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Friday 6 June 2014
Campaign Worker Pleads Guilty to Buying Votes<br /> in a Donna, Texas School Board ElectionRead the Press Release
A campaign worker pleaded guilty today for paying voters to vote in the November 2012 school board election in Donna, Texas, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Guadalupe Escamilla, 72, of Weslaco, Texas, pleaded guilty to one count of vote-buying before Chief U.S. District Judge Ricardo Hinojosa in the Southern District of Texas, McAllen Division. Sentencing is scheduled for Aug. 29, 2014.
According to a factual statement read during the plea hearing, a general election was held on Nov. 6, 2012, in Donna for the presidential election, as well as various state, county and local offices, including the Donna School Board. Escamilla assisted in the campaign to elect candidates to the Donna School Board. In the course of that work, Escamilla knowingly and willfully paid and offered to pay voters for voting in this election. In addition, she indicated during the plea hearing that at least two candidates gave her money to pay to voters for voting in the election.
Two other campaign workers, Rebecca Gonzalez, 44, and Diana Balderas Castaneda, 48, of Donna, Texas, have pleaded guilty to the same charge. Gonzalez is scheduled to be sentenced on Sept. 16, 2014 and Castaneda is scheduled to be sentenced on July 25, 2014.
This case was investigated by the FBI. The case is being prosecuted by Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas.Buffalo Woman Convicted of Conspiracy to Distribute Cocaine BaseRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Kayla Renee Combs, 24, of Buffalo NY pleaded guilty before United States District Court Judge Richard J. Arcara to conspiracy to possess with intent to distribute and to distribute cocaine base. The charge carries a maximum term of imprisonment of 40 years, a $5,000,000 fine, or both.
Assistant U.S. Attorney Mary C. Baumgarten stated that the charges stem from an investigation into the trafficking of cocaine base and cocaine from the Cleveland, Ohio area into Western New York, and the distribution of those drugs in North Tonawanda, Niagara Falls, Lockport, and Buffalo. The charges in the indictment against co-defendants Nathaniel Clark, 29, of Niagara Falls, NY, Raysean Clark, 27, of Buffalo, NY, and Tommy Eugene Clark, 26, of Niagara Falls, NY, remain pending. Combs is the first defendant convicted in this case.
The plea is the culmination of an investigation on the part of Task Force Agents and Special Agents of the Drug Enforcement Administration, under the direction of Brian R. Crowell, in conjunction with the Niagara County Sheriff's Department and Niagara County Drug Task Force, under the direction of Sheriff James Voutour, and the North Tonawanda Police Department, under the direction of Chief William Hall.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Sentencing is scheduled before Judge Arcara on September 15, 2014 at 1:00 p.m.Buckhead Man Convicted for Sex Trafficking of A MinorRead the Press Release
ATLANTA - Steven E. Thompson has been convicted by a federal jury of sex trafficking of a juvenile, conspiring to do the same, and transportation for prostitution.
“This defendant maintained his lifestyle on money made through prostitution,” said United States Attorney Sally Quillian Yates. “Thompson had no problem with sexually exploiting women, even going as far as forcing a homeless 17-year old to have sex with strange men for a place to sleep. Sex trafficking is despicable. Our office will use every asset available to eradicate this practice from our community.”
‘"The sale of under-aged girls for sex is a plague on our society and my agents will not rest while we know there are more victims out there being exploited by these 'pimps' who should be more accurately known as child rapists,” said Special Agent in Charge Brock D. Nicholson, head of Homeland Security Investigations in Atlanta. “I am grateful to the GBI for joining us in this investigation and for their larger commitment to target the criminals engaging in sex trafficking in Georgia.”According to United States Attorney Yates, the charges and other information presented in court: Thompson and his co-defendant, Tierra Waters, who pled guilty to conspiracy to sex-traffic a minor, lived in the Grandview Condominiums in the Buckhead area of Atlanta, Ga. Thompson advertised his prostitution business on Backpage.com, posting advertisements inviting men to contact women for sex. The men then came to the Buckhead condo for sex or met the women at residences or hotels around Atlanta.
Between April and June of 2011, Thompson advertised a 17-year old refugee from West Africa for prostitution, falsely listing her age as 19 and 20. Because she came to the United States without her parents, the teen was at the mercy of various relatives and friends for shelter and support and went through frequent periods of homelessness. In February of 2011, the teen was declared a deprived child by the Clayton County, Ga., Juvenile Court and was placed in a temporary shelter. Her grandmother took custody of her, but soon left the country, leaving the teen to fend for herself. In April 2011, Thompson and Waters offered the homeless teenager a couch to sleep on while she waited to get into Job Corps.
After a few weeks, they told her that she would have to have sex with men for money or get out of the condo. For the next six weeks, the teen was forced to have sex with three to five men each night at the condo and other places around Atlanta, Ga. The teen was arrested in an undercover operation at the Intercontinental Hotel in Atlanta on June 11, 2011.
Men who think they are buying sex from a consenting adult may actually be contributing to sex trafficking of minors unwittingly. A customer testified at trial that he had found the minor on Backpage.com, not realizing she was underage. This witness also testified regarding threatening text messages he received from Thompson advising him of the teen's age and attempting to extort money from him.
In addition to the teen, Thompson, 43, who went by the name ‘Silk,’ also posted ads on Backpage.com for A.M., a prostitute from Washington, and F.F., a prostitute from Alabama. Thompson met A.M. on the Internet and invited her to come to Atlanta to work as a prostitute. In March 2011, A.M. flew from Seattle, Wash., to Atlanta. She moved in with Thompson and Waters and continued to engage in prostitution from the condo. Likewise, Thompson found F.F. on Backpage.com. Thompson told F.F. that she could make more money being a prostitute in Atlanta than she could in Alabama and convinced her to come to Atlanta in August 2011.
This case was investigated by Special Agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Georgia Bureau of Investigation.
Assistant United States Attorneys Susan Coppedge and Leslie J. Abrams prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Brookline Man Sentenced to 3 Years in Prison for Conspiring to Traffic Controlled ChemicalRead the Press Release
PITTSBURGH - A Pittsburgh man has been sentenced in federal court to 37 months imprisonment followed by five years supervised release on his conviction of violating federal narcotics laws, United States Attorney David J. Hickton announced today.
United States District Judge Mark R. Hornak imposed the sentence on Patrick Taylor, 34.
According to information presented to the court, on or about Nov. 12, 2011, and continuing thereafter to on or about March 6, 2013, in the Western District of Pennsylvania and elsewhere, Taylor conspired with others to distribute and possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of methylone, a Schedule I controlled substance. Specifically, Taylor contacted a source of supply in China via the Internet, and arranged for the importation of kilogram quantities of methylone into the United States for further distribution.
Methylone is a psychoactive chemical that is structurally and pharmacologically similar to the Schedule I substance MDMA. On April 12, 2013, the Administrator of the DEA issued a Final Rule, which scheduled methylone as a Schedule I controlled substance. Schedule I status is reserved for those substances with a high potential for abuse, no currently accepted use for treatment in the United States, and a lack of accepted safety for use of the drug under medical supervision.
Assistant United States Attorney Katherine A. King prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Homeland Security - Homeland Security Investigations, the United States Postal Service, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Patrick Taylor.
Brevard County Man Convicted at Trial for Attempting to Entice A MinorRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III, announces that a federal jury found Matthew Steven Howard (26) guilty of attempting to persuade, induce and entice a person he believed to be 14 years of age to engage in illicit sexual conduct. Howard is facing a minimum sentence of 10 years, up to life in prison. A sentencing hearing is scheduled for September 9, 2014. He was remanded to the custody of the United States Marshals Service until his sentence.
Howard was indicted on February 12, 2014.
According to the testimony and evidence presented at trial, on December 31, 2013, a Federal Bureau of Investigation (FBI) Task Force Officer (TFO) noticed a sexually explicit advertisement on Craigslist that made reference to a minor female. During the time span charged in the Indictment, Howard engaged in communications, via the Internet, with the undercover FBI TFO, who was posing as a 14-year-old girl. During the online communications, Howard told the “minor” that he wanted to engage her in sexual conduct.
On January 3, 2014, Howard traveled from his residence in Merritt Island, Florida, to Rockledge, Florida, where he intended to meet the “minor” for the purpose of engaging in illicit sexual conduct, at which time he was arrested. During an interview with law enforcement, Howard admitted that he attempted to entice a minor, via the Internet, for the purposes of engaging in sexual activity. Howard had been previously charged with lewd and lascivious battery in the state of Florida.
This case was investigated by the Federal Bureau of Investigation and the Brevard County Sheriff’s Office, with the assistance from the U.S. Department of Homeland Security, Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Ilianys Rivera Miranda and Bruce Ambrose.
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 (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.
Bloods Street Gang Investigation Culminates in Life SentenceRead the Press Release
Contact Person: J.D. Rowell (803) 929-3000
Columbia, South Carolina ----- United States Attorney Bill Nettles stated today that Calvin James Hall age 43 of Irmo, South Carolina was sentenced today in federal court in Columbia, South Carolina to life in prison without the possibility of parole. On July 25, 2013, a federal jury convicted Hall of being a member or associate of the Bloods Street gang as part of a conspiracy to commit racketeering (RICO Conspiracy). As to the racketeering conspiracy charge the jury unanimously found that Hall agreed that the racketeering activity that would be or was committed included: (1) Distribution, Possession with Intent to Distribute, and Trafficking in controlled substances, in violation of SC Code Sections 44-53-370 and 44-53-375; (2) Distribution, Receipt, Concealment, Buying, Selling, and Otherwise Dealing in Controlled Substances, including Cocaine, Cocaine Base, Marijuana, and Other Controlled Substances, in violation of 21 U.S.C. §§ 841 and 846; (3) Recruiting, Enticing, or Transporting a Minor in Interstate Commerce or to Benefit Financially from Participation in a Venture which Recruits, Entices, or Transports Minors to Engage in Commercial Sex Acts, in violation of 18 U.S.C. § 1591; (4) Obstruction of Justice; and (5) Witness Tampering. In addition to the above RICO conspiracy conviction, Hall was also convicted of six related federal violations involving conspiracy to traffic crack cocaine, use of a telephone in furtherance of drug trafficking, attempted armed robbery of a drug dealer, and related charges. United States District Judge Joseph F. Anderson Jr. of Columbia sentenced to Hall to a statutory mandatory life sentence, without the possibility of parole. Hall faced this sentence in part because of his two prior felony drug convictions.
Hall was one of 39 members and associates of the Bloods street gang that were indicted and arrested in the summer and fall of 2012. The investigation was the second wave of an FBI investigation that began in 2007 of the violent street gang. As of the date of this release, all 39 defendants charged in the case have been convicted and all received sentences that included periods of incarceration in the Federal Bureau of Prisons.
During Calvin Hall’s trial, evidence was presented that the Bloods street gang was formed in 1998, when James Powell a/k/a Munchie, came to Columbia, South Carolina, from New York because he was on the run from the police for a shooting he committed. Powell began initiating young men in Columbia in 1998 or 1999 into the Gangsta Killa Blood (GKB) set of the Bloods and that set was operating in Columbia in 2011 when Hall and his coconspirators were arrested and charged. Evidence at the trial demonstrated that the Bloods were involved in coordinated armed robberies of drug dealers, the posting of young women on the internet for prostitution, crack cocaine trafficking, financial crimes, and other criminal activity.
Evidence during Hall’s trial established that on May 23, 2011, Hall, along with two codefendants and Blood Gang members Nicholas Jason Wright and Stewart Stroman, conspired to commit an armed robbery of a marijuana dealer in or around Lexington County, South Carolina. Witnesses testified that after Stroman put Wright in contact with Hall, they along with three other conspirators went to the marijuana dealers house to rob him. When Hall breached the front door armed with a pistol, he was shot in the stomach by a resident of the house.
Despite being shot in May of 2011, evidence at trial demonstrated that Hall continued to associate with the Bloods and in June of 2012, he was the beneficiary of a drug robbery committed by Wright and other Bloods gang members in Greenville, South Carolina. Witnesses testified that Stroman coordinated a robbery in Greenville in which Wright, Kenneth Timmons and several other Bloods shot a drug dealer in the gut who refused to tell them where his cocaine was. After the dealer was shot, the conspirators came back to Columbia, where Calvin Hall purchased a large quantity of the cocaine from his conspirators. Witnesses testified that Hall provided one of the guns that was used in the Greenville robbery.
The investigation resulted in a number of Bloods gang leaders being sentenced to federal prison including Titus Will Bowman, a/k/a “T.I”; Torrean Antwan Sims, a/k/a Slim; and David Andrea Jenkins, a/k/a “Arma G.” Bowman, a high level leader and shooter, was sentenced to 220 months incarceration by Judge Anderson on December 16, 2013. Other notable sentences include Andre Cummings (108 months incarceration), Craig Xavier Alston (177 months incarceration), Nicholas Wright (180 months incarceration); Stewart Stroman (96 months incarceration); Nathaniel Farmer (151 months incarceration); Jarius Jones (108 months incarceration); Antwain Brisbon (200 months incarceration); Odel “Teazy” Martin (240 months incarceration); Joshua “Metro” Kitt (168 months incarceration); Hassaan R. Brown (115 months incarceration); Kenneth “Keno” Timmons (190 months incarceration) and Alex Russell Anderson (151 months incarceration).
U.S. Attorney Bill Nettles said, "Organized violent criminals who exploit our communities to fund their criminal enterprises are a focus of our Violent Crime and Narcotics Division. The work of the prosecutors, agents and good citizens that made this case is remarkable and will have a tangible impact on the quality of life in our neighborhoods."
"Dismantling violent gangs is a continuing priority for the FBI. This verdict is the direct result of joint efforts with our federal, state, and local law enforcement partners, and we will continue to work diligently with our colleagues to investigate and eradicate gangs and the violence they perpetrate. Together we are committed to restoring safety and security to our communities", said David A. Thomas, Special Agent in Charge, FBI.
This case was investigated by the Columbia Violent Gangs Task Force (CVGTF), led by agents with the Federal Bureau of Investigation. The CVGTF is part of the FBI’s Safe Streets Task Force initiative. The CVGTF is an investigative and enforcement partnership between the FBI, Richland County Sheriff’s Department (RCSD), Columbia Police Department (CPD), South Carolina Law Enforcement The case was prosecuted by AUSA J.D. Rowell and AUSA William Witherspoon, out of the United States Attorney’s Office in Columbia, South Carolina.Associate Attorney General Tony West to Visit AlaskaRead the Press Release
Associate Attorney General Tony West will visit Alaska next week to discuss the Department of Justice’s efforts to protect civil rights and strengthen public safety in American Indian and Alaska Native communities. He will deliver remarks at the National Congress of American Indians Mid-Year Conference in Anchorage, Alaska, on MONDAY, JUNE 9, 2014, at 10:20 a.m. AKDT .
Associate Attorney General West will also deliver opening remarks at the fourth and final publ ic h earing of the Advisory Committee of the Attorney General’s Task Force on A merican Ind ian and Ala ska Native Child ren Exposed to Vio lence in Anchorage on WEDNESDAY, JUNE 11, 2014, at 1:00 p.m. AKDT . For more infor mation on the Attorney General’s Task Force and the Adv isory Co m mittee, plea se visi t: the department website .
Monday, June 9, 2014
10:20 a.m. AKDT/ Associate Attorney General Tony West will deliver remarks at the
2:20 p.m. EDT National Congress of American Indians Mid-Year Conference.
Dena'ina Civic and Convention Center
600 West Seventh Avenue
Anchorage, Alaska
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media inquiries regarding logistics should be directed to Sarah Beccio at 410-371-5551 or via email
Wednesday, June 11, 2014
1:00 p.m. AKDT/ Associate Attorney General Tony West will deliver remarks at the
5:00 p.m. EDT Opening of the Task Force Hearing on American Indian and Alaska Native Children’s Exposure to Violence
Sheraton Hotel
Howard Rock Ballroom
401 East Sixth Avenue
Anchorage, Alaska
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media inquiries regarding logistics should be directed to Wyn Hornbuckle at 202-514-2007 or via email
Akron Man Sentenced on Charges of Child PornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Michael A. Taschetta, 55, of Akron, New York, who was convicted of a felony charge of possession of child pornography, was sentenced to 60 months of incarceration with 5 years of supervised release by District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that the defendant downloaded images of child pornography from the internet, some of which included graphic depictions of children under 12 years of age engaged in sexual conduct. Upon execution of a search warrant, the defendant admitted to agents that he downloaded child pornography onto his computer utilizing a peer-to-peer software application.
The conviction was the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James Spero.
3rd Defendant Pleads Guilty in Hobbs Act Robbery ConspiracyRead the Press Release
PROVIDENCE, R.I. – Gennaro Miele, 61, of Niantic, CT., pleaded guilty in U.S. District Court in Providence today to conspiracy to commit Hobbs Act robbery, in connection with a home invasion and robbery in March 2010 of a 78-year-old associate of the Gambino crime family, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Information regarding the home invasion in Stamford, CT., came to law enforcement’s attention during an unrelated drug trafficking investigation in Rhode Island.
According to court documents and information presented to the court, Miele was solicited into the conspiracy by an individual the investigation shows had been loaned $100,000 by the victim, and that the home invasion was planned in a growing dispute over the loansharking debt that had grown to be in excess of $300,000. The victim of the home invasion was well known to Stamford Police as being an associate of the Gambino crime family.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Miele admitted that he also participated in the conspiracy with two other individuals, Napoleon Andrade, 33, of Central Falls, R.I., and Stephen L. Conti, 43, of Swansea, Mass. He acknowledged that the conspiracy and plans to execute the home invasion and robbery were formulated during meetings and telephone conversations that occurred in Rhode Island, Massachusetts and Connecticut.
According to the victim, the attackers, who gained entrance to his home on March 2, 2010, purporting to be deliveryman, bound and blindfolded him and stole more than $200,000 worth of jewelry, more than $16,000 in cash and a double-barreled shotgun. Law enforcement’s investigation determined that some of the items stolen were sold to a pawn shop in Rhode Island later the same day.
According to information presented to the court, Napoleon Andrade was the target of an unrelated, long-term federal, state and local law enforcement investigation into his suspected drug trafficking activities. During a March 8, 2010, conversation surreptitiously recorded by law enforcement, Andrade discussed his participation in home invasions in Connecticut and New York. An investigation by ATF agents determined that among the home invasions discussed was the incident in Stamford, CT.In August 2011, in matters unrelated to the home invasion, Andrade admitted to the facts that were the basis for charges contained in three federal indictments and three informations that were brought as the result of several ATF led investigations, and several joint federal, state and local investigations. Some of the investigations included “sting operations” and the use of electronic surveillance. Andrade received a10-year federal prison sentence for drug trafficking, money laundering, theft of government property and federal firearm violations. His sentenced was enhanced by 63 months for his role in the March 2010 home invasion. He pleaded guilty in March 2014 to conspiracy to commit a Hobbs Act robbery.
Stephen L. Conti pleaded guilty on September 26, 2013, to conspiracy to commit a Hobbs Act robbery. He is scheduled to be sentenced on September 12, 2014, by U.S. District Court Judge John J. McConnell, Jr.
Gennaro Miele is scheduled to be sentenced by on August 27, 2014.
At sentencing, Miele and Conti face statutory penalties of up to 20 years in prison and a fine of up to $250,000.
The cases against Miele, Conti and Andrade are being prosecuted in the District of Rhode Island by Assistant U.S. Attorney Gerard B. Sullivan.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]
Thursday 5 June 2014
Zenbio Bookeeper Pleads Guilty to Fraud Related to the Sale of Synthetic DrugsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Crystal Hope Henry, a resident of Pensacola, Florida, entered a guilty plea today before Chief United States District Court Judge William Steele to one count of conspiracy to defraud the United States by interfering with the lawful governmental regulatory and enforcement functions of the FDA and DEA.
Henry and her co-conspirators manufactured and distributed at least 20 tons of products containing the chemical compound XLR11. They referred to the products as potpourri and marketed them under names such as “Bizarro,” “Sonic Zero,” “Neutronium,” and “Orgazmo.” The products were misbranded smokable synthetic cannabinoids which were distributed for human consumption. The products were packaged and sold without the labeling required by law and necessary to protect the user such as: the place of business of the manufacturer, packer, or distributor; an accurate statement of the contents; adequate directions for use; warnings where its use may be dangerous to health; or warning against unsafe dosage. The products were labeled, “Not for Human Consumption.”
The company Henry worked for operated a call center in Robertsdale, Alabama and from December 1, 2012 through April 30, 2013 took in over $29, 656,917.98.
“The use of synthetic or designer drugs has a devastating impact on our communities. Although synthetic cannabinoids are many times marketed as ‘legal’ marijuana, they are not only illegal are extremely harmful,” U.S. Attorney Brown said. “We are committed to working with our law enforcement partners to shut down the manufacturers and distributors who reap profits without regard for the law or public safety.”
Henry faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. Monies seized from her in June of 20913 have also been administratively forfeited.
The matter was investigated by the Mobile Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); and the Mobile Field Office of the Internal Revenue Service’s Criminal Investigations; with assistance from the Food and Drug Administration Office of Chief Counsel; the San Francisco and Chicago Field Divisions of the U.S. Drug Enforcement Administration (DEA); the Oakland, California Field Office of the Internal Revenue Service’s Criminal Investigation; and the San Francisco Field Office of HSI, and was prosecuted by AUSA Deborah Griffin.
Two Panama City Men Sentenced to Federal Prison for Tax Fraud, Wire Fraud, and Identity TheftRead the Press Release
PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced that the Honorable Richard Smoak sentenced Versiah M. Taylor, 33, of Panama City, Florida, to 264 months in federal prison and Tracy L. Collier, 48, of Panama City, Florida, to 164 months in federal prison for filing fraudulent tax returns using the personal identifying information (PII) of other individuals.
Between September 9, 2011, and August 15, 2012, the defendants prepared and filed fraudulent tax returns seeking more than $500,000 in refunds. The defendants used the PII of inmates of the Florida Department of Corrections, Bay County residents, and others to file fraudulent income tax returns. Collier, who was incarcerated during the conspiracy, provided the personal information of inmates by disguising the social security numbers and dates of birth as legal case citations and mailed them to Taylor. Taylor, operating out of a small office that he rented in the Steele Boys Bail Bond’s Plaza in Panama City, orchestrated the filing of multiple tax returns creating false employment information and using the PII of other individuals. These returns each claimed fraudulent refunds between $3,000 and $9,530 and were to be deposited onto prepaid debit cards, which were then mailed to various locations throughout Bay County, Florida.
Taylor was also sentenced to serve a 3-year term of supervised release and ordered to pay $107,422 in restitution and a $4,500 special monetary assessment.
Collier was also sentenced to serve a 3-year term of supervised release and ordered to pay $107,422 in restitution and a $2,200 special monetary assessment.
This conviction results from an investigation by agents of the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Katy Risinger.
Two North Texas Men Plead Guilty to Role in Stolen Refund Identity Fraud ConspiracyRead the Press Release
DALLAS — Two north Texas men have pleaded guilty in federal court in Dallas to their respective roles in a stolen refund identity fraud conspiracy, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Reminico Zhangazha appeared before U.S Magistrate Judge David L. Horan on Tuesday and pleaded guilty to one count of theft of public funds. Last month, co-defendant Tonderai Sakupwanya pleaded guilty to the same offense. Each faces a maximum statutory penalty of 10 years in federal prison and a $250,000 fine. Restitution could also be ordered. Sakupwanya is scheduled to be sentenced on September 8, 2014, by U.S. District Judge David C. Godbey. A sentencing date has not yet been set for Zhangazha. Both are in federal custody.
The plea agreements with the government also note that the defendants will forfeit the following property seized by law enforcement in May 2012 during the investigation of this case: $10,613 cash seized from Zhangazha’s vehicle; $93,513 cash from Villa Piana Luxury Apartments on Noel Road in Dallas; and $4,500 from a residence on Spring Mountain in Plano, Texas.
According to the factual resumes filed in the case, Zhangazha and Sakupwanya engaged in a scheme to defraud the Internal Revenue Service (IRS) by obtaining stolen tax refunds that were generated by e-filing false and fraudulent income tax returns. They rented private mailboxes in the names of aliases by using forged United Kingdom passports. They then established bank accounts using the alias names and mailing addresses acquired at the private mailboxes. During the course of the scheme, Zhangazha used the aliases of “Martin V. Masters” and “Roy Daniel Black.” Sakupwanya used the aliases of “Webster G. Rice,” “Floyd Robbins,” and “Floyd Roberts,” during the scheme, according to the factual resume.
According to the factual resumes, the Forms 1040 directed the IRS to electronically deposit the refunds into bank accounts the defendants established. Alternatively, the Forms 1040 directed refunds to be issued by a treasury check and mailed to an address under the control of the defendants. The income tax returns also directed refunds to accounts established at a third-party financial services company, such as EPS Financial, that would enable them to issue a check containing the tax refund. These third party checks and the treasury checks were deposited into bank accounts the defendants established. After the checks were deposited, or the tax refunds had been electronically deposited, the defendants would withdraw the funds for their own use and benefit. The factual resumes further note that the cash, mentioned above, which was seized from the defendants during the investigation, was obtained by them as a result of their scheme.
The case was investigated by IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Chris Stokes is in charge of the prosecution.
Two Miami Residents Plead Guilty to Money Laundering Charges Involving Stolen Identity Tax RefundsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announce that Steven Toussaint, 33, and Emmanuel Marvin Alphonse, 28, both of Miami, each pled guilty to one count of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i). Sentencing is scheduled for August 14, 2014 at 2:30 p.m. At sentencing, the defendants each face up to 20 years in prison.
According to court documents, from January 1, 2011 through July 29, 2011, the defendants engaged in money laundering activities involving the cashing of money orders funded with fraudulent, stolen identity tax refunds. Both Toussaint and Alphonse had their own check cashing accounts at the Cash-A-Check check-cashing store. Steven Toussaint cashed 985 money orders, totaling $490,401, using his own Cash-A-Check account. Emmanuel Marvin Alphonse cashed 581 money orders, totaling $286,995, using his own Cash-A-Check account. The defendants knew that the money orders were funded by unlawful activity, and knowingly conducted the transactions on behalf of third-parties for the purpose of concealing and disguising the nature and source of the unlawful proceeds in exchange for a portion of the funds involved in each transaction.
Mr. Ferrer commended the investigative efforts of IRS-CI and USPIS. The case is being prosecuted by Assistant U.S. Attorney Frank 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.
Two Men Plead Guilty in Separate Cases for Crimes Involving the Sexual Victimization of ChildrenRead the Press Release
U.S. Attorney Kenneth Polite announced that yesterday, two men pled guilty before U.S. District Judge Sarah S. Vance to charges involving the sexual victimization of children.
AUNG GAW, a/k/a Michael Gaw, age 26, of Fremont, California, pled guilty to one count of conspiracy to produce child pornography. According to court documents, beginning in December 2012, and continuing until May 2013, GAW conspired with Jonathan Johnson to produce sexually explicit videos of young boys. On November 5, 2013, federal agents executed a federal search warrant at GAW’s Fremont, California residence. GAW has been in custody since his arrest that day.
GAW faces a sentence of 15 to 30 years’ imprisonment, 5 years to life of supervised release, and a maximum fine of $250,000. In addition, he will have to register as a sex offender. Sentencing is scheduled for September 3, 2014.
Additionally, KIRK P. WEBER, age 54, of Reserve, Louisiana, pled guilty to one count of Distribution of Child Pornography. According to court documents, from May 14, 2013, to October 24, 2013, WEBER knowingly distributed images depicting the sexual victimization of minors through the use of a popular social media site. WEBER has been in federal custody since his February 7, 2014 arrest.
WEBER faces a sentence of 5 to 20 years’ imprisonment, 5 years to life of supervised release, and a maximum fine of $250,000. In addition, he will have to register as a sex offender. Sentencing is scheduled for September 3, 2014.
U.S. Attorney Polite stated, “These convictions, which carry significant mandatory minimum sentences, continue to demonstrate our Office’s commitment to protecting our young children from sexual exploitation.”
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The GAW matter is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations and the U.S. Postal Inspection Service. The WEBER matter is being investigated by the U.S. Department of Homeland Security-Homeland Security Investigations. The prosecution of both cases is being handled by Fraud Section Chief and Project Safe Childhood Coordinator, Assistant U. S. Attorney Brian M. Klebba.
(Download Gaw Factual Basis )
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Transporting and Harboring Aliens Lands Four in PrisonRead the Press Release
Nine Aliens Killed During Transport
McALLEN, Texas – Four defendants, who conspired to transport and harbor illegal aliens resulting in multiple deaths, have been sentenced to prison, announced United States Attorney Kenneth Magidson. Carmelo Diaz-Gopar, 26, and Jose Vega-Zapata, 37, both of Mexico, and Gloria Solis, 26, and Luis Julian Vargas, 21, both of Mission, all previously pleaded guilty to one count of conspiring to transport and harbor illegal aliens within the U.S. resulting in the death of at least one person.
Today, Chief U.S. District Judge Ricardo H. Hinojosa handed Vega-Zapata a sentence of 132 months in federal prison, while Diaz-Gopar, Solis and Vargas receive respective sentences of 121, 42 and 100 months imprisonment. In handing down the sentences, the court noted that transporting and harboring aliens is a horrendous profession motivated by greed and that this offense tragically resulted in the death of nine individuals who had come to this country in search of work. Vargas and Solis must also serve two years of supervised release following completion of their prison terms. Both Diaz-Gopar and Vega-Zapata are illegal aliens and are expected to face deportation proceedings following release from prison.
According to court records, on April 10, 2012, Border Patrol (BP) agents attempted to conduct a traffic stop on a mini-van suspected of transporting undocumented aliens. The mini-van initially stopped on the side of the road in Palmview, at which time Diaz-Gopar exited from the van and ran away in an attempt to elude agents. He was apprehended shortly thereafter.
The driver of the van, a juvenile, then drove away at a high rate of speed and was involved in a single car accident just a short distance from the location of the original stop. A total of 16 undocumented aliens were being transported in the mini-van at the time of the accident. Nine were killed and the others were taken to local hospitals to seek medical treatment. Homeland Security Investigations (HSI), along with several other law enforcement agencies responded to the scene of the accident.
After further investigation, it was determined the aliens had been picked up from a stash house in Mission, where they had been harbored and were subsequently being transported to another destination. Believing additional undocumented aliens were still being harbored at the same stash house; law enforcement subsequently conducted a consensual search of the stash house where they discovered 12 additional aliens in the residence, along with Solis, Alexander Barrios-Grajales, 28, and Alejandro Garcia-Nava, 20.
Vega-Zapata and Vargas were later apprehended for their involvement in the alien harboring. Some of the undocumented aliens provided statements to agents implicating the defendants and their involvement in the alien harboring, according to the court records.
At the hearing today, additional testimony was presented concerning the role each individual defendant played in the offense. Vega-Zapata was in charge of hiring individuals who would in turn secure stash houses and drivers for the organization’s use. Diaz-Gopar made arrangements with some of the aliens while still in Mexico and not only guided them through Mexico but was also to guide them north once they had been smuggled into the U.S. Vargas hired the juvenile to drive the transport vehicle which was subsequently involved in the accident, while Solis was the caretaker of the aliens at the stash house.
All four defendants have been in custody since their arrest where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Barrios-Grajales and Garcia-Nava have also pleaded guilty to related charges and were also sentenced to federal prison.
The investigation was the result of an investigation led by Homeland Security Investigations with the assistance of Border Patrol and the Palmview Police Department. Assistant United States Attorney Linda Requénez prosecuted the case.
Texas Man Sentenced, Another Pleads Guilty to Roles in Vehicle Theft RingRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Vincent L. Simmons, 48, of Porter, Texas, was sentenced and Carey Dale Reed, 40, of Conroe, Texas, pleaded guilty before U.S. District Judge Richard T. Haik for participating in a scheme to steal tractors in Texas and sell them in Louisiana. Simmons was sentenced to 30 months in prison and three years of supervised release.
According to evidence presented at the guilty plea hearings, from December 2010 to October 2011, Simmons conspired with Reed to steal a John Deer mower, a CASE Skidster front end loader, and a Kubota KX 61 Mini-Excavator. They then sold the machinery to Katherine and Ronnie Larocca of Calcasieu Parish, who were also part of the scheme.
Reed faces up to five years in prison, three years of supervised release, and a $250,000 fine for the conspiracy count. A sentencing date was not set.
The Louisiana State Police and the FBI conducted the investigation. Assistant U.S. Attorney James T. McManus is prosecuting the case.
Storeowner Sentenced for Defrauding Food Stamp ProgramRead the Press Release
PITTSBURGH - A Whitehall resident has been sentenced in federal court to three years’ probation with eight months’ home detention and ordered to pay $101,333 in restitution on his conviction of wire fraud and food stamp fraud, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on Samson Dweh, 32 of Pittsburgh, Pa.
According to information presented to the court, Dweh was the owner and operator of Mariama African Store, a retail specialty food store on Brownsville Road in Pittsburgh. Mariama participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the Food Stamp Program. Food stamp recipients could purchase eligible food items at Mariama using food stamp benefit cards. The defendant was aware that Food Stamp Program rules prohibited the exchange of food stamp benefits for cash and/or ineligible items. Despite this knowledge, on multiple occasions, the defendant exchanged food stamp benefits for cash on a discounted basis, usually giving his customers only 50 cents on the dollar for food stamp benefits. The defendant also permitted food stamp customers to purchase ineligible items with food stamp benefits and accepted food stamp benefits as payment on credit accounts and loans.
Prior to imposing sentence, Judge Cercone stated that the sentence, which was within the advisory range established by the United States Sentencing Guidelines, was a necessary and appropriate sentence.
Assistant United States Attorney Tonya Sulia Goodman prosecuted this case on behalf of the government. Assistant United States Attorney Colin Callahan litigated the case on behalf of the Affirmative Civil Enforcement Section of the United States Attorney's Office.
U.S. Attorney Hickton commended the Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Homeland Security Investigations for the investigation leading to the successful prosecution of Dweh.
St. Paul Felon Pleads Guilty to Possessing A Stolen FirearmRead the Press Release
MINNEAPOLIS — Earlier this week in federal court, a 31-year-old St. Paul man pleaded guilty to one count of Possession of a Stolen Firearm. Michael Anthony Vargas, who was charged via an Information on May 3, 2014, entered his guilty plea on June 3, 2014 before United States District Court Judge Joan N. Ericksen.
In his plea agreement, Vargas admitted that on January 8, 2014, he possessed a stolen Smith & Wesson 9-millimeter pistol, which was recovered during a traffic stop by the St. Paul Police Department.
For his crime, Vargas faces a potential maximum penalty of 10 years in federal prison. Judge Ericksen will determine his sentence at a future hearing, yet to be scheduled.
This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Saint Paul Police Department. It is being prosecuted by Assistant United States Attorney LeeAnn K. Bell.Six Charged in Racketerring Conspiracy Case Involving Nine MurdersRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of a twenty-eight count second superseding indictment charging Nathaniel Harris (23, Bradenton), Napoleon Harris (29, Bradenton), Charlie L. Green (27, Bradenton), Jerry W. Green, Jr. (31, Bradenton), Corey Deonta Harris (23, St. Petersburg), and Deonte Jamal Martin (28, Bradenton) for their roles in a racketeering conspiracy involving murder, attempted murder, kidnapping, robbery, and drug trafficking. Seven of the offenses carry a maximum penalty of death.
A confidential “TIP LINE” has been established for anyone with information regarding any homicides, robberies, narcotics and/or violent criminal acts conducted by these individuals or their associates. Anyone with information relevant to this case is encouraged to call 1-888-ATF-TIPS (1-888-283-8477).
According to court documents, the six individuals were part of an ongoing criminal enterprise. Between April 2007 and August 2013, nine individuals were shot and killed, as a result of the enterprise’s criminal activity. Among those murdered were Christopher Jenkins, Demetrious Cunningham, Calvin Barnes, Ceola Lazier, Carlos Jurado, Brenton Coleman, Joseph Evans, Rodney D. Lamb, and Erika Williams. The murder of Brenton Coleman took place in the vicinity of the 13th Avenue Recreation Center, commonly referred to as the “Dream Center,” and was witnessed by a crowd of young children attending youth football practice.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the State Attorney’s Office (12th Judicial Circuit Court), the Manatee County Sheriff’s Office, the Bradenton Police Department, the Palmetto Police Department, the Sarasota Police Department, and the St. Petersburg Police Department. It will be prosecuted by Assistant United States Attorneys Walter E. Furr, III, Christopher F. Murray, and Trial Attorney Laura Gwinn of the Department of Justice’s Organized Crime and Gang Section.
Click HERE to view Superseding Indictment
Significant Sentence Handed Down for Firearms TraffickingRead the Press Release
CORPUS CHRISTI, Texas - Angel Aquino-Pineda, 27, of McAllen, has been ordered to serve more than eight years in the Bureau of Prisons for his role in trafficking AK-47 variant rifles to Mexico, announced United States Attorney Kenneth Magidson. Aquino-Pineda pleaded guilty before Senior U.S. District Judge Hayden Head on March 26, 2014.
In handing down the 100-month sentence, Judge Head observed that the firearms in Aquino-Pineda’s possession were “were weapons of war.” The court further expressed relief that the assault rifles were intercepted, as there was simply no way to know how many lives they would have taken.
In 2013, the Kingsville Specialized Crimes and Narcotics Task Force conducted a traffic stop on a truck driven by Aquino-Pineda in Kingsville and located 35 AK-47 variant rifles and $26,000 concealed in a false compartment. Seven of the rifles had obliterated serial numbers. Aquino-Pineda admitted his role was to transport the firearms from Houston to McAllen. The firearms would then be transported to Mexico.
Six Houston residents have also pleaded guilty for their roles in a conspiracy to traffic the firearms. Javier Resendez, 29, entered a guilty plea before U.S. Magistrate Judge Janice Ellington. Abel Lopez, 34, Arturo Garcia, 30, Roberto Santana Mears, 22, Mary Bel Deanda, 39, and Martha Gonzales, 41, previously pleaded guilty at varying times before U.S. Magistrate Judges Ellington and Jason Libby. They all await sentencing.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) traced the firearms to Houston purchasers Deanda, Gonzales and Mears, who admitted they were “straw purchasers” for Resendez. Resendez indicated Garcia recruited him to purchase firearms for Lopez and that the firearms would be taken to Mexico. Resendez then recruited Deanda and Gonzales to “straw purchase” the firearms on his behalf. Mears admitted he was also a “straw purchaser” for Lopez.
ATF investigated with the assistance of the Kingsville Specialized Crimes and Narcotics Task Force. Assistant U.S. Attorneys Hugo R. Martinez and Jeffrey D. Preston are prosecuting the case.
Sentencing for May 28 - June 2, 2014Read the Press Release
Giovanni Valle, 29, of Salt Lake City, Utah, was sentenced by Federal District Court Judge Scott W. Skavdahl on May28, 2014, for distribution of methamphetamine. Valle was arrested in California. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Owen John Brown, 27, of Riverton, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on May 29, 2014, for resisting a federal officer with a dangerous weapon. Brown was arrested in Denver, Colorado. He received 18 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Federal Bureau of Investigation.
Michael John Anderson, 27, of Cheyenne, Wyoming, was sentenced by Federal District Court Chief Judge Nancy D. Freudenthal on June 2, 2014, for failure to register as a sex offender. Anderson was arrested in Cheyenne. He received time served, to be followed by five years of supervised release with the first five months to be served in a community corrections facility and was ordered to pay a $100.00 special assessment. This case was investigated by the United States Marshal Service.
Fort Washakie Resident Convicted of Assault on a Federal Officer
U.S. Attorney Christopher A. Crofts announced today that Fort Washakie resident Kevin Paul Brown, 24, has been convicted in federal court. Brown was charged by indictment with a violation of 18 U.S.C. § 111, assault on a federal officer. On June 3, 2014, a jury found Brown guilty on the sole count of the indictment after a two-day jury trial in the U.S. District Court in Casper. Brown is scheduled to be sentenced by Federal District Court Judge Scott Skavdahl on August 15, 2014. This case was investigated by the Federal Bureau of Investigation Agency in Lander Wyoming.
Sacramento Man Indicted for Selling Machineguns and ExplosivesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against James Christopher Malcolm, 29, of Carmichael, charging him with transfer of explosive materials for use in a crime of violence or drug trafficking crime; unlawful dealing in firearms; and two counts of possession of machine guns, U.S. Attorney Benjamin B. Wagner announced.
According to court documents, Malcolm met with a confidential informant to discuss a plan to sell fully automatic rifles. At the meeting, Malcolm told the informant that distributing firearms was only a side business, and his main business was distributing explosives and poison. Later, Malcolm sold four short-barrel AR-15-style machine guns, 1.5 pounds of improvised explosive material, three blasting caps, and a firearm silencer to undercover agents posing as arms dealers for drug trafficking organizations. Additionally, Malcolm told undercover law enforcement agents that he could manufacture parts to convert Glock pistols into fully automatic machine guns. Malcolm actually demonstrated the process of converting pistols to machine guns and over the course of various meetings sold the agents parts to convert 10 pistols.
“Trafficking in explosives and machine guns poses a real threat to public safety,” said U.S. Attorney Wagner. “Fortunately, federal law enforcement agencies acted swiftly in neutralizing the threat in this case.”
“Firearms trafficking is the mechanism in which criminals obtain their firearms used in violent crimes,” said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. “ATF will continue to focus our efforts on criminals who are unlawfully manufacturing and selling machine guns, and explosive materials.”
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the FBI. Assistant United States Attorney Justin Lee is prosecuting the case.
Malcolm is currently in custody at the Sacramento County Jail. He is scheduled to be arraigned on June 12, 2014.
If convicted of the first count, Malcolm faces a mandatory sentence of 10 years in prison and a $250,000 fine to be run consecutive to any other sentence. The maximum sentence count two is five years in prison a $250,000 fine, and for counts three and four the maximum sentence is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Roswell Man Sentenced to Prison for Unlawful Possession of Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Theodore Olguin, 26, of Roswell, N.M., was sentenced in federal court in Las Cruces, N.M., to 60 months in federal prison followed by three years of supervised release for being a felon in possession of a firearm.
Olguin was charged in May 2012, in a two-count indictment alleging that he unlawfully possessed a firearm and ammunition on Feb. 15, 2011 and on Feb. 23, 2011, in Eddy County, N.M. At the time, Olguin was prohibited from possessing firearms or ammunition because he previously had been convicted of burglary of a vehicle in the 5th Judicial District Court for the State of New Mexico. Olguin was arrested on Aug. 14, 2012, and has been in federal custody since that time.
On Jan. 15, 2013, Olguin entered a guilty plea to Count 2 of the indictment charging him with unlawfully possessing a firearm and ammunition on Feb. 23, 2011.
According to court filings, Olguin was arrested on local charges by the Artesia Police Department on Feb. 23, 2011, after officers recovered a loaded pistol from his vehicle following a traffic stop. Investigation revealed that the pistol, which had been reported stolen in Sept. 2010, and had been used to shoot at the residence of a Artesia police officer in Jan. 2011. The pistol also had been used to shoot at two vehicles parked in the driveway of an Artesia police officer’s residence on Feb. 15. 2011. Evidence presented during a court hearing indicated that Olguin fired the pistol on both occasions, and the court relied on this information in enhancing Olguin’s sentence by 14 months.
This case was investigated by the Roswell office of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Mexico State Police and the Artesia Police Department and was prosecuted by Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office.
Rochester Restauranteur Admits to Tax EvasionRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Konstantinos Votsis, 63, of Rochester, N.Y., pleaded guilty before U.S. District Judge Frank P. Geraci to tax evasion. The charge carries a maximum sentence five years in prison, a fine of $616,124, or both. In addition, Votsis agreed in related asset forfeiture proceedings to forfeit $250,000 to the United States.
Assistant U.S. Attorney John J. Field, who is handling the matter, stated that Votsis owned and controlled Rookies Neighborhood Sports Bar, a restaurant and bar in Gates, N.Y. In 2009, the defendant learned of a pending audit of his sales taxes, and in response, directed that sales data contained in Rookies’ point-of-sale computer system be deleted. This data, which was later recovered by the Government, showed that Votsis failed to report $986,660 in income from his Rookies business from 2006 through 2008. By concealing such income, the defendant evaded paying $308,062 in taxes that he owed to the Internal Revenue Service.
Acting IRS-Criminal Investigation Special Agent in Charge Shantelle P. Kitchen said: “Business owners are expected to report all of their gross receipts. When business owners hide receipts to evade paying all of the taxes they are legally required to, law abiding businesses and taxpayers ultimately end up making up the difference. IRS-Criminal Investigation is committed to seeing that everyone pays their fair share.”
The plea is the culmination of an investigation by Special Agents of the Internal Revenue Service-Criminal Investigation, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge.
Votsis will be sentenced by Judge Geraci on September 4, at 3:30 p.m.Rochester Man Pleads Guilty to Child Pornography ChargeRead the Press Release
Rochester, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Zachary S. Dressner, of Rochester, N.Y., pleaded guilty before U.S. District Judge Charles J. Siragusa, to possessing images of child pornography. The charge carries a maximum penalty of 10 years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney Bradley E. Tyler, who is handling the case, stated that between July and November 2011, the defendant used his home computer to acquire and download images of children younger than 16 years of age. The images included the minors engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Sentencing is scheduled for September 5, 2014, at 11:00 a.m. before Judge Siragusa.
The plea is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation.Rhode Island Sears Franchisee Pleads Guilty to FraudRead the Press Release
PROVIDENCE, R.I. – Joseph Kilty, 53, of Wakefield, R.I., a former authorized dealer and franchisee of a Sears Hometown and Outlet, Inc. store in Middletown, R.I., pleaded guilty in federal court in Providence today to defrauding Sears of more than $154,000, announced United States Attorney Peter F. Neronha; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
Appearing before U.S. District Court Chief Judge William E. Smith, Kilty admitted to the court that between January 2012 through June 2013, he failed to deposit $154,120 in cash receipts into a bank account he was required by Sears to establish and into which all store receipts were to have been deposited. Kilty admitted that he deposited the receipts in question into other personal bank accounts which he controlled.
Kilty admitted to the court that as part of the scheme he created false documents to make it appear that the deposits had been made, including 47 fraudulent deposit slips and several fake bank reconciliation forms.
Additionally, Kilty admitted to the court that he created two counterfeit bank checks in the amounts of $99,000 and $28,319.75 made payable to Sears Hometown and Outlet, Inc., and that he provided the checks to a Sears district manager. The fraudulent checks were eventually mailed to the Sears Hometown and Outlet office in Hoffman Estates, Illinois.
Kilty pleaded guilty today to one count of mail fraud. He is scheduled to be sentenced by U.S. District Court Judge William E. Smith on September 18, 2014.
Mail fraud is punishable by statutory penalties of up to 20 years in federal prison; a fine of up to $250,000 or twice the gross gain or the gross loss resulting from the offense, whichever is greater; and a term of supervised release of up to 5years.
The matter was investigated by the U.S. Postal Inspection Service and the FBI.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Providence Resident Pleads Guilty in Alleged $1.8 Million Dollar Fraudulent Tax Return SchemeRead the Press Release
PROVIDENCE, R.I. – Julian Balbi, 22, of Providence, pleaded guilty in federal court in Providence today to participating in a scheme in which personal identifying information of more than 1,200 individuals was collected, of which many were used to file fraudulent tax returns with the IRS totaling more than $1.8 million dollars. Balbi pleaded guilty to four counts of aggravated identity theft and one count each of conspiracy and theft of government property.
Balbi, and a co-defendant in this matter, Richard Lara, 22, of Providence, were arrested by Rhode Island State Police on January 2, 2012, on an unrelated matter during a routine traffic stop. During a court authorized search of the vehicle, State Police discovered 87 U.S. Treasury checks made out to third parties totaling $596,646.46 allegedly generated by fraudulent tax returns. Also seized were several ledgers and notebooks containing the personal identity information, including Social Security numbers and dates of birth, of hundreds of individuals; ledgers containing employer information such as Employee Identification Numbers and addresses; and a USB flash drive containing numerous spreadsheets detailing taxpayer information and fraudulent tax returns that were allegedly filed with the IRS.
Balbi’s guilty plea is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’DonnellSuperintendent of the Rhode Island State Police, William P. Offord, Special Agent in Charge of IRS Criminal Investigation, and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service
According to information presented to the court, Rhode Island State Police executed a court authorized search of Balbi’s Providence residence where they seized numerous computers and USB flash drives. A forensic examination of the computers and flash drives allegedly revealed a number of spreadsheets containing ledgers identical to those on the flash drives allegedly seized from Mr. Balbi’s vehicle. A court authorized search of Richard Lara’s residence resulted in the seizure of another ledger which allegedly contains personal identity information which matched information contained on the flash drive allegedly seized from Balbi’s vehicle.
According to information presented to the court, IRS and U.S. Secret Service agents interviewed 17 individuals listed as payees on the treasury checks seized from Balbi’s vehicle. All 17 stated they did not file the tax return in question, and that they did not know Balbi or Lara. The IRS conducted an analysis of all of the information associated with the 1,258 individuals listed on the various ledgers and computers allegedly seized from Balbi and Lara. The investigation revealed that between April 2011 and January 2012, 823 fraudulent tax returns seeking refunds totaling $1,854,438.46 were allegedly filed with the IRS.
Julian Balbi is scheduled to be sentenced by U.S. District Court Judge Mary M. Lisi on September 18, 2014.
Conspiracy to commit a crime against the U.S. Government is punishable by statutory penalties of up to 5 years in federal prison, a fine of up to $250,000 and a term of supervised release of up to 3 years. Theft of government property (treasury checks) is punishable by statutory penalties of up to 10 years in federal prison and a fine of up to $250,000. Aggravated identity theft is punishable by statutory mandatory sentence of 2 years imprisonment, to be served consecutive to the sentence imposed for theft of government property, and a fine of $250,000.
Richard Lara is awaiting trial on an indictment returned by a federal grand jury on February 26, 2014, which charges him with four counts of aggravated identity theft and one count each of conspiracy and theft of government property
An indictment is merely an allegation 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.
The cases are being prosecuted by Assistant U.S. Attorney John P. McAdams.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Providence Heroin Dealer Arrested While on State Probation Sentenced to 5 Years in Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Moises Tronilo, 28, of Providence, was sentenced today to 5 years in federal prison for trafficking heroin and being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Tronilo to serve 3 years of supervised release upon completion of his prison term. Tronilo pleaded guilty on November 5, 2013, to one count each of possession with the intent to distribute heroin and being a felon in possession of a firearm.
According to information presented to the court, an investigation in March 2013 by ATF agents into Tronilo’s alleged drug trafficking activities resulted in five undercover purchases of heroin from Tronilo within an 11-day period. The fifth purchase of heroin was in return for payment in cash and a .40 caliber Glock handgun. Tronilo was arrested immediately upon completion of the 5th transaction, when he took possession of the firearm. The transactions were electronically monitored by ATF agents.
According to information presented to the court, on March 22, 2013, ATF agents conducted a court authorized search of Tronilo’s Providence residence and seized a loaded 9mm Browning pistol, 35 grams of heroin, and various items used in the packaging and sale of heroin.
According to information presented to the court, Tronilo was previously convicted in Rhode Island State Court for possession of narcotics with the intent to prosecute. At the time of his arrest by ATF agents, Tronilo was serving a 51-month term of probation.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Postal Carrier and Another Convicted in Massive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
HOUSTON – Tangela R. Jackson-Lezeau, 34, and Kerry Lionel Ruffin, 31, have both entered guilty pleas in a scheme in which fraudulent tax returns were filed using identification information that was stolen and used without lawful authority, announced U.S. Attorney Kenneth Magidson.
Both entered guilty pleas to conspiracy to commit mail fraud. Ruffin also pleaded guilty to aggravated identity theft.
According to court records, Ruffin obtained stolen personal identifying information (PII) from a Fulton County, Ga., employee who had received the information from Rance Hunter, 29, of Atlanta, Ga. Hunter had access to the sheriff’s office database including names, birth dates and Social Security numbers of arrestees, inmate, and employees.
Ruffin, of Atlanta, acted as a conduit, funneling the stolen PII to co-conspirators in Houston. From 2010 through 2013, Ruffin’s co-conspirators used the stolen PII to file thousands of fraudulent tax returns claiming more than $12 million in refunds. According to Internal Revenue Service records, the National Treasury paid out more than $6 million before the scheme was discovered. The tax refunds generated by the fraudulent returns were often deposited onto reloadable debit cards and mailed to addresses under control of the conspirators.
Jackson-Lezeau was employed as a postal carrier in Port Saint Lucie, Fla. She was recruited into the scheme and paid for allowing addresses on her delivery route to be used by the co-conspirators as locations where the fraudulently obtained tax refunds could be sent. After gathering the mail containing the refund debit cards, Jackson-Lezeau sent it via express mail to her co-conspirators in Houston.
Hunter previously pleaded guilty in a companion case and is set for sentencing Oct. 8, 2014.
Co-conspirator Calvin Shelton, a postal carrier in Atlanta, pleaded guilty May 21, 2014 to conspiracy to commit mail fraud, mail fraud, seven counts of wire fraud and seven counts of aggravated identity theft for his part in the scheme. He remains in custody awaiting sentencing, set for Aug. 14, 2014.
U.S. District Judge Keith P. Ellison, who accepted the guilty pleas today, has set sentencing for Sept. 3, 2014. At that time, Ruffin and Jackson-Lezeau face of up to 20 years imprisonment for the conspiracy charge. Ruffin also faces another mandatory two years for the aggravated identity theft which must be served consecutively to any other sentence imposed. Both convictions also carry a possible $250,000 maximum fine. They were permitted to remain on bond pending that hearing.
The matter was investigated by the U.S. Postal Inspection Service and Internal Revenue Service - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney James R. Buchanan.
Part Owners of Subway Restaurants in Lexington Admit Harboring and Under Compensating Unauthorized Aliens, and Tax EvasionRead the Press Release
LEXINGTON Two former part owners of four Subway restaurants in Lexington admitted they employed unauthorized aliens and intentionally failed to pay them lawful wages.
Amrutlal Patel, 46, pleaded guilty to harboring unauthorized aliens, and his wife Dakshaben Patel, 46, pleaded guilty to evading employment taxes. Both defendants also pleaded guilty to failure to pay employees overtime hours.
According to court documents, from April 2012 until November 2013, Amrutlal Patel used his residence to harbor four unauthorized aliens, who were employed at the Subway restaurants. These employees worked as many as 80 hours a week, but the Patels paid them below minimum wage and didn’t compensate them for overtime hours. Federal law requires employers to pay employees a minimum wage of $7.25 an hour and one and one-half times that rate for hours worked that exceed 40 in a week.
Dakshaben Patel acknowledged that she omitted unauthorized aliens from the payroll in order to evade taxes. According to the plea agreement, the couple must pay between $9,000 and $9,900 in payroll taxes, a $65,000 money judgment which is in lieu of a real estate forfeiture to the government, and $40,000 in restitution to the improperly compensated employees.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Gary T. Hartwig, Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), Ronnie Bastin, Chief, Lexington Division of Police and Christopher A. Henry, Special Agent in Charge, IRS, Criminal Investigation Division, jointly announced the plea.
Assistant U.S. Attorneys Hydee Hawkins and David Marye, and Civil Rights Attorney, Benjamin Hawk, prosecuted this case on behalf of the federal government.
The Patels will be sentenced on September 4, 2014. Amrutlal Patel faces a maximum of ten years in prison and a Dakshaben Patel faces a maximum of five years. However, any sentence imposed by the Court would come after consideration of the U.S. Sentencing Guidelines and the federal statutes governing the imposition of sentences.Owner of Ozark Businesses Sentenced for Failure to Pay Employment TaxesRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of two Ozark, Mo., businesses has been sentenced in federal court for willfully failing to pay over hundreds of thousands of dollars in employment taxes.
Kerry W. May, 65, of Ozark, was sentenced by U.S. District Judge Beth Phillips on May 29, 2014, to one year and one day in federal prison without parole. The court also ordered May to pay $94,485 in restitution (on the unpaid interest), in addition to the $373,200 in restitution that May has already paid.
On Oct. 3, 2012, May pleaded guilty to two felony counts of failure to collect, or to truthfully account for and pay over employment taxes for his two corporations, Spring Creek Antiques, Inc. (with approximately 25 employees) and Riverview Antique Center, Inc. (with approximately 10 employees). As corporate president of both businesses, May failed to account for and pay over the employees’ trust fund portion as well as the corporations’ portion of the employment taxes to the Internal Revenue Service.
May admitted that, from 2003 through 2009, he engaged in a deliberate scheme to avoid reporting or paying the trust fund taxes on approximately $373,200 he withheld from his employees’ paychecks. According to court documents, May withheld taxes from his employees’ pay, but simply pocketed the funds without reporting the withholding to the IRS or making the required trust fund payments.
May personally maintained the books and records for both businesses, which operated as S-corporations. May, who has a bachelor’s degree in accounting, has been a senior tax advisor with H&R Block and previously had an H&R Block franchise. He also served as an enrolled agent, representing clients in their dealings with the IRS.
To perpetrate his scheme, according to court documents, May calculated and issued bi-weekly paychecks to employees, including himself and his wife. The paychecks included detailed withholding information. Therefore, May was clearly aware on an ongoing basis how much employment tax was due.
This case was prosecuted by Assistant U.S. Attorney Steven Mohlhenrich. It was investigated by IRS-Criminal Investigation.Owner of Louisiana Film Tax Credits Companies Sentenced for Wire FraudRead the Press Release
BATON ROUGE, LA – United States Attorney Walt Green announced today the sentencing of GREGORY MARTIN WALKER, 47, formerly of Baton Rouge, Louisiana. WALKER previously pled guilty on October 23, 2013, to wire fraud in violation of Title 18, United States Code, Section 1343.
WALKER was sentenced today by U.S. District Judge James J. Brady to 70 months imprisonment and a term of 3 years on supervised release following imprisonment. WALKER was also sentenced to pay restitution in the amount of $1,833,619.75 to the 24 victims of his fraud. Additionally, WALKER was ordered to forfeit $971,418 to the United States, said funds being the property which was derived from his scheme to defraud investors and purchasers of film tax credits.
In total, WALKER sold bogus tax credits with a face value of $3,823,441 to 24 investors and collected $2,560,670 from them.
WALKER was engaged in the business of buying and selling of Louisiana motion picture investor tax credits. WALKER owned and operated The Bishop, LLC, an entity which purported to own film tax credits for resale to others. WALKER represented to purchasers that he owned tax credits for various film productions, including Universal Soldier IV, El Gringo, Mama I Want to Sing, and Transit.
The State of Louisiana, Department of Economic Development, Office of Entertainment Industry Development (“LDED”) administered the Louisiana Motion Picture Incentive Act. In order to develop and promote film productions, the State of Louisiana offered tax credits for the production of movies within the State. Such tax credits can be used to pay the Louisiana income taxes of the film production companies, redeemed by the film production companies for a discounted price at the Louisiana Department of Revenue (“LDR”), or even sold to others who could use the tax credits to pay their Louisiana income tax liabilities. LDR was vested with the authority to disallow tax credits if the transferor of tax credits did not have rights to claim or use the tax credits at the time of their purported transfer.
Strategies for Investment, LLC (“SFI”) was a Baton Rouge business owned and operated by a local Certified Public Accountant (“CPA”). WALKER and The Bishop sold tax credits to SFI, which re-sold said credits to tax clients of the CPA. WALKER and The Bishop represented that they owned and controlled the tax credits which they sold to SFI.
From November 2011 through July 2012, WALKER marketed tax credits to the CPA who owned and operated SFI. From August 2011 through September 2013, WALKER also sold tax credits to other Louisiana taxpayers who sought tax credits to pay their Louisiana income tax liabilities.
Beginning in August, 2011, and continuing through in or about January, 2013, WALKER devised and executed a scheme to defraud purchasers of Louisiana film tax credits. WALKER falsely represented to purchasers that he owned certain tax credits, when in fact, he neither owned nor controlled such film tax credits. In order to carry out his scheme to defraud, WALKER forged the signatures of various individuals on tax credit purchase agreements and used interstate wires to complete his scheme.
WALKER sold purported tax credits to SFI on approximately 11 occasions between January 3, 2012 and June 20, 2012. SFI paid WALKER and The Bishop approximately $971,418 for the purchase of tax credits purporting to have a face value of $1,456,926. WALKER used the funds obtained through his scheme for his personal enrichment.
This matter was jointly investigated by the Federal Bureau of Investigation, the Louisiana Inspector General’s Office, and the United States Grand Jury for the Middle District of Louisiana. The case is being prosecuted by Assistant United States Attorney Rene I. Salomon. Additional assistance was provided by the Louisiana Department of Economic Development and the Louisiana Department of Revenue.
United States Attorney Green stated, “We will continue to safeguard all types economic programs that fall prey to fraudsters and ensure they are held accountable for their actions.”
FBI Special Agent-in-Charge Michael Anderson stated, “This conviction should convey a clear message to the public that schemes to defraud that interfere with legitimate government incentives to stimulate economic growth in Louisiana will not be tolerated.”
Louisiana Inspector General Stephen Street commented, “This sort of blatant fraud undermines the entire tax credit program and cannot be tolerated. We will continue working with the FBI and United States Attorney to make sure that those who engage in this sort of corruption face criminal consequences.”
New York Man Charged with Attempted Drug PossessionRead the Press Release
Carl O’Neal of Queens, NY, was charged today by indictment with attempting to possess with intent to distribute 500 grams or more of cocaine, in May 2014, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 40 years’ imprisonment, five years’ supervised release, a $5 million fine, and a $100 special assessment.
The case was investigated by Immigration and Customs Enforcement – Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Anita Eve.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Navajo Man from Chi-Chi-Tah, N.M., Sentenced to Federal Prison for Assaulting Intimate PartnerRead the Press Release
ALBUQUERQUE – Mark Patrick Eddy, 45, was sentenced this morning to a year and a day in federal prison followed by three years of supervised release for his assault conviction, announced U.S. Attorney Damon P. Martinez and Director John Billison of the Navajo Nation Division of Public Safety.
Eddy, an enrolled member of the Navajo Nation who resides in Chi-Chi-Tah, N.M., was arrested on Jan. 14, 2014, on a criminal complaint charging him with assault with a dangerous weapon and assault resulting in serious bodily injury. Court filings reflect that Eddy assaulted his girlfriend, a Navajo woman, on June 21, 2013, at a residence located on the Navajo Indian Reservation, by kicking the victim in the head with his cowboy boots.
On Feb. 28, 2014, Eddy pleaded guilty to a felony information charging him with assault resulting in serious bodily injury. In entering his guilty plea, Eddy admitted assaulting his intimate partner by throwing her to the ground and kicking her in the head, causing a laceration that required medical attention.This case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Special Assistant U.S. Attorney David Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Morrisville Man Indicted on Gun ChargeRead the Press Release
Jonathan A. Miller, Jr., 56, of Morrisville, Pennsylvania was charged on June 3, 2014, by indictment with possession of a firearm and ammunition by a convicted felon. The indictment charges that Miller committed this offense in Penndel, Pennsylvania on January 19, 2013.
If convicted,Miller faces a maximum sentence of ten years imprisonment. Miller also faces a maximum period three years supervised release, a $250,000 fine, and a $100 special assessment.
This case was investigated by the Federal Bureau of Investigation and the Penndel Police Department, and is being prosecuted by Assistant United States Attorney Andrea G. Foulkes.Click here to view the indictment
An Indictment or an Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Mizpah Man Sentenced for Robbing the First State Bank of Bigfork in KelliherRead the Press Release
MINNEAPOLIS — Earlier this week in federal court, a 21-year-old Mizpah man was sentenced for his role in the robbery of the First State Bank of Bigfork in Kelliher, Minnesota on December 10, 2012. On June 3, 2014, United States District Court Judge Donovan W. Frank sentenced Cody Lowell Troy to 120 months in federal prison, followed by 5 years of supervised release. Troy, who was indicted along with a co-defendant on January 15, 2013, pleaded guilty to one count of Brandishing a Firearm During a Crime of Violence.
In his plea agreement, Troy admitted to robbing the bank while brandishing a 12-gauge, sawed-off shotgun that had a partially obliterated serial number. He stole approximately $3,738.
This case was the result of an investigation by the Federal Bureau of Investigation, the Beltrami County Sheriff’s Office, the Headwaters Safe Trails Task Force, and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Kevin S. Ueland.Meridian Woman Pleads Guilty to Controlled Substance DeliveryRead the Press Release
BOISE – Kristen Rast, 44, of Meridian, Idaho, pleaded guilty today in federal court to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. Sentencing is set before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise on August 25, 2014.
According to the plea agreement, on four occasions in June through August of 2012, Rast knowingly and intentionally distributed to an undercover police officer, 356 pills of 80 mg Oxycontin, which contains oxycodone, a Schedule II narcotic and controlled substance. She had obtained the controlled substances by prescription from a provider.
This investigation was initiated by the Meridian Police Department and investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Service’s Office of Inspector General.
Mathis Man Sentenced to Life in Prison for Large-Scale Drug-Trafficking and Money Laundering ConspiraciesRead the Press Release
CORPUS CHRISTI, Texas – Ricardo Guerrero, 55, of Mathis, has been sentenced to federal prison for conspiracy to commit drug trafficking, conspiracy to launder money and being a felon in possession of a firearm, announced United States Attorney Kenneth Magidson. A federal jury in Corpus Christi convicted Guerrero following an eight-day trial and approximately two hours of deliberation on Tuesday, March 18, 2014.
Today, Senior U.S. District Judge Hayden Head, who presided over the trial, handed Guerrero a total sentence of life in federal prison. As part of his sentence, Guerrero was also ordered to forfeit three properties to the U.S. and pay a money judgment of $500,000.
During trial, the government provided evidence that Guerrero was the leader of the conspiracies, which existed from 2009 through his arrest on Sept. 26, 2013. Guerrero was proven to be a major dealer in methamphetamine, heroin and cocaine.
Over the course of the two-year investigation, law enforcement agents seized more than six kilograms of methamphetamine, five kilograms of heroin and six kilograms of cocaine. In addition to these amounts, trial testimony also proved that Guerrero’s criminal organization was moving kilogram amounts of methamphetamine, heroin and cocaine at least once or twice a month. He obtained the illegal narcotics from Mexico and had them crossed into the United States at Brownsville, McAllen or Laredo and stored the narcotics on numerous properties he owned in Mathis and in neighboring counties. Guerrero sold the methamphetamine, heroin and cocaine to sources throughout South Texas, as far north as Houston, and even as far west as San Antonio.
The money laundering conspiracy involved concealing money Guerrero made from his drug trafficking, primarily through cattle and vehicle auctions.
The government presented testimony from 52 witnesses, which included information about the arrests of 21 other conspirators that had been working for Guerrero in the drug trafficking and money laundering conspiracies. Those defendants all entered guilty pleas to their respective roles prior to trial.
Jesus Borja-Borja, 26, of Edinburg, pleaded guilty to the conspiracy, specifically, to being Guerrero’s main source of supply in obtaining the illegal narcotics. Elena Barrera, 36, of Mathis, and Frank Coronado, 30, of Brownsville, were convicted of conspiracy to commit money laundering. Wayne Dedow, 49, of Mathis, Miguel Montemayor, 37, of Beeville, and Douglas Massey, 34, Ricky Bazaldua, 37, and Ramon Alonzo Gonzales, 45, all from Corpus Christi, pleaded guilty for transporting or selling specific loads of narcotics for Guerrero. Six others - Krystan Rios, 23, Eddie Hernandez, 32, Victor Arocha, 54, Sulema Vasquez, 50, Jada Gregg Warren, 30, and Daniel Sosa, 44, all of San Antonio - entered guilty pleas to their roles in transporting or selling specific loads of narcotics for Guerrero.
The remaining conspirators pleaded guilty to their roles in transporting or selling narcotics for Guerrero. These included Carlos Molina, 71, and Roberto Contreras, 57, both of Robstown, Richard Pacheco, 42, of Karnes City, Lee Roy Tanguma, 38, of Beeville, Benjamin Hernandez, 38, of Sandia, and Emmanuel Pabon Lugo, 37, and Amalia Dimas, 36, both of Corpus Christi.
All 21 of the other defendants have already been sentenced to prison terms ranging from 18 months to 180 months.
Those charged in relation to this case were identified through a long-term investigation conducted jointly by Homeland Security Investigations and Texas Department of Public Safety. The case is being prosecuted by Assistant United States Attorney Chad W. Cowan.
Marinette Woman Sentenced on Heroin ChargesRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on June 3, 2014, Karen Ann Sanchez (age: 38) was sentenced to 18 months in federal prison by Chief United States District Judge William C. Griesbach. She had previously entered a guilty plea to a charge of using a communication facility (i.e., a telephone) to facilitate the distribution of heroin.
According to her plea agreement and other documents filed with the court, Sanchez worked in concert with eight other co-defendants to facilitate the movement and delivery of heroin to the Marinette, Wisconsin, and Menominee, Michigan areas from a primary supplier in Chicago.
The court noted the “devastating effect” that heroin use has had in the Marinette / Menominee region. The court described the coordinated actions of Sanchez and her co-defendants as essentially “a drug co-operative” designed not for the purpose of creating a profit, but to increase purchasing power and increase the frequency of coordinated “heroin runs” to Chicago.
The case was investigated by Special Agents from the Wisconsin Department of Justice, Department of Criminal Investigation, the U.S. Drug Enforcement Administration, the Marinette Police Department, Marinette Sheriff’s Office, Menominee (Michigan) Police Department, Menominee (Michigan) Sheriff’s Office, Wisconsin High Intensity Drug Trafficking Area (HIDTA) Task Force, Chicago HIDTA Task Force, Chicago Police Department, Northeast Wisconsin Tri-County Drug Enforcement Group, and the Manitowoc County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
Margate Resident Sentenced in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce that Louis A. Francois, 44, of Margate, was sentenced today to five years in prison, to be followed by two years of supervised release. The defendant was also ordered to pay restitution of $355,000.
Louis A. Francois previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Francois owned and operated a tax preparation business called A&I Multi Services (A&I) located in Oakland Park. Francois stole personal identifying information (PII) of various individuals, including their names, dates of birth, social security numbers, and addresses, for the purpose of filing fraudulent U.S. income tax returns claiming tax refunds in those individuals’ names. Subsequently, Francois printed out the refund checks payable to the persons whose PII was used at A&I. The checks were in the amount of the fraudulently obtained tax refunds minus Francois’ “tax preparation” fees and other fees. The “tax preparation” fees were deposited into Francois’ bank account. Francois went to a check cashing store located next door to A&I with the fraudulently obtained tax refund checks and fraudulent Florida driver's licenses matching the stolen identities on the checks and cashed them.
From July 2010 through June 2011, the total amount of U.S. Treasury checks cashed by Francois and the total amount of fraudulent refunds requested by Francois is approximately $355,000. The number of victims involved is greater than ten, but fewer than fifty.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Secret Service. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Manhattan U.S. Attorney Settles Civil Rights Lawsuit with Architects of Manhattan Apartment BuildingRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States settled a federal civil rights lawsuit against the architects of 2 Gold Street, a rental apartment building in Lower Manhattan. The lawsuit, which was filed in Manhattan federal court in 2013, alleges that the architect AVINASH K. MALHOTRA and his business, AVINASH K. MALHOTRA ARCHITECTS, designed 2 Gold Street in violation of the accessible design and construction provisions of the federal Fair Housing Act, which require that new multi-family housing complexes include certain features accessible to persons with disabilities. The settlement, which was approved today by U.S. Chief District Judge Loretta A. Preska, requires MALHOTRA and his firm to retain an accessibility expert to review all their ongoing architectural designs for buildings subject to the Fair Housing Act, dedicate $45,000 to compensate people harmed by the inaccessible conditions at 2 Gold Street, and pay a $35,000 civil penalty. Previously, the United States settled with the developers of 2 Gold Street, who agreed to make extensive retrofits at the building, dedicate up to $300,000 to compensate people harmed by the inaccessible conditions at 2 Gold Street, and pay a $35,000 civil penalty.
Manhattan U.S. Attorney Preet Bharara said: “As design professionals, architects have a clear obligation under the Fair Housing Act to ensure that residential buildings are accessible to people with disabilities. When architects disregard that obligation, our Office will use all the legal tools available to us to hold them responsible for such failures and craft remedies to ensure that their designs will be accessible in the future.”
According to the allegations contained in the Complaint and the factual admissions made by MALHOTRA in the consent decree entered by the Court:
2 Gold Street is a 650-unit rental building located in Lower Manhattan. MALHOTRA, the architect of record for 2 Gold Street, provided the architectural drawings and design specifications used by the construction contractors to construct the building. As built, 2 Gold Street had multiple inaccessible features, including insufficient space in bathrooms and kitchens for people in wheelchairs; high thresholds interfering with accessible routes; sinks, ranges, outlets, and mailboxes not fully usable by people in wheelchairs; and protruding objects not detectable by canes used by people with visual impairments.
Inaccessible features at 2 Gold Street were first brought to the attention of the United States by testing performed by the Fair Housing Justice Center. The U.S. Attorney’s Office frequently relies on testers to determine whether property owners are engaging in discrimination on the basis of race, disability, or other protected characteristics, and frequently files lawsuits based on the results of testing.
The consent decree approved today requires AVINASH K. MALHOTRA and AVINASH K. MALHOTRA ARCHITECTS to retain an accessibility expert to review and advise them on each of their new design projects that is subject to the Fair Housing Act, train employees on the requirements of the Fair Housing Act, dedicate $45,000 to compensate people who have been harmed by Fair Housing Act violations at 2 Gold Street, and pay a $35,000 civil penalty to the United States.
Under the consent decree, a person may be entitled to receive monetary compensation if he or she was:
- Discouraged from living at 2 Gold Street because of a lack of accessible features;
- Limited in the full use or enjoyment of an apartment or amenity at 2 Gold Street due to a lack of accessible features;
- Financially affected by having an apartment at 2 Gold Street made more accessible to persons with disabilities;
- Prevented from having visitors because of a lack of accessible features at 2 Gold Street; or
- Otherwise injured by the lack of accessible features or discriminated against on the basis of disability at 2 Gold Street.
People who may be entitled to compensation should file a claim by contacting the Civil Rights Complaint Line at (212) 637-2987 (a TDD line is available at (212) 637-0039), using the Civil Rights Complaint Form available on the U.S. Attorney’s Office’s website, www.usdoj.gov/usao/nys, or sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
Attn: Chief, Civil Rights Unit
86 Chambers Street, 3rd Floor
New York, New York, 10007
This case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Carina H. Schoenberger, Li Yu, Emily E. Daughtry, and Jessica J. Hu are in charge of the case.
U.S. v. 2 Gold LLC, et al. Consent Decree.
Kinder Man Pleads Guilty to Part in Robbery at Coushatta Tribal ReservationRead the Press Release
LAKE CHARLES, La. –United States Attorney Stephanie A. Finley announced today that Chanten Keth L. Gauthreaux, 20, of Kinder, La., pleaded guilty before U.S. District Judge Patricia Minaldi to participating in a home invasion at the Coushatta Tribal Reservation.
According to evidence presented at the guilty plea, the defendant along with John Harold Materne, Trevor James Simon, Floyd H. Martine, and another suspect traveled on December 3, 2013, in a van to the home of an acquaintance located on property belonging to the Coushatta Indian Tribe near Elton, La., in order to steal illegal drugs. Simon drove the vehicle. With Materne carrying a shotgun, he and Martine entered the home. While they were robbing the inhabitants, Gauthreaux entered the trailer and helped take pills and marijuana. The group was arrested while fleeing the scene in the van. Materne and two of the victims are Native American Indians and members of the Coushatta Tribe.
Gauthreaux faces up to 15 years in prison, three years supervised release, and a $250,000 fine for one count of robbery in Indian Country. On Wednesday, June 4, 2014, Materne, 22, of Ragley, La., pleaded guilty to one count of robbery in Indian Country and also pleaded guilty to one count of brandishing a firearm, which carries penalties of seven years to life in prison, five years supervised release, forfeiture, and a $250,000 fine. A sentencing date of September 4, 2014 was set for Materne and September 11, 2014 for Gauthreaux.
Jurisdiction in Indian Country is based upon the unique sovereign relationship between the federal government and Indian tribes. Congress has extended the territorial jurisdiction of the United States to major crimes committed against Native Americans that take place in Indian Country, which includes all property that the government holds in trust or use by officially recognized Native American tribes. The U.S. Attorney’s Office prosecutes all major crimes and misdemeanor cases arising in Indian Country that are within the jurisdiction of this office. The U.S. Attorney’s Office prosecutes cases arising in Indian Country involving felonies where either the defendant or the victim is an Indian or both the defendant and the victim are Indian. The U.S. Attorney’s Office also prosecutes cases involving misdemeanors where the defendant is a non-Indian.
The Coushatta Tribal Police Department, FBI, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Joseph T. Mickel is prosecuting the case.
Justice Department Reaches Settlement with Florida State UniversityRead the Press Release
The Department of Justice announced today that it has reached a settlement with the Florida State University Board of Trustees, acting for and on behalf of Florida State University (FSU), in Tallahassee, Florida. The settlement agreement resolves an investigation and compliance review of the FSU Police Department by the Justice Department under Title I of the Americans with Disabilities Act (ADA) and its implementing regulations. The investigation found that the FSU Police Department’s online application form asked questions about a past or present disability and other medical conditions in violation of the ADA. The ADA does not permit employers to inquire whether an applicant is an individual with a disability or as to the nature of such disability before making a conditional offer of employment.
Under the settlement, FSU agrees to ensure that its hiring policies do not discriminate against any applicant on the basis of disability, including by:
· not conducting any medical examination or making any disability-related inquiry of a job applicant before a conditional offer of employment has been made;
· after making a conditional offer of employment, limiting the scope of medical examinations or disability-related inquiries to what is necessary to either confirm the job applicant’s ability to perform job-related functions, with or without a reasonable accommodation; or whether the applicant poses a direct threat to the health or safety of the applicant or others;
· maintaining the medical or disability-related information of an applicant or employee in separate, confidential medical files;
· training employees who make hiring or personnel decisions within the FSU Police Department on ADA regulations; and
· ensuring that the FSU Police Department website, including its employment opportunities website and its mobile applications, conform to the Web Content Accessibility Guidelines 2.0 Level AA Success Criteria and other Conformance Requirements (WCAG 2.0 AA). The WCAG 2.0 AA is available online .
“This agreement ensures that people with disabilities will have an equal opportunity to compete for jobs in the FSU Police Department,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to knocking down employment barriers for people with disabilities, and we commend the FSU for its cooperation and continuing efforts to improve accessibility for all job applicants.”
People interested in finding out more about the ADA or this agreement can call the department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or visit the ADA website
Jacksonville Man Indicted on Federal Charge of Failure to Register as A Sex OffenderRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Anthony Vincent Burkitt, a/k/a “Vincent Thomas Wolfe,” (44, Jacksonville) has been indicted by a federal grand jury and charged with failing to register as sex offender, after traveling from the state of Maryland. If convicted, Burkitt faces up to 10 years in federal prison. Burkitt has been in custody on related state charges since his arrest on April 13, 2014.
According to the indictment, on or about September 27, 2002, Burkitt was convicted of attempted second degree rape in Baltimore County, Maryland. Subsequent to his conviction, between September 9, 2011 and April 13, 2014, he traveled from Maryland to Florida, where he has since resided. Burkitt allegedly failed to register as a sex offender in Florida, as required by the Sex Offender Registration and Notification Act.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office, the United States Marshals Service, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Inmate Charged with Filing False Income Tax Returns for Fellow PrisonersRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
CINCINNATI -- A federal grand jury here has indicted James Jeremy Savage, 40, originally from Springfield, Ohio, charging him with 29 counts of filing false claims for income tax refunds with the Internal Revenue Service (IRS). Savage was incarcerated in Ohio state correctional facilities in Warren and Madison counties when he allegedly committed the crimes.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati Field Office announced the indictment returned yesterday.
According to the indictment, between April 2007 and April 2011, Savage knowingly filed false claims for income tax refunds with the IRS by preparing and filing false federal income tax returns for other individuals. The intended loss to the IRS due to this fraudulent scheme was approximately $44,675.53
Savage prepared and filed the bogus returns on behalf of other inmates who agreed to pay him in commissary items. The apartment number in the address listed by Savage on many of the returns was allegedly the inmate number for the incarcerated person in whose name the return was filed.
Filing false claims with the IRS is punishable by up to five years in prison and a fine of up to $250,000.“At the IRS, protecting taxpayer money is a matter we take extremely seriously. An integral part of the agency’s mission involves detecting and catching fraudulent tax refund claims," stated Kathy A. Enstrom, Special Agent in Charges, IRS Criminal Investigation, Cincinnati Field Office. "The object of these schemes is to defraud the government and the taxpaying public.”
This case is being prosecuted by Senior Litigation Counsel Anne L. Porter and investigated by special agents of IRS-Criminal Investigation.
Savage is currently in custody in Chillicothe Correctional Institution on unrelated state charges.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Houston Woman Convicted in Alien Smuggling That Resulted in DeathRead the Press Release
CORPUS CHRISTI, Texas – Karin Yamilec Aguilar-Melgor, 22, of Houston, has admitted to smuggling of a group of nine illegal aliens that left one deceased, announced United States Attorney Kenneth Magidson.
According to documents filed of record in the case, on Feb. 25, 2014, at approximately 3:30 a.m., Border Patrol (BP) agents observed individuals getting into a red Ford pickup truck on a Farm to Market Road near Falfurrias. Finding the activity suspicious, BP agents activated their emergency equipment and approached the vehicle. The vehicle then fled the area.
BP agents remained at the scene and apprehended one illegal alien. The pickup truck was located approximately five miles away, which had crashed into a tree on FM 2191 near Falfurrias. At the scene, eight more illegal aliens were discovered as well as Aguilar-Melgor, the driver.
One of the illegal aliens subsequently died due to injuries sustained in the accident.
Aguilar-Melgor was arrested at the scene and has remained in custody since that time.
U.S. District Judge Nelva Gonzales Ramos, who accepted the guilty plea, has set sentencing for Oct. 1, 2014. At that time, Aguilar-Melgor faces up to 20 years in prison and a $250,000 fine.
The case is being investigated by Homeland Security Investigations. Assistant United States Attorney Jeffrey S. Miller is prosecuting.
Hogsett Announces Prosecution of Three in Methamphetamine TraffickingRead the Press Release
Hogsett continues crackdown on illegal drugs and illegal gun possession
EVANSVILLE – Joseph H. Hogsett, the United States Attorney, announced the indictments of three men involved in methamphetamine trafficking. Travis Adams, 32, of Mount Vernon, David Connor, 46, of Boonville, and Joseph Isbell, 31, of Dallas, Texas were indicted on one count each of conspiracy to distribute methamphetamine. Adams was also indicted on one count of possession of a firearm by a convicted felon.
In 2010, a Drug Enforcement Administration (DEA) Task Force agent turned up evidence that Adams, Connor and Isbell were involved in interstate drug trafficking, from Texas to Indiana. Investigations into these men’s activities this year allege that Isbell was a distributor to Adams and Connor. In April 2014, Task Force agents received search warrants and allegedly found over two pounds of meth in their search. Adams and Connor were arrested.
“Going after those who transport drugs into our state and those in our state who wish to make money off of selling illegal substances is an important part of keeping Hoosiers safe,” said Hogsett.
The criminal complaint alleges after arresting Adams and Connor, Connor stated that he and Adams had returned from Missouri on the previous evening after buying methamphetamine from Isbell. Connor advised that Isbell would be making trips to Evansville in the coming days with another two pounds of crystal methamphetamine. Connor agreed to place law enforcement monitored phone calls to Isbell in order to track his movements and plan for his arrest. Once on alert that Isbell would be in town, law enforcement officers were at his planned location in order to take him into custody. Isbell was arrested at Tropicana Casino a few days after Adams and Connor. Isbell later was released on bond from state charges.
At the time of the arrest, Adams was in possession of a firearm. By law, prior felons are banned from owning or possessing firearms. Adams’ felony record is as follows:
• Possession of Precursors, Vanderburgh County, 2001
• Dealing in Methamphetamine, Vanderburgh County, 2002
• Maintaining a Common Nuisance, Vanderburgh County, 2002
• Arson, U.S. District Court, Southern Indiana, 2010
• Conspiracy to Commit Arson, U.S. District Court, Southern Indiana, 2010This prosecution is part of the Violent Crime Initiative (VCI). The United States Attorney’s Violent Crime Initiative began in 2011, and is intended to focus on the “worst of the worst” violent offenders by marshaling federal resources to provide local partners the additional tools they may need to succeed in their effort to promote peace.
A major part of VCI is keeping firearms out of felons’ hands. In 2011, only 14 firearms charges were filed. Since then, over 325 firearms cases have been prosecuted. By charging these cases federally, violent felons must serve 85% of their sentence at a minimum.
“I am proud of the work my office has done to ensure that drugs stay off the streets and guns are possessed only by those who can legally own them,” said Hogsett.
This case was a join investigation with the DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to Lauren Wheatley who is prosecuting this case for the government, each defendant could serve a prison sentence of 10 years to life and up to a fine of $10 million if convicted.
Hogsett Announces Conviction by Jury of Local Businessman on Fraud ChargesRead the Press Release
U.S. Attorney’s Office successfully prosecutes Fishers man who defrauded businesses of hundreds of thousands of dollars
INDIANAPOLIS – Joseph H. Hogsett, the United States Attorney, announced today the conviction of Hrong Arman Gasparian, 67, of Fishers. Gasparian was convicted of 10 counts of wire fraud after a three-day jury trial before U.S. District Judge Sarah Evans Barker.
“Fraud is theft. It takes money out of the hands of hard-working, honest Hoosiers who are just trying to make a living,” said Hogsett.
Gasparian claimed he was a loan broker who could secure funding for businesses and non-profits. He was convicted for his involvement in two fraudulent schemes that swindled prospective borrowers of hundreds of thousands of dollars.
The first scheme involved Bell’s Chapel Church in Indianapolis. Gasparian told members seeking financing to rebuild the church that he would be able to secure them a $3 million grant but would need $365,000 for earnest money and $35,000 non-refundable fee for Gasparian to broker the deal. He told Bell’s Chapel he would put the money in an escrow account, and the refundable portion would be returned upon securing the grant. Gasparian instead spent the $400,000, never securing the grant to Bell’s Chapel and never refunding the earnest money.
In the second scheme Gasparian was convicted of fraudulent behavior which involved two Indianapolis-area businessmen seeking to secure financing for a new construction project. Gasparian assured them he could secure several million dollars in financing for them, but needed $200,000 in earnest money and $25,000 for his brokering fee. Like the members of Bell’s Chapel, the businessmen never received a loan, nor were they returned the refundable earnest money that had given to Gasparian.
“I am proud to say this was a true team effort,” Hogsett said. “Together with the Federal Bureau of Investigation (FBI) and our federal and local law enforcement partners, we worked to prosecute and hold accountable an individual who preyed upon his fellow Hoosiers.”
This case is the result of a collaborative effort by the FBI and the U.S. Attorney’s Office. Investigators with the FBI provided key information in securing Gasparian’s conviction.
According to Assistant U.S. Attorney Winfield D. Ong, who prosecuted the case for the government, Gasparian’s sentence could be up to 20 years in federal prison with fines of up to $250,000 for each of the 10 counts of his conviction. He may also be sentenced to serve multiple years of supervised release. A sentencing date will likely come in the next three months. Until his sentencing, Gasparian is under a court order that restricts him from engaging in financial transactions.
Georgia Woman Sentenced for False Tax ClaimsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Chickamauga, Ga., woman was sentenced in federal court today for making false claims for tax refunds.
Kimberly Johnson, 43, of Chickamauga, Ga., was sentenced by U.S. District Judge Brian C. Wimes to four years in federal prison without parole. The court also ordered Johnson to pay $306,496 in restitution.
On Jan. 13, 2014, Johnson was found guilty at trial of one count of filing false claims for a tax refund. Johnson filed fraudulent tax returns that falsely claimed refunds due to over-withholding of taxes. This claim utilized fictitious 1099-OID tax forms (which are legitimately used to pay taxes on income received from the interest on bond investments).
Johnson was a branch manager for co-defendant Gerald A. Poynter, also known as “Brother Jerry Love,” 48, of Kansas City, Mo. Poynter pleaded guilty on Nov. 7, 2013, to being the leader of a conspiracy to defraud the government that utilized this fraudulent practice. He was sentenced to 13 years in federal prison without parole. Conspirators filed 284 fraudulent returns that claimed a total of $96 million dollars in refunds. The IRS mistakenly paid out $3.5 million on these fraudulent claims. Conspirators from eight states were involved in filing fraudulent tax returns in the largest federal false claims case that has ever been prosecuted in Missouri.
According to court documents, Johnson filed tax returns and amended returns for 37 people. She admitted that this was her sole livelihood at the time, and she benefitted by making tens of thousands of dollars. Despite notice after notice that Poynter and his scheme were frauds, she continued to file tax returns. Many of her low-income clients were fined $10,000 by the IRS for following Johnson’s fraudulent advice. The government believes Johnson’s intended loss was $3,682,647, and her actual loss was $306,496.
Johnson was convicted of filing a claim for a $61,959 refund in April 2009 on behalf of Marian Fine-Kennedy, 36, of Eugene, Ore. In actuality, Fine-Kennedy had not received interest income from the banks and lenders listed on the Forms 1099, nor had any money been over-withheld. Fine-Kennedy has pleaded guilty in a separate but related case.
Poynter and Fine-Kennedy are among 13 defendants who have pleaded guilty. Co-defendant Nkosi Gray, 40, of New Fairfield, Conn., was also convicted at trial and awaits sentencing.
1099-OID Tax Fraud Scheme
Conspirators utilized 1099-Original Issue Discount forms as part of their scheme.
These forms are legitimately used by tax filers who must pay taxes on income they receive from the interest on their bond investments. Tax on certain bonds must be paid as income accrues. Bond holders receive annual forms, called 1099-Original Issue Discount (OID), from the debt issuers.
However, the scheme described in the indictments utilized the 1099-OID forms in a nonsensical manner. Clients of the conspirators assembled financial documents such as mortgage and loan statements, car payments, foreclosure records, bank statements, credit card statements, and other records of debt and spending. Poynter and his staff used this debt information – rather than any actual bond income – to prepare and/or finalize false tax returns and improperly calculated Forms 1099-OID.
These tax returns falsely claimed that the filers had received interest and dividend income and that federal income tax had been withheld. The fraudulent returns claimed the government had over-withheld taxes from the clients’ purported interest and dividend income, making the clients appear entitled to more than $96 million in tax refunds.
In reality, Poynter’s clients had not earned – or paid tax on – such income. No financial institution had issued any 1099-OID forms. Instead, the income that was listed was calculated by what the indictment describes as an “arbitrary and capricious formula.” Conspirators simply added up the taxpayers’ debts and spending and listed those creditors as “payers” of interest and dividends.
OID Fraud Web Site
A Web site has been established to provide information about the status of this investigation. Updates about this investigation and related cases will be posted at www.justice.gov/usao/mow/divisions/OIDfraud.html
This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA).Georgia Man Pleads Guilty to Federal Chargesfor Discharging Waste into Potomac RiverRead the Press Release
Patrick Brightwell, 48, of Bogart, Georgia, pleaded guilty today to federal charges that he orchestrated the discharge of waste into the Potomac River at East Potomac Park from 2009 through 2011, during the same period he managed the company hired by the National Park Service to clean out the storm water sewer system on the National Mall.
The guilty plea was announced by Acting Assistant Attorney General Sam Hirsch of the Justice Department’s Environment and Natural Resources Division; U.S. Attorney for the District of Columbia Ronald C. Machen Jr.; Special Agent in Charge David G. McLeod Jr. of the Environmental Protection Agency’s criminal enforcement program for the Middle Atlantic States; and Acting Chief Robert D. MacLean of the United States Park Police.
Brightwell pleaded guilty in the U.S. District Court for the District of Columbia to one count of violating the Clean Water Act by knowingly discharging a pollutant without a permit and one count of presenting false claims to the United States. The Honorable James E. Boasberg scheduled sentencing for September 3, 2014. Under federal sentencing guidelines, Brightwell faces a likely range of 46 to 57 months in prison and a fine of up to $75,000. Brightwell also has agreed to pay $270,667 in restitution to the National Park Service, representing the losses for the work that was not properly performed. He also must pay a forfeiture money judgment totaling $230,899.
An eight-count indictment of Brightwell was unsealed following his arrest in Georgia on Dec. 5, 2013. The remaining charges will be dismissed as part of the guilty plea.
“While he was supposed to be helping to keep the National Mall – a treasure of our national park system – clean and free of trash, Brightwell was actually directing the dumping of debris and wastewater into the Potomac River,” said Acting Assistant Attorney General Hirsch. “He now faces a stiff penalty for his callous and egregious violation of the Clean Water Act.”
“Patrick Brightwell harmed the U.S. taxpayer and our nation’s capital by directing his workers to dump waste in the Potomac River,” said U.S. Attorney Machen. “Instead of fulfilling a contract to take waste from the National Mall to a disposal facility, Brightwell polluted our water by telling his employees to cut corners regardless of the damage to our environment. The prison time that Brightwell now faces is an indication of how serious we are about enforcing the Clean Water Act.”
“The defendant dumped untreated wastewater and debris into one of our nation’s most treasured rivers, the Potomac,” said Special Agent in Charge McLeod. “Businesses and their contractors who flout the nation's environmental laws will be held accountable. EPA and its partner agencies are committed to vigorously working together to protect the public from this type of illegal and dangerous action.”
“The guilty pleas in this case shall serve as a reminder that environmental crimes will not be tolerated by the National Park Service, law enforcement, the criminal justice system, and the community," said Acting Chief MacLean. “I applaud the collaborative efforts of every agency involved as a testament to the inherent dedication to protecting our nation's natural resources.”
According to a statement of offense signed by the government and defendant, from in or about 2007 through 2011, Brightwell was a manager of a company that had a contract with the National Park Service to clean the storm water sewer system on the National Mall. The contract required that waste removed from the Mall’s storm drains and oil-water separators be disposed of at a proper disposal facility in compliance with District of Columbia regulations and federal law.
Brightwell hired employees and subcontractors to perform work under the contract and oversaw their work from 2008 to 2011. To clean the structures, Brightwell and his company used a vacuum truck, a vehicle designed to gather, store, and transport such waste. When the storage compartment in the vacuum truck became full, workers would have to discharge waste from the truck prior to continuing the cleaning.
In 2009, 2010 and 2011, according to the statement of offense, Brightwell directed his employees and subcontractors to discharge waste from the vacuum truck at a storm drain near a parking lot in East Potomac Park, across Ohio Drive from the Potomac River. Brightwell concealed these discharges from the National Park Service and police. Workers also discharged waste at a manhole near Fort McNair in the District of Columbia.
During this period, Brightwell continued to invoice the National Park Service for cleaning services, but concealed and did not disclose that the waste was not being properly disposed, as required by the contract. From 2009 through 2011, Brightwell’s company received approximately $406,000 in payments from the National Park Service related to the contract.
According to the statement of offense, the employees and subcontractors illegally dumped waste at the parking lot approximately two-thirds of the time, and dumped the waste at a proper disposal facility in Fort Washington, Maryland, about one-third of the time.
The subcontractor, B&P Environmental LLC, and a B&P employee working on June 6, 2011, both pleaded guilty in November 2014 to violations of the Clean Water Act before the U.S. District Court. As part of their pleas, both the company and employee agreed to cooperate with the government’s investigation. Both the company and employee are awaiting sentencing.
The case was investigated by Special Agent S. Christopher Michael of the EPA and Detective Jon Crichfield of the U.S. Park Police and supported by Environmental Protection Specialists Jerry Crutchley and Justin Young. It is being prosecuted by Senior Trial Attorney Lana Pettus of the Department of Justice’s Environmental Crimes Section and Assistant U.S. Attorney Jonathan P. Hooks of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Paralegal Specialist Ashleigh Nye of DOJ’s Environmental Crimes Section and Paralegal Specialists Krishawn Graham and Donna Galindo of the U.S. Attorney’s Office.