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11 April 2014
Pottawattamie County, Iowa, Resident Sentenced to 12 Months and 1 Day for Failing to Register as A Sexual OffenderRead the Press Release
COUNCIL BLUFFS, IA - On Friday, April 11, 2014, Sergio Maldonado-Butler, age 29, of Avoca, Iowa, was sentenced by United States District Court Judge Stephanie M. Rose to 12 months and 1 day imprisonment for failing to register with the sex offender registry, announced United States Attorney Nicholas A. Klinefeldt. Judge Rose also ordered Maldonado-Butler to serve a five-year term of supervised release following incarceration.
In August of 2013, law enforcement was called to a disturbance involving Maldonado-Butler, and during the investigation determined that Maldonado-Butler was required to register as a sexual offender based on a 2005 conviction for rape in the State of Oregon.
On December 5, 2014, Maldonado-Butler entered a guilty plea to failing to register with the Pottawattamie County, Iowa, Sheriff's Office as required when he began residing in Avoca, Iowa. Maldonado-Butler had resided in Avoca, Iowa for approximately six months without registering with the Pottawattamie County Sheriff’s Office as required by the Sex Offender Registration and Notification Act.
The investigation was conducted by the Pottawattamie County Sheriff’s Office and the United States Marshal's Service, and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Pierce County Woman Pleads Guilty to Tax Refund Fraud SchemeRead the Press Release
A Pierce County woman pleaded guilty today in U.S. District Court in Tacoma to a wire fraud and aggravated identity theft scheme that netted her more than $95,000, announced U.S. Attorney Jenny A. Durkan. BARBARA HOLLY STAHLMAN, 42, was indicted in February 2013, for a scheme in which she fraudulently claimed tax refunds using other people’s personal information. STAHLMAN has been in custody since August 2013. She faces at least a mandatory minimum two years in prison on the aggravated identity theft charge when she is sentenced by U.S. District Judge Ronald B. Leighton on July 11, 2014.
“Just days ahead of the April 15 tax filing deadline, this case exemplifies the kind of damage we see from these tax refund identity theft schemes,” said U.S. Attorney Jenny A. Durkan. “Whether it is a one person fraud operation, or a sophisticated cyber hack, we are prioritizing these cases to protect taxpayers and the important resources they provide.”
The Justice Department’s Tax Division, in conjunction with the Internal Revenue Service and U.S. Attorneys’ Offices nationwide, has prioritized the investigation and prosecution of individuals who engage in stolen identity refund fraud. In the last year alone, the Department charged more than 880 defendants involved in stolen identity refund fraud, and the IRS reports that it resolved or closed approximately 963,000 cases involving identity theft victims.
“This is an increasingly urgent problem,” said Attorney General Eric Holder. “Its impact can be devastating to families that are counting on legitimate tax refunds that are diverted by identity theft. And especially in recent years, the Justice Department has seen the scale, scope, and execution of these fraud schemes grow significantly.”
According to records filed in the case, STAHLMAN used the Social Security numbers and other personally identifying information to file fraudulent tax returns without the knowledge of the people whose information she was using. STAHLMAN used the tax identification numbers of different companies to claim employment and withheld wages – even though no employment had occurred. In some instances STAHLMAN invented dependents on the tax returns to increase the refund. In all between 2010 and 2013 she submitted 108 false tax returns via turbotax.com and taxACT.com. Forty-four of those returns were accepted by the IRS who fraudulently paid out $95,331. The payments were made to prepaid debit cards and STAHLMAN used them for her own benefit.
“Identity theft is devastating for the victims as it steals the very essence of who we are,” said Kenneth Hines, Special Agent in Charge of IRS Criminal Investigation. “Protecting our tax system is important to us, but we are even more passionate about bringing to justice those crooks that violate innocent people by stealing their identities. IRS special agents together with the Department of Justice have made it a top priority to hunt down and prosecute identity thieves.”
The case was investigated by the Internal Revenue Service Criminal Investigation and is being prosecuted by Assistant United States Attorney David Reese Jennings.
Pair Indicted for Distributing Hundreds of Pounds of Marijuana in Sarasota, Hillsborough, and Polk CountiesRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Aaron Edwin Remaley (39, Riverview) and Michael Allen Babiarz (42, Sarasota) with conspiracy to distribute and to possess with intent to distribute 100 kilograms or more of marijuana. If convicted, each faces a maximum penalty of 40 years in federal prison.
According to the indictment, from at least August 2012 through April 2014, Remaley and Babiarz conspired with each other, and with others, to distribute and to possess with the intent to distribute 100 kilograms or more of marijuana in Sarasota, Hillsborough and Polk Counties.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the Drug Enforcement Administration, Sarasota County Sheriff’s Office, Florida Department of Law Enforcement, Hillsborough County Sheriff’s Office, and the Polk County Sheriff’s Office. It is being prosecuted by Assistant United States Patrick Scruggs.
On June 20, 2012, Jamerson Was Indicted by A Federal Grand Jury on 11 Counts of Willfully Failing to File Quarterly Employment Tax Returns with the IRS and Willfully Failing to Pay the IRS the Federal Income Taxes and the Federal Insurance ContributionsRead the Press Release
WASHINGTON – Assistant Attorney General Kathryn Keneally for the Tax Division and U.S. Attorney David A. Capp of the Northern District of Indiana announced today that Ronald Eugene Jamerson, 56, of Schererville, Ind., was sentenced to serve [XX] months in prison by U.S. District Judge Phillip P. Simon. Jamerson was also ordered to pay $___ in restitution to the Internal Revenue Service (IRS) for unpaid individual income taxes and employment taxes. On Oct. 25, 2013, Jamerson pleaded guilty to one count of willfully failing to truthfully account for, collect and pay over employment taxes to the IRS.According to the plea agreement, the total tax loss owed for all tax periods from 2003 through 2008 is approximately $541,083.
The case was investigated by Special Agents from IRS - Criminal Investigation and prosecuted by Trial Attorneys Erin S. Mellen and Chris J. Maietta of the Tax Division, with valuable support from the U.S. Attorney’s Office in Hammond, Ind.
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Oakland, California Man Sentenced for Role in Marijuana Conspiracy and Money LaunderingRead the Press Release
Follow @SDILNewsAlfonso Hayden, 45, of Oakland, California, who pled guilty on September 25, 2013, in federal court, to being a supply source of marijuana and cocaine, as well as money laundering for a drug distribution organization in Eagle Park, in Madison County, Illinois, between December 2009 and June 2010, was sentenced on April 10, 2014, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Hayden was sentenced to 46 months concurrent prison sentences on each count, followed by concurrent 10-year and 3-year terms of supervised release on the respective count, ordered to pay a $750 fine and a $200 special assessment. To date, twenty-eight other members of the organization have been convicted and sentenced.
Evidence in support of the indictment was obtained in an investigation which was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF initiative is designed to bring federal, state, and local law enforcement agencies and resources together to identify, target and dismantle large national and international drug trafficking organizations. Participating agencies include the Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigations, the U.S. Immigration and Customs Enforcement Office of Homeland Security Investigations (ICE HSI), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Marshal Service, the Granite City Police Department, Fairmount City Police Department, Collinsville Police Department, Fairview Heights Police Department, Caseyville Police Department, Pontoon Beach Department, Park Hills (Missouri) Police Department, the St. Clair County Sheriff’s Department, and the Illinois State Police. This case was prosecuted by Assistant United States Attorney Daniel T. Kapsak.
Nine Charged in Conspiracy <br /> to Steal Millions of Dollars Using “Zeus” MalwareRead the Press Release
Nine alleged members of a wide-ranging racketeering enterprise and conspiracy who infected thousands of business computers with malicious software known as “Zeus” have been charged in an indictment unsealed today in Lincoln, Neb.
Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, U.S. Attorney Deborah R. Gilg for the District of Nebraska and Special Agent in Charge Thomas R. Metz of the FBI’s Omaha Division made the announcement.
The indictment alleges that the “Zeus” malware captured passwords, account numbers, and other information necessary to log into online banking accounts. The conspirators allegedly used the information captured by “Zeus” to steal millions of dollars from account-holding victims’ bank accounts.
The indictment was unsealed in connection with the arraignment this afternoon at the federal courthouse in Lincoln of two Ukrainian nationals, Yuriy Konovalenko, 31, and Yevhen Kulibaba, 36. Konovalenko and Kulibaba were recently extradited from the United Kingdom. All of the defendants were charged by a federal grand jury in August 2012 with conspiracy to participate in racketeering activity, conspiracy to commit computer fraud and identity theft, aggravated identity theft, and multiple counts of bank fraud.
“The ‘Zeus’ malware is one of the most damaging pieces of financial malware that has ever been used,” said Acting Assistant Attorney General O’Neil. “As the charges unsealed today demonstrate, we are committed to making the Internet more secure and protecting the personal information and bank accounts of American consumers. With the invaluable cooperation of our foreign law enforcement partners, we will continue to bring to justice cyber criminals who steal the money of U.S. citizens.”
“In this case, the victims included a Nebraska bank and a Nebraska company,” said U.S. Attorney Gilg. “This demonstrates the global reach of cybercrime and the significant threat to our financial infrastructure. We are grateful for the collaboration of our international and federal law enforcement partners in this complex financial fraud crime."
This case illustrates the vigorous cooperation between national and global law enforcement agencies and sends a strong message to cyber thieves,” said FBI SAC Metz. “The FBI and our international partners will continue to devote resources to finding better ways to safeguard our systems, fortify our cyber defenses and stop those who do us harm."
According to the indictment, the defendants participated in an enterprise and scheme that installed, without authorization, malicious software known as “Zeus” or “Zbot” on victims’ computers. The defendants are charged with using that malicious software to capture bank account numbers, passwords, personal identification numbers, RSA SecureID token codes and similar information necessary to log into online banking accounts. The indictment alleges that the defendants falsely represented to banks that they were employees of the victims and authorized to make transfers of funds from the victims’ bank accounts, causing the banks to make unauthorized transfers of funds from the victims’ accounts.
As part of the enterprise and scheme, the defendants allegedly used as “money mules” residents of the United States who received funds transferred over the Automated Clearing House network or through other interstate wire systems from victims’ bank accounts into the money mules’ own bank accounts. These “money mules” then allegedly withdrew some of those funds and wired the money overseas to conspirators.
According to court documents unsealed today, Kulibaba allegedly operated the conspirators’ money laundering network in the United Kingdom by providing money mules and their associated banking credentials to launder the money withdrawn from U.S.-based victim accounts. Konovalenko allegedly provided money mules’ and victims’ banking credentials to Kulibaba and facilitated the collection of victims’ data from other conspirators.
The following four identified defendants remain at large: • Vyacheslav Igorevich Penchukov, 32, of Ukraine, who allegedly coordinated the exchange of stolen banking credentials and money mules and received alerts once a bank account had been compromised.
• Ivan Viktorvich Klepikov, 30, of Ukraine, the alleged systems administrator who handled the technical aspects of the criminal scheme and also received alerts once a bank account had been compromised.
• Alexey Dmitrievich Bron, 26, of Ukraine, the alleged financial manager of the criminal operations who managed the transfer of money through an online money system known as Webmoney.
• Alexey Tikonov, of Russia, an alleged coder or developer who assisted the criminal enterprise by developing new codes to compromise banking systems.
The indictment also charges three other individuals as John Doe #1, John Doe #2 and John Doe #3.
The case was investigated by the FBI’s Omaha Cyber Task Force. The Metropolitan Police Service of the United Kingdom, the National Police of the Netherlands’s National High Tech Crime Unit and the Security Service of Ukraine provided significant assistance in the investigation.
The case is being prosecuted by Trial Attorney William A. Hall, Jr. of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Steven A. Russell of the District of Nebraska. The Office of International Affairs in the Justice Department’s Criminal Division provided valuable assistance with the extradition.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Related Materials:
Konovalenko Complaint
Konovalenko Superseding IndictmentMontgomery County Man Appears in Court on Child Porn ChargeRead the Press Release
WICHITA, KAN. A Montgomery County man appeared in federal court here today on a child pornography charge, U.S. Attorney Barry Grissom said.
Daniel Hosier, 34, Cherryvale, Kan., is charged with one count of distributing child pornography and one count of possessing child pornography. The crimes are alleged to have occurred in March and July 2013 in Montgomery, Kan.
If convicted, he faces a penalty of not less than five years and not more than 20 years in federal prison and a fine up to $250,000 on the distribution counts, and a maximum penalty of 10 years and a fine up to $250,000 on the possession count. The Montgomery County Sheriff’s Office and the FBI investigated. Assistant U.S. Attorney Jason Hart is prosecuting.
Maryland Man Sentenced to 25 Years in Prison for Sexually Assaulting Woman in Northwest Washington-DNA Later Tied Him to the Crime-Read the Press Release
WASHINGTON - Glenn A. Smith, Jr., 37, of Silver Spring, Md., was sentenced today to 25 years in prison for sexually assaulting a 22-year-old woman in 2010, U.S. Attorney Ronald C. Machen Jr. announced.
Smith was found guilty by a jury in December 2012, following a trial in the Superior Court of the District of Columbia, of two counts of first-degree sexual abuse. He was sentenced by the Honorable Thomas J. Motley. Upon completion of his prison term, Smith will be placed on five years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, on June 13, 2010, the victim was walking down Wisconsin Avenue NW, after leaving a party in the Friendship Heights neighborhood at about 2:30 a.m. At the time, she had just graduated from Georgetown University with highest honors in her major. Smith grabbed her behind a building, turned her away from him, and choked her. He then pushed the victim to the ground and sexually assaulted her. When the assault was over, Smith took the victim’s underwear and wiped her with it, and then fled, taking the underwear.
The victim immediately reported the assault to police and was taken to Washington Hospital Center, where she was treated for injuries and swabbed for DNA. The case was cold until May 2011, when Smith was identified as a suspect through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. Smith’s DNA was in the system as a result of an earlier conviction in a case involving identity fraud. MPD detectives obtained a sample of the defendant’s DNA, and it matched the DNA left behind by the assailant in 2010.
In announcing the sentence, U.S. Attorney Machen commended detectives from the Metropolitan Police Department’s Sexual Assault Unit, Second District, and officers from the Forensic Science Division. He also expressed appreciation for the efforts of Victim/Witness Advocate Veronica Vaughn; Paralegal Specialists Jason Manuel, Tiffany Jones, and Cynthia Muhammad; Karen Lee-Putt of the Finance office; John Marsh of the Criminal Investigations Unit, and Victim/Witness Specialists David Foster and Katina Adams-Washington. He particularly commended the work of Leif Hickling and the entire Litigation Support Staff for a strong team effort. Lastly, Mr. Machen thanked Assistant U.S. Attorney Amy Zubrensky, who investigated and tried the case, and Assistant U.S. Attorney Kenya Davis, who co-tried the case.
14-085Maryland Man Sentenced to 25 Years in Prison for Sexually Assaulting Woman in Northwest Washington-DNA Later Tied Him to the Crime-Read the Press Release
WASHINGTON - Glenn A. Smith, Jr., 37, of Silver Spring, Md., was sentenced today to 25 years in prison for sexually assaulting a 22-year-old woman in 2010, U.S. Attorney Ronald C. Machen Jr. announced.
Smith was found guilty by a jury in December 2012, following a trial in the Superior Court of the District of Columbia, of two counts of first-degree sexual abuse. He was sentenced by the Honorable Thomas J. Motley. Upon completion of his prison term, Smith will be placed on five years of supervised release. He also must register as a sex offender for the rest of his life.
According to the government’s evidence, on June 13, 2010, the victim was walking down Wisconsin Avenue NW, after leaving a party in the Friendship Heights neighborhood at about 2:30 a.m. At the time, she had just graduated from Georgetown University with highest honors in her major. Smith grabbed her behind a building, turned her away from him, and choked her. He then pushed the victim to the ground and sexually assaulted her. When the assault was over, Smith took the victim’s underwear and wiped her with it, and then fled, taking the underwear.
The victim immediately reported the assault to police and was taken to Washington Hospital Center, where she was treated for injuries and swabbed for DNA. The case was cold until May 2011, when Smith was identified as a suspect through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool. Smith’s DNA was in the system as a result of an earlier conviction in a case involving identity fraud. MPD detectives obtained a sample of the defendant’s DNA, and it matched the DNA left behind by the assailant in 2010.
In announcing the sentence, U.S. Attorney Machen commended detectives from the Metropolitan Police Department’s Sexual Assault Unit, Second District, and officers from the Forensic Science Division. He also expressed appreciation for the efforts of Victim/Witness Advocate Veronica Vaughn; Paralegal Specialists Jason Manuel, Tiffany Jones, and Cynthia Muhammad; Karen Lee-Putt of the Finance office; John Marsh of the Criminal Investigations Unit, and Victim/Witness Specialists David Foster and Katina Adams-Washington. He particularly commended the work of Leif Hickling and the entire Litigation Support Staff for a strong team effort. Lastly, Mr. Machen thanked Assistant U.S. Attorney Amy Zubrensky, who investigated and tried the case, and Assistant U.S. Attorney Kenya Davis, who co-tried the case.
14-085Man Sentenced to Prison for Drug and Immigration CrimesRead the Press Release
James L. Santelle, United States Attorney for the Eastern District of Wisconsin, announced that on April 4, 2014, Jose Antonio Cortez-Ruiz (age: 26) was sentenced to 20 months in federal prison by Chief United States District Judge William C. Griesbach. Cortez-Ruiz had previously entered guilty pleas to counts of distribution of cocaine and aggravated illegal re-entry into the United States.
According to the plea agreement and other documents filed with the court, Cortez-Ruiz re-entered the country illegally in 2010 after being removed following his conviction for a felony, settling in the Chicago area. In October 2013, he was arrested in Manitowoc County after delivering a half-kilogram of cocaine to a confidential informant in exchange for $15,000.
The arrest of Cortez-Ruiz led to the arrest and prosecution of two high-level Chicago area drug suppliers currently being prosecuted in Cook County Circuit Court.
The case was investigated by Special Agents from the Drug Enforcement Administration and the Manitowoc County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
Man Charged with Murder on the Meskwaki Nation SettlementRead the Press Release
Gordon Lasley, Jr., 25, from the Meskwaki Nation Settlement, Iowa, has been charged with two counts of first degree murder in “Indian country.” The charges are contained in Indictment filed on April 9, 2014, in United States District Court in Cedar Rapids.
The Indictment alleges that, on or about February 5, 2014, Lasley murdered two people, Gordon Lasley, Sr. and Kim Renee Lasley, by striking them with a machete.If convicted of one or both counts, Lasley faces a mandatory sentence of life imprisonment. Under federal law, unless the governing body of a federally recognized tribe has elected to have the death penalty apply to offenses that occur on the tribe’s “Indian country,” the death penalty is not available as a punishment in federal court. The Sac and Fox Tribe of the Mississippi in Iowa, the tribe that resides on the Meskwaki Nation Settlement, has not elected to have the death penalty apply to offenses committed on the Settlement.
Lasley appeared today in federal court in Cedar Rapids for arraignment. Lasley was previously ordered held without bond and will remain in the custody of the United States Marshals service. Lasley’s trial has been scheduled for June 9, 2014.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
In 2010, the Department of Justice launched an initiative making public safety in tribal communities a top priority. The goal of the initiative is to help tribes build and sustain safe and secure communities across the country. Information about the initiative is available at http://www.justice.gov/tribal.
The case is being prosecuted by Assistant United States Attorneys CJ Williams and Anthony Morfitt and was investigated by the Meskwaki Nation Tribal Police Department, the Tama County Sheriff’s Office, the Iowa Division of Criminal Investigation, and the Federal Bureau of Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 14-CR-00045.
Long Island Fisherman Pleads Guilty to Mail Fraud, Wire Fraud, and Records FalsificationRead the Press Release
Anthony Joseph, a commercial fisherman from Levittown, N.Y., pleaded guilty today in federal court in Central Islip, N.Y., to federal violations stemming from his role in systematically underreporting fluke (summer flounder) that was being harvested as part of the federal Research Set-Aside (RSA) Program, the Justice Department’s Environment and Natural Resources Division announced.
Joseph, the former operator of the dragger F/V Stirs One, pleaded guilty to one count of mail fraud, two counts of wire fraud, and one count of falsification of federal records for knowingly submitting 158 falsified fishing logs, known as fishing vessel trip reports (FVTRs) and aiding and abetting the submission of 167 falsified dealer reports from June 2009 through December 2011, as part of a scheme to defraud the United States of overharvested and underreported fluke.
As part of the plea deal, Joseph agreed to be subject to between $629,000 and $692,000 in combined fine and restitution. The defendant also agreed to make $15,000 in community service payments to the Cornell Cooperative Extension of Suffolk County, N.Y., in order to pay for the enhancement of fluke habitat through the C.C.E.’s Marine Meadows Program. The jointly proposed sentence includes relinquishment of federal fishing permits, a ban on participation in the RSA Program, and a ban from working on the Stirs One. The court will hear sentencing recommendations regarding non-agreed terms at a hearing set for Oct. 7, 2014.
“Today’s conviction demonstrates that we will hold those who violate the integrity of the Research Set-Aside Program accountable under the law and in doing so make sure that this valuable resource remains available to everyone and sustainable for future generations,” said Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.
“Our office takes these violations very seriously,” said Logan Gregory, Special Agent in Charge of the National Oceanic and Atmospheric Administration (NOAA) Office of Law Enforcement’s Northeast Division. “The ability to catch and sell fish from a limited set aside quota to help fund scientific research should be considered a limited privilege, not an entitlement. The unlawful behavior shown in this case undermines the purpose and accuracy of the set-aside program as well as impacts the profitability of these fish for law-abiding fishermen who comply with the regulations.”
Under NOAA regulations, all of the Stirs One’s catch had to be reported to NOAA on FVTRs. During the years 2009, 2010, and 2011, the Stirs One principally targeted fluke. However, under the captaincy and with the knowledge of Anthony Joseph, the vessel exceeded its relevant federal and New York State quotas for fluke for at least 158 trips. These illegal overages totaled between 296,000 and 310,000 pounds of fluke worth between approximately $623,000 and $632,000.
In order to cover up the illegal fluke harvesting, Anthony Joseph falsified the FVTRs that he personally mailed to NOAA. He also utilized the exempted fisheries permit quota that was acquired through the federal RSA Program as a mask for his fluke overages. According to court documents, the defendant characterized the RSA Program as “a license to steal” and remarked that during the period of 2009-2011, he referred to the Research Set-Aside Program with the nickname, “Research Steal-Aside.”NOAA regulations also required the first purchasers of seafood, i.e., directly from the fishing vessel, to report their purchases to NOAA on an electronic form known as a dealer report. The dealer reports include information such as date of landing, port of landing, catch vessel, corresponding FVTR numbers, commercial grade, species, price and weight. NOAA utilizes the data in the dealer reports to set quotas and implement other management measures designed to ensure a sustainable fisheries. The dealer reports also serve as a check on the information that is submitted in FVTRs. In other words, in order to effectuate his scheme, Anthony Joseph needed to ensure that corresponding false dealer reports were being submitted that contained the same false information as was contained on the falsified FVTRs. A mismatch would have indicated a serious error or fraud, and would have been a red flag for fisheries managers. Accordingly, during June 2009 to December 2011, the defendant schemed with two other fish dealers to submit false dealer reports in furtherance of the fraud. In doing so, the defendant aided and abetted Fish Dealer X and Fish Dealer Y in their internet submission of a total of at least 167 false dealer reports from computers in New York to NOAA’s Regional Fisheries Office in Gloucester, Mass.
The case was investigated by agents of NOAA’s National Marine Fisheries Service, with assistance from the New York State Department of Environmental Conservation Police. The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section, Environment and Natural Resources Division.
Local Man Pleads Guilty to Federal Firearms ChargesRead the Press Release
St. Louis, MO – BRALAND NORMAN pled guilty to charges involving the December 2013 shooting on Delmar Avenue in St. Louis.
According to the facts filed with the court, on December 29, 2013, Norman was the passenger in a vehicle headed southbound on Skinker but stopped at a red light at Delmar. As his vehicle was stopped, a blue SUV came up behind it and an individual got out and fired numerous rounds into Norman’s vehicle. Norman was shot in his back and the driver, Allie Harper, was shot numerous times. The shooter got back into the SUV, which then left the scene. Harper then drove his vehicle through the intersection and proceeded to run into a vehicle headed westbound on Delmar. Harper remained in the car but Norman climbed out of the vehicle through the rear window, which had been shot out, and took his 9mm Semi-automatic pistol with 27 rounds in the magazine. Norman ran from the scene eastbound on Delmar, discarded the firearm under a vehicle which was parked right outside of the Moonrise Hotel, entered the hotel and went into the men’s room. After trying to clean up a bit as he was bleeding, he left the restroom and convinced the valet that he left something in his car, which the valet had just parked for another patron. The valet gave Norman the keys and without permission of the owner, Norman left the parking lot with the vehicle. The stolen vehicle was recovered on January 25, 2014.
With his plea Norman admitted that he was a previously convicted of a felon, and as such is forbidden by law to own or possess a firearm.
Norman, St. Louis City, pled guilty to one felony count of being a felon in possession of a firearm before United States District Judge Catherine D. Perry. Sentencing has been set for July 2014.
He now faces a maximum penalty of 10 years in prison and/or fines up to $250,000. In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Kent Tax Preparer Indicted for Wire Fraud, False Claims, and Aggravated Identity TheftRead the Press Release
A Kent, Washington tax preparer was arrested this morning, following his indictment for a tax fraud scheme in which he falsely claimed tax refunds while victimizing his clients, announced U.S. Attorney Jenny A. Durkan. RYAN LANH YANN, 60, will appear in U.S. District Court in Seattle at 2:00 PM today on ten counts of wire fraud, four counts of false, fictitious or fraudulent claims, and two counts of aggravated identity theft. The indictment alleges YANN collected more than $300,000 with his illegal scheme.
According to the indictment, YANN operated a tax preparation business in Kent and between 2009 and 2012 prepared income tax returns for clients – many of whom were immigrants who were not familiar with the U.S. tax system and did not have strong English language skills. YANN would provide his clients one version of their tax return, while filing a different version of the tax return with the IRS. On the filed tax return, YANN would claim additional false deductions, or dependents, inflating the size of the tax refund. YANN would keep the additional refund money for himself. In some instances, YANN would allegedly tell a client he owed taxes, and then keep the money the client provided. He would then file a second version of the return in which he claimed a tax refund, which he kept for his own use.
The wire fraud counts relate to the false tax returns filed by YANN. The false claims counts detail specific false tax refund claims ranging from about $500 to more than $2300. The aggravated identity theft charges relate to his use of his clients’ identifying information as part of his fraud scheme.
Aggravated identity theft is punishable by a mandatory minimum two-year prison term in addition to any other sentence imposed in the case. Wire fraud is punishable by up to 20 years in prison. Making false and fictitious claims is punishable by up to five years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Internal Revenue Service-Criminal Investigation, the United States Postal Inspection Service, and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Thomas Woods.
Jacksonville Man Charged with Federal Human Trafficking, Drug, and Firearms ViolationsRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Mario Javon Heatly (32, Jacksonville) with human trafficking, drug, and firearms offenses. If convicted on all counts, Heatly faces a maximum penalty of life in federal prison. The indictment also notifies Heatly that the United States intends to forfeit three firearms recovered by law enforcement.
According to the indictment, between March and November 2013, Heatly used force, threats of force, fraud, and coercion to cause a female victim to engage in commercial sex acts. The indictment also alleges that on different occasions, in 2013 and 2014, Heatly used local hotel rooms for the purposes of manufacturing, distributing, and using controlled substances, including cocaine, cocaine base, and heroin. It further alleges the he unlawfully possessed firearms during his stays at the Jacksonville-area hotels. Heatly was previously convicted of eight separate felonies in Duval County, and therefore prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by a joint human trafficking task force comprised of investigators from the Jacksonville Sheriff’s Office and the FBI. It will be prosecuted by Assistant United States Attorney Mac D. Heavener, III.
Jackson Businessman Indicted for Bankruptcy FraudRead the Press Release
Jackson, Miss - William D. “Butch” Dickson, 58, of Jackson, was indicted by a federal grand jury on April 8, 2014 on six counts of bankruptcy fraud, six counts of bank fraud and five counts of wire fraud, announced U.S. Attorney Gregory K. Davis and FBI Special Agent in Charge Daniel McMullen.
According to the indictment, Dickson’s company, Community Home Financial Services (CHFS), is in Chapter 11 Bankruptcy in the Southern District of Mississippi Bankruptcy Court. Dickson is alleged to have illegally transferred $9,095,000 out of various bankruptcy escrow accounts to an account he controlled at Banco Panemeno, in Panama City, Panama. The indictment alleges that Dickson relocated his businesses to Panama and Costa Rica, and began instructing CHFS customers to submit their monthly mortgage payments to addresses in Las Vegas, Nevada and Miami, Florida for the purpose of having those payments re-shipped to Costa Rica, in order to prevent the Bankruptcy Court from acquiring CHFS income.
As part of the Bankruptcy Proceeding, the indictment alleges that all of CHFS assets, both the $9,095,000 transferred to Panama as well as the incoming mortgage payments from CHFS customers, were under the control of the Bankruptcy Court and were to be retained for the benefit of CHFS creditors. Dickson was detained in Panama by Panamanian Immigration officers and was expelled to the United States on March 12, 2014. Dickson was arrested on a criminal complaint and appeared before a U.S. Magistrate Judge in Miami, Florida on March 19, 2014 where he was ordered to be detained by the U.S. Marshal without bond and returned to the Southern District of Mississippi. His next court date in Jackson, Mississippi has not been set.
If convicted, Dickson faces maximum penalties of five years in prison on each count of bankruptcy fraud, thirty years on each count of bank fraud, and twenty years on each count of wire fraud. He also faces maximum fines of $250,000 on each count.
FBI Special Agent in Charge Daniel McMullen stated: “Bankruptcy protection is a privilege afforded to individuals who have suffered financial setbacks, appropriately allowing them to get a fresh start. It is not a means for debtors to fraudulently conceal their assets from legitimate creditors. When this privilege is abused, it threatens the integrity of the bankruptcy process. The FBI is committed to combating bankruptcy fraud and abuse, thereby ensuring the public’s continued trust in the bankruptcy process.”
The public is reminded that an indictment is a formal charge that a defendant has committed a violation of the federal criminal laws. All defendants are presumed innocent unless and until proven guilty.
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Indiana Physician Sentenced for Failing to Pay Employment TaxesRead the Press Release
Assistant Attorney General Kathryn Keneally for the Tax Division and U.S. Attorney David A. Capp of the Northern District of Indiana announced today that Ronald Eugene Jamerson, 56, of Schererville, Ind., was sentenced to serve 12 months and one day in prison by U.S. District Judge Phillip P. Simon. Jamerson was also ordered to pay $541,083 in restitution to the Internal Revenue Service (IRS) for unpaid individual income taxes and employment taxes, which represents the total tax loss owed for all tax periods from 2003 through 2008, according to the plea agreement. On Oct. 25, 2013, Jamerson pleaded guilty to one count of willfully failing to truthfully account for, collect and pay over employment taxes to the IRS.
On June 20, 2012, Jamerson was indicted by a federal grand jury on 11 counts of willfully failing to file quarterly employment tax returns with the IRS and willfully failing to pay the IRS the federal income taxes and the Federal Insurance Contributions Act taxes due and owing from the second quarter of 2006 through the fourth tax quarter of 2008. Jamerson is an otolaryngologist (ear, nose and throat surgeon) who opened his own medical practice in the late 1990s. According to court pleadings, Jamerson deducted and collected from his employees’ paychecks federal income taxes and employment taxes in the amount of $63,929 over the 11 tax quarters, but failed to file the employment tax returns and pay over the related employment taxes.
The case was investigated by Special Agents from IRS - Criminal Investigation and prosecuted by Trial Attorneys Erin S. Mellen and Chris J. Maietta of the Tax Division, with valuable support from the U.S. Attorney’s Office in Hammond, Ind.
Hayward Tax Return Preparer Indicted in Tax Fraud SchemeRead the Press Release
OAKLAND – Runnveer Singh, made his initial appearance today in federal court after being charged with 24 counts of aiding and assisting in the filing false tax returns, 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, from about April 15, 2010, through April 17, 2012, Singh willfully prepared and presented U.S. Individual Income Tax Returns, Forms 1040, to the IRS, on behalf of numerous taxpayers. False items on the returns included Schedule A deductions, Schedule C Expenses and Form 8863 – Part IV and Part V – Refundable and Nonrefundable Education Credits.
Singh, of Hayward, was indicted on March 25, 2014. He was arrested this morning and made his initial appearance before the Honorable Kandis A. Westmore, United States Magistrate Court Judge in Oakland. Singh was released on $100,000 bond. Singh’s next court appearance is scheduled for May 9, 2014 at 9:30 a.m. before the Honorable Jon S. Tigar, United States District Court Judge in Oakland.
The maximum penalty for each count assisting in filing tax returns in violation of Title 26, U.S.C § 7206(2) is three years in prison and a fine of $250,000.
Assistant US Attorney Thomas Moore is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.
(Singh indictment )
Government Files Sentencing Memorandum in United States V. Robert MericleRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced today that it filed the Government's Sentencing Memorandum in United States v. Mericle.
Former Tax Preparer Extradited and Sentenced for Filing False ReturnsRead the Press Release
United States Attorney Deborah R. Gilg announced that Martin M. Mazarura, 33, was sentenced in the United States District Court in Omaha for preparing false individual income tax returns. The Honorable Joseph F. Bataillon sentenced Mazarura to the custody of the United States Bureau of Prisons for a year and a day. He was ordered to pay restitution in the sum of $82,738. After his release from prison Mazarura is to begin a one year term of supervised release although he is likely to be returned to Canada following his release from the Bureau of Prisons.
In 2006 Mazarura was engaged in the business of preparing individual income tax returns from his office at 72nd and Blondo in Omaha. The IRS Fraud Detection Center noted that Mazarura had submitted a number of returns containing inflated credits. The case was referred to the IRS Criminal Investigation Division.
The criminal investigation focused on 18 tax returns prepared by Mazarura. The tax loss to the United States from these 18 returns totaled $82,738. On these returns Mazarura claimed Telephone Excise Tax credits, additional Child Care credits, and Earned Income Credits when they were not applicable or, when applicable, claimed credits well in excess of the entitled amount. Mazarura provided his customers with dependents on their returns who were not dependents and frequently were unknown to the customer.
Mazarura is a citizen of Zimbabwe. He left the United States and took up residence in Canada. He was extradited from Canada upon the understanding that after his prison sentence he be allowed the opportunity to return to Canada.
“While most return preparers provide excellent service to their clients, a few unscrupulous tax preparers file false and fraudulent returns to defraud the government, the tax-paying public and their own clients,” said Sybil Smith, Special Agent in Charge of IRS Criminal Investigation.
Former Hidalgo County Sheriff’s Office Chief of Staff Pleads GuiltyRead the Press Release
McALLEN, Texas - Maria Patricia Medina, 40, has entered a guilty plea to one count of misprison of a felony, announced United States Attorney Kenneth Magidson. Medina was the former chief of staff for former Hidalgo County Sheriff Lupe Trevino.
The investigation revealed that during 2011 and 2012, the former sheriff received cash contributions from alleged drug trafficker, Tomas “El Gallo” Gonzalez. Medina, who was the chief of staff and campaign treasurer, admitted she assisted Trevino in the concealment of the donations by falsifying election records.
Chief U.S. District Judge Ricardo H. Hinojosa accepted the plea today and has set sentencing for July 3, 2014. At that time, Medina faces up to three years in federal prison and a potential fine of $250,000.
The investigation leading to the charges was conducted by Homeland Security Investigations, Drug Enforcement Administration and Texas Department of Public Safety, Rangers Division. Assistant United States Attorneys James Sturgis and Anibal Alaniz prosecuted the case.Former Employee Pleads GuiltyTo Stealing $289,000 from A Wichita BankRead the Press Release
WICHITA, KAN. A former employee has pleaded guilty to embezzling at least $289,000 from a Wichita bank, U.S. Attorney Barry Grissom said.
Lisa Marie Evans, 43, Wichita, Kan., pleaded guilty to one count of embezzlement. In her plea, she admitted that from 2011 to 2013 she stole the money while working for Southwest National Bank in Wichita. She was responsible for balancing the bank vault on a daily basis. A surprise audit in April 2013 revealed the theft. Investigators examined security footage of the vault that showed Evans taking money from the vault and hiding it on her person.
Sentencing is set for June 30. She faces a maximum penalty of 30 years in federal prison and a fine up to $250,000. Grissom commended the FBI and Assistant U.S. Attorney Aaron Smith for their work on the case.Former Council Bluffs, Iowa, Resident Sentenced to 21 Months for Failing to Register as A Sexual OffenderRead the Press Release
COUNCIL BLUFFS, IA - On Friday, April 11, 2014, Jeramie L. Reazer, age 37, last known address in Omaha, Nebraska, was sentenced to 21 months imprisonment for failing to register with the sex offender registry by United States District Court Judge Stephanie M. Rose, announced United States Attorney Nicholas A. Klinefeldt. Judge Rose also ordered Reazer to serve a five-year term of supervised release following incarceration.
In May of 2013, law enforcement determined that Reazer had been residing in Mills County, Iowa, for approximately a month without registering with the Mills County Sheriff's Office as required by the Sex Offender Registration and Notification Act.
Reazer was required to register with the Mills County Sheriff’s Office as a result of a conviction for Sexual Assault in the Third Degree in Douglas County, Nebraska in 2005. On November 25, 2014, Reazer entered a guilty plea to failing to register with the Mills County, Iowa, Sheriff's Office as required when he began residing in rural, Mills County, Iowa.
The investigation was conducted by the Douglas County Nebraska, Sheriff’s Office and the United States Marshal's Service and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of Iowa.
(Download Press Release )
Florida Woman Sentenced to 27 Months in Prison for Role in Real Estate Investment SchemeRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that LORETTA SENECA, 51, of Boynton Beach, Fla., was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 27 months of imprisonment, followed by three years of supervised release, for her role in a real estate investment scheme. SENECA was also ordered to serve the first six months of supervised release in home confinement, and to perform 120 hours of community service.
According to court documents and statements made in court, between approximately November 2006 and December 2007, Robert Rivernider, Robert Ponte and SENECA engaged in a real estate investment conspiracy that defrauded both lenders and individuals they recruited. Rivernider is SENECA’s brother. As part of the scheme, Rivernider, Ponte and others recruited victim borrowers to take out financing to purchase various investment properties, primarily in Tennessee and Florida, with financing from victim lenders. Rivernider and Ponte typically represented to borrowers that these properties would be passive investments and that Rivernider and Ponte would be responsible for the details of the purchase, rental, maintenance and payment of the mortgages on the properties. The co-conspirators made false representations to the victim borrowers that Rivernider and Ponte would arrange for the purchase of the properties by the borrowers at markedly discounted values. In fact, Rivernider and Ponte frequently marked up the purchase price of the properties to the victim borrowers, often by as much as 25 percent, without disclosing the increase in the purchase price. Rivernider, Ponte and others also falsely represented that the investment properties would return to the victim borrowers sufficient monies to cover the carrying costs, as well as reduce the borrowers’ other debt burden.
Rivernider, Ponte, SENECA and others victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders. SENECA, a trained mortgage broker, was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the victim lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties brokered by Rivernider to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.
This scheme involved at least 100 properties, and the victim lending institutions suffered more than $21 million in losses.
On February 25, 2013, SENECA pleaded guilty to one count of conspiracy and one count of wire fraud.
Rivernider and Ponte pleaded guilty to multiple charges stemming from both this scheme and a separate scheme that defrauded investors out of approximately $2.2 million. They are currently serving prison terms of 144 months and 90 months, respectively.
Judge Chatigny ordered SENECA to pay restitution in the amount of $5 million, and the government is seeking an order of full restitution against Rivernider and Ponte.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys John H. Durham and Christopher W. Schmeisser.
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(203) 821-3722 [email protected]Final Two Defendants Sentenced in Identity Theft Tax Refund Fraud Scheme Involving Thousands of Patients’ Personal Identity InformationRead 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), Miami Field Office, and Jose A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), announce that Michael Ali Bryant, Sr., 41, and his wife, Latina Rashawn Bryant, 43, both of Lauderdale Lakes, were sentenced for their participation in a stolen identity tax refund scheme. Michael Bryant was sentenced to 144 months in prison, to be followed by three years of supervised release. Latina Bryant was sentenced to 48 months in prison, to be followed by three years of supervised release.
Both defendants previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Michael Bryant also previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); and Latina Bryant previously pled guilty to one count of using an unauthorized access device, in violation of Title 18, United States Code, Section 1029(a)(2).
Co-defendant Marquis Onigirin Moye, 24, of Pompano Beach, was sentenced on March 28, 2014 to 54 months in prison, to be followed by three years of supervised release. Moye previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Co-defendants Tiffany Shenae Cooper, 33, of Deerfield Beach, and Angela Dione Rosier, 41, of Coral Springs, were sentenced on February 28, 2014. Cooper was sentenced to 57 months in prison, to be followed by three years of supervised release. Rosier was sentenced to 49 months in prison, to be followed by three years of supervised release. The court also ordered both defendants to pay $129,390.06 in restitution to the IRS and the medical services provider whose database had been breached. Cooper previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Rosier previously pled guilty to one count of conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2).
According to court documents, a confidential source (CS) initially approached Michael Bryant and inquired about purchasing narcotics. Bryant told the CS that he did not have any narcotics but that he did have personal identity information (PII) that he was willing to sell to the CS. The CS made a controlled purchase of ten pages (each page containing approximately 20 to 25 names) of PII. Bryant instructed the CS on how to commit tax fraud using the PII, and provided the CS with specific instructions on what information to enter into the web pages of the internet-based tax services to obtain a tax refund. An examination of the PII revealed that it was from a medical services provider.
Rosier was an employee of the medical services provider. Cooper spoke to Rosier to obtain user names and passwords for current employees of the medical services provider. Cooper admitted to illegally logging on to the medical services provider’s computer network and downloading PII for the purpose of committing various types of fraud. She was assisted in her activities by Rosier and co-defendant Moye.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
Essex County, N.J., Man Convicted of Being A Felon in Possession of A FirearmRead the Press Release
NEWARK, N.J. - An Essex County, N.J., man with a felony criminal record has been convicted by a federal jury for carrying a loaded semi-automatic pistol, U.S. Attorney Paul J. Fishman announced today.
Victor Lopez, 25, of Newark, was convicted of one count of being a felon in possession of a firearm following a three-day trial before U.S. District Judge Anne E. Thompson in Newark federal court. The jury deliberated for four hours before returning the guilty verdict.
According to documents filed in this case and the evidence at trial:
Officers of the Passaic Police Department responded to a 911 call on Sept. 13, 2012, about a possible burglary in progress at an apartment building in Passaic, N.J., where they encountered Lopez leaving the building
Officers questioned the Lopez, who appeared nervous, and found a gun in his back pocket. The .380 caliber semi-automatic handgun was loaded with seven bullets, including one in the chamber. Four of the bullets were hollow-point rounds.
The charge of being a felon in possession carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for June 23, 2014.
U.S. Attorney Fishman credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of, and officers of the City of Passaic Police Department, under the direction of Deputy Chief Rosario J. Capuana, with the investigation.
The government is represented by Assistant U.S. Attorneys Sara F. Merin and Jonathan W. Romankow of the U.S. Attorney=s Office Criminal Division in Newark.
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Defense counsel: Vincent Sanzone Jr. Esq., Elizabeth, N.J.
Eastern Shore Cocaine Dealer Sentenced to over 10 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Ranson Chandler, Jr., age 37, of Salisbury, Maryland, today to 123 months in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute cocaine, and for possession of a firearm in furtherance of a drug trafficking crime.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Special Agent in Charge Gary Tuggle of the Drug Enforcement Administration, Baltimore District Office; Colonel Marcus L. Brown, Superintendent of the Maryland State Police; Wicomico County Sheriff Michael A. Lewis; Salisbury Police Chief Barbara Duncan; Chief Michael Phillips of the Fruitland Police Department; and Wicomico County State’s Attorney Matthew Maciarello.
According to Chandler’s plea agreement, an investigation by the Drug Enforcement Administration and the Wicomico County Narcotics Task Force established that during the months of October and November 2012, Ranson Chandler, Jr., conspired with Terron Lamont Crump and others to distribute cocaine on the Eastern Shore of Maryland.Information obtained through wiretaps demonstrated that on multiple occasions Chandler conducted or attempted to conduct narcotics transactions with Crump and others.
For example, in an intercepted call on November 27, 2012, Chandler and Crump discussed the price of “the hard knock,” which Chandler was attempting to procure for a third party. Crump told Chandler that the price was “one even,” or $1,000 per ounce, but that he (Crump) would not be able “to get to it” until the following day. At approximately 10 a.m. the next morning, officers observed a drug transaction between Chandler and Crump near the Route 50 Diner in Salisbury. After the transaction took place, the officers attempted to arrest Chandler who, while attempting to flee, crashed his vehicle into a vehicle occupied by three law enforcement officers.
Chandler was arrested. During a search officers recovered approximately 68 grams of cocaine from Chandler’s pants pocket and an additional 197 grams of cocaine from his vehicle, as well as a loaded (and stolen) 9 mm handgun recovered from the center console of Chandler’s vehicle.
The evidence showed that that it was foreseeable to Chandler that he and his co-conspirators distributed, more than 500 grams of cocaine during the conspiracy, which operated from June 2012 through and November 28, 2012.
Terron Lamont Crump, age 35, of Fruitland, Maryland, pleaded guilty to his role in the conspiracy and was scheduled to a year and a day in prison.
United States Attorney Rod J. Rosenstein praised the DEA and Wicomico County Narcotics Task Force comprised of the Maryland State Police, Wicomico County Sheriff’s Office, Salisbury Police Department, Fruitland Police Department and the Wicomico County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted this Organized Crime Drug Enforcement Task Force case.
East Bay Doctor Indicted for Health Care Fraud and Distribution of Controlled SubstancesRead the Press Release
OAKLAND – An eight count indictment was unsealed in federal court this morning charging Dr. Toni Daniels with conspiracy to commit health care fraud, conspiracy to distribute and dispense controlled substances, distribution of controlled substances, and willful failure to file a tax return, announced U.S. Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, U.S. Department of Health & Human Services, Office of Inspector General Special Agent in Charge Ivan Negroni, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.
According to the Indictment, from October 2010 through April 2011, Toni Daniels was a self-employed medical doctor who met with customers at various retail establishments in and around Oakland, including Burger King, Chicken and Waffles, Dick’s Donuts, and Starbucks. During these meetings, Daniels allegedly sold prescriptions for oxycodone, hydrocodone, and other controlled substances, in exchange for cash payments, without first determining whether the purchasers had any medical need for these prescriptions. The Indictment further alleges that Daniels knew that many of her customers used Medicare, Medi-Cal, and other private health insurance plans to cover the cost of the medically unnecessary medications that she prescribed. Between Oct. 15, 2010 and April 15, 2011, Medicare and Medi-Cal paid over $64,000 in false and fraudulent claims for drugs prescribed by Daniels. The Indictment also alleges that Daniels made a gross income of $143,869 during calendar year 2010 and willfully failed to file an income tax return for that year.
Daniels, 62, of Berkeley, was indicted on March 27, 2014. She was arrested last night and made his initial appearance today before the Honorable Kandis A. Westmore, United States Magistrate Court Judge in Oakland. Daniels was remanded into custody and her next court appearance is scheduled for Monday, April 14, at 9:30am before judge Westmore for identification of counsel.
The maximum statutory penalties for conspiring to commit health care fraud, in violation of 18 U.S.C. § 1349, are a prison term of 10 years, a fine of $250,000, and 3 years of supervised release. The maximum statutory penalties for conspiring to distribute controlled substances and for distributing controlled substances, in violation of 21 U.S.C. §§ 846 and 841(a)(1), are a prison term of 20 years, a fine of $1,000,000, and 3 years of supervised release. The maximum statutory penalties for willfully failing to file a tax return, in violation of 26 U.S.C. § 7203, are a prison term of 1 year, a fine of $25,000, and 3 years of supervised release. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Randy Luskey is prosecuting this case with the assistance of Vanessa Vargas. The prosecution resulted from a joint investigation by the FBI, the U.S. Department of Health & Human Services, Office of Inspector General, the Tactical Diversion Squad of the Drug Enforcement Administration, and IRS-Criminal Investigation.
Please note, an indictment contains only allegations against an individual and, as with all defendants, Toni Daniels must be presumed innocent unless and until proven guilty(Daniels indictment )
Department of Justice and Rhode Island Judiciary Enter into Agreement for Provision of Language Assistance Services in R.i. CourtsRead the Press Release
WASHINGTON – The Justice Department has reached an agreement with the Rhode Island Judiciary to ensure that limited English proficient (LEP) individuals will have access to timely and competent language assistance at no charge in all court proceedings, services and programs throughout the state court system.
As part of the agreement, the department approved the Rhode Island Judiciary’s Language Access Plan, which outlines the efforts to be undertaken in order to ensure comprehensive language assistance throughout the court system. The plan requires ongoing translations of forms and signs in court buildings into commonly spoken languages in Rhode Island, such as Spanish, Portuguese, Cambodian and Cape Verdean. The Rhode Island Judiciary also created a Notice of Right to Language Assistance which states that the court will provide a competent interpreter for any limited English proficient party or witness at no charge, and explains the procedure to request an interpreter or a translation of the notice into other languages. The notice must be provided to each defendant in a proceeding and is available in multiple languages. In civil matters, the notice must be incorporated in or attached to the initial pleading to be served upon the defendant. In criminal matters, the notice must be incorporated in or attached to the initial charging documents provided to the defendant, in the forms completed by a bail commissioner or provided by the court at the defendant’s her initial court appearance. In addition, a language services complaint form is available in multiple languages on the court’s website, in the court clerk’s office and at the Office of Court Interpreters.
The plan was mandated in 2012 by Chief Justice Paul A. Suttell through an executive order that was issued after extensive consultation with the department. The Office of Court Interpreters and the Administrative Office of State Courts will review the effectiveness of the plan and consider changes to improve its policies and procedures on an annual basis. The plan includes an important requirement for input from and consultation with stakeholders. The agreement also requires additional steps to be taken by the court in consultation with the department and provides for at least two years of monitoring and technical assistance.
“Chief Justice Suttell, the Rhode Island Judiciary staff and the other Rhode Island stakeholders who contributed to this process are to be commended for their ongoing efforts and shared determination that justice and equality in Rhode Island courts not be restricted to those proficient in English,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.
The complaint was resolved as part of the initiative by the Federal Coordination and Compliance Section (FCS) of the Civil Rights Division to ensure that state courts comply with the language access requirements of Title VI. To ensure that no LEP individual is denied justice due to a court’s failure to provide language services, the FCS Courts Team, led by Special Legal Counsel Christine Stoneman, provides policy guidance and technical assistance to state court systems and undertakes enforcement actions across the country. Recently, FCS released a Courts Language Access Planning and Assistance Tool and resolved a complaint with the King County Superior Court in Washington.
The Rhode Island matter was handled by FCS Attorney Paul M. Uyehara of the Civil Rights Division with the assistance of Assistant U.S. Attorney Ndidi N. Moses, who was serving as a Detail Attorney to FCS.
For more information about Title VI and the Safe Streets Act, or to obtain copies of the settlement documents, please visit this website.
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Contact: (202) 514-2007
Deborah Williamson Pleads Not Guilty to Embezzling from Grocery EmployerRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Deborah Williamson, 36, a former resident of Wheelock who now lives in Florida, pleaded not guilty yesterday in United States District Court in Burlington to a charge that she embezzled about $70,000 from her ex-employer. U.S. Magistrate Judge John M. Conroy released Williamson on conditions pending trial, which has not been scheduled.
On March 20, 2014, a federal grand jury in Burlington returned a one-count indictment accusing Williamson of mail fraud. According to the indictment, Williamson was employed as the manager of White Market, a grocery store in Lyndonville. Her duties included regularly cashing checks drawn against the company's local bank account to obtain one dollar bills and coins for the cashier's cash registers. The indictment alleges that between 2010 and 2012, Williamson stole nearly $70,000 in cash from the store's safe. She allegedly tried to cover up these thefts by not recording, or underreporting, the amount of cash and coins received from the bank in the store's computerized accounting system.
The United States Attorney emphasizes that the charge in the indictment is merely an accusation and that the defendant is presumed innocent unless and until she is proven guilty.
If convicted, Williamson faces up to 20 years of imprisonment and a fine of up to $250,000. The actual sentence would be determined with reference to federal sentencing guidelines.
This case was investigated by the Lyndonville Police Department and the Federal Bureau of Investigation.
Williamson is represented by Brooks McArthur. The prosecutor is Assistant U.S. Attorney Gregory Waples.Crimanal Complaint Filed Against Kelvin Melton in Kidnapping CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today KELVIN MELTON, a/k/a Dizzy, a/k/a Old Man, was charged with conspiring to kidnap Frank Arthur Janssen of Wake Forest, North Carolina, in violation of Title 18, United States Code, Section 1201(a).
According to the investigation, MELTON and others engaged in a conspiracy to seize, kidnap, and abduct Frank Janssen from Wake Forest, North Carolina and transport him to Atlanta, Georgia. MELTON used a cell phone that he illegally possessed while serving a life sentence in the Polk Correctional Institution in Butner, North Carolina to transmit instructions and threats to Mr. Janssen’s wife and to co-conspirators in the plot. Specifically, MELTON gave instructions on how to kill Mr. Janssen and dispose of his body. If convicted of this charge, MELTON facesa maximum sentence of life imprisonment and a fine of up to $250,000.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The case is being investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
Convicted Felon Sentenced to Eight Years in Federal Prison for Illegal Possession of A FirearmRead the Press Release
CHARLESTON, W.Va. – A Charleston, West Virginia felon who illegally possessed a firearm was sentenced today to eight years in federal prison, U.S. Attorney Booth Goodwin announced. Curtis Watkins, 25, previously pleaded guilty in October of 2013 to being a felon in possession of a firearm. The sentence was handed down by United States District Court Judge John T. Copenhaver, Jr.
In September of 2012, Watkins illegally possessed a loaded 9-millimeter pistol near Sistah’s Rib Shack on the West Side of Charleston. Watkins was previously convicted in October of 2009 of felony possession with intent to distribute cocaine base, also known as “crack.” Watkins was still on federal supervision for the felony drug conviction when he was found with the gun. Watkins received an additional sentence of 12 months, to be served consecutively to the felon-in-possession sentence, for violating the terms of his supervised release.
The investigation was conducted by the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Haley Bunn handled the prosecution.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
Citizen of Zimbabwe Pleads Guilty to Tax Fraud ConspiracyRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Tendayi Mandere, a citizen of Zimbabwe, pled guilty today to violations of 18 USC § 286 (False Claims Conspiracy) and 18 USC § 1028A(a)(1) (Aggravated Identity Theft). Mandere will be sentenced on August 22, 2014 at 10:00 a.m. by the Honorable Richard G. Andrews, United States District Judge for the District of Delaware. For his violation of 18 USC § 286, Mandere faces a maximum sentence of ten years in prison, a fine of $250,000, and 3 years of supervised release. His violation of 18 U.S.C. § 1028A(a)(1) carries a mandatory two year term of imprisonment consecutive to any other term of incarceration, a maximum fine of $250,000, and a maximum of 3 years of supervised release.
According to statements made at the plea hearing and documents filed in court, the defendant participated in a tax fraud conspiracy involving the filing of more than 130 false individual federal income tax returns with the Internal Revenue Service. The defendant obtained the names and social security numbers of real individuals from his co-conspirators, and he used them to electronically file false tax returns via the Internet. The defendant fabricated the wage and withholding information on the returns, which sought refunds of more than $600,000. Most of these fraudulent returns were rejected by the Internal Revenue Service. As part of the defendant’s plea agreement, he agreed that he was responsible to pay restitution to the Internal Revenue Service in the amount of at least $114,000, the amount obtained by the defendant and his co-conspirators during the course of the scheme.
U.S. Attorney Oberly gave the following comments: “I want to specifically extend thanks to the IRS and its agents who work so diligently ferretting and developing evidence allowing my office to prosecute tax cheats. Tax fraud is a huge problem, and all of us who work and pay our taxes are victims. These cases are of particular interest to me and will be prosecuted to the fullest extent possible.”
“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation," said Akeia Conner, Special Agent in Charge, Philadelphia Field Office. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s plea should serve as a strong deterrent to those who are considering similar conduct. Law enforcement is serious about investigating these crimes and holding to account those who would defraud the government.”
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration, Office of the Inspector General. The case is being prosecuted by Assistant United States Attorneys Lauren Paxton and Jennifer Hall.
Canadian Man Sentenced for Importing 147,000 Ecstasy PillsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Osborne Young, 47, of Richmond Hill, Ontario, Canada, who was convicted following a jury trial of importing approximately 147,000 pills containing Benzylpiperazine, commonly referred to as Ecstasy, into the United States from Canada, was sentenced to 166 months in prison by U.S. District Judge Richard J. Arcara.
According to Assistant U.S. Attorney Mary Catherine Baumgarten, who handled the prosecution of the case at trial, the defendant drove his tractor trailer and attempted to enter the United States from Canada at the Lewiston Bridge Port of Entry in April 2012. After being pulled over for secondary inspection, Customs and Border Protection Officers discovered approximately 147,000 Ecstasy pills concealed in the refrigeration unit of the tractor trailer. The estimated value of the pills was at least $1,500,000.
The sentencing is the result of an investigation on the part of Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of James C. Spero and U.S. Customs and Border Protection, under the direction of Randy Howe, Director of Field Operations.
Bronx Man Pleads Guilty in White Plains Federal Court to Five Counts of Impersonating A Federal AgentRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Terence S. Opiola, the Special Agent in Charge, U.S. Immigration and Customs Enforcement (ICE) Office of Professional Responsibility (OPR) Northeast, announced today that CARL OSBORNE pled guilty to five counts of impersonating a federal officer in order to detain others. OSBORNE pled guilty in White Plains Federal Court before United States District Judge Cathy Seibel.
Manhattan U.S. Attorney Preet Bharara stated: “The public needs to know that the men and women of law enforcement who are authorized can be trusted to do the vital jobs they carry out for us every day. Carl Osborne’s criminal actions of impersonating federal agents to stop motorists put himself and others in harm’s way and cannot be tolerated.”
Special Agent in Charge Terence S. Opiola of the U.S. Immigration and Customs Enforcement (ICE) Office of Professional Responsibility (OPR) Northeast, stated: “The men and women who have legitimately earned the badges they wear have sworn an oath to protect and defend this nation. Imposters who purport themselves to be special agents and officers of the law undermine the public trust and prey on the vulnerable. This conduct will never be tolerated and all individuals engaged in these acts will be brought to justice.”
According to the criminal Information and related court proceedings:
Between August 2012 and May 2013, on five separate occasions, OSBORNE, who was not an officer of the United States, represented himself to be a federal agent of the United States Department of Homeland Security. In the guise of a federal officer, complete with fake uniform, credentials and phony gun, and driving a vehicle equipped with lights and sirens, OSBORNE pulled over several vehicles in the Bronx and Westchester County.
OSBORNE, 37, of the Bronx, New York, pled guilty to five counts of impersonating a federal agent or officer and detaining individuals. All five counts carry a maximum term of 3 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. The sentencing before Judge Seibel is scheduled for July 18, 2014.
Mr. Bharara praised the outstanding investigative work of the Department of Homeland Security, Immigration and Customs Enforcement Office of Professional Responsibility.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Daniel P. Filor is in charge of the prosecution.
U.S. v. Carl Osborne Information
Bloomington Man to Serve 10 Years in Prison for Placing Pipe Bomb in DecaturRead the Press Release
Urbana, Ill. – Senior U.S. District Judge Harold A. Baker yesterday sentenced Lloyd B. Lockwood, 47, of Bloomington, Ill., to serve the statutory maximum 10 years in federal prison for placing a pipe bomb in a Decatur, Ill., mailbox in March 2011, as announced by U.S. Attorney Jim Lewis, Central District of Illinois.
On Aug. 14, 2013, a jury convicted Lockwood for placing a pipe bomb in a mailbox at a Decatur home on Mar. 30, 2011. Lockwood was charged with possession of an unregistered destructive device and being a felon in possession of a destructive device.
Lockwood was arrested and charged in the case in September 2012. He was released on bond with special conditions including home detention. In January 2013, U.S. Magistrate Judge David G. Bernthal revoked Lockwood’s bond after Lockwood violated an order of protection filed against him in McLean county court. Lockwood has been detained in the custody of the U.S. Marshals Service since January 2013, and was remanded to the U.S. Marshals Service following yesterday’s hearing.
The case was prosecuted by Assistant U.S. Attorney Jason M. Bohm. The charges were investigated by the FBI, ATF, Decatur Police Department, Macon County Sheriff’s Office, and the University of Illinois Bomb Squad.Bethalto Man Sentenced for Producing Child PronographyRead the Press Release
Will Spend Twenty Five Years in Prison, Then Will Be on Supervision for the Rest of His Life
Follow @SDILNewsA Bethalto man was sentenced in federal district court on April 11, 2014, for Production of Child Pornography, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Walter Lewis Sherman, 47, was sentenced to 25 years in federal prison, to be followed by a lifetime term of supervised release. Sherman pled guilty to the charges on December 4, 2013. He has been in continuous custody since January 24, 2011. There is no parole in the federal system.
“This was an appropriately harsh sentence for a very disturbing crime. My office will always be on the forefront of protecting the most innocent and vulnerable members of our community from such predators.” noted United States Attorney Wigginton.
The violation occurred from approximately December 13, 2008, to July 2010, in Madison County, Illinois, and involved a kindergarten-aged child. Sherman admitted to taking still photographs of the nude child, consisting of extreme close-up images of the child’s genitalia.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Bethalto Police Department, which has a detective assigned to the Federal Bureau of Investigation’s Metro East Cybercrime Task Force. The case was prosecuted by Assistant United States Attorney Suzanne M. Garrison.
Bergen County, N.J., Doctor Charged with Tax ViolationsRead the Press Release
Allegedly Made Millions of Dollars in Cash Deposits; Transferred Ownership of Home to Family Member; and Failed to File Tax Returns
NEWARK – A Bergen County, N.J., doctor who owns three immediate care facilities in Hudson County, N.J., was arrested today on multiple tax violations, including allegedly making cash deposits of more than $5.8 million into bank accounts he controlled, U.S. Attorney Paul J. Fishman announced.
Medhat El Amir, 59, of Saddle River, N.J., was indicted April 10, 2014, by a federal grand jury on one count of corruptly endeavoring to impede the due administration of the internal revenue code, four counts of tax evasion and three counts of failure to file tax returns. He was arrested at his home this morning by agents of IRS-Criminal Investigation and the U.S. Department of Health and Human Services, Office of Inspector General. He is scheduled to make his initial court appearance this afternoon before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.
According to the Indictment: El Amir was a primary care doctor and 60 percent owner of Immediate Care P.C., (Immediate), which provided urgent care health services for its patients at an office in North Bergen, N.J., and two offices in Jersey City.
From Feb. 11, 2005, through Dec. 31, 2010, El Amir allegedly attempted to impede the internal revenue code in a number of ways. He fraudulently transferred his residence in Saddle River to his sister, identified only as “A.E.A.,” for $2.5 million to keep the property out of the reach of the IRS while continuing to live there. He also cashed checks made out to Immediate at a check cashing facility and deposited that unreported income into a number of bank accounts he controlled and used the money for personal expenses. During a four-year period, El Amir received checks totaling $7,261,084 from insurance companies for medical treatments provided by Immediate and caused $5,836,298 in cash to be deposited into 15 bank accounts he maintained and/or controlled.
El Amir also allegedly filed a false 2008 personal income tax return, claiming interest deductions to which he was not entitled, and sent fraudulent correspondence to the IRS that under-reported the amount of income he and his wife received from Immediate in calendar year 2008 and the amount of income deductions to which he was entitled.
Despite earning a significant income through Immediate, El Amir did not file a personal income tax return, Form 1040, for calendar years 2007, 2009 and 2010. While El Amir did file a personal income Form 1040 for calendar year 2008, this return substantially under-reported the income El Amir received from Immediate in calendar year 2008.
The count of corruptly endeavoring to impede the due administration of the internal revenue code carries a maximum potential penalty of three years in prison and a $5,000 fine. The counts of tax evasion each carry a maximum potential penalty of five years in prison and a $250,000 fine and the counts of failure to file a tax return each carry a maximum potential penalty of one year in prison and a $25,000 fine.U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Tom O’Donnell, with the investigation leading to today’s indictment.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $535 million in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
The government is represented by Assistant U.S. Attorney Deborah J. Gannett of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark.
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El Amir, Medhat Indictment
Alton Man Pleads Guilty to Firearm OffenseRead the Press Release
Follow @SDILNewsOn April 11, 2014, Cameron D. Matlock, a 22-year old Alton, Illinois, man pled guilty in federal district court, in East St. Louis, Illinois, to unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Stephen R. Wigginton, announced today. Matlock is scheduled for sentencing on August 1, 2014, at which time he faces a prison term of not more than 10 years’, a fine of up to $250,000, or both, not more than 3 years of supervised release, and a mandatory special assessment of $100.
Court proceedings revealed that on or about December 22, 2013, an Alton police officer was dispatched to an apartment building in Alton, Illinois, on a report of suspicious behavior by individuals parked in a vehicle towards the back of the building. Upon arrival, the officer observed two men standing outside of the car and two sitting in the backseat. As he came closer to the men, he immediately smelled marijuana and ordered the individuals inside the car to step out. Matlock occupied the driver side rear seat. A search of the car uncovered a small black handgun on the rear driver side floorboard, where Matlock was seated. Matlock admitted to knowing he was not to possess a firearm, as a previously convicted felon.
This case was investigated by the Alton Police Department and is assigned to Special Assistant United States Attorney Neal C. Hong for prosecution.
10 April 2014
Warren County, Kentucky, Woman Charged with Arson of the Horse Cave, Kentucky Dollar General StoreRead the Press Release
– Also charged with bankruptcy fraud in a superseding indictment
BOWLING GREEN, Ky. – A Warren County, Kentucky woman was charged by a federal grand jury meeting in Bowling Green this week, with a single count of maliciously damaging and destroying, and attempting to damage and destroy, by means of fire, the Dollar General Store, a building, real, and personal property, located in Horse Cave, Kentucky, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the indictment, on June 27, 2011, Debra Fowler Kessinger, age 57, attempted to destroy, by means of fire, the Dollar General Store located at 1015 East Main Street in Horse Cave, Kentucky.
Further, the defendant was charged in a separate two-count superseding indictment, this week, by a grand jury in Bowling Green, with bankruptcy fraud. According to the indictment, beginning in April 2008, and continuing through December 2009, Kessinger knowingly devised a scheme to defraud her creditors, the U.S. Trustee, and the Bankruptcy Court, by submitting a fraudulent Chapter 7 Bankruptcy petition, In re Debra K. Fowler, Case No. 08-11653, that concealed and failed to disclose the purchase and possession of property, and the receipt and transfer of life insurance proceeds and retirement benefits of her late husband to the bank accounts of family members and others for her own benefit.
If convicted at trial, Kessinger faces between 5 and up to 20 years in prison for destroying property by means of fire, a $250,000 fine and 3 years of supervised release. Kessinger also faces forfeiture of property, no more than 10 years in prison for bankruptcy fraud, a fine of $500,000 and 3 years of supervised release.
This case is being prosecuted by Assistant United States Attorney Joshua Judd and is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
Victim Advocates, Prosecutors, Law Enforcement and Others Join in Recognition of Crime Victims' Rights Week TodayRead the Press Release
***MEDIA ADVISORY***
Second Annual Walk/Run for Justice 5K Set to kick off at Noon
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia, along with victim advocates, prosecutors, law enforcement and others will host an event at Haddad Riverfront Park in Charleston TODAY in recognition of National Crime Victims’ Rights Week Charleston Police Chief Brent Webster and Lt. Keith Vititoe with Kanawha County Sheriff Office are invited speakers. This event is being held in conjunction with the nationwide observance of National Crime Victims’ Rights Week (NCVRW), which began on April 6. The ceremony today is being held in conjunction with the 14th Annual Operation Reach Out. Operation Reach Out is a collaboration of federal, state and local organizations that was formed to raise awareness for NCVRW in West Virginia. This year’s theme for week is “30 Years: Restoring the Balance of Justice.”
WHO: Chief Brent Webster, Charleston Police Department
Lt. Keith Vititoe, Kanawha County Sheriff’s Office
Staff representing local and statewide advocacy programs
Survivors of crime
Various federal, state and local officialsWHERE: Haddad Riverfront Park
Kanawha Boulevard Charleston, WVWHEN: TODAY, April 10, 2014
TIME: The ceremony will begin at 11:30 a.m. and the Walk/Run for Justice 5K will kick off at noon.
Route: Haddad Riverfront Park to the West Virginia State Capitol Complex and back.United States Sues Town of Oyster Bay for Housing DiscriminationRead the Press Release
Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights, announced today that the United States has commenced an action against the Town of Oyster Bay on Long Island for violating the Fair Housing Act, 42 U.S.C. § 3601 et seq. In its complaint, the United States alleges that two housing programs to develop below-market rate housing for first time homeowners and senior citizens discriminate against African-Americans because the programs give preference to residents of the Town, which is predominantly white.
“Housing programs designed to help young families and senior citizens purchase homes should be available to people of all races, including African Americans,” stated United States Attorney Lynch. “To the extent residency preferences prevent families and senior citizens from purchasing homes because of race, ethnicity or color, the preferences violate federal law and cannot be tolerated.”
Acting Assistant Attorney General for Civil Rights Samuels, stated, “The Fair Housing Act protects the right of all individuals, regardless of their race, to choose where to live and to have equal access to affordable housing. Today’s lawsuit is a reminder that if municipalities wish to adopt residency preferences such as those imposed by the defendants, they must do so in a way that does not discriminate against people based on race.”
At issue are two Town zoning incentive programs. The “Next Generation” housing program encourages developers to build below-market rate housing for first time homebuyers, generally young families. The “Golden Age” housing program similarly offers incentives for the construction of below-market rate housing for senior citizens. Developers who build housing under the programs receive zoning variances which allow them to build housing more densely than under current zoning restrictions in exchange for lower sale prices for certain units. Both programs require developers to award units constructed under the programs to residents and children of residents of the Town.
According to the United States’ complaint, the residency preferences discriminate against African Americans because very few African Americans reside in the Town and even fewer are eligible for the program as compared to the population of African Americans in surrounding communities, which are significantly more diverse. For example, African Americans constituted less than 1% of families living in the Town of Oyster Bay who were income eligible and otherwise qualified to purchase housing under the Next Generation program. Conversely, whites made up as much as 90% of the pool of eligible families. The eligible population of Nassau County and Suffolk County residents was approximately 10% African American and between 70% and 75% white. The eligible population in the New York City metropolitan area was approximately 20.5% African-American and approximately 48% white.
Also named as defendants are John Venditto, the Oyster Bay Town Supervisor, in his official capacity, and Long Island Housing Partnership (“LIHP”), the not-for-profit organization which is responsible for administering the Next Generation housing program, including implementing the residency preferences for the Town.
The complaint was filed with an accompanying settlement between the United States and LIHP. LIHP has agreed to injunctive relief pursuant to which LIHP will ensure that residency preferences it administers are analyzed so that they do not violate fair housing laws. LIHP will also provide education and training to localities, banks and individuals on Long Island regarding the requirements of fair housing laws.
This case is being handled by Eastern District of New York Assistant U.S. Attorneys Michael J. Goldberger and Thomas A. McFarland, and Trial Attorney Neta Borshansky of the Civil Rights Division Housing and Civil Enforcement Section.
United States Sues Oyster Bay, N.Y., for Housing DiscriminationRead the Press Release
Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Loretta E. Lynch for the Eastern District of New York announced today that the United States has filed a complaint against the Town of Oyster Bay in Long Island, N.Y., for violating the Fair Housing Act. The complaint alleges that two housing programs designed to develop below-market rate housing for first time homeowners and senior citizens discriminate against African-Americans because the programs give preference to residents of the town, which is predominantly white.
“The Fair Housing Act protects the right of all individuals, regardless of their race, to choose where to live and to have equal access to affordable housing,” said Acting Assistant Attorney General Samuels. “Today’s lawsuit is a reminder that if municipalities wish to adopt residency preferences such as those imposed by the defendants, they must do so in a way that does not discriminate against people based on race.”
“Housing programs designed to help young families and senior citizens purchase homes should be available to people of all races, including African-Americans,” said U.S. Attorney Lynch. “To the extent residency preferences prevent families and senior citizens from purchasing homes because of race, ethnicity or color, the preferences violate federal law and cannot be tolerated.”
At issue are two town zoning incentive programs. The Next Generation housing program encourages developers to build below-market rate housing for first time homebuyers, generally young families. The Golden Age housing program offers similar incentives for the construction of below-market rate housing for senior citizens. Developers who build housing under the programs receive zoning variances which allow them to build housing more densely than current zoning restrictions permit in exchange for lower sale prices for certain units. Both programs require developers to award units constructed under the programs to residents and children of residents of the town.
According to the complaint, the residency preferences discriminate against African-Americans because very few African-Americans reside in the town and even fewer are eligible for the program, as compared to the population of African-Americans in surrounding communities that are significantly more diverse. African-Americans constituted less than one percent of families living in the Town of Oyster Bay who were income eligible and otherwise qualified to purchase housing under the Next Generation program. Conversely, whites made up as much as 90 percent of the pool of eligible families. The eligible population of Nassau County, N.Y., and Suffolk County, N.Y., residents was approximately 10 percent African-American and between 70 percent and 75 percent white and the eligible population in the New York City metropolitan area was approximately 20.5 percent African-American and approximately 48 percent white.
Also named as defendants are Oyster Bay Town Supervisor John Venditto, in his official capacity, and Long Island Housing Partnership (LIHP), the not-for-profit organization which is responsible for administering the Next Generation housing program, which includes implementing the residency preferences for the town.
The complaint was filed with an accompanying settlement between the Department and LIHP. LIHP has agreed to injunctive relief which requires LIHP to ensure that residency preferences it administers are analyzed so that they do not violate fair housing laws. LIHP will also provide education and training to localities, banks and individuals on Long Island regarding the requirements of fair housing laws.
United States Attorney Announces the Federal Indictment of Four Indianapolis Men on Heroin ChargesRead the Press Release
$100,000 worth of heroin destined for the streets of Indianapolis seized.
Hogsett describes U.S. Attorney’s Office continuing efforts to combat a resurgence of heroin use in Hoosier communities.INDIANAPOLIS – In the second major drug prosecution announcement in the past two days, United States Attorney Joseph H. Hogsett revealed the indictment of four Indianapolis men for their participation in a heroin drug trafficking organization (DTO) that operated primarily in the Brightwood neighborhood on the Northeast side of Indianapolis. Charged with conspiracy to possess with intent to distribute and to distribute heroin were:
Francisco Javier Perez-Garcia, a/k/a, Tio, 36; Mario Vasquez, a/k/a, Minuto, 26; Agustin Martinez-Acosta, a/k/a, Chukky 46, and
Jeronimo Lagunes, 27.Perez-Garcia and Vasquez were also charged with conspiracy to possess with intent to distribute and distribute methamphetamine.
“Heroin has become the scourge of our community in the past several years.” said Hogsett. “Few substances are more lethal right now. Heroin has no socio-economic or racial boundary and impacts every corner of our state. The heroin epidemic is blind to what tax bracket you happen to be in. We also are keenly aware that we can’t prosecute our way out of this problem. That is why we are redoubling efforts to bring all of our resources to bear on the root causes of these challenges.”
Search warrant affidavits allege Perez-Garcia operated a DTO at several locations in Brightwood neighborhood dealing large amounts of heroin since early 2013. His two accomplices, Vasquez and Martinez-Acosta worked closely with Perez-Garcia moving the heroin to retail dealer/customers. The affidavit further alleges heroin customers would call the “dispatch phone” at Perez-Garcia’s auto body shop at 2405 North Station Street to order the heroin. The three, along with other members of the DTO would routinely sell heroin from that location and others in the Brightwood area. It is believed the heroin shipments would come from unknown sources in Mexico, California and Houston.
Court documents allege the fourth defendant, Lagunes, was driving a Cadillac Escalade on Interstate 70 near Brownsburg on March 23, 2014, when he was stopped by the Brownsburg Police Department for a traffic violation. When interviewed by officers, his story did not match with a passenger in the vehicle concerning their origination point and destination of travel. Lagunes gave officers consent to search the vehicle and they found over a kilogram of heroin in a Gucci purse in the rear of the vehicle. The government further alleges the heroin was destined to the DTO for distribution on the Eastside of Indianapolis. The value of this heroin if distributed on the streets of Indianapolis would be approximately $100,000.00.
This indictment comes on the heels of a February 2014 trial of three Indianapolis men who were found guilty after a nine–day jury trial where defendants Brandon Lomax,. Demond Glover and Anthony Lomax were convicted of twenty criminal counts including conspiracy to possess and distribution of heroin as well as federal firearms charges. This DTO operated on the Westside of Indianapolis.
“The DEA is firmly committed to helping stem the tide of heroin use in Indiana,” said Dennis Wichern, Assistant Special Agent in Charge of the Drug Enforcement Administration in Indiana. “Our agency has increased heroin seizures by 320% from 2008-2013 and, we fully understand the severity of the epidemic in our communities.”
Heroin is made from morphine which is extracted from poppy plants. Typically the plants are grown in Asia, South America and Mexico and the heroin is then transported to the United States for illicit use. It is ingested by smoking, snorting or injecting directly into the veins of users. Heroin has become popular as opiate users find it more difficult and expensive to find prescription drugs. The devastating consequences of opiate addiction makes the user turn to a quicker and less expensive but often times deadly use of heroin.
To assist in this fight, Hogsett has directed federal prosecutors to work with the Drug Enforcement Administration and the Indiana Attorney General’s Office to aggressively investigate doctors who are operating high-volume “pill mill” practices. If they are found to have abused their prescription writing authority, they face potential state and federal prosecution, as well as the revocation of their medical licenses. He has also directed the Office to work with local authorities to seek federal funding for treatment and prevention efforts.
Other law enforcement partners who worked on the case include: the Indianapolis Metro Drug Task Force, the Indiana State Police, the Internal Revenue Service, the Immigration and Customs Enforcement Criminal Investigations Division and the Ohio State Patrol.
According to Assistant United States Attorney Michelle Brady and Assistant United States Attorney Doris Pryor, who are prosecuting the case for the government, all defendants face a mandatory minimum sentence of 10 years to life, if convicted.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
U.S. Attorney Hosts Human Trafficking and Domestic Sex Trafficking Forum During National Crime Victims’ Rights WeekRead the Press Release
Tampa, Florida — April 6 marks the beginning of National Crime Victim’s Rights Week. This year’s theme—30 Years: Restoring the Balance of Justice—presents a perfect opportunity to salute the Tampa Bay area law enforcement and victims’ services community in their long-term commitment to aid crime victims. As part of this week’s nationwide activities, the U.S. Attorney’s Office for the Middle District of Florida today hosted a forum bringing together federal, state, and local law enforcement experts and victims’ services providers to educate members of the community on human trafficking and domestic sex trafficking. The half-day forum included a victim’s perspective, a law enforcement investigative and prosecutorial overview, an insight into the forensics interview process, and resources for assisting victims of human and sex trafficking. U.S. Attorney A. Lee Bentley, III opened the forum by discussing human and sex trafficking in Florida and highlighted ways in which federal, state, and local public safety agencies, along with the greater community can work together to raise awareness and help combat the issue.
“Human trafficking takes many forms,” said U.S. Attorney A. Lee Bentley, III. “In order to tackle this problem, we must collaborate with our partners on all fronts – from education and prevention, to enforcement, prosecution and the recovery of victims.”
Florida Attorney General Pam Bondi joined U.S. Attorney Bentley in addressing the need for greater collaboration among stakeholders. Since 2013, the Office of the Florida Attorney General has been engaged in a statewide initiative to educate Floridians on the dangers of child exploitation through its “From Instant Message to Instant Nightmare” campaign. The initiative is dedicated to making Florida a zero-tolerance state for human trafficking and elicits the cooperation of parents, businesses, and citizens.
"I am grateful to U.S. Attorney Bentley for his leadership in bringing together everyone who has a role in assisting human trafficking victims,” said Florida Attorney General Pam Bondi. “I am dedicated to eradicating human trafficking in Florida, and by opening the lines of communication among federal, state and local agencies, we can enhance our efforts to end this horrific crime."
According to reports compiled by the Office for Victims of Crime (OVC), U.S. Department of Justice-led federal investigations and human trafficking charges have increased in recent years. Since 2008, the Middle District of Florida has prosecuted several notable cases, resulting in significant prison sentences for offenders involved in sex trafficking:- United States vs. Weylin O. Rodriguez – Life imprisonment
- United States vs. Ian Sean Gordon – Life imprisonment
- United States vs. Marvin Madkins – 50 years
- United States vs. Eric Bell – 30 years
- United States vs. Andrew Fields - 34 years
- United States vs. Tyrone Townsend – 26 years and 8 months
- United States vs. Ruel Brown – 15 years and 8 months
Only 30 years ago, crime victims had virtually no rights and no assistance. Today, our nation has made dramatic progress in securing rights, protections, and services for victims. Every state has enacted victims’ rights laws and all have victim compensation programs. More than 10,000 victim service agencies now help people throughout the country. In 1984, Congress passed the bipartisan Victims of Crime Act (VOCA), which created a national fund to ease victims’ suffering. Now, once-hidden crimes, like domestic and sexual violence, hate and bias crimes, bullying, and sex and labor trafficking, among others, are receiving greater attention and additional resources.
National Crime Victims’ Rights Week will be held April 6–12 in communities throughout the nation. OVC encourages widespread participation in the week’s events and in other victim-related observances throughout the year. For more ideas on how to volunteer to help crime victims, visit the Office for Victims of Crime website, www.ovc.gov.
Two Randolph County Men Sentenced for Methamphetamine ConspiracyRead the Press Release
Follow @SDILNewsOn April 10, 2014, Stephen P. Salzwedel, a/k/a “Steak,” 41, and Tony G. Carle, 27, both of Tilden, Illinois, were sentenced in United States District Court in Benton on a one-count indictment charging conspiracy to manufacture methamphetamine, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced.
Salzwedel and Carle, who had both previously pled guilty to the methamphetamine offense, were sentenced to prison terms of 140 months and 120 months, respectively. They were each fined $200 and placed on 3 years’ supervised release. The offense occurred between 2012 and April 2013 in Perry, Randolph, and Jackson Counties. Evidence at the plea and sentencing hearings established that Salzwedel and Carle were involved with others in the manufacture of methamphetamine. They purchased pseudoephedrine, themselves, and collected pseudoephedrine from others to use in cooking methamphetamine. At sentencing, the district judge found that they were responsible for obtaining over 72 grams of pseudoephedrine. Salzwedel and Carle also received enhanced sentences because there was a minor involved in the offense.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Illinois State Police Methamphetamine Response Team, and Drug Enforcement Administration. The Randolph County State’s Attorney’s Office also assisted in the investigation.
The case was assigned to Assistant United States Attorney Amanda A. Robertson for prosecution.
Two Defendants Charged with Defrauding Sony OpenRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the unsealing of an indictment alleging that two former employees of IMG Worldwide, Inc. defrauded the company that runs the Sony Open Tennis tournament on Key Biscayne.Mikel Mims, 37, of Miami Gardens, and Simon Habbershaw, 41, formerly of Miami, were charged with conspiring to commit wire fraud and substantive wire fraud charges. Mims was arrested this morning and is scheduled to have an initial appearance this afternoon in Miami. Simon Habbershaw remains at large.
Each defendant faces a maximum term of 20 years in prison for each count of wire fraud and five years in prison for conspiring to commit wire fraud.
According to the indictment, Mims and Habbershaw were employees of IMG Worldwide, Inc. responsible for coordinating with sponsors and patrons for the delivery of tickets to the Sony Open Tennis tournament on Key Biscayne. The defendants are alleged to have told the printing vendor for IMG Worldwide, Inc., that patrons and customers of IMG Worldwide, Inc. had purchased more tickets than the patrons and customers had actually purchased. As a result, the printing vendor for IMG Worldwide, Inc. printed extra tournament tickets that it delivered to the defendants. The defendants then told customers that purported patron and customers of IMG Worldwide, Inc. had extra tickets for the tennis tournament that needed to be sold, stating that various companies had previously purchased too many tournament tickets. Between 2008 and 2013, Mims and Habbershaw sold these extra tournament tickets to patrons and customers of IMG Worldwide, Inc., but instead used the proceeds of the sale of the additional tournament tickets for their own personal benefit and the benefit of others. The indictment seeks forfeiture in the amount of $407,409.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorneys H. Ron Davidson and Alison Lehr.
An indictment is merely an accusation and defendants are presumed innocent until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Texas Men Indicted for Possessing More Than 100 Pounds of CocaineRead the Press Release
A federal grand jury in Cleveland returned a one-count indictment charging three Texas men with possession with the intent to distribute approximately 51 kilograms of cocaine, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Indicted are Guadalupe J. Zarate, age 42, of Penitas, Texas, Jesus Alberto Flores, age 25, of Pharr, Texas, and Noe Romero Salinas, age 32, of Rio Grande, Texas.
The men were in possession of the drugs in the Northern District of Ohio on April 4, 2014, according to the indictment.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Akron Police Department, the Summit County Sheriff’s Office, and the Akron-Summit County High Intensity Drug Trafficking Area (HIDTA) initiative. The case is being prosecuted by Assistant United States Attorney Samuel A. Yannucci.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Three Men Charged with<br /> Allegedly Defrauding the FCC of Approximately $32 MillionRead the Press Release
Three individuals have been indicted for their alleged roles in an approximately $32 million fraud against a Federal Communications Commission (FCC) program designed to provide discounted telephone services to low-income customers.
The charges were announced today by Acting Assistant Attorney General David A. O’Neil of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office, Inspector General David L. Hunt of the FCC Office of Inspector General (FCC-OIG) and Chief Richard Weber of the Internal Revenue Service – Criminal Investigation (IRS-CI).
Thomas E. Biddix, 44, of Melbourne, Fla., Kevin Brian Cox, 38, of Arlington, Tenn., and Leonard I. Solt, 49, of Land O’Lakes, Fla., were charged by a criminal indictment returned on April 9, 2014, and unsealed today in federal court in Tampa, Fla. The indictment charges the three defendants with one count of conspiracy to commit wire fraud and 15 substantive counts of wire fraud, false claims and money laundering. The court also authorized a seizure warrant seeking the defendants’ ill-gotten gains, including the contents of multiple bank accounts, a yacht and several luxury automobiles.
As alleged in the indictment, the defendants engaged in a scheme to submit false claims with the federal Lifeline Program administered by the Universal Service Administrative Company, a not-for-profit corporation designated and authorized by the FCC. The program aims to provide affordable, nationwide telephone service to all Americans through discounted phone service for qualifying low-income customers.
The indictment alleges that the defendants owned and operated Associated Telecommunications Management Services LLC (ATMS), a holding company that owned and operated multiple subsidiary telephone companies that participated in the Lifeline Program. Biddix, chairman of the board at ATMS, and Cox and Solt allegedly caused the submission of falsely inflated claims to the Lifeline Program between September 2009 and March 2011 that resulted in ATMS fraudulently receiving more than $32 million.
The investigation has been conducted by the FBI, FCC-OIG, and IRS-CI. The United States Marshals Service provided assistance coordinating the seizures of assets.
The case is being prosecuted by Trial Attorneys Andrew H. Warren and Kyle Maurer of the Criminal Division’s Fraud Section, with assistance from Darrin McCullough of the Criminal Division’s Asset Forfeiture and Money Laundering Section, and the United States Attorney’s Offices for the District of Columbia, the Western District of Tennessee and the Middle District of Florida.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.Three Indicted for Shining Lasers at Law Enforcement Aircraft in Fresno and BakersfieldRead the Press Release
FRESNO, Calif. — A federal grand jury in Fresno returned two indictments today charging three men in two separate cases with aiming green laser pointers at law enforcement aircraft, announced U.S. Attorney Benjamin B. Wagner and Monica Miller, Special Agent in Charge of the FBI’s Sacramento Field Office.
The federal statute used to charge the defendants is part of legislation signed into law in 2012 by President Obama that makes it a federal crime to knowingly aim the beam of a laser pointer at an aircraft.
Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. The focused beams of a laser remain powerful at extended viewing distances and can expose pilots and their crew members and passengers to radiation levels above those considered to be flight safe. Brief exposure to even a relatively low-powered laser beam can cause discomfort and temporary visual impairments such as glare, flash blindness and after images. Prolonged exposure to high-powered laser beams can result in permanent eye injury.
Laser Strike on Kern County Sheriff Helicopter
Timothy Earl Wilson, 46, of Bakersfield, was charged with aiming a laser pointer at Air‑1, a Kern County Sheriff’s Office helicopter. According to court records, Air-1 was struck by a powerful green laser multiple times. As a result of the laser strikes, the tactical flight officer experienced a feeling of pressure, throbbing and irritation in his eyes that lasted 30 minutes, and the flight crew was forced to divert attention away from routine patrol.Wilson was charged with the laser offense following a joint investigation conducted by the FBI’s Bakersfield and Long Beach Offices and Kern County Sheriff’s Office with assistance from the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting these cases.
Wilson was also charged by the Kern County District Attorney’s Office with drug-related violations and resisting arrest.
Laser Strike on CHP Aircraft
David Walter Fee, 22, and Andrew Zarate, 20, both of Fresno, were charged with aiming a laser pointer at Air 43, a California Highway Patrol aircraft. According to court records, Air 43 was struck up to 50 times by a powerful green laser pointer. As a result, the pilot suffered temporary blindness and Air 43 was forced to break away from a burglary in progress at a Fresno middle school.The case was investigated by the FBI’s Fresno Office, California Highway Patrol, and Fresno Police Department. Assistant U.S. Attorneys Karen A. Escobar and Michael G. Tierney are prosecuting this case.
Wilson is scheduled for arraignment on the indictment on April 21, 2014. Fee and Zarate are scheduled for arraignment on April 18, 2014. All three men face a maximum prison term of five years and a fine of up to $250,000, if convicted. Any actual sentence 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.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.