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29 July 2014
Owner and Employee of Illegal Online Gambling Website Admit Conspiring with Genovese Organized Crime FamilyRead the Press Release
NEWARK, N.J. – Two Union County, New Jersey, men, including the owner of an illegal online sports betting website, today admitted to conspiring with the Genovese organized crime family, U.S. Attorney Paul J. Fishman announced.
Joseph Graziano, 77, and Dominick J. Barone, 44, both of Springfield, New Jersey, each pleaded guilty before District Judge Claire C. Cecchi in Newark federal court to separate informations charging them with one count of racketeering conspiracy. Graziano agreed to forfeit $1 million to the United States and Barone agreed to forfeit $100,000.
According to documents filed in this case and statements made in court: Graziano was the principal owner of Beteagle.com, a website located in Costa Rica and used to facilitate illegal online sports betting. Barone worked with Graziano in carrying out the daily activities of the website and both men conspired with the Genovese Crime Family of La Cosa Nostra in the operation of Beteagle.
Joseph Lascala, 80, of Monroe, New Jersey, was the alleged “capo” and a made member of the Genovese family operating in northern New Jersey. He directed the criminal activities of a smaller group of associates, referred to as a crew, whose activities included illegal gambling and the collection of unlawful debt.
This organized crime crew and Graziano and Barone joined forces to allow traditional organized crime members and associates to use the Internet and current technology to conduct traditional organized crime by engaging in and profiting from illegal sports betting through the website. Associates of the crew were given access to Beteagle and were considered “agents.” Before the advent of computerized betting, these agents would have been referred to as “bookmakers” or “bookies.” The agents had the ability to track the “sub-agents,” or bookies, under them and the wagers placed by their bettors. The agent or sub-agent maintained a group of bettors (the “package”) and were responsible for those bettors.To place bets online, the agent or sub-agent issued the bettor a username and password to access Beteagle. This access was not given online and no money or credits were made or transferred through the website. Associates of the crew paid out winnings or collected losses in person. If a bettor failed to pay his gambling losses, the crew used their LCN status and threats of violence to collect on these debts.
The agent or sub-agent paid a fee to the website for each bettor added to a package. Barone and others made weekly collections of cash in furtherance of the scheme.
The count of racketeering conspiracy carries a maximum potential punishment of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Barone is scheduled for Nov. 12, 2014, and for Graziano, Nov. 18, 2014.
To date, John Breheney, a/k/a “Johnny Fugazi, Fu, Johnny Fu,” 49, and Salvatore Turchio, 48, both of Little Egg Harbor, New Jersey; Patsy Pirozzi, a/k/a “Uncle Patsy,” 75, of Suffern, New York; and José Gotay, 76, New Milford, New Jersey, have pleaded guilty to their respective roles in this racketeering conspiracy and await sentencing.
As to the remaining defendants, the charges and allegations contained in a criminal complaint sworn in May 2012 are merely accusations and they are presumed innocent unless and until proven guilty.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; the Bayonne Police Department, Special Investigations Unit, under the direction of Chief Drew Niekrasz; IRS-Criminal Investigation under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the N.J. State Police, under the direction of Superintendent Rick Fuentes; and the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Christopher Gramiccioni, with the investigation leading to today’s guilty pleas.
The government is represented by Assistant U.S. Attorneys Serina M. Vash and Anthony Moscato of the New Jersey U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Graziano: Lawrence S. Lustberg Esq., Newark
Barone: John C. Whipple Esq. Morristown, New JerseyGraziano, Joseph Information
Barone, Dominick InformationOrlando Man Sentenced to More Than 6 Years in Federal Prison and Ordered to Pay $25,000 Fine for Receiving Child PornographyRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Timothy Beaver (49, Orlando) to 6 years and 6 months in federal prison for receipt of child pornography. The Court also ordered Beaver to pay a $25,000 fine, to forfeit the computer equipment that he used to commit the offense, and to serve a life term of supervised release, following his release from prison. Beaver pleaded guilty on March 5, 2014.
According to court documents, Beaver used a file-sharing program and the Internet to download about 14,500 images and 300 videos depicting the sexual abuse and exploitation of mostly prepubescent boys for at least seven years. Beaver also purchased DVD recordings of child pornography from a Canadian website that was subsequently seized by law enforcement authorities.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ohio Woman Admits Creating Fictitious Evidence to Obstruct A Federal InvestigationRead the Press Release
NEWARK, N.J. - An Ohio woman who claimed she investigates labor unions on behalf of attorneys admitted her role today in impeding a federal investigation, U.S. Attorney Paul J. Fishman announced.
Debbie Shank Morgan, 57, of Euclid, Ohio, pleaded guilty before U.S. District Judge Kevin McNulty in Newark federal court to obstruction of justice.
According to documents filed in this case and statements made in court:
In May 2012, Morgan contacted federal agents from the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL-OIG) in New Jersey, a law enforcement agency that investigates allegations related to federal crimes, such as bribery and theft, involving labor unions, union officers, and employee benefit plans.
Morgan said she was a non-practicing lawyer who investigates crimes associated with labor unions, employee benefit plans and other alleged violations of federal criminal and civil law. Morgan said she had information that a former union officer and his father, both from an international labor union, had committed serious violations of federal law. She alleged they had embezzled $30 million from a political action committee (PAC) associated with the union.
Morgan provided federal agents with e-mails and other documents and items as evidence. She had, in fact, falsified, altered and created these items. For example, Morgan provided federal agents with e-mails she claimed were evidence in support of her allegations. Federal agents then obtained a court-authorized search warrant and seized the actual e-mails transmitted through the service provider. The e-mails from the search warrant demonstrated that she had altered and fabricated the e-mails before giving them to federal agents. In addition, in September 2012, she claimed that an unknown individual had fired a weapon at her car while she was driving it in Ohio. Morgan then provided federal agents with two digital recordings, allegedly with the wife of the alleged shooter. In these consensual recordings, the wife admitted that her husband had fired a weapon at Morgan’s car. The recordings, however, were fabricated and created by Morgan and an unknown third party.
The obstruction count to which Morgan pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Nov. 6, 2014.
U.S. Attorney Fishman credited special agents of the U.S. Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, New York Region, under the direction of Special Agent in Charge Cheryl Garcia, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Anthony Moscato of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Jack A. Meyerson Esq., Philadelphia
Morgan, Debbie Shank Information
Miami-Dade County Resident Sentenced in Stolen Identity Tax Refund Scheme Involving Thousands of Individuals’ Personal Identifying InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that Paul Evans Auguste, 30, of Miami, was sentenced today to 61 months in prison, to be followed by three years of supervised release for his participation in a stolen identity tax refund scheme.
Auguste previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, beginning on approximately September 30, 2013, Auguste began advertising to friends and acquaintances that he had personal identifying information (PII) for sale, that is, stolen names, dates of birth, and social security numbers belonging to real individuals. On December 9, 2013, Auguste sold PII belonging to 200 different individuals to an undercover law enforcement officer for $2,000. The PII sold by the defendant consisted of patient information sheets from rehabilitation center in Philadelphia.
Court documents also state that on January 6, 2014, the defendant sold an additional 60 pieces of PII to an undercover law enforcement officer for $500. During that exchange, the defendant stated that he was opening a “tax” office and needed money; the defendant reiterated that he obtained the PII from Philadelphia and offered to sell another 200 pieces of PII for $1,000.
According to court documents, on January 28, 2014, law enforcement executed a search warrant of the defendant’s residence and discovered an additional 2,164 pieces of PII (702 of which were in his car, which the defendant was driving on his way to another controlled sale to law enforcement, and the remaining 1,462 of which were found in the defendant’s room).
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Francisco R. Maderal.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mescalero Apache Man Sentenced to Prison for Federal Assault ConvictionRead the Press Release
ALBUQUERQUE – Sheridan Gerard Lester, 24 was sentenced in federal court in Las Cruces, N.M., this afternoon to 21 months in federal prison followed by three years of supervised release for his assault conviction.
Lester, a member of the Mescalero Apache Nation who resides in Mescalero, N.M., was arrested in Aug. 2013, on a criminal complaint alleging assault with a dangerous weapon and assault resulting in serious bodily injury. On Jan. 28, 2014, Lester entered a guilty plea to a felony information charging him with assault resulting in serious bodily injury and admitted assaulting another Mescalero Apache man on Nov. 27, 2012, at a location within the Mescalero Apache Reservation.
According to court filings, Lester assaulted the victim on Nov. 27, 2012, at Lester’s residence, which is located within the Mescalero Apache Reservation. Lester was intoxicated when he began quarreling with the victim and began attacking the victim with his fists. In entering his guilty plea, Lester admitted intentionally striking the victim about the body and in the face, causing the victim to suffer serious injuries.
Lester was in tribal custody for 302 days based on a tribal conviction related to the assault charged in the federal case before he was transferred to federal custody. Lester will receive credit for the 302 days spent in tribal custody.
This case was investigated by the Las Cruces office of the FBI and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U .S. Attorney’s Las Cruces Branch Office.
Mescalero Apache Man Sentenced to Federal Prison for Methamphetamine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Gabriel Gene Ortega, 34, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced this morning for his methamphetamine trafficking conviction. Ortega was sentenced to 41 months in federal prison to be followed by three years of supervised release.
Ortega was arrested on Dec. 7, 2012, based on a criminal complaint charging him with the manufacture and distribution of methamphetamine. On April 18, 2013, Ortega pled guilty to a felony information charging him with manufacturing and distributing methamphetamine in the Mescalero Apache Reservation in Otero County, N.M., between Aug. 1, 2011 and Aug. 8, 2012.
Court filings reflect that Ortega was charged based on evidence developed by a BIA investigation. As part of that investigation, the BIA executed a federal search warrant at Ortega’s residence on Aug. 8, 2012, and seized chemicals, equipment and items associated with the manufacturing of methamphetamine. The BIA also seized a vial containing methamphetamine.
In entering his guilty plea, Ortega admitted that he had been involved in the manufacturing and distribution of methamphetamine for a year preceding the execution of the search warrant.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services with assistance from the Las Cruces office of the FBI, the Ruidoso Police Department and the New Mexico State Police. Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Mentor Man Indicted for Selling Drugs Not Approved by the FDARead the Press Release
A Mentor man was indicted for marketing and selling at least $220,000 worth of suntan and/or erectile dysfunction drugs that were not approved by the Food and Drug Administration, said Steven M. Dettelbach, United States Attorney for the Northern District.
Timothy J. Parr, 31, was indicted in federal court on one count to distributing misbranded drugs.
“These regulations are mandated to ensure drugs made available to the public are safe and have been properly tested,” Dettelbach said. “This defendant ignored those regulations in an effort to make money.”
“Today’s announcement demonstrates the continued commitment of FDA's Office of Criminal Investigations to aggressively pursue those who distribute unapproved and misbranded drugs,” said Special Agent in Charge Antoinette V. Henry of FDA’s Office of Criminal Investigations. “We will remain vigilant in our efforts to protect consumers from these potentially dangerous products.”
Parr formed U.S. Lab Research, Inc., and later, U.S. Lab Exports, Inc., which he operated from his home. The businesses existed to market and sell drugs over the Internet which had not been approved by the FDA, according to the indictment.
Parr, through U.S. Lab Research, Inc., and later, U.S. Lab Exports, Inc., sold injectable peptide drug products and injection aids to consumers over various web sites. These products included Melanotan I, Melanotan II and Bremalanotide, which were unapproved injectable drugs. Melanotan I and Melanotan II were marketed as producing the equivalent of a sun tan while Bremalanotide was known to cause erections in male subjects, according to the indictment.
From 2008 through December 2010, Parr sold approximately $220,000 in misbranded drugs, according to the indictment.
Parr, through his companies, marketed the drugs as “for research only” and “not for human use,” which he did to avoid FDA scrutiny.” He also labeled containers as “sun screen” to avoid scrutiny, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney James V. Moroney following an investigation by the FDA’s Office of Criminal Investigations.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mason City Man Charged with Meth ConspiracyRead the Press Release
Peoria, Ill. – A Mason City, Ill., man, Teddy Lee, Jr., 25, of the 400 block of S. Keefer Street, is scheduled to appear in federal court in Peoria on Aug. 6, 2014, to face charges returned by a federal grand jury last week, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. The three-count indictment charges Lee with conspiracy to manufacture methamphetamine, possession of a firearm by a felon, and possession of a stolen firearm.
The indictment alleges that from the summer of 2013 to the present, Lee conspired with others to manufacture methamphetamine, that he possessed a firearm as a felon, and that he possessed a stolen firearm. The conspiracy allegedly involved more than 50 grams of a mixture and substance containing a detectable amount of methamphetamine.If convicted, the statutory maximum penalty for conspiracy to manufacture methamphetamine is life in prison, and a fine of up to $4,000,000. The maximum penalty for the offenses of felon in possession of a firearm and possession of a stolen firearm is 10 years in prison and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney K. Tate Chambers. The charges are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mason County Sheriff’s Office, the Tazewell County Sheriff’s Office, and the Pekin Police Department.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
# # # #Man Faces Five Years in Federal Prison in “Swatting” CaseRead the Press Release
DALLAS — Jason Allen Neff, 33, pleaded guilty today to federal charges in a “swatting” case, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Swatting refers to falsely reporting an emergency to a police department to cause a Special Weapons and Tactics (SWAT) response to a physical address, or making a false report to elicit an emergency response by other first responders to a specific physical address.
Neff, also known as “Crazy J,” is from Omaha, Nebraska, although he was living in Jackson, Missouri when he was arrested. Neff pleaded guilty to one count of aiding and abetting the conspiracy to use access devices to modify telecommunications instruments and to make unauthorized access to protected telecommunications computers and one count of obstruction by retaliating against a witness, victim or informant. If the Court accepts the terms of the plea agreement, the parties have agreed that a specific sentence of 60 months in federal prison is the appropriate sentence for the obstruction conviction, and it should run concurrently to any sentence imposed for the other count of conviction. Neff, who remains in custody, is scheduled to be sentenced on December 1, 2014, by U.S. District Judge Sam A. Lindsay.
According to documents filed in the case, Neff, along with previously charged and convicted co-conspirators Guadalupe Martinez, Stuart Rosoff, Jason Trowbridge, Chad Ward, Matthew Weigman, Angela Roberson and others,* were members of, and participated in, telephone chat/party lines in which they made, or facilitated the making of, swatting 911 calls. They concealed the true caller ID and made false reports of violent crimes to elicit a police SWAT response to the targeted members of the telephone chat/party line, their family members, and associated persons.
Neff participated in multiple telephone party line chat groups (party lines) that conspirators and thousands of other callers frequented. Participants in these party lines generally used pseudonyms or nicknames to protect their identities, and they would often be rude and obnoxious to antagonize other party line participants, other conspirators and their families.
Neff, along with Martinez, Rosoff and Weigman, according to the indictment, were “phone phreakers,” using social engineering or subterfuge to acquire sensitive information from telephone service providers. That sensitive information enabled them to exploit telephone network computer service by obtaining subscriber information; altering billing information and service plans; redirecting, changing service charges, and discontinuing telephone service; monitoring or taping telephone lines; and obtaining telephone company security policies and procedures.
In May 2006, Neff obtained publicly available voter information about another party line member and provided it to co-conspirator Roberson so she could repeat the information in the party line. Neff knew the information could be used for harassment.
A few days later, Neff obtained identifying information about another party line member with whom co-conspirator Roberson was upset. Neff listened in on a three-way phone call made from a private room on the party line where co-conspirator Rosoff used information that Roberson provided in order to social engineer an SBC employee and obtain the caller’s current phone number and address. That information was verified and used to prompt a neighbor of the caller to respond to a false request for assistance.
In January 2007, Neff confronted a party line member, “SP,” about her providing misleading and inaccurate information to the FBI regarding his ownership of a party-line related website, which he did not own, and his being a member of the group that had previously swatted her. Neff threatened her on the party line, stating, “snitches get stitches.” Neff made the threats to intimidate SP and to retaliate against her for providing information about him to the FBI.
The FBI investigated the case. Assistant U.S. Attorney C.S. Heath is in charge of the prosecution.
*Martinez sentenced in March 2008 to 30 months; Rosoff sentenced in May 2008 to 60 months; Trowbridge sentenced in May 2008 to 60 months; Ward sentenced in May 2008 to 60 months; Weigman sentenced in June 2009 to 135 months; and Roberson sentenced in July 2008 to 30 months.
Lewiston Man Sentenced to 25 Years for Sexual Exploitation of a ChildRead the Press Release
Contact: Darcie N. McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Derek
Hinkley, a/k/a “Ethan Hinkley,”30, of Lewiston, Maine, and formerly of Strong, was sentenced yesterday in U.S District Court by Judge Nancy Torresen to 25 years in prison and supervised release for life for sexual exploitation of a child. Hinkley pled guilty on January 30, 2014.On July 17, 2012, Hinkley invited two boys, ages 12 and 15, to spend the night at his apartment telling the boys that he was 18 years old. Upon arrival at his apartment, Hinkley used a laptop computer to show them pornography and then, brandishing a knife, forced both to masturbate and play with a sex toy. On July 18, 2012, shortly after midnight, Hinkley used a webcam on his computer to capture and disseminate live over the internet on a social media website the image of the older boy masturbating at knifepoint. On July 19, 2012, Hinkley’s apartment was searched and detectives seized the computer and the sex toy. A forensic analysis of the computer revealed that Hinkley used the social media website at the same time reported by the victims. On July 20, 2012, Hinkley confessed to committing the crime.
The charge required imposition of a mandatory minimum 15 year term in prison. In imposing sentence, Judge Torresen said: "You do have a very serious problem and I can't be comfortable that others will be protected unless I give you a very serious sentence."
The investigation was conducted by the Lewiston Police Department and U.S.
Immigration and Customs Enforcement’s Homeland Security Investigations.Leader of Heroin Trafficking Ring Sentenced to 34 Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Cornell Clisby, 46, of Cincinnati, who led a heroin trafficking conspiracy in the greater Cincinnati area, was sentenced in U.S. District Court on July 27 to 408 months’ imprisonment. Five other members of the conspiracy, including Cornel Clisby’s ex-wife, have also been sentenced.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, James V. Allen, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), the Ohio Bureau of Criminal Investigation, and the Drug Abuse Resistance Task Force (DART), announced the sentences imposed by U.S. District Judge Michael R. Barrett.
A federal grand jury indicted Cornell Clisby and six others in October 2012 following a year-long investigation. All the defendants pleaded guilty to one count of conspiracy to possess with intent to distribute more than one kilogram of heroin. Others charged are: Dorothy Clisby, 46, Cincinnati, who was sentenced to 100 months in prison.
Dwayne Williams, 47, Fairburn, Georgia, was sentenced to 120 months in prison.
Michael Williams, 35, Cincinnati, was sentenced to 57 months in prison.
Allen Carnes, 45, Cincinnati, was sentenced to 210 months in prison.
Marcus Gentry, 42, Florence, Kentucky, was sentenced today to 48 months in prison.
Anthony Anderson, 47, Columbus, Ohio, is scheduled for sentencing on July 30.All seven were arrested following their indictment and all except for Dorothy Clisby have been in custody since their arrest.
Beginning in 2011, DEA agents and investigators with DART identified several houses in the Cincinnati and Lincoln Heights area that Clisby and the co-conspirators used as “stash houses” to prepare and distribute heroin throughout the greater Cincinnati area. In court documents filed with Clisby’s plea, he admitted that he organized and led the distribution process. He also admitted that he was responsible for obtaining the heroin.
The court concluded that Clisby is a career offender who merits a lengthy sentence. Clisby previously served nine years on a federal narcotics trafficking conviction. The court also noted that Clisby was on parole for a state narcotics trafficking conviction at the time he committed the most recent crime.
“The illegal trade in drugs has done nothing but destroy inner city neighborhoods, damage the very foundations of the families who live there and stunt the legitimate community activity that might otherwise occur there,” Assistant U.S. Attorney Karl Kadon told the court prior to the sentencing hearings. “It is inherently violent, cancerously pervasive, and contributes nothing.”
U.S. Attorney Stewart commended the investigation by the DEA and agencies participating in the DEA Task Force, DART, Ohio BCI and the New York office of the DEA, who assisted in the investigation. He also recognized Assistant U.S. Attorney Karl Kadon, who represented the United States in the case.
###Leader of Drug Trafficking Organization Pleads GuiltyRead the Press Release
JOHNSTOWN, Pa. - A Detroit resident pleaded guilty in federal court to a charge of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
Kenneth Irving Carter, 34, of Detroit, Michigan, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from the spring of 2011 to May 15, 2012, Carter, along with 14 co-defendants, conspired to distribute and possess with intent to distribute more than one kilogram of heroin. In addition to his plea of guilty to the heroin trafficking charge, Carter also accepted responsibility for conspiring to distribute and possess with the intent to distribute approximately 8,000 Opana pills.
Carter, as the leader of this multi-member drug trafficking organization, orchestrated and directed the movement of the heroin from Detroit to locations in Johnstown and Blairsville for ultimate sale by various members of his drug trafficking network. In addition to his leadership role in his drug organization, Carter employed threats of violence and the actual use of violence in managing his subordinate co-defendants.
Judge Gibson scheduled sentencing for Jan. 15, 2015, at 10 a.m. The law provides for a maximum total sentence of life in prison and a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, the Pennsylvania State Police and the Indiana Police Department conducted the investigation that led to the prosecution of Carter. Other agencies participating in this investigation included the Pennsylvania Attorney General's Office, the Cambria County Drug Task Force, the Cambria County Sheriff's Department, the Cambria County District Attorney's Office, the Indiana County Drug Task Force, and the Indiana County District Attorney's Office.
Las Vegas Street Gang Member Pleads Guilty to Racketeering and Drug ChargesRead the Press Release
On the second day of his federal jury trial, a Las Vegas Playboy Bloods street gang member pleaded guilty today to racketeering and drug charges, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division.
“We will use federal resources to prosecute street gang members who commit cowardly and horrible crimes in our community,” said U.S. Attorney Bogden. “I commend the many law enforcement officers who worked on this investigation and assisted us in ensuring a conviction in this case.”
Markette Tillman, 31, pleaded guilty to one count of RICO conspiracy and one count of possession with intent to distribute cocaine base, and is scheduled to be sentenced by U.S. District Judge Kent J. Dawson on Oct. 28, 2014. Tillman faces up to 20 years in prison on each count, as well as fines of up to $1 million. The jury trial began yesterday, July 28, 2014, and the government had called seven witnesses to testify. Tillman is the remaining gang member to be convicted out of 10 charged in a RICO indictment filed in 2008.
According to the guilty plea agreement and evidence produced at trial, the Bloods are a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area. The Playboy Bloods operate primarily in the Sherman Gardens Annex, a public housing complex, located at the corner of Doolittle and H Streets in Las Vegas, and commonly called the “Jets.” On or about Jan. 20, 2004, Tillman aided and abetted the murder of a security guard at the Jets. The guard approached Tillman and several other Playboy Bloods and told them to leave the property. An argument ensued, and the guard rode away on his bicycle to get help. One of the Playboy Bloods fired a gun at the guard, hitting him two times and killing him. Tillman admitted that he aided and abetted the murder of the guard and acted deliberately and intentionally with extreme disregard for human life. Tillman further admitted that he agreed with other members of the Playboy Bloods to manufacture and distribute narcotics, primarily crack cocaine, and to operate drug houses within the Playboy Bloods’ turf. Tillman specifically admitted to distributing in excess of 280 grams of crack cocaine. Tillman also admitted that he distributed crack cocaine to another person on about Jan. 3, 2007, at one of the drug houses.
Nine other defendants who have been convicted and sentenced, as follows:· Jacorey Taylor, aka “Mo-B,” 31, convicted by a jury of engaging in a racketeering conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, participating in a drug conspiracy, and possessing crack cocaine with the intent to distribute and sentenced to life in prison Oct. 21, 12013.
· Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy involving two murders and was sentenced to 20 years in prison on April 10, 2013
· Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy involving one murder and was sentenced to 20 years in prison on April 9, 2013
· Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy and was sentenced to 6½ years in prison on Dec. 3, 2010
· Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on Oct. 20, 2010
· Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on Sept. 17, 2010
· Terrence Thomas, aka “Seven,” 40, pleaded guilty to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010
· Sebastian Wigg, aka “Rock,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
· Fred Nix, aka “June P,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
The cases were investigated by the FBI’s Las Vegas Safe Streets Gang Task Force, which includes officers from the North Las Vegas Police Department and Las Vegas Metropolitan Police Department, and are being prosecuted by Assistant United States Attorneys Nicholas D. Dickinson and Phillip N. Smith, Jr., and Kevin L. Rosenberg, Trial Attorney with the U.S. Department of Justice Organized Crime and Gang Section.
Las Vegas Street Gang Member Pleads Guilty to Racketeering and Drug ChargesRead the Press Release
LAS VEGAS, Nev. On the second day of his federal jury trial, a Las Vegas Playboy Bloods street gang member pleaded guilty to racketeering and drug charges, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division.
“We will use federal resources to prosecute street gang members who commit cowardly and horrible crimes in our community,” said U.S. Attorney Bogden. “I commend the many law enforcement officers who worked on this investigation and assisted us in ensuring a conviction in this case.”
Markette Tillman, 31, pleaded guilty to one count of RICO conspiracy and one count of possession with intent to distribute cocaine base, and is scheduled to be sentenced by U.S. District Judge Kent J. Dawson on Oct. 28, 2014. Tillman faces up to 20 years in prison on each count, as well as fines of up to $1 million. The jury trial began yesterday, July 28, 2014, and the government had called seven witnesses to testify. Tillman is the remaining gang member to be convicted out of 10 charged in a RICO indictment filed in 2008.
According to the guilty plea agreement and evidence produced at trial, the Bloods are a nationally-known criminal street gang whose members engage in drug trafficking and acts of violence. The Playboy Bloods is a local “set” or affiliate of the Bloods, with local control and operation within the Las Vegas metropolitan area. The Playboy Bloods operate primarily in the Sherman Gardens Annex, a public housing complex, located at the corner of Doolittle and H Streets in Las Vegas, and commonly called the “Jets.” On or about Jan. 20, 2004, Tillman aided and abetted the murder of a security guard at the Jets. The guard approached Tillman and several other Playboy Bloods and told them to leave the property. An argument ensued, and the guard rode away on his bicycle to get help. One of the Playboy Bloods fired a gun at the guard, hitting him two times and killing him. Tillman admitted that he aided and abetted the murder of the guard and acted deliberately and intentionally with extreme disregard for human life. Tillman further admitted that he agreed with other members of the Playboy Bloods to manufacture and distribute narcotics, primarily crack cocaine, and to operate drug houses within the Playboy Bloods’ turf. Tillman specifically admitted to distributing in excess of 280 grams of crack cocaine. Tillman also admitted that he distributed crack cocaine to another person on about Jan. 3, 2007, at one of the drug houses.
Nine other defendants who have been convicted and sentenced, as follows:
- Jacorey Taylor, aka “Mo-B,” 31, convicted by a jury of engaging in a racketeering conspiracy, committing violent crimes in aid of racketeering activity, using a firearm during a crime of violence, participating in a drug conspiracy, and possessing crack cocaine with the intent to distribute and sentenced to life in prison Oct. 21, 12013.
- Steven Booth, aka “Stevie-P,” 27, pleaded guilty to RICO conspiracy involving two murders and was sentenced to 20 years in prison on April 10, 2013
- Reginald Dunlap, aka “Bowlie,” 30, pleaded guilty to RICO conspiracy involving one murder and was sentenced to 20 years in prison on April 9, 2013
- Demichael Burks, aka “Mikey P,” 29, pleaded guilty to RICO conspiracy and was sentenced to 6½ years in prison on Dec. 3, 2010
- Anthony Mabry, aka “Akim Slim,” 43, pleaded guilty to RICO conspiracy and was sentenced to 14 years in prison on Oct. 20, 2010
- Delvin Ward, aka “D-Luv,” 37, pleaded guilty to RICO conspiracy and was sentenced to 11 years in prison on Sept. 17, 2010
- Terrence Thomas, aka “Seven,” 40, pleaded guilty to drug conspiracy and was sentenced to 10 years in prison on June 16, 2010
- Sebastian Wigg, aka “Rock,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
- Fred Nix, aka “June P,” 36, pleaded guilty to drug conspiracy and was sentenced to five years in prison on March 29, 2010
KC Man Charged with Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was charged in federal court today with the robbery of Commerce Bank.
David E. Clark, 35, of Kansas City, was charged in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s complaint alleges that Clark stole $3,037 from Commerce Bank, 118 W. 47th Street, Kansas City, Mo., on Monday, July 28, 2014.
According to an affidavit filed in support of the federal criminal complaint, Clark entered the bank at about 1:25 p.m. He walked to a teller station, the affidavit says, and grabbed a note from his pocket. The teller refused to look at the note and asked if Clark needed help. Clark allegedly told the teller to pull out his drawers. When the teller told Clark his teller drawers were locked, the affidavit says, Clark instructed him to get the keys. As the teller turned to get the keys, Clark told him not to move and reached back into his pocket. According to the affidavit, the teller was frightened because he believed Clark might be reaching for a gun. Clark allegedly told the teller to “give me 100’s, 50’s and 20’s.” The teller grabbed the money from his teller drawer and gave it to him.
According to the affidavit, Clark walked swiftly out of the bank’s front door then ran up Wyandotte Street. Another bank employee saw Clark exit a parking garage in a white truck. At about 1:56 p.m., Clark’s vehicle was spotted by Kansas City police officers. Clark was arrested after a car chase and utilization of their K9 unit dog.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the FBI and the Kansas City, Mo., Police Department.Justice Department Files Lawsuit Alleging Sex Discrimination Against the Commonwealth of Pennsylvania and the Pennsylvania State PoliceRead the Press Release
The Justice Department announced the filing of a lawsuit today against the Commonwealth of Pennsylvania and the Pennsylvania State Police, alleging that the defendants are engaged in a pattern or practice of employment discrimination against women in violation of Title VII of the Civil Rights Act of 1964. Specifically, the lawsuit challenges the state police’s use of two physical fitness tests to screen and select entry-level state troopers.
The complaint, filed in the U.S. District Court for the Middle District of Pennsylvania, alleges that the physical fitness tests used by the state police between 2003 and the present excluded qualified women from consideration for hire as entry-level state troopers by testing for physical skills that are not required to perform the job. The department also alleges that, during the relevant time period, the defendants’ use of physical fitness tests as part of a multi-step employment selection process disproportionately screened out female applicants, resulting in a disparate impact against those applicants.
Title VII prohibits both intentional discrimination on the basis of race, color, sex, national origin and religion as well as employment practices that result in a disparate impact upon a protected group, unless the practices are job-related and consistent with business necessity. The department alleges that the defendants’ use of the challenged physical fitness tests violates Title VII because that use does not meet this standard and does not identify the best qualified applicants for entry-level state trooper jobs.
“The Department of Justice is deeply committed to eliminating artificial barriers that keep qualified women out of public safety work,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to challenge discriminatory hiring practices that unnecessarily exclude qualified applicants on account of sex.”
In the lawsuit, the department seeks a court order that would require the Pennsylvania State Police to stop using the challenged physical fitness tests, develop hiring procedures that comply with Title VII and provide make-whole relief, including offers of hire, retroactive seniority, and back pay to individual women who have been harmed as a result of the defendants’ use of the challenged physical fitness tests.
Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt/.
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Jasper County Man Sentenced to 168 Months in Prison on Child Pornography ChargesRead the Press Release
DES MOINES, IA – Arleigh Joe Esqueda, age 35, of Newton was sentenced to 168 months in prison on federal child pornography charges in U.S. District Court for the Southern District of Iowa on July 28, 2014, announced United States Attorney Nicholas A. Klinefeldt. Esqueda was also ordered to serve eight years of supervised release after imprisonment and to pay $100 to the Crime Victims Fund.
Esqueda pled guilty to knowingly possessing child pornography that included images of a prepubescent child or children under 12.
The sentence imposed on Esqueda was based, in part, on Esqueda’s criminal history and the nature of the offense. According to court documents, Esqueda had over 10 previous state-court convictions for various crimes, including one prior sex offense when he was 17. His collection of child pornography was accumulated over approximately 5 years, and he had 351 images and 77 videos of child pornography on his computer when he was caught by law enforcement officers in 2013.
The case was investigated by law enforcement agents with Homeland Security Investigations, and prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
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Jamaican Native Sentenced for Passport FraudRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Christopher Brown, 30, a native of Jamaica, who was convicted of making a false statement in connection with an application for a United States Passport, was sentenced to a time-served (six months) by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that in March 2012, Brown submitted an application for a U.S. Passport with the United States Department of State. On the application, the defendant falsely claimed that his name was Torey Khalif Murray and that he was born in Brooklyn, New York. In fact, the investigation revealed that his real name was Christopher Brown and that he had been born in Jamaica.
The sentencing is the culmination of an investigation on the part of United States Department of State, Diplomatic Security Service, under the direction of Buffalo, New York Resident Agent in Charge William P. Ferrari.Henning Man Sentenced to Six Years in Federal Prison for Illegal Firearm Possession and Threatening A WitnessRead the Press Release
Memphis, TN – Darius D. Mitchell, age 26, of Henning, Tenn., was sentenced to six years in federal prison on July 25, 2014 following his March 2014 guilty plea to two counts of being a felon in possession of a firearm and one count of attempting to threaten a federal witness, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and 25th District Attorney General Mike Dunavant.
According to the facts alleged in the indictment and revealed during the sentencing hearing, the Bureau of Alcohol, Tobacco, Firearms, and Explosives began investigating Mitchell in April 2011. During the course of the investigation, federal agents discovered that Mitchell, a previously convicted felon, was in possession of a firearm and ammunition. In addition, on November 28, 2013, Mitchell threatened and intimidated a federal witness to prevent the witness from testifying against him in court.
In addition to the prison sentence, Senior U.S. District Judge Jon P. McCalla ordered Mitchell to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the 25th District Attorney General’s Office. Assistant U.S. Attorney Michelle Parks and Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.Government Contractor in Huntsville Sentenced to Nine Years in Prison for $14 Million Fraud SchemeRead the Press Release
BIRMINGHAM – A federal judge today sentenced a government contractor in Huntsville to nine years in prison for a scheme to defraud the government of nearly $14 million in contract payments over six years.
U.S. District Judge R. David Proctor sentenced JOSEPH SHANE TERRY, 41, of Meridianville, Ala., on charges of wire fraud, false statements to the Small Business Administration, false statements on loan applications, and money laundering. The sentencing caps a 4 ½-year government investigation. Terry, who was sole owner of Government Technical Services, pleaded guilty to the charges in August 2013. The judge today ordered Terry to forfeit $1,019,761 to the government as proceeds of illegal activity. Terry is in custody.
U.S. Attorney Joyce White Vance; Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot; Department of the Army, Criminal Investigation Command Special Agent in Charge James Wallis; Department of Defense, Defense Criminal Investigative Service Special Agent in Charge John F. Khin; and Small Business Administration Inspector General Peggy E. Gustafson announced Terry's sentence.
"Government contractors should not view taxpayer funds as their personal pocketbooks and when they do, as Joseph Terry did in this case, we are going to hold them accountable and put them in jail," Vance said. "We encourage our citizens, particularly those in the Huntsville area with so many government contractors, to bring to light other instances of fraud so that wrongdoers can be brought to justice."
"In concert with our partner agencies, DCIS aggressively investigates fraud and corruption that undermines the integrity of Department of Defense programs and contracts," Khin said. "We must do all we can to preserve precious American taxpayer dollars while ensuring our national security."
"Our agents worked tirelessly on this case and are very pleased to see that justice has been served," said Frank Robey, director of the U.S. Army Criminal Investigation Command's, Major Procurement Fraud Unit. "We will not tolerate fraud in the Department of the Army and every one of these criminal cases, either directly or indirectly, negatively impacts our brave men and women serving this nation during a time of war."
"Joseph Shane Terry used his position as a government contractor to defraud the United States government. IRS Criminal Investigation, along with our law enforcement partners, will continue to pursue any and all individuals who make a choice to violate the integrity of government contracts," Hyman-Pillot said. "We work aggressively to expose complex financial transactions and money-laundering schemes in an effort to protect our nation's financial and justice system," she said.
According to Terry's plea agreement, he carried out his scheme to defraud the government as follows:
Terry applied for and obtained a small disadvantaged or minority-owned business status from the SBA in 2003 by submitting fraudulent tax returns. In order to maintain that status, Terry also submitted false tax returns to the SBA for each year from 2004 through 2008. Having the special status with the SBA enabled his company, GTS, to bid on and win government contracts specifically set aside for small disadvantaged businesses.
Terry submitted personal and corporate returns to the SBA for the tax years 2002 through 2007 to show he was current on filing his taxes, but he had never filed the returns with the IRS.
Terry's wire fraud scheme culminated in GTS obtaining a $961,551 contract in September 2006 to install metal roofing on three buildings at Fort Polk, La. In order to obtain authorization to start work on this contract, GTS submitted forged performance and payment bonds and a power of attorney from a Mississippi bond company and its parent surety company in Louisiana. GTS won the contract, but was terminated in April 2008 for failing to perform the work and for providing fraudulent bonds. In all, Terry employed the fraudulent scheme to obtain more than $14 million in government contracts.
Terry pleaded guilty to five wire fraud counts that involved separate electronic fund transfers totaling more than $500,000. The Defense Finance and Accounting Service in Indiana, an agency of the Department of Defense, transferred the money to a bank account of Terry's in Huntsville in 2007. The five wire transfers were all payments to GTS on the Fort Polk roofing contract.
Terry also pleaded guilty to three counts of mortgage fraud in the Madison County area. He induced banks to make mortgage loans totaling $480,000 based on his false tax returns and other false financial documents.
The money laundering conviction arose from one of the false statements Terry made on a loan application. He admitted that in 2008 he induced his then-girlfriend to apply for a loan and supplied documents falsely claiming that GTS employed her. Terry admitted to money laundering for using the fraudulently obtained loan proceeds for his own purpose.
The normal statute of limitations on fraud against the United States is five years. However, certain charges in this indictment were prosecuted under the Wartime Suspension of Limitations Act, which operates to suspend the statute of limitations for crimes involving fraud against the Government during a time when the United States is at war or there is an Authorization for Use of Military Force in effect, such as Afghanistan and Iraq. This case was the first time that the suspension statute was used in this district.
IRS, Criminal Investigations; U.S. Army Criminal Investigation Command; SBA, Office of Inspector General; Department of Defense, Defense Criminal Investigative Service, and Defense Contract Audit Agency Investigative Support Division, Eastern Region, investigated the case. Assistant U.S. Attorneys David Estes and Jennifer Murnahan prosecuted the case.
Gambling Ring Leader SentencedRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina -----United States Attorney Bill Nettles stated today that Izzat M. Khalil, age 54, of Travelers Rest, South Carolina, was sentenced today in federal court in Spartanburg, South Carolina, for violation of 18 U.S.C. ' 1955, which prohibits the operation of an illegal gambling business. Judge Mary G. Lewis sentenced Khalil to one year and one day imprisonment and ordered him to pay a $100 special assessment. According to his plea agreement, Khalil is forfeiting $194,522.00 in gambling proceeds to the United States.
Evidence at the change of plea hearing established that during the dates set forth in the indictment, Khalil conducted an illegal gambling business in and around Greenville, South Carolina. Five or more persons were involved in this activity and the business was in continuous operation for more than 30 days. The headquarters of Khalil’s business was 6129 Augusta Road, in Greenville South Carolina. Law enforcement used a number of confidential informants to make controlled purchases from Khalil’s gambling locations. For example, on January 31, 2012 and March 13, 2013, a confidential informant who was wired for video and audio made controlled gambling bets at 6129 Augusta Road. Each time the informant received a slip memorializing the transaction. Khalil employed individuals making the betting tickets, recording the wagers, and paying out when necessary. This activity was in violation of S.C. Code Ann. 12-21-2710 and 16-19-130.
The case was investigated by deputies of the Greenville County Sheriff’s Office and agents of the Federal Bureau of Investigation. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.Galveston County Man Sentenced for Beaumont Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 44-year-old Galveston, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Brett Maurice Disiere pleaded guilty on Dec. 11, 2013 to bank robbery and was sentenced to 240 months in federal prison today by U.S. District Judge Thad Heartfield.According to information presented in court, on May 13, 2013, Disiere entered the Wells Fargo Bank located in the 4400 block of Dowlen Road in Beaumont, Texas, and presented the teller with a note demanding money while brandishing a knife. Disiere fled the bank with $5,500. He was identified from video surveillance camera photographs by tipsters after the robbery. Disiere admitted to robbing the bank after he was arrested in Conroe, Texas on May 21, 2015 just after the robbery of another bank there. Disiere was indicted by a federal grand jury on May 23, 2013.
This case was investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Four Valley Residents Sentenced to Prison for Prisoner Tax Refund SchemeRead the Press Release
PHOENIX– On July 28, 2014, Kristi Marie Egger, 34, of Mesa, Ariz., and Michael Wayne Egger, 47, of Mesa, Ariz., were sentenced by U.S. District Judge Susan R. Bolton after each pleaded guilty to two felony counts for conspiring to defraud the United States by filing false federal income tax returns. Kristi Egger was sentenced to 12 months and a day imprisonment and Michael Egger was sentenced to 30 months’ imprisonment.
Two other defendants were previously sentenced in connection with related tax refund conspiracies. On April 14, 2014, Joseph Andrew Murray, 43, of Mesa, Ariz. was sentenced to 30 months’ imprisonment and Samuel George Hamilton, 43, of Peoria, Ariz. was sentenced to 24 months’ imprisonment.
According to their respective plea agreements, all four defendants participated in a scheme to obtain, and to aid others to obtain, the payment of refunds from the Internal Revenue Service through the preparation and filing of federal individual income tax returns that contained false and fictitious refund claims. In most instances, the defendants would cause pre-paid debit cards to be created in the names of the individuals for whom they were filing the returns and would have these cards mailed to addresses that they controlled. Once the refunds were deposited, cash was withdrawn from ATMs and the proceeds were distributed between the defendants and others. According to the indictments, each return was filed in the name of a prisoner located in an Arizona State prison, many of whom were incarcerated during all or part of the tax year upon which the return was filed.
In total, there were three related but distinct conspiracies. Kristi Egger was involved in separate conspiracies with Michael Egger and Joseph Murray. Michael Egger was also involved in a separate conspiracy with Samuel Hamilton. Kristi Egger was ordered to pay $166,866 in restitution, Michael Egger was ordered to pay $104,441 in restitution, Joseph Murray was ordered to pay $14,020 in restitution, and Samuel Hamilton $8,208 in restitution.
The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigation. The prosecution was handled by Howard D. Sukenic, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-13-01245/6/7-SRB
RELEASE NUMBER: 2014-043_Egger etalFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former Virginia ABC Employee Pleads Guilty to Embezzlement ChargesRead the Press Release
RICHMOND, Va. – A former employee of the Virginia Department of Alcoholic Beverage Control (ABC) pleaded guilty today to stealing over $239,000 in funds that were intended for educational programs to combat underage drinking.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the guilty plea was accepted by U.S. District Court Judge John A. Gibney.
Steven Hammond, Jr., 29, of Richmond, Virginia, pleaded guilty to a one-count criminal information charging him with theft from a program receiving federal funds. Hammond faces a maximum of ten years in prison when he is sentenced on Jan. 14, 2015.
“Hammond embezzled money that was intended to help save lives and improve public safety by combatting underage drinking,” said U.S. Attorney Boente. “I commend our partners in state and federal law enforcement for their cooperative efforts to unravel this fraud and hold the defendant accountable.”
“This is a simple case of greed by someone who abused the public trust for his own benefit,” said Attorney General Mark Herring. “Cooperation between state and federal partners was key to resolving this case, as it so often is. The public should be reassured that the scam was detected, shut down, and the person responsible is being held accountable. We will not allow people like this to defraud taxpayers and undermine the public’s confidence in our hardworking public servants.”According to court documents, Hammond used his position as education coordinator at ABC to divert to himself funds that were intended to combat underage drinking through enforcement and education programs and conferences. Beginning as early as 2009, Hammond began defrauding ABC by having the department write checks of less than $5,000 to various acquaintances he claimed would operate an educational program. The acquaintances would then cash the checks on Hammond’s behalf, usually in exchange for a small return. The investigation revealed Hammond stole more than $239,000 in funds that were intended for the programs to combat underage drinking.
When an internal ABC audit in the spring of 2013 discovered Hammond’s scheme, he was placed on leave and additional financial controls were put into place. The case was initially investigated by the Virginia State Police and The Virginia Office of Attorney General, which has authority to prosecute crimes involving the handling of funds by a state agency or the theft of state property. Because the embezzled funds also involved federal grants, the Federal Bureau of Investigation joined the investigation.
This case was investigated by the FBI, Virginia State Police and Office of Attorney General. Michael Jagels, Special Assistant U.S. Attorney and Virginia Assistant Attorney General, is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:14-cr-227.Former U.S. Navy Military Sealift Command Manager Sentenced for Receiving BribesRead the Press Release
Kenny E. Toy, 54, the former Afloat Programs Manager at the United States Navy Military Sealift Command, was sentenced today to serve 96 months in prison for receiving bribes.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement today after sentencing by United States Chief Judge Rebecca Beach Smith of the Eastern District of Virginia.
On Feb. 12, 2014, Toy pleaded guilty to a criminal information charging him with one count of bribery. According to the statement of facts filed with Toy’s plea agreement, Toy was employed as the Afloat Programs Manager in the N6 Command, Control, Communication, and Computer Systems Directorate at the Military Sealift Command, which is the leading provider of transportation for the United States Navy. In approximately November 2004, Toy joined an extensive bribery conspiracy that spanned five years, involved multiple co-conspirators, including two different companies, and resulted in the payment of more than $265,000 in cash bribes, among other things of value, to Toy and to Scott B. Miserendino Sr., a former government contractor who performed work for the Military Sealift Command.
At his plea hearing, Toy admitted that he accepted monthly cash bribes of approximately $3,000, as well as a flat screen television and a paid vacation to the Outer Banks in North Carolina, from co-conspirators Dwayne A. Hardman, Roderic J. Smith, Michael P. McPhail and Adam C. White, all of whom were employed at a government contracting company referred to as Company A in court documents. Toy also admitted that he accepted a $50,000 cash bribe in May 2009 from Hardman and another co-conspirator, Timothy S. Miller, both of whom were employed at a government contracting company referred to as Company B in court documents. In exchange for the bribes, Toy provided favorable treatment to Company A and Company B in connection with Military Sealift Command related business.
As part of his guilty plea, Toy also admitted to engaging in a scheme to conceal his criminal activity. Toy admitted to causing more than $88,000 to be paid to Hardman in an attempt to prevent Hardman from reporting the bribery scheme to law enforcement authorities.
Toy was also ordered to serve a supervised release term of three years following his prison sentence, and ordered to forfeit $100,000.
Earlier this year, four other individuals pleaded guilty in connection with the bribery scheme. On Feb. 18, 2014, Hardman, the co-founder of Company A and Company B, pleaded guilty to providing bribes to Toy and Miserendino. On Feb. 19, 2014, McPhail, a former employee at Company A, pleaded guilty to conspiracy to commit bribery. On April 4, 2014, White, a former vice president at Company A, pleaded guilty to conspiracy to commit bribery. On March 5, 2014, Smith, the former president of Company A, pleaded guilty to conspiracy to bribe public officials. On June 23, 2014, United States District Judge Henry Coke Morgan sentenced Smith to serve 48 months in prison followed by one year of supervised release and ordered him to forfeit $175,000.
On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Timothy S. Miller, a businessman whose company sought contracting business from the Military Sealift Command. The indictment charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery. Trial is set for Sept. 30, 2014, before Chief Judge Rebecca Beach Smith.
Charges contained in an indictment are merely allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, NCIS and DCIS. The case was prosecuted by Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia.Former U.S. Navy Military Sealift Command Manager Sentenced for Receiving BribesRead the Press Release
NORFOLK, Va. – Kenny E. Toy, 54, the former Afloat Programs Manager at the United States Navy Military Sealift Command, was sentenced today to serve 96 months in prison for receiving bribes.
United States Attorney Dana J. Boente of the Eastern District of Virginia, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Acting Executive Assistant Director Charles T. May Jr. of the Naval Criminal Investigative Service (NCIS) Atlantic Operations and Special Agent in Charge Royce E. Curtin of the FBI’s Norfolk Field Office made the announcement today after sentencing by United States Chief Judge Rebecca Beach Smith of the Eastern District of Virginia.
On Feb. 12, 2014, Toy pleaded guilty to a criminal information charging him with one count of bribery. According to the statement of facts filed with Toy’s plea agreement, Toy was employed as the Afloat Programs Manager in the N6 Command, Control, Communication, and Computer Systems Directorate at the Military Sealift Command, which is the leading provider of transportation for the United States Navy. In approximately November 2004, Toy joined an extensive bribery conspiracy that spanned five years, involved multiple co-conspirators, including two different companies, and resulted in the payment of more than $265,000 in cash bribes, among other things of value, to Toy and to Scott B. Miserendino Sr., a former government contractor who performed work for the Military Sealift Command.
At his plea hearing, Toy admitted that he accepted monthly cash bribes of approximately $3,000, as well as a flat screen television and a paid vacation to the Outer Banks in North Carolina, from co-conspirators Dwayne A. Hardman, Roderic J. Smith, Michael P. McPhail, and Adam C. White, all of whom were employed at a government contracting company referred to as Company A in court documents. Toy also admitted that he accepted a $50,000 cash bribe in May 2009 from Hardman and another co-conspirator, Timothy S. Miller, both of whom were employed at a government contracting company referred to as Company B in court documents. In exchange for the bribes, Toy provided favorable treatment to Company A and Company B in connection with Military Sealift Command related business.
As part of his guilty plea, Toy also admitted to engaging in a scheme to conceal his criminal activity. Toy admitted to causing more than $88,000 to be paid to Hardman in an attempt to prevent Hardman from reporting the bribery scheme to law enforcement authorities.
Toy was also ordered to serve a supervised release term of three years following his prison sentence, and ordered to forfeit $100,000.
Earlier this year, four other individuals pleaded guilty in connection with the bribery scheme. On Feb. 18, 2014, Hardman, the co-founder of Company A and Company B, pleaded guilty to providing bribes to Toy and Miserendino. On Feb. 19, 2014, McPhail, a former employee at Company A, pleaded guilty to conspiracy to commit bribery. On April 4, 2014, White, a former vice president at Company A, pleaded guilty to conspiracy to commit bribery. On March 5, 2014, Smith, the former president of Company A, pleaded guilty to conspiracy to bribe public officials. On June 23, 2014, United States District Judge Henry Coke Morgan sentenced Smith to 48 months in prison followed by one year of supervised release and ordered him to forfeit $175,000.
On May 23, 2014, a grand jury in the Eastern District of Virginia indicted Miserendino and Timothy S. Miller, a businessman whose company sought contracting business from the Military Sealift Command. The indictment charges Miserendino with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to commit obstruction of criminal investigations and to commit tampering with a witness, and one count of obstruction of criminal investigations. The indictment charges Miller with one count of conspiracy to commit bribery and two counts of bribery. Trial is set for Sept. 30, 2014, before Chief Judge Rebecca Beach Smith.
Charges contained in an indictment are merely allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI, NCIS and DCIS. The case was prosecuted by Assistant U.S. Attorney Stephen W. Haynie of the Eastern District of Virginia and Trial Attorney Emily Rae Woods of the Criminal Division’s Public Integrity Section of the Justice Department.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Former Radio Host John Balyo Pleads Guilty to Federal Child Exploitation ChargesRead the Press Release
GRAND RAPIDS, MICHIGAN – Former local radio host John Richard Balyo, of Grand Rapids, pled guilty in federal court today to producing and possessing child pornography. As a result of his plea, Balyo faces a mandatory minimum sentence of 15 years in prison, up to a maximum of 50 years and must register as a sex offender. U.S. District Judge Robert Holmes Bell will determine the final sentence and the amount owed in restitution at a later hearing. His plea agreement requires his full cooperation in other federal, state, or county investigations. He also agreed to forfeit computers, photographic equipment, the contents of a storage unit, and material used to sexually abuse or exploit children.
John Balyo met up with another adult and a 12-year-old boy in Kalamazoo on April 19, 2014. Balyo rented a hotel room where he took sexually explicit photographs of the boy, including some involving bondage with the child in handcuffs. Balyo engaged in sexual conduct with the child and took photographs on both his cell phone and a camera. At the end, Balyo paid the child cash and left. He possessed these images and others on various devices, including a computer. Balyo was arrested by Calhoun County on June 20, 2014, where he still faces charges for criminal sexual conduct. Homeland Security Investigations (HSI) and Michigan State Police executed a search warrant at Balyo’s residence that same day and later searched a storage unit where they found additional material relating to child abuse and sexual exploitation. HSI and MSP later discovered that Balyo had concealed his computer and other belongings with an acquaintance shortly before his arrest. After seeing the news reports, that person turned over the property to police. The computer contained multiple photographs of child pornography, including the ones from the Kalamazoo hotel room on April 19.
“Individuals who prey upon children and create sexually graphic images will be found, and they will be prosecuted. The U.S. Attorney’s Office in West Michigan and our state and federal partners are dedicated to the protection of children. These child predators should know that taking a single illegal picture exploiting a child means at least 15 years in a federal prison. They could also forfeit the computers, cameras, and even the houses that are used to sexually exploit children. We are committed to securing restitution for the victims to pay for the cost of medical care, counseling, and potential loss of income,” said U.S. Attorney Patrick Miles, Jr.
“Child pornography creates a permanent record of a child being sexually exploited,” said Marlon Miller, special agent in charge of HSI Detroit. “These children are continually victimized every time those images are transmitted, downloaded, shared, or viewed. HSI will continue to work closely with the U.S. Attorney's Office and other law enforcement agencies to protect our children and aggressively pursue child predators.”
The investigation was conducted by HSI, in cooperation with the Michigan State Police ICAC, Battle Creek Police Department, Kalamazoo Department of Public Safety, and Kent County Sheriff’s Department. Assistant U.S. Attorney Tessa K. Hessmiller is prosecuting the federal case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; the Michigan State Police Internet Crimes Against Children Task Force (ICAC); the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.
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Former President and CFO of Advanced Materials Sentenced for Bank FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 48-year-old Collin County businessman has been sentenced to federal prison for bank fraud in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
William Guy Mortensen, formerly of Plano, Texas, pleaded guilty on Aug. 1, 2012 to bank fraud and was sentenced to 110 months in federal prison today by U.S. District Judge Ron Clark. Judge Clark also ordered Mortensen to pay restitution in the amount of $1,984,496.32.
According to information presented in court, Mortensen was the president and chief financial officer of Advanced Materials, Inc., a publicly traded company. In July 2007, Mortensen requested that Chase Bank extend and enlarge an existing $1.5 million line of credit for Advanced Materials. The loan was secured by Advanced Materials’ accounts receivable. In order to induce the bank to extend the loan, and enlarge the line of credit to $2 million, Mortensen inflated the accounts receivable numbers to make the company’s financial condition appear better than it actually was
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney J. Andrew Williams.
Former New York City Council Member Daniel Halloran Found Guilty in Federal Court of Bribery and Fraud Charges Connected to 2013 Mayor’S RaceRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that former New York City Council Member DANIEL HALLORAN was found guilty in federal court of arranging the bribery of New York City Republican leaders to allow New York State Senator Malcolm Smith, a Democrat, to run as a Republican candidate for New York City Mayor in 2013. In addition, HALLORAN was found guilty of accepting a $15,000 cash bribe in exchange for designating up to $80,000 in New York City funds to a non-profit entity that would allow the money to be embezzled through a no-show job. HALLORAN was convicted in White Plains federal court after a two-month jury trial before U.S. District Judge Kenneth M. Karas.
U.S. Attorney Preet Bharara stated: “With today’s verdict of guilty reached by an impartial and independent jury, the clean-up of corruption in New York continues in courtrooms. As the jury unanimously found, Daniel Halloran played a key role in two distinct political corruption schemes: first, for $20,000, Halloran was willing and able to serve as a go-between to deliver bribes to political party officials, and second he also took nearly $25,000 in cash and illegal campaign contributions to steer $80,000 in City Council money to other bribe payers. Dan Halloran was the lone defendant in the trial that just ended in his conviction, but he is unfortunately not alone in a crowded field of New York officials who are willing to sell out their offices for self-enrichment. This Office will continue the vigorous prosecution of political corruption to secure for the people of New York – regardless of party affiliation – what they deserve: the honest labors of their elected representatives. And we will continue to partner with the FBI, whose outstanding investigative work in this case was instrumental to achieving a just result.”
According to the Complaint and the Indictment filed in federal court and the evidence presented at trial:
HALLORAN was elected to the New York City Council in 2009, representing a district in Queens, New York. While a member of the city council, HALLORAN participated in two overlapping criminal schemes that involved the payment of bribes to obtain official action. First, HALLORAN arranged for $110,000 in cash bribes to be paid to leaders of the Republican Party so that they would allow Smith to run for mayor on the Republican Party’s ballot line. Second, HALLORAN accepted an up-front kickback of $15,000 for designating up to $80,000 of New York City Council discretionary funding to a company he believed was controlled by those who paid him the bribes.
The Bribery of Republican Party Leaders
From in or about November 2012 until his arrest in April 2013, HALLORAN agreed with Smith, an undercover FBI agent posing as a wealthy real estate developer (the “UC”), and a cooperating witness (“CW”) to bribe New York City Republican Party leaders in exchange for their authorization of Smith to appear as a Republican candidate for New York City Mayor in 2013, even though Smith is a registered Democrat.
In furtherance of the scheme, HALLORAN arranged for the UC and the CW to meet Vincent Tabone, the Vice Chairman of the Queens County Republican Party, Joseph Savino, the Chairman of the Bronx County Republican Party, and other party leaders so they could be paid bribes in exchange for supporting Smith’s bid to compete for the Republican nomination. HALLORAN also negotiated the size of bribes that the party leaders required in order to authorize Smith to run on the Republican ballot line. During a meeting with the UC, Tabone accepted a $25,000 cash bribe and agreed to accept another $25,000 after his committee authorized Smith to compete in the Republican primary. Savino similarly accepted a $15,000 cash bribe and agreed to accept another $15,000 after he voted to authorize Smith to compete for the Republican ballot line. In return for his efforts, HALLORAN accepted $15,500 as a down payment on a “broker’s” fee of at least $75,000 and expected to be appointed First Deputy Mayor if Smith was elected mayor.
Bribery for City Council Discretionary Funding
From in or about August 2012 until his arrest in April 2013, HALLORAN accepted a bribe of $15,000 cash from the UC and the CW in exchange for agreeing to steer up to $80,000 in New York City Council discretionary funding to a consulting company he believed was controlled by the UC and the CW (the “Company”). In furtherance of this scheme, HALLORAN wrote two letters on New York City Council letterhead about this funding, one to civic organizations and the other to the Company. Despite suggesting in these letters that work would be done by the Company to support the allotment of taxpayer money, HALLORAN agreed with the UC and the CW that the Company would provide no services.
HALLORAN, 42, of Queens, New York, was found guilty of one count of conspiracy, which carries a maximum sentence of 5 years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; and two counts of Travel Act bribery, each of which carries a maximum sentence of 5 years in prison. Each of the counts of conviction also carries a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
HALLORAN is scheduled to be sentenced by Judge Karas on December 12, 2014, at 2:00 p.m.
Mr. Bharara praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s White Plains Division and Public Corruption Unit. Assistant United States Attorneys Douglas B. Bloom and Justin Anderson are in charge of the prosecution.
Redacted Indictment (Halloran)
Former Miami-Dade Department of Public Works Employee Sentenced for Accepting $150,000 in Bribes from ContractorRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Donnell Young, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that today United States District Judge Cecilia M. Altonaga sentenced Garfield Perry, 67, of North Miami Beach, to 60 months imprisonment, to be followed by one year of supervised release. Perry was also ordered to pay a fine of $12,500. Perry previously pled guilty to a one-count information charging him with conspiring to accept bribes in connection with programs receiving federal funds and to commit extortion, all in violation of Title 18, United States Code, Section 371.
According to a previously filed stipulation of facts, from at least 2002 through 2009, Perry was the Roadway Lighting Coordinator for the Department of Public Works in Miami-Dade County. In this capacity, Perry was responsible for, among other things, overseeing the maintenance of more than 22,000 street lights in the county’s roadway system. The Information charges that from 2006 through October 2009, Perry accepted bribe payments from a Manufacturer’s Representative totaling approximately $150,000. Perry regularly directed the Manufacturer’s Representative to make the bribe payments by paying down debts owed by Perry, including payments on two home mortgages, one car loan, two home insurance policies, two car insurance policies, and eight credit cards. Perry accepted as bribe payments from the Manufacturer’s Representative, cruise vacations, domestic and international airline tickets, payments for hotels and theater tickets. Perry regularly directed the Manufacturer’s Representative to make bribe payments by issuing checks payable to third parties, and, after the checks were cashed, determined the manner in which the proceeds were to be split. Perry falsely certified to Miami-Dade County that he was not engaged in any outside employment and did not receive any gratuities. In return for the bribe payments, Perry helped to ensure that lighting products used in Public Works’ projects were represented by the Manufacturer’s Representative.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case was prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Manchester Police OfficerRead the Press Release
Pleads Guilty To Federal Offense
CONCORD, NEW HAMPSHIRE – Joseph Cespedes, 37, formerly a police officer in Manchester, New Hampshire, pleaded guilty in United States District Court for the District of New Hampshire to misprision of a felony, announced United States Attorney John P. Kacavas.
Under federal law, it is unlawful for anyone who has knowledge of the commission of a federal felony to conceal the crime and withhold information about it from federal authorities.
This investigation began in 2011, when the Department of Homeland Security – Homeland Security Investigations (HSI) learned that Cespedes – a Manchester police officer at the time – was associating with an individual in Lawrence, Massachusetts, who was the target of a separate drug-related investigation. Federal agents also discovered that the targeted drug dealer enlisted Cespedes to run criminal records checks on certain stolen identities to determine whether they were clear of outstanding arrest warrants. Cespedes ran the criminal records checks through unwitting Manchester Police Department dispatchers. When those criminal records checks came back negative, Cespedes sold that information to the drug dealer for $350.00 and a small quantity of cocaine. Rather than report the drug dealer’s activities to the proper authorities, Cespedes affirmatively concealed that felonious conduct.
HSI shared the results of its investigation with the FBI, who, in turn, shared it with the Manchester Police Department. Within days, Cespedes preemptively resigned from the Manchester Police Department, ostensibly for reasons unrelated to this investigation. Despite his resignation, the investigation into his activities continued. During a subsequent interview conducted by federal agents and Manchester police, Cespedes admitted his association with the drug dealer and his illegal conduct on the drug dealer’s behalf.
United States Attorney John P. Kacavas said, “I want to commend HSI, the FBI and the Manchester Police Department for their joint efforts in bringing this rogue former police officer to justice. His illegal conduct is a betrayal not only to the community he was sworn to serve but also to the officers of the Manchester Police Department with whom he served. His guilty plea today is a testament to the determination of law enforcement and this office to find, deter, and punish criminals regardless of their status or occupation.”“I would like to congratulate my special agents for following the evidence wherever it lead, but I would equally like to commend the Manchester Police Department for their swift and decisive action,” said special agent in charge of HSI Boston, Bruce Foucart. "It's always difficult when the actions of a single officer stains the badge, honor and integrity of all the other brave men and women who choose to put their lives on the line in order to uphold the law. “
Cespedes faces up to three years in federal prison and a possible fine of $250,000.00. He is scheduled to be sentenced on November 4, 2014.
The case was investigated by the U.S. Department of Homeland Security-Homeland Security Investigations, the Federal Bureau of Investigation, and the Manchester Police Department. The case is being prosecuted by Assistant United States Attorney Robert Kinsella.
Former Federal Employee Sentenced to Prison in $546,785 Fraudulent Tax Refund SchemeRead the Press Release
Recruited Individuals Who Did Not Owe Taxes Because They Had Little Or No Earned Income
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Sheila Anderson-Cloude, age 34, of Notthingham, Maryland, to 15 months in prison, followed by three years of supervised release, for her role in a conspiracy to obtain fraudulent tax refunds. Judge Bennett also ordered Anderson-Cloude to pay restitution of $546,785.The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kathryn Jones, U.S. Department of Transportation, Office of Inspector General, Washington Regional Office.
"Criminal conspiracies using fraudulent refund schemes damage the integrity of the U.S. financial system. We as taxpayers ultimately pay the price for the greed of a few," said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. "IRS-CI, along with our law enforcement partners and the Maryland United States Attorney's Office, will continue to utilize every tool available to investigate those who conspire with each other to abuse the U.S. Treasury for their own personal gain."
According to Anderson-Cloude’s plea agreement, she was a Financial Management Specialist with the Federal Motor Carrier Safety Administration. From February 2010 through April 2013, Anderson-Cloude conspired with Tonia Lawson and her daughters Kiara Skipwith and Jasmine Thomas, to prepare fraudulent tax returns. The defendants recruited individuals who did not owe taxes because they had little or no earned income, and convinced these individuals that they could obtain a substantial refund and therefore should file a federal individual income tax return. Generally, Lawson, Skipwith and Thomas recruited prospects for the scheme, using a variety of methods, including paying referral fees to those who brought recruits to them.
Lawson, Skipwith and Thomas provided the recruits’ personal information to Anderson-Cloude, who would prepare the fraudulent return. The recruits provided limited income information. False wages and educational expenses were used to falsely claim tax credits. Anderson-Cloude, Lawson, Skipwith and Thomas misled the recruits by telling them that the refunds they had received were smaller than the refund amounts Anderson-Cloude had actually listed on the fraudulent returns. The “profit” for Anderson-Cloude and her co-conspirators was the difference between the refund claimed on each tax return and the smaller amount actually paid to the recruit.
For tax years 2009 through 2012, Anderson-Cloude was involved in the preparation of at least 90 fraudulent tax returns based upon the recruits referred by Lawson, Skipwith, Thomas and others. These fraudulent returns generated illicit refunds totaling $546,785. In 2011 alone, Anderson-Cloude received at least $104,961 in profits from her role in the conspiracy.
Tonia Patrice Lawson, age 43, of Middle River, Maryland, pleaded guilty and was sentenced to 10 months in prison and ordered to pay restitution of $546,785. Jasmine L. Thomas, age 26, of Baltimore; and Kiara A. Skipwith, age 24, of Parkville, Maryland, also pleaded guilty to their roles in the scheme. Thomas and Skipwith were each sentenced to three years’ probation and ordered to pay restitution of $90,579 and $199,722, respectively.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised IRS Criminal Investigation and DOT-OIG for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Gregory R. Bockin, who prosecuted the case.
Federal Court Sentenced Former Davenport Man on Possession of Child Pornography ChargeRead the Press Release
DAVENPORT, IA - On July 28, 2014, Michael Anthony McDaniel, age 46, formerly of Davenport, Iowa, was sentenced by United States District Court Judge John A. Jarvey to 84 months imprisonment, after pleading guilty to possession of child pornography, announced United States Attorney Nicholas A. Klinefeldt. McDaniel was also ordered to serve five years of supervised release following the term of imprisonment, and to pay $100 towards the Crime Victims Fund. McDaniel will also be required to register as a sex offender.
In March 2011, a member of the Iowa Internet Crimes Against Children Task Force and Dewitt, Iowa, Police Department accessed a shared folder and downloaded child pornography videos and images identified as belonging to McDaniel. On April 25, 2011, a search of McDaniel’s residence was conducted pursuant to a search warrant. Officers found and seized computer equipment and hard drives possessed by McDaniel. McDaniel admitted to possession of this computer equipment and to the knowledge that the involved hard drives contained sexually explicit images of minors. McDaniel downloaded images of child pornography found using a file sharing software and as part of a computer repair business. A forensic examination of the hard drives, seized by the Davenport, Iowa, Police Department, found over 50 videos and 46 images of child pornography.
This case was investigated by the Iowa Internet Crimes Against Children Task Force, the Dewitt, Iowa, Police Department, the Davenport, Iowa, Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Eight Additional Defendants Charged in White Plains Federal Court in Orange County Heroin Trafficking ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, George Venizelos, Assistant Director-In-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), Chief Ramon Bethencourt of the City of Middletown Police Department, announced the arrest of seven defendants and the unsealing of a Superseding Indictment charging a conspiracy to distribute over a kilogram of heroin in and around Orange County, New York. Fourteen defendants were previously charged in the case in November 2013. Three of the new defendants are also charged with possessing firearms in furtherance of the heroin distribution conspiracy.
U.S. Attorney Preet Bharara stated: “These defendants stand accused of spreading heroin across Orange County, with their destructive drugs backed by dangerous weapons. Now they will have to answer those charges, thanks to the cooperative efforts of the FBI and our local partners.”
FBI Assistant Director-in-Charge George Venizelos stated: “Today, we announce the arrest of seven individuals who sought to traffic heroin in the Orange County area with the aid of firearms. The FBI remains committed to working with our law enforcement partners to investigate those who introduce drugs and other dangers into our neighborhoods.”
New York State Police Superintendent Joseph A. D'Amico stated: "The new defendants being charged today were part of a heroin distribution network operating on the streets of Middletown. The New York State Police are committed to identifying and removing these dangerous drug dealers from our community. We will continue to work closely with our law enforcement partners, to make sure our neighborhoods are safe and the individuals who choose to engage in this type of illegal activity are held accountable."
The Superseding Indictment charges eight new defendants, DESIO ALLEN, a/k/a “T.O.,” 24, JUSTICE BEARD, 25, EBAN CARRION, a/k/a “Five,” 23, BARRY COOPER, a/k/a “B-Nyse,” 21, TAUREAN LIGHTFOOT, a/k/a “T-Streets,” 20, RICHARD LOCKETT, a/k/a “Wall Street,” 27, CLIFFORD SHAMSUNDAR, a/k/a “Face,” 22, and RASHID WESTON, a/k/a “Gutta,” 26, with conspiring to distribute, and possess with intent to distribute, over a kilogram of heroin. The Superseding Indictment also charges ALLEN, COOPER, and WESTON with possessing firearms in furtherance of the conspiracy. MIGUEL MARGOLLA, 30, and CARLOS MARTINEZ, a/k/a “B-Way,” 24, who were previously charged in the case, are also named in the Superseding Indictment. MARGOLLA is charged with participating in the heroin distribution conspiracy. MARTINEZ is charged with participating in the heroin distribution conspiracy and possessing firearms in furtherance of the conspiracy.
The charge against each defendant and the corresponding maximum potential penalties are outlined in the chart attached to this press release.
Seven of the new defendants charged in the Superseding Indictment were arrested today or had previously been taken into custody. They were presented in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy and were detained. One defendant, EBAN CARRION, remains at large as a fugitive.
Mr. Bharara praised the outstanding investigative work of the FBI, the City of Middletown Police Department, the New York State Police, the Orange County Sherriff’s Department, the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), the U.S. Marshals Service, the Town of Wallkill Police Department, and the Town of Ramapo Police Department.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Michael Gerber is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Orange County Heroin.Indictment_Redacted
Chart Orange HeroinEdcouch Woman Pleads Guilty to Embezzling More Than $90K from Halfway HouseRead the Press Release
McALLEN, Texas – Ofelia Alvarado Vallejo, 44, of Elsa, has admitted to embezzling more than $90,000 from the Mid Valley House Residential Reentry Center when she worked there as an administrative assistant, announced U.S. Attorney Kenneth Magidson.
Vallejo admitted that from March 2012 through and February 2013, she embezzled more than 600 money orders and vendor checks that belonged to Mid Valley and to the Federal Bureau of Prisons. The funds included subsistence payments by Mid Valley residents (typically a quarter of a Mid Valley resident’s income), payments for anger-management classes and vendor checks that were commissions from laundry services. Vallejo was responsible for collecting all of these funds, posting the credit items to Mid Valley financial records and depositing the credit items into Mid Valley’s corporate account at Bank of America.
Instead, she deposited the money orders and vendors checks into her personal accounts with JP Morgan Chase and Bank of America for her own benefit. She also falsified records to hide her criminal misconduct. For example, she would forge the information on the money orders by replacing the payee information with her name and also falsify Mid Valley’s financial records to conceal the missing funds.
During the one-year period beginning on March 1, 2012, Mid Valley received more than $10,000 in federal funding.
Under the plea agreement, Vallejo has agreed to pay back the funds that she embezzled as restitution.
U.S. District Judge Micaela Alvarez has set sentencing for Oct. 22, 2014, at which time she faces up to 10 years in federal prison. She was permitted to remain on bond pending that hearing.
This case was investigated by Department of Justice - Office of Inspector General with the assistance of the Edinburg Police Department. Assistant U.S. Attorney Christopher Sully is prosecuting.
Drug Trafficker and Money Launderer Sentenced to 18 Years in PrisonRead the Press Release
PHOENIX– On July 28, 2014, Rocky Delgado Marquez, 36, of Phoenix, Ariz., was sentenced by U.S. District Judge David G. Campbellto 18 years in prison. Marquez pleaded guilty on April 10, 2014 to conspiracy to possess with intent to distribute 1,000 kilograms or more of marijuana, conspiracy to commit money laundering, and felon in possession of a firearm, all felonies.
On May 1, 2012, Marquez was charged with numerous marijuana trafficking and money laundering offenses. The evidence showed that Marquez was responsible for coordinating the importation of marijuana from Mexico into the United States. He recruited load drivers and obtained vehicles that were outfitted with hidden compartments to hold hundreds of pounds of marijuana. Once the marijuana was in the United States, Marquez was responsible for distributing the marijuana to customers primarily in the Midwest. The cash profits were collected and returned to Marquez in Phoenix. Marquez purchased homes, land, and vehicles with narcotics proceeds totaling over $745,000. During the investigation, law enforcement agents seized approximately 5,290 pounds of marijuana, $2,713,000 in U.S. currency, one home, two parcels of land, and several vehicles.
On May 14, 2012, Marquez escaped from the Maricopa County Lower Buckeye Jail. On Jan. 14, 2013, after an eight-month search, Marquez was arrested in the Detroit area by the U.S. Marshals Service. Marquez was in possession of an assault-style rifle with a loaded high-capacity magazine. He had been convicted previously of misconduct involving weapons, a felony, in Maricopa County. On Jan. 20, 2013, Marquez escaped from a Wayne County, Michigan jail facility and fled to Mexico. Following an intensive manhunt by the U.S. Marshals Service, he was arrested in Mexico on Feb. 26, 2013. Marquez was returned to the United States on Feb. 27, 2013, and has remained in custody.
The investigation in this case was conducted by Homeland Security Investigations-Phoenix and the United States Marshals Service in Phoenix and Detroit. The prosecution was handled by Assistant U.S. Attorneys Jonell L. Lucca, District of Arizona, Phoenix and Margaret M. Smith, of the Eastern District of Michigan.
CASE NUMBER: CR-12-00906-PHX-DGC and CR-14-00484-PHX-DGC
RELEASE NUMBER: 2014-044_MarquezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Director of Nursing Pleads Guilty in Miami for Role in $7 Million Health Care Fraud SchemeRead the Press Release
A former director of nursing pleaded guilty today in connection with a health care fraud scheme involving Anna Nursing Services Corp. (Anna Nursing), a defunct home health care company in Miami.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Acting Special Agent in Charge Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.
Armando Buchillon, 42, of Hialeah, Florida, pleaded guilty before U.S. District Judge Joan A. Lenard in the Southern District of Florida to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Oct. 6, 2014, before Judge Lenard.
According to court documents, Buchillon was a director of nursing at Anna Nursing, a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. The owners and operators of Anna Nursing agreed to and actually did operate Anna Nursing for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.
As part of the fraudulent scheme, Buchillon and his co-conspirators regularly falsified patient documentation in order to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for or receive such services. In addition, Buchillon paid kickbacks and bribes to patient recruiters, in return for the recruiters providing patients to Anna Nursing for home health care and therapy services that were medically unnecessary and/or were not provided. Buchillon also worked as a patient recruiter for Anna Nursing and was paid kickbacks and bribes by the owner of Anna Nursing. Buchillon and his co-conspirators caused the submission of false and fraudulent claims to Medicare on behalf of these beneficiaries.
From approximately October 2010 through approximately April 2013, Anna Nursing was paid by Medicare approximately $7 million for fraudulent claims for home health care services that were medically unnecessary and/or were not provided.
The case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. This case is being prosecuted by Trial Attorneys A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .Conspirator Admits to Stealing Aluminum Carts from the Postal ServiceRead the Press Release
Stole 2,031 Containers Which Cost Over $2.8 Million to Replace
Baltimore, Maryland - Roland Michael Muir, age 57, of Glen Burnie, Maryland, pleaded guilty today to conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service.
The plea agreement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division; and Anne Arundel County Police Chief Kevin Davis."Many citizens across Anne Arundel County and the region are unaware of the impact that metal thefts have on our community," said Anne Arundel County Police Chief Kevin Davis. "We formed our Metal Unit in January to concentrate on these types of crimes and this investigation highlights the financial strain these thefts place on businesses, costs that are often passed on to our citizens. I commend the work of our detectives and our federal partners to bring this investigation to a successful prosecution."
The U.S. Postal Service used and stored mail transport equipment, including large aluminum carts known as over-the-road containers. Muir worked for a private mailer company located in Baltimore, driving a box truck.
According to his plea agreement, from July 2010 to 2014, Muir drove his employer’s box truck to two U.S. Postal Service bulk mail centers in Capitol Heights where he stole the over-the-road containers and loaded them on the truck. A co-conspirator accompanied Muir during the thefts, which typically occurred between midnight and 2:00 a.m. The co-conspirators then drove to a warehouse where they used spray paint to cover the U.S. Postal Service markings on the containers. They drove the truck to a metal recycler and sold the containers for scrap value, receiving about $1,300 in cash for each transaction.
Muir and his co-conspirator changed metal recyclers when questioned about the source of the containers, or when the recyclers refused to buy the containers. In the fall of 2013 when Muir’s employment position no longer allowed him access to his employer’s truck, his co-conspirator rented a truck to use in the scheme.
During Muir’s participation in the scheme, approximately 2,031 containers were stolen from the U.S. Postal Service on 253 days. The replacement cost of these containers is $2,873,865. The containers were sold to metal recyclers for $323,175.71 in cash.
Muir faces a maximum sentence of five years in prison for the conspiracy and 10 years in prison for the theft charge. U.S. District Judge Richard D. Bennett scheduled sentencing for October 28,2014, 2014 at 3:00 p.m.
Co- defendant Aaron Kevin Howard, age 52, of Brooklyn, Maryland, was charged by indictment with conspiring to steal, and theft of, aluminum carts from the U.S. Postal Service. Howard pleaded not guilty on May 9, 2014 and is scheduled for trial on September 2, 2014.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division and Anne Arundel County Police for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Paul E. Budlow, who is prosecuting the case.
Columbia, Tennessee Man Sentenced for Stealing Equipment Worth More Than $770,000 from General Motors Spring Hill PlantRead the Press Release
Failing to Report Income from Sale of Stolen Equipment Nets Additional Charge
NASHVILLE, Tenn., - Anthony Praino, 51, of Columbia, Tennessee, was sentenced on July 28, 2014, to 30 months in prison for interstate shipment of hundreds of pieces of stolen auto manufacturing equipment, and failing to disclose to the IRS, the income he earned from selling the equipment, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Praino pleaded guilty before U.S. District Judge Todd Campbell in December 2013 and admitted that, while employed as a fork lift operator at the General Motors plant in Spring Hill, Tenn., he stole the equipment and sold it during 2011 and 2012.
Investigators with General Motors discovered that a significant amount of expensive equipment was missing and subsequently identified some of the equipment advertised for sale on eBay. The equipment was clandestinely purchased by the investigators and when it was delivered to them, the return address for the sender was determined to be Praino’s residence. General Motors referred the matter to the Maury County Sheriff’s Office and given the value and volume of the stolen equipment, the FBI and the IRS were also notified.
Agents began monitoring Praino’s activities and observed him depositing a large parcel for delivery by a local commercial shipping company. Agents determined that the shipment contained more stolen, high-dollar equipment that was being shipped to Thailand. A search warrant was obtained for Praino’s home in Columbia, Tenn., where agents discovered additional stolen General Motors equipment valued at more than $500,000.
Additional testimony at the guilty plea established that Praino had received more than $145,000 from the sale of the stolen equipment, which he failed to disclose when filing his 2011 tax return. As a result, he failed to pay about $48,000 in additional income tax, which constitutes a separate federal crime.
This case was investigated by the FBI, the IRS- Criminal Investigation and the Maury County Sheriff's Office. The government was represented by Assistant U.S. Attorney Hilliard Hester.
Collin County Man Guilty of Mail FraudRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 35-year-old Allen, Texas man has pleaded guilty to mail fraud in in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Marcus Brian Curry pleaded guilty to mail fraud today before U.S. Magistrate Judge Don D. Bush.
According to information presented in court, from June 2006 to February 2014, Curry, the owner and operator of South Coast Group, L.P., a real estate company located in Allen, Texas, devised a scheme to defraud certain homeowners and buyers. To facilitate the scheme, Curry solicited distressed homeowners through mail advertisements and convinced them they could protect their credit by transferring the title to their homes to him with the promise he would assume responsibility for making the mortgage payments. Curry would then sell the property to a new buyer representing that he was the true owner of the property, omitting that there was still an original lien holder, and in most cases, not paying the mortgage payments to the original lien holder as promised. In order to conceal the existing lien from the buyer, Curry financed the mortgage himself and had the new buyer send payments to a private mail box under his control. As a result of his fraudulent actions, Curry caused a loss to homeowners, buyers and lending institutions of approximately $2,362,350.
Curry faces up to 20 years in federal prison at sentencing. A sentencing date has not been set.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Christopher A. Eason.
Cleveland Man Sentenced to 24 Years in Prison for Robbing Euclid BankRead the Press Release
A Cleveland man was sentenced to more than 24 years in prison for robbing a bank in Euclid, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the Cleveland FBI.
Shawn Caldwell, 22, was found guilty of one count of armed bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence. He was sentenced to 292 months in federal prison today.
Germain D. Davis, Jr., 20, Julian Anderson, 23, and Dejuan Brown, 24, all of Cleveland, have each been found guilty of crimes related to the robbery and are scheduled to be sentenced in August.
The four men aided and abetted one another in robbing a PNC Bank in Euclid, Ohio, on January 24, 2014. The robbers stole approximately $39,900 from the bank and carried and brandished firearms during the robbery.
The case is being prosecuted by Assistant U.S. Attorneys M. Kendra Klump and Michelle M. Baeppler following an investigation by the Federal Bureau of Investigation and the Euclid Police Department.
Cleveland Man Indicted on Firearms ChargeRead the Press Release
A Cleveland man was indicted in federal court today for illegally having a firearm, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Malcolm L. Hoyle, 27, faces one count of being a felon in possession of a firearm and ammunition.
Hoyle possessed a .40-caliber pistol and ammunition on July 8, 2014, despite convictions in the Cuyahoga County Court of Common Pleas for involuntary manslaughter (2003), felonious assault (2005), two convictions for trafficking (both 2008) and attempted failure to comply (2009), according to the indictment.
This case is being prosecuted by Assistant U.S. Attorney Kelly L. Galvin following an investigation by the Cleveland Division of Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendant’s sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record, the defendant’s role in the offense and the characteristics of the violation.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Cincinnati Man Who Used Phone to Create Child Pornography Will Serve 20 Years in PrisonRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI – Stephen Edward Peelman, 32, Cincinnati, Ohio, was sentenced in U.S. District Court to 240 months in prison for producing sexually explicit photographs of an 11-year old child.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Cincinnati Police Chief Jeffrey Blackwell announced the sentence handed down today by U.S. District Judge Michael R. Barrett.
According to court documents, on September 14, 2012, the Cincinnati Police Department received a report identifying Peelman as a potential subject of a criminal investigation involving a minor female child. Investigation led to the search of Peelman’s residence. Among the items seized from his residence was a cellular telephone. Forensic analysis of the phone revealed it contained pornographic images of the child. Peelman pleaded guilty on March 28, 2014 to one count of production of child pornography. At the plea hearing, he admitted that he had taken the photos.
Peelman has been in custody since January 2013. Judge Barrett ordered that he not receive credit for time served. Peelman was also sentenced to remain under court supervision for the rest of his life after he serves his prison time. Under court supervision, he will be required to register as a sex offender anywhere that he lives, works or goes to school. He will also be prohibited from any contact with minor children and will not be allowed to loiter anywhere that minors congregate including playgrounds, arcades, amusement parks or public swimming pools.
Members of the Greater Cincinnati Internet Crimes Against Children (ICAC) Task Force assisted with the investigation. Agencies in the task force are the FBI, the Regional Electronics and Computer Investigations (RECI) unit from Hamilton County Sheriff Jim Neil’s Office, Homeland Security Investigations (HSI), the U.S. Marshals Service, U.S. Secret Service, Hamilton County Prosecutor Joe Deters, and the police departments in Amberley Village, Blue Ash, Cincinnati and West Chester.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the task force officers who investigated the case, as well as Assistant U.S. Attorney Christy Muncy who represented the United States in this case.
Carlsbad Man Sentenced to Almost Eleven Years in Federal Prison for Robbing Businesses in Southeastern New MexicoRead the Press Release
ALBUQUERQUE – Maurice Williams, 35, of Carlsbad, N.M., was sentenced today in federal court in Las Cruces, N.M., to 130 months in federal prison followed by three years of supervised release for violating the Hobbs Act by robbing businesses engaged in interstate commerce. Williams also was ordered to pay $3,420.00 in restitution to the victims of his criminal conduct.
The sentence was announced by U.S. Attorney Damon P. Martinez, 5th Judicial District Attorney Janetta B. Hicks, Special Agent in Charge Carol K.O. Lee of the Albuquerque Division of the FBI, Chief Kent Waller of the Carlsbad Police Department, Chief Don Raley of the Artesia Police Department, and Chief Chris McCall of the Hobbs Police Department.
Maurice Williams and five other Carlsbad residents, Bennie Juarez, 28, Logan Magby, 20, Mario Muro, 23, Rance Williams, 23, and Tyler Williams, 19, were charged with violating the Hobbs Act in a criminal complaint filed on May 29, 2013. The criminal complaint charged the six men, acting in groups, with robbing the following five commercial businesses in southeastern New Mexico between Nov. 2012 and Jan. 2013:
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The Family Dollar located at 403 W. Quay Street in Artesia, N.M., by Juarez and Maurice Williams on Nov. 15, 2012.
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The Shop-N-Go located at 22212 W. Lea Street in Carlsbad by Juarez and Rance Williams on Nov. 28, 2012.
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The Family Dollar located at 901 W. Mermod Street in Carlsbad by Juarez and Maurice Williams on Dec. 2, 2012.
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The Dollar General located at 730 N. Dal Paso in Hobbs, N.M., by Juarez, Rance Williams and Tyler Williams on Dec. 9, 2012.
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The Domino’s Pizza located at 302 S. 1st Street in Artesia by Juarez, Muro, Magby and Tyler Williams on Jan. 6, 2013.
According to the criminal complaint, each of the aforementioned robberies was committed by perpetrators who wore masks or covered their faces with bandanas and brandished firearms at the store employees.
Maurice Williams entered a guilty plea on Sept. 10, 2013, to conspiracy to rob the Family Dollar in Artesia on Nov. 15, 2012, and conspiracy to rob the Family Dollar in Carlsbad on Dec. 2, 2012. The guilty plea was entered without the benefit of a plea agreement.
Maurice Williams’ five co-defendants have entered guilty pleas to Hobbs Act robberies as follows:
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Juarez pled guilty on Aug. 20, 2013, to five counts of conspiracy to violate the Hobbs Act by robbing each of the five businesses identified above.
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Magby pled guilty on Sept. 3, 2013, to conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013.
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Muro pled guilty on Sept. 13, 2013, to conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013.
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Rance Williams pled guilty on Sept. 10, 2013, to conspiracy to rob the Shop-N-Go in Carlsbad on Nov. 28, 2012, and conspiracy to rob the Dollar General in Carlsbad on Dec. 2, 2012.
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Tyler Williams pled guilty on Sept. 13, 2013, to conspiracy to rob the Dollar General in Hobbs on Dec. 9, 2012, and conspiracy to rob the Domino’s Pizza in Artesia on Jan. 6, 2013.
The five co-defendants remain in custody pending sentencing hearings, which have yet to be scheduled. At sentencing, each faces a statutory maximum penalty of 20 years in federal prison.
These cases were brought as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this anti-violence initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
These cases were investigated by the Roswell office of the FBI, Carlsbad Police Department, Artesia Police Department and Hobbs Police Department, with assistance from the 5th Judicial District Attorney’s Office. The cases are being prosecuted by Assistant U.S. Attorneys Luis A. Martinez and Edwin Garreth Winstead III of the U.S. Attorney’s Las Cruces Branch Office.
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Carbon County Man Charged with Producing Child PornographyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that Todd Kowar, age 46, Kidder Township, Carbon County, was indicted today by a federal grand jury in Scranton on charges of producing child pornography and possessing child pornography.
According to United States Attorney Peter Smith, the grand jury alleges that Kowar persuaded and induced a minor to engage in sexually explicit conduct for the purpose of producing images of such conduct. The indictment alleges that Kowar committed the crimes between 2008 and December 2012.
The charges stem from an investigation by the Federal Bureau of Investigation, the Pennsylvania State Police, and Kidder Township Police.
Kowar faces a mandatory minimum sentence of 15 years in prison and a maximum sentence of 30 years in prison if he is convicted of the production of child pornography charge; and faces a maximum sentence of 10 years in prison if he is convicted of the possession of child pornography charge.
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."
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Canadian Antiques Dealer Charged in Manhattan Federal Court for Smuggling Rhinoceros Horns and Other Rare Wildlife ItemsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Sam Hirsch, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Dan Ashe, Director of the U.S. Fish and Wildlife Service (“USFWS”), announced that XIAO JU GUAN, a/k/a “Tony Guan,” a Canadian antiques dealer, was indicted by a federal grand jury in Manhattan today for conspiring to violate the Lacey Act and smuggle wildlife, including rhinoceros horn, elephant ivory and coral, and was also charged with committing substantive Lacey Act and smuggling crimes.
Manhattan U.S. Attorney Preet Bharara said: “There is an ever-expanding black market for objects made from endangered species that fuels the devastating and senseless slaughter of noble animals. The charges levied today are designed to deal a heavy blow to those that are deliberately profiting from the trade in rare and endangered species.”
Assistant Attorney General Sam Hirsch said: “Illegal wildlife trafficking is a multi-billion dollar business that must be stopped. The Justice Department is working vigorously to uphold the laws designed to protect rhinos and elephants and other threatened species from extinction and is working alongside our international partners to bring black-market wildlife traders to justice. We are also very grateful here for the assistance from Canadian authorities.”
USFWS Director Dan Ashe said: “As this case illustrates, the United States plays a key role in the illegal wildlife trade – often as the source of, or transit country for, poached and smuggled wildlife products headed elsewhere in the world. This makes coordination vital with our international partners as we work together to halt the slaughter of rhinos, elephants and many other imperiled species. We have a long history of collaboration with Environment Canada on wildlife trafficking and other issues, and we appreciate the invaluable assistance they’ve provided in this case.”
According to the Indictment and other documents filed in Manhattan federal court, as well as statements made at the time of GUAN’s arrest:
Rhinoceros are a rare herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. All species of rhinoceros and elephant are protected under U.S. and international law. Trade in rhinoceros horn, elephant ivory and many species of coral is regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets. An animal species listed as protected within CITES cannot be exported from the United States without prior notification to, and approval from, USFWS, including in the form of an export permit. In addition to the CITES treaty requirements, the Lacey Act makes it unlawful for a person to knowingly make a false record, account and identification for wildlife including objects made from and containing rhinoceros horn, elephant ivory and coral.
GUAN was the president and owner of an antiques business in British Columbia, Canada. With his co-conspirators, GUAN smuggled rhinoceros horns and sculptures made from elephant ivory and coral, with a market value in excess of $500,000, from various U.S. auction houses to Canada, in a deliberate effort to evade U.S. laws requiring them to obtain certain declarations and permits in order to lawfully export these rare wildlife items. To smuggle the items across the border, GUAN and his co-conspirators shipped the items to an address close to the Canadian border and then drove the items across the border, or else shipped packages containing the wildlife items directly to Canada with false paperwork, and without the required declarations or permits.
Among other unlawful transactions, on March 29, 2014, GUAN traveled from Vancouver to New York in an attempt to purchase two endangered black rhinoceros horns from undercover USFWS agents posing as wildlife traffickers. After purchasing the horns at a storage facility in the Bronx, GUAN asked the undercover agents to drive him and an accomplice, who was acting as his interpreter, to a nearby express mail store where GUAN mailed the horns to an address in Point Roberts, Washington, less than a mile from the Canadian border and 17 miles from GUAN’s antiques business. In completing the shipping labels, GUAN claimed that the box of black rhino horns contained “handicrafts” worth just $200, even though GUAN had just paid $45,000 to the undercover agents for them. Furthermore, in doing so, GUAN indicated that he would arrange to have the rhinoceros horns driven across the border, and that he had done so many times before.
At the time of GUAN’s arrest, wildlife enforcement officers with Environment Canada executed a search warrant at GUAN’s antique business in Canada.
This case is the part of “Operation Crash,” a U.S. Fish & Wildlife and Justice Department crackdown on illegal trafficking in rhinoceros horns. Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
GUAN, 39, faces up to five years in prison for the conspiracy and wildlife charges and up to ten years in prison for the crime of smuggling. He could be fined up to $250,000 per count or up to twice the gross gain from the criminal conduct. 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.
Mr. Bharara praised the outstanding efforts of USFWS in the investigation, which he noted is ongoing. He also thanked Environment Canada’s Wildlife Enforcement Directorate and Justice Canada for their assistance with this case.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Janis M. Echenberg and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Xiao Ju Guan Indictment
Canadian Antique Dealer Charged with Trafficking WildlifeRead the Press Release
Canadian antiques dealer Xiao Ju Guan, aka Tony Guan, 39, was indicted by a federal grand jury in Manhattan today for conspiring to smuggle wildlife, including rhinoceros horn, elephant ivory and coralannounced Acting Assistant Attorney General Sam Hirsch for the Environment and Natural Resources Division of the Department of Justice, U.S. Attorney Preet Bharara for the Southern District of New York and Director Dan Ashe of the U.S. Fish & Wildlife Service (FWS).
Guan, the president and owner of an antiques business in Richmond, British Columbia, was arrested on March 29, 2014, after flying from Vancouver to New York and purchasing two endangered black rhinoceros horns from undercover special agents with the U.S. Fish & Wildlife Service at a storage facility in the Bronx. After purchasing the horns in a storage pod, Guan had the undercover agents drive him and a female accomplice acting as his interpreter to a nearby express mail store where he mailed the horns to an address in Point Roberts, Washington, less than a mile from the Canadian border and 17 miles from his business. Guan labeled the box of black rhino horns as containing “handicrafts” worth $200, even though he had just paid $45,000 for them. Guan indicated that he had people who could drive the horns across the border and that he had done so many times before.
Guan and his co-conspirators allegedly smuggled more than $500,000 of rhino horns and sculptures made from elephant ivory and coral from various U.S. auction houses to Canada by the same method or by having packages mailed directly to Canada with false paperwork and without the required declaration or permits. One part of the criminal scheme was to falsely describe the wildlife in order to conceal Guan’s wildlife smuggling. In the case of a rhino horn purchased in Florida, the Customs paperwork claimed it was a “Wooden Horn” worth $200.
At the same time that Guan was being arrested in New York, wildlife enforcement officers with Environment Canada executed a search warrant at Guan’s antique business in Canada. Environment Canada and Justice Canada are working cooperatively with U.S. investigators and prosecutors. The Guan case is part of “Operation Crash,” a U.S. Fish & Wildlife and Justice Department crackdown on illegal trafficking in rhinoceros horns.
“Illegal wildlife trafficking is a multibillion-dollar business that must be stopped,” said Acting Assistant Attorney General Hirsch. “The Justice Department is working vigorously to uphold the laws designed to protect rhinos and elephants and other threatened species from extinction and is working alongside our international partners to bring black-market wildlife traders to justice. We are also very grateful here for the assistance from Canadian authorities.”
“ There is an ever-expanding black market for objects made from endangered species that fuels the devastating and senseless slaughter of noble animals,” said U.S. Attorney Bharara. “The charges levied today are designed to deal a heavy blow to those that are deliberately profiting from the trade in rare and endangered species. ”
“As this case illustrates, the United States plays a key role in the illegal wildlife trade – often as the source of, or transit country for, poached and smuggled wildlife products headed elsewhere in the world,” said Director Ashe. “This makes coordination vital with our international partners as we work together to halt the slaughter of rhinos, elephants and many other imperiled species. We have a long history of collaboration with Environment Canada on wildlife trafficking and other issues, and we appreciate the invaluable assistance they’ve provided in this case.”
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under U.S. and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
Operation Crash is a continuing investigation by the Department of the Interior’s Fish and Wildlife Service (FWS), in coordination with the Department of Justice. A “crash” is the term for a herd of rhinoceros. Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns. The Guan case was investigated by FWS, the U.S. Attorney’s Office Complex Frauds Unit and the Justice Department’s Environmental Crimes Section with assistance from Environment Canada’s Wildlife Enforcement Directorate. Assistant U.S. Attorney Janis M. Echenberg and Senior Counsel Richard A. Udell of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.
An indictment is an allegation based upon a finding of probable cause. A defendant is presumed innocent until convicted. If convicted, Guan faces up to five years in prison for the conspiracy and wildlife charges and up to ten years in prison for the crime of smuggling. Guan could be fined up to $200,000 per count or up to twice the gross gain from the criminal conduct.Related Materials:
Indictment
Buffalo Man Pleads Guilty to Tax ChargesRead the Press Release
BUFFALO, N.Y.–U.S. Attorney William J. Hochul, Jr. announced today that Maung No, 25, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to preparation of false tax returns. The charge carries a maximum penalty of six years in prison, a fine of $100,000, or both.
Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that the defendant was employed as a tax return preparer for VPS Income Tax in 2011 and BTC Income Tax in 2012. The fee charged for an income tax preparation was 10% of a client’s refund amount plus bank fees.In 2012, No prepared a 2011 tax year return for clients and claimed an Education Credit of $1,358, an American Opportunity Credit of $2,000 and a Federal Fuel Tax Credit of $183 without their knowledge. The defendant knew that the credits were false and that the clients were not entitled to claim such credits nor had the clients provided any such claim for the credits. As a result of No’s conduct, the clients received a larger federal income tax refund than they were entitled which resulted in a larger fee for BTC Income Tax. The total loss to the Internal Revenue Service was $3,543.
Between 2011 and 2012, No filed similar returns for 1,138 clients which resulted in losses to the IRS totaling $2,332,122.
The plea is the culmination of an investigation by Internal Revenue Service Criminal Investigation Division, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.
Sentencing is scheduled for November 4, 2014 at 12:30 p.m. before Judge Arcara.Brooklyn Man Sentenced for Theft of Social Security FundsRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Antonio Rodriguez Soto (51, Brooklyn, NY) to 10 months in federal prison for theft of government property. The Court also ordered Soto to pay restitution in the amount of $89,143.50 to the Social Security Administration (SSA). Soto pleaded guilty to the charge on April 29, 2014.
According to court documents, Soto began receiving Social Security Disability Insurance payments in 1993. In 2012, he signed a Social Security form stating that he had last worked in 2000. An investigation by the Social Security Administration Office of Inspector General revealed that Soto was employed as a maintenance worker at a hotel in Kissimmee from 2005 through 2010, and that he did not have any apparent disability. Due to Soto’s fraudulent activities, the SSA lost $89,143.50. Specifically, Soto’s unreported work activity caused him to be overpaid $57,541.50. In addition, those earnings disqualified his children from receiving benefits. His son was overpaid $26,252.00 and his daughter was overpaid $5,350.00.
This case was investigated by Social Security Administration Office of Inspector General. It is being prosecuted by Assistant United States Attorney David Haas.
Bergen County, N.J., Couple Sentenced to Prison for Defrauding Mortgage Lenders for over $3 MillionRead the Press Release
NEWARK, N.J. - A husband and wife from Bergen County, New Jersey, were both sentenced today to prison for lying about their employment, income, and other financial information in order to fraudulently obtain millions in mortgages, U.S. Attorney Paul J. Fishman announced.
Linda Yarleque, 44, was sentenced to 24 months in prison and her husband, Fabio Moreno Vargas, 47, was sentenced to 18 months in prison. They were previously convicted by a federal jury of one count each of bank fraud and conspiracy to commit wire fraud. Yarleque and Moreno, of Westwood, New Jersey, were convicted in November 2013 following a one-week trial before U.S. District Judge William H. Walls, who imposed the sentences today in Newark federal court.
According to documents filed in this case and the evidence at trial: Yarleque and Moreno obtained 10 fraudulent loans over three years. They falsified their employment and income, failed to disclose their debts and other properties that they owned, and lied about where they lived. They fraudulently obtained a total of $3.4 million in mortgages and personally pocketed approximately $269,000 through “cash out” refinancings that they directed to their own bank accounts. Then they spent that money on vacations, cars, and to buy more properties.
The defendants made up a phony business where Moreno was supposedly employed (My Limousine). They then obtained a phone line in the name of My Limousine and had it forwarded to their personal cell phones. When mortgage lenders called to verify Moreno’s employment, the defendants lied, posing as fictitious employees, using names such as “Janet Alvarez” and “Casandra Sterling.”
In addition to the prison term, Judge Walls sentenced Yarleque and Moreno to serve three years of supervised release and ordered them to pay restitution of $716,353 and forfeit $262,198.U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney J. Jamari Buxton of the general crimes unit and Rachael A. Honig, counsel to the U.S. Attorney.14-266
Defense counsel: Yarleque: Peter Willis Esq., of Jersey City, New Jersey
Moreno: Chester Keller Esq. and Carol Gillen Esq., Assistant Federal Public Defenders, Newark