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Thursday 12 June 2014
Two Separate and Unrelated Indictments Charge Similar SchemeRead the Press Release
Identities of children used in tax fraudPHILADELPHIA – Agents with the Internal Revenue Service Criminal Investigation, this morning, arrested a total of five people charged in two separate and unrelated indictments that allege a similar scheme. Momolu Sirleaf is charged with stealing the identifying information of foster children to falsely use as dependents on income tax returns he was preparing for clients. In a separate indictment, six people, including a one-time social worker, are charged with stealing the identifying information of disabled children and foster children to falsely use as dependents on income tax returns.
The charges were announced in separate press releases issued today by United States Attorney Zane David Memeger and IRS Criminal Investigation Special Agent-in-Charge Akeia Conner.
“The allegations in these indictments depict a disturbing practice of exploiting some of the most vulnerable members of our community,” said Memeger. “Unfortunately, it is not unusual for criminals to injure victims through identity fraud and cheat the government of its tax revenue through tax fraud. But the conduct in these cases, in which the fraud schemes involved stealing identity information from disabled children and children in foster care, is truly despicable, and those who are responsible must be brought to justice.”
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Conner. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law. Today’s arrests should serve as a strong warning to those who are considering similar conduct.”
UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT, PENNSYLVANIA
615 Chestnut Street
Suite 1250,
Philadelphia, PA 19106Contact: PATTY HARTMAN
Media Contact: 215-861-8525
Press Release (Kamara, et al) | Indictment.pdf (Kamara, et al) | Press Release.pdf (Momolu Sirleaf) | Indictment.pdf(Sirleaf)
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.justice.gov/usao/pae
Two Men Plead Guilty in Separate Cases for Crimes Involving the Sexual Victimization of ChildrenRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TYRELL C. SUTHERLAND, age 28, of New Orleans, pled guilty to one count of Conspiracy to Provide Contraband into a Prison Facility, in violation of Title 18, United States Code, Section 371.
According to court documents, in or about 2008, the Orleans Parish Prison ("OPP") contracted with the United States Marshals Service to provide for the custody, care, and safekeeping of federal prisoners in the Eastern District of Louisiana. During that year, SUTHERLAND, then employed as an Orleans Parish Sheriff's Deputy, smuggled contraband items (including marijuana and cell phones) into the facility.
The Orleans Parish Sheriff’s Office suspended SUTHERLAND on September 25, 2008, and terminated his employment on October 22, 2008.
SUTHERLAND faces a maximum penalty of five (5) years' imprisonment, a $250,000 fine, three (3) years' supervised release, and an $100.00 special assessment.
Sentencing is set for September 17, 2014, before United States District Judge Stanwood R. Duval, Jr.U.S. Attorney Polite stated, "Sutherland's criminal conduct jeopardized the safety of his fellow Sheriff's Deputies and the inmates he was entrusted to protect. We will not tolerate this type of misconduct that undermines public trust in our law enforcement community."
U.S. Attorney Polite also thanked the Federal Bureau of Investigation and the Orleans Parish Sheriff’s Office for their cooperation and assistance in investigating this matter. The case is being prosecuted by Assistant United States Attorney Duane A. Evans.
(Factual Basis )
Tribunal Federal de Distrito Cierran Empresa de Preparadores de Declaraciones de Impuestos de CaliforniaRead the Press Release
WASHINGTON -- Un tribunal federal EN Fresno, California ha prohibido en forma permanente a Ken Mendoza y Alice Mendoza preparar declaraciones de impuestos federales para terceros, anunció hoy el Departamento de Justicia. Ken Mendoza y Alice Mendoza, quienes funcionaban bajo el nombre comercial "Mendoza Business Services" en Fresno, consitieron a la orden de interdicto civil firmada por el Juez Federal de Distrito J. O'Neill en el Tribunal Federal de Distrito para el Distrito Este de California.
De acuerdo con la demanda, los Mendoza declaran indebidamente las obligaciones de impuestos federales de sus clientes al inventar gastos, pedir créditos falsos o exagerados, especialmente créditos educativos, y deducir gastos personales de sus clientes. En total, la demanda alega que la pérdida para el Tesoro de EE.UU. debido a las actividades de los Mendoza podría ser de hasta 2.8 millones de dóalres para los años fiscales 2010 a 2011. La demanda también alega que muchos de los clientes de los Mendoza podrían deber impuestos adicionales, intereses y multas debido a declaraciones preparadas indebidamente.
Además de prohibir a los Mendoza la preparación o presentación de declaraciones de impuestos federales para terceros, el tribunal también prohibió la preparación o presentación de declaraciones de impuestos federales a cualquiera que actúe en conjunto con los Mendoza, y prohibió a los Mendoza de solicitar o encauzar la preparación de declaraciones de impuestos federales para terceros. El tribunal exigió que los Mendoza se comunicaran con todas las personas para las que prepararon una declaración de impuestos federales desde el 1° de enero de 2008, para informar a dichas personas del interdicto permanente contra ellos.
El fraude de preparación de declaraciones de impuestos es uno de los ardides de la Docena sucia de ardides tributarios de 2013 del Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El IRS tiene algunos consejos en su portal en Internet para la elección de un preparador de impuestos. En la última década, la División de Impuestos ha obtenido interdictos contra cientos de preparadores de impuestos inescrupulosos. Se puede encontrar información sobre estos casos en el portal del Departamento de Justicia. Se encuentra una lista alfabética de personas prohibidas de preparar declaraciones de impuestos y promover ardides tributarios en esta página. Si usted cree que una de las personas o empresas bajo prohibición puede estar violando un interdicto, por favor comuníquese con la División de Impuestos para proveer detalles.
Three Warrensburg Residents Among Six Indicted for Conspiracy to Distribute MethRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that six defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine.
Phuoc Hong, also known as Tony Hong, 31, Garrett D. Statler, 20, and Alyce M. Maher, 26, all of Warrensburg, Mo.; Tony D. Meyer, 41, of Sedalia, Mo.; Dylan K. Avery, 18, of Clinton, Mo.; and Arturo-Lorenzo Roldan, 33, of Independence, Mo.; were charged in a 22-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, June 11, 2014. That indictment was unsealed and made public today upon Hong’s arrest and initial court appearance.
The federal indictment alleges that each of the six defendants participated in a conspiracy to distribute methamphetamine from December 2013 to May 2014. According to the indictment, Hong traveled to Independence to obtain methamphetamine from Roldan, then sold the methamphetamine to customers at various locations (including his own residence in Warrensburg and parking lots of various businesses in the Kansas City, Mo., area). Hong also allegedly sold methamphetamine to Statler, Maher, Meyer and Avery, who allegedly distributed methamphetamine to their own customers.
In addition to the conspiracy, Hong is charged with 11 counts of distributing methamphetamine, four counts of distributing cocaine, one count of possessing methamphetamine with the intent to distribute and one count of possessing cocaine with the intent to distribute.
Hong is also charged with illegally possessing a firearm and a pipe bomb. The indictment alleges that Hong, an unlawful user of methamphetamine, was in possession of a Harrington and Richardson .22-caliber revolver on March 24, 2014. The indictment also alleges that Hong was in possession of a pipe bomb on Feb. 4, 2014.
In addition to the conspiracy, Meyer is charged with one count of distributing methamphetamine and one count of being a felon in possession of a firearm. The indictment alleges that Meyer, having been convicted of a felony, was in possession of a Hi-Point 9mm pistol on Jan. 18, 2014.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Warrensburg, Mo., Police Department, the Johnson County, Mo., Sheriff’s Department, the Missouri State Highway Patrol, the Knob Noster, Mo., Police Department, the Sedalia, Mo., Police Department, the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Third State Auditor Charged with Federal Program FraudRead the Press Release
BATON ROUGE, LA –United States Attorney Walt Green announced today that federal corruption charges has been filed against a third state auditor in the ongoing federal and state investigation into the Bureau of Auditing and Compliance Services for the Louisiana Department of Children and Family Services (DCFS). DCFS leadership has cooperated fully with the investigation.
Today’s Charges
COREY S. POLK, age 33, of Baton Rouge, Louisiana, has been charged in a Bill of Information with federal program fraud, in violation of Title 18, United States Code, Section 666(a)(1)(A). If convicted, Polk faces up to 10 years imprisonment, a $250,000 fine, forfeiture of the proceeds from the offense, restitution, and up to 3 years of supervised release following a term of imprisonment. His initial appearance and arraignment will be held on a date to be determined.
Polk is charged based on his alleged conduct while employed as a managing auditor in the Special Investigations and External Audit Unit within DCFS’ Bureau of Audit and Compliance Services. In that role, Polk was responsible for handling special investigations, including those involving allegations of fraud and theft by individuals employed by DCFS, a state agency which receives over a billion dollars ($1,000,000,000) in federal funding annually.
The Bill of Information alleges that Polk and his supervisor, Audit Director Delrice Augustus, fraudulently misused government purchasing cards to obtain items for personal use, including hotel stays during Mardi Gras and NBA All-Star Weekend, and created and used fraudulent documents to request and receive reimbursement from the State of Louisiana for official travel that did not occur. Polk would allegedly sign the fraudulent reimbursement requests as the requesting employee, and Augustus would sign as the approving supervisor. The State would then pay the requested amount which Polk and Augustus would split.
Other Defendants
Two other state auditors have been previously charged in this investigation. Augustus, who served as the Director of the Bureau of Auditing and Compliance Services, was charged and pled guilty on May 28, 2014, to federal program fraud involving between $120,000 and $200,000. Kaneasha Goston, a former auditor within the Bureau of Auditing and Compliance Services, has been charged in a separate Bill of Information with federal program fraud and is scheduled for an initial appearance and arraignment on June 19, 2014.
The matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana, the Louisiana State Police, the Louisiana Inspector General’s Office, and the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Corey R. Amundson who serves as Chief of the Criminal Division and Special Assistant United States Attorney J. Brad Casey.
NOTE: A Bill of Information is an accusation by the U.S. Attorney’s Office. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Texas Man Sentenced for Coercion & Enticement of a MinorRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on June 12, 2014, Lawrence E. Hundley Jr., 50, Porter, Texas, pleaded guilty and was sentenced by U.S. District Judge Daniel L. Hovland on a charge of coercion & enticement of a minor.
Judge Hovland sentenced Hundley to serve five years and three months in federal prison, to be followed by five years of supervised release. Hundley was ordered to pay a $100 special assessment to the Crime Victim’s Fund.
Hundley was arrested on Nov. 22, 2013, as a result of Operation Vigilant Guardian, a joint anti-Human Trafficking investigation by the North Dakota Bureau of Criminal Investigation and Homeland Security Investigations aimed at “johns” trying to arrange sex with underage human trafficking victims online. The investigation resulted in the arrest on federal charges of 14 defendants in Williston and Dickinson, N.D., in October and November of 2013.
This investigation was conducted by the North Dakota Internet Crimes Against Children Task Force and was a cooperative effort of Homeland Security Investigations, the North Dakota Bureau of Criminal Investigation, and the
Bismarck Police Department, with the assistance of the Burleigh County State’s Attorney’s Office.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Assistant U.S. Attorney Gary Delorme prosecuted the case.
Sixteenth Member of Colombian Cocaine Trafficking Organization Pleads Guilty in Connection with Attempt to Import 7,000 Kilos of CocaineRead the Press Release
Drug traffickers used hidden compartments in trucks and shipping containers, bribed customs officials and worked with Mexican drug cartels
ALEXANDRIA, Va. – Manuel Salas, 62, of Barranquilla, Colombia, pleaded guilty today to charges relating to his participation in a large-scale Colombian cocaine trafficking organization that bought, stored and transported several tons of cocaine for importation into the United States.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Derek S. Maltz, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Special Operations Division, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. Salas is the sixteenth defendant to plead guilty in this case.
Salaswas indicted on Aug. 24, 2011, by a federal grand jury on charges of conspiracy to manufacture and distribute five kilograms or more of cocaine for unlawful importation into the United States, along with four counts of distributing five kilograms or more of cocaine for unlawful importation into the United States. Salasfaces a maximum penalty of life in prison when he is sentenced on September, 19, 2014.
In a statement of facts filed with the plea agreement, along with other court records, Salas admitted that he was part of a large-scale Colombian cocaine trafficking organization that purchased cocaine in Colombia for eventual sale in the United States. The group bought several tons of cocaine from a lab in Colombia’s interior. From there, the group controlled trucks with hidden compartments to transport the cocaine to Colombian ports, including Cartagena and Barranquilla, where the group controlled warehouses. In those warehouses, the cocaine was offloaded from the trucks and loaded into hidden compartments that members of the group constructed in 40-foot maritime shipping containers.
Once the cocaine shipments, consisting of 1,000 to 3,000 kilograms, were loaded into the hidden shipping compartments, those containers were taken to the port, where members of the conspiracy bribed customs officials to allow the containers to pass inspection. Other conspirators created shell companies in Colombia and Honduras, along with falsified export documents, to make the shipments appear legitimate. Once the cocaine arrived in Honduras, other members of the conspiracy worked with Mexican drug cartels to transport the cocaine over land to the United States, where it was sold for huge profits.
Law enforcement in Colombia seized approximately 7,000 kilograms of cocaine associated with this organization. Salas controlled a warehouse in Barranquilla and hired members to construct the hidden compartments and guard the warehouse while the cocaine was being loaded into the shipping containers.
This case was investigated by the DEA’s Special Operations Division, with assistance from the Colombian National Police and the U.S. Justice Department’s Office of International Affairs. Assistant U.S. Attorneys Michael P. Ben’Ary and Lynn E. Haaland are 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 at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Shiprock Man Sentenced to Federal Prison for Assaulting a Tribal Police OfficerRead the Press Release
ALBUQUERQUE – Victor Tyler, 45, an enrolled member of the Navajo Nation who resides in Shiprock, N.M., was sentenced this afternoon to 30 months followed by two years in federal prison for his assault conviction.
Tyler was arrested on Aug. 20, 2013, based on a criminal complaint charging him with assault with a dangerous weapon. Tyler subsequently was indicted and charged with that same charge and also with assaulting a federal officer with a dangerous weapon and inflicting bodily injury.
On Nov. 5, 2013, Tyler pleaded guilty to Count 1 of the indictment charging him with assault with a dangerous weapon. In his plea agreement, Tyler admitted that on Aug. 16, 2013, officers of the Navajo Nation Division of Public Safety came to his Shiprock residence in response to his wife’s call for assistance. At the time, Tyler had armed himself with two kitchen knives and locked himself into a bedroom. After two uniformed officers entered the residence, Tyler came out of the bedroom with the knives, ignored the officers’ repeated instructions that he drop the knives, and threw one of the knives at one of the officers. The knife struck the officer in the foot, causing injury to her foot.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney David Adams.
Sentencing for June 6 - 9, 2014Read the Press Release
Raymond Parr, 51, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on June 9, 2014, for possession with intent to distribute 48 grams of methamphetamine. Parr was arrested in Cheyenne, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Audrey Cantrell, 47, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 6, 2014, for possession with intent to distribute at least 50 grams but less than 150 grams of methamphetamine. Cantrell was arrested in Rock Springs, Wyoming. She received 78 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
San Diego Man Pleads Guilty to Defrauding the United Auburn Indian CommunityRead the Press Release
SACRAMENTO, Calif. — Bart Wayne Volen, 54, of San Diego and Haiku, Hawaii, pleaded guilty today to conspiring commit mail and wire fraud, conspiring to launder monetary instruments, and filing a false tax return, United States Attorney Benjamin B. Wagner announced.
In pleading guilty, Volen admitted to defrauding the United Auburn Indian Community (UAIC) of more than $17 million dollars. The UAIC is a federally recognized Native American tribe consisting mostly of Miwok and Maidu Indians indigenous to the Sacramento Valley region. The UAIC is located at the historic Auburn Rancheria in the Sierra Nevada foothills near Auburn. In pleading guilty, Volen agreed to a restitution order requiring that he and any co-defendants who are convicted to pay at least $17 million to their victims, which include both the UAIC and the Internal Revenue Service.
According to his plea agreement, Volen was hired as a developer by the UAIC in October of 2006 to finish construction on four tribal buildings — a school, a community center, and two administrative offices — on UAIC property on Indian Hills Road in Auburn. Between October 2006, and November 2007, Volen regularly submitted false and inflated invoices to the UAIC for work purportedly done on the tribal construction projects. In many instances, these invoices were based upon cost proposals from Volen’s subcontractor that he caused to be inflated. In other instances, Volen submitted false change order invoices for work that was never performed. Volen admitted making payments to co-conspirators employed by the UAIC to ensure that his fraudulent invoices were approved and paid.
With regard to the tax offense, according to court documents, Volen filed tax returns that contained a Schedule C in which Volen falsely claimed business loss deductions to which he was not entitled. As a result, the United States suffered a tax loss of between $2.5 million and $7 million.
“Utilizing insiders and an extensive trail of false documents to back up his scheme, Bart Volen managed to steal an incredibly large amount of money from a community that plays a very special role in our district,” said U.S. Attorney Wagner. “My office, our colleagues at the IRS, and all of our law enforcement partners are committed to bringing to justice those who would commit crimes against our tribal communities.”
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.Also named in the indictment with Volen are UAIC employees Greg Scott Baker, 46, of Newcastle; and Darrell Patrick Hinz, 48, of Cameron Park. Baker and Hinz are scheduled for trial in Sacramento on October 20, 2014. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Volen is scheduled to be sentenced by United States District Judge Troy L. Nunley on December 4, 2014. Volen faces a maximum sentence of 20 years in prison, a $250,000 fine, or twice the value of the gross gain or loss, and a three-year term of supervised release for conspiring to commit mail and wire fraud. The maximum statutory penalty for conspiring to launder monetary instruments is 20 years in prison, a $500,000 fine or twice the value of the laundered money, and a three-year term of supervised release. The maximum statutory penalty for the tax violation is three years in prison, a $100,000 fine, or a fine of twice the value of the gross gain or loss, and a one-year term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Romanian National “Guccifer” Charged with Hacking into Personal Email AccountsRead the Press Release
Marcel Lehel Lazar, 42, of Arad, Romania, also known as the hacker “Guccifer,” was indicted by a federal grand jury today on charges of wire fraud, unauthorized access to a protected computer, aggravated identity theft, cyberstalking and obstruction of justice.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Special Agent in Charge Edward Lowery of the United States Secret Service Criminal Investigative Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Principal Deputy Assistant Secretary Bill A. Miller of the U.S. Department of State Bureau of Diplomatic Security made the announcement .
According to the indictment, from December 2012 to January 2014, Lazar hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor. After gaining unauthorized access to their email and social media accounts, Lazar publicly released his victims’ private email correspondence, medical and financial information, and personal photographs. The indictment also alleges that in July and August 2013, Lazar impersonated a victim after compromising the victim’s account.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by United States Secret Service, the FBI’s Washington Field Office and the U.S. Department of State Bureau of Diplomatic Security, with assistance from the Romanian National Police . The case is being prosecuted by Trial Attorney Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Ryan K. Dickey of the Eastern District of Virginia. The Criminal Division’s Office of International Affairs provided assistance.Romanian National “Guccifer” Charged with Hacking into Personal Email AccountsRead the Press Release
ALEXANDRIA, Va. – Marcel Lehel Lazar, 42, of Arad, Romania, also known as the hacker “Guccifer,” was indicted by a federal grand jury today on charges of wire fraud, unauthorized access to a protected computer, aggravated identity theft, cyberstalking and obstruction of justice
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Edward Lowery of the United States Secret Service Criminal Investigative Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Principal Deputy Assistant Secretary Bill A. Miller of the U.S. Department of State Bureau of Diplomatic Security made the announcement.
According to the indictment, from December 2012 to January 2014, Lazar hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor. After gaining unauthorized access to their email and social media accounts, Lazar publicly released his victims’ private email correspondence, medical and financial information, and personal photographs. The indictment also alleges that in July and August 2013, Lazar impersonated a victim after compromising the victim’s account.
If convicted of wire fraud or obstruction of justice, Lazar faces a maximum of 20 years of incarceration, and if convicted of unauthorized access of a protected computer or cyberstalking, he faces a maximum of 5 years of incarceration. He also faces a mandatory additional 2 years of incarceration if convicted of aggravated identity theft.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by United States Secret Service, the FBI’s Washington Field Office and the U.S. Department of State Bureau of Diplomatic Security, with assistance from the Romanian National Police. The case is being prosecuted by Trial Attorney Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Ryan K. Dickey of the Eastern District of Virginia. The Criminal Division’s Office of International Affairs provided assistance.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Romanian National “Guccifer” Charged with Hacking into Personal Email AccountsRead the Press Release
ALEXANDRIA, Va. – Marcel Lehel Lazar, 42, of Arad, Romania, also known as the hacker “Guccifer,” was indicted by a federal grand jury today on charges of wire fraud, unauthorized access to a protected computer, aggravated identity theft, cyberstalking and obstruction of justice
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Edward Lowery of the United States Secret Service Criminal Investigative Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Principal Deputy Assistant Secretary Bill A. Miller of the U.S. Department of State Bureau of Diplomatic Security made the announcement.
According to the indictment, from December 2012 to January 2014, Lazar hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor. After gaining unauthorized access to their email and social media accounts, Lazar publicly released his victims’ private email correspondence, medical and financial information, and personal photographs. The indictment also alleges that in July and August 2013, Lazar impersonated a victim after compromising the victim’s account.
If convicted of wire fraud or obstruction of justice, Lazar faces a maximum of 20 years of incarceration, and if convicted of unauthorized access of a protected computer or cyberstalking, he faces a maximum of 5 years of incarceration. He also faces a mandatory additional 2 years of incarceration if convicted of aggravated identity theft.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty.
This case was investigated by United States Secret Service, the FBI’s Washington Field Office and the U.S. Department of State Bureau of Diplomatic Security, with assistance from the Romanian National Police. The case is being prosecuted by Trial Attorney Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Ryan K. Dickey of the Eastern District of Virginia. The Criminal Division’s Office of International Affairs provided assistance.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pittston Man Charged with Bringing A Gun into the Federal Building in ScrantonRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has charged a 58-year-old Pittston resident unlawfully possessing and causing to be present a loaded firearm inside the William J. Nealon Federal Building.
According to United States Attorney Peter Smith, his office filed a criminal Information yesterday against Jerome Vantaggi, charging him with committing the offense on June 5, 2014.
The charge against Vantaggi resulted from an investigation by the United States Marshals Service.
If convicted of the charge, Vantaggi faces up to one year in prison and a $100,000 fine.
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.
In this case, the maximum penalty under the federal statute is 1 year imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Physician-Businessman Convicted of Mortgage Loan FraudRead the Press Release
NORFOLK, Va. – Irfan M. Jameel, 51, of Virginia Beach, Va., was convicted today by a federal jury on charges of wire fraud, bank fraud, and use of a false social security number.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office, made the announcement after the jury returned its verdict. Senior United States District Judge Henry Coke Morgan, Jr., presided over the trial.
Jameel faces a maximum penalty of thirty years on each of counts one through three, and a maximum penalty of five years on count four, when he is sentenced on October 16, 2014.
Jameel was indicted on July 25, 2013 by a federal grand jury on one count of wire fraud affecting a financial institution, two counts of financial institution fraud, and one count of using a false social security number. According to court records and evidence at trial, Jameel defrauded several lenders by misrepresenting the status and nature of his business and income in the US and Canada and by misrepresenting his medical career and accomplishments. Among other things, Jameel claimed to be the chief scientist of an international biotechnology company, Biocer, and reported that it paid him approximately $8,000,000 in 2005 and 2006. As a result of these and other misrepresentations, Jameel obtained $3 million in loans from SunTrust to buy an 8 acre waterfront estate, $2.375 million in loans from Gateway Bank, and a $46,000 car loan from a local credit union. Although he used a portion of the loan proceeds to extinguish some of this debt, Jameel later defaulted upon all of these loans. After obtaining such loans, Jameel also used a false social security number when seeking the preparation of three years of federal income tax returns by an accounting firm.
This case was investigated by the Federal Bureau of Investigation’s Norfolk Field Office. Assistant United States Attorneys Robert Krask and Stephen Haynie are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Owner of New Jersey Debit Card Business Sentenced to 18 Months in Prison for Filing False Tax ReturnsRead the Press Release
NEWARK, N.J. – An Orange County, N.Y., man who owned a New Jersey company was sentenced today to 18 months in prison for filing false income tax returns, U.S. Attorney Paul J. Fishman announced.
Richard Jackowitz, 61, of Warwick, N.Y., previously pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with two counts of filing false tax returns.
According to documents filed in this case and statements made in court:
Jackowitz owned and operated Branded Marketing, a Haskell, N.J., company that sold debit cards. For the 2007 and 2008 tax years, Jackowitz had unreported income from his company of $105,512 and $359, 677, respectively. Jackowitz’s false tax returns caused a loss to the IRS of more than $300,000.
In addition to the prison term, Judge Wigenton sentenced Jackowitz to one year of supervised release and fined him $4,000. As part of his plea agreement, Jackowitz also agreed to pay $319,940 in restitution to the government.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Joseph B. Shumofsky and Jenny Kramer of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
14-217
Defense counsel: John D. Williams Esq., Vernon, N.J.Owner of Defense Contracting Company Charged with Wire Fraud Conspiracy for Providing Nonconforming Parts to GovernmentRead the Press Release
TRENTON, N.J. – The former president of a Burlington, N.J.,-based defense contracting business was arrested and charged today with allegedly stealing $3 million through fraudulent contracts with the U.S. Department of Defense, U.S. Attorney Paul J. Fishman announced.
Richard Melton, 44, of Moorestown, N.J., was charged by complaint with one count of conspiracy to commit wire fraud for receiving $3 million from 2008 to 2009 as a result of allegedly fraudulent contracts with the U.S. Department of Defense (DoD). Melton is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.
According to documents filed in this case and statements made in court:
Melton was the founder, owner, and president of Partz Network LLC (Partz Network), a company located in Burlington. Melton owned and operated Partz Network from April 2003 to December 2009. Partz Network contracted with the government to supply the DoD with parts on small-dollar contracts. The majority of the contracts were for replacement parts for military rolling stock: trucks, trailers, and engineering equipment. The majority of Partz Network’s DoD contracts required that the items provided be manufactured by DoD-recognized qualified manufacturers.
Melton and his conspirators allegedly lied on Partz Network’s bids for DoD contracts, stating that they would be providing the “exact product” sought by the DoD, meaning that the product was manufactured by a DoD-recognized qualified manufacturer. In fact, Partz Network was allegedly providing parts made by unapproved, and oftentimes unknown, sources.
In 2007, the Defense Logistics Agency (DLA), a DoD contracting agency, became aware of reports of nonconforming parts being received from Partz Network. As a result, DLA required Partz Network to provide “traceability documents” to confirm that the items it was supplying were actually being manufactured by DoD recognized qualified manufacturers. Partz Network provided traceability documents and invoices to DLA regarding items provided under the DoD contracts. When DLA researched the traceability documents supplied by Partz Network, DLA learned that the documents were either altered or completely fictitious.
For example, on Nov. 15, 2007, Partz Network submitted a bid electronically through the DoD’s internet bid system to supply the DoD with 1,400 oil pans for $53.85 per item. Partz Network represented that the company was providing the exact product manufactured by one of the two DoD-recognized qualified manufacturers. Partz Network was subsequently awarded the contract for 1,400 oil pans for a total contract price of $75,390. Both the request for quotation (RFQ) and the final contract included the language that the exact product was required. The items ultimately provided by Partz Network were not the exact products required under the contract because the items were not manufactured by a qualified manufacturer. In fact, on Nov. 10, 2007, five days prior to Partz Network submitting its bid for the contract, Melton sent an e-mail to a Partz Network employee with a link to the DoD RFQ that stated the following: “Bid these (1400) HMMWW oil pans at $53.85 and I will have them made overseas by [a company located in the People’s Republic of China] or another overseas firm, 200-day lead time.” Based on Partz Network documents related to that contract, Partz Network purchased the oil pans that were provided to the DoD from a company located in India in January 2008.On Aug. 27, 2009, Partz Network was awarded a contract to supply the DoD with 887 bearing half sets for a total contract price of $16,010.35. Partz Network certified that the items would be the exact product required under the contract. The items ultimately provided by Partz Network under the contract were not the exact products required because the items were not manufactured by the qualified manufacturer. DoD ultimately inspected the items and determined that the items were manufactured by an unapproved source.
The wire fraud conspiracy count with which Melton is charged carries a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the U.S. Department of Defense, Criminal Investigative Service, under the direction of Director James Burch; special agents of Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HIS), under the direction of Special Agent in Charge Andrew M. McLees, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Fabiana Pierre-Louis of the U.S. Attorney’s Office Criminal Division in Trenton and Evan Weitz of the Office’s Asset Forfeiture Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
14-216Defense counsel: Scott S. Christie Esq., Newark
Melton, Richard Complaint
New York City Police Officer and Customs and Border Protection Officer Plead Guilty to International Arms TraffickingRead the Press Release
Earlier today, Rex Maralit, a New York City Police Officer previously assigned to police headquarters in Manhattan, and his brother Wilfredo Maralit, a Customs and Border Protection Officer previously assigned to Los Angeles International Airport, pleaded guilty in Brooklyn federal court to violating the Arms Export Control Act. The two men were charged in connection with their respective roles in the export of high-powered weapons from the United States to the Philippines, without a license from the U.S. State Department.
The pleas were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James T. Hayes, Jr., Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; Craig W. Rupert, Special Agent-in-Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office; Thomas J. Cannon, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), New York Field Division; and William J. Bratton, Commissioner, New York City Police Department (NYPD).
According to court filings and statements at today’s proceedings, between January 2009 and September 2013, the defendants engaged in a scheme to smuggle high-powered assault rifles, sniper rifles, pistols, and firearm accessories, such as high-capacity magazines, from the United States to the Philippines, where they were sold to overseas customers. Both of the defendants who pleaded guilty today are American law enforcement officers, who brazenly used their credentials and status to obtain extremely dangerous weapons and ship the weapons for export and resale, as well as to obtain discounts on various weapons from U.S.-based gun dealers. The firearms that the defendants illegally exported and sold included the Barrett M82A1 .50 caliber semi-automatic long range sniper rifle, the FN “SCAR” assault rifle, and the FN Herstal 5.7mm semi-automatic pistol. Many of the weapons the defendants exported are specifically designed to penetrate both hard and soft body armor.
The Arms Export Control Act requires exporters of firearms to first obtain the approval of the State Department before shipping weapons overseas. The United States Munitions List requires export licenses for firearms such as the military-style assault rifles, sniper rifles, and semi-automatic handguns exported by the defendants. Similarly, dealing in firearms is regulated by the ATF, which requires gun dealers to first obtain a federal firearms license before engaging in such a business.
“Today a New York Police Officer and a Customs and Border Protection Officer admitted their involvement in a serious federal crime. This is a sad day for American law enforcement. But make no mistake: the laws that are designed to regulate the trafficking of dangerous weapons apply with equal force to anyone who would dare to ignore them,” stated U.S. Attorney Lynch. “Criminal conduct by police officers, federal agents, and their confederates is intolerable. I commend our law enforcement partners who brought these men to justice though their diligence and professionalism.” Ms. Lynch expressed her grateful appreciation to HSI, DCIS, ATF, and the NYPD’s Internal Affairs Bureau, which worked closely together to investigate the case, and to the U.S. Attorney’s Offices for the Central District of California and the District of New Jersey for their assistance.
When sentenced on October 16, 2014, by the Hon. Allyne R. Ross, the defendants each face up to 20 years in prison, forfeiture, and a fine of up to $1,000,000.
The government’s case is being prosecuted by Assistant United States Attorneys Seth DuCharme and Sam Nitze, with assistance from Trial Attorney David Recker of the Department of Justice Counterespionage Section.
The Defendants:
REX G. MARALIT
Lawrenceville, New Jersey
Age: 45
WILFREDO MARALIT
Garden Grove, California
Age: 49
New Jersey Doctor Sentenced to 21 Months in Prison for Taking Cash Kickbacks for Patient ReferralsRead the Press Release
NEWARK, N.J. – A doctor who was convicted at trial of receiving cash kickbacks for diagnostic testing referrals was sentenced today to 21 months in prison, U.S. Attorney Paul J. Fishman announced today.
Maryam Jafari, 43, was convicted Feb. 4, 2014, of all three counts of a superseding indictment charging her with conspiracy and two counts of violating the federal health care anti-kickback statute after a three-week trial before U.S. District Judge Claire C. Cecchi, who imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Jafari was a doctor licensed in New Jersey to practice internal medicine and operated an office in Newark. From 2010 through December 2011, Jafari solicited and received cash kickbacks from Orange Community MRI LLC (Orange MRI) in exchange for MRIs and CAT scans she referred to the diagnostic testing facility.
At the end of each month, OCM printed patient reports that included information such as dates of service, patient name, referring health care practitioner and medical insurance to be billed. The reports were used to tally the number of tests referred by each doctor and determine the amount of kickback payment paid to the referring healthcare provider.
On Nov. 22, 2011, Jafari met with a cooperating witness at Jafari’s office and accepted a white envelope containing $1,965 in cash, payments for three months of tests Jafari referred to Orange MRI. On Dec. 6, she accepted another payment of $420 in cash for referrals from October 2011. A trial on these charges in 2012 ended in a mistrial when the jury could not reach a unanimous verdict.
In addition to the prison term, Judge Cecchi sentenced Jafari to two years of supervised release, fined her $45,000 and ordered forfeiture of $40,261.U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, who investigated the case with criminal investigators from the U.S. Attorney’s Office.
The government is represented by Assistant U.S. Attorneys Scott B. McBride, deputy chief of the Economic Crimes Unit, and Joseph G. Mack, deputy chief of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Maria Noto Esq., Matawan, N.J.
14-217Navajo Man Sentenced to Federal Prison for Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Jeremiah Burns, 33, a member of the Navajo Nation who resides in Dulce, N.M., was sentenced this morning to 20 months in federal prison followed by two years of supervised release for his involuntary manslaughter conviction. Burns also was ordered to pay $2080.25 to cover funeral expenses for the victim of his criminal conduct.
Burns was arrested in Aug. 2013, based on an indictment charging him with killing a man on Oct. 22, 2011, while driving under the influence of alcohol within the Jicarilla Apache Indian Reservation.
On Jan. 3, 2014, Burns pled guilty to the indictment and admitted killing the victim while driving under the influence of alcohol and marijuana which rendered him incapable of exercising clear judgment and a steady hand in handling a vehicle. Burns acknowledged operating the vehicle without due caution and with a reckless disregard that imperiled the lives of others.
Burns was ordered to surrender himself by noon today to the U.S. Marshals Service to begin serving his prison sentence.
The case was investigated by the Farmington office of the FBI and the Jicarilla Apache Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Milford Woman Sentenced to 2 Years for Straw Gun PurchasesRead the Press Release
Contact: Gail Fisk Malone
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Maureen Hammond, 50, of Milford, Maine, was sentenced yesterday to two years in prison and
three years of supervised released for conspiring to make false statements during the purchase of
firearms. Hammond pled guilty in June 2013.Court documents reveal that on October 9, 2012, Hammond purchased three handguns in
two transactions at Jimi’s Trading Center in Brewer, Maine. At the time of the sales, she
completed a federally-required form claiming to be the actual buyer, when, in fact, she was
buying the handguns for a man she knew to be a drug dealer and paying with money he had
given to her. The handguns have never been recovered.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives
and the Penobscot County Sheriff’s Office.Mexican Nationals Indicted for Growing Marijuana in the Sequoia National Forest in Kern CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Mexican nationals Jesus Avalos-Cervantes, 26, and Pedro Pantoja-Padilla, 46, charging them with one count of conspiring to distribute, possess with intent to distribute, and manufacture marijuana, one count of manufacturing marijuana, and one count of causing more than $1,000 in damage to the national forest, United States Attorney Benjamin B. Wagner announced.
According to court documents, on June 4, 2014, United States Forest Service agents and Kern County Sheriff’s deputies executed a search warrant in the Kern River drainage of the Sequoia National Forest in Kern County. Officers located over 5,500 marijuana plants. Pantoja-Padilla was placed under arrest, but Cervantes was able to flee and avoid apprehension. Cervantes was identified through documents he left behind. Extensive damage was caused to the national forest as a result of the marijuana cultivation. Native vegetation had been cut and removed, and the steep hillside had been dug and terraced into plots. Fertilizers, pesticides and rodenticides were found throughout the site, including the banned pesticides zinc phosphide and furadan.
This case is the product of an investigation by the United States Forest Service and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Pantoja-Padilla faces a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted, Jesus Avalos-Cervantes faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Leonard Man Pleads Guilty to Filing A False Tax ReturnRead the Press Release
Paul Michajlyszyn, of Leonard, Michigan, former Vice President of Odyssey, Inc. a Lake Orion, MI corporation, pleaded guilty yesterday to one count of filing false tax returns with the Internal Revenue Service, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Michajlyszyn, entered the guilty plea before U.S. District Judge Arthur J. Tarnow.
Michajlyszyn entered his plea two days after Randal Bellestri, owner of Odyssey, Inc, plead guilty to filing false tax returns and conspiracy to file false tax returns.
According to court records, Odyssey, Inc. produces machine tools for the aviation industry. Beginning before 2004 and continuing until July 2009, Michajlyszyn had an agreement with Randll Bellestri, owner of Odyssey, Inc. regarding the sale of scrap metal left over from Odyssey’s manufacturing operations. Michajlyszyn was authorized by Bellestri to serve as a contact with the scrap metal buyer and to collect the proceeds from the sales in cash. The proceeds were then divided between Michajlyszyn and Bellestri. By accepting only cash for the sale of the scrap, Michajlyszyn was able to conceal the receipt of the cash from Odyssey, Inc. as well as the Internal Revenue Service. Michajlyszyn did not claim the cash proceeds from these scrap metal sales as income on his federal income tax returns. Michajlyszyn’s failure to report these cash proceeds for the 2004 through 2008 tax years caused his income to be understated by approximately $270,483.
Michajlyszyn’s sentencing is set for September 18, 2014 at 2 pm. Filing a false tax return charge carries a maximum term of imprisonment of three years and/or a fine of $250,000.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Christopher L. Varner.
Law Firm Paralegal Sentenced to Prison in Mail Fraud and Tax Evasion SchemeRead the Press Release
OAKLAND – Ana Lissa Reyes was sentenced today to 27 months in prison and ordered to pay $327,795 in restitution to victims of her mail fraud scheme, and $67,448 in restitution to the Internal Revenue Service for tax evasion, announced United States Attorney Melinda Haag, along with Special Agents in Charge David Johnson of the Federal Bureau of Investigation and Jose M. Martinez of the Internal Revenue Service, Criminal Investigation.
Reyes pleaded guilty on April 17, 2014, to mail fraud and tax evasion. According to the plea agreement, Reyes worked as a secretary, office manager, and paralegal for a Bay Area law firm. Reyes admitted that from about 2006 through June 2011, she, without authorization, settled claims without the knowledge of the law firm or its clients, and stole the settlement proceeds. Reyes admitted to engaging clients without the law firm’s knowledge and to stealing their retainer fee payments.
Reyes also admitted that, in carrying out the scheme to defraud, she created a bogus company, “Lincoln Litigation,” to correspond with clients, and to defraud them into believing that their cases were ongoing. She admitted to embezzling a total of $327,795.05 from the law firm and its clients.
Reyes also admitted to under-reporting her income for the calendar years 2006 through 2011. For each of those tax years, Reyes admitted that she knew her joint taxable income was substantially in excess of the amount stated on the return, resulting in additional tax due and owing to the United States.
Reyes, 42, of San Lorenzo, was charged in an information on January 25, 2013, and waived indictment on January 31, 2013. She was charged with five counts of mail fraud, in violation of 18 U.S.C. § 1341, and six counts of tax evasion, in violation of 26 U.S.C. § 7201.
The sentence was handed down by the Honorable Yvonne Gonzalez Rogers, U.S. District Court Judge, following a guilty plea on one count of 18 U.S.C. § 1341, and to one count of 26 U.S.C. § 7201. Judge Gonzalez Rogers also sentenced Reyes to a three-year period of supervised release. Reyes will begin serving the sentence on August 11, 2014.
Wade Rhyne is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Janice Pagsanjan and Patty Lau. The prosecution is the result of a year-long investigation by the Federal Bureau of Investigation and IRS, Criminal Investigation.
Largo Man Convicted at Trial for Accessing Child Pornography on the InternetRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that a federal jury today found Eric Thomas (37, Largo) guilty of access with the intent to view child pornography. Thomas faces a maximum penalty of ten years in federal prison. His sentencing hearing is scheduled for September 18, 2014. He was remanded to the custody of the United States Marshals Service pending sentencing. Thomas was indicted on September 30, 2013.
According to the testimony and evidence presented at trial, on July 21, 2012, Thomas’s then wife discovered evidence that Thomas had been looking at child pornography on the Internet, using the couple’s home computer. Law enforcement obtained a search warrant for the computer. A forensic review revealed that more than 850 images of child pornography had been deleted from the computer. Thomas had taken considerable steps to conceal his activities by removing the Internet history and the child pornography files from his computer.
This case was investigated by the Federal Bureau of Investigation, the Largo Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Josephine W. Thomas.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Killeen Man Pleads Guilty to Federal Obstruction ChargeRead the Press Release
Defendant intimidated witness in trial of Killeen brothers convicted of distributing close to 30 kilograms of cocaine
In Waco, 33-year-old Carrick Mondale Mango of Killeen, TX, faces up to ten years in federal prison after pleading guilty this afternoon to an obstruction of justice charge, namely witness tampering, announced United States Attorney Robert Pitman and United States Marshal Robert Almonte.
According to court records, on March 6, 2014, during the trial of U.S. v. Cornelius Tywarren Wilson, et al. (W-13-CR-138) in federal court in Waco, Mango approached a trial witness and instructed the witness not to testify against defendant Christopher Wilson. The witness told deputy U.S. Marshals that Mango gave the witness an intimidating look, which made the witness feel threatened and uncomfortable. The witness took the stand during trial and testified but failed to identify Christopher Wilson, even though they were neighbors.
Mango’s intimidation tactics also included accosting the prosecutor trying the case and intentionally following another government witness to the lobby of the United States Attorney’s Office.
Mango remains in federal custody pending sentencing. Sentencing is scheduled for August 6, 2014, before United States District Judge Walter S. Smith, Jr.
On March 10, 2014, the jury found Christopher and his brother, Cornelius Wilson, guilty of multiple drug charges in connection with their cocaine distribution operation based in Killeen. On April 30, 2014, Christopher and Cornelius Wilson were sentenced to 35 years and 30 years in federal prison, respectively.
Justice Department Settles Immigration-Related Discrimination Claim Against Commercial Cleaning SystemsRead the Press Release
The Justice Department reached an agreement today with Commercial Cleaning Systems, a janitorial services company with headquarters in Denver. The agreement resolves claims that the company discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).
The department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services. The investigation found that Commercial Cleaning Systems required work-authorized non-U.S. citizens to present specific documentation issued by the U.S. Department of Homeland Security in order to verify their employment eligibility, while U.S. citizens were permitted to present their choice of documentation. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the hiring and employment eligibility verification process based on their citizenship status or national origin.
Under the settlement agreement, Commercial Cleaning Systems will pay $53,500 in civil penalties, create a $25,000 back pay fund to compensate individuals who may have lost wages as a result of the company’s discriminatory document practices, and be subject to monitoring of its employment eligibility verification practices for one year.
“Discriminating against work-authorized employees because they are not citizens violates federal law and the Justice Department is committed to enforcing this law,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We applaud Commercial Cleaning Systems 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 also prohibits, among other things, citizenship status and national origin discrimination in hiring, firing and recruitment or referral for a fee. The case was handled by OSC Trial Attorney Linda White Andrews.
For more information about protections against employment discrimination under immigration laws or how to sign up for a free webinar, 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) or visit the OSC website at www.justice.gov/crt/about/osc .
Applicants or employees who believe they were subjected to different documentary requirements or discrimination based on their citizenship status, immigration status or national origin in hiring, firing or recruitment or referral for a fee should contact the worker hotline above for assistance.
Jury Convicts Prisoner of Assaulting CounselorRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced an inmate at the U.S. Medical Center for Federal Prisoners in Springfield was convicted in federal court today of assaulting a federal correctional counselor at the facility.
Willard Begay, 34, an inmate at the U.S. Medical Center for Federal Prisoners in Springfield, was found guilty of punching a counselor in the face and throwing a computer printer at the counselor’s face.
Evidence introduced during the trial indicated that a counselor at the prison facility met with Begay on Oct. 1, 2012, to discuss the friction Begay was having with fellow inmates and to move Begay to another unit in order to eliminate the brewing conflict between Begay and fellow inmates. At the conclusion of their meeting, the counselor was attempting to secure Begay to move him to the new unit. The counselor grabbed Begay’s left arm in order to handcuff him, when Begay abruptly turned toward the counselor and punched him in the face with a closed fist. The counselor lost his balance and fell back a few feet. While he was still dazed from the punch, Begay removed a printer from a table in the office, raised it above his head, and smashed the printer onto the counselor’s face.
The counselor radioed for assistance and correctional officers entered the room and handcuffed Begay after a struggle. The counselor was transported to the hospital emergency room. A physician determined that he sustained an orbital floor fracture. The physician closed the wound with sutures and recommended the counselor to follow up with a plastic surgeon.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield, Mo., deliberated for two hours before returning the guilty verdict to U.S. District Judge M. Douglas Harpool, ending a trial that began Wednesday, June 11, 2014.
Under federal statutes, Begay is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000 and an order of restitution. 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. Attorneys Abram McGull, II and Patrick Carney. It was investigated by the FBI.
Joint Law Enforcement Effort Leads to Issuance of First Ever Interpol Purple Notice from the United StatesRead the Press Release
WASHINGTON - A joint investigation between the National Oceanic and Atmospheric Administration (NOAA), the United States Coast Guard (USCG), and Interpol Washington (U.S. National Central Bureau) has led to the publication of the first-ever Interpol Purple Notice issued by the United States for a vessel believed to be engaged in illegal fishing activities.
According to the Purple Notice, the fishing vessel named 'Stellar' was sighted twice in May 2014 operating on the high seas of the North Pacific Ocean by the USCG. It appears to change its name, national registration and other identifying characteristics in order to hide illegal activity. 'Stellar' is suspected of engaging in illicit fisheries transshipment activities near the Russian Exclusive Economic Zone.
'Stellar' was last known to have arrived in the port of Busan, Korea on June 3, 2014. The USCG provided information to the Korean authorities regarding the suspicious activities of 'Stellar' and recommended the vessel be inspected for potential violations.
“Illegal fisheries activity has a wide-ranging impact on the health and sustainability of the oceans fish stocks,” said Bruce Buckson, Director of NOAA's Office of Law Enforcement. “We're pleased to be working with Interpol, its member agencies, and the U.S. Coast Guard to combat this type of activity. We expect this international effort will help level the playing field for U.S. domestic fishers.”
“I commend NOAA, the USCG and Interpol Washington's Economic Crimes Division representatives for their extraordinary efforts, collaboration and partnership during this investigation which has resulted in the first Interpol Purple Notice issued by U.S. law enforcement authorities,” stated Interpol Washington Director Shawn A. Bray.
The United States wishes to make all 189 other Interpol member countries aware of the suspected illegal operations of the fishing vessel 'Stellar' (also known as 'Sungari'). By raising awareness of this vessel's operations, member countries will be able to investigate possible violations of their laws and take appropriate enforcement measures should the vessel attempt to operate illegally in their waters or ports, or under their national jurisdiction.
Johnstown Man Pleads Guilty to Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court to charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Matthew John Claycomb, 22, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on Jan. 25, 2013, Matthew John Claycomb along with co-defendants, distributed less than 100 grams of heroin.
Judge Gibson scheduled sentencing for Matthew John Claycomb on Dec. 2, 2014, at 10 a.m.
The law provides for a maximum total sentence for Matthew John Claycomb of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Matthew John Claycomb.
International Drug Money Laundering ConvictionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Alvaro López Tardón, 39, of Miami Beach and Madrid, Spain, was convicted on 14 counts of conspiracy to launder narcotics proceeds and money laundering, in violation of Title 18, United States Code, Sections 1956 and 1957. Sentencing is scheduled for August 19, 2014, before U.S. District Judge Joan A. Lenard. At sentencing, Tardón faces a maximum sentence of 20 years in prison on the conspiracy to commit money laundering count and ten years in prison on each substantive money laundering count, followed by three years of supervised release.
Tardón was the head of an international narcotics trafficking and money laundering syndicate which distributed over 7,500 kilograms of South American cocaine in Madrid and laundered over $15,000,000 in narcotics proceeds in Miami by buying high-end real estate, luxury, exotic automobiles and other high-end items. The proceeds were smuggled into Miami by couriers through Miami International Airport, wire transferred to South Florida by co-conspirators via MoneyGram and Western Union, wire transferred to third parties internationally on behalf of Tardón, and wire transferred directly to Tardón and his co-conspirators in Miami through Tardón’s exotic car dealership and other companies controlled by him located in Madrid, Spain.
Following the guilty verdicts, the jury found that a significant portion of the defendant’s assets should be forfeited. Those assets involved real estate and cars. The real estate purchased by Tardón included condominium units in Miami Beach and Coconut Grove areas of Miami. The exotic automobiles included a Bugatti Veyron and Ferrari Enzo, each worth over $1 million, a Mercedes-Benz Maybach 57S, two Mercedes-Benz G55, a Rolls Royce Ghost, and a Land Rover Range Rover. The government also seized three bank accounts.
The seven-week trial included the introduction of over 36,000 pages of financial and corporate documents from Spain and the United States. The trial also included testimony from six members of the Spanish National Police, a member of the Spanish national wiretapping agency (SITEL), and the Spanish taxing authority (Agencia Estatal de la Administración Tributaria).
The investigation and prosecution of Tardón was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies to identify, investigate and prosecute high level narcotics traffickers and money launderers.
U.S. Attorney Wifredo A. Ferrer stated, “This case demonstrates that we will work vigorously with our local, federal, and international partners to bring to justice those who traffic in narcotics as well as those who launder drug proceeds. Our efforts transcend international borders and we are grateful for the cooperation of our domestic and foreign partners who worked together to ensure the success of this case.”
“In the world of drug trafficking, Alvaro Lopez Tardon is a bona fide kingpin,” said George L. Piro, Special Agent in Charge FBI Miami. “His multi-million dollar cocaine enterprise spanned the globe from South America to Spain to Miami. Thus bringing him to justice required immense cooperation. As such, the FBI praises the assistance and investigative efforts of the Spanish National Police and our partners in the Organized Crime Drug Enforcement Task Force.”
Jose A. Gonzalez, IRS-CI Special Agent in Charge stated, “Today’s guilty verdict against the head of a major international narcotics trafficking and money laundering organization represents an important victory for all of us. By following the money trail, we were able to disrupt and dismantle Tardon’s drug trafficking organization and elaborate money laundering scheme and seize a significant portion of his ill-gotten gains. IRS-CI is proud to work alongside its law enforcement partners to bring criminals to justice.”
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and members of the South Florida High Intensity Drug Trafficking Area Task Force (HIDTA) for their extraordinary work in this multi-agency multi-jurisdictional investigation. Mr. Ferrer also thanked Customs and Boarder Protection, Tactical Analytical Unit, Drug Enforcement Administration, Miami Police Department and Monroe County Sherriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Tony Gonzalez, Cristina Maxwell, Daren Grove and Evelyn B. Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Indiana Man, Andrew J. Korpal, Sentenced in Child Pornography CaseRead the Press Release
ANDREW J. KORPAL, age 29, a resident of Granger, Indiana, was sentenced today for receipt of child pornography, announced United States Attorney Kenneth Allen Polite, Jr.
According to court documents, in November 2013, KORPAL was arrested by special agents with the United States Department of Homeland Security, Homeland Security Investigations (“HSI”) after they determined that KORPAL was responsible for receiving and posting videos depicting the sexual exploitation of children on the Internet.
U.S. District Judge Carl Barbier sentenced KORPAL to a term of imprisonment of ninety-seven (97) months, twelve (12) years of supervised release, and KORPAL will have to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and the U.S. Postal Inspection Service. The prosecution of this case is being handled by Project Safe Childhood Coordinator and Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
Indiana Man Convicted on Child Pornography ChargesRead the Press Release
KANSAS CITY, KAN. – An Indiana man has been convicted on federal charges of using the Internet to attempt to sexually exploit a teenage girl in Lawrence, Kan., U.S. Attorney Barry Grissom said.
A federal jury in Kansas City, Kan., returned a verdict Wednesday convicting Brett J. Williamson, 37, Ft. Wayne, Ind., on three counts of attempting to produce child pornography and three counts of attempting to entice a minor to engage in unlawful sexual activity.
During trial, prosecutors presented evidence that Williamson posed as a 15-year-old boy on a teen dating site called Tagged.Com. He befriended the Lawrence girl and coaxed her to perform sexual acts in Skype video chats.
Sentencing will be scheduled at a later date. He faces a penalty of not less than 15 years and not more than 30 years and a fine up to $250,000 on each count of attempting to produce child pornography, and not less than 10 years and not more than life and a fine up to $250,000 on each count of enticement.
Grissom commended the Lawrence Police Department and Assistant U.S. Attorney Kim Martin for their work on the case.Independence Man Pleads Guilty to $1.2 Million Arson, Insurance Fraud ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man pleaded guilty in federal court today to leading a $1.2 million arson and insurance fraud conspiracy.
Joshua Stamps, 27, of Independence, Mo., pleaded guilty before U.S. District Judge Dean Whipple to the charges contained in a Sept. 25, 2013, federal indictment. In addition to the conspiracy, Stamps pleaded guilty to using fire to commit a federal crime (mail fraud).
Stamps and his co-conspirators bought, over-insured and burned five houses, all in Kansas City, Mo. The total actual loss to insurance companies in the scheme was $434,938, while the total intended loss was $1,196,840.
Beginning in July 2007, Stamps bought houses costing from $6,500 to $15,000. Stamps used co-conspirators as straw owners for three of the houses, while other co-conspirators helped commit the arsons and/or acted as tenants so the properties could be classified as rentals.
In the conspiracy that lasted until 2013, Stamps and his co-conspirators insured the houses for much more than the purchase price, in amounts from $88,000 to $307,000. Stamps and his co-conspirators made false statements on the insurance applications, such as that the houses were rented and/or occupied, that there were valuable contents in the houses, and that the houses had been renovated.
Stamps and his co-conspirators set fire to the houses. The listed owner of the house that burned would then claim a total loss with the applicable insurance company and would falsely claim they had no knowledge of, or involvement in, the fire.
Under the terms of today’s plea agreement, Stamps must pay a money judgment of $434,938. Stamps is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to 25 years in federal prison without parole, plus a fine up to $500,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the Kansas City, Mo., Police Department.Icon Telecom and Its Owner Plead Guilty and Agree to Forfeit More Than $27 Million in Connection with Federal Wireless Telephone Subsidy ProgramRead the Press Release
Oklahoma City, Oklahoma – WES YUI CHEW, of Edmond, Oklahoma, and his company, ICON TELECOM, INC., also of Edmond, pled guilty today to money laundering and making a false statement to the Federal Communications Commission, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma. Chew and Icon have also agreed that the United States will keep more than $27 million seized during the investigation.
The current Lifeline Program, which was created in 1985, furthers the FCC’s mission to provide all Americans with access to a basic level of telephone service. Since 2005, Lifeline has provided subsidies to participating telephone companies not only for landline service, but also for wireless service for qualifying low-income customers. The Universal Service Administrative Company ("USAC") administers the Lifeline Program on behalf of the FCC and under detailed federal regulations. To pay for the program, USAC collects fees from telephone companies, which often pass the fees on to customers as “universal service charges” on monthly telephone bills.
Most participating wireless telephone companies receive a subsidy of $9.25 per month for each qualifying low-income customer. If a qualifying customer lives on "Tribal Lands," however, the company receives $34.25 per customer. Much of Oklahoma includes Tribal Lands that qualify for the higher monthly subsidy.
Before receiving reimbursement, participating telephone companies file forms with the FCC that report the number of Lifeline eligible customers they have served. Companies must also file annual reports by January 31 to certify that customers who received Lifeline service at an earlier date remain eligible for the program.
Icon Telecom, owned exclusively by Chew, participated in the wireless Lifeline Program from July 2011 until September 2013. An information filed on June 3, 2014, alleges that in September 2011, Icon reported fewer than 2,200 wireless customers who qualified for the Lifeline program. By November 2012, that number had grown to 135,364. The information explains that although it had fewer than ten full-time employees, Icon received a total of $58,283,329 through the Lifeline Program during 2011, 2012, and 2013.
Today, Chew pled guilty to Count 1, which charges him with money laundering for his transfer of $20,455,829.10 on April 9, 2013, from an Icon account to a personal account. He admitted that when he made that transfer, he knew that Icon had tens of thousands fewer customers than it had reported to the FCC for the first three months of 2013.
As the sole owner of Icon, Chew also entered a guilty to plea on behalf of the company to Count 2, which charges that Icon knowingly made a false statement to the FCC on May 13, 2013. Chew admitted that in response to a USAC audit request, Icon intentionally fabricated 58 customer recertification forms, which included fictitious signatures.
The information seeks forfeiture of $20,542,740.73, which the United States seized on October 4, 2013, from a personal account at Ally Bank that belonged to Chew. Both Chew and Icon have agreed not to contest the forfeiture of this money. They have also agreed not to contest the forfeiture of $6,485,933.82 seized on October 7, 2013, from two Icon accounts at BancFirst.
In addition to the forfeiture, Chew faces up to 10 years in prison and a fine of $250,000 or twice the amount of the criminally derived property involved in the transfer, whichever is greater. Icon faces a potential fine of $500,000.
The case against Chew and Icon are related to charges against Oscar Enrique Perez-Zumaeta, who faces a ten-count indictment filed on June 3, 2014. According to that indictment, Perez-Zumaeta used his company, PSPS Sales, to assist Chew and Icon in defrauding the FCC. Perez-Zumaeta has entered a plea of not guilty to all counts. His trial is scheduled for August 12, 2014. The public is reminded that Perez-Zumaeta is presumed innocent unless and until proven guilty.
This case is the result of an investigation by the Office of Inspector General for the Federal Communications Commission; the Federal Bureau of Investigation; and the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Chris M. Stephens and Scott E. Williams.
Reference is made to the information and other public filings for further information.
Group of Six Charged in Fraud Scheme Involving Stolen Identities of ChildrenRead the Press Release
PHILADELPHIA - An indictment was unsealed today charging six people in an identity theft and tax fraud scheme in which the identities of disabled children and foster care children were stolen, announced U.S. Attorney Zane David Memeger and IRS Criminal Investigation Special Agent-in-Charge Akeia Conner. The indictment charges Ahmed Kamara, 38, and Ibrahim Kamara, 48, both of Yeadon, PA, Musa Turay, 41, and Foday Mansaray, 38, both of Darby, PA, Gebah Kamara, 46, of Sharon Hill, PA, and Dauda Koroma, 43, of Philadelphia, PA, with conspiracy, aiding and assisting in the preparation of false tax returns, wire fraud, aggravated identity theft, and filing false individual income tax returns. All six defendants were arrested this morning.
Defendants Ahmed Kamara, Musa Turay, Ibrahim Kamara, Dauda Koroma, and Foday Mansaray worked as tax preparers at Medmans Financial Services, a tax preparation business located in South West Philadelphia. According to the indictment, Ahmed Kamara, Musa Turay, Ibrahim Kamara, Dauda Koroma, and Foday Mansaray defrauded the Internal Revenue Service by repeatedly falsifying information on tax returns. The indictment alleges that Gebah Kamara, then a social worker at Catholic Social Services, sold the defendant tax preparers the names and Social Security numbers of foster children for the purpose of creating fraudulent dependents on client tax returns. By including the false dependents, the tax preparers falsely claimed a number of credits and exemptions for their clients, which generated large fraudulent refunds, some in excess of $9,000. The tax preparer defendants charged clients up to $800 to fraudulently add a dependent on their income tax return.
If convicted, each of the defendants faces a mandatory two year prison term for aggravated identity theft consecutive to the following maximum possible sentences: Ahmed Kamara - 55 years in prison, three years of supervised release, a $1.75 million fine, and a $1,300 special assessment; Musa Turay - 61 years in prison, three years of supervised release, a $1.95 million fine, and a $1,500 special assessment; Gebah Kamara - 43 years in prison, three years of supervised release, a $1.35 million fine, and a $900 special assessment; Ibrahim Kamara - 52 years in prison, three years of supervised release, a $1.65 million fine, and a $1,200 special assessment; Dauda Koroma - 52 years in prison, three years of supervised release, a $1.65 million fine, and a $1,200 special assessment; Foday Mansaray - 43 years in prison, three years of supervised release, a $1.35 million fine, and a $900 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigation, the City of Philadelphia Office of Inspector General, and the Social Security Administration Office of Inspector General Office of Investigations. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Group of Six Charged in Fraud Scheme Involving Stolen Identities of ChildrenRead the Press Release
PHILADELPHIA - An indictment was unsealed today charging six people in an identity theft and tax fraud scheme in which the identities of disabled children and foster care children were stolen, announced U.S. Attorney Zane David Memeger and IRS Criminal Investigation Special Agent-in-Charge Akeia Conner. The indictment charges Ahmed Kamara, 38, and Ibrahim Kamara, 48, both of Yeadon, PA, Musa Turay, 41, and Foday Mansaray, 38, both of Darby, PA, Gebah Kamara, 46, of Sharon Hill, PA, and Dauda Koroma, 43, of Philadelphia, PA, with conspiracy, aiding and assisting in the preparation of false tax returns, wire fraud, aggravated identity theft, and filing false individual income tax returns. Four of the defendants were arrested this morning.
Defendants Ahmed Kamara, Musa Turay, Ibrahim Kamara, Dauda Koroma, and Foday Mansaray worked as tax preparers at Medmans Financial Services, a tax preparation business located in South West Philadelphia. According to the indictment, Ahmed Kamara, Musa Turay, Ibrahim Kamara, Dauda Koroma, and Foday Mansaray defrauded the Internal Revenue Service by repeatedly falsifying information on tax returns. The indictment alleges that Gebah Kamara, then a social worker at Catholic Social Services, sold the defendant tax preparers the names and Social Security numbers of foster children for the purpose of creating fraudulent dependents on client tax returns. By including the false dependents, the tax preparers falsely claimed a number of credits and exemptions for their clients, which generated large fraudulent refunds, some in excess of $9,000. The tax preparer defendants charged clients up to $800 to fraudulently add a dependent on their income tax return.
If convicted, each of the defendants faces a mandatory two year prison term for aggravated identity theft consecutive to the following maximum possible sentences: Ahmed Kamara - 55 years in prison, three years of supervised release, a $1.75 million fine, and a $1,300 special assessment; Musa Turay - 61 years in prison, three years of supervised release, a $1.95 million fine, and a $1,500 special assessment; Gebah Kamara - 43 years in prison, three years of supervised release, a $1.35 million fine, and a $900 special assessment; Ibrahim Kamara - 52 years in prison, three years of supervised release, a $1.65 million fine, and a $1,200 special assessment; Dauda Koroma - 52 years in prison, three years of supervised release, a $1.65 million fine, and a $1,200 special assessment; Foday Mansaray - 43 years in prison, three years of supervised release, a $1.35 million fine, and a $900 special assessment.
The case was investigated by the Internal Revenue Service Criminal Investigation, the City of Philadelphia Office of Inspector General, and the Social Security Administration Office of Inspector General Office of Investigations. It is being prosecuted by Assistant United States Attorney Karen M. Klotz.
UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT, PENNSYLVANIA
615 Chestnut Street
Suite 1250,
Philadelphia, PA 19106Contact: PATTY HARTMAN
Media Contact: 215-861-8525
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.COPIES OF NEWS MEMOS AND RELATED DOCUMENTS CAN ALSO BE FOUND AT http://www.justice.gov/usao/pae
Greeneville Oncologist and Practice Manager Sentenced for Violating Food, Drug and Cosmetic ActRead the Press Release
Cancer Clinic Purchased Unapproved Drugs for Three Years
GREENEVILLE, Tenn. – Anindya Kumar Sen, M.D., 65, and Patricia Posey Sen, 66, of Greeneville, Tenn., were sentenced on June 10, 2014, by the Honorable J. Ronnie Greer, U.S. District Court Judge, after their convictions at trial in December 2013 on charges of causing the introduction of misbranded drugs into interstate commerce in violation of the Food, Drug and Cosmetic Act (FDCA). Dr. Sen was sentenced to three years of probation and was ordered to pay a fine of $100,000. Patricia Sen, his wife and practice manager, was sentenced to four years of probation and ordered to pay a fine of $200,000.
According to evidence presented at trial, the Sens’ medical practice, East Tennessee Hematology Oncology and Internal Medicine (ETHOIM), a.k.a. East Tennessee Cancer and Blood Center, purchased over $3 million in misbranded and unapproved chemotherapy and chemotherapy supportive medications between April 2009 and March 2012. Patricia Sen purchased the drugs through a Canadian business which obtained the drugs through a United Kingdom distributor. The drugs were not approved by the Food and Drug Administration (FDA) for distribution and use in the United States, the drugs having been distributed in Turkey, India, and Europe. Many of the drugs had names different from the drugs approved for use in the United States, such as Altuzan, MabThera, and Bonviva. Patricia Sen told employees that she was purchasing drugs from Clinical Care because the drugs were cheaper, and records confirmed that the drugs from Clinical Care cost from 80 percent to more than half the cost of the FDA approved drugs. Because reimbursement by health care benefit programs such as Medicare is fixed at a percentage of the national average sale price of the drug (106 percent for Medicare), a provider can increase his profits by purchasing cheaper unapproved drugs. Evidence presented showed that the Sens received approximately $1.3 million in additional profit by purchasing the unapproved drugs.
The FDCA establishes a “closed” system to protect the safety and efficacy of drugs used in the United States, particularly prescription drugs. Domestic and foreign drug manufacturers must register with the FDA and must list with the FDA all drugs which the manufacturer intends to distribute in the United States. Drugs go through an extensive review process before being approved for distribution to assure that they are safe and effective for their intended use. Drug manufacturers are also subject to inspection of their facilities by the FDA to insure that the drugs are manufactured properly. The FDCA’s labeling requirements insure that users, particularly health care providers, have adequate information on the use of the drug, to include information on dangers and side effects. Foreign drugs not approved for use in the United States do not have on their labels and packaging the required information. The listing of FDA-approved drugs allows the FDA to quickly track drugs which may have been found to be contaminated or have some other safety risk. Purchasing unapproved drugs impedes the FDA’s ability to track the drugs being used in the United States and thwarts the approval process designed to insure that drugs used in the United States are safe and effective.
Genentech, the U.S. manufacturer of the FDA-approved bevacizumab drug product Avastin®, alerted health care providers in February 2012, that counterfeit versions of the drug had been found in the United States. A nurse at ETHOIM testified that the bevacizumab drug product at the practice, a foreign product labeled Altuzan®, bore the same lot numbers as the suspected counterfeit product. Rather than alert the FDA, Patricia Sen had the drugs mailed back to the United Kingdom on March 8, 2012, the day after news reports aired concerning the FDA’s execution of a search warrant at McLeod Cancer and Blood Center in Johnson City, Tenn.
District Judge Greer, in a written order, found that “overwhelming proof” established that Dr. Sen knew or should have known his practice was using misbranded and unapproved drugs in violation of the law and that “[t]here clearly was a risk of harm to patients from use of the unapproved drugs. Judge Greer went on to find that “Dr. Sen abandoned his duty and responsibility to assure that his patients received the drugs prescribed and in the dosage indicated to treat their life threatening conditions” and that “Dr. Sen’s conduct was reckless.”
In finding that Mrs. Sen acted with intent to defraud, Judge Greer, in the same order, found that Mrs. Sen knew that only FDA-approved drugs could be used in the practice and that there was nothing to indicate Mrs. Sen made any effort to determine whether the foreign drugs were approved. “Mrs. Sen submitted the claims to health care benefit programs with knowledge, or at least deliberate indifference, that the practice could not be reimbursed for use of unapproved drugs.”
Judge Greer also found that Mrs. Sen had obstructed justice by withholding email messages sought pursuant to a government subpoena in May 2012. Judge Greer stated “[a]n inference can easily be drawn from the e-mails that Mrs. Sen was aware of the fact that the practice had obtained counterfeit drugs, and they were returned to the United Kingdom to put them out of the reach of FDA investigators or other authorities.”
As conditions of probation, Dr. Sen must perform 100 hours of community service and Mrs. Sen must perform 200 hours of community service. Dr. Sen must also develop protocols to ensure regulatory compliance and provide those protocols to his probation officer as well as submit his practice for inspection by his probation officer to review records of drugs purchased. Mrs. Sen was prohibited from working in any medical practice without the permission of her probation officer and was prohibited from being involved in the ordering of any prescription drugs. Finally, Mrs. Sen was ordered to serve 48 hours in jail as a condition of probation.
Agencies involved in this investigation included the Federal Drug Administration Office of Criminal Investigation, Federal Bureau of Investigation, and Tennessee Bureau of Investigation. Assistant U.S. Attorney Neil Smith and Special Assistant U.S. Attorney Ben Cunningham represented the United States.
Fourth Grade Teacher Pleads Guilty to Coercing and Enticing A 15-Year-Old Girl in Sexually Explicit Online ChatsRead the Press Release
ALEXANDRIA, Va. – Corey Schock, 44, of Charlottesville, Virginia, pleaded guilty today to a federal crime relating to his participation in sexually explicit online chats with a 15-year-old girl.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Fairfax County Chief of Police; Chief Timothy J. Longo, Charlottesville Police Department and Stephan M. Hudson, Prince William County Chief of Police made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
Schock was indicted on May 29, 2014, by a federal grand jury for online coercion and enticement of a minor. Schock faces a mandatory minimum sentence of 10 years in prison and a maximum penalty of life in prison when he is sentenced on August 29, 2014.
In a statement of facts filed with the plea agreement, Schock admitted that he engaged in sexually explicit online chats with a 15-year-old girl who lived in Woodbridge, Virginia. In those online chats, Schock sent the victim several sexually explicit pictures of himself, and he requested that the victim send him sexually explicit pictures. In response, the female sent Schock pictures and videos of herself engaging in sexually explicit behavior. Based on information in other court documents, Schock engaged in similar conduct with numerous other minors over a two-year period.
This case was investigated by the FBI’s Washington Field Office, Fairfax County Police Department, Charlottesville Police Department and Prince William County Police Department. Assistant U.S. Attorney Matt J. Gardner is prosecuting the case.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former Symantec Marketing Director Indicted on Embezzlement ChargesRead the Press Release
SAN JOSE –Lena “Mickey” Jacobs Coombs was indicted yesterday afternoon on wire fraud and money laundering charges alleging that she embezzled money from her former employer, Symantec Corporation, announced United States Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
According to the indictment, Coombs was employed by Symantec as a Director of Marketing and worked at Symantec’s Lyndon, Utah facility near Salt Lake City. Between January 2010 and May 2012, Coombs allegedly used various methods to embezzle a total of over $1.34 million from Symantec. Coombs spent these embezzled Symantec funds on various personal expenses such as payments on automobiles, vacations, personal home remodeling, concerts, and childcare expenses. Coombs allegedly charged personal and other unauthorized expenses on the Symantec American Express Cards and then knowingly submitted fraudulent expense reports to disguise these charges as legitimate business expenses. Coombs also allegedly submitted fraudulent invoices falsely claiming that a shell company she had created had done marketing work for Symantec. Coombs then allegedly diverted the payments on those fraudulent invoices for her personal use.
Coombs, 47, of Highland, Utah, is scheduled to make her initial appearance pursuant to a summons in federal court in San Jose before the Honorable Paul Grewal, United States Magistrate Judge, on July 11, 2014, at 8:30 a.m.
The maximum statutory penalty for wire fraud, in violation of 18 U.S.C. § 1343, is twenty years in prison, and a fine of $250,000, plus restitution. The maximum statutory penalty for money laundering, in violation of 18 U.S.C. § 1957, is ten years in prison and a fine of $250,000, plus restitution.
Any sentence following conviction would, however, be determined by the court only after considering the Federal Sentencing Guidelines, which take into account a number of factors, and would be imposed in the discretion of the Court. An Indictment contains only allegations against a defendant and, as with all defendants, Coombs must be presumed innocent unless and until convicted.
Assistant U.S. Attorney Joseph Fazioli is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI.
Former Ku Klux Klan Officer Pleads Guilty to Committing Perjury During Investigation into Cross-BurningRead the Press Release
Pamela Morris, former secretary of a chapter of the Ku Klux Klan (KKK) in Ozark, Alabama, pleaded guilty today to committing perjury during a grand jury’s investigation into a racially motivated cross-burning in the U.S. District Court for the Middle District of Alabama.
Morris, 46, admitted in plea documents that on Feb. 20, 2013, she lied to a federal grand jury looking into a cross-burning committed by Steven Joshua Dinkle, Morris’s son and the leader of the local KKK, and Thomas Smith, another KKK member. On May 8, 2009, Dinkle and Smith burned a six-foot tall cross at the entrance to an African-American neighborhood in Ozark to threaten and intimidate residents. In sworn testimony before the grand jury, Morris made several false statements, including denying that she had been the secretary of the chapter or involved with the KKK at all.
In pleading guilty, Morris admitted that she had been an officer of the KKK and that her testimony denying any connection to the organization was false. She further acknowledged that she knew Dinkle had committed the cross-burning. In addition, Morris admitted that she testified falsely to prevent the grand jury from learning about other KKK members who had information relevant to the investigation.
A sentencing date has not yet been scheduled. Morris faces a statutory maximum sentence of five years in prison and a $250,000 fine.
Dinkle pleaded guilty on Feb. 3, 2014, to hate crime and obstruction of justice charges related to the cross-burning. On May 15, 2014, he was sentenced to serve 24 months in prison. Smith, Dinkle’s co-conspirator, pleaded guilty to conspiracy to interfere with housing rights on Dec. 6, 2013. He is scheduled to be sentenced on Aug. 19, 2014.
“Defendant Morris lied under oath blatantly and repeatedly to hinder an investigation into a cross-burning that was committed to intimidate an entire community,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department will continue to hold accountable not only those who commit such acts of violence, but also those who lie and obstruct the investigation into these crimes of intimidation.”
“Ms. Morris lied to the grand jury in an attempt to protect herself and to protect a cross burner,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “When someone testifies in court they swear to tell the truth. Unfortunately, Ms. Morris lied. For our system of justice to protect the rights of all, those who testify before the grand jury must provide accurate and honest information. If someone fails to tell the truth while under oath, we will prosecute them.”
This case is being investigated by the FBI with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
Former Ku Klux Klan Officer Pleads Guilty to Committing Perjury During Investigation into Cross-BurningRead the Press Release
Montgomery, Alabama - Pamela Morris, former secretary of a chapter of the Ku Klux Klan (KKK) in Ozark, Alabama, pleaded guilty today to committing perjury during a grand jury’s investigation into a racially motivated cross-burning in the U.S. District Court for the Middle District of Alabama.
Morris, 46, admitted in plea documents that on Feb. 20, 2013; she lied to a federal grand jury looking into a cross-burning committed by Steven Joshua Dinkle, Morris’s son and the leader of the local KKK, and Thomas Smith, another KKK member. On May 8, 2009, Dinkle and Smith burned a six-foot tall cross at the entrance to an African-American neighborhood in Ozark to threaten and intimidate residents. In sworn testimony before the grand jury, Morris made several false statements, including denying that she had been the secretary of the chapter or involved with the KKK at all.
In pleading guilty, Morris admitted that she had been an officer of the KKK and that her testimony denying any connection to the organization was false. She further acknowledged that she knew Dinkle had committed the cross burning. In addition, Morris admitted that she testified falsely to prevent the grand jury from learning about other KKK members who had information relevant to the investigation.
The sentencing hearing has yet to be set for Morris. She faces a statutory maximum sentence of five years in prison and a $250,000 fine.
Dinkle pleaded guilty on Feb. 3, 2014, to hate crime and obstruction of justice charges related to the cross burning. On May 15, 2014, he was sentenced to serve 24 months in prison. Smith, Dinkle’s co-conspirator, pleaded guilty to conspiracy to interfere with housing rights on Dec. 6, 2013. He is scheduled to be sentenced on Aug. 19, 2014.
“Defendant Morris lied under oath blatantly and repeatedly to hinder an investigation into a cross-burning that was committed to intimidate an entire community,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department will continue to hold accountable not only those who commit such acts of violence, but also those who lie and obstruct the investigation into these crimes of intimidation.”
“Ms. Morris lied to the grand jury in an attempt to protect herself and to protect a cross burner," stated George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. "When someone testifies in court they swear to tell the truth. Unfortunately, Ms. Morris lied. For our system of justice to protect the rights of all, those who testify before the grand jury must provide accurate and honest information. If someone fails to tell the truth while under oath, we will prosecute them."
This case is being investigated by the FBI with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
PRESS CONTACT: Clark Morris
Email: [email protected]
Telephone: (334) 551-1755
Fax: (334) 223-7617Former Goodwill Employee Sentenced to Federal Prison for Making an Incendiary DeviceRead the Press Release
ALBUQUERQUE – Daniel Edward Aaron Morgan, 39, of Albuquerque, N.M., was sentenced this afternoon to a year and a day in federal prison followed by two years of supervised release for violating the federal firearms laws by unlawfully making an incendiary device. Morgan also was ordered to pay $2,319.56 in restitution to Goodwill Industries of New Mexico (Goodwill), the victim of his criminal conduct.
Morgan entered a guilty plea to a felony information charging him with unlawfully making an incendiary device on Nov. 6, 2013. In his plea agreement, Morgan admitted unlawfully making an incendiary device on Sept. 12, 2011. Morgan was remanded into federal custody after entering his guilty plea and has been in custody since that time.
Court filings reflect that at the time Morgan committed the crime for which he was sentenced, he was a manager at Goodwill store in Albuquerque. Morgan admitted embezzling money belonging to Goodwill which he was supposed to deposit at the night deposit box of a U.S. Bank branch in Albuquerque and using the money to gamble. In an effort to conceal his embezzlement activity, Morgan set the Goodwill bank deposit bag on fire before placing it in the night deposit box of the U.S. Bank with the expectation that the bag would burn and Goodwill would not be able to learn that he failed to make the bank deposit. Under federal law, Morgan’s actions constituted the manufacture of an incendiary device. The device, however, did not have enough oxygen and flammable material to set the bank on fire.
This case was investigated by the Albuquerque office of the FBI and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Louis E. Valencia.Former Financial Broker Sentenced to 15 Years in Prison for Wire FraudRead the Press Release
United States Attorney James L. Santelle announced that Lisa A. Lewis (age: 49) of Green Bay, Wisconsin, was sentenced in federal court in Green Bay for wire fraud. Chief United States District Judge William C. Griesbach sentenced Lewis to a fifteen-year term of imprisonment and ordered her to pay in excess of $2 million in restitution to approximately thirteen elderly investors. Judge Griesbach also placed Lewis on supervised release for three years and ordered the forfeiture of a 2013 Chevrolet Camaro and Lewis’ interest in several residences to partially offset the restitution amount.
Lewis, a former financial broker, was sentenced following her earlier guilty plea to the charge of wire fraud, as part of a larger scheme, occurring over the course of approximately seven years, to defraud the investors. Generally, the scheme involved Lewis creating a joint account under her name and that of the victim-most often unbeknownst to the victim. Without authorization, Lewis then transferred funds from the victim’s individual account, to the joint account, and then to one of Lewis’ personal accounts where she used the funds for personal expenses unrelated to the victim’s financial interest. Such unauthorized expenditures included the purchase of the Camaro, and use of investor funds to gamble at local casinos and pay personal expenses. As stated by many of the investors through their victim-impact statements, Lewis not only stole from their hard earned retirement accounts, but she did so after befriending the investors and ingratiating herself to them.
This case was investigated by the Federal Bureau of Investigation and the Brown County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney William Roach.
Former City of Miami Police Sergeant Pleads Guilty to Criminal ContemptRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Manuel Orosa, Chief, City of Miami Police Department (MPD), announce that former City of Miami Police Sergeant Raul Iglesias, 41, Miami, pled guilty to one count of criminal contempt for violating a United States District Court protective order in violation of Title 18, United States Code, Section 401(3).
In 2010, the FBI and City of Miami Police Department Internal Affairs Unit initiated an investigation of Iglesias after receiving an anonymous letter that indicated Iglesias was stealing money and drugs from his arrests. At the time, Iglesias was assigned to the Crime Suppression Unit (CSU) which targeted neighborhoods plagued with narcotics trafficking and violent crime. It was later discovered that CSU detectives in Iglesias’ unit wrote the anonymous letter.
On July 19, 2012, a federal grand jury returned a nine-count indictment against Iglesias, charging him with conspiracy, violation of civil rights, possession with intent to distribute cocaine, obstruction of justice, and making false statements. As part of the discovery in that case, the government turned over to the defense a number of consensual recordings made by cooperating CSU detectives with Iglesias. In order to protect the cooperating CSU detectives and other witnesses from intimidation and harassment, the government moved for a protective order to prevent the dissemination of the discovery materials outside of the defense team which was later granted by the Court.
Following trial, a federal jury found Iglesias guilty on eight of the nine counts in the indictment. Iglesias was later sentenced to 48 months in prison, and was ordered to surrender to the Federal Bureau of Prison on April 26, 2013, to commence serving his sentence. However, on April 24, 2013, less than two days before he was required to surrender to begin serving his sentence, Iglesias posted protected audio recordings of the undercover conversations made by cooperating CSU detectives on YouTube and LEOAFFAIRS, an internet message board which catered to law enforcement. Both the YouTube and LEOAFFAIRS postings were titled “Miami Mice” and were posted by Iglesias using the screen name of “Chivas Regal.” After the protected undercover recordings became public, various unknown individuals using fictitious screen names posted threatening or derogatory comments against the cooperating CSU detectives on the LEOAFFAIRS message board. The CSU detectives also found derogatory notes on their vehicles and in their mail boxes at work, and officers stopped responding to their calls to provide backup.
Sentencing is scheduled for September 5, 2014, at 10:30 a.m., before U.S. District Judge Ursula Ungaro. At sentencing, Iglesias faces life in prison and fines of up to $250,000.
Mr. Ferrer commended the investigative efforts of the FBI, MPD and the Miami Area Corruption Task Force. This case is being prosecuted by Assistant U.S. Attorney Kimberly Selmore.
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 Bank Employee Sentenced to Federal Prison for Bank FraudRead the Press Release
McALLEN, Texas - A former bank officer with Texas State Bank has been ordered to federal prison for defrauding her former employer, announced United States Attorney Kenneth Magidson. Sondra Tredaway, 65, of Mission, was the former manager of the Texas State Bank branch located in McAllen. She pleaded guilty to one count of bank fraud on June 7, 2011.
Today, Chief U.S. District Judge Ricardo H. Hinojosa handed Tredaway a sentence of 41 months in federal prison and further ordered she pay restitution to Texas State Bank in the amount of $4,496,455.83. The prison term will be immediately followed by a two-year-term of supervised release.
Tredaway had admitted she defrauded Texas State Bank, using her position as branch manager to defraud the bank of approximately $2.4 million. She used the names and personal information belonging to several individuals, without their permission, to create more than 58 fictitious loans beginning in 1998 through 2010. Tredaway further admitted she used the loan proceeds for her own benefit. The fraud was discovered when BBVA Compass Bank purchased Texas State Bank and began reviewing their loan records.
After handing down the sentence today, Judge Hinojosa permitted Tredway to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by the FBI. Assistant United States Attorney Robert Wells Jr. prosecuted the case.Flint Tax Return Preparer Pleads Guilty to Aiding and Assisting in Presenting False Tax ReturnsRead the Press Release
A resident of Flint, Michigan, pleaded guilty on June 5, 2014, to aiding and assisting in the preparation and filing of fraudulent tax returns with the Internal Revenue Service, United States Attorney Barbara McQuade announced today. McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Charles Sander, III, pleaded guilty before U.S. District Judge Terrence G. Berg.
According to court records, Sanders owned and operated SBC Tax Service Corporation, a return preparation business in Flint, Michigan. Sanders falsely held himself out to be a Certified Public Accountant. For the tax years 2008 and 2009, Sanders prepared over 200 individual income tax returns, along with their accompanying schedules that were then submitted to the Internal Revenue Service. An audit of at least 36 of the returns he filed for 2008 and 2009 contained false and fraudulent information such as federal fuel tax payments, medical deductions, personal and real property tax deductions, mortgage interest, charitable contributions and unreimbursed employee expenses. These false items resulted in higher refund payments to Sanders’ clients. Sanders kept a fee of between $900 and $4,000 per tax return.
Sanders’ sentencing was set for October 9, 2014 at 2:30 pm. He faces a maximum term of imprisonment of three years and a maximum fine of $250,000. In addition, he will be required to pay restitution to the IRS.
The case was investigated by special agents of the IRS Criminal Investigation Division.
Final Defendant Sentenced In‘operation Frozen Freight’Read the Press Release
PHOENIX – On June 9, 2014, John Kweku Eshun, 52, of Ellenwood, Ga., was sentenced by U.S. District Judge G. Murray Snow to 41 months in prison. Eshun is the 12th and final defendant sentenced in Operation Frozen Freight – a multi-year investigation conducted by the Organized Crime Drug Enforcement Task Force (OCDETF). On Aug. 10, 2010, 12 defendants were charged with running a conspiracy that used a network of front businesses and warehouses, residences, cars, and semi-tractor trailers to package and ship loads of marijuana from Arizona to Ohio, then to package, ship or deposit cash proceeds from those sales. Charges in the initial and superseding indictments included multiple counts of conspiracy to possess with intent to distribute marijuana, money laundering, promotional money laundering, illegal financial transactions to further the conspiracy. The conspiracy used aliases and false business names such as “Sea of Cortez Seafood & Produce Distribution, LLC”, “Wedoito’s Hotdogs, LLC”, “AB Trucking”, and others.
The organization is alleged to have trafficked at least 50,000 pounds of marijuana and one to two tons of cocaine, generating proceeds in excess of $34 million. Federal agents seized approximately $700,000 in assets, including numerous vehicles (including a semi-tractor-trailer), guns, jewelry, and a house in the course of the investigation.
The defendants received the following sentences:
Jonathan Ortiz Troncoza, 41, of Tucson, Ariz., was sentenced to 120 months in prison.
David Ortiz Troncoza, 44, of Tucson, Ariz., was sentenced to 70 months in prison.
John Kweku Eshun, 52, of Ellenwood, Ga., was sentenced to 41 months in prison.
Edward Christopher Morales, 43, of Tucson, Ariz., was sentenced to 150 months in prison.
Shawn Handell Holloway, 43, of Cleveland, Ohio, was sentenced to 144 months in prison.
Manuel Martin Garcia, 37, of Tucson, Ariz., was sentenced to 60 months in prison.
Robert D. Wilson, 33, of Euklid, Ohio, was sentenced to 24 months in prison.
Yvonne Teresa Troncoza-Martinez, 40, of Tucson, Ariz., was sentenced to probation.
Kathy Ann Troncoza-Valenzuela, 43, of Tucson, Ariz., was sentenced to probation.
Manuel Alejandro Alvarez, 39, of Tucson, Ariz., was sentenced to time served.
Juan Fonseca-Cantallops, 49, of Buckeye, Ariz., was sentenced to probation.
Angelica C. Mendivil, 41, of Tucson, Ariz., was sentenced to probation.
The investigation was conducted by the U.S. Drug Enforcement Administration and the Internal Revenue Service, and included the participation of the U.S. Postal Inspection Service, U.S. Marshal’s Service, U.S. Immigration and Customs Enforcement, U.S. Border Patrol, the Federal Bureau of Investigation, U.S. Alcohol, Tobacco, Firearms & Explosives, and the Arizona Department of Public Safety. Local police agencies that assisted include the Mesa, Phoenix, Glendale, Tempe and Tucson Police Departments; the Pinal County Sheriff’s Office and the Arizona Attorney General’s Office. The investigation was also made possible by the assistance of the Las Vegas Metropolitan Police Department, Imperial Police Department, U.S. Attorney’s Offices in Arizona, Nevada and Ohio and various DEA offices throughout the U.S. and in Mexico. The National Drug Intelligence Center (NDIC) provided extensive analysis of documents seized during the investigation.
The prosecution was handled by Karen S. McDonald and Brian Larson, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-10-1126-PHX-GMS
RELEASE NUMBER: 2014-032_ EshunFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Federal Jury Convicts Owner of Healthcare Company in Multi-million Dollar Fraud SchemeRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that a federal jury returned unanimous verdicts of guilty this afternoon against AHAOMA BONIFACE OHIA, age 60, of Missouri City, Texas, on all seven counts of wire fraud charged in the indictment against him.
The verdict follows a four day jury trial before U.S. District Judge Shelly Dick who remanded Ohia into custody pending sentencing. As a result of his convictions, Ohia faces up to 140 years in prison, up to three years of supervised release following imprisonment, a fine up to $1.75 million, restitution to victims, and forfeiture of the proceeds of his criminal activity. His sentencing date has not yet been set.
Ohia was convicted of engaging in a multi-million dollar scheme to defraud Medicare from January 2007 through February 2009 through his company, All-Star Medical Supplies. The evidence at trial established that Ohia would cause All-Star to submit claims to Medicare for durable medical equipment purportedly provided to Medicare beneficiaries, which falsely and fraudulently represented that (1) the equipment was medically necessary, (2) the equipment had been ordered for the beneficiaries by a physician, and (3) that All-Star had in fact provided the beneficiaries with the equipment reflected in the claims. In some cases, Ohia would then cause All-Star to provide the beneficiaries with equipment that was different, and far less expensive, then the equipment for which Ohia had sought reimbursement from Medicare. In other cases, All-Star did not provide any equipment at all.
U.S. Attorney Green stated: “Today’s verdict should serve as a reminder that fraudsters will find no safe haven in the Middle District of Louisiana. My appreciation to all the prosecutors and agents who handled this important matter and who will continue to be tasked with aggressively pursuing those who defraud the Medicare program.”
The case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services (DHH-OIG), the Federal Bureau of Investigation (FBI), and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and was brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice. This case is being prosecuted by Assistant U.S. Attorney Alan A. Stevens, who serves as a Deputy Chief of the Criminal Division, and Assistant U.S. Attorney Cam Le.
Federal Inmate in Ashland Sentenced to 60 Months for Conspiring with Prison Guard to Smuggle Prohibited Items into PrisonRead the Press Release
ASHLAND, KY -An inmate at the Federal Correctional Institute (FCI) in Ashland, Ky., has been sentenced to 60 months in prison for conspiring with a correctional officer and others to smuggle prohibited items into the prison.
On Monday, June 9, U.S. District Judge David L. Bunning sentenced 33-year-old Gary Musick, of Newport, Tenn., for conspiracy to introduce contraband into a correctional facility and possession of contraband. The sentence will run consecutivly to the 235 month sentence that Musick is currently serving for other criminal convictions.
Musick was convicted of the contraband charges, by a jury, in March 2014. According to testimony at trial, Musick’s co-defendant and former girlfriend, Cindy Gates, and other female associates of Musick, routinely visited the FCI and delivered prohibited items, such as tobacco, marijuana, and nude photographs, to correctional officer James Lewis. Lewis subsequently provided the items to Musick, in exchange for payment from Gates and others.
The evidence at trial established that Musick also sold the prohibited items to other inmates. In some instances, he directed inmates to have money sent to an address outside of the institution as payment. The conspiracy lasted from December 2010 until February 2012.
Lewis and Gates have previously been convicted and sentenced for their roles. Lewis was sentenced to 15 months in prison and Gates received probation.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and John F. Oleskowicz, Special Agent in Charge, Department of Justice Office of the Inspector General, Chicago Field Office, jointly announced the sentence.
The investigation was conducted by the Department of Justice Office of the Inspector General. Assistant U.S. Attorneys Edwin J. Walbourn, III and Wade T. Napier prosecuted this case on behalf of the federal government.