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Thursday 6 March 2014
Two Former Puerto Rico Law Enforcement Officers Sentenced for Scheme to Smuggle Heroin to InmatesRead the Press Release
A former state marshal and a correctional officer in Puerto Rico were sentenced today for attempting to smuggle heroin to inmates in exchange for payment, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.
Joel Torres-Velazquez, 49, of Guánica, Puerto Rico, was sentenced to serve 37 months in prison, followed by three years of supervised release, by U.S. District Judge Francisco A. Besosa of the District of Puerto Rico. He pleaded guilty on Nov. 6, 2013, to a one-count indictment charging him with attempt to distribute a controlled substance.
Jessica Moreno-Alicea, 39, of Ponce, Puerto Rico, was sentenced to serve 37 months in prison, followed by four years of supervised release, by U.S. District Judge Daniel R. Dominguez of the District of Puerto Rico. She pleaded guilty on Dec. 6, 2013, to a one-count indictment charging her with attempt to distribute a controlled substance.
Torres-Velazquez was paid $600 to deliver a package of heroin to an inmate at the Ponce Superior Court, where Torres-Velazquez worked as a state marshal. On March 30, 2011, Torres-Velazquez met with an undercover agent, who he believed was a drug dealer, and was given what he believed to be a package of heroin. He delivered the purported heroin to an inmate in the courthouse that same day.
Moreno was paid $800 to deliver a package of heroin to an inmate at the Ponce State Penitentiary, where Moreno worked as a correctional officer. On Feb. 3, 2011, Moreno met with an undercover agent, who she believed was a drug dealer, and was given what she believed to be heroin. She delivered the purported heroin to an inmate in the prison on Feb. 8, 2011.
The case was investigated by the FBI’s San Juan Division. The case was prosecuted by Assistant U.S. Attorney Hector Ramirez-Carbó of the District of Puerto Rico and Trial Attorney Menaka Kalaskar of the Criminal Division’s Public Integrity Section.Two Convicted in Multi-Million Dollar Advance Fee and Alaskan Gold Mine Investment SchemesRead the Press Release
Brad Russell was convicted today by a federal jury in Brooklyn on all three counts of the indictment for defrauding developers and their clients of more than $9 million through an advance fee scheme and for defrauding investors through an Alaskan gold mine investment scheme. Kristofor Lange, the Vice President of Black Sand Mine, Inc. (“BSMI”), was also convicted on both counts charging him for his role in the gold mine investment scheme.1 The jury’s verdict followed a six-week trial in United States District Court held before the Honorable Dora L. Irizarry. The trials of co-defendants William Lange and Frank Perkins are scheduled to take place on September 22, 2014.2
The guilty verdicts were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Philip R. Bartlett, Inspector in Charge, New York Division, U.S. Postal Inspection Service (USPIS), and W. Jay Abbott, Acting Special Agent in Charge, Federal Bureau of Investigation, Seattle Field Office (FBI).
“Through lies and deceit, the defendants took advantage of a national tragedy and unsuspecting investors and stole millions of dollars so they could line their own pockets. Their representations and assurances were not worth the price of the paper used to print the loan documents and stock certificates. We will vigorously pursue and bring to justice those who would defraud the investing public,” stated United States Attorney Lynch. Ms. Lynch thanked the USPIS and the FBI for their hard work and dedication through the course of the investigation and prosecution. Ms. Lynch also extended her grateful appreciation to the United States Attorney’s Office for the Western District of Washington for their assistance in the case.
The evidence at trial established that Russell, together with others at Harbor Funding Group Inc. (“HFGI”), executed an advance fee scheme by targeting regions affected by Hurricane Katrina. Russell and his co-conspirators told land developers and their clients that HFGI had lenders and funds available to provide financing for their real estate projects. As a condition for financing, HFGI required its clients to place ten percent of the loan amount in an attorney escrow account. Contrary to their representations, HFGI did not have lenders or funds available to finance the loans and stole the deposit money placed in escrow. Russell was the loan processor at HFGI and prepared and maintained the loan documents and escrow agreements. Through this fraudulent scheme, Russell and his co-conspirators stole more than $9 million from approximately 300 individuals.
At trial, the government also proved that Russell and Kristofor Lange, together with others, also executed an investment scheme and induced investors to invest in BSMI through lies and deceit. BSMI claimed that it was going to mine gold and other precious metals on Sitkinak Island in Alaska. Through the use of in-person presentations, cold calls and “webinars,” Russell, Lange, and their co-conspirators, convinced investors to invest in BSMI by lying to them about the credentials of BSMI’s officers and directors, BSMI’s assets and liabilities, the intended use of investor funds, and by concealing their prior involvement in HFGI.
When sentenced by Judge Irizarry, Russell faces a sentence of up to 20 years’ imprisonment for wire fraud conspiracy for the HFGI scheme. Russell and Lange also face a sentence of up to 20 years’ imprisonment for securities fraud and a sentence of up to five years’ imprisonment for conspiracy for the BSMI scheme.
The government’s case is being prosecuted by Assistant United States Attorneys Winston M. Paes, David C. Woll, Jr. and Alixandra E. Smith.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
The Defendants:
BRAD A. RUSSELL
Age: 42
Residence: Gig Harbor, Washington
KRISTOFOR J. LANGE
Age: 30
Residence: Gig Harbor, Washington
E.D.N.Y. Docket No. 10-CR-968
__________________________________________________________________________
1 Kristofor Lange was not charged in the advance fee scheme.
2 The charges against the co-defendants William Lange and Frank Perkins are merely allegations, and they are presumed innocent unless and until proven guilty.
Titusville Police Officer Indicted for Participating in A Drug Deal While Carrying A FirearmRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Richard Irizarry (45, Viera) with attempting to aid and abet the distribution of cocaine, possessing a firearm in furtherance of the drug distribution, and using a telephone to facilitate the drug distribution. If convicted on all counts, Irizarry faces a minimum of 10 years, up to a maximum penalty of 40 years in federal prison. According to the indictment, Irizarry allegedly committed these offenses on or about January 19, 2014. Irizarry will make his initial appearance in federal court, in Orlando, at 1:30 p.m. today before United States Magistrate Judge Karla R. Spaulding.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Vincent A. Citro.
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Texas man Charged with Traveling to Missouri for Illicit Sex with ChildrenRead the Press Release
Project Safe Childhood
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Texas man has been charged in federal court with traveling to Missouri to engage in illicit sex with two minor sisters whose “father” (an undercover officer) he met online.
John Paul Christian, 40, of Texas, was charged in a criminal complaint that was filed in the U.S. District Court in Kansas City, Mo., on Wednesday, March 5, 2014.
According to an affidavit filed in support of the federal criminal complaint, a Kansas City Police Department detective created an undercover profile on an online social media site. Christian contacted him on Feb. 19, 2014, the affidavit says, and he told Christian that he had two daughters (11 and 15 years old) with whom Christian could have sex for $400. Christian allegedly replied that he would pay to have sex with both of them.
Christian sent a text message to the undercover officer, the affidavit says, informing him that he had purchased an 18-karat gold “Hello Kitty” necklace and earrings and an iPod as gifts for the girls. On Feb. 26, 2014, Christian allegedly sent a text message with details about the sexual acts he wanted to perform on the 11-year-old daughter. Christian allegedly asked about the 15-year-old daughter joining in as well, for a total of “$400 for both girls.”
On Feb. 28, 2014, Christian allegedly wired $200 to the undercover detective, which was half of the amount he was going to pay to have sex with the two sisters.
According to the affidavit, Christian said he was going to drive to Kansas City on Saturday, March 1, 2014, and texted updates of his travel during the day. (Law enforcement officers later found evidence in his hotel room that he had flown from Texas to Kansas City.)
At about 4:34 p.m. on Saturday, March 1, 2014, Christian sent a text message saying he had arrived in Kansas City and was at the airport, the affidavit says. The undercover detective provided an address and arranged for them to meet at a nearby apartment complex. Christian arrived in a taxi at about 8:10 p.m. and was arrested as he got out of the taxi.
When he was taken into custody, Christian was in possession of two bags. One of the bags contained a “Hello Kitty” backpack doll, two “Hello Kitty” underwear outfits for young girls, two pairs of young girls’ panties, two cans of Red Bull, rope necklaces, Q-Tips and a teal iPod Nano with headphones. The other bag contained an Acer Chromebook laptop computer with power cables, a Samsung flip phone, and a bottle of Astroglide lubricant.
When officers searched Christian’s hotel room, they found a notebook with what appears to be a letter written to the 15-year-old daughter. According to the affidavit, the letter details the various sex acts that Christian was going to be engaged in with the sisters. Christian allegedly wrote that he wanted to get the 15-year-old girl pregnant so that they could have a “little baby girl together” that they in turn would sexually molest.
Dickinson cautioned that the charge contained in this complaint 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 Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Tax Preparer Indicted for Preparing Returns with Fraudulent Claims and Filing Own False Tax ReturnsRead the Press Release
HONOLULU - A federal grand jury yesterday indicted Melanau Fohe Haiola, age 52, for preparing false tax returns for her clients and for failing to report income she earned. The indictment charges that Haiola, of Kahuku, prepared 17 Federal Income Tax returns that fraudulently claimed the American Opportunity Credit, a deduction for undergraduate education expenses; personal property rental expense deductions; or medical, dental, or employee expenses. In addition, the indictment charges that Haiola filed false tax returns for herself for the 2009 and 2010 tax years by underreporting her income by a total of $114,315.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to the indictment, Haiola, as owner and operator of Nau’s Tax Preparation, personally prepared, and supervised others in the preparation of, hundreds of federal income tax returns, many of which claimed the American Opportunity Credit and the personal property rental expense deduction when neither was legally applicable.
If convicted, Haiola faces up to three years in prison and a fine of up to $250,000 for each of the 19 charges. The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The prosecution resulted from an investigation conducted by the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Marshall Silverberg.
Staten Island, N.Y., Tax Preparer Sentenced to Prison for Preparing False Tax ReturnsRead the Press Release
Ranti Azeez-Taiwo of Staten Island, N.Y., was sentenced to serve 18 months in prison to be followed by one year of supervised release, the Justice Department and Internal Revenue Service (IRS) announced today. Azeez-Taiwo was also ordered to pay $24,802 in restitution. On Sept. 30, 2013, a federal jury in the Eastern District of New York convicted Azeez-Taiwo of 16 counts of aiding or assisting in the preparation of false income tax returns for clients.
According to evidence introduced at trial, the defendant operated a tax preparation business called Lot Associates Inc., located in Staten Island. Evidence showed that the defendant aided, advised and prepared false individual income tax returns for clients during the 2006 through 2010 tax years. These false individual income tax returns claimed unreimbursed employee expenses and charitable donations that taxpayers testified the defendant claimed on their returns without the taxpayers’ knowledge. Several taxpayers testified they paid fines and interest to the IRS as a result of the false income tax returns Azeez-Taiwo had prepared and submitted to the IRS.
This case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Mark Kotila and Mark McDonald of the Tax Division.
Statement of United States Attorney Carmen M. OrtizRead the Press Release
United States vs. John J. O’Brien, et al.
1:12cr40026We are disappointed at the disruption and delay of this trial that has been caused by the defense's untimely recusal motion. The Court's rulings throughout this case have been well-reasoned and based on the law. We nevertheless remain committed to bringing this case to trial as soon as possible. This case must move forward without delay, not only because it is in the interest of justice to have that happen, but because we must instill public confidence in the criminal justice system and limit the continued expense of taxpayer dollars.
Springfield Man Pleads Guilty to Trafficking Counterfeit GoodsRead the Press Release
BOSTON – A Springfield man was convicted today in U.S. District Court in Springfield of selling counterfeit goods.
Josue Rivera, 38, pleaded guilty before U.S. District Judge Michael A. Ponsor to trafficking in counterfeit and unauthorized goods. As part of his plea agreement, Rivera agreed to pay $29,000 in restitution and forfeiture of two bank accounts worth approximately $79,000.
Rivera operated a retail merchandise business in Springfield called Main Source. From April 11 until June 25, 2012, Rivera stocked and sold counterfeit merchandise, including clothing, footwear, and accessories that bore a variety of brand names and trademarks, including Gucci, Nike, Coach, Chanel, and Oakley. Rivera also stocked and sold unauthorized reproductions of digital video discs of movies and compact discs of music.
United States Attorney Carmen M. Ortiz; Bruce Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston, and Springfield Police Commissioner William Fitchett, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Steven H. Breslow of Ortiz’s Springfield Branch Office.
Spencer Man Sentenced for Unlawful Taking of WildlifeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Spencer, South Dakota, man convicted of Unlawful Taking of Wildlife was sentenced on March 3, 2014, by U.S. Magistrate Judge John E. Simko.
Dennis L. Rowley, age 63, was sentenced to 3 years of probation. His sentence also included a $3,000 fine, $3,050 restitution, and the loss of hunting privileges for 3 years.
An information was filed against Rowley on July 24, 2013, charging him with Unlawful Taking of Wildlife. He was found guilty of the charge at a trial held on January 27, 2014, before the Honorable Judge Simko.
In June of 2012, a person taking photographs of Double-crested Cormorants nesting on an island on a lake near Spencer called the South Dakota T.I.P.S. Hotline to report a person shooting the cormorants. Conservation officers with the South Dakota Game, Fish and Parks Department learned that the shooter was Dennis Rowley. They went to the island and found 61 dead cormorants.
This case was investigated by the South Dakota Game, Fish and Parks, and the U.S. Fish and Wildlife Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Sioux Falls Woman Sentenced in Embezzlement CaseRead the Press Release
United States Attorney Brendan V. Johnson announced that a Sioux Falls, South Dakota, woman convicted of Bank Embezzlement was sentenced on March 6, 2014, by U.S. District Judge Karen E. Schreier.
Kellie Cunningham, age 28, was sentenced to time served (one day) and 3 years of supervised release. She was also ordered to make restitution in the amount of $5,600.
Cunningham was indicted for Bank Embezzlement by a federal grand jury on August 13, 2013. She pled guilty on December 4, 2013.
Between May 2012 and March 2013, Cunningham was employed as a bank teller. During this timeframe, she stole money from her teller drawer for personal use and took steps to conceal the theft.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Shreveport Man Sentenced to 24 Months in Prison for Failing to Appear for SentencingRead the Press Release
SHREVEPORT, La. –United States Attorney Stephanie A. Finley announced today thatLeo Cortez Vinson Jr., 40, of Shreveport, was sentenced Monday by U.S. District Court Judge Elizabeth Foote, to 24 months in prison with one year of supervised release for failing to appear for sentencing on a tax fraud charge.
According to evidence presented at the guilty plea on February 20, 2014, Vinson pleaded guilty in September of 2011 to filing fraudulent tax returns and was allowed to remain free on bond. He failed to appear for sentencing on November 30, 2011. A warrant was issued for Vinson’s arrest, and he was arrested on October 3, 2013 in South Dakota. Vinson had been traveling on a bus headed for Seattle, Washington.
On November 14, 2013, Vinson was sentenced by U.S. District Court Judge Tom Stagg, to 36 months in prison and one year of supervised release for one count of making false and fraudulent statements to the Internal Revenue Service (IRS). He was also ordered to pay $6,958 in restitution.. The failure to appear and the tax fraud prison terms will run consecutively for a total of 60 months in prison. The supervised release terms will run concurrently.
According to evidence presented at the guilty plea on September 1, 2011, Vinson prepared 22 Form 1040 tax returns containing false information in early 2009 for tax year 2008. He claimed $91,141 in refunds, but received $79,396 from the IRS. Vinson received between $1,000 and $1,500 per tax return on average. He would recruit inmates from different prisons to supply Social Security Numbers for the false returns and paid them $100 for their information.
“Tax fraud has consequences,” Finley stated. “The defendant thought he could run from justice, but because of the hard work of the prosecutor and law enforcement officers, he was apprehended. We will continue to prosecute those who try to manipulate the system for their gain.”
The IRS, U.S. Marshals Service, and U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the cases.
Seven Individuals Sentenced for Federal Supervised Release and Probation ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of February, seven individuals had their supervised release or probation revoked for violating terms and conditions imposed by the United States District Court.
ELKINS DIVISION REVOCATIONS (Chief Judge John Preston Bailey)
ARCHIE RAY ARBOGAST, age 37, of Dunmoore, West Virginia, was sentenced to 24 months in prison and three years of supervised release for committing another crime; possession of a controlled substance; frequenting places where controlled substances are illegal sold, used, distributed or administered; and, associating with persons engage in criminal activity. ARBOGAST was originally sentenced on May 8, 2013, to 5 years probation for possession of material used in the manufacture of methamphetamine. ARBOGAST was remanded to the custody of the United States Marshal pending designation to a Federal institution.
WHEELING DIVISION REVOCATIONS (Judge Frederick P. Stamp, Jr.)
BRYAN KNORR, age 36, of Clarksburg, West Virginia, and formerly of Wheeling, was sentenced to 18 months in prison for testing positive for the use of marijuana and cocaine. KNORR was originally sentenced on March 7, 2011, to 21 months in prison and six years of supervised release for the distribution of ecstasy within 1,000 feet of a protected location. KNORR was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MICHAEL SHANE HENRICK, age 35, of Newell, West Virginia, was sentenced to 6 months in prison and 12 months of supervised release for committing additional offenses of shoplifting, domestic battery, failure to report to the United States Probation Officer and absconding from supervision. HENRICK was originally sentenced on June 24, 2008, to 32 months in prison and three years of supervised release for the distribution of heroin. HENRICK was remanded to the custody of the United States Marshal pending designation to a Federal institution.
SCOTT NALE, age 44, of Weirton, West Virginia, was sentenced to forty-five days in prison for failure to update sex offender registration and unauthorized contact with a minor child. NALE was originally sentenced on August 21, 1995, to 168 months in prison and three years of supervised release for car jacking, use and carry of a firearm in relation to a crime of violence, and felon in possession of a firearm. NALE will self-report to the designated Federal institution on March 14, 2014.
MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
DEVON GORDON, age 23, of Martinsburg, West Virginia, was sentenced to 22 months in prison for associating with known felons, being untruthful with probation officer and fleeing from the Martinsburg Police. GORDON was originally sentenced on July 18, 2011, to 24 months in prison and three years of supervised release for possession with intent to distribute crack cocaine. GORDON was remanded to the custody of the United States Marshal pending designation to a Federal institution.
JOMO KENYATTA MORRIS, age 24, of Martinsburg, was sentenced to 10 months in prison and 12 months of supervised release for testing positive for the use of marijuana and cocaine, being untruthful with probation officer and being arrested for disorderly conduct and open container. MORRIS was originally sentenced on December 11, 2009, to 37 months in prison and three years of supervised release for possession with intent to distribute crack cocaine. MORRIS was remanded to the custody of the United States Marshal pending designation to a Federal institution.
LATEEF JABRALL MCGANN, age 23, of Martinsburg, was sentence to 7 months in prison and 29 months of supervised release for testing positive for the use of marijuana, being untruthful with probation officer and being arrested for fleeing from the Martinsburg police. MCGANN was originally sentenced on December 10, 2009, to 57 months in prison and three years of supervised release for possession with intent to distribute crack cocaine and felon in possession of a firearm. MCGANN was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the revocation hearings by Assistant U.S. Attorneys John C. Parr, Randolph J. Bernard, Robert H. McWilliams, Jr., Stephen D. Warner and Paul T. Camilletti.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Sentencing for February 27 - March 6, 2014Read the Press Release
Randy W. Ayers, 36, of Gillette, Wyoming, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 6, 2014, for being a felon in possession of a firearm. Ayers was arrested in Gillette, Wyoming. He received 40 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Victor David Villagomez-Duarte, 21, of Denver, Colorado, was sentenced by Federal District Court Judge Scott W. Skavdahl on February 27, 2014, for conspiracy to possess with intent to distribute, and to distributing at least 200 grams of a mixture or substance containing a detectable amount of methamphetamine and for distribution of methamphetamine and aiding and abetting. Villagomez-Duarte was arrested in Albany County, Wyoming. He received 46 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $200.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration.
Sacramento Woman Gets 18 Months in Prison for Conspiracy to Traffic in Counterfeit Viagra and Cialis via CraigslistRead the Press Release
SACRAMENTO, Calif. — Susan Yvonne Eversoll, 46, of Sacramento, was sentenced this morning by U.S. District Court Judge Troy L. Nunley to 18 months in prison, to be followed by three years of supervised release and a $5,000 fine, for conspiring to traffic in counterfeit goods, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Hi-Tech Crimes Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
According to court documents, law enforcement received information about “Viagra” and “Cialis” being offered for sale through the Internet on Craigslist. Law enforcement later conducted controlled drug purchases of counterfeit Viagra from co-defendant Rickey Lee Campbell, 60, of Sacramento, who used the alias “Diamond Jim.” Eversoll and Campbell’s residences were searched and more than 6,000 counterfeit tablets resembling Viagra and Cialis in shape, size, and color were found. Authorities also recovered computers and electronic devices the conspirators used to sell the counterfeit goods.
Campbell has pleaded guilty to the conspiracy and is scheduled to be sentenced on May 8, 2014. He faces up to 10 years in prison for his leadership role in the conspiracy. His sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rockwall Resident Sentenced and Ordered to Pay $10 Million in Restitution for Massive Fraud SchemeRead the Press Release
HOUSTON – Kelly Taylor Gipson, 34, has been ordered to federal prison for 48 months and ordered to pay $9,651,660.15 to victims of life settlement investment fraud scheme, announced United States Attorney Kenneth Magidson along with special agent in charge Lucy Cruz, Internal Revenue Service – Criminal investigation (IRS-CI) and Inspector in Charge Robert Wemyss, U.S. Postal Inspection Service (USPIS).
Gipson was accused along with Charles Craig Jordan, 34, of misappropriating investor funds which ultimately resulted in policies lapsing and investors losing their investment. Jordan entered a guilty plea to conspiracy to commit mail and wire fraud, while Gipson pleaded to conspiring to launder the proceeds from the fraud scheme.
Today, U.S. District Judge Lee H. Rosenthal sentenced Gipson to the four-year-term to be followed by three years of supervised release. Jordan was sentenced in December 2013 to 156 months in federal prison. Both were further ordered to pay restitution of $9,661,660.15 to 503 individuals named as victims in the case.
Jordan and Gipson were accused of devising a scheme to defraud investors from around the United States and Canada who invested millions in the life settlement offerings of Secure Investment Services and American Settlement Associates of Houston. Secure Investment Services was a business name utilized by Jordan initially in this scheme.
A life settlement is an investment in which a person, who is typically elderly or terminally ill, sells his or her life insurance policy for a cash payment, which is a percentage of the life insurance policy’s face value or death benefit payable by the insurance company upon the insured’s death. Once the insured sells an insurance policy, the insured is no longer responsible for paying the policy’s premiums. To keep the policy in force, the life settlement company must ensure any premiums are paid. All premiums due prior to the death of the insured must be paid, in full and on a timely basis, to prevent additional cost or lapse. Investors who purchase life settlements only realize a profit if the total amount invested in the policy, including the purchase price and any additional premium costs, is less than the amount of the death benefit. A life settlement is not profitable if the expenses of acquiring and maintaining the policy (including the amount of premiums that are paid) are more than the amount of the death benefit paid when the insured dies. Typically, the longer an insured lives, the more expensive it is to maintain a life settlement.
Jordan resided in Los Angeles, Calif., and Gipson lived in Rockwall, Texas, while they have been on bond pending the criminal proceedings. While on bond, each are to make monthly payments into the registry of the court towards an anticipated restitution order.
The criminal investigation was conducted by IRS-CI and USPIS and prosecuted by Assistant United States Attorney Melissa Annis.Rochester Man Sentencing on Drug and Gun ChargesRead the Press Release
ROCHESTER, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that David Colon, 37, of Rochester, N.Y., who was convicted of possession of marijuana with the intent to distribute, and being a felon in possession of a firearm, was sentenced to 46 months in prison by U.S. District Court Judge Frank P. Geraci, Jr.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that on October 10, 2008, members of the Greater Rochester Area Narcotics Enforcement Team executed a search warrant at Colon’s residence at 104 Maple Avenue, in Irondequoit, N.Y. Officers encountered a woman and two children in the house at the time. Colon arrived at the location later. During the search, officers seized over 400 grams of marijuana in a storage area in the basement along with two digital scales and marijuana packaging material. Officers also recovered over $4,000.00 in United States currency, ammunition, and a defaced .38 caliber revolver as well as book detailing the subject of growing marijuana.
Colon gave a statement to officers in which he admitted to dealing marijuana from inside his house and that he had the gun to protect his family in case someone tried to rob him.
The sentencing is the result of an investigation by the Greater Rochester Area Narcotics Enforcement Team, composed of law enforcement personnel in Monroe County, under the direction of Rochester Police Department Acting Chief Michael Ciminelli, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon.Rhode Island Man Charged for Failure to Register as Sex OffenderRead the Press Release
BOSTON – A Pawtucket, R.I. man was indicted today, charged with failure to register as a sex offender. The indictment alleges that Ryan Hathaway, 32, is required to register under the Sex Offender Registration and Notification Act, and that he traveled interstate in late 2013 and failed to register as required.
The maximum sentence under the statute is 10 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal of the U.S. Marshals Service, District of Massachusetts, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Reston Man Pleads Guilty to Exporting Unlicensed Goods to IranRead the Press Release
Defendant shipped over $250,000 in high-tech items through United Arab Emirates
ALEXANDRIA, Va. – Vahid Hosseini, 62, of Reston, Va., pleaded guilty today to two felony counts arising from his involvement in exporting various unlicensed goods from the United States to Iran.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia, and Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.
Hosseini pleaded guilty to conspiracy to violate the Iranian Transactions and Sanctions Regulations under the International Emergency Economic Powers Act (IEEPA), and a separate count of money laundering. Hosseini faces a maximum penalty of 15 years in prison and fines totaling $250,000 when he is sentenced on June 6, 2014.
In a statement of facts filed with the plea agreement, from at least as early as January 2008 to July 2013, Hosseini operated a business known as Sabern Instruments from his residence in Reston. Through this business, Hosseini procured over $250,000 worth of goods from over 60 American manufacturers, which he then repackaged and shipped to entities in Iran. The list of high-tech goods included tachometers, power supply instruments, high-temperature probes, ammonia test tubes, valves and machinery parts, all of which are used in a variety of commercial applications, including power plants. Hosseini routed these shipments through the United Arab Emirates (UAE) in an attempt to disguise the fact that the items were destined for Iran. Such exports are prohibited without a license issued by the Treasury Department’s Office of Foreign Assets Control.
In a related money laundering scheme, Hosseini had over $700,000 wired into his company business account from entities in Iran and the UAE, much of which was derived from his illegal export business. He then unlawfully withdrew money from his business account for personal expenditures.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorney Neil Hammerstrom is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Postal Manager Charged with Taking Bribes in Exchange for Postal ContractsRead the Press Release
The manager of the U.S. Postal Service’s Vehicle Maintenance Facility in Cleveland was charged with taking cash bribes in exchange for awarding business and contracts from the Postal Service, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, and Monica Weyler, Special Agent in Charge of the U.S. Postal Service’s Office of Inspector General Eastern Area Field Office.
Kevin Hood, 45, of Richmond Heights, was arrested Thursday and charged with wire fraud and honest services wire fraud.
“Some defendants appear to still have not gotten the message that accepting bribes has no place in Northeast Ohio,” Dettelbach said. “We will continue to work to stamp out public corruption in all its forms.”
“This crime is particularly egregious considering the defendant was promoted to this position because the former manager was convicted on similar charges,” Weyler said.
Hood worked for the Postal Service since 1998 and most recently served as the manager of the Vehicle Maintenance Facility at 1801 Broadway Avenue in Cleveland. In that job, Hood had the ability to award and monitor contracts on behalf of the Postal Service.
The owner of a Cleveland company that has contracts with the Postal Service said Hood approached him for money in order to get work and contracts from the Postal Service. In late 2011, the business owner paid Hood in cash and believed he had to continue to pay Hood to receive work, according to a criminal complaint filed in the case.
The owner estimated he paid between $15,000 and $17,000 to Hood to date. He also estimated he provided up to $8,000 in free labor on Hood's personal vehicles, according to the complaint.
The owner stated Hood told him this was part of the deal in the owner receiving Postal Service work, according to the complaint.
On March 6, the owner paid Hood $4,500 in $100 bills. Hood placed the envelope containing the bills in his left boot. The transaction was monitored and recorded by USPS Office of Inspector General special agents, according to the complaint.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorneys Miranda Dugi and Antoinette T. Bacon following an investigation by special agents of the U.S. Postal Service’s Office of Inspector General.
Physician Pleads Guilty for Role <br /> in Detroit-Area Medicare Fraud SchemeRead the Press Release
A former Detroit-area physician pleaded guilty today for his role in an $11.5 million health care fraud scheme.
Acting Assistant Attorney General Mythili Raman 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 U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.
Jose Mercado-Francis, 60, formerly of Brownstown Township, Mich., pleaded guilty before U.S. District Judge Nancy G. Edmunds in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.
According to court documents, Mercado-Francis admitted that, beginning in approximately September 2009 and continuing through February 2012, he held himself out as a licensed physician and purported to provide physician home services to Medicare beneficiaries, when actually his medical license had been revoked and he was not licensed to practice medicine in Michigan.
Court documents allege that Mercado-Francis operated his scheme out of a medical practice known as House Calls Physicians P.L.L.C., which was located in Allen Park, Mich., and owned by a co-conspirator. Mercado-Francis prepared medical documentation that licensed physicians signed as if they had provided services to Medicare beneficiaries, when, in fact, they had not. The services were then billed to Medicare as if the licensed physicians had performed them.
Court documents further allege that, between approximately May 2008 and October 2012, House Calls Physicians billed Medicare more than $11.5 million for the cost of physician home services. Of that amount, Dr. Mercado-Francis caused the submission of approximately $1.1 million in false and fraudulent physician services claims.
At sentencing, which will be scheduled at a later date, Mercado-Francis faces a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. This case is being prosecuted by Trial Attorney Matthew C. Thuesen 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, the HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are 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 .Perry Physician Indicted for Unlawfully Dispensing Controlled SubstancesRead the Press Release
TALLAHASSEE, FLORIDA – Perry, Florida, physician Eulogio Muncal Vizcarra, 71, was arrested yesterday on charges contained in a federal indictment. U.S. Attorney Pamela C. Marsh announced that the grand jury charged Vizcarra with 49 counts of unlawfully dispensing, or causing the dispensing of controlled substances.
According to the indictment, Vizcarra operated a medical business known as the Perry Family Medical Clinic on S. Jefferson Street in Perry, Florida, where Vizcarra is charged to have prescribed controlled substances to patients without sufficient medical necessity. He allegedly prescribed these substances in quantities and dosages that caused patients to abuse, misuse, and become addicted to the drugs. The indictment further alleges that Vizcarra prescribed controlled substances to patients knowing that the patients were addicted to and misusing these drugs, and that he continued to prescribe addictive controlled substances to patients even after learning that the patients had suffered overdoses on the drugs, were selling the drugs, or were ‘doctor shopping.’
He made his initial court appearance on the charges before U.S. Magistrate Judge Charles A. Stampelos at the U.S. District Courthouse in Tallahassee today. The trial is scheduled for April 14 before U.S. District Judge Mark E. Walker at the U.S. District Courthouse in Tallahassee.
If convicted of unlawfully dispensing controlled substances, Vizcarra faces a term of up to 5, 10, or 20 years imprisonment depending upon the controlled substances involved, and a fine of up to $1,000,000.
This indictment is the result of a joint investigation conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation, the United States Marshals Service, the Florida Department of Health, Taylor County Sheriff’s Office, and the United States Attorney’s Office for the Northern District of Florida. The case is being prosecuted by Assistant United States Attorney Eric K. Mountin.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the Government's burden to prove guilt beyond a reasonable doubt in a court of law.
Owners of Tax Preparation Business Indicted on New Charges for Filing Phony Tax Returns for New Jersey Prison InmatesRead the Press Release
TRENTON, N.J. – The owners of a tax preparation business that filed fraudulent tax returns on behalf of inmates at various New Jersey prisons were indicted today on additional charges of mail fraud and making claims to the United States for payment of fraudulent tax refunds, U.S. Attorney Paul J. Fishman announced.
The 20-count superseding indictment returned by a federal grand jury against Kamal J. James, aka “Bro Messiah Aziz El,” of Seaford, Del., and Crystal G. Hawkins, aka “Sis. Crystal Gabri El,” of Laurel, Del., adds 16 counts of making claims to the United States for payment of fraudulent tax refunds, and three counts of mail fraud. The original count of conspiring to defraud the United States, on which the defendants were indicted on Jan. 16, 2014, remains in place.
According to the superseding indictment and other documents filed in court:
Between October 2011 and October 2013, defendants James and Hawkins operated Release Refunds, a purported tax preparation business – previously based in Brick, N.J., and now in Seaford, Del. – through which they solicited current and former New Jersey prison inmates as clients and then filed fraudulent tax returns on their behalf.
To execute the scheme, James and Hawkins sent Release Refunds “promotional” flyers to inmates at various New Jersey prisons and halfway houses offering tax return preparation services. The pair asked inmates interested in Release Refunds’ services to provide basic identification information and to sign income tax returns and other IRS documents, but not to include any information about their income or withholdings. James and Hawkins then filled in the missing income information on the return forms, fabricating the inmates’ earnings to trigger fraudulent and inflated refunds.
During the course of the investigation, an undercover IRS-Criminal Investigation agent posing as an inmate in a New Jersey prison submitted a completed Release Refunds form and sent it to James and Hawkins. They then sent the “inmate” blank income tax forms and other IRS documents and instructions to sign the documents. James and Hawkins did not request any financial information from the undercover agent before preparing three fraudulent tax returns – including false income information that James and Hawkins provided – to be filed on behalf of the agent for tax years 2010 through 2012. The fraudulent returns resulted in several thousand dollars in refunds and a $1,485 fee for the defendants.
The conspiracy count carries a maximum potential penalty of 10 years in prison. The fraudulent claims counts each carry a maximum potential penalty of five years in prison and the mail fraud counts each carry a maximum potential penalty of 20 years in prison. The defendants also face a fine of $250,000 or twice the amount of the gain or loss from the offense for each count of conviction.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s charges. He also thanked the U.S. Postal Inspection Service and the N.J. Department of Corrections for their roles in the case.
The government is represented by Assistant U.S. Attorney Nicholas P. Grippo of the U.S. Attorney’s Office Criminal Division in Trenton and Trial Attorney Tino Lisella of the Justice Department’s Tax Division.The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
14-078
Defense counsel:
James: Pro se; (Bruce Throckmorton Esq., Trenton, standby counsel)
Hawkins: Pro se; (Andrea Bergman Esq. Assistant Federal Public Defender, Trenton, standby counsel)Owner of Web Hosting Service for Japanese Child Pornography Distribution Website Sentenced to 20 YearsRead the Press Release
SAN FRANCISCO – Kimihiko Makino was sentenced today to 20 years in prison, and ordered to pay $10,000 in restitution for aiding and abetting the advertising of child pornography for sale, announced United States Attorney Melinda Haag and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Clark E. Settles.
Makino, 40, a Japanese national, pleaded guilty on June 24, 2013 to advertising child pornography. According to the plea agreement, Makino admitted to operating servers, located in San Francisco, for a Japanese website known as “Daio,” which advertised the sale of DVDs containing child pornography. Through his maintenance of Daio’s servers, Makino admitted, he knowingly caused the advertisements to be published. The website contained tens of thousands of visual depictions of children, primarily under the age of eight, being victimized and coerced and forced to engage in sexually explicit and often sado-masochistic conduct.
Makino was indicted on July 12, 2012, for advertising child pornography, in violation of 18 U.S.C. 2251(d)(1)(A), and possessing child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B). He was arrested while visiting the United States from Japan for the purpose of maintaining Daio’s servers. In the related Japanese investigation, Japanese authorities have indicted and convicted ten others associated with Daio.
“This country will not tolerate the abuse of children through the production of child pornography, which permanently harms the physiological, emotional, and mental health of children,” said United States Attorney Melinda Haag. “One of the best means of attacking the market for material from this often clandestine industry is to impose severe criminal penalties on individuals who advertise or sell it. This sentence plainly demonstrates that those who engage in the advertisement and distribution of child pornography in the United States deserve to be, and will be, punished severely.”
“Those who trade child pornography over the Internet are a part of a disturbing cycle of violence against children, and, as this case makes clear, face serious consequences” said Clark Settles, special agent in charge of HSI San Francisco. “The reality is, every time a photo or a video of an innocent child being sexually exploited is viewed, that victim is violated again. HSI will continue to aggressively target those who prey upon and sexually exploit our children in the United States and throughout the world. We owe it to youngsters, who will carry the emotional and physical scars of these crimes with them for the rest of their lives.”
The sentence imposed by the Honorable Jeffrey S. White, United States District Court Judge, also included a five year term of supervised release, restitution of $10,000 to be paid to the National Center for Missing and Exploited Children, and forfeiture. The defendant has been in custody since his arrest.
Hartley M. K. West is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rosario Calderon. The prosecution is the result of a two year investigation by the U.S. Attorney’s Office and the U.S. Department of Homeland Security, Homeland Security Investigations, Resident Agent in Charge, San Francisco International Airport. Critical assistance in this investigation was provided by the National Police Agency of Japan, the Tokyo Metropolitan Police Department and HSI Tokyo.
(Makino indictment )
Oregon Man Sentenced to Ninety-Seven Months for Child PornographyRead the Press Release
SAN JOSE – John William Harrison was sentenced yesterday to more than 8 years in prison for possession of child pornography, announced United States Attorney Melinda Haag and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Clark E. Settles.
Harrison pleaded guilty on July 24, 2013, to one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252. According to the plea agreement, Harrison admitted to engaging in multiple on-line conversations from his home in Portland, Ore., with a person he believed was the father of a seven-year old girl living in San Jose, Calif. The person posing as a father was really a special agent with the Department of Homeland Security working in an undercover capacity. During these conversations Harrison indicated he had over 600 still images and at least 75 videos of children engaged in sexually explicit conduct. Harrison also admitted that at least one of the videos contained footage of a child being subjected to sadomasochistic behavior and that most of the images found on his computer involved pre-pubescent minors under the age of 12. Finally, he admitted that he sent all of these digital files to the undercover agent in San Jose using both his Yahoo email account and the U.S. Mail.
Harrison, 45, of Portland, was arrested pursuant to a felony complaint on May 8, 2013, and arraigned in front of a United States Magistrate Judge in Portland on May 9, 2013. He was charged initially with distribution of child pornography. After making his first appearance in San Jose on May 23, 2013, Harrison agreed to waive indictment by a grand jury and was charged by Information with possession and distribution of child pornography on June 7, 2013.
The sentence was handed down by the Honorable Lucy H. Koh, United States District Court Judge, following the guilty plea. Judge Koh also sentenced the defendant to a 5-year period of supervised release. Harrison will also be required to register as a sex offender. The defendant was in custody at the time of sentencing and began serving his sentence immediately.
Amie D. Rooney is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Tracey Andersen. The prosecution is the result of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in conjunction with the Silicon Valley Internet Crimes Against Children SAFE Task Force.
(Harrison information )
Nine Charged for Thefts from Union FundRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of a criminal complaint in which nine individuals were charged with theft from an employee benefit plan. If convicted, Brandon Alfonso (28), James McCall (32), Marta Blackmer (70), Phillip Simmons (50), Ian Chase Dove (26), Jason Ferrari (33), all of Orange City, along with Jason Wesson (37) and Michael Giesinger (36), both of Deltona, and Shane Riley (31, Deland) each faces a maximum penalty of 5 years in federal prison.
According to court documents, Angela Deleon worked at Advance Administration, Inc. (AAI), which was the third-party administrator of an employee benefit plan for the Ironworkers Local 808. As the third-party administrator for the Ironworkers Local 808 Annuity Fund, AAI was responsible for processing members’ payment applications, paying the Fund’s bills, and speaking with union members. Deleon’s duties at AAI included data entry and the processing of payments.
Over a period of about 14 months, Deleon wrote 46 checks from the Fund, totaling over $427,000, to individuals who were not members of the Local 808 or participants in the Fund. The individuals who received those checks from Deleon were her drug dealers or others whom she knew. Those individuals cashed the checks, took whatever money that Deleon owed them, and then provided her with a share of the proceeds.
Alfonso, McCall, Blackmer, Simmons, Dove, Wesson, Ferrari, Giesinger, and Riley were involved in the scheme by allegedly cashing checks written by Deleon, on the Fund’s account, and by splitting the proceeds with her. As of the date of this press release, seven of the nine defendants (McCall, Blackmer, Simmons, Dove, Wesson, Giesinger, and Riley) have been arrested and have had their initial appearance in federal court.
Deleon was previously convicted for her participation in these crimes. She was sentenced to 2 years in federal prison and ordered to pay $594,000 in restitution to the Ironworkers Local 808 Annuity Fund. The restitution amount includes the more than $427,000 that Deleon stole from the Fund, plus the amounts spent by the Fund to audit and reconstruct the records that were impacted by Deleon’s scheme.
A criminal complaint is merely a charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
These cases were investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, and the U.S. Department of Labor’s Employee Benefits Security Administration. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.
New York State Assemblyman William F. Boyland, Jr. Convicted of Bribery, Fraud, Extortion, Conspiracy and TheftRead the Press Release
Earlier today, sitting New York State Assemblyman William F. Boyland, Jr. was convicted by a jury at the federal courthouse in Brooklyn, New York, of twenty-one felony counts, including federal programs bribery, conspiracy to commit federal programs bribery, conspiracy to violate the Travel Act and commit federal programs bribery, extortion, extortion conspiracy, honest services wire fraud, conspiracy to commit honest services wire fraud, federal programs theft and conspiracy to commit mail fraud. Boyland committed each of these offenses by corruptly exploiting his public position representing the 55th Assembly District in Brooklyn, which is comprised of Ocean Hill, Brownsville, Bedford-Stuyvesant, Crown Heights and Bushwick. Upon his convictions, Boyland was automatically expelled from the Assembly. When sentenced, Boyland faces prison terms of up to 20 years on each of the extortion, extortion conspiracy, honest services wire fraud, honest services wire fraud conspiracy and mail fraud conspiracy counts, up to 10 years on each of the federal programs bribery and federal programs theft counts and up to five years on each of the other conspiracy counts. Following his convictions, the Honorable Sandra L. Townes, who presided over the trial, ordered Boyland remanded into custody pending his sentencing on June 30, 2014. Boyland is also subject to up to at least $250,000 in fines on each of the counts of conviction, as well as criminal forfeiture and mandatory restitution.
The convictions were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
“The breadth and pervasiveness of the corruption exposed by this prosecution is staggering. Wherever there was an opportunity for William Boyland to corruptly line his own pockets, he took it. By soliciting bribes, by stealing funds intended to help the elderly, and by defrauding New York State and the Assembly, Boyland cravenly pursued his own interest at the expense of his constituents. In doing so, Boyland not only broke the law, but broke faith with the public he was elected to serve. Today’s verdict ensures that Boyland will be held accountable for his corrupt actions,” stated United States Attorney Lynch. “When our elected officials engage in self-dealing, when they abdicate their responsibilities, when they succumb to greed, the average citizen pays for it dearly, and our democratic system suffers on so many levels. The verdict sends a clear message that we and our partners in the FBI will vigorously investigate and prosecute any public official who trades on a position of power to line his own pocket.” United States Attorney Lynch praised the hard work and dedication of the FBI agents who investigated the case and expressed her thanks to the New York State Comptroller’s Office, the New York State Office of the Aging, the Internal Revenue Service Criminal Investigation Division, the New York State Assembly Department of Finance and the New York City Department of Investigation for their assistance with the investigation.
The evidence admitted at trial proved that, beginning in January 2007 and continuing through December 2011, Boyland engaged in four separate corrupt schemes, ranging from soliciting and accepting over $250,000 in bribe payments, to submitting false travel vouchers to New York State, to stealing state funds intended for the elderly:
1. Carnival Scheme: Boyland extorted and accepted over $14,000 in bribes, in exchange for undertaking official action to benefit a carnival promoter (the “Promoter”) and an undercover FBI agent. Specifically, in August 2010, Boyland met with the Promoter and this undercover FBI agent (“UC1”) on multiple occasions in New York City and discussed the desire of the Promoter and UC1 to hold carnivals in Boyland’s district, for which they needed government approvals. During those meetings, Boyland requested payments in exchange for assisting the Promoter and UC1, and the Promoter and UC1 agreed. Boyland also described various ways in which the bribes could be disguised to hide their true purpose. After these meetings, Boyland directed his Assembly staff to assist the Promoter and UC1 in their efforts to gain government approvals. Boyland then represented to the Promoter and UC1 that he and his staff (i) engaged in discussions with government agencies to assist the Promoter in obtaining carnival-related leases and permits, and (ii) arranged for a non-profit organization to sponsor the Promoter’s carnivals. Boyland also directed his staff to give the Promoter letters of support, on Boyland’s Assembly letterhead, that the Promoter needed in order to operate carnivals in Boyland’s district. In exchange, UC1 paid Boyland three separate bribes: $7,000 in cash; a $3,000 check with the “payee” line left blank; and $3,800 worth of money orders that were deposited into Boyland’s campaign bank account. As was shown to the jury during the trial, Boyland was captured on videotape personally accepting the $7,000 cash bribe at his district office.
2. Real Estate Scheme: Boyland also accepted the $7,000 cash bribe described above in exchange for undertaking official action to benefit UC1 and a second undercover FBI agent (“UC2”) in a purported real estate venture in Boyland’s district. Specifically, Boyland proposed a brazen scheme in which UC1 and UC2 would purchase the former St. Mary’s Hospital in Boyland’s district for $8 million, obtain state grant money to renovate the hospital, and resell it for $15 million to a non-profit organization that Boyland claimed to control. Boyland assured UC1 and UC2 that he would use his influence as an Assemblyman to secure state grant money for the project and handle any zoning issues that arose. After accepting the $7,000 cash bribe described above, Boyland was later recorded demanding an additional $250,000 bribe payment from UC1 and UC2 as a condition of using his official position to realize the real estate scheme he had proposed.
Recordings of meetings in hotel rooms in Atlantic City and New York City where Boyland discussed the real estate scheme revealed that he recognized the scheme’s corrupt and illegal nature and sought to conceal his own involvement. At the meeting in the hotel in Atlantic City, Boyland stated, “I got a middle guy by the way . . . I gotta stay clean . . . I got a bag man . . . .” Boyland further explained that he did not want to talk on the telephone and preferred in-person meetings: “I stopped talking on the phone a while ago . . . I’m just saying there is no real conversation that you can have . . . especially with what we’re talking about.”
At the meeting in the hotel room in New York City, Boyland reiterated that he wanted UC1 and UC2 to pay him a $250,000 bribe in exchange for the St. Mary’s Hospital project. When UC2 instead countered Boyland’s demand by offering to pay Boyland $5,000 for introductions to other government officials who would be involved in the project, Boyland rejected the counter-proposal, stating that the people whom Boyland could introduce to UC1 and UC2 were worth more than $5,000: “I’m not talking about $5,000 folks. I’m talking about . . . people that can actually get these projects done . . . .”
3. False Voucher Scheme: From January 2007 to December 2011, Boyland stole New York State funds by submitting false New York State Assembly Member Travel Vouchers (“Vouchers”). Boyland submitted over two hundred fraudulent vouchers where he falsely claimed to be in Albany on legislative business when he in fact was not in Albany, including days when Boyland was in New York City meeting with the undercover FBI agents and demanding $250,000 in bribes; days when he was in North Carolina and Virginia visiting with family and friends; and for days when he was in Istanbul, Turkey. In reliance on Boyland’s false Vouchers, New York State paid Boyland over $70,000 in fraudulent mileage expense reimbursements and per diem payments.
4. Theft of State Funds for the Elderly: From July 2007 to September 2010, Boyland conspired to defraud New York State and the New York State Office of the Aging (“NYSOA”). Boyland, a member of the Assembly’s Committee on the Aging, steered $200,000 of New York State “member item” funds to a Brooklyn-based non-profit organization whose mission, as described on its website, was to provide a “social setting that enable[s] elderly individuals to maintain their independence and remain at home in the community.” Notwithstanding his certification, in writing, to the NYSOA that these state funds would not be used for any partisan or political purpose, Boyland directed that the majority of these $200,000 in state funds be used for the benefit of Boyland and his political campaigns by paying for community events that promoted Boyland such as a Senior Lunch Cruise on the Spirit of New York Cruise Line, a fireworks show, and a large end of the summer picnic held at a park in his district, as well as goods that promoted Boyland, such as “Team Boyland” t-shirts distributed at those community events.
The government’s case is being prosecuted by Assistant United States Attorneys Christina B. Dugger, Robert L. Capers and Lan X. Nguyen.
The Defendant:
WILLIAM F. BOYLAND, JR.
Age: 43
Residence: Brooklyn, New York
Nevada Man Sentenced to Prison for Possession of Stolen Truck, Weapons and Homemade ExplosivesRead the Press Release
A 22-year-old man who was arrested in July 2013 by University of Washington Police in a stolen truck with stolen firearms, body armor and gasoline incendiary devices, was sentenced today in U.S. District Court in Seattle to three years in prison and three years of supervised release, announced U.S. Attorney Jenny A. Durkan. JUSTIN MILES JASPER pleaded guilty to transportation of a stolen vehicle, possession of a stolen firearm and possession of destructive devices in November 2013. A key provision of the sentence requires JASPER to participate in mental health counseling. At the sentencing hearing U.S. District Judge Ricardo S. Martinez said the investigation revealed JASPER had “no specific plan,” but noted that possession of the weapons and explosives was both alarming and dangerous for the public, law enforcement and the defendant.
JASPER was arrested on July 3, 2013 near the UW campus in Seattle. He was driving a 1998 Dodge Ram 2500 pick-up truck with Montana plates. The truck had been reported stolen by the owner in Butte, Montana. Inside the truck police found a Stevens Model 311A double-barrel 12-gauge shotgun, with no serial number, and a Mauser Model 1895 bolt-action rifle. Both guns had been stolen from the same owner as the truck. According to the plea agreement, the truck also contained six destructive devices commonly referred to as “Molotov cocktails.”
According to records filed in the case, the investigation never uncovered any plan by JASPER to use the weapons or explosives. Both sides recommended that Judge Martinez require mental health counseling while JASPER is on supervised release and will recommend the Bureau of Prisons place JASPER at a facility with mental health treatment while he is incarcerated.
At the close of the sentencing hearing Judge Martinez noted that law enforcement had carefully investigated JASPER’s conduct, and said the investigation led to a better outcome. Judge Martinez said, “I commend everybody’s effort on this case.”
The case was investigated by the FBI, the UW Police Department, and the Seattle Police Department. The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Nashville Man Indicted on Charges of Bank Larceny, Money Laundering and Aggravated Identity TheftRead the Press Release
Over $181,000 in Donations Stolen From Area Churches
B Kenneth James Stopkotte, 48, of Nashville, Tennessee, was indicted yesterday by a federal grand jury and charged with bank larceny, money laundering, access device fraud and aggravated identity theft, announced David Rivera, U.S. Attorney for the Middle District of Tennessee, and Todd Hudson, Special Agent in Charge, U.S. Secret Service.
According to the indictment, between August 27, 2012, and February 28, 2013, Stopkotte stole approximately $181,608.52 in donation checks from the mailboxes of numerous churches in the Nashville area. Stopkotte deposited the checks in accounts which he controlled at SunTrust Bank, First Tennessee Bank, Regions Bank, the Bank of Nashville and the Navy Federal Credit Union. Additionally, Stopkotte transferred approximately $70.000 of the stolen funds from these various bank accounts to an account that he controlled at USAA Federal Savings Bank. Stopkotte then laundered approximately $48,000 of the money by nine wire transfers in varying amounts into an account titled Black Marlin Industries located at the Federal Bank of the Middle East in Nicosia, Cyprus.
Also, according to the indictment, during the period of December 15, 2011, through January 19, 2012, Stopkotte used a credit card that had been issued to another person to charge approximately $13,631.45 in payments and other things of value, while using a means of identification of another person during the credit card transactions.
If convicted, Stopkotte faces a maximum penalty of 10 years in prison and a $250,000 fine on each of the bank larceny offenses, 20 years in prison and a $500,000 fine on each of the money laundering offenses, and 15 years in prison and a $250,000 fine on the access device charge. Additionally, Stopkotte faces a mandatory minimum sentence of two years on the aggravated identity theft charge which must be served consecutively to the prison term received for the access device offense.
This investigation was conducted by the U.S. Secret Service, the Murfreesboro, Tenn. Police Department, the Franklin, Tenn. Police Department, the Brentwood Tenn. Police Department and the Madeira, Ohio Police Department. Assistant U.S. Attorney Sandra G. Moses is representing the United States.
Charges brought by an indictment are merely accusations and are not evidence of guilt. The defendant has the right to a trial, at which, the government must bear the burden of proof beyond a reasonable doubt.
Mission Man Sentenced for Simple Possession of A Controlled SubstanceRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man charged with Simple Possession of a Controlled Substance pled guilty and was sentenced on March 4, 2014, by U.S. Magistrate Judge Mark A. Moreno.
Steven Plank, age 29, was sentenced to 9 months of probation, a $1,000 fine, and $25 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on September 29, 2013, when Plank, who was working as a correctional officer at the Rosebud Sioux Tribe Adult Correctional Facility on the Rosebud Reservation, took a bottle of an inmate’s hydrocodone pills. The pills had been prescribed for the inmate by the Rosebud Indian Health Service Hospital. The hydrocodone pills that Plank stole from the inmate are a Schedule III controlled substance.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Tim Maher.
Mission Man Sentenced for Sexual Abuse of A MinorRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on March 4, 2014, by U.S. District Judge Roberto A. Lange.
Richard Peneaux, age 20, was sentenced to 18 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Peneaux was indicted by a federal grand jury on September 17, 2013. He pled guilty on December 11, 2013.
The conviction stems from an incident in August, 2013, when Peneaux was dating the victim, who had not attained the age of 16. Peneaux was aware that the victim was underage when he engaged in sexual intercourse with the victim.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Marie H. Ruettgers prosecuted the case. Peneaux was immediately turned over to the custody of the U.S. Marshals Service.
Mexican Citizen Sentenced to 70 Years for Holding Illegal Aliens at Gun Point in DesertRead the Press Release
TUCSON, Ariz. – On March 5, 2014, Isabel Perez-Arellanez, 43, of Guasave, Sinaloa, Mexico, was sentenced by U.S. District Chief Judge Raner C. Collinsto 70 years imprisonment. Perez-Arellanez was found guilty by a federal jury on Nov. 21, 2013 of one count of conspiracy to commit hostage taking, three counts of hostage taking, four counts of possession of a firearm during and in relation to a crime of violence, and one count of illegal alien in possession of a firearm.
This prosecution and sentence demonstrate that armed defendants who prey on vulnerable border crossers will be apprehended, and will face severe consequences for their actions,” said John S. Leonardo, U.S. Attorney.
“This man thought he could use the rugged mountains of Southern Arizona as a place to conduct violent crimes out of reach of the rule of law. Thanks to the dedicated work of the U.S. Border Patrol agents who arrested him and the HSI special agents who investigated this case, he will now spend decades in a federal prison,” said Matt Allen, special agent in charge of ICE Homeland Security Investigations (HSI) Arizona. “Finding and bringing these modern-day bandits to justice is a top priority for HSI and our law enforcement partners.”
In March of 2012, Perez-Arellanez and two co-defendants encountered two Mexican nationals and one Guatemalan national who had become lost and separated from their smuggling groups in the remote Tumacacori Mountains, approximately 50 miles south of Tucson. The defendant held the three victims at gun point for two to three days, forcing the victims to contact family members living in the United States to extort money from them. Once the victims’ family members wired between $900 and $1500 to the defendants’ Western Union accounts in Mexico, the defendant abandoned the victims in the desert without food and water. Eventually, the three victims made their way to Interstate 19 and reported the crime to Border Patrol who apprehended the defendants as they traveled southbound towards Mexico. At the scene of the apprehension, agents found a loaded 9mm pistol and personal effects belonging to the victims.The investigation in this case was conducted by U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI) and the U.S. Border Patrol, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution was handled by Rui Wang and Matthew C. Cassell, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-12-1025-TUC-RCC
RELEASE NUMBER: 2014-014_ Perez-ArellanezFor more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Maryland Man Pleads Guilty to Securities Fraud, Operated A Ponzi Scheme That Caused About $25 Million in LossesInvestment Scam Ran from 2006 to 2010, Then CollapsedRead the Press Release
WASHINGTON - Garfield M. Taylor, 55, of Rockville, Md., pled guilty today to a securities fraud charge stemming from operating a Ponzi scheme that resulted in investors losing approximately $25 million that they invested with Taylor and companies he controlled.
The plea was announced by Principal Assistant U.S. Attorney Vincent H. Cohen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Chester A. McPherson, Interim Commissioner of the District of Columbia Department of Insurance, Securities, and Banking.
Taylor pled guilty in the U.S. District Court for the District of Columbia to securities fraud. The Honorable Chief Judge Richard W. Roberts scheduled sentencing for July 15, 2014. Under federal sentencing guidelines, Taylor faces a likely range of 151 to 188 months of incarceration, as well as a fine of up to $175,000. Under the plea agreement, he also must pay restitution to the victims of the scheme. The government maintains that these victims’ losses total, at least, $25,123,707. Finally, Taylor is subject to an additional forfeiture money judgment.
In a parallel action, the U.S. Securities and Exchange Commission obtained a civil judgment against Taylor for his fraudulent conduct.
“Today Garfield Taylor admitted to orchestrating a Ponzi scheme that left charities and families in our area with $25 million in losses,” said Principal Assistant U.S. Attorney Cohen. “Taylor used smoke-and-mirror tactics to make promises he could never keep and lied to investors about how he was using their money until the whole scam came crashing down. The years in prison he faces are a just punishment given the enormous financial harm his fraud inflicted on the residents of the District of Columbia.”
“By pleading guilty today, Mr. Taylor took responsibility for bilking clients out of more than $25 million by falsely leading them to believe that he was investing their hard-earned money in the way he promised he would,” said Assistant Director in Charge Parlave. “There is no safe harbor for criminals who commit securities fraud, and the FBI will continue to work with our federal, state and local partners to eradicate those who threaten the integrity of our financial markets.”
“This significant case involved a serious, complex type of securities fraud that impacted many people’s livelihoods, savings and investments. I applaud the joint efforts by the investigators in our department, the U.S. Attorney’s Office and the FBI to shut down this scheme that deceived many out of their hard earned money,” said Interim Commissioner McPherson. “Today’s plea demonstrates that defrauding investors in the District carries significant consequences.”
According to the government’s evidence, Taylor devised and employed a scheme from in or about September 2006 through in or about September 2010 in which he convinced investors to invest with him by promising them substantial returns on their investment, telling them that he used a sophisticated securities trading strategy that protected against loss, and claiming that he had a proven track record of using this strategy effectively.
During the course of this scheme, however, Taylor never used the trading strategy that he told investors that he would use. With the investments he did make during this period, Taylor either lost money or made minimal profits far below what was needed to pay the amounts he owed. The only way that Taylor was able to pay the substantial interest rates he was paying during this period was to use portions of the principal invested by new investors to pay amounts that were owed to earlier investors.
In one example from the government’s evidence, Taylor, in April 2010, used approximately half of an investor’s $425,000 investment to pay interest and principal that was due to earlier investors, rather than using those funds to invest in securities, as he had promised to do. Taylor paid only a portion of the interest payments he was required to pay the investor, before telling the investor that, because of trading losses, he was unable to make any more interest payments or to return the investor’s principal.
At the time of the scheme’s collapse, Taylor owed investors approximately $25 million just to cover the principal he was contractually required to return to them.
In announcing the plea, Principal Assistant U.S. Attorney Cohen, Assistant Director in Charge Parlave, and Interim Commissioner McPherson commended the work of those who investigated the case from the FBI’s Washington Field Office and the D.C. Department of Insurance, Securities and Banking. They also expressed appreciation to the U.S. Securities and Exchange Commission for its significant assistance. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tasha Harris, L. Lenisse Edloe, and Shanna Hays; Litigation Technology Specialist Joseph Calvarese; Assistant U.S. Attorneys Matt Graves, Lionel André, and Catherine K. Connelly, who investigated and prosecuted the matter; and former Assistant U.S. Attorney Bridget Fitzpatrick, who investigated the matter.
14-057Marlboro Man Sentenced for Defrauding AirlinesRead the Press Release
BOSTON – A Marlboro man was sentenced today for charges stemming from his scheme to defraud various airlines.
Pedro Igor Duarte, 28, was sentenced to two years in prison, three years of supervised release, and was ordered to pay $28,210 in restitution. In September 2013, Duarte pleaded guilty to three counts of mail fraud.
Beginning October 2007 and continuing through April 2009, Duarte flew on various airlines, including Continental Airlines, American Airlines, and Air Tran Airways (now Southwest Airlines), for the purpose of submitting and obtaining payment on lost baggage claims, when in fact he had not lost any baggage on those flights.
Prior to a flight Duarte checked his baggage with the airline. Upon arrival, he picked up his checked baggage, but then submitted a lost baggage claim form, falsely stating that the airline had lost his baggage. Duarte would slightly alter the spelling of his name on the baggage claim form so that the airline would not know that the same person was filing numerous lost baggage claims. He also would provide a Massachusetts address or, alternatively, an address outside of Massachusetts, but would later contact the airline and change his address to a Massachusetts location. In support of his lost baggage claim, Duarte would provide the airline with receipts purporting to document the value of his lost baggage. Upon receipt of that information, the airline would mail him a check to compensate for the value of his purportedly lost baggage.
In September 2013, Duarte pleaded guilty to the offenses. Subsequently, the government learned that on April 24, 2013, after Duarte was indicted and while on his pretrial release, he flew from Boston to Palm Beach, Fla., under a false identity and without first obtaining authorization of the Court to do so, thus violating conditions of his pretrial release. On April 26, 2013, Duarte opened a mailbox and a Citibank account in Florida, using a fraudulent Brazilian passport and driver’s license before flying back to Boston the following day. The Citibank account opened in Florida was used to facilitate the purchase and negotiation of fraudulent U.S. Postal money orders, some of which were fraudulent money orders that were ultimately deposited into Duarte’s wife’s bank account. In November 2013, Duarte made false statements to federal agents by denying that he had opened the mailbox and Citibank accounts in Florida under the false identity. Duarte acknowledged depositing some of the money orders in question into his wife’s bank account but denied facilitating fraud.
The sentencing hearing was initially scheduled for Jan. 17, 2014. Duarte appeared in the courthouse, but then absconded before the sentencing hearing commenced. A bench warrant issued and Duarte turned himself into the custody of the U.S. Marshals Service on Feb. 24, 2014.United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, investigated the matter and made the announcement today. The case was prosecuted by Assistant U.S. Attorney Maxim Grinberg.
Man Sentenced for Misuse of Passport and Aggravated Identity TheftRead the Press Release
BUFFALO, N.Y.– U.S. Attorney William J. Hochul, Jr. announced today that Bakusa Dukuray, 38, of Gambia, who was convicted of misusing a passport and aggravated identity theft, was sentenced to 24 months in prison by U.S. District Court Chief Judge William M. Skretny. The defendant will be deported following the completion of his sentence.
Assistant U.S. Attorney Marie P. Grisanti, who handled the case, stated that in May of 2013, Dukuray attempted to enter the United States at the Lewiston Bridge Port of Entry in Lewiston, New York using a Canadian passport issued in the name of a friend.
The sentencing is the culmination of an investigation on the part of United States Customs and Border Protection, under the direction of Randy Howe, Acting Director of Field Operations.Local Attorney, His Father and 17 Others Sentenced for Trafficking Cocaine Through Starr CountyRead the Press Release
McALLEN, Texas – A total of 19 people have been handed federal prison sentences for their roles in a drug trafficking conspiracy originating out of Starr County involving more than 10,000 kilograms of marijuana in 2012 and 2013, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio.
“This HSI Organized Crime Drug Enforcement Task Force (OCDETF) investigation, worked in collaboration with the Drug Enforcement Administration (DEA) and our other law enforcement partners, dealt a major blow to the Delfino Bazan Drug Trafficking Organization as 19 of its members were sentenced,” said Ayala. “HSI, in collaboration with the DEA, seized approximately 12,247 kilograms of marijuana, 19 weapons, along with U.S. currency and other personal property purchased with illicit proceeds.”
U.S. District Judge Crane sentenced South Texas attorney Jose Luis Palacios Jr., 38, of Mission, and his father, Jose Luis Palacios Sr., 64, a legal permanent resident of Edinburg and owner of J&J Auto Sales in McAllen to 144 and 60 months in federal prison, respectively. Elee Camargo, 37, of McAllen, an oil field service’s entrepreneur, received a sentence of 84 months. They were all convicted for their roles in the attempt to coordinate the transportation of 428 kilograms of marijuana to the primary target of the investigation, Delfino Bazan.
Bazan, 44, of Houston, would receive shipments of marijuana from various co-conspirators in Houston to sell to others. Today, he was sentenced to a total of 324 months in prison. It is estimated that over the course of the conspiracy, Bazan was receiving at least 1,000 kilograms of marijuana each month to distribute to others in the spring of 2012. Bazan was also sentenced to 324 months for cocaine trafficking in a case originating out of the Eastern District of Texas. The sentences will be served concurrently. As part of the plea agreement in that case, he has agreed to a monetary judgment of more than $10 million.
Bazan’s common law wife Alejandrina Martinez, 43, of Houston, received a sentence of 30 months for her role in laundering drug proceeds through bank accounts on behalf of Bazan.
Also sentenced today were Sostenes Ferreira-Garcia, 50, Enrique Montalvo, 40, and Jose Felipe Ramon, 33, all of Rio Grande City; and Samuel Espino-Morales, 59, Jorge Luis Martinez-Moreno, 28, and Homero Daniel Gutierrez-Aguilar, 24, all of Camargo, Tamaulipas, Mexico. All were each sentenced for their respective roles in smuggling marijuana from Mexico into the United States near La Casita for further distribution within the United States. They assisted in the smuggling of at least 10,000 kilograms of marijuana during the spring of 2013, all of which was intercepted by law enforcement during the course of the investigation. Ferreira-Garcia, who coordinated the smuggling and further distribution was sentenced to 240 months. Enrique Montalvo scouted for the group and received a sentence of 108 months. Load driver Espino-Morales was sentenced to 51 months, while Martinez-Moreno and Gutierrez-Aguilar, who assisted with the loading and unloading of the marijuana were sentenced, respectively, to 140 and 112 months in prison. Ramon allowed his residence to be used as a stash location and received a sentence of 135 months in prison.
Eight others - Ivan Del Jesus Campos-Landa, 31, David Muniz, 54, Jose Luis Lozano, 41, Mario Alberto Martinez, 44, and David Ulloa Correa, 48, all of Rio Grande City; Thomas Garcia, 53, of Garciasville; Edmundo Canales, 23, of Edinburg; and Rosendo Benitez, 45, of McAllen - were all convicted of attempting to transport varying amounts of marijuana at varying times throughout the conspiracy. Campos-Landa was sentenced to 57 months, while Muniz, Lozano, Martinez, Correa, Garcia and Canales were ordered to serve 60, 41, 72, 24, 120 and 46 months in prison, respectively. Benitez will serve a 87-month-term of imprisonment.
The OCDETF investigation dubbed “Operation Casanova” was conducted by HSI, DEA Internal Revenue Service – Criminal Investigation and the Starr County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Juan F. Alanis is prosecuting the case.
Leon County Businessman Sentenced to Federal PrisonRead the Press Release
Bobby Edward Tubb, 31-year-old owner of Tubb Collision in Centerville, TX, will spend 51 months in federal prison for his involvement in the falsification and removal of vehicle identification numbers (VINs), announced United States Attorney Robert Pitman, Texas Department of Public Safety (DPS) Director Steven McCraw and Leon County Sheriff Kevin Ellis.
In addition to the prison term handed down late yesterday afternoon in Waco, U.S. District Judge Walter S. Smith, Jr., ordered that Tubb pay a $1,000 fine and be placed under supervised release for a period of three years after completing his prison term.
On January 9, 2014, Tubb pleaded guilty to one count of aiding and abetting the falsification and removal of VINs. According to court documents, since 2010, Tubb directed his half-brother and employee, 24-year-old Johnathan Harvey Nicholas, to remove or alter identification numbers from vehicles at Tubb Collision.
During the investigation, authorities executed a search warrant at a storage unit in Flynn, TX, being rented by Nicholas using an alias. The unit contained a stolen vehicle, which had previously been in the possession of Tubb, as well as numerous vehicle parts from new vehicles, such as dashes, door panels and steering columns. Many of these component parts had their VIN and/or vehicle traceability numbers removed or altered. Subsequently, authorities executed several other search warrants at various locations within Leon County which resulted in the discovery of approximately six (6) stolen vehicles and various vehicle component parts.
On January 8, 2014, Judge Smith sentenced Nicholas to one year and one day in federal prison followed by three years of supervised release and ordered that he pay a $500 fine for his role in the scheme.
This case was investigated by the Texas Department of Public Safety Criminal Investigation Division and the Leon County Sheriff’s Office. Assistant United States Attorney Mary Kucera prosecuted this case on behalf of the Government.Lancaster Pair Charged in Bank RobberyRead the Press Release
An Indictment was filed today charging Kyle Costello, 27, and Matthew Hill, 29, both of Lancaster, PA, with conspiracy to commit armed bank robbery, armed bank robbery, carrying and using a firearm during and in relation to a crime of violence, and aiding and abetting, announced United States Attorney Zane David Memeger. Hill is also charged with attempted bank robbery.
According to the indictment, on November 7, 2013, the defendants robbed the National Penn Bank, on Lancaster Pike in Shillington, Pennsylvania, at gunpoint. It is further alleged that on December 6, 2013, Hill tried to rob the Susquehanna Bank, on E. Market Street in York, Pennsylvania.
If convicted the defendants face a maximum possible sentence of life in prison, with a mandatory minimum sentence of seven years consecutive to any other sentence imposed, and a fine of up to $1million.
The case was investigated by the FBI, York City Police Department, Cumru Township Police Department, Lancaster City Police Department. It is being prosecuted by Assistant United States Attorney Salvatore L. Astolfi.
Click here to view the indictment
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Kyle Man Indicted for Assault and BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Kyle, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Burglary.
Makes Good was remanded to the custody of the U.S. Marshals Service. A trial date has not been set.
Vinnie Sonny Makes Good, age 26, was indicted on February 19, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 27, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 25 years’ imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment charges that Makes Good and another person broke into a home near Kyle and assaulted a man.
The charges are merely accusations and Makes Good is presumed innocent until and unless proven guilty.
The investigation was conducted by the Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Ketchikan Man Convicted of Assault on a Federal OfficerRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that on March 6, 2014, a jury of eight men and four women found Jon William Munhoven guilty of assault on a federal officer.
Munhoven, 56, was tried before U.S. District Court Judge Timothy M. Burgess in Juneau, Alaska.
According to Assistant U.S. Attorney Jack S. Schmidt and Special Assistant U.S. Attorney Lieutenant Commander Stanley P. Fields, who jointly prosecuted the case, the evidence presented at trial established that on September 2, 2013, the United States Coast Guard at Coast Guard Station Ketchikan dispatched six personnel in a 25-foot Response Boat Small (RBS) in response to a call for help from a mariner who had been assaulted on his vessel. After travelling through thick fog, the RBS crew arrived at the vessel and contacted the mariner who had called for help, as well as a female passenger and Jon William Munhoven. The mariner had a bloody nose and described being hit by Munhoven. Munhoven was irate and hostile when the Coast Guard Boarding Team initially contacted him and they ordered him to disembark the mariner’s vessel.Munhoven was placed in handcuffs and sat on the aft deck box of the RBS. Munhoven refused to listen to directions from the U.S. Coast Guard Boarding Team, and then started to actively resist the Coast Guard personnel. The Boarding Team placed Munhoven on the back deck in order to control his movements and for his own safety and the safety of the crew. During this time, Munhoven intentionally kicked one of the U.S. Coast Guard Boarding Team members in the face with a shod foot, using it as a dangerous weapon and causing bodily injury to the Coast Guard crew member.
Judge Burgess scheduled sentencing for June 23, 2013, at 3:30 p.m. in Juneau. The law provides for a sentence of up to 20 years imprisonment, a fine of $250,000, and three years of supervised release.
Ms. Loeffler commended the United States Coast Guard 17th District Legal Office, United States Coast Guard Investigative Service (USCGIS), and the Ketchikan Police Department for the investigation leading to the prosecution of Munhoven.
Kern County Man Charged with "Sextortion" of Minors Using Social MediaRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Brian Caputo, 25, of Arvin, charging him with sexual exploitation of a minor and receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.
According to court documents, Caputo for the past eight years has used social media accounts with Facebook, Kik Messenger, Text Me! as well as Yahoo! and Dropbox accounts to communicate with dozens of minor females throughout the United States while posing as a minor female. Soon after establishing communication with the minor females, Caputo would threaten to reveal sexually explicit images of their friends unless the minor females created and sent to him images of themselves nude or engaging in sexually explicit conduct. In June 2013, Caputo contacted a 12-year-old girl in El Paso, Texas and threatened to distribute sexually explicit pictures of her 11-year-old friend unless she sent nude images of herself to Caputo. She told a family member who contacted the El Paso Police Department, and they started an investigation.
When law enforcement investigators traced the threatening communications to Caputo, they discovered that he had been victimizing many other minor females across the United States. For example, Caputo convinced one minor female to take and then upload more than 660 sexually explicit images of herself to a Dropbox account controlled by Caputo. When agents executed a search warrant at his residence in Arvin, on February 28, 2014, Caputo's cell phone contained hundreds of images of girls ages 11-15 undressing, nude, or engaging in sexually explicit conduct. Caputo then traded the images with other Internet users.
To date, at least eight minor females have been identified, although law enforcement is attempting to confirm the identity of many other victims. Caputo established Facebook accounts, and contacted minor females, using the names Giavanna Derann, Catness Love, Melissa Harpson, Cristal Dafnie, and Britt Any. Anyone who believes that they might have been a victim of Caputo's offenses is encouraged to contact the FBI's Bakersfield office at (661) 323-9665.
The investigation of this case is ongoing and has been done by the Federal Bureau of Investigation Offices in El Paso, Texas and Bakersfield, Calif., with assistance from the El Paso Police Department and the FBI's Violent Crimes Against Children Task Force. Assistant United States Attorney David Gappa is prosecuting the case. Caputo is scheduled to appear before United States Magistrate Judge Sheila K. Oberto on Monday, March 10, 2014, at 1:30 p.m. for arraignment and to determine whether he should remain detained or be released on bond.
If convicted, Caputo faces a maximum statutory penalty of 30 years in prison for sexual exploitation of a minor and 20 years in prison for receipt or distribution of child pornography and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Click on the "resources" tab for information about Internet safety education.Justice Department Enters Consent Decree with National Tax Preparer H&R Block Requiring Accessibility of Websites and Mobile Apps Under Americans with Disabilities ActRead the Press Release
Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts announced today that they have entered into a consent decree with HRB Digital LLC and HRB Tax Group Inc., subsidiaries of H&R Block Inc., to remedy alleged violations of the Americans with Disabilities Act (ADA). The decree resolves the department’s allegations that individuals with disabilities are denied full and equal enjoyment of largely tax-preparation focused goods and services that are provided through H&R Block’s website and mobile applications. The decree has been filed with the U.S. District Court for the District of Massachusetts for the court’s approval.
On Dec. 11, 2013, the Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts filed a complaint in intervention in the lawsuit National Federal of the Blind (NFB) et al. v. HRB Digital LLC et al. to enforce Title III of the ADA. The decree resolves the complaints by the NFB, two individual plaintiffs and the United States filed in the District of Massachusetts.
H&R Block is one of the largest tax return preparers in the United States. It offers a wide range of services through its website, www.hrblock.com, and its mobile apps, including professional and do-it-yourself tax preparation, instructional videos, office location information, interactive live video conference and chat with tax professionals, online and in-store services and electronic tax-return filing.
The complaint alleged that H&R Block failed to code its website in a manner that would make it accessible to individuals who have vision, hearing and physical disabilities. As described in the complaint, individuals with disabilities use various assistive technologies to access the Internet, including screen reader software, refreshable Braille displays, keyboard navigation and captioning, among others that are not currently compatible with H&R Block’s website. These technologies have been widely used for decades. The recognized international industry standards for web accessibility, known as the Web Content Accessibility Guidelines (WCAG) 2.0, can be found online and are freely available to help companies ensure that individuals with disabilities can fully and equally enjoy their web-based goods and services.
“This landmark decree ensures that individuals with disabilities will have an equal opportunity to independently and conveniently obtain information and complete taxes as others do,” said Acting Assistant Attorney General Samuels. “H&R Block is to be commended for working with the NFB and the Justice Department in resolving to take such steps.”
“For those with disabilities, an inaccessible website puts them at a great disadvantage and further perpetuates a feeling of dependence and reliance on others,” said U.S. Attorney Ortiz. “With thoughtful and proper web design, businesses and organizations can have a great impact on the daily lives of people with disabilities who, like everyone else, seek to enjoy the benefits of technology.”
Under the terms of the five year decree, H&R Block’s website, tax filing utility and mobile apps will conform to the Level AA Success Criteria of the WCAG 2.0. According to the decree, the H&R Block website will be accessible for the start of the next tax filing term on Jan. 1, 2015, with additional accessibility deadlines over the following years of the decree. Additionally, HRB Digital and HRB Tax Group have agreed to: appoint a skilled web accessibility coordinator who will report to H&R Block’s enterprise Chief Information Officer; adopt a web accessibility policy; initiate training on accessible design for its web content personnel; evaluate employee and contractor performance based on successful web access programming; conduct regular automated and user group testing; and hire an approved outside consultant to prepare annual independent evaluations of Block’s online accessibility. H&R Block will also pay $45,000 to the two individual plaintiffs, and a $55,000 civil penalty.
An accessible version of the consent decree is available on the ADA website.
Justice Department Enters Consent Decree with National Tax Preparer H&R Block Requiring Accessibility of Websites and Mobile Apps Under Americans with Disabilities ActRead the Press Release
BOSTON – Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division and U.S. Attorney Carmen M. Ortiz of the District of Massachusetts announced today that they have entered into a consent decree with HRB Digital LLC and HRB Tax Group Inc., subsidiaries of H&R Block Inc., to remedy alleged violations of the Americans with Disabilities Act (ADA). The decree resolves the department’s allegations that individuals with disabilities are denied full and equal enjoyment of largely tax-preparation focused goods and services that are provided through H&R Block’s website and mobile applications. The decree has been filed with the U.S. District Court for the District of Massachusetts for the court’s approval.
On Dec. 11, 2013, the Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts filed a complaint in intervention in the lawsuit National Federal of the Blind (NFB) et al. v. HRB Digital LLC et al. to enforce Title III of the ADA. The decree resolves the complaints by the NFB, two individual plaintiffs and the United States filed in the District of Massachusetts.
H&R Block is one of the largest tax return preparers in the United States. It offers a wide range of services through its website, www.hrblock.com, and its mobile apps, including professional and do-it-yourself tax preparation, instructional videos, office location information, interactive live video conference and chat with tax professionals, online and in-store services and electronic tax-return filing.
The complaint alleged that H&R Block failed to code its website in a manner that would make it accessible to individuals who have vision, hearing and physical disabilities. As described in the complaint, individuals with disabilities use various assistive technologies to access the Internet, including screen reader software, refreshable Braille displays, keyboard navigation and captioning, among others that are not currently compatible with H&R Block’s website. These technologies have been widely used for decades. The recognized international industry standards for web accessibility, known as the Web Content Accessibility Guidelines (WCAG) 2.0, can be found online and are freely available to help companies ensure that individuals with disabilities can fully and equally enjoy their web-based goods and services.
“This landmark decree ensures that individuals with disabilities will have an equal opportunity to independently and conveniently obtain information and complete taxes as others do,” said Acting Assistant Attorney General Samuels. “H&R Block is to be commended for working with the NFB and the Justice Department in resolving to take such steps.”
“For those with disabilities, an inaccessible website puts them at a great disadvantage and further perpetuates a feeling of dependence and reliance on others,” said U.S. Attorney Ortiz. “With thoughtful and proper web design, businesses and organizations can have a great impact on the daily lives of people with disabilities who, like everyone else, seek to enjoy the benefits of technology.”Under the terms of the five year decree, H&R Block’s website, tax filing utility and mobile apps will conform to the Level AA Success Criteria of the WCAG 2.0. According to the decree, the H&R Block website will be accessible for the start of the next tax filing term on Jan. 1, 2015, with additional accessibility deadlines over the following years of the decree. Additionally, HRB Digital and HRB Tax Group have agreed to: appoint a skilled web accessibility coordinator who will report to H&R Block’s enterprise Chief Information Officer; adopt a web accessibility policy; initiate training on accessible design for its web content personnel; evaluate employee and contractor performance based on successful web access programming; conduct regular automated and user group testing; and hire an approved outside consultant to prepare annual independent evaluations of Block’s online accessibility. H&R Block will also pay $45,000 to the two individual plaintiffs, and a $55,000 civil penalty.
Jury Convicts Leader of Houston Hostage Taking OrganizationRead the Press Release
HOUSTON – A federal jury in Houston has convicted Mexican national Samuel Castro-Flores, aka “Chame” or “Chamuco,” 41, on 18 counts to include conspiracy to commit hostage taking, hostage taking and other charges involving smuggling aliens and firearms, announced United States Attorney Kenneth Magidson. The verdict was returned this afternoon following a two-week trial and approximately an hour of deliberation.
The charges in the case stem from an investigation that began in mid-August 2012. Two illegal aliens had been smuggled into the country and their family members began to receive extortion calls demanding money for their release.
On Sept. 7, 2012, agents executed a search warrant at a residence on Amblewood Drive in Houston and encountered 26 illegal aliens, at least two of whom were juveniles, being held hostage inside the residence. According to the victim aliens, upon arrival in Houston they were forced to undress and informed they had been “sold” and would not be released until family members paid for their release. Victims reported they were held in their underwear, in locked rooms with boarded up windows and in deplorable conditions. The victims also indicated they were guarded by men constantly armed with a handgun. Some victims said they were threatened with harm or death if payment was not received.
The evidence at trial showed Castro-Flores was the leader of the organization which held these aliens hostage and extorted their families for thousands of dollars before their release. The evidence demonstrated Castro-Flores took extensive steps to avoid being detected by law enforcement. For example, he asked witnesses to help him present a false story that he was simply a repairman who happened to be at the Amblewood residence on one occasion to fix the air-conditioning.
An air-conditioning repair company owner in Houston reported that he once employed Castro-Flores as a helper in his business but fired him after learning he was involved in smuggling aliens. He also testified Castro-Flores later tried to use him to present a false impression to law enforcement that he was only involved in the air-conditioning business.
Prior to committing the offenses in this case, Castro-Flores was convicted of conspiracy to harbor aliens in the Southern District of Texas in July 2009 and subsequently deported in January 2011. He re-entered the United States after his deportation and was arrested in this case on Dec. 5, 2012, in Houston. Before trial, Castro-Flores pleaded guilty to illegal re-entry, one of the charges from the indictment in the current case.He was convicted of one count of conspiracy to commit hostage taking, five counts of hostage taking, one count of conspiracy to harbor illegal aliens, five counts of harboring illegal aliens, one count of being an alien illegally present in the U.S., one count of
conspiracy to transport illegal aliens, two counts of transportation of illegal aliens, as well as using and carrying a firearm in furtherance of a crime and brandishing that firearm.U.S. District Judge Gray Miller, who presided over the trial, has set sentencing for June 28, 2014. At that time, he faces up to life in prison for each of the hostage taking counts. He also faces up to 20 years for the illegal entry after deportation and up to 10 years for each of the alien harboring and transporting counts. For the firearms charges, he will also face another seven years to life in prison, which must be served consecutively to any other prison term imposed. All the convictions also carry as possible punishment a $250,000 fine.
Already on supervised release for the 2009 alien harboring case, he faces possible revocation of that term and up to another 10 years additional imprisonment.
The investigation leading to the charges in this case was conducted by Homeland Security Investigations in Houston, Washington, D.C., and Virginia along with the Houston Police Department. Assistant United States Attorneys Casey N. MacDonald and Arthur R. Jones prosecuted the case.
Jackson Woman Pleads Guilty to Stolen Identity Refund FraudRead the Press Release
Jackson, Miss – Marietta Harris, 38, of Jackson, pled guilty on March 5, 2014 to conspiring to defraud the United States, announced U.S. Attorney Gregory K. Davis. She will be sentenced on May 15, 2014 by U.S. District Judge Henry T. Wingate and faces a maximum penalty of ten years in prison and a $250,000 fine.
Harris and her co-conspirators defrauded the government by using personal identifying information, including names and social security numbers, which had been stolen from the Central Mississippi Correctional Facility located in Rankin County, the University of Mississippi Medical Center, and other locations. The information was then used to file false tax returns with the IRS which claimed the tax payers were owed a refund. The refunds were then electronically deposited into various bank accounts in Mississippi belonging to Harris and her co-conspirators.
This case was investigated by the U.S. Secret Service and Internal Revenue Service Criminal Investigation with assistance from the Mississippi Attorney General’s Office, the Mississippi Department of Corrections and the Mississippi Department of Revenue. It was prosecuted by Assistant U.S. Attorney Patrick Lemon.If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Honduran National Sentenced for Conspiring to File False Tax Refund Claims and Aggravated Identity TheftRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced SALVADOR SERRANO PORTILLO , 45, a non-resident Honduran national, most recently of Clinton, NC, to 51 months imprisonment, followed by three years of supervised release. PORTILLO was also ordered to pay $156,107 in restitution.
PORTILLO was named in a Criminal Information filed on August 26, 2013, charging him with conspiring to defraud the United States through the filing of fraudulent federal tax refund claims, in violation of Title 18, United States Code, Section 286, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. On October 4, 2013, PORTILLO pled guilty to the charges.
According to the investigation, PORTILLO illegally entered the United States from Honduras in 2001 and settled in the Clinton, NC area. Shortly after his arrival, PORTILLO purchased stolen identifying papers, including a Social Security card and a birth certificate, for an individual PORTILLO knew to be an actual person residing in North Carolina at the time. PORTILLO assumed this individual’s identity to, among other things, obtain employment and health insurance, open bank accounts, and make international wire transfers.
Between 2011 and 2013, the investigation further revealed that PORTILLO and others conspired to file false federal income tax returns by exploiting the Individual Taxpayer Identification Number (ITIN) program administered by the Internal Revenue Service. An ITIN is a nine-digit number that enables resident and nonresident alien taxpayers who are ineligible for a Social Security number to file federal income tax returns. As part of the conspiracy, PORTILLO and others used fraudulent identifying papers, such as Honduran passports, birth certificates, and school records, to apply for and obtain ITINs for individuals who did not reside or work in the United States. The false ITIN information was used, in turn, to file federal income tax returns reporting bogus tax refund claims.
Investigation of this case was conducted by the Internal Revenue Service-Criminal Investigation. The case was prosecuted by former Assistant United States Attorney Gaston B. Williams and Assistant United States Attorney Adam F. Hulbig.
High Speed Chase in Glenn County Leads to Oregon Man Pleading Guilty to Federal ChargesRead the Press Release
SACRAMENTO, Calif. — Joshua Anthony Bond, 25, of Grants Pass, Ore., pleaded guilty today to illicit trafficking in controlled substances and being a felon in possession of firearms, United States Attorney Benjamin B. Wagner announced.
This case is the product of an investigation by the Federal Bureau of Investigation, the Willows office of the California Highway Patrol, and the Glenn County Sheriff's Department. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
According to court documents, on July 11, 2013, a CHP officer observed Bond speeding on Interstate 5 near County Road 57 in Glenn County. The CHP officer followed Bond at high speeds as Bond turned off the highway and through residential neighborhoods in Willows. During his flight, Bond threw a loaded .380-caliber handgun onto a residential street. Bond eventually lost control in a residential cul-de-sac; he was then taken into custody.
Law enforcement officers seized a 9 mm sub-machine gun, a 12 gauge pump shotgun, various types of ammunition, 210 grams of methamphetamine, and two body armor plates.
Bond is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on May 22, 2014. The charges to which Bond pleaded guilty carry a possible sentence of up to life in prison. The plea agreement contemplates a sentence of 15 to 17.5 years in prison. The actual sentence, however, will be determined at the discretion of the court at the hearing.
Hartford Crack Dealer Sentenced to More Than Six Years in Federal PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RAKENT BUNKLEY, also known as “Kent” and “Kent Street,” 25, of Hartford, was sentenced yesterday by U.S. District Judge Alvin W. Thompson in Hartford to 80 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
This matter stems from “Operation Vinefield,” a joint law enforcement investigation headed by the FBI’s Northern Connecticut Violent Crimes Task Force targeting narcotics trafficking and gang violence in Hartford’s North End. As a result of the nine-month investigation, 38 individuals were charged with various offenses related to the distribution of crack cocaine and the unlawful possession and dealing of firearms in and around Hartford.
According to court documents and statements made in court, one of the main targets of the investigation was Dementrius Nave, a member of the AVE street gang with a lengthy criminal history. Court-authorized wiretaps of Nave’s phones, coordinated motor vehicle stops and seizures, and physical surveillance, confirmed that Nave and his associates, including BUNKLEY, conspired to distribute crack cocaine and other narcotics in Hartford’s Northeast neighborhood. BUNKLEY is a member of the “Forty Deuce” set of the AVE.
BUNKLEY’s criminal history includes a state felony conviction stemming from a carjacking robbery. In September 2009, he was sentenced to three years of imprisonment for that offense. Approximately four months after he was released in October 2011, he was intercepted on Nave’s phone conspiring to sell crack cocaine.
BUNKLEY has been detained since his arrest on February 13, 2012. On November 5, 2013, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack cocaine”).
Nave has pleaded guilty and awaits sentencing.This matter has been investigated by the FBI’s Northern Connecticut Violent Crimes Task Force, the Connecticut State Police, the Hartford Police Department, and the Connecticut Department of Correction. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
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U.S. ATTORNEY'S OFFICE
Tom Carson
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[email protected]Greenville Drug Trafficker Sentenced in Operation “No Quarter”Read the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced MICHAEL ANTONIO HARRIS, 38, of Greenville, North Carolina, to 180 months of imprisonment and 10 years of supervised release. HARRIS previously pled guilty to possession with the intent to distribute cocaine.
The Greenville Police Department used a confidential informant to buy crack cocaine from HARRIS on April 10, April 13 and May 3, 2012. The Greenville Police Department also arrested HARRIS when he was found with crack cocaine on October 9, 2012 and March 16, 2013. HARRIS resisted arrest on both occasions. Finally, the Greenville Police Department arrested HARRIS on June 3, 2013, when he was found in possession of 35 grams of cocaine. HARRIS received an enhanced sentenced based on his status as a career offender due to multiple previous convictions for drug and robbery offenses.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Fulton County Man Sentenced to 25 Years in Federal PrisonRead the Press Release
ATLANTA – Michael Winfield has been sentenced to 25 years in federal prison for using a firearm in the commission of an armed bank robbery.
“Winfield’s persistence in pursuing a life of crime is matched by law enforcement’s commitment to requiring him to face justice for those crimes,” said United States Attorney Sally Quillian Yates. “The sentence imposed should serve as notice to others that if you choose to participate in violent crimes, you will be subject to severe penalties.”
According to United States Attorney Yates, the charges and other information presented in court: Winfield was identified and arrested by agents from the FBI after they received an anonymous tip and confirmed Winfield’s identity by bank surveillance videos. The FBI was able to confirm that Winfield had committed three different robberies of two banks and one grocery store. On February 4, 2013, Winfield robbed a Kroger Grocery Store located in Smyrna Ga.; on February 11, 2013, he robbed a BB&T Bank, located in Alpharetta, Ga.; and on February 19, 2013, Winfield robbed a Wells Fargo Bank, located in Tucker, Ga. On December 4, 2013, Winfield pleaded guilty to carrying a firearm during the commission of a crime of violence.
Mr. Winfield had previously been convicted in federal court of armed bank robbery and was sentenced to prison. In 2013, he began to repeat his pattern of committing armed bank robberies. A second federal conviction of carrying a firearm during the commission of a violent crime carries a 25-year mandatory minimum sentence.
Based upon the charge to which he pleaded guilty and his criminal history, Winfield, 42, of Atlanta, Ga., was sentenced by U.S. District Court Judge Stephen C. Jones, to a mandatory minimum sentence of 25 years in prison, to be followed by ten years of supervised release, and ordered to pay restitution in the amount of $8,136.00. Winfield pleaded guilty on December 4, 2013.
This case was investigated by Federal Bureau of Investigation Special Agent Perry Meador.
Assistant United States Attorney Stephanie Smith prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Fort Polk Man Sentenced for Burglary on Military BaseRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Dakota Cole Yarbrough, 20, of Fort Polk, La., was sentenced by U.S. District Judge Richard T. Haik, to serve 12 months in prison and two years of supervised release for one count of simple burglary. Haik also ordered Yarbrough to pay $164.10 in restitution.
According to evidence presented at the guilty plea on July 17, 2013, Yarbrough entered a home on the Fort Polk military base without permission and removed a laptop computer and a wallet containing credit cards and bank cards. He also entered a vehicle outside another residence on the military base without permission and removed $60 and a debit card. He used the debit card from the vehicle to make two purchases in Deridder, La., totaling $100.21 and used the debit cards from the home to make two purchases totaling $164.10.The Fort Polk Directorate of Emergency Services conducted the investigation. Special Assistant U.S. Attorney Edward L. Westfall and Assistant U.S. Attorney Brett L. Grayson prosecuted the case.