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Thursday 6 March 2014
Former Waterbury Detective Sentenced to Prison for Obstructing Tax InvestigationRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ROBERT LIQUINDOLI, 42, of Waterbury, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to five months of imprisonment, followed by one year of supervised release, the first five months of which LIQUINDOLI must serve in home confinement. On November 20, 2013, LIQUINDOLI pleaded guilty to one count of obstruction of the administration of the Internal Revenue laws.
According to court documents and statements made in court, in December 2011, the Internal Revenue Service was conducting an investigation of Thomas Thorndike, a Waterbury tax preparer. In connection with that investigation, the IRS requested to interview LIQUINDOLI, whose 2007 and 2008 tax returns had been prepared by Thorndike. After being contacted by the IRS, LIQUINDOLI sought to obstruct the IRS’s investigation by obtaining false documents that he intended to present to the IRS in support of deductions he claimed on his tax returns in 2007 and 2008. Between December 2011 and February 2012, LIQUINDOLI engaged in an effort to obtain false documents in support of false items on these tax returns, and lied to the IRS concerning the extent to which he possessed original and legitimate documents to support the deductions on his tax returns. LIQUINDOLI also falsely denied that he had attempted to obtain false documents to support those deductions.
LIQUINDOLI, who was formerly employed as a detective with the Waterbury Police Department, was ordered to pay restitution in the amount of $4,489.56.
Thorndike pleaded guilty to tax offenses in October 2012 and, on March 12, 2013, was sentenced to 72 months of imprisonment.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case was prosecuted by Assistant U.S. Attorneys Christopher Mattei and Eric Glover.
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[email protected]Former VA Employee Sentenced to Prison for Theft of Veterans’ Personal InformationRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez-Covington today sentenced David F. Lewis to 6 years in federal prison for access device fraud and aggravated identity theft. As part of his sentence, the court also entered a money judgment in the amount of $105,271.00, the proceeds of the charged criminal conduct. Lewis pleaded guilty on December 10, 2013.
According to court documents and testimony presented in court, Lewis was an employee at the Tampa VA Medical Center. On at least five different dates in 2012, Lewis accessed and printed the personal information, including names, social security numbers, and medical information, of over 100 veterans who were in-patients at the Tampa VA Medical Center. Lewis then gave these documents to someone else in exchange for crack cocaine, knowing that the veterans’ information would be used by others to file fraudulent tax returns in order to fraudulently obtain tax refunds, and in at least one instance, to apply for lines of credit in the veteran’s name. The Department of Veterans Affairs is paying for credit monitoring for those victims known to be affected by Lewis’ theft.
“David Lewis’s sentence today of 72 months holds Lewis accountable for his criminal actions,” says James Robnett, Special Agent in Charge, IRS-CI. “Lewis misused his position of trust as an employee of the James A. Haley Veteran’s Hospital and stole the identities of veterans and war heroes. These identities were used to file false income tax returns. Members of the Tampa Bay Alliance including as the Veterans Administration-Office of Inspector General, the Tampa Police Department together with IRS-CI will continue to aggressively investigate these cases and hold those who commit these crimes accountable for their actions.”
After today's sentencing, Special Agent in Charge Monty Stokes, Office of Inspector General, U.S. Department of Veterans Affairs, said "This case is the collective work of federal, state, and local law enforcement agencies to aggressively pursue those that commit identity theft. The fact that a person who was charged to care for veterans used that position to steal their identity is reprehensible."
“Stealing and selling the identity of a war hero is as low as it gets. Thankfully, the work of the Tax Fraud Alliance in the Tampa Bay Area is making it very difficult to target veterans,” said Tampa Police Chief Jane Castor.
This case was investigated by the Department of Veterans Affairs, Office of the Inspector General, the Internal Revenue Service -- Criminal Investigation, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Former TD Bank Employee and Co-Defendant Plead Guilty in Identity Theft Tax Fraud SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), announce that Tenisha Nkesha Francis, 32, of Lake Worth, and Ryan Michael Francis, 27, of Riviera Beach, pled guilty today for their participation in a stolen identity tax refund scheme. Sentencing is scheduled for September 11, 2014 at 1:30 p.m. before Senior U.S. District Judge Kenneth L. Ryskamp.
Specifically, the defendants each pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2, and one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2. At sentencing, the defendants each face a mandatory term of two years in prison for the aggravated identity theft charge, to run consecutively to any other sentence, and a maximum term of ten years in prison for the theft of government funds charge.
According to court documents, Tenisha Francis worked as a Financial Services Representative at TD Bank. Tenisha Francis opened seven fraudulent accounts at the bank with stolen identification information obtained from co-defendant Ryan Francis. She was paid between $200 and $500 to open each fraudulent account. After opening the accounts, Tenisha Francis performed maintenance on these accounts and changed certain identifiers associated with the accounts, such as customers’ dates of birth, addresses and telephone numbers. Stolen U.S. Treasury checks were deposited into the accounts, and funds were withdrawn via check card purchases, ATM withdrawals and checks payable to third parties including Ryan Francis and his wife, Vanessa Brown, and Ryan Francis’ company, J.A. Kingz Automotive, LLC.
The amount of loss attributable to Tenisha Francis’ relevant conduct is between $120,000 and $200,000. The amount of loss attributable to Ryan Francis’ relevant conduct will be determined at his sentencing hearing.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Rinku Tribuiani.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Owner of Florida Airline Fuel Supply Company Pleads Guilty <br /> in Scheme to Defraud Illinois-Based Ryan International AirlinesRead the Press Release
A former owner and operator of a Florida-based airline fuel supply service company pleaded guilty today to participating in a kickback scheme to defraud Illinois-based Ryan International Airlines, a charter airline company located in Rockford, Ill., the Department of Justice announced.
Sean E. Wagner, the former owner and operator of Aviation Fuel International Inc. (AFI), pleaded guilty in the U.S. District Court for the Southern District of Florida in West Palm Beach to one count of conspiracy to commit honest services wire fraud. On Aug. 13, 2013, a grand jury returned an indictment against Wagner and AFI, charging them for their roles in a conspiracy to defraud Ryan International Airlines. According to the indictment, Wagner and AFI made kickback payments to Wayne Kepple, a former vice president of ground operations for Ryan, in exchange for awarding business to AFI. According to court documents, from at least as early as December 2005 through at least August 2009, Wagner and others at AFI made kickback payments to Kepple totaling more than $200,000 in the form of checks, wire transfers, cash and gift cards. The charges against AFI were dismissed on Feb. 21, 2014.Ryan provided air passenger and cargo services for corporations, private individuals and the U.S. government – including the U.S. Department of Defense and the U.S. Department of Homeland Security.
“These types of kickback schemes subvert the competitive process and increase costs to American consumers,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Antitrust Division will vigorously prosecute individuals who defraud American taxpayers and businesses.”Wagner pleaded guilty to one count of conspiracy to commit honest services wire fraud. The count carries a maximum sentence of 20 years in prison and a $250,000 criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either amount is greater than the statutory maximum fine.
As a result of the ongoing investigation, four other individuals have pleaded guilty and have been ordered to serve sentences ranging from 16 to 87 months in prison and to pay more than $580,000 in restitution.
The investigation is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the U.S. Department of Defense’s Office of Inspector General’s Defense Criminal Investigative Service, Southeast Field Office, headed by Special Agent in Charge John F. Khin, with assistance from the U.S. Attorney’s Office for the Southern District of Florida. Anyone with information concerning anticompetitive conduct in the airline charter services industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm.Former Hilliard Resident Sentenced 5-year Prison Term for Running A $1.5 Million Investment FraudRead the Press Release
CONTACT: Fred Alverson
Public Affairs Officer
COLUMBUS – Jeffrey G. Kelly, 45, formerly of Hilliard, Ohio, was sentenced in U.S. District Court to 60 months imprisonment for defrauding investors out of $1.5 million through a scheme he conducted between 2006 and 2011.
Carter M. Stewart, United States Attorney for the Southern District of Ohio and Kevin R. Cornelius, Special Agent in Charge, Federal Bureau of Investigation (FBI) announced the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr.
Kelly owned and operated several businesses in the Columbus area named Superior Financial Resources, LLC, J.G. Kelly Financial Group, LLC, J.G. Kelly Equities Group, LLC, and JGK Group, LLC. He solicited clients and potential clients to invest in his businesses, promising that their money would be deposited in investment funds that included stocks, real estate investment trusts, bonds and other investments.
Kelly received approximately $1,523,710 from investor clients. Kelly never invested the clients’ money, but instead used the investors’ funds to pay his personal and business expenses as well as to repay earlier investors. The victims Kelly’s investment scheme included family friends, relatives, fellow church members, parents of his children’s schoolmates, and a groomsman from his wedding.
A federal grand jury indicted Kelly in December 2012. Kelly pleaded guilty on May 30, 2013 to offenses involving wire fraud and interstate transportation of a security taken by fraud. As part of the sentence imposed today, Kelly was ordered to pay more than $1.1 million in restitution to the victims of his crimes, in addition to serving three years on supervised release following his prison term. Kelly was remanded into the custody of the U.S. Marshal at the conclusion of today’s hearing to immediately begin serving his prison sentence.
U.S. Attorney Stewart commended the FBI agents who investigated the case with the assistance of the Ohio Department of Commerce Division of Securities, and Assistant U.S. Attorney Dale E. Williams Jr., who prosecuted the case.
# # #Former English Tutor Sentenced for Sexually Exploiting Children in China and the United StatesRead the Press Release
Hector Orjuela Jr., 47, was sentenced today to serve 30 years in prison, followed by a lifetime of supervised release, for molesting children under the age of 12 and producing child pornography, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Assistant Secretary of State for Diplomatic Security Gregory B. Starr.
Orjuela pleaded guilty on Oct. 3, 2013, before U.S. District Court Judge Ellen Segal Huvelle in the District of Columbia, to two counts of engaging in and attempting to engage in illicit sexual conduct in a foreign place and one count of producing child pornography.
According to court documents, Orjuela is a U.S. citizen who worked as an English teacher and tutor in Shanghai, China. In July 2012, Orjuela traveled to Maryland and molested a girl under the age of 12 and produced child pornography of the sexual abuse. In August 2012, Orjuela traveled to China and molested one girl and attempted to molest another, both of whom were under the age of 12 and residing in China at that time. Orjuela traveled back to the United States in early November 2012 and then returned to China later that month where he continued to molest the same two young girls.
This case is a result of investigative efforts led by the FBI Washington Field Office, with assistance from the FBI Beijing Legat Office; the U.S. Department of State’s Bureau of Diplomatic Security’s Regional Security Office in Shanghai; the Shanghai Public Security Bureau’s International Cooperation Division; the Shanghai Criminal Investigation Division and the Shanghai Exit and Entry Bureau. This case was prosecuted by Trial Attorneys Sarah Chang and Mi Yung Park of the Criminal Division’s Child Exploitation and Obscenity Section, with assistance from the U.S. Attorney’s Offices for the District of Columbia and the District of Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Former El Paso Law Enforcement Officer Sentenced to Two Years in Federal PrisonRead the Press Release
In El Paso today, 32-year-old former El Paso Police officer and El Paso County Constable Billy Jack Barrow was sentenced to two years in federal prison on a drug conspiracy charge announced United States Attorney Robert Pitman and Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist.
In addition to the prison term, Senior U.S. District Judge David Briones ordered that Barrow pay a $500 fine and be placed under supervised release for a period of two years after completing his prison term. Judge Briones also ordered that Barrow surrender to federal authorities on or before May 9, 2014, to begin serving his prison term.
On October 31, 2013, Barrow pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine. By pleading guilty, Barrow admitted to tipping off co-conspirators about bar checks and other law enforcement operations while serving as an El Paso County Constable from January 2010 through September 2012.
This investigation was conducted by the Federal Bureau of Investigation and the Drug Enforcement Administration together with the El Paso Police Department and the El Paso County Sheriff’s Office. Assistant United States Attorney John Gibson prosecuted this case on behalf of the Government.
Former Army Corps of Engineers Employee Charged with Bribery of a Public OfficialRead the Press Release
Montgomery, Alabama - A former employee of the United States Army Corps of Engineers made his initial appearance in federal court Wednesday, March 5, 2014, after being indicted by a grand jury for bribery of a public official, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama.
According to the indictment, Dennis Fails, Jr., 55, of Mobile, Ala., solicited a bribe from Kenneth Hornsby, the President and Chief Executive Officer of HCS Group P.C., a firm located in Montgomery, Ala. HCS Group was contracted with the United States Army Corps of Engineers to perform work in Peru. It is alleged that Fails instructed Hornsby to submit billing for nearly $25,000 worth of work that had not been performed. Fails would then ensure the bill was approved for payment and they would split the money between them. After being approached by Fails, Hornsby contacted law enforcement. At their direction, Hornsby submitted the billing which was certified by Fails. Fails later met Hornsby at a rest stop and received $12,000 in cash. Fails was then arrested.
An indictment merely alleges that a crime has been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum potential sentence of 15 years in prison. He will also be subject to a fine of up to $250,000.00 and mandatory restitution if convicted. A trial date for Mr. Fails has not yet been scheduled.
This case was investigated by Special Agents with the United States Army Criminal Investigative Command and the Department of Defense Criminal Investigative Service. Assistant United States Attorney Kevin Davidson is prosecuting the case.
PRESS CONTACT: Clark Morris
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Telephone: (334) 551-1755
Fax: (334) 223-7617Former Air Force Official Sentenced for Receiving Gratuities from Defense ContractorRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that Dennis Charles Toenjes, Sr., 66, was sentenced on the charge of receiving gratuities in connection with his former role as an official with the United States Air Force. Toenjes had previously pled guilty to the charge. Toenjes was sentenced to serve three years of probation, with the first six months to be in home confinement. The district court also ordered Toenjes to pay a fine of $500.00 and pay a special assessment of $100.00.
Evidence revealed in court records shows that on February 3, 2009, Toenjes received and accepted gratuities from Stephen Keith Sweet, an owner of an asbestos abatement company which performed work on Scott Air Force Base. Sweet would not have given such gratuities to Toenjes but for his position as a contracting official with the United States Air Force. Gratuities included Sweet paying for Toenjes’ car repairs and for his home heating and cooling repairs. All payments made by Sweet to Toenjes totaled $9,382.01. Sweet is serving an 18-month sentence of imprisonment for tax fraud and paying gratuities to a government official.
The case was investigated by the Internal Revenue Service’s Criminal Investigations and the United States Air Force’s Office of Special Investigations. The case is being prosecuted by Assistant U.S. Attorney Liam Coonan and Special Assistant United States Attorney Michael Hallock.
Florida Man Charged in Tax SchemeRead the Press Release
Marc Celestin, 34, of Miami, Florida, was charged today by Indictment with eight counts of wire fraud and eight counts of making a false claim against the United States, announced United States Attorney Zane David Memeger. The indictment alleges that from January 2011 to May 2012, Celestin used the stolen identities of a number of people to fraudulently prepare tax returns directing that the tax refund checks be direct deposited to bank accounts opened and controlled by Marc Celestin.
If convicted the defendant faces a maximum possible sentence of 200 years of imprisonment, three years of supervised release, a $4,000,000 fine, and a special assessment of $1,600.
The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Laurie Magid.
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
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PATTY HARTMAN, Media Contact, 215-861-8525Federal Jury Convicts Junction City ManOn Murder, Drug ChargesRead the Press Release
TOPEKA KAN. – A federal jury today returned a verdict convicting a Junction City man of murdering a woman to keep her from giving information to federal law enforcement officers about his involvement in drug trafficking, U.S. Attorney Barry Grissom.
Marcus D. Roberson, 32, Junction City, Kan., was convicted on the following charges:
- One count of murder in the March 3, 2010, shooting of Crystal K. Fisher.
- One count of conspiracy to distribute crack cocaine.
- One count of conspiracy to distribute powder cocaine.
During trial, prosecutors presented evidence that Roberson lured the 25-year-old Fisher to a location near an alley in central Junction City where he shot her four times at close range. Her body was found seated in the driver’s side of her vehicle in the 700 block of West 11th Street in Junction City. She had been shot four times. The murder weapon, a .40 caliber pistol, was found in a pond behind a Walmart in Junction City.
Prosecutors also presented evidence of Roberson’s involvement in a drug trafficking organization that distributed powder and crack cocaine in and throughout the Junction City area.
Sentencing will be set for a later date. He faces a maximum penalty of life imprisonment on the murder count as well as the drug counts, and a fine of up to $10 million on each of the drug counts.
Co-defendants include:
Grissom commended the Junction City Police Department, the Drug Enforcement Administration, Assistant U.S. Attorney Jared Maag and Assistant U.S. Attorney Mike Warner for their work on the case. Also assisting in the investigation were the Riley County Police Department, the Grandview Plaza Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas Bureau of Investigation, the U.S. Army Criminal Investigations Command at Ft. Riley, the Dickinson County Drug Enforcement Unit, the Kansas Department of Wildlife and Parks Tourism and the Park City Police Department.
Kennin Dewberry, who was sentenced to 240 months in prison.
Virok D. Webb, who is awaiting trial.
Jamaica L. Chism, who is set for sentencing April 14.
Alisha A. Escobedo, who is set for sentencing April 21.
Megan N. Fuller, who is set for sentencing April 21.
Caress Jackson, who is set for sentencing April 21.
Keishana Johnson, who is set for sentencing April 21.Federal Judge Sentences Milwaukee Pimp to Additional 77 Months ImprisonmentRead the Press Release
United States Attorney James L. Santelle announced today that Federal District Court Judge Rudolph T. Randa sentenced Milwaukee resident Tyrone McMillian (age: 32) to 77 months imprisonment to follow his 30 year sex-trafficking sentence handed down by Federal District Court Judge Charles N. Clevert, Jr. on November 6, 2013. Today’s sentence followed McMillian’s February 5, 2014 conviction in federal court for, as a convicted felon, being in unlawful possession of firearms and ammunition.
The current case arose from the results of a July 6, 2011 search warrant executed by the Milwaukee Police Department at McMillian’s residence in Brown Deer, Wisconsin. Officers recovered a loaded handgun, an assault rifle, and hundreds of rounds of ammunition for those and other weapons in the search. That search also turned up evidence of McMillian’s involvement in a February 2011 theft of more than $325,000 in protein supplements from a warehouse in Dallas, Texas. An affidavit filed by an agent from the Criminal Division of the Internal Revenue Service detailed McMillian’s receipt and expenditure of funds obtained from the subsequent sale of those protein supplements. McMillian used the proceeds to purchase, among other things, a Bentley automobile for $79,500 and more than $40,000 of custom-made jewelry. In addition to the vehicle and jewelry, Milwaukee Police Department officers seized $94,600 in cash during that search. The cash, automobile, and jewelry were all forfeited to the United States.
The case was investigated by detectives from the Milwaukee Police Department, agents from the Bureau of Alcohol, Tobacco and Firearms, and agents from the Federal Bureau of Investigation working through the Human Trafficking Task Force. This case and the sex-trafficking case, were prosecuted by Assistant United States Attorney Joseph R. Wall.
Federal Agent Charged in Insurance Fraud SchemeRead the Press Release
McALLEN, Texas - Reynaldo Gonzalez, 37, has been arrested following the return of a 13-count federal indictment charging wire fraud, aggravated identity theft and making false statements to federal agents, announced United States Attorney Kenneth Magidson. Gonzalez is a deputy U.S. Marshal in San Antonio.
The sealed indictment was returned yesterday and unsealed today upon his arrest. He is expected to make his initial appearance before U.S. Magistrate Judge John Primimo at 3:00 p.m. today in San Antonio.
The indictment alleges Gonzalez purchased an accident-only insurance plan from the American Family Life Assurance Company (AFLAC) in May 2005. From Feb. 4, 2008, through March 24, 2009, Gonzalez allegedly engaged in a scheme to defraud AFLAC by submitting fraudulent claims alleging he had received medical treatment for various injuries. To accomplish the fraud, Gonzalez used a physician’s signature and tax identification number without the physician’s knowledge or consent, according to the charges. AFLAC, in turn, allegedly sent several benefit checks to Gonzalez as payment for these fraudulent claims.
The indictment further alleges Gonzalez stated to federal agents that the claims legitimately reflected his injuries and resulting examination by the physician. However, the physician had not treated Gonzalez since 2007, according to the allegations.
If convicted, he faces up to 20 years in federal prison on the six wire fraud counts as well as another five years on each of the six counts of making false statements. Aggravated identity theft carries as possible punishment another mandatory two-year-term which must be served consecutively to any other prison term imposed. Each count could also include a fine of up to $250,000.
The investigation was conducted by the FBI with assistance from the Office of the Inspector General. Assistant United States Attorneys Grady J. Leupold and Linda Requénez are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Fargo Man Sentenced in Bank RobberyRead the Press Release
FARGO - U.S. Attorney Timothy Q. Purdon announced that on March 6, 2014, Abraham Clifford Wilson, 47, of Fargo N.D., was sentenced before U.S. District Judge Ralph R. Erickson to 105 months in prison for bank robbery.
In January of 2013 Wilson entered Cornerstone Bank brandishing a handgun and demanding money from the bank teller. Wilson escaped with $2500 in cash and the stolen vehicle he used in the robbery was located in Glyndon Minn. Wilson led law enforcement officers on a high-speed chase before exiting the damaged vehicle and proceeded to flee on foot before his eventual capture.
Judge Erickson also sentenced Wilson to three years supervised release, and that he repays the $2500 to Cornerstone Bank. Wilson was also ordered to pay $100 special assessment to the Crime Victims Fund in addition to his sentence.
The case involved law enforcement officers from the Moorhead, Dilworth, Glyndon and Fargo Police Departments as well as Cass and Clay County Sheriff’s Departments.
Assistant U.S. Attorney Keith Reisenauer Prosecuted the Case.
El Paso Sex Offender Sentenced to Federal Prison for Failure to RegisterRead the Press Release
In El Paso today, 41-year-old Christopher Morris was sentenced to 71 months in federal prison followed by 20 years of supervised release for failure to register as a sex offender announced United States Attorney Robert Pitman and United States Marshal Robert Almonte.
According to court records, Morris was convicted of Sexual Assault in the Second Degree in Arkansas in 2004. As a result, he was sentenced to serve twenty years incarceration with all but five years suspended. In May 2009, Morris relocated to El Paso, but failed to register with the El Paso Police Department or El Paso County Sheriff’s Office.
On December 9, 2013, Morris pleaded guilty to one count of failure to register as a sex offender. In August 2010, Morris was arrested based on a state aggravated sexual assault charge. He was subsequently convicted and sentenced to 30 years incarceration for that offense. Today, U.S. District Judge Philip R. Martinez ordered that five years of Morris’ federal sentence run consecutive to his 30-year state sentence.
This investigation was conducted by the United States Marshals Service together with the El Paso Police Department. Assistant United States Attorneys Kerry Blackburn and Robert Almonte, II, prosecuted this case on behalf of the Government.
Eagle Butte Man Sentenced for Assault Resulting in Serious Bodily InjuryRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on March 3, 2014, by U.S. District Judge Roberto A. Lange.
Joseph Anthony Little Star, age 19, was sentenced to 40 months in custody, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Little Star was indicted by a federal grand jury on July 17, 2013, and pled guilty to Assault Resulting in Serious Bodily Injury on November 6, 2013.
The conviction arose from a July 10, 2013, incident when Little Star, his wife, the victim, and others were celebrating Little Star’s recent marriage. During the party, a verbal altercation occurred between Little Star and the victim, who apparently perceived that Little Star was mistreating his new wife. After the verbal argument, the victim went home. Sometime later, he went back to the residence where the party had been held and used a metal bar to break a window. Little Star went outside to confront the victim and another verbal argument ensued. This verbal argument escalated into a physical confrontation and Little Star got the upper hand and rendered the victim unconscious. At this point, Little Star continued to assault the victim by hitting and beating him.
As a result of Little Star’s unlawful assault, the victim was seriously injured and was taken by air ambulance to Rapid City Regional Hospital, where emergency surgery was performed to relieve the pressure on his brain caused by bleeding. The victim is still being provided medical care for his closed head injuries.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Little Star was remanded to the custody of the U.S Marshals Service to begin serving his sentence.
Eagle Butte Man Sentenced for Aggravated Sexual Contact with A ChildRead the Press Release
United States Attorney Brendan V. Johnson announced that an Eagle Butte, South Dakota, man convicted of Aggravated Sexual Contact with a Child was sentenced on March 4, 2014, by U.S. District Judge Roberto A. Lange.
Austin Wade Bissonette, age 25, was sentenced to 144 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Bissonette was indicted by a federal grand jury on September 17, 2013, and pled guilty to Aggravated Sexual Contact with a Child on December 11, 2013.
The conviction arose from an incident that occurred in Eagle Butte between August 2009 and August 2010, when Bissonette would babysit the victim and her two brothers at his mother’s residence. While the victim was in Bissonette’s care and custody, he sexually abused and had sexual contact with the 7-year old child victim.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case was prosecuted by Assistant U.S. Attorney Mikal Hanson.
Bissonette was remanded to the custody of the U.S. Marshals Service to begin serving his sentence.
Eagle Butte Man Pleads Guilty to Assaulting, Resisting and Impeding Federal Officers and Discharge of A Firearm During A Crime of ViolenceRead the Press Release
United States Attorney Brendan V. Johnson announced that Jason Garreau, age 27, of Eagle Butte, South Dakota, appeared before U.S. District Judge Roberto A. Lange on March 5, 2014, and pled guilty to two counts of a Superseding Indictment that charged him with Assaulting, Resisting and Impeding Federal Officers and Discharge of a Firearm During a Crime of Violence.
The maximum penalty upon conviction on the Assault a Federal Officer charge is 20 years of custody and/or a $250,000 fine, and 3 years of supervised release. The maximum penalty on the Discharge of a Firearm charge is a mandatory minimum of 10 years in custody up to life in prison, consecutive to the sentence imposed on the Assault charge, and/or a $250,000 fine, and 5 years of supervised release. There will be a $200 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The conviction stems from a standoff Garreau had with law enforcement on October 31, 2013, at a Pierre residence. The standoff followed a high speed chase that ensued on October 30, 2013, when law enforcement attempted to serve an arrest warrant on an individual. When the individual’s car was located, police discovered it was being driven by Garreau. Police attempted to execute a traffic stop on the vehicle, but Garreau then led police on a high speed chase, which was aborted on east Highway 34. The Bureau of Indian Affairs soon discovered the vehicle on the Crow Creek Reservation, and a new pursuit ensued. While in pursuit, Garreau made multiple phone calls to his cousin, who came to aid Garreau in the pursuit and the cousin opened fire on law enforcement, which allowed Garreau to flee the scene. The next day, Garreau was located at a residence in Pierre, and a SWAT team was called in to assist in the apprehension. When the SWAT team entered the residence, Garreau fired multiple shots from a Benelli shotgun and a Hi-Point handgun, injuring two police officers. Garreau surrendered and was taken into custody.
Following his plea in Federal court Garreau will also be pleading guilty to one count of Attempted Murder in State Court. The parties have agreed that the sentence imposed in State court will be consecutive to the sentence imposed in Federal court.
The investigation was conducted by the Federal Bureau of Investigation, with assistance from the U.S. Marshals Service, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, Hughes County Sheriff’s Office and the Pierre Police Department. The case is being prosecuted by Assistant U.S. Attorney Meghan N. Dilges. A presentence investigation was ordered and a sentencing date was set for June 2, 2014. The defendant was remanded to the custody of the U.S. Marshals Service pending sentencing.
District Man Sentenced to 18-Month Prison Term for Tax Fraud Related to Embezzlement from Indonesian Airline- Defendant Admitted Failure to Report over $448,000 in Income -Read the Press Release
WASHINGTON - Jon C. Cooper, 64, of Washington, D.C., was sentenced today to an 18-month prison term for one count of tax evasion related to his failure to report over $448,000 in income that he received in 2006.
The sentencing, in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Ronald C. Machen Jr., Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office, and Thomas J. Kelly, Special Agent in Charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI).
Cooper pled guilty to the charge in October 2013. As part of his guilty plea, Cooper admitted that, in December 2006, he and a second defendant, Alan Messner, induced an Indonesian airline company to pay them a $1 million security deposit to lease two aircraft using various false and fraudulent pretenses, representations, and promises – including forged and fraudulent documents. Cooper admitted that, after he received the $1 million security deposit, he transferred $284,500 to Messner in December 2006 and January 2007. Cooper spent the balance of the security deposit for his own personal benefit. Cooper and Messner did not provide the promised aircraft and did not return any funds to the Indonesian airline company.
Cooper admitted that he did not report at least $448,727 of those proceeds on his federal income tax return for 2006. Cooper further admitted that income he failed to report was the proceeds of criminal activity. By under-reporting his income, Cooper claimed a tax refund that year. As a result of Cooper’s tax evasion, Cooper caused a tax loss of at least $140,109 to the United States.
Cooper was sentenced by the Honorable Amy Berman Jackson. As part of his guilty plea, Cooper agreed to pay $140,109 owed to the United States. Cooper further agreed to make restitution of $1 million to the victimized Indonesian airline company. Upon completion of his prison term, Judge Jackson ordered that Cooper be placed on three years of supervised release.
In a related case, Messner, 41, of Rolling Meadows, Ill., pled guilty in August 2013 to one count of tax evasion, admitting that he failed to report any portion of the $284,500 that he received on his federal income tax returns, and admitting that the income came from criminal activity. Messner was sentenced by Judge Jackson on Feb. 21, 2014. She sentenced him to a year and a day in prison, to be followed by three years of supervised release. The judge also ordered him to pay $62,231 in restitution to the United States.
In announcing the sentence, U.S. Attorney Machen, Assistant Director Parlave, and Special Agent in Charge Kelly expressed appreciation for the work done by those who investigated the case from the FBI’s Washington Field Office the Washington Field Office of the IRS-CI. They also acknowledged the efforts of Trial Attorney Jessica Moran, of the Department of Justice’s Tax Division. Finally, they commended the work of those who handled the case from the U.S. Attorney’s Office, including Paralegal Specialists Krishawn Graham and Donna Galindo, and Assistant U.S. Attorneys Richard DiZinno and Jonathan Hooks, who investigated and indicted the case.
14-056Commonwealth Health & Rehab Center Agrees to Settle Claim That It Failed to Provide Effective Communication Services to Deaf IndividualsRead the Press Release
ALEXANDRIA, Va. – The United States Attorney’s Office announced today a $162,500 settlement under the Americans with Disabilities Act (“ADA”) with Commonwealth Health & Rehab Center (“CHRC”), which is located in Fairfax County, Va. and is part of the Commonwealth Care of Roanoke’s network of skilled nursing facilities, to ensure effective communication with individuals who are deaf or hard of hearing in the provision of medical services.
The United States Attorney’s investigation began with a complaint from the public alleging that CHRC violated the ADA by failing to provide appropriate auxiliary aids and services, including sign language interpreter services, to three individuals who are deaf (a resident of CHRC and two members of his family) during critical interactions relating to the patient’s medical care. The complainants alleged that because of CHRC’s failure to provide sign language interpreter services, these three individuals were denied the benefit of effective communication with the skilled nursing facility’s clinical staff and the opportunity to effectively participate in treatment decisions.
“This settlement exemplifies our unwavering commitment to protect the rights of those who are deaf or hard of hearing and to ensure that they are able to communicate with health care professionals, especially when patients and their companions have critical interactions with medical providers,” said Acting U.S. Attorney Boente.
The settlement agreement requires that CHRC pay $160,000 to the three aggrieved individuals and a $2,500 penalty to the United States; provide training to the skilled nursing facility’s staff on the requirements of the ADA; and adopt specific policies and procedures to ensure that auxiliary aids and services are provided promptly to patients and companions who are deaf or hard of hearing.
This matter was handled by Assistant United States Attorney Steven Gordon, who coordinates the Civil Rights Initiative for the United States Attorney’s Office.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against disabled individuals by health care providers, including hospitals. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department’s Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities, and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities in complying with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings, at www.ada.gov/hospcombr.htm. For more information on the ADA and to access these publications, visit http://www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
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.Collin County, Texas, Man Sentenced to 51 Months in Federal Prison for Embezzling Approximately $1 Million from Employer, Hudson Advisors, LLC, in Wire Fraud SchemeRead the Press Release
DALLAS — Steven Chen Yu, 40, of Allen, Texas, was sentenced today by U.S. District Judge Jane J. Boyle to 51 months in federal prison, following his guilty plea in July 2013 to an information charging wire fraud in connection with his attempt to embezzle approximately $1 million from his employer, Hudson Advisors, LLC and its global subsidiaries (Hudson). Judge Boyle also ordered that Yu pay approximately $365,000 in restitution and surrender to the Bureau of Prisons on April 9, 2014. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
Hudson was a globally integrated asset management company that performed due diligence and analysis, asset management and other support services for Lone Star Funds, a leading private equity firm that invested globally in distressed assets. Hudson employed approximately 800 professionals in the U.S. and had affiliate offices in Europe, Canada and Japan. Hudson’s main offices were in Dallas.
Hudson maintained a private client department that employed several private client managers. It was responsible for providing accounting and bill payment services for Hudson owner J.G. As part of his duties, Yu was authorized by Hudson to access all of J.G.’s personal financial information.
From September 2009 through March 2012, Yu engaged in several fraudulent acts which enabled him to embezzle substantial funds belonging to J.G. For example, from September through October 2009, Yu fraudulently re-submitted duplicate invoices for legitimate repair work that had been done on J.G.’s boat, knowing that the invoices had already been paid. Yu substituted his own personal bank account information, and in this manner, was able to fraudulently divert and embezzle $150,572 from J.G.’s accounts.
In another scheme, and in a similar manner, on December 1, 2009, Yu defrauded J.G. by also using duplicate invoices for landscaping work that had previously been done on J.G.’s personal residence in Massachusetts. Yu was able to fraudulently divert and embezzle more than $69,000 in funds from one of J.G.’s trust accounts for duplicate payment on the landscaping work. However, later in December 2009, Yu fraudulently caused the more than $69,000 to be deposited back into the account from which they had been diverted prior to Hudson becoming aware of any of Yu’s unlawful activities in connection with the fraudulent diversion or embezzlement of funds.
As part of a larger scheme, beginning in 2009 and continuing through March 2012, Yu fraudulently used and diverted J.G.’s funds which Yu used to make advance “estimated tax payments” for Yu’s benefit in connection with his own future state income taxes due in Massachusetts. When Yu filed his personal income tax returns with Massachusetts, he claimed that he owed no taxes and requested Massachusetts pay him a complete refund of all the estimated tax payments he had made to the state with funds he had stolen from J.G.
During the period from about 2009 through March 2012, as part of his scheme to defraud, Yu attempted to steal and embezzle a total of approximately $1,292,000 from Hudson owner J.G.
The FBI conducted the investigation; Assistant U.S. Attorney David L. Jarvis prosecuted.
Choctaw Nation Executive Director of Construction Administration Arraigned on Charges of Theft, Conspiracy to Commit Money Laundering and Tax FraudRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JASON BRETT MERIDA, age 41, of Rattan, Oklahoma was arraigned in federal court on March 6, 2014.
The defendant is charged with CONSPIRACY TO COMMIT THEFT OR BRIBERY OF PROGRAMS RECEIVING FEDERAL FUNDS, in violation of Title 18, United States Code, Section 371; THEFT BY AN EMPLOYEE OR OFFICER OF A TRIBAL GOVERNMENT RECEIVING FEDERAL FUNDS, in violation of Title 18, United States Code, Section 666(a)(1)(A) and 2; CONSPIRACY TO COMMIT MONEY LAUNDERING, in violation of Title 18, United States Code, Section 1957 and TAX FRAUD, in violation of Title 26, United States Code, Section 7206(1).
The charges are a result from an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigative Services.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant was released on a $10,000.00 unsecure bond.
The statutory range of punishment for Conspiracy is up to 5 years imprisonment and/or a $250,000 fine. Theft By An Employee Or Officer Of A Tribal Government Receiving Federal Funds and Conspiracy to Commit Money Laundering are both punishable by up to 10 years imprisonment and/or up to a $250,000 fine and Tax Fraud is punishable by up to 3 years imprisonment and/or up to a $250,000 fine.
First Assistant United States Attorney Douglas Horn and Assistant United States Attorney Chris Wilson represented the United States.
“The above named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
Chinese National Convicted of Attempted International Parental KidnappingRead the Press Release
ALEXANDRIA, Va. – Wenjing Liu, 32, of Tianjin, China, was convicted today by a federal jury on charges of international parental kidnapping.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Andrew G. McCabe, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the verdict was accepted by U.S. District Judge Claude M. Hilton.
Liu was indicted on November 6, 2014. According to court records and evidence at trial, on September 4, 2014, Liu accompanied her four-year-old son on a United Airlines direct flight to China. Liu and her husband, the child’s father, were separated but had joint legal custody of the child. Less than 90 minutes before the flight was scheduled to depart Dulles International Airport, Liu sent an email to her estranged husband to advise that she and their son were flying to China that day. The father, who had court-ordered visitation every weekend, emailed Liu back and expressed his opposition to the child going to China. The child’s father then traveled to Dulles International Airport in hopes of stopping Liu from taking their son onto the plane.
Upon arriving at the airport, the father approached officers with the Metropolitan Washington Airports Authority (MWAA), advised them of his estranged wife’s email, and provided a copy of the court order that provided him with weekend visitation. That court order also prohibited either parent from taking their child out of the United States without first obtaining express written notarized consent from the other parent. The MWAA officers contacted United Airlines, who advised that Liu and the child were on board Flight 897, and that the plane had already departed Dulles International Airport on its way to Beijing, China.
After consulting with MWAA and the FBI and when Flight 897 was in Canadian airspace, United Airlines ordered Flight 897 to return to Dulles International Airport. The plane returned approximately 4 hours after it had taken off, and Ms. Liu was arrested for attempted international kidnapping as soon as she got off the plane.
Liu faces a maximum penalty of three years in prison when sentenced on June 5, 2015. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI’s Child Exploitation Task Force. Assistant U.S. Attorneys Rebeca H. Bellows and Carina A. Cuellar are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-372.
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Bucks County Couple Sentenced for Foreclosure Rescue Fraud SchemeRead the Press Release
Scam involved lawyers, mortgage brokers and more than $14.6 million in propertyPHILADELPHIA - Edward G. McCusker, 49, of Chesterbrook, PA, was sentenced today to five years in prison for a massive mortgage fraud scheme that resulted in at least 35 fraudulent mortgage loans worth more than $10 million. His wife Jacqueline, 49, of New Hope, PA, was sentenced to one year of home confinement followed by three years of probation for her role in the crime. A federal jury convicted the couple on June 22, 2011 of conspiracy to commit mail and wire fraud, conspiracy to commit money laundering, wire fraud and mail fraud. U.S. District Court Judge Mary McLaughlin handed down the sentence. In addition to the prison terms, the McCuskers were ordered to forfeit $400,000; Edward McCusker was order to pay a fine of $12,500, a special assessment of $1,000, and complete three years of supervised release; Jacqueline McCusker was ordered to pay a special assessment of $900.
The McCuskers operated Axxium Mortgage, Inc., along with co-defendant John Bariana who pleaded guilty and is awaiting sentencing. Co-defendants Jeffrey A. Bennett and Stephen G. Doherty, owners of the Doylestown law firm Bennett & Doherty, P.C., also pleaded guilty. Doherty was sentenced, yesterday, to one year and one day in prison; Bennett’s sentencing is scheduled for March 7, 2014.
The defendants targeted financially distressed homeowners facing foreclosure, falsely promised them help in saving their homes, engaged in real estate transactions with straw purchasers, and obtained dozens of fraudulent mortgages. The defendants took whatever equity the homeowner had left, funneled it through shell corporations they controlled, used some of it to pay the new mortgages, and put the rest of the equity into their own bank accounts.
The defendants promised financially distressed homeowners that they would find an "investor" who would help them save their home. The defendants would then either purchase the home themselves or arrange for a straw purchaser to obtain a fraudulent mortgage and then transfer of the title of the homeowner's residence to the straw purchaser. The McCuskers, along with Bariana, obtained the fraudulent mortgages by submitting false documents to mortgage lenders and making false claims about the purchasers’ finances. The defendants also concealed from the lender the fact that the homeowner was going to continue to reside in the home and that the mortgage payments were going to continue to be made, in part, by the distressed homeowner and funneled through the straw purchaser. Bariana and Jacqueline McCusker each acted as straw purchasers for ten homes. The defendants also recruited at least seven other persons to act as straw owners in order to obtain additional fraudulent mortgages.
Doherty solicited and referred distressed homeowners to Edward McCusker, and used fraudulent bankruptcy filings for some of the distressed homeowners to delay foreclosure until McCusker had obtained an investor and a mortgage. Bennett handled the closings for the real estate transfers, falsifying the settlement statements and manipulating the information provided to the lender in order to hide the nature of the scheme until after the loan was funded.
This case was investigated by the Federal Bureau of Investigation and the Pennsylvania Department of Banking. It is being prosecuted by Assistant United States Attorney Nancy Rue.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Brooklyn, N.Y., Man Admits Traveling to New Jersey to Violently Extort Divorce Consent from Reluctant HusbandRead the Press Release
TRENTON, N.J. - A Brooklyn, N.Y., man admitted today in Trenton federal court to traveling to New Jersey in order to coerce a Jewish man to give his wife a religious divorce – referred to as a “get” – through threats of violence, U.S. Attorney Paul J. Fishman announced.
David Hellman, 31, a personal trainer, pleaded guilty before U.S. District Judge Freda L. Wolfson to an information charging him with traveling in interstate commerce to commit extortion. His bail conditions include a $500,000 bond and GPS monitoring.
According to documents filed in this case and statements made in court:
On Oct. 9, 2013, Hellman and a group of conspirators – including Jay Goldstein, 59, Moshe Goldstein, 31, Avrohom Goldstein, 34, Simcha Bulmash, 30, Ariel Potash, 40, Binyamin Stimler, 38, and Sholom Shuchat, 29 – traveled from New York to a warehouse in Edison, N.J., with the intent of forcing a Jewish man to give his wife a “get,” a divorce document which, according to Jewish Law, must be presented by a husband to his wife to effect their divorce.
Hellman admitted that when he arrived at the warehouse, the group met with an individual who, unbeknownst to them, was an undercover FBI agent posing as the husband’s brother in law. Hellman admitted that they discussed a plan and prepared to confine, restrain and threaten the victim.
The group was then arrested by a team of FBI agents and charged by criminal complaint – along with rabbis Mendel Epstein, 68, and Martin Wolmark, 55 – in connection with the scheme. Hellman is the first defendant to plead guilty; the charges against the alleged conspirators remain pending. All of the defendants reside in Brooklyn, except Potash and Wolmark, who live in Monsey, N.Y.
During his guilty plea proceeding, Hellman also admitted that on Aug. 22, 2011, he and others went to a residence in Brooklyn where they restrained, assaulted and injured a man in an attempt to extort a divorce from him. That conduct will be considered by the court during sentencing, currently scheduled for June 12, 2014.
Hellman faces a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Aaron T. Ford in Newark, for the investigation leading to today’s guilty plea. He also thanked the Lakewood, N.J., Police Department for their role.
The government is represented by Assistant U.S. Attorneys R. Joseph Gribko and Sarah Wolfe of the U.S. Attorney’s Office in Trenton.
The pending charges and allegations against related defendants are merely allegations, and they are considered innocent unless and until proven guilty.
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Defense counsel: Michael Bachner Esq., New York
Hellman, David Information
Auburn Woman Sentenced to Prison for Fraud: Claimed Cancer Diagnosis to Steal more than $400,000 from Elderly VictimRead the Press Release
A 52-year old Auburn, Washington woman was sentenced today in U.S. District Court in Seattle to two years in prison and three years of supervised release for a fraud scheme in which she claimed to be a cancer patient, announced U.S. Attorney Jenny A. Durkan. Between May 2009 and September 2012, JULIE ANN DAHLQUIST convinced an elderly Auburn resident to support her financially by claiming the money he gave her would pay for her cancer treatment. In fact, DAHLQUIST had no cancer diagnosis and used more than $400,000 to support her gambling addiction. DAHLQUIST pleaded guilty November 15, 2013, to Social Security fraud. At sentencing U.S. District Judge Ricardo S. Martinez ordered her to pay $417,382 in restitution and said the crime was “no less than elder abuse – taking advantage of the victim’s good nature to steal his money.”
According to records filed in the case, DAHLQUIST told the elderly victim that she had been diagnosed with cancer and had no medical insurance or any money for treatment. The victim, concerned for DAHLQUIST’s welfare, wrote her checks to pay for the non-existent treatment. The victim wrote checks for as much as $9,000 about three times a month. In all, the victim wrote 190 checks to DAHLQUIST for more than $400,000. DAHLQUIST used the money for gambling and other expenses. DAHLQUIST also defrauded the Social Security Administration disability program. DAHLQUIST concealed the $400,000 in proceeds from her fraud scheme so that she could collect $8,000 in Supplemental Security Income (SSI) benefits from the Social Security Administration. DAHLQUIST also fraudulently collected more than $8,000 in food and medical benefits from the State of Washington.
Writing to the court prosecutors noted that: “This is a truly outrageous fraud that involved exploiting an elderly retiree’s trust and generous intentions. Julie Dahlquist recognized that (the victim) was a trusting and generous person, and because of those qualities she chose to prey on him. Furthermore, defendant invoked the serious disease of cancer as part of her fraud. The psychological harm to the victim is acute: his family reports that he is “devastated to think that someone he was trying to help would take such extreme advantage of him.”
The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and was prosecuted by Special Assistant United States Attorney Seth Wilkinson as part of a partnership venture between the Social Security Administration Office of General Counsel and the United States Attorney’s Office.
Amherst Man Indicted for Possession of Child PornographyRead the Press Release
BUFFALO, N.Y.—U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a five count Indictment charging Cameron Stroke, 32, of Amherst, N.Y., with possession of child pornography. The charges carry a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the indictment, in February of 2011, the defendant possessed child pornography which contained graphic depictions of the sexual abuse of prepubescent children and children performing sexual acts on animals. The images were found following online postings made by the defendant soliciting minors for sexual purposes.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The Indictment is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Investigators with the New York State Police, under the direction of Major Michael Cerretto, and Detectives with the Cheektowaga Police Department, under the direction of Chief David Zack.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Allenwood Inmate Charged with Possession of A WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that it has filed a criminal information charging possession of a weapon by an inmate today in federal court in Williamsport.
According to United States Attorney Peter J. Smith, Paul Hernandez, age 42, an inmate at the United States Penitentiary-Allenwood, was charged with possession of a weapon. The weapon was discovered by corrections’ officers during a routine search of Hernandez on December 2, 2013.
At the same time the criminal Information was filed, the U.S. Attorney’s Office filed a plea agreement which is subject to the approval of the court.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney William Simmers.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 5 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Wednesday 5 March 2014
Woonsocket Resident Detained for Allegedly Trafficking Fentanyl and HeroinRead the Press Release
PROVIDENCE, R.I. – Alfredo Balestier-Sanchez, aka Negro, 32, of Woonsocket, was ordered detained today by U.S. District Court Magistrate Judge Patricia A. Sullivan on federal charges of possessing and trafficking fentanyl and heroin. Sanchez was arrested Tuesday evening by members of the Woonsocket Police Department and the RI DEA Drug Task Force following a one month investigation during which time Sanchez allegedly sold fentanyl on at least three occasions to a person cooperating with law enforcement.
The investigation and arrest of Sanchez was announced by United States Attorney Peter F. Neronha, Woonsocket Police Chief Thomas S. Carey and John J. Arvanitis, Special Agent in Charge of the Drug Enforcement Administration’s New England field division.
According to an affidavit in support of an arrest warrant and criminal complaint charging Sanchez with three counts of distributing fentanyl, one count of possession with the intent to distribute fentanyl and one count of distribution of heroin, between February 12 and February 20, 2014, at the direction and under the supervision of the Woonsocket Police Department’s Vice/Narcotics Unit and the DEA Drug Task Force, a person cooperating with law enforcement allegedly made three purchases of varying amounts of fentanyl from Sanchez. One of the packets allegedly purchased from Sanchez also tested positive for the presence of heroin.
According to the affidavit filed with court, Woonsocket Police and members of the DEA Drug Task Force executed a court authorized federal search warrant at Sanchez’s Woonsocket residence on Tuesday evening where they seized four packets of fentanyl stashed inside a deodorant tube and items used in the packaging and distribution of fentanyl and heroin.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, Sanchez faces a sentence of up to 20 years in federal prison followed by between 3 years and lifetime supervised release, and a fine of up to $1,000,000 on each charge of distribution of fentanyl, distribution of heroin and possession with the intent to deliver fentanyl.
The case is being prosecuted by Assistant U.S. Attorney Pamela E. Chin.
The DEA Drug Task Force is comprised of law enforcement agents and officers from the DEA, Rhode Island State Police, and the Cranston, East Providence, Newport, Pawtucket, Providence, South Kingstown, Warwick and Woonsocket Police Departments.
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To assist the media and the public, a glossary of federal judicial terms and procedures is available at http://www.justice.gov/usao/justice101/
Contact: 401-709-5357
[email protected]West Seneca Man Indicted for Transportation and Possession of Child PornographyRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury has returned a five count indictment charging Joseph S. Heleniak, 69, of West Seneca, N.Y., with transportation and possession of child pornography. Due to a prior conviction, the transportation charges carry a mandatory minimum sentence of 15 years in prison, a maximum of 40 years and a fine of $250,000.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that the defendant was arrested today, January 24, 2014, following the execution of a search warrant at his residence. According to the indictment, on August 30, 2013, Heleniak sent an e-mail containing three image files of child pornography. The images depicted female children under the age of 16 engaging in sexual activities with adult males.
The indictment was the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, Detectives with the Cheektowaga Police Department under the direction of Chief David Zack, and Investigators with the New York State Police, under the direction of Major Michael Cerretto.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Waterbury Woman Pleads Guilty to Failing to Register as A Sex Offender, Violating Supervised ReleaseRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that GUITANA JONES, 42, formerly of Waterbury, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to one count of failing to register as a sex offender. JONES also admitted to violating the conditions of her supervised release from a previous federal conviction.
According to court documents and statements made in court, in October 2003, JONES was sentenced in federal court to 120 months of imprisonment, followed by three years of supervised release, for conspiracy and use of an interstate facility to transmit information about a minor. Also, in June 2007, she was given a concurrent sentence in state court of risk of injury to a minor and conspiracy to commit risk of injury to a minor. JONES was released from federal prison in May 2010.
As a convicted sex offender, JONES was told that she was required to register and update her registration under the Sex Offender Registration and Notification Act (“SORNA”). Convicted sex offenders must update their address within five days of any move, re-registering in any state to which they move, and verifying their current address with local law enforcement every 90 days. Prior to her release on federal supervision, JONES was told that crossing state lines without registering in the new state or notifying Connecticut of her change of address could result in federal prosecution for failure to register.
In September 2011, JONES requested the Court’s permission to move from Connecticut to Florida. In March 2012, her request was denied and JONES was told that she was not permitted to move to Florida while on federal supervised release.
In May 2013, the U.S. Probation Office learned that JONES had moved to Florida and, at times, had traveled back to Connecticut to avoid detection of her supervised release violation. JONES also tested positive for cocaine use. On June 10, 2013, U.S. Marshals arrested JONES for violating her supervised release. She has been detained since her arrest.
The investigation revealed that, in September 2012, JONES obtained a Florida identification card after providing an address in Miramar, Fla. She also possessed and used a cellular telephone with a Florida area code while residing in Florida between February and April 2013. The Florida Sex Registry has no record of JONES ever applying to register as a sex offender.
When she is sentenced, JONES faces a maximum term of imprisonment of 10 years for failing to register and update a registration as required by SORNA, and a maximum term of imprisonment of two years for violating her supervised release.
This matter was investigated by the United States Marshals Service and is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
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Tom Carson
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[email protected]Vancouver, Washington, Man Sentenced to 24 Months in Federal Prison for Mailing 100 Threatening Letters with White PowderRead the Press Release
Letters Went to U.S. Senators, Representatives, and Members of the MediaPORTLAND, Ore.—U. S. District Judge Michael H. Simon sentenced Christopher Lee Carlson to 24 months in prison today on a charge of conveying false information and a hoax containing a purported biological toxin. Carlson, 41, of Vancouver, Washington, pleaded guilty to mailing approximately 100 threatening letters with white powder to U.S. Senators, Representatives and media personalities in February 2012.
About 24 of the letters were received and opened by staff members before law enforcement was able to intercept the remainder. The letters were sent to Congressional offices in Washington, D.C., and their field offices across the country. Results included evacuated offices, responses by hazardous materials units, decontamination procedures for affected persons, and interrupted workdays. Dozens of law enforcement and emergency response teams responded in 24 federal districts. Examination of the powder revealed it to be celery salt and cornstarch.
The threatening letters expressed frustration with politicians, corporations, and lobbyists. Promising a new American Revolution, some included the warning:
“Oh yeah, the powder. 50 Senators were randomly selected to receive this letter as opposed to the other one. Since I put the bug in ten of these letters, again randomly selected, there’s a 20% chance that you’ve just been exposed. If you aren’t wearing a biohazard suit, anyway.”
In addition to serving 24 months in custody, Carlson must pay $36,311.07 in restitution to state and local law enforcement agencies for expenses incurred in the emergency responses. After serving his prison sentence, Carlson will be on three years of supervised release and must comply with mental health treatment and medication requirements.
U. S. Attorney, Amanda Marshall, noted, “These types of hoaxes threaten the health and safety of the American people. They instill fear in the public, overburden the resources of law enforcement and emergency responders, and harm the nation’s morale and economy.”
The Federal Bureau of Investigation led the nationwide investigation from its Portland office. Valuable assistance was provided by the U.S. Capitol Police and the U.S. Postal Inspection Service.
“Anthrax hoaxes are no joke,” said Kevin Rickett, Acting Special Agent in Charge of the FBI in Oregon. “They cause fear for those who receive these letters, and they cost taxpayers a great deal of money during the resulting investigation. We must treat these events as real threats, and that, in turn, forces agents and staff to spend significant time and resources investigating and resolving these crimes,” he added.
The case was prosecuted by Assistant U. S. Attorneys Stephen F. Peifer and David L. Atkinson.
U.S. Freezes More Than $458 Million Stolen by Former Nigerian Dictator in Largest Kleptocracy Forfeiture Action Ever Brought in the U.S.Read the Press Release
The Department of Justice has frozen more than $458 million in corruption proceeds hidden in bank accounts around the world by former Nigerian dictator Sani Abacha and conspirators. A civil forfeiture complaint unsealed today in the United States District Court in the District of Columbia seeks recovery of more than $550 million in connection with the largest kleptocracy forfeiture action brought in the department’s history.
The restraint of funds announced today includes approximately $313 million in two bank accounts in the Bailiwick of Jersey and $145 million in two bank accounts in France. In addition, four investment portfolios and three bank accounts in the United Kingdom with an expected value of at least $100 million have also been restrained, but the exact amounts in the accounts will be determined at a later date.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.
“General Abacha was one of the most notorious kleptocrats in memory, who embezzled billions from the people of Nigeria while millions lived in poverty,” said Acting Assistant Attorney General Raman. “This is the largest civil forfeiture action to recover the proceeds of foreign official corruption ever brought by the department. Through our Kleptocracy Initiative, we are seizing the assets of foreign leaders who steal funds that properly belong to the citizens they serve. Today’s action sends a clear message: we are determined and equipped to confiscate the ill-gotten riches of corrupt leaders who drain the resources of their countries.”
“We will not let the U.S. banking system be a tool for dictators to hide their criminal proceeds,” said Assistant Director in Charge Parlave. “This action demonstrates the FBI’s ability to combat international corruption and money laundering by seizing the assets of those involved. I want to thank the special agents, financial analysts and prosecutors whose hard work over the years resulted in today’s announcement.”
The over $458 million in frozen funds and the additional assets named in the complaint represent the proceeds of corruption during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998. The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions from the government of Nigeria and others, then laundered their criminal proceeds through the purchase of bonds backed by the United States using U.S. financial institutions.
As alleged in the complaint, General Abacha and others systematically embezzled billions of dollars in public funds from the Central Bank of Nigeria on the false pretense that the funds were necessary for national security. The conspirators withdrew the funds in cash and then moved the money overseas through U.S. financial institutions. General Abacha and his finance minister also allegedly caused the Government of Nigeria to purchase Nigerian government bonds at vastly inflated prices from a company controlled by Bagudu and Mohammed Abacha, generating an illegal windfall of more than $282 million. In addition, General Abacha and his associates allegedly extorted more than $11 million from a French company and its Nigerian affiliate in connection with payments on government contracts. Funds involved in each of these schemes were allegedly laundered through the United States.
The complaint seeks to forfeit bank accounts and investment portfolios with funds located in Bailiwick of Jersey, France and the United Kingdom. On Feb. 25 and 26, 2014, U.S. arrest warrants for the assets were enforced in Jersey and France though mutual legal assistance requests and in the United Kingdom through litigation brought pursuant to the U.K. Civil Jurisdiction and Judgments Act. The complaint also seeks to forfeit five corporate entities registered in the British Virgin Islands.
This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
The investigation was conducted by the FBI. The case is being prosecuted by Trial Attorney Elizabeth Aloi and Assistant Deputy Chief Daniel Claman of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with substantial support from the Criminal Division’s Office of International Affairs. The department appreciates the extensive assistance provided by the Governments of Jersey, France and the United Kingdom in this investigation.Related Materials:
Abacha Complaint
U.S. Attorney, Jefferson County DA Announce Joint Task ForceRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – Eastern District of Texas U.S. Attorney John M. Bales and Jefferson County District Attorney Cory Crenshaw today announced the formation of a multi-jurisdictional Task Force. The mission of the Task Force will be to investigate and prosecute major crimes – more specifically, violent crime and crimes related to the abuse of public trust.
“By combining our investigative and prosecutorial resources, we can more effectively gather and evaluate all cases, and use all of the state and federal prosecution tools needed to stop and punish any criminal activity associated with public corruption," Crenshaw said. “We look forward to ensuring that those who have abused their positions of public trust will be prosecuted and removed from those positions. Our Task Force will bring to justice any individual who has abused the people’s trust and put both the future of our children and our economy at great risk.”
“This Task Force signifies a new and exciting era of collaboration of law enforcement resources in Jefferson County,” said U.S. Attorney Bales. “Our objective is not complicated, but it is bold – we aim to make Jefferson County a safer, better place to live. This unique, collaborative effort will work to ensure that state and federal law enforcement resources are maximized to address our most serious criminal problems.”
The Task Force will be led by Assistant U.S. Attorneys Christopher T. Tortorice and Joseph R. Batte, former Assistant District Attorney Luke Nichols who will rejoin the District Attorney's Office this month, and Assistant District Attorneys Koby Hoffpauir and Logan Campbell. Additionally, the Task Force will evaluate cases that fall under both state and federal prosecutorial jurisdictions. The final prosecutorial jurisdiction will be determined on a case by case basis, and will be determined in the light of prosecutorial efficiency and relevant state and federal laws. The Federal Bureau of Investigation, the Department of Education Office of Inspector General and the Texas Rangers will also be members of the Task Force. ####U.S. Attorney John Walsh's Testimony Before Congress Regarding Departrment of Justice's Marijuana Enforcement EffortsRead the Press Release
Click on link at bottom of page to read Colorado U.S. Attorney John Walsh's testimony presented to the House Committee on Oversight and Government Reform, Subcommittee on Government Operations, on March 4, 2014, regarding the Department of Justice's marijuana enforcement policy.
March 4, 2014 testimony of U.S. Attorney John Walsh, District of Colorado
Two Sentenced for Child Pornography OffensesRead the Press Release
Follow @SDILNewsStephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today that, Clarence Walker, 35, of DuQuoin, Illinois, and David E. Neagle II, 21, of Marion, Illinois, were sentenced in federal court in separate cases for child pornography offenses. Walker had earlier pled guilty on August 8, 2013. The Court sentenced Walker to 132 months in prison, a $500 fine, and 10 years of supervised release following discharge from prison. The Court sentenced Neagle to 12 months in prison, a $100 fine, and 5 years of supervised release following discharge from prison.
The evidence at sentencing established that Walker had previously been convicted in Illinois for sex offenses involving children. After his release from prison for that offense, authorities discovered that he had been downloading child pornography from his computer at his DuQuoin, Illinois, residence.
The evidence at sentencing established that Neagle had been downloading child pornography from his computer at his Marion, Illinois, residence.
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."
The investigation in this case was conducted by the Secret Service Southern Illinois Cyber Crimes Task Force and the Franklin County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Thomas E. Leggans.
Two Individuals and Company Found Guilty of Conspiracy to Sell Trade Secrets to Chinese CompaniesRead the Press Release
A federal jury in San Francisco has found two individuals and one company guilty of economic espionage, theft of trade secrets, bankruptcy fraud, tax evasion, and obstruction of justice for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of companies controlled by the government of the People’s Republic of China (PRC), announced U.S. Attorney Melinda Haag; John P. Carlin, Acting Assistant Attorney General for National Security at the Department of Justice; David Johnson, Special Agent in Charge of the Federal Bureau of Investigation (FBI), San Francisco Division; and Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service (IRS), Criminal Investigation.
The jury found that Walter Lian-Heen Liew (aka Liu Yuanxuan), his company, USA Performance Technology Inc. (USAPTI), and Robert Maegerle conspired to steal trade secrets from E.I. du Pont de Nemours & Company regarding their chloride-route titanium dioxide production technology and sold those secrets for large sums of money to state-owned companies of the PRC. The purpose of their conspiracy was to help those companies develop large-scale chloride-route titanium dioxide production capability in the PRC, including a planned 100,000-ton titanium dioxide factory in Chongqing. This case marks the first federal jury conviction on charges brought under the Economic Espionage Act of 1996.
“Fighting economic espionage and trade secret theft is one of the top priorities of this Office and we will aggressively pursue anyone, anywhere who attempts to steal valuable information from the United States,” said U.S. Attorney Melinda Haag. “As today’s verdict demonstrates, foreign governments threaten our economic and national security by engaging in aggressive and determined efforts to steal U.S. intellectual property. I commend the efforts of the women and men of the FBI and the IRS in protecting America’s businesses and our national security.”
“The theft of America’s trade secrets for the benefit of a foreign government poses a substantial threat to our economic and national security” said Acting Assistant Attorney General John Carlin. “Today’s verdict clearly demonstrates that we take this threat seriously. This case shows that we will not hesitate to pursue and prosecute those who steal from American businesses.”
“The battle against economic espionage has become one of the FBI’s main fronts in its efforts to protect U.S. national security in the 21st century,” said Special Agent in Charge David Johnson.
"This is a case about lying, cheating, and stealing," said José M. Martínez, Special Agent in Charge, IRS Criminal Investigation. "The defendants stole secrets, lied to the bankruptcy court and cheated the IRS and creditors. In today's economic environment, it's more important than ever that the American people feel confident that everyone is playing by the rules and paying their fair share."
The jury also found that Liew, USAPTI, and Maegerle obstructed justice during the course of their conspiracy. The jury found that Liew filed false tax returns for USAPTI and Performance Group, a predecessor company to USAPTI, and made false statements and oaths in bankruptcy proceedings for Performance Group. The guilty verdicts followed a seven-week jury trial before the Honorable Jeffery S. White, U.S. District Court Judge.
Liew, 56, of Walnut Creek, Calif., was convicted of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, conspiracy to obstruct justice, witness tampering, conspiracy to tamper with evidence, false statements, filing false tax returns, false statements in bankruptcy proceedings, and false oath in bankruptcy proceedings. Liew was an owner and president of USAPTI, a company headquartered in Oakland, Calif., that offered consulting services. USAPTI was found guilty of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, and conspiracy to obstruct justice.
Evidence at trial showed that in the 1990s, Liew met with the government of the PRC and was informed that the PRC had prioritized the development of chloride-route titanium dioxide (TiO2) technology. TiO2 is a commercially valuable white pigment with numerous uses, including coloring paint, plastics, and paper. DuPont’s TiO2 chloride-route process also produces titanium tetrachloride, a material with military and aerospace uses. Liew was aware that DuPont had developed industry leading TiO2 technology over many years of research and development and assembled a team of former DuPont employees, including Robert Maegerle, to assist him in his efforts to convey DuPont's TiO2 technology to entities in the PRC. Liew executed contracts with state-owned entities of the PRC for chloride-route TiO2 projects that relied on the transfer of illegally obtained DuPont technology. Liew, Maegerle, and USAPTI obtained and sold DuPont’s TiO2 trade secret to the Pangang Group companies for more than $20 million.
Robert Maegerle, 78, of Harbeson, Del., was found guilty of conspiracy to commit theft of trade secrets, attempted theft of trade secrets, conveying trade secrets, and conspiracy to obstruct justice. Evidence at trial showed that Maegerle was employed by DuPont as an engineer from 1956 to 1991 where he had developed detailed knowledge of DuPont's TiO2 technology and expertise in building TiO2 production lines. He also had access to DuPont TiO2 trade secrets, including specific information regarding DuPont’s TiO2 facility at Kuan Yin, Taiwan. He provided these trade secrets to Liew and USAPTI in furtherance of their contracts with state-owned companies of the PRC for chloride-route TiO2 projects.
The jury also found Liew, Maegerle, and USAPTI guilty of obstructing justice by causing an answer to be filed in a federal civil lawsuit in which they falsely claimed that no information from DuPont’s Kuan Yin plant was used in the USAPTI designs for the development of TiO2 manufacturing facilities. Liew was also found guilty of witness tampering for his efforts to influence a co-defendant’s testimony in the civil lawsuit. The jury also convicted Liew of conspiring with his wife, Christina Liew, to mislead the FBI by corruptly concealing records, documents, and other objects during the FBI’s investigation into their criminal activity.
Liew was also convicted of filing a false income tax return for his company, Performance Group, for calendar years 2006, 2007, and 2008 and for USAPTI in 2009 and 2010. The jury also found Liew guilty of making false statements and a false oath in connection with filing for bankruptcy for Performance Group in 2009.
Liew, as co-owner of USAPTI, entered into contracts worth in excess of $20 million to convey TiO2 trade secret technology to Pangang Group companies. The Liews received millions of dollars of proceeds from these contracts. The proceeds were wired through the United States, Singapore, and ultimately back into several bank accounts in the PRC in the names of relatives of Christina Liew.
DuPont is a company based in Wilmington, Del., that manufactures a wide variety of products, including TiO2. DuPont invented the chloride-route process for manufacturing TiO2 in the late-1940s and since then has invested heavily in research and development to improve that production process. The global titanium dioxide market has been valued at roughly $12 billion per year, and DuPont has the largest share of that market.
The chloride-route process is cleaner, more efficient, and produces a higher-quality product than the sulfate-route process prevalent in the PRC. The object of the defendants’ conspiracy was to convey DuPont’s secret chloride-route technology to the PRC companies for the purpose of building modern TiO2 production facilities in the PRC without investing in time-consuming, costly research and development.
The second superseding indictment also charges, Liew’s wife, Christina Hong Qiao Liew (aka Qiao Hong), with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted theft of trade secrets, possession of trade secrets, witness tampering, conspiracy to tamper with evidence, and false statements. The charges against Ms. Liew were severed from those against Walter Liew, Maegerle, and USAPTI. Ms. Liew will appear before the Honorable Jeffery S. White on Thursday, March 6, 2014, in San Francisco to set the date for her trial.
Tze Chao (aka Zhao Zhi), a former DuPont employee who was also charged in the second superseding indictment, pleaded guilty to conspiracy to commit economic espionage on March 1, 2012.
Hou Shengdong, the Vice Director of the Chloride Process TiO2 Project Department for the Pangang Group, was also charged in the second superseding indictment with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and attempted economic espionage. He is currently a fugitive.
Charges of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and attempted economic espionage are also pending against the four PRC state-owned companies charged in the second superseding indictment.
The sentencing hearings for Liew, Maegerle, and USAPTI are scheduled for June 10, 2014, before Judge White in Oakland, Calif. Liew was remanded to the custody of the U.S. Marshals pending sentencing. Maegerle remains out of custody on conditions of release. The maximum statutory penalties for each of the counts are listed below. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office in San Francisco, the Counterespionage Section of the National Security Division of the U.S. Department of Justice in Washington, D.C., the FBI, Palo Alto Resident Agency, and Oakland Field Office, IRS Criminal Investigation.
For more information about the case and the remaining defendants: www.justice.gov/opa/pr/2012/February/12-nsd-180.htmlTwo Individuals and Company Found Guilty of Conspiracy to Sell Trade Secrets to Chinese CompaniesRead the Press Release
SAN FRANCISCO – A federal jury in San Francisco has found two individuals and one company guilty of economic espionage, theft of trade secrets, bankruptcy fraud, tax evasion, and obstruction of justice for their roles in a long-running effort to obtain U.S. trade secrets for the benefit of companies controlled by the government of the People’s Republic of China (PRC), announced U.S. Attorney Melinda Haag; John P. Carlin, Acting Assistant Attorney General for National Security at the Department of Justice; David Johnson, Special Agent in Charge of the Federal Bureau of Investigation (FBI), San Francisco Division; and Jose Martinez, Special Agent in Charge of the Oakland Field Office, Internal Revenue Service (IRS), Criminal Investigation.
The jury found that Walter Lian-Heen Liew (aka Liu Yuanxuan), his company, USA Performance Technology, Inc. (USAPTI), and Robert Maegerle conspired to steal trade secrets from E.I. du Pont de Nemours & Company regarding their chloride-route titanium dioxide production technology and sold those secrets for large sums of money to state-owned companies of the PRC. The purpose of their conspiracy was to help those companies develop large-scale chloride-route titanium dioxide production capability in the PRC, including a planned 100,000-ton titanium dioxide factory in Chongqing. This case marks the first federal jury conviction on charges brought under the Economic Espionage Act of 1996.
“Fighting economic espionage and trade secret theft is one of the top priorities of this Office and we will aggressively pursue anyone, anywhere who attempts to steal valuable information from the United States,” said U.S. Attorney Melinda Haag. “As today’s verdict demonstrates, foreign governments threaten our economic and national security by engaging in aggressive and determined efforts to steal U.S. intellectual property. I commend the efforts of the women and men of the FBI and the IRS in protecting America’s businesses and our national security.”
Acting Assistant Attorney General John Carlin said: “The theft of America’s trade secrets for the benefit of a foreign government poses a substantial threat to our economic and national security. Today’s verdict clearly demonstrates that we take this threat seriously. This case shows that we will not hesitate to pursue and prosecute those who steal from American businesses.”
“The battle against economic espionage has become one of the FBI’s main fronts in its efforts to protect U.S. national security in the 21st century,” said Special Agent in Charge David Johnson.
"This is a case about lying, cheating, and stealing," said José M. Martínez, Special Agent in Charge, IRS Criminal Investigation. "The defendants stole secrets, lied to the bankruptcy court and cheated the IRS and creditors. In today's economic environment, it's more important than ever that the American people feel confident that everyone is playing by the rules and paying their fair share."
The jury also found that Liew, USAPTI, and Maegerle obstructed justice during the course of their conspiracy. The jury found that Liew filed false tax returns for USAPTI and Performance Group, a predecessor company to USAPTI, and made false statements and oaths in bankruptcy proceedings for Performance Group. The guilty verdicts followed a seven-week jury trial before the Honorable Jeffery S. White, U.S. District Court Judge.
Liew, 56, of Walnut Creek, Calif., was convicted of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, conspiracy to obstruct justice, witness tampering, conspiracy to tamper with evidence, false statements, filing false tax returns, false statements in bankruptcy proceedings, and false oath in bankruptcy proceedings. Liew was an owner and president of USAPTI, a company headquartered in Oakland, Calif., that offered consulting services. USAPTI was found guilty of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted economic espionage, attempted theft of trade secrets, possession of trade secrets, conveying trade secrets, and conspiracy to obstruct justice.
Evidence at trial showed that in the 1990s, Liew met with the government of the PRC and was informed that the PRC had prioritized the development of chloride-route titanium dioxide (TiO2) technology. TiO2 is a commercially valuable white pigment with numerous uses, including coloring paint, plastics, and paper. DuPont’s TiO2 chloride-route process also produces titanium tetrachloride, a material with military and aerospace uses. Liew was aware that DuPont had developed industry leading TiO2 technology over many years of research and development and assembled a team of former DuPont employees, including Robert Maegerle, to assist him in his efforts to convey DuPont's TiO2 technology to entities in the PRC. Liew executed contracts with state-owned entities of the PRC for chloride-route TiO2 projects that relied on the transfer of illegally obtained DuPont technology. Liew, Maegerle, and USAPTI obtained and sold DuPont’s TiO2 trade secret to the Pangang Group companies for more than $20 million.
Robert Maegerle, 78, of Harbeson, Del., was found guilty of conspiracy to commit theft of trade secrets, attempted theft of trade secrets, conveying trade secrets, and conspiracy to obstruct justice. Evidence at trial showed that Maegerle was employed by DuPont as an engineer from 1956 to 1991 where he had developed detailed knowledge of DuPont's TiO2 technology and expertise in building TiO2 production lines. He also had access to DuPont TiO2 trade secrets, including specific information regarding DuPont’s TiO2 facility at Kuan Yin, Taiwan. He provided these trade secrets to Liew and USAPTI in furtherance of their contracts with state-owned companies of the PRC for chloride-route TiO2 projects.
The jury also found Liew, Maegerle, and USAPTI guilty of obstructing justice by causing an answer to be filed in a federal civil lawsuit in which they falsely claimed that no information from DuPont’s Kuan Yin plant was used in the USAPTI designs for the development of TiO2 manufacturing facilities. Liew was also found guilty of witness tampering for his efforts to influence a co-defendant’s testimony in the civil lawsuit. The jury also convicted Liew of conspiring with his wife, Christina Liew, to mislead the FBI by corruptly concealing records, documents, and other objects during the FBI’s investigation into their criminal activity.
Liew was also convicted of filing a false income tax return for his company, Performance Group, for calendar years 2006, 2007, and 2008 and for USAPTI in 2009 and 2010. The jury also found Liew guilty of making false statements and a false oath in connection with filing for bankruptcy for Performance Group in 2009.
Liew, as co-owner of USAPTI, entered into contracts worth in excess of $20 million to convey TiO2 trade secret technology to Pangang Group companies. The Liews received millions of dollars of proceeds from these contracts. The proceeds were wired through the United States, Singapore, and ultimately back into several bank accounts in the PRC in the names of relatives of Christina Liew.
DuPont is a company based in Wilmington, Del., that manufactures a wide variety of products, including TiO2. DuPont invented the chloride-route process for manufacturing TiO2 in the late-1940s and since then has invested heavily in research and development to improve that production process. The global titanium dioxide market has been valued at roughly $12 billion per year, and DuPont has the largest share of that market.
The chloride-route process is cleaner, more efficient, and produces a higher-quality product than the sulfate-route process prevalent in the PRC. The object of the defendants’ conspiracy was to convey DuPont’s secret chloride-route technology to the PRC companies for the purpose of building modern TiO2 production facilities in the PRC without investing in time-consuming, costly research and development.
The second superseding indictment also charges, Liew’s wife, Christina Hong Qiao Liew (aka Qiao Hong), with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, attempted theft of trade secrets, possession of trade secrets, witness tampering, conspiracy to tamper with evidence, and false statements. The charges against Ms. Liew were severed from those against Walter Liew, Maegerle, and USAPTI. Ms. Liew will appear before the Honorable Jeffery S. White on Thursday, March 6, 2014, in San Francisco to set the date for her trial.
Tze Chao (aka Zhao Zhi), a former DuPont employee who was also charged in the second superseding indictment, pleaded guilty to conspiracy to commit economic espionage on March 1, 2012.
Hou Shengdong, the Vice Director of the Chloride Process TiO2 Project Department for the Pangang Group, was also charged in the second superseding indictment with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and attempted economic espionage. He is currently a fugitive.
Charges of conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, and attempted economic espionage are also pending against the four PRC state-owned companies charged in the second superseding indictment.
The sentencing hearings for Liew, Maegerle, and USAPTI are scheduled for June 10, 2014, before Judge White in Oakland, Calif. Liew was remanded to the custody of the U.S. Marshals pending sentencing. Maegerle remains out of custody on conditions of release. The maximum statutory penalties for each of the counts are listed below. However, any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Special Prosecutions and National Security Unit of the U.S. Attorney’s Office in San Francisco, the Counterespionage Section of the National Security Division of the U.S. Department of Justice in Washington, D.C., the FBI, Palo Alto Resident Agency, and Oakland Field Office, IRS Criminal Investigation.
For more information about the case and the remaining defendants: www.justice.gov/opa/pr/2012/February/12-nsd-180.html
The maximum statutory penalties for each of the counts of conviction are as follows:
- Count One, conspiracy to commit economic espionage, in violation of 18 U.S.C. § 1831(a)(5): 15 years imprisonment, $500,000 fine, and restitution. The fine for an organizational defendant is not more than the greatest of $10,000,000 or twice the pecuniary gain or loss.
- Count Two, conspiracy to commit theft of trade secrets, in violation of 18 U.S.C. § 1832(a)(5): 10 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution. The fine for an organizational defendant is not more than the greatest of $5,000,000 or twice the pecuniary gain or loss.
- Count Three, attempted economic espionage, in violation of 18 U.S.C. § 1831(a)(2) & (4): 15 years imprisonment, $500,000 fine, and restitution. The fine for an organizational defendant is not more than the greatest of $10,000,000 or twice the pecuniary gain or loss.
- Count Four, attempted economic espionage, in violation of 18 U.S.C. § 1831(a)(3) & (4): 15 years imprisonment, $500,000 fine, and restitution. The fine for an organizational defendant is not more than the greatest of $10,000,000 or twice the pecuniary gain or loss.
- Count Five, attempted theft of trade secrets:, in violation of 18 U.S.C. § 1831(a)(2) & (4): 10 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution. The fine for an organizational defendant is not more than the greatest of $5,000,000 or twice the pecuniary gain or loss.
- Counts Six and Seven, possession of trade secrets: in violation of 18 U.S.C. § 1832(a)(3): 10 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution. The fine for an organizational defendant is not more than the greatest of $5,000,000 or twice the pecuniary gain or loss.
- Count Eight, conveying trade secrets, in violation of 18 U.S.C. § 1832(a)(2): 10 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution. The fine for an organizational defendant is not more than the greatest of $5,000,000 or twice the pecuniary gain or loss.
- Count Nine, possession of trade secrets, in violation of 18 U.S.C. § 1832(a)(3): 10 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution. The fine for an organizational defendant is not more than the greatest of $5,000,000 or twice the pecuniary gain or loss.
- Count Ten, conspiracy to tamper with witnesses and evidence: in violation of 18 U.S.C. § 1512(k): 20 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution.
- Counts Eleven and Twelve, witness tampering: in violation of 18 U.S.C. § 1512(b)(1): 20 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution.
- Count Thirteen, conspiracy to tamper with evidence: in violation of 18 U.S.C. § 1512(k): 20 years imprisonment, $250,000 fine or twice the gross gain or loss, and restitution.
- Count Fourteen, false statements in a matter within the jurisdiction of the executive branch: in violation of 18 U.S.C. §§ 1001(a)(2) & 2: 5 years imprisonment, $250,000 fine, and restitution.
- Counts Fifteen through Nineteen, filing false tax returns in violation of 26 U.S.C. § 7206(1): 3 years imprisonment and a $100,000 fine.
- Counts Twenty and Twenty-One, false statements in bankruptcy proceedings in violation of 18 U.S.C. § 152(3): 5 years imprisonment, $250,000 fine or twice the gross gain or loss.
- Count Twenty-Two, false oath in a bankruptcy proceeding in violation of 18 U.S.C. § 152(2): 5 years of imprisonment, $250,000 fine or twice the gross gain or loss.
(Liew second superseding indictment )
Two Former Guardsmen Charged in Fraud Against the United StatesRead the Press Release
PITTSBURGH – Two former-enlisted Guardsmen at the 171st Air Refueling Wing in Coraopolis, Pa., have been charged with defrauding the United States Air Force and the Air National Guard of hundreds of thousands of dollars in military pay and benefits, United States Attorney David J. Hickton announced today.
A 110-count indictment, charging conspiracy, honest service wire fraud, false claims and theft of government property, named Gerard J. Mangis, 59, of Glenshaw, Pa., (Shaler Twp.), as the sole defendant.
According to the government, Mangis, a Colonel and former Vice-Wing Commander at the 171st Air Refueling Wing, conspired with Robert St. Clair, a contract employee at the National Guard Bureau at Andrews Air Force Base, to defraud the United States Air Force in false claims for military pay between 2002 and 2011. Mangis is also charged with a scheme to defraud the United States Air Force by enlisting St. Clair in a “no show” job at the 171st, for which in exchange, Mangis received military workdays.
In an Information filed by the government, Robert St. Clair, 50, of Bel Air, Maryland, is charged with one count of conspiracy, eight counts of false claims, and one count of theft of government property. According to the Bill of Information, between 2002 and 2011, St. Clair conspired with Mangis at the 171st Air Refueling Wing to defraud the United States by accepting a ‘no show” enlistment position as a “contracting specialist” at the 171st in exchange for St. Clair providing military work days to Mangis.
“These cases involve two public officials, who engaged in a corrupt, mutually beneficial scheme for personal gain,” stated U.S. Attorney Hickton. “Investigating and exposing corruption, wherever it occurs, is a priority of the U.S. Attorney’s Office and the FBI, and we are fully committed to prosecuting violators of the public trust regardless of position, title or rank.”
“The FBI will continue to aggressively pursue allegations of government fraud in order to root out those who are in the position to abuse their power and defraud the Unites States, “said SAC Perdue. “The indictment of Colonel Mangis demonstrates Pittsburgh FBI’s commitment in that endeavor.”
The law provides for a maximum total sentence per count of five or 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The indictment charging Gerard J. Mangis was returned under seal on March 4 and unsealed today following Mangis’ arrest this morning at his home. He made an Initial Appearance before a federal magistrate judge Wednesday afternoon. He was released on $10,000 unsecured bond.
The Information charging Robert St. Clair was filed today. He will be ordered to appear before a U.S. District Judge at a date and time not yet determined.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Air Force Office of Special Investigations and the Federal Bureau of Investigation conducted the investigation leading to the charges in these cases.
An indictment is an accusation. An Information is a determination that probable cause exists to believe that offenses have been committed by a defendant. All defendants are presumed innocent unless and until proven guilty.
Two Defendants Convicted in Stolen Identity Tax Refund Scheme Resulting in Millions of Dollars in Fraudulent ActivityRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, announce that defendants Herve Wilmore Jr., 29, of Aventura, and Delvin Jean Baptiste, a/k/a “Doo Doo”, 29, of Miramar, were convicted today by a federal jury in Miami for their participation in a stolen identity tax refund scheme resulting in millions of dollars in fraudulent activity. Sentencing is scheduled for June 12, 2014, at 9:30 a.m. before U.S. District Judge Robert N. Scola.
Specifically, each of the defendants was convicted of one count of conspiring to defraud the Internal Revenue Service (IRS), commit wire fraud, and commit aggravated identity theft, all in violation of 18 U.S.C. § 371; two counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2; and two counts of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A(a)(1) and 2. The defendants face a possible maximum statutory sentence of five years in prison for the conspiracy count, 20 years in prison for each count of wire fraud, and two years consecutive in prison for each count of aggravated identity theft.
Evidence at trial established that the defendants conspired to unjustly enrich themselves by recruiting knowing co-conspirators and unknowing victims to put businesses, bank accounts and Electronic Filing Identification Numbers (EFINs) in their names, through which fraudulent transactions would be conducted. To accomplish this, the defendants used the personal identification information of individuals, many deceased, to prepare and file false and fraudulent income tax returns with the IRS. The defendants would obtain possession of fraudulently obtained refunds in the form of United States Treasury and Refund Anticipation Loan checks diverted to addresses or into bank accounts that they caused to be created and controlled. The defendants would then negotiate the fraudulently obtained federal income tax refunds within each other's businesses, and elsewhere, to avoid being detected.
According to evidence at trial and court documents, Wilmore, Baptiste and their co-conspirators caused the filing of approximately $35 million in fraudulent federal income tax return refunds of which the IRS paid out approximately $14 million. Defendant Wilmore was the president of Worldwide Income Tax Multiservices while Baptiste was the president of Royal Tax Multiservices, both tax preparation services located in Miami.
Co-defendants Marie Eleazard, a/k/a “Fanfan,” 32, of Miami, Henry Dorvil, a/k/a “D,” 35, of Hollywood, Brandon Johnson, 29, of Miami Gardens, Ronald Gustave, 36, of Miami, Ruth Cartwright, a/k/a “Princess,” 30, formerly of Plantation, Dukens Eleazard, a/k/a “DK,” 33, of Pembroke Pines, Luckner St Fleur, a/k/a “Nene,” 32, of Miami, Jesse Lamar Harrell, 26, of Miramar, and Corey Williams, 30, of Miami Gardens, each previously pled guilty to one count of conspiring to defraud the government, in violation of 18,U.S.C. § 371, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A(a)(1). Marie Eleazard is scheduled to be sentenced on April 9, 2014 at 8:30 a.m. Sentencing for Dorvil, Johnson, and Gustave is scheduled for April 18, 2014 at 8:30 a.m. Cartwright is scheduled to be sentenced on May 7, 2014 at 8:30 a.m. Dukens Eleazard, St Fleur, and Harrell are scheduled to be sentenced on May 9, 2014 at 8:30 a.m. Williams is scheduled to be sentenced on May 21, 2014 at 8:30 a.m.
Co-defendant Marc Leroy Saint Juste, 47, of Tamarac, previously pled guilty to one count of conspiring to defraud the government, in violation of 18 U.S.C. § 371. He was sentenced to two months in prison, to be followed by one year of supervised release.
Co-defendant John Similien, 24, of Plantation, pled guilty on the third day of the eight day trial to making a false statement, in violation of 18 U.S.C. § 1001(a)(2), and was sentenced to time served.
The indictment was dismissed against Miguel Patterson, 35, of Miami.
U.S. Attorney Ferrer and Assistant Attorney General Keneally commended the investigative efforts of the IRS-CI, FBI, and USSS. The case is being prosecuted by Assistant U.S. Attorney Neil Karadbil and Tax Division Trial Attorney Greg Tortella.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Northbrook Family Members Charged with Transporting Stolen Property Following Multi-State “Shopping” SpreeRead the Press Release
CHICAGO — Three members of a suburban Northbrook family were arrested and charged with interstate transportation of stolen property following a purported shopping odyssey that started on Feb. 17 in Oklahoma, continued two days later at malls in Texas, and wound through Louisiana on Feb. 20, before they returned to Northbrook the next day. The defendants, together with a cooperating individual who acted as their “fence,” and others sold merchandise with a retail value of $7.1 million for a combined total of $4.2 million through their eBay online merchant accounts over the last decade, according to a federal criminal complaint announced today.
The defendants, BRANKO BOGDANOV, 58; his wife, LELA BOGDANOV, 52; and their daughter, JULIA BOGDANOV, 34, were arrested by Secret Service agents yesterday afternoon at their residence on Weller Lane in Northbrook. They were each charged with interstate transportation of stolen property in a criminal complaint that was filed in U.S. District Court. All three are scheduled to appear at 11 a.m. today before U.S. Magistrate Judge Michael Mason.
According to the complaint affidavit, loss prevention executives at Barnes and Noble, Inc., and Toys R Us, Inc., recently told Secret Service agents that their stores had sustained a huge loss in merchandise, including American Girl dolls, Furby robotic toys, Lego blocks, baby monitors, and baby carriers. With eBay’s assistance, the retail executives further determined that a particular eBay account sold large quantities of these specific items and that the amount of merchandise sold often matched the quantities of the same item stolen from one of their stores.
Representatives of Barnes and Noble, Toys R Us, and eBay provided substantial assistance to law enforcement in the investigation.
The store officials further obtained information identifying the owner of the eBay account, who resides in a Chicago suburb. They learned that the individual, who is now cooperating with law enforcement, sold $3.4 million in merchandise, with an estimated retail value of $6 million, over the past 10 years, and that the cooperating individual (CI) had purchased the merchandise from a man the CI knew as “Franko Kalath,” an alias linked to Branko Bogdanov.
Secret Service agents corroborated information from the store and eBay officials, and the CI provided them with extensive hand-written notes and receipts indicating a vast variety of items that the CI allegedly purchased from Branko Bogdanov, including toys, electronic equipment, baby supplies, and kitchenware. Agents also seized from the CI numerous items that the CI had purchased from the individual known as “Franko Kalath,” all of which appeared to be new and in their original packaging.
Further investigation revealed that Bogdanov family members share a single PayPal account and that together they had sold $692,278 in merchandise through their individual eBay accounts. Many of the items sold were similar to the items sold by the CI, the complaint alleges.
As background, the complaint affidavit details additional thefts from Barnes and Noble, Toys R Us, and other retailers that occurred between October and December 2012 in Pikesville, Md., Pembroke Pines, Fla., and Murfreesboro, Tenn., where either telephone records, video surveillance, or both allegedly show the Bogdanovs were at or near at the time and date of specific retail thefts.
On Feb. 19, surveillance followed the defendants from store to store at or near the Woodlands and Willowbrook malls in the vicinity of The Woodlands, Tex., north of Houston. During a traffic stop by Houston police, the Bogdanovs gave officers numerous items from their vehicle, and those items later matched merchandise that various stores confirmed were stolen that day, according to the complaint.
The surveillance continued the following day through Louisiana, where additional merchandise was stolen at stores in Baton Rouge and New Orleans, resulting in another traffic stop that night on northbound I-55 near Canton, Miss. The trio arrived back in Northbrook in Feb. 21. A few days later, the CI received messages from “Franko Kalath” with photos showing an array of merchandise that was available for sale, the charges allege.
The complaint describes repeated instances of Lela Bogdanov wearing a long black skirt that appeared larger and fuller when she exited various retail stores than when she entered. The dress, which was seized shortly after she was arrested, has a blue lining capable of containing multiple rectangular objects, and was allegedly used to cart hidden merchandise from stores. At times, surveillance showed items protruding from the skirt when she exited stores, often accompanied by various diversions instigated by one of more of the family members, according to the complaint.
Interstate transportation of stolen property carries a maximum penalty of 10 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
The arrests and charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Frank Benedetto, Special Agent-in-Charge of the Chicago Office of the U.S. Secret Service. Numerous local police departments are also assisting in the investigation.
The government is being represented by Assistant U.S. Attorney Renato Mariotti.
The public is reminded that a complaint contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Complaint
Three Men Plead Guilty to Causing Serious Environmental Damage by Cultivating Marijuana on an Ecological ReserveRead the Press Release
SAN FRANCISCO – Chou Vang, Vang Pao Yang, and Pao Vang of Eureka, Calif. pleaded guilty in federal court in San Francisco yesterday to willfully injuring federal property stemming from a marijuana grow the three men cultivated on protected federal lands, United States Attorney Melinda Haag announced.
In pleading guilty, C. Vang, 52, Yang, 63, and P. Vang, 45, admitted to trespassing on the King Range National Conservation Area in the summer of 2012 where they cultivated and manufactured marijuana. In doing so, the defendants admitted that they caused serious damage to the environment. The defendants caused environmental damage by clearing away trees and vegetation, which created siltation and erosion issues, heavily using fertilizers, and failing to properly dispose of trash. The defendants’ actions affected the surrounding watershed and ecosystem including habitat for four federally listed threatened species.
The King Range National Conservation Area is often referred to as the “crown jewel” of land protected by the U.S. Bureau of Land Management and is part of a larger system of national conservation areas, monuments, and reserves protecting nationally-significant landscapes throughout the western United States. Protection of this land stemmed from the 1970 King Range Act which was a multi-year effort to conserve one of the most remote, undeveloped, and primitive coastlines in the continental United States. This area is one of the few, and is the largest coastal wilderness area in the contiguous 48 states and is characterized by an abrupt mountain range rising 4,000 feet directly out of the Pacific Ocean, creating a dramatic landscape of forest, pristine watersheds, and various naturally functioning ecosystems. The area provides habitat for four federally listed threatened species: Chinook salmon, Coho salmon, steelhead, and the northern spotted owl. Visitors come from around the world to experience the unique coastal wilderness qualities. This case highlights the significant environmental problems arising from the illegal cultivation of marijuana on federally-protected lands.
“The environmental harm associated with these illegal grows is wreaking havoc on these pristine ecological resources that the federal government is charged with protecting for the public,” said U.S. Attorney Melinda Haag. “We will continue to prosecute those who use our public lands in Northern California to illegally cultivate marijuana at the expense of the environment.”
All three of the defendants were arrested on September 20, 2012, in the King Range National Conservation Area and made their initial appearance in federal court in Eureka on September 24. The defendants were charged with one count of manufacturing marijuana, in violation of 22 U.S.C. § 841(a)(1) & (1)(B)(iv), and one count of willful injury to federal property, in violation of 18 U.S.C. § 1361. Under the plea agreement, the defendants pleaded guilty to willful injury to federal property.
All three of the defendants are scheduled for sentencing on July 23, 2014, at 10:00 a.m. before the Honorable Charles R. Breyer, United States District Court Judge, in San Francisco. The maximum statutory penalty for violating 18 U.S.C. § 1361 is ten years in prison and a $250,000 fine, plus restitution, which the parties agree is $31,000. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Stacey Geis is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of an investigation by the U.S. Bureau of Land Management into large-scale marijuana cultivation on public lands.
(Vang & Yang indictment )
Talent Agent Pleads Guilty in Manhattan Federal Court to Stealing over Half A Million Dollars from Actor ClientsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that PETER STRAIN, a talent agent for film, television, and Broadway actors, pled guilty today in Manhattan federal court to stealing more than half a million dollars from his clients, which he used to purchase personal luxury retail goods and artwork, among other things. STRAIN was originally charged in November 2013, and he pled guilty today before United States District Judge George B. Daniels.
Manhattan U.S. Attorney Preet Bharara said: “Peter Strain repeatedly lied to his clients about the payments for their acting work so that he could use the money for himself, as it suited his needs – including for personal luxury retail items. With today’s plea, Strain has admitted to his fraud, and he will be punished for his conduct.”
New York FBI Assistant Director-in-Charge George Venizelos said: “Peter Strain was making the old saying of robbing one person to pay someone else come to life. In this case he was robbing his clients and then paying himself, lying all along the way to try to cover his tracks. Embezzling more than a half a million dollars from clients is a serious offense. FBI will continue to investigate and bring those to justice who seek to do business in such a deceitful way.”
According to the allegations contained in a Superseding Information filed in Manhattan federal court and statements made in public court proceedings:
Through his talent agency Peter Strain & Associates (“PSA”), STRAIN represented television, film, and stage actors. As a talent agent, STRAIN received funds in trust for his clients for their acting work, and was required to remit those funds to his clients, less his commission, which was typically 10%. However, between approximately 2011 and 2013, STRAIN diverted money he received on behalf of three clients, and used it to, among other things, pay for personal luxury retail goods and artwork. In order to conceal his theft and ensure that his clients allowed him to continue receiving money on their behalf, STRAIN repeatedly lied to his clients about why he had failed to timely remit their money.
Between July 2011 and December 2011, STRAIN received more than $1.4 million in his trust account on behalf of a particular client (“Client-1”), an actor who earned that money for work on a currently broadcast television series. However, STRAIN failed to remit approximately $500,000 of this money to Client-1, and diverted it for his own use. In order to conceal his theft from Client-1, when STRAIN and Client-1 discussed the missing payments by telephone, STRAIN asked Client-1 if he could delay making the payments because, according to STRAIN, he was short on funds as a result of his partners at PSA embezzling money from the firm. STRAIN further claimed that he had recently won a lawsuit against his partners related to the supposed embezzlement, and that he was waiting to receive settlement payments from his partners.
As STRAIN knew, his statements to Client-1 regarding the lawsuit were false. In truth, STRAIN’s partners had filed a lawsuit accusing STRAIN of embezzling funds from PSA, and STRAIN agreed to settle the lawsuit by paying his partners more than $250,000 for their shares in PSA. Moreover, in order to make a payment required under the settlement, and rather than use his own money, STRAIN withdrew $30,000 from an account held in trust for his clients (“the Trust Account”).
Ultimately, during 2012, STRAIN repaid Client-1 by stealing money from a different client, Client-2, an actor who has appeared in several television shows, including a currently broadcast television series. STRAIN then lied to Client-2 in order to conceal his theft. Among other things, STRAIN falsely told Client-2 that STRAIN had recently hired a new business management team and that the new team must have misplaced Client-2’s money. In truth and in fact, STRAIN had used Client-2’s money to repay the money he had stolen from Client-1. STRAIN never fully repaid the money he took from Client-2, and still owes Client-2 in excess of $350,000.
In July 2012, STRAIN failed to timely remit over $200,000 in additional payments to Client-1 for Client-1’s television acting work. In an email to Client-1 asking for additional time to remit the money, STRAIN repeated his false claim that he had “won” the lawsuit with his partners and was waiting for his partners to pay him. STRAIN further falsely claimed that he had Client-1’s money in his possession, but that he was restricted from accessing the money due to court orders. Contrary to his representations to Client-1, and as STRAIN well knew, STRAIN had not “won” the lawsuit, was not restricted from accessing the funds owed to Client-1, and did not have sufficient funds in the Trust Account to pay Client-1. In fact, in the same month that STRAIN claimed he was unable to access Client-1’s money, STRAIN withdrew more than $80,000 from the Trust Account, leaving the account overdrawn by more than $9,000.
Between November 2012 and February 2013, STRAIN also stole tens of thousands of dollars from another client (“Client-3”), an actor who has appeared in several television shows, including a currently broadcast television series. To cover up his theft, STRAIN offered several false excuses to Client-3 for why he had failed to remit Client-3’s money. For example, in November 2012, STRAIN falsely claimed that Client-3’s payments had been lost in the mail. STRAIN also later falsely told Client-3 that the delays in remitting Client-3’s money were caused by a lawsuit, but that a confidentiality clause prevented STRAIN from discussing the details.
STRAIN used the money he stole from his clients to, among other things, pay operating expenses of PSA and to pay for personal luxury retail goods and artwork, some of which he purchased in New York using client money from California bank accounts. Between July 2011 and August 2012, using his clients’ money, STRAIN bought more than $161,000 in jewelry, more than $310,000 in artwork, and more than $57,000 at luxury goods retailers.
STRAIN, 64, of Studio City, California, pled guilty to one count of interstate transportation of stolen property, which carries a maximum term of 10 years in prison. He is scheduled to be sentenced before U.S. District Judge George B. Daniels on April 30, 2014, at 10:00 a.m. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys James Pastore, Jr., and Jason Hernandez are in charge of the prosecution.
Superseding Indictment Charges Widow with Murder in Fort Stewart SlayingRead the Press Release
Dublin, GA – LORETTA SMITH, 41, of Glenwood, Georgia, pled guilty last week before Senior District Court Judge Dudley H. Bowen to defrauding the U. S. Department of Veterans Affairs (“VA”) through fraudulent worker’s compensation claims.
According to the evidence presented during the guilty plea, SMITH, while employed with the VA, submitted bogus worker’s compensation claims to the Department of Labor from 2009 through 2013. SMITH falsely claimed costs for travel which she did not make, and falsely claimed costs for medical treatment which she did not receive. As a result of her bogus claims to the Department of Labor, Smith received more than $460,000 to which she was not entitled.
United States Attorney Edward Tarver stated, “This defendant, who was hired by the federal government to help those in need, chose, instead, to help herself to taxpayer money she wasn’t entitled to receive. Theft of taxpayer money by a federal employee is an abuse of trust and will not be tolerated.”
Monty Stokes, Special Agent in Charge, U. S. Department of Veterans Affairs, Office of Inspector General, said, “We are disappointed in Smith’s betrayal of public trust. She was hired to help veterans, but allegedly chose to cheat the system for her own personal gain. This has been a successful team effort in identifying, investigating, and prosecuting this matter.”
SMITH faces up to 20 years in federal prison, a fine of up to $250,000, and 5 years supervised release. A sentencing hearing will be scheduled after the U. S. Probation Office conducts a presentence investigation. After her guilty plea, SMITH was ordered into custody by Senior Judge Bowen.
The case was investigated by the Department of Labor, Office of Inspector General. Assistant U. S. Attorney Carlton Bourne is prosecuting the case on behalf of the United States. For additional questions, please contact James D. Durham, First Assistant United States Attorney at (912) 201-2547.
Superseding Indictment Charges Widow with Murder in Fort Stewart SlayingRead the Press Release
SAVANNAH, GA -- A superseding indictment was returned late yesterday by a federal grand jury sitting in Savannah, Georgia, charging LILLIE MAE EUBANK, 39, with first degree murder in the beating death of her husband, Specialist John Joseph Beans Eubank, 29, on November 30, 2013, on Fort Stewart. MS. EUBANK’s codefendant and brother, CARL EVAN SWAIN, was charged with the murder in January. Federal law provides that a murder occurring within the special maritime and territorial jurisdiction of the United States is a federal crime. Fort Stewart lies within the territorial jurisdiction of the United States.
EUBANK was first charged last week by criminal complaint. She was ordered detained pending trial by United States Magistrate Judge GR Smith on Tuesday. Mr. Tarver stressed that a criminal complaint and an indictment are only an accusations and are not evidence of guilt. The defendants are entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being investigated by the FBI's Southeast Georgia Violent Crime Task Force, with assistance provided by Army-CID. Assistant U. S. Attorneys Cameron Heaps Ippolito and Brian T. Rafferty are prosecuting the case on behalf of the United States.Statement by Attorney General Eric Holder <br /> on the Senate Vote on Debo AdegbileRead the Press Release
Attorney General Eric Holder released the following statement on the Senate’s procedural vote on Debo Adegbile to serve as the Assistant Attorney General for the Civil Rights Division:
“I’m very disappointed in the Senate’s vote. At a time when significant voting rights cases and other consequential matters are pending, it is more critical than ever to have a confirmed leader for the Civil Rights Division. Mr. Adegbile is a uniquely qualified nominee and an exceptional lawyer. He deserved to have his nomination considered wholly on the merits. His record was either misunderstood, or intentionally misrepresented for the sake of politics. Our legal system hinges on the fundamental ideal that every accused individual has a constitutional right to counsel. It is a very dangerous precedent to set for the legal profession when individual lawyers can have their otherwise sterling qualifications denigrated based solely on the clients that their organizations represent.”
St. Louis County Man Indicted on Embezzlement ChargesRead the Press Release
St. Louis, MO – DEMETRIUS NEAL of St Louis County was indicted by a federal grand jury on one felony count of unauthorized use of an access device.
According to the indictment, Neal embezzled more than $30,000 from a CVS store in Maplewood, Missouri, at which he was employed in 2013 and 2014. Neal submitted phony returns in the store’s terminals and either took cash or directed credits to credit card and bank accounts he controlled. An internal investigation revealed the loss.
If convicted, this charge carries a maximum penalty of ten years in prison and/or fines up to $250,000. In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
The case was investigated by the CVS loss prevention department in cooperation with the Maplewood Police Department. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.
As is always the case, charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.Shooting Gun into the Air Gets Convicted Felon 20 Years in PrisonRead the Press Release
PHILADELPHIA – Francis Aponte, 47, of Philadelphia, was sentenced today to 20 years in prison for possession of a firearm by a convicted felon. On June 17, 2012, Aponte was standing on the sidewalk near Indiana Avenue and 4th Street when two Philadelphia Police Officers spotted him shooting a gun into the air. The officers approached and saw Aponte throw the handgun – a .380 caliber Indian Arms semi-automatic – to the ground. Aponte was arrested and charged as a convicted felon in possession of a firearm. A federal jury found him guilty on December 5, 2013. Of the 20 year term, 15 years is mandatory. In addition to the prison term, U.S. District Court Judge Paul S. Diamond ordered five years of supervised release and a $100 special assessment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Philadelphia Police Department. It was prosecuted by Assistant United States Attorney Jose R. Arteaga.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Scarborough Man Sentenced for Benefits FraudRead the Press Release
Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Lawrence E. Moody, 63, of Scarborough, Maine, was sentenced today in U.S. District Court by
Judge Nancy Torresen to five months in prison, five months of home detention and three years of
supervised release for federal workers’ compensation fraud. He was also ordered to pay
$120,000 in restitution. Moody pled guilty to the charge on September 30, 2013.According to information presented in court, in January 2001, Moody worked as a tractor
trailer driver for the U.S. Postal Service in Portland when he injured his back loading
mail. Moody filed a claim for workers’ compensation benefits and was granted medical benefits
and income replacement benefits at a rate of 75% of his salary. Between 2006 and 2013, Moody
received about $272,000 worth of income replacement benefits. Moody was required by the
workers’ compensation program to promptly report to the U.S. Department of Labor, Office of
Workers Compensation Programs (OWCP) any improvement in his health, a return to work, and
any income he earned. He was also required to periodically certify the same information in
writing.From 2007 to 2013, Moody operated a car hauling business known as “Snowbird
Express.” Using a pickup truck and 47-foot enclosed trailer, he hauled cars for customer to
various locations. Many customers had the defendant transport their cars to Florida for the
winter and back to Maine in the spring. Moody conducted business on a cash basis and charged
his customers by the mile. During that period, he failed to report the income he earned from
Snowbird Express to the U.S. Postal Service, OWCP, or the Internal Revenue Service.In fashioning her sentence, Judge Torresen found that Moody fraudulently obtained
$120,000 in worker’s compensation benefits to which he was not entitled, said that her sentence
was intended to have a deterrent effect because it is difficult to detect these types of crimes, and
noted that taxpayers pay because these crimes go undetected.
The case was investigated by the U.S. Postal Service, Office of Inspector General and the
U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and
Fraud Investigations.Plantation Man Indicted for Distribution and Possession of Child PornographyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Patrick Lynn, Chief, Davie Police Department, announce the indictment of Daniel Jonathan Gast, 28, of Plantation, on child pornography charges.
The two-count indictment charges Gast with one count of distribution of child pornography and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a). If convicted, Gast faces a mandatory minimum sentence of five years in prison and a maximum sentence of up to 20 years in prison. Gast would also be required to register as a sex offender in any jurisdiction in which he lives, works or attends school.
According to documents filed with the court, in August 2013, law enforcement officials assigned to the South Florida Internet Crimes Against Children (ICAC) Task Force were conducting an investigation into the advertisement of suspected child pornography over publicly available Peer to Peer (P2P) networks. Their investigation revealed an IP address registered to Gast at his Plantation residence. A search of Gast’s residence in Plantation yielded no evidence of the suspected child pornography. However, a subsequent search of a music school in Broward County, where Gast worked as a music teacher, resulted in the discovery of Gast’s laptop which had over 95 video files of child pornography, much involving children under the age of 12, who were made to engage in the sexually explicit conduct depicted.
Anyone with questions or concerns should contact Davie Police Department Detective Adam Granit at (954) 693-8365.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the Davie Police Department, and the South Florida ICAC Task Force. The case is being prosecuted by Assistant U.S. Attorney Karen Stewart.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.