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Thursday 20 March 2014
Springfield Man Indicted on Charges of Child PornographyRead the Press Release
BOSTON – A Springfield man was charged today in U.S. District Court in Springfield with child pornography charges.
Daniel P. Lorenz, 44, was indicted with two counts of distributing child pornography, three counts of receiving child pornography and possessing child pornography files.
If convicted, Lorenz faces a statutory mandatory minimum of five years and a maximum of 20 years in prison, a minimum mandatory of five years and a maximum lifetime of supervised release, and a maximum fine of $250,000 on the charges of distribution and receipt of child pornography. If convicted on the charge of possession of child pornography, Lorenz faces a statutory maximum of 20 years in prison, a minimum mandatory of five years and a maximum lifetime of supervised release, and a maximum fine of $250,000.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
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 today. The case was investigated by the FBI with assistance from the Springfield Police Department. It is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz's Springfield Branch Office.The details contained in the indictment are allegations. The defendant is presumed to be 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 Criminal Division=s CEOS, 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/.
Sonar Club Owner Who Helped Supervise A Baltimore Drug Organization Sentenced to 10 Years in PrisonRead the Press Release
Tally Sheets Showed Sales of $14.5 Million of Marijuana;
Documents Seized Regarding Purchase of a Plane by Co-Conspirators for $450,000Greenbelt, Maryland - U.S. District Judge Roger W. Titus sentenced Daniel Gerard McIntosh, age 38, of Sparks, Maryland today to 10 years in prison followed by eight years of supervised release for conspiring to distribute between 100 and 1,000 kilograms of marijuana, conspiring to engage in money laundering and interstate travel to further drug trafficking activities.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief J. Thomas Manger of the Montgomery County Police Department.According to evidence presented at his seven week trial, McIntosh was part of an extensive drug trafficking operation which was discovered by the DEA when they executed a search warrant at a residence in the 3500 block of Hickory Avenue in Baltimore. The residence was a center of operation for the group. Agents seized more than 80 pounds of marijuana, $30,000 in cash, 30 cell phones, documents regarding a plane purchased for $450,000 by other co-conspirators, tally sheets showing over $14.5 million in marijuana sales, four money counters and false identifications.
Trial testimony established that from at least 2006, McIntosh received large shipments of marijuana and distributed them to local dealers in the Baltimore metropolitan area.
According to trial testimony, in June 2008 McIntosh recruited Philip Parker to pick up marijuana in California and transport the marijuana to Maryland in Parker’s tractor trailer. McIntosh directed Parker to make multiple trips to California. One witness estimated that between September and December 2008, Parker made two trips a month, with loads ranging from 300-600 pounds of marijuana. On one occasion, McIntosh asked a co-conspirator to deliver
$1 million to Parker to transport to California to pay for the marijuana.From 2006 to early 2008, McIntosh used another individual to deliver hundreds of pounds of marijuana to his customers and to collect their payments.
McIntosh also furthered the drug organization’s business through money laundering. According to trial testimony, McIntosh was the manager, and as of June 2007, the majority owner of the Sonar Club in Baltimore. During the previous year, the business had lost $400,000. Once McIntosh took over the business, the leader of the drug organization became a silent partner who funded the business, which continued to lose thousands of dollars each year. McIntosh also provided employment verification for a co-conspirator who was on parole in 2008.
A total of 12 defendants have been convicted in this case, and sentenced to up to 121 months in prison.
Charges are still pending against the alleged leaders of the organization, David D’Amico, age 49, of Baltimore, Matthew Nicka, age 43, of Baltimore and his wife, Gretchen Peterson, age 34, of Kennett Square, Pennsylvania, all of whom were fugitives since the indictment was returned in December 2010. Nicka and Peterson were arrested in Canada in early August 2013, and D’Amico is pending extradition from Colombia, South America.
United States Attorney Rod J. Rosenstein praised the DEA, IRS-CI and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Deborah A. Johnston and Mara Zusman Greenberg, who prosecuted this Organized Crime Drug Enforcement Task Force case.Sibling Sentenced to 6 Months in Jail for Theft of Welfare BenefitsRead the Press Release
PORTLAND, Ore. – A Portland man was sentenced to 6 months in jail for stealing more than $8,000 in benefits intended for his disabled sister. Jason I. Boutros, 49, appeared in federal court for sentencing yesterday after previously pleading guilty to Social Security fraud in December.
According to court records and Boutros’ admissions in court, Boutros became his sister’s Representative Payee in February 2009, which enabled him to receive his sister’s Supplemental Security Income (SSI), a needs-based benefit administered by the Social Security Administration (SSA). As the Representative Payee, Boutros was required to report to SSA if his sister left the United States for more than 30 days. While his sister and other family members were outside the United States for months at a time, Boutros failed to report to SSA as he repeatedly withdrew her benefits. In addition to his sister’s SSI, Boutros withdrew the SSI benefits being paid to his parents, Zakia and Iskander Boutros, who have also been indicted and are currently fugitives living outside the United States.
Telling Boutros that he had a “moral obligation” to repay the funds, the Honorable Michael H. Simon ordered Boutros to pay more than $220,000 in restitution to SSA and the Oregon Department of Human Services for the SSI and Medicaid benefits his family received. He further ordered that $1,900 in currency found in defendant’s residence be applied towards the restitution. Judge Simon found Boutros’ guideline range to be 0-6 months, stating that despite the government’s “well-marshalled evidence of falsehoods,” the government had not proven that Boutros deserved a higher guideline range for being an organizer, manager, or supervisor of his family’s fraud scheme. He further stated that he believed a 12-month prison term was justified, but that he did not believe the record supported an upward departure to a higher guideline range.
Boutros was ordered to begin his jail sentence on May 19, 2014. Boutros’ sister Killda Boutros is scheduled for sentencing April 17, 2014, at 2:00 p.m.
This case was investigated by agents for the Medicaid Fraud Unit, the Department of Health and Human Services, and the Social Security Administration, Office of Inspector General. The case is being prosecuted by Special Assistant United States Attorney Helen L. Cooper as part of a partnership venture between the U.S. Attorney’s Office in Portland, Oregon, and the Seattle Region of the Social Security Administration, Office of the General Counsel.
Sentencing for March 18 - 20, 2014Read the Press Release
Daniel Lee Hutchinson, 54, of Douglas, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on March 20, 2014, for being a felon in possession of a firearm. Hutchinson was arrested in Douglas, Wyoming. He received 18 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Gillette Police Department, the U.S. Probation Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives
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Dallas Todd Jacobs, 19, of Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on March 19, 2014, for conspiracy to possess stolen firearms. Jacobs was arrested in Casper, Wyoming. He received 30 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $1,710.00. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Christopher Rose, 32, of Cheyenne, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 19, 2014, for conspiracy to possess with intent to distribute, and to distributing 50 grams or less of a mixture or substance containing a detectable amount of methamphetamine. Rose was arrested in Cheyenne, Wyoming. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Joshua Anderson, 19, of Casper, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 19, 2014, for possession of child pornography. Anderson was arrested in Casper, Wyoming. He received 120 months imprisonment, to be followed by a life-term of supervised release, and was ordered to pay a $900.00 fine and a $100.00 special
assessment. The case was investigated by the Casper Police Department and the Federal Bureau of Investigation.Cody W. O’Bryan, 42, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 19, 2014, for conspiracy to possess with intent to distribute between 200-350 grams of methamphetamine. O’Bryan was arrested in Laramie, Wyoming. He received 63 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Albany County Sheriff’s Office, the Laramie Police Department and the Wyoming Division of Criminal Investigation.
Joseph Allen Jackson, 31, of Laramie, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 19, 2014, for conspiracy to possess with intent to distribute between 200-350 grams of methamphetamine. Jackson was arrested in Laramie, Wyoming. He received 60 months imprisonment, to be followed by four years of supervised release, and was ordered to pay a $400.00 fine and a $100.00 special assessment. This case was investigated by the Albany County Sheriff’s Office, the Laramie Police Department and the Wyoming Division of Criminal Investigation.
Andrew Montoya, 29, of Rawlins, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 18, 2014, for conspiracy to possess with intent to distribute, and to distributing between 50-200 grams of a mixture or substance containing a detectable amount of methamphetamine. Montoya was arrested in Albany County, Wyoming. He received 18 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Richmond Man Sentenced to 115 Months for Defrauding InvestorsRead the Press Release
RICHMOND, Va. –Stephen Maurice Burks, 65, of Richmond, Va., was sentenced today to 115 months in prison, followed by three years of supervised release, for mail fraud. He also was ordered to pay $1,338,971.52 in restitution to his victims as well as forfeiture.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; and Gary Barksdale, Inspector in Charge of the Washington Division of the United States Postal Inspection Service, made the announcement after sentencing by Senior United States District Judge Robert E. Payne.
Burks pled guilty on November 20, 2013. According to court documents, Burks was the Chief Executive Officer of Chelsea Financial Group, LLC (CFG), which operated from locations in Maryland and Richmond, Virginia. Burks admitted that from at least as early as January 2008 through January 2013, he offered and sold, both individually and through CFG, investments in several different investment schemes both individually and through CFG. These schemes included, but were not limited to: Forex (foreign currency exchange) trading; stock market investments; oil investments; payday lending franchises; and group homes. Burks admitted that he made material misrepresentations and omissions to investors about his background, including false claims that he was an investment professional, registered investment advisor, and commodities trading advisory. Burks also failed to disclose to investors that he was a convicted felon. Throughout all of the various schemes, Burks obtained at least $1.2 million in investor funds and failed to disclose that he retained at least 25% of funds for personal and/or non-investment-related use.
This case was investigated by the United States Postal Inspection Service, Federal Bureau of Investigation, and Internal Revenue Service – Criminal Investigative Division, with significant assistance from the Commodity Futures Trading Commission, the U.S. Department of State, Diplomatic Security Service, and the Virginia State Corporation Commission. Assistant United States Attorney Jessica D. Aber prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Pennsylvania Man Charged with Running A Prostitution BusinessRead the Press Release
NEWARK, N.J. – An Allentown, Pa., man previously charged with sex trafficking of a minor was indicted today on additional charges of conspiracy to use an interstate facility in aid of prostitution business, transportation of a minor to engage in prostitution, coercion and enticement to engage in prostitution, and obstruction, U.S. Attorney Paul J. Fishman announced.
The 10-count superseding indictment returned by a federal grand jury against Francisco Torrellas, a/k/a “Francisco Fordham Jr.,” “Dream,” “Daddy,” and “Pretty,” includes one count of conspiracy in connection with the defendant’s operation of a prostitution business; five counts of violating the Travel Act, i.e., using an interstate facility to carry on his prostitution business; one count of transporting a minor to engage in prostitution; one count of coercion and enticement to engage in prostitution; and one count of obstruction of justice. The original count of sex trafficking of a minor on which the defendant was indicted on June 27, 2012, remains in place.
According to the superseding indictment and other documents filed in court:
From November 2010 to February 2013, Torrellas allegedly conspired with others to operate a prostitution business in New Jersey, Pennsylvania and elsewhere. Torrellas managed the business, traveled, and caused prostitute employees, including a minor, to travel interstate for the purpose of engaging in sex acts in exchange for money.
Torrellas used the Internet to post advertisements for sexual services on the website Backpage.com. Torrellas also developed rules for the prostitutes, booked hotel rooms, and, while incarcerated, used the phone to manage, promote, and carry on his prostitution business, specifically causing his conspirators and others to direct the proceeds of the business to his commissary account at the Essex County Correctional Facility. Torrellas also attempted to influence, delay or prevent the testimony of another person or persons in connection with the case against him.
The conspiracy count carries a maximum potential penalty of five years in prison. The Travel Act counts each carry a maximum potential penalty of five years in prison. The counts relating to trafficking and transportation of a minor carry a mandatory minimum penalty of ten years in prison and a maximum penalty of life imprisonment. The count relating to coercion and enticement to engage in prostitution carries a maximum potential penalty of 20 years in prison and the count charging obstruction of justice carries the maximum term that could have been imposed for the offenses charged. The defendant also faces a fine of $250,000 or twice the amount of the gain or loss from the offense for each count of conviction.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford; and the Secaucus, Jersey City, and the Allentown, Pa., police departments with the investigation leading to today’s superseding indictment.
The government is represented by Assistant U.S. Attorneys Danielle Corcione and Jenny Kramer of the U.S. Attorney’s Office Criminal Division in Newark.The charges and allegations contained in the superseding indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
14-097Defense counsel: Michael N. Pedicini Esq., Chatham, N.J.
Torrellas, Francisco SIndictment
Pair Charged in Federal Indictment with Armed Robbery of Smith’s Store in PriceRead the Press Release
SALT LAKE CITY - A grand jury returned an indictment Wednesday afternoon charging Dominic Matthew Martinez, age 28, of Salt Lake City, and Jennifer Meradee Tryon, age 43, of Price, with a Nov. 26, 2013, armed robbery of Smith’s Food and Drug located at 1075 East Main Street in Price.
The indictment also alleges they used a firearm during a crime of violence. Martinez is charged in the final count of the indictment with possession of a firearm and ammunition following a felony conviction.
Martinez and Tryon are in state custody. A federal arrest warrant has been issued in the case.
The potential maximum penalty for robbery under the federal Hobbs Act is 20 years in prison. Brandishing a firearm during a crime of violence carries a potential life sentence with a seven-year mandatory minimum sentence. Possession of a firearm by a restricted person has a potential 10-year sentence.
The robbery occurred about 11 a.m. on Nov. 26. Surveillance footage of the robbery was obtained from the store along with other evidence. Martinez and Tryon were identified as suspects in the case after an investigation by the Price Police Department, the Utah Department of Public Safety, the ATF and the U.S. Marshals Service.
Owner of Mortgage Modification Company Sentenced in Manhattan Federal Court to Nine Years in Prison for Defrauding Hundreds of Distressed HomeownersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ISAAK KHAFIZOV, a former owner of American Home Recovery (“AHR”), a mortgage loan modification business, was sentenced yesterday in Manhattan federal court to nine years in prison in connection with a scheme to defraud distressed homeowners and lenders. KHAFIZOV was convicted in May 2012 of one count of conspiracy to commit mail and wire fraud, one count of mail fraud, and two counts of wire fraud, after a ten-day jury trial presided over by U.S. District Judge George B. Daniels, who also imposed the sentence.
Manhattan U.S. Attorney Preet Bharara said: “Isaak Khafizov victimized desperate homeowners who were struggling to make their mortgage payments. He preyed on their fears of losing their homes by lying about miracle cures for their financial problems. Khafizov pretended it was all made possible by government programs that did not exist, by special, powerful relationships with banks that he did not have, and by expertise and experience that he never possessed.”
According to the Superseding Indictment filed in Manhattan federal court, other court documents, and statements made during court proceedings:
In the spring of 2008, ISAAK KHAFIZOV, Jaime Cassuto, and David Cassuto founded American Home Recovery (“AHR”), a mortgage modification business that operated in Manhattan. From the spring of 2008 through the summer of 2009, KHAFIZOV used AHR to commit a systematic fraud that preyed on distressed homeowners. KHAFIZOV and AHR’s salespeople fraudulently induced distressed homeowners all over the United States to pay AHR thousands of dollars in up-front fees, by falsely promising the homeowners that: (1) AHR could get them better interest rates and lower monthly fees, all within a short timeframe; (2) AHR would return the up-front fees if it did not succeed in getting the homeowners the mortgage modifications they desired; (3) the homeowners had been “pre-approved” for mortgage modifications by their lenders; (4) AHR was affiliated with government agencies and programs established by the Economic Stimulus Act of 2008; (5) AHR possessed special expertise in mortgage modifications, and (6) AHR had special relationships with lenders. After receiving up-front fees from the distressed homeowners, KHAFIZOV and AHR did little or no work to try to renegotiate the homeowners’ mortgages. And on those rare occasions when KHAFIZOV succeeded in getting a homeowner a mortgage modification, he typically did so by coaching the homeowner to lie about his or her income and assets on forms submitted to the mortgage lender.
All told, KHAFIZOV and AHR defrauded financially struggling customers across the country out of over half a million dollars in fees. Furthermore, because KHAFIZOV and AHR did not do the work they had promised, and because KHAFIZOV specifically directed the distressed homeowners to stop paying their mortgages and to pay AHR its fees instead, many of AHR’s customers wound up in foreclosure as a result of the scheme.
In addition to his prison term, KHAFIZOV, 27, of Queens, New York, was sentenced to three years of supervised release.
In sentencing KHAFIZOV, Judge Daniels remarked that victims who feared “being thrown out of their homes” were “desperately seeking help” from Khafizov because he “promised to solve what, for most of these people, was the most serious problem that they had ever encountered in their lives.” But Khafizov “took advantage of every one” of them, and “… showed a callous disregard for the consequences of his criminal conduct on the victims he swindled.”
Jaime Cassuto and David Cassuto each pled guilty to multiple counts of fraud in April 2012. They await sentencing.
Mr. Bharara praised the Federal Bureau of Investigation and the Special Inspector General of the Troubled Asset Relief Program for their work on this case.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, please visit www.StopFraud.gov.
This case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Niketh Velamoor and Nicole Friedlander are in charge of this prosecution.
Oakland Crew Charged in RICO Indictment Involving String of Armed Robberies, Home Invasions, and Credit Card ConspiracyRead the Press Release
OAKLAND – The Grand Jury returned a 21-count Superseding Indictment on Tuesday, March 18, 2014, against seven people for their participation in a case involving a spree of armed robberies of commercial businesses in and around the Bay Area and the subsequent attempted cover-up of those robberies, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez announced.
According to the Indictment, The Landry Crew is an enterprise based in Oakland, Calif. It is affiliated with the larger “Money Team” gang that also operates in and around Oakland, as well as with other groups. The Landry Crew’s members operate in the greater bay area including Richmond, Antioch, Vallejo, Fairfield, the North Bay, the East Bay, the Peninsula, and Sacramento.
Beginning at the latest in 2012, The Landry Crew allegedly engaged in numerous armed robberies of Rite Aid, Safe Way, and Walmart stores, during which they brandished firearms and stole cash, checks, and merchandise while the store was full of customers. They also engaged in armed home invasion-style robberies, credit card fraud, identity theft, as well as obstruction of justice. Much of the stolen merchandise was sold to third parties or “fences.”
The Indictment further alleges that the Landry Crew broadcast and boasted about their criminal activities on Facebook, Twitter, Instagram, and YouTube. Members of the crew took pictures of themselves in the aftermath of their crimes, literally rolling around in large amounts of cash and stolen items. They also documented themselves on spending sprees with the proceeds from their robberies. The group is notable for its use of female accomplices, who transported members of the group to the scene of crimes, held and concealed evidence, stole credit cards and identities, and rented or stole vehicles in which to commit crimes.
The Indictment alleges that following his arrest, the group’s ringleader, Melvin Landry, Jr. offered cash and goods to FBI agents, if they would allow him to escape.
Defendant
Charges
Melvin Landry Jr., a/k/a “New Hefner,”
22, of OaklandRacketeering, Racketeering Conspiracy, Conspiracy to Commit Robbery Affecting Interstate Commerce, Robbery Affecting Interstate Commerce (Five Counts), Use/Possession of Firearm During and in Relation to Crime of Violence (Five Counts), Money Laundering, Attempting to Bribe a Federal Official, and Obstruction of Justice.
Dominique Marquis Martin, a/k/a “Domo,”
23, of OaklandRacketeering, Racketeering Conspiracy, Conspiracy to Commit Robbery Affecting Interstate Commerce, Robbery Affecting Interstate Commerce (Four Counts), Use/Possession of Firearm During and in Relation to Crime of Violence (Four Counts), and Money Laundering.
Rudolpho Antoine James, a/k/a “Youngnrichdolpho,”
20, of VallejoRacketeering, Racketeering Conspiracy, Conspiracy to Commit Robbery Affecting Interstate Commerce, Robbery Affecting Interstate Commerce (Two Counts), Use/Possession of Firearm During and in Relation to Crime of Violence (Two Counts), Access Device Fraud (Two Counts), and Access Device Making Equipment.
Eric Carlisle, a/k/a “Pimpinassero,”
24, of BerkeleyRacketeering, Racketeering Conspiracy, Conspiracy to Commit Robbery Affecting Interstate Commerce, Robbery Affecting Interstate Commerce (One Count), and Use/Possession of Firearm During and in Relation to Crime of Violence (One Counts).
Veante Williams, a/k/a “V,” 22, of Oakland
Obstruction of Justice.
Desier Williams, 20, of Oakland
Access Device Fraud.
Reina Rodriguez, 23, of Vallejo
Access Device Fraud and Possession of Accessing Device Making Equipment.
The maximum statutory penalty for racketeering and racketeering conspiracy, in violation of 18 U.S.C. Section 1962(c) and 1962(d), are life imprisonment, maximum fine of the greatest of either $250,000 or twice the gross pecuniary gain to the defendant or twice the gross pecuniary gain loss inflicted on another. The maximum statutory penalties for Hobbs Act robbery and conspiracy to commit Hobbs Act robbery, in violation of 18 U.S.C. Section 1951(a), and for obstruction of justice, in violation of 18 U.S.C. Section 1512(c)(1), is 20 years in prison and a fine of $250,000. The maximum statutory penalty for use/possession of a firearm in furtherance of the Hobbs Act robbery, a crime of violence, in violation of 18 U.S.C. Section 924(c), is life imprisonment, a $250,000 fine, but carries a mandatory minimum consecutive prison term of 7 years for the first Section 924(c) conviction if the firearm was brandished, and a 25-year mandatory minimum consecutive term in prison for each second or successive 924(c) conviction. The maximum statutory penalty for money laundering, in violation of 18 U.S.C. Section 1956(a)(1)(b)(i), is 20 years imprisonment, a $500,000 fine, or twice the value of the property involved in the transactions. The maximum statutory penalty for attempting to bribe a federal official, in violation of 18 U.S.C. Section 201(b), is 15 years imprisonment, and a $250,000 fine. The maximum statutory penalty for Access Device Fraud, in violation of 18 U.S.C. section 1029(a)(1) & (2), is 10 years imprisonment, and a $250,000 fine or twice the gross pecuniary gain or loss from the offense. The maximum statutory penalty for Access Device Making Equipment, in violation of 18 U.S.C. section 1029(a)(4) & (2) is 15 years imprisonment, 3 years of supervised release, maximum fine of $250,000 or twice the gross pecuniary gain or loss from the offense. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Please note, indictments and complaints contain only allegations and, as with all defendants, the defendants named herein must be presumed innocent unless and until proven guilty.
Kathryn Haun and Kimberly Hopkins are the Assistant United States Attorneys who are prosecuting the case with the assistance of Kevin Costello and Daniel Charlier-Smith, and with Assistant United States Attorney Olusere Olowoyeye of the Eastern District of California. The prosecution is the result of an investigation by the FBI, IRS Criminal Investigation, the California Highway Patrol, the Fremont Police Department, the Alameda County Sheriff’s Department, the Alameda County DA’s Office, the San Leandro Police Department, the San Mateo Police Department, the San Mateo District Attorney’s Office, the Oakland Police Department, the Pinole Police Department, the San Rafael Police Department, the Antioch Police Department, the Richmond Police Department, the Vallejo Police Department, and the Sacramento Police Department.
(The Landry Crew second superseding indictment )
Oakdale Youth Pastor, Registered Sex Offender from Escalon, and Bishop Man Charged in Separate Child Exploitation CasesRead the Press Release
FRESNO, Calif. — A grand jury in Fresno returned three separate indictments today alleging offenses involving the sexual exploitation of minors, United States Attorney Benjamin B. Wagner announced.
In the first indictment, Tyler Bliss, 26, of Oakdale, was charged with one count of receiving and distributing child pornography from October 2013 through February 2014. According to a previously filed criminal complaint, Google reported to the National Center for Missing & Exploited Children (NCMEC) that on December 3, 2013, an image of suspected child pornography had been uploaded to a Google account. NCMEC referred the matter to law enforcement, and a detective with the Ceres Police Department discovered that the same Google account had been connected with the transmission of hundreds of other images of suspected child pornography. Additional investigation revealed that the account had been accessed from a residence in Oakdale as well as from a church in Oakdale. Computers and a cellphone were obtained through search warrants for both locations, and investigators found images related to the sexual exploitation of minors on these items. Bliss had been serving as Supervisor of Student Ministries at the church.
Bliss has been in custody since his arrest by FBI agents Wednesday. He is scheduled for arraignment today at 1:30 p.m. before U.S. Magistrate Judge Barbara A. McAuliffe. If convicted, he faces a maximum sentence of 20 years in prison, a $250,000 fine, and a lifetime of supervised release. (Docket # 1:14-CR-052 LJO)
This case is the result of an investigation by the Ceres Police Department and the Modesto FBI Office with initial assistance from the Sacramento County Sheriff’s Office. Anyone with information relevant to the investigation is encouraged to contact the Modesto office of the FBI at 209-543-7846.
In the second indictment, Allen Kendrick, 47, of Escalon, was charged with one count of receiving and distributing child pornography from June 2013 through December 2013. According to a previously filed criminal complaint, Google reported to NCMEC that on December 10, 2013, six images of suspected child pornography were associated with a Google account. NCMEC referred the matter to law enforcement, and a detective with the Ceres Police Department discovered that the Google account had been accessed from residences in Modesto and Escalon. Additional investigation revealed that Kendrick was a registered sex offender on GPS location monitoring, and the GPS records confirmed that Kendrick was at the residences in Modesto and Escalon when the child pornography had been accessed. This case is the result of an investigation by the Ceres Police Department and the Modesto FBI Office with assistance from the California Department of Corrections and Rehabilitation Division of Adult Parole Operations.
Kendrick has been ordered detained as a danger to the community and a flight risk. He will be arraigned on March 25, 2014, at 1:30 p.m. by Magistrate Judge Barbara A. McAuliffe. If convicted, he faces a maximum potential prison sentence of 40 years, a fine of up to $250,000, and a lifetime term of supervised release. (Docket # 1:14-CR-055-LJO)
In the third indictment, Lorenzo Hernandez Martinez, 37, of Bishop, was charged with one count of attempted transfer of obscene material to a minor. According to a criminal complaint, Martinez communicated through Facebook chats from mid-October 2013 through February 2014 with someone whom he believed to a 14-year-old girl in Oregon. Martinez quickly turned the communications in a sexual direction, and he repeatedly transmitted lewd images. In fact, Martinez was communicating with an undercover detective in Corvallis, Oregon. The Corvallis Police Department worked with the Bishop Police Department and the Bakersfield FBI office to identify the defendant. When a search warrant was executed at his residence in Bishop on March 11, 2014, agents seized a cellphone that contained communications with the detective in Oregon and sexually explicit.
Martinez has been ordered detained as a danger to the community and a flight risk. If convicted, he faces a maximum prison term of 10 years, a potential fine of $250,000, and a three-year term of supervised release. He will be arraigned on March 24, 2014, at 1:30 p.m. by U.S. Magistrate Judge Barbara A. McAuliffe. (Docket # 1:14-CR-053 LJO)
Assistant United States Attorney David Gappa is prosecuting all three cases. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. If the defendants are convicted, their sentence would 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.
They have been brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.
Naytahwaush Man Sentenced for Failure to Report to PrisonRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 20, 2014, Jason Thomas Bellanger, 37, Naytahwaush, Minn., was sentenced before U.S. District Judge Ralph R. Erickson to 12 months in prison for Failure to Appear to the Bureau of Prisons facility to begin a term of incarceration.
On June 10, 2013, Bellanger was sentenced before Judge Erickson to a term of incarceration for aiding and abetting the distribution of a controlled substance. Judge Erickson allowed Bellanger to self-report to the designated Bureau of Prison facility no later than 2:00 p.m. on August 19, 2013. Bellanger failed to report and was eventually apprehended by the U.S. Marshal Service on October 11, 2013. The sentence imposed on the Failure to Appear is consecutive to the underlying sentence imposed on June 10, 2013 for the aiding and abetting conviction. Bellanger was also ordered to pay a $100 special assessment to the Crime Victims Fund.
The case was investigated by the United States Marshals Service.
Assistant U.S. Attorney Janice M. Morley prosecuted the case.
Moorhead Husband and Wife Each Receive 18 Year Sentence for Drug Trafficking ConspiracyRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 20, 2014, Al Owen Johnson, 45, and Cassandra Anne Kasowski, 39, both from Moorhead, Minn. were sentenced before U.S. District Judge Ralph R. Erickson to serve 18 years in prison for conspiracy to possess with intent to distribute and distribution of a controlled substances. Judge Erickson also ordered both of them to five years supervised release as well as paying $100 special assessment to the Crime Victims Fund.
The conspiracy involved the transportation of kilogram quantities of methamphetamine from Texas that were distributed in the Fargo-Moorhead area. Co-conspirators also obtained large quantities of marijuana from the Minneapolis area and distributed throughout the local area. Other members of the conspiracy already sentenced include Juan Cerna 18 ½ years in prison, Steven Schmidt, five years in prison, Brandon Elsenpeter and Jonathan Lewis three years’ supervised probation and Allison Hunter 24 months’ supervised probation. David Cerna Jr., pleaded guilty during trial and will be sentenced on April 14, at 10:00 a.m. U.S. District Court.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, North Dakota Bureau of Criminal Investigations, Fargo and Moorhead Police Departments, Cass County Drug Task Force and Grand Forks Narcotics Task Force.
First Assistant U.S. Attorney Chris Myers and Assistant U.S. Attorney Brett Shasky prosecuted the cases.
Montgomery County Man Convicted in Violent Sex Trafficking ConspiracyRead the Press Release
Greenbelt, Maryland – A federal jury convicted Jean Claude Roy, a/k/a “Dredd the Don,” and “Dreddy,” age 31, of Germantown, Maryland, late yesterday of conspiracy to commit sex trafficking by force, fraud and coercion, three counts of interstate transportation for prostitution, and witness and evidence tampering.
The verdict was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Department of Justice Civil Rights Division Jocelyn Samuels; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.
"This defendant preyed on vulnerable young women and exploited them for prostitution,” stated Acting Assistant Attorney General Samuels. “The Civil Rights Division is committed to seeking justice on behalf of victims of human trafficking."
“Protecting our communities from those who engage in human trafficking is a top priority for HSI,” said William Winter, special agent in charge of HSI Baltimore. “As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to evidence presented during the two week trial, between August and September 2012 Roy transported a victim across state lines to engage in prostitution. He also took the victim’s identity documents, kept all of the victim’s money, and bragged to her about beating murder charges.
In November 2012 Roy recruited co-defendant Brittney Creason to engage in prostitution at Roy's direction. Thereafter, Creason helped Roy recruit and transport girls from Illinois and North Carolina to engage in prostitution. Roy conspired to force the women to engage in prostitution by again bragging about beating murder charges, taking their identity documents and taking their money.
Trial evidence also showed that from January 1 to January 10, 2013, while Roy was in jail on related state charges, he called an individual several times and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.
Roy faces a maximum sentence of life in prison for conspiracy to commit sex trafficking; a maximum of 10 years in prison for each of three counts of interstate transportation for prostitution; and a maximum of 20 years in prison for witness and evidence tampering. U.S. District Judge Paul W. Grimm scheduled sentencing for July 16, 2014 at 9:30 a.m.The jury found Roy not guilty of sex trafficking and attempted sex trafficking by force, fraud and coercion; and possessing and brandishing a firearm during a crime of violence.
Brittney Creason, a/k/a “Kitty Amor,” age 19, of Decatur, Illinois, previously pleaded guilty of using a facility in interstate commerce for an illegal activity, and awaits sentencing.
This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human Trafficking/index.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.Mississippi Man Sentenced for Wire FraudRead the Press Release
Gulfport, Miss. – Vester Ray Bassham, 46, of Gautier, Mississippi, was sentenced by U.S. District Judge Louis Guirola, Jr. to serve five months in federal prison followed by five months home confinement with electronic monitoring and three years of supervised release for wire fraud in connection with the Deepwater Horizon Oil Spill, announced U.S. Attorney Gregory K. Davis. Bassham was also ordered to pay restitution in the amount of $26,000.
Bassham knowingly devised and carried out a scheme to defraud the Gulf Coast Claims Facility established by BP Exploration and Production, Inc. to administer, process, and settle certain claims of individuals and businesses that had been impacted by the Deepwater Horizon Oil Spill. The investigation revealed that Bassham made false representations in his claim for damages by alleging that he lost earnings and profits and work hours as an electrician providing services for Torguson Contruction, LLC, in Jackson County, Mississippi, as a result of the Deepwater Horizon Oil Spill. As a result of his scheme, Bassham caused $26,000.00 to be wired and deposited into his bank account in Biloxi, Mississippi.
The case was investigated by agents of the United States Secret Service, and prosecuted by Assistant U.S. Attorney Andrea Jones.
This case was also brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.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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Mechanicsburg Doctor and Owner of Two Medical Facilities Sentenced to 15 Months ImprisonmentRead the Press Release
The United States Attorney for the Middle District of Pennsylvania announced that today, Chief United States District Court Judge Christopher Conner sentenced a Mechanicsburg doctor, Timothy Clark, age 47 to 15 months imprisonment for health care fraud and pension fraud.
Clark was also ordered to pay restitution of $130,535.05 and forfeiture of $105,518.46.
According to United States Attorney Peter Smith, on April 22, 2013, Clark pleaded guilty to two indictments. In June 2012, Clark was indicted on charges that from July 2010 through December 2011, as the owner of Central Pennsylvania Pulmonary Associates (“CPPA”) and Sleep Disorder Centers of Central Pennsylvania, Clark withheld employee 401(k) contributions and failed to deposit the withheld funds into their 401(k) plan. Clark’s employees lost approximately $25,000.
In July 2012, Clark was indicted on charges that from December 2007 through September 2008, Clark who provided critical care services to patients of Holy Spirit Hospital, intentionally inflated the amount of time the health care providers he employed spent with each patient, thereby fraudulently inflating the claims he submitted to Medicare, Highmark, Inc. and Capital Blue Cross.
The case involving the health care fraud and money laundering was investigated by the Pennsylvania Office of the Attorney General Insurance Fraud Section; the U.S. Department of Health and Human Services Office of Inspector General, the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigations.
The case involving the employee plan embezzlement was investigated by the U.S. Department of Labor, Office of Inspector General and the U.S. Department of Labor Employee Benefits Security Administration.
Both cases were prosecuted by Assistant United States Attorney Joseph J. Terz.
McAlester Man Sentenced to 188 Months for Pseudoephedrine Possession/Distribution and RacketeeringRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that LARRY EUGENE PIRPICH, JR., age 53, of McAlester was sentenced to 188 months imprisonment, followed by 3 years of supervised release for Conspiracy to Possess and Distribute Pseudoephedrine, a List I Chemical, Used to Manufacture a Controlled Substance in violation of Title 21, United States Code, Sections 846, and 841(c)(2) and 10 counts of Interstate Travel in Aid of Racketeering Enterprises in violation of Title 18, United States Code, Section 1952(a)(3).
PIRPICH was Indicted in December 2012, along with SHILA ANN PARKER, age 32, of McAlester, Oklahoma. Both defendants pled guilty in March 2013.
Charges arose from an investigation by the Drug Enforcement Administration, Oklahoma Bureau of Narcotics, Bureau of Indian Affairs, McAlester Police Department, Oklahoma District Attorney District 18 Drug Task Force, Pittsburg County Sheriff’s Office, Choctaw Nation Tribal Police, Krebs Police Department, Stillwater Police Department, Shawnee Police Department, Tulsa Police Department, Broken Arrow Police Department, Kiowa Police Department, Lamar County Texas Sheriff’s Office, and Sherman, Texas Police Department.
The Indictment, alleged that beginning in or about January 2010, and continuing until in or about July 2012, the defendant conspired with others to possess and distribute a list I chemical, pseudoephedrine, knowing and having reasonable cause to believe the pseudoephedrine would be used to manufacture methamphetamine.
While residing in McAlester, Oklahoma, PIRPICH would purchase Pseudoephedrine from locations within Oklahoma, Texas, Colorado, and New Mexico for the purpose of manufacturing methamphetamine within the Eastern District of Oklahoma and elsewhere. PIRPICH possessed Oklahoma, Texas, Colorado, and Ohio state identification which enabled him to make pseudoephedrine purchases in multiple states. The defendant was aware of the pseudoephedrine purchase limits in Oklahoma and would travel to other states to make pseudoephedrine purchases when his purchase limits had been met in Oklahoma. It is a violation of Title 21 U.S.C. Section 844(a) for a person to knowingly or intentionally purchase at retail during a 30 day period more than 9 grams of pseudoephedrine.
The investigation further revealed that PIRPICH purchased in excess of 9 grams of pseudoephedrine in a single day. During the course of the conspiracy, PIRPICH individually purchased 1.82 kilograms of pseudoephedrine. At times throughout the conspiracy, PIRPICH would steal, attempt to steal or purchase items utilized in the manufacture of methamphetamine, in addition to pseudoephedrine, such as lithium batteries, camp fuel, denatured alcohol, and acetone.
The Honorable James H. Payne, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal prison at which he will serve his nonparolable sentence.
Mark F. Green, United States Attorney for the Eastern District of Oklahoma, stated, “Purchasing pseudoephedrine for the manufacture of methamphetamine has become such an endemic problem within this district and throughout the country, that many states have enacted laws restricting its purchase. Oklahoma was in the forefront of states imposing these restrictions. In spite of these laws, criminals attempt to find ways to circumvent them. This case should be a powerful indication that efforts to get around these laws will not be tolerated. When efforts to evade these laws are discovered, violators will be vigorously prosecuted resulting in lengthy prison sentences.”
The investigation was a combined effort and operation coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led in and coordinated by the Office of the United States Attorney.
Assistant United States Attorney Shannon L. Henson represented the United States.
Maui Businessman Pleads Guilty to Tax FeloniesRead the Press Release
HONOLULU – On March 20, 2014, Charles Loewen (“Loewen”), age 57, the owner of Paradise Stone & Tile and resident of Maui, today pled guilty to conspiring to defraud the United States and filing a false claim for tax refund before United States District Judge Derrick K. Watson. Loewen faces a maximum term of imprisonment of five years on each of the two charges when he is sentenced on July 3, 2014 at 9:30 a.m.
United States Attorney Florence T. Nakakuni said that, according to the First Superseding Indictment, Loewen conspired to use a scheme in which he and his wife falsely claimed tax refunds from the Internal Revenue Service (“IRS”) totaling $2,353,173.22. He created fake supporting tax documentation, specifically phony 1099-OID Forms to make it appear as if the IRS owed him a large tax refund, when in fact the IRS did not.
According to information produced in court, Loewen further conspired to conceal his Paradise Stone & Tile business income from the IRS. After the State of Hawaii Department of Taxation levied two of Loewen’s Territorial Savings Bank accounts, he closed these accounts. Loewen’s wife opened an Arizona bank account, and Loewen began depositing his Paradise Stone & Tile business income into this Arizona account. Loewen later submitted false federal tax returns to the IRS claiming that he earned zero net income for three tax years, when in fact he had earned net income for those years.
The case was investigated by the Internal Revenue Service -- Criminal Investigation. The prosecution was handled by Assistant United States Attorney Cynthia Lie.
Massapequa, N.Y., Man Pleads Guilty to Rolling Back Odometers in Scheme That Defrauded Dozens of Car BuyersRead the Press Release
A Massapequa, N.Y., man pleaded guilty today in U.S. District Court in Allentown, Pa., to conspiracy to commit odometer tampering, the Department of Justice announced. The defendant, Edward Capicchioni, 53, pleaded guilty to one count of conspiracy to tamper with odometers and make false odometer certifications. Capicchioni rolled back odometers on used cars and trucks to make the vehicles appear more valuable. Doing business under the company name of The General’s Auto Sales, Capicchioni sold more than 50 vehicles with rolled back odometers.
“Tampering with a car’s odometer in order to trick a would-be buyer is not only pernicious, it is a federal crime,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “A car is an expensive purchase – indeed, for many of us, the most expensive purchase of our lives – and we have a right to know that the car we are buying is what it appears to be. The Department of Justice will continue to take action against those who seek to defraud consumers.”
Capicchioni admitted to purchasing high-mileage cars, sport-utility vehicles and trucks from individual sellers in New York, Pennsylvania, Rhode Island and Maryland. Capicchioni then worked with a co-conspirator to roll back and alter the odometers and resold the vehicles at a wholesale auto auction in Pennsylvania. Capicchioni also took steps to hide his odometer fraud scheme. He checked the Carfax public database to see if it included a mileage entry that was higher than the false, lower mileage to which he reset the odometer. When Carfax included a higher mileage, Capicchioni submitted to Carfax fraudulent documentation in the name of the vehicle’s prior owner, in order to have the higher mileage reading removed.
After Carfax discovered Capicchioni’s fraud scheme through an internal investigation, Carfax personnel alerted the Office of Odometer Fraud Investigation at the National Highway Traffic Safety Administration (NHTSA). NHTSA conducted additional investigation into the full scope of Capicchioni’s criminal activities, and Carfax continued to provide information and assistance throughout NHTSA’s investigation.
This case is being prosecuted by Trial Attorney John W. Burke with the Consumer Protection Branch of the U.S. Department of Justice.
NHTSA has established a special hotline to handle odometer fraud complaints. Individuals with information relating to odometer tampering should call (800) 424-9393 or(202) 366-4761. Tips on detecting and avoiding odometer fraud are available at www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf . More information on odometer fraud is available at http://www.nhtsa.gov/Odometer-Fraud .
Maryland Man Convicted in Violent Sex Trafficking ConspiracyRead the Press Release
A federal jury convicted Jean Claude Roy, aka Dredd the Don and Dreddy, age 31, of Germantown, Md., late yesterday of conspiracy to commit sex trafficking by force, fraud or coercion, three counts of interstate transportation for prostitution and witness and evidence tampering.
The verdict was announced by Acting Assistant Attorney General Jocelyn Samuels for the Department of Justice Civil Rights Division, U.S. Attorney Rod J. Rosenstein for the District of Maryland, Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Chief J. Thomas Manger of the Montgomery County Police Department.
“This defendant preyed on vulnerable young women and exploited them for prostitution,” said Acting Assistant Attorney General Samuels. “The Civil Rights Division is committed to seeking justice on behalf of victims of human trafficking.”
“Protecting our communities from those who engage in human trafficking is a top priority for HSI,” said Special Agent in Charge Winter. “As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”
According to evidence presented during the two week trial, between August and September 2012, Roy transported a victim across state lines to engage in prostitution and forced the victim to engage in prostitution by taking the victim’s identity documents, keeping all of the victim’s money and bragging about beating murder charges.
In November 2012, Roy recruited co-defendant Brittney Creason to engage in prostitution at his direction. Thereafter, Creason helped Roy recruit and transport girls from Illinois and North Carolina to engage in prostitution. He continued to force women to engage in prostitution by bragging about beating murder charges, taking their identity documents and taking their money.
Trial evidence also showed that from Jan. 1 through Jan. 10, 2013, while Roy was in jail on related state charges, he called an individual several times and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.
Roy faces a statutory maximum sentenced of life in prison for conspiracy to commit sex trafficking by force, fraud or coercion; a statutory maximum of 10 years in prison for each of three counts of interstate transportation for prostitution; and a statutory maximum of 20 years in prison for witness and evidence tampering. U.S. District Judge Paul W. Grimm scheduled sentencing for July 16, 2014.
The jury found Roy not guilty of sex trafficking and attempted sex trafficking by force, fraud and coercion; and possessing and brandishing a firearm during a crime of violence.
Creason, aka Kitty Amor, age 19, of Decatur, Ill., previously pleaded guilty to using a facility in interstate commerce for an illegal activity and awaits sentencing.
This case was investigated by the Maryland Human Trafficking Task Force, which was formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit this website.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
Acting Assistant Attorney General Samuels and U.S. Attorney Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation. They also thanked Assistant U.S. Attorney Kristi N. O’Malley and Trial Attorney William E. Nolan of the Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.
Maryland Man Charged with Stealing Bank Cards from Reading Mail Distributino CenterRead the Press Release
John Smith, 45, of Belcamp, Maryland, was charged today by Information with bank fraud and aggravated identity theft, announced United States Attorney Zane David Memeger.
According to the information, between January 2011 and January 2013, the defendant was employed at the Pitney-Bowes mail distribution center in Reading, Pennsylvania, and he stole hundreds of Bank of America bank cards and sold them to other persons, knowing that the stolen cards would be used to make fraudulent purchases.
If convicted the defendant faces a maximum possible sentence of 32 years in prison, five years of supervised release, a fine of $1.25 million, and a $200 special assessment.
The case was investigated by the U.S. Secret Service and is being prosecuted by Assistant United States Attorney Laurie Magid.
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PATTY HARTMAN, Media Contact, 215-861-8525Margate Resident Pleads Guilty in Identity Theft Tax Refund Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service, announce that Louis A. Francois, 44, of Margate, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Sentencing is scheduled for June 5, 2014 at 11:30 a.m. before U.S. District Judge Donald M. Middlebrooks.
According to court documents, Francois owned and operated a tax preparation business called A&I Multi Services (A&I) located in Oakland Park. Francois stole personal identifying information (PII) of various individuals, including their names, dates of birth, social security numbers, and addresses, for the purpose of filing fraudulent U.S. income tax returns claiming tax refunds in those individuals’ names. Subsequently, Francois printed out the refund checks payable to the persons whose PII was used at A&I. The checks were in the amount of the fraudulently obtained tax refunds minus Francois’ “tax preparation” fees and other fees. The “tax preparation” fees were deposited into Francois’ bank account. Francois went to a check cashing store located next door to A&I with the fraudulently obtained tax refund checks and fraudulent Florida driver's licenses matching the stolen identities on the checks and cashed them.
From July 2010 through June 2011, the total amount of U.S. Treasury checks cashed by Francois and the total amount of fraudulent refunds requested by Francois is approximately $355,000. The number of victims involved is greater than ten, but fewer than fifty.
Francois faces a maximum sentence of twenty years in prison for the wire fraud charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Secret Service. This case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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.
Major Drug Dealer SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Curtis Bernard Donaldson, aged 33, of Camilla, Georgia, was sentenced on Wednesday, March 19, 2014, to serve 27 years in federal prison for conspiracy to possess with the intent to distribute marijuana, cocaine and cocaine base. The sentence was handed down by the Honorable W. Louis Sands, United States District Court Judge, in Albany, Georgia.Mr. Donaldson entered a guilty plea to the charges on September 25, 2013. In his plea agreement, Mr. Donaldson admitted that he was a major distributor of cocaine, crack cocaine and marijuana in Southwest Georgia. His organization maintained drug ties with Mexican nationals who were importing illegal drugs into the United States. After a hearing, the Court held Mr. Donaldson responsible for distributing over 2.5 kilograms of crack cocaine, one-half kilogram of powder cocaine, 272 kilograms of marijuana and 6.8 grams of MDMA.
U.S. Attorney Michael Moore said, "It is obvious from the quantities and diversity of the drugs Mr. Donaldson was distributing that he was essentially a 'one man crime wave' in Southwest Georgia. It was the effective cooperation and collaboration between federal, state and local law enforcement in this case that resulted in bringing to an end his trade in illicit drugs."
The case was investigated by agents from the U.S. Drug Enforcement Administration, Pelham Police Department, Thomas County Sheriffs Office Vice and Narcotics Squad, Georgia State Patrol and Webster County Sheriffs Office. Assistant United States Attorney Leah E. McEwen prosecuted the case for the government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Leader of Newburgh Bloods Sentenced in Manhattan Federal Court to Life Plus 32 Years in Prison for Murder and Other OffensesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANTHONY BOYKIN and JUSTIN SIMMONS were sentenced Tuesday in Manhattan federal court for various racketeering, murder, attempted murder, narcotics conspiracy, and firearms offenses. BOYKIN was sentenced to life plus 32 years in prison, and SIMMONS was sentenced to 50 years in prison. In June 2013, after a four-week jury trial before United States District Judge Colleen McMahon, the jury convicted BOYKIN and SIMMONS of charges arising out of their involvement, from 2006 through 2013, in the criminal activities of the Bloods gang (the “Newburgh Bloods”) – a violent street gang that was involved in drug trafficking and multiple acts of violence, including murders and attempted murders, in Newburgh, New York. In particular, BOYKIN was found guilty of participating in a racketeering enterprise, participating in a racketeering conspiracy, participating in various racketeering offenses, including murder, participating in a crack-cocaine distribution conspiracy, and possessing, using, and carrying firearms, and SIMMONS was found guilty of participating in a racketeering conspiracy, participating in a crack-cocaine distribution conspiracy, and possessing, using, and carrying firearms. They were both sentenced in Manhattan federal court by Judge McMahon.
Manhattan U.S. Attorney Preet Bharara said: “The Newburgh Bloods have made victims not only of those they shot, stabbed, and killed, but also of every Newburgh resident who has had to live with the terror wrought by the gang’s legacy of drugs and violence. Anthony Boykin and Justin Simmons perpetuated the plague of violence. The sentences handed down show that if you choose to engage in drug-dealing and gang violence, you will be held accountable for your actions and deprived of your liberty.”
According to the Superseding Indictment and evidence admitted at trial:
From 2006 through 2013, BOYKIN was a member, and then leader, of a racketeering enterprise – the Newburgh Bloods. As part of his participation in that enterprise, BOYKIN conspired to murder Lamont Young, a local marijuana dealer, which culminated in Young’s murder on March 4, 2009. He participated in two additional conspiracies to commit murder, which culminated in the vicious attacks of Ishmael Gillian and David Freeman on August 24, 2008 and September 20, 2008, respectively. BOYKIN also robbed a suspected narcotics dealer in August 2009.
From 2007 through 2011, BOYKIN and SIMMONS, a soldier in the Newburgh Bloods, participated in a conspiracy to distribute crack cocaine on Landers Street in Newburgh, New York, and throughout the city. They also possessed firearms in connection with their drug trafficking and racketeering activities with the Newburgh Bloods gang.
In addition to the prison terms, Judge McMahon sentenced BOYKIN to five years of supervised release and a $25,000 fine and ordered him to pay a special assessment of $1,100, and SIMMONS to ten years of supervised release and a $10,000 fine and ordered him to pay a special assessment of $400.
Mr. Bharara praised the outstanding efforts of the Hudson Valley Safe Streets Task Force, including the FBI, the City of Newburgh Police Department, the Orange County Sheriff’s Office, and the New York State Police, in connection with this investigation.
Assistant United States Attorneys Michael D. Maimin, Amie N. Ely, and Emil J. Bove III are in charge of the prosecution.
Las Cruces Man Pleads Guilty to Making Threats Against the PresidentRead the Press Release
ALBUQUERQUE – Tracy York White, of Las Cruces, N.M., pleaded guilty this morning in Las Cruces federal court to making threats against the President of the United States under a plea agreement with the U.S. Attorney’s Office.
White was arrested on Oct. 28, 2013, on a criminal complaint alleging that he threatened the President during a telephone conversation with an employee of the Social Security Administration in Cleveland, Ohio.
During today’s proceedings, White entered a guilty plea to a felony information charging him with threatening the President on Oct. 24, 2013, in Doña Ana County, N.M. According to the information, White threatened to get a firearm, go to the White House, and kill the President. In his plea agreement, White stated that he made the threat in frustration and knew what he was doing was wrong.
White is in federal custody and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, White faces a maximum penalty of five years in prison.
This case was investigated by the Albuquerque office of the U.S. Secret Service with assistance from the Las Cruces Police Department, and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.Kirbyville Man Pleads Guilty to $1.3 Million K2 ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced a Kirbyville, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute synthetic marijuana, commonly referred to as K2.
Michael J. Saguto, 43, of Kirbyville, pleaded guilty before U.S. Magistrate Judge David P. Rush to participating in a conspiracy to commit mail fraud and to participating in a conspiracy to commit money laundering. Under the terms of today’s plea agreement, Saguto must forfeit to the government $1,354,034, which represents the proceeds of the mail fraud conspiracy and for which Saguto is jointly and severally liable with his co-defendants.
By pleading guilty today, Saguto admitted that he conspired with others between March 1, 2011, and June 24, 2013, to defraud the Food and Drug Administration and to defraud the public by falsely representing that a number of synthetic cannabinoid products were “incense” or “potpourri” and “not for human consumption.” In reality, Saguto admitted, these substances contained compounds that were intended for human consumption as a drug.
Based upon the invoices, ledgers, and product seizures by law enforcement, this conspiracy was responsible for the manufacture and/or distribution of at least 188.14038 kilograms of synthetic cannabinoid products.
Co-defendants Travis E. Butchee, also known as “Donkey,” 38, of Springfield, and Christian L. Turner, 46, of Kirbyville, have also pleaded guilty. Butchee pleaded guilty to the same two conspiracy charges; Turner pleaded guilty to possession with intent to distribute a controlled substance analogue and to being a felon in possession of firearms. Travis Butchee’s wife, Victoria A. Butchee, also known as Victoria A. Wohlin, 29, of Springfield, also has pleaded guilty to her role in the mail fraud conspiracy.
Travis Butchee opened The Man Cave, a retail business at 1927 S.Glenstone in Springfield, in February 2013. Travis Butchee and Saguto are the owners of Southern Spice, LLC and Saguto is the owner of Blues Away, a head shop and novelty store in Memphis, Tenn. Turner was employed by Saguto at Blues Away.
Today’s plea agreement cites a number of transactions in which materials used to manufacture and distribute synthetic cannabinoids were shipped via UPS or FedEx to members of the conspiracy – including controlled substance analogues (synthetic chemical compounds similar to THC, the psychoactive ingredient in marijuana), green leafy substances which served as carrier media, labels that were affixed to packages of “Donkey Punch,” “Jolly Grape Giant,” “South of the Tracks,” “Baby Face,” “Scarface,” “Hillbilly Hay,” and other synthetic cannabinoid products, and foil and plastic packaging bags.
Travis Butchee and Saguto also admitted that they conducted financial transactions that involved the proceeds of the unlawful mail fraud conspiracy. They conspired to wire funds to the People’s Republic of China in order to carry out the conspiracy.
Turner, who has been convicted of a felony, admitted that he was in possession of a Ruger .22-caliber rifle, a Marlin 30-30 caliber rifle, a Rossi .243-caliber rifle with an interchangeable 20-gauge barrel, a Remington 12-gauge shotgun and a Remington .270-caliber rifle. Taney County sheriff’s deputies seized those firearms when they responded to an assault call on March 15, 2013. Turner was arrested and a search warrant was served on his residence. The following items were seized: the seven long guns and associated ammunition, drug paraphernalia, including 242 smoking pipes, and three bags of synthetic cannabinoids.
Under federal statutes, Saguto and Travis Butchee are each subject to a sentence of up to 40 years in federal prison without parole, plus a fine up to $750,000. Turner is subject to a sentence of up to 30 years in federal prison without parole, plus a fine up to $1,250,000. Victoria Butchee is subject to a sentence of up to 20 years in federal prison without parole, plus a fine up to $250,000. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the U.S. Postal Inspection Service, IRS-Criminal Investigation, the Missouri State Highway Patrol, COMET (Combined Ozarks Multi-jurisdictional Enforcement Team) and the Springfield, Mo., Police Department.
Jefferson City Man Indicted for Distributing HeroinRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., man has been indicted by a federal grand jury for distributing heroin.
Xavier Deprey Johnson, 31, of Jefferson City, was charged in a two-count indictment returned by a federal grand jury in Jefferson City on Wednesday, March 19,2014.
The federal indictment indictment charges Johnson with one count of distributing heroin in Cole County, Mo., on July 30, 2013, and one count of possessing heroin with the intent to distribute in Cole County on Aug. 27, 2013.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the U.S. Drug Enforcement Administration and the Jefferson City, Mo., Police Department.
Herrin Man Sentenced for Bank FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that Mark P. Troehler, 39, of Herrin, Illinois, was sentenced in United States District Court in Benton, Illinois on one count of Bank Fraud.
Troehler was sentenced to two months in federal prison followed by two months of home confinement, three years supervised released, and ordered to pay $80,190 in restitution to the Bank of Marion, the victim of the fraud. Troehler previously pled guilty to submitting false lien waivers to the Bank of Marion where he had taken out a construction loan. Troehler, who was at the time a contractor, took out a loan from the bank to build a home in Herrin, Illinois, and then utilized the funds for personal and unrelated business expenses, while supplying false documents to the bank indicating the funds were being used to build the home.
The investigation was conducted by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys Ranley R. Killian.
Hazardous Waste Transporter SentencedRead the Press Release
Michael J. Moore, United States Attorney for the Middle District of Georgia, announced that Robert Lewis, aged 42, of Atlanta, Georgia, was sentenced on Thursday, March 20, 2014, to serve 10 months in federal prison for unlawful storage of hazardous waste. The sentence was handed down by the Honorable C. Ashley Royal, United States District Court Judge, in Macon, Georgia.Mr. Lewis entered a guilty plea to the charges on September 26, 2013. In his plea agreement, Mr. Lewis admitted that he owned and operated a waste hauling business under the name of Simple Solutions, Inc. From about May 2007 until April 2008, Mr. Lewis transported hazardous waste, generated by a local manufacturing plant, to a licensed disposal facility.
On February 26, 2009, forty 55-gallon drums and sixteen 275-gallon totes of this hazardous waste material were found to be improperly stored at a self-storage facility in Macon, Georgia. The units had been rented by Mr. Lewis in July 2007. Mr. Lewis rented four additional units in August 2007. It was also determined that Mr. Lewis had improperly stored hazardous waste ,.including highly flammable solvents and highly toxic cyanide wastes, in Rex, Georgia
and at his home in Albany, Georgia.U.S. Attorney Michael Moore said, "The improper and illegal storage of these extremely dangerous materials in areas where members of the public could unsuspectingly be placed in great danger is a matter of particular concern in this case."
"The defendant knowingly stored highly flammable hazardous waste without regard to the dangers it posed," said Maureen O'Mara, Special Agent in Charge of EPA's criminal program in Georgia. "Handling and storing hazardous waste illegally can put public health at serious risk, threaten groundwater supplies, and run the destructive risk of fire. Today's sentencing demonstrates that violators who disregard our nation's environmental laws will be prosecuted."
The case was investigated by agents from the U.S. Environmental Protection Agency. Assistant United States Attorney Paul C. McCommon III prosecuted the case for the government.
Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Grand Junction Resident Sentenced to Lengthy Prison Term for Distribution of Child PornographyRead the Press Release
DENVER – James Boblett, age 34, of Grand Junction, Colorado, was sentenced last week by U.S. District Court Judge Raymond P. Moore to serve 204 months (17 years) in federal prison for the distribution of child pornography, U.S. Attorney John Walsh and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Denver Special Agent in Charge Kumar Kibble announced. Following his 17 year prison sentence, Judge Moore ordered Boblett to serve 10 years on supervised release. The defendant appeared at the sentencing hearing in custody, and was remanded at its conclusion.
Boblett was charged by Information on October 2, 2013. He pled guilty before Judge Moore on December 19, 2013. He was sentenced on March 13, 2014.
According to the stipulated facts contained in the defendant’s plea agreement, on July 8, 2011, a police officer with the Kenton County (Kentucky) Police Department Internet Crimes Against Children Task Force accessed the Internet using the undercover persona of a divorced mother with minor daughters. Between July 2011 and February 2012 James Boblett engaged the undercover officer in multiple Internet chats. The defendant distributed more than 50 images and 20 videos depicting child pornography to the undercover officer, including a video of child pornography depicting a 3-year-old child. In addition to distributing child pornography during the communications, Boblett showed himself on a webcam chatting and masturbating.
During the chats Boblett sent the undercover officer a sexually explicit image of a 13-year-old minor child, who authorities were later able to identify. Investigators determined that Boblett had been chatting with the minor child over the course of approximately one year, encouraging her to take sexually exploitive pictures of herself and send them to him. Boblett also sent the minor child images of child pornography and images and videos of his penis. At the change of plea hearing, Boblett admitted to distributing child pornography.
“The defendant distributed child pornography to countless others which is reason enough for this lengthy sentence,” said U.S. Attorney John Walsh. “As a result of the defendant’s conduct, the innocent children portrayed in those images were systematically victimized.”
“This significant federal prison sentence removes from the streets another child sexual predator for a long time,” said Kumar C. Kibble, special agent in charge of HSI Denver. “HSI routinely works with other law enforcement agencies to identify, locate and pursue prosecution against predators like Boblett who target the most vulnerable members of our society – our children.”
The investigation was conducted by Kenton County, Kentucky Police Department and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
Boblett is being prosecuted by Assistant U.S. Attorneys Alecia Riewerts Wolak and Michelle Heldmyer.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit http://www.justice.gov/psc/ For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Fugitive Gets Forty-One Month Sentence for Transporting Drug ProceedsRead the Press Release
SAN FRANCISCO – Ruben Rivera was sentenced on March 13, 2014, to 41 months in prison for attempting to transport monetary instruments for the purpose of laundering proceeds of heroin distribution, announced United States Attorney Melinda Haag, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and FBI Special Agent in Charge David J. Johnson.
Rivera pleaded guilty on Oct. 4, 2013, to violation of 18 U.S.C. § 1956(a)(2)(B). According to the plea agreement, Rivera admitted that on May 11, 2001, he attempted to smuggle $43,658, which he knew to be proceeds of heroin sales in the United States, across the border to Mexico. Rivera was given the money by co-defendant Luis Manuel Garcia Hernandez, a/k/a “Piojo,” previously sentenced to 135 months of imprisonment for conspiracy to distribution heroin in violation of 21 U.S.C. § 846, whom Rivera knew to be a heroin dealer, to deliver to Garcia Hernandez’s contacts in Mexico. Rivera was stopped at the U.S.-Mexican border at Nogales, Arizona, by United States border agents, and the $43,658 was seized from him at that time. Rivera had intended to transport the money through the border and into Mexico, and he knew that the money represented the proceeds of a conspiracy to distribute heroin. Moreover, he knew the transportation was designed to avoid the reporting requirement for transporting that amount of money.
On June 18, 2001, Rivera was charged by Criminal Complaint in the United States District Court for the District of Arizona with a violation of 31 U.S.C. §§ 5316(a)(1)(A) and 5332, attempting to transport U.S. currency of more than $10,000 at one time out of the United States into Mexico, without filing a report, in Case No. CR 01-2737M. Rivera was released on a bond pending trial in Arizona, and he soon thereafter became a fugitive. Rivera was charged in the Northern District of California on Nov. 6, 2001, with participating in the conspiracy to distribute heroin. He remained a fugitive as to both cases until Jan. 17, 2013, when he was arrested in Illinois by deputies of the U.S. Marshal’s Service.
“A 41-month sentence sends a strong and important message that becoming and remaining a fugitive will have serious consequences,” said U.S. Attorney Melinda Haag. “Rivera knowingly remained a fugitive for 11 years, 3 months, and 8 days. He was apprehended through the hard work of the U.S. Marshal’s Service, as well as the Drug Enforcement Administration and Federal Bureau of Investigation, which originally investigated the heroin distribution conspiracy. Although Rivera’s offense conduct was based on a single event of attempt to transport heroin proceeds to Mexico, this act was directly and knowingly intended to facilitate a large heroin distribution network.”
The sentence was handed down by The Honorable Jeffrey S. White, United States District Court Judge, following a guilty plea to one count of attempting to transport monetary instruments for the purpose of laundering, in violation of 18 U.S.C. § 1956(a)(2)(B). Judge White also sentenced the defendant to a three-year period of supervised release. The Court imposed a sentencing enhancement for obstruction of justice, based on Rivera’s fugitive status. The defendant has remained in custody since his apprehension on Jan. 17, 2013.
The prosecution is the result of an investigation by the Drug Enforcement Administration and Federal Bureau of Investigation, with assistance from the U.S. Marshal’s Service.
(Rivera superseding information )
Fourth Defendant Sentenced in Murder of U.S. Border Patrol Agent Robert RosasRead the Press Release
SAN DIEGO – Emilio Samyn Gonzales-Arenazas was sentenced today to 40 years in prison for his participation in the July 2009 robbery and murder of United States Border Patrol Agent Robert Rosas, Jr.
Gonzales, a 25-year-old Mexican national, pleaded guilty on July 25, 2011, admitting he was one of five armed individuals who conspired to rob a Border Patrol agent of his night vision device, which resulted in Agent Rosas being fatally shot during a struggle. He pleaded guilty to murder of a federal officer committed in perpetration of a robbery and unlawful confinement.
Court filings indicate that in July 2009, Gonzales and four others plotted to rob a Border Patrol agent of his night vision device. On July 23, 2009, the group, bearing firearms, traveled by car and foot to the international border near Campo, California. Gonzales entered into the United States at night and waited for a Border Patrol agent to arrive in the area while two co-conspirators stood watch on the Mexican side of the border. After Agent Rosas arrived in the area and exited his vehicle, he was detained at gunpoint. Agent Rosas resisted and, during the ensuing struggle, Gonzales and his co-conspirators shot Agent Rosas multiple times, killing him. Gonzales and his co-conspirators then stole the agent’s firearm, night vision device, and other equipment and fled back to Mexico.
In August 2010, Mexican officials arrested Gonzales at the request of the United States. Gonzales was extradited to the United States in March 2011.
Gonzales is the fourth defendant to be sentenced for Agent Rosas’s murder. In April 2010, United States District Judge M. James Lorenz sentenced Christian Daniel Castro-Alvarez to 40 years of imprisonment. On November 14, 2013, he sentenced Marcos Rodriguez-Perez to 56 years to run consecutive to a two-year sentence Rodriguez is currently serving for violating his supervised release from a prior alien smuggling conviction. On December 19, 2013, Jose Luis Ramirez-Dorantes was sentenced to 55 years in custody. The last defendant, Jose Juan Chacon-Morales, remains a fugitive, and there is a reward of up to $100,000 for information leading to his arrest or location.
After Gonzales’ sentencing, United States Attorney Laura E. Duffy expressed her condolences to Agent Rosas’s family and colleagues at the Border Patrol: “For over four and a half years, the Rosas family and Border Patrol have waited for justice to be completed against the individuals who brutally ended the life of a dedicated husband, father, son, brother, colleague, and friend. While I know there is nothing that can be done to bring Agent Rosas home again, I hope the sentences in this case provide some comfort and demonstrate that Agent Rosas and his sacrifice for his country will never be forgotten.”
Chief Patrol Agent Paul Beeson, of the U.S. Border Patrol’s San Diego Sector, said: “Border Patrol Agent Robert Rosas was a sincere professional dedicated to securing and defending our nation’s borders. He lost his life in defense of all he held dear: His country, his family and his friends. On behalf of the men and women of the U.S. Border Patrol I want to express our sincere gratitude to everyone who contributed countless hours to the investigation and prosecution of this case. Thanks to the cooperation of law enforcement agencies on both sides of the border and to the U.S. Attorney’s Office, those responsible for Robert’s murder have been brought to justice.”
FBI Special Agent in Charge Daphne Hearn commented, “Today’s sentencing demonstrates the FBI's continued commitment to hold those responsible for the death of U.S. Border Patrol Agent Robert Rosas. Agent Rosas served his country with dedication, honor, and courage. The FBI recognizes that no punishment will lessen Agent Rosas' death, but we hope today’s sentencing will help bring some closure to the family.”
At the sentencing, Judge Lorenz praised all federal law enforcement involved in the case for their thorough and professional investigation. Duffy also expressed her gratitude to the Federal Bureau of Investigation and Homeland Security Investigations for their tenacity and dedication. “The investigating agents from FBI and HSI worked tirelessly for many years to solve this crime and bring those responsible to justice. It was their incredible investigative efforts that made these convictions and sentences possible. They are owed much gratitude for their unwavering devotion and dedication to this investigation.”
DEFENDANT Criminal Case No. 10CR3487 Emilio Samyn Gonzales-Arenazas Age: 25 Mexico CHARGESCount 4: Title 18, United States Code, Sections 1114 and 2: Murder of a federal officer committed in perpetration of a robbery and unlawful confinement, aiding and abetting
INVESTIGATING AGENCYFederal Bureau of Investigation
Homeland Security Investigations*Indictments and complaints are not evidence that the defendant committed the crime charged. All defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Four Sentenced for Roles in $10 Million Tax Fraud and Structuring SchemeRead the Press Release
ABINGDON, VIRGINIA – Four defendants, who were part of a cash selling scheme designed to defraud the Internal Revenue Service, were sentenced today in the United States District Court for the Western District of Virginia in Abingdon.
United States District Judge James P. Jones sentenced J.D. “Dot” McReynolds, 77, of Tazewell, Va., to home confinement for a term of six months, based on McReynolds’ terminal cancer and substantial assistance to the government. In addition, McReynolds forfeited $500,000 to the government. Charles Edward “C.E.” McReynolds II, 44, of Vallscreek, W.Va., was sentenced to imprisonment for a term of three months. Timothy Gregory Allen, 43, of Hurley, Va., and Kermit Clayton Wiley, 64, of Princeton, W.Va., were each sentenced to imprisonment for a term of six months. Wiley forfeited $50,000 to the government.
The defendants were cash providers in a check cashing scheme that was designed to hide the withdrawal of cash from various coal and coal related companies by the companies’ operators. Each of the defendants who were sentenced today had pled guilty and cooperated in the investigation.
“Every United States citizen must fulfill his or her federal tax obligation," United States Attorney Timothy J. Heaphy said today. "When people like these defendants seek to evade that responsibility, we will aggressively pursue them with a coordinated effort. I congratulate all of the dedicated investigators and prosecutors who produced this result, which has recovered tax revenue for our communities.”
“No matter how the income is received, cash, check, etc., the obligations of the federal tax laws apply,” said Thomas J. Kelly, Special Agent in Charge, IRS Criminal Investigation, Washington DC Field Office. “Conspiring to defraud the government with a scheme to structure financial transactions in order to evade the payment of taxes is unlawful. The sentencing of those involved with this scheme are important reminders that IRS-CI is committed to bringing to justice those who shirk their federal income tax responsibilities.”
J.D. “Dot” McReynolds, Eddie McReynolds (deceased) and Eddie’s son, C.E. McReynolds provided cash and fraudulent invoices to the coal operators. In return, the coal operators paid the McReynoldses a ten percent fee, which they included in the check they made payable to the McReynoldses or one of their businesses. Many of the ten percent transactions involved fraudulent invoices. The transactions were designed to appear to be legitimate purchases of mine supplies. More than $10 million in cash was distributed as part of the scheme. To obtain the necessary cash to provide to the coal operators, the McReynoldses structured over $10 million in cash out of financial institutions in Virginia and West Virginia to evade currency transaction reporting requirements by making multiple withdrawals of $10,000 in cash or less. By federal law, all transactions with financial institutions involving more than $10,000 in cash are required to be reported to the government. Kermit Wiley and Timothy Gregory Allen also sold cash and disguised the transactions as sales of mine supplies, but on a smaller scale.
The investigation and prosecution resulted in the conviction of 25 defendants on felony charges in the Western District of Virginia. Twenty-three of those defendants pled guilty pursuant to plea agreements and two were convicted at trial.
The following defendants pled guilty to one felony count of conspiracy and agreed to cooperate in the prosecution. They received sentences ranging from probation to imprisonment for a term of 18 months and forfeited amounts as set forth below:
Name City Age Forfeiture Paid Sandra Marahlee Addair War, W.Va. 45 $ 50,000.00 Henry Lee Barnett Tazewell, Va. 63 $ 200,000.00 Carl Demas Blevins Tazewell, Va. 60 $ 10,000.00 David Lee Cordill Doran, Va. 57 $ 45,000.00 Billy Ray Dotson Meadowview, Va. 59 $ 45,000.00 Michael Wayne Dunlap Sumerco, W.Va. 64 $ 50,000.00 Jeffrey Kennis Justus Pounding Mill, Va. 62 $ 300,000.00 Truong “Hoppy” Van Nguyen Tazewell, Va. 56 $ 200,000.00 Hung “Sang” Quoc Nguyen Iaeger, W.Va. 39 $ 200,000.00 Angela Denise Payne War, W.Va. 42 $ 1,000.00 Michael Dwaine Poskas III North Tazewell, Va. 62 $ 30,000.00 David Raber Tazewell, Va. 53 $ 200,000.00 Clinton Lester Ramey Abingdon, Va. 57 $ 10,000.00The following defendants, who pled guilty to one felony count of conspiracy, have yet to be sentenced. They have already forfeited a total of $1,282,850 to the government.
Name City Age Sentencing Date Darrell Wayne Felts Ballard, W.Va. 64 May 6, 2014 Elmer Fuller Bristol, Va. 58 To Be Scheduled Melvin Parsley Williamson, W.Va. 47 May 5, 2014 Rosie Diane Ritchie War, W.Va. 39 April 7, 2014 John Duane Tolliver Iaeger, W.Va. 57 April 7, 2014 Allen Henry Workman Huddy, Ky. 56 May 5, 2014Sentencing dates have not yet been scheduled for the following defendants who were convicted after a two week jury trial:
Name City Age William "Bill" F. Adams, Jr. Yukon, W.Va. 55 John B. Ward War, W.Va. 42Adams was convicted of thirteen counts of structuring monetary transactions and one count of conspiracy. Ward was convicted of 24 counts of structuring monetary transactions and one count of conspiracy. At sentencing, they each face imprisonment of up to five years on the conspiracy count and up to 10 years on each structuring count. Also, they each face forfeitures of more than one million dollars.
So far, the defendants involved in the conspiracy have paid $3,476,682 in evaded taxes, $3,173,850 in forfeitures and $100,000 in delinquent Mine Safety and Health Administration penalties. In addition, information obtained during the investigation has led to several federal convictions in U.S. District Court in Beckley, WV.
Assistant United States Attorney Randy Ramseyer is prosecuting the case on behalf of the United States. The case was investigated by the Bristol, Virginia, Office of the Internal Revenue Service – Criminal Investigation. The Charleston, West Virginia, offices of the United States Attorney’s Office and the Internal Revenue Service – Criminal Investigation assisted in the investigation and prosecutions.
Former Sabinal Police Officer Sentenced to 15 Years in Federal Prison for Distribution of Child PornographyRead the Press Release
Former Sabinal (TX) police officer Jason Lee Villasana will serve 15 years in federal prison followed by ten years of supervised release after pleading guilty to distributing child pornography announced United States Attorney Robert Pitman and Federal Bureau of Investigation Acting Special Agent in Charge Aaron C. Rouse, San Antonio Division.
On August 21, 2013, Villasana, age 36, pleaded guilty to one count of distribution of child pornography. According to court records, from May 2011 until November 15, 2012, Villasana received, stored and sent images and videos of minors engaged in sexually explicit conduct. On November 15, 2012, FBI agents and investigators from the Texas Attorney General’s Law Enforcement Division executed a search warrant at the defendant’s residence and seized various electronic media belonging to the defendant. A subsequent forensics examination of the seized items revealed the presence of approximately 250 images, seven videos and 64 thumbnail images of child pornography.
Villasana has remained in federal custody since his arrest on December 18, 2012. The sentence was handed down yesterday afternoon in Del Rio by U.S. District Judge David A. Ezra.
This matter was investigated by the Federal Bureau of Investigation together with the Texas Attorney General’s Law Enforcement Division and Homeland Security Investigations (HSI). Assistant United States Attorneys Meghan M. McCalla and Matthew Watters prosecuted this case on behalf of the Government.Former Elk Grove Resident Pleads Guilty to Investment Fraud Scheme and False Statements in BankruptcyRead the Press Release
SACRAMENTO, Calif. — Vincent Thakur Singh, 45, formerly of Elk Grove, pleaded guilty today to wire fraud and false statements in bankruptcy, United States Attorney Benjamin B. Wagner announced.
According to court documents, Singh carried out an investment fraud through an entity known as the Perfect Financial Group. He targeted 190 members of the ethnic Indian Fijian community for an investment fraud that grossed approximately $20 million. Singh told investors that he was using their money for hard money lending. In fact, Singh used $12 million of investors’ money for gambling, made $2 million in currency withdrawals, spent $880,000 on a film project, and spent more than $1 million on other business ventures. Singh also used millions of dollars of investor money to pay other victims and give Perfect Financial the false appearance of success.
According to the plea agreement, on August 19, 2010, Singh declared bankruptcy and failed to disclose 19 of the bank accounts that he had used in the investment fraud.
This case is the product of an investigation by the FBI with assistance from the office of the U.S. Trustee. Assistant United States Attorney Matthew D. Segal is prosecuting the case.
Singh is scheduled to be sentenced by Judge Morrison C. England Jr. on June 12, 2014. Singh faces a maximum statutory penalty of 20 years in prison for wire fraud and five years in prison for false statements in bankruptcy. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was done in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
Former Credit Union President Sentenced to Prison for Fraud and Embezzlement SchemeRead the Press Release
The former president of a small Pierce County, Washington credit union was sentenced today in U.S. District Court in Tacoma to 18 months in prison, three years of supervised release and more than $129,000 in restitution for two counts of wire fraud and two counts of misapplication of credit union funds, announced U.S. Attorney Jenny A. Durkan. RENEE J. THOMAS, 45, of Graham, Washington, resigned as president of Community Credit Union on September 1, 2009, just as state authorities were preparing to examine the credit union because of concern about its financial performance. Following her resignation, the investigation revealed THOMAS had used a variety of means to defraud not only the credit union but an insurance company and credit card companies associated with it. At sentencing U.S. District Judge Ronald B. Leighton said, “this crime is very serious because it is the type of crime that corrodes faith in our financial system.”
According to records in the case, THOMAS committed fraud and embezzled funds in four different schemes. In 2007 THOMAS pressured an employee to falsify records related to nearly $90,000 in car loans so that she and her husband could collect disability insurance. In December 2007, THOMAS used a credit union customer’s information to take money from his line of credit. THOMAS applied the $16,500 to her bills. In August of 2009, shortly before her departure from the credit union, THOMAS forged other employees’ names to increase the limit on her company credit card. THOMAS used the increased borrowing authority for $22,000 in cash advances and other purchases. Finally, on one of her last days at the credit union, THOMAS used other employees’ computer privileges to increase a customer’s line of credit and take cash from their account. She then used some of the cash to make a payment on her credit card. The loss to the credit union for the conduct charged in the case is $126,469.
In asking for a prison sentence prosecutors wrote to the court, “As Community Credit Union’s President, Thomas owed the credit union one thing – responsible stewardship. Instead, she gave it a two-year fraud “spree,” targeting as her victims, the Credit Union, its customers, and its insurance carrier. Rather than watching out for the interest of her employees, moreover, Thomas abused her authority over them and involved them in her criminal schemes.”
The case was investigated by the U.S. Secret Service. The case was prosecuted by Assistant United States Attorney Arlen Storm.
Former City Employee Sentenced to 12 Months in Prison for Embezzling over $92,900 from the City of CherryvilleRead the Press Release
CHARLOTTE, N.C. – Former employee with the City of Cherryville, Jennifer Neal Hoyle, was sentenced to serve 12 months and a day in prison today for embezzling over $92,900 in city funds, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. In January 2013, Hoyle, 36, of Cherryville, pleaded guilty to three felony charges of program fraud, stemming from a joint federal and state investigation into misappropriated city funds.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Greg McLeod, Director of the State Bureau of Investigation (NC SBI), and Chief James W. Buie of the Gaston County Police Department join U.S. Attorney Tompkins in making today’s announcement.
U.S. District Judge Robert J. Conrad, Jr. presided over the sentencing and ordered Hoyle to serve three years of supervised release upon completion of her sentence and to pay $92,922.55 as restitution to the city.
According to filed court documents and court proceedings, Hoyle was a Senior Customer Service Representative/Utility Supervisor for the City of Cherryville, responsible for collecting and posting utility payments made by customers. Court records indicate that beginning in January 2008 through May 2011, Hoyle embezzled approximately $92,922 from the City of Cherryville by stealing some cash payments made by utilities customers paying their bills. Court records show that Hoyle took the customers’ cash payments, issued paper receipts, credited the customers’ accounts with the payment and kept the cash. Then, using her supervisory override privileges, Hoyle deleted the transaction from the computer system. Court records also show that, in order to avoid any potential customer complaints, Hoyle created entries in the “extra charge” journal, in which she “wrote off” the cash amount the customers had paid, so that when bills were generated they would not include the embezzled amount. According to court records, Hoyle’s fraud was uncovered when a customer questioned the duplicate charges on her bill and brought in her paper receipt as proof of payment, after Hoyle had failed to convert the customer’s cash payment as a “write off” in the “extra charge” journal. Hoyle was terminated from her position in May 2012.
Hoyle was ordered to self-report to the Federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation into Hoyle was handled by the FBI, SBI and the Gaston County Police Department. The prosecution is handled by Michael Savage, of the U.S. Attorney’s Office in Charlotte.
Former Assistant Director of Nicholasville Day Care Sentenced and Ordered to Pay More Than $200,000 in RestitutionRead the Press Release
LEXINGTON, KY - A former employee of a child day care center in Nicholasville, KY., was sentenced today to 30 months in federal prison and ordered to pay $201,060 in restitution for defrauding her employer.
U.S. District Judge Karen Caldwell sentenced Pamela Sandlin, 55, for fraud. Under federal law, Sandlin will have to serve at least 85 percent of her prison sentence.
Sandlin previously admitted that, over the course of several years, she fraudulently took thousands of dollars while working as the Assistant Director at the Kids Connection Learning Center (KCLC). KLLC receives more than $10,000 annually in federal program funds.
According to her plea agreement, Sandlin was responsible for collecting money from parents, making bank deposits, and documenting financial transactions for KCLC. Court documents also established that Sandlin altered company records to conceal the fraud.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, and Perrye Turner, Special Agent in Charge, FBI, jointly made the announcement.
The investigation was conducted by the FBI. Assistant U.S. Attorney Ken Taylor prosecuted this case on behalf of the federal government.
Florida Resident Sentenced in Connection withFraudulent International Lottery SchemeRead the Press Release
Angela Althea Peart was sentenced in connection with her role in a fraudulent international lottery scheme that targeted U.S. citizens, the Justice Department announced today. Peart was sentenced by U.S. District Court Judge K. Michael Moore for the Southern District of Florida in Miami to serve 33 months in prison and 5 years supervised release. A hearing on restitution has been scheduled for June 5, 2014.
Peart’s prosecution is part of the Department of Justice’s effort, working with federal and local law enforcement, to combat international lottery fraud schemes preying on American citizens. According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.
“International lottery fraud aimed at stealing from elderly victims cannot, and will not, be tolerated by the Department of Justice,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “We will seek to hold accountable those who participate in illegal lottery schemes, including those in the U.S. who facilitate schemes directed from abroad.”
“As international fraudsters focus their criminal schemes on Americans, we will do all we can to prosecute and deter such criminal activity,” said U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer. “N ow more than ever, the public needs to be mindful of these schemes to avoid falling prey to them. So long as criminals continue to line their pockets with the money of our nation’s seniors, we will be there to prosecute them and bring them to justice.”
A federal grand jury in Miami returned an indictment against Peart and co-conspirator Charmaine Anne King on Oct. 31, 2013. Judge Moore adopted a report and recommendation accepting Peart’s guilty plea on Feb. 4, 2014. Co-defendant King was convicted by a federal jury in Miami on Feb. 5, 2014, of one count of conspiracy, three counts of mail fraud and two counts of wire fraud. King’s sentencing is scheduled for April 17, 2014.
As part of her guilty plea, Peart admitted that beginning in or around March 2012 and continuing through, in or around November 2013, she was a member of a conspiracy to fraudulently enrich herself by keeping victims’ money for her own benefit without paying any lottery winnings. Peart acknowledged that a co-conspirator, believed to be located in Canada, mailed letters to elderly victims in the United States falsely informing the victims that they had won more than a million dollars in a lottery. These letters purported to be from an actual sweepstakes company in the United States.
Peart also admitted that as part of the conspiracy, victims were told that they must make a payment of several thousand dollars in order to collect their purported lottery winnings. The victims were told to send their payments to Peart and others. Peart acknowledged that she received victims’ funds, kept 10 percent of the money received from victims and then sent the rest to another member of the conspiracy. Victims never received any lottery winnings.Assistant Attorney General Delery commended the investigative efforts of the U.S. Postal Inspection Service, Homeland Security Investigations and the U.S. Marshals Service. The case is being prosecuted by Assistant Director Jeffrey Steger and Trial Attorney Kathryn Drenning with the Department of Justice’s Civil Division, Consumer Protection Branch.
Federal Search Warrant Reveals Beneficiary Funds MissingRead the Press Release
PORTLAND, Ore. – Federal agents of the Social Security Administration, Office of Inspector General, Office of Investigations, working with the U.S. Attorney’s Office, obtained a search warrant for Safety Net of Oregon, a Representative Payee organization, located on SE Morrison Street. The warrant was executed on March 6, 2014.
According to the affidavit in support of the search warrant, the Social Security Administration terminated Safety Net as an Organizational Representative Payee effective April 1, 2014, following a review of Safety Net that revealed that approximately $600,000 of beneficiary funds was unaccounted for.
Prior to the execution of the warrant, the Social Security Administration began contacting each of the approximate 900 beneficiaries by telephone or letter to advise them of Safety Net’s termination as an Organizational Representative Payee. During the execution of the warrant, clients of Safety Net who arrived at the business were provided a flyer advising them of Safety Net’s termination and directing them to contact the Social Security Administration. They were also provided names of organizations that could potentially serve as Representative Payees. Employees of the local Social Security Administration field offices have been working with local disability organizations and social service agencies with the goal that all of Safety Net clients will be transitioned to a new Representative Payee as soon as possible.
The U.S. Attorney’s Office’s investigation is on-going. A search warrant is an investigative tool and not evidence of guilt. The subjects of the search warrant are presumed innocent unless and until they are proven guilty.
The U.S. Attorney’s Office urges any beneficiaries who were clients of Safety Net and who have not yet contacted the Social Security Administration, to do so immediately in order to avoid any interruption in the payment of their benefits.
Social Security hours:
Monday, Tuesday, Thursday, Friday: 9:00 AM – 3:00 PM
Wednesday 9:00 – NoonLocal Social Security Offices
SOCIAL SECURITY
194 BEVERLY DRIVE
OREGON CITY OR 97045
BUSINESS: (866) 964 4264
SOCIAL SECURITY
1538 SW YAMHILL ST
PORTLAND OR 97205
BUSINESS: (888) 632 6990SOCIAL SECURITY
17925 SE DIVISION ST
PORTLAND OR 97236
BUSINESS: (866) 331 6402SOCIAL SECURITY
1229 SE 3RD STREET SUITE 100
PENDLETON OR 97801
BUSINESS: (877) 405 0480SOCIAL SECURITY
11975 SW 2ND ST SUITE 100
BEAVERTON OR 97005
BUSINESS: (866) 964 2036SOCIAL SECURITY
1750 MCGILCHRIST ST SE STE 110
SALEM OR 97302
BUSINESS: (866) 593 1559Representative Payee Organizations
Share and Care
13855 Pacific Highway
Tigard, OR 97281
503-684-8882
*If you cannot get to the Tigard location, call them and the payee will arrange to meet you.
--------------------------------------------------------------------Action Payee Services Inc.
503-352-5349
* Contact by phone and the payee will arrange to meet you.
----------------------------------------------------------------------On the Budget
971-227-6294* Contact by phone and the payee will arrange to meet you.
Federal Jury Finds Missouri Woman Guilty of Health Care FraudRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that on March 19, 2014, Tisa V. Vaughn, 49, of Florissant, Missouri, was found guilty in United States District Court in East St. Louis, Illinois, on an indictment charging that she engaged in a scheme to commit health care fraud. Sentencing is set for July 11, 2014. The charge carries a maximum penalty of 10 years in prison, a $250,000 fine, and up to 3 years of supervised release.
Vaughn was the personal assistant for her sister, a Medicaid recipient, who resides in East St. Louis. Evidence at trial showed that Vaughn billed for hours of care when she was either not caring for her sister or when her sister was actually in the hospital. Furthermore, testimony indicated that the sisters split the payments that Vaughn billed and received from the Home Services Program for the State of Illinois.
“Nationwide, the biggest fraud problem in the Medicaid program has been these personal assistant programs which represent the number one fraud complaint to state Medicaid fraud units. Especially vulnerable to fraud are programs, such as the one implemented in Illinois, that allows the Medicaid recipient to control the selection and payment of personal care attendants. In most cases, the personal care assistant is a relative or family friend, who often is a ghost employee. In a typical fraud scenario, the scam payments made by the State of Illinois are split between the Medicaid recipient and the ghost employee. By prosecuting these frauds, I hope to get more accountability into the programs and to preserve these funds for deserving people who really do benefit from the assistance.” said United States Attorney Wigginton.
The investigation was conducted by the U.S. Department of Health and Human Services’ Office of Inspector General and the Illinois State Police’s Medicaid Fraud Control Bureau. The case was tried by Special Assistant U.S. Attorney Stuart J. Zander and Assistant U.S. Attorney Liam Coonan. The lead prosecutor for the case is Assistant U.S. Attorney Michael J. Quinley.
If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of Health and Human Services, Office of Inspector General or call 800.447.8477.
Federal Grand Jury Indicts Woonsocket Resident for Allegedly Trafficking Fentanyl, Heroin, Morphine & CodeineRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned a five-count indictment charging Alfredo Balestier-Sanchez, aka Negro, 32, of Woonsocket, with trafficking heroin, fentanyl, morphine and codeine, announced United States Attorney Peter F. Neronha, Woonsocket Police Chief Thomas S. Carey and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England field division.
Sanchez was arrested March 4, 2013, by members of the Woonsocket Police Department and the RI DEA Drug Task Force following a one month investigation into Sanchez’s alleged drug trafficking activities. According to court documents, it is alleged that several undercover drug purchases from Sanchez and a court authorized search of his Woonsocket residence resulted in the seizure of numerous packets containing various mixtures of fentanyl, heroin, morphine and codeine.
The indictment charges Sanchez with two counts of distribution of fentanyl; one count of distribution of a mixture containing heroin and fentanyl; one count of possession with the intent to distribute a mixture containing heroin and fentanyl; and one count of distribution of a mixture containing heroin, morphine and codeine.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, Sanchez faces statutory sentences of up to 20 years in federal prison followed by 3 years to lifetime supervised release and a fine of up to $1,000,000 on each of the 5 charges contained in the indictment.
An arraignment date has not yet been scheduled for Sanchez who has been detained in federal custody since his arrest.
The DEA Drug Task Force is comprised of law enforcement agents and officers from the DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Pawtucket, Providence, South Kingstown, Warwick and Woonsocket Police Departments.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Federal Grand Jury Indicts Former International Theatrical and Stage Employee Union Official for Allegedly Embezzling More Than $74,000 in Benefits & Union FundsRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence, R.I., on Wednesday returned a thirteen-count indictment charging John J. Brennan, 48, of Everett, Mass., a former Secretary Treasurer of Local 23 of the International Alliance of Theatrical Stage Employees (IATSE) in Rhode Island, with allegedly embezzling more than $74,000 in union and union employee benefit funds.
The indictment, which charges Brennan with three counts of embezzlement from a union fund, three counts of embezzlement from an employee benefit plan and seven counts of mail fraud was announced by United States Attorney Peter F. Neronha; Mark Neylon, District Director for the Office of Labor Management Standards, Boston-Buffalo District Office; Cheryl Garcia, Acting Special Agent in Charge of the New York Region for the Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; and Susan Hensley, Regional Director of the Employee Benefits Security Administration, Boston Regional Office.
According to the indictment, it is alleged that, while serving as administrator of IATSE’s Local 23 Health & Welfare fund between January 2006 and December 2011, Brennan embezzled $33,546.82 in union funds and $40,510.38 in benefit funds. The indictment alleges that Brennan deposited most of the money into a secret bank account unbeknownst to Local 23 officials and that he allegedly deposited some of the embezzled funds into his own personal bank accounts.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. John Brennan has been summoned to appear on March 28, 2014, for arraignment in U.S. District Court in Providence on a date yet to be determined.
If convicted, Brennan faces statutory penalties of up to 20 years in federal prison to be followed by up to 3 years supervised release and a fine of up to $250,000 on each charge of mail fraud; and up to 5 years in federal prison to be followed by up to 3 years supervised release and a fine of up to $250,000 on each charge of embezzlement from a union fund and embezzlement from an employee benefit plan.
The case is being prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
The matter was investigated by the United States Attorney’s Office and the U.S. Department of Labor’s Office of Labor Management Standards and Employee Benefits Security Administration, and Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Cumberland Resident Admits to Armed Bank Robberies in Cumberland and CranstonRead the Press Release
PROVIDENCE, R.I. – Joseph G. Petrarca, 50, of Cumberland, R.I., faces statutory penalties of up to 45 years in federal prison after pleading guilty in U.S. District Court in Providence to robbing two banks within twenty days while claiming to be armed with a gun, announced United States Attorney Peter F. Neronha, Cranston Acting Police Chief Rhode Island State Police Captain Kevin M. Barry, Cumberland Police Chief John R. Desmarais and Vincent B. Lisi, Special Agent in Charge of the Boston Field Office of the FBI.
Appearing before U.S. District Court Chief Judge William E. Smith, Petrarca admitted to the court that he robbed a Citizens Bank branch office in Cumberland on December 26, 2012, of $1,764 and that he robbed a Washington Trust Company branch office in Cranston of $9,595 on January 15, 2013. In both instances, Petrarca handed bank tellers a threatening note claiming that he was armed with a gun.
According to information presented to the court, a note handed to a teller at the Washington Trust Company by Petrarca read in part, “I have a gun and I will shoot you.” It further warned, “Watch my hand it has a gun in it.” The teller told police that the robber displayed the handle of a gun which he pulled out from a satchel or briefcase he was holding. Petrarca also handed a note to a teller during the robbery of the Citizens Bank branch office claiming that he was armed. However, no gun was displayed.
According to information presented to the court, on January 19, 2013, based upon information developed in their investigation, Cranston police obtained a warrant to arrest Petrarca for the Washington Trust Company robbery. The following day, officers watched Petrarca as he drove away from his Cumberland home. He was arrested a short time later as he exited Route 95 in Providence.
Following Petrarca’s arrest, Cumberland police officers conducted a court authorized search of Petrarca’s home where they seized jeans, identical to those worn by in the Citizens Bank robbery, along with sweatshirts matching those worn in both bank robberies. Fingerless gloves similar to those used in the Citizens Bank robbery and a knit hat similar to that worn in the Washington Trust robbery were seized from Petrarca’s car. A piece of red stained floor carpeting from the vehicle matched the dye used in bank dye packs.
According to a plea agreement filed in this matter, the government will recommend to the court that Petrarca, who pleaded guilty to two counts of armed bank robbery, be sentenced to up to12 years in federal prison when he is sentenced on June 6, 2014.
The case, which was charged by retired Assistant U.S. Attorney Kenneth P. Madden, is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The FBI assisted Cranston and Cumberland Police in the investigation of this matter.###
To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]Connecticut Man Arrested, Charged with Trying to Engage in Sex with MinorRead the Press Release
BOSTON – A Connecticut man was arrested yesterday after driving to Watertown to allegedly meet with a woman who posted an ad on Craigslist, seeking a male that might be interested in a relationship with her minor daughter. The Craigslist advertisement was placed by undercover Homeland Security Investigation agents.
Paul R. Hinkel, 56, from Chester, Conn., was charged via criminal complaint that he persuaded, induced, enticed or coerced a minor to engage in sexual activity.
The criminal complaint alleges that in February 2014, undercover federal agents placed an ad on Craigslist using the name “Lisa Richards” and seeking a male that might be interested in a relationship involving her daughter. Hinkel responded to the advertisement, and engaged in e-mail communications with undercover agents regarding the fictional minor daughter and the sexual activities that he would engage in with her. On March 19, Hinkel traveled from his home in Connecticut to an apartment in Watertown to meet the fictional minor daughter. He carried a bag to the door with him, which agents later discovered contained sexual paraphernalia, men’s cologne and a stuffed animal. Hinkel was arrested and taken into custody. He remains in custody pending a detention hearing in U.S. District Court on March 24.
United States Attorney Carmen M. Ortiz said, “We vigorously pursue defendants who intend to use the Internet to evade detection and to infringe on the protections of children.”
“I am very proud of my agents’ tireless work in targeting online predators, and I would like to commend our outstanding partners in the Massachusetts and Connecticut State Police Departments,” said Bruce Foucart, Special Agent in Charge of Homeland Security Investigations in Boston. “The Internet is a necessity of modern life; however, we will continue to aggressively pursue those who use it to prey on the defenseless.”
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274, and messages will be promptly returned.
U.S. Attorney Ortiz and SAC Foucart made the announcement today. The Watertown Police Department and Massachusetts State Police assisted with Hinkel’s arrest. The case is being prosecuted by Eve A. Piemonte Stacey of Ortiz’s Major Crimes Unit.
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 Criminal Division=s CEOS, 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/.
Computer Technician Sentenced to Ten Years in Prison for Downloading Child Pornography at WorkRead the Press Release
OAKLAND – David Busby was sentenced today to ten years in prison for downloading and viewing child pornography, announced United States Attorney Melinda Haag, Deputy Inspector General for Investigations at the U.S. Department of Energy John R. Hartman, and FBI Special Agent in Charge David J. Johnson.
On Sept. 19, 2013, after a three-day trial, a jury convicted Busby of possessing and accessing with the intent to view child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2). Evidence at trial showed that on April 20, 2010, a network security analyst detected internet traffic indicative of child pornography on the National Energy Research Scientific Computing Center (NERSC) computer network. The internet traffic was isolated to a single laptop computer being used by Busby.
Busby, a registered sex offender based on a prior conviction, was a computer support employee at the Lawrence Berkeley National Laboratory (LBL), and he worked part-time at NERSC, which is affiliated with LBL. Busby made two statements to law enforcement officers shortly after the April 20, 2010 incident, ultimately admitting that he did download child pornography to two of his work computers. Busby said he would store the child pornography for a period of time and then delete the images. A forensic examination of two of Busby’s computers recovered approximately 1,400 images of child pornography that had been deleted. At trial, Busby’s defense claimed that he accidentally downloaded the child pornography onto his computers while trying to access legal child modeling sites.
Busby, 61, of Richmond, was indicted by a federal grand jury in a superseding indictment on July 9, 2013. Busby was remanded into custody following his conviction at trial. The sentence was handed down by the Honorable Saundra B. Armstrong, United States District Court Judge. Judge Armstrong also sentenced the defendant to a ten-year period of supervised release.
Brian C. Lewis is the Assistant U.S. Attorney who is prosecuting this case with the assistance of Janice Pagsanjan and Patty Lau. This prosecution is the result of an investigation by the Department of Energy Office of Inspector General, University of California Police Department, and the Federal Bureau of Investigation.
(Busby superseding indictment )
Columbus Man Pleads Guilty to Using Official Emergency Vehicle in Furtherance of Alien Smuggling ConspiracyRead the Press Release
ALBUQUERQUE – Samuel Elliott, 30, of Columbus, N.M., pleaded guilty this afternoon in federal court in Las Cruces, N.M., to conspiracy to transport illegal aliens.
Samuel Elliott and his brother Robert Steven Elliott, 28, also of Columbus, were arrested on Sept. 11, 2013, on a criminal complaint charging them with conspiracy to transport illegal aliens. According to the criminal complaint, on Aug. 31, 2013, Border Patrol Agents from the U.S. Border Patrol station in Deming, N.M., went to a trailer in Columbus after receiving a tip. At the trailer, the agents encountered a group of individuals who admitted being Mexican nationals illegally present in the United States.
On Sept. 1, 2013, the Border Patrol initiated an investigation to determine how and by whom the illegal aliens were smuggled into the United States. The investigation revealed that the aliens were smuggled into the United States on Aug. 28, 2013. Once the aliens were in the United States, Samuel Elliott picked up the aliens and transported them to the trailer in Columbus where they met Robert Elliott. Samuel Elliott and Robert Elliott instructed the aliens to stay in the trailer until the brothers were ready to smuggle them past the Border Patrol checkpoint and then transport them to Phoenix, Ariz.
On Sept. 4, 2013, Samuel Elliott used an emergency vehicle belonging to the Columbus Fire Department to transport the illegal aliens through the Border Patrol checkpoint on New Mexico Road 11. As he approached the checkpoint, Samuel Elliott activated the vehicle’s emergency sirens to avoid inspection at the checkpoint and drove through the checkpoint. Samuel Elliott met up with Robert Elliott shortly thereafter with the intention of transferring the aliens to Robert so he could transport them to Phoenix. Their plans were disrupted by agents who had been following Samuel Elliott at a distance.
During today’s proceedings, Samuel Elliot pled guilty to participating in the alien transportation conspiracy. His brother Robert Elliott previously entered a guilty plea to the conspiracy on Jan. 22, 2014.
At their sentencing hearings, which have yet to be scheduled, Samuel Elliott and Robert Elliott each face a maximum penalty of ten years in prison. Both men are in federal custody pending their sentencing hearings.
This case was investigated by agents at the Deming Station of the U.S. Border Patrol and is being prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Columbia Man Indicted for Sex Trafficking Two VictimsRead the Press Release
Human Trafficking Rescue Project
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Columbia, Mo., man has been indicted by a federal grand jury on charges related to the sex trafficking of two victims, one of them a minor.
Kenyata D. Miles, 33, of Columbia, was charged in a two-count indictment returned by a federal grand jury in Jefferson City, Mo., on Wednesday, March 19, 2014.
The federal indictment indictment charges Miles with one count of sex trafficking and one count of the attempted sex trafficking of a child. Miles allegedly used a victim (identified in the indictment as “K.M.”) knowing and in reckless disregard of the fact that force, threats of force, fraud and coercion would be used to cause “K.M.” to engage in prostitution. The indictment also alleges that Miles used a second, minor victim (identified in the indictment as “EN”) knowing and in reckless disregard of the fact that “EN” was a minor and would be caused to engage in prostitution.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the FBI, the Boone County, Mo., Sheriff’s Department and the Osage Beach, Mo., Police Department in conjunction with the Human Trafficking Rescue Project.Collin County Man Sentenced in Foreclosure Rescue/Drug Distribution SchemeRead the Press Release
Department of Justice
Office of Public AffairsSHERMAN, Texas – A 34-year-old McKinney, Texas man has been sentenced to federal prison in connection with a combination foreclosure rescue and drug distribution scheme in the Eastern District of Texas, announced U.S. Attorney John M. Bales.
Jarrod Williams pleaded guilty on Aug. 21, 2013 to conspiracy to commit mail and wire fraud and was sentenced to 57 months in federal prison today by U.S. District Judge Marcia Crone. Williams was also ordered to pay over $1.4 million in restitution.According to information presented in court, from February 2007 to June 2012, Jarrod Williams, Julius Williams, and Charles Williams, controlled and operated Applied Investment Strategies, Inc. (AIS), which marketed itself as a foreclosure rescue service offering assistance to homeowners at risk of foreclosure. However, once a homeowner detained AIS, the defendants fraudulently used the customer’s personal identification information to prepare and send false military orders to banks and lending institutions in order to claim relief from foreclosure under the Servicemember’s Civil Relief Act. AIS would then lease out the home and collect rental payments for AIS’ benefit. The scheme involved approximately 38 homes throughout North Texas and also extended to interfering in the repossession of automobiles. After at least one of the fraudulently-acquired properties was vacated, Charles Williams, Christopher Carter and Sean Harrell turned it into a marijuana grow operation that housed approximately 1,300 marijuana plants that were intended for distribution. A federal grand jury returned an indictment on July 11, 2012, charging the defendants with federal violations.
Charles Williams, 39, of McKinney, Christopher Carter, 34, of Leicester, England, and Sean Harrell, 38, of Dallas are each currently serving prison sentences ranging from 41 to 50 months. Julius Williams, 43, of McKinney faces up to five years in federal prison at sentencing.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Shamoil T. Shipchandler.
####Charlotte Businessman Sentenced to Four Years in Prison for Worker Fraud Visa and Related OffensesRead the Press Release
CHARLOTTE, N.C. – U.S. District Court Judge Robert J. Conrad, Jr. sentenced a Charlotte businessman today to serve 48 months in prison for worker visa fraud and related offenses, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Phani Raju Bhima Raju, 42, an Indian National residing in Charlotte, pleaded guilty in March 2013 to federal charges ranging from conspiracy to violate U.S. laws by filing fraudulent immigration documents to money laundering conspiracy, for his participation in a fraudulent scheme to obtain false H-1B immigration visas for foreign workers. The H-1B visa program allows U.S. employers to temporarily employ foreign workers in designated specialty occupations. In addition to the prison term, Raju will serve one year under court supervision and is subject to deportation from the United States.
Brock D. Nicholson, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas and Richard L. Walker, Special Agent in Charge for the Atlanta, Georgia Region of the U.S. Department of Labor’s Office of Inspector General (DOL-OIG), Office of Racketeering and Fraud Investigations join U.S. Attorney Tompkins in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from 2006 to November 2012, Raju conspired with Sarma G. M. Pingali, 64, and Bubala Elangovan, 33, both of Charlotte, to carry out a fraudulent scheme by submitting materially false documents to obtain H-1B immigration visas for foreign nationals seeking employment in the U.S. During the relevant time, Raju was the president of iFuturistics, a Delaware company headquartered in Pineville, N.C. Court records show that Raju and his conspirators falsely represented to the U.S. Department of Labor (“DOL”) and the Department of Homeland Security’s U.S. Citizenship and Immigration Services (“USCIS”) that iFuturistics was hiring H-1B visa holders to work directly for the company. Contrary to statements made on the submitted forms, court records show that once the applicants who were granted H-1B visas arrived in the U.S., they were assigned to work with various companies throughout the country. In fact, as court records show, iFuturistics had entered into lucrative contracts with staffing agencies prior to submitting the fraudulent visa applications. Court documents show that as a result of Raju’s illegal visa scheme iFuturistics received $13.2 million as payment from staffing companies in the U.S.
According to court documents and statements made in court, Raju admitted that in addition to submitting false applications, he and his conspirators engaged in an illegal scheme to recruit, solicit, entice and hire individuals outside the U.S. to apply for H-1B visas and to obtain work in the U.S. Court records show that Raju gave the H-1B visa applicants a “cheat sheet” of questions and answers to assist them during their interview process to obtain the H-1B visas.
Court records indicate that, once the H-1B visa workers were in the U.S., Raju at times failed to find them employment. On those occasions, court records indicate, these workers were “benched” in the U.S. while waiting for another job assignment, and during that time, and contrary to the salary claims made in the application forms, these workers received little or no pay from iFuturistics. On one occasion, court documents show, a foreign national H-1B visa holder had paid $2,500 to iFuturistics as a security deposit for processing her H-1B visa. According to the contract between iFuturistics and the employee, the employee was promised an annual salary of $60,000 and had agreed to the company’s request to market her services for employment throughout the U.S. In the end, iFuturistics never provided the worker with any work assignments and failed to pay her any wages, court records show.
Filed documents also indicate that during a scheduled inspection visit of the company’s Pineville offices in November 2009, Raju and his conspirators attempted to hide their fraudulent activities from law enforcement and immigration agents. In anticipation of the visit, court documents show that Raju and his conspirators had set up work stations, moved in furniture and recruited several persons to pretend to be iFuturistics workers for the duration of the inspection visit, when, in fact, the office space prior to the site visit had been empty and unoccupied. When law enforcement and immigration agents returned to the company’s offices a month after the site visit, the office space was dark and unoccupied, as it had been prior to the planned inspection.
Raju has been in federal custody since December 2012 and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Pingali and Elangovan each pleaded guilty to worker visa fraud and related offenses and face prison terms ranging from five to 10 years and fines of $250,000 per charged offense. The defendants are currently on bond and await sentencing.
The investigation is handled by ICE-HSI and DOL-OIG. The prosecution is handled by Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte.
Boston Woman Charged in Bank Fraud SchemeRead the Press Release
BOSTON – A Boston woman has been charged with making fraudulent withdrawals from accounts in other people’s names at Citizens Bank branches throughout Massachusetts.
On March 19, Kimberly B. Gomez, 53, was indicted with bank fraud. According to the indictment, beginning in 2010, Gomez and others participated in a scheme to obtain personal identification and account information for Citizens Bank customers and to use that information to withdraw money from these customers’ accounts. A participant in the scheme obtained, from Citizens Bank, the names of customers with high savings account balances, along with their home addresses, dates of birth, and account numbers. Another participant took Gomez’s picture and used it, along with the information from Citizens Bank, to obtain fake ID’s with the names and addresses of Citizens’ customers. Gomez then used these fake IDs to make the fraudulent withdrawals from Citizens Bank.
The indictment alleges that Gomez was able to withdraw more than $67,000 from accounts belonging to three different Citizens customers. She tried, unsuccessfully, to withdraw another $13,000.
If convicted, Gomez faces a statutory maximum penalty of 30 years in prison and five years of supervised release.
United States Attorney Carmen M. Ortiz and Thomas P. Baker, Acting Special Agent in Charge of the U.S. Secret Service in Boston, made the announcement today. Citizens Bank cooperated with the investigation. The case is being prosecuted by Assistant United States Attorney Adam J. Bookbinder of Ortiz’s Cybercrime Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.