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21 April 2014
Brian Wyer Pleads Not Guilty to Identity TheftRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Brian Wyer, 39, a native of Ohio, pleaded not guilty today in United States District Court in Burlington to charges of identity theft. U.S. Magistrate Judge John M. Conroy ordered that Wyer be detained pending trial, which has not been scheduled.
Court records show that on June 26, 2013, a federal grand jury in Rutland returned a two-count indictment charging Wyer with identity theft. According to the indictment, in June 2012, Wyer came to Vermont and fraudulently obtained two non-driver's identification cards in the names of real persons who actually lived in Ohio and Kansas. Wyer allegedly then went to Massachusetts, opened bank accounts in the names of the individuals whose identities he had assumed, and defrauded a bank there of about $75,000. Since last summer, the United States Marshal's Service had been actively hunting for Wyer throughout the United States. Marshals eventually captured Wyer in Chicago last month.
The United States Attorney emphasizes that the charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
If convicted, Wyer faces up to 15 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Vermont Department of Motor Vehicles.
Wyer is represented by Paul Volk. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Bay Area Man Pleads Guilty to Securities Fraud by Insider Trading in the Walt Disney Company’s Acquisition of Marvel Entertainment in August 2009Read the Press Release
LOS ANGELES – A San Francisco man who made approximately $192,000 in profits by purchasing Marvel Entertainment, Inc. stock options immediately prior to its acquisition by The Walt Disney Company in August 2009 pleaded guilty this morning to a federal securities fraud charge.
Toby G. Scammell, 29, pleaded guilty today to one count of securities fraud before United States District Judge S. James Otero.
According to a plea agreement filed in federal court, Scammell learned that Disney planned to acquire another company “that people would recognize right away” from his then-girlfriend, who was an extern at Disney in the summer of 2009 and who worked on the deal to acquire Marvel. Scammell later learned from a supervisor at his then-employer -- which had periodically provided corporate consulting services to Disney and had confidentiality obligations to Disney -- that Disney had previously been interested in acquiring Marvel. Scammell admitted that he learned the planned acquisition by Disney was estimated to close by Labor Day 2009, based on his observations of his girlfriend’s work schedule at Disney and their own travel plans at the time.
Scammell used the information that he learned from his girlfriend to acquire 659 call options to purchase Marvel stock for $5,465. He purchased more than half of the options in his brother's account. Scammell did not tell his girlfriend or his brother about the purchases of the Marvel call options.
Marvel’s stock rose approximately 25 percent after the deal with Disney was announced on August 31, 2009. After the acquisition was publicly disclosed by Disney, Scammell immediately sold his options, realizing more than $192,000 in profits. Scammell transferred $100,000 of the profits out of his brother's account to conceal the trading and profits from his brother.
As a result of the guilty plea, Scammell faces a maximum statutory sentence of 25 years in federal prison when he is sentenced by Judge Otero on July 28, 2014.
Today's guilty plea resolves a case filed in October 2013 when a federal grand jury returned an indictment that named Scammell.
Scammell was previously charged with securities fraud by the Securities and Exchange Commission in a civil lawsuit filed in August 2011. He was later ordered to disgorge his trading profits and pay civil penalties and interest totaling $800,985 in that case.
This case was investigated by the Federal Bureau of Investigation, which received assistance from the Securities and Exchange Commission.
Release No. 14-048
Bakersfield Men Enter Guilty Plea to Damaging Oilfield FacilitiesRead the Press Release
FRESNO, Calif. — Derek A. Brown, 33, and Bryan T. Schaub, 22, of Bakersfield, pleaded guilty today to conspiring to damage energy facilities, United States Attorney Benjamin B. Wagner announced.
According to court documents, Derek A. Brown and Bryan T. Schaub stole programmable logic controllers and other equipment from oil field facilities of Chevron, Occidental, Seneca Western Minerals Corporation, Aera Energy, and Berry Petroleum during 2011 and 2012. Programmable logic controllers are computers that control the opening and closing of valves in the oil fields. The theft of a programmable logic controller creates the risk of an oil spill or loss of production if not detected and remedied in time. The total loss of equipment by the oil companies exceeded $200,000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Department. Assistant United States Attorneys Duce Rice and Michael Tierney are prosecuting the case.
Brown and Schaub are scheduled to be sentenced by United States District Judge Anthony W. Ishii July 14, 2014. They face a maximum statutory penalty of five years in prison, restitution, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Attorney General Holder: Justice Department Set to Expand Clemency Criteria, Will Prepare for Wave of Applications from Drug Offenders in Federal PrisonRead the Press Release
WASHINGTON—In an important step to reduce sentencing disparities for drug offenders in the federal prison system, Attorney General Eric Holder on Monday announced that the Justice Department will soon detail new, more expansive criteria that the department will use in considering when to recommend clemency applications for President Obama’s review.
In anticipation of the increase of eligible petitioners, the Justice Department is preparing to assign lawyers--with backgrounds in both prosecution and defense – to review the applications.
“The White House has indicated it wants to consider additional clemency applications, to restore a degree of justice, fairness and proportionality for deserving individuals who do not pose a threat to public safety,” said Attorney General Holder in a video message posted on the department’s website. “The Justice Department is committed to recommending as many qualified applicants as possible for reduced sentences.”
Later this week, Deputy Attorney General James M. Cole is expected to announce more specific details about the expanded criteria the department will use and the logistical effort underway to ensure proper reviews of the anticipated wave of applications.
The complete text of Attorney General Holder’s video message is below:
“In 2010, President Obama signed the Fair Sentencing Act, reducing unfair disparities in sentences imposed on people for offenses involving different forms of cocaine.
“But there are still too many people in federal prison who were sentenced under the old regime – and who, as a result, will have to spend far more time in prison than they would if sentenced today for exactly the same crime.
“This is simply not right.
“Legislation pending in Congress would help address these types of cases. In the meantime, President Obama took a sensible step towards addressing this situation by granting commutations last December to eight men and women who had each served more than 15 years in prison for crack cocaine offenses. For two of these individuals, it was the first conviction they’d ever received – yet, due to mandatory minimum guidelines that were considered severe at the time, and are profoundly out of date today – they and four others received life sentences.
“These stories illustrate the vital role that the clemency process can play in America’s justice system.
“The White House has indicated it wants to consider additional clemency applications, to restore a degree of justice, fairness, and proportionality for deserving individuals who do not pose a threat to public safety. The Justice Department is committed to recommending as many qualified applicants as possible for reduced sentences.
“Later this week, the deputy attorney general will announce new criteria that the department will consider when recommending applications for the President’s review. This new and improved approach will make the criteria for clemency recommendation more expansive. This will allow the Department of Justice and the president to consider requests from a larger field of eligible individuals.
“Once these reforms go into effect, we expect to receive thousands of additional applications for clemency. And we at the Department of Justice will meet this need by assigning potentially dozens of lawyers – with backgrounds in both prosecution and defense – to review applications and provide the rigorous scrutiny that all clemency applications require.
“As a society, we pay much too high a price whenever our system fails to deliver the just outcomes necessary to deter and punish crime, to keep us safe, and to ensure that those who have paid their debts have a chance to become productive citizens.
“Our expanded clemency application process will aid in this effort. And it will advance the aims of our innovative new Smart on Crime initiative – to strengthen the criminal justice system, promote public safety and deliver on the promise of equal justice under law.”
The full video message is available at http://www.justice.gov/agwa.php.
Albuquerque Man Pleads Guilty to Federal Child Pornography ChargesRead the Press Release
ALBUQUERQUE – Joshua Iben, 21, of Albuquerque, N.M., pleaded guilty this morning to federal child pornography charges. The guilty plea was entered without the benefit of a plea agreement.
Iben was arrested on Nov. 21, 2013, based on an FBI investigation that began in July 2013 and revealed that an IP address subscribed to Iben’s residential address was being used to share child pornography images. According to the criminal complaint, on Nov. 20, 2013, FBI agents executed a federal search warrant at Iben’s residence and seized computers and computer-related media. While the search warrant was being executed, Iben participated in a voluntary, recorded interview during which he admitted began sharing child pornography images years ago and last received or sent such images by email the week before. A subsequent forensic examination of a laptop computer taken from Iben’s residence revealed that it contains images consistent with child pornography.On Dec. 17, 2013, Iben was indicted and charged with two counts of receipt of child pornography; two counts of distribution of child pornography; and one count of possession of child pornography. The indictment alleged that Iben received child pornography on two occasions on April 29, 2013, and distributed child pornography on two occasions on Sept. 20, 2013. It also alleged that Iben possessed child pornography on Nov. 20, 2013, and that Iben committed all five offenses in Bernalillo County, N.M.
Today Iben entered guilty pleas to all five counts of the indictment.
Iben has been in federal custody since his arrest and remains detained pending his sentencing hearing, which has yet to be scheduled. At sentencing, Iben faces a federal prison term of not less than five years and not more than 20 years. Iben also will be required to register as a sex offender.
This case was investigated by the Albuquerque office of the FBI and the New Mexico Regional Computer Forensics Laboratory. It is being prosecuted by Assistant U.S. Attorney Marisa A. Lizarraga as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.Air Force NCO Pleads Guilty to Sexually Exploiting Toddlers and Children to Produce Child PornographyRead the Press Release
Greenbelt, Maryland –William S. Gazafi, age 44, of Lusby, Maryland, pleaded guilty today to six counts of sexually exploiting a minor to produce child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; and Brigadier General Kevin J. Jacobsen, Commander Air Force Office of Special Investigations.
According to the indictment, court documents and statements made at his plea hearing, on August 15, 2013, Gazafi engaged in a chat on a website dedicated to incest discussions with an undercover officer. During the chat, Gazafi discussed his sexual interest in children and advised that he had been drugging and molesting several children, including an infant. During the chat, Gazafi sent seven images to the undercover officer, three of which were child pornography he stated he produced after drugging the child. Gazafi was subsequently identified and arrested. At the time of his arrest, Gazafi was carrying multiple digital media items. A forensic examination of those items and others seized from his residence revealed videos and images that Gazafi produced of children engaged in sexually explicit conduct, including one child as young as five months old. The images also depict children bound and handcuffed while sleeping. Gazafi is a non-commissioned officer in the U.S. Air Force working at Andrews Air Force Base.
Gazafi faces a minimum mandatory sentence of 15 years in prison and a maximum of 30 years in prison on each of the six counts, followed by up to lifetime of supervised release. U.S. District Judge Roger W. Titus has scheduled sentencing for June 23, 2014, at 1:00 p.m. Gazafi remains detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended the FBI, Air Force Office of Special Investigations and the Calvert County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Special Assistant U.S. Attorney LisaMarie Freitas of the U.S. Justice Department, Criminal Division, Child Exploitation and Obscenity Section and Assistant U.S. Attorney Thomas Sullivan, who are prosecuting the case.
Additional Indictments Returned by Federal Grand JuryRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistCLARKSBURG, WEST VIRGINIA — United States Attorney William J. Ihlenfeld, II, announced additional indictments that were recently returned by the Federal Grand Jury.
Ihlenfeld announced that Andrew W. BOLYARD, age 22, of Morgantown, West Virginia, and Ranad Jamal STRAUGHTER, of Westland, Michigan, were named in a two-count Indictment charging them each with “Conspiracy to Distribute Oxycodone” and “Possession with Intent to Distribute Oxycodone.” BOLYARD and STRAUGHTER face up to 20 years in prison on each of the charges. The U.S. Attorney’s Office is also seeking to forfeit $6,906 which was seized on March 17, 2014. This case will be prosecuted by Assistant U.S. Attorney Zelda E. Wesley, and was investigated by the Mon Valley Drug Task Force.
Kasey Thacker MCSHANN, age 38, of Hepizabah, West Virginia, was named in a one-count Indictment charging her with “Theft of Government Funds.” MCSHANN faces up to 10 years in prison for allegedly stealing death and indemnity compensation benefits from the Veterans Administration. This case will be prosecuted by Assistant U.S. Attorney Andrew R. Cogar and was investigated by the Department of Veteran Affairs, Office of Inspector General.
Petrus HAWKINS, age 34, of Clarksburg, West Virginia, was named in a one-count Indictment charging him with “Felon in Possession of a Firearm.” HAWKINS faces up to 10 years in prison. This case will be prosecuted by Criminal Chief Shawn A. Morgan and was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Indictments are only accusations, and a defendant is presumed innocent unless and until proven guilty.
18 April 2014
Week in Review – South BendRead the Press Release
South Bend, Indiana — The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS before Magistrate Judge Christopher A. Nuechterlein:
Timothy Heckaman, 52, of Bremen, Indiana pled guilty to the felony offense of theft of government property . The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Department of Labor.Sentencing has been set for 7/22/2014.This case is being prosecuted by Assistant United States Attorney Barbara Brook.
Frederick Dotson, 40, of Mishawaka, Indiana pled guilty to the felony offense of possessing a firearm in furtherance of a drug trafficking crime . The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Drug Enforcement Agency.Sentencing has been set for 7/17/2014.This case is being prosecuted by Assistant United States Attorney Frank Shaffer.
Leroy Clark, 22, of South Bend, Indiana pled guilty to the felony offense of being a felon in possession of a firearm . The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has been set for 7/24/2014.This case is being prosecuted by Assistant United States Attorney Jesse Barrett.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION before Magistrate Judge Christopher A. Nuechterlein:
Ronald Simmons, 44, of Goshen, Indiana was sentenced to 1 year probation and ordered to pay a fine of $1000 after pleading guilty to the misdemeanor offense of taking, killing, or possessing migratory birds.According to documents filed in this case, in March 2012, Simmons illegally killed and took migratory birds native to the United States or its territories and protected under the Migratory Bird Treaty Act, specifically great horned owls and red tailed hawks.This case was the result of an investigation by the Department of Fish and Wildlife Services.This case was prosecuted by Assistant United States Attorney Donald Schmid.
Week in Review – Fort WayneRead the Press Release
Fort Wayne, Indiana —The United States Attorney’s Office announced the following activity in Federal Court:
PLEAS before United States Magistrate Judge Roger B. Cosbey:
Trevor Rodriguez, 23, of Fort Wayne, Indiana pled guilty to the felony offenses of knowingly selling a firearm to a convicted felon and aiding and abetting . The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lovita Morris-King.
Devonte Travier, 23, of Fort Wayne, Indiana pled guilty to the felony offense of aiding and abetting the use and carrying of a firearm during and in relation to a crime of violence . The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Tina Nommay.
Travon Russell, 22, of Fort Wayne, Indiana pled guilty to the felony offense of being a convicted felon in possession of a firearm . The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
Deyante Stephens, 22, of Fort Wayne, Indiana pled guilty to the felony offense of aiding and abetting armed bank robbery . The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigation, the Northeast Indiana Federal Bank Robbery Task Force and the Fort Wayne Police Department.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Anthony Geller.
Darwin Altamirano, 30, of Fort Wayne, Indiana pled guilty to the felony offense of being a misprision of a felony . The magistrate is recommending that the district court accept the tendered guilty plea.Parties have 14 days in which to object to the magistrate judge’s recommendation. This charge was filed as a result of an investigation by the Federal Bureau of Investigations Fort Wayne Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Haven Police Department, Steuben County Sheriff's Department, Elkhart County Interdiction and Covert Enforcement Unit, South Bend Police Department and the IMAGE Drug Task Force.Sentencing has not been set.This case is being prosecuted by Assistant United States Attorney Lesley Miller Lowery.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITION before District Judge Theresa L. Springmann:
Whitney Sparkman, 26, of Warsaw, Indiana was sentenced to 2 years probation after pleading guilty to the felony offense of conspiracy to distribute a controlled substance.According to documents filed in this case, in July 2010, Sparkman was involved in the transport of marijuana from Arizona to the Northern District of Indiana for distribution.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Javier Madrigal, 36, of Wawaka, Indiana was sentenced to 262 months imprisonment, 5 years supervised release and to pay $22,729.38 in restitution after pleading guilty to the felony offense of distribution of methamphetamine.According to documents filed in this case, in 2013, Madrigal, a major drug trafficker, was involved in the distribution of more than 50 grams of methamphetamine.This case was the result of an investigation by the Drug Enforcement Agency, and the IMAGE Drug Task force, Indiana State Police, Bureau of Alcohol Tobacco Firearms and Explosives, Ligonier Police Department, the Fort Wayne Police Department and the FWPD Emergency Services Team.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Jasper Williams, 26, of Fort Wayne, Indiana was sentenced to 30 months imprisonment and 60 months imprisonment to be served consecutively, 3 years supervised release and to pay $280 in restitution after pleading guilty to the felony offense of knowingly or intentionally possessing with the intent to distribute a controlled substance and with knowingly carrying a firearm during and in relation to a drug trafficking crime.According to documents filed in this case, in April 2012, Williams sold crack and carried a Hi-Point, .40 caliber firearm while distributing the narcotic.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Beth Boger, 47, of Fort Wayne, Indiana was sentenced to 30 months imprisonment, 3 years supervised release and to pay $364,395 in restitution after pleading guilty to the felony offense of wire fraud and income tax evasion.According to documents filed in this case, in March 2006, Boger filed a false tax return greatly reducing her taxable income and tax due to the United States government.This case was the result of an investigation by the Internal Revenue Service.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Trent Moore, 44, of Fort Wayne, Indiana was sentenced to 188 months imprisonment with 8 years supervised release after pleading guilty to the felony offense of distribution of cocaine and crack.According to documents filed in this case, between February and June 2010, Moore sold more than 50 grams of crack.In April 2010, Moore also sold cocaine.This case was the result of an investigation by the Federal Bureau of Investigation.This case was prosecuted by Assistant United States Attorney Lesley Miller-Lowery.
Jonathan Aramburo, 26, of Warsaw, Indiana was sentenced to 157 months imprisonment with 4 years supervised release after pleading guilty to the felony offenses of carrying a firearm during and relation to a drug trafficking crime and conspiracy to distribute more than 100 kilograms of marijuana.According to documents filed in this case, from January 2010 until February 2011, Aramburo and others were involved in a conspiracy to distribute marijuana in the Northern District of Indiana.This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kosciusko County Drug Task Force and the Whitley County Sheriff's Department.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Antonio Flores, 26, of Fort Wayne, Indiana was sentenced to 120 months imprisonment with 5 years supervised release after pleading guilty to the felony offense of conspiracy to distribute and possess with intent to distribute cocaine and marijuana.According to documents filed in this case, from January 2011 until March 2011, Flores along with several others, trafficked narcotics in the Fort Wayne area.This case was the result of an investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives, Fort Wayne Safe Streets Task Force, Indiana State Police, Fort Wayne Police Department, Allen County Police Department, Allen County Drug Task Force, New Haven Police Department, with assistance from GRIT and the Indianapolis Metro PD.This case was prosecuted by Assistant United States Attorney Anthony Geller.
Week in Review - HammondRead the Press Release
Hammond, Indiana - The United States Attorney’s Office announced the following activity in Federal Court:
INDICTMENTS:
Jeremiah Ellis, 28, and Ashley Patterson, 24, both of East Chicago, Indiana were charged with the bank robbery of the First Merchants Bank in East Chicago and with the use of a firearm during and in relation to a crime of violence.These charges were filed as the result of an investigation by the Federal Bureau of Investigation and the Chicago Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
DeCarlos Frazier, 30, of Chicago, Illinois, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Akeem Dillon, 28, of Chicago, Illinois, was charged with possession of a firearm by a convicted felon.This charge was filed as the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Chicago Police Department.This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas McGrath.
William D. Cantrell, 59, of Valparaiso, Indiana, was charged with internet stalking.This charge was filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Susan Collins.
Nathan Huey-Dingle, 32, of South Bend, Indiana, was charged in a superseding indictment with additional counts of a Mann Act violation, sex trafficking by force, fraud or coercion and a Travel Act violation.These charges were filed as the result of an investigation by the Federal Bureau of Investigation.This case has been assigned to and will be prosecuted by Assistant United States Attorney Jill Koster.
The United States Attorney's Office emphasized that an Indictment is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
PLEAS:
Dajon Rowlett, 31, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of distribution of crack cocaine.This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Hudie Scott, 27, of Gary, Indiana, pled guilty before Senior District Judge Rudy Lozano to the felony offense of distribution of crack cocaine.This charge was filed as a result of an investigation by the Federal Bureau of Investigation GRIT Task Force.This case is being prosecuted by Assistant United States Attorney Jennifer Chang-Adiga.
Beaver Bernard Russell, 59, of Benton Harbor, Michigan, pled guilty before Senior District Judge Rudy Lozano to the felony offenses of the bank robbery of each of the following banks:Mutual Bank in South Bend, Indiana, Fifth Third Bank in Munster, Indiana and M&I Bank in Pleasant Prairie, Wisconsin.These charges were filed as a result of an investigation by the Federal Bureau of Investigation.This case is being prosecuted by Assistant United States Attorneys David Nozick and Dean Lanter.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
DISPOSITIONS:
Cedric Payton, 39, of Indianapolis, Indiana, was sentenced by Senior District Judge Rudy Lozano to 37 months of imprisonment and 2 years of supervised release after pleading guilty to the felony offense of possession of a firearm by a convicted felon.Payton has a prior felony conviction for sexual misconduct with a minor and failure to register as a sex offender. This case was a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives HIDTA Task Force.This case was prosecuted by Assistant United States Attorney Nicholas Padilla.
Jeannie Bellar, 55, was sentenced by Senior District Judge Rudy Lozano to 1 day imprisonment, with time considered served, and 1 year of supervised release to include 8 months of home detention after pleading guilty to the felony offense of embezzlement from First Financial Bank.Bellar is also to pay a $4000 fine and she has already paid $17,000 in restitution. This case was a result of an investigation by the United States Secret Service.This case was prosecuted by Assistant United States Attorney Randall Stewart.
Washington Drug Trafficker Sentenced in Montana Federal CourtRead the Press Release
The United States Attorney's Office announced that SYLVIA MARTINEZ, aka SYLVIA LOPEZ, 31, of Kennewick, Washington, was sentenced to a term of 90 months imprisonment, four years supervised release, and a special assessment of $100 during a federal court hearing in Great Falls, Montana, on April 17, 2014, before U.S. District Judge Brian M. Morris.
MARTINEZ was sentenced in connection with her January 22, 2013, guilty plea to conspiracy to possess with the intent to distribute methamphetamine. In an Offer of Proof, Assistant U.S. Attorney Ryan Weldon stated it would have proved that MARTINEZ transported methamphetamine from Washington to Great Falls, Montana. On October 31, 2013, federal agents observed MARTINEZ and others parked at a local hotel. Agents conducted surveillance and watched several members of the conspiracy distribute methamphetamine. After obtaining a federal warrant, authorities searched a hotel and discovered 297.4 grams of pure
The District Court sentenced MARTINEZ to 90 months of imprisonment, with four years of supervised release to follow. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that MARTINEZ will likely serve all of the time imposed by the court. In the federal system, MARTINEZ does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
This case was investigated by the Federal Bureau of Investigation, the United States Probation Office, and local law enforcement agencies.
Virginia Doctor Sentenced for Lying to Grand Jury About Medicare Fraud SchemeRead the Press Release
BOSTON – A Virginia podiatrist was sentenced yesterday for making false declarations to a grand jury about her participation in a Medicare fraud scheme.
U.S. District Court Judge Nathaniel M. Gorton sentenced Ilene Terrell, 65, of Fredericksburg, Va., to five months in prison, five months of home confinement, and two years of supervised release. He also ordered her to pay a $15,000 fine. In January 2014, Terrell pleaded guilty to four counts of making false declarations to a grand jury.
Terrell, a podiatrist, lied to the grand jury about her role in falsifying patient medical records to induce Medicare to pay for claims for Orthofix bone growth stimulator medical devices that did not meet Medicare’s payment guidelines. Bone growth stimulators are externally-worn medical devices that help regenerate bone cells and are used to assist the healing of broken bones. Medicare only pays for a bone growth stimulator, which costs approximately $4,000, if the medical supplier provides records demonstrating that fracture healing has ceased for three or more months.
On numerous occasions, Terrell prescribed a stimulator for a patient where the claim would not have met Medicare’s guidelines. When this occurred, the Orthofix territory manager, Terrell, and an employee at Terrell’s direction often falsified the patient’s medical records, making it appear as though the stimulator was not prescribed until three months had elapsed without healing, when in fact that was not true and Medicare should not have paid the claim. For instance, they deleted references in chart notes that the patient was using the stimulator and was healing, and they created new, fictitious notes at the end of the 90- day period stating that the bone was still broken and that a stimulator would be ordered. Terrell also created fictitious prescriptions and signed Medicare Certificates of Medical Necessity falsely stating that she had ordered the stimulator at the end of the 90-day window, when in fact the patient had received the device months previously. These medical records were altered solely to ensure that Medicare paid Orthofix for bone stimulator claims that did not satisfy the program’s payment rules.
On May 22, 2012, Terrell testified before the grand jury. She was asked several times if she was aware that patient records had been manipulated. Terrell lied, denying that she manipulated patient records or that she was even aware that anyone had done so. Terrell lied about other matters as well, including her communications with an Orthofix representative about the government’s investigation. Terrell discussed the government’s investigation at length with the Orthofix representative and instructed him “you and I have not talked.” She also threatened him, stating, “If you guys take me out you are never going to live to hear the end of it. If I roll on this, I am serious, heads are going to roll, heads are absolutely gonna roll.”
In the grand jury, Terrell was asked if she had recently spoken with the Orthofix representative. Terrell lied, stating that she only spoke with him briefly and that the representative stated that he did not know what the investigation was about.
Subsequent to her testimony, after learning that her practice administrator had provided truthful, damaging testimony to the grand jury, Terrell fired this employee after 23 years of service.
In addition to the Terrell sentence, the Orthofix investigation has to date resulted in a number of felony charges against employees and contractors of Orthofix, including the following:
- On Dec. 14, 2012, Orthofix was convicted of obstruction of a federal audit and paid approximately $42 million in criminal fines and civil payments, and was sentenced to probation for five years;
- On Jan. 22, 2013, Thomas Guerrieri, the former Orthofix Vice President of Sales, was sentenced to eight months in prison and was ordered to pay $50,000 in forfeiture and fines for paying kickbacks to health care professionals;
- On July 19, 2012, Michael Cobb, a physician’s assistant, was sentenced to six months in prison, six months home confinement and ordered to forfeit $10,000 and pay a $3,000 fine for accepting kickbacks from Orthofix;
- On Aug. 9, 2013, Hunter Rigsby, a former Orthofix Territory Manager, was sentenced to eight months in prison and ordered to pay $75,000 in criminal fines and forfeiture for committing Medicare fraud and paying kickbacks;
- On Jan. 31, 2013, Mitchell Salzman, a former Orthofix Regional Manager, was sentenced to three months of home confinement and one year of probation for committing perjury;
- On Jan. 9, 2013, Derrick Field, a former Orthofix Territory Manager, was sentenced to five months of home confinement as part of a two year probation sentence, in addition to paying $44,000 in forfeiture and fines for committing health care fraud;
- On Jan. 23, 2013, Michael McKay, a former Orthofix Territory Manager, was sentenced to three months home confinement, one year probation and paid $13,000 in forfeiture and fines for committing health care fraud;
- On Sept. 28, 2012, Brian Racey, a former Orthofix Territory Manager, was sentenced to one day in prison, six month of home confinement, two years of supervised release, and a $2,500 fine for committing health care fraud; and
- Michael Jenkins, a former Orthofix Territory Manager, has agreed to plead guilty to committing health care fraud.
United States Attorney Carmen M. Ortiz and Philip Coyne, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys David S. Schumacher and Miranda Hooker of Ortiz’s Health Care Fraud Unit.
Two Winter Garden Men Convicted at TrialRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that yesterday a federal jury found Linell Devon Lowe (22) and Latavis Deyonta Mackroy (20) guilty of conspiracy to commit a Hobbs Act robbery and the brandishing of a firearm during the commission of the robbery. Both men face a maximum penalty of 20 years’ imprisonment for the robbery, plus a mandatory minimum, consecutive sentence of 7 years, up to life in prison, on the firearm offense. A sentencing hearing is scheduled for July 28, 2014.
Lowe and Mackroy were indicted on December 11, 2013. A third person, who acted as lookout during the robbery, pleaded guilty on February 24, 2014.
According to the testimony and evidence presented at trial, on May 23, 2013, Lowe and Mackroy, armed with a firearm and a hammer, robbed the Value Pawn and Jewelry located at 2200 E. Semoran Boulevard, in Apopka, Florida. During the course of the robbery, they made death threats and intimidated two employees and a customer. Mackroy repeatedly hit a customer with a hammer, and then stole approximately 100 pieces of gold and diamond jewelry, while Lowe pointed a gun at the manager, and stole the cash from the registers.
This case was investigated by Federal Bureau of Investigation and the Apopka Police Department, with assistance from both the Winter Garden Police and Orlando Police Departments. It is being prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
Two Jackson County Residents Charged with Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn April 8, 2014, Travis J. Sanders, 29, and April M. Elliot, 33, both of Pomona, were charged by superseding indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2009 and December 2013, in Union and Jackson Counties. Elliot made her initial appearance in federal court on April 14, 2014. At an April 15, 2014, hearing, she was released on bond pending a June 16, 2014, jury trial. Sanders is scheduled to make his initial appearance in federal court on April 24, 2014.
The methamphetamine offense carries a penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Jackson County Sheriff’s Office, Union County Sheriff’s Office, Murphysboro Police Department and Drug Enforcement Administration. The Illinois State Police Methamphetamine Response Team and Union County State’s Attorney’s Office assisted in the investigation.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Turkish National Extradited from the Republic of Georgia Pleads Guilty to Computer Hacking and Credit Card Fraud ConspiracyRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Alper Erdogan (35, a Turkish citizen residing in Baku, Azerbaijan) today pleaded guilty to conspiracy to commit computer hacking, conspiracy to commit credit card fraud, and two counts of aggravated identity theft. Erdogan faces a maximum penalty of 14 years in federal prison. A sentencing date has not yet been scheduled.
Erdogan was originally indicted in September 2012.
According to the plea agreement, in September 2010, the United States Secret Service (USSS) learned that the computer servers of a hotel in San Diego, California had been hacked and that malicious software had stored credit card magnetic track data, which was then remotely accessed and eventually used at retail stores throughout the United States. In a series of prosecutions related to United States v. Chad Warner, et al., the government prosecuted and secured convictions against 17 individuals who used the stolen credit card numbers in the United States.
As the investigation progressed, agents learned that the conspirators in the United States purchased the stolen credit card account numbers from Erdogan, who was then located in Azerbaijan, and made in excess of $1.2 million in fraudulent credit card charges in about nine months, between June 2010 and the execution of federal search warrants in March 2011. During the course of the charged conspiracies, Erdogan provided individuals throughout the United States with thousands of stolen and hacked credit card numbers and the personal information of Americans. In doing so, Erdogan entered into a conspiracy with hackers located in Eastern Europe and Central Asia. Erdogan perpetrated his offenses and communicated with his conspirators solely over the Internet, acting as a broker and providing the stolen and hacked information to individuals in the United States for the purpose of allowing them to commit fraud.
In February 2014, Erdogan was extradited from the Republic of Georgia, where he had travelled from Azerbaijan, to the United States to face the charges alleged in this case.
Dennis Ramos Martinez, Special Agent in Charge of the United States Secret Service, Orlando Field Office stated, “The Secret Service is committed to pursuing cybercrime cases. There is no doubt that our economic vitality and national security depend on cyber security. We are committed to these interests and will pursue cyber criminals regardless of where they may be physically located on the globe.”
This case was investigated by the United States Secret Service. The Justice Department’s Office of International Affairs provided assistance with the extradition. This case is being prosecuted by Assistant United States Attorney Daniel C. Irick.
Tulsa Man Pleads Guilty to Possessing Child PornographyRead the Press Release
TULSA, Okla. — A Tulsa man pleaded guilty in federal court Thursday for possession of child pornography, announced United States Attorney Danny C. Williams Sr. for the Northern District of Oklahoma.
Mark McDonough, 33, of Tulsa, pleaded guilty before U.S. District Court Chief Judge Gregory K. Frizzell to one count of possession and attempted possession of child pornography.
According to documents filed in the case, on November 20, 2013, McDonough possessed child pornography depicting minors who had not obtained 12 years of age engaging in sexually explicit conduct. He admitted to downloading the images from the internet.
The statutory maximum penalty is 20 years imprisonment, and a fine of $250,000. Sentencing has been set for July 17, 2014.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Jeffrey Gallant on behalf of the United States.
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. For more information about Project Safe Childhood and Internet safety education, visit www.usdoj.gov/psc.
Three Randolph County Residents Charged with Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn April 8, 2014, Allen W. Clover, Jr., 40, Carmen J. Clover, 40, and Jimmy L. Richeson, 51, all of Tilden, were charged by indictment with conspiracy to manufacture methamphetamine, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today.
The offense occurred between 2012 and March 2014, in Jackson, Randolph, and St. Clair Counties. Carmen Clover made her initial appearance in federal court on April 14, 2014. At her April 15, 2014, detention hearing, she was ordered held without bond pending a June 16, 2014, jury trial. Allen Clover had previously appeared in federal court and is on bond pending jury trial. Richeson has not yet made his initial appearance.
The methamphetamine offense carries a penalty of up to 20 years’ imprisonment, to be followed by 3 years’ supervised release, and a fine of $1,000,000.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Tilden Police Department, and Drug Enforcement Administration.
The case is assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Three Individuals Charged in Federal Court with Armed Bank RobberyRead the Press Release
United States Attorney James L. Santelle announced today that a federal criminal complaint was issued charging three individuals with the April 17, 2014 armed robbery of the BMO Harris Bank located on Appleton Avenue in Menomonee Falls, Wisconsin.
The criminal complaint charges Zachary M. Ellis (21), Christopher R. Jacko (21), and Lindsey E. Fischer (21), with one count of armed bank robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d), and one count of brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c).
According to the criminal complaint, Ms. Fischer was a bank employee. The complaint alleges that after robbing the bank at gunpoint, Mr. Ellis and Mr. Jacko fled in a white vehicle. Mr. Ellis and Mr. Jacko ultimately abandoned the vehicle following a chase by Menomonee Falls police. Law enforcement later located and arrested Mr. Ellis and Mr. Jacko.
Each of the defendants appeared in federal court this afternoon, and all three were detained pending trial.
The case is being investigated the Menomonee Falls Police Department and the Milwaukee Division of the Federal Bureau of Investigation (FBI). This case is being prosecuted by Assistant U.S. Attorney Margaret Honrath.
The public is cautioned that a criminal complaint is merely a formal method of charging an individual and does not constitute inference of his or her guilt. An individual is presumed innocent until such time, if ever, that the government establishes his or her guilt beyond a reasonable doubt.
Three Broward Residents Charged with Preparing False Tax Returns for Their ClientsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Steven Tidas, of Tamarac, Stenor Prosper, of Parkland, and Sylvanie Junior Pierre, of Lauderdale Lakes, were charged in a thirty-five count indictment for unlawfully enriching themselves by filing materially false and fraudulent tax returns for their clients for which they obtained fees. All of the defendants were charged with one count of conspiracy, in violation of Title 18, United States Code, Section 371, and numerous counts of assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2). All of the defendants had their initial appearances this morning before U.S. Magistrate Judge Barry S. Seltzer.
The defendants served as officers of Value Tax Services, Inc. and/or Value Financial Group, Inc., both of Sunrise. The defendants prepared tax returns for individuals which falsely claimed tax credits for being a first time home buyer, when the defendants knew the taxpayers had not purchased a home and did not qualify for the credit. The defendants also prepared tax returns for individuals which falsely claimed that the taxpayers had household help income, or inflated household help income, and they falsely inflated other income or deductions in order to increase the amount of the taxpayers’ refunds.
If convicted, the defendants each face a maximum of five years in prison for the conspiracy charge, and a maximum of three years in prison for each count of preparing false tax returns.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
An indictment is only an accusation and the defendants are presumed innocent 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.
Terry Friend Recognized for Service to Crime VictimsRead the Press Release
United States Attorney Brendan V. Johnson announced that Terry Friend, CNM, MSN, from Kyle, South Dakota, was awarded a Department of Justice Certificate of Appreciation as part of National Crime Victims’ Rights Week 2014.
Johnson’s staff presented the award to Friend in recognition of National Crime Victims’ Rights Week. The presentation took place at the Four Directions Clinic in Kyle on April 11, 2014.
Friend was recognized for her outstanding dedication, service, and contributions on behalf of crime victims. Originally from Massachusetts, Friend is currently a full time midwife at the Kyle Health Center’s Four Directions Clinic, where she manages two Domestic Violence Prevention Initiatives.
Terry Friend has lived on the Pine Ridge Reservation since 1981. She has provided an innovative approach to healthcare, as evidenced by many of the programs she has pioneered as a midwife for Indian Health Services (IHS). For instance, in 2001, she developed the first sexual assault program on the reservation, which now includes a community setting separate from the emergency room and hospital in Kyle.
One of her most notable accomplishments to date includes the opening of the Four Directions Clinic in Kyle in January of 2014. It provides a clinic based setting and comfortable environment to those needing care after a sexual assault or abuse, as well as offering other services. The 2,400 square feet clinic is located on the Kyle Health Facility Campus. Two clinical nurses work with Friend to provide sexual assault forensic exams, women’s health exams, prenatal care, sexually transmitted disease and HIV screening and treatment, family planning, and community education. The high-tech clinic has three exam rooms, a forensic interview room, reception desk, two staff offices, and a conference room.
“Terry Friend has made remarkable strides in providing quality, compassionate care to women and children on the Pine Ridge Reservation who have been victims of sexual abuse and violence,” said Johnson. “We are very fortunate to have someone of Terry’s caliber who is so committed to helping people on the reservation and who works diligently to ensure their healthcare needs are met.”
Friend has received several awards over the years which include Yale’s Distinguished Alumni Award in 2002 for improvement of healthcare to native women, the National IHS Director’s Award in 2005, and the IHS Prevention Award in 2009 for building partnerships aimed at health promotion and disease prevention.
Six Individuals Involved in A Prison Tax Refund Scheme Indicted and ArrestedRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging six individuals with conspiracy to defraud the government. Laura Wright (70, Lecanto), Tiffani Manning (30, Jacksonville), Silvester Bowens (48, Jacksonville), Christopher Wyant (38, Morristown, TN), and Tabatha Dubois (33, Morristown, TN) were all arrested on April 15, 2014. Chad R. Heins was arrested this morning. Heins, Manning, Bowens and Dubois also face charges of theft of public money and aiding and abetting the theft of public money. If convicted of the conspiracy charge, each faces a maximum penalty of 10 years in federal prison. The theft of public money counts each carry a maximum penalty of 10 years’ imprisonment, as well.
According to the indictment, the above named individuals agreed, combined and conspired with each other and inmates Ronald Rodgers, a/k/a “Ronnie” and “Arthur Pellerin,” John Wright and others to defraud the Internal Revenue Service by obtaining and attempting to obtain the payment of false federal income tax refunds. The amounts claimed on the federal income tax returns included expected income tax refunds ranging between $5,762 and $24,794. It was part of the conspiracy that inmate Ronald Rodgers and other persons would cause the IRS to send fraudulently obtained income tax refunds via direct deposit, into several accounts opened and controlled by some of the conspirators, including Heins, Manning, Bowens and Dubois. The intended losses totaled approximately $6.8 million.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
The case was investigated by The Internal Revenue Service - Criminal Investigation and the Florida Department of Corrections. Assistant United States Attorney Kelly S. Karase is handling the prosecution of this case.
Click HERE for indictment.
School Custodian Sentenced to Five Years in Prison for Possession and Distribution of Child PornographyRead the Press Release
EUGENE, Ore. – On April 17, 2014, Cecilio Galan, 45, of Metolius, Oregon, was sentenced today to 63 months in prison and 5 years of supervised released for possession and distribution of child pornography.
Defendant possessed child pornography he located on the internet. He then made that pornography available to others on a file sharing site in the hopes that he could obtain additional child pornography himself. Defendant carried on his possession and distribution activities while serving as a custodian in a local school and after having served as a reserve police office and a bus driver. The investigation did not reveal any evidence that Galan had any inappropriate contact with the students at the school where he worked.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Jefferson County Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Amy Potter.
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."
Riverview Man Pleads Guilty to Conspiracy to Commit Bank/Mail Fraud Relating to Real Estate MortgagesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Alejandro Matos (43, Riverview) today pleaded guilty to conspiracy to commit wire, mail, and bank fraud. Matos faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Matos worked as a mortgage broker and loan processor for a company in Tampa, Florida. In that capacity, he assisted in the preparation of loan documents and documentation to various mortgage lenders on behalf of clients. In October 2007, Matos assisted two clients in purchasing a residence at 2304 West Flora Street, Tampa, Florida. Matos assisted in the preparation and submission of a Uniform Residential Loan Application in aid of that purchase, which contained numerous false and fraudulent representations related to the purchaser’s place of employment and income. Matos submitted those statements to HSBC Mortgage Corporation in connection with that mortgage application.
In November, 2007, a Uniform Residential Loan Application was submitted to Washington Mutual Bank, N.A. (“WAMU) in support of an application by the same client, who was seeking to obtain financing for the purchase of a condominium unit at the Arbors, in Carrollwood. In support of that application, a number of false and fraudulent representations were made to the lender. At or about the same time, Matos also aided in the submission of other false or fraudulent documents to WAMU, in support of an application by another company client to purchase another condominium unit at the Arbors.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Riverdale Marina Re-Developer Arrested on Federal Charges for Allegedly Defrauding the Village of $370,000 in Public FundsRead the Press Release
CHICAGO — A Chicago real estate developer was arrested today on federal charges alleging that he defrauded the south suburban Village of Riverdale of public funds provided for the redevelopment of the now closed-Riverdale Marina. The defendant, JOHN THOMAS, allegedly fraudulently obtained approximately $370,000 for himself from $900,000 in Tax Increment Financing (TIF) payments in 2012 and used the public funds to repay personal loans and debts, legal fees, rent and other personal expenses.
Thomas, 51, of Chicago, was charged with three counts of wire fraud in a federal grand jury indictment that was returned Wednesday and unsealed today after his arrest. He is expected to be arraigned later today in U.S. District Court.
Thomas owned and controlled Nosmo Kings LLC, which had offices at 215 West Ontario St., in Chicago, and at the Riverdale Marina, 13100 South Halsted St., in Riverdale, which consisted of boat docks and a restaurant on 11 acres along the Little Calumet River.
Between February and April 2012, Riverdale paid Thomas’s company $900,000 in TIF funds for three phases of construction and reimbursement based on false supporting documents. Thomas used a portion of the money for legitimate renovations costs while fraudulently using approximately $370,000 for his personal benefit. The indictment seeks forfeiture of at least $370,000.
According to the indictment, Nosmo Kings entered into a TIF agreement with Riverdale in February 2012. Riverdale’s TIF program allowed taxpayer funds to be used to redevelop certain property in the village. Under the agreement, Riverdale agreed to reimburse Nosmo Kings’ expenses up to $1.2 million as long as the total renovation costs equaled or exceeded approximately $5.25 million. The TIF funds were to be disbursed in four phases, each capped at $300,000, after Nosmo Kings paid for and completed each phase of construction. To obtain TIF funds, Thomas was required to submit certain documents identifying completed construction expenses, including invoices from and checks paid to vendors.
In early 2012, Thomas allegedly created and submitted fake invoices for non-existent companies and for companies that never performed work at the marina in order to fraudulently obtain reimbursement from the village. The indictment alleges he submitted numerous false documents supporting reimbursement for expenses that he had not incurred. These included $132,000 and $8,815 in payments to contractors for construction work; $22,994 for an insurance policy that was later cancelled for non-payment; and $56,000 and $67,000 for construction supplies using the same supporting invoices and receipts to double-bill the village.
The indictment alleges that Thomas claimed $25,750 for construction supplies from a company that was actually a currency exchange he owed money, and he submitted other fraudulent documents to obtain payment of tens of thousands of dollars to law firms and an individual attorney for personal legal fees for himself and one of his employees. Thomas used other TIF funds to pay his apartment rent, the charges allege.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The arrest and indictment were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The government is being represented by Assistant U.S. Attorney Sunil Harjani.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Indictment
Radio Equipment Seized from Three Illegal Radio Stations in Greater BostonRead the Press Release
BOSTON – Warrants were recently unsealed in U.S. District Court detailing the seizure of radio transmission equipment used by three pirate radio stations: 100.1 FM, broadcasting from Everett, Mattapan, and Brockton, with a studio in Dorchester; Touch 106.1 FM, broadcasting from Boston; and 88.7 FM, broadcasting from Brockton.
It is alleged that all three stations were operating without a license from the Federal Communications Commission (FCC). Separate civil actions were brought seeking forfeiture of the equipment because it was allegedly used in violation of federal law.According to affidavits filed with the court, the FCC issued multiple warnings to the illegal operators at the above addresses, but the radio stations continued to broadcast. The forfeiture actions were brought after complaints were received, including a complaint from a licensed broadcaster about interference with its radio signal.
“As prosecutors we work in conjunction with the FCC’s Enforcement Bureau to identify violators of federal communications law,” said United States Attorney Carmen M. Ortiz. “It is a public safety hazard for illegal radio stations to broadcast, potentially interfering with critical radio communications.
“Like any member of the community, the operators of these illegal stations could have applied for free low power radio licenses and operated their stations in compliance with the law. When they choose to operate illegally, and continue those operations after being warned multiple times, action must be taken,” added U.S. Attorney Ortiz.
Since 2011 the U.S. Attorney’s Office has filed eight forfeiture actions against illegal radio stations in the greater Boston area, effectively shutting down all eight stations.
The Communications Act of 1934 prohibits the operation of radio broadcasting equipment above certain low-intensity thresholds without a license issued by the FCC. The Act authorizes the seizure and forfeiture of any electronic or radio frequency equipment used to broadcast without an FCC license. The number of available radio frequencies is limited, and unlicensed broadcasting can interfere with the broadcasting of legitimate licensed radio stations, potentially causing chaos in the radio spectrum.
Said Acting FCC Enforcement Bureau Chief Travis LeBlanc, “Like driving a car, radio broadcasting requires a license, permit, or other government authorization. This week’s seizures by FCC agents and U.S. Marshals ensure that everyone who uses the public airwaves follows the same rules.”
Federal officials seized the equipment on April 16 and 17, 2014. Officials seized equipment operated by the radio station using frequency 100.1 MHz at the station’s last known addresses on Walnut Street in Everett, Outlook Road in Mattapan, N. Manchester Street in Brockton, and Gallivan Boulevard in Dorchester. Equipment operated by the radio station using frequency 106.1 MHz was seized at the station’s last known addresses on Cheney Street and Blue Hill Avenue in Boston. Lastly, equipment operated by the radio station using frequency 88.7 MHz was seized at the station’s last known address on Crescent Street in Brockton.
U.S. Attorney Ortiz and Chief LeBlanc made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Christine Wichers of Ortiz’s Civil Division. The seizures were conducted by the United States Marshals Service and the FCC.
President and Vice-President of Luxury Tax, Inc. Sentenced for Tax Refund Fraud Utilizing Stolen Personal Identifying Information of Identity Theft VictimsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Scott J. Israel, Sheriff, Broward Sheriff’s Office (BSO), announce today that co-defendants Camilla Gonzalez, 29, and Patricia Alcime, 29, both of Lauderhill, were sentenced today before U.S. District Judge William P. Dimitrouleas, in connection with their previous convictions relating to a tax refund scheme that used stolen social security and other personal identifying information to file false online tax returns that resulted in the issuance of hundreds of fraudulent tax refunds by the IRS totaling in excess of $1.5 million.
At today’s hearing, Judge Dimitrouleas sentenced Camilla Gonzalez to 102 months in prison to be followed by three years of supervised release and sentenced Patricia Alcime to 94 months in prison to be followed by three years of supervised release. Additionally, they were each ordered to pay $1.8 million in restitution to the IRS and were ordered to forfeit $511,801.28 in fraudulently obtained U.S. currency that had been frozen by SunTrust Bank and seized by the IRS.
Previously, on January 29, 2014, Gonzalez was convicted of one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286, two counts of theft of public money, in violation of Title 18, United States Code, Section 641, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Co-defendant Alcime was convicted of one count of conspiracy to commit false claims, in violation of Title 18, United States Code, Section 286, three counts of theft of public money, in violation of Title 18, United States Code, Section 641, and three counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to testimony and evidence presented at trial, as well as from court documents, between January 15, 2011 and continuing until on or about October 20, 2011, Gonzalez and Alcime conspired to defraud the United States by obtaining and aiding to obtain the payment or allowance of false, fictitious, and fraudulent claims. It was the object of the conspiracy that the defendants unjustly enrich themselves, by obtaining and utilizing stolen means of identification to file false and fraudulent federal income tax returns with the IRS claiming tax refunds to which they were not entitled.
In the instant case, Camilla Gonzalez and Patricia Alcime obtained personal identifying information of numerous identity theft victims, including their names, dates of birth, and Social Security numbers. The defendants utilized this information to electronically file false and fraudulent federal income tax returns without the knowledge or authorization of the identity theft victims, utilizing the Electronic Filing Identification Number (EFIN) assigned to Luxury Tax Inc. and their individually assigned Preparer Tax Identification Numbers (PTIN), claiming refunds to which they were not entitled from the IRS. Camilla Gonzalez and Patricia Alcime thereafter directed the IRS that the fraudulently claimed refunds be direct deposited into Luxury Tax, Inc. bank accounts at JP Morgan Chase Bank and SunTrust Bank or onto pre-paid reloadable debit card accounts.
Once the bank accounts or pre-paid reloadable debit cards had been funded by the Department of the Treasury, Gonzalez and Alcime would thereafter withdraw the funds by making withdrawals at local automated teller machines, transfers to other accounts under their control or to merchants directly, or would utilize the debit cards associated with the Luxury Tax Inc. bank accounts to make everyday purchases, including point of sale transactions at various local businesses and merchants.
In total, Camilla Gonzalez filed 621 fraudulent 2010 tax returns on behalf of unsuspecting identity theft victims, claiming $1,738,639.00 in fraudulent refunds. The IRS subsequently paid out $1,858,386.00 in refunds directly to accounts under her control. Patricia Alcime filed at least 92 fraudulent 2010 tax returns on behalf of unsuspecting identity theft victims, claiming $222,652.00 in fraudulent refunds. The IRS subsequently paid out $203,831.00 in refunds directly to accounts under the control of both Camilla Gonzalez and Patricia Alcime.
Mr. Ferrer commended the investigative efforts of the IRS-CI and BSO. This case is being handled by Assistant U.S. Attorney Marc Anton.
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.
Pill Mill Doctor Found GuiltyRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that following a 14-day trial, a federal jury yesterday found Ronald John Heromin (58, Brandon) guilty of conspiracy to distribute and dispense Oxycodone and Alprazolam, not for legitimate medical purposes, and not in the usual course of professional practice. Heromin faces a maximum penalty of 20 years in federal prison, the forfeiture of his Florida Medical License, his DEA Registration and money seized during the investigation. His sentencing hearing is scheduled for July 24, 2014.
Heromin was indicted on October 26, 2011.
According to evidence presented at trial, from late 2009 through October of 2011, Heromin was the prescribing physician at several pain management clinics in the Tampa Bay and Miami areas, including Gulfshore Pain Management on Habana Avenue, the Tampa Bay Medical Center on Himes Avenue, and the Tampa Bay Wellness Centre on Martin Luther King Boulevard, in Tampa; the Hope for Life Wellness Center in Miami, and the St. Mary’s Medical Institute in Hialeah, Florida. During that time, Heromin issued thousands of prescriptions for very large doses of Oxycontin, Oxycodone and Alprazolam, to drug addicts and members of doctor shopping organizations who often traveled hundreds of miles from as far away as Ohio, Kentucky and Tennessee to obtain the prescriptions. Over 500,000 Oxycodone pills and 230,000 Alprazolam pills, prescribed by Heromin during that time, were filled at a single pharmacy (“VIP Pharmacy”) on Martin Luther King Boulevard, in Tampa. Owners and operators of the Tampa Bay Wellness Centre and the VIP Pharmacy have previously been convicted of federal conspiracy and money laundering charges.
This case was investigated by a Joint Task Force, including the Drug Enforcement Administration, the Tampa Police Department, the Pasco County Sheriff's Office, the Pinellas County Sheriff's Office, the Manatee County Sheriff’s Office, the Lakeland Police Department, and the Franklin County Sherriff’s Office in Columbus, Ohio. It was prosecuted by Assistant United States Attorney Kathy J.M. Peluso.
Orlando Man Pleads Guilty to Charges in Connection with Mailing Firearms to the U.S. Virgin IslandsRead the Press Release
Orlando, FL – United States Attorney A. Lee Bentley, III announces that Quem Stephen Clive Dixon (24, Orlando) today pleaded guilty to three counts of making a false statement to a firearms dealer, three counts of transferring a firearm across state lines, and one count of selling a firearm to a convicted felon. Dixon faces a maximum penalty of 10 years’ imprisonment on each false statement count, 5 years in prison on each count of transferring a firearm to a nonresident, and 10 years’ imprisonment on the single count of selling a firearm to a convicted felon.
Dixon was indicted on February 5, 2014.
According to court documents, Dixon purchased firearms from Federal Firearm Licensees (FFLs) between the dates of October 18, 2012 and November 1, 2013. During these purchases, Dixon lied on multiple Bureau of Alcohol, Tobacco, Firearms and Explosives forms (ATF Form 4473) so that he could obtain firearms for a convicted felon residing in the U.S. Virgin Islands, whom had recently been released from jail following a manslaughter conviction. Dixon mailed these firearms from Orlando to the U.S. Virgin Islands.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives in the U.S. Virgin Islands and Orlando, the U.S. Customs and Border Patrol, Virgin Islands Police Department and Orlando Police Department. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.Omaha Woman Sentenced for Making a False Statement to the Social Security Administration and Aggravated Identity TheftRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 17, 2014, United States District Court Judge Joseph F. Bataillon, sentenced Tina Angela Davis-Smith, age 44, to 12 months and 1 day imprisonment following her conviction for making a False Statement to the Social Security Administration, and 24 months imprisonment to be served consecutively for Aggravated Identity Theft. Davis-Smith was also ordered to serve a three year term of supervised release after serving her prison term.
An investigation conducted by the Social Security Administration, Office of Inspector General, determined that in 2011 Davis-Smith made a false statement on a Social Security Administration Work Activity Report when she failed to report her previous employment. The Work Activity Report was relied upon by the Social Security Administration to determine Davis-Smith’s continued receipt of Social Security Administration Benefits. The investigation also determined that in 2010 Davis-Smith used the identification of another person for purposes of obtaining employment.
This case was the result of an investigation conducted by the Social Security Administration, Office of Inspector General.
Omaha Man Sentenced for Assaulting a Federal EmployeeRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 18, 2014, Senior United States District Court Judge Richard G. Kopf, sentenced Tommy Vasser, age 50, to probation for a term of 2 years under special conditions, following his conviction for Assaulting, Intimidating, or Interfering with a Federal Employee. Vasser was also ordered to pay a $25 special assessment. An investigation conducted by the Veterans Affairs Police Department determined that on April 13, 2013, Vasser was at the Veterans Affairs Medical Center in Omaha, Nebraska, when he assaulted a Veterans Affairs Medical Center nurse.
This case was investigated by the Veterans Affairs Police Department.
Oakland Resident Pleads Guilty in Identity Theft SchemeRead the Press Release
OAKLAND, Calif. – Jonathan Davis pleaded guilty today to wire fraud, announced United States Attorney Melinda Haag and IRS-CI Special Agent in Charge José M. Martinez.
According to the plea agreement, Davis devised a scheme to obtain money by preparing and filing false federal income tax returns in the names of other people. To carry out this scheme, Davis had friends obtain names, birthdates, and social security numbers of people who did not authorize use that information on the filed tax returns. Davis opened bank accounts in the names of these victims and linked those accounts to debit cards for the purpose of receiving the fraudulent tax refunds. Davis directed the banks to mail the debit cards to himself or his friends and paid his friends up to $200 for addresses that he could use for bank accounts, debit cards, and tax returns.
During 2011 and 2012, Davis caused 111 materially false federal income tax returns to be electronically filed. On those 111 returns, Davis falsely claimed refunds of $484,546, and successfully obtained $178,426 from the IRS.
Davis, 32, of Oakland, was indicted on August 22, 2013. He was charged with 11 counts of wire fraud and 11 counts of aggravated identity theft. He pleaded guilty to one count of wire fraud.
Davis’s sentencing hearing is scheduled for Aug. 24, 2014, before the Honorable Jon S. Tigar, U.S. District Judge, in San Francisco. The maximum statutory penalty for each count of wire fraud, in violation of Title 18, U.S.C § 1343, is 30 years in prison and a fine of $1,000,000. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the IRS, Criminal Investigation.
Murphysboro Man Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn April 17, 2014, Jaben S. Graff, 36, of Murphysboro, Illinois, was sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Graff, who had previously pled guilty to the methamphetamine offense, was sentenced to 97 months in federal prison, to be followed by 4 years of supervised release, and fined $300. The offense occurred between March 2011 and March 2013 in Jackson County. Evidence at the plea and sentencing hearings established that Graff was involved with others in the manufacture of methamphetamine. At sentencing, the district court found that Graff was responsible for obtaining over 76 grams of pseudoephedrine to be used to manufacture methamphetamine. Graff received an enhanced sentence because the district judge found that Graff created a substantial risk of death or serious bodily injury to others when he fled from police on February 13, 2013.
The investigation was conducted by the Jackson County Sheriff’s Office, Murphysboro Police Department, and Drug Enforcement Administration.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Missoula Resident Amber Tyler Sentenced for Theft of Government MoneyRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on April 17, 2014, before U.S. District Judge Dana Christensen, AMBER TYLER, age 31, was sentenced to a term of five years' probation. She was also ordered to pay $23,103 in restitution to the Missoula Housing Authority.
In a sentencing memorandum filed by Assistant U.S. Attorney Chad Spraker, the government described Tyler's conduct as the following:
From April 2006 to January 2012, the defendant, Amber Tyler, repeatedly lied to the Missoula Housing Authority as to whether Kenneth Weber, the father of one of her children, was living with her. Due to Tyler's false statements, the Missoula Housing Authority paid over $23,000 in U.S. Department of Housing and Urban Development (HUD) section 8 housing benefits to which the defendant was not entitled.
Tyler entered the Section 8 program in April 2004. Kenneth Weber began living with her in Missoula in April 2006. Weber, on probation at the time, stated to his probation officer on April 4, 2006, that he was moving in with his girlfriend, Amber. The same day Tyler signed an annual recertification making no indication that Weber was living with her.
Weber's monthly probation reports from April 2006 to September 2011 list the same residence as the defendant's address. In each year from 2006 to 2011 Tyler signed certification forms omitting any mention of Weber's presence or his financial resources. The only exception is a February 2009 "Recertification for Move," where Tyler lists Weber as a source of income but lists him as having a different address. In March 2009, Tyler moved to her current address in Missoula. Weber's probation reports also reflect the move.
On July 28, 2011, Missoula Housing Authority Program Specialist John Ellison wrote Tyler a letter stating that the authority received information that Weber was living in her household. The letter instructed Tyler to add him to the household. It further stated that the authority would use his income to calculate Tyler's rent. Missoula Housing Authority case notes state than on August 4, 2011, "Tenant" replied that "Kenneth Weber does not live there. Visits his child and helps but has his own place."
On January 5, 2012, T.J. Hanes, an agent with Housing and Urban Development's Office of Inspector General and Weber's probation officer, Sandra Fairbank, interviewed Tyler and Weber at their residence. Tyler admitted that Weber had lived with her since 2006. Tyler stated that she did not list Weber as a household member because she believed he would not be allowed to live with her. Tyler also stated that she knew she was required to report all of Weber's income to the housing authority.
Missoula Man Sentenced to Prison for Possession of MethamphetamineRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula on April 17, 2014, before U.S. District Judge Dana L. Christensen, VICTOR ANTHONY SCHWARTZ, of Missoula, was sentenced to a term of 120 months' imprisonment and 5 years supervised release.
Schwartz was sentenced in connection with his January 2014, guilty plea to possession with intent to distribute methamphetamine. In an Offer of Proof filed by Assistant U.S. Attorney Tara Elliott, the government stated that in September 2013, Agents from the DEA received information from Russell County Drug Task Force (RCDTF) Detectives regarding methamphetamine trafficking activities of the defendant. According to the Detectives, an RCDTF Confidential Source (CS) provided information that the CS had purchased
Schwartz and had been present with Schwartz during five meth transactions that had totaled approximately six ounces. Schwartz had informed the CS that he receives large quantities of meth from Mexico and always has it available for sale. Beginning around September 2013, the CS was in contact with Schwartz and negotiated a three ounce meth transaction with Schwartz via telephone calls and text messages.
On September 12, 2013, law enforcement executed a state search warrant on Schwartz's residence in Missoula, Montana. During a search of the residence, a plastic baggie containing more than 50 grams of actual methamphetamine was recovered.
The term pure methamphetamine refers to the purity contained in the transacted amount which is usually "cut" with inert ingredients that make the actual product less pure but more profitable as drugs are generally sold based on quantity not quality.
Mission Man Charged with First Degree Burglary and AssaultRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary, Assault with a Dangerous Weapon, and Assault Resulting in Serious Bodily Injury.
Waylon Black Lance, Jr., age 24, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 16, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 25 years in custody and/or a $250,000 fine, 5 years of supervised release, and up to $700 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about July 2, 2013, at Soldier Creek, Black Lance and other defendants unlawfully entered and remained in two residences, and assaulted a victim in one of the residences with a metal object which resulted in serious bodily injury.
The charge is merely an accusation and Black Lance is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Marie H. Ruettgers is prosecuting the case.
Black Lance was remanded to the custody of the U.S. Marshals Service pending trial which has been set for June 3, 2014.
Mission Man Charged with Assault Resulting in Serious Bodily Injury and Assault by Strangulation and SuffocationRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault Resulting In Serious Bodily Injury and Assault By Strangulation And Suffocation.
Jacob Lee, age 30, was indicted on March 11, 2014. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 15, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 8, 2014, Lee assaulted the victim by strangling and suffocating her. The assault resulted in serious bodily injury.
The charges are merely accusations and Lee is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Tim Maher is prosecuting the case.
Lee was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Minnesota Woman Sentenced for BLM Mining Claim SchemeRead the Press Release
The United States Attorney's Office announced that on April 16, 2014, KIMBERLY ONUMA, of Minneapolis, Minnesota, was sentenced to a term of 18 months' probation by U.S. District Judge Donald W. Molloy, for repeatedly making false statements to the Bureau of Land Management (BLM) over a two year period.
Onuma was sentenced in connection with her January 2014, guilty plea to false writings or statements. Assistant U.S. Attorney Leif Johnson advised the court that Onuma acquired, located, and sold unpatented mining claims on federal land. The claims were recorded with the Bureau of Land Management (BLM) in Montana, Oregon, and California. The BLM acts as a repository of ownership information about mining claims on federal land (including lands managed by other agencies like the U.S. Forest Service).
Between 2008 and 2010, Onuma filed 39 unpatented mining claims on federal land in Montana. In order to maintain the exclusive right to mine on any particular unpatented mining claim, the filer must pay an annual maintenance fee of $140. The BLM will waive that fee for small miners who own fewer than 10 claims.
In August of 2010, Onuma filed seven separate Maintenance Fee Waiver Certifications with the BLM in the Montana State Office. Onuma signed the fee waiver requests as agent for various mining companies that held the 10 or fewer listed mining claims. Each such form contained a notice of potential liability under 18 U.S.C. § 1001 for the filing of false information.
Upon review of the fee waiver requests, BLM informed Onuma's various mining companies that the fee waiver is only available to small miners with fewer than 10 claims, and that related companies and persons are not eligible. BLM requested additional information, including powers of attorney and other documents, to establish that Onuma was legitimately acting as the agent for the unrelated owners of the 39 claims.
Onuma responded on behalf of the companies stating that, aside from owning one of the companies, she was acting as agent for all of the remaining companies holding the various mining claims. To support those assertions, Onuma filed Limited Powers of Attorney (LPOA) from the various mining companies. Each such document purported to contain the notarized signature of the owner of one of the mining companies together with an attached list of mining claims (10 or fewer) that the mining company owned.
During the review process, the BLM heard from one of the purported mining company owners, Judith Scrase, who stated that she did not own the mining company or the claims listed. Further, she stated that she did not sign the power of attorney, and it was forged in her name.
BLM rejected the fee waiver requests on the ground that Onuma owned more than 10 mining claims. In some of the cases, Onuma appealed and reiterated that she did not own more than 10 claims and that she was acting as an agent for various owners who signed powers of attorney allowing her to act as agent. BLM again rejected the fee waivers on the same ground and on the additional ground that all of the claims appeared to be controlled by Onuma because she submitted all of the paperwork, she appeared as "incorporator" on all of the corporate documents for the various "unrelated" companies, and she did not include any information on the various owners who signed the LPOAs.
At the conclusion of the appeal process for the foregoing claims, Onuma filed an additional 30 claims.
The Department of Interior's Office of Inspector General conducted an investigation and found that, consistent with BLM's suspicions, several of the "owners" who signed the powers of attorney for the fee waiver requests denied any involvement in, or ownership of, the companies listed with their names.
Similar fee waiver requests were filed for mining claims in California and Oregon. Many of the same names appear on the LPOAs.
Mason City Man Convicted of Unlawful Possession of A Firearm by A FelonRead the Press Release
A man who possessed a firearm after having been convicted of a felony offense was convicted by a jury yesterday, after a one-day trial in federal court in Cedar Rapids.
Billy Douglas Thorne, 57, from Mason City, Iowa, was convicted of one count of possession of a firearm by a felon. The verdict was returned on April 17, 2014, following about one hour of jury deliberations.
The evidence at trial showed that on July 24, 2012, Thorne traded his dog for a .22 caliber rifle which he intended to use to shoot his son. Fearing that police would arrive and find the gun in his residence, Thorne had others hide the gun in a Mason City park. After Thorne was arrested on harassment charges, the gun was turned over to the police. Thorne had previously been convicted in 1997 in the State of Florida of five counts of Burglary of a Dwelling and one count of Armed Burglary, all felony offenses.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Thorne remains in custody of the United States Marshal pending sentencing. Thorne faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, $100 in special assessments, and five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Bureau of Alcohol, Tobacco and Firearms, the Ankeny Police Department, and the Mason City Police Department.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 13-CR-3052.
Man Pleads Guilty to Interfering with Flight CrewRead the Press Release
Anchorage, Alaska-U.S. Attorney Karen L. Loeffler announced today that Nobuya Michael Ochinero pleaded guilty to one count of interfering with a flight crew.
On February 10, 2014, Ochinero, 38, was traveling on a flight from Tokyo, Japan to New York when he became intoxicated. When flight attendants refused to serve Ochinero additional alcohol, he became upset and yelled obscenities at the flight crew. He also became combative during the flight, pushing flight attendants, spitting on passengers, and throwing objects. His actions ultimately caused the flight to be diverted to the Ted Stevens Anchorage International Airport.
Assistant United States Attorney Stephanie Courter, who is prosecuting the case, indicated that, as part of his plea, Ochinero agreed to pay restitution to the airline. The law provides for a maximum total sentence of up to twenty years in prison and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offense and the prior criminal history of the defendant.
The Federal Bureau of Investigation and the Anchorage Airport Police Department led the investigation in the case.
Ochinero is scheduled to be sentenced on July 7, 2014 before United States District Court Judge Sharon Gleason.
Lawrence Man Pleads Guilty to Gun PossessionRead the Press Release
BOSTON – A Lawrence man was convicted yesterday for being a previously convicted felon in possession of a firearm.
Germaine M. Rivera, 20, pleaded guilty today to being a previously convicted felon in possession of a firearm. Sentencing is scheduled for July 15, 2014. Rivera faces up to 10 years in prison, three years of supervised release, and a $250,000 fine.
On May 20, 2013, officers responded to a call of suspicious activity on Auburn Street in Methuen and observed two individuals approaching a previously parked white Toyota. One of the individuals, later identified as Rivera, was observed throwing a small black object into the bushes near the Toyota. The officers located a .22 caliber Beretta semi-automatic firearm which was loaded with six rounds of .22 caliber ammunition and had an obliterated serial number. Both the firearm and ammunition were manufactured outside of Massachusetts.
United States Attorney Carmen M. Ortiz; Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Methuen Police Chief Joseph Solomon, made the announcement. The case is being prosecuted by Assistant U.S. Attorneys Kenneth G. Shine and Maxim Grinberg of Ortiz’s Major Crimes Unit.
Lantry Man Convicted of Involuntary ManslaughterRead the Press Release
United States Attorney Brendan V. Johnson announced that Charg Hebb, age 20, of Lantry, South Dakota, appeared before District Judge Roberto A. Lange on April 15, 2014, and pled guilty to an Indictment that charged him with Involuntary Manslaughter.
The maximum penalty upon conviction is 1 year and 1 day of custody, 2 years of supervised release, and $100 to the Federal Crime Victims Fund.
The conviction arose from an incident on October 12, 2012, on County Road 50 near Lantry, on the Cheyenne River Sioux Indian Reservation, when Hebb caused a car crash that killed a young man who was a passenger in his vehicle. Hebb was driving his 2005 Pontiac Bonneville in excess of the speed limit, driving recklessly and on the wrong side of the road, causing a head-on collision with a 2001 Chevrolet Blazer.
The investigation was conducted by the Federal Bureau of Investigation and the Cheyenne River Sioux Tribe Law Enforcement Division. The case is being prosecuted by Assistant U.S. Attorney Mikal Hanson.
A presentence investigation was ordered and a sentencing date was set for July 2, 2014. The defendant was released on bond pending sentencing.
Kenmore Man Pleads Guilty to Gun ChargeRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul announced today that Marlon Johnson, Jr., 25, of Kenmore, N.Y., who was convicted of possession of a firearm by a convicted felon, was sentenced to 48 months in prison by Chief U.S. District Judge William M. Skretny.
Assistant U. S. Attorney Anthony M. Bruce, who handled the case, stated that on December 16, 2011, Buffalo Police responded to a call on Emerson Street. As officers approached the area, the defendant ran from the area and a foot chase ensued. Johnson was taken into custody inside a residence on Glenwood Avenue. Officers searched a garbage tote next to the door of the residence and found a loaded .380 caliber semi-automatic pistol with a defaced serial number. The defendant later admitted that he stole the gun from another individual.
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, the Federal Bureau of Investigation’s Safe Streets Task Force.
Today’s development is the latest in a continuing series of actions aimed at the Bailey Boys Gang allegedly operating in the City of Buffalo. A total of 10 alleged members and associates of the Bailey Boys have been indicted on racketeering charges, which include multiple murders, attempted murders, robberies and narcotics trafficking. Authorities believe that Johnson, the subject of today’s sentencing, in fact was a criminal associate of the Bailey Boys.Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Strong in Great Falls on April 17, 2014 and entering pleas of Not Guilty were:
- CHARLES PATRICK FREETLY, a 29-year-old resident of Missoula, appeared on charges of a felon in possession of firearms. If convicted of the charge contained in the indictment, FREETLY faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation and Missoula Police Department. PACER Case Reference: 14-07
- JAMES HENRY HERNANDEZ, JR., a 47-year-old resident of Renton, Washington, appeared on charges of conspiracy and making and possessing a counterfeited security of an organization. If convicted of the most serious charges contained in the indictment, HERNANDEZ faces 25 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service and Homeland Security Investigations. PACER Case Reference: 14-02
- KELLY LORRAINE WATTS, a/k/a Kelly Lorraine Emge, a 46-year-old resident of Renton, Washington, appeared on charges of conspiracy to possess a counterfeited security of an organization. If convicted of the charge contained in the indictment, WATTS faces 5 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the United States Secret Service and Homeland Security Investigations. PACER Case Reference: 14-01
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hudson Woman Sentenced to Three Years on Drug, Money Laundering and Firearms ChargesRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced Alyssa
Farrington, 21, of Hudson, Maine, was sentenced today in U.S. District Court by Judge John A.
Woodcock, Jr. to three years in prison and three years of supervised release for conspiracy to possess with intent to distribute and to distribute bath salts, money laundering conspiracy, and aiding and abetting a felon’s possession of firearms.According to court records, between mid-2011 and April 4, 2012, Farrington assisted her boyfriend, Ryan Orton, in illegally obtaining and distributing six kilograms of methylone, over two kilograms of methylenedioxypyrovalerone (MDPV), two of the most commonly abused
“bath salts,” and other drugs. Orton ordered the substances over the internet from China and had them delivered to associates working with him. He paid for the shipments through wire transfers made by Farrington and other associates. Once Orton obtained the drugs he and Farrington distributed them throughout the Bangor area. On April 4, 2012, Orton and Farrington were arrested and their residence, a storage unit and vehicle searched. Investigators seized, among other things, drugs, firearms, a ballistic vest, night vision goggles, stun guns, and other weapons. Orton was prohibited from possessing firearms because of prior felony drug convictions. Farrington purchased several of the firearms for Orton who, as a felon, was prohibited from purchasing them himself.The investigation was conducted by the Maine Drug Enforcement Agency and U.S.
Immigration and Customs Enforcement’s Homeland Security Investigations.Heroin Dealer Sentenced in Connection with Three Overdose DeathsRead the Press Release
ALEXANDRIA, Va. – Eugene Asomani Williams, also known as “Shine,” 35, of Washington, D.C., was sentenced today to 30 years in prison for conspiring to distribute heroin and possessing a firearm in furtherance of this offense. At least three individuals died in Fairfax County, Va. as a result of heroin distributed by Williams.
Dana J. Boente, United States Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police, made the announcement after Williams was sentenced today by U.S. District Judge Leonie M. Brinkema.
“Williams peddled a dangerous drug and inflicted untold damage to the victims, their families, and our communities,” said U.S. Attorney Boente. “This case exemplifies the cooperative efforts of federal, state and local law enforcement to combat this pernicious crime.”
Williams pleaded guilty on Jan. 22, 2014 to conspiracy to distribute one kilogram or more of cocaine and possession of a firearm during and in furtherance of a drug trafficking crime. In a statement of facts filed with the plea agreement, Williams admitted to distributing more than one kilogram of heroin in Virginia, Maryland and the District of Columbia between 2004 and Sept. 26, 2013. Williams also admitted that Joshua Pearson, 33, of Fairfax County, Va.; Timothy Huffman, 23, an active duty soldier at Fort Belvoir; and Kara Schachinger, 22, of Fairfax County, Va. all died as a result of their use of heroin distributed by the defendant.
“I have heard firsthand from families about the devastation brought by the loss of a loved one in this wave of heroin-related deaths, and about the strain placed on law enforcement and healthcare professionals as they work to respond to it,” said Attorney General Herring. “Education, prevention and treatment will play a major part in dealing with this emerging threat, but I will also ensure that my office is doing all it can to keep these dangerous drugs, and those who distribute them, off the streets.”
“Today’s sentencing of Eugene Williams closes the book on a drug trafficker who was responsible for trafficking heroin that led to the death of three individuals in Fairfax County, VA,” said Special Agent-in-Charge Karl C. Colder of the Drug Enforcement Administration, Washington Division. “Heroin is a drug that destroys lives, and tragically sometimes takes them. This case clearly demonstrates DEA’s commitment, by working with our law enforcement partners, to stop drug traffickers who profit from the harm (in this case deadly harm), they present to our community,” stated Colder.
"Fairfax County is safer today thanks to the robust partnerships between local, state, and federal law enforcement" said Colonel Edwin C. Roessler, Jr., Fairfax County Chief of Police. "Today’s sentencing is proof positive these partnerships work against drug traffickers and others who set up criminal enterprises in our region."
This case was investigated by the DEA’s Washington Field Division and the Fairfax County Police Department. Assistant U.S. Attorneys Michael P. Ben’Ary and Julia Martinez and Virginia Assistant Attorney General and Special Assistant U.S. Attorney Marc J. Birnbaum are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Heroin Dealer Endangering Children Sentenced to More Than 18 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Charlene Edwards Honeywell yesterday sentenced Damion Rashaad Carder (36, Cocoa) to 18 years and 9 months in federal prison for possession with the intent to distribute and distribution of heroin. The court also ordered Carder to abandon any interest he had in firearms and ammunition recovered when he was arrested.
Carder pleaded guilty on December 20, 2013.
According to court documents and statements made during the sentencing hearing, Carder was on supervised release as a result of his 2006 conviction in federal court for possession with the intent to distribute cocaine. Despite being under supervision, Carder sold heroin from his home, which was approximately one block away from the Joe Lee Smith Park and Recreation Center, and has a children’s playground, baseball field, basketball court, gymnasium, and community center on the property. Carder would deal heroin when the Center was open. After thinking that he was going to be arrested, Carder placed two firearms and ammunition in a car with two children, approximately 8 and 10 years old, and told the driver to leave the area. Law enforcement stopped the driver and recovered the firearms shortly before arresting Carder, with more than 200 grams of heroin.
This case was investigated by the Drug Enforcement Administration and Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Vincent A. Citro.
Henderson County, Kentucky, Woman Sentenced to 125 Months in Prison for Bank RobberyRead the Press Release
OWENSBORO, Ky. – A Henderson County, Kentucky woman was sentenced in U.S. District Court this week, by Chief Judge Joseph H. McKinley Jr., to 125 months in prison followed by three years of supervised release for robbing a bank and brandishing a firearm during a crime of violence, announced David J. Hale, United States Attorney for the Western District of Kentucky.
Meiesha R. Sharp, 25, of Henderson, was sentenced after pleading guilty to brandishing a .380 caliber pistol while robbing the Fifth Third Bank located in Henderson of $29,068.95 on June 29, 2012. According to the charges, Sharp put the life of another person in jeopardy by the use of a firearm. In return for the guilty plea, the United States agreed to drop four additional charges in a Superseding Indictment. There was no order of restitution because the stolen money was recovered by the Henderson Police Department. Sharp was ordered to remain in custody. There is no parole from federal prison.
This case was prosecuted by Assistant United States Attorneys Thomas W. Dyke and Sungtae Kang, and was investigated by the Henderson Police Department and the Federal Bureau of Investigation (FBI).
Gregory Man Sentenced for Second Degree BurglaryRead the Press Release
United States Attorney Brendan V. Johnson announced that a Gregory, South Dakota, man convicted of Second Degree Burglary was sentenced on April 15, 2014, by U.S. District Judge Roberto A. Lange.
Roger King, age 46, was sentenced to 37 months of custody, 36 months of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
King was indicted by a federal grand jury on April 12, 2013. He pled guilty on February 10, 2014.
The conviction stems from an incident occurring on June 9, 2012, when King entered a house uninvited, distracted the owner, and stole a series of blank checks which he later cashed at local businesses.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
King was immediately turned over to the custody of the U.S. Marshals Service.
Greenbush Woman Pleads Guilty to Stealing Postal FundsRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Nicole
Dumond, 33, of Greenbush, Maine, pled guilty today in U.S. District Court to stealing postal funds.According to court records, between November 2012 and January 2013, Dumond was employed by the U.S. Postal Service as Postmaster Relief in Greenbush, Maine. Postmaster
Relief performs as a relief or leave replacement during the absence of a postmaster. In that capacity, Dumond stole over $1,000 she received from customers for money orders and postage stamps.Dumond faces up to 10 years in prison and a $250,000 fine, or both. She will be sentenced after completion of a pre-sentence report by the United States Probation Office.
The investigation was conducted by the Office of Inspector General of the United States
Postal Service.Georgia Man Convicted of Tax Fraud and Identity TheftRead the Press Release
ATLANTA – A federal jury found Mauricio Warner guilty of using the identities of thousands of unsuspecting individuals to file federal tax returns claiming over $5 million in bogus refunds.
“This verdict represents yet another conviction in a series of recent cases involving identity thieves who use the personal information of unsuspecting victims to file bogus tax returns and steal millions of dollars from the U.S. Treasury,” said United States Attorney Sally Quillian Yates. “We will continue to do all we can to stop these schemes and protect our citizens identities from theft.”
“Despite all of the notices from the IRS, financial institutions, and even criminal investigators, that his actions were criminal, Mr. Warner continued to steal from the government,” said Veronica Hyman-Pillot, Special Agent in Charge, IRS-Criminal Investigation. “Today, a jury of his peers gave Warner his final notice; ‘guilty’ of committing fraud. IRS-CI is proud to have been a part of bringing justice to Mr. Warner, and to those who are victims of identity theft.”
According to United States Attorney Yates, the charges and other information presented in court: From approximately January 2011 to April 2012, Warner filed over 5,000 false tax returns using the names and Social Security numbers of unsuspecting victims. Victims were told they could submit an application for an “Obama stimulus payment” or “Free Government Money” by providing their names and Social Security numbers. In addition to word-of-mouth marketing, Warner used toll-free telephone numbers to collect victims’ personal identifying information. He then used the victims’ names and Social Security numbers to claim millions of dollars in fraudulent refunds. On the returns, Warner claimed false income amounts and student credits to generate the bogus tax refunds, and directed the IRS to pay the refund amounts to bank accounts he controlled. The victims did not know tax returns were being filed in their names.
The United States has seized seven bank accounts controlled by Warner that contain $4,185,455.31 in funds derived from or involved in this scheme.
Warner was convicted on 16 counts of wire fraud, 16 counts of aggravated identity theft, 16 counts of filing false claims, and two counts of money laundering. He was taken into custody after the verdict. The United States is also seeking the forfeiture of all funds derived from or involved in this scheme.
Sentencing for Warner, 38, of Smyrna, Ga., is scheduled for June 25 at 2:00 p.m. before United States District Judge Charles A. Pannell, Jr. In determining the actual sentence, the Court will consider the United States Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by Special Agents of the Internal Revenue Service – Criminal Investigation. If you believe you may be a victim of tax return-related identity theft please contact the IRS Identity Protection Specialized Unit at 800-908-4490, extension 245 (Mon. - Fri., 7 a.m. - 7 p.m. local time).
Assistant United States Attorneys Stephen H. McClain and Thomas J. Krepp are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Information Office at [email protected] or (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney’s Office for the Northern District of Georgia is www.justice.gov/usao/gan.