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15 May 2014
Luzerne County Woman Pleads Guilty to Transporting A Person in Interstate Commerce to Engage in ProstitutionRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that an Edwardsville woman pleaded guilty today before U.S. District Court Judge Robert D. Mariani to aiding and abetting another person in transporting a female from Pennsylvania to New Jersey to engage in prostitution.
According to United States Attorney Peter J. Smith, the defendant, Kyoni Humphrey a/k/a “Kyoni Nieves,” age 24, admitted that she helped a co-defendant commit the crime by renting and driving a vehicle used to transport the female to motels in Pennsylvania and New Jersey to engage in prostitution, renting motel rooms, and posting “escort” advertisements and photographs on the backpage.com website during May and June of 2013.
Humphrey was indicted by a federal grand jury in January 2014, as a result of an investigation by U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), the Pennsylvania State Police, and the Luzerne County District Attorney’s Office.
The case is being prosecuted by Assistant U.S. Attorney Francis P. Sempa.
Humphrey faces up to ten years in prison and a $250,000 fine. Judge Mariani ordered a pre-sentence investigation to be completed and scheduled sentencing for the week of August 11, 2014.
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."
Local Man Sentenced for Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Michael Paul Torres, 34, has been ordered to prison following his conviction of sexual exploitation of a child, more commonly referred to as production of child pornography, announced United States Attorney Kenneth Magidson. Torres, of Corpus Christi, pleaded guilty Feb. 28, 2014.
Today, Senior U.S. District Judge Hayden Head sentenced Torres to a total of 16 years in federal prison to be immediately followed by 16 years of supervised release. Additional testimony was provided by the victim and her family describing how this crime has and continues to traumatize them. In determining an appropriate sentence, the court considered the lasting harm done to the victim as well as the need to protect the public from Torres in the future.
On Oct. 28, 2013, a minor female reported that Torres had sexually assaulted her earlier that day. Torres was located and arrested and admitted to sexually assaulting the victim. At the time of his arrest, Torres was in possession of a cell phone which contained pornographic images he had taken of his victim.
Torres will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Corpus Christi Police Department’s Internet Crimes Against Children Task Force and the FBI.
This case, prosecuted by Assistant United States Attorney lance Duke, 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."
Local Company Charged with Improper Storage of Explosive Hazardous WasteRead the Press Release
PHILADELPHIA – An information, filed on May 7, 2014, charges Action Manufacturing Company with illegal storage of explosive hazardous waste at its facility in Atglen, Chester County, PA, and transportation of hazardous material in violation of regulations, announced United States Attorney Zane David Memeger.
Action Manufacturing makes timing and arming devices for munitions and explosives. Its manufacturing process generates explosive solid waste, that must be disposed of in accordance with the Resource Conservation and Recovery Act. According to the information, instead of sending its waste to an approved treatment, storage and disposal facility, Action Manufacturing stockpiled identified explosive hazardous waste at its Atglen facility without a permit, including scrap parts and components that were years or even decades overdue for disposal. Action Manufacturing also violated Department of Transportation recordkeeping regulations for transporting explosive material on the public roads.
If convicted, Action Manufacturing faces a maximum possible sentence of five years of probation, with a mandatory minimum term of one year of probation, a $50,000 fine for violating transportation regulations, and fine of $100,000 per day for its storage violation, and a special assessment of $800.
The case was investigated by the Environmental Protection Agency's Criminal Investigations Division, and the United States Department of Transportation Office of Inspector General. It is being prosecuted by Assistant United States Attorney Elizabeth Abrams.
Click here to view the indictment
An Indictment, Information or Criminal Complaint 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, 215-861-8525Lewiston Man Sentenced to 20 Years for Transporting Child PornographyRead the Press Release
Contact: Craig M. Wolff
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Fredrick W. Butler, Jr., 44, of Lewiston, was sentenced today in U.S. District Court by Judge
Nancy Torresen to 20 years in prison, to be followed by a lifetime of supervised release, for transporting child pornography. Butler pled guilty to the offense on December 20, 2013.According to court records, in April of last year, Butler sent an email message to an individual in Oregon attaching 19 images, most of which depicted minors engaged in sexually explicit conduct. Court records also show that in 2001, Butler was convicted in federal court for receiving child pornography; in 1995, he was convicted in state court of gross sexual assault. As a result of his prior convictions, Butler was subject to an enhanced sentence of at least 15 years in prison.
The investigation was conducted by U.S. Immigration and Customs Enforcement’s
Homeland Security Investigations.Kannapolis Couple Sentenced on Child Pornography ChargesRead the Press Release
GREENSBORO, N.C. –A Kannapolis, North Carolina, couple have been sentenced for their involvement with child pornography, announced United States Attorney Ripley Rand.
On May 13, 2014, Steven Anthony Webb, age 42, was sentenced to 120 months incarceration and 15 years supervised probation for accessing child pornography with the intent to view it. On May 14, 2014, Tracy Ann Webb, age 38, was sentenced to 36 months in prison and 1 year supervised release for misprision of a felony. Chief United States District Judge William L. Osteen, Jr., was the sentencing judge in both cases. Steven Webb is a former City of Kannapolis police officer.
The case was investigated by the Cabarrus County Sheriff’s Office and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Anand Ramaswamy.
KC Man Sentenced to 15 Years for Illegal FirearmsRead the Press Release
Project Ceasefire
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing firearms.
Christopher J. Harris, 31, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 15 years in federal prison without parole. Harris was sentenced as an armed career criminal due to his prior felony convictions.
On Feb. 12, 2014, Harris pleaded guilty to being a felon in possession of firearms. Harris admitted that he was in possession of a Jennings .22-caliber pistol and a Smith & Wesson .38-caliber revolver on July 17, 2013.
Law enforcement officers found the loaded firearms (along with two more loaded Smith & Wesson .38-caliber revolvers and 19 baggies of cocaine and marijuana) at Harris’s residence while executing a search warrant as part of a drug-trafficking investigation.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Harris has two prior felony convictions for distributing a controlled substance and a prior felony conviction for assault.
This case was prosecuted by Assistant U.S. Attorney Jess Michaelsen. It was investigated by the Kansas City, Mo., Police Department.
Project Ceasefire
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.KC Man Sentenced for Possessing PCP to DistributeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for possessing phencyclidine, or PCP, to distribute.
Jamel Jackson, 37, of Kansas City, was sentenced by U.S. District Judge Howard F. Sachs to 10 years in federal prison without parole.
On Dec. 23, 2013, Jackson pleaded guilty to possessing PCP with the intent to distribute.
Jackson was arrested on Dec. 21, 2011, by Kansas City police detectives who were conducting surveillance on him in order to arrest him on an outstanding Jackson County warrant for drug trafficking. At the time of his arrest, Jackson was driving a rental car. When the car was searched, investigators found the PCP, including two packages of More brand cigarettes (which are commonly dipped into PCP liquid by distributors and then smoked by PCP users), four small glass bottles containing PCP residue and a bottle in Crown Royal bag containing 128.77 grams of PCP liquid.
While he was detained after his arrest, Jackson made several telephone calls from the monitored detention unit phone system. During these calls, he made several statements about the rental car he had been driving and its contents. In one call Jackson stated, “I could’ve swore I hid them things in there.”
This case was prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.Justice Department Sues to Shut Down Montgomery, Alabama, Tax Return PreparerRead the Press Release
The United States filed a complaint today to bar Laquanda O. Gilmore (aka Laquanda Garrott) and her company, L&g Associates LLC, from preparing federal tax returns for others, the Justice Department announced. The complaint alleges that Gilmore has prepared returns that falsely claim fuel-tax and earned income tax credits.
According to the complaint, Gilmore has repeatedly and intentionally claimed bogus fuel-tax credits for her customers. The fuel-tax credit is available only to taxpayers who operate farm equipment or off-highway business vehicles. It is not available for vehicles driven on highways , nor is it available for fuel used for commuting to and from work. The complaint alleges that Gilmore prepared returns that claimed absurdly large fuel-tax credits for taxpayers who worked at national retail businesses.
The complaint also alleges that Gilmore repeatedly prepared tax returns that improperly claimed the earned income tax credit (EITC). To claim the EITC, a taxpayer must have “earned income.” According to the complaint, Gilmore repeatedly claimed that her customers earned income from wages or salaries, even though Gilmore did not attach any Forms W-2, which provide information about an employee’s income and tax withholdings, to those customers’ returns. According to the complaint, Internal Revenue Service (IRS) records indicate that no Forms W-2 were issued to those customers in the years at issue.
Return-preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2014 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Sues to Shut Down Montgomery, Alabama, Tax Return PreparerRead the Press Release
WASHINGTON – The United States filed a complaint today to bar Laquanda O. Gilmore (aka Laquanda Garrott) and her company, L&g Associates LLC, from preparing federal tax returns for others, the Justice Department announced. The complaint alleges that Gilmore has prepared returns that falsely claim fuel-tax and earned income tax credits.
According to the complaint, Gilmore has repeatedly and intentionally claimed bogus fuel-tax credits for her customers. The fuel-tax credit is available only to taxpayers who operate farm equipment or off-highway business vehicles. It is not available for vehicles driven on highways, nor is it available for fuel used for commuting to and from work. The complaint alleges that Gilmore prepared returns that claimed absurdly large fuel-tax credits for taxpayers who worked at national retail businesses.
The complaint also alleges that Gilmore repeatedly prepared tax returns that improperly claimed the earned income tax credit (EITC). To claim the EITC, a taxpayer must have "earned income." According to the complaint, Gilmore repeatedly claimed that her customers earned income from wages or salaries, even though Gilmore did not attach any Forms W-2, which provide information about an employee's income and tax withholdings, to those customers' returns. According to the complaint, Internal Revenue Service (IRS) records indicate that no Forms W-2 were issued to those customers in the years at issue.
Return-preparer fraud is one of the IRS' Dirty Dozen Tax Scams for 2014. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Documents:
United States v. Laquanda O. Gilmore, etc., et al.
Complaint for Permanent Injunction and Other Relief
(PDF documents)Portable Document Format (PDF) files may be viewed with a free copy of Adobe Acrobat Reader
Accessibility InformationJury Convicts British National in $14 Million Computer Equipment SchemeRead the Press Release
HOUSTON – Mark Allan James, 47, a citizen of the United Kingdom (UK), has been convicted for conspiring with a number of other individuals to defraud Hewlett-Packard (HP) of millions of dollars, announced United States Attorney Kenneth Magidson. James utilized straw buyers to make false representations in order to fraudulently secure HP computer equipment at steeply discounted rates. The verdict was returned moments ago after seven days of trial and approximately five hours of deliberation.
The trial evidence showed that James recruited individual business owners from around the globe to pose as persons interested in securing a large volume of computing products. He then directed them to falsely state the procured products would be used internally by those individuals’ businesses and not be resold. Based upon those false representations, HP applied steep discounts to the products for various business reasons to include the opportunity for future large volume sales, further utilization of HP products in the customer's technology infrastructure and continued maintenance of existing HP products. These types of transactions fell under HP’s “Big Deal” program and HP would not have offered the degree of discount on its products, which often reach millions of dollars in a single transaction, without the false representations that the products would be used internally and not be re-sold.
Once negotiations were complete on a Big Deal, James would receive money via international wire transfer from the company for whom James was procuring the discounted products, identified in the indictment as Company A. That company wired money from the United States to a bank account James maintained in the UK in the name of his company, Roamer Media Ltd. James would then send the funds to the bank accounts of the straw buyers in Canada, the United States and Singapore. After the straw buyers received the funds from the Roamer Media bank account, they then forwarded payment for the products to HP or its partners, thereby further deceiving HP and its partners into believing that the computer equipment was being purchased by the straw buyer. In reality, the HP computer equipment never reached the straw buyers, but was instead diverted for re-sale by Company A.
The trial included testimony from members of HP’s Global Security and Brand Protection Departments as well as one of the straw buyers who assisted James in fraudulently procuring HP products on his behalf. Trial evidence included a large number of emails between James and others which demonstrated the level of deception used to deceive HP at every stage of the fraudulent transactions. In addition to the use of straw buyers, James also took care to hide his true identity and the role of Company A when inspecting the products prior to shipping. He also took care to disguise the true destination of the products by either routing them to an intermediary location or utilizing blind shipping techniques that hid the fact that the products were ultimately destined for Company A.
James was found guilty of conspiring to direct four different straw buyer transactions, spanning between May 2009 and November 2011. During one undercover transaction, James unwittingly corresponded with individuals cooperating with law enforcement in an attempt to fraudulently procure a Big Deal discount. The estimated losses to HP are in excess of $14 million.
James faces up to 20 years imprisonment and up to a $250,000 fine in connection with the conspiracy to commit wire fraud. He faces the same sentence for his conviction to conspiring to commit international money laundering, as well as a fine of up to $500,000 or twice the value of the laundered funds, whichever is greater.
The case was investigated by the United States Postal Inspection Service and is being prosecuted by Assistant United States Attorneys Jason Varnado and John Pearson.
Judge Sentences Armed Robber to 41 1/2 Years in PrisonRead the Press Release
PHILADELPHIA – Hakim King, 28, of Philadelphia, PA, was sentenced today to 498 months in prison for his role in two armed robberies of convenience stores. King and his co-defendant, Rezekiel Harris, robbed a Wawa on Bryn Mawr Avenue in Radnor, on February 9, 2012, and, on February 12, 2012, robbed a Sunoco A-Plus store, on Conshohocken State Road in Bala Cynwyd. In one of the robberies, a victim was hit by debris when the defendants fired a gun was fired into the concrete floor before taking the store’s $1,225 in proceeds. King was convicted at trial on April 8, 2014, of two counts each of robbery which interfered with interstate commerce and using and carrying a firearm during a crime of violence.
In addition to the prison term, U.S. District Court Judge Michael Baylson ordered five years of supervised release, $1,914 in restitution, and a $400 special assessment.
Rezekiel Harris, was sentenced on May 6, 2014 to 20 years in prison.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and was prosecuted by Assistant United States Attorney Jose Arteaga.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Indictment: Officer Takes Delivery Driver's Place to Break up Three-Pound Meth DealRead the Press Release
WICHITA, KAN. – Two Wichita men have been charged with drug trafficking after a Wichita police officer posed as a delivery driver at a meeting in which three pounds of methamphetamine were to change hands, U.S. Attorney Barry Grissom said.
Michael Ortega-Alvarez, 45, Wichita, Kan., and Manuel Bencomo-Rodriguez, 47, were charged Wednesday with one count of conspiracy to possess with intent to distribute methamphetamine. It is alleged Wichita police stopped Ortega-Alvarez for a traffic violation on May 6, 2014. They found approximately three pounds of methamphetamine in his vehicle. When investigators learned Ortega-Alvarez was on his way to make a delivery to a man he didn’t know, an officer working undercover took his place.
Using Ortega-Alvarez’s phone, the officer received instructions to drive to a convenience store at 31st and Hillside and wait for a man in a blue car. Bencomo-Rodriguez arrived driving a blue Chevrolet Lumina. He led the officer to another location, after which they returned to the convenience store and Bencomo-Rodriguez was arrested.
If convicted, the defendants face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Wichita Police Department investigated. Special Assistant U.S. Attorney Michelle Jacobs is prosecuting.
OTHER INDICTMENTS
Juan Antonio Herrera-Zamora, 30, and Jose Guadalupe Montoya-Valenzuela, 42, are charged with one count of attempted possession with intent to distribute methamphetamine. In addition Herrera-Zamora is charged with one count of possession with intent to distribute methamphetamine and one count of unlawful possession of a firearm in furtherance of drug trafficking. The crimes are alleged to have occurred April 17, 2014, in Kansas City, Kan.
Upon conviction, the crimes carry the following penalties: Attempted possession with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine: Not less than 10 years in federal prison and a fine up to $10 million.
Possession of a firearm in furtherance of drug trafficking: Not less than five years and a fine up to $250,000.The Kansas City International Airport Police and the Drug Enforcement Administration’s Kansas City Interdiction Task Force investigated. Special Assistant U.S. Attorney Erin Tomasic is prosecuting.
Clarence Smith, III, 31, is charged with failing to register as required by the Sex Offender Registration Act. The crime is alleged to have occurred March 1, 2013, in Wyandotte County, Kan.If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Kim Martin is prosecuting.
Jose Pesina Lopez, 61, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found May 2, 2014, in Sedgwick County, Kan.
If convicted, he faces a maximum penalty of two years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Greek Man Convicted of Fraud and Money Laundering ChargesRead the Press Release
BOSTON – A Greek man was convicted in U.S. District Court in Boston yesterday for his role in perpetrating a multi-million scheme which defrauded developers of $7.9 million.
Following a three-week jury trial, Evripides Georgiadis, 49, of Larisa, Greece, was convicted of conspiracy to commit wire fraud, 11 counts of wire fraud, and conspiracy to commit money laundering. He was indicted in June of 2011. Sentencing is scheduled for August 18, 2014.
Between 2007 and 2011, Georgiadis participated in a conspiracy to defraud developers who were seeking financing for large-scale alternative energy and commercial projects by pretending to be a representative of a multi-billion dollar fund located in Luxembourg. Georgiadis and his co-conspirators convinced developers to give deposits between $300,000 and $1 million to this fake fund with the promise that the deposit would be fully refundable. Georgiadis and his co-conspirators spent and transferred the developers' deposit money out of the country, and the fake fund never financed any projects. In perpetrating this scheme, Georgiadis helped create fake letters of credit and a fake New Zealand bank, all to reassure developers about the safety of their deposits.Georgiadis’ co-defendants, John Condo, Michael Zanetti and Frank Barecich, have all pleaded guilty and are awaiting sentencing.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Susan Hensley Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Alex Grant and Karen L. Goodwin of Ortiz’s Springfield Branch Unit.
Glen Burnie Man Pleads Guilty to Illegal Possession of Guns and Improvised Explosive DevicesRead the Press Release
Baltimore, Maryland – Todd Wheeler, age 28, of Glen Burnie, Maryland, pleaded guilty today to being a prohibited person, specifically an unlawful user and a person addicted to drugs, in possession of firearms, including improvised explosive devices.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Anne Arundel County Police Chief Kevin Davis; and Fire Chief Michael E. Cox, Jr. of the Anne Arundel County Fire Department.
According to Wheeler's plea agreement, on January 1, 2014, Wheeler was treated at the hospital for injuries the he told hospital officials he sustained from an explosion when he was attempting to make fireworks. Wheeler attempted to flee the Emergency Room but was apprehended by police who were called to the scene. Police were directed to the home of Wheeler’s grandmother in Millersville, Maryland. She confirmed that Wheeler often stayed there and gave police permission to search the home and an outbuilding located on her property. Officers recovered chemicals used to manufacture high explosives, as well as other explosive materials. Investigators learned that Wheeler received packages at that address and stored the materials in the outbuilding.
The next day, ATF agents interviewed Wheeler, who remained in custody at the hospital. Wheeler advised agents that he was injured when he mixed chemicals and they exploded. He also told the agents that he had previously made explosive devices and detonated them in his yard. A search warrant was executed at Wheeler’s residence in Glen Burnie by Anne Arundel County Police. Over the next two days law enforcement recovered, among other things: several improvised explosive devices, as well as the chemicals and explosive materials used to make them; drugs and drug paraphernalia; a Walther pistol, flare gun and signal flare launcher, along with a conversion kit to allow the launcher to shoot 12 gauge shot gun shells; and 12 gauge shot gun shells.
Further investigation revealed that Wheeler had history of drug addiction dating back to at least 2006. At the time of this incident Wheeler was on probation for driving under the influence of a controlled substance and in a drug test conducted by his state probation officer shortly before the incident Wheeler tested positive for seven different controlled substances.
Wheeler faces a maximum penalty of 10 years in prison. U.S. District Judge William D. Quarles has scheduled sentencing for September 8, 2014 at 1:00 p.m. Wheeler remains detained.
United States Attorney Rod J. Rosenstein commended the ATF, FBI, Anne Arundel County Police Department and Anne Arundel County Fire Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys A. David Copperthite and Harvey E. Eisenberg, who are prosecuting the case.
Georgia Women Used Stolen Identities to File for $2M in False Tax Return RefundsRead the Press Release
PITTSBURGH - Three Georgia women pleaded guilty in federal court to a charge of wire fraud conspiracy, United States Attorney David J. Hickton announced today.
Heather A. Smith, 26, of Summerville, Ga.; Astrid P. Perry, 37, of Summerville, Ga.; and Beverly J. McHenry, 57, of Rome, Ga., pleaded guilty to one count before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, these defendants conspired with other persons to use stolen identities to file false federal 2010 and 2011 federal income tax returns requesting refunds totaling nearly $2,000.000 into banks and credit unions in Pittsburgh and Georgia.
Judge Fischer scheduled sentencing for Sept. 26, 2014, at 9 a.m. for McHenry and 11:30 a.m. for Perry. Smith’s sentencing is scheduled for Sept. 30, 2014, at 9 a.m. The law provides for a maximum total sentence of not more than 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation, conducted the investigation that led to the prosecution of these defendants.
Galveston County Man Sentenced for Orange, Texas Bank RobberyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 37-year-old Bacliff, Texas man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Samuel David Sanford, III, pleaded guilty on Oct. 8, 2013 to bank robbery and was sentenced to 72 months in federal prison today by U.S. District Judge Ron Clark.According to information presented in court, on Dec. 19, 2012, Sanford entered the JP Morgan Chase Bank located in the 3100 block of 16th Street in Orange, Texas, and presented the teller with a threatening note demanding money. Sanford was given $25,859.00 and fled the bank. He was identified by tipsters after the robbery and indicted by a federal grand jury on Jan. 23, 2013.
Sanford has also been ordered to pay restitution in the amount of $25,859.00.
This case was investigated by the Federal Bureau of Investigation and the Orange Police Department and prosecuted by Assistant U.S. Attorney John Craft.
Four Ohio Businessmen Associated with Cadillac Ranch Restaurants Plead Guilty to Tax ChargesRead the Press Release
Four businessmen involved in the development, operation and ownership of restaurants, including Cadillac Ranch restaurants, in Ohio and elsewhere in the United States, pleaded guilty today to tax charges, the Justice Department and Internal Revenue Service (IRS) announced.
Joel Field from Marion, Ohio, Jon Field from Dublin, Ohio, Eric Schilder, of Marion, and Paul Butler, of Dublin, all pleaded guilty before Judge Edmund A. Sargus Jr. in U.S. District Court for the Southern District of Ohio today.
Joel Field, 58, pleaded guilty to tax evasion, in which he admitted that he had an unpaid tax liability that exceeded $130,000 from tax years 1997 through 2001. Joel Field was an owner and operator of Cadillac Ranch restaurants and bars. From March 2004 through May 2009, when the IRS attempted to collect the outstanding amount of taxes owed by Joel Field, he provided false information to the IRS by failing to report assets and income. Further, according to publicly filed documents, Joel Field transferred his rental properties, car and business into the names of his relatives in an effort to conceal his ownership from the IRS and to prevent the IRS from seizing assets. Despite transferring these assets to nominees, Joel Field continued to control them and the income they generated.
According to documents filed with the court, in 2008, the government initiated foreclosure proceedings against Joel Field’s personal residence in an effort to collect the approximately $319,000 he then owed the IRS. After the government initiated foreclosure proceedings, Joel Field submitted more false information to the IRS, including the filing of false tax returns for tax years 2006 through 2009. Furthermore, Joel Field caused his son to file false income tax returns for two years by causing his son to report income that actually belonged to Field in order to conceal his own income from the IRS. Finally, Joel Field caused his attorney to send correspondence to the government wherein representations were made that falsely underreported the value of Joel Field’s restaurant. In 2009, based on the false information provided, the government agreed to settle its foreclosure lawsuit against Joel Field’s home for $149,000 less than the amount he then owed the IRS in taxes, penalties and interest. As part of the plea agreement, Joel Field agreed to pay $349,777 in restitution to the IRS.
According to documents filed with the court, Jon Field, 58, pleaded guilty to a conspiracy to file false income tax returns for the years 2006 through 2010. According to court documents, in 2003, Jon Field created JHF Property Holdings LLC, which was purportedly owned by his son, but which Jon Field used to operate the Cadillac Ranch and other restaurants. For the years 2006 through 2010, Jon Field agreed with others to prepare and file false income tax returns with the IRS for Jon Field which falsely underreported the amount of income that he earned from his business ventures. His tax returns for these five years failed to report at least $220,000 in income earned through JHF Property Holdings funds and other companies. According to publicly filed documents, Jon Field diverted business funds for personal expenditures, including to make payments on his vehicles, to pay his taxes, to pay personal charges on credit cards and for cash withdrawals. Jon Field’s false filings resulted in a tax loss of $174,458, and he agreed to pay restitution to the IRS according to his plea agreement.
Eric Schilder, 52, pleaded guilty to filing a false income tax return for 2008. According to publicly filed documents, Schilder participated in the design, construction and, ultimately, the marketing and management of several Cadillac Ranch restaurants and bars. Schilder’s conduct caused a tax loss to the IRS of approximately $95,000.
Paul Butler, 46, pleaded guilty to a conspiracy to defraud the United States. Butler participated in the design, development, building and operation of Cadillac Ranch restaurants and bars. According to public filings, Butler admitted that he amassed over $150,000 in unpaid taxes for the years 1996 through 2001. When the IRS attempted to collect the funds in 2005, Butler admitted that, among other things, he and others created and provided to a false promissory note to the IRS. Butler engaged in conduct, and caused others to engage in conduct, intended to obstruct the IRS from collecting the outstanding taxes that Butler owed.
Joel Field faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release for his tax evasion charge. Jon Field also faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release for his conspiracy charge. Paul Butler also faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release for his conspiracy charge. Eric Schilder faces a maximum sentence of three years in prison, a $250,000 fine and one year of supervised release for filing a false income tax return.
The case was investigated by the IRS-Criminal Investigation Division and is being handled by Trial attorney Richard M. Rolwing for the Justice Department’s Tax Division. Additional information about the Tax Division and its enforcement efforts may be found at the division website . Additional information about tax fraud schemes to watch out for may be found on the IRS Criminal Investigation website .
Former U.S. Congressional Aide Sentenced in Manhattan Federal Court for Accepting Illegal GratuitiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SAMUEL PIERRE, who was employed by a Member of Congress at the time of his offense, was sentenced yesterday in Manhattan federal court to three months home confinement for accepting an illegal gratuity in return for promising to provide immigration-related assistance that never was provided. PIERRE’s co-defendant, KENOL JANVIER, previously was sentenced to four months home confinement for his role in the offense. PIERRE and JANVIER both were sentenced by U.S. Magistrate Judge Kevin N. Fox.
According to court filings and statements made in court:
From 2007 to July 2009, PIERRE was employed by a Member of Congress as a Brooklyn South Liaison in the Congressman's District Office in Brooklyn, New York. As the Brooklyn South Liaison, PIERRE's job responsibilities included helping the Congressman's constituents with immigration-related issues, by, for example, inquiring about the status of constituents' immigration-related matters pending before the Department of Homeland Security (“DHS”).
In the late spring or early summer of 2008, PIERRE was a guest on a radio show hosted by JANVIER and they discussed, among other things, PIERRE’s job with the Congressman and issues related to the Haitian community, including immigration. During the radio show, listeners were invited to call in with any questions, but rather than help certain listeners who called the show seeking immigration-related advice, JANVIER and/or PIERRE instructed them to call "the office" for free assistance. The “office” phone number, however, was JANVIER’s cellphone number and when listeners called it, JANVIER arranged to meet them in person. JANVIER then met with these individuals and promised that PIERRE and he would be able to assist them with their immigration-related matters in exchange for a set fee. JANVIER took hundreds of dollars from the individuals as a down payment for the promised help with their immigration-related matter.
Thereafter, PIERRE and JANVIER spoke to the individuals on the phone, including using a landline phone at the Congressman’s District Office, regarding the remainder of the fee due, which some of them later paid to JANVIER. In connection with the scheme, PIERRE sent e-mails using his Congressional e-mail account in which he, on behalf of the Congressman’s Office, inquired about the status of these individuals’ immigration-related matters and claimed that the individuals were constituents of the Congressman when, in truth and in fact, they were not. The individuals were unaware that these e-mails had been sent and never received any actual assistance with their immigration-related matters from either PIERRE or JANVIER.
When the individuals who had paid JANVIER to help them tried to contact PIERRE and JANVIER to inquire about the status of their immigration matters, including visiting PIERRE at the Congressman’s Office, PIERRE and JANVIER either did not return the calls or continued to promise to help them but did not. Later, when the individuals demanded the return of their money, PIERRE and JANVIER ignored their requests and never paid them back. In connection with the scheme, PIERRE took money and things of value from JANVIER. In addition, PIERRE took money from JANVIER in connection with JANVIER’s own immigration matter and sent e-mails from his Congressional e-mail account to DHS and wrote a letter from the Congressman’s Office to a federal government immigration office about JANVIER’s immigration application.
In addition to home confinement, Judge Fox sentenced PIERRE, 29, of Brooklyn, New York, to three years of probation and ordered him to pay a $5,000 fine and a $25 special assessment fee. In addition, PIERRE was ordered to pay restitution in the amount of $11,300 joint and several with JANVIER.
JANVIER, 45, of Brooklyn, New York, previously was sentenced on April 24, 2014, by Judge Fox to four months home confinement and three years of probation and was ordered to pay a $25 special assessment fee. In addition, JANVIER was ordered to pay restitution in the amount of $11,300 joint and several with PIERRE.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
These prosecutions are being handled by the Office’s Public Corruption Unit. Assistant United States Attorney Carrie H. Cohen is in charge of the prosecutions.
U.S. v. Samuel Pierre and Kenol Janvier Complaint
U.S. v. Samuel Pierre Complaint
U.S. v. Kenol Janvier ComplaintFormer Tulsa Businessman Sentenced for $2.7 Million FraudRead the Press Release
TULSA, Okla. — A former Tulsa businessman was sentenced today in Federal court to 27 months in prison for having defrauded ONB Bank out of more than $200,000, announced Danny C. Williams Sr., United States Attorney for the Northern District of Oklahoma.
Tommy Craig Conaway, 59, now of Blackwell, pleaded guilty to bank fraud, admitting that in February 2004 he misrepresented the value of collateral that his company, CCR Investments, LLC, pledged to ONB Bank in order to draw upon its line of credit at the bank.
In imposing the sentence, U.S. District Court Chief Judge Gregory K. Frizzell considered other occasions in which Conaway defrauded ONB Bank by misrepresenting collateral available to secure his company’s line of credit. In addition, the court considered Conaway’s conduct in defrauding the Bank of Oklahoma on lines of credit extended to other businesses managed by Conaway, causing a loss of nearly $2.5 million to BOK.
The court ordered Conaway to pay restitution to both banks in a total amount of over $2.7 million. In addition to his prison term, Conaway was ordered to forfeit $290,962.
The case investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Kevin C. Leitch, Jeffrey A. Gallant and Catherine Depew.
Former Owner of Airline Fuel Supply Company Sentenced to Prison for Role <br /> in Scheme to Defraud Illinois-Based Ryan International AirlinesRead the Press Release
A former owner and operator of a Florida-based airline fuel supply service company was sentenced today to serve 50 months in prison for participating in a scheme to defraud Illinois-based Ryan International Airlines, the Department of Justice announced.Sean E. Wagner, the former owner and operator of Aviation Fuel International Inc. (AFI), was sentenced in the U.S. District Court for the Southern District of Florida in West Palm Beach to serve 50 months in prison and to pay $202,856 in restitution. On Aug. 13, 2013, a grand jury returned an indictment against Wagner and AFI, charging them for their roles in a conspiracy to defraud Ryan. On March 6, 2014, Wagner pleaded guilty to one count of conspiracy to commit honest services wire fraud. According to court documents, from at least as early as December 2005 through at least August 2009, Wagner and others at AFI made kickback payments to Wayne Kepple, a former vice president of ground operations for Ryan, totaling more than $200,000 in the form of checks, wire transfers, cash and gift cards in exchange for awarding business to AFI. The charges against AFI were dismissed on Feb. 21, 2014.
Ryan provided air passenger and cargo services for corporations, private individuals and the U.S. government – including the U.S. Department of Defense and the U.S. Department of Homeland Security.
“Awarding government contracts in exchange for payoffs is a crime the Antitrust Division takes seriously,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Today’s sentence reaffirms the division’s commitment to vigorously prosecute individuals who engage in this behavior.”“This sentencing highlights the continuing commitment of the DCIS to thoroughly investigate and bring to justice any companies or individuals who engage in fraudulent and corrupt practices that undermine the integrity of Department of Defense procurement programs,” said John F. Khin, Special Agent in Charge of the Defense Criminal Investigative Service Southeast Field Office.
As a result of the ongoing investigation, five individuals, including Wagner, have pleaded guilty and have been ordered to serve sentences ranging from 16 to 87 months in prison and to pay more than $780,000 in restitution. An additional individual has pleaded guilty to obstructing the investigation and is currently awaiting sentencing.
The investigation is being conducted by the Antitrust Division’s Washington Criminal I office and the U.S. Department of Defense’s Office of Inspector General’s Defense Criminal Investigative Service, with assistance from the U.S. Attorney’s Office for the Southern District of Florida. Anyone with information concerning anticompetitive conduct in the airline charter services industry is urged to call the Antitrust Division’s Washington Criminal I office at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm.Former Officer Is 12th Sentenced in Connection with Series of Assaults on Inmate at Roxbury Correctional InstitutionRead the Press Release
U.S. District Judge James K. Bredar sentenced Reginald Martin, formerly an officer at Roxbury Correctional Institution (RCI) in Hagerstown, Maryland, to serve 12 months and one day in prison for his role in the assault of inmate Kenneth Davis. RCI officers from three different shifts assaulted Davis in March 2008, in retaliation for a prior incident in which Davis struck an officer.
Martin pleaded guilty on Jan. 9, 2014, to a deprivation of rights under color of law. According to court documents filed in connection with his guilty plea, Martin acknowledged that he witnessed other RCI officers unlawfully assaulting Davis and that he failed to intervene and stop the assault. Martin also admitted that this assault on March 9, 2008, was consistent with practices at RCI, where officers would use force to punish inmates who had engaged in misconduct. Finally, Martin admitted that he and other officers tried to cover up their involvement in the assault of Davis.
“Every person in America has the right to be free from cruel and unusual punishment,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department will continue to protect this right by prosecuting correctional officers who violate the rights of inmates.”
To date, 16 current or former officers at RCI have been convicted in connection with the series of assaults that Davis suffered on March 8-9, 2008. Lanny Harris, Philip Mayo, Jeremy McCusker, Walter Steele, Robert Harvey, Keith Morris, Dustin Norris, Ryan Lohr, Tyson Hinckle, Michael Morgan and Josh Hummerhave already been sentenced by U.S. District Judge Bredar.
The case was investigated by the Frederick Resident Agency of the FBI, and prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Sanjay Patel of the Civil Rights Division, with the assistance of Assistant U.S. Attorney Michael Cunningham of the U.S. Attorney’s Office for the District of Maryland.
Former Local Resident Sentenced for Fraud, Identity Theft, and Failure to Register as Sex OffenderRead the Press Release
TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced today that United States District Judge Robert Hinkle sentenced Jerry Samuel Joseph, 33, formerly of Tallahassee, to a total of 81 months in federal prison on two indictments. One case involved five charges relating to fraudulent federal income tax returns, and the other case involved failing to register as a sex offender.
In a case indicted in the Northern District of Florida, Joseph pled guilty to conspiring to file false claims against the United States, two charges of converting government funds, using the U.S. Postal Service to commit fraud, and using stolen identity information to commit fraud. Joseph was sentenced to 57 months for each of the first four charges and to a 24-month consecutive sentence for using stolen identity information to commit fraud.
This first case involved approximately 71 fraudulent federal income tax returns filed in 2011 and 2012, seeking refunds totaling $352,721. These returns generated actual refunds totaling $134,931.00 in checks that were mailed to an apartment complex in Tallahassee. Joseph created the fraudulent returns, arranged for them to be filed, and directed others to retrieve and to cash the refund checks.
In a second case, indicted in the Eastern District of New York, Joseph pled guilty to failing to register as a sex offender. This case was transferred to the Northern District of Florida for plea and sentencing. Joseph received a 57-month sentence in this case, concurrent with the sentences imposed in the fraud case.
Joseph was previously convicted in South Carolina in 1998 of Criminal Sexual Conduct With a Minor Under the Age of Sixteen, and in Dade County, Florida, in 2006 of Lewd and Lascivious Battery on a Child aged 12 to 16 and of Failing to Register as a Sex Offender. As a convicted sex offender, Joseph was required to register with authorities under the Sex Offender Registration and Notification Act (“SORNA”) and to keep that registration current. Joseph initially registered in 2008, when he was released from the Florida Department of Corrections and moved to Tallahassee. However, after being questioned about his involvement in fraudulent activity, Joseph left Tallahassee in 2009. Agents investigating the fraud case learned that Joseph was living and working in Brooklyn, New York, under the name “Jerry Geudy.” Joseph was arrested on the federal fraud charges and for state probation violations on June 7, 2013. He admitted that he had been living in New York for about four years and that he had not registered as a sex offender during that time.
When released from the Bureau of Prisons, Joseph will serve a ten-year term of supervised release, with requirements that he continue to register under SORNA, that he receive sex offender treatment, and that he have no unsupervised contact with minors. Joseph was also ordered to pay $600 in special monetary assessments. Judge Hinkle advised that he would set a restitution amount at a later date.
U.S. Attorney Marsh praised the joint efforts of the Internal Revenue Service, the Secret Service, the United States Postal Inspectors, and the United States Marshals Service. Assistant U.S. Attorneys Michael T. Simpson (NDFL) and Tyler Smith (EDNY) prosecuted this case.
Former Contract Employee Indicted for Theft of an Estimated $478,000 in U.S. Postal Service PropertyRead the Press Release
Marvis Charles Box, age 67, of Converse, TX, stands charged with stealing an estimated $478,000 of United States Postal Service equipment announced United States Attorney Robert Pitman and U.S. Postal Inspection Service Inspector in Charge Robert Wemyss, Houston Division.
A federal grand jury indictment, returned on May 7, 2014, and unsealed following Box’s arrest on Tuesday, charges the defendant with three counts of theft of Government property. Upon conviction, Box faces up to ten years in federal prison per count.
As a U.S. Postal Service contract employee, Box was responsible for transporting mail to and from the Canyon Lake Post Office. The indictment specifically alleges that on three separate occasions—November 25, 2013; November 30, 2013; and, December 4, 2013—Box stole U.S. Postal Service mail transportation equipment and sold it for personal financial gain. The indictment also includes a demand for forfeiture wherein the Government is seeking a monetary judgment in the amount of $478,169.75. That figure represents the total amount of proceeds allegedly derived from the defendant’s overall mail equipment theft scheme.
Box remains in federal custody pending the outcome of a detention hearing scheduled for 10:00am on May 27, 2014, before U.S. Magistrate Judge Henry Bemporad.
This case was investigated by inspectors with the U.S. Postal Inspection Service. Assistant United States Attorney Michael R. Hardy is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Former Alabama KKK Leader Sentenced to Prison for Cross Burning and Obstruction of JusticeRead the Press Release
Steven Joshua Dinkle, 28, former Exalted Cyclops of the Ozark, Alabama, chapter of the International Keystone Knights of the Ku Klux Klan (KKK), was sentenced today by Chief U.S. District Judge W. Keith Watkins to serve 24 months in prison to be followed by three years of supervised release for his role in a cross burning in 2009, announced the Justice Department and the U.S. Attorney’s Office for the Middle District of Alabama.
On Feb. 3, 2014, Dinkle pleaded guilty to hate crime and obstruction of justice charges related to the cross burning. Specifically, he pleaded guilty to one count of conspiracy to violate housing rights, one count of criminal interference with the right to fair housing and two counts of obstruction of justice.
According to documents filed with the court, Dinkle and one of his KKK recruits, Thomas Windell Smith, met at Dinkle’s home on May 8, 2009, and decided to burn a cross in a local African-American neighborhood. Dinkle constructed a wooden cross about six feet tall, wrapped jeans and a towel around it to make it more flammable and loaded it into Smith’s truck. Around 8:00 p.m., Dinkle and Smith drove to the African-American neighborhood in Ozark. Dinkle unloaded the cross at the entrance to the community and dug a hole in the ground. He poured fuel on the cross, stood it up in the hole in view of several houses and set it on fire. Dinkle and Smith then drove away.
During sentencing, Chief U.S. District Judge Watkins said that it was clear that the purpose of Dinkle’s conduct was “to terrorize people in the community” and that his “message was one of intimidation and violence.”
When questioned by local investigators, Dinkle falsely denied his involvement in the incident and said that he had resigned his office and withdrawn from the KKK months before the cross burning. When approached by the FBI, Dinkle again lied and told a special agent that he had been at home with his girlfriend when the cross burning occurred. He further claimed that he did not know a person who was, in fact, one of his superiors in the KKK at the time of the cross burning.
During the plea hearing, Dinkle admitted that in burning the cross, he intended to scare and intimidate residents of the African-American community by threatening the use of force against them. He further admitted that he burned the cross because of the victims’ race and color and because they were occupying homes in that area.
“Defendant Dinkle chose to burn the cross at the very entrance to an African-American neighborhood so that anyone coming or going would see the fiery cross,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “He intended to intimidate the community’s residents in their own homes and neighborhood. There is no place for such conduct in our society and the department will continue to prosecute these violent acts of hate.”
“It is sad that, in this day and age, people are still filled with such hate,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “To act on such hate and burn a cross turns that hate into a crime which should not, and will not, be tolerated. Prosecuting these type crimes will continue to be a priority of my office.”
Dinkle’s co-conspirator, Smith, pleaded guilty to one count of conspiracy to violate housing rights in December 2013, and he is scheduled to be sentenced on Aug. 19, 2014. Dinkle’s mother, Pamela Morris, is charged with two counts of perjury arising out of the investigation into the cross burning. Her trial is scheduled to begin Aug. 4, 2014.
This case was investigated by the FBI with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.
Fifteen Individuals Sentenced for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of April, fifteen (15) individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
James Arthur STEVENS, age 25, of Morgantown, West Virginia, was sentenced to 30 months in prison for failure to report to probation officer, failure to report change of address, failure to notify probation officer of law enforcement contact and fleeing from officer. STEVENS was originally sentenced on July 25, 2011, to 21 months in prison and six years of supervised release for distribution of heroin within 1,000 feet of a protected location. On July 18, 2013, STEVENS’ supervised release was revoked and he was sentenced to 6 months in prison and 66 months of supervised release for use of a controlled substance and failure to complete drug treatment. STEVENS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Jesse James ROTON, age 46, was sentenced to 24 months in prison for failure to reside at Dismas Charities in St. Albans, West Virginia, and failure to notify probation officer prior to change in residence. ROTON was originally sentenced on May 19, 2011, to 33 months in prison and ten years of supervised release for failure to update sex offender registration. ROTON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Richael DOBBS, age 47, of Fairmont, West Virginia, was sentenced to 15 months in prison for possession and distribution of cocaine, failure to attend substance abuse counseling, failure to submit monthly report forms and associating with a convicted felon. DOBBS was originally sentenced on March 6, 2008, to 78 months in prison and six years of supervised release for the distribution of cocaine and the distribution of crack cocaine within 1,000 feet of a school and playground. In November of 2011, DOBBS’ sentence was reduced to 45 months in prison pursuant to the crack resentencing guidelines. On October 10, 2012, DOBBS’ supervised release was revoked and she was sentenced to 14 months in prison and 58 months of supervised release for possession and use of a controlled substance and alcohol and failure to report for drug testing. DOBBS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Keith A. VALENTINE, age 35, was sentenced to 10 months in prison for failure to abide by rules and regulations of Dismas Charities in St. Albans, West Virginia. VALENTINE was originally sentenced on March 14, 2013, to 21 months in prison and six months of supervised release for failure to update sex offender registration. VALENTINE was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Lateef Jamal LINGHAM, age 39, of Marietta, Ohio, was sentenced to 6 months in prison for failure to notify probation officer of change of residence, failure to submit monthly report forms, testing positive for the use of cocaine and associating with a convicted felon. LINGHAM was originally sentenced on February 21, 2008, to 108 months in prison and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a playground. In November of 2011, LINGHAM’s sentence was reduced to 70 months pursuant to the crack resentencing guidelines. LINGHAM was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Larry Donald SANDY, age 46, of Rosedale, West Virginia, was sentenced to 4 months in prison for possession and use of a controlled substance. SANDY was originally sentenced on August 8, 2012, to 12 months and 1 day in prison and four years of supervised release for manufacturing marijuana. SANDY, who is on bond, will self-report to the designated Federal institution.
Keith LEAVENGOOD, age 47, of Metz, West Virginia, was sentenced to 3 months in prison and 45 months of supervised release for possession and purchase of synthetic marijuana, frequenting places that sell or distribute synthetic marijuana, associating with convicted felon, engaging in illegal conduct and failure to report for drug testing. LEAVENGOOD was originally sentenced on October 11, 2012, to 12 months in prison and four years of supervised release for the distribution of hydrocodone and alprazolam within 1,000 feet of a protected location. LEAVENGOOD, who is on bond, will self-report to the designated Federal institution.
MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
Damon Lucky MITCHELL, age 36, of Martinsburg was sentenced to 14 months in prison for testing positive for the use of marijuana and cocaine, submitting untruthful monthly report form and failure to follow the instructions of the probation officer. MITCHELL was originally sentenced on October 25, 2000, to 219 months in prison and three years of supervised release for the distribution of crack cocaine. In February of 2009, MITCHELL’s sentence was reduced to 177 months in prison and in November of 2011, MITCHELL’s sentence was reduced to 141 months in prison pursuant to the crack resentencing guidelines. On May 23, 2013, MITCHELL’s supervised release was revoked and he was sentenced to 8 months in prison and 28 months of supervised release for testing positive for the use of marijuana and failure to notify probation officer of change of address. MITCHELL was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Colton Lamar PITMAN, age 25, of Charles Town, West Virginia, was sentenced to 14 months in prison failure to be truthful with probation office, associating with convicted felon, use of synthetic marijuana, possession of heroin, failure to participate in drug treatment and failure to report to probation office. PITMAN was originally sentenced on January 27, 2011, to 10 months in prison and three years of supervised release for the distribution of cocaine. On November 29, 2012, PITMAN’s supervised release was revoked and he was sentenced to 8 months in prison and 28 months of supervised release for possession of drug paraphernalia, use of marijuana and illegally obtaining prescription pills. PITMAN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Matthew Richard PACK, age 28, of Martinsburg, was sentenced to 10 months imprisonment for failure to submit monthly report form, failure to notify probation officer of change of residence and employment, failure to make monthly restitution payments and failure to report for drug testing. PACK was originally sentenced on December 12, 2007, to 51 months in prison and three years of supervised release for theft of firearms from a licensed dealer. On August 10, 2012, PACK’s supervised release was revoked and he was sentenced to 7 months in prison and 29 months of supervised release for committing a new offense of domestic battery. PACK was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Marcel Quinton CRAIG, age 25, of Charles Town, was sentenced to 8 months in prison for failure to follow probation officer’s instructions, associating with a convicted felon and new misdemeanor charges for failure to maintain control and leaving the scene of an accident with property damage. CRAIG was originally sentenced on January 26, 2011, to 18 months in prison and four years of supervised release for the distribution of crack cocaine. On November 29, 2012, CRAIG’s supervised release was revoked and he was sentenced to six months in prison and 30 months of supervised release for possession of marijuana, drug paraphernalia and crack cocaine; associating with convicted felons and testing positive for the use of marijuana. CRAIG was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Orson NOEL, age 28, formerly of Brooklyn, New York, was sentenced to 7 months in prison and 38 months of supervised release for testing positive for the use of marijuana, failure to participate in drug treatment, failure to report to probation officer and failure to submit monthly report forms. NOEL was originally sentenced on January 24, 2011, to 24 months in prison and three years of supervised release for possession with intent to distribute crack cocaine. NOEL was remanded to the custody of the United States Marshal pending designation to a Federal institution.
Christina SAYLOR, age 27, of Kearneysville, West Virginia, was sentenced to 6 months in prison for testing positive for the use of heroin and morphine. SAYLOR was originally sentenced on July 27, 2010, to 15 months in prison and six years of supervised release for the distribution of heroin. On December 14, 2011, SAYLOR’s supervised release was revoked and she was sentenced to six months in prison and 66 months of supervised release for failure to report to probation officer and submit a truthful monthly report form and testing positive for the use of morphine. On September 11, 2012, SAYLOR’s supervised release was again revoked and she was sentenced to 10 months in prison and 56 months of supervised release for being untruthful with probation officer concerning contact with co-defendant, avoiding probation officer during attempted home visits and use of heroin and morphine. SAYLOR was remanded to the custody of the United States Marshal pending designation to a Federal institution.
WHEELING DIVISION REVOCATIONS (Judge Frederick P. Stamp, Jr.)
David MCGOWAN, age 49, of Follansbee, West Virginia, was sentenced to 7 months in prison for failure to report for drug testing, use and possession of morphine and oxycodone and unsuccessful discharge from residential drug treatment. MCGOWAN was originally sentenced on July 18, 2011, to 1 day in prison and three years of supervised release. On July 15, 2013, MCGOWAN’s supervised release was revoked and he was sentence to 2 months in prison and 30 months of supervised release for possession and use of oxycodone. MCGOWAN, who is on bond, will self-report to the designated Federal institution.
ELKINS DIVISION REVOCATIONS (Chief Judge John Preston Bailey)
Tobias L. BENNETT, age 40, of Buckhannon, West Virginia, was sentenced to 12 months and 1 day in prison for failure to answer truthfully all inquiries of the probation officer, failure to notify probation officer of change in residence or employment, failure to participate in drug and alcohol treatment, possession of controlled substances, excessive use of alcohol and frequenting places where controlled substances are illegal used. BENNETT was originally sentenced on December 22, 2009, to 46 months in prison and three years of supervised release for conspiracy to possession equipment and chemicals to manufacture methamphetamine. BENNETT was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the revocation hearings by Assistant U.S. Attorneys Zelda E. Wesley, Stephen D. Warner, Shawn A. Morgan, Brandon S. Flower, Paul T. Camilletti and Randolph J. Bernard
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Federal Grand Jury in South Bend Returns IndictmentRead the Press Release
Hammond South Bend Fort Wayne
Fort Wayne, Indiana - The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned the following Indictment on May 14, 2014: Alvaro Rivera-Arvayo, 23, Luis A. Ramirez-Perez, 49, and Matthew D. Hottinger, 38, all of Fort Wayne, Indiana, are charged in a two count Indictment. All defendants were charged with possession with intent to distribute marijuana, and Hottinger was also charged with managing and controlling a drug involved premises, all occurring on or about April 15, 2014. These charges were filed as a result of an investigation by the Immigration Customs Enforcement/Homeland Security Investigations, Drug Enforcement Administration, Indiana State Police, Allen County Drug Task Force, Allen County Police Department, New Haven Police Department, and the Fort Wayne Police Department. This case has been assigned to and will be prosecuted by Assistant United States Attorney Anthony W. Geller.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.Federal Appeals Court Vacates Probationary Sentence for Officer's Excessive Force; Returns to District Court for ResentencingRead the Press Release
BIRMINGHAM -- The U.S. Court of Appeals for the Eleventh Circuit this week vacated the probationary sentence a federal judge imposed last year on a former Birmingham police officer convicted of using excessive force on a handcuffed arrestee. The appeals court returned the case to U.S. District Court for resentencing, announced U.S. Attorney Joyce White Vance.
The 11th Circuit Court ruled that the district court's five-year probationary sentence for COREY L. HOOPER, 35, was "substantively unreasonable." Federal Sentencing Guidelines recommended a prison sentence of 70 to 87 months, and federal prosecutors recommended more than seven years in prison for Hooper's 2012 trial conviction for deprivation of rights under color of law.
The conviction stemmed from a 2007 incident in which Hooper, then a Birmingham police officer, struck a handcuffed man multiple times in the face while the man was in the back seat of a patrol car.
The U.S. Attorney's Office appealed U.S. District Court Judge Inge P. Johnson's probationary sentence as unreasonable, arguing that it did not satisfy the need for general deterrence of the crime of excessive use of force by police officers.
The Court of Appeals for the Eleventh Circuit held that the district court abused its discretion when it issued Hooper a five-year probationary sentence. The district court "expressly declined to consider the need for Hooper's sentence to adequately deter other police officers from using excessive force," thereby ignoring a legal factor that is one of the key purposes of sentencing, the appeals court wrote. Judge Johnson did not adequately consider the seriousness of Hooper's conviction, "particularly in light of Hooper's abuse of police power and the vulnerability of a restrained arrestee," the court wrote. It also held that Judge Johnson failed to cite "a sufficiently significant justification for granting a 100 %, 70-month downward variance," from the recommended guidelines sentence.Dominican National Pleads Guilty to Selling Counterfeit StampsRead the Press Release
BUFFALO, N.Y.-- U.S. Attorney William J. Hochul, Jr. announced today that Alcides Marcelino, 48, a native of the Domincan Republic currently living in Rochester, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to selling counterfeit postage stamps. The charge carries a maximum penalty of five years in prison, a $250,000 fine or both.
Assistant U.S. Attorney John E. Rogowski, who is handling the case, stated that on May 23, 2011, the defendant sold 10,000 “Lady Liberty” and “U.S. Flags Forever” stamps for $2,500. At the time, the stamps had a total face value of $4,400. On July 19, 2011, Marcelino sold the same quantity of fake stamps for another $2,500.
The plea is the culmination of an investigation on the part of Special Agents of Federal Bureau of Investigation, the United States Postal Inspection Service, Boston Division, under the direction of Acting Inspector in Charge, Shelly A. Binkowski, the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, and the New York State Police, under the direction of Major Thomas Marmion.Sentencing is scheduled for August 29, 2014, at 1:00 p.m. before Judge Arcara.
Deported Brazilian Sentenced to Time-Served for Illegally Re-Entering U.S.Read the Press Release
PITTSBURGH - An alien found in Pittsburgh has been sentenced in federal court to time served on his conviction of illegal re-entry after deportation, United States Attorney David J. Hickton announced today.
United States District Judge Terrence F. McVerry imposed the sentence on Valber Silva-Brito, 26, of Brazil.
According to the information presented to the court, Valber Silva-Brito, an alien, was formally removed from the United States by U.S. Immigration and Customs Enforcement on Oct. 16, 2007, Jan. 10, 2008 and Sept. 16, 2010. Valber Silva-Brito was found to be illegally present in Pittsburgh on June 9, 2013.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended ICE’s Enforcement and Removal Operations for the successful investigation leading to the successful prosecution of Valber Silva-Brito.
Defendant Pleads Guilty to $400,000 Tax Refund FraudRead the Press Release
PORTLAND, Ore. – Kathryn Keneally, Assistant Attorney General, Tax Division, and U.S. Attorney Amanda Marshall for the District of Oregon, announced today that Latisha L. Simmons, formerly of Portland, Oregon, pleaded guilty before the U.S. District Judge Anna J. Brown to three counts involving tax refund fraud. Simmons pleaded guilty to one count of wire fraud, one count of false claims against the government, and one count of aggravated identity theft. She was indicted in December 2013, and was arrested in January 2014 in Phoenix, Arizona, where she currently resides.
According to the plea agreement, Simmons filed more than 50 false federal income tax returns from Portland, Oregon. She filed them during a two-week period in January 2012, requesting a total of more than $400,000 in fraudulent income tax refunds. Simmons obtained names, social security numbers, and dates of birth for other individuals, which she used to file fraudulent income tax returns claiming fictitious wages and inflated withholding amounts to generate fraudulent refunds of up to $8,400 per return. Simmons caused the fraudulent refunds to be direct-deposited onto stored-value debit cards and mailed to her own address or other addresses she controlled. Simmons has agreed to pay full restitution to the IRS.
Simmons faces maximum sentences of 20 years in prison for the wire fraud conviction, five years for the false claims against the government count, and a mandatory two-year consecutive sentence for the aggravated identity theft conviction. Sentencing has been scheduled for August 27, 2014.
This case was investigated by the IRS Criminal Investigation Stolen Identity Refund Fraud Task Force. Trial Attorneys Leslie A. Goemaat and Lori A.Hendrickson of the Justice Department’s Tax Division are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Defendant Michael San Nicolas Santos Sentenced Today for Making Bomb ThreatsRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for Guam and the Northern Mariana Islands, announced that MICHAEL SAN NICOLAS SANTOS, aged 54, was sentenced today in the District Court of Guam, to serve 18 months in federal prison followed by three years of supervised release for transmitting bomb threats in interstate commerce. Defendant was also ordered to pay a $100 special assessment fee and total restitution of $2,389.48 for distribution in part to Pho Saigon Restaurant, the Judiciary of Guam and the Guam Police Department.
Defendant pled guilty on November 14, 2013, to the offense of Maliciously Conveying False Information by Telephone in violation of 18 U.S.C. § 844(e). On the mornings of September 26, 2013, October 10, 2013, and October 29, 2013, the defendant called the Guam Emergency 911 Center and stated to the effect that there was a bomb going to explode in the Dededo Mall. On the last phone call, the defendant threatened and stated, “There is a bomb going down in Dededo Mall right now. It is going to be going off. Get those people out of the building. In Dededo Mall right now.”
On the morning of each of the calls, the defendant purchased a new prepaid cellular phone and/or SIM card in the Mobil gas stations in Ysengsong Road, Dededo, and Route 16. The defendant made the September 26, 2013 and October 10, 2013 bomb threats from a park across the street from the Dededo Mall. On the morning of October 29, 2013, federal law enforcement agents surveilled the defendant when he left his Yigo residence. He was observed buying a prepaid cellular phone in the Mobil gas station in Route 16 in the vicinity of the Guam Revenue & Taxation building, driving around the park directly across the street from the Dededo Mall, and driving up Carnation Road and Villagomez Road where he made the third bomb threat. Special Agents from the Federal Bureau of Investigation (“FBI”) arrested the defendant later that morning when he returned to the Dededo Mall. The defendant told them, among other things, that he called in the bomb threats on those days to avoid attending a small claims court hearing in the Small Claims Division, Superior Court of Guam, Northern Court Satellite which is located in the Dededo Mall.
The Dededo Mall also accommodates one restaurant, several food concession stands and retail businesses.
U.S. Attorney Limtiaco states, “All bomb threats are taken seriously. To ensure the public's safety and security, law enforcement agencies will use their resources to determine the validity of each bomb threat. Offenders will be held accountable and prosecuted.”
The investigation was conducted by the FBI Joint Terrorism Task Force-Pacific (comprised of the FBI, Guam Police Department, U.S. Coast Guard Investigative Service), Guam Police Department, Guam Fire Department, Judiciary Courts of Guam Marshals Office, Guam Homeland Security/Office of Civil Defense, U.S. Navy Explosive Ordnance Disposal Mobile Unit 5, Detachment Marianas and the Department of Defense Joint Region Marianas. The case was handled by Assistant U.S. Attorney Marivic David.
Defendant Antonette Elatico Parr Sentenced in the District Court of GuamRead the Press Release
ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that ANTONETTE ELATICO PARR (“PARR”) was sentenced on Monday, May 12, 2014, by Chief Judge Frances Tydingco-Gatewood, in the District Court of Guam, to 21months incarceration, and three years of supervised release.
Co-defendants David Taimanglo Quichocho, Jr. and Dominica Bato Quichocho both pled guilty in December, 2012 to Conspiracy to Distribute Methamphetamine Hydrochloride in violation of Title 21 U.S.C. Section 841(a)(1). Defendant David Taimanglo Quichocho, Jr. ordered over five grams of methamphetamine hydrochloride from his sister, PARR, a California resident. PARR concealed small amounts of methamphetamine hydrochloride in letters sent via First Class mail to Guam. The letters containing the drug were picked up by David Taimanglo Quichocho, Jr. or his spouse, Dominica Bato Quichocho. Notably, the letters, each containing approximately 1.88 grams of the drug were detected and intercepted by the United States Postal Investigative Service.
U.S. Attorney Limtiaco thanks the United States Postal Investigative Service for their thoroughness and vigilance in detecting drugs which are being mailed to Guam through the United States Postal System.
The investigation was conducted by the United States Postal Investigative Service. The case was handled by Assistant U.S. Attorney Rosetta San Nicolas.Dallas Man Sentenced to More Than 17 Years in Federal Prison and Ordered to Pay Nearly $16 Million in Restitution for Role in Massive Stolen Identity Refund Fraud SchemeRead the Press Release
DALLAS — A Dallas man who was convicted at trial on multiple felony offenses related to his scheme to use stolen identity information to fraudulently obtain millions of dollars in tax refunds, was sentenced this afternoon in federal court in Dallas, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Ogiesoba City Osula, 38, was sentenced by U.S. District Judge Barbara M. G. Lynn to 17 years and six months in federal prison and ordered to pay $15.9 in restitution. Osula was convicted, following a nearly weeklong trial in October 2013, on one count of conspiracy to commit wire fraud, mail fraud and bank fraud; seven counts of presenting fraudulent claims upon the U.S.; two counts of fraud in connection with access devices and aiding and abetting; and six counts of aggravated identity theft and aiding and abetting.
“The investigation and prosecution of individuals who engage in stolen identity refund fraud (SIRF) is a priority in this district,” said U.S. Attorney Saldaña. “We are committed to working with IRS Criminal Investigation and the FBI, as well as other federal, state and local law enforcement partners, to combat all SIRF-related crimes.”
Last month, co-defendants George Ojonugwa, 32, of Garland, Texas, and Eseos Igiebor, 43, of Richardson, Texas, were sentenced. Ojonugwa was sentenced to 174 months and ordered to pay $15,979,187 in restitution. Igiebor was sentenced to 96 months and ordered to pay $9,660,658 in restitution.
Late last year, Ebenezer Legbedion, 42, of Lagos, Nigeria, was sentenced to 40 months and ordered to pay more than $1 million in restitution, and Evelyn Nyaboke Haley, 34, of Dallas, was sentenced to 60 months and ordered to pay approximately $5.7 million in restitution.
Ojonugwa, Igiebor and Legbedion each pleaded guilty to one count of conspiracy to commit wire fraud. Igiebor also pleaded guilty to one count of aggravated identity theft. Haley pleaded guilty to one count of conspiracy to defraud the government with respect to claims.
“The defendants who perpetrated this scheme systematically defrauded the government and the American taxpayer,” said Richard Weber, Chief IRS Criminal Investigation. “The successful take down of this cross-country identity theft ring and the lengthy sentences for the perpetrators sends a clear message that the Internal Revenue Service stands steadfast in the fight against identity theft.”
The defendants conspired to defraud the U.S. by using stolen identity information and false information to create and electronically file false tax returns to claim refunds. The defendants had the refunds credited to stored value cards or bank accounts opened with stolen taxpayer identity information. Even while the defendants fraudulently obtained millions of dollars in tax refunds, they filed additional fraudulent returns, attempting to obtain millions more in tax refunds for their own use and benefit.
“The number of stolen identities and fraudulent tax refund monies in this case are staggering,” said Diego Rodriguez, Special Agent in Charge of FBI Dallas. “We will continue to work with our federal, state and local partners to identify those who turn to computer crime and intrusions in order to profit at the public’s expense, and to hold them responsible for the ruinous impact they impose on the individuals they victimize.”
During Osula’s trial, the government presented evidence that Osula and his coconspirators were sending information to and trading information with, a group running a similar scheme in Cincinnati, Ohio. On Nov. 8, 2011, police in a Cincinnati suburb questioned Osula and Ojonugwa, who were in a parked car after midnight with the leader of the Cincinnati ring. A drug detection dog alerted on the vehicle, and when it was searched, police found more than $300,000 in cash and money orders and numerous debit cards. During that incident, while Osula was in a police car and waiting to be questioned, he ate a debit card.
According to documents filed in this case and statements made in court:
SIRF is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the United States Treasury. SIRF schemes generally share a number of hallmarks:
- SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals.
- SIRF perpetrators complete Individual Income Tax Return Form using the fraudulently-obtained information and falsifying wages earned, taxes withheld and other data. Perpetrators use data to make it appear that the “taxpayers” listed on the fraudulent 1040 forms are entitled to tax refunds – when in fact, the various tax withholdings indicated on the fraudulent 1040s have not been paid by the listed “taxpayers,” and no refunds are due. Perpetrators direct the U.S. Treasury Department to issue the refunds through checks (Tax Refund Treasury Checks) generated by the fraudulent 1040 forms to locations they control or can access, in various ways.
- With Tax Refund Treasury Checks now in hand, SIRF perpetrators generate cash proceeds. Certain SIRF perpetrators sell Tax Refund Treasury Checks at a discount to face value. In turn, the buyers then cash the Tax Refund Treasury Checks, either themselves or using straw account holders, by cashing checks at banks or check cashing businesses, or by depositing checks into bank accounts. When cashing or depositing Tax Refund Treasury Checks, SIRF perpetrators often present false or fraudulent identification documents in the names of the “taxpayers” to whom the checks are payable.
While this investigation was conducted by IRS Criminal Investigation and the FBI, the U.S. Secret Service Office in Cincinnati, Ohio, and the U.S. Attorney’s Office for the Southern District of Ohio, provided substantial assistance.
Assistant U.S. Attorneys Mark Penley, Christopher Stokes and P.J. Meitl prosecuted.
Corpus Christi Doctor Heads to Prison for Fraudulent Health Care Billing SchemeRead the Press Release
CORPUS CHRISTI, Texas - Dr. Roque Joel Ramirez, 48, of Robstown, has been ordered to federal prison following his conviction of mail fraud in connection with his scheme to defraud Medicare and Medicaid through fraudulent billings, announced United States Attorney Kenneth Magidson and Texas Attorney General Greg Abbott. Ramirez pleaded guilty Feb. 18, 2014.
Today, Senior U.S. District Judge Hayden Head, who accepted the guilty plea, handed Ramirez a sentence of 37 months in federal prison. He was further ordered to pay a $10,000 fine and $370,638.28 in restitution to Medicare and Medicaid and will also be required to serve three years of supervised release following completion of the prison term. In handing down the sentence, Judge Head noted how Ramirez had abused his position of trust within the health care community.
Ramirez, a licensed physician in Texas since 1997 and owner of Health Resolutions Inc., was indicted by a federal grand jury on Oct. 9, 2013, for a scheme to defraud Medicare and Medicaid through fraudulent billings. He opted to enter a guilty plea on the day he was set to begin trial to one count of mail fraud for using the United States Postal Service (USPS) for the purpose executing his scheme. His medical office in Corpus Christi is now closed.
Ramirez admitted he knowingly and willfully engaged in a scheme to defraud Medicare and Texas Medicaid and submitted false and fraudulent billings for medical services he did not provide. He also admitted he committed mail fraud by using USPS to receive payment on the fraudulent bills.
Court documents indicated that Ramirez knowingly and willfully engaged in the scheme from May 2008 through December 2011 by submitting fraudulent billings for physician services he did not provide. Thousands of false and fraudulent bills were submitted, according to the charges. Ramirez billed for medical services he claimed he personally provided to patients who had actually died prior to the dates of his claimed services. He also submitted bills claiming he personally provided services to patients at his clinic when he was actually overseas or in another state. Some of the bills also indicated he would have personally worked more than 24 hours in a single day. Court documents also alleged that when he provided medical services to Medicare and Medicaid patients in nursing homes, he would send fraudulent bills claiming he had seen the patients in private residences in order to collect the higher fees paid for house calls.
Ramirez was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI, U.S. Department of Health and Human Services-Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant United States Attorney (AUSA) Robert D. Thorpe Jr. and Special AUSA Rex G. Beasley are prosecuting.
Connecticut Man Sentenced to 30 Months in Federal Prison for Role in $3.2 Million Mortgage Fraud SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that DOMINGOS DIAS, 44, of formerly of Trumbull and currently residing in Easton, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for his involvement in a mortgage fraud scheme that caused more than $3 million in losses to lenders.
According to court documents and statements made in court, DIAS participated in a conspiracy to fraudulently obtain real estate loans from banks and mortgage lenders through the use of straw buyers. As part of the scheme, DIAS recruited the straw buyers and then created false verifications of employment, false verifications of rent and other false documentation that was used to qualify the straw buyers for the fraudulent mortgages. Once the mortgage loans were closed, DIAS distributed some of the proceeds of the scheme to the straw buyers, and kept some of the money for himself.
DIAS sometimes used his wholly-owned limited liability company, Peoples Choice General Contractors, to falsely verify the employment of straw buyers, and also to receive mortgage funds for ”services rendered” when, in fact, no general contracting or other services had been provided to the seller or the buyer of the properties.
In 2006 and 2007, DIAS conspired to defraud lenders in relation to the purchase of three residential real estate properties in Bridgeport and one in Stratford. DIAS also admitted that the conspiracy involved the fraudulent purchase of at least 10 other properties in Connecticut and Indiana, causing a total of $3.2 million in losses to lenders.
Judge Underhill ordered DIAS to pay restitution of $3,208,450 to the victim mortgage lenders.
On November 18, 2010, a federal grand jury returned an indictment charging DIAS and his alleged co-conspirator, Hector Natera, formerly of Bridgeport, with conspiracy, wire fraud and bank fraud offenses. On February 9, 2012, DIAS pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud, and seven counts of wire fraud.
Natera is currently being sought by law enforcement. Citizens with information that may be helpful to the investigation of this matter are urged to call the FBI at 203-333-3512.
As to Natera, 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 is being prosecuted by Assistant U.S. Attorney Ann M. Nevins.
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(203) 821-3722 [email protected]Connecticut Man Pleads Guilty to Distributing CocaineRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Richard
A. Kincaid, III, of Waterbury, Connecticut pleaded guilty today in U.S. District Court in Bangor to distributing cocaine.According to court records, on March 25, 2014, the defendant drove from Connecticut to a residence in Bangor to deliver seven ounces of cocaine and to collect about $3,000 from his customer for a prior drug delivery. He was arrested a week later when he returned to Bangor.
The defendant faces up to 20 years in prison, a $1,000,000 fine, or both. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The case was investigated by the U.S. Drug Enforcement Administration and the Maine
Drug Enforcement Agency.Clinton County, Kentucky Man Charged with Filing False Tax ReturnsRead the Press Release
– Allegedly failed to report earnings and pay income taxes on $386,183.67 during a six year period and overstated business expenses of $581,519.91
BOWLING GREEN, Ky. – A Clinton County, Kentucky man was charged by a federal grand jury in Bowling Green, Kentucky this week, for failing to report approximately $386,183.67 in income and royalty income during a six year period and for overstating business expenses of $581,519.91 announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the six count indictment, Steven L. Burchett did willfully make and subscribe U.S. Individual Tax Returns, for the calendar years 2006 through 2011,which were written under the penalty of perjury and filed with the Internal Revenue Service, (IRS) and included information he did not believe to be true and correct.
Specifically, the indictment states that on October 11, 2008, defendant Burchett filed a U.S. Individual Tax Return for calendar year 2006, with the IRS, in which he failed to report approximately $224,735.76 of additional income on Form 1040 line 22.
On October 8, 2008, defendant Burchett filed a U.S. Individual Tax Return, for the calendar year 2007, with the IRS, in which he failed to report approximately $27,003.91 of additional income on Form 1040, Line 22.
On October 15, 2009, defendant Burchett filed a U.S. Individual Tax Return, for the calendar year 2008, with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $41,394 in business expenses on Schedule C, Line 28, and failed to report royalty income of approximately $18,236 and understated approximately $56,895 in additional income on Form 1040, Line 22.
On April 15, 2010, defendant Burchett filed a U.S. Individual Tax Return, for the calendar year 2009, which was made under the penalty of perjury and was filed with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $90,650 in business expenses on Schedule C, Line 28, and failed to report approximately $38,323 in royalty income and understated approximately $123,225 in additional income on Form 1040, Line 22.
On April 15, 2011, defendant Burchett filed a U.S. Individual Tax Return, for the calendar year 2010, which was made under the penalty of perjury and was filed with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $305,564 in business expenses on Schedule C, Line 28, and failed to report approximately $64,490 in royalty income and understated approximately $360,380 in additional income on Form 1040, Line 22.
On April 15, 2012, defendant Burchett filed a U.S. Individual Tax Return, for the calendar year 2011, which was made under the penalty of perjury and was filed with the IRS, and included information he did not believe to be true and correct. Specifically, the return overstated approximately $72,050 in business expenses on Schedule C, Line 28, and failed to report approximately$74,778 in royalty income and understated approximately $135,611 in additional income on Form 1040, Line 22.
If convicted at trial, Burchett faces up to three years in prison on each of the six charges for a total of eighteen years, a total fine of $1,500,000., and a period of up to six years of supervised release.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the Criminal Investigation division of the Internal Revenue Service.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
City of North Miami Resident Sentenced in Stolen Tax Refund SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tom Weschler, Chief, City of Naples Police Department, announce that Marie Jean Baptiste, 22, of North Miami, was sentenced today to 12 months and one day in prison, to be followed by three years of supervised release. Baptiste was previously convicted by a federal jury of three counts of stealing tax refunds, in violation of Title 18, United States Code, Sections 641 and 2.
According to the indictment and evidence presented at trial, Baptiste received four tax refunds that she knew were stolen, and converted them for her own use and gain. Baptiste participated in a scheme in which fraudulent tax returns were filed directing the tax refunds to be directly deposited into her bank account. After the tax refunds were deposited into her bank account, Baptiste would withdraw the tax proceeds from the bank and various ATMs for her own use and gain.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the City of Naples Police Department. This case was prosecuted by Assistant U.S. Attorney Gera R. Peoples.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Citizen of Israel Charged with Violating U.S. Arms Export LawsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Boston, and Craig Rupert, Special Agent in Charge of the Defense Criminal Investigative Service Northeast Field Office, today announced that ELIYAHU COHEN, also known as ELI COHEN, 63, of Bnei Brak, Israel, has been arrested on federal felony charges of conspiracy to export U.S. defense articles, unlawful export of U.S. defense articles, and conspiracy to commit money laundering. This matter stems from a long-term investigation into a network of military parts purchasers and brokers involved in an alleged conspiracy to export controlled military parts from the U.S. in violation of U.S. federal criminal law.
“The U.S. Attorney’s office in Connecticut is committed to working with our law enforcement partners here and abroad to ensure that sensitive military items built in the United States do not fall into the wrong hands,” said U.S. Attorney Deirdre Daly. “Willful and repeated violations of our export laws will be prosecuted to the full extent of the law.”
“One of Homeland Security Investigations highest priorities is to prevent illicit procurement networks and foreign nations from illegally obtaining U.S. military products and sensitive dual-use technologies,” said Bruce Foucart, special agent in charge of HSI Boston. “The scope and magnitude of this case illustrates just how real that threat is, HSI will continue to aggressively pursue those who violate U.S. export laws, especially when our national security could be jeopardized.”
“The arrest of Eli Cohen represents the culmination of a long-term collaborative effort amongst investigators and prosecutors in bringing an alleged international arms trafficker to justice,” said Craig Rupert, Special Agent in Charge of the DCIS Northeast Field Office. “As long as there are those who seek to illegally acquire sensitive U.S. military technology, DCIS will remain committed to combating their efforts and protecting America’s Warfighters.”
On February 6, 2007, a grand jury in the District of Connecticut returned an indictment charging COHEN, his companies, Q.P.S. Ltd., Wheels, Inc., P. AD. Ltd. and R.S. P. Spare Parts Ltd., and others, with conspiring to violate the Arms Export Control Act (“AECA”), and the International Traffic in Arms Regulations (“ITAR”), violating those laws, and engaging in a conspiracy to commit money laundering, and aiding and abetting. On May 8, 2013, a grand jury returned a nine-count superseding indictment, which includes five counts charged in 2007, two additional AECA violations and two violations of the International Emergency Economic Powers Act (“IEEPA”).
COHEN was arrested in Israel on May 12, 2014, and a redacted superseding indictment was ordered unsealed yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport, Connecticut. COHEN is currently detained in Israel and the U.S. government is seeking his extradition.
According to the indictment, the export from the U.S. of arms, munitions, and related military components, and the technology to build such items, is heavily regulated by federal statutes and corresponding regulations. The indictment alleges that between 2000 and 2004, COHEN, working with brokers in the U.S., arranged for the export of several defense articles, including U.S. origin Hawk Missile System components, from the U.S. The Hawk Missile System is a medium range surface-to-air missile system designed to destroy missiles in flight. It is no longer used by the United States but is used by the Islamic Republic of Iran. At no time did COHEN or any of his co-conspirators apply for or receive a license or other authorization from the U.S. Department of State to export the defense articles.
The indictment further alleges that in 2012 and 2013, COHEN conspired to ship U.S. origin defense articles, specifically F-4C and F-14 aircraft fighter jet replacement parts, from Israel to Iran, via Athens, Greece, without U.S. government authorization.
If convicted of all of the counts of the superseding indictment in which he is charged, COHEN faces a maximum term of imprisonment of 130 years and a fine of up to $7.5 million.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by HSI New Haven, HSI Attaché Tel Aviv, the Defense Criminal Investigative Service and the Department of Commerce Bureau of Industry and Security’s Office of Export Enforcement, with the cooperation and assistance of the Israeli National Police, the Israeli Ministry of Defense, Directorate of Security for the Defense Establishment, the Israel Tax Authority and the International Department of the Israeli State Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Paul H. McConnell, and Trial Attorney David Recker of the Justice Department’s National Security Division, Counterespionage Section.
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(203) 821-3722 [email protected]Child Pornography Prosecutions This WeekRead the Press Release
SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced that this week, in the Eastern District of California, two defendants were sentenced, three defendants pleaded guilty and one defendant was indicted for child pornography offenses. These cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse.
Jason Garrett Duran Sentenced to 20 Years in Prison, 2:12-cr-371 TLN
Jason Garrett Duran, 44, formerly of Bishop, was sentenced on Thursday by United States District Judge Troy L. Nunley to 20 years in prison for possession of child pornography. Duran was convicted by the State of California in June 2002 of a felony involving the aggravated sexual abuse, sexual abuse, or abusive sexual contact involving a minor and received a 10-year sentence for that crime. Approximately three months after being paroled, Duran began acquiring a collection of child pornography and engaging in sexually explicit online chats. FBI agents conducted a parole search of his Sacramento apartment on October 10, 2012, and found approximately 375 images and one video of child pornography on his computer and a removable thumb drive.At sentencing, Judge Nunley stated, “Child pornography is not a victimless crime.” He told Duran that he was “a person who committed one of the most horrendous and atrocious crimes a person could commit against the most vulnerable members of our community – our children.”
This case was the product of an investigation by the District of Columbia Metropolitan Police Department, and the FBI’s Washington DC and Sacramento field offices.
Erik David McKinney Sentenced to 5 Years, 2:13-cr-035 JAM
Erik David McKinney, 28, of Oroville, was sentenced on Tuesday, May 13, 2014, by United States District Judge John A. Mendez to five years in prison for receipt and distribution of child pornography, to be followed by a 20-year term of supervised release. McKinney is also required to register under the federal Sex Offender Registration and Notification Act (SORNA). In October 2012, agents identified a computer at McKinney’s residence that was offering files of child pornography over the Internet and obtained a search warrant. On his computers agents found 10 videos and 617 images of child pornography some showing the sadistic and masochistic abuse of prepubescent boys and girls and the abuse of toddlers. This case was the product of an investigation by the FBI and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).Larry Steven Occhipinti Jr. Indicted
A federal grand jury indicted Larry Steven Occhipinti, 38, of Red Bluff, on Thursday, charging him with receipt of child pornography. The indictment alleges that between May 31, 2012, and April 29, 2014, Occhipinti downloaded child pornography through the Internet. Occhipinti was arrested on May 1, 2014, and made his initial appearance in Sacramento the next day. On May 9, 2014, he was ordered released into the custody of his parent, and placed on electronic monitoring. He was also ordered to not access the Internet, and to have no contact with children. He is scheduled for arraignment on May 16, 2014. This case was the product of an investigation by HSI.If convicted, Occhipinti faces a sentence of five to 20 years in prison, a fine of up to $250,000, and a term of five years to life of supervised release. The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Keith Richard Hill Pleads Guilty, 2:12-cr-420 TLN
Keith Richard Hill, 33, of Sacramento, pleaded guilty on Thursday to possession of child pornography. In October 2011, agents identified a computer at Hill’s residence offering child pornography through the Internet. Among the files being offered were videos of prepubescent girls engaged in sexually explicit conduct. During a search of his residence, agents found two computers with approximately 60 videos of child pornography. Hill is scheduled to be sentenced by Judge Troy L. Nunley on July 31, 2014. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. This case was the product of an investigation by the Sacramento Internet Crimes Against Children Task Force.John Franklin Bye Pleads Guilty, 2:14-cr-034 JAM
John Franklin Bye, 45, of Marysville, pleaded guilty on Tuesday, May 13, 2014, to distribution of child pornography. In the summer of 2013, the Nevada County Sheriff’s Department received a tip from the National Center for Missing and Exploited Children (NCMEC) that Bye had sent an email that contained child pornography. Law enforcement obtained a state search warrant for the contents of Bye’s emails and found a “Saved” folder and a “Sent” folder that contained emails with multiple attachments showing child pornography, including images of prepubescent children and images of sadistic and masochistic conduct. Bye is scheduled to be sentenced by Judge John A. Mendez on August 26, 2014, and faces a sentence of five to 20 years in prison and a fine up to $250,000. This case was the product of an investigation by the Federal Bureau of Investigation.Jason Michael Carlsen Pleads Guilty; 2:14-CR-066 JAM
Jason Michael Carlsen, 41, of Citrus Heights, pleaded guilty on Tuesday, May 13, 2014, to distribution of child pornography. A person in Kentucky received a series of text messages with several pictures of child pornography and reported it to Kentucky State Police who determined that the sender of the messages lived in Citrus Heights. Citrus Height Police Department investigated and a forensic examination of Carlsen’s phone located more than 600 images and videos of child pornography. Also located on the phone were email folders titled “Sent”, “Drafts”, “Inbox” and “Uncategorized” that contained numerous emails with child pornography videos attachments that had been sent to various other email accounts. Carlsen is scheduled to be sentenced by Judge John A. Mendez on August 26, 2014, and faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. This case was the product of an investigation by the Citrus Heights Police Department, Kentucky State Police, and the Sacramento Internet Crimes Against Children Task Force.Any sentences will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Assistant United States Attorney Kyle Reardon is the prosecutor for all of the foregoing cases.
The Sacramento Internet Crimes Against Children (ICAC) Task Force is a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking.
Project Safe Childhood is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section. It marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Central Texas Man Sentenced to Federal Prison for Possessing Child PornographyRead the Press Release
In Waco, 61-year-old Gary Joe Smith of Morgan, TX, was sentenced to six years in federal prison for possession of child pornography announced United States Attorney Robert Pitman and Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala.
During the sentencing hearing held yesterday afternoon, United States District Judge Walter S. Smith, Jr., also ordered that Smith pay a $2,500 fine and be placed under supervised release for a period of five years after completing his prison term. Smith remains on bond pending Bureau of Prisons facility designation.
According to court records, HSI agents who were conducting an investigation into on-line exploitation of minors executed a search warrant at the defendant’s residence on April 23, 2013, and seized his home computer. A subsequent forensics examination of the defendant’s computer revealed the presence of over 600 images depicting child pornography. On March 6, 2014, Smith pleaded guilty to one count of possession of child pornography.
“This sentence sends a clear message that those who exploit children in any way will face serious consequences,” said Special Agent in Charge Janice Ayala, HSI San Antonio. “Preventing and investigating crimes against children is a high priority for HSI. We will continue to dedicate law enforcement resources to identify and bring to justice child predators that traumatize and victimize children.”
This case was investigated by special agents with HSI and prosecuted by Assistant United States Attorney Greg Gloff.Cedar Rapids Man Sentenced to over Seven Years in Prison for Unlawfully Possessing Five Stolen FirearmsRead the Press Release
A man who unlawfully possessed five stolen firearms as a convicted felon was sentenced today to more than seven years in federal prison.
Chase Mead, 31, from Cedar Rapids, Iowa, received the prison term after a March 18, 2014, guilty plea to one count of being a felon in possession of firearms and ammunition.
In a plea agreement, Mead admitted that, on June 14, 2013, he possessed two rifles and three handguns, all of which had previously been reported stolen. Mead also admitted to possessing ammunition for each of the firearms. Mead had previously been convicted of two felony offenses. In 2003, he was convicted of forgery and, in 2008, he was convicted of manufacturing methamphetamine.
Mead was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Mead was sentenced to ninety-four months’ imprisonment. A special assessment of $100 was imposed. Mead must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Mead 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 Anthony Morfitt and investigated by the Linn County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-CR-00019.
Cedar Rapids Man Pleads Guilty to Robbing Bank in ElyRead the Press Release
A man who robbed the Solon State Bank in Ely, Iowa, pled guilty today in federal court in Cedar Rapids.
Robert Melton, 51, from Cedar Rapids, Iowa, was convicted of one count of bank robbery.
At the plea hearing, Melton admitted he entered the Solon State Bank in Ely on January 17, 2014, and gave a note to a teller demanding money and informing the teller not to do anything and nothing would happen. The teller gave Melton some cash and Melton left the bank, walked to his truck, and drove away. A witness to the robbery followed Melton as he drove away from the bank. The witness called 911 and reported Melton’s location. Law enforcement officers then stopped Melton and took him into custody.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Melton remains in custody of the United States Marshal pending sentencing. Melton faces a possible maximum sentence of twenty years’ imprisonment, a $250,000 fine, a $100 special assessment, and five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Federal Bureau of Investigation and the Linn County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov. The case file number is 14-CR-00024.
Cambridge Teacher Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A Cambridge elementary school teacher was indicted today on multiple counts of child pornography.
Josh Wairi, 27, of Somerville, was charged with transportation of child pornography and three counts of production of child pornography. He is currently being held without bail. On April 17, 2014, Wairi was initially charged via criminal complaint.
The criminal complaint alleges, among other things, that Wairi, a fifth grade teacher, used his email account to trade and receive images of child pornography and also uploaded images and videos of children being sexually exploited. The complaint further alleges that Wairi transferred the images and videos of child pornography to other users.
If convicted, Wairi faces a mandatory minimum sentence of 15 years and a maximum of 30 years in prison on each count of production of child pornography and a mandatory minimum of five years and maximum of 20 years in prison on the count of transportation of pornography, as well as a mandatory minimum of five years and a maximum of a lifetime of supervised release and a $250,000 fine.United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and Acting Somerville Chief of Police Charles Semino, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz's Major Crimes Unit.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Brooklyn Man Sentenced to 3 Years in Prison for Identity Theft SchemeRead the Press Release
PITTSBURGH - A resident of Brooklyn, New York, has been sentenced in federal court to 36 months incarceration, which included a mandatory sentence of 24 months incarceration, on his trial convictions for conspiracy and aggravated identity theft, United States Attorney David J. Hickton announced today.
Senior United States District Judge Maurice B. Cohill, Jr., imposed the sentence on Brent Kevin Hercules Antoine, of Brooklyn, New York.
According to information presented to the court, Antoine, the final member of a credit card fraud conspiracy to be sentenced, obtained and used counterfeit credit cards which he used to purchase merchandise and gift cards at Giant Eagle and Walmart stores in Western Pennsylvania in March 2010. He and his co-defendant, Jean Seraphin, also of Brooklyn, were convicted at trial in September 2012.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the United States Secret Service, Homeland Security Investigations, and the Scott Township Police Department for the investigation leading to the successful prosecution of Antoine.
Boise Man Pleads Guilty to Escape from Custody and Violating Sex Offender Registration ActRead the Press Release
Fourth Conviction for Failing to Register
BOISE - Perry Lee Lewis, 36, of Boise, pleaded guilty today to escaping from custody and violating the Sex Offender Registration and Notification Act, U.S. Attorney Wendy J. Olson announced. Lewis was indicted by a federal grand Jury in Boise on March 11, 2014.
According to the plea agreement, on May 13, 2013, Lewis walked away from the Port of Hope residential reentry center in Coeur d’Alene, where he was finishing his sentence for a previous violation of the Sex Offender Registration and Notification Act. Port of Hope is a halfway house that contracts with the Federal Bureau of Prisons to help reintroduce prisoners back into the community during the last few months of their sentence. Lewis was apprehended in Worley, Idaho, on May 19, 2013, by Coeur d’Alene Tribal Police, and returned to a Federal Bureau of Prisons facility in Seattle, where he finished his sentence. Lewis was released on July 10, 2013, and returned to Boise, but once again, he failed to register as a sex offender. Lewis was previously convicted of Rape in the Second Degree in 2006 in the state of Washington and has two previous convictions in Washington State for failing to register as a sex offender.
The charge of escaping from custody is punishable by up to 5 years in prison, a maximum fine of $250,000.00, and up to 3 years of supervised release. The charge of violating the Sex Offender Registration and Notification Act is punishable by up to 10 years in prison, a maximum fine of $250,000, and from 5 years up to lifetime-supervised release.
Sentencing is set for July 29, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Boise.
The United States Marshal’s Service and the Coeur d’Alene Tribal Police investigated the case. Both agencies are members of the Idaho Internet Crimes Against Children (ICAC) Task Force, a statewide coalition of local, state and federal law enforcement and prosecution agencies, focused on apprehending and prosecuting individuals who use the Internet to criminally exploit children. For more information about the Idaho ICAC Task Force and a list of all the participating agencies, visit www.icacidaho.org.
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.”
Ambulance Company Owner and Son Sentenced for Conspiracy to Commit Health Care & Wire FraudRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today, United States District Judge Terrence W. Boyle sentenced PHYLLIS STALLINGS HARRELL and PAUL LYNN TRUEBLOOD, both of Belvidere, North Carolina. HARRELL was sentenced to 72 months imprisonment followed by 3 years of supervised release and was also ordered to pay restitution in the amount of $1,598,356.91. TRUEBLOOD was sentenced to 53 months imprisonment followed by 3 years of supervised release and ordered to pay restitution in the amount of $1,516,654.21.
Both HARRELL and TRUEBLOOD pled guilty on November 14, 2013 to Count 1 of the Second Superseding Indictment which charged them with Conspiracy to Commit Health Care Fraud and Wire Fraud, in violation of Title 18, United States Code, Section 1349.
“This health care provider and her son abused the trust of taxpayers by billing the government for more than $1.5 million ambulance services that they didn’t perform. This case underscores for health care providers that if you commit Medicare and Medicaid fraud, you should expect a lengthy stay in federal prison,” stated U.S. Attorney Walker.
Count 1 of the Second Superseding Indictment alleges that between January of 2004 and December of 2009, HARRELL and TRUEBLOOD conspired to defraud Medicare, Medicaid, and private insurers in connection with various billings for alleged non-emergency ambulance transportation services in the area of Elizabeth City. The Indictment alleges that HARRELL, the mother of TRUEBLOOD, billed Medicare and Medicaid through Harrell Medical Transport, a company owned by HARRELL and operated by HARRELL and TRUEBLOOD. The indictment further alleges that TRUEBLOOD operated a wheelchair van transportation company that transported Medicare and Medicaid beneficiaries to routine medical appointments on a weekly basis. The Indictment alleges that although patients were transported in wheelchair vans, HARRELL and TRUEBLOOD billed Medicare and Medicaid through Harrell Medical Transport as though the trips had occurred in an ambulance. Medicare and Medicaid do not pay wheelchair van providers for wheelchair van transportation. The Indictment alleges that HARRELL and TRUEBLOOD fabricated and caused to be fabricated information in medical records to make it appear as though the patients had traveled by ambulance. The Indictment also alleges that HARRELL and TRUEBLOOD caused employees of Harrell Medical Transport to omit material information in medical records concerning the ability of patients to walk and ride in wheelchairs, which affects whether Medicare and Medicaid will pay for ambulance transportation.
"Ambulance transportation companies that make fraudulent claims by providing unnecessary services or misrepresenting to Medicare and Medicaid about the services they provide will instead have to answer to the government for their misdeeds," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region".
During the investigation of the case, the United States Attorney’s Office, with the assistance of the United States Department of Health and Human Services, the North Carolina Attorney General’s Office – Medicaid Investigations Division, and the Federal Bureau of Investigation, seized several hundred thousand dollars in assets held by HARRELL and TRUEBLOOD. Seized assets included various ambulances and other vehicles, as well as the contents of various bank and investment accounts. During court today, United States District Judge Terrence W. Boyle ordered forfeiture with respect to these assets and other assets contained in the superseding indictment.
The investigation of this case was conducted by the United States Department of Health and Human Services Office of the Inspector General, the North Carolina Department of Justice's Medicaid Investigations Division, the North Carolina Department of Health and Human Services Division of Medical Assistance, and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore and Special Assistant United States Attorney John Parris prosecuted the case for the Economic Crimes Division of the United States Attorney's Office.
14 May 2014
Wood County Man Sentenced for False Statement on Mortgage AppRead the Press Release
Department of Justice
Office of Public AffairsTYLER, Texas – A 40-year-old Quitman, Texas man has been sentenced to federal prison for federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today
Daniel Huffman, also known as Steven Ball, pleaded guilty on Feb. 10, 2014 to making a false statement on a loan application and was sentenced to 23 months in federal prison today by U.S. District Judge Michael H. Schneider. Huffman was also ordered to pay restitution in the amount of $196,028.52.
According to information presented in court, on Jan. 23, 2012, Huffman applied for a mortgage loan under the false name of Steven Ball. Huffman was indicted by a federal grand jury on Oct. 23, 2013 and charged with federal violations.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
This case was investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
West Hartford Man Charged with Using the Internet to Distribute Obscene Materials to A MinorRead the Press Release
BOSTON – A West Hartford man was charged in U.S. District Court in Worcester yesterday with sending obscene images to a 14-year-old boy over the Internet.
Herbert Lawrence Jenkins, 45, was indicted for transferring obscene materials to a minor. An affidavit in support of Jenkins’ arrest, previously unsealed, alleges that in July 2013, after chatting with the victim for several months, Jenkins sent four photographs of his genitals to a 14-year-old boy in Bolton, Mass. while graphically describing sexual acts that he wished to perform with the boy. The affidavit further alleges that approximately one week before this occurred Jenkins had traveled from his home in West Hartford to the boy’s residence in Bolton.
Jenkins’ communications were discovered when a sibling of the victim discovered the chats on the victim’s iPhone and brought them to the attention of the victim’s parents.
If convicted, Jenkins faces a statutory maximum term of 10 years in prison and three years of supervised release.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement. The case is being prosecuted by Mark J. Grady of Ortiz’s Worcester Branch Office.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Waveland Man Sentenced for Making and Passing Counterfeit MoneyRead the Press Release
Gulfport, Miss. – Alton Emerson Morgan, 39, of Waveland, Mississippi, was sentenced in U.S. District Court today to 33 months in federal prison followed by three years of supervised release for his involvement in making and passing counterfeit money, announced U.S. Attorney Gregory K. Davis and Special Agent in Charge Craig Caldwell with the U.S. Secret Service. Morgan was also ordered to pay a $2,500 fine and $760 in restitution.
Morgan previously pled guilty to making counterfeit U.S. currency in Hancock County in December, 2013. The currency consisted of counterfeit Federal Reserve Notes in $20 and $100 denominations. Morgan also pled guilty to passing counterfeit Federal Reserve Notes in denominations of $20 and $50 in Rankin County, Mississippi, in December, 2012.
This case was investigated by the United States Secret Service, and was prosecuted by Assistant U.S. Attorney Ruth Morgan.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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