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27 May 2014
Leading Member of the International Cybercriminal Group “Lulzsec” Sentenced in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HECTOR MONSEGUR, a/k/a “Sabu,” formerly a leading member of a group of sophisticated computer hackers known as “LulzSec,” was sentenced today in Manhattan federal court to time served and one year of supervised release for his participation in computer hacking activity that victimized media outlets, government agencies and contractors, and private corporations around the world by hacking into, disabling, and at times exfiltrating data from the victims’ computer systems. MONSEGUR pled guilty in August 2011 to computer hacking conspiracy, computer hacking, computer hacking in furtherance of fraud, conspiracy to commit access device fraud, conspiracy to commit bank fraud, and aggravated identity theft pursuant to a cooperation agreement with the Government. U.S. District Judge Loretta A. Preska imposed today’s sentence.
According to the criminal Information and related filings in Manhattan federal court, and statements made at MONSEGUR’s guilty plea:
Hacks by Anonymous, Internet Feds, and LulzSec
Since at least 2008, Anonymous has been a loose confederation of computer hackers and others. MONSEGUR and other members of Anonymous, including Jeremy Hammond, took responsibility for a number of cyber attacks between December 2010 and June 2011, including distributed denial of service (“DDoS”) attacks against the websites of Visa, MasterCard, and PayPal, as retaliation for the refusal of these companies to process donations to Wikileaks, as well as hacks or DDoS attacks on foreign government computer systems.
Between December 2010 and May 2011, members of the Internet Feds computer hacking collective similarly waged a deliberate campaign of online destruction, intimidation, and criminality. Members of Internet Feds engaged in a series of cyber attacks that included breaking into computer systems, stealing confidential information, publicly disclosing stolen confidential information, hijacking victims’ email and Twitter accounts, and defacing victims’ Internet websites. Specifically, MONSEGUR and other members of Internet Feds, including Ryan Ackroyd, a/k/a “kayla,” a/k/a “lol,” a/k/a “lolspoon,” Jake Davis, a/k/a “topiary,” a/k/a “atopiary,” Darren Martyn, a/k/a “pwnsauce,” a/k/a “raepsauce,” a/k/a “networkkitten,” and Donncha O’Cearrbhail, a/k/a “palladium,” conspired to commit computer hacks including the hack of the website of Fine Gael, a political party in Ireland; the hack of computer systems used by security firms HBGary, Inc., and its affiliate HBGary Federal, LLC, from which Internet Feds stole confidential data pertaining to 80,000 user accounts; and the hack of computer systems used by Fox Broadcasting Company, from which Internet Feds stole confidential data relating to more than 70,000 potential contestants on “X-Factor,” a Fox television show.
In May 2011, following the publicity that they had generated as a result of their hacks, including those of Fine Gael and HBGary, MONSEGUR, along with Ackroyd, Davis, and Martyn, formed and became the principal members of a new hacking group called “Lulz Security” or “LulzSec.” Like Internet Feds, LulzSec undertook a campaign of malicious cyber assaults on the websites and computer systems of business and governmental entities in the United States and throughout the world. Specifically, MONSEGUR and his co-conspirators, as members of LulzSec, conspired to commit computer hacks including the hacks of computer systems used by the Public Broadcasting System, in retaliation for what LulzSec perceived to be unfavorable news coverage in an episode of the news program “Frontline”; Sony Pictures Entertainment (“Sony”), in which LulzSec stole confidential data concerning approximately 100,000 users of Sony’s website; and Bethesda Softworks (“Bethesda”), a video game company based in Maryland, in which LulzSec stole confidential information for approximately 200,000 users of Bethesda’s website.
Among other things, at law enforcement direction, Monsegur engaged in proactive cooperation that enabled the Government to identify, locate, and arrest eight of his co-conspirators, including Hammond. In addition, as a direct result of Monsegur's cooperation, the Government was able to prevent or mitigate over 300 cyberattacks that were being planned or carried out by others, including on the computer servers of U.S. and foreign governments, international intergovernmental organizations, and private corporations. Monsegur also provided information on vulnerabilities in certain critical infrastructure, including at a U.S. water utility, that enabled law enforcement to secure that infrastructure.
In pronouncing the sentence, Judge Preska said Monsegur’s cooperation was “truly extraordinary.” She also said, “The fact that Monsegur immediately chose to cooperate and went back online . . . allowed the extraordinary cooperation.”
In addition, at today’s proceeding, Judge Preska ordered MONSEGUR, 30, of New York, New York, to pay a $1,200 special assessment fee. MONSEGUR previously served seven months in prison in connection with the crimes to which he pled guilty.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The investigation was initiated and led by the FBI, and its New York Cyber Crime Task Force, which is a federal, state, and local law enforcement task force combating cybercrime; with assistance from the PCeU, a unit of New Scotland Yard's Specialist Crime Directorate, SCD6; the Garda; and the U.S. Attorneys’ Offices for the Eastern District of California, the Central District of California, the Northern District of Georgia, and the Eastern District of Virginia; as well as the Department of Justice Criminal Division’s Office of International Affairs and its Computer Crime and Intellectual Property Section.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney James Pastore is in charge of the prosecution.
Kansas Woman, Man Charged with Armed Robbery at Excelsior Springs BankRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., woman and man were charged in federal court today with the armed robbery of an Excelsior Springs, Mo., bank.
Virginia Lynn Spencer, 28, and Steven Dale Robinson, 22, both of Kansas City, Kan., were charged in a two-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Spencer and Robinson remain in federal custody pending a detention hearing.
Spencer and Robinson are each charged in one count of aiding and abetting others to steal $11,883 at gunpoint from Bank Midwest, 201 N. Jesse James Rd., Excelsior Springs, on Friday, May 23, 2014. Spencer is also charged with one count of aiding and abetting another person to use a firearm during and in relation to a crime of violence.
According to an affidavit filed in support of the federal criminal complaint, Spencer entered the bank at about 5:30 p.m. with another person, who has not been charged. That person stood in the lobby and pointed a .32-caliber revolver in the air with his finger on the trigger. They ordered bank employees to sit on the floor, the affidavit says, then Spencer dove on top of the middle lobby teller counter and began opening the tellers drawers in search of money. Spencer pulled herself over the counter and went behind the teller counter, the affidavit says, before jumping back over the counter while holding a bag.
Both robbers ran from the bank, according to the affidavit, with Spencer saying, “Have a nice day” on her way out.
A bank customer, who had just conducted a transaction at the ATM with her three children in the vehicle, drove around toward the front of the bank to leave the parking lot. She saw Robinson sitting in the driver’s seat of a Grand Marquis that was backed in near the bank’s front doors at an angle, the affidavit says. The two robbers ran out of the bank’s front doors and got into the vehicle. The vehicle quickly left the Bank Midwest parking lot, narrowly missing the customer’s vehicle. She immediately called 911 on her cell phone and reported the vehicle’s direction of travel.
Clay County Sheriff’s deputies saw the vehicle near 69 Highway and Lightburn Road. A pursuit followed, and the robbers’ vehicle crashed near Kings Highway and Dam Road in Liberty, Mo. Spencer and Robinson were arrested. A third person remains hospitalized as a result of the crash.
Law enforcement officers found a bag containing $11,883 on the front floorboard of the vehicle.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Justin Davids. It was investigated by the FBI, the Clay County, Mo., Sheriff’s Department and the Excelsior Springs, Mo., Police Department.Jury Finds New Jersey Man Conspired to Distribute 1,500+ Bricks of Heroin in Pittsburgh AreaRead the Press Release
PITTSBURGH - After deliberating for three hours on May 23, a federal jury of six men and six women found Rafael A. Cabrera, a/k/a Rubio, guilty of one count of conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin, United States Attorney David J. Hickton announced today.
Rafael Cabrera, 35, of Passaic, New Jersey was tried before United States District Judge Mark R. Hornak in Pittsburgh, Pa.
According to Assistant United States Attorney Eric S. Rosen, who prosecuted the case along with Special Assistant United States Attorney Jake Pugh, the evidence presented at trial established that from August 2012 to Jan. 10, 2013, Cabrera, who lives in New Jersey, brought large shipments of heroin to a co-conspirator at highway rest stops in Carlisle, Pa. Upon receipt of the heroin, the co-conspirator brought the heroin back to Pittsburgh, where it was sold to local drug dealers. The proceeds from these drug sales were then funneled back to Cabrera in New Jersey after the heroin was distributed. In total, the Government presented evidence that Cabrera delivered more than 1,500 bricks of heroin to his co- conspirator in Carlisle. These heroin bricks, each containing between one and two grams of heroin, have a street value of more than $300,000.
Judge Hornak has not yet set a date for sentencing. As Cabrera has a prior felony drug distribution conviction, the law provides for a total sentence of up to life in prison, a fine of $8,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Cabrera’s detention.
The Federal Bureau of Investigation, as assisted by the City of Pittsburgh Police and the Pennsylvania State Police, conducted the investigation that led to the prosecution of Rafael Cabrera.
Jamaican DJ Arrested in Florida in Connection with North Dakota Telemarketing Lottery Scam; 26 Individuals Currently IndictedRead the Press Release
BISMARCK- A prominent Jamaican disc jockey has been arrested entering the United States in Hollywood, Florida, following his indictment by a federal grand jury in North Dakota for telemarketing fraud conspiracy. The Indictment charges Deon-ville Antonio O’Hara, aka ZJ Wah Wa, of Kingston, Jamaica, with participating in an international fraudulent lottery/sweepstakes scheme. The United States Attorney’s Office today announced the unsealing of the amended Indictment, which names 26 individuals who are alleged to have participated in the scam.
In Bismarck, U.S. Attorney Timothy Purdon said, “Law enforcement has done an outstanding job unravelling the complex allegations in this case. We unsealed the Indictment in order to be able to again warn North Dakotans that, if someone contacts you over the telephone telling you that you have won a lottery that you did not enter, hang up the telephone because it’s a scam.” Purdon continued, “It is a long way from Jamaica to North Dakota; however, as long as there are allegations that fraudsters are targeting our citizens, the Federal Bureau of Investigation and the U.S. Postal Inspection Service will continue to pursue the wrongdoers, wherever they may be.”
O’Hara was arrested on allegations that he and his co-conspirators ran a lottery scam in Jamaica that fraudulently induced elderly victims throughout the United States to send millions of dollars to them to cover “fees” for lottery winnings that victims had not in fact won. O’Hara is alleged to have acted as a money courier who would travel to the United States to pick up victim monies and transport it to Jamaica. According to the Indictment, upon his return to Jamaica from the United States in November 2013, O’Hara was stopped by Jamaican Custom officials at Sangster International Airport with $105,000 in U.S. Currency in his possession; the cash is alleged to be proceeds of the lottery scam.
O’Hara has been charged with conspiracy to commit mail and wire fraud, wire fraud, and money laundering conspiracy. If convicted, he faces a statutory maximum sentence of 30 years per count, a possible fine, mandatory restitution, and possible forfeiture of property.
As of this arrest, the Department of Justice has now charged the following individuals in connection with the scheme: Lavrick Willocks, 25, of Jamaica
Mario Hines, aka Buju Ramos, 20, of Jamaica
Gregory Gooden, 32, of Jamaica
Gareth Billings, 25, of Jamaica
Akil Gray, 23, of Jamaica
Dario Palmer, aka Innocent Palmer, 22, of Jamaica
Mikael Omarr Gillette, 24, of Miramar, Florida
Shannon O’Connor, 30, of Deerfield Beach, Florida
Christina Renee Hogarth, 25, of Pembroke Pines, Florida
Kimberly Carlo-Jean Hudson, 23, of Jamaica
Xanu Ann Morgan, 21, of Jamaica
Sherlet Anetta Love, 39, of Jamaica
Jason Joseph Jahalal, 24, of Jamaica
Kazrae Gray, age unknown, of Jamaica
Dahlia Elaine Hunter, 49, of Jamaica
Sanjay Williams, 25, of Jamaica
Samantha Brown, 28, of Palm Desert, California
James Hayes Simpson, 72, of Owensboro, Kentucky
Tristan Fisher, 27, of Jamaica
Ricardo Augustus Bryan, 32, of North Lauderdale, Florida
O’Neil Brown, 30, of Jamaica
AlrickMcLeod, aka Birdman, aka Z-Bird, 28, of Jamaica
Natalie Dougherty, 33, of Florence, South Carolina
Lindsay Mattig, 20, of Los Angeles, California
Charles Calvin Bauder, 54, of Jefferson, Texas
Deon-Ville Antonio O’Hara, 24, of JamaicaPurdon singled out the North Dakota office of the Federal Bureau of Investigation (FBI), the U.S. Postal Inspection Service (USPIS) in Florida, and the North Dakota Attorney General’s Consumer Protection and Antitrust Division (CPAT) for special recognition of their tireless efforts in this ongoing investigation and also thanked a number of other participating law enforcement offices in North Dakota and throughout the world, including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); United States Marshals Service (USMS); North Dakota Bureau of Criminal Investigation (NDBCI); Harvey, North Dakota, Police Department; Iberia Parish, Louisiana, Sheriff; Placer County, California, Sheriff; Charleston County, South Carolina, Sheriff; Pembroke Pines, Florida, Police Department; Jamaican Operations Linked to Telemarketing (JOLT) Task Force; Jamaican Constabulary Force (JCF); and, JCF Lottery Scam Task Force (LSTF).
Purdon stressed that an Indictment or Complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt.
An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Illinois Hospice Executive, Three Former Employees and Company Indicted for Allegedly Falsely Elevating Level of Patients’ CareRead the Press Release
CHICAGO — An owner and three former employees of an Illinois hospice company, as well as the company itself, were indicted on federal health care fraud charges for allegedly engaging in an extensive scheme to obtain higher Medicare and Medicaid payments by fraudulently elevating the level of hospice care for patients. In many instances, the level of hospice care allegedly exceeded what was medically necessary or actually provided, including for some patients who did not have terminal illnesses or who were enrolled far longer than the required life expectancy of six months or less.
One defendant, SETH GILLMAN, 45, of Lincolnwood, an attorney and the coadministrator and co-owner of Passages Hospice, LLC, which was based in Lisle and has suspended operations, was initially charged in a criminal complaint when he was arrested in January.
Gillman, together with three new individual defendants and Passages Hospice, were charged in an 18-count indictment returned by a federal grand jury on Thursday.
Gillman, Passages, and GWEN HILSABECK, 47, of Pontiac, Ill., who served as coadministrator of Passages, were each charged with 16 counts of health care fraud and one count of conspiracy to obstruct a federal audit. Hilsabeck was also charged with one count of making false statements regarding a health care benefit program in a patient’s initial plan of care.
Also indicted were CARMEN VELEZ, 35, of Palatine, who served as Passages’ director of nurses for the Chicago region and director of clinical services, and ANGELA ARMENTA, 34, of Wheeling, who served as Passages’ director of certified nursing assistants for the Chicago region. They were charged with four counts each of health care fraud.
All four individual defendants and Passages are scheduled to be arraigned on June 2 in U.S. District Court in Chicago.
According to court documents, Passages did not have its own inpatient facility, but instead deployed nurses to visit hospice patients in nursing homes and private residences. Between August 2008 and January 2012, Passages received more than $90 million in Medicare payments for hospice services, including more than $20 million billed as general inpatient services.
The indictment alleges that between August 2008 and January 2012, Gillman and the other defendants caused Passages to submit false claims to Medicare and Medicaid for medically unnecessary hospice care for patients who were not terminally ill and did not qualify for general inpatient care.
Gillman, Hilsabeck, and Passages allegedly paid bonuses to nursing directors and certified nursing assistant directors, including Velez and Armenta, to increase the number of patients on general inpatient care. In addition, they offered incentives, such as payments to nursing homes based on the number of patients on general inpatient care to increase Passages’ patient census, the indictment alleges.
In August and September 2009, Gillman, Hilsabeck, Passages, and Velez, allegedly conspired to obstruct a federal audit by agreeing to alter patient files that had been requested by TrustSolutions, which contracted with the Centers for Medicare and Medicaid Services to audit providers for fraud and abuse.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Lamont Pugh III, Special Agent-in-Charge of the Chicago Regional Office of the HHS-OIG; and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois Attorney General’s Office is also participating in the investigation.
The government is being represented by Assistant U.S. Attorney Stephen C. Lee.
Each count of health care fraud carries a maximum penalty of 10 years in prison and a $250,000 fine, while conspiracy to obstruct a federal audit and making false statements regarding a health care benefit program each carry a maximum sentence of five years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The Medicare Fraud Strike Force began operating in Chicago in February 2011, and consists of agents from the FBI and HHS-OIG, working together with prosecutors from the U.S. Attorney’s Office and the Justice Department’s Fraud Section. The strike force is are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Scores of defendants have been charged locally in health care fraud cases since the strike force began operating in Chicago.
To report health care fraud to learn more about the Health Care Fraud Prevention & Enforcement Action Team (HEAT), go to: StopMedicareFraud.gov.
Indictment
Hospice Owner Sentenced to More Than 14 Years for Health Care Fraud SchemeRead the Press Release
PHILADELPHIA – Matthew Kolodesh, a/k/a “Matvei Kolodech,” 52, of Churchville, PA, was sentenced May 23, 2014 to 176 months in prison and ordered to pay $16.2 million in restitution to Medicare and $16.2 million in a forfeiture money judgment for orchestrating a scheme to defraud Medicare through his home hospice business, among other crimes, announced United States Attorney Zane David Memeger.
In October 2013, following a four week jury trial, a federal jury found Kolodesh guilty of conspiracy to commit health care fraud, 21 counts of health care fraud, 11 counts of money laundering, and two counts of mail fraud. From 2003 to 2008, Kolodesh’s business, Home Care Hospice, Inc. (“HCH”), located on Grant Avenue in NE Philadelphia, submitted false claims to Medicare totaling approximately $16.2 million for patients that were not eligible for hospice services, and for patients that never received the level of hospice services billed by HCH. Ineligible patients were patients who were not terminally ill and patients who were on service for more than six months.The scheme was successful because nurses and other staff participated in a massive fraud that involved altering patient records to make patients appear eligible for hospice services, when in reality they were not. HCH even tricked Medicare auditors. At the direction of Kolodesh, and co-owner and co-conspirator Alex Pugman, who was the Director of HCH, HCH nurses and supervisory staff routinely “fixed” patient files and re-wrote nursing documentation to make patients appear sicker “on paper,” by showing decline in medical condition through false entries for infections, fever, and weight loss, among other things. Old records were destroyed. The staff was also paid to falsely document 24 hour periods of high cost, intensive hospice care than was actually provided to the patient.
In order to buildup patient enrollment, Kolodesh and Pugman also paid health care professionals, including doctors, for referring patients to HCH, even when those patients were not eligible or appropriate for hospice services. In an effort to mask the kickback scheme, HCH fraudulently represented that some of those health care professionals were paid for servicesas medical directors, advisors, or hospice physicians.
“This massive fraud on a critical federal program costs taxpayers dearly,” said United States Attorney Zane David Memeger. “This sentence makes clear that the justice system will punish severely those criminals who engage in this type of fraud and abuse. We will continue to work diligently with our federal partners to bring to justice those who defraud the government and deprive federal programs of valuable tax dollars.”
“Medicare is a crucial component of our nation's healthcare system,” said FBI Special Agent-in-Charge Edward J. Hanko. “This sentence sends a clear message to anyone looking to game that system and steal taxpayers’ money: we will catch you, and we will put you away.”
“Kolodesh’s 14 year prison sentence is a clear message to those stealing from Medicare,” said Nick DiGiulio, Special Agent in Charge for the Inspector General’s Office of the U.S. Department of Health and Human Services in Philadelphia. “We will keep working with our partners to protect our health care system from fraud, waste, and abuse and to send thieves to prison.”
Kolodesh siphoned $7.77 million dollars from HCH’s bank account for his own personal enrichment. His spouse was set up as a sham CEO of the company and received millions of dollars in salary draws and bonuses. Kolodesh also used funds for extensive renovations to his mansion, travel expenses for his family and friends, college tuition for his son, and a luxury automobile. He siphoned substantial sums of cash from the HCH operating account through cash kickback arrangements with various HCH vendors using a system of phony and inflated invoicing, and through a charitable donation scam arranged with a local synagogue in which he was a member.
The mail fraud convictions stemmed from another scam orchestrated by Kolodesh which involved the Philadelphia Development Corporation (PIDC). In 2005, Kolodesh and Pugman applied for a low-interest loan worth $2.5 million with PIDC, a program designed to stimulate business investment and create jobs in the city of Philadelphia. The loan money was to be used to acquire and renovate a property for the business and to create 50 bona fide jobs in Philadelphia at 2801 Grant Avenue, the site of HCH. However, between August 2005 and July 2009, the job quota was not being met. To prevent default on the loan, Kolodesh set up a sham office at the Grant Avenue location purportedly for Community Home Health (“CHH”), his Bucks County health care business. Kolodesh falsely identified 73 CHH employees as working at that office location on Grant Avenue who, in fact, did not work there.
The case was investigated by the Federal Bureau of Investigation and the Department of Health and Human Services, Office of Inspector General. It was prosecuted by Assistant United States Attorney Suzanne B. Ercole and Trial Attorney Margaret Vierbuchen of the Organized Crime and Gang Section in the Justice Department’s Criminal Division.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Heroin Addict Pleads Guilty to Illegal Gun PossessionRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced that John Clark Schlotter, 30, originally from Weirton, West Virginia, pleaded guilty today in federal court in Huntington to unlawful possession of a firearm by a drug addict.
In January of 2014, Schlotter was in possession of two stolen guns at his home on First Avenue Rear in Huntington. Schlotter was holding the guns for a known heroin dealer who had received them in payment of a heroin debt. Schlotter was holding the guns for the heroin dealer in exchange for heroin for his personal use.Chief Judge Robert C. Chambers set the sentencing for September 2, 2014.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Head of Newman Drug Ring Pleads Guilty in HuntingtonRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced that Kenneth Dewitt Newman, also known as “K-Kutta,” 32, of Huntington pleaded guilty today in federal court in Huntington to possession with intent to distribute cocaine, oxycodone, heroin, MDMA (commonly known as Ecstasy) and marijuana. Newman, his brother, George Antonio Newman, their mother, Darlene Newman, and 12 others were indicted for their various roles in the drug distribution conspiracy. Newman and the others sold various types of controlled substances from his home at 1814 Artisan Avenue in Huntington and in the surrounding area from at least 2010 through January of 2014. In January of 2014, agents with the Drug Enforcement Administration conducted a search of Newman’s home and seized cocaine, oxycodone, heroin, MDMA and marijuana.
The charges against Newman and his associates arose out of a long term investigation led by the Drug Enforcement Administration, the Metropolitan Drug Enforcement Network Team, and the Huntington Police Department. George Newman, Ariell Varney, William Isiah Petties, Kamel Burris, and Brandon Appleton have all pleaded guilty to various charges arising from the Newman investigation. Other defendants are awaiting trial currently set for the end of July. Newman faces up to 20 years imprisonment and a $1 million fine when he is sentenced on August 25, 2014.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Head of Annandale Settlement Company Pleads Guilty to over $2 Million Short Sale Mortgage FraudRead the Press Release
ALEXANDRIA, Va. – Jose Marinay, 52, of Annandale, Virginia, pleaded guilty today to conspiracy to commit wire fraud for his involvement in a short sale mortgage fraud conspiracy.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge, Washington D.C. Field Office, IRS-Criminal Investigation, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
Marinay was indicted on April 15, 2014 by a federal grand jury on multiple charges, including conspiracy to commit wire fraud. Marinay faces a maximum penalty of 20 years in prison when he is sentenced on Sept.26, 2014.
According to court documents, Marinay operated a settlement company in Annandale named Virginia Smart Choice Settlements (which is now SCS Title & Escrow). Marinay helped prepare settlement statements that contained false information relating to liens, realtor commissions, title search fees, attorneys’ fees, title insurance, recording fees and taxes. Marinay caused the settlement statements to be sent to mortgage lenders, and in some instances, he shredded the statements to conceal evidence of the fraudulent transactions.
According to the statement of facts filed with Marinay’s plea agreement, a co-conspirator used the settlement statements to fraudulently induce mortgage lenders to execute short sales—real estate transactions in which the mortgage lender agrees to accept a price less than the amount owed on the property—on at least seven occasions. Immediately after the short sale, the co-conspirator sold the property to a new buyer in violation of representations and agreements made with the short sale mortgage lender. As a result of this scheme, the affected financial institutions suffered losses of over $2 million.
This case was investigated by theFBI’s Washington Field Office and IRS-Criminal Investigation. Assistant U.S. Attorney Uzo Asonye and Trial Attorney Todd Ellinwood of the Justice Department’s Tax Division are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Hartford Couple Sentenced to Prison for Operating Identity Theft and Credit Card Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that two Hartford residents were sentenced today in Hartford federal court for operating an identity theft and credit card fraud scheme. U.S. District Judge Michael P. Shea sentenced JONATHAN PRESTON, 23, to 46 months of imprisonment, and his wife, LUMI NUNEZ, 34, to 30 months of imprisonment. Both defendants were ordered to serve three years of supervised release after they are released from prison.
According to court documents and statements made in court, PRESTON and NUNEZ used the Internet and other sources to obtain personal identifying information of several prominent individuals, including entertainers and professional athletes, and used that information to pose as their victims to gain access to the victims’ credit card accounts. Since approximately 2010, PRESTON and NUNEZ used the credit card accounts to make more than $500,000 in unauthorized purchases and cash withdrawals. The defendants used much of the stolen money to purchase vehicles and jewelry, and to gamble at casinos.
PRESTON and NUNEZ have been detained since their arrests on November 7, 2013. In February 2014, they each pleaded guilty to one count of conspiracy to commit wire fraud.
Judge Shea scheduled a restitution hearing for August 25, 2014.
This investigation was conducted by the U.S. Secret Service, Hartford Police Department and Connecticut Financial Crimes Task Force. The Task Force includes members of the U.S. Secret Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police, and the Greenwich, Hartford, Monroe, Stamford, Shelton, Stratford and Waterford Police Departments.
The case was prosecuted by Assistant U.S. Attorneys Edward Chang and Paul McConnell.
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(203) 821-3722 [email protected]Gower Man Indicted for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Gower, Mo., man has been indicted by a federal grand jury for possessing child pornography and attempting to receive child pornography over the Internet.
William D. Everett, 43, of Gower, was charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo. That indictment was unsealed and made public upon Everett’s arrest and initial court appearance on Friday, May 23, 2014.
Everett is charged with two counts of attempting to receive child pornography over the Internet and one count of possessing child pornography.
The federal indictment contains a forfeiture allegation, which would require Everett to forfeit to the government two desktop computers and two computer hard drives that were allegedly used to commit the offenses.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Gower, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Gambino Family Adminstration Member Bartolomeo Vernace Sentenced to Life ImprisonmentRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Bartolomeo Vernace, a member of the administration of the Gambino organized crime family of La Cosa Nostra (the “Gambino family”), was sentenced to life imprisonment without parole plus ten years. On April 17, 2013, following a five-week jury trial before the Hon. Sandra L. Townes, Vernace was found guilty of a racketeering conspiracy spanning 1978 through 2011. The jury found that Vernace participated in all nine racketeering acts alleged as part of the conspiracy, including the 1981 double homicide of Richard Godkin and John D’Agnese, heroin trafficking, robbery, loansharking, and illegal gambling.
The sentence was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI).
“For more than four decades, the defendant dedicated his life to committing crimes for the mafia. He rose through the ranks to become a powerful Gambino family leader by making money from crime and committing brutal acts of violence, including the 1981 murders of two innocent bar owners over a spilled drink. Though they were taken from their families long ago, Richard Godkin and John D’Agnese – two businessmen who also ran the local Boys’ Club – have not been forgotten,” stated United States Attorney Lynch. “We hope the victims’ families are able to take some measure of comfort from the fact that, with this life sentence, one of the killers has now been brought to justice.” Ms. Lynch expressed her grateful appreciation to the FBI, the agency that led the government’s investigation.
“After more than 33 years evading justice, Bartolomeo “Bobby Glasses” Vernace can hide no more. Vernace made a life of being a key player in the Gambino crime family where his activities led to his convictions for heroin trafficking, robbery, loansharking, gambling, firearms, as well the vicious double murder. Today’s life sentence ensures the rest of Bobby Glasses’s life will only be seen inside of a federal facility,” stated FBI Assistant Director-in-Charge Venizelos.
The evidence at trial established that Vernace, known by various aliases including “Bobby Glasses,” had a long career in the mafia that began in the early 1970s and culminated in his rise to the rank of a captain who served on the three-member ruling panel overseeing the Gambino family. Vernace was arrested on January 20, 2011, as part of a national sweep of almost 100 members and associates of organized crime led by the U.S. Department of Justice and Federal Bureau of Investigation.
Among the crimes he committed for the mafia, Vernace, together with two Gambino family associates, murdered Richard Godkin and John D’Agnese in the Shamrock Bar in the Woodhaven neighborhood of Queens on April 11, 1981, after a dispute arose between a Gambino family associate and others in the bar over a spilled drink. The associate left the bar and picked up Vernace and a third accomplice at a nearby social club. A short time later, the three men entered the bar and gunned down Godkin and D’Agnese – the owners of the bar – as the bar’s patrons fled for cover.
In the weeks after the murders, Vernace went into hiding. He did not reemerge until years later when, having successfully avoided state charges for the murders, Vernace returned to Queens and to an active role in the Gambino family. Over the next two decades, his power within the mafia grew, as he operated a large and profitable crew from a café on Cooper Avenue in the Glendale neighborhood of Queens.
In 1998, Vernace was charged in Queens County Supreme Court with the Godkin and D’Agnese murders, but was acquitted after trial in 2002. During testimony in the federal trial in 2013, an eyewitness to the murders testified that he had lied during the state trial about Vernace’s role in the murders out of fear of retribution. The eyewitness testified in the federal case that he recognized all three assailants but that he had been afraid to testify against them because, in his words, “two men were dead over a spilled drink. I think that was reason enough to be afraid.”
The government’s case was prosecuted by Assistant United States Attorneys Evan M. Norris, Amir H. Toossi, M. Kristin Mace, and Claire S. Kedeshian.
The Defendant:
BARTOLOMEO VERNACE
Age: 65
E.D.N.Y. Docket No. 11-CR-005 (SLT)
Former CFO of Emporia Company Sentenced for Embezzling $265,927Read the Press Release
TOPEKA, KAN. - The former chief financial officer for a manufacturing firm in Emporia was sentenced Tuesday to four months home confinement for embezzling more than $265,927 from the company, U.S. Attorney Barry Grissom said. She also was ordered to pay full restitution.
Sandra Moore, 58, Emporia, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted the crime occurred beginning in 2008 while she was CFO of Sauder Custom Fabrication, Inc., in Emporia, Kan.
She devised a variety of schemes to divert money from her employer’s accounts to her own including:- Making unauthorized transfers from the company’s disbursement account to her personal account at ESB Financial in Emporia.
- Issuing unauthorized checks and depositing them into her personal account.
- Issuing unauthorized checks to repay loans she obtained from her 401K account.
Using those methods, she embezzled a total of $265,927 from the company.
Grissom commended the FBI and Assistant U.S. Attorney Rich Hathaway for their work on the case.Florida Man Pleads Guilty to Filing False Claim with Internal Revenue Service for Tax RefundRead the Press Release
WASHINGTON – Bradley Bowman, a resident of Lighthouse Point, Florida, pleaded guilty to one count of filing a false claim for a tax refund with the Internal Revenue Service (IRS), Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Wifredo Ferrer for the Southern District of Florida announced today. Bowman was indicted on March 25, 2014.
According to court documents, in 2009, Bowman submitted to the IRS a false individual income false tax return for tax year 2005 that fraudulently claimed a refund of $299,024. Bowman engaged Penny Jones, who is currently serving a 12 year sentence in a related case, to create this false return. Bowman attached false Forms 1099-OID to the return which fraudulently claimed that he had income of $447,036, and he also falsely claimed that all of this income was withheld to satisfy his income tax liabilities. Sentencing is set for Aug. 7, 2014, where Bowman faces a statutory maximum sentence of five years in prison, followed by up to three years of supervised release.
The case was investigated by Special Agents of the IRS-Criminal Investigation. The case is being prosecuted by Trial Attorney Greg Bailey of the Tax Division and Assistant U.S. Attorney Bertha Mitrani for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
Florida Man Pleads Guilty to Filing False Claim with Internal Revenue Service for Tax RefundRead the Press Release
Bradley Bowman, a resident of Lighthouse Point, Florida, pleaded guilty to one count of filing a false claim for a tax refund with the Internal Revenue Service (IRS), U.S. Attorney Wifredo Ferrer for the Southern District of Florida and Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division announced today. Bowman was indicted on March 25, 2014.
According to court documents, in 2009, Bowman submitted to the IRS a false individual income false tax return for tax year 2005 that fraudulently claimed a refund of $299,024. Bowman engaged Penny Jones, who is currently serving a 12 year sentence in a related case, to create this false return. Bowman attached false Forms 1099-OID to the return which fraudulently claimed that he had income of $447,036, and he also falsely claimed that all of this income was withheld to satisfy his income tax liabilities. Sentencing is set for Aug. 7, 2014, where Bowman faces a statutory maximum sentence of five years in prison, followed by up to three years of supervised release.
The case was investigated by Special Agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Bertha Mitrani for the Southern District of Florida and Trial Attorney Greg Bailey of the Tax Division.
Additional information about the Tax Division and its enforcement efforts may be found at the division website.
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.
Final Defendant in Snohomish County Gun Trafficking Ring Sentenced to PrisonRead the Press Release
The final defendant in a Snohomish County gun trafficking ring was sentenced today to six years in prison and three years of supervised release for conspiracy to unlawfully traffic in firearms and being a felon in possession of a firearm, announced U.S. Attorney Jenny A. Durkan. CURTIS VAN PUTTEN, 44, of Marysville, Washington, pleaded guilty in February 2014 on the eve of trial. VAN PUTTEN has prior convictions for drug possession and possession of stolen property. As a felon, he was barred from possessing the three stolen assault rifles that he sold to an undercover officer on December 11, 2012. The firearms had been stolen from a home in Oak Harbor, Washington just the day before the sale. At sentencing U.S. District Judge James L. Robart said stolen assault weapons “show up in the hands of people who do very bad things.”
“This defendant believed he was selling guns to the leader of a criminal gang, and expressed no concern about putting powerful firearms in the wrong hands. He has earned his six year prison term,” said U.S. Attorney Jenny A. Durkan. “Our country has experienced all too well the terrible destruction that occurs when firearms are put in the hands of the wrong people. As a result of gun violence, lives are ended, families are destroyed, and dreams are shattered.”
The leader of the gun trafficking ring, Heather Chancey a/k/a/ Heather Lee Slater, 34, of Marysville, Washington, was sentenced in February 2014 to nine years in prison. According to records in the case, on multiple occasions between October 2012 and January 2013, Heather Chancey and her co-conspirators sold guns to an undercover law enforcement agent. Most of the sales occurred in the parking lot of the Tulalip Resort Casino in Marysville, Washington. Some of the sales occurred in other parking lots of businesses in Marysville or Arlington, Washington or at a Marysville residence. The ring trafficked 49 firearms. VAN PUTTEN sold three of the firearms to the undercover officer in a transaction brokered by Chancey at an Interstate 5 rest stop near Arlington, Washington. VAN PUTTEN sold the undercover officer a Ruger Ranch .223 caliber rifle, a DPMS Panther Arms, model AR-15, .223 caliber rifle and a DPMS Panther Arms, model LR-308, .308 caliber rifle for $1050.
In addition to Chancey, conspirators James Michaels was sentenced to 10 months in prison and Mark Jenkins was sentenced to 42 months in prison for conspiracy to unlawfully sell firearms.
This investigation was conducted by the Snohomish Regional Gang and Drug Task Force, the Seattle Police Department’s Major Crimes Task Force, and the FBI. During the investigation, those agencies were assisted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Snohomish County Violent Offender Task Force and the United States Marshal’s Violent Offender Task Force.
The case was prosecuted by Assistant United States Attorneys Kate Crisham and Justin Arnold.
Federal Grand Jury Returns Superseding Indictment Charging Lake County Man with Advertising, Transporting, and Possessing Child PornographyRead the Press Release
Ocala, Florida – United States Attorney A. Lee Bentley, III announced today that Aaron Michael Murray (21, Clermont) has been charged by a federal grand jury in a superseding indictment with five counts of advertising for child pornography over the Internet, four counts of transporting child pornography over the Internet, and two counts of possessing child pornography. On each of the advertising counts, Murray faces a mandatory minimum penalty of 15 years, up to 30 years in federal prison. He faces a mandatory minimum penalty 5 years, up to 20 years’ imprisonment on each transportation count, and up to 10 years in prison on each possession count. Each count in the superseding indictment also carries a potential life term of supervision.
Murray was arrested on June 28, 2013, in Lake County, pursuant to a criminal complaint. He was originally indicted in this case on July 25, 2013. His trial is scheduled to begin on July 1, 2014 before Chief United States District Judge Anne C. Conway, at the United States Courthouse in Orlando.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Lake County Sheriff’s Office, the Federal Bureau of Investigation, the Dallas (Texas) Police Department, and the Carrollton (Texas) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Detroit Man Pleads Guilty to Cocaine Distribution in HuntingtonRead the Press Release
Huntington, W.Va. – Emanuel Louis Harris, also known as “Forty,” age 44, of Detroit, Michigan, plead guilty in federal court in Huntington to possession with intent to distribute cocaine announced United States Attorney Booth Goodwin. In January of 2014, police found Harris at a residence on Division Street in Huntington with approximately 17.3 grams of cocaine powder. Harris was attempting to flush about an ounce of heroin down the toilet when police entered the house. Police also used a confidential informant to buy prescription pills from Harris on three separate occasions in 2012. Harris faces up to 20 years imprisonment and a $1 million fine when he is sentenced on September 2, 2014. United States District Court Chief Judge Robert C. Chambers presided over the hearing.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Clay County Jail Administrator Sentenced to Four Years in Prison for Violating Inmates' Civil RightsRead the Press Release
BIRMINGHAM -- A federal judge today sentenced the former Clay County jail administrator to four years in prison for using his authority to sexually abuse or otherwise deprive inmates of their civil rights, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Richard D. Schwein Jr. and Alabama Bureau of Investigation Division Chief Neil G. Tew.
JEFFREY SCOTT COTNEY, 48, of Ashland, pleaded guilty in February to four counts of deprivation of rights under color of law between May 2009 and spring 2010, while he worked as administrator of the Clay County Detention Center. U.S. District Judge L. Scott Coogler sentenced Cotney for the civil rights violations. Along with the prison term, Judge Coogler ordered Cotney to register as a sex offender and prohibited him from seeking or holding a law enforcement job or any position granting him custodial authority over others. Cotney agreed to all those conditions in his plea agreement with the government.
"We're committed to working with the FBI and ABI to ensure this kind of abuse is uncovered and prosecuted," Vance said.
While jails and prisons strip inmates of many individual rights, including freedom of movement, freedom of action and freedom of choice, the government notes in its sentencing memorandum, incarcerated individuals retain the right to be free of cruel and unusual punishment, to maintain bodily integrity, and to not be deprived of liberty without due process of law.
"The system of incarceration requires trustworthy, honorable individuals who will properly exercise the immense powers granted to them by the State," the government said in its memorandum. "Defendant Cotney violated individuals' constitutional rights, abused the public trust, and corrupted the judicial process."
Part of Cotney's job as Clay County's jail administrator was running the inmate worker program, recommending which inmates could participate in the program and supervising the inmate workers.
Cotney pleaded guilty to four counts of depriving three different inmates of their civil rights, but the conduct he admitted in his plea agreement also includes a fourth inmate.In his plea, Cotney admitted to coercing one inmate to submit to a sexual act on four occasions in 2009, three times at Cotney's home and once on the side of the road during a trip to Oxford for automobile parts.
Cotney admitted to violating the civil rights of a second inmate in 2009, forcing that inmate to submit to a strip search with no law enforcement justification.
Cotney admitted that he repeatedly and improperly grabbed and touched a third inmate in 2009 and 2010. Cotney acknowledged he told the inmate that he needed to check whether the inmate had any new tattoos and ordered the inmate to remove all his clothing. The inmate had tattoos on his legs, chest, hipbones, arms and groin, and Cotney felt all the tattoos, according to his plea.
Cotney also admitted to falsely accusing a fourth inmate of possessing contraband and ordering that inmate into lockdown for 45 days and then having him transferred to a state prison, all in retaliation for the man rejecting a sexual proposition from Cotney.
The FBI and ABI investigated the case, which Assistant U.S. Attorneys Tamarra Matthews-Johnson and Elizabeth Holt prosecuted.
Chico Florist Business Owner Found Guilty of Retaliatory Tax DodgeRead the Press Release
SACRAMENTO, Calif. — After a four-day trial, a federal jury found James O. Molen, 70, of Chico, guilty today on five counts — two counts of filing false liens against federal officers, two counts of contempt, and one count of interference with the administration of tax laws, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Troy L. Nunley.
According to evidence presented at trial, Molen ran Touch of Class Florist in Chico, and in beginning in 2000, he stopped withholding and paying federal employment and unemployment taxes. After years of collection efforts by the IRS, Molen filed false liens in 2004 against people who had been involved in his case: two federal judges, the United States Attorney, two civil Department of Justice attorneys, an IRS revenue officer, and a witness. The liens claimed collateral of more than $93 billion. After a 2007 court order prohibited him from filing more false liens against federal officers, in 2010, Molen filed false liens against two revenue officers assigned to collect his taxes, claiming more than $199,000 in collateral. Molen ignored several court orders, sent a bogus tax payment to the IRS that he called an “International Bill of Exchange,” and sought to frustrate collections by placing his residence and bank accounts in trusts.
In 2003, Molen told the New York Times of the government, “"They can take a hike. … I do not intend to abide by any command of me, flesh and blood, to do anything.” This afternoon, Molen was immediately remanded upon conviction. Judge Nunley noted that Molen “thinks the law doesn’t apply to him” and has put “people through the ringer” by filing liens “retaliating against them.”
This case is the product of an investigation by the Internal Revenue Service –Criminal Investigation and the United States Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorneys Matthew D. Segal and Sherry D. Hartel Haus are prosecuting the case.
Molen is scheduled to be sentenced by Judge Nunley on August 21, 2014. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count of filing false liens, and three years in prison and a $5,000 fine for impeding the due administration of the internal revenue laws. The charge of contempt holds no maximum penalty. 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.
Charlotte Man Sentenced to More Than 39 Years in Prison for Armed Robbery and Attempted Armed Robbery ChargesRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced today Tony Humphrey, 20, of Charlotte, to 471 months in prison, followed by five years of supervised release on charges stemming from an April 2012 armed robbery spree of several area businesses and a bank, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Rodney D. Monroe, of the Charlotte-Mecklenburg Police Department.
According to court documents and today’s sentencing hearing, on two occasions, Humphreys committed armed robberies at two different branches of Regional Finance Corporation (Regional Finance). On April 3, 2012, Humphrey robbed the Regional Finance located on Tryon Street in Charlotte, stealing $2,000 in cash. Then, on April 16, 2012, Humphrey robbed a second Regional Finance branch located on E. Independence Boulevard, also in Charlotte. $3,400 was stolen from that location. On both occasions, Humphrey pointed a firearm at employees while he demanded money.
Also according to court documents and today’s sentencing hearing, Humphrey and his co-conspirator, Corey Miller, 25, attempted to commit two armed robberies. On April 6, 2012, Humphrey and Miller attempted to rob a Charlotte-area Sonic restaurant. Court records show that the two men placed an order at the drive through window and then Humphrey entered the restaurant armed with a handgun and demanded money. According to court records, when a restaurant employee stated that she could not give him money, Humphrey pointed the gun at the employee’s head and pulled the trigger. The gun did not fire. Miller waited outside in the getaway car and drove Humphrey away from the scene. On April 14, 2012, Humphrey and Miller attempted to rob the Crown Auto Sales and Finance office located in Charlotte. Both Humphrey and Miller possessed and brandished firearms during that attempted robbery.
On April 13, 2012, Humphrey and Adonte Young, 28, robbed a PNC Bank branch located on East Boulevard in Charlotte. According to filed court documents and related court hearings, Humphrey and Young entered the bank and demanded cash. At least one of the two men was armed with and brandished a handgun. As they were leaving the bank with over $9,000 in cash, one of robbers fired two shots. Young and Humphrey fled the bank in a stolen vehicle which they abandoned. Police recovered a handgun, as well as a disguise worn by Young, from the stolen getaway car.
In January of 2013, Humphrey pleaded guilty to two counts of Hobbs Act robbery, two counts of attempted Hobbs Act robbery, one count of armed bank robbery, and two counts of possessing and brandishing a firearm during and in relation to a crime of violence.
In January of 2013, Corey Miller pleaded guilty to the April 6, 2012 attempted Hobbs Act Robbery of the Sonic Restaurant and to the April 14, 2012 attempted Hobbs Act robbery of the Crown Auto Sales. He also pleaded guilty to possessing and brandishing a firearm during the attempted Hobbs Act robbery of the Crown Auto Sales. On February 3, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Corey Miller to serve 11 years in prison, to be followed by 5 years of supervised release.
In January 2013, Adonte Young pleaded guilty to possessing and discharging a firearm and aiding and abetting the same, in relation to the April 13, 2012 robbery of the PNC Bank on East Boulevard. On March 31, 2014, Chief U.S. District Judge Frank D. Whitney sentenced Young to 10 years in prison, to be followed by 5 years of supervised release.
Humphrey remains in federal custody and will be turned to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI’s Safe Streets Task Force and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney Elizabeth F. Greene of the U.S. Attorney’s Office in Charlotte.
California Man Sentenced to Prison for Making False Statement to BankRead the Press Release
Urbana, Ill. – A California man, Michael Allen Cox, 39, was taken into law enforcement custody when his sentencing hearing ended on May 22, 2014. U.S. District Judge Michael P. McCuskey ordered Cox to serve 27 months in federal prison for making a false statement to a bank related to a loan application to purchase a Rantoul, Ill., apartment complex. Cox was also ordered to pay $650,000 restitution to the victim bank. Further, Cox will remain on supervised release for five years following his release from prison with the condition that he cannot engage in real estate transactions without approval from U.S. Probation.
On Feb. 10, 2014, Cox entered a plea of guilty to making a false statement to the Bank of Rantoul in July 2008. Cox admitted he provided a false escrow receipt in the amount of $250,000 as proof of funding necessary to rehabilitate the Parkview Rentals Apartments located at 1400 Hobson Drive, Rantoul, Ill. Cox admitted the escrow receipt, which appeared to be a cashier’s check for $250,000 from Wells Fargo Bank, was false and no such deposit existed.
In July 2008, Cox, acting as the chief operating officer for Crane and Power Industries, Los Angeles, received a loan in the amount of $1,663,459.00 to purchase the Parkview apartments. Cox set up Evergreen Property Management to collect rent from the rental properties and to manage the rehabilitation of the property. By February 2009, Crane and Power failed to make mortgage payments and the property went into foreclosure. The apartments were in complete disrepair and deemed uninhabitable by the time the foreclosure was finalized in September 2009. Bank of Rantoul was unable to sell the property and the property was eventually deeded to the Village of Rantoul in February 2011, at a loss of approximately $2 million dollars on the property.
The case investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Ronda H. Coleman.
# # # #Buffalo Man Sentenced for Bank RobberyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Aaron Benn, 23, of Buffalo, N.Y., who was convicted of bank robbery, was sentenced to 43 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $1,429 in restitution.
Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the case, stated that on June 13, 2013, Turner entered M&T Bank, located at 788 Tonawanda Street in Buffalo. The defendant passed the teller a demand note threatening the use of a weapon. The teller gave Turner a specific amount of money.
On July 1, 2013, the defendant drove co-defendant Jeffrey Turner to the M&T Bank, located at 1580 Hertel Avenue in Buffalo. Turner passed the teller a demand note threatening the use of a weapon. The teller gave him a specific amount of money. Turner exited the bank with the money and got into a car driven by Benn who knew that Turner was going into the branch with the intention to rob the bank.
Jeffrey Turner was also convicted of bank robbery and sentenced to 33 months in prison.
The plea is the culmination of an investigation by the Federal Bureau of Investigation’s Safe Streets Task Force.Broken Arrow Man Pleads Guilty to Gratuity Received by Public OfficialRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JEFFREY REESE FISHER, age 37, of Broken Arrow, Oklahoma, pled guilty to an Information charging him with Gratuity Received by a Public Official, in violation of Title 18, United States Code, Sections 201(c)(1)(B) and 2.
The charges arose from an investigation by the United States Department of Veterans Affairs, Office of Inspector General.
The Information alleged that beginning in April 2009 and continuing through March 2010, the defendant, a public official as an employee of the Department of Veterans Affairs, otherwise than as provided by law for the proper discharge of official duties, directly and indirectly did demand, seek, receive, accept and agree to receive and accept something of value personally for and because of an official act performed and to be performed by such official, that is FISHER, as Chief of Prosthetics for the Veterans Affairs Hospital in Muskogee, Oklahoma, solicited Al’s Medical, Muskogee, Oklahoma, a medical supply company doing business with the Veterans Affairs Hospital in Muskogee, Oklahoma, to pay for construction and remodeling work on FISHER’s private residence.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. The defendant remains on bond pending sentencing.
The statutory range of punishment is not more than 2 years imprisonment and/or a fine of up to $250,000.00.
First Assistant United States Attorney Doug Horn represented the United States.
Birmingham Man Sentenced to 20 Years in Prison for Selling Heroin That Caused A DeathRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Birmingham man to 20 years in prison for selling heroin that caused the 2013 death of a Northport man, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
HAROLD DONNELL MIMS, 31, pleaded guilty in February to selling heroin that resulted in the death of the 28-year-old man at a Tuscaloosa apartment complex. The charge carries a mandatory minimum 20-year sentence.
"Heroin is a deadly drug, and, as today's sentence illustrates, if you sell heroin that causes someone to overdose and die, you can be prosecuted and spend at least 20 years in prison," Vance said.
"Fighting the spread of heroin use and overdose deaths requires a community-wide commitment," Vance said. "On June 10, leaders in the medical, law enforcement and education communities will present a summit in Birmingham on the wide-ranging heroin problem so that the community can begin formulating a plan of action. We look forward to being part of that work," she said.
"Today’s sentence should send a clear message to the drug traffickers who sell poison to our children," Morris said. "That message is that law enforcement will tirelessly work to investigate those who sell any amount of heroin. The use, abuse and distribution of heroin is rising at alarming rates, and, unfortunately, so is the overdose death rate," he said. "The investigation and prosecution of heroin traffickers is one of many important steps in eliminating heroin from our communities."
Authorities arrested Mims during a roundup of heroin dealers in north Alabama in September. The roundup was part of an initiative launched in 2012 by the U.S. Attorney's Office, the DEA, district attorneys, and many federal, state and local law enforcement agencies to attack the supply of heroin in the Northern District of Alabama.
Mims' sold heroin to a confidential police source and to undercover officers in 2012 and 2013, and police were monitoring his actions when he sold heroin on Feb. 21, 2013, to the Northport man who ingested it and died later that night in Tuscaloosa, according to his plea agreement.
Mims was one of 49 people who had been indicted on drug distribution charges over the first several months of 2013 and were targeted for arrest in the September sweep. Of the 49 defendants, 39 have pled guilty and one was convicted at trial. One defendant remained a fugitive until April, when he was arrested in Atlanta.The heroin community action summit, "Pills to Needles: The Pathway to Rising Heroin Deaths," will be from 8:30 a.m. to 4:30 p.m., June 10, at the University of Alabama at Birmingham National Alumni Society House, 1301 1st Ave. South. A registration form is available through the following link: http://go.usa.gov/8BGj.
The DEA investigated the cases in conjunction with many state and local agencies. Assistant U.S. Attorney L. James Weil Jr. is prosecuting the cases.
Berthold Man Sentenced on Federal Firearm ChargesRead the Press Release
BISMARCK – U.S. Attorney Timothy Q. Purdon announced that on May 27, 2014, Gary Steven Hinton, of Berthold, N.D., was sentenced before U.S. District Judge Daniel L. Hovland on one count of possession of a firearm and ammunition by a convicted felon.
Judge Hovland sentenced Hinton to 51 months’ imprisonment to be followed by three years of supervised release. Hinton was also ordered to pay a $100 special assessment to the Crime Victims Fund.
On January 14, 2013, Ward County law enforcement officials responded to a report of a domestic violence incident occurring in Berthold, N.D. Upon arrival, officers found Gary Steven Hinton at the residence. Officers located two handguns in a backpack in Hinton’s vehicle. Officers also discovered that a third handgun had been disassembled. The barrel of the gun was found in Hinton’s vehicle and the remainder of the gun was found in a toolbox in the garage.
Hinton was prohibited from possessing a firearm due to felony convictions, including the following: two counts of delivery of a controlled substance in Ward County (ND) in 2008; and reckless endangerment in Ward County (ND) in 2009.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Ward County Sheriff’s Office, the North Dakota Parole and Probation Office, and the Ward County Narcotics Task Force.
Assistant U.S. Attorney David Hagler prosecuted the case.
Baton Rouge Attorney Charged with Receiving Child Pornography over A Three Year PeriodRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the filing of a Bill of Information charging WILLIAM STEVEN MANNEAR, age 62, of Baton Rouge, Louisiana, with receiving child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
If convicted, the defendant faces a mandatory minimum of 5 years imprisonment and up to 20 years imprisonment, a period of supervised release following imprisonment of up to life, a fine of up to $250,000, restitution to any victims, and forfeiture of property facilitating his criminal activity.
The Bill of Information alleges that the defendant knowingly received child pornography using a computer for approximately three years during the period of August 2009 through September 2012.
This matter was investigated by the Federal Bureau of Investigation, the East Baton Rouge Parish Sheriff’s Office, and the Naval Criminal Investigative Service. The matter is being prosecuted by Assistant United States Attorney Chris Dippel.
NOTE: A Bill of Information is a charge by the U.S. Attorney that offenses have been committed by a defendant. The defendant is presumed innocent until and unless proven guilty at trial or through a guilty plea.
Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division Announced Her Departure from the Department Today, Effective as of June 5, 2014Read the Press Release
Kathryn Keneally, Assistant Attorney General for the Tax Division, will leave her post at the Department of Justice effective June 5, 2014, she announced today.
“Over the past two years, Kathryn Keneally has provided exemplary leadership to the Justice Department's Tax Division, setting a standard of excellence, integrity and professionalism that will guide and challenge those who carry the division’s important work into the future,” said Attorney General Eric Holder. “As a result of her determined efforts, her exceptional judgment, and the tireless work of her colleagues across the division -- and their partners nationwide -- the Tax Division has secured historic gains in our fight to protect the American people from tax fraud and financial misconduct and to hold accountable any individual, bank or other institution that violates our tax laws. Although I wish her the best as she seeks new challenges and opportunities, I will miss her wise counsel and her tireless commitment to the mission we share. I thank her for her service to the American people.”
“I have been very fortunate to work every day with the talented and extraordinary women and men of the Tax Division, who are dedicated to ensuring that our nation’s tax laws are enforced fairly and consistently,” said Assistant Attorney General Keneally. “I have benefited from the strong relationship between the division and the Internal Revenue Service, which shares our commitment to tax enforcement and voluntary tax compliance. I am grateful for the leadership and support of the Attorney General, the Deputy Attorney General and the Associate Attorney General. I will always be grateful to the President for giving me this opportunity to serve.”
During Keneally’s tenure as Assistant Attorney General, the division has obtained significant results in all areas of tax enforcement.
Under Keneally’s leadership, the division broadened its enforcement against the use of foreign bank accounts to evade U.S. taxes. In August 2013, as a result of Keneally’s efforts, the department announced a unique program to allow Swiss banks to cooperate and to resolve past wrongdoing. Through this program, which has the support of the government of Switzerland, over 100 banks that were not previously under investigation have come forward to provide valuable law enforcement information. In January 2013, Wegelin, the oldest bank in Switzerland, pleaded guilty to felony tax charges. In May 2014, the department announced a guilty plea by Credit Suisse, the second-largest bank in Switzerland. The plea included the highest ever payment in a criminal tax case. Keneally worked directly with the bank’s regulators to facilitate simultaneous enforcement action against Credit Suisse. The division’s enforcement efforts have expanded to include investigations and charges against banks, bankers, professional advisors and accountholders for using secret bank accounts in countries around the globe.
During Keneally’s tenure, the division has also focused on forcefully combating stolen identity refund fraud. In September 2012, the division announced new procedures to respond to this increasing criminal threat, and to strengthen coordination among the division, the U.S. Attorneys’ Offices and federal and local law enforcement. Prosecutions led by division attorneys have resulted in significant convictions and lengthy sentences, and have helped turn the tide in this law enforcement challenge.
The division has also continued to enjoy favorable outcomes in over 95 percent of all civil and criminal cases litigated by the division. These efforts have included a robust injunction program to stop fraudulent return preparers and scheme promoters, continued successful litigation against abusive tax shelters, civil and criminal actions to enforce employment tax laws and core mission litigation to enforce tax law, collect taxes and prosecute those who would cheat on their obligations. Under Keneally’s leadership, the division has undertaken a more comprehensive approach to civil and criminal tax enforcement.
Keneally was sworn in as the Assistant Attorney General for the Tax Division on April 6, 2012. Before joining the department, she practiced law in New York City, representing individuals and businesses before the Internal Revenue Service and the Department of Justice in criminal and civil tax cases. She also appeared and tried cases in the federal district and appellate courts, and in the U.S. Tax Court. Keneally also served as the chair of the ABA Section of Taxation's Committees on Civil and Criminal Tax Penalties and Standards of Tax Practice, and was a vice chair of the Section of Taxation. She will be returning to her home in New York.
Appeals Court Upholds Conviction of Woonsocket Drug Trafficking Conspiracy LeaderRead the Press Release
PROVIDENCE, R.I. – The First Circuit Court of Appeals today upheld the conviction of Robert O. Robinson, 32, of Woonsocket, for running a crack cocaine trafficking conspiracy out of a Woonsocket bar, announced United States Attorney Peter F. Neronha. Robinson was convicted by a federal court jury in June 2012 of conspiracy to distribute 280 grams or more of crack cocaine and ten counts of distribution of crack cocaine. He was sentenced in June 2012 by U.S. District Court Judge Mary M. Lisi to 22 years in federal prison.
In a 35-page decision, the Court of Appeals dismissed Robinson’s claims of the pre-trial deprivation of his Sixth Amendment right to counsel of his choice, coupled with a claim that the district court trial judge erred in refusing Robinson’s numerous requests for continuances. Robinson, who had previously dismissed attorneys appointed by the court, represented himself at trial.
According to the government’s evidence presented at trial, Robinson led a crack cocaine trafficking conspiracy out of Talus Bar in Woonsocket. During the course of a three-month investigation by ATF and Woonsocket Police, a confidential informant repeatedly went to the bar and placed orders for crack cocaine. The evidence showed that the drugs would be delivered by Robinson or one of his co-defendants. Many of the transactions were electronically recorded.
Four co-defendants charged in this matter pleaded guilty in federal court to drug distribution charges and were sentenced to sentences ranging from 1 year and one day to 60 months in federal prison.
The drug trafficking conspiracy was uncovered during a joint investigation by the United States Attorney’s Office, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Woonsocket Police during an unrelated firearms and drug investigation in Woonsocket. That investigation led to the arrest of sixteen individuals and the seizure of more than three-dozen firearms.
In addition to being sentenced by U.S. District Court Judge Mary M. Lisi to 240 months in prison on conspiracy and drug charges, Robinson, who was on federal supervised release at the time of his arrest in June 2011, was also sentenced to a consecutive sentence of 24 months in federal prison for violating terms of his supervised release. Robinson was on federal supervised release for a previous drug trafficking conviction.
The cases against Robinson and his co-defendants were prosecuted in U.S. District Court by Assistant U.S. Attorneys Richard W. Rose and Ly T. Chin. The matter was argued before the First Circuit Court of Appeals by Assistant U.S. Attorney Donald C. Lockhart.
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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]Another Detroit Man Pleads Guilty to Heroin DistributionRead the Press Release
Huntington, W.Va. – United States Attorney Booth Goodwin announced today that Alvester Thomas, age 34, of Detroit, Michigan, was sentenced to ten years and one month imprisonment as a result of his February 2014 guilty plea to possession with intent to distribute 1000 grams or more of heroin. Agents with the Huntington Violent Crime and Drug Task Force found the heroin in a safe inside the home that Thomas shared with Kristen Michelle Graley at 3008 Rear Third Avenue, Huntington, West Virginia. Graley pleaded guilty to related drug charges and was sentenced to five years’ imprisonment. Thomas admitted that the heroin was his and that he intended to sell it in the Huntington area. In addition to the heroin, agents seized 545 oxycodone pills, 73 oxymorphone pills, additional amounts of heroin and approximately three pounds of marijuana. Agents also recovered a gun from the kitchen of the home and more than $17,000 in cash.
The Honorable Robert C. Chambers presided over the case.This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
26 May 2014
Two Individuals Plead Guilty to Conspiring to Launder Bribes Received in AfghanistanRead the Press Release
Memphis, TN – Jimmy W. Dennis, 44, formerly of Clarksville, TN, and James C. Pittman, 45 of Rossville, GA, have each pleaded guilty to a one-count information charging conspiracy to launder approximately $250,000 in bribe payments received from Afghan contractors in Afghanistan, announced Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division; United States Attorney for the Western District of Tennessee Edward L. Stanton III; and United States Attorney for the Eastern District of Tennessee William C. Killian.
According to facts revealed in each criminal information and during the respective plea hearings, Dennis, a former First Sergeant with the United States Army, was assigned to the Humanitarian Aid Yard at Bagram Air Field, Afghanistan. He served as a paying agent from March 2008 until his return to his home base at Fort Campbell, KY.
Together with a Project Purchasing Officer (PPO), Dennis worked as a team to procure supplies from local Afghan contractors. These supplies were used as part of the Commander’s Emergency Response Program for urgent humanitarian relief requirements in Afghanistan.
Soon after he began working as a paying agent, an Afghan interpreter offered Dennis a $10,000 bribe/kickback to accept certain Afghan contractors onto the list of eligible contractors. Dennis accepted the money and later accepted bribe payments from a second interpreter to allow additional vendors onto the list of eligible contractors. Dennis estimated that he personally received about $250,000 in bribes.
Dennis smuggled the money home through the U.S. Mail through a variety of means including sending home “jingle trucks” (colorfully decorated trucks or buses in Afghanistan and Pakistan). Dennis hid the money in the rear compartment of the toy trucks. Dennis also shipped a hope chest containing approximately $100,000 in cash in a concealed compartment.
While on leave, Dennis met with Pittman and asked if he could send the money to Pittman to launder through his landscaping company. Pittman agreed and began sending “salary” checks to Dennis.
Dennis pleaded guilty to the information today in Memphis before U.S. District Judge Samuel H. Mays, Jr and his sentencing is set for September 4, 2014. Pittman pleaded guilty on May 15, 2014 before U.S. Magistrate Judge William B. Carter of the Eastern District of Tennessee for his role in this conspiracy. Both men face up to 20 years in prison, a fine of up $500,000, restitution and forfeiture
.
These matters are being investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Army Criminal Investigative Division, the Defense Criminal Investigative Service, and the Air Force Office of Special Investigation. The prosecution is being handled by Trial Attorney Daniel Butler of the Criminal Division and Assistant U.S. Attorneys Frederick Godwin of the Western District of Tennessee and James Brooks of the Eastern District of Tennessee.Cranston Man Convicted of Threatening to Assault and Kill IRS Agent and FamilyRead the Press Release
PROVIDENCE, R.I. – U.S. District Court Chief Judge William E. Smith on Friday found Andrew A. Calcione, 49, of Cranston, guilty of one count each of threatening to assault and murder an IRS revenue agent and threatening to assault and murder the agent’s family, announced United States Attorney Peter F. Neronha; J. Russell George, Treasury Inspector General for Tax Administration; and Robert E. O’Malley, Special Agent in Charge, Treasury Inspector General for Tax Administration, New York Field Division.
Chief Judge Smith delivered his verdict after taking under advisement testimony presented in a jury waived trial on May 21, 2014. Calcione faces a sentence of up to 20 years in federal prison when he is sentenced on September 11, 2014.
“The vast majority of Americans understand the payment of their federal taxes is part of their civic responsibilities. A very small number do not, and an even smaller number not only refuse to pay their taxes, but engage in the kind of outrageous, threatening, and frankly bizarre behavior involved here,” commented United States Attorney Peter F. Neronha. “This Office will continue to protect and seek justice for government officials simply trying to do their jobs on behalf of the people of the United States. Suffice it to say that we will be seeking the toughest, appropriate sentence in this case.”
"The Treasury Inspector General for Tax Administration works aggressively to protect IRS employees from individuals who seek to impair the integrity of tax administration by threatening harm or committing violent acts," said J. Russell George, the Treasury Inspector General for Tax Administration.
"Threats and assaults directed against IRS employees are investigated and pursued to the fullest extent of the law," said Special Agent in Charge O'Malley. "We will continue to place a priority on ensuring the safety of IRS employees by working towards the arrest, conviction, and sentencing of the perpetrators," he added.
According to the government’s evidence presented to the court, an IRS revenue agent was assigned to examine Calcione’s personal federal tax returns for years 2008, 2009 and 2010. As a result of the examination, the agent estimated that a $330,000 tax liability would be assessed against Calcione.
In April 2013, while continuing to work on the audit, the IRS revenue agent requested that Calcione and an ex-wife of Calcione sign a Consent to Extend Time to Assess Tax form. Calcione signed the form but his ex-wife had not. On July 12, 2013, the revenue agent left a voicemail message for Andrew Calcione inquiring as to the status of the executed form.
According to the government’s evidence and court documents, on July 15, 2013, an IRS revenue agent assigned to the Warwick office received two voicemail messages from Calcione. One of the messages contained a threat made by Andrew Calcione that if the agent called him again he would show up at the agent’s home and torture the agent, then rape and kill his wife and injure his daughter while the agent watched, before killing the agent. A second message left by Calcione requested that Calcione disregard the first message, which Calcione said was left in error.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.Knowingly and intentionally threaten to assault and murder a Revenue Agent of the IRS with intend to interfere with the official in the performance of official duties and knowingly and intentionally threaten to assault and murder a member of the immediate family of a Revenue Agent of the IRS are each punishable by statutory penalties of up to 10 years in federal prison and a fine of up to $250,000.
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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]
24 May 2014
Child Pornography Charges Filed Against Perrysburg ManRead the Press Release
A Perrysburg man was indicted on four counts related to child pornography, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Andrew B. Palm, age 34, engaged in the conduct between October 2012 and April 2013, according to the indictment. The charges relate to production, advertising, receipt and possession of child pornography.
If convicted, the defendant’s sentence will be determined by the Court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Department of Homeland Security Investigations, Cleveland, Ohio. The case is being handled by Assistant United States Attorney Alissa M. Sterling
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
23 May 2014
Wheeling Park Students Named Winners of Drug Free Clubs Essay ContestRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA — Two Wheeling Park students were recognized today as the winners of the annual Drug Free Clubs of America essay contest. Senior Kerri Smith won first place and was awarded a $500 college scholarship and a special award from the Department of Justice. Shayla McFarland was the runner-up in the contest, which asked club members to discuss the negative impact that marijuana can have upon young people.
Honorable mention winners included Betsy Brossman and Maggie Childers of Wheeling Park High School; Hannah Mozingo of Wheeling Central Catholic High School; Lauren Cline and Shelby Sands, Magnolia High School; and Katelin Bales, Cameron High School.
Drug Free Clubs of America has chapters throughout Northern West Virginia which help students to remain drug-free. The group rewards good choices and empowers members with effective prevention tools to keep them on the right track. Members voluntarily submit to random drug screenings throughout the school year.
William Ihlenfeld, II, United States Attorney for the Northern District, David Robinson of the Wheeling Elks Lodge No. 28, and Bruce Archer of Wheeling Hospital presented the awards to the winners.Pictured left to right
Wheeling Park Senior Kerri Smith & U.S. Attorney William Ihlenfeld, IIWeek in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS (before Magistrate Judge Roger B. Cosbey:)
Courtney Crusoe, 24, of Fort Wayne, Indiana pled guilty to the felony offense of conspiracy to commit money laundering. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lovita Morris-King.
Alejandro Luna, 26, of Fort Wayne, Indiana pled guilty to the felony offense of intent to distribute 5 kilograms or more of cocaine. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Calvin L. Miller, 23, of Indianapolis, Indiana pled guilty to the felony offenses of armed bank robber, brandishing a firearm during and in relation to a crime of violence and forcibly assaulting and impeding a postal employee. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspection Service, Northeast Indiana Federal Bank Robbery Task Force, Allen County Police Department, Fort Wayne Police Department and Indiana State Police.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Marcel Banks, 24, of Fort Wayne, Indiana pled guilty to the felony offense of bank fraud. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lovita Morris-King.
Brandon S. Keister, 22, of Russell, Kentucky pled guilty to the felony offense of theft/burglary of a licensed firearms dealer. The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Tina Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS (before District Judge Theresa L. Springmann:)
Darnell Bontempo, 31, of Fort Wayne, Indiana was sentenced to 18 months imprisonment after pleading guilty to the felony offense of being a violent felon in possession of body armor.According to documents filed in this case, on May 31, 2013 members of the Northeast Indiana Federal Bank Robbery Task Force met with Bontempo regarding his reported stolen vehicle which was used in a robbery.When detectives arrived at the residence, Bontempo was found to be in possession of a ballistic vest.Further investigation revealed that Bontempo has a prior conviction for a crime of violence. In 2001, Bontempo pointed a semi-automatic handgun at another person at close range during an attempted auto theft. As result, Bontempo was charged with, and convicted of Criminal Recklessness as a Class D Felony. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Federal Bank Robbery Task Force.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Crissy Till, 38, of Fort Wayne, Indiana was sentenced to 2 years probation and to pay $51,949.18 in restitution after pleading guilty to the felony offense of theft/embezzlement of United States property.According to documents filed in this case, Till continued to receive and spend Social Security money paid to her father despite his death in February 2012. This case was the result of an investigation by the Social Security Administration and the Office of the Inspector General.This case was prosecuted by Assistant United States Attorney Tina Nommay
Leobardo Gaona, 40, of Huntertown, Indiana was sentenced to 10 months imprisonment (time served) after pleading guilty to the felony offense of conspiracy to distribute and possess with the intent to distribute less than 500 grams of a mixture and substance containing a detectable amount of cocaine.According to documents filed in this case, between July, 2011 and February, 2013 investigation revealed the existence of a large scale narcotics distribution conspiracy operating in northeastern Indiana and southern lower Michigan.Through the use of several wiretaps, it was discovered that an individual by the name of Leobardo Gaona was obtaining quantities of cocaine. This case was the result of an investigation by FBI Fort Wayne Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.The Fort Wayne Safe Streets Task Force is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department.The New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department, and IMAGE Drug Task Force assisted with this investigation.This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
J.D. Richey, 65, of Fort Wayne, Indiana was sentenced to 2 years probation and to pay $7,300.00 in restitution after pleading guilty to the felony offense of embezzlement of labor organization funds.According to documents filed in this case, J.D. Richey worked for Norfolk Southern Railway.As secretary-treasurer, Richey was responsible for taking minutes and handling the union’s finances, including maintaining the financial books and records, and preparing and signing checks.The union had one checking account located and Richey was the sole signatory on the account.The bank statements were sent to Richey at this residence.During a March 2011 audit of the Union’s books, a National Division Auditor discovered that Richey had written a check $7,300 to himself and negotiated it, without the knowledge or authorization of the Union.In his discussion with union officials after discovery of the $7,300 check, Richey stated that he had intended the money to be a short term loan that he knew he had committed a wrong against the Union and that he would try to make amends. The National Division gave Richey an opportunity to repay the Union, but Richey failed to repay the money by an agreed upon deadline. This case was the result of an investigation by the Department of Labor .This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Week in Review - HammondRead the Press Release
Hammond, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS:
- Michael Nash, 39, of Lake Station, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of conspiracy to defraud the United States with respect to claims (i.e. preparing tax returns known to be false so as to increase the refund amount) and aggravated identity theft. Sentencing has been set for 10/16/14. This charge was filed as a result of an investigation by the Internal Revenue Service-Criminal Investigations. This case is being prosecuted by Assistant United States Attorney Joshua Kolar.
- Chauncey Hackett, Jr., 23, of East Chicago, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of possession of a firearm by a convicted felon. Sentencing has been set for 9/3/14. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case is being prosecuted by Assistant United States Attorney Dean Lanter.
- Otis Irvin, Jr., 40, of Gary, Indiana, pled guilty before Chief Judge Philip Simon to the felony offense of distribution of crack cocaine. This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force. This case is being prosecuted by Assistant United States Attorney Dean Lanter.
- John Lytle, 37, of Gary, Indiana, pled guilty before Senior District Judge James Moody to the felony offenses of distribution of crack cocaine and possession of a firearm by a convicted felon. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Thomas McGrath.
- Robert Lemon, 49, of Michigan City, Indiana, pled guilty before District Judge Joseph Van Bokkelen to the felony offense of mail fraud. Sentencing has been set for 8/27/14. This charge was filed as a result of an investigation by the United States Postal Inspection Service and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorney Toi Houston.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
- Andrew Bolden, 30, of Hammond, Indiana, was sentenced by Chief Judge Philip Simon to 30 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney David Nozick.
- Keyosha Toney, 26, of East Chicago, Indiana, was sentenced by Senior District Judge James Moody 1 year of probation to include 8 months of home detention after pleading guilty to the felony offense of making false statements in the purchase of a firearm. According to documents filed in this case, Toney straw-purchased three firearms for another individual whom she knew dealt marijuana. She purchased two additional firearms for herself and lied about her residence address. Finally, Toney purchased all of the firearms while an unlawful user of marijuana and was untruthful about her marijuana use on the forms for purchasing the firearms as well. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. This case was prosecuted by Assistant United States Attorney Dean Lanter.
- Thomas Grad, 57, of Frankfort, Illinois, was sentenced by Senior District Judge James Moody to 1 year of probation and a fine of $1000.00 after pleading guilty to the felony offense of knowingly operating a source in violation of a pretreatment standard (Clean Water Act), that is, he caused to be introduced, hauled and trucked pollutants into a publicly owned treatment works operated by the Hammond Sanitary District. Grad was the Operations Manager at Tierra Environmental & Industrial Services, Inc. This case was a result of an investigation by the Environmental Protection Agency-Criminal Investigations and the Indiana Department of Environmental Management Criminal Enforcement. This case was prosecuted by Assistant United States Attorney Toi Houston.
- Joiey Jones, 36, of East Chicago, Indiana, was sentenced by Chief Judge Philip Simon to 12 months and 1 day imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon. Jones has a prior felony conviction for possession with the intent to distribute crack cocaine. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the East Chicago Police Department. This case was prosecuted by Assistant United States Attorney Thomas McGrath.
Week in Review - Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEA
- Courtney Crusoe, 24, of Fort Wayne, Indiana pled guilty to the felony offense of conspiracy to commit money laundering. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris-King.
- Alejandro Luna, 26, of Fort Wayne, Indiana pled guilty to the felony offense of intent to distribute 5 kilograms or more of cocaine. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony Geller.
- Calvin L. Miller, 23, of Indianapolis, Indiana pled guilty to the felony offenses of armed bank robber, brandishing a firearm during and in relation to a crime of violence and forcibly assaulting and impeding a postal employee. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the United States Postal Inspection Service, Northeast Indiana Federal Bank Robbery Task Force, Allen County Police Department, Fort Wayne Police Department and Indiana State Police. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Anthony Geller.
- Marcel Banks, 24, of Fort Wayne, Indiana pled guilty to the felony offense of bank fraud. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Internal Revenue Service. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Lovita Morris-King.
- Brandon S. Keister, 22, of Russell, Kentucky pled guilty to the felony offense of theft/burglary of a licensed firearms dealer. The magistrate is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Sentencing has not been set. This case is being prosecuted by Assistant United States Attorney Tina Nommay.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS
- Darnell Bontempo, 31, of Fort Wayne, Indiana was sentenced to 18 months imprisonment after pleading guilty to the felony offense of being a violent felon in possession of body armor. According to documents filed in this case, on May 31, 2013 members of the Northeast Indiana Federal Bank Robbery Task Force met with Bontempo regarding his reported stolen vehicle which was used in a robbery. When detectives arrived at the residence, Bontempo was found to be in possession of a ballistic vest. Further investigation revealed that Bontempo has a prior conviction for a crime of violence. In 2001, Bontempo pointed a semi-automatic handgun at another person at close range during an attempted auto theft. As result, Bontempo was charged with, and convicted of Criminal Recklessness as a Class D Felony. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Federal Bank Robbery Task Force. This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
- Crissy Till, 38, of Fort Wayne, Indiana was sentenced to 2 years probation and to pay $51,949.18 in restitution after pleading guilty to the felony offense of theft/embezzlement of United States property. According to documents filed in this case, Till continued to receive and spend Social Security money paid to her father despite his death in February 2012. This case was the result of an investigation by the Social Security Administration and the Office of the Inspector General. This case was prosecuted by Assistant United States Attorney Tina Nommay
- Leobardo Gaona, 40, of Huntertown, Indiana was sentenced to 10 months imprisonment (time served) after pleading guilty to the felony offense of conspiracy to distribute and possess with the intent to distribute less than 500 grams of a mixture and substance containing a detectable amount of cocaine. According to documents filed in this case, between July, 2011 and February, 2013 investigation revealed the existence of a large scale narcotics distribution conspiracy operating in northeastern Indiana and southern lower Michigan. Through the use of several wiretaps, it was discovered that an individual by the name of Leobardo Gaona was obtaining quantities of cocaine. This case was the result of an investigation by FBI Fort Wayne Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The Fort Wayne Safe Streets Task Force is comprised of FBI agents and officers from the Indiana State Police, Allen County Police Department, and Fort Wayne Police Department. The New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department, and IMAGE Drug Task Force assisted with this investigation. This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
- J.D. Richey, 65, of Fort Wayne, Indiana was sentenced to 2 years probation and to pay $7,300.00 in restitution after pleading guilty to the felony offense of embezzlement of labor organization funds. According to documents filed in this case, J.D. Richey worked for Norfolk Southern Railway. As secretary-treasurer, Richey was responsible for taking minutes and handling the union’s finances, including maintaining the financial books and records, and preparing and signing checks. The union had one checking account located and Richey was the sole signatory on the account. The bank statements were sent to Richey at this residence. During a March 2011 audit of the Union’s books, a National Division Auditor discovered that Richey had written a check $7,300 to himself and negotiated it, without the knowledge or authorization of the Union. In his discussion with union officials after discovery of the $7,300 check, Richey stated that he had intended the money to be a short term loan that he knew he had committed a wrong against the Union and that he would try to make amends. The National Division gave Richey an opportunity to repay the Union, but Richey failed to repay the money by an agreed upon deadline. This case was the result of an investigation by the Department of Labor. This case was prosecuted by Assistant United States Attorney Lovita Morris-King.
Warren Man Sentenced to More Than Six Years in Federal Prison for Robbery of Kent Bank in FreeportRead the Press Release
ROCKFORD — A Warren, Ill. man was sentenced today in federal court for armed bank robbery. The defendant, Derrick W. Holmes, 24, was sentenced by U.S. District Judge Frederick J. Kapala to 76 months in federal prison for the robbery of Kent Bank, 996 West Fairview Road, Freeport, Ill., on Sept. 26, 2013. The court also ordered Holmes to pay restitution of $6,338 to Kent Bank.
Holmes pled guilty to the charge on Jan. 27, 2014. According to the written plea agreement, on Sept. 26, 2013, at approximately 1:05 p.m., Holmes entered Kent Bank while wearing gloves, dark glasses, and a blue knit stocking type hat covering his face. Holmes approached the teller counter, raised his arm and pointed a BB gun pistol at an employee of Kent Bank. Holmes told the teller and the other tellers present to give him all their money, put their teller drawers on the counter and that no one will get hurt. The teller pulled a teller drawer and put it on the counter in front of Holmes. Holmes took $6,338 out of the teller drawer stuffed it in his pants pockets. Holmes then walked out of the bank and fled on a motorcycle.
Holmes also admitted in his written plea agreement that on Sept. 26, 2013, he attempted to enter the Community Bank, 401 South Church Street, Orangeville, Ill., in order to rob it but was unable to enter the bank because bank employees locked the doors when they saw Holmes approaching the bank wearing a navy blue ski mask. Holmes has been in federal custody since his arrest by the Nashville, Tenn. Police Department on October 6, 2013.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; David Snyders, Sheriff of Stephenson County; and Mark Rohloff, Sheriff of Green County, Wisconsin.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Wakpala Man Charged with Felon in Possession of FirearmRead the Press Release
United States Attorney Brendan V. Johnson announced that a Wakpala, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of Firearm.
Ronald Moran, Sr., age 36, was indicted on May 13, 2014. He appeared before U.S. Magistrate Judge William D. Gerdes on May 20, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about January 9, 2014, Moran, having been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed and received a firearm which had been shipped and transported in interstate and foreign commerce.
The charge is merely an accusation and Moran is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Standing Rock Law Enforcement Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Moran was released on bond pending trial. A trial date has not been set.
Twenty South Florida Residents Charged in Wire Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Paula A. Reid, Special Agent in Charge, United States Secret Service, announce that Alexander Nicholas Katsabanis Jr, 23, Dimitris Nicholas Katsabanis, 25, Christian Fernando Dume, 32, Christine Eliz Marrero, 24, Javier Osvaldo Labrador, 26, Dietter Navarro, 32, Yurien Martinez Gallardo, 34, Keilyn Nicole Gonzalez, 21, Felix Marino Garcia Custodio, 32, Desiree Marie Basanta, 29, Jonathan Gabriel Gonzalez, 24, Jade Amber Garcia, 27, Melissa Rivas, 25, Dominga Ivett Guerrero, 50, Johan Alvarez, 20, Gustavo Andres Jimenez, 26, Daniel Allen Limbacher, 31, all of Miami, Noel Sebastian Cisneros, 23, of Homestead, Mirelys Reyes, 19, of Hialeah, and Yasael Aquit, 29, of Tampa, have been charged with varied counts of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, wire fraud, in violation of Title 18, United States Code, Section 1343, conspiracy to commit access device fraud, Title 18, United States Code, Section 1029(b)(2), access device fraud, Title 18, United States Code, Section 1029(a)(2), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to the indictment, between August 2012 and July 2013, A. Katsabanis, D. Katsabanis, and Dume, secured and caused other co-conspirators, including Labrador, Limbacher, and Gallardo, to secure the personal identification information (PII) of cellular telephone subscribers, including those of Verizon and AT&T. The customers’ PII included the customer’s name, cellular telephone number, date of birth, and the last four digits of their Social Security Number. A. Katsabanis, D. Katsabanis, Dume, and their co-conspirators, then made and caused to be made telephone calls to Verizon and AT&T, in order to use the unlawfully acquired PII, to add additional users on the existing, legitimate customer accounts, in order to purchase subsidized telephones (iPhones), without the customers’ knowledge and authorization. The retail price for each cellular telephone was approximately $550.00 to $649.00. Customers, and their authorized users, were entitled to purchase the cellular phones at a discounted price of approximately $200.00. A. Katsabanis, D. Katsabanis, Dume, and others, recruited into the scheme various individuals who served as “runners”, who having been fraudulently added as purported “authorized users” on the existing, legitimate accounts of Verizon and AT&T customers, purchased cellular telephones (iPhones) at discounted prices. These purchases were made in the Southern District of Florida, as well as other locations in Florida, California, and Nevada.
Marrero, Labrador, Navarro, Gallardo, K. Gonzalez, Custodio, Basanta, J. Gonzalez, Garcia, Rivas, Cisneros, Guerrero, Reyes, Alvarez, Jimenez, Limbacher and Aquit served as “runners” for the fraudulent scheme. The runners would deliver their purchases to A. Katsabanis, D. Katsabanis, Dume, and others, and be paid approximately $100.00 for each fraudulently acquired telephone. As a result of the scheme, the conspirators enriched themselves from the profits and payments, while the cellular telephone providers, Verizon and AT&T, would incur a loss based on the difference between the retail price and the subsidized cost or discounted price.
During the course of the scheme, 860 Verizon customer accounts were fraudulently accessed, and individuals, including the co-conspirators, were added as authorized users on existing customer accounts, in order to purchase cellular telephones at a discounted price. Approximately 1,249 cellular devices (telephones) were fraudulently purchased. As a result of the fraudulent scheme, Verizon incurred a loss of more than $545,500.
Mr. Ferrer commended the investigative efforts of the United States Secret Service and the Miami-Dade Police Department Economic Crimes Bureau. The case is being prosecuted by Assistant U.S. Attorney Sarah J. Schall.
An indictment is only an accusation, and the defendants are presumed innocent until proven guilty.
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.
Ten Individuals Indicted in $14.5 Million Telemarketing ScamRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that a federal grand jury returned ten one-count Indictments for conspiracy to commit wire fraud and mail fraud against the following individuals:
Suzanne W. Schmier, 42, of Glen Rock, NJ
Wesley S. Aldred, 26, of Palm Beach Gardens, FL
Kelsey E. Wagner, 25, of Delray Beach, FL
Roy E. Rock, 34, of Wilmington, NC
Theresa M Rafferty, 28, of Delray Beach, FL
Virginia S. Miller, 27, of Tequesta, FL
Bradley D. Kartman, 41, of Deerfield Beach, FL
Lev M. Derbaremdiker, 28, of Delray Beach, FL
David Brian Tibbs, 50, of Wytheville, VA
Michelle K. Krapac, 45, of Merrillville, INThese individuals were employees of C&G Marketing Associates, LLC, a Florida corporation which, in 2009, defrauded consumers across the continent using the fictitious name, Premier Timeshare Solutions (“PTS”). PTS telemarketers worked in an office building in West Palm Beach, Florida. From there, they placed phone calls to timeshare owners, falsely representing or implying that the company had found someone who wanted to buy the person’s timeshare. In exchange for an advance fee that typically exceeded $1,000, the PTS telemarketers promised to handle all the details of the sale and send the victims the proceeds after closing. Once the victims had paid the advance fee, however (usually by giving the telemarketer their credit card information), the fraudulent company simply pocketed the money. There were no interested buyers, the closings did not occur, and the timeshares were not resold.
Victims who called PTS to check on the status of their transactions were directed to customer service representatives, managed by Jose Goyos, whose goal was to perpetuate the fraud by delaying and discouraging chargebacks and complaints. To accomplish that goal, representatives would lie to victims, assuring them that despite some phony, unexpected delay, their timeshare unit was still going to be sold. Repeat callers were given a series of bogus excuses, none of which had any basis in fact. By instilling a false sense of hope, PTS aimed to delay the chargeback process beyond the time that most credit card issuers allow for disputes. Goyos was indicted in September 2013 and sentencing to 96 months of imprisonment on May 2, 2014.
Several others have been charged in connection with PTS and two defendants have pled guilty. During a recent sentencing of Goyos, the Honorable David R. Herndon, Chief Judge of the United States District Court for the Southern District of Illinois, called timeshare resale fraud an industry that recruits recovering drug addicts to steal from the financially vulnerable – “the most despicable scam in the world.”
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge and is entitled to a fair trial at which the Government must prove guilt beyond a reasonable doubt.
United States Attorney Wigginton again warned the public: “I urge all consumers to follow this tried and true advice: if you get a call from someone you do not know and trust, promising something that sounds too good to be true, it is a scam. Hang up. Then, please report the call to the proper authorities.”
This prosecution is one of nearly 50 timeshare resale fraud prosecutions brought in the Southern District of Illinois over the past four years. The case is part of an ongoing investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service, the Florida Attorney General’s Office and the Florida Department of Agriculture. The prosecution of the cases is being handled by Special Assistant United States Attorney Michael Hallock and Assistant United States Attorney Liam Coonan.
Tampa Couple Sentenced to Federal Prison for String of Bank RobberiesRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington sentenced Cara Lee Williams (29, Tampa) yesterday to 5 years in federal prison for conspiracy to obstruct, delay, or affect commerce by robbery. On May 14, 2014, U.S. District Judge Elizabeth A. Kovachevich sentenced Immanuel Lee Williams (29, Tampa) to 5 years and 10 months in federal prison for the same charge. Both were ordered to pay restitution in the amount of $55,526.00 to the victim financial institutions and to forfeit $48,476.25 in proceeds obtained during the conspiracy. The Williamses pleaded guilty on January 21, 2014.
According to court documents, the Williamses conspired to rob federally insured financial institutions between December 2012 and November 2013. During that period, they carried out 15 bank robberies in the Middle District of Florida and in Alabama. As part of the scheme, Cara Lee Williams prepared demand notes and acted as the get-away driver for her husband, Immanuel Lee Williams, who would enter the bank and pass the note to the teller. The note typically indicated that the perpetrator possessed a gun. For one of the robberies, the roles were reversed and Cara Lee Williams entered the bank and passed the demand note to the teller, while her husband waited outside in the get-away vehicle. The Williamses used the proceeds from the robberies to pay bills and gamble at casinos. They were apprehended on November 7, 2013.
This case was investigated by the Federal Bureau of Investigation, Tampa Police Department, Polk County Sheriff’s Office, Hillsborough County Sheriff’s Office, Auburndale Police Department, Lee County Sheriff’s Office, Sumter County Sheriff’s Office, Orange County Sheriff’s Office, and Ocala Police Department. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
Stockton Man Is Sentenced to More Than 11 Years in Prison for Conspiring to Rob A “Stash House”Read the Press Release
SACRAMENTO, Calif. — Rathanak Van, 28, of Stockton, was sentenced on Thursday by United States District Judge Morrison C. England Jr. to 11 years and three months in prison for conspiring to commit a robbery and conspiring to possess with intent to distribute more than five kilograms of cocaine, United States Attorney Benjamin B. Wagner announced.
According to court documents, from December 4, 2012 through February 13, 2013, Van agreed to lead in the planning of robbery of a “stash house”— a residence in Stockton where he and other members of the conspiracy believed that individuals were holding a large quantity of cocaine. Van was arrested before he could follow through with the planned robbery.
This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stockton Police Department. Assistant United States Attorney Paul Hemesath prosecuted the case.
"As the federal agency charged with fighting violent crime ATF is committed to working with our local partner the Stockton Police Department to bring to justice those who commit these violent acts," said Bureau of Alcohol, Tobacco, Firearms and Explosives, Special Agent in Charge Joseph M. Riehl. "Today’s sentencing removes another criminal who was willing to participate in committing an armed robbery and subject the public to danger.”
Two of Van’s alleged co-conspirators have been sentenced, and another co-defendant is awaiting further court proceedings.
This case is the product of “Operation Gideon IV,” an ATF initiative targeting violent criminals and criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into some of the most violent criminals in Stockton and surrounding areas. As a result of this partnership, 52 federal defendants were charged and 19 state prosecutions. The operation also resulted in the seizure of 84 firearms, 36 pounds of methamphetamine, and 21 pounds of marijuanaShrewsbury Man Pleads Guilty to Social Security FraudRead the Press Release
BOSTON - A Shrewsbury man pleaded guilty in U.S. District Court in Worcester today to taking $57,948 in Social Security payments to which he was not entitled.
George Bergstrom, 60, pleaded guilty to theft of public money. Earlier this month, Bergstrom was charged in a felony information. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for August 20, 2014.
In 2009, Bergstrom’s mother died, but her Social Security payments continued to be directly deposited into a joint bank account in her name and Bergstrom’s name. From 2009 to 2013, Bergstrom continued to receive and spend his deceased mother’s benefits of more than $1,100 per month. The payments should have ceased upon the death of Bergstrom’s mother and he was not entitled to receive this money.
United States Attorney Carmen M. Ortiz and Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Sentencing for May 16 - 19, 2014Read the Press Release
Angel Diaz-Hernandez, 27, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 19, 2014, for illegal re-entry of a previously deported alien into the United States. Diaz-Hernandez was arrested in Jackson, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
Christian Alberto Zamorano-Duran, 27, of Mexico, was sentenced by Federal District Court Judge Alan B. Johnson on May 19, 2014, for illegal re-entry of a previously deported alien into the United States. Zamorano-Duran was arrested in Casper, Wyoming. He received time served, plus 10 days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
James Hibbler, 59, of Casper, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on May 19, 2014, for possession of child pornography. Hibbler was arrested in Casper, Wyoming. He received 120 months imprisonment, to be followed by a life-term of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Anthony Trujillo, 28, of Westminster, Colorado, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on May 16, 2014, for conspiracy to possess with intent to distribute, and to distribute, between 350-500 grams of a mixture or substance containing a detectable amount of methamphetamine. Trujillo was arrested in Westminster, Colorado. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Royal Oak Man Pleads Guilty to Role InScheme to File False Tax Returns UsingStolen IdentitiesRead the Press Release
A resident of Royal Oak, Michigan, pleaded guilty today to his involvement in a scheme to file fraudulent tax returns with the Internal Revenue Service, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Shane Bateman, 42, entered the guilty plea before U.S. District Judge Gershwin Drain.
According to court records, from September 2011 through April 2012, Bateman obtained mailing addresses and personally identifiable information of numerous individuals and provided the information to others, who used the information to prepare and file false tax returns with the Internal Revenue Service. The returns requested tax refunds, and the refunds were loaded onto Turbo Tax Visa debit cards. Bateman and others used the cards at ATMs in the Detroit area to collect cash via ATM withdrawals. Bateman’s cash withdrawals totaled approximately $186,000. The entire scheme involved approximately 180 false tax returns, some using stolen identities. The returns requested a total of approximately $1.7 million in refunds.
“Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers,” said IRS Criminal Investigation Acting Special Agent in Charge Carolyn Weber. “Investigating refund fraud and identity theft remains a top priority for IRS.”
Bateman’s sentencing was set for October 2. The crime to which he pleaded guilty carries a maximum term of imprisonment of ten years and a fine of $250,000. In addition, Bateman will be required to pay restitution to the IRS in the amount of $185,828.
The case was investigated by special agents of the IRS Criminal Investigation Division and is being prosecuted by Assistant U.S. Attorney Stephen Hiyama.
Rosebud Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rosebud, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Jeremy Iron, age 29, was indicted on May 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 21, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 16, 2014, Iron assaulted the victim with a dangerous weapon, that is, shod feet, and the assault resulted in serious bodily injury to the victim.
The charge is merely an accusation and Iron is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Iron was released to a third party custodian pending trial. A trial date has not been set.
Rapid City Man Charged with Failure to Register as A Sex OffenderRead the Press Release
United States Attorney Brendan V. Johnson announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Kermit Oris Bear Stops, age 52, was indicted on November 14, 2013. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 21, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum period of at least 5 years of supervised release, and a mandatory $100 special assessment to the Federal Crime Victims Fund will be assessed. Restitution may also be ordered.
The Indictment alleges that between September 8, 2013, and November 13, 2013, Bear Stops knowingly failed to register and update his registration.
The charge is merely an accusation and Bear Stops is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Bear Stops was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for July 15, 2014.
Parmelee Man Charged with AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Matthew Horned Eagle, age 24, was indicted on May 13, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 21, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 7, 2014, Horned Eagle assaulted two victims with a dangerous weapon, that is, a sword, and the assault resulted in serious bodily injury to both victims.
The charge is merely an accusation and Horned Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Horned Eagle was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Nine Individuals Charged with Stealing Approximately $1.4 Million as A Result of Operation TombstoneRead the Press Release
Jacksonville, Orlando, and Ocala, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of nine separate indictments charging individuals with stealing approximately $1.4 million in federal benefits to which they were not entitled. The penalty for stealing federal benefits is up to ten years in federal prison per count. These nine Middle District of Florida cases arose as the result of Operation Tombstone, an operation initiated and overseen by the Social Security Administration, Office of Inspector General and the investigative work of Special Agents with multiple Offices of Inspectors General of various federal agencies and departments. Currently, 73 federal offices of inspectors general exist under the Inspector General Act of 1978. The offices employ special agents (criminal investigators) and auditors. Their activities include the detection and prevention of fraud, waste, abuse, and mismanagement of the government programs and operations within their parent organizations.
Linda Sue Bellamy (60, Jacksonville) is charged with one count of stealing government property. According to the indictment returned in her case, between October 2005 and October 2013, Bellamy stole approximately $62,518 of government benefits from the Social Security Administration.
According to the indictment returned in her case, Sonia Destine Casbar (57, Ocala) is charged with one count of stealing government property. The indictment alleges that between May 2010 and July 2013, Casbar stole approximately $45,111 of government benefits from the Social Security Administration.
Angela Ann Driggers (53, Callahan) is charged with four counts of stealing government property. The indictment in her case alleges that between April 2005 and December 2013, Driggers stole approximately $131,078.32 of government benefits from the Social Security Administration and the Federal Medicaid Health Care Benefit Program.
According to the indictment returned in her case, Adriyanna Herdener (37, Melbourne) is charged with one count of stealing government property and one count of social security fraud. The indictment alleges that between April 2005 and December 2013, Herdener stole approximately $21,712 of government benefits from the Social Security Administration. Herdener faces a maximum penalty of 10 years in federal prison for stealing government property, and up to 5 years in federal prison for the fraud charge.
According to the indictment returned in her case, Camilla Ann Winterling (57, Liberty Township, Ohio) is charged with four counts of stealing government property. The indictment alleges that between April 1993 and February 2014, Winterling stole a total of approximately $472,788.64 of government benefits from the Social Security Administration and the Department of Veterans Affairs.
Sandra McCray (57, Jacksonville) is charged with two counts of stealing government property. Between July 8, 1995 and February 2014, McCray allegedly stole approximately $142,724.00 of government benefits from the Social Security Administration.
According to the indictment returned in his case, Rickey Nelson (60, Jacksonville) is charged with two counts of stealing government property. The indictment alleges that between April 1999 and March 2014, Nelson stole approximately $205,530.00 of government benefits from the Social Security Administration.
Steven Hutka (67, Jacksonville) is charged with one count of stealing government property. The indictment alleges that between April 1999 and March 2014, Hutka stole approximately $69,351.00 of government benefits from the Social Security Administration.
According to the indictment returned in his case, Daniel Ovshak (64, St. Johns) is charged with two counts of stealing government property. The indictment alleges that between July and December 2013, Ovshak stole approximately $267,701.00 of government benefits from the Social Security Administration.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
Agencies conducting these investigations included the Social Security Administration, Office of Inspector General, the Veterans Administration, Office of Inspector General, the Department of Health and Human Services, Office of Inspector General, and the United States Secret Service. The cases will be prosecuted by Assistant United States Attorneys throughout the Middle District of Florida, including Robert Bodnar, Jackson Boggs, Mac Heavener, and Jay Taylor.