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Friday 14 February 2014
Otis Gene Crosby Browning Man, 74, Draws 10 Years in PrisonRead the Press Release
The United States Attorney's Office announced that during a federal court session in Great Falls, Montana, on February 13, 2014, before U.S. District Judge Brian M. Morris, OTIS GENE CROSBY, 74, of Browning, was sentenced to a term of 120 months imprisonment with ten years of supervised release to follow his release after pleading guilty to Aggravated Sexual Abuse.
The Court sentenced Crosby to the top of the range recommended under the federal sentencing guidelines. Because there is no parole in the federal system, the truth in sentencing guidelines mandate that Crosby will likely serve all of the time imposed by the court in prison. In the federal system, Crosby does have the opportunity to shorten the term of custody by earning credit for good behavior. However, this reduction will not exceed 15% of the overall sentence.
No other details are being released. The Government's Offer of Proof and Sentencing Memorandum are public record and may be electronically accessed using the PACER system at PACER Case Reference: 13-96
This investigation was conducted by the Bureau of Indian Affairs.
Omaha, Nebraska Man Convicted of Fort Dodge Bank RobberyRead the Press Release
An Omaha, Nebraska, man was convicted by a federal jury on February 13, 2014, after a three and one-half day trial in federal court in Sioux City.
Michael Clayton, age 44, from Omaha, Nebraska, was convicted of one count of bank robbery. The verdict was returned following about five hours of jury deliberations.
The evidence at trial showed that, on February 7, 2013, Clayton robbed the Citizens’ State Bank in Fort Dodge, Iowa, taking $11,284. That day, Clayton asked Christopher Anderson to drive him to a location near the bank and wait for him. Clayton robbed the bank, returned to Anderson’s car with a bag, and urged Anderson to drive away quickly. Anderson drove Clayton to Omaha, Nebraska, in order to help Clayton escape arrest, prosecution and imprisonment for the Fort Dodge, Iowa, robbery. Clayton paid Anderson $1,000 for his role in the offense.
On June 27, 2013, Anderson pled guilty to being an accessory after the fact to the bank robbery and will appear before United States District Court Judge Mark W. Bennett for sentencing on March 5, 2014. He faces up to 10 years’ imprisonment, up to $125,000 in fines, a $100 special assessment, and up to five years of supervised release following any term of imprisonment.
Clayton’s sentencing before United States District Court Judge Mark W. Bennett will be set after a presentence report is prepared. Clayton remains in custody of the United States Marshal pending sentencing. Clayton faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, a $100 special assessment, and five years of supervised release following any imprisonment.The case was investigated by the Fort Dodge Police Department, the Omaha Police Department, and the Federal Bureau of Investigation and was prosecuted by Assistant United States Attorney Forde Fairchild. Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl
The case file number is 13-3022.Office Manager Convicted of Defrauding Former Employer of More Than $400,000Read the Press Release
HOUSTON – Carol Mack, 43, of Humble, has pleaded guilty to one count of wire fraud and defrauding her former employer of hundreds of thousands of dollars, announced United States Attorney Kenneth Magidson.
As outlined in documents filed with the court and admitted by Mack during her guilty plea today, from approximately February 2005 through August 2012, Mack embezzled at least $400,000 from a Houston area plastics company. She wired corporate funds into her bank account, using a credit card terminal to make the wire transfers look like customer refunds.
As part of her guilty plea, Mack admitted she worked at the company as an office manager and executive assistant to the company’s CEO. She had access to sensitive financial information and the ability to process credit card transactions using a point of sale terminal. Mack admitted that beginning in at least February 2005, she stole money from her employer by processing sham customer refunds on more than 500 occasions. She entered credit card numbers linked to her own bank accounts, then prompted the terminal to send refunds to those accounts. Mack admitted she spent the embezzled funds on herself.
Mack also admitted that in order to conceal her scheme, she made false entries in the company’s general accounting ledger. These entries offset the fraudulent customer refunds and made it seem as if the transactions had no cumulative impact on company accounts.
U.S. District Judge Sim Lake, who accepted the guilty plea today, has set sentencing for May 15, 2014. At that time, she faces up to 20 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss.
The case is being investigated by the United States Secret Service and prosecuted by Assistant U.S. Attorney John Pearson.
North Richland Hills Man Sentenced to 80 Months in Federal Prison for Possessing Child PornographyRead the Press Release
FORT WORTH, Texas — A 57-year-old man from North Richland Hills, Texas, Joseph F. Greth, was sentenced this morning by U.S. District Judge John McBryde to 80 months in federal prison following his guilty plea in November 2013 to one count of possession of child pornography, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, special agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) executed a search warrant at Greth’s home. Among the items seized were 45 compact disks (CD) containing child pornography. Greth admitted that he used his computer to search for images and videos of child pornography, downloaded them and burned them onto CDs and DVDs.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The investigation was conducted by the Garland Police Department and ICE HSI. Assistant U.S. Attorney Aisha Saleem prosecuted.
North Dartmouth Man Pleads Guilty to Tax FraudRead the Press Release
BOSTON - A North Dartmouth male pleaded guilty yesterday to filing a false tax return in 2007 that grossly under-reported his income.
Gerald Sicard, 57, pleaded guilty to filing a materially false tax return. In January 2014, Sicard was charged by information as part of an agreement to plead guilty. Sentencing is scheduled for May 15, 2014.
According to the Information, in 2007, Sicard, a self-employed building contractor, intentionally under-reported his business income to his tax preparer, who then prepared Sicard's 2007 personal tax return in reliance on the false numbers. Sicard's actual gross income for 2007 was approximately $488,112, but he reported only $174,310 of gross income to his tax preparer, which was the amount the tax preparer entered on Sicard’s return. Sicard then verified his tax return as accurate and authorized the tax preparer to file it with the IRS on Sicard's behalf. Sicard's misrepresentations deprived the U.S. Treasury of about $111,969 in tax revenue for 2007.
The charge to which Sicard pleaded guilty carries a maximum sentence of three years of in prison, three years of supervised release and a fine of $100,000. Sicard may also be required to pay the costs of prosecution. By agreement, Sicard and the U.S. Attorney’s Office will recommend that Sicard serve a period of home confinement instead of incarceration.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case is being prosecuted by Andrew E. Lelling of Ortiz’s Economic Crimes Unit.
New York Man Stopped on I-95 with Crack, Oxycodone Sentenced to Six Years in PrisonRead the Press Release
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Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that, on February 12, JABARI PETERSON, 27, of Brooklyn, N.Y., was sentenced by U.S. District Judge Janet Bond Arterton in New Haven to 72 months of imprisonment, followed by four years of supervised release, for trafficking crack cocaine and oxycodone pills.
According to court documents and statements made in court, in the afternoon of January 29, 2013, a Connecticut State Trooper stopped PETERSON on Interstate 95 in Greenwich for speeding. The trooper determined that PETERSON did not have a license and subsequently performed a search. After the trooper felt a plastic bag of containing crack cocaine in PETERSON’s jacket and attempted to pull it out, PETERSON ran from the officer. PETERSON then threw the bag of crack, as well as two bags containing oxycodone pills, onto the highway. Although the narcotics were dispersed or destroyed by vehicles traveling on the highway, the trooper was able to recover nearly 190 grams of crack, 147 30-mg oxycodone pills, and an additional amount of crushed oxycodone powder. PETERSON was placed under arrest at the scene.
The investigation revealed that PETERSON was on his way to Vermont to distribute the drugs.
PETERSON has been detained since his arrest. On June 6, 2013, he pleaded guilty to one count of possession with intent to distribute 28 grams or more of cocaine base (“crack cocaine”).
PETERSON’s criminal history includes a Vermont state conviction for selling cocaine. He was sentenced to 18 months of imprisonment on that conviction and was on probation at the time of his federal arrest.
This matter was investigated by Connecticut State Police and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
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[email protected]New Orleans Police Officers, Rafael Dobard and Quincy Jones, Plead Guilty to Theft Conspiracy and Wire Fraud ConspiracyRead the Press Release
RAFAEL DOBARD, age 39, and QUINCY JONES, age 33, both New Orleans Police Department (“NOPD”) narcotics detectives, pled guilty today before U.S. District Court Judge Nannette Jolivette Brown, to conspiracy to commit theft from programs receiving federal funds and conspiracy to commit wire fraud, announced U. S. Attorney Kenneth Allen Polite, Jr. Judge Brown set sentencing of both defendants on June 19, 2014 at 10:00 am.
According to court documents, DOBARD and JONES both admitted that they conspired to enrich themselves and others by obtaining NOPD confidential informant funds by fraud and by corruptly making payments to other officers in their unit. They also admitted that they conspired to commit wire fraud by submitting NOPD timesheets that indicated they were working on duty for the NOPD when, in fact, they were working at non-NOPD detail jobs.
DOBARD and JONES have served as NOPD officers for eight and eleven years, respectively. Both officers were most recently assigned as detectives to NOPD’s Fourth District Narcotics Unit and are currently suspended.
The maximum penalty for conspiracy to commit theft from programs receiving federal funds is five years imprisonment and a $250,000 fine. The maximum penalty for conspiracy to commit wire fraud is twenty years imprisonment and a $250,000 fine. Any term of imprisonment must be followed by a term of supervised release of up to three years.
The case was investigated jointly by the Federal Bureau of Investigation and the NOPD Public Integrity Bureau. The case is being prosecuted by Assistant United States Attorney Mark A. Miller and Special Assistant United States Attorney Michael B. Redmann, who is detailed to the U.S. Attorney’s Office from the Orleans Parish District Attorney’s Office.
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Nashville Gang Member Sentenced to Life in Prison for Drug Trafficking and Firearms Offenses Near Elementary SchoolRead the Press Release
Four Life Sentences Imposed by the Court
Christopher Ray Moody, 30, of Nashville, Tenn., was sentenced today in U.S. District Court, to life in prison, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Moody was convicted by a jury on November 25, 2013, of all eight charges against him involving drug trafficking and firearms offenses. Moody’s crimes were committed from 2008 – 2011 and many were committed in and near specially protected areas around schools and public housing.
U.S. Attorney David Rivera stated, “This defendant had multiple previous convictions for drug trafficking, firearms, and violent crime. He continued committing crimes even while on bond or on probation for state offenses. He had no intention of turning away from a lifestyle of crime, as evidenced by the video recording introduced at trial in which he said he was taking penitentiary chances every day, and was never going to stop. The four life sentences imposed against him stops him cold, and helps protect this community and the children at the elementary school near his drug house. This is another example of using federal laws to remove armed recidivist gang members from our streets."
According to the proof at trial, Moody was a 98 Mafia Crip street gang member and repeatedly cooked multiple ounces of crack cocaine for distribution at a residence near Jones Paideia Elementary School, in Nashville. Moody kept firearms at this location, including a compact semi-automatic style firearm which he had previously obtained in a drug transaction.
Moody was arrested on unrelated state charges in April 2009. While he was incarcerated on these charges, investigators determined that Moody had instructed his girlfriend to hold his drugs and a gun for him so that he could start drug trafficking again when he completed his state sentence. Moody was released from custody in May 2010 and the evidence showed he went back to drug trafficking at the same residence.
A federal search warrant was issued in February 2011 and resulted in the Moody’s arrest, as well as the seizure of evidence showing that he cooked crack cocaine. Shotgun shells were also found at the home and the trial proof showed that Moody possessed a shotgun at that location during drug deals. Moody was also a previously convicted felon, and was found to be illegally in possession of firearms and ammunition.
The investigation was conducted by the FBI and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Sunny A.M. Koshy and Lynne T. Ingram represented the United States.
Narwhal Tusk Trafficker Convicted of Conspiracy and Money LaunderingRead the Press Release
Andrew L. Zarauskas, 60, of Union, N.J., was found guilty today by a federal jury in Bangor, Maine, of illegally trafficking and smuggling narwhal tusks, and associated money laundering crimes, announced Robert G. Dreher, Acting Assistant Attorney General for the Environment and Natural Resources Division .
The defendant was convicted of conspiracy, money laundering conspiracy, smuggling, and money laundering violations for buying narwhal tusks knowing the tusks had been illegally imported into the United States from Canada, as well as selling or attempting to sell the tusks after their illegal importation.
“The Justice Department takes seriously our responsibility to prosecute those who engage in the illegal trade of any protected wildlife species,” said Acting Assistant Attorney General Dreher. “Zarauskas and his co-conspirators flouted U.S. law and international agreements that protect marine mammals such as the narwhal for their own personal financial benefit. The Justice Department will continue to investigate and prosecute those engaged in this insidious trade in order to protect species for future generations to enjoy.”
"The success of this investigation was a direct result of the uncompromising cooperation between special agents of the U.S. Fish and Wildlife Service, NOAA and Environment Canada. It is this type of international teamwork which exemplifies the ongoing fight against illegal wildlife trafficking." said William C. Woody, Assistant Director for Law Enforcement for the U.S. Fish and Wildlife Service.
“This investigation is an example of excellent coordinated efforts between NOAA, Office of Law Enforcement (OLE) and the U.S. Fish and Wildlife Service, Office of Law Enforcement” said Logan Gregory, Special Agent In Charge for NOAA. The protection of Marine Mammals and enforcement of the Marine Mammal Protection Act is a high priority for OLE and we will continue to work with our enforcement partners and the Department of Justice to ensure compliance.”
From 2002 to 2008, Zarauskas knowingly purchased approximately 33 narwhal tusks that he knew were illegally imported into the United States in violation of federal law. A narwhal is a medium-sized whale with an extremely long tusk that projects from its upper left jaw, often referred to as the unicorn of the sea. As marine mammals narwhals are protected by the Marine Mammal Protection Act and are listed on Appendix II of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). It is illegal to import parts of marine mammals into the United States without the requisite permits/certifications, and without declaring the merchandise at the time of importation to U.S. Customs and the U.S. Fish and Wildlife Service. Narwhal tusks are commonly collected for display purposes and can fetch large sums of money.
According to evidence presented at the trial, Zarauskas conspired with others, including persons located in Canada, to illegally import the protected tusks for re-sale in the United States and to launder the funds used to purchase the narwhal tusks by transporting, transmitting, or transferring checks and money orders from New Jersey to Canada, intending that the money be used for further illegal imports of narwhal tusks.
On Jan. 7, 2014, Jay G. Conrad, of Lakeland, Tenn., who had been charged in the same indictment, pleaded guilty to conspiring to illegally import and traffic narwhal tusks, conspiring to launder money, and illegally trafficking narwhal tusks. On that same date, a plea agreement was also unsealed in which Eddie T. Dunn, of Eads, Tenn., pleaded guilty in the District of Alaska to conspiring to illegally traffic, and trafficking, narwhal tusks.
Throughout the conspiracy, Zarauskus and his co-conspirators made payments to the Canadian supplier for the narwhal tusks, by sending the payments to a mailing address in Bangor, Maine, or directly to the supplier in Canada. The payments allowed the Canadian supplier to purchase and re-supply Zarauskus and Conrad with more narwhal tusks that they could then re-sell. Conrad sold between $400,000 and $1 million worth of narwhal tusks and Dunn sold approximately $1.1 million worth of narwhal tusks as members of the conspiracy.
Earlier this week, President Obama announced the National Strategy for Combating Wildlife Trafficking, recognizing that record high demand for wildlife products, coupled with inadequate preventative measures and weak institutions has resulted in an explosion of illicit trade in recent years. Like other forms of illicit trade, wildlife trafficking undermines security across nations. While t he Department of Justice has long worked to protect threatened and endangered wildlife species through its enforcement of the Lacey Act and the Marine Mammal Protection Act, among other laws, the National Strategy identifies priority areas for increased interagency coordination, with the objectives of harnessing and strategically applying the full breadth of U.S. Government resources to end the pernicious trade in protected species both at home and abroad.
Zarauskus and Conrad are to be sentenced by U.S. District Court Judge John A. Woodcock in the District of Maine. A sentencing date has not been set. They each face a maximum of twenty years incarceration for their involvement in this narwhal tusk trafficking scheme, and a fine of up to $250,000. Dunn is scheduled to be sentenced by U.S. District Judge Ralph R. Beistline in the District of Alaska on March 20, 2014, and may be imprisoned up to five years and fined $250,000. Co-defendant Gregory R. Logan is pending extradition from Canada to the District of Maine.
The case was investigated by agents from National Oceanic and Atomospheric Administration Office of Law Enforcement, the United States Fish and Wildlife Service Office of Law Enforcement and in coordination with Environmental Canada Wildlife Enforcement Division and the Department of Justice’s Office of International Affairs. The case is being prosecuted by Trial Attorneys Todd S. Mikolop and James Nelson of the Justice Department’s Environmental Crimes Section.More Than $10 Million to Be Returned to Victims of Traders International Return Network FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that the U.S. Department of Justice has authorized the return of $10,129,254.56 to victims of the Traders International Return Network (TIRN) fraud. Operators of TIRN deceived investors by making claims that investments in TIRN, as advertised on www.MyTirn.com, would yield exceptionally high returns not achievable anywhere in the legitimate business world. These claims were made via the Internet and at business opportunity meetings. Specifically, investors were told they could receive between 9% and 22% in returns on their investment, per month. While TIRN advertised on its website that investments were made in the FOREX market, the buying and selling of commodities, the purchase of gold mines in Africa, and the buying and selling of real estate, such investments were not actually made on behalf of TIRN's investors.
TIRN investors were not actually told where their money was being invested. TIRN's website merely indicated that it “pool[ed] investor funds” for the investments and that "professional money managers" managed such investments. However, federal law requires that entities or individuals be licensed and registered in order to serve as a pool operator for the purpose of purchasing commodities. Neither TIRN nor any of its operators held any type of investment license with the National Futures Association or the Commodities and Futures Trading Commission.
In total, TIRN collected more than $15 million from more than 500 investors (both domestic and international). TIRN’s operators misappropriated some of those investors' funds for their own personal benefit. They used the money to purchase vehicles, buy homes, pay off home mortgages, and also sent money to accounts that they controlled both in the United States and overseas.
The U.S. Attorney’s Office completed the criminal forfeiture against more than $10 million worth of assets obtained through the TIRN fraud. Three individuals were prosecuted for their roles in this scheme. David Merrick, Japheth Paramanandam, and Nathan Betances all received prison sentences (8 years, 5 years and 5 years, respectively) as a result of their roles in the fraud.
“The enforcement of asset forfeiture laws is an integral part of our law enforcement mission,” said U.S. Attorney A. Lee Bentley, III. “By recovering the ill-gotten gains of criminals, and returning them to victims, we hope to send a clear message to the public – that we will use every tool available to disrupt and dismantle criminal activities, and take the profit out of crime.”
This case was investigated by the United States Secret Service. The forfeitures were handled by Assistant United States Attorney Nicole Andrejko.
Victims of this scheme were notified throughout the criminal process, and as a result, had an opportunity to share in the forfeiture proceeds. Official decisions and remission distributions have already occurred. The Department of Justice is no longer accepting petitions for remission.
Mizrahi Bank Client Pleads Guilty to Filing False Tax ReturnRead the Press Release
Monajem Hakimijoo, also known as Manny Hakimi, of Beverly Hills, Calif., pleaded guilty on Feb. 13, 2014, in the U.S. District Court for the Central District of California to filing a false federal income tax return for tax year 2007, the Justice Department and Internal Revenue Service (IRS) announced today.
According to court documents, Hakimijoo, a U.S. citizen, and his brother maintained an undeclared bank account in Israel at Mizrahi Bank in the name of Kalamar Enterprises, a Turks and Caicos Islands entity they used to conceal their ownership of the account. Hakimijoo and his brother used the funds in the Kalamar account as collateral for back-to-back loans obtained from the Los Angeles branch of Mizrahi Bank. Although Hakimijoo and his brother claimed the interest paid on the back-to-back loans as a business deduction for federal tax purposes, they failed to report the interest income earned in their undeclared, Israel-based account as income on their tax returns. In total, Hakimijoo failed to report approximately $282,000 in interest income. The highest balance in the Kalamar Enterprises account was approximately $4,030,000.
According to court documents, in March 2013, Hakimijoo was scheduled to be interviewed by Justice Department attorneys and IRS special agents. Prior to the interview, Hakimijoo, through counsel, provided the attorneys and special agents with copies of his amended tax returns for 2004 and 2005. When asked if the amended tax returns had been filed with the IRS, Hakimijoo indicated that the returns had been filed. Shortly thereafter, the IRS determined there was no record of the amended returns being filed with the IRS. When Hakimijoo was asked to provide copies of cancelled checks to prove that the taxes reflected on the amended returns had been paid, none were provided.
Hakimijoo is the latest in a series of defendants charged in the U.S. District Court for the Central District of California with concealing undeclared bank accounts in Israel that were used to obtain back-to-back loans in the United States.
U.S. citizens and residents who have an interest in, or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III, of their individual income tax returns. They must also file a Report of Foreign Bank and Financial Reports with the U.S. Treasury disclosing the aforementioned financial account(s).
Hakimijoo will be sentenced on April 28, 2014, and faces a statutory maximum prison term of three years and a maximum fine of $250,000. In addition, Hakimijoo has agreed to pay a civil penalty to the IRS in the amount of 50 percent of the highest balance of his one-half interest in the Kalamar account.
Assistant Attorney General Kathryn Keneally of the Tax Division and U.S. Attorney André Birotte Jr. for the Central District of California thanked special agents of IRS-Criminal Investigation, who investigated the cases, Senior Litigation Counsel John E. Sullivan and Assistant Chief Elizabeth C. Hadden for the Tax Division, who prosecuted the cases, and Assistant U.S. Attorney Sandra A. Brown of the U.S. Attorney’s Office, who assisted with the prosecutions.
Additional information about the Tax Division and its enforcement efforts may be found at the division's website .
Missouri Man Sentenced to Federal PrisonFor Two Attempted Bank RobberiesRead the Press Release
KANSAS CITY, KAN. A Missouri man was sentenced Wednesday to 210 months in federal prison for two attempted bank robberies, including one in Anderson County, Kan., during which he exchanged shots with law enforcement officers, U.S. Attorney Barry Grissom said.
Daniel Lee Waddell, 29, Carthage, Mo., pleaded guilty to two counts of attempted bank robbery. In his plea, he admitted that on March 5, 2013, he and co-defendant Stephen Hudson drove to Kincaid, Kan., where they attempted to rob the Citizens State Bank at 201 North Commercial Street. Hudson parked the car near the bank. Waddell got out and pulled on the bank’s doors only to find them locked. Waddell returned to the car and the two drove away from the bank. When law enforcement officers pursued them, Waddell fired his gun at the officers before he and Hudson were taken into custody.Waddell also admitted that on July 2, 2012, he entered the Corner Stone Bank in Langan, Mo., armed with an SKS Chinese rifle. He walked up to a teller window and shouted: You’ve got five seconds to do what I say.” Bank employees dropped to the floor behind bullet proof glass and activated an alarm. Waddell fled the bank and drove away with Hudson at the wheel.
Waddell also told investigators he obtained the guns used in the bank robberies while assisting in the tornado cleanup in Joplin in May 2011.
Co-defendant Stephen Hudson is awaiting sentencing.
Grissom commended the Kansas Bureau of Investigation, the Anderson County Sheriff’s Office, the FBI and Assistant U.S. Attorney Jabari Wamble for their work on the case.Mission Man Indicted for Burglary, Assault, Use of A Firearm During A Crime of Violence, and A Controlled Substance ChargeRead the Press Release
United States Attorney Brendan V. Johnson announced that a Mission, South Dakota, man has been indicted by a federal grand jury for First Degree Burglary, Assault with a Dangerous Weapon, Use of a Firearm During a Crime of Violence, and Possession with Intent to Distribute a Controlled Substance.
Rigoberto Ortiz, age 45, was indicted on February 12, 2014. He appeared before U.S. Magistrate Judge Veronica L. Duffy on February 14, 2014, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and up to $500 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about December 18, 2013, Ortiz unlawfully entered a residence, assaulted two victims with a firearm, and possessed marijuana that he intended to distribute.The charges are merely accusations and Ortiz is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Ortiz was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mexican National Sentenced to 15 Years for Illegal Firearms, MethRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Mexican national was sentenced in federal court today for his role in conspiracies to distribute a large quantity of methamphetamine and to illegally possess firearms.
Armando Dominguez-Morales, 33, a citizen of Mexico, was sentenced by U.S. District Judge Fernando J. Gaitan to 15 years in federal prison without parole. The court also ordered Dominguez-Morales to forfeit to the government $66,000, which was seized by law enforcement officers.
On Sept. 7, 2012, Dominguez-Morales pleaded guilty to participating in a conspiracy to distribute methamphetamine since January 2008 and to participating in a conspiracy to possess firearms in relation to a drug-trafficking offense.
According to court documents, Dominguez-Morales, an illegal alien, was one of the primary distributors for a drug-trafficking organization that was led by co-defendant Mauricio Ramos-Hernandez, 39, a Mexican national residing in Kansas City, Kan. (who has also pleaded guilty and awaits sentencing). Dominguez-Morales had multiple people selling methamphetamine for him and was a main supplier of the narcotics.
Between Jan. 14, 2009, and Aug. 24, 2010, there were 20 controlled drug purchases from this drug-trafficking organization, totaling nearly 730 grams of actual methamphetamine “ice,” an unusually strong purity and concentration of this addictive controlled substance. In addition to trafficking methamphetamine, Dominguez-Morales engaged in gun trafficking.
This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes, IV. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives NITRO Task Force and the Drug Enforcement Administration.Mexican National Sentenced for Growing Marijuana on Federal Land in Trinity CountyRead the Press Release
SACRAMENTO, Calif. — Andres Reyes Valenzuela, 31, a Mexican national, was sentenced today by United States District Judge Garland E. Burrell, Jr. to three years and one month in prison for cultivating marijuana, United States Attorney Benjamin B. Wagner announced.
According to court documents, in June 2012, federal and state agents raided a marijuana grow site in the Trinity National Forest in Trinity County. Agents first spotted Valenzuela processing marijuana plants. Initially, Valenzuela ran away from law enforcement, but he and a co-defendant were caught and arrested after a short chase. Agents eradicated a total of 7,343 marijuana plants from the cultivation site.
This case was the product of an investigation by the United States Forest Service, Siskiyou County Sheriff’s Office, Trinity County Sheriff’s Office, and the Bureau of Land Management. Assistant United States Attorney Christiaan Highsmith prosecuted the case.
Livery Fleet Owner Sentenced in Manhattan Federal Court to 121 Months for Multimillion-Dollar Insurance ScamRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that SCOTT ERIC SANDERS was sentenced today in Manhattan federal court to 121 months in prison for his participation in a long-running automobile insurance fraud scheme and aggravated identity theft. As part of the scheme, SANDERS, who owns fleets of commercial vehicles, systematically misled insurance companies as to where the vehicles he owned were garaged and operated, and how those vehicles were being used, so that he could obtain automobile insurance for those vehicles at substantially lower premiums. SANDERS was convicted in April 2013 of one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, and one count of aggravated identity theft following a four-week jury trial before U.S. District Judge Lewis A. Kaplan, who also imposed today’s sentence.
Manhattan U.S. Attorney Preet Bharara said: “Scott Sanders was convicted of repeatedly falsifying insurance applications to save millions of dollars in premiums. He lied about where the insured vehicles were garaged and operated, as well as about what the vehicles were used for and who actually owned them. He also compounded the felony when he committed the same crime on behalf of other fleet owners. Now he will pay the consequences for his criminal conduct.”
According to evidence introduced at trial, other proceedings in this case, and documents previously filed in Manhattan federal court:
In New York State, owners of fleets of commercial vehicles, including livery cars and ambulettes, are required to obtain commercial automobile liability and physical damage insurance coverage. The automobile insurance policy premiums are based, in part, on where the insured vehicles are garaged and operated as well as how the vehicles are being used. Vehicles that are principally garaged or operated in New York City are charged substantially higher insurance premiums than vehicles that are principally garaged or operated elsewhere in New York and adjoining states. In addition, vehicles that are primarily used as livery cabs are charged substantially higher insurance premiums than vehicles that are operated for many other commercial purposes. Owners of livery fleets obtain automobile insurance through the voluntary insurance market or, when they are unable to obtain insurance through the voluntary market, through the New York Automobile Insurance Plan (“NYAIP”). The NYAIP assigns policy applications to insurance carriers doing business in New York State, who are then required to provide insurance coverage to the applicant.
From at least 2005 through 2010, SANDERS controlled fleets of commercial vehicles that were garaged and operated in New York City. During that time period, SANDERS engaged in a widespread scheme to defraud automobile insurance companies in order to obtain automobile insurance for his vehicles at lower premiums by misrepresenting where the vehicles were garaged and operated, and in some instances, how those vehicles were being used. Specifically, SANDERS caused to be submitted insurance applications to both NYAIP and directly to insurance companies that claimed that SANDERS’s vehicles were garaged and operated outside New York City, when they were not. In addition, on some of those applications, SANDERS represented that SANDERS’s vehicles were being used for commercial purposes other than as livery vehicles when these vehicles were, in fact, being used as livery vehicles. In these insurance applications, SANDERS also listed the names, and in some instances the dates of birth and driver’s license numbers, of other individuals, some of whom had previously rented livery vehicles from SANDERS, as the presidents and owners of SANDERS’s companies, when those individuals were not in fact the presidents or owners of those companies. Relying on these misrepresentations, the insurance companies issued insurance policies for the vehicles controlled by SANDERS at lower premiums than those for which the vehicles would have been eligible had the insurance companies been aware of the true locations of garaging and operation, as well as the true use, of the vehicles.
In addition, as part of the same scheme, SANDERS helped other commercial fleet owners whose vehicles operated in New York City obtain insurance at lower premiums using the same misrepresentations about how those vehicles were being used and where those vehicles were being garaged and operated. Over the course of SANDERS’s scheme, insurance companies lost millions of dollars in premiums that they would have otherwise charged had they been provided accurate garaging, operating, and usage information about the vehicles.
SANDERS was convicted of one count of conspiracy to commit mail and wire fraud, five counts of mail fraud, and one count of aggravated identity theft.
In addition to prison, SANDERS, 42, of Saddle River, New Jersey, was sentenced to three years of supervised release and ordered to pay a fine of $50,000, restitution of $4,878,592.30, and forfeiture of $4,878,592.30.
Mr. Bharara praised the work of the Postal Inspectors from the United States Postal Inspection Service and investigators from the New York Automobile Insurance Plan.
This matter is being handled by the Office’s Complex Frauds Unit. Assistant U.S. Attorneys Paul Krieger and Brent Wible are in charge of the criminal case.
Liverpool Woman Sentenced to 55 Months Imprisonment for Fraud Against the New York State Department of Labor and the Internal Revenue ServiceRead the Press Release
SYRACUSE, NEW YORK – Patricia Harrington, age 50, of Liverpool, New York, was sentenced in U.S. District Court today in connection with her guilty pleas to 11 Wire Fraud, Tax Fraud and Aggravated Identity Theft charges according to U.S. Attorney Richard S. Hartunian.
U.S. District Judge Glenn T. Suddaby sentenced Harrington to 24 months imprisonment in connection with her September 11, 2013 guilty pleas to submitting six false federal tax refund claims in the name of family members, without their knowledge, during 2011 and 2012. She also received a concurrent sentence of 24 months in connection with her guilty pleas to four counts of wire fraud in connection with a scheme to fraudulently obtain monies from the New York State Department of Labor in 2011 and 2012 by submitting false claims for unemployment benefits in the name of various family members, again, without their knowledge. Harrington also received an additional consecutive sentence of 24 months in connection with her guilty plea to Aggravated Identity Theft. Harrington had admitted she used the identity of another person to commit her crimes. She was also ordered to pay restitution to the New York State Department of Labor in the amount of $19,424 and $28,031.86 to the Internal Revenue Service along with interest and penalties.
At the time she committed these offenses she was serving a term of federal Supervised Release in connection with a conviction for a similar fraud scheme in Pennsylvania in 2009. In admitting that she violated the terms of her release, Judge Suddaby sentenced Harrington to serve an additional seven months imprisonment consecutive to the 48 month sentence imposed. She will serve a total of 55 months imprisonment. Upon her release, she is ordered to serve a term of supervised release of three years and ordered to complete 220 hours of community service.
Harrington had been previously prosecuted in Pennsylvania in 2008 for committing identity fraud over a two year period. There, she had submitted a series of fraudulent student loan applications in the names of relatives without their knowledge. In entering a guilty plea in Harrisburg in December 2008, she admitted that she had applied for approximately 13 fraudulent federal student loans, totaling some $139,000. Following her release from prison for that offense, she began serving a term of supervised release in April of 2010, which was transferred to the Northern District of New York. While living in the Syracuse area, she began the new scheme of applying for fraudulent unemployment benefits and federal tax refunds in the name of family members for which she was sentenced today.
U.S. Attorney Richard S. Hartunian stated, “I want to commend the local, state and federal investigators who worked closely together in bringing this case to justice. We will continue our efforts to seek out and prosecute those who seek to defraud honest citizens of their tax dollars.”
“New York State is a national leader in both preventing and identifying Unemployment Insurance Fraud,” said State Labor Commissioner Peter M. Rivera. “Fraud hurts businesses, those who depend on Unemployment Insurance benefits to support a family and all New Yorkers. Today’s sentencing brings to conclusion a case that exemplifies just how adept our investigators are and our mission to ensure anyone who commits fraud is caught.”
The case was investigated by the New York State Department of Labor, Office of Special Investigations, the Onondaga County Sheriff’s Department, the Onondaga County District Attorney’s Office, and the Internal Revenue Service, Criminal Division, Syracuse, New York.
The case was prosecuted by Executive Assistant United States Attorney John G. Duncan.
Leader and A Member of an International Ethnic-Albanian Organized Crime Syndicate Sentenced to 120 Months and 110 Months Respectively for Drug TraffickingRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Gjavit Thaqi, one of the leaders of an international drug trafficking syndicate run by ethnic Albanians located in the United States, Canada and Europe (the “syndicate”), and Robert Rudaj, a member of the syndicate, were sentenced to 120 months and 110 months, respectively. Thaqi, whose 22-year criminal history includes prior convictions for cocaine trafficking and illegal gun trafficking, previously pled guilty to trafficking more than a thousand pounds of marijuana from Canada and Mexico, and large quantities of diverted prescription pills, such as oxycodone. Rudaj, a Career Offender whose criminal career includes multiple prior convictions for assault and burglary, previously pled guilty to trafficking hundreds of pounds of marijuana and to assault. The sentences also included terms of supervised release of five years for both defendants.
The sentences were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; James Hunt, Acting Special Agent-in-Charge of the Drug Enforcement Administration, New York; and James T. Hayes, Jr., Special Agent-in-Charge, Homeland Security Investigations (HSI), New York.
“The sentences announced today hold to account two of the most prolific drug traffickers and violent members of an international criminal syndicate that smuggled narcotics throughout North America and the world. For over a decade, the defendants ran a global clearinghouse for illegal narcotics, with America’s streets and youth their ultimate end point,” stated United States Attorney Lynch. “We will continue to vigorously prosecute those who would poison the streets of our communities with drugs and violence.”
The syndicate operated by Thaqi was comprised of inter-related ethnic Albanian family clans (also known as “fis”) with hundreds of associated members, workers and customers spanning three continents. In operation for more than a decade, the syndicate was responsible for organizing the importation and distribution of tens of thousands of kilograms of hydroponic marijuana from Canada and Mexico, substantial quantities of MDMA from the Netherlands and Canada, hundreds of kilograms of cocaine from Mexico, Colombia, Venezuela and Peru, and large quantities of diverted prescription pills, such as oxycodone. The drugs were distributed in various locations in the United States, including New York, California, Georgia, Colorado and Florida, as well as in Canada and Europe.
The four-year investigation revealed that most of the marijuana smuggled from Canada and Mexico was concealed in tractor trailers, typically in hundred pound quantities, with some shipments weighing as much as 1,200 pounds. The marijuana shipments were stored in warehouses and stash locations throughout Brooklyn, Queens and the Bronx, before distribution. Kilogram quantities of cocaine were obtained from sources in the United States and exported to Albania and other locations in Europe concealed in hidden compartments inside luxury automobiles – ostensibly under the auspices of legitimate car dealerships which were actually controlled by syndicate members. Until the arrests of its members in July 2011, members of the syndicate, including Thaqi, were involved in negotiations to obtain hundreds of kilograms of cocaine from sources in South America for transport through the United States to Canada and Europe. Thaqi and other members of the syndicate were also involved in obtaining large shipments of oxycodone, and distributed thousands of oxycodone pills in New York which had been diverted from pain clinics in Florida.
Members of the syndicate were undeterred from committing further violence even after their arrest. For example, defendant Rudaj, who was often used by the syndicate to intimidate drug trafficking associates who owed the syndicate drug proceeds, was involved in the brutal assault of a fellow inmate at the Metropolitan Detention Center in Brooklyn, New York.
During the course of the investigation, federal agents seized more than 1,200 pounds of marijuana, approximately $2,000,000 in suspected drug proceeds, 22 handguns, a military/police-issue assault rifle and hundreds of rounds of ammunition. In total, 49 members and associates of the syndicate have been convicted in the case.
U.S. Attorney Lynch expressed her grateful appreciation to the DEA Special Operations Division, the Department of Justice Office of International Affairs, DEA Newark Division, DEA Denver Division, DEA Miami Division, DEA Albany District Office, DEA Rome Country Office, the HSI Attache in Vienna, HSI Attache in Toronto, HSI Albany Office, HSI Denver Office, HSI Newark Office, HSI Miami Office, the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the Monmouth County (New Jersey) Prosecutor’s Office, the Westchester District Attorney’s Office and the New York Attorney General’s Office for their assistance.
The sentencing proceedings were held before by U.S. District Judge Dora L. Irizarry.
The government’s case is being prosecuted by Assistant United States Attorneys Steven Tiscione, Gina Parlovecchio and Claire Kedeshian.
The Defendants:
GJAVIT THAQI
Age: 43
ROBERT RUDAJ
Age: 40
Lafayette Resident Sentenced to 120 Months in Prison for His Role in A Drug Conspiracy Distribution RingRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that John Cedric Dauphin, 36, of Lafayette, was sentenced by U.S. District Judge Elizabeth Foote to 120 months in prison and five years of supervised release for conspiracy with intent to distribute and distribution of cocaine. Dauphin pleaded guilty on October 17, 2013.
Dauphin along with co-defendants German Rodriguez, Tyrone Thibeaux, Fernellis Woods, and Glenn Charles, were indicted in April 2012 for conspiracy to possess with intent to distribute cocaine between August 2008 and April 2011. Depending on their respective roles, they participated in distributing between 5 and 10 kilos of cocaine. According to evidence presented at the guilty pleas, Rodriguez supplied multi-kilogram quantities of cocaine from Houston to a large scale Lafayette drug trafficking/distribution organization that included Dauphin, Charles, Woods and Thibeaux.
Rodriguez, Charles, Thibeaux and Woods previously pleaded guilty to conspiracy with intent to distribute and distribution of cocaine. Rodriguez is scheduled for sentencing March 14, 2014, and Thibeaux is scheduled for sentencing on April 11, 2014. Woods was sentenced on October 18, 2013, to 135 months in prison with five years of supervised release, and Charles was sentenced on December 12, 2013, to 71 months in prison with five years of supervised release.
The Drug Enforcement Administration, the Carencro Police Department, the Houston Texas Police Department and the Waller County Texas Sheriff’s Office participated in this OCDETF investigation. Assistant U.S. Attorney Howard C. Parker prosecuted the case.
The defendants were arrested as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Kane County Man and Co-Defendant Sentenced to Federal Prison Terms for $6.6 Million Financing Fraud SchemeRead the Press Release
CHICAGO ― Two defendants who engaged in a fraudulent financing scheme involving the offer and sale of investments in four Las Vegas companies were sentenced to 3½ and four years in federal prison, respectively, for defrauding approximately 125 investors of about $6.6 million, including some victims who lost some or all of their retirement or college savings funds.
RODERICK RIEMAN, 69, of St. Charles, who owned and operated Innovative Financial Services, Inc., a former insurance and investment business in St. Charles, was sentenced to four years in prison and ordered to begin serving his sentence on May 27. MICHAEL CROOK, 55, of Los Angeles and formerly of Chicago and Las Vegas, the former president of the Las Vegas companies, which purportedly engaged in interactive kiosks, prepaid debit cards, and restaurant reservation software, was sentenced to 42 months in prison and ordered to begin serving his sentence on June 24.
U.S. District Judge Harry Leinenweber, who sentenced both men yesterday, also ordered each to pay $6.6 million in restitution.
Crook, was president of Z Touch Systems, Inc., Global Payment Solutions, Inc., Bluko Information, Inc., and Smart Restaurant Solutions, Inc., and Rieman, through his company and salesmen working for him, was primarily responsible for making the offers and sales of investments in Crook’s companies. Crook cooperated with the government’s investigation and both defendants pleaded guilty to mail fraud after they were indicted in 2011.
According to court documents, between 2004 and August 2007, Crook and Rieman misrepresented the expected return on investments, the risks associated with the investments, the existence and value of collateral, the use of proceeds, the source of funds used to make promised payments, the status of investments, and the financial condition and business transactions of the companies. They misappropriated a part of the funds raised to make Ponzi-type payments to investors and to benefit companies and individuals other than those directly relating to the particular investment.
For example, the defendants offered and sold investments in interactive kiosks called “ODIEs” (On Demand Interactive Environments), purportedly manufactured and sold by Z Touch. The investments offered an annual return of 18 percent in monthly payments, repayment of principal in 36 months and a security interest in a particular ODIE. Although the defendants offered and sold more than 250 of these investments, only a small number of ODIEs were ever built, none were successfully placed in businesses, and no revenues were generated.
One victim, a retired school teacher, made two separate investments totaling $500,000 of her retirement funds in what Rieman purported were 27 ODIEs and, ultimately, she lost more than $400,000 of her investment.
The government was represented by Assistant United States Attorneys Edward G. Kohler and Kruti Trivedi.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Illinois Department of Securities assisted in the investigation.
Justice Department Finds Substantial Evidence of Gender Bias in Missoula County Attorney’s OfficeRead the Press Release
Today, the Department of Justice issued a letter of findings describing problems in the Missoula County, Mont., Attorney’s Office’s response to sexual assault, and concluding that there is substantial evidence that the County Attorney’s response to sexual assault discriminates against women. The department opened civil pattern or practice investigations of the Missoula County Attorney’s Office, along with the Missoula Police Department and the University of Montana’s Office of Public Safety, in May 2012. The department investigations, brought under the Violent Crime Control and Law Enforcement Act of 1994, and the anti-discrimination provisions of the Omnibus Crime Control and Safe Streets Act of 1968, focused on allegations that the three law enforcement agencies were systematically failing to protect women victims of sexual assault in Missoula. The department, along with the Office for Civil Rights at the Department of Education, also opened an investigation of the University of Montana’s handling of allegations of sexual assault and harassment of students under Title IV of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972. The investigation of the Missoula Police Department and both investigations of the University of Montana were resolved in May 2013, via cooperative agreements with the Justice Department.
“Prosecutors play a critical role in ensuring that women victims of sexual assault have effective and equal access to criminal justice,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We uncovered evidence of a disturbing pattern of deficiencies in the handling of these cases by the County Attorney’s Office, a pattern that not only denies victims meaningful access to justice, but places the safety of all women in Missoula at risk. We hope that this letter will enable us to move forward with constructive discussions with the County Attorney to resolve these serious concerns.”
The department’s investigation uncovered evidence indicating that the Missoula County Attorney’s Office engages in gender discrimination in violation of the Equal Protection Clause of the 14th Amendment to the Constitution as well as relevant federal laws. In particular, the investigation found evidence that the decisions of the County Attorney’s Office regarding the investigation and prosecution of sexual assaults and rape, particularly non-stranger assaults and rapes, are influenced by gender bias and gender stereotyping and adversely affect women in Missoula. The investigation found that the following, taken together, strongly suggest gender discrimination:
· Despite their prevalence in the community, sexual assaults of adult women are given low priority in the County Attorney’s Office;
· The County Attorney does not provide Deputy County Attorneys with the basic knowledge and training about sexual assault necessary to effectively and impartially investigate and prosecute these cases;
· The County Attorney’s Office generally does not develop evidence in support of sexual assault prosecutions, either on its own or in cooperation with other law enforcement agencies
· Adult women victims, particularly victims of non-stranger sexual assault and rape, are often treated with disrespect, not informed of the status of their case and revictimized by the process; and
· The County Attorney’s Office routinely fails to engage in the most basic communication about its cases of sexual assault with law enforcement and advocacy partners.
“Over the past eight months, the City of Missoula, the University of Montana and the Missoula Police Department already have made important strides toward improving their response to sexual assault and strengthening the community’s confidence in its local police,” said U.S. Attorney Michael Cotter for the District of Montana. “It is our sincere hope that the Missoula County Attorney will follow that example and work cooperatively with the Justice Department to address the deficiencies identified in our investigation, and to improve the safety of women in this community.
The investigation was conducted jointly by the Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the District of Montana. The prevention of sex-based discrimination is a top priority of the Civil Rights Division and U.S. Attorney’s Offices. The Civil Rights Division has worked to ensure that women are not subject to discriminatory practices by law enforcement in New Orleans, Puerto Rico and elsewhere. Additional information about the Civil Rights Division is available on its website. Additional information about the U.S. Attorney’s Office for the District of Montana can be found on its website.
Jury Convicts Paxton, Ill. Man for Running Large-Scale Cocaine Trafficking Network in Central IllinoisRead the Press Release
Urbana, Ill. – A jury has found a Paxton, Ill., man, Eddi Ramirez, 32, guilty of running a cocaine trafficking network that regularly distributed large quantities of cocaine throughout central Illinois including Decatur, Springfield and Champaign. The jury deliberated approximately one and one-half hours yesterday afternoon before finding Ramirez, aka "Migo," guilty of conspiring with others to distribute cocaine and distribution of cocaine.
During the seven days of trial, the evidence the government presented included that obtained from a court-authorized wiretap of seven of Ramirez’s telephones, the seizure of approximately $855,716 in cash; nearly nine kilograms (nearly 20 pounds) of cocaine seized in Springfield, Elgin and Houston, Texas; and approximately three kilograms (six pounds) of heroin. That evidence established that Ramirez led a drug organization, from 2011 to September 2012, that was responsible for the importation of more than 200 pounds of cocaine from Mexico.
Evidence further established that Ramirez used multiple sources in Texas, Arizona and Chicago, various couriers to transport the cocaine to central Illinois, and then provided the cocaine, valued at more than $3 million, to dealers in central Illinois. Government evidence also established that Ramirez used a house at 76 E. Court Drive, in Decatur, Ill., as a ‘stash’ house to store and package cocaine and to move drug money.
Sentencing for Ramirez is scheduled for May 21, 2014. Ramirez faces a statutory mandatory minimum penalty of 20 years to life in prison because the government has filed notice that Ramirez has a prior felony drug conviction. Ramirez has remained in law enforcement custody since his arrest in September 2012.In total, 19 defendants have been charged for their ties to Rameriz and his operation. All the defendants, except three who remain fugitives, have previously entered pleas of guilty for their respective roles in the trafficking network or their relation to it. A list of those defendants is attached.
Known as "Operation Tres Ciudades (Three Cities,)" the Organized Crime Drug Enforcement Task Force (OCDETF) was led by the Drug Enforcement Administration, Springfield Resident Office. Law enforcement agencies participating in this investigation include the FBI, Springfield Division; Decatur Police Department; Springfield Police Department; the Illinois State Police, the Central Illinois Enforcement Group; the Illinois Attorney General’s Office; and, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The U.S. Immigration and Customs Enforcement Homeland Security Investigations also provided assistance in the investigation. Assistant U.S. Attorney Timothy A. Bass is prosecuting the cases in the Central District of Illinois, Springfield and Urbana Divisions.
“Law enforcement, especially DEA, FBI, the Illinois Attorney General’s Office, and the Decatur Police Department, devoted significant resources and tireless work toward this successful prosecution,” said Jim Lewis, U.S. Attorney for the Central District of Illinois. “Their hard work and teamwork over the past few years has shut down a major pipeline that pumped volumes of illegal drugs into our community. They truly served the community.”
Special Agent in Charge Jack Riley, DEA, Chicago Division, praised the hard work and dedication of all the law enforcement officers and prosecutors who worked tirelessly to bring this case to a successful conclusion. "The conviction of Eddi Ramirez sends a clear message that the law enforcement community will use every legal means available to bring those who traffic narcotics to justice. Our top priority is dismantling these drug trafficking organizations who peddle their poison in our communities. Our joint efforts in this investigation have made a real impact on the supply of drugs in Central Illinois," he added.
Decatur Police Chief Todd Walker said, “The conviction of Eddi Ramirez demonstrates yet again the importance and value of local and federal law enforcement authorities working together. I appreciate the work of the investigators and the prosecutor who worked diligently to expose and shut down a major narcotics trafficking organization. This was a complex investigation that transcended state lines, into Decatur and central Illinois. As a result of these efforts, the local drug trade in our region was disrupted and the quality of life improved for those jurisdictions impacted by this substantial drug organization.”
David A. Ford, Special Agent in Charge, FBI Springfield, stated, “The Organized Crime Drug Enforcement Task Force (OCDETF) program was established to mount a comprehensive attack against organized drug trafficking. The guilty verdict in this international drug trafficking case demonstrates the strong working partnership between federal and local law enforcement agencies and shows the effectiveness of working together on the same team. We are committed to pursuing violent drug traffickers in order to keep our neighborhoods safe for our citizens.”
“This successful prosecution has significantly slowed the flow of these illegal drugs into Illinois, said Illinois Attorney General Lisa Madigan. “My office’s investigators will continue to work closely with our federal law enforcement partners to crack down on the drug trade in our communities.”Joseph Thomas Obresley Sentenced for Drug ViolationsRead the Press Release
The United States Attorney's Office announced that during a federal court session in Missoula, on February 12, 2014, before U.S. District Judge Donald W. Molloy, Joseph Thomas Obresley, was sentenced to 33 months imprisonment followed by 5 years of supervised release. Obresley was sentenced in connection with his October 8, 2013, guilty plea to conspiracy to distribute methamphetamine.
In an Offer of Proof filed by Assistant U.S. Attorney Tara Elliott, the government stated that on June 28, 2013, as part of a controlled drug enforcement operation, task force officers arranged to meet with an individual who was obtaining methamphetamine intending to sell the drugs to agents acting in an undercover capacity.
After the individual had indicated that he had the methamphetamine, members of the task force responded and the individual and others were arrested. Approximately 225 grams of methamphetamine were recovered from the individual's vehicle.
The investigation revealed that Obresley had brokered the June 28, 2013 drug deal.
John P. Gizzi Sentenced for Tax CrimesRead the Press Release
ROCHESTER, N.Y.-- United States Attorney William J. Hochul, Jr., announced that John P. Gizzi, 65, of Rochester, New York, who previously pled to filing false tax returns for 2008 and 2009, was sentenced today to 1 year of home confinement, 5 years of probation, and ordered to pay a $15,000 fine by United States District Judge Frank P. Geraci. Previously, a business that Gizzi owned, Rochester Business Machines Supplier, Inc., was sentenced to pay a fine of $500,000.
In imposing this sentence, the Court noted that Gizzi and his business had paid the United States approximately $11.5 million in back taxes, fraud penalties, interest, fines and forfeitures, in this and related tax proceedings. The Court also expressed concern that, given Gizzi’s serious and complicated health condition, a sentence that included a term of imprisonment and separated Gizzi from his physicians could potentially be fatal. The Court rejected the defense’s request for probation with no home confinement.
Assistant United States Attorney John J. Field, who handled the case, stated that Gizzi criminally cheated the United States out of $1,901,633 in federal income taxes that he owed over a period of 6 years.
The plea was the culmination of an investigation on the part of Special Agents of the Internal Revenue Service, Criminal Investigations division, under the direction of Tony Weirauch .Jacksonville Man Indicted by Federal Grand Jury for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Shaun Andrew Copenhaver (28, Jacksonville) was indicted by a federal grand jury yesterday on three counts of receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years in federal prison on each of the three counts. Copenhaver was arrested pursuant to a criminal complaint on February 6, 2014. On February 10, 2014, he was ordered detained pending the resolution of the case. His arraignment is scheduled for February 19, 2014, at 2:00 p.m., before United States Magistrate Judge Monte C. Richardson.
According to the criminal complaint, on February 6, 2014, agents with the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Jacksonville Sheriff's Office executed a federal search warrant at Copenhaver's residence, after conducting an undercover online investigation. Copenhaver was at the residence and was interviewed by agents. During the interview, Copenhaver indicated that he used a particular file sharing program and certain search terms to search for and download child pornography videos “many times,” and that he had saved child pornography to his hard drive on his desktop computer. He stated that the hard drive was encrypted with a password, and that he knew child pornography would be discovered on the drive. An onsite examination of one of Copenhaver's computer disk drives revealed that it contained child pornography.
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 Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case 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.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney's Office today announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Judge Strong in Great Falls on February 11, 2014 and entering pleas of Not Guilty were:
- DAVID J. LEWIS, a 50-year-old resident of Brockton, appeared on charges of first degree murder and second degree murder. If convicted of the most serious offense charged in the indictment, LEWIS faces life imprisonment, $250,000 in fines and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation and Fort Peck Tribes Department of Law and Justice. PACER Case Reference: 14-06
- JAY HARWOOD OLD CHIEF, a 25-year-old resident of Browning, appeared on charges of aggravated sexual abuse and sexual abuse. If convicted of the most serious offense charged in the indictment, OLD CHIEF faces life imprisonment, $250,000 in fines and lifetime supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference: 14-02
Appearing before U.S. Magistrate Judge Strong in Great Falls on February 12, 2014 and entering pleas of Not Guilty were:
- FRANK ANTHONY TAKALA, a 51-year-old resident of Fairfield, appeared on charges of illegal possession of a machine gun, possession of an unregistered gun, and possession of a gun without a serial number. If convicted of the most serious offenses charged in the indictment, TAKALA faces 10 years imprisonment, $250,000 in fines and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco and Firearms. PACER Case Reference: 14-07
Appearing before U.S. District Judge Watters in Billings on February 13, 2014 and entering pleas of Not Guilty were:
- BRANDON LEE TOUCHETTE, a 36-year-old resident of Billings, appeared on charges of possession with intent to distribute methamphetamine. If convicted of the offense charged in the indictment, TOUCHETTE faces life imprisonment, $5,000,000 in fines and 4 years supervised release. The case was investigated by the Federal Bureau of Investigation and Billings Drug Task Force. PACER Case Reference: 13-83
The indictment is merely a formal charging document. It is not proof of guilt and all persons indicted are presumed to be innocent of any crime until proof of guilt is established by trial or guilty plea.
The U.S. Attorney's Office is currently transitioning its media program to new media contacts. Resources and this transition may affect the amount of information the office can process and disclose in a timely manner. Therefore, if any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html.
To access the district court's calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Independent Contractor in Afghanistan Pleads Guilty for His Role in Offering $54,000 in Bribes to a U.S. Government OfficialRead the Press Release
Earlier today at the federal courthouse in Brooklyn, N.Y., Akbar Ahmad Sherzai, 49, of Centreville, Va., an independent contractor for a trucking company operating in Afghanistan that was responsible for delivering fuel to U.S. Army installations, pleaded guilty to his role in offering a U.S. Army serviceman $54,000 in bribes to falsify documents to reflect the successful delivery of fuel shipments that Army records indicate were never delivered. Sherzai faces a maximum of 15 years imprisonment and a $250,000 fine.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and United States Attorney for the Eastern District of New York Loretta E. Lynch made the announcement.
“The defendant sought to use deception, corruption and greed to enrich his company at the risk of jeopardizing the U.S. Army’s supply lines in Afghanistan,” said U.S. Attorney Lynch. “Attempts to corrupt American officials will not be tolerated, either at home or abroad.” U.S. Attorney Lynch extended her grateful appreciation to the Special Inspector General for the Afghanistan Reconstruction, Homeland Security Investigations and the FBI for their assistance in this case.
The U.S. Army regularly contracts with local Afghan trucking companies to transport U.S. military equipment, fuel, and other supplies throughout Afghanistan. To ensure the companies fulfilled these requests, the U.S. Army used transportation movement requests (TMRs), which, when properly completed, verified that the shipments were successfully completed before approving payments to the trucking companies.
In April 2013, Sherzai approached a U.S. military serviceman to discuss fuel delivery missions that had been classified by the U.S. Army as “no-shows,” meaning that the fuel had not been delivered. Sherzai offered the serviceman a bribe to falsify the TMRs to reflect successful deliveries so that Sherzai’s company would receive payment and avoid penalties for failed fuel deliveries. The serviceman, under the supervision of law enforcement, continued to meet with Sherzai to discuss payments for the falsification of records. On two separate occasions, Sherzai paid the serviceman bribes in cash on American military bases in Afghanistan. On another occasion, Sherzai arranged for the serviceman’s bribe to be transferred to the United States through a hawala, an informal money transfer system. In total, Sherzai paid the serviceman $54,000 in cash to falsify fourteen TMRs. Each “no show” delivery mission, absent the fraudulent TMRs, would have resulted in a fine of the company by the U.S. government of $75,000.
Sherzai was arrested on a criminal complaint on Sept. 24, 2013. The guilty plea proceeding was held before U.S. Magistrate Judge Robert M. Levy.
The government’s case is being prosecuted by Assistant U. S. Attorney Amir H. Toossi and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section.Independent Contractor in Afghanistan Pleads Guilty for His Role in Offering $54,000 in Bribes to A U.S. Government OfficialRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Akbar Ahmad Sherzai, an independent contractor for a trucking company operating in Afghanistan that was responsible for delivering fuel to U.S. Army installations, pleaded guilty to his role in offering a U.S. Army serviceman $54,000 in bribes to falsify documents to reflect the successful delivery of fuel shipments that Army records indicate were never delivered. When sentenced, he faces a maximum of 15 years imprisonment and a $250,000 fine.
The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division.
“The defendant sought to use deception, corruption and greed to enrich his company at the risk of jeopardizing the U.S. Army’s supply lines in Afghanistan. Attempts to corrupt American officials will not be tolerated, either at home or abroad,” stated United States Attorney Lynch. Ms. Lynch extended her grateful appreciation to the Special Inspector General for the Afghanistan Reconstruction, Homeland Security Investigations, and the Federal Bureau of Investigation for their assistance in this case.
The U.S. Army regularly contracts with local Afghan trucking companies to transport U.S. military equipment, fuel, and other supplies throughout Afghanistan. To ensure the companies fulfilled these requests, the U.S. Army used transportation movement requests (TMRs), which, when properly completed, verified that the shipments were successfully completed, before approving payments to the trucking companies.
In April 2013, Sherzai approached a U.S. military serviceman to discuss fuel delivery missions that had been classified by the U.S. Army as “no-shows,” meaning that the fuel had not been delivered. Sherzai offered the serviceman a bribe to falsify the TMRs to reflect successful deliveries so that Sherzai’s company would receive payment and avoid penalties for failed fuel deliveries. The serviceman, under the supervision of law enforcement, continued to meet with Sherzai to discuss payments for the falsification of records. On two separate occasions, Sherzai paid the serviceman bribes in cash on American military bases in Afghanistan. On another occasion, Sherzai arranged for the serviceman’s bribe to be transferred to the United States through a hawala, an informal money transfer system. In total, Sherzai paid the serviceman $54,000 in cash to falsify fourteen TMRs. Each “no show” delivery mission, absent the fraudulent TMRs, would have resulted in a fine of the company by the U.S. government of $75,000.
Sherzai was arrested on a criminal complaint on September 24, 2013. The guilty plea proceeding was held before U.S. Magistrate Judge Robert M. Levy.
The government’s case is being prosecuted by Assistant U. S. Attorney Amir H. Toossi and Trial Attorney Daniel Butler of the Fraud Section, Criminal Division, U.S. Department of Justice.
The Defendant:
AKBAR AHMAD SHERZAI
Age: 49
Centerville, Virginia
Citizenship: Dual United States and Afghanistan
E.D.N.Y. Docket No. 14-Cr-60 (MKB)
Houston Man Pleads Guilty to Producing Child PornographyRead the Press Release
HOUSTON – Daniel M. Layne, 33, of Houston, has been convicted of production of child pornography, announced United States Attorney Kenneth Magidson.
The investigation began in Maine when the mother of a 14-year-old girl discovered a motel key card in her daughter’s pants pocket and sexually graphic text messages on her cell phone. She contacted local authorities who then determined that Layne had traveled to Maine after meeting the girl over the Internet. The investigation revealed Layne had taken sexually explicit photos of the young girl.
As a result of the information gathered in Maine, authorities in the Houston area conducted a search at Layne’s residence on Sept. 24, 2013, at which time they seized computers, a tablet and cell phones from the house. A forensic analysis revealed images of the 14-year-old on the tablet and a cell phone.
U.S. District Judge David Hittner, who accepted the guilty plea today, has set sentencing for May 13, 2014, at which time Layne faces at least 15 and up to 30 years imprisonment and a $250,000 maximum fine. Upon completion of any prison term imposed, Layne also faces a maximum of life on supervised release during which the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet. Layne was arrested on the federal charges in October 2013 and has been in custody since that time where he will remain pending his sentencing.
Homeland Security Investigations and the Harris County Sheriff’s Office investigated the case in conjunction with the Houston Metro Internet Crimes Against Children Task Force and the Westbrook, Maine, Police Department.
This case, prosecuted by Assistant United States Attorney Robert Stabe, 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."
Harry S. Truman Elementary School Invites U.S. Attorney to Talk with Students About Bullying and CyberbullyingRead the Press Release
United States Attorney Alicia A.G. Limtiaco, Districts of Guam and the Northern Mariana Islands, was invited to speak on January 31, 2014, with approximately seventy-five 5th grade students at Harry S. Truman Elementary School, about bullying and cyberbullying, including the dangers and tragic consequences of bullying and cyberbullying, and ways to keep safe.
These students also graduated from the Gang Resistance Education And Training (GREAT) Program in November 2013. The GREAT Program=s primary objective is to raise awareness about and prevent delinquency, youth violence, and gang membership. The GREAT lessons taught by GREAT certified law enforcement officers and aimed at elementary and middle school students, focus on developing life skills to help students avoid delinquent behavior and violence, and learn to solve problems through communication and the exercise of good judgment.
U.S. Attorney Limtiaco at Harry S. Truman Elementary School.
Fifth grade students listening to U.S. Attorney Alicia Limtiaco.Greenfield Doctor Sentenced for Multiple Tax Related CrimesRead the Press Release
BOSTON - A Greenfield, Mass. doctor was sentenced this week in U.S. District Court in Springfield for tax evasion and other charges.
On Feb. 12, Richard C. McGinn, 67, was sentenced by U.S. District Court Judge Michael A. Ponsor to 30 months in prison and two years of supervised release. In 2013, a jury convicted Dr. McGinn of tax evasion, five counts of failing to pay over employment taxes, and failure to file a tax return.
From 2007 until 2009, Dr. McGinn owned and operated a medical practice in Greenfield. During that time, he evaded the payment of a tax liability of over $1 million which he had accumulated from 1987 to 2003. Among other things, Dr. McGinn paid personal expenses with corporate funds, and he used the bank account of a family member to conceal the income from the medical practice. During this time, Dr. McGinn also withheld employment taxes from the paychecks of his employees, and he kept the money for himself, rather than paying the money to the IRS as he was required to do. Additionally, Dr. McGinn failed to file corporate income tax returns for his medical practice.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. The case was prosecuted by Alex J. Grant of Ortiz’s Springfield Branch Unit.
Getaway Driver in Murder of Rhode Island <br /> Gas Station Manager Sentenced to 40 Years in PrisonRead the Press Release
Jose A. Santiago, 36, of Springfield, Mass., was sentenced yesterday in Providence, R.I., to serve 40 years in prison for his role in the September 2010 armed robbery and murder of Woonsocket, R.I., gas station manager David D. Main.
Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, United States Attorney Peter F. Neronha of the District of Rhode Island, Special Agent in Charge Vincent B. Lisi of the FBI’s Boston Field Office, Col. Steven G. O’Donnell of the Rhode Island State Police and Chief Thomas S. Carey of the Woonsocket Police Department made the announcement.
According to court documents, Main, 49, was chased, shot to death at close range and robbed by Jason Wayne Pleau, 36, of Providence, as he approached the doorstep of a Woonsocket bank where he was preparing to deposit thousands of dollars in cash belonging to the gas station. Santiago was the getaway driver of a box truck parked a block away from the bank in which Pleau fled moments after he robbed and fatally shot Main.
Pleau, who pleaded guilty on July 31, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using and discharging a firearm during and in relation to a federal crime of violence resulting in death was sentenced in October 2013 to serve life in prison.
Santiago pleaded guilty on Sept. 5, 2013, to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery, and carrying, using, and discharging a firearm during and in relation to a federal crime of violence resulting in death. No plea agreement was filed in this matter. At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Santiago to serve five years of supervised release upon completion of his prison term.
Co-defendant Kelly Marie Lajoie, 36, of Springfield, pleaded guilty on Dec. 9, 2011, to Hobbs Act conspiracy, aiding and abetting a Hobbs Act robbery and use of a firearm during a federal crime of violence. Lajoie is scheduled to be sentenced on Feb. 19, 2014.
The matter was investigated by the Woonsocket Police Department, Rhode Island State Police and the FBI, with the assistance of the U.S. Marshals Service and the Rhode Island National Guard.
The case was prosecuted by Assistant U.S. Attorneys Adi Goldstein and William J. Ferland of the District of Rhode Island and Trial Attorney Jacabed Rodriguez-Coss of the Criminal Division’s Capital Case Section.Gallatin County Man Pleads Guilty to Methamphetamine Related OffenseRead the Press Release
Johnny W. Hetterscheidt, 37, of Junction, Illinois, pled guilty on February 13, 2014, in United States District Court in Benton to an indictment charging him with unlawfully possessing pseudoephedrine with the intent that it be used to manufacture methamphetamine, announced Stephen R. Wigginton, United States Attorney for the Southern District of Illinois. The indictment, returned by a Federal Grand Jury on November 20, 2013, alleged that the offense occurred on October 11, 2013, in Saline County.
Hetterscheidt faces up to 20 years in prison, up to a $250,000 fine, and 3 years of supervised release to follow his incarceration when sentenced.
Hetterscheidt has been held without bond since his arrest on the federal charges and was again remanded to the custody of the United States Marshal to await sentencing which was set for May 22, 2014, at 10:00 a.m. at the United States District Courthouse in Benton.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and is being prosecuted by Assistant United States Attorney James M. Cutchin.
Four Individuals Sentenced for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of January, four individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS (Judge Frederick P. Stamp, Jr.)
RECECCA BLAKE, age 31, of Cameron, West Virginia, was sentenced to 12 months and 1 day in prison for possession and use of cocaine and marijuana; failure to report for drug testing; associating with persons engaged in criminal activity; and committing another offense of public intoxication and excessive use of alcohol. BLAKE was originally sentenced on March 13, 2005, to 41 months in prison and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a playground. On February 20, 2008, BLAKE’s sentence was reduced to 33 months in prison pursuant to the crack resentencing guidelines. BLAKE will self-report to the designated Federal institution on February 11, 2014.CHARLES REEDER, age 53, of Newell, West Virginia, was sentenced to 12 months and 1 day in prison and two years of supervised release for possession and distribution of marijuana. REEDER was originally sentenced on January 14, 2011, to three years probation for possession with intent to distribute hydrocodone. REEDER will self-report to the designated Federal institution on February 10, 2014.
CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
STEVEN SMITH, age 29, of Clarksburg, West Virginia, was sentenced to 12 months in prison for fleeing from law enforcement and consumption of alcohol. SMITH was originally sentenced on December 16, 2005, to 18 months in prison and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a school. On July 8, 2008, SMITH’s supervised release was revoked for committing the offense of disorderly conduct and obstructing and he was sentenced to 6 months in prison and 66 months of supervised release. On September 2, 2009, SMITH’s supervised release was again revoked for committing the offense of domestic battery, driving under influence, possession of alcohol, use of marijuana and failure to attend scheduled meetings with his tutor at Literacy Volunteers of Harrison County, and he was sentenced to 12 months in prison and 54 months of supervised release. SMITH was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
RASEAN POLLARD, age 27, of Martinsburg, West Virginia, was sentenced to 12 months and 1 day in prison and four years of supervised release for testing positive for use of morphine, suboxone and cocaine, failure to report to probation officer, submitting untruthful monthly reports to probation office, being untruthful with probation officer and failure to notify probation officer of address chance. POLLARD was originally sentenced to 12 months in prison and six years of supervised release for distribution of cocaine within 1,000 feet of a school. On September 11, 2012, POLLARD’s supervised release was revoked for traveling outside travel area without permission from probation office, providing untruthful statements on monthly report to probation office, failure to follow probation officer’s instructions and failure to report law enforcement contact to probation office. POLLARD was remanded to the custody of the United States Marshal pending designation to a Federal institution.The United States was represented at the revocation hearings by Assistant U.S. Attorneys John C. Parr, Randolph J. Bernard, Shawn A. Morgan and Paul T. Camilletti.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Four Individuals Sentenced for Federal Supervised Release ViolationsRead the Press Release
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Chris Zumpetta-Parr, Public Affairs SpecialistWHEELING, WEST VIRGINIA - United States Attorney William J. Ihlenfeld, II, announced that during the month of January, four individuals had their supervised release revoked for violating terms and conditions imposed by the United States District Court.
WHEELING DIVISION REVOCATIONS (Judge Frederick P. Stamp, Jr.)
RECECCA BLAKE, age 31, of Cameron, West Virginia, was sentenced to 12 months and 1 day in prison for possession and use of cocaine and marijuana; failure to report for drug testing; associating with persons engaged in criminal activity; and committing another offense of public intoxication and excessive use of alcohol. BLAKE was originally sentenced on March 13, 2005, to 41 months in prison and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a playground. On February 20, 2008, BLAKE’s sentence was reduced to 33 months in prison pursuant to the crack resentencing guidelines. BLAKE will self-report to the designated Federal institution on February 11, 2014.CHARLES REEDER, age 53, of Newell, West Virginia, was sentenced to 12 months and 1 day in prison and two years of supervised release for possession and distribution of marijuana. REEDER was originally sentenced on January 14, 2011, to three years probation for possession with intent to distribute hydrocodone. REEDER will self-report to the designated Federal institution on February 10, 2014.
CLARKSBURG DIVISION REVOCATIONS (Judge Irene M. Keeley)
STEVEN SMITH, age 29, of Clarksburg, West Virginia, was sentenced to 12 months in prison for fleeing from law enforcement and consumption of alcohol. SMITH was originally sentenced on December 16, 2005, to 18 months in prison and six years of supervised release for the distribution of crack cocaine within 1,000 feet of a school. On July 8, 2008, SMITH’s supervised release was revoked for committing the offense of disorderly conduct and obstructing and he was sentenced to 6 months in prison and 66 months of supervised release. On September 2, 2009, SMITH’s supervised release was again revoked for committing the offense of domestic battery, driving under influence, possession of alcohol, use of marijuana and failure to attend scheduled meetings with his tutor at Literacy Volunteers of Harrison County, and he was sentenced to 12 months in prison and 54 months of supervised release. SMITH was remanded to the custody of the United States Marshal pending designation to a Federal institution.
MARTINSBURG DIVISION REVOCATIONS (Judge Gina M. Groh)
RASEAN POLLARD, age 27, of Martinsburg, West Virginia, was sentenced to 12 months and 1 day in prison and four years of supervised release for testing positive for use of morphine, suboxone and cocaine, failure to report to probation officer, submitting untruthful monthly reports to probation office, being untruthful with probation officer and failure to notify probation officer of address chance. POLLARD was originally sentenced to 12 months in prison and six years of supervised release for distribution of cocaine within 1,000 feet of a school. On September 11, 2012, POLLARD’s supervised release was revoked for traveling outside travel area without permission from probation office, providing untruthful statements on monthly report to probation office, failure to follow probation officer’s instructions and failure to report law enforcement contact to probation office. POLLARD was remanded to the custody of the United States Marshal pending designation to a Federal institution.
The United States was represented at the revocation hearings by Assistant U.S. Attorneys John C. Parr, Randolph J. Bernard, Shawn A. Morgan and Paul T. Camilletti.
The United States Probation Office carries out probation and pretrial services functions throughout the Northern District of West Virginia. With locations in Wheeling, Clarksburg, Martinsburg, and Elkins, the office works to assist the federal courts in the fair administration of justice, to protect the community, and to bring about long-term positive change in individuals under supervision. Jeff Givens is the Chief Probation Officer for the Northern District.
Four from Cleveland Indicted for Euclid Bank RobberyRead the Press Release
Four people from Cleveland were indicted for their roles in robbing a Euclid bank last month, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Germain D. Davis, Jr., 20, Julian Anderson, 23, Shawn Caldwell, 22, and Dejuan Brown, 24, were each indicted on one count each of armed bank robbery and one count of using and carrying a firearm during and in relation to a crime of violence.
The indictment alleges that the four men aided and abetted one another in robbing a PNC Bank in Euclid, Ohio, on January 24, 2014. It further alleges that the robbers stole approximately $39,900 from the bank and that they carried and brandished firearms during the robbery.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendants’ prior criminal record, if any, the defendants’ role in the offense, and the characteristics of the violation. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorney M. Kendra Klump and Michelle M. Baeppler following an investigation by the Federal Bureau of Investigation and the Euclid Police Department.
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.
Former Wayne County Chief Information OfficerSentenced to Prison for Taking $70,000 in BribesRead the Press Release
The former Chief Information Officer of the Wayne County government was sentenced to 57 months in prison today for taking $70,000 in bribes from a businessman who had millions of dollars in contracts with Wayne County, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by FBI Special Agent in Charge Paul M. Abbate.
During a hearing today before U.S. District Judge Stephen J. Murphy, III, Tahir Kazmi, 49, of Rochester Hills, Michigan, was sentenced to 57 months in prison, a $15,000 fine, and a term of supervised release based on his plea of guilty to accepting bribes. Kazmi, a political appointee in the Wayne County government, had accepted cash, trips to Hawaii, Turkey, and Florida, and other things of value totaling $70,000 between 2009 and 2011 from a county IT contractor, who was overseen by Kazmi. After Kazmi learned that the FBI was investigating Wayne County corruption, Kazmi engaged in a conspiracy with Wayne County appointee Zayd Allebban in an effort to obstruct justice and to cover up the bribes received by Kazmi.
Thus far in the investigation of corruption in the Wayne County government, five men have been convicted of either corruption or obstructing the investigation. Defendant Zayd Allebban was sentenced to 41 months in prison on September 6, 2013. Defendant David Edwards, Kazmi’s Deputy Chief Information Officer was sentenced to 12 months in prison on September 27, 2013. The other two convicted defendants, Michael Grundy and Keith Griffin have yet to be sentenced.
United States Attorney McQuade said, “The court’s sentence today sends a strong message that public officials who use their positions of trust to personally profit will be punished. Public officials should serve the interests of the people, not their own interests.”
"Government officials who breach the public trust for their own selfish purposes, and in this instance conspire with others in an attempt to cover up their criminal activity, will continue to be pursued aggressively and brought to justice," said Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. "Today's sentence sends another message that public servants are entrusted to serve the public, not themselves."The case was investigated by agents of the FBI. It is being prosecuted by Assistant United States Attorneys David A. Gardey and Gjon Juncaj.
Former Sanford Man Pleads Guilty to Bank Robbery ChargeRead the Press Release
Contact: Darcie McElwee
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Michel
D’Angelo a/k/a “Karma,” 34, formerly of Sanford, Maine, pled guilty yesterday in U.S. District
Court in Portland to robbing Kennebunk Savings Bank in Berwick, Maine on September 21,
2012.According to court records, D’Angelo entered the bank wearing a women’s sweat suit, a
wig and sunglasses and carrying a purse. He approached the teller counter and demanded cash
stating that he had a bomb in his bag and that he would set it off if the teller pushed any buttons.
He absconded with $1,298.25. D’Angelo was assisted by his girlfriend, Jennica Miller who gave
him her clothing and accessories, drove the getaway car, and placed diversionary 911 emergency
calls to the Berwick police at the time of the robbery falsely claiming that she had been stabbed
by her boyfriend.D’Angelo faces up to 20 years in prison and a $250,000 fine. He will be sentenced after
the completion of a presentence investigation report by the United States Probation Office. For
her involvement, on January 14, 2014 Miller pled guilty to aiding and abetting the bank
robbery. She awaits sentencing.This case was investigated by the Federal Bureau of Investigation, and the Berwick and
Kittery, Maine and Middleborough and New Bedford, Massachusetts police departments. U.S.
Attorney Delahanty praised the cooperation among these law enforcement agencies noting that
“this bank robbery was solved because local and federal law enforcement agencies across two
states worked closely together.”Former Sales Representative Pleads Guilty in Manhattan Federal Court to Multimillion-Dollar Scheme That Targeted Debt-Ridden ConsumersRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that BORIS SHULMAN, a former sales representative of Mission Settlement Agency (“Mission”), pled guilty to fraud charges for his role in a multimillion-dollar scheme that victimized more than 1,200 debt-ridden individuals across the country. SHULMAN, who was charged in May 2013, pled guilty today in Manhattan federal court before U.S. District Judge Paul G. Gardephe. He is the fourth defendant to plead guilty in the case.
According to the allegations contained in the Indictment against Mission, SHULMAN, and three other Mission employees, other documents filed in Manhattan federal court, and statements made at related court proceedings:
Mission offered “debt settlement” services to financially disadvantaged individuals who were struggling or unable to pay their credit card debts. Like other purported debt settlement providers, Mission held itself out as a company that could successfully negotiate to lower the overall debt its customers owed to credit card companies and banks.
The defendants targeted financially disadvantaged individuals known to be struggling to pay credit card debt and reached out to them through telemarketing and mail solicitations. Thereafter, Mission’s sales representatives typically spoke to the prospective customers on the phone, describing Mission’s work and its ability to renegotiate debt.
From 2009 through May 2013, the defendants systematically exploited and defrauded over 1,200 financially disadvantaged individuals across the country who were struggling to pay their credit card debts. They tricked people into paying Mission for purported debt settlement services by lying to prospective customers about the agency’s ability to help settle their debts, the fees that Mission charged, and its purported affiliation with the federal government. In connection with the scheme, Mission received over $6.6 million in fees. For more than 1,200 of its customers, Mission took fees totaling nearly $2.2 million and never paid a penny to the customers’ creditors.
SHULMAN served as a Mission sales representative from 2009 through 2012. In that capacity, he solicited and lied to prospective customers about the agency’s fees in order to induce them to become Mission customers.
SHULMAN, 27, of Brooklyn, New York, pled guilty to one count of conspiracy to commit mail and wire fraud, one count of mail fraud, and one count of wire fraud. He faces a maximum sentence of 60 years in prison. SHULMAN is scheduled to be sentenced by Judge Gardephe on May 30, 2014 at 2:30 p.m. As part of his guilty plea, he agreed to forfeit $2,196,522 to the United States.
Mission and six individuals – including SHULMAN and Mission’s owner, Michael Levitis – were charged in connection with the scheme. Defendant Denis Kurlyand pled guilty to the Indictment in August 2013. Defendants Felix Lemberskiy and Zakhir Shirinov pled guilty to Informations in April 2013 in connection with this case. The charges against the remaining defendants are merely allegations, and they are all presumed innocent unless and until proven guilty.
Mr. Bharara praised the investigative work of the United State Postal Inspection Service. He also thanked the Consumer Financial Protection Bureau for referring this case to this Office and for their assistance in this matter.
The prosecution of this case is being handled by the Office’s Complex Frauds Unit. Assistant United States Attorneys Nicole W. Friedlander and Edward A. Imperatore are in charge of the prosecution. Assistant United States Attorney Carolina A. Fornos of the Office’s Asset Forfeiture Unit is responsible for the forfeiture aspects of the case.
U.S. v. Mission Settlement Agency, et al Indictment
Former Police Chief in Rising Star IndictedRead the Press Release
Federal Grand Jury Indicts William Kelcy on Theft of Government Property
and Firearm ChargesLUBBOCK, Texas — A federal grand jury in Lubbock has returned a two-count indictment against the former Chief of the Rising Star Police Department. William Jason Kelcy, 41, is charged with one count of theft of government property and aiding and abetting and one count of theft of a machine gun and aiding and abetting. Kelcy is expected to self-surrender in response to a summons and make an initial appearance before U.S. Magistrate Judge E. Scott Frost later this month. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Kelcy was employed as the Chief of Police of the Rising Star Police Department from June 11, 2009 to January 10, 2013. Rising Star, Texas, is located approximately 55 miles southeast of Abilene, Texas, in southwestern Eastland County.
Under the National Defense Authorization Act, the Defense Logistics Agency is authorized to transfer excess Department of Defense (DOD) property to federal and state law enforcement agencies under what is known as the “1033 Program.” The program was designed to increase the quality and quantity of equipment for law enforcement agencies by utilizing excess DOD property.
According to Count One of the indictment, during the time he served as police chief, Kelcy, by making false and fraudulent representations about the intended use and/or recipient(s) of equipment, sought and obtained more than $4 million worth of property and equipment from the 1033 Program. Kelcy fraudulently gave, sold, bartered, or otherwise disposed of the equipment to other law enforcement agencies, officers, and private citizens with no law enforcement responsibilities. In fact, Kelcy sold, traded, pawned or attempted to sell, trade, pawn, several high-value military surplus items that he fraudulently obtained through the 1033 Program.
Count Two of the indictment alleges that in late June 2012, Kelcy transferred and attempted to transfer a Thompson Ramo Wooldridge M14 machine gun.
An indictment is an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence until or unless proven guilty. However, upon conviction, each count of the indictment carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The Defense Criminal Investigative Service led the investigation with assistance from the City of Eastland, Texas and the Texas Department of Public Safety, which helps administer the 1033 Program throughout the state. Assistant U.S. Attorney Amanda R. Burch of the U.S. Attorney’s Office in Lubbock is in charge of the prosecution.
Former Mail Carrier from Fort Worth Sentenced to 30 Months in Federal Prison for Possessing Stolen MailRead the Press Release
FORT WORTH, Texas — A former carrier for the U.S. Postal Service, who pleaded guilty in October 2013 to one count of possession of stolen mail, was sentenced yesterday in federal court in Fort Worth, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
Hubert Lavell McDonald, 42, of Fort Worth, was sentenced by U.S. District Judge Terry R. Means to 30 months in federal prison and ordered to pay more than $400,000 in restitution to Cash America International, Inc. (CAI). Judge Means ordered that McDonald surrender to the Bureau of Prisons on March 10, 2014.
According to documents filed in the case, from June 2011 and December 2012, McDonald stole jewelry items mailed from CAI to the company’s corporate address in Fort Worth.
On March 9, 2012, special agents with the U.S. Postal Service Office of Inspector General (OIG) executed a search warrant at McDonald’s residence. Agents found a gold Bulova watch belonging to CAI that McDonald admitted he had stolen from his mail route. Additionally, during the search, agents found one gold “Joe Rodeo” watch belonging to CAI and $8,000 in cash proceeds from the sale of other mail matter that had been stolen.
The case was investigated by the U.S. Postal Service OIG. Assistant U.S. Attorney Chris Wolfe prosecuted.
Former Leader of Hindu Temple of Georgia Charged with Defrauding His Followers and Temple’s CreditorsRead the Press Release
ATLANTA – Annamalai Annamalai, a/k/a Dr. Commander Selvam, a/k/a Swamiji Sri Selvam Siddhar, the former leader of the now defunct Hindu Temple of Georgia, has been charged in a superseding indictment with 32 counts of fraud and obstruction-related charges.
“This defendant is charged with using his position in the temple to promote his fraud schemes,” said United States Attorney Sally Quillian Yates. “We urge anyone who believes they may have been defrauded by this defendant to notify law enforcement.”
"Annamalai exploited his position as a leader and spiritual adviser to enrich himself, by fleecing the people who trusted him with their most personal information," stated IRS Criminal Investigation, Special Agent in Charge, Veronica F. Hyman-Pillot. "IRS Criminal Investigation has 'followed the money trail' to ensure that these actions do not go unpunished."
According to United States Attorney Yates, the indictment, and other information presented in court: Annamalai generated income through the Hindu Temple of Georgia (“the Hindu Temple”) by charging fees to his followers in exchange for providing spiritual or related services. In a typical transaction, a follower agreed to purchase a particular service for a communicated price, and provided a credit card number by telephone to guarantee payment. Annamalai allegedly caused the followers’ credit card numbers to be charged on multiple occasions, in excess of the agreed amount and without authorization. If the followers disputed the charges with their respective credit card companies, Annamalai allegedly submitted false documentation to the credit card companies in support of the unauthorized charges.
For example, in some instances Annamalai delivered a free magazine to the followers through the United States mail with a certified mail receipt. The followers had not requested the free magazine, but it is alleged that Annamalai later submitted the signed certified mail receipt to the followers’ credit card companies in a false attempt to demonstrate that the followers had agreed to the disputed charges. The superseding indictment charges Annamalai with seven counts of bank fraud for causing false documents to be submitted to his followers’ credit card companies. The superseding indictment further alleges that the income generated by the Hindu Temple through these credit card charges was used to fund the personal lifestyle of Annamalai and his family, who owned or controlled numerous homes and real properties, luxury vehicles, and foreign bank accounts in India.
The superseding indictment also charges Annamalai with willfully filing a false tax return for the 2007 year, for failing to disclose his financial interest in foreign bank accounts held in India.
Annamalai, 48, of Baytown, Texas, and a co-defendant are also charged with one count of conspiring to commit bankruptcy fraud and 10 counts of bankruptcy fraud, in connection with the Hindu Temple’s petition for bankruptcy protection in August 2009. It is alleged that Annamalai and his co-defendant concealed assets from creditors and others by diverting credit card receipts and donations intended for the Hindu Temple to bank accounts in the name of a different entity. Annamalai is also charged with 10 counts of money laundering for allegedly using proceeds from the bankruptcy fraud to pay mortgages on properties that he owned, and payments to himself.
Finally, Annamalai is charged with three counts of obstruction or false statements in connection with the grand jury investigation and the bankruptcy proceeding. It is alleged that Annamalai transmitted a fraudulent email to an IRS Special Agent, which was falsely made to appear as if the email had been written and authored by a witness of the criminal investigation. The superseding indictment also alleges that Annamalai submitted a false affidavit to the grand jury, and a false affidavit to the Bankruptcy Court in connection with the Hindu Temple’s bankruptcy proceeding. Annamalai was detained following his arrest in November 2013, and remains in custody.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by Special Agents of the Internal Revenue Service Criminal Investigation. The United States Trustee’s Office provided valuable assistance throughout the investigation.
Individuals who believe they have been the victims of these alleged schemes are encouraged to call 404-338-7533.
Assistant United States Attorney Steven D. Grimberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Lafayette/Opelousas Housing Authority Director Pleads Guilty to Bribery and Bid Corruption ConspiracyRead the Press Release
LAFAYETTE, La. –United States Attorney Stephanie A. Finley announced today that Walter O. Guillory, 51, of Lafayette, pleaded guilty before U.S. District Judge Elizabeth Foote, to receiving bribes while running two housing authorities in the Acadiana area and also for his part in a conspiracy to award bids to a preferred contractor in Opelousas.
According to evidence presented at the guilty plea, Guillory served as the Executive Director of the Lafayette Housing Authority (LHA) from June 1998 to October 2010, and he served as Executive Director of the Opelousas Housing Authority (OHA) from November 2005 to November 2010. During this time period, Guillory sponsored a local baseball team. He solicited donations from various vendors and contractors of both the LHA and the OHA for “his baseball team.” From 2006 to 2010, the vendors were expected to make yearly donations in exchange for doing business with the housing authorities. Some of the contributions were spent on personal expenses and not for the baseball team. He solicited and received more than $100,000 in bribes from the vendors between 2006 and 2010.
Guillory is also accused of conspiring with others to circumvent bid laws in order to award construction contracts to one company who performed construction work for OHA. They used the fake bids to make it appear that several companies were placing bids on construction projects, but in fact, there was only one company being considered. In addition, they used interstate wire communication facilities including email transmissions for a variety of purposes, including sending and receiving emails related to contracts and false bids. Guillory approved these contracts with full knowledge that the bid rules, laws and regulations were not being followed from 2007 to 2009.
Guillory faces up to 10 years in prison for one count of receipt of a bribe by an agent of an organization receiving federal funds, and he faces 20 years in prison for one count of conspiracy to commit wire fraud. The charges also carry three years of supervised release, a $250,000 fine, forfeiture, and restitution. Sentencing is set for June 11, 2014.
The Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.
Former Lab Executive Sentenced for Tax-Related CrimesRead the Press Release
BOSTON – The former chief operating officer of a Woburn drug testing laboratory was sentenced yesterday for federal tax related crimes.
U.S. District Court Judge George A. O’Toole, Jr. sentenced Patrick Cavanaugh, 50, of Gloucester, to 18 months in prison and one year of supervised release. In 2013, Cavanaugh pleaded guilty to four counts of subscribing to false tax returns for the tax years 2005 through 2008.
Cavanaugh, the former chief operating officer of Calloway Laboratories, Inc., a urine drug testing company in Woburn, Mass., filed false federal income tax returns for tax years 2005 through 2008, by substantially underreporting his income during those tax years. During that period, while employed at Calloway, Cavanaugh received payments, in the form of checks and cash, from JAC Resources, Inc., a straw company that Cavanaugh owned and controlled, but failed to report the income on his federal income tax returns.
United States Attorney Carmen M. Ortiz; William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Philip Coyne, Special Agent in Charge of the Health and Human Services, Office of Inspector General, Office of Investigations; and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was prosecuted by Assistant U.S. Attorneys Sonya Rao and Amanda Strachan.
Former Information Technology Worker at Georgetown Toyota Plant Convicted by Jury for Damaging Computer SystemRead the Press Release
LEXINGTON, KY - A former information technology worker at the Toyota Motor Manufacturing, Kentucky, Inc., plant in Georgetown, KY., has been convicted of intentionally damaging the company’s computer systems.
Earlier this week, a federal jury in Lexington convicted 36-year-old Ibrahimshah Shahulhameed of intentionally damaging a protected computer through the transmission of malicious information, codes, and commands. The jury returned the verdict on Tuesday after approximately four hours of deliberation, following six days of trial.
Testimony at trial proved that Shahulhameed was fired from his contractor position at Toyota on August 23, 2012. During the hours following his termination, Shahulhameed used a Toyota issued laptop and his Toyota credentials to access the company’s computer network on several occasions from his home. Shahulhameed then made numerous unauthorized changes to the programming of different Toyota computer systems. Shahulhameed also attempted to delete and alter evidence that he had changed the settings of these computer systems. Shahulhameed’s actions caused multiple Toyota computer systems to malfunction. In the months that followed, Toyota spent substantial resources diagnosing and repairing the problems that Shahulhameed caused within a seven hour span.
The defendant was employed at Toyota as a contractor from early 2011 until August 23, 2012.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Perrye K. Turner, Special Agent in Charge, Federal Bureau of Investigation jointly announced the conviction.
The investigation was conducted by the FBI. Assistant U.S. Attorney Andrew T. Boone prosecuted this case for the U.S. Attorney’s Office on behalf of the federal government.
Shahulhameed will appear for sentencing on May 8, 2014. He faces a maximum of 10 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the federal statute before imposing a sentence.
Former Georgia Tax Return Preparer Sentenced for Tax FraudRead the Press Release
Irene Tamika Smith, a former professional tax-return preparer, was sentenced yesterday to serve 33 months in prison for conspiring with her co-workers to defraud the United States by filing false tax returns in order to receive fraudulently-inflated refunds for clients, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia announced today. Smith was also ordered to pay $566,171 in restitution to the Internal Revenue Service (IRS).
According to court documents, Smith worked at Quick Tax, a tax preparation business in Cordele, Ga. From 2006 through 2009, Smith conspired with her co-workers Greene Wylie Sheppard, Sabrina Johnson-Lavant and Chandra Henderson to obtain higher refunds on their clients’ returns by falsely inflating clients’ wages in order to exploit certain tax credits. Smith and her co-conspirators also purchased other people’s identities which they then offered to sell to clients so that the clients could obtain higher refunds by falsely claiming additional dependents on their tax returns. Smith and her co-conspirators maintained notebooks that kept track of the identities they sold and how much clients owed them for the false dependents. Over the course of the conspiracy, which spanned four years, Quick Tax claimed over $500,000 in fraudulent refunds.
Smith’s co-conspirators each pleaded guilty to participating in the conspiracy and were sentenced in 2013. Sheppard was sentenced to serve 56 months in prison, Henderson was sentenced to serve 18 months in prison and Johnson-Lavant was sentenced to serve eight months in prison.
The case was investigated by special agents of IRS–Criminal Investigation, and Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Tax Division prosecuted the case.
Former Georgia Tax Return Preparer Sentenced for Tax FraudRead the Press Release
WASHINGTON –Irene Tamika Smith, a former professional tax-return preparer, was sentenced yesterday to serve 33 months in prison for conspiring with her co-workers to defraud the United States by filing false tax returns in order to receive fraudulently-inflated refunds for clients, Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia announced today. Smith was also ordered to pay $566,171 in restitution to the Internal Revenue Service (IRS).
According to court documents, Smith worked at Quick Tax, a tax preparation business in Cordele, Ga. From 2006 through 2009, Smith conspired with her co-workers Greene Wylie Sheppard, Sabrina Johnson-Lavant and Chandra Henderson to obtain higher refunds on their clients’ returns by falsely inflating clients’ wages in order to exploit certain tax credits. Smith and her co-conspirators also purchased other people’s identities which they then offered to sell to clients so that the clients could obtain higher refunds by falsely claiming additional dependents on their tax returns. Smith and her co-conspirators maintained notebooks that kept track of the identities they sold and how much clients owed them for the false dependents. Over the course of the conspiracy, which spanned four years, Quick Tax claimed over $500,000 in fraudulent refunds.Smith’s co-conspirators each pleaded guilty to participating in the conspiracy and were sentenced in 2013. Sheppard was sentenced to serve 56 months in prison, Henderson was sentenced to serve 18 months in prison and Johnson-Lavant was sentenced to serve eight months in prison.
The case was investigated by special agents of IRS–Criminal Investigation, and Trial Attorneys Alexander Effendi and Charles Edgar Jr. of the Tax Division prosecuted the case.Inquiries regarding the case should be directed to Pamela Lightsey, United States Attorney's Office at (478) 621-2603.
Former Employee of Defense Contractor and Wife Sentenced for Conspiring to Obtain Millions in Fraudulent Scheme Involving Vehicle Parts for Afghan National ArmyRead the Press Release
ALEXANDRIA, Va. – Keith Johnson, 46, and his wife, Angela Johnson, 45, of Maryville, Tenn., were sentenced today for conspiring to commit wire fraud. Keith Johnson was sentenced to 30 months in prison, and Angela Johnson was sentenced to serve six months in prison, to be followed by six months of house arrest. Both defendants also were sentenced to two years of supervised release and ordered to forfeit $2,034,684 to the United States.
Dana J. Boente, Acting United States Attorney for the Eastern District of Virginia; Mythili Raman, Acting Assistant Attorney General of the Justice Department’s Criminal Division; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; Robert E. Craig, Defense Criminal Investigative Service (DCIS) Special Agent in Charge of the Mid-Atlantic Field Office; John Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR); and Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU), made the announcement after the pleas were accepted by United States District Judge Leonie M. Brinkema.
According to court documents, Keith Johnson served as the Program Manager for a Department of Defense contractor that operated a Central Maintenance Facility (CMF) in Kabul, Afghanistan and other facilities in that country to maintain and repair vehicles used by the Afghan National Army. In his position during 2007-2008, Keith Johnson was involved in purchasing vehicle parts from vendors.
As part of the scheme, Keith Johnson and his wife, Angela, formed a company in Tennessee, Military Logistics Support (MLS), and listed only the names of relatives as officials in the documents filed. Angela Johnson operated the company. When Keith Johnson’s company solicited quotes for different vehicle parts that were needed, Angela Johnson, using her maiden name of “Angela Gregory” to conceal her relationship to Keith Johnson, responded with quotes based on parts that she was able to purchase from other vendors. Keith Johnson used his position as Program Manager to write letters justifying awards of purchase orders for parts to MLS without seeking competitive quotes, and in instances in which there had been competitive quotes, approving recommendations that the awards be made to MLS.
The Johnsons also conspired with John Eisner and Jerry Kieffer, two individuals who worked at the CMF as subcontractors to Keith Johnson’s company, to have Keith Johnson similarly steer purchase orders for other types of vehicle parts to Eisner’s and Kieffer’s separate company, Taurus Holdings. Eisner submitted the quotes for Taurus using a fake name to conceal his connection to the subcontractor. Eisner and Kieffer paid kickbacks to the Johnsons and on occasion engaged in collusive bidding with the Johnsons, so that MLS could win competitions for certain purchase orders. Eisner and Kieffer were sentenced on Dec. 18, 2013 by Judge Brinkema to one year imprisonment and six months imprisonment, respectively.
As a result of the scheme, MLS was awarded more than $11 million worth of purchase orders for vehicle parts by Keith Johnson’s company.
This case was investigated by DCIS, FBI, SIGAR, and Army MPFU. Assistant United States Attorneys Jack Hanly and Ryan Faulconer of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Daniel Butler of the Criminal Division’s Fraud Section, who also is a Special Assistant U.S. Attorney for the Eastern District of Virginia, are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.Former District of Columbia Government Employee Pleads Guilty to Conspiring to Steal About $800,000 in BenefitsDefendant Created Fake Accounts to Generate Medicaid, Food Stamps, Other Benefits; Her Sister Also Participated in the SchemeRead the Press Release
WASHINGTON – Aretha Holland-Jackson, a former employee of the District of Columbia Department of Human Services (DHS), pled guilty today to carrying out a scheme that defrauded the government of roughly $800,000 in Medicaid, food stamps, and other benefits.
The plea was announced by U.S. Attorney Ronald C. Machen Jr. and Charles J. Willoughby, Inspector General of the District of Columbia.
Holland-Jackson, 45, of Bowie, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of conspiracy to commit wire fraud. The Honorable Amy Berman Jackson scheduled sentencing for May 7, 2014. Under federal sentencing guidelines, she faces a likely sentence of 33 months to 41 months in prison, as well as financial penalties. The plea agreement calls for Holland-Jackson to pay $807,789 in restitution to the District of Columbia government. She also will be subject to a forfeiture money judgment in the same amount.
Also in court today, Holland-Jackson’s sister, Allison Holland, pled guilty to conspiracy to commit wire fraud for her role in the scheme. Holland, 47, of Cheltenham, Md., faces a likely sentence of 15 to 31 months in prison under federal sentencing guidelines, as well as financial penalties. She also must pay full restitution as well as a forfeiture money judgment. Allison Holland also is to be sentenced on May 7, 2014.
According to the government’s evidence, from February 2005 until September 2013, Holland-Jackson was employed as a social services representative in DHS’s Office of Medical Assistance. Her duties included processing applications for public assistance. She had access to DHS’s computer system and was able to open cases and activate benefits of Medicaid, food stamps, and Temporary Cash Assistance for Needy Families (TANF). DHS distributed food stamp and TANF benefits through an electronic benefits transfer card (EBT) that was provided to beneficiaries who qualified for assistance. These cards could be used at ATMs.
From February 2011 through September 2013, Holland-Jackson and others, including her sister, participated in a scheme to defraud the benefits programs. Holland-Jackson used fictitious names and Social Security numbers to activate 23 fraudulent cases. She and others, including her sister, then used the benefits cards associated with these fraudulent accounts to make hundreds of thousands of dollars in withdrawals from ATMs. Allison Holland used three of the fraudulent EBTs. Holland-Jackson also activated Medicaid benefits in the 23 fraudulent cases.
All told, according to the court papers, the scheme cost the District of Columbia government at least $783,876: $196,596 in fraudulent food stamp benefits, $233,227 in fraudulent TANF benefits, and $354,053 in fraudulent Medicaid benefits, among other costs.
Holland-Jackson was arrested in September 2013 after a law enforcement investigation.
“As a District of Columbia employee, Aretha Holland-Jackson was supposed to provide benefits to needy families, but instead she used her position of trust to steal more than $800,000 of those benefits to finance her own lifestyle,” said U.S. Attorney Machen. “She used fake names and social security numbers to load up ATM cards with hundreds of thousands of dollars of benefits that she could withdraw in cash. Public assistance fraud diverts resources intended to serve families with real needs. This prosecution shows how committed we are to aggressively pursuing government employees who think they can get away with robbing taxpayers of their hard-earned money.”
“The Office of the Inspector General continues to be proud of its role in collaborating with local entities and our federal partners in rooting out criminal conduct and preventing the misuse of District monies, the latter of which is all the more important during these economic times,” said Inspector General Willoughby.
In announcing the plea, U.S. Attorney Machen and Inspector General Willoughby praised the work of those who investigated the case from the District of Columbia’s Office of the Inspector General. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD) and the District of Columbia Department of Human Services. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Corinne Kleinman and former Paralegal Specialist Diane Hayes. Finally, they commended the work of Assistant U.S. Attorney David S. Johnson, who is prosecuting the matter, and Assistant U.S. Attorney Diane Lucas, who is assisting with forfeiture issues.
14-040Former Deputy Constable Charged with Tax EvasionRead the Press Release
HOUSTON – Vernon Matthews has been charged with using dependent information of people he contacted during his time as a deputy constable to file false tax returns, announced United States Attorney Kenneth Magidson. Matthews is a 21-year veteran of law enforcement and was a former Precinct 6 deputy constable.
Matthews was charged in a five-count indictment returned Tuesday, Feb. 11, 2014. He surrendered to authorities this morning and is set to make an initial appearance before U.S. Magistrate Judge George C. Hanks at 2:00 p.m. today.
The indictment alleges Matthews obtained names and identifying information of the children of parents he contacted during his service as a deputy constable. Matthews then allegedly claimed the children as dependent nephews and nieces on his 2007, 2008, 2010 and 2011 tax returns. He also claimed “child care” and educational expenses for his non-existent relatives and made false statements to the FBI when questioned about the claims in a March 2013 interview, according to allegations.
If convicted, Matthews faces up to five years in federal prison on the false statement charge and each of the four counts of tax evasion. Making a false statement also carries a possible $250,000 fine, while the tax evasion charges could result in a $100,000 fine on each conviction.
Internal Revenue Service-Criminal Investigation, FBI and the Texas Rangers investigated. Assistant United States Attorney James McAlister is prosecuting.