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11 June 2014
Newcastle WA Man Sentenced to 63 Months, $146,000 Restitution for Card Skimming and Wire FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that ELVIN ALISURETOVE, age 36, of Newcastle, Washington, was sentenced to 63 months imprisonment, followed by 3 years of supervised release for Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 1349. The defendant was also ordered to pay $146,014.38 in restitution.
The Indictment alleged that beginning in or about April 2012 and continuing until in or about January 2013, within the Eastern District of Oklahoma and elsewhere, the defendant and others known and unknown to the Grand Jury would obtain account information and personal identification numbers (“PIN’s”) by using a skimming device.
The charges further allege that on or about the period of December 3, 2012 to December 4, 2012, in the Eastern District of Oklahoma, the defendant did knowingly possess, and use, without lawful authority, a means of identification of another person during and in relation to Conspiracy to Commit Wire Fraud.
The charges are a result from an investigation by the Durant Police Department, the Muskogee Police Department and the United States Secret Service.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
First Assistant United States Attorney Doug Horn represented the United States.
New Jersey Chiropractor Admits Obstructing Health Care Fraud InvestigationRead the Press Release
NEWARK, N.J. - A Sussex County, N.J., chiropractor today admitted destroying patient appointment records sought by federal agents investigating potential billing fraud at her medical office, U.S. Attorney Paul J. Fishman announced.
Mary Jean Negri, 57, of Lafayette, N.J., pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging her with one count of obstructing an investigation of a health care offense.
According to documents filed in this case and statements made in court:
For the past 24 years, Negri, a licensed chiropractor and registered nurse in New Jersey, has owned Lafayette Hilltop Chiropractic Center (Lafayette Hilltop). In May 2012 she discovered the FBI and the U.S. Attorney’s Office were investigating Lafayette Hilltop for potentially fraudulent billing practices. Negri suspected that investigators were interested in obtaining Lafayette Hilltop’s patient appointment books as evidence of potential fraud. In an effort to obstruct the government’s investigation, she discarded those patient appointment books.
The obstruction charge carries a maximum potential penalty of five years in prison and a maximum $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Sept. 29, 2014.U.S Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, as well as criminal investigators with the U.S. Attorney’s Office, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Scott B. McBride, Deputy Chief of the U.S. Attorney’s Office’s Economic Crimes Unit.
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Defense counsel: John M. Vazquez Esq., Roseland, N.J.
Negri, Mary Jean Information
Nevada Man Sentenced to 9 Years in Prison in Synthetic Drug CaseRead the Press Release
RENO, Nev. – A northern Nevada man was sentenced this week to nine years in prison for distributing synthetic cannabinoids out of his convenience store business in Reno, and for storing large quantities of the substance for distribution in his home in Reno, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Iqbal Singh-Sidhu, 34, was sentenced on Monday, June 9, 2014, by U.S. District Judge Robert C. Jones. Singh-Sidhu was convicted by a federal jury in February 2014 of 16 counts of possession with the intent to distribute and distribution of controlled substances and controlled substance analogues intended for human consumption, and one count of maintaining a drug-involved premise. It was the first federal jury trial of its kind in Nevada involving synthetic cannabinoids, commonly referred to as “spice.”
“Synthetic drugs such as “spice” and “fake weed” are oftentimes more potent and dangerous than real marijuana and are being sold to an unwary public in convenience stores, head shops, gas stations and online,” said U.S. Attorney Bogden. “These synthetics are powerful substances that are typically sprayed indiscriminately on a base product to create ‘spice,’ and when consumed have caused hallucinations and dangerous levels of overdose. We are working diligently with our local, state and federal law enforcement partners to prosecute persons who callously and recklessly distribute them.”
According to the court records and evidence introduced at trial, on four separate occasions in September 2012, Singh-Sidhu knowingly and unlawfully distributed controlled substances, and analogues intended for human consumption, in violation of the Controlled Substances Act and the Controlled Substance Analogue Enforcement Act. The synthetic substances that he distributed over the course of these four occasions were labeled “Diablo,” “Hayze,” “White Rhino,” and “Smokin Dragon.”
On Feb. 5, 2013, agents executed federal search warrants at 1801 West 4th Street, in Reno, and at Singh-Sidhu’s residence at 3101 Platte River Drive, in Reno, and recovered hundreds of packages of various types of “spice” in ready to distribute packaging. The overall street value of the “spice” found at his business and home was approximately $20,000.
The synthetic drugs Singh-Sidhu sold, and later possessed with intent to distribute at his business and his home in February 2013, contained one or more of the controlled substances, JWH-018, JWH-073, JWH-081, and AM2201, and/or one or more of the analogues intended for human consumption, UR-144, XLR11, and 5-MeO-DALT. Synthetic drugs containing these substances have hallucinogenic effects on the central nervous system. The physiological effects these substances cause are stronger and more potent than those caused by marijuana.
Singh-Sidhu also unlawfully maintained the business of Grab n Go Food n Liquors for the purpose of distributing “spice” containing these controlled substances, and analogues intended for human consumption.
According to the Office of National Drug Control Policy, synthetic drugs are a rapidly emerging threat and there is an increasingly expanding array of synthetic drugs available. Use of synthetic drugs is alarmingly high, especially among young people. The contents and effects of synthetic drugs are unpredictable due to a constantly changing variety of chemicals used in manufacturing processes devoid of quality controls and government regulatory oversight. Health warnings have been issued by numerous public health authorities and poison control centers describing the adverse health effects associated with the use of synthetic drugs. The Administration has been working with federal, congressional, state, local, and non-governmental partners to put policies and legislation in place to combat this threat, and to educate people about the tremendous health risk posed by these substances. For more information on the risks and dangers of synthetic drugs, go to http://www.whitehouse.gov/ondcp/ondcp-fact-sheets/synthetic-drugs-k2-spice-bath-salts.
The case was prosecuted by Assistant U.S. Attorneys James E. Keller and Carla Higginbotham and investigated by the Drug Enforcement Administration (DEA), including its Office of Diversion Control, Drug and Chemical Evaluation Section, in Arlington, VirginiaNavajo Man from Thoreau Sentenced to Thirty-Five Months in Federal Prison for Assault ConvictionRead the Press Release
ALBUQUERQUE – Eddie Jones, Jr., III, 23, was sentenced this afternoon to 35 months in federal prison followed by three years of supervised release for his assault conviction. Together with his brother and co-defendant, Aldo Jones, 31, Eddie Jones also was ordered to pay $47,574.91 to the Indian Health Services to cover the costs of medical care for the victim of his criminal conduct.
Eddie Jones and Aldo Jones, both enrolled members of the Navajo Nation who reside in Thoreau, N.M., were arrested in Aug. 2013, on a criminal complaint charging them with assault charges arising out of an attack on a 21-year-old Navajo man in Crownpoint, N.M., on July 28, 2013. According to court filings, Aldo Jones and Eddie Jones assaulted the victim for failing to pay a $50 debt. Aldo Jones repeatedly stabbed the victim in the head, upper back and right hand with a screwdriver, and both he and Eddie Jones pummeled the victim with their fists. The victim sustained a life-threatening injury to his head where his skull was punctured. He also sustained stab wounds to his upper back and right hand and a broken nose.
Aldo Jones and Eddie Jones subsequently were charged in a four-count indictment with assault resulting in serious bodily injury and assault with a dangerous weapon arising from the assault on the 21-year-old victim. Aldo Jones also was charged with two assault charges arising out of an attack on a second victim on July 28, 2013, in Littlewater, N.M.
On Dec. 5, 2013, Eddie Jones entered a guilty plea to assaulting the first victim. In his plea agreement, Eddie Jones admitted beating the victim who also was stabbed by Aldo Jones.
The day before (Dec. 4, 2013), Aldo Jones pled guilty to two assault charges and admitted assaulting two victims on July 28, 2013. He admitted assaulting the first victim at approximately 5:00 p.m. by stabbing him with a screwdriver. Aldo Jones also admitted stabbing the second victim with a knife approximately two hours later when the second victim confronted him about stabbing his cousin, the first victim. Aldo Jones was sentenced on May 8, 2014, to 70 months in federal prison followed by three years of supervised release.
The case was investigated by the Crownpoint office of the Navajo Nation Division of Public Safety and was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Mother, Son Convicted in Connection with W.Va. Pain ClinicRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorCLARKSBURG, WEST VIRGINIA – A mother and son were convicted today in connection with the case of a West Virginia physician who is alleged to have prescribed painkillers for non-legitimate medical purposes, according to United States Attorney William J. Ihlenfeld, II.
Lois Ann CRITES, age 50, of Fairmont, West Virginia, who acted as office manager for Dr. Edita Milan, entered a plea of guilty to conspiracy to possess with intent to distribute and to distribute Schedule II and Schedule III controlled substances. CRITES admitted to phoning in prescriptions to pharmacies for numerous individuals to obtain Schedule II and Schedule III controlled substances without a valid medical reason. CRITES also admitted that she assisted Dr. Milan in falsifying the medical records of patients to attempt to justify the medical need for controlled substance prescriptions. CRITES became the office manager for Dr. Milan after CRITES’ sister, the former office manager, was sentenced to prison for drug activities connected to the same doctor’s office.
CRITES, who is free on bond pending sentencing, faces up to 20 years in prison.
Daniel J. QUIRK a/k/a “DJ,” age 30, of Fairmont, and the son of Lois CRITES, entered a plea of guilty to distribution of oxycodone. QUIRK admitted today to selling oxycodone pills in the parking lot of a Fairmont gas station in 2012. QUIRK also admitted that he had been regularly selling pills that he had received through Dr. Milan's office. QUIRK, who is free on bond pending sentencing, faces up to 10 years in prison.
Dr. Milan is presently under indictment and her trial is scheduled for later this year.
The case was prosecuted by Assistant United States Attorney John C. Parr and investigated by the Greater Harrison County Drug and Violent Crimes Task Force, which is comprised of officers and agents from the Bridgeport Police Department, the Clarksburg Police Department, the Drug Enforcement Administration, and the West Virginia State Police, along with support from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
The guilty pleas were taken by U.S. Magistrate Judge John S. Kaull.
More Charges Filed in Case Involving Drug Organization Operating in Perry Housing ProjectsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Buffalo has returned a superseding indictment charging one of 12 defendants with additional charges. Tyshawn Bradley, 28, of Cheektowaga, N.Y., has been charged with possession of a short barreled rifle, possession of firearms in furtherance of drug trafficking, and conspiracy to commit money laundering. The additional charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, a $500,000 fine or both.
Bradley was arrested in April 2013, along with 11 other defendants, for allegedly operating a cocaine base distribution network in the Perry Projects in Buffalo. Also charged: Nannette Brown, 45, Darnell Brown, a/k/a D, 29, Dallas McLamore, a/k/a Ice, a/k/a Dal, 29, Eric Ross, 24, Brandon Atkins, a/k/a YB, 26, Tashawn Gay, 23, Melvin Tucker, a/k/a Hoff, 24, David Varner, 55, Latifah Donaldson, a/k/a LaLa, 22, Tara Robinson, a/k/a Coek, 24 and Phayon Redmond, a/k/a Booper, 28.
Defendants Nannette Brown and Eric Ross have been convicted and are awaiting sentencing.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the Perry Projects case, stated that the investigation focused on the drug trafficking activities of Tyshawn Bradley, Darnell Brown, Dallas McLamore and their associates. According to the indictment, Bradley, Brown, McLamore and Eric Ross operated a cocaine base and cocaine distribution organization on a daily basis out of several apartments within the Perry Housing Projects, including apartments within the high-rise towers located at 124 Fulton Street and 305 Perry Street. The organization also utilized a person under the age of 18 to distribute cocaine base to customers on the grounds of the public housing facility.The superseding indictment is the culmination of an investigation on the part of the Federal Bureau of Investigation Safe Streets Task Force, the New York State Police, under the direction of Major Matthew Renneman, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Monroe County, Kentucky, Physician Charged with Prescribing Pain Medications Outside the Course of Professional Medical Practice Which Resulted in the Death of A PatientRead the Press Release
BOWLING GREEN, Ky. – A Monroe County, Kentucky physician was charged by federal grand jury in Bowling Green, Kentucky today with prescribing pain medications outside the course of professional medical practice, which resulted in the death of a patient, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Clella Louise Hayes, whose medical practice is located in Tompkinsville, Kentucky, was charged in a 13 count indictment with dispensing and distributing Schedule II controlled substances and Schedule III controlled substances outside the course of her professional medical practice. Hayes, age 39, of Glasgow, Kentucky, is charged with issuing and authorizing prescriptions for fentanyl, morphine, Oxycodone, Demerol, hydrocodone, Cheratussin and valium. According to the indictment, the alleged activities occurred between June 2010 through March 2014 and included eight patients.
Specifically, the indictment alleges that on or about September 19, 2011, Hayes intentionally dispensed and distributed the Schedule II pain medication fentanyl to a patient, which resulted in the patient’s death. Further, between June 2009 and September 2011, Hayes is alleged to have intentionally dispensed and distributed Schedule II controlled substances to the same patient, outside the course of professional medical practice, by issuing and authorizing prescriptions for morphine, Oxycodone, and Demerol. During the same time period, the indictment charges Hayes with prescribing the Schedule III medication hydrocodone to the same patient outside the course of professional medical practice.
If convicted at trial, Hayes faces a minimum sentence of 20 years in prison, and a maximum sentence of life in prison, a fine of up to $2,500,000 and three years of supervised release.
This case is being prosecuted by Assistant United States Attorney David Weiser and is being investigated by the Kentucky State Police (KSP) Drug Enforcement/Special Investigations West, and the Federal Bureau of Investigation (FBI) with assistance from the Tompkinsville Police Department.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Milwaukee Man Pleads Guilty to Sex Trafficking OffensesRead the Press Release
Najee C. Moore, 23, of Milwaukee, pleaded guilty today to five counts of conspiracy to engage in sex trafficking and one count of use of a facility in interstate commerce in aid of racketeering in the U.S. District Court for the Eastern District of Wisconsin.
According to documents filed in court, from 2007 through 2013, Moore engaged in multiple conspiracies knowing or in reckless disregard of the fact that means of force, fraud or coercion would be used to cause both minor and adult victims to engage in commercial sex acts in Milwaukee and elsewhere. Moore also used an internet website to promote his illegal enterprise.
“Bringing human traffickers to justice is a top priority of the Department of Justice,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “The Civil Rights Division is committed to the vigorous prosecution of those who prey upon, abuse, and exploit others for their own financial benefit.”
“Here in Eastern Wisconsin and throughout the nation, our focused and effective teams of investigators and prosecutors—federal, state, local and tribal—continue to identify, pursue and bring to justice those people who engage in this type of invidious criminal conduct,” said U.S. Attorney James L. Santelle for the Eastern District of Wisconsin. “Today’s plea reflects that unyielding commitment to address commercial sex trafficking in a manner that assists and supports the vulnerable victims of it and that responds to the legitimate community outrage over this destructive conduct.”
“Child prostitution remains a persistent threat to children in Wisconsin and across America,” said FBI Special Agent in Charge of the Milwaukee Field Office Robert J. Shields. “This investigation serves as a reminder that the predators that commit these crimes can reside anywhere. The FBI and its law enforcement partners remain committed to pursuing and stopping these subjects where ever they operate."
“This case is another example of how successful law enforcement can be when resources are combined to focus on those who engage in criminal behavior,” said Wisconsin Department of Justice – Division of Criminal Investigation (DCI) Administrator David Matthews. “Having received a tip, law enforcement at the state, local and federal levels – as part of the Human Trafficking Task Force – worked this case jointly to share information and support investigative efforts, all of which resulted in the arrest and successful prosecution of Najee Moore. I thank all of those involved for their contributions toward bringing justice in this case.”
“I’m proud of the work of the human trafficking investigators assigned to our Sensitive Crimes Division,” said Milwaukee Police Chief Edward Flynn. “Their partnered efforts with federal officials continues to result in the successful apprehension and prosecution of dangerous sexual predators.”
This prosecution is the result of the joint investigation by the Human Trafficking Task Force for the Eastern District of Wisconsin and was the work of cooperative efforts between enforcement agencies including the FBI, Milwaukee Police Department, Wisconsin Department of Justice - DCI, Homeland Security Investigations the U.S. Attorney’s Office for the Eastern District of Wisconsin and the Civil Rights Division.
The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division.
Middleburg Man Arrested for Possession of Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the arrest of Orlando Justin Gomez (54, Middleburg). Gomez is charged in a criminal complaint with possession of child pornography. If convicted, he faces a mandatory minimum penalty of 10 years, up to a maximum penalty of 20 years in federal prison.
According to the complaint, on June 10, 2014, Gomez, who is a registered sexual predator, was found to be in possession of multiple images depicting prepubescent minors engaged in sexually explicit conduct.
A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case is being investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Diidri Robinson.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Michigan Woman Admits Role in $65 Million Stolen Identity Income Tax Refund Fraud SchemeRead the Press Release
NEWARK, N.J. – A Michigan woman today admitted her role in one of the nation’s largest and longest running stolen identity refund fraud schemes ever prosecuted, U.S. Attorney Paul J. Fishman announced.
Rosa Marmol, 36, of Grand Rapids, Mich., pleaded guilty today before U.S. District Judge Claire C. Cecchi, to a superseding information charging her with conspiracy to defraud the United States and theft of government property. Marmol had been previously indicted on these charges in February 2014.
According to documents filed in the case and statements made in court:
Stolen Identity Refund Fraud (SIRF) is a common type of fraud that results in more than $2 billion in losses annually to the U.S. Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico;
- They complete Individual Income Tax Return 1040 Forms using the fraudulently obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 form are entitled to tax refunds – when in fact, the various tax withholdings indicated have not been paid and no refunds are due;
- They direct the U.S. Treasury Department to issue the refunds through checks to locations they control or can access, in various ways;
- SIRF perpetrators generate cash proceeds. Some sell the checks at a discount to face value. The buyers then cash the checks at banks or check cashing businesses or deposit them into bank accounts.
Federal law enforcement agencies, recognizing that SIRF was a serious problem, created a multi-agency task force in New Jersey composed of investigators from the IRS and the U.S. Postal Inspection Service, along with the U.S. Secret Service, and with assistance from the Drug Enforcement Administration (the New Jersey Task Force).
An investigation led by the New Jersey Task Force with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, has revealed that starting as early as 2007, dozens of individuals in the New Jersey and New York area have been engaged in large-scale, long-running SIRF scheme that has caused more than 8,000 fraudulent 1040 forms to be filed, seeking more than $65 million in tax refunds, with losses to the U.S. Treasury of more than $12 million.
Members of the conspiracy obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. They used those identifiers to create fake 1040s, which falsely reported wages purportedly earned by the “taxpayers” and taxes purportedly withheld, to create the appearance that the “taxpayers” were entitled to tax refunds. The returns were filed electronically. By tracing the specific IP addresses that submitted them, law enforcement officers learned just a handful of IP addresses created many of the fraudulent forms that led to the issuance of tax refund checks.
Marmol and the other members of the conspiracy then gained control of checks, sometimes bribing mail carriers to intercept checks and deliver them to other members of the conspiracy. Marmol used the bank accounts of her family’s bodega and check cashing business, Tienda Guadalajara Jalisco, in Grand Rapids to negotiate the checks she cashed.
During the course of the investigation, members of the task force identified certain “hot spots” of activity and intercepted more than $22 million in fraudulently applied for refund checks before they were delivered to members of the conspiracy.
U.S. Attorney Fishman praised special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Inspector in Charge Maria L. Kelokates; the U.S. Secret Service, under the direction of Special Agent In Charge James Mottola; and the Drug Enforcement Administration, under the direction of Acting Special Agent in Charge Carl Kotowski, for the investigation leading to today’s guilty plea.
The conspiracy count carries a maximum potential penalty of five years in prison and a $250,000 fine. The count of theft of government property carries a maximum potential penalty of 10 years in prison and up to a $250,000 fine. Sentencing is scheduled for Sept. 10, 2014.
The government is represented by Assistant U.S. Attorneys Danielle Alfonzo Walsman of the U.S. Attorney’s Office’s Health Care and Government Fraud Unit.
14-215Defense counsel: Damian Conforti Esq., Newark
Marmol, Rosa Superseding Information
Methamphetamine Deals Lands Laredoan in Federal PrisonRead the Press Release
LAREDO, Texas - Carlos Mercado, 39, has been ordered to prison following his conviction for transportation with intent to distribute 2.7 kilograms of methamphetamine, announced United States Attorney Kenneth Magidson. A federal jury convicted the Laredo resident on April 8, 2104, following a two-day trial.
Today, Senior U.S. District Judge George Kazen handed Mercado a total sentence of 160 months in federal prison followed by a five-year-term of supervised release. At the hearing, Judge Kazen admonished the defendant that the people who suffer the most from these lengthy prison sentences are the defendants’ families.During trial, the jury heard testimony that on April 11, 2012, Mercado left his South Laredo home and traveled to a Wal-Mart parking lot located on 2320 Bob Bullock Loop at Clark Boulevard where he met with an undercover agent to arrange for the transportation of 2.7 kilograms of methamphetamine to Dallas. Mercado handed the undercover agent a child’s backpack containing the methamphetamine, then followed him to a car wash where the agent concealed the drugs in a hidden compartment. Mercado followed the undercover agent up Interstate Highway 35 until making a U-turn one mile before the IH-35 Checkpoint.
Mercado will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Christopher S. Coker prosecuted the case.
Manhattan U.S. Attorney Recovers $35,000 on Behalf of A United States Army Reserve Member from Cohere Communications, LLC and Its President, Steven T. Francesco, for Violations of the Uniformed Services Employment and Reemployment Rights ActRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced today that the United States Attorney’s Office settled a federal civil rights lawsuit brought on behalf of United States Army Reserve member William J. Pfunk (“Pfunk”), against COHERE COMMUNICATIONS, LLC (“COHERE”) and its president, STEVEN T. FRANCESCO (“FRANCESCO”). The lawsuit, which was filed in Manhattan federal court in December 2012, alleges that COHERE and FRANCESCO willfully violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”) by terminating Pfunk’s employment because of his military service obligations and refusing to reemploy Pfunk upon his return from military service. The settlement, which was approved yesterday by United States District Judge Paul A. Engelmayer, requires COHERE and FRANCESCO to pay Pfunk $35,000 in lost wages and other damages and to implement a policy for military leaves of absence.
Manhattan U.S. Attorney Preet Bharara said: “Our soldiers should not have to be concerned that answering a call to serve their country means sacrificing their civilian jobs. This Settlement Agreement demonstrates that when employers disregard their legal obligations under USERRA, our Office will use all the legal tools available to us to hold them responsible for their violations and ensure compliance with the law in the future.”
According to the Complaint and other documents filed in Manhattan federal court:
Pfunk began working at COHERE, a telecommunications company located in Manhattan, in November 2011. Pfunk has been a member of the United States Army Reserves since 2006 and currently holds the rank of staff sergeant. In early April 2012, Pfunk received military orders requiring him to report to a four-day training event on April 9, 2012. Pfunk notified FRANCESCO that – due to his military obligations – he would be absent from work during the week of April 9, 2012. In response, FRANCESCO referred to Pfunk’s military obligations as “elective activities” and terminated Pfunk’s employment effective immediately. Pfunk requested an opportunity to discuss the situation with FRANCESCO upon his return from military service, but FRANCESCO declined to meet with him. Thereafter, a representative of Employer Support for the Guard and Reserve, an agency of the Department of Defense, contacted FRANCESCO in an effort to restore Pfunk’s employment, but FRANCESCO refused to reemploy Pfunk. When Pfunk informed FRANCESCO that he believed his rights under USERRA had been violated and that he would be seeking legal counsel if FRANCESCO was not willing to resolve the matter, FRANCESCO responded, “If you want a war, I can impact your life more than you can screw with mine” and advised Pfunk that he was “not to stop by for any reason.”
On May 28, 2014, Judge Engelmayer entered an Opinion and Order granting in part Pfunk’s motion for summary judgment and rejecting the contention by COHERE and FRANCESCO that Pfunk was an intern not entitled to the protections of USERRA. The Court held that no reasonable jury could conclude on the facts presented that Pfunk was an intern, and that, as a matter of law, Pfunk was an employee of COHERE for purposes of USERRA.
In the Settlement Agreement, COHERE and FRANCESCO admit and acknowledge that, within one day of FRANCESCO receiving an e-mail from Pfunk notifying him that Pfunk was going to be absent from work due to a military obligation, FRANCESCO terminated Pfunk’s employment with COHERE. COHERE and FRANCESCO also agree to compensate Pfunk for lost wages and other damages, implement a Military Leaves of Absence Policy that explicitly states that COHERE and FRANCESCO will take no adverse action against any employee or applicant for employment because he or she has taken, or expects to take, USERRA protected leave during the course of his or her employment, and to review the policy, in person, with all COHERE employees.
This case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorneys Christine Schessler Poscablo and Lara K. Eshkenazi are in charge of the case.
William Pfunk v. Cohere Communications, LLC and Steven T. Francesco Opinion and Order
William Pfunk v. Cohere Communications, LLC and Steven T. Francesco Settlement AgreementMalheur County Man Sentenced to 63 Months for Being a Felon in Possession of Firearms and AmmunitionRead the Press Release
EUGENE, Ore. – Cory Homestead, 35, of Nyssa, Oregon, was sentenced today by U.S. District Chief Judge Ann Aiken to 63 months in federal prison for unlawful possession of firearms and ammunition. Upon his release from prison, Homestead will be on supervised release for three years.
On August 15, 2012, Nyssa Police Department Officers responded to a domestic violence call and learned that Homestead had violently assaulted the female victim and fled with two firearms. Officers soon thereafter located Homestead passed out in his vehicle in possession of a loaded 9mm pistol and a .40 caliber pistol. Homestead has a history of domestic violence and has prior felony convictions for conspiracy to commit robbery, theft, and possession of a controlled substance.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Nyssa Police Department, and was prosecuted by Assistant U.S. Attorney Nathan J. Lichvarcik.
Loan Broker and Attorney Plead Guilty to Defrauding Investors of More Than $1 Million and to Obstructing Judicial ProceedingsRead the Press Release
Baltimore, Maryland - Mervyn A. Phelan, Sr., age 74, of Newport Beach, California, and Gregory E. Grantham, age 56, of Oceanside, California, pleaded guilty late yesterday to a wire fraud conspiracy, wire fraud and obstruction of justice.
The guilty pleas were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Phelan operated a small company called IAG Underwriters, LLC that maintained an office in Newport Beach, California. IAGU was in the business of underwriting loan applications submitted by real estate developers and then locating project financing from banks and other financial entities. Grantham, an attorney, held the position of IAGU’s general counsel on a part-time basis as a contract employee.
According to their plea agreements and court documents, between mid-2010 and August 2011, Phelan and Grantham became involved in a fraudulent scheme carried out by Patrick McCloskey and Brian McCloskey, who both resided in Baltimore County. McCloskey owned a real estate development business known as the McCloskey Group, LLC, while Belzner, a home builder, began working with McCloskey in late 2008 or early 2009. Phelan and IAGU began working with the McCloskey Group trying to locate sources of financing for its projects in about 2009.
Beginning in 2009 and continuing through June 2011, Belzner and McCloskey persuaded a series of private money lenders to loan them funds to establish that the McCloskey Group had additional reserves of liquidity that would supposedly help it obtain loans it was seeking in connection with real estate development projects through IAGU. Belzner and McCloskey falsely represented that the funds would be maintained in an escrow account under the control of Kevin Sniffen, a licensed attorney and escrow agent in Baltimore County; that the funds would not be used for any other purpose; and that the money would be returned to the lender, either upon the funding of the loan or after a specified period of time. In return for this temporary use of the lender 's funds, Belzner and McCloskey promised to pay substantial fees or interest. In fact, once the lenders transferred their funds into the escrow accounts, Belzner directed McCloskey to remove those funds from the escrow accounts without the knowledge or permission of the lenders. Belzner and McCloskey then used the majority of the stolen funds to pay for their personal and business expenses. The total losses resulting from the scheme were approximately $20 million. Belzner, McCloskey, and Sniffen have all previously entered guilty pleas in connection with their role in the scheme.
Beginning in about the late summer of 2010, Phelan and Grantham co-operated with Belzner and McCloskey in their scheme to defraud by (1) making false representations to help persuade private lenders and investment partnerships to loan sums of money to the McCloskey Group for the purposes of meeting “liquidity” requirements imposed by IAGU or various prospective lenders and to place these funds in an escrow account controlled by Kevin Sniffen; and by (2) making false representations to dissuade previous escrow account lenders from demanding the return of their funds when the original time period established for the loan expired without the McCloskey Group obtaining financing for the project in question. In particular, Phelan and Grantham repeatedly advised various escrow account lenders that funding on a particular project was imminent when they knew this was not the case, and in one case represented that they were now holding millions of dollars in escrow funds tendered by one group of lenders when this was not true.
While Phelan and Grantham admitted that they made false statements to escrow account lenders during the scheme at Belzner’s and McCloskey’s behest, they asserted that for most of the time period in question, they did not know that Belzner and McCloskey had previously stolen the escrow account funds. Under his plea agreement, however, Grantham admitted that he was criminally responsible for the loss of $1.2 million funds suffered by an investment entity named Murcielago, LLC in June 2011. As part of his plea agreement, Phelan admitted that he was criminally responsible for the loss of more than $2.5 million in escrow funds and pled guilty to a count charging him with making false representations about the control of $4.350 million in escrow funds to an escrow account lender in November 2011. The government continues to maintain that Phelan and Grantham shared criminal responsibility for the loss of over $20 million in escrow funds. The Court will consider evidence and make a finding on this issue at the defendants’ respective sentencings.
Phelan and Grantham also pleaded guilty to obstructing grand jury proceedings from September to December, 2012. During the summer and fall of 2012, a grand jury sitting in the District of Maryland was continuing the investigation of the fraud scheme. By this time, Belzner had already been indicted for conspiracy to commit wire fraud and this fact was publicly known. On September 26, 2012, FBI agents served Grantham and Phelan with grand jury subpoenas which called for the production of documents relating to the scheme. Thereafter, Phelan and Grantham agreed that they would not produce certain responsive records that were then on their computers or in their possession, because those particular records would reveal their cooperation with and assistance to Belzner and McCloskey in providing false information to the escrow account lenders and their counsel. The records that Phelan and Grantham were willing to produce were provided to the FBI on November 19, 2012; incriminating records were not produced or were deleted from their computers and compact discs.
Phelan and Grantham face a maximum sentence of 20 years in prison each on each charge of conspiracy and wire fraud, as well as a maximum sentence of five years in prison for obstruction of justice. U.S. District Judge James K. Bredar has scheduled sentencing for Phelan and Grantham on September 8 and 15, 2014, respectively.
Patrick J. Belzner, a/k/a “Patrick McCloskey,” age 45, of Glen Arm, Maryland, Brian McCloskey, age 42, of Baltimore and Kevin Sniffen, age 52, of Phoenix, Maryland have each pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI and IRS – Criminal Investigation Division for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Jefferson M. Gray and Kathleen O. Gavin, who are prosecuting the case.
Latrobe Post Office Employee Stole $55K in Money Orders and CashRead the Press Release
PITTSBURGH – A Westmoreland County woman pleaded guilty in federal court to a charge of misappropriation of postal funds, United States Attorney David J. Hickton announced today.
Jessica L. Croyle, 32, of Greensburg, Pa., pleaded guilty to one count before Senior United States District Court Judge Maurice B. Cohill, Jr.
In connection with the guilty plea, the court was advised that from Nov. 1, 2012, to July 19, 2013, Croyle, while employed with the United States Postal Service at the Latrobe, Pennsylvania post office, wrongfully converted to her own use, postal money orders and cash having a total value of $55,362.90.
Judge Cohill scheduled sentencing for Sept. 22, 2014 at 3:30 p.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released Croyle on a $25,000 unsecured bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The United States Postal Service, Office of Inspector General, conducted the investigation that led to the prosecution of Croyle.
Laguna Pueblo Man Sentenced to Federal Prison for Assaulting his Intimate PartnerRead the Press Release
ALBUQUERQUE – Miles J. Riley, 25, was sentenced this afternoon to 32 months in federal prison followed by three years of supervised release for his conviction for domestic assault by a habitual offender, announced U.S. Attorney Damon P. Martinez and DuWayne W. Honahni, Sr., Special Agent in Charge of District IV of BIA’s Office of Justice Services.
Riley, a member of the Pueblo of Laguna who resides in Mesita, N.M., was arrested on Nov. 29, 2013, based on a criminal complaint alleging that he assaulted his intimate partner, a Laguna Pueblo woman, by striking her on the face on Aug. 25, 2013. Riley subsequently was indicted and charged with domestic assault by a habitual offender based on his two prior domestic violence convictions in the Pueblo of Laguna Tribal Court.
On Feb. 3, 2014, Riley pled guilty to the indictment and admitted assaulting the victim, his intimate partner, by striking her in the face multiple times with a closed fist on Aug. 25, 2013, in a location within the Pueblo of Laguna. Court records reflect that Riley previously was convicted on domestic violence charges before the Pueblo of Laguna Tribal Court in 2012 and 2013.
This case was investigated by the Laguna/Acoma Agency of BIA’s Office of Justice Services and the Pueblo of Laguna Police Department and was prosecuted by Special Assistant U.S. Attorney David Adams.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Lafayette Tax Preparer Sentenced to 24 Months in Prison for Preparing False ReturnsRead the Press Release
LAFAYETTE, La. – United States Attorney Stephanie A. Finley announced today that Lutricia S. Feast, 52, of Youngsville, La., was sentenced by U.S. District Judge Elizabeth Foote to 24 months in prison and one year of supervised release for preparing false tax returns for herself and for her clients. The Judge also ordered Feast to pay $382,582 in restitution.
According to evidence presented at the guilty plea on November 25, 2013, Feast was a tax preparer in Lafayette Parish from 2001 to 2009. From 2006 to 2009, Feast admitted to only reporting a fraction of her income to the IRS. In one instance on her 2008 tax return, she reported her income as $14,400, when she actually earned $280,170. The defendant admitted during the guilty plea that between 2006 and 2009, her actual income was $830,986. She also admitted that she owes $287,860 in unpaid taxes. Feast filed false information on 22 tax returns in 2009 in order to provide her clients with refunds to which they were not entitled. She listed losses on tax forms in Schedule C, profit or loss from a business, for her clients, but when interviewed, clients said they had no businesses from which to lose money. The false returns caused the IRS to issue $96,915 in refunds that were not owed.“Tax preparers who file fraudulent tax returns by adding fictitious expenses, false deductions and unallowable credits to a taxpayer’s return are taking advantage of the system,” Finley stated. “Preparing false tax returns is a serious crime - anyone who chooses to willfully aid or assist in the preparing or filing of false tax returns, will be prosecuted to the fullest extent of the law. My office stands ready to assist the IRS during their investigation and will hold these tax preparers accountable for receiving tax credits that they are not entitled to receive.”
“Prior to pleading guilty, Lutricia Feast worked as an income tax preparer where she held herself out to be an expert in the field of tax preparation,” stated Gabriel L. Grchan, Special Agent in Charge of IRS Criminal Investigations, New Orleans Field Office. “She manipulated the income and expenses of unsuspecting clients in order to increase their refund. By doing this, Feast was able to generate a larger clientele thus increasing her income — income that she failed to report on her own personal income tax return. Both of these actions are criminal offenses. It is very important that taxpayers do not shop tax preparers for the highest refund, but instead, find a preparer with a sound reputation that will prepare an accurate tax return. When you sign your tax return you are agreeing, under penalty of perjury, that the return is correct.”
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2014. Visit www.irs.gov/Tax-Professionals/Choosing-a-Tax-Professional for more information. In the past decade, the U.S. Department of Justice’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website.
The IRS conducted the investigation. Assistant U.S. Attorney James T. McManus prosecuted the case.Jury Finds Appraiser Guilty of Bank FraudRead the Press Release
PITTSBURGH - After deliberating for approximately five hours, a federal jury of five men and seven women found James Lignelli guilty of three counts of bank fraud, United States Attorney David J. Hickton announced today.
Lignelli, 59, of Presto, Pa., was tried before United States District Judge Terrence F. McVerry in Pittsburgh.
According to Assistant United States Attorney Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that Lignelli was an appraiser who provided fraudulently elevated appraisals in support of fraudulent loan applications in connection with two different mortgage fraud schemes. The first scheme involved Michael Pope, who operated Pope Financial Services and Tiffany Sprouts, who operated Sprouts Mortgage. Lignelli participated in a bank fraud scheme by preparing fraudulently elevated appraisals for the property located in McMurray, Pa., which was sold through the conspiracy for approximately $1.2 million. The second scheme involved a mortgage broker named Michael Staaf, who operated Beaver Financial Services, a mortgage broker company. Lignelli participated in a bank fraud scheme by preparing a fraudulent appraisal for a property located on Perry Highway in the North Hills of Pittsburgh.
Judge McVerry scheduled sentencing for Sept. 26, 2014, at 1:30 p.m. The law provides for a total sentence of 90 years in prison, a fine of $3,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Lignelli. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Joplin Man Indicted for Producing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was indicted by a federal grand jury today on charges related to producing and distributing child pornography.
James Hajny, 49, of Joplin, was charged in a three-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Hajny used a minor victim, identified as “Jane Doe #1,” to produce child pornography in May 2014. Hajny is also charged with distributing pornographic images of Jane Doe #1 over the Internet between Dec. 12, 2013, and May 12, 2014. The indictment also charges Hajny with possessing child pornography on May 19, 2014.
The indictment contains a forfeiture allegation, which would require Hajny to forfeit to the government any property used to commit the alleged offenses, including a laptop computer, two tablet computers two cell phones, an iPod and a digital camera.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and the Joplin, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."James Ortman of Maple Rapids Sentenced to Prison for Submitting False Claims to the Federal GovernmentRead the Press Release
GRAND RAPIDS, MICHIGAN – U.S. Attorney Patrick A. Miles, Jr., announced today that James Francis Ortman, 58, of Maple Rapids, Michigan, was sentenced in U.S. District Court to 24 months’ imprisonment for submitting false claims to the U.S. Department of Housing and Urban Development (HUD). As part of his sentence, Ortman was also ordered to pay restitution to HUD in the amount of $235,412.00. When imposing his sentence, the Hon. Janet T. Neff commented that “these kinds of crimes really are corrosive to our trust and our faith in our government.”
“When used appropriately, HUD grants encourage development and new job opportunities in our local communities,” said U.S. Attorney Miles. “This office will vigorously pursue those who seek to line their own pockets by diverting from their intended purpose scarce grant monies that are funded by the hard-working taxpayers of this district.”
Ortman’s false claims related to grants that were administered by the City of St. Johns and the Michigan State Housing Development Authority (MSHDA), and ultimately funded by HUD. Ortman received the grants to improve the facades of various buildings that he owned in downtown St. Johns and to construct apartments for income-qualified individuals. In order to receive the full amount of the grants, Ortman submitted false invoices and other documents making it appear as if he spent more money on the projects than he actually did. This allowed him to divert grant monies to his various business interests, instead of spending the money on the intended purposes of the grants.
Mr. Barry McLaughlin, Special Agent in Charge, HUD-OIG, stated that his agency has “redoubled our efforts at combatting fraud within grant programs intended to justly benefit the people of Michigan. Mr. Ortman’s sentencing signals the start of our initiative to reduce this growing crime.”
“Theft of HUD grant funding amounts to stealing from hard-working taxpayers,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “The FBI, in concert with our law enforcement partners, remains dedicated to pursuing those who selfishly misappropriate public funds intended for the public good.”
The Detroit office of the U.S. Department of Housing and Urban Development-Office of Inspector General, along with the Lansing office of the FBI, investigated the case. The prosecution of the case is being handled by Assistant U.S. Attorney Ronald M. Stella.
END
Independence Man Indicted for Producing Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was indicted by a federal grand jury today for using a minor victim to produce child pornography.
Morgan Littleton, 32, of Independence, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Littleton used a minor, identified as Jane Doe, to produce child pornography on four separate occasions between Jan. 18 and March 25, 2013.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Teresa A. Moore. It was investigated by the Independence, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Hartford Man Pleads Guilty to Possessing Drugs, FirearmRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that KARL ROYE, also known as “Eagle,” 23, of Hartford, pleaded guilty today before Senior U.S. District Judge Alfred V. Covello in Hartford to one count of possession with intent to distribute cocaine base (“crack”), and one count of possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on September 5, 2013, at approximately 10:22 p.m., the Hartford Police Department’s Shooting Task Force and the FBI’s Northern Connecticut Violent Crimes Task Force executed a state search warrant at ROYE’s Holcomb Street residence. As the search team approached the residence, ROYE drove from his house at a high rate of speed. Officers stopped ROYE at the end of the street and seized from him two cell phones and $640 in cash. A search of ROYE’s residence yielded approximately $2,000 in cash and a money counting machine that were found in ROYE’s bedroom. Searchers also found two backpacks that were hidden above a tiled ceiling in the basement. The backpacks revealed quantities of crack cocaine and marijuana packaged for distribution, two digital scales, drug packaging materials, and a .38 caliber Smith & Wesson, Model 60, revolver.
A firearms trace on the weapon established that it had been reported to the Hartford Police Department in November 2012 as having been stolen from the residence of its owner.
ROYE has been detained since his arrest on September 5, 2013.
Judge Covello scheduled sentencing for September 10, 2014, at which time ROYE faces a maximum term of imprisonment of 20 years for possessing with intent to distribute narcotics, and a consecutive sentence of at least five years of imprisonment for possessing a firearm in furtherance of that crime.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The FBI task force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
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(203) 821-3722 [email protected]Fort Peck Man Sentenced for Glass Bottle StabbingsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on June 6, 2014, before U.S. District Judge Brian M. Morris, DAVID V. CHASER, of the Fort Peck Reservation, was sentenced to a term of 54 months imprisonment, three years supervised release, and a special assessment of $200.
Chaser was charged with and pleaded to three counts of assault after hitting a man over the head with a glass bottle at a house, then taking its jagged remains and stabbing a woman in the face and neck with it. The injuries barely missed her jugular vein and an important artery, which could have led to massive blood loss or death. Chaser then ran to a nearby gas station where he reported to law enforcement that he had just stabbed someone.
The Court sentenced Chaser to 54 months of imprisonment, with three years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Chaser will likely serve all of the time imposed by the court. In the federal system, Chaser does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
This investigation was conducted by the Federal Bureau of Investigation and the Fort Peck Tribes Department of Law and Justice.
Former Lafayette/Opelousas Housing Authority Director Sentenced to 28 Months in Prison for Bribery and Bid Corruption ConspiracyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Walter O. Guillory, 51, of Lafayette, was sentenced by U.S. District Judge Elizabeth Foote, to 28 months in prison and one year of supervised release for receiving bribes while running two housing authorities in the Acadiana area and also for his part in a conspiracy to award bids to a preferred contractor in Opelousas.
According to evidence presented at the guilty plea on February 14, 2014, Guillory served as the Executive Director of the Lafayette Housing Authority (LHA) from June 1998 to October 2010, and he served as Executive Director of the Opelousas Housing Authority (OHA) from November 2005 to November 2010. During this time period, Guillory sponsored a local baseball team. He solicited donations from various vendors and contractors of both the LHA and the OHA for “his baseball team.” From 2006 to 2010, the vendors were expected to make yearly donations in exchange for doing business with the housing authorities. Some of the contributions were spent on personal expenses and not for the baseball team. He solicited and received more than $100,000 in bribes from the vendors between 2006 and 2010.
Guillory also admitted to conspiring with others to circumvent bid laws in order to award construction contracts to one company who performed construction work for OHA. They used the fake bids to make it appear that several companies were placing bids on construction projects, but in fact, there was only one company being considered. In addition, they used interstate wire communication facilities including email transmissions for a variety of purposes, which involved sending and receiving emails related to contracts and false bids. Guillory approved these contracts with full knowledge that the bid rules, laws and regulations were not being followed from 2007 to 2009.
The Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger prosecuted the case.
Former Kansas Man Pleads Guilty to Federal Tax Evasion ChargeRead the Press Release
KANSAS CITY, KAN. – A Kansas man pleaded guilty Tuesday to a federal charge of tax evasion, U.S. Attorney Barry Grissom said.
Kent Price, 57, Kingwood, Texas, pleaded guilty to one count of tax evasion. In his plea he admitted the crimes took place while he and co-defendant Donald Doleshal, 62, Driftwood, Texas, lived in Kansas and were partners and owners of Central States Underwater Contracting, Inc., (CSU), Central States Underwater, Limited (CSUL) and Pilecap, Inc. The companies inspected, surveyed and repaired underwater pipelines, piles, piers, docks and bridges.
In tax years 2002, 2003, 2004 and 2005, Price understated his personal taxable income by a total of more than $340,000. The omission results in taxes due of $53,421.
Price also admitted CSU and Pilecap paid personal expenses for Price and Doleshal that were deducted as business expenses on corporate taxes returns and were not reported as personal income. CSU paid for a Corvette and Saab that were drive by Price and Doleshal’s respective spouses.
Price is set for sentencing Aug. 26. Doleshal pleaded guilty to one count of tax evasion. He is set for sentencing Aug. 19. In both cases, both parties have agreed to recommend a sentence of 36 months federal probation and full restitution of taxes owed.
Grissom commended the Internal Revenue Service and Assistant U.S. Attorney Chris Oakley for their work on the case.
Former Correctional Officers at Big Spring Correctional Center Plead Guilty to Federal ChargesRead the Press Release
Defendants on Duty When an Inmate Commits Suicide
ABILENE, Texas — Former Correctional Officers at Big Spring Correctional Center (BSCC), in Big Spring, Texas, have pleaded guilty to federal charges stemming from a Department of Justice (DOJ) Office of the Inspector General (OIG) investigation that was initiated when an inmate committed suicide in the facility two years ago while they were on duty, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Today, Frederick Hernandez, 45, of Big Spring, appeared before U.S. District Judge Sam R. Cummings and pleaded guilty to one count of making false statements and aiding and abetting. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Last Friday, Christopher Moore, 42, of Dallas, pleaded guilty to one count of misprision of a felony. He faces a maximum statutory penalty of three years in federal prison and a $250,000 fine. Judge Cummings ordered a presentence investigation report for each defendant with a sentencing date to be set after the completion of those reports.
According to plea documents filed in the case, from August 22 - 23, 2012, Hernandez and Moore were assigned to the Flight Line Unit in the Special Housing Unit (SHU) at BSCC; Hernandez was the Officer in Charge. Part of their duties included making mandatory 30-minute safety checks of each cell and conducting six mandatory formal inmate counts during a 24-hour period, beginning at 12:01 a.m., 3:00 a.m., 5:00 a.m., 10:00 a.m., 4:00 p.m. and 10:00 p.m. Each Correctional Officer is further required to certify that the mandatory 30-minute safety check of each cell and the mandatory formal inmate counts were made.
An inmate housed in the Flight Line Unit committed suicide during the 8:00 p.m., to 8:00 a.m. shift on August 22 - 23, 2012, and was discovered during the morning feeding on August 23, 2012.
Hernandez admitted that he completed, signed and submitted to the Department of Justice, as required by law, the “SHU Control Log” forms indicating that formal counts of inmates had been performed from 12:01 a.m. to 5:10 a.m., on August 22 – 23, 2012. Hernandez further admitted he knew the logs were not correct and were false in that the formal counts of inmates were not conducted.
Moore admitted he knew Correctional Officers at BSCC submitted forms to the Department of Justice, as required by law, indicating that safety check rounds were conducted, when, in fact, he knew they had not been conducted. He further admitted that he concealed this fact and failed to advise an authority.
In related cases, two other defendants, James McKinnon, 22, and Jamie Navarette Salgado, 24, each pleaded guilty in September 2013; McKinnon pleaded guilty to one count of misprision of a felony and Salgado pleaded guilty to one count of making false statements and aiding and abetting. In December 2013, McKinnon was sentenced to six months in federal prison and ordered to pay a $500.00 fine. He is presently serving his prison time. McKinnon and Salgado also worked as Correctional Officers assigned to the Flight Line Unit in the SHU at BSCC. Salgado admitted making false entries on logs and falsely indicating he had conducted safety rounds. McKinnon admitted that he knew entries on the logs were incorrect and that he failed to advise an authority.
The Department of Justice Office of the Inspector General conducted the investigation. Assistant U.S. Attorney Paulina Jacobo is prosecuting.
Five Plead Guilty to Large-scale Meth Conspiracy in Southwest MissouriRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that five defendants pleaded guilty in federal court this week to charges related to a large-scale methamphetamine conspiracy.
Jerry Dean Wright, Jr., 38, and his wife, Shannon K. Wright, 36, both of Ozark, Mo., Perry L. Adams, 39, of Springfield, Mo., and Joseph A. Dreckmeier,32, of Gilbert, Ariz., pleaded guilty today in separate appearances before U.S. Magistrate Judge James C. England to the charges contained in a May 6, 2014, federal indictment. Co-defendant Salvador Campos, 32, of Los Angeles, Calif., pleaded guilty on Tuesday, June 10, 2014.
By pleading guilty, Jerry Wright, Adams, Dreckmeier and Campos each admitted that he participated in a conspiracy to distribute methamphetamine between Sept. 4, 2012, and June 5, 2013. They also each pleaded guilty to money laundering. Shannon Wright pleaded guilty to money laundering.
Jerry Wright was involved with a group in the southwest Missouri area that distributed large amounts of methamphetamine. He arranged for multi-pound shipments of methamphetamine to be shipped from Arizona and California to Missouri. Jerry Wright and other members of the conspiracy received the methamphetamine and distributed it in southwest Missouri.
Jerry and Shannon Wright, Adams, Dreckmeier and Campos are among nine co-defendants who have pleaded guilty in this case.
Drug-Trafficking Conspiracy
On April 11, 2013, officers with the Texas Department of Public Safety stopped a vehicle that was carrying approximately nine pounds of methamphetamine. A search of the car revealed that it was registered to Shannon Wright and the insurance was in the name of Jerry Wright. The methamphetamine was intended for delivery to Wright.
In June 2013, an investigation in the state of California led to the stop of several individuals in Missouri. Co-defendant Myrna Aguirre, 42, of Los Angeles, drove a Mercedes to Springfield containing approximately 10 pounds of pure methamphetamine. After delivering it to Springfield, Missouri, Campos and other co-defendants took possession of the Mercedes. They were attempting to deliver it to Jerry Wright, when they were stopped by law enforcement and the methamphetamine was found hidden in the vehicle. Aguirre has also pleaded guilty to her role in the conspiracy.
In October 2012, co-defendants Robert Joseph Cantrell, 42, of Seymour, Mo., and Brandon Hinkley, 35, of Republic, Mo., drove to Arizona and met with Dreckmeier. Dreckmeier arranged for approximately 25 pounds of methamphetamine to be loaded into a rental vehicle, which Hinkley then drove back to Missouri and delivered to Jerry Wright. Cantrell and Hinkley have pleaded guilty to their roles in the conspiracy.
In addition to the 25-pound methamphetamine shipment arranged in October 2012, Jerry Wright arranged with Dreckmeier for at least three other multi-pound shipments of methamphetamine to be sent to Missouri in a VW Beetle that was equipped with a hidden compartment. These shipments were also being sent to Jerry Wright for distribution by him and other members of the conspiracy in southwest Missouri.
Shannon Wright and other members of the conspiracy distributed the methamphetamine in southwest Missouri. Shannon Wright also collected money for Jerry Wright, which had been paid for the distribution of methamphetamine.
During the conspiracy, Adams received small amounts of methamphetamine from Jerry and Shannon Wright and then sold it to others. On April 1, 2013, Adams was stopped by police and found to be in possession of 1/8 ounce of methamphetamine which he had received from Jerry Wright. Adams was also present when Jerry Wright removed a large amount of methamphetamine from a Chevrolet Avalanche in the spring of 2013, which is estimated to be between two to four pounds.
Money Laundering
On March 7, 2013, Adams and Jerry Wright brought $29,600 in cash to Springfield Imports car dealership in Springfield for the purchase of a 2012 Chevrolet Camaro. The money used to purchase the Camaro was derived from the distribution of methamphetamine and the transaction was designed to conceal that fact.
On April 7, 2013, Jerry Wright brought approximately $47,848 in cash to Midwest Auto Group Motors LLC for the purchase of a 2010 Dodge Challenger and a 2010 Chevrolet Camaro. The money used to purchase the Challenger and the Camaro was derived from Jerry Wrights’ distribution of methamphetamine.
On April 8, 2013, Dreckmeier brought $35,000 in cash to Reliable Chevrolet in Springfield for the purchase of a 2013 Chevrolet Camaro. Shannon Wright brought another $8,000 the following day. The transaction was conducted on behalf of Jerry Wright. The money used to purchase the Camaro was derived from the Wrights’ and Dreckmeier’s distribution of methamphetamine.
Forfeiture
Under the terms of today’s plea agreements, Jerry and Shannon Wright must forfeit to the government a 1998 Jaguar, two 2003 Harley Davidson motorcycles, a 2004 Chevrolet SSR, a 2005 Pontiac GTO, a 2006 Chrysler 300C, a 2007 Chevrolet Avalanche, a 2008 Chevrolet Avalanche, two 2010 Chevrolet Camaros, a 2010 Dodge Challenger and a 2012 Chevrolet Camaro, all of which were obtained from the proceeds of the methamphetamine trafficking.
Sentencing
Under federal statutes, Jerry Wright is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $20 million.
Shannon Wright is subject to a sentence of up to 10 years in federal prison without parole, plus a fine up to $250,000.
Adams is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10.5 million.
Dreckmeier is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole, plus a fine up to $10,250,000.
Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Gary Milligan. It was investigated by the Springfield, Mo., Police Department, the U.S. Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Webster County, Mo., Sheriff’s Department and the Ozark, Mo., Police Department.Financial Advisor Indicted for Securities FraudRead the Press Release
Allegedly Altered Monthly Statements to Hide Investment Losses
Baltimore, Maryland - A federal grand jury has indicted Jagveer Singh, age 55, of Clarksville, Maryland, on charges of securities fraud. The indictment was returned yesterday and Singh was arrested today.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Postal Inspector in Charge Gary R. Barksdale of the U.S. Postal Inspection Service - Washington Division.
Singh was an investment advisor who provided investment advice and services to clients in Maryland through two companies he owned, A&S Financial Services, Inc. and later, Synergia Capital Management, LLC. A&S provided financial planning, investment advice and tax services to affluent investors and small businesses. Synergia provided consulting and advisory services in the areas of financial planning, investment advice and business development and management. Both companies were located in Clarksville.
Singh has a Ph.D. in molecular biology, an MBA degree from The Johns Hopkins University, and worked as a licensed stockbroker from 2000 to 2002 at a large financial investment company.
According to the one count indictment, from January 2008 to June 2010, Singh altered a client’s monthly statements from an on-line brokerage firm that executes purchases and sales of securities, before providing those statements to the client, in order to conceal investment losses. Singh increased the market value shown on the monthly statement for numerous securities. In all, Singh altered over 24 monthly statements to hide between $224,747.34 and $53,186.76 in losses in any given month. In addition, during the time when Singh was altering his client’s monthly statements, the account suffered a total loss of about $310,310.70. During this time, Singh obtained $14,382.52 in commissions from the client.
The indictment seeks forfeiture of $324,693.22.
Singh faces a maximum sentence of 25 years in prison followed by three years of supervised release and a fine of $250,000. Singh is scheduled to have his initial appearance today at 3:30 p.m. in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the U.S. Postal Inspection Service - Washington Division for its work in the investigation and thanked Assistant United States Attorney Leo J. Wise, who is prosecuting the case.
Federal Prison Inmate Sentenced for Mail Fraud Against Catholic ChurchRead the Press Release
Claims of Child Sex Abuse Fabricated for MoneyPortland, Ore.—Shamont Lyle Sapp, 50, was sentenced today by United States District Judge Anna J. Brown to 33 months in prison for mail fraud in an unsuccessful scheme to obtain money from four Roman Catholic dioceses through fictitious claims of child sex abuse by priests. A former Pennsylvania resident, Sapp pleaded guilty to pursuing fabricated cases against dioceses in Portland, Oregon; Tucson, Arizona; Covington, Kentucky; and Spokane, Washington, from 2005 through 2010. He filed the fraudulent claims in pending bankruptcy and class action cases while he was a federal prison inmate serving lengthy sentences for ten Pennsylvania bank robberies he committed in 1995.
Each of Sapp’s claims falsely alleged that he had been sexually abused as a teenage runaway in 1978-79. Sapp’s allegations required extensive investigative and legal work by courts, special masters, and the four dioceses before being disproved and dismissed as groundless. The longest case occurred in U.S. District Court in Portland in 2008-2010. It directly incurred $70,000 in legal expenses by the Archdiocese of Portland, which Sapp must pay as restitution as part of his criminal sentence.
This is the second mail fraud case in Portland involving fictitious claims of child sex abuse against a former Portland priest. In 2005, Thomas Edward Smolka received a three-year federal sentence for concocting a similar scheme.
“Fraudulent claims in court, especially by prison inmates, are a serious drain on public and private resources and deserve significant penalties,” United States Attorney Amanda Marshall said. “This is particularly true of fictitious sex abuse cases, which injure the falsely accused and hurt real abuse victims, who frequently remain silent, thinking no one will believe them.”
The nationwide investigation of Sapp was conducted by the U.S. Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Stephen F. Peifer.
Federal Firearm Charge Filed Against Murder SuspectRead the Press Release
KANSAS CITY, KAN. – A federal grand jury Wednesday returned an indictment charging a defendant in a state murder case with a federal firearms violation, U.S. Attorney Barry Grissom said.
Luis M. Murillo-Rosales, 25, who has been living in Kansas City, Kan., is charged with one count of unlawful possession of a firearm by a foreign citizen who is in the United States illegally. In court records it is alleged that on May 25, 2014, the Kansas City, Mo., Police Department responded to a report of a shooting in the 1600 block north of Universal Avenue in Kansas City, Mo. They found a deceased victim and recovered a spent 9 mm shell casing near the body. Witnesses reported seeing a man point a gun at the victim, fire one shot and then flee the scene.
Investigators served a search warrant at Murillo-Rosales’ home in the 1200 block of Ridge Avenue in Kansas City, Kan. They recovered a 9 mm handgun that allegedly was used in the shooting.
Murillo-Rosales was charged in state court in Jackson County, Mo., in connection with the shooting.
If convicted on the federal firearm charge, Murillo-Rosales faces a maximum penalty of 10 years in federal prison and a fine up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
OTHER INDICTMENTS
John Hernandez, 40, Los Angeles, Calif., is charged in a superseding indictment with one count of conspiracy and eight counts of distributing various amounts of methamphetamine. The crimes are alleged to have occurred between Dec. 5, 2013, and May 13, 2014, in Lawrence, Kan.
If convicted, he faces a penalty of not less than 10 years and a fine up to $10 million on the conspiracy count and some of the distribution counts. Sentences on other distribution counts range from not less than five years to not more than 20 years.
The Kansas Bureau of Investigation investigated. Assistant U.S. Attorney Sheri McCracken is prosecuting.
Jeremy Guy, 32, Sugar Creek, Mo., is charged with escaping from federal custody at the Grossman Community Corrections Center in Leavenworth, Kan. The crime is alleged to have occurred May 27, 2014.
If convicted, he faces a maximum penalty of five years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Tris Hunt is prosecuting.
Martin Salgado-Salgado, 39, a citizen of Mexico, is charged with one count of using false documents, four counts of aggravated identity theft, one count of making a false statement on a U.S. passport application, one count of misusing a U.S. passport and one count of making a false claim of U.S. citizenship. The crimes are alleged to have occurred in 2008, 2010, 2012 and 2014 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties: Using false documents: A maximum penalty of 15 years in federal prison and a fine up to $250,000.
Aggravated identity theft: A mandatory consecutive two-year sentence on each count.
Making a false statement on a passport application: A maximum penalty of 10 years and a fine up to $250,000.
Misusing a U.S. passport: A maximum penalty of 10 years and a fine up to $250,000.
Making a false claim of U.S. citizenship: A maximum penalty of three years and a fine up to $250,000.The U.S. Department of State investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.Ex-Wife Sentenced to Five Years in Prison for Distributing Child PornographyRead the Press Release
Ex-Husband Previously Sentenced to Over 24 Years for Producing Child Pornography and Attempting to Entice a Minor to Have Sex
Baltimore, Maryland - U.S. District Judge James K. Bredar sentenced Lori Fisher, age 46, formerly of Bel Air, Maryland, today to five years in prison followed by five years of supervised release for distributing child pornography. Judge Bredar ordered that upon her release from prison, Fisher must register as a sex offender in the place where she resides, where she is an employee, and where she 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 Stephen E. Vogt of the Federal Bureau of Investigation; Commissioner Anthony W. Batts of the Baltimore Police Department; and Baltimore City State’s Attorney Gregg L. Bernstein.
According to her plea agreement and court documents, at the request of her then husband David Fisher, Lori Fisher took approximately 50 photos, a number of which were sexually explicit, of two minor females on at least two occasions between August and December of 2008. Lori Fisher took the photos with her cell phone and texted the images to David Fisher. The Fishers have subsequently divorced.
On November 4, 2012, the Baltimore Police Department received information that images and videos of child pornography were seen on David Fisher’s external hard drive at his residence. A search warrant was executed at David Fisher’s home on November 20, 2012, and computers, cell phones and other items were seized. The sexually explicit images of the victims were found on the computer and cell phone. In all, over 2,200 images and 100 videos of minors engaged in sex, including prepubescent minors, were recovered.
On March 14, 2013, an undercover police detective contacted David Fisher on Facebook posing as a 14 year old female. David Fisher subsequently communicated with the undercover detective through Facebook and email, often using a computer at a public library because his home computer was seized during the search of his residence in November 2012. David Fisher gave the undercover detective his cell phone number and proposed meeting to engage in sex. A meeting was arranged for April 11, 2013. David Fisher was arrested when he arrived at the meeting.
Judge. Bredar sentenced David Ralph Fisher, age 43, of Baltimore, on April 22, 2014 to 293 months in prison followed by lifetime supervised release for producing child pornography and attempting to entice a minor to engage in sex.This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Baltimore Police Department and Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the case.
Essex County, N.J. Contractor Admits Defrauding Bronx Home OwnerRead the Press Release
TRENTON N.J. - An Essex County, N.J. contractor who was paid nearly $100,000 to renovate the home of a Bronx, N.Y., woman, today admitted his role in defrauding her of the money in connection with the remodeling project, U.S. Attorney Paul J. Fishman announced today.
Raymond Norville, 45, of Orange, N.J., owner of RRL Unique Homes Inc., a construction company, pleaded guilty before U.S. District Judge Joel A. Pisano in Trenton federal court to a superseding information charging him with one count of conspiracy to commit wire fraud.
According to documents filed in this case and statements made in court: In 2011, Norville was a contractor who owned RRL Unique Homes Inc. The victim, identified only as “C.P.,” wanted to renovate her newly purchased home in the Riverdale section of Bronx. Norville agreed to perform the renovations on the residence for $250,000. He submitted invoices to C.P., inducing her to pay him $98,600 in cash for the purchase of materials, supplies, architectural plans, rental equipment and permits needed for the project. Norville emailed pictures of materials that he intended to purchase. Norville neither delivered to the job site, nor provided proofs of purchase for the materials. By May 2011, work on the project had not started and C.P. demanded either a refund or the materials and supplies Norville promised to buy. Norville attempted to repay a portion of the $98,600 by providing C.P. with a check for $24,500, which was rejected for insufficient funds.
The count of conspiracy to commit wire fraud carries a maximum potential penalty of five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 17, 2014.
U.S. Attorney Fishman credited special agents of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Special Agent in Charge Cheryl Garcia for the New York Region; and detectives of the Waterfront Commission of New York Harbor, under the direction of Commissioner Jan Gilhooly, for the investigation leading to today’s guilty plea.The government is represented by Senior Litigation Counsel V. Grady O’Malley in Newark.
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Defense counsel: David P. Schroth Esq., TrentonNorville, Ray Information
Eight Individuals Sentenced in Federal CourtRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Matthew Lyman, Public Affairs Specialist/Community Outreach CoordinatorELKINS, WEST VIRGINIA – Eight individuals appeared before Chief Judge John Preston Bailey for sentencing, according to United States Attorney William J. Ihlenfeld, II.
Ricky Lee TOWNSEND, age 53, of Coxs Mills, West Virginia, was sentenced to 100 months in prison and three years of supervised release for possession of materials used in the manufacture of methamphetamine. The Court ordered that TOWNSEND’s sentence run concurrent with the Gilmer County state sentence he is currently serving on drug-related charges; therefore, TOWNSEND was remanded to state custody. This case was investigated by the West Virginia State Police.
Barbara Ann SPIVA, age 48, of Elkins, was sentenced to 37 months in prison and three years of supervised release for maintaining a drug-involved premise in Randolph County for the purpose of manufacturing, storing, distributing and using methamphetamine. SPIVA was remanded to the custody of the United States Marshal pending designation to a Federal institution. This case was investigated by the Randolph County Sheriff’s Department and the West Virginia State Police.
The TOWNSEND and SPIVA cases were prosecuted by Assistant U.S. Attorney Stephen D. Warner.
Chad Frederick ARBOGAST, age 35, of Belington, West Virginia, was sentenced to 46 months in prison and three years of supervised release for the distribution of oxycodone on July 8, 2013. ARBOGAST who is free on bond, will self-report to the designated Federal institution on July 15, 2014.
Jonathan Scott HEALEY, age 30, of Elkins, was sentenced to 24 months in prison and one year of supervised release for the use of a communication device to facilitate a drug felony. The Court ordered that HEALEY’s sentence run consecutive to a state sentence he is currently servicing for 3rd degree shoplifting, and therefore, HEALEY was remanded to state custody.
Keith Allen POTEETE, age 48, of Elkins, was sentenced to 24 months in prison and four years of supervised release for the distribution of buprenorphine within 1,000 feet of the Davis
Street Park Playground. POTEETE, who is free on bond, will self-report to the designated Federal institution on July 15, 2014.
Charles Jacob FREEMAN, age 26, of Beverly, West Virginia, was sentenced to 12 months and 1 day in prison and four years of supervised release for the distribution of alprazolam within 1,000 feet of the Beverly Manor. FREEMAN, who is free on bond, will self-report to the designated Federal institution on July 15, 2014.Kenneth Franklin PUDDER, age 32, of Elkins, was sentenced to three years of probation for maintaining a drug-involved premise for the purpose of unlawfully storing and distributing buprenorphine.
These cases were prosecuted by Assistant U.S. Attorneys Shawn A. Morgan and Stephen D. Warner and were the result of the work of the Mountain Region Drug and Violent Crime Task Force, consisting of officers from the West Virginia State Police-Bureau of Criminal Investigations, U.S. Forest Service, Randolph County Sheriff’s Department, Tucker County Sheriff’s Department and the DEA, assisted by the DEA Tactical Diversion Squad.
Ronald SNYDER, age 39, of Buckhannon, West Virginia, was sentenced to 24 months in prison and five years of supervised release for failure to update his sex offender registration. The Court ordered that SNYDER’s sentence be served consecutively with the state sentence he is currently serving for the delivery of marijuana, and therefore SNYDER was remanded to state custody. This case was prosecuted by Assistant U.S. Attorney Morgan and investigated by the United States Marshals Service and the West Virginia State Police.
Department of Navy Employee Pleads Guilty to Stealing over $22,000 from United States NavyRead the Press Release
Memphis, TN – Donna L. Brown, age 45, of Millington, Tennessee, pleaded guilty yesterday to a criminal information charging her with theft of government funds in violation of 18 U.S.C. § 641, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.
According to the criminal information and statements made in court, Brown was an employee of the United States Department of Navy assigned to the Navy Personnel Command Onboard Naval Support Activity Mid-South in Millington, Tennessee. Her primary duties included coordinating travel and processing travel reimbursement claims for Navy families of deceased active duty sailors.
Between June 2012 and March 2013, Brown filed approximately 19 false claims for travel reimbursement with the United States Navy using the personal identifying information (such as Social Security numbers) of family members of deceased Navy sailors. She then deposited the money that she received from these false claims into banking accounts controlled by her and her family members. The Navy’s investigation revealed that Brown unlawfully collected $22,500.19 from the Navy as a result of the false claims that she filed.
Brown faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and three years supervised release. Sentencing is scheduled for September 11, 2014 at 9:00 a.m. before United States District Judge Sheryl H. Lipman.
This case was investigated by the United States Naval Criminal Investigative Service. The case is being prosecuted by Assistant United States Attorney Leetra J. Harris on behalf of the government.Carlisle Resident Charged Federally with Child ExploitationRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today the indictment of Zackary Adam Knight for child exploitation offenses. Knight, 19, of Carlisle, was charged in four separate counts in the indictment handed up by the Grand Jury in Harrisburg.
According to United States Attorney Peter Smith, Knight is charged with aggravated sexual abuse of a minor; production of child pornography; distribution of child pornography; and possession of child pornography. The charges stem from an investigation by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) inter-agency child exploitation task force, with assistance from the U.S. Army Criminal Investigation Division.
The Indictment alleges the crimes were committed at the U.S. Army War College which is within the jurisdiction of the United States.
Knight was taken into custody by HSI special agents on May 9, 2014. At the time, Knight was a resident of a housing area at the War College. After a detention hearing in Harrisburg, Chief United States Federal Magistrate Judge Martin C. Carlson ordered that Knight be detained pending further proceedings.
If convicted of all offenses, Knight faces a maximum possible sentence of life in prison and fines up to $1,000,000.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute of life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case is being prosecuted by Assistant United States Attorney James T. Clancy.
Carbondale Man Sentenced on Heroin OffenseRead the Press Release
Follow @SDILNewsOn June 11, 2014, Michael Burns, 45, of Carbondale, Illinois, was sentenced in U.S. District Court for a heroin offense, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
Burns, who had previously pled guilty to a one-count indictment charging conspiracy to distribute heroin, was sentenced to 188 months in federal prison, 3 years of supervised release following prison, and fined $400. Evidence at the plea and sentencing hearings established that, between August 2012, and August 23, 2013, Burns was involved with others in the distribution of heroin in Carbondale, Jackson County. On multiple occasions between November 2012 and August 2013, Burns sold heroin to confidential sources working for law enforcement. When agents executed a search warrant at Burns’ Carbondale residence, they located heroin, cannabis, drug packaging materials, and a large amount of United States currency. At sentencing, the district court found that Burns was responsible for the distribution of 1.1 kilograms of heroin. Burns was classified as a Career Offender.
The investigation was conducted by the Southern Illinois Enforcement Group and the Drug Enforcement Administration. The Illinois State Police Tactical Response Team also assisted during the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Boise Woman Pleads Guilty to Controlled Substance DeliveryRead the Press Release
BOISE – Joann Ruszkowski, 43, of Meridian, Idaho, pleaded guilty today to one count of distributing a controlled substance, U.S. Attorney Wendy J. Olson announced. Sentencing is set before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise on September 3, 2014.
According to the plea agreement, on June 11, 2012, Ruszkowski knowingly and intentionally distributed to an undercover police officer, 25 pills of 30 mg oxycodone, a Schedule II narcotic and controlled substance, in exchange for $500 in payment. She had obtained the controlled substances by prescription from a provider.
This investigation was initiated by the Meridian Police Department and investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Bedford Man Charged with Distribution and Possession of Child PornographyRead the Press Release
JOHNSTOWN, Pa. – A resident of Bedford, Pa., was indicted on June 3, 2014, by a federal grand jury in Johnstown on charges of distribution and possession of child pornography, United States Attorney David J. Hickton announced today.
The two-count indictment named Wade C. Baer, 30, as the sole defendant.
According to the indictment presented to the court, on Feb. 19, 2013, Baer distributed a picture via the Internet which depicted a minor engaging in sexually explicit conduct, and on March 7, 2013, he knowingly possessed pictures and videos in individual computer graphic files which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Southwest Computer Crime Task Force of the Pennsylvania State Police conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Advisory Committee on American Indian and Alaska Native Children Exposed to Violence Holds Final Public HearingRead the Press Release
The Advisory Committee of the Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence convenes its final public hearing in Anchorage, Alaska, today and tomorrow. The hearing will examine the wide-ranging impact of violence on children in Alaska Native communities and consider programs to effectively support these children and promote healing.
"I am honored to be here in Alaska to have the opportunity to meet leaders and representatives of Alaska's Native villages here today," said Associate Attorney General Tony West. "Despite heroic efforts on the part of law enforcement officers and service providers, the safety and welfare of Alaska Native people are precarious at best. And the ones who are at greatest risk - and who suffer the most - are their children. At the Department of Justice, we believe we have a role in changing the present circumstances - and the future prospects - of native youth."
This public hearing will gather expert testimony from Alaska Native leaders and tribal judges through panel discussions on the prevalence of violence, recommendations in the Indian Law and Order Commission Report specific to Alaska Native youth and the impact of the court system on these youth. Additional panels will discuss specific ways Alaska Native children are affected by violence in their homes and communities and consider recommendations to improve how these children are identified, assessed and treated.
The Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence is composed of a federal working group that includes U.S. Attorneys and officials from the Interior and Justice Departments and a federal advisory committee of experts on American Indian studies, child health and trauma, victim services and child welfare. Former U.S. Senator Byron Dorgan and Iroquois composer and singer Joanne Shenandoah co-chair the 13-member committee.
The advisory committee will draw upon research and information gathered through this hearing and three previous public hearings to draft a final report of policy recommendations to present to Attorney General Eric Holder by late 2014. Previous hearings addressed domestic and community violence in Indian Country; the pathway from victimization to the juvenile justice system; the roles of juvenile courts, detention facilities and the child welfare system; gang violence; and child sex trafficking. The first public hearing was held Dec. 9, 2013, in Bismarck, North Dakota, the second Feb. 11, 2014, in the Salt River Pima-Maricopa Indian Community in Scottsdale, Arizona, and the third April 16-17, 2014, in Fort Lauderdale, Florida.
Attorney General Holder created the task force in 2013 as part of his Defending Childhood initiative to prevent and reduce children’s exposure to violence as victims and witnesses. The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety. For more information about the advisory committee and public hearings, please visit www.justice.gov/defendingchildhood .
Activity for June 3 - 4, 2014Read the Press Release
Wyoming’s Wind River SORNA completed Operation Jessica
U.S. Attorney for the District of Wyoming Christopher A. Crofts announced today that last week, on June 3, and June 4, 2014, on the Wind River Indian Reservation, the Wind River Sex Offender Registration Office, in conjunction with the U.S. Marshal’s Service and the Bureau of Indian Affairs, completed Operation Jessica. The Wind River Sex Offender Registration and Notification Code "WRSORNC" requires all qualifying sex offenders who work, attend school, or reside within the exterior boundaries of the Wind River Reservation, or visit the reservation for a period of 24 hours or more, to register with the Wind River SORNA Office. Every sex offender required to register with the Wind River SORNA was located during Operation Jessica and his/her address verified. Several non-compliant sex offenders were located. Sex offenders who are not properly registered or are otherwise non-compliant are prosecuted in the Shoshone and Arapaho Tribal Court or in the United States District Court.
10 June 2014
Wichita Falls Man Sentenced to 151 Months in Federal Prison for Role in Major Methamphetamine Distribution ConspiracyRead the Press Release
Defendant is the Last of 39 Convicted in Case to be Sentenced
WICHITA FALLS, Texas— A Wichita Falls, Texas, man, Stuart Ray Mitchell, 40, who pleaded guilty in January 2014 to one count of conspiring to possess with intent to distribute and to distribute methamphetamine, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 151 months in federal prison. The announcement was made today by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, Mitchell admitted that on multiple occasions between November 2011 and August 2012, he distributed quantities of methamphetamine, and received payments for it, from customers in the Wichita Falls area. Mitchell’s sources of methamphetamine included co-conspirator Steve Ysasaga, who supplied Mitchell quantities of at least one ounce of methamphetamine at a time. Mitchell distributed quantities of methamphetamine to various individuals in Wichita Falls, and he made payment for the methamphetamine he received from Ysasaga to both Ysasaga and co-defendant Kimberly Williams. Mitchell admits he possessed with intent to distribute at least 50 grams of methamphetamine during the conspiracy.
Ysasaga, 41, of Arlington, Texas, was sentenced in late February 2014 to 240 months in federal prison. Kimberly Williams, 27, was sentenced to 72 months in federal prison in July 2013.
With Mitchell’s sentencing yesterday, all 39 defendants charged in this conspiracy have entered guilty pleas and have been sentenced. Federal prison sentences have ranged from 24 months to 300 months.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Texas Department of Public Safety and the Wichita Falls Police Department investigated this Organized Crime and Drug Enforcement Task Force (OCDETF) case. Assistant U.S. Attorney Mary F. Walters prosecuted.
Wichita Falls Man Sentenced to 110 Months for Possessing Methamphetamine He Intended to DistributeRead the Press Release
WICHITA FALLS, Texas— Leonardo L. Sanchez, of Wichita Falls, Texas, was sentenced yesterday by U.S. District Judge Reed C. O’Connor to 110 months in federal prison, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Sanchez, 37, has been in custody since his arrest in June 2013 on a related federal criminal complaint.
According to plea documents filed in the case, on October 25, 2012, when officers with the Wichita Falls Police Department executed a narcotics search warrant at his home, officers found two semi-automatic pistols in a safe. In Sanchez’s truck, officers located a tube of caulk that contained two small plastic bags containing additional small plastic bags of methamphetamine. Sanchez admitted he possessed this methamphetamine and intended to distribute it later.
The Texas Department of Public Safety, the Wichita Falls Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated; Assistant U.S. Attorney Mary F. Walters prosecuted.
Weight Loss Clinic and Doctor Pay $250,000 to Settle Controlled Substance Act ClaimsRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today the successful resolution of a civil prosecution alleging violations of the Controlled Substances Act (CSA) against Ronnie E. Stone, aka Ron Stone, and Ron Stone M.D. Medical Weight Management Inc. Dr. Stone paid the United States $250,000 to settle the federal claims.
Dr. Stone was the owner and operator of two Sacramento area weight loss clinics. The United States alleged that on various occasions from January 2010 to July 2012, Dr. Stone (1) distributed controlled substances to patients without first performing a physical examination and adequate medical screening of those patients; (2) distributed controlled substances to patients in re-sealable plastic baggies that did not satisfy CSA labeling, packaging and sealing requirements; and (3) failed to properly maintain records and perform required drug inventories. In resolving this case, Dr. Stone admitted the United States’ allegations.
Dr. Stone surrendered the clinics’ DEA Registrations in June 2012. Dr. Stone no longer practices medicine, and he no longer operates the clinics.
United States Attorney Wagner stated: “Physicians are responsible for ensuring that controlled substances are properly prescribed to their patients The practices at the Stone clinics put patients and other potential end-users at risk. The successful resolution of this matter demonstrates the DEA’s and my office’s commitment to enforcing the CSA and protecting the patient community.”
DEA Special Agent in Charge Jay Fitzpatrick stated: “Doctors are entrusted with protecting public health and those who dispense controlled substances without regard put the safety of the community at risk. The DEA will seek appropriate civil remedies when this trust is broken. Today’s settlement holds Mr. Stone responsible for failing to act appropriately.”
Assistant United States Attorney Kurt A. Didier prosecuted the case.
Virginia Businessman Pleads Guilty to Employment Tax Fraud and Theft from Employee Benefit PlanRead the Press Release
William P. Danielczyk Jr., formerly of Oakton, Virginia, pleaded guilty to one count of willful failure to collect and pay over employment taxes for the quarter ending Sept. 30, 2010, and one count of theft or embezzlement from an employee benefit plan for the calendar year 2010, the Department of Justice and Internal Revenue Service (IRS) announced today.
According to court documents, from March 2009 until December 2011, Danielczyk was the executive chairman of Innolog Holdings Corporation, a company that acquired Innovative Logistics Technology Inc. in March 2009. Innovative operated in the government services industry and provided technology-supported logistics services to the U.S. military and various defense organizations. The principal offices for Innovative and Innolog were located in McLean, Virginia, and later in Fairfax, Virginia.
For the third calendar quarter of 2009 through the last calendar quarter of 2011, Danielczyk was the person responsible for collecting, accounting for and paying appropriate payroll tax amounts to the IRS. Although payroll taxes were withheld from the wages of Innovative’s employees, Danielczyk failed to pay both the employee withholdings amounts and the employer’s matching portions to the IRS. The total tax loss for all quarters is $2,232,781.
According to court documents, Innovative employees were permitted to contribute to a qualified pension plan that was administered by an asset custodian, and pursuant to this plan, Innovative withheld participants’ elected contribution amounts from their regular paychecks. The total sum of employee withholdings was to be sent to the asset custodian on a bi-weekly basis. Although Danielczyk was the person responsible for authorizing payments to the asset custodian, he failed to send these payments. The total loss amount associated with this conduct, for 2009 through 2011, is $186,263.
Instead of paying Innovative’s employment taxes and remitting employee withholdings to the asset custodian of the company’s qualified pension plan, Danielczyk made purchases that included $505,871 for the use of a Washington, D.C., football stadium executive suite and $40,000 for the sponsorship of a horse race in Virginia.
Sentencing in this case has been set forSept. 11, 2014. For the employment tax charge, Danielczyk faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000. Danielczyk faces a statutory maximum sentence of five years in prison and a fine of $250,000 for the theft from employee benefit plan charge.
The case was investigated by IRS-Criminal Investigation and the U.S. Department of Labor, Employee Benefits Security Administration, Philadelphia Regional Office. Trial Attorney Tracy L. Gostyla of the Tax Division and Assistant U.S. Attorney Mark D. Lytle for the Eastern District of Virginia are prosecuting the case.
Virginia Businessman Pleads Guilty to Employment Tax Fraud and Theft from Employee Benefit PlanRead the Press Release
WASHINGTON – William P. Danielczyk Jr., formerly of Oakton, Virginia, pleaded guilty to one count of willful failure to collect and pay over employment taxes for the quarter ending Sept. 30, 2010, and one count of theft or embezzlement from an employee benefit plan for the calendar year 2010, the Department of Justice and Internal Revenue Service (IRS) announced today.
According to court documents, from March 2009 until December 2011, Danielczyk was the executive chairman of Innolog Holdings Corporation, a company that acquired Innovative Logistics Technology Inc. in March 2009. Innovative operated in the government services industry and provided technology-supported logistics services to the U.S. military and various defense organizations. The principal offices for Innovative and Innolog were located in McLean, Virginia, and later in Fairfax, Virginia.
For the third calendar quarter of 2009 through the last calendar quarter of 2011, Danielczyk was the person responsible for collecting, accounting for and paying appropriate payroll tax amounts to the IRS. Although payroll taxes were withheld from the wages of Innovative’s employees, Danielczyk failed to pay both the employee withholdings amounts and the employer’s matching portions to the IRS. The total tax loss for all quarters is $2,232,781.
According to court documents, Innovative employees were permitted to contribute to a qualified pension plan that was administered by an asset custodian, and pursuant to this plan, Innovative withheld participants’ elected contribution amounts from their regular paychecks. The total sum of employee withholdings was to be sent to the asset custodian on a bi-weekly basis. Although Danielczyk was the person responsible for authorizing payments to the asset custodian, he failed to send these payments. The total loss amount associated with this conduct, for 2009 through 2011, is $186,263.
Instead of paying Innovative’s employment taxes and remitting employee withholdings to the asset custodian of the company’s qualified pension plan, Danielczyk made purchases that included $505,871 for the use of a Washington, D.C., football stadium executive suite and $40,000 for the sponsorship of a horse race in Virginia.
Sentencing in this case has been set forSept. 11, 2014. For the employment tax charge, Danielczyk faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000. Danielczyk faces a statutory maximum sentence of five years in prison and a fine of $250,000 for the theft from employee benefit plan charge.
The case was investigated by IRS-Criminal Investigation and the U.S. Department of Labor, Employee Benefits Security Administration, Philadelphia Regional Office. Trial Attorney Tracy L. Gostyla of the Tax Division and Assistant U.S. Attorney Mark D. Lytle for the Eastern District of Virginia are prosecuting the case.
Virginia Beach Concert Promoter Pleads Guilty in Fraud SchemeRead the Press Release
RICHMOND, Va. – Kensey Lamonte Wright, 42, of Virginia Beach, Virginia, pleaded guilty today to wire fraud.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Joseph D. Morrison, Assistant Special Agent in Charge of the United States Secret Service’s Richmond Field Office, made the announcement after the plea was accepted by Magistrate Judge David J. Novak.
Wright was indicted on May 6, 2014, by a federal grand jury on a superseding indictment charging eight counts of wire fraud. He faces a maximum penalty of 20 years’ imprisonment, full restitution, and a fine of $250,000 when he is sentenced on September 9, 2014, by Senior United States District Judge James R. Spencer.According to the statement of facts filed with the plea agreement, between January 2007 and December 2013, Wright acted as a representative of Fifth Degree Tours #1, Inc., Fifth Degree Records, Inc., and Turnwright Enterprises, Inc. In that capacity, Wright solicited investors in Virginia and elsewhere to invest in concerts, tours, and similar entertainment events to be held at various locations throughout the United States. Wright represented to investors that the investment funds would be used to produce, promote, or otherwise administer proposed entertainment events, to include events featuring the artists Prince, Beyoncé, Jay Z, R Kelly, and TLC. To solicit investments, Wright promised returns as high as 100% within time periods as short as two weeks to two months. Wright admitted that he knowingly and intentionally misrepresented to investors that their funds would be used to produce or promote the proposed entertainment events, and that he used the vast majority of the funds for his own personal use and benefit, including for gambling and other expenses at various casinos.
As a result of Wright’s ongoing scheme to defraud, investors lost between $750,000 and $1,000,000. The final loss amount will be determined at sentencing and Wright will be ordered to pay that same amount to investors for restitution.
This case was investigated by the United States Secret Service. Assistant United States Attorneys Dominick S. Gerace and Michael Gill are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Video Poker Operator IndictedRead the Press Release
Contact Person: Beth Drake (803) 929-3000
Columbia, South Carolina ----- Larry Flynn, a/k/a “L.W.,” age 39, of Richland County, South Carolina was charged by a Federal Grand Jury in a 2-count Indictment. Larry Flynn was charged with Operation of an Illegal Gambling Business, a violation of Title 18, U. S. C. §1955 and Conspiracy to Commit Money Laundering, a violation of Title 18, U. S. C. §1956(h) for his operation of the gambling business “Magic Minutes.” The maximum penalty Flynn could receive is 10 years imprisonment and a maximum fine of $250,000. The case is a part of an on-going investigation by agents of the IRS Criminal Investigations, FBI, Homeland Security, SLED and the South Carolina Attorney General’s Office and is assigned to Assistant United States Attorneys Jim May and Jay Richardson of the Columbia office for prosecution.#####
United States Attorney Announces Sentence of Carmel Man for Tax EvasionRead the Press Release
Local man underreported taxes for years resulting in over $500,000 in back taxes owed to the government
INDIANAPOLIS – Joseph H. Hogsett, United States Attorney, announced the conviction and sentencing of a Carmel businessman by U.S. District Judge Jane Magnus-Stinson for his role in a scheme to avoid paying income taxes. Joseph C. Scott, 54, Carmel was sentenced to 6 months in a residential community center for tax evasion.
“This type of fraud affects all Hoosiers. Those who cheat the system cheat their neighbors of taxpayer dollars that could be used to positively impact the community,” Hogsett said.
Scott, a CPA, was the sole owner of JS&A, Inc., located in Indianapolis. In 2001, Scott formed a partnership with KSM Business Services, also of Indianapolis. The new partnership was called KSM Profit Advisors, LLC and was run out of Indianapolis. The partnership provided that Scott’s role, via JS&A was to provide consulting services to all clients and run the business. The business agreement stated that Scott’s company, JS&A, would receive the greatest portion of the fees in return for his role in providing services. From 2005 to 2009, Scott failed to prepare federal tax returns for his company, JS&A.
Because of his failure to file tax returns, Scott was able to manipulate and underreport a substantial portion of his income to avoid paying taxes. During the years he failed to file returns for JS&A, Scott withheld nearly $2 million in income, which resulted in nearly $600,000 in taxes owed for those years.
“Our system is based on trust – not only the trust people have for their government but the trust government has in its citizens,” said Hogsett. “When people violate that trust, it is our job to prosecute them to the full extent of the law.”
Underreporting income is one of the most prevalent ways taxpayers attempt to cheat the system. In this case, Scott was convicted of willfully defrauding the federal government by underreporting his income and using his education and training to funnel his income through a corporation he set up without reporting it to the Internal Revenue Service.
Sharon M. Jackson who prosecuted the case for the government said Scott must serve three years of supervised released, one of which is on electronic monitoring, after completing his sentence.
U.S. Attorney's Office to Co-Host CLE Program Celebrating 50Th Anniversary of Title VIIRead the Press Release
Memphis, TN – In commemoration of the 50th anniversary of the passage of Title VII of the 1964 Civil Rights Act, a Continuing Legal Education program entitled, “Remaking America: 50 Years of Title VII of the Civil Rights Act” will be held at the University of Memphis Cecil Humphreys School of Law on Friday, June 13, 2014, from 11 a.m. until 5:00 p.m., announced U.S. Attorney Edward L. Stanton III.
The program, hosted by the United States Attorney’s Office, the Equal Employment Opportunity Commission, the Cecil Humphreys School of Law and the National Bar Association, will feature Paulette Brown, President-Elect of the American Bar Association (ABA) as the luncheon speaker and panelist. Ms. Brown is an attorney with Edwards Wildman in Morristown, N.J. If elected, she will be the first woman of color to lead the ABA. Also in attendance will be P. David Lopez, General Counsel of the Equal Employment Opportunity Commission, Washington, D.C. Other panelists will include federal district judges William J. Haynes, Jr., Brian S. Miller and S. Thomas Anderson, and Tennessee attorneys Donald Donati, Michael Cody, Waverly Crenshaw and Walter Bailey. Attorneys attending the program can receive 4.5 hours of CLE.
As late as the 1960s, it was not uncommon in America to see classified advertisements that openly stated, “White Only,” “Men Only,” “Negroes need not apply,” “No Irish,” “No Jews,” and other equally discriminatory statements. Blacks, women, religious and other minorities were often relegated to the lowest paying and most undesirable jobs.
On July 2, 1964, President Johnson signed Title VII into law. It prohibits discrimination in employment decisions “because of an individual’s race, color, religion, sex, or national origin.” The bill created the Equal Employment Opportunity Commission.
“America has come a long way since the days of the ‘No Colored’ and ‘No Women’ want-ads. While impermissible discrimination still exists, it does not exist in the open and notorious way that it did prior to 1964. African Americans, women and other minorities have made great strides in obtaining employment opportunities once thought unimaginable,” said U.S. Attorney Stanton. “Title VII’s role in opening opportunities for all of America’s citizens cannot be overstated.”
For information about attending this event, contact Brenda Webber at 901-544-0122.Two Members of Largest Counterfeit Goods Conspiracy Ever Charged Admit GuiltRead the Press Release
NEWARK, N.J. – Two members of a massive, international counterfeit goods conspiracy today admitted their roles in the scheme, U.S. Attorney Paul J. Fishman announced.
Ke Dao Jiang, 37, of Queens, and Wu Lin, 31, of Maspeth, N.Y., each pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging them with one count of conspiracy to traffic in counterfeit goods.
According to documents filed in this case and statements made in Court:
From November 2009 through February 2012, the defendants and their conspirators ran one of the largest counterfeit goods smuggling and distribution conspiracies ever charged by the Department of Justice. The defendants and others conspired to import hundreds of containers of counterfeit goods – primarily handbags, and footwear, and perfume – from China into the United States in furtherance of the conspiracy. These goods, if legitimate, would have had a retail value of more than $300 million.
The counterfeit goods were manufactured in China and smuggled into the United States through containers fraudulently associated with legitimate importers, with false and fraudulent shipping paperwork playing a critical role in the smuggling scheme. Some of the conspirators created and managed the flow of false shipping paperwork between China and the United States, and supervised the importation of counterfeit goods, and others controlled the importation of the counterfeit goods into the United States.
Other conspirators managed the distribution of counterfeit goods once those goods arrived in the United States. After importation, the counterfeit goods were delivered to warehouses, and distributed throughout New York, New Jersey, and elsewhere. Certain conspirators paid large amounts of cash to undercover law enforcement officers to assist in the removal of counterfeit goods from the port.Some conspirators acted as wholesalers for the counterfeit goods, supplying retailers who sold counterfeit goods to customers in the United States. Other conspirators were money structurers, who arranged for cash to be wired to China in amounts small enough to avoid applicable financial reporting requirements, to evade detection of the smuggling scheme and related proceeds.
Both Jiang and Wu served as wholesalers and worked with other conspirators to distribute the counterfeit goods to small-scale retailers in New Jersey and New York.Law enforcement introduced several undercover special agents (collectively, the UCs) to the conspirators. The UCs purported to have unspecified “connections” at the port, which allowed the UCs to release containers that were on hold, and pass them through to the conspirators. The conspirators paid the UCs for these “services.” In total, during the course of this investigation, the conspirators provided the UCs more than $2 million.
The UCs recorded dozens of phone calls and in-person meetings with various conspirators. The investigation also utilized several court-authorized wiretaps of telephones and electronic communications.
The conspiracy to traffic in counterfeit goods count carries a maximum potential penalty of 10 years in prison and a fine of $2 million. Sentencing for Lin is scheduled for Oct. 6, 2014, and for Jiang, Oct. 7, 2014.
U.S. Attorney Fishman credited special agents of Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Andrew M. McLees, and special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford, for the investigation leading to the guilty pleas.
The government is represented by Assistant U.S. Attorneys Andrew Pak and Zach Intrater of the Computer Hacking and Intellectual Property section of the Economic Crimes Unit of the U.S. Attorney’s Office in Newark and Nicholas Grippo of the U.S. Attorney’s Office in Trenton.
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Defense counsel: Jiang: Warren Sutnick Esq., Hackensack, N.J.
Lin: Wanda Akin Esq., NewarkJiang, Ke Dao Information
Lin, Wu Information