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16 June 2014
District Woman Pleads Guilty to Embezzling over $193,000 in Four-Year Scheme Against Charitable Organization-Used Money for Vacations, Personal Training, Other Personal Expenses-Read the Press Release
WASHINGTON – Maria Herrmann, 53, of Washington, D.C., pled guilty today in the U.S. District Court for the District of Columbia to one count of wire fraud related to her embezzlement of over $193,000 from a charitable organization from 2004 through 2008.
The guilty plea was announced by U.S. Attorney Ronald C. Machen Jr. and Gary R. Barksdale, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service.
Herrmann is to be sentenced on Sept. 4, 2014, before the Honorable James E. Boasberg. On the wire fraud charge, she faces a maximum of 20 years in prison and a $250,000 fine. In addition, as part of her guilty plea, Herrmann agreed to forfeit the amount of her fraudulent proceeds, $193,770, and pay the same amount in restitution to the charitable foundation.
As part of her guilty plea, Herrmann admitted that, between May 2004 and June 2008, she operated an on-line “e-store” with operations meant to raise funds for a non-profit charitable organization. To raise funds, the e-store auctioned various donated goods and services, as well as travel and vacation packages. Herrmann admitted to embezzling over $193,000 by wiring herself funds from the charity’s account, by using the e-store account to pay for personal purchases, and by other means.
Herrmann admitted using the charity’s funds to pay for vacations, personal training, pet care and pet supplies, and gourmet coffee, among other things. Finally, Herrmann admitted disguising her embezzlement from the charity by underreporting the e-store’s revenue.
In announcing the plea, U.S. Attorney Machen and Inspector in Charge Barksdale expressed appreciation for the work done by those who investigated the case from the U.S. Postal Inspection Service. They also commended the work of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialists Krishawn Graham and Donna Galindo, and Assistant U.S. Attorney Jonathan Hooks, who investigated and prosecuted the case.
14-138Court Bars Miami Tax Return Preparers from Preparing Returns for OthersRead the Press Release
A federal district judge in the U.S. District Court for the Southern District of Florida permanently barred Lazaro Jesus Toyos and his daughter Dilma Carida Garcia, aka Dilma Toyos Garcia, and their respective companies, L. Toyos Tax Service Inc. and Toyos Garcia Tax Service Inc., from preparing federal income tax returns for others, the Justice Department announced today.
The suit alleges that the defendants prepared thousands of tax returns and unlawfully understated income tax liabilities and overstated refunds by fabricating and/or exaggerating deductions and tax credits their clients were not eligible to take. The defendants’ practices, as alleged, include fabricating Schedule C losses for non-existent businesses, falsely claiming the First Time Homebuyer Credit for taxpayers who did not actually purchase a home and falsely claiming American Opportunity Credits for taxpayers who did not acquire education expenses or attend college. The government alleged that loss to the U.S. Treasury from the defendants’ activities may be in the millions of dollars.
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. Lazaro Jesus Toyos, et al.
Permanent Injunction Against Defendant Lazaro Jesus Toyos and Defendant L. Toyos Tax Services, Inc., Submitted By Stipulation and Consent
Permanent Injunction Against Defendant Dilma Carida Garcia, AKA Dilma Toyos Garcia, and Defendant Toyos Garica Tax Service, Inc., Submitted By Stipulation and ConsentCharleston Man Pleads Guilty in Federal Court to Selling OxycodoneRead the Press Release
Charleston, W.Va. – Daniel B. Moore, age 60, of Charleston, West Virginia pled guilty today before U.S. District Judge John T. Copenhaver, Jr., to aiding and abetting the distribution of oxycodone. During the plea hearing, Moore admitted that on February 25, 2013, he assisted in the sale of 47 oxycodone pills, also called “roxycodone,” for $1,600 to a confidential informant working with the Metro Drug Unit. The drug deal took place at Moore’s home on Kirkwood Drive in Charleston. Following the drug deal, police searched Moore’s home where they retrieved the money that the confidential informant had used to buy the drugs. Police also found more oxycodone pills intended for distribution in the Charleston area. Moore faces up to 20 years imprisonment and a $1,000,000.00 fine when he is sentenced on September 15, 2014.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Casino Owner Sentenced in New Jersey to 46 Months in Prison for Evading Nearly $1.3 Million in Income Taxes from Trinidad CasinoRead the Press Release
TRENTON, N.J. – The owner of several New Jersey businesses was sentenced today to46 months in prison for evading taxes on income from his ownership of a casino in Trinidad, costing the United States approximately $1.3 million in tax losses, U.S. Attorney Paul J. Fishman announced.
David Migliore, 51, of Brielle, N.J., previously pleaded guilty before U.S. District Judge Mary L. Cooper to one count of an indictment charging him with evading taxes with respect to his 2011 personal tax return. Judge Cooper imposed the sentence today in Trenton federal court.
According to the documents filed in this case and statements made in court:
Migliore owns Brielle Investment LLC, Brielle Investments & Management Co. LLC and La Soufriere Maritime Inc. – all headquartered in New Jersey – as well as Island Club Casino in Trinidad.
From 2009 to 2011, Migliore earned millions of dollars from Island Club Casino, resulting in $1,286,657 in taxes due. During that time, Migliore took steps to conceal his income and assets from the IRS. At his guilty plea proceeding, Migliore admitted to using unreported bank accounts in Trinidad to deposit personal income, using U.S. bank accounts in the names of his New Jersey business entities to receive income from Island Club Casino and to using those business entities to pay for personal expenses.
Migliore also admitted to transferring income from Island Club Casino directly to vendors in the U.S. for personal expenses and directing Island Club Casino employees to send his income through Western Union to individuals in New Jersey who collected the cash on his behalf.
In addition to the prison term, Judge Cooper sentenced Migliore to serve three years of supervised release. As part of his guilty plea and sentence, Migliore also has paid restitution of $1,286,657 to the IRS.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark; and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Andrew M. McLees in Newark; as well as law enforcement officers from the Monmouth County Prosecutor’s Office, under the direction of Acting Monmouth County Prosecutor Christopher J. Gramiccioni; police officers from Wall Township Police Department, under the direction of Chief Robert Brice; and international assistance from the Financial Intelligence Unit for Trinidad & Tobago, with the investigation. U.S. Attorney Fishman also thanked the Department of Justice’s Office of International Affairs for assistance provided.
The government is represented by Assistant U.S. Attorney Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
14-218
Defense counsel: Robert Weir Esq., Red Bank, N.J.Buffalo Man Pleads Guilty to Robbery and Extortion ChargesRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Kashika Speed, 41, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to robbery and conspiracy to commit robbery and extortion of assets. The charges carry a maximum penalty of 20 years in prison, a fine of $250,000, or both.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant and others conspired to commit the robbery of cocaine and U.S. currency from a victim, who was an individual involved in the distribution of cocaine in the Western District of New York. During the robbery, Speed and others went to the victim’s residence in Buffalo, restrained the victim, brandished a firearm, and threatened to kill the victim if he did not provide cocaine to the defendant and his accomplices. As a result, the victim made a phone call to one of his associates, and arranged for two kilograms of cocaine to be provided to the defendant and the others. After receiving the cocaine, Speed and the others released the victim.
“This case demonstrates that in our continuing efforts to remove violent predators from the streets, law enforcement will prosecute even those who would prey upon others engaged in criminal behavior,” said U.S. Attorney Hochul. “This in turn benefits our community as a whole because, in this case alone, the defendant will likely serve substantial jail time and will no longer be a threat to residents.”
Sentencing is scheduled for September 29, 2014, at 1:30 p.m. before Judge Arcara.
The plea is the culmination of an investigation on the part of the FBI Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.Bay Area Man Sentenced to Prison for Investment FraudRead the Press Release
SACRAMENTO, Calif. — Alfred John Schlette, 60, of San Ramon, was sentenced today in San Francisco by Chief United States District Judge Claudia Wilken of the Northern District of California to three years and five months in prison for mail fraud, United States Attorney Benjamin B. Wagner announced. Schlette was also ordered to pay $1.7 million in restitution to more than 10 victims.
According to court documents, Schlette told individuals that they could invest funds with him that would be pooled and used for day trading. Schlette sent his investors monthly statements showing a significant return on each individual's investment. In truth, Schlette never invested any of the money, using the funds on personal expenses. The monthly statements he generated and sent to investors were from an educational stock trading tool and had no connection to any actual investments.
This case was the product of an investigation by the Federal Bureau of Investigation and the Contra Costa County Sheriff's Department. The United States Attorney's Office for the Northern District of California was recused from the case. Assistant United States Attorney Jared C. Dolan from the Eastern District of California prosecuted the case in the United States District Court for the Northern District of California.Alleged Associate of “NullCrew” Arrested on Federal Hacking Charge Involving Cyber Attacks on Companies and UniversitiesRead the Press Release
CHICAGO — A Tennessee man was arrested and charged with federal computer hacking for allegedly conspiring to launch cyber attacks on two universities and three companies since last summer, federal law enforcement officials announced today. The defendant, TIMOTHY JUSTIN FRENCH, is allegedly associated with a group of individuals, known as “NullCrew,” who have claimed responsibility for dozens of high-profile computer attacks against corporations, educational institutions, and government agencies.
French, 20, was arrested without incident by FBI agents at his home in Morristown, Tenn., east of Knoxville, last Wednesday. He waived a detention hearing today in Federal Court in Knoxville, and will be transferred in custody to face prosecution in U.S. District Court in Chicago, where no court date has yet been scheduled. French was charged with conspiracy to commit computer fraud and abuse in a criminal complaint that was filed under seal on June 3 and was unsealed upon his arrest.
French, also known as “Orbit,” “@Orbit,” “@Orbit_g1rl,” “crysis,” “rootcrysis,” and “c0rps3,” and members of NullCrew allegedly launched computer attacks that resulted in the release of computer data and information, including thousands of username and password combinations.
“Cyber crime sometimes involves new-age technology but age-old criminal activity ― unlawful intrusion, theft of confidential information, and financial harm to victims,” said Zachary T. Fardon, United States Attorney for the Northern District of Illinois. “Hackers who think they can anonymously steal private business and personal information from computer systems should be aware that we are determined to find them, to prosecute pernicious online activity, and to protect cyber victims.”
According to the complaint affidavit, NullCrew has used Twitter accounts to announce dozens of attacks against various victims, including the websites of two organizations in July 2012 and eight computer servers belonging to a large company in September 2012. In both instances, the announcements included links to posts on Pastebin, a website that allows uploading of text files for others to view, containing usernames and passwords associated with those victims. In November 2012, NullCrew announced an attack on a foreign government’s ministry of defense, releasing more than 3,000 usernames, email addresses, and passwords purportedly belonging to members of the defense ministry.
The affidavit states that the FBI has been working with a confidential witness who was invited to join online chats with members of NullCrew. During these chats, which occurred through Skype, Twitter, and CryptoCat, Nullcrew members discussed past, present, and future computer hacks, shared current computer vulnerabilities and planned target, and discussed releases of their victims’ information. The witness has assisted with the investigation primarily in an effort to help the FBI, the affidavit states.
The complaint charges French with involvement in five cyber attacks launched by NullCrew: a July 19, 2013, attack on University A, a large public university; a Feb. 1, 2014, attack on Company A, a large Canadian telecommunications company; attacks in early 2014 against University B and California-based Company B, both announced by NullCrew on April 20, 2014 as part of a series of hacking attacks; and an attack against Company C, a large mass media communications company, that NullCrew announced on Feb. 5, 2014.
In each of these instances, information allegedly hacked from the victims’ computers was released by NullCrew and caused significant financial damages to the universities and companies, including the costs of responding to the computer intrusions, conducting damage assessments, and restoring the computer systems.
During each of the attacks, the investigation identified a computer user named “Orbit,” who was using an internet protocol (IP) address assigned to French’s Morristown, Tenn., address. Records from the victims’ computers show access from the same IP address at or around the time the attacks were being discussed or occurred, according to the complaint.
The computer hacking charge in this case carries a maximum sentence of 10 years in prison and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and charge were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The investigation is continuing, they said.
The government is being represented by Assistant U.S. Attorney William Ridgway.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Additional Charges Filed Against Former Jackson Attorney Clay Mccormack for Bank Fraud, Making False StatementsRead the Press Release
Jackson, TN – A superseding indictment was returned today by a federal grand jury against Clay McCormack, 49, of Jackson, TN, for his role in a scheme to fraudulently obtain loan proceeds from federally insured mortgage lenders, announced U.S. Attorney Edward L. Stanton III.
McCormack was initially charged in March, 2013 with two counts each of bank fraud and making false statements. The superseding indictment adds additional bank fraud and making false statements charges and alleges that as early as October 2007, McCormack entered into a criminal conspiracy with James Lee Bishop, a local real estate investor. Bishop would recruit individuals or limited liability companies to purchase real property for the purpose of investment. While acting as the closing attorney for Teel, McCormack and Maroney, a law firm in Jackson, TN, McCormack would indicate on the HUD-1 reporting documentation that certain lenders were paid off via check as a result of the closing. He would then void those checks, or have others void the checks, within days and reissue the checks to Bishop.
This money was then used by Bishop to provide the funds at closing on behalf of the borrowers, who would not have otherwise qualified for the loan. The paperwork would fraudulently reflect that the funds had actually been provided by the borrowers.
The superseding indictment charges McCormack with seven counts of bank fraud and six counts of making false statements. The bank fraud charges allege that McCormack defrauded the First State Bank, First South Bank, and Community Bank by conducting real estate closings and failing to pay off the original mortgages, while the false statement charges allege that he created false documentation and submitted it to the banks in furtherance of his crime.
McCormack’s co-conspirator, James Lee Bishop, pled guilty to bank fraud in February 2014. His sentencing hearing is set for August 29, 2014 before District Judge S. Thomas Anderson.
McCormack faces up to 30 years in prison and a one million dollar fine for each of the seven bank fraud counts; and up to five years in prison and a $250,000 fine for each of the six counts of making false statements.
This case was investigated by the FBI Memphis – Jackson Resident Agency, the Federal Deposit Insurance Corporation, and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Victor L. Ivy and Matthew J. Wilson on behalf of the government.The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Additional Charges Filed Against Former Jackson Attorney Clay Mccormack for Bank Fraud, Making False StatementsRead the Press Release
Jackson, TN – A superseding indictment was returned today by a federal grand jury against Clay McCormack, 49, of Jackson, TN, for his role in a scheme to fraudulently obtain loan proceeds from federally insured mortgage lenders, announced U.S. Attorney Edward L. Stanton III.
McCormack was initially charged in March, 2013 with two counts each of bank fraud and making false statements. The superseding indictment adds additional bank fraud and making false statements charges and alleges that as early as October 2007, McCormack entered into a criminal conspiracy with James Lee Bishop, a local real estate investor. Bishop would recruit individuals or limited liability companies to purchase real property for the purpose of investment. While acting as the closing attorney for Teel, McCormack and Maroney, a law firm in Jackson, TN, McCormack would indicate on the HUD-1 reporting documentation that certain lenders were paid off via check as a result of the closing. He would then void those checks, or have others void the checks, within days and reissue the checks to Bishop.
This money was then used by Bishop to provide the funds at closing on behalf of the borrowers, who would not have otherwise qualified for the loan. The paperwork would fraudulently reflect that the funds had actually been provided by the borrowers.
The superseding indictment charges McCormack with seven counts of bank fraud and six counts of making false statements. The bank fraud charges allege that McCormack defrauded the First State Bank, First South Bank, and Community Bank by conducting real estate closings and failing to pay off the original mortgages, while the false statement charges allege that he created false documentation and submitted it to the banks in furtherance of his crime.
McCormack’s co-conspirator, James Lee Bishop, pled guilty to bank fraud in February 2014. His sentencing hearing is set for August 29, 2014 before District Judge S. Thomas Anderson.
McCormack faces up to 30 years in prison and a one million dollar fine for each of the seven bank fraud counts; and up to five years in prison and a $250,000 fine for each of the six counts of making false statements.
This case was investigated by the FBI Memphis – Jackson Resident Agency, the Federal Deposit Insurance Corporation, and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Victor L. Ivy and Matthew J. Wilson on behalf of the government.The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
15 June 2014
Michigan Man Sentenced to 40 Years for Sexting with Teenage GirlRead the Press Release
GRAND RAPIDS, MICHIGAN – Derik Eugene Rothrock, 35, of Sturgis, Michigan, who pled guilty in federal court in March to receiving sexually explicit cell phone photos of a 15-year-old West Michigan girl, was sentenced on July 14 to a term of imprisonment of 40 years followed by a lifetime of supervised release, U.S. Attorney Patrick A. Miles, Jr. announced today. In exchange for his guilty plea, the U.S. Attorney’s Office dismissed four counts of enticing three children to produce child pornography of themselves using their cell phones, and one count of possessing child pornography.
The federal penalty for receiving child pornography is usually a mandatory minimum of five years’ imprisonment and a maximum of 20. However, Rothrock faced an enhanced sentence of 15 to 40 years because he has a prior conviction for Criminal Sexual Conduct, Second Degree (Person under 13) in the 15th Circuit Court in Coldwater, Michigan. Shortly after his release from state prison on that offense, he violated parole by having inappropriate contact with children, including a sexual relationship, for which he was returned to prison. In July 2013, he met three West Michigan girls – ages 12, 14, and 15 – over a long weekend, sexually abused two of them, and convinced all of them to send him sexually explicit photos of themselves over text messages. Rothrock, then 34 years old, used a fake name and Facebook page with all three victims and told them he was either 19 or 21 years old.
In pronouncing the sentence, U.S. District Judge Janet T. Neff stated that Rothrock’s “life has been out of control pretty much his entire life,” and “the longer we can keep him away from society, and young girls in particular, the better.” In denying Rothrock’s request for a below-guideline sentence based on his own history of being sexually abused as a child, the judge emphasized the need for individualized deterrence. “In terms of receipt of child pornography cases being scaled from 1-10, this one is a 10 or more. I do not think I have seen a receipt of child pornography case more serious than this one,” explained the judge.
U.S. Attorney Miles said, “We are pleased Mr. Rothrock can no longer prey on vulnerable children, kill their innocence, and steal more childhoods. This U.S. Attorney’s Office is committed to aggressively fighting child predators who use technology and social media for evil.”
The case was jointly investigated by the Township of Kalamazoo Police Department, Michigan State Police, Federal Bureau of Investigation, Kalamazoo County Prosecutor’s Office, and the U.S. Attorney’s Office. Assistant U.S. Attorney Tessa K. Hessmiller prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney's Office; county prosecutor's offices; the Internet Crimes Against Children task force (ICAC); the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html
END
13 June 2014
Week in Review - South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Jose Mario Sanchez, 40, of Goshen, Indiana pled guilty to the felony offense of conspiring to distribute cocaine. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency. Sentencing has been set for 9/11/2014. This case is being prosecuted by Assistant United States Attorney Frank Schaffer.
- Melvin Darnell White, 26, of South Bend, Indiana pled guilty to the felony offense of being a felon in possession of a firearm. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the South Bend Metro Special Operations and St. Joseph County Metro Homicide Unit. Sentencing has been set for 9/16/2014. This case is being prosecuted by Assistant United States Attorney William Grimmer.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION
- Brittany Coburn, 24, of LaPorte, Indiana was sentenced to 1 year supervised probation and 100 hours community service after pleading guilty to the misdemeanor offense of obstructing the mail. According to documents filed in this case, Coburn was hired as a mail carrier in LaPorte, Indiana, in September 2013. In October 2013, she abandoned a large quantity of mail in several locations behind a baseball field. The mail she abandoned included approximately 514 items, of which approximately 237 were first class mail. This mail was addressed to 152 different individuals. Coburn lied about her conduct but ultimately admitted it when confronted. This case was the result of an investigation by United States Postal Service – Office of the Inspector General. This case was prosecuted by Assistant United States Attorney Jesse Barrett.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS
- Fayez Abdallah, 69, of Chicago, Illinois pled guilty before District Judge Rudy Lozano to the felony offense of wire fraud in a scheme to defraud the Indiana SNAP program. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Department of Agriculture (USDA). This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
- Amjad Muhamad, 38, of Chicago, Illinois pled guilty before District Judge Rudy Lozano to the felony offense of wire fraud in a scheme to defraud the Indiana SNAP program. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Department of Agriculture (USDA). This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
- Ashraf Muhamad, 41, of Oak Lawn, Illinois pled guilty before District Judge Rudy Lozano to the felony offense of wire fraud in a scheme to defraud the Indiana SNAP program. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Department of Agriculture (USDA). This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
- Yousef Muhamad, 44, of Chicago, Illinois pled guilty before District Judge Rudy Lozano to the felony offense of wire fraud in a scheme to defraud the Indiana SNAP program. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Department of Agriculture (USDA). This case is being prosecuted by Assistant United States Attorney Diane Berkowitz.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Israel Castro, 25, of Mexico was sentenced to 4 months imprisonment after pleading guilty to the felony offense of entry of alien at improper time or place. This case was the result of an investigation by the Bureau of Immigration & Customs Enforcement (ICE). This case was prosecuted by Assistant United States Attorney Thomas McGrath.
- Natisha Hillard, 25, of Gary, Indiana was sentenced to 292 months imprisonment, followed by supervised release for life after pleading guilty of sale of a child by a parent for production of child pornography and sexual exploitation and permitting a child by a parent to participate in the production of child pornography. The investigation of this case began on February 13, 2013 when a third party contacted the FBI and reported that Bour had invited her to watch him sexually abuse a child. Bour’s home was searched later that day and child pornography was found, but Bour adamantly denied sexually abusing any children and claimed his texts with the third party were “fantasy” and “role playing.” Nine days later, law enforcement found depictions of Bour sexually abusing an infant on his computer and noted the presence of an adult female, later identified as Natisha Hillard. Hillard was interviewed later that day admitted that Bour had paid her a total of approximately $500 in exchange for her allowing him to sexually abuse her youngest child on several different occasions. Hillard signed a plea agreement with the government and agreed to testify against Bour. Prior to Hillard’s sentencing, the government filed a motion pursuant to United States Sentencing Guideline Section 5K1.1 and Title 18, United States Code, Section 3553(e) asking the Court to give Hillard credit for her substantial cooperation in the case. This case was the result of an investigation by the Indiana Internet Crimes Against Children Task Force, including the Federal Bureau of Investigation (FBI), the Indiana State Police, the Gary Police Department and the Michigan City Police Department. This case was prosecuted by Assistant United States Attorney Jill Koster.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
DISPOSITIONS
- Scott Robb, 44, of West Chester, Ohio was sentenced to time served, 2 years supervised release and ordered to pay $197,770.06 in restitution after pleading guilty to the felony offense of theft of property of the Veterans Administration Medical Center (VAMC) and misdemeanor offense of introduction into interstate commerce of stolen medical devices that were misbranded. According to documents both filed in this case and information made public during the prosecution, in August 2010 Northern Indiana Veterans Administration Police Chief reported that four Olympus scopes were reported missing and possibly stolen from the Endoscopy Department at the Fort Wayne, Indiana VAMC. Olympus service records showed that Robb was at the Fort Wayne VAMC on 7/1/2010 for a service call. Investigators learned that in May 2010, in Ohio, Veterans Administration Police Chief reported that two Olympus endoscopes had been missing since 4/1/2010 and were last used in between April 2009 and March 2010. A third missing scope was identified during further review, which was last used in March 2010. A fourth scope was identified as missing on 8/17/2010 and was believed to be missing as long as the previous three. The value of the prescription medical devices range between $25,775.36 and $28,102.30 and the loss to Ohio VAMC totaled $108,670.06. According to the investigation, Robb stole the medical devices and sold them to an individual in Mexico and the information was discovered after one of the stolen devices that had been sold was found in a medical facility in Nebraska and traced back to the VAMC. This case was the result of an investigation by the Department of Veteran’s Affairs, Office of the Inspector General and the United States Food and Drug Administration. This case was prosecuted by Assistant United States Attorney Tina L. Nommay.
- Darwin Altamirano, 31, of Fort Wayne, Indiana, was sentenced to 12 months imprisonment with time served and given 1 year supervised released after pleading guilty to the felony offense of withholding information on a crime. According to documents filed in this case, between July 2011 and February, 2013, Altamirano concealed cocaine within a vehicle used to transport it intended for distribution by another. This case was the result of an investigation by the FBI Fort Wayne Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Fort Wayne Safe Streets Task Force is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department, and IMAGE Drug Task Force assisted with this investigation. This case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
Waterloo Convenience Store Manager Pleads Guilty to Distributing Synthetic Drug Known as "Bath Salts"Read the Press Release
Earl James Ramos, age 26, from Waterloo, Iowa, who managed a convenience store in Waterloo where he sold synthetic drugs commonly known as “bath salts” pled guilty today in federal court in Cedar Rapids.
Ramos was convicted of distributing pentedrone, an illegal controlled substance analogue under federal law. The term “controlled substance analogue” refers to substances that are chemically similar to, and have substantially similar or greater effects on humans than substances in Schedule I or II. “Controlled substance analogues” are illegal under federal law if intended for human consumption. Pentedrone is in the class of substances commonly referred to as “bath salts,” and is a synthetic form of the Schedule I stimulant methcathinone.
At the plea hearing, Ramos admitted he distributed pentedrone to another person in Waterloo on October 2, 2012. He also admitted he knew the pentedrone was intended to be used for human consumption.
According to information in the public court record, Ramos was the manager of the Five Star Snacks and I-Wireless store in Waterloo, Iowa. Beginning in at least 2012, Ramos began selling synthetic controlled substances from the Five Star Snacks store and in other locations, upon request of certain customers. The synthetic controlled substances included synthetic cannabinoids (commonly referred to as “K2,” “incense,” “potpourri,” “Spice,” among other names) and synthetic cathinones (commonly referred to as “bath salts”). sold synthetic cannabinoid products with the “brand” names of Mr. Nice Guy, KMA, 101, Caution, California Dreams, Diablo, Hydro Kush, King Kong, Mr. Happy, Insane, and Hydro 777. Ramos sold synthetic cathinones under the “brand” names of “Diamond,” White Angel,” “Pump It,” and “Blue.” The substance contained in the containers of “Diamond” and “Pump It” was pentedrone. The substances contained in the containers of “Blue” were α-PVP. As of May 16, 2013, α-PVP became a Schedule I controlled substance.
Court records also reflect that in May 2012 law enforcement seized “K2” products from the store. At some point after this seizure, the store again began to sell the products, but kept them hidden from view and only sold to known individuals.
Ramos’s store and residence in Waterloo were searched in June 2013. During the search, officers seized a total of 1294 packets of suspected synthetic cannabinoids and 418 units of suspected synthetic cathinones. Ramos was again told by officers not to sell the synthetic controlled substances because it was against the law to do so. Court records reflect that Ramos initially stopped selling synthetic controlled substances from Five Star Snacks. In at least November 2013, however, Ramos again began selling the synthetic controlled substance products from the Five Star Snacks and I Wireless. On December 23, 2013, January 3, 2014, and February 10, 2014, members of DNE and TCDETF again conducted controlled purchases of “bath salts” from Ramos at the Five Star Snacks/I Wireless in Waterloo, Iowa.On March 10, 2014, officers again conducted search warrants at Ramos’s residence and the Five Star Snacks and I Wireless. During the searches, officers seized 19 packages of synthetic cannabinoids labeled “Diablo Platinum” and 87 containers of “Blue.” Some of the packages of “Diablo Platinum” were located on a shelf in plain view on a shelf in the office area of the Five Star Snacks. Officers also found Ramos’s loaded, 9 mm Ruger pistol on top of some cigar boxes within arm’s reach of the Diablo Platinum. The “Diablo Platinum” was sent to the DCI laboratory, which determined the substance contained in the packages was XLR-11, a Schedule I controlled substance. In all, officers found approximately 59.48 grams of XLR-11 in Ramos’s possession on March 10, 2014. The DCI laboratory also determined that the containers of “Blue” (both purchased during the controlled buys and seized by officers during the March 10 search) contained approximately 32.0255 grams of the Schedule I Controlled Substance α-PVP.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Ramos was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Ramos faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and up to a lifetime term of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Dan Chatham and was investigated by as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Tri-County Drug Enforcement Task Force; the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; the Iowa Division of Narcotics Enforcement; and the Sixth Judicial District Department of Correctional Services; the Federal Bureau of Investigation; the Department of Homeland Security; and the Internal Revenue Service.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR14-2014-1-LRR.
Two Members of Holland Latin Kings Convicted of RacketeeringRead the Press Release
Conviction Follows Ten-Day Jury Trial
GRAND RAPIDS, MICHIGAN – A federal jury convicted David Casillas and Antonio Rios, both of Holland, Michigan, of racketeering and cocaine conspiracies today. Both defendants were charged, along with 29 other defendants, with conspiracy to engage in racketeering activity (“RICO”) for their roles in a violent, drug-trafficking street gang known as the Holland Latin Kings. The jury found sufficient proof the racketeering activity of both defendants involved at least 5 kilograms of cocaine; but the jury found insufficient proof that Rios committed two assaults with intent to murder that were not alleged against Casillas. The other count of conviction related to a separate conspiracy to distribute more than five kilograms of cocaine. Defendant Rios was acquitted of a separate marijuana conspiracy charge. Each defendant faces a maximum sentence of life imprisonment, with a mandatory minimum sentence of ten years in prison. Sentencing is scheduled for October 14, 2014.
The case resulted from a two-year grand jury investigation. The U.S. Attorney’s Office for the Western District of Michigan was assisted in the investigation by the Holland Police Department; the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Ottawa County Prosecutor’s Office; the Ottawa County Sheriff’s Department; the Michigan State Police; the West Michigan Enforcement Team (WEMET); the Michigan Department of Corrections; and the Kerr County, Texas, Sheriff’s Department. The other 29 defendants had already pled guilty to their roles in the racketeering conspiracy.
U.S. Attorney for the Western District of Michigan Patrick Miles, Jr. remarked, “The successful federal prosecutions of the 31 defendants associated with the Holland Latin Kings is the result of an effective collaboration among a variety of local and federal law enforcement and prosecution agencies. Working together we achieved a positive result for the Holland community.”
ATF Special Agent in Charge Steven J. Bogdalek said, “These guilty convictions show that collaborative law enforcement partnerships work in targeting violent gangs and have an impact on reducing violent crime. ATF is always honored to work with the Holland Police Department, WEMET/MSP, Ottawa County Sheriff’s Office, Michigan Department of Corrections and the Kerr County Texas Sheriff’s Office.”
Holland Police Chief Matt Messer noted “We are pleased with outcome of this lengthy investigation that has had a substantial positive impact on the Holland area and has solved crimes reaching back over the last three decades. And we appreciate the local and federal collaboration on this case that resulted in the successful prosecution of 31 high ranking members of the Latin Kings gang.”
Ottawa County Sheriff Gary Rosema added that “The Ottawa County Sheriff’s Office is also very pleased with the outcome of this investigation and the verdict that has been rendered as it relates to Luis Rios and David Casillas. We are hoping that our communities understand and appreciate the priority that has been placed on this investigation and prosecution, as this is important in making our communities a safe place to live and visit.”
This case was prosecuted by Assistant U.S. Attorneys Russell A. Kavalhuna and Phillip J. Green.
END
Three Gang Members Sentenced to Decades in Prison for Taking Part in Conspiracy That Led to Murders, Shootings and Other Violence-One Murder Took Place Outside A Funeral in Northwest Washington-Read the Press Release
WASHINGTON – Three members of a criminal street gang based at 14th and Girard Streets in Northwest Washington were sentenced today to decades-long prison terms on murder and other charges stemming from a conspiracy to assault, kill, and threaten their rivals and obstruct justice.
The sentences, in the Superior Court of the District of Columbia, were announced by U.S. Attorney Ronald C. Machen Jr., Cathy L. Lanier, Chief of the Metropolitan Police Department, and Robert D. MacLean, Acting Chief of the U.S. Park Police.
The defendants, all from Washington, D.C., include Robert Givens, 21; Lester Williams, 26, and Marcellus Jackson, 25. A fourth defendant, Keir Johnson, 24, will be sentenced at a later date.
The men were found guilty in March 2014, following nearly four months of trial. Givens, Johnson and Williams were found guilty of murder and other offenses. Jackson was found guilty of murder, conspiracy, assault with a dangerous weapon, and related offenses.
The Honorable Lynn Leibovitz sentenced Givens to 30 years in prison; Williams to 47 ½ years of incarceration; and Jackson to a 38-year prison term.
The 14th and Girard gang, also known as G-Rod, 1-4, and the Cut Crew, was centered in the areas of 14th and Girard and 14th and Fairmont Streets NW. The group was engaged in a longstanding conflict with rival crews, especially ones that were based in the areas of 17th and Euclid Streets NW and the 600 block of Morton Street NW. The gang’s victims included Sean Robinson, 18, who was killed in the parking lot of a school in August 2010, and Jamal Coates, 21, who was killed following a funeral in September 2010.
Givens was found guilty of second-degree murder while armed in the slaying of Mr. Robinson, as well as a charge of assault with a dangerous weapon involving a second victim shot at the scene. He also was found guilty of conspiracy, firearms offenses, and charges that he committed the crimes for the benefit of a criminal street gang.
Johnson and Williams were each found guilty of first-degree murder while armed in the killing of Mr. Coates. They also were found guilty of assault with intent to kill in the shooting of another individual in that attack, as well as assault with a dangerous weapon for firing upon a third person that day. Johnson and Williams also were found guilty of conspiracy, firearms offenses, and charges that they committed the crimes for the benefit of a criminal street gang. Finally, Johnson also was found guilty of a charge of assault with intent to kill while armed stemming from a separate attack in June 2010 in which a man was wounded.
In addition to conspiracy, Jackson was found guilty of second-degree murder in the slaying of Mr. Coates, assault with a dangerous weapon involving an attack against one of the individuals with Mr. Coates, and charges that he committed the offenses for the benefit of a criminal street gang.
According to the government’s evidence, the shootings resulted from a longstanding conflict with rival crews. The government presented evidence of these and other crimes:
June 27, 2010: Johnson chased, shot, and attempted to kill a rival crew member in the parking lot of a gas station in the 3400 block of Georgia Avenue NW.
Aug. 11, 2010: Givens and others committed the murder of Mr. Robinson, who lived in the area of 17th and Euclid Streets, as well as the shooting of two 14-year-olds who were with him while they stood together in the parking lot of a school in the 2600 block of Mozart Street NW.
Sept. 28, 2010: Johnson and Williams committed the murder of Mr. Coates, a rival crew member, near 13th and U Streets NW, during the funeral procession for a young female with family ties to the rival crew. In addition to shooting Mr. Coates, Williams and Johnson shot a second person in the attack and fired upon a third individual. Jackson provided assistance to Johnson and Williams.
After the funeral shooting, the defendants took many steps to attempt to obstruct justice and avoid prosecution, such as trying to find and locate witnesses and in the case of two of the defendants, fleeing to North Carolina.
The men were indicted in December 2011, following an investigation by the Metropolitan Police Department, the U.S. Park Police, and the Drug Enforcement Administration. Two other members of the crew earlier pled guilty to charges stemming from their violent conduct.
In announcing the sentences, U.S. Attorney Machen, MPD Chief Lanier, and Acting U.S. Park Police Chief MacLean thanked those who investigated the case from theMPD, the Park Police, and the DEA. They also expressed appreciation for the assistance provided by the U.S. Marshals Service; the FBI/MPD Safe Streets Task Force; the U.S. Postal Inspection Service; the FBI Cellular Analysis Survey Team; the FBI Digital Forensic and Analysis Section; the U.S. Secret Service Forensic Sciences Division; the District of Columbia Department of Corrections Office of Investigative Services; the District of Columbia Department of Forensic Sciences; the Washington D.C./Baltimore High Intensity Drug Trafficking Area; the Alexandria, Va. Police Department; the Marlboro County, S.C. Sherriff’s Office, and the Miami-Dade County State’s Attorney’s Office. They also acknowledged the assistance of Bruce Budowle, PhD, executive director of the University of North Texas Health Science Center’s Institute of Investigative Genetics.
They expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including former Assistant U.S. Attorneys Sharad Khandelwal and Joseph P. Cooney, who helped secure the indictment; Assistant U.S. Attorney Kacie Weston, who assisted with trial preparation; Assistant U.S. Attorneys Chrisellen Kolb and David Goodhand who assisted with legal analysis; and Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation. In addition, they acknowledged the work of Legal Assistants Kendra Johnson, Marian Russell, Sharon Newman, Kwasi Fields, Philip Aronson, and Benjamin Kagan-Guthrie; former Intelligence Analyst Lawrence Grasso; Intelligence Analyst Zachary McMenamin; Information Technology Specialist Leif Hickling; Victim/Witness Security Specialists Michael Hailey, M. Laverne Forrest, Debra Cannon, Tanya Via, and Katina Adams; Victim/Witness Advocate Marcia Rinker; and Criminal Investigators Durand Odom, Tommy Miller, Mark Crawford, and Christopher Brophy.
Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Todd Gee, Emily Miller, Laura Bach, and Deborah Sines, who prosecuted the case.
14-136Statement by Attorney General Holder on the Passing of Ruby DeeRead the Press Release
WASHINGTON, DC – U.S. Attorney General Eric Holder released the following statement Friday on the passing of actress Ruby Dee:
“I was deeply saddened to learn of the passing of Ruby Dee – a legendary actress and a lifelong champion for civil rights and social justice.
“Rising from humble origins to the heights of stardom, Ruby Dee broke down barriers and left her mark from Harlem, to Broadway, to Hollywood and far beyond. She was also an extraordinary role model for generations of Americans – and particularly for African-American women and girls – during a time when black stars were rare on both stage and screen.
“Tellingly, she was never content merely to advance her own remarkable career, lending her voice and her considerable fame to causes from the American Civil Rights Movement to the global campaign against Apartheid. She stood with Dr. King and other leaders at the 1963 March on Washington, and later spoke at his funeral. She won extensive recognition for her achievements on stage, on the radio, in film, and on television. And she never slowed down or let up, delivering powerful performances and speaking out against injustice – often alongside her late husband, the great Ossie Davis – over the course of a career spanning more than six decades.
“I will always remember Ruby Dee was a wonderful entertainer, a truly great actress, a fierce activist, and an indispensable leader in the fight for civil rights. She left an indelible impression on me when, as a young man, I saw her unforgettable performance in A Raisin in the Sun. Today, I join millions of Americans in expressing my heartfelt condolences, and deepest sympathies, to her family and friends. Her work, her example, and her memory will endure. But she will be dearly missed.”
Southwest Virginia Coal Dealer Sentenced to Federal Prison for FraudRead the Press Release
GREENEVILLE, Tenn. – Dale Edward Stanley, 54, of Clintwood, Va., was sentenced on June 11, 2014, by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 12 months and one day in federal prison. A fine of $10,000 was also imposed. Following release from prison, Stanley will be subject to three years of supervised release under the supervision of a federal probation officer and must complete 200 hours of community service. Stanley will also be required to pay restitution in an amount to be determined by a later order of the Court.
Stanley was indicted in November 2012 for 22 counts of wire fraud involving a scheme to defraud Eastman Chemical Company (Eastman), Kingsport, Tenn., on spot market purchases of coal. He later pleaded guilty to one count of wire fraud. According to his plea agreement on file with the U.S. District Court, Stanley, the owner of Mountain Energy Resources, Inc., Norton, Va., contracted with Eastman to provide steam coal, which was to have a high BTU rate and low ash rate. In his plea agreement, Stanley admitted that he devised a scheme to defraud Eastman on the coal sales by circumventing the testing of the coal he sold to Eastman. His contract with Eastman stipulated that he would provide a certain quality of coal to Eastman and the coal would be tested to ensure it met the contract specifications. Stanley circumvented the testing process by bribing an employee of a coal testing service to submit unrepresentative samples of coal for analysis. As a result, Eastman believed they were receiving the quality of coal specified in the contract with Stanley, although he had actually directed his employees to load lower quality coal for the shipments to Eastman. Stanley caused to be sent via interstate wire communications false and fraudulent invoices for payment to Eastman and was paid for higher quality coal than he actually provided. Stanley engaged in this scheme to defraud Eastman from approximately February 2010 through February 2012.
This case is the result of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Neil Smith and Suzanne Kerney-Quillen represent the United States.
Southern Illinois Residents Charged with Heroin ConspiracyRead the Press Release
Follow @SDILNewsOn June 3, 2014, Frank R. Johnson, a/k/a “Mo,” 44, of Elkville, and George A. Mayo, 33, of West Frankfort, were charged by indictment with conspiracy to distribute heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and January 2014, in Jackson and Franklin Counties. Johnson and Mayo made their initial appearances in federal court on June 10, 2014, and June 12, 2014, respectively. They were both ordered held without bond pending an August 18, 2014, jury trial.
The heroin offense carries a penalty of up to 20 years in prison, to be followed by 3 years of supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and Drug Enforcement Administration. The Jackson County Sheriff’s Office, West Frankfort Police Department, and Jackson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Southern Illinois Residents Charged with Drug ConspiracyRead the Press Release
Follow @SDILNewsOn May 21, 2014, Ahamad R. Atkins, a/k/a “Omar,” and “O,” 33, of Colp, and Antuan D. Perkins, a/k/a “Little Man,” 22, of Carbondale, were charged by indictment with conspiracy to distribute crack cocaine and heroin, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and May 2014, in Williamson County. Atkins made his initial appearance in federal court in Chicago on June 10, 2014. At a June 12, 2014, hearing, he was ordered held without bond. Perkins is currently a fugitive.
The crack cocaine and heroin offense carries a penalty of up to 20 years in prison, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt.
The ongoing investigation is being conducted by the Southern Illinois Enforcement and the Drug Enforcement Administration. The Williamson County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Shreveport Men Sentenced for Robbing Businesses in Louisiana and Texas at GunpointRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Myles W. Robinson, 21, and Halston M. Smith, 22, both of Shreveport, were sentenced to 314 years in prison and 138 years in prison, respectively, by U.S. District Judge Elizabeth E. Foote for their participation in a string of armed robberies in Louisiana and Texas. The defendants were also ordered to pay $17,681.31 and $8,033.31 in restitution, respectively.
After a four-day trial that ended on January 16, 2014, Robinson was found guilty of all 27 counts of the indictment, and Smith was found guilty of 13 counts. According to testimony and evidence presented at the trial, the robberies took place between June 1, 2012, and November 14, 2012, at 15 businesses in Louisiana and Texas, with the men stealing in excess of $20,000. In some instances, money was taken from employees and patrons. In most of the robberies, a firearm or firearms were brandished. In at least one robbery, a firearm was discharged into the ceiling of a business in Caddo Parish. Businesses were robbed in Shreveport, Bossier City, Stonewall, Oil City, and Atlanta, Texas. In addition to Robinson and Smith, two other defendants, James D. Tyson, 22, and Tremario D. Washington, 24, took part in the robberies.
Washington pleaded guilty on June 6, 2013, and Tyson pleaded guilty on July 1, 2013, to one count of conspiracy and one count of using firearms during a crime of violence. On February 5, 2014, Tyson was sentenced to 111 months in prison and Washington was sentenced to 108 months in prison. They both received three years supervised release.
“Over many months, the men involved in these robberies terrorized employees and customers of the businesses targeted, and now they must face the consequences of their destructive and violent activity,” stated Finley. “This case demonstrates how effectively area law enforcement agencies can work together to bring criminals to justice. I want to thank all of the agents and prosecutors for their hard work on this case.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Shreveport Police Department, Caddo Parish Sheriff’s Office, DeSoto Parish Sheriff’s Office, Bossier City Police Department, and the Atlanta, Texas Police Department took part in the investigation. Assistant U.S. Attorneys James G. Cowles Jr., and Seth D. Reeg prosecuted the case.
Sex Offender Sentenced to 26 Years for Child Sexual ExploitationRead the Press Release
Anchorage, Alaska - U.S. Attorney Karen L. Loeffler announced today that a Connecticut man was sentenced in federal court in Anchorage for advertising and distributing child pornography in Alaska. Michael J. Carroll, 59, was sentenced to 26 years in prison, followed by lifetime supervised release. Carroll, using social networking tools and emails, advertised that he was seeking and offering to exchange, distribute and receive child pornography, and actually distributed child pornography to an email group of 48 users.
Carroll, from Milford, Connecticut, was sentenced today by Chief United States District Court Judge Ralph R. Beistline, to 312 months (26 years) in prison. Chief Judge Beistline also sentenced Carroll to serve a lifetime term of supervised release, with specific conditions to register as a sex offender, to have no unsupervised contact with any person under the age of 18, and to participate in sex offender assessment and treatment.
According to Assistant U.S. Attorney Kimberly Sayers-Fay, Carroll was convicted in Federal court in Anchorage on February 6, 2014, after a four-day jury trial, for one count of Advertising Child Pornography and two counts of Distributing Child Pornography. Trial evidence demonstrated that in late 2011, Carroll offered to trade sexually explicit images of children with other users involved in an international email group that an undercover agent in Alaska had infiltrated. Carroll also distributed close to 100 sexually explicit images on two occasions to the approximately fifty persons in this same email group, including the Alaskan undercover agent. The sexually explicit images of children that Carroll distributed involved victims ranging from elementary school-aged children to toddlers and infants. Other offenders in the same email group were previously prosecuted in Alaska.
At trial, Carroll argued that remote control of his computer via “hacking” explained both the presence of hundreds of images and videos of child pornography on his multiple computers, as well as the distribution of child pornography from his Yahoo! email address. Carroll testified that he was a highly skilled computer technician with a very sophisticated network, and that despite this, hackers were able to cause his email to send messages reflecting the Internet Protocol (IP) address assigned to his home, and were also able to populate his computer system with sexually explicit images of children organized in a plethora of conspicuously named folders. Carroll likened his experience to that of Target, the retailer whose data was harvested by hackers. In convicting the defendant, the jury rejected the assertion that someone else was responsible for these crimes.
In sentencing Carroll, Chief Judge Beistline noted that Carroll was a “sociopathic pedophile, a pathological liar and a narcissist” with a “lifelong history” of abusing vulnerable victims. The Court also remarked that the victims Carroll viewed are real children with hopes and dreams. They are innocents, susceptible to manipulation, whose lives are scarred forever by these crimes. As Chief Judge Beistline observed, “Children are messages we send to a world we will not see.”
In imposing his sentence, Chief Judge Beistline observed that Carroll lied to the jury during the trial, oblivious to the fact that his testimony was ludicrous. The judge noted that the trial and presentence investigation revealed Carroll’s true character and a string of past abuses. The court also considered that Carroll had no ability to admit his crimes and had no remorse for them, leading Chief Judge Beistline to conclude that rehabilitation for Carroll was unlikely. Finally, Chief Judge Beistline disabused Carroll of his notion that he had a First Amendment right to review child pornography to satiate his “curiosity.”
In addition to the 100 images he emailed to 48 people, Carroll’s multiple computers contained about 2000 images and 340 videos of child pornography. A dozen child victims were identified in those images, and eleven victims submitted letters describing the serious harms they had suffered as the result of being sexually exploited. Chief Judge Beistline acknowledged those harms and the seriousness of child pornography crimes when he sentenced Carroll to the 26 year prison sentence, followed by supervised release for the rest of Carroll’s life.
Commenting on the sentence, United States Attorney Karen L. Loeffler stated, “Protecting our children from predators such as Mr. Carroll is a priority mission. Every child depicted in these media had their childhood stolen and is victimized by every repeated viewing by those who would exploit children for personal benefit. Modern communications add much benefit to many facets of our daily personal and professional lives, but we will continue to work tirelessly with our law enforcement agencies as well as private and public partners in fighting against these pernicious crimes.
Ms. Loeffler commends Homeland Security Investigations in Alaska and Connecticut, the Alaska Bureau of Investigation and the Anchorage Police Department for their extensive investigation of this case, and acknowledges their persistent dedication to rescuing child victims from sexual exploitation, and pursuing the sexual predators who harm children.San Francisco Resident Indicted for Possession of an Improvised Explosive DeviceRead the Press Release
SAN FRANCISCO – A federal grand jury in San Francisco indicted Ryan Kelly Chamberlain II yesterday with possession of an unregistered destructive device, and possession of a firearm with the manufacturer’s serial number removed, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson, Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Joseph M. Riehl, and Tatum King, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in San Francisco.
The two-count Indictment alleges that Chamberlain, 42, of San Francisco, possessed a destructive device that was not registered to him in the National Firearms Registration and Transfer Record, and a handgun with an obliterated serial number that had been shipped and transported in interstate commerce. According to an affidavit filed by an agent of the FBI in connection with a criminal complaint filed previously in the same matter, the destructive device was an improvised explosive device complete with a power source, wire conductors, switching mechanism, shrapnel, and a remote controlled detonation system.
Chamberlain was the subject of a recent manhunt which resulted in his arrest near Crissy Field in San Francisco, Calif., on June 2, 2014. Chamberlain came to the attention of authorities during an investigation of his alleged activities on the “Deep Web.”
Chamberlain made his initial appearance in federal court in San Francisco on June 3, 2014, and is scheduled to appear for a detention hearing on Monday, June 16, 2014, at 9:30 a.m., before the Honorable Nathanael Cousins, United States Magistrate Court Judge.
An Indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 10 years in prison, followed by a 3-year period of supervised release, and $10,000 fine, for a violation of 26 U.S.C. § 5861(d), and a maximum sentence of 5 years in prison, followed by a 3-year period of supervised release, and $250,000 fine, for a violation of 18 U.S.C. § 922(k). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Philip J. Kearney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Patricia Mahoney. The prosecution is the result of an investigation by the FBI, ATF, and ICE HSI.
(Chamberlain II indictment )
Roscoe Man Sentenced to 295 Months in Federal Prison for Transporting Child Pornography via the InternetRead the Press Release
ROCKFORD — A Roscoe, Ill. man was sentenced today in federal court by U.S. District Judge Frederick J. Kapala to 295 months in federal prison, followed by 5 years of supervised release, for transporting child pornography via the internet. JASON NICOSON, 36, who pled guilty on May 20, 2013, admitted in his written plea agreement that in December 2011 and January 2012, he used the internet to transport images and videos that contained multiple visual depictions of minors engaging in sexually explicit conduct.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois State Police and the Illinois Internet Crimes Against Children Taskforce assisted in the investigation.
The government was represented by Assistant U.S. Attorney Michael D. Love.
Roommates Sentenced on Conspiracy Convictions Stemming from A Tax Refund Fraud SchemeRead the Press Release
DALLAS — A local man was sentenced yesterday afternoon, by U.S. District Judge Jane J. Boyle, to 45 months in federal prison and ordered to pay approximately $52,000 in restitution on a conspiracy conviction stemming from his role in a tax refund fraud scheme, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Elijah Meskano pleaded guilty in May 2013 to a superseding information charging one count of conspiracy to commit theft of public funds. Following the hearing yesterday, Judge Boyle remanded him into the custody of the U.S. Marshal.
According to a complaint filed in Meskano’s case, he and Cephas Msipa were roommates in Plano, Texas. Msipa, who has been in federal custody since his arrest on an indictment in November 2012, pleaded guilty to the same offense and was sentenced in February 2014 to 46 months in federal prison and ordered to pay more than $118,000 in restitution. The Court stated during his sentencing hearing that Msipa will be deported to Zimbabwe after he serves his prison sentence.
According to the factual resume filed in Msipa’s case, Msipa admitted that from January 5, 2012, until June 2012, he was involved in a conspiracy to obtain tax refunds generated through the submission of fraudulent tax returns. For his part in the conspiracy, Msipa used a false name to open bank accounts in order to receive the refunds from the fraudulently filed tax returns.
Msipa used a forged United Kingdom passport to establish a private mailbox at a postal store on Preston Road in Dallas. Thereafter, according to the factual resume, Msipa used this false name, and the address of the mailbox, to open three accounts at Bank of America and two accounts at Chase Bank.
Meskano, according to the factual resume filed in his case, from December 22, 2011 through November 29, 2012, also opened bank accounts using a false name to receive refunds from fraudulently filed tax returns.
According to the factual resume filed in Meskano’s case, from January through November 2012, the co-conspirators electronically filed 192 fraudulent tax returns using stolen identities and false income information that directed the IRS to deposit refunds into one of six bank accounts Meskano opened.
IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated. Assistant U.S. Attorney Christopher Stokes prosecuted.
Richmond Man Sentenced to 27 Months in Prison for Defrauding Relatives Out of $244,000Read the Press Release
SAN FRANCISCO – On June 11, 2014, Marvin Solis was sentenced to 27 months in prison and ordered to pay restitution for an investment fraud scheme he perpetrated against his relatives, announced U.S. Attorney Melinda Haag, Office of the Special Inspector General for the Troubled Asset Relief Program, Special Agent in Charge Scott O'Briant, and FBI Special Agent in Charge David J. Johnson.
Solis, 30, of Richmond, Calif., pleaded guilty on Jan. 29, 2014. According to the plea agreement, Solis admitted to defrauding his then-wife’s family members out of approximately $244,000. The fraud, which stretched from September 2008 through March 2009, involved three parts. First, Solis solicited approximately $207,000 from several relatives of his wife, telling them that he would invest the money in real estate. Contrary to his promises, Solis spent the money that he received from them, and lost it making risky commodities trades. He never invested their money in real estate. Second, he encouraged his victims to open credit card accounts to fund renovations of the properties he had promised to purchase for them. Instead, he ran up approximately $10,000 in charges on these credit cards. Third, he used the personal information of one of his victims, without the victim’s knowledge, to open a credit card account in the name of Solis’s company, and then charged approximately $26,600 on the card, again without authorization.
Solis, was indicted by a federal grand jury on Sept. 5, 2013, on two counts of wire fraud, in violation of 18 U.S.C. § 1343. He pleaded guilty to both of these counts.
The sentence was handed down by the Honorable Edward M. Chen, U.S. District Court Judge. Judge Chen also sentenced the defendant to a three year period of supervised release and restitution. The defendant will begin serving the sentence on Aug. 11, 2014.
Benjamin Kingsley is the Assistant U.S. Attorney who is prosecuting the case, with the assistance of Mary Mallory and Rawaty Yim. The prosecution is the result of an investigation by SIGTARP and the FBI.
(Solis indictment )
Reston Man Sentenced for Exporting Unlicensed High-Tech Goods to IranRead the Press Release
ALEXANDRIA, Va. – Vahid Hosseini, 62, of Reston, Virginia, was sentenced today to 30 months in prison, followed by 2 years of supervised release, for exporting various high-tech unlicensed goods to Iran, in violation of the International Emergency Economic Powers Act (IEEPA), and for laundering money wired to him from multiple overseas accounts. Hosseini agreed to forfeit $50,000 as part of his guilty plea in this case.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Liam O’Grady.
Hosseini pleaded guilty on March 6, 2014. According to court documents, from at least as early as January 2008 to July 2013, Hosseini operated a business known as Sabern Instruments from his residence in Reston. Through this business, Hosseini procured over $250,000 worth of goods from over 60 American manufacturers, which he then repackaged and shipped to entities in Iran. The list of high-tech goods included tachometers, power supply instruments, high-temperature probes, ammonia test tubes, valves and machinery parts, all of which are used in a variety of commercial applications, including power plants. Some of the items Hosseini sent to Iran were found to be capable of adding value to a nuclear weapons program and to other nuclear related applications and research areas.
Hosseini routed his shipments through the United Arab Emirates (UAE) in an attempt to disguise the fact that the items were destined for Iran. Such exports are prohibited without a license issued by the Treasury Department’s Office of Foreign Assets Control. In a related money laundering scheme, Hosseini had over $700,000 wired into his company business account from entities in Iran and the UAE, much of which was derived from his illegal export business.
This case was investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Neil Hammerstrom prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia 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.Registered Sex Offender Sentenced to 40 Mos. for Returning to the United States After Being DeportedRead the Press Release
ALEXANDRIA, Va. – A registered sex offender, who previously was convicted in North Carolina of taking indecent liberties with a minor child, was sentenced today in federal court to 40months in prison to be followed by 2 years of supervised release for returning to the United States after he was ordered removed in immigration proceedings.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and M. Yvonne Evans, Field Office Director of Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), Washington Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton.
Jose Santiago Hernandez-Lopez, 36, of Gainesville, Virginia, was found guilty after a federal bench trial on March 24, 2014 for illegally re-entering the United States after being convicted of an aggravated felony. According to court documents and evidence presented at trial, Hernandez-Lopez first entered the United States as an immigrant on Sept. 8, 1991. While in the United States, Hernandez-Lopez was convicted in 1998 by the Superior Court of Alamance County, North Carolina for taking indecent liberties with a minor child.
Hernandez-Lopez was registered as a convicted sex offender and was placed into immigration proceedings after he finished serving his North Carolina sentence. Hernandez-Lopez was removed from the United States on Nov. 23, 1999, but he later returned without the permission of the U.S. Attorney General or the Department of Homeland Security.
This case was investigated by ICE ERO. Assistant U.S. Attorney Gene Rossi and Special Assistant U.S. Attorneys Jason Jones and Catherine Ahn prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia 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.Proceeds of Forfeited Drug Property Go to Boundary County and IdahoRead the Press Release
COEUR D’ALENE – United States Attorney Wendy J. Olson announced today that the United States Marshals Service recently sold one of the real properties forfeited in the Robert Wayne Baucum criminal case. Baucum and four other defendants were charged and pled to conspiracy to manufacture, and possess with intent to distribute, marijuana, including at least 1,000 marijuana plants. The Raccoon Lane property in Boundary County sold for approximately $235,000.00. The proceeds from that property sale will now be shared with the Boundary County Prosecutor’s Office and the Idaho State Police, who will each receive approximately $80,000.
As part of their plea agreements, defendants agreed to forfeit properties involved in their violations and the proceeds they obtained. The properties included nine parcels of real property located in Idaho, Oregon and Alaska; currency; and personal properties including vehicles, gold and silver coins and motorcycles. Requests for equitable sharing and requests to place forfeited personal properties into official use may continue to be awarded to state and local law enforcement who assisted in the investigation.
The Department of Justice Asset Forfeiture Program is a nationwide law enforcement initiative that removes the tools of crime from criminal organizations, deprives wrongdoers of the proceeds of their crimes, recovers property that may be used to compensate victims, and deters crime. Asset forfeiture has become one of the most powerful tools for targeting criminals—including drug dealers and white collar criminals—who prey on the vulnerable for financial gain. One of the most important provisions of the asset forfeiture laws is the sharing back of federal forfeiture proceeds with state and local law enforcement agencies via the DOJ Equitable Sharing Program. This program enables state and local law enforcement agencies to offset some of their costs in working together with federal agencies to investigate and prosecute complex and large-scale crime. It serves not only to deter crime but also to provide valuable additional resources to state and local law enforcement agencies through their direct participation in an investigation or prosecution that results in a federal forfeiture. Since its inception more than 30 years ago, the program has resulted in millions of dollars being shared with the Idaho State Police, county sheriffs and city police departments throughout the state.
Pimp Sentenced to 46 Months for Sex TraffickingRead the Press Release
Baltimore, Maryland -U.S. District Judge J. Frederick Motz sentenced Michael Darnell Boswell, Jr., age 31, of Raleigh, North Carolina, today to 46 months in prison followed by three years of supervised release for interstate transportation of women for prostitution. Judge Motz ordered that upon his release from prison, Boswell must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Anne Arundel County Police Chief Kevin Davis.
According to his plea agreement, from January through June 2013, Boswell recruited at least two young women who were struggling financially and transported them to Maryland, Virginia and North Carolina for prostitution. Boswell promised to help them earn more money through his entertainment business. In one case, Boswell first told a woman that he would set up dances and private parties for her, and only later did Boswell begin to set up commercial sex acts for the women. Boswell set up so called “dates” using online ads that advertised sex. Boswell arranged multiple sex acts per day and provided the women with drugs.
On June 20, 2013, Anne Arundel County police arrested Boswell and the two women near the BWI airport, after detectives saw Boswell drive the women from a hotel to local businesses around the airport. The arrest came after Boswell had arranged for a woman to have sex with an undercover detective and was seen driving the woman to a hotel. According to evidence presented to the court, in the year prior to his arrest, Boswell had been arrested twice for trafficking prostitutes. In total, Boswell has been arrested for sex trafficking four times in three states.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and Anne Arundel County Police Department for their work in the investigation, and praised the Henrico County Police Department in Virginia and the Raleigh Police Department in North Carolina for their assistance in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Justin S. Herring and Ayn B. Ducao, who prosecuted the case.
Parmalee Man Sentenced for Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmalee, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on June 10, 2014, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Richard Wolf Guts, age 29, was sentenced to 21 months in custody, 6 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Wolf Guts pled guilty to the charge on January 30, 2014. The charge related to Wolf Guts absconding from a halfway house where he resided and failing to register as a convicted sex offender in South Dakota during May and June of 2013.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Wolf Guts was immediately turned over to the custody of the U.S. Marshals Service.
Palmetto Woman Arrested for Embezzlement of Funds from Local CompanyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the arrest of Beverly Sue Gingell (60, Palmetto) on a federal complaint charging her with committing wire fraud. She faces a maximum penalty of 20 years in federal prison, and a fine of $250,000, or twice the gross gain caused by the offense, or twice the gross loss caused by the offense. Gingell made her initial appearance before Magistrate Judge Elizabeth A. Jenkins yesterday and was released on a $50,000 personal surety bond.
According to the complaint, Gingell was formerly employed by a Bradenton company, Pro-Link, as the company’s finance manager. Beginning in the summer of 2010 through March 2011, Gingell allegedly embezzled nearly $700,000 from the company by sending money via wire transfer to her bank account, and by also obtaining money orders payable to herself and others. One of the wire transfers was used to pay off the remaining mortgage balance on Gingell’s residence. Also, while interfacing with Internal Revenue Service (IRS) agents on behalf of the company, Gingell misrepresented her authority. She also misrepresented the results of an IRS audit of Pro-Link business tax returns to Pro-Link owners.
The charges in the complaint are merely allegations and the defendant is presumed innocent unless and until proven guilty in a court of law.
This case was part of an ongoing joint investigative effort by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigations, and the Bradenton Police Department. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.
Pair Sentenced for "Felony Lane" ScamRead the Press Release
HARRISONBURG, VIRGINIA – A pair of individuals who have admitted to traveling up and down the East Coast, breaking into cars and stealing property were sentenced yesterday in the United States District Court for the Western District of Virginia in Harrisonburg.
Stephanie Jordan Kantz, 21, and Hataria Whitehead, 39, neither of whom have permanent addresses on file, previously pled guilty to one count of conspiracy to possess five or more identification documents that were not issued for the use by the defendant, one count of conspiracy to use access devices that the defendant was not authorized to use and one count of possessing without lawful authority, a means of identification of another person in relation to another crime.
Yesterday in District Court Kantz was sentenced to 24 months in federal prison for her role in the scheme. Whitehead was sentenced to 94 months in federal prison.
“These two defendants repeatedly stole checks, credit cards, and other items of value during their weeks-long crime spree,” United States Attorney Timothy J. Heaphy said today. “While we will continue to hold those who commit these crimes accountable, I want to remind everyone to take steps to secure valuables and protect themselves from this kind of rudimentary but damaging fraud.”
According to evidence presented at previous hearings by Special Assistant United States Attorney Drew Smith, Kantz and Whitehead were involved in a “Felony Lane” scam, a scheme in which individuals steal identification documents and checkbooks or credit cards and then use the IDs to cash checks while posing as the victim of the theft. The scheme was named for the “Felony Lane Gang” in South Florida, who are believed to have originated scheme.
Kantz and Whitehead have admitted that between October 2, 2014 and October 22, 2014, they traveled from Florida to Virginia, with stops in Georgia, South Carolina and North Carolina. Along the way, the defendants made a variety of stops, each time they stopped they made, or attempted to make, purchases using credit cards and identification documents that had been stolen. To further the scheme, Kantz would wear wigs and make-up to alter her appearance to look more like the victims in the stolen photo IDs.
The defendants had obtained the stolen credit cards and identification documents by breaking into dozens of vehicles in multiple states. Typically, the defendants would target vehicles parked in places where people were more likely to leave their purses and other belongings in their vehicles, such as funeral homes, churches, day care centers, gyms and parks. Upon finding a target vehicle, Whitehead would break into the vehicles, sometimes using a window punch to break a window. The two routinely broke into several vehicles in the same location. The defendants targeted purses and electronics but credit cards, checkbooks and ID documents were the most coveted items.
The two were ultimately arrested while attempting to break into vehicles inside Shenandoah National Park. In all, the defendants caused at least $104,371 in financial losses to their victims.
The investigation of the case was conducted by the United States Secret Service and the National Park Service. Special Assistant United States Attorney Drew Smith prosecuted the case for the United States.
Owner of Former Tax Service Sentenced to Prison for Aiding and Assisting in the Filing of False Federal Income Tax ReturnsRead the Press Release
United States Attorney James L. Santelle announced that Sunday Uwubiti (61 years old) of Milwaukee, Wisconsin was sentenced in federal court for aiding and assisting in the filing of false federal income tax returns. United States District Judge Rudolph T. Randa sentenced Uwubiti to twenty-four months in prison and ordered him to cooperate with the IRS. Judge Randa also placed Uwubiti on one year of supervised release.
In January 2014, Uwubiti was charged in a criminal information with two counts of aiding and assisting in the filing of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(2). According to records filed in court, Uwubiti operated a tax return preparation business using the name Trustee Tax Service. During the period from approximately January 2010 through April 2011, Uwubiti, and others employed and supervised by Uwubiti at Trustee Tax Service, prepared and filed false and fraudulent federal income tax returns for third parties. These returns, the majority of which were electronically filed with the Internal Revenue Service, sought income tax refunds to which the taxpayers were not entitled. At least 99 false and fraudulent income tax returns were filed seeking more than $448,000 in federal income tax refunds.
This case was investigated by the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant United States Attorney Matthew Jacobs.
Nursing Home Chain to Pay $750,000 to Resolve False Claims Act AllegationsRead the Press Release
Settles Claims that Care at Skilled Nursing Facilities in Baltimore and Elsewhere
Was Substandard or WorthlessBaltimore, Maryland - Foundation Health Services, Inc. (FHS), its affiliated nursing facilities, and its president and chief executive officer Richard Daspit, Sr., have agreed to pay $750,000 to the United States and the State of Maryland to resolve allegations that they submitted false claims for payment to Medicaid and Medicare for materially substandard and/or worthless skilled nursing facility services. FHS is a Louisiana not-for-profit company that owns and manages nine nursing facilities in Pennsylvania, Mississippi, Virginia and Maryland, including Rock Glen Nursing and Rehabilitation Center, and Harborside (formerly Ravenwood) Nursing Center, both located in Baltimore City.
The settlement agreement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services (HHS OIG); and Maryland Attorney General Douglas F. Gansler.
The settlement resolves allegations that between 2006 and 2010, some of the skilled nursing services provided at several nursing facilities managed by FHS were materially substandard and/or worthless because FHS failed to (a) follow appropriate fall protocols; (b) follow appropriate pressure ulcer and infection control protocols; (c) properly administer medications to avoid medication errors; (d) appropriately provide for activities of daily living including bathing, monitoring, feeding and supervising for some residents; (e) provide appropriate mental health treatment; (f) answer call lights promptly; (g) employ a sufficient number and skill-level of nursing staff to adequately care for the residents; and (h) provide a habitable living environment, adequate equipment and needed capital expenditures. The United States and the State of Maryland further claimed that as a result of these failures of care, some residents allegedly suffered from falls, fractures, head injuries; malnutrition; dehydration; pressure sores and infections. FHS and the other released parties deny the allegations.
The government opened its False Claims Act investigation in the summer of 2010 when all of the residents of Ravenwood Healthcare, Inc., a Baltimore nursing facility operated by FHS, needed to be evacuated due to a breakdown of its air conditioning system. The temperatures during that July holiday weekend reached over 100 degrees. The government’s investigation uncovered other quality of care concerns at Ravenwood, the Rock Glen Nursing and Rehabilitation Center, also located in Baltimore, and at a Pennsylvania facility owned by FHS. FHS subsequently closed Ravenwood.
As part of the settlement, FHS and its related facilities have agreed to enter into a Corporate Integrity Agreement with HHS OIG. The agreement requires an independent monitor and allows HHS OIG to oversee the quality of care provided at all of the skilled nursing facilities associated with FHS over the next five years.
“Ensuring quality nursing home care is a top priority for the Office of Inspector General,” said Special Agent in Charge Nick DiGiulio, HHS Office of Inspector General, Philadelphia Regional Office. “It is unthinkable that nursing home owners would profit by skimping on needed health services, and basic facility maintenance, then sit back while vulnerable residents suffer. We will continue to hold nursing homes accountable to give residents the quality health services, and living conditions, we pay them to provide.”
U.S. Attorney Rod J. Rosenstein commended the HHS-OIG, the Maryland Attorney General’s Medicaid Fraud Control Unit and Civil Division of the Department of Justice for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Thomas F. Corcoran, who handled the caseNorth Dakota Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Brendan V. Johnson announced that a Bismarck, North Dakota, man convicted of Abusive Sexual Contact was sentenced on June 9, 2014, by U.S. District Judge Charles B. Kornmann.
Brandon David Wutzke, age 29, was sentenced to 3 months of custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Wutzke was indicted by a federal grand jury on December 10, 2013. He pled guilty on February 18, 2014.
The conviction stems from an incident on December 25, 2012, when Wutzke was at his parents’ home in McLaughlin, South Dakota, to celebrate the holidays. Also present in the home was the minor female victim. That evening, Wutzke fell asleep in the living room along with the victim and two other children.
At some point during the evening, the victim awoke to find Wutzke lying beside her, reaching under the victim’s shirt and bra, and touching her inappropriately. Another child in the room began to move around, causing Wutzke to return to his side of the couch. At the time of this abusive sexual contact Wutzke was 28 years old and the victim was 12 years old.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Wutzke is to self-report to the U.S. Marshals Service by June 24, 2014.
Napa Doctor Sentenced to Federal Prison for Tax FraudRead the Press Release
SAN FRANCISCO – Ali Vaziri was sentenced yesterday to one year and one day in prison and ordered to pay a $10,000 fine and $116,703 in restitution for tax fraud, announced U.S. Attorney Melinda Haag, Federal Bureau of Investigation Special Agent in Charge David J. Johnson, IRS Criminal Investigation Special Agent in Charge José M. Martinez, and Department of Health and Human Services Office of Inspector General Special Agent in Charge Ivan Negroni.
Vaziri pleaded guilty on Feb. 3, 2014, to four felony counts of willfully subscribing a false income tax return, in violation of 26 U.S.C. § 7206(1). According to the Plea Agreement, Vaziri admitted to knowingly submitting false tax returns from 2005 through 2008, causing losses to the IRS and proportionate gains to him in excess of $100,000. Specifically, in his 2005 tax return, the defendant significantly and falsely inflated his business expenses, causing a tax loss of $14,535. In his 2006 return, the defendant again substantially and falsely inflated his business expenses, causing a tax loss of $60,620. In his 2007 tax return, Vaziri once again substantially and falsely inflated his business expenses, causing a tax loss of $27,476. Finally, in his 2008 tax return, the defendant again substantially and falsely inflated his business expenses, causing a tax loss of $14,072. Vaziri further admitted that he was responsible for additional interest and penalties related to those tax losses and had a total due to the IRS of at least $268,568.91.
Vaziri, 49, of Napa, Calif., was charged in a superseding Indictment by a federal grand jury on June 28, 2012.
The sentence was handed down by the Honorable Charles R. Breyer, United States District Court Judge, following a guilty plea to four counts in violation of 26 U.S.C. § 7206(1). Judge Breyer also sentenced the defendant to a one year period of supervised release, which included six months of time in a Residential Reentry Center. The defendant will begin serving his sentence on or before Aug. 15, 2014.
Robert David Rees is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rawaty Yim. The prosecution is the result of an investigation by the FBI, IRS-CI, and HHS-OIG.
(Vaziri superseding indictment )
Miami Beach Physician Sentenced in Medicare Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ryan P. Lynch, Acting Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division, announce that Christopher Gregory Wayne, 54, an osteopathic physician residing in Miami Beach, was sentenced today by U.S. District Judge Robert N. Scola, Jr. to 70 months in prison, followed by three years of supervised release. In addition, Judge Scola entered a $1.6 million forfeiture money judgment against Wayne and ordered the forfeiture of his Miami Beach residence and a 2002 Mercedes Benz. Christopher Gregory Wayne was also ordered to pay restitution to the Centers for Medicare and Medicaid Services in the amount of $1,649,042, the amount of loss suffered by the Medicare program.
Wayne previously pled guilty to a criminal information that charges him with health care fraud and conspiracy to violate the narcotics laws of the United States. In his plea, Wayne admitted to executing a scheme to defraud the Medicare program and attempting to cause a loss in excess of $2,500,000 to Medicare. Wayne also admitted that he conspired with others to knowingly and intentionally prescribe Schedule II controlled substances, such as oxycodone, outside the scope of professional medical practice and not for a legitimate medical purpose, knowing that controlled substances would be distributed illegally.
Mr. Ferrer commended the investigative efforts of HHS-OIG, FBI and DEA. The case was prosecuted by Assistant United States Attorneys Eric Morales, Brent Tantillo 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.
McLaughlin Man Sentenced for Sexual Abuse of A Personal Incapable of ConsentRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Sexual Abuse of a Person Incapable of Consent was sentenced on June 9, 2014, by U.S. District Court Charles B. Kornmann.
Robert Arnold Stand, 25, was sentenced to 108 months in custody, 5 years of supervised release, $100 restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Stand was indicted by a federal grand jury on November 14, 2013. He pled guilty on January 28, 2014.
The conviction stems from an incident on October 5, 2013, when Stand was at his residence drinking alcohol with a group of friends. Also present was the minor female victim. At some point in the day, the victim began to drift in and out of consciousness due to the amount of alcohol she had consumed.
During a state of unconsciousness, the victim was brought into the bathroom by Stand, who proceeded to remove her pants. Stand then sexually abused the victim while she was incapable of consenting or declining participation in the sexual act. At the time the sexual act commenced, Stand knew the victim was intoxicated to the point of being unable to consent to the sexual act. Stand was 10 years older than his minor victim, who was 14 years old at the time of the sexual assault.
This case was investigated by the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Stand was immediately turned over to the custody of the U.S. Marshals Service.
McLaughlin Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a McLaughlin, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on June 9, 2014, by U.S. District Judge Charles B. Kornmann.
Lawrence Village Center, a/k/a Larry Village Center, age 46, was sentenced to 57 months of custody, 3 years of supervised release, $286 in restitution, and a $100 special assessment to the Federal Crime Victims Fund.
Village Center was indicted by a federal grand jury on November 14, 2013. He pled guilty on January 17, 2014.
The conviction stems from an incident on August 31, 2013, in McLaughlin, when the Fort Yates Police Department received a 911 call reporting that Village Center was assaulting an adult female with a hammer.
A Bureau of Indian Affairs (BIA) officer made contact with the victim in the kitchen of her home. The officer was informed by the victim that she was walking towards the family home when she was shoved to the ground from behind by Village Center, who then struck her several times about the head and body with a hammer. After assaulting the victim, Village Center approached the family van and broke out the windshield with the hammer.
Village Center has two prior judgments of conviction for Domestic Abuse in Standing Rock Tribal Court for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
This case was investigated by the BIA, Standing Rock Law Enforcement Agency and the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Village Center was immediately turned over to the custody of the U.S. Marshals Service.
Manatee County Doctor Pleads Guilty in Oxycodone CaseRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces that Dr. John Lanning (79, Anna Maria, Florida) yesterday pleaded guilty to causing Oxycodone to be dispensed and distributed not for a legitimate medical purpose and not in the usual course of professional practice. Lanning faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, in March 2010, Lanning started working as a physician at the 1910 Medical Clinic (the “Clinic”), which was located at 1910 Manatee Avenue West in Bradenton. Lanning worked there until May 2010. During that time period, Lanning quickly learned that the Clinic was designed by its owner-operators to function as, and did operate as, a “pill mill.” While at the Clinic, Lanning would regularly see between 20 and 30 patients a day.
On April 26, 2010, an undercover detective (UC) visited the Bradenton Clinic posing as a pain management patient. After receiving an MRI examination, the UC was ultimately seen by Dr. Lanning, who reviewed the MRI and advised the UC that he had a protruding disk that was almost herniated. The UC never had a history of back pain, injury, or any other back problems. After a cursory examination, Lanning then provided the UC with a prescription for 90 dosage units of 15 mg Oxycodone. Dr. Lanning admitted that this Oxycodone was not prescribed for a legitimate medical purpose and not in the usual course of proper and professional practice.
This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Matthew Jackson.
Lon O. Hocker AwardRead the Press Release
KANSAS CITY, Mo. – Daniel M. Nelson, Assistant U.S. Attorney for the Western District of Missouri, has been named a recipient of the prestigious Lon O. Hocker Award in recognition of his outstanding trial work in federal court.
“Dan Nelson earned this award in the trenches,” said Tammy Dickinson, United States Attorney for the Western District of Missouri. “Dan successfully prosecuted the criminals who stole millions of dollars from the public in the largest tax case ever prosecuted in Missouri. He successfully prosecuted the criminals who stole from more than 12,000 investors across the country. And he diligently serves the United States by upholding the cause of justice at the federal courthouse every day.
“I’m pleased that Dan is receiving the public recognition that he deserves,” Dickinson added. “He is respected in the legal community as a tough, energetic litigator who comes to the courtroom armed with meticulous research and a keen intellect.”
The Missouri Bar Foundation describes the Lon O. Hocker Award: “This award is given to three trial lawyers who are under the age of 40 selected from different regions of the state: St. Louis, Kansas City and all other counties. The recipients are chosen based on their demonstrated balance between zealousness and honor, strength and courtesy, confidence and respect, as well as other professional qualities. Recipients must possess a quick wit in the courtroom that is supported by meticulous preparation in the pursuit of truth.”
Nelson, who currently works in the Fraud and Public Corruption Unit, prosecutes complex white collar criminal cases, such as securities fraud and other financial crimes. Nelson has also worked in the Computer Crimes and Child Exploitation Unit and served two years in management leadership as Executive Assistant U.S. Attorney.
The award, announced this week, will be presented at The Missouri Bar’s annual meeting on Sept. 10, 2014, in Kansas City. Nominations were taken from throughout the state by previous Lon O. Hocker Award winners, the Missouri Bar president, leaders, or members-at-large. The review committee was comprised of three or more federal or state judges.
Over the past five years, Nelson has prosecuted eight jury trials against 15 defendants. Those cases include:
- A $96 million nationwide false tax refund conspiracy that was the largest tax case ever prosecuted in Missouri. The 16 conspirators recruited 127 clients and filed 237 false tax returns, claiming $96 million in refunds. They actually received and split over $3.5 million. Thirteen defendants pleaded guilty, two were convicted after a 6-day jury trial and one remains a fugitive.
- The $10.2 million Petro America investment scam had more victims than any case previously prosecuted in the Western District of Missouri, with over 12,000 investors across the United States, Canada and overseas. The charges included conspiracy, wire fraud, securities fraud, money laundering and mail fraud. The five defendants who went to trial were convicted on all counts after a five-week-long jury trial. The remaining nine defendants all pleaded guilty.
- The mayor of Stover, Mo., was convicted of misprision of a felony and lying to agents from the Missouri Department of Natural Resources and the Environmental Protection Agency about coliform bacteria contamination in the city’s public water supply. The mayor and city manager manually added chlorine to city water samples they sent in for mandatory safety testing in an attempt to avoid being ordered to chlorinate the system. The mayor was convicted on all counts after a three-day jury trial and the city manager pleaded guilty prior to trial.
- Four sophisticated armed bank robberies utilized diversions and switch cars in Kansas City, Gladstone, and Independence. Two co-defendants pleaded guilty before trial. The remaining defendant was convicted after a week-long jury trial.
- A 15-year-long Social Security fraud scam by a mortgage company president who received disability benefits for 15 years despite starting and running his own company. A “sovereign citizen” who represented himself at trial, he was found guilty at the conclusion of a four-day jury trial.
- A Grain Valley couple obtained and spent nearly $900,000 in fraudulent federal tax refunds. Defendants identified themselves as “sovereign citizens,” and they represented themselves at trial. Charges included conspiracy, false claims, money laundering, wire fraud, and presenting fictitious obligations. Both defendants were convicted on all counts.
- Bank robbery of the Bank of Kansas City on Independence Avenue. Along with his hat and coat, this pro se defendant accidentally threw away the stolen money after fleeing the bank. Because the defendant was in shackles, all counsel were required to remain seated at their counsel tables for the entire jury trial. He was convicted on all counts.
Nelson grew up in St. Joseph, Mo., where he graduated from Central High School in 1994. He is a 1999 graduate of the University of Missouri School of Journalism and a 2002 graduate of the University of Virginia School of Law. Prior to joining the U.S. Attorney’s Office in 2004, he was an attorney at a top national law firm.
Nelson is also a member of the Kansas City Metropolitan Bar Association (Federal Court Advocates Section) and the Western District of Missouri Historical Society. He serves on the boards of Impact KC and the Child Protection Center. He has lectured on trial advocacy, cyber law, ethics and securities law at the University of Missouri School of Journalism, the University of Kansas School of Law and the University of Missouri-Kansas City School of Law.
Mary B. Hocker established the Lon O. Hocker Awards in 1954 in memory of her late husband, an outstanding trial lawyer who practiced in St. Louis for more than 50 years. The Missouri Bar Foundation makes the awards annually to young lawyers who have demonstrated unusual proficiency in the art of trial advocacy. The award is presented to three lawyers 40 years of age or younger – one each from the St. Louis, Kansas City and outstate Missouri areas – in recognition of outstanding trial work.Local Man Pleads Guilty to Identity Theft ChargesRead the Press Release
St. Louis, MO – DEANDREA ROBINSON, St. Peters, MO, pled guilty to one count of aggravated identity theft for an equity stripping real estate fraud scheme that victimized a homeowner in north St. Louis County.
According to the plea agreement, Robinson stole the identity of an individual homeowner to take control of the business entity that owned her home. Then, Robinson borrowed against the homeowner’s equity in the home. When Robinson failed to repay the loan, the lender initiated foreclosure on the homeowner, who was not even aware of the loan. After the criminal investigation of the matter began, the lender agreed to halt the foreclosure and the homeowner remains in her home.
Robinson, who has previously been prosecuted in the Eastern District of Missouri for real estate fraud, went into custody after U.S. District Judge John Ross accepted his plea. Robinson will serve 2 years in prison for aggravated identity theft and will be ordered to pay restitution to the lender he defrauded. Sentencing has been set for September 11, 2014.
The U.S. Postal Inspection Service investigated the case. Tom Albus is handling the case for the U.S. Attorney’s Office.
Little Eagle Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on June 9, 2014, by U.S. District Judge Charles B. Kornmann.
Theron Wade Makes Him First, age 26, was sentenced to 30 months of custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Makes Him First was indicted by a federal grand jury on December 10, 2013. He pled guilty on February 20, 2014.
The conviction stems from an incident on April 1, 2013, when a Bureau of Indian Affairs (BIA) officer was dispatched to a house in McLaughlin. As the officer arrived at the residence, Makes Him First was grabbing an adult female victim by the throat and shoving her up against the front door, holding her there, and telling her not to let the officer in. Makes Him First then dragged the victim into a bathroom and refused to let her go. At this point, another person in the house let the officer into the house and Makes Him First fled the bathroom to the basement. At the time of the assault, Makes Him First was on conditions with the Standing Rock Tribal Court and was not to be in contact with the victim.
Makes Him First has two prior judgments of conviction, in Standing Rock Tribal Court, for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
This case was investigated by the BIA, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Makes Him First was immediately turned over to the custody of the U.S. Marshals Service.
Little Eagle Man Sentenced for Domestic Assault by A Habitual OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Little Eagle, South Dakota, man convicted of Domestic Assault by a Habitual Offender was sentenced on June 9, 2014, by U.S. District Judge Charles B. Kornmann.
Robert Steele, age 53, was sentenced to 18 months of custody, 2 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Steele was indicted by a federal grand jury on April 12, 2013. He pled guilty on January 23, 2014.
The conviction stems from an incident on February 19, 2013, when a Bureau of Indian Affairs (BIA) officer responded to a call that Steele was assaulting an adult female victim. Upon arrival, the victim informed the officer that Steele had assaulted her in the family home. The victim estimated that during the assault she was kicked approximately 5-7 times. The victim had visible injuries to her upper and lower lips, informing the officer that Steele also hit her, but that she had managed to block some of the strikes.
Steele has two prior judgments for conviction for Domestic Assault in Standing Rock Sioux Tribal Court for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse or intimate partner.
This case was investigated by the BIA, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Steele was immediately turned over to the custody of the U.S. Marshals Service.
Leesburg Resident Sentenced for Distribution of Child PornographyRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Robert B. Pressley, aged 35, of Leesburg, Georgia, was sentenced by United States District Court Judge Louis Sands to serve 12 years (151 months) in federal prison for distribution of child pornography. The sentence was pronounced on June 12, 2014, in Albany, Georgia.Mr. Pressley entered a guilty plea on March 31, 2014. As a part of his plea agreement, Mr. Pressley admitted that he had been downloading child pornography for many years and used a variety of peer-to-peer file sharing software programs to obtain and share child pornography. In total, Mr. Pressley possessed 53 video files and 39 still image files depicting child pornography.
“Mr. Pressley’s case reminds us of the need to remain vigilant in these investigations as we try to protect our children. Every time he viewed an image or shared a file depicting child pornography, those kids were again victimized. Mr. Pressley used the internet as a way to violate the innocence of the child victims,” said U.S. Attorney Michael Moore.The case was investigated by the U.S. Department of Homeland Security – Immigration and Customs Enforcement . Assistant United States Attorney Jim Crane is representing the Government in the prosecution of the case.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Leader of Fraudulent UniRush Double Loading Scheme SentencedRead the Press Release
NEWPORT NEWS, Va. – Jamal Greene, 27, of Newport News, Va. was sentenced on June 11, 2014, to forty eight months in prison, following his guilty plea for his participation, with others, in a scheme to defraud Unirush, LLC, a provider of prepaid stored value cards. Greene was ordered to pay restitution in excess of $817,000.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, William G. Frantzen, Special Agent in Charge of the United States Secret Service’s Richmond Field Office, Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, and, Richard W. Myers, Chief of Newport News Police, made the announcement after sentencing by United States District Judge Raymond A. Jackson.
Greene, along with three others, Almira Dobson, Sam McGill, and Knhesha Strickland, pled guilty to their participation in the scheme to defraud. According to the statements of facts entered in support of the guilty pleas and other publicly filed documents, from in or about at least October 2010, and continuing until in or about at least March 2012, the defendants and others engaged in a fraudulent scheme to obtain funds from UniRush, LLC, doing business as UniRush Financial Services (“UniRush”). Unirush provided prepaid Visa debit cards in the United States (referred to as Visa “RushCards”). Its prepaid debit cards were used to deposit money, withdraw cash, make purchases, shop online, and pay bills. Through its RushCard program, UniRush allowed customers to “reload” the RushCards in a number of ways, including direct deposit, through MoneyGram locations and through various online means. Individuals could obtain a maximum of four RushCard accounts. These accounts were tracked according to individuals’ Social Security Numbers.
Green Dot Corporation (“Green Dot”) was a business that offered prepaid debit or credit cards that worked similarly to a RushCard. Green Dot also offered a product called a “MoneyPak” that could be purchased for a set amount (ranging from $20 to $500 at most retailers and up to $1,000 at Walmart stores). Individuals who purchased RushCards could use Green Dot MoneyPaks to “reload” Money onto their RushCard. In or about March 2012, the Peninsula area of the Eastern District of Virginia experienced a surge in the purchase of Green Dot MoneyPaks from local retailers, including Walgreen’s, Rite Aids and 7-Eleven stores.
In or about April 2012, UniRush detected an error in its computer accounting system that allowed customers to make multiple fraudulent loads to their RushCard using the same MoneyPak. In this way, certain customers obtained double the value of their MoneyPak. The total loss to UniRush resulting from the fraudulent conduct was approximately $5.5 million from 2010 through March 2012, with the majority of the losses occurring from December 2011 through March 2012. In this time period, approximately $4.5 million in losses resulted from fraudulent uploading associated with account holders residing in the Peninsula area of the Eastern District of Virginia.
In or about October 2010, defendant Greene learned of the aforementioned fraudulent uploading scheme through an internet website. Greene began to engage the fraudulent uploading activity and demonstrated such activity to other conspirators. Greene recruited and instructed others how to execute the Unirush scheme, provided startup money for their participation, obtained identities (including that of his mentally disabled sister) to use in opening additional accounts and transferred funds between various accounts to further and conceal the scheme.
The four individuals named here, join four others who were all previously convicted in connection with the Unirush scheme (Andre Banks, Steven Banks, Erika Greene, Javon Whitaker).
This case is being investigated by special agents and officers of the United States Secret Service, the United States Postal Inspection Service and the Newport News Police Department. Assistant U.S Attorney Brian Samuels is prosecuting the case.
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.Inmates Sentenced for Rioting in A Federal Prison FacilityRead the Press Release
Natchez, Miss – Two inmates were sentenced by Senior U.S. District Judge David Bramlette on June 12, 2014 for rioting at the Adams County Correctional facility on May 20, 2012, announced U.S. Attorney Gregory K. Davis.
Margarito Munoz-Astello, 37, originally of Tamaulipas, Mexico, was sentenced to 84 months in federal prison, and Raybel Granillo, 29, originally of Juarez, Mexico, was sentenced to 57 months in federal prison. Both inmates were also ordered to pay restitution in the amount of $1,382,313.00.
Another inmate, Ian Reid, 37, of Jamaica, also appeared in federal court on June 12th to enter a guilty plea to rioting in a federal prison facility. He will be sentenced on September 11, 2014, and faces a maximum penalty of ten years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Patrick Lemon.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:
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Huntsville Tax Return Preparer Sentenced for Fraudulent Refund SchemeRead the Press Release
HOUSTON – Cedric Keith Oliphant has been ordered to prison following his conviction related to the preparation of false client tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Oliphant pleaded guilty in August 2013.
Today, U.S. District Judge Melinda Harmon, who accepted the guilty plea, handed Oliphant a 33-month sentence. He was further ordered to pay a restitution of $325,852 and will also be required to serve one year of supervised release following completion of the prison term.
Oliphant owned and operated Oliphant Tax Service on Sam Houston Avenue in Huntsville until 2009. Court documents show that Oliphant had included false deductions in at least 69 tax returns without his clients’ knowledge or consent, which fraudulently increased their refunds by approximately $325,000 for tax years 2006 through 2008. The most egregious fraudulent refund was obtained in a 2007 tax return that claimed false deductions for medical, charitable and unreimbursed business expenses totaling almost $65,000. This tax return alone caused an estimated loss to the U.S. Treasury of $11,261.In handing down the sentence today, Judge Harmon noted that Oliphant had prepared hundreds more tax returns with deductions similar to those described in the plea agreement indicating that actual losses to the National Treasury could be as much as $1 million.
Oliphant had been previously released on bond. However, that bond was revoked when it was determined he violated the conditions of his release by continuing to prepare tax returns after conviction. At that bond hearing on April 10, 2014, evidence demonstrated Oliphant had prepared and electronically filed at least 463 client tax returns during the 2014 filing season.He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to these charges was conducted by IRS-CI. Assistant U.S. Attorney Jimmy Sledge Jr. is prosecuting the case.Houston Ambulance Operator Sentenced for Her Role in $2.4 Million Health Care Fraud SchemeRead the Press Release
The owner and operator of a Houston area ambulance company was sentenced today to serve 97 months in prison for her role in a $2.4 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Carlos J. Barron of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Gwendolyn Climmons-Johnson, 54, was convicted by a federal jury in Houston, Texas, on Oct. 30, 2013, of one count of conspiracy to commit health care fraud and four counts of health care fraud. In addition to the prison sentence, Climmons-Johnson was also sentenced to serve three years of supervised release and ordered to pay $972,132 in restitution.
According to evidence presented at trial, Climmons-Johnson was the owner and operator of Urgent Response EMS, a Texas-based entity that purportedly provided non-emergency ambulance services to Medicare beneficiaries in the Houston area. The evidence showed that from January 2010 through December 2011, Climmons-Johnson and others conspired to enrich themselves by submitting false and fraudulent claims to Medicare for ambulance services that were medically unnecessary and/or not provided. Climmons-Johnson, who controlled the day-to-day operations of Urgent Response, submitted, and caused to be submitted, approximately $2.4 million in fraudulent ambulance service claims to Medicare.
At trial, the evidence showed that patient records had been falsified and the Medicare beneficiaries for whom Climmons-Johnson had billed ambulance services did not need ambulance services and were not in the condition stated in the records.
The case was investigated by the FBI, HHS-OIG and Texas MFCU and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case was prosecuted by Trial Attorney Christopher Cestaro and Assistant Chief Laura M.K. Cordova of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .