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15 April 2014
Wilson Man Sentenced for String of Armed Robberies of Wilson Convenience StoresRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on Thursday, April 10, 2014, United States District Judge Terrence W. Boyle sentenced ARTAVIOUS QUONTA BODDIE, 24, to 235 months imprisonment followed by five years supervised release. The Court also imposed restitution in the amount of $666.00.
A Federal Grand Jury returned a Criminal Indictment on October 8, 2013. On December 18, 2013, BODDIE pled guilty to conspiring to rob a business engaged in interstate commerce, in violation of Title 18, United States Code, Section 1951, and using and carrying a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A).
According to the Indictment, BODDIE conspired to rob three businesses from February 21, 2013, to February 24, 2013. The investigation revealed that on February 21, 2014, BODDIE approached the clerk at Discount Cigarettes in Wilson, North Carolina, and while brandishing a firearm, threatened to kill the clerk if the clerk did not comply with BODDIE’s demands. BODDIE robbed the establishment of an undisclosed amount of money, cigarettes and lottery tickets.
On February 24, 2013, BODDIE robbed the Kangaroo Express in Wilson, North Carolina of $80. Approximately 45 minutes later, BODDIE entered Fuel Doc in Lucama, North Carolina, and stole $406. During both of these robberies, BODDIE brandished a firearm.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Wilson Police Department; the Wilson County Sheriff’s Office; the Johnson County Sheriff’s Office; and the Kenly Police Department. Assistant United States Attorney Ethan A. Ontjes served as prosecutor on behalf of the Eastern District of North Carolina.
Williamson's Mccormick Faces Federal False-statement ChargeRead the Press Release
CHARLESTON, W.Va. – United States Attorney Booth Goodwin today charged Darrin McCormick, 50, of Williamson, West Virginia, with making a materially false statement in a federal matter. According to the charge, filed in United States District Court in Charleston, McCormick’s false statement pertains to suspicious banking activity by Aracoma Contracting, LLC, which held an account at the Bank of Mingo, located in Mingo County, West Virginia. The charge explains that McCormick’s false statement concerned a matter within the jurisdiction of the Federal Bureau of Investigation (FBI) and the Internal Revenue Service (IRS). The charging document, referred to as an “information,” is attached.
“Federal investigations are serious matters,” said U.S. Attorney Goodwin, “and providing false information to federal investigators is a serious crime. When people try to lead investigators astray with false statements, justice suffers, and that hurts all of us.”
Today’s charge stems from an investigation being conducted by the FBI and IRS Criminal Investigation. Assistant United States Attorney Thomas Ryan is handling the prosecution.
NOTE: An information is merely an accusation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
West Hartford Woman, New Haven Man, Charged with Tax EvasionRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that STEPHANIE ELLIOTT, 41, of West Hartford, and MICHAEL CARTER, 50, of New Haven, have been indicted for tax evasion.
This matter stems from an Internal Revenue Service investigation into high income taxpayers who have had little or no federal withholding taken out of their paychecks. The investigation revealed that individuals allegedly submitted fraudulent W-4 forms claiming numerous exemptions and had no money withheld from their wages.
The six-count indictment against ELLIOTT alleges that, during the 2007 through 2012 tax years, she paid no federal income taxes on approximately $482,912 in income she received, resulting in a federal tax loss of approximately $100,011.
The three-count indictment against CARTER alleges that, during the 2010 through 2012 tax years, he paid no federal income taxes on approximately $254,332 in income he received, resulting in a federal tax loss of approximately $52,679.
ELLIOTT and CARTER are employed as nurses with the State of Connecticut’s Department of Mental Health and Addiction Services.
The indictments were returned under seal by a federal grand jury in New Haven on April 9. ELLIOTT appeared before U.S. Magistrate Judge Garfinkel in Bridgeport yesterday, and CARTER appeared before U.S. Magistrate Judge Smith in Hartford today. ELLIOTT entered a plea of not guilty. CARTER’s arraignment is scheduled for next week.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Susan Wines.
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(203) 821-3722 [email protected]Two Lawyers and Office Worker Convicted of Immigration Fraud Offenses Following Jury Trial in Manhattan Federal CourtRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FENG LING LIU, VANESSA BANDRICH, and RUI YANG, were found guilty yesterday in Manhattan federal court of one count of conspiracy to commit immigration fraud. LIU, BANDRICH, and YANG, who were initially charged in December 2012, were convicted following a nineteen-day jury trial presided over by U.S. District Judge Ronnie Abrams.
Manhattan U.S. Attorney Preet Bharara said: “As the jury found, Feng Ling Liu, Vanessa Bandrich, and Rui Yang assisted immigrants in obtaining asylum status under false pretenses, including by using concocted tales of persecution. These defendants will now join the twenty-seven others who have been convicted in connection with this sprawling immigration fraud scheme.”
According to the Indictment filed in Manhattan federal court, public court filings, and the evidence admitted at trial:
LIU, a lawyer, operated two law firms – the Law Offices of Feng Ling Liu and Moslemi and Associates, Inc. – both of which assisted aliens from China in obtaining asylum status through fraud. LIU and her employees profited by creating and submitting asylum applications containing false stories of persecution purportedly suffered by alien applicants. BANDRICH worked as a lawyer at one of LIU’s firms, Moslemi and Associates, Inc. In that capacity, she prepared certain clients to tell false stories of persecution in immigration court proceedings related to their asylum application. BANDRICH also opened a separate law firm, Bandrich and Associates, Inc., (“Bandrich Firm”) that assisted clients in obtaining asylum status through fraud. YANG was an office worker at the Bandrich Firm and helped the firm’s clients prepare their false asylum applications.
The defendants each face a maximum sentence of five years in prison on the count of conspiracy to commit immigration fraud. LIU, 48, of Manhattan, New York, is scheduled to be sentenced by Judge Abrams on July 25, 2014. BANDRICH, 34, of Manhattan, New York, is scheduled to be sentenced by Judge Abrams on July 31, 2014. YANG, 30, of Flushing, New York, is scheduled to be sentenced by Judge Abrams on August 1, 2014. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendants’ sentences will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The case is being handled by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Rebecca Mermelstein, Robert Boone and Patrick Egan are in charge of the prosecution.
Feng Ling Liu et al Indictment
Three Bridgestone Corp. Executives Indicted for Roles in Fixing <br /> Prices and Rigging Bids on Auto Parts Installed in U.S. CarsRead the Press Release
A Cleveland federal grand jury returned an indictment against one current executive and two former executives of Bridgestone Corp. for their roles in an international conspiracy to fix prices of automotive anti-vibration rubber parts sold in the United States and elsewhere, the Department of Justice announced today.
The indictment, filed today in the U.S. District Court for the Northern District of Ohio in Toledo, charges Yoshiyuki Tanaka, Yasuo Ryuto and Isao Yoshida, all Japanese nationals, with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to allocate sales of, to rig bids for, and to fix, raise and maintain the prices of anti-vibration rubber parts sold to Toyota Motor Corp., Nissan Motor Corp., Suzuki Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and certain of their subsidiaries, affiliates and suppliers, in the United States and elsewhere.
“Today’s indictment again demonstrates that antitrust violations are not just corporate offenses but also crimes by individuals,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The division will continue to vigorously prosecute executives who circumvent the law in order to maximize profits by harming consumers.”Tanaka was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including manager at Bridgestone and executive vice-president at Bridgestone’s U.S. subsidiary Bridgestone APM Co., from approximately 1991 through at least February 2011. He is currently manager of the anti-vibration rubber original equipment international planning section. Ryuto was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including general manager and director, from approximately 1991 through at least June 2008; he is no longer employed by the company. Yoshida was employed by Bridgestone in various positions involving anti-vibration rubber parts sales, including manager and general manager, from approximately 1997 through at least September 2008 ; he is no longer employed by the company.
The indictment alleges that Tanaka, Ryuto, Yoshida and their co-conspirators conducted meetings and communications in Japan to reach collusive agreements regarding the sale of automotive anti-vibration rubber products to automakers in the United States and elsewhere. The indictment alleges that the conspiracy involved agreements affecting the Tacoma, Camry, Tundra, Sequoia, Corolla, Sienna, Venza and Highlander. According to the indictment, Tanaka participated in the conspiracy from at least as early as January 2004 until at least June 2008; Ryuto participated in the conspiracy from at least as early as April 2001 until at least May 29, 2008; and Yoshida participated in the conspiracy from at least as early as January 2001 until at least July 2008.
Bridgestone manufactures and sells a variety of automotive parts, including anti-vibration rubber parts, which are comprised primarily of rubber and metal, and are installed in suspension systems and engine mounts as well as other parts of an automobile. They are installed in automobiles for the purpose of reducing road and engine vibration. On Feb. 13, 2014, Bridgestone agreed to plead guilty and to pay a $425 million criminal fine for its role in the conspiracy.
To date, 32 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 26 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.29 billion in fines.
Each of the individuals is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.Today’s charges are the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. These cases were brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio. Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 216-522-1400.
Tennessee Husband and Wife Sentenced to 36 Months for Tax FraudRead the Press Release
James E. Beavers and Beverly S. Beavers of Knoxville, Tenn., were each sentenced to serve 36 months in prison followed by three years of supervised release, the Justice Department and Internal Revenue Service (IRS) announced today. James and Beverly Beavers were also each ordered to pay restitution in the amount of $591,123. On March 20, 2013, a jury sitting in Knoxville, Tenn., found the couple guilty of conspiracy to defraud the United States and filing false claims for tax refunds. They have been in custody since they were convicted.
Court documents and the evidence at trial showed that James Beavers held a Ph.D. in civil engineering and was employed as an engineering consultant. He was formerly employed as the director of an academic engineering center at the University of Tennessee. Beverly Beavers owned a small formalwear and jewelry store in Knoxville.
According to court documents and the evidence presented at trial, in June 2009, James and Beverly Beavers arranged to have a fraudulent 2008 tax return prepared by PMDD Services LLC, a tax return preparation firm that helped clients claim exorbitant tax refunds specifically intended to help the clients pay off their personal debts. The tax return falsely reported that their personal debts, including the amount of the Beavers’ mortgage and the limits on their credit cards, were actually income on which federal income tax was withheld. This fictitious income and tax withholding were reported to the IRS on false Forms 1099-OID, which were prepared by Penny Jones of PMDD Services based on information provided by James and Beverly Beavers. As a result of the fraudulently inflated income and withholding, the Beavers’ 2008 tax return claimed a fraudulent tax refund of over $591,000. Upon receiving the funds, James and Beverly Beavers paid off their home mortgage, then conveyed their newly unencumbered real estate to sham trusts in order to impede IRS efforts to collect the erroneously paid refund. They later filed false amended tax returns for the 2006 and 2007 tax years, also prepared by Jones, requesting fraudulent tax refunds of $193,056 and $202,625, respectively. Jones pleaded guilty to related tax crimes and was sentenced to 144 months in prison in January 2013.
Assistant Attorney General Kathryn Keneally of the Tax Division commended the efforts of special agents of IRS – Criminal Investigation who investigated the case and Trial Attorneys Jonathan Marx and Jed Silversmith of the Tax Division who prosecuted the case, with local assistance from the U.S. Attorney’s Office for the Eastern District of Tennessee.
Additional information about the Tax Division and its enforcement efforts may be found at the division website .
Synthetic Drugs – Real Consequences Summit 2014Read the Press Release
ATLANTA - Synthetic drugs are a growing problem that threaten the health and safety of the younger population across Georgia. As these drugs — commonly marketed under nonthreatening labels such as “bath salts,” spice,” or “molly”— have increased in popularity, communities have struggled to understand what these substances are and the threats they present.
“Synthetic drugs pose a deadly danger for our young people who, in search of a ‘good time,’ choose to ignore the risks,” said United States Attorney Sally Quillian Yates. “Our ability to turn the tide on this growing problem is not just through prosecutions and convictions; it is through education as well. We are seeking the help of those who touch every part of a child’s life to help reinforce the message that synthetic drugs -- by whatever name they are called -- is not the way to go.”
Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented, “The sale of synthetic drugs has become a growing problem locally, regionally and nationally. These drugs are made from a variety of dangerous chemical compounds that can be fatal upon one use. This educational summit is a proactive step in combatting the growing trend of synthetic drug abuse. Each stakeholder can contribute a positive course of action to combat this growing problem.”
Mistakenly perceived as legal alternatives to illicit drugs such as marijuana, ecstasy, and LSD, synthetic drugs also have the unfortunate street reputation of being safer to consume than traditional illegal drugs. In fact, the real consequences of abusing these drugs are far different. Consumption of synthetic drugs has been linked to multiple fatalities in Georgia alone. Moreover, many of the more popular substances have been linked with serious health problems including seizures, panic disorders, and kidney and liver failure, to name just a few. The effects are unpredictable, because the substances often contain a number of unknown drugs chemicals at varying potencies, so that the consumer has no idea what he or she is taking, and those who manufacture these substances constantly change their chemicals and formulas in an effort to stay hidden from law enforcement.To promote better understanding in combating this problem, the U.S. Attorney’s Office for the Northern District of Georgia, the Drug Enforcement Administration, the Georgia Bureau of Investigation, and the Georgia World Congress Center Department of Public Safety are conducting this summit to explore the abuse of synthetic drugs in Georgia. This one-day summit, happening April 15, 2014, features prominent speakers from law enforcement, public health, and drug abuse victims who seek solutions to these problems.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Surveyor in Maverick County Pleads Guilty in Connection with Bribery, Kickback and Bid-Rigging SchemeRead the Press Release
Marcelo Alvarez, a 55-year-old surveyor and consultant from Eagle Pass, faces up to ten years in federal prison and full restitution to Maverick County after pleading guilty to a bribery charge in connection with an alleged bribery, kickback and bid-rigging scheme announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse.
Appearing before United States District Judge Alia Moses this afternoon in Del Rio, Alvarez pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. According to court documents, between 2010 and 2012, Alvarez paid $100 to $200 on multiple occasions to Maverick County elected officials, including two county commissioners, for their support in securing county construction projects. Ultimately, Maverick County paid in excess of $800,000 to Amistad Consulting, a company which Alvarez was connected to, to perform engineering, project management and consulting services for the county. Alvarez, designated by Amistad Consulting as the Resident Project Representative, received payment for his services of approximately $300,000 between 2010 and 2012.Alvarez remains on bond pending sentencing scheduled for October 1, 2014.
This ongoing investigation is being conducted by the Federal Bureau of Investigation and the Texas Department of Public Safety. Individuals who have first-hand information about corruption, fraud, or bribery related to Maverick County are urged to contact the FBI at (210) 225-6741. Assistant United States Attorneys Michael Galdo and Bryan N. Reeves are prosecuting this case on behalf of the Government.
Statement from the Department of Justice CondemingRead the Press Release
ALBUQUERQUE – Last week the Department of Justice announced findings that the Albuquerque Police Department has systemic failures that have led to a pattern or practice of unconstitutional use of force, including deadly force. Although these problems are serious and run deep, we have the commitment of the City to work together to bring about meaningful reform within the Albuquerque Police Department.
THREATS OF VIOLENCE AGAINST POLICE OFFICERSWe have learned that fliers advocating violence against police officers are being disseminated in Albuquerque. The Justice Department condemns threats of violence against police officers, and encourages all sectors of the community to participate in the critical dialogue that will bring about the reform that will promote constitutional policing and will rebuild the community’s trust in its Police Department. The path to reform is through dialogue among the City, the Police and the many communities that make-up Albuquerque, and the negotiation and implementation of a court-enforceable agreement.
Individuals who wish to have input into developing the reforms or who have information relevant to the Justice Department’s investigation into the use of force by the Albuquerque Police Department are encouraged to contact us by email at [email protected] or by calling our toll free number, (855) 544-5134, which is available for both English and Spanish speakers.
Spruce Pine Attorney Sentenced to 27 Months for Filing False Tax ReturnsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Graham Mullen sentenced a Spruce Pine man, who was an attorney, engineer and appraiser, to 27 months in prison for making false statements on his tax returns, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Randy Alan Carpenter, 56, was also ordered to serve one year under court supervision and to pay $507,995 as restitution to IRS.
Joining U.S. Attorney Tompkins in making today’s announcement are Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service - Criminal Investigation Division (IRS-CI), John A Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) and Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation, Office of the Inspector General (FDIC-OIG).
According to court records and today’s sentencing hearing, Carpenter received over $1.2 million in professional fees in 2005 and 2006 from his work at a failed real estate development near Spruce Pine, N.C., known as the “Villages of Penland.” Carpenter pleaded guilty to the tax charges in May 2013. As a condition of his plea agreement, Carpenter was also ordered to cooperate with the IRS in filing amended tax returns. When announcing his sentence, Judge Mullen noted that although Carpenter’s sentencing was not intentionally set for April 15th, the court agreed with the prosecution’s argument that Carpenter’s sentence should be a general deterrent to those might be tempted to intentionally file false tax returns.
Carpenter will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled jointly the FBI, IRS and FDIC-OIG. The case is being prosecuted by Assistant United States Attorneys Michael E. Savage and Courtney Bumpers of the U.S. Attorney’s Office in Charlotte and Trial Attorney Gregory Bailey of the U.S. Department of Justice’s Criminal Tax Division.
Seven Charged in Alleged Stolen Identity Tax Refund Fraud SchemesRead the Press Release
PROVIDENCE, R.I. – Seven individuals allegedly involved in tax refund fraud schemes which used stolen and fraudulent identities to defraud the Internal Revenue Service of more than $1.6 million dollars have been charged in federal court in Providence, announced United States Attorney Peter F. Neronha. Four individuals have pleaded guilty and a fifth is expected to plead guilty next week. Two defendants are awaiting trial.
Government reports indicate that losses due to Stolen Identity Refund Fraud – commonly referred to as SIRF – totals in the billions of dollars. In the last year alone, the Department of Justice and U.S. Attorney’s offices have charged more than 880 defendants for their involvement in SIRF schemes. The IRS resolved and closed approximately 963,000 SIRF cases.
“The allegations in these cases are another stark reminder that in the digital age, it is easier than ever to commit fraud against the taxpayers both as a whole and individually. Combatting such criminal behavior requires constant vigilance – on the part of law enforcement and private citizens alike. Safeguarding personal information is a critical ingredient in defeating the kind of brazen schemes involved here,” commented United States Attorney Peter F. Neronha. “I want to thank HSI, the Secret Service, the IRS, and the Rhode Island State Police, who have been the leaders in the investigation of these types of sophisticated, computer related crimes, particularly in Rhode Island. They do this kind of work incredibly well.”
According to court documents and information presented to the court, in January 2013, Homeland Security Investigations (HSI) agents in Boston conducted a routine border search of Jairo Morales, 29, of Providence, who was flying in from the Dominican Republic. In a laptop computer agents allegedly identified evidence consistent with a tax refund fraud scheme.
Through additional investigation by IRS-Criminal Investigation (IRS-CI), U.S. Secret Service and HSI, evidence was developed that Morales and Julianna Martins, 45, of Providence, allegedly orchestrated a stolen identity tax refund scheme which resulted in the filing of false federal income tax returns using allegedly stolen personal identity information of hundreds of individuals from Puerto Rico and fictitious W-2 forms from various companies. Fraudulently obtained tax refund checks ranging from approximately $3,000 to $10,000 were sent to multiple Providence addresses allegedly under their control. Martins, Morales, Lucia Morales, 55, of Providence, and Casmiro Santos, 36, of Providence, and others allegedly deposited United States Treasury checks totaling in excess of $596,000 into accounts allegedly controlled by the defendants. Each defendant is criminally responsible for a subset of that amount to be determined by the court.
Additionally, it is alleged in court documents that Maria Paulino, 25, of Providence, a bank teller, assisted Martins in opening bank accounts using fraudulent identity information and negotiated checks on behalf of Morales, Martins, and their associates.
Julianna Martins and Jairo Morales have pleaded guilty to conspiracy, theft of government property and aggravated identity theft. At sentencing they face statutory penalties of up to 15 years in federal prison, with a mandatory minimum sentence of 2 years imprisonment; $500,000 in fines; 3 years supervised release; and restitution to the United States Treasury.
Lucia Morales and Maria Paulino have pleaded guilty to theft of government property. At sentencing they face statutory penalties of up to 10 years imprisonment; $250,000 fine; 3 years supervised release; and restitution to the United States Treasury.
According to a signed plea agreement filed with the court, Casmiro Santos has agreed to plead guilty to charges of theft of government property and aggravated identity theft. He is scheduled to be arraigned on April 21, 2014.
Julianna Martins, Jairo Morales, Lucia Morales and Maria Paulino are scheduled to be sentenced in U.S. District Court the week of June 23rd.
In a separate matter, according to court documents and information presented to the court, in January 2012, Richard Lara, 22, of Providence, and Julian Balbi, 22, of Providence, were arrested by Rhode Island State Police during a traffic stop. A search of their vehicle resulted in the discovery of approximately 87 United States treasury checks totaling approximately $596,000.
According to court documents, further investigation by the IRS-CI, U.S. Secret Service, and R.I. State Police developed evidence that Lara and Balbi allegedly orchestrated a stolen identity tax refund scheme with intended losses in excess of $1,000,000 by using stolen personal identity information of approximately 1,300 individuals.
An indictment was returned February 26, 2014, charging Lara and Balbi with conspiracy, theft of government property and aggravated identity theft. In convicted, they face statutory penalties of up to 15 years imprisonment, with a mandatory minimum sentence of 2 years imprisonment; $500,000 in fines; up to 3 years supervised release; and restitution to the United States Treasury. They have pleaded not guilty to the charges contained in the indictment and are awaiting trial.
An indictment and information are merely allegations and are not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and John P. McAdams.
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Contact: 401-709-5357
[email protected]San Joaquin County Tax Preparer Pleads Guilty to Preparing Fraudulent Tax ReturnsRead the Press Release
FRESNO, Calif. —Sarad Chand, 62, of Ripon, pleaded guilty today to aiding and assisting in the preparation of a false income tax return, United States Attorney Benjamin B. Wagner announced. Chand also agreed to entry of a permanent injunction precluding him from preparing or filing federal tax returns for anyone other than himself.
According to court documents, Chand prepared tax returns from an office in Ripon under the name S. Chand Tax & Accounting Service Inc. He assisted his clients to obtain large tax refunds by falsifying deductions and credits on the returns. The false tax returns caused the government to lose $38,932 in tax revenues over a period of more than four years.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Mark J. McKeon and Megan Richards are prosecuting the case.
Chand is scheduled to be sentenced by Judge Lawrence J. O'Neill on June 16, 2014. Chand faces a maximum statutory penalty of three years in prison 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.
San Antonio Businessmen Sentenced to Federal Prison for A Fraud and Tax Scheme Involving More Than $130 Million in Real Dollar LossesRead the Press Release
In San Antonio this morning, United States Chief District Judge Fred Biery handed down prison sentences to two individuals for their roles in what is believed to be the largest real dollar loss fraud and tax related case ever prosecuted in the Western District of Texas announced United States Attorney Robert Pitman, Acting FBI Special Agent in Charge Aaron C. Rouse and IRS-Criminal Investigation Special Agent in Charge Steve McCollough.
Larry Kimes, the manager of AccounTex Financial Services, LLC, was sentenced to 12 years in federal prison followed by three years of supervised release and ordered to pay $132 million restitution after pleading guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge last month.
Charles Pircher, manager of a series of Professional Employer Organizations (PEOs) based in San Antonio, including Service Professionals, was sentenced to 11 years in federal prison followed by three years of supervised release and ordered to pay $132 million restitution after pleading guilty to a Klein tax fraud conspiracy charge and a mail fraud conspiracy charge in November 2013.
“The sentencing of so-called ‘white collar’ defendants to significant terms of imprisonment such as the judge imposed in this case today should send a strong message to those who concoct fraudulent schemes - schemes that result in real losses to real people,” stated United States Attorney Robert Pitman.
In February, three other individuals who also entered guilty pleas in connection with this fraudulent scheme were sentenced to federal prison by Judge Biery. John Bean, owner of Synergy Personnel, a Professional Employer Organization (PEO) based in San Antonio, as well as an agent, representative, officer, license holder and accountant of several San Antonio and Austin based PEOs, including Service Professionals; Pat Mire, owner and manager of several San Antonio-based PEOs, including Service Professionals; and, Mike Solis, an executive assistant at several San Antonio based PEOs, including Service Professionals, were sentenced to six years, three years and three years in federal prison, respectively.
By pleading guilty, the defendants admitted that between 2002 and 2008, they participated in a scheme in which they stole more than $130 Million from the clients of a series of PEOs operated by the defendants. The PEOs entered into staff leasing agreements with various client companies to manage the companies’ payroll and insurance programs. Kimes, Pircher and the other co-conspirators diverted to their own use and benefit clients’ monies that should have been paid for payroll taxes and insurance premiums.
“The defendants involved in this, the largest ever single criminal tax case in San Antonio's history, knowingly violated our country's Tax laws. They chose to ignore their responsibilities and live a lavish lifestyle on money belonging to their employees and to the U.S. Government. IRS Special Agents will continue to aggressively pursue these types of very serious tax crimes,” stated IRS-Criminal Investigation Special Agent in Charge Steve McCollough.
“Motivated by greed, the defendants perpetrated an extensive fraud scheme, designed to steal money from their clients and taxpayers over a number of years. The FBI will continue to work with our partners to identify, investigate and prosecute others, like the defendants, who seek unjust enrichment by victimizing others,” stated FBI Acting Special Agent in Charge Aaron C. Rouse.
This case was investigated by agents with the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Thomas J. McHugh prosecuted this case on behalf of the Government.
Rhode Island Man Pleads Guilty for Failing to Register as A Sex OffenderRead the Press Release
BOSTON – A Rhode Island man pleaded guilty today for failing to register as a sex offender last year.
Ryan Hathaway, 32, pleaded guilty before U.S. District Court Judge Rya W. Zobel to failure to register as a sex offender. In March 2014, Hathaway was indicted. Sentencing is scheduled for July 16, 2014.
In 2004, Hathaway pleaded guilty in Massachusetts state court to indecent assault and battery on a child under age 14. This conviction required him to register as a sex offender. In 2012, he was convicted in Massachusetts state court for failure to register as a sex offender, and was incarcerated. After being released in October 2013, Hathaway briefly stayed at a shelter in Boston. On November 5, he left the shelter and his GPS tracking bracelet was found on a street in Boston the following day. On Dec. 7, 2013, Hathaway was arrested in Pawtucket, R.I. Investigators later learned that Hathaway had been living in Rhode Island for about a month without registering as a sex offender.
United States Attorney Carmen M. Ortiz and John Gibbons, U.S. Marshal of the U. S. Marshals Service, District of Massachusetts, made the announcement today. The case is being prosecuted by Special Assistant U.S. Attorney Timothy Landry of Ortiz’s Major Crimes Unit.
Queens Man Pleads Guilty to Possession of Counterfeit $100 BillsRead the Press Release
ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that O’Neal Walker, 33, of Queens, N.Y., pleaded guilty to possession of counterfeit bank notes before U.S. District Court Judge Frank P. Geraci. The charge carries a maximum penalty of twenty years in prison and a fine of up to $250,000.
Assistant U.S. Attorney Craig R. Gestring, who is handling the case, stated that on September 22, 2013, New York State Troopers stopped a vehicle driven by the defendant on Interstate 390 in the town of Wayland in Steuben County. Walker was driving 102 mph in a 65 mph zone and had no valid driver’s license. Following the defendant’s arrest, troopers located $8,700 in $100 bank notes inside the car along with a financial ledger book. Inside the ledger were columns which showed dollar amounts and abbreviations for retail locations. The New York State Police contacted the United States Secret Service for investigative assistance.
Secret Service Agents determined that the 87 $100 bills recovered were actually sophisticated counterfeit bills, complete with water marks, color shifting ink, and embedded security strips. They further determined that the ledger notations were references to Home Depot, Lowes, Target, and Wal-Mart stores. As part of the investigation, Secret Service Agents reviewed store surveillance video from the dates and times of the transactions listed in the ledger. The defendant was identified on video at several area stores passing counterfeit $100 bank notes. Subsequent investigation determined that Walker had passed an additional $14,100 in counterfeit $100 bank notes within the Western District of New York. At the time the defendant passed the counterfeit bills here, he was on pre-trial release for similar conduct in the State of Ohio.
As part of the investigation, Secret Service Agents learned that Walker was also identified passing counterfeit $100 bank notes in several other states. Specifically, the defendant was identified passing $2,000 in counterfeit $100 bank notes in Ohio; $600 in counterfeit $100 bank notes in Massachusetts; $13,500 in counterfeit $100 bank notes in Syracuse, within the Northern District of New York; $19,700 in counterfeit $100 bank notes in Michigan; and $6,800 in counterfeit $100 bank notes in Arkansas. The total loss due to Walker’s actions was $65,300.The guilty plea is the culmination of an investigation on the part of Special Agents of the United States Secret Service, under the direction of Special Agent in Charge, Tracy Gast, and Investigators and Troopers of the New York State Police, under the direction of Superintendent Joseph A. D'Amico.
The defendant was originally released in January 2014, but was remanded to custody after violating conditions of his pre-trial release. Walker remains in federal custody until his sentencing which is scheduled for July 10, 2014 at 3:30 p.m. before Judge Geraci.President Obama Grants CommutationRead the Press Release
WASHINGTON, D.C – Today, President Barack Obama granted clemency to the following individual:
• Ceasar Huerta Cantu, also known as Cesar Huerta Cantu – Katy, Texas
Offenses: Conspiracy to possess with intent to distribute marijuana; money laundering (Western District of Virginia)
Sentence: 180 months’ imprisonment (as amended), five years’ supervised release
(May 11, 2006)
Commutation Grant: Prison sentence commuted to 138 months’ imprisonmentPostal Employee Stole $9,697.63 from Two Cayuga County Post OfficesRead the Press Release
SYRACUSE, NEW YORK - United States Attorney Richard S. Hartunian announced that JOHANNA KUHLMANN pled guilty Friday, April 11, 2014, to the felony offense of Theft of Government Property, in violation of 18 U.S.C. § 641, before the Hon. David N. Hurd in the United States District Court in Syracuse, New York. Sentencing for KUHLMANN is scheduled for August 8, 2014. As a result of the conviction, KUHLMANN is facing a term of imprisonment of up to ten years, supervised release of up to three years, a fine of up to $250,000, and a special assessment of $100.
KUHLMANN admitted that she took books of stamp from the Weedsport Post Office and converted them to cash at the Port Byron Post Office. KUHLMANN also admitted that she received payments for post office box rental fees but did not enter them into the United States Postal Service deposits. In total, KULHMANN admitted that she stole and converted to her own use $9,697.63, of cash which belonged to the United States Postal Service, between October 1, 2008 and January 9, 2011.
KUHLMANN’s prosecution is the result of an investigation by the United States Postal Service Office of Inspector General. The prosecution was handled in the United States Attorney’s Office by Assistant U.S. Attorney Tamara B. Thomson.
Pocatello Man Pleads Guilty to Failing to Register as A Sex OffenderRead the Press Release
POCATELLO – Jeramie James McGuire, 35, of Pocatello, Idaho, pleaded guilty yesterday in United States District Court to failure to register as a sex offender, U.S. Attorney Wendy J. Olson announced. He was indicted on November 26, 2013.
In October, 2013, Bannock County Sheriff’s detectives received information that McGuire was living at a home in Pocatello. An investigation showed that McGuire had been convicted of Felony Rape in the Third Degree in 1997 in Baker County, Oregon, and that he was required to register as a sex offender. Records showed that McGuire had previously registered as a sex offender in Wyoming, but had been residing at the Pocatello house and working in Pocatello without registering as a sex offender in Bannock County. Idaho law required McGuire to register within two days after moving to Idaho to live or work.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and from five years to lifetime supervised release.
Sentencing is set for July 7, 2014, before U.S. District Judge Edward J. Lodge at the federal courthouse in Pocatello.
The case was investigated by the Bannock County Sheriff’s Department and the United States Marshals Service.
People Reminded of Stiff Penalties for Violation Tax Laws as Filing Deadline ApproachesRead the Press Release
Several Ohioans have been found guilty and sentenced to prison for violating federal tax laws over the past few months, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, said Kathy Enstrom, Special Agent in Charge of IRS Criminal Investigation’s Cincinnati Field Office.
As the 2014 tax filing deadline approaches, these cases serve as reminders that there are civil and sometimes criminal penalties to filing erroneous tax returns.
“Tax day is not fun, but the vast majority of Americans who properly report and pay their fair share need to know that we will aggressively prosecute those who shirk or flaunt their obligations,” Dettelbach said.
“IRS Criminal Investigation takes violations of the tax law very seriously,” Enstrom said. “The investigative work done by Criminal Investigation is a part of an aggressive effort by the IRS to combat tax fraud on all fronts. With the April 15 tax deadline upon us, it is important for people to have confidence that when they pay their taxes, their neighbors, friends and co-workers are doing the same.”
Details on a few cases over the past year:
United States v. Gooch and Scott: Don P. Gooch and Gerard F. Scott, self-proclaimed “citizens of the world,” found guilty of conspiring to defraud the Internal Revenue Service out of more than $8 million. Gooch, 64, of East Cleveland, was sentenced to eight years in prison while Scott, 38, was sentenced to 10 years in prison .
In early 2011, Scott obtained a tax identification number for a purported trust (the Gerard Frank Scott Trust) and filed false Forms 1099-INT with the IRS stating that the trust had paid millions of dollars of interest income to Gooch, a woman identified at trial as Scott’s wife, and two other trusts purportedly set up by Scott and Gooch, from which a total of $17 million of taxes had purportedly been withheld. Based on those false 1099 forms, the conspirators caused false income tax returns to be filed for Gooch and Scott’s wife, and the two other trusts claiming false income tax refunds totaling approximately $8,033,930, according to court documents.
United States v. Mace: Brandon Mace, 35, of Canton was sentenced to more than six years in prison for claiming false income tax refunds totaling nearly $5.5 million. Mace filed the false claims while incarcerated on state charges. Mace pleaded guilty to two counts stating that he prepared and filed false income tax returns for the years 2008 and 2009 claiming false tax refunds in the amounts of $207,000 and $5,292,000, respectively.
United States v. Hall: A former Toledo medical doctor was sentenced to five years in prison after previously pleading guilty to crimes related to the dispensation of 1,300 pills of Oxycodone and fraudulently billing Medicaid for more than $78,000. Darrell A. Hall, 54, pleaded guilty to conspiracy to distribute a controlled substance, health care fraud and a tax count. He failed to pay $97,384.88 in taxes that he owed to the Internal Revenue Service owed on behalf of EDM Health Services, LLC, between 2007 and 2010, according to court records.
Niagara Falls Man Sentenced for Bringing a Gun into the Seneca Niagara CasinoRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Mashama Hill, 38, of Niagara Falls, N.Y., who was convicted of being a felon in possession of a firearm, was sentenced to 48 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that on February 13, 2011, the defendant became upset with other patrons at a card table at the Seneca Niagara Casino and threatened to leave and return with a gun. The incident was reported to security and a short time later, Hill was observed on video surveillance returning to the casino in different clothing. Security personnel approached the defendant and ultimately located a loaded firearm.
The sentencing is the culmination of an investigation on the part of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Thomas J. Cannon, New York Field Office, the New York State Police - Seneca Niagara Gaming Detail, under the direction of Captain Daniel B. Hart and security personnel from the Seneca Niagara Casino.Navajo Man Sentenced to Federal Prison for Child Sexual Abuse ConvictionRead the Press Release
ALBUQUERQUE – Ronald Martinez, 39, an enrolled member of the Navajo Nation who resides in Borrego Pass, N.M., was sentenced this morning to 42 months in federal prison followed by five years of supervised release for his child sexual abuse conviction. Martinez will be required to register as a sex offender after he completes his prison sentence.
Martinez was arrested in April 2013, on an indictment charging him with two counts of aggravated sexual abuse and two counts of abusive sexual contact. According to the indictment, between 1996 and 2002, Martinez aided and abetted sexual contact and abuse with two child victims who had not attained the age of 12 years on the Navajo Indian Reservation.
On Nov. 20, 2013, Martinez pleaded guilty to the two aggravated child sexual abuse charges. According to Martinez’s plea agreement, in Sept. 2011, a 17-year-old victim reported being sexually abused by Martinez when she was five or six years old. The victim further reported that Martinez also abused another child during that same period in time. Martinez admitted abusing the two victims by directing a third child to sexually abuse and to sexually assault the two victims. Martinez also admitted threatening the two victims so that they would not reveal the abuse. Martinez admitted that the child who abused the two victims did so after being threatened by Martinez.
This case was investigated by the Gallup office of the FBI. It was prosecuted by Assistant U.S. Attorney Elaine Y. Ramirez 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/.
Mishicot Man Sentenced for Marijuana CultivationRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on April 14, 2014, Steven M. Pelnar (age: 50) of Mishicot, was sentenced to six months incarceration and three years’ probation by Chief United States District Judge William C. Griesbach. Pelnar had previously entered a guilty plea to a single-count of marijuana cultivation. According to the plea agreement and other documents filed with the court, Pelnar operated a marijuana grow operation on his Mishicot area farm and was tending to 330 marijuana plants at the time of his arrest.
The court also ordered Pelnar to pay a $5000 fine and entered an order of forfeiture for a twenty-acre parcel of land used to grow the drug. The forfeited land has a market value of approximately $50,000.
The case was investigated by Special Agents from the Drug Enforcement Administration and the Manitowoc County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
Milwaukee Area Woman Indicted for Wire, Mail, and Credit Card FraudRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on April 15, 2014, a federal grand jury in Milwaukee returned an indictment charging Stacy T. Jenson of Waterford, Wisconsin, also known as Stacy T. Foote (age 50). Ms. Jenson is charged with seventeen counts of wire, mail, and credit card fraud in violation of Title 18, United States Code, Sections 1029(a)(2), 1341, and 1343. Ms. Jenson was formerly the owner and operator of Elite Sports, through which she organized and promoted sporting leisure time events in southeast Wisconsin.
The indictment alleges that during the period from approximately January 2009 until March 2012, Jenson carried out a scheme to defraud certain business entities, primarily her employer at the time, Industrial Electric Wire & Cable, Inc. (“IEWC”), of New Berlin, Wisconsin. During her employment there as an office assistant, IEWC made Jenson the company’s event planner, and in that capacity, gave her access to company credit cards and checks to use to arrange various company social events. As part of her scheme, Jenson allegedly used IEWC credit cards and checks for purposes other than those which the company had authorized, often for activities in connection with her separate and part-time “Elite Sports” business. The indictment further alleges that Jenson fraudulently obtained a $68,000 loan in connection with the scheme.
According to the indictment, Jenson fraudulently obtained the loan and used IEWC checks and credit cards for unauthorized purposes to steal more than 1.9 million dollars.
Each of the fifteen mail or wire fraud charges contained in the indictment carries a maximum possible penalty of up to twenty years in prison and a fine of up to $250,000, or both. Each of the two credit card fraud charges contained in the indictment carries a maximum possible penalty of up to ten years in prison and a fine of up to $250,000, or both.
This matter was investigated by the Federal Bureau of Investigation and has been assigned to Assistant United States Attorney Stephen A. Ingraham for prosecution.
The public is cautioned that an indictment is merely the formal method of presenting charges in federal court and does not constitute evidence of the defendant’s guilt. The defendant is presumed innocent until such time, if ever, as the government establishes her guilt beyond a reasonable doubt.
Michigan Resident Sentenced to 18 Months in Prison for Obstructing SEC InvestigationRead the Press Release
SAN FRANCISCO – Karim Iskander Bayyouk was sentenced today to 18 months in prison for obstructing an investigation by the Securities and Exchange Commission (SEC) into insider trading, announced U.S. Attorney Melinda Haag and FBI Special Agent in Charge David J. Johnson.
Bayyouk, 49, of Livonia, Mich., was found guilty by a jury on Sept. 3, 2013, of one count of obstruction of justice, in violation of 18 U.S.C. § 1505. The jury found that on or about May 31, 2007, Bayyouk obstructed and impeded an SEC investigation into securities fraud and insider trading relating to Biosite Incorporated securities. The guilty verdict followed a five-day jury trial before the Honorable Edward M. Chen, United States District Court Judge, in San Francisco.
Evidence at trial showed that on or about March 23, 2007, Bayyouk purchased approximately $100,000 in Biosite call options. Two days later, on March 25, 2007, Biosite announced it was merging with another company. After the merger announcement, Bayyouk sold the options and realized a profit of approximately $947,922. On or about May 31, 2007, attorneys from the SEC’s Division of Enforcement in San Francisco, Calif., conducted a telephone interview of Bayyouk as part of an insider trading investigation. During the interview, Bayyouk falsely stated, among other things, that he did not speak to anyone before investing in Biosite, that no one suggested Biosite to him, and that he did not suggest Biosite to his brother, who also traded Biosite call options on March 23, 2007. Evidence showed that the defendant traded in Biosite based on a tip from Bassam Salman, his brother-in-law.
On Sept. 30, 2013, in a separate trial, Salman was found guilty by a jury of one count of conspiracy to commit securities fraud, in violation of 18 U.S.C. § 371, and four counts of securities fraud, in violation of 15 U.S.C. §§ 78j(b) and 78ff. On April 9, 2014, Salman was sentenced to three years in prison and ordered to pay $738,539.42 in restitution.
Judge Chen also sentenced Bayyouk to three-years of supervised released and ordered him to pay a $5,000 fine.
Adam A. Reeves and Robert S. Leach are the Assistant U.S. Attorneys prosecuting the case with the assistance of Maryam Beros, Rayneisha Booth, and Patricia Mahoney. The prosecution is the result of a lengthy investigation by the FBI with substantial assistance from the Division of Enforcement of the SEC’s San Francisco Regional Office.
(Bayyouk indictment )
Miami Attorney Charged with Not Filing Income Tax ReturnsRead 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 E. Siff, of Davie, was charged in an information with three counts of failing to file an income tax return, in violation of Title 26, United States Code, Section 7203.
According to the information, since at least 1982, Siff worked as an attorney in the Miami office of an international law firm, first as an associate, then as a partner. Siff failed to file personal United States income tax returns since at least tax year 1997. Between 2001 and 2011, Siff earned approximately $8,248,401 in partnership profits. For tax years 2009 through 2011, Siff failed to make an income tax return reporting gross partnership income of $716,464, $705,967, and $694,449, respectively.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mexican National Sentenced to Prison for Illegal Re-EntryRead the Press Release
Follow @SDILNewsThe United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today that on Monday, April 14, 2014, Fausto Sotelo-Estrada was sentenced in U.S. District Court in East St. Louis, Illinois, to a three-year prison term for Illegal Re-Entry by an Aggravated Felon.
Sotelo-Estrada, 31, of Ixtapa, Mexico, admitted at his sentencing hearing that he had been previously convicted of narcotics trafficking in Circuit Court in Sangamon County, Illinois, in 2008. Sotelo-Estrada was deported to Mexico in 2012, after his release from state prison.
On August 14, 2013, Immigration and Customs Enforcement, (ICE) agents arrested Sotelo-Estrada in Madison County, Illinois. Sotelo-Estrada pled guilty in U.S. District Court in East St. Louis, Illinois, on December 4, 2013. Sotelo-Estrada has been continuously confined since his arrest.
The investigation which resulted in Sotelo-Estrada’s conviction was conducted by ICE agents assigned to the St. Louis, Missouri, field office.
The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Manhattan U.S. Attorney Announces Lawsuit And$2 Million Civil Settlement with Academic Advantage, and Civil and Criminal Charges Against Former Academic Advantage Employees, in Scheme to Defraud Federal Government into Paying for Tutoring Services ThatRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Brian M. Hickey, the Special Agent-in-Charge of the Northeastern Region of the United States Department of Education’s Office of Inspector General (“ED-OIG”), today announced a number of civil and criminal actions relating to a fraudulent scheme to submit false claims for reimbursement on behalf of THE ACADEMIC ADVANTAGE (“ACADEMIC ADVANTAGE”), an educational services provider, in connection with a federally-funded program that provided after-school tutoring services to public school children. The civil actions announced today include: (1) the filing of a civil fraud lawsuit against ACADEMIC ADVANTAGE and nine of its former employees — ARLETTE HERNANDEZ, EDWIN GUZMAN, LUZ MERCEDES, NILSA DALMASI, KRISTIN JOYNER, RAYVON JONES, ALICIA MCKAY, TERESA OSORIO and AYESHA YOUNG (collectively, “INDIVIDUAL DEFENDANTS”) — in connection with the company’s submission of fraudulent claims for reimbursement between 2010 and 2012; (2) the settlement of the civil claims against ACADEMIC ADVANTAGE for $2 million and admissions of wrongdoing; and (3) the settlement of the civil claims against EDWIN GUZMAN and LUZ MERCEDES for $61,819 and $101,758, respectively, and admissions of wrongdoing. The criminal actions include: (1) the filing of a Criminal Complaint charging ARLETTE HERNANDEZ with fraud; and (2) the guilty pleas of EDWIN GUZMAN and LUZ MERCEDES to criminal fraud charges.
U.S. District Judge Lewis A. Kaplan approved the civil settlements with ACADEMIC ADVANTAGE, GUZMAN and MERCEDES yesterday. HERNANDEZ was arrested on March 5, 2014, and presented that day before U.S. Magistrate Judge James L. Cott. GUZMAN pled guilty to a Criminal Information before U.S. District Judge Andrew L. Carter on January 9, 2014, and MERCEDES pled guilty to a Criminal Information before U.S. Magistrate Judge Kevin N. Fox on February 6, 2014.
Manhattan U.S. Attorney Preet Bharara said: “With the actions announced today, we continue our push to clean up corruption in the tutoring of our school kids. Having previously exposed schemes by Princeton Review and TestQuest to fraudulently bill the government for tutoring services that they never provided, we now hold a third company, Academic Advantage, accountable for engaging in identical misconduct. And we also hold nine former employees of Academic Advantage to account – criminally, civilly or both – for their roles in the fraudulent billing scheme. This should serve as a reminder both to educational services providers and their employees that if they seek to cheat the system, we will hold them accountable.”
ED-OIG Special Agent-in-Charge Brian M. Hickey said: “The Supplemental Education Services (SES) program provides critical resources for deserving students who seek to improve their academic performance. The actions announced today against Academic Advantage and nine of its employees allege that Academic Advantage billed and retained SES payments for students it did not tutor. That is unacceptable. Tracking down those who would cheat this important program is a priority of our office.”
According to the Civil Complaint against ACADEMIC ADVANTAGE and the INDIVIDUAL DEFENDANTS, the allegations in the Criminal Complaint against HERNANDEZ, the Criminal Informations against GUZMAN and MERCEDES, and the Civil Settlements with ACADEMIC ADVANTAGE, GUZMAN, and MERCEDES, all of which were filed in Manhattan federal court:
From 2010 through 2012 (“Covered Period”), the New York City Department of Education (“NYCDOE”) received funds from the federal government to pay for Supplemental Educational Services (“SES”), which included after-school tutoring for students attending underperforming public schools. The NYCDOE entered into contracts with private entities to provide SES tutoring to students in New York City public schools. Students were eligible to receive SES tutoring if they met certain criteria, such as attending a school that had been identified as needing improvement or restructuring for at least two years. Private entities contracted by the NYCDOE to provide SES tutoring were required to have each student who attended a tutoring class sign a daily attendance sheet. A representative from the entity was also required to sign the attendance sheet, certifying that SES tutoring had been provided to all of the students whose signatures appeared on the attendance sheet.
ACADEMIC ADVANTAGE
During the Covered Period, ACADEMIC ADVANTAGE contracted with the NYCDOE to provide SES tutoring to students in New York City. ACADEMIC ADVANTAGE employed individuals whom it referred to as “Site Managers” to supervise its SES program at particular New York City public schools. The Site Managers supervised other employees, known as “Program Aides,” who were also assigned to those schools. Employees with the title “Director” supervised the Site Managers and Program Aides. Of the INDIVIDUAL DEFENDANTS, AYESHA YOUNG was a Director and the rest were Site Managers.
The Billing Scheme
During the Covered Period, ACADEMIC ADVANTAGE obtained federal funds by falsely reporting that it had provided SES tutoring to certain students when no SES tutoring had, in fact, been provided to those students. As part of the scheme, ACADEMIC ADVANTAGE repeatedly submitted to the NYCDOE bills for students who had not actually received any tutoring.
As part of the civil settlements, ACADEMIC ADVANTAGE admitted that:
- Site Managers routinely forged student signatures on daily attendance sheets to make it appear that more students had attended Academic Advantage’s SES tutoring classes than had, in fact, attended;
- Site Managers instructed Program Aides to forge student signatures on daily attendance sheets;
- Program Aides followed the instructions they received from those Site Managers and forged student signatures on daily attendance sheets;
- Site Managers and Program Aides instructed students to sign daily attendance sheets for SES tutoring classes that those Site Managers and Program Aides knew the students either had not attended or would not be attending; and
- Site Managers routinely signed false certifications on daily attendance sheets, falsely certifying that after-school tutoring had been provided to all of the students whose purported signatures appeared on the sheets, even though the Site Managers knew that tutoring had not been provided to many of those students.
ACADEMIC ADVANTAGE further admitted that some Directors knew – while others deliberately ignored or recklessly disregarded – that Site Managers and Program Aides were forging student signatures on daily attendance sheets or otherwise falsifying student attendance records. ACADEMIC ADVANTAGE also admitted that it used the falsified daily attendance sheets to prepare invoices that it then submitted in connection with its SES tutoring program, and that the invoices ultimately resulted in ACADEMIC ADVANTAGE being paid federal funds for SES tutoring that it never provided.
HERNANDEZ has been charged civilly and criminally with forging student signatures on daily attendance sheets, with instructing Program Aides to forge student signatures on daily attendance sheets, and with signing false certifications on daily attendance sheets. During the Covered Period, HERNANDEZ was observed by others forging student signatures on daily attendance sheets. She was also observed possessing a completed daily attendance sheet for a tutoring session that had not yet taken place. Moreover, during the Covered Period, there were more than 200 instances where HERNANDEZ reported students as being present for after-school tutoring on days when the students were absent from school.
In connection with his guilty plea and civil settlement, GUZMAN has admitted to forging student signatures on daily attendance sheets, to instructing Program Aides to forge student signatures on daily attendance sheets, and to signing false certifications on daily attendance sheets. GUZMAN has agreed to the entry of a judgment against him in the amount of $61,819.
Similarly, in connection with her guilty plea and civil settlement, MERCEDES has admitted to forging student signatures on daily attendance sheets and to signing false certifications on daily attendance sheets. MERCEDES has agreed to the entry of a judgment against her in the amount of $101,758.
The remaining INDIVIDUAL DEFENDANTS have been charged civilly with, among other things, forging student signatures on daily attendance sheets, prompting Site Managers or Program Aides to forge student signatures on daily attendance sheets, and/or signing false certifications on daily attendance sheets. The charges against them remain pending.
HERNANDEZ, 32, of New York, New York, was charged with one count of conspiring to make false statements and one count of making false statements, and faces a maximum sentence of 10 years in prison.
GUZMAN, 39, of New York, New York, pled guilty to one count of conspiring to make false statements, and LUZ MERCEDES, 48, of New York, New York, pled guilty to two counts of conspiring to make false statements and one count of making false statements. GUZMAN faces a maximum sentence of five years in prison, while MERCEDES faces a maximum sentence of 15 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
This is the third coordinated proceeding this Office has brought against New York City SES providers and their employees for falsifying attendance records and billing for tutoring they did not provide. In 2012 and 2013, this Office filed civil charges against The Princeton Review, Inc. (“Princeton Review”), and civil and criminal charges against several of its former employees. In 2013, this Office filed civil charges against TestQuest, Inc. (“TestQuest”), and civil and criminal charges against several of its former employees. Princeton Review settled the civil charges against it by admitting misconduct and committing to pay the Government up to $10 million. TestQuest settled with the Government for $1.75 million and admissions of wrongdoing. The following former employees of Princeton Review and TestQuest have pled guilty to criminal fraud charges, settled civil fraud charges, or both: Robert Stephen Green, Ana Azocar, Zorayma Azocar, Michael Logan, and Sandra Allen.
Mr. Bharara thanked the Office of the ED-OIG for its extraordinary assistance in this case.
The criminal cases are being handled by the Complex Frauds Unit, and Assistant U.S. Attorneys Joseph P. Facciponti and Christopher B. Harwood are in charge of the prosecution.
The civil cases are being handled by the Civil Frauds Unit, and Assistant U.S. Attorney Christopher B. Harwood is in charge of each of the matters.
The charges contained in the Criminal Complaint against HERNANDEZ are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. v. Academic Advantage, et al. Complaint
U.S. v. Academic Advantage, et al. Settlement
U.S. v. Mercedes Court-Endorsed (Academic Advantage) Settlement Agreement
U.S. v. Arlette Hernandez Complaint
U.S. v. Luz Mercedes Information
U.S. v. Edwin Guzman InformationMan Accused of Threatening Senator Manchin Is Indicted by Federal Grand JuryRead the Press Release
Charleston, W.Va. – A 49-year-old man was indicted today by a federal grand jury in Charleston for threatening to murder United States Senator Joseph Manchin, III. According to the four-count indictment, Steven Anthony Major, of Barboursville, W.Va., is alleged to have made four separate threats to murder Senator Manchin from March 17 through March 20, 2014.
Major was arrested on Friday, March 21, 2014, on a federal criminal complaint. The complaint alleged that Major made multiple calls to Senator Manchin’s Charleston and D.C. offices. During the calls, Major identified himself and made violent threats against Senator Manchin and his family members.
Major faces up to 10 years in prison on each count, if convicted.
The investigation was conducted by the Federal Bureau of Investigation, the United States Capitol Police, and the West Virginia State Police. Assistant United States Attorney Haley Bunn is in charge of the prosecution.
Click here for a copy of the indictment.
Note: The charge contained in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
Lincoln Man Sentenced for Conspiracy to Distribute Crack CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that on April 15, 2014, Markham Deshay Jones, age 46 of Lincoln, was sentenced to 77 months in prison for conspiracy to distribute and possess with intent to distribute cocaine base (crack cocaine) between January of 2011 and February of 2012. Following the prison term, Jones will serve six years on supervised release. He was also ordered to pay a $100 special assessment.
An investigation showed that Jones was responsible for the distribution of at least 28 grams (approximately one ounce) of cocaine base, also known as crack cocaine, in the Lincoln area between January of 2011 and February of 2012.
The matter was investigated by the Lincoln/Lancaster County Narcotics Task Force, which includes officers of the Lincoln Police Department, the Lancaster County Sheriff's Department, the Federal Bureau of Investigation, (FBI), and the University of Nebraska-Lincoln Police Department.
Liberty County Man Sentenced for Child PornographyRead the Press Release
Department of Justice
Office of Public AffairsBEAUMONT, Texas – A 70-year-old Daisetta, Texas man has been sentenced to five years in federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Kenneth Claude Davenport pleaded guilty on Sep. 25, 2013 to possession of child pornography and was sentenced to 60 months in federal prison today by U.S. District Judge Thad Heartfield.According to information presented in court, on Mar. 16, 2011, law enforcement officers executed a search warrant at Davenport’s residence in Liberty County, Texas during which two computers and a hard drive were seized. A forensic examination of the computers and equipment revealed 20 videos containing approximately 1,500 images of child pornography. These images included prepubescent minors engaging in sexually explicit conduct, including depictions of violence and minors engaging in sexually explicit conduct with adults. Davenport admitted to using the computer to download and view child pornography approximately twice a week. Davenport was indicted by a federal grand jury on June 20, 2013 and charged with child pornography violations.
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This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the U.S. Secret Service, Houston Field Office Internet Crimes Against Children Task Force and the Liberty Police Department and prosecuted by Assistant U.S. Attorney Randall L. Fluke.Latrobe Woman Charged with Income Tax EvasionRead the Press Release
PITTSBURGH - A resident of Latrobe, Pa., has been indicted by a federal grand jury in Pittsburgh on charges of income tax evasion, United States Attorney David J. Hickton announced today.
The four-count indictment named Debra J. Feather as the sole defendant.
According to the indictment, during the years 2007 through 2010, the defendant’s joint federal tax returns were false since they failed to declare substantial income and thus resulted in substantial additional tax owing to the United States.
The law provides for a maximum total sentence, at each count, of five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Leo M. Dillon is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Justice Department Sues to Shut Down Alabama Tax Return PreparersRead the Press Release
The United States has requested that the federal district court in Montgomery, Ala., permanently bar Tonja Renee Toney and Jenika Williams from preparing federal income tax returns for others, the Justice Department announced today.
According to the complaint, which was filed yesterday in the U.S. District Court for the Middle District of Alabama, Toney and Williams each prepared tax returns as employees of Premier Tax in Montgomery in 2007 and 2008, and both pleaded guilty to charges related to their work at Premier Tax. The complaint further alleges that both prepared false and fraudulent tax returns after being interviewed by Internal Revenue Service (IRS) agents in connection with their activities at Premier Tax.
The complaint alleges that both defendants have knowingly prepared federal income tax returns for customers that understated the customers’ tax liability by reporting false income in order to inflate the taxpayer’s claim to an Earned Income Tax Credit.
Return-preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2014 . The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of fraudulent tax preparers. Information about these cases is available on the Justice Department website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Related Materials:
United States v. Tonja Renee Toney, et al.
Complaint for Permanent InjunctionJury Finds Defendant Guilty of Felony Federal Firearm and Drug Distribution OffensesRead the Press Release
Following a one-day trial before District Court Judge Callie V. S. Granade, a jury returned a guilty verdict on April 15, 2014 against Lawrence Perrier for federal firearm and drug trafficking offenses. He faces a mandatory minimum penalty of 15 years imprisonment.
The case was investigated by the Mobile County Sheriff’s Office in conjunction with the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Special Assistant United States Attorney Dominic A. Rossetti and Assistant United States Attorney Gregory Bordenkircher. The sentencing for Mr. Perrier has been set for July 14, 2014.
Hogsett Announces Indictment of Putnam County Reserve DeputyRead the Press Release
Sheriff’s son provided false testimony before federal grand jury in investigation alleging excessive force by colleague
INDIANAPOLIS - U.S. Attorney Joseph H. Hogsett and the Special Agent in Charge of the Federal Bureau of Investigation Indianapolis Division, Robert A. Jones, announced the arrest of Andrew Fenwick, a/k/a “Mo”, age 24, of Greencastle, Indiana. Fenwick serves as a Reserve Deputy with the Putnam County Sheriff’s Department (PCSD) and is the son of Putnam County Sheriff Steve Fenwick.
A federal grand jury indictment, unsealed this morning, charges Fenwick with three counts of false declarations made by Fenwick before it. The indictment alleges that Fenwick provided false testimony during an investigation into alleged activity of excessive force of PCSD Deputy Terry Joe Smith. On March 4, 2014, the grand jury returned an indictment alleging that Smith had used excessive force against citizens on four occasions in his capacity as a PCSD Deputy. The charges against Smith remain pending and are currently set for trial on April 28, 2014.
The grand jury indictment alleges that Fenwick provided material false statements with respect to (1) the degree to which Fenwick used force to assist Smith in the apprehension of an individual near Moore’s Bar in Greencastle on November 6, 2011, (2) whether Fenwick had seen a police report prepared by Smith concerning Smith’s use of force against another individual at the Cloverdale Truck Stop on December 28, 2013, and (3) whether the victim of Smith’s use of force at the Cloverdale Truck Stop had struck Fenwick with a closed first before Smith used physical force against this individual.
"Just one month ago, I was here discussing the conduct of a Putnam County Sheriff’s deputy involving allegations of the mistreatment of citizens in his custody,” said Hogsett. “Interfering with an investigation will not be tolerated by this office and we will hold those who do so, fully accountable. These charges allege that Mr. Fenwick chose to lie rather than assist authorities as they investigated allegations of excessive force by a law enforcement officer who has taken an oath to ‘serve and protect’,” Hogsett asserted.
Hogsett praised the outstanding law enforcement work by the Federal Bureau of Investigation. The FBI is a leading partner in the U.S. Attorney's Public Integrity Working Group, which was launched in April 2012 with the stated purpose of aggressively investigating allegations of misconduct and wrongdoing by public officials in Indiana.
According to Assistant United States Attorneys Bradley A. Blackington and MaryAnn T. Mindrum, who are prosecuting the case for the government, Smith could be sentenced to up to five years in federal prison for each count, and could also face significant fines and federal supervision for up to three years once he has served his prison term.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
High-Ranking Member of Black P-Stones Gang Pleads Guilty to Racketeering Conspiracy and Firearm ChargesRead the Press Release
April 15,2014NORFOLK, Va. – Marcellus N. Williams Jr., a.k.a. “Math,” “P-Shooter,” “Manny,” 27, of Newport News, pleaded guilty today to racketeering conspiracy, as well as possessing and discharging a firearm in furtherance of a crime of violence.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; David A. O’Neil, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, made the announcement after the plea was accepted by United States Magistrate Judge Tommy E. Miller.
Williams was charged in a superseding indictment returned on December 9, 2013, with racketeering conspiracy, two counts of conspiracy to commit murder in aid of racketeering, two counts of attempted murder in aid of racketeering, two counts of possessing and discharging a firearm in furtherance of a crime of violence, and conspiracy to distribute and possess with intent to distribute marijuana. Williams faces a maximum penalty of 20 years in prison on the racketeering conspiracy charge and a mandatory consecutive sentence of ten years to life in prison on the firearm charge when he is sentenced on July 10, 2014, in Norfolk.
In a statement of facts filed with his plea agreement, Williams admitted that he was a member of a violent street gang called the Black P-Stones, also referred to as the P-Stone Bloods and Cobra Stones, which operated as a criminal enterprise located primarily in the Beechmont, Courthouse Green, and Woodview neighborhoods in the Denbigh area of Newport News. The Black P-Stones engaged in various criminal activities including murders, robberies, illegal drug trafficking, and obstruction of justice. Williams joined the gang in approximately 2002 and held the rank of “First Superior.” As the First Superior, Williams approved, planned, and participated in criminal activities, including attempted murders, robberies, attempted robberies, and drug trafficking. On April 27, 2008, Williams and co-conspirators participated in a shooting in broad daylight on Warwick Boulevard in Newport News targeting a rival gang member. Several bullets were fired at the rival gang member, wounding the rival in the right shoulder, right jaw, and neck areas. On December 10, 2008, Williams and co-conspirators planned a shooting in Williamsburg to retaliate against a rival gang member who exhibited disrespect toward Williams’s girlfriend. During the shooting, approximately seven to eight bullets were fired at the rival gang member’s home, with bullets entering the home’s living room and front door while two people were inside. On March 9, 2009, Williams and co-conspirators planned a shooting in Newport News to retaliate against members of the rival “10-1 Mafia Crips” gang for damaging the reputation of the P-Stones. Several bullets were fired at a 10-1 Mafia Crip member’s home, with one bullet nearly striking one of the people inside.
The investigation of this case was led by the FBI’s Safe Streets Peninsula Task Force, with the assistance of the Newport News Police Department and the James City County Police Department. Assistant United States Attorney Eric M. Hurt and Trial Attorney Louis A. Crisostomo of the Organized Crime and Gang Section in the Justice Department’s Criminal Division are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Hawaii Man Sentenced to Prison for Filing False Claim for Tax Refund and Filing False Retaliatory Liens Against Four Federal OfficialsRead the Press Release
Francis E. Chandler III was sentenced by U.S. District Judge Susan Oki Mollway late yesterday to serve 37 months in prison and ordered to pay $3,066,629 in restitution for filing a false claim for tax refund and false retaliatory liens against four federal government officials, the Justice Department and Internal Revenue Service (IRS) announced today.
According to court documents, Chandler filed a fraudulent 2007 federal income tax return seeking a tax refund of $3,969,012 based on his false claim of interest income and tax withholding of $6,222,850. In April 2010, a federal grand jury indicted Chandler for filing the false claim against the United States. Shortly after his indictment and in retaliation for the performance of their official duties, Chandler knowingly filed false liens in Hawaiian public records against the property of two federal judges, the U.S. Attorney and an Assistant U.S. Attorney who were involved in the prosecution of his false claims case. On Feb. 11, 2013, pursuant to a plea agreement, Chandler pleaded guilty to one count of filing a false claim against the United States and one count of filing a false retaliatory lien against four government officials.
“This sentence shows that those who seek to obtain fraudulent refunds by participating in bogus schemes risk prosecution, incarceration and substantial financial consequences,” said Assistant Attorney General Kathryn Keneally for the Tax Division. “This sentence should also send a loud message that retaliating against government officials who are simply doing their jobs will not be tolerated.”
“With the income tax filing deadline today, this sentencing is a stark reminder that there is no secret formula to evade one's tax obligation,” said Special Agent in Charge Kenneth Hines of IRS-Criminal Investigation in the Pacific Northwest. “When individuals seek to abuse the tax system by claiming bogus senseless tax refunds, they steal not only from the U.S. Treasury, they in effect steal from every one of us who pays taxes. Chandler then tried to intimidate the very officials charged with upholding the law by filing retaliatory liens against them. That sort of brazen tactic is simply illegal.”
Assistant Attorney General Keneally commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, and of Tax Division Senior Litigation Counsel Jen E. Ihlo and Trial Attorney Matthew J. Kluge, who prosecuted the case.
More information about the Tax Division and its Tax Defier Initiative can be found at the division website.
Hattiesburg Man Pleads Guilty to Production of Child Pornography and Possession of Child PornographyRead the Press Release
Hattiesburg, Miss - Grantham Armstrong Mitchell, 20, of Hattiesburg, pled guilty in U.S. District Court today to production of child pornography and possession of child pornography, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
Mitchell admitted producing a video of himself and a minor child engaging in sexually explicit conduct in Orange Beach, Alabama in 2012. Mitchell also possessed numerous images and videos of minor children, as young as twelve years old, engaging in sex with adults.
The investigation in this case began when a complaint was received from the National Center for Missing and Exploited Children regarding possible child pornography being uploaded to a Dropbox account via the Internet. An investigation was conducted by members of the FBI’s Child Exploitation Task Force (CETF) which is comprised of special agents of the FBI and investigators from the Mississippi Attorney General’s Office and the Rankin County Sheriff’s Office. The investigation led to the execution of a search warrant for a computer and other electronic devices owned by Mitchell. A forensic review of the computer determined that it contained images and videos of suspected child pornography and led to the identity of the minor child in the video produced by Mitchell.
“A top priority of the Justice Department is to vigorously prosecute those who choose to steal the innocence of young children,” said U.S. Attorney Davis. “Working with our law enforcement partners, we will continue to locate and bring charges against those who participate in the victimization of children.”
FBI Special Agent in Charge Daniel McMullen stated: “The CETF reflects the FBI’s commitment to advancing its approach to law enforcement to effectively combat evolving threats. By ensuring that investigators with complementary missions are working alongside one another—sharing intelligence, conducting meshed operations, combining physical resources—the FBI enhances its ability to protect children.” McMullen recognized the substantial and invaluable assistance provided by the other law enforcement agencies involved in the investigation which led to this arrest in this case. He thanked the Office of Mississippi Attorney General Jim Hood and the Rankin County Sheriff’s Office for their dedication to the case and to the Child Exploitation Task Force.
“It is an honor and privilege to be a part of this federal task force, which strengthens our fight against child predators in our state,” said Mississippi Attorney General Jim Hood.
Rankin County Sheriff Bryan Bailey stated: “We are proud to be a part of this Task Force to help protect children, not only in Rankin County, but throughout the state of Mississippi. We appreciate the good relationships we have developed with the State and with the FBI through Rankin County’s participation in the Child Exploitation Task Force.”
Grantham will be sentenced on July 21, 2014 at 9:00 a.m. by U.S. District Judge Keith Starrett. He faces a minimum of fifteen years and a maximum of thirty years in prison for production of child pornography, and a maximum of ten years in prison for possession of child pornography.
If you believe you have been a victim of fraud from a person or an organization soliciting relief funds on behalf of storm victims, contact the National Center for Disaster Fraud toll free at:
(866) 720-5721
You can also fax information to:
(225) 334-4707
or e-mail it to:
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Harrison County Men Indicted on Federal Drug ChargesRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistELKINS, WEST VIRGINIA — Two men from Harrison County have been indicted on federal drug charges alleging the illegal distribution of prescription painkillers.
United States Attorney William J. Ihlenfeld, II, announced that Jason MARPLE, age 35, of Clarksburg, West Virginia, and Casey SEARCY, 33, of Salem, West Virginia, were named in a three-count Indictment today charging them each with “Conspiracy to Possess with Intent to Distribute and to Distribute Oxycodone” and “Distribution of Oxycodone.” MARPLE was also charged with “Possession of a Firearm in Furtherance of a Drug Trafficking Crime.”
MARPLE and SEARCY each face up to twenty years in prison on the conspiracy and the distribution charges and MARPLE faces a minimum term of five years in prison on the firearm charge. Both men are in custody based upon criminal complaints issued at the end of March containing similar allegations.
The case will be prosecuted by Assistant United States Attorney Shawn A. Morgan, and was investigated by the Greater Harrison County Drug & Violent Crime Task Force. An indictment is merely an accusation and the defendant is presumed innocent unless and until proven guilty.
Greenbush Resident Pleads Guilty to Bath Salt Distribution ConspiracyRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Jessica
Bryden, 22, of Greenbush, Maine, pleaded guilty today in U.S. District Court in Bangor to conspiracy to possess with the intent to distribute and to distribute MDPV, a chemical compound commonly referred to as “bath salts” or “monkey dust.”According to court records, the members of the conspiracy illegally distributed MDPV in
Penobscot County and elsewhere between April and December 2011. Prior to October 21, 2011, MDPV was classified as a controlled substance analogue. On that date, it was reclassified as a
Schedule I controlled substance. The defendant packaged and distributed MDPV to other members of the conspiracy who were selling the drug in the Bangor area. She also collected payments for the drug from other members of the conspiracy.
The defendant faces up to 20 year in prison, a $1,000,000 fine, or both. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
Bryden is one of four defendants charged as part of the conspiracy. Co-defendants
Matthew Tardiff, 27, of Old Town, Maine, and Adam Hathorn, 36, and Tina Keaton, a/k/a
“Fumble” 32, both of Bangor, previously pled guilty to the conspiracy charge and await sentencing.
The case was investigated by the Maine Drug Enforcement Agency with assistance from the U.S. Drug Enforcement Administration.Four Sentenced for Meth DistributionRead the Press Release
POCATELLO – Co-defendants Antonio Tamez, 39, of American Falls, Idaho, Jesse Short, 33, and Imelda Ramos, 36, both of Pocatello, Idaho, and Dominga Tamez, 68, of American Falls, Idaho, were sentenced today in United States District Court for possession with intent to distribute methamphetamine, U.S. Attorney Wendy J. Olson announced.
U.S. District Judge Edward J. Lodge sentenced Antonio Tamez to 88 months, followed by five years of supervised release and 100 hours of community service; Jesse Short to 36 months, followed by four years of supervised release; Imelda Ramos to 24 months, followed by three years of supervised release and 80 hours of community service; and Dominga Tamez to 12 months, followed by three years of supervised release. The defendants pleaded guilty to the charges on January 22, 2014.
According to the plea agreements, on May 14, 2013, Antonio Tamez arranged by phone to deliver methamphetamine to an undercover officer. Tamez then met with the undercover officer in Heyburn, Idaho, where the defendant distributed in excess of fifty grams of actual methamphetamine. On May 3, 2013, Jesse Short arranged by phone with a confidential informant, who was working on the behest of law enforcement, to deliver methamphetamine. Short then met with the informant in Pocatello, Idaho, where he delivered in excess of five grams of actual methamphetamine to the informant. On May 3, 2013, Imelda Ramos traveled with a co-defendant to Pocatello, Idaho, with methamphetamine. There Ramos delivered to an informant in excess of fifty grams of actual methamphetamine. On May 21, 2013, Dominga Tamez drove co-defendants to deliver methamphetamine to a location in Heyburn, Idaho. At that location the co-defendants delivered methamphetamine to an undercover officer. In a post arrest interview Tamez admitted she knew she was driving the co-defendants to deliver methamphetamine.
Co-defendant Federico Cervera, 58, of Blackfoot, Idaho, is set for sentencing on May 12, 2014. He pleaded guilty on January 22, 2014, to possession with intent to distribute methamphetamine. He faces 10 years to life in prison, a maximum fine of $10 million, and at least five years of supervised release.
The case is the result of a joint investigation led by the Idaho State Police with assistance from the Bannock County Sheriff’s Office, Pocatello Police Department, Minidoka County Sheriff’s Office, Cassia County Sheriff’s Office, Bingham County Sheriff’s Office, Blackfoot Police Department, American Falls Police Department, and Power County Sheriff’s Office.
Fort Collins Man Appears in Court for Tax Evasion ChargesRead the Press Release
DENVER – Brian Eugene Annis, age 55, of Fort Collins, Colorado, was indicted by a federal grand last week on charges of tax evasion, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Annis appeared in court today for his initial appearance before U.S. Magistrate Judge Kristen L. Mix, where he was advised of the charges pending against him. He is scheduled to be arraigned Magistrate Judge Mix’s courtroom on April 18, 2014 at 1:30 p.m.
According to the indictment, from 2001 through at least the end of 2010, Annis was a resident of Fort Collins, Colorado and for those years he willfully did not file personal federal income tax returns. From at least on or about April 15, 2002, and continuing until at least March 21, 2010, Annis willfully evaded the payment of federal income taxes due and owing by him for the tax years 2001 through 2006, in an amount totaling approximately $131,307, plus interest and penalties allowed by law, by committing and causing to be committed affirmative acts of tax evasion.
Particularly, in 2004 Annis paid Creative Consulting Group and J.H. $2,100 to create an “International Business Trust” called Glacier Mountain Holdings and to appoint J.H. as the “Managing Fiduciary Party.” In December 2004 Annis and his spouse signed a Grant Deed to convey to Glacier Mountain Holdings their “equitable interest” in their personal residence located in Fort Collins, Colorado. In December 2005, a Grant Deed signed by J.H. conveyed back to Annis and his spouse the “equitable interest” in their personal residence.
In August 2006, the IRS mailed Annis multiple correspondences, which included substitute returns for the tax year 2001 and 2002 that the IRS prepared for Annis informing him that he owed the IRS taxes in the amount of $22,640 and $25,145, respectively.
In September 2006, Annis sent two letters to the IRS, for the two corresponding tax years aforementioned. In both letters, Annis disputed that he was subject to federal income taxes. In response to further correspondence by the IRS Annis sent the IRS additional letters stating: “I do not agree with any of the findings/adjustments in your letter dated 20-Oct-2006…. The federal income tax is an excise tax on privileged pursuits, not on common-occupation labor. As a private sector worker engaged only in un-privileged activity, compensation for my ‘common wage’ labor is outside the scope/jurisdiction of the federal income tax.” Throughout the course of the next several months into 2007, Annis sent similar correspondence to the IRS.
In November 2007, Annis sent J.H. an email in which Annis stated, “For now, we need to get the house back into the trust……I don’t know when the IRS is going to do an asset search (maybe they already have).” On December 4, 2007, Annis and his spouse signed a Grant Deed to convey to Glacier Mountain Holdings their “equitable interest” in their personal residence. Between at least December 4, 2007, and March 21, 2010, Annis annually paid Creative Consulting Group and J.H. to maintain Glacier Mountain Holdings.
“As we are all aware, today is tax day and most Americans will have fulfilled their tax obligation by the end of the day. Those individuals who commit tax fraud are merely stealing money and creating an unfair tax burden on honest tax paying citizens. Rest assured, IRS Special Agents will continue doing their job to ensure honest individuals do not have to pick up the tab of those committing tax evasion,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Annis was charged with; one count of tax evasion, which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count; four counts of failure to file a tax return, which carries a penalty of not more than 1 year in federal prison, and a fine of up to $100,000, per count.
This case was investigated by Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorney Pegeen D. Rhyne.
The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.Former IRS Worker Charged in Tax FraudRead the Press Release
Lora Lewis, 51, of Philadelphia, PA, a former Internal Revenue Service employee, was charged today by information with one count of filing false income tax returns, announced United States Attorney Zane David Memeger. Lewis worked as a contact representative for the IRS in the Philadelphia office.
According to the information, between 2007 and 2011, Lewis was receiving unemployment compensation which she did not report on her income tax returns; claimed tax credits which she was not eligible to claim, such as the first time home buyers credit, the earned income tax credit and the education credit; and deductions, such as IRA contributions that were never made, in order to reduce her taxable income. Lewis allegedly defrauded the government of $39,000.
If convicted, Lewis faces three years in prison, restitution to the IRS, a fine of up to $250,000, one year of supervised release, and a $100 special assessment.The case was investigated by the Internal Revenue Service Criminal Investigations, and the Treasury Inspector General for Tax Administration (TIGTA). It is being prosecuted by Assistant United States Attorney Virgil B. Walker.
Click here to view the indictment
An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525Former Detroit Public Library Official Pleads Guilty to BriberyRead the Press Release
A former Detroit Public Library official pleaded guilty to bribery charges today, U.S. Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement were Special Agent in Charge Paul M. Abbate, Federal Bureau of Investigation, Detroit Field Office, and Carolyn Weber, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation.
Timothy Cromer, 47, of West Bloomfield, the library's Chief Administrative and Technology Officer from 2006 to 2013, pleaded guilty before U.S. District Judge George Caram Steeh to bribery and conspiracy to commit bribery.
Cromer was charged with taking more than $1.4 million in bribes and kickbacks from contractors of the library.
According to the indictment, Cromer helped co-defendant James Henley create a business in 2007 called Core Consulting & Professional Services, and then arranged for Core to win a bid to provide information technology services to the library. The contract, along with various change orders and extensions that Cromer approved, caused the library to pay Core $1.8 million.
Cromer is also charged with receiving kickbacks from Ricardo Hearn, who is also charged in the indictment. Cromer was charged with approving no-bid professional services contracts for Hearn’s company, Cubemation, LLC, to perform information technology services for the library from 2008 until 2010. According to the indictment, Cubemation received about $2.8 million in payments from the Detroit Public Library. In total, Cromer is alleged to have accepted more than $1.4 million in kickbacks from Henley and Hearn.Through his plea, Cromer admitted that he received a bribe from Henley, and that he conspired with Hearn to commit bribery. A sentencing date will be set by the court. Codefendants Henley and Hearn previously pleaded guilty to conspiracy to commit bribery, and are scheduled to be sentenced on June 3, 2014.
United States Attorney McQuade said, "Our public libraries exist to enrich our citizens, not to generate profits for the officials who work there. Today's guilty plea to bribery charges reflects a betrayal to the honest public servants who have dedicated themselves to the Detroit Public Library and the people they serve."
“In cases like this, where a government official takes bribes and abuses a position of trust, it amounts to stealing directly from the community,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Public libraries serve a special purpose in enriching our communities, and government officials are entrusted with a great responsibility toward our citizens. The FBI Detroit Field Office, in concert with our local, state and federal partners, will continue to pursue those who breach the public’s trust, and hold them accountable under the law for their actions.”"The sizeable amount of the kickbacks Cromer received represents the degree to which he was cheating the public," said IRS Acting Special Agent in Charge Carolyn Weber. "It is unacceptable to help yourself to public funds, but if you do IRS-Criminal Investigation will be there to seek justice on behalf of the citizens of Detroit."
The case was investigated by agents of the FBI and the IRS. This case is being prosecuted by Assistant United States Attorneys Elizabeth A. Stafford and Julie Beck.Former City of Marietta Employees and Landlords Indicted for Section 8 Housing FraudRead the Press Release
ATLANTA - Shantel Bowens, Debbie Bailey, and Babatunde “Babs” Abass have been arraigned on charges of stealing funds from the federal Housing Choice Voucher Program, also known as “Section 8,” which provides rental assistance to low-income families.
“These defendants stole federal funds designed to help families afford safe and decent housing,” said United States Attorney Sally Quillian Yates. “In addition, the two defendants who were employed by the City of Marietta violated the public trust by abusing their positions in order to divert public money for their own use.”
“This indictment should send a strong message that HUD-OIG will aggressively pursue landlord fraud, especially when it is facilitated by persons in positions of public trust,” said Lester Fernandez, Special Agent in Charge for Region 4, U.S. Department of Housing and Urban Development – Office of Inspector General. “In partnership with state and local law enforcement and federal agencies, we are deeply committed to ensuring that scarce resources are not diverted to those who seek to enrich themselves. We will continue to seek program accountability and promote honest stewardship of taxpayer funds by grantees entrusted with taxpayer monies.”
“We always deeply regret the theft of public funds, but I am grateful that we have highly qualified City employees, whom we can count on to alert us to issues such as these,” said Mayor Steve Tumlin. “It is important to note that City Staff uncovered these discrepancies which were vigorously investigated by our own Police Department and in turn given to Federal authorities. The City strongly supports the prosecution of those responsible and we seek to ensure this type of crime never happens again.”
“The City of Marietta takes our responsibility to be good shepherds of Federal funds very seriously,” said Marietta Police Chief Dan Flynn. “Thus when our internal auditing process uncovered irregularities with Section 8 funds our City staff promptly referred the matter to the Marietta Police Department. When the police department investigation confirmed possible theft by former employees, we promptly notified our Federal HUD partners and the U.S. Attorney’s Office, and together we worked to expose the entire theft scheme and bring the responsible individuals into the criminal justice system. Overall, we appreciate the seamless cooperative manner in which our local and Federal partnership functioned and we fully support the U.S. Attorney’s Office in the on-going prosecution of this case. We believe it will send the right message that we are united and will not tolerate any theft of public funds.”
According to United States Attorney Yates, the charges, and other information presented in court: Bowens and Bailey were employed by the City of Marietta and were responsible for administering landlord and tenant enrollment for Section 8 participants in Marietta. To defraud the Section 8 program, Bowens and Bailey first identified former tenants who had been terminated from the program and reactivated the tenants’ accounts. They specifically chose tenants who were listed as unemployed or as having very low incomes, which would result in larger Section 8 payments.
Bowens and Bailey then altered computer records, linking the terminated tenants to Abass and Tunji “Chris” Imoukhuede, who were already registered as Section 8 landlords. As a result, the falsified computer records indicated that the terminated tenants were residing at properties purportedly owned by Imoukhuede and Abass. In fact, Imoukhuede and Abass did not own or rent the properties, and they were not the landlords of the terminated tenants.
As a result of Bowens’ and Bailey’s falsification of landlord, tenant and rental property information, federal Section 8 payments were issued to bank accounts controlled by Imoukhuede and Abass. In turn, Imoukhuede and Abass each withdrew the money and kept approximately 40 percent for himself. Each landlord then gave approximately 60 percent of the stolen funds to Brown, who split that amount with Bowens.
The scheme took place from January 2011 through June 2013. During that period, Marietta’s Housing Choice Voucher Program received over $4 million annually in Section 8 funds from the United States Department of Housing and Urban Development. As a result of the fraud, Bowens, Bailey, Imoukhuede and Abass obtained over $230,000 in federal funds.
In addition, from January 2010 through June 2013, Bowens arranged for a landlord enrolled in the Section 8 program to receive funds for a fictional tenant who was purported to be Bowens’ aunt. In fact, Bowens herself moved into the landlord’s property and lived there rent-free for over three years. Bowens’ housing costs, paid for through Section 8, totaled over $40,000.
Shantel Bowens, Debbie Bailey, Tunji “Chris” Imoukhuede, and Babatunde “Babs” Abass were indicted by a federal grand jury on March 25, 2014. Tunji Imoukhuede will be arraigned at a later date.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case was investigated by the U.S. Department of Housing and Urban Development Office of the Inspector General, the City of Marietta, and the Marietta Police Department.
Assistant United States Attorney Shanya J. Dingle is prosecuting the case.
This is part of an effort underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Chief Finance Officer Admits to Stealing Nearly $4 Million from His Employer and Pleads Guilty to Mail FraudRead the Press Release
CHARLOTTE, N.C. – The former Chief Finance Officer (CFO) of a Mint Hill-based company has admitted to stealing approximately $4 million from his former employer and has pleaded guilty to mail fraud, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina. Nathan Thomas Mroz, 39, of Charlotte, entered his formal guilty plea on Monday, April 14, 2014, before U.S. Magistrate Judge David S. Cayer.
U.S. Attorney Tompkins is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and court proceedings, from 2005 to 2013, Mroz was employed by an HVAC company as financial controller and later as CFO and had access to the company’s funds and books and records. Court documents show that over the course of his employment, Mroz exploited his position to create fake accounts payable invoices and to generate corresponding payments, which Mroz directed to himself or mailed to various credit cards he maintained. According to court documents, to cover up his scheme, Mroz fraudulently categorized the bogus company payments as legitimate business expenses in the company’s books and records. Court filings reflect that Mroz spent the stolen money on a wide array of personal expenditures, including vacations to Disneyland and Europe, luxury vehicles, private school tuition, jewelry and to purchase a $115,000 home for his nanny. In all, court documents indicate that Mroz stole approximately $4 million from his former employer.
Mroz pleaded guilty to one count of mail fraud and was released on bond. At sentencing, he faces a maximum prison term of 20 years and a $250,000 fine. As part of his plea agreement, Mroz has agreed to pay restitution, the amount of which will be determined by the Court at sentencing. A sentencing date for the defendant has not been set yet.
The investigation was handled by the FBI. The prosecution for the government is being handled by Assistant United States Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte.
April is National Financial Literacy MonthIn 2004, April was officially designated National Financial Literacy Month, to raise public awareness on the importance of personal financial education and to promote access to tools and information so individuals can better protect themselves from financial fraud.
The U.S. Attorney’s Office for the Western District of North Carolina reminds the public that financial scams come in different forms: Ponzi schemes, mortgage fraud, corporate fraud, investor fraud, credit card fraud, identity theft, telemarketing scams and fraudulent charity solicitations are some of the most common schemes. Prosecuting financial fraud continues to be a priority for the U.S. Attorney’s Office however, becoming educated consumers and investors is the public’s first line of defense against predatory schemes and financial scams.
Additional information on common financial schemes and financial literacy resources are available at:
• U.S. Department of Justice – Financial Fraud Enforcement Task Force www.stopfraud.gov
• Federal Bureau of Investigation – Common Fraud Schemes www.fbi.gov/scams-safety/fraud
• U.S. Department of Treasury - Financial Literacy and Education Commission www.mymoney.gov
• U.S. Department of Justice – U.S. Trustee Program www.justice.gov
Following Mass Shooting Incidents, Attorney General Holder Urges Congress to Approve $15 Million to Train Law Enforcement Officers for 'Active Shooter' SituationsRead the Press Release
Following the recent tragedies at a Jewish Community Center outside of Kansas City and at Ft. Hood, Attorney General Eric Holder urged Congress Tuesday to approve $15 million in funding for active shooter training for law enforcement officers to ensure they have the tools they need to effectively respond to threats, protect themselves, and save innocent lives.
“In the face of this urgent and growing threat – when the lives of innocent people are at stake – those who stand on the front lines need our full and unwavering support," Holder said in a video message posted on the Justice Department's website. "This critical funding would help the Justice Department ensure that America’s police officers have the tools and guidance they need to effectively respond to active shooter incidents whenever and wherever they arise."
“Over the last decade, the Justice Department and the FBI have helped provide cutting-edge active shooter training to 50,000 front-line officers. In the video message, Holder said continuing this training is critical since the patrol officers who arrive first on the scene are increasingly being relied on to respond directly to active shooters rather than wait for SWAT teams.”
The complete text of the Attorney General’s video message is below:
“Between 2000 and 2008, the United States experienced an average of approximately five active shooter incidents every year. Since 2009, this annual average has roughly tripled. Earlier this month, Fort Hood suffered the second mass shooting that community has experienced in just five years. And in a separate incident over the weekend, a gunman opened fire at a Jewish Community Center just outside of Kansas City.
“The Justice Department has concluded that federal hate crimes charges are appropriate in this case, and in the months ahead, we will do everything in our power to ensure that justice is served for every victim.
“But each of these tragic events is a heartbreaking reminder that mass shootings are all too common. And they have become increasingly deadly.
“As a nation, we must confront this alarming rise and all of its underlying causes – honestly, factually, and without regard for political consequence. We must deal with these incidents whenever they happen – but, just as importantly, we must prevent them whenever we can.
“Today’s Department of Justice committed to doing just that. We’re more determined than ever to prevent mass shootings. The FBI’s Behavioral Threat Assessment Center, which supports state, local and campus safety stakeholders, has worked diligently to respond to a nearly 200 percent increase in requests for assistance in the last year, and to help detect and mitigate potential active shooter situations.
“But we must also be prepared to respond quickly and effectively to active shooter incidents if and when they do occur. And in today’s world, the first response must often be led not by SWAT teams or specialized police units – but by the very first patrol officers to arrive on the scene.
“That’s why all law enforcement officers must have the best equipment and most up-to-date training to confront these situations – to stop active shooters in their tracks, to protect themselves, and to save innocent lives.
“Over the last decade, the Justice Department and the FBI have helped provide cutting-edge active shooter training to 50,000 front-line officers, more than 7,000 on-scene commanders, and over 3,000 local, state, and federal agency heads. This vital work must continue – but to provide training, we need adequate funding.
“Today, I am urging Congress to approve President Obama’s request for $15 million for active shooter training and other officer safety initiatives. This critical funding would help the Justice Department ensure that America’s police officers have the tools and guidance they need to effectively respond to active shooter incidents whenever and wherever they arise.
“Every day, America’s federal, state, local, and tribal law enforcement officials perform their duties with integrity, courage, and extraordinary valor. In the face of this urgent and growing threat – when the lives of innocent people are at stake – those who stand on the front lines need our full and unwavering support. The safety of the American people demands it. And the men, women, and children whose lives are impacted by active shooters every year deserve nothing less.”
The full video message is available at http://www.justice.gov/agwa.php.
Florida Resident Pleads Guilty to Violent Crimes Linked to Debt DisputeRead the Press Release
A Florida resident who threatened family members over a $20,000 debt and used firebombs to torch one home and threaten another, pleaded guilty today to a variety of charges, announced U.S. Attorney Jenny A. Durkan. SANG NGOC UNG, 54, of Margate, Florida pleaded guilty to Collection of Extension of Credit by Extortionate Means, Interstate Travel in Aid of Racketeering Activity, Unlawful Possession of a Destructive Device and Carrying a Firearm During and in Relation to a Crime of Violence. In his plea agreement UNG admits that in the early morning hours of June 10, 2013 he set fire to his relative’s home on S. Cloverdale Street in Seattle. The fire extensively damaged the home and forced the homeowner, her adult children and a friend to flee through a window and the garage. Shortly after that fire, investigators went to a second home associated with the family and discovered a destructive device that had not ignited. When sentenced by U.S. District Judge Richard A. Jones on July 25, 2014, prosecutors will recommend no more than 25 years in prison and the defense can recommend no less than 5 years. Judge Jones is not bound by the recommendations and can impose any sentence allowed by law.
According to records in the case, UNG had been pressuring family members in Seattle about $20,000 he believes is owed to him. Family members had attempted to pay some of the money, but UNG reportedly continued to threaten them if the debt was not paid. In mid-May 2013, UNG arrived in the Seattle area and again began pressuring the family to repay the debt. On June 9, 2013, UNG was observed attempting to contact people at both homes. The fire and the destructive device that failed to ignite were discovered the next day. Cell phone records place UNG in the Seattle area during the time the fire and destructive device were set. Evidence on the destructive device ties him to the scene. UNG returned to the Seattle area in July 2013 and was arrested by Seattle Police and ATF agents. At the time of his arrest UNG had a firearm in his possession and admits that he was armed during the criminal conduct in this case.
The case is being investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Todd Greenberg.Florida Man Sentenced on Money Laundering ChargeRead the Press Release
Forfeits Nearly $10 Million Generated by Illegal Gambling Business
ALBANY, NEW YORK - Philip Gurian, 52, of Boca Raton, Florida, was sentenced today in United States District Court in connection with his previous guilty plea to conspiracy to commit money laundering, announced United States Attorney Richard S. Hartunian, Andrew W. Vale, Special Agent-in-Charge, Federal Bureau of Investigation, Albany Division, and Toni M. Weiracuh, Special Agent-in-Charge, Internal Revenue Service - Criminal Investigation Division, New York Field Office. United States District Judge Mae A. D’Agostino sentenced Gurian to time served, to be followed by supervised release for 3 years, and to pay a $100,000 fine. Gurian had been incarcerated since his arrest on April 10, 2013. As part of his plea agreement and sentence, Gurian also forfeited a total of about $9,974,307.
A co-defendant, Michele Lasso-Barraza, 30, of Parkland, Florida, was sentenced to probation earlier this month in connection with her role in the gambling enterprise and money laundering conspiracy. She forfeited her interest in $8 million and was ordered to pay a $25,000 fine. Lasso-Barraza, a Panamanian citizen, was also deported as a result of her conviction.
Gurian operated a large-scale illegal gambling business using internet websites which allowed bettors to place thousands of wagers from the capital area of New York, Florida, Indiana, California, Texas, and Nevada. Gurian and Lasso-Barraza laundered in excess of $8 million generated from the illegal gambling business by causing wire transfers to offshore accounts in Panama, Andorra, and the Cayman Islands. Some of the offshore accounts were in the names of sham entities and corporations created by Lasso-Barraza on behalf of Gurian.
Gurian was charged as the result of a joint investigation initiated by the Albany County Sheriff’s Office, and joined by the Albany County District Attorney’s Office, the Saratoga District Attorney’s Office, the Federal Bureau of Investigation, the Internal Revenue Service- Criminal Investigation, the Broward County Money Laundering Task Force, and the office of the United States Attorney for the Northern District of New York.
The case was prosecuted by Assistant United States Attorney Robert A. Sharpe.
Derby Credit Union Manager Sentenced Three Years for FraudRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Debra Kinney, 59, of Derby Vermont was sentenced to three years imprisonment yesterday, followed by five years of supervised release. Kinney also was required to pay full restitution, and a forfeiture judgment of $250,000 was entered against her.
Debra Kinney was the manager of the Border Lodge Credit Union in Derby, Vermont. In November 2012, the Federal Bureau of Investigation, along with state and federal bank regulators, searched the credit union and seized the documents and operations of the financial institution based on evidence of widespread fraud and misappropriation of accountholders’ funds. After an ensuing investigation, the manager of the credit union, Kinney, was indicted for misappropriation of credit union funds. Federal credit union regulators permanently shut down and liquidated the assets of the credit union.
Debra Kinney pled guilty to the federal fraud charges in January, 2014. At the sentencing hearing yesterday before Judge William K. Sessions III in Burlington and in court papers, the United States asserted that Kinney had defrauded Border Lodge Credit Union accountholders of over $633,000. Kinney’s acts of embezzlement occurred over a period of years. According to court papers, Kinney would frequently write checks to herself or for her benefit or for that of family members drawn from credit union accountholders without authorization. A subsequent financial investigation determined she removed hundreds of thousands of dollars from multiple accountholders. All told, the investigation revealed improprieties with 33 different accounts.
All of the losses of individual accountholders were insured by the National Credit Union Administration which insures credit union accounts up to $250,000. As part of the liquidation of the credit union, the National Credit Union Administration paid accountholders for losses they suffered. To date, Kinney has not paid any restitution.The case was investigated by the Federal Bureau of Investigation with significant assistance from the National Credit Union Administration and the Vermont Department of Financial Regulation.
Conspirators in Two Android Mobile Device App<br /> Piracy Groups Plead GuiltyRead the Press Release
Members of two different piracy groups engaged in the illegal distribution of copies of copyrighted Android mobile device applications have pleaded guilty for their roles in separate schemes, each designed to distribute more than one million copies of copyrighted apps.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Sally Quillian Yates of the Northern District of Georgia and Special Agent in Charge J. Britt Johnson of the FBI’s Atlanta Field Office made the announcement.
Thomas Pace, 38, of Oregon City, Ore., pleaded guilty today to one count of conspiracy to commit criminal copyright infringement and is scheduled for sentencing on July 9, 2104. According to the information filed on Jan. 24, 2014, Pace and his fellow conspirators identified themselves as the Appbucket Group, and from August 2010 to August 2012, they conspired with other members of the Appbucket Group to reproduce and distribute more than one million copies of copyrighted Android mobile device apps, with a total retail value of over $700,000, through the Appbucket alternative online market without permission from the copyright owners of the apps. Two other defendants charged in the information – Thomas Dye and Appbucket Group leader Nicholas Narbone – pleaded guilty to the same charge in the information on March 10 and March 24, 2014, respectively.
Kody Jon Peterson, 22, of Clermont, Fla., pleaded guilty on April 14, 2014, to one count of conspiracy to commit criminal copyright infringement. According to the information filed on Jan. 23, 2014, Peterson and his fellow conspirators identified themselves as the SnappzMarket Group, and from May 2011 until August 2012, Peterson conspired with other members of the SnappzMarket Group to reproduce and distribute over one million copies of copyrighted Android mobile device apps, with a total retail value of over $1.7 million, through the SnappzMarket alternative online market without permission from the software developers and other copyright owners of the apps. A sentencing date has not yet been scheduled.
The investigation was conducted by the FBI. The prosecution is being handled by Assistant Deputy Chief for Litigation John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia. Significant assistance was provided by the CCIPS Cybercrime Lab and the Criminal Division’s Office of International Affairs.