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15 April 2014
Computer Sciences Corporation to Pay $1.1 Million to Resolve False Claims Act AllegationsRead the Press Release
Baltimore, Maryland – Computer Sciences Corporation, Inc., a defense contractor headquartered in Falls Church, Virginia, has agreed to pay the United States $1.1 million to resolve allegations under the civil False Claims Act that the company falsified qualifications of its employees in order to bill for labor charges at rates higher than allowed under a government contract.
The settlement was announced today by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Robert Craig of the Defense Criminal Investigative Service - Mid-Atlantic Field Office; and Major General David Quantock, Provost Marshal General of the Army and Commanding General of the U.S. Army Criminal Investigation Command.Computer Sciences Corporation designs and operates satellite and wireless network solutions and security systems for government and private sector customers. Prior to January 1, 2008, the U.S. Army Communication Electronics Command (CECOM), which is headquartered at Aberdeen Proving Ground, Maryland, awarded Computer Sciences a contract to provide information technology support to government assets and locations worldwide.
The settlement resolves allegations that Computer Sciences Corporation submitted false resumes for employees to qualify them for higher paying positions, thereby falsely increasing the amount of money for labor charged by Computer Sciences. These claims relate to services rendered between January 16, 2008 and January 15, 2012 under a specific task order of an information technology services contract administered by the Army CECOM.
“When defense contractors can enrich themselves at taxpayers’ expense by falsely representing that they provided expensive services, the government must be vigilant in pursuing fraudulent claims,” said U.S. Attorney Rod J. Rosenstein.The claims settled by this agreement are allegations, and there has been no determination of liability.
U.S. Attorney Rod J. Rosenstein thanked the Defense Contract Audit Agency for their assistance in the investigation. This case was handled by Assistant U.S. Attorney Thomas Barnard.Chelsea Man Charged with Attempting to Issue Fraudulent IdentificationRead the Press Release
BOSTON – A Chelsea man was charged today with conspiring to fraudulently issue identification documents and aggravated identify theft.
Leonel Sanchez, 52, was indicted in connection with a scheme to produce false identification documents. From December 2012 through January 2013, it is alleged that Sanchez bribed an employee of the Massachusetts Registry of Motor Vehicles in connection with a scheme to issue Massachusetts driver’s licenses to individuals who presented fraudulently obtained, but valid, Puerto Rican identification documents in identities other than their own.
This indictment is the most recent development in investigations involving identity theft and public corruption relating to the Massachusetts Registry of Motor Vehicles.
United States Attorney Carmen M. Ortiz; Bruce M. Foucart, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts States Police; David W. Hall, Special Agent in Charge of the U.S. Department of State, Bureau of Diplomatic Security, Boston Field Office; and Cheryl Garcia, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, New York Regional Office, made the announcement today. The case is being prosecuted by Eugenia M. Carris of Ortiz’s Public Corruption Unit.
The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Canyon County Man Sentenced for Aggravated Identity Theft and Possessing Several False ID DocumentsRead the Press Release
BOISE – Jordan Schoo, 34, of both Nampa and Grangeville, Idaho, was sentenced today in United States District Court to 39 months in prison for identity theft by possession of five or more false identification documents and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Schoo to pay $8,703 in restitution, and serve three years of supervised release following his prison term. During the supervised release, Schoo will have substantially limited access to computers and the internet. He was charged in an 11-count indictment filed in federal court in Boise on August 14, 2013.
According to the plea agreement, Schoo admitted that on March 20, 2013, he knowingly possessed nine false and fraudulent Idaho driver’s licenses, each with his own photograph but with the identifying information of actual people, such as names, dates of birth, and driver’s license numbers. Schoo possessed a tenth false identification with a different person’s photograph. According to the plea agreement, Schoo used, and intended to use, the documents to purchase goods on credit from various businesses participating in interstate commerce, such as Best Buy.
Schoo obtained the means of identification of people he impersonated from a number of sources, including that of a former roommate from Colorado. Schoo also used the means of identification taken from his mother’s business. He used the various false identities that he possessed to purchase goods from both local and on-line retailers, including a 60” television and a car audio and security system. Schoo also obtained credit cards in the names of various victims. As part of the scheme, he opened and maintained a mailbox under a false name at a commercial mailbox store.
United States Attorney Wendy Olson stated that, “Today’s sentence sends a firm message that those who victimize others by stealing their identities and causing them financial loss will be punished swiftly and severely,” said Olson. “The United States Attorney’s Office is committed to protecting the financial security of the citizens of Idaho and will pursue identity theft offenders and hold them accountable for the extensive damage that they cause to victims. I commend the cooperative law enforcement efforts that brought this case to a successful conclusion.”
The case was investigated by the United States Postal Inspection Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and Grangeville Police Department.
Buffalo Woman Sentenced for Tax ConspiracyRead the Press Release
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Emma Mills, 38, of Buffalo, N.Y., who was convicted of conspiracy to file false claims with the Internal Revenue Service, was sentenced to 30 months in prison by U.S. District Court Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $35,519.00 to the Internal Revenue Service and $6,976.00 to the NYS Department of Taxation and Finance.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that the defendant conspired with others, including John Tally, to defraud the Internal Revenue Service by creating false and fictitious W-2 forms. The forms were created by obtaining identification information from other persons. The fabricated W-2’s were submitted to the IRS with false tax returns, on which undeserved refunds and tax credits were claimed.
John Tally, 52, of Buffalo, N.Y., who was convicted of fraud and making counterfeit money, was sentenced to 30 months in prison on March 3, 2014.
“On this particular day, Americans everywhere will file their income taxes,” said U.S. Attorney Hochul. “While the vast majority of Americans discharge this obligation honestly, those who would defraud the system should know that our Office will vigorously prosecute any individuals who file false information, in an effort to obtain taxpayer funds to which they are not entitled.”
IRS Criminal Investigation Acting Special Agent-in-Charge Shantelle P. Kitchen said, “Today, as the tax season comes to a close, Americans who file honest and accurate returns can be assured that their government will hold those who do not pay their fair share accountable. The sentencing of Ms. Mills and last month’s sentencing of her co-conspirator, John Tally, are timely examples of the resolve of IRS Criminal Investigation and the United States Attorney’s Office to investigate and prosecute those who defraud our tax system.”
The conviction is the result of an investigation on the part of Special Agents of the Internal Revenue Service, under the direction of Shantelle P. Kitchen, Acting Special Agent in Charge, New York Field Office.Beaumont, Texas, Attorney Pleads Guilty to Tax ViolationRead the Press Release
SHREVEPORT, La. – U.S. Attorney Stephanie A. Finley announced that Craig J. Schexnaider, of Beaumont, Texas, entered a guilty plea Monday before U.S. Magistrate Judge Zack Hawthorn to one count of failing to file an income tax return.
According to evidence presented at the guilty plea, Schexnaider an attorney licensed to practice law in the State of Texas, had gross income in calendar year 2008 of approximately $140,000, an amount in excess of the $3,500 minimum that triggered the requirement to file a federal income tax return. And, even after he requested a six-month extension for the filing of his 2008 federal individual income tax return and the Department of the Treasury approved his request and granted an extension until October 15, 2009, Schexnaider willfully failed to file his 2008 federal individual income return by October 15, 2009 as required by law.
Today’s guilty plea resulted from an Information that was filed in November 2013 charging Schexnaider with four counts of failing to file income tax returns when he had the following in gross income: $73,920 in 2007; $143,797 in 2008; $110,669 in 2009; and $43,740 in 2010. As a result of today’s plea agreement, the government will dismiss the remaining counts after sentencing.
Schexnaider faces one year in prison and a $100,000 fine for one count of failing to file an income tax return. A sentencing date has not been set.This case is the result of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney William Flanagan is prosecuting the case.
Beaumont, Texas, Attorney Pleads Guilty to Tax ViolationRead the Press Release
SHREVEPORT, La. – U.S. Attorney Stephanie A. Finley announced that Craig J. Schexnaider, of Beaumont, Texas, entered a guilty plea Monday before U.S. Magistrate Judge Zack Hawthorn to one count of failing to file an income tax return.
According to evidence presented at the guilty plea, Schexnaider an attorney licensed to practice law in the State of Texas, had gross income in calendar year 2008 of approximately $140,000, an amount in excess of the $3,500 minimum that triggered the requirement to file a federal income tax return. And, even after he requested a six-month extension for the filing of his 2008 federal individual income tax return and the Department of the Treasury approved his request and granted an extension until October 15, 2009, Schexnaider willfully failed to file his 2008 federal individual income return by October 15, 2009 as required by law.
Today’s guilty plea resulted from an Information that was filed in November 2013 charging Schexnaider with four counts of failing to file income tax returns when he had the following in gross income: $73,920 in 2007; $143,797 in 2008; $110,669 in 2009; and $43,740 in 2010. As a result of today’s plea agreement, the government will dismiss the remaining counts after sentencing.
Schexnaider faces one year in prison and a $100,000 fine for one count of failing to file an income tax return. A sentencing date has not been set.This case is the result of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney William Flanagan is prosecuting the case.
Austin Area Man Sentenced to Federal Prison for A String of RobberiesRead the Press Release
In Austin today, 52-year-old Randall David Reed of Dripping Springs, TX, was sentenced to 15 years in federal prison for six robberies, including five banks and one grocery store, and brandishing a firearm during and in relation to a crime of violence announced United States Attorney Robert Pitman and Acting FBI Special Agent in Charge Aaron C. Rouse.
In addition to the prison term, United States District Judge Lee Yeakel ordered that Reed pay restitution totaling $32,430 and be placed under supervised release for a period of three years after completing his prison term.
On February 5, 2014, Reed pleaded guilty to five counts of bank robbery, one count of violating the Hobbs Act (robbery which affects interstate commerce), and the firearm charge. According to court records, Reed admitted that he committed the following robberies:
- February 28, 2013 -- Randalls grocery store (2000 block of West Ben White Blvd. in Austin) – $3,000
- March 25, 2013 – Pioneer Bank (100 block of Wonder World Dr. in San Marcos) – $8,312
- May 3, 2013 – Prosperity Bank (12000 block of Research Blvd. in Austin) – $2,200
- May 21, 2013 – Northstar Bank (1500 block of West 35th St. in Austin) – $3,552
- July 3, 2013 – Broadway Bank (13400 block of US Hwy 281 in San Antonio) – $1,500
- July 26, 2013 – Benchmark Bank (1500 block of West 35th St. in Austin) -- $13,866
Furthermore, Reed admitted to carrying a handgun during all of the robberies and even brandishing a handgun during the July 26, 2013, robbery.
This case was investigated by agents with the Federal Bureau of Investigation and the police departments from Austin, San Marcos and San Antonio. Assistant United States Attorney Matthew B. Devlin prosecuted this case on behalf of the Government.
April 15Th Brings Indictment for Six Women in Identity Theft and Tax Fraud SchemeRead the Press Release
Memphis, TN – Six Memphis women were charged today with a total of 41 counts of fraud related to filing false income tax returns and identity theft, announced U.S. Attorney Edward L. Stanton III and Christopher A. Henry, Special Agent in Charge, Nashville Field Office, IRS-Criminal Investigations.
Melissa Harris, age 35; Erin Crutcher, age 27; Angela Jacocks, age 40; Breunca Sutton, age 28; Jennifer Freeman, age 38; and Vivian Sholar, age 34; were indicted for conspiracy to steal government funds, stealing government funds through the filing of false income tax returns, and aggravated identity theft.
According to the indictment, between August 6, 2010 and July 27, 2011, the women unlawfully obtained personal identifying information of victims, including high school students, and used this information to electronically file false federal income tax returns claiming refund amounts. They filed over 800 false returns, and directed over $1,300,000 of the generated refunds into the bank accounts of Crutcher, Jacocks, Sutton, Freeman and Sholar. Each of the conspirators received part of the refunds for their personal benefit and use.
Harris is charged with one count of conspiracy, 20 counts of theft of government funds and 20 counts of aggravated identity theft.
Crutcher, Jacocks, Sutton, Freeman, and Sholar are each charged with one count of conspiracy, four counts of theft of government funds and four counts of aggravated identity theft.
The conspiracy charge carries a penalty of up to five years in prison. The theft of government funds charges carries a penalty of up to 10 years in prison. The aggravated identity theft charges carry a mandatory two year sentence to be served consecutively.
“The facts as outlined in the indictment insult the tens of millions of honest citizens who play by the rules and file their taxes in a timely and accurate manner,” said U.S. Attorney Stanton. “Anyone who participates in such a scheme should understand there is be a price to be paid and that our office will seek to collect in full.”
“Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law. IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney’s Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and show blatant disregard to the harm caused to the victims of their schemes,” said Special Agent in Charge Henry.
This case was investigated by the United States Secret Service and the Internal Revenue Service-Criminal Investigative Division. Assistant United States Attorney Stephen Hall is prosecuting the case for the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Abilene Man Pleads Guilty to Federal Child Pornography ChargeRead the Press Release
ABILENE, Texas — Steven Edward Robb, 59, of Abilene, Texas, appeared today before U.S. Magistrate Judge E. Scott Frost, in federal court in Abilene, and pleaded guilty to one count of receipt of child pornography. Robb, who is on bond, faces a maximum statutory penalty of not less than five years or more than 20 years in federal prison, a $250,000 fine and a lifetime of supervised release. A sentencing date was not set. U.S. Attorney Sarah R. Saldaña of the Northern District of Texas made the announcement today.
According to documents filed in the case, in July 2013, Robb knowingly received two video files depicting minor females engaging in sexually explicit conduct.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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 sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Abilene Police Department are investigating. Assistant U.S. Attorney Steven M. Sucsy of the U.S. Attorney’s Office in Lubbock, Texas, is in charge of the prosecution.
14 April 2014
Worcester Man Pleads Guilty to Stealing Government MoneyRead the Press Release
BOSTON - A Worcester man pleaded guilty today in U.S. District Court in Worcester today to participating in a scheme to steal more than $110,000 from the federal government.
Marvin Lubin, 22, pleaded guilty before U.S. District Court Judge Timothy S. Hillman to theft of public money. In March 2014, Lubin was charged in a felony information. Sentencing is scheduled for July 7, 2014.
In early 2013, Lubin and a co-conspirator, Sniders Jean-Jacques, recruited several individuals to work as couriers in a scheme to steal and launder Social Security and IRS tax refund payments. Lubin hosted a meeting in his home in Worcester, which included Jean-Jacques and several of the couriers. At the direction of Lubin and Jean-Jacques, the couriers opened bank accounts in Massachusetts in the names of fake businesses. On various dates in 2013, illegally obtained Social Security benefits and IRS refunds were directly deposited into the accounts. At the direction of Lubin or Jean-Jacques, the couriers immediately withdrew the money in cash, and then delivered the cash as instructed by Lubin or Jean-Jacques. In some instances, couriers brought cash directly to Lubin. Jean-Jacques or Lubin would typically authorize the couriers to retain a portion of the stolen money as payment for their courier services.
On Oct. 10, 2013, during the execution of a search warrant of Lubin’s home, law enforcement agents recovered, among other things, a debit card associated with one of the bank accounts opened in the name of a fake business, and a list of 375 names, dates of birth, and Social Security numbers. On the same date, law enforcement agents interviewed Lubin, who admitted to his role in this scheme. Jean-Jacques was arrested on March 18, 2014.
The investigation so far has determined that as part of this scheme, Social Security payments totaling $11,689 were illegally obtained under the identities of 14 victims, and IRS payments totaling $98,610 were illegally obtained under the identities of 20 victims.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of the U.S. Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Stephen Marks, Acting Special Agent in Charge of the U.S. Secret Service; Phillip Coyne, Special Agent in Charge of U.S. Health and Human Services, Office of the Inspector General, Office of Investigations; and Chief Gary J. Gemme of the Worcester Police, made the announcement today. The case is being prosecuted by Timothy Landry of Ortiz’s Major Crimes Unit.
West Plains Man Pleads Guilty to Receiving, Distributing Child PornRead the Press Release
Project Safe Childhood
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a West Plains, Mo., man pleaded guilty in federal court today to receiving and distributing child pornography over the Internet.
James A. Harrison, 53, of West Plains, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a Feb. 26, 2014, federal indictment.
By pleading guilty today, Harrison admitted that he downloaded child pornography from Web sites, and that he received and distributed child pornography through peer-to-peer file-sharing networks.
A Missouri State Highway Patrol trooper was conducting an undercover operation on Jan. 28, 2013, when he identified Harrison’s computer as sharing images of child pornography over the Internet through a peer-to-peer file-sharing network. The next day, the trooper downloaded a video of child pornography from Harrison’s computer. On Feb. 26, 2013, Harrison’s computer was still connected to the file-sharing network and had 10 files available for sharing that were known child pornography files. Law enforcement officers executed a search warrant at Harrison’s residence and seized a laptop computer, a desktop computer, a hard drive and various digital media storage devices.
Investigators examined Harrison’s computers and digital media storage devices and found 474 child pornography videos and 560 images of child pornography (that ranged in age from three years old to 13-14 years old).
Under federal statutes, Harrison is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, plus a fine up to $250,000. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Abram McGull, II. It was investigated by the Missouri State Highway Patrol, the Joplin, Mo., Police Department, the Cassville, Mo., Police Department and the Southwest Missouri Cyber Crime Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."West Branch Man Pleads Guilty to Distributing Child PornographyRead the Press Release
A man who distributed child pornography pled guilty today in federal court in Cedar Rapids.
Brady Verlo, age 22, from West Branch, Iowa, was convicted of one count of distribution of child pornography.
At the plea hearing, Verlo admitted that, between June 2013 and December 2013, he distributed child pornography. In a plea agreement, Verlo admitted that he distributed depictions of child pornography that previously had been transported to him through the Internet and cell phone messaging services. In the plea agreement, Verlo also admitted that he possessed over 20,000 images and 900 videos of child pornography.
Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. Verlo was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Verlo faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following his imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by Homeland Security Investigations, the Iowa City Police Department, and the West Branch Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 14-9.
Virginia Man Charged with Misuse of Government Credit CardRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistMARTINSBURG, WEST VIRGINIA – A former supervisor with the U.S. Department of Homeland Security has been charged with misusing his government-issued credit card at a West Virginia casino.
United States Attorney William J. Ihlenfeld, II, announced that GENE PROTOGIANNIS, 55 years old of Lovettsville, Virginia, was indicted on forty-five counts of wire fraud. The acts are alleged to have occurred in 2013 when PROTOGIANNIS used his official government credit card to obtain cash advances at the Hollywood Casino in Charles Town, West Virginia. The total amount of cash alleged to have been withdrawn by PROTOGIANNIS at the casino was $115,853.55.
PROTOGIANNIS, who will appear in Federal Court in Martinsburg on April 16, 2014, at 9:30 for his initial appearance, faces up to twenty years in prison along with a fine of up to $250,000 on each count. The actual sentence imposed will be based upon the Federal Sentencing Guidelines and the criminal history of the PROTOGIANNIS, if any. An indictment is only an accusation and the defendant is presumed innocent until and unless proven guilty.
PROTOGIANNIS was the Acting Director of the Tactical Operations Division for the U.S. Customs and Border Protection, a division of the Department of Homeland Security, at the time that these crimes allegedly occurred.
The case will be prosecuted by Assistant United States Attorney Paul T. Camilletti and was investigated by the West Virginia State Police.
U.S. Attorney Ihlenfeld urges anyone with information regarding public corruption in their community to call the West Virginia Public Corruption Hotline at 855-WVA-FEDS (1-855-982-3337), or to send an email to [email protected].
Utah Man Charged with Federal Hate Crime for Threatening Interracial FamilyRead the Press Release
The Department of Justice announced today that an information was filed charging Robert Keller, 70, with interfering with the housing rights of three members of an interracial family because of the family members’ races and because the family members were living in Hurricane, Utah.
Keller has been charged with two counts of criminal interference with a right to fair housing. More specifically, the information alleges that Keller wrote a note to two Caucasian family members of an interracial family threatening to kill them if they did not make their African-American family member leave their home and the community. The first count alleges that Keller’s threats interfered with the housing rights of the Caucasian residents to associate in their home with their African-American family member, and the second count alleges that Keller’s threats interfered with the African-American resident’s right to occupy the home.
If convicted, Keller faces a statutory maximum penalty of one year in prison on each count.
This case is being investigated by the Salt Lake City Division of the FBI in cooperation with the Hurricane City Police Department. It is being prosecuted by Trial Attorney Saeed Mody of the Civil Rights Division and Assistant U.S. Attorney Carlos Esqueda for the District of Utah.
An information is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Utah Man Charged with Federal Hate Crime for Threatening Interracial FamilyRead the Press Release
SALT LAKE CITY - The U.S. Attorney’s Office in Utah and the Department of Justice announced Monday that an information has been filed charging Robert Keller, 70, with interfering with the housing rights of three members of an interracial family because of the family members’ races and because the family members were living in Hurricane, Utah.
Keller has been charged with two misdemeanor counts of criminal interference with a right to fair housing. More specifically, the information alleges that Keller wrote a note to two Caucasian family members of an interracial family threatening to kill them if they did not make their African-American family member leave their home and the community. The first count alleges that Keller’s threats interfered with the housing rights of the Caucasian residents to associate in their home with their African-American family member, and the second count alleges that Keller’s threats interfered with the African-American resident’s right to occupy the home.
A summons will be issued to Keller to appear in federal court. If convicted, Keller faces a statutory maximum penalty of one year in prison on each count.
This case is being investigated by the Salt Lake City Division of the FBI in cooperation with the Hurricane City Police Department. It is being prosecuted by Trial Attorney Saeed Mody of the Civil Rights Division and Assistant U.S. Attorney Carlos Esqueda for the District of Utah.
An information is merely an accusation, and the defendant is presumed innocent unless proven guilty.
U.S. Broker-Dealer Ceo and Managing DirectorCharged in Manhattan Federal CourtFor Massive International Bribery SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, David O’Neil, the Acting Assistant Attorney General for the Criminal Division of the United States Department of Justice, and George Venizelos, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrests and indictment of BENITO CHINEA and JOSEPH DEMENESES, the former Chief Executive Officer and former Managing Director, respectively, of a United States broker-dealer (the “Broker-Dealer”), on felony charges arising from a conspiracy to pay bribes to Maria De Los Angeles Gonzalez De Hernandez (“Gonzalez”), who was a senior official in Venezuela’s state economic development bank, Banco de Desarrollo Económico y Social de Venezuela (“BANDES”). CHINEA and DEMENESES, working with others, arranged the bribe payments to Gonzalez in exchange for her directing BANDES’s financial trading business to the Broker-Dealer. DEMENESES was also charged with participating in a conspiracy to obstruct justice by concealing facts about the scheme from the U.S. Securities and Exchange Commission (“SEC”) during a periodic examination of the Broker-Dealer.
CHINEA, 47, was arrested today in Manalapan, New Jersey, where he resides, and DEMENESES, 44, was arrested today in Fairfield, Connecticut, where he resides. Both defendants were presented today in Manhattan federal court before Judge Denise L. Cote.
Manhattan U.S. Attorney Preet Bharara said: “These two defendants, senior executives at a U.S. brokerage firm, are the fifth and sixth people to be charged in an alleged conspiracy to corrupt the trading business of a state-run economic development bank of Venezuela. They are alleged to have bribed a willing officer at the bank to steer its overseas trading business to the defendants’ brokerage firm, reaping millions for these defendants and their partners in crime. This Office will not tolerate the kind of outright bribery and concealment that characterized this scheme.”
Acting Assistant Attorney General O’Neil said: “These senior Wall Street executives are accused of paying six-figure bribes to an official in Venezuela to secure foreign business for their firm. Today’s charges show once again that we will aggressively pursue individual executives, all the way up the corporate ladder, when they try to bribe their way ahead of the competition.”
FBI Assistant Director-in-Charge George Venizelos said: “As alleged in the indictment, Chinea and Demeneses bribed Gonzalez to secure bank Bandes's financial trading business. Demeneses compounded the Broker-Dealer's illegal activities by conspiring to obstruct an investigation by regulators. The arrests today of Chinea and Demeneses should be a reminder to all those in the business community that engaging in bribery schemes to secure business and make a profit is illegal. Together with our law enforcement partners, the FBI will continue to investigate bribery and fraud at all levels.”
According to the allegations in the Indictment unsealed today, and other documents previously filed in Manhattan federal court:
Background on the Broker-Dealer and BANDES
At all times relevant to the charges, CHINEA was the chief executive officer and DEMENESES was a managing director in the Broker Dealer, which was headquartered in New York, with offices in Miami, Florida. In 2008, the Broker-Dealer established a group called the Global Markets Group, which included DEMENESES, Ernesto Lujan (“Lujan”), and Tomas Alberto Clarke Bethancourt (“Clarke”), and which offered fixed income trading services to institutional clients. One of the Broker-Dealer’s clients was BANDES, which operated under the direction of the Venezuelan Ministry of Finance. The Venezuelan government had a majority ownership interest in BANDES and provided it with substantial funding. Gonzalez was an official at BANDES and oversaw the development bank’s overseas trading activity. At her direction, BANDES conducted substantial trading through the Broker-Dealer. Most of the trades executed by the Broker-Dealer on behalf of BANDES involved fixed income investments for which the Broker-Dealer charged BANDES a mark-up on purchases and a mark-down on sales.
The Bribery Scheme
From 2008 through 2012, CHINEA and DEMENESES, along with Lujan, Clarke, Jose Alejandro Hurtado (“Hurtado”), and Gonzalez, participated in a bribery scheme in which Gonzalez directed trading business she controlled at BANDES to the Broker-Dealer, and in return, agents and employees of the Broker-Dealer, including CHINEA and DEMENESES, split the revenue the Broker-Dealer generated from this trading business with Gonzalez. During this time period, the Broker-Dealer generated over $60 million in mark-ups and mark-downs from trades with BANDES. Agents and employees of the Broker-Dealer, including CHINEA, DEMENESES, Lujan, Clarke and Hurtado, devised a split with Gonzalez of the commissions paid by BANDES to the Broker-Dealer.
To further conceal the scheme, the kickbacks to Gonzalez were often paid using intermediary corporations and offshore accounts that she held in Switzerland, among other places. For example, DEMENESES, Lujan and Clarke used an account in Switzerland to transfer at least $1.5 million to an account Gonzalez controlled in Switzerland. In addition to Gonzalez receiving the bribe payments, CHINEA and DEMENESES, as well as other coconspirators, received millions in proceeds from the scheme.
The Conspirators’ Efforts to Obstruct the SEC Examination
Finally, beginning in or about November 2010, the SEC commenced a periodic examination of the Broker-Dealer, and from November 2010 through March 2011, the SEC’s exam staff made several visits to the Broker-Dealer’s offices in New York, New York. In or about early 2011, DEMENESES discussed with others that the SEC was examining the Broker-Dealer’s relationship with BANDES and that the SEC was asking questions regarding certain emails and other information that its exam staff had discovered. DEMENESES, Lujan, Clarke, and Hurtado agreed that they would take steps to obstruct justice by concealing the true facts of the Broker-Dealer’s relationship with BANDES, including by deleting emails.
Previously, on May 3, 2013, Gonzalez, along with two employees of the Broker-Dealer, Clarke and Hurtado, were arrested on charges relating to this bribery scheme. On June 12, 2013, a managing director of the Broker-Dealer, Lujan, was arrested on related charges as well. Each of these four defendants has since entered guilty pleas pursuant to cooperation agreements.
A chart containing the charges and maximum penalties for CHINEA and DEMENESES is attached below. 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.
Mr. Bharara praised DOJ’s Criminal Division and the FBI for their work in the investigation. He also thanked the SEC for its assistance in this case and noted that the investigation is continuing. In a separate action, the SEC announced civil charges against CHINEA and DEMENESES.
This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a Co-Chair of the Securities and Commodities Fraud Working Group. The task force was established 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 nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Harry A. Chernoff and Jason H. Cowley, and Fraud Section Deputy Chief James Koukios and Trial Attorney Maria Gonzalez Calvet are in charge of the prosecution. Assistant United States Attorney Carolina Fornos is responsible for the forfeiture aspects of the case.
Additional information about the Justice Department’s FCPA enforcement efforts can be
found at www.justice.gov/criminal/fraud/fcpa.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Click here to view chart(s)
U.S. v. Chinea & Demeneses Indictment
U.S. Attorney's Office Reminds Public to be Aware of Tax Identity Theft during Tax SeasonRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. –United States Attorney Stephanie A. Finley joins the IRS and other federal agencies to raise awareness about a growing problem of identity theft as it relates to tax refund fraud. As the federal tax filing deadline approaches, extensions are granted and the state tax season continues. The Western District of Louisiana U.S. Attorney’s Office has also prosecuted individuals for related tax crimes.
Nationwide tax ID theft fraud is estimated to cost the U.S. Treasury more than $5 billion annually. The IRS has made tax identity theft a top priority and has hired new staff to explore new technologies and adopted new procedures to fight it. In fiscal year 2013, the IRS initiated 1,492 identity theft related criminal investigations, an increase of 66 percent over investigations initiated in fiscal year (FY) 2012. Indictments and sentencing doubled in FY 2013 and the average prison term was more than three years.
Stolen Identity Refund Fraud (SIRF) is reported to have affected more than 550,000 taxpayers from 2008 through May of 2012. In FY 2013, the Department of Justice filed more than 580 indictments or informations charging more than 880 defendants with SIRF-related crimes. In its efforts to prosecute fraudulent tax return preparers and promoters nationwide, the Tax Division has obtained court orders to stop more than 60 preparers and promoters doing business all over the United States.
Tax identity theft normally occurs when someone files a tax return using other people’s personal information, like a Social Security number, to get an income tax refund from the IRS. It also can happen when someone uses a Social Security number to get a job or claims someone else’s child as a dependent on a tax return. Victims usually do not realize that their identity has been stolen until they do their taxes. The IRS will contact the victim saying that more than one tax return was filed using their Social Security number, or that IRS records show they received wages from an employer they do not know.
In an effort to combat law breakers in the Western District of Louisiana, which represents 42 of Louisiana’s 64 parishes, criminal charges have been filed against those who have filed fraudulent tax documents and those who have stolen other people’s identities.
Tax related cases prosecuted in the Western District since April 15, 2013 are:Roderick Caldwell, 33, of Shreveport, pleaded guilty on September 26, 2013, to theft of income tax refunds. Caldwell deposited the fraudulently obtained refunds into accounts he held with Suntrust and Capital One Bank. On January 8, 2014, he was ordered by U.S. District Judge Donald E. Walter to pay back the $51,000.
Lashanda E. Harris, 38, of Natchitoches, La., pleaded guilty on October 29, 2013. She was a tax preparer in Natchitoches and assisted customers in preparing false tax returns. As part of the scheme, Harris received “kickbacks” from the customers. She was sentenced on January 31, 2014, by U.S. District Judge Dee D. Drell, to 18 months in prison and was ordered to pay $101,795 in restitution.
Francis C. Broussard 54, of West Monroe, La., pleaded guilty April 19, 2013. He filed personal tax returns in 2009 for years 2005 to 2008 using documents containing false information in an attempt to receive a total of 9.7 million in refunds to which he was not entitled. Broussard, who is a lawyer, did not receive the requested refunds. He was sentenced February 3, 2014 by U.S. District Court Judge Robert G. James to 28 months in prison and three years of supervised release.
Leo Cortez Vinson, 40, of Shreveport, pleaded guilty September 1, 2011. In early 2009, Vinson prepared 22 Form 1040 tax returns for the 2008 tax year containing false information and claiming $91,141 in refunds. The IRS issued $79,396 of these refunds caused by the filing of the fraudulent tax returns. On average Vinson received between $1,000 and $1,500 per tax return. Vinson recruited inmates from different prisons to supply Social Security numbers for the false returns and paid them $100 for their information. He was sentenced on November 14, 2013 by U.S. District Court Judge Tom Stagg to 36 months in prison and one year of supervised release.
William Loftin Jr., 71, of Bossier City, La., pleaded guilty July 2, 2013. Loftin filed taxes on April 14, 2008 for the 2007 calendar year U.S. Individual Income Taxes due. Under Section C of the form 1040, Lofton reported that for the gross receipts and sales that two of his businesses, Executive Consultants and EDGEAR LLC, made $2.4 million in 2007. Loftin admitted the numbers were false. The actual amount was $4.6 million, which is a difference of $2.2 million. He was sentenced on November 14, 2013 by U.S. District Judge Tom Stagg to one year of probation and to pay $50,000.
Larry Bruce, 61, Leesville, La., pleaded guilty January 29, 2013. Bruce admitted to being responsible for not paying payroll taxes owed to the Internal Revenue Service while working as the financial officer for EMI in Leesville from 2003 to 2007. Bruce was sentenced on May 13, 2013 by U.S. District Judge Richard T. Haik to five years in prison and three years of supervised release. He was also ordered to pay restitution in the amount of $294,070.98 to the IRS.
Gary Scott, 61, of Lafayette, pleaded guilty December 18, 2012. Scott earned more than $2.4 million in gross receipts between 2004 and 2009, and failed to file timely tax returns for those years. In an attempt to avoid paying his tax liability and evade assessment of future income taxes, Scott intentionally hid assets and went to great lengths to remove those assets out of his name. He was sentenced on April 16, 2013 by U.S. District Judge Elizabeth E. Foote to two years in prison, three years of supervised release and ordered to pay $362,961.65 in restitution to the IRS in unpaid taxes.
There are a number of ways for tax identity thieves to get personal information, to include:
- going through trash or stealing mail from a home or car;
- sending phony emails that look like they’re from the IRS asking for personal information;
- misusing clients’ information or passing it along to identity thieves by employees of businesses.
Tax payers can take the following precautions to safeguard their identity:
sign tax forms or ensure that they are transmitted electronically;- do not carry your Social Security number in your purse or wallet; and
- do not respond to threats received over the phone, through emails or by way of texts from those portraying to be IRS employees.
“I want to thank all of the agencies who have worked on these cases,” Finley stated. “Thanks also to private citizens for their efforts in reporting tax related crimes and guarding their tax information from criminals. Through the combined efforts of the public and agencies on a federal, state and local level, this type of fraud can be shut down and justice served upon those who abuse the tax laws and take advantage of law abiding citizens and their customers who place their trust in them.”
“Seeking out and prosecuting individuals who commit violations of the tax laws is the main focus of the work we do at IRS Criminal Investigation, “said Gabriel Grchan, Special Agent in Charge, IRS-CI, New Orleans Field Office. “We greatly appreciate the U.S. Attorney Stephanie Finley for her commitment to the prosecution of these cases. It is my hope that the legal actions undertaken in this district will further assure the taxpaying citizens of our country that IRS – CI is fully engaged in the war against those who attempt to steal from the U.S. Treasury.”
To protect yourself this tax season, it is important to know the ways that the IRS will and will not contact you if they have concerns. If you receive a letter from the IRS, contact the IRS Identity Protection Specialized Unit at 1-800-908-4490. The IRS does not initiate collection action by way of phone. For additional tips on how to protect your identity, or if you think that you are a victim of fraud, go to www.irs.gov.
For those who have had their identity stolen and used for fraud, the IRS will issue a special PIN to use for filing taxes. Information on the PIN program is available at www.irs.gov/uac/Newsroom/IRS-Combats-Identity-Theft-and-Refund-Fraud-on-Many-Fronts-2014. Please visit the FTC at ftc.gov/idtheft and the IRS at irs.gov/identitytheft for more information about tax identity theft.
Two Brothers Sentenced for Drug Dealing in Annapolis and BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ernst Harmon, age 37, of Annapolis, Maryland, today to 198 months in prison, and his brother Dontaye Harmon, age 40, of Baltimore, Maryland to 125 months in prison, both followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine base. Judge Hollander also ordered Harmon to forfeit a 2004 Land Rover truck, a 1999 Dodge Caravan and $4,050 in cash.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge William P. McMullan of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Annapolis Police Chief Michael A. Pristoop; Anne Arundel County Police Chief Kevin Davis; Commissioner Anthony W. Batts of the Baltimore Police Department; U.S. Marshal Johnny Hughes; and Anne Arundel County State’s Attorney Anne Colt Leitess.
"We are proud of the excellent work and partnerships that resulted in removing two violent offenders from our streets," said Annapolis Police Chief Michael Pristoop. "This is significant for public safety in Annapolis."
According to their plea agreements, from at least July 2012 until June 2013, Ernst and Dontaye Harmon conspired with their brother, Donwand Harmon, Damian Brown and others to distribute cocaine base to a number of individuals in the Baltimore and Anne Arundel County, Maryland areas.
On July 31, 2012, Baltimore City Police officers stopped Ernst Harmon for a traffic violation. The police seized a hollowed-out cigar filled with raw marijuana and $4,050 from Ernst, and 140 grams of cocaine base and additional raw marijuana from a hidden compartment in his vehicle.
Dontaye Harmon worked with Ernst Harmon to run a drug shop operating out of the projects located at 920 President Street in Annapolis. Law enforcement saw Ernst and Dontaye outside the drug shop regularly making hand-to-hand transactions with customers. Pursuant to a court authorized wiretap on Ernst’s cell phone, law enforcement overheard Ernst arranging sales of cocaine base directly with customers, or instructing customers to deal with Dontaye. Ernst was also overheard calling Dontaye on multiple occasions to warn him that the police were coming, or were outside the drug shop. On two occasions in November 2012 and February 2013, investigators used an individual to purchase a total of 36.9 grams of cocaine base directly from Ernst and Dontaye at the drug shop. On a third occasion in January 2013, the individual made a controlled purchase of 27.2 grams of cocaine base from Ernst at the drug shop.
It was reasonably foreseeable to Ernst and Dontaye that the conspiracy distributed at least 280 grams of cocaine base.
Ernest Harmon also faces attempted murder charges in Anne Arundel County Circuit Court for the September 9, 2012 shooting of two individuals in Annapolis.
Donwand Cuppatino Harmon, age 37, of Annapolis, Maryland, previously admitted that he was responsible for distributing at least a kilogram of heroin during the conspiracy. Judge Hollander sentenced Donwand Harmon on February 7, 2014 to 210 months in prison, and ordered him to forfeit $27,895 in cash, a 2010 Porsche Panamera, a 2008 Mercedes Benz CL550, and jewelry, including a Breitling wrist watch with a diamond face and band.
Damian Brown also pleaded guilty to the drug conspiracy on February 3, 2014, and is scheduled to be sentenced on June 17, 2014 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, Annapolis Police Department, Anne Arundel County Police Department, Baltimore Police Department, U.S. Marshals Service and Anne Arundel County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark and Scott Lemmon who prosecuted this Organized Crime Drug Enforcement Task Force case.
Tulare County Man Sentenced to 17.5 Years in Prison for Marijuana Cultivation CrimesRead the Press Release
FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Saul Antonio Morales, 49, of Alpaugh, today to 17 and a half years in prison for drug offenses relating to his involvement in a large marijuana cultivation operation that he maintained on his property, U.S. Attorney Benjamin B. Wagner announced.
On October 31, 2013, a federal jury found Morales guilty of conspiring to manufacture, distribute and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and maintaining drug-involved premises.
The government’s evidence at trial established that Morales, who was unemployed, was the owner of two 20-acre parcels and one residential property in the rural community of Alpaugh. In May 2012, during the execution of a search warrant at one of the parcels where Morales resided, members of the Sheriff’s Tactical Enforcement Personnel (STEP) unit of the Tulare County Sheriff’s Office located 4,011 marijuana plants, a processing room, and three firearms. The officers seized another 198 marijuana plants at another parcel and identified Morales’s stash house at the third property. According to court documents, Morales and his family members were involved in the distribution of marijuana to the state of Washington.
In sentencing Morales, Judge O’Neill enhanced Morales’ sentence based on his leadership role and possession of firearms, noting, “guns change everything.” Following the completion of his prison term, Morales will be placed on supervised release for a total term of five years, or will be subject to deportation to his native El Salvador.
Seven other people were prosecuted in this case, including Morales’s wife, Juliana Garcia Torres, 55, and son, Gerardo Alonso Morales, 23. They were both sentenced to three years and one month in prison. Bonifacio Cano Gutierrez, 20, of Colima, Mexico, was sentenced on January 6, 2014, to two years and six months in prison. He is subject to deportation to Mexico upon completion of his prison sentence. The remaining six co-defendants were sentenced to between 12 to 30 months in prison.
This case was the product of an investigation by the U.S. Drug Enforcement Administration and Tulare County Sheriff’s Office. Assistant United States Attorneys Karen Escobar and Christopher Baker prosecuted the case.
Three Shiprock Residents Sentenced to Federal Prison for Sexually Abusing a Navajo ChildRead the Press Release
ALBUQUERQUE – Three residents of Shiprock, N.M., were sentenced in federal court on Friday, April 11, 2014, for their convictions on child sexual abuse charges. Herbert Ben, Sr., 63, a member of the Navajo Nation, and Bruce Hamilton, 77, a non-Indian, each was sentenced to 48 months in prison, while Rosabelle Ben, 58, a member of the Jicarilla Apache Nation, was sentenced to 40 months in federal prison. Each will be on supervised release for five years and be required to register as a sex offender after completing his or her prison sentence.
The three defendants were arrested in May 2012, based on a criminal complaint alleging child sex abuse offenses. They subsequently were indicted and charged with sexual abuse of a child between the age of 12 and 16 years, and aiding and abetting the sexual abuse of a child, at a location within the Navajo Indian Reservation.
Herbert Ben, Sr., pled guilty on July 31, 2013, to sexual abuse of a minor and admitted sexually abusing the victim on a day between Aug. 2010 and Dec. 2011. On Aug. 19, 2013, Hamilton pled guilty to sexual abuse of a minor and admitted sexually abusing a Navajo child between the age of 12 and 15 years on a date between Aug. 2010 and Dec. 2011. Rosabelle Ben entered a guilty plea on Oct. 29, 2014, to being an accessory to sexual abuse of a minor and admitted making the victim available to Hamilton who sexually abused the victim.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. It was prosecuted by Assistant U.S. Attorneys Jacob A. Wishard and Novaline D. Wilson 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/.
Three Plead Guilty to String of Sawed-Off Shotgun Robberies in the City of RichmondRead the Press Release
RICHMOND, Va. – Alexander Edward Bell, 28, of Richmond, Va., pleaded guilty today to Interference with Commerce by Robbery and Using, Carrying, and Brandishing a Short-Barreled Shotgun During and In Relation to a Felony Crime of Violence. Bell’s coconspirators, Cevin Maurice Johnson, 26, of Richmond, Va., and Jaron Alphonz Minnicks, 21, of Richmond, Va., pleaded guilty to the same charges last week.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Charles E. Smith, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; and Richmond Police Chief Ray J. Tarasovic made the announcement after the pleas were accepted by United States District Judge Henry E. Hudson.
Bell, Johnson and Minnicks were indicted on January 21, 2014, by a federal grand jury on charges of Interference with Commerce by Robbery and Using, Carrying and Brandishing a Firearm During and In Relation to a Felony Crime of Violence. All three men face a maximum penalty of 20 years’ imprisonment on the robbery charge and life imprisonment on the firearm charge when they are sentenced in July 2014. Bell and Minnicks agreed to recommend to the Court a sentence of 27 years of active incarceration. Johnson, who served primarily as a getaway driver, made no agreement regarding sentencing.
In a statement of facts filed with the plea agreement, Bell admitted that between October 20, 2013 and December 22, 2013, he committed the armed robberies of the Shop and Go on Mechanicsville Turnpike, Bruce’s Supermarket on Commerce Road, the Night & Day Mart located on Q Street, the One Stop Food Market located on Meadowbridge Avenue, the Clay Street Market located on N. 30th Street, the D.C. Food Market on Brookland Park Boulevard, and the Corner Express Mart on North Avenue, all located in the City of Richmond. Minnicks admitted to committing all but the Corner Express Mart robbery. Johnson admitted to committing all but the Shop and Go and Bruce’s Supermarket robberies. During each of these robberies, one or more of the men would enter the store brandishing a sawed-off shotgun and demand money, while another man would wait outside and serve as a getaway driver. Approximately $13,000 total was taken during the seven robberies.
This case was investigated by the ATF and the City of Richmond Police Department. Assistant United States Attorney Olivia L. Norman is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
Three Charged with Conspiracy to Commit Credit Card Fraud in Jackson AreaRead the Press Release
SACRAMENTO, Calif. — An indictment was unsealed today charging three women with conspiracy to commit access device fraud and access device fraud, United States Attorney Benjamin B. Wagner announced.
According to the indictment, in October 2013, Amanda Nicole Nicoletti, 28, of Clovis; Brittney Janet Booth, 27, of Fresno; and Bobbi Jo Heiss, 27, of Oakhurst, collected more than 165 credit card numbers, 25 California driver’s licenses, and 25 social security numbers in the names of other individuals. The defendants then used that information to make numerous purchases in the Jackson area of jewelry, shoes, cigarettes, and other items using counterfeit credit cards that had been encoded with the stolen credit card numbers. Co-defendant Nicoletti is additionally charged with aggravated identity theft.
This case is the product of an investigation by the United States Secret Service, United States Postal Inspection Service, Jackson Police Department, and Angels Camp Police Department. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
Heiss was arrested on April 11, 2014, and is expected to make her initial appearance in Fresno today. Nicoletti and Booth have not yet been apprehended.
If convicted, Nicoletti, Booth, and Heiss face a maximum statutory penalty of 10 years in prison and a $250,000 fine for access device fraud and five years in prison for conspiracy to commit access device fraud. If convicted of aggravated identity theft, Nicoletti faces a mandatory-minimum two years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tax Fraudsters Are Still at It the Old Fashioned Way TooRead the Press Release
ATLANTA – Last week Attorney General Eric Holder warned U.S. taxpayers to beware a “rising threat” of scammers seeking fraudulent federal tax refunds based on stolen identities, which he described as an “increasingly urgent problem.” He should know. Attorney General Holder has been the victim of identity theft himself.
“Tax cheats come in many different stripes,” said United States Attorney Sally Quillian Yates. “Some steal identities and use them to file fraudulent tax returns, while others file fraudulent tax returns in their own name. Either way, all hardworking citizens who pay their own fair share of taxes are the victims. As the tax filing deadline nears, we want to remind members of our community that we will investigate and prosecute tax fraud in all its various forms.”
Indeed, the U.S. Attorney’s Office for the Northern District of Georgia has prosecuted over 20 individuals over the last 12 months for so-called Stolen Identity Refund Fraud. These cases charge individuals who use third-party personal information – names, social security numbers, and dates of birth – to file false federal tax returns for refunds. Many times the victims, whose information is taken through internet scams or from public sources, do not realize that their identity has been stolen until they try to file a tax return of their own with the IRS, only to learn that someone else has already filed a tax return in their name.
"These unscrupulous defendants thought they had devised clever schemes to thwart the IRS and steal from American taxpayers" stated Veronica F. Hyman-Pillot. “As the defendants in these cases have learned, stealing from the American people will not be tolerated and you will be held accountable. IRS Criminal Investigation, along with its law enforcement and Department of Justice partner's, will continue to actively investigate those individuals who prey on unsuspecting victims and try to undermine the integrity of the U.S. tax system."“These cases affirm that the Department of Justice is committed to investigating and prosecuting all types of tax fraud,” said Assistant Attorney General for the Tax Division Kathryn Keneally. “I thank the U.S. Attorney’s Office and IRS-Criminal Investigation for their diligent efforts to fight tax fraud, and we in the Tax Division will continue to work with our law enforcement partners to bring tax cheats to justice.”
In addition to Stolen Identity Refund Fraud prosecutions, federal prosecutors in the Northern District of Georgia, in conjunction with the U.S. Department of Justice Tax Division, and Special Agents of the Internal Revenue Service Criminal Investigation, continue to investigate and prosecute more “traditional” tax fraud cases, where individuals are charged with fraudulently filing tax returns of their own.Current tax prosecutions include the following:
- Earlier this week, Kenneth and Kimberly Horner of Conyers, Ga., were arraigned before United States Magistrate Judge Gerrilyn G. Brill on an indictment that charges them with four counts of filing false personal and corporate tax returns for the years 2007 and 2008. The indictment alleges that the Horners, who owned and operated Topcat Towing and Recovery, Inc., materially underreported gross receipts or sales and total income on their corporate and personal tax returns, respectively.
- On April 29, 2014, Amberula Levitt, of East Point, Ga., is scheduled to be sentenced following her guilty plea in October 2013, to willfully filing false tax returns. According to the indictment and other information presented in court, Levitt operated Tax Time Tax Service (“Tax Time”), a tax preparation business with multiple locations throughout metro Atlanta. Levitt fraudulently under-reported the earnings from Tax Time on her personal tax returns. For the years 2004 through 2009, Levitt owes approximately $620,000 in back taxes to the IRS.
- On March 6, 2014, DeMarco Doxie of Peachtree City, Ga., was arraigned on a superseding indictment charging him with multiple wire and mail fraud counts, and four counts of filing false tax returns for the years 2008 through 2011. The indictment alleges that from June 2007 through August 2011 Doxie defrauded his employer by creating a fictitious company that he then used to submit to his employer numerous fraudulent invoices for payment. The indictment further charges that Doxie materially underreported his income on his personal income tax returns from 2008-2011.
And as an example of the long memory federal law enforcement can have, Ali Ibrahim, formerly of Tucker, Georgia, pled guilty on February 5, 2014 to federal tax evasion for underreporting his taxable income on his 1990 tax return. Ibrahim became a fugitive from justice following his indictment in January 2001, only to be arrested and extradited from Canada almost 13 years later in December 2013. Ibrahim was sentenced on March 26, 2014 to a time served sentence of approximately 18 months.
Members of the public are reminded that indictments only contain charges. A 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.
These cases are being investigated by the Internal Revenue Service Criminal Investigation.
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/.
Tarpon Springs Man Sentenced to More Than 10 Years for False Invoice SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Otto Biltres (42, Tarpon Springs) to ten years and one month in federal prison for wire fraud and identity theft. As part of the sentence, the court also entered a money judgment in the amount of $2.7 million, the proceeds of the charged criminal conduct. Biltres pleaded guilty on November 25, 2013.
According to court documents, during a three-year period, Biltres, the owner of Biltres Staffing of Tampa Bay, LLC (Biltres Staffing), a temporary employee staffing company, submitted a series of false and fraudulent invoices to TempPay Inc., an Ohio based factoring company. “Factoring” is a financial transaction in which a business sells its accounts receivable (invoices) to a third party (the factor) at a discount. The factor advances a percentage of the face amount of the invoice to the business and collects the full amount from the customer in due course. The factor then pays the balance to the business minus the factor’s commission and other fees. The invoices in this case purportedly related to four companies to which Biltres was supplying temporary employees. In truth, Biltres’s company had no business relationship with those entities. In order to create the illusion that the bogus invoices were genuine, Biltres opened post office boxes, bank accounts, e-mail accounts and websites in the names of the purported client companies. He gradually increased the amounts of the fraudulent invoices over time, and used proceeds obtained through later fraudulent invoices to repay earlier fraudulent invoices. When the scheme was detected, TempPay suffered a loss in excess of $2.7 million.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Bob Mosakowski.
Students Learn About Gun SafetyRead the Press Release
OPELOUSAS, La. –The U.S. Attorney’s Office, the Baton Rouge Constable’s Office, and the Opelousas Police Department recently sponsored gun safety demonstrations at six St. Landry Parish elementary schools where students learned about the serious dangers of firearms.
The Louisiana Law Enforcement Gun Safety Program was held at Northeast Elementary, Park Vista Elementary, Grolee Elementary, J.S. Clark Leadership Academy, Southwest Elementary and South Street Elementary schools in Opelousas from March 10th to April 1st. The programs featured gun safety demonstrations by Baton Rouge Constables John Lawton and Brian Firmin, and Opelousas Police Chief Perry Gallow who spoke to the children about the dangers of juvenile gun use. U.S. Attorney Finley, along with members of her staff, Assistant U.S. Attorney Myers Namie, Law Enforcement Community Coordinator Mike Campbell, Contract Legal Technical Writer Henri LeJeune and Intelligence Specialist Aaron Broussard attended the events at different times and spoke to the children about the importance of taking the program seriously and the role of the U.S. Attorney’s office in prosecuting gun crimes.
The program not only brought students face-to-face with the dangers of firearms, but it also tested their knowledge of gun safety. The instructor showed the students various handguns and asked them if the weapons were real or fake. The students in many cases were unable to distinguish between real or fake guns because a number of them look, feel and weigh the same as real guns. At the end of the program, students watched as a .357 magnum fired a bullet into a watermelon inside of a protective enclosure. Students were instructed that weapons have to be handled safely, and that they should always let adults know if they can access guns.
“Safety of children in the Western District of Louisiana is of the utmost concern for this office,” Finley said. “Firearms are one of the leading causes of death of elementary school age children in this state. The Gun Safety Program helps educate students on how to react when finding a gun. This program can save a life. I want to thank the Baton Rouge Constables Office and the Opelousas Police Department for their commitment to the children of our community and their willingness to host these events.”
“I’m very grateful to the U.S. Attorney’s Office and the Baton Rouge Constables Office for helping to make this program possible,” Gallow said. “The partnership provides valuable information to children regarding guns and gun safety. The best information as well as the correct information saves lives, and that is our goal.”
Finley also said she hopes to have a Gun Safety Training Program for the Western District of Louisiana in the near future. The program would include trained instructors and a ballistics trailer to house the gun and watermelon used during the presentation.
The U.S. Attorney’s Office, Baton Rouge Constable’s Office, and the Opelousas Police Department sponsored the event. For more information about the program, contact U.S. Attorney’s Office Law Enforcement Coordinator Mike Campbell at 318-676-3600.
Statement by Attorney General Holder <br /> on Weekend Shootings in KansasRead the Press Release
WASHINGTON—U.S. Attorney General Eric Holder released the following statement Monday regarding the tragic shootings in Kansas yesterday:
“I was horrified to learn of this weekend's tragic shootings outside Kansas City. These senseless acts of violence are all the more heartbreaking as they were perpetrated on the eve of the solemn occasion of Passover.
“Justice Department prosecutors will work with their state and local counterparts to provide all available support and to determine whether the federal hate crimes statute is implicated in this case.“No matter what, we will do everything in our power to ensure justice is served in this case on behalf of the victims and their families. Our thoughts and prayers go out to all those affected by these heinous acts.”
Smuggler Gets Enhanced SentenceRead the Press Release
McALLEN, Texas ‐ Demetrio Vallejo, 41, of Edcouch, has been ordered to federal prison for nearly five years as a result of his conviction of smuggling undocumented aliens, announced United States Attorney Kenneth Magidson. Vallejo pleaded guilty Oct. 11, 2013.
Today, U.S. District Judge Randy Crane sentenced Vallejo to a sentence of 57 months imprisonment. The sentence was enhanced as the court took into consideration he had sexually assaulted a female undocumented alien and that a dangerous weapon was used during the assault. Following Vallejo’s prison term, he was further ordered to serve a three-year term of supervised release.
On June 29, 2013, deputies with the Hidalgo County Sheriff’s Office (HCSO) arrived at house in Edcouch. At that time, they encountered Vallejo and a female undocumented alien. The investigation resulted in the discovery that Vallejo had driven the undocumented alien and other undocumented aliens to a house where they were harbored and would also bring them food.
Co-defendants Esther Cano, 33, and George Love, 37, both of Weslaco, received respective sentences of 24 and six months for their roles in the alien smuggling conspiracy. Cano’s sentenced was enhanced because she had threatened two undocumented aliens after being arrested.
The investigation leading to the charges was conducted by Homeland Security Investigations and HCSO. Assistant United States Attorneys Kimberly Ann Leo and Kristen Rees prosecuted the case.
Salmon Man Pleads Guilty to Possession of Unregistered FirearmRead the Press Release
POCATELLO – Odin Ray Jarshaw, 56, of Salmon, Idaho, pleaded guilty today to one count of possession of an unregistered firearm, U.S. Attorney Wendy J. Olson announced. Jarshaw was indicted by a federal grand jury in Pocatello on October 23, 2013.
According to the plea agreement, on May 9, 2013, the defendant was in possession of a Vulcan Arms, model 47, 7.62 x 39 caliber rifle, with a sawed-off barrel, that was not registered to him in the National Firearms Registration and Transfer Record. According to the plea agreement, Jarshaw agreed to forfeit the sawed-off rifle and a fully automatic machine gun.
The charge is punishable by up to ten years in prison, a maximum fine of $250,000, and up to three years of 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 Lemhi County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted as part of Idaho’s Project Safe Neighborhoods Program, which seeks to reduce gun violence in Idaho.
S.F. Valley Woman Who Orchestrated Health Care Fraud Scheme That Submitted Nearly $25 Million in Bogus Bills Sentenced to over 7 YearsRead the Press Release
LOS ANGELES – A North Hollywood woman who worked in the health care industry was sentenced this afternoon to 76 months in federal prison for orchestrating a scheme that submitted nearly $25 million in fraudulent bills to Medicare for services and supplies that were medically unnecessary and sometimes were never provided.
Susanna Artsruni, 46, who formerly owned a durable medical equipment (DME) company and worked at a number of medical clinics in Los Angeles, was sentenced by United States District Judge Margaret M. Morrow.
Artsruni, who often used the names “Mary” and “Rose,” was sentenced after pleading guilty earlier this year to one count of health care fraud and one count of money laundering. In addition to the prison term, Judge Morrow ordered Artsruni to pay $9,624,556 in restitution to the Medicare program.
In a plea agreement filed in United States District Court, Artsruni admitted that she defrauded Medicare in a number of ways. In one part of the scheme, Artsruni had physician’s assistants at three Los Angeles medical clinics sign prescriptions and orders for medically unnecessary DME and diagnostic tests that were later referred to other Medicare providers that billed for the equipment and tests. Artsruni also caused the three clinics to bill Medicare for medically unnecessary services.
Artsruni fraudulently billed Medicare on behalf of her own DME supply company, Midvalley Medical Supply in Van Nuys, for medically unnecessary DME based on referrals from one of the three medical clinics.
In total, Artsruni caused more than $24.8 million in fraudulent claims to be submitted to Medicare, which paid more than $9.6 million on the bogus bills.
Artsruni also admitted that she wrote checks totaling more than $35,000 from the Midvalley bank account to three corporations that had no connection to the medical industry and apparently had not provided any legitimate business services to Midvalley. Artsruni admitted that she wrote these checks to conceal the nature of the funds as the proceeds of health care fraud and used the three corporations to launder these funds.
At the time that she worked at two of the clinics and wrote one of the checks to launder the proceeds of her fraud, Artsruni was free on bond in another health care fraud case. Although the terms of her pre-trial release in the 2008 case dictated that she not commit crimes and forbid her from working at medical facilities, Artsruni concealed her activities from her Pre-Trial Services Officer and engaged in the fraudulent conduct that led to most of the losses suffered by Medicare in the second case.
A second defendant in the case, Erasmus Kotey, a physician's assistant who worked with Artsruni in a medical clinic on North Vermont Avenue in Los Angeles, has pleaded guilty (see: http://www.justice.gov/usao/cac/Pressroom/2014/038.html) and is scheduled to be sentenced by Judge Morrow on September 8.
Charges also have been filed against three others associated with the money laundering and health care fraud schemes (see: http://www.justice.gov/usao/cac/Pressroom/2014/040.html). The three defendants in this case have pleaded not guilty and are scheduled to go on trial in early 2015.
All of these cases are the products of an investigation by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and IRS - Criminal Investigation.
The cases were brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion.
Release No. 14-043
Retired Buffalo Police Officer Pleads Guilty to Defrauding Injured on Duty ProgramRead the Press Release
BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Patrick S. O'Mara, 52, of Buffalo, N.Y., pleaded guilty to wire fraud before Chief U.S. District Judge William M Skretny. The charge carries a maximum penalty of 20 years in prison, a $250,000 fine or both.
Assistant U.S. Attorneys Trini E. Ross and John E. Rogowski, who are handling the case, stated that on February 16, 2004, the defendant, a Buffalo Police Officer, was placed on Injured on Duty Status (IOD) by the City of Buffalo. O'Mara was placed on IOD status for exacerbation of cervical and lumbar strains previously suffered while on duty. The defendant remained on IOD status until October 18, 2004 when he was ordered to return to light duty. O'Mara again claimed to have injured his right arm on March 21, 2005 while lifting two reams of copy paper. While the defendant did not report the injury to his superiors until 23 days later, the defendant was placed on IOD status once again on September 6, 2005 where he remained until he retired.
While the defendant's primary care physician did not recommend that O'Mara return to work, several independent medical exams concluded that the defendant was not permanently disabled. One doctor noted that the defendant walked into his office using a cane, but later witnessed O’Mara walking in the parking lot without any limp. In addition, the investigation determined that the defendant worked as a paid musical director and church organist during most, if not all, of the time that he has been on IOD status. Such work would have involved the use of his right arm.The defendant retired from the Buffalo Police Department effective March 31, 2012, following an independent medical exam and administrative hearing. During an interview with Special Agents from the Federal Bureau of Investigation on May 9, 2012, the defendant stated (among other things) that he was capable of performing light duty and had been playing the organ for a church. Nevertheless, the defendant stated there was no incentive to return to work on light duty status because, “it is demeaning to sit at a desk and answer phones and I consider it to be punishment,” and “the pay on IOD status which is without taxes is actually an incentive to stay off duty in IOD status.”
“The IOD program is an important way in which injured officers continue to receive compensation for their difficult and oftentimes heroic work,” said U.S. Attorney Hochul. “When the program is abused, however, more than taxpayers suffer. Those officers who remain faithfully at their post are forced to work longer hours, more often, and in turn have an even greater chance of experiencing injury. While the vast majority of officers are honest and exemplify the highest ideals of their profession, this Office will not hesitate to act when, as here, it finds evidence of fraud.”O'Mara's is one of two Buffalo Police Officers charged with defrauding the IOD Program. On May 9, 2012, Robert Quintana, who has been on IOD status since March of 2005, was arrested and also charged with mail and health care fraud. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled July 30, 2014 at 10:00 a.m. before Judge Skretny.Registered Sex Offender Pleads Guilty to Sending Obscene Material to A MinorRead the Press Release
WICHITA, KAN. A registered sex offender pleaded guilty Monday to sending obscene material to a minor while he was a patient at Larned State Hospital, U.S. Attorney Barry Grissom said.
Christopher M. Case, 34, pleaded guilty to one count of transferring obscene material to a minor. In his plea, he admitted that he resided in the Sexual Predator Treatment Program of Larned State Hospital when he committed the crime. In mid-2011 he obtained access to a smartphone, which he shared with other residents. In December 2011 and January 2012 he learned that another resident of the program was using the smartphone to communicate with a 13-year-old female via email and chat. The girl was in Montana.
On January 16, 2012, Case used the smartphone to send the girl video of himself masturbating.
Sentencing is set for June 30. Both parties have agreed to recommend a sentence of 20 years in federal prison. Grissom commended the Wichita Police Department's Internet Crimes Against Children Task Force, the Kansas Attorney General's office, Assistant U.S. Attorney Jason Hart and Steve Karrer of the Kansas Attorney General's Office for their work on the case.
Organizers of Long Running Marijuana Production and Distribution Ring Sentenced to PrisonRead the Press Release
The leader of a marijuana manufacturing and distribution conspiracy was sentenced today to five years in prison for drug and money laundering charges, announced U.S. Attorney Jenny A. Durkan. SCOTT JOHNSON, 48, of Bellingham, Washington also forfeited property in Whatcom County and Priest River Idaho, as well as multiple luxury vehicles, snowmobiles, boats and jet skis. JOHNSON also forfeited gemstones, a sculpture valued at $12,000, and seventeen firearms. JOHNSON and his cohorts admit they entered the marijuana conspiracy because of their greed. At sentencing, U.S. District Judge James L. Robart told JOHNSON, “you broke the law in a flagrant manner… you are a drug dealer and a criminal.”
According to filings in the case, JOHNSON was the leader of a group of marijuana cultivators and undertook sophisticated steps to market the marijuana across the country. He used others to transport the marijuana hidden in a motorhome. JOHNSON flew to New York on multiple occasions to finalize the sale to buyers in that city. Another leader in the organization, JAY WRIGHT, 50, also of Bellingham, was sentenced to three years in prison today. WRIGHT assisted in running the marijuana grows and served as the “number two” leader behind JOHNSON. Judge Robart told WRIGHT that he and others had been “ensnared by the lure of money, and there must be jail time to counteract that.”
Items forfeited in the case include: fourteen gemstones valued at $9,279; a 2012 Chevrolet Silverado 2500 LTZ; a 2009 Mercedes-Benz GL550; a 2009 Acura TL Sedan; a 2008 Honda Civic; a 2007 BMW 328i sedan; a 2004 Cadillac Escalade SUV; a 1997 Ford Expedition Eddie Bauer SUV; a forklift, backhoe, tractor, and snow blower; two motorcycles; seven snowmobiles; a 2000 Maxum Sport boat; a trailer valued at over $10,000; two wave runners; and 17 firearms seized in Bellingham and Priest River including hand guns, shot guns, and rifles.
This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.
The case was investigated by the Drug Enforcement Administration (DEA), U.S. Marshal Service, and Washington State Patrol. The case was prosecuted by Assistant United States Attorney Mark Parrent.
Opelousas Man Sentenced to 180 Months in Prison for Possessing and Receiving Child PornographyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that former child psychiatrist Gary Jefferson Byrd, 72, of Opelousas, La., was sentenced on Friday by U.S. District Judge Elizabeth E. Foote to 15 years in prison and 10 years of supervised release for possessing and receiving child pornography.
At the two-day jury trial in October of 2013, witness testimony and documents admitted into evidence established that from February 2008 to April 2011, Byrd ordered 44 compact discs containing videos of child pornography from a Canadian company. United States Postal Inspectors executed a search warrant on Byrd’s home and found stacks of compact discs containing tens of thousands of images of child pornography that Byrd had downloaded from the internet. Byrd had also printed hundreds of images of child pornography that he kept in files in his bedroom.
Byrd was previously convicted in 1992 by a federal jury of possessing child pornography and served 10 years in prison for that crime. Prior to the 1992 conviction, his employment was as a child psychiatrist.
This case is part of Project Safe Childhood, a U.S. Department of Justice launched nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Postal Service Investigations conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.Opelousas Man Sentenced for Robbing and Assaulting Mail CarrierRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced that Brandon B. Handy, 33, of Opelousas, La., was sentenced Friday by U.S. District Judge Elizabeth E. Foote to 24 years in prison and five years of supervised release for assaulting and robbing a U.S. Postal Service contract carrier.
During a two-day trail in December of 2013, witness testimony and documents admitted into evidence established that Handy and another individual wearing masks and armed with a pistol robbed a U.S. Postal Service contract driver on August 13, 2011, at the Lawtell Post Office. Handy approached the driver from behind, grabbed him by the neck, and wrestled him to his knees while the other individual took a bag of mail from the employee’s truck. After Handy and the other individual fled the scene, the driver was transported to a nearby hospital where he was treated for injuries.
The U.S. Postal Inspection Service and the St. Landry Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney Brett L. Grayson prosecuted the case.
Oakland Residents Charged in False Tax Refund Fraud SchemeRead the Press Release
OAKLAND – Akysha Rockwell made her initial appearance today and Paul Lamont Lee made his initial appearance on Friday, April 11, 2014, in federal court on a 20-count indictment charging them with conspiracy to file false claims, false claims, and identity fraud, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the Indictment, unsealed today, between Jan. 12, 2012 and July 16, 2012, Lee and Rockwell participated in a scheme to obtain and help others obtain refunds from the IRS based on false claims. To accomplish this scheme, Lee and Rockwell allegedly obtained names, social security numbers, and dates of birth for numerous people. The defendants then electronically filed federal income tax returns, in the names of these other people, claiming refunds derived from false tax credits, including the Earned Income Credit, the Additional Child Tax Credit, and the American Opportunity Credit.
Lee and Rockwell, both of Oakland, were indicted on March 13, 2014.
The maximum penalty for each count of conspiracy to file false claims, in violation of a Title 18, U.S.C § 286, is 10 years in prison and a fine of $250,000. The maximum penalty for each count of false claims, in violation of a Title 18, U.S.C § 287, is five years in prison and a fine of $250,000. The maximum penalty for each count of identity fraud, in violation of a Title 18, U.S.C § 1028(a)(7), is two years in prison and a fine of $250,000.
Assistant U.S. Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
Please note, an indictment contains only allegations and, as with all defendants, Rockwell and Lee must be presumed innocent unless and until proven guilty.
(Lee & Rockwell indictment )
North Carolina Woman Pleads Guilty to Stealing Benefit Payments from Social Security AdministrationRead the Press Release
BOSTON - A North Carolina woman, formerly of Boston, was convicted for stealing more than $179,000 in benefit payments from the Social Security Administration.
Mary Ann Allen, 75, pleaded guilty today before U.S. District Court Judge Denise J. Casper to theft of public money. Sentencing is scheduled for July 16, 2014.
The Social Security Administration (SSA) began an investigation regarding disability benefit payments that were being paid to a deceased individual since June 1973. In 1983, those benefits were converted into retirement benefits. In 1982, the individual and Allen opened a joint bank account with Bank of America to which the individual’s SSA benefit checks were deposited. The only signatories on the account were the individual and Allen’s. Until November 2009, the SSA continued depositing the individual’s benefits, ranging in installments between $400 and $827, into that account.
Further investigation by the SSA revealed that on August 24, 1984, the individual died. However, because the SSA was not notified of individual’s death, benefit payments were deposited until November 2009. During that period of time the SSA deposited $179,926 into the account. Between August 1984 and November 2009, Allen withdrew these funds in Massachusetts and North Carolina and used them for personal use.
In 2010, Allen was interviewed by SSA agents in North Carolina when she admitted that after the individual’s death she continued to receive his benefit payments and continued to withdraw the funds.
Allen faces up to 10 years in prison, three years of supervised release, a fine of up to $250,000 and $179,926 in restitution to the Social Security Administration.
United States Attorney Carmen M. Ortiz; Scott Antolik, Special Agent in Charge of U.S. Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. The case is being prosecuted by Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Newport News Man Pleads Guilty to Participating in MurderRead the Press Release
NEWPORT NEWS, Va. – Mustafah Kalil Muhammad, 27, of Newport News, Va., pleaded guilty today use of a firearm resulting in the death of Lloyd Robinson on January 8, 2010.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Royce E. Curtin, Special Agent in Charge of the Federal Bureau of Investigation’s Norfolk Field Office, and Richard W. Meyers, Chief of Newport News Police, made the announcement after the plea was accepted by United States District Judge Raymond A. Jackson.
Muhammad was charged, along with others, in a superseding indictment returned in July, 2013, with interference with commerce by robbery and use of a firearm resulting in death.
Muhammad faces a maximum penalty of life in prison when he is sentenced on July 23, 2014, in Norfolk.Muhammad is alleged to be part of a criminal organization known locally as “Thug Relations,” alternatively known as “the Duct,” “Warwick Lawnz,” “TR,” and “from the Duct to the Lawnz,” a neighborhood gang operating in the Aqueduct Apartments, St. Michael’s Apartments, Mariner’s Landing Apartments, Heritage Trace Apartments, as well as Warwick Lawns, Warwick Town Home, Sharon Drive, and the Savage Drive areas of Newport News, Virginia. The alleged gang members are accused in the indictment of protecting their criminal enterprise and activities through murder, attempted murder, witness intimidation, robbery, and narcotics distribution. In a statement of facts filed with his plea agreement Muhammad admitted to his participation in the drug related home invasion and murder of Lloyd Robinson on January 8, 2010.
This investigation was led by FBI and the Safe Streets Task Force, with assistance from the Newport News Police and the Virginia State Police. Assistant United States Attorneys Howard J. Zlotnick and Lisa R. McKeel, and Special Assistant United States Attorney Jonathan A. Ophardt 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.
New York Attorney Stanley L. Cohen Pleads Guilty to Federal Tax ChargeRead the Press Release
SYRACUSE, NEW YORK - Stanley L. Cohen, an attorney with offices on Avenue D, New York City and Jeffersonville, New York, entered a guilty plea in United States District Court in Syracuse this morning to a felony offense of corruptly obstructing and impeding the Internal Revenue Service, according to United States Attorney Richard S. Hartunian and Acting IRS Criminal Investigations Special Agent-in-Charge Shantelle P. Kitchen.. Sentencing is scheduled in U.S. District Court on August 21, 2014 at 10:00 am before the Hon. Norman A. Mordue.
Under terms of a plea agreement, Cohen is to be sentenced to 18 months incarceration. He is also required within the next ten days to enter guilty pleas in the Southern District of New York to pending charges of failure to file income tax returns. As part of his agreement, Cohen is also required to pay all federal and state income taxes due and owing from the years 2005 through 2010. He has also waived any appeal and collateral attack of his conviction.
This case followed a lengthy investigation led by the Internal Revenue Service-Criminal Investigations, Syracuse Office. Investigators found that the defendant failed to file both federal and state tax returns for the years 2005-2010. In those years, he only filed a single extension to file his return and made only a modest payment towards taxes due and owing. He subsequently never filed state or federal tax returns for these six years.
In court, the government stated that its evidence revealed that in the tax year 2004, the last year Cohen filed an income tax return, he had claimed gross receipts of $289,000 when in fact investigators ascertained that he had deposits in excess of $426,000 for that year. Investigators determined that for the years 2004 through 2010, Cohen had deposits totaling $3,673,906.85 in his financial accounts.
In the course of the investigation, judicially authorized search warrants were executed at Cohen’s law office on Avenue D in New York City and his law office in his home in Jeffersonville, New York. Investigators found that essentially he kept no financial records regarding income or payment of fees from clients. From 2005 to 2010, he also failed to file either a 1099 or W2 for payments made to a law office assistant, who performed services for him during those years.
A search warrant executed on a safe deposit box that Cohen maintained in a bank in Jeffersonville, New York revealed that he had $50,000 in cash. Bank records revealed that Cohen accessed his safety deposit box 77 times from 2006 through 2008 and made deposits of cash totaling approximately $504,000 at that bank. Additional investigation revealed that approximately $183,500 of this amount was deposited by Cohen on days when he accessed his safety deposit box. On many occasions, Cohen made multi-thousand dollar cash deposits at the Jeffersonville bank and frequently exchanged small bills for $100 bills.
Additional evidence developed during the investigation revealed that Cohen made deposits of cash to his financial accounts as follows:
In 2004 he made in excess of $194,000 in cash deposits, in 2005 more than $237,000, in 2006 more than $321,000, in 2007 more than $395,000, in 2008 more than $405,000, in 2009, after the execution of the referenced search warrants, he deposited more than $54,000 and in 2010 more than $147,000 in cash. Many of these deposits were made in amounts under $10,000, thus avoiding the filing of currency transaction reports required under the law.
Investigators also found that Cohen would cause wire transfers of cash to his accounts to be made by clients, many of whom were residents of the Akwesasne Reservation. These wire transfers all made by MoneyGram from the Speedway Convenience Store located near the Reservation. The wire transfers totaled more than $643,000 between October 2004 and December of 2008.
United States Attorney Richard S. Hartunian stated, “As citizens, we all have an obligation to pay our fair share of taxes needed to support the United States. Stanley Cohen sought to avoid his tax obligations by consistently failing to file his federal and state tax returns over a six year period and by operating his law practice in a manner that corruptly hid millions of dollars in legal fees from the Internal Revenue Service. No citizen, especially an attorney, is above the law. The Internal Revenue Service has done a commendable job in helping to bring Mr. Cohen to justice.”
Acting Special Agent in Charge Shantelle P. Kitchen said, “The investigation and prosecution of individuals who brazenly attempt to obstruct the Internal Revenue Service and to prevent it from performing its mission is vital to maintaining public confidence in our tax system. In addition to serving as a warning to those who might contemplate similar activity, this outcome provides the honest American taxpayer with a timely reassurance that their government is committed to making sure that everyone pays their fair share.”
The case was investigated by the Internal Revenue Service-Criminal Investigations, Syracuse Office, the New York State Police and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Stephen Green and John Duncan.
For further information please contact Assistant U.S. Attorney John Duncan at 315-448-0672.
Naples Resident Pleads Guilty in Treasury Check Cashing and Stolen Identity SchemeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announce that Victor Martinez Pantoja, 23, of Naples, pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 64l, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. Sentencing is scheduled for June 30, 2014 at 2:45 p.m. before U.S. District Judge Jose E. Martinez in Key West.
According to court documents, on November 21, 2013, Pantoja met with two FBl Under Cover Employees (UCEs) and negotiated a deal to cash fraudulently obtained U.S. Treasury income tax refund checks. During the meeting, Pantoja gave the UCEs three Treasury checks totaling $27,263 to be cashed, provided a copy of a counterfeited Florida driver license and social security card for each corresponding Treasury check, and forged the names of the individuals to endorse the back of each check. Pantoja obtained these U.S. Treasury checks by filing fraudulent tax returns using the identities of individuals who died in the previous tax year. He obtained the deceased individuals’ identities from the Internet.
Court documents also state that the UCEs agreed to cash the Treasury checks within three business days and to return $20,500 to Pantoja. On November 26, 2013, the UCEs gave Pantoja $20,500 as payment for the previous three Treasury checks. During this meeting, Pantoja provided the UCEs with 6 Treasury checks totaling $35,547, which were to be cashed by the UCEs.
Pantoja faces a maximum sentence of ten years in prison for the theft of government money charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of FBI, IRS-CI, and the USPIS. This case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
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.
Muskogee Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
Muskogee, Oklahoma - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JUSTIN WAYNE RIGGS, age 26, of Muskogee, Oklahoma, pled guilty to Failure to Register as Sex Offender, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(A) and 2250(a)(3).
The charge arose from an investigation by the United States Marshal Service. The defendant was indicted in March, 2014.
The Indictment alleged that from in or about April 2013, until on or about October 16, 2013, in the Eastern District of Oklahoma, and elsewhere, the defendant, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having been Court-Martialed and convicted of felonies by the United States of America Department of the Army on or about May 6, 2011, for the offenses of knowing possession of images of child pornography and distribution of child pornography, knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the defendant’s guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
The statutory range of punishment is not more than 10 years imprisonment and/or up to a $250,000.00 fine. The defendant remains in the custody of the United States Marshal Service.
Assistant United States Attorney Edward Snow represented the United States.
Minneapolis Man Sentenced to 20 Years in Synthetic Drug ConspiracyRead the Press Release
FARGO – Acting U.S. Attorney Christopher C. Myers announced that on April 14, 2014, Casey Stevens Rosen, 24, Minneapolis, Minn., was sentenced before U.S. District Judge Ralph R. Erickson to serve 20 years in prison for conspiracy to possess and distribute analogues resulting in serious bodily injury or death.
The conspiracy involved the distribution of an illegal substance through an online business called Motion Resources which imported illegal psychedelic hallucinogens from several countries and sold them throughout the United States. Along with co-conspirator Andrew Spofford the hallucinogens were distributed throughout the Grand Forks, N.D., area. At least 13 others have been charged in connection with “Operation Stolen Youth.” Judge Erickson also ordered that Rosen pay a forfeiture of $100,000 in addition to paying $100 special assessment to the Crime Victims Fund and serve five years supervised release.
The case was investigated by Homeland Security Investigations, Drug Enforcement Administration, Food and Drug Administration, North Dakota Bureau of Criminal Investigations, and Grand Forks Police Department.
First Assistant U.S. Attorney Chris Myers prosecuted the cases.
Milwaukee Woman Pleads Guilty to Felony Tax Charges, Mail Fraud and Food Stamp FraudRead the Press Release
James L. Santelle, the United States Attorney for the Eastern District of Wisconsin, announced that on April 11, 2014, Tiffiny Harden (age 30) of Menomonee Falls, plead guilty before Judge Randa to filing false tax returns for over 20 taxpayers and fraudulently obtaining over $120,000 in tax refunds.
Court documents indicate that Harden sought tax refunds by claiming false incomes, false education credits and/or claiming false dependents for the taxpayers. Several of the taxpayers told law enforcement officials that they did not know Harden and did not know how she got their information. Others stated that Harden had offered to help them fill out their returns and they provided her with their identifying information, but never heard back from her. Many of the victims indicated that Harden had offered to fill out their tax returns for them, but had never provided her with the information regarding the employer, educational status, or the dependents listed in the returns using their identities. At least two taxpayers did not know that they were claimed as dependents.
Harden used the United States mail to receive and send false information to the IRS. In addition, during the time she was receiving the tax refunds, she also received food stamps. In order to receive this federal benefit, she claimed in her Food Share application to be homeless during that period and failed to disclose the fact that she had received over $100,000 from the fraudulent tax return scheme.
Based on this guilty plea, Harden faces up to 30 years in prison and fines of up to $510,000. Harden has also agreed to pay restitution to the IRS in the sum of $120,125.00 and $400 to the U.S. Department of Agriculture, Supplemental Nutrition Assistance Program.
Harden's sentencing is scheduled for July 31, 2014.
This case was jointly investigated by the IRS (Criminal Investigative Division), the United States Postal Inspection Service and the United States Department of Agriculture.Michigan Aquarium Employee Sentenced for Illegal Trafficking of Marine LifeRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Acting Special Agent in Charge, NOAA Fisheries Office of Law Enforcement, and Edward Grace, Deputy Assistant Director, U.S. Fish & Wildlife Service, Office of Law Enforcement, announce that Joseph Franko, 35, of Romulus, Michigan, was sentenced today in in Key West for conspiring to purchase, transport, harvest and sell sea fans, ornamental tropical fish and alligators, knowing the wildlife was taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4), and 3373(d)(1) and (2), all in violation of Title 18,United States Code, Section 371.
United States District Judge Jose E. Martinez, who had previously accepted Franko’s guilty plea, imposed a sentence of five months in prison, followed by five months of home confinement with electronic monitoring, and a two year term of supervised release. The Court determined that he was unable to pay a criminal fine. At the conclusion of the hearing Franko was remanded into the custody of the U.S. Marshal’s Service. Franko’s co-defendant, Richard Perrin, 80, also of Romulus, was sentenced in April in the same case to a three year term of probation, a criminal fine of $15,000, and forfeiture of the vehicle used in the commission of the Lacey Act violations.
According to the indictment and joint factual statements submitted to the Court, during the period extending from December 2008 through approximately December 2011, Perrin and Franko engaged in a conspiracy to purchase, harvest, and transport marine life and reptiles from Florida to Michigan for sale through a business known as Tropicorium, Inc. Perrin was the owner of Tropicorium, engaged in the day-to-day management and operation of the corporation, while Franko was an employee. Tropicorium was organized in 1993 under the laws of Michigan with its principal place of business in Romulus. Tropicorium was engaged in the purchase and retail sale of marine life and reptiles, including sharks, marine invertebrates, sea fans (Gorgonia flabellum and Gorgonia ventalina), ornamental tropical fish, and alligators (Alligator mississippiensis).
The defendants admitted that they failed to acquire or possess the licenses required by Florida Statute for the marine life they harvested during multiple trips to the Florida Keys. Additionally, the sea fans taken by the defendants and sold in Michigan are prohibited from being harvested from the waters of the State of Florida or the Florida Keys National Marine Sanctuary. According to the Factual Statements, Perrin and Franko also made stops while en route to and from the Keys in the area of Big Cypress National Preserve, where they illegally poached juvenile alligators to sell through Tropicorium. Unknown to the defendants, on one occasion they actually sold a baby alligator and illegal sea fans from a Florida harvesting trip to an undercover Special Agent of the Fish & Wildlife Service. The two defendants also utilized a facility on Grassy Key as a maintenance base for their harvested marine life until they were ready to ship or transport the specimens to Michigan for sale.
Mr. Ferrer commended the investigative efforts of NOAA Office of Law Enforcement and the Fish & Wildlife Service Office of Law Enforcement. Mr. Ferrer also thanked the Michigan Department of Natural Resources and the Florida Fish and Wildlife Conservation Commission. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
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.
Manhattan U.S. Attorney Announces Seizure of Radio Equipment from Pirate Radio StationsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Travis LeBlanc, Acting Enforcement Bureau Chief of the Federal Communications Commission (“FCC”), announced the unsealing of two complaints seeking the forfeiture of radio transmission and production equipment allegedly used in the illegal broadcast of pirate radio stations on a total of four different FM frequencies, and further announced that on April 2, 2014, FCC agents and Deputy U.S. Marshals, pursuant to warrants, seized the radio transmission and production equipment identified in the two complaints.
The Communications Act of 1934 makes it unlawful to operate radio broadcasting equipment above certain low-intensity thresholds without having a license issued by the FCC, and authorizes the seizure and forfeiture of any equipment used with willful and knowing intent to broadcast without an FCC license.
FCC Acting Enforcement Bureau Chief Travis LeBlanc said: “As alleged, these pirate radio stations were for-profit businesses that broke the law to line their own pockets while disrupting legitimate broadcasters. They should be out of business and off the air.”
According to the two Complaints unsealed in Manhattan federal court, and various unsealed documents associated with the two warrants executed on April 2:
FCC agents identified a commercial space at 80-84 West 181st Street in the Bronx as the production studio for “Rika FM,” which illegally broadcasts its programming on 94.5 and 94.9 MHZ. FCC agents also identified a residence at 1370 St. Nicholas Avenue in Manhattan as the location of the radio transmission equipment by means of which “Rika FM” was illegally broadcast.
FCC agents also identified radio transmission equipment at a second residence at 1370 St. Nicholas Avenue in Manhattan that was being used to illegally broadcast on 95.3 MHZ and 100.1 MHZ.
Mr. Bharara praised the investigative work of the Federal Communications Commission and also thanked the United States Marshals Service for its assistance.
Assistant United States Attorney Arastu K. Chaudhury is in charge of these cases.
FCC Seizure Complaint 1
FCC Seizure Complaint 2Manchester Man Sentenced for Cocaine and Crack DistributionRead the Press Release
CONCORD, NEW HAMPSHIRE –Juan Parrilla, 39, of Manchester, New Hampshire, was sentenced in United States District Court for the District of New Hampshire to 42 months in prison, for engaging in the distribution of cocaine and possessing crack cocaine with the intention of distributing it, announced United States Attorney John P. Kacavas.
An undercover law enforcement officer of the Manchester Police Department engaged in numerous hand-to-hand purchases of cocaine from Parrilla beginning in October 2011. A search warrant was executed at Parilla’s residence in Manchester and law enforcement seized 117 grams of crack cocaine.
The investigation of Parrilla was conducted by members of the Manchester, New Hampshire, Police Department Special Investigations Unit and prosecuted by Assistant United States Attorney Terry Ollila.Manager of Hud Section 8 Housing Found Guilty in Manhattan Federal Court on All Counts Relating to Bribery and False StatementsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Christina Scaringi, the Special Agent-in-Charge of the Northeastern Region of the U.S. Department of Housing and Urban Development (“HUD”), Office of Inspector General (“OIG”), and James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s (“ICE”) Homeland Security Investigations (“HSI”), announced that NOVELETTE “PAT” CAMPBELL, a manager of the federally subsidized Tricham Houses in Manhattan, was found guilty on Friday, April 11, 2014, of accepting bribes in connection with federal program funds, conspiracy to accept bribes in connection with federal program funds, and four counts of false statements relating to HUD certifications. The investigation that led to CAMPBELL’s arrest and her conviction last week was undertaken by HUD-OIG. CAMPBELL was convicted after a one-week jury trial before U.S. District Judge George B. Daniels.
Manhattan U.S. Attorney Preet Bharara said: “As a unanimous jury found, for over a decade, Novelette “Pat” Campbell exploited her position as a manager of the Tricham Houses in Manhattan by illegally trading prime spots on the waiting list for federally subsidized apartments in exchange for cash. Her bribery scheme was uncovered by the dedicated investigators at HUD OIG and ICE HSI, and she now stands convicted after trial for her crimes.”
HUD OIG Special Agent-in-Charge Christina Scaringi said: “Friday’s verdict should send a strong message to those individuals who fail to exercise integrity in connection with HUD, we will vigorously pursue investigation and prosecution of all involved in order to maintain the integrity of our programs. Ms. Campbell’s case is especially egregious in that not only did she intentionally violate the Department's trust, she violated the trust of dozens of eligible families who followed the rules and waited years for a decent place to call home. Working in partnership with the U.S. Department of Homeland Security, Office of Homeland Security Investigations, the U.S. Attorney’s Office, and HUD OIG, we will continue to aggressively pursue allegations of corrupt management agent behavior.”
ICE HSI Special Agent-in-Charge James T. Hayes, Jr. said: “Instead of helping applicants who sought affordable housing, Ms. Campbell and her associates helped themselves to thousands of dollars in bribes and gifts from individuals who knew they were ineligible to receive government assistance. HSI and its law enforcement partners will continue to preserve the integrity of federally funded programs.”
According to the Indictment, as well as evidence presented at CAMPBELL’s trial:
From April 2000 through October 2011, CAMPBELL accepted bribes and engaged in a conspiracy to accept bribes from individuals who were not on a waiting list for subsidized housing at Tricham Housing. Rather than maintain the integrity of the waiting list and process applications in a first-come, first-serve basis as required by HUD, CAMPBELL sold spots on the waiting list for bribes. The people who paid bribes took apartments away from people who were on the waiting list for years, but never received apartments because CAMPBELL sold their spots for bribes. CAMPBELL accepted bribes ranging from $2,000 through $9,000, depending on the size of the apartment.
In addition, CAMPBELL falsified HUD certifications by falsely representing that all administrative procedures had been followed, when they had not, and, on two occasions, forged the signature of a tenant. CAMPBELL also altered original tenant applications for Section 8 housing to falsely add bribe payers as relatives of original applicants.
CAMPBELL, 55, of Bronx, New York, was convicted of six counts relating to accepting bribes in connection with federal program funds, conspiracy to accept bribes in connection with federal program funds, and four counts of false statements to HUD. The charges relating to accepting bribes in connection with federal program funds carry a maximum penalty of 10 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. The count charging conspiracy to accept bribes in connection with federal program funds carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. Each of the counts charging false statements funds carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense. CAMPBELL is scheduled to be sentenced by Judge Daniels on August 12, 2014, at 10:00 a.m. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of HUD OIG and ICE HSI. He noted that the investigation is continuing.
This case is being handled by the Office’s General Crimes Section. Assistant U.S. Attorneys Carolina A. Fornos and Rahul Mukhi are in charge of the prosecution.
U.S. v. Novelette Campbell Indictment
Los Angeles Man Sentenced to Prison for Stealing Tuolumne County Couple’s Escrow FundsRead the Press Release
FRESNO, Calif. Steve Kessedjian, 51, of Los Angeles, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 21 months in prison for defrauding clients of escrow funds, United States Attorney Benjamin B. Wagner announced.
According to court documents, Kessedjian operated two businesses — Amerilend and Targa Escrow — to help clients secure refinanced home loans. In December 2007, a couple from Jamestown, Calif., used Amerilend services and applied for a loan to refinance their home and pay off their credit cards. After the victims’ first mortgage was paid off, the remaining loan proceeds were wired to Kessedjian’s Targa Escrow account. However, instead of disbursing the proceeds to the victims’ credit card companies as directed by the escrow instructions, Kessedjian took the funds for his own purposes. Several months after escrow closed, Kessedjian then made checks payable to the victims and their credit card companies, purportedly as repayment for their escrow funds he had taken. When the checks were presented to the bank, however, there were insufficient funds in Kessedjian’s account. As a further part of his scheme to defraud, Kessedjian caused the HUD-1 settlement statement to be changed to show no money being due out of escrow proceeds.
Kessedjian admitted in his plea agreement that his actions resulted in the Jamestown victims declaring bankruptcy because they could not make payments on both the larger refinanced loan Kessedjian’s company secured for them and the credit card debts that were to have been paid off with the funds taken by Kessedjian. As part of his sentence, Judge O’Neill ordered Kessedjian to pay $72,000 in restitution to the victims of his fraud scheme.
This case is the product of an investigation by the U.S. Secret Service and the Tuolumne County Sheriff’s Office. Assistant U.S. Attorneys Christopher Baker and Michael Tierney prosecuted the case.
Longview Man Sentenced to 27 Months in Prison for Illegal Sewage Dumping SchemeRead the Press Release
A Longview septic tank pumping business and its owner were sentenced today for multiple felony criminal violations of the Clean Water Act, announced U.S. Attorney Jenny A. Durkan. RAY CALDWELL, 60, and his company, ALL-OUT SEWER AND DRAIN SERVICE, INC., were found guilty in December 2013, following a bench trial before U.S. District Judge Benjamin Settle. CALDWELL was sentenced to 27 months in prison, three years of supervised release, and a fine of $250,000 for twenty-five counts of violating the Clean Water Act, six counts of mail fraud, and two counts of making false statements. The company shares in the $250,000 fine and will be on probation for three years. In May, Judge Settle will determine the amount of restitution owed by CALDWELL and the company. At the sentencing hearing Judge Settle said, “You saw an opportunity to essentially deprive public entities of money they were entitled to receive…. It’s very important to communicate to the community that if you engage in fraud on local government, you will realize consequences.”
“This defendant illegally dumped more than two million gallons of waste and pollutants into the sewer system,” said U.S. Attorney Jenny A. Durkan. “The company and its owner stole hundreds of thousands of dollars in public services and then embarked on an extended campaign of deceit to conceal the scheme. The crimes damaged the honest rate payers who dutifully paid for the services they used.”
According to records filed in the case, the defendants’ scheme to defraud the City of Longview, Cowlitz County, and the Three Rivers Regional Wastewater Authority went on for more than ten years. ALL-OUT was engaged in the business of pumping, hauling, and disposing of septic tank waste, grease trap waste, and industrial wastewater. Federal, state, and local regulations require that all trucked and hauled wastes of the type handled by ALL OUT be discharged to approve treatment facilities. It was ALL OUT’s practice to transport the waste to its facility in Longview where it was minimally treated and stored in a 10,000 gallon storage tank. While some of the tank contents were appropriately trucked to approved treatment facilities, a majority of the commingled waste was routinely dumped down an unauthorized sewer port located on the ALL OUT facility.
Based on video surveillance footage seized by law enforcement authorities, CALDWELL and his business partner, Randy Dingus, undertook the illegal discharges in the early morning hours, under the cover of darkness, to avoid being detected by passersby or unsuspecting employees. When a records review conducted by the City of Longview in 2010 threatened to expose the scheme, the defendants began submitting false documents underreporting the true volume of trucked and hauled waste. This deception worked until August 2012 when law enforcement surveillance activities prompted by citizen complaints revealed the early morning dumping.
On August 17, 2012, EPA criminal agents executed a search warrant at the ALL OUT facility and seized video footage from the company’s surveillance system. The footage depicted twenty-four separate illegal dumping incidents over a six week period in July and August of 2012. EPA criminal agents returned to the ALL OUT facility in the early morning of December 18, 2012 after receiving reports that the illegal dumping was still occurring. The agents arrested CALDWELL after observing him using large flexible hoses to dump waste from the storage tank directly into the sewer port.
CALDWELL was convicted of illegally dumping waste on each of the days captured on the video footage as well as the December 18, 2012 dumping event. CALDWELL was also convicted of using the mail system to further his scheme of defrauding the public utilities. Finally, CALDWELL was convicted for making false statements in a mandated user survey seeking information regarding ALL OUT’s discharges to the sewer system, and for lying to EPA agents when confronted in August 2012.
CALDWELL’s business partner, Randy Dingus, 54, had previously pleaded guilty to violating the Clean Water Act for his participation in the illegal dumping scheme. He was sentenced in January 2014 to 30 days in prison, two months of home detention, one year of supervised release, 40 hours of community service, and a $15,000 fine.
The case was investigated by the Environmental Protection Agency Criminal Investigation, with assistance from the Washington State Department of Ecology, Cowlitz County, the City of Longview, and the Three Rivers Regional Wastewater Authority. The case was prosecuted by Assistant United States Attorneys Jim Oesterle and Lawrence Lincoln.
Long Island Man Sentenced to Two Terms of Life in Prison for Conspiring to Murder Federal Judge and Federal ProsecutorRead the Press Release
BROOKLYN, N.Y. — U.S. Attorney William J. Hochul, Jr. announced today that Joseph Romano, 51, of Levittown, N.Y., was sentenced to two terms of life in prison for conspiring to murder the Assistant United States Attorney and the United States District Judge involved in his prior prosecution for fraud. The life terms of imprisonment were ordered to run consecutively to Romano’s 15-year sentence for fraud.
As the evidence proved at trial, the defendant agreed to pay $40,000 to an undercover police officer, who he thought was a hit-man, to kill the federal judge and prosecutor and also to cut off the victims’ heads in exchange for a “bonus.” In connection with the murder conspiracy conviction, the defendant also forfeited over $200,000.
“In an attempt to subvert the justice system, this defendant attempted to murder a sitting federal judge and a federal prosecutor” said U.S. Attorney Hochul. “Originally sentenced to 15 years for fraud, Joseph Romano will now spend the rest of his natural life behind bars because of his heinous crimes.
In February 2012, at the federal courthouse in Central Islip, New York, Romano was sentenced by the United States District Judge for the Eastern District of New York to 15 years in prison for engaging in an eight-year, multi-million dollar fraud involving the telemarketing of coins. The Assistant United States Attorney had successfully prosecuted Romano for this fraud. In August 2012, law enforcement authorities learned from another inmate at the Nassau County Correctional Center where Romano was being held that Romano was plotting to murder the United States District Judge and Assistant United States Attorney. The FBI then recorded a meeting between the inmate and Romano during which Romano described in detail his plans to torture, murder, and mutilate the United States District Judge and Assistant United States Attorney. During the subsequent investigation, two undercover law enforcement officers, posing as hit-men, met with Romano and Romano’s co-conspirator, Dejvid Mirkovic, numerous times at locations on Long Island, including the Correctional Center, to receive instructions regarding and down payments for the murders.
At the first meeting, which took place in August 2012, Romano offered to pay one of the undercover officers $3,000 to assault an individual with whom he had a financial dispute. At Romano’s direction, co-conspirator Mirkovic then met with the other undercover officer and paid him $1,500 as a down payment for the assault. In September 2012, after one of the undercover officers showed proof of the purported assault of the intended victim - in fact, a staged photograph and an identification card - Mirkovic paid the undercover officer the $1,500 balance.
Later that same day, Mirkovic again met with the undercover officer and relayed Romano’s instructions to murder the federal judge and prosecutor. He offered $40,000 for the commission of the two murders. In addition, Romano had Mirkovic instruct the undercover that Romano wanted the federal judge and prosecutor beheaded and the body of the prosecutor mutilated. Mirkovic further relayed that Romano would pay a “bonus” for those services. Over the following weeks, the undercover officer received $22,000 in cash down payments for the murders and was promised payment of the final $18,000 when the murders were completed. At the time of the arrests of Romano and Mirkovic on October 9, 2012, law enforcement officers recovered $18,000 in cash and a loaded 9mm semi-automatic handgun at Mirkovic’s residence in Lake Worth, Florida.In March 2013, Dejvid Mirkovic pleaded guilty to conspiracy to murder and was sentenced to 24 years in prison in August 2013.
Today’s sentence, imposed by United States District Judge John F. Keenan, was the latest development in an investigation handled by Special Agents and Task Force Officers of the Federal Bureau of Investigation, New York Office, under the direction of Assistant Director-in-Charge George Venizelos. The government’s case is being prosecuted by Assistant United States Attorneys Marshall L. Miller, Una A. Dean, and Brian Morris of the Eastern District of New York, under the supervision of U.S. Attorney William J. Hochul of the Western District of New York.Long Island Man Sentenced to Two Terms of Life in Prison for Conspiring to Murder Federal Judge and Federal ProsecutorRead the Press Release
Western District Press Release- Joseph Romano