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Wednesday 16 April 2014
Hedgesville Sex Offender Charged with Failure to RegisterRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs Specialist
ELKINS, WEST VIRGINIA — A sex offender who moved from Arizona to West Virginia has been indicted for failing to register his status as required by federal law.United States Attorney William J. Ihlenfeld, II, announced that Fouad Irvin FAKHRA, age 28, of Hedgesville, West Virginia, was charged with “Failure to Register as a Sex Offender.” FAKHRA has a prior felony conviction for “Endangering the Welfare of a Child” in Platte County, Missouri, and is alleged to have failed to register as a sex offender after he moved to West Virginia in 2013.
This case was investigated by the United States Marshals Service and will be prosecuted by Assistant United States Attorney Stephen L. Vogrin.
An indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.Four Kenyan Nationals Sentenced in Marriage Fraud ConspiracyRead the Press Release
HOUSTON – Four Kenyan nationals residing in Houston have been sentenced for conspiracy to commit marriage fraud, marriage fraud and visa fraud, announced United States Attorney Kenneth Magidson. Herman Ogoti, 53, Alfonso Ongaga, 36, Andrew Mokoro, 36, and Rebmann Ongaga, 33, were all convicted following a seven-day trial on Nov. 14, 2013. Ogoti and Alfonso Ongaga were also convicted of unlawful procurement of naturalization.
Today, U.S. District Judge Melinda Harmon sentenced Alfonso Ongaga and Andrew Mokoro to terms of 16 months in federal prison, while Ogoti and Rebmann Ongaga each received six-month terms. Judge Harmon also signed an order revoking the naturalization of Ogoti and Alfonso Ongaga, thereby stripping them of their fraudulently acquired U.S. citizenship.
A fifth defendant charged in the case, Andrew Mitema, 35, of Houston, pleaded guilty in advance of trial to conspiracy to commit marriage fraud and tampering with a witness. He is set for sentencing on April 23, 2014.
The defendants conspired together to recruit and pay U.S citizens to enter into fraudulent marriages for the purpose of receiving lawful permanent resident status or citizenship. Before entering the U.S., each of the defendants applied for student visas. All but Rebmann Ongaga were granted those visas and used them to enter the country. After his student visa was denied, Rebmann Ongaga, working with his other co-conspirators, flew a recruited U.S. citizen to Kenya for the sole purpose of conducting a sham wedding ceremony. After two days in Kenya, the woman returned to the United States. Several months later, Rebmann Ongaga entered the U.S. with a spouse visa.
After entering the country, the remaining defendants married recruited American citizens, most of whom were related to each other and to the citizen who traveled to Kenya. Each recruited woman was to be paid $5,000 for her participation in the sham marriages.
The scheme was uncovered Nov. 10, 2009, after two additional recruited women were detained at the U.S. Passport Office in Houston, suspected of committing passport fraud. They had told officials that they were traveling to Africa “to see the animals,” although they did not know where. Upon further questioning, they admitted they were both recruited to travel to Africa to marry the recruiters’ family members. At trial, surveillance video showed the two women entering into the passport office with a male, later identified as Mokoro.
The case was investigated by the Department of State – Diplomatic Security Service, Immigration and Customs Enforcement - Enforcement and Removal Operations and Department of Homeland Security - Fraud Detection and National Security. Assistant United States Attorneys Kebharu H. Smith and Suzanne Elmilady and Department of Justice Trial Attorney Ashlee McFarlane prosecuted the case.
Fort Thompson Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Fort Thompson, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on April 9, 2014, by U.S. District Judge Roberto A. Lange.
Jordan Traversie, age 23, was sentenced to 18 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Traversie was indicted by a federal grand jury on November 14, 2013. He pled guilty on January 14, 2014.
The conviction stems from an incident occurring between August 4, 2012, and September 30, 2012, when Traversie knowingly engaged in sexual intercourse with the victim who had not attained the age of 16 and was at least 4 years younger than Traversie.
This case was investigated by the Bureau of Indian Affairs. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Traversie was immediately turned over to the custody of the U.S. Marshals Service.
Former Vice President of the WineTasting Network Pleads Guilty to Mail Fraud and Tax EvasionRead the Press Release
SAN FRANCISCO – Martin Christopher Edwards of Napa, California, pleaded guilty yesterday to mail fraud and tax evasion, announced U.S. 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 plea agreement, while Edwards was the Vice President and General Manager of the WineTasting Network (“WTN”), he created Dufrane Compliance Trust, a fictitious entity that purported to provide compliance services to wineries and wine retailers. Edwards directed WTN to make payments to the Dufrane Compliance Trust totaling approximately $894,000. Edwards falsely represented to WTN employees that these payments were for tax compliance services rendered by Dufrane Compliance Trust, when, in fact, no such services were rendered. He deposited those funds into an account that he controlled and then used the money for his own personal expenses, including the purchase of a BMW, vacations, meals, and a cruise. In addition, during tax years 2010, 2011, and 2012, Edwards did not declare any of the fraudulently obtained funds on his federal income tax returns.
The maximum statutory penalty for mail fraud in violation of Title 18, United States Code, Section 1341, is a prison term of 20 years, and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. The maximum statutory penalty for tax evasion in violation of Title 26, United States Code, Section 7201, is a prison term of 5 years, and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution.
Edwards sentencing is scheduled for Aug. 5, 2014, before the Honorable William Alsup, United States District Court Judge in San Francisco.
Kim A. Berger and Arvon Perteet are the Assistant U.S. Attorneys who are prosecuting the case with the assistance of Rawaty Yim and Bridget Kilkenney. This prosecution is the result of an investigation by the FBI, and the IRS, Criminal Investigation Division.
(Edwards information )
(Edwards indictment )
Former U.S. Army Soldier Sentenced to Nearly 30 Years in Federal Prison for Production of Child PornographyRead the Press Release
In Waco this afternoon, 41-year-old former U.S. Army sergeant Gary Allen Burgess was sentenced to 340 months in federal prison for production of child pornography announced United States Attorney Robert Pitman and Federal Bureau of Investigation Acting Special Agent in Charge Aaron C. Rouse, San Antonio Division.
In addition to the prison term, U.S. District Judge Walter S. Smith, Jr. ordered that Burgess pay a $1,000 fine and $80,000 restitution to his victim. Judge Smith also ordered that Burgess be placed under supervised release for a period of eight years after completing his prison term.
On June 6, 2013, Burgess pleaded guilty to one count of production of child pornography. According to court records, in late 2011, U.S. Army Criminal Investigation Division authorities executed a search authorization at the defendant’s residence on Fort Hood based on a report of a sexual assault of a minor. A forensic examination of various seized electronic media which belonged to the defendant revealed the presence of approximately 80 sexually explicit images involving an individual under the age of 12.
Burgess has remained in federal custody since his arrest in December 2012.
In October 2013, Burgess’ wife, Caroline, was sentenced to two years in federal prison followed by one year of supervised release and ordered to pay a $1,000 fine after pleading guilty to one count of tampering with a witness, victim or informant. According to court records, in March 2012, Caroline Burgess attempted to persuade a minor victim in this case to recant allegations of sexual abuse against Gary Burgess.
This matter was investigated by the Federal Bureau of Investigation together with the U.S. Army Criminal Investigation Division. Assistant United States Attorney Greg Gloff prosecuted this case on behalf of the Government.
Former National Fast Food Restaurant Chain Employee and Co-Defendant Plead Guilty in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, announce that Tekia Jones, 37, of Hallandale, and Ivory Covington, 29, of Miami, each pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for June 24, 2014 before U.S. District Judge William P. Dimitrouleas.
According to court documents, Jones was an employee of a national fast food restaurant chain and had access to employees’ names, social security numbers and dates of birth, but did not have permission to possess the employees’ information outside of her employment. On March 10, 2013, during an inventory search of a car driven by Covington, but shared and controlled by Covington and Jones, 118 names, social security numbers and dates of birth were found that belonged to former and current employees of this national fast food restaurant chain, along with two GreenDot Visa prepaid debit cards.
The defendants face a maximum sentence of ten years in prison for the access device fraud charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Letter Carrier Pleads Guilty to Illegally Destroying MailRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Daniel Brautlacht, 20, of Cheektowaga, N.Y., pleaded guilty before Chief U.S. District Court Judge William M. Skretny, to delay or destruction of mail. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.
Assistant U.S. Attorney, Russell T. Ippolito, Jr., who is handling the case, stated that the defendant started working for the United States Postal Service (“USPS”) as a city carrier assistant on March 9, 2013. In this position, Brautlacht was responsible for delivering letters, postal cards, packages, bags or mail on behalf of the USPS.
On March 21, 2013, while delivering mail on Davey Street in the City of Buffalo, the defendant unlawfully secreted and destroyed 31 pieces of mail, including nine pieces of First Class mail. A neighbor on Brautlacht’s route observed the defendant discard the mail into a garbage receptacle. According to admissions made by Brautlacht, the mail had become jumbled and disorganized. Rather than re-ordering the mail, the defendant discarded it. Brautlacht committed these acts less than two weeks after starting work at the USPS.
The plea is the culmination of an investigation on the part of the U.S. Postal Service Office of Inspector General, Eastern Area Field Office, under the direction of Special Agent in Charge Monica Weyler.
Sentencing is scheduled for July 30, 2014 at 9:00 a.m. before Judge Skretny.
Former Lackawanna County Attorney Sentenced to Prison for Federal Income Tax FraudRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that former Lackawanna County Attorney Danielle Ross Pietralczyk, age 37, of Jermyn, Pennsylvania was sentenced today to one year imprisonment for federal income tax fraud by Senior U.S. District Judge A. Richard Caputo in federal court in Wilkes-Barre.
According to United States Attorney Peter Smith, Ross failed to report any amounts of income she received from private paying clients while acting as the sole guardian ad litem for the Lackawanna County Family Court on her personal federal income tax returns for calendar year 2008, 2009 and 2010.
Ross pled guilty to filing a false return for 2009 in December 2013. Her husband, Walter Pietralczyk, pled guilty to a tax misdemeanor charge in connection with the joint personal tax return of the couple in December 2013. No sentencing date has been set.
As the sole guardian ad litem for the Lackawanna County Family Court, Ross was paid an annual compensation of $38,000. Pursuant to a contract between Ross and Lackawanna County, Ross was permitted to bill private paying parties above her County compensation at a rate of $50 per hour. The only income Ross reported for 2009 and 2010 was her County compensation reported on 1099 Forms which she received as an independent contractor hired by Lackawanna County. The government alleged that Ross managed and exercised complete control over her private billings and income. That income was known only to Ross and not Lackawanna County, nor was Lackawanna County required to approve Ross’s private billings.
The guardian ad litem serves as the representative of the interest of children in family court. Ross was dismissed as Lackawanna County guardian ad litem in February 2013 after her indictment on the federal tax charges. Her license to practice law was suspended in December 2013.
The prosecution was the result of a joint investigation by the United States Internal Revenue Service (IRS), Criminal Investigations, the Federal Bureau of Investigation (FBI), and the Lackawanna County District Attorney’s Office. Prosecution was handled by Assistant United States Attorney Michelle Olshefski.
In addition to the one year prison sentence, Ross was sentenced to one year of supervised release and ordered to pay restitution in the amount of $63,124 plus interest and penalties. Ross is scheduled to report to the custody of the Bureau of Prisons on May 12, 2014.
Former Construction Company Officer Sentenced to 5 Years in Prison for Fraud ConspiracyRead the Press Release
Jackson, Miss - H. Claiborne Frazier, of Jackson, was sentenced to serve 60 months in federal prison and pay a $10,000 fine for his role in a conspiracy with his brother, Austin W. Frazier, and his father, C.E. Frazier, Jr., to commit bank fraud, mail fraud, and wire fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen. Frazier pled guilty to the charges on September 16, 2013. Austin and C.E. Frazier, Jr., were each sentenced on March 10, 2014. Austin W. Frazier was sentenced to 51 months in federal prison to be followed by 3 years of supervised release. C.E. Frazier, Jr., was sentenced to 31 months in federal prison to be followed by 3 years of supervised release. All defendants will be ordered to pay restitution in amounts to be determined by the Court at a future date.
From January 2003 through at least June 2008, the Fraziers conspired to commit bank fraud, mail fraud and wire fraud through Frazier Construction Company, Inc., Frazier Development Company, LLC, Van Buren LLC, and Olde Colony, LLC. The Fraziers defrauded BancorpSouth Bank in connection with a $5.4 M construction loan and M&F Bank in connection with a $2.8M construction loan. They also defrauded their bonding company, Travelers Casualty and Surety Company of America, to get funding to pay Frazier Construction subcontractors and to obtain funding to continue the daily business operations of Frazier Construction to complete its outstanding construction projects.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carla J. Clark is prosecuting the case for the government.
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:
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You can also fax information to:
(225) 334-4707
or e-mail it to:
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Former City Clerk in Havana, KSSentenced for EmbezzlementRead the Press Release
WICHITA, KAN. A former city clerk for the city of Havana, Kan., was sentenced Wednesday to two years supervised release, U.S. Attorney Barry Grissom said. She also was ordered to pay a total of more than $59,000 in restitution to the city of Havana, Cross Point Baptist Church and an insurance company
Diana L. Cox, 67, Havana, Kan., pleaded guilty to one count of bank fraud and one count of wire fraud. In her plea, she admitted embezzling $14,658 from the city of Havana while she was working as city clerk. On Aug. 18, 2011, she presented documents to the Arvest Bank in Caney, Kan., falsely stating that the Havana City Council had voted to change its policy to require only one signature on checks written for city business.
She also admitted that while she was treasurer of the Cross Point Baptist Church she devised a scheme to defraud the church of approximately $44,568. On Dec. 30, 2011, she caused the church to electronically transfer approximately $2,536 to Vanderbilt Mortgage and Finance to make a mortgage payment due on her daughter’s home.
Grissom commended the FBI and Assistant U.S. Attorney Mona Furst for their work on the case.
Former CFO of Rothstein, Rosenfeldt and Adler, P.A. Charged with Conspiracy to Launder Money and to Defraud A Financial InstitutionRead 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 José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigations (IRS-CI), announce the filing of charges against Irene Shannon, formerly known as Irene Stay, 50, of Miami, for conspiring to commit crimes through the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA). The defendant was the Chief Financial Officer of RRA. In 2009, it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements.
The information, which was filed earlier today, charges Shannon with conspiracy to commit money laundering and to defraud a financial institution, in violation of 18 U.S.C. ' 371. If convicted, the defendant faces a maximum statutory sentence of up to five years in prison.
According to the information, Shannon oversaw the accounting functions of RRA, including the deposits and withdrawals made by RRA and Rothstein at TD Bank and other financial institutions. In furtherance of the Ponzi scheme, Shannon transferred hundreds of millions of dollars obtained from investors to pay prior investors in the scheme and to supplement and support the operation and activities of RRA, among other purposes. The information further charges that the defendant was well aware that hundreds of millions of dollars were not being held in trust accounts for investors, contrary to what those investors had been told, and that the funds were instead being disbursed to further Rothstein’s fraudulent scheme. The information also charges that the defendant utilized her position to float checks between and among certain bank accounts maintained by RRA in a form of bank fraud commonly known as “check kiting.”
U.S. Attorney Wifredo A. Ferrer stated, “Once again, the information filed today reaffirms that Rothstein’s massive fraud could not have been the work of one person. As alleged in the information, Irene Shannon played an important role in carrying out Rothstein’s fraud and concealing it from the investors. Indeed, as Chief Financial Officer of RRA, Shannon knew hundreds of millions of dollars of investor funds were not being held in trust accounts and that the funds were being disbursed to further Rothstein’s fraudulent scheme. Shannon is now the eighteenth accomplice to be held accountable in Rothstein’s $1.2 billion Ponzi scheme.”
“Scott Rothstein was the mastermind of a massive Ponzi scheme, but he needed a trusted agent who knew how to shuffle money to keep the scheme running,” said George L. Piro, Special Agent in Charge, FBI Miami. “Irene Shannon, Rothstein, Rosenfelt and Adler’s Chief Financial Officer, transferred millions of dollars and floated innumerable checks in an effort to make it all look legitimate. It wasn’t and now she will be held accountable.”
IRS Special Agent in Charge José A. Gonzalez stated, “As Chief Financial Officer of Rothstein, Rosenfeldt and Adler, P.A., Shannon was in a position to conspire and actively participate with Scott Rothstein in his massive money laundering scheme. By following the money trail, IRS Special agents were able to determine that Shannon assisted Scott Rothstein by conducting numerous fraudulent financial transactions designed to deceive investors by creating a facade of wealth. Today’s message serves as a reminder that those who engage in the deception and financial exploitation of honest investors will be held accountable for their actions.”
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachment:
Irene Shannon - Information (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Business Manager Sentenced for Embezzling $170,000 from Brookside Physician OfficeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former business manager for a Brookside physician’s office was sentenced in federal court today for a fraud scheme in which she embezzled $170,000 from her employer.
Eileen Kisner, also known as “Anne,” 57, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Kisner to pay $170,232 in restitution.
On Nov. 20, 2013, Kisner pleaded guilty to mail fraud. Kisner was the business manager at Brookside Family Medicine from 2002 to 2010. During that time, she used her employer’s credit cards for her personal use and benefit when she was not authorized to do so. Kisner stole approximately $170,232 from Brookside over eight years. Kisner created fraudulent entries in the business ledger to provide to the company’s accountant to avoid detection of her embezzlement.
As a result her crimes, Dr. Darren Killen had to declare bankruptcy and sell his business. Shortly after she was fired from her position at Brookside, Kisner left the United States and went to Europe for almost three years (during which time she worked as a nanny in the Netherlands for six months then went to work for LED in the Netherlands). She was arrested as she deplaned in Philadelphia, Penn., on Feb. 15, 2013, having been detected by the Transportation and Safety Administration (TSA) in a records comparison check between Europe and the United States while her plane was in flight.
According to court documents, Kisner charged items at Southwest Airlines, Northwest Airlines, Tan World, Halls, Nordstroms, Ann Taylor, Price Chopper, TJ Maxx, Costco, Talbot’s and Pottery Barn. In addition, she charged items at Home Depot, Target, Woodland Shutters (over $4,000), Z Gallerie, Wal-Mart and Polo/Ralph Lauren. The balances on the credit cards were paid by funds from the company’s bank account. Kisner also paid for personal expenses by mailing checks to American Family Insurance (car insurance), GMAC (Hummer car payments) and Visa from Brookside’s bank account for her own personal use and benefit.
Kisner applied for at least two credit cards for Brookside, according to court documents, which she had issued in her husband’s name. Those credit cards were used to pay her husband’s personal expenses. Kisner also paid for her home gas bill several times with Brookside money. Kisner did so by having her personal address listed with Brookside’s name above the address. Kisner would then attach her personal gas bill to Brookside’s gas bill and pay both bills with one of Brookside’s checks.
Kisner pleaded guilty to a mail fraud count that charges her with mailing a $224 check from the company’s account to pay for her personal car insurance on a family car, a Sierra. Kisner was not authorized to pay funds from Brookside’s bank account for the car insurance.
This case was prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI.Five Convicted in Massive Stash House CaseRead the Press Release
HOUSTON – Five men arrested last month in connection with the discovery of more than 100 illegal aliens in an area stash house have entered guilty pleas, announced United States Attorney Kenneth Magidson.
Jose Aviles-Villa, 34, Jonathan Solorzano-Tavila, 28, Antonio Barruquet-Hildeberta, 40, Jose Cesmas-Borja, 22, and Eugenio Sesmas-Borja, 20, were arrested March 19, 2014. On that date, 115 illegal aliens were discovered in a stash house on Almeda School Road in Houston. A two-count criminal information was filed April 8, 2014, charging the five men, all from from Michoacan, Mexico, with conspiracy to harbor and transport ilegal aliens and use of a firearm during and in relation to a crime of violence.
Today, all five defendants pleaded guilty to both counts as charged.
The convicted smugglers admitted they obtained substantial profits as a result of the conspiracy. They had established networks who brought the aliens into the U.S. illegally across the Southwest border. The illegal aliens were then held in stash houses while the smugglers arranged payment of remaining smuggling fees from their families.
While in the stash house, the conspirators seized the victim aliens’ clothes, shoes, phones and other possessions. The conspirators used guns, paddles, tasers and other equipment to control and prevent the illegal aliens from escaping from the stash house. They guarded the aliens with guns displayed in plain view and threatened to kill them by shooting them in the back of the head if they tried to escape.
In one specific instance, the conspirators contacted the mother of one of the stashed aliens and told her to pay an additional $13,000 for the victim and her two children. She was advised that if she did not pay, they would “make her family disappear and make her family pay.”
Sentencing has been set for July 30, 2014. At that time, they each face up to 10 years in federal prison and a $250,000 fine for the conspiracy conviction as well as a mandatory minimum of five years for using a firearm which must be served consecutively to any other prison term imposed.
They will all remain in custody pending that hearing.
The case was investigated by Homeland Security Investigations with the assistance of the Houston Police Department. Assistant United States Attorney (AUSA) Julie Searle and Special AUSA Rick Bennett are prosecuting.
Final Defendant Sentenced in Foreclosure Rescue/Drug Distribution SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 43-year-old McKinney, Texas man has been sentenced to federal prison in connection with a combination foreclosure rescue and drug distribution scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Julius Williams pleaded guilty on Aug. 21, 2013 to conspiracy to commit mail and wire fraud and was sentenced to 46 months in federal prison today by U.S. District Judge Marcia Crone. Williams was also ordered to pay $1,432,208.00 million in restitution.According to information presented in court, from February 2007 to June 2012, Jarrod Williams, Julius Williams, and Charles Williams, controlled and operated Applied Investment Strategies, Inc. (AIS), which marketed itself as a foreclosure rescue service offering assistance to homeowners at risk of foreclosure. However, once a homeowner detained AIS, the defendants fraudulently used the customer’s personal identification information to prepare and send false military orders to banks and lending institutions in order to claim relief from foreclosure under the Servicemember’s Civil Relief Act. AIS would then lease out the home and collect rental payments for AIS’ benefit. The scheme involved approximately 38 homes throughout North Texas and also extended to interfering in the repossession of automobiles. After at least one of the fraudulently-acquired properties was vacated, Charles Williams, Christopher Carter and Sean Harrell turned it into a marijuana grow operation that housed approximately 1,300 marijuana plants that were intended for distribution. A federal grand jury returned an indictment on July 11, 2012, charging the defendants with federal violations.
Jarrod Williams, 34, of McKinney, Charles Williams, 39, of McKinney, Christopher Carter, 34, of Leicester, England, and Sean Harrell, 38, of Dallas are each currently serving prison sentences ranging from 41 to 57 months.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Shamoil T. Shipchandler.
####Father and Son Plead Guilty to Federal Charges in Investigation Involving D.C. Taxicab Industry-Admit Acting Illegally in Attempts to Generate Business-Read the Press Release
WASHINGTON – Anthony C. Y. Cheng, Sr., and his son, Anthony R. Cheng, Jr., pled guilty today to federal charges stemming from an undercover investigation into a scheme to illegally generate business through the District of Columbia taxicab industry, announced U.S. Attorney Ronald C. Machen Jr. and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office.
Anthony Cheng, Sr., 65, and his son, 40, both of Alexandria, Va., pled guilty in the U.S. District Court for the District of Columbia. Anthony Cheng, Sr. pled guilty to a misdemeanor charge of making an offer of unauthorized compensation to a public official. Anthony Cheng, Jr. pled guilty to a felony charge of payment of a gratuity to a public official.
The Honorable Ellen S. Huvelle scheduled sentencing for July 17, 2014. Anthony Cheng, Sr. faces a statutory maximum of a year in prison and financial penalties. Anthony Cheng, Jr. faces a statutory maximum of two years of incarceration and financial penalties. Under federal sentencing guidelines, the Chengs face up to six months in jail and fines of up to $5,000.
According to plea documents filed today, Anthony Cheng, Sr. is the owner of businesses, including Tony Cheng’s Mongolian Restaurant, in the Chinatown area of Washington, D.C. His son owned a bus company that provided interstate transportation to the public.
The charges involve the Chengs’ dealings in 2010 and 2011 with a person described in the court documents as “Public Official Number One,” who at the time chaired the District of Columbia Taxicab Commission. Unbeknownst to the Chengs, “Public Official Number One” was working in cooperation with the FBI on an investigation.
“With today’s guilty pleas, a financially successful father and son confessed to their efforts to pay off public officials to advance their business interests,” said U.S. Attorney Machen. “The Chengs should be commended for owning up to their crimes before trial, but their admissions are a sobering reminder that we must continue to aggressively fight the pay-to-play culture that, if left unchecked, can determine who has the ability to engage in business opportunities with the government. We hope that these convictions serve as a warning to other business owners who are tempted to make illicit payments to public officials in order to get ahead.”
“The integrity of our government is threatened when individuals engage in pay-to-play schemes with public officials,” said Assistant Director Parlave. “The FBI is committed to investigating corrupt backroom deals that work to influence government officials and restoring an even marketplace for honest business owners who do business in our city.”
The D.C. Taxicab Commission, an agency within the District of Columbia government, has authority for intrastate regulation of the taxicab industry. Among its many responsibilities, the taxicab commission handles the licensing of owners, operators, companies, associations and fleets. The agency also employs inspectors who are deployed to prevent illegal taxicab operations within the District of Columbia. If inspectors identify taxicabs that are operating unlawfully, they can have the vehicles towed and impounded.
According to today’s court filings, Anthony Cheng, Sr. decided in or about the fall of 2010 to start a towing company in the District of Columbia. In order to do so, he was required to have a license for a locked storage facility, a towing license, and insurance. On or about Dec. 18, 2010, Anthony Cheng, Sr. met with “Public Official Number One” at Cheng’s restaurant. At that time, he offered ”Public Official Number One” compensation of 10 percent of the profits of his towing company in return for assistance in completing the paperwork associated with establishing the business and assisting the company in securing towing assignments from the taxicab commission. In a follow-up meeting on Jan. 12, 2011, also at the restaurant, Anthony Cheng, Sr. again requested the assistance of “Public Official Number One,” including the securing of at least 100 towing assignments per month from the taxicab commission.
Also in 2011, according to the court documents, both of the Chengs met with “Public Official Number One” regarding licenses for multi-vehicle taxicab companies. At the time, a legislatively mandated moratorium was in place prohibiting the issuance of any new business licenses to operate new taxicab companies, taxicab associations and limousine businesses.
The Chengs and “Public Official Number One” discussed a plan to circumvent the moratorium by using falsified backdated corporate documents representing that their taxicab companies had been in existence since 2009. “Public Official Number One” advised Anthony Cheng, Jr. of the need to make a “contribution” of not more than $1,500 for his help with the backdated paperwork. On or about Jan. 31, 2011, “Public Official Number One” provided Anthony Cheng, Jr. with backdated operating authority licenses to make it appear as if the companies existed before the moratorium was in place. During that meeting, based on prior discussions with and at the direction of his son, Anthony Cheng, Sr. reimbursed “Public Official Number One” with $1,500 in cash on his son’s behalf.
In addition, according to the court documents, Anthony Cheng, Jr. met in 2011 with a person he believed was an official with the District of Columbia Department of Consumer and Regulatory Affairs. This person actually was an undercover FBI Special Agent. On or about March 31, 2011, Anthony Cheng, Jr. met with the undercover agent and provided him with $250 in cash in return for backdated certificates of occupancy for two multi-vehicle taxicab companies.
The Chengs obtained two licenses for multi-cab companies – named Green Top Cab and ECO CAB Company - but never opened the businesses.
In announcing the pleas, U.S. Attorney Machen and Assistant Director in Charge Parlave commended the efforts of those who investigated the case from the FBI’s Washington Field Office. They expressed appreciation for the assistance provided by the Washington Field Office of the Internal Revenue Service-Criminal Investigation. They also acknowledged the work of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialists Krishawn Graham and Tasha Harris; former Paralegal Specialist Diane Hayes; and Assistant U.S. Attorneys Lionel André and Loyaan A. Egal, who are prosecuting the matter.
14-086Eleven Individuals Arraigned in Operation "Battle of Honey Springs"Read the Press Release
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable”
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that the following individuals were arraigned on April 15, and 16, 2014, on charges of Conspiracy To Possess With Intent To Distribute And Distribute Five Hundred (500) Grams Or More Of Methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A).
MICHAEL A. METZKER, a/k/a "Lurch", age 36, of Checotah, Oklahoma
MICHAEL W. METZKER, a/k/a "Chic", age 58, of Checotah, Oklahoma
LACEY RENEE PARK, age 29, of Checotah, Oklahoma
DEREK PARK, age 31, of Checotah, Oklahoma
MARGARET CASEY, age 45, of Checotah, Oklahoma
SHAWNA VANZANT, age 33, of Henryetta, Oklahoma
JACKIE DALE BRUMLEY, age 44, of Noble, Oklahoma
CORNELL TYLEIZ HARVEY, age 29, of Oklahoma City, Oklahoma
SCOTT WESLEY DUNCAN, age 38, of Oklahoma City, Oklahoma
SUNNY ANN MARTINEK, age 38, of Norman, Oklahoma
STEVEN D. CARR, age 43, formerly of Checotah, Oklahoma
The Criminal Complaint filed on April 14, 2014, alleges that beginning in or about April 2013, up to and including April 14, 2014, in the Eastern District of Oklahoma and elsewhere, the defendants, did willfully and knowingly combine, conspire, confederate and agree together, and with other persons known and unknown, to Possess with Intent to Distribute and Distribute 500 grams or more of Methamphetamine.
Michael A. Metzker, a member of the Universal Aryan Brotherhood (UAB), was incarcerated in the Oklahoma Department of Corrections from December 24, 2009, until January 8, 2014. Beginning in or before April 2013, up to an including January 8, 2014, Michael A. Metzker utilized cellular telephones, illegally smuggled into the prison, to coordinate the acquisition and distribution of methamphetamine in Eastern Oklahoma. Upon release from incarceration up to and including April 14, 2014, Michael A. Metzker and his coconspirators continued to acquire and distribute methamphetamine within Eastern Oklahoma.
The charges arose from a joint investigation by the Drug Enforcement Administration, Bureau of Indian Affairs, McAlester Police Department, the Muskogee Police Department, the Checotah Police Department, the Eufaula Police Department, the Stigler Police Department, Districts 18, 23, and 25 District Attorney’s Drug Task Force, the Oklahoma Highway Patrol, the Okmulgee County Sheriff’s Office, the McIntosh County Sheriff’s Office, the Pittsburg County Sheriff’s Office, the Oklahoma Department of Corrections, United States Department of Homeland Security, and the United States Marshal Service. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. All defendants were remanded into the custody of the United States Marshal Service.
The statutory range of punishment for a violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(A), is not less than 10 years and not more than life imprisonment and/or up to $10,000,000.00 in fines.
Assistant United States Attorney Shannon Henson represented the United States.
East Texas Men Sentenced for Methamphetamine TraffickingRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – Two East Texas men have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Chadwick Marvin Thompson, 36, of McKinney, pleaded guilty on Nov. 21, 2013, to conspiracy to distribute 50 grams or more of methamphetamine and was sentenced to 240 months in federal prison today by U.S. District Judge Leonard E. Davis. As part of his plea, Thompson has agreed to the forfeiture of $8,700 cash along with six firearms and ammunition.
Brandon Lee Lagrone, 36, of Carthage, Texas, pleaded guilty on Dec. 9, 2013, to using a communication facility to facilitate the commission of a felony and was sentenced to 36 months in federal prison today by U.S. District Judge Leonard E. Davis.
According to information presented in court, on multiple occasions in 2012 and 2013, Thompson sold methamphetamine and firearms to others. On July 20, 2013, Lagrone used a telephone to facilitate the commission of the felony offense of possession with intent to distribute methamphetamine. Thompson, Lagrone and two others were indicted by a federal grand jury on Mar. 27, 2013, and charged with drug trafficking violations.
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This case was investigated by the Texas Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Mary Ann Cozby.Devan Kelly Sentenced to 7 Years in Prison for Distribution of Methamphetamine in LewistownRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, on March 31, 2014, before U.S. District Judge Brian M. Morris, DEVAN CLINTON KELLY, 27, of Brusett, Montana, was sentenced to a term of 84 months' imprisonment, five years of supervised release, and a special assessment of $100.
Kelly was sentenced in connection with his December 19, 2013, guilty plea to distribution of methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Jessica Betley, the government stated it would have proved that beginning in January 2013, undercover agents began to buy methamphetamine from Devan Kelly. These sales progressed, and in April, agents inquired into whether Kelly would sell them a pound of methamphetamine. Kelly agreed to sell a pound of methamphetamine for $23,000.00. Kelly and the agents then agreed the sale would take place in Lewistown, Montana, on April 29, 2013. The sale took place, and Kelly gave undercover agents the pound of methamphetamine. This methamphetamine was tested and the laboratory concluded it was 99.5% pure and contained 439.0 grams of actual methamphetamine.
This investigation was conducted by the FBI Violent Crimes Task Force.
Des Plaines Man Sentenced to 50 Years in Prison for Sexually Exploiting 11 Children and Producing Child PornographyRead the Press Release
CHICAGO ― A former Des Plaines man was sentenced to 50 years in federal prison for sexually molesting nine children and producing child pornography with seven of those victims, as well as creating pornographic images of two other victims whom he sexually exploited. The defendant, BOBBY CRUZ, 34, pleaded guilty last September to one count of interstate travel to engage in sex with a minor and two counts of producing child pornography, resolving separate federal cases that were brought in both the Northern and Central Districts of Illinois. He has remained in federal custody since he was arrested in November 2011.
In an emotional sentencing hearing yesterday afternoon, two victims and a parent of six other victims told U.S. District Judge Robert M. Dow, Jr., about the traumatic damage that Cruz inflicted upon their lives.
“The harm to the victims is incalculable,” Judge Dow said in imposing the maximum sentence under the terms of Cruz’s plea agreement. The “victims are the most vulnerable in society” and Cruz’s crimes were “brazen beyond belief,” the judge added.
Cruz sexually exploited boys and girls, who were between the ages of 2 and 11 when the abuse began, to produce child pornography. None of the victims were random and all were children that Cruz had access to being around. Cruz was ordered to remain under court supervision for life, and he must serve at least 85 percent of his sentence. There is no parole in the federal prison system.
“The defendant has imposed a life sentence on each one of these victims,” Assistant U.S. Attorney Jennie Levin argued in seeking the 50-year sentence.
“No amount of prison time seems sufficient for the unspeakable trauma Cruz inflicted on his innocent victims,” said Gary J. Hartwig, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Chicago. The sentence was announced by Mr. Hartwig and Zachary T. Fardon, United States Attorney for the Northern District of Illinois,
The investigation of Cruz began just before he was arrested when Cruz traded images of child pornography with an undercover law enforcement officer. Ultimately, agents seized 300 videos and images of homemade child pornography from Cruz’s residence, along with 1,130 additional videos and images that he possessed.
The investigation was part of Operation Predator, a nationwide HSI initiative to protect children from sexual predators, including those who travel abroad for sex with minors, Internet child pornographers, criminal alien sex offenders, and child sex traffickers. The Des Plaines Police Department and the Cook County State’s Attorney’s Office assisted in the investigation.
Connecticut Man Charged with Running Online Fake Diploma SchemeRead the Press Release
PHILADELPHIA – James Enowitch, 48, of Cromwell, CT, was charged today by information with mail fraud and aiding and abetting mail fraud, in connection with the operation of a number of fraudulent diploma mills, announced United States Attorney Zane David Memeger. As a result, between 2003 and 2012, Enowitch allegedly sold $5 million worth of fake degrees throughout the world.
According to the information, as early as 2003, Enowitch began operating a diploma mill, through which he and another co-schemer advertised and sold diplomas for a fee, but required no course work for those diplomas. It is charged that Enowitch and his co-schemer eventually operated at least seven different websites, through which they sold fraudulent degrees, including ReddingUniversity.net, GlendaleUniversity.com, SuffieldUniversity.com,SuffieldUniversity.org, GreenwoodUniversity.org, BrysonUniversity-Edu.org and WorryFreeDegree.com. It is further alleged that each of the seven websites was linked to an entity of the same name, owned by Enowitch and his co-schemer, and that those entities were diploma mills in that they had no faculty members, offered no academic curricula or services, required no course or class work, and were not recognized by the United States Department of Education. It is further alleged that Enowitch and his co-schemer went so far as to create a fraudulent accrediting body, called the “National Distance Learning Accreditation Council” (“NDLAC”), in order to claim that their diploma mills were accredited.
According to the information, Enowitch and others created phony transcripts that represented that the purchaser had taken certain coursework that the purchaser had never taken; allowed purchasers to create their own transcripts and backdate degrees; and provided fraudulent verification services to back up the fake degrees, in case an employer or other party sought verification. Enowitch and his co-schemer allegedly advertised degree packages ranging from $475 to $550 for associates, bachelors, masters, and doctoral-level degrees, with a “multi-degree discount” for buying more than one. For an additional fee, purchasers could also allegedly select grades for the phony courses included in their transcripts.
If convicted, the defendant faces a maximum possible sentence of 20 years in prison, three years of supervised release, a $250,000 fine, a $100 special assessment, and an order of forfeiture.
The case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, the Defense Criminal Investigative Service, and U.S. Immigrations and Customs Enforcement Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Matthew J.D. Hogan.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Cell Phone Store Robber Sentenced to 116 YearsRead the Press Release
A 29-year-old Detroit man was sentenced today in federal court to 116 years in prison for his role in six cellular telephone store robberies, U.S. Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement was Paul M. Abbate, Special Agent in Charge, Federal Bureau of Investigation, Detroit Field Office.
U.S. District Judge Sean F. Cox imposed sentence on Timothy Ivory Carpenter, who was convicted after a two-week jury trial in December. The jury found Carpenter guilty of committing six robberies of cellular telephone stores, and of using a gun during five of the robberies. The evidence at trial established that Carpenter and his brother, Timothy Sanders, conspired with others to rob cellular telephone stores in Detroit, Highland Park, Eastpointe, and Warren, Ohio between December 13, 2010, and December 1, 2012.
“Armed robberies at neighborhood stores make citizens fearful to carry out their daily business in our community,” McQuade said. “This lengthy sentence sends a powerful message that using guns to commit crimes will not be tolerated.”
“Aggressively pursuing violent offenders, particularly those associated with organized criminal groups, is among the highest priorities of the FBI,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Today’s sentence, along with others seen recently, sends a strong message to violent perpetrators whose actions wreak havoc upon our community—the FBI, our local, state and federal partners, and the U.S. Attorney’s Office will work tirelessly to combat violent crime and bring justice to bear on these offenders.”
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Kenneth ChadwellCanal Fulton Man Sentenced to 15 Years in PrisonRead the Press Release
A Canal Fulton man sentenced to 15 years in prison after previously been found guilty of two counts of inducing a minor to engage in sexually explicit conduct and two drug charges, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
William P. Lacey, 55, on two occasions in February 2013, did persuade, induce, entice and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct, according to the indictment.
He also possessed four kilograms of the substance a-PVP and one kilogram of the substance 4-MEC, according to court documents.
The case was prosecuted by Assistant United States Attorney Linda Barr following an investigation by the Federal Bureau of Investigation’s Safe Streets Task for and the Summit County Sheriff’s Office.
Cambria County Resident Pleads Guilty to Federal Drug ChargeRead the Press Release
JOHNSTOWN, Pa. - A resident of Northern Cambria, Pa., pleaded guilty in federal court to a charge of conspiracy to distribute heroin, United States Attorney David J. Hickton announced today.
Casey Lex, 29, pleaded guilty to one count before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that from April 2012 to March 8, 2013, Lex conspired with others to possess and distribute 100 grams or more of heroin.
Judge Gibson scheduled sentencing for Aug. 21, 2014, at 10 a.m. The law provides for a total sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation and the Cambria County Drug Task Force conducted the investigation that led to the prosecution of Lex.
Bridgestone Corp. Executive Agrees to Plead Guilty for Fixing <br /> Prices and Rigging Bids on Auto Parts Installed in U.S. CarsRead the Press Release
A former Bridgestone Corp. executive has agreed to plead guilty and to serve 18 months in a U.S. prison for his role in an international conspiracy to fix prices and rig bids of automotive anti-vibration rubber parts sold in the United States and elsewhere, the Department of Justice announced today.
According to the one-count felony charge filed today in the U.S. District Court for the Northern District of Ohio in Toledo, Yusuke Shimasaki, along with co-conspirators, engaged in a conspiracy to allocate sales of, to rig bids for, and to fix, raise and maintain the prices of automotive anti-vibration rubber parts sold to Toyota Motor Corp., Nissan Motor Co. Ltd., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere.
According to the charge, Shimasaki participated in the anti-vibration rubber conspiracy from at least as early as January 2001 until at least December 2008. During that time period, he was employed by Bridgestone as a sales manager, an executive vice president at Bridgestone APM Co., in Findlay, Ohio, and as a general sales manager. According to the plea agreement, in addition to serving time in prison, Shimasaki has also agreed to pay a $20,000 criminal fine and to cooperate in the department’s investigation. The plea agreement is subject to court approval.
“The charge today once again demonstrates the Antitrust Division’s vigorous commitment to hold individuals accountable for engaging in anticompetitive conduct,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division’s ongoing investigation has resulted in more than two dozen executives serving prison time for their participation in illegal conspiracies involving auto parts.”
Bridgestone manufactures and sells a variety of automotive parts, including anti-vibration rubber parts, which are comprised primarily of rubber and metal, and are installed in suspension systems and engine mounts as well as other parts of an automobile. They are installed in automobiles for the purpose of reducing road and engine vibration. On Feb. 13, 2014, the Department of Justice announced that Bridgestone had agreed to plead guilty and to pay a $425 million criminal fine for its role in the conspiracy. On April 15, 2014, Yasuo Ryuto, Isao Yoshida, two former executives of Bridgestone Corp., and Yoshiyuki Tanaka, a current executive, were indicted their roles in a conspiracy to fix prices of automotive anti-vibration rubber parts.
To date, 33 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 26 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.29 billion in fines.
Shimasaki is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at (888) 647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at (216) 522-1400.Boise Man Pleads Guilty to Drug ChargeRead the Press Release
BOISE – Victor Luetta Guzman, 60, of Boise, Idaho, pleaded guilty yesterday in United States District Court to distribution of methamphetamine, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, Guzman admitted that he sold methamphetamine to an undercover police officer on eight separate occasions. Guzman admitted that during the eight transactions he sold the officer a total of over 50 grams of methamphetamine.
The charge is punishable by a minimum of five years and up to 40 years in prison, a maximum fine of $5 million, and at least four years of supervised release.
Guzman is set for sentencing on June 25, 2014, before U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Boise Police Department. The Organized Crime and Drug Enforcement Task Force (OCDETF) also contributed to the investigation. Federal partners include the Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Internal Revenue Service-Criminal Investigation, and U.S. Marshals Service.
The case is being prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
Bluefield Woman Sentenced to More Than A Year in Prison for Distributing Addictive Prescription DrugsRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin announced that Rachelle Bryant, 24, of Bluefield, West Viriginia, was sentenced in federal court in Charleston today to fifteen months in prison for distributing hydromorphone, dangerous and addictive prescription drugs. Bryant previously pled guilty in December of 2013, admitting that in May of 2013, she distributed two hydromorphone pills to an individual cooperating with law enforcement. The drug deal took place in Bluefield. The sentence imposed today was based on approximately 200 hydromorphone pills sold by Bryant.
Bryant was sentenced by Senior United States District Judge David A. Faber. The case was investigated by the Southern Regional Drug and Violent Crime Task Force and the prosecution was handled by Assistant United States Attorney John File.
This case was prosecuted under the Bluefield Pill Initiative, and was part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U. S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Austin Businessman Pleads Guilty to Possession of Child PornographyRead the Press Release
In Austin, 67-year-old President and Chief Executive Officer of Image Trends, Inc. Daniel J. Sullivan faces up to ten years in federal prison after pleading guilty earlier today to one count of possession of child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
In March 2012, HSI agents executed a search warrant at the defendant’s residence and business. A subsequent forensics examination of seized computer related items revealed the presence of approximately 600 images and 90 videos depicting child pornography.
Sullivan remains on bond pending sentencing. No sentencing date has been scheduled.
Assistant United States Attorney Matt Devlin is prosecuting this case on behalf of the Government.Astellas Pharma US, Inc. to Pay $7.3 Million to Resolve False Claims Act AllegationsRead the Press Release
PHILADELPHIA – Pharmaceutical company Astellas Pharma US, Inc., will pay $7.3 million to resolve allegations that it violated the False Claims Act in connection with its marketing and promoting of the drug Mycamine for pediatric use. The settlement was announced today by United States Attorney Zane David Memeger and the Justice Department. Astellas Pharma US, Inc., located in Northbrook, Illinois, manufactures and sells pharmaceutical drugs, including Mycamine.
The settlement resolves allegations that, between 2005 and 2010, Astellas knowingly marketed and promoted the sale of Mycamine for pediatric use, which was not a medically accepted indication and, therefore, not covered by federal health care programs. During this time period, the FDA approved Mycamine to treat adult patients suffering from serious and invasive infections caused by the fungus Candida, including infections in the esophagus, the blood and the abdomen, and to prevent Candida infections in adults undergoing stem cell transplants. From 2005 until June 2013, however, Mycamine was not approved to treat pediatric patients for any use.
“The settlement in this case further demonstrates our commitment to hold responsible any pharmaceutical company that disregards the FDA drug approval process and promotes drugs for uses before they have been deemed safe and effective,” said U.S. Attorney for the Eastern District of Pennsylvania Zane David Memeger. “It’s a message that should resonate with all drug companies: there are consequences for violating the False Claims Act and putting profit ahead of government safeguards.”“The FDA’s drug approval process requires companies to demonstrate the safety and efficacy of their products,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Justice Department will hold accountable pharmaceutical companies that skirt these rules and seek to bill federal health care programs for uses of drugs that are not reimbursable.”
As a result of today’s $7.3 million settlement, the federal government will receive $4.2 million, and state Medicaid programs will receive $3.1 million.
“Pharmaceutical companies that ignore rules designed to protect patients – in this case, children – will be held accountable,” said Nick DiGiulio, Special Agent in Charge for the United States Department of Health and Human Services in Philadelphia. “We will continue to work with the Department of Justice to root out all forms of waste, fraud and abuse in our federal health care programs.”
The allegations resolved by the settlement arose from a lawsuit filed by Frank Smith, a former Astellas sales representative, under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the government and to share in any recovery. Smith will receive $708,852.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19.1 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
For the Eastern District of Pennsylvania, the settlement in this case was handled by Assistant United States Attorney Susan Becker.
This case was a cooperative effort among the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Civil Division of the Department of Justice and the Offices of the Inspectors General of the Department of Health and Human Services and Office of Personnel Management. The lawsuit is captioned United States ex rel. Smith v. Astellas Pharma US, Inc. et al., No. 10-999 (E.D. Pa.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Click here to view the indictment
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Astellas Pharma US Inc. to Pay $7.3 Million to Resolve False<br /> Claims Act Allegations Relating to Marketing of Drug MycamineRead the Press Release
Pharmaceutical company Astellas Pharma US Inc. will pay $7.3 million to resolve allegations that it violated the False Claims Act in connection with its marketing and promotion of the drug Mycamine for pediatric use, the Justice Department announced today. Astellas Pharma US Inc., located in Northbrook, Ill., manufactures and sells pharmaceutical drugs, including Mycamine.
“The FDA’s drug approval process requires companies to demonstrate the safety and efficacy of their products,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “The Justice Department will hold accountable pharmaceutical companies that skirt these rules and seek to bill federal health care programs for uses of drugs that are not reimbursable.”
The settlement resolves allegations that, between 2005 and 2010, Astellas knowingly marketed and promoted the sale of Mycamine for pediatric use, which was not a medically accepted indication and, therefore, not covered by federal health care programs. During this time period, the FDA approved Mycamine to treat adult patients suffering from serious and invasive infections caused by the fungus Candida, including infections in the esophagus, the blood and the abdomen, and to prevent Candida infections in adults undergoing stem cell transplants. From 2005 through June 2013, however, Mycamine was not approved to treat pediatric patients for any use.
As a result of today’s $7.3 million settlement, the federal government will receive $4.2 million, and state Medicaid programs will receive $3.1 million.
“The settlement in this case further demonstrates our commitment to hold responsible any pharmaceutical company that disregards the FDA drug approval process and promotes drugs for uses before they have been deemed safe and effective,” said U.S. Attorney for the Eastern District of Pennsylvania Zane David Memeger. “It’s a message that should resonate with all drug companies: there are consequences for violating the False Claims Act and putting profit ahead of government safeguards.”
The allegations resolved by the settlement arose from a lawsuit filed by Frank Smith, a former Astellas sales representative, under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the government and to share in any recovery. Smith will receive $708,852.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Secretary of Health and Human Services Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $19.1 billion through False Claims Act cases, with more than $13.6 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was a cooperative effort among the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Civil Division of the Department of Justice and the Offices of the Inspectors General of the Department of Health and Human Services and Office of Personnel Management. The lawsuit is captioned United States ex rel. Smith v. Astellas Pharma, US Inc. et al., No. 10-999 (E.D. Pa.).
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Abilene Man Sentenced to 188 Months in Federal Prison for Producing Child PornographyRead the Press Release
LUBBOCK, Texas — Tyrell Daniels, 20, of Abilene, Texas, was sentenced today by U.S. District Judge Sam R. Cummings, to 188 months in federal prison, following his guilty plea in December 2013 to one count of producing child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Daniels has been in custody since his arrest in November 2013 on a related federal criminal complaint. A federal grand jury indicted him later that month on one count of enticement of a child and one count of production of child pornography. In accordance with the plea agreement, the enticement charge was dismissed.
According to plea papers filed, after meeting a 12-year-old female child, “Jane Doe,” online, in September 2013, Daniels communicated with her for several days using his cell phone. During that time, Daniels often discussed his desire to engage in sexual intercourse with Jane Doe, even though she had informed him that she was only 12-years-old.
On September 12, 2013, Daniels used Internet messaging to ask Jane Doe to send a topless photo of herself to him. She complied, and Daniels told her that he would not post her pictures on the Internet if she would send him a more sexually explicit photo of her genitals. While Jane Doe sent Daniels a sexually explicit photo, he told her that it was not explicit enough. Jane Doe did not send him any additional photos.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Santa Anna Police Department and the Abilene Police Department. Assistant U.S. Attorney Steven M. Sucsy prosecuted.
Tuesday 15 April 2014
“Duffle Bag Bandit” Sentenced to 60 Months in Federal PrisonRead the Press Release
BOISE B Gerald Edward Massey, 57, of Shreveport, Louisiana, was sentenced today to 60 months in prison for bank robbery, U.S. Attorney Wendy J. Olson announced. Chief Judge B. Lynn Winmill also sentenced Massey to serve three years of supervised release following his release from prison. Massey pleaded guilty on January 7, 2014.
In the plea agreement, Massey admitted that on March 6, 2013, he walked into the U.S. Bank, located at 10700 Ustick Road and intimidated the bank manager by telling her that he was robbing the bank. Massey stole $64,500 on that occasion. Massey also agreed to pay restitution totaling $83,448, for the U.S. Bank robbery and three additional bank robberies in Boise that he committed. Massey robbed a Chase Bank on December 21, 2012; a Washington Trust Bank on January 4, 2013; and a Wells Fargo Bank on January 22, 2013. Massey never possessed or represented that he had a firearm or any other weapon during any of the bank robberies.
The case was investigated by the Boise Police Department and the Federal Bureau of Investigation.
Zia Pueblo Man Sentenced for Federal Arson ConvictionRead the Press Release
ALBUQUERQUE – Lawrence Shije, 35, a member and resident of Zia Pueblo, was sentenced this morning to a year and a day in federal prison for his arson conviction. Shije will be on supervised release for three years after completing his prison sentence.
Shije was indicted on Oct. 30, 2013, and charged with setting fire to and burning a dwelling located on Zia Pueblo on June 30, 2012. On Jan. 13, 2014, Shije entered a guilty plea to the indictment and admitted maliciously setting fire to and burning a small area of a residence located on Zia Pueblo. In his plea agreement, Shije acknowledged that the owner of the residence is the mother of his two children, and that she and the children were in the residence when he started the fire. The fire burned a small area of the residence’s external wall (a patch of about 12 inches by 12 inches in size) before it was extinguished.
This case was investigated by the Southern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Special Assistant U.S. Attorney David Adams.
The case was prosecuted pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Wilson Man Sentenced for String of Armed Robberies of Wilson Convenience StoresRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on Thursday, April 10, 2014, United States District Judge Terrence W. Boyle sentenced ARTAVIOUS QUONTA BODDIE, 24, to 235 months imprisonment followed by five years supervised release. The Court also imposed restitution in the amount of $666.00.
A Federal Grand Jury returned a Criminal Indictment on October 8, 2013. On December 18, 2013, BODDIE pled guilty to conspiring to rob a business engaged in interstate commerce, in violation of Title 18, United States Code, Section 1951, and using and carrying a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A).
According to the Indictment, BODDIE conspired to rob three businesses from February 21, 2013, to February 24, 2013. The investigation revealed that on February 21, 2014, BODDIE approached the clerk at Discount Cigarettes in Wilson, North Carolina, and while brandishing a firearm, threatened to kill the clerk if the clerk did not comply with BODDIE’s demands. BODDIE robbed the establishment of an undisclosed amount of money, cigarettes and lottery tickets.
On February 24, 2013, BODDIE robbed the Kangaroo Express in Wilson, North Carolina of $80. Approximately 45 minutes later, BODDIE entered Fuel Doc in Lucama, North Carolina, and stole $406. During both of these robberies, BODDIE brandished a firearm.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Wilson Police Department; the Wilson County Sheriff’s Office; the Johnson County Sheriff’s Office; and the Kenly Police Department. Assistant United States Attorney Ethan A. Ontjes served as prosecutor on behalf of the Eastern District of North Carolina.
Williamson's Mccormick Faces Federal False-statement ChargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin today charged Darrin McCormick, 50, of Williamson, West Virginia, with making a materially false statement in a federal matter. According to the charge, filed in United States District Court in Charleston, McCormick’s false statement pertains to suspicious banking activity by Aracoma Contracting, LLC, which held an account at the Bank of Mingo, located in Mingo County, West Virginia. The charge explains that McCormick’s false statement concerned a matter within the jurisdiction of the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS). The charging document, referred to as an “information,” is attached.
“Federal investigations are serious matters,” said U.S. Attorney Goodwin, “and providing false information to federal investigators is a serious crime. When people try to lead investigators astray with false statements, justice suffers, and that hurts all of us.”
Today’s charge stems from an investigation being conducted by the FBI and IRS Criminal Investigation. Assistant United States Attorney Thomas Ryan is handling the prosecution.
NOTE: An information is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
West Hartford Woman, New Haven Man, Charged with Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that STEPHANIE ELLIOTT, 41, of West Hartford, and MICHAEL CARTER, 50, of New Haven, have been indicted for tax evasion.
This matter stems from an Internal Revenue Service investigation into high income taxpayers who have had little or no federal withholding taken out of their paychecks. The investigation revealed that individuals allegedly submitted fraudulent W-4 forms claiming numerous exemptions and had no money withheld from their wages.
The six-count indictment against ELLIOTT alleges that, during the 2007 through 2012 tax years, she paid no federal income taxes on approximately $482,912 in income she received, resulting in a federal tax loss of approximately $100,011.
The three-count indictment against CARTER alleges that, during the 2010 through 2012 tax years, he paid no federal income taxes on approximately $254,332 in income he received, resulting in a federal tax loss of approximately $52,679.
ELLIOTT and CARTER are employed as nurses with the State of Connecticut’s Department of Mental Health and Addiction Services.
The indictments were returned under seal by a federal grand jury in New Haven on April 9. ELLIOTT appeared before U.S. Magistrate Judge Garfinkel in Bridgeport yesterday, and CARTER appeared before U.S. Magistrate Judge Smith in Hartford today. ELLIOTT entered a plea of not guilty. CARTER’s arraignment is scheduled for next week.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Susan Wines.
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[email protected]Two Lawyers and Office Worker Convicted of Immigration Fraud Offenses Following Jury Trial in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FENG LING LIU, VANESSA BANDRICH, and RUI YANG, were found guilty yesterday in Manhattan federal court of one count of conspiracy to commit immigration fraud. LIU, BANDRICH, and YANG, who were initially charged in December 2012, were convicted following a nineteen-day jury trial presided over by U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “As the jury found, Feng Ling Liu, Vanessa Bandrich, and Rui Yang assisted immigrants in obtaining asylum status under false pretenses, including by using concocted tales of persecution. These defendants will now join the twenty-seven others who have been convicted in connection with this sprawling immigration fraud scheme.”
According to the Indictment filed in Manhattan federal court, public court filings, and the evidence admitted at trial:
LIU, a lawyer, operated two law firms – the Law Offices of Feng Ling Liu and Moslemi and Associates, Inc. – both of which assisted aliens from China in obtaining asylum status through fraud. LIU and her employees profited by creating and submitting asylum applications containing false stories of persecution purportedly suffered by alien applicants. BANDRICH worked as a lawyer at one of LIU’s firms, Moslemi and Associates, Inc. In that capacity, she prepared certain clients to tell false stories of persecution in immigration court proceedings related to their asylum application. BANDRICH also opened a separate law firm, Bandrich and Associates, Inc., (“Bandrich Firm”) that assisted clients in obtaining asylum status through fraud. YANG was an office worker at the Bandrich Firm and helped the firm’s clients prepare their false asylum applications.
The defendants each face a maximum sentence of five years in prison on the count of conspiracy to commit immigration fraud. LIU, 48, of Manhattan, New York, is scheduled to be sentenced by Judge Abrams on July 25, 2014. BANDRICH, 34, of Manhattan, New York, is scheduled to be sentenced by Judge Abrams on July 31, 2014. YANG, 30, of Flushing, New York, is scheduled to be sentenced by Judge Abrams on August 1, 2014. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendants’ sentences will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The case is being handled by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Rebecca Mermelstein, Robert Boone and Patrick Egan are in charge of the prosecution.
Feng Ling Liu et al Indictment
Three Bridgestone Corp. Executives Indicted for Roles in Fixing <br /> Prices and Rigging Bids on Auto Parts Installed in U.S. CarsRead the Press Release
A Cleveland federal grand jury returned an indictment against one current executive and two former executives of Bridgestone Corp. for their roles in an international conspiracy to fix prices of automotive anti-vibration rubber parts sold in the United States and elsewhere, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Northern District of Ohio in Toledo, charges Yoshiyuki Tanaka, Yasuo Ryuto and Isao Yoshida, all Japanese nationals, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate sales of, to rig bids for, and to fix, raise and maintain the prices of anti-vibration rubber parts sold to Toyota Motor Corp., Nissan Motor Corp., Suzuki Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere.
“Today’s indictment again demonstrates that antitrust violations are not just corporate offenses but also crimes by individuals,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division will continue to vigorously prosecute executives who circumvent the law in order to maximize profits by harming consumers.”Tanaka was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including manager at Bridgestone and executive vice-president at Bridgestone’s U.S. subsidiary Bridgestone APM Co., from approximately 1991 through at least February 2011. He is currently manager of the anti-vibration rubber original equipment international planning section. Ryuto was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including general manager and director, from approximately 1991 through at least June 2008; he is no longer employed by the company. Yoshida was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including manager and general manager, from approximately 1997 through at least September 2008 ; he is no longer employed by the company.
The indictment alleges that Tanaka, Ryuto, Yoshida and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements regarding the sale of automotive anti-vibration rubber products to automakers in the United States and elsewhere. The indictment alleges that the conspiracy involved agreements affecting the Tacoma, Camry, Tundra, Sequoia, Corolla, Sienna, Venza and Highlander. According to the indictment, Tanaka participated in the conspiracy from at least as early as January 2004 until at least June 2008; Ryuto participated in the conspiracy from at least as early as April 2001 until at least May 29, 2008; and Yoshida participated in the conspiracy from at least as early as January 2001 until at least July 2008.
Bridgestone manufactures and sells a variety of automotive parts, including anti-vibration rubber parts, which are comprised primarily of rubber and metal, and are installed in suspension systems and engine mounts as well as other parts of an automobile. They are installed in automobiles for the purpose of reducing road and engine vibration. On Feb. 13, 2014, Bridgestone agreed to plead guilty and to pay a $425 million criminal fine for its role in the conspiracy.
To date, 32 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 26 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.29 billion in fines.
Each of the individuals is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.Today’s charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. These cases were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 216-522-1400.
Tennessee Husband and Wife Sentenced to 36 Months for Tax FraudRead the Press Release
James E. Beavers and Beverly S. Beavers of Knoxville, Tenn., were each sentenced to serve 36 months in prison followed by three years of supervised release, the Justice Department and Internal Revenue Service (IRS) announced today. James and Beverly Beavers were also each ordered to pay restitution in the amount of $591,123. On March 20, 2013, a jury sitting in Knoxville, Tenn., found the couple guilty of conspiracy to defraud the United States and filing false claims for tax refunds. They have been in custody since they were convicted.
Court documents and the evidence at trial showed that James Beavers held a Ph.D. in civil engineering and was employed as an engineering consultant. He was formerly employed as the director of an academic engineering center at the University of Tennessee. Beverly Beavers owned a small formalwear and jewelry store in Knoxville.
According to court documents and the evidence presented at trial, in June 2009, James and Beverly Beavers arranged to have a fraudulent 2008 tax return prepared by PMDD Services LLC, a tax return preparation firm that helped clients claim exorbitant tax refunds specifically intended to help the clients pay off their personal debts. The tax return falsely reported that their personal debts, including the amount of the Beavers’ mortgage and the limits on their credit cards, were actually income on which federal income tax was withheld. This fictitious income and tax withholding were reported to the IRS on false Forms 1099-OID, which were prepared by Penny Jones of PMDD Services based on information provided by James and Beverly Beavers. As a result of the fraudulently inflated income and withholding, the Beavers’ 2008 tax return claimed a fraudulent tax refund of over $591,000. Upon receiving the funds, James and Beverly Beavers paid off their home mortgage, then conveyed their newly unencumbered real estate to sham trusts in order to impede IRS efforts to collect the erroneously paid refund. They later filed false amended tax returns for the 2006 and 2007 tax years, also prepared by Jones, requesting fraudulent tax refunds of $193,056 and $202,625, respectively. Jones pleaded guilty to related tax crimes and was sentenced to 144 months in prison in January 2013.
Assistant Attorney General Kathryn Keneally of the Tax Division commended the efforts of special agents of IRS – Criminal Investigation who investigated the case and Trial Attorneys Jonathan Marx and Jed Silversmith of the Tax Division who prosecuted the case, with local assistance from the U.S. Attorney’s Office for the Eastern District of Tennessee.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Synthetic Drugs – Real Consequences Summit 2014Read the Press Release
ATLANTA - Synthetic drugs are a growing problem that threaten the health and safety of the younger population across Georgia. As these drugs — commonly marketed under nonthreatening labels such as “bath salts,” spice,” or “molly”— have increased in popularity, communities have struggled to understand what these substances are and the threats they present.
“Synthetic drugs pose a deadly danger for our young people who, in search of a ‘good time,’ choose to ignore the risks,” said United States Attorney Sally Quillian Yates. “Our ability to turn the tide on this growing problem is not just through prosecutions and convictions; it is through education as well. We are seeking the help of those who touch every part of a child’s life to help reinforce the message that synthetic drugs -- by whatever name they are called -- is not the way to go.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “The sale of synthetic drugs has become a growing problem locally, regionally and nationally. These drugs are made from a variety of dangerous chemical compounds that can be fatal upon one use. This educational summit is a proactive step in combatting the growing trend of synthetic drug abuse. Each stakeholder can contribute a positive course of action to combat this growing problem.”
Mistakenly perceived as legal alternatives to illicit drugs such as marijuana, ecstasy, and LSD, synthetic drugs also have the unfortunate street reputation of being safer to consume than traditional illegal drugs. In fact, the real consequences of abusing these drugs are far different. Consumption of synthetic drugs has been linked to multiple fatalities in Georgia alone. Moreover, many of the more popular substances have been linked with serious health problems including seizures, panic disorders, and kidney and liver failure, to name just a few. The effects are unpredictable, because the substances often contain a number of unknown drugs chemicals at varying potencies, so that the consumer has no idea what he or she is taking, and those who manufacture these substances constantly change their chemicals and formulas in an effort to stay hidden from law enforcement.To promote better understanding in combating this problem, the U.S. Attorney’s Office for the Northern District of Georgia, the Drug Enforcement Administration, the Georgia Bureau of Investigation, and the Georgia World Congress Center Department of Public Safety are conducting this summit to explore the abuse of synthetic drugs in Georgia. This one-day summit, happening April 15, 2014, features prominent speakers from law enforcement, public health, and drug abuse victims who seek solutions to these problems.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Surveyor in Maverick County Pleads Guilty in Connection with Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
Marcelo Alvarez, a 55-year-old surveyor and consultant from Eagle Pass, faces up to ten years in federal prison and full restitution to Maverick County after pleading guilty to a bribery charge in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse.
Appearing before United States District Judge Alia Moses this afternoon in Del Rio, Alvarez pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. According to court documents, between 2010 and 2012, Alvarez paid $100 to $200 on multiple occasions to Maverick County elected officials, including two county commissioners, for their support in securing county construction projects. Ultimately, Maverick County paid in excess of $800,000 to Amistad Consulting, a company which Alvarez was connected to, to perform engineering, project management and consulting services for the county. Alvarez, designated by Amistad Consulting as the Resident Project Representative, received payment for his services of approximately $300,000 between 2010 and 2012.Alvarez remains on bond pending sentencing scheduled for October 1, 2014.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorneys Michael Galdo and Bryan N. Reeves are prosecuting this case on behalf of the Government.
Statement from the Department of Justice CondemingRead the Press Release
ALBUQUERQUE – Last week the Department of Justice announced findings that the Albuquerque Police Department has systemic failures that have led to a pattern or practice of unconstitutional use of force, including deadly force. Although these problems are serious and run deep, we have the commitment of the City to work together to bring about meaningful reform within the Albuquerque Police Department.
THREATS OF VIOLENCE AGAINST POLICE OFFICERSWe have learned that fliers advocating violence against police officers are being disseminated in Albuquerque. The Justice Department condemns threats of violence against police officers, and encourages all sectors of the community to participate in the critical dialogue that will bring about the reform that will promote constitutional policing and will rebuild the community’s trust in its Police Department. The path to reform is through dialogue among the City, the Police and the many communities that make-up Albuquerque, and the negotiation and implementation of a court-enforceable agreement.
Individuals who wish to have input into developing the reforms or who have information relevant to the Justice Department’s investigation into the use of force by the Albuquerque Police Department are encouraged to contact us by email at [email protected] or by calling our toll free number, (855) 544-5134, which is available for both English and Spanish speakers.
Spruce Pine Attorney Sentenced to 27 Months for Filing False Tax ReturnsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Graham Mullen sentenced a Spruce Pine man, who was an attorney, engineer and appraiser, to 27 months in prison for making false statements on his tax returns, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Randy Alan Carpenter, 56, was also ordered to serve one year under court supervision and to pay $507,995 as restitution to IRS.
Joining U.S. Attorney Tompkins in making today’s announcement are Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service - Criminal Investigation Division (IRS-CI), John A Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) and Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation, Office of the Inspector General (FDIC-OIG).
According to court records and today’s sentencing hearing, Carpenter received over $1.2 million in professional fees in 2005 and 2006 from his work at a failed real estate development near Spruce Pine, N.C., known as the “Villages of Penland.” Carpenter pleaded guilty to the tax charges in May 2013. As a condition of his plea agreement, Carpenter was also ordered to cooperate with the IRS in filing amended tax returns. When announcing his sentence, Judge Mullen noted that although Carpenter’s sentencing was not intentionally set for April 15th, the court agreed with the prosecution’s argument that Carpenter’s sentence should be a general deterrent to those might be tempted to intentionally file false tax returns.
Carpenter will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled jointly the FBI, IRS and FDIC-OIG. The case is being prosecuted by Assistant United States Attorneys Michael E. Savage and Courtney Bumpers of the U.S. Attorney’s Office in Charlotte and Trial Attorney Gregory Bailey of the U.S. Department of Justice’s Criminal Tax Division.
Seven Charged in Alleged Stolen Identity Tax Refund Fraud SchemesRead the Press Release
PROVIDENCE, R.I. – Seven individuals allegedly involved in tax refund fraud schemes which used stolen and fraudulent identities to defraud the Internal Revenue Service of more than $1.6 million dollars have been charged in federal court in Providence, announced United States Attorney Peter F. Neronha. Four individuals have pleaded guilty and a fifth is expected to plead guilty next week. Two defendants are awaiting trial.
Government reports indicate that losses due to Stolen Identity Refund Fraud – commonly referred to as SIRF – totals in the billions of dollars. In the last year alone, the Department of Justice and U.S. Attorney’s offices have charged more than 880 defendants for their involvement in SIRF schemes. The IRS resolved and closed approximately 963,000 SIRF cases.
“The allegations in these cases are another stark reminder that in the digital age, it is easier than ever to commit fraud against the taxpayers both as a whole and individually. Combatting such criminal behavior requires constant vigilance – on the part of law enforcement and private citizens alike. Safeguarding personal information is a critical ingredient in defeating the kind of brazen schemes involved here,” commented United States Attorney Peter F. Neronha. “I want to thank HSI, the Secret Service, the IRS, and the Rhode Island State Police, who have been the leaders in the investigation of these types of sophisticated, computer related crimes, particularly in Rhode Island. They do this kind of work incredibly well.”
According to court documents and information presented to the court, in January 2013, Homeland Security Investigations (HSI) agents in Boston conducted a routine border search of Jairo Morales, 29, of Providence, who was flying in from the Dominican Republic. In a laptop computer agents allegedly identified evidence consistent with a tax refund fraud scheme.
Through additional investigation by IRS-Criminal Investigation (IRS-CI), U.S. Secret Service and HSI, evidence was developed that Morales and Julianna Martins, 45, of Providence, allegedly orchestrated a stolen identity tax refund scheme which resulted in the filing of false federal income tax returns using allegedly stolen personal identity information of hundreds of individuals from Puerto Rico and fictitious W-2 forms from various companies. Fraudulently obtained tax refund checks ranging from approximately $3,000 to $10,000 were sent to multiple Providence addresses allegedly under their control. Martins, Morales, Lucia Morales, 55, of Providence, and Casmiro Santos, 36, of Providence, and others allegedly deposited United States Treasury checks totaling in excess of $596,000 into accounts allegedly controlled by the defendants. Each defendant is criminally responsible for a subset of that amount to be determined by the court.
Additionally, it is alleged in court documents that Maria Paulino, 25, of Providence, a bank teller, assisted Martins in opening bank accounts using fraudulent identity information and negotiated checks on behalf of Morales, Martins, and their associates.
Julianna Martins and Jairo Morales have pleaded guilty to conspiracy, theft of government property and aggravated identity theft. At sentencing they face statutory penalties of up to 15 years in federal prison, with a mandatory minimum sentence of 2 years imprisonment; $500,000 in fines; 3 years supervised release; and restitution to the United States Treasury.
Lucia Morales and Maria Paulino have pleaded guilty to theft of government property. At sentencing they face statutory penalties of up to 10 years imprisonment; $250,000 fine; 3 years supervised release; and restitution to the United States Treasury.
According to a signed plea agreement filed with the court, Casmiro Santos has agreed to plead guilty to charges of theft of government property and aggravated identity theft. He is scheduled to be arraigned on April 21, 2014.
Julianna Martins, Jairo Morales, Lucia Morales and Maria Paulino are scheduled to be sentenced in U.S. District Court the week of June 23rd.
In a separate matter, according to court documents and information presented to the court, in January 2012, Richard Lara, 22, of Providence, and Julian Balbi, 22, of Providence, were arrested by Rhode Island State Police during a traffic stop. A search of their vehicle resulted in the discovery of approximately 87 United States treasury checks totaling approximately $596,000.
According to court documents, further investigation by the IRS-CI, U.S. Secret Service, and R.I. State Police developed evidence that Lara and Balbi allegedly orchestrated a stolen identity tax refund scheme with intended losses in excess of $1,000,000 by using stolen personal identity information of approximately 1,300 individuals.
An indictment was returned February 26, 2014, charging Lara and Balbi with conspiracy, theft of government property and aggravated identity theft. In convicted, they face statutory penalties of up to 15 years imprisonment, with a mandatory minimum sentence of 2 years imprisonment; $500,000 in fines; up to 3 years supervised release; and restitution to the United States Treasury. They have pleaded not guilty to the charges contained in the indictment and are awaiting trial.
An indictment and information are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]San Joaquin County Tax Preparer Pleads Guilty to Preparing Fraudulent Tax ReturnsRead the Press Release
FRESNO, Calif. —Sarad Chand, 62, of Ripon, pleaded guilty today to aiding and assisting in the preparation of a false income tax return, United States Attorney Benjamin B. Wagner announced. Chand also agreed to entry of a permanent injunction precluding him from preparing or filing federal tax returns for anyone other than himself.
According to court documents, Chand prepared tax returns from an office in Ripon under the name S. Chand Tax & Accounting Service Inc. He assisted his clients to obtain large tax refunds by falsifying deductions and credits on the returns. The false tax returns caused the government to lose $38,932 in tax revenues over a period of more than four years.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Mark J. McKeon and Megan Richards are prosecuting the case.
Chand is scheduled to be sentenced by Judge Lawrence J. O'Neill on June 16, 2014. Chand faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
San Antonio Businessmen Sentenced to Federal Prison for A Fraud and Tax Scheme Involving More Than $130 Million in Real Dollar LossesRead the Press Release
In San Antonio this morning, United States Chief District Judge Fred Biery handed down prison sentences to two individuals for their roles in what is believed to be the largest real dollar loss fraud and tax related case ever prosecuted in the Western District of Texas announced United States Attorney Robert Pitman, Acting FBI Special Agent in Charge Aaron C. Rouse and IRS-Criminal Investigation Special Agent in Charge Steve McCollough.
Larry Kimes, the manager of AccounTex Financial Services, LLC, was sentenced to 12 years in federal prison followed by three years of supervised release and ordered to pay $132 million restitution after pleading guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge last month.
Charles Pircher, manager of a series of Professional Employer Organizations (PEOs) based in San Antonio, including Service Professionals, was sentenced to 11 years in federal prison followed by three years of supervised release and ordered to pay $132 million restitution after pleading guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge in November 2013.
“The sentencing of so-called ‘white collar’ defendants to significant terms of imprisonment such as the judge imposed in this case today should send a strong message to those who concoct fraudulent schemes - schemes that result in real losses to real people,” stated United States Attorney Robert Pitman.
In February, three other individuals who also entered guilty pleas in connection with this fraudulent scheme were sentenced to federal prison by Judge Biery. John Bean, owner of Synergy Personnel, a Professional Employer Organization (PEO) based in San Antonio, as well as an agent, representative, officer, license holder and accountant of several San Antonio and Austin based PEOs, including Service Professionals; Pat Mire, owner and manager of several San Antonio-based PEOs, including Service Professionals; and, Mike Solis, an executive assistant at several San Antonio based PEOs, including Service Professionals, were sentenced to six years, three years and three years in federal prison, respectively.
By pleading guilty, the defendants admitted that between 2002 and 2008, they participated in a scheme in which they stole more than $130 Million from the clients of a series of PEOs operated by the defendants. The PEOs entered into staff leasing agreements with various client companies to manage the companies’ payroll and insurance programs. Kimes, Pircher and the other co-conspirators diverted to their own use and benefit clients’ monies that should have been paid for payroll taxes and insurance premiums.
“The defendants involved in this, the largest ever single criminal tax case in San Antonio's history, knowingly violated our country's Tax laws. They chose to ignore their responsibilities and live a lavish lifestyle on money belonging to their employees and to the U.S. Government. IRS Special Agents will continue to aggressively pursue these types of very serious tax crimes,” stated IRS-Criminal Investigation Special Agent in Charge Steve McCollough.
“Motivated by greed, the defendants perpetrated an extensive fraud scheme, designed to steal money from their clients and taxpayers over a number of years. The FBI will continue to work with our partners to identify, investigate and prosecute others, like the defendants, who seek unjust enrichment by victimizing others,” stated FBI Acting Special Agent in Charge Aaron C. Rouse.
This case was investigated by agents with the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Thomas J. McHugh prosecuted this case on behalf of the Government.
Rhode Island Man Pleads Guilty for Failing to Register as A Sex OffenderRead the Press Release
BOSTON – A Rhode Island man pleaded guilty today for failing to register as a sex offender last year.
Ryan Hathaway, 32, pleaded guilty before U.S. District Court Judge Rya W. Zobel to failure to register as a sex offender. In March 2014, Hathaway was indicted. Sentencing is scheduled for July 16, 2014.
In 2004, Hathaway pleaded guilty in Massachusetts state court to indecent assault and battery on a child under age 14. This conviction required him to register as a sex offender. In 2012, he was convicted in Massachusetts state court for failure to register as a sex offender, and was incarcerated. After being released in October 2013, Hathaway briefly stayed at a shelter in Boston. On November 5, he left the shelter and his GPS tracking bracelet was found on a street in Boston the following day. On Dec. 7, 2013, Hathaway was arrested in Pawtucket, R.I. Investigators later learned that Hathaway had been living in Rhode Island for about a month without registering as a sex offender.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal of the U. S. Marshals Service, District of Massachusetts, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Queens Man Pleads Guilty to Possession of Counterfeit $100 BillsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that O’Neal Walker, 33, of Queens, N.Y., pleaded guilty to possession of counterfeit bank notes before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of twenty years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that on September 22, 2013, New York State Troopers stopped a vehicle driven by the defendant on Interstate 390 in the town of Wayland in Steuben County. Walker was driving 102 mph in a 65 mph zone and had no valid driver’s license. Following the defendant’s arrest, troopers located $8,700 in $100 bank notes inside the car along with a financial ledger book. Inside the ledger were columns which showed dollar amounts and abbreviations for retail locations. The New York State Police contacted the United States Secret Service for investigative assistance.
Secret Service Agents determined that the 87 $100 bills recovered were actually sophisticated counterfeit bills, complete with water marks, color shifting ink, and embedded security strips. They further determined that the ledger notations were references to Home Depot, Lowes, Target, and Wal-Mart stores. As part of the investigation, Secret Service Agents reviewed store surveillance video from the dates and times of the transactions listed in the ledger. The defendant was identified on video at several area stores passing counterfeit $100 bank notes. Subsequent investigation determined that Walker had passed an additional $14,100 in counterfeit $100 bank notes within the Western District of New York. At the time the defendant passed the counterfeit bills here, he was on pre-trial release for similar conduct in the State of Ohio.
As part of the investigation, Secret Service Agents learned that Walker was also identified passing counterfeit $100 bank notes in several other states. Specifically, the defendant was identified passing $2,000 in counterfeit $100 bank notes in Ohio; $600 in counterfeit $100 bank notes in Massachusetts; $13,500 in counterfeit $100 bank notes in Syracuse, within the Northern District of New York; $19,700 in counterfeit $100 bank notes in Michigan; and $6,800 in counterfeit $100 bank notes in Arkansas. The total loss due to Walker’s actions was $65,300.The guilty plea is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast, and Investigators and Troopers of the New York State Police, under the direction of Superintendent Joseph A. D'Amico.
The defendant was originally released in January 2014, but was remanded to custody after violating conditions of his pre-trial release. Walker remains in federal custody until his sentencing which is scheduled for July 10, 2014 at 3:30 p.m. before Judge Geraci.President Obama Grants CommutationRead the Press Release
WASHINGTON, D.C – Today, President Barack Obama granted clemency to the following individual:
• Ceasar Huerta Cantu, also known as Cesar Huerta Cantu – Katy, Texas
Offenses: Conspiracy to possess with intent to distribute marijuana;
money laundering (Western District of Virginia)
Sentence: 180 months’ imprisonment (as amended), five years’ supervised release
(May 11, 2006)
Commutation Grant: Prison sentence commuted to 138 months’ imprisonmentPostal Employee Stole $9,697.63 from Two Cayuga County Post OfficesRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that JOHANNA KUHLMANN pled guilty Friday, April 11, 2014, to the felony offense of Theft of Government Property, in violation of 18 U.S.C. § 641, before the Hon. David N. Hurd in the United States District Court in Syracuse, New York. Sentencing for KUHLMANN is scheduled for August 8, 2014. As a result of the conviction, KUHLMANN is facing a term of imprisonment of up to ten years, supervised release of up to three years, a fine of up to $250,000, and a special assessment of $100.
KUHLMANN admitted that she took books of stamp from the Weedsport Post Office and converted them to cash at the Port Byron Post Office. KUHLMANN also admitted that she received payments for post office box rental fees but did not enter them into the United States Postal Service deposits. In total, KULHMANN admitted that she stole and converted to her own use $9,697.63, of cash which belonged to the United States Postal Service, between October 1, 2008 and January 9, 2011.
KUHLMANN’s prosecution is the result of an investigation by the United States Postal Service Office of Inspector General. The prosecution was handled in the United States Attorney’s Office by Assistant U.S. Attorney Tamara B. Thomson.
Pocatello Man Pleads Guilty to Failing to Register as A Sex OffenderRead the Press Release
POCATELLO – Jeramie James McGuire, 35, of Pocatello, Idaho, pleaded guilty yesterday in United States District Court to failure to register as a sex offender, U.S. Attorney Wendy J. Olson announced. He was indicted on November 26, 2013.
In October, 2013, Bannock County Sheriff’s detectives received information that McGuire was living at a home in Pocatello. An investigation showed that McGuire had been convicted of Felony Rape in the Third Degree in 1997 in Baker County, Oregon, and that he was required to register as a sex offender. Records showed that McGuire had previously registered as a sex offender in Wyoming, but had been residing at the Pocatello house and working in Pocatello without registering as a sex offender in Bannock County. Idaho law required McGuire to register within two days after moving to Idaho to live or work.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and from five years to lifetime supervised release.
Sentencing is set for July 7, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by the Bannock County Sheriff’s Department and the United States Marshals Service.