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2 June 2014
Troy Man Pleads Guilty to Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – DANIEL J. KEMPROWSKI, age 25, of Troy, New York, pled guilty today in Albany to one count of receipt of child pornography and three counts of possession of child pornography before Chief United States District Judge Gary L. Sharpe, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
KEMPROWSKI, who was detained pending his sentencing, faces at least five years and up to 80 years of imprisonment, a lifetime term of supervised release, and fines of $250,000 on each of the four counts. He must also register as a sex offender. KEMPROWSKI will be sentenced in Albany, New York, on September 4, 2014.
As part of his guilty plea, KEMPROWSKI admitted that from June 2010 through September 2012, he downloaded still images and videos of child pornography through a file sharing program. On September 6, 2012, an investigator accessed file sharing network and downloaded four video files depicting child pornography from the defendant’s computer. On January 18, 2013, investigators searched KEMPROWSKI’s residence and recovered approximately 1,300 images and 185 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation, Albany Division, and is being prosecuted by Assistant United States Attorney Jeffrey C. Coffman.
Topeka Man Sentenced in Lawrence Armed RobberyRead the Press Release
KANSAS CITY, KAN. – A Topeka man was sentenced Monday to 57 months in federal prison in connection with an armed robbery in Lawrence, U.S. Attorney Barry Grissom said.
Justin S. Alcorn, 30, Topeka, Kan. pleaded guilty to one count of robbery. In his plea, he admitted that on June 1, 2013, he took part in a robbery in the parking lot of a McDonald’s restaurant at 4911 West 6th Street in Lawrence, Kan.
The victim went to the restaurant to sell the defendants two pounds of synthetic marijuana. After one of the defendants drew a gun, there was a fight and the victim ran into the restaurant to get help. While he was inside, Alcorn and the other defendants stole the synthetic marijuana and other items belonging to the victim.
Co-defendants are: Mario A. King, 35, Topeka, Kan., who was sentenced to 84 months.
Jesse J. Forbes, Jr., 39, Topeka, who is awaiting sentencing.Grissom commended the Lawrence Police Department and Special Assistant U.S. Attorney Trent Krug for their work on the case.
Third Defendant Pleads Guilty in Identity Theft Scheme Involving Miami-Dade County Public Schools Students' Personal Identifying InformationRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Nydia Nelson, 30, of Miami, pled guilty to one count of computer fraud, in violation of Title 18, United States Code, Section 1030, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Co-defendants Pamela Rhim-Grant, 40, and Eugene Moss, 33, both of Miami, pled guilty on April 29, 2014 to the same two charges. Sentencing for Rhim-Grant and Moss is scheduled for July 8, 2014. Sentencing for Nelson is scheduled for July 25, 2014. At sentencing, the defendants face a maximum of five years in prison for computer fraud, and a mandatory term of two years in prison for aggravated identity theft, to run consecutively to any other sentence.
According to court documents, Rhim-Grant was a food service manager at Horace Mann Middle School and an employee of Miami-Dade Public Schools. In connection with her position, Rhim-Grant had Network Computer access to the Miami-Dade Public Schools' Integrated Student Information System (ISIS) database through which Rhim-Grant could access information regarding current and former Miami-Dade County Public Schools students' personal identifying information (PII), including names, dates of birth, and social security numbers.
Court documents also state that from approximately October 2012 through January 21, 2014, Rhim-Grant and co-conspirators Eugene Moss and Nydia Nelson agreed and conspired to access the Network Computer, with the intent to commit stolen identity fraud, for the purpose of obtaining student PII in furtherance of that fraud. Eugene Moss and Nelson placed orders for student PII with Rhim-Grant. Once the order was received, Rhim-Grant accessed the Network Computer and printed student information sheets containing the PII from the ISIS database and delivered them to either Moss or Nelson at a prearranged location. Once in possession, Moss and Nelson used the student PII to file income tax returns seeking fraudulent refunds. The fraudulent refunds were directed either to prepaid debit cards or accounts controlled by Nelson.
According to court documents, Rhim-Grant was paid $10 per student PII in either cash or gift cards. According to Rhim-Grant, approximately 400 student's PII were fraudulently accessed on the Network Computer and delivered to Moss or Nelson pursuant to the scheme.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and the Miami-Dade Schools Police Department. The case is being prosecuted by Assistant U.S. Attorney Frank R. Maderal.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tax Preparer Convicted of Preparing False Tax Returns over A Two Year PeriodRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that LAKINDRA WILLIAMS, age 38, of Baton Rouge, Louisiana, pled guilty today before U.S. District Judge James J. Brady to aiding and assisting in the preparation of false federal tax returns in connection with a federal criminal tax investigation.
As a result of her conviction, the defendant faces up to 3 years in prison, a year of supervised release following imprisonment, and a fine up to $250,000. As part of her plea agreement, the defendant is also prohibited from preparing federal tax returns and from seeking employment with a tax preparation business. A sentencing date has not yet been set.
The defendant’s conviction arose from her work in 2008 and 2009 at a tax preparation business in Baton Rouge. At today’s hearing, the defendant admitted that, while working at the tax preparation business, she prepared numerous fraudulent federal individual income tax returns which reported inflated and fictitious itemized deductions, fictitious business activity, and fictitious and inflated business expenses. As a result of the scheme, the defendant defrauded the federal government out of nearly $100,000.
U.S. Attorney Green stated: “Protecting the taxpayer’s money against fraud is a top priority of this office and the entire U.S. Department of Justice.”
This matter is being handled by the United States Attorney’s Office for the Middle District of Louisiana, the Criminal Tax Division of the United States Department of Justice, and the Internal Revenue Service – Criminal Investigations. It is being prosecuted by Assistant United States Attorney Chris Dippel and Trial Attorney Kevin Lombardi.
Summersville Couple Who Robbed Gun Dealer Enter Federal Guilty PleasRead the Press Release
CHARLESTON, W.Va. – A Nicholas County couple who broke into Johnson’s Sporting Goods in Summersville and stole firearms pleaded guilty to federal firearms charges, announced U.S. Attorney Booth Goodwin. Matthew England, 28 and Lyndsey England, 26, pleaded guilty to possession of stolen firearms before the United States District Judge John T. Copenhaver, Jr. in Charleston.
On September 26, 2011, officers from the Summersville Police Department responded to an alarm at Johnson’s Sporting Goods on Webster Road. Upon arrival they saw signs of forced entry into the business. The owner reported that 14 firearms had been stolen. Several of the firearms were recovered during investigations of other crimes, and in 2013, police traced the stolen firearms to the Englands. Both Matthew and Lyndsey England admitted stealing the firearms when questioned by authorities.
Each defendant faces up to 10 years in federal prison when sentenced. Matthew England entered his guilty plea on May 8, 2014 and is scheduled to be sentenced on August 27, 2014. Lyndsey England entered her plea today and is scheduled to be sentenced on August 27, 2014.
The Summersville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation. Assistant United States Attorney, Joshua Hanks is in charge of the prosecution.
Stroudsburg Man Charged with Passing Counterfeit BillsRead the Press Release
The United States Attorney's Office for the Middle District of Pennsylvania announced today that a criminal information was filed on May 30, 2014, in U.S. District Court in Scranton against Dominick Andino, age 24, of Stroudsburg, Pennsylvania.
According to U.S. Attorney Peter Smith, the information charges Andino with conspiracy to pass counterfeit federal reserve notes at various locations throughout the Middle District of Pennsylvania and elsewhere.
Andino could be imprisoned for up to the statutory maximum term of imprisonment of 5 years and fines in the amount of $250,000.
The case was jointly investigated by the United States Secret Service and the Dickson City Police Department. Prosecution is assigned to Assistant United States Attorney Michelle Olshefski.
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 is 5 years 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.
St. Louis County Man Pleads Guilty to Trafficking Counterfeit GoodsRead the Press Release
St. Louis, MO – RASHAD SHABAZZ, of St. Louis, pleaded guilty to trafficking in counterfeit goods this morning. He appeared before U.S. District Judge Carole E. Jackson, who accepted his plea and set sentencing for August 29, 2014. At sentencing, Shabazz faces up to 10 years imprisonment, a fine of up to $2,000,000 or both.
According to the plea agreement, on November 5, 2013, Shabazz was found to be running an open-air store offering counterfeit apparel from purveyors such as Polo Ralph Lauren, Nike, Timberland and True Religion, as well as counterfeit electronic media. Shabazz admitted that he knew the merchandise he was selling was counterfeit and also admitted he had received the goods from interstate and foreign shipments.
The case was investigated by the St. Louis Metropolitan Police Department and the United States Department of Homeland Security.
Sparks Man Sentenced in Sex Trafficking CaseRead the Press Release
RENO, Nev. – A Sparks, Nev. resident who was trading laptop computers for sex with minor girls, was sentenced today to five years in prison and 10 years of supervised release, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
Shane Deric Bateman, 41, who pleaded guilty on March 3, 2014, to one count of attempted coercion and enticement of a minor for sex, was sentenced by U.S. District Judge Robert C. Jones. Bateman will also have to register as a sex offender.
“We will continue to work with our local and federal law enforcement partners to investigate and prosecute persons who exploit minors for sex,” said U.S. Attorney Bogden. “This includes using federal laws to pursue ‘johns’ or customers of prostitution.”
According to the court records, on Nov. 5, 2013, the Innocence Lost Task Force in Reno was involved in a sex trafficking investigation in which a 16-year-old female victim reported that she had sex with Shane Bateman in exchange for a laptop computer. The 16-year-old provided a Task Force detective with the laptop computer and her cell phone, which she said contained contact information for pimps or “johns.”
On Nov. 6, 2013, Bateman sent an unsolicited text to the 16-year-old’s cell phone indicating that he had another laptop with a built-in web camera which he would be willing to trade for sex with any other young girl that the 16-year-old knew. The detective began communicating with Bateman as if he were the 16-year-old, telling Bateman that “she” had another girl in mind for him and that “she” would have the other girl contact him. On Nov. 7, 2013, the detective, posing as a different 16-year-old named “Kylie,” engaged in text message conversations with Bateman about having sex with him in exchange for a laptop computer. Bateman agreed to meet Kylie that afternoon at a room at a Motel 6 in Reno, Nev. in order to engage in sexual activity in exchange for the laptop computer. When Bateman arrived at the motel room, he was arrested by detectives.
The investigation was conducted by the Innocence Lost Task Force, which is made up of the FBI and the Regional Street Enforcement Team, which includes the Reno Police Department, Sparks Police Department, FBI, and UNR Police Department. The case was prosecuted by Assistant United States Attorney Carla Higginbotham.
The case has been 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."Schaumburg Man Arrested on Federal Charge for Allegedly Transporting Child PornographyRead the Press Release
CHICAGO — A Schaumburg man was arrested and charged with transporting child pornography for allegedly transmitting two pornographic images of a prepubescent minor to an undercover law enforcement officer last week, federal law enforcement officials announced today. The defendant, KURT S. MAYER, was charged in a criminal complaint filed today in U.S. District Court following his arrest Friday night.
Mayer, 34, had an initial appearance Saturday before U.S. Magistrate Judge Geraldine Soat Brown and remains in federal custody pending a detention hearing at 1:30 p.m. Wednesday before Magistrate Judge Brown in Federal Court.
According to the complaint affidavit, a detective with the Washington, D.C., Metropolitan Police Department, who was assigned to an FBI task force and working in an undercover capacity, received an email last Thursday in response to an online advertisement. The user of the email account who responded to the ad was subsequently identified as Mayer.
The undercover officer exchanged a series of emails and instant messages with the individual, later identified as Mayer, during which Mayer allegedly sent the two images depicting child pornography. The undercover officer was able to confirm that that the child was real and that Mayer had just taken the photos as he had claimed in his messages, the complaint alleges.
On Friday, law enforcement agents were able to identify the email account and Internet address associated with the individual who responded to the online advertisement, as well as the identity and address of the customer associated with that Internet address. Mayer was arrested Friday evening near his home at the same time as agents were executing a federal search warrant at his residence.
Transportation of child pornography carries a mandatory minimum sentence of five years in prison and a maximum of 20 years and a $250,000 fine. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and charge were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Schaumburg Police Department assisted with executing the search warrant and Mayer’s arrest. The investigation is continuing, they said.
The investigation was conducted by the FBI’s Child Exploitation Task Force. The task force is part of a nationwide effort known as the Innocence Lost National Initiative targeting those involved in the commercial sexual exploitation of children in the United States. In Chicago, the CETF is comprised of FBI special agents and officers and investigators from the Chicago Police Department, the Cook County Sheriff's Office, and the Cook County State’s Attorney’s Office.
The government is being represented by Assistant U.S. Attorney R. Matthew Hiller.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Rochester Man Sentenced on Drug Trafficking ChargesRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Tremec Jeffries, 38, of Rochester, N.Y., who was convicted of conspiracy to possess with intent to distribute and to distribute 280 grams or more of crack cocaine, was sentenced to 228 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that Jeffries and others purchased large quantities of powder cocaine that they processed into crack cocaine, packaged, and resold in various quantities in Rochester. Jeffries was arrested on August 1, 2013 after he was surveilled by officers arriving at 35 Wakefield Street in Rochester operating his 2004 Chevrolet Avalanche. The defendant unlocked the location with a key and entered. Officers then raided the location and Jeffries, the only person inside, was arrested after attempting to jump out a second story window.
Inside the residence, officers seized 50 grams of crack cocaine, 31 grams of powder cocaine, processing and packaging paraphernalia, a .12 gauge shotgun, and a loaded, Glock .45 caliber semi-automatic pistol that had been reported stolen out of North Carolina in 2010. Jeffries had $1,640 in U.S. currency on his person and the Avalanche contained $15,000 in U.S. currency bundled in $1,000 increments. The cash has been forfeited by the Drug Enforcement Administration as drug money.
The sentencing is the culmination of an investigation on the part of Special Agents of the Drug Enforcement Administration under the direction of Acting Special Agent in Charge, James J. Hunt, New York Field Division, with assistance provided by the Greater Rochester Area Narcotics Enforcement Team (GRANET), and the Rochester Police Department under the direction of Chief Michael Ciminelli, the Monroe County District Attorney’s Office, under the direction of Sandra Doorley, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent in Charge, Thomas J. Cannon, New York Field Division.Rochester Man Charged Receipt and Possession of Firearm SilencerRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Mufid A. Elfgeeh, 30, of Rochester, N.Y., has been arrested and charged by criminal complaint with two counts of receipt and possession of an unregistered firearm silencer. The charges carry a maximum penalty of 10 years in prison for each count.
“In a post 9/11 world, law enforcement takes very seriously any potential threat against the safety and security of our country,” said U.S. Attorney Hochul. “This defendant, on multiple occasions, stated his desire and intention to harm and kill American soldiers as well as his allegiance to terrorist groups whose mission it is to bring devastation upon our country. This defendant will be prosecuted to the fullest extent of the law and so too would any individuals who attempt to inflict an act of terror on the United States or against Americans abroad.”
Assistant U.S. Attorneys Brett A. Harvey and Frank H. Sherman, who are handling the case, stated that according to the complaint, Elfgeeh has expressed his support for various terrorist groups, including al-Qa’ida and the Islamic State of Iraq and the Levant, and the pursuit of violent jihad. Consistent with this ideology, Elfgeeh has discussed a plan to shoot and kill both members of the United States military returning from Iraq and unidentified Shi’a Muslims in the Western District of New York. As part of that plan, Elfgeeh purchased two handguns equipped with firearm silencers and ammunition from a confidential source. The handguns were made inoperable by the FBI before the confidential source gave them to Elfgeeh.
The complaint further states that Elfgeeh first discussed the idea of shooting United State military members in December 2013, when he told a confidential source that he was thinking about getting a gun and ammunition, putting on a bulletproof vest, and “just go[ing] around and start shooting.” Elfgeeh later suggested that he and the confidential source could do something similar to Mohammed Merah, a French-Algerian man who went on a shooting spree in France in March 2012, killing three French soldiers and seriously injuring another. Elfgeeh’s justification for killing United States soldiers was “kill them as they kill you . . . fight them altogether as they fight you all together” and that “you want to stop the killing machine that is happening [in Iraq and Afghanistan] . . . and the only way is to deter them by any means.” Elfgeeh said that, after doing between five and 20 shootings, they (meaning Elfgeeh and the confidential source) would make a video claiming responsibility for the shootings.
In February 2014, Elfgeeh told the confidential source that he needed a handgun and silencer. Elfgeeh later gave the confidential source $1,050 in cash to purchase two handguns, two firearm silencers, and ammunition. On May 31, 2014, the confidential source delivered the two handguns, silencers, and ammunition to Elfgeeh. After Elfgeeh took possession of the items, he was arrested by members of the Joint Terrorism Task Force.
The defendant made an initial appearance today before U.S. Magistrate Judge Jonathan W. Feldman. He is being held pending a detention hearing on June 16, 2014.
The Criminal Complaint was the result of an investigation on the part of the Joint Terrorism Task Force of the Federal Bureau of Investigation.
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.Ringleader of Identity Theft Ring Sentenced to 121 Months in PrisonRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Jennifer Robinson, 36, of West Palm Beach, was sentenced for her participation in a wide-ranging identity theft scheme. Robinson was sentenced to 121 months in prison, to be followed by three years of supervised release. A restitution hearing is scheduled for July 25, 2014 at 11:00 a.m. before U.S. District Judge Kenneth A. Marra in West Palm Beach.
Robinson previously pled guilty to all counts in a superseding indictment, which included one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, twelve counts of wire fraud, in violation of Title 18, United States Code, Section 1343, eleven counts of stealing government monies, in violation of Title 18, United States Code, Section 641, twelve counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and one count of unauthorized access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2).
The scheme involved, in part, stealing the identities of patients at a medical facility in central Florida. Those identities were then used to file fraudulent federal income tax returns in the patients’ names seeking fraudulent refunds, and obtaining fraudulent credit cards which were then used to make fraudulent purchases.
Co-conspirators Elton Baker, 29, Eltonya Wiley, 40, both of Center Hill, and Kawana Brown, 35, of West Palm Beach, previously pled guilty to one count of conspiracy to commit wire fraud and three counts of wire fraud. Elton Baker and Wiley also pled guilty to one count of aggravated identity theft, and Brown pled guilty to two counts of aggravated identity theft. Sentencing for all of the remaining defendants is scheduled for June 13, 2014.
Co-defendants Antoinette Simmons, 40, of Ocoee, and Josh Brown, 25 of Riverdale, Georgia, were sentenced to probation for their roles in the thefts.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Palm Beach County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Repeat Offender Sentenced to 17+ Years for Unlawful Possession of A FirearmRead the Press Release
WICHITA, KAN. – A Wichita man with a record of felony convictions was sentenced Monday to 210 months in federal prison for unlawful possession of a firearm, U.S. Attorney Barry Grissom said.
Juan Sabino Marquez, Jr., 38, Wichita, Kan., pleaded guilty to one count of unlawful possession of a firearm after felony convictions. In his plea, he admitted that on July 26, 2013, officers of the Wichita Police Department stopped his vehicle for an expired tag. They found a Ruger .380 caliber handgun in the car. At the time, Marquez had eight prior felony convictions and was on parole for a gun violation.
Grissom commended the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
Pigeon Forge Resident Sentenced to Serve 151 Months in Prison for Child Pornography OffensesRead the Press Release
KNOXVILLE, Tenn. - Kelly Louise Fitzmaurice, 34, of Pigeon Forge, Tenn., was sentenced by the Honorable Thomas A. Varlan, Chief U.S. District Judge, to serve 151 months in prison for child pornography offenses. Fitzmaurice pleaded guilty in February 2014 to a federal indictment charging her with possession and distribution of child pornography.
According to a plea agreement on file with the U.S. District Court in Knoxville, 28 videos and 177 images of child pornography were found on Fitzmaurice’s computer. Some of the images depicted known child victims, sexually explicit images of prepubescent children, and portrayals of sadistic or masochistic conduct.
The indictment and subsequent conviction of Fitzmaurice were the result of an investigation conducted by the Federal Bureau of Investigation and the Internet Crimes Against Children Unit of the Harriman Police Department. Assistant U.S. Attorney Frank M. Dale, Jr. represented the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Parkersburg Felon Sentenced to Maximum Term for Unlawful Fierarms PossessionRead the Press Release
CHARLESTON, W.Va. – A Parkersburg man, previously convicted of manufacturing a controlled substance, was sentenced today to the maximum statutory term of 10 years in federal prison, announced U.S. Attorney Booth Goodwin. Alan Keith Philpott, 46, pleaded guilty in February of 2014 to possessing 26 firearms in spite of his status as a convicted felon.
On November 1, 2012 and March 21, 2013 police executed search warrants at Philpott’s residence on Elm Tree Drive near Parkersburg. During the first search, police seized 22 firearms – including two stolen firearms, oxycodone, hydrocodone, diazepam, alprazolam, approximately three pounds of marijuana, “bath salts,” and U.S. currency. During the second search warrant, police seized an additional four firearms, hydrocodone, marijuana, and “bath salts.” Philpott had been previously convicted in December of 2006 in the Circuit Court of Wood County of the felony offense of manufacturing a controlled substance.
The West Virginia State Police, Parkersburg Police Department, and the Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Joshua Hanks is in charge of the prosecution.
Omaha Man Sentenced to Sixty Months for Receiving Child PornographyRead the Press Release
United States Attorney Deborah R. Gilg announced that David C. Evans, 35, was sentenced in federal court in Omaha for receiving child pornography. The Honorable Joseph F. Bataillon sentenced Evans to sixty months of prison. There is no parole in the federal system. After his release from prison Evans will be under federal supervision for five years and be required to register as a sex offender.
On July 11, 2012, Evans’ computer was observed by law enforcement officers with images of child pornography available for sharing. Two of the videos involved prepubescent minors engaged in sexual acts.
A search warrant was executed by agents of Homeland Security Investigations on November 14, 2012. Forensic analysis recovered deleted files of child pornography. Search terms consistent with seeking and receiving child pornography were recovered. Four videos of child pornography were found in a shared file folder.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
O'Fallon Man Sentenced to Prison on Fraud ConspiracyRead the Press Release
St. Louis, MO – JASON RAUSCHELBACH was sentenced to 24 months in federal prison after pleading guilty to conspiring to defraud the United States and several banks through his business, The Mortgage Store, Inc., in 2008. United States District Judge Henry E. Autrey imposed the sentence today and also ordered Rauschelbach to pay restitution.
According to court documents, Rauschelbach was the CEO of The Mortgage Store, Inc. (TMS) and the president of Title America. By 2008, TMS was a major mortgage brokering business with officers in four states and hundreds of employees. The main offices were in Westport Plaza and Wentzville. The businesses were operating at a financial deficit in 2008. TMS incurred over $600,000 in federal employment (including withholding) tax liabilities in the first three quarters of 2008 that were not paid over to the United States. There were not sufficient funds available to fund the disbursements from TMS and, in addition, to meet all of the expenses incurred by TMS, including the delinquent employment tax liabilities. In order to meet certain expenses and, at the same time, conceal the absence of adequate funds, Rauschelbach and others at TMS caused insufficient funds checks drawn on the checking accounts of both TMS and Title America to be deposited between those accounts in such a way that the “float” concealed the true balances of each account. The accounts were at Enterprise Bank in Clayton and at the First Bank of the Lake in Osage Beach, Missouri. The TMS account had a negative balance of approximately $850,000 in June, 2008, when the banks stopped accepting the floated checks.Rauschelbach’ s guilty plea also involved submitting a false net worth statement to HUD and failing to pay over about $31,000 in employees’ withholdings for a 401K plan and health insurance. Restitution payments will be first directed to reimburse those employees.
Court documents showed that Rauschelbach received substantial distributions from TMS and Title America in 2008 despite the federal employment tax delinquencies and other unpaid liabilities, as well as the artificial balances being maintained in the TMS and Title America checking accounts. In addition, he and others at TMS directed that TMS funds be paid on loans on properties at Tan Tar A Resorts in the Lake of the Ozarks, and for a ranch property in Breckenridge, Colorado. He was a partial owner of those properties
Rauschelbach, of O’Fallon, Missouri, will voluntarily surrender to a prison facility when it is designated.This case was investigated by the FBI, IRS Criminal Investigation and the Inspector General Offices of HUD and the Department of Labor. Assistant United States Attorney James E. Crowe, Jr., is handling the case for the U.S. Attorney's Office.
North Smithfield Businessman Pleads Guilty to Conspiracy, Tax EvasionRead the Press Release
PROVIDENCE, R.I. – Paul F. Pytko, 49, owner of Pytko Construction Corp. in North Smithfield, R.I., pleaded guilty today in federal court to participating in a conspiracy to conceal the sale of company assets he agreed to sell in order to satisfy more than $1 million dollars owed to the IRS, announced United States Attorney Peter F. Neronha, William P. Offord, Special Agent in Charge of IRS Criminal Investigation and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
Pytko pleaded guilty in U.S. District Court to one count of conspiracy to defraud the United States by evading payments of taxes and one count of tax evasion.
According to information presented to the court, Pytko had agreed to sell several large pieces of construction equipment and that the assets would be used to pay down some of the $1,035,547.91 in debt owed to the IRS in unremitted employee withholding taxes, penalties and interest incurred for tax periods ending in September 2003 through June 2006. Pytko admitted to the court that the equipment was sold but that the proceeds collected were wired into third party accounts and then disbursements paid to him to pay for business expenses and for his own personal use.
According to information presented to the court, on various dates between June 7, 2007 and July 10, 2008, Pytko sold a backhoe, front end loader, screening machine, bulldozer, roller, two excavators and a rock crusher for a total of $611,420. None of the assets were paid to the IRS.
Pytko is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on September 19, 2014.
Conspiracy to evade taxes is punishable by a statutory penalty up to 5 years in federal prison and a fine of up to $250,000. Tax evasion is punishable by a statutory penalty of 5 years in federal prison and a fine of up to $100,000.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose, with the assistance of Assistant U.S. Attorney John P. McAdams.The matter was investigated by IRS Criminal Investigation and FBI.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Member of Largest Countefeit Goods Conspiracy Ever Charged Sentenced to 46 Months in PrisonRead the Press Release
NEWARK, N.J. – A member of a massive, international counterfeit goods conspiracy was sentenced today to 46 months in prison for his role in the scheme, U.S. Attorney Paul J. Fishman announced.
Ming Zheng, a/k/a “Uncle Mi,” 48, of New York, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with a conspiracy to launder money. Judge Salas imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in Court:
From November 2009 through February 2012, Zheng’s co-defendants 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.
Zheng was a money launderer who was introduced to undercover special agents (collectively, the UCs) by co-defendants who were running the counterfeiting operation. Conspirators obtained cash from the UCs, purportedly the proceeds of gambling and other unlawful activities. These other conspirators then provided the money to Zheng. For every $50,000 in cash the UCs provided, Zheng and others would return approximately $42,500 – via wire transfers from banks in China – into a bank account set up by the UCs. When other conspirators received money from the UCs to be laundered, one of the conspirators would then contact Zheng, who in turn contacted a Chinese-based conspirator, and transferred the money to locations in China. Then the money (less the laundering fee) was transferred from Fujian, China, to a bank in Guangzho, China, where it was subsequently withdrawn and physically transported via courier to a bank in Hong Kong. The final transfer was from the bank in Hong Kong to the UCs’ bank account. Zheng was therefore instrumental in each of the money laundering transactions – he received the cash from other conspirators and caused it to be transferred overseas in furtherance of the laundering process.
U.S. Attorney Fishman praised special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-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 today’s sentencing.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: Stacey Van Malden Esq., Bronx, N.Y.Mccluskey Co-Conspirators Sentenced for Participating in Plot to Carjack and Murder Oklahoma CoupleRead the Press Release
ALBUQUERQUE – Tracy Allen Province, 46, and Casslyn Mae Welch, 47, were sentenced today for participating in a plot to carjack and murder a retired couple from Oklahoma in Aug. 2010. U.S. District Judge Judith C. Herrera of the District of New Mexico sentenced Province to five consecutive terms of life imprisonment without the possibility of release as required by his plea agreement. Judge Herrera imposed a 40-year prison sentence on Welch, but delayed imposing judgment for two weeks to permit the parties to submit briefs on a related issue.
The sentences were announced by Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Damon P. Martinez of the District of New Mexico, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division, and New Mexico State Police Chief Pete N. Kassetas.
Province and Welch, and their co-defendant John Charles McCluskey, 49, were charged with numerous capital offenses in an indictment arising out of the Aug. 2, 2010, carjacking and murders of Gary and Linda Haas, both 61, in Quay County, N.M. On Jan. 20, 2012, Province and Welch entered guilty pleas to numerous crimes arising out of the carjacking and murder of Mr. and Mrs. Haas, and agreed to testify during McCluskey’s capital trial.
On Oct. 7, 2013, the jury found McCluskey guilty on all counts of the indictment after an eight-week trial, and found McCluskey eligible for the death penalty on Nov. 5, 2013, following a three-week proceeding. The McCluskey capital trial concluded on Dec. 11, 2013, when the jury said it was unable to reach a unanimous verdict on the death penalty, thus requiring that McCluskey be sentenced to life in prison. McCluskey’s sentencing hearing is scheduled for tomorrow.
The evidence presented during the capital trial established that, on July 30, 2010, McCluskey and Province escaped from an Arizona state prison with Welch’s aid. On Aug. 2, 2010, McCluskey, Province and Welch carjacked Mr. and Mrs. Haas and their pickup truck and camping trailer at a rest stop off Interstate 40 in Quay County. McCluskey shot and killed Mr. and Mrs. Haas in the trailer in a remote location east of Tucumcari, N.M. The three confederates then drove the Haases’ truck and trailer to a remote area in Guadalupe County, N.M., where they unhitched, burned and abandoned the trailer with the Haases’ remains still inside. On Aug. 4, 2010, the New Mexico State Police discovered the burned remains of Mr. and Mrs. Haas in the trailer. Province was arrested in Wyoming on Aug. 9, 2010, and McCluskey and Welch were arrested in Arizona on Aug. 19, 2010, following a nationwide, multi-agency manhunt.The case was investigated by Albuquerque and Phoenix Divisions of the FBI and the New Mexico State Police and was prosecuted by Assistant U.S. Attorney Linda Mott and former Assistant U.S. Attorney Gregory J. Fouratt of the District of New Mexico, and Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Case Section, with assistance from Kristopher N. Houghton, a contract attorney employed by the U.S. Attorney’s Office.
Massachusetts Man Charged with <br /> Computer Hacking and Credit Card TheftRead the Press Release
A Massachusetts man was charged today with allegedly hacking into computer networks around the country – including networks belonging to law enforcement agencies, a local police department and a local college – to obtain highly sensitive law enforcement data and alter academic records. He also obtained stolen credit, debit and payment card numbers.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Carmen M. Ortiz of the District of Massachusetts, Special Agent in Charge Vincent Lisi of the FBI’s Boston Division and Colonel Timothy P. Alben of the Massachusetts State Police made the announcement.
Cameron Lacroix, 25, of New Bedford, Massachusetts, was charged by a criminal information with two counts of computer intrusion and one count of access device fraud.
According to allegations in the information, b etween May 2011 and May 2013, Lacroix allegedly obtained and possessed payment card data for more than 14,000 unique account holders. For some of these account holders, Lacroix also obtained other personally identifiable information, including the account holders’ full names, addresses, dates of births, social security account numbers, email addresses, bank account and routing numbers, as well as listings of merchandise the account holders had ordered.
In September 2012, Lacroix allegedly hacked into a computer server operated by a local Massachusetts police department and accessed an e-mail account belonging to the chief of police. From August 2012 through November 2012, Lacroix is accused of repeatedly hacking into law enforcement computer servers containing sensitive information including police reports, intelligence reports, arrest warrants, and sex offender information. Lacroix is also accused of using stolen credentials to access and change information in the servers of Bristol Community College on multiple occasions between September 2012 and December 2013.
The case was investigated by the FBI Boston Division Cyber Task Force. The case is being prosecuted by Senior Trial Attorney Mona Sedky from the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Bookbinder of the District of Massachusetts. The Department of Justice and the U.S. Attorney’s Office would like to thank Bristol Community College for its cooperation during this investigation.Man Who Viewed Child Pornography in Fresno Library Sentenced to 8 Years in PrisonRead the Press Release
FRESNO, Calif. —Victor Duane Smith, 59, of Fresno, was sentenced today to eight years in prison by Judge Anthony W. Ishii, to be followed by 15 years of supervised release, for receiving child pornography, United States Attorney Benjamin B. Wagner announced. Smith was also ordered to pay $5,000 to a child shown in five images he received.
According to court documents, in July 2013, law enforcement began tracking an individual who was using the Fresno County Public Library’s public wireless system to view child pornography through a file-sharing program. Investigators were able to watch Smith in the library while he used the program. Smith later confessed to the offense.
“The sentence is a stern reminder about the consequences facing those who use the Internet to sexually exploit innocent children,” said Mike Prado, resident agent in charge of Homeland Security Investigations (HSI) Fresno. “The fact this defendant was accessing child pornography in a public place where young people and their families congregate makes his actions even more disturbing. HSI will continue to work with its law enforcement partners here in the Fresno area and across the country to target child sexual predators who mistakenly believe they can act with impunity in cyberspace.”
This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Central California Internet Crimes Against Children Task Force, and the Fresno County Sheriff’s Office. Assistant United States Attorney Michael G. Tierney is prosecuting the case.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Man Charged with Computer Hacking and Credit Card TheftRead the Press Release
BOSTON – A New Bedford man was charged today with hacking into computer networks around the country – including networks belonging to law enforcement agencies, a local police department and a local college – and obtaining highly sensitive law enforcement data and altering academic records. He also obtained stolen credit, debit and payment card numbers.
Cameron Lacroix, 25, was charged with two counts of computer intrusion and one count of access device fraud. Lacroix has agreed to plead guilty. If the plea agreement is accepted by the court, Lacroix will be sentenced to four years in prison to be followed by three years of supervised release.
It is alleged that, between September 2012 and November 2013, Lacroix who was enrolled as a student at Bristol Community College (BCC), repeatedly hacked into BCC’s computer servers and used stolen log-in credentials belonging to three instructors, to log into the web-based grade recording system, where he changed course grades for himself and two other BCC students.
In addition, in September 2012, Lacroix allegedly hacked into a computer server operated by a local Massachusetts police department and accessed an e-mail account belonging to the chief of police. From August 2012 through November 2013, Lacroix is accused of repeatedly hacking into law enforcement computer servers containing sensitive information including police reports, intelligence reports, arrest warrants, and sex offender information.It is further alleged that between May 2011 and May 2013, Lacroix obtained and possessed payment card data for more than 14,000 unique account holders. For some of these account holders, Lacroix also obtained other personally identifiable information, such as the account holders’ full names, addresses, dates of births, social security account numbers, email addresses, bank account and routing numbers, as well as listings of merchandise the account holders had ordered.
United States Attorney Carmen M. Ortiz; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Vincent Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police made the announcement.
The case was investigated by the FBI Boston Division Cyber Task Force. The U.S. Attorney’s Office would also like to acknowledge the cooperation and assistance of Bristol Community College.
The case is being prosecuted by Assistant U.S. Attorney Adam Bookbinder, Chief of Ortiz’s Cyber Crime’s Unit and Senior Trial Attorney Mona Sedky from the Criminal Division’s Computer Crime and Intellectual Property Section.
Linn County Men Plead Guilty to Federal Firearms ViolationsRead the Press Release
KANSAS CITY, KAN. – Two Linn County men pleaded guilty Monday to federal firearms violations, U.S. Attorney Barry Grissom said.
Barry Walker, 70, Mound City, Kan., pleaded guilty to one count of allowing a convicted felon to possess firearms and ammunition. Jeffrey Nicholas, 47, Pleasanton, Kan., pleaded guilty to one count of possessing firearms and ammunition after a felony conviction.
In their pleas, they admitted that Nicholas, who had been convicted of a felony drug charge in Clark County, Nevada, worked selling firearms at Big Bear’s Gifts & Pawn Shop in Pleasanton, which was owned by Walker. Walker is the former Linn County Sheriff.
The Bureau of Alcohol, Tobacco, Firearms and Explosives first became aware Walker was allowing Nicholas to handle firearms during a compliance inspection at Big Bear’s Gifts & Pawn Shop on Nov. 10, 2011. Walker was counseled about the violation and agreed to prevent Nicholas from having any further access to firearms.
During another compliance inspection at Big Bear’s in November 2012, Walker told investigators that Nicholas had not handled any firearms transactions and that Walker conducted all transactions related to firearms. Investigators obtained evidence, however, that Nicholas had conducted transactions involving firearms. They learned that Nicholas would handle firearms transactions and then leave the forms for Walker to sign.
At various times from May 11, 2013, to Aug. 14, 2013, undercover ATF officers purchased firearms from Nicholas at Big Bear’s.
Sentencing will be scheduled at a later date. The defendants face a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Grissom commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Assistant U.S. Attorney Sheri McCracken for their work on the case.
Las Vegas Man Sentenced to 180 Months for Transportation of A Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
TUCSON, Ariz. – On June 2, 2014, Keith Deshawn Anderson, 39, of Las Vegas, Nev. was sentenced by Chief U.S. District Judge Raner C. Collins to 180 months imprisonment followed by five years of supervised release after having been found guilty by a federal jury on Nov. 12, 2013, of four counts of transportation of a minor with intent to engage in criminal sexual activity
The evidence at trial showed that the defendant transported a female minor from Arizona to Nevada multiple times for several months during 2011 and 2012 with the intent that the minor engage in criminal sexual activity with the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Sierra Vista Police Department. The prosecution was handled by Nicole Savel and Karen Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-12-0914-TUC-RCC (CRP)
RELEASE NUMBER: 2014-031_AndersonFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Katy Sisters Arrested in Scheme to Defraud RetailerRead the Press Release
HOUSTON – Sandra Johnson, 47, and her sister, Natalie Jeng, 41, both of Katy, have been charged along with two others in a scheme to defraud home décor retailer Garden Ridge Pottery of more than $2 million, announced United States Attorney Kenneth Magidson.
Johnson surrendered to federal authorities this morning and is expected to appear before U.S. Magistrate Judge Frances Stacy at 2:00 p.m., along with Darlene Drummer, 42, of Fresno, who was arrested Thursday, May 29. Jeng surrendered Friday, May 30, and appeared before U.S. Magistrate Judge Nancy Johnson who ordered her release upon posting bond. A fourth defendant, Niesha Hall, 35, of Houston, is also charged but not as yet in custody. A warrant remains outstanding for her arrest.
According to the allegations, Johnson was employed as a claims manager by Garden Ridge and was responsible for reviewing and approving payment for injury claims filed against the retailer by its customers - commonly referred to as “slip and fall” claims. Jeng was allegedly employed as a claims adjuster at Hammerman & Gainer Inc., a third-party administrator hired by Garden Ridge to administer and investigate claims.
According to court documents, Johnson, Jeng and others allegedly conspired to submit false injury claims for which Johnson and Jeng would authorize payment. The fraudulent settlement proceeds would then be split amongst the alleged injury victim, Johnson, Jeng as well as other members of the conspiracy, according to the charges. In all, 26 allegedly false claims were filed against Garden Ridge which resulted in the issuance of $2,063,436 in settlement proceeds. The majority of the settlement payments were made via automated clearing house (ACH) deposits, an electronic payment method which generally involves the use of interstate wire communication facilities, according to the complaints.
Drummer and Hall, in addition to allegedly filing false claims against Garden Ridge in their own names, are also alleged to have recruited other complicit claimants into the scheme. According to court documents, when the claimants received their settlements, Drummer and Hall allegedly assisted in laundering the proceeds by directing the claimants to make kickbacks in the form of cash or cashier’s checks to other members of the conspiracy.
Johnson, Jeng and Drummer are also alleged to have traveled together on Disney Cruise Lines vacations during the time the fraud was being perpetrated.
Johnson was charged with wire fraud and money laundering in a criminal complaint filed April 14, 2014. Jeng, Drummer and Hall were each charged with conspiracy to launder funds in a criminal complaint filed May 23, 2014. If convicted of any of the charges, each woman faces up to 20 years in federal prison.
The investigation leading to the charges was conducted by Internal Revenue Service – Criminal Investigation and the U.S. Postal Inspection Service with the assistance of the Houston Police Department. Assistant United States Attorney Jay Hileman is prosecuting.
KC Man Pleads Guilty to Phone Call Hoax with False Threat to Contaminate Water SupplyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to making a hoax telephone call with a false threat to contaminate the public water supplies of Kansas City, Mo., St. Louis, Mo., Wichita, Kan., and Topeka, Kan.
Manuel Garcia, 70, of Kansas City, pleaded guilty before U.S. District Judge Dean Whipple to the charge contained in a Nov. 15, 2013, federal indictment.
By pleading guilty today, Garcia admitted that he made three threatening telephone calls in October 2013 in which he claimed there was a threat to contaminate the public water supply of Kansas City, St. Louis, Wichita and Topeka. Garcia admitted that he knew the threats were false when he made the calls, and that the threats were conveyed in a way that it was reasonable to believe the information.
Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline on Oct. 15, 2013. Garcia claimed that the water supplies of Kansas City, St. Louis, Wichita, and Topeka, Kansas would be contaminated in the next 10-15 days with an unknown substance contained in four 55-gallon tanks. The 9-1-1 operator asked Garcia to identify himself and Garcia hung up. On the same day, Garcia called the Alcohol, Tobacco and Firearms Joint Support Operations Center in Washington, D.C., with the same threat. Garcia called the Kansas City, Mo., Police Department 9-1-1 Emergency Tips Hotline again on Oct. 22, 2013.
An FBI agent recognized Garcia’s voice from a previous case in which Garcia pleaded guilty to making threats by telephone and placing a hoax explosive device outside the federal courthouse. Garcia was sentenced to 18 months in federal prison in that prior case. Garcia’s residence at a transition house was close to the exact location the cellular tower system identified as the vicinity from which one of the calls originated.
Under federal statutes, Garcia is subject to a sentence of up to five years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brian Casey. It was investigated by the FBI.
Justice Department to Monitor Elections <br /> in California and New MexicoRead the Press Release
The Justice Department announced today that it will monitor elections on June 3, 2014, in Alameda and Napa Counties, California, and Cibola County, N.M., to ensure compliance with the Voting Rights Act and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
In Alameda County, the department will assign federal observers from the U.S. Office of Personnel Management (OPM) to monitor polling place activities based on a court order. The observers will watch and record activities during voting hours at polling locations in this jurisdiction, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, department personnel will monitor polling place activities in Napa and Cibola Counties. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the department deploys federal observers from OPM and departmental staff to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Civil Rights Division at 1-800-253-3931.
Visit this website for more information about the Voting Rights Act and other federal voting laws.Joe Usher Pleads Guilty to Federal Tax OffensesRead the Press Release
Former Owner of Knoxville Employee Leasing Company Faces Potential Prison Term and Obligation to Pay Restitution
KNOXVILLE, Tenn. – Zebbie Joe Usher, III, 46, of Knoxville, Tenn., pleaded guilty on June 2, 2014, in U.S. District Court for the Eastern District of Tennessee at Knoxville, to a two-count information charging him with tax evasion and conspiracy to commit tax evasion. The Honorable Pamela L. Reeves, U.S. District Judge, scheduled a status conference for Sept. 15, 2014, at which time a date for sentencing will be scheduled.
Usher faces a possible prison term of up to 10 years, along with up to $500,000 in fines and the requirement to pay more than $29 million in restitution to the Internal Revenue Service (IRS).
Usher was previously the chief executive officer of Service Provider Group and was involved in the management of a number of companies, known as professional employer organizations (PEOs), which were engaged in the employee leasing and payroll processing business. According to a plea agreement on file with the U.S. District Court in Knoxville, the PEOs collected federal payroll taxes from employees and were required to turn over those funds to the IRS in a timely manner. However, instead of doing so, Usher and his unnamed co-conspirators used the funds for other company expenses and personal expenditures. In an attempt to avoid discovery of their nonpayment of payroll taxes, Usher and his co-conspirators submitted false documents to the IRS.
Usher’s guilty plea is the result of an ongoing investigation by the IRS and Federal Bureau of Investigation. Assistant United States Attorney Frank M. Dale, Jr. represents the United States.
Joe Usher Pleads Guilty to Federal Tax OffensesRead the Press Release
Former Owner of Knoxville Employee Leasing Company Faces Potential Prison Term and Obligation to Pay Restitution
KNOXVILLE, Tenn. – Zebbie Joe Usher, III, 46, of Knoxville, Tenn., pleaded guilty on June 2, 2014, in U.S. District Court for the Eastern District of Tennessee at Knoxville, to a two-count information charging him with tax evasion and conspiracy to commit tax evasion. The Honorable Pamela L. Reeves, U.S. District Judge, scheduled a status conference for Sept. 15, 2014, at which time a date for sentencing will be scheduled.
Usher faces a possible prison term of up to 10 years, along with up to $500,000 in fines and the requirement to pay more than $29 million in restitution to the Internal Revenue Service (IRS).
Usher was previously the chief executive officer of Service Provider Group and was involved in the management of a number of companies, known as professional employer organizations (PEOs), which were engaged in the employee leasing and payroll processing business. According to a plea agreement on file with the U.S. District Court in Knoxville, the PEOs collected federal payroll taxes from employees and were required to turn over those funds to the IRS in a timely manner. However, instead of doing so, Usher and his unnamed co-conspirators used the funds for other company expenses and personal expenditures. In an attempt to avoid discovery of their nonpayment of payroll taxes, Usher and his co-conspirators submitted false documents to the IRS.
Usher’s guilty plea is the result of an ongoing investigation by the IRS and Federal Bureau of Investigation. Assistant United States Attorney Frank M. Dale, Jr. represents the United States.
Illinois Man Sentenced for Assaulting Federal AgentsRead the Press Release
St. Louis, MO – EXCEDRIN COLLINS was sentenced to 84 months in prison for forcibly assaulting agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives with an automobile.
According to court documents, on May 20, 2013, in the City of St. Louis, Collins forcibly assaulted agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), while the agents were engaged in the performance of their official duties, and in the commission of the assault, Collins used a deadly or dangerous weapon, that is, an automobile.
In the days leading up to May 20, 2013, an ATF undercover agent arranged to meet with Collins’ co-defendants Lonnell Wilson and Retonio Dickerson to purchase a firearm for $500.On May 20, 2013, Collins drove Wilson and Dickerson to meet the undercover agent in a white Ford Expedition, a full-sized sport utility vehicle. Collins, Wilson and Dickerson met the undercover agent at Sherman Park, in North St. Louis City.
With Collins and Dickerson present, Wilson showed a Browning 9mm semi-automatic pistol to the undercover agent. The undercover agent, Wilson and Dickerson discussed the purchase of the Browning 9mm pistol. The undercover agent handed Wilson $500 in recorded ATF buy money. Wilson handed the money to Dickerson, who counted the money and returned it to Wilson. Dickerson then grabbed the Browning 9mm pistol away from the undercover agent. Collins, Wilson and Dickerson fled to the Ford Expedition. The entire transaction was audio and video recorded.Wilson pointed and discharged the Browning 9mm pistol at the undercover agent, who was engaged in the performance of his official duties. Collins, Wilson and Dickerson then fled in the Ford Expedition, with Collins driving.
While exiting Sherman Park, Collins knowingly and intentionally rammed the Ford Expedition into an ATF vehicle, in which three ATF agents were responding to the scene of the assault. The ATF agents were engaged in the performance of their official duties. The ATF vehicle sustained significant damage.
Collins fled from pursuing ATF agents at speeds exceeding 100 miles per hour on busy residential streets, which recklessly created a substantial risk of death or serious bodily injury to other persons.
Collins, Madison, IL, pleaded guilty on January 9, 2014, to one felony count of forcibly assaulting an agent with a deadly or dangerous weapon. He appeared today for sentencing before United States District Judge Catherine D. Perry.
This case was investigated by ATF. Assistant United States Attorney Cristian M. Stevens is handling the case for the U.S. Attorney’s Office.
Gulfport Man Sentenced to Prison for Attempting to Evade TaxesRead the Press Release
Gulfport, Miss – Jeffrey Jerome Isabell, 51, of Gulfport, was sentenced to seven months in federal prison and six months of home confinement with electronic monitoring for attempting to evade income taxes, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Gabriel Grchan with IRS - Criminal Investigation. Isabell was also ordered to pay $76,953.00 in restitution and a $3,000 fine. He will be placed on supervised release for two years after serving his sentence.
Isabell pled guilty on March 19, 2014 to attempting to evade taxes by preparing and filing a fraudulent tax return for the 2010 calendar year.
“Every citizen is responsible for filing correct and accurate tax returns," said Gabriel L. Grchan, Special Agent in Charge, IRS-Criminal Investigation. "As a paid return preparer, Jeffery Isabell certainly knew he was breaking the law. For his actions he was sentenced to seven months in prison and six months home confinement. IRS-CI will vigorously investigate those individuals who knowingly and willfully evade their tax obligation."
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Fresno Woman Pleads Guilty to Stealing More Than $113,000 in Social Security BenefitsRead the Press Release
FRESNO, Calif. — Ernedina Madrigal, 78, of Fresno, aka Mary Louise Madrigal, pleaded guilty today to stealing social security benefits, United States Attorney Benjamin B. Wagner announced.
According to court documents, in September 1996, Madrigal applied for and began receiving social security benefits using a fraudulently-obtained social security number in her sister’s name. At that time, Madrigal already had applied for and was receiving social security benefits under her own name and legitimate social security number. For more than 16 years, Madrigal to unlawfully received social security benefits under the illicit social security number while also receiving benefits under her legitimate social security number. Madrigal also failed to report her receipt of earned income to the Social Security Administration. In all, Madrigal received approximately $113,000 in unlawful benefits.
This case was the product of an investigation by the U.S. Social Security Administration, Office of Inspector General. Assistant U.S. Attorneys Christopher Baker and Patrick Delahunty are prosecuting the case.
Madrigal is scheduled to be sentenced by Senior U.S. District Judge Anthony W. Ishii on August 25, 2014. Madrigal faces a maximum statutory penalty of ten years in prison, a $250,000 fine, or both. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Utah Certified Public Accountant Convicted of Filing False Claims for Tax Refunds <br /> Totaling More Than $8 Million and Presenting a $300 Million Fictitious Financial InstrumentRead the Press Release
Dick Reid Jenkins, of Heber City, Utah, was convicted today, in U.S. District Court for the District of Utah, of eighteen counts of filing false claims for income tax refunds and one count of presenting a fictitious financial instrument, the Justice Department and Internal Revenue Service (IRS) announced. Jenkins was charged by a superseding indictment on June 26, 2013. He is scheduled to be sentenced before U.S. District Judge Clark Waddoups on Sept. 9, 2014.According to court documents and evidence presented at trial, Jenkins filed a false 2007 individual income tax return for himself in September 2008 which claimed an income tax refund of $402,920. In October 2008, Jenkins filed a false amended 2004 individual income tax return which claimed an income tax refund of $434,261. Both false claims were based on the use of a false IRS Form 1099-OID, Original Issue Discount. The IRS listed this scheme as one of its “ Dirty Dozen ” worst tax scams each year from 2009 through 2014.
According to court documents and evidence presented at trial, in addition to his own false returns, Jenkins caused sixteen false federal individual income tax returns to be filed on behalf of other individuals from September 2008 through February 2009. These false tax returns also used false IRS Forms 1099-OID and claimed federal income tax refunds totaling $8,407,623. On June 30, 2008, Jenkins passed and presented a false and fictitious financial instrument to the U.S. Department of the Treasury in the amount of $300,000,000. Jenkins was licensed by the state of Utah as a Certified Public Accountant at the time his criminal conduct occurred.
Jenkins faces a statutory maximum penalty of 25 years in prison and a fine of up to $250,000 for passing and presenting a fictitious obligation to the United States. Jenkins also faces a maximum penalty of five years in prison and a fine of up to $250,000 or twice the gross gain or loss caused by the defendant for each count of presenting false, fictitious, and fraudulent claims to the United States.
Kathryn Keneally, Assistant Attorney General of the Department of Justice Tax Division, commended the special agents of IRS - Criminal Investigation who investigated the case, and Trial Attorneys Stuart Wexler and Michael Romano of the Tax Division, who prosecuted the case.
Former Riverside County Deputy Public Defender Gets Year in Prison for Collecting Her Dead Grandmother’s Social Security BenefitsRead the Press Release
RIVERSIDE, California – An Upland attorney was sentenced today to one year and one day in federal prison for stealing $129,795 from the Social Security Administration (SSA) after her grandmother died in 2000.
Audrey Owens, 61, who until she retired in September was a deputy public defender for Riverside County, was sentenced today by United States District Judge Virginia A. Phillips.
Owens pleaded guilty on March 3 to two counts of theft of government property, admitting that she bilked the government for 12 years.
According to court documents, from June 2000 through August 2012, Owens fraudulently obtained social security benefits intended for her grandmother, who died in May 2000. After her grandmother’s death, Owens changed the address of a joint account she shared with her grandmother and continued to receive the dead woman’s social security payments.
Owens “devised and executed a plan to illicitly obtain significant amounts of SSA benefits intended for her deceased grandmother,” prosecutors wrote in a sentencing memo filed with the court. “Indeed, within just one week of her grandmother’s death, [Owens] sprang her plan into action by immediately removing her father’s name off of the [grandmother’s] Kansas City account and changing the address of record to her own address in Upland. This allowed her to continue to receive SSA benefits, undetected, for over 12 years, totaling over $129,000. She was only stopped when SSA began to suspect fraud – otherwise, the theft would have likely continued indefinitely and resulted in even greater losses.”
The investigation in this case was conducted by the Social Security Administration, Office of the Inspector General, Office of Investigations.
Release No. 14-068
Former CEO and CFO of Arthrocare Corporation Convicted for Orchestrating $400 Million Securities Fraud SchemeRead the Press Release
A federal jury today convicted the former chief executive officer and the former chief financial officer of ArthroCare Corporation, a publicly traded medical device company based in Austin, Texas, for orchestrating a fraud scheme that resulted in shareholder losses of over $400 million.
Principal Deputy Assistant Attorney General Marshall L. Miller and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office made the announcement.
“These corporate executives cooked the books to prop up their stock, and when the truth came out investors lost more than $400 million,” said Principal Deputy Assistant Attorney General Miller. “Today’s convictions are the first step in holding them accountable for undermining our financial markets for their own personal gain.”
“This case demonstrates the FBI’s commitment to unraveling elaborate and complex fraud schemes leaving no financial stone unturned,” said FBI SAC Combs. “Those who abuse their position of trust to illegally enrich themselves, at the expense of shareholders and members of the investing public, will be held accountable for their actions.”
After a four-week trial, a jury in the Western District of Texas found the former CEO, Michael Baker, 55, guilty of conspiracy to commit wire and securities fraud, wire fraud, securities fraud and false statements. Michael Gluk, 56, the former CFO, was found guilty of conspiracy to commit wire and securities fraud, wire fraud and securities fraud. Baker and Gluk were charged in a superseding indictment returned on April 1, 2014.
Evidence at trial demonstrated that Baker and Gluk, along with their co-conspirators, masterminded and executed a scheme to artificially inflate sales and revenue through a series of end-of-quarter transactions involving several of ArthroCare’s distributors beginning in 2005 and continuing until 2009. Co-conspirators John Raffle and David Applegate, both former senior vice presidents of ArthroCare, pleaded guilty to multiple felonies in 2013 in connection with their participation in the scheme.
Baker, Gluk and other ArthroCare employees determined the type and amount of product to be shipped to distributors based on ArthroCare’s need to meet Wall Street analyst forecasts, rather than distributors’ actual orders. Baker, Gluk and others then caused ArthroCare to “park” millions of dollars’ worth of ArthroCare’s medical devices at its distributors at the end of each relevant quarter. ArthroCare then reported these shipments as sales in its quarterly and annual filings at the time of the shipment, enabling the company to meet or exceed internal and external earnings forecasts.
Evidence at trial further showed that ArthroCare’s distributors agreed to accept shipment of millions of dollars of products in exchange for special conditions, including substantial, upfront cash commissions, extended payment terms and the ability to return products, allowing ArthroCare to falsely inflate its revenue by tens of millions of dollars.
Baker, Gluk and others used DiscoCare, a privately owned Delaware corporation, as one of the distributors to cover shortfalls in ArthroCare’s revenue. Evidence at trial showed that, at Baker and Gluk’s direction, ArthroCare shipped product to DiscoCare that far exceeded DiscoCare’s needs.
Baker, Gluk and others lied to investors and analysts about ArthroCare's relationships with its distributors, including DiscoCare. Baker and Gluk caused ArthroCare to acquire DiscoCare specifically to conceal from the investing public the nature and financial significance of ArthroCare’s relationship with DiscoCare.
Evidence at trial also established that Baker lied when he was deposed by the U.S. Securities and Exchange Commission in November 2009 about the DiscoCare relationship.
Between December 2005 and February 2009, ArthroCare’s shareholders held more than 25 million shares of ArthroCare stock. On July 21, 2008, after ArthroCare announced publicly that it would be restating its previously reported financial results from the third quarter 2006 through the first quarter 2008 to reflect the results of an internal investigation, the price of ArthroCare shares dropped from $40.03 to $23.21 per share. The drop in ArthroCare’s share price caused an immediate loss in shareholder value of more than $400 million.
Following today’s verdict, U.S. District Judge Sam Sparks remanded Baker into custody. A sentencing date for Baker and Gluk has not yet been scheduled.
This case was investigated by the FBI’s San Antonio Field Office. The case is being prosecuted by Deputy Chief Benjamin D. Singer and Trial Attorneys Henry P. Van Dyck and William S.W. Chang of the Criminal Division’s Fraud Section. The Department appreciates the substantial assistance of the U.S. Securities and Exchange Commission.Final Defendant in Arizona-Florida Drug Conspiracy SentencedRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, announce that Jerrick David Bartee, 31, of West Palm Beach, was sentenced by U.S. District Judge Kenneth A. Marra to 168 months in prison, followed by five years of supervised release, for his role in conspiring to distribute over five kilograms of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 846. Jerrick David Bartee was the last defendant in this 30-defendant case to be sentenced.
In February 2013, following a two year investigation, agents arrested 30 defendants who were involved in this drug conspiracy. The evidence presented in court showed that this well organized conspiracy was responsible for transporting in excess of 12 kilograms of cocaine from Arizona to Florida via the U.S. Mail and other shipping companies. Once the cocaine arrived in South Florida, certain members of the organization converted the cocaine into crack cocaine and distributed the same in the streets of Lake Worth, Florida.
Twenty-nine of the 30 defendants entered pleas of guilty and were sentenced. One defendant, Frank Davis Moore, Jr., proceeded to trial and was convicted as charged. Jerrick David Bartee was sentenced as noted above. The remaining 29 defendants received the following sentences:
George Evans Bivins, Jr., 31, of West Palm Beach, was sentenced to 360 months in prison;
Antonio Markeith Beverly, 30, of West Palm Beach, was sentenced to 228 months in prison;
Daniel Emmanuel Torrez, 33, of Tucson, Arizona, was sentenced to 150 months in prison;
Lavaris Reshard Bivins, 23, of West Palm Beach, was sentenced to 188 months in prison;
William Alvarenga, 20, of Boynton Beach, was sentenced to 70 months in prison;
Jessica Marie Arvizu, 32, of Tucson, Arizona, was sentenced to 48 months in prison;
Michael Maxwell Barkley, 39, of Lake Worth, was sentenced to 240 months in prison;
Kirk Douglas Bivins, 39, of Riviera Beach, was sentenced to 120 months in prison;
Demetri Pernell Cobb, 25, of Lake Worth, was sentenced to 70 months in prison;
Darren Duane Donnally, 40, of Palm Springs, was sentenced to 262 months in prison;
Quatavious Carnell George, 27, of Riviera Beach, was sentenced to 120 months in prison;
Wellington Timothy Glinton, 21, of Lake Worth, was sentenced to 120 months in prison;
Javaris Reshad Bartelmy, 25, of Boynton Beach, was sentenced to 60 months in prison;
Ernest Andrew Holiday, 31, of Riviera Beach, was sentenced to 120 months in prison;
Jean Innocent, 22, of Lake Worth, was sentenced to 135 months in prison;
Demetrice Lemane Jones, 38, of Riviera Beach, was sentenced to 121 months in prison;
Dominic Perry Lamare, 36, of Port St. Lucie, was sentenced to 120 months in prison;
Patrick Jarrod Lowe, 26, of Lantana, was sentenced to 164 months in prison;
Richard John Mercy, 32, of North Palm Beach, was sentenced to 120 months in prison;
Frank Davis Moore, Jr., 34, of Royal Palm Beach, was sentenced to 180 months in prison;
Evens Pierre-Lewis, 28, of Palm Springs, was sentenced to 240 months in prison;
Theresa Lashai Razz, 29, of West Palm Beach, was sentenced to 48 months in prison;
Lori Beth Mae Saccoman, 51, of West Palm Beach, was sentenced to 37 months in prison;
Jeannot Saintelus, 24, of Lake Worth, was sentenced to 60 months in prison;
Calvin Leon Sirmans, 30, of Lake Worth, was sentenced to 120 months in prison;
Jamie Toby, 25, of Lake Worth, was sentenced to 200 months in prison;
Monica Deloris Toby, 48, of Lantana, was sentenced to 120 months in prison;
Eric Lanard Williams, 30, of Lantana, was sentenced to 120 months in prison; and
David Lendell White, 27, of Lake Worth, was sentenced to 120 months in prison.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the FBI and the Palm Beach County Sheriff?s Office. This case was prosecuted by Assistant United States Attorneys Rinku Tribuiani and Robert Waters.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fayetteville Man Videotapes Sex with Step-daughterRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today IKE SIMMONS, 38, of Fayetteville, North Carolina, pled guilty before Senior United States District Judge W. Earl Britt to manufacturing child pornography, in violation of Title 18, United States Code, Sections 2252(a) and (d). A Federal Grand Jury returned a Criminal Indictment returned on January 21, 2014.
According to the investigation, in July, 2013, the mother of the victim contacted law enforcement reporting that her ex-husband had been molesting her 16-year-old daughter since 2009. SIMMONS was arrested and three computer hard drives, along with his Iphone was seized. Computer forensics later performed on the hard drive revealed that SIMMONS had videotaped the molestation using his cellphone and then transferred the videos to the hard drives.
SIMMONS is a previously convicted sex offender stemming from a 2003 conviction.
At sentencing, set for September 8, 2014, SIMMONS faces a minimum of 15 years imprisonment and up to a maximum of 30 years imprisonment. If it is determined that he has had prior convictions related to sexual abuse, abusive sexual conduct with a minor, or an offense related to child pornography or sex trafficking of children, he faces a minimum of 35 years and a maximum term of imprisonment up to life.
The criminal investigation of this case was conducted by the Cary Police Department, the Apex Police Department, and the Fayetteville Police Department. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Fairfield Man Sentenced to 26 Years in Prison on Drug and Gun ChargesRead the Press Release
BIRMINGHAM -- U.S. District Judge L. Scott Coogler last week sentenced a Fairfield man to 26 years in prison on drug distribution and gun charges, announced U.S. Attorney Joyce White Vance and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Jeffrey L. Fulton.DAMIEN LARON McDANIEL, 33, pleaded guilty in February to one count of possession with intent to distribute cocaine, one count of using a firearm during a drug trafficking offense, two counts of being a convicted felon in possession of a firearm, and one count of possession with intent to distribute marijuana. Judge Coogler sentenced McDaniel to the 26 years in prison on those charges, and sentenced him to an additional 13 months in prison on a supervised release violation in a separate case.
The charges stemmed from a September 2012 controlled buy-bust operation in Fairfield conducted by the Alabama Alcoholic Beverage Control Board Drug Unit, according to court documents. McDaniel responded to a call from someone asking to buy heroin and showed up at the designated meeting place on Valley Road with packets of cocaine in his car and a Springfield 9mm pistol concealed in his waistband, according to his plea agreement.
At the time of that arrest, McDaniel already had been convicted of three felony offenses, according to the plea agreement.
In March 2013, a federal grand jury indicted McDaniel on charges arising from the September 2012 incident. When U.S. Marshals and other members of the Gulf Coast Regional Task Force arrested McDaniel in September 2013 on a warrant issued after the indictment, they observed numerous weapons and a large quantity of marijuana in plain view in the house where they found him, according to his plea agreement. Jefferson County Sheriff's Deputies followed up with a narcotics and weapons search warrant for the residence and recovered eight firearms and about a pound of marijuana.
The ATF, ABC, U.S. Marshals Service and Jefferson County Sheriff's Department investigated the case, which Special Assistant U.S. Attorneys E. Wilson Hunter and Daniel M. Murdock prosecuted.
Deputy Attorney General, Federal Law Enforcement Officials to Hold News Conference on Cyber Fraud AnnouncementRead the Press Release
Deputy Attorney General James M. Cole, Assistant Attorney General Leslie R. Caldwell of the Criminal Division, U.S. Attorney for Western District of Pennsylvania David Hickton, FBI Executive Associate Director Robert Anderson and Deputy Under Secretary Dr. Phyllis Schneck of the Department of Homeland Security will hold a news conference TODAY, MONDAY, JUNE 2, 2014, at 12:00 p.m. EDT, to announce criminal charges and two global cyber fraud disruptions.WHO: DeputyAttorney General James M. Cole
Assistant Attorney General Leslie R. Caldwell of the Criminal Division
U.S. Attorney for Western District of Pennsylvania David Hickton
FBI Executive Associate Director Robert Anderson
Deputy Under Secretary Dr. Phyllis Schneck
WHAT: Press conference to announce cyber fraud charges and disruptions.
WHEN: TODAY, 12:00 p.m. EDT, JUNE 2, 2014
WHERE: Department of Justice
7th Floor Conference Room
950 Pennsylvania Ave., N.W.
Washington, D.C.
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Media must enter the department at the visitor’s entrance on Constitution Avenue between 9th and 10th Streets. Media may begin arriving at 11:00 a.m. EDT and cameras must be pre-set by 11:45 a.m. EDT. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007 or email [email protected] .
Criminal Immigration Charges Brought Against Two Illegal AliensRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced today that charges in two unrelated cases were brought against the following persons in Harrisburg on May 30, 2014.
Marcos Guillen-Guillen, age 32, a native and citizen of Honduras, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today. The information alleges that Guillen-Guillen, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Guillen-Guillen faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
Johnny Martinez-Palacios, age 32, a native and citizen of Honduras, in the United States illegally was charged in a one-count information filed with the Court in Harrisburg today.
The information alleges that Martinez-Palacios, an illegal alien, did enter the United States at any time or place other than as designated by immigration officers and was found in the United States in Cumberland County, Pennsylvania after eluding examination or inspection by immigration officers.
If convicted, Martinez-Palacios faces a maximum sentence of up to 6 months’ imprisonment and a $5,000 fine.
The investigations were conducted by the U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) and is being prosecuted by Special Assistant United States Attorney Brian G. McDonnell.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Convicted Drug Trafficker Pleads Guilty to Federal Drug, Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – A Providence resident previously convicted in state court on drug trafficking charges pleaded guilty in federal court today to federal drug trafficking and firearm charges and faces up to 70 years in federal prison, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Divisionof the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Jose A. Fuentes, 43, of Providence, pleaded guilty to three counts of distribution of heroin and one count of being a felon in possession of a firearm. He is scheduled to be sentenced on September 4, 2014.
Appearing before U.S. District Court Judge Mary M. Lisi, Fuentes admitted to the court that on March 5, 2012, and March 16, 2012, he sold a total of more than 14 grams of heroin to an undercover ATF agent. Additionally, Fuentes admitted to the court that on October 12, 2012, he traded with an undercover ATF agent .77 grams of heroin and $100 in cash for a semi-automatic handgun. Fuentes was arrested by ATF agents immediately after he took possession of the firearm.
According to information presented to the court, Fuentes was convicted in Rhode Island state court in August 2009 of delivery of heroin, and was on probation at the time of his arrest by ATF agents.
The case is being prosecuted by Assistant U.S. Paul F. Daly, Jr., with the assistance of Assistant U.S. Attorney William J. Ferland.
Distribution of heroin is punishable by a statutory penalty up to 20 years in federal prison and a fine of up to $1,000,000. Felon in possession of a firearm is punishable by a statutory penalty of 10 years imprisonment and a fine of $250,000.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Chelsea Contractor Sentenced to 2¾ Years for Filing False Income Tax ReturnsRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that
Marshall Swan, 56, of Chelsea, Maine, was sentenced today in U.S. District Court in Bangor by
Chief Judge John A. Woodcock, Jr. to 2¾ years in prison and 1 year of supervised release for federal tax fraud. He was also fined $40,000.According to the indictment and trial evidence, Marshall Swan and his wife, former
Chelsea selectman, Carole Swan, filed false federal income for tax years 2006 through 2010 in which they under-reported about $650,000 in gross receipts and sales for their business, Marshall
Swan Construction, thereby evading about $145,000 in income and self-employment taxes.In imposing sentence, Chief Judge Woodcock found that shortly after the federal indictment, the defendant paid two individuals $200 to slash truck tires and to shoot out the windows of two excavators owned by Frank Monroe who had been a central witness in the investigation. The defendant also told them to hit his brother for comments he made to a reporter following the indictment. The two individuals stole a generator and two chainsaws from the defendant’s brother. In imposing sentence, Chief Judge Woodcock noted that tax fraud crimes are serious crimes and that these crimes were a way of life for the defendant. He also noted that intimidating witnesses strikes at the heart of the judicial process and threatens the foundation of our judicial system.
The case was investigated by the Internal Revenue Service – Criminal Investigations
Division; the Federal Bureau of Investigation; the Department Homeland Security, Office of
Inspector General ("OIG"); the U.S. Department of Labor, OIG, Office of Labor Racketeering and Fraud Investigations; the U.S. Postal Service, OIG; and the Kennebec County Sheriff's
Office.Carbon County Man Sentenced to Prison for Federal Cocaine Trafficking ChargesRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a Carbon County man was sentenced today, in federal court in Scranton by Senior United States District Judge Edwin M. Kosik, to serve 30 months in prison on the charge of distributing cocaine.
According to United States Attorney Peter Smith, Joseph Revell, age 21, of Nesquehoning, Carbon County, previously pleaded guilty to distributing cocaine in the Carbon County area between January 2011 and December 2012.
In addition to the prison term, Senior Judge Kosik also ordered that Revell be supervised by a probation officer for three years following his release from prison.
Revell was indicted by a federal grand jury on October 30, 2012, after an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Nesquehoning and Lansford Police Departments in Carbon County.
Previously, Alexander “Butch” Sommers, age 48, of Summit Hill, Carbon County, was sentenced to 37 months in federal prison for participating in the same cocaine trafficking ring.
The case was prosecuted by Assistant United States Attorney Robert J. O’Hara.
CFO Accused of Embezzling over $500,000 from Non-Profit EmployerRead the Press Release
SAN FRANCISCO – On May 29, 2014, a federal grand jury in San Francisco indicted Robert Bradley Strahan, a/k/a Robin Bradley, a/k/a Kaola Bradley for wire fraud and mail fraud, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the Indictment, Strahan, 51, of San Francisco, allegedly embezzled in excess of $520,000 from the non-profit trade association he worked for in San Francisco. The Indictment also alleges that between December 2009 through April 2014, he carried out the scheme by, among other means, (1) writing, signing, endorsing, and cashing checks made payable to “Strahan” and “Cash” from the company’s bank accounts; and (b) using the company’s credit cards to make unauthorized purchases for his personal use. To perpetrate and to conceal his scheme to defraud, Strahan allegedly made false entries in the company’s accounting systems and sent falsified financial statements to the company’s board of directors.
Strahan was arrested in San Francisco on May 30, 2014, and made his initial appearance in federal court on the same day. Strahan is currently being held in custody pending a detention hearing scheduled for June 4, 2014, at 9:30 a.m. in a courtroom to be determined. Strahan will appear before the Honorable Thelton E. Henderson, United States District Court Judge, for arraignment on July 7, 2014, at 2:30 p.m.
The maximum statutory penalty for each count of wire fraud, in violation of 18 U.S.C § 1343, is 20 years imprisonment and a fine of $250,000. The maximum statutory penalty for each count of mail fraud, in violation of 18 U.S.C § 1341, is 20 years imprisonment and a fine of $250,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Hallie Hoffman is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Bridget Kilkenny. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service.
Please note, an indictment contains only allegations against a person and, as with all defendants, Robert Bradley Strahan must be presumed innocent unless and until proven guilty.
(Strahan indictment )
Buffalo Woman Pleads Guilty to Bank FraudRead the Press Release
BUFFALO, N.Y. - U.S. Attorney William J. Hochul, Jr. announced today that Nichole Dean, 27, of Buffalo, N.Y., pleaded guilty to bank fraud before U.S. Magistrate Judge Leslie G. Foschio. The charge carries a maximum penalty of 30 years in prison, a fine of $1,000,000 or both.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who is handling the case, stated that the defendant was part of a conspiracy to defraud local area banks by participating in a scheme sometimes referred to as “Check Kiting.” Dean would open bank accounts and deposit large checks to the accounts. The deposited checks were written on accounts that had insufficient funds or on accounts that had been closed. Before the banks could determine that the checks were not supported by any funds, the defendant withdrew smaller amounts from the accounts. Although Dean made away with $7,612.73, the amount of the intended loss was more than $36,000.
Co-conspirators Carlique Deberry, Sade Heath and Sayonara Heath have all been convicted of similar charges.
The plea is the culmination of an investigation by the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast.
Sentencing will take place at a later date before Chief U.S. District Judge William M. Skretny.Broward Resident Sentenced to 94 Months in Prison in Treasury Check Cashing and Stolen Identity SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Paula Reid, Special Agent in Charge, U.S. Secret Service, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce that Ronald Walker, 36, of Fort Lauderdale, was sentenced before U.S. District Judge James I. Cohn for his participation in a check cashing and stolen identity scheme. Walker was sentenced to 94 months in prison, to be followed by three years of supervised release. Ronald Walker was also ordered to pay restitution of $1,094,185.20 to the IRS.
Ronald Walker previously pled guilty in two cases. In one case, he pled guilty to one count of theft of public money, a United States income tax refund check, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). In the second case, he pled guilty to conspiracy to steal, receive, and retain money and things of value of the United States and to forge endorsements on and cash treasury checks, receipt and retention of things of value of the United States, and aggravated identity theft.
According to court documents, a confidential informant (CI) told federal agents that Walker routinely received stolen or fraudulently obtained U.S. Treasury checks and negotiated them at a check cashing store called American Quick Cash (AQC) located in Broward County, which was owned by Wilson and Kate Lau. The CI also stated that Walker forged the payees’ endorsements on the back of the checks and provided Wilson Lau with the payees’ social security numbers and copies of altered Florida driver’s licenses.
During an undercover operation, Walker was given three treasury tax refund checks that resulted from fraudulent tax returns being filed in the names and social security numbers of real people. Ronald Walker was also provided with driver’s license numbers, social security numbers, and dates of birth for all of the payees on the checks. Ronald Walker went to AQC, and then gave the CI and/or undercover agent their portion of the cashed checks. After clearing the banking system, the checks that were created for this investigation included endorsements on the back, but the payees were fictitious and could not have endorsed the checks.
From February 2010 through May 2011, the total amount of U.S. Treasury checks cashed by Walker at AQC is approximately $1,234,114. The number of victims involved is greater than 50, but fewer than 250.
In a separate investigation, Walker and co-defendants, Aaron Taylor, 30, Lauderhill, James Burch, 36, Coral Springs, and Regina James, 39, Ft. Lauderdale, sold $75,108.79 in fraudulently obtained tax refund checks and 609 people’s identifying information.
On July 20, 2012, Wilson Lau, 75, and his wife, Kate Yuee Lau, 54, formerly of Coral Springs, were sentenced before U.S. District Judge Robert Scola. Wilson Lau was sentenced to 84 months in prison, to be followed by three years of supervised release. Kate Yuee Lau was sentenced to 24 months in prison, to be followed by three years of supervised release.
On May 16, 2014, Taylor was sentenced to 54 months in prison and Burch was sentenced to 36 months in prison. Aaron Taylor and Burch assisted Walker to sell the fraudulent tax refund checks and identifying information. Sentencing for James is scheduled for June 6, 2014 at 4:00 p.m. before U.S. District Judge Kenneth A. Marra.
Mr. Ferrer commended the investigative efforts of IRS-CI, the Secret Service, and the FBI. The case is being prosecuted by Assistant U.S. Attorneys Alicia E. Shick and Marc Osborne.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Antioch Resident Pleads Guilty to Conspiring to File False ClaimsRead the Press Release
OAKLAND – Jessika Green pleaded guilty on May 30, 2014, to conspiring to file false claims, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the plea agreement, beginning in January 2011, Green assisted in filing several tax returns with the IRS that were false and fraudulent. Green admitted that the tax returns were false because the filings included fictitious Forms W-2 that inflated the purported filers’ wages. The filings included a tax return filed in Green’s name which falsely reported her earnings from a staffing agency. In other instances, Green admitted to filing the false tax returns without ever showing the fraudulent tax return to the purported filer. As part of her plea, Green admitted that she filed false tax returns asking for at least $154,823, all of which she was not entitled to receive, and agreed to pay restitution in the amount of $92,191, equaling the amount of returns sent to her.
Green was charged with Khyber Law who pleaded guilty to conspiring to file false claims on April 4, 2014.
Green, 33, of Antioch, was charged in a superseding indictment on Dec. 17, 2013, with conspiracy to file false claims, wire fraud, filing false claims and aggravated identity theft. Green, is scheduled to be sentenced before the Honorable Jon S. Tigar United States District Court Judge on October 10, 2014, in Oakland.
Law pleaded guilty to conspiracy to file false claims and agreed to pay restitution related to this offense. Law is scheduled to be sentenced for his role in this offense on Aug. 22, 2014, before Judge Tigar as well.
The maximum statutory penalty for each count of conspiracy to file false claim, in violation of 18 U.S.C § 286, is ten years in prison, and a fine of $250,000.
Assistant U.S. Attorney Thomas Newman is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Law indictment )
Anchorage Man Faces Federal Drug Trafficking ChargesRead the Press Release
Anchorage, Alaska – Acting U.S. Attorney Kevin R. Feldis announced today that a local man was arraigned in federal court in Anchorage on two counts of possession of controlled substances with intent to distribute.
Amos Lee Blakeney, 47, was charged in a two-count indictment.
According to the information presented to the court, Blakeney possessed both heroin and cocaine with the intent to distribute the substances to other individuals. The indictment also seeks forfeiture of over six thousand nine hundred dollars seized during the course of this investigation.
Special Assistant U. S. Attorney Erin W. Bradley, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, 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.
The Federal Bureau of Investigation Safe Streets Task Force and the Anchorage Police Department conducted the investigation leading to the indictment in this case. SAUSA Bradley is a prosecutor in the U.S. Attorney’s Office funded by the Municipality of Anchorage for the purpose of prosecuting gang-related and violent crime cases.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Accountant Sentenced to ImprisonmentRead the Press Release
HONOLULU – U.S. District Court Judge Leslie E. Kobayashi today sentenced Dennis Duban, a Los Angeles-based accountant and tax return preparer, to 24 months imprisonment for conspiracy to defraud the Internal Revenue Service (IRS) and assisting in the filing of a false federal income tax return before in Honolulu, Hawaii. She also ordered Duban to pay a fine of $30,000 and perform 600 hours of community service. Duban pled guilty to those offenses in October 2012.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, and Kathryn Keneally, Assistant Attorney Genral for the Tax Division of the Department of Justice, said that according to information produced in court:
- Duban was a Certified Public Accountant who ran an accounting firm called Duban Sattler and Associates, LLP (formerly Duban Accountancy, LLP), in Los Angeles, California. Duban provided accounting and tax planning services to Hawaii residents Charles Alan Pflueger, James Pflueger, and some of the Hawaii-based entities they controlled, including Pflueger, Inc. and Pflueger Properties.
- Beginning as early as 2003, Duban knew that personal expenses of Pflueger, Inc. owner Charles Alan Pflueger were being paid for by Pflueger, Inc. and illegally deducted on corporate income tax returns as business expenses. Duban also knew that some personal expenses of another co-defendant were being paid for and illegally deducted by Pflueger, Inc.
- In preparing tax returns for Charles Alan Pflueger and another co-defendant from at least 2003 to 2006, Duban did not include as additional items of income all personal expenses of which he was aware were paid for by Pflueger, Inc. and constituted income to the taxpayers.
- In connection with the 2007 sale of Hacienda, a San Diego, California investment property owned by Pflueger Properties, Duban agreed with another co-defendant to file a false Pflueger Properties 2007 partnership income tax return and false individual income tax return which falsely reported the gain on the sale of the property, which sold for $27,500,000. In particular, Duban reported the basis of Hacienda as approximately $7 million higher than its actual basis.
- Prior to the sale of the Hacienda property, Duban and others assisted the same co-defendant in creating a nominee Cook Islands trust and opening a bank account at Wegelin Bank in Switzerland in the name “Southpac Trustee International, Inc., as Trustee of the Vista Pacifica Trust.” Proceeds of the Hacienda sale, over $14 million, were sent to the Wegelin account. Duban and a New York-based firm served as investment managers for the account. Duban and the co-defendant did not timely report the co-defendant’s beneficial interest in the Swiss account on Schedule B of a Form 1040 individual income tax return or by filing a Report of Foreign Bank Account (“FBAR”).
- Duban had an interest in other foreign bank accounts that he failed to properly report to the government. For at least 2006 and 2007, Duban failed to report his interest in at least one New Zealand account, held in the name of Lookout Point Limited, on Schedule B of his individual income tax returns or by filing an FBAR.
Three of Duban’s codefendants, Alan Pflueger, Randall Kurata, and Julie Kam previously pleaded guilty. Alan Pflueger pleaded guilty to willfully filing his own false 2005 Form 1040. In his plea agreement he admitted that from 2003 through 2005, personal expenses were paid for on his behalf by Pflueger, Inc., and Pacific Auto Distributors, LLC, another entity he owned, and his personal tax returns did not report these personal expenses as income. Randall Kurata, CFO of Pflueger, Inc., pleaded guilty to willfully filing a false 2003 Form 1120, U.S. Corporation Income Tax Return, for Pflueger, Inc., which improperly deducted as business expenses significant personal expenses of Alan Pflueger. Julie Kam, Alan Pflueger’s executive assistant, pleaded guilty to willfully filing her own 2004 Form 1040, which did not report personal expenses paid to her through Pacific Auto Distributors. Judge Kobayashi sentenced Alan Pflueger to 15 months’ imprisonment, while Randall Kurata and Julie Kam were both sentenced to terms of probation.
The indictment resulted from an investigation conducted by IRS - Criminal Investigation. Assistant United States Attorney Leslie E. Osborne, Jr. and Tax Division Trial Attorneys Timothy J. Stockwell and Dennis R. Kihm, handled the prosecution.