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30 July 2014
St. Louis Man Indicted for Drug TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a St. Louis, Mo., man was indicted by a federal grand jury today for drug trafficking after he suffered a heroin overdose in a Columbia, Mo., hotel room.
Gustavo Ruvalcaba, 43, of St. Louis, was charged in a four-count indictment returned by a federal grand jury in Jefferson City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Ruvalcaba on July 15, 2014.
Today’s indictment alleges that Ruvalcaba was in possession of heroin, crack cocaine, powder cocaine and methamphetamine, all with the intent to distribute, on July 14, 2014.
According to an affidavit filed in support of the original criminal complaint, Columbia police officers were dispatched to a room at the Super 8 Motel in response to a drug overdose. Ruvalcaba was lying on the floor and being treated by EMS and fire personnel when officers arrived.
Officers executed a search warrant for the hotel room and seized 18 grams of black tar heroin, seven grams of crack cocaine, 39 grams of powder cocaine, 13 grams of methamphetamine, drug paraphernalia and $74,525.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Stuart J. Zander. It was investigated by the Drug Enforcement Administration and the Columbia, Mo., Police Department.
Shreveport Man Pleads Guilty to Failing to Update His Sex Offender RegistrationRead the Press Release
SHREVEPORT, La. –A Shreveport man pleaded guilty on Monday for failing to register his correct address for his sex offender identification, U.S. Attorney Stephanie A. Finley announced today.
Michael Thomas Cupp, 60, of Shreveport, pleaded guilty Monday before U.S. District Judge S. Maurice Hicks, to one count of failure to update his sex offender registration. According to evidence presented at the guilty plea, starting in January 2009, Cupp listed his sex offender registration as being in Texas. However, upon investigation, it was determined that Cupp had never lived in the state. Cupp was originally convicted of forcible rape, incest, carnal knowledge of a juvenile and indecent behavior with a juvenile in State District Court in Baton Rouge in 1992. After completion of his prison sentence, he began living in Shreveport in 1998. Cupp then registered his address in Panola County (Texas) Sheriff’s Office in April of 2009, but after a compliance check of sex offenders in 2012, he was found to have been living and working continuously in Shreveport.
Cupp faces up to 10 years in prison, five years to life of supervised release and a $250,000 fine. A sentencing date of November 10, 2014 has been set.
The U.S. Marshal’s Service, Panola County Sheriff’s Office in Texas, and the Shreveport Police Department conducted the investigation. Assistant U.S. Attorney Allison D. Bushnell is prosecuting the case.
Santa Fe Man Sentenced to Seventy-Eight Months for Participating in Crack Cocaine Trafficking ConspiracyRead the Press Release
ALBUQUERQUE – Michael Jaramillo, 24, of Santa Fe, N.M., was sentenced today to 78 months in federal prison followed by four years of supervised release for his role in a cocaine base trafficking conspiracy.
Jaramillo was one of five men who were indicted in April 2013, on federal narcotics and firearms charges as the result of “Operation Rio Grande Stucco,” a DEA led investigation into an organization that allegedly manufactured and distributed cocaine base, more commonly known as “crack” or “crack cocaine,” in Bernalillo and Santa Fe Counties, N.M.
The five-count indictment charged Jaramillo and Robert Romero, 26, also of Santa Fe, and Albuquerque residents, Gabriel Mirabal, 33, Sam Eylicio, Jr., 37, and Dominic Anaya, 33, with conspiracy to distribute crack cocaine in Bernalillo and Santa Fe Counties between May 2012 and April 2013. Jaramillo also was charged with distributing crack cocaine in Santa Fe in March 2012. Romero was charged with possession of crack cocaine with intent to distribute in Santa Fe in July 2012, and with using and carrying a firearm in furtherance of a drug trafficking crime. Mirabal was charged with possessing cocaine with intent to distribute in Albuquerque in Feb. 2013.
Jaramillo entered a guilty plea on March 21, 2014, to the conspiracy count and admitted purchasing crack cocaine from two of his co-defendants and then reselling it to others.
Romero pled guilty to two drug trafficking charges and a firearms charge on May 13, 2014, under a plea agreement that requires him to be sentenced to ten years in federal prison followed by four years of supervised release. Romero remains in federal custody pending his sentencing hearing which is scheduled for Aug. 13, 2014.
Eylicio pled guilty on June 23, 2014, to participating in a cocaine base trafficking conspiracy. Under the terms of his plea agreement, Eylicio will be sentenced to 125 months in federal prison followed by four years of supervised release. Eylicio remains in federal custody pending his sentencing hearing which is scheduled for Sept. 22, 2014.
Mirabal and Anaya have entered not guilty pleas to the indictment. If convicted of the drug trafficking charges against them, each faces a maximum penalty of not less than five years or more than 40 years in prison. They remain in custody pending trial. An indictment is merely an accusation, and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Albuquerque office of the DEA and the HIDTA Region III Drug Task Force, with assistance from the 1st Judicial District Attorney’s Office, and is being prosecuted by Assistant U.S. Attorney Nicholas J. Ganjei.
The Region III Drug Task Force is comprised of officers from the New Mexico State Police, Santa Fe Police Department and the Santa Fe County Sheriff’s Office and receives support from the HIDTA – High Intensity Drug Trafficking Area – program. HIDTA is a program of the White House Office of National Drug Control Policy that provides assistance to federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States.
The investigation leading to the indictment, has been designated as part of the Organized Crime Drug Enforcement Task Force (“OCDETF”) program, a nationwide Department of Justice initiative that combines the resources and unique expertise of federal agencies, along with their local counterparts, in a coordinated effort to disrupt and dismantle major drug trafficking organizations.
Rockville Physician Indicted for Illegally Distributing Prescription Drugs, Causing Death of A PatientRead the Press Release
Maryland Authorities Working to Identify Corrupt “Pill Mill” Medical Professionals
Greenbelt, Maryland - A federal grand jury has indicted Silviu Ziscovici, M.D., a/k/a “Dr. Z,” age 59, of Rockville, Maryland, on charges of conspiracy to distribute and distribution of controlled dangerous substances, distribution of a controlled dangerous substance resulting in death, and money laundering, in connection with his Rockville pain management practice. The indictment was returned on July 28, 2014, and unsealed today upon the arrest of the defendant.The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Assistant Director in Charge Valerie Parlave of the Federal Bureau of Investigation’s Washington Field Office; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.
“Sadly, many drug users become hooked on oxycodone with the assistance of medical professionals, then move on to even more dangerous drugs such as heroin,” said U.S. Attorney Rod J. Rosenstein. “Local, state and federal authorities in Maryland are working together to identify corrupt medical professionals who operate ‘pill mills,’ put them out of business and hold them accountable.”
“To those who practice medicine and abuse the privilege of caring for their patients by inappropriately prescribing controlled substances, DEA has a strong message for you: We will investigate you and prosecute you to the fullest extent of the law,” said Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division.
“Providing prescription drugs to people who do not need them is no different than distributing illegal street drugs,” said Assistant Director in Charge Parlave. “When abused and used outside of legitimate medical purposes, pain medications have dangerous effects on users. The FBI is committed to the pursuit of prescription drug abuse and will continue to work with our law enforcement partners to protect our community from the dangers of these crimes.”
“Physicians who exploit the trust given to them by facilitating the abuse of controlled dangerous substances are negatively impacting our entire community. IRS-Criminal Investigation will work with our law enforcement partners to insure that these individuals are held accountable for their actions and do not profit from their criminal activity,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office.
According to the indictment, Silviu Ziscovici was a physician who held a Maryland medical license. Ziscovici worked as a pain management specialist and practiced out of an office in Rockville, Maryland. As a medical doctor, Ziscovici was authorized to prescribe medicine, including controlled substances, to patients for legitimate medical purposes and in the usual course of professional practice.
The 29-count indictment alleges from at least July 2009 through June 22, 2010, Ziscovici conspired to distribute and distributed controlled dangerous substances. As part of the conspiracy, Ziscovici prescribed oxycodone, methadone, morphine, alprazolam and other controlled substances to patients without individually assessing their medical needs. As a result, the indictment alleges that Ziscovici’s office served as a “pill mill,” at which individuals paid a fee to obtain prescriptions for controlled substances without any demonstrated medical need.
The indictment alleges that a co-conspirator residing in Tennessee repeatedly provided transportation for himself and others from Tennessee to Ziscovici’s office in Rockville, to obtain prescriptions for controlled substances. According to the indictment, Ziscovici instructed the co-conspirator not to bring anyone under the age of 25, or anyone with visible “track marks” to Ziscovici’s office. The indictment alleges that, among other things, Ziscovici conducted cursory, incomplete, or no medical examination of patients, prescribed inappropriate combinations of medications, increased patients’ dosages without medical justification, and treated a large number of patients who had travelled long distances to his office in order to obtain prescriptions for highly addictive controlled substances.
The indictment alleges that Ziscovici repeatedly caused oxycodone, methadone, morphine, alprazolam and other drugs to be distributed, outside the course of professional practice and without a legitimate medical purpose. According to the indictment, on February 2, 2010, Ziscovici caused methadone to be distributed to a patient, outside the usual course of professional practice and without a legitimate medical purpose, and the patient died as a result of using the methadone.
Finally, the indictment charges that Ziscovici used the proceeds of the drug distribution to purchase a vehicle, specifically, using a check in the amount of $13,983.70 drawn on his business checking account. The indictment seeks the forfeiture of at least $651,500, which constitutes proceeds traceable to the drug distribution, as well as cash, coins and jewelry seized from Ziscovici’s bank accounts, safe deposit boxes, and from his home.
Ziscovici faces a mandatory minimum sentence of 20 years in prison, and up to life in prison, for distribution of controlled substances resulting in death; 20 years in prison for each of the 26 counts of distribution of controlled substances and for the conspiracy; and 10 years in prison for money laundering. Ziscovici had an initial appearance this afternoon in U.S. District Court in Greenbelt, and remains in custody pending a detention hearing scheduled for Friday, August 1, 2014, at 3:30 p.m.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the DEA, FBI, IRS-CI, and Montgomery County Police Department for their work in the investigation and recognized the Virginia State Police, Knox County, Tennessee, Sheriff’s Office, and the Blount County, Tennessee Sheriff’s Office for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys Arun G. Rao and Daniel C. Gardner, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Rochester Men Indicted for Wire Fraud and Theft of United States MailRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned an Indictment charging Igor Kasap, 34, and Arkadiy Kasap, 29, both of Rochester, N.Y., with conspiracy to commit wire fraud and wire fraud. The charges carry and maximum penalty of 20 years in prison and a $250,000 fine. Igor Kasap is also charged with obstruction of correspondence and theft of United States mail, both of which are punishable by five years in prison and a $250,000 fine.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that according to the indictment, the defendants placed online advertisements for stolen items on eBay. In one particular case, they tried to sell a stolen pallet of Exxon-Mobil jet engine oil. During the investigation of that incident, law enforcement found over 52,000 pieces of undelivered mail in the defendant’s Gates Warehouse, several thousand of which had been opened.
The defendants will be arraigned before U.S. Magistrate Judge Jonathan W. Feldman on July 31, 2014 at 9:00 a.m. in Rochester.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The Indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Inspectors with the United States Postal Inspection Service, under the direction of Special Agent in Charge Shelly Binkowski, and Officers and Investigators of the Gates Police Department, under the direction of Chief James VanBrederodeRemarks by Assistant Attorney General John P. Carlin on Cyber-Crime at Carnegie Mellon UniversityRead the Press Release
PITTSBURGH - Thanks for that kind introduction. I’m grateful to be with you today to discuss emerging national security threats.
In particular, I’ll discuss cyber threats linked to a diverse range of dangerous cyber actors. And I’ll tell you what we in the National Security Division, at the Department of Justice, are doing to counter those threats.
I should note at the outset that this week marks a busy time for national security law. There is a lot going on in the world, all of which we are tracking closely. But I’m going to focus today on the threats associated with national security cyber issues.
Just last week, the 9/11 Commission published its reflections on the tenth anniversary of the Commission’s original report. And it specifically pointed to the growing significance of cyber threats to our Government and private sector.
In its report, the Commission noted that: “We are at September 10th levels in terms of cyber preparedness.” They added that “American companies’ most-sensitive patented technologies and intellectual property, U.S. universities’ research and development, and the nation’s defense capabilities and critical infrastructure, are all under cyber attack.”
I could not agree more.
As the Commission concluded, “One lesson of the 9/11 story is that, as a nation, Americans did not awaken to the gravity of the terrorist threat until it was too late. History may be repeating itself in the cyber realm.”
I’m particularly glad to talk about these important issues here in Pittsburgh. In a way, this brings me back to earlier days of my cybersecurity work.
I began my career as a prosecutor handling a wide range of crimes, but I have spent nearly a decade focusing on cyber issues – including as the National Coordinator of the Justice Department’s Computer Hacking and Intellectual Property, or “CHIP,” program.
Then, I had the honor of joining FBI Director Mueller as he led a critical shift. Even back then, he understood just how significant cyber threats would soon become.
Soon after arriving I was asked to prepare a speech on the FBI’s role in tackling national security cyber threats. We saw this as an important opportunity to underscore how serious the national security cyber threat was—at a time when not many people were talking about it.
It was his first major FBI speech on the national security cyber threat. Much of what the Director said that day remains true today. We warned of the particular dangers lurking in the intersection between cyber and terrorism.
But we also emphasized that terrorists are not the only ones seeking to harm us online—there are other dangerous actors out there, including nation-states. We pointed to the growing use of botnets as a way to attack networks, infect computers, and inject spyware.
We talked about the dangers of cyber espionage, including economic espionage. And we explained that the FBI was mobilizing to address these threats by collaborating with partners across the Federal Government and in the private sector.
That speech, a significant moment in the FBI’s cyber history, was delivered just a few hours east of here, at Penn State. Not just because of the balmy November weather it’s known for. But rather, as explained then, because “[m]uch of our collaboration begins in Pittsburgh—at the FBI’s Cyber Fusion Center.”
The Director said to think of that fusion center as a hub, with spokes emanating out to federal agencies, software companies, Internet service providers, merchants, and members of the financial sector.
That model was right then and it is right now.
The fusion center, and Pittsburgh generally, is the center of so much of our cybersecurity collaboration, which is critical to our efforts to disrupt cyber threats.
That is why a key theme from our time near Pittsburgh nearly seven years ago was collaboration. Back then we talked about the cooperation underway as part of Operation Bot Roast.
Through that project, the Justice Department, the FBI, the CERT Coordination Center at Carnegie Mellon, and private companies were working to identify infected computers and shut down bot-herders.
Also on that trip, we visited the National Cyber-Forensics and Training Alliance, right here in Pittsburgh. Today I came full circle. Now I am delivering a speech about cyber in Pittsburgh. And I spent this morning with the current FBI Director, Jim Comey, visiting NCFTA again.
I could scarcely have guessed back in 2007 that by today the NCFTA would have aided in successful prosecutions of more than 300 cyber criminals worldwide. Or that it would be specifically called out by the recent 9/11 Commission Report, as “a promising example of the type of cross-sector collaboration that will be needed to combat this threat.”
Returning to Pittsburgh, I am struck by just how much progress we have made in seven short years. But there is more that must be done. Our recognition of the magnitude of the cyber threat has grown over that same time.
Director Comey recently said, as the torch was passed, that Director Mueller told him he believed cyber issues would come to dominate Director Comey’s tenure just as counterterrorism had dominated his. Director Comey has continued to express FBI’s steadfast commitment to tackling cyber threats.
Just this morning as the FBI Director and I toured the NCFTA, he reiterated what he has said before, “John Dillinger couldn’t do a thousand robberies in the same day in all 50 states in his pajamas halfway around the world. That’s the challenge we now face with the Internet.”
So the threat is real, it is here, and it is not going away. But today, seven years later, our ability to detect, disrupt and deter has also improved.
Our most recent successes can be traced to the visionaries who predicted the threat years ago and laid the foundation to meet the challenge.
Take as just one example, another Pittsburgh story. A historic indictment that came right out of the Western District of Pennsylvania.
Earlier this summer, we announced unprecedented charges against five members of the Chinese military for computer hacking, economic espionage, and other offenses directed at six American victims in the U.S. nuclear power, metals and solar products industries.
What these charges allege is stealing from America’s heartland, literally and figuratively.
The charges allege that cyber thieves grabbed the hard work of companies right here in Pennsylvania. And they allege that the thieves targeted key American economic sectors, like metals and energy.
This is the true face of cyber economic espionage and of those it targets. This type of theft hurts American competitiveness by stealing what we work so hard for.
These charges against uniformed members of the Chinese military were the first of their kind. Some said they could not be brought. But this indictment alleges, with particularity, specific actions on specific days by specific actors to use their computers to steal valuable information from across our economy.
It alleges that while the men and women of our businesses spent their work-days innovating, creating, and developing strategies to compete in the global marketplace, these members of Unit 61398 spent their work days in Shanghai stealing the fruits of our labor.
It alleges that they stole information particularly beneficial to Chinese companies, and took communications that would provide competitors with key insight into the strategy and vulnerabilities of the victims.
We should not and will not stand idly by, tacitly giving permission to anyone to steal from us. We will hold accountable those who steal—no matter who they are, where they are, or whether they steal in person or through the Internet.
Because cyber crime affects us all, including those here in Pennsylvania who have suffered at the hands of cyber thieves.
While cases like the one brought here in Pittsburgh are extremely challenging, we proved that they are possible. The criminal justice system is a critical component of our nation’s cyber security strategy.
At the Justice Department, we follow the facts and evidence where they lead. Sometimes, the facts and evidence lead us to a lone hacker in the United States, or a sophisticated organized crime syndicate in Russia. And sometimes, they lead us to a uniformed member of the Chinese military.
Other times, as we recently saw, they may lead us to a foreign businessman alleged to have conspired to hack in and steal information from Boeing and other defense contractors.
Information that included more than six hundred thousand data files of sensitive information related to U.S. military aircraft and other defense matters.
And yet other times, they may lead to other types of criminals, like those investigated and prosecuted by DOJ’s Criminal Division for spyware, botnets, and similar conduct.
But, no matter where they lead, there can be no free passes because the stakes are too high. The list of threats out there is significant and it is expanding.
We have all seen the harms inflicted by state actors and criminals, and we have responded. But we know they are not the only ones interested in cyber activity.
Terrorists are also using cyberspace to further their goals. They are using it to communicate and plan. They are using it for propaganda and recruitment. And they are intent on getting to the point where they can conduct cyber attacks themselves.
That last category is a relatively new one. But we know that terrorists are looking to launch cyber attacks. They have that intent now.
Over the past few years, we have seen al-Qaeda issue calls for cyberattacks against networks such as the electric grid, comparing vulnerabilities in the United States’ critical cyber networks to the vulnerabilities in the country’s aviation system before 9/11.
If successful, terrorists could use cyber attacks to bring about economic or physical damage, or even, in extreme cases, serious injury or death.
These are serious threats. To disrupt them, we take an all-tools approach, deeply rooted in our Division’s history.
While the Pittsburgh case was the first of its kind in some ways, it was not the first charges we have brought against individuals who steal from Americans to benefit state-owned enterprises.
As just one example, in March, we successfully obtained a significant conviction against Walter Liew for economic espionage.
What Liew stole was something Americans see and use daily. Something that does not have a national security implication. Something that simply brings a profit.
Liew stole the formula for the color white from Dupont and passed it to a large Chinese state-owned company. Just this month, he was brought to justice -- sentenced to 180 months’ incarceration and ordered to pay restitution of about half a million dollars.
Our success in the cyber arena builds upon a solid foundation. But its roots go back even farther, and extend well beyond the economic espionage context.
NSD was created in response to the grave threat of terrorism.
After the devastating attacks of September 11, it became clear that the Justice Department needed to reorganize to tackle terrorism and national security threats more effectively.
We needed a single Division to integrate the work of prosecutors and law enforcement officials with intelligence attorneys and the Intelligence Community.
So, in 2006, Congress created the Department’s first new litigating division in almost half a century: NSD.
NSD works closely with partners throughout the government to ensure we leverage all available tools to combat the terrorism threat. And we’ve proven, in that context, that the criminal justice system is a vital part of our nation’s counterterrorism strategy.
Just this spring, Abu Hamza al-Masri was convicted by a jury in New York on eleven counts. He was involved in an attack in Yemen in December 1998 that resulted in the deaths of four hostages.
And he provided material support to terrorists, including al Qaeda and the Taliban.
In March, Sulaiman Abu Ghaith was convicted of conspiring to kill Americans and other terrorism charges. Abu Ghaith was the son-in-law of Usama bin Laden and a senior member of al Qaeda. He was the face and voice of al Qaeda in the days and weeks after the 9/11 attacks.
In both of these cases, it took more than a decade; but, as a result of our integrated approach to combating terrorism, we brought these men to justice.
These cases are the two most recent in a long line of successful terrorism prosecutions.
At NSD, we took the lessons we learned from counterterrorism and applied them to our work on national security cyber threats. In the face of escalating threats, we recognized the need to reorganize. To integrate.
When I was chief of staff for Director Mueller, the FBI undertook a transformation to meet the growing cyber threat—a transformation built around the type of collaboration, coordination, and cooperation that the Director discussed in his speech right here in Pennsylvania. In 2011, NSD did the same.
In late fall of 2011, ten years after 9/11, we established a review group to evaluate NSD’s existing work on national security threats and chart out a plan for the future.
Six months later, that team issued recommendations that shaped what NSD’s national security cyber program looks like today.
Most significantly, in 2012, we created and trained the National Security Cyber Specialists’ Network to focus on combating cyber threats to the national security.
This Network—known as NSCS—includes prosecutors from every U.S. Attorney’s Office around the country, along with experts from the Department’s Computer Crime and Intellectual Property Section (or “CCIPS”) and attorneys from across all parts of NSD.
Adopting the successful counterterrorism model, we now have prosecutors nationwide routinely meeting with the FBI to review intelligence and investigative files.
The creation of the NSCS Network was motivated by a desire to increase the Department’s contribution to U.S. cybersecurity efforts through criminal investigation and prosecution.
By December 2012, we made public predictions that with the establishment of the NSCS—by empowering more than a hundred prosecutors in the field working with the FBI on these cases—one would be brought.
And, in May, we made good on that promise. It is this new, integrated approach that made the Pittsburgh case possible.
As part of the creation of the NSCS, we brought prosecutors from around the country—Wisconsin, New York, and Georgia—to help NSD build this case.
We partnered with colleagues across the government, like U.S. Attorney David Hickton here in the Western District of Pennsylvania, where entities were repeatedly hit. And we worked with offices across the FBI—from California, to Oregon, to Oklahoma, and back in D.C.
Our team thought creatively. They worked collaboratively. They explored all available options for stopping this activity.
That’s how we were able to indict five members of the Third Department of the People’s Liberation Army. And now these men stand accused of cyber intrusions targeting a range of U.S. industries.
But we recognize that charges are just one tool – albeit a very effective one – in our toolbox. We are committed to working with our colleagues throughout the government to ensure we bring all tools to bear to disrupt cyber threats – both criminal and national security.
A great example is yet another Pittsburgh story. Back in June, our colleagues in the Criminal Division, the Western District of Pennsylvania, and the Bureau undertook an operation that disrupted the GameOver Zeus botnet.
This criminal threat was significant – losses attributable to the botnet were estimated to be more than $100 million. But disruption involved more than just criminal charges – it also involved civil court orders, significant information sharing, and seizures of servers in many foreign countries.
This is just one example. In the national security context, we look to the viability of sanctions, designations, diplomatic options, and other enforcement mechanisms. Through collaboration and creative thinking, our toolset continues to grow.
But we at NSD recognize that stopping attacks before they ever take place is the ultimate goal. That we will succeed when there are no more criminal charges to bring.
To that end, we also worked hard to improve cyber defenses, both in Government and with the private sector. We’ve emphasized precisely the type of collaboration that Director Mueller discussed here in Pennsylvania seven years ago.
Through the FBI’s InfraGard, the FBI works closely with companies that have been the victims of hackers.
That program, which has grown to more than 25,000 active members, continues to bring together individuals in law enforcement, government, the private sector, and academia to talk about how to protect our critical infrastructure.
Likewise, the Department of Homeland Security, the Department of Energy, and other departments and agencies routinely work closely with companies to protect critical infrastructure.
We at the Justice Department heard from such companies. And we are taking steps to respond to the concerns of the private sector.
In April, we teamed up with the Federal Trade Commission to issue a policy statement making it clear that antitrust law is not and should not be a bar to legitimate cyber security information sharing.
And in May, the Justice Department issued a white paper, which clarifies that the Stored Communications Act doesn’t ordinarily restrict network operators from sharing certain data with the Government to guard information.
This guidance will help the private sector collaborate more freely to protect itself.
All of this is just a start. Going forward, we need legislation to facilitate greater information sharing between the private sector and the government.
In conclusion, we’ve come a long way in seven years.
In Pennsylvania seven years ago, we warned that “[c]yber criminals and terrorists seek to harm our economy, our infrastructure, and our way of life.” That was true then; and it’s even more true now.
We noted that “[o]ur capabilities are strong, but they rely on key partnerships with other federal agencies, law enforcement, private industry, academia, and citizens alike.” That was true then; and it’s even more true now.
Finally, the Director of the FBI issued an imperative: “we must continue to work closely with all of you—members of the privacy sector and the academic community.”
I’m here today with a new FBI Director to reaffirm that call. Because it was true then; and, as the 9/11 Commission’s recent report makes clear, it’s even more true now.
Through charges like the ones announced in the Pittsburgh case, we at the Justice Department continue to protect Americans from being victimized through cyberspace as they were here in Pittsburgh. We need your support. Talk with us; share with us; work with us. Build trust.
Together, we can ensure that, here in America’s heartland and throughout this country, the hard work of Americans doesn’t fall prey to cyber criminals. Together, we can stay connected, and also stay safe.
Thank you for your attention. I look forward to your questions.
# # #
Ramah Navajo Man Sentenced for Aggravated Sexual Abuse of Navajo TeenagerRead the Press Release
ALBUQUERQUE – Sabastiano Coho, 23, a member of the Ramah Chapter of the Navajo Nation, was sentenced today to 50 months in federal prison followed by ten years of supervised release for his aggravated sexual abuse conviction. Coho will be required to register as a sex offender after he completes his prison sentence.
Coho was arrested in Feb. 2011, on a criminal complaint charging him with aggravated sexual abuse and subsequently indicted in March 2011. According to court filings, Coho attempted to sexually assault the victim, a 19-year-old Navajo woman, on Jan. 25, 2011, in a location within the Navajo Indian Reservation in Cibola County, N.M. Proceedings in the case were delayed as a result of competency evaluations.
On April 3, 2014, Coho pled guilty to the indictment and admitted that he attempted to engage in a sexual act, by using force, with the victim on Jan. 25, 2011.
This case was investigated by the Gallup office of the FBI and the Ramah Navajo Tribal Police Department and was prosecuted by Special Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Pound of Cocaine Gets Birmingham Man 10-Year Federal Prison SentenceRead the Press Release
TUSCALOOSA -- A federal judge on Tuesday sentenced a Birmingham man to 10 years in prison for possessing and intending to distribute about a pound of cocaine, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
U.S. District Judge L. Scott Coogler varied upward from federal guidelines in sentencing BINIAM ASGHEDOM, 40, an Eritrean national, for the possession with intent to distribute cocaine. The judge found that Asghedom had played a significant role in a larger conspiracy to distribute cocaine and heroin in the Birmingham metro area.
Judge Coogler also ordered Asghedom to serve 30 years of supervised release after completing his prison term, but indicated that Asghedom would be deported to Eritrea.
A federal jury convicted Asghedom, following a two-day trial in March, for possessing and intending to distribute the pound of cocaine.
According to evidence at trial, Birmingham police stopped Asghedom for a traffic violation on Dec. 1, 2010, after federal agents had followed him from a known drug location. Asghedom was one of a number of targets of a larger DEA investigation. After obtaining Asghedom’s consent, officers searched the 2000 GMC Sierra pick-up truck he was driving and found the cocaine and $14,500. Forensic testing later revealed that the outside packaging of the cocaine had two latent fingerprints that matched Asghedom's.The DEA investigated the case, which Assistant U.S. Attorney Gregory R. Dimler prosecuted.
###Pittston Man Sentenced to Nearly Two Months in Prison for Bringing Gun into Federal BuildingRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 58-year-old Pittston resident pleaded guilty and was sentenced yesterday by U.S. Magistrate Judge Karoline Mehalchick to nearly two months in prison for unlawfully possessing and causing to be present a loaded firearm inside the William J. Nealon Federal Building in Scranton on June 5, 2014.
According to United States Attorney Peter Smith, the defendant, Jerome Vantaggi, was sentenced to time already served in prison, which totaled 55 days.
The charge against Vantaggi resulted from an investigation by the United States Marshals Service.
Vantaggi must also pay a $25 special assessment, and serve a year on supervised release. Judge Mehalchick ordered that Vantaggi may not possess a firearm while on supervised release and must undergo a mental health evaluation.
The case was prosecuted by Assistant U.S. Attorney Francis P. Sempa.
****Pennsylvania Man Sentenced to 33 Months in Prison for Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Moscow, Pennsylvania, man was sentenced today to 33 months in prison for his role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever identified, U.S. Attorney Paul J. Fishman announced today.
The scheme caused more than 8,000 fraudulent U.S. income tax returns to be filed, which sought more than $65 million in tax refunds and which resulted in losses to the United States of more than $12 million.
Michael Senatore, 44, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with conspiracy to defraud the United States and theft of government property. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court: Stolen Identity Refund FraudStolen 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.
Defense Counsel: Christopher Patella Esq., Bayonne, New Jersey
Senatore 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.
After receiving the refund checks, Senatore and others caused the checks to be cashed at check cashing institutions, and then causing the proceeds to be divided among the conspirators.
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.
In addition to the prison term, Judge Cecchi sentenced Senatore to three years of supervised release and fined him $6,000.
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 Srinivasan Herman, Zach Intrater and Danielle Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
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Operators of Healthcare Company Convicted of Fraud and KickbacksRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that IMEH U. EBERE, age 55, of Baton Rouge, Louisiana, and SHEILA R. HIVES, age 51, of Baker, Louisiana, have each been convicted of health care fraud offenses in connection with their roles at Golden Medical Equipment & Supply, Inc. (“Golden”), a Baton Rouge-based company that provided durable medical equipment in the Baton Rouge area since 2003.
In 2012, a federal grand jury indicted EBERE and HIVES, charging them with a variety of offenses arising out of a fraudulent scheme through which EBERE and Golden submitted false reimbursement claims to Medicare for enteral nutrition that Golden had purportedly provided to Medicare beneficiaries. Enteral nutrition is designed for individuals who suffer from health conditions that prevent food from reaching the digestive tract, therefore preventing the individuals from maintaining their weight and strength. Enteral nutrition is administered via a feeding tube.
Yesterday, on July 29, 2014, EBERE pled guilty before Chief U.S. District Judge Brian A. Jackson to conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349. EBERE faces up to ten (10) years in federal prison and a fine of $250,000, or twice the gross gain or gross loss derived from her offense. EBERE will also be required to forfeit the proceeds of her crime. In her plea agreement with the United States, EBERE admitted that, through her company, she submitted numerous fraudulent claims to Medicare for enteral nutrition related products that she had purportedly provided to Medicare beneficiaries, even though the beneficiaries did not have feeding tubes and therefore did not need enteral nutrition and did not qualify for it. EBERE admitted that, from September 2003 through November 2011, through Golden Medical, she submitted approximately $800,000 in enteral nutrition related claims alone. Judge Jackson scheduled EBERE’s sentencing for November 20, 2014.
On July 23, 2014, HIVES pled guilty before Chief Judge Jackson to receiving health care kickbacks, in violation of Title 18, United States Code, Section 1320a-7b(b)(1)(A). HIVES faces a maximum possible sentence of five (5) years in prison and a fine of $250,000. HIVES will also be required to forfeit the proceeds of her crime. In her plea agreement, HIVES admitted that she received illegal kickbacks from EBERE to induce HIVES to refer Medicare beneficiaries to EBERE and Golden Medical. Judge Jackson scheduled HIVES’s sentencing for November 7, 2014.
The case was investigated by the Office of Inspector General for the U.S. Department of Health and Human Services (DHH-OIG), the Federal Bureau of Investigation (FBI), and the Medicaid Fraud Control Unit of the Louisiana State Attorney General’s Office (MFCU), and was brought as part of the Medicare Fraud Strike Force, under the supervision of the United States Attorney’s Office and the Fraud Section of the Criminal Division of the U.S. Department of Justice. This case is being prosecuted by Assistant U.S. Attorney Shubhra Shivpuri, with assistance from DOJ Trial Attorney Dustin M. Davis.
Nixa Man Pleads Guilty to Producing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today a Nixa, Mo., man has pleaded guilty in federal court to producing child pornography.
Michael John Kinney, 40, of Nixa, pleaded guilty before U.S. Magistrate Judge David P Rush on Tuesday, July 29, 2014, to one count of producing child pornography and one count of possessing child pornography. Kinney was taken into federal custody at the conclusion of yesterday’s plea hearing.
By pleading guilty, Kinney admitted that he used a minor victim to produce child pornography between Jan. 27, 2007, and Jan. 26, 2009. Kinney also admitted that he was in possession of child pornography on April 29, 2011.
Federal agents executed search warrants at Kinney’s home and business addresses and seized two laptop computers from his home. Investigators discovered 10 videos of child pornography that were made from a hidden camera in Kinney’s home and additional videos and images of child pornography, including children under the age of six engaged in acts of sexual intercourse with adults or other children. Investigators also discovered numerous images of child erotica, including a child victim in various stages of undress. Kinney must forfeit those computers to the government.
Under the terms of Kinney’s plea agreement, the government will recommend a sentence of 15 years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI, IRS-Criminal Investigation and the Christian County, Mo., Sheriff’s Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Newark Man Sentenced to More Than 18 Years in Prison for 14 Armed Robberies of New Jersey StoresRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 225 months in prison for committing 14 armed robberies of commercial establishments throughout Union, Essex, Hudson and Bergen counties, U.S. Attorney Paul J. Fishman announced.
Jamar Darby, aka “Rhino,” 27, previously pleaded guilty to two counts of an indictment charging him with conspiracy to commit Hobbs Act robberies and with brandishing a firearm during one of those robberies. U.S. District Judge William H. Walls imposed the sentenced today in Newark federal court.
According to documents filed in this case and statements made in court:
Darby conspired with others to rob these commercial establishments:
Pao Da Terra
Newark
Dec. 29, 2012
Newark
Jan. 20, 2013
Newark Community Pharmacy
Newark
Jan. 24, 2013
Linden Stationary
Linden
Feb. 1, 2013
Delta Gas Station
Newark
Feb. 1, 2013
Shoppers Express
Belleville
Feb. 2, 2013
Krauszers
Kearny
Feb. 10, 2013
Krauszers
Bloomfield
Feb. 13, 2013
Pat’s Deli
Newark
Feb. 19, 2013
Smashburger
Paramus
March 16, 2013
Krauszers
Bloomfield
March 29, 2013
South Wood Discount Liquor
Linden
April 17, 2013
Newark Community Pharmacy
Newark
May 1, 2013
Subway Restaurant
Verona
May 20, 2013
Darby and his conspirators robbed each establishment at gunpoint, stealing cash, cigarettes and other items. In 13 of the 14 robberies, they used zip ties or duct tape to restrain their victims. During the Pat’s Deli robbery on Feb. 19, 2013, Darby and a conspirator restrained several victims with duct tape after threatening one victim with a .45 caliber semi-automatic handgun.
In addition to the prison term, Judge Walls sentenced Darby to three years of supervised release and ordered restitution $73,324.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s guilty plea. He also thanked the Belleville, Bloomfield, Kearny, Linden, Maplewood, Newark, Paramus, Verona and West Orange police departments, along with the N.J. State Police and the Essex County Prosecutor’s Office, for their work on this case.
The government is represented by Assistant U.S. Attorneys Jamari Buxton and Rahul Agarwal of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Anthony C. Mack Esq., NewarkNatchitoches Man Sentenced to 60 Months in Prison for Cocaine, Meth DistributionRead the Press Release
SHREVEPORT, La. – A Natchitoches man was sentenced last week to 60 months in prison and three years of supervised release for his part in a cocaine and methamphetamine distribution operation in parts of northwest and southwest Louisiana, U.S. Attorney Stephanie A. Finley announced.
Michael R. Casson, 38, of Natchitoches, La., was sentenced on Friday by U.S. District Court Judge Elizabeth E. Foote, for one count of conspiracy to possess with intent to distribute crack cocaine and methamphetamine. According to evidence presented at the March, 12, 2014 guilty plea, law enforcement agents investigated Casson as part of a DEA Task Force investigation into cocaine and methamphetamine trafficking in Bossier, Caddo, Natchitoches, and Vernon parishes and the state of Texas in 2012 and 2013. Agents recorded Casson and another suspect discussing drug trafficking on several occasions. Casson later set up a sale of cocaine to the suspect in April of 2013.
Casson was indicted on August 28, 2013, along with Eric Hunter, 43, of Natchitoches; Marquis Williams, 28, and Melvin Bobby Morris Jr., 25, both of Leesville, La.; and Isaiah Golston III, 42, of Shreveport. Golston was sentenced to 21 months in prison on June 12, 2014. Hunter was sentenced to 100 months in prison, and Williams was sentenced to 35 months in prison on June 13, 2014. Morris was sentenced to 20 months in prison on July 23, 2014. They were also sentenced to three years of supervised release.
“My office, along with our federal, state and local partners, is committed to keeping our communities safe and will continue to prosecute those who distribute illegal narcotics,” Finley stated. “I hope those who choose to traffic understand that there are consequences when they pollute our communities with drugs.”
The defendants were prosecuted as part of OCDETF Operation Styrofoam Cookies. The Drug Enforcement Administration investigated the case. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Mortgage Fraud Conspirators Operating in the Charlotte Area Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Two defendants involved in a mortgage fraud conspiracy that targeted Charlotte-area homes were sentenced to prison late Tuesday, July 29, 2014, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Gregory D. Anderson, 47, of Kingstree, S.C. was sentenced to 15 years (180 months) in prison and his co-defendant Anthony C. Carrothers, 49, of Charlotte, was sentenced to 10 months. U.S. District Judge Max O. Cogburn, Jr. also ordered Anderson to serve three years of supervised release and Carrothers two years supervised release following their prison terms.
In August 2012, Anderson pleaded guilty to bank fraud conspiracy and bank fraud, HUD fraud, concealment of money laundering, and assaulting and causing bodily harm to a person assisting the United States. In October 2012, a federal jury found Carrothers guilty of bank fraud conspiracy and bank fraud.
U.S. Attorney Tompkins is joined in making today’s announcement by Nadine Gurley, Special Agent in Charge, Office of the Inspector General, Office of Investigation of the Department of Housing and Urban Development (HUD-OIG) and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division.
According to filed court documents and today’s sentencing hearings, from 2006 to 2009, the defendants were involved in a mortgage fraud conspiracy that generated over $1.7 million in fraudulent loans. Court records indicate that Anderson was the operator and promoter of the scheme and facilitated the conspiracy using a network of straw buyers, real estate professionals and mortgage loan processors, among others. Court records indicate that Anderson executed the scheme by purchasing homes at inflated prices, either in his name or in the name of “straw” buyers. Straw buyers are individuals who agree to purchase targeted properties in their names in exchange for a kickback. Court records indicate that some of Anderson’s straw buyers were individuals he recruited through his temporary employment agency.
According to court records, Anderson executed the scheme by arranging with the sellers to purchase their homes at inflated prices. Then, using fraudulent documents and false information on loan applications, he caused lenders to issue loans in Anderson’s name or in the straw buyers’ names at the inflated home prices. At closing, Anderson would profit by keeping the difference between the homes’ original and inflated prices.
According to filed documents and statements made in court, the proceeds sometimes went directly to Anderson after closing on a home. Other times, the money was funneled to Anderson through the shell “remodeling companies” Anderson had created solely for the purpose of perpetuating the scheme, according to court records. Additionally, as court records reflect, Anderson used other individuals, including Carrothers, who were willing use their own bank accounts in exchange for a kickback. Court documents show that Carrothers received approximately $1,000 for each of the fraudulent transactions in which he was involved. In all, over the course of the conspiracy Anderson obtained over $647,943 and three houses from the fraudulently obtained loans. The houses have been subsequently foreclosed. Carrothers received over $8,900 in kickbacks from Anderson for his role in the conspiracy.
In pronouncing the sentence, Judge Cogburn noted that Anderson’s offenses were especially aggravated by his past criminal record and his conduct in the charged scheme including being a leader/organizer of the scheme and recklessly endangering others in his attempt to flee arrest by Charlotte-Mecklenburg Police Department Officers, several of whom were injured attempting to arrest Anderson. Judge Cogburn ordered Anderson to pay restitution in the amount of $2,189,641.28. In sentencing CSarrothers, a former Charlotte fireman, Judge Cogburn accepted a joint recommendation from the defense and the government to sentence him to a lower term based on his acceptance of responsibility and work with disabled persons after his jury conviction on two felony counts. Carrothers was also order to pay $184,344.02 in restitution and to pay a forfeiture money judgment in the amount of $62,000.
A third named defendant, Maria Mejia Herrera, 45, of Rock Hill, S.C. pleaded guilty in August 2012 to one count of bank fraud conspiracy. Herrera was one of Anderson’s straw buyers and was sentenced to one year of probation in August 2013. She was also ordered to pay $632,289 as restitution.
Anderson has been in federal custody since April 2011. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Carrothers has been released on bond and will be ordered to self-report. Federal sentences are served without the possibility of parole.
The investigation was handled by HUD-OIG and FBI. U.S. Attorney Tompkins also thanked the Charlotte-Mecklenburg Police Department for the assistance in the case. The prosecution was handled by Assistant U.S. Attorneys Michael E. Savage and Jennifer L. Dillon, of the U.S. Attorney’s Office in Charlotte.
Mortgage Company Owner Sentenced to over 3 Years in Prison in $1.3 Million Fraud SchemeRead the Press Release
Falsified Home Buyers’ Information to Generate Fraudulent Loan Applicationsin Order to Collect Commissions, Origination and Broker’s Fees
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Shola Risikat Balogun, age 48, of Upper Marlboro, today to 37 months in prison followed by three years of supervised release for conspiring to commit wire fraud in connection with a mortgage fraud scheme that she organized and managed which resulted in over $1.352 million of actual losses to mortgage lenders. Judge Messitte also entered an order that Balogun pay restitution and forfeit $1,352,378, the amount lost by mortgage lenders.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kathy A. Michalko of the United States Secret Service, Washington Field Office; Special Agent in Charge, A. Derek Evans, of the Federal Deposit Insurance Corporation Office of Inspector General; and Special Agent in Charge Cary A. Rubenstein of the Housing and Urban Development Office of Inspector General - Office of Investigations.
According to her plea, Balogun was a licensed mortgage broker and sole proprietor of Newgate Mortgage. Balogun and others contacted individuals who wished to purchase homes. The buyers typically had moderate to low incomes, and provided the conspirators with accurate income and employment information.
The conspirators then typically inflated the buyer’s income and created bogus employment information in an effort to qualify these individuals for loans that they otherwise were unqualified to secure. In some cases, no payments were made and the property went swiftly into default. In other cases, the borrowers attempted to make mortgage payments for a period of time until they could no longer make payments. Balogun and others profited from these fraudulent transactions by collecting origination fees, commissions, yield spread premiums and broker’s fees from each loan that closed. Balogun was a leader of the scheme.
Balogun admitted that as the result of Newgate brokering at least 20 fraudulent transactions, mortgage lenders lost $1,352,378.
Emeka Udeze, age 39, of Bowie, Maryland, a licensed mortgage broker who worked at Newgate and other companies, previously pleaded guilty to his participation in this conspiracy, as well as to a separate fraud scheme. Udeze’s sentencing has not yet been scheduled.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/priorities_financialfraud.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the U.S. Secret Service, FDIC and HUD-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Sujit Raman, who prosecuted the case.Mississippi Man, Dwayne E. Hupp, Admits to Committing Four Bank RobberiesRead the Press Release
U.S. Attorney Kenneth Allen Polite, Jr. announced today that DWAYNE E. HUPP, age 51, a resident of Bay St. Louis, Mississippi, pled guilty before the U.S. District Judge Kurt D. Engelhardt, to four counts of bank robbery.
According to court documents, HUPP admitted that he robbed the Liberty Bank on August 6, 2013 and on September 10, 2013; and the Crescent Bank and Trust on September 4, 2013 and September 19, 2013. Documents filed in the matter reveal that the defendant was tackled by the security supervisor and the facilities manager as he exited the bank after the last robbery. HUPP was held until the New Orleans Police Department (NOPD) and the Federal Bureau of Investigation (FBI) arrived on the scene. HUPP was questioned shortly thereafter by the FBI and admitted to robbing all four banks. When shown surveillance photographs of the robbery suspect in each of the four robberies, HUPP identified himself as the person in those photographs. HUPP admitted that he was a heroin addict and would regularly travel from Bay St. Louis, Mississippi to New Orleans to obtain heroin. In order to support his habit, HUPP began to rob local banks.
The maximum penalty for bank robbery is twenty years imprisonment and a $250,000 fine. Any term of imprisonment must be followed by a term of supervised release of three years. HUPP may face a maximum of life imprisonment as a result of his two prior convictions for armed robbery in Jefferson Parish. Sentencing is scheduled for November 5, 2014 at 9:00 am.
The case was investigated by the Federal Bureau of Investigation with the invaluable assistance of New Orleans Police Department. Assistant United States Attorneys Mark A. Miller and Michael M. Simpson are prosecuting the case.
(Download Factual Basis )
Mexican National Trafficking Cocaine Worth over $10 Million Is Sentenced to Life in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Frank D. Whitney sentenced Freddie Andaya, a/k/a “Raymond Garcia,” 42, of Mexico to serve life plus five years in prison on drug trafficking conspiracy, money laundering and gun charges, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by Brock D. Nicholson, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Sheriff Kevin L. Auten of the Rowan County Sheriff’s Office.
According to court documents and proceedings, Andaya was the leader of a drug conspiracy that operated in Mecklenburg, Iredell, Union and Rowan Counties and elsewhere between 2010 and August 2011, and trafficked more than 300 kilograms of cocaine, with a street value of over $10 million. Court records indicate that Andaya had a stash house in Concord, N.C., from which law enforcement seized 3.5 kilograms of cocaine, 62 kilogram-sized wrappers, $342,000 in cash and an AK-47 assault rifle. Law enforcement also recovered from the stash house notebook ledgers, which accounted for more than $9 million in drug transactions in just a three-month period, from April to July 2011. According to court records and today’s sentencing hearing, during the investigation law enforcement seized a total of 11 kilograms of cocaine, more than $600,000 in cash and three firearms. Also according to court records, during Andaya’s prosecution the defendant obstructed justice by threatening a co-defendant and by producing false exculpatory documents to authorities.
Andaya has been in custody since his arrest in August 2011. He was indicted on federal charges in January 2012 and pleaded guilty in March 2012 to drug trafficking conspiracy, money laundering and possession of a firearm in furtherance of drug trafficking. Andaya will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
This prosecution is part of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation that has resulted in the conviction of 14 defendants for cocaine trafficking, money laundering, and firearms violations. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and it is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In addition to Andaya, the following prosecutions stem from the same investigation:
• Marlon Twain Scott (3:11-cr-363) – Sentenced to 120 months in prison, followed by 5 years of supervised release.
• Brandon Antowine Barnette (3:12-cr-20) – Sentenced to 37 months in prison, followed by 2 years of supervised release.
• Juan Antonio Molina-Sanchez (3:12-cr-25) – Sentenced to 57 months in prison, followed by 3 years of supervised release.
• Bautista Medrano Andaya (3:12-cr-27) – Sentenced to 210 months in prison, followed by 5 years of supervised release.
• Luis Alberto Castrejon (3:12-cr-28) – Sentenced to 180 months in prison, followed by 5 years of supervised release.
• Vonita Alberto Mondragon (3:12-cr-29) – Sentenced to 50 months in prison, followed by 2 years of supervised release.
• Freddie Delgado-Mercado (3:12-cr-31) – Sentenced to 78 months in prison, followed by 3 years of supervised release.
• Levaric Samuel Johniken (3:12-cr-34) – 168 months imprisonment followed by 5 years of supervised release.
• Eric Lewis Feimster (3:12-cr-38) – Sentenced to 108 months in prison, followed by 3 years of supervised release.
• Matthew Thomas Jones (3:12-cr-48) – Sentenced to 211 months in prison, followed by 5 years of supervised release.
• Lloyd Avery Allen (3:12-cr-88) – Sentenced to 78 months in prison, followed by 5 years of supervised release.
• Christopher Cortez Coleman (3:12-cr-140) – Sentenced to 108 months in prison, followed by 4 years of supervised release.
• Jorge Molina-Sanchez (3:12-cr-316) – Pending sentencing.The investigation was led by HSI and Rowan County Sheriff’s Office. U.S. Attorney Tompkins also thanked the Sheriff’s Offices for Cabarrus, Iredell, Union and Mecklenburg Counties and the Charlotte-Mecklenburg Police Department for their assistance with the investigation. Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Massachusetts Man Convicted of Failure to Pay Child Support and Drug ChargeRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jay
Dandreo, 52, of Lynn, Massachusetts, was convicted yesterday after a two-day jury trial in U.S.
District Court in Portland of willfully failing to pay child support and possession with the intent to manufacture or distribute marijuana.According to evidence introduced at trial, in May 2004, the Maine Department of Health
& Human Services (MDHHS) ordered Dandreo to pay for the support of his four minor children.
Between May 2004 and November 2013, Dandreo knowingly and intentionally failed to make any child support payments, resulting in an unpaid obligation of about $70,000. In August 2012, Maine Drug Enforcement Agency (MDEA) investigators searched property located in Limerick, Maine owned by Dandreo’s father and seized marijuana plants growing at several locations on the property, as well as drug distribution paraphernalia and several firearms.
Dandreo faces up to two years in prison and a $250,000 fine on the child support charge and up to 5 years in prison and a $250,000 fine on the drug charge. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.The investigation was conducted by the U.S. Department of Health & Human Services, Office of Inspector General; MDHHS, Office of Family Independence, Division of Support
Enforcement & Recovery; and MDEA.Manhattan U.S. Attorney Announces Charges Against Supplier of “Molly” That Resulted in A Death at Electric Zoo ConcertRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and James J. Hunt, Acting Special Agent in Charge, Drug Enforcement Administration (“DEA”), New York Division, announced today that PATRICK MORGAN was arrested this morning in Buffalo, NY on narcotics distribution and narcotics conspiracy charges. MORGAN is expected to be presented later today in the Western District of New York before United States Magistrate Judge Hugh B. Scott.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Patrick Morgan sold drugs that, far from enabling a good time, resulted in tragedy with the death of Jeffrey Russ. It bears repeating that every time people use drugs like “Molly” they are rolling the dice with their own lives, which is a foolish and senseless wager.”
DEA Acting Special Agent-in-Charge James J. Hunt said: “Synthetic drugs such as ‘Molly’ are extremely dangerous and have grown increasingly more popular at events such as music festivals. Those who ingest it, even if for the very first time, are putting themselves at risk because they have no idea what they are putting into their bodies. DEA and our law enforcement partners will continue to investigate any and all drug trafficking organizations that place lives at risk by selling these dangerous substances.”
The following allegations are based on the Complaint unsealed in Manhattan federal court:
In early August 2013, PATRICK MORGAN sold pills commonly called “Molly,” which contained 4-methylenedioxymethaphetamine (MDMA) and 3,4-methylenedioxymethcathinone (methylone), to three individuals (the “Three Individuals”), including Jeffrey Russ, for their use at an electronic music concert in Buffalo, New York.
In mid-August 2013, the Three Individuals pooled their money in order to buy additional Molly pills from MORGAN. The Three Individuals intended to consume and distribute these Molly pills at the Electric Zoo music festival. Electric Zoo was a three-day, outdoor electronic music festival on Randall’s Island, New York, scheduled to be held from August 30, 2013 through September 1, 2013. Attendance at Electric Zoo was estimated to be over 130,000 people.
In mid-August 2013, MORGAN sold one of the Three Individuals approximately 80 Molly pills that MORGAN was told the Three Individuals intended to consume and distribute at Electric Zoo.
On August 30, 2013, the Three Individuals, including Jeffrey Russ, attended Electric Zoo and consumed some of the Molly pills that were purchased from MORGAN. Toward the end of the concert on August 30, 2013, Russ collapsed and had a seizure. Russ was treated by emergency medical technicians on Randall’s Island and ultimately taken to Harlem Hospital. When Russ arrived at Harlem Hospital, he was unresponsive. On August 31, 2013, at approximately 3:21 a.m., Russ died at Harlem Hospital from acute intoxication by the combined effect of MDMA and methylone with hyperthermia.
MORGAN, 23, of Buffalo, New York, is charged with one count of conspiring to distribute narcotics, and one count of distributing narcotics, each of which carries a maximum term of 20 years in prison.
Mr. Bharara praised the investigative work of the Drug Enforcement Administration.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorney Joshua A. Naftalis of the Narcotics Unit is in charge of the prosecution.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Patrick Morgan Complaint
Manhattan U.S. Attorney and FBI Assistant Director in Charge Announce Commodities Fraud and Related Charges Against Principals of Commodities Trading PoolRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), yesterday announced the unsealing of commodities fraud, securities fraud, wire fraud, and conspiracy charges against MICHAEL JAMES SEWARD, president of the now-defunct, unregistered commodities trading pool SK Madison Commodities, LLC (“SK Madison”). As alleged, SEWARD and his former business partner, YAN KAZIYEV, a/k/a “Ian Kaziyev,” convinced investors to part with approximately $1.3 million under false pretenses, and then pocketed approximately $700,000 of those funds for themselves. SEWARD is currently detained in Pinellas County, Florida on unrelated state felony charges.
Also unsealed yesterday were identical charges against KAZIYEV, as well as KAZIYEV’s June 25, 2014 guilty plea, pursuant to a cooperation agreement, to all counts, before the Honorable Paul A. Crotty.
Manhattan U.S. Attorney Preet Bharara said: “Yan Kaziyev and, as alleged, Michael Seward fraudulently convinced investors to put their money into an unregistered commodities trading pool, and then used that money for their personal gain. This case shows that investors should be aware of the potential for fraud in commodities trading pools, as they should be in any other securities investment.”
Assistant Director in Charge George Venizelos said: “Like we’ve seen time and time again, the defendants cooked up a scheme to defraud unwitting investors. Under the guise of a profitable commodity trading pool and an investment in a social media company, the defendants failed to do anything except steal from those who trusted them. Today the game is up. The defendants find themselves on the wrong side of the law and charged in Manhattan Federal Court.”
According to the allegations in the Indictment against SEWARD and the Information against KAZIYEV unsealed today:
From July 2011 through May 2013, SEWARD and KAZIYEV, through SK Madison, engaged in a scheme to defraud over 20 individuals by convincing them to invest approximately $1.3 million into the unregistered commodities pool they were operating. To lure investors, SEWARD and KAZIYEV made false representations about the success of their pool and, in some cases, about the very nature of the investments they were soliciting.
For example, from around July 2011 to around October 2011, SEWARD and KAZIYEV convinced two investors to pay approximately $330,000 to an entity called SK Madison Partners (“SKM Partners”), which these investors understood would be purchasing stock in an Internet social media company. SEWARD, KAZIYEV, and another individual took hefty “commissions” for themselves out of the funds and invested the remainder not in any Internet social media company but in the SK Madison commodities trading pool. From there, SEWARD and KAZIYEV withdrew yet more of funds for their own benefit.
To those investors who knew they were investing in SK Madison’s commodities pool, SEWARD and KAZIYEV lied about the success the pool had enjoyed. They mailed and emailed false “track record” reports reflecting purported trading profits in most months from August 2011 through dates in 2012 and 2013. These profit figures were fictitious, even for those months in which the SK Madison pool had turned a profit, the amount of profit bore no relationship to the figure reported in the “track record.” And the “track record” reports reflected trading profits in months in which the pool had in fact suffered significant trading losses. Similarly false profit figures were published to investors through monthly account statements.
In or about the spring and summer of 2013, when confronted by members of the National Futures Association (“NFA”) and the Commodity Futures Trading Commission (“CFTC”) with their large withdrawals from SK Madison’s trading and bank accounts for their own benefit, SEWARD and KAZIYEV sought to justify the withdrawals by citing “commissions” of either $55 or $110 per transaction that SK Madison purportedly had charged for operating the commodities pool. In fact, although SK Madison’s prospectus alerted investors that a $55 commission would be levied per completed transaction, the withdrawals that SEWARD and KAZIYEV made and caused to be made from the accounts bore no relationship to the number of trades effectuated in the accounts, and far exceeded what might have been calculated using the $55 commission figure.
SEWARD, 35, of Largo, Florida, and KAZIYEV, 36, of Queens, New York, are both charged with commodities fraud, securities fraud, wire fraud, and conspiracy to commit commodities, securities, and wire fraud. The conspiracy count carries a maximum sentence of five years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense. The securities fraud charge carries a maximum sentence of 20 years in prison and a fine of the greater of $5 million or twice the gross gain or loss from the offense. The commodities fraud charge carries a maximum sentence of 10 years in prison and a fine of the greater of the costs of the prosecution plus $1 million or twice the gross gain or loss from the offense. The wire fraud charge carries a maximum sentence of 20 years in prison and a fine of the greater of $250,000 or twice the gross gain or loss from the offense.
Mr. Bharara praised the investigative work of the FBI and thanked the CFTC, which has filed civil charges in a separate action. Mr. Bharara also thanked the NFA for its assistance in this investigation.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Sarah E. McCallum is in charge of the prosecution.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
CFTC v. SK Madison Yan Kaziyev Information
CFTC v. SK Madison Michael Seward IndictmentMan from Dominican Republic Sentenced in White Plains Federal Court for Identity Theft and Failure to Register as A Sex OffenderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that RAFAEL CEPEDA, a man originally from the Dominican Republic, was sentenced yesterday in White Plains federal court to 42 months in prison for making false claims of United States citizenship, failing to register as a sex offender, and aggravated identity theft. CEPEDA was also ordered to be removed from the United States. CEPEDA pled guilty on March 18, 2014. He was sentenced by U.S. District Judge Cathy Seibel.
According to documents filed in this case and statements made in court:
For over 20 years, CEPEDA lived under an illegally assumed identity as a person who was a U.S citizen, when in fact CEPEDA was never a U.S. citizen. CEPEDA even served multiple prison sentences under the assumed identity. Among CEPEDA’s past crimes was a 2008 conviction in New York for Attempted Course of Sexual Conduct Against a Child, for which he was sentenced to two-to-four years in prison. As a result of this conviction, CEPEDA was required to register as a sex offender for life. Nevertheless, in 2013, CEPEDA moved from the State of New York to Hartford, Connecticut, and failed to register as a sex offender in Connecticut.
Also, in 2010, CEPEDA applied for a U.S. passport using the assumed identity of a true U.S. citizen, as well as a birth certificate and New York State ID card.
In addition to the prison term, CEPEDA, 52, of Hartford, Connecticut, was also sentenced to five years of supervised release, and was ordered to be removed from the United States upon completion of his sentence.
Mr. Bharara praised the investigative work of the U.S. Immigration and Customs Enforcement’s (“ICE”) Enforcement and Removal Operations (“ERO”), the U.S. Department of State, Bureau of Diplomatic Security, and the U.S. Marshals Service.
The case is being handled by the Office’s White Plains Unit. Assistant United States Attorney Daniel P. Filor is in charge of the prosecution.
Man Charged with Las Vegas Casino RobberyRead the Press Release
LAS VEGAS, Nev. – Federal charges have been filed against a man for robbing a Las Vegas bank on July 22 and a Las Vegas casino cashier’s cage on July 25, 2014, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
John Doe, also identified as Scott Carmitchel, is charged in a criminal complaint with one count of armed bank robbery and one count of interference with commerce by robbery, and is scheduled for an initial appearance at 3:00 p.m. on Thursday, July 31, 2014, before U.S. Magistrate Judge Peggy A. Leen.According to the complaint, at about 8:55 a.m. on July 22, 2014, the defendant allegedly entered a bank on E. Tropicana Boulevard and used a gun with an orange tip to rob a teller. Three days later, on July 25, 2014, at about 8:15 p.m., the defendant allegedly approached the main cashier cage at the casino and used a gun with an orange tip to rob a teller. An investigation led to the apprehension of the defendant on July 27, 2014, in a room at another casino in Las Vegas. Law enforcement investigators recovered a large amount of money and a 6mm BB gun with an orange tip from the hotel room.
The case is being investigated by the FBI and Las Vegas Metropolitan Police Department, and is being prosecuted by Assistant United States Attorney Robert A. Knief.
The public is reminded that a criminal complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.Loan Officer Pleads Guilty to Conspiracy to Commit Wire FraudRead the Press Release
KNOXVILLE, Tenn. – On July 29, 2014, Paulynn Wright, 42, of Knoxville, Tenn., pleaded guilty in U.S. District Court for the Eastern District of Tennessee at Knoxville, to conspiracy to commit wire fraud. Sentencing has been set for 2:00 p.m., on Dec. 3, 2014, before the Honorable Thomas A. Varlan, Chief U.S. District Judge.
Wright faces a potential term of up to 20 years in prison, along with the forfeiture of any proceeds of the offense and the obligation to pay restitution.
In a plea agreement on file with the U.S. District Court, Wright admitted to conspiring with co-defendants Joyce Allen, Kay Thomas and Dona Rector to obtain a mortgage loan by providing false information to a lender. This information consisted of an asset verification letter from Allen that falsely stated that Wright had an investment with Benchmark Capital.
The indictment against Wright was the result of an investigation by the Internal Revenue Service, U.S. Postal Inspection Service, and Federal Bureau of Investigation. Assistant United States Attorney Frank M. Dale, Jr. represents the United States.
Lingerie Business Owner Sentenced to Federal Prison for BriberyRead the Press Release
ATLANTA – Jae Jun Bae has been sentenced to one year and one day in prison for offering bribes to Doraville employees in exchange for a zoning modification.
“Bae tried to buy his way around zoning restrictions by offering bribes to Doraville employees,” said United States Attorney Sally Quillian Yates. “As anticipated, those employees reported Bae’s conduct and assisted law enforcement authorities to bring him to justice. Bae opened his wallet looking to circumvent the law. What he found was a felony conviction and a prison cell.”
“Doraville Police Department is dedicated to ensuring the integrity of the city government,” said Doraville Police Chief John King. “Our message is don't bring your corruption or bribery attempts to Doraville or you will face prosecution. We would like to thank the U.S. Attorney's office and the FBI for helping us maintain this integrity and ensuring the proper sentence for Mr. Bae.”
According to United States Attorney Yates, the charges, and other information presented in court: Bae is the owner of Moon Lingerie, a lingerie business located in Doraville, Ga. In April 2012, Bae bought a commercial building located on Buford Highway in Doraville, Ga. At the time of the purchase, the property was zoned for retail use and could not be used as a wholesale location as Bae wanted. In August 2012, Bae met with an employee of the City of Doraville and attempted to give the employee an envelope of cash, in an effort to have the Buford Highway property re-zoned. The employee did not take the envelope and reported Bae’s attempt to local law enforcement authorities.
In October 2013, Bae asked to meet with a member of Doraville’s Community Development Department. Based on the allegations from August 2012, the staff member (SM) reported Bae’s request for a meeting to law enforcement authorities and agreed to cooperate with them. Thereafter, the FBI and the Doraville Police Department conducted a series of undercover operations involving Bae. In particular, on October 17, 2013, Bae met with the SM and an undercover officer (UC), who was posing as a member of Doraville’s Community Development Department. During the meeting, Bae agreed to pay approximately $100,000 to have the Buford Highway property re-zoned to permit wholesale uses. On October 18, 2013, Bae met with the UC and re-negotiated the price to obtain a wholesale re-zoning from $100,000 down to $70,000. On October 29, 2013, Bae made a $5,000 payment to the SM as a deposit to get the Buford Highway property re-zoned. On the next day, Bae gave the UC a $3,000 payment, which the UC said would secure a vote in favor of Bae’s re-zoning application. On November 14, 2013, the FBI arrested Bae.
On April 3, 2014, Bae, 35, of Duluth, Ga., pleaded guilty to one count of honest services wire fraud. He was sentenced to one year and one day in prison to be followed by three years of supervised release, ordered to pay a $1,000 fine, and to serve 200 hours of community service.
This case was investigated by the Federal Bureau of Investigation and the Doraville Police Department.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Erin Sanders prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Lincoln Man Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
On July 28, 2014, an Indictment was unsealed charging Jason Michael Leatherwood, 41, of Lincoln, with conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture or substance containing methamphetamine between about October of 2012 and January of 2014. The possible penalty is not less than 10 years, nor more than life imprisonment, a fine of up to $10,000,000, and a term of supervised release following any prison sentence of at least five years.
Leatherwood had an initial appearance in federal court in Lincoln on July 29, 2014. Trial was scheduled to begin on September 30, 2014, and Leatherwood was released on conditions.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lee's Summit Soccer Coach pleads Guilty to Attempting to Produce Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. B Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Lee’s Summit, Mo., youth soccer coach pleaded guilty in federal court today to attempting to produce child pornography by secretly videotaping members of his soccer team.
Joel D. White, 40, of Lee’s Summit, pleaded guilty before U.S. District Judge Dean Whipple to three counts of attempting to produce child pornography.
White, who coached a girls under-12 soccer team and a girls under-15 soccer team through the Lee’s Summit Soccer Association, remains in federal custody. The Lee’s Summit Soccer Association has cooperated fully with law enforcement officers during this investigation.
White admitted that he videotaped 11 child victims without their consent while they were changing clothes in his daughter’s bedroom at his residence. White videotaped the child victims 10 to 15 times without their consent from approximately May 2012 until October 2012, when the victims were between 11 and 12 years of age. White also admitted that he touched one of the child victims on the breast with his hand and mouth while she was sleeping at his residence, and that he recorded this touching.
White is clearly identified in the videos setting up the camera and recovering the camera after the child victims leave the room. In one video, as White recovers the camera, he looks into the camera and gives himself two “thumbs up.”
Under Department of Justice guidelines, the attempted production of child pornography is ordinarily charged in cases that involve surreptitious recordings. The statutory penalties for producing child pornography are the same as the penalties for attempting to produce child pornography.
The investigation began when White was arrested for stealing in Commerce City, Colo. In March 2013 the soccer stadium in Commerce City was hosting a world cup qualifying game. Colorado authorities contacted White at the stadium when he was accused of stealing soccer-related items and merchandise from the stadium. Officers searched White as well as his backpack, camera, vehicle and hotel room. Officers located stolen items in White’s possession and in his hotel room and White was arrested for felony stealing. White’s cameras, computer and computer media were recovered during the course of the stealing investigation.
Detectives wanted to investigate the possibility that White was placing advertisements on sites such as “Craigslist” to sell the stolen items. They began reviewing the cameras and computer media and observed a video of a minor female changing clothes in what appeared to be White’s Lee’s Summit residence. Commerce City police officials then contacted the Lee’s Summit, Mo., Police Department to take the lead on the child pornography investigation.
Under federal statutes, White is subject to a mandatory minimum sentence of 15 years in federal prison without parole on each of the three counts of conviction, up to a sentence of 30 years in federal prison without parole on each of the three counts, plus a fine up to $250,000 on each count and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Commerce City, Colo., Police Department.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Justice Department Seeks to Shut Down Detroit Area Tax Return PreparersRead the Press Release
The Justice Department announced today that it has asked a federal court in Detroit to permanently bar Brandon Lee and Tamika Lee, a husband and wife who do business as Quick Money Tax & Loan Center, from preparing federal tax returns. The civil injunction suit alleges that the Lees falsify income on customers’ tax returns in order to claim false and inflated earned income tax credits (EITC).
The EITC is a refundable credit available to people who work and earn less than $51,567 per year. The maximum credit in 2010 was $5,666. Due to the method used to calculate the EITC, some people are entitled to a larger credit with a higher annual income. Some tax preparers refer to the range of earned income generating a maximum EITC as the “sweet spot.” According to the complaint, the Lees reported fabricated “Household Help” income and reported fake business income and expenses on their customers’ tax returns to report income in the EITC sweet spot on some returns they prepared. The complaint alleges that 99 percent of the returns identified by the Internal Revenue Service (IRS) as having been prepared by the Lees and their business in 2010 and 2011 claimed a refund, which is an extremely high rate.
The complaint also alleges that the Lees prepare returns for customers that falsely claim education credits, even though the customers did not attend school or have qualifying education-related expenses, and were thus ineligible for the credit.
Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Brandon T. Lee, et al.
Complaint for Permanent Injunction and Other ReliefJustice Department Requires Divestiture in Landmark Aviation's Acquisition of Ross AviationRead the Press Release
The Department of Justice announced today that it will require Landmark Aviation to divest fixed base operator assets (FBOs) used to provide flight support services to general aviation customers at Scottsdale Municipal Airport, in Arizona, in order to proceed with its $330 million acquisition of Ross Aviation. The department said that without the required divestiture, the transaction would have combined the only two FBOs serving general aviation customers at Scottsdale Municipal Airport, resulting in higher prices and lower quality of services.
The Justice Department's Antitrust Division filed a civil lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns alleged in the lawsuit.
“Today’s proposed settlement will help ensure that FBO general aviation customers at Scottsdale Municipal Airport will continue to receive the benefits of vigorous competition,” said Bill Baer, Assistant Attorney General in charge of the Antitrust Division. “Without the divestiture secured by the Antitrust Division, the proposed acquisition would have eliminated competitive constraints at the Scottsdale airport and likely would have resulted in higher prices for consumers.”
FBOs provide fuel and related support services to general aviation customers, which include charter, private and corporate aircraft operators. Landmark and Ross are the only two providers of FBO services at Scottsdale Municipal Airport. The proposed transaction would have resulted in a monopoly for FBO services at Scottsdale Municipal Airport, and that loss of competition likely would have resulted in higher prices and a lower quality of services.
Under the terms of the proposed settlement, Landmark must divest Ross’s FBO assets at Scottsdale Municipal Airport to either Signature Flight Support Corp. or another buyer approved by the Antitrust Division.
LM U.S. Corp Acquisition Inc. (doing business as Landmark Aviation), a Delaware corporation with its headquarters in Houston, is owned by The Carlyle Group. Landmark Aviation operates more than 40 FBO facilities in the United States, including its FBO operations at Scottsdale Municipal Airport.
Ross, a Delaware corporation with its headquarters in Denver, is a subsidiary of Genossenschaft Constanter, a Swiss company. Ross owns and operates 19 FBO facilities in the United States, including its FBO operations at Scottsdale Municipal Airport.As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to William H. Stallings, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 8000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed final judgment upon finding that it is in the public interest.
Justice Department Files Statement of Interest in Ohio Voting Rights CaseRead the Press Release
Attorney General Eric Holder announced today that the Justice Department has submitted filings in voting rights cases in Wisconsin and Ohio. The department’s involvement in these two cases represents its latest steps to enforce the remaining parts of the Voting Rights Act against restrictive state laws, following up on the department’s lawsuits last year against similar measures in Texas and North Carolina.
In the Wisconsin case, the department filed an amicus brief in Frank v. Walker and LULAC v. Deininger, supporting an earlier ruling by the U.S. District Court for the Eastern District of Wisconsin that struck down Wisconsin’s strict photo voter identification requirement due to its effects on minority voters under Section 2 of the Voting Rights Act , and because it unduly burdens a substantial number of voters in violation of the Fourteenth Amendment. In the Ohio case, the department filed a statement of interest in NAACP v. Husted, a challenge by a civil rights group to a state law curtailing early voting and same day registration. The department’s brief contests the state of Ohio’s incorrect interpretation of the standards set forth by Section 2 of the Voting Rights Act.
“These filings are necessary to confront the pernicious measures in Wisconsin and Ohio that would impose significant barriers to the most basic right of our democracy,” said Attorney General Eric Holder. “These two states’ voting laws represent the latest, misguided attempts to fix a system that isn’t broken. These restrictive state laws threaten access to the ballot box. The Justice Department will never shrink from our responsibility to protect the voting rights of every eligible American. And we will keep using every available tool at our disposal to guard against all forms of discrimination, to prevent voter disenfranchisement, and to secure the rights of every citizen.”
In the amicus brief filed today in the U.S. Court of Appeals for the Seventh Circuit, the department argues that the district court reached the correct decision by finding that Wisconsin’s voter ID law, known as Act 23, violated the Fourteenth Amendment, because it imposes unjustified burdens on a significant number of voters, and violated Section 2 of the Voting Rights Act, because it has a discriminatory result on African-American and Hispanic voters. In addition to finding that Act 23 would result in minority voters having less opportunity to participate in the political process relative to other members of the electorate, the court found that the state’s claimed interests in combating voter fraud and promoting electoral confidence did not justify the significant burdens Act 23 imposes on substantial numbers of voters who lack a qualifying ID.In the statement of interest filed today in U.S. District Court for the Southern District of Ohio, the department makes clear that Section 2 prohibits the state of Ohio from imposing any voting qualification, prerequisite to voting, or any standard, practice or procedure that would result in the denial or abridgement of the right to vote on account of a person’s race, color or membership in a language minority group. The filing also makes clear that in its own filings in the case the state of Ohio has incorrectly interpreted its requirements under Section 2. The department did not take a position on any of the other claims in the case.
“The United States Department of Justice today affirms its clear position that, under Wisconsin’s Act 23, minority voters have less opportunity to participate in the political process,” said James L. Santelle, United States Attorney for the Eastern District of Wisconsin. “The amicus brief that we are filing not only supports the trial court’s findings but also reflects the department’s continuing focus on ensuring that the franchise remains fully available to all qualified voters.”
“Wisconsin's proud history is one of expanding the opportunity to vote,” said John W. Vaudreuil, United States Attorney for the Western District of Wisconsin. “I'm honored to file this brief with the United States Department of Justice seeking to ensure that this great Wisconsin tradition is reaffirmed, and that every Wisconsin citizen has an equal opportunity to participate in democracy.”
“This office remains committed to preserving the rights of every Ohio voter,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio. “Making sure that courts continue to carefully examine voting restrictions, such as the ones recently imposed in this state, is an important part of that effort.”
In the year since the Supreme Court struck down the coverage formula that determined which jurisdictions were subject to preclearance underthe Voting Rights Act in Shelby v. Holder, Section 2 of the Voting Rights Act remains one of the department’s most powerful tools to protect voting rights. Last year the department used Section 2 to file two lawsuits against the state of Texas to stop the newly enacted discriminatory voter ID law and and to obtain a ruling that the state engaged in intentional discrimination in adopting its 2011 redistricting plans. In North Carolina, the department used Section 2 to sue to stop a number of provisions in an election law that imposes strict voter ID requirements, restricts early voting, eliminates same-day registration and refuses to count otherwise valid provisional ballots cast in the wrong precinct. The suit alleges that the challenged law was motivated by a racially discriminatory purpose and will result in African-American voters having less opportunity than other citizens to participate in the political process. All three cases are ongoing.
Jorge Gomez-Gonzalez, Aka “Cara De Truck” Sentenced to 30 Years in PrisonRead the Press Release
SAN JUAN, PR – Jorge Gómez-Gonzàlez, aka “Cara de Truck”, was sentenced to 30 years in prison by United States Senior District Court Judge Daniel Domínguez. Gómez-Gonzàlez was found guilty after a six-week long jury trial for conspiracy to possess with intent to distribute and to import controlled substances at La Perla Ward and other areas in Puerto Rico, announced United States Attorney Rosa Emilia Rodríguez-Vélez. While the Advisory Guidelines recommended a sentence of life imprisonment, the prosecutor did not request a life sentence, and the judge felt that the interests of justice were best met with a sentence of 30 years.
The object of the conspiracy was to distribute and supply controlled substances within La Perla Ward, and to supply heroin to numerous Public Housing Projects, municipalities and towns located within Puerto Rico for significant financial gain. The defendants and their co-conspirators would purchase wholesale quantities of heroin, cocaine, marijuana, Xanax and Percocet in order to distribute the same in street quantity amounts at their drug distribution points. The leaders would routinely give out “samples” of new batches of heroin or cocaine to users in order to test the “quality” of the drug and promote the sale of the product.
“The U.S. Attorney’s Office will continue working along with other law enforcement agencies to prosecute criminals who deprive our communities of a peaceful and safe environment,” said Rosa Emilia Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “I commend our prosecutors and investigative agencies who have demonstrated, once again, that our efforts continue to provide positive results to the community.”
This case is part of the Organized Crime Drug Enforcement Task Force (OCEDTF). The case was investigated by DEA, ICE, ATF and PRPD, and prosecuted by Assistant United States Attorneys George Massucco and Elba Gorbea.Jamaican Man Sentenced for Witness TamperingRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Junior Nathanial Ricketts, a native of Jamaica, who was convicted of tampering with a witness in order to prevent the witness from testifying against him at trial, was sentenced to time served (three years, 11 months) by Chief U.S. District Judge William M. Skretny.
“As has been said many times before, law enforcement does not tolerate any attempt to subvert the criminal justice system,” said U.S. Attorney Hochul.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that in July 2010, Ricketts, who was facing trial on other federal charges, sent a letter to a witness who was scheduled to testify at his trial. In the letter, the defendant accused the witness of lying about the witness’ identity. Ricketts also threatened that if the witness testified against him in court, the defendant would make sure the witness and the witness’ family went to jail.
The sentencing is the culmination of an investigation on the part of Officers with Immigration and Customs Enforcement, Office of Enforcement and Removal Operations under the direction of Field Office Director Michael T. Phillips.Interlachen Man Sentenced to More Than 7 Years for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan yesterday sentenced Franklin Stuart King (40, Interlachen) to 7 years and 6 months in federal prison for receiving child pornography over the Internet. He was also ordered to serve a life term of supervision and register as a sex offender upon his release from prison. King has been in the custody of the U.S. Marshals Service since his arrest on October 10, 2013.
According to court documents, an agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Jacksonville began an investigation to identify individuals in that area that had access to and/or were trading images and videos depicting child pornography over the Internet. Using specialized software, the agent determined that a host computer using an Internet Protocol (IP) address in Putnam County was hosting images of child pornography using a file-sharing program. The agent made a successful connection to this host computer over the Internet and downloaded several images that depicted child pornography.
Further investigation revealed that the subscriber information traced back to King’s residence in Interlachen. Subsequently, HSI agents and other officers executed a federal search warrant at King’s residence. Agents seized, among other things, King’s computer and other items of electronic media. A forensic analysis of King's computer media revealed that it contained a total of 808 images that featured the sexual abuse of minor children.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Jacksonville Sheriff’s Office, the Putnam County Sheriff’s Office, the Bradford County Sheriff’s Office, and the United States Marshals Service. It was prosecuted by Assistant United States Attorney D. Rodney Brown. It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Immigration Attorney Sentenced for Bribing an Immigration OfficialRead the Press Release
Baltimore, Maryland – U.S. District Judge William D. Quarles, Jr. sentenced attorney Kiran Dewan, age 60, of Woodbine, Maryland today to two years in prison, followed by three years of supervised release, for bribing a public official. Judge Quarles also ordered Dewan to forfeit $50,000.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief James W. Johnson of the Baltimore County Police Department; and District Director Gregory Collett of the U.S. Citizenship and Immigration Services (USCIS) Baltimore District Office.Dewan operated the Law Offices of Dewan and Associates, P.C., located at 7100 Security Boulevard in Windsor Mill, Maryland. He held himself out as having experience handling immigration matters and as a certified public accountant.
According to his plea agreement and court documents, from March 2011 to May 2013, Dewan conspired with clients, including Mohammad Khan, Narayan Thapa and Amjad Israr, to bribe an immigration official to provide immigration documents and benefits which would permit the clients to legally live and work in the United States. Unknown to Dewan and the clients, the immigration contact was actually an undercover agent posing as a public official. Dewan’s clients paid $170,000 in cash to Dewan to bribe the “public official,” of which Dewan kept $50,000. In return for the bribes, the purported public official provided green cards for the clients.
Additionally, in March 2011, Dewan offered to pay the purported public official $5,000 to have a foreign national removed from the United States. Dewan believed that the foreign national was going to start his own accounting business and compete with Dewan. The purported public official pretended to issue the notice to appear before an immigration judge, although in reality the USCIS had already decided to issue this notice independently. Dewan paid the $5,000 bribe in May 2011.
In the fall of 2011, Dewan offered to pay the purported public official another $5,000 to remove and add documents to the foreign national’s USCIS files. Dewan explained that he had previously submitted false tax returns to USCIS in support of the foreign national’s employment visa application and wanted those false tax returns replaced with new tax returns. In November, the purported public official pretended to provide the requested tax returns and Dewan subsequently paid the additional $5,000 bribe.
In 2012, Dewan spoke extensively about his knowledge of establishing an overseas hawala to transfer the purported public official’s alleged bribery profits. A hawala allows an individual to transfer money overseas using personal connections, without the money going through traditional government monitored means like money transfer services or banks. Dewan stated that he had previously used this hawala method for other clients, including a $400,000 transfer via a reverse hawala method.
Mohammad Khan, age 59, a citizen of Pakistan living in Baltimore who operated Pizza City in Brooklyn Park, Maryland, previously pleaded guilty to immigration fraud and was sentenced to a year and a day in prison.
Amjad Israr, age 47, a Pakistani citizen living in Cheshire, Connecticut, who operated many convenience stores in Connecticut, previously pleaded guilty to conspiring to bribe an immigration official in order to obtain lawful permanent residence (green card) and employment authorization documents. Judge Quarles sentenced Israr to 15 months in prison. Narayan Thapa, age 52, a citizen of Nepal residing in Baltimore, also pleaded guilty to his role in the conspiracy and awaits sentencing.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Baltimore County Police Department and USCIS Baltimore District Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Gregory R. Bockin, who prosecuted the case.
Idaho Resident Pleads Guilty to Social Security TheftRead the Press Release
BOISE - Melinda Sue Priddy, 43, of New Meadows, Idaho, pleaded guilty today to theft of $138,910.00 from the Social Security Administration, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Priddy’s grandmother died in May 2004. At the time of her death, Priddy’s grandmother was receiving survivor benefits from the Social Security Administration, which were being deposited on a monthly basis into a bank account held jointly with Priddy. No one notified Social Security of the death, and the Social Security Administration continued to make monthly deposits into the account. Priddy, who was not entitled to receive any of her deceased grandmother’s Social Security benefits, withdrew those funds from the account from July of 2004 through May of 2013 for her own personal use, stealing a total of $138,910.00 from the Social Security Administration.
The charge carries a maximum punishment of up to 10 years in prison, a fine up to $250,000, and a minimum term of three years of supervised release.
Sentencing is scheduled for October 20, 2014, before Chief U.S. District Judge B. Lynn Winmill in Boise.
The case was investigated by the Office of Inspector General for the Social Security Administration.
IceoPlex Owner Charged with Tax ViolationsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of tax violations, United States Attorney David J. Hickton announced today.
The 11-count indictment, returned on July 29, named Steven J Lynch, 59, as the sole defendant.
According to the indictment, between 2004-2011, Lynch impeded collection of payroll taxes under the Internal Revenue Code in connection with the operation of the IceoPlex at Southpointe, located in Canonsburg, Washington County. The indictment alleges that payroll taxes were underpaid by various business entities controlled by Lynch in the total amount of approximately $1 million during the years 2008-2010.
The law provides for a maximum total sentence of 53 years in prison, a fine of $2,750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney James Y. Garrett is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, Special Agent Paul Bauer conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Husband and Wife Arrested on Federal Fraud ChargesRead the Press Release
GREENSBORO, N.C. – Sandy and Casey Parsons were arrested today on a federal criminal indictment charging them with fraud, announced Ripley Rand, United States Attorney for the Middle District of North Carolina. The 76-count criminal indictment was unsealed today following the couple’s arrest by FBI and IRS-CI agents in Fayetteville, N.C.
The indictment alleges that, from February 2010 to August 2013, Sandy Parsons, 40, and Casey Parsons, 39, committed tax fraud, mail fraud, theft of government funds, and identity theft, and engaged in a conspiracy to defraud the government. The indictment alleges that the Parsons received government funded adoption assistance, Medicaid, Social Security, and Food and Nutrition Services benefits for a dependent that did not live with them and used the mail to commit the fraud. The indictment also alleges that Casey Parsons fraudulently used the identities of other persons as dependents and used other false information when preparing federal tax returns.
Sandy and Casey Parsons are charged with one count of conspiracy to defraud the government, which carries a maximum sentence of five years in prison and a $250,000 fine; twenty counts of theft of government funds, each of which carries a maximum sentence of five years in prison and a $250,000 fine; and twenty counts of mail fraud, each of which carries a maximum sentence of twenty years in prison and a $250,000 fine.
The indictment also charges Sandy Parsons with one count of aggravated identity theft, which carries a mandatory sentence of two years, consecutive to any other sentence, and a $250,000 fine; and one count of false statement to a government agency, which carries a maximum sentence of two years in prison and a $250,000 fine.
Casey Parsons is also charged with one count of false pretense in a health care matter, which carries a maximum sentence of five years in prison and a $250,000 fine; two counts of Social Security fraud, each of which carries a maximum sentence of five years in prison and a $250,000 fine; fifteen counts of aggravated identity theft, each of which carries a mandatory sentence of two years, consecutive to any other sentence, and a $250,000 fine; two counts of false statement to a government agency, each of which carries a maximum sentence of five years in prison and a $250,000 fine; six counts of aiding in the preparation of a false tax return, each of which carries a maximum sentence of three years in prison and a $250,000 fine; six counts of 2 wire fraud, each of which carries a maximum sentence of twenty years in prison and a $250,000 fine; and one count of making false claim against the government, which carries a maximum sentence of five years in prison and a $250,000 fine.
Sandy and Casey Parsons are scheduled to have their initial appearance at 2:30 p.m. today in U.S. District Court in Winston-Salem.
The case was investigated by the Rowan County Sheriff’s Office, the Federal Bureau of Investigation, and Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Anand Ramaswamy.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Houston Man Guilty of Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 23-year-old Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Christopher M. Carmon Thomas pleaded guilty to bank robbery on July 29, 2014 before U.S. Magistrate Judge Zack Hawthorn.
According to information presented in court, on June 3, 2014, Thomas entered the Wells Fargo Bank on Gladys Avenue in Beaumont, Texas and presented the bank teller with a demand note. During the robbery, Thomas displayed a gun tucked into his pants by lifting his shirt. Thomas fled the bank with $2,309.00. Surveillance camera photographs were disseminated by the media and Thomas was identified by citizen tipsters and the victim bank teller. Thomas was taken into custody in Houston on June 25, 2014.
Thomas faces up to 20 years in federal prison. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.
###Harrisburg Woman Sentenced to Prison for Making False Claims to the IRSRead the Press Release
The U.S. Attorney's Office for the Middle District of Pennsylvania announced that Stephanie A. Metz, age 25, of Harrisburg, Pennsylvania, was sentenced to serve a year in prison and pay $57,216.22 to the IRS for her role in a conspiracy to submit 33 fraudulent income tax returns to the IRS requesting $242,095 in fraudulent tax refunds for the years 2010 and 2011. U.S. District Court Judge Yvette Kane ordered that Metz surrender to the Bureau of Prisons on August 25, 2014 to commence serving her sentence.
According to U.S. Attorney Peter Smith, Metz provided a co-conspirator with addresses where the fraudulent income tax refund checks could be delivered by mail and was paid a fee for each refund check she delivered to her co-conspirator. For the tax years 2010 and 2011, Metz provided addresses for 33 fraudulent income tax returns requesting $242,095 in fraudulent tax refunds. The IRS paid out $57,216 to the co-conspirator before the scheme was detected in early 2012.
The investigation is part of a project known as Operation Mass Mail involving the filing of hundreds of thousands of false returns using stolen identity information of residents of Puerto Rico. The investigation was conducted by the Criminal Investigation Division of the IRS and is assigned to Senior Litigation Counsel Bruce Brandler.
****Grand Prairie, Texas Man Sentenced for Drug TraffickingRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 44-year-old Grand Prairie, Texas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Daniel Martinez pleaded guilty on Jan. 28, 2014 to conspiracy to distribute narcotics and was sentenced to 87 months in federal prison on july 28, 2014 by U.S. District Judge Marcia Crone.
According to information presented in court, in May 2010, Martinez became involved in a conspiracy to distribute marijuana and cocaine in the Eastern District of Texas. Martinez used cellular telephones to conduct coded conversations about drug trafficking activity with various co-conspirators. Martinez admitted responsibility for distributing approximately 900 kilograms of marijuana.
On May 12, 2011, a federal grand jury returned a seven-count second superseding indictment against Martinez and 15 co-defendants, charging them with numerous federal drug trafficking conspiracy and firearm violations.
Twelve co-defendants have pleaded guilty and been sentenced as follows:
- Armando Basaldua – sentenced to 57 months
- Paola Alonso – sentenced to 21 months
- Armando Iniguez – sentenced to 6 months
- Guadalupe Patricia Rangel-Salazar – sentenced to 71 months
- Jorge Enrique Perez-Solis – sentenced to 71 months
- Diego Hernandez – sentenced to 57 months
- Daniel Hernandez-Gutierrez – sentenced to 69 months
- Jose Frederico Flores – sentenced to 262 months
- Orthon Carranza Rodriguez – sentenced to 30 months
- Jonathan Belen Lugo – sentenced to 24 months
- Juan Antonio Roslaes – sentenced to 60 months
- Oscar Omar Guerra-Moreno – sentenced to 6 months
- Guadalupe Chavez-Figueroa – sentenced to 60 months
Two additional defendants, Eliezer Aleman and Luis Enrique Arguero, are currently fugitives from justice.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.This case was investigated by the U.S. Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation and Homeland Security Investigations.
Georgia Man Sentenced to Prison for Counterfeit Check Cashing SchemeRead the Press Release
PITTSBURGH - A Georgia resident has been sentenced in federal court to 27 months incarceration and three years supervised release on his conviction of conspiracy to make and utter counterfeit securities, United States Attorney David J. Hickton announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Brandon Roseberry, 24, of Snellville.
According to the information presented to the court, Roseberry conspired with others to recruit persons to negotiate counterfeit checks at banks in Western Pennsylvania in October 2011, causing losses of nearly $130,000 to local banks.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of Roseberry. The WPFCTF was established as a collaborative, multi agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Four Farmer's Co-op Employees Indicted for Falsifying Harvest Load WeightsRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted four employees of a north Alabama farmer's cooperative for making false statements to the U.S. Department of Agriculture, announced U.S. Attorney Joyce White Vance, U.S. Secret Service Special Agent in Charge Craig Caldwell and U.S. Department of Agriculture, Office of Inspector General-Investigations, Special Agent in Charge Karen Wilcox-Citizen.
In separate indictments filed in U.S. District Court, the grand jury charged AARON BLAKE WILLIAMS, 25, and TYLER THOMAS GLAZE, 26, both of Decatur, JAMES EDWARD TOON JR., 35, of Elkmont, and JOSHUA WAYNE HOLT, 32, of Hartselle, with falsifying certifications of harvest load weights from August 2009 to March 2013 at the Alabama Farmer's Cooperative in Decatur.
The maximum penalty for making false statements to the government is five years in prison and a $250,000 fine.
The Secret Service and USDA, OIG, investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
The public is reminded that an indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former Police Officer Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANDREW W. NIELSEN, 50, of South Windsor, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 24 months of imprisonment, followed by five years of supervised release, for possessing child pornography.
According to court documents and statements made in court, between November 2010 and April 2011, NIELSEN purchased several DVDs containing child pornography from a foreign company and had them shipped to his residence. NIELSEN was arrested on November 1, 2012. On that date, law enforcement searched NIELSEN’s residence and seized several of the DVDs that he had ordered.
NIELSEN was a police officer with the East Hartford Police Department at the time of the offense. He resigned from the department after his arrest.
On March 25, 2014, NIELSEN pleaded guilty to one count of possession of child pornography.
NIELSEN, who has been released on bond under electronic monitoring by the U.S. Probation Office since November 2012, was ordered to report to prison on September 8, 2014.
This matter was investigated by the U.S. Postal Inspection Service and was prosecuted by Assistant U.S. Attorney Neeraj N. Patel and Special Assistant U.S. Attorney Charles Rombeau.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
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Tom Carson
(203) 821-3722 [email protected]Former Midwestern Intermediate IU4 Official Pleads GuiltyRead the Press Release
PITTSBURGH - A resident of Grove City, Pennsylvania, pleaded guilty in federal court to a charge of theft concerning a program receiving federal funds, United States Attorney David J. Hickton announced today.
Cecelia H. Yauger, age 56, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that from in and around January 2012, to in and around December 2012, Yauger, being an agent of the Midwestern Intermediate Unit IV (“IU4”), did knowingly steal property worth at least $5,000, which was owned by and under the custody and control of IU4.
Judge Conti scheduled sentencing for Nov. 14, 2014 at 3 p.m. The law provides for a total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, and the United States Department of Education, Office of Inspector General conducted the investigation that led to the prosecution of Cecelia H. Yauger.
Former Letter Carrier Sentenced for Illegally Destroying MailRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Daniel Brautlacht, 20, of Cheektowaga, N.Y., who was convicted of delay or destruction of mail, was sentenced to time served by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney, Russell T. Ippolito, Jr., who handled the case, stated that the defendant started working for the United States Postal Service (“USPS”) as a city carrier assistant on March 9, 2013. In this position, Brautlacht was responsible for delivering letters, postal cards, packages, bags or mail on behalf of the USPS.
The sentencing is the culmination of an investigation on the part of the U.S. Postal Service, Office of Inspector General, Eastern Area Field Office, under the direction of Special Agent in Charge Monica Weyler.
On March 21, 2013, while delivering mail on Davey Street in the City of Buffalo, the defendant unlawfully secreted and destroyed 31 pieces of mail, including nine pieces of First Class mail. A neighbor on Brautlacht’s route observed the defendant discard the mail into a garbage receptacle. According to admissions made by Brautlacht, the mail had become jumbled and disorganized. Rather than re-ordering the mail, the defendant discarded it. Brautlacht committed these acts less than two weeks after starting work at the USPS.Former Employee of a U.S. Construction Company Working in Afghanistan Pleads Guilty to Receiving Illegal KickbackRead the Press Release
A former project manager of a U.S. construction company working on U.S. government contracts in Afghanistan who solicited a $60,000 kickback from an Afghan subcontractor pleaded guilty today in federal court in Tucson, Arizona.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John S. Leonardo of the District of Arizona made the announcement.Robert L. Bertolini, 67, of Arivaca, Arizona, pleaded guilty to one count of conspiracy to commit wire fraud and receive an illegal kickback. He is scheduled to be sentenced on Oct. 8, 2014.
According to court documents, Bertolini worked for a construction company that received a U.S. Army Corps of Engineers contract to build a forward operating base for the Afghan National Army in Kabul Province, Afghanistan. The company for which Bertolini worked entered into a subcontract with an Afghan construction company. Shortly after the subcontract was awarded in the spring of 2011, Bertolini solicited personal financial benefits from the subcontractor, including a $60,000 kickback and employment for his son. On May 11, 2011, the subcontractor’s vice president wired approximately $59,975 from Afghanistan to Bertolini’s son’s bank account in Ohio. In return, Bertolini approved two modifications on the subcontract – for which Bertolini did not have actual approval from his company – that were worth $980,000 and $680,000 respectively.
This case is being investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Defense Criminal Investigative Service and the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit. This case is being prosecuted by Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Zipps of the District of Arizona.Former Director of Pop Warner Sentenced to 27 Months in Prison for Stealing Hundreds of Thousands of Dollars from the OrganizationRead the Press Release
TRENTON, N.J. – The former regional director of the Eastern Region of Pop Warner Little Scholars Inc. (Pop Warner) was sentenced today to 27 months in prison for stealing hundreds of thousands of dollars from the organization and using the funds for his personal benefit, U.S. Attorney Paul J. Fishman announced.
David Marshall, 58, of Jackson, New Jersey, previously pleaded guilty before U.S. District Judge Joel A. Pisano to an information charging him with one count of wire fraud. Judge Pisano imposed the sentence today in Trenton federal court.
According the documents filed in this case and statements made in court:
Between 2005 and 2011, Marshall performed work for Pop Warner on a voluntary basis and held various positions. From 2006 through 2011, Marshall was the regional director for the Eastern Region of Pop Warner. He was responsible for handling the finances of the Eastern Region and had access to its bank and credit card accounts. Marshall used his authority to steal hundreds of thousands of dollars from Pop Warner. He improperly used funds from Pop Warner bank accounts to pay off personal debts and make cash withdrawals. Marshall also used a Pop Warner credit card to purchase personal items and other things unrelated to Pop Warner.
In addition to the prison term, Judge Pisano sentenced Marshall to three years of supervised release, ordered to pay $559,841 in restitution and forfeit $559,841.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton.14-272
Defense counsel: Brian P. Reilly Esq., Assistant Federal Public Defender, TrentonFormer Connecticut Resident Charged with Running Iraq Business Opportunity Investment SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury sitting in New Haven has returned an indictment charging JOSEPH T. MORRIS, 51, of Fort Lauderdale, Fla., formerly of Connecticut, with defrauding the co-founders and investors of his Wilton-based company out of approximately $175,000. The indictment was returned on July 1, 2014, and was unsealed yesterday during MORRIS’s arraignment before U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport.
According to the indictment, MORRIS and two other individuals formed a company in October 2011 to develop business opportunities in Iraq. The company’s initial focus was on establishing a pizza restaurant at the U.S. Consulate compound in Erbil, Iraq, and establishing a business to distribute and install specialty window film on vehicles and at hotels, residences, and government buildings, which would protect windows and windshields from blast and breakage, and provide heat retention, ultra-violet shielding, and privacy. MORRIS was the company’s in-country manager in Iraq.
The indictment alleges that MORRIS made numerous fraudulent representations to his co-founders regarding the restaurant and the window film business, knowing that the representations would be communicated to potential investors to induce them to invest in the company. Through the use of fraudulent emails and photographs, MORRIS falsely represented that a lease had been signed to establish a pizzeria on the U.S. consulate compound in Erbil, that renovations were underway, and that progress was being made toward completing renovations and opening the restaurant. MORRIS also falsely represented that the company had an exclusive arrangement with a specialty window film manufacturer to distribute and install the window film in all of Iraq. Based on these misrepresentations, MORRIS caused approximately a dozen investors, most of whom were U.S. military veterans, to invest approximately $175,000 in the company. Instead of using the money from investors to pay for legitimate business expenses, MORRIS diverted large sums of money for his own personal use.
The alleged scheme collapsed in late April to early May 2012 when one of the co-founders discovered that the company did not have a lease or agreement to open and operate a pizza restaurant at the U.S. consulate compound in Erbil and that the company did not have an exclusive arrangement with a window film manufacturer to distribute and install specialty window film in Iraq.
The indictment charges MORRIS with five counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the U.S. Secret Service, the Wilton Police Department, and the Connecticut Financial Crimes Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
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(203) 821-3722 [email protected]Former Buffalo Police Officer Sentenced for Mail FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that former Buffalo Police Officer Johnnie Fritz, 49, of Buffalo, N.Y., who was convicted of mail fraud, was sentenced to 10 months home confinement by Chief U.S. District Court Judge William M. Skretny. The defendant was also ordered to pay restitution in the amount of $6,400 to victims.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the prosecution, stated that between April 20, 2009, and June 9, 2009, Fritz conspired with another individual to defraud State Farm Automobile Insurance Company (“State Farm”) by inflating a claim for automobile insurance policy proceeds. The defendant assisted the co-conspirator in making a claim with State Farm following the theft of the co-conspirator’s automobile, a 2003 Cadillac CTS. The claim included two fraudulent receipts. One of the receipts falsely indicated that new tire rims had been added to the vehicle and the other receipt falsely indicated that a new muffler had recently been installed on the vehicle. The two false receipts inflated the value of the vehicle by more than $3,000.
Fritz made three other unrelated false claims for automobile insurance policy proceeds involving three other vehicles.
In addition to the false claims for insurance, the defendant also abused his position as a police officer with the City of Buffalo Police Department. In October 2009, Fritz unlawfully opened a New York State Department of Motor Vehicles (“DMV”) account that enabled him to search DMV databases at no charge. Only law enforcement officials could open a DMV no-fee account like the one opened by Fritz.
The defendant was previously convicted in Buffalo City Court on June 9, 2011, for Attempted Grand Larceny in the 4th Degree, a misdemeanor, and failure to keep records under the New York State Tax Law, a misdemeanor, for his failure to pay State of New York sales tax receipts related to his automobile dealership.
The sentencing is the culmination of an investigation on the part of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, NYS Department of Motor Vehicles, under the direction of Director Barbara Fiala, NYS Department of Taxation and Finance, Criminal Investigations Division, under the direction of Commissioner Thomas Mattox, the NYS Department of Financial Services, under the direction of Superintendent Benjamin Lawsky, Criminal Investigations Division, and the Federal Bureau of Investigation.Former Bank Employee Pleads Guilty to Bank FraudRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Patricia Margaret Drake (24, Jacksonville) today pleaded guilty to three counts of bank fraud. She faces a maximum penalty of 30 years in federal prison for each count. A sentencing date has not yet been set. Drake was indicted on May 7, 2014.
According to court documents, on December 5, 2013, a Wells Fargo Bank customer in Jacksonville contacted the bank in order to discuss his concerns regarding unauthorized withdrawals from his bank account. After an internal review of the matter, Wells Fargo Bank identified a series of fraudulent withdrawals from the victim’s bank account. Drake, a Wells Fargo Bank employee, was identified as the teller who had handled every fraudulent withdrawal.
The investigation revealed that the victim was not present in the bank branch on the days when the withdrawals took place, including days when withdrawals were made by counter withdrawal slips. U.S. Secret Service agents later interviewed Drake about the fraudulent bank withdrawals. Drake stated that while using the victim’s bank account number, she made multiple unauthorized withdrawals from the victim’s bank account. Drake also stated that she was not sure how many transactions were completed or the total amount of money stolen from the victim’s account. She did not think the victim would notice the withdrawals quickly because he had a larger account balance.
This case was investigated by United States Secret Service. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.