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Thursday 3 April 2014
St. Albans Meth Dealer Pleads GuiltyRead the Press Release
CHARLESTON, W.Va. – A St. Albans, W.Va. man pleaded guilty today to a federal drug charge, announced U.S. Attorney Booth Goodwin. Alva Osborne, 46, pleaded guilty in federal court in Charleston to distributing methamphetamine. As part of the plea, Osborne admitted that on four separate occasions from November of 2012 through December of 2013, he sold quantities of methamphetamine to a confidential informant working with the Metropolitan Drug Enforcement Network Team. Osborne also admitted that he distributed large quantities of methamphetamine to other individuals who were not cooperating with law enforcement. Osborne faces up to 20 years in federal prison when he is sentenced on July 21, 2014.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team and the Charleston Police Department. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
Six Arrested in Multiple Drug/Firearms IndictmentsRead the Press Release
LAREDO, Texas – Three separate indictments have been partially unsealed following the arrest of six Laredo residents on a variety of charges including methamphetamine and/or cocaine trafficking and felon in possession of a firearm, announced United States Attorney Kenneth Magidson.
A grand jury returned three sealed indictments on Feb. 18, 2014. The first alleges that a drug trafficking organization had been transporting 50 grams or more of methamphetamine since January 2013. The organization allegedly coordinated the transportation, delivery and distribution of multi-ounce quantities of methamphetamine and heroin to San Antonio. Transporters for the organization allegedly concealed the drug by taping it to their bodies or hiding it within a vehicle. Personal use amounts of the drugs were distributed in the greater-Laredo area, according to the charges. Santos Arturo Ortiz, 27, Kenneth John Swisher, 56, Armando Bautista Jr., 28, and Alan Salinas, 27, all of Laredo, were arrested today for their alleged roles in that conspiracy.
Also taken into custody today was Agustin Zuniga, 37, of Laredo. He is charged in the second partially unsealed indictment with conspiracy and possession with the intent to distribute cocaine.
The third indictment unsealed today alleges Jose Casarez, 33, of Laredo, was a felon in possession of a firearm.
Four of the six arrested today are expected to make their initial appearances before U.S. Magistrate Judge Diana Song Quiroga, at which time the government expects to request their detention pending further criminal proceedings. Ortiz and Bautista were taken into custody in San Antonio and Dallas, respectively. They will make initial appearances there and are expected to be transported to Laredo in the near future.
For the methamphetamine conspiracy, Ortiz, Swisher, Bautista and Salinas face a mandatory minimum sentence of 10 years and up to life in in prison and a possible $10 million fine. Zuniga faces up to 20 years in federal prison and a possible $1 million fine, if convicted of the charge he faces, while Cesarez will face up to 10 years in prison and a $250,000 fine, upon conviction.
The cases are the result of an investigation led by the Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Elizabeth Rabe is prosecuting.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Sentencing for March 20 - April 2, 2014Read the Press Release
Francisco Hernandez-Marquez, 29, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 2, 2014, for conspiracy to possess with intent to distribute, and to distribute between 500 grams and 1.5 kilograms of a mixture or substance containing a detectable amount of methamphetamine and for distribution of methamphetamine and aiding and abetting. Hernandez-Marquez was arrested in Rock Springs. He received 57 months imprisonment, to be followed by five years of supervised release and was ordered to pay a $300.00 fine and a $200.00 special assessment. Hernandez-Marquez is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Rosendo Campos, 19, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 1, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine and for conspiracy to launder money. Campos was arrested in Rock Springs, Wyoming. He received 120 months imprisonment, to be followed by seven years of supervised release, and was ordered to pay a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Manuel de Jesus Hernandez-Marquez, 20, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on April 1, 2014, for conspiracy to possess with intent to distribute, and to distribute at least 200 grams or more of a mixture or substance containing a detectable amount of methamphetamine and for distribution of methamphetamine and aiding and abetting. Hernandez-Marquez was arrested in Rock Springs. He received 57 months imprisonment, to be followed by three years of supervised release and was ordered to pay a $200.00 special assessment. Hernandez-Marquez is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Anthony Nield, 40, of Auburn, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on April 1, 2014, for conspiracy to possess with intent to distribute, and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Nield was arrested in Kemmerer, Wyoming. He received 57 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.Brendan Dane Schweigart, 28, of Andover, New York, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 31, 2014, for interstate travel with intent to engage in illegal sexual acts with a minor. Schweigart was arrested in Hulett, Wyoming. He received 42 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force.
Deborah Dawn Hill, 49, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 28, 2014, for fraud using an access device of another. Hill appeared pursuant to a summons. She received 37 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $718,350.53. This case was investigated by the U.S. Secret Service, the Federal Bureau of Investigation and the Internal Revenue Service.
Gabriel Martinez-Illesca, 47, of Rock Springs, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 20, 2014, on one count of conspiracy to possess with intent to distribute, and to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine; one count of distribution of methamphetamine; and one count of use of a telephone facility to facilitate a felony drug offense. Martinez-Illesca was arrested in Rock Springs. He received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 special assessment. Martinez-Illesca is subject to deportation upon release from custody. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Ramah Navajo Man Pleads Guilty to Aggravated Sexual Abuse of Navajo TeenagerRead the Press Release
ALBUQUERQUE – Sabastiano Coho, 24, a member of the Ramah Chapter of the Navajo Nation, pleaded guilty yesterday afternoon to an aggravated sexual assault charge under a plea agreement with the U.S. Attorney’s Office.
Coho was arrested on Feb. 18, 2011, on a criminal complaint charging him with aggravated sexual abuse and subsequently indicted on March 9, 2011. According to court filings, Coho sexually assaulted the victim, a 19-year-old Navajo woman, on Jan. 25, 2011, in a location within the Navajo Indian Reservation in Cibola County, N.M. Proceedings in the case were delayed as a result of competency evaluations.
In entering his guilty plea, Coho admitted to engaging in a sexual act, by using force, with the victim on Jan. 25, 2011.
Coho has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. Under the terms of the plea agreement, Coho will be sentenced to 50 months in federal prison followed by a term of supervised release to be determined by the court. Coho also will be required to register as a sex offender.
This case was investigated by the Gallup office of the FBI and the Navajo-Ramah Tribal Police Department and is being prosecuted by Special Assistant U.S. Attorney David Adams. It was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Port Arthur Man Indicted on Federal Income Tax Evasion ChargesRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 44 year-old Port Arthur, Texas man has been indicted for income tax evasion, announced U.S. Attorney John M. Bales today.
Theodore Paul Victor, Jr., was indicted on April 2, 2014, and charged with four counts of failing to report taxable income during the calendar years 2007 through 2010. Victor is accused of failing to report taxable income in excess of $361,000, leaving him with a tax liability of over $69,000.
If convicted, each count carries a maximum statutory penalty of five years in federal prison and a $250,000 fine. In addition, restitution could be ordered.The case is being investigated by the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorney John B. Ross and Special Assistant U.S. Attorney Catherine Cockrell.
It is important to note that an indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
####Owners of Popular Ocean City, N.J., Pizza Restaurants Arrested, Face Indictment Charging Tax and Structuring CrimesRead the Press Release
CAMDEN, N.J. - The owners of popular Ocean City, N.J., restaurant chain Manco & Manco Pizza were arrested this morning at their Somers Point, N.J., home by IRS-Criminal Investigation special agents on an indictment charging the couple with multiple counts of tax evasion and other offenses, U.S. Attorney Paul J. Fishman announced.
Charles Bangle, 54, and his wife Mary Bangle, 53, face a 30-count indictment charging the couple with one count of conspiracy to evade income taxes, five counts of income tax evasion for 2007 through 2011, and one count of making false statements to the IRS. Charles Bangle is also charged with 23 counts of structuring financial transactions to avoid reporting requirements.
The Bangles are scheduled to appear on the charges this afternoon before U.S. Magistrate Judge Ann Marie Donioin Camden federal court.
According to the indictment unsealed today:
Manco & Manco Pizza – formerly Mack & Manco – is an iconic restaurant located in the heart of the Ocean City’s Boardwalk and maintains three stores on the Boardwalk and one store in Somers Point. Charles and Mary Bangle were employees of Mack & Manco Pizza until they purchased a controlling interest in 2011. Charles Bangle handled the day-to-day operations of the business and Mary Bangle was responsible for handling cash and payroll.
Between 2007 and 2011, Charles and Mary Bangle skimmed large sums of cash from the business. Charles Bangle deposited significant amounts of that cash into their personal bank account at TD Bank in amounts less than $10,000, the amount which triggers a Currency Transaction Report from financial institutions to the U.S. Department of Treasury.
The Bangles then used the money to pay for personal expenditures. They concealed approximately $981,000 in income from the IRS, which they had a legal obligation to report on their personal income tax returns. Had they accurately reported all their income to the IRS, the Bangles would have owed an additional $336,273.
The Bangles claimed the deposits into their personal checking account were from cash salary earned at the pizza business.
Each of the 30 counts of the indictment carries a maximum potential penalty of five years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation.
The government is represented by Assistant U.S. Attorneys Jason M. Richardson and Matthew T. Smith of the U.S. Attorney's Office Criminal Division in Camden, as well as Assistant U.S. Attorney Peter W. Gaeta of the office’s Asset Forfeiture Unit.14-117
Defense counsel:
Charles Bangle: Vincent Sarubbi Esq., Haddonfield, N.J.
Mary Bangle: TBDBangle, Charles and Mary Indictment
Opiate Abuse Prevention Video "equal Opportunity Destroyer" Receives Prestigious Telly AwardRead the Press Release
U. S. Attorney Booth Goodwin and Huntington Police Chief W. H. “Skip” Holbrook are pleased to announce that the opiate abuse prevention film, "Equal Opportunity Destroyer" or "E.O.D." has received a prestigious bronze Telly award. With nearly 12,000 entries from all 50 states and numerous countries, this is truly an honor.
The "EOD" video includes interviews with recovering addicts, treatment professionals and others with the aim of laying out the real-life risks and consequences of opiate prescription drug and heroin use. The educational video was developed through a partnership between the U. S. Attorney’s Office for the Southern District of West Virginia and the Huntington Police Department. It was funded by a grant from the West Virginia Division of Justice and Community Services and produced by Trifecta Productions, LLC,U.S. Attorney Booth Goodwin praised the work of Trifecta Productions. "The folks at Trifecta did a remarkable job of capturing the power of the real life stories in a film that hits hard on the message that opiate abuse and its tragic consequences can happen to anyone. It is our hope that some of the young people who view the video will make better decisions regarding opiates and other drugs."
The video can be viewed on the website of the U.S. Attorney's Office, SDWV, at http://www.youtube.com/user/USAOSDWV, the EOD website at www.eodwv.com or the WV Safe Schools website at www.wvsafeschools.com.
If you would like to arrange for U.S. Attorney Booth Goodwin to speak to your school or community group and present the film, please call 304-345-2200.(Click this link for a photograph of Joe Murphy, Trifecta Productions, LLC (left) and Chief W. H. “Skip” Holbrook (right) with the Telly Award.)
Omaha Woman Convicted of Being a Felon in Possession of AmmunitionRead the Press Release
United States Attorney Deborah R. Gilg announced that following a three day jury trial, Lori Jenkins, age 47 of Omaha, was found guilty by a federal jury of two counts of being a felon in possession of ammunition. Each count is punishable by up to ten years in prison and a fine of up to $250,000, followed by a term of supervised release of up to three years. The Honorable Laurie Smith Camp, Chief Judge of the United States District Court, presided over the trial. Ms. Jenkins remains in custody pending sentencing, which is scheduled for June 30, 2014 before Chief Judge Smith Camp.
This case was investigated by the Douglas County Sheriff’s Office and the Omaha Police Department.
Non-Indian Man from Santa Fe Pleads Guilty to Embezzling Money Belonging to San Ildefonso PuebloRead the Press Release
ALBUQUERQUE – Ramiro R. Flores, 60, of Santa Fe, N.M., pleaded guilty today to embezzling $42,856 from San Ildefonso Pueblo under a plea agreement with the U.S. Attorney’s Office.
Flores, who is a non-Indian, was indicted on Oct. 30, 2013, and charged with six counts of embezzlement from an Indian tribal organization. According to the indictment, Flores embezzled $42,856 from San Ildefonso Pueblo between June 2011 and Feb. 2012. At the time, Flores was employed as the program director for the Pueblo’s Parks and Wildlife Program.
Today Flores pleaded guilty to a misdemeanor information charging him with six counts of embezzlement, and admitted embezzling money from San Ildefonso Pueblo.
Under the terms of his plea agreement, Flores will be required to pay restitution to the Pueblo in an amount to be determined by the court. Flores also will be sentenced to a term of probation to be determined by the court.
The case was investigated by the Santa Fe office of the FBI and is being prosecuted by Assistant U.S. Attorney Jon K. Stanford.
New London Heroin Dealer Sentenced to More Than Six Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that EDDIE RODRIGUEZ, also known as “Joel,” 30, of New London, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 77 months of imprisonment, followed by four years of supervised release, for distributing heroin.
In early 2012, Homeland Security Investigations (“HSI”), the U.S. Secret Service and the New London Police Department initiated an investigation to combat the large-scale trafficking of heroin and cocaine from the Dominican Republic and Puerto Rico into and around southeastern Connecticut. The investigation revealed that Luis Ariel Capellan Maldonado, also known as “Ariel,” and his associates were receiving heroin from sources in the Dominican Republic and distributing it throughout New London County. RODRIGUEZ purchased heroin from Maldonado’s associate and sold the drug to his own customers.
RODRIGUEZ has been detained since his arrest on April 3, 2013. On January 2, 2014, he pleaded guilty to one count of conspiracy to possess with the intent to distribute 100 grams or more of heroin.
RODRIGUEZ has several prior felony convictions.
More than 100 individuals have been charged with federal and state offenses as a result of this investigation. Maldonado has pleaded guilty and awaits sentencing.
This matter is being investigated by Homeland Security Investigations; U.S. Secret Service; U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Customs and Border Protection, Office of Air and Marine; Connecticut State Police; New London Police Department, Norwich Police Department, Waterford Police Department, Groton Town Police Department, East Lyme Police Department and Putnam Police Department. The United States Marshals Service; ICE Enforcement and Removal Operations; Drug Enforcement Administration; HSI Assistant Attaché, Santo Domingo, Dominican Republic; HSI Arecibo, Puerto Rico Resident Office; Internal Revenue Service – Criminal Investigation; Connecticut Department of Correction, Parole and Community Services; and the Groton City, Willimantic, New Haven and Bristol Police Departments have provided valuable assistance to the investigation.
The federal case is being prosecuted by Assistant United States Attorneys Alina P. Reynolds, Sarah P. Karwan and Henry K. Kopel. The state cases are being prosecuted by the State’s Attorney for the New London Judicial District and Senior Assistant State’s Attorneys Paul Narducci and Stephen Carney.
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[email protected]New Jersey Woman Charged with Bilking Non-ProfitRead the Press Release
Rochelle Biesenthal, 64, of Brigantine, New Jersey, was charged today by information with one count of wire fraud and three counts of tax evasion in connection with an alleged scheme to defraud the Jewish Heritage Programs (“JHP”), a non-profit corporation based in Philadelphia, announced United States Attorney Zane David Memeger.
According to the information, Biesenthal carried out the scheme between 2002 and April 2009, while employed as a bookkeeper at JHP. She allegedly prepared and issued checks, made payable to her, drawn on JHP’s bank accounts. It is further alleged that Biesenthal fraudulently authorized electronic debits from JHP’s bank accounts to pay for her personal credit cards and her family’s personal credit cards. As part of the scheme, it is alleged that she defrauded JHP of a total of over $400,000. In addition, according to the information, she never reported her unauthorized income in her tax returns in tax years 2007 through 2009 and concealed the true sources of her income.
If convicted the defendant faces a maximum possible sentence of 35 years in prison, a three-year period of supervised release, a fine of up to $1 million, and a $400 special assessment.The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations. It is being prosecuted by Assistant United States Attorney Sozi Pedro Tulante.
Click here to view the indictment
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Navajo Man Sentenced to Sixty-Three Months in Federal Prison for Assaulting a Kewa Pueblo Woman and Abusing two Children on Nambe PuebloRead the Press Release
ALBUQUERQUE – Everett D. Williams, 26, an enrolled member of the Navajo Nation who resides in Nambe Pueblo, N.M., was sentenced today to 63 months in federal prison followed by three years of supervised release for his conviction on assault and child abuse charges.
Williams was arrested in March 2013, based on a criminal complaint charging him with assaulting his intimate partner with a hammer and causing her to sustain serious bodily injury. In April 2013, Williams was indicted and charged with one count of assault resulting in serious bodily injury, one count assault with a deadly weapon, and two counts of child abuse. According to court filings, Williams assaulted the victim, a Kewa Pueblo woman, and endangered the health of two toddlers on Feb. 23, 2013, in a residence located on Nambe Pueblo.
On July 3, 2013, Williams entered a guilty plea to all four counts of the indictment and admitted to striking the victim in the head with a hammer and causing her serious bodily injury. Court filings indicate that the victim required surgery to treat a gaping wound on her forehead. While swinging the hammer at the victim, Williams missed the victim and instead struck a three-year-old child in the back. While attempting to hit the victim with his fist, Williams struck a two-year-old child above the eye.
This case was investigated by the Northern Pueblos Agency of the BIA’s Office of Justice Services and was prosecuted by Special Assistant U.S. Attorney David M. Adams. The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project which is sponsored by the Justice Department’s Office on Violence Against Women, and seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Milwaukee Man Sentenced to Life in Prison for Transporting Minors Across State Lines for ProstitutionRead the Press Release
A man who transported two minor girls from Milwaukee, Wisconsin to Iowa for purposes of having them engage in prostitution was sentenced today to life in prison without the possibility of parole.
Robert Jackson, age 32, from Milwaukee, Wisconsin, received the prison term after a November 5, 2013, guilty plea to one count of transporting minors across state lines with the intent to engage in criminal sexual activity.
At the guilty plea hearing, Jackson admitted that on July 16, 2013, he transported two females from Milwaukee, Wisconsin, to Cedar Rapids, Iowa, for the purpose of having them engage in prostitution. The girls were each under 18 years of age at the time.
At the sentencing hearing, the government proved one girl was 15 years old, and the other 17 years old, at the time of the offense. The evidence showed that Jackson threatened to kill the 15 year-old child and her family if she ever attempted to leave him. On one occasion when both girls left him for a time, Jackson beat the 15 year-old with a belt and raped her, and beat the 17-year-old in her face with his fists. Jackson had both girls engage in prostitution in Milwaukee and Iowa, and kept the money they earned. The evidence further showed that he coerced by threats and force both girls to travel to Iowa for purposes of prostitution. The evidence disclosed that Jackson later bragged to other inmates about using force and sexual abuse of the girls to keep them in line and control them as his prostitutes.
Jackson was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Jackson was sentenced to life in prison. A special assessment of $100 was imposed. There is no parole in the federal system.
“This defendant preyed on vulnerable young girls and exploited them for prostitution,” said United States Attorney Kevin W. Techau. “The underground nature of human trafficking makes it hard to fight and it can be especially dangerous for young people and disadvantaged kids in both big cities and rural areas. The U.S. Attorney’s Office for the Northern District of Iowa is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
Jackson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney C.J. Williams and was investigated by the Johnson County Sheriff’s Office, the Iowa Division of Intelligence, and the Marion Police Department, with the assistance of the Milwaukee Human Trafficking Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-cr-0063.
Maryland Man Charged with Insider Trading ConspiracyRead the Press Release
Defendant Netted over $650,000 in Illegal Profits from College Friend’s Insider “Tips”
CHARLOTTE, N.C. – A Maryland man who received insider “tips” of confidential trading information from his college friend, John Femenia, has been charged with insider trading conspiracy, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division joins U.S. Attorney Tompkins in making today’s announcement.
The charges against Walter Donald Wagner, 33, of Rockville, Md. stem from “Operation Insider Out,” an FBI investigation into insider trading activities in the Charlotte area. The investigation, which began in early 2012, has resulted in the prosecution of nine other conspirators involved in the illegal trading ring, five of which have already been sentenced, and all of whom have pleaded guilty. John Femenia, who orchestrated the conspiracy, and three other conspirators are awaiting sentencing. According to filed court documents, Femenia was an investment banker with Wells Fargo, who lived in Charlotte and later in New York. Court documents indicate that from March 2010 through December 2012, Femenia stole material nonpublic information from Wells Fargo and its clients about potential and upcoming mergers and acquisitions. Femenia and Wagner were college friends, and around April 2012 Femenia recruited Wagner to participate in the insider trading conspiracy. Court records show that Femenia tipped off Wagner and other conspirators about upcoming mergers, who then traded on that information. Court records reflect that when one of the mergers went through and news of the merger became public, the company’s stock price increased by 64% and the conspirators collectively realized over $7.5 million in profits. Wagner specifically made over $650,000 in profit from the fraudulent insider tips he received from Femenia.
A criminal bill of information filed today in U.S. District Court charges Wagner with one count of insider trading conspiracy. Wagner has agreed to plead guilty to the charge and will appear in U.S. District Court to formally accept the plea when the hearing is scheduled. At sentencing, Wagner faces a maximum prison term of five years and a $250,000 fine for the conspiracy to commit insider trading offense.
In December 2012, a separate criminal indictment charged John W. Femenia, Sawn C. Hegedus, Danielle C. Laurenti, Matthew J. Musante, Aaron W. Wens, Roger A. Williams, Kenneth M. Raby, Frank M. Burgess, Jr. and James A. Hayes for their involvement in the insider trading conspiracy. Femenia, Hegedus, Laurenti and Musante have pleaded guilty and are awaiting sentencing. The remaining five defendants have been already sentenced:
• Roger A. Williams, was sentenced in January 2014 to 24 months in prison and one year of supervised release. • Kenneth M. Raby, was sentenced in January 2014 to 18 months in prison and one year of supervised release. • Frank M. Burgess, Jr., was sentenced in January 2014 to six months in prison, six months of home detention, and one year of supervised release. • Aaron M. Wens,was sentenced in February 2014 to six months in prison, six months of home detention, and one year of supervised release. • James A. Hayes, Jr., was sentenced in January 2014 to one year of probation with a condition of eight months home detention.
In a related action today, the United States Securities & Exchange Commission filed civil charges against Wagner in federal court in Charlotte. U.S. Attorney Tompkins thanked the U.S. Securities & Exchange Commission, Division of Enforcement for its assistance in this investigation.
Operation Insider Out in the Western District of North Carolina is being handled by the Charlotte Division of the FBI. The prosecution for the government was handled by Assistant United States Attorney Kurt W. Meyers.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
Major Drug Trafficker Found Guilty in Manhattan Federal Court of Two Murder-For-Hire Conspiracies, Attempted Murder, Narcotics and Firearms OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ROGER KEY, a/k/a “Luchie,” a violent and large-scale drug trafficker who operated in Manhattan and the Bronx, New York, was found guilty yesterday in Manhattan federal court of two murder-for-hire conspiracies, attempted murder, and narcotics and firearms offenses. KEY was convicted following a three-week jury trial before U.S. District Judge Sidney H. Stein.
Manhattan U.S. Attorney Preet Bharara said: “With this verdict, the jury has done a great service to the citizens of New York City, convicting Roger Key of numerous violent offenses, including murder-for-hire, and orchestrating a sprawling drug trafficking network. I want to again thank New York County District Attorney, Cyrus Vance and his office, who began the investigation into this alleged narcotics crew and shared the fruits of their investigation with our Office, enabling us to build this case and bring this defendant to justice.”
According to court documents and the evidence presented at trial:
From 2009 through September 2012, KEY was one of the most significant narcotics distributors operating in New York City. KEY supplied powder cocaine and crack cocaine to various drug organizations operating in Manhattan and the Bronx. KEY also used, carried, and possessed firearms during the narcotics conspiracy.
In September 2010, KEY conspired to commit the murder-for-hire of Terry Harrison, who was shot and killed on September 10, 2010, at 681 Courtlandt Avenue in the Bronx. KEY paid another co-conspirator for committing the murder of Harrison, who was the leader of a rival drug-trafficking crew with whom KEY and his co-conspirators were engaged in a violent conflict over drug-trafficking territory in the Bronx.
From October 2011 through December 2011, KEY conspired to commit the murder-for-hire, and aided and abetted the attempted murder-for-hire of Matthew Allen on November 16, 2011, which resulted in the non-fatal shooting of another victim, at 302 Brooklyn Avenue, Brooklyn, New York.
KEY was convicted of narcotics conspiracy, conspiracy to commit the murder-for-hire of Matthew Allen, the attempted murder-for-hire of Matthew Allen, conspiracy to commit the murder-for-hire of Terry Harrison, and firearms possession and use in connection with both the narcotics conspiracy and the Matthew Allen murder plot. KEY was acquitted of the murder-for-hire of Terry Harrison, murder in connection with a drug crime, and a firearms possession charge in connection with that murder.
KEY faces two mandatory sentences of life in prison without the possibility of parole, plus a mandatory consecutive term of 30 years in prison, and he will be sentenced by Judge Stein on August 19, 2014. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
KEY is the last of 18 defendants originally charged in this case to be convicted in proceedings before Judge Stein. KEY is also the last of a total of four individuals who have been convicted of offenses relating to the conspiracy to commit the murder-for-hire and the attempted murder-for-hire of Matthew Allen.
Mr. Bharara praised the outstanding work of the Federal Bureau of the Investigation, Westchester County Violent Crimes Task Force, and the New York City Police Department, including the 40th Precinct Detective Squad and the Manhattan North Narcotics Major Case Unit, who conducted the investigation of the case. Mr. Bharara also thanked the New York County District Attorney’s Office, who provided critical assistance in the investigation and prosecution of the case.
This case is being overseen by the Office’s Violent Crimes Unit. Assistant United States Attorneys Santosh Aravind, Abigail S. Kurland, and Adam Fee are in charge of the prosecution.
Lingerie Business Owner Pleads Guilty to BriberyRead the Press Release
ATLANTA – Jae Jun Bae has pleaded guilty to offering bribes to Doraville employees to obtain a zoning change for his business.
“Bae attempted to buy his way around certain zoning restrictions by offering bribes to Doraville employees,” said United States Attorney Sally Quillian Yates. “But, we all play by the same rules. As expected, those employees reported Bae’s conduct and, as a result, Bae has been brought to justice.”
J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office, stated: “While this case serves to remind us of those individuals so willing to violate the law at any level, it should also reaffirm a faith in our public servants who saw this for what it was and reported it to the proper authorities. The FBI will continue to dedicate significant investigative resources as we work with our various law enforcement partners in combating public corruption.”
“Doraville is thankful to be able to work in partnership with the FBI. Public corruption erodes the confidence and trust that our citizens have in our government officials and employees,” said Doraville Police Chief John King. “Doraville Police works tirelessly with the citizens and our partnering law-enforcement agencies to make sure that our city is free of corruption and filled with trust.”
According to United States Attorney Yates, the charges, and other information presented in court: Bae is the owner of Moon Lingerie, a lingerie business located in Doraville, Ga. In April 2012, Bae bought a commercial building located on Buford Highway in Doraville, Ga. At the time of the purchase, the property was zoned for retail use and could not be used as a wholesale location as Bae wanted. In August 2012, Bae met with an employee of the City of Doraville and attempted to give the employee an envelope of cash, in an effort to have the Buford Highway property re-zoned. The employee did not take the envelope and reported Bae’s attempt to local law enforcement authorities.
In October 2013, Bae asked to meet with a member of Doraville’s Community Development Department. Based on the allegations from August 2012, the staff member (“Staff Member”) reported Bae’s request for a meeting to law enforcement authorities and agreed to cooperate with them. Thereafter, the FBI and the Doraville Police Department conducted a series of undercover operations involving Bae. In particular, on October 17, 2013, Bae met with the Staff Member and an undercover officer (“UC”), who was posing member of Doraville’s Community Development Department. During the meeting, Bae agreed to pay approximately $100,000 to have the Buford Highway property re-zoned to permit wholesale uses. On October 18, 2013, Bae met with the UC and re-negotiated the price to obtain a wholesale re-zoning from $100,000 down to $70,000. On October 29, 2013, Bae made a $5,000 payment to the Staff Member as a deposit to get the Buford Highway property re-zoned. On the next day, Bae gave the UC a $3,000 payment, which the UC said would secure a vote in favor of Bae’s re-zoning application. On November 14, 2013, the FBI arrested Bae.
On December 3, 2013, Bae, 35, of Duluth, Ga., was indicted by a federal grand jury on charges of wire fraud and bribery. Today, Bae pleaded guilty to one count of honest services wire fraud. In determining Bae’s sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
The sentencing hearing is scheduled for June 30, 2014, at 10:00, before United States District Judge Thomas W. Thrash, Jr.
This case is being investigated by the Federal Bureau of Investigation and the Doraville Police Department.
Assistant United States Attorney Jeffrey W. Davis and Special Assistant United States Attorney Erin Sanders are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Lee's Summit Sex Offender Sentenced for Child PornRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., man who is a registered sex offender was sentenced in federal court today for possessing child pornography.
Thomas A. Shields, 45, of Lee’s Summit, was sentenced by U.S. District Judge Dean Whipple to 10 years in federal prison without parole.
On Sept. 16, 2013, Shields pleaded guilty to one count of possessing child pornography and one count of accessing the Internet with the intent to view child pornography.
According to court documents, Shields was contacted at his residence on March 4, 2011, by law enforcement officials as part of a sex offender compliance sweep. Shields is required to register as a sex offender due to his 1995 felony conviction for sodomy with a victim under the age of 14, for which he was sentenced to eight years in state prison. Officers noticed that he possessed a computer he had not properly registered as required by the state’s Sex Offender Registry and he was arrested.
Shields’s computer was seized, according to court documents, and an examiner located numerous images of child pornography on the computer, including prepubescent children, sadistic conduct, and bondage. The examiner also found evidence of child pornography movies that had been downloaded, viewed, then deleted. The forensic examiner located thousands of images that had been deleted from the computer.
This case was prosecuted by Assistant U.S. Attorney Teresa Moore. It was investigated by the Lee’s Summit, Mo., Police Department and the Jackson County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Lee County Man Sentenced to More Than Eight Years in Prison for Five North Alabama RobberiesRead the Press Release
BIRMINGHAM -- A federal judge today sentenced a Lee County man to eight years and four months in prison for a 2013 string of bank robberies in North Alabama, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.JIMMY DAWSON CUNNINGHAM JR., 39, of Salem, Ala., pleaded guilty in January to five bank robberies between Jan. 3, 2013, and Jan. 14, 2013. The banks robbed over those 12 days were: National Bank of Commerce, Shades Creek Parkway, Birmingham; PNC Bank, Euclid Avenue, Mountain Brook; First Community Bank, Marktplatz Center, Cullman; Regions Bank, Culver Road, Mountain Brook; and Union State Bank, Pelham Parkway, Pelham.
U.S. District Judge Inge P. Johnson sentenced Cunningham to prison and ordered him to pay $14,780 in restitution to the four banks that lost money in his robberies. Cunningham took money in all five robberies, but the money he robbed from First Community Bank in Cullman was recovered following the crime.
The FBI, in conjunction with the Jefferson County Sheriff's Office and the Mountain Brook, Cullman and Pelham police departments, investigated the case, which Assistant U.S. Attorney Joseph P. Montminy prosecuted.
Joint Federal-State Investigation charges 12 Milwaukee Residents with Dog FightingRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin and John T. Chisolm, Milwaukee County District Attorney announced today that 10 defendants were charged federally and 2 defendants were charged locally for engaging in animal fighting ventures. The five federal indictments identified a total of 23 dogs possessed by the defendants for the purpose of participating in and training for dog fighting. The defendants are charged with violations of either Title 7, United States Code, Section 2156(b) (buying, selling, delivering, possessing, training or transporting animals for participation in an animal fighting venture); or with violations of Title 18, United States Code, Section 371 (conspiracy to commit the aforementioned crime). All of the defendants are residents of Milwaukee, WI. The defendants’ federal charges are as follows:
No of Counts Defendant/Age Charges Penalties2
Tiana Arnold
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
Demetrius Boyce, 45
7 U.S.C. §2156(b)
For each count- 5 years, $250,000 fine, 3 years supervised release.
2
Alicia Brown, 40
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
2
Tyrone Lewis, 30
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
2
Cheryl Richards, 56
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
2
Gary Richards, 56
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
4
Terry Robinson, 35
18 U.S.C. §371
7 U.S.C. §2156(b); 18 U.S.C. §1952(a)(3)-interstate travel or transportation in aid of unlawful activityFor each count- 5 years, $250,000 fine, 3 years supervised release.
1
Emmitt Smith, 37
7 U.S.C. §2156(b)
5 years, $250,000 fine, 3 years supervised release.
2
William Walker, 31
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
2
Darry Wortham, 29
18 U.S.C. §371
7 U.S.C. §2156(b)For each count- 5 years, $250,000 fine, 3 years supervised release.
Two defendants are charged with violations of Wisconsin statutes, namely: Travis L. Hazlett (age 31) and Thomas Zollicoffer (age 24). Hazlett is charged in a four-count criminal complaint, including charges of Instigating Fights Between Animals and Mistreatment of Animals. Both Charges are Class I felonies with a maximum penalty each of 3 years and 6 months imprisonment, and a $10,000 fine. Zollicoffer is charged in a four-count criminal complaint with violations of the same statutes.
Today, law enforcement officials arrested nine of the charged defendants. One individual, William Walker is still at large. Law enforcement executed six federal search warrants, whereupon they recovered 22 live dogs, 1 dead dog, 3 firearms, and other instrumentalities associated with dog fighting.
The defendants were charged after a long-term investigation conducted by the Milwaukee Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, in conjunction with the Milwaukee County District Attorney’s Office, the United States Attorney’s Office, the American Society for the Prevention of Cruelty to Animals (ASPCA), and the Milwaukee Area Domestic Animal Control Commission (MADACC). The Drug Enforcement Administration, Milwaukee High Intensity Drug Trafficking Area, the Milwaukee County Sheriff’s Department, Greenfield Police Department, Wisconsin State Patrol, West Allis Police Department, Wisconsin Division of Criminal Investigation, United States Marshals Service, and Homeland Security Investigations also assisted in the investigation.
The cases are being prosecuted by Assistant U.S. Attorney Bridget J. Domaszek and Assistant District Attorney Kurt Benkley.
An indictment is merely the formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
Illinois Man Sentenced to 40 Years for Distribution of Child Pornography in Xbox StingRead the Press Release
Orlando, Florida– United States Attorney A. Lee Bentley, III announces that Scott Anthony Estes (19, New Berlin, Illinois) was sentenced to 40 years in federal prison for distributing child pornography. He was also ordered to serve a life term of supervision, following his incarceration. Estes pleaded guilty in November 2013.
According to the plea agreement, Estes began contact with a 10-year-old boy on Xbox Live. Estes attempted to convince the child to engage in a sexual relationship. The child told his father about the conversation, and the father contacted law enforcement. Acting in an undercover capacity, agents initiated an investigation and continued communication with Estes. Believing that he was still talking to the child, Estes sent videos depicting child pornography and images of his genitalia.
Estes was arrested by law enforcement on March 22, 2013. During an interview, he stated that he had met the child while playing a video game played on Xbox. Estes also admitted to sending a picture of his genitalia to the child, as well as child pornography videos. He stated that he had asked the child to send naked pictures of himself. Estes also said that he had been in communication with a 13-year-old boy in Texas, and that he had met that child while playing Xbox as well.
Following Estes’ arrest, a search warrant was conducted on his e-mail address. An examination of his e-mail account showed that he distributed child pornography to numerous persons between July 2012 and March of 2013. Among the images and videos of child pornography distributed, several included pornographic videos that Estes had produced himself, while sexually abusing at least two children. A forensic review of Estes’ cellular telephone showed that he possessed more than 1,200 images of child pornography, including images depicting infants being sexually abused. A majority of the images of child pornography depict children between the ages of three and eight.
This case was investigated by Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Christopher LaForgia.
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.
Hogsett Announces Sentencing of Vermillion County ManRead the Press Release
U.S. Attorney says prosecution of illegally-armed felon is part of Violent Crime Initiative
CLINTON, IN - Joseph H. Hogsett, the United States Attorney, announced today the federal sentencing of a Vermillion County man on federal firearms charges. Danny K. Hight, age 47, of Cayuga, was sentenced by U.S. District Judge William Lawrence to 70 months (5 years, 10 months) for illegally possessing a firearm as a convicted felon.
“Three years ago, this Office pledged to federally prosecute more illegally-armed felons than ever before,” Hogsett said. “Our success in that effort has been due to cases similar to what has been alleged here - collaborative investigations targeting career criminals who view our local jails as their personal revolving door.”
The indictment alleges on October 11, 2012, law enforcement found Hight to be in possession of a Mossberg 12 gauge shotgun. Hight is a convicted felon, and therefore is not legally entitled to possess a firearm. His extensive criminal history includes convictions in Vermillion County for operating a vehicle while intoxicated, residential entry and criminal recklessness. He also has prior convictions in Marion County and Hancock County on charges of forgery and burglary.
This prosecution comes as part of the U.S. Attorney’s Violent Crime Initiative (VCI), and is the result of a collaborative investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as Vermillion County law enforcement.
Announced in March of 2011, the Violent Crime Initiative represents a district-wide strategy to work with local law enforcement and county prosecutors to combat drug traffickers and criminals that use and carry firearms in their illegal activities. The VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly three years since, more than 225 defendants have been charged.
“Through our Violent Crime Initiative, and in working with our law enforcement partners here in Vermillion County, we’re sending a united message that illegally-armed felons will face the full force of federal law,” Hogsett added.
According to Assistant U.S. Attorney Matthew J. Rinka, who is prosecuting the case for the government, Hight also must serve three years of supervised release after his prison term.
Hogsett Announces Federal Bank Fraud Charges Against Rockville ManRead the Press Release
Local automobile dealer defrauds bank of nearly $200,000.00
ROCKVILLE, IND- Joseph H. Hogsett, United States Attorney announced today that federal charges have been filed against a Rockville man for one count of bank fraud. Kevin B Jacks, 61, Rockville, has been formally charged by information and has signed an agreement to plead guilty in federal court.
“Each one of us has to be accountable for our actions both in our private and professional lives,” said Hogsett. “If you steal from financial institutions, you steal from all Hoosiers and my office will hold you responsible.”
According to the information, Jacks was the president and owner of Jacks and Jacks Motor Company (JJMC) in Rockville. He bought and sold vehicles for the dealership which were financed by First Financial Bank, N.A. (First Financial). Jacks had a security agreement with First Financial on the inventory whether presently owned or later acquired. Jacks had a wholesale financing plan, commonly referred to as a “floor plan” whereby Jacks was to make timely payment to First Financial upon the sale of automobiles covered in the agreement. First Financial would regularly send an auditor to JJMC to inspect the inventory and determine which automobiles covered by the floor plan were still for sale and which had been sold.
The information alleges that on various occasions between May 2009 and May 2011, Jacks would sell automobiles covered under the plan but failed to make the required payment. To conceal the fact that these automobiles were sold, Jacks would have the owner return the vehicle to JJMC business lot so that he could fraudulently represent to First Financial and their auditors that the automobiles had not yet been sold. The government further alleges that Jacks made false statement about the location of certain automobiles which had been sold out of trust but were not present at the JJMC lot at the time of audits.
According to Assistant U.S. Attorney James Warden who is prosecuting the case for the government, Jacks faces a maximum of 10 years in prison and a $250,000 fine. No future court date has been set.
An information is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Hogsett Announces Crawfordsville Man Charged with Theft of Government FundsRead the Press Release
Allegations of theft of unemployment insurance benefits and tax refunds
INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today that Pedro Sanchez, 34, Crawfordsville, has been charged by Information with theft of government funds related to fraudulent receipt of unemployment benefits and the filing of fraudulent tax returns.
“Theft of unemployment benefits takes money from some of the neediest Hoosier families. In addition, schemes such as those alleged against Mr. Sanchez increase the cost of government to honest, hard-working Hoosier taxpayers,” said Hogsett.
Pedro Sanchez owned Video Y Discoteca El Charron (“ElCharro”) a business in Crawfordsville that operated as a Mexican grocery store and diner with a money services business enabling customers to wire money and cash checks.
The Information alleges that Sanchez, through his Mexican grocery store business, which also contained a money service business, cashed numerous IRS refund checks that were issued based on fraudulent tax returns. On some occasions, Sanchez cashed the refund check himself. On one occasion, it is alleged that a tax return dated July 12, 2010 was prepared in the name of A. Chavez and submitted to the IRS for a refund. A. Chavez did not work for the employer listed on the W-2 and the refund check in the amount of $4,556 was endorsed by Sanchez. On other occasions, the tax refund checks were cashed by other people but went through the Mexican grocery store business account of Sanchez. Approximately $1,472,673 is alleged to have been received by Sanchez and others in fraudulent tax returns between approximately January 2009 and February 2011.
The tax refund scheme suspected in this investigation includes obtaining refunds for individuals using tax identification numbers listing wages that cannot be verified by employers. This scheme includes listing identical employers, similar and identical taxpayer home addresses, similar and identical wage and withholding information and claiming dependents which resulted in additional child tax credit. Many of the returns listed the filing status of “Head of Household” which is the most advantageous filing status of an unmarried person.
The Information also alleges that, beginning in March of 2010, Sanchez stole $29,000 of federal unemployment benefits. In May of 2010, an individual went to the Lafayette Indiana Department of Workforce Development office (“IDWD”) to obtain a printout of her past wages to assist her in applying for public aid. In the process of assisting her, the IDWD determined that she was receiving unemployment benefits. The individual had previously received the benefits, but at that time was not receiving them. IDWD determined that a benefits debit card was being sent to an address in Crawfordsville associated with a family member of Sanchez. While looking further into this matter, IDWD determined that multiple debit cards were being sent to the same address.
The Information further alleges that Sanchez used these debit cards and others to conduct ATM transactions without permission or authority of IDWD or the individuals in whose names the debit cards had been issued. Sanchez used the funds for his own personal use.
A person is eligible for unemployment insurance benefits if they are unemployed through no fault of their own. Upon becoming involuntarily unemployed, a worker could make a claim for benefits either by appearing in person at the IDWD office, or by submitting an application via the internet to the IDWD. This electronic application includes the person’s name, social security number, the last employer’s name, address, dates worked and reason for becoming unemployed. Once the application is approved, an account is set up and the worker would receive a debit card containing a dollar amount equal to the amount of unemployment insurance benefits due. In order to receive continuing benefits, each week thereafter, the worker is required to either appear in person or submit, via the internet to the IDWD, claim vouchers requesting additional payment of benefits. The claim voucher requires a worker to certify whether he or she had worked and received any earnings during the weekly period.
An Information or Indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Henrico Couple Sentenced to 15 Years for Production of Child PornographyRead the Press Release
RICHMOND, Va. – Fidel Rodriguez, 54, and Yida Perez, 44, of Henrico County, Virginia, were sentenced today to 15 years' imprisonment in U.S. District Court on four counts of production of child pornography. The defendants were convicted of the charges in a bench trial in November.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after the defendants were sentenced by Senior United States District Judge Robert E. Payne.
According to court documents and evidence presented at court, Rodriguez and Perez, who are husband and wife, sexually abused a minor relative for over six years and produced child pornographic images using the victim as a subject. The images were produced using a digital camera. Forensic analysts recovered dozens of the child pornographic images and videos saved on various forms of computer media throughout the defendants' residence, along with additional child pornographic images downloaded from the Internet. Undercover agents initially detected an individual distributing child pornography from the defendants' residence in 2013 and ultimately arrested Rodriguez and Perez on production of child pornography charges after a grand jury indictment in September.
Following their term of imprisonment, Rodriguez and Perez, who are Cuban citizens and were granted residency in the United States over six years ago, will be required to register as sex offenders in any U.S. jurisdiction in which they live, work, or attend school.
This case was investigated by the Federal Bureau of Investigation, the Henrico County Police Department and the Richmond Police Department as part of the FBI's Innocent Images Task Force. Special Assistant United States Attorney Gene Fishel of the Virginia Attorney General’s Office prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Guam Drug Traffickers Indicted in Joint Federal and Local InvestigationRead the Press Release
Hagatna, GU - ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that a federal grand jury returned a multi-count indictment charging three (3) individuals with conspiracy to distribute more than 50 grams of methamphetamine, two counts of attempted possession of methamphetamine with intent to distribute, and giving notice of a search warrant:
JAYVIN WYLL UEDA REMOKET, 30, FREDERICK A. OBAK, 47, and AMOS SHIOICHI UEDA, 46, were arrested today by law enforcement agents. A conviction for conspiracy to distribute more than 50 grams of methamphetamine carries a mandatory minimum sentence of ten (10) years imprisonment and a maximum of life imprisonment.
Initial appearances for defendants were held on April 3, 2014, at 4:00 p.m.
This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force, (OCDETF) a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.
This OCDETF investigation involved federal agents and local law enforcement officers of the Drug Enforcement Administration (DEA), Federal Bureau of Investigations (FBI), U.S. Postal Inspection Service (USPIS), and Guam Customs and Quarantine Agency (GCQA); with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Guam Police Department (GPD), Guam Probation Division and Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Rosetta San Nicolas.
The public is reminded that an indictment contains only allegations and 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.Glenpool Woman Pleads Guilty to Forgery and Tax FraudRead the Press Release
TULSA, Okla. – A Glenpool woman pleaded guilty on Wednesday to forgery and tax charges, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
Christi Bender-Anthony, 37, of Glenpool, entered pleas of guilty before U.S. District Court Judge John E. Dowdell to one count of making, uttering and possessing a forged security and one count of subscribing a false tax return.
According to court documents, from 2010 to 2012, while employed as an office manager at Process Products & Service Co., Bender-Anthony forged over 100 company checks for her own benefit, resulting in a loss of over $300,000. In addition, Bender-Anthony admitted to the court that she filed false federal tax returns for the years 2010, 2011, and 2012 by knowingly failing to report the income she obtained by means of the checks she forged. Bender-Anthony admitted that she owed over $100,000 in taxes as a result.
Bender-Anthony faces maximum terms of imprisonment of ten years on the forgery charge and three years on the tax charge, in addition to possible fines. The sentencing date has been scheduled for July 2, 2014.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Kevin C. Leitch prosecuted this case on behalf of the United States of America.
Geronimo Man to Serve 210 Months in Prison for Unlawful Possession of A FirearmRead the Press Release
Oklahoma City, Oklahoma – FLORENTINO VILLANUEVA, JR., 38, of Geronimo, Oklahoma, has been sentenced by United States District Judge Joe Heaton to serve 210 months in federal prison for being a convicted felon in possession of a firearm and ammunition, announced Sanford C. Coats, United States Attorney for the Western District of Oklahoma.
According to court records, a wide-ranging investigation revealed that Villanueva was linked to methamphetamine trafficking in the Comanche County area. During the execution of a search warrant at Villanueva’s house at 926 SW 35th Street in Lawton, Oklahoma, a Springfield Model XD .40 caliber pistol was discovered along with ammunition. Further investigation revealed that Villanueva had previous felony convictions in Comanche County for distribution of marijuana, first-degree robbery, and assault and battery on a police officer. Under federal firearms laws, Villanueva was prohibited from being in possession of any firearm or ammunition because of his prior felony convictions.
On September 3, 2013, Villanueva was indicted by a federal grand jury for being in unlawful possession of a firearm following his felony conviction. He pled guilty on November 22, 2013. At his sentencing hearing earlier this week, Judge Heaton found that due to Villanueva’s prior criminal history he was an Armed Career Criminal which resulted in an enhanced penalty increasing the minimum punishment to 15 years in prison.
In addition to sentencing Villanueva to serve 210 months, he was ordered to serve five additional years of supervised release after he is released from prison.
This sentence is the result of an investigation conducted by the Bureau of Alcohol Tobacco Firearms and Explosives, the Lawton Police Department, and the Oklahoma Bureau of Narcotics and Dangerous Drugs. The case was prosecuted by Special Assistant U.S. Attorney Mark R. Stoneman.
Reference is made to public filings for further information.
Gary Eugene Teague Sentenced to Serve 200 Months in Prison for Conspiring to Distribute OxycodoneRead the Press Release
GREENEVILLE, Tenn. – Gary Eugene Teague, 45, of Newport, Tenn., was sentenced on Apr. 1, 2014, by the Honorable Leon Jordan, U.S. District Court Judge, to serve 200 months in federal prison for conspiring to distribute oxycodone. Upon his release from prison, Teague will be subject to supervised release under the supervision of the U.S. Probation Office for six years. There is no parole in the federal system.
Teague and nine others were named in an eight-count indictment in December 2012, charging them with drug trafficking of oxycodone. The charges initiated from a lengthy investigation of individuals who traveled to numerous pain clinics throughout Tennessee to obtain oxycodone to distribute in eastern Tennessee. The total conspiracy involved over 1 million milligrams of oxycodone, which is the equivalent of over 30,000 dose units of 30 milligram oxycodone tablets.
All 10 individuals charged in the indictment have now been convicted and Teague was the next to last to be sentenced. A sentencing hearing for Billy Webb is scheduled for June 24, 2014.
U.S. Attorney Bill Killian commended the law enforcement agencies involved in this investigation and stated, “We appreciate the collaborative efforts of the law enforcement agencies involved in this investigation. We will continue to work closely with law enforcement to investigate these types of offenses and aggressively prosecute those who traffic prescription drugs and the ‘pill mills’ that supply drug trafficking organizations,” stated Killian.
This investigation was the result of a joint investigation by the Cocke County Sheriff’s Office and Tennessee Bureau of Investigation. Assistant U.S. Attorney Suzanne Kerney-Quillen represented the United States.
Former Senior Managing Director of Investment Bank Pleads Guilty in Manhattan Federal Court to Insider Trading and False Statements ChargesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FRANK PERKINS HIXON, JR., a former Senior Managing Director of Evercore Group, LLC, a subsidiary of Evercore Partners Inc. (“Evercore”), pled guilty yesterday in Manhattan federal court to insider trading and false statement offenses. Specifically, HIXON admitted to using inside information to trade and cause others to trade in the securities of Evercore, Westway Group Inc. (“Westway”), and Titanium Metals Corporation (“Titanium”). HIXON also admitted making false statements to agents of the Federal Bureau of Investigation (“FBI”) during the course of the investigation into his insider trading. The defendant was arrested on these charges in February 2014, and pled guilty yesterday afternoon to a six-count Information before U.S. District Court Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “With his guilty plea, Frank Perkins Hixon becomes the 80th defendant we have charged since August 2009 who has been convicted of insider trading offenses. This Office will continue to investigate and prosecute the widespread insider trading that has been shown to infect our markets, especially when those individuals try to evade detection by lying about their conduct.”
According to the allegations contained in the Information filed today in Manhattan federal court, the underlying criminal Complaint filed on February 20, 2014, and statements made during court proceedings:
Between April 2010 and January 2014, HIXON was a Senior Managing Director with the Mining and Metals Group of Evercore. HIXON used material non-public information that he acquired as part of his employment with Evercore to trade and cause trades in brokerage accounts belonging to the mother of his young child (“Individual A”), who lived in Austin, Texas, and to HIXON’s close relative (“Individual B”), who lived in Johns Creek, Georgia.
In 2011, HIXON led an Evercore team in advising Westway about a non-public offer from another company (“Company A”) to purchase some of its business components and, more generally, in connection with potential transactions concerning Westway’s other business components. Company A’s offer was made in early September 2011, and a Special Committee was formed around that time to consider the offer and other strategic alternatives. Those developments were not announced publicly until December 15, 2011. Meanwhile, between October 21 and December 15, 2011, HIXON purchased, and caused to be purchased, 229,000 shares of Westway for Individual A’s brokerage account by logging into Individual A’s account from various locations, including Evercore’s Manhattan office. As the negotiations for the contemplated Westway transactions became protracted, HIXON sold and caused to be sold about 140,000 of the Westway shares that had accumulated in Individual A’s account, for a profit of approximately $260,000. Later, in 2012, HIXON made additional purchases of Westway shares for Individual A’s account, in advance of a tender offer for Westway’s outstanding equity securities that was announced on December 20, 2012. Profits reaped from sales of those shares amounted to approximately $104,000.
In October 2012, HIXON was invited, along with other Evercore personnel, to meet with a Special Committee of Titanium’s board of directors to discuss a potential engagement in connection with an unspecified $3 billion transaction. At the October 23, 2012, pitch meeting, which HIXON attended by teleconference from London, England, HIXON and the rest of the Evercore team learned that the transaction being considered was an acquisition of Titanium by Precision Castparts Corp. (“PCP”), a manufacturer of complex metal components and products. HIXON also learned the approximate offer price, and that the transaction was likely to close before year’s end.
Within approximately one hour of the meeting with the Special Committee, HIXON began buying 20,000 Titanium shares for Individual A’s account from a mobile device traced back to London, England. Eight days later, after HIXON had returned from England, 20,000 more shares of Titanium were purchased for Individual A’s account, mostly through logins from Evercore’s Manhattan office. That same day, HIXON caused Individual B to buy 15,000 shares of Titanium. After market close on November 9, 2012, Titanium announced PCP’s tender offer for its shares. The next trading day, November 12, 2012, all 40,000 of Individual A’s shares of Titanium were sold for a profit of approximately $180,000. Later that month, Individual B’s Titanium shares were sold for a profit of approximately $70,000.
On January 14, 2013, HIXON attended an Evercore partnership meeting at which he learned that Evercore would be announcing record financial results for the fourth quarter of 2012. During the two days preceding the bank’s announcement on January 30, 2013, HIXON, logging into Individual A’s account from Evercore’s Manhattan offices and from his home in Manhattan, bought 27,000 shares of Evercore for the account. At the same time, HIXON caused Individual B to purchase 10,000 shares of Evercore for Individual B’s account. After Evercore’s earnings release, Individual A and Individual B sold all of their Evercore shares, and reaped a combined profit of approximately $96,000.
In February 2013, Evercore asked HIXON to respond to a request from the Financial Industry Regulatory Authority (“FINRA”) and to identify any known names from a list of people and entities that had traded in Titanium stock prior to PCP’s tender offer. Although Individual A and B were both on the FINRA list, HIXON responded by email: “No known relationships.”
When Evercore confronted HIXON about his failure to identify Individual A – who, as noted above, is the mother of his young child – HIXON claimed not to know Individual A by her legal name, which was what appeared on the FINRA list, and to know her only by a different name she uses. Documents produced by Evercore, including text messages and emails between HIXON and Individual A, make clear that HIXON had, in fact, long been aware of Individual A’s legal name. And bank records show that he wrote numerous large checks to Individual A, in her legal name, from 2009 to 2010. On January 28, 2014, HIXON met with two FBI agents and told them, among other things, that he did not have access to and had never traded in Individual A’s brokerage account.
When Evercore confronted HIXON about his failure to identify Individual B, his close relative, HIXON responded that the associated location given for Individual B on the FINRA list – Duluth, Georgia – was inaccurate, because Individual B lives in Johns Creek, Georgia. Johns Creek shares a zip code with portions of Duluth, and was only incorporated as its own city in December 2006. The city reflected on the brokerage account statements for Individual B’s account is Duluth.
HIXON, 55, of New York, New York, pled guilty to three counts of securities fraud, two counts of securities fraud in connection with a tender offer, and one count of making a false statement. Each of the securities fraud charges carries a maximum term of 20 years in prison, and the false statement charge carries a maximum term of five years in prison. HIXON is scheduled to be sentenced by Judge Abrams on August 1, 2014, at 11:00 a.m. As part of his guilty plea, HIXON also agreed to forfeit $710,000 to the United States. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI and thanked the Securities and Exchange Commission, which has filed civil charges in a separate action. Mr. Bharara also thanked Evercore for its cooperation in this matter.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, please visit www.stopfraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Sarah E. McCallum is in charge of the prosecution.
Former Bank Employee Sentenced to Prison in Fraud SchemeRead the Press Release
Used her Position in the Bank to Apply for Mortgages in the Names of Family Members and Used the Loan Proceeds for Her Personal Benefit
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Jill Dail, age 59, of Cambridge, Maryland, today to 16 months in prison, followed by five years of supervised release, for bank fraud in connection with a scheme in which she and her brother, Jeffrey Scott Dail, fraudulently obtained mortgage loans in the names of family members, using the proceeds for their own benefit. Judge Motz sentenced Jeffrey Dail, age 49, also of Cambridge, today to a year and a day in prison, followed by three years of supervised release, for his role in the scheme. Judge Motz ordered ordered Jeffrey Dail to pay restitution of $248,000. The amount of restitution for Jill Dail will be determined at a later date.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.
According to her plea agreement, Jill Dail was a loan settlement processor in the mortgage department at a Salisbury, Maryland, bank until she was terminated in June 2007, as part of a reduction in the bank’s workforce. Shortly thereafter, Dail was privately hired by the manager of the bank’s mortgage department to continue to do the same loan processing work she had performed as an employee of the bank. The bank manager paid Dail out of his own funds and gave her full access to the bank premises, computer system and loan files. Dail continued to represent herself as a bank employee in her dealings with title companies and other businesses.
Jill Dail admits that beginning before January 2006 through at least August 2009, she and her brother, Jeffrey Dail, applied for mortgage loans in the names of family members and used the proceeds of the loans for their personal benefit. The Dails forged the signature of family members and bank officials on the loan applications, causing the bank to approve the applications and authorize the distribution of the loan proceeds at settlement. In each instance, the family members whose identities were used on the loan applications, and whose properties were used as collateral for the loans, had no knowledge of the applications or the loans.
Based on the assurances of Jill Dail, with whom the title company had a well-established business relationship, title company employees notarized the signatures of the family members on the settlement documents and disbursed the loan funds at settlement, as directed by Jill Dail, to herself, to Jeffrey Dail, or to their creditors. The balance of loan funds still unpaid is approximately $687,923.67.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who prosecuted the case.
Former Apartment Complex Manager Indicted for Embezzlement of Public Housing FundsRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Liliam Patricia Urbina (46, Sanford) with theft and embezzlement concerning programs receiving federal funds. If convicted, she faces a maximum penalty of 10 years in federal prison. The indictment also notifies Urbina that the United States intends to forfeit $80,168.16, which is alleged to be the funds she obtained through the offense.
According to the indictment, Urbina was employed as the manager of an apartment complex (“Tuscany at Aloma”) owned and operated by the Winter Park Housing Authority, which receives federal funding and provides affordable housing. As the manager, she collected rent from tenants of the apartment complex. The indictment alleges that beginning on or about October 2011 through on or about March 2013, Urbina used the rent payments provided to her by tenants, for her own purposes. Among other things, she deposited the money orders that she received from tenants into bank accounts which she controlled, cashed the money orders, and used them to pay her own rent and purchase a vehicle.
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.
This case was investigated by the U.S. Department of Housing and Urban Development, Office of Inspector General. It will be prosecuted by Assistant United States Attorney Daniel C. Irick.
Folk Nation Gang Member Pleads Guilty to 2008 Murder of Anthony ThomasRead the Press Release
Earlier today, Geraldo Elainor, a member of the violent Brooklyn street gang the “Six Tre Outlaw Gangsta Disciples Folk Nation,” also known as the “Folk Nation,” pleaded guilty to racketeering, including the 2008 murder of Anthony Thomas as a predicate racketeering act, and discharge of a firearm in connection with the racketeering offense. Today’s plea took place before United States District Judge Nicholas G. Garaufis. If the Court accepts the defendant’s guilty plea, the defendant will be sentenced to 25 years in prison.
The plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York.
“In this senseless murder, the defendant brazenly took the life of Anthony Thomas, who unwittingly made the fatal mistake of exercising in a playground controlled by Folk Nation members,” stated United States Attorney Lynch. “Acting on the gang’s mandate to kill those they believed to be rival gang members, the defendant chased the victim out of the Ebbets Field playground without provocation or justification and killed him. We hope the victim’s family can take some measure of solace in knowing that the individual responsible for their son’s murder has been brought to justice.” Ms. Lynch thanked the FBI and the New York City Police Department for their joint investigation leading up to this case.
Throughout most of its existence, the Six Tre Folk Nation was the dominant gang in the Ebbets Field Houses in the Flatbush area of Brooklyn and took threatening and violent actions to deter residents of those projects from associating with rival gangs. On August 9, 2008, Anthony Thomas was exercising in a neighborhood playground when the defendant Geraldo Elainor, believing Thomas was a rival gang member, approached and began firing at him. Elainor chased Thomas as he ran away and continued shooting at him, hitting him once in the chest. Thomas eventually reached the parking lot of a nearby McDonalds, where he collapsed and died of his wound.
Elainor is one of nine defendants charged by the United States Attorney’s Office for the Eastern District of New York for crimes they committed as members of the Folk Nation. His co-defendant, Devon Rodney, was sentenced last month to 20 years’ imprisonment for his role in directing the gang’s violent activities.
The government’s case was prosecuted by Assistant United States Attorneys Berit Berger, Zainab Ahmad and Kristin Mace.
The Defendant:
Geraldo Elainor
Brooklyn, New York
Age: 24
Final Defendant Sentenced in “Operation Cowtown Tobacco”Read the Press Release
ATF, Texas Comptroller of Public Accounts and Euless Police Department
Led Investigation into Trafficking of Contraband CigarettesDALLAS — A multi-year investigation into the trafficking of untaxed cigarettes, including purchasing cigarettes and selling them with counterfeit tax stamps to avoid paying state cigarette taxes, in violation of the Contraband Cigarette Trafficking Act, has led to the conviction of 11 Texas residents, most of whom are from North Texas.
The last convicted defendant was sentenced this week in federal court in Dallas. Glen Murray McDonald, 50, of Pasadena, Texas, was sentenced by U.S. District Judge David C. Godbey to serve nine months in federal prison and nine months on home confinement. He pleaded guilty in August 2013 to one count of trafficking in contraband cigarettes and one count of receipt of counterfeit securities. Ten other convicted defendants pleaded guilty to similar offenses and received a variety of sentences. In addition, convicted defendants were ordered to pay restitution in amounts ranging from approximately $24,000 to $1.1 million.
The investigation began in October 2009 when officers from the Euless Police Department responded to a suspicious person call at a home in Euless, Texas. Later that same night, they executed a search warrant at the house and confiscated more than 2,760 cartons of contraband cigarettes and 11,580 counterfeit Texas tax stamps.
In making the announcement today, U.S. Attorney Saldaña said, “I commend the efforts of the men and women of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Texas Comptroller of Public Accounts, the Euless Police Department and the Tarrant County District Attorney’s Office in this operation.”
During the investigation, special agents with ATF received information about various tobacco tax diversion schemes in North Texas, including purchasing cigarettes and selling them with counterfeit tax stamps to avoid paying state cigarette taxes.
“ATF’s mission is to stop violent criminals and dismantle criminal organizations. Through this joint investigative effort, multiple criminal organizations were dismantled which were responsible for the diversion of state revenue caused by the trafficking of contraband tobacco products. I’d like to recognize the Euless Police Department, the Texas Comptroller of Public Accounts and the Tarrant County District Attorney’s Office whose outstanding efforts contributed to the successful outcome of this investigation,” said ATF Special Agent in Charge Robert R. Champion of the Dallas Field Division.
“This is an example of how federal investigators utilize the expertise of the Comptroller’s office to bring tax cheats to justice,” Texas Comptroller Susan Combs said. “We have the expertise and statutory authority to conduct tax investigations as well as share information such as business purchases and tax reports with law enforcement. We will continue to provide our services to federal and local investigators to ensure compliance and protect honest retailers.”
Cigarettes sold in Texas are required to have a federal tax assessed; that tax is paid by the manufacturer before cigarettes leave the warehouse. Texas also requires that a state tax be paid in the form of a tax stamp affixed to each package of cigarettes sold. Only companies licensed by the Texas Comptroller’s Office are allowed to purchase tax stamps and bond them to cigarette packages. The current cigarette tobacco tax stamp is $1.41 per package of cigarettes. By purchasing contraband cigarettes, people involved in the sale of untaxed cigarettes avoid paying Texas taxes in the amount of $1.41 per package, or $14.10 carton, or $846 for a master case of 60 cartons.
Assistant U.S. Attorney Katherine E. Pfeifle prosecuted the cases.
Federal Jury Convicts Ponemah Man for Strangling A WomanRead the Press Release
MINNEAPOLIS—Earlier today, a jury in federal court in Duluth found a 47-year-old Ponemah man guilty of strangling a woman while on the Red Lake Indian Reservation. Following a three-day trial, the jury convicted Terry Dean Iceman on one count of strangulation. Iceman was indicted on November 13, 2013.
According to the evidence presented at trial, on July 18, 2013, Iceman assaulted the victim by strangling and attempting to strangle her. For his crime, Iceman faces a potential maximum penalty of 10 years in prison. United States District Chief Judge Michael J. Davis will determine his sentence at a future hearing, yet to be scheduled.
This case is the result of an investigation by the Red Lake Tribal Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorneys Manda M. Sertich and Deidre Y. Aanstad.
Because the Red Lake Indian Reservation is a federal-jurisdiction reservation, some of the crimes that occur there are investigated by the FBI in conjunction with the Red Lake Tribal Police Department. Those cases are prosecuted by the U.S. Attorney’s Office.Violence against American Indian women occurs at epidemic rates. In 2005, Congress found that one in three American Indian women is raped during her lifetime, and American Indian women are nearly three times more likely to be battered during their lives than Caucasian women.
The U.S. Justice Department is taking steps to increase engagement, coordination, and action relative to public safety in tribal communities, including the creation of the Violence Against Women Federal and Tribal Prosecution Task Force. This task force will explore current issues raised by professionals in the field and recommend “best practices” in prosecution strategies involving domestic violence, sexual assault and stalking.
To learn more about the Justice Department’s Tribal Safety program, visit http://www.justice.gov/tribal/.Fci Danbury Employee Indicted for Role in Inmate Early Release Bribery SchemeRead the Press Release
Follow @USAO_CT
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Ronald G. Gardella, Special Agent-in-Charge, Department of Justice Office of the Inspector General, New York Field Office, today announced that a federal grand jury in New Haven returned an indictment today charging KISHA PERKINS, a case manager at the Federal Correctional Institution in Danbury (FCI Danbury), for her role in a scheme to solicit and collect cash bribes from FCI Danbury inmates in exchange for a recommendation that inmates be released early to “halfway houses.”
The indictment charges PERKINS, 42, of Waterbury, with one count of paying a bribe to a public official, and one count of acceptance of a bribe by a public official. PERKINS was arrested on a federal criminal complaint on March 14, 2014.
As alleged in the criminal complaint, in June 2013, PERKINS approached another FCI Danbury employee about an opportunity to participate in a scheme to solicit a cash bribe from an inmate at FCI Danbury in exchange for the inmate’s early release to a halfway house. At that time, PERKINS held the job title of “Unit Counselor” at FCI Danbury and did not have administrative authority to recommend inmates for early release. PERKINS explained that the inmate and the inmate’s husband were willing to pay $20,000, and that PERKINS’ co-worker, who would receive half of the money, was needed to complete the scheme because the co-worker had the administrative ability to recommend inmates for early release.
PERKINS’ co-worker declined to participate in the scheme, reported the incident to law enforcement and agreed to cooperate in the investigation, which included the use of numerous consensually recorded conversations.
In July 2013, PERKINS’ co-worker told PERKINS that he/she had changed his/her mind and wanted to participate in the scheme. It is alleged that PERKINS informed her co-worker that a scheme involving the inmate who had been previously identified was no longer feasible.
As the investigation continued, in February 2014, PERKINS’ co-worker identified a second inmate as a possible candidate for the bribe scheme. Is it alleged that PERKINS agreed to participate and, after extensive planning, on March 8, 2014, PERKINS and her co-worker traveled to a commuter lot off of Exit 28 on Interstate 84 to pick up a partial bribe payment of $5,000 in cash in a fast food bag that, as PERKINS believed, was to be dropped off by an acquaintance of the inmate.
If convicted, PERKINS faces a maximum term of imprisonment of 15 years on each count.
After her arrest on March 14, PERKINS was released on a $100,000 bond. Her bond was revoked on March 28 and she is currently detained. An arraignment and detention hearing is scheduled for April 7 in New Haven.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Department of Justice Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
PUBLIC AFFAIRS CONTACT:
U.S. ATTORNEY'S OFFICE
Tom Carson
(203) 821-3722
[email protected]East Central Franklin Woman Sentenced to More Than Four Years for Pharmacy RobberyRead the Press Release
Contact: James M. Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Michelle
L. Wilcox, 28, of East Central Franklin, was sentenced today in U.S. District Court in Bangor to
51 months in prison and three years of supervised release for robbing the Western Maine
Pharmacy in Kingfield, Maine. She was also ordered to pay $1,153 in restitution. She pled
guilty to the crime on October 18, 2013.Court records reveal that on June 3, 2013, the defendant, wearing a gray hooded
sweatshirt and sunglasses, entered the pharmacy and passed a note to a technician demanding all
of the Suboxone strips and stating that she had “a weapon and will use it.” She absconded with
85 8mg Suboxone strips. A Franklin County Deputy Sheriff identified the defendant from
detailed witness descriptions and review of a surveillance video. Within hours of the robbery,
the defendant was arrested and confessed.The investigation was conducted by the Federal Bureau of Investigation, the Franklin
County Sheriff’s Department and the Maine State Police.Dubuque Man Sentenced to 20 Years for Distributing Child PornographyRead the Press Release
A man who distributed child pornography was sentenced today to twenty years in federal prison.
Robert Buss, age 50, of Dubuque, Iowa, received the sentence after a January 9, 2014, guilty plea to one count of distribution of child pornography. At the guilty plea hearing, Buss admitted that, in 2012, he used the Internet to distribute child pornography. Information provided at the sentencing hearing indicated that defendant also attempted to entice three minors to send him sexually explicit depictions of themselves, including a boy he met while on a mission trip to Haiti.
Buss was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Buss was sentenced to 240 months’ imprisonment. A special assessment of $100 was imposed, and Buss must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations, the Dubuque Police Department, and the Iowa Internet Crimes Against Children Task Force.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-1020.
Dubuque Man Headed to Federal Prison for Meth FireRead the Press Release
A man who caused a fire while attempting to manufacture methamphetamine in his Dubuque apartment was sentenced today to six and one‑half years in federal prison.
Jeremiah Shaw, 42, from Dubuque, Iowa, received the prison term after an October 11, 2013 guilty plea to one count of attempting to manufacture methamphetamine near a playground.
Information disclosed at the plea and sentencing hearings indicated that Shaw attempted to cook methamphetamine at his apartment on April 28, 2013. Shaw’s attempted cook caused a fire to ignite in the apartment. Two other people were present in the apartment, which was located within 1,000 feet of three separate playgrounds.
Shaw was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Shaw was sentenced to 78 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Shaw is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Justin Lightfoot and investigated by the Dubuque Drug Task Force.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/ login.pl. The case file number is CR 13-1014.
Dual Chinese/U.S. Citizen Sentenced in Money Laundering SchemesRead the Press Release
CORPUS CHRISTI, Texas - Kin Fu Chow, 47, of Chicago, Ill., has been ordered to prison for his involvement in a money laundering conspiracy involving alien smuggling activity, announced United States Attorney Kenneth Magidson. Chow pleaded guilty to one count of money laundering on Jan. 2, 2014.
Today, Senior U.S. District Judge Hayden Head handed Chow a sentence of 15 months in federal prison to be immediately followed by three years of supervised release.
Chow was a leader in a large money laundering conspiracy operating in the Southern District of Texas. The money laundering was accomplished through other illegal activity including alien smuggling and drug trafficking.
Chow purchased a 1975 Cessna 310R aircraft to enable the criminal organization to smuggle illegal money, aliens and drugs. He was responsible for the smuggling of Chinese nationals into the United States via Mexico. Chow’s co-conspirators were arrested in 2010 and the aircraft was seized as part of their prosecution. At the time of their arrest, Chow then fled to China. He returned to the U.S. on an aircraft that landed in Seattle, Wash., in October 2013, at which time he was immediately arrested.
Chow will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case is a result of the efforts of a multi-agency Organized Crime Drug Enforcement Task Force investigation dubbed “Operation Sky’s the Limit.” The investigation was led by Homeland Security Investigations, Internal Revenue Service - Criminal Investigation, Drug Enforcement Administration and the Corpus Christi Police Department. Assistant United States Attorney Julie K. Hampton is prosecuting.
Desperado's Co-owner, Wife, Plead Guilty to Racketeering Conspiracy ChargeRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that James Panos, 56, and wife Jennifer Panos, 48, of Broussard, La., entered guilty pleas before U.S. Magistrate Judge Patrick Hanna to one count of racketeering conspiracy at the now closed Desperado’s Cabaret in Carencro, La. This plea is conditional and does not become final until it is accepted by U.S. District Judge Elizabeth E. Foote.
James Panos and Jennifer Panos are the last two defendants in a 10-count indictment to plead guilty. They were charged on May 15, 2013, in an indictment alleging racketeering conspiracy, drug conspiracy, and firearms charges. The charges are the result of an investigation of drug trafficking, drug distribution, prostitution, and other illegal activity that took place at Desperado’s Cabaret in Carencro located on Northeast Evangeline Thruway.
James Panos and Jennifer Panos face 20 years in prison, a fine of not more than twice the gross profits or other proceeds, and three years of supervised release for one count of racketeering conspiracy. As part of the plea agreement, they agreed to forfeit illegal proceeds already seized and to forfeit the Desperado’s property.
The U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Department of Homeland Security Investigations, Louisiana State Police, and Lafayette Metro Narcotics investigated the case. Assistant U.S. Attorneys Myers P. Namie and Daniel J. McCoy prosecuted the case.
Court Enters Judgment Against Pontiac, Mich., Law Firm and Permanently Enjoins the Firm from Continuing to Pay Wages to Employees Without Paying Associated Payroll TaxesRead the Press Release
On April 3, 2014, a U.S. District Court for the Eastern District of Michigan in Detroit issued a judgment against the law firm Hatchett, DeWalt & Hatchett PLLC in the amount of $122,994.12 for unpaid federal employment and unemployment taxes and penalties for late filing partnership income tax returns for various tax periods from 2003 to 2012.
The Honorable Robert H. Cleland also entered a stipulated order of permanent injunction requiring Hatchett, DeWalt & Hatchett PLLC to file all employment, unemployment and partnership tax returns on a timely basis, to deposit all due taxes in an appropriate federal depository bank and to pay all required liabilities due on each return on a timely basis. The order enjoins the law firm from assigning property or making any payments until the employment tax and withholding liabilities are first paid to the Internal Revenue Service (IRS). It also requires the law firm to provide monthly affidavits to the IRS verifying that the requisite tax deposits have been made in a timely manner.
The permanent injunction order was issued in response to the Feb. 4, 2014, suit filed by the Department of Justice, alleging that Hatchett, DeWalt & Hatchett PLLC had been engaged in a practice known as “pyramiding,” whereby a business withholds taxes from its employees but intentionally fails to remit them to the IRS as mandated by law.
Related Materials:
United States v. Hatchett, DeWalt & Hatchett PLLC.
Complaint
Judgment
Stipulated Order of Permanent InjunctionColumbus Man Sentenced for Using Stolen Identities to Defraud Federally Funded Tutoring ProgramRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS –Ashkir Ali, 46, of Columbus was sentenced to 18 months for billing two area school districts more than $100,000 for tutoring sessions that were never provided.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Thomas D. Utz, Jr., Special Agent in Charge for the North Central Region of the U.S. Department of Education, Office of Inspector General and Ohio Auditor of State Dave Yost announced the sentence handed down today by U.S. District Judge Edmund A. Sargus Jr.
Ali pleaded guilty on November 14, 2013 to one count of making false statements in invoices he sent to the U.S. Department of Education’s Supplemental Education Services Program.
“These crimes were committed in order to abuse a program set up to help central Ohio schoolchildren,” U.S. Attorney Stewart said. “We will continue to work with federal and state law enforcement to uncover and prosecute such crimes.”
“Ali’s students never learned the meaning of the word ‘sentence’ from him,” Auditor Yost said. “But he’ll have plenty of time to ponder what it means while serving his.”“We appreciate the excellent working relationship with the U.S. Attorney’s Office and look forward to continuing our work for the cause of fiscal integrity.”
Ali owned WAISS Network Technologies. According to court documents, Ali created fraudulent forms using forged tutor, student and parent names and other information. He billed Columbus City Schools and was paid for tutoring 51 students who either never attended tutoring or who went very few times. Investigators determined the fraudulent scheme netted Ali approximately $100,000 over a two-year period.
Ali used the same method to defraud Southwestern City Schools out of approximately $20,000 in the 2010-2011 school year. Investigators did not find a single student from Southwestern City Schools who attended tutoring allegedly provided by WAISS.
Allegations surfaced of possible misconduct by providers of the Supplemental Education Services Program in January 2011. The Auditor of State’s Special Investigations unit conducted a special audit of the Columbus City School District in June 2011.
U.S. Attorney Stewart commended the investigation by the U.S. Department of Education Office of Inspector General and State Auditor Yost’s Special Investigations Unit, as well as Assistant U.S. Attorney Kenneth Affeldt who prosecuted the case.
# # #Charleston Man Sentenced to Federal Prison for Possessing Stolen FirearmRead the Press Release
CHARLESTON, W.Va. – A Charleston man who admitted possessing three stolen firearms was sentenced today, U.S. Attorney Booth Goodwin announced. Joshua Caudill, 28, of Charleston, West Virginia, previously pleaded guilty in February of 2013. Caudill admitted that he and Cody Fuller, 27, also of Charleston, West Virginia, burglarized a home on Tilbury Lane in St. Albans in November of 2012 and stole three firearms. Caudill was sentenced to 76 months imprisonment, 70 months for the possession of stolen firearms, and an additional six months for violating the conditions of his supervised release. Fuller pleaded guilty to his role in the offense and was sentenced to 57 months in federal prison in July of 2013.
The arrests of Caudill and Fuller were the result of investigations into a string of burglaries in Kanawha County that occurred in October and November 2012. Various agencies, including the Charleston Police Department and the Kanawha County Sheriff’s Department, conducted the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.
Cedar Rapids Man Sentenced to 16 Years for Receiving Child PornographyRead the Press Release
A man who received child pornography was sentenced today to sixteen years in federal prison.
Jason Smith, age 21, of Cedar Rapids, Iowa, received the sentence after an October 7, 2013, guilty plea to one count of receipt of child pornography. At the guilty plea hearing, Smith admitted that, between 2011 and 2013, he used the Internet to receive child pornography. Information provided at the sentencing hearing indicated that defendant also posed as a female on the Internet, enticed minors to masturbate for him on webcam, and saved videos of these minors on his computer.
Smith was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Smith was sentenced to 192 months’ imprisonment. A special assessment of $100 was imposed, and Smith must also serve a ten-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, the Federal Bureau of Investigation, and the Cedar Rapids Police Department.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 13-54.
Business Owner Sentenced for Mail Fraud Conviction Related to 2006 Mountain View FireRead the Press Release
SAN JOSE – Fauzia Lodhi, formerly of Mountain View but now residing in Mission Viejo, Calif., was sentenced on April 2, 2014, to 16 months in custody for her conviction on mail fraud, announced U.S. Attorney Melinda Haag and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Joseph M. Riehl.
Lodhi, 53, pleaded guilty to committing mail fraud on May 1, 2013. Lodhi admitted that she submitted both fraudulent business income interruption claims and fraudulent business personal property claims to State Farm Insurance arising from damage incurred during a fire at her business on May 17, 2006. The business was Postal Express, located at 801 West El Camino Real, Mountain View, Calif. Previous to the fire, Lodhi had provided inflated inventory and revenue statements to a State Farm insurance agent in order to induce State Farm to insure Postal Express for business interruption and loss of business personal property in excess of the actual value of the business. Lodhi then submitted insurance claims to State Farm based on the falsely inflated inventory and revenue statements.
In addition, Lodhi intentionally misrepresented the amount of business interruption insurance payments and loss of business personal property insurance payments to which she was entitled under her State Farm insurance policy. She admitted that she used the fraudulently-obtained business interruption payments to satisfy her outstanding debts.
The sentence was handed down by the Honorable Lucy H. Koh, United States District Court Judge. Judge Koh also sentenced Lodhi to a three-year period of supervised release and ordered the defendant to pay restitution of $54,896 to State Farm Insurance. Lodhi was ordered to self-surrender on July 30, 2014.
Matt Parrella is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Mountain View Police Department, and the Mountain View Fire Department.
(Lodhi indictment )
Armed Career Criminal Sentenced to 15 Years. United States Attorney’s Office Seeks Signifcant Penalties for 3 Other Men on Federal Firearms ChargesRead the Press Release
Hogsett’s Office maintains relentless pace to stem the tide of gun violence
EVANSVILLE - Joseph H. Hogsett, United States Attorney, announced today the sentencing of an armed career criminal and the charging either by criminal complaint or by indictment for federal firearms violations of three other men. Two of those additionally charged may also qualify as armed career criminals, if convicted.
“Gun violence continues to torment Hoosier communities. Those who choose to illegally carry firearms will be held strictly accountable and the revolving door of justice stops here and now. Evansville is a peaceful community and we intend to do everything we can to keep it that way,” Hogsett said.
Hogsett announced that, yesterday, U.S. District Court Judge Richard L. Young sentenced Derrick W. Vogt, 33, Tell City, Indiana, to 15 years in federal prison for being a convicted felon in possession of a firearm and being an armed career criminal. In August of 2013, at the time of his guilty plea, Vogt admitted to possession of a Beretta, Model 3032 Tomcat, .32 caliber pistol.
Vogt’s criminal record includes three felony burglary and four felony theft convictions as well as one felony sexual battery conviction, all in Perry County, Indiana. Vogt was subject to the enhanced penalty under the armed career criminal statutes which impose mandatory minimum sentences for person who have accumulated violent felony convictions.
In addition, Hogsett announced that a federal grand jury had returned two indictments, against other men.
The first indictment alleges Glynn Petticord, 42, of Evansville, possessed a Taurus, .45 caliber pistol, after being found in an east side Evansville hotel by United States Marshals. Petticord has four prior felony convictions for robbery, auto theft, battery and criminal recklessness, dating back to 1994.
The second indictment alleges that Jacob Roy Hammond, 22, of Dover, Tennessee, was in possession of two firearms (a Springfield Arms, .40 caliber semi-automatic pistol and a Walther, .22 caliber semi-automatic pistol) when he was located outside a hotel on the north side of Evansville by the United States Marshals. Hammond has five felony convictions for burglary and one for selling a controlled substance in Tennessee, for a total of six felonies.
Hogsett also announced the filing of a criminal complaint against Cornelius Ratliff, 29, of Evansville, for knowingly possessing a firearm as a convicted felon. On March 17, 2014, the Evansville Police Department made a routine traffic stop. Ratliff was a passenger in the vehicle. He was asked to exit the vehicle so that a search of the vehicle could ensue. Upon exiting the vehicle, Ratliff ran away and, upon being pursued, pulled a silver handgun from his waistband and aimed it at Evansville police officers.
Hogsett further observed, “if we are successful in taking all of these individuals off the streets, a total of 21 felony convictions go with them. That goes a long way toward improving the safety of communities throughout southwestern Indiana.”
Upon his arrest, a background check of Ratliff revealed a felony conviction for second degree murder as well as two felony convictions for being a felon in possession of a firearm.
This sentencing and all additional charges come as part of the U.S. Attorney’s Violent Crime Initiative (VCI). Launched in March 2011, the VCI has produced a dramatic increase in the number of gun-related charges brought federally. In the year preceding the initiative, there were just 14 defendants charged with federal gun crimes by the U.S. Attorney’s Office. In the nearly three years since, more than 225 defendants have been charged.
According to Assistant U.S. Attorney Todd S. Shellenbarger and Assistant U. S. Attorney Lauren Wheatley, who are prosecuting the cases for the government, Hammond and Petticord face a maximum of life in prison and a $250,000 fine, based on the armed career criminal sentencing enhancement. An initial hearing will be scheduled in Evansville, Indiana, before a United States federal district court Magistrate Judge.
An indictment and criminal compliant are only charges and are not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Annandale Mortgage Broker Sentenced to 38 Months in PrisonRead the Press Release
ALEXANDRIA, Va. – Kil Seok (“Michael”) Seo, 49, formerly of Fairfax, Va., was sentenced today to 38 months in prison for engaging in bank fraud and aggravated identity theft as part of a mortgage fraud scheme. Seo also was ordered to pay restitution of $894,600 to several banks that were the victims of Seo’s criminal conduct.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement following today’s sentencing by U.S. District Judge James C. Cacheris.
Seo was indicted on Dec. 10, 2009, by a federal grand jury on charges related to a scheme to defraud mortgage lenders, and he entered a guilty plea in U.S. District Court on Jan. 14, 2014.
According to court records, Seo, an Annandale, Va., mortgage broker, schemed with others, including Peter Jin, to defraud lenders by transferring title to residential properties into the names of victims without their knowledge or consent and then opening home equity lines of credit in victims’ names, again without their knowledge or consent. Seo and Jin then opened bank accounts in the victims’ names for the purpose of receiving the fraudulently obtained loan proceeds. As part of the scheme, Seo obtained from the Virginia Department of Motor Vehicles an identification card in the name of a victim but with Seo’s photo. He used that fraudulent ID to take out a home equity loan in the victim’s name. In total, the scheme resulted in losses to the lenders of nearly $900,000.
In 2009, co-defendant Jin pleaded guilty to mail fraud and aggravated identity theft charges in connection with his role in the offense and was sentenced to 48 months in prison. Seo has resided in South Korea since 2009, and he was extradited to the United States in November 2013 to face the criminal charges contained in the December 2009 indictment.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Timothy D. Belevetz and Mark D. Lytle are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Anesthesiologist Sentenced to Five Years in Prison for Unlawfully Distributing OxycodoneRead the Press Release
A former hospital anesthesiologist was sentenced today in U.S. District Court in Seattle to five years in prison and three years of supervised release for distribution of oxycodone, announced U.S. Attorney Jenny A. Durkan. HIEU TU LE, 40, of Snohomish, Washington, a medical doctor licensed in Washington State since 2004, operated medical clinics in Seattle and Everett, Washington. LE admits that between March 2012 and July 2013 he wrote oxycodone prescriptions for cash and obtained oxycodone that he distributed for cash, all without a legitimate medical need to do so. At sentencing U. S. District Judge Thomas S. Zilly noted the “potential public danger of the conduct.”
“This defendant essentially operated an open-air drug market out of the parking lot of his medical clinic,” said U.S. Attorney Jenny A. Durkan. “As a medical doctor he knew the damage of addiction but sold drugs to feed his greed.”
According to records filed in the case and statements made in court today, LE left his job as an anesthesiologist with Valley General Hospital in Monroe, Washington in March 2012. From March to September 2012, LE operated a medical clinic on Seattle’s Capitol Hill neighborhood providing medical marijuana authorizations. In September 2012, LE opened a clinic in Everett called Northwest Green Medical. Beginning in March 2012 and continuing until July 2013, LE wrote multiple oxycodone prescriptions for cash to people who did not need the prescriptions for legitimate medical purposes. LE would also hand deliver the prescriptions to an Everett pharmacy, pick up the oxycodone pills, and then sell the pills to people who he knew did not have a legitimate medical need for the pills. LE knew that some of the people to whom he sold the pills were reselling them to others, feeding drug addiction in the community. LE’s Everett clinic was the subject of a federal search warrant in July 2013. At that time, LE voluntarily surrendered his DEA registration, which had authorized him to prescribe controlled substances.
In requesting a lengthy prison sentence, prosecutors highlighted the damage of prescription medication addiction, and LE’s unique culpability. “According to the Centers for Disease Control and Prevention (CDC), in 2010 there were 16,651 overdose deaths involving prescription opioids, a tally which outnumbered overdose deaths from all other illicit drugs (including heroin and cocaine) combined. In 2009, for the first year ever, opioid deaths surpassed motor vehicle crashes as a cause of death in the United States. …. As a medical doctor, the defendant ignored the harsh realities of addictive painkillers, suggesting that he lost whatever moral compass he may have had,” prosecutors wrote in their sentencing memo.
As part of the plea agreement, LE is forfeiting to the government various brokerage and bank accounts as proceeds of his drug distribution, and a 2009 Toyota Highlander Hybrid purchased with drug distribution proceeds.
The case was investigated by the Drug Enforcement Administration (DEA) and Health and Human Services (HHS), and is being prosecuted by Assistant United States Attorneys Mike Lang and Matthew Diggs.
Ambulance Company Driver Sentenced to PrisonRead the Press Release
PHILADELPHIA – Valeriy Davydchik, 59, of Philadelphia, PA, was sentenced today to 24 months in prison for his role in a conspiracy to defraud Medicare involving Penn Choice Ambulance Inc., located in Camp Hill, PA and Huntingdon Valley, PA. On April 9, 2013, the defendant, Anna Mudrova, Yury Gerasyuk, Mikhail Vasserman, Irina Vasserman, Aleksandr Vasserman, Khusen Akhmedov, and Penn Choice Ambulance Inc. were indicted and charged with conspiracy to commit health care fraud and related charges. All defendants have pleaded guilty and await sentencing before U.S. District Court Judge Juan R. Sànchez.
From September 2009 through January 2013, Penn Choice transported patients who were able to walk and could travel safely by means other than ambulance and who, therefore, were not eligible for ambulance transportation under Medicare requirements. Penn Choice falsified reports to make it appear that the patients needed to be transported by ambulance. Penn Choice billed Medicare for these medically unnecessary services. As a result, Penn Choice caused Medicare to pay more than $1.5 million based on these fraudulent claims. Defendant Davydchik joined Penn Choice in 2011 as an ambulance driver. He transported patients who walked to and from the ambulance, and often drove patients to medical appointments in his personal vehicle. Penn Choice submitted claims to Medicare for ambulance transport for these patients. Defendant Davydchik also falsified records and delivered kick-back payments to Medicare beneficiaries to induce them to be transported by Penn Choice ambulance even though such transport was not medically necessary.
In addition to the prison term, U.S. District Court Judge Juan R. Sanchez ordered defendant Davydchik to pay restitution to Medicare and imposed a 3-year term of supervised release after imprisonment. The Court also ordered the forfeiture of any assets traceable to the offense, and in lieu of assets, a money judgment against the defendant of $870,310.14.
The case was investigated by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of the Inspector General. It is being prosecuted by Assistant United States Attorney M. Beth Leahy.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Alton Doctor Sentenced on Charges of Health Care Fraud and Illegal Dispensation of Controlled SubstancesRead the Press Release
Follow @SDILNewsViwathna Bhuthimethee, 69, a medical doctor who operated the Walk In Clinic, located on East Broadway Street in Alton, Illinois, was sentenced, today, in district court to twelve months and a day in federal prison on his guilty plea to the fifteen felony counts of an indictment which charged health care fraud against the Illinois Medicaid program and illegal distribution of Schedule III controlled substances (Hydrocodone) and Schedule IV controlled substances (Xanax) by prescribing outside the usual course of professional conduct and without legitimate medical purpose, Stephen R. Wigginton, the United States Attorney for the Southern District of Illinois announced. The Court also imposed a $5,000 fine, a $1,500 special assessment, restitution to Medicaid of $397.48, and two years of supervision following release from prison.
“Our evidence showed, for most patients, that Bhuthimethee did not operate a legitimate medical practice, but instead was engaged in a scheme to distribute controlled substances illegally, thereby defrauding Health Care Benefit Programs, namely, Illinois Medicaid, by running what was in essence a prescription service for drug addicts, commonly known as a ‘Pill Mill’.” said United States Attorney Wigginton. “As I have long noted – whether you are a doctor, a lawyer, a pharmacist, or an accountant, you cannot hide behind a license and a diploma. If you commit federal crimes, you will be prosecuted!” The illegal distribution charges involved four specific patients to whom Bhuthimethee continued to prescribe controlled substances in spite of the patients’ out of control behavior, overdoses and failed drug screens.
The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Drug Enforcement Administration; and the Federal Bureau of Investigation, the Illinois State Police, Medicaid Fraud Control Bureau; the Alton Illinois Police Department and the Madison County Coroner’s Office. The prosecution was handled by Assistant United States Attorney Michael J. Quinley and Special Assistant United States Attorney Stuart Zander.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General, or, you may call 1-800-447-8477.