rights Division Molly Moran:
“At the onset of our federal civil rights investigation, the Attorney General of the United States promised a thorough and complete investigation into the shooting death of Michael Brown. That investigation is proceeding. We can confirm that FBI agents, working together with attorneys from the Justice Department's Civil Rights Division and US Attorney's Office, have already conducted several interviews of witnesses on the scene at the time of the shooting. Over the next several days, teams of FBI agents will be canvassing the neighborhood where the shooting took place to identify any individuals who may have information related to the shooting and have not yet come forward. We ask for the public's cooperation and patience, and again urge anyone with information related to the shooting to contact the FBI. The FBI can be reached at (800) CALL-FBI, option 4.”
El Departamento de Justicia Resuelve un Caso de Discriminación Relacionado con Inmigración en contra de una Agencia de EmpleoRead the Press Release
WASHINGTON – El Departamento de Justicia llegó a un acuerdo hoy con Real Time Staffing Services LLC, que opera bajo la denominación Select Staffing, una compañía con sede en Santa Bárbara, California. El acuerdo resuelve los reclamos del Departamento que Select Staffing discriminó contra individuos autorizados a trabajar que no son ciudadanos estadounidenses, en violación de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del Departamento, iniciada por una referencia del Servicio de Ciudadanía e Inmigración de Estados Unidos (USCIS por sus siglas en inglés), concluyó que Select Staffing sometió a los empleados que no eran ciudadanos estadounidenses, pero que contaban con autorización de trabajo, a exigencias ilegales de presentar documentos específicos para verificar su elegibilidad de empleo, mientras que a los ciudadanos estadounidenses se les permitía presentar los documentos de su elección. La provisión anti-discriminación de la INA prohíbe que los empleadores impongan cargas documentales adicionales a los empleados con autorización de trabajo durante el proceso de contratación y verificación de elegibilidad de empleo con base a su estado de ciudadanía u origen nacional.
Según el acuerdo, Select Staffing le pagará a los Estados Unidos $230,000 en sanciones civiles, creará un fondo de $35,000 para compensar a las personas que puedan haber perdido salarios debido a las prácticas de la compañía y participará en adiestramiento sobre la provisión anti-discriminación de la INA. Ciertas oficinas de Select Staffing estarán sujetas a monitoreo departamental y a requisitos de información por un período de tres años.
"La División de Derechos Civiles se compromete a proteger a las personas autorizadas a trabajar frente a las prácticas discriminatorias durante el proceso de verificación de elegibilidad de empleo," dijo Molly Moran, la Sub-Procuradora General Interina para la División de Derechos Civiles. "Elogiamos a Select Staffing por trabajar en colaboración con la División para resolver este asunto."
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con Inmigración (Office of Special Counsel for Immigration-Related Unfair Employment Practices, OSC por sus siglas en inglés) es responsable de hacer cumplir con la provisión anti- discriminación de la INA. La ley prohíbe, entre otras cosas, la discriminación por causa del estado de ciudadanía o el origen nacional de una persona cuando se contrata, se despide, se recluta o se recomienda por un honorario; el abuso de documentos; y las represalias o la intimidación.
Para más información sobre las protecciones contra la discriminación en el empleo bajo las leyes de inmigración, llame a la línea directa de la OSC para el trabajador, al 1-800-255-7688 (teléfono de texto 1-800-237-2515, para las personas con discapacidades auditivas), o a la línea directa de la OSC para el empleador, al 1-800-255-8155 (teléfono de texto 1-800-237-2515, para las personas con discapacidades auditivas); suscríbase a un seminario por internet gratis en www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico a [email protected]; o visite el sitio del internet de OSC en www.justice.gov/crt/about/osc.
Los solicitantes o empleados que creen que han sido sometidos a requisitos documentarios diferentes por causa de su estado de ciudadanía, estado de inmigración u origen nacional, o discriminación por causa de su estado de ciudadanía, estado de inmigración u origen nacional, en la contratación, el despido, el reclutamiento o la recomendación por un honorario, deberán comunicarse a la línea directa de la OSC para el trabajador para recibir ayuda.
Eastern Kentucky Pharmacies and Treatment Programs to Pay Federal Government over One Million Dollars to Settle Allegations of Improper Record Keeping of Prescription DrugsRead the Press Release
The Pharmacies and Treatment Programs will no longer have authority to dispense prescription drugs
PIKEVILLE, KY -Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and James V. Allen, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), jointly announced today that the federal government has reached settlements, worth more than a million dollars, with multiple Eastern Kentucky treatment programs and two pharmacies, to settle allegations that they failed to maintain accurate records of their controlled substances.
“The regulatory scheme governing the handling of controlled substances is designed to insure that these powerful drugs are used only for appropriate medical purposes,” said U.S. Attorney Harvey. “These vital safeguards are compromised and our communities are put at greater risk when medical professionals entrusted to prescribe or dispense these drugs do not meet their obligations under the Controlled Substances Act. The substantial penalties paid in these cases are consistent with the importance of strict compliance with the Controlled Substances Act by all DEA registrants.”
The Perry County Treatment Center, LLC; Pike County Treatment Center, LLC; and Paintsville Professional Associates, LLC, and one of its doctors, agreed to pay a total of $525,000 to settle claims that they violated the Controlled Substance Act. This is believed to be the largest penalty ever obtained by the U.S. Attorney’s Office in the Eastern District of Kentucky, in a civil case involving methadone treatment programs. Additionally, MedZone Pharmacy and Neighborhood Pharmacy, both in Prestonsburg, Ky., each agreed to pay $250,000 for similar violations. The facilities involved in the settlements surrendered their DEA registration number and will no longer have the authority to possess or dispense controlled substances.
The government contended that a DEA audit of the treatment programs and pharmacies revealed shortages and overages of prescription drugs and incomplete and inaccurate records. DEA agents found the facilities had improperly documented the type of drug, the dosage strength, the name of drugs, or the amount of the drugs they were dispensing. The investigations were initiated by the DEA’s London, Ky., office, after it had monitored drug sales data reported by distributors and wholesalers.
Under federal law, the DEA supplies medical professionals with a registration number that authorize them to possess, prescribe and dispense certain controlled substances, such as Methadone, Oxycodone, Hydrocodone, Lortab and others. The DEA also has the authority to perform audits and inspections to ensure that clinics, pharmacies and treatment programs properly document drug transactions, including the amount of controlled substances dispensed, discarded, and received.
Assistant U.S. Attorney Andrew Sparks litigated this case on behalf of the federal government.
Detroit One Collaboration Leads to Indictment of TwoAdditional Latin Count Gang Members on Racketeering ChargesRead the Press Release
A superseding indictment was unsealed yesterday charging Devin Dantzler, 23, of Ecorse, with using and carrying a firearm in furtherance of a crime of violence causing death and murder in aid of racketeering. Christopher Pierce, 20, of Detroit, was also charged with assault resulting in serious bodily injury in aid of racketeering announced Barbara L. McQuade.
McQuade was joined in the announcement by Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office.
Specifically, the indictment alleges that several Latin Counts assaulted Mustafa Al-Yasiry, and Dantzler, in fact, shot and killed him at the Big Apple Market in southwest Detroit on April 18, 2014. According to the indictment, the Latin Counts gang operates in southwest Detroit and the downriver communities of Lincoln Park and Ecorse. The indictment alleges that seven defendants committed assaults, murder, selling illegal narcotics and stolen firearms, breaking and entering homes and businesses and robbery. The indictment alleges that the gang uses violence to stake out its “turf” and intimidate both rival gang members and the citizens of southwest Detroit.
Under the Detroit One Initiative, and through the lead efforts of the Detroit Police Department and the FBI Violent Crime Task Force, investigators were able to merge separate probes of various members of this organization and its activities into one encompassing investigation.
Detroit One is a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. By working collaboratively, local, state, and federal law enforcement is striving to maximize its ability to identify and arrest the persons and groups initiating the violence in Detroit.
Department of Justice Reaches Agreement with the Louisiana Supreme Court to Protect Bar Candidates with DisabilitiesRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Louisiana Supreme Court that will resolve the department’s investigation of the court’s policies, practices and procedures for evaluating bar applicants with mental health disabilities. The department’s investigation found that during the Louisiana bar admissions process licensing entities based recommendations about bar admission on mental health diagnosis and treatment rather than conduct that would warrant denial of admission to the bar.
The settlement agreement ensures the right of qualified bar applicants with mental health disabilities to have equal access to the legal profession as required by the Americans with Disabilities Act (ADA). It prohibits the court from asking unnecessary and intrusive questions about bar applicants’ mental health diagnosis or treatment. It also requires the court to refrain from imposing unnecessary and burdensome conditions on bar applicants with mental health disabilities, such as requests for medical records, compulsory medical examinations or onerous monitoring and reporting requirements. Title II of the ADA prohibits public entities, including licensing entities, from imposing unnecessary eligibility criteria that tend to screen out individuals with disabilities, or imposing unnecessary burdens on individuals with disabilities that are not imposed on others.
The department found that diagnosis and treatment, without problematic conduct, did not effectively predict future misconduct as an attorney and did not justify restrictions on admission. Yet the Louisiana bar admissions process imposed unnecessary burdens on applicants and attorneys based on their diagnosis and treatment, in violation of the ADA. Questions about mental health diagnosis and treatment, such as those used by Louisiana, are counterproductive to licensing entities’ interest in attorney fitness because individuals who would benefit from mental health treatment may be deterred from obtaining it by the knowledge that they will have to disclose their treatment to licensing authorities.
“Today’s agreement will ensure that qualified bar applicants with mental health disabilities are able to pursue their dream of becoming licensed attorneys, without discrimination based on diagnosis or treatment,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Qualified individuals with disabilities, including mental health disabilities, have valuable contributions to make to the legal profession and to their communities. Their diagnosis should not hinder or prevent them from doing so. Though bar licensing entities have the important responsibility of ensuring that all licensed attorneys are fit to practice law, licensing entities must discharge this responsibility in a manner that is consistent with civil rights laws.”
“This agreement is a testament to the United States Department of Justice’s commitment to fighting discrimination against persons with disabilities and further ensures that qualified individuals will have the opportunity to pursue their career goals and make valuable contributions to our community,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana. “The cooperation between the parties in reaching this agreement demonstrates a shared priority of protecting against discrimination.”
Under the agreement, the court will, among other actions:
• Revise its character and fitness screening questions so that they focus on applicants’ conduct or behavior, and ask about an applicant’s condition or impairment only when it currently affects the applicant’s ability to practice law in a competent, ethical and professional manner or is disclosed to explain conduct that may otherwise warrant denial of admission;
• Refrain from imposing unnecessary burdens on applicants with mental health disabilities by placing onerous disability-based conditions on their admission, invading their privacy, or violating their confidentiality;
• Re-evaluate prior and pending applications of applicants who disclosed mental health disabilities under the revised, non-discriminatory procedures set forth in the agreement; and
• Pay $200,000 to compensate a number of affected bar applicants and attorneys.
Since the department’s letter of findings concluding that the court was in violation of Title II of the ADA was issued in February, the court has worked cooperatively with the department to negotiate an agreement and to implement corrective measures.
The department has also raised issues about unnecessary bar application questions related to mental health disabilities with the states of Vermont and Connecticut and with the National Council of Bar Examiners (NCBE). The NCBE revised two of its questions about mental health on February 24, 2014.
More information about this settlement agreement and the obligations of licensing entities under the ADA may be found at www.ada.gov or by calling the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
Department of Justice Closes Criminal Investigation of April 2010 Explosion at Tesoro Refinery with No ChargesRead the Press Release
The United States Department of Justice today closed the criminal investigation arising from the April 2010 explosion at the Tesoro Anacortes refinery that resulted in the deaths of seven Tesoro employees. Shortly after the explosion, federal criminal investigators and prosecutors began an extensive investigation to determine whether federal criminal environmental and worker safety laws and regulations had been violated. The decision to close the case with no criminal charges was shared with the survivors of the victims this morning.
“This tragedy demanded careful and thorough investigation. I am satisfied that the investigators and the experienced environmental attorneys in my office evaluated all the evidence and determined it does not reach the exacting bar for criminal prosecution,” said U.S. Attorney Jenny A. Durkan. “I believe this investigation, as well as those conducted by other agencies, have prompted changes in how the industry conducts itself. We will continue to work with the Chemical Safety Board to ensure a more expedited investigative process to ensure the public is served, the industry is held accountable and justice is done.”
The four year investigation included interviewing past and present employees, reviewing thousands of documents, and consulting with industry experts. In addition, investigators and prosecutors reviewed investigative reports prepared by other investigative authorities, including the United States Chemical Safety and Hazard Investigation Board and the Washington State Department of Labor and Industries. Based on information developed through these investigative efforts, the Department of Justice has concluded there is insufficient evidence to support bringing criminal charges for violating federal environmental and worker safety laws and regulations.
To the extent the investigation uncovered practices or procedures that risked worker safety or the environment, that information was communicated to the company so necessary improvements could be implemented.
Department of Justice Reaches Agreement with the Louisiana Supreme Court to Protect Bar Candidates with DisabilitiesRead the Press Release
The Justice Department announced today that it has entered into a settlement agreement with the Louisiana Supreme Court that will resolve the department’s investigation of the court’s policies, practices and procedures for evaluating bar applicants with mental health disabilities. The department’s investigation found that during the Louisiana bar admissions process licensing entities based recommendations about bar admission on mental health diagnosis and treatment rather than conduct that would warrant denial of admission to the bar.
The settlement agreement ensures the right of qualified bar applicants with mental health disabilities to have equal access to the legal profession as required by the Americans with Disabilities Act (ADA). It prohibits the court from asking unnecessary and intrusive questions about bar applicants’ mental health diagnosis or treatment. It also requires the court to refrain from imposing unnecessary and burdensome conditions on bar applicants with mental health disabilities, such as requests for medical records, compulsory medical examinations or onerous monitoring and reporting requirements. Title II of the ADA prohibits public entities, including licensing entities, from imposing unnecessary eligibility criteria that tend to screen out individuals with disabilities, or imposing unnecessary burdens on individuals with disabilities that are not imposed on others.
The department found that diagnosis and treatment, without problematic conduct, did not effectively predict future misconduct as an attorney and did not justify restrictions on admission. Yet the Louisiana bar admissions process imposed unnecessary burdens on applicants and attorneys based on their diagnosis and treatment, in violation of the ADA. Questions about mental health diagnosis and treatment, such as those used by Louisiana, are counterproductive to licensing entities’ interest in attorney fitness because individuals who would benefit from mental health treatment may be deterred from obtaining it by the knowledge that they will have to disclose their treatment to licensing authorities.
“Today’s agreement will ensure that qualified bar applicants with mental health disabilities are able to pursue their dream of becoming licensed attorneys, without discrimination based on diagnosis or treatment,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “Qualified individuals with disabilities, including mental health disabilities, have valuable contributions to make to the legal profession and to their communities. Their diagnosis should not hinder or prevent them from doing so. Though bar licensing entities have the important responsibility of ensuring that all licensed attorneys are fit to practice law, licensing entities must discharge this responsibility in a manner that is consistent with civil rights laws.”
“This agreement is a testament to the United States Department of Justice’s commitment to fighting discrimination against persons with disabilities and further ensures that qualified individuals will have the opportunity to pursue their career goals and make valuable contributions to our community,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana. “The cooperation between the parties in reaching this agreement demonstrates a shared priority of protecting against discrimination.”
Under the agreement, the court will, among other actions:
- Revise its character and fitness screening questions so that they focus on applicants’ conduct or behavior, and ask about an applicant’s condition or impairment only when it currently affects the applicant’s ability to practice law in a competent, ethical and professional manner or is disclosed to explain conduct that may otherwise warrant denial of admission;
- Refrain from imposing unnecessary burdens on applicants with mental health disabilities by placing onerous disability-based conditions on their admission, invading their privacy, or violating their confidentiality;
- Re-evaluate prior and pending applications of applicants who disclosed mental health disabilities under the revised, non-discriminatory procedures set forth in the agreement; and
- Pay $200,000 to compensate a number of affected bar applicants and attorneys.
Since the department’s letter of findings concluding that the court was in violation of Title II of the ADA was issued in February, the court has worked cooperatively with the department to negotiate an agreement and to implement corrective measures.
The department has also raised issues about unnecessary bar application questions related to mental health disabilities with the states of Vermont and Connecticut and with the National Council of Bar Examiners (NCBE). The NCBE revised two of its questions about mental health on February 24, 2014.
More information about this settlement agreement and the obligations of licensing entities under the ADA may be found at www.ada.gov or by calling the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
Defendants Arraigned on Charges of Conspiracy, Filing False Tax Returns, and Filing False Claims with the I.R.S.Read the Press Release
Damian Jackson and Holly Jackson, of Sterling Heights, Michigan, were arraigned today on charges of conspiracy, filing false tax returns, and filing false claims with the Internal Revenue Service, announced United States Attorney Barbara McQuade.
McQuade was joined in the announcement by Jarod Koopman, Acting Special Agent of the Detroit Field Office of the Internal Revenue Service Criminal Investigation.
According to court documents, Damian Jackson owns Diamond & Associates Enterprises, Inc. and he and Holly Jackson did business as Diamond Tax Services, offering tax preparation services to their clients. Beginning in approximately April 2009 and continuing through April 2010, the Jacksons conspired with one another to defraud the United States by filing false claims for federal income tax refunds for their clients. The Jacksons are also accused of filing false federal income tax returns for themselves.
The Jacksons helped others to obtain payment of false claims for refunds from the Internal Revenue Service (IRS) by preparing and submitting U.S. Income Tax Returns (Forms 1040), falsely claiming substantial 1099-OID income and withholding taxes and claiming refunds. The Jacksons caused more than $1,076,969 in false and fraudulent income tax refund claims to be filed with the IRS. The Jacksons received fees from their clients for preparing the false returns as well as receiving a percentage of the false refunds they caused.
The court documents also allege that the Jacksons filed false Individual Income Tax returns for themselves for the 2007 and 2008 tax years claiming false income tax withholding and requesting refunds of more than $1,045,625 which they knew they were not entitled to. Additionally, Holly Jackson filed a false income tax return for the 2009 tax year, claiming a refund of $141,795, knowing that the claim was false.
“The Jacksons went to elaborate lengths to steal money from the American taxpayers, who are the ultimate victim when anyone commits a tax crime. IRS Criminal Investigation focuses on identifying, investigating and prosecuting abusive return preparers. Every taxpayer should be reminded to exercise caution when selecting a return preparer since it is the taxpayer that is ultimately responsible for the content of their return and the repayment of a fraudulent refund, along with any penalties and interest,” said Acting Special Agent in Charge Jarod Koopman.
This case was investigated by special agents of the Internal Revenue Service Criminal Investigation and is assigned to the White Collar Crime Unit of the United States Attorney’s Office.
Dearborn Heights Woman Pleads Guilty to Filing A False Tax ReturnRead the Press Release
Janey Golani, 54, of Dearborn Heights, Michigan pleaded guilty on August 14, 2014 to willfully filing false tax returns, United States Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Jarod Koopman, Acting Special Agent of the Detroit Field Office of the Internal Revenue Service Criminal Investigation.
Golani entered the guilty plea in United States District Court before Judge Stephen J. Murphy, III. According to the court records, Golani was employed by Hind Oram as the office manager of several companies she owned. The information presented to the court at the time of the plea showed that from 2006 through 2009, Golani began embezzling money from her employer which she used for her personal benefit.
Golani knew that the income from the monies she embezzled was reportable as taxable income on her federal income tax returns. However, she intentionally failed to report this income. Golani filed a 2008 Individual Income Tax Return, Form 1040, knowing that the return was not true and correct and that the amount of income reported on the return was understated by approximately $234,641. By failing to report the embezzlement income, Golani reduced her tax liability by $77,072. Overall, Golani failed to report the embezzled funds on her 2006, 2007, 2008 and 2009 federal income tax returns causing a tax loss of more than $225,000.
“The Internal Revenue Tax Code is clear; income that is derived from illegal sources is subject to income tax. Ms. Golani stole from her employer and filed false tax returns, both serious crimes for which she is being held accountable,” said Acting Special Agent in Charge Koopman.
Sentencing is scheduled for January 9, 2015 at 10 a.m. in front of the Hon. Stephen J. Murphy, III
The case is being prosecuted by Assistant U.S. Attorney Ross MacKenzie. The case was investigated by Special Agents of the Internal Revenue Service Criminal Investigation.
Davenport Man Sentenced on Federal Drug Trafficking OffenseRead the Press Release
DAVENPORT, IA – On August 15, 2014, Michael Taylor, age 42, of Davenport, Iowa, was sentenced by United States District Judge John A. Jarvey for possession with intent to distribute at least 28 grams of cocaine base, and being a felon-in-possession of a firearm and ammunition, announced United States Attorney Nicholas A. Klinefeldt. Taylor was sentenced to 180 months imprisonment on the drug count and 120 months imprisonment on the firearm count, the sentences to run concurrently. He was also ordered to serve four years supervised release on the drug count and three years on the firearm count, concurrently, following the imprisonment and to pay $200 towards the Crime Victims Fund.
Over the course of many years, beginning in the mid-2000’s and continuing until about September 25, 2013, Taylor distributed cocaine base (“crack cocaine”) in the Davenport, Iowa area. During September 2013, law enforcement utilized a confidential informant to complete a series of controlled purchases of crack cocaine from Taylor while under law enforcement surveillance. Immediately after the final controlled purchase on September 25, police arrested Taylor and he had with him both crack cocaine and currency used to complete the controlled purchase.
On September 25, 2013, law enforcement officers executed search warrants for two residences associated with Taylor. At one residence, agents located, among other things, approximately 105 grams of crack cocaine, a loaded .357 Magnum revolver, $6,430 in U.S. currency, and a digital scale. Prior to his possession of the firearm on September 25, Taylor had been convicted of several crimes punishable by imprisonment exceeding one year.
This case was investigated by the Davenport, Iowa, Police Department, the Iowa Department of Narcotics Enforcement, and the U.S. Drug Enforcement Administration. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Davenport Man Sentenced on Federal Drug Trafficking OffenseRead the Press Release
DAVENPORT, IA – On August 15, 2014, Jose Antonio Garcia, age 44, of Davenport, Iowa, was sentenced by United States District Judge John A. Jarvey for possession with intent to distribute cocaine announced United States Attorney Nicholas A. Klinefeldt. Garcia was sentenced to 108 months imprisonment. He was also ordered to serve three years of supervised release following the imprisonment and to pay $100 towards the Crime Victims Fund.
Over the course of many years, beginning in the early 2000’s and continuing until about June 17, 2013, Garcia distributed cocaine in the Davenport, Iowa, area. On June 17, 2013, law enforcement officers executed a search warrant for a residence associated with Garcia and his spouse, co-defendant Leann Perez. At that residence agents located, among other things, over one-half kilogram cocaine, digital scales, and packaging material.
This case was investigated by the Davenport, Iowa, Police Department and the Iowa Department of Narcotics Enforcement. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
DC Man Sentenced to 30 Years and 1 Day for A String of Jewelry Store Robberies in Baltimore, Spotsylvania and RichmondRead the Press Release
RICHMOND, Va. – Lamar Keith Garvin, 49 years old, of Washington, D.C., was sentenced today to 30 years and 1 day in prison for his role in a string of armed jewelry store robberies.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Carl J. Vasilko, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Washington Field Division, made the announcement after the sentence was imposed by United States District Judge John A. Gibney.
A federal grand jury indicted Garvin on August, 20, 2013, on charges of Attempted Interference with Commerce by Robbery and Using and Carrying a Firearm During and In Relation to a Felony Crime of Violence arising out of the January 12, 2013, attempted robbery of the Zales Jewelry Store at Spotsylvania Towne Center. He was arrested on November 4, 2013 and held without bond pending trial. On January 21, 2014, a federal grand jury returned a superseding indictment charging Conspiracy to Interfere with Commerce by Robbery, three additional counts of Interference with Commerce by Robbery and a second charge of Using, Carrying and Brandishing a Firearm During and In Relation to a Felony Crime of Violence.
On May 12, 2014, after opening statements on day-one of his jury trial, Garvin pled guilty to all of the charges in the superseding indictment.
In a proffer of facts made in support of the plea, Garvin admitted that he had committed the crimes charged in the superseding indictment. Specifically, Garvin admitted that between September 2012 and March 25, 2013, he and his coconspirators agreed to rob a number of jewelry stores in the Baltimore, Maryland and Spotsylvania and Richmond, Virginia areas. Garvin admitted that on September 12, 2012, he and Michael Richardson robbed the Zales Jewelry Store in Baltimore County, Maryland and stole approximately $115,499 worth of jewelry. Garvin further admitted that on November 13, 2012, he, Richardson and another coconspirator robbed at gun point the Kay Jewelers in Short Pump Mall, in Henrico County, and stole approximately $341,718 worth of jewelry. Garvin further admitted that on January 12, 2013, he, Richardson and Veronica Smith attempted to rob the Zales at the Spotsylvania Towne Center, but their attempt was foiled by a clerk who apprehended Michael Richardson. Richardson was armed with a firearm during that robbery attempt. Garvin further admitted that on February 18, 2013, he and two other coconspirators robbed the Littman Jewelers in Short Pump Mall, Henrico, County, at gun point and stole $125,000 worth of jewelry. Garvin admitted also that on March 25, 2013, he and two coconspirators robbed the Fink’s Jewelers located at Stony Point, in Richmond, Virginia at gunpoint, and stole approximately $400,000 worth of jewelry.
Two of Garvin’s coconspirators, Michael Richardson, 49, of Washington, D.C., and Veronica Smith, 54, of Washington, D.C. were sentenced earlier this year for their roles in the robberies. Richardson was sentenced to 15 years for his role in three robberies. Smith, who was only involved in one attempted robbery, was sentenced to 87 months of imprisonment.
This case was investigated by the ATF, Henrico County Police Department, Spotsylvania County Sheriff’s Department and the City of Richmond Police Department. Assistant United States Attorney Olivia L. Norman is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:13-cr-141.
Crittenden County, Kentucky, Felon Sentenced to 15 Years in Prison for Possession and Distribution of MethamphetamineRead the Press Release
– Maintained a home in Marion for the purposes of manufacturing, storing and selling Meth
PADUCAH, Ky. – A Crittenden County, Kentucky, convicted felon was sentenced in U.S. District Court this week, by Senior Judge Thomas B. Russell, to 15 years in prison followed by five years of supervised release for multiple charges related to the possession and distribution of methamphetamine announced David J. Hale, United States Attorney for the Western District of Kentucky.
Barry Kenton Beard remains in the custody of the U.S. Marshals Service following sentencing yesterday in Paducah. Beard pleaded guilty to all four charges in the federal indictment on May 15, 2014. According to the plea agreement, Beard admitted that between August 2012, and December 15, 2012, he conspired with others, including Crystal Green and Mitch Duckett, to possess with the intent to distribute 50 grams or more of methamphetamine. Further, Beard admitted that he knowingly aided in the maintenance and use of a home located on Tom Miner Road in Marion, Kentucky, for the purpose of storing and distributing methamphetamine. Beard also admitted to being a convicted felon in possession of a DPMS model A15, .223 semi-automatic rifle. In September, 2010, Beard was convicted in Crittenden County Circuit Court of fleeing or evading police, possession of a controlled substance and tampering with physical evidence. In August, 2004, Beard was convicted of aggravated assault in the 4th degree (spouse abuse) in Crittenden County Circuit Court.
If convicted at trial, Beard could have been sentenced to a combined minimum sentence of ten years in prison and up to and including a maximum sentence of life in prison.
This case was prosecuted by Assistant United States Attorney Mac Shannon and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Kentucky State Police.
Council Bluffs Doctor Sentenced on Federal Child Pornography ChargesRead the Press Release
COUNCIL BLUFFS, IA – On August 15, 2014, Dennis Seaborn Jones, age 69, of Council Bluffs, Iowa, was sentenced to 121 months in prison on federal child pornography charges in U.S. District Court for the Southern District of Iowa , announced United States Attorney Nicholas A. Klinefeldt. Dr. Jones was also ordered to serve ten years of supervised release after imprisonment, to pay a $100,000 fine, and to pay $100 to the Crime Victims Fund.
Jones pled guilty on May 23, 2014, to knowingly possessing child pornography that included images of a prepubescent child or children under 12 years of age. On May 16, 2013, officers of the Council Bluffs, Iowa, Police Department executed a search warrant at Jones’ residence in Council Bluffs. During forensic analysis of seized computers, external hard drives and other electronic equipment, law enforcement located an estimated 1.2 million images and 9,200 videos of child pornography, including pornography containing minors engaged in sexually explicit conduct.
At the time of the plea of guilty, Jones was a duly licensed pediatrician who practiced in a clinic in Council Bluffs, Iowa.
The case was investigated by law enforcement agents with the Council Bluffs, Iowa, Police Department and the Iowa Division of Criminal Investigations. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Convicted Drug Trafficker Arrested and Detained in Federal Custody for Allegedly Attempting to Possess A Kilo of Cocaine with the Intent to DistributeRead the Press Release
PROVIDENCE, R.I. – Jose Ignacio Goris, 39, of Providence, was ordered detained in federal custody today, charged with attempt to possess with the intent to distribute 500 grams or more of cocaine. Goris was arrested on Thursday by DEA Drug Task Force agents moments after he allegedly took custody of what he believed to be a kilogram of cocaine supplied to him by a person he believed to be a drug trafficker. The purported drug trafficker was an undercover DEA Drug Task Force agent.
Goris’ arrest and detention were announced by United States Attorney Peter F. Neronha and Michael Ferguson, Acting Special Agent in Charge of the Drug Enforcement Administration’s New England field division. Goris was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond.
According to information presented to the court, Goris was previously convicted in federal court on drug trafficking charges.
According to an affidavit in support of an arrest warrant and criminal complaint filed with the court, it is alleged that beginning in early May, Goris and an undercover agent posing as a large-scale cocaine supplier from New Jersey engaged in a series of electronically monitored telephone conversations and meetings. Goris allegedly represented that he had engaged in distributing kilograms of cocaine for a long time and requested that the undercover agent supply him with multiple kilograms of cocaine.
According to the affidavit, Goris and the agent met early Thursday afternoon in Warwick, at which time Goris was shown two sham kilograms of cocaine that were hidden inside a secret compartment of an undercover vehicle. After allegedly examining the cocaine and agreeing to a negotiated price of $33,000 for a kilogram of the cocaine, Goris allegedly indicated to the agent that he was leaving to get the funds to purchase a kilogram of cocaine. He allegedly requested that they meet later in the day, closer to Providence.
According to the affidavit, during a telephone conversation late Thursday afternoon, Goris and the undercover agent agreed to meet inside a Cranston home-improvement store. After allegedly renegotiating terms of the transaction, including a price of $35,000 for a kilogram of cocaine, the agent directed Goris to a vehicle in the parking lot which he told Goris contained a bag with a kilogram of cocaine. Goris was arrested by members of the Drug Task Force moments after he allegedly retrieved the bag from the vehicle.
The case is being prosecuted by Assistant U.S. Attorneys Paul F. Daly, Jr. and Ly T. Chin.
West Warwick Police assisted the DEA Drug Task Force in the investigation of this matter.
The DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, IRS, Homeland Security Investigations, Rhode Island State Police and Cranston, East Providence, Pawtucket, Providence, Newport, South Kingstown, Warwick and Woonsocket Police Departments.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Conspirator Pleads Guilty in Scheme Involving Sex Trafficking of A MinorRead the Press Release
Baltimore, Maryland – Charles Hufton, age 26, formerly of Cockeysville, Maryland, pleaded guilty today to conspiracy to commit sex trafficking of a minor.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, in January of 2013, Hufton, a doorman at a nightclub in Baltimore, and co-defendant Rodney Hubert, a registered sex offender in Maryland, recruited girls, some of whom were underage, to engage in prostitution.
Hubert sought a 19-year-old associate to work as a prostitute beginning in December 2012. Hufton and Hubert offered her a commission to recruit a 16-year-old Baltimore resident to perform prostitution. Hubert invited the 16 year old to reside with him. The 16 year old girl had sex with customers on at least five occasions in a Parkville house provided by Hubert, and on at least seven occasions at other locations.
Hubert offered to pay the 16 year old girl $400 dollars to take provocative photos of her wearing lingerie. She posed for the photos, although Hubert never paid her the promised fee. Hufton and Hubert did, however, use these photos to post online prostitution ads. Hufton used his smartphone and email address to create and post online ads for the females’ commercial sex.Hufton and Hubert advertised online that the 16 year old would prostitute at both the Parkville house, as well as other locations of prospective clients. Hufton drove the prostitutes, including the 16 year old, to “out-call” locations and collected a portion of their earnings.
As part of his plea agreement, Hufton must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).Hufton faces a maximum sentence of life in prison. U.S. District Judge George L. Russell III scheduled sentencing for October 24, 2014, at 2:00 p.m.
Rodney Hubert, a/k/a “Noah,” age 39, of Parkville, Maryland previously pleaded guilty to sex trafficking of a minor. Hubert and the government have agreed that if the Court accepts the plea agreement, Hubert will be sentenced to between 168 and 262 months in prison followed by a lifetime of supervised release. Judge Russell scheduled Hubert’s sentencing on September 11, 2014 at 9:30 a.m.
The case was investigated by the FBI-led Maryland Child Exploitation Task Force (MCETF), created in 2010 to combat child prostitution, with members from10 state and federal law enforcement agencies. The Task Force coordinates with the National Center for Missing and Exploited Children and the Maryland State Police Child Recovery Unit to identify missing children being advertised online for prostitution.
MCETF partners with the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
United States Attorney Rod J. Rosenstein praised the FBI, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation, and thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.Buffalo Man Sentenced for Clean Air Act Violation Related to the Kensington Towers ProjectRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Ernest Johnson, 42, of Buffalo, N.Y., who was convicted of violating the Clean Air Act Asbestos Work Practice Standards, was sentenced to two years of probation by U.S. District Court Judge Richard J. Arcara.
Assistant U. S. Attorney Aaron J. Mango and Russell T. Ippolito, Jr., who handled the case, stated that the defendant was the president of Johnson Contracting of WNY, Inc., an asbestos abatement company that was hired to conduct asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex, located at 1827 Fillmore Avenue in Buffalo. In a pre-abatement asbestos survey, each building at Kensington Towers was found to contain 63,000 square feet of regulated asbestos containing material. The asbestos abatement project lasted from June 2009 to January 2010.
During the asbestos abatement of building A-1, the defendant, and employees working under his direction, violated the Clean Air Act asbestos work practice standards by failing to adequately wet Regulated Asbestos during stripping and removal operations and by failing to ensure that Regulated Asbestos remained wetted until placed in leak-tight containers. The defendant also caused Regulated Asbestos to be dropped down holes cut through the floors in Building A-1.
This is the fourth defendant to be sentenced as part of the Kensington Towers asbestos abatement project. In addition to Rai Johnson, other defendants who have plead guilty include JMD project monitors Brian Scott, Evan Harnden and Chris Coseglia and current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants will be sentenced before U.S. District Court Judge Richard J. Arcara.
The conviction was the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Special Agent-In-Charge, William V. Lometti; Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent-In-Charge Brian P. Boetig; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Rene Febles; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain Frank Lauricella. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Booster Sentenced to Two Years in Prison for Fraud SchemeRead the Press Release
Stole Merchandise from Retail Stores and Exchanged the Stolen Items for Gift Cards
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Steven Riley, age 50, of Baltimore, today to two years in prison, followed by three years of supervised release, for wire fraud conspiracy and money laundering. Judge Russell also entered an order requiring Riley to pay restitution of $400,000.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to his plea agreement, from January 2009 to February 2013, Riley, Melissa Perry, Deanna Lynch, Mohamed Al-Omeri, Mark Brunelle, and others, were “boosters.” A “booster” is a person who steals for a living, then sells the stolen items to someone else, usually for a discounted price. Boosters often work in groups, as in this case.
Riley and others stole merchandise from large retail stores throughout Baltimore, Anne Arundel, Prince George’s, Howard and Harford Counties in Maryland, as well as Virginia, Pennsylvania and Delaware. Riley and the other boosters then returned the stolen items in exchange for store gift cards. They used modified Maryland driver’s licenses that contained the personal identifier information of actual persons, without those persons’ knowledge, when returning the stolen items without a receipt. Sometimes the boosters paid neighborhood drug addicts to borrow their licenses for theft/return sprees, for which they paid the addicts between $20 and $25. From January 2011 until April 2012, Riley made 185 fraudulent returns to Home Depot stores in Maryland, causing an actual loss of $37,033.51. These were transactions during which Riley used a modified version of his actual Maryland driver’s license and does not account for fraudulent returns that were executed using “borrowed” driver’s licenses.
Co-conspirator John Tadros owned Busy Bees Convenience Mart located at 335 South Monroe Street, and J&J’s Bar and Liquor located at 1801 Ramsay Street, both in Baltimore. Tadros bought the fraudulently obtained gift cards from the boosters for 50% of the card’s value. Tadros told the boosters to target specific stores at specific locations, and advised them of the best days to steal merchandise and the manner by which they modified their Maryland driver’s licenses. Tadros also collected the welfare benefit debit cards of some of the boosters which he held as collateral if he deemed that the boosters owed him money, and returned the benefit cards to the boosters for 50% of the card’s value. Tadros used the gift cards to purchase personal home goods, and supplies for his businesses and rental properties.
On February 27, 2013, the U.S. Secret Service executed a search warrant and seized 32 fraudulently obtained gift cards from Tadros’ home. Agents also seized 329 retail store receipts from Busy Bee, for purchases made with fraudulently obtained gift cards.
The actual loss to retailers in Maryland caused by the scheme is at least $401,326.12.
John Tadros, age 45, of Baltimore, Melissa Perry, age 34; Deanna Lynch, age 44; Mohamed Al-Omeri, age 39; and Mark Brunelle, age 47, previously pleaded guilty to their participation in the scheme. Tadros was sentenced to 58 months in prison and ordered to pay $400,000 in restitution. Brunelle was sentenced to 51 months in prison and ordered to pay over $210,000 in restitution. Perry and Lynch were sentenced to 30 months and 18 months in prison, respectively, and were ordered to pay restitution of $401,326.12. Al-Omeri was sentence to one year of probation and ordered to pay restitution of $35,000.
United States Attorney Rod J. Rosenstein praised the U.S. Secret Service - Baltimore Field Office for its work in the investigation, and commended the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office for its assistance. Mr. Rosenstein thanked Assistant United States Attorney Mark W. Crooks, who prosecuted the case.