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Thursday 12 June 2014
Federal District Court Shut Down California Tax Return PreparersRead the Press Release
A federal court in Fresno, California, has permanently barred Ken Mendoza and Alice Mendoza from preparing federal tax returns for others, the Justice Department announced today. Ken Mendoza and Alice Mendoza, who operated under the business name “Mendoza Business Services” in Fresno, consented to the civil injunction order, which was signed by U.S. District Judge Lawrence J. O’Neill in the U.S. District Court for the Eastern District of California.
According to the complaint, the Mendozas improperly understate their customers’ federal tax liabilities by fabricating expenses, claiming false or inflated credits, particularly educational credits, and deducting personal expenses of their customers. In total, the complaint alleges that the loss to the U.S. Treasury from the Mendozas’ activities could be as much as $2.8 million for tax years 2010 through 2011. The complaint also alleges that many of the Mendozas’ customers may owe additional tax, interest and penalties because of the improperly prepared returns.
In addition to barring the Mendozas from preparing or filing federal tax returns for others, the court also enjoined anyone acting in concert with the Mendozas from preparing or filing federal tax returns, and prohibited the Mendozas from requesting or directing the preparation of federal tax returns for others. The court required the Mendozas to contact all persons for whom they prepared a federal tax return since Jan. 1, 2008, to inform all such persons of the permanent injunction entered against them.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Elyria Man Sentenced to Life in Prison for Human TraffickingRead the Press Release
An Elyria man was sentenced to life in prison after forcing four females, including a 16-year-old girl, to have sex for money, law enforcement officials said.
Jeremy Mack, 38, of Elyria, was found guilty by a jury in February on nine counts, including human trafficking, drug crimes and obstruction of justice following a trial before U.S. District Court Judge Sara Lioi.
“Jeremy Mack preyed upon vulnerable women and held them in conditions akin to modern-day slavery,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “His conduct was offensive to everything this community and this country stand for, but his victims persevered, survived and exposed his twisted world of forced sex, violence and drug trafficking. Jeremy Mack earned every day of this sentence.”
“Preying on, coercing and forcing children into a world of drugs and sex is simply despicable and will not be tolerated,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office. “This sentence clearly demonstrates that law enforcement and the courts will work together to ensure those responsible for such horrific crimes pay for their actions.
“This is an example of local police and federal law enforcement working together to make our community safer,” Elyria Police Chief Duane Whitely said.
Ashley Onysko, 24, of Avon Lake, previously pleaded guilty to charges related to her role in the conspiracy. She was sentenced to 30 months in prison earlier this week.
Between December 2012 and April 9, 2013, Mack and Onysko conspired together to provide heroin or cocaine to four females and then, after the victims incurred drug debts, used force, threats of force, fraud and coercion to compel them to engage in commercial sex acts.
They did this, in part, by posting photographs of the females on backpage.com on a user account that Mack and Onysko created, according to the indictment.
In March 2013, Victim 2, a 16-year-old minor, went to Mack’s residence in Elyria after school, at which time Mack gave her cocaine. Mack later told and caused others to tell Victim 2 that she needed to engage in commercial sex acts. She did, after which she turned over all proceeds to Mack, according to the indictment.
From March through April 9, 2013, Mack brandished a firearm in front of three of the females. He choked and threatened to kill one of the female victims, according to the indictment.
Count 1 charged Mack with conspiring with Onysko to force the four victims to engage in commercial sex acts by using force, threats of force, fraud and coercion
Counts 2 through 5 charged Mack with forcing each of the four victims to engage in commercial sex acts by using force, threats of force, fraud and coercion.
Count 6 and 7 charged Mack with distribution of heroin and cocaine, respectively.
Count 8 and 9 charged Mack with obstruction of justice. Count 8 charged Mack with advising his son, identified only as T.L., to “stick with the script” when testifying before the Federal Grand Jury. Count 9 charged Mack with providing money to Onysko in May 2013 to purchase personal items for Victim 4 and to advise the victim not to “flip”. He also told the victim not to speak with FBI agents attempting to contact her and advising her not to make incriminating statements against Mack, according to the indictment.
This case is being prosecuted by Assistant United States Attorneys Bridget M. Brennan and Carole Skutnik following an investigation by the FBI and Elyria Police Department.
El Departamento de Justicia Llega a un Acuerdo sobre una Queja de Discriminación Relacionada con Inmigración Contra Commercial Cleaning SystemsRead the Press Release
WASHINGTON - El Departamento de Justicia llegó a un acuerdo hoy con Commercial Cleaning Systems, una empresa de servicios de limpieza con sede en Denver. El acuerdo resuelve los reclamos de que la empresa discriminó en contra de empleados que están autorizados a trabajar en los Estados Unidos pero que no son ciudadanos estadounidenses, en violación de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).
La investigación del departamento se inició basada en una remisión del Servicio de Ciudadanía e Inmigración de los Estados Unidos. La investigación encontró que Commercial Cleaning Systems requirió que empleados que no son ciudadanos estadounidenses, pero que cuentan con autorización de trabajo, presentaran documentos específicos emitidos por el Departamento de Seguridad Nacional para probar su elegibilidad de empleo, mientras que a los ciudadanos estadounidenses se les permitía presentar los documentos de su preferencia. La provisión anti-discriminación de la INA prohíbe que los empleadores impongan cargas documentales adicionales a los empleados con autorización de trabajo durante el proceso de contratación y verificación de elegibilidad de empleo por causa de su ciudadanía u origen nacional.
Conforme al acuerdo de resolución, Commercial Cleaning Systems pagará $53,500 en sanciones civiles a los Estados Unidos y establecerá un fondo de $25,000 con propósito de compensar a los individuos quienes hayan perdido salario como resultado de las prácticas discriminatorias documentales de la compañía. Además, la compañía estará sujeta a un período de monitoreo de un año de sus prácticas de verificación de elegibilidad de empleo.
"Discriminar en contra de empleados autorizados a trabajar por no ser ciudadanos viola la ley federal y el Departamento de Justicia está comprometido a hacer cumplir con esta ley," dijo la Sub-Procuradora Interina de la División de Derechos Civiles, Jocelyn Samuels. "Aplaudimos a Commercial Cleaning Systems por trabajar cooperativamente con la división para resolver este asunto."
La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con Inmigración (OSC por sus siglas en inglés) es responsable de exigir el cumplimiento de la provisión anti-discriminación de la INA. La ley también prohíbe, entre otras cosas, la discriminación por causa del estado de ciudadanía y origen nacional en la contratación, despido y reclutamiento o referencia por comisión. El caso fue manejado por la abogada Linda White Andrews.
Para más información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración o para registrarse en un seminario de internet gratis, llame a la línea directa para trabajadores de la OSC al 1-800-255-7688 (1-800-237-2515, TTY para las personas con dificultades auditivos, llame a la línea directa para empleadores de la OSC al 1-800-255-8155 (1-800-237-2515, TTY) para las personas con dificultades auditivos, o visite el sitio web en www.justice.gov/crt/about/osc.
Los solicitantes o trabajadores que creen que han sido sometidos a requisitos documentales distintos o discriminación por causa de su ciudadanía, estatus de inmigración u origen nacional, en la contratación, despido, o reclutamiento o referencia por comisión, deben comunicarse con la línea directa para trabajadores indicada arriba para recibir ayuda.
East St. Louis Man Convicted in Ups Truck RobberyRead the Press Release
Case was another victory for United States Attorney Wigginton’s Hobbs Act Armed Robbery Initiative
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that a jury has found Anthony T. Moore guilty of robbing a UPS truck at gunpoint on December 17, 2012. The guilty verdict was announced on Wednesday, June 11, 2014, in U.S. District Court in East St. Louis, Illinois, following a 3-day jury trial.
Moore, 22, is scheduled to be sentenced on October 10, 2014 at 9:00 a.m. in U.S. District Court in East St. Louis, Illinois. Moore faces a potential prison sentence of up to 20 years.
According to evidence presented at trial, Moore hijacked a UPS truck in East St. Louis at gunpoint and forced the driver to move the truck to a deserted dead-end street in Washington Park, Illinois. Moore and two accomplices then stole the packages which were inside the truck.
At trial, the UPS driver testified that “I thought it was the last day of my life, and that I would never see my kids again. I just asked the Lord to receive my soul. I was that sure he was going to kill me.”
After the robbery, Moore shot a 15-year-old acquaintance in the back of the head, because Moore believed the juvenile could implicate him in the UPS truck robbery. Moore was convicted last year in St. Clair County Circuit Court for that shooting, and he was subsequently sentenced to 34 years in state prison for Attempted Murder.
The Armed Robbery count is a federal “Hobbs Act Robbery.” The Hobbs Act makes it a crime to obstruct, delay, or affect interstate commerce by robbery, and is used by United States Attorney Wigginton’s office as a way to combat armed robbery in the Southern District of Illinois. “This conviction is just the latest in a series of federal prosecutions I have initiated, as part of our efforts to send a clear message to these extraordinarily dangerous gunmen who commit armed robberies, that they will face harsh federal penalties for their crimes.” said Wigginton. “I will continue to use every available federal resource to try to ensure the safety of the citizens of Southern Illinois.”
The investigation which resulted in Moore’s arrest and conviction was conducted by the FBI and the Illinois State Police.
The case was tried by Assistant United States Attorneys Steven Clark and Robert Garrison.
District Man Sentenced to 15 Years in Prison for Armed Carjacking in Southeast WashingtonVictims Were in the Process of Moving into Apartment When AttackedRead the Press Release
WASHINGTON – Rahmil Williams, 20, of Washington, D.C., was sentenced today to 15 years in prison for his role in an armed carjacking that took place last summer outside an apartment building in Southeast Washington, U.S. Attorney Ronald C. Machen Jr. announced.
Williams was found guilty by a jury in February 2014 of armed carjacking, armed robbery, assault with a dangerous weapon, and related weapons offenses, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Milton C. Lee.
According to the government’s evidence, at about 12:50 a.m. on July 8, 2013, Williams and three others, all wearing masks and armed with handguns, approached two men who had parked their Ford Mustang convertible in an alley behind their new apartment in the 3500 block of B Street SE. The victims, who were in the process of moving, were bringing boxes inside.
Williams and the other assailants took the victims’ cash, phones, and keys. Three of the attackers then entered the Mustang and drove away. The victims called the police, and a short time later, officers spotted the stolen Mustang approximately ten blocks from the apartment.
When officers tried to order the car to stop, the driver of the Mustang took off, leading to a high-speed chase that reached 100 mph and into Prince George’s County, Md. With officers in pursuit, the Mustang crashed at a traffic circle, and the three assailants fled into a wooded area along the highway. Officers with the Prince George’s County Police Department apprehended Williams and a second person a few blocks away. Williams’s DNA was found in the car and on a face mask recovered from his flight path.
A 16-year-old co-defendant, who was charged as an adult, pled guilty in February 2014 to an armed robbery charge. He has not yet been sentenced.
In announcing the sentence, U.S. Attorney Machen commended the work of those who investigated the case from the Metropolitan Police Department and the Prince George’s County Police Department. He also expressed appreciation for the assistance provided the District of Columbia Department of Forensic Sciences. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates James Brennan and Wanda Queen, Supervisory Victim/Witness Specialist Michael Hailey; Paralegal Specialists Richard Cheatham, Theresa Nelson, and Antoinette Sakamsa; Litigation Technology Specialist Leif Hickling; and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. Finally, he commended the work of Assistant U.S. Attorney Brandon S. Long, who prosecuted the case.
14-133Darby Tax Preparer Charged with Using Foster Childrens' Identities in Tax SchemeRead the Press Release
Momolu Sirleaf, 34, of Darby, PA, is charged by indictment, unsealed today, in a scheme to defraud the Internal Revenue Service by stealing the identities of foster children, announced United States Attorney Zane David Memeger and IRS Special Agent-in-Charge Akeia Conner. Sirleaf is charged with six counts of aiding or assisting in the preparation of false federal income tax returns, six counts of wire fraud, and eight counts of aggravated identity theft. The indictment alleges that, between January 2010 and February 2012, Sirleaf obtained the names and Social Security numbers of children within the foster care system to falsely use as dependents on his clients’ income tax returns. Sirleaf was arrested this morning.
Sirleaf owned and operated I.E.S. Tax Services, a tax preparation business located in Darby, PA, that prepared and electronically filed, via the Internet, income tax returns for clients. According to the indictment, Sirleaf charged clients an extra fee for the use of each dependent’s identity, or withheld an additional fee from the client’s refund amount to pay for the false dependent. It is further alleged that by adding the false dependents, the defendant generated false tax refunds for his clients, some in excess of $8,000.
If convicted, the defendant faces a maximum possible sentence of 154 years in prison, plus a mandatory consecutive sentence of two years in prison, three years of supervised release, a $4.1 million fine, and a $2,000 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 DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Criminal Immigration Charges Brought Against Two Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania and the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO), announced today that charges in two unrelated cases were brought against the following persons in Harrisburg on June 11, 2014.
Agustin Lopez-Velasco, age 38, a native and citizen of Mexico has been charged with illegal reentry into the United States and fraud and misuse of documents.
According to United States Attorney Peter Smith, Lopez-Velasco, in the United States illegally, was charged in a two-count indictment by a federal grand jury in Harrisburg yesterday.
The indictment alleges that Lopez-Velasco, an alien previously arrested and deported from the United States in March 2011, reentered the United States illegally, and knowingly possessed a fraudulent permanent resident card when apprehended in Franklin County, Pennsylvania.
If convicted, Lopez-Velasco faces a maximum sentence of up to 12 years’ imprisonment and a $500,000 fine.
Jose Galarza-Buestan, age 29, a native and citizen of Ecuador, in the United States illegally was charged in a one-count indictment by a federal grand jury in Harrisburg today.
The indictment alleges that on or before May 14, 2014, Galarza-Buestan did knowingly possess, use, or attempt to use a fraudulent social security card and birth certificate during an encounter with immigration officials in York, York County, Pennsylvania.
If convicted, Galarza-Buestan faces a maximum sentence of up to ten years’ imprisonment and a $750,000 fine.
Both investigations were conducted by ICE ERO. They are being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Career Offender Sentenced for Armed Bank RobberyRead the Press Release
ATLANTA – Steven L. Jackson has been sentenced today to 24 years and six months in prison for recidivist armed bank robber and brandishing a firearm during a crime of violence.
“Jackson terrorized the bank employees, forcing them to lie face down on the floor of the bank while he pointed a gun at them,” said United States Attorney Sally Quillian Yates. “His long history of committing violent crimes merited the lengthy sentence that he received, and his removal from our community will make the Atlanta area a safer place.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “The streets of our community will be much safer with today’s sentencing of Mr. Jackson as a career offender. The FBI will continue its investigative focus toward such repeat offenders that plague our communities and burden our criminal justice resources that have to deal with them.”
According to United States Attorney Yates, the charges, and other information presented in court: On Thursday, April 9, 2009, at approximately 8:20 a.m., Jackson entered BB&T Bank located at 6343 Roswell Road in Sandy Springs, Ga. He entered the bank through a rear window prior to the bank opening for the day, but after employees had arrived. Jackson placed tape on the glass of one of the rear windows of the bank and then broke the glass. Once inside the bank, Jackson walked to the branch manager’s office and pointed a gun at him. Jackson ordered the manager and two more bank employees to take him to the vault where he stole $16,180.30 in United States currency. After taking the money, Jackson forced the employees to lie face down on the floor of the bank while he fled the scene.
Because Jackson has several prior convictions relating to robbery, he was sentenced as a Career Offender. His prior convictions include the following:
- A May 2, 1986, sentence of four years of imprisonment for robbery, arising from an October 29, 1984, arrest;
- A July 30, 1999, sentence of twenty years of imprisonment for robbery, arising from an October 30, 1996, arrest; and
- An October 10, 1997, sentence of eight years of imprisonment for conspiracy to commit armed robbery, arising from a May 9, 1997, arrest.
Jackson was sentenced by United States District Court Judge Steve C. Jones to 24 years and six months of imprisonment, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $16,180.30. Jackson pleaded guilty on November 2, 2012, to the offenses of armed bank robbery, and brandishing a firearm during a crime of violence.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Richard S. Moultrie, Jr. prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Canton Man Charged with Tax ViolationsRead the Press Release
A five-count criminal information was filed charging a Canton man with attempting to evade nearly $200,000 in taxes by making false statements to the Internal Revenue Service and paying creditors other than IRS, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge of the IRS' Cincinnati Field Office.
Frederick C. Berndt, 39, attempted to evade the payment of a large part of income tax due for calendar years 2003, 2004 and 2006, in the amount of approximately $193,359, according to the information.
“The privilege of living well in the United States carries certain responsibilities, one of which is the voluntary payment of taxes,” Enstrom said. “IRS Criminal Investigation will vigorously investigate those individuals who knowingly and willfully evade their tax obligation.”
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney Justin J. Roberts following an investigation by the Internal Revenue Service.
An information is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Camarillo Woman Sentenced to 97 Months for Involvement in Mortgage Fraud SchemeRead the Press Release
LOS ANGELES – Rosa Fernandez, 38, of Camarillo, was sentenced earlier today by United States District Court Judge John A. Kronstadt to 97 months in federal prison for her involvement in a mortgage fraud scheme.
Fernandez was arrested in June 2010 and charged along with nine other individuals in a federal indictment with scheming to defraud banks by falsifying loan applications and using bogus tax letters to vouch for borrowers. Fernandez originated numerous loans and earned substantial commissions. She pleaded guilty in February 2012 to three counts of bank fraud.
While pending sentencing, Fernandez defrauded another lender in connection with seeking a loan modification for one of her several properties and she pleaded guilty to that offense as well. The two cases were consolidated for sentencing.
The District Court found that Fernandez was the leader and organizer of the bank fraud scheme and that she had obstructed justice by committing the loan modification fraud while on pretrial, post-conviction release in the mortgage fraud case. She was also ordered to pay restitution in the amount of $3,646,485.
The case was investigated by the FBI Ventura Resident Agency and the Ventura County District Attorney’s Office, with assistance from the IRS – Criminal Investigation, the U.S. Department of Housing and Urban Development – Office of the Inspector General, the Federal Housing and Finance Administration – Office of the Inspector General, the U.S. Secret Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Release No. 14-073
Boise Man Sentenced for Intent to Distribute Methamphetamine and Unlawfully Possessing A FirearmRead the Press Release
BOISE – Nathen Leon Massie, 35, of Meridian, Idaho, was sentenced today by United States District Court Chief Judge B. Lynn Winmill to 120 months in prison followed by five years of supervised release for Conspiracy to Possess with Intent to Distribute 50 grams or More of Actual Methamphetamine and Possession of Firearms by a Prohibited Person, U.S. Attorney Wendy J. Olson announced. Massie pleaded guilty to the charges on March 5, 2014.
According to the plea agreement Massie admitted that from at least as early as July 1, 2013, through November 7, 2013, he distributed methamphetamine to persons that contained more than 50 grams of actual methamphetamine, and he did so in exchange for money, knowing that those persons, in turn, intended to sell the methamphetamine to others. When the defendant was arrested, officers found over 50 grams of pure methamphetamine at his house along with three firearms and ammunition. According to the plea agreement, one of the firearms found at Massie’s residence was a Barrett, Model 99, .50-caliber rifle. Massie, who had previously been convicted of a felony drug offense, was prohibited from having any of these firearms.
The case was investigated by the Idaho State Police.
Alamogordo Woman Pleads Guilty to Conspiracy to Fraudulently Obtain Prescription DrugsRead the Press Release
ALBUQUERQUE – Connie Coble, 52, of Alamogordo, N.M., pled guilty this afternoon in federal court in Las Cruces, N.M., to participating in a conspiracy to obtain prescription drugs by misrepresentation, fraud, forgery, deception and subterfuge by filling fraudulent prescriptions at retail pharmacies.
Coble and her co-defendant Sharon Carter, 57, also of Alamogordo, were charged in a 66-count indictment filed on March 19, 2014. Count 1 of the indictment charged both women with conspiracy to fraudulently obtain Hydrocodone, a prescription painkiller, by filling fraudulent prescriptions at retail pharmacies in Doña Ana and Otero Counties, N.M., between Aug. 10, 2013 and Sept. 30, 2013. Count 2 charged Carter alone with unlawfully distributing Hydrocodone between Dec. 2011 and Dec. 2013 in Otero County, and Counts 3 through 66 charged Carter alone with fraudulently obtaining Hydrocodone on dates between April 20, 2013 and Dec. 19, 2013.
Today Coble, who was arrested on March 21, 2014, pled guilty to Count 1 of the indictment, the sole charge against her, pursuant to a plea agreement with the U.S. Attorney’s Office. In her plea agreement, Coble admitted that between Aug. 10, 2013 and Sept. 30, 2013, she conspired with Carter to fill fraudulent prescriptions for Hydrocodone at various pharmacies in Doña Ana and Otero Counties. According to the plea agreement, Carter posed as a doctor and called in prescriptions for non-existent persons and Coble went with Carter to the pharmacies to pick up the Hydrocodone after the prescriptions had been filled.
At sentencing, Coble faces a statutory maximum penalty of four years in prison. She remains on conditions of release pending her sentencing hearing, which has yet to be scheduled.
Carter, who was arrested on Dec. 19, 2013, based on a criminal complaint, entered a guilty plea to all 66 counts of the indictment on April 30, 2014, without the benefit of any plea agreement. Carter has been in federal custody since her arrest and remains detained pending her sentencing hearing, which has yet to be scheduled. At sentencing, Carter faces a statutory maximum penalty of ten years in prison.
This case was investigated by the Tactical Diversion Squad of the El Paso Division of the DEA with assistance from the New Mexico Board of Pharmacy, the Lincoln County Sheriff’s Office and the Alamogordo Department of Public Safety, and is being prosecuted by Assistant U.S. Attorney Amanda Gould of the U.S. Attorney’s Las Cruces Branch Office.
DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Activity for May 21, 2014Read the Press Release
Wyoming Man Charged with Assault of a Spouse by Strangling
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced that on May 21, 2014, Jameson Kaulaity, a 28-year-old Northern Arapaho Tribal member, was charged in an indictment with one count of assault of a spouse by strangling in violation of 18 U.S.C. §§ 113(a)(8) and 1153. The charge against Mr. Kaulaity stemmed from an incident that occurred on January 29, 2014 on the Wind River Indian Reservation. Mr. Kaulaity is facing a potential ten (10) year term of imprisonment, and could be ordered to pay restitution, a fine, and special assessment. An indictment is only an accusation. In every criminal case, the accused is presumed to be innocent until proven guilty, and the government always has the burden of proving guilt beyond a reasonable doubt.
34 Individuals Indicted for Drug Trafficking in the Municipality of AguadillaRead the Press Release
SAN JUAN, Puerto Rico – Yesterday, June 11, 2014, a federal grand jury in the District of Puerto Rico returned an indictment against 34 defendants charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. Today, FBI agents and officers of the Puerto Rico Police Department (PRPD), the agencies in charge of the investigation, executed the arrest warrants.
The indictment charges 34 individuals with conspiracy to knowingly and intentionally possess with intent to distribute cocaine base (crack), cocaine, and marihuana, all within 1,000 feet of the real property comprising the La Montaña Housing Project located within the Municipality of Aguadilla, all for significant financial gain and profit.
The indictment alleges that beginning in 2009, the organization established drug distribution points located at different areas in La Montaña. It was further part of the manner and means of the conspiracy that the defendants and their co-conspirators would act in different roles in order to further the goals of the conspiracy, to wit: leaders and drug point owners who directed and supervised runners, enforcers, drug processors, sellers, and facilitators. Leaders directly controlled and supervised the drug trafficking activities at the drug points located within La Montaña. Enforcers possessed, carried, brandished, used and discharged firearms to protect the members of the drug trafficking organization, the narcotics, the proceeds derived from their sales, and to further accomplish the goals of the conspiracy.The runners were responsible for providing sufficient narcotics to the sellers for further distribution at the drug point and collecting the proceeds of drug sales, as well as paying and supervising sellers. Sellers distributed street quantity amounts of crack, cocaine, and marijuana. Facilitators allowed the use of their residences by the drug trafficking organization, and served as messengers and intermediaries for other members of the conspiracy.
Assistant U.S. Attorney Vanessa E. Bonhomme is in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
27 Defendants Facing State or Federal Drug Charges for Allegedly Selling Heroin and Crack Cocaine on City’s West SideRead the Press Release
CHICAGO — Twenty-seven defendants are facing state or federal narcotics charges for their alleged roles in supplying and distributing heroin and crack cocaine in the neighborhood just north of Douglas Park on the city’s west side. An investigation led by officers of the Chicago Police Department and agents of the Drug Enforcement Administration assigned to the Chicago Strike Force, resulted in federal charges against 14 defendants and state charges against 13 others, who police and federal agents began arresting early this morning.
Eight handguns, an AR-15 assault rifle, approximately $140,000, nearly a half-kilogram of heroin, and some cocaine were seized this morning during the arrests. Another half-kilogram of heroin was seized during the course of the investigation from last August through this month. Early today, Chicago police, DEA agents, and other Chicago Strike Force law enforcement partners also executed eight search warrants upon several defendants’ residences and four alleged stash houses.
The federal defendants were charged with conspiracy or possession with intent to distribute narcotics in five separate criminal complaints that were filed yesterday in U.S. District Court and unsealed following the arrests. The federal defendants were scheduled to begin appearing at 3 p.m. today before U.S. Magistrate Judge Daniel Martin in U.S. District Court. The state defendants were charged with delivery of a controlled substance in separate complaints and will appear later in state court.
According to a 169-page affidavit in support of the federal arrests and search warrants, the investigation revealed that KENNETH SHOULDERS, a leader of the Conservative Vice Lords (CVL) street gang, controlled the distribution of narcotics in the area bounded by West Roosevelt Road, West Fillmore Street, and South California and South Kedzie avenues immediately north of Douglas Park. Shoulders, 47, of Chicago, also known as “Kenny Shannon,” allegedly assigned responsibility for narcotics distribution on specific corners within the 12 blocks he controlled to specific individuals, who further delegated distribution to shift workers who sold heroin and crack cocaine throughout the day.
The area is just south of the Interstate 290 Eisenhower Expressway corridor that has been referred to as the “Heroin Highway” because of the accessibility it provides to city and suburban heroin customers.
An admitted member of the “12th Street” faction of the Traveling Vice Lords (TVL) street gang (named for Roosevelt Road’s location at 1200 south on Chicago’s street grid) told investigators in 2013 that Shoulders is a high-ranking member of the Conservative Vice Lords who controlled all of the Vice Lords and drug operations in the area known as “12th Street,” north of Roosevelt Road between the 1100 and 1200 blocks. This cooperating individual told agents that the 12th Street Vice Lords consist primarily of CVL members, but also members of the TVL, Black Souls Nation, Gangster Disciples, and New Breed street gangs. The non-Vice Lord members are mostly “pack workers” or street level drug dealers who have no direct allegiance to the 12th Street Vice Lords other than making money from selling drugs within the 12th Street territory.
“This case mirrors the trending alignment of Chicago’s street gangs into localized drugdealing factions, and the investigation is another example of the extraordinary cooperation among the Chicago Police Department, DEA and other local, state and federal law enforcement agencies,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “While this case focuses on narcotics trafficking and the complaint does not allege these defendants committed any acts of violence, we believe that bringing serious charges such as these is an effective tool in reducing violence in our communities,” he said.
“This operation demonstrates how police and prosecutors are continuing to work together to dig in at the local level and hammer away at the drug markets plaguing our communities,” said Cook County State’s Attorney Anita Alvarez. “We are pleased to be an active participant in the Chicago Strike Force efforts and look forward to continued success.”
Mr. Fardon and Ms. Alvarez announced the charges with Garry F. McCarthy, Superintendent of the Chicago Police Department; Jack Riley, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; and James C. Lee, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division.
“This investigation stemmed from numerous citizen complaints, and those citizens should now be able to enjoy their communities without the threat of these alleged gang and narcotic activities,” said Chicago Police Department First Deputy Superintendent Al Wysinger. “I am extremely proud of the members of our department who led this investigation, and the entire joint law enforcement Strike Force that tracked this alleged criminal organization’s illegal activities and is bringing the offenders to justice to make our community safer,” he said.
“This is exactly the type of case we envisioned when we put together the Chicago Strike Force,” Mr. Riley said. “To go after alleged significant criminal organizations and hold the leaders of those organizations accountable for their actions, with the shared desire that the positive results will be felt in our communities.”
The investigation was conducted through the U.S. Organized Crime Drug Enforcement Task Force (OCDETF) Chicago Strike Force, which ― in addition to the DEA, IRS-CID and CPD ― consists of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and task force officers from various state and local law enforcement agencies, including the Cook County Sheriff’s Police Department and the Illinois State Police.
The complaint affidavit alleges that Shoulders was a wholesale supplier of heroin and worked with his partner, DERRICK WASHINGTON, 44, of Hazel Crest, aka “D-Rock;” his sister, SANDRA SHOULDERS, 49, of Chicago, aka “Penny;” and his son, KENNETH WILLIAMS, 29, of Chicago, aka “Lil’ Kenny,” and other members of the “Shoulders drug trafficking organization.” Another cooperating individual told investigators that Williams managed his father’s heroin distribution at the corner of West Fillmore and South Francisco, and that a state defendant, CHARLES WEATHERSBY, 31, managed Shoulders’ crack cocaine distribution from the same corner.
The Shoulders drug trafficking organization operated its heroin distribution from its main stash house at 211 South Lavergne Ave., as well as specific locations in the 12th Street area, such as 2902 and 2950 West Fillmore St., and 1107 South Mozart St., the charges allege. Other defendants allegedly diluted the heroin to increase profits, shuttled heroin among the various stash and retail locations, advised Shoulders when a new supply was needed, and returned his share of the profits to him. The Shoulders organization’s heroin was typically packaged in small user-portion plastic bags with either a green dollar sign or a black bomb symbol stamped on them.
One federal complaint charges nine defendants ― Shoulders, Washington, Sandra Shoulders, Williams, ANTHONY HAYES, 48, aka “Mustafa;” HARRISON HALL, 50; TIARA WHITE, 27; MARLEANA PORTER, 20; and CRANE MARKS, 50, all of Chicago ― with conspiracy to possess and distribute more than a kilogram of heroin. If convicted, they each face a mandatory minimum sentence of 10 years in prison and a maximum of life imprisonment and a $10 million fine.
RODNEY BEDENFIELD, 40, of Chicago, aka “Bump,” was charged separately with supplying heroin to the Shoulders organization. MARC DAVIS, 45, of Chicago, allegedly supplied heroin to Bedenfield, and was charged with QUEENIE VARGAS, 25, of Chicago, an alleged courier who transported heroin for Davis. If convicted, these three defendants face a mandatory minimum of five years in prison and a maximum of 40 years and a $5 million fine.
DORIAN MILLER, 42, of Riverdale, and JEWNEUS WILSON, 35, of Chicago, were charged separately with being heroin customers of Bedenfield. If convicted, they face a maximum of 20 years in prison and a $1 million fine.
The state defendants, in addition to Weathersby, are: JIM DUNBAR, 19; AMOS HADLEY, 61; DAVID HIGGS, 37; DEONTE HOLLINGWORTH, 26; PARIS HOLMES, 18; JOHN PERRY, 26; NIKKI SANDERS, 21; MILTON TAYLOR, 30; ANTWONE WASHINGTON, 20; NATHANIEL YANCEY, 21; SHARDELL GREEN, 27; and ANTWONE HENRY, 27, all of Chicago.
Assistant United States Attorneys Stephen P. Baker, Shoba Pillay and Katherine A. Sawyer are representing the government in the federal cases. Assistant State’s Attorney Aaron R. Bond is handling the state cases.
The public is reminded that complaints contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Shoulders et al. Complaint
Wednesday 11 June 2014
Yukon Physician Pleads Guilty to Failure to File Tax ReturnRead the Press Release
Oklahoma City, Oklahoma – DWAYNE L. ROUSH, from Yukon, Oklahoma, a physician practicing in Purcell, Oklahoma, pled guilty to failing to file a federal tax return for 2011, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Roush was charged by information on May 22, 2014, with failing to file a federal tax return for 2011. As part of his guilty plea, Roush agreed to pay restitution to the Internal Revenue Service for six tax years, including 2007, 2008, 2009, 2010, 2011, and 2012. In addition, Roush agreed at the plea hearing that the total tax loss to the IRS is between $200,000 and $400,000.
At sentencing, Roush faces up to one year in prison followed by one year of supervised release. He also faces a fine of up to $250,000 and an order to pay mandatory restitution. A sentencing date will be set by the court in approximately 90 days.
This case is the result of an investigation by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Julia E. Barry.
Youngstown Man Sentenced to 90 Years in Prison for Exploiting ChildrenRead the Press Release
A Youngstown man was sentenced to 90 years in prison for exploiting children and distributing visual depictions of minors in sexually explicit conduct, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Christopher Cavna, 27, had children engage in sexually explicit conduct in 2013 and then distributed images of that conduct.
The case was prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the Federal Bureau of Investigation, the Mahoning Valley Violent Crimes Task Force and the Ohio Adult Parole Authority.
Two Long Island Men Charged in Manhattan Federal Court in Connection with Scheme to Defraud Potential Home BuyersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging KEITH ANTHONY, the former President and owner of a company that purported to provide financing for home purchases to people with poor credit, and a former employee of the company, ANTHONY PODIAS, for their alleged participation in a scheme that victimized more than 100 financially struggling people across the country. ANTHONY PODIAS was arrested earlier today and will be presented in Manhattan federal court this afternoon before U.S. Magistrate Judge Gabriel W. Gorenstein. KEITH ANTHONY has not yet been apprehended. The case is assigned to U.S. District Judge Paul A. Engelmayer.
According to the allegations contained in the Indictment unsealed today:
From at least November 2011, up to at least March 2013, the defendants perpetrated a scheme to defraud aspiring home owners who had poor credit and who therefore could not qualify for traditional mortgages. Through a company called CIG REALTY, which was located in Long Island, New York, the defendants promised to help financially struggling individuals purchase homes by providing private financing for the purchase in exchange for small deposits or down payments. The customers were then supposed to repay CIG REALTY until the customers’ credit had improved to the point where they could obtain mortgages from a bank. Despite the defendants’ claims, however, CIG REALTY did not purchase homes for customers and instead diverted most of the customers’ deposits into the personal accounts of KEITH ANTHONY. Through their scheme, CIG REALTY obtained at least approximately $800,000 from more than 100 potential home buyers throughout the United States.
When customers contacted CIG REALTY, they were told that they could either pick a specific house for purchase or have the company help them find one. Once a house was selected, CIG told customers that they needed to send a deposit and then CIG would purchase the house using money obtained from private investors. Once the house was purchased, the customer was to repay CIG at a 10% interest rate until their credit improved and they could obtain financing through a bank. In practice, however, after the customer sent his or her deposit, CIG either did not place a bid or placed a bid that was so low, it would not be accepted. In those instances where CIG’s bid was accepted, CIG would fail to follow through and the deal would fall apart. Customers seeking refunds were typically directed to different people at CIG, who gave different explanations for the delay, before CIG stopped calling them back. Of the more than $800,000 taken in from customers by CIG, only about $44,000 was paid out in refunds.
ANTHONY was the President and owner of CIG REALTY, which closed in late 2012. PODIAS was a supervisor. Both dealt directly with the customers, telling them where to send money, updating them on the progress of negotiations, and explaining why they could not get refunds. ANTHONY also diverted more than approximately $500,000 from CIG’s accounts into his personal accounts and into the accounts of another business that he controlled.
ANTHONY, 46, of Elmont, New York, and PODIAS, 39, of Levittown, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by the judge.
Mr. Bharara praised the FBI for its outstanding work in the investigation. Mr. Bharara also thanked the New York State Department of Financial Services for its assistance.
This matter is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Patrick Egan is charge of the case.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
U.S. v. Keith Anthony and Anthony Podias Indictment
Two Charged with Leading A Conspiracy to Defraud and Extort Spanish-Speaking Consumers Through Fraudulent Call CentersRead the Press Release
A grand jury in Miami, Florida, indicted two individuals and two corporations for allegedly operating call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements.
U.S. Attorney Wilfredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division and U.S. Postal Inspector in Charge Ronald Verrochio of the Miami Office made the announcement.
Maria Luzula, of Miami, and Juan Alejandro Rodriguez Cuya, of Lima, Peru, were charged with conspiracy, mail and wire fraud and extortion. Two Miami-based corporate entities – Angeluz Florida Corporation and Angeluz Miami, LLC – were charged with the same offenses.
“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Ferrer. “In this case, the defendants are alleged to have targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division, Consumer Protection Branch, to protect our consumers from fraud.”
“The Department of Justice is committed to fighting consumer fraud,” said Assistant Attorney General Delery. “Threats, misrepresentations and other predatory tactics used to rip off consumers will not be tolerated.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten our citizens and defraud them of their hard earned money, no matter what country they are operating from,” said U.S. Postal Inspector in Charge Verrochio.
According to allegations in the indictment, the defendants’ employees in Peru, using Internet-based telephone calls, lied to Spanish-speaking victims in the U.S. about fines they owed and lawsuits that would be brought against the victims. Peruvian callers threatened the victims and falsely told each victim that he or she had wrongfully failed to receive a delivery of products. The callers went on to claim, again falsely, that the victims owed thousands of dollars in fines. In reality, the victims had never ordered these products and no attempts to deliver products to the victims had been made.
The indictment alleges that Luzula’s and Rodriguez Cuya’s employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation, forfeiture of property or harm to their credit scores. Although consumers typically objected that they did not order or refuse delivery of any products, thousands still agreed to pay the fees due to these threats. The indictment alleges that a phone room in Miami collected the fees.
Luzula and Rodriguez Cuya originally were charged by criminal complaint and arrested on Jan. 10, 2013. They have remained incarcerated since their arrests.
The charges in the indictment are only allegations, and the defendants are presumed innocent unless and until proven guilty.
Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case is being prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch.
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.
Two Brothers Charged with Preparing and Filing False Tax ReturnsRead the Press Release
ATLANTA - Frederick Jenkins and Willie Jenkins have been arraigned on federal charges that they conspired to prepare and file false federal tax returns that claimed over $1 million in tax refunds.
“Citizens trust that tax preparers will accurately prepare their returns,” said United States Attorney Sally Quillian Yates. “Citizens also expect preparers to maintain the integrity of the tax system. Tax preparers who abuse the system for their own financial gain will be investigated by the Internal Revenue Service and, where appropriate, criminally prosecuted.”
“IRS special agents work year round to investigate and root out dishonest return preparers and protecting taxpayer money is a matter IRS takes extremely serious,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “It is also important to note that even if someone else prepares someone’s return, the taxpayer is ultimately responsible for all the information on the tax return. Therefore, choose your tax preparer carefully.”
According to United States Attorney Yates, the charges, and other information presented in court: Since 2006, brothers Frederick and Willie Jenkins owned and operated Global Tax Service LLC (GTS), a tax preparation business with multiple locations throughout the Atlanta, Ga., area and in other states, including Alabama. During the tax years under investigation, 2008 through 2011, the Jenkins brothers allegedly prepared and filed false income tax returns for clients. The false items primarily consisted of fraudulent and fictitious business income and losses in order to inflate tax refunds.
Frederick Jenkins, 42, of Atlanta, Ga., and Willie Jenkins, 44, of Fairburn, Ga., were arraigned today before United States Magistrate Judge Linda T. Walker. The Defendants were indicted by a federal grand jury on May 20, 2014.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Internal Revenue Service Criminal Investigation, and the Georgia Department of Revenue.
Assistant United States Attorneys Bernita B. Malloy and Nekia S. Hackworth are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.St. Thomas Man Convicted of Hobbs Act Robbery and Firearm OffensesRead the Press Release
St. Thomas, USVI – After a three-day trial in District Court on St. Thomas, a federal jury on Wednesday convicted Richard Antonio Hodge, Jr., 29, of St. Thomas for his role in the armed robbery and shooting of a Ranger American Armored Service messenger and his supervisor on December 3, 2013 in the Lockhart Gardens Shopping Center, announced United States Attorney Ronald W. Sharpe. Hodge, who has been in custody since his arrest, was remanded to the custody of the U.S. Marshals Service pending sentencing, which the court scheduled for October 10, 2014. Hodge faces up to 80 years in prison when he is sentenced.
“Individuals who commit these types of violent gun crimes in our community pose a danger to all of us and to our way of life,” U.S. Attorney Sharpe said. “The U.S. Attorney’s Office, together with our federal and local law enforcement partners, is committed to fully investigating, prosecuting and seeking lengthy prison sentences for those who engage in this type of violent and brazen criminal conduct.”
After deliberating for nearly a day, the jury convicted Hodge of the following offenses:
- interfering with commerce by robbery (federal Hobbs Act robbery);
- discharge of a firearm during the commission of a crime of violence (federal offense);
- unauthorized possession of a firearm during the commission of a crime of violence (territorial offense);
- assault with intent to commit murder, robbery (territorial offense), and;
- reckless endangerment (territorial offense).
The jury acquitted Hodge of one count of discharge of a firearm during the commission of an attempted murder, two counts of attempted murder (territorial offense) and use of a firearm during the commission of an attempted murder (territorial offense).
According to the evidence presented at trial, on December 3, 2013, a messenger for Ranger American Armored Service went to Kmart at Lockhart Gardens Shopping Center to deliver and retrieve U.S. currency for deposit at a bank. The messenger entered Kmart, delivered coins and picked up $33,550 from Kmart to take to the bank. While in Kmart, the messenger also picked up $4,700 from the AT&T kiosk in the store. After exiting Kmart, the messenger stopped to talk to his supervisor, who was standing a short distance from the entrance to Kmart. While the messenger was speaking with his supervisor, Hodge ran up to the messenger, shot him in the back, hip and wrist, and ripped the money bag from his hands. Hodge then ran through the parking lot and into the Oswald Harris Court public housing community where he was chased by an off-duty Virgin Islands police officer and the messenger’s supervisor. Hodge was apprehended approximately 45 minutes later hiding in dense brush behind Oswald Harris Court. The messenger and supervisor were taken to the Roy Lester Schneider Hospital where both were treated for multiple gunshot wounds. Both men are expected to make a full recovery. The stolen money and firearm used in the crimes were never recovered.
Hodge faces a maximum penalty of 20 years in prison on the federal Hobbs Act robbery, a mandatory consecutive 10 years on the federal firearms offense, a minimum penalty of 15 years and up to 20 years in prison on the territorial firearms offense, a maximum of 15 years in prison on the territorial first-degree assault conviction, a maximum of 20 years in prison on the territorial robbery conviction, and a maximum of 10 years on the reckless endangerment conviction. Hodge also faces a maximum fine of $250,000 on each of the federal offenses, $25,000 on the territorial offenses, and a special assessment of $300.
U.S. Attorney Sharpe commended the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Virgin Islands Police Department and the Federal Bureau of Investigations for their outstanding work in this case. He also commended Assistant U.S. Attorney Nelson L. Jones, who prosecuted the case.
Shooting at House Lands Convicted Felon Gang Member in Federal Prison for 57 MonthsRead the Press Release
Oklahoma City, Oklahoma – DAVID ASHARD SAMILTON, 20, from Oklahoma City, was sentenced today to serve 57 months in federal prison for being a convicted felon illegally in possession of a firearm, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, on September 15, 2013, the Oklahoma City Police Department responded to a report of a street fight at 1708 NE 11th in Oklahoma City. Samilton and others were interviewed by the responding officers with no arrests at that time. Less than an hour later, OCPD responded to another call that shots were fired at the same residence. Officers discovered bullet holes in the siding, bullet strikes in the brick, one bullet hole in the front window of the residence, and six .45 caliber shell casings in the street. Witnesses at the scene described the shooter as wearing the same clothing matching the description of what Samilton was wearing during the prior interview. Officers then discovered Samilton hiding in a vacant house nearby with a Taurus PT145, .45 caliber pistol. The OCPD’s Metropolitan Violent Crime Gang Task Force has documented Samilton as a member of a local street gang. Samilton had prior felony convictions in Oklahoma County for possession of cocaine base, auto theft, and possession of marijuana with intent to distribute. Under federal law, Samilton was prohibited from possessing this firearm as a convicted felon.
Samilton was indicted on October 1, 2013, and pled guilty today. In addition to being ordered to serve a 57-month prison sentence, Samilton was ordered to serve three years of supervision upon his release from prison. Samilton also faces an additional charge in Oklahoma County District Court for discharging a firearm into a dwelling. (Oklahoma County District Court case CF-2013-6383).
This case is the result of an investigation by the U.S. Department of Homeland Security Investigations and the Oklahoma City Police Department. The case was prosecuted by Assistant U.S. Attorney Ashley L. Altshuler.
Shawn Augare Sentenced to Prison for Bank FraudRead the Press Release
The United States Attorney's Office announced that SHAWN JOSEPH AUGARE, 38, of Browning, Montana, was sentenced to a term of 9 months imprisonment, three years supervised release, a special assessment of $100, and restitution of $6,460.14 during a federal court hearing in Great Falls, Montana, on May 23, 2014, before U.S. District Judge Brian M. Morris.
AUGARE was sentenced in connection with his February 11, 2013, guilty plea to bank fraud. In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated it would have proved that AUGARE cashed and deposited forged checks from the Child and Family Advocacy Center account that were drawn from Wells Fargo Bank and Stockman Bank. The Child and Family Advocacy Center (CFAC) account was an account controlled by AUGARE's father, Delyle Shanny Augare and Francis Onstad, the Directors of the Po'Ka Project. Prosecutors alleged that over $230,000 was embezzled from the Po'Ka grant and laundered through the CFAC account between August 2008 and September 2011 with the assistance of Dr. Gary Conti, who was convicted in May 2014 of 26 counts related to corruption and theft from the Po'Ka program.
AUGARE attempted to take $10,300 during the commission of the bank fraud. When interviewed by the Federal Bureau of Investigation, AUGARE admitted that he stole the money.
At sentencing, the government stated, "Augare is old enough to know better. . . [H]e has been unable to control his propensity to steal and defraud others. It is now up to the Court to ensure that Augare is properly punished and that he is deterred from continually engaging in fraudulent activity."
The District Court sentenced AUGARE to a guideline sentence of 9 months imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that AUGARE will serve all of the time imposed by the court.
This case was investigated by the Federal Bureau of Investigation.
Rio Arriba County Man Sentenced to Prison for Robbing Espanola Bank in September 2013Read the Press Release
ALBUQUERQUE – Stephen R. Gurule, 35, of Hernandez, N.M., was sentenced this afternoon to 41 months in federal prison followed by three years of supervised release for his bank robbery conviction. Gurule also was ordered to pay full restitution to the bank that was the victim of his crime.
Gurule was arrested on Oct. 3, 2013, on a criminal complaint charging him with robbing the Community Bank, located at 411 Carr Lane in Espanola, N.M., on Sept. 27, 2013. He subsequently was indicted on that same charge on Oct. 30, 2013.
According to court filings, the bank was robbed on the afternoon of Sept. 27, 2013, by a man who slid a note, written on the back of a check, to the teller. The note demanded money and made referenced to a “bomb.” After the teller complied with the demand, the bank robber fled from the bank with the cash. Before leaving the bank, the bank robber placed the bag he was carrying on the floor inside the bank. Several days later, Gurule turned himself into law enforcement and admitted committing the bank robbery.
Gurule entered a guilty plea to the indictment on Jan. 3, 2014.
This case was investigated by the Santa Fe office of the FBI and the Espanola Police Department and was prosecuted by Assistant U.S. Attorney David M. Walsh.Poplar Man Gets 20 Years for Rape, Assault and BurglaryRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, KEVIN J. DEVEREAUX, 50, of Poplar, was sentenced to a term of 20 years imprisonment and five years supervised release for the rape of a woman on the Fort Peck Indian reservation. Devereaux was sentenced for aggravated sexual assault after two earlier attempts to convict Devereaux for other sex crimes against other victims ended in acquittal or mistrial.
Following a three-day trial in Great Falls, a jury convicted Devereaux of raping a woman on the Fort Peck Reservation, burglarizing her home, and severely assaulting her in front of her 7-year-old granddaughter. The rape occurred in 2009, when Devereaux appeared in the victim's house as she was asleep on the sofa with her two grandchildren, ages two and eight months. Devereaux dragged her to the bedroom, where he raped her. He then fled the house. Days after the offense occurred, Devereaux intimidated the victim into recanting her story. In 2013, Devereaux broke into her bedroom where she was sleeping with her seven-year-old granddaughter and beat her in the head multiple times. When the child pleaded with him to stop, Devereaux screamed at her "I'm going to kill your grandma!" The victim was able to escape and call 911. During the investigation of the second offense, the Federal Bureau of Investigation interviewed the victim, at which point she disclosed Devereaux had intimidated her into changing her story regarding the rape. Due to advancements in the law, the United States was still able to prosecute the rape offense years later, when the truth came out about the circumstances surrounding the victim's statements about the rape.
Devereaux was referred to as a "serial predator" by prosecutors. Deveraux was indicted by the federal grand jury in 2012 on two counts aggravated sexual abuse and one count of abusive sexual conduct. A jury acquitted Devereaux of those charges. Devereaux was again indicted by the federal grand jury for aggravated sexual abuse of another woman, the burglary of her home, and assault with a dangerous weapon. In January 2013, a trial jury acquitted Devereaux of burglary and assault with a dangerous weapon, and could not reach a unanimous verdict on the sexual assault charge. The court declared a mistrial on that charge. Prosecutors have indicated their intention to re-try Devereaux for the sexual assault of the second victim and Devereaux has appealed, claiming double jeopardy.
The Court sentenced Devereaux to 20 years of imprisonment, with five years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Devereaux will likely serve all of the time imposed by the court. In the federal system, Devereaux does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Philadelphia Day Care Owner Charged with Defrauding Public WelfareRead the Press Release
PHILADELPHIA –Tianna Edwards, 32, of Philadelphia, Pennsylvania, was charged today by information with wire fraud, in connection with a scheme to defraud the Pennsylvania Department of Public Welfare, announced United States Attorney Zane David Memeger.
According to the information, in 2008, Edwards had a criminal record which would have prohibited her from obtaining a license to operate a child day care facility and receive state and federal child subsidy payments from the Department of Public Welfare (“DPW”). In order to circumvent the criminal history clearance requirements for a license and to become eligible for state and federal child care subsidy funds, in September 2008, defendant Tianna Edwards submitted the first of two separate applications to DPW containing the forged signatures of another individual, for licenses to operate facilities named “Tianna’s Terrific Tots.” Both applications were false because they listed a person who did not have a criminal record as the sole legal owner and operator of “Tianna’s Terrific Tots” when, in fact, defendant Tianna Edwards controlled and operated “Tianna’s Terrific Tots.” The facilities were located on Germantown Avenue and Rising Sun Avenue in Philadelphia. The information alleges that, from December, 2008 through July 2012, Tianna Edwards received from DPW approximately $1,459,470.25 in fraudulent payments to Tianna’s Terrific Tots. According to the information, Edwards spent the money on lifestyle expenses and gambling, as well as business expenses.
If convicted, Tianna Edwards faces a maximum possible sentence of 100 years in prison, 3 years of supervised release, a $1,250,000 fine and a $500 special assessment.
The case was investigated by the United States Department of Health and Human Services and is being prosecuted by Assistant United States Attorney Joan E. Burnes.
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, 215-861-8525Owner of Construction Company Admits Filing False Tax Returns and Underreporting More Than $1 Million in IncomeRead the Press Release
NEWARK, N.J. - The owner and operator of Larino Masonry Inc., a construction company based in northern New Jersey, today admitted underreporting more than $1 million diverted from his business for his personal benefit, U.S. Attorney Paul J. Fishman announced.
Juan Larino, 53, of West New York, N.J., pleaded guilty before U.S. District Judge Katherine S. Hayden in Newark federal court to an information charging him with one count of filing a false federal personal income tax return.
According to documents filed in this case and statements made in court:
During his operation of the business, Larino received checks made payable to Larino Masonry Inc. Larino admitted that instead of depositing all of the payments into bank accounts held by the business, he cashed some of the checks for his own personal benefit.
For the tax years 2010 through 2011, Larino filed individual income tax returns in which he claimed to report all of his income from the construction business. However, Larino failed to report approximately $1.1 million in cash that he kept from checks made payable to Larino Masonry Inc. Larino’s failure to truthfully disclose income he received as owner of the company resulted in a tax loss to the United States of $200,000 to $400,000.
As part of his guilty plea, Larino agreed to make full restitution for all losses resulting from his false tax returns. He also agreed to forfeit $575,000 in a related civil case with the U.S. Attorney's Office.
The subscribing to false tax returns charge carries a maximum potential penalty of three years in prison and a $100,000 fine. Sentencing is scheduled for Sept. 29, 2014.
U.S. Attorney Fishman credited special agents of the IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Evan S. Weitz of the U.S. Attorney's Office Asset Forfeiture and Money Laundering Unit.
14-214
Defense counsel: Vincent Martinelli Esq., Staten Island, N.Y.
Larino, Juan Information
Orlando Credit Union Robber Pleads GuiltyRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Raulier Rivas Lopez (28, Orlando) has pleaded guilty to one count of credit union robbery with assault, and one count of possession of a firearm in furtherance of the robbery. Lopez faces a maximum penalty of 25 years in prison on the robbery charge, and a consecutive mandatory minimum term of 7 years, up to life imprisonment for the firearm charge.
According to court documents, on the morning of January 25, 2012, Lopez, and three others robbed the American Eagle Credit Union located at 7007 SeaWorld Drive, in Orlando. Lopez and two of his co-conspirators, all wearing masks, entered the credit union and demanded money from the credit union employees. Lopez pointed a firearm at the credit union employees, as his co-conspirators pepper-sprayed them so that they would not be able to identify the robbers. Lopez and his co-conspirators stole approximately $7,000 during the robbery.
To date, one other individual, Joseph Cotto-Diaz, has been arrested for his role in this case. Cotto-Diaz was charged in a superseding indictment on March 19, 2014. He is scheduled for trial in July 2014.
This case was investigated by the Federal Bureau of Investigation and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
Orlando Area Men Convicted of Wire Fraud Conspiracy Involving the Travel IndustryRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that a federal jury has found Albert Jeffrey Sanchez (50, Orlando) and Harold Ferdinand (36, Longwood) guilty of conspiracy to commit wire fraud. Each faces a maximum penalty of 20 years in federal prison. Sanchez and Ferdinand were indicted on February 19, 2014. The verdict was returned yesterday. The sentencing hearing is scheduled for September 17, 2014.
According to testimony and evidence presented at trial, during the course of the conspiracy, Sanchez owned and operated AVYT Tours, an Orlando-area travel agency. Ferdinand worked as a rental agent at Budget Rent-A-Car in Orlando. Between January 2008 and March 2009, Ferdinand used his position with Budget to modify almost 1,000 customer reservations and agreements from Avis Budget branches around the country. Ferdinand modified customer reservations to make it appear as though Sanchez’s travel agency AVYT Tours had booked the reservations, when he knew that the customers had booked the reservations themselves, usually over the Internet.
For reservations booked by AVYT Tours, Avis Budget wired Sanchez’s travel agency a commission. The commissions for the customer reservations that Ferdinand and co-conspirator and fellow Avis Budget employee Lillian Sanchez had fraudulently modified totaled nearly $140,000. Sanchez then wrote Ferdinand approximately $17,000 in checks for his participation in the scheme.
Lillian Sanchez (50, Debary) pleaded guilty to her role in the scheme on May 20, 2014. Her sentencing hearing is scheduled for August 20, 2014.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Joseph M. Schuster.
Ohio Man Sentenced for Role in Heroin ConspiracyRead the Press Release
Charleston, W.Va. – Christopher Swann, 24, of Port William, Ohio, was sentenced today to six months’ imprisonment and six months’ home confinement for his involvement in a heroin conspiracy where he purchased heroin in Ohio for distribution in West Virginia. Swann pled guilty in March of 2014 and admitted that he made three trips to Ohio to purchase heroin for resale in West Virginia. Swann was sentenced by United States District Judge John T. Copenhaver who made it a specific requirement of Swann’s sentence that he work at least 40 hours per week after he completes his period of incarceration.
This case was prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and opiates. The United States Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal heroin and pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District .
Ohio Man Convicted on Heroin Distribution ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorWHEELING, WEST VIRGINIA – An Ohio man has been convicted on charges of distributing heroin in Hancock County, according to United States Attorney William J. Ihlenfeld, II.
Marcel D. WEAVER, age 29, of East Liverpool, Ohio, entered a plea of guilty before Magistrate Judge James E. Seibert to the distribution heroin within 1,000 feet of Allison Elementary School in Chester, West Virginia. WEAVER was part of a conspiracy to distribute heroin and other drugs in Hancock County and elsewhere between August and December of 2013.
WEAVER, who is in custody pending sentencing, faces up to forty years in prison, a $2 million dollar fine and six years of supervised release.
The case was prosecuted by Assistant U.S. Attorney Stephen L. Vogrin and investigated by the Hancock Brooke-Weirton Drug and Violent Crimes Task Force, an Appalachia HIDTA-funded unit. The case began with a tip provided by the Youngstown, Ohio, office of the Drug Enforcement Administration (DEA).Nineteen Individuals Indicted in June Federal Grand JuryRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office announced today the results of the June 2014 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. Statutory maximum punishments are in parentheses. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
ELADIO ARGUELLES, age 26, of El Paso, TX
Possession with Intent to Distribute 5 Kilograms or More of Cocaine
The Indictment alleges that on or about April 5, 2014, in the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with the intent to distribute five (5) kilograms or more of a mixture or substance containing a detectable amount of Cocaine, a Schedule II Controlled Substance.
The charge arose from an investigation by the Savanna Police Department and the Drug Enforcement Administration. The charge is, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment and/or up to a $10,000,000.00 fine.
Assistant United States Attorney Chris Wilson
MICHAEL ALLEN COOPER, age 39, of Moore, OK
AMANDA JO JONES, age 24, of Westville, OK
Drug Conspiracy
Possession with Intent to Distribute Methamphetamine
Drug ForfeitureThe Indictment alleges that from in or about June 2013, until on or about April 9, 2014, within the Eastern District of Oklahoma, the defendants did willfully and knowingly combine, conspire, confederate and agree together, and with others known and unknown to the Grand Jury, to knowingly and intentionally possess with intent to distribute and distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.
The charges arose from an investigation by the District 16 District Attorney’s Drug Task Force, the Drug Enforcement Administration, and the U.S. Postal Service – Office of Inspector General. The charges are in violation of Title 21, United States Code, Section 846, punishable by not less than 20 years imprisonment and/or up to a $20,000,000.00 fine.
Assistant United States Attorney Douglas A. Horn
RICKY ELLIS LAMB, age 56, of Van Buren, AR
Possession and Uttering a Counterfeit Security
The Indictment alleges that on or about June 20, 2012 in the Eastern District of Oklahoma, the defendant knowingly possessed, uttered and caused to be uttered counterfeit securities, to wit: counterfeit check #6410 on a closed account, made payable to Staples in the amount of $665.58, and drawn on Weokie Credit Union, an organization which operates in interstate commerce. The Indictment further alleges that on or about July 18, 2012 in the Eastern District of Oklahoma, the defendant, knowingly possessed, uttered and caused to be uttered counterfeit securities, to wit: counterfeit check #8561 on the account of Compass Assembly of God, Inc., made payable to Staples in the amount of $844.16, and drawn on Citizens Security Bank, an organization which operates in interstate commerce.
The charges arose from an investigation by the District 18 District Attorney’s Drug Task Force and the Drug Enforcement Administration. The charges are in violation of Title 18, United States Code, Sections 513(a), punishable by up to 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney Melody Noble Nelson
NIKEA PAUL LEE, age 38, of Ardmore, OK
Possession with Intent to Distribute Methamphetamine
The Indictment alleges that on or about February 6, 2014, within the Eastern District of Oklahoma, the defendant, did knowingly and intentionally possess with the intent to distribute over five (5) grams or more of actual Methamphetamine, a Schedule II Controlled Substance.
The charge arose from an investigation by the Chickasaw Lighthorse Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The charges are in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B), punishable by not less than 5 years and not more than 40 years imprisonment and/or up to a $5,000,000.00 fine.
Assistant United States Attorney Kyle E. Waters
TOMMY LOUIS TAYLOR, age 35, of Muskogee, OK
Felon in Possession of a Firearm
The Indictment alleges that on or about December 19, 2013, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, the following firearm, to-wit: one H&R .32 caliber revolver, bearing serial number BA021273, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Muskogee Police Department and the Federal Bureau of Investigation. The charges are in violation of Title 18, United States Code, Section 922(g)(1), punishable by not more than 10 years imprisonment and/or up to a $250,000.00 fine.
Assistant United States Attorney D. Edward Snow
DEJA MONET PHILLIPS, age 18, of Houlka, MS
BRANDON JEVAR PITTMAN, age 32, of Calhoun City, MS
Possession with Intent to Distribute Methamphetamine
The Indictment alleges that on or about March 6, 2014, within the Eastern District of Oklahoma, the defendants, did knowingly possess with the intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the Oklahoma Highway Patrol and the Federal Bureau of Investigation. The charges are in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B) and Title 18, United States Code, Section 2, punishable by not less than 5 years and not more than 40 years imprisonment and up to a $5,000,000.00 fine.
Assistant United States Attorney Kyle E. Waters
JACKIE DALE BRUMLEY, age 44, of Noble, OK
STEVEN D. CARR, age 43, of Walnut Shade, MO
MARGARET CASEY, age 45, of Checotah, OK
SCOTT WESLEY DUNCAN, age 38, of Oklahoma City, OK
CORNELL TYLEIZ HARVEY, age 29, of Oklahoma City, OK
SUNNY ANN MARTINEK, age 38, of Norman, OK
MICHAEL A. METZKER, age 36, of Checotah, OK
MICHAEL W. METZKER, age 58, of Checotah, OK
DEREK PARK, age 31, of Checotah, OK
LACEY RENEE PARK, age 30, of Checotah, OK
SHAWNA VANZANT, age 33, of Henryetta, OK
Drug Conspiracy
The Indictment alleges that from in or about April 2003 to on or about April 15, 2014, within the Eastern District of Oklahoma and elsewhere, the defendants, knowingly conspired to possess with the intent to distribute and to distribute 500 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The charges arose from an investigation by the McIntosh County Sheriff’s Office and the Drug Enforcement Administration. The charges are in violation of Title 21, United States Code, Sections 846, 8411(a)(1) and 841(b)(1)(A) and Title 18, United States Code, Section 2, punishable by not less than 10 years and up to a $10,000,000.00 fine.
Assistant United States Attorney Shannon L. Henson
Newcastle WA Man Sentenced to 63 Months, $146,000 Restitution for Card Skimming and Wire FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ELVIN ALISURETOVE, age 36, of Newcastle, Washington, was sentenced to 63 months imprisonment, followed by 3 years of supervised release for Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 1349. The defendant was also ordered to pay $146,014.38 in restitution.
The Indictment alleged that beginning in or about April 2012 and continuing until in or about January 2013, within the Eastern District of Oklahoma and elsewhere, the defendant and others known and unknown to the Grand Jury would obtain account information and personal identification numbers (“PIN’s”) by using a skimming device.
The charges further allege that on or about the period of December 3, 2012 to December 4, 2012, in the Eastern District of Oklahoma, the defendant did knowingly possess, and use, without lawful authority, a means of identification of another person during and in relation to Conspiracy to Commit Wire Fraud.
The charges are a result from an investigation by the Durant Police Department, the Muskogee Police Department and the United States Secret Service.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
First Assistant United States Attorney Doug Horn represented the United States.
New Jersey Chiropractor Admits Obstructing Health Care Fraud InvestigationRead the Press Release
NEWARK, N.J. - A Sussex County, N.J., chiropractor today admitted destroying patient appointment records sought by federal agents investigating potential billing fraud at her medical office, U.S. Attorney Paul J. Fishman announced.
Mary Jean Negri, 57, of Lafayette, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging her with one count of obstructing an investigation of a health care offense.
According to documents filed in this case and statements made in court:
For the past 24 years, Negri, a licensed chiropractor and registered nurse in New Jersey, has owned Lafayette Hilltop Chiropractic Center (Lafayette Hilltop). In May 2012 she discovered the FBI and the U.S. Attorney’s Office were investigating Lafayette Hilltop for potentially fraudulent billing practices. Negri suspected that investigators were interested in obtaining Lafayette Hilltop’s patient appointment books as evidence of potential fraud. In an effort to obstruct the government’s investigation, she discarded those patient appointment books.
The obstruction charge carries a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Sept. 29, 2014.U.S Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, as well as criminal investigators with the U.S. Attorney’s Office, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office’s Economic Crimes Unit.
14-212
Defense counsel: John M. Vazquez Esq., Roseland, N.J.
Negri, Mary Jean Information
Nevada Man Sentenced to 9 Years in Prison in Synthetic Drug CaseRead the Press Release
RENO, Nev. – A northern Nevada man was sentenced this week to nine years in prison for distributing synthetic cannabinoids out of his convenience store business in Reno, and for storing large quantities of the substance for distribution in his home in Reno, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Iqbal Singh-Sidhu, 34, was sentenced on Monday, June 9, 2014, by U.S. District Judge Robert C. Jones. Singh-Sidhu was convicted by a federal jury in February 2014 of 16 counts of possession with the intent to distribute and distribution of controlled substances and controlled substance analogues intended for human consumption, and one count of maintaining a drug-involved premise. It was the first federal jury trial of its kind in Nevada involving synthetic cannabinoids, commonly referred to as “spice.”
“Synthetic drugs such as “spice” and “fake weed” are oftentimes more potent and dangerous than real marijuana and are being sold to an unwary public in convenience stores, head shops, gas stations and online,” said U.S. Attorney Bogden. “These synthetics are powerful substances that are typically sprayed indiscriminately on a base product to create ‘spice,’ and when consumed have caused hallucinations and dangerous levels of overdose. We are working diligently with our local, state and federal law enforcement partners to prosecute persons who callously and recklessly distribute them.”
According to the court records and evidence introduced at trial, on four separate occasions in September 2012, Singh-Sidhu knowingly and unlawfully distributed controlled substances, and analogues intended for human consumption, in violation of the Controlled Substances Act and the Controlled Substance Analogue Enforcement Act. The synthetic substances that he distributed over the course of these four occasions were labeled “Diablo,” “Hayze,” “White Rhino,” and “Smokin Dragon.”
On Feb. 5, 2013, agents executed federal search warrants at 1801 West 4th Street, in Reno, and at Singh-Sidhu’s residence at 3101 Platte River Drive, in Reno, and recovered hundreds of packages of various types of “spice” in ready to distribute packaging. The overall street value of the “spice” found at his business and home was approximately $20,000.
The synthetic drugs Singh-Sidhu sold, and later possessed with intent to distribute at his business and his home in February 2013, contained one or more of the controlled substances, JWH-018, JWH-073, JWH-081, and AM2201, and/or one or more of the analogues intended for human consumption, UR-144, XLR11, and 5-MeO-DALT. Synthetic drugs containing these substances have hallucinogenic effects on the central nervous system. The physiological effects these substances cause are stronger and more potent than those caused by marijuana.
Singh-Sidhu also unlawfully maintained the business of Grab n Go Food n Liquors for the purpose of distributing “spice” containing these controlled substances, and analogues intended for human consumption.
According to the Office of National Drug Control Policy, synthetic drugs are a rapidly emerging threat and there is an increasingly expanding array of synthetic drugs available. Use of synthetic drugs is alarmingly high, especially among young people. The contents and effects of synthetic drugs are unpredictable due to a constantly changing variety of chemicals used in manufacturing processes devoid of quality controls and government regulatory oversight. Health warnings have been issued by numerous public health authorities and poison control centers describing the adverse health effects associated with the use of synthetic drugs. The Administration has been working with federal, congressional, state, local, and non-governmental partners to put policies and legislation in place to combat this threat, and to educate people about the tremendous health risk posed by these substances. For more information on the risks and dangers of synthetic drugs, go to http://www.whitehouse.gov/ondcp/ondcp-fact-sheets/synthetic-drugs-k2-spice-bath-salts.
The case was prosecuted by Assistant U.S. Attorneys James E. Keller and Carla Higginbotham and investigated by the Drug Enforcement Administration (DEA), including its Office of Diversion Control, Drug and Chemical Evaluation Section, in Arlington, VirginiaNavajo Man from Thoreau Sentenced to Thirty-Five Months in Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Eddie Jones, Jr., III, 23, was sentenced this afternoon to 35 months in federal prison followed by three years of supervised release for his assault conviction. Together with his brother and co-defendant, Aldo Jones, 31, Eddie Jones also was ordered to pay $47,574.91 to the Indian Health Services to cover the costs of medical care for the victim of his criminal conduct.
Eddie Jones and Aldo Jones, both enrolled members of the Navajo Nation who reside in Thoreau, N.M., were arrested in Aug. 2013, on a criminal complaint charging them with assault charges arising out of an attack on a 21-year-old Navajo man in Crownpoint, N.M., on July 28, 2013. According to court filings, Aldo Jones and Eddie Jones assaulted the victim for failing to pay a $50 debt. Aldo Jones repeatedly stabbed the victim in the head, upper back and right hand with a screwdriver, and both he and Eddie Jones pummeled the victim with their fists. The victim sustained a life-threatening injury to his head where his skull was punctured. He also sustained stab wounds to his upper back and right hand and a broken nose.
Aldo Jones and Eddie Jones subsequently were charged in a four-count indictment with assault resulting in serious bodily injury and assault with a dangerous weapon arising from the assault on the 21-year-old victim. Aldo Jones also was charged with two assault charges arising out of an attack on a second victim on July 28, 2013, in Littlewater, N.M.
On Dec. 5, 2013, Eddie Jones entered a guilty plea to assaulting the first victim. In his plea agreement, Eddie Jones admitted beating the victim who also was stabbed by Aldo Jones.
The day before (Dec. 4, 2013), Aldo Jones pled guilty to two assault charges and admitted assaulting two victims on July 28, 2013. He admitted assaulting the first victim at approximately 5:00 p.m. by stabbing him with a screwdriver. Aldo Jones also admitted stabbing the second victim with a knife approximately two hours later when the second victim confronted him about stabbing his cousin, the first victim. Aldo Jones was sentenced on May 8, 2014, to 70 months in federal prison followed by three years of supervised release.
The case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Mother, Son Convicted in Connection with W.Va. Pain ClinicRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorCLARKSBURG, WEST VIRGINIA – A mother and son were convicted today in connection with the case of a West Virginia physician who is alleged to have prescribed painkillers for non-legitimate medical purposes, according to United States Attorney William J. Ihlenfeld, II.
Lois Ann CRITES, age 50, of Fairmont, West Virginia, who acted as office manager for Dr. Edita Milan, entered a plea of guilty to conspiracy to possess with intent to distribute and to distribute Schedule II and Schedule III controlled substances. CRITES admitted to phoning in prescriptions to pharmacies for numerous individuals to obtain Schedule II and Schedule III controlled substances without a valid medical reason. CRITES also admitted that she assisted Dr. Milan in falsifying the medical records of patients to attempt to justify the medical need for controlled substance prescriptions. CRITES became the office manager for Dr. Milan after CRITES’ sister, the former office manager, was sentenced to prison for drug activities connected to the same doctor’s office.
CRITES, who is free on bond pending sentencing, faces up to 20 years in prison.
Daniel J. QUIRK a/k/a “DJ,” age 30, of Fairmont, and the son of Lois CRITES, entered a plea of guilty to distribution of oxycodone. QUIRK admitted today to selling oxycodone pills in the parking lot of a Fairmont gas station in 2012. QUIRK also admitted that he had been regularly selling pills that he had received through Dr. Milan's office. QUIRK, who is free on bond pending sentencing, faces up to 10 years in prison.
Dr. Milan is presently under indictment and her trial is scheduled for later this year.
The case was prosecuted by Assistant United States Attorney John C. Parr and investigated by the Greater Harrison County Drug and Violent Crimes Task Force, which is comprised of officers and agents from the Bridgeport Police Department, the Clarksburg Police Department, the Drug Enforcement Administration, and the West Virginia State Police, along with support from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
The guilty pleas were taken by U.S. Magistrate Judge John S. Kaull.
More Charges Filed in Case Involving Drug Organization Operating in Perry Housing ProjectsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a superseding indictment charging one of 12 defendants with additional charges. Tyshawn Bradley, 28, of Cheektowaga, N.Y., has been charged with possession of a short barreled rifle, possession of firearms in furtherance of drug trafficking, and conspiracy to commit money laundering. The additional charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, a $500,000 fine or both.
Bradley was arrested in April 2013, along with 11 other defendants, for allegedly operating a cocaine base distribution network in the Perry Projects in Buffalo. Also charged: Nannette Brown, 45, Darnell Brown, a/k/a D, 29, Dallas McLamore, a/k/a Ice, a/k/a Dal, 29, Eric Ross, 24, Brandon Atkins, a/k/a YB, 26, Tashawn Gay, 23, Melvin Tucker, a/k/a Hoff, 24, David Varner, 55, Latifah Donaldson, a/k/a LaLa, 22, Tara Robinson, a/k/a Coek, 24 and Phayon Redmond, a/k/a Booper, 28.
Defendants Nannette Brown and Eric Ross have been convicted and are awaiting sentencing.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the Perry Projects case, stated that the investigation focused on the drug trafficking activities of Tyshawn Bradley, Darnell Brown, Dallas McLamore and their associates. According to the indictment, Bradley, Brown, McLamore and Eric Ross operated a cocaine base and cocaine distribution organization on a daily basis out of several apartments within the Perry Housing Projects, including apartments within the high-rise towers located at 124 Fulton Street and 305 Perry Street. The organization also utilized a person under the age of 18 to distribute cocaine base to customers on the grounds of the public housing facility.The superseding indictment is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Matthew Renneman, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Monroe County, Kentucky, Physician Charged with Prescribing Pain Medications Outside the Course of Professional Medical Practice Which Resulted in the Death of A PatientRead the Press Release
BOWLING GREEN, Ky. – A Monroe County, Kentucky physician was charged by federal grand jury in Bowling Green, Kentucky today with prescribing pain medications outside the course of professional medical practice, which resulted in the death of a patient, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Clella Louise Hayes, whose medical practice is located in Tompkinsville, Kentucky, was charged in a 13 count indictment with dispensing and distributing Schedule II controlled substances and Schedule III controlled substances outside the course of her professional medical practice. Hayes, age 39, of Glasgow, Kentucky, is charged with issuing and authorizing prescriptions for fentanyl, morphine, Oxycodone, Demerol, hydrocodone, Cheratussin and valium. According to the indictment, the alleged activities occurred between June 2010 through March 2014 and included eight patients.
Specifically, the indictment alleges that on or about September 19, 2011, Hayes intentionally dispensed and distributed the Schedule II pain medication fentanyl to a patient, which resulted in the patient’s death. Further, between June 2009 and September 2011, Hayes is alleged to have intentionally dispensed and distributed Schedule II controlled substances to the same patient, outside the course of professional medical practice, by issuing and authorizing prescriptions for morphine, Oxycodone, and Demerol. During the same time period, the indictment charges Hayes with prescribing the Schedule III medication hydrocodone to the same patient outside the course of professional medical practice.
If convicted at trial, Hayes faces a minimum sentence of 20 years in prison, and a maximum sentence of life in prison, a fine of up to $2,500,000 and three years of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Kentucky State Police (KSP) Drug Enforcement/Special Investigations West, and the Federal Bureau of Investigation (FBI) with assistance from the Tompkinsville Police Department.
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless
proven guilty.Milwaukee Man Pleads Guilty to Sex Trafficking OffensesRead the Press Release
Najee C. Moore, 23, of Milwaukee, pleaded guilty today to five counts of conspiracy to engage in sex trafficking and one count of use of a facility in interstate commerce in aid of racketeering in the U.S. District Court for the Eastern District of Wisconsin.
According to documents filed in court, from 2007 through 2013, Moore engaged in multiple conspiracies knowing or in reckless disregard of the fact that means of force, fraud or coercion would be used to cause both minor and adult victims to engage in commercial sex acts in Milwaukee and elsewhere. Moore also used an internet website to promote his illegal enterprise.
“Bringing human traffickers to justice is a top priority of the Department of Justice,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “The Civil Rights Division is committed to the vigorous prosecution of those who prey upon, abuse, and exploit others for their own financial benefit.”
“Here in Eastern Wisconsin and throughout the nation, our focused and effective teams of investigators and prosecutors—federal, state, local and tribal—continue to identify, pursue and bring to justice those people who engage in this type of invidious criminal conduct,” said U.S. Attorney James L. Santelle for the Eastern District of Wisconsin. “Today’s plea reflects that unyielding commitment to address commercial sex trafficking in a manner that assists and supports the vulnerable victims of it and that responds to the legitimate community outrage over this destructive conduct.”
“Child prostitution remains a persistent threat to children in Wisconsin and across America,” said FBI Special Agent in Charge of the Milwaukee Field Office Robert J. Shields. “This investigation serves as a reminder that the predators that commit these crimes can reside anywhere. The FBI and its law enforcement partners remain committed to pursuing and stopping these subjects where ever they operate."
“This case is another example of how successful law enforcement can be when resources are combined to focus on those who engage in criminal behavior,” said Wisconsin Department of Justice – Division of Criminal Investigation (DCI) Administrator David Matthews. “Having received a tip, law enforcement at the state, local and federal levels – as part of the Human Trafficking Task Force – worked this case jointly to share information and support investigative efforts, all of which resulted in the arrest and successful prosecution of Najee Moore. I thank all of those involved for their contributions toward bringing justice in this case.”
“I’m proud of the work of the human trafficking investigators assigned to our Sensitive Crimes Division,” said Milwaukee Police Chief Edward Flynn. “Their partnered efforts with federal officials continues to result in the successful apprehension and prosecution of dangerous sexual predators.”
This prosecution is the result of the joint investigation by the Human Trafficking Task Force for the Eastern District of Wisconsin and was the work of cooperative efforts between enforcement agencies including the FBI, Milwaukee Police Department, Wisconsin Department of Justice - DCI, Homeland Security Investigations the U.S. Attorney’s Office for the Eastern District of Wisconsin and the Civil Rights Division.
The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division.
Middleburg Man Arrested for Possession of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the arrest of Orlando Justin Gomez (54, Middleburg). Gomez is charged in a criminal complaint with possession of child pornography. If convicted, he faces a mandatory minimum penalty of 10 years, up to a maximum penalty of 20 years in federal prison.
According to the complaint, on June 10, 2014, Gomez, who is a registered sexual predator, was found to be in possession of multiple images depicting prepubescent minors engaged in sexually explicit conduct.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Diidri Robinson.
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.
Michigan Woman Admits Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Michigan woman today admitted her role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever prosecuted, U.S. Attorney Paul J. Fishman announced.
Rosa Marmol, 36, of Grand Rapids, Mich., pleaded guilty today before U.S. District Judge Claire C. Cecchi, to a superseding information charging her with conspiracy to defraud the United States and theft of government property. Marmol had been previously indicted on these charges in February 2014.
According to documents filed in the case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud that results in more than $2 billion in losses annually to the U.S. Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico;
- They complete Individual Income Tax Return 1040 Forms using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 form are entitled to tax refunds – when in fact, the various tax withholdings indicated have not been paid and no refunds are due;
- They direct the U.S. Treasury Department to issue the refunds through checks to locations they control or can access, in various ways;
- SIRF perpetrators generate cash proceeds. Some sell the checks at a discount to face value. The buyers then cash the checks at banks or check cashing businesses or deposit them into bank accounts.
Federal law enforcement agencies, recognizing that SIRF was a serious problem, created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the New Jersey Task Force).
An investigation led by the New Jersey Task Force with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, has revealed that starting as early as 2007, dozens of individuals in the New Jersey and New York area have been engaged in large-scale, long-running SIRF scheme that has caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with losses to the U.S. Treasury of more than $12 million.
Members of the conspiracy obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fake 1040s, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted them, law enforcement officers learned just a handful of IP addresses created many of the fraudulent forms that led to the issuance of tax refund checks.
Marmol and the other members of the conspiracy then gained control of checks, sometimes bribing mail carriers to intercept checks and deliver them to other members of the conspiracy. Marmol used the bank accounts of her family’s bodega and check cashing business, Tienda Guadalajara Jalisco, in Grand Rapids to negotiate the checks she cashed.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in fraudulently applied for refund checks before they were delivered to members of the conspiracy.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; the U.S. Secret Service, under the direction of Special Agent In Charge James Mottola; and the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Carl Kotowski, for the investigation leading to today’s guilty plea.
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of theft of government property carries a maximum potential penalty of 10 years in prison and up to a $250,000 fine. Sentencing is scheduled for Sept. 10, 2014.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
14-215Defense counsel: Damian Conforti Esq., Newark
Marmol, Rosa Superseding Information
Methamphetamine Deals Lands Laredoan in Federal PrisonRead the Press Release
LAREDO, Texas - Carlos Mercado, 39, has been ordered to prison following his conviction for transportation with intent to distribute 2.7 kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. A federal jury convicted the Laredo resident on April 8, 2104, following a two-day trial.
Today, Senior U.S. District Judge George Kazen handed Mercado a total sentence of 160 months in federal prison followed by a five-year-term of supervised release. At the hearing, Judge Kazen admonished the defendant that the people who suffer the most from these lengthy prison sentences are the defendants’ families.During trial, the jury heard testimony that on April 11, 2012, Mercado left his South Laredo home and traveled to a Wal-Mart parking lot located on 2320 Bob Bullock Loop at Clark Boulevard where he met with an undercover agent to arrange for the transportation of 2.7 kilograms of methamphetamine to Dallas. Mercado handed the undercover agent a child’s backpack containing the methamphetamine, then followed him to a car wash where the agent concealed the drugs in a hidden compartment. Mercado followed the undercover agent up Interstate Highway 35 until making a U-turn one mile before the IH-35 Checkpoint.
Mercado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Manhattan U.S. Attorney Recovers $35,000 on Behalf of A United States Army Reserve Member from Cohere Communications, LLC and Its President, Steven T. Francesco, for Violations of the Uniformed Services Employment and Reemployment Rights ActRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that the United States Attorney’s Office settled a federal civil rights lawsuit brought on behalf of United States Army Reserve member William J. Pfunk (“Pfunk”), against COHERE COMMUNICATIONS, LLC (“COHERE”) and its president, STEVEN T. FRANCESCO (“FRANCESCO”). The lawsuit, which was filed in Manhattan federal court in December 2012, alleges that COHERE and FRANCESCO willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”) by terminating Pfunk’s employment because of his military service obligations and refusing to reemploy Pfunk upon his return from military service. The settlement, which was approved yesterday by United States District Judge Paul A. Engelmayer, requires COHERE and FRANCESCO to pay Pfunk $35,000 in lost wages and other damages and to implement a policy for military leaves of absence.
Manhattan U.S. Attorney Preet Bharara said: “Our soldiers should not have to be concerned that answering a call to serve their country means sacrificing their civilian jobs. This Settlement Agreement demonstrates that when employers disregard their legal obligations under USERRA, our Office will use all the legal tools available to us to hold them responsible for their violations and ensure compliance with the law in the future.”
According to the Complaint and other documents filed in Manhattan federal court:
Pfunk began working at COHERE, a telecommunications company located in Manhattan, in November 2011. Pfunk has been a member of the United States Army Reserves since 2006 and currently holds the rank of staff sergeant. In early April 2012, Pfunk received military orders requiring him to report to a four-day training event on April 9, 2012. Pfunk notified FRANCESCO that – due to his military obligations – he would be absent from work during the week of April 9, 2012. In response, FRANCESCO referred to Pfunk’s military obligations as “elective activities” and terminated Pfunk’s employment effective immediately. Pfunk requested an opportunity to discuss the situation with FRANCESCO upon his return from military service, but FRANCESCO declined to meet with him. Thereafter, a representative of Employer Support for the Guard and Reserve, an agency of the Department of Defense, contacted FRANCESCO in an effort to restore Pfunk’s employment, but FRANCESCO refused to reemploy Pfunk. When Pfunk informed FRANCESCO that he believed his rights under USERRA had been violated and that he would be seeking legal counsel if FRANCESCO was not willing to resolve the matter, FRANCESCO responded, “If you want a war, I can impact your life more than you can screw with mine” and advised Pfunk that he was “not to stop by for any reason.”
On May 28, 2014, Judge Engelmayer entered an Opinion and Order granting in part Pfunk’s motion for summary judgment and rejecting the contention by COHERE and FRANCESCO that Pfunk was an intern not entitled to the protections of USERRA. The Court held that no reasonable jury could conclude on the facts presented that Pfunk was an intern, and that, as a matter of law, Pfunk was an employee of COHERE for purposes of USERRA.
In the Settlement Agreement, COHERE and FRANCESCO admit and acknowledge that, within one day of FRANCESCO receiving an e-mail from Pfunk notifying him that Pfunk was going to be absent from work due to a military obligation, FRANCESCO terminated Pfunk’s employment with COHERE. COHERE and FRANCESCO also agree to compensate Pfunk for lost wages and other damages, implement a Military Leaves of Absence Policy that explicitly states that COHERE and FRANCESCO will take no adverse action against any employee or applicant for employment because he or she has taken, or expects to take, USERRA protected leave during the course of his or her employment, and to review the policy, in person, with all COHERE employees.
This case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorneys Christine Schessler Poscablo and Lara K. Eshkenazi are in charge of the case.
William Pfunk v. Cohere Communications, LLC and Steven T. Francesco Opinion and Order
William Pfunk v. Cohere Communications, LLC and Steven T. Francesco Settlement AgreementMalheur County Man Sentenced to 63 Months for Being a Felon in Possession of Firearms and AmmunitionRead the Press Release
EUGENE, Ore. – Cory Homestead, 35, of Nyssa, Oregon, was sentenced today by U.S. District Chief Judge Ann Aiken to 63 months in federal prison for unlawful possession of firearms and ammunition. Upon his release from prison, Homestead will be on supervised release for three years.
On August 15, 2012, Nyssa Police Department Officers responded to a domestic violence call and learned that Homestead had violently assaulted the female victim and fled with two firearms. Officers soon thereafter located Homestead passed out in his vehicle in possession of a loaded 9mm pistol and a .40 caliber pistol. Homestead has a history of domestic violence and has prior felony convictions for conspiracy to commit robbery, theft, and possession of a controlled substance.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Nyssa Police Department, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Loan Broker and Attorney Plead Guilty to Defrauding Investors of More Than $1 Million and to Obstructing Judicial ProceedingsRead the Press Release
Baltimore, Maryland - Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, and Gregory E. Grantham, age 56, of Oceanside, California, pleaded guilty late yesterday to a wire fraud conspiracy, wire fraud and obstruction of justice.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Phelan operated a small company called IAG Underwriters, LLC that maintained an office in Newport Beach, California. IAGU was in the business of underwriting loan applications submitted by real estate developers and then locating project financing from banks and other financial entities. Grantham, an attorney, held the position of IAGU’s general counsel on a part-time basis as a contract employee.
According to their plea agreements and court documents, between mid-2010 and August 2011, Phelan and Grantham became involved in a fraudulent scheme carried out by Patrick McCloskey and Brian McCloskey, who both resided in Baltimore County. McCloskey owned a real estate development business known as the McCloskey Group, LLC, while Belzner, a home builder, began working with McCloskey in late 2008 or early 2009. Phelan and IAGU began working with the McCloskey Group trying to locate sources of financing for its projects in about 2009.
Beginning in 2009 and continuing through June 2011, Belzner and McCloskey persuaded a series of private money lenders to loan them funds to establish that the McCloskey Group had additional reserves of liquidity that would supposedly help it obtain loans it was seeking in connection with real estate development projects through IAGU. Belzner and McCloskey falsely represented that the funds would be maintained in an escrow account under the control of Kevin Sniffen, a licensed attorney and escrow agent in Baltimore County; that the funds would not be used for any other purpose; and that the money would be returned to the lender, either upon the funding of the loan or after a specified period of time. In return for this temporary use of the lender 's funds, Belzner and McCloskey promised to pay substantial fees or interest. In fact, once the lenders transferred their funds into the escrow accounts, Belzner directed McCloskey to remove those funds from the escrow accounts without the knowledge or permission of the lenders. Belzner and McCloskey then used the majority of the stolen funds to pay for their personal and business expenses. The total losses resulting from the scheme were approximately $20 million. Belzner, McCloskey, and Sniffen have all previously entered guilty pleas in connection with their role in the scheme.
Beginning in about the late summer of 2010, Phelan and Grantham co-operated with Belzner and McCloskey in their scheme to defraud by (1) making false representations to help persuade private lenders and investment partnerships to loan sums of money to the McCloskey Group for the purposes of meeting “liquidity” requirements imposed by IAGU or various prospective lenders and to place these funds in an escrow account controlled by Kevin Sniffen; and by (2) making false representations to dissuade previous escrow account lenders from demanding the return of their funds when the original time period established for the loan expired without the McCloskey Group obtaining financing for the project in question. In particular, Phelan and Grantham repeatedly advised various escrow account lenders that funding on a particular project was imminent when they knew this was not the case, and in one case represented that they were now holding millions of dollars in escrow funds tendered by one group of lenders when this was not true.
While Phelan and Grantham admitted that they made false statements to escrow account lenders during the scheme at Belzner’s and McCloskey’s behest, they asserted that for most of the time period in question, they did not know that Belzner and McCloskey had previously stolen the escrow account funds. Under his plea agreement, however, Grantham admitted that he was criminally responsible for the loss of $1.2 million funds suffered by an investment entity named Murcielago, LLC in June 2011. As part of his plea agreement, Phelan admitted that he was criminally responsible for the loss of more than $2.5 million in escrow funds and pled guilty to a count charging him with making false representations about the control of $4.350 million in escrow funds to an escrow account lender in November 2011. The government continues to maintain that Phelan and Grantham shared criminal responsibility for the loss of over $20 million in escrow funds. The Court will consider evidence and make a finding on this issue at the defendants’ respective sentencings.
Phelan and Grantham also pleaded guilty to obstructing grand jury proceedings from September to December, 2012. During the summer and fall of 2012, a grand jury sitting in the District of Maryland was continuing the investigation of the fraud scheme. By this time, Belzner had already been indicted for conspiracy to commit wire fraud and this fact was publicly known. On September 26, 2012, FBI agents served Grantham and Phelan with grand jury subpoenas which called for the production of documents relating to the scheme. Thereafter, Phelan and Grantham agreed that they would not produce certain responsive records that were then on their computers or in their possession, because those particular records would reveal their cooperation with and assistance to Belzner and McCloskey in providing false information to the escrow account lenders and their counsel. The records that Phelan and Grantham were willing to produce were provided to the FBI on November 19, 2012; incriminating records were not produced or were deleted from their computers and compact discs.
Phelan and Grantham face a maximum sentence of 20 years in prison each on each charge of conspiracy and wire fraud, as well as a maximum sentence of five years in prison for obstruction of justice. U.S. District Judge James K. Bredar has scheduled sentencing for Phelan and Grantham on September 8 and 15, 2014, respectively.
Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Glen Arm, Maryland, Brian McCloskey, age 42, of Baltimore and Kevin Sniffen, age 52, of Phoenix, Maryland have each pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI and IRS – Criminal Investigation Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jefferson M. Gray and Kathleen O. Gavin, who are prosecuting the case.
Latrobe Post Office Employee Stole $55K in Money Orders and CashRead the Press Release
PITTSBURGH – A Westmoreland County woman pleaded guilty in federal court to a charge of misappropriation of postal funds, United States Attorney David J. Hickton announced today.
Jessica L. Croyle, 32, of Greensburg, Pa., pleaded guilty to one count before Senior United States District Court Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that from Nov. 1, 2012, to July 19, 2013, Croyle, while employed with the United States Postal Service at the Latrobe, Pennsylvania post office, wrongfully converted to her own use, postal money orders and cash having a total value of $55,362.90.
Judge Cohill scheduled sentencing for Sept. 22, 2014 at 3:30 p.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, 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.
Pending sentence, the court released Croyle on a $25,000 unsecured bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation that led to the prosecution of Croyle.
Laguna Pueblo Man Sentenced to Federal Prison for Assaulting his Intimate PartnerRead the Press Release
ALBUQUERQUE – Miles J. Riley, 25, was sentenced this afternoon to 32 months in federal prison followed by three years of supervised release for his conviction for domestic assault by a habitual offender, announced U.S. Attorney Damon P. Martinez and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Riley, a member of the Pueblo of Laguna who resides in Mesita, N.M., was arrested on Nov. 29, 2013, based on a criminal complaint alleging that he assaulted his intimate partner, a Laguna Pueblo woman, by striking her on the face on Aug. 25, 2013. Riley subsequently was indicted and charged with domestic assault by a habitual offender based on his two prior domestic violence convictions in the Pueblo of Laguna Tribal Court.
On Feb. 3, 2014, Riley pled guilty to the indictment and admitted assaulting the victim, his intimate partner, by striking her in the face multiple times with a closed fist on Aug. 25, 2013, in a location within the Pueblo of Laguna. Court records reflect that Riley previously was convicted on domestic violence charges before the Pueblo of Laguna Tribal Court in 2012 and 2013.
This case was investigated by the Laguna/Acoma Agency of BIA’s Office of Justice Services and the Pueblo of Laguna Police Department and was prosecuted by Special Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Lafayette Tax Preparer Sentenced to 24 Months in Prison for Preparing False ReturnsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Lutricia S. Feast, 52, of Youngsville, La., was sentenced by U.S. District Judge Elizabeth Foote to 24 months in prison and one year of supervised release for preparing false tax returns for herself and for her clients. The Judge also ordered Feast to pay $382,582 in restitution.
According to evidence presented at the guilty plea on November 25, 2013, Feast was a tax preparer in Lafayette Parish from 2001 to 2009. From 2006 to 2009, Feast admitted to only reporting a fraction of her income to the IRS. In one instance on her 2008 tax return, she reported her income as $14,400, when she actually earned $280,170. The defendant admitted during the guilty plea that between 2006 and 2009, her actual income was $830,986. She also admitted that she owes $287,860 in unpaid taxes. Feast filed false information on 22 tax returns in 2009 in order to provide her clients with refunds to which they were not entitled. She listed losses on tax forms in Schedule C, profit or loss from a business, for her clients, but when interviewed, clients said they had no businesses from which to lose money. The false returns caused the IRS to issue $96,915 in refunds that were not owed.“Tax preparers who file fraudulent tax returns by adding fictitious expenses, false deductions and unallowable credits to a taxpayer’s return are taking advantage of the system,” Finley stated. “Preparing false tax returns is a serious crime - anyone who chooses to willfully aid or assist in the preparing or filing of false tax returns, will be prosecuted to the fullest extent of the law. My office stands ready to assist the IRS during their investigation and will hold these tax preparers accountable for receiving tax credits that they are not entitled to receive.”
“Prior to pleading guilty, Lutricia Feast worked as an income tax preparer where she held herself out to be an expert in the field of tax preparation,” stated Gabriel L. Grchan, Special Agent in Charge of IRS Criminal Investigations, New Orleans Field Office. “She manipulated the income and expenses of unsuspecting clients in order to increase their refund. By doing this, Feast was able to generate a larger clientele thus increasing her income — income that she failed to report on her own personal income tax return. Both of these actions are criminal offenses. It is very important that taxpayers do not shop tax preparers for the highest refund, but instead, find a preparer with a sound reputation that will prepare an accurate tax return. When you sign your tax return you are agreeing, under penalty of perjury, that the return is correct.”
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. Visit www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional for more information. In the past decade, the U.S. Department of Justice’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
The IRS conducted the investigation. Assistant U.S. Attorney James T. McManus prosecuted the case.Jury Finds Appraiser Guilty of Bank FraudRead the Press Release
PITTSBURGH - After deliberating for approximately five hours, a federal jury of five men and seven women found James Lignelli guilty of three counts of bank fraud, United States Attorney David J. Hickton announced today.
Lignelli, 59, of Presto, Pa., was tried before United States District Judge Terrence F. McVerry in Pittsburgh.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Lignelli was an appraiser who provided fraudulently elevated appraisals in support of fraudulent loan applications in connection with two different mortgage fraud schemes. The first scheme involved Michael Pope, who operated Pope Financial Services and Tiffany Sprouts, who operated Sprouts Mortgage. Lignelli participated in a bank fraud scheme by preparing fraudulently elevated appraisals for the property located in McMurray, Pa., which was sold through the conspiracy for approximately $1.2 million. The second scheme involved a mortgage broker named Michael Staaf, who operated Beaver Financial Services, a mortgage broker company. Lignelli participated in a bank fraud scheme by preparing a fraudulent appraisal for a property located on Perry Highway in the North Hills of Pittsburgh.
Judge McVerry scheduled sentencing for Sept. 26, 2014, at 1:30 p.m. The law provides for a total sentence of 90 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Lignelli. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.