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1 August 2014
Houston Man Sentenced in Houston Theft and Fraud RingRead the Press Release
HOUSTON – Jason Wade Crawford, 36, has been ordered to federal prison for his convictions of bank fraud, access device fraud and aggravated identity theft, announced United States Attorney Kenneth Magidson. He pleaded guilty May 6, 2014.
Today, U.S. District David Hittner, who accepted the plea, handed Crawford a sentence of 15 months for the bank fraud and access device fraud charges to be served concurrently. For the aggravated identity theft, he was further ordered to serve a mandatory two years which must be served consecutively for a total sentence of 39 months in federal prison. Crawford will also be required to serve a term of three years of supervised release following completion of the prison term. He was further ordered to pay a $23,682.36 in restitution to the victims.
Beginning in at least May 2012, Crawford broke into several mail boxes throughout the Houston area to steal mail, much of which included checks, credit cards, gift cards and other mail with personal identifiers. He then created false identifications and used them to deposit or cash the checks.
Bank surveillance photos showed Crawford negotiating stolen checks at Woodforest National Bank and Amegy Bank. Local area law enforcement officers were also able to seize bags full of stolen mail from Crawford’s car.
At the time of his guilty plea, he admitted he participated in the mail theft ring and had used the personal identification information of another person to cash stolen checks.
Crawford 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 U.S. Postal Inspection Service. Assistant U.S. Attorney Julie Searle is prosecuting.
Hewlett-Packard Company Agrees to Pay $32.5 Million for Alleged Overbilling of the U.S. Postal ServiceRead the Press Release
The Justice Department announced today that Hewlett-Packard Co. (HP) has agreed to pay $32.5 million to resolve allegations under the False Claims Act that HP overcharged the U.S. Postal Service (USPS) for products between October 2001 and December 2010. HP is a manufacturer and vendor of information technology products and services headquartered in Palo Alto, California.
“Protecting the federal procurement process from false claims is central to the mission of the Department of Justice,” said Assistant Attorney General Stuart F. Delery for the Justice Department’s Civil Division. “We will continue to ensure that when the government purchases commercial products, it receives the prices to which it is entitled.”
The United States alleged that under a contract between HP and the USPS, HP overcharged USPS by failing to comply with pricing terms of the contract, including a requirement that HP provide prices that were no greater than those offered to HP customers with comparable contracts. The United States also alleged that HP made misrepresentations during the negotiation of the contract regarding its pricing and its plans to ensure it would provide the required most favored customer pricing.
“The Major Fraud Investigations Division (MFID) within the Postal Service Office of Inspector General fully investigates those contractors who wrongly take advantage of the Postal Service,” said Thomas Frost, MFID's Special Agent in Charge. “The Postal Service and the public must have complete confidence in the procurement process and MFID will continue to work diligently to make that happen.”
This matter was jointly investigated by the U.S. Postal Service, Office of the Inspector General and the Department of Justice’s Civil Division. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Grundy County Gun Dealer Indicted on Federal Charges for Allegedly Illegally Selling FirearmsRead the Press Release
CHICAGO ― A Grundy County gun dealer was indicted on federal firearms charges alleging that he illegally sold 11 firearms from either his store or his residence to an undercover law enforcement officer posing as a felon, as well as to a convicted felon who was cooperating with law enforcement, federal law enforcement officials announced today.
The defendant, PATRICK SEAN KEIRAN, 40, of Elwood, Ill., in Will County, has been a federally licensed firearms dealer since April 2013 and operated American Choice Firearms and Ammo in Gardner, Ill., in Grundy County.
A federal grand jury returned a six-count indictment yesterday charging Keiran with one count of selling firearms to an individual he had reason to believe was a convicted felon, one count of selling firearms to an individual who did not display a valid Firearm Owner’s Identification (FOID) Card, and four counts of selling firearms without recording the name, age, and residence of the purchaser.
Keiran will be arraigned on a date to be determined in U.S. District Court in Chicago. He was initially charged in a criminal complaint and arrested on July 2, and was released on bond. His gun store was closed at that time and the Bureau of Alcohol, Tobacco, Firearms, and Explosives removed the firearms and ammunition remaining in the store at that time.
According to the charges, between May 29 and June 20, 2014, Keiran illegally sold 11 firearms ― eight 9mm handguns, two .22 caliber rifles, and a .38 caliber revolver. ATF agents began investigating Keiran in May after receiving information from a confidential source that he was selling firearms to prohibited persons and falsifying ATF paperwork in an attempt to fraudulently legitimize the prohibited sales, according to the complaint. The charges allege that Keiran initially conducted the illegal sales with an undercover agent at his store and later conducted additional illegal sales with the agent and a cooperating individual at his residence.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Carl Vasilko, Special Agent-in-Charge of the Chicago Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Will County Sheriff’s Police Department, the Will County Metropolitan Area Narcotics Squad (MANS), and the Grundy County Sheriff’s Department assisted in the investigation.
Keiran faces five counts of illegally selling firearms that each carry a maximum sentence of five years in prison, and a sixth count that carries a maximum penalty of 10 years in prison, and all six counts carry a maximum fine of $250,000. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is being represented by Assistant U.S. Attorney Christopher Parente.
Indictment
Complaint
Former Senior Managing Director of Investment Bank Sentenced in Manhattan Federal Court to 30 Months for Insider Trading and Making False Statements to FBI AgentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that FRANK PERKINS HIXON, JR., a former Senior Managing Director of Evercore Group, LLC, a subsidiary of Evercore Partners Inc. (“Evercore”), was sentenced today to 30 months’ imprisonment for insider trading and false statement offenses. In April 2014, HIXON pled guilty before U.S. District Judge Ronnie Abrams to using inside information to trade and cause others to trade in the securities of Evercore, Westway Group Inc. (“Westway”), and Titanium Metals Corporation (“Titanium”), and to making false statements to FBI agents during the course of the investigation into his insider trading. Judge Abrams also imposed today’s sentence.
According to the Information and other documents filed in Manhattan federal court, as well as statements made during court proceedings:
Between April 2010 and January 2014, HIXON was a Senior Managing Director with the Mining and Metals Group of Evercore. HIXON used material non-public information that he acquired as part of his employment with Evercore to trade and cause trades in brokerage accounts belonging to the mother of his young child (“Individual A”), who lived in Austin, Texas, and to HIXON’s father (“Individual B”), who lived in Johns Creek, Georgia.
HIXON’s Insider Trading
In 2011, HIXON led an Evercore team in advising Westway about a non-public offer from another company (“Company A”) to purchase some of its business components and, more generally, in connection with potential transactions concerning Westway’s other business components. Company A’s offer was made in early September 2011, and a Special Committee was formed around that time to consider the offer and other strategic alternatives. Those developments were not announced publicly until December 15, 2011. Meanwhile, between October 21 and December 15, 2011, HIXON purchased, and caused to be purchased, 229,000 shares of Westway for Individual A’s brokerage account by logging into Individual A’s account from various locations, including Evercore’s Manhattan office. As the negotiations for the contemplated Westway transactions became protracted, HIXON sold and caused to be sold about 140,000 of the Westway shares that had accumulated in Individual A’s account, for a profit of approximately $260,000. Later, in 2012, HIXON made additional purchases of Westway shares for Individual A’s account, in advance of a tender offer for Westway’s outstanding equity securities that was announced on December 20, 2012. Profits reaped from sales of those shares amounted to approximately $104,000.
In October 2012, HIXON was invited, along with other Evercore personnel, to meet with a Special Committee of Titanium’s board of directors to discuss a potential engagement in connection with an unspecified $3 billion transaction. At the October 23, 2012, pitch meeting, which HIXON attended by teleconference from London, England, HIXON and the rest of the Evercore team learned that the transaction being considered was an acquisition of Titanium by Precision Castparts Corp. (“PCP”), a manufacturer of complex metal components and products. HIXON also learned the approximate offer price, and that the transaction was likely to close before year’s end.
Within approximately one hour of the meeting with the Special Committee, HIXON began buying 20,000 Titanium shares for Individual A’s account from a mobile device he was using in London, England. Eight days later, after HIXON had returned from England, 20,000 more shares of Titanium were purchased for Individual A’s account, mostly through logins from Evercore’s Manhattan office. That same day, HIXON caused Individual B to buy 15,000 shares of Titanium. After market close on November 9, 2012, Titanium announced PCP’s tender offer for its shares. The next trading day, November 12, 2012, all 40,000 of Individual A’s shares of Titanium were sold for a profit of approximately $180,000. Later that month, Individual B’s Titanium shares were sold for a profit of approximately $70,000.
On January 14, 2013, HIXON attended an Evercore partnership meeting at which he learned that Evercore would be announcing record financial results for the fourth quarter of 2012. During the two days preceding the bank’s January 30, 2013, announcement, HIXON, logging into Individual A’s account from Evercore’s Manhattan offices and from his home in Manhattan, bought 27,000 shares of Evercore for the account. At the same time, HIXON caused Individual B to purchase 10,000 shares of Evercore for Individual B’s account. After Evercore’s earnings release, Individual A and Individual B sold all of their Evercore shares, and reaped a combined profit of approximately $96,000.
Lies to Evercore and the FBI
In February 2013, Evercore asked HIXON to respond to a request from the Financial Industry Regulatory Authority (“FINRA”) and to identify any known names from a list of people and entities that had traded in Titanium stock prior to PCP’s tender offer. Although Individual A and B were both on the FINRA list, HIXON responded by email: “No known relationships.”
When, following further inquiry from FINRA, Evercore confronted HIXON about his failure to identify Individual A—who, as noted above, is the mother of his young child—HIXON claimed not to know Individual A by her legal name, which was what appeared on the FINRA list, and to know her only by a different name that she uses. Documents produced by Evercore, including text messages and emails between HIXON and Individual A, make clear that HIXON had, in fact, long been aware of Individual A’s legal name. And bank records show that he wrote numerous large checks to Individual A, in her legal name, from 2009 to 2010.
Confronted by Evercore with his failure to identify his own father’s name on the FINRA list for Titanium, Hixon asserted that the associated location given for Individual B on the FINRA list, Duluth, Georgia, was inaccurate because Individual B lived in Johns Creek, Georgia. Johns Creek shares a zip code with portions of Duluth, and was only incorporated as its own city many years after Individual B had begun living there. The city listed on the brokerage account statements for Individual B’s account was Duluth, not Johns Creek.
Following Evercore’s inquiries into his conduct, HIXON agreed to swear out a declaration memorializing certain statements he had made upon having been confronted with matters related to Titanium. Among the statements to which Hixon swore was this one: “I did not share any information about Titanium Metals Corporation (‘TIMET’) with anyone outside of Evercore, and was fully aware of my obligations to keep any information I learned about any transaction involving TIMET confidential . . . .”
After swearing out this statement, HIXON called Individual B to alert him to expect an inquiry from an Evercore representative about his Titanium trades. HIXON explained to Individual B that he had provided “privileged information” to Individual B about Titanium, but that he had denied as much in a signed statement to Evercore. HIXON then coached Individual B to lie to Evercore by saying, among other things, that Individual B had researched Titanium and bought the stock on his own. Individual B followed HIXON’s instructions and lied to Evercore’s representative.
On January 27, 2014, FBI agents interviewed Individual A at her home in Austin. She told them, in sum and substance, that her own trading in Titanium and in Westway had been prompted by research she had done, rather than by HIXON. She further claimed that HIXON had never had access to, or traded in, her brokerage account.
On January 28, 2014, HIXON met with two FBI agents and told them, among other things, that he did not have access to and had never traded in Individual A’s brokerage account. HIXON also claimed that he never recommended particular stocks to either Individual A or Individual B, because he did not want to be held responsible for the performance of the stocks he might pick. Regarding Titanium, HIXON said he had been “shocked” by the news that it would be acquired by PCP, and had been surprised at the purchase price.
In addition to the prison sentence, HIXON, 55, of New York, New York, was fined $100,000 and ordered to forfeit $710,000 and to pay $1,204,777.80 in restitution to Evercore. HIXON was also sentenced to three years supervised release.
Mr. Bharara praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action. Mr. Bharara also thanked Evercore for its cooperation in this matter.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Sarah E. McCallum is in charge of the prosecution.
Former Owner of Southern California Medical Supply Company Found Guilty for a 10-Year, $8.3 Million Medicare Fraud SchemeRead the Press Release
On July 31, 2014, a federal jury in Los Angeles found that the former owner of a durable medical equipment (DME) supply company located in Carson, California, was guilty of health care fraud charges relating a 10-year scheme in which Medicare was fraudulently billed more than $8 million for DME that was not medically necessary.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, Special Agent in Charge Glenn R. Ferry of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Region, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office and Special Agent in Charge Erick Martinez of the IRS-Criminal Investigation’s (IRS-CI) Los Angeles Field Office made the announcement.
Olufunke Ibiyemi Fadojutimi, 42, of Carson, California, is a registered nurse and the former owner of Lutemi Medical Supply. He was found guilty after trial of one count of conspiracy to commit health care fraud, seven counts of health care fraud and one count of money laundering. Sentencing will be scheduled at a later date.
The trial evidence showed that between September 2003 and January 2013, Fadojutimi and others paid cash kickbacks to patient recruiters and physicians for fraudulent prescriptions for DME, such as power wheelchairs, that the Medicare patients did not actually need. Fadojutimi and others then used these prescriptions to bill Medicare for the power wheelchairs and other DME. Approximately $8.3 million in false and fraudulent claims were submitted to Medicare, and Medicare paid almost $4.3 million on those claims.
The case is being investigated by HHS-OIG Los Angeles Region, the FBI and IRS-CI Los Angeles Field Office. The case is being prosecuted by Trial Attorneys Fred Medick and Blanca Quintero of the Criminal Division’s Fraud Section, and was previously prosecuted by the Fraud Section’s Jonathan T. Baum.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009, between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG , are taking steps to increase accountability and decrease the presence of fraudulent providers. To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Former NYPD Sergeant Who Participated in $4.7 Million Real Estate Fraud Sentenced to 58 Months in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York announced that JAMES MONAHAN, the owner of a real estate investment company called Panam Management Group, Inc., was sentenced to 58 months in prison. MONAHAN previously pled guilty on May 29, 2013, to one count each of wire fraud, mail fraud and conspiracy to commit wire and mail fraud for operating a fraudulent real estate scheme. In connection with the scheme, MONAHAN obtained approximately $4.7 million from investors for a real estate development project he claimed to be constructing in the Dominican Republic and then misappropriated those funds. The real estate project was never developed and investors lost all of their money. He was sentenced today by U.S. District Judge John G. Koeltl.
According to the Indictment, statements made during MONAHAN’s guilty plea proceeding, and a Complaint previously unsealed in Manhattan federal court:
Beginning in early 2008, MONAHAN, a former sergeant in the New York City Police Department (“NYPD”), negotiated with another real estate investment company to solicit investors for a project he claimed to be constructing in the Dominican Republic. During the negotiations, MONAHAN repeatedly touted his prior service with the NYPD as proof of his trustworthiness and as a reason to invest in the project.
In connection with the project, MONAHAN and a co-conspirator, EDWARD ADAMS, who was a New York based attorney, executed agreements that required investor funds to be deposited into escrow accounts that were to be managed by ADAMS. The agreements required that the majority of the funds be deposited in an account to which the defendants would not have access. From October 2008 through February 2009, approximately $4.7 million in investor funds was deposited into the escrow accounts. Shortly after the deposits were made, the funds were improperly withdrawn from the account by ADAMS without disclosure to investors.
In an effort to hide the fact that the funds had been removed from the escrow account, in May 2009, MONAHAN mailed a forged letter on the stationary of a major bank to investors claiming that their money was safely deposited with that bank. In fact, by June 2009, all of the investor funds had been taken from the escrow accounts. At that point, almost no work had been performed on the purported project in the Dominican Republic and no money was returned to investors.
In addition to the prison term, Judge Koeltl sentenced MONAHAN, 44, of New York, New York, to 3 years of supervised release. MONAHAN was also ordered to forfeit $4.7 million.
Mr. Bharara praised the work of the Federal Bureau of Investigation and the Securities and Exchange Commission.
This case is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office's Securities and Commodities Fraud Task Force. Assistant U.S. Attorney John T. Zach is in charge of the prosecution.
U.S. v. James Monahan Indictment
Former Investment Advisor Pleads Guilty to Wire Fraud, Tax EvasionRead the Press Release
ROANOKE, VIRGINIA – A former investment advisor employed by the Roanoke, Va. branch of an unnamed global financial services firm, pled guilty yesterday afternoon in the United States District Court for the Western District of Virginia in Roanoke to wire fraud and tax evasion charges.
Donna J. Tucker, 58, of Roanoke, Va., waived her right to be indicted yesterday afternoon and pled guilty to a two-count Information charging her with one count of wire fraud and one count of tax evasion. In addition, Tucker’s plea agreement holds her accountable for restitution to victims including but not limited to up to $1 million.
“Ms. Tucker violated the trust of her clients and schemed to steal their hard-earned savings,” United States Attorney Timothy J. Heaphy said today. “Our office will continue to use all the resources available to investigate fraud and pursue restitution for its victims.”
According to information presented at yesterday’s guilty plea hearing by Special Assistant United States Attorney Drew Bradylyons, Tucker was an investment advisor in Roanoke from 2007 through April 2013. In August 2010, Tucker forged the signature of one of her clients, an elderly couple who held a joint account, in order to obtain a line of credit, supposedly for the clients, through her firm’s banking arm. Tucker took these actions without the knowledge or consent of the victim.
Approximately one year later, on August 4, 2011, Tucker caused to be transmitted a wire transfer of $295,000 from the victim’s account to her own account at a local credit union. These funds were used to benefit Tucker and her family. In addition, Tucker took steps to ensure the victims did not learn of the unauthorized transfer by instructing others at her firm to place the victims in an all-electronic delivery system that would send the victim’s account statements by email. Tucker also made false statements to the victims, other employees at the firm and created false documents in order to carry out the scheme.
Additionally, in calendar year 2011, Tucker reported to the Internal Revenue Service a taxable income of $125,333. The defendant has admitted to knowingly failing to report additional taxable income of at least $340,000, which resulted in an additional tax of at least $115,000 being owed to the United States.
At sentencing, Tucker faces a maximum possible penalty of up to 20 years in prison and/or a fine of up to $250,000 on the wire fraud charge and a maximum possible penalty of up to five years in prison and/or a fine of up to $250,000 on the tax evasion charge.
The investigation of the case was conducted by the United States Secret Service, the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations and the Roanoke City Police Department. Assistant United States Attorney Daniel Bubar and Special Assistant United States Attorney Drew Bradylyons are prosecuting the case for the United States.
Former Immigration Officer Convicted at Trial for Taking Bribes and Witness TamperingRead the Press Release
SANTA ANA, California – A former immigration officer was convicted on Friday afternoon in federal court for taking bribes from Cambodian immigrants in exchange for immigration benefits, including granting the immigrants temporary legal status, while he was working in the Santa Ana federal building. The former immigration officer and his wife were also convicted of witness tampering.
Billy Louis Nelms, Sr., 54, of Los Angeles, was convicted of felony counts of conspiracy to commit bribery and defraud the United States, bribery, conspiracy to witness tamper, and witness tampering. Sokhon Nelms, 60, of Los Angeles, was convicted of conspiracy to witness tamper and witness tampering. As a result of Friday's convictions, Mr. Nelms faces a statutory maximum sentence of 95 years, and Mrs. Nelms faces a statutory maximum sentence of 60 years.
The evidence at trial showed that between 2005 and August 2008, Mr. Nelms worked in the Santa Ana federal building as an immigration officer in the Fraud Detection and National Security unit. The evidence showed that during that time, as part of the scheme, the Cambodian immigrants were promised permanent legal status. The Cambodian immigrants were present in the United States without legal status. The immigrants typically paid approximately $5,000 in cash for the permanent legal status. In exchange, Mr. Nelms stamped immigration documents, giving the immigrants temporary legal status in the United States. The evidence at trial showed that following Mr. Nelms’s original indictment in this case for bribery and defrauding the United States in June 2013, Mr. Nelms and Mrs. Nelms tampered with two of the witnesses identified in the original indictment. On one occasion, with Mr. Nelms present, Ms. Nelms told a witness not to speak to anyone.
This case is the product of an investigation by the Department of Homeland Security’s Office of Inspector General (DHS-OIG). The United States Citizenship and Immigration Services (USCIS) and Immigration & Customs Enforcement’s Homeland Security Investigations Forensic Laboratory (HSI-FL) provided assistance in the investigation
Release No. 14-100
Forest Place Apartments' Arsonist Pleads Guilty, Agrees to Pay $12.5 in RestitutionRead the Press Release
Little Rock – Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, announced today that Lacey Rae Moore pleaded guilty to starting the fire that resulted in the complete destruction of the North Building of the Forest Place Apartments on University Avenue in Little Rock. Moore entered her guilty pleas to two counts of arson before United States District Judge J. Leon Holmes.
“There is no way to restore what people lost in the fires set by Lacey Moore at Forest Place Apartments,” stated Thyer. “There is, however, some consolation in this plea today that Ms. Moore is being held responsible for the millions of dollars’ worth of damage to the destroyed buildings, the injuries to the two valiant firefighters and the displacement of residents as a result of the fires she started. I, again, want to commend the agents from the Bureau of Alcohol, Tobacco, and Firearms, and all the members of the Little Rock Fire Department, Arkansas State Police and Little Rock Police Department for heroic efforts at saving lives and their investigative work on a puzzling string of fires. Ms. Moore has been stopped from setting additional fires and will have to pay for the damage she inflicted on so many innocent people in Little Rock.”
In February, Moore was indicted on seven counts of arson following an investigation into seven separate fires that broke out at Forest Place Apartments between February and June of 2013. An eighth count charged her with setting off an unregistered incendiary device at a private residence. The two counts to which Moore pleaded, Counts 4 and 7, stem from the two largest fires at Forest Place in 2013.
Moore pleaded guilty to starting the fire on May 16 (Count 4) that destroyed the North Building, resulting in the evacuation of more than 300 residents, permanently displacing 79 residents, leading to injuries to Little Rock firefighters and caused millions of dollars in damage. Moore also pleaded guilty to starting the fire in the South Building on June 28 (Count 7) that forced another 100 residents to be evacuated. As part of a plea deal, the remaining counts will be dismissed, although Moore said in the hearing today that she set all the fires and she accepts responsibility for paying the restitution owed for all seven Forest Place fires. To date, the amount of known restitution is more than $12.5 million.
Moore faces a statutory sentencing range for starting the May 16, 2013, fire of at least 7 to 40 years imprisonment, and for the June 28, 2013, fire, of at least 5 to 20 years imprisonment. As part of the plea agreement, the United States and Moore agreed to recommend to the sentencing judge, United States District Judge Billy Roy Wilson, that the sentences run consecutively, for a minimum sentence of 12 years.
The investigation was conducted by the ATF, with substantial assistance from the Little Rock Fire Department, the Arkansas State Police and the Little Rock Police Department. The case is being prosecuted by Assistant United States Attorney Chris Givens.
Federal Officer Charged with Witness Tampering for Allegedly Hindering Investigation of Sham MarriageRead the Press Release
CHICAGO — A federal law enforcement officer was indicted on witness tampering charges for allegedly attempting to thwart an investigation of a sham marriage that she arranged a decade earlier. The defendant, ENKHCHIMEG ULZIIBAYAR EDWARDS, was charged with two counts of witness tampering in a federal grand jury indictment that was returned yesterday and announced today.
Edwards, also known as “Eni Edwards, 36, of Carpentersville, a U.S. Customs and Border Protection officer at O’Hare International Airport, will be arraigned on a later date to be determined in U.S. District Court.
The charges resulted from an investigation by the U.S. Department of State, Diplomatic Security Service Chicago Field Office. The U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Department of Homeland Security’s Office of Inspector General assisted in the investigation.
According to the indictment, Edwards arranged for Individual A, a Mongolian citizen, to marry a friend of hers, Individual B, who was a U.S. citizen. Edwards arranged the marriage so Individual A could apply for and obtain U.S. citizenship through marrying Individual B. In July 2003, Individuals A and B were married in Las Vegas. Shortly after they were married, the couple applied for Individual A to become a naturalized U.S. citizen. After the U.S. Citizenship and Immigration Services requested additional information, Individual B failed to provide the requested information and stopped pursuing U.S. citizenship for Individual A. After the naturalization petition was rejected, Individuals A and B divorced in May 2004.
By January 2013, federal law enforcement authorities were conducting an investigation of the role that Edwards played in the marriage of Individuals A and B. On Jan. 8, 2013, and again the following day, Edwards allegedly engaged in witness tampering by attempting to corruptly persuade Individual B, with intent to hinder, delay, and prevent Individual B from communicating information to law enforcement relating to a federal crime.
Each count of witness tampering carries a maximum penalty of 20 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Scott F. Collins, Acting Special Agent-in-Charge of the U.S. Department of State, Diplomatic Security Service Chicago Field Office.
The government is being represented by Assistant U.S. Attorney Peter S. Salib.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Federal Inmate Charged with Mailing Threatening CommunicationsRead the Press Release
The United States Attorney for the Middle District of Pennsylvania, announced that charges have been filed against Sinclair L. Atkins who is currently confined at United States Penitentiary Terre Haute, Indiana.
According to United States Attorney, Peter Smith, Atkins, age 63, is charged in a one-count felony information with mailing threatening letters to various federal officials. The offense is alleged to have occurred in November 2011, while Atkins was confined at the United States Penitentiary, Lewisburg, Pennsylvania.
The investigation was conducted by the Federal Bureau of Investigation, and the United States Marshal’s Service. Assistant United States Attorney Wayne P. Samuelson is assigned to prosecute the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
The government also filed a plea agreement in the case which is subject to the approval of the assigned judge.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statues and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is ten years imprisonment, and a fine of $250,000. 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.
Father and Son Sentenced for Flathead Cocaine ConspiracyRead the Press Release
MISSOULA -Whitefish father and son, Scott Joseph Hineman, 60, and Benjamin Scott Hineman, 29, were sentenced on July 31, 2014 for conspiracy to distribute cocaine in the Flathead, Montana area. Both defendants were sentenced after pleading guilty on April 22, 2014. Benjamin Hineman was sentenced to 60 months in prison, 5 years supervised release, and $100 special assessment. Scott Hineman was sentenced to 120 month in prison, 5 years supervised release, and $100 special assessment. In addition, Scott Hineman was ordered to forfeit $75,000 and a Harley Davidson motorcycle.
In an Offer of Proof filed by Assistant U.S. Attorney Tara Elliott,
June of 2012, members of the Northwest Drug Task Force (NWDTF) received information from a confidential informant (CI) indicating that Scott Hineman was distributing cocaine in the Flathead, Montana area.
From June of 2012 through March of 2013, the CI purchased varying amounts of cocaine from Hineman at the direction and under the supervision of members of the NWDTF. On April 9, 2013, the NWDTF obtained and executed a search warrant at Hineman's residence. They recovered 828 grams of cocaine and six firearms from the residence.
Hineman later spoke with members of law enforcement and admitted to traveling to Arizona to purchase kilogram quantities of cocaine and re-distributing the cocaine in the Flathead area.
In March of 2013, members of the Northwest Drug Task Force (NWDTF) received information from a confidential informant (CI) indicating that Ben Hineman was distributing cocaine in the Flathead, Montana area. The CI indicated that he had been purchasing cocaine from Hineman for the previous three years approximately twice a month in 1/4 pound quantities. The CI had just purchased five ounces of cocaine from Hineman and gave members of the NWDTF the two ounces he had remaining.
On March 22, 2013, the CI purchased four ounces of cocaine from Hineman at the direction and under the supervision of members of the NWDTF. The CI also paid Hineman $4500 that was owed from the previous purchase of five ounces of cocaine.
On April 9, 2013, the NWDTF obtained and executed a search warrant at Hineman's residence. They recovered 68 grams of cocaine and one firearm from the residence.
The investigation was conducted by Homeland Security Investigations and the Northwest Drug Task Force.
Father and Son Charged with Defrauding Foster FarmsRead the Press Release
FRESNO, Calif. — Surjit Toor, 59, and his son Raju Toor, 34, both of Hilmar, were arraigned in Fresno today for a scheme that defrauded Foster Farms of more than $46,000, United States Attorney Benjamin B. Wagner announced.
A federal grand jury returned an indictment on Thursday, charging the defendants with conspiracy to commit mail fraud and one count of mail fraud for a scheme that billed Foster Farms for work that was never performed. The defendants pleaded not guilty and were released on their own recognizance.
According to court documents, Surjit Toor was a maintenance manager at the Foster Farms processing plant in Livingston, and Raju Toor operated a construction company called Mid State Mechanical (Mid State). Surjit Toor was responsible for hiring third party contractors to work at the plant when needed. The indictment alleges that Raju Toor would submit fraudulent invoices to Foster Farms, and Surjit Toor would approve them in order to cause Foster Farms to pay for work that was never performed.
On February 22, 2012, Surjit Toor caused Foster Farms to send a purchase order to Mid State requesting that Mid State construct a 110-foot inspection catwalk at the Foster Farms processing plant. Raju Toor then sent Foster Farms an invoice for more than $20,000, which Surjit Toor approved. However, an in-house maintenance team had already constructed the catwalk a month earlier. The defendants also received payment for a fraudulent ammonia vessel project involving the modification of a large metal tank designed to hold ammonia, which is part of the plant’s refrigeration system. Surjit Toor caused Foster Farms to send a purchase order to Mid State for this project, and although Raju Toor did not perform any work, he sent an invoice, and Surjit Toor approved payment.
In March 2012, Foster Farms mailed a check to Raju Toor that included payment for the catwalk and ammonia vessel projects. Raju Toor transferred the majority of the funds back to his father.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Grant B. Rabenn and Special Assistant United States Attorney Brian A. Fogerty are prosecuting the case.
If convicted, Surjit Toor and Raju Toor face a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Concord Man Charged with Embezzling $215,000 from SchoolRead the Press Release
A criminal information was filed in U.S. District Court charging the former director of the Cleveland Clinic Foundation Nursing Anesthesiology School with embezzling $215,760.07 from the school, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Paul Blakeley, age 58, of Concord Township, Ohio, is charged in the one-count information. The information alleges that from approximately January 2007 to approximately April 2013, the defendant issued approximately 110 checks drawn on accounts maintained by the school without authorization, and made them payable to his spouse, various merchants and credit card issuers.
In addition, with regard to approximately 50 of the unauthorized checks, the defendant forged the payee’s endorsement before depositing the checks into his personal bank account, according to the information.
As a result of the scheme, the school suffered losses totaling $215,760.
If convicted, the defendant’s sentence will be determined by the court after consideration of the federal sentencing guidelines which depend upon a number of factors unique to each case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorneys Robert W. Kern and Miranda Dugi following an investigation by the Cleveland Clinic Protective Operations and the United States Secret Service.
Chinese National, Yiping Qu, Sentenced for Conspiracy to Smuggle Goods from the United StatesRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced that YIPING QU, 30, a Chinese national who was living in New Jersey, was sentenced yesterday by U.S. District Judge Nannette Jolivette Brown to a 36-month term of imprisonment.
According to court documents, QU pled guilty to an indictment charging him with conspiring to illegally export United States defense articles to China without obtaining required licensing from the Department of State. Upon release from imprisonment, QU is subject to deportation to China.
This case was investigated by Special Agents U.S. Immigration and Customs Enforcement/Homeland Security Investigations and prosecution was handled by Assistant United States Attorney Gregory M. Kennedy.
Cedar Rapids Man Pleads Guilty to Distributing Heroin That Caused Overdose DeathRead the Press Release
A man who distributed heroin to an individual who died from using the heroin pled guilty on July 28, 2014, in federal court in Cedar Rapids.
Austin Allen Martens, age 24, from Cedar Rapids, Iowa, was convicted of distribution of heroin.
In a plea agreement, Martens admitted that he distributed $80 worth of heroin to another individual in March 2013. The purchaser was found deceased the next day, having overdosed after using the heroin distributed by defendant.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Martens remains in custody of the United States Marshal pending sentencing. Martens faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, the Iowa Division of Narcotics Enforcement, and the Sixth Judicial District Department of Correctional Services.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-40-1-LRR.
Black P-Stones Gang Member Sentenced to 30 Years in Prison on Racketeering Conspiracy and Firearms ChargesRead the Press Release
Marcellus Williams, aka “Math,” “P-Shooter” and “Manny,” 27, of Newport News, Virginia, was sentenced today to serve 30 years in prison, followed by five years of supervised release, for engaging in numerous gang-related crimes as a ranking member of the Black P-Stones, including shootings of rival gang members, robberies and drug dealing.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentence was imposed by U.S. District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Williams was a “First Superior” in the Black P-Stones, a violent street gang also referred to as the P-Stone Bloods and Cobra Stones. The Black P-Stones operated primarily in the Beechmont, Courthouse Green and Woodview neighborhoods in the Denbigh area of Newport News, Virginia, and its members engaged in various criminal activities including murders, robberies, drug trafficking and obstruction of justice. As a First Superior, Williams directed and participated in the gang’s criminal activities, including robberies, attempted murder and marijuana sales.
According to the statement of facts, on April 27, 2008, Williams and other Black P-Stones members participated in a broad-daylight shooting on Warwick Boulevard in Newport News targeting a rival gang member. The rival was shot twice and injured in his mouth, neck and shoulder.
Additionally, on Dec. 10, 2008, Williams and other Black P-Stones members retaliated against a rival gang member who exhibited disrespect toward Williams’s girlfriend. Approximately seven to eight bullets were fired at the rival gang member’s home in Williamsburg, Virginia, with bullets ripping through the living room and front door while two people were inside.
Further, on March 9, 2009, Williams and other Black P-Stones members shot at the home of a rival gang member in retaliation for a previous altercation. The rival gang member and another individual were inside of the home during the shooting, and one bullet nearly struck one of the people inside.
Williams was charged in a superseding indictment on Dec. 9, 2013, and pleaded guilty on April 15, 2014, to one count of racketeering conspiracy and one count of possessing and discharging a firearm in furtherance of a crime of violence.
The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department, and the Virginia State Police. The case is being prosecuted by Trial Attorneys Louis A. Crisostomo and Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia.Black P-Stones Gang Member Sentenced to 30 Years in Prison on Racketeering Conspiracy and Firearms ChargesRead the Press Release
WASHINGTON – Marcellus Williams, aka “Math,” “P-Shooter” and “Manny,” 27, of Newport News, Virginia, was sentenced today to serve 30 years in prison, followed by five years of supervised release, for engaging in numerous gang-related crimes as a ranking member of the Black P-Stones, including shootings of rival gang members, robberies and drug dealing.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement after sentence was imposed by U.S. District Judge Arenda Wright Allen.
According to a statement of facts filed with his plea agreement, Williams was a “First Superior” in the Black P-Stones, a violent street gang also referred to as the P-Stone Bloods and Cobra Stones. The Black P-Stones operated primarily in the Beechmont, Courthouse Green and Woodview neighborhoods in the Denbigh area of Newport News, Virginia, and its members engaged in various criminal activities including murders, robberies, drug trafficking and obstruction of justice. As a First Superior, Williams directed and participated in the gang’s criminal activities, including robberies, attempted murder and marijuana sales.
According to the statement of facts, on April 27, 2008, Williams and other Black P-Stones members participated in a broad-daylight shooting on Warwick Boulevard in Newport News targeting a rival gang member. The rival was shot twice and injured in his mouth, neck and shoulder.
Additionally, on Dec. 10, 2008, Williams and other Black P-Stones members retaliated against a rival gang member who exhibited disrespect toward Williams’s girlfriend. Approximately seven to eight bullets were fired at the rival gang member’s home in Williamsburg, Virginia, with bullets ripping through the living room and front door while two people were inside.
Further, on March 9, 2009, Williams and other Black P-Stones members shot at the home of a rival gang member in retaliation for a previous altercation. The rival gang member and another individual were inside of the home during the shooting, and one bullet nearly struck one of the people inside.
Williams was charged in a superseding indictment on Dec. 9, 2013, and pleaded guilty on April 15, 2014, to one count of racketeering conspiracy and one count of possessing and discharging a firearm in furtherance of a crime of violence.
The investigation was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department, James City County Police Department, and the Virginia State Police. The case is being prosecuted by Trial Attorneys Louis A. Crisostomo and Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Eric M. Hurt of the Eastern District of Virginia.
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Belleville Man Sentenced for Firearm OffenseRead the Press Release
Follow @SDILNewsRonnell M. Hunter, 21, of Belleville Illinois, was sentenced on August 1, 2014, in federal district court, in East St. Louis, Illinois, for unlawfully possessing a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Hunter was sentenced to 24 months in prison, to be followed by three years supervised release, fined $250, and ordered to pay a $100 special assessment. He was apprehended after he ran from law enforcement officers requesting he show identification, as he walked through the John DeShields Housing Complex in East St. Louis, Illinois. A Smith & Wesson .38 semi-automatic pistol was discovered in Hunter’s pocket during a pat down after his arrest. Hunter admitted to knowingly possessing the firearm.
This case was investigated by the East St. Louis Police Department and prosecuted by Special Assistant United States Attorney Neal C. Hong.
Aurora Drug Dealer Pleads Guilty to Distributing CocaineRead the Press Release
DENVER – Robert Bellender, age 39, of Aurora, Colorado, pled guilty earlier this week before U.S. District Court Judge Christine M. Arguello to possession with intent to distribute cocaine and money laundering, federal authorities announced. Judge Arguello is scheduled to sentence Bellender on October 28, 2014. Bellender was originally charged by a criminal complaint on May 10, 2013, followed by a superseding indictment on June 18, 2013. Other defendants charged in the superseding indictment include Korian Bascombe (aka k-Mac), Victor Rivas-Pinzon, Andrew T. Sorensen and Bruce Thomas. Sorensen pled guilty and will be sentenced on August 21, 2014. Rivan-Pinzon and Thomas plead guilty and were sentenced to 42 and 38 months in prison, respectively. Bascombe is scheduled for trial on September 22, 2014.
According to information contained in court documents, including the stipulated facts contained in Bellender’s plea agreement, the investigation started in October of 2011 and continued through the date of Bellender’s arrest on May 28, 2013. Numerous cocaine purchases from Bellender were made by a DEA undercover agent. Through investigative techniques, agents noted that codefendants Thomas, Sorensen and numerous other individuals, both known and unknown, were ordering quantities of powder and crack cocaine from Bellender on numerous occasions.
Bellender’s initial supplier of cocaine stopped distributing to him. At that point, Bellender began to purchase distribution quantities of powder cocaine and crack cocaine from Bascombe who was in turn being supplied with powder cocaine by Rivas-Pinzon. Bellender was selling both forms of cocaine during this entire period. Bellender and Bascombe were converting or “cooking” powder cocaine to convert it into the crack form.
Based on the investigation of the Front Range Task Force, which includes DEA, IRS CI and Aurora PD, from October of 2011 through May of 2013, Bellender and his coconspirators purchased and distributed or sold a conservatively estimated 20 kilograms or more of cocaine and 5 kilograms or more of crack cocaine. Bellender was purchasing cocaine from Bascombe for $1,200 per ounce. Twenty kilograms is the equivalent of approximately 705 ounces.
Bellender pled guilty to ten counts of possession with the intent to distribute cocaine which carries a penalty of not more than 20 years in federal prison and a fine of up to $1,000,000 per count; and one count of money laundering, which carries a penalty of not more than 20 years in federal prison, and a fine of up to $500,000 per count.This case was investigated by agents with the Front Range Task Force which includes the Drug Enforcement Administration, IRS Criminal Investigation (IRS CI) and the Aurora Police Department. The case is being prosecuted by Assistant U.S. Attorney James R. Boma.
Armed Bank Robber Sentenced to over 11 Years in Prison for Robbery in DundalkRead the Press Release
Used Inside Information Provided by His Accomplice, a Former Teller-Trainee at the Bank
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Darrius Roszario D. Washington, age 20, of Baltimore, Maryland, today to 135 months in prison followed by five years of supervised release for an armed bank robbery in which Washington forced a teller at gunpoint to accompany him and open the bank vault.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief James W. Johnson of the Baltimore County Police Department.
According to Washington’s plea agreement, on October 1, 2013, Washington and his accomplice, Janaya Brittne Person-Robinson parked his car in a lot near the M&T Bank in Dundalk. Person-Robinson had previously been a teller-trainee at the bank and was familiar with the bank layout, procedures and the tellers who worked at the bank. Shortly before 7:30 a.m., Washington and Person-Robinson approached a teller in the parking lot when she got out of her car. Washington pointed a .32 caliber gun at the teller’s head and ordered her to unlock the door of the bank. The teller initially told Washington that she could not open the door but Washington told her he knew she was lying and threatened to “blow her head off,” if she didn’t unlock the door. The teller opened the door and after Washington and Person-Robinson entered the bank, the teller fled and called police.
Once inside the bank, Washington, using information provided by Person-Robinson, approached a second teller, calling her by name. Washington knew that the teller had access to the bank’s vault. Using the gun, Washington forced the teller to accompany him to the vault and ordered her to open the door, threatening that if she did not, she would never see her child, whom Washington called by name, again. The teller opened the vault door and Washington forced her to the floor at gunpoint. Washington removed the money from the vault, while Person-Robinson emptied the cash from the teller drawers. Washington and Person-Robinson then left the bank, carrying a canvas bag filled with $133,600, got into their car and attempted to flee. They were arrested a short time later. Officers recovered the cash stolen from the bank, the gun used during the robbery, and the hats and latex gloves worn by Washington and Person-Robinson during the robbery.
Person-Robinson, age 20, of Baltimore, pleaded guilty to her role in the bank robbery. Judge Bennett has scheduled her sentencing for October 22, 2014, at 3:00 p.m.
Washington and Person-Robinson remain in federal custody.
United States Attorney Rod J. Rosenstein commended the FBI and Baltimore County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Gregory R. Bockin and Judson T. Mihok, who prosecuted the case.
Armed Baltimore Robber Sentenced to 20 Years in Prison Robbed Eight 7-Eleven Stores in 18 DaysRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced John Robinson, age 34, of Baltimore, today to 20 years in prison followed by three years of supervised release for robbery and using a gun in furtherance of the robbery.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Baltimore City State’s Attorney Gregg L. Bernstein; Baltimore Police Commissioner Anthony W. Batts; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, from December 1 to 18, 2013, Robinson and a co-conspirator robbed eight 7-Eleven Stores using a loaded revolver. The stores were located in Baltimore on Boston Street, Holabird Avenue, West 33rd Street, Belair Road, Reisterstown Road, Harford Road, Frederick Road and Pulaski Highway. In each of the robberies, Robinson wore a mask and pointed the gun at the store employee, demanding money. Robinson or his co-conspirator, who was also masked, would take other items as well, such as cigarettes and lottery scratch-off tickets. On some occasions, Robinson would order the store employee to lie on the floor.
Co-defendant Bryant Smith, age 26, also of Baltimore, was charged by indictment with robbery and using a gun in furtherance of the robbery. Smith pleaded not guilty on October 25, 2013 and is scheduled for a re-arraignment on August 22, 2014.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department; Baltimore City State’s Attorney=s Office, Baltimore County Police Department and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Bonnie S. Greenberg, who prosecuted the case.
Anne Arundel County Cocaine Dealer Exiled to over 11 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Paul Rodney Cain, age 48, of Pasadena, Maryland, today to 135 months in prison followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Anne Arundel County Police Chief Kevin Davis; and Anne Arundel County State’s Attorney Anne Colt Leitess.
According to his plea agreement, from November 2012 through July 24, 2013, Cain conspired with Daryell Rexrode, Allan Ferdock, Julie Marie Gardner and others to distribute cocaine. On November 16, 2012, Rexrode was arrested in Baltimore upon arriving to accept a controlled delivery of a kilogram of cocaine that he intended to split with Cain.
In May 2013, law enforcement initiated wiretaps on two cell phones belonging to Cain and learned that Rexrode and Cain were building their inventory of cocaine. For example, between May 21 and 24, 2013, law enforcement overheard Cain agree to buy one kilogram of cocaine from Ferdock for $36,000. Law enforcement arrested Ferdock on May 24 after witnessing Ferdock purchase a kilogram of cocaine which he intended to re-sell to Cain. Law enforcement seized the cocaine.
Following Ferdock’s arrest, law enforcement intercepted many calls in which Rexrode and Cain, who did not believe that law enforcement had seized the cocaine, discuss confronting Ferdock about the cocaine that Ferdock had agreed to deliver. The conspirators devised a plan to have Cain take Rexrode’s brother to Ferdock’s residence to confront Ferdock.
On May 26, 2013, law enforcement intercepted a call in which Cain told Rexrode that he had just left Rexrode’s brother at Ferdock’s home. In the early morning hours of the next day, law enforcement arrested Rexrode’s brother on Ferdock’s property. At the time of his arrest, Rexrode’s brother was wearing latex gloves and carrying a mallet, a knife and a roll of duct tape.
On July 24, 2013, law enforcement executed a search warrant at a storage unit in Glen Burnie, Maryland, which was rented in Gardner’s name. Gardner was Cain’s girlfriend. Officers seized approximately one kilogram of cocaine from the storage unit.
Cain conspired to distribute more than five kilograms of cocaine.
Daryell M. Rexrode, Allan Clay Ferdock, both age 56, Julie Marie Gardner, age 36, all of Pasadena, previously pleaded guilty to their roles in the conspiracy. Rexrode was sentenced to 160 months in prison; Ferdock was sentenced to 51 months in prison; and Gardner was sentenced to 21 months in prison.
United States Attorney Rod J. Rosenstein commended the DEA, Anne Arundel Police Department and Anne Arundel County State’s Attorney=s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Peter J. Martinez and Christopher J. Romano, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Acting United States Attorney NamedRead the Press Release
INDIANAPOLIS – Josh J. Minkler, 51, has been named the Acting United States Attorney for the Southern District of Indiana. Minkler served as the First Assistant under former United States Attorney Joseph H. Hogsett and will now lead the federal prosecutor’s office.
In addition to serving as the First Assistant, Minkler was the Drug Unit Chief and served as an Assistant U.S. Attorney prosecuting drug, violent crime, and public corruption cases. He graduated from Indiana University School of Law, Bloomington, IN, in 1988, and earned a bachelor’s degree from Wabash in 1985.
Replacing Minkler as First Assistant U.S. Attorney is Joe H. Vaughn who previously served as the Criminal Chief.
31 July 2014
Washington, D.C. Man Pleads Guilty to Traveling to Maryland to Engage in Sexual Activity with A MinorRead the Press Release
Communicated With the Victim Through a Social Networking Site
Greenbelt, Maryland – Gregory King, age 28, of Washington, D.C. pleaded guilty today to traveling across state lines to engage in illicit sexual conduct with a 14 year old female and to using a computer to persuade, induce, entice and coerce the minor to engage in sexually explicit conduct.The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Chief Richard McLaughlin of the Laurel Police Department.
According to King’s plea agreement, on October 9, 2013, he initiated a chat with the victim, a 13 year old girl, on a social networking site. The girl advertised her age on her profile page as 13. During October and November 2013, King and the victim exchanged sexually explicit photographs and engaged in sexually explicit conversations. On October 30, 2013, King chatted with the victim about coming to her house in Maryland from Washington, D.C., telling the victim that he would take a bus to her house. The victim provided King with her address, but King was not able to get to the victim’s house that night. King continued to chat with the victim and on November 21, 2013, shortly after the victim’s 14th birthday, again discussed coming to the victim’s home. King took a bus from Washington, D.C. and met the victim at her home, where he spent the night. King was arrested on January 19, 2014.
As part of his plea agreement, King must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
King faces a maximum sentence of 30 years in prison for the traveling charge; a mandatory minimum of 10 years and up to life in prison, for using a computer to coerce a minor to engage in sexually explicit conduct; each followed by a minimum of five years and up to lifetime of supervised release. U.S. District Judge Peter J. Messitte has scheduled sentencing for October 15, 2014 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI and Laurel Police Department for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kristi N. O’Malley, who are prosecuting the case.
United States Attorney Announces Significant Sentence in Armed Bank RobberyRead the Press Release
Suspect shot at police officer four times
INDIANAPOLIS – Joseph H. Hogsett, United States Attorney, announced the sentence of Pascal S. Sylla, 46, of Anderson, today. Sylla was convicted of one count of attempted bank robbery and one count of use and discharge of a firearm during and in relation to a crime of violence. Sylla was sentenced to 35 years by United States District Judge Sarah Evans Barker.
“This case proves the diligence of our federal, state and local law enforcement officials,” said Hogsett. “But it also shows that many in our community who call for longer sentences for criminal activity aren’t paying attention to what we do in the United States Attorney’s Office. A thirty-five year sentence means that Mr. Sylla will never walk our streets again.”
On August 1, 2003, Sylla entered the Madison County Federal Credit Union on 53rd Street in Anderson, Indiana. As he entered he pulled out a chrome semi-automatic pistol and ordered the single customer and teller in view to get on the ground. The customer happened to be the Assistant Chief of Police for the Anderson Police Department, Ray Novak. Novak complied with Sylla’s demands but as Sylla went after the bank teller Novak drew a revolver from his ankle, announced he was police and told Sylla to give up.
Novak and Sylla exchanged gunfire. Sylla instructed the teller to get down and advised Novak he would give up. Instead, he took another shot at Novak, and both exited the bank, Sylla took another shot and then fled the scene. While blood samples were obtained from the scene, the case was unsolved until 2010, when the Anderson Police Department was notified that the DNA obtained at the crime scene matched that of a federal inmate. Sylla was serving time in Terre Haute Penitentiary for committing a 2005 bank robbery.
“This sentencing is the result of outstanding law enforcement cooperation between the FBI, Indiana State Police and the Anderson Police Department,” stated FBI Special Agent in Charge W. Jay Abbott.
Anderson Police Chief Larry Crenshaw said, “Today’s sentencing of Sylla is a reminder of the inherent dangers law enforcement officers face each day.”
According to Assistant United States Attorney Cynthia Ridgeway, who prosecuted the case for the government, Sylla faces three years of supervised release after serving his sentence.
Two Tighlman Island Fishermen Plead Guilty to Illegal Fish Harvesting in the Chesapeake BayRead the Press Release
Ship Captains Poached Hundreds of Thousands of Pounds of Striped Bass
Baltimore, Maryland – Michael D. Hayden, age 41, and William J. Lednum, age 42, both of Tilghman Island, Maryland, pleaded guilty today to conspiring to violate the Lacey Act and to defraud the United States through their illegal harvesting and sale of 185,925 pounds of striped bass.The plea agreements were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division Sam Hirsch; Colonel George F. Johnson IV, Superintendent of the Maryland Natural Resources Police; and Honora Gordon, Regional Special Agent in Charge for the U.S. Fish and Wildlife Service.
“These defendants admitted to systematically plundering the Chesapeake Bay of an important and protected natural resource, and at the expense of the many honest fishermen who play by the rules,” Acting Assistant Attorney General Hirsch said. “The Justice Department is committed to enforcing environmental laws that protect our shared natural resources and sustain the vital marine life of the Chesapeake Bay for future generations.”
According to their plea agreements, Hayden and Lednum were “captains” on fishing vessels owned by them, William J. Lednum Fisheries, d/b/a, Michael D. Hayden, Jr., and Michael D. Hayden, Jr., Inc. The defendants also employed numerous “helpers” as part of this scheme, including, co-defendant Kent Sadler.From at least 2007 to 2011, Hayden and Lednum illegally harvested, possessed, falsely labeled and/or sold at least 185,925 pounds of striped bass. They used illegally weighted and/or anchored gill nets, left the nets in the water overnight, and set the nets during times when the commercial striped bass gill-netting season was closed. The defendants exceeded their maximum daily vessel limit of striped bass and either unloaded the surplus onto an anchored vessel or paid others a fee to check-in fish for them. Hayden and Lednum falsified the permit allocation cards and daily catch records for their striped bass fishing trips to over-report the numbers of striped bass caught and under-report the weights. This allowed them to request additional state tags under false pretenses and therefore harvest additional striped bass illegally.
Hayden and Lednum shipped and sold the striped bass to wholesalers in New York, Pennsylvania, Delaware and Maryland in the total amount of $498,293.47. None of the fish was properly reported at check-in stations or on the permit allocation cards of daily catch records submitted to the State of Maryland. Maryland in turn submits such paperwork to numerous federal and interstate agencies responsible for setting harvest levels all along the eastern seaboard.
The investigation in this case started in February 2011 when the Maryland Department of Natural Resources found tens of thousands of pounds of striped bass snagged in illegal, anchored nets before the season officially reopened. The conspirators were seen on the water in the vicinity of the illegal nets. The subsequent investigation unveiled a wider criminal enterprise to which Hayden and Lednum pled guilty today. Co-defendant Kent Conley Sadler, age 31, also of Tilghman Island, previously pleaded guilty to his participation in the conspiracy and is scheduled to be sentenced on October 21, 2014.
Hayden and Lednum face a maximum sentence of five years in prison and a $250,000 fine. The defendants have agreed to pay restitution to the State of Maryland of between $498,293 and $929,625. The defendants have further agreed to forfeit the monetary equivalent of 80% of the value of the vessel primarily used during the conspiracy. U.S. District Judge Richard D. Bennett scheduled sentencing for Hayden and Lednum on November 4 and 5, 2014, respectively.
United States Attorney Rod J. Rosenstein praised the Maryland Department of Natural Resources and U.S. Fish and Wildlife Service for their work in the investigation. Mr. Rosenstein thanked Todd W. Gleason and Shennie Patel of the Department of Justice’s Environmental Crimes Section, and Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.Two Ronceverte Men Appear in Federal Court in BeckleyRead the Press Release
Beckley, W.Va. – United States Attorney Booth Goodwin announced today that two Ronceverte men appeared in federal court in Beckley before the Honorable Irene C. Berger. Jeffrey S. Walton, 48, was sentenced to 10 months in prison for abusive sexual contact with a female federal inmate. Walton pled guilty in April of 2014, admitting that in May or June of 2013, he touched the breasts of an inmate at the Federal Prison Camp at Alderson. At the time of the incident, Walton was employed by the Federal Bureau of Prisons and was acting as the inmate’s work supervisor. Walton is no longer a Bureau of Prisons employee. The case was investigated by the Bureau of Prisons and the Federal Bureau of Investigation.
Adam Ray Smith, 26, pled guilty to distribution of heroin. Smith admitted that on August 30, 2013, he distributed heroin to a person cooperating with law enforcement authorities. The transaction took place near Ronceverte. Smith further admitted that he distributed about 1000 packets of heroin, totaling about 48 grams, in Greenbrier County between May 2013 and August 2013. Smith faces up to 20 years in prison and a $1,000,000 fine when he is sentenced on November 13, 2014. This case was investigated by the Greenbrier Valley Drug and Violent Crime Task Force under the Greenbrier County Heroin and Pill Initiative. That initiative is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the sale of heroin and the illicit sale of prescription drugs in communities across the Southern District. Assistant United States Attorney John File handled both cases.
Two Leaders of A Burglary Crew Sentenced to PrisonRead the Press Release
Robbed 13 Banks, Credit Unions and Retail Stores of at Least $250,000
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Aaron Thelbit Davis, age 39, of Baltimore today to five years in prison followed by three years of supervised release for bank larceny, in connection with a two year scheme to burglarize banks, credit unions and retail stores. Judge Bennett sentenced co-defendant Kenneth Alexander Manns, age 48, of Baltimore, yesterday to four years in prison, followed by three years of supervised release, for bank burglary. Judge Bennett also entered orders requiring that the defendants each pay $250,000 in restitution.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Chief James W. Johnson of the Baltimore County Police Department; Baltimore County State’s Attorney Scott Shellenberger; and Chief Cathy L. Lanier of the Metropolitan Police Department.
According to their plea agreements, from May 2011 through May 2013, Davis and Manns conspired with a group of associates, including Donald Taylor, to steal money and property from 13 banks, credit unions and retail stores.In order to avoid apprehension, the burglary crew would case the target location and assess the likelihood of obtaining valuables. One or more conspirators would stand as a look-out while others went inside gas stations, convenience stores, credit unions and other businesses in Maryland and Washington D.C., wearing either white paper suits or dark outfits, and masks and gloves, while communicating with handheld radios. The burglary crew would cut power and telephone lines, cables and other wires, and destroy, reposition or disconnect surveillance video cameras. They stole cash, safes, cash-register drawers and lock boxes. On several occasions, the burglary crew gained entry to the ATM room of the target location by carving a hole with a power saw from an adjacent retail space. They transported the stolen goods to their homes and businesses in Maryland.
For example, on March 19, 2011, Davis and Manns donned paper suits and black masks and forcibly gained entry to the ATM room of the Tower Federal Credit Union on Baltimore National Pike in Normandy Shopping Center in Ellicott City, Maryland, by cutting through the adjoining retail business. They waited for approximately one hour before entering the credit union’s ATM room, where they tried unsuccessfully to pry open the rear door of the ATM machine.
On August 17, 2012, Davis and Manns wore white paper Tyvek suits, black masks and gloves, and entered an ATM room of a bank in Washington, D.C. by carving a hole with a power saw from an adjacent retail space. When the Metropolitan Police responded to alarms, Davis and Manns fled before gaining access to the cash drawer of the ATM machine.
On April 28, 2013, shortly before midnight, Davis and Manns broke a glass window to the Edmondson Sunoco station in Catonsville, Maryland, and severed phone, cable and alarm power lines inside. Taylor served as a lookout from inside a van rented by Manns and parked nearby. After going behind the cashier area, Davis and Manns left and drove away from the gas station in a stolen U-Haul Ford van. Over an hour later, they returned, attempted to enter the manager’s office and then left the gas station again. At approximately 3:15 a.m., Manns and Davis returned to the gas station a third time, stole $200 from the cash register drawer and removed two store safes containing $10,080, while Taylor again served as a look-out. They loaded the safes into the stolen U-Haul van and drove away, while Taylor followed them in the van.
Donald Taylor, age 56, also of Baltimore, pleaded guilty to his role in the scheme on April 3, 2014.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland State Police, Baltimore County Police Department, Baltimore County State’s Attorney’s Office and the Metropolitan Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Mark W. Crooks, who is prosecuting the case.
Two Delta Men Arrested on Gun Charges in Connection to Wildlife PoachingRead the Press Release
DENVER – Two Delta men were arrested this morning by federal agents and state and local law enforcement officers on gun charges, U.S. Attorney John Walsh and ATF Special Agent in Charge Luke Franey announced. Brandon C. Cook, age 30, and Jonathan M. Boyd, age 29, both of Delta, were arrested without incident. They were then taken to the U.S. District Courthouse in Grand Junction where they made their initial appearance before U.S. Magistrate Judge Gordon P. Gallagher. During the court appearance both defendants were advised of their rights as well as the charges pending against them. Both Cook and Boyd were then released on bond. They are due back in U.S. District Court in Grand Junction on Monday, August 4, 2014 at 4:00 p.m.
According to the indictment, obtained by a federal grand jury in Grand Junction on May 27, 2014, Boyd knowingly provided a Weatherby model Mark V, .270 caliber rifle to Cook, knowing and having reasonable cause to know that Cook had been convicted of a felony crime punishable by a term of imprisonment of a year or more. The indictment further alleges that Cook possessed the rifle in violation of federal law as he had a prior felony conviction.
Cook allegedly used the rifle purchased in this case for him by Boyd for poaching. Cook has been charged and has pled guilty in state court to the felony charge of willful destruction of wildlife on a trophy class bull elk.
“Felons who are prohibited from owning firearms sometimes put others up to purchasing guns illegally for them,” said U.S. Attorney John Walsh. “Make no mistake, serving as a gun buyer for a felon is a felony as well. The hard work of ATF and Colorado Parks and Wildlife, with the assistance of the community, has stopped this crime in its tracks, and, we expect, prevented future poaching as well.”
“We cannot underscore the tremendous assistance of the public in calling our attention to the sheer quantity of wildlife and firearms violations in the Delta, Montrose and Olathe communities,” said Renzo DelPiccolo, Montrose Area Wildlife Manager. “We greatly appreciate the ATF, U.S. Marshals and U.S. Attorney’s Office in pursing the federal firearms violations associated with this case.”
Cook faces not more than 10 years in federal prison, and up to a $250,000 fine for being a felon in possession of a firearm. Boyd faces not more than 10 years in federal prison, and up to a $250,000 fine for unlawfully transferring a firearm to a known convicted felon.
This case was investigated by the State of Colorado Department of Natural Resources Parks and Wildlife Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Cook was apprehended by the U.S. Marshals Service Fugitive Task Force, with assistance from the FBI and U.S. Forest Service.
The defendants are being prosecuted by Assistant U.S. Attorney Michelle Heldmyer of the U.S. Attorney’s Grand Junction branch office.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Substitute Teacher and Camp Counselor Sentenced for Distributing Child PornographyRead the Press Release
BOSTON – A former substitute teacher and camp counselor was sentenced today for the distribution and possession of child pornography.
Bryce Garner, 23, of East Sandwich, was sentenced by U.S. District Judge Patti B. Saris to seven years in prison to be followed by eight years of supervised release. Upon release, Garner must register as a sex offender.
Garner, who was previously employed as a substitute teacher, camp counselor and overnight babysitter/nanny, pleaded guilty in April 2014 to seven counts of distribution of child pornography and to possession of child pornography.
On Feb. 27, 2013, a federal agent in Oklahoma City conducting an on-line undercover investigation, observed Garner sharing 37 files with names consistent with child pornography. The images in the files depicted the sexual abuse of minor boys.
Agents later discovered that Garner was in possession of more than 2,300 images and more than 1,100 videos depicting the sexual abuse of children, as well as a substantial collection of child erotica. Garner used various on-line programs to find, download and share these images and videos. He was a prolific trader on these platforms, often sending child pornography unsolicited, being insistent about trading, and explicitly sending these images and videos in order to gain child pornography in return. The images and videos depict minors engaged in sexually explicit conduct and were labeled with explicit names reflecting their content.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in
Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. The case was prosecuted by Assistant U.S. Attorney Stacy Dawson Belf of Ortiz’s Major Crimes Unit.Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Staten Island Woman Admits Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. - A Staten Island, New York, woman today admitted her role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, in which more than 8,000 fraudulent U.S. income tax returns sought more than $65 million in tax refunds and resulted in losses to the United States of more than $12 million, U.S. Attorney Paul J. Fishman announced.
Elian Matlovsky, 29, pleaded guilty today before U.S. District Judge Claire C. Cecchi to an information charging her with one count of conspiracy to defraud the United States and one count of theft of government property.
According to documents filed in this case and statements made in court:
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States 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.
- SIRF perpetrators complete Form 1040 Individual Income Tax Returns 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 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due.
- Perpetrators direct the U.S. Treasury Department to issue the refunds through checks generated by the fraudulent 1040 forms to locations they control or can access.
- With checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell refund checks at a discount to face value. In turn, the buyers then cash the checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses or by depositing checks into bank accounts. When cashing or depositing checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
The Investigation
Federal law enforcement agencies 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 (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, revealed that from at least 2007, dozens of individuals in the New Jersey and New York area have been engaged in a large-scale, long-running SIRF scheme that caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with more than $12 million in losses to the U.S. Treasury.
Matlovsky and others obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fraudulent 1040 forms, 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 the electronically-filed 1040s, law enforcement officers learned that just a handful of IP addresses created many of the fraudulent 1040 forms that lead to the issuance of tax refund checks.
Conspirators purchased mail routes, that is, lists of addresses covered by a single mail carrier. Conspirators applied for refunds, inserted addresses along the mail route as the purported home addresses of the “taxpayers,” and obtained the refund checks sent to the addresses. They also applied for checks using addresses otherwise controlled by, or accessible by, certain conspirators and collected the checks after they were delivered to those addresses. During the course of the scheme, hundreds of refund checks were mailed to just a few different addresses in a few different towns, including Nutley, Somerset and Newark, New Jersey, and Shirley, New York.
Matlovsky and others then deposited and cashed the checks. The conspirators used several methods, but Matlovsky opened several bank accounts, into which she deposited nearly $1 million in Tax Refund Treasury Checks. Once the Tax Refund Treasury Checks were deposited into Matlovsky’s accounts, she and others caused proceeds of the fraud to be withdrawn, and spent those funds.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in refund checks – that had been applied for fraudulently – before they were delivered to members of the conspiracy.
The conspiracy count carries a maximum potential penalty of five years in prison and up to a $250,000 fine. The substantive count of theft of government property carries a maximum potential penalty of 10 years in prison and up to a $250,000 fine. The theft of mail by a postal employee carries a maximum potential penalty of five years in prison and up to a $250,000 fine. Sentencing is scheduled for Nov. 18, 2014.
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 Special Agent in Charge Carl Kotowski, for the investigation.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker, Lakshmi Srinavasan Herman, Zach Intrater, and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.14-276
Defense Counsel: Henry E. Klingeman Esq., Newark, New Jersey
Matlovsky, Elian Information
Springfield Man Sentenced for Scheme to Sell Thousands of Counterfeit DVDsRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Springfield, Mo., man has been sentenced in federal court for a scheme to sell thousands of counterfeit DVDs over the Internet.
Matthew Cerullo, 42, of Springfield, was sentenced by U.S. District Judge Greg Kays on Wednesday, July 30, 2014, to one year and one month in federal prison without parole. The court also ordered Cerullo to forfeit to the government a desktop computer, a laptop computer, various computer media, two cameras, an iPhone, two additional cell phones, 15 gold coins, 240 silver coins, four baseball cards, all of the counterfeit DVDs and $5,300, all of which was used to commit the offenses or was obtained from the proceeds of the offenses.
Cerullo pleaded guilty on Oct. 28, 2013, to mail fraud, trafficking in counterfeit labels, trafficking in counterfeit goods and making false statements to federal agents.
Based on records obtained from the U.S. Postal Service, the United Parcel Service (UPS), DHL, EBay and Amazon.com, federal agents determined that Cerullo purchased and received more than 22,000 counterfeit DVDs from a distributor in Hong Kong, China between Feb. 13, 2013 and Sept. 10, 2013.
According to court documents, the federal investigation began when a shipment of counterfeit DVDs from Hong Kong was seized by Customs and Border Protection agents at JFK Airport. The counterfeit DVDs were being shipped to a UPS store located in Springfield under the name of a business owned by Cerullo.
Federal agents interviewed Cerullo at his residence on May 2, 2013. Cerullo told agents that he had not receive a seizure notice from Customs and Border Protection. Cerullo also told agents that he orders toys and jewelry from China to resell on EBay or to local venders, but does not buy DVDs. Cerullo claimed that he owns only one business, C3 Wholesale, LLC.
During the course of the investigation, however, agents learned that Cerullo’s statement contained false and fraudulent information that was designed to mislead them and their investigation. Agents determined that Cerullo had in fact received four prior seizure notices from Customers and Border Protection; these notices were discovered in his desk during the execution of a search warrant at his residence. Agents also learned that Cerullo owned, operated and sold counterfeit DVDs through four different businesses: C3 Wholesale, LLC; EJC Supply, LLC; Midwest Wholesale and Capital Sierra, LLC; and EJC Supply Company.
On Sept. 3, 2013, agents observed Cerullo mail a large quantity of packages at a local post office. Postal Inspectors inspected the contents of these packages and discovered that Cerullo had mailed 165 packages of counterfeit DVDs to various individuals around the country. Inspectors also noted that the return address on each package was fictitious.
The next day, federal agents executed a search warrant on Cerullo’s residence and a storage locker that Cerullo rented. Agents discovered nearly 23,000 counterfeit DVDs between those locations.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).Six Defendants Charged in Separate Fraud Schemes to Obtain $2.7 Million in Mortgages, Student Aid, Bank and Small Business LoansRead the Press Release
CHICAGO — Six defendants are facing federal fraud charges involving separate schemes to obtain a total of more than $2.7 million through fraudulent statements in loan applications submitted to banks, mortgage lenders, several community colleges, the U.S. Department of Education, and the Small Business Administration since 2006. Five of the defendants were indicted together yesterday for scheming to fraudulently obtain more than $2.4 million. The sixth defendant, who alone was arrested today, was indicted separately for allegedly scheming to fraudulently obtain an additional $300,000 in mortgage fraud and student loan fraud. Both indictments stem from the same investigation of fraudulent loan applications.
In an alleged mortgage fraud scheme, three of the five defendants ― ANTHONY TRICE, then president of Fifty One 06 Property Management and Acquisitions, Inc., JERROD L. WEATHERSBY, a director and vice president of the defunct company, and NOREEN B. MIAN, then a licensed loan officer for Exclusive Bancorp., Inc., in Lincolnwood ― were charged with scheming with others between 2006 and 2011 to fraudulently obtain more than $2.1 million in mortgage loans for 14 properties in Chicago and suburban Burnham and Park Forest. According to the indictment, Trice, 34,of Chicago; Weathersby, 36, of Harvey; and Mian, 34, of Chicago, prepared and submitted false documents and made false statements to lenders about the buyers’ qualifications for the loans. Trice also allegedly made false statements in requests for loan modifications related to two of the properties.
In an alleged student loan fraud scheme between 2010 and 2012, Trice and Weathersby, together with WARREN K. TAYLOR, 35, and DAVID N. EDWARDS, 37, both of Chicago, were charged with fraudulently seeking to obtain approximately $240,000, and successfully obtaining approximately $135,000 by submitting at least 40 fraudulent applications for admission and federal student aid from Harper College, Elgin Community College, and Joliet Junior College. According to the indictment, the defendants knew that the applicants — some of whose identities were acquired by Trice and Weathersby in connection with an earlier credit card fraud scheme — had not agreed to be enrolled in college, were ineligible for financial aid, and did not intend to use the financial aid funds for educational purposes. The defendants allegedly caused the financial aid checks to be sent to certain addresses in Chicago and Park Forest, and that they then cashed the checks and used the proceeds for themselves and others.
In an alleged credit card fraud scheme between 2006 and 2008, Trice and Weathersby were charged with obtaining individuals’ personal identifying information by promising to help them improve their credit ratings and obtain money. According to the indictment, Trice and Weathersby then made false statements in applications for lines of credit and credit card accounts and, without the consent of the applicants, withdrew more than $145,000 from the lines of credit and credit card accounts. During the same time, they also allegedly fraudulently obtained a $35,000 bank loan, which was guaranteed by the Small Business Administration, and used the proceeds for personal purposes.
Trice was charged with six counts of mail fraud, five counts of wire fraud, three counts of bank fraud, and one count each of making false statements on loan applications, student loan fraud, and aggravated identity theft. Weathersby was charged with one count each of wire fraud and aggravated identity theft. Taylor was charged with four counts of mail fraud and one count each of aggravated identity theft and student loan fraud. Mian was charged with two counts of wire fraud and one count of making false loan application statements, and Edwards was charged with one count each of mail fraud and student loan fraud.
The indictment also seeks forfeiture of more than $2.41 million from Trice, Taylor, Mian, and Edwards. All five defendants will be arraigned on later date to be determined in U.S. District Court and an arrest warrant was issued for Edwards alone.
In a separate indictment, DERREK L. CAMPBELL, II, 34, of Chicago, was charged with two counts of making false loan application statements and one count each of wire fraud and student loan fraud for allegedly obtaining more than $300,000 through false statements to mortgage lenders between 2009 and 2013 in connection with purchasing two properties in 2009, obtaining federal student aid in 2011, and seeking a loan modification on one of the properties in 2013. The indictment also seeks forfeiture of $302,420.
Campbell was arrested today and was scheduled to be arraigned this afternoon in Federal Court.
Each count of bank fraud, wire fraud affecting a financial institution, and making false loan application statements carries a maximum sentence of 30 years in prison and a $1 million fine; each count of mail fraud carries a maximum sentence of 20 years in prison and a $250,000 fine, and student loan fraud carries a maximum of five years in prison and a $250,000 fine. Aggravated identity theft carries a mandatory sentence of two years in prison consecutive to any other sentence and a $250,000 fine.
The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, together with officials of the U.S. Department of Education Office of Inspector General, the U.S. Small Business Administration, and the Federal Housing Finance Agency.
The government is represented by Assistant U.S. Attorney Christopher R. McFadden.
An indictment contains only charges and is 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.
Trice Complaint
Campbell ComplaintSentencing for July 31, 2014Read the Press Release
Therra Elsner, 32, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on July 30, 2014, on one count of passing counterfeit obligations of the United States of America and one count of passing counterfeit obligations of the United States and aiding and abetting. Elsner was arrested in Cheyenne, Wyoming. She received 33 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $200.00 special assessment and restitution in the amount of $190.00. This case was investigated by the U.S. Secret Service.
San Diego Realtor Pleads Guilty to Sex with 13-year-old GirlRead the Press Release
SAN DIEGO – San Diego realtor Michael E. Lustig pleaded guilty in federal court today to prostitution-related crimes, admitting that he paid for sex with a 13-year-old girl on several occasions.
Lustig, who was indicted by a federal grand jury in October of 2013, entered his plea before U.S. Magistrate Judge Mitchell D. Dembin. Sentencing was set for November 3, 2014, at 9 a.m. before U.S. District Judge Roger T. Benitez.
According to court records, Lustig, 70, was first contacted in June of 2012 by San Diego Sheriff's deputies during an operation targeting customers of prostitution in the Encinitas area. At the time that Lustig was arrested, deputies seized two cellular telephones which led to information that he had been in contact with two minor females.
Interviews with the minors revealed that Lustig had contacted them separately to engage in commercial sex activity. One of the minors was 11 years old at the time that sexual activity began with Lustig, and the other was 13 years of age. According to court records, surveillance video from a motel in El Cajon, California, showed Lustig entering a motel room with one of the minors and emerging 43 minutes later.
According to court records, Lustig had contacted the minors multiple times over a span of multiple months. Interviews with the minors confirmed that Lustig, known to them as “George,” had paid them for sexual activity and that at least one of the minors had identified herself as a minor.
In the plea agreement, Lustig admitted that he used a cellular telephone to contact the 13-year-old minor on multiple occasions between at least October 2011 and June 2012, seeking to engage in commercial sex activity. Lustig admitted that he thereafter engaged in commercial sex activity with the minor, paying the minor in return for sexual activity.
For example, according to the plea agreement, Lustig admitted that on October 15, 2011, he wrote the minor, asking, “Hey, is the bookstore open? I'm in desperate need of books rite now.” Lustig admitted in court that he was using code for commercial sex activity. On November 11, 2011, Lustig wrote the same minor, “U free sometime in the next 2 hours?” and “Any chance for library in 35 min, @ 7:15?”
Lustig again admitted that he used code to recruit the minor for commercial sex activity. On June 8, 2012, Lustig wrote the minor simply “Bookstore?” meaning that he wanted to establish a date for commercial sex activity.
“The United States will vigorously pursue any adult preying on children for sexual activity,” said U.S. Attorney Laura Duffy. “Defendants like Michael Lustig victimize the most vulnerable population in our community – children - and these predators will be brought to justice.”
“A predator is off our streets today and can't victimize the innocents," said Sheriff Bill Gore. “This investigation showcases the success of collaborative federal and local investigations working toward the common good.”
FBI Special Agent in Charge, Daphne Hearn, commented, “The average age of a child targeted for prostitution is between the ages of 12 to 14 for girls and 11 to 13 for boys. As a result, the FBI will remain vigilant and continue our efforts to protect our nation's children from sexual predators by working with our law enforcement partners and removing these individuals from society through the justice system.”
On October 23, 2013, a federal grand jury returned a two-count indictment charging Lustig with two counts of sex trafficking of a minor in violation of 18 U.S.C. § 1591, and criminal forfeiture.
DEFENDANT Case Number: Michael Lustig Age: 70 San Diego, California CHARGESThree counts of Interstate Travel in Aid of Racketeering Enterprises, in violation of 18 USC 1952(a) Maximum Penalty: Five years per count, 15 years total; 3 years supervised release.
INVESTIGATING AGENCYSan Diego County Sheriff’s Department
Federal Bureau of Investigation*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Rutland Man Agrees to Plead Guilty to Heroin ConspiracyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Nicholas Louras, 28, of Rutland, Vermont, has been charged in federal court with conspiring to distribute heroin in Vermont from November 2013 to March 2014. Louras appeared today before Magistrate Judge John Conroy in United States District Court for his arraignment and was released on conditions, including that he participate in a drug rehabilitation program as directed by the Probation Office.
The parties also filed today a plea agreement in which Louras agreed to waive indictment and plead guilty to the felony drug conspiracy, which carries a maximum possible term of imprisonment of twenty years. Under the terms of the plea agreement the Court will decide his sentence after a presentence investigation. A change of plea hearing will likely be scheduled in the near future.
The United States is represented by Assistant U.S. Attorney Joseph Perella and the defendant is represented by Natasha Sen, Esq. This matter was investigated jointly by the Vermont State Police Drug Task Force, the FBI, the DEA, and the New York State Police.Roseville Financial Advisor Sentenced to 46 Months in Prison for Stealing from Her ClientsRead the Press Release
SACRAMENTO, Calif. — Michelle Lee Kern, 36, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 46 months in prison and ordered to pay $642,625 in restitution for financial advisor fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kern worked as a licensed financial advisor at Ameriprise Financial Services Inc. in Roseville between 2009 and December 2012. While working as a financial advisor, Kern stole $642,625 from approximately 20 clients by making wire transfers from client accounts to Kern’s own bank accounts and credit cards. Kern also forged client signatures on checks. According to victim statements read in court, Kern’s theft made it difficult for some victims to retire, support disabled children, and pay for college.
“Kern abused her role as a trusted, licensed financial advisor to defraud her clients for personal gain. Her actions clearly demonstrated disregard for the perilous financial situation her clients ultimately faced when they became victims of the fraud,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation. “Investigation and prosecution of financial fraud is a top priority for the FBI, particularly such that is committed by those entrusted to safeguard funds.”
While awaiting sentencing in this case, Kern was charged in Placer County with embezzling from her church. That case is pending, and Kern is presumed innocent of those charges, unless and until proven guilty.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michael D. Anderson prosecuted the case.
Kern was ordered to turn herself in to the Bureau of Prisons on September 11, 2014, to begin serving her sentence.
Romanians Will Be Deported Following Today's Sentencing for ATM Skimming SchemeRead the Press Release
PITTSBURGH - Two Romanians residing in Allegheny County, Pennsylvania, have been sentenced in federal court to time-served on their conviction of conspiracy, United States Attorney David J. Hickton announced today.
United States District Judge Mark Hornak imposed the sentence on Florin Popescu, 31, and Ion Carligeriu, 30, both Romanian Nationals, who have been in custody since approximately Oct. 15, 2013, following their arrest. Both defendants will be immediately deported to Romania by Immigration and Customs Enforcement Operations.
According to the information presented to the court, the defendants conspired to produce ATM skimming equipment which they installed on APC kiosks at Postal Centers on McKnight Road and in Squirrel Hill, which were designed to steal customers’ bank account information.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Postal Inspection Service, the United States Secret Service and the U.S. Department of Homeland Security Investigations for the investigation leading to the successful prosecution of these defendants.
Rio Rancho Man Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Armando Camarena, 31, of Rio Rancho, N.M., was arrested yesterday by agents of Homeland Security Investigations (HSI) on federal child pornography charges. Camarena made his initial appearance in federal court earlier today, and remains in custody pending a detention hearing scheduled for tomorrow morning.
Camarena is charged in a criminal complaint with distributing and possessing visual depictions of minors engaged in sexually explicit conduct. According to the criminal complaint, HSI initiated the investigation leading to Camarena’s arrest after receiving a lead from HSI in Idaho Falls, Idaho. HSI-Idaho reported that a 14-year-old girl had received child pornography, child erotica and threatening messages on her iPod from an individual the child met through an Internet website. Investigation revealed that the child pornography and threats were sent from an IP Address allegedly being used by Camarena.
On July 30, 2014, officers from HSI and the Albuquerque Police Department (APD) executed a federal search warrant at Camarena’s residence and seized computer images allegedly consistent with child pornography. Camarena was taken into custody at that time.
If convicted of the charges in the criminal complaint, Camarena faces a federal prison term of not less than five years and not more than 20 years. Camarena also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by SPEED, the Sexual Predator and Exploitation Enforcement Detail, which is comprised of officers from HSI-Albuquerque office, APD and the Bernalillo County Sheriff’s Office, with assistance from HSI-Idaho and the Idaho Fusion Center.
The case is being prosecuted by Assistant U.S. Attorney Jacob A. Wishard as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The case also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.
Raymond Brown Sentenced to 48 Months in Prison for Use of A Communication Facility to Facilitate A Federal Drug CrimeRead the Press Release
St. Thomas, USVI - District Court Judge Curtis V. Gomez today sentenced Raymond Brown to 48 months in prison for use of a communication facility to facilitate a federal drug crime, United States Attorney Ronald W. Sharpe announced.
Brown, 29, was arrested on July 17, 2013, as part of the investigation of Roberto Tapia, Director of the Virgin Islands Department of Planning and Natural Resources (DPNR) Division of Environmental Enforcement and charged on November 7, 2013, in a 69-count third superseding indictment, along with seven other defendants, including Angelo Hill, Hector Alcenio, Angel Negron-Betran, and Eddie Lopez-Lopez, Stephen Torres, Walter Hill, and Edwin Monsanto. On March 27, 2014, Brown was found guilty by a St. Thomas jury to one count of use of a communication facility to facilitate a federal drug crime.
Evidence introduced at trial showed that on December 2, 2012 Brown spoke to Roberto Tapia on a cellular telephone to arrange the distribution and transportation of two kilograms of cocaine. The evidence further showed that Roberto Tapia then transported the cocaine from St. Thomas to a buyer in Puerto Rico.
The case was investigated by the Public Corruption Task Force, which comprises the Federal Bureau of Investigation (FBI); U.S. Drug Enforcement Administration (DEA); Virgin Islands Police Department; U.S. Marshals Service; Internal Revenue Service Criminal Investigation Division (IRS-CI); U.S. Department of Homeland Security, Homeland Security Investigations (HSI); U.S. Customs and Border Protection (CBP); United States Coast Guard; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Office of the Virgin Islands Inspector General. Assistant U.S. Attorney Kelly B. Lake prosecuted the case.
Polk County Methamphetamine Trafficker Sentenced to 14 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez-Covington today sentenced Maximilano Reynoso (39, Winter Haven) to 14 years in federal prison for conspiring with others to distribute 500 grams or more of methamphetamine. Reynoso pleaded guilty on March 4, 2014.
According to court documents, court-authorized wire and electronic intercepts of Reynoso’s cellular phones showed that he was in direct contact with methamphetamine sources of supply in Mexico. Reynoso ordered large quantities of high-purity methamphetamine from Mexico, and supervised couriers who distributed the drugs in Polk County. Reynoso also coordinated the transfer of drug proceeds from Polk County to Mexico. Reynoso’s co-defendant, Gerardo Millian (29, Auburndale), was sentenced to 77 months in federal prison on April 24, 2014. During the investigation, Homeland Security Investigations agents and Polk County deputies made numerous seizures, including one kilogram of methamphetamine shipped via Federal Express from Manzanillo, Mexico to a residence in Polk County, 200 grams of methamphetamine from a residence in Auburndale, 4 kilograms of methamphetamine from a vehicle on Interstate 4 in Polk County, and 40 kilograms of methamphetamine from a residence on Kristen Park Drive, in Orlando.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Polk County Sheriff’s Office as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Christopher F. Murray.
Policeman Indicted for Aiding and Abetting A Conspiracy to Possess with Intent to Distribute Marijuana and for ExtortionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Filed Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), announce the indictment of Roderick Silva, 45, of Miami, a police officer who formerly served as a detective assigned to the MDPD Narcotics Bureau. The indictment charges Silva with one count of aiding and abetting a conspiracy to possess with intent to distribute marijuana in violation of Title 21, United States Code, Section 846, and one of count of extortion in violation of Title 18, United States Code, Section 1951. .
The conspiracy charge against Officer Silva alleges that he aided and abetted a group of persons who were illegally growing hydroponic marijuana in numerous homes that they owned, rented, or otherwise controlled, in the south west Miami-Dade County area. The conspiracy charge further identified this group of persons as members of the Santiesteban family, and their friends and associates. The Santiesteban family members, and a number of their friends and associates, have already been convicted in a federal prosecution brought against them in 2012 for conspiracy to possess with intent to distribute over 1000 marijuana plants. They pled guilty to that charge in 2013, and are serving long prison sentences.
The conspiracy charge also alleges that Officer Silva aided and abetted the Santiesteban family members, and their friends and associates, in their marijuana growing activities by providing them with confidential MDPD information about when MDPD narcotics detectives were investigating them, and when they might have their marijuana grow houses searched, and their marijuana plants seized; and by providing advice to the Santiestebans and their friends and associates about how to avoid, deflect, frustrate, and obstruct those MDPD investigations and by providing confidential MDPD information about suspected grow houses operated by other marijuana growers, so the Santiestebans and their friends and associates could rob those grow houses of their marijuana plants.
The extortion count of the indictment charges that Officer Silva obtained money from Santiesteban family members, “under color of official right.” It specifies that Officer Silva received $1500 cash on January 5, 2011, in Miami-Dade County for “maintaining his silence and not disclosing to any law enforcement authorities all that he knew about the illegal, criminal activities of the Santiesteban family members.”
U.S. Attorney Wifredo A. Ferrer stated, “We are especially saddened when a public servant misuses his position of trust to engage in criminal conduct. Mr. Silva’s criminal conduct not only undermined the trust of this community, but also undermined the trust of the officers who served by his side. Today’s indictment sends a message to all public officials who commit crime that they are not above the law and that they will be brought to justice.”
“Mr. Silva’s actions undermines the public’s trust in law enforcement, as well as betrays the officers and agents who worked by his side” said Special Agent in Charge George L. Piro of the FBI’s Miami Division. “Silva must now face the consequences of his actions in large part due to the dedication and commitment of the Miami Dade Police Department and the FBI.”
Director J.D. Patterson stated, “The community’s trust is vital to us and make no mistake, the Miami-Dade Police Department remains committed in seeking out, identifying, and ridding itself of individuals who violate that trust. This violation of trust tarnishes the badge of every hard-working officer who risks his/her life daily to protect this community. We appreciate the partnership and support of our federal partners during this sensitive investigation.”
If convicted, Officer Silva faces a minimum mandatory sentence of 10 years in prison up to life in prison on the aiding and abetting a conspiracy count and up to 20 years in prison on the extortion count.
An indictment is only an accusation and each defendant is presumed innocent unless and until proven guilty.
Mr. Ferrer commended the investigative efforts of FBI and MDPD. This case is being prosecuted by Assistant U.S. Attorneys Michael P. Sullivan and Andy Camacho.
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.
Placerville Man Pleads Guilty to Filing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. —Thomas W. Stringfellow, 55, of Placerville, pleaded guilty today to two counts of willfully making false tax returns, United States Attorney Benjamin B. Wagner announced.
According to court documents, from 2006 through 2010, Stringfellow underreported his business income on tax returns by more than $1.1 million, and underreported his personal income on tax returns by more than $1 million. Stringfellow owned New Horizon Painting, and rather than depositing all of the business checks into the appropriate accounts, he cashed some of the checks and did not report those amounts as income. In total, Stringfellow’s underreporting of his business income and his personal income led to a tax loss of more than $687,000.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Jean M. Hobler is prosecuting the case.
Stringfellow is scheduled to be sentenced by Judge Morrison C. England Jr. on December 18, 2014. Stringfellow faces a maximum statutory penalty of three years in prison and a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Pinedale, N.M., Man Sentenced for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Ramsey Litzin, 20, an enrolled member of the Navajo Nation who resides in Pinedale, N.M., was sentenced this morning for his involuntary manslaughter conviction. Litzin will serve 18 months in federal prison followed by three years of supervised release.
Litzin was arrested on Nov. 15, 2013, on a criminal complaint alleging that he killed a 27-year-old Navajo man by stabbing him to death in the early hours of Nov. 12, 2013, in Pinedale, N.M., which is located within the Navajo Indian Reservation in McKinley County, N.M. Litzin was intoxicated when he killed the victim during a physical altercation between the two men.
On April 24, 2014, Litzin pleaded guilty to an involuntary manslaughter charge and admitted killing the victim by stabbing him with a knife. According to the plea agreement, Litzin armed himself with a knife prior to a physical fight with the victim and stabbed the victim approximately 23 times with the intention of causing the victim to sustain serious bodily injury and knowing his actions could result in the victim’s death. Although most of the stab wounds were superficial, at least three stab wounds contributed to the victim’s death. Litzin stated that he was angry, intoxicated and had been struck by the victim when he stabbed the victim to death.
The case was investigated by the Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
Pennsylvania Woman Sentenced to 42 Months for Role in $1.8 Million Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Stephanie Patterson, age 41, of Royersford, Pennsylvania, was sentenced yesterday by the Honorable Leonard P. Stark, Chief Judge for the United States District Court for the District of Delaware, to 42 months imprisonment and full restitution. Earlier this year, Patterson pled guilty to violations of 18 USC § 286 (False Claims Conspiracy), 18 USC § 1341 (Mail Fraud), and 42 U.S.C. § 408(a)(7)(B) & 18 U.S.C. § 2 (Aiding and Abetting Social Security Fraud) in connection with her use of stolen identities in a tax fraud conspiracy.
The defendant participated in a tax fraud conspiracy involving the filing of more than 180 false individual federal income tax returns with the Internal Revenue Service, using stolen identities. The returns sought refunds of more than $1.8 million. The defendant and her co-conspirators received more than $800,000 in refunds to which they were not entitled,on account of the fraudulently filed returns. Among other things, the scheme jeopardized the Social Security Disability benefits of at least some of the identity theft victims. The defendant’s role in the conspiracy involved providing names and social security numbers to another co-conspirator, who used the information to file the fraudulent returns. The defendant also acted as a conduit of information between other members of the scheme.
U.S. Attorney Oberly gave the following comments: “Individuals who conspire with others to file false claims against the United States Treasury will face significant penalties, as this case demonstrates. My office is committed to prosecuting these cases, and I will seek incarceration wherever possible and appropriate.”
IRS Criminal Investigation Special Agent in Charge Akeia Conner said, “Individuals who commit refund fraud and identity theft deserve to be punished to the fullest extent of the law. IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and blatantly disregard the victims of their schemes.”
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, the Social Security Administration Office of the Inspector General, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Lauren Paxton.
North Carolina Woman Sentenced for Role in Widespread Tax Return and Identity Fraud ConspiracyRead the Press Release
The Justice Department and the Internal Revenue Service (IRS) announced that a Durham, North Carolina, woman was sentenced today to serve 30 months in federal prison for conspiring to defraud the IRS.
Tasha Renee Smith was sentenced in Greensboro, North Carolina, by U.S. District Judge Catherine Eagles, who ordered her to serve three years of supervised release and to pay restitution to the IRS in the amount of $375,578. Smith pleaded guilty on April 8 to the conspiracy charge.
According to court documents, Smith was employed by Nothing But Taxes (NBT), a tax return preparation business with branches throughout North Carolina, for parts of the filing seasons for tax years 2005, 2006 and 2007. While working at NBT’s Durham location, Smith intentionally falsified tax returns for many clients. Common techniques she employed include the addition of false dependents to tax returns and inflating the Earned Income Tax Credit for low-income clients by adding additional, fictitious income.
According to court documents, during her second and third seasons preparing returns at NBT, Smith made extensive efforts to solicit and purchase the names, dates of birth and social security numbers of individuals in the community. Smith used the identities she purchased as false dependents on returns she prepared at NBT later that tax year. Smith charged clients a side cash payment in exchange for a false dependent, in addition to the flat return preparation fee charged by NBT.
According to court documents, during the 2008 tax filing season, Smith and two business partners opened their own tax return preparation business, Tax Wizards, with branches in Durham and Roxboro, North Carolina. Smith owned and operated the business, and hired her own return preparers. Like NBT, Tax Wizards became a center of tax fraud. Smith encouraged return preparers she hired at Tax Wizards to keep any falsifications on tax returns they prepared modest, in the $1,200 to $1,500 range, to avoid IRS scrutiny. Smith knew that return preparers she employed at Tax Wizards were falsifying returns for clients because she had cautioned the return preparers to keep any falsifications modest and because she witnessed some falsifications occur on the premises. Smith intentionally tried to avoid being physically present at Tax Wizards, in part to avoid the hassle of day-to-day management, but also because she did not want to be present while she knew fraud was occurring.
Court documents state that Smith and another person opened a tax return preparation business during the 2009 tax filing season called Keystone Tax Services, also in Durham. Keystone also became a hotbed of tax fraud. Smith also intentionally tried to avoid being physically present at Keystone for the same reasons as with Tax Wizards. Around April 2011, Smith closed down Tax Wizards and Keystone. Smith became aware that return preparers at her businesses were falsifying returns by creating fictitious Form W-2’s ostensibly issued by non-existent businesses. The falsification was so rampant and involved so much money that Smith feared IRS detection, so she shuttered Tax Wizards and Keystone.
According to court documents, during filing season for tax year 2011, in January to April 2012, Smith and other investors opened a business called Tax Solutions. Tax Solutions had four branches throughout North Carolina, specifically, in Roxboro, Durham, Burlington and Kinston. Smith was hired in exchange for a share of the business’s profits and was charged with hiring managers for the various Tax Solutions branches. She hired at least one manager whom she knew to be complicit in the fraudulent practices at Tax Wizards and Keystone. Return preparers at Tax Solutions also falsified numerous tax returns for their clients.
The case against Smith was investigated by Special Agents of IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Frank Chut for the Middle District of North Carolina and Trial Attorney Jonathan Marx of the Justice Department’s Tax Division.
North Carolina Woman Sentenced for Role in Widespread Tax Return and Identity Fraud ConspiracyRead the Press Release
WASHINGTON, DC – The Justice Department and the Internal Revenue Service (IRS) announced that a Durham, North Carolina, woman was sentenced today to serve 30 months in federal prison for conspiring to defraud the IRS.
Tasha Renee Smith was sentenced in Greensboro, North Carolina, by U.S. District Judge Catherine Eagles, who ordered her to serve three years of supervised release and to pay restitution to the IRS in the amount of $375,578. Smith pleaded guilty on April 8 to the conspiracy charge.
According to court documents, Smith was employed by Nothing But Taxes (NBT), a tax return preparation business with branches throughout North Carolina, for parts of the filing seasons for tax years 2005, 2006 and 2007. While working at NBT’s Durham location, Smith intentionally falsified tax returns for many clients. Common techniques she employed include the addition of false dependents to tax returns and inflating the Earned Income Tax Credit for low-income clients by adding additional, fictitious income.
According to court documents, during her second and third seasons preparing returns at NBT, Smith made extensive efforts to solicit and purchase the names, dates of birth and social security numbers of individuals in the community. Smith used the identities she purchased as false dependents on returns she prepared at NBT later that tax year. Smith charged clients a side cash payment in exchange for a false dependent, in addition to the flat return preparation fee charged by NBT.
According to court documents, during the 2008 tax filing season, Smith and two business partners opened their own tax return preparation business, Tax Wizards, with branches in Durham and Roxboro, North Carolina. Smith owned and operated the business, and hired her own return preparers. Like NBT, Tax Wizards became a center of tax fraud. Smith encouraged return preparers she hired at Tax Wizards to keep any falsifications on tax returns they prepared modest, in the $1,200 to $1,500 range, to avoid IRS scrutiny. Smith knew that return preparers she employed at Tax Wizards were falsifying returns for clients because she had cautioned the return preparers to keep any falsifications modest and because she witnessed some falsifications occur on the premises. Smith intentionally tried to avoid being physically present at Tax Wizards, in part to avoid the hassle of day-to-day management, but also because she did not want to be present while she knew fraud was occurring.
Court documents state that Smith and another person opened a tax return preparation business during the 2009 tax filing season called Keystone Tax Services, also in Durham. Keystone also became a hotbed of tax fraud. Smith also intentionally tried to avoid being physically present at Keystone for the same reasons as with Tax Wizards. Around April 2011, Smith closed down Tax Wizards and Keystone. Smith became aware that return preparers at her businesses were falsifying returns by creating fictitious Form W-2’s ostensibly issued by non-existent businesses. The falsification was so rampant and involved so much money that Smith feared IRS detection, so she shuttered Tax Wizards and Keystone.
According to court documents, during filing season for tax year 2011, in January to April 2012, Smith and other investors opened a business called Tax Solutions. Tax Solutions had four branches throughout North Carolina, specifically, in Roxboro, Durham, Burlington and Kinston. Smith was hired in exchange for a share of the business’s profits and was charged with hiring managers for the various Tax Solutions branches. She hired at least one manager whom she knew to be complicit in the fraudulent practices at Tax Wizards and Keystone. Return preparers at Tax Solutions also falsified numerous tax returns for their clients.
The case against Smith was investigated by Special Agents of IRS-Criminal Investigation. It was prosecuted by Assistant U.S. Attorney Frank Chut for the Middle District of North Carolina and Trial Attorney Jonathan Marx of the Justice Department’s Tax Division.
North Carolina Man Pleads Guilty to Travel in Furtherance of Underage ProstitutionRead the Press Release
NORFOLK, Va. – Jeffrey Chadwick Wright, 25, of Warrenton, NC, pleaded guilty today to travel in furtherance of a criminal activity, namely underage prostitution.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, and Charles May, Acting Executive Assistant Director for the Atlantic Operations, Naval Criminal Investigative Service, made the announcement after the plea was heard by United States Magistrate Judge Douglas Miller.
Wright was indicted on May 8, 2014 by a federal grand jury on charges of sex trafficking of children; travel in furtherance of criminal activity; and concealment of evidence. Wright faces a maximum penalty of five years in prison when he is sentenced on November 14, 2014 before United States Chief District Judge Rebecca Beach Smith.
Wright, then on active duty in the U.S. Navy, assisted a 17 year old HIV positive female in running away from her foster home in Hampton Roads. Wright then paid for backpage.com advertisements for escort services for the 17 year old in Virginia, Maryland and North Carolina. Wright was arrested on state charges on March 3, 2014, when he and the victim were discovered by the Naval Criminal Investigative Service in base housing on Naval Station Norfolk.
This case was investigated by the Naval Criminal Investigative Service (NCIS) and the Virginia Beach Police Department. Assistant United States Attorney Elizabeth M. Yusi and Special Assistant United States Attorney Christopher A. George are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Tweet
Newport News Man Convicted of Decade-Long Drug ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Kelvin L. Brown (a.k.a. “Doom”), 34, of Newport News, was convicted yesterday by a federal jury of participating in a decade-long conspiracy to distribute cocaine and crack cocaine. Brown also was convicted of two counts of possessing firearms in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Royce E. Curtin, Special Agent in Charge of the FBI’s Norfolk Field Office; and Richard W. Myers, Chief of Newport News Police, made the announcement after the verdict was accepted by U.S. District Judge Robert G. Doumar.
According to court records and evidence at trial, Brown was arrested by Newport News police on Sept. 13, 2013 in a barricaded apartment with a firearm, a scale and cocaine. The evidence showed that Brown and his co-conspirators distributed crack and powder cocaine in the Newport News area beginning in the early 2000s, and they possessed firearms in order to protect the drug conspiracy and its proceeds. Brown also made threats against a cooperating witness during the course of the case.
Brown will be sentenced on Dec. 8, 2014. On the drug conspiracy conviction, Brown faces a mandatory term of five years and a maximum penalty of 40 years in prison. On the two counts of possessing a firearm in furtherance of a drug trafficking crime, Brown faces a combined mandatory minimum term of 30 years in prison. On the felon-in-possession conviction, Brown faces a maximum of ten years in prison.
This investigation was led by FBI and the Safe Streets Task Force, with assistance from the Newport News Police, Virginia State Police, and Newport News Commonwealth Attorney’s Office. Managing Assistant U.S. Attorney Howard J. Zlotnick and Trial Attorney Joseph K. Wheatley from the Organized Crime and Gang Section of the Justice Department’s Criminal Division are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:13-cr-110.