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Thursday 1 May 2014
Local In-Home Healthcare Provider Pleads Guilty to Fraud ChargesRead the Press Release
St. Louis, MO – TINA KUEHL pled guilty yesterday to bank fraud charges involving her fraudulent statements involving payment of a bank loan. In a separate unrelated case, she and her company, Better Way Home Care, pled guilty to multiple healthcare fraud charges. Kuehl and Better Way represented on billing work sheets and claim forms that patients had received therapy services when they knew that the patients had not received the therapy. Kuehl and Better Way caused the submission of hundreds of reimbursement claims to Medicare for services which they knew had not been provided.
According to court documents regarding the bank fraud charges, in December 2010 Kuehl’s mother obtained a $305,000 property loan from the Community Bank of Owensville, MO, a branch of the Maries County Bank. Both Kuehl and her mother are listed on the deed of trust for the property. On many occasions, they did not make timely payments on the loan and in July 2013, Maries Bank foreclosed on the property. After the foreclosure, Kuehl devised a scheme to defraud Maries Bank by submitting fraudulent checks as proof that she had made loan payments to the bank. On six occasions, she changed the payee on copies of unrelated cancelled checks so that it would appear that she had made loan payments to Community Bank of Owensville. She continued the fraud by claiming to have made cash payments to a bank employee on two occasions. The bank employee was on sick leave on the day Kuehl claimed she made the first $4,000 cash payment to the employee at the bank. Kuehl claimed that she made a second cash payment of $6,900 to a bank employee at a truck stop. Finally, Kuehl retained attorneys to represent her after the foreclosure, and falsely told them she had made payments by checks and cash, which the bank had not credited to her loan account.According to court documents regarding the healthcare fraud charges, Better Way was a home health care agency located in Ellisville, Missouri. Tina Kuehl was the owner, president and administrator of Better Way and was responsible for the day-to-day operations. Medicare pays home health agencies for 60-day episodes of care. Medicare makes two payments to the home health care agencies, the first before the service is provided based on the patient’s anticipated need for services and a second payment at the end of the 60-day episode of care based on the actual number of services provided.
Kuehl has no medical or health care education, training or experience, which would qualify her to assess or evaluate patients or determine their care needs. Prior to opening Better Way, she worked in the cosmetology field. Better Way hired nurses and contracted with therapists to assess and evaluate patients and to determine the patients’ needs for therapy services. Better Way staff recorded this information on the Outcome and Assessment Information Set form (OASIS).To increase the reimbursement that Better Way would receive, Kuehl directed Better Way nurses and other employees to make false statements on the OASIS forms and the reimbursement claim forms. At Kuehl’s direction, the staff increased the number of therapy visits, although Kuehl knew the patients did not need and had not received the therapy; falsified the diagnosis codes; and exaggerated the patients’ conditions and the reasons the patients were receiving home health care services from Better Way. When some employees refused to increase the number of therapy visits, Kuehl personally increased the number of visits. In some instances the patient had received no therapy at all.
Kuehl, Ballwin, Missouri, pled guilty to one felony count of bank fraud, one felony count of healthcare fraud, two counts of making false statements relating to healthcare and one count of making false statements to federal agents. She appeared before United States District Judge Henry Autrey on Wednesday, April 30. Sentencing has been set for July 28, 2014.Bank fraud carries a maximum penalty of 30 years in prison and/or fines up to $1 million; healthcare fraud carries a maximum penalty of ten years prison and/or fines up to $250,000; and each of the other charges carry a maximum of five years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services, the FBI, and the Missouri Fraud Control Unit of the Missouri Attorney General’s Office. Assistant United States Attorney Dorothy McMurtry is handling the case for the U.S. Attorney's Office.
Justice Department Requires eBay to End Anticompetitive <br /> “No Poach” Hiring AgreementsRead the Press Release
The Department of Justice announced today that it has reached a settlement with eBay Inc. that prevents the company from entering into or maintaining agreements with other companies restraining employee recruitment and hiring.
The department’s Antitrust Division filed the proposed settlement in the U.S. District Court for the Northern District of California in San Jose. If approved by the court, the settlement would resolve the department’s competitive concerns and the original lawsuit filed on Nov. 16, 2012.
In its lawsuit, the department alleged that senior executives and directors of eBay and Intuit entered into an agreement, beginning no later than 2006, that prevented each firm from recruiting employees from the other and that prohibited eBay from hiring Intuit employees that approached eBay.In the high technology sector, employees with advanced or specialized skills are highly valued and sought after. Companies often heavily recruit and hire experienced and capable employees of other technology firms, offering significantly better job opportunities or pay. The agreement between eBay and Intuit diminished important competition between the firms to attract highly skilled technical and other employees to the detriment of affected employees who had less access to better job opportunities and higher pay.
“eBay’s agreement with Intuit served no purpose but to limit competition between the two firms for employees, distorting the labor market and causing employees to lose opportunities for better jobs and higher pay,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The proposed settlement resolves the department’s antitrust concerns and ensures that eBay will not engage in similar conduct in the future.”Previously, in denying eBay’s motion to dismiss the case, the district court found that the agreement alleged by the department, if proven, would constitute a naked horizontal market allocation agreement that was manifestly anticompetitive and lacking in any redeeming virtue, and thus could be found per se unlawful.
The proposed settlement would prohibit eBay from entering or maintaining anticompetitive agreements relating to employee hiring and retention for five years. It would broadly prohibit eBay from entering, maintaining or enforcing any agreement that in any way prevents any person from soliciting, cold calling, recruiting, hiring or otherwise competing for employees. eBay will also implement compliance measures tailored to these practices. Intuit is already subject to a similar consent decree, and for that reason was not a defendant in this case.
Today, the California Attorney General’s Office also filed a settlement in its related case, The People of the State of California v. eBay Inc., based on the same facts alleged in the department’s complaint.
This case and the proposed settlement arose out of a series of Antitrust Division investigations into employee recruitment practices at a number of high tech companies. In September 2010, the Antitrust Division filed a civil antitrust lawsuit against six high tech firms– Adobe Systems Inc., Apple Inc., Google Inc., Intel Corporation, Intuit Inc. and Pixar–for antitrust violations arising from “no cold call” agreements. In December 2010, the Antitrust Division filed a civil antitrust lawsuit against Lucasfilm Ltd. alleging antitrust violations involving similar activities restraining competition for employees. In both cases, settlements were filed at the same time the lawsuits were filed resolving the department’s competitive concerns. Today’s proposed settlement with eBay is substantially the same as the court-approved settlements in the two prior cases.eBay Inc. is a Delaware corporation with its principal place of business in San Jose, Calif.
The proposed settlement, along with the department’s competitive impact statement, will be published in The Federal Register, as required by the Antitrust Procedures and Penalties Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to James J. Tierney, Chief, Networks & Technology Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 7100, Washington D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.
Jerseyville Woman Charged for Threatening to Destroy Calhoun County High SchoolRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Michelle Lynn Smith, 36, of Jerseyville, Illinois, was charged by way of a criminal complaint for conveying a false threat.
On April 28, 2014, authorities responded to a potential bomb threat at the Calhoun County High School in Hardin. The response was prompted by the discovery of a computer-generated note in the ladies’ washroom. The note read as follows:
This school is going down today. KABOOM!!!!!!!!!!!!!! Im tired of all the people here. Everyone is going down, the school will b n flames. It is so stupid here. I cant take it ne more. The teachers suck and don’t do ne thing to help u. All that matters is what ur name is. If I had certain names I would not have the truble I do. Don’t matter, this place sucks and will not be here for long. So long and GOOD-BYE!!!!!!!!!
Authorities immediately evacuated the school and notified the parents of the students. The Secretary of State Police Bomb Squad and Capitol Police K-9s conducted a search of the building, but no explosives were located. Following these events, law enforcement found evidence and conducted interviews which lead to the criminal charges against Smith, a teacher at the high school.
The charge of Conveying a False Threat carries maximum penalties of five years of imprisonment, three years of supervised release, and a $250,000 fine.
“Actions such as these cause not only massive wastes of law enforcement resources, but strike fear into the hearts of parents and students alike. Because children should feel safe in their schools, we take these charges very seriously.” noted United States Attorney Wigginton.
Smith is being held in federal custody, without bond, pending a detention hearing set on Monday, May 5, 2014, at 11:00 am, in United States District Court in East St. Louis.
A criminal complaint is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
The case was investigated by the Illinois State Police, with the assistance of the Calhoun County State’s Attorney, Calhoun County Sheriff’s Department, Jersey County Sheriff’s Department, the Jerseyville Police Department, the Illinois Secretary of State Police Bomb Squad and Capitol Police K-9s, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan and Special Assistant U.S. Attorney Michael Hallock.
Jacksonville Man Sentenced to 24 Years for Sex Trafficking by Force, Fraud or CoercionRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis yesterday sentenced Narada Randolph (32) to 24 years in federal prison for sex trafficking by force, fraud or coercion. Randolph was indicted on June 27, 2012. He pleaded guilty in November 2013.
According to court documents, from late 2007 through the middle of 2011, Randolph forced, by means of physical violence, four women to engage in the commercial sex trafficking industry. In addition, from July 2008 through March 2010, Randolph transported two of these women from Florida to Washington, D.C., Indiana and Georgia, with the intent of forcing them to engage in commercial sex acts.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Malisa Chokshi.
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Income Tax Evader Sentenced to 15 Months in PrisonRead the Press Release
PITTSBURGH - A resident of Clarksburg, West Virginia, has been sentenced in federal court to 15 months in prison, to be followed by three years of supervised release, on his conviction of income tax evasion, United States Attorney David J. Hickton announced today.
United States District Judge David S. Cercone imposed the sentence on James R. Corbitt.
According to information presented to the court, during the tax years 2005 through 2009, Corbitt, an employee of Nexus Medical Services located in Westmoreland County, evaded income tax by diverting cash and checks payable to Nexus to himself, and by having Nexus pay for his personal expenses, including $77,000 for an apartment in Greensburg, $101,000 for personal cars and a motorcycle, and such items as his utilities, cable bill, and lawn and maid service. For the year 2008, the year to which he pleaded guilty, Corbitt reported income of $11,000 and tax due of $1,103, while his actual income was $167,079, upon which tax was due and owing of $29,564. The total amount of tax loss is $102,102, which does not include interest or penalties.
Corbitt was convicted in federal court in Ohio in 1993 of theft of government funds and filing a false tax return. He was sentenced to an 18-month term of incarceration on that occasion.
Prior to imposing sentence, Judge Cercone stated that the sentence “is important to deter others from cheating on their taxes.”
Assistant United States Attorney Stephen R. Kaufman prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation, for the investigation leading to the successful prosecution of Corbitt.
Idaho Prisoner Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
Engaged in Sexual Chats with Teenage Girls via Social Media Websites
BOISE - Jacob Eldon Hobart, 26, of Boise, Idaho, pleaded guilty in U.S. District Court today to Possession of Sexually Explicit Images of Minors, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, the case originated in December 2012 when the Idaho Internet Crimes against Children Task Force received a report from the National Center for Missing and Exploited Children. According to that report, a social networking site had observed a user with the screen/user name of Jacob Hobart (Jacob H) presenting himself on their site as 15 years of age; however, company personnel had observed a chat conversation in which Hobart stated he was actually 25 years of age. The social networking site further reported that Hobart had communicated with a female who identified herself as being 15 years of age.
Boise Police Detectives investigated, and found hundreds of emails in Hobart’s Yahoo email from the social media site, and including emails in which Hobart had requested to be friends with dozens of teenage females, ranging in age from 13 to 19 years of age based on the ages stated in their profile. One of those girls was a 14-year-old girl from Washington State with whom Hobart exchanged sexually explicit photos. Another victim, the one who had held herself out on the social networking site as being 15, was actually a local 12-year-old middle school student, to whom Hobart had sent obscene photographs.
The charge of Possession of Sexually Explicit Images of Minors is punishable by up to 10 years in prison, a maximum fine of $250,000.00, and from 5 years up to lifetime-supervised release.
Sentencing is set for July 22, 2014, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
Hobart is currently incarcerated in the Idaho Department of Corrections, serving a term of two years fixed followed by eight years indeterminate, for an unrelated charge of sexual battery involving Lewd or Lascivious Acts on a Minor Child 16 to 17 years of age.
The case was investigated by the Boise Police Department, which is a member of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Hill City Man Sentenced for Possession with Intent to Distribute Marijuana and Possession of A Stolen FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Hill City, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance and Possession of a Stolen Firearm was sentenced on April 21, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Levi Allen Thompson, age 32, was sentenced to 37 months in custody, 3 years of supervised release, and a $200 special assessment to the Federal Crime Victims Fund.
Thompson was indicted for Possession with Intent to Distribute a Controlled Substance and Possession of a Stolen Firearm by a federal grand jury on July 23, 2013. He pled guilty on December 20, 2013.
On December 13, 2012, a safe containing marijuana and that belonged to the defendant was seized in Pennington County, South Dakota. Thompson was aware that the safe contained 158 grams of marijuana, and he intended to distribute at least part of that amount. In addition, between November 2012 and December 2012, Thompson possessed a Ruger .357 revolver that he knew had been stolen.
This case was investigated by the South Dakota Division of Criminal Investigation and the Rapid City Police Department. Assistant U.S. Attorney Ted L. McBride prosecuted the case.
Thompson was immediately turned over to the custody of the U.S. Marshals Service.
Hebron Man Who Filed False Tax Returns Is SentencedRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ALAN MISKUNAS, 52, of Hebron, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to three years of probation for filing false tax returns. MISKUNAS also was ordered to perform 100 hours of community service.
According to court documents and statements made in court, MISKUNAS formerly owned Bolton Flooring Center in Bolton. During the 2003 and 2004 tax years, MISKUNAS filed income tax returns with the Internal Revenue Service that under-reported Bolton Flooring Center’s gross business receipts by approximately one-half, resulting in his failure to pay more than $64,000 in personal income taxes due on that unreported income. MISKUNAS also did not file tax returns for the 2005 and 2006 tax years and failed to pay more than $88,000 in taxes owed for those years.
MISKUNAS is required to pay $152,417 in back taxes, plus applicable interest and penalties.
On February 6, 2013, MISKUNAS pleaded guilty to one count of filing a false tax return.
This matter was investigated by the Internal Revenue Service – Criminal Investigation Division and was prosecuted by Assistant U.S. Attorney Henry K. Kopel.
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[email protected]Havre Psychologist Pleads Guilty to Bribery and Tax FraudRead the Press Release
The United States Attorney's Office announced that Dr. James Howard Eastlick, Jr., the former Clinical Psychologist at the Rocky Boy Health Clinic, entered pleas today in three of four indictments handed down by the Grand Jury charging him with public corruption and tax fraud. Eastlick appeared before U.S. District Judge Brian Morris in Great Falls to enter the guilty pleas.
BRIBERY OF TONY BELCOURT
Eastlick pled guilty to bribery in giving $100,000 to Tony Belcourt in November of 2009 from a company in which he controlled a 49% interest-Hunter Burns Construction. United States v. Belcourt, et al, CR-13-82-GF-BMM. The payment was characterized as a "loan" but was not paid back until 2013 when Belcourt and Eastlick became the subjects of a federal corruption investigation. Belcourt had awarded Hunter Burns Construction several construction contracts from federal funds provided to the Chippewa Cree Tribe and its corporation, the Chippewa Cree Construction Corporation, of which Belcourt was the Chief Executive Officer and Contracting Officer. Belcourt had sold cattle out of trust meaning without the knowledge and consent of the Independence Bank who held a lien against the cattle to collateralize the loans made to Belcourt and his wife. When the Bank discovered the conversion, it demanded payment of $107,000 from the auction company who had sold the cattle on Belcourt's behalf, and the auction company, in turn, demanded payment from the Belcourts.
Tony Belcourt approved and authorized a Chippewa Cree Construction Corporation payment to Hunter Burns Construction on November 21, 2009, in the amount of $148,972. Two days later, on November 23, 2009, Hunter Burns Construction issued a $100,000 check to Hailey Belcourt. Hunter Burns Construction did not have the funds to make the payment to Belcourt until the federal construction funds were deposited from the Chippewa Cree Construction Corporation. The company recorded the payment as a personal loan to Hailey Belcourt who then used the money to re-pay the livestock auction company by wire transfer of $107,153.09 on November 27, 2009. Four months later, in March of 2010, Hunter Burns Construction received a $1.7 million contract from Belcourt.
Additional details can be found in the government's extensive Offer of Proof filed with the Court with that case number and accessible through PACER.
BRIBERY OF TRIBAL COUNCILMAN A
Eastlick also pled guilty to bribery in United States v. Eastlick, CR-14-33-GF-BMM which alleged that between July 28, 2009 through November 30, 2011, Eastlick and Hunter Burns Construction made $258,000 in bribe payments to a tribal councilman of the Chippewa Cree Tribal Business Committee identified in the indictment only as Tribal Councilman A. The government told the Court that Tribal Councilman A served on the Board of Directors for the Chippewa Cree Construction Corporation and the Rocky Boy's Health Care Board.
Prosecutors told the Court in an Offer of Proof that the investigation revealed that many of the transactions were not legitimate. For example, equipment purportedly sold to Hunter Burns Construction would continue to appear on Tribal Councilman A's inventory of equipment for bank loans and credit long after it was allegedly sold. One transaction was for the potential and prospective lease of property over ten years-paid in full up front-when the land was never used for any purpose by the construction company. Another payment was related to the disposal of hazardous waste which could not have been a legitimate transaction due to the regulatory requirements for the disposal of such material that Tribal Councilman A could not legally perform. Eastlick admitted that the payments were to maintain the favor of Tribal Councilman A and to keep federal contracts flowing to Hunter Burns Construction.
Additional details can be found in the government's Offer of Proof filed with the Court with that cause number and accessible through PACER.
FILING FALSE TAX RETURNS
In United States v. Eastlick, CR-14-32-GF-BMM, Eastlick pled guilty to one count of a four count indictment charging him with filing a false tax return. During the years covered by the indictment (2008-2011), Eastlick was a Clinical Psychologist for the Rocky Boy Health Clinic on the Rocky Boy's Indian Reservation. During this same period, Eastlick operated a loan program-called the JE Loan Program-with the Chippewa Cree Tribe wherein he loaned money both to the Tribe in large amounts and, as a "pay-day" lender to individual tribal employees in smaller amounts. The loans Eastlick made for the tribe generally included interest rates of l0o/o, and were paid back within l0 weeks of Eastlick loaning the money. The annualized percentage rate (APR) for loans from the JE Loan program would constitute a 70% to 80% return. Short-term loans to individual tribal members also came with high annualized rates of interest.
In its Offer of Proof, the U.S. Attorney's Office indicated that it would prove that a significant amount of interest was never declared by Eastlick on his federal income tax returns. The government alleges that Eastlick underpaid his taxes by over $66,000 during the four year period of the indictment.
Additional details can be found in the government's Offer of Proof filed with the Court and accessible through PACER.
Eastlick's sentencing on the three felonies is set for August 15, 2014, in Great Falls.
The case was brought by the federal agents of the Guardians Project and was investigated by the Inspectors General of the Departments of Interior and Health and Human Services, and for the Environmental Protection Agency, as well as by the Internal Revenue Service Criminal Investigation Division and the FBI.
Georgia Man Sentenced to 51 Months in Bank Fraud and Identity Theft SchemeRead the Press Release
RICHMOND, Va. – Jacquis Depree Nelson, 32, of Atlanta, Georgia, was sentenced today to 51 months in prison, followed by 5 years of supervised release, for conspiracy to commit bank fraud and aggravated identity theft. Nelson was also ordered to pay restitution in the amount of $261,552.00 to Wells Fargo Bank.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and William G. Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after sentencing by Senior United States District Judge Robert E. Payne.
Nelson pleaded guilty on February 3, 2014. According to court documents, he participated in a conspiracy involving the unauthorized withdrawal of over $260,000 from accounts held at Wells Fargo Bank. Members of the conspiracy created false forms of identification for several real Wells Fargo accountholders, using personal identifying information obtained without lawful authority. Nelson and his co-conspirators traveled from Georgia and other locations to bank branches in Virginia and South Carolina, where they posed as the individual accountholders. Using customer account information and the false forms of identification, Nelson and his co-conspirators withdrew the funds from numerous Wells Fargo accounts between November 2012 and January 2013. The co-conspirators divided the stolen proceeds among themselves following the withdrawals.
Nelson’s co-conspirator, Anthony Romey Carter, of Elk Grove, California, previously pleaded guilty and was sentenced on August 8, 2013, to 61 months’ imprisonment for his role in the scheme.
This case was investigated by the United States Secret Service. Assistant United States Attorneys Dominick S. Gerace and Michael Gill prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Four Indicted in Conspiracy to Bribe Post Office ManagersRead the Press Release
Station Managers Allegedly Submitted Fraudulent and Inflated Invoices for Landscaping and Cleaning Services in Exchange for Bribe Payments
Baltimore, Maryland - A federal grand jury has indicted Richard Louis Wright III, age 46; Kimberly A. Parnell, age 43; Shane Anderson, age 37, all of Baltimore; and Ladena D. Sketers-Anderson, age 47, of Randallstown, Maryland, on charges related to a bribery conspiracy to obtain contracts with the U.S. Postal Service. The indictment was returned on April 30, 2014.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Paul Bowman of the U.S. Postal Service Office of Inspector General; and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
“The indictment alleges that two post office station managers accepted bribes in return for contracts for landscaping, snow removal, and cleaning services,” said U.S. Attorney Rod J. Rosenstein. “Officials who exercise governmental authority are obligated to use it for the public good and not to advance their own financial interests.”
Beginning in January 2007, Wright was the United States Postal Service (USPS) Station Manager of the Waverly Station in Baltimore, and beginning in July 2010, Parnell was the USPS Station Manager of the Pikesville Station in Pikesville, Maryland. As part of their official duties as USPS Station Managers, Wright and Parnell had the authority to contract for landscaping, snow removal, and certain cleaning services at the Post Offices they managed, and to submit invoices for those services to USPS for payment. According to the indictment, Wright and Parnell knew one another professionally and personally and consulted with one another on the operations of their respective stations, including referring contractors to one another.
The 29-count indictment alleges that beginning in October 2007 and continuing until approximately October 2013, Wright and Parnell engaged in a scheme to commit bribery, wire fraud and mail fraud by creating, approving and submitting false and inflated invoices for maintenance work allegedly performed at their respective Post Offices by Anderson, Sketers and others, and then splitting the proceeds with the alleged providers of the services.
According to the indictment, in the Spring of 2013, when one of their co-conspirators failed to make timely bribe payments to Wright and Parnell, Parnell proposed that they replace the co-conspirator with Shane Anderson, who operated a landscaping company in Baltimore called Youthful Minds Lawn Care, and whom they believed would make bribe payments to them in exchange for USPS contracts. Thereafter, Parnell, Wright and Anderson agreed that Parnell and Wright would submit false and inflated invoices from Youthful Minds Lawn Care for landscaping services in exchange for a percentage of the proceeds paid to Youthful Minds by the USPS.
Ladena Delore Sketers-Anderson (aka Ladena Sketers) operated a cleaning company called Keep U Clean Janitorial Services, LLC in Randallstown, Maryland. Wright and Sketers had been business partners in a janitorial services company before Sketers went into business as Keep U Clean. Wright used Sketers’ company for cleaning services at the Waverly Station and recommended Keep U Clean to Parnell at the Pikesville Station. The indictment alleges that Wright submitted false and inflated invoices from Keep U Clean in exchange for Sketers paying him a percentage of the funds she received from the USPS. Later, Wright began submitting Keep U Clean invoices to the USPS for cleaning work done by employees at his direction at the Waverly Station, even though he had been directly instructed not to perform contract work at the station he managed. According to the indictment, Wright also proposed to Parnell that Keep U Clean employees under his direction perform cleaning services at the Pikesville Station in exchange for a bribe payment to Parnell and Parnell agreed to that arrangement.
Finally, the indictment seeks forfeiture of any proceeds obtained directly or indirectly, as the result of the scheme, including: $591,791 for Wright; $50,470 for Parnell; $30,455 for Anderson; and $109,976 for Sketers-Anderson.
The defendants face a maximum sentence of five years in prison for the conspiracy and 15 years in prison for each count of bribery. No court appearances have been scheduled for the defendants.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The National Procurement Fraud Task Force was formed in October 2006 to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force includes the United States Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as other cases brought by members of the Task Force, demonstrates the Department of Justice’s commitment to helping ensure the integrity of the government procurement process.
United States Attorney Rod J. Rosenstein praised the USPS – Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Fort Thompson Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 28, 2014, by U.S. District Judge Roberto A. Lange.
Stuart Dion, age 30, was sentenced to 15 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Dion was indicted by a federal grand jury on November 14, 2013. He pled guilty on February 3, 2014.
The conviction stems from Dion failing to register as a sex offender between September 17, 2013, and October 21, 2013. Dion was previously convicted of a sex offense in federal court and is required by federal law to register as a sex offender for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Dion was immediately turned over to the custody of the U.S. Marshals Service.
Fort Lauderdale Attorney Sentenced in Connection with Scott Rothstein's Ponzi SchemeRead 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 George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Douglas L. Bates, 55, of Parkland, was sentenced by U.S. District Donald M. Middlebrooks to 60 months in prison, two years of supervised release, and a $20,000 fine.
Bates previously pled guilty to a Superseding Information charging him with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371.
The acts set forth in the charging document were all in furtherance of a “Ponzi” scheme involving the sale of purported confidential settlement agreements in sexual harassment and/or whistle blower cases which were purportedly handled by attorneys at the former Ft. Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
According to the factual stipulation filed in support of the guilty plea, while Bates was a partner in the Law Offices of Koppel and Bates located at 817 South University Drive, Suite 100, Plantation, Florida, he assisted Scott W. Rothstein in defrauding certain clients of RRA by drafting false and fraudulent opinion letters claiming to represent an investment group which had a business plan to invest in the confidential settlements which formed the basis for the Ponzi scheme when, in fact, he did not, and claiming that he represented a plaintiff who had entered into one of the confidential settlement agreements when, in fact, he did not. The Superseding Information further alleges that Bates assisted Rothstein by arranging to have representatives of an investment group falsely informed that numerous legal cases were referred by Koppel & Bates to RRA when, in fact, they were not.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, Jeffrey N. Kaplan and Evelyn B. Sheehan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Unisys Engineer and Girlfriend Admit Receiving Nearly $100,000 in Kickbacks in Connection with TSA High-Tech Phone ContractRead the Press Release
Third Defendant, Former President of Vonetex LLC, Will be Sentenced for Paying Kickbacks
TRENTON, N.J. - A former project manager for Unisys and his girlfriend today admitted they were paid nearly $100,000 in kickbacks in connection with staffing a Transportation Security Administration (TSA) contract for high-tech phone systems, U.S. Attorney Paul J. Fishman announced.
James Anderson, 55, and Vickie Idoux-Walz, 48, both of Gainesville, Ga., pleaded guilty today before U.S. District Judge Michael A. Shipp to separate informations charging them with conspiracy to solicit and accept kickbacks in connection with a government contract. Neil Metzger, 41, of Leesburg, Va., was the president of Vonetex LLC, and has already pleaded guilty. He will be sentenced tomorrow.According to documents filed in this case and statements made in court:
Vonetex is a technical services and training company. Unisys, a government contractor, won a contract from the U.S. Department of Homeland Security that included the installation and servicing of high-tech phone services for the TSA. Vonetex was awarded a subcontract through an intermediary company, Izar Associates Inc.
Vonetex was paid, through Izar, for each hour that its employees and contractors billed under the contract. Anderson was an engineer and a project manager at Unisys who supervised the contracted work. Idoux-Walz was in a romantic relationship with Anderson, but was not an employee of Vonetex, Unisys, or Izar.
Anderson admitted that in November 2008, he agreed with Metzger to accept kickback payments, paid through Idoux-Walz, that were equal to $5 or $10 per hour that each Vonetex employee and contractor billed to the contract.
Idoux-Walz admitted that in December 2008 she and Metzger entered into a written agreement in which Vonetex would pay Idoux-Walz a fee for consulting services. The agreement also stated that for each hour billed by a Vonetex resource at Unisys, Idoux-Walz was to be given credits which could be used for discounts on additional work or equipment, or redeemed for cash. Each month, Idoux-Walz sent Metzger an invoice based on hours billed by Vonetex employees and contractors, and Metzger periodically sent kickback checks to Idoux-Walz with the understanding that the money represented the kickback payments Metzger had agreed to pay Anderson.
Anderson and Idoux-Walz together received a total of $97,850 in kickbacks from Metzger.
The count of conspiracy to accept kickbacks in connection with a government contract to which Anderson and Idoux-Walz pleaded guilty carries a maximum potential penalty of five years in prison and a $250,000 fine.
Metzger pleaded guilty on Jan. 14, 2014, to conspiring to pay kickbacks in connection with a government contract. Metzger also admitted that he made false claims against the government in the form of overbilling in June and July 2010, which resulted in a loss to the government of approximately $100,000. Metzger has entered a plea agreement with the government in which all parties agreed to a sentence of 15 months in prison. He is scheduled to be sentenced tomorrow before Judge Shipp in Trenton.
U.S. Attorney Fishman credited special agents of the U.S. Department of Homeland Security, Office of Inspector General, under the direction of Special Agent in Charge Gregory K. Null, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office in Trenton.
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Defense counsel:James Anderson: Andrea Bergman Esq., Trenton, N.J.
Vickie Idoux-Walz: Joshua Markowitz Esq., Lawrenceville, N.J.
Neil Metzger: Michael Sullivan Esq., Morristown, N.J., and Danny Onorato Esq., Washington, D.C.Anderson, James Information
Idoux-Walz, Vickie InformationFormer Kern County Resident Charged with Stealing Social Security BenefitsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Rosaura M. Tinajero, 56, of Omaha, Neb., and formerly of Wasco, Calif., charging her with theft of public money and two counts of wire fraud, United States Attorney Benjamin B. Wagner announced.
According to court documents, Tinajero’s mother, a Social Security benefits recipient, died in 1987. The Social Security Administration was not notified of her death and distribution of benefits continued from June 1987 through June 2009. From March 1995 through June 2009, Tinajero obtained more than $120,000 in benefits meant for her deceased mother via check and direct deposit, and personally used the money with knowledge that she was not entitled to the benefits.
This case is the product of an investigation by the Social Security Administration, Office of Inspector General and the United States Secret Service. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
Tinajero is scheduled to be arraigned on Monday, June 9, 2014, at 1:30 p.m.
If convicted, Tinajero faces a maximum statutory penalty for theft of public money of 10 years in prison and a $250,000 fine. Wire fraud carries a maximum statutory penalty of 20 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.
Former Elizabeth, N.J., School Attendance Officer Admits Defrauding Board of EducationRead the Press Release
NEWARK, N.J. – A former attendance liaison officer for the Elizabeth, N.J., Board of Education (EBOE) today admitted obtaining by fraud more than $5,000 by working a second job during hours when he was supposed to be tracking down truant students, U.S. Attorney Paul J. Fishman announced.
Scott J. Farley, 45, of Cranford, N.J., pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him embezzling and converting to his own use more than $5,000 of money in the control and custody of the EBOE.
According to documents filed in this case and statements made in court:
Farley worked for the EBOE at an annual salary of $40,499 and $42,825 for school years 2009-2010 and 2010-2011, respectively. As an attendance liaison officer, he was expected to perform his duties during the school day, which lasted from approximately 8:15 a.m. to 3:00 p.m., by conducting home visits relating to excessive school absences by students. During this time, Farley worked in the shipping and receiving department of a private corporation based in Mountainside, N.J.
Time sheets from the corporation revealed Farley worked there during many hours when he was supposed to be working as a truant officer. Farley admitted working at the corporation during school hours on at least 100 days for both school years 2009-2010 and 2010-2011. He also admitted that during school year 2009-2010, he worked full days on approximately seven days at the corporation’s Tampa facility when the Elizabeth schools were in session and he was being paid to perform his work as a truant officer. In total, over the course of the two school years, Farley logged more than 250 hours at the corporation’s facilities during hours when he was being paid to perform duties on behalf of the EBOE.
The charge to which Farley pleaded guilty carries a maximum potential penalty of 10 years in prison and a $125,000 fine. As part of his plea agreement, Farley agreed to pay $22,065 in restitution to the Elizabeth Board of Education, reflecting the hours for which he was being paid to perform his duties as an attendance liaison officer but was actually working for the corporation. Sentencing is scheduled for August 6, 2014.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, and investigators with the Union County Prosecutor’s Office, under the direction of Acting Prosecutor Grace Park, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the U.S. Attorney’s Office in Newark and Assistant Prosecutor Robert Vanderstreet with the Union County Prosecutor’s Office.
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Defense counsel: Timothy R. Smith and Wolodymyr Tyshchenko Esqs., Fairfield, N.J.
Farley, Scott Information
Former Canton City Alderman Found GuiltyRead the Press Release
Jackson, Miss - Calvin Louis Smith, 56, a former Canton City Alderman, was found guilty of bribery following a three-day trial in U.S. District Court, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Smith was indicted for bribery in connection with a transaction involving the City of Canton, Mississippi. He will be sentenced on July 17, 2014 at 9:30 a.m. by U.S. District Judge Henry T. Wingate. Smith faces a maximum penalty of 10 years in prison and a $250,000.00 fine.
“For the public to have confidence in their government, they must be certain that their elected officials will use their position for public good instead of personal gain,” said U. S. Attorney Gregory K. Davis. “Today’s verdict is a reminder that public officials will be held accountable when they violate the trust placed in them by the public.”
FBI Special Agent in Charge McMullen stated: “Public service is about serving one’s community. It is not meant to be self-serving. Yet, this public servant chose to use his position to serve himself. Crimes of this nature do not affect just one person or one community. Public corruption affects everyone by undermining their trust.”
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Jerry Rushing.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
Making sure that victims of federal crimes are treated with compassion, fairness and respect.
Training and seminars for Federal, State, and Local Law Enforcement Agencies.
Help us combat the proliferation of sexual exploitation crimes against children.
Florida Fraudster Gets Five YearsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Craig Lee Workman, age 42, a Florida man, was sentenced to five years in federal prison today by the Honorable J. Garvan Murtha in U.S. District Court in Brattleboro, Vermont.
Workman pleaded guilty to a fraudulent tax refund scheme that he operated in Florida and Vermont during 2010-12. Having obtained identification information for over 120 persons, Workman filed fraudulent income tax returns in their names, claiming nearly a million dollars in tax refunds. On each of the returns, he listed bank routing and account numbers for bank accounts that he controlled in Florida and Vermont, and requested direct deposit of the claimed refunds. The IRS intercepted the bulk of the fake filings, but 23 got through, resulting in over $179,000 being deposited by the U.S. Treasury into Workman’s bank accounts.
Workman has a lengthy criminal history going back 20 years, mostly in Florida. Judge Murtha rejected his pleas for leniency today at his sentencing hearing in Brattleboro, and imposed a sentence of five years, to be followed by a supervised release term of three years. Judge Murtha also ordered Workman to repay the money after his release.
Workman has been in the custody of the U.S. Marshals Service since his arrest in Florida in May, 2013. The case was investigated by the Internal Revenue Service’s Criminal Investigation Division. Workman was represented by Federal Public Defender David McColgin. The United States was represented by Assistant U.S. Attorney William Darrow.
Federal Grand Jury Indicts Amarillo Man on Drug and Firearms ChargesRead the Press Release
AMARILLO, Texas— An Amarillo, Texas, man remains in federal custody following his arrest on an indictment charging several felony drug and firearms offenses. Michael Chad Kennedy, 30, appeared before U.S. Magistrate Judge Clinton E. Averitte on those charges yesterday and was ordered detained pending a detention hearing and arraignment set for tomorrow. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Specifically, the 10-count indictment charges Kennedy with four counts of possession with intent to distribute methamphetamine; four counts of being a felon in possession of a firearm; one count of possession of an unregistered firearm; and one count of possessing a firearm in relation to a drug trafficking crime. A forfeiture allegation is also included in the indictment that would require the defendant, upon conviction, to forfeit all firearms and ammunition involved in or used in the commission of the offenses.
The indictment alleges that Kennedy possessed various amounts of methamphetamine, with the intent to distribute it, on February 23, 2013, May 16, 2013, November 27, 2013, and January 25, 2014. The indictment further alleges that Kennedy, a previously convicted felon, possessed firearms on May 16, 2013, June 1, 2013, and November 27, 2013, and that one the firearms he possessed on June 1, 2013 was an illegal sawed-off shotgun. The indictment further alleges that on November 27, 2013, Kennedy possessed a firearm in furtherance of a drug trafficking crime.
A federal indictment is an accusation by a grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the offenses carry the following maximum statutory penalties, per count: possession with intent to distribute methamphetamine – not less than five years or more than 40 years in federal prison and a $5,000,000 fine; felon in possession of a firearm – 10 years in federal prison and a $250,000 fine; possession of an unregistered firearm – 10 years in federal prison and a $250,000 fine; and possession of a firearm in furtherance of a drug trafficking crime – five years up to life in federal prison and a $250,000 fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Amarillo Police Department are conducting the investigation. Assistant U.S. Attorney Timothy Hammer is in charge of the prosecution.
Eagle Butte Man Sentenced for Abusive Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Abusive Sexual Contact with a Child was sentenced on April 28, 2014, by U.S. District Judge Roberto A. Lange.
Daniel Briggs, age 28, was sentenced to 135 months in custody, 5 years of supervised release, $43.20 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Briggs’ conviction is the result of an incident that occurred between December 2010 and December 2012, when Briggs was living with the victim’s mother. At times, when the mother was at work, Briggs was the victim’s caretaker, and had custody and control of the child victim, who was between the ages of 3 and 5 years old. At some point during his babysitting, Briggs had the child victim perform a sex act on him.
This case was investigated by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Mikal Hanson prosecuted the case.
Briggs was immediately turned over to the custody of the U.S. Marshals Service.
Dover Man Fined for Dumping Drilling Waste into Chagrin River TributaryRead the Press Release
An Ohio man was fined $2,000 and put on probation for two years after discharging well drilling waste into Beecher Brook, a tributary of the Chagrin River, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
James L. Hidey, 45, of Dover, Ohio, previously pleaded guilty to two counts of making unpermitted discharges.
Hidey worked for Great Plains Exploration, an oil and gas well drilling company based in Northeast Ohio. On two separate occasions in 2008, he directed the discharge of brine into a stormwater sewer after the completion of gas wells in Mayfield Heights and Highland Heights. The brine flowed from the stormwater sewers into Beecher Brook and eventually into the Chargrin River, according to the information.
Brine is water with a high quantity of salt dissolved into it and is used during the drilling phase of the well installation. It must be handled and disposed of properly because of the toxicity of brine.
“Clean, fresh water is our greatest resource in Northern Ohio,” Dettelbach said. “We will aggressively investigate and prosecute cases in which people pollute Ohio’s streams, rivers and lakes.”
“Individuals who deliberately violate environmental protection laws and jeopardize the health and safety of Ohio families and wildlife must be held accountable for their crimes. I am glad to see that justice is being served in this case,” said Ohio Attorney General Mike DeWine.
“Knowingly discharging harmful waste byproducts from drilling operations has serious consequences for natural resources and local communities,” said Randall Ashe, Special Agent in Charge of EPA’s criminal enforcement program in Ohio. “On several occasions, the defendant instructed his workers to dispose of drilling waste into storm sewer catch basins that ultimately flow into rivers and streams, putting human health, wildlife and the environment at serious risk.”
“We will not tolerate the criminal dumping of brine and those who do will be held accountable,” said Ohio EPA Director Craig W. Butler. “I’m proud of Ohio EPA’s Office of Special Investigations for the work they’ve done in partnership with the members of the Northeast Ohio Environmental Crimes Task Force, including the U.S. EPA Criminal Investigation Division and the Ohio Bureau of Criminal Identification and Investigation.”
This case is being prosecuted by Special Assistant United States Attorney Brad J. Beeson, following an investigation by the U.S. EPA Criminal Investigation Division, the Ohio Bureau of Criminal Identification and Investigation, and the Ohio Environmental Protection Agency, all members of the Northeast Ohio Environmental Crimes Task Force.
Court Stops San Diego Man from Preparing Tax ReturnsRead the Press Release
A federal judge in California has permanently barred Michael I. Turner, of San Diego, from preparing federal tax returns for others, the Justice Department announced today.
In the complaint, filed in August 2013, the government alleged that Turner has prepared returns since at least 2004 but failed to sign or affix a Preparer Tax Identification Number to many of the returns that he has prepared. The complaint also alleged that Turner entered bogus deductions on his customers’ returns, primarily on the Schedule A, Itemized Deductions, in order to claim larger refunds for those customers. Further, the government alleged that when the Internal Revenue Service (IRS) audited Turner’s customers, he provided the customers with false documents in an attempt to assist them in falsely substantiating charitable contributions and employee expenses that they did not incur. Turner pleaded guilty to filing a false tax return in 2013.
In addition to barring Turner from preparing returns, the court’s civil injunction order bars Turner from serving as a representative on behalf of any person or entity before the IRS, and from owning, managing, controlling, working for or volunteering for a tax return preparation business. In consenting to the injunction, Turner did not admit to the government’s allegations.
In the past decade, the Justice Department's Tax Division has obtained more than 500 injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Michael I. Turner
Complaint for Permanent Injunction and Other Relief
Order of Permanent InjunctionCorfu Man Sentenced for Distribution of Child PornographyRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that David Woods, 37, Corfu, N.Y., who was convicted of distribution of child pornography, was sentenced to 120 months in prison by U.S. District Court Judge Richard J. Arcara.
Assistant U.S. Attorney Carol G. Bridge, who handled the case, stated that Woods used an on-line bulletin board system designed for viewing and sharing images and videos of child pornography. Using the email address [email protected], the defendant collected and distributed over 12,000 videos and 20,000 images of child pornography. Many of the images portrayed children, including infants and toddlers, being subjected to bondage and rape by adults.On March 6, 2012, the defendant uploaded eight videos depicting young female victims. On the bulletin board, Woods stated “I hope this gets me into VIP, but even if it doesn’t, I figured I would share.” On April 17, 2013, law enforcement officers executed a search warrant at the defendant’s residence and seized a laptop and other digital equipment containing the images of child pornography.
The sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero.Colorado Residents Among Nine Charged with Conspiracy to Harvest Marijuana in Colorado for Distribution to Oklahoma and Other StatesRead the Press Release
Oklahoma City, Oklahoma – Nine people have been charged in two related complaints alleging conspiracy to harvest marijuana in Colorado for distribution to Oklahoma and other states, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
Defendants in the first complaint are TERRY HARDIN WILKERSON, 71, from Oklahoma City, Oklahoma, WILLIAM JESSE HOGE, 53, from Oklahoma City, Oklahoma, CURTIS FRANK WAGNER, 49, from Crestone, Colorado, DAVID GEUBELLE, 45, from Highland Park, Illinois, CRYSTAL ADAMS, 45, from Oklahoma City, Oklahoma, MARTY SHELLABARGER, 67, from Moffatt, Colorado, and SKYLAR J. FREEMAN, 25, from Crestone, Colorado. Defendants in the second complaint are SHAWN N. MAMINAKIS, 34, from Crestone, Colorado, and DAVID LINCOLN STEELE, 48, from Crestone, Colorado.
Both complaints allege that the defendants conspired to harvest more than 100 kilograms of marijuana in Colorado and distribute it to Oklahoma and other states. For more information, reference is made the attached affidavits made part of the criminal complaints. If convicted, the defendants face no less than five and up to 40 years in federal prison and a fine of $5,000,000. The defendants are all presumed innocent unless and until proven guilty.
Wilkerson was arrested Tuesday and appeared in federal Court for his initial appearance in Oklahoma City yesterday. Hoge was arrested yesterday and appeared in federal court for his initial appearance in Oklahoma City today. Adams was arrested today and will appear for her initial appearance in federal court in Oklahoma City tomorrow. Wagner, Shellabarger, Freeman, Maminakis and Steele were arrested Tuesday and appeared in federal Court for their initial appearance in Denver yesterday. Geubelle was arrested yesterday and appeared in federal court for his initial appearance in Chicago today.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation “Operation Stale Smoke” led by the Oklahoma City District office and the Colorado Springs office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Colorado Springs Resident Office, the Chicago Field Division, and the Oklahoma City District Office of the Drug Enforcement Administration. Valuable assistance was also provided by the United States Attorneys’ Offices for the District of Colorado and the Northern District of Illinois. This case is being prosecuted in the Western District of Oklahoma by Assistant U.S. Attorneys David P. Petermann and David L. Walling.
Cocaine Source’s Mother Laundered Drug Funds for Her SonRead the Press Release
PITTSBURGH - A resident of Antioch, Calif., pleaded guilty in federal court to a charge of violating federal money laundering laws, United States Attorney David J. Hickton announced today.
Coquese Alcorn, 65, pleaded guilty to one count before United States District Judge David S. Cercone.
IRS-Criminal Investigation joined the DEA as major partners in the investigation of the current case with the valuable assistance of multiple other federal, state and local law enforcement agencies. In part, the investigation relied upon search warrants, court orders, consensually recorded conversations, surveillance and information supplied by confidential sources, as well as records and documents obtained by Grand Jury and Administrative subpoenas. The investigation revealed a major cocaine distribution conspiracy which resulted in cocaine being transported to Pittsburgh and other areas from 2000 through 2010. Defendant Robert Russell Spence, Jr. was a local fulcrum of the conspiracy, which was supplied by various cocaine sources over time. The investigation revealed that the conspiracy involved over 2000 kilograms of cocaine and millions in laundered drug money. Over time, the conspiracy involved enough cocaine for every current man, woman and child resident of Pennsylvania to have their own $20 rock of crack cocaine. Conspiracies commonly change both members and mechanisms to adapt to changes, and this conspiracy is no different. Aside from changing cocaine sources over time, the conspiracy also changed its common manner of doing business over time as well. For example, prior to the summer of 2007, the conspiracy utilized packages of cocaine being shipped by the US mail or various common carriers from California to recipients such as Spence in Pittsburgh. Documents and evidence reveal the large number of packages of cocaine shipped to the conspirators, as well as the packages of drug money being shipped back. Multiple seizures of both money and cocaine packages occurred. For example, on June 7, 2007, Postal Inspectors intercepted six kilograms of cocaine from the mail that was earmarked for the conspiracy. On Aug. 5, 2007, Postal Inspectors also seized a package containing $99,850 intended for another co-defendant.
The conspiracy began using couriers to transport cocaine to Pittsburgh and money back to California. The investigation has revealed that between 2007 and 2010 at least 11 different couriers took approximately 200 flights for the conspiracy. These involved the transportation of cocaine to the Pittsburgh end of the conspiracy and the transportation of drug money back to California. Again, multiple packages of both money and cocaine were intercepted. For example, in February of 2008 co-defendant Ruben Mitchell boarded a plane in Oakland bound for Pittsburgh with cocaine in his luggage. Since the flight attendant had trouble getting the carry-on bag into the overhead bin, an airline employee called a “ramper” put a tag on the bag mistakenly causing it to be removed from the plane during a layover in Las Vegas. There, airline employees opened the bag and discovered it to contain 19 kilograms of cocaine. Mitchell was observed, along with others, looking for the bag in Pittsburgh and he also filed a claim for the bag. On Aug. 8, 2009, more than $335,000 in cash, just one part of approximately $700,000 that was sent on this occasion, was seized from the luggage of a conspirator.
During other times, the conspiracy arranged transportation of cocaine or money by means such as chartered private flights and vehicles including tractor trailers. Individuals indicted thus far involve many different roles within the conspiracy. Some conspirators are suppliers, couriers or recipient drug dealer/distributors. Other conspirators played a variety of roles such as: shipping or receiving packages; arranging for couriers, flights and flight payments; money launderers; and those who circumvented security procedures at airports.
The drug activities of supplier Damon Collins generated millions of dollars in cash. A conspiracy existed to launder those funds and resulted in several of the co-defendants structuring drug funds supplied by Collins by involving individual amounts under $10,000 to avoid the transaction reporting requirements under federal and state law, as well as concealing and disguising Collins’ drug money by actions that make it appear that they belong to others. These disguised amounts were used to pay for vehicles, home improvements, mortgage payments, apartment rentals, hotel payments, airline tickets, credit card payment, child support payments and tax payments for Collins.
Ms. Alcorn is the mother of Damon Collins, one of the cocaine sources for this large-scale cocaine distribution network. Collins was a fugitive for a period of 20 months after he was indicted in this district. During his association with the cocaine conspiracy, Collins was able to launder in excess of two million dollars in drug proceeds. The defendant assisted Mr. Collins with this laundering activity by structuring currency deposits, permitting herself to be used as a nominee in financial transactions, paying for his mortgage personally in cash and making payments for him on matters such as: his pool, credit card, and vehicles (Land Rover, Jaguar, Lexus, Mercedes Benz and others). The other alleged launderers of Collins’ money include Jared Weinberg, Howard Weinberg, Bridgette Morgan, Cindy Haughton, Alexandria Brown and Tosha Asker. Each of the co-defendants has pleaded guilty, except Howard Weinberg who is scheduled to plead guilty on May 20, 2014 at 1:15pm. The parties agree that Ms. Alcorn personally laundered $400,000 in drug funds for her son.
Judge Cercone scheduled sentencing for Sept. 11, 2014 at 10:30 a.m. The law provides for a total sentence of 20 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Ross E. Lenhardt, Michael L. Ivory and Gregory J. Nescott are prosecuting this case on behalf of the government.
Buffalo Man Pleads Guilty to Clean Air Act Violation Related to the Kensington Towers ProjectRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Rai Johnson, 35, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to violating the Clean Air Act asbestos work practice standards. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.
“Todays’ conviction means that all defendants who worked directly on the Kensington Towers asbestos removal project – and who intentionally violated federal environmental laws while doing so - have now been brought to justice,” said U.S. Attorney Hochul. “This Office will not permit any company or person – including public officials - to jeopardize the health and well-being of the community through their violation of federal law.”
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was a supervisor at Johnson Contracting of WNY, Inc., an asbestos abatement company that was hired to conduct asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex, located at 1827 Fillmore Avenue in Buffalo. In a pre-abatement asbestos survey, each building at Kensington Towers was found to contain 63,000 square feet of regulated asbestos containing material. The asbestos abatement project lasted from June 2009 to January 2010
During the asbestos abatement of building A-1, Johnson, and employees working under his direction, violated the Clean Air Act asbestos work practice standards by: (i) failing to adequately wet Regulated Asbestos during stripping and removal operations; (ii) failing to ensure that Regulated Asbestos remained wetted until placed in leak-tight containers; and (iii) causing Regulated Asbestos to be dropped down holes cut through the floors in Building A-1.
Rai Johnson is the sixth defendant to plead guilty as part of the Kensington Towers asbestos abatement project. Ernest Johnson, and JMD project monitors Evan Harnden, Chris Coseglia, Henry Hawkins and Brian Scott, have also been convicted. Charges are still pending against current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants are expected to go on trial May 13, 2014. 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 for August 18, 2014, 2014 at 1:00 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the Federal Bureau of Investigation; Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina Scaringi; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain David Bennett. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.Authorities Seek Tyler Man in Cocaine ConspiracyRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 37-year-old Tyler, Texas man is being sought by authorities in a drug conspiracy case in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
On Apr. 9, 2014, Tyler Police Department, Federal Bureau of Investigation, and Texas Rangers executed a search warrant for narcotics at a residence located in Tyler Texas. This was the result of a one-year undercover narcotics investigation led by the Tyler Police Department in conjunction with the F.B.I. Law enforcement officials arrested Micol Jauron Sears, 39, of Tyler. Sears was charged in a federal indictment with conspiracy to possess with intent to distribute cocaine base. Federal and local law enforcement officials are seeking a second suspect, also named in the indictment, identified as Calvin Donell Dorsey, a 37-year-old black male, of Tyler. Dorsey is charged with conspiracy to possess with intent to distribute cocaine base. If you have any information to the whereabouts of Dorsey please contact your Federal or local law enforcement agency.
Attached: Photo of Calvin Donell Dorsey
Allen Man Sentenced for First Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Allen, South Dakota, man convicted of First Degree Burglary was sentenced on April 28, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
George Cortier, age 26, was sentenced to 6 months in custody, 2 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Cortier was indicted for First Degree Burglary by a federal grand jury on November 19, 2013. He pled guilty on January 13, 2014.
The conviction relates to an incident that happened in July of 2013 when Cortier entered a residence through a basement window during the nighttime while the resident of the home was sleeping. Once inside the home, Cortier stole three television sets, a VCR, a handsaw, and a chainsaw.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Cortier was immediately turned over to the custody of the U.S. Marshals Service.
Alabama Man Indicted for Threatening African-American Man and Another Person at RestaurantRead the Press Release
Jeremy Heath Higgins was indicted for threatening an African-American man at a Quinton, Alabama, restaurant, and for threatening another person who ordered Higgins to leave the restaurant due to his behavior, Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Joyce Vance for the Northern District of Alabama announced today.
Higgins, 28, was charged in a three count indictment returned yesterday by a federal grand jury in the U.S. District Court for the Northern District of Alabama. The indictment charges him with one felony count and two misdemeanor counts of interference with a federally-protected activity. The indictment alleges that on June 14, 2013, Higgins approached and threatened an African-American man at the Alabama Rose Steakhouse because the man was present at the restaurant with a white woman. According to the indictment, another person ordered Higgins to leave the premises of the restaurant because of Higgins’ behavior toward the African-American man, after which Higgins allegedly shouted a threat to burn down the restaurant. The indictment further alleges that Higgins threatened the person who had ordered him to leave the restaurant by painting graffiti on the restaurant’s exterior and fence.
If convicted of the felony count of the indictment, Higgins could face a maximum sentence of 10 years in prison and a $250,000 fine. For each of the misdemeanor charges, Higgins could face a maximum sentence of one year in prison and a $200,000 fine.
This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Robin B. Mark of the Northern District of Alabama and Trial Attorney David Reese of the Justice Department’s Civil Rights Division.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
25 Charged After Fbi Task Force Investigation into Hartford Gang-related Drug TraffickingRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the Federal Bureau of Investigation, and Hartford Police Chief James C. Rovella, today announced that 25 individuals have been charged with federal narcotics offenses related to the gang-related distribution of crack cocaine in Hartford’s North End.
According to allegations made in court, this matter stems from a year-long joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force into narcotics trafficking by members and associates of West Hell street gang, and gang-related violent activity. The investigation, which included the use of court-authorized wiretaps, controlled purchases of narcotics and physical surveillance, identified MELKUAN SCOTT, also known as “Young God,” “Mel,” “Young” and “YG,” 23, as the alleged leader of the West Hell street gang who, along with his associates, distributed crack cocaine in the Westland Street area of Hartford.
SCOTT and five co-defendants were arrested on April 15, 2014, after they allegedly participated in a quarter-kilogram crack cocaine transaction. The investigation culminated yesterday with the arrest of nine individuals.
Charged in a 52-count indictment, which was returned by a federal grand jury in New Haven on April 24, 2014, are:
MELKUAN SCOTT, a.k.a. “Young God,” “Mel,” “Young” and “YG,” 23, of Eastford Street, Hartford, and Lake Road, Andover
ARTHUR STANLEY, a.k.a. “Wigs,” “P,” and “Peno,” 24, of Townley Street, Hartford
JEFF ANTOINE, a.k.a. “Little Homie,” 19, of Barbour Street, Hartford
RASHAWN DUBOSE, a.k.a. “Chubbs,” and “Trev,” 22, of Love Lane, Hartford
GREGORY THOMAS, a.k.a. “Quanny” and “Jim,” 23, of Earle Street, Hartford
TYSHAWN McDADE, a.k.a. “S Dot” and “S Diddy,” 29, of Homestead Avenue, Hartford
AKEEM MANOO, a.k.a. “Keeme,” 23, of Pliny Street, Hartford,
RICARDO HOWE, a.k.a. “Dino” and “Tyson,” 25, of Cornwall Street, Hartford
NEHELIAH BARNETT, a.k.a. “Neagmiah,” “Nelly,” “Ney” and “Nehemiah,” 26, of Love Lane, Hartford
RAYMOND RIVERA, a.k.a. “White Boy,” 24, of Sheldon Street, Hartford
KYRIN-ROBERT JACKSON, a.k.a. “Ky,” 23, of Martin Street, Hartford
*GABRIEL HORACE WILLIAMS-BEY, a.k.a. “G Money,” “Money” and “Mugga,” 25, of Manchester Street, Hartford
TAFARIE GREEN, a.k.a. “Farie,” 24, of Grandview Terrace, Hartford
IRIS PEREZ, 40, of Dudley Street, Manchester,
AFESHA MANOO, a.k.a. “Fesha” and “Fee,” 23, of Pliny Street, Hartford
HORACE STARKS, JR., a.k.a. “Head” and “Little Head,” 22, of Burnside Avenue, East Hartford,
JAMIE COLEMAN, a.k.a. “City,” 23, of New Britain Avenue, West Hartford
ARNOLD THOMPSON, a.k.a. “B,” 24, of Garden Street, Hartford
JERROD HALL, a.k.a. “Slime,” 20, of Winchester Street, Hartford
RAQUIM SMITH, a.k.a. “Bud,” “Butter” and “Rakim,” 21, of Westland Street, Hartford
JAMAL HOWELL, a.k.a. “Squizzy,” 28, of Eggleston Street, Bloomfield
RASHAWN HILL, 32, of Winchester Street, Hartford
JASON WATSON, a.k.a. “Noggin,” 26, of Earle Street, Hartford
SHAQILLE BROWN, a.k.a. “Shaq,” 21, of Oakland Terrace, Hartford
*MICHAEL MORRISON, a.k.a. “Nazzie,” 24, of Norfolk Street, Hartford(*WILLIAMS-BEY and MORRISON are currently being sought by law enforcement. Citizens with knowledge of their whereabouts, or with information that may be helpful the investigation of this matter, are encouraged to call the FBI at 203-777-6311.)
“Gang-related drug activity terrorizes and tears apart the fabric of our communities,” stated U.S. Attorney Daly. “The U.S. Attorney’s Office and our law enforcement partners are prepared to use the full weight of federal law to prosecute individuals involved in gangs and related activity. I commend the work of the FBI’s Northern Connecticut Violent Crimes Task Force, which is committed to investigating serious criminal behavior in Hartford and rooting out violent individuals from our communities. This investigation is ongoing. We will continue to work closely with our state counterparts to investigate acts of violence that may relate to this alleged drug trafficking activity.”
“The distribution of narcotics allegedly undertaken by members and associates of the West Hell street gang has been seriously disrupted as a result of this successful long-term investigation by the Northern Connecticut Violent Crimes Task Force,” stated FBI Special Agent in Charge Ferrick. “It is our hope that this continuing investigation will break West Hell’s stronghold on some of Hartford’s north end neighborhoods. Any group that attempts to fill the void created by these arrests will suffer the very same fate.”
“This effort is a perfect demonstration of the benefits of all our law enforcement partners, local, state and federal, all working in concert to achieve the same objective of stemming violence in our city streets,” stated Chief Rovella. “Law enforcement believes that the group targeted in this operation not only distributes drugs, but has had a propensity for gun violence. We are committed to working together with both the community and our law enforcement partners to make our neighborhoods safer.”
The indictment charges SCOTT, STANLEY, ANTOINE, DUBOSE, THOMAS, McDADE, AKEEM MANOO, HOWE, BARNETT, RIVERA, JACKSON, WILLIAMS-BEY, GREEN, PEREZ, AFESHA MANOO, and STARKS with conspiracy to distribute and to possess with intent to distribute cocaine base (“crack cocaine”). If convicted of this charge, based on the quantity of narcotics charged, SCOTT, STANLEY, ANTOINE, DUBOSE, THOMAS, McDADE, AKEEM MANOO and HOWE face a minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and BARNETT, RIVERA, JACKSON, WILLIAMS-BEY, GREEN, PEREZ, AFESHA MANOO and STARKS, face a minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
SCOTT, STANLEY, ANTOINE, DUBOSE, THOMAS, McDADE, AKEEM MANOO, HOWE, RIVERA, WILLIAMS-BEY, and STARKS are charged with one or more counts of possession with intent to distribute, and distribution of, various quantities of crack cocaine. SCOTT and STANLEY are also charged with multiple counts of possession with intent to distribute, and distribution of, crack cocaine and powder cocaine.
COLEMAN, THOMPSON, HALL, SMITH, HOWELL, BROWN and MORRISON are charged with use of telephone to facilitate the distribution of crack cocaine, and HILL and WATSON, are charged with use of a telephone to facilitate the distribution of heroin. If convicted of this charge, each defendant faces a maximum term of imprisonment of four years.
SCOTT, DUBOSE and BARNETT are charged with one count of maintaining a premise to manufacture a controlled substance. These defendants are alleged to have used an apartment at 33-35 Love Lane in Hartford to convert, or “cook,” cocaine into crack cocaine. If convicted of this charge, each defendant faces a maximum term of imprisonment of 20 years.
Finally, the indictment charges SCOTT, with one count of possession of a firearm by a previously convicted felon, an offense that carries a maximum term of imprisonment of 10 years. A loaded Heckler & Koch, model P2000, .40 caliber handgun was found during a search of SCOTT’s residence on April 15, 2014.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force, Drug Enforcement Administration, U.S. Marshals Service and Internal Revenue Service – Criminal Investigation Division. The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Squad, Major Crimes Unit and Shooting Task Force are providing valuable assistance to the investigation, and the Capitol Region Emergency Response Team (CREST) assisted with the arrest of certain defendants. The Office of the Chief State’s Attorney is also assisting with this ongoing investigation.
The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Peter S. Jongbloed.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]** CLARIFICATION** Intrieri Sentenced to 30 Months for Wire Fraud **CLARIFICATION**Read the Press Release
- RIFICATION**
Please be advised that Northeast Metal Traders was mistakenly named as being affiliated with STEPHEN SALVATORE INTRIERI in the news release issued below. In fact, Northeast Metal Traders has no affiliation with Mr. Intrieri or his business affairs. The wording of the press release and the document filed with the Court lacked clarity and the United States Attorney regrets any misunderstanding the drafting error may have created for the company or its customers.
ORIGINAL PRESS RELEASE DATED Wednesday, February 26, 2014 below
The United States Attorney(s Office announced that STEPHEN SALVATORE INTRIERI, 30, of Mount Laurel, New Jersey, was sentenced on February 20, 2014, to a term of 30 months in federal prison for with three years of supervised release to follow, for running an interstate scrap metal scam. Intrieri was sentenced by U.S. District Judge Dana L. Christensen in Missoula. Christensen also ordered Intrieri to pay $326,474.36 in restitution.
In an Offer of Proof filed with the Court, Assistant U.S. Attorney Tim Racicot
Whitefish Police Department initially received a complaint from an officer with a New Jersey scrap metal procurement company that buys scrap metal in the United States and sells it overseas. On February 29, 2012, the company received a call from "Tony Giordano," a salesman for Montana Metal Recyclers ("MMR"), which was allegedly doing business from Whitefish, about purchasing scrap metal. An agreement was reached and on June 8, 2012, the New Jersey company wired $19,000 to MMR's bank account at Bank of America.
The officer of the New Jersey company told police that he was cautious in his dealings with Giordano, but Giordano's knowledge of the scrap metal industry made him comfortable proceeding with the deal after receiving pictures of the material he was purchasing and Giordano's answers to some technical questions about the industry and the shipment. After he sent the money, Giordano could never be reached and the company never received the scrap metal it had purchased. When the company official was later asked if he had prior interactions with Intrieri, he described being defrauded out of $30,000 by Intrieri and Northeast Metal Traders in approximately 2009, and provided the documents from that transaction.
It is not uncommon for persons engaged in telemarketing fraud to return to prior victims-a technique referred to as "reloading"--with assurances that they want to redeem themselves by making it up to the victim with a second deal often more lucrative than the first. This scam prays on the desire to make up for lost investment and the chance to recoup lost funds is often too seductive to resist.
Another victim contacted the Whitefish police-as well as the Secret Service in New York-to report that he paid MMR $95,000 on the basis of representations made by a man who called himself "Tony Giordano," to buy scrap metal that he never received. The second victim, A.B., made two attempts to verify the legitimacy of MMR, including one with a person, A.W., whose name was referenced in a sales agreement to which MMR was a party. A.B. received a response to his email to A.W. indicating MMR was a reputable company, but when he actually spoke with A.W., he learned that A.W. did not send the email and had never heard of MMR.
The Secret Service in New York initiated an investigation into MMR, during which they discovered MMR did not have a facility or office at the address in Whitefish listed on the incorporation documents. They traced some of the money that paid to MMR to the purchase of a $37,510 engagement ring by Intrieri on February 10, 2012, from Jay Roberts Jewelers in Marlton, New Jersey. Intrieri paid for the ring with a cashier's check from RBS Citizens Bank. The owner of the jewelry store was interviewed and confirmed that a man who provided the name Steve Intrieri bought a 3-carat diamond engagement ring. Intrieri told the jeweler that he lived in Bayonne, NJ, and his parents lived in Mount Laurel, NJ.
The second victim was Facebook friends with Intrieri and told one of the investigating agents that Intrieri proposed to his girlfriend on February 11, 2012, and posted pictures of her wearing a large diamond ring. The second victim provided screen shots of the posts to the Secret Service and the owner of the jewelry store identified the ring that he sold Intrieri in the photo from the post on his fiancé's Facebook page. The owner also identified Intrieri from the RBS Citizen's Bank surveillance, which was captured at the same time he obtained the cashier's check to pay for the ring. The agents in New York eventually turned over their investigation to an agent in Montana, given that MMR was incorporated in Montana and allegedly had a business address in Whitefish.
RBS Citizens Bank froze MMR's account sometime around February 15, 2012. MMR's first statement for the Bank of America account covers the time period from February 15-29, 2012, which indicates it was opened the same time the RBS account was frozen. Intrieri wired more than $125,000 from the MMR Bank of America account into his personal Chase bank account, and nearly $10,000 was wired into his fiancé's account. Altogether, it appears that Intrieri received approximately $370,000 from the various victims of the MMR scheme. Approximately $49,000 was returned to the second victim with the RBS Citizens account was frozen.
Investigating agents found that Intrieri was affiliated with seven different businesses, at least four of which appeared to deal with scrap metal sales. Their searches revealed that Intrieri had been the subject of prior Secret Service investigations and had a criminal history. The agents also interviewed other victims of Intrieri's scheme, who provided information consistent with what was relayed by the victims who had contacted the Whitefish Police Department.
U.S. Attorney Mike Cotter reminded all Montanans to be wary of "cold calls" promising lucrative returns, particularly if you have been a prior victim of telemarketing fraud.
Unsolicited calls from people you do not know, making promises you want to believe, are most often completely fraudulent. These swindlers feed on people's dreams of an easier-more financially secure-future. With one phone call, they can steal those dreams by taking away all you've saved and everything you were saving for. And if you've been fooled before they will be back to take whatever they did not get the first time around." -- Mike Cotter, U.S. Attorney for Montana.
Wednesday 30 April 2014
West Palm Beach Police Officer Pleads Guilty to Selling Controlled Substances While in Uniform and on DutyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, David W. Bourne, Special Agent in Charge, Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office, and Brian Kummerlen, Interim Chief, West Palm Beach Police Department, announce that Dewitt McDonald, 45, of Wellington, pled guilty to a one-count information charging him with knowingly carrying a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). Sentencing is scheduled for July 18, 2014 at 9:00 a.m. in Fort Lauderdale before U.S. District Judge James I. Cohn.
According to the stipulated statement of facts filed with the Court, the defendant was a police officer with the West Palm Beach Police Department. While employed as a police officer, the defendant operated two businesses: Prime Performance Wellness Centers, Inc., located in Lake Worth, and Prime Health and Rejuvenation Clinic, located in Wellington, through which he unlawfully distributed anabolic steroids and other prescription drugs. The stipulated statement of facts further states that on March 5, 2013, while on duty and carrying his Smith & Wesson MP40 pistol, the defendant made a delivery of these drugs to another officer of the West Palm Beach Police Department.
The defendant faces a minimum sentence of five years in prison and a maximum statutory sentence of up to life in prison.
Mr. Ferrer commended the investigative efforts of the FBI and FDA Office of Criminal Investigations. Mr. Ferrer also thanked the West Palm Beach Police Department for their cooperation and assistance in this matter. This case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan, Paul F. Schwartz, and Lawrence D. LaVecchio.
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.
Wellsville Man Sentenced on Drug ChargesRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that John R. Faber, 28, of Wellsville, N.Y., who was convicted of conspiracy to manufacture, possess with intent to distribute and distribute, 50 grams or more of methamphetamine, was sentenced to 40 months in prison and ordered to pay $3,143 in restitution to the New York State Department of Environmental Conservation by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Thomas S. Duszkiewicz, who handled the case, stated that during the execution of a search warrant on January 26, 2012 at a residence on South Main St. in Wellsville, law enforcement officers discovered items used to manufacture methamphetamine and a quantity of methamphetamine. A search warrant was later executed at a residence on Madison Ave. in Wellsville. During that search, officers discovered an active methamphetamine laboratory.
The defendant was arrested along with Jason Patterson, his wife April Patterson, Anthony Kidd, and Justin McPherson. Jason Patterson, April Patterson and Anthony Kidd have been convicted and are awaiting sentencing. Justin McPherson was convicted and sentenced to 24 months in prison.
Today’s sentencing is the result of an investigation on the part of the New York State Police, under the direction of Major Michael Cerretto, the Wellsville Police Department, under the direction of Chief Timothy Walsh, and the Drug Enforcement Administration, under the direction of Jamie J. Hunt, Acting Special Agent in Charge, New York Field Division.Waterloo Man Sent to Federal Prison for Unlawful Gun PossessionRead the Press Release
A Waterloo man who ran from police with a firearm was sentenced on April 25, 2014 to almost four years in federal prison.
Ted Alfonso Scott, Jr., 23, from Waterloo, Iowa, received the prison term after a February 4, 2014 guilty plea to possession of a firearm by a felon.
In a plea agreement, Scott admitted he possessed two separate 9 millimeter pistols in Waterloo. In December 2013, the Waterloo Police Department responded to a report of shots fired. An officer responding to the scene observed an individual the officer later identified as Scott running from the scene. Police chased Scott as he ran up the external staircase of an apartment building with a pistol in his hand. Scott was later arrested and admitted to possessing the gun, which was found in the staircase. Scott also admitted he possessed a second firearm which officers found hidden in a Waterloo garage in July 2013. Scott was a felon, having been convicted of Possession of Marijuana with Intent to Deliver in Black Hawk County in 2011. Scott has a history of gang involvement.
Scott was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. He was sentenced to 46 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Scott is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Waterloo Police Department’s Violent Crime Apprehension Team (VCAT) and Watch III patrol, with assistance from the Black Hawk County Attorney’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/ cgi-bin/login.pl. The case file number is 13-CR-2041.
Waste Management of Hawaii Inc. and Managers Indicted for Violations of Clean Water Act, Conspiracy, Making False StatementsRead the Press Release
Millions of Gallons of Medical Waste-Contaminated Storm Water Released into Hawaii’s Coastal Waters
HONOLULU – A federal grand jury in Honolulu returned a 13-count indictment today charging Waste Management of Hawaii Inc. (WMH); Joseph R. Whelan, WMH’s General Manager and a vice president of WMH; and Justin H. Lottig, WMH’s environmental protection manager, with multiple felonies, including knowing violations of the Clean Water Act, conspiracy and making false statements to the Hawaii Department of Health and the U.S. Environmental Protection Agency (EPA), the Justice Department announced today.
The charges stem from alleged illegal discharges of contaminated storm water from the Waimanalo Gulch Sanitary Landfill into Hawaii’s coastal waters after heavy rainfalls in December 2010 and January 2011. WMH was permitted to discharge storm water from the landfill to the Pacific Ocean under a National Pollutant Discharge Elimination System (NPDES) permit issued by the Hawaii Department of Health Clean Water Branch (DOH-CWB). The storm water was required to go through the landfill’s storm water management system to ensure that it did not come into contact with waste in the landfill before being discharged to Hawaii’s coastal waters. The NPDES permit prohibited WMH from causing or contributing to a violation of Hawaii’s state water quality standards.
The indictment alleges that from April 19, 2010 until Dec. 23, 2010, WMH Environmental Protection Manager Lottig conspired with employees from an environmental consulting firm to submit false and outdated information to DOH-CWB in June, August and September 2010. The purpose of the conspiracy was to convince DOH-CWB that the landfill had an adequate storm water management system in place in order to renew its NPDES storm water discharge permit.
The indictment also alleges that from Oct. 27 to Dec. 23, 2010, Lottig and WMH violated the permit by knowingly failing to inform DOH-CWB of material changes in the storm water management system that would have alerted the DOH-CWB that an inadequate system was in place.
On Dec. 19, 2010, a heavy rainstorm struck Oahu, and Cell E6, which contained millions of pounds of waste including raw sewage, sewage sludge and medical waste, was flooded with millions of gallons of storm water from up canyon. The indictment alleges that from December 20 to 23, WMH pumped millions of gallons of contaminated storm water from Cell E6 into coastal waters near the Ko Olina Resort. The indictment alleges that on December 20 and 23, Lottig falsely stated to DOH-CWB inspectors that any storm water being discharged from the landfill had not come into contact with waste from Cell E6.
On the evening of Jan. 12, 2011, another heavy rainstorm struck Oahu. The indictment alleges that unbeknownst to DOH-CWB, Whelan and WMH caused the discharge of millions of gallons of contaminated storm water to the coastal waters near the Ko Olina beach resort for several hours that evening and/or into the morning of January 13 without authorization from DOH-CWB. The pollutants included large amounts of medical waste, including blood vials, syringes and catheters, raw sewage and sewage sludge. The indictment alleges that on Jan. 13 and 20, 2011, an engineer from WMH falsely stated to DOH-CWB inspectors that the manhole which WMH used for the unauthorized discharges had been closed when in fact he knew that it had been left open to serve as an overflow drain.
The indictment also alleges that Whelan and WMH submitted false material statements and concealed material information in written submissions to DOH-CWB on April 21, 2011 and to the EPA on Aug. 1, 2011.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.
If convicted, WMH faces a maximum criminal fine of $500,000 for each count. If convicted of the count charging failing to inform DOH-CWB of material changes in the storm water diversion system, WMH faces a maximum fine of $50,000 per day of the alleged violation.
If convicted, Lottig faces a maximum sentence of five years in prison for each count of conspiracy and for each count of making a false statement to DOH-CWB; a maximum of three years for failing to inform DOH-CWB of material changes in the storm water diversion system plus a fine of $50,000 per day of the alleged violation; a maximum of two years for each count of providing false information to DOH-CWB; and a maximum of three years for each count of illegal discharges in violation of the Clean Water Act. If convicted, Lottig also faces a maximum criminal fine of $250,000 for each count.
If convicted, Whelan faces a maximum sentence of three years for each count alleging illegal discharges in violation of the Clean Water Act and a maximum of two years for each count of making false statements to DOH-CWB and EPA; and a maximum criminal fine of $250,000 for each count.
The case is being prosecuted by Assistant U.S. Attorney Marshall Silverberg of the U.S. Attorney’s Office for the District of Hawaii and Senior Trial Attorney Daniel Dooher of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division. It was investigated by U.S. Environmental Protection Agency-Criminal Investigation Division, with the assistance of the DOH-CWB.
Washington Man Sentenced in Conspiracy to Export Sophisticated Computer Equipment to IranRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced John Alexander Talley (42, Seattle, Washington) to 30 months in federal prison for conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transaction Regulations. The court also sentenced Talley’s company, Tallyho Peripherals, Inc. d/b/a Enterprise Solutions Systems, to one year of probation.
Talley and Tallyho pleaded guilty on September 18, 2013.
According to court documents, from about 2009 to about September 2012, Talley and his company conspired with others, including Mohammed Reza “Ray” Hajian, to unlawfully export sophisticated enterprise level computer equipment from the United States to Iran, and to provide computer information technology (IT) support services for the equipment, all in violation of the United States embargo. Talley’s role was to provide training and computer IT support to ensure that the computer equipment operated in Iran. In an effort to conceal their activities, the conspirators in the United States caused shipments of the computers and related equipment, as well as the payments for same, to travel to and from the United States and Iran through the United Arab Emirates. Similarly, payments for Talley’s support services were wired through the UAE.
On July 11, 2012, Hajian and three of his companies, RH International LLC, Nexiant LLC, and P & P Computers LLC, pleaded guilty to charges involving the same conspiracy to violate the Iranian Embargo. Hajian and his companies also pleaded guilty to a conspiracy to violate the International Emergency Economic Powers Act and the Iranian Transaction Regulations. On October 18, 2012, Hajian was sentenced to four years in federal prison.
On September 12, 2013, two Iranian nationals, Mahmood Akbari, a/k/a John Wasserman and Reza Hajigholamali, and three UAE front companies, Patco Group Ltd., Managed Systems and Services (FZC), and TGO General Trading LLC, were indicted in connection with the same conspiracy. Charges against those parties included a conspiracy to violate the International Economic Powers Act, and a conspiracy to commit international money laundering. According to the superseding indictment in that case, Hajian was selling the sophisticated computer equipment and services at issue to Akbari.
If convicted, Akbari and Hajigholamali face a maximum penalty of up to 40 years in federal prison.
On April 24, 2014, Michael J. Dragoni (48, Riverview, FL), and two companies controlled by him, Fortis Data Systems, LLC (“FDS”) and Greencloud LLC, pleaded guilty to conspiracy to commit mail fraud. Dragoni faces a maximum penalty of 5 years in federal prison.
According to plea agreements filed in the case, from about August 2009 through at least August 2011, Dragoni, along with Randy Dale Barber, using Dragoni’s companies FDS and Greencloud, conspired to defraud Hitachi Data Systems (“HDS”) by making materially false statements to HDS in order to purchase computer equipment for resale to Hajian, who in turn resold the equipment to his client, Akbari, and UAE company Patco. By late 2009, Dragoni, Barber and Hajian knew that HDS refused to sell computer equipment to Hajian, and his customers Akbari and Patco, because HDS believed that the equipment was being diverted to unauthorized end users. In order to deceive HDS and purchase the computer equipment, Dragoni and Barber made false statements regarding the purchaser, end user, and location of installation of the equipment that they were purchasing, including by using front companies to make equipment purchases on their behalf. Dragoni and the conspirators then caused the equipment to be shipped to Dubai.
On February 28, 2014, Barber also pleaded guilty to conspiracy to commit mail fraud in connection with making false statements to HDS. Barber is scheduled to be sentenced on May 28, 2014, and faces a maximum penalty of up to five years in federal prison.
“Engaging in a conspiracy to export sensitive United States technologies to prohibited countries like Iran is a serious crime that threatens our national security,” said Shane Folden, acting special agent in charge of HSI Tampa. “HSI is committed to investigating those who seek to steal our country’s critical technology and to working with our law enforcement partners to disrupt and dismantle these illicit procurement networks.”
"Protecting our national security is a top priority of the Office of Export Enforcement," said Robert Luzzi, Special Agent In-Charge of the of the U.S. Department of Commerce's Office of Export Enforcement Miami Field Office. "Today's sentencing proves that those who conspire to violate U.S. export controls by illegally diverting sensitive technology anywhere in the world will be pursued and prosecuted to the fullest extent of the law."
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the U.S. Department of Commerce, Office of Export Enforcement. It was prosecuted by Assistant United States Attorney Mark E. Bini and Trial Attorney Mariclaire Rourke of the Counterespionage Section of the U.S. Department of Justice, National Security Division.
U.S. Border Patrol Agent Arrested on Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Abel Michael Quiroz, 26, a U.S. Border Patrol Agent who resides in Las Cruces, N.M., was arrested yesterday on federal child pornography offenses. Quiroz made his initial appearance in federal court in Las Cruces this morning. He remains in custody pending a detention hearing which has yet to be scheduled.
Quiroz was arrested on a criminal complaint charging him with receiving and possessing visual depictions of minors engaged in sexually explicit conduct. According to the criminal complaint, Homeland Security Investigations (HSI) initiated an investigation into Quiroz after receiving information that an adult male, later confirmed to be Quiroz, was having inappropriate communications with a 15-year-old child (victim).
The complaint alleges that execution of a search warrant for the contents of an email address belonging to Quiroz revealed found numerous sexually explicit communications between Quiroz and the victim as well as nude and sexually explicit photographs of the victim. On April 29, 2014, HSI special agents executed a federal search warrant at Quiroz’s residence where they seized digital media and arrested Quiroz. There is no evidence suggesting that Quiroz’s alleged criminal activities were conducted with government-owned equipment or technology.
If convicted of the charges in the criminal complaint, Quiroz faces a federal prison term of not less than five years and not more than 20 years. If convicted, Quiroz also would be required to register as a sex offender. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Child Exploitation Unit of HSI’s office in Las Cruces pursuant to Project iGuardian, an HSI initiative designed to reach children, parents and teachers and share information about the dangers of online environments, how to stay safe online and how to report abuse and suspicious activity. The Olathe (Kansas) Police Department assisted in the investigation.
The case is being prosecuted by Assistant U.S. Attorney Alexander Shapiro of the U.S. Attorney’s Las Cruces Branch Office as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The Operation also was brought as a part of the New Mexico Internet Crimes Against Children (ICAC) Task Force’s mission, which is to locate, track, and capture Internet child sexual predators and Internet child pornographers in New Mexico. There are 74 federal, state and local law enforcement agencies associated with the New Mexico ICAC Task Force, which is funded by a grant administered by the NMAGO. Anyone with information relating to suspected child predators and suspected child abuse is encouraged to contact federal or local law enforcement.Two Yantis TX Men Plead Guilty to Wire/Mail FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that MICHAEL SCOTT CALHOUN, age 49, and TOMMY WAYNE DAVIS, age 47, both of Yantis, Texas, pled guilty to Conspiracy to Commit Wire Fraud/Mail Fraud, in violation of Title 18, United States Code, Section 1349.
The charge arose from an investigation by the Federal Bureau of Investigation. The defendants were indicted in August, 2012.
The Indictment alleged that in or about August 2007 to in or about April 2010, in the Eastern District of Oklahoma and elsewhere, the defendant, knowingly and wilfully conspired with other persons known and unknown to the Grand Jury, to transmit or caused to be transmitted by means of a wire communication or the United States Mail, communication for the purpose to defraud the United States and Texas Capital Bank, a financial institution insured by the Federal Deposit Insurance Corporation, all in order to obtain money by means of false and fraudulent pretenses, representations, and promises.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty pleas and ordered the completion of presentence reports.
The statutory range of punishment is up to 30 years imprisonment and/or up to a $1,000,000.00 fine.
Assistant United States Attorney Chris Wilson represented the United States.
Two Tax Preparers Prosecuted in Separate Unrelated Cases for Filing Fraudulent ReturnsRead the Press Release
DENVER – U.S. Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announce the prosecution of return preparers for fraudulently preparing false tax returns. As another filing season comes to an end, Federal officials remind those who prepare and file fraudulent tax returns, they will be criminally prosecuted. Recent return preparer cases prosecuted in the District of Colorado include the following:
Austin Ray, Age 46, of Denver CO and Anne Rasamee, Age 29, of Stockton CA, where arrested last week on charges of conspiracy to defraud the United States and preparing fraudulent tax returns. Ray and Rasamee were indicted by a federal grand jury in Denver on April 10, 2014 which remained sealed until their arrests. Ray was arrested in Denver and had his initial appearance and arraignment last week. He remains in custody of the U.S. Marshals. Rasamee was arrested in Stockton where she had her initial appearance on April 22, 2014 and was released on bond. Her arraignment is scheduled for May 7, 2014 in Denver.
Ray and Rasamee owned and operated Cheapertaxes LLC, a tax preparation business in Colorado. Beginning in March 2006 through April 2010, they conspired to defraud the IRS by preparing fraudulent income tax returns which containing false income and deductions, for the purpose of obtaining inflated tax refunds for their clients. They falsified itemized deductions on Schedule A, business losses on Schedule C and personal exemptions.
To further conceal the scheme, they would list a third party who had not prepared the fraudulent tax return as the return preparer on the client’s return. Ray and Rasamee had the taxpayers refunds deposited into Cheapertaxes’s bank account and after deducting their fees pay the difference to the taxpayers. At times, they failed to pay their client’s the balance of the refunds. Rasamee was charged with one count of conspiracy to defraud the United States and thirty counts of preparing fraudulent tax returns. Ray was charged with one count of conspiracy to defraud the United States and five counts of preparing fraudulent tax returns. The defendants are presumed innocent unless and until proven guilty. This case is being prosecuted by Assistant United States Attorney Anna Edgar.
In a separate case, Lance McCuistion, age 46, of Thornton CO, pled guilty on April 28, 2014 to one count of preparing a fraudulent tax return. He was charged by an Information on February 20, 2014 waiving his right to be charged by a federal grand jury.
McCuistion owns and operates LM Tax Services, a tax-preparation business in Thornton, CO. From 2007 through 2009, he prepared and filed at least 1600 tax returns for which at least 18 clients he falsely inflated their Schedule A deductions, resulting in refunds greater than his clients were entitled. False deductions included charitable contributions, unreimbursed business expenses, and child care expenses. The tax loss relevant to his offense is $70,536.
IRS CI Special Agents conducted an undercover operation during which McCuistion prepared a tax return falsely overstating deductions and he openly discussed his fraudulent return preparation. Following the execution of a search warrant at his home and business, McCuistion admitted to the special agents that he had filed returns with false charitable contributions. Furthermore, he also approached several taxpayers during their audit process to discuss false items on their returns to further conceal the fraud. This case is being prosecuted by Assistant United States Attorney Suneeta Hazra.
Conspiracy to defraud the United States carries a penalty of not more than 5 years in federal prison, and a fine of up to $100,000, per count. Preparing a false tax return carries a penalty of not more than 3 year imprisonment, and a fine of up to $250,000, per count.
Two Plead Guilty to Timber TheftRead the Press Release
BOISE - Terry Kevin Burton, 46, of Wilder, Idaho, and his son, Brent L. Burton, 22, of Homedale, Idaho, pleaded guilty today to theft of government property from the Malheur National Forest, U.S. Attorney Wendy J. Olson announced. The Burtons were indicted by a federal grand jury in Boise on October 9, 2013.
According to the plea agreement, the Burtons admitted that in May 2013, they made several trips into the Malheur National Forest to unlawfully cut lodgepole pine post and poles, which they intended to sell commercially. Neither Burton had a commercial timber license or contract allowing them to take the lodgepole pine post and poles from the National Forest. The Burtons also created an illegal trail through the National Forest to get to the timber, which resulted in additional damage to the area. As part of their plea agreement, the Burtons have agreed to pay $3,880 in restitution for the timber they unlawfully cut and removed from the National Forest and for the costs to restore the damaged area.
The charge of theft of government property is punishable by up to one year in prison, a maximum fine of $5,000, and up to one year of supervised release.
Sentencing is set for July 9, 2014, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the U. S. Forest Service in John Day, Oregon.
Two Officers of Long Island Based Company Indicted for Sale of $17 Million Worth of Misbranded Prescription Drugs Including Counterfeit Cancer DrugsRead the Press Release
A 73-count indictment was unsealed this morning in federal court in Central Islip, NY, charging William Scully and Shahrad Rodi Lameh – President and Vice President, respectively, of Pharmalogical, Inc., d/b/a Medical Device King in Great Neck, New York – with multiple counts of conspiracy, mail fraud, wire fraud, distribution of misbranded and counterfeit prescription drugs, trafficking in counterfeit goods, and smuggling.1 The defendants were arrested earlier today and will appear for arraignment before U.S. Magistrate Judge William D. Wall at 2 pm at the federal courthouse in Central Islip.
The arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Mark Dragonetti, Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigation, New York Field Office (“FDA OCI”).
As alleged in the indictment, the defendants operated the illegal schemes since March, 2009, and the counterfeit cancer treatment medication was sold to an oncology practice in Iowa. The defendants sold in the United States other drugs and devices including, Mirena brand intrauterine birth control implant devices (“IUDs”) manufactured in Finland that were not approved by the United States Food and Drug Administration for use in the United States. The unapproved IUDs were sold throughout the country to women's clinics and health care providers. The defendants also sold a variety of other unapproved prescription drugs during the course of the scheme and grossed over $17 million.
“As alleged, instead of seeing an opportunity to alleviate suffering and cure disease, Scully and Lameh saw a chance to make money off the backs of those already fighting for their lives, selling counterfeit cancer medication to an unsuspecting clinic. The defendants deliberately and repeatedly flouted the laws enacted to protect our citizens, all in order to flood the market with counterfeit and unapproved drugs and medical devices just so they could line their own pockets,” stated United States Attorney Lynch. "We and our law enforcement partners will vigorously pursue and prosecute those who seek to profit from the illness of others by such fraud."
FDA OCI Special Agent-in-Charge Dragonetti stated, "The FDA will remain vigilant in our efforts against those who would threaten the integrity of the prescription drug supply chain by introducing counterfeit and unapproved products for their own financial gain. We commend the work by the U.S. Attorney's Office, and together we will continue to pursue those who jeopardize the health of the public."
If convicted, each defendant faces a maximum sentence of 20 years of imprisonment, asset forfeiture of more than $17 million, and a $250,000 fine.
The government's case is being prosecuted by Assistant United States Attorney Charles P. Kelly.
The Defendants:
Name: WILLIAM SCULLY
Age: 45
Residence: Commack, N.Y.
Name: SHAHRAD RODI LAMEH
Age: 40
Residence: Manhasset, N.Y.
___________________________________________________________________________
1 The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Two Men Sentenced for Drug Trafficking in Omaha, NebraskaRead the Press Release
United States Attorney Deborah R. Gilg announced that Heriberto Gomez, Jr., age 32, and Adrian Pisares-Valenzuela, age 25, both of Omaha, Nebraska, were sentenced for conspiracy to distribute large quantities of methamphetamine in Omaha, Nebraska. Mr. Gomez was also sentenced for money laundering. Sentencing proceedings were held before United States District Judge Joseph F. Bataillon. Mr. Gomez was sentenced on April 28, 2014, to time served, followed by a five-year term of supervised release. Mr. Pisares-Valenzuela was sentenced on December 23, 2013, to nine years in prison and will be required to serve a five-year term of supervised release following the completion of his prison sentence.
Heriberto Gomez, Jr., owned Gomez Auto Sales and traded methamphetamine in exchange for work done on vehicles at his business. He sold vehicles to Mr. Pisares-Valenzuela and others, knowing the source of the payments were from drug sales or other illegal activities. Gomez falsified paperwork regarding the purchase of vehicles to disguise the sources of the funds by falsifying the purchasers’ name, purchase price, down payment and/or subsequent payment amounts. He also constructed concealed compartments in two vehicles that were purchased. He used four bank accounts to deposit cash received from those transactions. On two occasions, Mr. Gomez did not file a Form 8300, a Report of Cash Payments Over $10,000 Received in a Trade or Business. A Form 8300 is required to be filed with the IRS when a cash purchase of more than $10,000 takes place.
This case was investigated by the Bellevue Police Department, Drug Enforcement Administration, Federal Bureau of Investigation, IRS Criminal Investigation, and Omaha Police Department.
Two Defendants Sentenced for Participating in Racketeering Conspiracy with Russian-American Organized Crime Enterprise Operating International Sportsbook That Laundered over $100 MillionRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANATOLY GOLUBCHIK and was sentenced yesterday in Manhattan federal court to five years in prison and VADIM TRINCHER was also sentenced today to five years in prison for participating in a racketeering conspiracy in connection with their roles as members of a Russian-American organized crime enterprise. GOLUBCHIK and TRINCHER were also each ordered to forfeit more than $20 million in cash, investments, and real property. They were charged in April 2013 along with 32 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included racketeering, money laundering, extortion, and various gambling offenses. GOLUBCHIK and TRINCHER were sentenced by U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “The sentences meted out to Anatoly Golubchik and Vadim Trincher are just and appropriate penalties for the roles the defendants played in this far-reaching, Russian-American organized crime ring. I’d like to thank the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service for their tireless efforts in working to ensure that the members of this underground enterprise were held to account for their crimes.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
The Taiwanchik-Trincher Organization (the “Organization”) was a criminal enterprise with strong ties to Russia and Ukraine. The enterprise operated a high-stakes, illegal sports gambling business out of New York City that catered primarily to Russian oligarchs living in Ukraine and Russia. GOLUBCHIK and TRINCHER were U.S.-based participants in the enterprise. GOLUBCHIK and TRINCHER booked sports bets that reached into the millions of dollars and laundered the proceeds of the Organization’s international sportsbook. Between 2006 and April 2012, the enterprise laundered approximately $100 million in proceeds from their gambling operation in Russia and Ukraine through shell companies and bank accounts in Cyprus; and of this $100 million, approximately $50 million was subsequently sent from Cyprus into the United States. Once the money had been transferred to the United States, it was either laundered through additional shell companies or invested in legitimate investments, such as hedge funds and real estate.
The Taiwanchik-Trincher Organization operated under the protection of Alimzhan Tokhtakhounov, who is known as a “Vor,” a term translated as “Thief-in-Law,” that refers to a member of a select group of high-level criminals from the former Soviet Union. Tokhtakhounov used his status as a Vor to resolve disputes with clients of the high-stakes illegal gambling operation with implicit and sometimes explicit threats of violence and economic harm. Between December 2011 and February 2013, Tokhtakhounov was paid at least approximately $12 million for his services by the Taiwanchik-Trincher Organization. Tokhtakhounov is also under indictment in the Southern District of New York for his alleged involvement in bribing officials at the 2002 Winter Olympics held in Salt Lake City, Utah. Tokhtakhounov is a fugitive and is still being sought.
Twenty-eight defendants in this case have pled guilty, and two have entered into deferred prosecution agreements. The defendants who have pled to date have agreed to forfeit, in total, more than $68 million. The following defendants have pled guilty, and have been sentenced or await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013, and was sentenced on November 25, 2013.
- William Barbalat pled guilty to gambling charges on August 14, 2013, and was sentenced on December 16, 2013.
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013, and was sentenced on December 19, 2014.
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013, and were sentenced on January 21, 2014, and January 6, 2014, respectively.
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013, and were sentenced on April 18, 2014, and February 14, 2014, respectively.
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013, and is scheduled to be sentenced on May 1, 2014.
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013, and was sentenced on February 25, 2014.
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013, and is scheduled to be sentenced on June 10, 2014.
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013, and was sentenced on March 25, 2014.
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013, and is scheduled to be sentenced on May 2, 2014.
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013, and was sentenced on April 9, 2014.
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013, and was sentenced on April 30, 2014.
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013, and was sentenced on April 30, 2014.
- Eugene Trincher pled guilty to gambling charges on November 14, 2013, and is scheduled to be sentenced on June 9, 2014.
- Anatoly Golubchik pled guilty to conspiring to commit racketeering on November 15, 2013, and was sentenced on April 29, 2014.
- Illya Trincher pled guilty to gambling charges on November 15, 2013, and is scheduled to be sentenced on May 8, 2014.
- Ronald Uy pled guilty to structuring financial transactions on November 25, 2013, and was sentenced on March 27, 2014.
- Moshe Oratz pled guilty to gambling charges on December 3, 2013, and was sentenced on April 9, 2014.
- Michael Sall pled guilty to interstate travel in aid of an unlawful activity (illegal gambling) and Jonathan Hirsch pled guilty to gambling charges on December 4, 2013. Sall was sentenced on April 18, 2014, and Hirsch is scheduled to be sentenced on May 9, 2014.
- Noah Siegel pled guilty to gambling charges on December 5, 2013, and was sentenced on April 10, 2014.
- Molly Bloom pled guilty to gambling charges on December 12, 2013, and is scheduled to be sentenced on May 2, 2014.
- Alexander Katchaloff pled guilty to gambling charges on January 16, 2014, and is scheduled to be sentenced on May 20, 2014.
- Donald McCalmont, John Jarekci, a/k/a “John Hanson,” and Abraham Mosseri pled guilty to making a fraudulent tax statement, to failing to file a tax return, and causing a financial institution to participate in a lottery related matter, respectively, on January 24, 2014, and are scheduled to be sentenced on May 29, 2014, May 28, 2014, and May 21, 2014, respectively.
- William Edler and Peter Feldman entered into deferred prosecution agreements on April 11, 2014.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter J. Skinner, and Kristy J. Greenberg of the Violent and Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorney Alexander Wilson of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Twenty-Nine Golden Grove Inmates Indicted for Possessing Illegal ContrabandRead the Press Release
St. Croix, USVI – A federal Grand Jury in St. Croix has indicted 29 inmates at the Golden Grove Adult Correctional and Detention Facility for possessing illegal contraband, announced Ronald W. Sharpe, United States Attorney for the District of the Virgin Islands; Vito S. Guarino, Special Agent in Charge of the Drug Enforcement Administration (DEA) Caribbean Division, and Carlos Cases Special Agent in Charge of the Federal Bureau of Investigation (FBI) San Juan Field Division. The indictments were returned by the Grand Jury on April 3, 2014, and 27 of the indictments were unsealed on April 28, 2014. Two indictments remain under seal. Under federal and territorial law, it is illegal for inmates to possess illegal contraband such as weapons, controlled substances and cellular telephones in prison. If convicted, these defendants face between one and five years in prison, and fines of between $200,000 and $250,000 depending on the nature of the contraband possessed.
These indictments are part of an ongoing federal investigation involving the smuggling of illegal contraband into Golden Grove by Correctional Officers, inmates, and others. On April 7 and 8, 2014, federal agents executed federal search warrants on Golden Grove, which authorized the search of inmates’ cells and certain common areas such as the prison yard and workshop areas for illegal contraband, weapons, controlled substances and cellular telephones. As a result of those searches, federal agents seized, among other contraband, approximately 55 weapons (“shanks” and other contraband capable of being used as weapons such as razor blades and scissors), 28 cellular telephones, a cell phone “booster,” and a Sony PlayStation. In addition, illegal drugs were seized from 33 separate cells, along with drug packaging material and other drug paraphernalia.
The indictments unsealed Monday involve contraband seized before the execution of the federal search warrant. Additional inmates could face federal charges based on the seizures made on April 7 and 8.
The following inmates are charged in the indictments unsealed on April 28:
Inmate Name Charged Contraband Ballantine, Warren cell phone Barbel, Al-Ahad cell phone Colbourne, Romal cell phone George, Gregoire shank/knife, cell phone Harrington, Toma marijuana Lettsome, Renell marijuana Martinez, Edwin Velez cell phone Monsanto, Avery marijuana Percival, Shevron cell phone Boyce, Michael shank/knife, cell phone Bramble, Emmet cell phone Elmes, Shamari shank/knife Encarnacion, Rusiel cell phone Ford, Michael cell phone Girard, Paul cell phone, marijuana Lloyd, Calvin cell phone, marijuana Morris, Suhmeid shank/knife, cell phone, marijuana Nisbett, Leon cell phone Simmonds, Jahseen shank/knife, cell phone West, Jameel shank/knife Phillip, Jervern shank/knife, cell phone Sampson, Henry marijuana Samuel, Tishawn shank/knife, cell phone, marijuana Santiago, Andelson shank/knife Smith, Anthon cell phone Stanley, Rodney cell phone Woods, Delroy shank/knife, cell phone“These indictments demonstrate the United States’ ongoing commitment to identify, investigate and prosecute those responsible for possessing and introducing contraband into Golden Grove,” U.S. Attorney Sharpe said. “It is important for the community to have confidence that prison inmates do not have access to weapons or the ability to engage in criminal activity from behind bars.”
“The safety of all inmates and employees is a priority in all correctional facilities. It is imperative that order is maintained inside the prison to prevent crimes from happening both in and outside as well,” said DEA Special Agent in Charge Guarino. “DEA will continue to work closely with other federal and territorial law enforcement and government agencies to reach that goal in the Golden Grove Correctional facility.”
“Illegal contraband in the prison system affects operations and the safety of all correctional facilities' employees,” stated FBI Special Agent in Charge Carlos Cases. “The FBI will continue to support all federal and local authorities in combating illegal contraband in the prison system.”
An indictment is merely a charging document and is not evidence of guilt. A defendant is presumed innocent until proven guilty.
The investigation is being led by the St. Croix DEA High Intensity Drug Trafficking Area (HIDTA) Task Force, which includes officers from the Virgin Islands Police Department (VIPD), with assistance from the FBI. Assisting HIDTA in the April 7 and 8 search were agents from the FBI, the U.S. Marshals Service, Bureau of Alcohol Tobacco Firearms and Explosives, Internal Revenue Service Criminal Investigation Division, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), U.S. Customs and Border Protection, VIPD, and the Virgin Islands National Guard.
Tax Return Preparer Sentenced to Prison for Tax FraudRead the Press Release
ATLANTA - Amberula Levitt, who owned Tax Time Tax Service, a tax preparation business with multiple locations throughout metro Atlanta, has been sentenced to serve one year and nine months in federal prison for committing tax fraud on her own personal tax returns.
“Individuals in the business of preparing tax returns for others should set an example of tax compliance,” said United States Attorney Sally Quillian Yates. “Instead, Levitt used her knowledge and skills of the tax system defraud it. For that, she will be punished.”
“While most preparers provide excellent service to their clients, a few dishonest return preparers give the industry a black eye,” stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. “Return preparers must comply with the same tax obligations as the clients that they serve. No one is above the law.”
According to United States Attorney Yates, the charges and other information presented in court: From 2004 through 2010, Levitt owned and operated Tax Time Tax Service (“Tax Time”), a tax preparation business with multiple locations throughout metro Atlanta. Levitt fraudulently under-reported her earnings from Tax Time on her personal tax returns. For the years 2004 through 2009, Levitt owes approximately $620,000 in back taxes to the IRS.
Levitt has been sentenced by U.S. District Court Judge Amy Totenberg to one year, 9 months in prison to be followed by one year of supervised release, ordered to pay restitution to the IRS in the amount of $620,004, and complete 100 hours of community service. Levitt, 45, of East Point, Ga., was convicted on two counts of filing false tax returns for the 2004 and 2005 tax years, after she pleaded guilty on October 29, 2013.
This case is being investigated by the Internal Revenue Service Criminal Investigation.
Trial Attorney Christopher J. Maietta of the Justice Department’s Tax Division and Assistant United States Attorney Steven D. Grimberg prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Swiss Offshore Tax Evasion Enabler Pleads GuiltyRead the Press Release
Josef Dörig, 72, of Switzerland, pleaded guilty today to conspiring to defraud the Internal Revenue Service (IRS) in connection with his work as the owner of a trust company in Switzerland. Deputy Attorney General James Cole, Assistant Attorney General Kathryn Keneally for the Justice Department’s Tax Division, U.S. Attorney Dana J. Boente for the Eastern District of Virginia and IRS-Criminal Investigation Chief Richard Weber made the announcement after the plea was accepted by U.S. District Judge Gerald Bruce Lee. Dörig was charged in a one count superseding indictment on July 21, 2011. Sentencing is set for Aug. 8, 2014, and Dörig faces a statutory maximum sentence of five years in prison.
“Today’s plea further pulls back the curtain on efforts by Swiss banks to help U.S. taxpayers evade taxes through the use of sham trusts and foundations,” said Deputy Attorney General Cole. “Rest assured, the days of bank secrecy for U.S. tax cheats in Switzerland – and around the world – are numbered.”
“This plea sends a strong message to those who use or help others use offshore bank accounts to evade U.S. taxes,” said Assistant Attorney General Keneally. “We are receiving information from a variety of sources and are committed to investigating and prosecuting this wrongdoing.”
“We will continue to investigate and prosecute banks and individuals who assist U.S. citizens in the evasion of income taxes with overseas accounts,” said U.S. Attorney Boente. “The doors are quickly closing on this illegal activity.”
“Assisting American taxpayers to evade their tax obligations with the use of secret bank accounts held in sham entities violates the law, and we will find those who are doing it,” said Chief of IRS-Criminal Investigation Richard Weber. “IRS-CI will pursue those who use anonymous offshore accounts to avoid paying their fair share. IRS Criminal Investigation is proud to have shared our hallmark expertise in following the money trail in this and other increasingly sophisticated criminal schemes.”
In a statement of facts filed with the plea agreement, Dörig admitted that between 1997 and 2011, while owning and operating a trust company, he engaged in a wide-ranging conspiracy to aid and assist U.S. customers in evading their income taxes by concealing assets and income in secret bank accounts held in the names of sham entities at a financial institution referred to in the superseding indictment as International Bank (IB), one of the biggest banks in Switzerland and one of the largest wealth managers in the world.
According to the statement of facts, from 1972 to 1996, Dörig worked for a subsidiary of IB. The subsidiary formed, managed and maintained nominee tax haven entities. Individuals concealed their assets by holding their accounts at IB in the names of these tax haven entities. During this time, the subsidiary managed and maintained over 100 sham entities for U.S. taxpayers committing tax evasion.
Also included in the statement of facts, in 1997, executives at the subsidiary devised a plan to spin off all of these sham entities into a new trust company, Dörig Partner AG, to be owned and operated by Dörig, who was then an employee of the subsidiary. Dörig was required to make his best efforts to keep the existing accounts at IB open and to ensure that any clients referred to him by IB would open new accounts at that institution.
According to the statement of facts, IB promoted Dörig Partner as a provider of various entity structures. The phone list used in IB’s New York representative office identified Dörig Partner as an external trust expert. Dörig Partner also sublet space from IB in an office tower where a private bank owned by IB was the major tenant.
As part of the conspiracy, Dörig traveled to the United States to introduce himself to new clients he had obtained as part of the spin-off. In the following years, he traveled to the United States with bankers from IB, including his co-defendants Markus Walder, Marco Parenti-Adami and Michele Bergantino, to meet with existing and prospective clients who already had undeclared accounts at IB but had been identified by the IB’s bankers as potential candidates for the use of a structure.
According to the statement of facts, although Dörig ostensibly controlled both the structure and the account at IB, in practice, many of the U.S. taxpayers with undeclared accounts controlled the assets in those accounts by dealing directly with IB bankers, often without either the knowledge or consent of Dörig.
According to the statement of facts, in 2008, IB ordered Dörig Partner to close accounts for the structures they managed. Dörig turned to an asset manager at a financial services firm in Zurich for assistance. The financial services firm maintained a master account in its own name at a private bank in Gibraltar, and then opened sub-accounts for Dörig’s clients at that bank to which Dörig transferred the funds from the clients’ undeclared accounts at IB. The financial services firm provided the Gibraltar bank only with the number associated with each sub-account and did not inform the bank of any information regarding the owners of the assets in the sub-accounts.
This case is being investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Mark D. Lytle and Trial Attorneys Mark F. Daly and Nanette L. Davis of the Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Related Materials:
United States v. Josef Dörig
Statement of FactsState Prison Inmate Charged with Forging A Federal Judge’s SignatureRead the Press Release
PITTSBURGH - An inmate at SCI-Houtzdale, located in Houtzdale, Pa., has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal law, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 29, named Michael Kramer, 30, currently incarcerated in SCI-Houtzdale.
According to the indictment, Kramer forged a federal Judge’s signature on a court order.
The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The United States Marshal’s Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
St. Albans Woman Charged with Stealing Social Security BenefitsRead the Press Release
Charleston, W. Va. - A federal grand jury in Charleston, West Virginia, has returned a single count indictment against Regina Ancion, age 64, of St. Albans, West Virginia for theft of government money. The indictment alleges that Ancion forged social security checks made out to a deceased relative between November of 2006 and November of 2013, with a total loss to the government of more than $80,000. If convicted, Ancion faces a maximum penalty of ten years’ imprisonment, a $250,000 fine, and an order to pay restitution.
The Social Security Administration, Office of the Inspector General conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Squatter Pleads Guilty to Illegally Possessing AmmunitionRead the Press Release
PITTSBURGH – Elanda Bell has pled guilty in federal court to a charge of violating federal firearm laws, United States Attorney David J. Hickton announced today.
Bell, 55, with no known permanent address, pleaded guilty on Monday to one count before Senior United States District Judge Gustave Diamond.
In connection with the guilty plea, the court was advised that between Jan. 3, 2008, and June 29, 2013, Bell possessed ten .41 Caliber cartridges. Bell had previously been convicted of manslaughter and aggravated assault in the Court of Common Pleas of Philadelphia. Federal law prohibits anyone who has been convicted of a crime punishable by more than one year from possessing ammunition or a firearm.
Judge Diamond scheduled sentencing for Aug. 20, 2014, at 11 a.m. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clairton Police Department conducted the investigation that led to the prosecution of Bell.
South Dakota Man Sentenced for Distribution of Child PornographyRead the Press Release
BUFFALO, N.Y.B U.S. Attorney William J. Hochul, Jr. announced today that Jesse Adams, 27, of Rapid City, South Dakota, who was convicted of distribution of child pornography, was sentenced to 144 months in prison by Chief U.S. District Judge William M. Skretny.
Special Assistant U.S. Attorney Carol G. Bridge, who handled the case, stated that the investigation began when an undercover agent in Utah received emails and images depicting child pornography from Adams who is a student attending a local college.
On April 12, 2013, law enforcement officers executed a search warrant at the defendant’s dormitory residence and seized a laptop computer, thumb drive, and a cellular telephone. A forensic examination revealed one video and close to 90 images of child pornography. Some of the images depicted children under 12 years old.
Adams utilized a website called vampirefreaks.com where he met four minor females that he communicated with. At the request of the defendants, some of the minor females sent Adams naked photos of themselves. The defendant also sent naked photos of himself to some of the minor females.
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.
The Complaint is the culmination of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero, Special Agent-In-Charge.