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30 April 2014
Madison Firearms Dealer SentencedRead the Press Release
TALLAHASSEE, FLORIDA– Chad Eric Jones, 43, of Madison, Florida, was sentenced on April 29, 2014, to one year in federal prison by U.S. District Court Judge Robert Hinkle following acceptance of his guilty plea in November of last year. Jones, a federally licensed firearms dealer, pleaded guilty to multiple counts of selling firearms to a convicted felon and a single count of selling a handgun to a person under 21 years of age.
In September of last year, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Madison County Sheriff’s Office and the Madison Police Department, executed a search warrant at Jones’ residence and place of business, Gunslingers Pawn and Gun on Duval Street in Madison.
While executing the search warrant at Gunslingers Pawn and Gun, agents seized 67 firearms not listed in the Gunslingers acquisition and disposition book. Jones ultimately forfeited all of these firearms to the government and surrendered his federal firearms license.
During the course of the investigation, agents obtained an audio recording in which Jones admitted that he intentionally kept certain firearms out of his acquisition and disposition book to conceal the fact that he was selling firearms to prohibited persons. If a firearm was not in his acquisition and disposition book, Jones believed that government agents would be unable to determine that he had sold the firearm to a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Madison County Sheriff’s Office, and the Madison Police Department. The case was prosecuted by Assistant United States Attorney Jason S. Beaton.Los Angeles Woman Pleads Guilty to Conspiracy and Identity TheftRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Doree McGee, 39, of Los Angeles, California, pleaded guilty to conspiracy and aggravated identity theft charges before U.S. Magistrate Judge Marian W. Payson. The charges carry a mandatory minimum penalty of two years in prison, a maximum of 32 years, a fine of $250,000, or both.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that in 2010 and 2011, McGee conspired with Cassandra Montrevel, and others, to defraud Bank of America. The scheme involved the defendants posing as actual Bank of America account holders. They used fake driver’s licenses and other means of identification, and made cash withdrawals from actual customer accounts. Traveling from California to cities around the nation, McGee and others defrauded Bank of America of more than $325,000. The scheme came to an end on March 18, 2011, when Montrevel was arrested in a bank branch in Irondequoit, N.Y. Montrevel was convicted and sentenced to 70 months in prison for her role in the scheme.
The plea is the culmination of an investigation on the part of the United States Secret Service, under the direction of Special Agent in Charge Tracy Gast, the Monroe County Sheriff's Office, under the direction of Sheriff Patrick O'Flynn, the Gates Police Department, under the direction of Chief James VanBrederode, the Irondequoit Police Department, under the direction of Chief Richard V. Tantalo, and the Batavia Police Department under the direction of Chief Shawn Heubusch.
A sentencing date will be scheduled at a later date.Local Couple Sentenced for Selling Stolen MerchandiseRead the Press Release
St. Louis, MO – CHRISTIAN OUNANIAN and GINA VOGEL were sentenced to 63 and 42 months in prison, respectively on charges of selling merchandise stolen from Walgreens and CVS drug stores. In addition to the prison sentences, they were ordered to pay restitution of $1,008,890.
According to court documents, Ounanian owned Xtra Wholesale, located on Southwest Avenue, St. Louis City. Between 2007 and September 2012, Ounanian and Vogel hired people to steal over-the-counter drugs and other items from Walgreens and CVS stores. The shoplifters were paid for the items and Ounanian and Vogel conspired to resell the items.
Christian Ounanian and Gina Vogel, St. Louis City, pled guilty in December to one felony count of conspiracy to transmit stolen goods and one felony count of interstate transportation of stolen goods. Christian Ounanian appeared today before United States District Judge Stephen N. Limbaugh, Jr. Gina Vogel was sentenced in March.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Anthony Franks handled the case for the U.S. Attorney’s Office.
Local Attorney Sentenced for Theft from ClientsRead the Press Release
Memphis, TN – Attorney Sharon Anderson, 51, of Oakland, Tennessee, was sentenced to twenty months in federal prison yesterday after pleading guilty in September 2013 to theft from her clients’ trust accounts, announced U.S. Attorney for the Western District of Tennessee, Edward L. Stanton III.
From August 2010 to September 2011, Anderson stole nearly $200,000 from two clients, soliciting them to make what they believed were four separate short-term “hard money” loans for investors purchasing properties and awaiting conventional financing from banks. Anderson provided the victims with fraudulent documents, including settlement statements, notes, and deeds of trust, creating the impression that the victims had issued valid loans for true sales of properties by actual buyers, and that the victims had secured interests in the properties. In one instance, Anderson used the identity of another client as the supposed “buyer” for these nonexistent loans and victimized this additional client by apparently forging the client’s name on the loan documents. In reality, Anderson herself already owned each of the properties for which the victims believed they had made loans. There were no actual loans, no sales, and no buyers. Instead, Anderson used the victims’ money to purchase a $499,500 condominium at the Caribe Resort in Orange Beach, Alabama and, apparently, a $725,000 waterfront home in Orange Beach as well as a second condominium at the Caribe Resort.
Over the course of the following three years, Anderson engaged in an ongoing series of communications lying to the victims to lead them to believe that the “buyers” to whom they issued loans were finally going to obtain conventional financing and pay the victims. Anderson told the victims at various times that refinances were “in process,” that she had learned that “a couple of credit glitches” were “being addressed,” and that the property “was sold and is being refinanced.” All of these statements were lies because there were no sales, no buyers, and no loans to be refinanced. Anderson made sporadic interest payments to the victims during this time. As the victims followed up to obtain the payments, Anderson responded with such statements as “Take a breath!!” and made explanations for late payments or nonpayments such as, “I’m out of town and recovering from the flu,” “I didn’t listen to my voicemail at the office on Friday,” “our computers have been on the blink all morning,” I have been tied up all day in closings,” and “[m]y husband . . . is 200 miles out at sea.”
Each of the victims independently caught on to Anderson’s fraud when they checked the website for the register of deeds and realized they had no secured interests in the properties for which they had made loans. After the first victim threatened litigation and a report to the board of professional responsibility, Anderson paid the victim off by stealing additional money from the client trust account for the payoff. After the second victim caught Anderson, they reached an agreement that Anderson would give the victim a second mortgage on her residence at Anderson Farms in Fayette County and that Anderson would sell assets to pay off the loans. Even after the agreement, Anderson continued lying to the victim, concealing her $435,000 sale of one of the Caribe Resort condominiums in July 2013. Finally, after Anderson gave the victim a $26,744 check in November 2013 that bounced, Anderson agreed to satisfy the debt to avoid reporting of the bounced check. The victim accepted a reduced settlement from Anderson to avoid being left at a total loss.
At the sentencing hearing, Anderson asked United States District Court Judge Samuel H. Mays to consider, among other things, her role in her family, her business success, and her role in the Fayette County community, hosting and paying for events such as a Wounded Warriors event at Anderson Farms. The government noted that Anderson’s thefts were not based on any emergency need, but rather for greed. Anderson owns numerous properties, and used the money she stole to buy more. In addition, her failure to repay the victims was not apparently the result of an inability to make repayment but simply because the defendant did not want to. She had the means to host charitable events and owned multiple properties and a yacht.
One victim made a statement at the hearing reflecting the stress Anderson imposed on her. Fifty thousand dollars of the money Anderson stole from the victim came from the victim’s mother, who had gone into a nursing home while the victim was seeking repayment. Even after the victim told Anderson that fifty thousand dollars of the money was her mother’s, and that her mother had entered a nursing home, Anderson did not repay the loss until more than fifteen months later and after the victim threatened to report the bounced check. The victim stated she agreed to a partial repayment because she did not want to risk getting no payment at all. The victim added that she did not believe Anderson ever intended to repay her and that if Anderson wanted to do the right thing, she would have paid the loan in full. The victim expressed the hope that Anderson never be allowed to use her position to harm anyone else in the future.
Anderson’s attorney stated at the sentencing hearing that Anderson has agreed with the Tennessee Board of Professional Responsibility to be disbarred from the practice of law.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney John Fabian represented the government.Konn Convicted of Child Pornography OffensesRead the Press Release
Retired State Worker’s Child Pornography Collection Included
Thousands of Images and Over 800 MoviesALBANY, NEW YORK – Today, a federal jury trial that began Monday ended in the conviction of STEPHEN J. KONN, 63, of Clifton Park, New York, of the felony offenses of distribution of child pornography, receipt of child pornography, and possession of child pornography, announced United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.
KONN faces a statutory mandatory minimum sentence of imprisonment for five years and a maximum sentence of imprisonment for twenty years for each of the distribution and receipt convictions, and a maximum sentence of imprisonment for ten years for the possession conviction, as well as a lifetime term of supervised release, a maximum fine of $250,000, and mandatory registration as a sex offender. KONN, who was remanded, will be sentenced in Albany on September 4, 2014 by United States District Judge Mae A. D’Agostino.
The evidence presented at trial showed that KONN, a retired employee from the New York State Department of Taxation and Finance, used a peer-to-peer file trading program to distribute child pornography to an undercover FBI agent via the Internet. A subsequent search of KONN’s Clifton Park residence uncovered a computer containing over 4,000 images and 800 videos of child pornography, and evidence that KONN had been trading child pornography over the Internet for years.
This prosecution resulted from an investigation conducted by the Federal Bureau of Investigation, Albany Division. The case was prosecuted by Assistant United States Attorney Wayne A. Myers.
Killeen Brothers Sentenced to Lengthy Federal Prison Terms for Cocaine DistributionRead the Press Release
In Waco, 30-year-old Christopher Andrew and 32–year-old Cornelius Tywarren Wilson were sentenced to 35 years and 30 years in federal prison, respectively, for their roles in a cocaine distribution operation based in Killeen, Texas, announced United States Attorney Robert Pitman, Federal Bureau of Investigation Special Agent in Charge Christopher H. Combs, San Antonio Division and Killeen Police Chief Dennis M. Baldwin.
In addition to the prison terms, United States District Judge Walter S. Smith, Jr. ordered that the brothers pay a fine—Chris, $2000; Cornelius, $1,500—and be placed under supervised release for a period of ten years after completing their respective prison terms.
On March 10, 2014, a federal jury in Waco found Christopher Wilson, Cornelius Wilson and 29–year-old Bryant Keith Pressley guilty of multiple drug charges. The jury also found Cornelius Wilson guilty of possession of a Ruger handgun during a drug trafficking crime on May 14, 2013. Presley is scheduled to be sentenced on May 28, 2014.
Evidence presented during trial revealed that from April 2011 to May 2013, the organization led by the Wilson brothers was responsible for the distribution of close to 30 kilograms of cocaine and “crack” cocaine in Killeen and the surrounding area.
The Wilson brothers and Presley were among eight Killeen residents indicted and convicted of federal drug charges in connection with this cocaine distribution operation. The other five defendants--39-year-old Jamel Azar Singleton, 31–year-old Jason Eugene Jackson, 31-year-old Katrie Deshone Simpson, 39–year-old Michael Anthony Mango and 34–year-old Kevin Elthonda Lee--entered guilty pleas prior to jury selection and received federal prison sentences ranging from 18 months to 151 months.
This case resulted from an investigation by the Federal Bureau of Investigation (FBI) together with the Drug Enforcement Administration and the Killeen Police Department. Assistant United States Attorney Mark Frazier and former Assistant United States Attorney Sean Condron are prosecuting this case on behalf of the Government.
KC Man Indicted for Maryville Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was indicted by a federal grand jury today for robbing a Maryville, Mo., bank.
Ronald David Brown, Jr., 39, of Kansas City, was charged in a single-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Brown stole $1,480 from Bank Midwest, 1016 S. Main St., Maryville, on Nov. 13, 2013.
Dickinson cautioned that the charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge 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 Christina Y. Tabor. It was investigated by the FBI and the Maryville, Mo., Police Department.Illinois Residents Charged in Identity Theft SchemeRead the Press Release
PITTSBURGH - Two Illinois residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy, using unauthorized access device in aggregate of $1,000, possessing device- making equipment, possessing 15 or more access devices, and aggravated identity theft, United States Attorney David J. Hickton announced today.
The six-count superseding indictment, returned on April 29, named Joel M. Cosey, 25, of Chicago, Illinois, and Monique S. Morris, 33, of Bolingbrook, Illinois.
According to the indictment, Cosey was charged with conspiracy, possessing device- making equipment, possessing 15 or more access devices, aggravated identity theft, and two counts of using unauthorized access device in aggregate of $1,000 on or about Aug. 9, 2013.
According to the indictment, Morris was charged with conspiracy and two counts of using unauthorized access device in aggregate of $1,000 on or about Aug. 9, 2013.
The law provides for a maximum total sentence of 52 years in prison, a fine of $1,500,000 or both for Cosey. The law provides for a maximum total sentence of 25 years in prison, a fine of $750,000 or both for Morris. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Hogsett Announces Kokomo Man’s Petition to Plead Guilty to Distribution of Child PornographyRead the Press Release
Prosecution represents more results in U.S. Attorney’s ongoing "Operation Community Watch"
INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today that Brandon Tooley, age 32, of Kokomo, has been charged by information with one count of distribution of sexually explicit material involving minors. Tooley has filed a petition to plead guilty, along with entering into a plea agreement and stipulated factual basis for the offense. This prosecution comes as the U.S. Attorney’s Office has recommitted to Operation Community Watch, a federal effort which aims to reduce the abuse of Hoosier children through innovative investigative techniques and aggressive prosecution.
“The type of behavior alleged in this case exploits children and will not be tolerated by federal law enforcement,” Hogsett said. “That is why we launched Operation Community Watch last year – to protect Hoosier families and send a message to criminals that they cannot hide online.”
The information alleges that between on or about August 1, 2013 and on or about October 7, 2013, Tooley sent emails to others containing visual depictions of minors engaged in sexually explicit conduct. Court documents indicate that the government has filed a forfeiture allegation identifying computer equipment used in the offense that the government will seek to seize from Tooley if he is convicted.
According to Assistant U.S. Attorney MaryAnn T. Mindrum, who is prosecuting the case for the government, Tooley faces no less than five and up to twenty years in federal prison if the Court accepts a guilty plea. Federal law also mandates that individuals convicted of child exploitation pay restitution to their victims. In addition, Tooley faces a sentence of up to lifetime supervised release, and must comply with state and federal requirements as a registered sexual offender.
This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he launched "Operation Community Watch," which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, those efforts were facilitated by the Department of Homeland Security, Homeland Security Investigations (HSI).
"The sexual exploitation of children is abhorrent and is one of the most disturbing crimes we investigate at HSI,” said Gary Hartwig, special agent in charge of HSI Chicago. "Once a pornographic image of a child is shared online, it multiplies and is virtually impossible to remove. Protecting our youth in the digital age requires us all to be vigilant."
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Hogsett pointed out that in the last Project Safe Childhood reporting year, the Office prosecuted 52 defendants, an increase of 37% over the prior year, and 49 defendants were convicted and sentenced. These are all-time records for the Office.
The greatest measure of the PSC program's impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last two years, the U.S. Attorney's Office successfully identified more than 120 child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An information or indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Hogsett Announces Child Pornography Charges Against Westfield ManRead the Press Release
Pornography allegations against volunteer wrestling coach
INDIANAPOLIS - Joseph H. Hogsett, the United States Attorney, announced today federal child pornography charges against Christopher Rennard, 28, of Westfield. Rennard serves as a volunteer wrestling coach at Westfield High School and faces charges including, two counts of shipping or transporting by means of computer visual depictions of minors engaged in sexually explicit conduct, as well as possessing and distributing child pornography.
“When the most vulnerable of our citizens are victimized, my office will aggressively do everything in its power to protect them,” said Hogsett. “Child predators around the state are on notice; we will find you, investigate you and prosecute you with the full force of federal law.”
According to the criminal complaint affidavit, a report was submitted to the Cyber Tip Line by the National Center for Missing and Exploited Children. The report was submitted by Dropbox, Inc. and indicated that a user on their online data storage service had uploaded and stored files that contained child pornography between January 15-27, 2014. Investigators determined Rennard was the subscriber and traced the IP address to his residence in Westfield.
A federal search warrant was issued and served on Rennard’s residence on April 17, 2014 by special agents of Homeland Security Investigations and task force officers of the Hamilton County Metropolitan Child Exploitation Task Force. The affidavit alleges that Rennard was present during the search and admitted to collecting and distributing child pornography.
The affidavit further alleges Rennard would make contact with other persons interested in child pornography using an iPhone application called Omegle. Once he found someone to trade with, they would specify if they preferred boys or girls. Rennard would then post links to child pornography images and videos which could be used to access the files stored in his and other individual’s Dropbox accounts. This would make files available for viewing, downloading and copying.
According to Assistant U.S. Attorney MaryAnn Mindrum, who is prosecuting the case for the government, Rennard could face up to 20 years in prison and a $250,000.00 fine if convicted.
“Through our Operation Community Watch initiative, we have joined with state and local partners to make clear that we will not tolerate child exploitation in Indiana,” Hogsett said. “With innovation and vigilance, we are unmasking these online predators and holding them accountable for their criminal activity.”
This arrest comes one year after Hogsett announced a comprehensive crackdown on child exploitation in Indiana. In 2013, he launched "Operation Community Watch," which has allowed prosecutors and investigators to use cutting-edge techniques to identify and charge people in Hoosier communities who are engaged in the receipt and trafficking of child pornography materials. In this case, those efforts were facilitated by United States Department of Homeland Security, Homeland Security Investigations and the Hamilton County Metropolitan Child Exploitation Task Force.
This case was brought as part of Project Safe Childhood, a larger nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.
The greatest measure of the PSC program's impact, however, is the identification and rescue of child victims of sexual exploitation and abuse. Over the last two years, the U.S. Attorney's Office successfully identified hundreds of child victims, including minors in Indiana, numerous places in the United States, Canada, Switzerland, and other countries around the world.
Led nationally by United States Attorney’s' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A complaint is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
Hercules Resident Pleads Guilty to Transporting Multiple Minors Around the United States for ProstitutionRead the Press Release
SAN JOSE – Jamal Raphael Broussard pleaded guilty in federal court today, to transportation of minors for prostitution, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
In pleading guilty, Broussard admitted that beginning in the summer of 2010 and continuing at least through May 2013, he recruited and transported two minor females and caused them to engage in commercial sex acts, knowing that they were high school students younger than 18-years-old. Broussard admitted that he received the money from the minors for their engaging in these commercial sex acts as he acted as a “pimp” for these minors, providing them with clothing, giving them instructions, and advertising their services on the Internet using pictures of the minors to solicit customers. Further, Broussard admitted to having arranged or induced the travel of these minor victims, providing the minors with fake identifications and sending them from California to almost every state across the country for the express purpose of engaging in prostitution.
Broussard, 24, of Hercules, CA, was indicted by a federal Grand Jury on Oct. 16, 2013. He was charged with two counts of sex trafficking of children in violation of Title 18, United States Code Section 1591, two counts of transportation of minors for prostitution in violation of Title 18 United States Code Section 2423, and two counts of coercion and enticement for prostitution in violation of Title 18 United States Code Section 2422. Under the plea agreement, Broussard pled guilty to the two counts of transportation of minors for prostitution.
Broussard, who has been in custody since his arrest on Oct. 30, 2013, is currently being held in Santa Clara County Main Jail pending his sentencing.
Broussard’s sentencing hearing is scheduled for Aug. 13, 2014, at 9:30 a.m., before The Honorable Lucy H. Koh, United States District Court Judge, in San Jose. The maximum statutory penalty for each count in violation of 18 U.S.C. § 2423 is 30 years, with a mandatory minimum sentence of 10 years imprisonment, and a fine of $250,000, plus restitution if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Amie Rooney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Nina Williams and Tracey Andersen. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the San Jose Police Department Human Trafficking Task Force.
Anyone who suspects instances of human trafficking are encouraged to call the FBI or the Human Trafficking Hotline at 1-888-373-7888. Anonymous calls are welcome.
In addition, suspected child sexual exploitation or missing children may be reported to the National Center for Missing & Exploited Children, via its toll-free 24-hour hotline, 1-800-843-5678.
(Broussard indictment )
Haynesville Man Sentenced to 96 Months in Prison for Illegally Possessing A FirearmRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today that Ricky Nikki Beene, 38 of Haynesville, La., was sentenced Tuesday by U.S. District Judge Elizabeth E. Foote to 96 months in prison and three years of supervised release for possessing a firearm after being convicted of a felony.
According to evidence presented at the guilty plea on January 24, 2014, Haynesville Police officers responded to a call on June 1, 2012 that a man with a gun was seen at an apartment complex. The man was later identified as Beene. Police waited for Beene at his home, and when he arrived, he was driving a car matching the description of one seen at the apartment complex. The car was searched, and a loaded .380 caliber pistol, more than $900, and crack cocaine and marijuana were found.
The Haynesville Police Department, the Claiborne Parish Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert W. Gillespie Jr. is prosecuting the case as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide program to reduce violence by aggressively enforcing existing federal firearms and explosives laws.
Greensburg Man Took $172K in Deceased Aunt’s Social Security Benefit PaymentsRead the Press Release
PITTSBURGH – A Westmoreland County resident pleaded guilty in federal court to a charge of theft of government money, United States Attorney David J. Hickton announced today.
Kelly McGuire, 54, of Greensburg, Pa., pleaded guilty to one count before Senior United States District Court Judge Maurice B. Cohill.
In connection with the guilty plea, the court was advised that from Nov. 3, 1993 to Oct. 3, 2011, McGuire converted to his own use $172,375 in Social Security Title II, Old Age, Survivor’s Disability Insurance benefit payments of his aunt, Lucille McGuire, who died on Oct. 2, 1993, benefits he knew he was not entitled to receive.
Judge Cohill scheduled sentencing for Aug. 6, 2014 at 2 p.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentence, the court released McGuire on bond.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, conducted the investigation that lead to the prosecution of McGuire.
Getaway Driver in Milford Mini-Market Robberies Sentenced to 90 Months’ ImprisonmentRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced yesterday that Senior United States District Court Judge Richard P. Conaboy sentenced Daviandra Gwendolyn Green, age 28, formerly of Port Jervis, New York, to 90 months’ imprisonment for her participation in the robberies of six convenience stores between April and October 2011.
According to United States Attorney Peter J. Smith, Green previously pleaded guilty in U.S. District Court in Scranton to acting as a getaway driver when a confederate robbed (1) the Hilltop Sunoco/Extra Mart located at 238 State Route 6, Milford, Pennsylvania on April 6, 2011; (2) the Turkey Hill Minit Market, 912 Pennsylvania Avenue, Matamoras, Pennsylvania, on April 11, 2011; (3) the Hilltop Sunoco/Extra Mart located at 238 State Route 6, Milford, Pennsylvania on April 17, 2011; (4) the Citgo Mart, 220 Dolson Road, Middletown, New York on May 1, 2011; and (5) the Turkey Hill Minit Market, 912 Pennsylvania Avenue, Matamoras, Pennsylvania, on May 5, 2011. Green’s confederate brandished a weapon during the robberies.
Green and Jeremiah Anderson also entered the Hilltop Sunoco/Extra Mart, in Milford, Pennsylvania on October 5, 2011, and attempted to rob it without success. Anderson, age 29, also of Port Jervis, recently pleaded guilty in federal court to attempted robbery of that store and will be sentenced later this year.
Green’s two other confederates in the string of robberies were also convicted in federal court for their involvement in the scheme. Daniel Ortiz, age 28, of Watertown, New York, was sentenced to 80 months’ imprisonment. Simon Shomo, age 28, of Port Jervis, New York received a 70 months’ imprisonment term.
Judge Conaboy ordered that Green be placed on supervised release for three years following the service of her 90-month prison sentence.
The case was investigated by the Federal Bureau of Investigation, the Eastern Pike Regional Police Department, and the Pennsylvania State Police. Assistant United States Attorney John Gurganus prosecuted the case.
Fugitive Charged with Selling Heroin That Caused A Death in CustodyRead the Press Release
BIRMINGHAM -- A Birmingham man and federal fugitive charged in connection with a 2013 heroin overdose death in Tuscaloosa was arrested this month in Atlanta and arraigned today in U.S. District Court in Birmingham, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
PATROPIUS FOSTER, 34, had been a fugitive since a law enforcement roundup aimed at heroin dealers in north Alabama in September. Foster is the last defendant to be arrested among 49 people indicted in 2013 as part of an ongoing initiative between law enforcement and the U.S. Attorney's Office to attack the supply side of the spiraling heroin problem.
U.S. Magistrate Judge John E. Ott arraigned Foster on the charges against him and ordered he remain in custody pending trial.
The charges include that Foster distributed heroin on March 19, 2013, that resulted in the death of a 20-year-old University of Alabama student the following day. The charge of distributing heroin that results in a death carries a minimum mandatory sentence of 20 years in prison.
"The U.S. Attorney's Office is fighting the growing availability of heroin and alerting the community that the problem is here and growing ever more deadly," Vance said. "The rising use of heroin is a public health crisis. It ruins lives and is killing our children. My office prosecutes heroin dealers. Those who sell heroin that causes a death are looking at a mandatory 20-year sentence in federal prison," she said.
Another Birmingham man arrested in the September roundup also was charged with selling heroin that resulted in a death. Harold Donnell Mims, 31, pleaded guilty in February to selling heroin that caused the death of a 28-year-old Tuscaloosa resident. Mims is scheduled for sentencing May 27.
The two overdose deaths Foster and Mims are charged with causing occurred at the same Tuscaloosa apartment complex within the span of one month in 2013.
As of today, 39 of the 49 people indicted in the 2013 sweep have pled guilty and 36 have been sentenced. The sentences have ranged from probation for first-time offenders to 12 1/2 years for the dealers who qualify as career offenders under the Federal Sentencing Guidelines.
Law enforcement agencies working with DEA in the months-long investigation leading to the 2013 indictments and arrests included the Hoover, Pelham, Gardendale, Vestavia Hills, Tuscaloosa, Hueytown, Bessemer and Pleasant Grove police departments, Marshall County Drug Task Force, Gulf Coast HIDTA Task Force, Alabama Beverage Control Board, Alabama Bureau of Investigation, Jefferson and Shelby County sheriff's offices, and district attorney's offices for Jefferson, Shelby and Tuscaloosa counties and the Bessemer Cutoff. Assistant U.S. Attorney L. James Weil Jr. is prosecuting the cases.
The public is reminded that an indictment contain only charges. Defendants are presumed innocent and it is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Former Detroit Man Pleads Guilty to Selling Heroin on Charleston's East EndRead the Press Release
CHARLESTON, W.Va. – A man who sold heroin on Charleston’s East End pleaded guilty today in federal court in Charleston, announced U.S. Attorney Booth Goodwin. Darrell Shawton Collins, 36, originally from Detroit, Michigan, faces up to 20 years in prison for heroin distribution. In December of 2013, detectives with the Charleston Police Department Special Enforcement Unit used a confidential informant to buy heroin from Collins. The drug deal took place at the corner of Washington Street East and Thompson Street. At the time of the drug deal, Collins was on federal supervised release for a prior drug trafficking offense. His supervised release was revoked today following his guilty plea. Sentencing is scheduled for August 14, 2014.
The Charleston Police Department conducted the investigation. Assistant United States Attorney Jennifer Rada is in charge of the prosecution.
This case is being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
Former Clovis Teacher Sentenced to 38 Years in Prison for Producing Child PornographyRead the Press Release
FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced former Clovis Unified School District teacher Neng Yang, 46, of Clovis, today to 38 years in prison for sexual exploitation of a minor, United States Attorney Benjamin B. Wagner announced. On March 24, 2014, Yang pleaded guilty to two counts of sexual exploitation of a minor.
According to court documents, Yang used an I-Phone and a computer to record and store videos depicting the sexual abuse of a minor on multiple occasions in January of 2012. At the time, the minor was under 12 years of age. The incidents involved sexual contact between the minor and Yang and took place while the minor was under Yang’s supervisory control. Yang was charged with four counts of producing child pornography and has been in federal custody since January 27, 2012.
US Attorney Wagner stated: “Law enforcement at all levels worked together to achieve today’s result. This office will continue to vigorously prosecute those who target innocent and vulnerable victims for sexual exploitation.”
“The unconscionable acts perpetrated by a trusted teacher on a youngster under the age of 12, in addition to producing child pornography, are crimes that must be addressed with a lengthy prison sentence. Clovis Police detectives, some with young children of their own, worked tirelessly to gather evidence and put together a solid case to keep Neng Yang locked up and away from innocent children. This man should never be in a position to victimize a child like this again,” said Clovis Police Chief Matt Basgall.
“For most people, criminal acts against children are impossible to comprehend,” said Mike Prado, resident agent in charge of HSI Fresno. “For a child who has been tricked and sexually exploited by a trusted teacher — while at school — the physical and emotional scars will be with them forever. Thanks to a parent’s vigilance and outstanding law enforcement cooperation, this predator was apprehended before he could further abuse his position of trust to hurt other vulnerable children. As this sentence makes unmistakably clear, child sex predators will be caught, prosecuted, and meted the justice they deserve for their despicable actions.”
This case was the product of an investigation by the Central California Internet Crimes Against Children Task force, specifically the Clovis Police Department and the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, 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.justice.gov/psc. Click on the “resources” tab for information about Internet safety.
Florida Resident Sentenced in Connection with International Lottery Scheme That Defrauded Elderly AmericansRead the Press Release
Charmaine Anne King was sentenced yesterday in connection with her role in a fraudulent international lottery scheme that targeted U.S. citizens, the Justice Department announced. King was sentenced by U.S. District Court Judge K. Michael Moore in Miami to serve 57 months in prison and five years of supervised release. A hearing on restitution has been scheduled for June 5, 2014. 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 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 fraudsters have cheated Americans out of tens of millions of dollars,” said Wifredo Ferrer, U.S. Attorney for the Southern District of Florida. “In this particular scheme, the fraudsters convinced the victims to deposit counterfeit checks into their bank accounts in order to pay fees to collect their purported lottery winnings. After the victims sent the money to King, the counterfeit cashier’s checks bounced and they lost their money. Such fraud will not be tolerated. Together with federal and local law enforcement, we are working to put an end to this type of scheme.”
“The Justice Department will continue to hold criminals accountable for fraudulent lottery schemes,” said Stuart F. Delery, Assistant Attorney General for the Justice Department’s Civil Division. “This illegal conduct creates significant financial harm to people throughout the country, and we will continue to investigate and prosecute such crime, and bring those responsible to justice.”
A federal grand jury in Miami returned an indictment against King and co-conspirator Althea Angela Peart on Oct. 31, 2013. Judge Moore adopted a report and recommendation accepting Peart’s guilty plea on Feb. 4, 2014, and on March 20, 2014, he sentenced Peart to 33 months’ incarceration. As part of her plea agreement, 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.
The evidence at King’s trial showed that a co-conspirator sent fraudulent lottery letters to the victims and included counterfeit cashier’s checks made out to the victims for thousands of dollars. These letters instructed victims to call “claims agents” who were actually co-conspirators, and when the victims called the purported claims agents, the agents informed the victims that they had to pay several thousand dollars in fees in order to collect their purported lottery winnings. The claims agents told the victims to deposit the cashier’s checks in the victims’ bank accounts in order to purportedly cover the money they had to pay. The co-conspirators instructed the victims on how to send and wire this money to King and others. The cashier’s checks that victims received from the fraudulent lottery had no value. The evidence demonstrated that after the victims sent money to King, the counterfeit cashier’s checks bounced. Victims never received any lottery winnings.
Evidence presented at trial showed that King kept a percentage of the money she received from victims and sent the rest of the money to a co-conspirator. King continued to participate in this scheme even after the U.S. Postal Inspection Service verbally informed her that she was participating in unlawful activity, and after she later signed a Cease and Desist Order requiring that she stop receiving money from victims of fraud. The order that King signed described the lottery related activity that the U.S. Postal Inspection Service explained was unlawful.
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.
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.
Five Men Indicted for Producing and Distributing Counterfeit Government Identification DocumentsRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted five men in connection with the production and distribution of counterfeit Social Security and Permanent Resident Alien cards in three Alabama counties, announced U.S. Attorney Joyce White Vance and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr.
The men are charged in three separate indictments filed in U.S. District Court.
PEDRO MONTANEZ-MENDEZ, 39, is charged with providing counterfeit Social Security and Permanent Resident cards to three people in Calhoun County between Feb. 18 and March 26. Montanez-Mendez also is charged with illegally re-entering the United States after previously having been deported.
AMANCIO GONZALEZ-PEREZ, 44, of Tuscaloosa, is charged with transferring counterfeit Social Security and Permanent Resident cards to two individuals in Tuscaloosa on Feb. 5. He is charged with producing and transferring Social Security and Resident cards to a third individual on Feb. 26 in Tuscaloosa, and another set to a fourth individual in March.
Gonzalez-Perez and a co-defendant, ROBERTO ZAMUDIO-SANCHEZ, 25, of Tuscaloosa, face one count of possessing document-making implements on April 23, with the intent to produce counterfeit identification documents.
A third indictment charges EUTIQUIO FRANCO-IBARRA, 25, and JUAN BENITEZ-PACHECO, 33, both of Albertville, with counterfeiting the government identification documents in Marshal County.
Franco-Ibarra is charged with producing, and Benitez-Pacheco with transferring, counterfeit Social Security and Permanent Resident cards to an individual in Marshal County on Feb. 4.
Franco-Ibarra also is charged with transferring a false Social Security card to a second individual on Feb. 27, and Benitez-Pacheco is charged with providing both a Social Security and a Permanent Resident card to a third individual on March 27. Both men are charged with possessing document-making implements on April 22.
Benitez-Pacheco also is charged with illegally re-entering the United States after previously having been deported.
Homeland Security Investigations investigated the cases, which Assistant U.S. Attorney Melissa K. Atwood is prosecuting.
The public is reminded that an indictment contains only charges. It is the government's responsibility to prove guilt beyond a reasonable doubt at trial.
Five Indicted for Conspiracy to Defraud Gulf Oil Spill FundRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted five people in connection to a family run scheme to defraud the claims fund established by British Petroleum for victims of the 2010 Deepwater Horizon oil spill, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Richard D. Schwein Jr.
MARCELLA TRUSS, 53, her husband, MARTEE DAVIS, 41, both of Grand Bay, Ala.; ROBERT TRUSS III, 26, Marcella Truss' son, of Houston; HOWARD LENARD CARROWAY, 42, Marcella Truss' brother, of Mobile; and CEDRIC DION RAVIZEE, 37, of Birmingham; all are charged with conspiring to commit wire and mail fraud in order to make false claims of more than $2.4 million from the Gulf Coast Claims Facility. Davis recruited Ravizee into the scheme, according to the indictment. BP, which owned the Macondo Oil Well where the Deepwater Horizon drilling rig exploded, established the GCCF in June 2010 to administer and settle claims made against the company by individuals or business for losses, damages or other costs resulting from the massive oil spill.
"This indictment, coming the same week as a series of deadly and destructive tornadoes in Alabama, should be a strong warning to anyone who considers taking advantage of a disaster to fraudulently enrich themselves that we watch closely for this kind of crime," Vance said. "We place a high priority on the prompt investigation and prosecution of fraud related to natural and man-made disasters to ensure that funds available to help victims of those tragedies do not fall into the hands of criminals."
“Disasters bring out the best in people, who volunteer to help with clean-up or make charitable donations. Sadly, disasters can also bring out the worst in people, like scam artists," Schwein said. "I encourage anyone with information about possible disaster fraud to contact the Disaster Fraud Hotline at 866-720-5721, or the Disaster Fraud e-mail at [email protected]. You can also report criminal activity to us at 1-800-CALL-FBI.”
The five people charged with the conspiracy to defraud the oil-spill fund also face various other charges in the 60-count indictment, including two counts of obstruction of justice against Carroway. The indictment charges that Carroway tried to persuade two people to call the U.S. Attorney's Office to provide false information, intending to hinder communication with prosecutors about the possible commission of a felony offense.
In the Northern District of Alabama, 15 other people have been charged and pleaded guilty since April 2013 to aiding and abetting the scheme to defraud the GCCF outlined in today’s indictment. Those 15 people were recruited by others to provide personal information that was used to file false claims. They then received claim payments and provided a portion of the payments to those who recruited them, according to the overt acts outlined in today's indictment and court records in the other cases.
Today's indictment charges Marcella and Robert Truss, Davis, Carroway and Ravizee as the recruiters. Many of the multiple wire and mail fraud counts against those five defendants are based on their conduct with the 15 people who have pleaded guilty to charges of mail or wire fraud, conspiracy to commit mail or wire fraud or to engaging in prohibited monetary transactions.
Marcella Truss faces 31 wire fraud and one mail fraud count, two aggravated identity theft counts and one money-laundering count. Davis faces three wire fraud counts, two aggravated identity theft counts and two money-laundering counts. Robert Truss faces three wire fraud counts, two aggravated identity theft counts and two money-laundering counts. Carroway faces five wire fraud counts, two aggravated identity theft counts and the two obstruction counts. Ravizee faces two wire fraud counts.
According to the indictment, the GCCF paid about $1.4 million on the scheme's fraudulent claims, all made between Aug. 27, 2010, and Dec. 5, 2011. All the claims falsely stated that the individual had worked for a company called Built by Request and had lost wages because of the Deepwater Horizon incident.
Thirty-one of the BBR claims were filed by computer from an Internet Protocol address in Center Point, according to the indictment. BBR was a company registered with the State of Alabama by Marcella Truss. She and Davis lived in Center Point during the period relevant to this indictment.
The indictment charges that all five defendants recruited individuals to provide personal identification information and pose as claimants with the GCCF. Marcella Truss used the claimants' identification information and filed the fraudulent claims, and Robert Truss and Ravizee helped claimants open bank accounts for receiving claim funds, according to the charges.
All five defendants accompanied claimants to banks to obtain proceeds from the claim funds, and all five received portions of the false claims that were paid, according to the indictment.
The maximum penalty for each of the following counts charged is: conspiracy, five years in prison and $250,000 fine; wire fraud, 20 years in prison and a $250,000 fine; mail fraud, 20 years in prison and a $250,000 fine; aggravated identity theft, two years in prison added to any sentence imposed for the underlying felony; and obstruction of justice, 20 years in prison and a $250,000 fine.
The money-laundering charge against Davis carries a maximum penalty of 20 years in prison and a maximum fine of $500,000 or twice the value of the money involved in the crime, whichever is greater.
The money-laundering charge against Marcella and Robert Truss carries a maximum penalty of 10 years in prison and $250,000 fine.
The FBI investigated this case, which Assistant U.S. Attorney Henry Cornelius is prosecuting.
The public is reminded that an indictment contains only charges. Defendants are presumed innocent and it is the government's responsibility to prove guilt beyond a shadow of a doubt at trial.Felon on Supervised Release Charged with Illegally Possessing Gun and AmmoRead the Press Release
PITTSBURGH – A Pittsburgh resident has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment named Jason, T. Korey, 31, as the sole defendant.
According to the indictment and other court records, on April 17, 2014, while on federal supervised release for a prior felony conviction, Jason Korey was in possession of a firearm and ammunition.
The law provides for a maximum total sentence of not more than 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government.
The United States Probation Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Felon Charged with Illegally Possessing PistolRead the Press Release
PITTSBURGH – A Pittsburgh man has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 29, named Diontai L. Moore, 30, as the sole defendant.
According to the indictment, on or about Aug. 25, 2013, Moore, being a convicted felon, illegally possessed a FEG, model PA-63, 9mm short caliber pistol. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
The law provides for a minimum sentence of 15 years in prison to a maximum of life, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Barbara K. Doolittle of the United States Attorney’s Office is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation leading to the indictment of Moore.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts North Carolina Man for Discharging A Handgun Near J.e. Robbins Elementary SchoolRead the Press Release
Charleston, W.Va. – A 20-year-old Charlotte, North Carolina man was indicted today by a federal grand jury in Charleston. According to the three-count indictment, on March 25, 2014, Aric Adams, Jr. is alleged to have possessed and discharged a handgun within 1000 feet of J.E. Robins Elementary School, on Charleston’s West Side. The indictment further alleges that Adams was prohibited from possessing the handgun because he is an unlawful user of a controlled substance. Adams allegedly discharged eight rounds from the handgun within 1000 feet of J.E. Robins school shortly after students were released at the end of the school day. Adams was arrested on April 4, 2014 on a federal criminal complaint and is detained without bond pending trial.
If convicted, Adams faces up to 20 years imprisonment and up to $750,000.00 in fines.
The investigation was conducted by the Charleston Police Department.
Note: The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Fairfax Tax Return Preparer Convicted of Tax and Wire FraudRead the Press Release
Defendant Filed False Income Tax Returns in Names of Clients and Pocketed the Refunds
ALEXANDRIA, Va. – Thuy Tien Le, 40, of Sterling, Va., pleaded guilty today to aiding in the preparation of false income tax returns and to wire fraud, in connection with her operation of a tax return preparation business called T2 Advantage Services, LLC.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; and Thomas J. Kelly, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation, made the announcement after the plea was accepted by U.S. District Judge Claude M. Hilton.
Le faces a maximum penalty of three years in prison on the tax charge and 20 years in prison on the wire fraud charge when she is sentenced on July 18, 2014.
In a statement of facts filed with her plea agreement, Le admitted that from 2005 through 2013, she owned T2 Advantage Services, LLC, a tax return preparation business she operated from her home in Fairfax, Va. Le prepared federal income tax returns for her clients and led them to believe she had electronically filed legitimate returns with the IRS. Le admitted, however, that prior to filing, she altered the returns by adding false itemized deductions in order to generate large income tax refunds. Le admitted that she prepared and filed false income tax returns in this manner for at least 50 clients, without their knowledge or consent, and that she caused the fraudulently generated income tax refunds to be deposited electronically into bank accounts she controlled. She further admitted that she caused $454,455 in losses to the IRS.
This case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Paul J. Nathanson is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.FBI Arrests Moorpark Man in ‘Sextortion’ Case That Targeted Fans of Teen Music Acts Such as One Direction and Justin BieberRead the Press Release
LOS ANGELES – A Moorpark man accused of using social networking websites to trick and extort more than a dozen girls and boys into sending him naked photos and videos was arrested today on federal child pornography charges.
Jeremy Brendan Sears, 23, was arrested this morning without incident by the Ventura Sexual Assault Felony Enforcement Task Force (the Ventura S.A.F.E. Team), which is made up of agents and officers with the FBI and Ventura County Sheriff's Office.
Sears, who was named in a two-count criminal complaint filed yesterday, made his initial appearance this afternoon in United States District Court.
According to the affidavit in support of the complaint, Sears approached many of his victims after finding them active in social-networking groups for fans of music acts popular with young teenagers, such as Justin Bieber or One Direction. Sears set up fake profiles on Facebook, Meetme, and other social networking websites that appeared to be from teenage boys and girls. Sears allegedly used the bogus profiles to communicate with real-life teenagers, sometimes beginning online romantic relationships with the real-life teens and then encouraging them to send him sexually explicit videos and photos of themselves.
On other occasions, Sears threatened to harm the real-life teens or their loved-ones unless they sent him naked images. In some cases, after receiving the images of the underage victims, Sears would distribute those images, along with the victims’ names and personal information, to other members of his online social networking groups or to publicly accessible websites. In one case, Sears gained access to a victim’s Facebook account and posted naked photos of her on her own profile page, where they could be seen by her friends and schoolmates. Once Sears had photos of a victim, he commonly used the threat of further harassment and distribution to extort more images.
The federal criminal complaint unsealed at Sears’ court appearance this afternoon charges him with two counts of producing child pornography. During today’s hearing, United States Magistrate Judge Alka Sagar ordered Sears detained (held without bond) and scheduled an arraignment for May 20. Sears was not asked to enter a plea.
According to the affidavit, Sears is also the subject of an ongoing investigation by the Ventura County Sheriff’s Office. The Ventura County District Attorney’s Office last year charged Sears for targeting a Ventura County teenage boy by claiming to be a teenage girl, encouraging the boy to send him naked images, and then insisting that they meet in a park so that he could take the boy to a non-existent girl. Sears was arrested and released on bail in that case in August, but investigators recently determined that he continued to solicit and receive naked images from at least one teenager after that time, according to the affidavit.
Investigators believe that Sears victimized several dozen teenagers — many in Southern California, and some are believed to be overseas — but authorities have not identified all of the victims. Anyone who believes they may have been a victim in this case should contact the FBI in Ventura at (805) 642-3995 or the Ventura County Sheriff's Department at (805) 654-9511.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge of producing child pornography carries a mandatory minimum sentence of 15 years in federal prison and a statutory maximum penalty of 30 years.
The investigation was conducted by the Federal Bureau of Investigation and the Ventura County Sheriff’s Office.
Release No. 14-053
Downtown Pittsburgh Convenience Store Owners Defrauded Food Stamp ProgramRead the Press Release
PITTSBURGH – The owners of a local convenience store pleaded guilty to charges of conspiracy to commit wire fraud and food stamp fraud, United States Attorney David J. Hickton announced today.
Hadi and Wesam Ibrahim, brothers and owners and operators of City News & Arcade on Wood Street, Pittsburgh, Pa., each pleaded guilty to one count of conspiracy before Senior United States District Judge Maurice B. Cohill. The defendants also executed civil settlement agreements for violations of the False Claims Act, and agreed to pay to the United States the sum of $199,605.38.
In connection with the guilty plea, the court was advised that City News & Arcade participated in the United States Department of Agriculture's Supplemental Nutrition Assistance Program, commonly known as the food stamp program. Food stamp recipients could purchase eligible food items using food stamp benefit cards at City News & Arcade. As a condition of participation in the food stamp program, the defendants certified that they would comply with all rules and regulations of the program and were aware that program rules strictly prohibited the exchange of food stamp benefits for cash and/or for ineligible items. Despite this knowledge, on multiple occasions, the defendants exchanged food stamp benefits with customers in exchange for cash on a discounted basis, usually giving the customers only .50 cents on the dollar for their food stamp benefits. The defendants also permitted food stamp customers to purchase ineligible non- food items, such as cigarettes, with food stamp benefits.
Judge Cohill scheduled sentencing for Aug. 14, 2014. The law provides for a total sentence of five years in prison, a fine of $250,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Pending sentencing, the court released the defendants on bond.
Assistant United States Attorney Tonya Sulia Goodman is prosecuting these cases on behalf of the government. Assistant United States Attorney Colin Callahan is litigating the cases on behalf of the Affirmative Civil Enforcement Section of the United States Attorney's Office.
The Office of the Inspector General for the United States Department of Agriculture and the Department of Homeland Security, Homeland Security Investigations conducted the investigation that led to the prosecution of the Ibrahim brothers.
Detroit-Area Physical Therapist, Physical Therapy Assistant and Unlicensed <br /> Doctor Convicted in $14.9 Million Medicare Fraud SchemeRead the Press Release
A federal jury in Detroit today convicted a physical therapist, physical therapy assistant and unlicensed doctor for their participation in a nearly $15 million Medicare fraud scheme.Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the Detroit Office of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Office of Investigations made the announcement.
Shahzad Mirza, 43, a physical therapist; Jigar Patel, 30, a physical therapy assistant; and Srinivas Reddy, 38, a foreign medical school graduate without a license to practice medicine were each found guilty of one count of conspiracy to commit health care fraud in connection with a scheme perpetrated from approximately July 2008 through September 2011 at Detroit area companies Physicians Choice Home Health Care LLC (Physicians Choice), Quantum Home Care Inc. (Quantum), First Care Home Health Care LLC (First Care), Moonlite Home Care Inc. (Moonlite) and Phoenix Visiting Physicians. In addition, Mirza and Patel were each found guilty of two counts of health care fraud in connection with the submission of false claims to Medicare for home health services, and Reddy was found guilty of three counts of health care fraud in connection with the submission of false claims to Medicare for home health services and physician home visits. Patel was found guilty of one count of money laundering in connection with his laundering of the proceeds of the fraud through his company MI Healthcare Staffing.
The defendants were charged in a superseding indictment returned Feb. 6, 2012. Three other individuals charged in the indictment remain fugitives.
According to evidence presented at trial, Physicians Choice, Quantum, First Care and Moonlite operated a fraudulent scheme to bill Medicare for home health care services that were never provided. The home health care companies paid kickbacks to recruiters who in turn paid Medicare beneficiaries cash and promised them access to narcotic prescriptions. The conspirators created the company Phoenix Visiting Physicians, which employed unlicensed individuals, including Reddy, to visit patients and provide them with narcotic prescriptions as well as obtain the information necessary to fill out paperwork to refer them for medically unnecessary home health care services.
Evidence presented at trial showed that beneficiaries pre-signed medical paperwork that was provided to Patel and other physical therapist assistants to fill in with false information purporting to show that the care was provided, when it was not. Patel, registered physical therapist Mirza and others would sign this paperwork as though they had provided services. In the course of the conspiracy, Patel incorporated his own staffing company, MI Healthcare Staffing, through which he laundered proceeds of the fraud from home health care companies and a shell company owned and operated by his co-conspirators.
Physicians Choice and the related companies were paid nearly $15 million in the course of the conspiracy.
Sentencing for all three defendants has not yet been scheduled.
The investigation was led by the FBI and HHS-OIG, and was brought by the Medicare Fraud Strike Force, a joint effort of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. The case was prosecuted by Assistant Chief Catherine K. Dick and Trial Attorneys Matthew C. Thuesen and Rohan A. Virginkar of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Corrections Officer Arrested on Federal Bribery Charge, Accused of Taking Cash to Smuggle Contraband into FacilitySecond Officer Was Arrested Last Week in Related CaseRead the Press Release
WASHINGTON - Lenard Fleming, 33, a corrections officer with the Corrections Corporation of America (CCA), has been arrested and charged with bribery following an undercover FBI investigation in which he allegedly accepted money for smuggling contraband into the District of Columbia’s Correctional Treatment Facility.
The charge was announced by U.S. Attorney Ronald C. Machen Jr.; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and Thomas N. Faust, Director of the District of Columbia Department of Corrections.
Fleming was arrested today by the FBI and appeared this afternoon in the U.S. District Court for the District of Columbia. He pled not guilty and was released on personal recognizance pending a hearing on May 14, 2014.
Fleming had worked for CCA as a corrections officer at the Correctional Treatment Facility. CCA, a private company, has a contract to provide services to the D.C. Jail.
The arrest came nine days after another CCA corrections officer, Darren Malry, 51, was apprehended and charged with bribery in a related investigation. Malry also worked for CCA at the Correctional Treatment Facility. He has pled not guilty to the charge.
According to the charging documents that were filed today, on Jan. 5, 2014, Fleming met with an undercover FBI agent in the parking lot of a shopping center in Capitol Heights, Md. The undercover agent gave Fleming a cellphone and cigarettes for Fleming to deliver to an inmate housed at the Correctional Treatment Facility. The undercover agent also provided Fleming with $750 in cash at that meeting, which was given in exchange for Fleming smuggling the contraband into the facility and delivering it to the inmate. The FBI recovered the contraband from the inmate shortly after Fleming gave the items to the inmate.
Fleming was terminated by CCA in February 2014 following a complaint that he was smuggling contraband into the facility for another inmate.
A criminal complaint is merely a formal charge that a defendant has committed a violation of criminal laws. Every defendant is presumed innocent until, and unless, proven guilty.
The case is being investigated by the FBI’s Washington Field Office with assistance from the District of Columbia Department of Corrections Office of Investigative Services. It is being prosecuted by Assistant U.S. Attorney Richard DiZinno, of the Fraud and Public Corruption Section of the U.S. Attorney’s Office, with assistance from Assistant U.S. Attorneys Catherine K. Connelly and Allessandra Stewart, of the Asset Forfeiture and Money Laundering Section.
14-103Connecticut Man Sentenced to More than 16 Years on Crack Cocaine ChargesRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Markevin Faucette, 41, of Hartford, Connecticut, was sentenced today in United States District
Court by Judge D. Brock Hornby to more than 16 years in prison and 8 years of supervised release for conspiracy to distribute cocaine base, that is, crack cocaine, and possession with intent to distribute cocaine base. Faucette pleaded guilty to the charge on October 2, 2013.According to court records, on January 9, 2013, Faucette, Margoliz Velazquez, and
Amanda Rodriguez transported about 47 grams of cocaine base from Connecticut to Auburn, Maine where it was seized by police. Based on that seizure and on other drug trips made between Connecticut and Maine, Faucette was held responsible for over 500 grams of cocaine base.Faucette received an enhanced sentence as a “career offender” because he had five prior felony drug trafficking convictions in Connecticut, Virginia, and North Carolina.
This case was investigated by the Maine Drug Enforcement Agency with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lewiston, Auburn, and Lisbon
Police Departments.Complaints Filed, Warrants Served to Stop Sales of Synthetic MarijuanaRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMORGANTOWN, WEST VIRGINIA – Civil actions have been filed against two Morgantown businesses that are alleged to have made millions of dollars by selling large quantities of synthetic marijuana.
United States Attorney William J. Ihlenfeld, II, was joined by other law enforcement leaders on Wednesday morning in announcing the action that was taken against businesses in Morgantown, West Virginia known as Mid-Nite Adult and the X-Hale Hookah Lounge. Federal search warrants were executed at each of the businesses on Tuesday afternoon, and on Wednesday morning Ihlenfeld filed civil complaints seeking to prevent X-Hale and Mid-Nite Adult from selling synthetic marijuana. The civil actions also seek to seize certain assets from the entities, including the business licenses of each as well as all inventory containing a controlled substance or a controlled substance analogue.
X-Hale is alleged to be owned and operated by Nicholas and Steven Graziano and is located at 218 Walnut Street, Morgantown, West Virginia. The business is incorporated under the name of Hookabuy, Inc., and was issued a business license by the State of West Virginia on July 20, 2010.
Mid-Nite Adult is alleged to be owned and operated by Daniel and Sally Kocan and is located at 275 Spruce Street in Morgantown. The business is incorporated under the name of Pit-ERI, LLC, and was issued a business license by the State of West Virginia on April 29, 2009.
The civil actions allege that both entities were selling significant amounts of synthetic marijuana, also known as synthetic cannabinoids. These are Schedule I controlled substances with similar effects as traditional marijuana. Synthetic cannabinoids are commonly packaged and labeled as “Spice”, “Herbal incense”, or “K2.” As part of the investigation, undercover controlled purchases were made from both businesses and then the substances acquired were submitted to the DEA’s Mid-Atlantic Laboratory for analysis.
It is alleged that Mid-Nite Adult generated approximately $3.2 million over a 20 month period from the sale of synthetic marijuana. X-Hale is alleged to have generated just over $1 million over the same time period for selling the same product. The owners of X-Hale also are alleged to have purchased automobiles with proceeds from its enterprise, including a 2011 BMW 750I for $95,900.
In addition to searching Mid-Nite Adult and X-Hale, agents also searched the Morgantown business known as Dahlia’s on Walnut. Searches were conducted of the homes of the owners of the businesses, and bank accounts of the businesses and their owners were seized.
Ihlenfeld was joined in making the announcement on Wednesday by Chief Ed Preston of the Morgantown Police Department, Monongalia County Sheriff Al Kisner, and Jason Gandee, Supervisory Special Agent with Internal Revenue Service, Criminal Investigations.
“There is a common misperception that synthetic marijuana is safe to smoke,” said Ihlenfeld. “In fact the opposite is true, as the substance is unpredictably dangerous and can cause serious medical problems, including excessive heart rate, kidney failure, seizures, and psychoses. And because every batch is different, and because there is no regulation or oversight, there’s no way for a user to know what effect it will have until it’s too late.”
“Synthetic marijuana is a public health risk, and the action taken by law enforcement this week provides us with an excellent opportunity to educate the public about the harm that it can cause,” said Chief Preston.
As a result of the searches on Tuesday evidence was recovered and is being processed by the Mon Valley Drug Task Force, which is leading the investigation. The Task Force consists of officers and agents from the Morgantown Police Department, the Monongalia County Sheriff’s Department, and the DEA. Agents from Internal Revenue Service- Criminal Investigations, and the Three Rivers Drug Task Force are also assisting with the matter. Officers from the Greater Harrison County Drug and Violent Crime Task Force assisted with the execution of the search warrants.
According to Ihlenfeld, no criminal charges have been filed, and the investigation is ongoing.
Chicago Man Sentenced to 27 Months in Prison for Threatening Police Officers and Others Before and After 2008 Cougar KillingRead the Press Release
CHICAGO — A Chicago man was sentenced today to more than two years in federal prison for mailing more than 90 threatening and/or harassing letters to Chicago police officers, other government and law enforcement officials, private individuals, schools, and religious institutions in the Chicago area between November 2003 and December 2012. The defendant, RICHARD HYERCZYK, had pleaded guilty in January to one count of mailing a threatening communication.
Hyerczyk, 54, of Chicago’s Garfield Ridge neighborhood, was ordered to begin a 27- month prison term on July 29, followed by three years on supervised release, and he was fined $10,000 by U.S. District Judge Gary Feinerman. In imposing the sentence, the judge cited the “cold-blooded nature of the threats and the fear, harm, and apprehension that was created by these threats.”
When he was charged in January, prosecutors said Hyerczyk had been cooperative in the investigation and was not believed to be a danger to the community or a risk of flight. The prosecution followed a lengthy investigation by the FBI-led Chicago Joint Terrorism Task Force.
In pleading guilty, Hyerczyk admitted mailing a letter on April 21, 2008, that threatened to kill Chicago Police Department officers and members of their families. That letter followed local news media reports on April 15, 2008, that Chicago police officers had shot and killed a cougar that was located on the city’s north side. Hyerczyk admitted that he drafted letters containing threats to kill and commit violence against CPD officers and members of their families.
The plea agreement detailed one such letter, which began with the salutation, “Dear Cougar Killers (aka Chicago PIG Police),” and included the following threatening messages: “Prepare to DIE like the Cougar you killed. On May 4th at your St. Jude Memorial March several PIGS will be shot by snipers.”; “BURN down the Daley house in Michigan.”; and “Kill any Police Officer, where ever they are found, like they killed the Cougar.”
Hyerczyk admitted that he drafted a second letter, which contained a title that referenced a severely injured former Chicago police officer by name and referred to the officer as the “PARALIZED [sic] PIG,” and which title contained the phrase “St. Jude Memorial PIG March.” This second letter threatened that: “A police officer will be SHOT DEAD, like they shot the cougar, at the May 4th St. Jude Memorial PIG March.”; “A celebration of DEAD police officers. Ha ha ha ha you are all better off DEAD.”; and “When the PIGS are at the parade, we will be at their homes. You can=t guard every PIGS house...watch your young children.”
After drafting these letters, Hyerczyk printed multiple copies of each and placed them into envelopes bearing first class postage and addressed to, among others: a university in Orland Park; the same university’s office of graduate studies in Chicago; the same university’s English Department in Chicago; and a Chicago Police officer and executive officer of a Fraternal Order of Police lodge in Chicago.
Hyerczyk admitted that he mailed these letters knowing and intending that they would be interpreted as threatening by the intended victims, including Chicago Police officers and their families.
The Chicago Joint Terrorism Task Force began investigating the threatening letters in this case after they were first received in 2003. The investigation resulted in a federal search warrant being executed on Hyerczyk’s residence and automobile, as well as for his DNA, in January 2013. The JTTF is composed of special agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state, and local law enforcement agencies.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorneys Christopher Veatch and Steven Dollear.
Chester County Couple Charged with Sex Trafficking of Two ChildrenRead the Press Release
PITTSBURGH - Two Chester County residents have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy to engage in sex trafficking and sex trafficking of a child, United States Attorney David J. Hickton announced today.
The three-count superseding indictment, returned on April 29, named Rasul Abernathy, 32, and Poshauntamarin Walker, 35, formerly of Coatesville, Pa. as the defendants.
According to the superseding indictment, beginning in at least July of 2012, and continuing through on or about March 1, 2013, Abernathy and Walker did knowingly conspire to recruit for sex trafficking and did in fact traffic a male and female minor, both under the age of 18 years, in Pittsburgh for commercial sex acts.
The law provides for a maximum total sentence of life in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Allegheny County Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
California Men Sentenced to Prison for Transporting Minor Girls from California to Nevada to Work as ProstitutesRead the Press Release
LAS VEGAS, Nev. – Two men were sentenced to prison today for transporting minor girls from the northern California area to Las Vegas, Nev., in 2013 to work as prostitutes, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
In separate unrelated cases, Andrew West, 27, of Hayward, Calif., was sentenced by U.S. District Judge James C. Mahan to eight years in prison and 20 years of supervised release. West pleaded guilty in January to one count of transportation of a minor for prostitution. Ray Darnell Webb, 20, also of Hayward, Calif., was sentenced by U.S. District Judge Kent J. Dawson to eight years in prison and 10 years of supervised release. Webb pleaded guilty in January to one count of coercion and enticement. Both men will also have to register as sex offenders when they are released from prison.
“Transporting minors across state lines to work as prostitutes is a federal felony crime with serious penalties,” said U.S. Attorney Bogden. “We are working with our federal, state and local law enforcement and community partners to ensure that the persons who commit these types of crimes are prosecuted.”
According to the court records in West’s case, on May 3, 2013, West and a 16-year-old girl victim and others, traveled in several vehicles from San Jose, Calif., to Las Vegas. The next day, West and the 16-year-old girl, and another male, checked into a motel on the Boulder Highway. West told the girl to make money (by committing sex acts) to pay for the room. The girl walked the Boulder Highway in search of dates, and solicited separate dates with four men who she took back to the motel room. The girl earned a total of $260, part of which was provided to West after each date. The girl was arrested on May 4, 2013, when she attempted to solicit a date from an undercover Las Vegas Metropolitan Police Department Officer in the motel parking lot.
According to the court records in Webb’s case, in early 2013, Webb and a co-defendant, Seagram Miller, met one of the victims, a 12-year-old female, in Oakland, Calif. where she was working as a prostitute. Shortly thereafter, the 12-year-old began working as a prostitute for Webb and Miller, and provided the money she made working as a prostitute to them. In about April 2013, Miller met a 16-year-old female on Facebook, and she also began working as a prostitute for Miller and Webb. In April 2013, Miller, Webb, and the two minor girls, decided to travel to Las Vegas to make money. Before leaving, Webb and the 16-year-old girl posted an advertisement on MyRedbook.com so that they would have dates lined up when they arrived in Las Vegas. The advertisement contained photographs of the 16-year-old. On April 29, 2013, Webb, Miller, and the two minor girls drove from Oakland to Las Vegas and stayed in a rented hotel room on Las Vegas Boulevard. Both girls worked as prostitutes on April 30 and in early May.
Miller also pleaded guilty and is scheduled to be sentenced on May 20, 2014.
The cases were investigated the FBI and Las Vegas Metropolitan Police Department, as part of the Innocence Lost Task Force. The cases are being prosecuted by Assistant United States Attorneys Nicholas D. Dickinson and Phillip N. Smith, Jr.The 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 www.usdoj.gov/psc.California Banker Charged with Helping U.S. Taxpayers Conceal Secret Israeli Bank AccountsRead the Press Release
Shokrollah Baravarian, of Beverly Hills, California, was charged today in the U.S. District Court for the Central District of California with conspiracy to defraud the United States, the Justice Department and Internal Revenue Service (IRS) announced.
According to the indictment, Baravarian, a former senior vice president at the Los Angeles branch of a bank headquartered in Tel Aviv, Israel, conspired to conceal the existence of undeclared accounts owned and controlled by U.S. customers in Israel. The indictment alleges that these accounts were concealed from the IRS by opening them under pseudonyms, code names and the names of nominee entities set up in the British Virgin Islands and the island of Nevis.
“This charge results from an ongoing and extensive investigation into the use of undeclared bank accounts in Israel, and demonstrates the department’s determination to find and prosecute those who help U.S. taxpayers evade taxes through offshore accounts located anywhere in the world,” said Deputy Attorney General James M. Cole.
“IRS-Criminal Investigation and Tax Division prosecutors have been investigating the use of undeclared bank accounts globally, and charges have been brought against not only the U.S. taxpayers with undeclared Israeli bank accounts but also those who facilitate the hiding of assets and income abroad,” said Assistant Attorney General Kathryn Keneally for the Tax Division. “Whether it be Israel, Switzerland, the Caribbean or elsewhere, the Justice Department is finding the hiding places and is committed to prosecuting tax cheats.”
“The defendant assisted others to hide the true ownership of offshore bank accounts through the use of code names and nominee entities,” said Chief of IRS-Criminal Investigation Richard Weber. “Our special agents unraveled the complex financial transactions used to disguise the funds in the undeclared accounts. Those who help others commit tax evasion risk prosecution and substantial monetary penalties.”
The indictment further alleges that Baravarian assisted U.S. customers in secretly accessing the funds in their undeclared accounts by obtaining back-to-back loans from the Los Angeles branch of the bank. According to the indictment, a back-to-back loan was a loan that was secured by funds in an undeclared account in Israel and issued by the Los Angeles branch to a U.S. customer. Baravarian is alleged to have helped conceal the fact that U.S. customers were using their own funds as collateral by purposely not keeping copies of loan-related documents in the files at the Los Angeles branch. These documents included Israeli account information and pledge agreements used to secure the loans. As detailed in the indictment, some U.S. customers obtained back-to-back loans from the Los Angeles branch by transferring funds to Israel from other foreign countries, including Switzerland and China.
The indictment further alleges that a banker in Israel would periodically travel to Los Angeles and meet with U.S. customers to discuss their account statements. Prior to making these trips, the banker would redact the names of the U.S. customers reflected on the account statements.
Baravarian is the latest in a series of defendants charged in the U.S. District Court for the Central District of California with conspiring to defraud the United States in connection with using undeclared bank accounts in Israel to obtain back-to-back loans in the United States.
U.S. citizens and residents who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns and on a Report of Foreign Bank and Financial Reports filed with the U.S. Treasury.
If convicted, Baravarian faces a potential maximum prison term of five years and a maximum fine of $250,000. The charge contained in the indictment is only an allegation. The defendant is presumed innocent and it is the government’s burden to prove guilt beyond a reasonable doubt.
The case was investigated by special agents of IRS-Criminal Investigation. Senior Litigation Counsel John E. Sullivan and Assistant Chief Elizabeth C. Hadden of the Tax Division are prosecuting the case with the assistance of Assistant U.S. Attorney Sandra R. Brown, Chief of the Tax Division of the U.S. Attorney’s Office for the Central District of California.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Buffalo Man Sentenced on Drug ChargeRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that Joseph Lopez, 44, of Buffalo, N.Y., who was convicted of possession of cocaine with intent to distribute, was sentenced to nine years in prison by Chief U.S. District Court Judge William M. Skretny.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on November 3, 2011, law enforcement officers executed a search warrant at the defendant’s residence on Hertel Avenue in Buffalo. During the search, officers seized approximately 400 grams of cocaine, approximately $8,000 in U.S. currency, and three firearms.
The sentencing is the culmination of an investigation on the part of the Buffalo Police Department, under the direction of Commissioner Daniel Derenda and the Drug Enforcement Administration, under the direction of James J. Hunt, Acting Special Agent in Charge, New York Field Division.Buffalo Man Pleads Guilty to Clean Air Act Violation Involving Kensington Towers ProjectRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Ernest Johnson, 42, of Buffalo, N.Y., pleaded guilty before U.S. District Court Judge Richard J. Arcara, to violating the Clean Air Act asbestos work practice standards. The charge carries a maximum penalty of five years in prison, a fine of $250,000 or both.
Assistant U. S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was the president of Johnson Contracting of WNY, Inc., an asbestos abatement company that was hired to conduct asbestos abatement activities at six buildings at the Kensington Towers Apartment Complex, located at 1827 Fillmore Avenue in Buffalo. In a pre-abatement asbestos survey, each building at Kensington Towers was found to contain 63,000 square feet of regulated asbestos containing material. The asbestos abatement project lasted from June 2009 to January 2010.
During the asbestos abatement of building A-1, the defendant, and employees working under his direction, violated the Clean Air Act asbestos work practice standards by failing to adequately wet Regulated Asbestos during stripping and removal operations and by failing to ensure that Regulated Asbestos remained wetted until placed in leak-tight containers. The defendant also caused Regulated Asbestos to be dropped down holes cut through the floors in Building A-1.
Johnson is the fifth defendant to plead guilty as part of the Kensington Towers asbestos abatement project. In addition to Ernest Johnson, other charged defendants include Rai Johnson, JMD project monitors Evan Harnden, Chris Coseglia, Henry Hawkins and Brian Scott, and current and former public officials responsible for certifying the project’s compliance with applicable laws and regulations, including Donald Grzebielucha, William Manuszewski, and Theodore Lehmann. The remaining defendants are expected to go on trial May 13, 2014 before U.S. District Court Judge Richard J. Arcara. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation on the part of Special Agents of the U.S. Environmental Protection Agency - Criminal Investigation Division, under the direction of Acting Special Agent-In-Charge, Vernesa Jones-Allen; Special Agents of the Federal Bureau of Investigation, Special Agents of the U.S. Department of Housing and Urban Development - Office of Inspector General, under the direction of Special Agent-In-Charge Christina Scaringi; and Investigators of the New York State Department of Environmental Conservation Police, BECI, under the direction of Captain David Bennett. Additional assistance was provided by the New York State Department of Labor, Asbestos Control Bureau.
Sentencing is scheduled for August 15, 2014, 2014 at 1:00 p.m. before Judge Arcara.Buffalo Man Pleads Guilty to Bank RobberyRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Michael Tynes, 54, of Buffalo, N.Y., pleaded guilty to bank robbery before U.S. District Judge Richard J. Arcara. The charge carries a maximum sentence of 20 years in prison, a 250,000 fine or both.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, Tynes robbed two M&T Banks:
• On August 7, 2013, the defendant entered M&T Bank, located at 133 Jefferson Avenue, Buffalo, and passed the teller a demand note stating: “This is a stick up. Give me 30. $100.00 bills. And 40. $50.00 bills. No dye packs. I have a crew outside. If I am not out of here in 4 min, they will come in. Do not sound alarm.” The teller gave Tynes an amount of money.
• On September 11, 2013, the defendant entered M&T Bank, located at 1300 Jefferson Avenue in Buffalo and passed the teller a demand note stating: “Fast. This is a stick up. No dye packs. I have a crew outside. Don’t sound alarm. 30. $100.00 dollar bills 40. $50.00 dollar bills. FAST!” The teller gave Tynes an amount of money.
The plea is the culmination of an investigation by the Federal Bureau of Investigations Safe Streets Task Force and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for August 15, 2014 at 12:30 p.m.Bethel Park Man Charged in Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of bank and wire fraud conspiracy, United States Attorney David J. Hickton announced today.
The one-count indictment, returned on April 29, named Richard Stromberg, 49, of Bethel Park, Pa., as the sole defendant.
According to the indictment, from in and around August of 2002, and continuing until in and around June of 2008, Stromberg knowingly conspired with other individuals known to the grand jury to defraud lenders. Stromberg operated a mortgage broker firm, Great American Home Equity. The conspiracy involved the submission to lenders of loan applications that contained material misrepresentations about the borrower’s financial condition, such as inflating the borrower’s income and assets, and appraisals that overstated the values of the properties serving as collateral for the loans. Stromberg and others also submitted false supporting documentation for the misrepresentations contained in the applications.
The law provides for a maximum total sentence of 30 years in prison, a fine of $1,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
The Mortgage Fraud Task Force (MFTF) conducted the investigation leading to the indictment in this case. The MFTF is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the MFTF include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other MFTF members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Mortgage industry members with knowledge of fraudulent activity are encouraged to call the Mortgage Fraud Task Force at (412) 894-7550. Consumers are encouraged to report suspected mortgage fraud by calling the Pennsylvania Attorney General's Consumer Protection Hotline at (800) 441-2555.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Art Gallery Owner Helly Nahmad Sentenced to One Year and One Day for Being A Leader of an International, Multimillion-Dollar Illegal Sports Gambling BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that HILLEL NAHMAD, a/k/a “Helly,” was sentenced today in Manhattan federal court to one year and one day in connection with his leadership role in the operation of a high-stakes illegal sports gambling business. NAHMAD was also ordered to forfeit $6,427,000 and all his right, title, and interest in the painting Carnaval à Nice, 1937 by Raoul Dufy to the United States. He was sentenced by U.S. District Judge Jesse M. Furman.
Manhattan U.S. Attorney Preet Bharara said: “For art gallery owner Helly Nahmad, running a multimillion-dollar illegal sports gambling business came with a steep price, forfeiture of over $6 million and time behind bars – a punishment he likely never pictured.”
According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing:
NAHMAD operates the Helly Nahmad Gallery out of the Carlyle Hotel in New York, New York. NAHMAD and defendant Illya Trincher operated and led a nationwide illegal gambling business in New York City and Los Angeles that catered primarily to multi-millionaire and billionaire clients. As part of this business, the organization ran a high-stakes, illegal sportsbook that utilized several online gambling websites operating illegally in the United States. The organization booked bets that were often in the hundreds of thousands of dollars, and at times a million dollars, on a single sporting event. The organization also made millions of dollars of sports bets each year. NAHMAD was the primary source of financing for the illegal gambling business, and he was entitled to a substantial share of its profits.
Twenty-eight defendants in this case have pled guilty, and two have entered into deferred prosecution agreements. The defendants who have pled to date have agreed to forfeit, in total, more than $68 million. The following defendants have pled guilty, and have been sentenced or await sentencing:
- Bryan Zuriff pled guilty to gambling charges on July 26, 2013, and was sentenced on November 25, 2013.
- William Barbalat pled guilty to gambling charges on August 14, 2013, and was sentenced on December 16, 2013.
- Kirill Rapoport pled guilty to gambling charges on August 16, 2013, and was sentenced on December 19, 2014.
- Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013, and were sentenced on January 21, 2014, and January 6, 2014, respectively.
- Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013, and were sentenced on April 18, 2014, and February 14, 2014, respectively.
- Alexander Zaverukha pled guilty to gambling charges on October 10, 2013, and is scheduled to be sentenced on May 1, 2014.
- Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013, and was sentenced on February 25, 2014.
- Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013, and is scheduled to be sentenced on June 10, 2014.
- Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013, and was sentenced on March 25, 2014.
- Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013, and is scheduled to be sentenced on May 2, 2014.
- Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013, and was sentenced on April 9, 2014.
- Hillel Nahmad pled guilty to gambling charges on November 12, 2013, and was sentenced on April 30, 2014.
- Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013, and was sentenced on April 30, 2014.
- Eugene Trincher pled guilty to gambling charges on November 14, 2013, and is scheduled to be sentenced on June 9, 2014.
- Anatoly Golubchik pled guilty to conspiring to commit racketeering on November 15, 2013, and was sentenced on April 29, 2014.
- Illya Trincher pled guilty to gambling charges on November 15, 2013, and is scheduled to be sentenced on May 8, 2014.
- Ronald Uy pled guilty to structuring financial transactions on November 25, 2013, and was sentenced on March 27, 2014.
- Moshe Oratz pled guilty to gambling charges on December 3, 2013, and was sentenced on April 9, 2014.
- Michael Sall pled guilty to interstate travel in aid of an unlawful activity (illegal gambling) and Jonathan Hirsch pled guilty to gambling charges on December 4, 2013. Sall was sentenced on April 18, 2014, and Hirsch is scheduled to be sentenced on May 9, 2014.
- Noah Siegel pled guilty to gambling charges on December 5, 2013, and was sentenced on April 10, 2014.
- Molly Bloom pled guilty to gambling charges on December 12, 2013, and is scheduled to be sentenced on May 2, 2014.
- Alexander Katchaloff pled guilty to gambling charges on January 16, 2014, and is scheduled to be sentenced on May 20, 2014.
- Donald McCalmont, John Jarekci, a/k/a “John Hanson,” and Abraham Mosseri pled guilty to making a fraudulent tax statement, failing to file a tax return, and causing a financial institution to participate in a lottery related matter, respectively, on January 24, 2014, and are scheduled to be sentenced on May 29, 2014, May 28, 2014, and May 21, 2014, respectively.
- William Edler and Peter Feldman entered into deferred prosecution agreements on April 11, 2014.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter J. Skinner, and Kristy J. Greenberg of the Violent and Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorney Alexander Wilson of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
Albrecht Muth Sentenced to 50 Years in Prison for 2011 Slaying of His 91-Year-Old Wife-Slaying Followed History of Domestic Violence-Read the Press Release
WASHINGTON – Albrecht Muth, 49, of Washington, D.C., was sentenced today to 50 years in prison for first-degree murder in the slaying of his wife, 91-year-old Viola Drath, announced U.S. Attorney Ronald C. Machen Jr. and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD).
Muth, who has taken on numerous personas over the years, including that of an Iraqi Army general, was found guilty in January 2014 by a jury following a trial in the Superior Court of the District of Columbia. The jury found Muth guilty of first-degree (premeditated) murder with the aggravating circumstances that the murder was especially heinous, cruel, and inflicted on a vulnerable victim. Muth was sentenced by the Honorable Russell F. Canan.
The sentencing, like the trial, took place without the defendant present in the courtroom. Muth, who has been in custody since his arrest in August 2011, has been hospitalized after staging a series of hunger strikes dating to December of 2012. His refusal of regular sustenance has caused his physical health to deteriorate and resulted in the hospitalization. The government contended that Muth’s refusal to eat was part of a manipulation designed to avoid trial. Muth was able to listen to and participate in the trial proceedings, out of view of the jury, via a video link to the courtroom. Likewise, he was able to listen to and participate in today’s sentencing that way.
At sentencing today, Judge Canan declared that the evidence against Muth was “overwhelming” and that his refusal to eat was “a transparent attempt to avoid prosecution.”
“Albrecht Muth’s 20 years of violence toward his wife ended only when he strangled her to death in their Georgetown home,” said U.S. Attorney Machen. “For the rest of his life, Muth won’t be able to masquerade as a military officer or member of a royal family while subjecting his wife to intolerable abuse. He will be a federal inmate paying the price for his brutal crime.”
“This was a tragic ending to an abusive relationship,” said Police Chief Lanier. “In addition to killing the victim, the defendant also further victimized her family by attempting to defraud the family out of a large sum of money. We hope this sentencing offers the family some sense of solace that these acts did not go unpunished.”
According to the government’s evidence, on the morning of Aug. 12, 2011, Muth called 911 and reported that Ms. Drath was dead on the bathroom floor of their home in the 3200 block of Q Street NW. The District of Columbia Office of the Medical Examiner determined that Ms. Drath’s death was caused by strangulation and blunt force injuries.
On the evening of Aug. 11, 2011, the government’s evidence showed, Muth had been drinking. Witnesses indicated that Muth became progressively louder and somewhat belligerent during the course of the evening. A witness escorted Muth to the house on Q Street and saw him walking down the stairwell to the basement of his residence at approximately 10 p.m.
In the early morning hours of Aug. 12, 2011, a witness heard a woman’s faint cry and a man’s laugh emanating from inside the defendant’s home. Then, at approximately 7:56 a.m. on Aug. 12, 2011, Muth made the call to 911. When MPD officers arrived, there were no signs of forced entry into the house and nothing was taken or disturbed. According to the defendant, only he and Ms. Drath had keys to the house. Also according to the defendant, he and his wife were the only two people present in the home during the previous evening.
During the trial, the government presented evidence of a documented history of domestic violence by the defendant against his wife. In addition, Muth had made a number of statements over the years indicating a desire to kill her. By the summer of 2011, Ms. Drath had enough of the defendant’s abuse and was trying to end the marriage. Also, despite the fact that Ms. Drath specifically disinherited Muth in her will, he regularly pressured her for money. After killing the victim, and before her body was removed from the home, Muth presented a fraudulent document to the daughter of the victim demanding $200,000.
In announcing the sentence, U.S. Attorney Machen and Chief Lanier recognized the outstanding efforts of the detectives, evidence technicians, and officers who investigated the case from the Metropolitan Police Department. They expressed appreciation to the District of Columbia Department of Corrections for its assistance in the matter. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Erin O. Lyons, who assisted in the investigation; Paralegal Specialist Meridith McGarrity; Investigative Analyst Zachary McMenamin; former Investigative Analyst Lawrence Grasso; Criminal Investigator John Marsh; Litigation Technology Specialist Leif Hickling, and Maria Shumar and David Foster of the Victim/Witness Assistance Unit.
Finally, they commended the work of Assistant U.S. Attorneys Glenn Kirschner and Laura Bach, who tried the case.
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29 April 2014
“Karl Lee” Charged in Manhattan Federal Court with Using a Web of Front Companies to Evade U.S. SanctionsRead the Press Release
Li Fangwei, who is more commonly known by his alias “Karl Lee,” is charged with violating the International Emergency Economic Powers Act (IEEPA) by using United States-based financial institutions to engage in millions of dollars of U.S. dollar transactions in violation of economic sanctions that prohibited such financial transactions. In addition, Li Fangwei is also charged with conspiring to commit wire fraud and bank fraud, a money laundering conspiracy, two separate violations of IEEPA and two separate substantive counts of wire fraud, in connection with such illicit transactions. Li Fangwei, a national of the People’s Republic of China, is a fugitive.
The announcement was made today by Assistant Attorney General John P. Carlin of the Justice Department’s National Security Division, Preet Bharara, U.S. Attorney for the Southern District of New York, George C. Venizelos, Assistant Director in Charge for the FBI’s New York Field Office.
“ These charges are an important part of the ‘ all tools’ approach our government is taking against Li Fangwei to shut down and deny him the profit from his proliferation activities,” said Assistant Attorney General Carlin. “This case is an outstanding example of multiple agencies working together to focus various enforcement efforts on the significant threat to our national security posed by such proliferation networks.”
“As alleged, Li Fangwei has used subterfuge and deceit to continue to evade U.S. sanctions that had been imposed because of his illicit trade in prohibited materials with Iran,” said U.S. Attorney Bharara. “Previously having been exposed as a violator of those sanctions, Li spun a web of front companies to carry out prohibited transactions essentially in disguise. He now stands charged with serious crimes, and millions of his dollars have been seized. It is the hope of this Office not only that Li’s banned commerce cease once and for all, but that he be apprehended and brought before the bar of American justice.”
“Whether motivated by greed or otherwise, Li Fangwei allegedly ignored sanctions imposed by the United States Government and hid behind front companies he developed to engage in a series of illegal transactions, including attempts to acquire ‘dual use’ items on behalf of Iran-based entities,” said Director in Charge Venizelos. “IEEPA makes it a crime to willfully violate U.S. sanctions on designated countries such as Iran. Individuals and companies who evade U.S. sanctions and misuse our banking system to further their illegal activity not only undermine the integrity of our financial markets but also threaten U.S. National Security interests. The FBI is committed to ensuring that strategically important goods and technology, particularly those that could be used in the production or delivery of weapons of mass destruction, do not end up in the wrong hands.”
According to the superseding indictment previously filed in Manhattan federal court and other court documents: Li Fangwei controls a large network of industrial companies based in eastern China, one of which is LIMMT Economic and Trade Company Ltd. (LIMMT). Over the years, Li Fangwei’s companies have done millions of dollars of business with Iran. This business has included selling to Iranian entities various metallurgical goods and related components that are banned for transfer to Iran by, among others, the United Nations, because the items are controlled by the Nuclear Supplier’s Group (a multinational group that maintains “control lists,” which identify nuclear-related dual-use equipment, material and technology). Li Fangwei has been, among other things, a long-time supplier to Iran’s Defense Industries Organization and Iran’s Aerospace Industries Organization. In addition, Li Fangwei has been a principal contributor to Iran’s ballistic missile program, through China-based entities that have been sanctioned by the United States.
In light of his supply of restricted items to Iran, the United States has imposed targeted sanctions on both Li Fangwei and LIMMT. Specifically, the United States Department of the Treasury’s Office of Foreign Asset Controls (OFAC) publicly added LIMMT (in 2006) and Li Fangwei (in 2009) to its List of Specially Designated Nationals and Blocked Persons (SDN List). By virtue of their inclusion on the SDN List, Li Fangwei and LIMMT were effectively precluded from conducting any business within the United States without first obtaining a license or authorization from OFAC. Neither Li Fangwei nor LIMMT has sought such a license or authorization.
The above-referenced restrictions have forced Li Fangwei to operate much of his business covertly. In response to United States sanctions, Li Fangwei has built an outsized network of China-based front companies to conceal his continuing participation, and LIMMT’s continuing participation, in sanctioned activities. The front companies are listed in Exhibit A to the superseding indictment. As shown in Exhibit A, many of those front companies have used the same address as LIMMT, or a close variant thereof.
During the period from 2006 through to the present, Li Fangwei has used front companies to engage in more than 165 separate U.S. dollar transactions, with a total value in excess of approximately $8.5 million dollars. Included in those illicit transactions have been transactions involving sales to U.S. companies and sales of merchandise by Li Fangwei to Iran-based companies utilizing the U.S. financial system. Li Fangwei also attempted to acquire on behalf of Iran-based entities so-called “dual use” items from the United States, China and other countries that could be used in the production of weapons of mass destruction and/or devices used to deliver weapons of mass destruction.
Additionally, the U.S. Attorney’s Office and the FBI announced the seizure of over $6,895,000 in funds attributable to the Li Fangwei front companies, and the filing of a civil complaint seeking the forfeiture of those funds to the United States. The seized funds are substitutes for money held by Li Fangwei’s front companies at banks in China, and were seized from accounts at U.S. banks held in the name of foreign banks used by these front companies to conduct U.S. currency transactions (the correspondent accounts). The funds were seized pursuant to seizure warrants issued on Dec. 18, 2013, and April 25, 2014. The $6,895,000 represents funds used by the Li Fangwei front companies to engage in transactions that violate the U.S. sanctions laws and thus are subject to forfeiture. There are no allegations of wrongdoing by the U.S. or foreign banks that maintain these accounts. Because the funds used in those transactions are held in banks overseas, the United States is unable to seize the funds directly. However, pursuant to U.S. law, the United States can seize funds located in a bank’s correspondent accounts in the United States if there is probable cause to believe that funds subject to forfeiture are on deposit with that bank overseas. Based on this provision and others, the seizure warrants were executed. These funds were transferred to a seized asset account maintained by the United States Marshals Service pending resolution of the forfeiture action.
Based on information developed in the course of the FBI’s investigation into Li Fangwei that forms the basis of the superseding indictment, OFAC today is adding eight additional front companies used by Li Fangwei to its List of Specially Designated Nationals and Blocked Persons.
Finally, the United States Department of Commerce announced today the addition of nine China-based suppliers of Li Fangwei to its Entity List.
The Superseding Indictment charges Li Fangwei with seven separate offenses:· Count One: Conspiracy to violate the International Emergency Economic Powers Act;
· Counts Two and Three: Substantive violations of the International Emergency Economic Powers Act;
· Count Four: Money laundering conspiracy;
· Count Five: Conspiracy to commit wire fraud and bank fraud; and
· Counts Six and Seven: Wire fraud.
If convicted, Li Fangwei faces a maximum sentence of 20 years in prison on each of Counts One through Four and Counts Six and Seven, and 30 years in prison on Count Five. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Additional efforts directed at Li Fangwei and his network were announced today by the U.S. Department of State’s Transnational Organized Crime Rewards Program, Department of Treasury and the Department of Commerce.
The charges contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.Worley Man Pleads Guilty to Assaulting Man with A Dangerous WeaponRead the Press Release
COEUR D’ALENE – Andrew Hunter Peone, 25, of Worley, Idaho, pleaded guilty today in United States District Court to assault with a dangerous weapon, U.S. Attorney Wendy J. Olson announced. Peone was indicted on January 22, 2014.
According to the plea agreement, Peone admitted that on August 22, 2013, he assaulted a man with a knife. Peone cut the man several times, resulting in lacerations to the victim’s arm and hands.
Sentencing is set is set for July 21, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Coeur d’Alene.
The case was investigated by the Federal Bureau of Investigation and Coeur d’Alene Tribal Police.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce violence in Idaho.
West Haven Man Sentenced to 46 Months in Federal Prison for Possessing Stolen FirearmsRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that EDWIN CHARON, 30, of West Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 46 months of imprisonment, followed by three years of supervised release, for possessing stolen firearms. CHARON also was ordered to pay a $7,500 fine.
According to court documents and statements made in court, on November 8, 2012, Elliot Perez stole three boxes containing a total of 111 firearms from the Smith & Wesson manufacturing plant in Springfield. Perez and his cohort, Michael Murphy, were arrested later that month on charges stemming from the theft, but not before they had sold the majority of the firearms into the illicit gun market in and around Bridgeport.
On April 2, 2013, the Bridgeport Police Department arrested an individual who possessed one of the stolen Smith & Wesson handguns. The investigation revealed that the individual had purchased the gun from CHARON in a storage locker in West Haven to which CHARON had access. A subsequent search of the storage locker revealed four handguns, including another of the stolen Smith & Wesson handguns, and a stolen Ruger 9mm pistol loaded with a high capacity magazine and containing 17 rounds of ammunition.
CHARON was previously convicted of felony offenses, and it is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
CHARON has been detained since his arrest on April 24, 2013. On January 15, 2014, he pleaded guilty to one count of possession of firearms by a previously convicted felon.
Perez and Murphy have pleaded guilty and await sentencing.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bridgeport Police Department and the Stratford Police Department. The case is being prosecuted by Assistant U.S. Attorney Rahul Kale.
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(203) 821-3722 [email protected]Virginia Beach Man Sentenced to 36 Years for Armed Bank RobberiesRead the Press Release
RICHMOND, Va. – Carlos McClammy, 21, of Virginia Beach, Va., was sentenced today to 432months in prison for his role in the robbery of six financial institutions in Virginia. Previously, McClammy’s co-conspirators, Taleak Harris and Jaquan Douglas, pled guilty to participating in a total of 11 armed robberies in the Eastern District of Virginia. On October 2, 2013, Harris was sentenced to 108 months’ imprisonment. On December 17, 2013, Douglas was sentenced to 432 months’ imprisonment.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office; Bruce Jones, Northampton County Commonwealth Attorney; William W. Davenport, Chesterfield County Commonwealth Attorney; Lyndia P. Ramsey, Sussex County Commonwealth Attorney; and Colin Stolle, City of Virginia Beach Commonwealth Attorney, made the announcement after sentencing by United States District Judge Henry E. Hudson.
McClammypled guilty on January 28, 2014, admitting to his participation in the March 13, 2012 robbery of the SunTrust Bank, located in Nassawadox, Virginia; the March 27, 2012 robbery of the Bank of Southside Virginia, located in Jarratt, Virginia; the April 3, 2012 robbery of the Central Virginia Bank, located in Midlothian, Virginia; the April 19, 2012 robbery of the BB&T Bank, located in Wakefield, Virginia; the April 23, 2012 robbery of the Bank of Southside Virginia, located in Stony Creek, Virginia; and the July 10, 2012 robbery of the Chartway Federal Credit Union, located in Virginia Beach, Virginia. During the July 20, 2012 robbery, McClammy discharged his firearm inside the credit union in an effort to intimidate the bank teller.
This case was investigated by the Federal Bureau of Investigation, the Northampton Sheriff’s Office, the Chesterfield County Police Department, the Sussex County Sheriff’s Office, and the City of Virginia Beach Police Department. Assistant United States Attorneys Erik S. Siebert and Peter Duffey 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.
Virginia Beach Man Charged with Distribution of HeroinRead the Press Release
NORFOLK, Va. – Stephen Ron Martin II, 20, of Virginia Beach, Va., was charged with distribution of heroin resulting in death in a criminal complaint that was filed on April 21, 2014 and unsealed today.
Dana J. Boente, United States Attorney for the Eastern District of Virginia, Acting Special Agent in Charge Katrina Berger, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, and Police Chief Jim A. Cervera, Virginia Beach Police Department, made the announcement.Martin faces a mandatory minimum of 20 years in prison and maximum penalty of life in prison if convicted.
According to the criminal complaint, on October 27, 2013, Martin distributed heroin to Steven Bradley Nichols. On October 29, 2013, Virginia Beach Police found an unresponsive Nichols while they were conducting a well-being check that had been called into 9-1-1. Police also found evidence of recent heroin use in plain view inside Nichols’ apartment. A depressed syringe was found on top of a desk within an arm’s length of Nichols’ body. A needle mark was on Nichols’ arm. Two plastic bags, one of which was open, containing off-white powder were found on the kitchen counter. The bags were later tested and found to contain heroin. An autopsy confirmed that Nichols had ingested heroin and subsequently died as a result of acute heroin intoxication.
This case was investigated by HSI Norfolk and the Virginia Beach Police Department. Assistant United States Attorney Darryl Mitchell is prosecuting the case on behalf of the United States.
Criminal complaints are only charges and not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty.
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.United States Attorney Edward L. Stanton III Names Brian K. Coleman as Civil Rights Unit ChiefRead the Press Release
Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, has named Assistant U.S. Attorney Brian K. Coleman to lead the district’s Civil Rights Unit.
U.S. Attorney Stanton created the dedicated Civil Rights Unit in February 2011, in order to enhance the ability of the U.S. Attorney’s Office to enforce federal civil rights laws in the Western District of Tennessee. The Civil Rights Unit prosecutes the full spectrum of federal civil rights crimes, including official misconduct, law enforcement corruption, human trafficking, and hate crimes. In addition, fair housing, fair lending, Americans with Disability Act, and Uniform Services Employment and Re-employment Rights Act cases continue to remain a priority of the district. The Civil Rights Unit has received national acclaim for its dedicated efforts, including prominent recognition from U.S. Attorney General Eric Holder and the Department of Justice for its distinguished work in combatting human and sex trafficking.
Mr. Coleman has served as an Assistant U.S. Attorney in the Western District of Tennessee since 2008, specializing in public corruption and civil rights cases, including cases involving interstate stalking and criminal activities by members of law enforcement. As Unit Chief, Mr. Coleman will lead the implementation of the Unit’s strategic priorities and manage relationships with key federal, state, and local law enforcement partners and community stakeholders.
“As a state and federal prosecutor for over 11 years, Brian Coleman brings absolute professionalism and a tenacious desire for justice to every case he handles,” said United States Attorney Edward L. Stanton III. “I am confident that under his capable leadership, this District’s Civil Rights Unit will continue to work diligently to ensure that all Americans enjoy the rights and freedoms the Constitution guarantees them.”
Former Unit Chief Larry Laurenzi has been appointed to serve as First Assistant United States Attorney in the Western District of Tennessee.United States Attorney Announces Settlement with Bank Accused of Consumer FraudRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that United States District Judge Terrence W. Boyle signed a consent order resolving a civil lawsuit between the United States and Four Oaks Bank and Trust of North Carolina. The civil complaint alleged that the bank facilitated an illegal scheme to take money from consumers’ bank accounts.
"The integrity of our banking system is crucial to the protection of both consumers and businesses, and we will do whatever is necessary to ensure that banks, payday lenders and others using the banking system follow the rules," said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker.
Advocates at the National Consumer Law Center (NCLC) stated, “The Four Oaks case is a perfect example of what the Justice Department should be doing: cracking down on banks that turn a blind eye to illegal and fraudulent conduct and facilitate illegal payday lending, Ponzi schemes, money laundering for illegal gambling operations, and consumer fraud,” said Lauren Saunders, NCLC’s associate director.
The Complaint alleged that, from at least July 2009 through 2013, Four Oaks Bank knew of, or was deliberately ignorant to, the use of its accounts and access to the national banking system to further a scheme to defraud consumers. Four Oaks Bank, like all other banks, is obligated pursuant to federal statutes and regulations to have effective procedures to prevent the bank from providing to companies engaged in unlawful activity access to the national banking system. According to the Complaint, Four Oaks Bank failed to comply with these and other obligations and, as a consequence, facilitated a wire fraud scheme in which millions of unauthorized debit transactions were charged against consumers' bank accounts.
According to the department's Complaint, Four Oaks Bank worked with a Texas-based third-party payment processor, which is a "middle man" between a bank and a merchant in a financial transaction. Payment processors provide to a wide variety of merchants access to the national payment system. At a merchant's direction, a payment processor will originate a debit transaction against an individual consumer's bank account, receive the consumer's money into its own bank account and transmit the money to its merchant's client. In this case, Four Oaks Bank provided payment system access to a Texas-based third-party payment processor, which in turn provided that access to fraudulent merchants.
According to the Complaint, Four Oaks Bank permitted the Texas-based third-party payment processor to originate more than 9.8 million debit transactions, for a total of more than $2.4 billion, against consumers' bank accounts. The Justice Department alleged that Four Oaks Bank ignored guidance by federal bank regulators concerning the risks associated with providing payment system access to a third-party payment processor that serviced fraudulent merchants. Allegedly, these third-party payment processor's merchants included large numbers of Internet payday lenders that engaged in fraud against borrowers.
To resolve the civil action, Four Oaks Bank and the Department of Justice entered into a Consent Order, in which Four Oaks Bank will be required to pay $1 million to the U.S. Treasury as a civil monetary penalty and to forfeit $200,000 to the U.S. Postal Inspection Service's Consumer Fraud Fund. Four Oaks Bank also will be required to comply with a series of measures to prevent it from ever again permitting fraudulent merchants access to the national payment system. Specifically, Four Oaks Bank will be permanently prohibited from providing banking services to any third-party payment processor that serves high risk merchants absent a strict regime of prior and ongoing investigation and monitoring designed to prevent future consumer fraud. Four Oaks Bank also will be required to cooperate fully in other civil and criminal investigations.
This case was prosecuted jointly by the Department of Justice Consumer Protection Branch and the United States Attorney for the Eastern District of North Carolina. The investigation is part of the Consumer Protection Branch's initiative to identify and prosecute banks and payment processors that facilitate financial fraud in the national payment systems, an effort in which the U.S. Postal Inspection Service provides substantial investigative support.
Two Members of International Narcotics Trafficking Conspiracy Plead Guilty in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that TCHAMY YALA and PAPIS DJEME, citizens of Guinea Bissau, pled guilty yesterday and today, respectively, in Manhattan federal court to narcotics importation conspiracy charges. YALA and DJEME were arrested on April 2, 2013, by the Drug Enforcement Administration’s (DEA) Special Operations Division, Bilateral Investigative Unit Narco-Terrorism Group and the DEA Foreign-deployed Advisory Support Team (FAST) off the coast of West Africa while on board a vessel under DEA control in international waters. They were transferred thereafter to the custody of the United States. YALA and DJEME pled guilty before U.S. District Judge Richard M. Berman.
Manhattan U.S. Attorney Preet Bharara said: “International drug traffickers pose a serious threat to the United States and its citizens. As this case makes clear, we are committed to halting the flood of narcotics from overseas into our nation, and to working with all of our law enforcement partners, both here and abroad, in bringing the exporters of this poison to justice.”
According to the Indictment previously unsealed in this case:
Beginning in the summer of 2012, YALA, DJEME, and a co-defendant engaged in a series of recorded meetings in Guinea-Bissau with confidential sources (the “CSs”) working with the DEA who purported to be representatives and/or associates of South American-based narcotics traffickers.
In an early meeting in which the defendants discussed the shipment of ton-quantities of cocaine from South America to Guinea Bissau by sea, a co-conspirator noted that the Guinea Bissau government was weak in light of the recent coup d’etat and that it was therefore a good time for the proposed cocaine transaction. In further meetings, YALA and DJEME agreed to assist the CSs by receiving a two-ton load of cocaine that would be transported to Guinea-Bissau by boat and stored in Guinea Bissau for distribution to Europe and the United States. For example, on November 17, 2012, YALA, DJEME and a co-conspirator met with two of the CSs in Guinea Bissau and discussed importing 1,000 kilograms of cocaine into the United States. Also during the meeting, a co-conspirator offered to utilize a company that he owned to facilitate the shipment of cocaine out of Guinea Bissau. YALA and a co-defendant agreed to receive a fee of $1,000,000 per 1,000 kilograms of cocaine received in Guinea Bissau.
YALA, 42, and DJEME, 30, each pled guilty to one count of conspiring to distribute cocaine, knowing and intending that the cocaine would be imported into the United States. Each defendant faces a maximum sentence of life in prison. YALA is scheduled to be sentenced by Judge Berman on September 4, 2014. DJEME is scheduled to be sentenced by Judge Berman on September 23, 2014. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
The charges against YALA and DJEME were the result of the extraordinary investigative efforts of DEA’s Special Operations Division. Mr. Bharara also praised the seamless, coordinated work of FAST, the DEA Lisbon Country Office, and the DEA Bogota Country Office, as well as the U.S. Department of Justice Office of International Affairs, and the U.S. State Department.
This case is being handled by the Office's Terrorism and International Narcotics Unit. Assistant United States Attorney Aimee Hector is in charge of the prosecution.
U.S. v. Jose Americo Bubo Na Tchuto et al. Indictment
Two Elizabeth, N.J., Women Each Sentenced to Prison for Operating Counterfeit Check SchemeRead the Press Release
NEWARK, N.J. – Two Elizabeth, N.J., women were each sentenced today to prison for conspiring to commit bank fraud by depositing more than half a million dollars in counterfeit checks into different TD Bank accounts, U.S. Attorney Paul J. Fishman announced.
Latisha White, 29, was sentenced to 26 months in prison and Synethia Bland, 30, was sentenced to 24 months in prison. Both women previously pleaded guilty before U.S. District Judge William J. Martini to one count of bank fraud conspiracy in the superseding indictment against them. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From October 2009 to May 2012, White created counterfeit checks on her computer using commercially available check-writing software. White and Bland deposited the counterfeit checks into multiple accounts at TD Bank. Bland recruited others to use their own accounts or open new accounts to deposit the counterfeit checks.
White and Bland employed a variety of methods to withdraw the fraudulent funds, including making ATM cash withdrawals, submitting cash withdrawal slips and making debit card purchases on merchandise and postal money orders.
White and Bland each admitted they arranged the deposit of more than 150 counterfeit checks into more than 120 different bank accounts. They also each admitted that they deposited counterfeit checks that totaled more than $500,000.
In addition to the prison term, Judge Martini sentenced White and Bland to each serve three years of supervised release and to forfeit $225,000 each. Restitution is still being determined.
U.S. Attorney Fishman credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge James Mottola; postal inspectors, under the direction of Inspector in Charge Maria L. Kelokates; and investigators at the Union County Prosecutor's Office, under the direction of Acting Prosecutor Grace H. Park, and the Morris County Prosecutor's Office, under the direction of Acting Prosecutor Fredric M. Knapp.
The government is represented by Assistant U.S. Attorney Andrew S. Pak of the U.S. Attorney’s Office Criminal Division in Newark.14-146
Defense counsel:
Bland: Rubin Sinins Esq., Springfield, N.J.
White: Ruth Liebesman Esq., Paramus, N.J.Two Convicted Felons Sentenced to Federal Prison for Possession of Methamphetamine and FirearmsRead the Press Release
U.S. Attorney’s Office and DEA announce more than 3 tons collected, breaking previous record by more than half a ton
CHARLESTON, W.Va. – Two men who possessed methamphetamine and firearms were sentenced today to federal prison after pleading guilty in January to federal drug trafficking charges, announced U.S. Attorney Booth Goodwin. Richard Milton Hudson Riggal, 44, of Zephyrhills, Florida was convicted of conspiracy to distribute methamphetamine and sentenced to fifteen years and 8 months on the conspiracy charge and an additional two years for violating his federal supervision. Howard Leon Lykins, II, 49, of Charleston, West Virginia was convicted of maintaining a residence for drug purposes and sentenced to nine years.
In July of 2013, detectives from the Metropolitan Drug Enforcement Network Team (MDENT) executed a search warrant at Lykins’ Stone Acres Drive residence in Charleston. Riggall was at the house when officers arrived. Police searched Riggall’s luggage and discovered methamphetamine, digital scales, two pistols (one of which was stolen), and $41,490 in cash. Police seized additional methamphetamine, firearms, and money from elsewhere in Lykins’ residence.
Police executed a second search warrant at another Kanawha County residence where they seized more than 900 grams of high-purity “Ice” methamphetamine which Riggall transported from Florida to West Virginia for distribution. Both Riggall and Lykins admitted distributing approximately seven pounds of methamphetamine in the months leading up to July 2013.
Riggall had been previously convicted of several felonies including burglary, grand theft, operation of a chop shop, and distribution of marijuana. In July of 2013, when he was arrested on the drug conspiracy charge, Riggall was still on federal supervision for a 2006 conviction for being a felon in possession of a firearm. Lykins had been previously convicted in 2007 in the Circuit Court of Kanawha County for possession with intent to distribute marijuana.
MDENT and the Drug Enforcement Administration (DEA) Task Force conducted the investigation. Assistant U.S. Attorney Joshua Hanks is in charge of the prosecution. The sentence was imposed by United States District Judge John T. Copenhaver, Jr.